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THE EVOLUTION OF MOBILITY:
CSERIES Update
PHILIPPE POUTISSOUVICE-PRESIDENT MARKETING
BOMBARDIER COMMERCIAL AIRCRAFT
FEBRUARY 9TH, 2014
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FORWARD-LOOKING STATEMENTS
This presentation includes forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “plan”, “foresee”, “believe” or “continue”, the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require Bombardier Inc. (the “Corporation”) to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause the Corporation’s actual results in future periods to differ materially from forecasted results. While the Corporation considers its 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, please refer to the respective sections of the Corporation’s aerospace segment (“Aerospace”) and the Corporation’s transportation segment (“Transportation”) in the fiscal year 2012 MD&A.
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 the Corporation’s business environment (such as risks associated with the financial condition of the airline industry), 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, 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 the fiscal year 2012 MD&A. 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 forward-looking statements set forth herein reflect the Corporation’s expectations as at the date of this presentation and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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BOMBARDIER – EVOLUTION OF MOBILITY
3Fiscal year ended December 31, 2012
The World’s OnlyManufacturer ofTrains and Planes
Bombardier Transportation
Revenues: $8.1 billion Order backlog : $33.7 billion Employees : 36,000
Revenues: $8.6 billion Order backlog : $32.9 billion Employees : 35,500
Bombardier Aerospace
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BOMBARDIER – OVER 6,800 AIRCRAFT FLYING
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CHALLENGER GLOBAL LEARJET
Q-SERIES CRJ SERIES CSERIES
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TREND #1: EVOLUTION OF COMMERCIAL AIR TRAVEL
Forecast
Commercial Air Travel Demand Grows with GDP
1970-2032
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TREND #2: GLOBALIZATION OF DEMAND
~80%
1993-2012 DELIVERIES - ALL MARKET SEGMENTSIN WHICH BOMBARDIER COMPETES
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TREND #2: GLOBALIZATION OF DEMAND
~34%
2013-2032 FORECAST - ALL MARKET SEGMENTSIN WHICH BOMBARDIER COMPETES
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TREND#3: GROWTH MARKETS NEED SMALLER AIRCRAFT
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MATURE MARKET GROWTH MARKET
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TREND #4 – NO GAP IN THE MARKET DEMAND
9 Mature market example based on USA data. Bombardier analysis.
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KEY OPPORTUNITIES IN INDIA
10* PDEW = Passengers Daily Each Way | Source : PaxIS data from DIIO MI
MANY UNSERVEDSECTORS WITH MORE
THAN 75 PDEW*
Airline Daily Frequency
Market Share
X 2 12.7%Y 4 87.3%
FREQUENCY IS KEY TO GAIN OR MAINTAIN
MARKET SHARE
Q400 NEXTGEN IS A KEY TOOL TO OPEN NEW
ROUTES IN INDIA
BOMBARDIER OFFERS SOLUTIONS TO INDIA
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KEY OPPORTUNITIES IN CHINA
11 Source: CAAC
55 NEW AIRPORTSBETWEEN 2011 & 2015
126 X TIER 3 AIRPORTS
57 X TIER 1 & 2 AIRPORTS
NEXT INVESTMENT SPOTLIGHT : REGIONAL AVIATION
CKG
KWE
CHINA EXPRESS
CRJ900 fleet now up to 8 aircraft,
serving 30 routes.
Flown over 600,000
passengers.
