0

NFI:TSX Investor Update

North America’s #1 Bus OEM & Parts Distributor

May 10, 2018

Forward Looking Statements and Non-GAAP Measures are defined in APPENDIX B.

1

Company Profile & Performance Highlights

LTM Performance:

Revenue: US $2.39B

Adjusted EBITDA: US $320.4M

Return on Sales: 13.4%

Net Debt: US $626M

Total Leverage: 1.90X

ROIC: 15.4%

FCF: US $161.5M

Payout Ratio: 39.8%

Fully Diluted Market Cap: ~$C 3.7B (3)

Common Share (TSX:NFI) (4)

Shares Outstanding: 62.9M

60-day average Daily Volume: ~275K

Dividend = C$1.50/Share(1), Yield: ~2.5%(3)

TSR(2):‘18 YTD =11%(3) ‘17 =35% ‘16 =47%

(1) Effective May 9, 2018 the Dividend increased by 15.4% to C$1.50 per share annually. Paid quarterly.

(2) Total Shareholder’s Return (“TSR”) is calculated by the growth in capital assuming dividends are reinvested each time paid.

(3) Calculated using closing TSX market price as at May 4, 2018

(4) NFI is included in S&P/TSX: Composite Index, Equal Weight Industrials Index and Composite Shareholder Yield Index

Q4-17 Production Backlog:

2018 Production Target: 4,350 EU

Firm Orders: 3,997 EU = $2.1B

Options: 7,551 EU = $3.7B

Book-to-Bill Ratio: 149% LTM

NFI Group

Market Leader: o Founded in 1930, the #1 Bus OEM and Parts supplier in North America:

o ~6,000 employees (>50% in US). 32 facilities. Installed base of ~70K vehicles

o Buy America and Canadian Content compliant.

o Market Innovation and Technology leader

Broadest Product offering with Greenest Propulsion Options:o Positioning: High Quality. “Workhorse” lowest TCO. Great service and parts support.

o Propulsion agnostic from clean diesel, diesel-electric hybrid, natural gas and zero-

emission (electric trolley, battery-electric and fuel cell-electric) on common platforms

Solid Runway and Orderbook:o LTM deliveries = 3,929 EUs. 2018 Guidance = 4,350 EUs

o $5.8B Backlog: 3,997 firm orders and 7,551 options (EUs) with ~80% conversion rate

o Public Customer Book-to-Bill ratio consistently >100% for last 15 Quarters

Proven Track Record: o Changed Capital Structure in 2012. LEAN implementation.

o Last 8 years: ROS from 5% to >13%. ROIC from 6% to >15%. Market Cap from

C$0.5B to C$3.7B. Five year TSR 892% (assuming all dividends reinvested)

o Diversification through M&A (7) since 2010: HD Transit + Parts + Coach + Cutaway

o Business Unit structure with operating Presidents.

Financial Flexibility:o LTM US $2.39B Revenue with 90% in US$. $373M spare parts business

o Flexible cost base. Appropriate level of Make vs Buy

o Strong and predictable FCF. Leverage <2X

o Dividend = $1.50/share (2.5% Yield) with record of consistent increases.

2

950.5

153.4

--

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1000.0

Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17

Tota

l Ret

urn

Total Shareholder Return

S&P/TSX

Composite Index

TSR includes capital appreciation and dividends paid. Calculated using closing TSX market price as at March 21, 2018

Acquired North

America’s leading

manufacturer of motor

coach & parts/service

Acquired US

manufacturer of HD

transit buses &

parts distributor

Acquired Orion

(transit bus parts

business) from

Daimler

Global bus body manufacturer

equity investment in NFI

Acquired Can/US

FRP Supplier

Acquired US part

fabricator in 2010

NFI converted

from IDS to

Common Share

NFI Group

Acquired assets of US

FRP Supplier

Source: FactSet, Company filings

Acquired US OEM of low-floor

cutaway and medium-duty buses

3

NFI Differentiators:

1. Offer a full range of Bus Products as the

industry’s best buses, parts and service.

“Workhorses”

2. Trusted business partner for over 85 years

delivering and standing behind reliable

products. Focus on Total Cost of Ownership.

3. Vertically Integrated fabrication where NFI

owns the drawings to control Cost-Time-

Quality.

4. Propulsion Agnostic on proven common

platforms: Clean Diesel, Natural Gas,

Hybrid, Electric (trolley, battery and fuel-cell)

5. Exceptional Spare Parts, Publication and

Training offering.

