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
2 Monetary amounts are in Canadian dollars and from continuing operations unless noted otherwise 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has been furnished for information only and is accurate at the time of presentation on May 10, 2018, but may later be superseded by more current information.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 Scott Thomson, President and CEO
INVESTOR MEETING Vancouver, May 10, 2018 Improved Performance
2013 – 2017 Achievements 2017 ROIC and FCF
Parts and equipment SUPPLY CHAIN EARNINGS CAPITAL turns improvement TORQUE EFFICIENCIES SERVICE Canada service EBIT EXCELLENCE
ASSET UTILIZATION Canada, UK & Ireland Cost Control Supply Chain Improvements MARKET Core equipment and Operational Efficiency LEADERSHIP parts market share
Safety and Employee Engagement Customer Loyalty
Outstanding Safety Stronger Employee Continued Performance Engagement Improvement 2013 to 2017
14 points
5 The Future - Megatrends
A Shift in Resource Data & Insights Industry 4.0 Supply and Demand Driving Value
Emerging market demand Digitally enabled lean Smart Iron increasingly with secure supply important
New Competitive A New C2B Landscape Societal Deal Customer centricity Opportunities to Sustainable operations and critical enhance customer stakeholder value creation intimacy
6 The Future – Macro-Economic Trends
Finning Region Macro-Economic Trends Infrastructure Spending (2018-2020) . Oil sands – product support focus WESTERN CANADA . Construction, power systems, C$55 billion other mining – robust growth
. Copper mining recovery CHILE US$12 billion . Improved business confidence
. Improved investment climate ARGENTINA US$20 billion . Political risks remain
. Digital business UK & IRELAND £95 billion . Stable economy Source: GI Hub
LNG Canada - $40 billion investment Vaca Muerta
PROJECTED OPPORTUNITY - 1.7 bcf/d 2019-2026
US$ bn ~300 Gas Prime and Well 7 Engines Compression Standby Service INVESTMENT Power 2018-2021
~$300M Engines + Product Support
bcf/d – billion cubic feet per day Source: BNA 7 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 passionate
GLOBAL STRATEGIC PRIORITIES
Customer Centricity
Lean & Agile Global Finning
Global Supply Chain
Digital Enterprise
Growth and Diversification
8 Investment Aligned with 2018-2020 Priorities
CUSTOMER DIGITAL GROWTH & LEAN & AGILE SUPPLY CHAIN CENTRICITY ENTERPRISE DIVERSIFICATION
Ultra-Class Omni-Channel Product Support ERP Mining e-commerce • Condition Monitoring Vehicles • Data-driven Lead Data Driven Generation • Autonomy Global Connected Decision • Rebuild Opportunities • Electric Drive Supply Chain Assets Making • Customer Support • Forecast to Cash Agreements Asset Light • Centralized Performance • Integrated Knowledge Procurement RUN Footprint Solutions Centre Strategy Disciplined Data and CAT Complementary Processes Analytics M&A RUN - Rental, Used, New
9 Strong Alignment with Caterpillar
Exceptional Customer Experience
OPACC Connectivity & Digital as ROIC Product Support Drivers
Operational Excellence
FOUNDATION
Safety / Talent / Sustainability
10 Safe, Talented and Inclusive Team SAFETY Total Recordable Injury Frequency (TRIF)
0.99
0.36
2013 2018 Mar YTD
TALENT INCLUSION Executive Office Candidates Women on Board of Directors
1 4 1 4 2014 2018 2014 2018
11 Execution Velocity – Global Leverage
New operating model
5 YEARS AGO 2018 FORWARD
Finning International Finning Shared Canada Services
Finning Finning International Finning UK & Ireland Digital
Finning Finning Finning Finning Canada South UK & South America Ireland America
12 Value Creation
Outcomes Transformed Sustainable Product Improved Operating and Attractive Opportunities Customer Experience Support Growth Financial Performance to Grow and Diversify
13 PEOPLE Chad Hiley, Chief Human Resources Officer
INVESTOR MEETING Vancouver, May 10, 2018 Talent – Strengthened and Diversified Leadership Team