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OPEN SKIES AGREEMENTS CREATE HUGE OPPORTUNITIES IN SMALLER MARKETSKEY OPPORTUNITIES IN KOREA
12 * Open Skies Korea – China : arrangement only covers Hainan and Shandong provinces
CSERIES: RIGHT CAPACITY TO EXPAND NETWORK +
PREMIUM CABIN
SHIFT TOWARDS DIRECT FLIGHTS AND INCREASED
FREQUENCY
EVOLVING KOREAN OPEN SKIES AGREEMENTS :
2009 TO PRESENT
New City Pairs Created by Increased Liberalisation
*
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FLY ANYWHERE, ANYTIME WITH THE MOST PROFITABLE AIRCRAFTBOMBARDIER SOLUTIONS : FREQUENCIES BUILDER
13Assumptions: Type Spec Aircraft Configuration. For more details please visit: http://cseries.com/ - http://crjnextgen.com/ - http://q400nextgen.com
Optimized regional network solution
Optimized short-haul solution
Optimized 100- to 149-seat market segment solution
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PROVIDING REAL BENEFITSCLEAN-SHEET DESIGN OPTIMIZED FOR 100-TO 149-SEATS
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SMART SELECTION OF TECHNOLOGYCSERIES • 100% NEW AIRCRAFT
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Fly-By-Wire
Improving efficiency with validated advanced technology…
Electric Brakes
Composite Wing
Advanced Al-Li Fuselage
Advanced Cockpit
Geared Turbofan
NiCad Battery
Air Management
System
… and also relying on current best in class
Hydraulic Systems
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50 200
A320A321
Airbus
737-900
Boeing
100 150
737-700
A319
737-800
E195
E170
E175E190Embraer
New Entrantabove 150 Seats
Bombardier
New entrants
CS100
CS300CRJ1000
CRJ900CRJ700
Q400
CSERIES: OPTIMIZED FOR THE 100- TO 149- SEAT SEGMENT
New Entrantsbelow 100 Seats
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50 200
A320A321
Airbus
737-900
Boeing
100 150
737-700
A319
737-800
E175E190Embraer
New Entrantabove 150 Seats
Bombardier
New entrants
CS100
CS300
neoneo
neo
-7 MAX
-8 MAX-9 MAX
E2E2
E195E2
CRJ1000
CRJ900CRJ700
Q400
New Entrantsbelow 100 Seats
CSERIES: OPTIMIZED FOR THE 100- TO 149- SEAT SEGMENT
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CSERIES AIRCRAFT : BEST OF BOTH WORLDS
Note: Based on a 500-NM trip in a North American environment (Fuel price: $3.20/US gallon). neo : new engine option. Source: Companies’ website, Bombardier analysis.
CS100
CS300
E190
A320neo
A319neo
Better trip cost than smaller regional jets
Same seat cost as next larger single-aisle aircraft
E195
737-700
A319
A320
A318
737-600
Cos
t per
Sea
t
Cost per Trip
Cash-operating-cost comparison
CSERIES : 15% CASH-OPERATING-COST ADVANTAGE
Bombardier products
Products in service
Products in development
Products in lower-seat segment
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INCREASING OUR PRESENCE ALL AROUND THE WORLD CSERIES MARKET PENETRATION
19* Letter of intent (LOI) | ** Conditional orders | 15 Bombardier customers + 2 lessees via IFC = 17*** As of January 16th 2014, following Al Qahtani Aviation Company (SaudiGulf) press release.
LUFTHANSA / SWISS
MALMÖ AVIATION
UP TO 445 COMMITMENTS ***
REPUBLIC AIRWAYS
CDB LEASING CO.LTD.**
LEASE CORPORATION (LCI)
ATLASJET *
ILYUSHIN FINANCE CORPORATION (IFC)
PRIVATAIR
AIR BALTIC
PORTER AIRLINES**
GULF AIR
ODYSSEYAIRLINES
UTAIR -UKRAINE
VIMAIRLINES
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IRAQI AIRWAYS
KOREAN AIR
CUSTOMERS AND LESSEES WORLDWIDE
AL QAHTANI AVIATION(SAUDIGULF)
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3955
198
25
A319neo 737 MAX 7 CS100/300 E195 E2
BY FAR THE LARGEST NUMBER OF ORDERS AND CUSTOMERSCSERIES DOMINATES THE 100-TO 149-SEAT CATEGORY
20As of February 06th, 2014Data Source: pdxlight and Bombardier
100-149 Seat Firm Orders 100-149 Seat Customers
2 2
17
1
A319neo 737 MAX 7 CS100/300 E195 E2
of the firm orders62% of the of the
customers81%
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21PRIVATE AND CONFIDENTIAL© Bombardier Inc. or its subsidiaries. All rights reserved.
CSERIES NOW FLYING
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CSERIES : 7 AIRCRAFT IN VARIOUS STAGES
PRIVATE AND CONFIDENTIAL© Bombardier Inc. or its subsidiaries. All rights reserved.
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23© Bombardier Inc. or its subsidiaries. All rights reserved.
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