AGM 2020

May 7, 2020

Slides

Good morning, everyone. This is Stephen King speaking, NFI Group's Group Director of Corporate Development and Investor Relations. Thank you for joining us today at our twenty twenty Annual and Special Meeting of Shareholders. I'm now going to pass it over to our Chairman, the Honorable Brian Tobin for opening remarks. Thank you very much, Steve. Good afternoon and welcome to shareholders, to guests, to employees, stakeholders, to our NFI's Annual and Special Meeting of Shareholders. It's my pleasure to welcome you to our first ever virtual AGM. We've chosen to utilize this platform, of course, in order to ensure the health and safety of all participants in the face of the COVID nineteen pandemic. I hope that you and your families are keeping safe and well during these challenging times. Joining me today are members of NFI's management team as well as the members of the Board of Directors. We'll begin today's meeting with the formal business, followed by a presentation from Paul Subi, President and CEO of NFI. Then we'll respond to any questions. In this presentation, Paul will discuss the numerous measures the company's taken to protect the health and well-being of its employees, our customers as well, and suppliers in the face of COVID-nineteen. The agenda for today's meeting, plus links to additional documents, including the information circular and annual report, can be found on the left hand side of the home page. Now while the meeting is virtual, it will be just like a typical AGM, minus the coffee and donuts, of course. If you previously registered to vote your shares, you'll have the opportunity to do so, and we will also be taking your questions. Paul will explain the process and housekeeping in just a few moments. Looking back in 02/2019, it was a period of major milestones for NFI Group as the company expanded from being the leading North American bus and coach manufacturer into an international mobility solutions provider. Through the company's acquisition of UK based Alexander Dennis Limited, NFI now has operations in 10 countries and over a 105,000 vehicles in service. Millions of people literally around the world rely on NFI products every day. And I'm pretty sure that nearly everyone attending this meeting has ridden on an NFI vehicle at some point within the last year. I've had the pleasure of serving in NFI's board since 02/2005, and it's been an incredible journey to see the company flourish and become a great Canadian, now international, success story. And while there have been some recent challenges, I know that NFI will come out of the COVID nineteen pandemic stronger than before and extremely well positioned for the economic recovery that will follow. Paul will discuss management's outlook for both veneer and long term as part of his presentation. Let me now turn this meeting over to Paul for the formal start of business. Paul? Thank you, Mr. Chair. Good afternoon, everyone. I'd like to welcome you to this annual and special meeting of NFI Group Inc. My name is Paul Subri. I'm the President and Chief Executive Officer and the Director of NFI Group Inc. And I will chair the meeting. These are certainly unprecedented times and the decision to hold this meeting by webcast was made following orders given by public health and governmental authorities to restrict public gatherings and comply with social distancing. Our first and foremost priority is the health and safety of our shareholders, employees, and other stakeholders. At this meeting, as this meeting is being held virtually, it is necessary to set out the rules for the orderly conduct of the meeting. Questions in respect of a motion can be submitted by duly appointed proxy holders using the instant messaging service of the virtual interface. When asking a question, please indicate your name, which entity you represent, if any, and confirm that you are duly appointed proxy holder. Please keep your questions brief. I also encourage you to submit your questions as early as possible so that we may address them at the right time during the meeting. 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 meeting. Questions will be read out 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 username and wish to vote will be able to see on the screen that all motions being brought forth at this meeting can vote on them at any time up to the closing of the polls. Typically, and this year is no exception, the majority of shareholders submit their proxies in advance of the meeting on behalf of the Board and I wish to express my thanks to them. We will 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 this notice of the meeting. The meeting will now come to order. I shall ask Mr. Colin Pawarczuk, Executive Vice President, General Counsel and Corporate Secretary of the Corporation to act as the Secretary of the meeting and Amy Cam and Josette Coffey Berg of Computershare Computershare Investor Services Inc, the transfer agent for the corporation's common shares to act as the scrutineers. Notice calling the meeting was mailed to shareholders on 04/03/2020, 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 scrutineers report on the attendance. There are 78 shareholders holding 29,319,337 common shares representing in person or by proxy at this