#1BLUE BIRD SCHOOL BUS ER WOR BLUE BIRD "A Leader in zero- and Ⓡ low-emission transportation" BLUE BIRD CORPORATION (NASDAQ: BLBD) Investor Presentation December 2023#2Important Disclaimers Forward Looking Statements This presentation includes forward-looking statements within the meaning of the "safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance, business strategies or expectations for our business. Specifically, forward-looking statements include statements regarding guidance, seasonality, product mix and gross profits and may include statements relating to: Inherent limitations of internal controls impacting financial statements Growth opportunities • Future profitability Ability to expand market share Customer demand for certain products • Economic conditions (including tariffs) that could affect fuel costs, commodity costs, industry size and financial conditions of our dealers and suppliers Labor or other constraints on the Company's ability to maintain a competitive cost structure • • Volatility in the tax base and other funding sources that support the purchase of buses by our end customers Lower or higher than anticipated market acceptance for our products Other statements preceded by, followed by or that include the words "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target" or similar expressions Future impacts from the novel coronavirus pandemic known as "COVID-19," and any other pandemics, public health crises, or epidemics, on capital markets, manufacturing and supply chain abilities, consumer and customer demand, school system operations, workplace conditions, and any other unexpected impacts These forward-looking statements are based on information available as of the date of this presentation, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. The factors described above, as well as risk factors described in reports filed with the SEC by Blue Bird Corporation (available at www.sec.gov), could cause our actual results to differ materially from estimates or expectations reflected in such forward-looking statements. Forward-looking statements in this document also may include, but are not limited to, statements regarding the pricing of the share repurchase, the potential tender offer by Blue Bird for shares of its common stock, and the benefits and timing of any potential tender offer. Many risks, contingencies and uncertainties could cause actual results to differ materially from Blue Bird's forward-looking statements. Among these factors are the risk that Blue Bird may decide not to commence the tender offer, and that if Blue Bird does commence a tender offer, that the offer may not be completed. BLUE BIRD 2#3Important Disclaimers Non-GAAP Financial Measures This presentation may include the following non-GAAP financial measures: "Adjusted EBITDA," "Adjusted EBITDA Margin," "Adjusted Net Income," "Adjusted Diluted Earnings per Share," "Free Cash Flow" and "Adjusted Free Cash Flow." Adjusted EBITDA is defined as net income or loss prior to discontinued operations income or loss, interest income, interest expense including the component of lease expense (which is presented as a single operating expense in selling, general and administrative expenses in our GAAP financial statements) that represents interest expense on lease liabilities, income taxes, depreciation and amortization including the component of lease expense (which is presented as a single operating expense in selling, general and administrative expenses in our GAAP financial statements) that represents amortization charges on right-to-use lease assets, and disposals, as adjusted to add back certain charges that we may record each year, such as stock-compensation expense, as well as non-recurring charges such as (i) significant product design changes; (ii) transaction related costs; (iii) discrete expenses related to major cost cutting initiatives; or (iv) costs directly attributed to the COVID-19 pandemic (3). We believe these expenses are not considered an indicator of ongoing company performance. