Finning International Inc. · TSX:FTT
Finning International — Non-Deal Roadshow (June 2013)
13 slides from Finning International's roadshow presentation, Jun 26, 2013
Slide 1: Finning Canada Investor Tour: Oil Sands
Finning Canada Investor Tour Oil Sands Brent Davis, VP, Oil Sands June 26, 2013
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
Slide 3: Finning Oil Sands Locations
Finning Oil Sands Locations Athabasca River Imperial Fort Hills Oil Energy Shell CNRL Fort McKay Syncrude Exxon Mobil Service Facility Total E&P Shell/Albian Shell Syncrude 2 warehouses Fort McKay Syncrude Syncrude Mildred Lake Branch Suncor Fort McMurray Suncor Town Shop Branch Power Systems Branch
Slide 4: Oil Sands Revenue Growth
Oil Sands Revenue Growth Oil Sands Revenue Product Support New Equipment $ 2005 2006 2007 2008 2009 2010 2011 2012 Total revenue 2012: ~$1 billion 7-year CAGR (2005 to 2012) ~17% 4
Slide 5: 797 Population Growth
797 Population Growth 797 Population in Oil Sands at Year-End 300 250 250 200 150 100 50 10 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 5
Slide 6: 1st 797 – 100,000 Hours
2) pee > 2) < =) =) i) - 100, 1St 797
Slide 7: Oil Sands Product Support
Oil Sands Product Support ~1,100 regional employees, including ~550 mechanics and apprentices 5 branches, including new Fort McKay service facility 4 parts warehouses (Mildred Lake, Fort McMurray, 2 at Shell/Albian) Parts distribution center (Edmonton) OEM - component remanufacturing facility (Edmon
Slide 8: Fort McKay – Game Changer
Fort McKay – Game Changer Key stats 16 bays; 160,000 sq. ft. $110M investment: 2011 and 2012 Operational in Q4 2012; 24 x 7 in January 2013 ~120 employees Repair and maintenance facility Supports contractors and producers Regional training centre Capacity to rebuild 797 trucks Ramping up on plan 8
Slide 9: Operational Excellence
Operational Excellence Driving velocity, process, technology Velocity - capacity planning and equipment scheduling Bay scheduler – efficient planning Warehouse – staging, not stocking – parts as required Process - Caterpillar Production System (CPS) – make it visual Lean and operational efficiency I
Slide 10: Challenges
Challenges Level of commodity prices for new mines and expansions Customers focused on cost containment Pricing differential - pipeline capacity Environmental concerns Attracting and retaining technical labour 10
Slide 11: Building for the Future
Building for the Future Keyano FinnTech Program Customized Heavy Equipment Technician apprenticeship program (CAT, Finning, Keyano) $3.5M investment from CAT and Finning Launched in Feb 2012 Will graduate up to 48 2nd year apprentices per year First graduate class - end of 2013 11
Slide 12: Opportunities
Opportunities Significant product support opportunity Large and well-utilized equipment population Aging fleets drive demand for component remanufacturing and rebuild Expanded mining product line Equipment opportunity Future fleet replacement – 797’s 100,000 hours Future mine expansions and new proj
Slide 13: Priorities
Priorities Deliver superior customer service Drive efficiency and productivity Attract and retain technicians Capture product support opportunities 13
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