Finning International Inc. · TSX:FTT

Finning International — Investor Presentation (September 2016)

9 slides from Finning International's investor presentation, Sep 13, 2016

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION Scott Thomson, President and CEO Mauk Breukels, VP Investor Relations Toronto, Montreal September 13-15, 2016

  2. Slide 2: Forward Looking Information

    Forward Looking Information This report contains statements about the Company’s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what the Company knows and expects today to make a s

  3. Slide 3: Finning Overview

    Finning Overview  World’s largest Caterpillar dealer - selling, renting and providing Market Statistics(1) parts and service for Caterpillar equipment and engines Ticker FTT (TSX)  Serving customers for over 80 years and delivering value to Share price 23.52 public shareholders for over 45 years %

  4. Slide 4: Compelling Value Proposition

    Compelling Value Proposition Great products and resilient business model  Aligned with Caterpillar – world’s best heavy equipment company  Operating in regions with significant long-term growth opportunities  Serving diversified customer base  Relatively stable product support business Positione

  5. Slide 5: Canada

    Canada Positioned for improved results Reduced cost structure driving improved profitability  Fixed SG&A costs(1) down 20% in 2016 from 2014 - costs savings expected to meaningfully exceed $150 million  Expect to exit 2016 with EBIT margin in the 6-7% range Weak markets, but product support resili

  6. Slide 6: South America

    South America Solid execution in challenging environment Chile  Mining product support under pressure  Reduced copper production  Lower equipment utilization - fleets are parked  Delay of maintenance and major repairs  Construction activity remains weak Argentina  Positive changes by the new g

  7. Slide 7: UK & Ireland

    UK & Ireland Transforming the business model to reduce costs and improve service Optimizing facility network UK Facility Optimization 2015 - 2016  Centralizing parts order and distribution points  Consolidating new equipment preparation Footprint  ~40%  Strengthening field service operations  C

  8. Slide 8: Strong Free Cash Flow

    Strong Free Cash Flow Healthy balance sheet provides financial flexibility Free Cash Flow $ millions 2012 2013 2014 2015 H1 2016 $1,343M (2013 – YTD2016) EBITDA(1) 701 737 720 126 173 Adjusted EBITDA(1) 701 737 749 604 229 ~35% Inventory Net rental expenditures (93) (73) (35) (24) 35 ~65% reduction

  9. Slide 9: Key Takeaways

    Key Takeaways  Restructuring completed in all regions, assuming stable commodity prices  Canada well positioned for improved profitability  South America delivering solid performance despite continued market weakness  UK business transformation to drive improved results in second half of 2016 

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