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted Net Income is net income or loss as adjusted to add back certain costs as mentioned above. Adjusted Diluted Earnings per Share represents Adjusted Net Income or loss available to common stockholders divided by diluted weighted average common shares outstanding (as if we had GAAP net income during the respective period). Adjusted Net Income and Adjusted Diluted Earnings per Share are calculated net of taxes. Free cash flow represents net cash provided by/used in operating activities minus cash paid for fixed assets, Adjusted Free Cash Flow represents Free Cash Flow minus cash paid for (i) significant product design changes; (ii) transaction related costs; or (iii) discrete expenses related to major cost cutting initiatives. There are limitations to using non-GAAP measures. Although Blue Bird believes that such measures may enhance an evaluation of Blue Bird's operating performance and cash flows, (i) other companies in Blue Bird's industry may define such measures differently than Blue Bird does and, as a result, they may not be comparable to similarly titled measures used by other companies in Blue Bird's industry and (ii) such measures may exclude certain financial information that some may consider important in evaluating Blue Bird's performance and cash flows. BLUE BIRD 3#4Agenda Investment Highlights School Bus Industry Overview Company & Product Highlights FY2024 Objectives Growth Runway BLUE BIRD SCHOOL BUS 4#5Investment Highlights Countercyclical National Commitment Strong industry growth ahead with a backdrop of healthy funding and an aging school bus fleet Beneficiary of $5B US Government's commitment to the electrification of school buses The Leader Expanding our TAM Leading market position in alternative power and electric school buses Product portfolio further diversified through introduction of EV commercial chassis offering Reducing Costs Reducing structural costs through Lean Transformation Profitable Growth Pricing aligned to market economics and volatility BLUE BIRD EBITDA margins of ~10% in 2024 and 12%+ the mid-term, in a normalized operating environment 5#6BLUE BIRD School Bus Industry Overview 6#7Industry Highlights School buses are America's largest mass transit system 500K+ school buses in operation in the U.S. and Canada transporting 26 MILLION KIDS to school on a daily basis OEMS Lion School Bus Customers ~3,400 Contractors Thomas Blue Bird -10,000 School Districts IC High barriers to entry Highly specialized product -- Complex state and customer requirements -- Dealer and service network -- Customer relationship driven business Demand Drivers Population of school age children increasing -- Increasing average age of existing fleet - Federal funding for clean school buses Relatively Clear Funding Sources Property taxes are primary source of funding; volume tracks housing prices BLUE BIRD 7#8BLUE BIRD Type C & D School Bus Industry 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Number of school age children 1995 Historical Registrations 1996 1997 1998 1999 2000 2001 2002 Industry avg size is 30,500 new units annually based on Polk registrations ■ Total fleet of school buses is ~515,000 units and average age is about 10 years. Industry size is driven by: 2003 2004 2005 2006 2007 2008 -Long Term Avg. ('85-'19) 2009 Mean: 30,600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Age of existing fleet - most states set 15 years as a replacement target Source: R.L. Polk New Registrations, based on Type C/D school buses & non-school buses in US/CAN registered thru Dec. 2023 Average ridership per bus Funding – primarily