June 25-26, 2013
Finning Canada Investor Tour
Forward Looking Information
2
This report contains statements about the Company’s business outlook, objectives, plans, strategic priorities and other statements 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, statements with respect to: expectations with respect to the economy and associated impact on the Company’s financial results; expected revenue and SG&A
levels and EBIT growth; anticipated generation of free cash flow (including projected net capital and rental expenditures), and its expected use; anticipated defined benefit plan contributions;
the expected target range of the Company’s Debt Ratio; the impact of new and revised IFRS that have been issued but are not yet effective. 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 describe Finning’s expectations at June 25, 2013. 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; risks associated with the conduct of
business in foreign jurisdictions; 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 dependence on the continued market acceptance of Caterpillar’s products and Caterpillar’s 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 revenues occur; Finning’s ability to reduce
costs in response to slowing activity levels; Finning’s ability to attract sufficient skilled labour resources to meet growing product support demand; 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; Finning’s ability to realize expected benefits of
acquisitions; Finning’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 information technology and the data processed by that technology;
expected operational benefits from the new ERP system. 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 operating 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.
Refer in particular to the Outlook section of the MD&A. 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 the Company’s current Annual Information Form (AIF) in Section 4.
Finning cautions readers that the risks described in 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 Finning’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 hereof. 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.
All amounts in this presentation are in Canadian dollars unless otherwise noted
June 25, 2013
Finning Canada Investor Tour
Andy Fraser, President, Finning Canada
Strategic Overview
Finning Canada
2012 revenue = $3.3 billion
2012 EBIT = $231 million
Employees: ~6,000
Industries:
Mining (including oil sands)
Construction
Power systems
Petroleum / Oil & Gas
Forestry
Pipelines
80th anniversary in 2013
4
Vancouver
Edmonton
(OEM, PDC)
Fort McMurray
(4 branches + Fort McKay)
Western Canada
Red Deer
(COE)
British
Columbia
Alberta
Yukon
Northwest
Territories
2012 Canada Revenue Profile
5
Mining
(incl. oil sands)
32%
Power
Systems
12%
Construction
35%
Mining
(including oil sands)
66%
Power Systems
8%
Construction
26%
Product Support
Revenue by Industry
New Equipment
Sales by Industry
Forestry
4%
Other
6%
Petroleum
11%
Revenue
by Line of Business
New
Equipment
44%
Product
Support
43%
Used
Equipment
5%
Rental
8%
Other includes government and industrialProduct support for petroleum and forestry
is allocated among above key industries
Strategic Priorities
Advance operational excellence
Leverage investments
Fort McKay oil sands service facility
Expanded mining product line (formerly Bucyrus)
ERP system
Grow market share in construction, forestry and power
systems
6
Improve EBIT Margin
Operational Excellence
Key focus areas
Supply chain
Service efficiency
SG&A cost management
Focus on disciplined execution
Organizational alignment
7
Culture of Accountability
Safety
Lost time injury frequency (LTIF)
= 0.14 in Q1/13
Employee engagement
Record participation in 2012
Technical training
Focus on compliance and
discipline
8
Market Outlook
Mining
Customers under pressure to reduce costs
Soft market conditions for new equipment sales
Product support expected to remain active
Large installed machine population
Good equipment utilization rates
Full-year’s contribution from expanded mining product line
Heavy construction and forestry
Expect solid activity levels in new equipment and product support
Power Systems
Continued softness in conventional oil & gas
EPG and marine expected to remain strong
9
Summary
Providing superior customer service
Driving operational excellence
Focus on disciplined execution
10
June 26, 2013
Finning Canada Investor Tour
Dave Primrose, EVP, Mining, Construction and Forestry
Mining, Construction and Forestry
Construction and Forestry
Heavy Construction
Continued investment in
infrastructure
Alberta: ring roads, airports, LRT’s
British Columbia: Evergreen Line
Rapid Transit - Coquitlam to
Vancouver; Interior to Lower
Mainland (ILM) Transmission
Project - Nicola to Coquitlam
Numerous pipeline projects in
Western Canada through 2020
