Finning International Inc. · TSX:FTT
Finning International — Investor Day (December 2004)
15 slides from Finning International's investor day presentation, Dec 14, 2004
Slide 1: Investor Day
Investor Day December 14, 2004 Nick Lloyd Managing Director Finning Group UK
Slide 2: Great Britain Population & Densities
Great Britain Population & Densities Total area over 244,000 sq km GDP Per Capita £18,524 Glasgow Home to nearly Newcastle 60 million people Manchester Leeds Birmingham London Source : Office for National Statistics – 2004 Blue Book Current Prices
Slide 3: Population Driven Economy
Population Driven Economy I can be I can be a a customer consumer of goods and of goods and services services UK population and GDP are drivers of Finning’s UK operations UK infrastructure is constantly expanding Finning UK and Hewden are uniquely positioned to benefit from the opportunities c
Slide 4: Current Network
Current Network Finning Group UK - over 380 branches
Slide 5: UK Economic Performance and Forecast
UK Economic Performance and Forecast 2001 2002 2003 2004 2005 2006 Actual Actual Actual Forecast Forecast Forecast GDP - Growth 2.2% 1.9% 2.8% 3.2% 2.6% 2.5% (% growth on previous year) Inflation - RPIX 2.1% 2.2% 2.8% 2.3% 2.4% 2.5% (excluding MIP) Construction Output +2.1% +4.2% +4.4% +3.4% +2.5% +
Slide 6: Construction Market
Construction Market Total Output (at Constant Prices) % Year on Year Growth 90,000 80,000 70,000 £ Million 2000 Prices 60,000 50,000 40,000 10 Year CAGR 30,000 Average 20,000 2.42% 10,000 0 1997 1998 1999 2000 2001 2002 2003 2004 F 2005 F 2006 F Source: DTI Construction Statistics Annual 2004 / Expe
Slide 7: Construction, Industrial and Services Industry Drivers
Construction, Industrial and Services Industry Drivers The UK Dynamics Infrastructure Consumer Industrial Spending Spending Spending Low Interest Growth in Strong Labour Rates GDP Market Feel Good Factor Economic Construction & Civil Engineering, Legislation Trends Industrial & Services Government G
Slide 8: Construction, Industrial and Services Industry Drivers
Construction, Industrial and Services Industry Drivers UK government’s infrastructure spending of £180B remains on course Low interest rates drive house building Government has announced 640,000 additional new homes, over and above current planned, with associated infrastructure (Nov 2004) C
Slide 9: UK Statistics – Building Materials & Products Moved
UK Statistics – Building Materials & Products Moved 2 billion tonnes of goods moved by road around the UK each year Over 555 million tonnes of 400,000 km of road freight move through UK ports each year Approx. 30 million Over 11 million tonnes of tonnes of coal mined clay and shale excavated Over 94
Slide 10: UK Statistics – Building Materials
UK Statistics – Building Materials Building materials segment: Consumes more aggregates and associated products repairing the roads than in the original build Increased house building demands more cement, bricks, concrete, etc. “Build, maintain & repair” cycle consistently offers opportunities
Slide 11: Market Profiles – Opportunity
Market Profiles – Opportunity Total over Machine £4,000M Sales £1,000M Materials Handling Sales £500M Power Systems Rental of Plant Sales & Machinery £400M £1,530M Rental of Tools £740M * Excludes Parts & Service Opportunity Source: Internal Marketing 2003
Slide 12: Opportunities and Routes to Market
Opportunities and Routes to Market Prospects can be identified by market segmentation Customers that do not deal with other group channels (Current) Customers (Potential) Construction & * Telecom / Wholesale Agriculture Building Finance Manufacturing Mining Retail Services Utilities Trade Products R
Slide 13: Opportunities and Routes to Market
Opportunities and Routes to Market A large number of market segments are driven by the economy through the demands and needs of the population Finning/Hewden, with its multiple routes to market, is able to tailor solutions to meet the needs of our customers
Slide 14: Efficiency, Effectiveness & Simplicity – “Mission UK”
Efficiency, Effectiveness & Simplicity – “Mission UK” Hewden (the rental channel) $23 - $25 mm Customer Facing, Business Support, IT Futures Materials Handling (lift truck sales & rental channel) ~ $2 mm Lex Harvey synergies and customer opportunities Finning UK (the machine sales channel)
Slide 15: “Mission UK” – 1 Team
“Mission UK” Hewden - three solid strategies to realize the potential of the business 1 Team Materials Handling - fully integrate the business Finning UK - CAT PINS growth Result: Increases our ability to capture future opportunities Leverages our footprint and coverage A simple struct