from property tax FY2023 industry expected to be ~27k units as industry production capacity is still constrained by supplier shortages; core funding and demand is healthy at pre-pandemic order levels 8 28,982#9Fleet Age Profile Supports Industry Levels ~515K School Buses on the Road as of the end of CY2022 40,000 35,000 43% of the fleet is 10 years and older 30,000 25,000 20,000 15,000 10,000 5,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 ~221K buses in service for more than 10 years supports high annual replacement volume BLUE BIRD Source: R.L. Polk VIO, based on Type C/D school buses and non-school buses in US/CAN thru Dec. 2022 9#10BLUE BIRD Company & Product Highlights 10#11Introduction to Blue Bird ■ ■ Headquartered in Macon, Georgia Leader in alternative power; #1 in electric & propane school buses 60%+ of Blue Bird sales are non-diesel; <10-20% for competitors Full range of chassis that can be offered to third parties, led by EV Manufacturing footprint strategically positioned to serve the entire U.S. market Dedicated dealer network with more than 50 dealers and more than 250 service centers SCHOOL BUS SCHOOL BUS Dedicated Manufacturing Footprint Micro Bird JV Facility (Drummondville, Quebec, Canada) Parts Distribution Center (Delaware, Ohio) Blue Bird South and Assembly (Fort Valley, Georgia) SCHOOL BUS Corporate Office (Macon, Georgia) SCHOOL BUS 0 School Bus Industry Products Type C Buses (Conventional) Seating Capacity: 36-83 Fuel Types: Diesel, Propane, CNG, Gasoline, Electric Type D RE Buses (Rear Engine, Transit- Style) Seating Capacity: 66-84 Fuel Types: Diesel, CNG, Electric Type D FE Buses (Front Engine, Transit- Style) Seating Capacity: 54-90 Fuel Type: Diesel Type A Buses Seating Capacity: 10-30 Fuel Types: Diesel, Propane, Gasoline, Electric (2018) Blue Bird offers most expansive range, from 10 to 90 passengers with multiple body and engine choices BLUE BIRD 11#12Proven Leadership in Clean Technologies Diesel Gas Propane CNG Electric --Alt-Power mix 11,317 10,378 9,604 8,654 17% 17% 26% 11,649 11,017 38% 34% 48% 8,878 58% 62% 8.514 48% 50% 6,679 6,882 POWERED BY PROPANE POWERED BY CNG POWERED BY ELECTRICITY POWERED BY GASOLINE Proven track record of leadership in new technologies; more than 60% of unit sales are non- diesel ■ Leader in electric and propane- powered school buses; the future of school transportation $5B of Federal funding secured in the infrastructure bill for electric school buses will accelerate adoption Launched its Blue Bird Energy Services and Clean Bus Solutions JV business to provide turnkey charging infrastructure solutions for electric school bus fleets FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 BLUE BIRD Trusted lower-emission school bus brand with a proven track record in the school bus business 12#13EPA Clean School Bus Program Round 2 and Round 3 The Bipartisan Infrastructure Law of 2021 authorizes EPA to offer rebates and grants to replace existing school buses with clean and zero-emission (ZE) models. Round 2 (2023 Grant Program) $400 Million available Anticipated Award Selection Dec. 2023 Jan. 2024 - Anticipated Awards February - March 2024 Blue Bird supported 18 applications which represents 38 districts and 984 buses Round 3 (2023 Rebate Program) $500 Million available Applications Accepted September 28, 2023 - January 31, 2024 Anticipated Award Selection April 2024 Winners will have until April 2026 to purchase buses and close out their awards EPA CLEAN SCHOOL BUS We are well positioned to capitalize on these opportunities BLUE BIRD 13#14Build Complete Ecosystem for EV School Bus Deployment END OF LIFE Determine recycling program for used batteries after use SERVICE & SUPPORT Connect with dealer and EV system provider to support and service bus throughout its lifetime TELEMATICS Set up a solution to track bus performance, diagnostics