Number of Recruited Executives
7 6
3
1 3 year plan to develop leaders at all levels in the organization with over 1,300 leaders to participate 2014 2015 2016 2017
Women in Leadership Roles (%) Employee Engagement Highlights 2017
2014 2017
26 23 20 19
13
7
Canada UK & Ireland South America
15 Broadening Safety and Sustainability
TRIF Safety TIF + Employee Health + Environment . Widening the parameters of an injury with + Inclusive Workforce the goal of preventing future incidents + Community Investment . Attention to leading indicators – hazard identifications and near misses SUSTAINABILITY . Relentless focus on significant incidents
TRIF: Canada Saskatchewan
6.4
2.1
0.94 0.88 0.56 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 Dave Cummings, EVP Digital and Technology
INVESTOR MEETING Vancouver, May 10, 2018 BUILT ON KNOWLEDGE & EXPERIENCE OF 85 12,500 YEARS EMPLOYEES
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 Differentiators and role of digital and technology in equipment industry have changed over time
Value Machine Machine Fleet Network Driver Reliability Productivity Productivity Optimization Robust product Equipment and Fleet-wide Analysis of large and reliable parts operator visibility of assets data volumes, and service performance customer insight network monitoring
Enabler Quality design Onboard Low-cost sensors Analytics and and service technologies and wireless Artificial Intelligence Status Mature Proven & growing Early adoption Emerging
19 Value Priorities Creating Value for Customers and Generating Internal Efficiency and Profitability
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
20 Investing in Talent Built a tightly integrated team of experts with industry sector, geography, ethnic and gender diversity
35% 37% 70% Ethnic Diversity Gender Diversity External Hires
AMAZON • AMEC • BUILD DIRECT • TRIMBLE • CAT • 12 20% HOOTSUITE • GE DIGITAL • Languages Spanish MICROSOFT • PWC • SAMSUNG • SCHNEIDER ELECTRIC • SHAW • 18 SIERRA WIRELESS • TECK • TELUS Nationalities • TOSHIBA • BC HYDRO • VANCITY • VISION CRITICAL
Our team diversity reflects our Performing well above gender Talent sourced from tech, international presence and diversity rates in the technology industrial and other sectors customer base and industrial sectors where digital expertise exists
Finning brings domain expertise (i.e. equipment, market and customer 30% expertise) as a critical ingredient in our overall team make-up Finning Expertise
21 Investing in Technology Invested in foundation of traditional information technology and digital capabilities
Customer Experience Platform
Apps & Condition Performance Digital Services Monitoring Solutions Finning
Data Assets Analytics Models Analytics Services & APIs
Finning Cloud - Analytics
Core Business Systems Customer Relationship Omni-Channel Connected Eco-System
CRM eCommerce Connecting ERP Equipment Customer Supply chain IoT Sensors Human Segmentation Capital Digital Integrated Data Sources Management Quoting Procurement
GLOBALIZING AND MODERNIZING DIGITAL CAPABILITIES & IT INFRASTRUCTURE
22 Path to Demonstrable Growth Over last three years we have invested in digital – and grown the key value performance metrics significantly
Digital Parts and Service Equipment Performance Investments Digital Commerce Connectivity Solutions Success Based Funding MARKET FOCUS DRIFT UP EXPAND PARTNER Performance Solutions Customer Share Services Deliver Outcomes
INTERNAL VALUE FOCUS LIFT CHANNEL DELIVER INSIGHTS ADVISE ON PERFORMANCE Improve Core Processes Capabilities Data and Domain Driven Analyze & Recommend
BUILD DIGITAL ASSETS DRIVE PARTS CHANNEL SHIFT GET CONNECTED INFORM ON PERFORMANCE “On the Edge” Talent, Connectivity Volume Online New & Retrofit (Cat and non-Cat) Visibility and Monitoring
