Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Deutsche Bank Finance Conference 2012
48 slides from Bombardier Inc. Class A's conference presentation, Jun 14, 2012
Slide 1: Presentation to Investors
PRESENTATION TO INVESTORS SHIRLEY CHÉNIER SENIOR DIRECTOR June 14, 2012
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 our objectives, guidance, targets, goals, priorities, markets and strategies, financial position, beliefs, prospects, plans, expectations, anticipat
Slide 3: Bombardier – A Global Market Leader
BOMBARDIER – A GLOBAL MARKET LEADER Diversified revenues of $18.3 billion* THIRD LARGEST with customers in more than CIVIL AIRCRAFT 100 countries MANUFACTURER WORLDWIDE Net income of $837 million* (EPS of $0.47), with excellent growth potential GLOBAL A strong backlog of $53.9 billion** LEADER
Slide 4: Operating in Two Broad Industries
OPERATING IN TWO BROAD INDUSTRIES AEROSPACE TRANSPORTATION A world leader in the design, manufacture and support of innovative aviation products for the World leader in the design, manufacture and business, commercial, specialized and support of rail equipment and systems amphibious aircraft markets
Slide 5: Investment Thesis
INVESTMENT THESIS PRODUCTS Investing in leading mobility solutions Well positioned to capture global growth MARKETS opportunities DISCIPLINE Strong financial discipline
Slide 6: 30 Aircraft Programs Launched Since 1989
30 AIRCRAFT PROGRAMS LAUNCHED SINCE 1989 CRJ100/200 (1989) Learjet 31-A (1990) Learjet 60 (1990) Bombardier 415 (1991) Learjet 45 (1992) Q200 (1992) Challenger 604 (1993) Global Express (1993) Q400 (1995) CRJ700 (1997) Challenger 300 (1999) CRJ900 (2000) Global 5000 (2001) Learjet 45 XR (2002) Learj
Slide 7: Investments in New Products Will Drive $8 to $12 Billion of Additional Revenues
INVESTMENTS IN NEW PRODUCTS WILL DRIVE $8 TO $12 BILLION OF ADDITIONAL REVENUES PER YEAR IN AEROSPACE Total market of 7,000 units over 20 years Target to capture 50% of global market share in 100 – 149 seat market $5 to $8 billion of additional annual revenues (including related services) CSer
Slide 8: CSeries Is a Game Changer
CSERIES IS A GAME CHANGER TRIPLE APPEAL VALUE PROPOSITION Environment: At the forefront of technology, e.g. geared 1 turbofan engine – 20% fewer CO2 emissions Airline: Route flexibility and unbeatable economics (20% fuel consumption advantage against in-production aircraft) Communities: Low no
Slide 9: Our Growth Strategy Rests on a Leading Portfolio of Products/Services
OUR GROWTH STRATEGY RESTS ON A LEADING PORTFOLIO OF PRODUCTS/SERVICES BT is responding to changing needs and will continue to lead the rail technology industry by focusing on: Developing innovative & Enabling more integrated Building local capabilities A cost-optimized solutions B networks C & long-
Slide 10: Infrastructure, Urbanization & Mobility, and Budget Constraints Drive Needs
INFRASTRUCTURE, URBANIZATION & MOBILITY, AS A WELL AS BUDGET CONSTRAINTS WILL CONTINUE TO DRIVE THE NEEDS FOR OUR PRODUCTS Maximize use of existing infrastructure TWINDEXX double-deck trains TRAXX AC3 locomotives CITYFLO & CBTC signalling Infrastructure Reduce energy consumption and life Innovative
Slide 11: Regional Integration Driving Need for Seamless Connectivity
REGIONAL INTEGRATION IS DRIVING THE NEED FOR SEAMLESS CONNECTIVITY AND INTEROPERABILITY B ACROSS NETWORKS Enable cross-border operations TRAXX MS F140 locomotives ZEFIRO very high speed train Regional Integration Develop compatible technology INTERFLO 450 signalling system More Integrated Networks D