Core Competencies:

1. Focus on People and Culture. Continuous

pursuit to be an Employer of Choice.

2. We know LEAN: Deployed operational

excellence principles and a Quality

Roadmap.

3. Exceptional ability to integrate complex

technology and perform rapid and continuous

change engineering, sourcing and

production.

4. Ability to Plan, Manage and Control large

scale projects and business transformations.

5. Ability to perform due diligence, Acquisitions

and successful integration.

NFI Group Providing leading solutions to move groups of

people safely, efficiently, responsibly, and in style.

Optimize, Defend, Diversify & Grow

4

Proven Leadership with extensive Industry Experience

Wayne Joseph

President, Transit Bus

Joined New Flyer in 2008 as VP Operations and then

assumed responsibility as EVP Transit Bus. Prior held

executive positions in bus manufacturing for over forty

years with NABI, Blue Bird and Flxible, and then at

BAE Systems.

Holds a Bachelor of Science in Business Administration

and an Accounting Degree and is Certified in

Production and Inventory Management (CPIM).

Ian Smart

President, Motor Coach

Joined New Flyer in 2011 as EVP Aftermarket and prior

held various executive positions at Standard Aero for

15 years - one of the world’s largest independent

aviation service companies.

Lead the project to privatize and conduct LEAN

implementation at a United States Air Force Base.

Holds a Bachelor of Science in Industrial Engineering.

Brian Dewsnup

President, Aftermarket Parts

Forrmely NABI’s CFO since 2006 (which NFI acquired

in 2013), and then VP Business Development of New

Flyer. Led the acquisition of MCI and became VP &

GM Aftermarket. Prior served as Controller of Johns

Manville's-Waterville operations, and held various

capacities at Ford Motor and Visteon.

Holds a Bachelor's in Mechanical Engineering, Masters

in Mechanical Engineering, and an MBA in Finance.

Paul Soubry

President & CEO, NFI Group

Joined New Flyer in 2009 as President and CEO after

24 years with Standard Aero. Holds a Bachelor of

Commerce, attended Exec Ed at Harvard Business

School and the Institute of Corporate Directors.

In 2003, was named a recipient of ‘Canada’s Top 40

under 40’ award, inducted into the CME Manufacturing

Hall of Fame in 2014, and recognized as Canada’s

2016 CEO of the Year by the Financial Post.

David White

EVP Supply, NFI Group

Joined New Flyer in 1998 as Corporate Controller, and

became Vice President Supply Management in 2002.

Prior worked for Deloitte as a Chartered Accountant.

Holds a Bachelor of Commerce in Finance and

obtained Chartered Accountant designation.

Glenn Asham

CFO, NFI Group

Joined New Flyer in 1992. Obtained chartered

accountant designation and holds a Bachelor of

Commerce. Prior worked with Deloitte providing client

services in the areas of accounting, auditing, taxation

and management consulting

Colin Pewarchuk,

General Counsel, NFI Group

Joined New Flyer in 2006. Prior practiced law with

Aikins, Macauley and Thorvaldson and was a Banking

Officer with Royal Bank of Canada. Holds a Bachelor

of Commerce in Finance and a Bachelor of Laws.

Janice Harper

EVP HR, NFI Group

Joined New Flyer in 1998. Holds a Diploma in Creative

Communications, a Certificate in Human Resources, is

a Charterer Professional in Human Resources (CPHR),

a HR Compensation Committee management

designation and a BA in Communications.