meeting. This represents 46.91% of our outstanding common shares as at 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 at NFI Group Inc. For the fiscal year ended December 2939 and the auditor's report thereon. A copy of the financial statements together with management's discussion and analysis of operating results in the auditor's report were included in the corporation's annual report, which has been mailed to shareholders requesting copies. The corporation's consolidated financial statements and auditor's report are hereby tabled for the purpose of this meeting and no further action is required. We will 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 the directors. Nine directors are to be elected and information regarding the proposed nominees is set out in the information circular, which accompanies the notice of meeting sent to shareholders. I have the pleasure of nominating the honorable Brian Tobin, Phyllis Cochrane, Larry Edwards, Adam Gray, Christina Hogue, John Marinucci, Paolo Nunez, Catherine Winter, and Paul Subri. 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 advanced notice bylaws provides that nominations of directors by shareholders must be received by the corporation at least thirty 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 numbers of votes cast by proxy in advance of the meeting in respect to each nominee, I can report that all of the nominees have received the majority of votes cast four their election and 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 successes are duly elected or appointed. The next item of business is to consider and if deemed appropriate, to pass an ordinary resolution in the form set out in Schedule A to the management information circular to continue, amend and restate the second amended and restated shareholder rights plan agreement dated May 1137 between the corporation and Computershare Investor Services Inc. As its rights agent. The rights plan is designed to provide the Board of Directors with additional time to assess an unsolicited takeover bid for the corporation and where appropriate to give the Board additional time to pursue alternatives for maximizing shareholder value. The rights plan is also designed to encourage fair treatment of all shareholders and to encourage a potential acquirer to proceed by way of a permitted bid, which requires the takeover bid to satisfy specified minimum standards designed to promote fairness. The rights plan was not adopted in response to any specific proposal to acquire control of the corporation nor is the board currently aware of any pending or threatening takeover bid for the corporation. To be effective, the ordinary resolution must be approved by a majority of the votes cast by shareholders represented today and entitled to vote at the meeting, excluding shareholders who are not independent shareholders for the purposes of the rights plan. If the ordinary resolution is approved, the Corporation and Computershare Investor Services, Inc. As rights agents will enter into the third amended and restated shareholder rights plan agreement to take effect today. I move and second that the resolution with respect to the continuation, amendment and restatement of the second amended and restated shareholder rights plan agreement of NFI Group Inc. In the form set out in Schedule A to the management information circular be passed as an ordinary resolution of the corporation. Unless there are any questions, I will move to the next item of business. The next item of business to consider and if deemed appropriate to pass an ordinary resolution in the form set out in Schedule B to the management information circular regarding the corporation's 2020 share option plan. To be effective, the resolution must be approved by a majority of the votes cast by the shareholders of the corporation represented today and entitled to vote at the meeting. The 2020 option plan has substantially the same material terms as the 2013 option plan of the corporation, which is currently in place. The purposes of the plan are one, to support the achievement of the corporation's performance objectives two, ensure the interests of key persons are aligned with success of the corporation and three, provide compensation opportunities to attract, retain and motivate senior management critical to the long term success of the corporation and its subsidiaries. An aggregate of 3,200,000 common shares of the corporation are issuable under the 2020 option plan. A general description of the plan is set forth in the management information circular. I move and second that the resolution with respect to the adoption of the NFI Group Inc. 2020 share option plan in the form set out in Schedule B to the management information circular to be passed as an ordinary resolution of the corporation. Unless there are any questions, I will move to the next item of business. 