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NFI Investor Update Q2-2016

North America’s leading and Motor Manufacturer and Parts Distributor

August 11, 2016

Forward Looking Statements and Non-GAAP Measures are defined in APPENDIX B . 1

+ NFI Investment Thesis

° North Americas’ #1 heavy duty transit bus brand, #1 motor coach brand and #1 Leading Share in aftermarket parts and service supplier Diversified >70,000 vehicles (transit buses and motor coaches) currently in service with Markets ° ~50% share of Canadian and US installed base ° Founded in the 1930’s, NFI and MCI have established relationships with well Deep nearly all domestic transit authorities and specifically 24 out of 25 of the largest Relationships agencies operate , NABI, Orion or MCI buses or motor coaches with High Quality ° Strong reputation and long standing relationship with hundreds of motor coach Customer Base operators in Canada and US operating MCI or motor coaches ° Leading in-house engineering and new product development capability Broad ° Integrated aftermarket parts and services operation Product Offering ° Compliant with Buy-America and policies regarding Canadian content with Technology Leadership ° Offer the industry’s widest range of green propulsion options: diesel, natural gas, electric trolley, diesel-electric hybrid, and now battery-electric Experienced ° Successful track record of positioning the business for growth and increased Team poised for profitability Growth & ° Extensive LEAN transformation and OpEx experience with proven ability to Diversification complete accretive acquisitions and achieve synergies

Strong Financial ° Proven financial performance and low leverage. metrics ° Strong/Predictable cash flow to support rapid deleveraging and dividends 2

Company Overview

Q2-16 LTM Highlights:

Revenue: US $1.92 B Adj EBITDA: US $229.3 M Return on Sales: 11.9% • North America’s #1 Transit Bus & Motor Coach manufacturer and parts supplier with the leading installed base of ~50% of transit buses Net Debt: $573 M and motor coaches currently in service (~70,000 buses) Leverage: 2.21 (Converts treated as Equity) ROIC: 14.0% • Public company with combined growth and yield focus. Significant Shareholders: Marcopolo S.A. =18.6%, Management/Board =1.9%). FCF: US $156.3 M Payout Ratio: 22.0% • Fully Diluted Market Cap: ~$C 2.6B. ~ 5,000 employees in Can/US

Bus Backlog: Common Share (TSX:NFI) Convertible Debt (TSX:NFI.DB.U) Firm : 3,035 EUs, $1.6 B Shares Outstanding: 59.9M Principal Outstanding: US $25.8 M Options : 6,975 EUs, $3.6 B 60-day average Daily Volume: ~ 305K 60-day average Daily Volume: ~US $280K (1) (3) Coupon: 6.25%, Yield: ~ 2.0% (3) LTM Book to-Build Ratio: 159% Dividend = C$0.95 /share , Yield: ~2.3% TSR (2) : 2016 YTD = 48% 2015 = 115%

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) Effective May 12, 2016 the Dividend increased from C$0.70 to C$0.95 per share annually. (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 August 5, 2016 3

+ NFI Business Strategy

Our Facilities, Our Market Our Business Our Revenue, Processes & Leading Positions and Revenue EBITDA and Products in Bus/Coach/Parts Stream CashFlow 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). 4

NFI Strategic Plan and Execution has delivered solid TSR

Total Shareholder Return (1) Cultural & Structural Change

700.0 ° Adopted Stakeholder Model. 663.6 ° Commitment to Culture, People & LEAN operations 600.0 ° Migrated Capital Structure from Income Deposit Security (yield only focus) Common Share (Growth and Yield)

500.0 Strategic Acquisition's

400.0 ° NFI's first acquisition enhanced part fabrication capability and capacity ° 19.9% equity investment in NFI by a

TotalReturn 300.0 leading global bus and coach body manufacturer 200.0 ° NFI acquired Orion’s parts business from Daimler 136.9 ° NFI acquired US manufacturer of heavy- 100.0 S&P/TSX Composite duty transit buses and parts distributor ° NFI acquired North America’s leading Investment -- manufacturer of motor coach and Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 parts/service support

Source: FactSet, Company filings

1. Total shareholder return includes capital appreciation and dividends paid. 2. Calculated using closing TSX market price as at August 7, 2016 5

#1 Market Share in Transit Bus

Heavy-Duty: Xcelsior ® Medium-Duty: MiDi ®

® ¢ Launch in 2009 based on >20 years experience with ¢ JV with Alexander Dennis (UK) to introduce MiDi to low floor transit buses North America in 2014

¢ Offered in 35’, 40’, and 60’ lengths ¢ 30’ and 35’ low-floor medium duty bus, tested to HD

¢ Primary targets is metropolitan & urban fleets standards. Primary target is municipal/ & commercial shuttles ¢ Typical sale price of approx US $450K for 35’/40’ and US $700K for 60’ articulated ¢ 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

Average Age of the HD Transit Fleet: US = 7.8 years, Canada = 7.3 years Source: APTA Public Transportation Factbook 2016