Forestry
US housing starts improving
Diversified markets
12
Power Systems
Petroleum / Oil & Gas
Many idled drilling rigs
Exploration, well servicing and production companies leveraging existing
assets, driving demand for product support
Natural Gas
Low prices expected to curtail exploration
Increased focus on producing more power using NG
Desire to switch from diesel to NG (or dual fuel) growing in all markets
Electric Power Generation - new mines off-grid, requiring
powerhouses
BC Hydro upgrading off-grid communities
Alberta market remains buoyant
Solid demand, particularly in mining
13
Coal and Metals Mining
Two copper mines, Mt. Milligan and Red Chris, going into production
in 2013 - 2014
Diamond mining activity continues strong as Dominion Diamond
expands in NWT by purchasing Ekati
Teck Coal proceeds with site development of Quintette Coal in north
eastern BC
Underground mining opportunities expand as product line and
market grow
Numerous new mines at various stages throughout our territory
14
Mining Support Capabilities
15
AlbertaBritish
Columbia
Kamloops
Sparwood
Calgary
Fort
McMurray
Red Deer
Centre of Excellence
Edmonton
OEM Component
Remanufacturing
Tracker Parts
Distribution Centre
Tumbler
Ridge
Prince George
Fort McKay
Service Facility
Caterpillar,
Illinoisnew
equipment to
assemble
OEM Remanufacturing
325,000 square foot purpose built “5 Star” facility
Meets Caterpillar’s highest contamination control standards
530 employees, two shift operation
Fully integrated facility
Investments in inspection, salvage and testing technologies
Reman components reduce equipment owning and operating costs
Typically 50% to 75% of cost of new components
Finning Canada mining and heavy construction product support
focus
Critical customer requirements
Availability
Quality and reliability
Cost efficiency, continuous improvement
Supporting services
16
Center of Excellence (COE)
17
1. Machine Overhauls / Rebuilds
Overhauling equipment for its second life under various options –
45% to 75% of new price
Finning - customer program
CAT certified powertrain program
CAT complete machine certification
Support capabilities
Component repairs
Ready-to-go ‘modules’ (e.g., cabs,
grader circles, track frames, radiators)
Engineered products (e.g., handrails, platforms)
2. New Equipment Preparation
New equipment delivered from CAT to COE where it is assembled and
modified to meet customer specifications
Center of Excellence (COE)
18
D11 dozer with
>82,000hrs
Expanded Mining Product Line
Bucyrus acquisition meeting business case expectations
Service on plan; parts ahead of plan
Equipment sales slower, as expected
Ongoing transition to genuine Caterpillar parts and
components
Expanded electric drive truck options with Unit Rig in addition
to 795
Existing models updated and new models introduced
19
Operational Excellence
Supply Chain
Global Supply Chain Council
Improving forecasting and planning for
equipment
Leveraging Spokane Parts Distribution Center
Service Excellence
Customer-centric business balanced with
operating discipline
Leveraging scale and repeatable processes
Caterpillar Production System (CPS)
SG&A initiatives
Third party benchmark and assessment of
SG&A costs
Developing and implementing sustainable
process improvements in product support areas
20
Strong Competitive Advantage
Leading market position – broadest product line
Product support capabilities
Service culture
Focus on operational excellence
Enhancing customer service and loyalty
Driving sustainable improvement in operating profitability
21
June 26, 2013
Finning Canada Investor Tour
Brent Davis, VP, Oil Sands
Oil Sands
23
Finning Oil Sands Locations
CNRL
Total E&P
Syncrude
Syncrude
Suncor
Suncor
Shell
Syncrude
Fort Hills
Energy
Imperial
OilShell
Exxon
Mobil
Syncrude
Fort
McMurray
Fort McKay
Athabasca River
Mildred Lake Branch
Fort McMurray
Town Shop Branch
Power Systems
Branch
Shell/Albian
2 warehouses
Fort McKay
Service Facility
The Cat Rental Store
$
2005 2006 2007 2008 2009 2010 2011 2012
Oil Sands Revenue Growth
Total revenue
2012: ~$1 billion
7-year CAGR (2005 to 2012) ~17%
24
Oil Sands Revenue
New EquipmentProduct Support
797 Population Growth
797 Population in Oil Sands at Year-End
25
10
250
0
50
100
150
200
250
300
1999 2003 2004 2005 2006 2007 2008 2009 2010 2011 20122000 2001 2002
1st 797 – 100,000 Hours
26
Oil Sands Product Support
~1,100 regional employees, including
~550 mechanics and apprentices
5 branches, including new Fort McKay
service facility
4 parts warehouses (Mildred Lake, Fort
McMurray, 2 at Shell/Albian)
Parts distribution center (Edmonton)
OEM - component remanufacturing
facility (Edmonton)
COE - equipment assembly and rebuild
facility (Red Deer)
Dedicated business units at mine sites
Over 200 fully equipped field service
trucks
27
Fort McKay – Game Changer
Key stats
16 bays; 160,000 sq. ft.
