NFI Investor Update. March 23, 2016 (TSX: NFI, TSX: NFI.DB.U) North America s leading Motor Coach Manufacturer and Parts Supplier

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1 0 NFI Investor Update (TSX: NFI, TSX: NFI.DB.U) North America s leading Transit Bus Manufacturer and Parts Supplier North America s leading Motor Coach Manufacturer and Parts Supplier March 23, 2016 Forward Looking Statements and Non-GAAP Measures are defined in APPENDIX A.

2 1 Overview and Fiscal 2015 Results Highlights: (includes MCI for 9 days in 2015) Revenue: US $1.54B Adj EBITDA: US $151.4M Return on Sales: 9.8% Net Debt: $701M Leverage: 2.91 (Converts treated as Equity) ROIC: 11.4% FCF: US $83M Payout Ratio: 31% Bus Backlog: (includes acquired MCI backlog) Firm: 2,462 EUs, $1.3B Options: 7,202 EUs, $3.6B LTM Book to-build Ratio:158% North America s #1 Transit Bus & Motor Coach manufacturer and parts supplier with the leading installed base of ~50% of transit buses and motor coaches currently in service (nearly 70,000 vehicles) Publicly traded with a combined growth and yield focus. Significant Shareholders: Marcopolo S.A. = 19.9%, Coliseum Capital = 9.6%, Management/Board = 1.9%). Fully Diluted Market Cap: ~$C 1.7B. ~ 5,000 employees in Canada & USA Common Share (TSX:NFI) Shares Outstanding: 55.8 M 60-day average Daily Volume: ~ 364K Dividend = C$0.70/share (1), Yield: ~2.3% (3) TSR (2) : 2015 = 115% 2014 =33%, 2013 =30% Convertible Debt (TSX:NFI.DB.U) Principal Outstanding: US $63.6 M 60-day average Daily Volume: ~US $145K Coupon: 6.25%, Yield: ~ 2.6% (3) Dec 18-15: NFI added to S&P/TSX Composite Index Mar 14-16: NFI added to S&P/TSX Equal Weight Industrials Index Mar 11-16: NFI Equity Options commenced trading on Montreal Exchange (1) Dividend increased from C$0.62 to C$0.70 per share annually and paid quarterly in March 2016, the first quarterly dividend on the common shares in the amount of C$0.175 per share is payable on April 15, 2016, to holders of record at the close of business on March 31, (2) Total Shareholder s Return ( TSR ) is calculated by the growth in capital assuming the dividends are reinvested each time they are paid. (3) Calculated using closing TSX market price as at March 18, 2016

3 Total Return 2 Strategic Execution has delivered significant Shareholder Return Total Return (1) Key Milestones NFI's first acquisition enhanced part fabrication capability and capacity in % equity investment in NFI by a leading global bus and coach body manufacturer NFI acquired Orion s parts business from Daimler in S&P/TSX Composite Investment Aug-12 Aug-13 Aug-14 Aug-15 NFI acquired US manufacturer of heavy-duty transit buses and parts distributor in 2013 NFI acquired North America s leading manufacturer of motor coach and parts/service support in December 2015 Source: FactSet, Company filings 1. Total return includes capital appreciation and dividends paid.

4 3 #1 Market Share in Transit Bus Heavy-Duty: Xcelsior Medium-Duty: MiDi Launch in 2009 based on >20 years experience with low floor transit buses Offered in 35, 40, and 60 lengths Primary targets is metropolitan & urban fleets Typical sale price of approx US $450K for 35 /40 and US $700K for 60 articulated JV with Alexander Dennis (UK) to introduce MiDi to North America in and 35 low-floor medium duty bus, tested to HD standards. Primary target is municipal/ & commercial shuttles Typical sale price of approx US $300K HD Transit Bus Share (2015 market is ~5,300 units) Active Canada/US HD Transit Bus Coach Fleet ~85,000 19% 3% 45% 33% Source: Management estimates

