Investor Presentation NOVEMBER 2019
WHO IS NFI? Part Fabrication Bus Design and Manufacture Aftermarket and Service North America’s most Carfair Composites is a leader in The North American Leader in comprehensive parts fiber-reinforced plastic (FRP) Heavy-Duty Transit buses organization, providing design and composites parts, technical technology publications, training, and support for its OEM Started in 1941 in Winnipeg, NFI’s dedicated internal parts - product lines North America’s largest fabrication facility launched in manufacturer of Motor Coaches 2017 in Shepherdsville, KY UK’s leading bus parts distributor and aftermarket service Tracing its roots to 1892 with the support network Dennis, Alexander and Plaxton companies, ADL is a global manufacturer of double deck Supports eMobility and single deck buses and projects from start to motor coaches headquartered in finish Larbert, Scotland Founded in 2008 in Middlebury, Indiana ARBOC is a leader in low- floor cutaway and medium-duty shuttles 2
OUR MISSION OUR VISION To design and deliver To enable the future of exceptional transportation mobility with innovative solutions that are safe, and sustainable solutions accessible, efficient and reliable
WHY INVEST IN NFI Track Record Our Differentiators • • Trusted business partner with nearly 400 years of combined Exclusively focused on bus & coach with market leading bus and motor coach design and manufacturing experience positions in multiple jurisdictions • • 5 year Q3 2019 LTM Revenue CAGR of 13.3% and Adj. ~75% of revenue driven by public customers EBITDA CAGR of 22.3% • A market technology leader with a track record of • 11.3% Q3 2019 LTM Adj. EBITDA margin innovation offering all types of propulsion options • • History of sustainable dividends: 13.3% annual growth in Vertically integrated North American part fabrication to annual dividend in 2019 with 49.6% Q3 2019 LTM payout ratio control cost, time and quality. Offers and margin enhancement. Opportunities to apply at ADL • Multi-year backlog of 11,594 EUs ($5.5B) • A developing global supply chain and scale purchasing • Recently acquired ADL (2014 – 2018 revenue CAGR of 10.5% ) power • • ADL’s experience in growing in new markets Prudent capital management focused on investing in business operations, strategic acquisitions and returning cash to shareholders through Dividends and NCIB 4
PROVEN STRATEGIC GROWTH AND DIVERSIFICATION • Proven LEAN operations track record • Demonstrated margin expansion Acquired US OEM of low-floor cutaway and medium-duty buses • Strategic part fabrication capability • Accretive acquisitions • Acquired assets of US Proven ability to integrate Fiberglass supplier Acquired UK market leader and global leader on Double Deckers $3,112 Acquired US manufacturer of HD transit buses & parts distributor Acquired $475 FRP Supplier $2,638 Acquired North America’s $2,519 leading Coach manufacturer $2,382 $2,274 Acquired Orion (transit bus parts business) from Daimler LTM Global bus body manufacturer Pro forma equity investment in NFI $1,539 ADL (2) $1,451 Acquired US part NFI converted from $1,199 fabricator in 2010 IDS to Common Share $984 $926 $865 $319 $318 $315 $289 $22 $151 $107 $97 $95 $80 $61 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 LTM Revenue ($M) Adj. EBITDA ($M) See “Non - IFRS measures” under forward looking statements at the end of this presentation 1) 2) Pro-forma combined business for the period October 1, 2018 to September 29, 2019 ADL information related to the periods before the Acquisition Date are based on audited financial statements of ADL provided to NFI, which were prepared on the basis of UK GAAP. NFI has not independently verified such statements. ADL’s reported results above have been conformed to IFRS. 5 3) Only Q1, Q2 and Q3 2019 figures included within Q3 2019 LTM reflect the adoption of IFRS 16