Digital Investment Online Parts Connected Assets Performance Solutions 50 (CAD$M) % of addressable opportunity % of addressable population Revenue (CAD$M) 45 150 30.0% 40 80% 35 30 100 25 20 15.0% 40% 15 50 10 5 0 0.0% 0% 0 2016 2017 2018E 2019E 2015 2016 2017 2018E 2019E 2015 2016 2017 2018E 2019E 2015 2016 2017 2018E 2019E
23 Digital Performance
2017 Year End Trajectory employees who 23 ~ $150mregistered Web Sites 37% Online Lead Consolidated Generation* +270% Gender 25% Diversity (2017) 1 Increase in Retro-fit Global Finning Cloud Connections Implemented
Parts.Cat.Com 45% Deployed in YoY growth in All Regions 50 Parts Online Diverse and Talented Digital Team Global Business
42% +$85m +50% Connected Cat Assets YoY B2B Commerce Online Revenue Performance Solutions Revenue (year end 2017) Growth (new and channel shift)
24 SOUTH AMERICA Marcello Marchese, President, Finning South America
INVESTOR MEETING Vancouver, May 10, 2018 Chile and Argentina Infrastructure Opportunities
Road Infrastructure Investment Chile Road Infrastructure Investment Argentina Source: Chilean Chamber of Construction Source: Argentina Government PPP program
US$ billion US$ billion 12 14 10 12 10 8 8 6 6 4 4 2 2 0 0 2013-2017 2018-2022 2013-2017 2018-2022
. Improved business confidence with new . Infrastructure investments expected to grow government . Public Private Partnerships plan launched by . Governmental plan for infrastructure and government – US$17 billion in 60 key projects highway development . 75% expected to be invested between 2018-2022
COMPETITIVE & EASY TO DO BUSINESS WITH CUSTOMER PRIORITIES INNOVATIVE SOLUTIONS 26 Argentina – Oil & Gas Activity Accelerates
# Wells Forecast in Argentina
Source: Argentina Chamber of Construction 2500
2000
1500
1000 Numberof Wells 500 US$7bn 0 INVESTMENT 2017 2018 2019 2020 2021 2022 2018-2021 Source: BNA Conventional Shale Tight Finning well positioned: infrastructure & capabilities investments US$340M opportunity for Finning
CUSTOMER PRIORITIES EXPERTISE & CAPABILITIES INTEGRAL SERVICES
27 Capturing Product Support Growth Opportunities
CSAs (customer support agreements) and Performance Solutions . Increase POPs (parts sales as a percentage of total parts opportunity) . Improve customer satisfaction . Have large impact in construction markets
South America Construction CSA Opportunity South America Construction POPs
basis points Current equipment population with CSAs 12% 25 23
Contract renewal rate 66% 20 18
15 13 New equipment sales with CSAs 47% 10 Number of CSAs at Dec 2016 4,500 5 0 Number of CSAs at Dec 2017 5,600 0 Not connected Add Add CSA Add Connectivity Performance Solutions
28 Capturing Product Support Growth Opportunities
. Leads and sales management process improvements using advanced technology . Condition monitoring . Digital and marketing automation . Lead Generation Tool – in early phase of implementation . Positive impact on product support growth
Lead Management Process Construction Product Support Revenue 2017 Results US$ indexed to 100 in 2014 120 Leads Assigned in CRM 110 Inside Sales Product Support Sales Representative Representative 100 Lead Generation Tool 90 5,090 Signals Identification & qualification 80 2014 2015 2016 2017 2018E 19% 985 Opportunities
42% 413 Sales
29 Key Growth Drivers
South America Equipment Backlog Rental US$ million 2% 400 Power Systems Mining 9% 60% 300
South America 200 Revenue Q1 2018 100 Construction 29% 0 Dec-16 Dec-17 Mar-18
Infrastructure and Product Support Growth Copper Mining Recovery Oil & Gas Opportunities Lead Generation Tool & CSAs Ultra-Class Truck Business friendly governments Integrated Knowledge Centre Underground Mining
30 Chile – Mining Recovery
Cu Better copper prices Declining ore grades create underground opportunities
Better investment climate Over US$12bn underground projects under construction
Fraser Institute Mining Investment # # Attractiveness Index – Chile Ranking 39 8 2016 2017
Chile Copper Production (base scenario) Copper Production & Chile Product Support Revenue Ton (thousand) fine copper New Projects US$ million Ton (million) fine copper