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 the electronic ballot, polls, and open and duly appointed proxy holders who have properly logged in with their username 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 will provide approximately one more minute to complete the electronic ballots. Once the electronic balloting closes, the voting page will disappear and your votes will be automatically submitted. Thank you. I have 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 as set out in the advance notice of meeting have now been dealt with. As there are no further business to be brought before the meeting, I move and second that the meeting now terminate, and I now declare the meeting terminated. Now that the formal part of the meeting is concluded, I will proceed to give a management presentation. So I have a a deck that I'll quickly review about our company. Earlier this morning, we presented at our first quarter investor call and analyst call a first quarter update results update and this deck is really a reminder and an explanation of our overall business. Obviously, on Slide two, there is a statement on forward looking statements, financial terms, definitions and conditions that you could read at your perusal. On Slide three, as Brian mentioned in his introduction, our business has gone from a North American transit bus business now to a global company, 9,000 team members in 50 facilities across 10 countries. And we have grown to become a leading independent bus and motor coach manufacturer that has now pivoted to working with our customers to provide a comprehensive suite of transportation and mobility solutions. And as you can see from our vision and our mission, we are looking not only at today's needs, but working towards a much different and more progressive future of innovative and sustainable solutions. On Slide four is the highlights of our four major business lines. We have two reporting segments, one in which is manufacturing business and one which is an aftermarket spare parts business. On the top left, our main brand, the history of the NFI company is New Flyer, which is North American's leader in heavy duty transit buses. To the top right, we also have a leader in motor coaches that is based here and headquartered in Winnipeg, but has locations and capability across North America, motor coach industries. On the bottom right, we acquired a company a couple of years ago in Indiana that is the leader in low floor cutaway buses and now has moved into shuttle buses. And finally, on the bottom left, we have been very lucky and fortunate to add Colin Robertson and the Alexander Dennis team to our company, who is not only The UK market leader in bus and coach, but the world leader in double deck buses. On Slide five, this is a really important slide to our company culture, our company approach to business. Over ten years ago, we adopted this circle approach, if you will, or pie approach to balancing our decisions with our customers, their customers, our shareholders and our employees, the key stakeholders of our business. It's not lost on us that we are very reliant on a very sophisticated supply chain community across the world and predominantly in The United States and that at the end of the day, we are in tremendous focus and support on our community where we work, live, do business and support our customers and the environment. And so just this past year, as Alexander Dennis joined our team, we responded by redrafting and resetting out the mission, vision and values of our company. And as you can see in those five boxes, we took a very strong commitment pledging to be customer focused, that we must earn the trust of those we serve, meaning our customers, but also those that serve, which means our employees. We value honesty, hard work and teamwork. We foster smart leadership in the way we run our business and the innovative products that we develop and supply. And finally, we believe in sustainability and the importance that has for the future of our world. On Slide six is a picture and a little bit of a detail of our Board of Directors. As you heard earlier on this call, the Honorable Brian Tobin, who has been the Board Chair for a number of years, Phyllis Cochrane is the Chair of the Audit Committee, Larry Edwards is the Chair of the HR Corporate Governance Committee, recently joined us last year with Catherine Winter, who is on the HR Committee, John Marinucci, former the CEO of our business Adam Gray, who sits on the Audit Committee Christina Hoag, who is on the HR Corporate Governance Committee and Paulo Nunes, who also is a representative of Marco Polo, who is on HR Corporate Governance Committee. A very well experienced and balanced and diversified board. On slide seven, we've tried to show the evolution of our business since it went public in 02/2005. Originally, New Flyer Industries went public as what was called an income deposit security in Canada or a stapled security. In 2010, we did our first acquisition. It was an opportunity to learn about how to do due diligence, how to buy an integrated business, which was a part fabricator in Elkhart, Indiana. In 2011, we made the decision that to be successful for the long term, we needed to take a broader view of that stakeholder chart that I showed you. And so we converted from an income deposit theory to a common share. In 2013, we were the benefactors and investment by a world leading body manufacturer, Marco Polo, headquartered in Brazil. And immediately, we were able to acquire the parts business from Daimler's Orion based in Toronto, New York and Navi from Cerberus, was based in Anniston, Alabama. In 2015, it was our first major foray into diversification with the addition of