Hello and welcome to the annual meeting of NFI Group Inc. Please note that today's meeting is being recorded. It is now my pleasure to turn today's meeting over to Stephen King, Group Director, Corporate Development and Investor Relations. Mr. King, the floor is yours.
Thank you. Good afternoon, everyone. I would like to welcome you to this annual meeting of NFI Group, Inc. This is Stephen King speaking. We will start today's meeting by delivering a land acknowledgement, also known as a territorial acknowledgement. I acknowledge that I reside and work from Treaty One territory, the original lands of the Anishinaabe, Cree, Oji-Cree, Dakota, Lakota, Dene peoples, and the birthplace and homeland of the Métis Nation. We respect and give honor to the Indigenous peoples' history on this land and recognize First Nations, Métis, and Inuit peoples' ongoing contribution in our neighborhoods and communities today. We at NFI understand that territorial acknowledgments are important because it is the first sign of respect. It is an acknowledgment of our unique relationship with Indigenous people in Canada and throughout the world, a unique relationship that is committed to truth and reconciliation.
Before we begin, a quick housekeeping item. The accompanying slides that you see on the right-hand side of your screen are for the management presentation, which will take place after the conclusion of the formal portion of this meeting. When it is time for the management presentation, we will be moving the slides via the webcast link, and we will also call out the accompanying slide numbers as we progress. Because of the continuing effects and uncertainties related to the COVID-19 pandemic, we again made the decision to hold this meeting by webcast, as our foremost priority is the health and safety of our stakeholders, shareholders, employees, and other stakeholders. As this meeting is being held virtually, it is necessary to set out a few rules for the orderly conduct of the meeting. Questions can be submitted using the instant messaging service of the virtual meeting interface.
In order to ask a question, please click on the Q&A icon and type your question to management. Following the formal part of the meeting, there will be a management presentation. Questions will generally only be addressed at that time. To the extent there are questions regarding procedural matters or directly related to the motions before the meeting, those may be addressed during the formal portion of the meeting. Questions will be read aloud before being addressed. Only duly appointed proxy holders are entitled to take part in and vote at this meeting. For the purposes of the meeting today, voting on all matters will be conducted by electronic ballot.
Duly appointed proxy holders who have properly logged in with their invite code and who wish to vote will be able to see on their screen all motions being brought forth at this meeting and can vote at them at any time up to the closing of the polls. I would now like to introduce the Honorable Brian V. Tobin, Chair of the Board of Directors of NFI Group, who will provide a welcome to today's meeting and then take us through the formal portion of the meeting. Brian has been Chair of NFI since it went public in 2005 and also served as a director and chairman of several Canadian publicly traded companies. Previously, Brian served as the Premier of Newfoundland and Labrador and also served as a member of Canadian Parliament, holding a number of senior cabinet positions.
Today, in addition to being the chair of NFI, Mr. Tobin is also the vice chair of BMO Financial Group. Now I'll pass it over to Brian.
Thank you, Stephen. On behalf of the entire board, let me welcome everyone to today's annual general meeting. We offer the hope that this is the last time we have to do it by means of this technology that we can get back to an opportunity to meet in person. As NFI announced on this morning's quarterly results call, NFI's President and Chief Executive Officer, Paul Soubry, is taking an immediate temporary medical leave of absence after being diagnosed with a serious heart issue. NFI's Board of Directors has appointed Brian Dewsnup, President of NFI Parts, to be acting President and Chief Executive Officer, NFI Group, during Paul's absence. Paul remains, of course, a member of the board during his leave.
We commend Paul and support his request to take this leave, and we wish him the very best as he focuses on his health at this time. The board has complete confidence in the strong management team Paul has built, which includes standalone leadership of each business unit. Brian Dewsnup was the right choice for the interim role as he has a deep track record within our company and industry, having been President of NFI Parts since 2017, previous president of North American Bus Industries or NABI, following its acquisition by NFI in 2013, and previously served as NABI's Chief Financial Officer. Brian and the entire management team are well-positioned to continue to implement the business strategy and run day-to-day operations while Paul takes his leave.