$110M investment: 2011 and 2012
Operational in Q4 2012;
24 x 7 in January 2013
~120 employees
Repair and maintenance facility
Supports contractors and
producers
Regional training centre
Capacity to rebuild 797 trucks
Ramping up on plan
28
Operational Excellence
Driving velocity, process, technology
Velocity - capacity planning and equipment scheduling
Bay scheduler – efficient planning
Warehouse – staging, not stocking – parts as required
Process - Caterpillar Production System (CPS) – make it visual
Lean and operational efficiency
In bay monitors – real time updates on job progress
Technology – enabler
Electronic pen
Toolhound
29
Customer-centric business balanced
with operating discipline
Challenges
Level of commodity prices for new mines and expansions
Customers focused on cost containment
Pricing differential - pipeline capacity
Environmental concerns
Attracting and retaining technical labour
30
Building for the Future
Keyano FinnTech Program
Customized Heavy Equipment Technician apprenticeship
program (CAT, Finning, Keyano)
$3.5M investment from CAT and Finning
Launched in Feb 2012
Will graduate up to 48 2nd year apprentices per year
First graduate class - end of 2013
31
Opportunities
Significant product support opportunity
Large and well-utilized equipment population
Aging fleets drive demand for component remanufacturing and
rebuild
Expanded mining product line
Equipment opportunity
Future fleet replacement – 797’s 100,000 hours
Future mine expansions and new projects
Expanded mining product line (e.g. electric drive truck, large
hydraulic mining shovel)
32
Reducing customer operating costs
by improving equipment productivity
Priorities
Deliver superior customer service
Drive efficiency and productivity
Attract and retain technicians
Capture product support opportunities
33

Finning Canada Investor Tour Presentations

  • 1.
    June 25-26, 2013 FinningCanada Investor Tour
  • 2.
    Forward Looking Information 2 Thisreport contains statements about the Company’s business outlook, objectives, plans, strategic priorities and other statements 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, statements with respect to: expectations with respect to the economy and associated impact on the Company’s financial results; expected revenue and SG&A levels and EBIT growth; anticipated generation of free cash flow (including projected net capital and rental expenditures), and its expected use; anticipated defined benefit plan contributions; the expected target range of the Company’s Debt Ratio; the impact of new and revised IFRS that have been issued but are not yet effective. 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 describe Finning’s expectations at June 25, 2013. 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; risks associated with the conduct of business in foreign jurisdictions; 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 dependence on the continued market acceptance of Caterpillar’s products and Caterpillar’s 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 revenues occur; Finning’s ability to reduce costs in response to slowing activity levels; Finning’s ability to attract sufficient skilled labour resources to meet growing product support demand; 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; Finning’s ability to realize expected benefits of acquisitions; Finning’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 information technology and the data processed by that technology; expected operational benefits from the new ERP system. 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 operating 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. Refer in particular to the Outlook section of the MD&A. 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 the Company’s current Annual Information Form (AIF) in Section 4. Finning cautions readers that the risks described in 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 Finning’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 hereof. 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. All amounts in this presentation are in Canadian dollars unless otherwise noted
  • 3.
    June 25, 2013 FinningCanada Investor Tour Andy Fraser, President, Finning Canada Strategic Overview
  • 4.
    Finning Canada 2012 revenue= $3.3 billion 2012 EBIT = $231 million Employees: ~6,000 Industries: Mining (including oil sands) Construction Power systems Petroleum / Oil & Gas Forestry Pipelines 80th anniversary in 2013 4 Vancouver Edmonton (OEM, PDC) Fort McMurray (4 branches + Fort McKay) Western Canada Red Deer (COE) British Columbia Alberta Yukon Northwest Territories
  • 5.
