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INVESTOR MEETING
Vancouver
May 10, 2018
Agenda
10:00 Welcome and Introduction Mauk Breukels, VP Investor Relations
10:05 Strategic Plan Scott Thomson, President & CEO
10:25 People Chad Hiley, CHRO
10:30 Finning Digital Dave Cummings, EVP & CIO
10:50 South America Marcello Marchese, President, Finning South America
11:10 Canada Juan Carlos Villegas, President, Finning Canada
11:30 Break
11:45 UK & Ireland Kevin Parkes, Managing Director, Finning UK & Ireland
11:55 Global Supply Chain Steve Nielsen, EVP & CFO
12:05 Financial Performance Steve Nielsen, EVP & CFO
12:15 Closing Remarks Scott Thomson, President & CEO
12:20 Q&A
Monetary amounts are in Canadian dollars and from continuing operations unless noted otherwise2
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
ultimately turn out to be incorrect.
Wherever possible, words such as “anticipate”, “believe”, “expect”, “intend”, “project”, “plan”, “forecast”, “opportunity”, “target”,
“potential” and similar words, as well as any number or year followed by “E” (which stands for “estimated”) have been used to
identify these forward-looking statements. Information in this presentation has been furnished for information only and is accurate at
the time of presentation on May 10, 2018, but may later be superseded by more current information. Except as required by law,
Finning does not undertake any obligation to update the information, whether as a result of new facts becoming known, future events
occurring or otherwise.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of Finning to be materially different from any future results, performance or achievements expressed or
implied by the forward-looking information in this presentation. Important information identifying and describing such risks,
uncertainties and other factors is contained in Finning’s most recently filed annual information form (under the headings “Forward-
Looking Information” and “Key Business Risks”) and in the management’s discussion and analysis of financial results (MD&A) portions
of Finning’s most recent annual and quarterly financial reports (under the headings “Risk Factors and Management” and “Forward-
Looking Disclaimer”). These documents may be accessed on the Finning website at www.finning.com (in the financial reports section
on the Investors page) or the SEDAR website at www.sedar.com.
Non-GAAP financial measures
This presentation includes the following “non-GAAP financial measures”: “equipment backlog”, “inventory turns” and “ROIC” (return
on invested capital). These financial metrics do not have a standardized meaning under International Financial Reporting Standards
(IFRS) or Generally Accepted Accounting Principles (GAAP), and therefore may not be comparable to similar measures presented by
other issuers. For additional information regarding these financial metrics, including definitions and reconciliations from each of these
non-GAAP financial measures to their most directly comparable measure under GAAP, where available, see the heading “Description
of Non-GAAP Financial Measures and Reconciliations” in our most recent MD&A. Management believes that providing certain non-
GAAP financial measures provides users of the Company’s consolidated financial statements with important information regarding the
operational performance and related trends of the Company's business. By considering these measures in combination with the
comparable IFRS measures set out in the MD&A, management believes that users are provided a better overall understanding of the
Company's business and its financial performance during the relevant period than if they simply considered the IFRS measures alone.
3
STRATEGIC PLAN
INVESTOR MEETING
Vancouver, May 10, 2018
Scott Thomson, President and CEO
SUPPLY CHAIN
Improved Performance
EARNINGS
TORQUE
CAPITAL
EFFICIENCIES
2017 ROIC and FCF
Safety and Employee Engagement Customer Loyalty
Cost Control
Operational Efficiency
Supply Chain
Improvements
Outstanding Safety
Performance
Stronger Employee
EngagementContinued
Improvement
2013 to 2017
points
2013 – 2017 Achievements
14
SERVICE
EXCELLENCE
ASSET UTILIZATION
MARKET
LEADERSHIP
Parts and equipment
turns improvement
Canada service EBIT
Canada, UK & Ireland
Core equipment and
parts market share
5
The Future - Megatrends
A Shift in Resource
Supply and DemandIndustry 4.0
Data & Insights
Driving Value
C2BNew Competitive
Landscape
A New
Societal Deal
Opportunities to
enhance customer
intimacy
Sustainable operations and
stakeholder value creation
Emerging market demand
with secure supply
Digitally enabled lean Smart Iron increasingly
important
Customer centricity
critical
6
The Future – Macro-Economic Trends
Finning Region Macro-Economic Trends Infrastructure Spending (2018-2020)
WESTERN CANADA
Oil sands – product support focus
Construction, power systems,
other mining – robust growth
C$55 billion
CHILE Copper mining recovery
Improved business confidenceUS$12 billion
ARGENTINA Improved investment climate
Political risks remainUS$20 billion
UK & IRELAND Digital business
Stable economy£95 billion
PROJECTED OPPORTUNITY - 1.7 bcf/d
2019-2026
LNG Canada - $40 billion investment
~300 Gas
Compression
Prime and
Standby
Power
Well
ServiceEngines
~$300M Engines + Product Support
Vaca Muerta
US$7bnINVESTMENT
2018-2021
Source: BNA
Source: GI Hub
7
bcf/d – billion cubic feet per day
PURPOSE
We believe in partnering and
innovating to build and power
a better world.
