Finning International Inc. · TSX:FTT

Finning International — Q4 2020 Earnings Presentation

14 slides from Finning International's earnings presentation, Feb 10, 2021

  1. Slide 1: Q4 2020 Results

    Q4 2020 RESULTS Scott Thomson, President and CEO Greg Palaschuk, EVP and CFO February 10, 2021 See slides 12 & 13 for important information on forward-looking information and non-GAAP financial measures in this presentation

  2. Slide 2: Focus on Safety, Technology, and Sustainability

    Focus on Safety, Technology, and Sustainability 2020 Performance Highlights Total Incident Frequency Customer Loyalty Market Share Sustainability GHG 35% 10% Construction Parts Emissions 2020 vs 2019 2020 vs 2019 Canada (2020 vs 2019) From 2017 baseline Technology Investments Set the Stage for Recov

  3. Slide 3: Executing to Meet Commitments

    Executing to Meet Commitments EBIT as % of Improved execution Net Revenue(1)  Restructuring completed: 2020 SG&A down 13% from 2019 and profitability in Q4 2020  Leveraging one common technology platform South America 8.3 %  Argentina returned to profitability SG&A 2020 vs 2019  Workforce down 1

  4. Slide 4: Improved Earnings Capacity in a Recovery

    Improved Earnings Capacity in a Recovery 2021 Considerations  2021 outlook remains positive, led by strong recovery in Chile and UK, and improvements in order intake(1) and backlog  Expect revenue growth in 2021, however remaining below 2019 levels  On track to deliver more than $100 million of a

  5. Slide 5: Q4 2020 Results

    Q4 2020 Results vs Q4 2019 Key Drivers Q4 2020 Financial Statistics ($ Millions) Net Revenue(1)  Higher revenue in Revenue 1,666 EBITDA 185 UK & Ireland $1.6B 12 %  Reduced activity in Net Revenue 1,551 Net Income 72 Canada and South America EBIT 108 Basic EPS $0.45 Q4 2020 vs Q3 2020 Adjusted EBI

  6. Slide 6: Q4 2020 Net Revenue

    Q4 2020 Net Revenue Net Revenue by Line of Business $ Millions Key Revenue Drivers 1,757 (149)  Reduced capital budgets in Canada impacted new equipment sales (6) (6) (45)  South America revenue slightly below Q4 2019 0 1,551  UK & Ireland new equipment sales were up 18% from Q4 2019 in functiona

  7. Slide 7: Q4 2020 Adjusted EBITDA

    Q4 2020 Adjusted EBITDA Adjusted EBITDA $ Millions Q4 2020 Highlights 170 (8) 12 (3) 171  Operational improvements and revenue mix shift to product support supported gross profit  Cost savings were partly offset by higher LTIP(2) expense; share price up 33% in Q4 2020  Labour productivity impacte

  8. Slide 8: Q4 2020 Financial Results – Canada

    Q4 2020 Financial Results – Canada Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted(1), 4 Quarter Average 14.6% 13.7% 20.0% 11.8% 968 150 15.0% 10.0% 14.4% 771 114 728 106 106 5.0% 100 0.0% 10.8% 10.5% -5.0% -10.0% -15.0% 50 -20.0% -25.0% 0

  9. Slide 9: Q4 2020 Financial Results – South America

    Q4 2020 Financial Results – South America Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 20.0% 12.2% 12.2% 12.9% 518 10.0% 15.0% 496 75 11.3% 479 61 10.0% 10.5% 59 5.0% 51 0.0% 50 -5.0% -10.0% -15.0% 25 -20.0% -25.0% 0 -

  10. Slide 10: Q4 2020 Financial Results – UK & Ireland

    Q4 2020 Financial Results – UK & Ireland Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 7.9% 7.0% 284 5.4% 10.0% 271 12.1% 236 5.0% 24 20 18 0.0% 16 15 -5.0% -10.0% 5.5% -15.0% 3.9% 8 -20.0% -25.0% 0 -30.0% Q4 2019 Q3 20

  11. Slide 11: Free Cash Flow, Balance Sheet, Capital Allocation

    Free Cash Flow, Balance Sheet, Capital Allocation Net Debt to Adjusted EBITDA (Ratio) 2020 Highlights 3.5  Improved working capital management 3.0 2.8 2.6  Inventory turns(1) up 10% vs 2019 2.5 2.5  2020 net capex and rental fleet spend ~$100 million 2.2 2.1 2.0  Well positioned to make strategi

  12. Slide 12: 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

  13. Slide 13: Disclosures

    Disclosures Non-GAAP financial measures This presentation includes certain “non-GAAP financial measures”, which are called out the first time they are used. The non-GAAP financial measures do not have a standardized meaning under International Financial Reporting Standards (IFRS) and therefore may n

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