5 New York Los Angeles Chicago Seattle Philadelphia Toronto Newark Washington D.C. Montreal Vancouver Houston Minneapolis Ottawa Boston Baltimore San Francisco Edmonton Calgary Denver Las Vegas Pittsburgh Miami Orange County Phoenix Everett 4 Transit Bus Market Segments in Canada and US Market Segments and primary targets of the 25 largest Transit Agencies Other Orion New Flyer NABI operate NF supported transit buses 6000 Metropolitan Fleets 17 operators 39% of installed fleet Urban Fleets 200 operators 45% of installed fleet Municipal Fleets 900 Operators 16% of installed fleet New market entrants focusing only on battery-electric buses: *Quantities in Equivalent Units (EUs) Source: New Flyer Database & Management Estimates

6 5 MCI Acquisition Highlights and Strategic Rationale Transaction announced Nov 10, 2015 and closed on Dec 18, Revenue = ~$607M US: sold 1,146 coaches (452 Private, 340 Public, 345 Pre-Owned) with significant aftermarket Adjusted Purchase Price of US$469M. All cash consideration (implies ~6x multiple of estimated 2015 Adjusted EBITDA) NFI announced 12.9% annual dividend increase to C$0.70 per share and move to quarterly payment schedule in 2016 Fully committed financing for purchase price and refinancing of existing credit facilities: US$825M senior secured credit facilities maturing in 2019 ($482M term loan $343M revolver) Pro forma total indebtedness to combined Adj EBITDA of approximately 3Xat closing Growth Diversification Potential Synergies Combination provides leading position in North American for both Transit Bus and Motor Coach platforms Materially expands NFI s aftermarket parts and service business Significantly diversifies NFI s product offering and customer base with sales to private and public markets Installed base of over 42,000 transit buses (New Flyer, Orion and NABI) and 28,000 motor coaches (MCI) across Canada and the USA Targeted annual synergies of approximately US$10M to be realized through rationalization of corporate costs and further implementation of OpEx, sourcing, information technologies, and engineering expertise Collaboration and Sharing of Technology & Best Practices Global Relationships Combined approx 5,000 team members. Like-minded commitment to engineering, manufacturing excellence and customer service. MCI provides exclusive sales and service organization for Daimler s coaches in Can/USA (19.9% shareholder in NFI) has significant expertise in bus design, sourcing & manufacturing

7 6 #1 Market Share in Motor Coaches New Coach Private New Coach Public Pre-Owned Coach Targets the mid-range to luxury segments J Model is the #1 selling coach in the N.A. private market N.A. Distributor of Daimler s Setra coaches Tour and charter operators Hotels and casinos Inter-city line-haul operators Contract carriers Targets the mid-range segment Buy America compliant D Model is the #1 selling coach of all time in N.A. Transit authorities Universities U.S. Federal Government Correctional facilities Trade-in option to support new coach sales Coaches are refurbished at MCI s service centers Value customers in the private market Small private fleets MCIU sells approx 350 pre-owned units annually Motor Coach Share: 2015 market is ~2,265 units Active Canada/US Motor Coach Fleet ~55,500 units Turkey 9% Netherlands & Macedonia 24% 38% 50% 1% 26% 23% 29% Canada & US Source: Management estimates

8 7 Motor Coach Market Segments in Canada and US Market Segments and primary targets Transit Line Haul Tour & Charter Conversion 12% of installed fleet 34% of installed fleet 52% of installed fleet 2% of installed fleet Public Private Private Private

9 12-Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec-15 8 Annual Deliveries and Market Demand Transit Bus EUs delivered in Can/US Motor Coaches delivered in Can/US Total Industry Total Industry Transit Bus Bid Universe & Active Opportunities (EUs) Heavy Duty Bid Universe Motor Coach Bid Universe & Active Opportunities 25,000 20,000 15,000 10,000 NFI forecasted bus buys in next 5 years Bids submitted by NFI awaiting selection Operator RFPs Issued. Proposals in development - under construction - 5, Ongoing Bids Submitted Bids Forecast Source: Management estimates

10 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Combined Book-to-Bill and Backlog NFI/MCI Book-to-Bill >100% for 11 of last 12 Quarters Total Backlog (Firm and Options) LTM New Orders (EU) LTM Deliveries (EU) LTM Order Intake/Deliveries 350% 300% Includes acquired MCI backlog % % % % % 0 0% Note: US Customer deferred Order was removed from backlog IN 2013 following 5 years of inaction. Note: MCI Added December 18, 2015