7,000 1,500 6.5 6,000 1,300 New Projects 6.0 5,000 Replacement & Expansion 1,100 Projects 4,000 900 5.5 3,000 700 2,000 5.0 500 1,000 Existing Projects 300 4.5 0 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Product Support Revenue Copper Production Source: Cochilco 2017 Report
Copper production source: Cochilco 2017 Report, Alumbrera annual production 31 Positioned to Capture Growth in Mining
REACTIVE ACTIVE ANTICIPATE
DELIVERABLES Product Support Operational Performance Predictive Maintenance + • From transaction to value-add Mining Expertise • Data driven information: technology and autonomy = • Improved equipment reliability and availability Superior Results • Optimized performance: lowest cost per ton • Improved productivity: highest tons per hour
Ultra Class Opportunity (est.) (>300 tons) 55
5 31 30
2018E 2019E 2020E Brownfield Greenfield 32 Integrated Knowledge Centre
33 Integrated Knowledge Centre (IKC) Reduces Cost and Improves Productivity/Safety for Mining Customers
CUSTOMER DIGITAL Data Driven CENTRICITY ENTERPRISE Insights and Actions
Innovative Integrated Process Models and Technologies
Benefits Operations Best Practices % Additional 797 Maintenance 3-7pts Caterpillar Best Practices 5-30 Cost/Ton Truck Availability Orders Reductions Improvements Product Improvement
34 Caterpillar 794 AC Electric Drive Truck Advantage Best in Class Equipment & Operational Support to Reduce Cost per Ton
BIGGER FUEL COMPETITIVE PAYLOAD EFFICIENT ADVANTAGE SERVICEABILITY FASTER Modular design; Parts Superior braking commonality with mechanical & control drive; All caterpillar components
EXCELLENT PHYSICAL SAFER AVAILABILITY Experience To Date – Americas 2018 Chile Investment: 4 12 operating trucks Population 8 new 20 trucks
Number of customers 5 Hours accumulated 180,000 320 tons Highest truck hours 33,000
Availability >90%
35 CANADA Juan Carlos Villegas, President, Finning Canada
INVESTOR MEETING Vancouver, May 10, 2018 Caterpillar Autonomy Solution
Superior Technology / Over 20% Productivity Improvement
SCALABLE CUSTOMER ~100 trucks vs. 30 from competition FASTER than manned & competition CENTRICITY 250+ auxiliary vs. 30 from competition INTEROPERABLE with manned & competitive fleets ADVANCED FLEET PRODUCTION SYSTEM RETROFIT CAPABILITY TODAY Caterpillar 793 F and 797 F; Komatsu 930-E4 DYNAMIC ASSIGNMENT AUTOMATED FUELING TECHNOLOGY superior to fixed assignment technology not available from competition
Something for Every Mine Trend to autonomy: SAFETY AUTO REMOTE . Eliminate operator fatigue, distraction & training issues ASSIST CONTROL . Absolute control on truck path and speed . Object detection system SEMI- PRODUCTIVITY AUTONOMOUS AUTONOMOUS . Flexibility – work within existing operations . Capacity – smart trucks . Interoperability
37 Caterpillar Autonomous Truck
Caterpillar Global Autonomous Truck Population
250 + 200 Caterpillar 6Customers 200 supporting Largest Sites 150 global 7 114* autonomous 100 population 76 Customers 55 by end of 2018 Competition 3 50 31 supporting 13 3 6Sites 0 2012 2013 2014 2015 2016 2017 2018 E * Competition 115 Trucks
Fortescue Solomon World’s Largest CAT Autonomous Truck CAT Supported Autonomous Mine 2013-2017
Truck population 55 Material moved (tons) 700M+
Support equipment population 100+ Distance driven (kilometer) 25M+
Productivity improvement vs. manned fleet >20% Lost time injuries zero
38 Finning Autonomy Trials
Finning – Canada HAULING
Oil Sands – Imperial Oil 797F D11
Copper – Teck 793F D10
UNDERGROUND Steelmaking Coal – Teck D11
remote control dozer
Finning – South America
Underground Autonomous
Copper – El Teniente R1600H DOZING
39 Mining Pivoting to Growth
Total Mining Equipment Population 7,500
797 Population 310 Market share +110% Product Mining Average Age support market size (years) 9 Service (units) Rebuild profitability Forecast 3x 2018 vs 2017 (2019 vs 2018)
797 Population by Age and Rebuilds # of trucks 80
70
60