NFI Group

Wayne Joseph

President

Transit Bus

Paul Soubry

President & CEO

NFI Group

Brian Dewsnup

President

Aftermarket Parts

Parts BusinessOEM Business

Ian Smart

President

Motor Coach

David White

EVP Supply

NFI Group

Glenn Asham

EVP & CFO

NFI Group

Janice Harper

EVP HR

NFI Group

Colin Pewarchuk

EVP General Council

NFI Group

5

Manufacturing, Fabrication and Service Footprint

`

FL

AL

TX

CA

NDMN

IL IN OH

KY

WV

PA

NY

NJ

SK MB

ON

QC

AB

Renton, WANFI Service Center

Ontario, CANFI Completion

& Service Center

Crookston, MNNFI Bus Completion

St Cloud, MNNFI Bus Manufacture

Fiberglass Fabrication

Anniston, ALNFI Bus Manufacture

Parts Fabrication

Fiberglass Fabrication

Elkhart, INTCB Part Fabrication

Arnprior, ONNFI Service Center

NFI - Winnipeg, MBParts Fabrication

Fiberglass Fabrication

Bus Shell Assembly

New Product Development

MCI - Winnipeg, MBParts Fabrication, MCI D Model Shell Assembly

Complete J Model manufacture

New Product Development

Fiberglass FabricationMontreal, PQ

MCI Service Center

Blackwood, NJMCI Service Center

Winter Garden, FLMCI Service Center

Dallas, TXMCI Service Center

Los Alamitos, CAMCI Service Center

Pembina, NDMCI D Model Completion Center

Des Plaines, ILMCI Service Center

Jamestown, NYPart Fabrication/Assembly

+

Hayward, CAMCI Service Center

NFI Group

WA

Wausaukee & Gillet, WIFiberglass Fabrication

WI

Middlebury, IN

Shepherdsville, KYNew Part Fabrication

6

-

5,000

10,000

15,000

20,000

25,000

12

-Jan-0

9

12

-Jan-1

0

12

-Jan-1

1

12

-Jan-1

2

12

-Jan-1

3

12

-Jan-1

4

12

-Jan-1

5

12

-Jan-1

6

12

-Jan-1

7

12

-Jan-1

8

1,49

2

1,86

2

1,76

7

1,19

0

1,47

9

1,51

4

1,02

2

753

1,05

0

1,29

2

1,05

6

1,01

2

811

633

592

686

821

802

856

942

1,07

1

2,48

5 2,99

0

2,82

4

2,38

1

2,33

0

2,04

8

1,47

5

1,34

3 1,75

2

2,09

9

1,85

2

1,82

0

1,58

4

1,20

8

1,54

3

1,56

6

1,77

3

1,92

6 2,31

1

2,41

6

2,47

0

60%62%63%

50%

63%

74%

69%

56%60%

62%

57%56%

51%52%

38%

44%46%

42%

37%

39%

43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Annual Deliveries and Market Demand

HD Transit Bus Market - EUs delivered in Can/US Motor Coach Market - Delivered in Can/US

Public Bid Universe & Active Opportunities (EUs)NFI LTM New Bus/Coach Deliveries (EUs)

442441

386387

490489

577

635

554582

621

680

572594

625

689

829

912

777

993

892

991

877

1068

993

1,785

1,7951,739

1,656

1,7041,752

1,943

2,1912,255

2,348

2,392

2,437

2,455

2,467

2,471

2,480

2,7373,055

3,207

3,511

3,574

3,653

3,7533,828 3,929

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

200

300

400

500

600

700

800

900

1,000

1,100

1,200

NFI Group

Bids submitted by NFI

and awaiting award

by customer

Operator RFPs issued

with proposals in

development

Forecasted buys

for next 5 yrs

Source: New Flyer Database & Management Estimates

4797 5

347 5

816 6236

5388

5009

4723 5

212

4333

4047

5065

5284

6032

5933

5154

5109

5010

5128 5533

5795 6

336

935

1050

1500

1864

2051

1272

1731

1871

1585

1422

2115

2164

2258

2025

1814

1656

1868

2437

2457

2569

2735

19.5%19.6%

25.8%

29.9%

38.1%

25.4%

36.7%35.9%36.6%35.1%

41.8%41.0%37.4%

34.1%35.2%32.4%

37.3%

47.5%44.4%44.3%43.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

1000

2000

3000

4000

5000

6000

7000

7

#1 Market Share in Transit Bus

Heavy-Duty: Xcelsior®

Launch in 2009 based on >20 years experience with low floor transit buses. Primary

targets are metropolitan & urban fleets

Offered in 35’, 40’, and 60’ lengths and with the industry’s widest range of propulsion

options: clean diesel, diesel-electric hybrid, natural gas, and zero-emission (electric

trolley, battery-electric and fuel cell).

