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Delivering Innovative
Transportation
Solutions
TSX.V: BUS
December 2013
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Forward-Looking StatementsThis 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 prospectus dated November 27, 2013 of the Company on SEDAR at www.sedar.com.
Although the forward-looking statements contained in this presentation are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. These forward-looking statements relate only to events or information as of the date on which the statements are made and, except as required by securities legislation, the Company assumes no obligation to update or revise them to reflect new events or circumstances. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement.
DisclaimerThis 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.
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Canadian transit agencies are seeking to modernize transit fleets by replacing
traditional 40 foot, and smaller cutaway buses with compact, low
emission, easier accessible vehicles.
Public Transit in Canada
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Introducing a New Kind of Bus
Accessible27.5 Feet
Compact
Non-Cutaway
Durable
Canadian
Fuel Efficient
Tested
Safety Certified
Kneeling
Economic
Green
Recommended
Delivered
Ordered
Open Floor
Easy Handling
AvailableInnovative
Proven
Customized
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We’ve Hit the Road Running
August 2013
15 Vicinity’sDelivered to BC Transit.
$3.8 MillionRevenues from initial order.
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Our Beginnings
Grande West was formed in 2008 as a response to an RFI from BC Transit.
1,030+ fleet size.
$47.6 million total capital expenditures
in fiscal year ending March 31, 2013.
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3 Years R&DDesigned and developed
based upon critical input and feedback by BC Transit.
Money and Time Well Spent
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Over $3.0 Million
Raised by Grande West’s 5 original partners, which
funded engineering, design and testing.
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Quality & Cost Savings
Canadian designed & engineered.
High quality North American equipment.
Cost-effectively assembled in China.
Yaxing Motor Coach• Large-scale bus manufacturer in
China.• Listed on Shanghai Stock Exchange
(SHA:600213).• 2012 Revenues: USD $149 M
• (USD $1 = RMB 6.6315)
Quality controls by Grande West.
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21 Month Beta Tour and Results
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Launched February 2010 by BC Transit.Began during Winter Olympics & Paralympics.Accessibility demands, high volume.
One Vicinity prototype driven over 90,000 km. Variety of terrains and weather conditions.
Completed October 2011.Positive test results shown.Substantial long-term cost savings.
Improved visibility and manoeuvrability, smoother ride.
Safety certifications granted.Canadian Motor Vehicle Safety Standards.
Cummins EPA Engine Compliance Approval.
Commercial Vehicle Safety Inspection.
Initial order secured October 2011.
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Market Opportunity
Public Transit• Essential service with predictable
funding. • Budgets approved years in
advance. • Replaceable product.
Small Sized Buses• Ability to match capacity with
demand. • Higher manoeuvrability on narrow
streets and within communities. • Lower capital costs. • Lower maintenance costs. • Minimizes environmental impact.
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2010 = 18,000 transit buses Avg. bus service life = 10 years Rate of replacement/year = 10%~1,800 buses in need of replacing each year in Canada
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Additional Market Opportunities
AirportShuttles
SeniorCentres
TourGroups
SchoolBuses
Disability
Services
Public Transit
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Market Competition
Motivation to build a competing product is low.• Already successfully building larger sized bus models.• Most companies are much larger in size with production
backlogs for 40 foot buses.
Production of a new bus model would take ~3 years.• Corporate constraints.• Government safety regulations.
Investor Presentation 2013
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Standard Sized 40 Foot Buses
Do not address market need for compact, cost-efficient, easily
manoeuvred bus.
Do not address market need for lower emission, easily
accessible, longer lasting bus.
• Only 60% capacity of the Vicinity.• Built upon incomplete truck chassis
by second stage manufacturers.• High floor, wheelchair lifts, ramp
issues.
Smaller Buses On A
Cutaway Chassis
Investor Presentation 2013
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Company ElDorado National New Flyer ARBOC
Headquarters Aldergrove, BC Riverside, CA Winnipeg, MB Middlebury, IN
Ticker TSX.V: BUS NYE: THO TSX: NFI Private
Bus Model Vicinity EZ Rider II MiDi Spirit of Liberty
Status AvailableCertified
AvailableCertified
AvailableCertified in
U.S.
Not AvailableNot Certified
Price $250k $375 - $425k $325k+*estimated
$300k+*estimated
Length 27.5 feet 30.7 feet 30 feet 28.3 feet
Competition Matrix
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Note: Comparables in size of bus and information obtained from public sources except for prices as noted as estimated.
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The Grande West Difference
Affordable
InnovativeAccessible
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AccessibleAffordable Innovative
Affordable
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Half the price of a 40 foot bus, over twice the lifespan of a cutaway bus, and lower operating costs than both a 40 foot bus and cutaway bus.
$250,000 compared to $300,000+.
2 year bumper to bumper warranty, 10 year life span.
Cleaner burning and improved
fuel efficiencies.
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AccessibleAccessibility features to accommodate Canada’s aging population and mobility challenged individuals.
Tiered theatre forward facing
seating and open floor concept.
Easy access, stable ramp.