50
40
30
20
10
0 5 6 7 8 9 10 11 12 13 14 15 Age Total - Original Total - Rebuilt Original Rebuilt 40 Construction Continues to Rebound in 2018
Market Size Service EBIT % units 16,000 14,000 12,000
10,000 0% 8,000 6,000 4,000 2,000 0 2013 2014 2015 2016 2017 2018E 2013 2014 2015 2016 2017 2018E
Participation 70% 63% 59% 57% 60% 53% 50% 46% 38% 40% . Participation and share 30% . Parts revenue 20% 10% . Service profitability 0% 2013 2014 2015 2016 2017 2018 FE . Industry growth in all provinces
41 Key Growth Drivers
Canada Equipment Backlog Rental 3% $ million 900 Power Systems Oil Sands 12% 35%
600 Canada Revenue Q1 2018
300 Construction 24%
0 Coal & Metals Mining Dec-16 Dec-17 Mar-18 25%
Leverage connectivity to Transform retail Grow RUN sales using drive insights and experience for data-driven insights parts share the mid-market
RUN - Rental Used New
42 Rental Transformation - RUN Highlights Flexible options Revenue realization – Rental integrated Maximized rental ROIC for customers everything for sale into dealership throughout the cycle
Canada From To NEW RENTAL < 3 months 1-36 months Caterpillar % of fleet 40% 60%+ Adds from inventory Primary source of used Line items ~1,000 ~500 inventory (60%+) Targeted machine life 5 years 3 years
Machine specification: Varied Identical USED rent vs sale > 36 months Retail sale at peak residual value . Overall margin improvement with higher mix of rental +30% +6% and used sales . RATES UTILIZATION Maximize asset value 3% 30% 6% with ex-rentals for used sales 2017 vs 2016
43 Grow New Equipment Sales Using Data-Driven Insights
Analytics are driving market knowledge and team behaviors
. Investing in new relationships based on . New sales quoting tool, processes and shovel ready and future projects reporting ensure margin control . Sales teams focused on region and industry . Coverage of existing and new customers . Active measurement of participation and equipment availability . Lower cost sales channels (online, inside sales)
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
Customer Support Connectivity Agreements Ease
Retrofits
Cat Digital Inspection % 183 Condition SOS Monitoring
Repair Quote Q1/17 Q1/18 History . Standard on new . Digital tools for machines Match CSA to transparency and trust . Revenue from connected segment needs . Growing online parts assets up 2.5 times sales (+23% in 2017) (Q1/18 vs Q1/17)
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
Service Capacity for Mid-Market Consolidated Used Supply
. Consistent service standards . Used Retail Centre, . Standardized repair options Edmonton - May 2018 . New delivery model pilots . Consolidated inventory of . Pop-ups used machines . Small trucks . Demonstration area . Increase % in-field
46 Maintaining Cost Discipline
Reduced Cost Structure Increased Absorption Rates (%)
2014 - 2016 CANADA 150
Annual savings $150M 125 Workforce(1) 21%
Facility footprint 25% 100
Fixed SG&A(2) 22% 75
(1) Excluding Saskatchewan operations acquired in 2015 (2) Adjusted for significant items, excluding Saskatchewan operations. 50 Please refer to 2017 MD&A for an explanation of significant items 2013 2014 2015 2016 2017
Absorption rate is calculated as product support gross profit divided by total SG&A costs
47 UK & IRELAND Kevin Parkes, Managing Director, Finning UK & Ireland
INVESTOR MEETING Vancouver, May 10, 2018 UK Market Evolution: Shift from Mining to Core
Mining Parts Core Parts Parts Revenue Recovered Since Mining % of parts revenue % of parts revenue Collapse (£M indexed to 100 in 2014) 80 105 100 60 59 48 95 40 90 23 85 20 7 80 0 75 2014 2018E 2014 2018E 2014 2015 2016 2017 2018E
£500bn Infrastructure Opportunity HS2 is the Largest Rail Project in the UK
. HS2 . Heathrow Expansion Opportunity . 90km section . Self delivery model . Circa 700 core assets . 3 year time line . Value for advice Energy Water Transportation Other
49 Lean & Agile Business Model
