Finning International (FTT) Investor Presentation summary

Business overview and market position

• Operates as the largest Caterpillar dealer across Canada, South America, UK, and Ireland, with a diversified customer base and product mix.

• Maintains a large installed base of equipment and employs approximately 14,900 people as of December 2023.

• Achieved a market capitalization of $5.2B and a share price of $37.24 as of September 2024.

• Holds investment-grade credit ratings (BBB+/BBB high) and has grown dividends for 23 consecutive years.

• Core market segments include mining, construction, forestry, and industrial services.

Financial performance and key metrics

• Q2 2024 trailing twelve months (TTM) revenue reached $10.9B, with net revenue at $9.8B.

• Adjusted EBIT for the period was $914M, with adjusted EPS of $3.88 and an 18.5% adjusted ROIC.

• Product support accounted for 55% of net revenue, with mining representing 51% of market segment revenue.

• Delivered record EPS and free cash flow for Q2 2024, with $330M in free cash flow.

• Product support revenue CAGR was 14% from Q2 2022 to Q2 2024.

Strategic priorities and execution

• Focuses on driving product support, fostering a strong workplace, and empowering employees to build customer loyalty.

• Pursues full cycle resilience through disciplined execution, cost flexibility, and capital efficiency.

• Targets sustainable growth by expanding in used equipment, rental, and power systems markets.

• Implements continuous improvement initiatives to lower fixed overhead and increase working capital velocity.

• Plans to reduce SG&A as a percentage of net revenue and improve capital turns.