Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Q3 2018 Earnings Presentation
16 slides from Bombardier Inc. Class A's earnings presentation, Nov 8, 2018
Slide 1: Strategic Actions Overview & Financial Results for the Third Quarter 2018
PRIVATE & CONFIDENTIAL - FOR PLANNING PURPOSES DRAFT 11/04/2018 STRATEGIC ACTIONS OVERVIEW & FINANCIAL RESULTS FOR THE THIRD QUARTER 2018 November 8, 2018
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, guidance in respect of various financial metrics and sources of contribution thereto, targets, goals, priorities,
Slide 3: Assumptions
ASSUMPTIONS The following are the material assumptions underlying the 2019 Guidance included in this presentation: All segments • normal execution and delivery of current firm orders and projects in the backlog; • the ability to understand customer needs and portfolio of products and services to dri
Slide 4: Sharpening Our Focus on Growth Opportunities
SHARPENING OUR FOCUS ON GROWTH OPPORTUNITIES AEROSTRUCTURES & TRANSPORTATION BUSINESS AIRCRAFT ENGINEERING SERVICES SOLID MARKET UNIQUE INDUSTRY-LEADING STRONG POSITIONS CAPABILITIES PORTFOLIOS BACKLOG COMMERCIAL AIRCRAFT ESTABLISHED STRONG FOUNDATION FOR GROWTH 4
Slide 5: Reshaping the Portfolio: Sale of the Q400 Program
RESHAPING THE PORTFOLIO: SALE OF THE Q400 PROGRAM Sale of the Q Series Aircraft program, including production assets and aftermarket operations, to 1 Longview Supports strategy to streamline portfolio and focus future investments Purchase price of $300M Expected net proceeds of ~$250M Clos
Slide 6: Reshaping the Portfolio: Sale of BBA's Training Activities
RESHAPING THE PORTFOLIO: SALE OF BBA’S TRAINING ACTIVITIES Sale of Business Aircraft’s training activities to CAE, a long-time Bombardier training partner Offers Business Aircraft customers access to CAE training expertise Supports strategy to streamline portfolio and focus future investments
Slide 7: Driving Financial Performance Through Enhanced Productivity
DRIVING FINANCIAL PERFORMANCE THROUGH ENHANCED PRODUCTIVITY Right-sizing and redeploying the central aerospace engineering team Enables reduction in investments and disciplined capital allocation Launching a new company-wide productivity initiative Focus on optimizing processes, simplifying
Slide 8: Solid Progress Executing Our Turnaround Plan
SOLID PROGRESS EXECUTING OUR TURNAROUND PLAN Q3 2018 2018 GUIDANCE ↑ 3% ORGANIC FROM LOWER END OF REVENUES $3.6B BT, BBA & BAES ~$16.5B THE RANGE ↓ 5% REPORTED EBITDA $333M ↑ 31% $1.25-$1.35B UNCHANGED BEFORE SPECIAL ITEMS1 9.1% MARGIN ~7.9% MARGIN EBIT $271M ↑ 48% ~$1.0B TOP OF END THE RANGE BEFORE
Slide 9: Delivering Strong Financial Performance
DELIVERING STRONG FINANCIAL PERFORMANCE Q3 REVENUES EBIT 2 MARGIN 2 HIGHLIGHTS BEFORE SPECIAL ITEMS BEFORE SPECIAL ITEMS 2018 $2.1B $187M 8.7% 2% organic growth YoY and 7% YTD BT YTD Book-to-bill ratio of 1.0; $33.9B backlog 2017 $2.1B $192M 8.9% (Restated for IFRS15)1 31 deliveries: 4 Learjet
Slide 10: Progressing Towards 2020 Objectives: Introducing 2019 Guidance
PROGRESSING TOWARDS 2020 OBJECTIVES: INTRODUCING 2019 GUIDANCE 2 2018 GUIDANCE 2019 GUIDANCE 2020 OBJECTIVES REVENUES ~$16.5B ≥$18.0B ↑~10% >$20.0B EBITDA $1.25-$1.35B $1.65-$1.8B ↑~30% >$2.25B BEFORE SPECIAL ITEMS1 AT THE MIDPOINT EBIT ~$1.0B $1.15-$1.25B ↑~20% >$1.6B BEFORE SPECIAL ITEMS1 AT THE M
Slide 11: Growing Confidence in 2020 Plan
GROWING CONFIDENCE IN 2020 PLAN RESHAPING THE DRIVING FINANCIAL INCREASING FINANCIAL PORTFOLIO PERFORMANCE FLEXIBILITY 11
Slide 12: Bombardier
BOMBARDIER
Slide 13: Reconciliation of Segment to Consolidated Results
RECONCILIATION OF SEGMENT TO CONSOLIDATED RESULTS 1 1 Due to the adoption of IFRS 15, Revenue from contracts with customers. Refer to the Accounting and reporting developments section of Other in the MD&A for details regarding restatements of comparative period figures. 2 2 Refer to the Consolidated
Slide 14: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES 1 1 Due to the adoption of IFRS 15, Revenue from contracts with customers. Refer to the Accounting and reporting developments section of Other in the MD&A for details regarding restatements of comparative period figures. 2 2 Refer to the Consolidated results of op
Slide 15: Reconciliation of Non-GAAP Measures (Continued)
RECONCILIATION OF NON-GAAP MEASURES (CONTINUED) 1 1 Due to the adoption of IFRS 15, Revenue from contracts with customers. Refer to the Accounting and reporting developments section of Other in the MD&A for details regarding restatements of comparative period figures. 2 2 Refer to the Consolidated r
Slide 16: Global 5500, 6500, 7500 and 8000 Aircraft Disclaimer
GLOBAL 5500, GLOBAL 6500, GLOBAL 7500 AND GLOBAL 8000 AIRCRAFT DISCLAIMER The Global 5500, Global 6500, Global 7500 and Global 8000 aircraft are currently in development, and as such are subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications