Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Investor Presentation (March 2021)
22 slides from Blue Bird's investor presentation, March 2021
Slide 1: Blue Bird Corporation Investor Presentation March 2021
Nasdaq: BLBD Blue Bird Corporation Investor Presentation March 2021
Slide 2: Agenda
Agenda Executive Summary School Bus Industry Overview Company & Product Highlights Outlook 2
Slide 3: Executive Summary
Executive Summary ❖ Schools beginning to reopen; good news for bus orders ❖ Aging school bus fleet; >150,000 buses need replacing ❖ Leader in alternative power; #1 in electric & propane school buses ❖ ~50% of Blue Bird sales are non-diesel; <10-20% for competitors ❖ Government’s commitment to electr
Slide 4: School Bus Industry Overview
School Bus Industry Overview 4
Slide 5: School Bus Industry Products
School Bus Industry Products Type C Buses Type D FE Buses (Conventional) (Front Engine, Transit-Style) Seating Capacity: 36-83 Seating Capacity: 54-90 Fuel Types: Diesel, Propane, CNG, Fuel Type: Diesel Gasoline, Electric Type D RE Buses Type A Buses (Rear Engine, Transit-Style) Seating Capacity: 10
Slide 6: Industry Highlights
Industry Highlights OEMs Thomas Blue Bird 600k+ IC School Bus Customers Attractive Industry Attributes ~3,400 High barriers to entry Contractors Highly specialized product Complex state and customer requirements Dealer and service network Customer relationship driven business ~10,000 Demand Drivers
Slide 7: Type C & D School Bus Industry
Type C & D School Bus Industry Mean: 30,800 1995 2000 2018 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 2020 Historical Registrations Long-term Avg. ('85-'19) Source: R.L. Polk New Regi
Slide 8: Fleet Age Profile Supports Industry Levels
Fleet Age Profile Supports Industry Levels ~611K School Buses on the Road as of the end of FY2020 35,000 30,000 48%+ of the fleet is 11 years and older 25,000 20,000 15,000 10,000 5,000 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 ~292K buses in service for more than 10 years supports
Slide 9: Company & Product Highlights
Company & Product Highlights 9
Slide 10: Dedicated Manufacturing Footprint
Dedicated Manufacturing Footprint Micro Bird JV Facility (Drummondville, Quebec, Canada) Micro Bird JV Facility Parts Distribution Center Parts Distribution Center (Drummondville, Quebec) (Delaware, Ohio) (Delaware, Ohio) Design, fabrication, and Electronically guided, houses Commentary assembly of
Slide 11: Our Exclusive Franchised Dealer Network
Our Exclusive Franchised Dealer Network More than 85% of Blue Bird dealers dedicated to bus sales and service 11
Slide 12: Transformational Initiatives Drive Down Cost
Transformational Initiatives Drive Down Cost FY2018 FY2019 FY2020+ Phase 1 Phase 2 Phase 3 Purchased Material Purchased Material Purchased Material – Commercial – Commercial – Commercial – Sourcing – Sourcing – Sourcing – Initial design – Design Build and Launch New Paint Facility New Paint Facility
Slide 13: Alt-Power Leadership – Driving to Low & Zero Emissions
Alt-Power Leadership – Driving to Low & Zero Emissions FY2021 YTD1 Alternative-Power Bus Highlights ▪ 50% mix of sales and order backlog, up 5 pts Increasing Alt. Power Mix ▪ 107 Electric buses sold or in backlog, up 24% Future Growth Led by Electric and Propane ▪ 59 customers tried new Alt-Fuel opt
Slide 14: Blue Bird's EV Plan – Focused on Growth
Blue Bird’s EV Plan – Focused on Growth The EV Ecosystem Leadership in Electric School Bus Electric Vehicles bring new opportunities and ❖ Full line-up of Type A,C&D buses challenges for OEMs – carefully selected partnerships are key to leadership in total ❖ Selecting partners in the Ecosystem to cu
Slide 15: New Administration's Support for Schools and EV
New Administration’s Support for Schools and EV ❖ Calling on Congress to provide at least $130 billion in dedicated funding to K-12 schools, as well as $350 billion in flexible state and local aid that would help districts avoid lay-offs and close budget gaps. (1/21/21) ❖ “It should be a national pr
Slide 16: School Bus & Commercial Classifications
School Bus & Commercial Classifications School Bus Commercial Classification Classification Type C Buses (Conventional) Seating Capacity: 36-83 Class 5, 6 & 7 Fuel Types: Diesel, Propane, CNG, Gasoline, Electric Type D RE/FE Buses (Transit-Style) Class 6 & 7 Seating Capacity: 54-90 Fuel Types: Diese
Slide 17: Outlook
BLUE BIRD, BUILT TO TAKE ON TOMORROW.
Slide 18: Outlook: Well-Positioned for Schools Resuming
Outlook: Well-Positioned for Schools Resuming ❖ Blue Bird Focus ▪ Executing margin-growth strategy – increase bus selling price, lower cost and increase mix of alternative-powered. New products and features planned ▪ Single shift operation launched smoothly, improving cost, efficiencies and quality;
Slide 19: FY2021 Guidance: Planning Prudently, Operating Aggressively
FY2021 Guidance: Planning Prudently, Operating Aggressively FY2020 FY2021 B/(W) $ Millions Guidance Net Revenue $879 $750 - $975 nnnllml $(129) - $96 Adj. EBITDA1 $55 $40 - $65 $(15) - $10 Adj. Free Cash Flow1 $(1) $(5) - $20 $(4) - $21 ❖ FY2021 Guidance uncertain; well positioned to capitalize on r
Slide 20: EBITDA Margin Growth Back on Track in FY2022
EBITDA Margin Growth Back on Track in FY2022 Adj. EBITDA ($Mils.) $120 COVID-19 Impact 20% 18% $100 16% $82 $80 $70 14% $60 $55 12% $50 10% $40 8% 8% 6% 6% $20 7% 6% $- 4% FY2018 FY2019 FY2020 FY2021G FY2022E FY2023E Midpoint Adj. EBITDA Margin Industry expected to rebound in FY2022 as schools resum
Slide 21: Conclusion – Exciting Outlook for Blue Bird
Conclusion – Exciting Outlook for Blue Bird ❖ Schools beginning to reopen; good news for bus orders ❖ Aging school bus fleet; >150,000 buses need replacing ❖ Leader in alternative power; #1 in electric & propane school buses ❖ ~50% of Blue Bird sales are non-diesel; <10-20% for competitors ❖ Governm
Slide 22: Thank You!
THANK YOU! S BLUE BIRD.