VISIONLeveraging our global expertise and
insight, we are a trusted partner in
transforming our customers’ performance.
VALUESWe are trusted
We are collaborative
We are innovative
We are passionate
Strategic Framework
Customer Centricity
Lean & Agile Global Finning
Global Supply Chain
Digital Enterprise
Growth and Diversification
GLOBAL STRATEGIC PRIORITIES
8
ERP
Data Driven
Decision
Making
Investment Aligned with 2018-2020 Priorities
CAT
Complementary
M&A
Global
Supply Chain
• Forecast to Cash
• Centralized
Procurement
Ultra-Class
Mining
Vehicles
• Autonomy
• Electric Drive
RUN
Strategy
CUSTOMER
CENTRICITY
DIGITAL
ENTERPRISELEAN & AGILE SUPPLY CHAIN
GROWTH &
DIVERSIFICATION
Asset Light
Footprint
Disciplined
Processes
Omni-Channel
e-commerce
Connected
Assets
Performance
Solutions
RUN - Rental, Used, New
Product Support
• Condition Monitoring
• Data-driven Lead
Generation
• Rebuild Opportunities
• Customer Support
Agreements
• Integrated Knowledge
Centre
Data and
Analytics
9
Strong Alignment with Caterpillar
FOUNDATION
ROICOPACC
Exceptional
Customer Experience
Connectivity & Digital as
Product Support Drivers
Operational
Excellence
Safety / Talent / Sustainability
10
0.99
0.36
2013 2018 Mar YTD
Safe, Talented and Inclusive Team
Executive Office Candidates Women on Board of Directors
SAFETY
TALENT INCLUSION
Total Recordable Injury Frequency (TRIF)
2014 2018
1 42014 2018
1 4
11
Execution Velocity – Global Leverage
New operating model
5 YEARS AGO 2018 FORWARD
Shared
ServicesFinning
Canada
Finning
South
America
Finning
Digital
FinningInternationalFinning
UK & Ireland
Finning
UK &
Ireland
Finning
International
Finning
South
America
Finning
Canada
12
Value Creation
Outcomes
Transformed
Customer Experience
Sustainable Product
Support Growth
Improved Operating and
Financial Performance
Attractive Opportunities
to Grow and Diversify
13
PEOPLE
INVESTOR MEETING
Vancouver, May 10, 2018
Chad Hiley, Chief Human Resources Officer
76
3
1
2014 2015 2016 2017
Talent – Strengthened and Diversified Leadership Team
Number of Recruited Executives
Women in Leadership Roles (%)
3 year plan to develop leaders at all levels in the
organization with over 1,300 leaders to participate
Employee Engagement Highlights 2017
20 19
7
2623
13
Canada UK & Ireland South America
2014 2017
15
Broadening Safety and Sustainability
TRIF TIF Widening the parameters of an injury with
the goal of preventing future incidents
Attention to leading indicators – hazard
identifications and near misses
Relentless focus on significant incidents
Safety
+ Employee Health
+ Environment
+ Inclusive Workforce
+ Community Investment
SUSTAINABILITY
TRIF: Canada Saskatchewan
0.94 0.880.56
6.4
2.1
0
2015 2016 2017
TRIF – Total Recordable Incident Frequency (recordable incidents per 200,000 hours)
TIF – Total Incident Frequency (incidents per 200,000 hours)
16
FINNING DIGITAL
INVESTOR MEETING
Vancouver, May 10, 2018
Dave Cummings, EVP Digital and Technology
85YEARS
12,500EMPLOYEES
BUILT ON KNOWLEDGE & EXPERIENCE OF
Digital investment focused on strengthening the
differentiators of our existing business
Combination of Finning and new digital capabilities creates value
18
Value Growth Enabled by Technology
Value
Driver
Machine
Reliability
Robust product
and reliable parts
and service
network
Machine
Productivity
Equipment and
operator
performance
monitoring
Fleet
Productivity
Fleet-wide
visibility of assets
Network
Optimization
Analysis of large
data volumes,
customer insight
Enabler Quality design
and service
Onboard
technologies
Low-cost sensors
and wireless
Analytics and
Artificial
Intelligence
Status Mature Proven & growing Early adoption Emerging
Differentiators and role of digital and technology in equipment industry have changed over time
19
OUR PRIORITIES:
Improving Customer Performance
Use data to improve parts and service process