Active Canada/US HD Transit Bus Coach Fleet ~85,000

Average Age of the HD Transit Fleet: US = 7.8 years, Canada = 7.3 years

Source: APTA Public Transportation Factbook 2016

Orion Parts and NABI acquired by NFI in 2013

20%

43%

28%

6%

3%

HD Transit Bus Share (2017 market is ~6,300 units)

Montreal and New York

Owned by Volvo Truck & Bus

California

Owned by REV Group

California

Privately Owned by

Henry Crown and Company

Source: New Flyer Database & Management Estimates

8

Metropolitan

Fleets

17 operators

39% of installed fleet

Urban

Fleets

200 operators

45% of installed fleet

Municipal

Fleets

900+ Operators

16% of installed fleet

Transit Bus Market Segments in Canada and US

Source: New Flyer Database & Management Estimates

Transit Market Segments

and primary targets

24 of the 25 largest Transit Agencies

operate NF supported transit buses

Market entrants focusing only on battery-electric buses:

9

27%

43%

23%

7%

#1 Market Share in Motor Coaches

50% 1% 26% 23%

New Coach – Private New Coach – Public Pre-Owned Coach

Targets the mid-range to luxury segments

J Model #1 selling coach in NA private market

Targets the mid-range segment

“Buy America” compliant

D Model is the #1 selling coach of all time in NA

Trade-in option to support new coach sales

(~350 annually)

Coaches are refurbished at NFI/MCI service

centers and various 3rd parties

Active Canada/US Motor Coach Fleet ~55,500 units

Average Age of the Motor Coach Fleet: US and Canada = 9 years

Source: ABA Motor Coach Census, published February 2016

MCI Share increased

by 4% in 2017

J Model D Model

Motor Coach Share: 2017 market ~2,500 units

Belgium & Macedonia

Privately owned

Quebec and New York

Turkey

Owned by Sabanchi Group

Spain US

Mexico

Owned by Volvo Truck & Bus

Negligible Deliveries to date

Source: New Flyer Database & Management Estimates

10

Motor Coach Market in Canada and US

Market Segments and primary targets

Transit

12% of installed fleet

Fixed Route/

Line Haul

34% of installed fleet

Tour & Charter

52% of installed fleet

Conversion

2% of

installed fleet

Public Private Private Private

Source: MCI Database & Management Estimates

Private Market Segment Definitions

11

ARBOC acquired by NFI December 1, 2017

Source: New Flyer Database & Management Estimates

• ARBOC Specialty Vehicles LLC was acquired by NFI for $95M or ~10X ARBOC’s 2017 adj

EBITDA. ARBOC has Industry leading EBITDA margins and favorable commercial terms

• A pioneer in low-floor cutaway bus technology, ARBOC holds numerous patents and is the

industry leader in the development and manufacture of low floor buses 21-35 feet in length

for transit, paratransit and shuttle applications.

• Founded in 2008, ARBOC has sold >2,500 buses. 2017 deliveries ~360 buses and 2018

forecasted ~500 buses (40% increase, of which 320 are firm orders). Located in

Middlebury, IN, ARBOC is Buy America compliant.

• Market leader of the low-floor cutaway segment with approximately 70% market share.

ARBOC recently launched a medium duty bus built on their own chassis design. The bus

has received tremendous market response, with initial orders in hand, and is currently

undergoing testing to ten year standards at the FTA sanctioned Altoona test track.

(1) Current Low floor cutaway market estimated at approx. 550 units

(2) Competitors offering low floor cutaways

Opportunity for NFI:

• Growth potential for both Cutaways and Medium Duty buses

• Located in the US. Buy American Compliant

• A maturing business with proven bus models. Advanced,

disruptive and patented low-floor technology.

• Bus types & models complimentary to NF and MCI

• NFI has retained ARBOC Management team

• Low cost operations with very attractive bus price points

• Synergy potential with NFI (not yet fully qualified)

• Sales leverage with some Customer overlap

• Potential for strategic sourcing and part fabrication

• Spare parts business

12

#1 in Low Floor Cutaway Buses

ARBOC Low Floor Bus Models

NA Low Floor Cutaway Bus Share

(2017 market ~550 units)

NA Cutaway Bus Market

(2017 market ~15,000 units)

High Floor w/ Lift

High Floor w/o Lift

Low Floor Other

Low Floor Cutaway

29%

64%

5%

2%

• Launched in 2010

• 24’, 27’ and 29’

Lengths

• Launched in 2008

• 23’, 26’ and 28’

Lengths

• Launched in 2016

• 29’, 32’, and 35’

