NFI Group Inc. · TSX:NFI

NFI — New Flyer Industries — 6th Annual Transportation & Logistics Conference (March 2011)

22 slides from NFI's conference presentation, Mar 23, 2011

  1. Slide 1: 6th Annual Transportation & Logistics Conference

    6th Annual Transportation & Logistics Conference Paul Soubry, President & CEO Glenn Asham, CFO Toronto March 23, 2011 Forward Looking Statements: Our remarks and answers to your questions today may contain forward-looking statements relating to New Flyer Industries Inc. and related companies or to t

  2. Slide 2: NFI.UN Investment Thesis

    NFI.UN Investment Thesis Yield oriented investment . Current Dividend/Interest Yield of approx 10% • IPO in 2005 on TSX. Estimated approx 50% held by Institutional Investors. Management/Directors hold 2.5%. • Income Deposit Security (IDS) is a stapled security. • NFI is an IDS (not an Income Trust)

  3. Slide 3: A Proud History. A Bright Future.

    A Proud History. A Bright Future. Delivering Heavy Duty Transit buses for over 80 years Founded in 1930 and headquartered in Winnipeg, Canada • 3 manufacturing plants (in Manitoba and Minnesota) with over 800,000 sq ft. • Interior Light/Stanchion fabrication plan in Elkhart, IN • Parts Distribution

  4. Slide 4: Transit's Broadest Product Offering

    Transit’s Broadest Product Offering More lengths… propulsion types… styling options. Low Floor (LF) Low Floor Restyle (LFR) LFA/Bus Rapid Transit (BRT) Xcelsior Propulsion Options: Clean Diesel, Gas or Diesel Electric Hybrid, Electric Trolley, CNG/LNG, Hydrogen Fuel Cell 4

  5. Slide 5: Now delivering the next generation Transit Buses

    Now delivering the next generation Transit Buses Over 40 Xcelsior’s delivered. 490 on order from 16 customers Improved: Reduced: • Exterior Styling • Weight (approx 10%) • Passenger Experience • Noise Levels 60’ Xcelsior Prototype Accessibility • Operating Costs Currently in Testing Phase Larger Win

  6. Slide 6: North America's #1 Market Share

    North America’s #1 Market Share New Flyer delivered 37% of Heavy Duty Transit buses in 2010 Source: New Flyer Database & Management Estimates 6

  7. Slide 7: A broad and diversified Customer Base

    A broad and diversified Customer Base Over 30,000 buses delivered with 22,000 still in operation New Flyer maintains relationships with 273 transit authorities, including 21 of the 25 largest Average key customer relationship approximately 14 years; 89% repeat sales 7,000 ϭϰй 6,000 5,000 4,000 ϭϳй 3

  8. Slide 8: Expanded New Flyer Business Definition

    Expanded New Flyer Business Definition Following a roadmap for Production Innovation and Control On time, Latest Technology on Spec and with Superior on Budget Quality To Deliver the Best Bus Value and Support for Life Price- Data, Buses are Quality Parts and designed for Alignment services 12-20 ye

  9. Slide 9: Made significant investments in Operations

    Made significant investments in Operations Change Management for sustainable processes Shop Floor Transformation Warehouse Elimination Tool Shadow Boards Automated Consumable Control Live Shop Floor Data Measures of Performance 9

  10. Slide 10: 10

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  11. Slide 11: CME Lean Assessment Results

    CME Lean Assessment Results 4th annual audit completed on March 1, 2011 zĞĂƌKǀĞƌzĞĂƌdƌĞŶĚ EĞǁ&ůLJĞƌ tŽƌůĚůĂƐƐĞŶĐŚŵĂƌŬ ϱ͘Ϭ ϰ͘ϱ ϰ͘Ϭ ϯ͘ϱ Ϯ͘ϵ ϯ͘Ϭ Ϯ͘ϱ ϯ͘Ϭ Ϯ͘Ϭ Ϯ͘ϱ Ϯ͘Ϯ ϭ͘ϱ ϭ͘Ϭ ϭ͘ϰ Ϭ͘ϱ Ϭ͘ϵ Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ 11 Scores provided based on the new scoring system and the ‘old system’ so we could still co

  12. Slide 12: New Flyer is also #1 in Aftermarket Parts sales

    New Flyer is also #1 in Aftermarket Parts sales 16% share of North America bus spare parts market Source: New Flyer Database & Management Estimates 12

  13. Slide 13: Now expanding Aftermarket Support offering

    Now expanding Aftermarket Support offering “It’s not JUST about the bus” Used Reliability Consigned uses Buses Kits Engineering Service Ctr Parts The Bus Service Pubs Training Training Arnprior Service Center added in Q1-10 13