Integrating data, equipment and customer knowledge
Generating insights to deliver customer performance solutions
Enhancing the Customer Experience
Integrating physical & digital channels
Increasing B2B purchase and fulfillment options
Greater visibility and transparency on stock and delivery times
Creating Internal Value
Analytic sciences to create internal efficiency insights
Data to insights for timely and improved decision making
Digital innovation to reinvent our processes
Improved working capital efficiency and profitability
Creating Value for Customers and Generating Internal Efficiency and Profitability
Value Priorities
20
Investing in Talent
37%Gender Diversity
70%External Hires
AMAZON • AMEC • BUILD DIRECT • TRIMBLE • CAT • HOOTSUITE • GE DIGITAL •
MICROSOFT • PWC • SAMSUNG • SCHNEIDER ELECTRIC • SHAW •
SIERRA WIRELESS • TECK • TELUS • TOSHIBA • BC HYDRO •
VANCITY • VISION CRITICAL
12 Languages
35%Ethnic Diversity
20% Spanish
30%Finning Expertise
Performing well above gender
diversity rates in the technology
and industrial sectors
Talent sourced from tech,
industrial and other sectors
where digital expertise exists
Our team diversity reflects our
international presence and
customer base
18Nationalities
Built a tightly integrated team of experts with industry sector, geography, ethnic and gender diversity
Finning brings domain expertise (i.e. equipment, market and customer
expertise) as a critical ingredient in our overall team make-up
21
Finning Cloud - Analytics
Apps &
Services
Customer Experience Platform
Connecting Equipment
IntegratedProcurement
eCommerce
GLOBALIZING AND MODERNIZING DIGITAL CAPABILITIES & IT INFRASTRUCTURE
Condition
Monitoring
Data Sources
CRM
HumanCapital Management
ERP
Digital Quoting
Core Business Systems Customer Relationship Omni-Channel Connected Eco-System
Supply chain
Analytics Services & APIsData Assets Analytics Models
Customer Segmentation IoT Sensors
Performance
SolutionsDigital
Finning
Invested in foundation of traditional information technology and digital capabilities
Investing in Technology
22
Path to Demonstrable Growth
0
50
100
150
2015 2016 2017 2018E 2019E
Performance Solutions Revenue (CAD$M)
0%
40%
80%
2015 2016 2017 2018E 2019E
Connected Assets % of addressable population
DRIVE PARTS CHANNEL SHIFTVolume Online
LIFT CHANNEL Capabilities
DRIFT UPCustomer Share
GET CONNECTEDNew & Retrofit (Cat and non-Cat)
EXPANDServices
DELIVER INSIGHTSData and Domain Driven
PARTNERDeliver Outcomes
ADVISE ON PERFORMANCEAnalyze & Recommend
INFORM ON PERFORMANCEVisibility and Monitoring
Parts and Service Digital Commerce
Equipment Connectivity
Performance Solutions
0.0%
15.0%
30.0%
2015 2016 2017 2018E 2019E
Online Parts % of addressable opportunity
Over last three years we have invested in digital – and grown the key value performance metrics significantly
0
5
10
15
20
25
30
35
40
45
50
2016 2017 2018E 2019E
Digital Investment (CAD$M)
BUILD DIGITAL ASSETS“On the Edge” Talent, Connectivity
INTERNAL VALUE FOCUSImprove Core Processes
MARKET FOCUSPerformance Solutions
Digital Investments
Success Based Funding
23
Digital Performance
2017 Year End Trajectory
Global Finning Cloud Implemented
50
25%*
employees who registered
Parts.Cat.ComDeployed in All Regions
+270%Increase in Retro-fit
Connections
23Web Sites
Consolidated37%
Gender Diversity
+$85mYoY B2B Commerce Online Revenue
Growth (new and channel shift)
~ $150mOnline LeadGeneration
(2017)
+50%Performance Solutions Revenue
45%YoY growth in Parts Online
Global BusinessDiverse and Talented Digital Team
42%Connected Cat Assets
(year end 2017)
1
24
SOUTH AMERICA
INVESTOR MEETING
Vancouver, May 10, 2018
Marcello Marchese, President, Finning South America
CUSTOMER PRIORITIES
Chile and Argentina Infrastructure Opportunities
EASY TO DO BUSINESS WITHCOMPETITIVE &
INNOVATIVE SOLUTIONS