Lengths

• Launched in 2014

• 29’ and 34’ Lengths

• Launched in 2016

• 21’ and 23’ Lengths

IndependenceFreedomMobility EquessLiberty

ARBOC

Champion *

Glaval *67%

21%

12%

* As reported by vendor

High Floor Cutaway

Low Floor Cutaway

Source: ARBOC Management Estimates

13

Clean Diesel Natural Gas Electric Trolley Hybrid ElectricBattery Electric/

Fuel Cell

Xcelsior

35’, 40’, 60’

D Model 40’, 45’*

J Model 45’ with

35’ in developmentMCI eCoach

in Development

Low- Floor

Cutaway

Medium Duty

Transit/Shuttle

Environmental Leadership with Propulsion OptionsNFI Group

New Flyer Leadership in Zero Emissions Buses (ZEB)

NF has delivered >6,900 transit buses powered by electric motors (including hybrids, trolleys, battery-electric and fuel cell-electric).

New Flyer launched a next generation Xcelsior CHARGE transit bus and continues to lead the US/Can ZEB market with 47% of the

2017 ZEB awards, and 30% of ZEB deliveries. Active ZEB Bid Universe at the end of 2017 was ~10% of the total Bid Universe.

Battery-electric J Model motor coach in testing at MCI Source: New Flyer Database & Management Estimates

14

Investing for Growth and Margin Enhancement

Vehicle Innovation Centre

New D Model CRT with Vestibule

35’ Model J & eCoach Prototypes

SF Bay Area Service Center

Battery-Electric Xcelsior

NFI Group

IT Harmonization

at MCI and Parts

FRP Fabrication Acquisitions

Telematics

Web Store

15

Industry’s most comprehensive Parts Offering+

Widest bus and motor coach product

inventory, industry leading distribution

network with shortest delivery times.

Added value through unique offerings

(Kits, Mid-life upgrade programs, Vendor

Managed Inventory, KanBan, etc).

New MCI website offering state of the art

on-line sales and distribution features.

16

Financial Performance+NFI Group

641691 711

1,178 1,1891,244

8.6% 8.6%

12.3%

14.3%

15.8%15.4%

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

4%

6%

8%

10%

12%

14%

16%

18%

2013 2014 2015 2016 2017 2018 Q1 LTM

Average invested capital for the year Return on invested capital (ROIC)

$'s (Millions)

41 64 57

90

181

246 243

20

31 50

61

76

72 77

61

95 107

151

289

318 320

-

50

100

150

200

250

300

350

400

2012 2013 2014 2015 2016 2017 2018 Q1LTM

Bus Aftermarket

746 984 1,132 1,217

1,891 2,013 2,015

119

215

319 322

383 369 373

865

1,199

1,451 1,539

2,274 2,382 2,388

-

400

800

1,200

1,600

2,000

2,400

2,800

3,200

2012 2013 2014 2015 2016 2017 2018Bus Aftermarket

ROIC = Net operating profit after tax

Average invested capital for the period

Sales ($M US) Adjusted EBITDA ($M US)

Return on Invested Capital Quarterly Adjusted EBITDA ($M US)

16 16 14 14 15 1824

37

2027 26

3531

3936

45

68

80

64

7771

85

71

91

74

75 71 63 61 59 6171

95 99108110107

119131

141151

188

229

257

289292297304318321

0

50

100

150

200

250

300

350

2012 2013 2014 2015 2016 2017 2018 Q1

0

20

40

60

80

100

120

Adjusted EBITDA LTM Adjusted EBITDA

17

Operating Performance

Adjusted EBITDA per new EU delivered ($000 US) Aftermarket EBITDA Margin %

23.125.6 24.9

26.3

20.221.6

27.5

43.0

14.0

23.9

20.2

34.1

25.8

37.7

34.6

45.3

56.0

65.5

57.459.8

56.5

66.9

62.4

69.9

54.3

$0

$10

$20

$30

$40

$50

$60

$70

$80

18.3%

17.1%

15.4%

14.8%14.7%14.6%14.6%

14.0%

16.3%

16.2%16.0%

14.2%

18.6%18.8%

20.5%

18.6%

20.6%20.6%20.9%

20.3%

21.8%

20.0%

18.6%

17.3%

19.9%

12%

14%

16%

18%

20%

22%

NFI Group

18

Book-to-Bill Ratio, Backlog and Option Conversion

Public Customer Book-to-Bill consistently >100% for last 14 Quarters

Total Backlog (Firm and Option EUs)

US Customer deferred Order was removed from backlog in 2013 following 5 years of inaction.

