Slide 1: Earnings Presentation – 2021 Q3 Results
Earnings Presentation – 2021 Q3 Results November 3, 2021
Slide 2: Cautionary Statement
Cautionary Statement Certain statements in this presentation are “forward looking statements,” which reflect the expectations of management regarding the Company's future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are made as
Slide 3: Key Terms
Key Terms • Buses manufactured by New Flyer and ADL's single and double deck buses are classified as "transit buses". ARBOC manufactures body on- chassis or “cutaway” and "medium-duty" buses that service transit, paratransit, and shuttle applications. Collectively, transit buses, medium- duty buses
Slide 4: NFI is a leading global independent bus and motor coach solution provider
NFI is a leading global independent bus and motor coach solution provider leading the evolution to zero-emission mobility. Market and technology leader in each of our major markets 4 4
Slide 5: We Exist To Move People
We Exist To Move People VISION: To enable the future of mobility with innovative and sustainable solutions. MISSION: To design and deliver exceptional transportation solutions that are safe, accessible, efficient and reliable. WE PLEDGE to be customer focused WE MUST EARN the trust of those we serve
Slide 6: 2021 Q3: Executive Summary
2021 Q3: Executive Summary • We are seeing market recovery with Active Bids up 11% from 2020 Q3; Highest number of EU’s in bids submitted, 6,307 EUs since 2017 Q2 • NFI’s ZEBs are operating or on order in 15 of the top 25 transit agencies in North America and with 10 of the top 15 transit operators
Slide 7: 2021 Q3: Backlog and New Vehicle Deliveries
2021 Q3: Backlog and New Vehicle Deliveries Backlog – Firm & Option Backlog – Timing Backlog – By Product1 LTM 2021 Q3 Option Conversion Rate = 52% Medium- Firm Options Duty and Low-Floor Cutaway 6% 8,882 8,586 8,168 8,103 5,220 Motor 5,279 4,646 4,757 Coach 10% 3,662 3,307 3,522 3,346 Heavy-Duty Tr
Slide 8: 2021 Q3: Income Statement and Balance Sheet
2021 Q3: Income Statement and Balance Sheet 2021 Q3 Performance 2021 Q3 Cash Flow & Liquidity 2020 Q3 2021 Q3 Cash Flow ($M) Sales $663.9M $492.0M 2020 Q3 2021 Q3 $60.9 Adjusted EBITDA $60.9 $31.3 Adjusted Interest Expense ($17.3) ($17.1) EBITDA1 $31.3 9.2% 6.4% Current Income Tax ($8.4) $8.2 ROS RO
Slide 9: NFI Adjusted Effective Tax Analysis
NFI Adjusted Effective Tax Analysis 2021 Q3 2021 YTD Components of Tax Adj. EBITDA $31.3M $138.0M *Tax Variable = 21% - 23% D&A $24.0M $72.0M Interest Expense $17.4M $53.0M Adj. EBT ($10.1M) $13.0M Tax Variable ($2.1M) $2.7M Tax Fixed (Annual) = $8M - $14M Tax Fixed $0.6M $6.3M FX Tax Adjust $2.8M $
Slide 10: 2021 Q3: Net Earnings and Adjusted Net Earnings
2021 Q3: Net Earnings and Adjusted Net Earnings Net Earnings (Loss) ($M) Adjusted Net Earnings (Loss) ($M)1 2020 Q3 ($25) ($0.40) per share 2020 Q3 $6 $0.09 per share 2021 Q3 ($15) ($0.22) per share 2021 Q3 ($11) ($0.16) per share LTM 2020 Q3 ($132) ($2.11) per share LTM 2020 Q3 ($21) ($0.34) per sh
Slide 11: Updated 2021 Guidance Reaffirmed
Updated 2021 Guidance Reaffirmed Revenue • Deliveries impacted by pandemic-related supply chain $2.3 billion to $2.5 billion challenges • Growth driven by market recovery in North American Bus and ZEBs expected to be approximately 20% of 2021 Coach and UK transit manufacturing revenue • ADL’s intern
