Finning International Inc. · TSX:FTT
Finning International — Investor Day (December 2004)
14 slides from Finning International's investor day presentation, Dec 14, 2004
Slide 1: Investor Day
Investor Day December 14, 2004 Steve Mallett President
Slide 2: Profile of the Operation
Profile of the Operation The Power Systems business is essentially the sale and servicing of engines. CAT produces a wide variety of engines under several brand names to serve various markets needing different products and different distribution channels.
Slide 3: Organizational Chart
Organizational Chart STEVE MALLETT PRESIDENT POWER SYSTEMS INTERNATIONAL NEIL DICKINSON DAVID PRIMROSE TONY GUGLIELMIN MARCELLO MARCHESE Managing Director Power Systems Director VP Corporate Development Business Development Manager Finning (UK Ltd. UK & Strategic Planning Finning International DIPER
Slide 4: Products
Products Engines Heavy Fuel Large Diesel Fuel Gas Fuel Small & Medium Diesel Fuel Gas Fuel Turbines Gas Fuel Gas Fuel Gas Fuel Gas Fuel 50 100 200 500 1,000 2,000 5,000 10,000 15,000 20,000 Horsepower
Slide 5: Finning Distribution - CAT Power
Finning Distribution - CAT Power Canada UK Chile Argentina/ Bolivia/Uruguay CAT 9 9 9 9 MAK 9 9 9 9 F.G. Wilson 9 F.G. WILSON Perkins 9* 9** 9 Solar Turbine*** 9 9 9 9 *As of January 1, 2004 **As of December 1, 2004 ***Sales agent only - project-to-project
Slide 6: Markets
Markets Electric Power (EPG) Oil & Gas Marine Trucks Industrial
Slide 7: Revenue Breakdown
Revenue Breakdown Blue Line $17 Total revenue $358M South America (9 mos. to Sept 30, Canada $55 $169 2004), up 16% from 9 mos. 2003 2004 forecast revenue: ~$450M Order backlog at Sept 30 = $100M, compared UK $117 to $90M Q2 2004 and $75M Q3 2003 Blue Line = non-CAT branded product. Includes D
Slide 8: 2005 Outlook: Regional Economic Backdrop
2005 Outlook Regional Economic Backdrop High oil and natural gas prices driving demand for equipment and services High copper and precious metal prices continue to support need for power at mines Growing demand for on-highway truck business in Canada CAT now has a complete line of Tier 2 emi
Slide 9: 2005 Outlook
2005 Outlook Revenue growth of 20%+ “Yellow Line” up 10-15% “Blue Line” up ~175% (addition of Perkins UK) EBIT Growth 20%+
Slide 10: 2005 Outlook: Yellow Line Highlights
2005 Outlook “Yellow Line” Highlights Canada Revenue up ~15% Strong oil and gas market and focus on parts and service On-highway truck market buys ACERT technology UK Revenue up ~10% Improvement in some business segments in UK such as marine and electric power generation South Americ
Slide 11: 2005 Outlook: Blue Line Highlights
2005 Outlook “Blue Line” Highlights Diperk Chile Revenue up ~10% New business opportunities in the industrial market Expansion of geographic coverage Perkins Western Canada Revenue up ~50% Growing demand from Alberta and BC Perkins UK New operations will add ~$50M of revenue
Slide 12: Growth Opportunities
Growth Opportunities Confident in achieving $1B of revenue by 2008 Organic growth (developing business via internal projects to increase penetration) complemented by strategic growth (introduction of new products and new market segments) Distribution of new product lines Expansion of rental
Slide 13: Growth Path Towards $1B Goal
Growth Path Towards $1B Goal $1,100 1 billion $1,000 Strategic $900 growth $800 $700 $600 Organic growth and internal $500 projects $400 $300 2001a 2002a 2003a 2004f 2005f 2006f 2007f 2008f
Slide 14: Summary
Summary Attractive growth Diversified markets Expertise that can be leveraged to other territories