#1BLUE BIRD SCHOOL BUS ER WOR BLUE BIRD "A Leader in zero- and Ⓡ low-emission transportation" BLUE BIRD CORPORATION (NASDAQ: BLBD) Investor Presentation February 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 FY2023 Objectives Growth Runway BLUE BIRD SCHOOL BUS 4#5Investment Highlights BLUE BIRD Well positioned for growth given the backdrop of an aging school bus fleet Primed to be a direct beneficiary of $5B of infrastructure US Government's commitment to electrification of school buses Leading market position in alternative power with a scaling EV business and an expected surge in EV Demand Product portfolio further diversified through introduction of EV commercial chassis offering Reducing structural costs through lean transformation leading to operational efficiencies Price increases to offset rising commodity costs 10%+ EBITDA margin 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 School Bus Customers Lion ~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#8Type C & D School Bus Industry 1985 2000 2001 2002 2003 2004 2005 2006 2007 2008 Long Term Avg. ('85-'19) Mean: 31,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1993 1994 1995 1996 1997 Historical Registrations 1998 1999 Industry avg size (pre-COVID) is 31,000 new units annually based on Polk registrations ■ Total fleet of school buses is ~515,000 units and average age is about 10 years 1986 1987 1988 1989 1990 1991 1992 Industry size is driven by: Number of school age children ☐ Age of existing fleet - most states set 15 years as a replacement target 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 Source: R.L. Polk New Registrations, based on Type C/D school buses & non-school buses in US/CAN registered thru Dec. 2022 BLUE BIRD 8#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) Corporate Office (Macon, Georgia) SCHOOL BUS 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 11,649 11,317 11,017 10,616 10,378 48% 48% 9,064 17% 17% 26% 38% 34% 50% 8,878 58% 6,679 6,822 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 BLUE BIRD POWERED BY PROPANE POWERED BY CNG POWERED BY ELECTRICITY POWERED BY GASOLINE ■ Proven track record of leadership in new technologies; more than 50% 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 business to provide turnkey charging infrastructure solutions for electric school bus fleets Trusted lower-emission school bus brand with a proven track record in the school bus business 12#13EPA Clean School Bus Rebate Program Program Overview $5B funding over 5 years ~$1B released in 2022 2,468 Buses awarded at 391 School Districts 2022 Lottery Results Other OEMS 690 Blue Bird Corporate and Dealers ~300 Loyal BB Customers and 200- 400 Channel Partners Short-term Impact for Blue Bird ~$200M revenue Total of 500-700 orders ~1,200 Unallocated winnings Long-term Impact for Blue Bird During 5 year program, ~$1B+ in potential revenue for Blue Bird Next funding allocation expected to start in early 2023 as competitive grant program BLUE BIRD * 1 CNG-powered bus awarded 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#15BLUE BIRD FY2023 Objectives 15#16FY2023 Objectives & Focus Areas Take CARE of Employees ⚫ Safety • • Employee engagement Voluntary attrition DELIVER Profitable Growth EBITDA Free cash flow •% of alt power BLUE BIRD DELIGHT Customers & Dealers • Defects per unit • 30-day warranty • On-time delivery Our People Lean Transformation BLUE BIRD Stability Kanban JIT PRO 5s LEAN Kaizen Heijunka Waste Expanding Our TAM Scaling EV 800 great 16#17CARE of Employees FY2023 Focus Areas Focus Area Our People Lean Transformation Completed Leadership team transformation completed ✓ Rolled out a comprehensive employee engagement plan to improve employee satisfaction Improving the span of control and accountability in manufacturing Revamped off-line and final finish processes Improved material flow ✓ DPU's reduced significantly and plant efficiency improving ✓ Lean initiatives already reduced 15+ hours out of standard Future Levers DELIVER Profitable Growth DELIGHT Customers & Dealers • Continuing upgrades in the manufacturing facility ○ See clear path to 30% reduction in hours per bus (HPB) by 2025 Expanding Our TAM Scaling EV Launched prototype EV commercial chassis at ACT Expo ✓ EV Commercial chassis TAM over 30,000, effectively doubling Blue Bird's market Construction continues on ~40,000 sq. ft. building for EV Chassis assembly