Finning International Inc. · TSX:FTT
Finning International — Investor Day (December 2004)
23 slides from Finning International's investor day presentation, Dec 14, 2004
Slide 1: Investor Day: Moving Closer to Our Customer
Investor Day December 14, 2004 MOVING CLOSER TO OUR CUSTOMER Brian Sherlock Director Operations
Slide 2: Presentation Overview
Presentation Overview Profile of Hewden Markets & competitors ‘One Hewden’ review of key initiatives 2005 & medium-term outlook
Slide 3: Hewden Profile
Hewden Profile Europe’s largest equipment rental and associated services operation Scotland Key sectors: ‘Build, Maintain & Repair’ Construction, Glasgow Engineering, Petro-Chemical, Employees: approx. 3,700 Approx. 360 Service Delivery Locations: approx. 360 Points Nationwide 2003 Revenue
Slide 4: Hewden Today
Hewden Today 11 businesses 6 operating companies Approx. 360 outlets 8 management structures Over 3,700 employees
Slide 5: Primary Customer Requirements
Primary Customer Requirements Availability Reliability Proactive contact
Slide 6: How Do We Move Closer to Our Customer?
How Do We Move Closer to Our Customer? We asked ourselves: Who should our customers be? What product do they require? How do we best serve them?
Slide 7: Customer Loyalty
Customer Loyalty We asked our customers: Based on your experiences with your main Hewden division, how likely are you to rent equipment from us in the future? 88% responded “we will rent from Hewden” 100% 80% 60% 54% 40% 34% 20% 10% 1% 1% 0% Definitely will Probably will Might or might Probably
Slide 8: Preferred Rental Company
Preferred Rental Company We asked potential and current customers: Based on your general perception, which of the following companies do you believe to be the best supplier of rental equipment? 58% of customers responded “Hewden is our best supplier” 0.8 58% 0.6 0.4 17% 0.2 10% 5% 5% 3% 2% 2% 0
Slide 9: Satisfaction and Loyalty Drivers
Satisfaction and Loyalty Drivers We asked customers to differentiate the performance of a rental provider that would influence their satisfaction and loyalty Our customers established The Hewden response is to the primary criteria for develop a clear strategy: renting as: Relationship management
Slide 10: Output by Market Segment
Output by Market Segment 9,700 Projects with a value of over £100K awarded with a project value of approx. £38,000M in 2004 YTD 2,800 Projects with a value of less than £100K awarded with a project value of approx. £15,000M (house building sector) in 2004 YTD The balance of construction output
Slide 11: Competitive Position
Competitive Position Competitor Tools Plant Access Hoists Accomm Cranes Services A-Plant HSS Speedy VP GE Capital GAP Ainscough Nationwide Market Hewden 2* 1 2 1 2 2 1 Position No other single competitor offers all the Hewden ranges. ‘One Hewden’ is the opportunity to create a sustainable competitiv
Slide 12: Who Should Our Customers Be?
Who Should Our Customers Be? The professional user who… Builds Maintains …not the retail consumer Repairs
Slide 13: What Product Do Our Customers Require?
What Product Do Our Customers Require? Core Offer - Integrated Rental Centre & Rental Store Supporting Product - Selected Rental Centres Specialist Lifting - Selected Rental Centres
Slide 14: How Do We Best Serve Our Customers? The 'One Hewden' Journey
How Do We Best Serve Our Customers? The ‘One Hewden’ Journey Tomorrow Today Rental Centre & Rental Store = Hub & Spoke
Slide 15: How Do We Move Closer to Our Customers
How Do We Move Closer to Our Customers Hewden Network Think national, act local 100,000 transactions per day 98% UK Population - delivered within 2 hours from Rental Centre 86% UK Population - delivered within 1 hour from Rental Centre 86% UK Population - within 30 min drive of Network Enhanced logi
Slide 16: The Voice of Our Customer
The Voice of Our Customer Richard Thorpe Project Director Mace, RBS World Headquarters, Edinburgh, Scotland
Slide 17: Business Support Activity
Business Support Activity The Business Support Project will enable Hewden to: Create one single recognised trading company Establish one set of commercial terms and controls for our customer Merge ledgers to facilitate a common IT platform Redesign the organization and manage the transition
Slide 18: IT Futures Activity
IT Futures Activity The objective of IT Futures is to deliver an approved IT solution to meet the needs of our customers and the business Including a robust business case, vendor selection and implementation plan Customer / Business Requirements System Solution Selection IT Futures Implementatio
Slide 19: Mitigating Risk Throughout the Process
Mitigating Risk Throughout the Process Customer Survey CAT, ISO9001 and TARP McKinsey (Validation) Customer Facing Project Collinson Grant (Implementation) Collinson Grant Business Support Project (Validation and Implementation) IT Futures Project IT Consulting Partner Project Management Office Acce
Slide 20: We Will Move From: Current Business Processes & Systems
We Will Move From: Current Business Processes & Systems Customer phones Hewden 100,000 items on hire daily Manual capture 2 depot systems Availability and price checks 150,000 invoices per month Maintenance planning and 6 ledgers allocation of equipment Manual logistics planning =
Slide 21: We Will Move To: Future Business Processes & Systems
We Will Move To: Future Business Processes & Systems ‘One Hewden’ built to grow Flatter, leaner, simpler structures Rental centres & rental stores that “think national – act local” Lowest cost per transaction IT system Efficiency, effectiveness simplicity in processes Proactive contact moving closer
Slide 22: 2005 & Medium-Term Opportunity
2005 & Medium-Term Opportunity The impact on EBIT as we create ‘One Hewden’: MOVEMENT ACTIVITY OPPORTUNITY +1% Utilization Physical product (approx. £3M) +1% Rental rates Pricing (approx. £2M) +1% Hire revenue Market share (approx. £2M) +1% Rental margin Cost reduction (approx. £3M)
Slide 23: Medium Term Outlook
Medium Term Outlook Internal co-operation Maximizing opportunities 2004 Single point of contact 2005 One-stop shop Market leading delivery Single invoicing 2006 Leveraging Finning/Hewden Business Relationships ‘One Team’