I look forward to working directly with Brian in his new role as we navigate through the near-term challenges while continuing to capitalize on the tailwinds that will drive NFI to its longer-term financial targets. Now, our thoughts are with Paul as he works with his healthcare team to focus on his health and on his treatment plan. We very much look forward to Paul returning to full health and returning to his place at the head of this organization. It's been an exciting journey as the chair of NFI's board for the last 16 years. This business has evolved from a transit bus manufacturer solely focused on the Canadian and U.S. market to a leading global independent bus and coach solutions provider. We have a diverse board with expertise in governance, finance, technology, M&A, and a solid working relationship with management.
Our board has continuously added new, unique and diverse expertise with insights into different markets, technology, competitive dynamics, ESG, and operations. I'm pleased to advise today that Wendy Kei is being nominated for our board at today's meeting. Wendy is an important addition to our board. The diversity of her professional experience and skill sets in senior finance, corporate governance, M&A, and audit leadership make her the perfect addition to our board. Wendy currently also serves as Chairperson of the Board for Ontario Power Generation, Inc. In 2022, she was honored as a fellow from the Institute of Corporate Directors and named a BMO Celebrating Women on Boards 2022 honoree. In 2020, she was selected one of Canada's top 100 most powerful women. I'm delighted to say on behalf of the board of directors, management, but also shareholders, welcome, Wendy.
Today, I'd also like to recognize John Marinucci, our previous President and Chief Executive Officer of NFI from 2002 through to 2009, and a member of the NFI Board of Directors since 2005. Until his retirement today, John made an outstanding contribution to this organization. His dedication to NFI has been unparalleled in many ways, and I wish as a director and formerly as the CEO when he was in that role, and I wish him all the continued success that I know he'll have in all of his future endeavors. 2021 was an incredibly challenging year for NFI. Supply chain challenges, labor shortages, the continuation of the COVID-19 pandemic, and now in 2022, rapid inflation and global supply chain disruptions.
I'm incredibly proud of our management team, who worked closely with the board throughout 2021 and into 2022 to navigate through these issues with a laser focus on the safety, health and welfare of our team members while managing supply chain disruptions and related issues in order to deliver for our customers. The board remains extremely confident in management and their capability. We're excited to see NFI's execution as it realizes upon the benefits of the significant investments made in battery, electric and fuel cell propulsion, infrastructure and telematics, internal fabrication capability, combined with the cost rationalization and operational excellence initiatives that are being generated throughout the NFI Forward initiative. There's no doubt in our minds, sitting at the board, that NFI will lead the transition to zero-emission bus and coach transportation and will remain the market leader today and into the future.
We'll now proceed with the formal portion of today's meeting. To make the best use of our time, I will move and second the proposals which are called for in the notice of the meeting. The meeting will now come to order. I shall ask Mr. Colin Pewarchuk, Executive Vice President, General Counsel, and Corporate Secretary of the Corporation, to act as Secretary of the meeting, and Matt Gemmell of Computershare Investor Services, Inc, the transfer agent of the corporation's common shares, to act as scrutineer. Notice calling the meeting was mailed to shareholders in April 5th, 2022, and we have received a certificate of the corporation's transfer agent to its mailing. I direct that a copy of the notice with the certificate of mailing be kept with the records of this meeting.
Just prior to the start of the meeting, I received a copy of the preliminary scrutineer's report on the attendance. There are 66 shareholders holding 39,799,528 common shares represented in person or by proxy at this meeting. This represents approximately 51.6% of our outstanding common shares as of the record date. I've been advised by the scrutineers that a quorum of shareholders is present. I now declare that the meeting is regularly called and properly constituted for the transaction of business. The first item of business is the presentation of the consolidated financial statements of NFI Group Inc for the fiscal year ended January 2nd, 2022, and the auditor's report thereon.
A copy of the financial statements, together with management's discussion and analysis of operating results and auditor's report, were included in the corporation's annual report, which has been mailed to shareholders requesting copies and is available on the corporation's website. The corporation's consolidated financial statements and auditor's report are hereby tabled for purposes of this meeting and no further action is required. We'll now proceed with the appointment of auditors and the authorization of the directors to fix their remuneration. I move and second that Deloitte LLP be appointed auditors of the corporation to hold office until the next annual meeting of shareholders, and that the directors be authorized to fix their remuneration. Unless there are any questions, I will move to the next item of business. The next item of business is the election of directors.