Improved business confidence with new
government
Governmental plan for infrastructure and
highway development
Infrastructure investments expected to grow
Public Private Partnerships plan launched by
government – US$17 billion in 60 key projects
75% expected to be invested between 2018-2022
Road Infrastructure Investment Chile
Source: Chilean Chamber of Construction
Road Infrastructure Investment Argentina
0
2
4
6
8
10
12
2013-2017 2018-2022
US$ billion
Source: Argentina Government PPP program
0
2
4
6
8
10
12
14
2013-2017 2018-2022
US$ billion
26
CUSTOMER PRIORITIES
Argentina – Oil & Gas Activity Accelerates
INTEGRAL SERVICESEXPERTISE & CAPABILITIES
# Wells Forecast in Argentina
0
500
1000
1500
2000
2500
2017 2018 2019 2020 2021 2022
Num
ber
of W
ells
Source: Argentina Chamber of Construction
Conventional Shale Tight
US$7bn
INVESTMENT
2018-2021 Source: BNA
US$340M opportunity
for Finning
Finning well positioned:
infrastructure &
capabilities investments
27
Capturing Product Support Growth Opportunities
0
13
18
23
0
5
10
15
20
25
Not connected Add
Connectivity
Add CSA Add
Performance
Solutions
Current equipment population with CSAs 12%
Contract renewal rate 66%
New equipment sales with CSAs 47%
Number of CSAs at Dec 2016 4,500
Number of CSAs at Dec 2017 5,600
CSAs (customer support agreements) and Performance Solutions
Increase POPs (parts sales as a percentage of total parts opportunity)
Improve customer satisfaction
Have large impact in construction markets
South America Construction CSA Opportunity South America Construction POPs
basis points
28
Capturing Product Support Growth Opportunities
Leads and sales management process improvements using advanced technology
Condition monitoring
Digital and marketing automation
Lead Generation Tool – in early phase of implementation
Positive impact on product support growth
Lead Management Process2017 Results
Product Support
Sales Representative
19%
42%
Lead Generation Tool
Leads Assigned in CRM
5,090 Signals
985
Opportunities
413
Sales
Identification & qualification
Inside Sales
Representative
80
90
100
110
120
2014 2015 2016 2017 2018E
Construction Product Support RevenueUS$ indexed to 100 in 2014
29
Key Growth Drivers
0
100
200
300
400
Dec-16 Dec-17 Mar-18
South America Equipment Backlog US$ million
South America
Revenue
Q1 2018
Mining
60%
Construction
29%
Power Systems
9%
Rental
2%
Copper Mining Recovery
Ultra-Class Truck
Underground Mining
Product Support Growth
Lead Generation Tool & CSAs
Integrated Knowledge Centre
Infrastructure and
Oil & Gas Opportunities
Business friendly governments
30
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
New Projects
Chile – Mining Recovery
Declining ore grades create underground opportunities
Better investment climate
Better copper prices
Existing Projects
New Projects
Chile Copper Production (base scenario)
Source: Cochilco 2017 Report
Replacement & Expansion
Projects
Ton (thousand) fine copper
Over US$12bn underground projects under construction
Copper Production & Chile Product Support Revenue
Cu
2016 2017
#39 #8Fraser Institute Mining Investment
Attractiveness Index – Chile Ranking
31
4.5
5.0
5.5
6.0
6.5
300
500
700
900
1,100
1,300
1,500
2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E
Product Support Revenue Copper Production
US$ million Ton (million) fine copper
Copper production source: Cochilco 2017 Report, Alumbrera annual production
REACTIVE ACTIVE ANTICIPATE
Product Support Operational Performance
• From transaction to value-add
• Data driven information: technology and autonomy
• Improved equipment reliability and availability
• Optimized performance: lowest cost per ton
• Improved productivity: highest tons per hour
5 31 30
55
2018E 2019E 2020E
Brownfield Greenfield
Positioned to Capture Growth in Mining
Predictive Maintenance
+Mining Expertise
