17 slides from Bombardier Inc. Class A's earnings presentation, Feb 14, 2019
Slide 1: Financial Results for the Fourth Quarter and Full Year 2018
FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2018 FEBRUARY 14, 2019
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 guidance in respect of various financial and global metrics and sources of contribution thereto,
Slide 3: Assumptions
ASSUMPTIONS Forward-looking statements(1) in this section of the presentation are based on and subject to the following material assumptions: All segments • normal execution and delivery of current firm orders and projects in the backlog; • the ability to understand customer needs and portfolio of p
Slide 4: Driving Stronger Financial Performance
DRIVING STRONGER FINANCIAL PERFORMANCE 2018 2017 VARIANCE LATEST 2018 Fiscal year ended December 31 Restated 1 GUIDANCE FINANCIAL HIGHLIGHTS REVENUES $16.2B $16.2B +3% ~$16.5B From BBA, BT & BAES Revenues grew 3% from BT, BBA 2 and BAES, excluding currency EBITDA $1.3B $1.0B +25% $1.25 - $1.35B im
Slide 5: Strong Fourth Quarter Performance
STRONG FOURTH QUARTER PERFORMANCE Q4 2018 Q4 2017 VARIANCE Restated 1 FINANCIAL HIGHLIGHTS REVENUES $4.3B $4.6B -7% Revenues of $4.3B reflect the deconsolidation of CSALP and a EBITDA 2 $370M $228M +62% managed production slowdown BEFORE SPECIAL ITEMS on certain BT rolling stock contracts EBIT $34
Slide 6: Transportation
TRANSPORTATION Q4 2018 Q4 2017 2018 2017 2018 Restated1 Restated1 GUIDANCE REVENUES $2.2B $2.4B $8.9B $8.6B ~$9.0B 2 EBIT $167M $140M $750M $738M BEFORE SPECIAL ITEMS 2 EBIT MARGIN 7.7% 5.8% 8.4% 8.6% >8.5% BEFORE SPECIAL ITEMS EBIT $236M $129M $774M $443M EBIT MARGIN 10.9% 5.3% 8.7% 5.2% HIGHLIGHTS
Slide 7: Business Aircraft
BUSINESS AIRCRAFT Q4 2018 Q4 2017 2018 2017 2018 Restated1 Restated1 GUIDANCE REVENUES $1.5B $1.4B $5.0B $4.9B ≥$5.0B 2 EBIT $122M $120M $420M $419M BEFORE SPECIAL ITEMS 2 EBIT MARGIN 8.2% 8.3% 8.4% 8.5% ≥8.0% BEFORE SPECIAL ITEMS EBIT $145M $129M $430M $394M EBIT MARGIN 9.7% 8.9% 8.6% 8.0% DELIVERI
Slide 8: Commercial Aircraft
COMMERCIAL AIRCRAFT Q4 2018 Q4 2017 2018 2017 2018 Restated1 Restated1 GUIDANCE REVENUES $421M $651M $1.8B $2.3B ~$1.7B 2 EBIT $(9)M $(133)M $(157)M $(381)M ~$(250)M BEFORE SPECIAL ITEMS 2 EBIT MARGIN (2.1)% (20.4)% (8.9)% (16.4)% BEFORE SPECIAL ITEMS EBIT $(18)M $(138)M $(755)M $(389)M EBIT MARGIN
Slide 9: Aerostructures & Engineering Services
AEROSTRUCTURES & ENGINEERING SERVICES Q4 2018 Q4 2017 2018 2017 2018 Restated1 Restated1 GUIDANCE REVENUES $622M $426M $2.0B $1.6B ~$2.0B 2 EBIT $48M $20M $188M $88M BEFORE SPECIAL ITEMS 2 EBIT MARGIN 7.7% 4.7% 9.6% 5.4% >8.5% BEFORE SPECIAL ITEMS EBIT $- $7M $146M $81M EBIT MARGIN -% 1.6% 7.5% 5.0%
Slide 10: 2019 Guidance
2019 GUIDANCE CONSOLIDATED REVENUES EBITDA1 EBIT1 FCF1 BEFORE SPECIAL ITEMS BEFORE SPECIAL ITEMS ≥ $18.0B $1.65 – $1.80B $1.15 – $1.25B BREAKEVEN +/- $250M SEGMENTS TRANSPORTATION BUSINESS AIRCRAFT AEROSTRUCTURES COMMERCIAL AIRCRAFT +7% +25% +15% - 25% STABLE3 REVENUES ~ $9.5B ~ $6.25B $2.25 – 2.50B
Slide 11: Building Growth on a Solid Foundation
BUILDING GROWTH ON A SOLID FOUNDATION REVENUE GROWTH FROM UNLEASHING EARNINGS DISCIPLINED CAPITAL SOLID BACKLOG POWER ALLOCATION 11
Slide 12: Bombardier
BOMBARDIER
Slide 13: Global 5500, Global 6500, Global 8000 and CRJ550 Aircraft Disclaimer
GLOBAL 5500, GLOBAL 6500, GLOBAL 8000 AND CRJ 550 AIRCRAFT DISCLAIMER The Global 5500, Global 6500, Global 8000 and CRJ550 aircraft are currently in development, and as such are subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data
Slide 14: Caution Regarding Non-GAAP Measures
CAUTION REGARDING NON-GAAP MEASURES This presentation is based on reported earnings in accordance with IFRS and on the following non-GAAP financial measures: EBIT before special items EBIT excluding the impact of restructuring charges, significant impairment charges and reversals, as well as other s
Slide 15: Reconciliation of Segment to Consolidated Results
RECONCILIATION OF SEGMENT TO CONSOLIDATED RESULTS Reconciliation of segment to consolidated results Fourth quarters Fiscal years ended December 31 ended December 31 2018 2017 2018 2017 restated(1) restated(1) Revenues Business Aircraft $ 1,494 $ 1,448 $ 4,994 $ 4,933 Commercial Aircraft 421 651 1,75
Slide 16: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Reconciliation of EBITDA before special items and EBITDA to EBIT Fourth quarters Fiscal years ended December 31 ended December 31 2018 2017 2018 2017 restated(1) restated(1) EBIT $ 342 $ 73 $ 1,001 $ 299 Amortization 84 89 272 314 Impairment charges on PP&E and in
Slide 17: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Reconciliation of adjusted net income (loss) to net loss and computation of adjusted EPS Fourth quarters ended December 31 2018 2017 (per share) (per share) restated(1) Net income (loss) $ 55 $ (188) Adjustments to EBIT related to special items(2) (56) $ (0.02) 66