Finning International Inc. · TSX:FTT
Finning International — Investor Presentation (December 2022)
14 slides from Finning International's investor presentation, Dec 1, 2022
Slide 1: Investor Presentation
Investor Presentation Kevin Parkes Juan Pablo Amar Greg Palaschuk President and CEO President, Finning South America EVP and CFO Montreal, Toronto November 30 – December 1, 2022 See slides 13 and 14 for important information on forward-looking information, currency, and specified financial measures,
Slide 2: Finning Overview
Finning Overview Canada South America UK & Ireland Largest Caterpillar dealer Market Statistics(1) - FTT (TSX) Share price 32.45 Bolivia Unrivalled service for nearly 90 years YT NU Market Cap 5.0B NWT S&P/DBRS rating BBB+/high Annual dividend / share 0.93 Diversified by geography, customer ba
Slide 3: Strong Execution and Continued Market Momentum Drove Record Results
Strong Execution and Continued Market Momentum Drove Record Results Drive Product Support Reduce Costs Reinvest to Compound Product support SG&A as a % of revenue Q3 2022 vs Q3 2021 30 % net revenue (1) Q3 2022 16.7 % EPS LTM Q3 2022 $3.01 Leadership Position in Technologically Advanced Projects Sig
Slide 4: Supporting Customers in a Dynamic Business Environment
Supporting Customers in a Dynamic Business Environment Overall demand conditions remain healthy Record backlog underpinning a strong start to 2023 Encouraging Supportive commodity prices and improved Record Large, diverse, and high-quality backlog supports new market capital build are driving cu
Slide 5: Q3 2022 Net Revenue
Q3 2022 Net Revenue Net Revenue by Line of Business All comparisons are to Q3 2021 results unless indicated otherwise $ Millions 277 10 2,107 Q3 2022 Revenue Drivers New equipment sales up 8%, driven by mining deliveries in Canada 48 13 11 and construction deliveries in the UK, including HS2 1,748
Slide 6: Q3 2022 EBIT
Q3 2022 EBIT All comparisons are to Q3 2021 results unless indicated otherwise EBIT $ Millions Q3 2022 EBIT Drivers 116 (42) Gross profit up 25% driven by net revenue growth and a higher proportion of product support in the revenue mix 224 SG&A increase of 13% reflects workforce additions and hi
Slide 7: South America Overview
South America Overview Finning South America – High Quality, High Return Business High proportion of contracted product support Early learner and positioning for the energy transition Technical Workforce (3) Strong investment grade customers Strong copper fundamentals and growth potential (1
Slide 8: Strong Copper Fundamentals and Significant Mining Investment Potential
Strong Copper Fundamentals and Significant Mining Investment Potential Chile Copper Production and Capital Investment Projections (1)(2) Chile copper production Projects Capital Investment 9.0 growth accelerating (2021 - 2030) (2021 – 2030) 8.0 7.0 7.2 7.6 7.4 3.2% 5.7 5.6 CAGR (2021-2030) Million T
Slide 9: Strengthening Competitive Position in Mining
Strengthening Competitive Position in Mining (1) Largest award in Finning’s history further expands CAT mining equipment population and market share Step-function improvement in ESCONDIDA BHP’s operational excellence Increased material-moving capacity (2) CAT 798 AC electric drive truck Current ul
Slide 10: Q3 2022 Results – South America
Q3 2022 Results – South America Net Revenue EBIT Return on Invested Capital $ Millions $ Millions, as % of Net Revenue 4 Quarter Average 800 692 22.7% 12.3% 20.0% 638 637 10.1% 20.3% 9.2% 120 19.0% 600 90 85 10.0% 64 0.0% 58 400 60 -10.0% 30 -20.0% 200 0 -30.0% Q3 2021 Q2 2022 Q3 2022 Q3 2021 Q2 202
Slide 11: Q3 2022 Results – Canada
Q3 2022 Results – Canada Net Revenue EBIT Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 1,072 20.0% 18.2% 1,013 16.9% 20.0% 200 10.4% 11.7% 10.0% 15.3% 805 15.0% 10.0% 150 125 0.0% 102 10.0% 100 84 -10.0% 50 -20.0% 5.0% 0 -30.0% 0.0% Q3 2021 Q2 202
Slide 12: Q3 2022 Results – UK & Ireland
Q3 2022 Results – UK & Ireland Net Revenue EBIT Return on Invested Capital $ Millions $ Millions, as % of Net Revenue 4 Quarter Average 354 343 18.0% 16.6% 5.6% 6.4% 6.2% 14.9% 305 14.8% 10.0% 40 5.0% 12.0% 0.0% 30 23 21 -5.0% 20 17 -10.0% 6.0% -15.0% -20.0% 10 -25.0% Q3 2021 Q2 2022 Q3 2022 0 0.0%
Slide 13: 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
Slide 14: 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
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