Finning International Inc. · TSX:FTT
Finning International — TD Securities Engineering & Construction Conference 2019
10 slides from Finning International's conference presentation, Mar 28, 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION Scott Thomson, President and CEO Mauk Breukels,VP Investor Relations TD Securities Engineering & Construction Conference March 28, 2019
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 23.56 Unrivalled service for over 85 years Market Cap 3.9B Diversified customer base S&P/DBRS rating Annual dividend / share BBB(+/high) 0.80 ~13,200 employees Dividend yield 3.4% Financial Statistics -
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: Improved Financial Performance
Improved Financial Performance SG&A as Percentage of Revenue (%) 24% 22.7% 22% 20.3% EARNINGS 20% 19.0% TORQUE Adjusted ROIC(1) 18% 20% 18.1% 16.2% 15.0% 16% 14.2% 15% 13.2% 12.2% (2) 12.8% 2016 2017 2018 9.3% 10% Working Capital to Sales Ratio (%) 5.9% 32% 5% 30.4% 30% 0% CAPITAL Canada South Ameri
Slide 6: Positive Free Cash Flow Through the Cycle
Positive Free Cash Flow Through the Cycle $ millions 2013 2014 2015 2016 2017 2018 Adjusted EBITDA(1) 737 749 604 465 577 633 Net capital expenditures (74) (63) (54) (70) (118) (182) Rental additions (291) (264) (231) (170) (307) (306) Free cash flow 441 483 325 370 165 78 Free cash flow conversion
Slide 7: Investor Value Proposition
Investor Value Proposition Revenue growth GROWTH OPPORTUNITIES - Expect low-growth environment in 2019 Infrastructure investment (e.g. LNG) Canada Product support, including rebuilds Autonomy adoption Improved ROIC Mining equipment replacement South - Earnings torque Chile infrastructure investment
Slide 8: Capital Allocation
Capital Allocation Cumulative Capital Allocation – 2013 to 2018 Cumulative Free Cash Flow(1) – 2013 to 2018 ($ millions) 3,000 560 Share repurchases Dividends Acquisitions(2) 2,500 425 2,000 ~$1.9 B 240 Retained cash 725 1,500 Debt repayment Reinvested in the business 1,000 $1,225 M 200 400 500 Retu
Slide 9: Appendix
APPENDIX
Slide 10: Finning Acquired 4Refuel – Canadian Leader in Mobile On-Site Fuel Management Services
Finning Acquired 4Refuel – Canadian Leader in Mobile On-Site Fuel Management Services Business Highlights Meaningful Synergies 2018E Net Revenue(1) 2018E EBITDA Sale of mobile on-site refueling service to Finning’s customers millions millions Sale of equipment, product support, and rental to 4Re
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