3% 19% 45%

33% Orion Parts and NABI acquired by NFI in 2013

Source: New Flyer Database & Management Estimates 6

Transit Bus Market Segments in Canada and US

Transit Market Segments 24 of the 25 largest Transit Agencies and primary targets operate NF supported transit buses

Metropolitan Urban Municipal Fleets Fleets Fleets 17 operators 200 operators 900+ Operators 39% of installed fleet 45% of installed fleet 16% of installed fleet

New market entrants focusing only on battery-electric buses:

Source: New Flyer Database & Management Estimates 7

#1 Market Share in Motor Coaches

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

° Targets the mid-range to luxury segments ° Targets the mid-range segment ° Trade-in option to support new coach sales ° J Model is the #1 selling coach in the N.A. ° “Buy America” compliant ° Coaches are refurbished at MCI’s service private market ° D Model is the #1 selling coach of all time in N.A. centers and various 3 rd parties ° NA Distributor of Daimler’s SETRA coaches ° Transit authorities ° Value customers in the private market ° Tour and charter operators ° Universities ° Small private fleets ° Hotels and casinos ° U.S. Federal Government ° MCIU sells approx 350 pre-owned units annually ° Inter-city line-haul operators ° Correctional facilities ° Contract carriers

Motor Coach Share: 2015 market is ~2,265 units Active Canada/US Motor Coach Fleet ~55,500 units

Average Age of the Motor Coach Fleet: US and Canada = 9 years Source: ABA Motorcoach Census March 2015 Turkey 9%

Netherlands & Macedonia 24% 38% 50% 1% 26% 23%

29%

Source: MCI Database & Management Estimates Canada & US 8

Motor Coach Market in Canada and US

Market Segments and primary targets Private Market Segment Definitions

Fixed Route/ Tour & Transit Conversion Line Haul Charter

12% of 2% of 34% of 52% of installed fleet installed fleet installed fleet installed fleet

Public Private Private Private

Source: MCI Database & Management Estimates 9

+ Annual Deliveries and Market Demand

Transit Bus EUs delivered in Can/US Motor Coaches delivered in Can/US

7000 7000 6,236 6,032 5,933 6000 5,816 Total 6000 5,388 5,373 5,347 5,284

5,212 Industry 5,154 5,128 5,109 5,065 5,010 5,009 4,797 5000 4,723 5000 4,333 4,047 4000 4000 2,990 3000 2,824 Total 3000 2,485 2,381 2,451 2,437 2,330 2,311

2,257 Industry 2,191 2,099 2,164 2,048 2,051 2,023 2,003 1,926 1,938 1,852 1,820 1,864 1,773 1,752 1,811 1,731 1,656 1,584 1,566

2000 1,543 1,583

2000 1,475 1,500 1,442 1,343 1,272 1,208 1,050 1000 935 1000 1,492 1,862 1,767 1,190 1,479 1,514 1,022 1,050 1,292 1,056 1,012 753 811 633 592 686 821 802 856 0 0

Public Bid Universe & Active Opportunities (EUs) 2009-2016 US Federal Funding for Transportation

NFI forecasted Operator RFPs Bids submitted EU buys in Issued. EUs for Proposals by NFI and EUs awaiting next 5 years in development selection

Source: MCI Database & Management Estimates 10

+ Public Customers Book-to-Bill and Backlog

Book-to-Bill >100% for 13 of last 14 Quarters

Total Backlog (Firm and Options)

Includes MCI backlog

Note: US Customer deferred Order was removed from backlog IN 2013 following 5 years of inaction. 11

+ Most comprehensive Parts & Support Services in the industry

Aftermarket Parts Product Support Services

¢ Widest transit bus and motor coach product ¢ Publications: Wide range of customized parts, assortment and industry leading distribution network maintenance and operational documentation. New with shortest delivery times. Flyer publications are the industry standard.

¢ Field Support: Product acceptance, field support, ¢ Added value through Unique offerings (Kits, Mid-life field engineering and warranty management. upgrade programs, Vendor Managed Inventory, KanBan, etc). ¢ Training: Operator and maintenance training provided in connection with new bus sales or aftermarket support (On-the-job, Classroom, eLearning, etc.).

¢ New Flyer Connec t: On-board system that permits real-time monitoring of the bus driver and vehicle performance to help improve driver safety, driving efficiency, and reduce fuel use and maintenance costs

¢ MCI Service Centers: Nationwide footprint with service centers, distribution facilities and over 3,000 emergency response partners 12

+ Manufacturing, Parts & Service Footprint

MCI - , MB NFI - Winnipeg, MB Parts Fabrication, MCI D Model Shell Assembly Parts Fabrication and Bus Shell Assembly Complete J Model manufacture New Product Development New Product Development Parts Distribution

AB Montreal, PQ MCI Service Center Renton, WA SK MB QC NFI Service Center ON

Arnprior, ON NFI Service Center Winnipeg, MB ND Frank Fair Fiberglass MN Fabrication NY Brampton, ON NFI Parts Distribution