Full accessibility for wheelchairs,
strollers and walkers.
AccessibleAffordable Innovative
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Innovative
Extremely low decibel rating.
Offers the working features of a 40 foot bus with the compact packaging of a cutaway bus.
AccessibleAffordable Innovative
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Interiordehumidifier.
Tight turning, easy handling and
manoeuvrability.
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Sales Process
Sales Model: $250,000 paid in three installments.
Grande West does not use its own capital for the cost
to manufacture and a carries a minimal inventory of buses.
25%Deposit paid to Grande West at date of order - 25% cost to manufacture advanced to Yaxing that carries work-in-process cost.
65% Payment on delivery acceptance date – Yaxing paid remaining assembly costs with the balance to Grande West.
10% 60 day holdback from delivery acceptance date – Paid to Grande West.
Opening of bid to delivery
acceptance is approximately
9 to 12 months.
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Business Model
High Gross
Margins
Low Inventory
Costs
Low Overhead
Costs
Grande West - 20%**Estimated for fiscal year-end Aug 31/14
Buses manufacturedto order upon
confirmation of a purchase order.
Less than 20 people required to handle
$50 million in sales.
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Western CanadaGrande West acting as its own distributor.
Eastern CanadaCity View Sales & Service appointed as distributor.
Sales PipelinePending potential sales following extensive discussions and current product testing.Sales and Marketing strategies planned for additional transit authorities across Canada.
Cross-Country Sales and Marketing
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Capitalization Table
Shares % of Company (Fully Diluted)
Founding Directors & Officers 10,650,000 26.6%Other Founders 7,350,000 18.4%Private Placement ($1,410,000 at $0.25) 5,640,000 14.1%IPO (5M at $0.50 – December 2013) 10,000,000 25.1%Private Placement(300K at $0.50 – December 2013) 600,000 1.5%Shareholder Loans & Corporate Advisory Fee(800K in Shares for Debt at IPO price at $0.50)
1,600,000 4.0%
Total Issued & Outstanding Shares 35,840,000 89.7%Broker Warrants(equal to 8% of IPO Shares plus outstanding 333,600 Agents’ Options)
1,133,600 2.8%
Stock Options 2,998,400 7.5%
Fully Diluted 39,972,000 100.0%
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Initial Public Offering
President’sList,
9.70%
Institutional; 33%Retail, 57.30%
Completed December 2013• Initial target $3 to 4M
•Raised $5.3M
•Oversubscribed
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Designed, produced and
received certifications for
the Vicinity.
Oversubscribed IPO and
successful completion of public listing.
Successfully completed 21 month beta
tour.
Awarded and completed initial order
from BC Transit.
Secured manufacturing arrangement with Yaxing
Motor Coach.
Secured Eastern Canadian
Distribution Agreement and
new orders.
5 Year Achievements
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Reach profitability in calendar 2014.
Increase sales, marketing and
operational staff.
Completion of a parts/service
center in Ontario.
Secure purchase orders in jurisdictions across Canada.
Actively market and
demonstrate the Vicinity.
Obtain safety certifications for the Vicinity in
the U.S.
2014 Objectives
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$3.8 million in revenues from
BC Transit’s initial order of
15 buses (delivered).
Increasing sales opportunities as Vicinity’s now on the road.
Growing market demand for
compact, fuel efficient, easy
accessible transit vehicles.
Experienced, committed and
invested management
team.
Quality built, Canadian product.
Focused on targeted sales across Canada.
Summary
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Management
William Trainer – Chief Executive Officer / President• 25 years of business leadership with extensive import and export experience.• Successfully pioneered and brought new products to Canada from Asia for 20
years.• Owned and managed heavy construction dealerships across Western Canada.• Extensive knowledge in business dealing with major manufacturers in Japan
and Korea.
John Sutherland – Chief Financial Officer• Held executive positions in a number of public companies, including President,
CFO, Corporate Secretary, Vice President, and Treasurer.• Director of numerous public companies with over 20 years of experience.• Co-founded Tekion, Inc. and served as its Vice President and CFO.• Certified General Accountant with an Engineering Diploma.
John Wang – Vice President, Chief Engineer• Certified Engineer with previous positions as mechanical engineer and
designer and project manager for various companies in China and Canada.• Extensive knowledge of the import and export business in the construction
attachment industry and Chinese business practices.TSX.V: BUS
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Board Of Directors
Joe Miller – Director• Global businessman with over 30 years in the construction field.• Manages a large diverse construction company in the Greater Vancouver area
with projects across North America.• Brings vast knowledge in negotiation skills and customer relationship building.
Michael Evans – Director• Principal of Evans & Evans, Inc., a boutique Investment Banking Firm.• Brings over 25 years of corporate finance, M&A and public company
management experience.• Chartered Financial Analyst, Chartered Business Valuator and Accredited Senior
Appraiser• Director and founder of several TSX Venture Listed Issuers.
Joanne Yan – Director• More than 15 years experience in managing public companies.• A senior corporate executive and an audit committee member with a number
of publicly traded companies in Canada.
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