to expand production to 12 per day by the end of 1H of 2023, then to 20 per day by the end of 2023 To be a showcase of World Class Manufacturing (WCM) ○ Targeting Last Mile Delivery Stripped Chassis & High- end Motorhomes ○ Expect EV commercial chassis demo units in CY2023 • Longer term goal of increasing production to 5,000 EV units BLUE BIRD 17#18Pricing is Taking Hold - Backlog Profile Improving 28% 100% 100% 72% Status 01/30/23 Production Quarter 64% 74% 5% 27% 61% 50% 60% 39% 27% 36% 26% 12% 9% FY22-Q1 FY22-Q2 FY22-Q3 FY22-Q4 FY23-Q1 FY23-Q2 8% FY23-Q3 2% FY23-Q4 BLUE BIRD Production Schedule almost Full through Q4 (Some Q3/Q4 slots reserved for EV, T3 into FY24) FY23 Orders to go FY23 Backlog (+25% pricing) FY22 Newer Backlog (11-15% pricing) FY21 Old Backlog (0-5% pricing) Newer backlog and increasingly improved pricing in place and locked in from FY23-Q2 18#19Key Success Factors Already in Place for FY2023 Rev. $235 Adj. EBITDA 1 $245 - $260 $255 - $270 Q1 guidance met; Record Revenues and EV sales ✓ Raising Revenues and EBITDA guidance for FY23 ✓ Fiscal Year almost sold out, with locked higher pricing ✓ Softening raw material prices (i.e. Steel) impact in H2 $265 - $285 $1,000 - $1,050 $M 20 18-22 ~43 40 - 46 ~4% Older Backlog Pricing missing ~5% increase, headwind of ~(10)M 15 13-17 10 9-11 ~8% ~6% (4) ~(2)% ~4% BLUE BIRD FY23-Q1 Actual FY23-Q2 FY23-Q3 FY23-Q4 FY23 Total Return to historical profitability in FY23, Q4 run-rate Adj. EBITDA of ~$80M+ on ~$1Bn Revenues See appendix for additional detail regarding non-GAAP measures 19#20FY2023 Guidance Raised: Strong profitability in FY2023-H2 $ Millions FY2022 Actuals FY2023 Initial Guidance FY2023 Updated Guidance B/(W) Vs. Prior Year Net Revenue $800 - $900 $1,000 $1,000 $1,050 $200 - $250 FY23-Q1 with headwinds from old backlog pricing Improved volumes expected during Q2 and Q3, combined with increased margins (higher pricing Adj. EBITDA1 $(15) $35 - $45 $40 - $46 $55 - $61 and lower raw materials costs) Adj. Free Cash Flow1 $(23) $0 - $10 $5 - $11 $28 - $34 BLUE BIRD Q3 and Q4 back to historical margins, driven by improved pricing and higher EV bus volumes Return to historical profitability in FY23, Q4 run-rate Adj. EBITDA of ~$80M+ on ~$1Bn Revenues See appendix for additional detail regarding non-GAAP measures 20 20#21Positioned for Strong Recovery in FY2023 & Beyond 39.6k 38.7k 36.6k 33.5k 45,000 Bookings 20%+ = 8,250+ units NA School Bus Industry Class 6-7* 40,000 36.8k 35.8k 36.1k 35,000 Revenue 25% $1 Billion 30,000 29.6k 27.4k 26.4k 25.7k 25,000 Parts Revenue 10%+ = $84+ Million 20,000 15,000 EBITDA ~4x = $43 million 10,000 5,000 EV Bookings 85%+ 500+ units BLUE BIRD ~10% CAGR FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 *ACT Retail Sales - as of Nov. 2022 The business is back on track and the outlook for our industry is incredibly strong 21#22BLUE BIRD Solid Growth Runway 22 22#23Long-term Outlook Driven by EV growth and Lean Transformation Units Revenues $M Diesel Gas Propane CNG EV Outlook Rev. $M 12,000 11,317 11,646 12,000 11,017 10,500 11,000 3,000 10,000 9,500 8,878 2,500 8,250 2,000 8,000 6,679 6,822 1,750 2,000 6,000 1,500 1,500 1,250 4,000 1,019 879 1,025 1,000 991 1,025 800 684 2,000 5,000 3,500 500 0 500 1,500 2,500 0 2017 2018 2019 2020 2021 2022 2023 Fcst Short Term (Normal Year) Mid Term Mid Term Long Term (Low) (High) 300 15% 12% Adj. EBITDA % Adj. EBITDA $M 11% 10% 200 8% 8% 7% 10% 7% 6% 5% 4% 250 100 200 5% 150 69 70 82 55 35 -15 100 43 0 0% -2% 2017 2018 2019 2020 2021 2022 2023 Fcst Short Term (Normal Year) Mid Term (Low) Mid Term (High) Long Term BLUE BIRD Growth path towards 5,000 EVs, $2Bn Revenues and 12% Adj. EBITDA (~$250M) 23#24Strong 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 $5B US Government's commitment to the electrification of school buses The Leader Expanding our TAM Leading market position in alternative power and electric school buses Product portfolio further diversified through introduction of EV commercial chassis offering Reducing Costs Reducing structural costs through Lean transformation Profitable Growth BLUE BIRD Pricing aligned to market economics and external forces 10%+ Adjusted EBITDA margin in a normalized mid-term operating environment 24#25BLUE BIRD Appendix 25 25#26Income Statement ($ Millions) FY2023-Q1 FY2022-Q1 B/(W) Unit Volume 1,957 1,149 808 Unit Backlog 5.335 4,854 481 Net Revenue $235.7 $129.2 Bus