Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Investor Day (February 2022)
51 slides from Bombardier Inc. Class A's investor day presentation, Feb 24, 2022
Slide 1: Bombardier Investor Day: Executing on our commitments
~—SSRRERREE _N = fe ———_ Bombardier Investor Day Executing on our commitments February 24, 2022 BOMBARDIER
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 our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contributi
Slide 3: Caution Regarding Non-GAAP and Other Financial Measures
Caution Regarding Non-GAAP and Other Financial Measures Non-GAAP and other financial measures are measures mainly derived from the consolidated financial statements but are not standardized financial measures under the financial reporting framework used to prepare our financial statements. Therefore
Slide 4: PRIVATE AND CONFIDENTIAL
4 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 5: Bombardier Overview & Strategic Outlook
| Bombardier Overview & Strategic Outlook 2. Aftermarket Strategy A genda 3 Financial Overview
Slide 6: Executing on our 2021 priorities and 2025 objectives
ixecuting on our 2021 priorities and 2025 objectives 2021 KEY AREAS OF FOCUS OBJECTIVES @ Aircraft Manufacturing & Other’ @ Aftermarket REVENUE DELEVERAGING BALANCE SHEET MATURING THE GLOBAL 7500 CONTRIBUTION AFTERMARKET GROWTH F tDAt FCF? NET LEVERAGE*4 ~$1.5B : ' >$500M ~3x INCREASING PRODUCTIVITY
Slide 7: PRIVATE AND CONFIDENTIAL
7 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 8: Delivering meaningful unit cost reduction on the Global 7500
Delivering meaningful unit cost reduction on the Global 7500 GLOBAL 7500 UNIT COST ~-40% MATERIAL LABOR AIRCRAFT #1 AIRCRAFT #50 AIRCRAFT #100+ Not: Rafer to our disconure on forward ooking statements atthe begloning of ths presentation. BOMBARDIER
Slide 9: On track with our plan to capture 50% of our own aftermarket by 2025
On track with our plan to capture 50% of our own aftermarket by 2025 TOTAL SIZE OF BOMBARDIER AFTERMARKET [$B, 2020-2021, 2025F] Third Party Capture @ Bombardier Capture Market CAGR: 5% $4.0 $3.2 Bombardier $2.0 CAGR: — 12% | - $2.00 (50%) 2021 2025F Note: Refer ts ou esclsure on frwardlockng statem
Slide 10: Increasing productivity and cost reduction: clear path toward our $400M objective
Increasing productivity and cost reduction: clear path toward our $400M objective ANNUAL EBITDA’ COST SAVINGS CADENCE ($M, 2021-2023F] $400 $250 s135sV $35 $100 2021 2022F 2023F @ Planned Savings @ Overachievement 1, Adjusted EBITDA is a non-GAAP financial measure. For further information on non-GAA
Slide 11: PRIVATE AND CONFIDENTIAL
11 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 12: Industry leading portfolio with best book-to-bill since 2013
Industry leading portfolio with best book-to-bill since 2013 GLOBAL 7500 GLOBAL 6500 GLOBAL 5500 ae CHALLENGER 650 see se = Z = CHALLENGER 3500 == EE 7 INDUSTRY FLAGSHIP ACHIEVED 1000TH DELIVERY OF THE GLOBAL FAMILY MOST DELIVERED BUSINESS JET FAMILY OF ALL TIME MOST DELIVERED SUPER MID-SIZE AIRCRAF
Slide 13: PRIVATE AND CONFIDENTIAL
13 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 14: PRIVATE AND CONFIDENTIAL
14 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 15: PRIVATE AND CONFIDENTIAL
15 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 16: Strong backlog balanced across entire product portfolio
