21 slides from Bombardier Inc. Class A's earnings presentation, Feb 13, 2020
Slide 1: Financial Results for the Fourth Quarter and Full Year 2019
PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. FEBRUARY 13, 2020 FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2019
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS b This presentation includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribu
Slide 3: Assumptions
ASSUMPTIONS b Forward-looking statements1 in this section of the presentation are based on and subject to the following material assumptions: Overall business • normal execution and delivery of current backlog; • the ability to understand customer needs and portfolio of products and services to driv
Slide 4: Sale of Bombardier's Remaining Interest in ACLP
SALE OF BOMBARDIER’S REMAINING INTEREST IN ACLP b TRANSACTION OVERVIEW FINANCIAL PACKAGE ▪ Sale of Bombardier’s remaining interests in ACLP to ▪ Proceeds of ~$600M, of which ~$530M is payable on Airbus and Investissement Québec closing, with the balance paid over 2020-2021 ▪ Transfer of aerostructur
Slide 5: Pro Forma Liquidity
PRO FORMA LIQUIDITY b ~$5.5B $1.3B AVAILABLE REVOLVING CREDIT FACILITY ~$4.2B ~$1.1B ~$1.1B CRJ & CRJ & AEROSTRUCTURES AEROSTRUCTURES PROCEEDS PROCEEDS 1 ~$0.5B ~$0.5B $2.6B ACLP PROCEEDS ACLP PROCEEDS TRANSPORTATION $0.5B $2.6B $2.6B BOMBARDIER INC. (Including Aviation) $2.0B CASH ON HAND CASH ON H
Slide 6: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE b 1 REVENUES EARNINGS ADJUSTED EPS $1.3B $0.14 $16.2B $0.9B $0.05 $15.8B $1.0B $1.0B Adj. EBITDA1 $0.8B $4.3B $4.2B $370M $0.5B Adj. EBIT1 $(0.10) $(0.16) $286M $(0.25) $63M $(66)M Q4 2018 Q4 2019 FY 2018 FY 2019 Q4 2018 Q4 2019 FY 2018 FY 2019 Q4 2018 Q4 2019 FY 2
Slide 7: Consolidated Financial Performance (Cont'd)
CONSOLIDATED FINANCIAL PERFORMANCE (CONT’D) b 1 1, 2 FREE CASH FLOW LIQUIDITY $1,041M $952M $4.4B $3.9B $1.2B $182M $1.3B Available revolving $3.2B credit facility $2.6B Cash on hand ($1,203M) Q4 2018 Q4 2019 FY 2018 FY 2019 Dec 31, Dec 31, 2018 2019 Note: Chart data may not be to scale. Refer to ou
Slide 8: Aviation Highlights
AVIATION HIGHLIGHTS b REVENUES 2019 DELIVERIES $7.3B $7.5B 12 33 175 76 $2.4B $2.1B 54 Light Medium Large Commercial Q4 2018 Q4 2019 FY 2018 FY 2019 Business Aircraft EARNINGS BACKLOG $812M 10.8% $643M Adj. EBITDA1 8.8% $4.3B $1.9B Other Aviation2 $242M $234M 11.3% $14.3B $14.4B 9.7% $531M Adj. EBIT
Slide 9: Transportation Highlights
TRANSPORTATION HIGHLIGHTS b REVENUES REVENUES DISTRIBUTION $8.9B $8.3B 18% 49% $1.8B $2.2B 33% $1.8B Q4 2018 Q4 2019 FY 2018 FY 2019 Rolling Stock & Systems Services Signalling 1, 2 EARNINGS BACKLOG & BOOK-TO-BILL $851M 9.5% 1.2 1.1 $750M 8.4% $212M $35.8B $34.5B 2.6% $193M Adj. EBITDA1 8.9% $167M $
Slide 10: 2020 Outlook
2020 OUTLOOK b REVENUES DOUBLE-DIGIT ORGANIC GROWTH $15.8B DIVESTITURES DIVESTITURES1 >$15.0B TRANSPORTATION GROWTH $13.7B AVIATION GROWTH 2019 2020 ACTUALS OUTLOOK Note: Chart data may not be to scale. Refer to our disclosure on forward-looking statements and assumptions at the beginning of this pr
Slide 11: 2020 Outlook
2020 OUTLOOK b 1 ADJUSTED EBITDA ~130 BPS MARGIN EXPANSION ~7.0% DIVESTITURES 5.7% TRANSPORTATION DIVESTITURES MARGIN EXPANSION AVIATION MARGIN EXPANSION 2019 2020 ACTUALS OUTLOOK 1 ADJUSTED EBIT ~50 BPS MARGIN EXPANSION ~3.5% 3.0% DIVESTITURES DIVESTITURES AVIATION TRANSPORTATION AVIATION AMORTIZAT
Slide 12: 2020 Outlook
2020 OUTLOOK b 1 FREE CASH FLOW POSITIVE2 EXCLUDING RVGs 2019 2020 WORKING CAPITAL EARNINGS 2020 ACTUALS RELEASE GROWTH OUTLOOK 2019 WORKING CAPITAL NORMALIZATION WORKING $(1.2)B RESTRUCTURING & CAPITAL RESIDUAL VALUE GUARANTEES Note: Chart data may not be to scale. Refer to our disclosure on forwar
Slide 13: Bombardier
BOMBARDIER
Slide 14: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE b Q4 2019 Q4 2018 VARIANCE FY 2019 FY 2018 GUIDANCE 2019 REVENUES $4.2B $4.3B (2.3)% $15.8B $16.2B $16.5-17.0B 1 ADJUSTED EBITDA $63M $370M (83)% $896M $1,304M $1.20-1.30B 1 ADJUSTED EBITDA % 1.5% 8.6% (710) bps 5.7% 8.0% EBIT $(1,696)M $342M (596)% $(498)M $1.0B E
Slide 15: Aviation Financial Performance
AVIATION FINANCIAL PERFORMANCE b Q4 2019 Q4 2018 VARIANCE FY 2019 FY 2018 GUIDANCE 2019 REVENUES $2.4B $2.1B 12.7% $7.5B $7.3B ~$8.0B 1 ADJUSTED EBITDA $234M $242M (3.3)% $812M $643M 1 ADJUSTED EBITDA % 9.7% 11.3% (160) bps 10.8% 8.8% EBIT $94M $171M (45)% $1,194M $424M EBIT % 3.9% 8.0% (410) bps 15
Slide 16: Transportation Financial Performance
TRANSPORTATION FINANCIAL PERFORMANCE b Q4 2019 Q4 2018 VARIANCE FY 2019 FY 2018 GUIDANCE 2019 REVENUES $1.8B $2.2B (18.0)% $8.3B $8.9B ~$8.75B 1 ADJUSTED EBITDA $(196)M $193M (202)% $212M $851M 1 ADJUSTED EBITDA % (10.9)% 8.9% (1,980) bps 2.6% 9.5% EBIT $(236)M $236M (200)% $22M $774M EBIT % (13.2)%
Slide 17: Global 8000 and Learjet 75 Liberty Aircraft Disclaimer
GLOBAL 8000 AND LEARJET 75 LIBERTY AIRCRAFT DISCLAIMER b The Global 8000 and Learjet 75 Liberty aircraft are currently in development, and as such are subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data are approximate, may chang
Slide 18: Reconciliation of Segment to Consolidated Results
RECONCILIATION OF SEGMENT TO CONSOLIDATED RESULTS b 18
Slide 19: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES b 19
Slide 20: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES b 20
Slide 21: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES b 21