Finning International Inc. · TSX:FTT

Finning International — RBC Canadian Automotive, Industrials & Transportation Conference 2020

16 slides from Finning International's conference presentation, May 13, 2020

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION Greg Palaschuk, EVP and CFO Amanda Hobson, SVP Investor Relations and Treasury RBC Canadian Automotive, Industrials & Transportation Conference May 13, 2020

  2. Slide 2: Disclosures

    Disclosures Forward-looking information This presentation includes “forward-looking information” (as defined in applicable Canadian securities legislation) that is based on expectations, estimates and projections that we believe are reasonable as of the date of this presentation, but may ultimately

  3. Slide 3: Finning Overview

    Finning Overview  Largest Caterpillar dealer Market Statistics(1) - FTT (TSX) Share price 17.67  Unrivalled service since 1933 Market Cap 2.9B S&P/DBRS rating BBB(+*-/high)  Diversified by geography, customer base, product and sector Annual dividend / share 0.82  ~12,800 employees Dividend yield

  4. Slide 4: Strategic Framework

    Strategic Framework PURPOSE VISION VALUES We believe in partnering and Leveraging our global expertise and We are trusted innovating to build and power insight, we are a trusted partner in We are collaborative a better world. transforming our customers’ performance. We are innovative We are passiona

  5. Slide 5: Strategic Focus Areas

    Strategic Focus Areas CAPTURE GROWTH  Ultra-class mining vehicles - autonomy, electric drive Lead Mining  Integrated Knowledge Centres (IKCs)  Mining fleet replacement Market Share Customer  Strong alignment with Caterpillar Loyalty Grow Construction  Customer Value Agreements (CVAs) Product Su

  6. Slide 6: COVID-19 Response and Key Priorities

    COVID-19 Response and Key Priorities  Prioritizing health and safety of employees, customers, and communities  Supporting operations of critical services (e.g. hospitals, emergency services, utilities) Employees  Activated robust business continuity plans  Implemented social distancing and work

  7. Slide 7: Diversified and Resilient Business

    Diversified and Resilient Business  Resilient product support business Strong  Leaner cost structure vs prior downturns Business Model  Diversification by geography, industry, product - critical in a higher-risk environment  Rejuvenated, engaged, and action-oriented leadership team  Cost and ca

  8. Slide 8: Resilient Business Model Anchored by Product Support

    Resilient Business Model Anchored by Product Support Consolidated Product Support and New Equipment Revenue $ 7,000,000 Product Support CAGR 6,000,000 5,000,000 2008 to 2019 7% 4,000,000 New Equipment Range 3,000,000 2008 to 2019 2,000,000 Maximum $3.1B 1,000,000 Average $2.5B 0 Minimum $1.8B 2008 2

  9. Slide 9: Oil Sands Mining: Established, Large-Scale and Long-Life Resource

    Oil Sands Mining: Established, Large-Scale and Long-Life Resource 30+ years of resource life PRODUCERS PROJECTS in a typical oil sands mining project  Muskeg River CNRL  Jackpine  Horizon  Mildred Lake Syncrude Suncor Imperial Oil  Aurora CNRL CNRL  Millennium Syncrude Suncor  North Steepbank

  10. Slide 10: Oil Sands – Significant Product Support Opportunity

    Oil Sands – Significant Product Support Opportunity Product Support Drivers CAT 797 Truck - Population 340  Large and aging equipment population  Best-in-class product support capabilities  OEM - component rebuild approach  IKC(2) - reduces costs and improves productivity for customers  Improve

  11. Slide 11: Advanced Digital and e-Commerce Capabilities

    Advanced Digital and e-Commerce Capabilities 80% CAT Assets Connected Technology – a great risk mitigator in a crisis in Finning territories  Machine Condition Monitoring  eCommerce on www.parts.cat.com  Integrated Knowledge Centers (IKCs)  Integrated Procurement  Marketing Automation  24/7 Ca

  12. Slide 12: Medium-Term Outlook

    Medium-Term Outlook GROWTH DRIVERS MEDIUM-TERM OUTLOOK Infrastructure investment (e.g. LNG, TMX, Keystone) Product support (e.g. IKC1, rebuilds, CVAs2) CANADA Mining equipment replacement Autonomy adoption Mining equipment replacement Autonomy adoption SOUTH AMERICA Construction product support grow

  13. Slide 13: Highly Differentiated, Rapidly Growing Businesses

    Highly Differentiated, Rapidly Growing Businesses OEM Remanufacturing - Canada Integrated Knowledge Centres Cloud Data Centres Antofagasta Service Center - Chile Canada / Chile Component rebuild Reduce cost and improve productivity Strategic partnerships with world’s approach for mining customers la

  14. Slide 14: Sustainability Has Been a Long-Term Priority for Finning

    Sustainability Has Been a Long-Term Priority for Finning PERFORMANCE HIGHLIGHTS Over 200,000 youth engaged through STEM Safety and health partnerships in 2019 Inclusion and diversity Apprenticeship Technical Training ~30 hours per Products employee in 2019 Employee development Communities Women on B

  15. Slide 15: Capital Allocation

    Capital Allocation Cumulative Capital Allocation – 2013 through 2019 Cumulative Free Cash Flow – 2013 through 2019 ($ millions) 3,500 Debt repayment 710 Dividends Retained cash & other 3,000 2,500 510 Share repurchases $1.9 B 2,000 860 Acquisitions Reinvested 1,500 in the business $1,220M 230 1,000

  16. Slide 16: Strong Liquidity Profile

    Strong Liquidity Profile Total Global Credit Capacity1 Enhanced financial flexibility and liquidity with new $500M committed credit facility Regional Credit Facilities $0.9B 5-Year Committed Revolving Credit $2.7B Facility $1.3B Long-term Debt Maturity Schedule % of total long-term debt maturing eac

Finning International — RBC Canadian Automotive, Industrials & Transportation Conference 2020 on 6ix