Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — UBS Transportation Conference 2008
18 slides from Bombardier Inc. Class A's conference presentation, Sep 16, 2008
Slide 1: Bombardier Transportation @ UBS Transportation Conference
Bombardier Transportation @ UBS Transportation Conference André Navarri President Bombardier Transportation London, September 16, 2008
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “plan”, “foresee”, “believe” or “continue” or the negatives of t
Slide 3: Agenda
Agenda New Organization – A streamlined organization put in place to 1 capture new market opportunities © Bombardier Inc. or its subsidiaries. All rights reserved. Rail Market – Leadership confirmed in a growing market thanks to 2 our customer orientation and innovative products BT Financials – Soli
Slide 4: New streamlined organization with 6 Divisions and 10 Functions
Since July 2008, a new streamlined organization is in place structured around 6 Divisions and 10 Functions Bombardier Transportation A. Navarri Passengers © Bombardier Inc. or its subsidiaries. All rights reserved. S. Rambaud-Measson Locomotives & Equipment Finance Contracts & Legal, IPR, Bid Approv
Slide 5: Agenda
Agenda New Organization – A streamlined organization put in place to 1 capture new market opportunities © Bombardier Inc. or its subsidiaries. All rights reserved. Rail Market – Leadership confirmed in a growing market thanks to 2 our customer orientation and innovative products BT Financials – Soli
Slide 6: Market fundamentals are rapidly evolving
Market fundamentals are rapidly evolving • Increasing demand by emerging economies and limited natural resources are driving the oil price to record levels • Rail transport is less impacted than road and air Oil scarcity and energy price • Cost of transport is inducing change in behavior towards che
Slide 7: Railway technology market expected to grow 1.8 to 4.8% per annum
The market for railway technology is on a high level and is expected to grow between 1.8 and 4.8% per annum BT relevant1) market (billion USD, CAGR) Optimistic scenario will Market growth scenarios 2005-07 to 2008-10 depend on timely realization of planned tenders © Bombardier Inc. or its subsidiari
Slide 8: Core markets – strong growth in Europe and North America
Core markets – strong market growth in Europe and good momentum in North America Europe – The European market is at a record level and will continue to grow – Rail moves up the political agenda © Bombardier Inc. or its subsidiaries. All rights reserved. – High Speed (HS) and Very High Speed (VHS)
Slide 9: Emerging markets – broad-based growth in RIC countries
Emerging markets – broad-based growth in RIC countries and come-back in other new markets Russia – Rail industry is declared a national priority – Investment in locomotives is the first priority to move natural resources and passengers rapidly across the country – Numerous opportunities in passeng
Slide 10: Confirmed market leadership of the worldwide rail technology market
We have confirmed our market leadership of the worldwide rail technology market Average market shares based on order intake 2005-2007 Bombardier relevant market1) Segment 2005-07 © Bombardier Inc. or its subsidiaries. All rights reserved. E-Locomotives #1 Commuter #1 23% Regional #1 Others • Ansaldo
Slide 11: Success based on customer orientation and innovation
Our success is based on customer orientation and innovation We have the right products for operators around the world – Our trains are designed for flexibility and modularity, responding to customers’ needs (e.g. TALENT 2, ZEFIRO, AGC, SPACIUM) – Our trains provide very high transport capacity © B
Slide 12: Revenue structure by region and product segment
Our revenue structure reflects the market in terms of geographical coverage and product segments Revenues by region F2008 Revenues by segment F2008 © Bombardier Inc. or its subsidiaries. All rights reserved. Other System & Asia / Signaling Pacific 11% 18% North 3% America 12% 7.8 BUSD 7.8 BUSD Rolli
Slide 13: Agenda
Agenda New Organization – A streamlined organization put in place to 1 capture new market opportunities © Bombardier Inc. or its subsidiaries. All rights reserved. Rail Market – Leadership confirmed in a growing market thanks to 2 our customer orientation and innovative products BT Financials – Soli
Slide 14: We delivered what we said we would
We delivered what we said we would Record backlog and expanded market leadership – Highest backlog in the industry with 4 years of sales – Two years in a row of order intake over 11 BUSD – Major contracts across all Divisions and regions © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 15: We continue to deliver on our roadmap to 6%
We continue to deliver on our roadmap to 6% Overview of key financials (USD) Full year Full year Full year Full year H1 year-over- F2005 F2006 F2007 F2008 F2009 year3) evolution © Bombardier Inc. or its subsidiaries. All rights reserved. New Orders (Billions) 4.4 7.3 11.8 11.3 4.5 +5% Revenues (Mill
Slide 16: Main drivers of our business plan to reach 6%
Main drivers of our business plan to reach 6% Initiatives Current focus Procurement: Work jointly with suppliers to strongly improve CODE30+ performance, especially cost and quality © Bombardier Inc. or its subsidiaries. All rights reserved. Operations: Bring all plants to world class standard BOS P
Slide 17: Actions in place to mitigate risks and realize opportunities
Actions are in place to mitigate risks and realize opportunities Potential Risks Opportunities Mitigate raw material price Further leverage our footprint in exposure emerging markets © Bombardier Inc. or its subsidiaries. All rights reserved. Minimize impact of legacy projects Continue to de
Slide 18: Caution regarding non-GAAP earnings measures
CAUTION REGARDING NON-GAAP EARNINGS MEASURES © Bombardier Inc. or its subsidiaries. All rights reserved. This presentation is based on reported earnings in accordance with Canadian generally accepted accounting principles (GAAP). It is also based on EBIT, EPS from continuing operations before specia