Finning International Inc. · TSX:FTT

Finning International — Investor Day (December 2004)

18 slides from Finning International's investor day presentation, Dec 14, 2004

  1. Slide 1: Investor Day: Moving Closer to Our Customer

    Investor Day December 14, 2004 MOVING CLOSER TO OUR CUSTOMER Neil Dickinson Managing Director Finning (UK)

  2. Slide 2: Agenda

    Agenda ƒ Profile of UK dealership ƒ 2004 operational highlights ƒ laying the foundations ƒ Market outlook ƒ Markets and competition ƒ 2005 outlook ƒ Customer focus ƒ Critical issues

  3. Slide 3: Finning (UK)

    Finning (UK) ƒ 1,250 employees ƒ $805M revenue Muir Of Ord ƒ 22 branches Scotland Aberdeen ƒ National brand Perth Glasgow Construction market Volume Value Birtley channel channel Leeds Heavy Mining, England & general quarrying Liverpool Chesterfield construction & waste Winsford Cannock Leicester $1

  4. Slide 4: 2004 Operational Highlights: Laying the Foundations

    2004 Operational Highlights Laying the Foundations Commenced CAT/Booz Allen business model revision study Commissioned branded Undertook TARP customer experience customer survey work Introduced new DBSi Launched inside sales Commenced integration CRM capability team - £5M revenue of Lex Harvey follo

  5. Slide 5: Operational Highlights

    Operational Highlights ƒ Secured £174M new contracts to Sept. ƒ Q3 ‘04 reported strongest level of new orders since Q1 2003 ƒ Improved parts & service final quarter sales through “Big Push” program 2004 Backlog by Month Order B\log Estimated £55M Oct £68M Dec £70,000 £60,000 £50,000 £40,000 £000's £

  6. Slide 6: Market Outlook - Key Business Drivers

    Market Outlook - Key Business Drivers ƒ Continuing consolidation in industry ƒ Value focus – “Service Solutions” is the key differentiator ƒ Growth in smaller machine market ƒ Dominated by sell to rent (plant hire) channel ƒ Supported by economic conditions and government infrastructure spending ƒ 6

  7. Slide 7: Transport Spending to 2015

    Billion (£) 4.5 6.5 8.5 10.5 12.5 14.5 16.5 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 Transport Spend 2001-02 2002-03 2003-04 BNRR 2001: 109 CAT units, £13M revenue 2004-05 2005-06 Spending Review 2006-07 Transport Spending to 2015 2007-08 2008-09 2009-10 2010-11 Innovation Fund 2011

  8. Slide 8: Market Growth

    Market Growth COMPETITIVE MARKET Unit Sales 25,000 20,000 15,000 Units 10,000 5,000 0 1998 1999 2000 2001 2002 2003 2004 YEE

  9. Slide 9: Competition

    FINNING Competition CASE Komatsu TEREX (2: CONSTRUCTION NZ Ya wB KOBELCO LIEBHERR anu ue “SS HI | pay Hl EVOLVING w=4)

  10. Slide 10: UK Construction Industry - Segmentation

    UK Construction Industry - Segmentation Mining trucks Heavy Small Compact Zero 5,407 12,270 10,966 Total industry unit sales = 28,643

  11. Slide 11: UK Construction Industry - Segmentation

    UK Construction Industry - Segmentation 29% of Ind Market 5% of Mining is Plant Hire Market is Plant Hire £37 £21 £68 £31 62% of HC Market 78% of GC Market is Plant Hire is Plant Hire £173 General Construction Waste 9% of Q&A Market is Plant Hire Mining £68 £602 Quarry & Agg. Industrial Heavy Const.

  12. Slide 12: CAT Commitment: Medium Term Volume Targets

    CAT Commitment Medium Term Volume Targets Unit Sales 6,000 5,000 4,000 Units 3,000 2,000 1,000 0 2003 2004 2005 2006 2007

  13. Slide 13: Market Overview - Power Systems

    Market Overview - Power Systems Diverse markets ƒ Electric power generation ƒ Total packaged solutions… engines, controls, building ƒ Marine contracts (value added) ƒ Wider CAT product range in ƒ Industrial pleasure craft - 4 key accounts ƒ Renewables ƒ Strong competition in all We represent all CAT

  14. Slide 14: Power Systems - Market Split

    Power Systems - Market Split Petroleum 7% Gas 22% Industrial / OEM 19% Pleasurecraft 22% Diesel 24% Commercial Marine 6% Total market opportunity £400M

  15. Slide 15: Cost Savings Initiative: $60 million by '06

    Cost Savings Initiative “$60 million by ’06” ƒ Focus on costs ƒ Reduced working capital by $70M ƒ Downsizing CRC operations ƒ Restructuring in construction equipment division ƒ Lex Harvey integration savings ƒ Seven identified Six Sigma projects ƒ $2.26M included in ‘05 Plan Beginning Jan 1 2005 200

  16. Slide 16: 2005 Outlook

    2005 Outlook ƒ Build the foundations in 2004 ƒ Generally favourable economic environment ƒ Restructure organization to focus more effectively on core markets ƒ “$60 million by ‘06” cost savings ƒ Leverage DBSi CRM capabilities and cost efficiencies ƒ Six Sigma Umbrella Project: CAT commitment ƒ Full

  17. Slide 17: Critical Issues

    Critical Issues Initiatives Customer Respond to customer survey focus “Moving closer to our customer” Business Profitable market share growth growth “Harvest” machine population growth CAT Six Sigma umbrella project commitment Long-term strategies in place Build to leadership position DBSi Ensure DB

  18. Slide 18: Leveraging the 4 Channels

    Moving Closer To Our Customer Customer ‘One-Team, 4 Channels’ Leveraging the 4 channels Service expertise CAT commitment Segmentation & understanding Foundation building 2004

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