Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Q4 2008 Earnings Presentation
21 slides from Bombardier Inc. Class A's earnings presentation, Apr 3, 2008
Slide 1: Fourth quarter and year-end results – F2007-08
Fourth quarter and year-end results – F2007-08 Presentation to investors, financial analysts and media April 3, 2008
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “plan”, “foresee”, “believe” or “continue” or the negatives of t
Slide 3: Agenda
Agenda 1 Overview 2 Financial results 3 Aerospace 4 Transportation 5 Conclusion 3
Slide 4: Overview
Overview Strong performance by both groups • Impressive revenue growth • Profitability increasing according to plan • Strong level of new orders for all products - high book-to-bill ratios resulting in record backlog • Excellent cash flow generation even after discretionary pension funding • De-le
Slide 5: Agenda
Agenda 1 Overview 2 Financial results 3 Aerospace 4 Transportation 5 Conclusion 5
Slide 6: Strategic priority – Improve long-term profitability
Strategic priority – Improve long-term profitability (in millions of U.S. dollars) BA Revenues BT Revenues 9,713 BA EBIT margin 8,142 8,296 8,019 7,793 BT EBIT margin before 5.8% 7,566 6,639 6,586 special items 3.9% 4.4% 3.3% 3.9% 2.5% 2.7% 0.4% F2005 F2006 F2007 F2008 F2005 F2006 F2007 F2008 20 6.0
Slide 7: Strategic priority – Maintain strong liquidity
Strategic priority – Maintain strong liquidity Improved cash generation and cash on hand Free cash flow Cash and cash equivalents (in millions of U.S. dollars) (in millions of U.S. dollars) 3,602 1,963 2,917 2,648 2,344 610 532 206 F 2005 F 2006 F 2007 F 2008 F2005 F2006 F2007 F2008 7
Slide 8: Strategic priority – Improve capital structure
Strategic priority – Improve capital structure Reduced total debt and extended maturities (in millions of U.S. dollars) (in billions of U.S. dollars) 8,429 787 7,548 7,370 550 516 1.2 1.2 1,926 6,091 2,251 1,774 518 0.9 1,180 0.6 0.5 5,716 4,747 5,080 4,393 Debt Maturities F2005 F2006 F2007 F2008 F2
Slide 9: Strategic priority – Improve capital structure
Strategic priority – Improve capital structure Reduced pension deficit (in millions of U.S. dollars) Discretionary contribution Regular contribution 384 Total contribution of $2 billion over the past four years 184 375 442 270 327 C2004 C2005 C2006 C2007 (in millions of U.S. dollars) 2,112 Unfunded
Slide 10: Future changes in accounting policies
Future changes in accounting policies New accounting standards on inventories effective February 1st, 2008 The notion of Excess Over Average Production Costs (EOAPC) does not exist under the new rules EOAPC charge will be nil for fiscal 2009 compared to $271 million for fiscal 2008 10
Slide 11: Agenda
Agenda 1 Overview 2 Financial results 3 Aerospace 4 Transportation 5 Conclusion 11
Slide 12: Business jets
Business jets Overall market continues to be strong 452 net orders in F08 vs 274 last year – book-to-bill ratio of 1.9 compared to 1.3 last year 70% of new orders are from outside of the U.S. Strong backlog – outperforms targets Business jet backlog Target range: Learjet 16 6 - 9 months Targ
Slide 13: Regional aircraft
Regional aircraft Resurgence of demand for both turboprops and regional jets 238 new orders vs 87 last year – book-to-bill of 1.9 compared to 0.8 last year Shift towards larger regional jets and turboprops continues Residual values remain stable Regional aircraft backlog Target: CRJ Series 3
Slide 14: Aerospace results
Aerospace results Revenues of $9.7 billion - an increase of 17% over last year EBIT of $563 million compared to $322 million last year EBIT margin of 5.8% vs 3.9% Free cash flow of $1.7 billion compared to $814 million last year – after discretionary pension fund contributions of $249 millio
Slide 15: Agenda
Agenda 1 Overview 2 Financial results 3 Aerospace 4 Transportation 5 Conclusion 15
Slide 16: Transportation – Market leadership
Transportation – Market leadership Another strong year with $11.3 billion of order intake • Orders were strong for all product lines • Book-to-bill ratio of 1.5 for the year Unmatched portfolio of products and services Worldwide geographic presence without equal • Largest orders of the year ca
Slide 17: Transportation – Evolution of backlog
Transportation – Evolution of backlog (in billions of U.S. dollars) 7.8 11.3 Deliveries 2.6 2.5 New orders Metronet Fx impact Adjustment 30.9 27.5 Backlog Backlog January 31, 2007 January 31, 2008 17
Slide 18: Transportation results
Transportation results Revenues increased by 18% to reach $7.8 billion – in line with high order intake over the past few years EBIT before special items increased to $339 million, compared to $255 million last year EBIT margin of 4.4% vs. 3.9% (before special items) Free cash flow of $688 m
Slide 19: Agenda
Agenda 1 Overview 2 Financial results 3 Aerospace 4 Transportation 5 Conclusion 19
Slide 20: Conclusion
Conclusion We had an excellent year on all fronts We remain committed to our strategic priorities Improve long-term profitability Maintain strong liquidity Improve capital structure 20
Slide 21: Caution regarding non-GAAP earnings measures
CAUTION REGARDING NON-GAAP EARNINGS MEASURES This presentation is based on reported earnings in accordance with Canadian generally accepted accounting principles (GAAP). It is also based on EBIT, EPS from continuing operations before special items as well as on Free Cash Flow. These non-GAAP measure