Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — RBC Capital Markets' Aerospace & Defense Conference (May 2011)
43 slides from Bombardier Inc. Class A's conference presentation, May 2011
Slide 1: RBC Capital Markets' Aerospace & Defense Conference
RBC Capital Markets' Aerospace & Defense Conference Presentation to investors Shirley Chénier, Senior Director Investor Relations May 2011
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements, which may involve, but are not limited to, statements with respect to the ours objectives, targets, goals, priorities and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimate
Slide 3: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Conclusion
Slide 4: Bombardier – A Global Market Leader
Bombardier – A Global Market Leader For the fiscal year 2011 (in millions of U.S. dollars) BOMBARDIER INC. Revenues $ 17,712 Free Cash Flow $ 605 EBITDA $ 1,460 Backlog(a) $ 50,100 EBIT $ 1,050 EPS(b) (in U.S. dollars) $ 0.42 Net income $ 769 Employees(a) 65,400 AEROSPACE TRANSPORTATION Market leade
Slide 5: Bombardier Today
Bombardier Today 65,400 employees* 100 nationalities 25 languages A presence in more than 60 countries Customers in more than 100 countries * As of January 31, 2011 5
Slide 6: Bombardier Today: rail cars in service
Bombardier Today More than 100,000 Bombardier rail cars and locomotives in service worldwide 6
Slide 7: Bombardier Today: aircraft takeoffs and landings
Bombardier Today Every three seconds, a Bombardier aircraft takes off or lands somewhere around the globe 7
Slide 8: Bombardier – A truly global company
Bombardier – A truly global company Employees F2011 Revenues Geographic segmentation Geographic segmentation 4% 4% 6% 6% 33% 18% 23% 47% 12% 47% Canada US Europe Canada US Europe Asia-Pacific Other Asia-Pacific Other Total employees*: 65,400 Total F2011 revenues: US$17.7 billion * As of January 31,
Slide 9: Bombardier – From entrepreneurial to global leader
Bombardier – From entrepreneurial to global leader 1942-1973 1974-1985 1986-1993 1994-2001 2002-today Consolidation Entry Invention of Rail Aerospace Global of leadership snowmobile transportation leadership position Revenues* $0.7 B $1.0 B $5.6 B $12.4 B $17.7 B Major Lohnerwerke MLW Canadair Waggo
Slide 10: To achieve our aspirations – Our way forward
To achieve our aspirations – Our way forward We have established five priorities Become number one in customer satisfaction 1 through enhanced execution discipline 2 Raise our game on global talent management 3 Actively manage our exposure to key business risks 4 Establish local roots in all our key
Slide 11: We are proactively managing our liquidity
We are proactively managing our liquidity Short-term capital resources (as at January 31 - in billions of dollars) 4.7 0.5 3.9 3.9 3.6 3.5 0.5 1.0 2.6 4.2 3.4 2.9 2006 2007 2008 2009 2010 2011 Cash and cash equivalents Available credit facility 11
Slide 12: Essentially debt repayment-free until 2016
Essentially debt repayment-free until 2016 Debt Maturity Profile (as of January 31, 2011 - in millions of dollars) Debt Repurchased Weighted average maturity: 8.9 years New Debt Issued Debt Unchanged by the Liability Exercises 723 1,077 1,070 940 850 399 650 400 151 162 2011 2012 2013 2014 2015 2016
Slide 13: Financial results overview
Financial results overview (In millions of U.S. dollars) Full Year Full Year Q4 Q4 F2011 % F2010 % F2011 % F2010 % Revenues Aerospace 2,874 2,675 8,614 9,357 Transportation 2,498 2,677 9,098 10,009 Total Revenues 5,372 5,352 17,712 19,366 EBIT Aerospace 181 6.3 106 4.0 448 5.2 473 5.1 Transportation
Slide 14: Free cash flow
Free cash flow (In millions of U.S. dollars) Q4 Q4 Full Year Full Year F2011 F2010 F2011 F2010 Aerospace Cash flows from operating activities 1,030 445 1,000 344 Net additions to PPE & intangible assets (260) (233) (956) (611) Total Aerospace 770 212 44 (267) Transportation 799 372 744 293 Interest
Slide 15: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Conclusion
Slide 16: Bombardier Aerospace - A Global Market Leader
Bombardier Aerospace - A Global Market Leader Balanced portfolio of products and services AEROSPACE REVENUE BREAKDOWN BY BUSINESS (%) Aerospace revenue – Fiscal year 2011 Other (1) 13% Aircraft Services(2) 18% Business Aircraft 44% Commercial Aircraft 25% Total Revenues F2011 = $8,614 million (1) Ot
