NFI:TSX INVESTOR PRESENTATION August 2018
Leader in Transit Buses, Motor Coach & Aftermarket Target 2,774 1,076 500 $378M** 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% 64% (low-floor cutaway) Units in Service >44,000 ^ >30,000 >3,000 7 Parts Distribution Centers and 10 Service Centers in North America Avg. Selling $535,400 $524,000 $79,500 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 Q2 last twelve months (LTM) revenue + Revenue per EU based on the 26 week period ended July 1, 2018 (2018 YTD) deliveries
Strategically • Proven LEAN operations track record Acquired US OEM of low-floor cutaway and medium-duty buses • Demonstrated margin expansion • Accretive acquisitions Acquired assets of US • Exceptional ability to integrate Fiberglass supplier • Strategic part fabrication Acquired Can/US Acquired US manufacturer of HD FRP Supplier transit buses & parts distributor $2,448 $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 $318 $327 $289 $151 $107 $97 $95 $80 $61 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q2 LTM Revenue ($M) Adj. EBITDA ($M) 3
North American Footprint - Best in Class Winnipeg, MB Winnipeg, MB Parts Fabrication Parts Fabrication, Fiberglass Fabrication D Model Shell Assembly AB Bus Shell Assembly J Model manufacture SK MB New Product Development QC New Product Development ON Anniston, AL St Cloud, MN WA Pembina, ND Los Alamitos, CA New Flyer Bus Manufacture New Flyer Bus Manufacture MCI Coach Manufacturing MCI Service Center Parts Fabrication Fiberglass Fabrication ND Fiberglass Fabrication MN Blackwood, NJ Des Plaines, IL Crookston, MN MCI Service Center NY Shepherdsville, KY MCI Service Center New Flyer Bus Completion New Part Fabrication WI Montreal, PQ Dallas, TX PA NJ Renton, WA Jamestown, NY ` MCI Service Center MCI Service Center New Flyer Service Center Part Fabrication/Assembly Hayward, CA Winter Garden, FL OH IN IL CA Arnprior, ON WV MCI Service Center Wausaukee & Gillet, WI MCI Service Center New Flyer Service Center Fiberglass Fabrication KY Ontario, CA Elkhart, IN New Flyer Completion TCB Part Fabrication & Service Center AL Louisville, KY Delaware, OH New Flyer and MCI Parts Distribution NABI Parts Distribution TX FL Brampton, ON Winnipeg, MB New Flyer Parts Distribution New Flyer Parts Distribution Middlebury, IN Cutaway & Medium Duty Fresno, CA Edmonton, AB Manufacture New Flyer Parts Distribution MCI Parts Distribution East Brunswick, NJ MCI Parts Distribution New Flyer Manufacturing MCI Manufacturing New Flyer Service MCI Service NFI Parts Distribution 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
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% 4,047 50% 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 Tour & Charter Employee Line Haul/Fixed Limo Public Transit 200 operators 900+operators 20 operators 43% of installed fleet 6% of Shuttle 20% of installed fleet Route^ 39% of installed fleet 33% of installed fleet 28% of installed installed fleet 2% of 29% of installed fleet fleet installed fleet * Sourced from New Flyer databases and Management estimates 6 ** 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) 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 7
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 Fleet: art 315,000 sq. ft. longer-term transition to 15,000 Shepherdsville, KY Zero Emission Buses US = 7.8 years^ Canada = 7.3 years^ Facility will fabricate parts New Flyer is a leader in 10,000 for New Flyer, MCI, NFI the space with the FAST Act funding in-place Parts & ARBOC strongest track record to 2021 5,000 Exploring other Industry leading Xcelsior FTA funds 80% of a transit insourcing opportunities Charge bus - bus capital cost Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 2017 ZEB Awards Firm & Option EU Bid Universe of 22,150 EUs Bids in Process Bids Operator Submitted Forecasted 5 year buy** EUs 1,319 2,391 18,440 353 406 * 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 8
The Motor Coach Leader Motor Coach Transit Bus Market Share 2017 Mexico Quebec and New York Owned by Volvo Truck & Bus Team of 1,750 employees Germany Supports nearly 30,000 motor coaches in service 26% Owned by Daimler AG and imported by REV Group J Coach for private market and D Coach primarily for public operators 1% Focused on innovation and new designs including D45 CRT LE Coach 7% Turkey and J3500 35’ coach ~2,500EU Owned by Sabanchi Group Numerous operational optimization projects underway including IT 43% harmonization and production line improvements MCI Share increased 23% by 4% in 2017 Two manufacturing sites with 7 service centers Belgium & Macedonia Negligible Deliveries to date Privately owned Spain US Active North America Motor Coach Fleet 51% 24% 19% 4%2% 55,000 UNITS * Source: MCI Database and Management estimates 9
Opportunities for Growth Growth in Employee Innovative New Products eCommerce Disruption Motor Coach Market by Segment (2017 deliveries = ~2,500 Units)* Shuttles & Limo 1 2 3 D45 CRT LE – Traditional line haul and Growing demand for Limo/Conversion revolutionary fixed route operators employee shuttles within 10% improvements to support facing headwinds, but the tech sector expanding mobility for all disruptors in the space beyond the SF Bay area provide numerous Tour/Charter Public/Transit 36% opportunities The J3500, 35’ coach Limo operators increasing 18% offers a smaller but coach purchases, focused common platform Growth of eCommerce on customer experience players may see fleet renewals and increased Electric propulsion Potential tourist demand Employee coach demand in Tour systems provides a ZEB for a more comfortable Shuttle and Charter as well offering to clients and smaller coach 9% Line Haul / Fixed Route 27% 10 * Source: MCI database and Management estimates
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