Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Investor Day (May 2024)
36 slides from Bombardier Inc. Class A's investor day presentation, May 1, 2024
Slide 1: Investor Day
= — —_ Bombardier Investor Day MAY 187, 2024
Slide 2: Presenters
Presenters Éric Martel Bart Demosky PRESIDENT AND CHIEF EXECUTIVE OFFICER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 2
Slide 3: 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 outlook or guidance in respect of various financial and global metrics and sources of contributi
Slide 4: Caution Regarding Non-GAAP and Other Financial Measures
Caution Regarding Non-GAAP and Other Financial Measures Certain financial measures in this presentation are non-GAAP financial measures, non-GAAP financial ratios or supplementary financial measures, including adjusted EBITDA, adjusted EBITDA margin, Free Cash Flow (FCF) (usage), available liquidity
Slide 5: Agenda: Strategic Overview, Financial Overview
Agenda 1 Strategic Overview 2 Financial Overview 5
Slide 6: Bombardier Is the World's Leading Business Aviation Company
Bombardier Is the World’s Leading Business Aviation Company Focused, Agile, Industry Leading 5,000+ Aircraft Pioneer in Sustainability Engaged and Responsive Product Portfolio Installed-base to our Customers for Business Aviation Note: Refer to our disclosure on forward-looking statements at the beg
Slide 7: Bombardier Supports Business Aviation's Commitment Toward Net-zero Carbon Emissions By 2050
Bombardier Supports Business Aviation’s Commitment Toward Net-zero Carbon Emissions By 2050 Covering the totality of our flight operations with a blend of ~30% SAF via Book-and-Claim system Industry-first publication of Environmental Product Declarations (EPD) for complete product lineup Committed t
Slide 8: Impressive Financial Turnaround Since 2020
Impressive Financial Turnaround Since 2020 Since Fiscal year ended 2020 2021 2022 2023 December 31, 2020 18% 22% 22% 13% Revenues CAGR Revenues 20% 21% Aftermarket Revenues CAGR ◼ Aircraft & Other Manufacturing 1 $5.6B2 $6.1B $6.9B $8.0B ◼ Aftermarket 82% 80% 78% 78% Deliveries 114 120 123 138 Met d
Slide 9: Exceptional People and Strong Expertise to Deliver Results
Exceptional People and Strong Expertise to Deliver Results Achievements Since 2020 Reached 79% employee engagement Entry-into-service of Challenger 3500 and ~77% increase in Aftermarket revenues launch of Global 8000 Surpassing 1,700 aircraft Launch and strong growth of Meeting delivery guidance for
Slide 10: On Track to Our 2025 Objectives and Positioned for Growth Through 2030
On Track to Our 2025 Objectives and Positioned for Growth Through 2030 2025 Objectives Revenues ◼ Aircraft Manufacturing & Other1 ~65% ◼ Aftermarket ~22% >$9.0B ◼ Defense & Pre-owned Aircraft2 ~13% Growth Levers Through 2030 Adjusted EBITDA3 >$1,625M Industry-leading portfolio Adjusted EBITDA Margin
Slide 11: Higher Valuation Through Growth and Multiples Re-rating
Higher Valuation Through Growth and Multiples Re-rating By 2025 Through 2030 Repaired balance sheet 2.0x – 2.5x net leverage1 Strong growth opportunities Industry leading margins ~18% Adjusted EBITDA margin1 Incremental revenue diversification Meaningful cash flow generation > $900M in FCF2 Value-ac
Slide 12: Strong Backlog to Execute Our Plan
Strong Backlog to Execute Our Plan Bombardier Backlog1 Bombardier Aircraft Deliveries2 [In $B, 2020 – Q1 2024] [Units, 2020 – 2023, 2024 Guidance, 2025 Objective] +39% +31% Backlog Deliveries 14.8 14.9 150-155 ~150 14.2 138 12.2 120 123 114 10.7 75 Large 59 66 70 Medium 44 44 50 63 Light 11 10 3 202
Slide 13: Robust Industry Backdrop Persists
Robust Industry Backdrop Persists Industry Year-end Backlog1 Industry Pre-Owned Inventory2 [In $B, 2019 – 2023] [As % of total fleet at end of 1st quarters, 2019 -2024] 48 Large Medium 32 7.6% 7.1% 6.1% 5.8% Monitoring items 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2024 Macro uncertainty an