Slide 17: Business Aircraft product portfolio
Bombardier’s Business Aircraft offers the industry’s most complete product portfolio LEARJET LEARJET Family Family Learjet 40 XR Learjet 45 XR Learjet 60 XR Learjet 85 CHALLENGER CHALLENGER Family Family Challenger 300 Challenger 605 Challenger 800 Series GLOBAL GLOBAL Family Family Global 5000 Glob
Slide 18: Well-positioned in the business jet market
Bombardier is well-positioned in the business jet market with product line covering 94% of revenues Market LARGE Shares VERY LIGHT JETS MEDIUM JETS LARGE JETS CORPORATE CY 2010* LIGHT JETS L40XR L45XR L60XR L85 CL-300 CL-605 CL-850 G5000 GEX-XRS Bombardier 32% Global Vision G8000 G7000 Mustang CJ3 X
Slide 19: Orders and backlog – Business aircraft
Orders and backlog – Business aircraft Net orders, deliveries and book-to-bill Business aircraft (FY06 – FY11) 1.9 Net orders Deliveries 452 Book-to-bill 1.3 1.1 1.1 Approximately 150 274 0.7 business aircraft to 232 251 235 219 212 be delivered in the 197 176 143 11-month year 107 C2011*. -85 FY06
Slide 20: Commercial Aircraft portfolio aligned with market trends
Bombardier’s Commercial Aircraft portfolio is aligned with current market trends towards environmentally friendly aircraft Q-SERIES Q-SERIES Turboprop Turboprop Q400 NextGen CRJ CRJ NextGen NextGen Regional Regional jets jets CRJ700 NextGen CRJ900 NextGen CRJ1000 NextGen CSERIES CSERIES Mainline Mai
Slide 21: Competitors offer aircraft in each segment
Competitors offer aircraft in each of Bombardier Commercial Aircraft’s segments… Turboprops Q400 NextGen ATR 72 Regional Jets Embraer COMAC CRJ NextGen MRJ SSJ E170/175/190 ARJ21 Single-Aisle Mainline Jets Embraer Airbus Boeing CSeries E195 A318/A319 737-600/700 Bombardier is the leader in the 20- t
Slide 22: CSeries – A New Family for the 100 to 149-seat Segment
CSeries – A New Family Optimized for the Lower End of the 100 to 149-seat Market Segment Is Long Overdue CRJ200 CRJ700 CS100 The Only Design Specifically Focused CRJ900 BOMBARDIER on the 100-149 Seat CRJ1000 Segment CS300 ERJ135 E170 Embraer ERJ145 E175 E190 E195 Downsized From Upsized From Optimum
Slide 23: CSeries – A Game Changer in its Class
CSeries – A Game Changer in its Class 90 firm orders and 90 options from three customers to date Family of Aircraft with Full Operational Commonality Unmatched Reduction in Environmental Footprint Total Life Cycle Cost Improvement 15% Better Cash Operating Costs – 20% Fuel Burn Advantage Widebody Co
Slide 24: CSeries Aircraft Program
CSeries Aircraft Program Executing according to plan Technologies Selection and Program Launched At 2008 Farnborough Airshow Finalizing Conceptual Design Phase And Start 2009 Definition Of System Interfaces Joint Definition Phase / Detail Design Phase 2010 Technologies Demonstrators and Facilities C
Slide 25: CSeries – Orders
CSeries – Orders We are tracking – Right where we should be Program Orders Prior to EIS* Aircraft Launch EIS A320 Family March 1982 March 1988 1000 737NG Nov. 1993 Dec. 1997 900 787 April 2004 May 2008 800 CSeries July 2008 2013 700 600 CSeries 500 A320 Family 400 737NG 787 300 200 100 0 -84 -78 -72
Slide 26: Orders and backlog – Commercial aircraft
Orders and backlog – Commercial aircraft Net orders, deliveries and book-to-bill Commercial aircraft (FY06 – FY11) Net orders 1.9 Deliveries 238 Book-to-bill 1.0 0.8 1.0 0.6 0.7 We expect deliveries for commercial aircraft to 138 128 121 112 114 110 be approximately 90 87 88 93 97 81 units for the 1
Slide 27: Investing in new product development
Bombardier Aerospace is investing significant amounts in new product development Investment in CAPEX (in millions of dollars) 956 New product development: Global Vision flight deck 611 Learjet 85 426 CSeries 286 Global 7000/8000 217 167 FY06 FY07 FY08 FY09 FY10 FY11 Capital expenditures, including s
Slide 28: Aerospace – Outlook
Aerospace – Outlook What we expect * Approximately 150 business jet deliveries in the 11-month period ending December 31, 2011 Approximately 90 commercial aircraft deliveries in the 11-month period ending December 31, 2011 EBIT margin under IFRS for the 11-month period ending December 31, 2011 shoul
