Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Deutsche Bank 2011 Leverage Finance Conference
45 slides from Bombardier Inc. Class A's conference presentation, October 2011
Slide 1: Deutsche Bank - 2011 Leverage Finance Conference Presentation to investors
Deutsche Bank - 2011 Leverage Finance Conference Presentation to investors Pierre Alary, Senior Vice President and CFO, Bombardier Inc. October 2011
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 the ours objectives, targets, goals, priorities and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimate
Slide 3: Agenda
Agenda 1 Overview 2 Transportation 3 Aerospace 4 Financials
Slide 4: Bombardier – A Global Market Leader
Bombardier – A Global Market Leader For the last 12 months ended July 31, 2011 (in millions of U.S. dollars) BOMBARDIER INC. Revenues $ 18,991 Free Cash Flow $ (130) EBITDA $ 1,634 Backlog(a) $ 56,900 EBIT $ 1,285 EPS(c) (in U.S. dollars) $ 0.48 Net income $ 873 Employees(b) 65,400 AEROSPACE TRANSPO
Slide 5: Bombardier Today
Bombardier Today 65,400 employees* 100 nationalities 25 languages A presence in more than 60 countries Customers in more than 100 countries * As of January 31, 2011 5
Slide 6: Bombardier Transportation Today
Bombardier Transportation Today Manufacturing, sales and service sites worldwide Over 100,000 Bombardier rail cars and locomotives in usage globally today 6
Slide 7: Bombardier Aerospace Today
Bombardier Aerospace Today Since 1989, Bombardier Aerospace has launched 28 successful new aircraft programs. Today, more than 6,100 Bombardier aircraft are in operation worldwide. This represents: 28,000 take-offs and landings per day – or 1,200 per hour – or 20 per minute – or Every three seconds,
Slide 8: Bombardier – A truly global company
Bombardier – A truly global company Employees F2011 Revenues Geographic segmentation Geographic segmentation 4% 4% 6% 6% 33% 18% 23% 47% 12% 47% Canada US Europe Canada US Europe Asia-Pacific Other Asia-Pacific Other Total employees*: 65,400 Total F2011 revenues: US$17.7 billion * As of January 31,
Slide 9: 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 $17.7 B Major Lohnerwerke MLW Canadair Waggo
Slide 10: To achieve our aspirations – Our way forward
To achieve our aspirations – Our way forward We have established five priorities Become number one in customer satisfaction 1 through enhanced execution discipline 2 Raise our game on global talent management 3 Actively manage our exposure to key business risks 4 Establish local roots in all our key
Slide 11: Agenda
Agenda 1 Overview 2 Transportation 3 Aerospace 4 Financials
Slide 12: We are providing a full range of products and solutions to our 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 13: Transportation Revenues by product line and geographic region
Transportation Revenues by product line and geographic region Other 4% System and signaling 15% North America 13% Services 15% Asia-Pacific 18% Rolling stock 70% Europe 65% F2011 F2011 Total Revenues LTM* = $9,798 million Note: Revenues are attributed to countries based on the location of the custom
Slide 14: BT is the market leader in the rail industry
BT is the market leader in the rail industry BT market position by segment Average market shares based on order intake 2008-10 Segments 2008-10 Bombardier relevant market* Light rail vehicles #1 Metro cars #3 19% Commuter trains #1 Other Regional trains #1 • AnsaldoBreda • Hyundai Rotem VHS, HS & In
Slide 15: The fundamentals of the rail industry are positive
The fundamentals of the rail industry are positive Accessible market by segment (for calendar years) (in billions of dollars) 147.6 2.3% 125.5 17.9 3.2% 14.4 28.5 Rail Control 1.0% and Systems 26.7 Infrastructure 3.4% 45.8 36.2 Services 2.0% 48.2 55.4 Rolling Stock 2007-2009 Actual 2015-16 Outlook S
Slide 16: 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 (Orders and revenues in billions of dollars) 1.8 1.5 1.0 1.0 1.6 16 14.3 14 Order intake Revenues 11.8 12 11.3 10 9.8 9.8 9.6 10.0 9.1 7.8 8 6.6 6 4 2 0 F2007 F2008 F2009 F2010 F2011 Record order
Slide 17: A record order intake in 2010, with contracts won across product lines
