Finning International Inc. · TSX:FTT
Finning International — Q3 2023 Earnings Presentation
12 slides from Finning International's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Results
Q3 2023 Results Kevin Parkes Greg Palaschuk President and CEO EVP and CFO November 7, 2023 See slides 10 and 11 for important information on forward-looking information, currency, and specified financial measures, including non- GAAP financial measures
Slide 2: Go-Forward Strategic Priorities
Go-Forward Strategic Priorities Our people are our biggest Fostering a safe, secure, and Empowering our people to competitive advantage prosperous place to work build customer loyalty Drive Product Support Full Cycle Resilience Sustainable Growth Continued profitable growth Earnings consistency Targ
Slide 3: Executing our Strategy and Building on Positive Momentum
Executing our Strategy and Building on Positive Momentum Drive Product Support Full Cycle Resilience Sustainable Growth Product Support Revenue Adjusted ROIC (1) Total Addressable Market (2) 13% 20.2% 190bps >$5B >$5B 2x Q3 2023 vs Q3 2022 Q3 2023 vs Q3 2022 Used (3) Rental (4) Power Revenue All Ter
Slide 4: Q3 2023 Results
Q3 2023 Results vs Q3 2022 Q3 2023 Summary Net Revenue Revenue growth led by mining, with large equipment deliveries and strong $2.4B 16 % product support volumes Power systems revenues up across all regions on strong demand and project execution Solid operating margins, with SG&A as % of net
Slide 5: Net Revenue
Q3 2023 Net Revenue All comparisons are to Q3 2022 results unless indicated otherwise Net Revenue by Line of Business $ millions Q3 2023 Revenue Highlights 2,437 3 153 New equipment sales up 28%, driven primarily by mining (24) 7 deliveries and higher power systems sales 2,107 191 Broad based gr
Slide 6: EBIT
Q3 2023 EBIT EBIT All comparisons are to Q3 2022 results unless indicated otherwise $ millions Q3 2023 EBIT Highlights Gross profit up 14% on strong new equipment and (51) 252 product support volumes 70 5 224 4 Gross profit as a % of net revenue (1) down 30 basis points primarily due to a higher
Slide 7: Q3 2023 Results – Canada
Q3 2023 Results – Canada Net Revenue EBIT Adjusted ROIC $ Millions $ Millions, as a % of Net Revenue Adjusted, 4 Quarter Average 1,373 11.7% 20.0% 24.0% 1,268 9.9% 10.8% 20.2% 19.9% 180 18.2% 1,072 18.0% 10.0% 125 136 137 0.0% 120 12.0% -10.0% 6.0% 60 -20.0% 0 -30.0% 0.0% Q3 2022 Q2 2023 Q3 2023 Q3
Slide 8: Q3 2023 Results – South America
Q3 2023 Results – South America Net Revenue EBIT Adjusted ROIC $ Millions $ Millions, as a % of Net Revenue 4 Quarter Average 1000 27.6% 856 853 12.3% 12.1% 12.3% 26.4% 20.0% 22.7% 800 129 104 104 10.0% 692 85 0.0% 600 86 -10.0% 400 43 -20.0% 200 0 -30.0% Q3 2022 Q2 2023 Q3 2023 Q3 2022 Q2 2023 Q3 2
Slide 9: Q3 2023 Results – UK & Ireland
Q3 2023 Results – UK & Ireland Net Revenue EBIT Adjusted ROIC $ Millions $ Millions, as a % of Net Revenue 4 Quarter Average 343 330 6.2% 5.5% 5.9% 10.0% 24.0% 316 5.0% 36 0.0% 16.6% 15.9% 16.0% 14.1% 21 -5.0% 19 24 18 -10.0% 8.0% -15.0% 12 -20.0% -25.0% 0 -30.0% 0.0% Q3 2022 Q2 2023 Q3 2023 Q3 2022
Slide 10: 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
Slide 11: Disclosures
Disclosures Currency Monetary amounts referred to in this presentation are in Canadian dollars unless noted otherwise. All variances and ratios in this presentation are based on the functional currency of each operation (Canada: CAD, South America: USD, UK & Ireland: GBP). These variances and ratios
Slide 12: 2023 – 2024 Earnings Schedule
2023 – 2024 Earnings Schedule All dates and times are preliminary and subject to change Release Date Investor Call Time Quarter Investor Call Date after market close Eastern Q4 2023 February 6, 2024 February 7, 2024 10:00 AM Q1 2024 May 6, 2024 May 7, 2024 10:00 AM Q2 2024 August 6, 2024 August 7, 2
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