Finning International Inc. · TSX:FTT

Finning International — Q4 2021 Earnings Presentation

12 slides from Finning International's earnings presentation, Feb 9, 2022

  1. Slide 1: Q4 and Annual 2021 Results

    Q4 and Annual 2021 Results Scott Thomson President and CEO Greg Palaschuk EVP and CFO February 9, 2022 See slides 10 and 11 for important information on forward-looking information, currency, and specified financial measures, including non- GAAP financial measures

  2. Slide 2: 2021 Highlights

    2021 Highlights Revenue Recovery >$2.00 EPS ROIC Expansion Strong Balance Sheet Net Revenue(1)(2) Basic EPS Adjusted EPS(1) Adjusted ROIC(1) Net Debt / Adjusted EBITDA(1) 16% $2.26 $2.18 16.4% 1.1 2021 vs 2020 2021 Q4 2021 Q4 2021 Improved market activity Solid gross profit margins Revenue recovery

  3. Slide 3: Q4 2021 Results

    Q4 2021 Results vs Q4 2020 (Adjusted) (2) Q4 2021 Summary Net Revenue  Strong market activity across all regions and sectors $1.8B 14 %  Product support recovered to 2019 levels; improved product support activity and capital spending by Canadian customers  Strong execution of used and rental stra

  4. Slide 4: Net Revenue

    Q4 2021 Net Revenue Net Revenue by Line of Business $ Millions Q4 2021 Revenue Drivers 105 6 1,774 31 19  Product support revenue increased by 12% from Q4 2020, up in all 62 regions and across all sectors 1,551 211  Higher new equipment sales driven by mining deliveries in Chile and strong constru

  5. Slide 5: EBITDA

    Q4 2021 EBITDA EBITDA Q4 2021 EBITDA Drivers $ Millions  Increase in gross profit driven by higher net revenue, higher rental 76 (3) (3) 241 utilization, and improved equipment margins  SG&A as % of net revenue(1) of 18.5% down 240 basis points from Q4 2020  Fixed cost reduction initiatives conti

  6. Slide 6: Q4 2021 Results – Canada

    Q4 2021 Results – Canada Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 13.7% 16.5% 15.5% 20.0% 16.9% 15.3% 914 142 15.0% 16.0% 132 150 10.0% 771 805 106 12.0% 10.5% 5.0% 0.0% 100 -5.0% -10.0% 8.0% -15.0% 50 -20.0% 4.0%

  7. Slide 7: Q4 2021 Results – South America

    Q4 2021 Results – South America Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 700 638 12.2% 12.5% 14.0% 20.0% 15.0% 20.3% 582 19.0% 600 100 81 10.0% 80 496 5.0% 500 61 12.9% 75 0.0% -5.0% 400 50 -10.0% -15.0% 300 25 -20.0% -25.0%

  8. Slide 8: Q4 2021 Results – UK & Ireland

    Q4 2021 Results – UK & Ireland Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 9.0% 8.3% 7.0% 14.9% 40 305 16.0% 14.8% 284 10.0% 278 5.0% 27 32 23 12.0% 0.0% 20 24 -5.0% 8.0% -10.0% 16 -15.0% 5.5% 8 4.0% -20.0% -25.0% 0 0.0% -30.0%

  9. Slide 9: 2022 Key Themes: Upcycle and Shift to Growth

    2022 Key Themes(1) Upcycle and Shift to Growth Positive Market Drive Product Support Reduce Costs Reinvest to Compound Backdrop Product support revenue growth Continued demonstration of Mid-teens & above EPS growth Sustained Upcycle, 2021 Base strong operating leverage Sustained Upcycle, 2021 Base >

  10. Slide 10: 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

  11. Slide 11: Disclosures

    Disclosures Currency Monetary amounts referred to in this presentation are in Canadian dollars unless noted otherwise. All variances and ratios in this presentation are based on the functional currency of each operation (Canada: CAD, South America: USD, UK & Ireland: GBP). These variances and ratios

  12. Slide 12: 2022 Schedule

    2022 Schedule All dates and times are preliminary and subject to change Release Date Investor Call Time Quarter Investor Call Date after market close Eastern Q1 2022 May 9, 2022 May 10, 2022 10:00 AM Q2 2022 August 2, 2022 August 3, 2022 10:00 AM Q3 2022 November 7, 2022 November 8, 2022 10:00 AM Q4

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