Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Investor Presentation (February 2013)
37 slides from Bombardier Inc. Class A's investor presentation, February 2013
Slide 1: Bombardier Aerospace Profile, Strategy and Market
BOMBARDIER AEROSPACE PROFILE, STRATEGY AND MARKET FEBRUARY 2013
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, our market and strategies, financial position, beliefs, prospects, plans, expectations, antici
Slide 3: Agenda
1 OUR PROFILE AGENDA 2 OUR STRATEGY 3 OUR MARKET © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 4: Bombardier Aerospace Is a World Leader in Civil Aircraft Manufacturing
BOMBARDIER AEROSPACE IS A WORLD LEADER IN CIVIL AIRCRAFT MANUFACTURING Bombardier Aerospace (Fiscal year ended December 31, 2012) Revenues: $8.6 billion EBIT before special item(1): $382 million (4.4%) EBIT: $405 million (4.7%) Order backlog(2): $32.9 billion Customers in more than 100 countries Pre
Slide 5: Bombardier Aerospace Is a Truly Global Player
BOMBARDIER AEROSPACE IS A TRULY GLOBAL PLAYER Employees – Geographic Segmentation Revenues – Geographic Segmentation 1% 6% 11% 18% 13% 56% 60% 15% 20% Canada U.S. Europe North America Europe Mexico Other Asia-Pacific Other Total employees(1): 35,500 Total revenues(2): $8.6 billion (1) As of December
Slide 6: We Have a Balanced Portfolio of Products and Services
WE HAVE A BALANCED PORTFOLIO OF PRODUCTS AND SERVICES Aerospace Revenues Breakdown by Business (% of Aerospace revenues – Fiscal year ended December 31, 2012) Other (1) 14% Business Aircraft Aircraft Services(2) 53% 20% Commercial Aircraft 13% Total Revenues = $8.6 billion (1) Other includes primari
Slide 7: We Offer the Industry's Most Comprehensive Business Aircraft Portfolio
WE OFFER THE INDUSTRY’S MOST COMPREHENSIVE BUSINESS AIRCRAFT PORTFOLIO… LEARJET family of aircraft Models: Learjet 70(1), Learjet 75(1), Learjet 60XR and Learjet 85(1) Market category: Light business jets Competitive advantages(2): The Learjet heritage of high performance is upheld by each Learjet p
Slide 8: Broadest Portfolio of Commercial Aircraft in the 20- to 149-Seat Categories
…AND THE BROADEST PORTFOLIO OF COMMERCIAL AIRCRAFT IN THE 20- TO 149-SEAT CATEGORIES Q-SERIES turboprop aircraft Models: Q400 NextGen Market category: 60- to 90-seat turboprops Competitive advantages(1): For short-haul operations, the optimized Q400 NextGen airliner is a fast, fuel-efficient and low
Slide 9: Specialized and Amphibious Aircraft Offer Key Solutions
OUR SPECIALIZED AND AMPHIBIOUS AIRCRAFT OFFER KEY SOLUTIONS FOR SPECIFIC NEEDS Specialized aircraft Models: Various Bombardier business and commercial aircraft models Competitive advantages: Specialized aircraft provide solutions for governments, agencies and specialized organizations worldwide by m
Slide 10: Customer Services and Jet Travel Solutions
OUR CUSTOMER SERVICES AND JET TRAVEL SOLUTIONS PROVIDE HIGH STANDARDS OF CUSTOMER CARE Maintenance and parts services Services portfolio: Spare parts, component repair and overhaul, and maintenance, as well as cost per flight-hour program. Competitive advantages: Customer services offers worldwide s
Slide 11: Customer Services and Jet Travel Solutions: Flexjet
OUR CUSTOMER SERVICES AND JET TRAVEL SOLUTIONS PROVIDE HIGH STANDARDS OF CUSTOMER CARE FLEXJET Services portfolio: Fractional jet ownership, jet card programs, charter brokerage services and whole aircraft ownership and management. Competitive advantages: Flexjet offers a broad choice of aircraft, t
Slide 12: Our CSeries Family of Aircraft Is a Game Changer
OUR CSERIES FAMILY OF AIRCRAFT IS A GAME CHANGER 100% New Aircraft Latest generation of system technology & state-of-the-art aerodynamics Lighter structure due to extensive use of advanced materials Operational flexibility – short field and longer range performance The only aircraft specifically des
Slide 13: CSeries Operating Cost Advantage Will Change Airline Economics