` PA NJ Blackwood, NJ MCI Service Center Fresno, CA IN OH NFI Parts Distribution CA IL WV East Brunswick, NJ MCI Parts Distribution KY Ontario, CA Delaware, OH NFI Completion NABI Parts Distribution & Service Center Hebron, KY AL NFI Parts Distribution Los Alamitos, CA Louisville, KY MCI Service Center Pembina, ND TX FL MCI Parts Distribution MCI D Shell Completion Anniston, AL Des Plaines, IL NFI Bus Manufacture MCI Service Center St Cloud, MN NFI Bus Manufacture

Winter Garden, FL Crookston, MN Dallas, TX Elkhart, IN MCI Service Center NFI Bus Completion MCI Service Center TCB Part Fabrication 13

+ Environmental Commitment: Green Propulsion Options

Clean Diesel Natural Gas Electric-Trolley Hybrid-Electric Battery-Electric

Clean Natural Electric Hybrid All Diesel Gas Trolley Electric Electric

Xcelsior

MiDi

D Model

J Model

Additional propulsion options currently being evaluated for NFI MiDi and MCI J Model 14

+ Financial Performance

Sales ($M US) Return on Invested Capital

2500 ROIC = Net operating profit after tax Average invested capital for the period 1,924

2000 14.0% 14.0% 1200 1,451 1,539 363 12.2% 12.0% 1500 8.5% 1000 1,199 322 10.0% 8.6% 319 800 865 Millions 215 8.0% 1000 6.2% 600 119 1,561 6.0% 957.9 1,217 400 1,132 4.0% 706.6 712.0 500 984 641.5 746 547.6 200 2.0%

0 0.0% 0 2012 2013 2014 2015 2016 Q2 LTM 2012 2013 2014 2015 2016 Q2 LTM Bus Aftermarket Average Invested Capital forReturn the period on Invested Capital

Quarterly Adj EBITDA ($M US) Adj EBITDA ($M US)

250 229 Adjusted EBITDA USD

$240 229

$220 200 70 $200 188

$180 151

$160 151 150 142 $140 131 119 107 61 $120 108 109 107 95 99 Millions 95 100 $100 75 50 $80 71 72 61 31 159 63 62 62 60 80 $60 68 50 20 $40 90 45 37 39 36 64 $20 35 31 57 24 27 26 41 17 16 18 20 $0 14 14 15 2012 2013 2014 2015 2016 0 2012 2013 2014 2015 2016 Q2 LTM Adjusted EBITDA LTM Adjusted EBITDA Bus Aftermarket 15

+ Cash Flow Performance

2016 Q2 LTM Adjusted EBITDA to Free Cash Flow ($M)

250 229.3 35.6 191.9 200

Millions 20.3 156.3

150 39.2 11.1 2.5 100

50

-

Free Cash Flow and Dividends ($M C) 250.0

191.9 200.0 NFI Annual Dividend 150.0 108.3 Increased 35.7% from $.70/share to $.95/share 65.5 100.0 on May 12, 2016 45.1 (now paid quarterly) 27.1 50.0

33.1 30.7 32.5 33.8 42.2 0.0 2012 2013 2014 2015 2016 Q2 LTM

Free Cash Flow Dividends 16

+ Debt and Total Leverage

Total Leverage Ratio does not include Convertible Debenture as debt.

Under NFI Senior Credit Agreement Total Debt ($US M) Total Leverage must be maintained Total Leverage Ratio below 4X Adj EBITDA $1,000 3.5 $900 3 $26M Convertible Debenture $800 issued in Jun-12 @ 6.25%. $700 2.5 Convert price $US10/share $600 2 $343M Revolver facility $500 used to manage working capital $400 1.5 fluctuations ($91M outstanding) $300 1 $482M Senior secured term loan $200 0.5 $100 $0 0 2010 2011 2012 2013 2014 2015 2016 Q2

IDS Debt Bachelor Bonds Senior Term Loan Revolver Convertible Debenture Total leverage ratio 17 APPENDIX A

Canadian and US Bus Market Segments

Approx Annual Bus Type Deliveries (EUs) NFI Strategic Actions ~30,000 - 35,000 since 2011

Cutaways MiDi JV with (Truck Chassis based) ~15,000 - 18,000 ADL to diversify

Invest in OpEx Medium Duty Acquired TCB 2 Convert Capital Transit and Shuttle ~400 - 500 Structure

Acquired Orion Heavy Duty 1 Parts & NABI Transit EU’s ~5,200 - 5,500 (single and articulated) 3 Acquired MCI

Motor Coach ~2,000 – 2,500 4 18 APPENDIX B + FORWARD LOOKING STATEMENTS, FINANCIAL TERMS, DEFINITIONS AND CONDITIONS

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 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 “EBITDA” are to earnings before interest, income taxes, depreciation and amortization, fair value adjustment for total return swap 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 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 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 deferred revenue, proportion of the total return swap realized 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 www.sedar.com .

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