Investor Presentation - April 9, 2018 TSX-V: BUS | OTC Pink: - - PowerPoint PPT Presentation

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Investor Presentation - April 9, 2018 TSX-V: BUS | OTC Pink: - - PowerPoint PPT Presentation

Investor Presentation - April 9, 2018 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


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TSX-V: BUS | OTC Pink: GWTNF

Investor Presentation - April 9, 2018

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

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

  • ther 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.

Forward Looking Statements

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Executive Overview

Grande West Transportation is a Canadian-based company which designs, engineers and manufactures mid- size, multi-purpose transit vehicles for sale to public and private enterprises in Canada and the US.

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Vicinity’s Position in the Bus Market

Cutaway Bus Traditional 40’ bus

  • r modified to 30’ or 35’

VICINITY

  • Monocoque Frame
  • Big Bus Technology
  • Compact Platform
  • Lower Operating Costs
  • Lower Capital Costs
  • Right-Sizing fleets
  • Clean Diesel or CNG Powered
  • Altoona Rated ‘Best-in-Class’
  • 33% Higher Fuel Costs
  • 30-40% Higher Capital Cost
  • Higher Maintenance Costs
  • Very Costly to Operate in HD ops
  • 5 year life cycle
  • Poor Access
  • Built on a Light Duty Truck Chassis

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Bus Market in North America - Summary

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Canada: Approximately 18,000 public transit agency buses U.S.: Approximately 120,000 buses - 60,000 public transit / 60,000 private transit Bus lifecycle is usually 10-12 years: ~1,800 in Canada, and ~12,000 in the US every year Public transit agencies are growing Competition: New Flyer (NFI.T), Rev Group (REVG), Nova Bus (Volvo), Gillig (Private) and cutaways

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

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Business Model

Grande West is positioned within a changing transit bus business model. The Right-Sizing concept, successfully applied by Southwest Airlines to change the airline business model, is being adapted by bus transit for many of the same reasons. In a comparison look, Grande West is supplying mid-size buses in much the same way that SouthWest and WestJet Airlines’ model demanded mid-size planes. Grande West has a considerable first mover advantage as the major bus manufacturers failed to recognize the trend. With a bus transit model that is moving towards Right-Sizing, Grande West is well positioned to satisfy demand and, with “Best-in-Class” designation, is capturing and dominating the mid-size bus market.

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

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Right-Sizing Trend

”Increasingly, transit systems are recognizing that the 40-foot bus is not a one-size-fits-all vehicle. It is excellent for high volume routes, but is big and unwieldy in residential neighbourhoods and presents a wasteful image when operating with few passengers. More and more systems are also realizing that service frequency builds ridership better than spatial coverage. In other words, more frequent service with smaller buses is far more attractive than less frequent service with larger ones. Smaller buses are perfect for this type of strategy and more and more systems are looking seriously at “Right-Sizing” their fleet by introducing smaller buses for portions of their route network that do not warrant 40-foot buses.”

  • Michael Roschlau, Grande West Strategic Advisor, former CEO of Canadian Urban Transit Association

“We are committed to creating more efficient transportation options for our customers. That means building a more highly layered, customized service model. These new Vicinity vehicles allow our bus operators to travel safely into neighbourhoods where our standard fleet could not easily navigate while offering more space than our current Mobility bus options.”

  • Keith Parker, Former GM and CEO of Metropolitan Atlanta Rapid Transit Authority (MARTA)
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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Deliveries and Backlog

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$7.5M Revenue $61 Backlog

36 Deliveries Backlog - 175

$54M Revenue $100M Backlog

153 Deliveries Backlog - 300

Q1 Reporting Soon $107M+ Backlog

50+ Deliveries Backlog - 300+

Q1 2018

2017

2016

2015

$18M Backlog

18 Deliveries Backlog - 60

$6M Backlog

6 Deliveries Backlog - 21

2014

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

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Weichai - Manufacturing Partner

  • Multi-Billion Dollar Company
  • Over 74,000 employees internationally
  • Global service, support and warranty network in place
  • Ships over 5,000 buses/year internationally
  • World’s largest HD engine manufacturer

USA - Alliance Bus Group

  • Exclusive distribution agreement
  • Buy America manufacturing in Atlanta (HQ)
  • One of the largest US retail bus sellers
  • National coverage, with 8 mega-dealers
  • MARTA and Atlanta Airport first Customers

Our Partners

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Altoona Test Results: Best-in-Class!

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MANUFACTURER FAILURES MPG CLASS 1 CLASS 2 CLASS 3 CLASS 4 VICINITY

7 6.02

Competitor A

34 15 5.54

Competitor B

9 15 4.43

Competitor C 29'

20 2 4.1

Competitor D

12 6

Competitor E

31 13

Competitor F 40’

12 9

Competitor G 40’

14 4 2.97

Competitor H*(**)

4.8

Competitor I**

3 1 40 19

Competitor J

21 13

Competitor K**

32 7 4.28

* Partial test no durablity ** 10 YEAR TEST

Vicinity Scores

  • Best in Class: Fuel economy
  • Best in Class: Structural Durability
  • Best in Class: Fewest repairs

required - only 7 minor Class 3 vs. Competitors The US Federal Transit Authority’s (FTA) Altoona test is an internationally recognized tough testing regime, as it essentially performs 12 years and 500,000 miles of a New York City heavy duty cycle upon completion of the testing. It allows customers to measure performance and estimate life cycle costing of the vehicle.

