NFI:TSX INVESTOR PRESENTATION January 2019 Leader in Transit - PowerPoint PPT Presentation

NFI:TSX INVESTOR PRESENTATION January 2019

Leader in Transit Buses, Motor Coach & Aftermarket Target 2,845 1,065 545 $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) Units in Service >44,000 ^ >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 * 2019 expected deliveries in Equivalent Units (EU) ** 2018 Q3 last twelve months (LTM) revenue See Appendix for Forward Looking Statements and Financial Terms, Definitions and Conditions ^ Includes New Flyer and acquired entities (Orion and NABI) buses + Revenue per EU based on the 39 week period ended September 30, 2018 (2018 YTD) deliveries 2

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 $318 $326 $289 $151 $107 $97 $95 $80 $61 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 LTM Revenue ($M) Adj. EBITDA ($M) 3

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 4

Financial Performance Sales ($M US) Adjusted EBITDA ($M US) 13.4% 13.0% 12.7% $327 $318 $2,512 $2,382 9.8% $2,274 $383 $74 $289 $72 $369 $383 7.4% $76 $1,539 $1,451 $151 $322 $319 $107 $2,128 $252 $61 $246 $2,013 $1,891 $181 $50 $1,217 $1,132 $90 $57 2014 2015 2016 2017 2018 Q3 LTM 2014 2015 2016 2017 2018 Q3 LTM Manufacturing Aftermarket Adj. EBITDA Margin Manufacturing Aftermarket Earnings per Share (EPS) and Adj. EPS ($ US) Return on Invested Capital ($M US) 15.8% $3.23 14.8% $3.07 $3.06 $3.05 14.3% 12.3% $2.15 $2.10 8.6% $1,381 $1.24 $1,189 $1,178 $0.97 $0.72 $0.48 $711 $691 2014 2015 2016 2017 2018 Q3 LTM 2014 2015 2016 2017 2018 Q3 LTM Average Invested Capital ROIC Earnings per Share (basic) Adjusted Earnings per Share (basic) 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* 6,336 6,236 6,032 5,933 5,816 5,795 74% 5,533 5,388 5,347 5,284 69% 5,212 5,154 5,109 5,128 5,065 5,009 5,010 4,797 60% 62% 63% 63% 4,723 60% 62% 4,333 57% 56% 4,047 51% 52% 56% 50% 44% 46% 43% 42% 48% 3,001 37% 39% 2,819 44% 44% 43% 42% 41% 2,485 2,471 2,385 38% 38% 2,324 37% 37% 2,357 37% 36% 37% 35% 34% 35% 2,092 2,274 2,048 1,918 32% 1,852 1,825 1,756 1,783 30% 1,648 1,581 1,510 1,479 26% 1,341 1,184 19% 20% 25% Metropolitan Urban Municipal Limo Employee Line Haul/Fixed Tour & Charter Public Transit 200 operators 900+operators 6% of 20 operators Shuttle Route 43% of installed fleet 20% of installed fleet 39% of installed fleet 33% of installed fleet 28% of installed installed 2% of 29% of installed fleet 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* Public Bid Universe & Active Opportunities (EUs)* 25,000 20,000 20% 3% 15,000 6% 6,300EU 10,000 43% 28% 5,000 - Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Estimated active North America Transit Bus Fleet* Bids in Process Bids Operator Submitted Forecasted 5 year Others buy** EUs 670 2,061 20,694 53% 21% 9% 17% * 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 Orion Parts and NABI acquired by NFI in 2013 discussions directly with individual U.S. and Canadian transit authorities 88,000 BUSES IN SERVICE ^ Sourced from APTA Public Transportation Factbook 2016 * Sourced from New Flyer database and Management estimates 7

The Motor Coach Leader Motor Coach Market Share 2017* Motor Coach Market by Segment (2017 deliveries = ~2,500 Units)* Mexico Quebec and New York Owned by Volvo Truck & Bus Limo/Conversion Germany 10% 26% Owned by Daimler AG and imported by REV Group Tour/Chart Public/Tra 1% er nsit 36% 7% 18% Turkey ~2,500EU ~2,500 Units Owned by Sabanchi Group 43% Employee MCI Share increased 23% Shuttle by 4% in 2017 9% Belgium & Macedonia Line Haul / Negligible Deliveries to date Privately owned Fixed Route 27% Spain US Active North America Motor Coach Fleet 51% 24% 19% 6% 55,000 UNITS * Source: MCI Database and Management estimates 8

Innovator in Low-Floor & Medium Duty Buses North American Cutaway Market (2017 ~15,00 units)* North American Cutaway, Medium Duty and Trolley Annual Demand ~16,000 Units* Overall Cutaway Market Low Floor Cutaway Market 9,100 15,000 EU 12% 30% 21% 5,175 Equess targeting ~550 Units growth in 4% ARBOC opportunity this 64% to gain share with 2% market 67% customer transition Disruption opportunity for to low-floor cutaway 1,270 ARBOC 300 Vehicle High-floor with lift Small Cutaway Medium Cutaway Medium Duty Transit Trolley High-floor without lift Type Bus Life 4 year 5 to 7 year 7 to 10 year 7 years Low floor – other Low floor cutaway ARBOC Spirit of Spirt of Freedom Spirt of Liberty Spirit of America Models Independence and Mobility and Equess Competition Champion, StarCraft, Goshen, Vicinity, ADL, Hometown Trolley Ekhart Coach, Glaval El Dorado * Source: ARBOC Management estimates 9

Industry’s Most Comprehensive Parts Offering  Largest parts and service provider in the industry, providing nearly $400 million in parts annually to major U.S. transit agencies  Added value through unique offerings (Kits, Mid-life upgrade programs, Vendor Managed Inventory (VMI), KanBan, etc.)  Secured six vendor managed inventory programs during 2018 YTD. Expected to provide positive benefit to NFI Parts business in 2019 and beyond  Expertise and direct access to over 250 bus and coach engineers, which is critical to cost-effective and timely parts procurement, quality and availability  Website offering state of the art on-line sales and distribution features  Best-in-class training and publications – MCI Academy accredited by the Automotive Service Excellence (ASE) & recipient of Grand National Excellence in Training Award from ASE Training Managers Council (ATMC) 10

Significant Backlog – Solid Foundation, Position of Strength Book-to-Bill (new firm plus option orders divided by deliveries) 7,000 180% 160% 10,833 EU 87% ~2.4x 6,000 140% 5,000 120% Q4-18 LTM 4,000 Total Backlog at Dec. 31, 2018 Total Backlog EUs to 100% 80% Book to Bill ratio 3,000 (Firm Orders and Options) Annual Production 60% 2,000 40% 1,000 20% - 0% 2014 2015 2016 2017 2018 LTM New Orders (EUs) LTM Deliveries (EUs) LTM Order Intake / Deliveries Total Backlog (Firm and Option EUs) Option History, Conversion and Current Status (EUs) ARBOC Public backlog 2,500 added in Q4-17 81% Firm = 3,649 EUs Options = 7,184 EUs 79% 12,000 MCI Public backlog 73% 71% added in Q4-15 2,000 10,000 54% 8,000 1,500 6,000 1,000 4,000 500 2,000 0 - 2014 2015 2016 2017 2018 2019 2020 2021 2022 Options expired Options exercised Current option expiry Annual conversion rate Firm Deferred Order Firm Option 11