Slide 14: Established and Compelling Product Lineup in Key Segments
Established and Compelling Product Lineup in Key Segments LARGE CABIN MEDIUM CABIN GLOBAL AIRCRAFT CHALLENGER AIRCRAFT Global 8000 Global 7500 Challenger 650 Challenger 3500 Entry-into-service in 20251 Global 6500 Global 5500 1. The Global 8000 aircraft is currently under development and remains to
Slide 15: Medium and Large Aircraft Driving Industry Revenue Growth
Medium and Large Aircraft Driving Industry Revenue Growth Industry Revenues1 Light, Medium & Large Aircraft Sales [In $B, 2019 – 2023, 2024 Forecast, 2025 Forecast, 2030 Forecast] 25.7 23.2 23.7 20.0 17.9 18.5 18.4 17.4 Medium & Large 22.3 +2.8% 20.0 20.4 CAGR 2019-2030 [Bombardier Product 16.4 Medi
Slide 16: Bombardier Well-Positioned With Fleet Operators
Bombardier Well-Positioned With Fleet Operators, the Fastest Growing Segment in Business Aviation Bombardier Aircraft Flight Hours per Operator Type1 [Flight hours growth for the 1st quarters of 2024 vs 2019] Growth rate in “Higher revenues were primarily due to increases in the number of aircraft i
Slide 17: Capturing a Greater Portion of the Pre-owned Market
Capturing a Greater Portion of the Pre-owned Market with Potential to Grow Through 2030 Total Size of Bombardier Pre-owned Aircraft Market1 Certified Pre-Owned Program Potential to Grow Participation Through Extended Product Offering Channeling Higher Aftermarket Growth Medium and Large Aircraft Onl
Slide 18: Rapidly Growing Bombardier Fleet Supported by Worldwide Customer Service Network
Rapidly Growing Bombardier Fleet Supported by Worldwide Customer Service Network Bombardier Aircraft Fleet1 Bombardier Customer Service Network Facts [Approx. units, 2019 – 2023, 2024 Forecast, 2025 Forecast, 2030 Forecast | % of Fleet] Gross square ~4% CAGR ~3M sq ft network footage 5,700 2019-2030
Slide 19: Customer Services Will Continue Significant Growth at Higher Margins
Customer Services Will Continue Significant Growth at Higher Margins Total Size of Bombardier Aftermarket1 [In $B, 2020 – 2023, 2024 Forecast, 2025 Objective, 2030 Potential] Reaching Objective ~One Year Ahead of Original Plan ~5.6 Annual mid to high single digit growth in Bombardier Services revenu
Slide 20: Robust Demand in the Defense Market Supports 3x to 5x Revenue Growth
Robust Demand in the Defense Market Supports 3x to 5x Revenue Growth Global 10-year Demand Outlook1 Aircraft & Modification Spend1 Bombardier Defense Revenues 2023 – 2032 Addressable Market Revenues Aircraft Demand ~375 $25B Aircraft Aircraft [$B, 2021 – 2023, 2025 Forecast, 2030 Potential] Aircraft
Slide 21: Continued Growth and Capital Allocation Optionality Through 2030
Continued Growth and Capital Allocation Optionality Through 2030 2021 - 2025 Focus Areas 2025 Objectives Growth Levers Through 2030 • Global 7500 margin contribution • Industry-leading portfolio Strong and FCF1 • Aftermarket expansion Generation >$900M • Bombardier Defense growth Sustained • Cost re
Slide 22: Deploying Capital Beyond 2025 Through a ROIC-focused Approach
Deploying Capital Beyond 2025 Through a ROIC-focused Approach Capital allocation framework Target Allocation ~$300M / year Excess available liquidity OPERATIONAL CAPITAL INORGANIC PRODUCT CAPEX STRUCTURE GROWTH LINEUP • Organic growth • Share buybacks • Aftermarket and Defense M&A • Derivative Aircr
Slide 23: Agenda: Strategic Overview, Financial Overview
Agenda 1 Strategic Overview 2 Financial Overview 23
Slide 24: A Reshaped Bombardier Based on What the Team Controls
A Reshaped Bombardier Based on What the Team Controls Improved Recurring 2021 - 2025 Financial Performance Focus Areas 2020 vs 2023 • Global 7500 margin contribution Incremental • Aftermarket expansion > $1.0B Adjusted EBITDA1 Ensuring Performance in all Delivery Environments • Cost reduction plan •
Slide 25: Revenue Growth and Diversification Continues with Significant Upside Potential
