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Delivering Innovative Transportation Solutions TSX.V: BUS December 2013.

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Presentation on theme: "Delivering Innovative Transportation Solutions TSX.V: BUS December 2013."— Presentation transcript:

1 Delivering Innovative Transportation Solutions TSX.V: BUS December 2013

2 TSX.V: BUS2 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 prospectus dated November 27, 2013 of the Company on SEDAR at 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. 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.

3 3 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 TSX.V: BUS

4 4 Introducing a New Kind of Bus Accessible 27.5 Feet Compact Non-Cutaway Durable Canadian Fuel Efficient Tested Safety Certified Kneeling Economic Green Recommended Delivered Ordered Open Floor Easy Handling Available Innovative Proven Customized TSX.V: BUS

5 5 Weve Hit the Road Running 15 Vicinitys Delivered to BC Transit. 15 Vicinitys Delivered to BC Transit. $3.8 Million Revenues from initial order. $3.8 Million Revenues from initial order. TSX.V: BUS

6 6 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. TSX.V: BUS

7 3 Years R&D Designed and developed based upon critical input and feedback by BC Transit. 3 Years R&D Designed and developed based upon critical input and feedback by BC Transit. 7 Money and Time Well Spent TSX.V: BUS Over $3.0 Million Raised by Grande Wests 5 original partners, which funded engineering, design and testing. Over $3.0 Million Raised by Grande Wests 5 original partners, which funded engineering, design and testing.

8 8 Quality & Cost Savings Canadian designed & engineered. Canadian designed & engineered. High quality North American equipment. High quality North American equipment. Cost-effectively assembled in China. Cost-effectively 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) 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. Quality controls by Grande West. TSX.V: BUS

9 9 21 Month Beta Tour and Results TSX.V: BUS 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.

10 10 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. TSX.V: BUS 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

11 11 Additional Market Opportunities AirportShuttlesAirportShuttlesSeniorCentresSeniorCentres TourGroupsTourGroupsSchoolBusesSchoolBusesDisabilityServicesDisabilityServices PublicTransitPublicTransit TSX.V: BUS

12 12 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

13 13 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

14 14 Competition Matrix TSX.V: BUS Note: Comparables in size of bus and information obtained from public sources except for prices as noted as estimated.

15 15 The Grande West Difference AffordableAffordable InnovativeInnovative AccessibleAccessible TSX.V: BUS

16 16 AccessibleAccessible Affordable Innovative Affordable TSX.V: BUS 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.

17 17 Accessible Accessibility features to accommodate Canadas 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. AccessibleAccessible Affordable Innovative TSX.V: BUS

18 18 Innovative Extremely low decibel rating. Offers the working features of a 40 foot bus with the compact packaging of a cutaway bus. AccessibleAccessible Affordable Innovative TSX.V: BUS Interiordehumidifier. Tight turning, easy handling and manoeuvrability.

19 19 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. Opening of bid to delivery acceptance is approximately 9 to 12 months. Opening of bid to delivery acceptance is approximately 9 to 12 months. TSX.V: BUS

20 20TSX.V: BUS Business Model High Gross Margins High Low Inventory Costs Low Overhead Costs Grande West - 20%* *Estimated for fiscal year-end Aug 31/14 Grande West - 20%* *Estimated for fiscal year-end Aug 31/14 Buses manufactured to order upon confirmation of a purchase order. Buses manufactured to order upon confirmation of a purchase order. Less than 20 people required to handle $50 million in sales.

21 21 Western Canada Grande West acting as its own distributor. Eastern Canada City View Sales & Service appointed as distributor. Sales Pipeline Pending 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 TSX.V: BUS

22 22 Capitalization Table Shares% of Company (Fully Diluted) Founding Directors & Officers 10,650,00026.6% Other Founders 7,350,00018.4% Private Placement ($1,410,000 at $0.25) 5,640,00014.1% IPO (5M at $0.50 – December 2013) 10,000,00025.1% Private Placement (300K at $0.50 – December 2013) 600,0001.5% Shareholder Loans & Corporate Advisory Fee (800K in Shares for Debt at IPO price at $0.50) 1,600,0004.0% Total Issued & Outstanding Shares 35,840,000 89.7% Broker Warrants (equal to 8% of IPO Shares plus outstanding 333,600 Agents Options) 1,133,6002.8% Stock Options 2,998,4007.5% Fully Diluted39,972,000100.0% TSX.V: BUS

23 23 Initial Public Offering Completed December 2013 Initial target $3 to 4M Raised $5.3M Oversubscribed

24 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. TSX.V: BUS24 5 Year Achievements

25 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. TSX.V: BUS25 2014 Objectives

26 $3.8 million in revenues from BC Transits initial order of 15 buses (delivered). Increasing sales opportunities as Vicinitys 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. TSX.V: BUS26 Summary

27 27 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

28 28 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. TSX.V: BUS

29 Thank-You Contact: William Trainer wtrainer@grandewest.com604-607-4000

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