MCI here headquartered in Winnipeg. In 2017, we really tried to focus more on a strategy of controlling some of our critical supply chain where we acquired two different FRP fiberglass part manufacturers in Carlson and Syntex Waukee, Waukee Composites followed by late in the year an acquisition of ARBOC. In 2018, we launched a fabrication facility in response to cost, time and quality concerns in terms of our internal supply chain, but also to deliver and meet the enhanced Buy America requirements in The United States. And finally, as I mentioned, just this past year, were able to add Alexander Dennis, which gives a growth engine and a global diversification model for our business. Sorry, Paul, to cut in. Just to make sure for listeners, if you are following along or you want to follow-up with the slides, just make sure you click Broadcast on the webcast. Okay. Thank you. On Slide eight, a very simple chart, but important as a shareholder to know that not only are we trying to build buses that meet today's needs, but we are very aggressive and very forward in our thinking with respect to bus and coach technology. On the top left, we've taken a very aggressive approach to zero emission buses and also launched our own business to provide infrastructure solutions and support our customers as they adopt electric technology. On the top right, we have been very aggressive in the learning and understanding deployment of how advanced driver assistance systems will be deployed in the future of bus and coach. On the bottom left, one of the key areas that has progressed quite aggressively in the last couple of years is the use of telematics in connected vehicles. Not only our products, but how they talk to the operators, the maintainers, and other vehicles in service. And finally, a key part of our strategy on the bottom right is that we don't believe zero emission buses are a revolution. It's not going to happen tomorrow. We think it's a matter of when, not if. Technology works, the economics work, but it's going to be an evolution, which is why working with our customers with a common platform but propulsion options and allowing that operator to migrate at their own pace is critical to success for the long term. On Slide nine, is a bit of a summary on kind of some of the two key major initiatives that we've done in the last couple of years. On the left, as we started to move into electric vehicles, the single biggest issue was the lack of understanding of what it meant for all the different stakeholders at a transit agency. Everything from the drivers, the maintainers, the purchasing people, the purchasers, the management team and so forth. And so we stood up a vehicle innovation center and made a very significant investment in our Alabama facility to provide a place where educators, operators, finance companies, technicians and so forth can collaborate on the use and migration to electric vehicles. And on the right hand side, something I mentioned previously before, part of the challenge for adoption of electric vehicles is to understand and ensure that you've optimized the charging strategy, whether it's en route, in depot, and whether it's overnight or on demand and so forth. And so our strategy to work with our customers to provide a solution and not just the bus has turned out to be very successful and fundamental. On Slide 10, following the acquisition of Alexander Dennis and all the other businesses we talked about, we've now woken up as a business that has some level of diversification that we never had before. And it truly is now a global business. On the far left, you will see that our customers are 70% public and 30% private. In the middle, you'll now start to see on a pro form a basis where UK and Europe and Asia Pacific starts to play a meaningful role in our business. And on the far right, you see that we've added a little bit more for diversification between transit buses, motor coaches, medium duty and low floor cutaways and obviously the spare parts supply to support our customers. On Slide 11, we felt it appropriate to explain and show that we have very aggressively thought about capital allocation, not only to improve our competitiveness, our products, to ensure our facilities are safe and capable of providing what our employees need to build world class products, but also returning to shareholders capital to shareholders in a variety of different ways. And since 2015, we have spent $195,000,000 on capital expenditures in our facilities. More than 50,000,000 or $60,000,000 of that has actually been announced in Alabama alone. Acquisitions have added up to almost 900,000,000 or slightly over 900,000,000 Dividends in that period have gone to have been totaling US261 million dollars and we did have one period where we did some share buybacks a number of years ago. Now as Brian mentioned in the introduction, coronavirus or COVID-nineteen has had a profound impact on the world, on our customers and no question on our company. So this page has two parts to it. The top is a bit of commentary on what coronavirus has done to our business segments. First, the transit bus in North America. Now as you know, all transit buses, the vast majority, 99% of them are publicly funded. And so far, we've had schedule adjustments, we've had a little bit of