10 directors are to be elected, and information regarding the proposed nominees is set out in the information circular prepared in connection with meeting. I have the pleasure of nominating Phyllis Cochran, Larry Edwards, Adam Gray, Krystyna Hoeg, Wendy Kei, Paulo Nunes, Colin Robertson, Katherine Winter, Paul Soubry, and Brian Tobin as directors of the corporation to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed. The corporation's amended and restated advance notice bylaws provides that nominations of directors by shareholders must be received by the corporation at least 30 days in advance of the meeting in order to be valid. As no such nominations were received by the corporation prior to the deadline, the nominations are closed.
In accordance with the corporation's majority voting policy, for a nominee to be elected and remain as a director, he or she must receive no less than a majority of the votes cast in favor of his or her election. Based on the number of votes cast by proxy in advance of the meeting in respect of each nominee, I can report that all of the nominees have received a majority of votes cast for their election. Therefore, I now declare that they have been duly elected directors of the corporation to hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed. The last item of business is the approval on an advisory basis of the corporation's approach to executive compensation.
I move and second to approve on an advisory basis and not to diminish the role and responsibilities of the directors that the shareholders accept the approach to executive compensation disclosed in the management information circular. Unless there are any questions, we will now allow some time for voting. As I mentioned earlier, voting today will be conducted by electronic ballot. Polls are open, and duly appointed proxy holders who have properly logged in with their invite code and wish to vote will be able to see on the screen all motions being brought forth at this meeting. Please register your votes. We'll provide some time to allow the completion of the electronic ballot. Once the electronic ballot closes, the voting page will disappear, and your votes will be automatically submitted. Gonna pause now for a period of time to allow that process to take place.
I'm going to ask Mr. Colin Pewarchuk, the secretary to this meeting, counsel of the corporation, to advise when sufficient time has passed to allow the process to be properly completed.
Brian, I think we're good, and you can proceed at your discretion.
Thank you. I've been advised by the scrutineers that based on the ballots and proxies deposited for the meeting and the preliminary results of the voting, all motions have been voted in favor, and thus I declare all motions carried. The final voting results will be available after the meeting and posted on SEDAR. The formal items of business set out in the notice of the meeting have now been dealt with. As there is no further business to be brought before the meeting, I move and second that the meeting now terminate. I now declare the meeting terminated.
Now that the formal part of the meeting is concluded, I will turn things over to Stephen King, who will give management's presentation. It should be known that Mr. King is, in all things, an eternal optimist. He is, after all, a Toronto Maple Leafs fan. Stephen.
Thanks, Brian. Hopefully, this is our year. Only 15 more wins to go. Please note, for our listeners, I will be walking you through the slides. We will be moving them via our webcast link, but we will call out the slide numbers as we progress. Again, if you have a question, questions can be submitted using the instant messaging service of the virtual meeting interface. In order to ask a question, please click on the Q&A icon on your screen, type in your question, and we will read those aloud at the end of this presentation. I am going to start on slide three, and I would just ask that all listeners and participants read our cautionary statement and review risk factors found in our press releases and other public filings on SEDAR for more details.
I'll also note that NFI's functional currency is US dollars, and all figures and amounts referred to today are in US dollars unless otherwise noted. On slide four, for those of you new or not as familiar to the NFI story, we are a leading independent global provider of sustainable bus and motor coach solutions. We are leaders in our core markets, which includes North American heavy duty transit through our New Flyer business, motor coach through our MCI business, and aftermarket through NFI Parts. Alexander Dennis Limited, or ADL, is the U.K.'s leader in heavy duty transit and aftermarket sales and the world leader in double-deck transit buses. We also operate the innovative ARBOC light and medium-duty bus business and two internal fabrication companies, Carfair, who makes the majority of our fiberglass, and KMG, who prepares various components that go into our vehicles.
