Finning International Inc. · TSX:FTT
Finning International — Investor Presentation (February 2020)
11 slides from Finning International's investor presentation, Feb 19, 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION Scott Thomson, President and CEO, Finning International Amanda Hobson, SVP Investor Relations and Treasury, Finning International Montreal, Toronto February 19-20, 2020
Slide 2: 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 management believes are reasonable as of the date of this presentation, but may ul
Slide 3: Finning Overview
Finning Overview Largest Caterpillar dealer Market Statistics(1) - FTT (TSX) Share price 21.37 Unrivalled service since 1933 Market Cap 3.5B Diversified customer base S&P/DBRS rating BBB(+/high) Annual dividend / share 0.82 ~13,200 employees Dividend yield 3.8% 2019 Financial Statistics(2) N
Slide 4: Strategic Framework
Strategic Framework PURPOSE VISION VALUES We believe in partnering and Leveraging our global expertise and We are trusted innovating to build and power insight, we are a trusted partner in We are collaborative a better world. transforming our customers’ performance. We are innovative We are passiona
Slide 5: Strategic Focus Areas
Strategic Focus Areas CAPTURE GROWTH Ultra-class mining vehicles - autonomy, electric drive Lead Mining Integrated Knowledge Centres (IKCs) Mining fleet replacement Market Share Customer Strong alignment with Caterpillar Loyalty Grow Construction Customer Value Agreements (CVAs) Product Su
Slide 6: Canada – Improved Performance
Finning Canada – Improved Performance Controlling the controllables through a low amplitude up-cycle (1) Canada’s Financial Performance – 2017 through 2019 Net revenue CAGR(3) 13% Adjusted SG&A as % of net revenue(2) 260 bps Adjusted EBIT as % of net revenue(2) 70 bps IC Turnover(2) 4Refuel acquisit
Slide 7: Canada - Growth Opportunities
Finning Canada - Growth Opportunities KEY GROWTH DRIVERS Significant Infrastructure Opportunities Infrastructure Opportunities Location Project Name Investment (C$B) Markets Mining Fleet Replacement Kitimat, BC LNG Canada ~40 Power Systems Opportunities Alberta / British Columbia Trans Mountain Pipe
Slide 8: South America – Focused on Improving Results
Finning South America – Focused on Improving Results Close ROIC gap with Canada and generate sustainable returns reflective of risk profile Potential Macro-Economic Catalysts Performance Drivers US-China trade Sustained copper price New leadership resolution recovery Social stability in Chile GDP gr
Slide 9: Controlling the Controllables
Controlling the Controllables GROWTH OPPORTUNITIES Profit Drivers Infrastructure investment (e.g. LNG, TMX) Improved execution in South America Reduced cost base in Canada CANADA Product support (e.g. IKC1, rebuilds, CVAs2) Improving business confidence in the UK Autonomy adoption Lower fina
Slide 10: Capital Allocation
Capital Allocation Cumulative Capital Allocation – 2013 through 2019 Cumulative Free Cash Flow – 2013 through 2019 ($ millions) 3,500 Debt repayment 710 Dividends Retained cash & other 3,000 2,500 510 Share repurchases $1.9 B 2,000 860 Acquisitions Reinvested 1,500 in the business $1,220M 230 1,000
Slide 11: Autonomy
Finning Autonomy 20%+ Productivity Improvement vs Imperial Oil Conventional Fleet Kearl (oil sands) SCALABLE ~100 trucks and 250+ auxiliary 797F vs limited from competition Fleet Size 12 trucks As at Jan 2020 INTEROPERABLE with conventional and competitors’ fleets Teck Highland Valley Copper (Cana
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