deferrals, but for the most part, minimal cancellations associated with public transit in Canada and The United States. There has been some to a very small level. The good news that we see is that we continue to talk to our customers about their desires to rejuvenate their fleets in the coming years. And we created a metric some ten years ago called the bid universe, which measures both active bids in the marketplace, but also the demand over the next five years based on customers' fleet replacement plans. And the encouraging part there, notwithstanding funding dynamics going forward, is that transit agencies in North America are very interested in continuing to rejuvenate their fleets to zero emission. Second, North American motor coach has had significant impact from private customer deferrals. More than 90% of all motor coaches in North America are parked today and there have been not only deferrals of orders, but cancellations. The good news about the North American market from a motor coach is the public. 40% to 50% of our revenue at MCI in any one year is to public operators providing motor coaches for transit service. That portion of our business continues to be relatively stable. Internationally, very different than North America where transit agencies are primarily private operators that bid on public routes and perform loan services and therefore rely heavily on the fare box. In most cases, the international business has not seen cancellations. To a large extent, it's been deferrals or the recasting of their five year fleet replacement plans, primarily in The United Kingdom. In Hong Kong, where our business sells buses to Hong Kong and Singapore and New Zealand, that business is back up and operating. And finally, our parts business. As you can imagine, when coronavirus hit and we started to see stay in place or shelter in place orders, we still saw transit agencies albeit reduced service moving people and the essential workers and providing the essential service. And so consequently, all of our businesses rallied together to provide support to NFI parts and ADL parts to provide service, technical support and parts to those customers. And that business has continued. So in response, the bottom part of the chart, here's what we did. Mid April, we made the decision that we would look to idling our facilities. And I use the word idling carefully because we did not want to bleed our production lines of spare parts so that a return to work would be even more complex. So we chose to use people on volunteer basis to come back and help us burn off any excess what we have, but essentially the vast majority of our facilities were idled from a health and safety perspective. We retained key people where we needed to provide that critical support. The second thing we did is worked with our supply chain. Now any of you that know much about our business, we don't build the same bus or coach. Every single customer, for the most part, has very, very specific bills of materials and specifications, which means we have an incredibly complex supply chain. So our team centrally as well as within the business units worked cooperatively with our suppliers to figure out how to slow down and change orders so that we didn't have, challenges when we start back up. Number three was liquidity. One of the single biggest issues we heard from suppliers sorry, from investors and analysts was the concern for NFI's liquidity. So we focused on cash burn and debt capacity. We first furloughed in excess of 8,000 people across our business, unfortunately a very difficult decision. We made progressive efforts on receivable collection, which went fairly well. We worked with our suppliers on the payables. We delayed CapEx. We reduced our board fees and the timing and payment of them. And we reduced our executive and senior leadership somewhere ranging between 20% reduction and 50% reduction. We also were very successful at implementing two new credit agreements, one $250,000,000 sidecar facility in North America and a $50,000,000 sidecar facility in The UK to assist with international operations, which pushed our current liquidity north of $550,000,000 Number four, cost reduction. Obviously, the slowdown in our customers' business has an impact on our business. And so obviously, what we went after where we could was to look at taking out cost, changing the way we paid some of our suppliers, managed all of those levers that we could from a variable perspective. And so we have seen significant cash burn reduction and cost reduction. And unfortunately, we had to make the difficult choice to permanently terminate in excess of 300 people primarily in our Winnipeg operations as a result of the private coach slowdown. And finally, we are now in the phase of restart. We have been working very aggressively with our suppliers to ensure that they're able to restart as we restart. We've made a decision to stagger the ramp up of our facilities so that we can learn lesson learned across the business and on a business by business, site by site basis. We've also agreed to start off at our production rate lower than we were operating before, primarily to ensure that all of our safety protocols and all of our social distancing dynamics, cleansing and so on and so forth can be done efficiently in the