Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Investor Presentation (March 2012)
36 slides from Bombardier Inc. Class A's investor presentation, March 2012
Slide 1: Presentation to investors
Presentation to investors Pierre Alary, Senior Vice President and Chief Financial Officer March 2012
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 our objectives, guidance, targets, goals, priorities and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, est
Slide 3: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Financials and Outlook
Slide 4: Bombardier – A Global Market Leader
Bombardier – A Global Market Leader For the fiscal year ended December 31, 2011 (in millions of U.S. dollars) BOMBARDIER INC. Revenues $ 18,347 Free Cash Flow $ (1,232) EBITDA $ 1,535 Backlog(a) $ 53,900 EBIT $ 1,202 EPS(b) (in U.S. dollars) $ 0.47 Net income $ 837 Employees(a) 70,000 AEROSPACE TRAN
Slide 5: 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 $18.3 B ** Major Lohnerwerke MLW Canadair Wa
Slide 6: Bombardier Today
Bombardier Today 70,000 employees* 100 nationalities 25 languages A presence in more than 60 countries Customers in more than 100 countries * As of December 31, 2011 6
Slide 7: Bombardier Today
Bombardier Today More than 100,000 Bombardier rail cars and locomotives in service worldwide 7
Slide 8: Bombardier Today
Bombardier Today Every three seconds, a Bombardier aircraft takes off or lands somewhere around the globe 8
Slide 9: Bombardier – A truly global company
Bombardier – A truly global company Employees Revenues Geographic segmentation Geographic segmentation 4% 4% 10% 7% 34% 15% 24% 46% 12% 44% Canada US Europe Canada US Europe Asia-Pacific Other Asia-Pacific Other Total employees*: 70,000 Total revenues**: US$18.3 billion * As of December 31, 2011 **
Slide 10: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Financials and Outlook
Slide 11: 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 ended December 31, 2011 Other (1) 12% Aircraft Services(2) 18% Business Aircraft 50% Commercial Aircraft 20% Total Revenues = $8,594 m
Slide 12: Bombardier’s Business Aircraft offers the industry’s most complete product portfolio
Bombardier’s Business Aircraft offers the industry’s most complete product portfolio LEARJET FAMILY LEARJET 40 XR LEARJET 45 XR LEARJET 60 XR LEARJET 85 CHALLENGER FAMILY CHALLENGER 300 CHALLENGER 605 CHALLENGER 850 CHALLENGER 870 GLOBAL FAMILY GLOBAL 5000 GLOBAL 6000 GLOBAL 7000 GLOBAL 8000 Bombard
Slide 13: Well-positioned in the business jet market
Bombardier is well-positioned in the business jet market with a product line covering 94% of revenues MARKET SHARE VERY LIGHT JETS MEDIUM JETS LARGE JETS C2011 LIGHT JETS L40XR L45XR L60XR L85 CL-300 CL-605 CL-850 G5000 G6000 Bombardier 37% Global Vision G8000 G7000 Mustang CJ3 XLS+ Sovereign Citati
Slide 14: Business aircraft orders and deliveries
Business aircraft orders and deliveries Net orders, deliveries and book-to-bill Business aircraft (FY06 – 2011) Canadian GAAP IFRS Net orders Deliveries 1.9 Book-to-bill 452 1.3 1.1 1.1 1.2 274 0.7 232 251 235 219 212 197 191 176 155 163 107 -85 FY06 FY07 FY08 FY09 FY11 2011* FY10 -0.5 * 11-month pe
Slide 15: Commercial Aircraft portfolio aligned with market trends
Bombardier’s Commercial Aircraft portfolio is aligned with current market trends towards environmentally friendly aircraft Q-SERIES Optimized Turboprop short-haul solution Q400 NEXTGEN CRJ NextGen Optimized regional Regional jets network solution CRJ700 NEXTGEN CRJ900 NEXTGEN CRJ1000 NEXTGEN CSERIES
Slide 16: Competitors offer aircraft in each of Bombardier Commercial Aircraft’s segments
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 regio
Slide 17: CSeries – A New Family Optimized 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 CS100 The Only Design CRJ700 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 18: CSeries development progressing well
The development of the CSeries is progressing well and we’re tracking right where we should be Cseries Firm Orders and Commitments (as of March 1, 2012) 317 CUMULATIVE ORDER HISTORY BY MONTH LEADING UP TO ORIGINAL EIS* 7 Years 6 Years 5 Years 4 Years 3 Years 2 Years 1 Year Publicly announced LOIs 10
Slide 19: Commercial aircraft orders and deliveries
