Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Investor Presentation (January 2010)
41 slides from Bombardier Inc. Class A's investor presentation, Jan 20, 2010
Slide 1: Bombardier Aerospace in Querétaro
Bombardier Aerospace in Querétaro Mexico Manufacturing Center (MMC) Presentation to financial analysts January 20, 2010
Slide 2: Mexico Manufacturing Center Agenda
Mexico Manufacturing Center Agenda General Introduction Structures Electrical Quality Continuous Improvements Learjet 85 2
Slide 3: Why Queretaro?
Presence of Bombardier in Mexico Why Queretaro? • The Mexican Government is very engaged in an aerospace industry • Queretaro has a good educational system (schools & universities) • Proximity to Mexico City (200 km, 26M population) • Low turnover of local workforce • Queretaro has a well developed
Slide 4: Mexico Manufacturing Center - Two Locations in Queretaro
Mexico Manufacturing Center- Two Locations in Queretaro Airport site El Marques Industrial Park 4
Slide 5: Mexico Manufacturing Center (MMC) Airport Location
Mexico Manufacturing Center (MMC) Airport Location • New airport (opened in Dec 2004) • Longest runway in Mexico. Can land the new Airbus 380 (3,500 meters) • Bombardier Site covers 4,000,000 sq-ft • MMC site is adjacent to the existing Querétaro International Airport • Querétaro is located 200 km n
Slide 6: Mexico Manufacturing Center Organization
Mexico Manufacturing Center Organization Réal Gervais STRUCTURES STRUCTURES ELECTRICAL ELECTRICAL CL850/Q400 Global Express Jonathan Connell Jonathan Connell Manuel del Rio Leonardo Mendoza Jean-Marc Lariviere Production Production Production Production Production Methods Methods Methods Methods Met
Slide 7: Mexico Manufacturing Center – Key Milestones
Mexico Manufacturing Center – Key Milestones October 2005: Project go-ahead May 2006: Start of Structural (CL850 - Q400) and Electrical activities in El Marques June 2007: Started construction at airport site October 2007: Production (Global Express structure) started in October at the airpo
Slide 8: Mexico Manufacturing Center - Transfer Plan (without Learjet 85)
Mexico Manufacturing Center - Transfer Plan (without Learjet 85) 2006 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Structure & Electrical CL850 Q400 Q400 GEX GEX GEX GEX GEX CL605 CL/CRJ 1200 1078 1022 1000 800 778 600 400 296 200 0 Q1 1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 9: Mexico Manufacturing Center - Committed to the community
Mexico Manufacturing Center - Committed to the community Coyme Rural School Restoration Children’s Day –Toy Collection August 2007 April 2008 Rural School restoration located in El Marqués Toys collected from employees Bathrooms, classrooms, painting, computer Visits conducted to deliver toy
Slide 10: Mexico Manufacturing Center - Committed to the community
Mexico Manufacturing Center - Committed to the community Home Restoration Summer Camp for Kids March 2009 July 2009 Cleaning and painting of kitchen and dining room Summer Camp for employees’ children 71 women benefited Plus 11 boys from Hogares Providencia House Volunteer Committee: 25 em
Slide 11: Mexico Manufacturing Center - Committed to the community
Mexico Manufacturing Center - Committed to the community 2,000 kilos Sierra Gorda Long-term Commitment Food Collection December 2008/ Dec 2009: December 2008 Long-term commitment of $1,000,000 MX annually to Dry Food (rice, beans…) delivered to social support three principal projects: Hydrol
Slide 12: Mexico Manufacturing Center Agenda
Mexico Manufacturing Center Agenda General Introduction Structures Electrical Quality Continuous Improvements Learjet 85 12
Slide 13: Structural Components Current Production
Structural Components Current Production Program Product Rudder Challenger 605 V-Stab Mid Fuse Rudder Challenger 850 V-Stab CRJ-700 Rudder CRJ-900 Rudder CRJ-1000 Rudder Global Express Components/ AFT Global Express Fuselage Rudder Elevators Q400 H-Stab 13
Slide 14: Structural Components
Structural Components = <r eee me eee eee eee _ en ee - BOMBARDIER 14
Slide 15: Structural Components
Structural Components 15
Slide 16: Mexico Manufacturing Center Agenda
Mexico Manufacturing Center Agenda General Introduction Structures Electrical Quality Continuous Improvements Learjet 85 16
Slide 17: Electrical Components Produced in Mexico
Electrical Components Produced in Mexico -Main Harnesses (CRJ 700-900-1000, Q400, Challenger 300, CL605, CL850, Global Express) - Electrical sub-assemblies Since we started operations we have delivered over 74,000 components consisting of harnesses and sub-assemblies 17
Slide 18: Electrical Components – Programs supported
Electrical Components – Programs supported 18
Slide 19: Electric harnesses/sub-assemblies
Electric harnesses/sub-assemblies 19
Slide 20: Mexico Manufacturing Center Agenda
Mexico Manufacturing Center Agenda General Introduction Structure Electrical Quality Continuous Improvements Learjet 85 20
Slide 21: Quality Management System (QMS) & AS9100 Certified
