Nfi Group Inc. · TSX:NFI
Nfi — Investor Presentation (November 2019)
24 slides from Nfi's investor presentation, November 2019
Slide 1: Investor Presentation
Investor Presentation NOVEMBER 2019
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 The North American Leader in comprehensive parts fiber-reinforced plastic (FRP) Heavy-Duty Transit buses organization, providing design and composites technology par
Slide 3: Our Mission and 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: Why Invest in NFI
WHY INVEST IN NFI Track Record Our Differentiators • Trusted business partner with nearly 400 years of combined • Exclusively focused on bus & coach with market leading bus and motor coach design and manufacturing experience positions in multiple jurisdictions • 5 year Q3 2019 LTM Revenue CAGR of 13
Slide 5: 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 6: A Diverse Business Model
A DIVERSE BUSINESS MODEL Q3 2019 LTM Revenue By Customer(1) By Segment(1) By Product(1) Public Motor 75% Coaches Aftermarket Manufacturing Transit 85% 25% 15% Buses Private 73% 25% Medium Duty and Low-Floor Cutaway 2% (1) ADL revenue only included for the period of May 28 to September 29, 2019. ADL
Slide 7: Movement to a Global Bus Business
MOVEMENT TO 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 fa
Slide 8: Movement to a Global Bus Business
MOVEMENT TO A GLOBAL BUS BUSINESS Q3 2019 LTM Pro-Forma Revenue by Geographic Region(1) • Leadership positions in Canada, United States, UK, New Zealand and Hong Kong • Vehicles present in 10 different jurisdictions UK and • 20% of revenue now derived from outside of Europe Canada and the US 15% • D
Slide 9: NFI Target Markets
NFI TARGET MARKETS Canada and U.S. Transit Market(1) Canada and U.S. Motor Coach Market(2) 6,504 6,336 6,236 6,032 5,933 5,816 5,795 5,388 5,373 5,347 5,284 5,212 5,154 5,128 5,109 5,055 5,010 5,009 4,723 4,333 4,047 3,001 2,819 2,485 2,470 2,385 2,357 2,324 2,305 2,274 2,092 2,048 1,918 1,852 1,825
Slide 10: Backlog Is a Position of Strength
BACKLOG IS A POSITION OF STRENGTH Book-to-Bill (New Firm Orders plus Options Converted / Deliveries)(1) 5,000 160% 11,594 EUs 90% 4,500 140% Total Backlog at Sept. 30, 2019 Q3-19 LTM 4,000 120% (Firm Orders and Options)(1) Book to Bill ratio(1) 3,500 3,000 100% 2,500 80% 2,000 1,500 1,000 60% 40% 20
Slide 11: Heavy Duty Transit Bus
HEAVY DUTY TRANSIT BUS • Leadership positions in Canada, US, UK and Hong Kong Single Deck Articulated • Solid deliveries to Singapore, New Zealand, Mexico & Malaysia Double-Deck 30-35-40 foot 60-foot 45-foot • Delivered more ZEB Heavy-Duty transit buses than any other manufacturer in North America D
Slide 12: Motor Coach
MOTOR COACH • MCI holds market leadership position in Canada and the U.S. • Plaxton brand well established in UK with additional sales in New Zealand CURRENT • New products: J3500, D45 CRT LE, Panorama double deck coach all POSITION in production • Backlog of 1,465 EUs, delivered 988 EUs in the last
Slide 13: Medium Duty and Low Floor Cutaway
MEDIUM DUTY AND LOW FLOOR CUTAWAY • ARBOC’s Spirit of Equess has been very well received with significant orders in the U.S. and Canada leading to record backlog • ARBOC’s low-floor cutaway vehicles are a disruptor in the traditionally high-floor centric industry • Testing low-floor cutaway vehicles
