Slide 1: Earnings Presentation – 2021 Q2 Results
Earnings Presentation – 2021 Q2 Results August 4, 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: We Exist To Move People
We Exist To Move People A leading independent global provider of bus and motor coach solutions 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
Slide 5: 2021 Q2: Executive Summary
2021 Q2: Executive Summary • 2021 YTD results continue to be impacted by COVID-19 related labor and supply challenges • Anticipate supply chain challenges to be transitory, but they are global in nature • Managing logistics, production schedule and risks with top suppliers • Tailwinds: Unprecedented
Slide 6: 2021 Q2: Backlog and New Vehicle Deliveries
2021 Q2: Backlog and New Vehicle Deliveries Backlog – Firm & Option Backlog – Timing Backlog – By Product1 LTM 2021 Q2 Option Conversion Rate = 45% Medium- Firm Options Duty and Low-Floor Cutaway 10,004 6% 8,504 8,586 8,168 5,604 Motor 5,264 5,279 4,646 Coach 11% 4,400 3,240 3,307 3,522 Heavy-Duty T
Slide 7: 2021 Q2: Income Statement and Balance Sheet
2021 Q2: Income Statement and Balance Sheet 2021 Q2 Performance 2021 Q2 Cash Flow & Liquidity 2020 Q2 2021 Q2 Cash Flow ($M) Sales $333.3M $582.8M 2020 Q2 2021 Q2 Adjusted EBITDA ($24.2) $51.9 Adjusted $51.9 8.9% ($14.9) ($16.5) Interest Expense EBITDA1 (7.3%) ROS Current Income Tax $4.5 ($7.8) ($24
Slide 8: NFI Adjusted Effective Tax Analysis
NFI Adjusted Effective Tax Analysis 2021 Q2 Components of Tax Adj. EBITDA $51.9M *Tax Variable = 21% - 23% D&A $23.5M Interest Expense $17.7M Adj. EBT $10.7M Tax Variable $2.3M Tax Fixed (Annual) = $18M - $22M Tax Fixed $1.8M FX Tax Benefit ($2.2M) Variable and Fixed components of tax creates challe
Slide 9: 2021 Q2: Net Earnings and Adjusted Net Earnings
2021 Q2: Net Earnings and Adjusted Net Earnings Net Earnings ($M) Adjusted Net Earnings ($M)1 2020 Q2 ($74) ($1.18) per share 2020 Q2 ($57) ($0.91) per share 2021 Q2 $3 $0.04 per share 2021 Q2 $9 $0.12 per share LTM 2020 Q2 ($108) ($1.74) per share LTM 2020 Q2 ($12) ($0.18) per share LTM 2021 Q2 ($7
Slide 10: NFI Forward: First Year Update
NFI Forward: First Year Update All NFI Forward Initiatives at or above targets: $67M of Adjusted EBITDA and $10M Free Cash Flow (8% to 10% reduction in overheads and SG&A from 2019 Levels) Completed Projects Projects in Progress Streamlining back-office administration Integration of ADI’s North Amer
Slide 11: 2021 Guidance Reaffirmed
2021 Guidance Reaffirmed Revenue • Driven by market recovery in North American Bus and Coach and UK transit $2.8 billion to $2.9 billion • Continued growth of ARBOC in cutaway and medium-duty markets ZEBs expected to make up 20% to 25% • ADL’s international expansion in Europe and APAC of 2021 manuf
Slide 12: Unprecedented Government funding support for ZEBs
Unprecedented Government funding support for ZEBs $17.6B Green Recovery Funding £5.0B transit and cycling program $14.9B Transit Funding Program £90M SULEB 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 $100B+ Bipartisan Inf
Slide 13: NFI View on Market Recovery
NFI View on Market Recovery PHASE 3 Production Recovery PHASE 2 Project Awards • 2021 Public Transit awards PHASE 1 result in increased production Initial Recovery and Bid Activity Growth • NA Private Markets at 75% • North American Awards pre-COVID-19 levels by 2023 released, government funding • N
Slide 14: Public Market Bid Universe Showing Signs of Recovery
Public Market Bid Universe Showing Signs of Recovery Canada and U.S. Public Market Bid Universe 3,590 EUs Bids in Process Bids Submitted 5 Year Forecast Bids in Process 3,215 EUs 35,000 Avg. timeline from bid release to production = 12 to 18 months 30,000 Bids Submitted 25,000 18,211 EUs Five-Year P
Slide 15: Positioned for Growth and Margin Enhancement
Positioned for Growth and Margin Enhancement Recovery, NFI Forward, and Leading the ZEvolution 2020 – 2025 REVENUE ($M) $3,900 to $4,100 $2,896 $2,800 to $2,900 $2,419 16% - 20% 8%+ CAGR Growth (2021-2025) 2019 2020 2021 2025 Guidance Target ADJ EBITDA ($M)(1) $400 to $450 $322 $220 to $240 $158 16%
Slide 16: NFI Summary and Outlook
NFI Summary and Outlook Solid performance in 2021 Q2 in a challenging environment; COVID-19 and related supply challenges still impacting operations (shortages, production Solid Q2 2021 schedule management, etc.) in challenging environment North American public transit bid activity near pre-COVI
Slide 17: Appendices
Appendices
Slide 18: Appendix: Financial Highlights
Appendix: Financial Highlights $M (except EU a nd EPS) Q2 YTD 2021 2020 Change 2021 2020 Change Deliveries (EUs) 989 545 81.5% 1,944 1,824 6.6% Revenue $582.8 $333.3 74.8% $1,156.9 $1,043.7 10.8% Gross Profit $69.5 ($17.4) 500.0% $155.3 $66.3 134.3% Gross Profit % 11.9% -5.2% -32878bps 13.4% 6.4% 11
Slide 19: Appendix: Non-IFRS Reconciliation (2021)
Appendix: Non-IFRS Reconciliation (2021) Reconciliation of IFRS to non-IFRS As of June 27 2021 First Second In '000 Quarter Quarter Full Year Net Sales $ 574,119 $ 582,794 $ 1,156,913 Net Earnings $ 7,033 $ 2,587 $ 9,620 % of net sales 1.2% 0.4% 0.8% Adjustment, Gross Restructuring and Other Corpora
Slide 20: Appendix: Non-IFRS Reconciliation (2020)
Appendix: Non-IFRS Reconciliation (2020) Reconciliation of IFRS to non-IFRS As of December 27 2020 First Second Third In '000 Quarter Quarter Quarter Forth Quarter Full Year Net Sales $ 710,384 $ 333,334 $ 663,922 $ 711,523 $ 2,419,163 Net Earnings $ (67,239) $ (74,049) $ (24,913) $ 8,465 $ (157,736
Slide 21: 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 22: Appendix: Key Definitions
Appendix: Key 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 adjustments i
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