Rev./Unit ($000's) $109.0 $97.9 Gross Margin 3.2% 12.5% $106.5 $11.1/10% (930) bps Adj. Net Income¹ $(9.8) $(2.0) $(7.8) Adj. EBITDA 1 $(4.2) $3.6 $(7.8) Adj. EBITDA Margin¹ Adj. Diluted EPS1 (1.8)% 2.8% (460) bps $(0.30) $(0.07) $(0.23) Significant improvement in operations, offset by higher costs and lower prices on legacy backlog units 1See appendix for additional detail regarding non-GAAP measures BLUE BIRD 26#27Balance Sheet and Cash Flow ($ Millions) Cash Debt Liquidity¹ FY2023-Q1 FY2022-Q1 B/(W) $5.7 $4.1 $1.6 $(149.1) $(165.3) $16.2 $84.4 $92.8 $(8.4) Operating Cash Flow $19.9 $(33.1) $53.0 Adj. Free Cash Flow2 $19.6 $(34.1) $53.7 Trade Working Capital* $33.8 $(24.0) $57.8 Positive Free Cash Flow for Q1, primarily due to Trade Working Capital BLUE BIRD * Inventories, accounts receivable and accounts payable 1Minimum liquidity covenant for FY23-Q1 of $30M 2 See appendix for additional detail regarding non-GAAP measures 27 22#28FY2022-Q1 to FY2023-Q1 Adj. EBITDA Walk ($ Millions) Q1 Unit Volume FY2023 -1,957 FY2022 1,149 Delta - 808 3.6 3% of Net Rev. FY22-Q1 Adj. EBITDA BLUE BIRD -7.8 0.9 4.6 (2)% of Net Rev. (4.2) 15.0 20.8 ୮ 10.0 8% of Net Rev. (13.3) Bus Gross Profit Parts Gross Profit OPEX/Other FY23-Q1 Adj. EBITDA Addback Add FY23 H2 Legacy Volume and Simulated FY23-Q1 Pricing Pricing/Costs Adj. EBITDA to FY22 + Higher Volume + Higher Volume + Lower Fixed Costs Legacy Pricing + Increased Margins FY23-Q1 is the last quarter with significant number of legacy old priced buses from 2021, with effect of ~$(10)M See appendix for additional detail regarding non-GAAP measures 28#29Adj. EBITDA Reconciliation Reconciliation of Net Income to Adjusted EBITDA BLUE BIRD (in thousands of dollars) Net loss Adjustments: Interest expense, net (1) Income tax benefit Depreciation, amortization, and disposals (2) Operational transformation initiatives Share-based compensation expense Product redesign initiatives Restructuring charges Costs directly attributed to the COVID-19 pandemic (3) Loss on debt modification Adjusted EBITDA Adjusted EBITDA Margin (percentage of net sales) Three Months Ended December 31, 2022 (11,294) $ S January 1, 2022 (4.082) 4.289 3.157 (2,981) 3,815 (1,762) 3.523 800 1 589 1.673 253 246 29 537 561 S (4,245) S 3.599 (1.8)% 2.8 % (1) Includes $0.1 million for both fiscal periods, representing interest expense on 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 $0.4 million and $0.2 million for the three months ended December 31, 2022 and January 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. (3) Primarily represents costs incurred for third party cleaning services and personal protective equipment for our employees in response to the COVID-19 pandemic. 29 29#30Free Cash Flow Reconciliation BLUE BIRD Reconciliation of Free Cash Flow to Adjusted Free Cash Flow (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 Cash paid for operational transformation initiatives / Other Cash paid for restructuring charges Cash paid for costs directly attributed to COVID-19 Adjusted free cash flow Three Months Ended December 31, 2022 January 1, 2022 S 19,926 $ (33,077) (1,146) (1.570) S 18.780 $ (34.647) 253 800 1 246 29 19,580 (34,118) 30#31Adjusted EPS Reconciliation Reconciliation of Net Income to Adjusted Net Income and of Diluted EPS to Adjusted Diluted EPS BLUE BIRD (in thousands of dollars) Net loss Adjustments, net of tax benefit or expense (1) Operational transformation initiatives Product redesign initiatives Share-based compensation expense Restructuring charges Costs directly attributed to the COVID-19 pandemic (2) Loss on debt modification Adjusted net (loss) income, non-GAAP $ (11,294) $ Three Months Ended December 31, 2022 January 1, 2022 (4,082) $ 632 1 190 465 1,255 185 22 424 (9,772) $ 421 (2,010) (1) Amounts are net of estimated statutory tax rates of 21% for the three months ended December 31, 2022, and 25% for the three months ended January 1, 2021. (2) Primarily costs incurred for third party cleaning services and personal protective equipment for our employees in response to the COVID-19 pandemic. Three Months Ended December 31, 2022 Diluted loss per share $ One-time charge adjustments, net of tax benefit or expense Adjusted diluted (loss) earnings per share, non-GAAP Weighted average dilutive shares outstanding $ (0.35) $ 0.05 (0.30) $ 32,243,213 January 1, 2022 (0.15) 0.08 (0.07) 28,395,912 31#32BLUE BIRD End 32