A record order intake in 2010, with contracts won across product lines and geographies OMNE ain O TWINDEXX l tr Intercity train V300ZEFIRO a Region ce Switzerland VHS train Fra n Italy INNOVIA Monora Saudi A il rabia XITY FLE m Tra a d Cana FLE XIT Tram Y deck Aust Double s ralia coache MONTREAL INN
Slide 18: 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 19: Transportation – Well positioned in an attractive market
Transportation – Well positioned in an attractive market Overall market continues to grow Long-term trends such as urbanization, cost of congestion, price of energy, and aging fleets, favour rail Bombardier Transportation is well-positioned: Broad and innovative product portfolio Market leader in ni
Slide 20: Transportation – The road to 8% EBIT
Transportation – The road to 8% EBIT EBIT margins - Transportation Fiscal years 2007-2011, Calendar 2013 Goal 6% Goal 8% Before special items EBIT EBIT* achieved 6.6% 6.2% 5.5% 4.5% 4.0% FY2007 FY2008 FY2009 FY2010 FY2011 C2013 We will reach our goal by: Focus on flawless execution Leverage our proj
Slide 21: Agenda
Agenda 1 Overview 2 Transportation 3 Aerospace 4 Financials
Slide 22: 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 2011 Other (1) 13% Aircraft Services(2) 18% Business Aircraft 44% Commercial Aircraft 25% Total Revenues LTM* = $9,193 million (1) Oth
Slide 23: 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 LEARJET Family Family Learjet 40 XR Learjet 45 XR Learjet 60 XR Learjet 85 CHALLENGER CHALLENGER Family Family Challenger 300 Challenger 605 Challenger 800 Series GLOBAL GLOBAL Family Family Global 5000 Glob
Slide 24: Bombardier is well-positioned in the business jet market
Bombardier is well-positioned in the business jet market with product line covering 94% of revenues Market LARGE Shares VERY LIGHT JETS MEDIUM JETS LARGE JETS CORPORATE CY 2010* LIGHT JETS L40XR L45XR L60XR L85 CL-300 CL-605 CL-850 G5000 GEX-XRS Bombardier 32% Global Vision G8000 G7000 Mustang CJ3 X
Slide 25: Orders and backlog – Business aircraft
Orders and backlog – Business aircraft Net orders, deliveries and book-to-bill Business aircraft (FY06 – FY11) 1.9 Net orders Deliveries 452 Book-to-bill 1.3 1.1 1.1 Approximately 150 274 0.7 business aircraft to 232 251 235 219 212 be delivered in the 197 176 143 11-month year 107 C2011*. -85 FY06
Slide 26: Commercial Aircraft portfolio aligned with market trends
Bombardier’s Commercial Aircraft portfolio is aligned with current market trends towards environmentally friendly aircraft Q-SERIES Q-SERIES Turboprop Turboprop Q400 NextGen CRJ CRJ NextGen NextGen Regional Regional jets jets CRJ700 NextGen CRJ900 NextGen CRJ1000 NextGen CSERIES CSERIES Mainline Mai
Slide 27: 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 20- t
Slide 28: CSeries – A New Family Optimized for the Lower End of the Market
CSeries – A New Family Optimized for the Lower End of the 100 to 149-seat Market Segment Is Long Overdue CRJ200 CRJ700 CS100 The Only Design 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 29: CSeries – A Game Changer in its Class
CSeries – A Game Changer in its Class 133 firm orders and 119 options from seven customers to date* Family of Aircraft with Full Operational Commonality Unmatched Reduction in Environmental Footprint Total Life Cycle Cost Improvement 15% Better Cash Operating Costs – 20% Fuel Burn Advantage Widebody
Slide 30: CSeries Aircraft Program
CSeries Aircraft Program Executing according to plan Technologies Selection and Program Launched At 2008 Farnborough Airshow Finalizing Conceptual Design Phase And Start 2009 Definition Of System Interfaces Joint Definition Phase / Detail Design Phase 2010 Technologies Demonstrators and Facilities C
Slide 31: CSeries – Orders
CSeries – Orders We are tracking – Right where we should be CUMULATIVE ORDER HISTORY BY MONTH LEADING UP TO ORIGINAL EIS* 7 Years 6 Years 5 Years 4 Years 3 Years 2 Years 1 Year 1000 Aircraft Launch EIS 900 CSeries July 2008 Dec. 2013 800 A320 Family March 1982 March 1988 700 737NG Nov. 1993 Dec. 199
Slide 32: Orders and backlog – Commercial aircraft