facilities. So I turn now to Slide 13 and to just highlight for your attention a couple of key things we've been doing. First, last week, we published our return to work protocol. And it talks very detailed about all the strategies around transmission, prevention, orientation, social distancing, all the guides in the facilities, all the cleaning, sanitizing, PPE. We have dispersed our cafeteria throughout a number of places rather than one big social area. We've addressed break rooms and locker rooms. We've got daily stand up meetings set up to communicate to all employees, health checks, masks, temperature screening, visitor and travel restrictions, and we continue in many cases with work from home arrangements. I'm very pleased at the pace at which our people have put this together and quite honestly, the response from our employees and the recognition that it's up to all of us to make this happen. And finally on the right, one of the things for us to be successful in the long term is to get people back in buses and coaches. And so our parts team working with a number of their customers, but also with the OEM parts of their business, have gone back and done diagnostics of buses and coaches and tried to find ways to really go after barriers, whether it be drivers or passenger barriers, onboard air filtration systems that are enhanced from the original OEM, additional ventilation options, in some cases UV lighting that we can put in the air conditioning system to kill bacteria in the air and a variety of different cleansing and sanitizing protocols. And so that's really started to take a lot of excitement and dialogue with our customers about how do we support them to get customers back in their vehicles. And finally, we continue active engagement with a variety of different government organizations and associations to ensure that we're working cooperatively as an industry, but also with our government to ensure funding can help. And as you know, The United States, the CARES Act and the $25,000,000,000 dedicated to transit had a massive impact on the health of the average transit agency. So I'm on slide 14, and I'll wrap it up. An outlook. No question, 2020 will be challenged for us. But quite honestly, we're pretty well positioned for longer term recovery. As I mentioned, 60% of our business 70% of our business, sorry, is in supporting public transit agencies around the world or public operators, public essential services. We've done a really good job, think, in a very short period of time of idling our facilities and then implementing cash management, cost reduction and credit relief initiatives. We are now on the road to recovery. We have started operations and by the first week in June, all of our facilities will be back up and operating. The public market outlook remains healthy and as I said, we have seen some minor deferrals. Our bid universe, which is the total of all customers' expectations of buying, is now at record levels, which bodes well and a very high percentage of that 30 is now zero emission. Government subsidy and stimulus programs, we think, will bode well as our customers try to find a way back to normalcy following from the COVID-nineteen pandemic. Unfortunately, the North American private motor coach market and The UK private operators are the ones that we expect to have continuous and significant pressure. And a lot of them in North America are small or medium sized family owned businesses. And that's one area that we are very close in watching and monitoring. Our financial results will no question be down significantly in the second quarter from 2020 when you compare it to last year due to the impact. And we will, no question, have some impact in Q3 and Q4 of this year. The good news, we have a strong backlog. We have record levels of public bid universe. We have government support very aggressively dialogue and action so far from Canada, U. S, U. K. On fleet renewal. And our outlook longer term remains positive for our markets. And so our strategic plan is now to take those pieces, all of the different businesses and pivot slightly from individual operating codes, if you will, or holdco to an operating code where we leverage it across the business. And in March, our Board approved our strategic plan to move in that direction to improve the competitiveness of NFI Group for the long term. With it, I thank you for your attention. I thank you for attending the meeting. We will now move into the question and answer session of it. So Stephen King, maybe you can share this section. Sure. Thanks, Paul and thanks for that presentation. We will now open the question period. If you have a question on your screen, you'll notice two little speech bubbles. You can click there to pose your question. We've had a few come in already. We'll just leave the line closed for about a minute and let people give people a chance to type their questions and submit them. And then we will start to respond to questions. Okay. Thank you for the question. So we'll start, Paul. The first question comes from Jeff Lachey of Communications Workers of America. And his question is employees in Minnesota and elsewhere have consistently complained of a lack of appropriate PPE masks in particular. What is NFI Group doing to ensure enough masks are delivered to every