Bombardier Inc. Class A · TSX:BBD.A
Bombardier Inc. Class A — Frontenac Institutional Investor Conference 2004
20 slides from Bombardier Inc. Class A's conference presentation, Oct 1, 2004
Slide 1: Frontenac Institutional Investor Conference 2004
CIBC World Markets Frontenac Institutional Investor Conference 2004 Paul M. Tellier President and Chief Executive Officer Québec City October 1, 2004
Slide 2: Safe harbour statement
Safe harbour statement This presentation may contain “forward-looking statements” reflecting the Corporation’s expectations regarding its future growth, results and performance. These forward-looking statements reflect the current views of the Corporation’s management and are subject to various risk
Slide 3: Corporate Overview
Corporate Overview Bombardier Aerospace Bombardier Transportation Bombardier Capital Going Forward 3
Slide 4: Bombardier
Bombardier Corporate office based in Montréal, Canada Workforce of some 60,000 people worldwide, as of end of past fiscal year Revenues of $15.5 billion for fiscal year ended January 31, 2004 More than 95% of revenues generated outside Canada Stock exchange listings: Toronto, Frankfurt, Br
Slide 5: Overview - Second quarter F2004-05
Overview - Second quarter F2004-05 Revenues: $3.9 billion EBT (before special items): $49 million Net income: $23 million EPS: $0.01 Cdn Backlog: $32.9 billion Highlights: Back in the black with a net profit of $23 million Free cash flow performance way ahead of F2003-04 Solid business aircraf
Slide 6: Bombardier Aerospace
Corporate Overview Bombardier Aerospace Bombardier Transportation Bombardier Capital Going Forward 6
Slide 7: Aerospace results
Bombardier Aerospace results (In millions of U.S. dollars) Q2 Q2 F2004-05 F2003-04 Revenues 1952 2052 EBITDA before special items 129 164 Depreciation and amortization 87 71 EBIT before special items 42 93 Interest expense, net 54 46 EBT before special items (12) 47 Special items - (28) EBT (12) 19
Slide 8: Aircraft deliveries
Bombardier aircraft deliveries Q2 Q2 F2004-05 F2003-04 Business aircraft 29 19 Regional aircraft 52 66 Total 81 85 8
Slide 9: Aerospace: Very well positioned for market pick-up
Bombardier Aerospace Very well positioned for market pick-up Strong recovery in business jet market as shown by new orders • Year-to-date deliveries of 53 vs. 35 last year and net orders of 60 vs. 24 • More than 60% reduction in used business jet inventory • Increased prices - Full benefits of ord
Slide 10: Aerospace (cont'd): US Airways impact
Bombardier Aerospace (cont’d) US Airways impact As of September 10, there were 45 aircraft in the backlog for US Airways 24 of these are to be delivered over the next 4 quarters up to the end of Q2F06 (12 by this fiscal year end) Of these 24, GECAS has committed to take 16 over the next 4 quar
Slide 11: Bombardier Transportation
Corporate Overview Bombardier Aerospace Bombardier Transportation Bombardier Capital Going Forward 11
Slide 12: Transportation results
Bombardier Transportation results (In millions of U.S. dollars) Q2 Q2 F2004-05 F2003-04 Segmented revenues Manufacturing 1,709 1,542 Services 138 145 Total revenues 1,847 1,687 EBITDA before special items 79 93 Depreciation and amortization 36 27 EBIT before special items 43 66 Interest income, net
Slide 13: Transportation: Focus on margin improvement
Bombardier Transportation Focus on margin improvement Back in the black • EBT before special items of $51 million vs. negative $110 million for Q1 F2004-05 • Current EBT before special items is the run rate for the next quarters - Contract adjustments in previous quarters being worked out of backl
Slide 14: Transportation (cont'd): Site closures progressing as planned
Bombardier Transportation (cont’d) Site closures are progressing as planned Amadora (Portugal) Closed on May 25, 2004 Doncaster (U.K.) Closed on June 25, 2004 Six months ahead of plan Derby Pride Park As per plan (December 2004) (U.K.) Pratteln (Switzerland) As per plan (Q2 F2005-06) Neg
Slide 15: Bombardier Capital
Corporate Overview Bombardier Aerospace Bombardier Transportation Bombardier Capital Going Forward 15
Slide 16: Capital results
Bombardier Capital results (In millions of U.S. dollars) July 31, Jan. 31, 2004 2004 Continued portfolios 2,654 2,726 Wind-down portfolios 676 930 Total 3,330 3,656 Q2 Q2 F2004-05 F2003-04 Revenues 107 127 EBT 10 14 16
Slide 17: Capital
Bombardier Capital Wind-down progressing as planned • 27% reduction since beginning of year • 61% year-over-year reduction ($1.1 billion) Contributing to profitability and liquidity 17
Slide 18: Going Forward
Corporate Overview Bombardier Aerospace Bombardier Transportation Bombardier Capital Going Forward 18
Slide 19: Going forward
Bombardier going forward 6% EBT margin is an achievable objective Transportation restructuring and strengthened project management Business jet recovery Proactively managing risks [i.e. US Airways] Regional air transportation market expanding • Central to airline recovery • 33% more regional
Slide 20: Frontenac Institutional Investor Conference 2004
CIBC World Markets Frontenac Institutional Investor Conference 2004 Paul M. Tellier President and Chief Executive Officer Québec City October 1, 2004
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