and more DEPLOYMENT Build and deliver buses, as well as offer driver, safety and technician training services BLUE BIRD 三 BLUE BIRD EV ECOSYSTEM $ ASSESSMENT Determine what bus best fits the customer's needs based on terrain, climate and route planning FINANCING Identify financing through grants, tax breaks, subsidies or lending services F INFRASTRUCTURE Assess infrastructure needs and connect to the right partners for energy sourcing and infrastructure installation V2G/V2X Create vehicle-to-grid plan with revenue potential and utility involvement 14#15Fueling Our EV Long-Term Growth: Fleet-as-a-Service JV ➤ Formed "Clean Bus Solutions" - 50/50 JV with Generate Capital and Blue Bird to accelerate electric school bus adoption; exclusive to Blue Bird customers and dealers Buses purchased By JV through dealer network ➤ Offers affordable monthly service fee for Blue Bird electric bus fleet, charging infrastructure, associated planning and customization; other service add-ons available Eliminates upfront capital expense for EV purchase and provides customer peace-of-mind from turnkey solution ➤ Provides Blue Bird and dealers access to new recurring revenue streams during the entire product lifecycle Anticipated to represent up to 10% of EV sales, near-term BLUE BIRD NO PARK SCHOOL BUS G GENERATE BLUEBFO LEADER IN SCHOOL BUS ELECTRICATION Generate is a sustainable infrastructure investment and operating company. Generate finances, builds, owns and operates affordable and resilient resources to de-risk and accelerate the infrastructure transition. Generate provides flexible capital solutions and integrated services to the innovative technology providers and project developers who deploy the energy, waste, transportation, water, agriculture and smart cities solutions required to fight climate change. WASTE POWER MOBILITY CITIES & WATER Strategic JV created to accelerate EV adoption and provide recurring revenue streams 15#16BLUE BIRD FY2024 Objectives 16#172024 Priorities Align with Our Strategy Take CARE of Employees DELIVER Profitable DELIGHT Customers Great Service Growth & Dealers Competitive Cost Leader in Safety Sustained Profitable Growth 8% 10% 12%+ EBITDA Margin Alt Power Leader Best Products & Features Highest Quality & Durability BLUE BIRD Our core strategies drive our plans towards profitable growth 17#18SCHOOL BUS SCHOOL BUS Significant Investments Starting in FY2024 Products and Powertrain Next gen Ford Gas / Propane Manufacturing and Supply Chain Evaluate capacity expansion People and Processes Inflationary pressures and labor • Product enhancements for EV • Production facility updates. • Competitive employee benefits • New safety offerings • Quality improvements • Complexity reduction initiative Commercial chassis EV Supply chain to 50/day • Upgrade ERP system / FP&A BI Engineering expenses 2x YoY, to ~$25M CAPEX / Tooling 3x YoY, to ~$25M Inflationary costs ~2% of Revenues After three years of cash preservation, we plan for increased investments in growth from FY24 on BLUE BIRD 18#19Legacy Units Behind, "New Normal" Backlog Margins Ahead 28% 100% 100% 72% Status 09/30/23 Production Quarter 31% 64% 74% 57% 82% 92% 36% 26% 12% FY22-Q1 FY22-Q2 FY22-Q3 FY22-Q4 FY23-Q1 FY23-Q2 16% -2% FY23-Q3 7% FY23-Q4 BLUE BIRD FY23 Backlog (20-25% pricing) FY22 Newer Backlog (11-15% pricing) FY21 Old Backlog (0-5% pricing) FY2024 Mid-Year price increase of $2,500/bus for orders after April 1st, 2024 New backlog with significantly improved pricing in place for FY24 19#20FY2024 Guidance Raised to $115M and ~10% EBITDA Adj. EBITDA ($M) 1 +27 (+30%) 115 105 - 125 88 FY24 Updated Scenarios Downside Guidance Upside Supply Chain FY24 QTRS: Revenue $275 - $325M Units 8,500 8,750 9,000 Adj. EBITDA Revenue $M $1,150 $1,200 $1,250 Adj. EBITDA $M $105 $25 - $35M 9%-11% $115 $125 Adj. EBITDA % 9.1% 9.6% 10.0% 