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2
September 2011
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 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
Forward-looking statements sections in BA and BT in the MD&A of the Corporation’s annual report for fiscal year 2011.
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 airline industry’s financial condition), operational risks (such as risks involved in developing new products
and services, risks in doing business with partners, risks relating to product performance warranty and casualty claim losses,
to regulatory and legal proceedings, to environmental and health and safety, to our dependence on certain customers and
suppliers, to human resources, to fixed-price commitments and to production and project execution), financing risks (such as
risks relating to liquidity and access to capital markets, to the terms of certain restrictive debt covenants, to financing support
provided on behalf of certain customers and to reliance on government support) and market risks (such as risks relating to
foreign currency fluctuations, to changing interest rates and commodity prices risks). For more details, see the Risks and
uncertainties section in Other in the MD&A of the Corporation’s annual report for fiscal year 2011 .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 our 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.
All amounts are expressed in 2011 U.S. dollars unless otherwise stated
Forward-looking statement
3
Business jet market drivers
4
The business aviation value proposition
An increasingly global and
competitive business environment
requires customized travel solutions
Business aircraft provide an optimal
working environment in a private
setting
Business aircraft offer substantial
time-savings and productivity
benefits
Activities of business jet owners
contribute significantly to economic
growth
5
Long-term business aircraft market drivers remain solid
Market Driver 10-Year Outlook Outlook
Globalization of
Trade
As trade barriers fall and global mobility increases, the business
community requires flexible travel means like business aviation to
efficiently link all workplaces and drive economic growth.
Emerging
Markets
Accelerated wealth creation coupled with aviation infrastructure
development should help business jets penetrate emerging markets.
New aircraft
programs
New aircraft programs stimulate demand. There are numerous aircraft in
development scheduled for potential entry into service over the next
decade.
Replacement
demand
With a worldwide installed base of over 14,700* aircraft and average
aircraft replacement occurring 5 to 10 years after initial delivery, the
market should continue to show vitality.
* Excluding very light jets and large corporate airliners
6
52%
72%67%
58%53%
43%
35%
29%33%
38%
10%
9% 19%
15%
19%
17% 30%
34%32% 23%
11%
6%
3%
6% 8%
12%
10%11% 10%
7%
4% 2%
3% 5%
6%4% 6% 5%
10%
7%2%
3% 1%
3%4% 2% 4%
1%
1%
2%
8% 8%11%
9%7% 7%
1%
0%
2% 2%2%
1%
2% 2%0%
0%1% 2%
2% 1%1%
2% 2%8%
1% 3% 3%5% 6% 4% 6% 5%
6%
6%
4%
6%
9%
4%
7%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Asia Pacific
India
China
Russia & CIS
Africa
Middle-East
Latin America
Europe
North America
BUSINESS JET INDUSTRY GROSS ORDERS
Units, % of world total, 2001-2010
International markets are the source of most orders,
with Asia accounting for a greater share in 2010
Source: Bombardier analysis based on OEM disclosures, excluding very light jets and large corporate airliners
7
44
Source: IHS Global Insight, November 2010
2010 WORLD REAL GDP GROWTH
> 6%4 to 6%2 to 4%0 to 2%< 0%
+3.8%+3.8%WorldWorld
Global Economic ActivityThe world’s strongest economic growth continues to be in Asia
Source: IHS Global Insight, Feb. 2010
2010 WORLD REAL GDP GROWTH World % Growth +3.8%
8
Pre-owned business jet inventories are improving,
scarcity now occurring in the Large size category
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Q2
08
Q3
08
Q4
08
Q1
09
Q2
09
Q3
09
Q4
09
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Q2
11
Light
Medium
Large
15.2%
12.7%
6.1%
Historic
Average
Range
PRE-OWNED INVENTORY BY SIZE CATEGORY % of fleet, Q2-2008 - Q1-2011
9
Buenos Aires
Miami
Detroit Toronto
Boston
Atlanta Los Angeles
Dallas
Moscow
San Francisco
Philadelphia Osaka Seoul
Shanghai
Hong Kong
Wash.
New York Chicago
London
Tokyo
Mexico City
Paris
2025 GDP in $bn
400 2000
Seattle
Sao Paulo
Rio de Janeiro
Beijing
Delhi Guangzhou
Mumbai
Houston
TOP 25 CITIES IN TERMS OF GDP IN 2025
Over the next 15 years, the emergence of China and India should
translate in stronger demand for long-range aircraft
Newly IN
Newly OUT
Source: PriceWaterhouseCoopers UK Economic Outlook November 2009
10
China experienced a rapid increase in business jet
deliveries during 2010
0
10
20
30
40
50
60
2006 2007 2008 2009 2010
CHINA
INDIA
REST OF ASIA PACIFIC
Source: Ascend. Excludes very light jets and large corporate airliners
BUSINESS JET DELIVERIES
Units
11
182
107
72 7262
4936 4
428
192178
11695
86
56 53
427
6
0
100
200
300
400
500
North
America
Europe China Russia &
CIS
Asia exc
China
Middle
East
India Latin
America
Africa
2010
2011
NUMBER OF BILLIONAIRES Unit & % Change 2010-2011
Sources: Forbes.com February 2010 and March 2011.
