Bombardier Inc. Class A · TSX:BBD.A

Bombardier Inc. Class A — EBACE 2011

30 slides from Bombardier Inc. Class A's conference presentation, May 18, 2011

  1. Slide 1: 2011 Business Aircraft Market Forecast and Program Update

    Bombardier Aerospace 2011 Business Aircraft Market Forecast and Program Update Rod Williams Vice-President – Marketing Business Aircraft EBACE 18 May 2011 1

  2. 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”, the negative of thes

  3. Slide 3: Agenda

    Agenda ƒ Current Market Environment ƒ Business Aircraft Market Forecast (2011-2030) ƒ Program Update 3

  4. Slide 4: Agenda: Current Market Environment

    Agenda ƒ Current Market Environment ƒ Business Aircraft Market Forecast (2011-2030) ƒ Program Update 4

  5. Slide 5: 2010 industry deliveries were down slightly from 2009 and down 43% from peak

    2010 industry deliveries were down slightly from 2009 and down 43% from the most recent peak TOTAL INDUSTRY DELIVERIES Units, 2001-2010 927 841 - 43% 775 666 642 574 518 528 505 - 8% 404 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: GAMA, excluding very light jets and large corporate air

  6. Slide 6: Light deliveries depressed, Medium stabilizing, Large best year so far

    While Light deliveries were still depressed, with Medium stabilizing, 2010 was the best year (so far) for Large deliveries LIGHT Category Deliveries MEDIUM Category Deliveries LARGE Category Deliveries Units, 2006-2010 Units, 2006-2010 Units, 2006-2010 -61% 501 467 436 -35% 306 278 238 257 +13% 212

  7. Slide 7: Industry net orders back to positive during 2010

    Industry net orders back to positive during 2010 TOTAL INDUSTRY NET ORDERS Units, 2001-2010 2000 1800 1600 1400 1200 1000 800 600 400 200 0 -200 -400 -600 -800 -1000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Bombardier estimates based on OEM disclosures, excluding very light jets and

  8. Slide 8: International markets are the source of most orders

    International markets are the source of most orders BUSINESS JET INDUSTRY GROSS ORDERS Units, % of world total, 2001-2010 1% 0% 3% 3% 1% 5% 6% 4% 6% 5% 7% 8% 1% 2% 2% 1% Asia Pacific 7% 2% 2% 1% 1% 2% 2% 2% 2% 0% 1% 2% 2% 2% 4% 1% 2% 8% 4% 8% 9% 3% 11% 7% 7% 10% 9% 6% 3% 1% India 5% 4% 2% 4% 3% 3% 4

  9. Slide 9: OEMs backlog reduced 21% from 2009 to 2010

    OEMs1 backlog reduced 21% from 2009 to 2010, most impact in light and medium category TOTAL INDUSTRY BACKLOG TOTAL INDUSTRY BACKLOG BY CATEGORY $US B, 2010 BCA list prices, 2009-2010 at year end $US B, 2010 BCA list prices, as of Dec 31, 2010 $39.5B $49.7 - 21% Light $39.5 $7.5 Medium $6.4 Large $25

  10. Slide 10: Bombardier Business Aircraft is the industry leader in deliveries and revenues

    Bombardier Business Aircraft is the industry leader in terms of deliveries and revenues Delivery Market Share Revenue Market Share (%) (%) 100% 3% 3% 4% 4% 3% 100% 4% 4% 5% 3% 4% 7% 5% 9% 8% 7% 8% 8% 6% 17% 15% 13% 14% 14% 12% 6% 11% 17% 17% 17% 17% 75% 16% 75% 22% 26% 32% 31% 20% 31% 31% 11% 12% 13

  11. Slide 11: The world economy continues to recover

    The world economy continues to recover WORLD REAL GDP1 GROWTH World Average 3.9% %, 2010 < 0% 0 to 2% 2 to 4% 4 to 6% > 6% Source: IHS Global Insight, February 2011 Note: 1 GDP = Gross Domestic Product 11

  12. Slide 12: Business conditions continue to improve

    Business conditions continue to improve European Utilization is increasing Pre-owned inventory levels are falling EUROPEAN BUSINESS JET UTILIZATION PRE-OWNED INVENTORY Thousands of Departures and Landings, 2008-2011/Q1 % of fleet, 2008-2011 Q1 Departures and Landings ('000) Departures and Landings G

  13. Slide 13: Agenda: Business Aircraft Market Forecast

    Agenda ƒ Current Market Environment ƒ Business Aircraft Market Forecast (2011-2030) ƒ Program Update 13

  14. Slide 14: Long term business aircraft market drivers remain solid

    Long term business aircraft market drivers remain solid 20-Year Outlook Market Driver Description Outlook The wealth of our customer base is highly dependent on real GDP, which is Wealth Creation forecast to grow worldwide at an average rate of 3.4% over the next 20 years Globalization of Business a

  15. Slide 15: Our market forecast is based on regional penetration rates

    Our market forecast is based on regional penetration rates PENETRATION RATES BY REGION Fleet per Capita vs. GDP1 per Capita, 1960-2010 10000 1st driving NORTH AMERICA 1st driving NORTH AMERICA Average force: GDP force: GDP Fleet per 100 Million Population (Log Scale) growth growth Averagepath growth