=Superior Results
DELIVERABLES
Ultra Class Opportunity
(est.) (>300 tons)
32
Integrated Knowledge Centre
33
Integrated Knowledge Centre (IKC)Reduces Cost and Improves Productivity/Safety for Mining Customers
Benefits
Data Driven
Insights and Actions
Innovative Integrated
Process Models and
Technologies
CUSTOMER
CENTRICITY
DIGITAL
ENTERPRISE
Additional 797Caterpillar
Orders
5-30% 3-7pts
Truck Availability
Improvements
Cost/Ton
Reductions
Operations
Best Practices
Product
Improvement
Maintenance
Best Practices
34
Caterpillar 794 AC Electric Drive Truck Advantage
Best in Class Equipment & Operational Support to Reduce Cost per Ton
BIGGER PAYLOAD
FASTERSuperior braking & control
SAFER
FUEL EFFICIENT
SERVICEABILITYModular design; Parts commonality with mechanical drive; All caterpillar components
EXCELLENT PHYSICALAVAILABILITY
2018 Chile Investment:
Population
12 operating
8 new
20 trucks
Number of customers 5
Hours accumulated 180,000
Highest truck hours 33,000
Availability >90%
COMPETITIVE
ADVANTAGE
Experience To Date – Americas
trucks4
tons320
35
CANADA
INVESTOR MEETING
Vancouver, May 10, 2018
Juan Carlos Villegas, President, Finning Canada
CUSTOMER
CENTRICITY
Caterpillar Autonomy Solution
Superior Technology / Over 20% Productivity Improvement
ADVANCED FLEET
PRODUCTION SYSTEM
FASTERthan manned & competition
SCALABLE~100 trucks vs. 30 from competition
250+ auxiliary vs. 30 from competition
AUTOMATED FUELINGnot available from competition
RETROFIT CAPABILITY TODAYCaterpillar 793 F and 797 F;
Komatsu 930-E4 DYNAMIC ASSIGNMENT
TECHNOLOGYsuperior to fixed assignment technology
INTEROPERABLEwith manned & competitive fleets
SAFETY
Eliminate operator fatigue, distraction & training issues
Absolute control on truck path and speed
Object detection system
PRODUCTIVITY
Flexibility – work within existing operations
Capacity – smart trucks
Interoperability
Something for Every Mine Trend to autonomy:
REMOTE
CONTROL
AUTONOMOUS
AUTO
ASSIST
SEMI-
AUTONOMOUS
37
Caterpillar Autonomous Truck
313
31
55
76
114
0
50
100
150
200
250
2012 2013 2014 2015 2016 2017 2018 E
* Competition 115 Trucks
Material moved (tons) 700M+
Distance driven (kilometer) 25M+
Lost time injuries zero
Truck population 55
Support equipment population 100+
Productivity improvement vs. manned fleet >20%
200+
Caterpillar Global Autonomous Truck Population
6Customers
7Sites
Caterpillar
supporting
3 Customers
6Sites
Largest global
autonomous population
by end of 2018 Competition
supporting
Fortescue Solomon World’s Largest
CAT Supported Autonomous Mine
CAT Autonomous Truck
2013-2017
*
38
Finning Autonomy Trials
Underground Autonomous
Copper – El Teniente R1600H
HAULING
UNDERGROUND
DOZING
Finning – South America
Oil Sands – Imperial Oil 797F D11
Copper – Teck 793F D10
Steelmaking Coal – Teck D11
Finning – Canada
remote control dozer
39
Mining Pivoting to Growth
Total Mining
Equipment Population 7,500
310797 Population
Average Age (years) 9
Rebuild
Forecast(2019 vs 2018)
3x
+110%
Mining
market size
(units)
Market share
Product
support
Service
profitability
0
10
20
30
40
50
60
70
80
Total - Original Total - Rebuilt
5 6 7 8 9 10 11 12 13 14 15
797 Population by Age and Rebuilds
2018 vs 2017
Original
Age
Rebuilt
# of trucks
40
Participation and share
Parts revenue
Service profitability
Industry growth in all provinces
Construction Continues to Rebound in 2018
2013 2014 2015 2016 2017 2018E
Service EBIT %
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2013 2014 2015 2016 2017 2018E
Market Size
units
0%
41
38%
46%53%
59% 57%63%
0%
10%
20%
30%
40%
50%
60%
70%
2013 2014 2015 2016 2017 2018 F
Participation
2018 E
Key Growth Drivers
Grow RUN sales using
data-driven insights
Leverage connectivity to
drive insights and
parts share
Transform retail
experience for
the mid-market
0
300
600
900
Dec-16 Dec-17 Mar-18
