Nfi Group Inc. · TSX:NFI
Nfi — Investor Presentation (May 2019)
22 slides from Nfi's investor presentation, May 2019
Slide 1: NFI:TSX Investor Presentation
NFI:TSX INVESTOR PRESENTATION May 2019 New Flyer’s Xcelsior H2 Fuel-Cell Electric Heavy-Duty bus
Slide 2: Leader in Transit Buses, Motor Coach & Aftermarket
Leader in Transit Buses, Motor Coach & Aftermarket Q1 2019 LTM Equivalent Units (EUs) Deliveries Q1 2019 LTM Revenue by Product 983 Motor coach $553 Motor coach Heavy-duty transit bus (new and pre-owned) 4,223 EU $2,507M* $1,527 $38 437 2,803 Low-floor cutaway and medium duty bus $368 Low-floor cuta
Slide 3: Strategically Accretive Acquisitions and Growth
Strategically • Proven LEAN operations track record • Demonstrated margin expansion Acquired US OEM of low-floor cutaway and medium-duty buses • Accretive acquisitions • Exceptional ability to integrate Acquired assets of US Fiberglass supplier • Strategic part fabrication Acquired US manufacturer o
Slide 4: Why Invest In NFI?
Why Invest In NFI? North American leader in heavy-duty transit, motor coach, low-floor cutaway and aftermarket parts Trusted business partner for over 87 years delivering and standing behind reliable products. Focused on total cost of ownership Five year Q1 2019 LTM revenue compound annual gro
Slide 5: Financial Performance
Financial Performance Revenue by Segment 2014 – Q1 2019 LTM Adjusted EBITDA and Adjusted EBITDA Margin by Segment 2014 – Q1 2019 LTM 13.4% 12.7% 12.5% 12.0% $2,519 $2,507 $2,382 $318 $315 $2,274 $302 $377 $368 9.8% $369 $383 $72 $74 $289 $74 7.4% $1,539 $76 $1,451 $322 $319 $151 $2,142 $2,140 $2,013
Slide 6: Heavy Duty Transit and Motor Coach Markets
Heavy Duty Transit and Motor Coach Markets HD Transit Bus Market – EUs delivered and New Flyer Market Share* Motor Coach Market – Units Delivered in Can/US and MCI Share* 6,504 7,000 7,000 6,236 74% 6,336 6,032 5,933 5,816 69% 5,795 5,373 5,347 6,000 5,284 6,000 5,388 62% 63% 63% 62% 5,154 5,212 5,0
Slide 7: North American Transit Leader
North American Transit Leader HD Transit Bus Market Share – 2018 Deliveries Public Bid Universe & Active Opportunities (EUs)* 30,000 25,000 20% 20,000 4% 4% 15,000 6,504 EU 10,000 43% 5,000 29% ‐ 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
Slide 8: The Motor Coach Leader
The Motor Coach Leader Motor Coach Market Share – 2018 Deliveries Motor Coach 2018 Market Deliveries By Segment Limo 30% 11% Tour/Charter 2% Public/Transit 35% 19% 2,305 Units 2,305 Units 24% 45% MCI Share increased Employee by 2% in 2018 Shuttle 9% Line Haul / Negligible Deliveries to date Fixed Ro
Slide 9: Innovator in Low-Floor Cutaway & Medium-Duty Buses
Innovator in Low-Floor Cutaway & Medium-Duty Buses North American Cutaway Market (2018 ~16,000 units)* North American Cutaway, Medium-Duty and Trolley Annual Demand ~16,000 Units* Overall Cutaway Market Low-Floor Cutaway Market 9,100 16,000 EU 20% 5% 30% 5,175 Equess ~670 Units targeting growth in 4
Slide 10: Industry's Most Comprehensive Parts Offering
Industry’s Most Comprehensive Parts Offering Largest parts and service provider in the industry, providing nearly $400 million in parts annually to major U.S. transit agencies Added value through unique offerings (Kits, Mid-life upgrade programs, Vendor Managed Inventory (VMI), KanBan, etc.) S
Slide 11: Significant Backlog – Solid Foundation, Position of Strength
