Why Invest in Zero Emissions David Warren Director

Why Invest in Zero Emissions? David Warren Director – Sustainable Transportation

About New Flyer 2

Propulsion Systems – 3 of 6 Are ZEBs! Low Emissions Zero Emissions 3

North American ZEBs – The Market is Moving Fast Annual ZEB Bus Deliveries - Forecasted 1000 500 65 57 100 2014 2015 2016 200 300 425 675 550 825/5800 = 14% market share by 2022 0 2017 2018 2019 2020 2021 4 2022

ZEB Market Growth Battery Electric Fuel Cell Electric Calendar Year Awards & Sales 2009 2014 146 2009 – 2014 10 2015 136 2015 12 2016 294 2016 25 Calendar Year Base Price Energy Storage Calendar Year Base Price 2010 $1. 2 mm 75 k. Wh 2010 $2. 2 mm 2016 $750 k 300+ k. Wh 2016 $1. 2 mm 5

Infrastructure / Wayside Equipment • Charging Standards Are Needed (Finalize by Q 2 2017) to Ensure Interoperability of Buses and Charging Equipment – SAE J 3105 – SAE J 2954 – SAE J 3068 Overhead Fast Charge Inductive Plug-In 6

Fuel Cell Autos Are Driving Costs Lower, Growing the H 2 Infrastructure 7

Zero-Emission Market Drivers and Market Restraints Legislative and Battery Leasing Executive Branch Pressure Extended Warranties FTA Lo. No and California e. Bus Funding Maintenance Cost of Diesel and CNG Favorable e. Bus Low-Emission Engines Early Adopter Experiences Plentiful Domestic Limited e. Bus Charging Standards Utility Supply of Funding Available Under Development Infrastructure Natural Gas to offset Higher Battery-Electric Complexity for Large Acquisition costs Range Limited Fleet deployments (Currently <50% of CNG / Diesel) 8

Why Does New Flyer Invest In Zero-Emissions? - #1 Sustainability is Engrained in Our Company Core Values 9

Why Does New Flyer Invest In Zero-Emissions? - #2 Increased Transit Ridership Benefits All § Enhanced Rider Experience Lower Noise − Less Vibration − Less Harshness − No Jerky Gear Shifts − § Operating ZEBs in Urban Cities and the Surrounding Communities has Clear Advantages Less Powertrain Noise − No Brake Noise − No tailpipe emissions − 10

Why Does New Flyer Invest In Zero-Emissions? - #3 Electric Propulsion Has Energy Advantages § Potential Energy savings projections up to $400, 000 over the life of bus § Reduced Dependency on Carbon Based Fossil Fuel § Opportunities for Energy Renewable Energy Technology 11

Why Does New Flyer Invest In Zero-Emissions? - #4 ZEB Pilot Deployments Have Gone Well 12

Why Does New Flyer Invest In Zero-Emissions? - #5 ZEB Partnerships Create Breakthrough Opportunities First 60 -Foot Zero-Emission Fuel Cell Electric Bus Built in North America Electric Motors Driving 2 -Axles for Enhanced Traction and Safety 13

Why Does New Flyer Invest In Zero-Emissions? - #6 ZEB Technology Works – And It Works Well! § Battery-Electric buses are here to stay − Key challenges are cost (improving), range (improving), peak demand power cost, and charging infrastructure/standards § Fuel Cell buses are Close Behind − Key challenges are cost (volume related), developing hydrogen infrastructure, and the hydrogen production costs 14

Why Does New Flyer Invest In Zero-Emissions? - #7 Investment Now Creates Opportunity to Leverage the for. Role Commercial e. Trucks § Market Transit Potential Plays a Key in Leading Heavy and Medium Vehicle Clean Air Changes § The Global Market for Medium and Heavy Duty Commercial Trucks is 2. 8 million units − Lower cost components and shared infrastructure is imminent 15

Collaboration Together Will Further Zero-Emission Buses Collaboration is the process of two or more people or organizations working together to realize or achieve something successfully. Collaboration is very similar to, but more closely aligned than, cooperation, and both are an opposite of competition. Political and Legislative Leaders Transit Agencies Regulatory Agencies Manufacturers and Technology Suppliers Most collaboration requires leadership. Energy Companies Teams that work collaboratively can obtain greater resources, recognition and reward when facing competition for finite resources. Utility Companies Source: https: //en. wikipedia. org/wiki/Collaboration 16 Transportation and Environmental Non-Profit Organizations

Thank You David Warren david_warren@newflyer. com 256 -473 -3246 17