BOMBARDIER BUSINESS AIRCRAFT OVERVIEW

Transcription

1 BOMBARDIER BUSINESS AIRCRAFT OVERVIEW STEVE RIDOLFI PRESIDENT 2012 PRODUCT UPDATE & VALUATION SEMINAR OCTOBER 4, 2012

2 FORWARD LOOKING STATEMENTS FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, markets and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry into service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; our competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations. Forward-looking statements generally can be identified by the use of forward-looking terminology such as may, will, expect, intend, anticipate, plan, foresee, believe, continue or maintain, the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. While we consider our assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this presentation, refer to the respective Guidance and forward-looking statements sections in Overview, Bombardier Aerospace and Bombardier Transportation sections in the Management s Discussion and Analysis ( MD&A ) in the Corporation s annual report for the fiscal year ended December 31, Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry and major rail operators), operational risks (such as risks related to developing new products and services; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; to the environment; dependence on certain customers and suppliers; human resources; fixed-price commitments and production and project execution), financing risks (such as risks related to liquidity and access to capital markets, exposure to credit risk, certain restrictive debt covenants, financing support provided for the benefit of certain customers and reliance on government support) and market risks (such as risks related to foreign currency fluctuations, changing interest rates, decreases in residual value and increases in commodity prices). For more details, see the Risks and uncertainties section in Other. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forwardlooking statements set forth herein reflect our expectations as at the date of the Corporation s MD&A and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement. CAUTION REGARDING NON-GAAP EARNINGS MEASURES This presentation is based on reported earnings in accordance with International Financial Reporting Standards ((IFRS) generally accepted accounting principles (GAAP)). It is also based on EBITDA and Free Cash Flow. These non-gaap measures are directly derived from the Consolidated Financial Statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that a significant number of the users of its MD&A analyze the Corporation s results based on these performance measures and that this presentation is consistent with industry practice. ALL AMOUNTS ARE EXPRESSED IN U.S. DOLLARS UNLESS OTHERWISE INDICATED. 2 2

3 Headquartered in Montréal, Canada Revenues: $18.3 billion Workforce: 70,000 Aerospace #3 manufacturer in the world #1 in business jets Revenues: $8.6 billion Workforce: 33,600 Transportation #1 manufacturer in the world Revenues: $9.8 billion Workforce: 36,200 3 NOTE: ALL INFORMATION AS OF DECEMBER 31, ALL MONETARY AMOUNTS EXPRESSED IN 2011 U.S. DOLLARS.

4 BOMBARDIER TRANSPORTATION: A FULL SPECTRUM OF RAILWAY SOLUTIONS Rail Vehicles Transportation Systems Services Rail Control Solutions Propulsion & Controls Bogies Light rail vehicles Metros Commuter trains Regional trains Intercity trains High speed trains Locomotives Monorail systems APM systems Light rail systems ART systems Metro systems Intercity systems Transit Security Fleet management Operations & maintenance Material solutions Vehicle refurbishment Component reengineering Integrated control systems Automatic train protection and operation Interlocking systems Wayside equipment Services Traction converters Auxiliary converters Traction drives Control and communication Portfolio to match entire range of rail vehicles Full scope of service over the lifetime of a bogie 4

5 BOMBARDIER AEROSPACE: LEADING FAMILIES OF BUSINESS AND COMMERCIAL AIRCRAFT BUSINESS AIRCRAFT LEARJET CHALLENGER GLOBAL COMMERCIAL AIRCRAFT Q400 CRJ SERIES C SERIES 5

6 OUR CORE MARKET SEGMENTS ARE EXPECTED TO GROW SIGNIFICANTLY OVER THE NEXT FEW YEARS Business Aircraft Fleet Commercial Aircraft Fleet Units (K) $648B in deliveries Units (K) $630B in deliveries Fleet 2011 Deliveries Retirements Fleet Fleet 2011 Deliveries Retirements Fleet 2031 Business Aircraft Commercial Aircraft 6 SOURCE: BOMBARDIER FORECASTS.

7 THE INDUSTRY S LEADING BUSINESS JET PORTFOLIO LEARJET CHALLENGER GLOBAL 7

8 WE SEE A MARKET OPPORTUNITY OF $648 BILLION OVER THE NEXT 20 YEARS Business Jet Industry Delivery Revenue Forecast ($B), $648B Large $292B (45%) Medium $239B (37%) Light $117B (18%) SOURCE: BOMBARDIER BUSINESS AIRCRAFT MARKET FORECAST

9 BOMBARDIER LEADING INDUSTRY ORDER INTAKE FOR THE FIRST-HALF OF 2012 Estimated Net Orders by OEM, H TOTAL INDUSTRY H1 2012: 234 TOTAL INDUSTRY H1 2011: (74%) 9 * NETJETS ORDER FOR 25 CITATION LATITUDE AIRCRAFT NOT INCLUDED IN CESSNA BACKLOG (SOURCE: TEXTRON DISCLOSURES)

10 KEY CUSTOMERS HAVE PURCHASED ~200 BOMBARDIER BUSINESS AIRCRAFT NETJETS GLOBAL VISTAJET AVWEST GLOBAL NETJETS CHALLENGER 10 INCLUDES NET FIRM ORDERS ONLY, EXCLUDES OPTIONS

11 WE HAVE REMAINED COMMITTED TO OUR INVESTMENTS IN NEW PRODUCT DEVELOPMENT DESPITE THE DIFFICULT ECONOMIC ENVIRONMENT In millions of U.S. dollars Net product development investments 1 (Intangible assets) Fiscal years ended January 31, Calendar years ended December 31, CS100/CS300 Global 7000/ Budgeted 2012 Learjet 85 Learjet 70/ INCLUDES SPEND SUCH AS PROGRAM TOOLING ADDITIONS, R & D EXPENSES SOURCE: BOMBARDIER ANNUAL REPORTS , 2012 BUDGET.

12 CUSTOMER SERVICES: INTEGRATED PRESENCE FUELS VALUE-ADDED BUSINESS CUSTOMER-FACING SERVICES & SUPPORT 24/7 RESPONSE CENTRES, FIELD SERVICES, TROUBLESHOOTING, ENTRY-INTO-SERVICE SUPPORT, LOCAL OFFICES PARTS SERVICES & SMART SERVICES Spare Parts Sales, Exchanges, Component Repair & Overhaul, Component & Maintenance Programs MAINTENANCE SERVICES Network of 9 wholly-owned Service Centres, Response teams, Authorized Service Facilities, Mobile Response teams TRAINING SERVICES 2 Bombardier Training Centres and strong Authorized Training Provider (ATP) relationship with CAE 12

13 BOMBARDIER BUSINESS AIRCRAFT OVERVIEW THANK YOU! QUESTIONS? 2012 PRODUCT UPDATE & VALUATION SEMINAR OCTOBER 4, 2012

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