Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Q3 2019 Earnings Presentation
19 slides from Bombardier Inc. Class A's earnings presentation, Oct 31, 2019
Slide 1: Financial Results for the Third Quarter 2019
b FINANCIAL RESULTS FOR THE THIRD QUARTER 2019 OCTOBER 31, 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 guidance in respect of various financial and global metrics and sources of contribution theret
Slide 3: Sale of Aerostructures Business to Spirit AeroSystems
SALE OF AEROSTRUCTURES BUSINESS TO SPIRIT AEROSYSTEMS b ▪ Definitive agreement for the acquisition by Spirit of aerostructures REVENUES activities in Belfast, UK; Casablanca, Morocco; and the Dallas, U.S. 2019 ESTIMATES maintenance, repair and overhaul facility (MRO) Internal Bombardier ▪ Supply agr
Slide 4: Q3 Financial Performance
Q3 FINANCIAL PERFORMANCE b 2 REVENUES EARNINGS ADJUSTED EPS $3.6B $3.7B $333M $255M $0.04 $271M Adj. EBITDA2 $(0.04) Adj. EBIT2 $159M Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Note: Chart data may not be to scale. 1 Excluding divestitures and currency translation impact 4 2 Non-GAAP measure. F
Slide 5: Q3 Financial Performance (Cont'd)
Q3 FINANCIAL PERFORMANCE (CONT’D) b FCF USAGE 1 AVAILABLE SHORT-TERM 2 CAPITAL RESOURCES 4 $5.0B Available revolving $1.0B credit facilities 3 $3.0B $1.0B M&A proceeds $(370)M $0.8B $3.0B Cash on hand $2.3B $(682)M Q3 2018 Q3 2019 Sept Sept 30 30, 2019 2019 Dec 31, 2019 Pro Forma Actuals Pro Forma E
Slide 6: 2019 Financials
2019 FINANCIALS b 2019 YEAR TO DATE 2019 GUIDANCE REVENUES $11,552M $16.5 – 17.0B 1 ADJ. EBITDA $833M $1.20 – 1.30B 1 ADJ. EBIT $536M $700 – 800M 1 FCF $(2,155)M ~$(500)M Refer to our disclosure on forward-looking statements and assumptions at the beginning of this presentation. 1 Non-GAAP measure.
Slide 7: Transportation Highlights
TRANSPORTATION HIGHLIGHTS b REVENUES EARNINGS $212M 9.9% $2.2B $2.1B $144M $187M 6.6% 8.7% Adj. EBITDA2 $110M Adj. EBIT2 5.1% Q3 2018 Q3 2019 Q3 2018 Q3 2019 3 Q3 REVENUE BREAKDOWN BACKLOG AND BOOK-TO-BILL (T4Q) 1.3 1.1 1.1 10% 1.0 $35.1B $34.5B $33.8B $33.6B 26% $2.2B 64% Rolling Stock and Systems
Slide 8: Aviation Highlights
AVIATION HIGHLIGHTS b REVENUES EARNINGS $1.6B $166M $154M $1.5B 11.0% 9.9% Adj. EBITDA2 $129M 8.6% $93M Adj. EBIT2 6.0% Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 DELIVERIES BACKLOG 6 9 $4.3B $4.5B $2.7B $2.6B 5 $15.3B $15.3B 37 $14.3B $14.9B 17 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Large Medium Light Commercial
Slide 9: Progress Driving the Turnaround
PROGRESS DRIVING THE TURNAROUND b POSITIVE MOMENTUM TURNING THE CORNER STRENGTHENING & AT AVIATION AT TRANSPORTATION SIMPLIFYING THE BUSINESS 9
Slide 10: Bombardier
BOMBARDIER
Slide 11: Consolidated Q3 Financial Performance
CONSOLIDATED Q3 FINANCIAL PERFORMANCE b Three-month periods ended Sept 30 2019 2018 VARIANCE YEAR TO DATE 2019 GUIDANCE REVENUES $3.7B $3.6B 2% $11.6B $16.5-17.0B 1 ADJUSTED EBITDA $255M $333M (23)% $833M $1.2-1.3B ADJUSTED EBITDA MARGIN 1 6.9% 9.1% (220) bps 7.2% EBIT $143M $267M (46)% $1.2B EBIT M
Slide 12: Transportation Q3 Financial Performance
TRANSPORTATION Q3 FINANCIAL PERFORMANCE b Three-month periods ended Sept 30 2019 2018 VARIANCE YEAR TO DATE 2019 GUIDANCE REVENUES $2.2B $2.1B 2% $6.5B ~$8.75B 1 ADJUSTED EBITDA $144M $212M (32)% $408M 1 ADJUSTED EBITDA MARGIN 6.6% 9.9% (330) bps 6.3% EBIT $88M $184M (52)% $258M EBIT MARGIN 4.0% 8.6
Slide 13: Aviation Q3 Financial Performance
AVIATION Q3 FINANCIAL PERFORMANCE b Three-month periods ended Sept 30 2019 2018 VARIANCE YEAR TO DATE 2019 GUIDANCE REVENUES $1.6B $1.5B 4.0% $5.1B ~$8.0B $166M 1 ADJUSTED EBITDA $154M (7)% $578M 1 ADJUSTED EBITDA MARGIN 9.9% 11.0% (110) bps 11.4% EBIT $96M $132M (27)% $1.1B EBIT MARGIN 6.2% 8.8% (2
Slide 14: Bombardier Aviation Segment Reconciliation
BOMBARDIER AVIATION SEGMENT RECONCILIATION b 2018 2019 Q1 Q2 Q3 Q4 FY Q1 Q2 H1 REVENUES $1,110 $1,307 $1,083 $1,494 $4,994 $970 $1,382 $2,352 BUSINESS AIRCRAFT ADJUSTED EBIT1 98 111 89 122 420 74 97 171 ADJUSTED EBIT % 8.8% 8.5% 8.2% 8.2% 8.4% 7.6% 7.0% 7.3% REVENUES $463 $616 $256 $421 $1,756 $241
Slide 15: Aircraft Disclaimer and Caution Regarding Non-GAAP Financial Measures
GLOBAL 5500, GLOBAL 6500, GLOBAL 8000 AND LEARJET 75 LIBERTY b AIRCRAFT DISCLAIMER The Global 5500, Global 6500, Global 8000 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 sp
Slide 16: Reconciliation of Segment to Consolidated Results
RECONCILIATION OF SEGMENT TO CONSOLIDATED RESULTS b 16
Slide 17: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES b 17
Slide 18: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES b 18
Slide 19: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES b 19