Quality Management System (QMS) & AS9100 Certified AS9100 CERTIFICATION Mexico is committed to the & Sustainment Phase Quality of its products through its Quality Management System Audit by Registrar (Apr 2009) AS9100 Certification Plan (March 2009) AS9100 Internal Audit & DGAC audit (Feb 2009) Tran
Slide 22: Mexico Manufacturing Center – Quality
Mexico Manufacturing Center – Quality • A TCCA (Transport Canada) audit was conducted in December 2008 at Queretaro site with no major findings • A DGAC (Mexican Authorities) audit was conducted in February 2009 at Queretaro with no major findings. Production permit in place. • AS9100 certification
Slide 23: Mexico Manufacturing Center – Quality Testimonials
Mexico Manufacturing Center – Quality Testimonials “I can’t believe what you have achieved in 30 months.” Bertrand George, Vice-president Senior Industrialization Chief Operation Airbus “We were all impressed with the growth of the Bombardier Mexico operation. The facility is quite impressive and so
Slide 24: Mexico Manufacturing Center Agenda
Mexico Manufacturing Center Agenda General Introduction Structures Electrical Quality Continuous Improvements Learjet 85 24
Slide 25: International Certifications in Health & Safety
International Certifications in Health & Safety - OSHAS 18001 / ISO 14001, Bombardier Safety Award We obtained the OHSAS-ISO certifications in January 2009 Frequency Mexico site won internal award twice Severity 1st year to win the internal award 25
Slide 26: Continuous Improvement Culture (examples)
Continuous Improvement Culture (examples) 2008-2009: •24 Kaizen events completed •181 Improvement projects completed As of Dec 2009 26
Slide 27: Examples of Improvements
Examples of Improvements Visual Working Instructions -All work instructions have been completely redesigned -More universal and easy to understand by any employees -Use of pictograms instead of words reduces the risk of errors as well as language barrier. 2008-2009: 2009: 2,074 2073 improvement impr
Slide 28: Mexico Manufacturing Center
Mexico Manufacturing Center Bombardier was the first manufacturer to establish itself in the Queretaro aerospace cluster. Bombardier Mexico adheres to the same high-quality standards as all Bombardier sites worldwide. International certifications obtained in less than three years of operations
Slide 29: Mexico Manufacturing Center Agenda
Mexico Manufacturing Center Agenda General Introduction Structures Electrical Quality Continuous Improvements Learjet 85 29
Slide 30: Teams Positioned Across Three Sites
Teams Positioned Across Three Sites Montreal responsibilities: Structural detail design Co-location with Queretaro team Wichita responsibilities: Systems installation Aircraft integration, certification, stds Final line and customer support Over 200 employees Queretaro responsibili
Slide 31: Learjet 85 – Mexico Manufacturing Center
Learjet 85 –Mexico Manufacturing Center Current Operations Current Operations Petsche Learjet 85 building Grand Total for Learjet 85 in MMC building 200,000 sq ft Lean Principles for operations are being applied 31
Slide 32: New Building for Learjet 85 Structures Manufacturing
New Building for Learjet 85 Structures Manufacturing 32
Slide 33: Mexico Facilities for Learjet 85 Production
Mexico Facilities for Learjet 85 Production Layout for Airport Site (MA1) Stores for Learjet 85 Learjet 85 Wing Assembly 33
Slide 34: Composite Technology Readiness Roadmap Progress
Composite Technology Readiness Roadmap Progress Phase 1 Phase 2 Phase 3 Phase 4 Material Selection Design Design Validation of and Basic Drivers Optimization Mfg Process 34
Slide 35: El Marques supporting technology readiness and validating our processes
El Marques supporting technology readiness and validating our processes 35
Slide 36: Learjet 85 – Mexico Training
Learjet 85 – Mexico Training Title Module Duration (hrs) The trade and the training process 1 15 Health and safety 2 15 Mathematics and metrology 3 30 UNAQ: “Universidad Nacional Aeronáutica de Process and raw materials 4 45 Plans interpretation and drawing sketches 5 40 Querétaro” composite capabil
Slide 37: Fabrication of First Concept Fuselage Section
Fabrication of First Concept Fuselage Section Mexico team working in Montreal 37
Slide 38: “Proof of Concept” Fuselage and Panel Lay Up
“Proof of Concept” Fuselage and Panel Lay Up Validated our manufacturing process using existing fuselage molds 38
Slide 39: Structures Design Progressing to Plan
Structures Design Progressing to Plan LEARJET 85 FUSELAGE DESIGN 39
Slide 40: Structure Design Progressing to Plan
Structure Design Progressing to Plan LEARJET 85 FUSELAGE DESIGN 40
Slide 41: Learjet 85 Mexico
Learjet 85 Mexico Learjet 85 Mexico supporting the program requirements with: Factory layout based on lean manufacturing principles 53 production employees ready to support manufacturing All employees receive over six months of training 120 total employees (remainder in Montreal) Latest te