Canada Equipment Backlog $ million
Canada Revenue
Q1 2018
Oil Sands
35%
Coal & Metals Mining
25%
Construction
24%
Power Systems
12%
Rental
3%
RUN - Rental Used New
42
Canada From To
Caterpillar % of fleet 40% 60%+
Line items ~1,000 ~500
Targeted machine life 5 years 3 years
Machine specification:
rent vs saleVaried Identical
Rental Transformation - RUN
Highlights
Flexible options
for customers
Revenue realization –
everything for sale
Rental integrated
into dealership
Maximized rental ROIC
throughout the cycle
NEW< 3 months
USED> 36 months
RENTAL1-36 months
Adds from inventory
Primary source of used
inventory (60%+)
Retail sale at peak residual value
6%3% 30%
Overall margin
improvement with
higher mix of rental
and used sales
Maximize asset value
with ex-rentals for
used sales
+30%
RATES
+6%
UTILIZATION
43
2017 vs 2016
Grow New Equipment Sales Using Data-Driven Insights
Analytics are driving market
knowledge and team behaviors
New sales quoting tool, processes and
reporting ensure margin control
Coverage of existing and new customers
Active measurement of participation and
equipment availability
Lower cost sales channels (online, inside sales)
Investing in new relationships based on
shovel ready and future projects
Sales teams focused on region and industry
44
Leverage Connectivity to Deliver Insights and Parts Share
Significant opportunity to capture parts market share with mid-size customer
Finning has 2 x share with largest customers vs. mid-tier customers
Connectivity
Customer Support
Agreements Ease
Condition
Monitoring
Cat Digital
Inspection
SOS
History
Repair
Quote
Match CSA to
segment needs
Standard on new
machines
Revenue from connected
assets up 2.5 times (Q1/18 vs Q1/17)
Digital tools for
transparency and trust
Growing online parts
sales (+23% in 2017)
Q1/17 Q1/18
183%
Retrofits
45
Transform Retail Experience for Mid-Market
Offer flexible options for customers across RUN needs (Rental, Used, New)
Customer-centric retail experience, integrating RUN into locations
Freeing up service capacity to support mid-market
Increasing rental and used inventory to provide flexible options at multiple price points
Consolidated Used Supply
Consistent service standards
Standardized repair options
New delivery model pilots
Pop-ups
Small trucks
Increase % in-field
Used Retail Centre,
Edmonton - May 2018
Consolidated inventory of
used machines
Demonstration area
Service Capacity for Mid-Market
46
Reduced Cost Structure
2014 - 2016 CANADA
Annual savings $150M
Workforce(1) 21%
Facility footprint 25%
Fixed SG&A(2) 22%
(1) Excluding Saskatchewan operations acquired in 2015
(2) Adjusted for significant items, excluding Saskatchewan operations.
Please refer to 2017 MD&A for an explanation of significant items
Maintaining Cost Discipline
50
75
100
125
150
2013 2014 2015 2016 2017
Increased Absorption Rates (%)
Absorption rate is calculated as product support gross profit divided
by total SG&A costs
47
UK & IRELAND
INVESTOR MEETING
Vancouver, May 10, 2018
Kevin Parkes, Managing Director, Finning UK & Ireland
UK Market Evolution: Shift from Mining to Core
Opportunity
90km section
Self delivery model
Circa 700 core assets
3 year time line
Value for advice
£500bn Infrastructure Opportunity
Energy Water Transportation Other
HS2
Heathrow
Expansion
23
7
0
20
40
60
80
2014 2018E
Mining Parts % of parts revenue
48
59
2014 2018E
Core Parts% of parts revenue
HS2 is the Largest Rail Project in the UK
75
80
85
90
95
100
105
2014 2015 2016 2017 2018E
Parts Revenue Recovered Since Mining
Collapse (£M indexed to 100 in 2014)
49
Lean & Agile Business Model
>6
Parts Turns
>5
New Equipment
Turns
Maintain Working Capital Discipline
through growth cycle
Sustainable Fixed Cost Reduction
through geographic consolidation and
business line leverage
Closed
Location
20% reduction in
non-service
employees
Aged Inventory
