Finning International Inc. · TSX:FTT

Finning International — Investor Presentation (June 2016)

12 slides from Finning International's investor presentation, Jun 1, 2016

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION Steve Nielsen, EVP and CFO Mauk Breukels, VP Investor Relations Montreal, Toronto June 1-2, 2016

  2. Slide 2: Forward Looking Information

    Forward Looking Information This report contains statements about the Company’s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what the Company knows and expects today to make a s

  3. Slide 3: Finning Overview

    Finning Overview  World’s largest Caterpillar dealer - selling, renting and providing Market Statistics(1) parts and service for Caterpillar equipment and engines Ticker FTT (TSX)  Serving customers for over 80 years and delivering value to Share price 21.54 public shareholders for over 45 years %

  4. Slide 4: Compelling Value Proposition

    Compelling Value Proposition Great products and territories  Aligned with Caterpillar – world’s best heavy equipment company  Operating in high-quality regions with significant long-term growth opportunities  Customer diversification across many sectors Resilient business model and reduced cost s

  5. Slide 5: Canada

    Canada Transforming for sustainable improvement in customer and financial results Sustainable Cost Structure Progress in challenging environment(1) Workforce and facility optimization Market leadership – core industries 2014 - 2016  Market share  while industry  ~60%  Workforce  22% (1,300 peop

  6. Slide 6: South America

    South America Successfully managing through challenging market conditions Chile – difficult macro-economic landscape  New wave of cost reductions from mining customers in early 2016  Step down in product support volumes  Lower parts consumption due to reduced fleet utilization  Service revenues

  7. Slide 7: UK and Ireland

    UK and Ireland Reshaping the business to lower the cost to serve Macro-economic landscape  Key markets softened significantly, particularly coal, steel, and oil & gas  Slow start to construction in 2016  Brexit uncertainty impacting business confidence Reshaping the business to lower the cost to

  8. Slide 8: Resilient Business Model

    Resilient Business Model Relatively consistent EBITDA(1) and strong cash flows conversion Free Cash Flow $ millions, except where specified 2012 2013 2014 2015 ~$1.3 billion (FY 2013 - Q1 2016) (1) (1) EBITDA 701 737 749 604 Net rental expenditures (93) (73) (35) (24) 35% Inventory Net capital expen

  9. Slide 9: Capital Discipline

    Capital Discipline Strong balance sheet provides financial flexibility Increased capital discipline  Rental investment flexible to market demand  Increase in capex is discretionary, based on market outlook and cash flow from working capital Focus on working capital management  Continued reduction

  10. Slide 10: Key Takeaways

    Key Takeaways  Successfully managing through difficult market environment  Embraced the downturn to advance operational excellence agenda  Acted decisively to right-size the business  Winning important deals and capturing market share  Supporting our customers through the trough - customer loya

  11. Slide 11: Appendix

    APPENDIX Calgary May 26, 2016

  12. Slide 12: Non-GAAP Measures and Significant Items

    Non-GAAP Measures and Significant Items  EBIT: earnings before finance costs and income taxes  EBITDA: earnings before finance costs, income taxes, depreciation and amortization; EBITDA is commonly regarded as an indirect measure of operating cash flow  Free cash flow (FCF): cash flow provided by

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