Finning International Inc.

Welcome to the Finning International Inc. Fourth Quarter 2022 Investor Call and Webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Analysts who wish to join the question queue may press star then 1 on their telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Greg Palaszczuk, Executive Vice President and Chief Financial Officer. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Finning's fourth quarter earnings call. Joining me today on today's call is Kevin Parks, our President and CEO. Following our remarks today, we'll open the line to questions. This call is being webcast on Finning.com. We've provided a set of slides that we'll reference during our prepared remarks. These slides are posted on the investor relations section of our website, and an audio file of this call will also be archived on our website. Before I turn it over to Kevin, I want to remind everyone that some of the statements provided during this call are forward-looking. Please refer to slides 10 and 11 for important disclosures about forward-looking information, as well as currency and specified financial measures. including non-GAAP financial measures. Please note that forward-looking information is subject to risks, uncertainties, and other factors as discussed in our annual information form under key business risks in our MD&A under risk factors and management and forward-looking disclaimer. Please treat this information with caution as our actual results could differ materially from current expectations. Over to you, Kevin.

Thank you, Greg, and good morning. When I started my career at Finney more than two decades ago, I knew I was joining a great company, and I'm honored to be asked to lead our amazing team of over 14,000 employees, particularly as we celebrate our 90th anniversary this year. I cannot say enough about how our employees make it a pleasure to work for our company every day. We're focused on keeping each other safe while striving to deliver high levels of service to our customers and meaningful outcomes to our partners and communities. Turning to our results, beginning on slide two. 2022 was a strong year. We did an excellent job of controlling what we could, effectively deploying all of our resources through our great teams to support growth in all of our regions. We secured significant strategic wins, drove strong product support, and continued to improve our earnings capacity. We delivered product support revenue of 4.6 billion, up 24% from 2021, and well ahead of pre-pandemic levels. We did this while reinforcing our mid-cycle cost and capital model, which allows us to control SG&A as a percentage of net revenue to 17.7%. We also reinvested to compound our earnings and delivered record EPS of $3.25. We achieved these results through relentless execution of our strategy and the fantastic hard work of our teams. My transition to CEO is going well. Succession is an advantage, and with my team, we are very focused on execution and building on accurate momentum. I've been talking to many of our stakeholders to ensure I understand their perspectives before we start to work on the refinement of our strategy. I don't anticipate any hard turns, but rather a simplification, a prioritization of the current plans. whilst ensuring all of our employees are empowered and engaged in our strategy. We'll be focusing on prioritized growth opportunities, performance through all market conditions, and reinvesting in our business. Looking ahead to 2023, please turn to slide three. Overall, we expect demand conditions in our end markets to remain constructive, supported by favorable commodity prices. Activity levels remain strong in mining, energy, and infrastructure. We do, however, expect some softness in the construction markets in the UK and Chile. We are mindful of the uncertainty in the global business economic environment, and we will continue to reinforce our mid-cycle operating cost and capital model. Our goal is to strengthen the resilience of our business through all market conditions. The team are focused on productivity and optimizing working capital levels, and we will also thoughtfully manage our capital expenditures, and we will be prioritizing further debt repayment, which Greg will provide more details on in a moment. 2023 has started well, and we expect to continue to grow in the first half of the year. Despite strong deliveries in Q4, we have maintained our record backlog We continue to execute on our product support strategy, and we expect to see growth in component remanufacturing, equipment rebuilds, and product support contracts in 2023. I am confident in our ability to continue building on our execution momentum, and I look forward to seeing many of our investors in the coming months to update you all in person. I will now hand it back to Greg to provide more color around our results.