  14. Slide 14: New Flyer Performance (US$)

    New Flyer Performance (US$) Demonstrated growth since IPO in 2005 SALES Adj EBITDA 1200 120 108 1000 100 96 106 17 24 83 24 20 800 80 Parts 10 600 53 67 60 992 14 865 878 Bus 400 804 40 78 76 73 73 63 537 540 45 200 20 0 0 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 14 14

  15. Slide 15: Focused on the fundamentals

    EBITDA Generation & WIP Reduction Focused on the fundamentals YƵĂƌƚĞƌůLJWƌŽĚƵĐƚŝŽŶZĞƐƵůƚƐ ϲϭϲ ϱϴϲ ϱϴϯ ϱϵϯ ϲϬϬ ϱϱϴ ϱϰϱ ϱϰϱ ϱϯϭ ϱϮϲ ϰϵϭ ϱϬϯ ϰϵϮ ϰϵϵ ϰϵϬ ϱϬϬ ϰϲϲ ϰϱϯ ϰϬϬ ϰϬϯ t/W ϯϬϬ ϯϰϭ ϯϮϬ ĞůŝǀĞƌŝĞƐ Ϯϵϰ Ϯϵϵ Ϯϴϰ Ϯϱϲ Ϯϲϱ Ϯϲϴ ϮϲϮ Ϯϰϭ Ϯϰϯ Ϯϰϱ Ϯϰϭ ϮϬϬ Ϯϭϰ ϮϬϵ ϭϬϬ Yϭ YϮ Yϯ Yϰ Yϭ YϮ Yϯ Yϰ Yϭ YϮ Yϯ Yϰ Yϭ YϮ Yϯ

  16. Slide 16: 66 consecutive months of distributions; payout ratio below 80%

    Payout Ratio has averaged <80% since IPO New Flyer has paid 66 consecutive months of distributions Current Yield approx 10% IDS distribution paid monthly at an effective annual rate of C$1.17 (since Jul-07). New Flyer is a Corporate issuer and therefore not impacted by 2011 SIFT rules (ie. no conver

  17. Slide 17: In Compliance with all Covenants

    In Compliance with all Covenants Leverage Ratios Fixed Charge Coverage (Debt to Adjusted EBITDA) (Adjusted EBITDA less Capex and current taxes over debt service) Covenants were set in 2005 to allow for issuance of IDS Covenant reset at to redeem Class B&C Credit Renewal 6.0 2.00 5.0 4.0 EBITDA 3.0 1

  18. Slide 18: Heavy Duty Transit Bus Deliveries are cyclical

    Heavy Duty Transit Bus Deliveries are cyclical With macro economic factors adding turbulence Current Market Conditions While Public Transportation is an essential service, US Transit market in it’s most turbulent time in decades. Current US funding bill extended to Sept 2011. No clarity yet on 6-yr

  19. Slide 19: New Flyer deliveries maintained at over 2,000/yr

    New Flyer deliveries maintained at over 2,000/yr Total New Flyer Backlog over 8,700 EU’s ($3.68B) New Flyer Bus Deliveries (EU’s) ϮϱϬϬ Ϯϭϲϰ ϮϮϱϳ ϮϬϯϯ ϮϬϮϱ ϮϬϬϬ ϭϱϴϯ ϭϰϰϮ ϭϱϬϬ ϭϬϬϬ ϱϬϬ Ϭ ϮϬϬϱ ϮϬϬϲ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ Firm & Option Backlog (Equivalent Units) 12000 10000 8000 Option 6000 7033 6908 6815

  20. Slide 20: Y-over-Y comparison of Open Slots

    Y-over-Y comparison of Open Slots Firm Order position (at this time) improved from 2010 2010 Plan 2011 Plan

  21. Slide 21: Expecting 2011 to be primarily fleet replacements

    Bid Universe remains above 12,000 EU’s Expecting 2011 to be primarily fleet replacements Forecast 9181 EUs 2008 2009 2010 Bids in Progress 797 EUs Bids Submitted 1840 EUs Pipeline Subtotal 11818 EUs Options in Process 969 EUs Total Pipeline 12787 EUs Current as of March 13, 2011 • 2008 was the peak

  22. Slide 22: Competing in a Challenging Market

    Competing in a Challenging Market Investing to compete and grow Operational Excellence transformation to reduce costs and Inventory and capture margin • Company wide 5S completed and commenced Value Stream Mapping. • Quality systems redesign delivering build improvement, productivity increase and ov

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