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 Tom McCloy Divisional Director Finning Materials Handling
Slide 2: Materials Handling - Outlook
Materials Handling - Outlook Profile of the operation Key business drivers and competitive advantages Markets and competitors Business opportunities, growth, review of key initiatives 2005 and medium-term outlook
Slide 3: Materials Handling Profile
Materials Handling Profile Market leader in materials handling solutions Long-standing business of 20 years Sole UK importer/distributor of Caterpillar Lift Trucks Direct sales/rental focus on medium/large/national customers Finning sub-dealer network throughout UK selling to small custome
Slide 4: Materials Handling Profile
Materials Handling Profile Finning (UK) Ltd. 30% 55% 15% Materials Construction Power Handling Equipment Systems $322M revenue 650 mechanics 10,000 customer base 15,000 rental machines 1,200 employees 14,000 customer owned machines
Slide 5: Competitive Advantages
Competitive Advantages Caterpillar Brand Service Focus One New, Used and STR Market Engineer Coverage Leading Parts Logistics Solutions Contract Rental Provider Dealer Network Extensive Aftermarket
Slide 6: Competitive Advantages
Competitive Advantages Customer focus – 75% of employees customer facing One point contact for strategic & national accounts Simple management structure Centralized business support Driving towards low cost transaction business Cross and up-sell opportunities Leverage of the Hewden/Fin
Slide 7: Market Overview
Market Overview Large/growing market – mirrors the general economy Size – 30,500 units per annum Focus on “rental” Changing market – product differentiation and brand loyalty now less important Value sensitive Considerable consolidation at manufacturing level Interesting new trends – i
Slide 8: Market Overview
Market Overview Warehouse Equipment Counterbalance Equipment 13,000 units 17,500 units
Slide 9: UK Materials Handling Market Units & PINS
UK Materials Handling Market Units & PINS 35,000 30,500 30,000 30,000 29,466 30,000 27,210 27,299 25,766 25,000 24,016 20,000 15,000 10,000 5,000 - 1999 2000 2001 2002 2003 2004F 2005F 2006F Warehouse Counterbalance Total
Slide 10: Markets & Competitors: Changing Times in Our Industry
Markets & Competitors Changing Times in Our Industry Rapid consolidation in the 80’s and 90’s World players down from 16 to 5 Multiple brands/ multiple channels Possible further consolidation
Slide 11: Growth Opportunities
Growth Opportunities Distribution of complementary products Major and international accounts – 1% PINS = £4.5M revenue Used equipment – European dimension Focus on cost-effective coverage (inside sales) Drive to increase “share of wallet” from existing customers CRM initiatives – maximiz
Slide 12: Review of Key Initiatives
Review of Key Initiatives Customers Focus on major and national accounts Providing service excellence Leveraging CRM to improve performance Operational effectiveness Ongoing synergies from Lex integration – £1M in 2005 More efficient management structure Improved productivity – mechanic
Slide 13: 2005 Outlook
2005 Outlook Large, growing and relatively low risk market Growing PINS and profitability 2005 – a year of consolidation Complete integration of Lex Harvey Priority on high-margin activities Improving efficiency, controlling costs, employee engagement Improved asset management
Slide 14: Medium Term Outlook
Medium Term Outlook 2006 will provide: A fully-integrated business A platform for stronger growth Greater opportunities for improved profitability Winners will have lean structure, economies of scale and offer “one-stop-shop” service excellence Ongoing consolidation in the UK distributio