Orders and backlog – Commercial aircraft Net orders, deliveries and book-to-bill Commercial aircraft (FY06 – FY11) Net orders 1.9 Deliveries 238 Book-to-bill 1.0 0.8 1.0 0.6 0.7 We expect deliveries for commercial aircraft to 138 128 121 112 114 110 be approximately 90 87 88 93 97 81 units for the 1
Slide 33: Bombardier Aerospace is investing significant amounts in new product development
Bombardier Aerospace is investing significant amounts in new product development Investment in CAPEX (in millions of dollars) 956 New product development: Global Vision flight deck 611 Learjet 85 426 CSeries 286 Global 7000/8000 217 167 FY06 FY07 FY08 FY09 FY10 FY11 Capital expenditures, including s
Slide 34: Aerospace – Outlook
Aerospace – Outlook What we expect * Approximately 150 business jet deliveries in the 11-month period ending December 31, 2011 Approximately 90 commercial aircraft deliveries in the 11-month period ending December 31, 2011 EBIT margin under IFRS for the 11-month period ending December 31, 2011 shoul
Slide 35: Aerospace – The road to 10% EBIT
Aerospace – The road to 10% EBIT EBIT margins - Aerospace Goal 8% Fiscal years 2007-2011, Calendar 2013 EBIT achieved Goal 10% EBIT* 9.0% 5.8% 5.1% 5.2% 3.9% FY2007 FY2008 FY2009 FY2010 FY2011 C2013 We will reach our goal by: Improved volumes in business, commercial aircraft and services Continued i
Slide 36: Agenda
Agenda 1 Overview 2 Transportation 3 Aerospace 4 Financials
Slide 37: We are proactively managing our liquidity
We are proactively managing our liquidity Short-term capital resources (as at January 31 - in billions of dollars) 4.7 0.5 4.0 3.9 3.6 3.5 0.5 0.8 2.6 4.2 3.4 3.2 2007 2008 2009 2010 2011 July 31 2011 Cash and cash equivalents Available credit facility 37
Slide 38: Essentially debt repayment-free until 2016
Essentially debt repayment-free until 2016 Debt Maturity Profile (as of January 31, 2011 - in millions of dollars) Debt Repurchased Weighted average maturity: 8.9 years New Debt Issued Debt Unchanged by the Liability Exercises 723 1,077 1,070 940 850 399 650 400 151 162 2011 2012 2013 2014 2015 2016
Slide 39: Segmented information – Q2 results – Aerospace
Segmented information – Q2 results – Aerospace (In millions of U.S. dollars) For the three-month periods ended July 31 2011 % 2010 % Revenues Manufacturing 1,532 1,398 Services 408 398 Other 145 136 Total revenues 2,085 1,932 EBITDA 149 7.1 166 8.6 Amortization 44 65 EBIT 105 5.0 101 5.2 39
Slide 40: Segmented information – Q2 results – Transportation
Segmented information – Q2 results – Transportation (In millions of U.S. dollars) For the three-month periods ended July 31 2011 % 2010 % Revenues Rolling stock 1,958 1,467 Services 331 300 System and signalling 373 346 Total revenues 2,662 2,113 EBITDA 225 8.5 178 8.4 Amortization 34 30 EBIT 191 7.
Slide 41: Financial results overview
Financial results overview (In millions of U.S. dollars, except For the three-month periods ended July 31 per share amounts) 2011 % 2010 % Revenues 4,747 4,045 EBIT 296 6.2 249 6.2 Financing expense, net 35 66 EBT 261 183 Income taxes 50 45 Net income 211 138 Diluted EPS (in dollars) 0.12 0.07 41
Slide 42: Free cash flow
Free cash flow (In millions of U.S. dollars) For the three months For the 12 months ended July 31, 2011 ended July 31, 2011 Aerospace Cash flows from operating (106) 1,079 activities Net additions to PPE & intangible assets (342) (1,142) Total Aerospace (448) (63) Transportation (473) 256 Interest a
Slide 43: Conclusion – We have what it takes to ensure profitable growth
Conclusion – We have what it takes to ensure profitable growth at Bombardier CSeries program New business aircraft programs Transportation geographic expansion Transportation margin improvement Business aircraft recovery Increase aftermarkets sales penetration 50-seat aircraft replacement Major stra
Slide 44: Today, the success story continues … CSeries
Today, the success story continues … CSeries 44
Slide 45: Today, the success story continues … Zefiro
Today, the success story continues … Zefiro 45
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