Slide 1: NFI Investor Update Q1-2016
0 NFI Investor Update Q1-2016 (TSX: NFI, TSX: NFI.DB.U) June 16, 2016 North America’s leading Transit Bus Manufacturer and Parts Supplier North America’s leading Motor Coach Manufacturer and Parts Supplier Forward Looking Statements and Non-GAAP Measures are defined in APPENDIX A.
Slide 2: Company Overview
1 Company Overview Q1-16 LTM Highlights: Revenue: US $1.71 B Adj EBITDA: US $188.2 M Return on Sales: 11.0% • North America’s #1 Transit Bus & Motor Coach manufacturer and parts supplier with the leading installed base of ~50% of transit buses and Net Debt: $640 M motor coaches currently in service
Slide 3: Strategic Execution has delivered significant Shareholder Return
2 Strategic Execution has delivered significant Shareholder Return Total Return(1) Key Milestones 600.0 NFI's first acquisition enhanced 553.0 part fabrication capability and capacity in 2010 500.0 19.9% equity investment in NFI by a leading global bus and 400.0 coach body manufacturer Total Return
Slide 4: #1 Market Share in Transit Bus
3 #1 Market Share in Transit Bus Heavy-Duty: Xcelsior® Medium-Duty: MiDi® Launch in 2009 based on >20 years experience with JV with Alexander Dennis (UK) to introduce MiDi® to low floor transit buses North America in 2014 Offered in 35’, 40’, and 60’ lengths 30’ and 35’ low-floor medium duty bus, te
Slide 5: Transit Bus Market Segments in Canada and US
4 Transit Bus Market Segments in Canada and US 8000 Market Segments and 24 of the 25 largest Transit Agencies Other Orion New Flyer NABI primary targets 7000 operate NF supported transit buses 6000 Metropolitan Urban Municipal 5000 Fleets Fleets Fleets 900+ Operators 17 operators 200 operators 39% o
Slide 6: #1 Market Share in Motor Coaches
5 #1 Market Share in Motor Coaches New Coach – Private New Coach – Public Pre-Owned Coach Targets the mid-range to luxury segments Targets the mid-range segment Trade-in option to support new coach sales J Model is the #1 selling coach in the N.A. “Buy America” compliant Coaches are refurbished at M
Slide 7: Motor Coach Market Segments in Canada and US
6 Motor Coach Market Segments in Canada and US Market Segments and primary targets Tour & Conversion Transit Line Haul Charter 12% of 34% of 2% of 52% of installed fleet installed fleet installed fleet installed fleet Public Private Private Private Source: MCI Database & Management Estimates
Slide 8: Annual Deliveries and Market Demand
7 + Annual Deliveries and Market Demand Transit Bus EUs delivered in Can/US Motor Coaches delivered in Can/US 6236 7000 7000 6032 5933 5816 5388 5373 5347 5284 5212 6000 5154 6000 5128 5109 5065 5010 5009 4797 4723 4333 5000 4047 5000 4000 4000 Total 2267 Industry 3000 2457 2437 12882048 1920 105718
Slide 9: Combined Book-to-Bill and Backlog
8 + Combined Book-to-Bill and Backlog NFI/MCI Book-to-Bill >100% for 13 of last 14 Quarters Total Backlog (Firm and Options) Includes MCI backlog Note: US Customer deferred Order was removed from backlog IN 2013 following 5 years of inaction.
Slide 10: Company Strategy: Optimize, Defend, Diversify & Grow
9 + Company Strategy Our Facilities, Our Market Our Business Our Revenue, Processes & Leading Positions and Revenue EBITDA and Products in Bus/Coach/Parts Stream CashFlow Optimize, Defend, Diversify & Grow 1. Offer Canadian and US operators the best buses, services and value in the industry Migrate
Slide 11: The Industry's most comprehensive Parts & Support Services
10 + The Industry’s most comprehensive Parts & Support Services Aftermarket Parts Product Support Services Widest transit bus and motor coach product assortment Publications: Wide range of customized parts, and industry leading distribution network with shortest maintenance and operational documenta
Slide 12: Manufacturing, Parts & Service Footprint
11 + Manufacturing, Parts & Service Footprint MCI - Winnipeg, MB NFI - Winnipeg, MB Parts Fabrication, MCI D Model Shell Assembly Parts Fabrication and Bus Shell Assembly Complete J Model manufacture New Product Development New Product Development Parts Distribution AB Montreal, PQ SK MB MCI Service
Slide 13: Environmental Committed to Propulsion Options
12 + Environmental Committed to Propulsion Options Clean Diesel Natural Gas Electric-Trolley Hybrid-Electric Battery-Electric Clean Natural Electric Hybrid All Diesel Gas Trolley Electric Electric Xcelsior MiDi D Model J Model Additional propulsion options currently being evaluated for NFI MiDi and
Slide 14: Financial Performance and Outlook
13 + Financial Performance and Outlook Sales ($M US) Adj EBITDA ($M US) Return on Invested Capital ROIC = Net operating profit after tax Average invested capital for the period 2016 Volume Guidance: 14.0% 13.0% 900 Total expected NFI/MCI annual deliveries : 12.2% 800 12.0% 8.5% 700 2015A = 3,265 EUs
Slide 15: Cash Flow Performance
14 + Cash Flow Performance 2016 Q1 LTM Adjusted EBITDA to Free Cash Flow ($M) 188.2 Millions 200 180 36.6 157.5 160 16.9 140 120.9 120 40.9 100 7.3 2.1 80 60 40 20 - Free Cash Flow and Dividends ($M C)
Slide 16: Balance Sheet and Total Leverage
15 + Balance Sheet and Total Leverage
Slide 17: Investment Thesis
16 + Investment Thesis North Americas’ #1 heavy duty transit bus brand, #1 motor coach brand and #1 aftermarket parts and service supplier Leading Share in >70,000 vehicles (transit buses and motor coaches) currently in service with approx 50% share of Diversified Markets Canadian and US installed b
Slide 18: Forward Looking Statements, Financial Terms, Definitions and Conditions
17 APPENDIX A + FORWARD LOOKING STATEMENTS, FINANCIAL TERMS, DEFINITIONS AND CONDITIONS FORWARD LOOKING STATEMENTS This investor presentation contains forward-looking statements relating to expected future events, including the integration of the acquired business into New Flyer’s existing business
Slide 19: Canadian and US Bus Market Overview
18 APPENDIX B Canadian and US Bus Market Overview Approx Annual Primary Bus Type Deliveries (EUs) Manufacturers School Bus ~30,000 - 35,000 Cutaways (Truck Chassis based) ~15,000 - 18,000 Medium Duty Transit and Shuttle ~400 - 500 Heavy Duty Transit EU’s ~5,200 - 5,500 (single and articulated) Motor