Slide 12: Governments and Operators Looking to the Private Sector to Improve Rail Efficiency
TO MEET MOBILITY NEEDS, GOVERNMENTS AND C OPERATORS ARE LOOKING TO THE PRIVATE SECTOR TO IMPROVE RAIL EFFICIENCY Localize production Manufacturing of Delhi metro São Paolo assembly in Brazil Create public private partnerships Emerging market investment Gautrain project in South Africa Build local ca
Slide 13: Investment Thesis
INVESTMENT THESIS PRODUCTS Investing in leading mobility solutions Well positioned to capture global MARKETS growth opportunities DISCIPLINE Strong financial discipline
Slide 14: Emerging Markets Expected to Account for Substantial Portion of Aircraft Deliveries
EMERGING MARKETS EXPECTED TO ACCOUNT FOR SUBSTANTIAL PORTION OF AIRCRAFT DELIVERIES Expected commercial and business jet aircraft deliveries 2011 – 2030 Total 37,100 deliveries Bombardier Aerospace Europe (incl. Russia / CIS) North America 7,885 14,460 China 4,670 Middle East 1,605 Latin America Asi
Slide 15: Bombardier Is the Market Leader in the Business Aircraft Market
BOMBARDIER IS THE MARKET LEADER IN THE BUSINESS AIRCRAFT MARKET… Market Shares by Units Delivered Market Shares by Revenues 3% 9% 4% 6% 28% 9% 29% 24% 24% 18% 31% 15% Bombardier Gulfstream Dassault Cessna Hawker Beechcraft Embraer 15 Source: General Aviation Manufacturers Association Q1-2012 Calende
Slide 16: Very Well Positioned in the 40-149 Seat Commercial Aircraft Segment
… AND VERY WELL POSITIONNED IN THE 40-149 SEAT COMMERCIAL AIRCRAFT SEGMENT 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 regional ai
Slide 17: Rail Technology Market Provides Steady and Sustainable Growth Worldwide
RAIL TECHNOLOGY MARKET PROVIDES STEADY AND SUSTAINABLE GROWTH WORLDWIDE Forecasted accessible market by region ² Highlights on some key markets (in billions of dollars) Asia-Pacific Market India and China continue to drive the growth in 107,7 urban ROS, intercity and freight fleets in line with in
Slide 18: BT Continues to Secure Orders Around the World
BT CONTINUES TO SECURE ORDERS AROUND THE WORLD WITH SIGNIFICANT OPPORTUNITIES IN EMERGING MARKETS Across the globe… OMNEO double-deck trains CITYFLO 650 signalling for the SNCF for Sao Paolo Metro line 5 $11B1 (Feb 2010) (Sept 2011) $97M 59 double-deck trains Light Rail Transit system for the Swiss
Slide 19: Bombardier Transportation Global Presence
BOMBARDIER TRANSPORTION GLOBAL PRESENCE 62 production and engineering sites in 25 countries Workforce of 36,200 employees located in 40 countries 19 Customers in more than 60 countries
Slide 20: Localizing Production Facilities in India
LOCALIZING OUR PRODUCTION FACILITIES FURTHERED OUR STRATEGIC COMMITMENT IN INDIA AND ENHANCED OUR LOCAL CAPABILITIES New Delhi Sales, Marketing, Project & Depot offices Kolkata Savli, Gujurat Sales & Marketing offices Railway manufacturing site Vadodara, Gujurat PPC & SW development Center Hyderabad
Slide 21: Investment Thesis
INVESTMENT THESIS PRODUCTS Investing in leading mobility solutions Well positioned to capture global growth MARKETS opportunities DISCIPLINE Strong financial discipline
Slide 22: Stable Revenues Even Through Challenging Environments
STABLE REVENUES EVEN THROUGH CHALLENGING ENVIRONMENTS Consolidated Revenues (in billions of dollars) Canadian GAAP IFRS $19.7 $19.4 $18.3 $17.9 $17.5 $14.9 $9.8 $10.0 $7.8 $9.1 $9.8 $6.6 $9.7 $10.0 $9.4 $8.3 $8.8 $8.6 (1) (2) FY2007 FY2008 FY2009 FY2010 FY2011 CY2011 Aerospace Transportation 1 Fisca
Slide 23: Strong Track Record of Profitability with More Opportunity Going Forward