  16. Slide 16: Business jet penetration will continue worldwide

    Business jet penetration will continue worldwide WORLD BUSINESS JET PENETRATION FORECAST Fleet per capita vs. GDP1 per capita, Actual 1960-2010, Forecast 2011-2030 1000 Fleet per 100 Million Population (Log Scale) 100 20-year CAGR2 = 3.8% 10 20-year fleet per million population = from 260 to 460 air

  17. Slide 17: 24,000 deliveries forecast over the next 20 years

    24,000 deliveries forecast over the next 20 years BUSINESS AIRCRAFT INDUSTRY DELIVERIES Units, Actual 1991-2010, Forecast 2011-2030 1991-2000 2001-2010 2011-2020 2021-2030 3,600 6,400 10,000 14,000 1,500 Forecast 1,250 1,000 2008 2014 750 500 250 0 1995 2000 2005 2010 2015 2020 2025 2030 Sources: GA

  18. Slide 18: 24,000 deliveries will be worth $626 billion over 20 years

    24,000 deliveries will be worth $626 billion over 20 years INDUSTRY DELIVERIES BY CATEGORY Units Value INDUSTRY REVENUES BY CATEGORY Units, Forecast 2011-2030 $US billion, Constant 2010, Forecast 2011-2030 Total 20 Yrs 1,500 40 24,000 $626B Large 35 5,250 1,250 $260B 30 1,000 25 7,750 750 Medium 20

  19. Slide 19: North America, Europe and China will be largest markets

    North America, Europe and China will be largest markets for business jet deliveries Total World 2011-2020 10,000 2021-2030 14,000 Source: Bombardier forecast model 19

  20. Slide 20: Fleet forecast to grow to 30,900 by 2030, CAGR of 3.8%

    Fleet forecast to grow to 30,900 by 2030, CAGR1 of 3.8% WORLD FLEET EVOLUTION FORECAST Fleet, Deliveries, Retirements; 2010-2030 4,700 14,000 3,100 10,000 30,900 21,600 14,700 Fleet 2010 Deliveries Retirements Fleet 2020 Deliveries Retirements Fleet 2030 Sources: Ascend, Bombardier forecast. Exclude

  21. Slide 21: Agenda: Program Update

    Agenda ƒ Current Market Environment ƒ Business Aircraft Market Forecast (2011-2030) ƒ Program Update 21

  22. Slide 22: We have the industry's leading product portfolio

    We have the industry’s leading product portfolio LEARJET CHALLENGER GLOBAL More than 3,700 BBA1 aircraft are in service worldwide, BBA fleet has accumulated more than 26 million flight hours Note: 1 BBA = Bombardier Business Aircraft 22

  23. Slide 23: With 12 programs, Bombardier has the strongest product portfolio

    With 12 programs, Bombardier has the industry’s strongest product portfolio LEARJET 40 XR LEARJET 45 XR LEARJET 60 XR LEARJET 85 CHALLENGER 300 CHALLENGER 605 CHALLENGER 850 CHALLENGER 870 GLOBAL 5000 GLOBAL 6000 GLOBAL 7000 GLOBAL 8000 23

  24. Slide 24: Bombardier has remained committed to investing in its future despite the downturn

    Bombardier has remained committed to investing in its future despite the downturn Expenditures on product development initiatives Recently launched programs1 Global 8000 $US M Global 7000 1,000 Global Vision R&D expenses 928 46 Learjet 85 Program change and engineering Program tooling additions 101

  25. Slide 25: We are investing in key growth segments

    We are investing in key growth segments to maintain and grow our leadership position LEARJET 85 GLOBAL VISION GLOBAL 7000 & 8000 25

  26. Slide 26: Learjet 85 – Program Status

    Learjet 85 – Program Status Wichita and Belfast factories capacity increase Successfully exited aircraft level Critical Design underway. Mexico factory built complete. Review (CDR). More than 6000 drawings released. Commissioning of 44 test rigs world wide Composite and composite tooling manufacturi

  27. Slide 27: Global Vision – Program Status

    Global Vision – Program Status Rockwell Collins obtained all FAA TSO’s for the Pro Flight testing with Basic Certification Load Line Vision suite in April ’11. complete (over 600 flight hours accumulated). Five production aircraft inducted to Completion in Vision aircraft in full production in Toron

  28. Slide 28: Global 7000/8000 – Program Status

    Global 7000/8000 – Program Status Program was launched during NBAA 2010 with a Wind tunnel testing is underway very positive market response. Three focus groups have been initiated to Several major suppliers have been selected. incorporate our customers’ feedback. Maintenance Cabin Experience Operat

  29. Slide 29: Summary

    Summary ƒ This year’s edition of the 20-year market forecast highlights our positive outlook regarding the timeline and the magnitude of the business jet industry’s comeback: ƒ 10,000 deliveries over 10 years; 24,000 deliveries over 20 years ƒ Deliveries to beat the prior peak year (2008) by 2014 ƒ

  30. Slide 30: Thank You! Questions?

    Bombardier Aerospace 2011 Business Aircraft Market Forecast and Product Briefing Thank You! Questions? EBACE 18 May 2011 30

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