CSERIES – OPERATING COST ADVANTAGE WILL CHANGE AIRLINE ECONOMICS Cash-operating-cost comparison Cost per Seat Better trip cost E190 than smaller A318 E195 regional jets 737-600 A319 CS100 737-700 A319neo A320 CS300 Same seat cost as next A320neo larger single-aisle aircraft Bombardier products Produ
Slide 14: New Learjet 70 and Learjet 75 Business Jets
OUR NEW LEARJET 70 AND LEARJET 75 BUSINESS JETS EMBODY CONNECTIVITY AND INNOVATION Improving upon the legendary Learjet 40/45 aircraft 1 Performance: Reduced weight and fuel consumption, improved take-off field performance Cabin: Completely redesigned cabin with state-of-the-art High Definition (HD)
Slide 15: New Learjet 85 Business Jet
OUR NEW LEARJET 85 BUSINESS JET COMBINES PERFORMANCE, TECHNOLOGY, AND COMFORT The largest and fastest Learjet aircraft yet Legendary Learjet performance(1): 3,000 NM (5,556 km) range, maximum speed of Mach 0.82, maximum altitude of 49,000 ft (14,935 m) Large stand-up cabin with double-club seating S
Slide 16: Global 7000 and Global 8000 Business Aircraft
OUR GLOBAL 7000 AND GLOBAL 8000 BUSINESS AIRCRAFT SET A NEW BENCHMARK Setting new benchmark in global travel 1 The Global 7000 jet is designed for 7,300 NM (13,520 km) range with 10 passengers at Mach 0.85(1) The Global 8000 jet will fly farther than any other business jet, boasting an impressive ra
Slide 17: Agenda
1 OUR PROFILE AGENDA 2 OUR STRATEGY 3 OUR MARKET © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 18: Focused on Execution and Progress in Program Development
WE REMAIN FOCUSED ON EXECUTION AND ON MAKING PROGRESS IN PROGRAM DEVELOPMENT DEVELOP INDUSTRY- EXPAND OUR ACHIEVE FLAWLESS LEADING PRODUCTS INTERNATIONAL PRESENCE EXECUTION 18 OUR STRATEGY © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 19: Clear Priorities to Execute Our Strategy
WE CONCENTRATE ON CLEAR PRIORITIES TO EXECUTE SUCCESSFULLY OUR STRATEGY Develop industry-leading products Our new products will meet our customers’ needs and enhance our competitive positioning. We have a broad portfolio of business and commercial aircraft, all of which provide customers with unique
Slide 20: Increasing Our Presence to Better Serve Customers Globally
WE ARE INCREASING OUR PRESENCE TO BETTER SERVE OUR CUSTOMERS’ NEEDS GLOBALLY(1) Current network with additions in 2012 Europe, Russia and CIS 1 Service Centre 3 RSOs 17 ASFs / LMFs 2 Parts Depots / Hubs 3 ATPs Moscow, Russia Kazan, Russia Farnborough, UK Americas Peterborough, Canada Frankfurt, Germ
Slide 21: Committed to Delivering on Our Strategic Priorities
WE REMAIN COMMITTED TO DELIVERING ON OUR STRATEGIC PRIORITIES EXPAND OUR DEVELOP INDUSTRY- ACHIEVE FLAWLESS INTERNATIONAL LEADING PRODUCTS EXECUTION PRESENCE We are well-positioned in market segments with solid growth forecasts With focused initiatives, we can capture promising growth opportunities
Slide 22: Agenda
1 OUR PROFILE AGENDA 2 OUR STRATEGY 3 OUR MARKET © Bombardier Inc. or its subsidiaries. All rights reserved.
Slide 23: Well-Positioned to Capture Long-Term Market Opportunities
WE ARE WELL-POSITIONED TO CAPTURE LONG-TERM MARKET OPPORTUNITIES Orders in 2012 support our product and service strategy Business Aircraft In June, NetJets ordered up to Our three families of business jets, when combined, represent the most 275 Challenger business jets comprehensive offering of all
Slide 24: Business Aircraft Orders and Deliveries
BUSINESS AIRCRAFT ORDERS AND DELIVERIES Net orders, deliveries and book-to-bill(1) Business aircraft (Fiscal years ended) Orders (in units) Deliveries (in units) Canadian GAAP IFRS 1.9 1.9 2 Book-to-bill 400 1.3 1.2 1.1 1 452 0.7 200 343 274 251 235 212 232 176 191 179 155 163 107 0 0 Jan. 31, 2007
Slide 25: Commercial Aircraft Orders and Deliveries
COMMERCIAL AIRCRAFT ORDERS AND DELIVERIES Net orders, deliveries and book-to-bill(1) Commercial aircraft (Fiscal years ended) 2.8 2.8 Orders (in units) Deliveries (in units) Canadian GAAP IFRS 325 Book-to-bill 1.9 1.8 225 1.0 1.0 0.8 0.7 0.7 0.8 125 238 128 138 112 114 110 121 87 88 93 97 78 54 50 2