Firm

= 4

,186 E

Us

Optio

ns =

7,9

71

EU

s

0

2,000

4,000

6,000

8,000

10,000

12,000

Firm Deferred Order Firm Option Deferred Order Option

ARBOC backlog

added in Q4-17

Option History and Current Status (EUs)

Conversion rate % is calculated as, Options exercised / (Options expired + Options exercised)

35%

54%

73%

79% 81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

-

500

1,000

1,500

2,000

2,500

3,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Options expired Options exercised Current option expiry Conversion rate

MCI Public backlog

added in Q4-15

0%

50%

100%

150%

200%

250%

300%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018

Order Intake vs Deliveries

LTM New Orders (EUs) LTM Deliveries (EUs) LTM Order Intake / Deliveries

NFI Group

19

Cash Flow Performance

Free Cash Flow and Dividends (C $M)Fiscal 2018 Adjusted EBITDA to Free Cash Flow ($M)

320.4

19.7

76.8

58.3 4.3

0.2 161.5

44.2 205.7

-

50

100

150

200

250

300

350

Millio

ns

+

Free Cash Flow and Dividends ($US)

0.610.87

1.18

1.95

3.64

3.31 3.28

0.81

0.210.48

0.97

2.10

3.062.93

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

2012 2013 2014 2015 2016 2017 2018 Q1LTM

Free Cash Flow per share (C$) Earnings per share (US$)

Free Cash Flow and Net Earnings ($/share)

27.1

43.4

59.1

83.4

165.2 161.2 161.5

33.1 29.6 29.3 26.3

41.1

59.5 64.3

45%

46%

55% 55%57%

51%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

$0

$50

$100

$150

$200

2012 2013 2014 2015 2016 2017 2018 Q1LTM

Free Cash Flow ("FCF") Dividends Declared FCF as a % of Adjusted EBITDA

NFI Group

27.1

45.1

65.5

108.3

216.3 206.9 205.7

33.1 30.7 32.5 33.8

54.0

76.1

81.8

-

50.0

100.0

150.0

200.0

250.0

2012 2013 2014 2015 2016 2017 2018 Q1LTM

Free Cash Flow Dividends

20

Strong Balance Sheet with low Leverageas at Apr 1-18

*Under NFI Senior Credit Agreement, Total Leverage Ratio did not include Convertible Debentures as debt.

Total Credit Facility Debt ($US M) = $621M (Senior Debt + Revolver Drawn + Bank

indebtedness)

Total Leverage Ratio* vs Credit Covenant

+NFI Group

Senior Secured Debt$482M

Revolver Drawn*$139M

Undrawn Revolver$204M

Undrawn Accordian**

$75M

0 100 200 300 400 500 600 700 800 900 1000

2.96

3.633.07

3.80 3.51 3.48

2.11

2.52

1.67 1.65

2.91

1.941.67 1.52 1.55

1.84 1.9

5.75 5.75 5.75 5.75

4.75 4.75 5.25

3.25 3.25 3.25

4.00 4.00 3.75 3.75 3.75 3.75 3.5

-

1.0

2.0

3.0

4.0

5.0

6.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 17-Q1 17-Q2 17-Q3 17-Q4 18-Q1

Total Leverage

* Includes $15M drawn against Letters of Credit

** Use of Accordion facility requires Lender Approval

21

Capital Allocation Policy+

Invest in current

business and growthMaintain Balance Sheet

flexibility

Return capital to

Shareholders

“Growth includes both

Organic and M&A”

• Invest in LEAN manufacturing

to improve quality & cost

effectiveness

• Invest in vertical integration of

critical supply

• Seven acquisitions completed

from 2010 to 2017. Seeking

additional M&A (Tuck-in and

Growth).

“Prudent use of

Leverage”

• Provide liquidity for fluctuating

working capital requirements

• Seek normal operations

between 2-2.5X leverage

• Add leverage to fund accretive

acquisitions capable of reducing

leverage through earnings

“Common Share

Dividend”

• Sustainable distributions.

• On May 9th, 2018 the annual

dividend rate was increased to

CAD C$1.50 per share. Paid

quarterly.