Commercial aircraft orders and deliveries Net orders, deliveries and book-to-bill Commercial aircraft (FY06 – 2011) Net orders Deliveries 1.9 Book-to-bill Canadian GAAP IFRS 238 1.0 0.8 1.0 0.6 0.7 0.7 138 128 121 112 114 110 87 88 93 97 81 78 54 FY06 FY07 FY08 FY09 FY10 FY11 2011* * 11-month period
Slide 20: Investing in new product development
Bombardier Aerospace is investing significant amounts in new product development Investment in CAPEX (in millions of dollars) New product development: Global Vision flight deck Learjet 85 CSeries Global 7000/8000 Capital expenditures, including significant investments in product development, are exp
Slide 21: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Financials and Outlook
Slide 22: 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 23: Transportation Revenues by product line and geographic region
Transportation Revenues by product line and geographic region System and Other 15% 7% signaling North America 14% Services 15% Asia-Pacific 15% Rolling stock 70% Europe 64% F2011 F2011 Total Revenues = $9,753 million Note: Revenues are attributed to countries based on the location of the customer 23
Slide 24: Fundamentals of the rail industry are positive
The fundamentals of the rail industry are positive Accessible market by segment (three and two calendar year averages) (in billions of dollars) CAGR: 2.1% 107.7 96.9 19.6 System and 17.7 Signalling 40.1 Services 33.8 Rolling Stock 45.4 48.0 2009-2011 Actual 2015-16 Outlook Source: UNIFE 2010 Study.
Slide 25: Transportation – Strong backlog is the base for future revenue growth
Transportation – Strong backlog is the base for future revenue growth Orders, revenues and book-to-bill (for the fiscal years ended - Orders and revenues in billions of dollars) 1.8 1.5 1.0 1.0 1.6 1.0 16 14.3 14 Order intake Revenues 11.8 12 11.3 9.8 9.8 10.0 9.7 9.8 10 9.6 9.1 7.8 8 6.6 6 4 2 0 Ja
Slide 26: The market is expected to remain at a high level
The market is expected to remain at a high level Market outlook Key projects to be awarded Project name Scope In the short to medium term, the market PRASA Part 1 More than 1200 cars will be fuelled by several large contracts, Queensland Rail More than 700 cars already in advanced stages. In the lon
Slide 27: Transportation – road to 8% margin
Transportation – Well positioned in an attractive market and making good progress on its road to 8% Canadian GAAP IFRS 8.0% 7.2% 7.2% 6.2% 5.5% 2.4% Jan. 2008 Jan. 2009 Jan. 2010 Jan. 2011 Dec. 2011 Dec. 2012 Dec. 2013 (Target) Transportation is well positioned in an attractive market: – Trends such
Slide 28: Agenda
Agenda 1 Overview 2 Aerospace 3 Transportation 4 Financials and Outlook
Slide 29: Solid liquidity position
Solid liquidity position Short-term capital resources (as at - in billions of dollars) 29
Slide 30: Debt Maturity Profile Pro Forma
Debt Maturity Profile Pro Forma (notional amounts, in millions of U.S. dollars) 30
Slide 31: Segmented information
Segmented information Fourth quarters ended Fiscal years ended (In millions of U.S. dollars) December 31, January 31, December January 31, 2011 % 2011 % 31, 2011 % 2011 % Revenues Aerospace 2,016 3,091 8,594 8,809 Transportation 2,300 2,495 9,753 9,083 Total Revenues 4,316 5,586 18,347 17,892 EBIT A
Slide 32: Financial results overview
Financial results overview Fourth quarters ended Fiscal years ended (In millions of U.S. dollars, except December 31, January 31, December 31, January 31, per share amounts) 2011 2011 2011 2011 Revenues 4,316 5,586 18,347 17,892 EBIT 293 427 1,202 1,205 Financing expense, net 33 38 162 208 EBT 260 3
Slide 33: Free cash flow
Free cash flow Fourth quarters ended Fiscal years ended (In millions of U.S. dollars) December 31, January 31, December 31, January 31, 2011 2011 2011 2011 Aerospace Cash flows from operating activities 442 1,045 867 1,013 Net additions to PPE & intangible assets (332) (283) (1,320) (1,008) Total Ae
Slide 34: Outlook 2012
Outlook 2012 Aerospace Deliveries of approximately 180 business jets and 55 commercial aircraft Expect EBIT margin of approximately 5% – with profitability higher in the second half of the year Cash flows from operations significant enough to substantially fund our investment in new programs estimat
Slide 35: Today, the success story continues … CSeries
Today, the success story continues … CSeries 35
Slide 36: Today, the success story continues … Zefiro
Today, the success story continues … Zefiro 36