    2012 Canada RevenueProfile 5 Mining (incl. oil sands) 32% Power Systems 12% Construction 35% Mining (including oil sands) 66% Power Systems 8% Construction 26% Product Support Revenue by Industry New Equipment Sales by Industry Forestry 4% Other 6% Petroleum 11% Revenue by Line of Business New Equipment 44% Product Support 43% Used Equipment 5% Rental 8% Other includes government and industrialProduct support for petroleum and forestry is allocated among above key industries
  • 6.
    Strategic Priorities Advance operationalexcellence Leverage investments Fort McKay oil sands service facility Expanded mining product line (formerly Bucyrus) ERP system Grow market share in construction, forestry and power systems 6 Improve EBIT Margin
  • 7.
    Operational Excellence Key focusareas Supply chain Service efficiency SG&A cost management Focus on disciplined execution Organizational alignment 7
  • 8.
    Culture of Accountability Safety Losttime injury frequency (LTIF) = 0.14 in Q1/13 Employee engagement Record participation in 2012 Technical training Focus on compliance and discipline 8
  • 9.
    Market Outlook Mining Customers underpressure to reduce costs Soft market conditions for new equipment sales Product support expected to remain active Large installed machine population Good equipment utilization rates Full-year’s contribution from expanded mining product line Heavy construction and forestry Expect solid activity levels in new equipment and product support Power Systems Continued softness in conventional oil & gas EPG and marine expected to remain strong 9
  • 10.
    Summary Providing superior customerservice Driving operational excellence Focus on disciplined execution 10
  • 11.
    June 26, 2013 FinningCanada Investor Tour Dave Primrose, EVP, Mining, Construction and Forestry Mining, Construction and Forestry
  • 12.
    Construction and Forestry HeavyConstruction Continued investment in infrastructure Alberta: ring roads, airports, LRT’s British Columbia: Evergreen Line Rapid Transit - Coquitlam to Vancouver; Interior to Lower Mainland (ILM) Transmission Project - Nicola to Coquitlam Numerous pipeline projects in Western Canada through 2020 Forestry US housing starts improving Diversified markets 12
  • 13.
    Power Systems Petroleum /Oil & Gas Many idled drilling rigs Exploration, well servicing and production companies leveraging existing assets, driving demand for product support Natural Gas Low prices expected to curtail exploration Increased focus on producing more power using NG Desire to switch from diesel to NG (or dual fuel) growing in all markets Electric Power Generation - new mines off-grid, requiring powerhouses BC Hydro upgrading off-grid communities Alberta market remains buoyant Solid demand, particularly in mining 13
  • 14.
    Coal and MetalsMining Two copper mines, Mt. Milligan and Red Chris, going into production in 2013 - 2014 Diamond mining activity continues strong as Dominion Diamond expands in NWT by purchasing Ekati Teck Coal proceeds with site development of Quintette Coal in north eastern BC Underground mining opportunities expand as product line and market grow Numerous new mines at various stages throughout our territory 14
  • 15.
    Mining Support Capabilities 15 AlbertaBritish Columbia Kamloops Sparwood Calgary Fort McMurray RedDeer Centre of Excellence Edmonton OEM Component Remanufacturing Tracker Parts Distribution Centre Tumbler Ridge Prince George Fort McKay Service Facility Caterpillar, Illinoisnew equipment to assemble
  • 16.
    OEM Remanufacturing 325,000 squarefoot purpose built “5 Star” facility Meets Caterpillar’s highest contamination control standards 530 employees, two shift operation Fully integrated facility Investments in inspection, salvage and testing technologies Reman components reduce equipment owning and operating costs Typically 50% to 75% of cost of new components Finning Canada mining and heavy construction product support focus Critical customer requirements Availability Quality and reliability Cost efficiency, continuous improvement Supporting services 16
  • 17.
    Center of Excellence(COE) 17 1. Machine Overhauls / Rebuilds Overhauling equipment for its second life under various options – 45% to 75% of new price Finning - customer program CAT certified powertrain program CAT complete machine certification Support capabilities Component repairs Ready-to-go ‘modules’ (e.g., cabs, grader circles, track frames, radiators) Engineered products (e.g., handrails, platforms) 2. New Equipment Preparation New equipment delivered from CAT to COE where it is assembled and modified to meet customer specifications
  • 18.
    Center of Excellence(COE) 18 D11 dozer with >82,000hrs
  • 19.