Slide 14: Aftermarket
AFTERMARKET • North America’s largest bus and coach parts distributor • Direct access to over 250 bus and coach engineers, providing expert technical support as well as cost-effective and timely parts procurement • Launched AD24 in the UK in 2018. The online platform offers full CURRENT range of spa
Slide 15: NFI Is a Leader in Technology Development
NFI IS A LEADER IN TECHNOLOGY DEVELOPMENT Leader in ZEBs and Infrastructure Advanced Driver Assistance Systems (ADAS) ▪ Electric variants available for Xcelsior 40’ and 60’ Xcelsior ▪ MCI has adopted Bendix Fusion Advanced Driver Assistance solutions products have completed FTA Altoona test program
Slide 16: The Leader in Reliable ZEB
THE LEADER IN RELIABLE ZEB J4500e variant D45 CRT LE electric variant Enviro200 and Enviro 400 electric variant 16
Slide 17: Historic Financial Performance
HISTORIC FINANCIAL PERFORMANCE Revenue by Segment Adjusted EBITDA and % Margin 2014 – Q3 2019 LTM(1) 2014 – Q3 2019 LTM(1)(2) 20.0% $2,638 18.0% $2,519 $2,382 $386 $2,274 16.0% $377 $369 13.4% $383 12.7% 14.0% 12.5% 11.3% 12.0% $1,539 9.8% $1,451 10.0% $322 $319 7.4% 8.0% $2,142 $2,252 $318 $315 $29
Slide 18: Seasonality Dynamics: The Importance of Product Mix
SEASONALITY DYNAMICS : THE IMPORTANCE OF PRODUCT MIX Quarterly Revenue by Segment: Q1 2014 to Q3 2019(1) Aftermarket Manufacturing $616.1 $563.1 $574.6 $576.5 $583.0 $536.9 $519.5 $512.2 $487.3 $475.9 $478.6 $476.4 $447.3 $454.1 $419.2 $336.6 $347.2 $278.7 $290.7 $285.8 $293.0 $250.9 $265.8 $73.0 $8
Slide 19: Investing for the Future
INVESTING FOR THE FUTURE Free Cash Flow, Cash CapEx and Return on Invested Capital (ROIC)(1) Reflects $28M investment in KMG and $25M in Anniston, plus $405M investment in ADL $165.2 $161.2 $159.7 $153.8 15.8% 14.3% 13.7% 12.3% $83.4 10.2% $76.1 8.6% $59.1 $56.9 $50.8 $27.9 $10.2 $10.5 2014 2015 201
Slide 20: Pro-Forma Impact of ADL
PRO-FORMA IMPACT OF ADL ADL + NFI: Pro-forma Revenue Q1 2018 to Q3 2019(1) $915.6 $820.6 $858.5 $762.6 $766.2 $716.5 $242.6 $196.4 $215.2 $132.7 $137.9 $195.6 $673.0 $605.3 $662.0 $633.5 $578.6 $567.0 ADL + NFI: Pro-forma Adjusted EBITDA Q1 2018 to Q3 2019(1)(2) $107.1 $15.7 $90.7 $84.7 $76.6 $69.3
Slide 21: Strong Balance Sheet and Returning Cash Flow to Shareholders
STRONG BALANCE SHEET AND RETURNING CASH FLOW TO SHAREHOLDERS ▪ ADL partially funded through new US$300 million Senior Secured ▪ NFI has paid consistent and growing dividends every quarter since its IPO in Credit Facility 2005 – Currently being syndicated with an October 2023 maturity and Senior Secu
Slide 22: Focused on Key Tasks in the Near Term
FOCUSED ON KEY TASKS IN THE NEAR TERM, WHILE CONTINUING TO ADVANCE STRATEGIC PRIORITIES Priorities for the next 180 days 1. Finalize CFO succession and develop transition plan 2. Expect to deliver 2,020 vehicles in Q4-2019 or 36.8% of 2019. Execute on NF and MCI WIP reduction 3. Pay down debt and re
Slide 23: 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 24: Investor Presentation
Investor Presentation NOVEMBER 2019