A DIVERSE BUSINESS MODEL Q3 2019 LTM Revenue By Customer (1) By Segment (1) By Product (1) Public Motor 75% Coaches Manufacturing Transit Aftermarket 25% 85% Buses 15% 73% Private 25% Medium Duty and Low-Floor Cutaway 2% (1) ADL revenue only included for the period of May 28 to September 29, 2019. ADL tends to service private customers in the UK and Hong Kong markets, while servicing public customers in North America, Singapore and New Zealand. On a pro- forma basis including ADL pre-acquisition figures for the Q3 2019 LTM period the public private revenue split would be approx. 70% / 30% 6
MOVEMENT TO A GLOBAL BUS BUSINESS Canada 3 manufacturing facilities 6 parts and service facilities United Kingdom 4 manufacturing facilities 3 parts and service facilities China Zuhai - 3 rd party manufacturing Germany USA Hong Kong – APAC Head Office 1 parts and service facility 6 manufacturing facilities 15 parts and service facilities Singapore 1 parts and service facility Mexico Malaysia 1 parts and service facility 3 rd party manufacturing Latin America Strategic Partnership with New Zealand 1 parts and service facility 7
MOVEMENT TO A GLOBAL BUS BUSINESS Q3 2019 LTM Pro-Forma Revenue by Geographic Region (1) • Leadership positions in Canada, United States, UK, New Zealand and Hong Kong • Vehicles present in 10 different jurisdictions • UK and 20% of revenue now derived from outside of Europe Canada and the US 15% • Diversified business model helps counter North America market specific cyclicality 80% APAC • and ADL will grow its European business with Other landmark BVG Berlin contract, starting to 5% significantly contribute in 2021 1) Pro-forma combined business for the period October 1, 2018 to September 29, 2019 all ADL information related to the periods before the Acquisition Date (May 28, 2019) are based on audited financial statements of ADL provided to NFI, which were prepared on the basis of UK GAAP. NFI has not independently verified such statements. ADL’s reported results above have been conformed to IFRS. 8
NFI TARGET MARKETS Canada and U.S. Motor Coach Market (2) Canada and U.S. Transit Market (1) 6,504 6,336 6,236 6,032 5,933 5,816 5,795 5,388 5,373 5,347 5,284 5,212 5,154 5,128 5,109 5,055 5,009 5,010 4,723 4,333 4,047 3,001 2,819 2,485 2,470 2,385 2,357 2,324 2,305 2,274 2,092 2,048 1,918 1,852 1,825 1,783 1,756 1,648 1,581 1,510 1,479 1,341 1,184 Other Markets UK Bus and Coach Market Est. Annual Deliveries (4) 4,511 4,323 4,361 4,232 Canada and U.S. Cutaway and Medium Duty 17,000 3,993 4,009 3,811 3,833 3,685 3,440 3,391 3,226 3,213 South America 30,000 Europe (excl. UK) 30,000 Asia Pacific (excl. China) 25,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (3) Source: Society of Motor Manufacturers and Traders reported data. Historical data may include mini-buses, a (1) Source: Management Estimates and data reported to Metro Magazine segment in which ADL does not participate 9 (2) Source: American Bus Association reported data in combination with Management Estimates (4) Source: Management Estimates
BACKLOG IS A POSITION OF STRENGTH Book-to-Bill (New Firm Orders plus Options Converted / Deliveries) (1) 90% 11,594 EUs 5,000 160% Q3-19 LTM Total Backlog at Sept. 30, 2019 4,500 140% 4,000 Book to Bill ratio (1) (Firm Orders and Options) (1) 120% 3,500 100% 3,000 2,500 80% 4,907 EUs 27,495 EUs 2,000 60% 1,500 40% 1,000 20% Total Bid Universe (1) Active Bids at Sept. 30, 2019 500 - 0% (Bids in Process and Submitted) (1) 2014 2015 2016 2017 2018 Q3 2019 LTM LTM New Orders (EUs) LTM Deliveries (EUs) LTM Order Intake / Deliveries Total Backlog (Firm and Option EUs) (1) Option History, Conversion and Current Status (EUs) (1) ADL Q3 2019 LTM Conversion was 78% ARBOC Public backlog backlog added in Q4-17 added in Q4-17 MCI Public backlog 2,500 90% 12,000 81% 79% added in Q4-15 73% 71% 80% 10,000 2,000 70% 54% 8,000 60% 1,500 50% 6,000 40% 1,000 4,000 30% 20% 500 2,000 10% 0 - 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 Firm Option Options expired Options exercised Current option expiry Annual conversion rate (1) Data includes ADL from the period of June 30, 2019 onwards 10
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