11 10 Strategy: Optimize, Defend, Diversify & Grow 1. Offer Canadian and US operators the best buses, services and value in the industry Migrate from selling buses to providing solutions and deliver best value and support for life of our products focusing on lowest Total Cost of Ownership Provide complete offering: Bus ( Workhorses of the Fleet ) supported by Parts, Service and Valued Added services Lead the market in innovation, reliability and quality Excel at customer support, response and follow up with emphasis on aftermarket parts and services 2. Operate as a world class OEM using LEAN principles, a Quality Roadmap and a Safety Culture Be recognized as an Employer of Choice with an industry leading safety culture Excel in engineering, supply chain, strategic sourcing and appropriate in-sourcing Continuous pursuit of eliminating waste and cost reduction to improve competiveness Operate as a responsible, sustainable and environmentally conscious business 3. Perform while seeking Diversification and Growth Lead the North American transit bus and motor coach industries and deliver strong TSR to Shareholders Operate with an appropriate and flexible capital structure to grow the business Seek to diversify over long term to ensure longevity and sustainability: Product (type of bus) and/or Market (Public vs Private) and/or Geography (North America vs International).

12 11 The Industry s most comprehensive Parts & Support Services Aftermarket Parts Product Support Services Widest transit bus and motor coach product assortment and industry leading distribution network with shortest delivery times. Added value through Unique offerings (Kits, Mid-life upgrade programs, Vendor Managed Inventory, KanBan, etc). Publications: Wide range of customized parts, maintenance and operational documentation. New Flyer publications are the industry standard. Field Support: Product acceptance, field support, field engineering and warranty management. Service Centers: Nationwide footprint with service centers, distribution facilities and over 3,000 emergency response partners Training: Operator and maintenance training provided in connection with new bus sales or aftermarket support (Onthe-job, Classroom, elearning, etc.). New Flyer Connect: On-board system that permits realtime monitoring of the bus driver and vehicle performance to help improve driver safety, driving efficiency, and reduce fuel use and maintenance costs

13 12 Manufacturing, Parts & Service Footprint MCI - Winnipeg, MB Parts Fabrication, MCI D Model Shell Assembly Complete J Model manufacture New Product Development NFI - Winnipeg, MB Parts Fabrication and Bus Shell Assembly New Product Development Parts Distribution Renton, WA NFI Service Center AB SK MB ON QC Montreal, PQ MCI Service Center Winnipeg, MB Frank Fair Fiberglass Fabrication ND MN NY Arnprior, ON NFI Service Center Brampton, ON NFI Parts Distribution Fresno, CA NFI Parts Distribution CA IL IN OH ` WV PA NJ Blackwood, NJ MCI Service Center East Brunswick, NJ MCI Parts Distribution Ontario, CA NFI Completion & Service Center KY Delaware, OH NABI Parts Distribution Los Alamitos, CA MCI Service Center Pembina, ND MCI D Shell Completion TX AL FL Hebron, KY NFI Parts Distribution Louisville, KY MCI Parts Distribution St Cloud, MN NFI Bus Manufacture Des Plaines, IL MCI Service Center Anniston, AL NFI Bus Manufacture Crookston, MN NFI Bus Completion Dallas, TX MCI Service Center Elkhart, IN TCB Part Fabrication Winter Garden, FL MCI Service Center

14 13 Environmental Commitment through Propulsion Options Clean Diesel Natural Gas Electric-Trolley Hybrid-Electric Battery-Electric Clean Diesel Natural Gas Electric Trolley Hybrid Electric All Electric Xcelsior MiDi D Model J Model Additional propulsion options currently being evaluated for NFI MiDi and MCI J Model

15 14 Financial Performance and Outlook (includes 8 days of MCI for 2015) Sales ($M US) Adj EBITDA ($M US) ,451 1, , , , Bus Parts Bus Parts Bus Includes Corporate Overhead Return on Invested Capital 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 9.3% ROIC = 6.2% Net operating profit after tax Average invested capital for the period 8.6% % 12.2% Average invested capital for the period Return on Invested Capital Millions 2016 Volume Guidance: Total expected NFI/MCI annual deliveries : 2015A = 3,265 EUs (52 weeks) 2016F = 3,450 EUs (53 weeks) Total Aftermarket Parts revenue increase of 5%

