Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — FY2017 Earnings Presentation
14 slides from Bombardier Inc. Class A's earnings presentation, Feb 15, 2018
Slide 1: Financial Results for the Fourth Quarter and Full Year 2017
FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2017 FEBRUARY 15, 2018 STAKEHOLDERS PRESENTATION
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation’s objectives, guidance, targets, goals, priorities, market and strategies, financial position, beliefs, prospects,
Slide 3: Demonstrating Earnings and Cash Flow Momentum
DEMONSTRATING EARNINGS AND CASH FLOW MOMEMTUM 2017 KEY FINANCIAL HIGHLIGHTS Guidance Consolidated Revenues $16.2B EBIT +57% before special items1 $672M YoY BT, BBA & BAES Margins1,2 >8% Free Cash Flow $200M Usage1 $786M better than Guidance Cash on Hand $3.1B 1 Non-GAAP measure. See Caution
Slide 4: Outstanding Finish to 2017
OUTSTANDING FINISH TO 2017 Q4 2016 Q4 2017 HIGHLIGHTS 22% growth at BT, before currency effect REVENUES $4.4B $4.7B 44 deliveries in BBA 22 deliveries in BCA, including 5 C Series Q4 Margin1,2 expansion across units: EBIT BT at 8.7% 8.4% for 2017 before special items1 $104M $215M BBA a
Slide 5: Controlled & Predictable FCF Performance
CONTROLLED & PREDICTABLE FCF PERFORMANCE 2017 $872M of FCF1 generation in Q4 Invested $1.3B in 2017 to fund growth FCF 1 • BBA development spend $1.1B (focused on Global 7000) ($786M) • Includes BT inventory buildup to support growth, and C Series inventory resulting from engine delays Include
Slide 6: Strong Financial Performance Across All Segments
STRONG FINANCIAL PERFORMANCE ACROSS ALL SEGMENTS Q4 REVENUES EBIT1 MARGIN1 HIGHLIGHTS 2017 $2.5B $217M 8.7% Revenues increased 28% QoQ, 22% excl. FX BT 20% EBIT1 growth QoQ 2016 $1.9B $181M 9.3% 5th consecutive quarter with EBIT margin1 ≥ 8.0% 140 deliveries for the year 2017 $1.5B $120M 8.1
Slide 7: Entering 2018 with Key Elements in Place to Drive Growth
ENTERING 2018 WITH KEY ELEMENTS IN PLACE TO DRIVE GROWTH 2018 EBIT / GUIDANCE1 REVENUES EBITDA FCF2 BEFORE SPECIAL ITEMS2 EBIT MARGIN BEFORE SPECIAL ITEMS2 $17.0 – $17.5B $1.15 – $1.25B $800 – $900M Breakeven CONSOLIDATED ±$150M BT ~ $9.0B > 8.5% BBA ≥ $5.0B ≥ 8.0% ~ 135 deliveries BCA ~ $2.7B (~ $3
Slide 8: Strong Momentum Continues: Approaching the Mid Point in the Turnaround Plan
STRONG MOMENTUM CONTINUES APPROACHING THE MID POINT IN THE TURNAROUND PLAN DEMONSTRATED ABILITY TO IMPROVE THE COST STRUCTURE POSITIONED TO GROW WITH OUR LEADING PORTFOLIO FOCUSED ON… BRINGING THE GLOBAL 7000 INTO SERVICE DELIVERING ON MAJOR RAIL PROJECTS CLOSING THE AIRBUS PARTNERSHIP 8
Slide 9: Bombardier
BOMBARDIER
Slide 10: Global 7000 and Global 8000 Aircraft Program Disclaimer
GLOBAL 7000 AND GLOBAL 8000 AIRCRAFT PROGRAM DISCLAIMER The Global 7000 and Global 8000 aircraft program is currently in development, and as such is subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data are approximate, may change
Slide 11: Reconciliation of Segment to Consolidated Results
RECONCILIATION OF SEGMENT TO CONSOLIDATED RESULTS Fourth quarters Fiscal years ended December 31 ended December 31 2017 2016 2017 2016 Revenues Business Aircraft $ 1,473 $ 1,651 $ 4,961 $ 5,741 Commercial Aircraft 677 699 2,382 2,617 Aerostructures and Engineering Services 413 319 1,570 1,549 Transp
Slide 12: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Reconciliation of EBITDA before special items and EBITDA to EBIT Fourth quarters Fiscal years ended December 31 ended December 31 2017 2016 2017 2016 EBIT $ 149 $ 74 $ 246 $ (58) Amortization 89 99 314 371 Impairment charges on PP&E and intangible assets 6 10 51 1
Slide 13: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Reconciliation of adjusted net income (loss) to net loss and computation of adjusted EPS Fourth quarters ended December 31 2017 2016 (per share) (per share) Net loss $ (109) $ (259) Adjustments to EBIT related to special items 66 $ 0.03 30 $ 0.01 Adjustments to ne
Slide 14: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Reconciliation of adjusted net income (loss) to net loss and computation of adjusted EPS Fiscal years ended December 31 2017 2016 (per share) (per share) Net loss $ (553) $ (981) Adjustments to EBIT related to special items 426 $ 0.19 485 $ 0.22 Adjustments to net