Successfully Repositioned for Profitability Improved Inventory Management
Invested Capital Turnover
REVENUE EBIT Aged Inventory Less product SG&A Driven by support in lower cost structure >5 <5% the mix >6 New Reduced cost structure maintains profitability on Parts Equipment lower margin revenue stream Turns Turns
E
Sustainable Fixed Cost Reduction Maintain Working Capital Discipline through geographic consolidation and through growth cycle business line leverage
Working Capital to Sales Ratio
Closed Location 20% reduction in non-service employees E
50 Investing in New Capabilities
Retail Transformation Performance Solutions Easier to do business, lower cost to serve Margin expansion through value added services
OMNI CHANNEL DEVELOPMENT
RETAIL AND ONLINE EXPERIENCE FOR MACHINES AND GENERATORS
51 Connectivity Enables Lean & Agile Service Model
Connected Formatted Network Connected Standard Engineers Repair Options
R Connected RR Vehicles 1 2 3 4 5
RRR Workforce R Management RR
RR
RRR RR RR
RRR R R
RRR R
R RR R Connected Customers Customer Experience NPS Product Support Market Share 13% 12% 70% Safety SG&A Non Observations Productive Travel Time Performance Connect CSA Solutions 52 GLOBAL SUPPLY CHAIN Steve Nielsen, EVP and CFO
INVESTOR MEETING Vancouver, May 10, 2018 Equipment Supply Chain Improvements
Key Performance Drivers
End-to-End Improved Demand and Advanced Technology in Process Improvement Supply Planning Key Processes
Improvements - New Equipment
Lower Inventory Increased Inventory Turns Shorter End-to-End Cycles ($ millions) (X times) (days)
800 4.2
750 4.0 4.1 0.5x 37% 700 3.8 16% 23% 650 3.6 3.6 600 3.4 0.4x 12% ~600 550 3.2
500 3.0 2013 2017 2013 2017 Potential 2015 2017 2015 2017 2015 2017 ↑ 0.1 turns ~$20M FCF Canada South America UK & Ireland 54 Parts Supply Chain Improvements
Key Performance Drivers
Improved Reduced Network Routes Increased Direct Shipments Inventory Management and Touches to Customers
Improvements - Parts
Lower Inventory Increased Inventory Turns Increased Customer Loyalty ($ millions) (X times) (net promoter score)
750 4.2 4.0 4.0 700 3.8 0.5x 10% 3.6 11% 3.4 650 3.5 3.2 13% ~650 15% 3.0 0.8x 600 2.8 2.6 550 2.4 2.2 500 2.0 2013 2017 2013 2017 Potential 2014 2017 2014 2017 2014 2017 ↑ 0.1 turns ~$20M FCF Canada South America UK & Ireland 55 Transformed and Globally Leveraged Supply Chain Drives Significant Competitive Advantage
Data Driven Planning Global Supply Chain design puts the customer at the centre of our business and focuses on enhancing their experience across all channels Efficient Working Capital Talent, Processes and Technology
Leverage Volume and Scalability
56 Supply Chain Benefits Align With Global Strategic Priorities
Customer Digital Lean and Agile Centricity Enterprise Global Finning Priorities
Canada UK & Ireland South America 1. Equipment Supply Chain Velocity Complete In Progress 2019
2. E-Commerce Capabilities Customer Customer Life Cycle Lower Delivery Options Management Cost to Serve
3. Strategic Procurement
Current indirect spend $1B Global Supplier Leverage Global Buying Improve Value for Performance Power Cost Proposal Annual savings potential 5%
57 FINANCIAL PERFORMANCE Steve Nielsen, EVP and CFO
INVESTOR MEETING Vancouver, May 10, 2018 Investor Value Proposition
KEY GROWTH DRIVERS
Infrastructure Opportunities
Revenue Growth Markets Copper Mining Outsized Growth Directionally consistent with previous upcycles; key growth drivers provide upside Power Systems Customer Support Agreements
Digital / E-Commerce Product Lead Generation Tool Earnings Torque Support Leverage of incremental revenue Rebuilds on fixed cost Integrated Knowledge Centre(s)
Ultra-Class Mining Vehicles
Capital Efficiencies Autonomy Caterpillar Supply chain improvements and / Finning capital discipline Life Cycle Value Machines
Underground
RUN
Complementary Acquisitions
RUN - rental, used, new equipment
59 Earnings Torque
2013 2017 Target
SG&A costs ~18% as % revenue ~23% ~20%