STRONG TRACK RECORD OF PROFITABILITY WITH MORE OPPORTUNITY GOING FORWARD Aerospace EBIT from continuing operations1 Transportation EBIT from continuing operations1 (in millions of dollars) (in millions of dollars) Canadian GAAP IFRS Canadian GAAP IFRS 9.0% 7.2% 7.2% Financial Overview 6.2% 5.5% 6.3%
Slide 24: Segmented Information
SEGMENTED INFORMATION THREE-MONTH PERIODS ENDED (in millions of dollars) MARCH 31, 2012 APRIL 30, 2011 REVENUES AEROSPACE 1,499 2,188 TRANSPORTATION 2,006 2,473 TOTAL REVENUES 3,505 4,661 EBIT AEROSPACE 91 141 TRANSPORTATION 124 171 TOTAL EBIT 215 312 24
Slide 25: Financial Results Overview
FINANCIAL RESULTS OVERVIEW THREE-MONTH PERIODS ENDED (in millions of dollars, except per share amounts) MARCH 31, 2012 APRIL 30, 2011 REVENUES 3,505 4,661 EBIT 215 312 FINANCING EXPENSE, NET - 36 EBT 215 276 INCOME TAXES 25 56 NET INCOME 190 220 EPS (in dollars) 0.10 0.12 25
Slide 26: Free Cash Flow
FREE CASH FLOW THREE-MONTH PERIODS ENDED (in millions of dollars) MARCH 31, 2012 APRIL 30, 2011 AEROSPACE Cash flows from operating (200) 122 activities Net additions to PPE & (372) (290) intangible assets TOTAL AEROSPACE (572) (168) TRANSPORTATION (100) (168) INTEREST AND TAXES (40) (73) FREE CASH
Slide 27: We Are Proactively Managing Our Liquidity
WE ARE PROACTIVELY MANAGING OUR LIQUIDITY Debt Maturity Profile (notional amount) Short-term Capital Resources (as of March 31, 2012 - in millions of dollars) (as at - in billions of dollars) 4.6 Debt Unchanged by the 4.1 Liability Exercises 0.7 Debt Refinanced with 0.7 0.7 Issuance of New Debt New
Slide 28: We Are Maintaining Our Outlook for 2012
WE ARE MAINTAINING OUR OUTLOOK FOR 2012 Transportation Continue to target an 8% EBIT margin by 2013 Anticipate to generate free cash flow for the year generally in line with profitability Level of new orders expected to translate into a book-to-bill ratio of approximately 1 Aerospace Deliver
Slide 29: Evolution Is All About What's Next
EVOLUTION IS ALL ABOUT WHAT’S NEXT OUR STRATEGIES CREATING BETTER CAPTURING STRENGTHENING WAYS TO MOVE THE GLOBAL GROWTH OUR CUSTOMER- WORLD OPPORTUNITIES FOCUSED Bombardier EXCELLENCE Today INVEST IN LEADING + GROW LOCAL + ACHIEVE FLAWLESS MOBILITY ROOTS IN KEY SOLUTIONS MARKETS EXECUTION Revenues:
Slide 30: Today, the Success Story Continues … CSeries
TODAY, THE SUCCESS STORY CONTINUES … CSeries
Slide 31: Today, the Success Story Continues … Zefiro
TODAY, THE SUCCESS STORY CONTINUES … Zefiro
Slide 32: Questions?
QUESTIONS? the evolution of mobility
Slide 33: Appendix
APPENDIX BOMBARDIER the evolution of mobili
Slide 34: 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 of leadership Global snowmobile transportation position leadership Revenues* $0.7 B $1.0 B $5.6 B $12.4 B $18.3 B ** Major Lohnerwerke MLW Canad
Slide 35: Bombardier – A Truly Global Company
BOMBARDIER – A TRULY GLOBAL COMPANY Employees Revenues Geographic segmentation Geographic segmentation 4% 4% 10% 7% 34% 15% 24% 46% 12% 44% Canada US Europe Canada US Europe Asia-Pacific Other Asia-Pacific Other Total employees*: 70,000 Total revenues**: US$18.3 billion 35 * As of December 31, 2011
Slide 36: Bombardier Aerospace – Balanced Portfolio of Products and Services
BOMBARDIER AEROSPACE - A GLOBAL MARKET LEADER BALANCED PORTFOLIO OF PRODUCTS AND SERVICES AEROSPACE REVENUE BREAKDOWN BY BUSINESS (%) Aerospace revenue – Fiscal year ended December 31, 2011 Other (1) 12% Aircraft Services(2) 18% Business Aircraft 50% Commercial Aircraft 20% Total Revenues = $8,594 m
Slide 37: Business Aircraft Offers the Industry's Most Complete Product Portfolio