Slide 12: Continued Public Transit Funding and Financing for ZEBs
Continued Public Transit Funding and Financing for ZEBs $17.6B Green Recovery Funding £5.0B transit and cycling program $14.9B Transit Funding Program £90M SULEBS Rounds 1 and 2 $1.5B Canadian Infrastructure Bank Replacement of 4,000 buses Replacement of 5,000 buses C$34B $100+B £5.1B $100B+ Biparti
Slide 13: Public Market Bid Universe Showing Signs of Recovery
Public Market Bid Universe Showing Signs of Recovery Canada and U.S. Public Market Bid Universe 594 EUs Bids in Process Avg. timeline from bid release to production = 12 to 18 months Bids in Process Bids Submitted 5 Year Forecast 6,307 EUs Bids Submitted 35,000 30,000 19,954 EUs Five-Year Procuremen
Slide 14: Positioned for Growth and Margin Enhancement
Positioned for Growth and Margin Enhancement Recovery, NFI Forward, and Leading the ZEvolution 2020 – 2025 REVENUE ($M) $3,900 to $4,100 $2,896 $2,300 to $2,500 $2,419 13%+ CAGR (2021-2025) 2019 2020 2021 2025 Guidance Target ADJ EBITDA ($M)(1) $400 to $450 $322 $165 to $195 $158 20%+ CAGR (2021-202
Slide 15: NFI Summary and Outlook
NFI Summary and Outlook NFI Forward continues to significantly change the way NFI operates; as volumes Culture and return, we expect significant volume leverage history of innovation Challenging operating environment in the third quarter with COVID-19 impacting operations and the timing of custo
Slide 16: Appendices
Appendices
Slide 17: Appendix: Financial Highlights
Appendix: Financial Highlights $M (except EU and EPS) Q3 YTD 2021 2020 Change 2021 2020 Change Deliveries (EUs) 752 1,317 (42.9%) 2,696 3,141 (14.2%) Revenue $492.0 $663.9 (25.9%) $1,649.0 $1,707.7 (3.4%) Gross Profit $39.4 $46.8 (15.8%) $194.7 $113.1 72.1% Gross Profit % 8.0% 7.0% 1357bps 11.8% 6.6
Slide 18: Appendix: Non-IFRS Reconciliation (2021)
Appendix: Non-IFRS Reconciliation (2021) Reconciliation of IFRS to non-IFRS As of September 26 2021 Second Third In '000 First Quarter Quarter Quarter Full Year Net Sales $ 574,119 $ 582,794 $ 492,038 $ 1,648,951 Net Earnings $ 7,033 $ 2,587 $ (15,415) $ (5,793) % of net sales 1.2% 0.4% -3.1% -0.4%
Slide 19: Appendix: Non-IFRS Reconciliation (2020)
Appendix: Non-IFRS Reconciliation (2020) Reconciliation of IFRS to non-IFRS As of December 27 2020 Second Third In '000 First Quarter Quarter Quarter Forth Quarter Full Year Net Sales $ 710,384 $ 333,334 $ 663,934 $ 711,523 $ 2,419,175 Net Earnings $ (67,239) $ (74,050) $ (24,912) $ 8,465 $ (157,736
Slide 20: Forward-Looking Statements Non-IFRS Measures
Forward-Looking Statements Certain statements in this presentation are “forward-looking statements”, which reflect the current expectations of management regarding the Company's future growth, financial performance and financial position and the Company’s strategic initiatives, plans, business prosp
Slide 21: Appendix: Key Financial Definitions
Appendix: Key Financial Definitions • Adjusted EBITDA: Earnings before interest, income taxes, depreciation and amortization after adjusting for the effects of certain non- recurring and/or non-operations related items that do not reflect the current ongoing cash operations of the Company. These adj
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