Revenue $6.8B Revenue Decline $6.3B Revenue Growth
Business Transformation Lower Cost to Serve . Overhead reduction . Digital / e-commerce . Facility optimization . ERP in South America . Supply chain efficiencies - parts . Global procurement . Cost discipline . Performance insights . Supply chain efficiencies - equipment
Reduced SG&A Costs as Percentage of Revenue – Lower Fixed Cost Base
60 Financial Objectives – Canada
Revenue Growth KEY GROWTH DRIVERS
Infrastructure Opportunities
ROIC Potential Markets Copper Mining Outsized Growth
Power Systems 9.5% 19% 20% 21% 22% Customer Support Agreements 9.0% 18% 19% 20% 21% Digital / E-Commerce Product 8.5% 17% 18% 19% 20% Lead Generation Tool Support
EBIT Margin EBIT 8.0% 16% 17% 18% 18% Rebuilds
Integrated Knowledge Centre(s) 7.5% 15% 16% 17% 17% Ultra-Class Mining Vehicles 2.0 2.1 2.2 2.3 Autonomy IC Turnover Caterpillar / Finning Life Cycle Value Machines Takeaways Underground . Positive outlook for key industries . Mid-market product support growth RUN . Leading autonomy solution RUN - rental, used, new equipment . Rental transformation
61 Financial Objectives – South America
Revenue Growth KEY GROWTH DRIVERS
Infrastructure Opportunities
ROIC Potential Markets Copper Mining Outsized Growth
Power Systems 10.0% 20% 21% 22% 23% Customer Support Agreements 9.5% 19% 20% 21% 22% Digital / E-Commerce
9.0% 18% 19% 20% 21% Product
EBIT Margin EBIT Lead Generation Tool Support
8.5% 17% 18% 19% 20% Rebuilds
Integrated Knowledge Centre(s) 2.0 2.1 2.2 2.3 Ultra-Class Mining Vehicles IC Turnover Autonomy Takeaways Caterpillar / Finning . Chilean copper mining recovery Life Cycle Value Machines . Significant ultra-class truck opportunity Underground . Product support growth through Integrated RUN Knowledge Centre and Lead Generation Tool . Underground mining opportunity RUN - rental, used, new equipment
62 Financial Objectives – UK & Ireland
Revenue Growth KEY GROWTH DRIVERS
Infrastructure Opportunities
ROIC Potential Markets Copper Mining Outsized Growth
Power Systems 5.0% 18% 19% 19% 20% Customer Support Agreements 4.5% 16% 17% 17% 18% Digital / E-Commerce
4.0% 14% 15% 15% 16% Product
EBIT Margin EBIT Lead Generation Tool Support
3.5% 13% 13% 13% 14% Rebuilds
Integrated Knowledge Centre(s) 3.6 3.7 3.8 3.9
IC Turnover Ultra-Class Mining Vehicles
Autonomy Takeaways Caterpillar / Finning . Significant infrastructure and power Life Cycle Value Machines opportunities Underground . Lean and agile business model . Digital services RUN . Supply chain velocity RUN - rental, used, new equipment
63 Capital Allocation
Goal - Positive Free Cash Flow Through the Cycle Uses of Cash (2013-2017)
GROWTH SHAREHOLDERS Share repurchases Technology Dividends Dividend Acquisition of Ultra-Class Mining Vehicles Share Repurchases Saskatchewan dealer
RUN Free Cash Flow Complementary Acquisitions ~$1.8 billion Increase in cash RUN - rental, used, new equipment
Debt repayment ~90% Bucyrus related
Net Capital Expenditures ($ millions) Dividend ($ per share) – 6% CAGR 200 0.90 150-200 . Process and technology investments 0.80 160 0.80 0.75 . Ultra-class mining vehicles 0.73 0.73 80-90 118 0.69 120 . Digital and e-commerce 0.70 capabilities 0.60 74 70 0.60 80 63 54
40 0.50
0 0.40 2013 2014 2015 2016 2017 2018 E 2013 2014 2015 2016 2017 2018
64 2013 to 2017 - annual dividend paid; 2018 - indicated annual dividend CLOSING COMMENTS Scott Thomson, President and CEO
INVESTOR MEETING Vancouver, May 10, 2018 Summary
. Positive macro-economic backdrop in all GLOBAL STRATEGIC PRIORITIES regions . Use of technology to improve customer Customer Centricity experience and reduce cost to serve . Significant product support growth Lean & Agile Global Finning opportunities
. Positioned for profitable and capital Global Supply Chain efficient growth . Strategic priorities to create value for all stakeholders Digital Enterprise
Growth and Diversification
66 INVESTOR MEETING Vancouver May 10, 2018