CORPORATE PRESENTATION - MARCH 2020 GRANDEWEST.COM | VICINITYBUS.COM - GRANDE WEST TRANSPORTATION
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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
“Cutaway” Bus or modified to 30’-35’
The Vicinity is the only purpose-built heavy duty
Smaller mid-size bus in the market Larger
• Monocoque Frame • Lower Capital Costs
• Built on a Light Duty Truck Chassis • Big Bus Technology • Lower Operating Costs • 33% Higher Fuel Costs
• No standees • Compact Platform • Clean Diesel or CNG Powered • 30-40% Higher Capital Cost
• Costly to Operate • Right-Sizing fleets • Altoona Rated ‘Best-in-Class’ • Higher Maintenance Costs
*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’ North American Vicinity Electric (2020)
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
VICINITY 7 6.02 tough testing regime, as it essentially
Competitor A 34 15 5.54 performs 12 years and 500,000 miles of a
Competitor B 9 15 4.43
New York City heavy duty cycle upon
completion of the testing. It allows
Competitor C 29' 20 2 4.1
customers to measure performance and
Competitor D 12 6
estimate life cycle costing of the vehicle.
Competitor E 31 13
Competitor F 40’ 12 9
Competitor G 40’ 14 4 2.97 Vicinity Scores
Competitor H*(**) 4.8 • Best in Class: Fuel economy
Competitor I** 3 1 40 19 • Best in Class: Structural Durability
Competitor J 21 13 • Best in Class: Fewest repairs required
Competitor K** 32 7 4.28 (only 7 minor Class 3 vs. Competitors)
* 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.comVicinity Bus Deployment - USA
NY
13 units MA
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.comCorporate Timeline
• CNG Option
• US Customers
• Buy America + US Assembly
• Profitable Operations Q2, Q3
• Vicinity 27.5’ • $100M Backlog • Spartan Motors - US Manufacturing
• First BC Transit Order (15) • $20M RBC ABL • USA & Can Sales Reorganized
• $54M annual revenue • Medium Duty Bus Announced (LT)
• Grande West Founded • Vicinity EV Announced
• BC Transit Strategic Partnership • Marketing in Canada • Executive Changes - Mr. Trainer CEO
• Vicinity 27.5’ Born • Vicinity 30’ Model • Buy America Orders increasing
• Weichai Agreement
2008 2013 2015 2017 2019
2010 2014 2016 2018
2020
• CMVSS Certified • Altoona Best in Class
• Vicinity Prototypes Delivered • Large multi-year contracts • USA Private Customer
• Vicinity 35’ Model Vicinity order valued $40M
• FMVSS Certified • Alliance Bus Group Distribution
• Buy America Orders/Audit
• Executive/Board Changes:
• CFO, Dan Buckle
• Direct Sales Eastern Canada
• $70M annual revenue
TSX-V:BUS OTC:GWTNF
www.grandewest.com | www.vicinitybus.comOur Partners
Spartan Motors Inc. - U.S. Manufacturing
• Specialty vehicle manufacturing and assembly
• Employs approximately 2,500 associates
• Operates facilities in Michigan, Indiana,
Pennsylvania, South Carolina, Florida, Missouri,
California, Arizona, Texas, Nebraska, South Dakota.
Saltillo, Mexico; and Lima, Peru.
• Nasdaq listed: SPAR
TSX-V:BUS OTC:GWTNF
www.grandewest.com | www.vicinitybus.comOur Partners
Weichai - Manufacturing Partner
• Multi-Billion Dollar Company
• Over 80,000 employees internationally
• Global service, support and warranty network
• Produces over 5,000 buses / year internationally
• World’s largest HD engine manufacturer
TSX-V:BUS OTC:GWTNF
www.grandewest.com | www.vicinitybus.comOur Partners
USA Distributor
• One of the largest U.S. retail bus resellers
• National distribution agreement
• Sales, parts and service
TSX-V:BUS OTC:GWTNF
www.grandewest.com | www.vicinitybus.comSelected Quarterly Information Q3 (September 30, 2019)
TSX-V:BUS OTC:GWTNF
www.grandewest.com | www.vicinitybus.comTransition & Focus
Recent Accomplishments Important Milestones
• 2017 and 2018 record revenues and deliveries • Successfully completed a mock audit for Buy America compliance
• Strong balance sheet with $14M in working capital • Won U.S. public transit contracts (Georgia and Iowa)
• Established world class manufacturing partners • Received firm orders for Buy America buses (Mississippi)
• Increasing margins • Went to direct sales model for Eastern Canada
• Parts and Service sales increasing
Current and Future
• Canadian and U.S. sales focus, strengthen organization
• Vicinity LT (Crossover Vehicle) medium duty launched
• Vicinity EV (100% electric) under development
• Established world class manufacturing partners
TSX-V:BUS OTC:GWTNF
www.grandewest.com | www.vicinitybus.comManagement and Board of Directors
William Trainer – (Founder) CEO, President and Director
30+ years of business leadership with extensive overseas Andrew Imanse – Director
import and export experience Former President of Thor Industries Bus Group, grew the El
Dorado bus business to $500M/year
John Wang – VP Chief of Engineering
Accredited Mechanical Design Engineer and previously senior Joe Miller – Director & Chairman
mechanical, designer and project manager Global businessman with over 30 years in the construction field
Dan Buckle – CFO Christopher Strong – Director
Experienced pubic company finance executive and former PwC Senior executive with 30+ years experience in CEO, CFO and
audit manager board roles with startups, acquisitions, IPOs, turnaround and
sales.
James White - Director
Mr. White has extensive experience as a corporate director for John LaGourgue – Director
public companies and is currently serving as Managing Partner 20+ years in management, sales, and capital markets
with Baynes & White, a Toronto, Ontario based benefits and
pension actuarial consulting firm.
TSX-V:BUS OTC:GWTNF
www.grandewest.com | www.vicinitybus.comCapital Structure (as of November 28th, 2019)
Symbol TSXV: BUS / OTC Pink: GWTNF
Shares Issued and Outstanding 74,530,409
Stock Options/RSU/DSU 3,909,802 Notes:
1. Unsecured $628,000, March 2020 8% coupon, 5
Convertible Debentures 1 1,903,030 year, $0.33 strike
2. Includes management, directors and original
founding members
Fully Diluted 80,343,241
Insider/Founder Ownership 2 ~30%
TSX-V:BUS OTC:GWTNF
www.grandewest.com | www.vicinitybus.comContact
Head Office Shareholder Communications
Grande West Transportation Joe Bleackley
3168 262nd St. Director of Capital Markets
Aldergrove, BC V4W 2Z6
Phone: (604) 288 8043
Phone: (604) 607-4000 Email: IR@grandewest.com
Fax: (604) 607-4004
Email: info@grandewest.com
Transfer Agent Corporate Counsel Auditor
Computershare Cassels Brock & Blackwell LLP PricewaterhouseCoopers LLP
100 University Avenue, 8th Floor Suite 2200, 885 West Georgia St. Suite 1400, 250 Howe Street
Toronto, ON M5J 2Y1 Vancouver, BC V6C 3E8 Vancouver, BC V6C 3S7
Phone: (416) 263-9200 Phone: (604) 691-6106 Phone: (604) 806-7780
TSX-V:BUS OTC:GWTNF
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