Full test results: Vicinity Altoona Test

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Canadian Government is strongly committed to a $20B long-term infrastructure plan to develop transformative and modern transit projects over the next 10 years

  • Vicinity is in 8 of 10 provinces’ systems Coast to Coast
  • Customers are already receiving additional funding, increasing demand
  • Up to 50% Government funding for eligible project costs
  • Bus Transit is a critical element in Canadian transit plans - Vicinity is

providing the solution

Grande West has cultivated and developed relationships with most transit authorities across the country. We expect to continue to receive new and repeat orders.

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Canadian Market

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

  • Buy America compliant manufacturing, Atlanta GA
  • MARTA (Atlanta) - top 10 in North America bought 10 Vicinity
  • Growing with Private Sector Sales
  • Atlanta Airport
  • LaGuardia Airport
  • West Palm Beach Airport
  • Brooklyn Navy Yard
  • Boston Private Operator
  • Multiple RFPs ongoing

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US Market

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Selected Yearly and Periodic Information (December 31, 2017)

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2017 Highlights

  • Record bus and parts revenue of $54,701,931 up 575% over CY 2016
  • Record Adjusted EBITDA of $1,084,845
  • Record deliveries of one hundred fifty two (152) Vicinity buses

12 months ended, December 31, 2017 4 months ended, December 31, 2016 12 months ended, August 31, 2016 Revenue $ 54,701,931 $ 2,983,831 $ 5,093,082 Gross profit 6,319,415 105,613 (69,291) Net loss and comprehensive loss (416,693) (1,757,630) (4,069,887) Basic and diluted loss per share (0.01) (0.03) (0.08) Cash and cash equivalents 5,223,350 2,217,394 316,444 Working capital 14,886,254 2,621,886 2,508,883 Total assets 46,962,090 10,381,913 9,775,663 Non-current financial liabilities 1,115,954 5,448,893 3,021,182

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Balance Sheet 2017 (December 31, 2017)

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ASSETS

Cash $5,457,010 Trade and other receivables 13,633,580 Inventory 19,458,133 Deposits and prepaid 3,865,524 Property and equipment, intangible 4,607,537 Total Assets 47,021,784

LIABILITIES

Accounts Payable and Accruals 13,025,856 Credit Facility 6,806,795 Current Deferred Revenue and Warranty 4,181,368 Short Term Loans 3,454,280 Total Current Liabilities 27,468,299 Long Term Liabilities 2,643,913 Share Capital and Equity 16,909,572 Total Liabilities and Equity 47,021,784

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Capital Structure (as at April 5, 2018)

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Symbol TSXV: BUS OTC Pink: GWTNF Shares Issued and Outstanding 72,160,409 Stock Options 4,563,750 Warrants 86,400 Convertible Debentures 1 1,903,030 Fully Diluted 78,713,589 Insider/Founder Ownership 2 ~30%

Notes:


  • 1. Unsecured $628,000, March 2020 8% coupon,

5 year, $0.33 strike

  • 2. Includes management, directors and original

founding members

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TSX-V:BUS OTC:GWTNF | www.grandewest.com

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Growing on a Solid Foundation

Unique Product

  • Best in Class Results achieved with FTA Altoona
  • Heavy duty mid-size bus with monocoque technology

Scalability

  • Increase production and delivery to meet growing demand

Solid Partnerships

  • Strong relationships with ABG and Weichai

Open Market

  • High demand in a very large addressable market

Innovation

  • Vicinity in 3 sizes, 2 propulsion systems - Clean Diesel and CNG
  • Crossover Vehicle (medium duty)

Experienced Team

  • Focused, experienced management and working board
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TSX-V:BUS OTC:GWTNF | www.grandewest.com

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Management and Board of Directors

Jean-Marc Landry – CEO

  • Over 20 years experience in public transit business

development, former head of sales for Nova Bus William Trainer – (Founder) President and Director

  • 25+ years of business leadership with extensive
  • verseas import and export experience

John Wang – VP Chief of Engineering

  • Accredited Mechanical Design Engineer and

previously senior mechanical and designer/project manager Robert Mowat – VP Sales and Marketing

  • Over 20 years experience in public transit business

development, former VP Sales for Transdev Keith Parker – Director

  • Public Transit seasoned leader
  • Former CEO of MARTA

Andrew Imanse – Director

  • Former President of Thor Industries Bus Group
  • Grew the El Dorado bus business to $500M/year

Joe Miller – Director & Chairman

  • Global businessman with over 30 years in the construction

field John LaGourgue – VP Corporate Development, Director

  • 20+ years in management, sales, and capital markets
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TSX-V:BUS OTC:GWTNF | www.grandewest.com

Contact

Head Office Grande West Transportation 3168 262nd St. Aldergrove, BC V4W 2Z6 Phone: (604) 607-4000 Fax: (604) 607-4004
 Email: info@grandewest.com Investor Contact John LaGourgue
 VP Corporate Development Phone: (604) 607-4000 Email: jlagourgue@grandewest.com

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Transfer Agent Computershare 
 100 University Avenue, 8th Floor Toronto, ON M5J 2Y1 Phone: (416) 263-9200 Corporate Counsel Cassels Brock & Blackwell LLP Suite 2200, 885 West Georgia St. Vancouver, BC V6C 3E8 Phone: (604) 691-6106 Auditor PricewaterhouseCoopers LLP Suite 1400, 250 Howe Street Vancouver, BC V6C 3S7 Phone: (604) 806-7780