<5%
Invested Capital Turnover
Working Capital to Sales Ratio
Improved Inventory Management
REVENUE
Less product
support in
the mix
SG&A
Reduced cost structure maintains profitability on
lower margin revenue stream
EBIT
Driven by
lower cost
structure
Successfully Repositioned for Profitability
E
E
50
Investing in New Capabilities
Performance Solutions
Margin expansion through value added services
Retail Transformation
Easier to do business, lower cost to serve
OMNI CHANNEL DEVELOPMENT
RETAIL AND ONLINE EXPERIENCE
FOR MACHINES AND GENERATORS
51
Connectivity Enables Lean & Agile Service Model
Non Productive Travel Time
Safety Observations
Customer Experience NPS
Product Support Market Share
ConnectPerformance
SolutionsCSA
Connected Formatted Network
Workforce Management
Connected Engineers
Standard Repair Options
Connected Customers
70%13%
SG&A
12%
1 2 3 4 5
RRR
RRR
RRR
RRR
RR
RR
RR
RR
RR
R
R
R
R
R
R
RR
R
Connected
Vehicles
52
GLOBAL SUPPLY CHAIN
INVESTOR MEETING
Vancouver, May 10, 2018
Steve Nielsen, EVP and CFO
3.0
3.2
3.4
3.6
3.8
4.0
4.2
2013 2017 Potential 2015 2017 2015 2017 2015 2017
Canada South America UK & Ireland
Improvements - New Equipment
500
550
600
650
700
750
800
2013 2017
Equipment Supply Chain Improvements
Lower Inventory($ millions)
Key Performance Drivers
End-to-End
Process Improvement
Improved Demand and
Supply Planning
Advanced Technology in
Key Processes
3.6
~600
Increased Inventory Turns(X times)
Shorter End-to-End Cycles (days)
23%
0.4x
37%
12%
16%
↑ 0.1 turns ~$20M FCF
0.5x
4.1
54
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
4.0
4.2
2013 2017 Potential 2014 2017 2014 2017 2014 2017
Canada South America UK & Ireland
Parts Supply Chain Improvements
500
550
600
650
700
750
2013 2017
~6503.5
Key Performance Drivers
Improved
Inventory Management
Reduced Network Routes
and Touches
Increased Direct Shipments
to Customers
Improvements - Parts
Lower Inventory($ millions)
Increased Inventory Turns(X times)
Increased Customer Loyalty(net promoter score)
11%
15%13%
10%
0.8x
↑ 0.1 turns ~$20M FCF
0.5x4.0
55
Transformed and Globally Leveraged Supply Chain
Global Supply Chain
design puts the customer at
the centre of our business
and focuses on enhancing
their experience across all
channels
Drives Significant Competitive Advantage
Data Driven
Planning
Efficient
Working
Capital
Leverage
Volume and
Scalability
Talent,
Processes and
Technology
56
Supply Chain Benefits Align With Global Strategic Priorities
Customer
Delivery OptionsCustomer Life Cycle
Management
Leverage Global Buying
Power
Global Supplier
Performance
Lower
Cost to Serve
Improve Value for
Cost Proposal
Customer
Centricity
Lean and Agile
Global Finning
Digital
Enterprise
Priorities
1. Equipment Supply
Chain Velocity
Canada UK & Ireland South America
In Progress 2019Complete
2. E-Commerce
Capabilities
3. Strategic
Procurement
Current indirect spend
Annual savings potential
$1B
5%
57
FINANCIAL PERFORMANCE
INVESTOR MEETING
Vancouver, May 10, 2018
Steve Nielsen, EVP and CFO
Investor Value Proposition
Revenue Growth
Directionally consistent with previous upcycles; key growth drivers provide upside
Earnings Torque
Leverage of incremental revenue on fixed cost
Capital Efficiencies
Supply chain improvements and capital discipline
KEY GROWTH DRIVERS
Markets
Infrastructure Opportunities
Copper Mining Outsized Growth
Power Systems
Product
Support
Customer Support Agreements
Digital / E-Commerce
Lead Generation Tool
Rebuilds
Integrated Knowledge Centre(s)
Caterpillar
/ Finning
Ultra-Class Mining Vehicles
Autonomy
Life Cycle Value Machines
Underground
RUN
Complementary Acquisitions
RUN - rental, used, new equipment
59
Earnings Torque
$6.8B
~23%
$6.3B
Business Transformation
Overhead reduction
Facility optimization
Supply chain efficiencies - parts
Cost discipline
Revenue Decline
Lower Cost to Serve