7.8% FY23 Rev. ($M) $1,133 Blue Bird Raises Guidance for FY24: ~$1.2Bn in Revenue (+6% YoY, upside +10% YoY) Adj. EBITDA 9.6% and $115M (+30% YoY) 9.6% FY24 $1,150 - $1,250 BLUE BIRD See appendix for additional detail regarding non-GAAP measures 20 20#21FY2024 Guidance Raised to $115M and -10% EBITDA BLUE BIRD $ Millions FY2023 Actuals FY2024 Initial Aug. Guidance FY2024 Dec. Updated Guidance B/(W) Vs. Prior Year Net Revenue $1,133 $1,100 - $1,200 $1,150 $1,250 - $17 - $117 Adj. EBITDA1 $88 $75 - $95 $105 - $125 $17-$37 Adj. Free Cash Flow 1 $121 N/A $50 - $60 $(71) - $(61) FY2024 expected to be a new record for Blue Bird for both top-line and bottom-line results See appendix for additional detail regarding non-GAAP measures 21#22Record Profit Outlook in FY2024 & Beyond Bookings 3%+ = ~8,750 units 36.8k 36.1k 35.8k Revenue 6%+ = $1.2 Billion Adj. EBITDA 30%+$115 Million Adj. EBITDA Margin 2 ppts+ = ~10% EV Bookings BLUE BIRD 65%+900 units FY17 NA School Bus Industry Class 6-7* 29.6k 26.4k 25.7k FY18 FY20 FY19 *ACT Retail Sales - as of October 2023 39.6k 38.7k 36.6k 32.6k 30.9k ~10% CAGR FY21 FY22 FY23 FY24 FY25 FY26 FY27 EBITDA margins of ~10% NOW and 11%-12% mid term, in a normalized operating environment 22 22#23BLUE BIRD Solid Growth Runway 23#24Profitable Growth Driven by EV and Lean Transformation Units Revenue $M Diesel Gas/Propane EV CNG 12,000 11,317 11,646 -2,503 (-23%) 11,017 December Updated Updated Normal Guidance Year Outlook → Rev. $M 12,000 11,000 3,000 10,500 10,000 9,500 8,878 8,514 8,750 2,500 8,000 6,679 6,822 2,000 2,000 1,750 6,000 1,500 1,500 1,350 4,000 1,019 1,133 1,200 879 1,000 991 1,025 800 684 2,000 5,000 3,500 500 0 -7 56 158 -146 269 546 900 1,500 2,500 0 2017 2018 2019 2020 2021 2022 2023 2024 New Short Term Mid Term Mid Term Long Term Guidance (Normal Year) (Low) (High) COVID/Transformation 12.0% 12.5% 11.0% 9.6% 10.0% 7.8% 300 Adj. EBITDA % Adj. EBITDA $M 200 8.0% 7.0% 6.9% 6.2% 5.1% 100 69 70 82 55 -15 88 35 88 250 210 115 135 165 0 -1.8% 2017 2018 2019 2020 2021 2022 2023 2024 New Guidance Short Term (Normal Year) Mid Term Mid Term Long Term (Low) (High) BLUE BIRD Growth path towards 5,000 EV's, ~$2B Revenue and 12%+ Adj. EBITDA ($250M+) See appendix for additional detail regarding non-GAAP measures 24#25Strong Outlook Ahead for Blue Bird / Investment Highlights Countercyclical National Commitment Strong industry growth ahead with a backdrop of healthy funding and an aging school bus fleet Beneficiary of $5B US Government's commitment to the electrification of school buses The Leader Expanding our TAM Leading market position in alternative power and electric school buses Product portfolio further diversified through introduction of EV commercial chassis offering Reducing Costs Reducing structural costs through Lean Transformation Profitable Growth Pricing aligned to market economics and volatility BLUE BIRD EBITDA margins of ~10% in 2024 and 12%+ the mid-term, in a normalized operating environment 25#26BLUE BIRD Appendix 26#27FY2023 Q4 and Full Year Financial Results FY2023 Q4 Results FY2023 Full Year Results FINANCIAL HIGHLIGHTS BLUE BIRD UNITS SOLD 2,116 +100 vs.'22 NET SALES $303M +$45M vs.'22 Adjusted EBITDA $41M VI Adjusted FCF $35M +$57M vs.'22 +$6M vs.'22 See appendix for additional detail regarding non-GAAP measures FINANCIAL HIGHLIGHTS UNITS SOLD 8,514 +1,692 vs.'22 NET SALES $1,133M +$332M vs. '22 Adjusted EBITDA $88M +$103M vs.'22 Adjusted FCF $121 M +$144M vs.'22 Reporting Blue Bird's Adj. EBITDA Best Quarter Ever of $41M, and Best Year Ever of $88M 27 27#28Fourth Quarter Income Statement ($ Millions) FY23-Q4 FY22-Q4 B/(W) Unit Volume 2,116 2,016 100 Unit Backlog 4,559 5,016 (457) Net Revenue $303.0 $257.7 $45.3 Bus Rev./Unit ($000's) $131.2 $117.0 $14.2 Gross Margin 16.5% (1.7)% 18.2 ppts Adj. Net Income¹ $21.3 $(21.4) $42.7 Adj. EBITDA 1 $40.7 $(16.2) $56.9 Adj. EBITDA Margin¹ 13.4% (6.3)% 19.7 ppts Adj. Diluted EPS1 $0.66 $(0.66) $1.32 BLUE BIRD FY23 Q4 is the best quarter ever for both top line revenue and bottom line Adj. EBITDA 1See appendix for additional detail regarding non-GAAP measures 28#29Full Year Income Statement ($ Millions) Unit Volume FY2023 FY2022 B/(W) 8,514 6,822 1,692 Unit Backlog 4,559 5,016 (457) Net Revenue $1,132.8 $800.6 $332.2 Bus Rev./Unit ($000's) $121.5 $106.1 $15.4 Gross Margin 12.3% 4.6% 7.7 ppts Adj. Net Income¹ $34.5 $(36.0) $70.5 Adj. EBITDA 1 $87.9 $(14.7) $102.6 Adj. EBITDA Margin¹ 7.8% (1.8)% 9.6 ppts Adj. Diluted EPS1 $1.07 $(1.15) $2.22 FY23 is the best year ever for both top line revenue and bottom line Adj. EBITDA BLUE BIRD 1See appendix for additional detail regarding non-GAAP measures 29 20#30Balance Sheet and Cash Flow Summary ($ Millions) Cash Debt Liquidity Operating Cash Flow Adj. Free Cash Flow 1 Trade Working Capital* FY2023 FY2022 B/(W) $79.0 $10.5 $68.5 $(130.3) $(170.2) $39.9 $163.4 $85.3 $78.1 $119.9 $(24.4) $144.3 $121.1 $(22.8) $143.9 $36.4 $6.0 $30.4 Strong Operating Cash Flow drives record levels of Adj. Free Cash Flow and Liquidity * Inventories, accounts receivable and accounts payable BLUE BIRD 1See appendix for additional detail regarding non-GAAP measures 30#31New Debt Agreement in Place Confirms Our Strong Position Duration ■ Term loan Revolver ■ Accordion 5 years, November 17 2023 - 2028 $100M, 5% per year amortization $150M, no amortization Upsize option $100M or TTM EBITDA Pricing Grid SOFR Net Leverage Ratio SOFR Margin Unused Fee > 2.25x 325 bps 45 bps > 1.50x but < 2.25x 300 bps 35 bps Covenants ■ Other NLR <3x, Fixed charge coverage ratio >1.2x Flexibility for M&A, stock buybacks > 1.00x but < 1.50x < 1.00x 250 bps 30 bps 175 bps 25 bps ■ Left-Lead Bank BMO M ■ Joint Lead Arrangers BANK OF AMERICA l CIBC REGIONS FIFTH THIRD BANK ■ Other Lenders TD Bank FIRST first financial bank BLUE BIRD The new agreement provides financial stability and flexibility for the future 31#32FY22 to FY23 Adj. EBITDA Walk: $103M YoY Improvement Adj. EBITDA ($M) 1 + 103 88 SCHOOL BUS Unit Volumes FY2022 6,822 FY2023 Delta 8,514 1,692 Rev. ($M) (2)% (15) FY22 $801 FY23 Best Year EVER Record Revenue Record EVS +40% +100% Record Adj. EBITDA +$103M YoY Record Cash Flow +$144M YOY 8% Units up 25% from ~6,800 to ~8,500, EV doubled to 500+ Revenue up 40%, Gross Margin up 8pp to 13% Adj. EBITDA up $103M, and up 10pp to 8% Best Year Ever Adj. EBITDA with ~2,500 less units BLUE BIRD See appendix for additional detail regarding non-GAAP measures FY23 $1,133 32#33FY22 to FY23 Adj. EBITDA Walk: $103M YoY Improvement ($ Millions) Unit Volumes FY2022 6,822 FY2023 8,514 Delta 1,692 (2)% (15) FY2022 +103 17 17 Pricing, EV Mix 20 JV Net Income (17) + ITDA Addback Labor Costs 66 Higher Rev. and Margins SG&A and Engineering Efficiency Improvements, Operating Leverage 88 8% Adj. EBITDA Bus Vol., Price-Mat. Bus Operations Parts Gross Profit JV Micro Bird OPEX/ FY2023 Other Adj. EBITDA Significant improvements in Pricing, Operations, Parts and Micro Bird JV drove record FY23 results BLUE BIRD See appendix for additional detail regarding non-GAAP measures 33#34After Rising Recently, Steel Prices Are Expected to Flatten US Steel Prices, USD/ST, Jan '22-Apr '24 US Steel Price $/ST HR 2,000 1,500 1,000 500 BLUE BIRD HR Fut. - CR Scrap Scrap Fut. Futures 12/8 6/8 12/7 1,300 1,200 880 1,054 930 683 317 429 357 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2022 2023 HR index refreshes daily, CR & HDG refresh weekly on Thursday, Scrap refreshes monthly on the 10th. Futures values derived from Goldman Sachs (as of 8th of December 2023). Sources: AMM Fastmarkets 2024 34#35Adj. EBITDA Reconciliation BLUE BIRD Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended September 30, 2023 October 1, 2022 Twelve Months Ended