Slide 29: Aerospace – The road to 10% EBIT
Aerospace – The road to 10% EBIT EBIT margins - Aerospace Goal 8% Fiscal years 2007-2011, Calendar 2013 EBIT achieved Goal 10% EBIT* 9.0% 5.8% 5.1% 5.2% 3.9% FY2007 FY2008 FY2009 FY2010 FY2011 C2013 We will reach our goal by: Improved volumes in business, commercial aircraft and services Continued i
Slide 30: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Conclusion
Slide 31: Full range of products and solutions for customers
We are providing a full range of products and solutions to our customers around the world Rolling stock Services System & Signaling Passengers Locomotives Systems Rail Control & Equipment Solutions Light rail vehicles Locomotives Fleet management Automated people Integrated control movers systems Me
Slide 32: Transportation Revenues by product line and region
Transportation Revenues by product line and geographic region Other 4% System and signaling 15% North America 13% Services 15% Asia-Pacific 18% Rolling stock 70% Europe 65% F2011 F2011 Total Revenues F2011 = $9,098 million Note: Revenues are attributed to countries based on the location of the custo
Slide 33: BT is the market leader in the rail industry
BT is the market leader in the rail industry Despite the economic downturn, the rail technology market experienced a strong growth Average market shares based on order intake 2008-10 BT market position by segment Bombardier relevant market* Segments 2008-10 Light rail vehicles #1 Metro cars #3 19% O
Slide 34: The fundamentals of the rail industry are positive
The fundamentals of the rail industry are positive Accessible market by segment (for calendar years) (in billions of dollars) 147.6 2.3% 125.5 17.9 3.2% 14.4 28.5 Rail Control 1.0% and Systems 26.7 Infrastructure 3.4% 45.8 36.2 Services 2.0% 48.2 55.4 Rolling Stock 2007-2009 Actual 2015-16 Outlook S
Slide 35: Transportation – Strong order intake
Transportation – Strong order intake is the base for future revenue growth Orders, revenues and book-to-bill (Orders and revenues in billions of dollars) 1.8 1.5 1.0 1.0 1.6 16 Book-to-bill 14.3 14 Order intake Revenues 11.8 12 11.3 10 9.8 9.8 9.6 10.0 9.1 7.8 8 6.6 6 4 2 0 F2007 F2008 F2009 F2010 F
Slide 36: Recent orders
Recent orders Order for a 24-kilometre INNOVIA Monorail 300 system in São Paulo, Brazil ($747 million) Contract with Trenitalia of Italy for 50 very high speed trainsets (400 cars) V300ZEFIRO ($889 million) A fourth contract for 40 additional CRH1 high speed trains in China ($373 million) Order in J
Slide 37: Market expected to remain at a high level
In the medium term, the market is expected to remain at a high level with major tenders progressing Market outlook Key projects to be awarded Project name Scope In the short to medium term, the market DB intercity Intercity trains 1 trains (ICx)1 220 trains 1,000 cars will be fuelled by several larg
Slide 38: Transportation – Well positioned in an attractive market
Transportation – Well positioned in an attractive market Overall market continues to grow A large number of tenders are planned for the coming years Long-term trends such as urbanization and cost of congestion vis-à-vis price of energy – all favour rail Bombardier Transportation is well-positioned:
Slide 39: Transportation – The road to 8% EBIT
Transportation – The road to 8% EBIT EBIT margins - Transportation Fiscal years 2007-2011, Calendar 2013 Goal 6% Goal 8% Before special items EBIT EBIT* achieved 6.6% 6.2% 5.5% 4.5% 4.0% FY2007 FY2008 FY2009 FY2010 FY2011 C2013 We will reach our goal by: Focus on flawless execution Leverage our proj
Slide 40: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Conclusion
Slide 41: Conclusion – We have what it takes to ensure profitable growth
Conclusion – We have what it takes to ensure profitable growth at Bombardier CSeries program New business aircraft programs Transportation geographic expansion Transportation margin improvement Business aircraft recovery Increase aftermarkets sales penetration 50-seat aircraft replacement Major stra
Slide 42: Today, the success story continues … CSeries
Today, the success story continues … CSeries 42
Slide 43: Today, the success story continues … Zefiro
Today, the success story continues … Zefiro 43
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