16 Millions 15 Cash Flow Performance (includes 8 days of MCI for 2015) 2015 Adj EBITDA to Free Cash Flow ($M) Adjusted EBITDA (USD) Interest (USD) Income TaxesCap Ex (USD) Finance (USD) Lease (USD) Free Cash Flow (USD) For Ex (USD/CAD) Free Cash Flow (CAD) Free Cash Flow/Share ($C) Free Cash Flow and Dividends ($M C) $ $ $1.50 $1.00 $0.50 $ Free Cash Flow Dividends In 2011, NFI completed a noncash rights offering to facilitate conversion from an IDS to a traditional common share structure. Shareholders exercised approximately 89% of the Rights issued by tendering approximately C$242.3M principal amount of Subordinated Notes in exchange for approximately 39 million common shares. In 2013, Marcopolo S.A. acquired approximately 11 million newly issued common shares, representing a 19.99% stake in NFI.

17 16 Balance Sheet and Total Leverage Total Debt ($US M) $800 $700 $600 $500 $400 $300 $200 $100 $0 Total Leverage Ratio does not include Convertible Debenture as debt. Under NFI Senior Credit Agreement Total Leverage must be maintained below 4X Adj EBITDA Total Leverage Ratio $64M Convertible Debenture issued in 6.25%. Convert price $US10/share $343M Revolver facility used to manage working capital fluctuations ($180M outstanding) $482M Senior secured term loan IDS Debt Bachelor Bonds Senior Term Loan Revolver Convertible Debenture Total leverage ratio

18 17 Investment Thesis Leading Share in Diversified Markets North Americas #1 heavy duty transit bus brand, #1 motor coach brand and #1 aftermarket parts and service supplier >70,000 vehicles (transit buses and motor coaches) currently in service with approx 50% share of Canadian and US installed base Deep Relationships with High Quality Customer Base Founded in the 1930 s, NFI and MCI have established relationships with well over 380 transit authorities with 24 out of 25 of the largest transit agencies operating New Flyer, NABI, Orion or MCI buses or motor coaches Strong reputation and long standing relationship with hundreds of motor coach operators in Canada and US Product Offering and Technology Leadership Leading in-house engineering and new product development capability Integrated aftermarket parts and services operation Compliant with Buy-America regulations and provincial policies regarding Canadian content Offer the industry s most Green propulsion options: diesel, natural gas, electric trolley, dieselelectric hybrid & battery-electric Experienced Executive Team Successful track record of positioning the business for growth and increased profitability Proven ability to complete accretive acquisitions and achieve synergies with extensive LEAN transformation and OpEx experience Strong Financial Metrics Proven NFI financial performance. MCI acquisition was highly accretive transaction even before synergies Strong/Predictable cash flow to support rapid deleveraging and potential for increased dividends

19 APPENDIX A FORWARD LOOKING STATEMENTS, FINANCIAL TERMS, DEFINITIONS AND CONDITIONS 18 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 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 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 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 EBITDA are to earnings before interest, income taxes, depreciation and amortization, and unrealized foreign exchange losses or gains on non-current monetary items. References to Adjusted EBITDA are to EBITDA after adjusting for: 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 transitional costs relating to business acquisitions, product rationalization costs, impairment loss on equipment and intangible assets, realized investment tax credits ( ITCs ), equity settled stock-based compensation, past service costs, fair value adjustment to MCI s inventory, 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 EBITDA, 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, past service costs, 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, realized ITCs, fair value adjustment to MCI s inventory and principal payments on capital leases. However, EBITDA, 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 EBITDA, and Adjusted EBITDA 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 EBITDA and 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 EBITDA and Adjusted EBITDA and Reconciliation of Cash Flow to EBITDA and 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 EBITDA, 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 All figures are in U.S. dollars unless otherwise noted.

20 APPENDIX B 19 Canadian and US Bus Market Overview Bus Type Approx Annual Deliveries (EUs) Primary Manufacturers School Bus ~30,000-35,000 Cutaways (Truck Chassis based) ~15,000-18,000 Medium Duty Transit and Shuttle ~ Heavy Duty Transit EU s (single and articulated) ~5,200-5,500 Motor Coach ~2,000 2,500