BOMBARDIER’S BUSINESS AIRCRAFT OFFERS THE INDUSTRY’S MOST COMPLETE PRODUCT PORTFOLIO LEARJET FAMILY LEARJET 40 XR LEARJET 45 XR LEARJET 60 XR LEARJET 85 CHALLENGER FAMILY CHALLENGER 300 CHALLENGER 605 CHALLENGER 850 CHALLENGER 870 GLOBAL FAMILY GLOBAL 5000 GLOBAL 6000 GLOBAL 7000 GLOBAL 8000 Bombard
Slide 38: Business Aircraft Orders and Deliveries
BUSINESS AIRCRAFT ORDERS AND DELIVERIES Net orders, deliveries and book-to-bill Business aircraft (FY06 – 2011) Canadian GAAP IFRS Net orders Deliveries 1.9 Book-to-bill 452 1.3 1.1 1.1 1.2 274 0.7 232 251 235 219 212 197 191 176 155 163 107 -85 FY06 FY07 FY08 FY09 FY11 2011* FY10 -0.5 * 11-month pe
Slide 39: CSeries – A New Family Optimized for the 100 to 149-Seat Segment
CSERIES – A NEW FAMILY OPTIMIZED FOR THE LOWER END OF THE 100 TO 149-SEAT MARKET SEGMENT IS LONG OVERDUE CRJ200 CS100 The Only Design CRJ700 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 40: Development of the CSeries Is Progressing Well
THE DEVELOPMENT OF THE CSERIES IS PROGRESSING WELL AND WE’RE TRACKING RIGHT WHERE WE SHOULD BE CSERIES FIRM ORDERS AND COMMITMENTS (as of March 1, 2012) 317 CUMULATIVE ORDER HISTORY BY MONTH LEADING UP TO ORIGINAL EIS* 7 Years 6 Years 5 Years 4 Years 3 Years 2 Years 1 Year Publicly announced LOIs 10
Slide 41: Commercial Aircraft Orders and Deliveries
COMMERCIAL AIRCRAFT ORDERS AND DELIVERIES Net orders, deliveries and book-to-bill Commercial aircraft (FY06 – 2011) Net orders Deliveries 1.9 Book-to-bill Canadian GAAP IFRS 238 1.0 0.8 1.0 0.6 0.7 0.7 138 128 121 112 114 110 87 88 93 97 81 78 54 FY06 FY07 FY08 FY09 FY10 FY11 2011* * 11-month period
Slide 42: Aerospace Investing Significant Amounts in New Product Development
BOMBARDIER AEROSPACE IS INVESTING SIGNIFICANT AMOUNTS IN NEW PRODUCT DEVELOPMENT Investment in CAPEX (in millions) $2,000 New product development: $1,320 ¾ Global Vision flight deck $1,008 ¾ Learjet 85 ¾ CSeries ¾ Global 7000/8000 FY11 CY11 Estimate FY12 Capital expenditures, including significant i
Slide 43: Full Range of Products and Solutions to 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
Slide 44: Transportation – Revenues by Product Line and Geographic Region
TRANSPORTATION – REVENUES BY PRODUCT LINE AND GEOGRAPHIC REGION System and Other 15% 7% signaling North America 14% Services 15% Asia-Pacific 15% Rolling stock 70% Europe 64% C2011 C2011 Total Revenues = $9,753 million 44 Note: Revenues are attributed to countries based on the location of the custom
Slide 45: The Fundamentals of the Rail Industry Are Positive
THE FUNDAMENTALS OF THE RAIL INDUSTRY ARE POSITIVE Accessible market by segment (three and two calendar year averages) (in billions of dollars) CAGR: 2.1% 107.7 96.9 19.6 System and Signalling 17.7 40.1 Services 33.8 Rolling Stock 45.4 48.0 2009-2011 Actual 2015-16 Outlook 45 Source: UNIFE 2010 Stud
Slide 46: 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 (for the fiscal years ended - Orders and revenues in billions of dollars) 1.8 1.5 1.0 1.0 1.6 1.0 16 14.3 14 Order intake Revenues 11.8 12 11.3 9.8 9.8 10.0 9.7 9.8 10 9.6 9.1 7.8 8 6.6 6 4 2 0 Ja
Slide 47: 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 l
Slide 48: Transportation – Well Positioned and Making Progress on Road to 8%
TRANSPORTATION – WELL POSITIONED IN AN ATTRACTIVE MARKET AND MAKING GOOD PROGRESS ON ITS ROAD TO 8% Canadian GAAP IFRS 8.0% 7.2% 7.2% 6.2% 5.5% 2.4% Jan. 2008 Jan. 2009 Jan. 2010 Jan. 2011 Dec. 2011 Dec. 2012 Dec. 2013 (Target) Transportation is well positioned in an attractive market: Trends such