Turning to slide five, our purpose is simple. We exist to move people. Our mission is to design, build, and deliver exceptional solutions that are safe, accessible, efficient, and reliable. We operate under our sustainability pledge, originally started in 2006, that still holds today. A better product, a better workplace, and a better world. Slide six shows the breadth of our full offering. Our solutions include vehicles, infrastructure, connected data and telematics, aftermarket parts and service, and financing solutions. We are truly a partner of choice for bus and coach customers offering turnkey solutions. In addition, we also pride ourselves on being thought leaders in the industry and have operated our Vehicle Innovation Center to help support the education of our customers, suppliers, and other stakeholders on new emerging technology in the bus and coach space.
That facility is located in Anniston, Alabama, at our production facility. On slide seven, we've included our stakeholder model that drives our strategic decisions and our company values used in our daily operations. Achieving balance for all our stakeholders is critical to long-term success, and this has been especially true as we've managed through the COVID-19 pandemic and the ongoing global supply chain challenges stemming from that. Moving to slide eight, we are often asked about our total addressable market, or TAM. As you can see, we have leadership positions in our core markets, which represent a TAM of nearly $9 billion, of which we are currently capturing approximately 44% in aggregate. We expect that our share of this market will grow over time as we lead the transition to zero-emission transportation.
In addition, we have an additional TAM opportunity of at least $10 billion from potential new market opportunities in North America and U.K. bus and coach space, combined with geographic markets where we already have a presence and other new potential geographic regions. Our international expansion is made possible through ADL, or Alexander Dennis Limited, which was acquired in 2019. While ADL, like many businesses, has been impacted by the pandemic and the associated supply chain challenges, it continues to expand its reach and has entered numerous new markets since we acquired them. On slide nine, we walk through the current and future growth opportunities ADL has in front of it.
ADL has secured EV awards in New Zealand, grown in Hong Kong, where they've also secured their first EV awards with a major customer, continued to establish its presence in Singapore, and has also seen significant European expansion with contract wins in Ireland and Germany. For example, ADL will deliver almost 200 double-deck buses into Berlin in 2022. Finally, in 2021, ADL entered into a strategic partnership with a local builder in Australia to grow its presence in that attractive market. NFI has been on a growth and diversification journey since 2010, with slide 10 showcasing this transition. In 2010, NFI was solely operating in North America heavy-duty transit market, with 99% of our volumes coming from buses powered by internal combustion engines.
By 2019, we had changed our business with over 13% of our revenue coming from outside of North America, offered through three different vehicle segments and 6% of volumes coming from electric buses. By 2025, we expect that 25% of our revenues will come from international markets and that we will see stronger contributions from heavy-duty transit vehicles driven by expectations that more than 40% of our deliveries will be zero-emission battery electric or hydrogen fuel cell electric buses. Government support, a key driver for transit procurements, is at an all-time high, with $ billions committed for long-term, multi-year fleet investments and the transition to zero-emission battery electric vehicles, where NFI has had a very successful win rate.
Finally, while there have been challenges in the recent term, NFI has historically delivered above-industry performance, outperforming our peers, and we anticipate significant margin growth. Turning to slide 11, like other global manufacturers, NFI's full year 2021 results and operations were impacted by supply chain disruptions that caused an unpredictable and sudden deterioration in the availability of critical parts, components, and chassis. We responded to these issues, assisting suppliers with input constraints and going deep in our supply chain more so than we'd ever done before. We also, during 2021, lowered production rates and idled facilities at times, which assisted in minimizing reprocessing of buses and avoided a buildup of work, excess work in process inventory.
For some context, our orders are for highly customized vehicles engineered to each customer's unique specifications and their selected suppliers. The individual order sizes are typically smaller in nature and have long lead times. In addition, we often have to adhere to local content rules such as Buy America. These factors make our industry very different from the automotive and trucking industries, where customers often buy more standardized products. It also requires significantly more manual input. As you'll see in our facilities, very few robotics. It also limits our ability for quick substitution to alternative suppliers on individual orders. Our supply chain is built for this world and has delivered years of exceptional performance, but they, like many others in manufacturing and other manufacturing segments, are experiencing unprecedented constraints. We're not highlighting these items as excuses, but simply providing some reality of our industry and the current business environment.