Number
of
Billionaires
% Change
2011 vs 2010 0% 5% 66% 61% 32% 39% 14% 47% 50%
World 2010: 1,011
World 2011: 1,210
China is experiencing a dramatic increase in the number
of billionaires in 2011
12
Business jet market forecast 2011-2030
Download the entire 2011 Business Aircraft Market Forecast at www.bombardier.com
13
0
200
400
600
800
1000
1200
1400
1600
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
BUSINESS JET INDUSTRY 20-YEAR DELIVERIES OUTLOOK Units, calendar years, 1991-2030
Source : Bombardier Business Aircraft Market Forecast 2011-2030
1991-2000
3,600 units
2001-2010
6,400 units
2011-2020
10,000 units
2021-2030
14,000 units
Worldwide business jet historic and forecast deliveries
14 Source: Bombardier forecast
INDUSTRY REVENUES BY CATEGORY
$US billion, Constant 2010, Forecast 2011-2030
INDUSTRY DELIVERIES BY CATEGORY
Units, Forecast 2011-2030
30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11
0
500
1,000
1,250
750
250
1,500
30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11
40
35
30
25
20
15
10
5
0
Units Value
24,000
11,000
7,750
5,250
$626B
$130B
$236B
$260B
Total 20 Yrs
Large
Medium
Light
24,000 business jet deliveries worth $626 billion forecast
worldwide over the next 20 years
15
China will become the 3rd largest market for business jet
deliveries
Source: Bombardier Business Aircraft Market Forecast 2011
Total World
2011-2020 10,000
2021-2030 14,000
15
16
14,700
21,600
30,900
10,000
14,000
3,100
4,700
Fleet 2010 Deliveries Retirements Fleet 2020 Deliveries Retirements Fleet 2030
World fleet forecast to grow to 30,900 by 2030, CAGR1 of 3.8%
WORLD FLEET EVOLUTION FORECAST
Fleet, Deliveries, Retirements; 2010-2030
Sources: Ascend, Bombardier forecast. Excludes very light jets and large corporate airliners
Note: 1 CAGR = Compound Annual Growth Rate
17
China and India will move up the ranks in terms of
business jet fleet size by 2030
WORLDWIDE DISTRIBUTION OF A/C
FLEET IN 2010
350
380
380
1,400
1,800
9,700
110
150
320
India
China
Africa
Asia Pacific
Middle East
Russia & CIS
Latin America
Europe
North America 66%
12%
10%
3%
3%
2%
% of
Fleet
1%
1%
WORLDWIDE DISTRIBUTION OF A/C
FLEET IN 2030
950
1,145
1,400
1,415
1,765
2,470
2,735
5,190
Africa
Asia Pacific
India
Middle East
Russia & CIS
China
Latin America
Europe
North America
3%
45%
17%
9%
6%
5%
5%
% of
Fleet
4%
3%
8%
Total Fleet Size of 14,700 Total Fleet Size of 30,900
Source: BBA market forecast
CAGR: 6%
CAGR: 6%
CAGR: 14%
CAGR: 7%
CAGR: 8%
CAGR: 15%
CAGR: 3%
CAGR: 5%
CAGR: 2%
18
1
10
100
1000
10000
100 1,000 10,000 100,000
GDP per Capita (USD, Log Scale)
Fle
et
pe
r 1
00
Millio
n P
op
ula
tio
n (
Lo
g S
ca
le)
2nd driving
force:
removal of
barriers
1st driving
force: GDP
growth
NORTH AMERICA
LATIN AMERICAEUROPE &
RUSSIA
ASIA
MIDDLE-EAST &
AFRICA
Average
growth path
PENETRATION RATES BY REGION
Fleet per Capita vs. GDP1 per Capita, 1960-2010
Source: Fleet from Ascend, GDP and Population from IMF
Our market forecast is based on regional penetration rates
NORTH AMERICA
LATIN AMERICA
MIDDLE-EAST &
AFRICA
ASIA
EUROPE &
RUSSIA
1st driving
force: GDP
growth
2nd driving
force:
removal of
barriers
Average
growth path
Note: 1 GDP = Gross Domestic Product
19
1
10
100
1000
100 1,000 10,000 100,000
GDP per Capita (USD, Log Scale)
Fle
et
pe
r 1
00
Mill
ion
Po
pu
lati
on
(L
og
Sc
ale
)
Actuals
Forecast
Sources: Ascend, IMF, IHS Global Insight, UN population project,
Bombardier forecast, including very light jets
WORLD BUSINESS JET PENETRATION FORECAST
Fleet per capita vs. GDP1 per capita, Actual 1960-2010, Forecast 2011-2030
Business jet penetration will continue worldwide
20-year CAGR2 = 3.8%
20-year fleet per million population = from 260 to
460 aircraft per 100 million in population
Note: 1 GDP = Gross Domestic Product 2 CAGR = Compound Annual Growth Rate
20
1
10
100
1000
10000
100 1,000 10,000 100,000
GDP per Capita (USD, Log Scale)
Fle
et
pe
r 1
00
Millio
n P
op
ula
tio
n (
Lo
g S
ca
le)
JAPANEMERGING ASIA
OCEANIA
BUSINESS JET PENETRATION FORECAST – ASIA PACIFIC