September 30, 2023 October 1, 2022 (in thousands of dollars) Net income (loss) Adjustments: $ 18,618 $ (23,095) $ 23,812 $ (45,759) Interest expense, net (1) 3,457 5,277 17,380 14,973 Income tax expense (benefit) 8,661 (5,134) 8,953 (11,451) Depreciation, amortization, and disposals (2) 4,437 4,425 17,914 15,212 Operational transformation initiatives 624 1,562 1,757 7,213 Loss on debt modification 71 537 632 Share-based compensation expense 1,944 537 4,173 3,690 Product redesign initiatives 549 Stockholder transaction costs 1,119 7,371 Micro Bird total interest expense, net; income tax expense or benefit; depreciation expense and amortization expense 1,850 117 Other 5,456 574 (90) 285 Adjusted EBITDA $ 40,710 $ (16,240) $ 87,927 $ (14,746) Adjusted EBITDA Margin (percentage of net sales) 13.4 % (6.3)% 7.8 % (1.8)% (1) Includes $0.1 million for both three months ended September 30, 2023 and October 1, 2022, and $0.4 million and $0.3 million for the twelve months ended September 30, 2023 and October 1, 2022, respectively, representing interest expense on operating lease liabilities, which are a component of lease expense and presented as a single operating expense in selling, general and administrative expenses on our Condensed Consolidated Statements of Operations. (2) Includes $0.5 million and $0.2 million for the three months ended September 30, 2023 and October 1, 2022, respectively, and $1.8 million and $1.1 million for the twelve months ended September 30, 2023 and October 1, 2022, respectively representing amortization charges on right-of-use lease assets, which are a component of lease expense and presented as a single operating expense in selling, general and administrative expenses on our Condensed Consolidated Statements of Operations. 35#36Free Cash Flow Reconciliation BLUE BIRD Reconciliation of Free Cash Flow to Adjusted Free Cash Flow Three Months Ended (in thousands of dollars) Net cash provided by (used in) operating activities Cash paid for fixed assets Free cash flow Cash paid for product redesign initiatives Twelve Months Ended September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 35,797 $ 30,014 $ 119.928 $ (24,437) (2,130) (1,705) (8,520) (6,453) 33,667 $ 28.309 $ 111,408 $ (30,890) 549 Cash paid for operational transformation initiatives 624 1,562 1,757 7,213 Cash paid for stockholder transaction costs 1,119 Cash paid for other items Adjusted free cash flow 35.410 29.871 7,371 574 121,110 285 (22,843) 36#37Adjusted EPS Reconciliation BLUE BIRD (in thousands of dollars) Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) Three Months Ended September 30, 2023 October 1, 2022 18.618 $ Twelve Months Ended September 30, 2023 October 1, 2022 (45,759) (23,095) $ 23,812 $ Net income (loss) $ Adjustments, net of tax benefit or expense (1) Operational trans formation initiatives Product redesign initiatives Share-based compensation expense Stockholder transaction costs Loss on debt modification Other Adjusted net income (loss), non-GAAP $ 462 1,234 1,300 5.698 434 1,439 424 3,088 2,915 828 5,455 56 397 499 425 225 21,347 $ (21,381) 34,477 (35,988) (1) Amounts are net of estimated tax rates of 26% for the three and twelve months ended September 30, 2023, and 21% for the three and twelve months ended October 1, 2022. Reconciliation of Diluted EPS to Adjusted Diluted EPS Three Months Ended Twelve Months Ended September 30, 2023 October 1, 2022 0.58 $ (0.72) $ September 30, 2023 October 1, 2022 0.74 $ (1.48) 0.08 0.06 0.33 0.33 0.66 (0.66) 1.07 $ (1.15) 32,364,765 32,306,574 32,258,652 31,233,401 Diluted earnings (loss) per share $ One-time charge adjustments, net of tax benefit or expense Adjusted diluted earnings (loss) per share, non-GAAP Adjusted weighted average dilutive shares outstanding 37#38BLUE BIRD Investor Relations Contact Information Mark Benfield [email protected] 38