Finning International Inc. · TSX:FTT

Finning International — CIBC Whistler Institutional Investor Conference 2018

15 slides from Finning International's conference presentation, Jan 25, 2018

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION Scott Thomson, President and CEO Mauk Breukels,VP Investor Relations CIBC Whistler Institutional Investor Conference January 25, 2018

  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  Largest Caterpillar dealer Market Statistics(1) - FTT (TSX)  Unrivalled service for 85 years Share price 33.99 Market Cap 5.7B  Diversified customer base S&P/DBRS rating BBB(+/high) Annual dividend / share 0.76  ~12,500 employees Dividend yield 2.2% Financial Statistics - YTD 2

  4. Slide 4: Strategic Direction

    Strategic Direction PURPOSE We believe in partnering and innovating to build and power a better world VISION Leveraging our global expertise and insight, we are a trusted partner in transforming our customers’ performance Page 4

  5. Slide 5: Value Proposition

    Value Proposition  Significant operating leverage on increased revenue Adjusted ROIC(1) 18% 16.4% 15.6%  Working capital efficiency improvements 15% 13.7% 12.3% 12%  Innovative customer solutions 8.7% 9%  Higher return on invested capital 6% 3.4% 3% 0% Canada South America UK & Ireland Q3 2016 Q

  6. Slide 6: Equipment Supply Chain Transformation

    Equipment Supply Chain Transformation Simplify Reduce Improve accuracy quoting, sales, Improve Forecast Sales NEP(1) Invoice invoice to and planning and attachment execution cash cycle processes Days of Inventory (1) New equipment preparation New Equipment Inventory ($m) New Equipment Turns (times)

  7. Slide 7: Free Cash Flow Delivery

    Free Cash Flow Delivery  Investment to capture market growth Free Cash Flow ($ millions)  Rental fleet optimization 550  Investment in long-term strategic initiatives 500 483  Digital capabilities 450 441  Autonomous and electric drive large mining vehicles 400 370  Dividends 350 325  6% CAGR

  8. Slide 8: Innovate – Digital Strategy

    Innovate – Digital Strategy Customer Benefits  Valuable insights and visibility  Increased fleet uptime  Lower owning and operating costs  Improved equipment performance  Omni-channel choice Finning Opportunities  Deeper customer and market insights  Additional revenue growth opportunities 

  9. Slide 9: E-Commerce: Omni-Channel Choice

    E-Commerce: Omni-Channel Choice E-COMMERCE - Parts(1) Benefits Customer Parts Share(2) 11 points  Cost savings - customer and Finning Transaction Cost  Analytics - improved visibility into customer needs  Customer loyalty (1) Caterpillar study covering 11,700 e-commerce and integrated procurement

  10. Slide 10: Connected Assets

    Connected Assets Insights drive improved equipment performance, market visibility, and lower costs Connected Assets Projections Estimated % of addressable population(3) 100% 80% 60% Drive Enable Parts Share(1) Performance 40% Solutions ~10 points(2) 20% (1) Parts purchases from Finning as a percenta

  11. Slide 11: Appendix

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  12. Slide 12: Talent – Strengthened Leadership Team

    Talent – Strengthened Leadership Team (1) Employees in Green 9-Box (%) Women in Leadership Roles (%) 100% 30% 26% 79% 77% 77% 25% 80% 22% 70% 20% 66% 19% 20% 60% 56% 48% 51% 15% 12% 40% 10% 7% 20% 5% 0% 0% Canada UK & Ireland South America Consolidated Canada(2) UK & Ireland South America 2014 2017

  13. Slide 13: Parts Supply Chain Improvement

    Parts Supply Chain Improvement Parts Inventory ($ millions) Parts Turns (times) 750 3.8 3.6 700 3.4 3.2 650 3.0 2.8 600 2.6 2.4 550 2.2 500 2.0 2013 2014 2015 2016 Q3 2017 2013 2014 2015 2016 Q3 2017 Key Improvement Drivers From 2013 to Q3 2017  Centralized inventory management Parts Turns 0.7 time

  14. Slide 14: Performance Solutions

    Performance Solutions Revenue Growth Predictive analytics drive improved CAGR (2013 – 2016) maintenance and increased productivity Technology to maximize machine productivity on ~15 % job sites CASE STUDY UK - Large Quarrying Customer Performance Metrics Customer Benefits Key Data & Services Custome

  15. Slide 15: Investor Presentation

    INVESTOR PRESENTATION Scott Thomson, President and CEO Mauk Breukels,VP Investor Relations CIBC Whistler Institutional Investor Conference January 25, 2018

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