Corporate Presentation March 2020 GrandeWest.com | VicinityBus.com TSX-V: BUS | OTC Pink: GWTNF
Forward Looking Statements This presentation contains ''forward-looking statements'', which reflect the expectations of management regarding Grande West Transportation Group Inc.’s (the “Company”) future growth, results of operations, performance and business prospects and opportunities. The words ''believes'', ''anticipates'', ''plans'', ''expects'', ''intends'', ''projects'', ''estimates'' and similar expressions are intended to identify forward-looking statements. These forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this presentation. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner to the availability of sufficient working capital to market the Company's products and provide after-sales maintenance and support services to the Company's customers, access to adequate services and supplies to operate the Company's business, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated costs of funds, availability of a qualified work force, and the ultimate ability to develop, manufacture and sell the Company's products on economically favourable terms. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under ''Risk Factors'' in the Company prospectus dated November 27, 2013 and which will be detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are or will be available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements there may be other factors that cause its performance not to be as anticipated. These forward-looking statements relate only to events or information as of the date on which the statements are made. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Disclaimer This presentation does not form part of any offer of securities, or constitute a solicitation of any offer to purchase or subscribe for securities. The sole purpose of this presentation, in paper or electronic form, is strictly for information. TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
Grande West Transportation is a Canadian company that designs and engineers mid-size multi-purpose transit vehicles for public and commercial enterprises. Grande West utilizes world class manufacturing partners to produce the Best-in-Class, Purpose-Built Vicinity bus.
Company Highlights We’re a Contract Manufacturer Unrivaled Flexible and Scalable Operating Platform • Unparalleled capacity to increase or decrease production with minimal overhead cost impact • No minimum production level commitments • World class manufacturing relationships • Low breakeven threshold Demonstrated Market Acceptance • Has achieved ~90% market share in core product market in Canada with growing pipeline in the U.S. • Established relationships with transit authorities • Best-in-class U.S. Federal Transit Agency (“FTA”) Altoona test results Substantial Upside from U.S. Market Opportunity • Manufacturing and distribution partnerships now in place to support aggressive growth agenda • Buy America compliance has been achieved • Provides long runway for growth representing large pipeline of opportunity Pure Play Business with Focused Market Niche • Cleansheet design approach has resulted in lower total cost of ownership vs. competitive offerings • Vicinity bus right-sized for key service niche to optimize operational performance • Outright leader in purpose-built heavy duty mid-sized bus offering in the market TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
Vicinity’s Market Positioning Traditional 40’ Bus or modified to 30’-35’ “Cutaway” Bus The Vicinity is the only purpose-built heavy duty mid-size bus in the market Smaller Larger • Monocoque Frame • Lower Capital Costs • 33% Higher Fuel Costs • Built on a Light Duty Truck Chassis • Big Bus Technology • Lower Operating Costs • 30-40% Higher Capital Cost • No standees • Compact Platform • Clean Diesel or CNG Powered • Higher Maintenance Costs • Costly to Operate • Right-Sizing fleets • Altoona Rated ‘Best-in-Class’ *The Vicinity LT 26’ & 28’ (medium duty, 8 year / 560,000kms) will be available in 2020 TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
Introducing New Products, Opening up New Markets Demonstrated Market Acceptance ~90% Market share in Canada Vicinity 30’ model Vicinity LT 26’ & 28’ Vicinity Electric (2020) North American total annual demand 25,000 buses / year *Source: ARBOC Management estimates TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
North American Bus Industry Snapshot § Adding electrification to current product mix is underway Near-term § Last stages of design for low floor Vicinity LT product opportunity Model Category Gasoline Diesel CNG Electric Vicinity 8.4m HD Available: Vicinity 9.14m HD Planned : Vicinity 10.06m HD Vicinity 10.67m HD Medium Vicinity LT Duty 40 Ft Model 12m HD 10.67m Motor Coach Tour Bus New Model Development Schedule LT 10.06m Electric 12m Transit 2019 2020 2021 The 12m transit bus model is the next significant product introduction TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
Tested for Service in North America Altoona Test Results: Best-in-Class (30’ Diesel model) The US Federal Transit Authority’s (FTA) FAILURES MANUFACTURER MPG Altoona test is an internationally recognized CLASS 1 CLASS 2 CLASS 3 CLASS 4 tough testing regime, as it essentially 7 6.02 VICINITY performs 12 years and 500,000 miles of a 34 15 5.54 Competitor A New York City heavy duty cycle upon 9 15 4.43 Competitor B completion of the testing. It allows 20 2 4.1 Competitor C 29' customers to measure performance and 12 6 Competitor D estimate life cycle costing of the vehicle. 31 13 Competitor E 12 9 Competitor F 40’ Vicinity Scores 14 4 2.97 Competitor G 40’ • Best in Class: Fuel economy 4.8 Competitor H*(**) • Best in Class: Structural Durability 3 1 40 19 Competitor I** • Best in Class: Fewest repairs required 21 13 Competitor J (only 7 minor Class 3 vs. Competitors) 32 7 4.28 Competitor K** * Partial test no durablity ** 10 YEAR TEST Full test results: Vicinity Altoona Test TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
Business Model • Grande West’s Vicinity bus costs significantly less, is more maneuverable, burns less fuel and emits less harmful emissions than a regular 40 foot transit bus • Unparalleled capacity to quickly increase or decrease production to meet customer demand with minimal overhead cost impact • No production facility overhead cost burden • No minimum production level commitments • Ability to deliver new products to market very quickly TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
Vicinity Bus Deployment - Canada TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
Vicinity Bus Deployment - USA NY MA 13 units 11 units CO 1 unit GA 23 units MS 7 units FL § U.S. is the growth market opportunity 3 units for Grande West § U.S. transit is ~5x larger than Canada Grande West Units per Region § Marketing is under way Marketing is Under Way TSX-V:BUS OTC:GWTNF www.grandewest.com | www.vicinitybus.com
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