    Expanded Mining ProductLine Bucyrus acquisition meeting business case expectations Service on plan; parts ahead of plan Equipment sales slower, as expected Ongoing transition to genuine Caterpillar parts and components Expanded electric drive truck options with Unit Rig in addition to 795 Existing models updated and new models introduced 19
  • 20.
    Operational Excellence Supply Chain GlobalSupply Chain Council Improving forecasting and planning for equipment Leveraging Spokane Parts Distribution Center Service Excellence Customer-centric business balanced with operating discipline Leveraging scale and repeatable processes Caterpillar Production System (CPS) SG&A initiatives Third party benchmark and assessment of SG&A costs Developing and implementing sustainable process improvements in product support areas 20
  • 21.
    Strong Competitive Advantage Leadingmarket position – broadest product line Product support capabilities Service culture Focus on operational excellence Enhancing customer service and loyalty Driving sustainable improvement in operating profitability 21
  • 22.
    June 26, 2013 FinningCanada Investor Tour Brent Davis, VP, Oil Sands Oil Sands
  • 23.
    23 Finning Oil SandsLocations CNRL Total E&P Syncrude Syncrude Suncor Suncor Shell Syncrude Fort Hills Energy Imperial OilShell Exxon Mobil Syncrude Fort McMurray Fort McKay Athabasca River Mildred Lake Branch Fort McMurray Town Shop Branch Power Systems Branch Shell/Albian 2 warehouses Fort McKay Service Facility The Cat Rental Store
  • 24.
    $ 2005 2006 20072008 2009 2010 2011 2012 Oil Sands Revenue Growth Total revenue 2012: ~$1 billion 7-year CAGR (2005 to 2012) ~17% 24 Oil Sands Revenue New EquipmentProduct Support
  • 25.
    797 Population Growth 797Population in Oil Sands at Year-End 25 10 250 0 50 100 150 200 250 300 1999 2003 2004 2005 2006 2007 2008 2009 2010 2011 20122000 2001 2002
  • 26.
    1st 797 –100,000 Hours 26
  • 27.
    Oil Sands ProductSupport ~1,100 regional employees, including ~550 mechanics and apprentices 5 branches, including new Fort McKay service facility 4 parts warehouses (Mildred Lake, Fort McMurray, 2 at Shell/Albian) Parts distribution center (Edmonton) OEM - component remanufacturing facility (Edmonton) COE - equipment assembly and rebuild facility (Red Deer) Dedicated business units at mine sites Over 200 fully equipped field service trucks 27
  • 28.
    Fort McKay –Game Changer Key stats 16 bays; 160,000 sq. ft. $110M investment: 2011 and 2012 Operational in Q4 2012; 24 x 7 in January 2013 ~120 employees Repair and maintenance facility Supports contractors and producers Regional training centre Capacity to rebuild 797 trucks Ramping up on plan 28
  • 29.
    Operational Excellence Driving velocity,process, technology Velocity - capacity planning and equipment scheduling Bay scheduler – efficient planning Warehouse – staging, not stocking – parts as required Process - Caterpillar Production System (CPS) – make it visual Lean and operational efficiency In bay monitors – real time updates on job progress Technology – enabler Electronic pen Toolhound 29 Customer-centric business balanced with operating discipline
  • 30.
    Challenges Level of commodityprices for new mines and expansions Customers focused on cost containment Pricing differential - pipeline capacity Environmental concerns Attracting and retaining technical labour 30
  • 31.
    Building for theFuture Keyano FinnTech Program Customized Heavy Equipment Technician apprenticeship program (CAT, Finning, Keyano) $3.5M investment from CAT and Finning Launched in Feb 2012 Will graduate up to 48 2nd year apprentices per year First graduate class - end of 2013 31
  • 32.
    Opportunities Significant product supportopportunity Large and well-utilized equipment population Aging fleets drive demand for component remanufacturing and rebuild Expanded mining product line Equipment opportunity Future fleet replacement – 797’s 100,000 hours Future mine expansions and new projects Expanded mining product line (e.g. electric drive truck, large hydraulic mining shovel) 32 Reducing customer operating costs by improving equipment productivity
  • 33.
    Priorities Deliver superior customerservice Drive efficiency and productivity Attract and retain technicians Capture product support opportunities 33