March 2020 After 28 Years of Service with the Company, Fifteen of Which As CFO

NFI GROUP INC. Annual Information Form March 16, 2020 TABLE OF CONTENTS BUSINESS OF THE COMPANY ............................................................................................................................... 2 CORPORATE STRUCTURE ..................................................................................................................................... 3 GENERAL DEVELOPMENT OF THE BUSINESS .................................................................................................. 4 Recent Developments ........................................................................................................................................... 4 DESCRIPTION OF THE BUSINESS ......................................................................................................................... 7 Industry Overview ................................................................................................................................................ 7 Company History ............................................................................................................................................... 10 Business Strengths .............................................................................................................................................. 10 Corporate Mission, Vision and Strategy ............................................................................................................. 13 Environmental, Social and Governance Focus ................................................................................................... 13 Products and Services ......................................................................................................................................... 14 Transit Bus and Motor Coach Manufacturing Operations .................................................................................. 14 Product Development and Innovation ................................................................................................................ 15 Aftermarket Parts and Support Services ............................................................................................................. 15 Customers ........................................................................................................................................................... 17 Forward Visibility of Orders and Backlog ......................................................................................................... 18 Bus and Motor Coach Sales and Marketing ....................................................................................................... 19 Aftermarket Sales and Marketing ....................................................................................................................... 21 Facilities and Manufacturing Process ................................................................................................................. 21 Product Warranty and Other Contractual Provisions ......................................................................................... 25 Bonding Requirements ....................................................................................................................................... 26 Materials and Suppliers ...................................................................................................................................... 26 Capital Expenditures .......................................................................................................................................... 27 People and Labour Relations .............................................................................................................................. 27 Pensions .............................................................................................................................................................. 28 Competition ........................................................................................................................................................ 28 Legal and Regulatory Matters ............................................................................................................................ 29 DESCRIPTION OF CAPITAL STRUCTURE ......................................................................................................... 36 Share Capital ...................................................................................................................................................... 36 Shareholder Rights Plan ..................................................................................................................................... 36 Book-Entry Settlement and Clearance................................................................................................................ 36 Dividend Policy .................................................................................................................................................. 36 Credit Facility ..................................................................................................................................................... 37 DIRECTORS AND OFFICERS ................................................................................................................................ 38 Directors and Officers ........................................................................................................................................ 38 Insurance Coverage and Indemnification ........................................................................................................... 41 AUDIT COMMITTEE AND AUDITOR’S FEES .................................................................................................... 41 Relevant Education and Experience of Audit Committee Members .................................................................. 41 Non-Audit Services ............................................................................................................................................ 42 External Auditor Service Fees ............................................................................................................................ 42 Audit Committee Oversight ............................................................................................................................... 42 Risk Management ............................................................................................................................................... 42 RISK FACTORS ....................................................................................................................................................... 43 Risks Related to General Economic and Market Factors ................................................................................... 43 Risks Related to the Business Environment ....................................................................................................... 46 Risks Related to Operations ............................................................................................................................... 49 Risks Related to Strategy .................................................................................................................................... 57 Risks Related to Financing ................................................................................................................................. 59 Risks Related to Capital Structure and Tax ........................................................................................................ 61 MARKET FOR SECURITIES .................................................................................................................................. 63 Common Shares ................................................................................................................................................. 63 AUDITORS, TRANSFER AGENT AND REGISTRAR .......................................................................................... 64 MATERIAL CONTRACTS ...................................................................................................................................... 64 LEGAL PROCEEDINGS .......................................................................................................................................... 65 INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ...................................... 65 INTERESTS OF EXPERTS ...................................................................................................................................... 65 ADDITIONAL INFORMATION.............................................................................................................................. 65 APPENDIX “A” ........................................................................................................................................................ 66 2 NFI GROUP INC. General The information, including any financial information, disclosed in this Annual Information Form is stated as at December 29, 2019 or for the year ended December 29, 2019, as applicable, unless otherwise indicated. Unless otherwise indicated, all dollar amounts are expressed in U.S. dollars and references to “$”, “US$” and “U.S. dollars” are to the lawful currency of the United States. References to C$ are to the lawful currency of Canada. References in this Annual Information Form to “we”, “us”, “our” or the

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