Strong backlog balanced across entire product portfolio BOMBARDIER BACKLOG" ($B, 2020-2021] $15 —— increase $12.2 $10.7 meee —— | 2020 2021 1. Includes order backlog for both manufacturing and services. Note: Refer to our disclosure on forward-looking statements at the beginning of this presentation
Slide 17: Bombardier Deliveries by customer type and geography
BOMBARDIER DELIVERIES BY CUSTOMER TYPE [%, 2021] 12% GOVERNMENT/MISSIONIZED 14% PUBLIC CORPORATIONS. se 62% HIGH NET WORTH INDIVIDUALS AND PRIVATE 22% FLEET CUSTOMERS < CORPORATIONS BOMBARDIER DELIVERIES BY GEOGRAPHICAL LOCATION [%, 2021] 4% MIDDLE EAST & AFRICA 5% GREATER CHINA a ype, 2% LATIN AMER
Slide 18: Growing our market share in a growing market
Growing our market share in a growing market BOMBARDIER DELIVERIES (UNITS, 2020 - 2023F] +15-20% 120 >120 114 GLOBAL & CHALLENGER LEARJET 2020 2021 2022F 2023F Source: Bombardier disclosures. Note: Refer to our disclosure on forward-looking statements at the beginning of this presentation. MARKET DR
Slide 19: Building a more predictable and profitable business
Building a more predictable and profitable business 2020 2021 2022 GUIDANCE 2025 OBJECTIVES @ Aircraft Manufacturing & Other’ @ Aftermarket >5% CAGR 2020 vs 2025 REVENUE $200M $640M ~50% CAGR 2020 vs 2025 <5% 10.5% n/a ~20% FCF? EBITDA, EBITDA’ (USAGE) MARGIN‘ $(1.9)B $100M >$50M >$500M CASH FLOW PO
Slide 20: Bombardier Overview & Strategic Outlook Agenda
1 Bombardier Overview & Strategic Outlook 2 Aftermarket Strategy Agenda 3° Financial Overview
Slide 21: PRIVATE AND CONFIDENTIAL
21 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 22: PRIVATE AND CONFIDENTIAL
22 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 23: Our plan is to capture 50% of our own aftermarket by 2025
Our plan is to capture 50% of our own aftermarket by 2025 TOTAL SIZE OF BOMBARDIER AFTERMARKET REVENUES KEY DEMAND DRIVERS ($B, 2020-2021, 2025F] ‘- Third Party Capture @ Bombardier Capture FLIGHT HOURS Market CAGR: ace $4.0 4 $3.2 as $2.8 aot Bombardier ei FLEET GROWTH s $0.99 $1.24 (35%) (39%) 202
Slide 24: Bombardier fleet flight hours have now fully recovered
Bombardier fleet flight hours have now fully recovered BOMBARDIER FLIGHT UTILIZATION’ [MONTHLY FLIGHT HOURS, 2020-2021] 120K 100K PRE-PANDEMIC AVERAGE” 80K 60K 40K 20K AT 75% OF 2019 AT 100% OF 2019 1. Represents flying hours for most active Bombardier fleet excluding very old aircraft (~1,600 aircr
Slide 25: Fleet customers' demand will fuel flight hours growth
Fleet customers’ demand will fuel flight hours growth FLEXJCT f “In 2021, we are seeing demand on days that historically never saw huge demand [..] | have not seen anything like the current demand in 20+ years [...] We are working closely with our OEM partners to bring on new aircraft”! D.J. Hanlon
Slide 26: Bombardier's extensive fleet size will continue to direct business towards our Aftermarket
Bombardier's extensive fleet size will continue to direct business towards our Aftermarket activities BOMBARDIER FLEET [NUMBER OF AIRCRAFT AS OF, DECEMBER 31, 2021] 3% GREATER CHINA GLOBAL 4% REST OF ASIA & OCEANIA 5% MIDDLE EAST & AFRICA 12% LATIN AMERICA ~5,000 AIRCRAFT 13% EUROPE & CIS CHALLENGER
Slide 27: PRIVATE AND CONFIDENTIAL
27 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 28: Size of bubble = hours worked on Bombardier aircraft
