INVESTOR PRESENTATION November 2018 Leader in Transit Buses, Motor - PowerPoint PPT Presentation

NFI:TSX INVESTOR PRESENTATION November 2018

Leader in Transit Buses, Motor Coach & Aftermarket Target 2,810 1,070 510 $383M** deliveries (EU)* Founded in 1930 – Market Leader Founded in 1932 – Market leader in Founded in 2008 – Market leader in Market Largest bus and motor in heavy duty (HD) transit buses motor coaches cutaway space and innovator in medium coach inventory in North duty transit America Market Share 43% 43% 67% (low-floor cutaway) >44,000 ^ Units in Service >30,000 >3,000 14 Parts Distribution Centers across North America Avg. Selling $535,000 $524,000 $82,000 Price + All figures are in U.S. dollars unless otherwise noted See Appendix for Forward Looking Statements and Financial Terms, Definitions and Conditions * 2018 expected deliveries in Equivalent Units (EU) ^ Includes New Flyer and acquired entities (Orion and NABI) buses 2 ** 2018 Q3 last twelve months (LTM) revenue + Revenue per EU based on the 39 week period ended September 30, 2018 (2018 YTD) deliveries

Strategically • Proven LEAN operations track record Acquired US OEM of low-floor • Demonstrated margin expansion cutaway and medium-duty buses • Accretive acquisitions • Exceptional ability to integrate Acquired assets of US Fiberglass supplier • Strategic part fabrication Acquired US manufacturer of HD transit buses & parts distributor Acquired Can/US FRP Supplier $2,512 $2,382 $2,274 Acquired Orion (transit bus Acquired North America’s parts business) from Daimler leading manufacturer of motor coach & parts/service Global bus body manufacturer $1,539 equity investment in NFI $1,451 Acquired US part NFI converted from $1,199 fabricator in 2010 IDS to Common Share $984 $926 $865 $326 $318 $289 $151 $107 $97 $95 $80 $61 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 LTM Revenue ($M) Adj. EBITDA ($M) 3

North American Footprint - Best in Class AB SK MB QC ON WA 9 manufacturing / assembly facilities ND MN NY WI 10 vehicle servicing centers PA NJ ` OH NV IN IL CA WV KY 14 parts distribution locations TN AL GA 5 fibre-reinforced polymer (FRP) facilities TX FL New Flyer Manufacturing MCI Manufacturing New Flyer Service MCI Service NFI Parts Carfair FRP facility 4

The NFI Difference and Vision Providing leading solutions to move groups of people safely, efficiently, responsibly, and in style. Differentiators:  Offer a full range of the industry’s best buses, aftermarket parts and services  Trusted business partner for over 87 years delivering and standing behind reliable products. Focused on total cost of ownership  Vertically integrated fabrication where NFI owns the drawings to control Cost- Time-Quality  Propulsion agnostic on proven common platforms: clean diesel, natural gas, hybrid and zero-emission (trolley, battery and fuel-cell)  Exceptional spare parts support, publications and training Optimize, Defend, Diversify & Grow 5

Financial Performance Sales ($M US) Adjusted EBITDA ($M US) $400 $3,000 $327 $350 $2,512 $318 $2,382 $2,500 $2,274 $300 $383 $74 $289 $369 $72 $383 $2,000 $250 $1,539 $76 $1,451 $200 $1,500 $1,199 $151 $322 $319 $150 $865 $215 $107 $2,128 $1,000 $2,013 $95 $252 $246 $61 $1,891 $100 $119 $61 $181 $50 $31 $1,217 $1,132 $500 $984 $50 $20 $90 $746 $64 $57 $41 $0 $0 2012 2013 2014 2015 2016 2017 2018 Q3 2012 2013 2014 2015 2016 2017 2018 Q3 LTM LTM Manufacturing Aftermarket Manufacturing Aftermarket Free Cash Flow per Share, Earnings per Share (EPS) and Adj. EPS ($ US) Return on Invested Capital ($M US) $1,600 15.8% 14.8% $2.82 14.3% $2.78 $1,400 $2.58 12.3% $1,200 $1,000 8.6% 8.6% $1.50 $800 $3.23 $3.07 $3.05 $3.06 $1.07 $1,381 $0.84 $600 $1,189 $1,178 $2.15 $2.10 $0.61 $400 $1.24 $711 $691 $641 $0.97 $0.74 $0.72 $0.21 $0.38 $0.52 $0.48 $200 $0 2012 2013 2014 2015 2016 2017 2018 Q3 LTM 2013 2014 2015 2016 2017 2018 Q3 LTM Earnings per Share (basic) Adjusted Earnings per Share (basic) Average Invested Capital ROIC Free Cash Flow Per Share 6

