Bombardier Inc. Class A · TSX:BBD.A

Bombardier Inc. Class A — Q1 2019 Earnings Presentation

18 slides from Bombardier Inc. Class A's earnings presentation, May 2, 2019

  1. Slide 1: Financial Results for the First Quarter 2019

    b FINANCIAL RESULTS FOR THE FIRST QUARTER 2019 MAY 2, 2019

  2. Slide 2: Caution Regarding Forward-Looking Statements

    CAUTION REGARDING FORWARD-LOOKING STATEMENTS b 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 theret

  3. Slide 3: Two Strong Businesses with Best-in-Class Products

    TWO STRONG BUSINESSES WITH BEST-IN-CLASS PRODUCTS BOMBARDIER TRANSPORTATION BOMBARDIER AVIATION LEADING PORTFOLIOS WITH FULLY INTEGRATED CAPABILITIES 3

  4. Slide 4: Q1 Consolidated Results

    Q1 CONSOLIDATED RESULTS b Three-month periods ended March 31 2019 2018 VARIANCE KEY HIGHLIGHTS REVENUES $3.5B $4.0B (13)%  Revenues driven lower from timing of aircraft deliveries, slower project ramp up at 1 Adjusted EBITDA $266M $265M - Transportation, and unfavourable currency translation EBIT $

  5. Slide 5: Business Aircraft

    BUSINESS AIRCRAFT b FINANCIAL RESULTS REVENUES Q1 2019 Q1 2018 VARIANCE REVENUES $970M $1.1B (13)% Services 1 33% ADJUSTED EBIT $74M $98M (24)% $970M 1 ADJUSTED EBIT MARGIN 7.6% 8.8% (120) bps EBIT $594M $97M 512% 67% Manufacturing EBIT MARGIN 61.2% 8.7% 5250 bps & Other KEY HIGHLIGHTS  20% Afterma

  6. Slide 6: Commercial Aircraft

    COMMERCIAL AIRCRAFT b FINANCIAL RESULTS DELIVERIES Q1 2019 Q1 2018 VARIANCE Q400 1 REVENUES $241M $463M (48)% 1 ADJUSTED EBIT $22M $(73)M nmf 4 ADJUSTED EBIT MARGIN 1 9.1% (15.8)% 2490 bps Aircraft EBIT $22M $(73)M nmf 3 EBIT MARGIN 9.1% (15.8)% 2490 bps CRJ KEY HIGHLIGHTS  Revenues reduced year-ov

  7. Slide 7: Aerostructures & Engineering Services

    AEROSTRUCTURES & ENGINEERING SERVICES b FINANCIAL RESULTS REVENUES Q1 2019 Q1 2018 VARIANCE REVENUES $470M $446M 5% 1 ADJUSTED EBIT $66M $47M 40% External 43% ADJUSTED EBIT MARGIN 1 14.0% 10.5% 350 bps $470M 57% Internal EBIT $66M $46M 43% EBIT MARGIN 14.0% 10.3% 370 bps KEY HIGHLIGHTS  Revenues in

  8. Slide 8: Transportation

    TRANSPORTATION b FINANCIAL RESULTS REVENUES Q1 2019 Q1 2018 VARIANCE Signalling 10% REVENUES $2.1B $2.4B (11)% 1 ADJUSTED EBIT $83M $189M (56)% Services 23% 1 ADJUSTED EBIT MARGIN 3.9% 8.0% (410) bps $2.1B EBIT $83M $191M (57)% 67% EBIT MARGIN 3.9% 8.1% (420) bps Rolling Stock KEY HIGHLIGHTS BACKLOG

  9. Slide 9: Consolidated 2019 Guidance

    CONSOLIDATED 2019 GUIDANCE ORIGINAL 2019 GUIDANCE REVISED 2019 GUIDANCE REVENUES ≥$18.0B ~$17.0B 1 ADJUSTED EBIT $1.15 – $1.25B $1.0 – $1.15B ADJUSTED EBITDA $1.65 - $1.80B $1.50 - $1.65B 1 BREAKEVEN FCF UNCHANGED ±$250M Refer to our disclosure on forward-looking statements and assumptions at the be

  10. Slide 10: Segment 2019 Guidance

    SEGMENT 2019 GUIDANCE ORIGINAL 2019 GUIDANCE REVISED 2019 GUIDANCE REVENUES ~$6.25B Unchanged 1 BUSINESS AIRCRAFT ADJUSTED EBIT MARGIN ~7.5% Unchanged DELIVERIES 150-155 Unchanged 2 2 REVENUES ~$1.4B ~$1.15B COMMERCIAL AIRCRAFT ADJUSTED EBIT 1 ~$(125M) Unchanged 2 DELIVERIES ~35 CRJ & Q400 2 ~30 CRJ

  11. Slide 11: Operating Flexibility

    b OPERATING FLEXIBILITY  $3.3B cash on hand  Additional $250M expected from closing of the Q Series transaction mid-year  New 8-year $2B Senior Notes cleared maturities through May 2021  Extended revolving credit facilities terms to 2022 Refer to our disclosure on forward-looking statements and

  12. Slide 12: Focused on 2019 Priorities

    FOCUSED ON 2019 PRIORITIES b EXECUTING ON RAMPING-UP STREAMLINING RAIL PROJECTS THE GLOBAL 7500 COST STRUCTURE 12

  13. Slide 13: Bombardier

    BOMBARDIER

  14. Slide 14: Global 5500, Global 6500, Global 8000 and CRJ Aircraft Disclaimer

    GLOBAL 5500, GLOBAL 6500, GLOBAL 8000 AND CRJ 550 AIRCRAFT b 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 da

  15. Slide 15: Caution Regarding Non-GAAP Financial Measures

    CAUTION REGARDING NON-GAAP FINANCIAL MEASURES b This presentation is based on reported earnings in accordance with IFRS and on the following non-GAAP financial measures: Non-GAAP financial measures Adjusted EBIT(1) EBIT excluding special items. Special items comprise items which do not reflect the C

  16. Slide 16: Reconciliation of Segment to Consolidated Results

    RECONCILIATION OF SEGMENT TO CONSOLIDATED RESULTS b Reconciliation of segment to consolidated results Three-month periods ended March 31 2019 2018 Revenues Business Aircraft $ 970 $ 1,110 Commercial Aircraft 241 463 Aerostructures and Engineering Services 470 446 Transportation 2,107 2,355 Corporate

  17. Slide 17: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES b Reconciliation of adjusted EBITDA(1) to EBIT Three-month periods ended March 31 2019 2018 EBIT $ 684 $ 201 Amortization 91 62 Impairment charges on PP&E and intangible assets — 2 Special items excluding impairment charges on PP&E and intangible assets(

  18. Slide 18: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES b Reconciliation of adjusted net income (loss) to net income and computation of adjusted EPS Three-month periods ended March 31 2019 2018 (per share) (per share) Net income $ 239 $ 44 Adjustments to EBIT related to special items (1) (513) $ (0.22) — $ —

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