Nfi Group Inc. · TSX:NFI
Nfi — Investor Presentation (March 2020)
18 slides from Nfi's investor presentation, Mar 30, 2020
Slide 1: Investor Presentation AltaCorp Capital
MARCH 30, 2020 Investor Presentation AltaCorp Capital
Slide 2: Who is NFI?
WHO IS NFI? Bus Design and Manufacture Part Fabrication Aftermarket and Service Carfair Composites is a leader in North America’s most Founded in 1930, the North comprehensive parts fiber-reinforced plastic (FRP) American Leader in Heavy-Duty organization, providing design and composites Transit bus
Slide 3: Our Mission, Our Vision
OUR MISSION OUR VISION To design and deliver To enable the future of exceptional transportation mobility with innovative solutions that are safe, and sustainable solutions accessible, efficient and reliable
Slide 4: Proven Strategic Growth and Diversification
PROVEN STRATEGIC GROWTH AND DIVERSIFICATION • Proven LEAN operations track record • Demonstrated margin expansion Acquired US OEM of low-floor cutaway and medium-duty buses • Strategic part fabrication capability • Accretive acquisitions • Proven ability to integrate Acquired assets of US Fiberglass
Slide 5: A Diverse Global Business Model
A DIVERSE GLOBAL BUSINESS MODEL 2019 Pro-Forma Revenue By Customer(1) By Region(1) By Product(1) Transit Buses Public 64% 70% APAC 4% North America 81% UK and Europe Motor 15% Coaches Private 20% 30% Medium Aftermarket Duty and 14% Low-Floor Cutaway 2% (1) Pro-forma combined business for the period
Slide 6: A Global Bus Business
A GLOBAL BUS BUSINESS Canada 3 manufacturing facilities 6 parts and service facilities United Kingdom 4 manufacturing facilities 3 parts and service facilities China Zuhai - 3rd party manufacturing USA Germany Hong Kong – APAC Head Office 6 manufacturing facilities 1 parts and service facility 15 pa
Slide 7: NFI Target Markets
NFI TARGET MARKETS Canada and U.S. Transit Market(1) Canada and U.S. Motor Coach Market(2) 6,753 2,470 6,504 2,385 6,336 2,357 6,236 2,324 2,305 2,274 6,032 5,933 5,795 2,092 2,053 2,048 5,388 5,373 5,284 5,212 5,154 1,918 5,128 5,109 5,055 5,010 5,009 1,852 1,825 1,783 4,723 1,756 1,648 4,333 1,581
Slide 8: Backlog is a Position of Strength
BACKLOG IS A POSITION OF STRENGTH Book-to-Bill (New Firm Orders plus Options Converted / Deliveries)(1) 6,000 160% 10,742 EUs 85% 140% Total Backlog at Dec. 29, 2019 Q4 2019 LTM 5,000 120% (Firm Orders and Options)(1) Book to Bill ratio(1) 4,000 100% 3,000 80% 2,000 1,000 60% 40% 20% 4,694 EUs 27,64
Slide 9: Historic Financial Performance
HISTORIC FINANCIAL PERFORMANCE Revenue by Segment Adjusted EBITDA and % Margin 2015 – 2019(1) $2,893 2015 – 2019(1)(2) $2,519 $417 $2,382 13.4% $2,274 $377 12.7% 12.5% $369 $383 11.1% 9.8% $318 $322 $1,539 $315 $289 $72 $75 $322 $74 $2,476 $2,142 $76 $1,891 $2,013 $151 $1,217 $61 $246 $242 $256 $181
Slide 10: Strong Free Cash Flow Generation
STRONG FREE CASH FLOW GENERATION Free Cash Flow, Cash Capital Expenditures and ROIC 2015 – 2019(1) CASH FLOW ($MM) 15.8% 14.3% 13.7% 2018 2019(1) 12.3% $165.2 $161.2 $159.7 $160.4 Adjusted EBITDA $315.4 $322.2 9.7% Interest Expense ($23.5) ($50.5) Current Income Tax ($56.3) ($61.3) Cash Capital Expe
Slide 11: Impact of COVID-19 on the Business
IMPACT OF COVID-19 ON THE BUSINESS Supply Chain Transit Production Deliveries Production staff Private Coach Parts and Potential for Potential idled due to health inspection and Significant Service disruption from and safety slowdown in Continues under government customer concerns and to acceptance
Slide 12: Immediate Response to COVID-19
IMMEDIATE RESPONSE TO COVID-19 Production Idling Cash Management • Measure to ensure health and safety of • Implemented freeze of Hiring and 2020 production staff salary increases • ~85% of NFI’s costs of goods are variable • Suspended payment of Board Director related to direct production Fees • Wi
Slide 13: Immediate Response to COVID-19
IMMEDIATE RESPONSE TO COVID-19 • Working with Banking Partners o Working with bank partners to obtain covenant relief and seek expansion of NFI’s existing credit facility and/or entry into new credit facilities • Stress Testing o Forecasting multiple scenarios – management expects current liquidity
Slide 14: Government Support for Transit
GOVERNMENT SUPPORT FOR TRANSIT • Majority of public bus procurements are 80% funded through FTA • Announced $25B in emergency operational relief funds through the Coronavirus Aid, Relief and Economic Security (CARES) Act • Expectations for additional stimulus funds following COVID-19 pandemic • Libe
Slide 15: Why Invest in NFI
WHY INVEST IN NFI Track Record Our Differentiators • Trusted business partner with 422 years of combined bus and • Exclusively focused on bus & coach with market leading motor coach design and manufacturing experience positions in multiple jurisdictions • 5 year Revenue CAGR of 17.1% and Adj. EBITDA
Slide 16: Non-IFRS Measures
NON-IFRS MEASURES • 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 adjustments include ga
Slide 17: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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. The words “believes”, “anticipates”, “
Slide 18: Investor Presentation AltaCorp Capital
MARCH 30, 2020 Investor Presentation AltaCorp Capital