Significant Backlog – Solid Foundation, Position of Strength Book-to-Bill (new firm plus option orders divided by deliveries 7,000 180% 10,587 EU 93% ~2.5x 6,000 160% 140% 5,000 120% 4,000 100% Total Backlog at Mar. 31, 2019 Q1-19 LTM Total Backlog EUs to 80% 3,000 (Firm Orders and Options) Book to
Slide 12: Strong Balance Sheet and Cash Flow Generation
Strong Balance Sheet and Cash Flow Generation Q1 2019 LTM Adjusted EBITDA to Free Cash Flow Reconciliation ($M) Free Cash Flow and Dividends (C$M) $216.3 49.6% $206.9 $210.5 $201.2 42.9% 47.6% 36.8% 31.2% $108.3 25.0% $95.7 $90.3 $76.1 $65.5 Total Leverage Ratio^ vs Credit Covenant $54.0 4.0 4.0 3.7
Slide 13: Capital Allocation: 2012 to Q1 2019 LTM
Capital Allocation: 2012 to Q1 2019 LTM business and growth Capital Expenditures Maintenance capital, facility upgrades, LEAN implementation, Invest in current $252 USD IT harmonization, insourcing and parts fabrication Acquistions $676 USD Dividends increased by 39.5% in May 2017, by 15.4% in May 2
Slide 14: Leader in Zero Emission Buses
Leader in Zero Emission Buses Battery-Electric Fuel Cell Electric Trolley Electric Electric Coach (testing) • Common Xcelsior Platform available in 35-foot, 40- • Support mobility projects from start to finish, foot and 60-foot lengths • Focus on energy management optimization, • Industry leading ra
Slide 15: Investing for Growth and Margin Improvement
Investing for Growth and Margin Improvement New Products Technology New MCI D Models 60’ fuel cell and battery electric webstore Spirit of Equess Optimize Defend AV ADAS Diversify Grow KMG Fabrication (Shepherdsville) Winnipeg / Anniston Expansion Part Fabrication 15
Slide 16: Proud of our History, Excited About our Future
Proud of our History, Excited About our Future 1. Execute on 2019 Annual Operating Plan focusing on customer satisfaction, market share & EBITDA performance 2. Invest in IT Harmonization (Oracle) at MCI 3. Continue investing in MCI recovery, new models and common line (D and J coach) production 4. A
Slide 17: Appendix
17 Appendix NFI Group
Slide 18: Forward Looking Statements
Forward Looking Statements FORWARD LOOKING STATEMENTS • Certain statements in this press release 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. The word
Slide 19: NFI's 2018 Q4 and Fiscal 2018 Results
NFI’s 2018 Q4 and Fiscal 2018 Results Quarterly Analysis: Revenue down 2% with growth in manufacturing from transit bus sales mix and higher volumes, offset by lower coach volumes, ARBOC chassis supply disruption and lower aftermarket volumes due to Daimler’s termination of MCI’s Setra Distributio
Slide 20: Operating Performance Metrics
Operating Performance Metrics Adjusted EBITDA per new EU delivered ($000 US) Aftermarket EBITDA Margin % 21.9% 21.8% (2) 20.6% 69.9 20.6% 20.9% 20.5% 20.3% 65.1 20.2% 65.5 19.9% 62.4 62.3 19.8% 59.8 (1) 19.5% 56.0 57.4 56.5 55.6 54.3 18.6% 18.6% 18.6% 18.8% 18.5% 51.2 (1) (2) 45.3 47.0 17.3% 37.7 16
Slide 21: Environmental Leadership with Propulsion Options
Environmental Leadership with Propulsion Options Clean Diesel Natural Gas Electric Trolley Hybrid Electric Battery Electric/ Fuel Cell Xcelsior 35’, 40’, 60’ D Model 40’, 45’ J Model 45’ with 35’ MCI eCoach launching Q1 2019 Currently Testing Low- Floor Cutaway Medium Duty Transit/Shuttle New Flyer
Slide 22: Group Leadership
Group Leadership Paul Soubry President and CEO Joined in 2009 Janice Harper Chris Stoddart Ian Smart Brian Dewsnup Executive Vice President Human Resources President President President Joined in 1998 Transit Bus Motor Coach NFI Parts Joined in 2008 Joined in 2011 Joined in 2006 Glenn Asham Executiv