Revenue Growth and Diversification Continues with Significant Upside Potential 2020 2023 2025 2030 Objective Potential 10% 9% 13% ~50% 18% 22% 22% $5.6B3 $8.0B >$9.0B Assuming 114 deliveries 138 deliveries ~150 deliveries ~150 deliveries 72% 69% 65% ~50% Aircraft Manufacturing & Other1 Aftermarket D
Slide 26: Our Financials Reflect Unrecognized Value and Potential
Our Financials Reflect Unrecognized Value and Potential Market leader in Medium and • 1st or 2nd in every market where we compete Large segments • Large and growing installed-base fleet Revenue diversification and • 31% of 2023 revenues from Aftermarket, Defense and Pre-owned growth potential • Pote
Slide 27: ROIC-focused Capital Allocation Approach Already Embedded
ROIC-focused Capital Allocation Approach Already Embedded New Global 8000 program New Challenger 3500 program Aftermarket expansion Bombardier Defense Smart investments on product lineup managed within operational Low capital intensity lease Leveraging existing platforms for CAPEX plan of ~$300M ann
Slide 28: Deploying Integrated Capital Allocation Framework Beyond 2025
Deploying Integrated Capital Allocation Framework Beyond 2025 Objectives Financial Measures Maximize shareholder returns Return of cash to shareholders Capital Structure Maintain strong balance sheet Maintain / improve credit metrics Focused M&A Increased revenue diversification Inorganic Growth Lev
Slide 29: Clear Runway Toward Our 2025 Objectives
Clear Runway Toward Our 2025 Objectives 2025 2023 Objectives Deliveries 138 ~150 Revenues $8.0B >$9.0B Adjusted EBITDA1 $1,230M >$1,625M Adjusted EBITDA Margin2 15.3% ~18% FCF1 Generation $257M >$900M Net leverage2 3.3x 2.0x – 2.5x 1. Adjusted EBITDA and Free Cash Flow (FCF) are non-GAAP financial m
Slide 30: Revenues Increasing Through Strong Backlog, Diversification and Service Gains
Revenues Increasing Through Strong Backlog, Diversification and Service Gains Revenue Growth [2023 – 2025 Objective] >$9.0B $8.0B 2023 Aircraft Manufacturing & Aftermarket 2025 Results Other 1 Objective 1. Represents revenues from sale of new aircraft, specialized aircraft solutions and pre-owned ai
Slide 31: Continued Strong EBITDA Growth Ahead
Continued Strong EBITDA Growth Ahead Adjusted EBITDA1 Growth [2023 – 2025 Objective] >$1,625M $1,230M 2023 Aircraft Aftermarket Pricing Net Strategic 2025 Results Manufacturing & of Inflation Investments Objective Other 2 1. Adjusted EBITDA is a non-GAAP financial measure. A non-GAAP financial measu
Slide 32: Significant Free Cash Flow Generation Leading to Capital Allocation Optionality
Significant Free Cash Flow Generation Leading to Capital Allocation Optionality Beyond 2025 >$1,625M ~$300M >$900M $300M - $400M 2025 Operational Cash Interest 2 on Net Working Cash Taxes 2025 Adjusted EBITDA1 CAPEX LTD & Leases Capital FCF 1 Generation Objective Objective 1. Adjusted EBITDA and Fre
Slide 33: Continuing to Reduce Leverage and Optimize Liquidity
Continuing to Reduce Leverage and Optimize Liquidity to Drive Down Interest Costs Net Leverage1 Liquidity2 Evolution [2021 – 2025 Objective] [2021 – 2025 Objective] Approaching investment-grade levels Improving liquidity requirements 7.7x $2.1B Priorities $1.9B $1.8B Targeted Pay down debt Range 4.6
Slide 34: Continued Focus on Proactive Debt Management
Continued Focus on Proactive Debt Management Maturity profile [Notional amount in $M, as at May 1st, 2024 | $5.6B Total debt] Debt reduction $4.5B since 2020 Priorities 1,433 ~$330M Annual Cash Interest Savings1,2 Maintain adequate debt maturity runway Build manageable and flexible debt 750 750 750
Slide 35: Conclusion
Conclusion On Track to Strong Growth Resilient ROIC-focused Deliver 2025 Levers Through Business Model Capital Allocation Objectives 2030 Note: Refer to our disclosure on forward-looking statements at the beginning of this presentation. 35
Slide 36: Pas
—_—, — Pas Bombardier