Heavy Duty Transit and Motor Coach Markets Motor Coach Market – Units Delivered in Can/US and MCI Share** HD Transit Bus Market - EUs delivered in Can/US & New Flyer Share* 7,000 6,336 6,236 7,000 74% 6,032 5,933 5,816 5,795 69% 5,533 6,000 5,388 5,347 5,284 6,000 5,212 60% 62% 63% 63% 5,154 5,109 5,128 60% 62% 5,065 5,009 5,010 4,797 4,723 57% 56% 56% 5,000 4,333 5,000 51% 52% 50% 4,047 44% 46% 43% 4,000 42% 4,000 3,001 37% 39% 48% 2,819 38% 44% 44% 43% 2,485 2,471 42% 41% 2,385 2,357 2,324 2,274 38% 3,000 37% 37% 3,000 2,092 37% 36% 37% 35% 2,048 34% 35% 1,918 1,852 1,825 1,783 32% 1,756 1,648 30% 1,581 1,510 1,479 1,341 26% 1,184 2,000 2,000 19% 20% 25% 1,000 1,000 0 - Metropolitan Urban Municipal Line Haul/Fixed Tour & Charter Limo Employee Public Transit 200 operators 900+operators 20 operators 43% of installed fleet 6% of 20% of installed fleet Route Shuttle 39% of installed fleet 33% of installed fleet 28% of installed installed 2% of fleet 29% of installed fleet fleet installed fleet * Sourced from New Flyer databases and Management estimates 7 ** Sourced from MCI database and Management estimates

North American Transit Leader HD Transit Bus Market Share 2017*  Team of nearly 3,000 employees throughout North America  Supports over 44,000 heavy duty transit buses in service  Over 7,300 vehicles using electric motors and battery propulsion, and 20% 1,600 Zero Emission Buses (ZEB) 3%  New Flyer has the industry’s strongest track record of electric vehicle 6% performance 6,300EU  First and only bus manufacturer to achieve all three ISO certifications 43% (ISO9001, ISO14001, ISO18001) 28%  15 of the 25 largest transit agencies in North America primarily operate New Flyer supported buses (24 of the top 25 operate a New Flyer supported bus – will increase to 25 with new Montreal award) Estimated active North America Transit Bus Fleet* Others 53% 21% 9% 17% Orion Parts and NABI acquired by NFI in 2013 88,000 BUSES IN SERVICE * Sourced from New Flyer database and Management estimates 8

The Future is Bright Insourcing Aging Fleet and Zero Emission Buses Public Bid Universe & Active Opportunities (EUs)* Opportunities Federal Funding 25,000 1 2 3 20,000 Average age of HD Transit Launching of state-of-the Transit authorities making 15,000 Fleet: art 315,000 sq. ft. longer-term transition to Shepherdsville, KY Zero Emission Buses US = 7.8 years^ 10,000 Canada = 7.3 years^ Facility will fabricate parts New Flyer is a leader in for New Flyer, MCI, NFI the space with the 5,000 FAST Act funding in-place Parts & ARBOC strongest track record and to 2021 the most electric buses on 0 the road in North America Exploring other 12-Jan-09 12-Jul-09 12-Jan-10 12-Jul-10 12-Jan-11 12-Jul-11 12-Jan-12 12-Jul-12 12-Jan-13 12-Jul-13 12-Jan-14 12-Jul-14 12-Jan-15 12-Jul-15 12-Jan-16 12-Jul-16 12-Jan-17 12-Jul-17 12-Jan-18 12-Jul-18 FTA funds 80% of a transit insourcing opportunities bus capital cost Industry leading Xcelsior Charge bus Bid Universe of 21,362 EUs 2017 ZEB Awards Bids in Process Bids Operator Firm & Option EU Submitted Forecasted 5 year buy** EUs 955 2,323 18,084 353 406 * Bid universe is primarily applicable to New Flyer, but MCI also sells to public transit agencies that would be included in totals above ** Management estimate of future expected industry procurement in the next five years based on 112 discussions directly with individual U.S. and Canadian transit authorities ^ Sourced from APTA Public Transportation Factbook 2016 9

The Motor Coach Leader Motor Coach Transit Bus Market Share 2017  Team of 1,750 employees  Supports nearly 30,000 motor coaches in service Mexico Quebec and New York Owned by Volvo Truck & Bus  J Coach for private market and D Coach primarily for public operators Germany 26%  Focused on innovation and new designs including D45 CRT LE Coach, Owned by Daimler AG and imported by REV Group J3500 35’ coach and battery-electric coach 1%  D45 CRT LE motor coach, with its revolutionary improvements to 7% Turkey ~2,500EU support people with physical disabilities, now eligible for FTA funding Owned by Sabanchi Group following its successful completion of the FTA’s Altoona bus testing 43% program MCI Share increased 23% by 4% in 2017  Numerous operational optimization projects underway including IT Belgium & Macedonia Negligible Deliveries to date harmonization and production line improvements Privately owned  Two manufacturing sites with 7 service centers Spain US Active North America Motor Coach Fleet 51% 24% 19% 4%2% 55,000 UNITS * Source: MCI Database and Management estimates 10