Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Q4 F2006-07 Earnings Presentation
23 slides from Bombardier Inc. Class A's earnings presentation, Mar 28, 2007
Slide 1: Fourth quarter and year-end results – F2006-07
Fourth quarter and year-end results – F2006-07 Presentation to investors, financial analysts and media March 28, 2007
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 Aerospace 3 Transportation 4 Financial results 5 Conclusion 3
Slide 4: Overview
Overview Profitability continues to improve for both groups Best year ever for business jet orders and deliveries U.S. airline restructuring ongoing Record level of order intake in Transportation as well as for the industry 4
Slide 5: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Financial results 5 Conclusion 5
Slide 6: Business jets – Market leadership
Business jets – Market leadership Overall market continues to be strong 274 orders in F07 vs 219 last year – 60% international Most complete portfolio of products in industry covering 97% of market Strong backlog – outperforms targets Target range: Global 24 12-18 months Target range: Challe
Slide 7: Regional aircraft – Market leadership
Regional aircraft – Market leadership Increased demand for turboprops Q400 attracting new customers worldwide, including from the U.S. with Frontier order Pinnacle placed order subsequent to quarter end Shift towards larger CRJs continues Northwest (and Delta, subsequent to quarter end) ha
Slide 8: Aerospace results
Aerospace results EBIT of $322M compared to $266M last year EBIT margin of 3.9% vs. 3.3% Healthy backlog at $13.2 billion compared to $10.7 billion last year 152 firm orders for regional aircraft (approx. 222 units including orders received after year end) compared to 148 last year * Busin
Slide 9: Aerospace – Margin improvement
Aerospace – Margin improvement The road to 8% EBIT Potential : 3-5% Potential : 2-3% 1.5% Potential : 1-2% 2.0% 1.0% 8.0% 8.4% 3.9% FY06/07 F2006-07 Results Non-Aircraft EOAPC EOAPC** Reduction Expense Results Margin Reduction Reduction & Improvement Operational Improvement Implementation of plan
Slide 10: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Financial results 5 Conclusion 10
Slide 11: Transportation – Market leadership
Transportation – Market leadership Unprecedented level of order intake for the year at $11.8 billion Increase of 62% compared to last year Book-to-bill ratio of 1.8 for the year Orders were across all geographic regions and product lines Market leadership thanks to unmatched portfolio of p
Slide 12: Transportation results
Transportation results EBIT before special items at $255M compared to $179M last year EBIT margin of 3.9% vs. 2.7% (before special items) Quality enhancement continues to improve margin Procurement Engineering Project management 12
Slide 13: Transportation – Drivers of EBIT margin improvement
Transportation – Drivers of EBIT margin improvement Profitable growth Book-to-bill > 1 with sound level of margin Grow Services, Systems and Signalling Develop new geographical markets: Asia, Eastern Europe, Russia Leverage best-in-class products and services mix Continue margin enhancem
Slide 14: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Financial results 5 Conclusion 14
Slide 15: Segmented information – Aerospace
Segmented information – Aerospace Q4 Q4 (In millions of U.S. dollars) F2006-07 F2005-06 F2006-07 F2005-06 Revenues Business 1,280 1,183 3,858 3,330 Regional 577 676 2,122 2,690 Other 701 541 2,250 2,067 Total 2,558 2,400 8,230 8,087 EBIT 158 6.2% 107 4.5% 322 3.9% 266 3.3% Amortization 95 90 409 406
Slide 16: Segmented information – Transportation
Segmented information – Transportation Q4 Q4 (In millions of U.S. dollars) F2006-07 F2005-06 F2006-07 F2005-06 Revenues Rolling stock 1,118 1,014 4,066 4,356 Services 386 345 1,404 1,329 System and 325 276 1,116 954 signalling Total 1,829 1,635 6,586 6,639 EBITDA before 119 6.5% 109 6.7% 364 5.5% 31
Slide 17: Financial results overview
Financial results overview (In millions of U.S. dollars, except Q4 Q4 per share amounts) F2006-07 F2005-06 F2006-07 F2005-06 Revenues 4,387 4,035 14,816 14,726 EBITDA from continuing 8.5% 7.6% 1,095 7.4% 372 306 990 6.7% operations before special items EBIT from continuing operations 5.6% 4.0% 3.9%
Slide 18: Free cash flow
Free cash flow Q4 Q4 (In millions of U.S. dollars) F2006-07 F2005-06 F2006-07 F2005-06 Aerospace Excluding aircraft 672 556 616 594 financing Aircraft financing 99 (86) 198 306 Transportation 452 330 172 44 Special items (9) (100) (77) (170) Interest and taxes (94) (53) (299) (242) Total 1,120 647 6
Slide 19: Highlights of the year
Highlights of the year Liability Management Exercise completed in the fourth quarter of F07 Pension deficit continues to be addressed • Reduction of $500M for the year (In millions of U.S. dollars) 160 Return on 169 (105) 99 plan assets Excess 154 exceeding contribution to Net actuarial Fx impac
Slide 20: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Financial results 5 Conclusion 20
Slide 21: Both groups remain focused on attaining their EBIT margin targets in the next three years
Both Bothgroups groupsremain remainfocused focusedononattaining attainingtheir theirEBIT EBIT margin margintargets targetsin inthe thenext nextthree threeyears years 21
Slide 22: 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 EBITDA, EBIT, EBT and EPS from continuing operations before special items as well as on Free Cash Flow. These
Slide 23: Fourth quarter and year-end results – F2006-07
Fourth quarter and year-end results – F2006-07 Presentation to investors, financial analysts and media March 28, 2007