Mr. Kevin Parkes reports

FINNING HOSTS INVESTOR DAY AND TOUR AND PROVIDES AN UPDATE ON STRATEGIC PRIORITIES AND GROWTH OUTLOOK

Finning International Inc. is hosting its investor day on Sept. 26, 2023, in Antofagasta, Chile, starting at 7:30 a.m. Eastern Time. To participate in the 2023 investor day virtually, please register for the webcast. Following presentations by Finning's leadership team, participants will have an opportunity to ask questions. If you are participating virtually, please use the question-and-answer function on the webcast portal. The video webcast and the presentation slides will be archived on the company's website following the live event.

"We are pleased to welcome investors and analysts to the Antofagasta mining region in Chile. We look forward to introducing our global leadership team and refreshed strategy, as well as demonstrating our strong local leadership and capabilities in this exciting growth region.

"We have significantly exceeded our 2021 investor day plan. The strong operational execution by this management team has transformed our return on invested capital and earnings capacity today and for the future. Our refreshed strategy will build upon this success and will focus on the following priorities: drive product support, full-cycle resilience and sustainable growth," said Kevin Parkes, president and chief executive officer of Finning International.

Drive product support

Finning's product support business is its key value driver and remains by far the largest opportunity for resilient, profitable growth. The company is working to capture an even greater share of the product support opportunity across the full asset life cycle through further penetration of customer value agreements, expanding its rebuild business and continuing to strategically grow its equipment population. On a consolidated basis, Finning is targeting greater than 7-per-cent compounded annual growth of its product support revenue from the last 12 months ended Q2 2023 through 2025.

Full-cycle resilience

Having a lower and more flexible cost and invested capital base are critical enablers of greater earnings consistency. Finning has made excellent progress reducing its cost base and is pleased with its selling, general and administrative as a percentage of net revenue reaching 17 per cent over the last 12 months ended Q2 2023. This is an area of continuous improvement, and the company is well on its way to reducing its SG&A as a percentage of net revenue below 17 per cent in a steady growth environment. Finning's immediate top priority is to increase its invested capital turns while concurrently improving customer service levels. This will be achieved through a combination of systematic improvements in working capital velocity as supply chain normalizes, as well as optimizing lower ROIC (return on invested capital) activities. The company is targeting invested capital turns of 2.3 to 2.5 times by the end of 2025. In a steady growth environment, Finning expects its invested capital improvement plan to unlock more than $450-million of capital.

Sustainable growth

As Finning reinvests in its business, it will continue to grow product support and place a greater emphasis on capturing attractive opportunities in the used, rental and power systems segments. Growth in these segments is supported by strong megatrends, and the company is optimally positioned in its territories to benefit from these large addressable markets. Finning is building its capabilities in these areas and sees opportunities to deploy capital with attractive returns through 2025 and beyond.

"All these elements of our go-forward strategy are integrated and critical to our long-term success. Product support is our most profitable business and the foundation of our full-cycle resilience. Growing the resilient and strategically important used, rental and power segments will also increase our equipment population to help us drive even greater product support growth. As we execute on our refreshed strategy, we expect our full-cycle ROIC to increase significantly from historical levels to the 18-per-cent-to-25-per-cent range.

"Importantly, our people are our biggest competitive advantage. We will continue to foster a safe, secure and prosperous place to work, and empower our employees to build long-term customer loyalty. We look forward to many of you having the chance to meet and interact with our great people in Chile over the next three days," concluded Mr. Parkes.

About Finning International Inc.

Finning is the world's largest Caterpillar dealer, delivering unrivalled service to customers for 90 years. Headquartered in Surrey, B.C., it provides Caterpillar equipment, parts, services and performance solutions in Western Canada, Chile, Argentina, Bolivia, the United Kingdom and Ireland.

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