On slide 12, we've illustrated the impact the pandemic and the follow-on impact of supply chain challenges had on our financial results in 2020 and 2021. During the first half of 2020, we idled our facilities for approximately two months in response to the initial waves of the pandemic. During that time, we received both Canadian and U.K. government wage subsidies to assist us in retaining our skilled people. In the second half of 2020, we were able to catch up on delayed production as supply was not as significantly impacted during that time. Moving into 2021, our adjusted EBITDA was essentially split between wage subsidies and operations. In the second half of 2021, we received fewer wage subsidies and experienced a rapid decline in operational performance as supply chain disruption accelerated.
It's important to note as we started and head into 2022 that we do not expect to receive any further wage subsidies versus the $54 million received in 2020 and the $56 million received in 2021, making year-over-year comparisons. Year to date, 2022, as you heard on our call this morning, has been challenged again by supply chain disruptions, but we have a strong plan in place to address them and navigate through the hurdles that are in front of us and capitalize on the numerous tailwinds around funding and demand for our vehicles that are at unprecedented highs. With that, I'd like to turn towards our outlook and the bright future ahead of us. I'm now on slide 13. The transportation industry is a leader in the adoption of battery electric vehicles.
This is even more pronounced in public transit, our largest market. Commitments to zero-emission and a focus on shifting away from single car usage to shared transportation is a critical driver in helping cities, states, provinces, and countries achieve their net zero goals. These commitments are supported by record investments in public transit being seen in Canada, the United States, and the U.K., our core markets. These multi-year government funding platforms are key drivers of demand for NFI's vehicles, as transit agencies have multi-year visibility that helps them make larger orders and longer orders with more firm and option, which will help us grow our backlog and improve our results in the future. NFI is playing a leadership role in the transition and evolution to zero-emission transportation, or what we like to call the ZEvolution.
On slide 14, we outlined some of the key milestones and differentiators of our business in the zero-emission space. Combined, we have over 450 years of bus and coach experience and 50 years of electric bus experience. We are the number one provider of zero-emission buses in North America and the U.K. based on both 2020 and 2021 deliveries. We have electric vehicles installed or on order in over 80 cities, with awards in California, Colorado, Michigan, New Jersey, New York, Texas, Scotland, Hong Kong, Ireland, England, truly a global success story. Our electric buses have driven over 65 million zero-emission miles in service, making massive reductions in emissions around the world. Our facilities are all set up to make all the same or different vehicles on the same production line, so we can make different propulsion types on the same production lines.
If it's a diesel, CNG, battery, electric, fuel cell electric, they can all be made in the same production facilities, and we can produce over 8,000 vehicles a year. Our infrastructure solutions business has installed over 280 electric vehicle chargers, and we have numerous projects in place with our customers for 2020 and 2023. Our history of innovation, leadership positions, and strength in battery and fuel cell electric vehicle production has placed us in pole position on our path to our 2025 targets, and we fully expect to remain the market leaders in zero-emission buses and coaches. Turning to slide 15, in January 2021, we provided our investors with our outlook for the market, and we first introduced our 2025 targets.
Since we originally provided those targets, many of our expectations and plans have come to fruition, and we continue to see the path to achieving those targets. While there are near-term headwinds, as we mentioned around supply chain and fallout of the COVID-19 pandemic, the underlying key drivers of our business have improved and strengthened since January 2021. That includes the previously mentioned announcement and rollout of historic investments in public transit from governments in all of our core markets. In addition, we are well on our way to achieving our targets of realizing $67 million in annual run rate adjusted EBITDA savings through our NFI Forward initiative. As we announced on our call this morning, NFI Forward has now achieved $63 million in savings. Our original target was to get to $67 million by 2023, so we're well on our way.
The entire NFI executive board and management team are committed to achieving our 2025 targets, and we fully see that path. We do not need to make major investments in facilities, products, or services as we already have those in place and the demand is there for us to achieve our targets. Slide 16 highlights the trends in EV transition. As you can see on the slide, since 2018, our key markets in North America and the U.K. have seen strong growth in zero-emission buses, which command a higher dollar and a higher margin, and they now make up 17% of our backlog. On slide 17, the average price of heavy duty transit bus in our backlog has grown by 14% since 2019, and the average price of a coach has grown by nearly 20%.
