Mr. Paul Soubry reports

NFI RELEASES ITS ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT FOR 2023

NFI Group Inc. has released its environmental, social and governance (ESG) report for 2023, which can be found at the company's website.

"To us, a sustainable business is one that creates value for today and the long-term with a focus on ensuring that we continually contribute to the well-being of our teams and communities. As a leader in zero-emission transportation and mobility solutions, we are committed to manufacturing products that have a positive environmental and social impact, while also ensuring we integrate environmental sustainability and equitable practices into our operations," said Paul Soubry, president and chief executive officer, NFI. "It is with great pride that we share our vision of a zero-emission future through innovation and responsibility in our sixth annual ESG report."

NFI's ESG report for 2023 provides highlights and milestones, as well as some specific projects and initiatives the company undertook in the year. The report focuses on the three main components of NFI's sustainability pledge, first adopted in 2006: "A better product. A better workplace. A better world." The company's pledge guides the company's daily actions, and long-term planning and drives continuing improvement.

Better product: In 2023, NFI delivered 878 zero-emission vehicle equivalent units (ZEBs), a 27-per-cent increase from 2022, and these ZEBs accounted for 22 per cent of the company's total deliveries. From 2015 to 2023, the company's ZEBs travelled more than 150 million miles and prevented the emission of billions of pounds of CO2 (carbon dioxide) into the atmosphere. Today, over 150 cities in six countries have an NFI ZEB in service or on order, and the company has installed over 72 megawatts of charging capacity.

Better workplace: Protecting and continually developing the company's most important asset, its people, is at the core of every business decision the company makes. In 2023, NFI invested $10.9-million in team member training, rolled out 46 new e-learning courses through the NFI Learning Institute, and organized numerous mental health and wellness events and activities. NFI focused on developing its work force by building diverse and talented candidate pipelines for a more inclusive and equitable workplace. This included development of the company's future work force through the sponsorship of the Canadian Welding Bureau Welding Foundation Mind over Metal youth camp.

Better world: The need to create a better world has become increasingly apparent and urgent in recent years. In 2023, NFI established a sustainability council to provide leadership and accountability to advancing and aligning NFI's sustainability and climate change programs into strategic decision-making processes; expanded its focus on supplier human rights by enhancing the company's supplier code of conduct, and creating a conflict and critical minerals policy; expanded NFI's diversity, equity and inclusion (DEI) landing page to increase visibility on DEI work across the organization; and continued the company's commitments to Canada's 50/30 challenge with a revised board diversity policy.

NFI is proud to support community, charitable and not-for-profit initiatives through community partnerships, sponsorships and customer support. Program support is centred on community, non-profit, volunteer, public service or charitable organizations focusing in the areas of youth, health and community development. In 2023, NFI continued to build on its partnership with United Way agencies, supporting 21 communities across North America, and raising more than $422,000.

"Two thousand twenty-three was a year of resiliency and recovery for NFI, but amidst the challenges, our ESG program saw significant advancements as we never lost sight of our commitment to sustainability, one of our core values," said Janice Harper, executive vice-president, people and culture, NFI. "Our ESG strategy has never been more important to driving long-term business value and we are excited to expand our impact in 2024 as we continue to live our sustainability pledge and build a better world of tomorrow."

To develop its ESG report, NFI consulted with a broad range of internal and external stakeholders on regional and global levels, including key internal departments, customers, suppliers, investors, creditors, community and other partners. This report has been reviewed and published with the approval of NFI's senior executives, NFI's sustainability council and the board.

About NFI Group Inc.

Leveraging 450 years of combined experience, NFI Group is leading the electrification of mass mobility around the world. With zero-emission buses and coaches, infrastructure, and technology, NFI Group meets today's urban demands for scalable smart mobility solutions. Together, NFI Group is enabling more livable cities through connected, clean and sustainable transportation.

With 8,750 team members in 10 countries, NFI Group is a leading global bus manufacturer of mass mobility solutions under the brands New Flyer (heavy-duty transit buses), MCI (motorcoaches), Alexander Dennis Ltd. (single- and double-deck buses), Plaxton (motorcoaches), ARBOC (low-floor cutaway and medium-duty buses) and NFI Parts. NFI Group currently offers the widest range of sustainable drive systems available, including zero-emission electric (trolley, battery and fuel cell), natural gas, electric hybrid and clean diesel. In total, NFI Group supports its installed base of over 100,000 buses and coaches around the world. NFI Group's common shares trade on the Toronto Stock Exchange under the symbol NFI, and its convertible unsecured debentures trade on the TSX under the symbol NFI.DB.

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