worker? Thanks for your question, Jeff. Obviously, this is fundamental to our return to work type strategy. Originally, when we first started to experience COVID in mid March and started to see the ramifications of Asia, from Europe and as it made its way into North America. We then rallied a task force across our entire business and PPE became a group responsibility where we did inventories of what was on-site. We sourced both locally and domestically as well as internationally. We have a supply chain person dedicated to the PPE, everything from the masks to gloves to sanitation materials to Tyvek suits and those kind of things, filters. And at this point in time, even as late as yesterday, we get a daily phone call and report on our PPE situation. We are very comfortable with our new face covering policy that we have provided and will provide no problem to provide the appropriate materials and masks to the workers in the plant. We have provided the same rules and guidelines that happen in the shop, that happen in the field service, that also happen in our facilities. And so the combination of social distancing, cleansing, masks and all the other issues I talked about in terms of cafeteria, locker rooms and those things are critical to our return to work plan. That plan has now been deployed. Every single person as they come back to work will receive an orientation session on that return to work protocol and the utilization of masks and those kind of things. In some cases, depending on the job function, we have provided the option for employees to bring their own or utilize their own masks. So I am very comfortable that it's a great question. It's a very important initiative to that safety protocol and I am very pleased with where we are at on that. Next one, Steven. Okay. Thanks, Paul. So a couple of questions here, one from Patrick O'Meara at AFL CIO and Patricia Todd, Jobs to Move America around hazard pay for employees who work during the pandemic and sick leave for workers who are self quarantined during the pandemic. Okay. Well, good. Patrick and Patricia, thanks for your questions. Again, obviously critical to our strategy around safety, employee engagement and what we do for the protocol, leadership committing to make the materials available and so forth. The hazard pay issue is something that we've had a lot of dialogue and discussion looking at other marketplaces, trying to learn lessons learned from various different work environments. We have a number of collective bargaining agreements across our business and we have done our best to ensure that we have provided a universal approach across the company to be in compliance with those collective bargaining agreements. We have not gone as far as providing additional hazard pay. We worked people worked, as you may know, through the periods where we did have essential services during our lockdowns or idols, and those people, for the most part, were on a volunteer basis. With respect to sick leave, again, the same thing I think applies. We do have a variety of different policies and approaches and agreements inside our collective bargaining agreements. We are not anywhere near against and clearly, we support people who have unique requirements for their own families and self quarantine. Our return to work protocol and the protocols around positive cases, if they happen, have been tested and very pleased that we can be very efficient at being able to identify, cleanse any areas, deal with quarantine or self quarantine issues associated with it. The response from the people that have read and now are working the safe return to work protocol has been fantastic. I can honestly say I have not heard of or seen a complaint with respect to this. And the compliance levels where we do have people back has been spectacular. So I'm really grateful to the workforce, the leadership and the support organizations for putting this in place. Stephen, back to you. Any more questions? Just remind participants, if do have a question, the those two speech bubbles on your screen. Paul, looks like there were no fewer questions. All right. We'll just put that. Thank you, Stephen, for chairing that. I'll hand it back to our chair, the honorable Ron Tobin, to close off the meeting. Thank you very much, everyone, for joining us today, and thank you all for your participation in our formal business. And also thank you for the questions that Paul has just answered. On behalf of myself, Paul and management, and of course, all of my Board colleagues, we want to thank our shareholders for their continued support of NFI. We hope you all share in our enthusiasm for the future of this great business as it continues to grow and expand its product and service offering with an increased focus on zero emission buses and mobility solutions. I want you to know on behalf of the board that your voice and your input is important to us, and we hope that you found this meeting to be informative. If you should have any follow-up questions or further comments, please do not hesitate to reach out to Stephen King, who's been with us today, the group director investor investor relations. Stephen's contact information can be found on the company's website. I will now conclude today's meeting and, wish that you all continue to stay safe. Good day.