[SIZE OF BUBBLE = # HOURS WORKED ON BOMBARDIER AIRCRAFT IN 2021] Bombardier @ Rest of the market BOMBARDIER
Slide 29: Our competitive advantage
Our competitive advar /7S\\ Anetwork spanning across can the globe ak A unique ecosystem offering bis peace of mind at A comprehensive portfolio of NE turn-key solutions
Slide 30: A global strategy to Bring Our Jets Home
A global strategy to Bring Our Jets Home North America Europe _ Asia a Wek e va ° m3 Sd » nee, J all * . ‘ A a * @ 2 ¢ a ou A . “ve A me ania AUTHORIZED TRAINING powers ACER a +1M Ds alee AIRCRAFT BEING GROSS SQ, FTTO @ Garrreane WORKED ON DAILY IN BE ADDED TO THE OUR AFTERMARKET 7 } NETWORK BY THE
Slide 31: BOMBARDIER
BOMBARDIER ~
Slide 32: Expansion update: Melbourne Service Center - 2022
Expansion update: Melbourne Service Center - 2022 32
Slide 33: Expansion update: Biggin Hill Service Center - 2022
Expansion update: Biggin Hill Service Center - 2022 _BOMBARDIER ~ po.
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Slide 35: PRIVATE AND CONFIDENTIAL
35 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 36: PRIVATE AND CONFIDENTIAL
36 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 37: Expanding into adjacent markets: Certified Pre-Owned Launch
ixpanding into adjacent markets: Certified Pre-Owned Launch a8 NEW AIRCRAFT SALE 6 Ve @) AIRCRAFT RESALE OR CUSTOMER WARRANTY & LATE LIFE DISPOSAL LIFECYCLE MAINTENANCE SERVICES (2) neck Qos ae UPGRADES & AIRCRAFT MODIFICATIONS MANAGEMENT & Ss, HANDLING Note: Refer to our disclosure on forward-looki
Slide 38: PRIVATE AND CONFIDENTIAL
38 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 39: PRIVATE AND CONFIDENTIAL
39 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 40: PRIVATE AND CONFIDENTIAL
40 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 41: Results and objectives 2021 vs 2025
2021 2025 RESULTS OBJECTIVES $6.1B ~$7.5B $0.6B ~$1.5B 10.5% EBITDA MARGIN? ~20% EBITDA MARGIN? 220% YOY $100M >$500M <8x ~3x >$225M IN INTEREST? >$250M INTERESTS COST COST SAVINGS SAVINGS BY 2025, MOSTLY ACHIEVED IN 2021 ‘af, specialized aircraft solutions, and pre-owned aire BOMBARDIER
Slide 42: Our revenues will grow through recovery of new aircraft deliveries and aftermarket expansion
Our revenues will grow through recovery of new aircraft deliveries and steady aftermarket expansion through 2025 REVENUE GROWTH [2021 - 2025] ~$0.8B ~$7.5B ~$0.6B : ; S628 |; tC AFTERMARKET AIRCRAFT MANUFACTURING $4.9B & OTHER’ 80% of revenues 2021 AIRCRAFT AFTERMARKET 2025 MANUFACTURING EXPANSION O
Slide 43: PRIVATE AND CONFIDENTIAL
43 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 44: PRIVATE AND CONFIDENTIAL
44 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 45: PRIVATE AND CONFIDENTIAL
45 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 46: PRIVATE AND CONFIDENTIAL
46 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 47: PRIVATE AND CONFIDENTIAL
47 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 48: PRIVATE AND CONFIDENTIAL
48 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 49: PRIVATE AND CONFIDENTIAL
49 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 50: PRIVATE AND CONFIDENTIAL
50 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 51: PRIVATE AND CONFIDENTIAL
51 PRIVATE AND CONFIDENTIAL. © Bombardier Inc. or its subsidiaries. All rights reserved.