Digital / e-commerce
ERP in South America
Global procurement
Performance insights
Supply chain efficiencies - equipment
Revenue Growth
Reduced SG&A Costs as Percentage of Revenue – Lower Fixed Cost Base
SG&A costs
as % revenue
2013
~20%
2017
~18%
Target
Revenue
60
Financial Objectives – Canada
ROIC Potential
Takeaways
Positive outlook for key industries
Mid-market product support growth
Leading autonomy solution
Rental transformation
Revenue GrowthKEY GROWTH DRIVERS
Markets
Infrastructure Opportunities
Copper Mining Outsized Growth
Power Systems
Product
Support
Customer Support Agreements
Digital / E-Commerce
Lead Generation Tool
Rebuilds
Integrated Knowledge Centre(s)
Caterpillar
/ Finning
Ultra-Class Mining Vehicles
Autonomy
Life Cycle Value Machines
Underground
RUN
RUN - rental, used, new equipment
9.5% 19% 20% 21% 22%
9.0% 18% 19% 20% 21%
8.5% 17% 18% 19% 20%
8.0% 16% 17% 18% 18%
7.5% 15% 16% 17% 17%
2.0 2.1 2.2 2.3
EBIT
Mar
gin
IC Turnover
61
Financial Objectives – South America
ROIC Potential
Takeaways
Chilean copper mining recovery
Significant ultra-class truck opportunity
Product support growth through Integrated
Knowledge Centre and Lead Generation Tool
Underground mining opportunity
Revenue GrowthKEY GROWTH DRIVERS
Markets
Infrastructure Opportunities
Copper Mining Outsized Growth
Power Systems
Product
Support
Customer Support Agreements
Digital / E-Commerce
Lead Generation Tool
Rebuilds
Integrated Knowledge Centre(s)
Caterpillar
/ Finning
Ultra-Class Mining Vehicles
Autonomy
Life Cycle Value Machines
Underground
RUN
10.0% 20% 21% 22% 23%
9.5% 19% 20% 21% 22%
9.0% 18% 19% 20% 21%
8.5% 17% 18% 19% 20%
2.0 2.1 2.2 2.3
IC Turnover
EBIT
Mar
gin
RUN - rental, used, new equipment
62
Financial Objectives – UK & Ireland
ROIC Potential
Takeaways
Significant infrastructure and power
opportunities
Lean and agile business model
Digital services
Supply chain velocity
5.0% 18% 19% 19% 20%
4.5% 16% 17% 17% 18%
4.0% 14% 15% 15% 16%
3.5% 13% 13% 13% 14%
3.6 3.7 3.8 3.9
EBIT
Mar
gin
IC Turnover
Revenue GrowthKEY GROWTH DRIVERS
Markets
Infrastructure Opportunities
Copper Mining Outsized Growth
Power Systems
Product
Support
Customer Support Agreements
Digital / E-Commerce
Lead Generation Tool
Rebuilds
Integrated Knowledge Centre(s)
Caterpillar
/ Finning
Ultra-Class Mining Vehicles
Autonomy
Life Cycle Value Machines
Underground
RUN
RUN - rental, used, new equipment
63
7463
54
70
118
0
40
80
120
160
200
2013 2014 2015 2016 2017 2018 E
Net Capital Expenditures ($ millions)
Capital Allocation
Goal - Positive Free Cash Flow Through the Cycle
150-200
GROWTH
Technology
Ultra-Class Mining Vehicles
RUN
Complementary Acquisitions
SHAREHOLDERS
Dividends
Share Repurchases
Uses of Cash (2013-2017)
Free Cash Flow
~$1.8 billion
Dividend
Debt repayment
~90% Bucyrus related
Increase in cash
Acquisition of
Saskatchewan dealer
Share
repurchases
Process and technology
investments
Ultra-class mining vehicles
Digital and e-commerce
capabilities
RUN - rental, used, new equipment
80-90
0.60
0.69
0.73 0.730.75
0.80
0.40
0.50
0.60
0.70
0.80
0.90
2013 2014 2015 2016 2017 2018
Dividend ($ per share) – 6% CAGR
2013 to 2017 - annual dividend paid; 2018 - indicated annual dividend64
CLOSING COMMENTS
INVESTOR MEETING
Vancouver, May 10, 2018
Scott Thomson, President and CEO
Summary
Positive macro-economic backdrop in all
regions
Use of technology to improve customer
experience and reduce cost to serve
Significant product support growth
opportunities
Positioned for profitable and capital
efficient growth
Strategic priorities to create value for all
stakeholders
Customer Centricity
Lean & Agile Global Finning
Global Supply Chain
Digital Enterprise
Growth and Diversification
GLOBAL STRATEGIC PRIORITIES
66
INVESTOR MEETING
Vancouver
May 10, 2018
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