Foundation of Capital Allocation Policy is built on a strong balance sheet

and an operating model providing consistent and predictable cash flow

NFI Group

22

GLOBAL BUS MARKET ~420K/YR CANADA/US BUS MARKET ~56K/YR

Bus Market Segments

APPENDIX A

2016 Data

23

FORWARD LOOKING STATEMENTS

This investor presentation contains forward-looking statements relating to expected future events, including the integration of the acquired business into New Flyer’s existing business and expected synergies, the

diversification and growth of the combined bus, motor coach and aftermarket parts businesses. Although the forward-looking statements contained in this investor presentation are based upon what management

believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. Actual results may differ

materially from management expectations as reflected in such forward-looking statements for a variety of reasons, including risks related the ability to implement the operational changes necessary to achieve the

intended synergies, acquisitions, joint ventures and other strategic relationships with third parties (including liabilities relating thereto), the covenants contained in the Company’s new senior credit facilities could

impact the ability of the Company to fund dividends, market and general economic conditions and economic conditions of and funding availability for customers to purchase buses and to purchase parts or services,

customers may not exercise options to purchase additional buses, the ability of customers to suspend or terminate contracts for convenience and the other risks and uncertainties discussed in the materials filed with

the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, the Company disclaims any intention or obligation to update or revise any

forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

FINANCIAL TERMS, DEFINITIONS AND CONDITIONS

References to “Adjusted EBITDA” are to net earnings after adjusting for interest, income taxes, depreciation and amortization, gains or losses on disposal of property, plant and equipment and unrealized foreign

exchange losses or gains on non-current monetary items the effects of certain non-recurring and/or non-operations related items that have impacted the business and are not expected to recur, including non-

recurring costs relating to business acquisitions, product rationalization costs, impairment loss on equipment and intangible assets, equity settled stock-based compensation, gain on bargain purchase of subsidiary

company, fair value adjustment to MCI’s inventory and deferred revenue, proportion of the total return swap realized, loss on derecognition of long-term debt and costs associated with assessing strategic and

corporate initiatives. Return on Invested Capital “ROIC” is calculated by dividing Net Operating Profit After Tax by Average Invested Capital for the period. References to “Net Operating Profit After Tax” are to

Adjusted EBITDA less depreciation of plant and equipment and income taxes. References to “Invested Capital” are to shareholders’ equity plus long-term debt, obligations under finance leases, other long-term

liabilities, convertible debentures and derivative financial instrument liabilities less cash.

Management believes Adjusted EBITDA, ROIC and Free Cash Flow (as defined below) are useful measures in evaluating the performance of the Company. “Free Cash Flow” means net cash generated by

operating activities adjusted for changes in non-cash working capital items, interest paid, interest expense, income taxes paid, current income tax expense, effect of foreign currency rate on cash, defined benefit

funding, non-recurring transitional costs relating to business acquisitions, costs associated with assessing strategic and corporate initiatives, product rationalization costs, defined benefit expense, cash capital

expenditures, fair value adjustment to MCI’s inventory and deferred revenue, proceeds from disposition of property, plant and equipment, gain received on total return swap settlement, proportion of the total return

swap realized and principal payments on capital leases. However, Adjusted EBITDA, ROIC and Free Cash Flow are not recognized earnings measures and do not have standardized meanings prescribed by IFRS.

Readers of this presentation are cautioned that Adjusted EBITDA and ROIC should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of New Flyer's

performance, and Free Cash Flow should not be construed as an alternative to cash flows from operating, investing and financing activities determined in accordance with IFRS as a measure of liquidity and cash

flows. A reconciliation of net earnings and cash flow to Adjusted EBITDA, based on the Financial Statements, has been presented In Management’s Discussion and Analysis of Financial Condition under the heading

“Reconciliation of Net Earnings to Adjusted EBITDA” and “Reconciliation of Cash Flow to Adjusted EBITDA”, respectively. A reconciliation of Free Cash Flow to cash flows from operations is provided under the

heading “Summary of Free Cash Flow”.

New Flyer’s method of calculating Adjusted EBITDA, ROIC and Free Cash Flow may differ materially from the methods used by other issuers and, accordingly, may not be comparable to similarly titled measures

used by other issuers. Dividends paid from Free Cash Flow are not assured, and the actual amount of dividends received by holders of Shares will depend on, among other things, the Company's financial

performance, debt covenants and obligations, working capital requirements and future capital requirements, all of which are susceptible to a number of risks, as described in New Flyer’s public filings available on

SEDAR at www.sedar.com.

All figures are in U.S. dollars unless otherwise noted.

FORWARD LOOKING STATEMENTS,

FINANCIAL TERMS, DEFINITIONS AND CONDITIONS+

APPENDIX B