Slide 26: Leading Position in the Business Aircraft Market
WE CONTINUE TO HAVE A LEADING POSITION IN THE BUSINESS AIRCRAFT MARKET Business Aircraft Competitive Environment LIGHT JETS MEDIUM JETS LARGE JETS L40XR L45XR CL800 G7000 L60XR L85 CL300 CL605 G5000 G6000 BOMBARDIER L70 L75 Series G8000 Cessna Dassault Embraer Gulfstream Hawker Beechcraft(1) Product
Slide 27: Highly Efficient Products in All Market Segments
WE HAVE A UNIQUE ADVANTAGE WITH HIGHLY EFFICIENT PRODUCTS IN ALL OUR MARKET SEGMENTS Commercial Aircraft Competitive Environment Turboprops Regional Jets Commercial Jets 60-90 seats 60-79 seats 80-100 seats 100-119 seats 120-149 seats Q400 (1) CRJ700 (1) CRJ900 (1) CRJ1000 (1) CS100 CS300 BOMBARDIER
Slide 28: Market Leader in the Business Aircraft Market
WE ARE THE MARKET LEADER IN THE BUSINESS AIRCRAFT MARKET Business Aircraft Market Share by Units Delivered and Revenues (One-year period ended December 31, 2012) Market Shares by Units Delivered Market Shares by Revenues (557 aircraft deliveries) ($15.6 billion) 3% 12% 6% 5% 32% 9% 37% 22% 19% 17% 1
Slide 29: More Than One-Third Delivery Market Share in 20-99 Seat Category
WE CAPTURED MORE THAN ONE-THIRD DELIVERY MARKET SHARE IN 20-99 SEAT AIRCRAFT CATEGORY 20-99 Seat Aircraft Market Share by Units Delivered (Three-year period ended December 31 , 2012) Market Share by Units Delivered (668 aircraft deliveries) Sukhoi 2% Bombardier ATR 25% 36% Embraer 37% Successful cam
Slide 30: Business Jet Fleet Will Grow to 31,500 Aircraft by 2031
BUSINESS JET FLEET WILL GROW TO 31,500 AIRCRAFT BY 2031, NET OF RETIREMENTS Business Aircraft Market Forecast Fleet Evolution (in units) and Revenues (in $ billions), 2011 to 2031 39.8 14,200 4,600 100 2.3x 1,400 3,200 34.5 3,100 31,500 4,600 18.0 6,500 9,800 3,100 6,400 15.4 2,300 900 2,200 21,900
Slide 31: Long-Term Market Drivers Remain Solid for Business Aircraft
LONG-TERM MARKET DRIVERS REMAIN SOLID FOR BUSINESS AIRCRAFT Business Aircraft Market Drivers 2012-2031 Outlook Status • The wealth of our customer base, comprised of corporations, individuals and Wealth creation governments, can be measured by real GDP • Global GDP growth forecast at a 3.2% average
Slide 32: Business Aircraft Regional Delivery Outlook
BUSINESS AIRCRAFT* REGIONAL DELIVERY OUTLOOK (IN UNITS, 2012-2031) WORLD TOTAL 24,000 1,550 Russia & CIS North America Europe 9,500 3,920 China 1,185 2,420 810 1,345 Latin America 2,285 985 Asia Pacific Middle East Africa India North America China • Largest and most mature market for business aviati
Slide 33: 20- to 149-Seat Category Fleet Expected to Reach 17,000 Units by 2031
THE 20- TO 149-SEAT CATEGORY FLEET IS EXPECTED TO REACH 17,000 UNITS BY 2031 Commercial raft Market Forecast [Fleet Evolution ts) and Annual Revenues (in billions of dollars), 2011 to 2031] 36.1 34.8 > 7,100 3,800 5,700 3,200 =. 17,000 44,200 i 9,000 : . Fleet 2011 Deliveries Retirements Fleet 2021
Slide 34: Long-Term Market Drivers for Commercial Aircraft Are Solid
LONG-TERM MARKET DRIVERS FOR COMMERCIAL AIRCRAFT ARE SOLID Commercial Aircraft Market Drivers 2012-2031 Outlook Status • Air travel demand will be cyclical and directly related to GDP growth Economic Growth • Global GDP forecast at 3.2% over the 20-year forecast period • Long term steady inflation o
Slide 35: Commercial Aircraft Regional Delivery Outlook
COMMERCIAL AIRCRAFT REGIONAL DELIVERY OUTLOOK 20-149 SEAT CATEGORY, IN UNITS, 2012-2031 WORLD TOTAL 12,800 650 Russia & CIS North America 4,730 Europe, 1,590 China 2,220 420 640 Africa 550 Asia Latin America 930 India Pacific 1,070 Middle East North America China • World’s largest aircraft market •
Slide 36: Caution Regarding a Non-GAAP Financial Measure
The CSeries family of aircraft, Learjet 85 aircraft and Global 7000 and Global 8000 aircraft programs are currently in development, and as such are subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specification and data are approximate, may change wi
Slide 37: Bombardier
BOMBARDIER the evolution of mobility