INVESTOR PRESENTATION Scott Thomson, President and CEO Mauk - PowerPoint PPT Presentation

INVESTOR PRESENTATION Scott Thomson, President and CEO Mauk Breukels, VP Investor Relations Toronto, Montreal March 27-28, 2018

Forward Looking Information This report contains statements about the Company’s business outlook, objectives, plans, strategic priorities and other state ments 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 statement about the future. Forward-looking statements may include words such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will. Forward-looking statements in this report include, but are not limited to, the timeline for equipment forecast to cash program; capital allocation priorities; expectations for 2018 capital expenditures, net rental additions, and free cash flow; online parts revenue projections; and connected asset projections. All such forward-looking statements are made pursuant to the ‘safe harbour ’ provisions of applicable Canadian securities laws. Unless otherwise indicated by us, forward- looking statements in this report reflect Finning’s expectations as at the date of thi s report. Except as may be required by Canadian securities laws, Finning does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking statements and that Finning’s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, Finning cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by these forward-looking statements include: general economic and market conditions; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, Finning’s products and services; Finning’s ability to maintain its relationship with Caterpillar Inc.; Finning’s dependence on the cont inued market acceptance of its products, including Caterpillar products, and the timely supply of parts and equipment; Finning’s ability to continue to improve productivity and operational efficiencies while continuing to maintain customer service; Finning’s ability to manage cost pressures as growth in revenue occurs; Finning’s ability to reduc e costs in response to slowing activity levels; Finning’s ability to attract sufficient skilled labour resources as market conditions, business strategy or technologies change; Finning’s ability to negotiate and renew collective bargaining agreements with satisfactory terms for Finning’s employees and the Company; the intensity of competitive activity; Fi nning’s ability to raise the capital needed to implement its business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations; the integrity, reliability and availability of, and benefits from information technology and the da ta processed by that technology; and Finning’s ability to protect itself from cybersecurity threats or incidents. Forward-looking statements are provided in this report for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of Finning’s oper ating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose. Forward-looking statements made in this report are based on a number of assumptions that Finning believed were reasonable on the day the Company made the forward- looking statements. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this report are discussed in Section 4 of the Company’s current AIF and in the annual MD&A for the financial ris ks. Finning cautions readers that the risks described in the MD&A and the AIF are not the only ones that could impact the Company. Additional risks and uncertainties not currently known to the Company or that are currently deemed to be immaterial may also have a material adverse effect on Finni ng’ s business, financial condition, or results of operations. Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date of this report. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Finning therefore cannot describe the expected impact in a meaningful way or in the same way Finning presents known risks affecting its business. Monetary amounts are in Canadian dollars and from continuing operations unless noted otherwise Page 2

Finning Overview  Largest Caterpillar dealer Market Statistics (1) - FTT (TSX)  Unrivalled service for 85 years Share price 32.60 Market Cap 5.5B Diversified customer base  S&P/DBRS rating BBB(+/high) Annual dividend / share 0.76 ~12,500 employees  Dividend yield 2.3% Financial Statistics - 2017 Revenue 6.3B EBITDA (2) 583M Bolivia NU YT EBIT 399M NWT EPS 1.31 Adjusted EPS (2)(3) 1.36 Argentina Free cash flow (2) United 165M Chile Kingdom Invested capital (2) AB 2.8B Ireland BC Santiago SK Cannock Edmonton (1) At March 16, 2018 (2) See description of non-GAAP financial measures in 2017 MD&A Vancouver (3) See description of significant items in 2017 MD&A head office Other Rental Used Government 5% UK & Ireland 4% equipment 3% 17% 6% Forestry 4% Construction Canada Mining 44% Product 49% 2017 New 2017 Revenue 2017 Revenue by 19% support New equipment sales by by region line of business 56% equipment industry 34% South America 34% Power Systems 25% Page 3

Strategic Direction PURPOSE We believe in partnering and innovating to build and power a better world VISION Leveraging our global expertise and insight, we are a trusted partner in transforming our customers’ performance Page 4

Value Proposition  Significant operating leverage on increased revenue Adjusted ROIC (1) 21% 18.0%  Working capital efficiency improvements 18% 15.0% 14.7% 15% 13.5%  Innovative customer solutions 12% 9.3% 9%  Higher return on invested capital 5.9% 6% 3% 0% Canada South America UK & Ireland 2016 2017 Revenue (C$ millions) Adjusted EBIT Margin (1) Working Capital Efficiency 10% 3,500  9% 8.6% 8.4% 34% 3.00 3,000 2.83 7.4% 32.2% 8% 32% 2.80 2,500  16% 30.4% 5.5% 6% 2,000 30% 2.60 2.49 4.0% 2.38 1,500 4% 28% 27.1% 2.40  10% 1,000 1.8% 2% 26% 2.20 500 0% 24% 2.00 0 Canada South America UK & Ireland 2015 2016 2017 Canada South America UK & Ireland Working Capital to Sales Ratio (%) 2016 2017 2016 2017 Inventory Turns (times) (1) See description of significant items in 2017 MD&A Page 5

Equipment Supply Chain Transformation Simplify Reduce Improve accuracy quoting, sales, Improve invoice to Forecast Sales NEP (1) Invoice and planning and attachment execution cash cycle processes Days of Inventory (1) New equipment preparation New Equipment Inventory ($m) New Equipment Turns (times) Equipment Forecast to Cash Program Timeline 800 4.0 Canada Q2 2016 – Q4 2017 750 3.5 UK & Ireland Q2 2017 – Q4 2018 700 3.0 South America 2018 + 650 2.5 600 2.0 550 1.5 500 1.0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Page 6

Capital Allocation Priorities  Investments in growth opportunities and long-term strategic initiatives  New ERP system in South America  Digital and e-commerce capabilities 2018 Projections  Electric drive mining vehicles Capital Expenditures $150-200 million  Rental and used equipment integrated go-to-market strategy Net Rental Additions $125-175 million  Dividends Free Cash Flow Positive  Disciplined complementary acquisitions  Opportunistic share repurchases Invested Capital Turnover (times) Free Cash Flow ($ millions) 2.15 550 2.10 483 2.10 500 441 2.05 450 2.02 1.98 2.00 400 370 325 350 1.95 1.90 1.90 300 1.90 1.85 250 1.85 1.82 1.78 200 1.80 165 1.75 150 1.70 100 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 2013 2014 2015 2016 2017 Page 7

Innovate – Digital Strategy Customer Benefits  Valuable insights and visibility  Increased fleet uptime  Lower owning and operating costs  Improved equipment performance  Omni-channel choice Finning Opportunities  Deeper customer and market insights  Additional revenue growth opportunities  Lower cost to serve  Deeper customer relationship and loyalty  Competitive advantage Page 8