Fleet per capita vs. GDP per capita, 1960-2030
Sources: Ascend, IMF, IHS Global Insight, UN population project, Bombardier forecast. Includes very light jets
Business jet penetration rates vary within the Asia region
21
Sources: Ascend, Bombardier forecast. Excludes very light jets and large corporate airliners
150
1,100960
10
30
2,470
1,400
Fleet 2010 Deliveries Retirements Fleet 2020 Deliveries Retirements Fleet 2030
FLEET EVOLUTION FORECAST – CHINA
Fleet, Deliveries, Retirements; 2010-2030
China will lead the world in business jet fleet growth rate;
15% CAGR with 2,360 business jet deliveries 2011-2030
22
Bombardier has progressively increased its forecast for
China to reflect current market dynamism and progress
Bombardier's 10-year China
business jet delivery
forecast over last the past
three years
300
600
960
2009 2010 2011
Edition of Business Aircraft Market Forecast
Key Market Size Limitations
I. Airport Access
II. Airspace Restrictions
III. Airport Ramp Space
IV. Taxes
V. Greater use as a “Company”
aircraft
x2
+60%
Changes in market limitations significantly impact
China’s potential business jet fleet size
23
110
10
30
1,400
485
945
385
Fleet 2010 Deliveries Retirements Fleet 2020 Deliveries Retirements Fleet 2030
FLEET EVOLUTION FORECAST – INDIA
Fleet, Deliveries, Retirements; 2010-2030
Sources: Ascend, Bombardier forecast. Excludes very light jets and large corporate airliners
India will have the second highest business jet fleet growth
rate; 14% CAGR with 1,330 business jet deliveries 2011-2030
24
Sources: Ascend, Bombardier forecast. Excludes very light jets and large corporate airliners
350
660
370
60
120
1,145
605
Fleet 2010 Deliveries Retirements Fleet 2020 Deliveries Retirements Fleet 2030
FLEET EVOLUTION FORECAST – REST OF ASIA PACIFIC
Fleet, Deliveries, Retirements; 2010-2030
Rest of Asia Pacific will have a solid business jet fleet growth
rate; 6% CAGR with 975 business jet deliveries 2011-2030
25
Bombardier Business Aircraft
26
LEARJET 40 XR LEARJET 45 XR LEARJET 60 XR
GLOBAL 6000
With 12 programs, Bombardier has the industry’s
strongest product portfolio
LEARJET 85
GLOBAL 7000 GLOBAL 8000 GLOBAL 5000
CHALLENGER 300 CHALLENGER 605 CHALLENGER 850 CHALLENGER 870
27
8% 8% 8% 8%
13%18%
9%
31% 31% 32% 31%
22%16% 19%
17% 15% 13% 14% 14%12% 8%
7% 9%4%4%3%
0%
25%
50%
75%
100%
Delivery
Market Share (%)
YTD ’11 ’10
28%
19%
’09
16%
3%
’08
26% 30%
17%
’07
27%
16%
27%
15%
’05
28%
13%
’06
3%
22%
33%
World Delivery Market Share World Revenue Market Share
11% 12% 13% 13%20%
25%
14%17% 17% 17% 17%11%
6% 7%9% 8% 7% 8% 8% 6% 4%
4% 4% 5% 5% 4%
0%
25%
50%
75%
100%
’05
31%
27%
’07
30%
27%
’06
32%
27%
Revenues
Market Share (%)
YTD’11 ’10
35%
25%
3%
’09
32%
26%
3%
’08
31%
27%
35%
36%
Bombardier is the worldwide business jet industry leader;
In China, we have 53 business jets in service and 29% market share
Sources: GAMA and B&CA list price; Excluding VLJ’ & Mega Large, updated
to Q2 2011. Ascend for China market data, as of June 30, 2011
* *
* 2010 & 2011Deliveries as per IFRS * 2010 & 2011 Revenues as per IFRS
28
President Hu Jintao visits Bombardier in Toronto – June 2010
29
2008 Today 2013
Regional Support Offices 5 7 14
Parts distribution centers /
depots total Data non
available
$ 66
$499
13
BBD Service Centers 7 9 10
Authorized Service Facilities 47 51 62
Training Centers 13 sims 17 sims 23 sims
We are expanding our Customer Services network in Asia BOMBARDIER 2013 NETWORK
THE AMERICAS EUROPE/ME/AFRICA ASIA
30
Summary
Asia is now the key growth market for business jets
Over 5,600 business jet deliveries forecast into the entire region, 2011-2030
23% of forecast World deliveries
China moves to the number 1 position in terms of business jet fleet
growth rate and number 3 in terms of total deliveries, 2011-2030
India will also grow strongly, with solid growth for the rest of Asia
Continued advancement in infrastructure and regulatory policy
required to make the forecast a reality
Bombardier has a strong presence here and is investing heavily in
this market
Thank you! Questions?