We expect this trend will continue as we deliver more higher priced, higher margin ZEBs, or zero-emission buses, in 2022 and 2023. On slide 18, I'll briefly touch on our capital allocation policies. As we outlined on our call today, debt management is our key focus. Right now, we are in detailed discussions with our banking partners on covenant amendments that will allow us to continue to operate through the near-term headwinds and set us up for the future success. We are working very closely with our banking partners, and we expect that we will be able to have a covenant amendment program in place that suits our financial, current financial position by June 2022. We will continue to invest in capital projects that enhance our competitiveness and provide higher ROIC, or return on invested capital, and possibilities for EPS accretion.
We will not starve our business, and we will make the investments that we think are smart for the future of the business. These can come from investments in products, facilities, or tax structure. While we have, you know, reduced our dividend, we fully expect to be able to grow it as we move beyond 2022 and the supply chain challenges that currently face us and return to more normal free cash flow generation. As you see in our history, we are a business that has a proven track record of strong free cash flow generation and growth. I'm now gonna turn to slide 19 and talk a little bit about our ESG and sustainability. We will be releasing our fourth annual environmental, social, and governance report in May 2022, within a few weeks.
We hope that everyone will get a chance to take a read of that report as we outline in there our program, A Better Product, A Better Workplace, A Better World, and various initiatives that are underway, including the results of our diversity, equity, and inclusion survey and comments on our materiality mapping exercise that's currently underway across NFI Group. We will announce when that report comes out through a press release, and it will be available on our website. On slide 20, I'd like to direct our shareholders and other stakeholders to an exciting fireside chat series that we completed earlier this spring with several key stakeholders within the zero-emission bus space. On there, we have a fireside chat with the head of the American Public Transportation Association, Paul Skoutelas.
We have a conversation with our customer who has purchased, zero-emission buses from us in New Zealand, with Auckland Transport, with Darek Koper. We have a fireside chat with the head of the Canadian Urban Transit Association, Marco D'Angelo. He's the President and Chief Executive Officer of CUTA. We also have a fireside chat with the head of Foothill Transit, Doran Barnes, again, talking about our zero-emission and his experience with NFI's vehicles. Finally, on page 21 or slide 21, we recap the investment thesis and the investment rationale for NFI Group. As you can see here, we're market leaders with unprecedented demand. You've heard it several times from me throughout today's call. The U.S. government currently has a $100 billion+ investment in U.S. public transit through its Infrastructure Investment and Jobs Act.
The Canadian government has a $30 billion+ program, the first of its kind in Canadian history that has multi-year dedicated federal funding. The U.K. government has a GBP 5 billion funding investment that wants to see them purchase over 4,000 zero-emission electric buses. There is the planned replacement in our core markets of over 35,000 buses from combustible ICE engines to zero emission. We have key competitive advantages, full suites of mobility solutions, decades of investment in innovation and product development, unparalleled aftermarket support, and we have the strongest aftermarket network within both North America and the United Kingdom, and our aftermarket business has been extremely important as we've gone through the supply chain challenges. That business has grown and provided strong EBITDA performance and cash flow generation. Our business, while currently challenged, has a history of a compelling financial profile.
We've outperformed our peers in the market from both returns and financial performance, and we have a history of double-digit returns on invested capital with expectations that we will get back to over 12% by 2025. Our liquidity is strong as we navigate through these near-term challenges, and we are confident that we will get the covenant amendments we need with our banking partners. With that, I will now turn it over for questions and then our responses. I'll take a moment to see if any questions come through. Again, you can click on the virtual messaging interface on the Q&A icon if you have a question. Seeing as how we have no questions, we will move to terminate today's meeting. We thank everyone for attending.
If you have any questions at any time, please do not hesitate to reach out to myself, Stephen King, or Melanie McCreath, and we will respond to you as quickly as possible. I would also encourage you to visit our website, where all of our investor materials are available, including our contact information. Thank you so much for attending. Have a great afternoon.
This concludes the meeting. You may now disconnect.