Bombardier to Confirm 2025 Objectives Are on Track and Will Further Detail Growth Levers Through 2030 as Part of Investor Day 2024

• With an impressive turnaround plan in full gear, Bombardier maintains clear line of sight on meeting 2025 objectives    
• Growth levers from 2025 to 2030 to focus on continuous product improvements and business segments with a high return-on-invested-capital (ROIC)   
• Diversified revenue streams are building a foundation of resilience and long-term predictability   
• Bombardier President and Chief Executive Officer, Éric Martel, and Executive Vice President and Chief Financial Officer, Bart Demosky, to provide webcast remarks, highlighting strategic initiatives, capital allocation plans and compelling valuation drivers  
• Event hosted inside the company’s new Aircraft Assembly Centre in Toronto, which will be inaugurated later in the day 

Bombardier Inc. (TSX: BBD.B) will host its Investor Day on May 1^st, 2024, at its new state-of-the-art Aircraft Assembly Centre at Pearson Airport in Toronto. During the event – which will be webcast live – Bombardier’s executive leadership will review the company’s strong performance over the past three years and provide an in-depth look at how the company is set to meet its 2025 commitments.   
  
Éric Martel, President and Chief Executive Officer, and Bart Demosky, Executive Vice President and Chief Financial Officer, will be joined by members of Bombardier’s executive leadership team in Toronto to outline the company’s progress on several fronts, including the expansion of Bombardier Defense, growth in Services and in its pre-owned participation, as well as the company’s dedication to sustainability and operational excellence. They will also provide an update on how the company has positioned itself for growth through 2030 by building a resilient business, based on predictable and diversified revenue streams and supported by continued strategic investments.  

“Since starting our turnaround plan in 2020, our teams have delivered textbook-worthy results on all fronts, consistently meeting or surpassing many of our objectives. Bombardier is well on track to meet its 2025 objectives thanks to everyone’s collective focus on executing our plan flexibly, creatively and passionately,” said Martel. “As we now look toward the second half of what has already been a historic decade for the company, we are focused on creating even more value for shareholders by building on a predictable and resilient foundation. Bombardier will have room to grow organically, as well as to deploy capital strategically.”  

On final approach to 2025 objectives after benchmark performance  

Since the end of 2020, through to the end of 2023, Bombardier has recorded a 13% CAGR on revenues, which includes an impressive 21% CAGR for Services. Adjusted EBITDA⁽¹⁾ grew at a rate of 84% over this time frame with adjusted EBIDTA margin⁽²⁾ growing by a factor of greater than 4 times to more than 15% in 2023. This well-rounded performance has put Bombardier on a clear path to achieve its stated 2025 objectives of more than $9 billion in revenues and more than $1.625 billion in adjusted EBITDA⁽¹⁾, with more than $900 million in free cash flow (FCF)⁽¹⁾ and a net leverage⁽²⁾ ratio of 2.0x to 2.5x.   

“Bombardier’s ability to execute to plan has delivered year-after-year growth to be reckoned with, no matter what line of the financial statements you look at,” said Demosky. “Our team has diligently focused on every aspect of our business we control to deliver a company that is not only resilient but can avail itself to multiple paths to continued growth, in many varying market landscapes. We’ve effectively managed debt, enhanced our cost base, penetrated deeper into our addressable service market, grown our participation in defense and, most importantly, stand alone as the only OEM to meet delivery guidance the past 3 years.”  

Diversified revenue streams continue upward momentum with potential to reach 50% of total revenues by 2030 

Bombardier’s revenues from its Services business stream have increased by approximately 77% since 2020, achieved through the expansion of the company’s service centre network and enhanced customer support offerings. This significant growth has been supported by the purposeful and methodical development of the company’s service structure—namely through workforce development, tooling and technology—all to efficiently operationalize the network. The company also continues to elevate its offerings by strategically developing key cloud and big data-based services programs, such as Smart Link Plus, to create new revenue paths that are built around enhancing Bombardier’s product experience. With these strong foundations in place, and a rapidly growing fleet of aircraft in service, the company is approximately one year ahead of its plan to meet the objective to grow its services revenue to $2 billion by 2025, and sees further growth potential, in the mid to high single digits annually through 2030. 

Bombardier also remains focused on growing its activities on the pre-owned market, which continues to represent a steady revenue stream. The company sees the potential to reach $500 million to $1 billion in revenues by 2030. To elevate its offer, Bombardier launched the Certified Pre-Owned program, a turnkey solution to buy pre-owned Learjet, Challenger and Global aircraft that meets the highest quality and safety standard. With this premium program, Bombardier created a new segment that continues to bring customers to the Bombardier family.   

The growth of Bombardier Defense also remains a key pillar for the company to continue on its upward trajectory, and over the past few years, Bombardier has made significant progress. The company’s defense portfolio now has the potential to reach revenues of $1 billion to $1.5 billion by 2030, further establishing its aircraft as future-proofed solutions to the world’s most demanding missions. 

Looking to the future with confidence, ambition and deployable capital   

Bombardier is now a more resilient business and is well positioned for long-term value creation, with several key growth levers at its disposal to help propel the business forward through 2030. The company’s industry-leading product portfolio is well positioned in the growing medium and large business jet categories and is poised to continue to be a significant revenue driver in the years ahead.  

Implementation of a disciplined and ROIC-focused capital allocation framework  

The company remains committed to further reducing debt levels and lower its interest costs while maintaining strong liquidity in the targeted range of $1 billion to $1.5 billion. After reaching its deleveraging objectives, the company will start looking at strategic ways to use its excess available liquidity, such as investing in its capital structure, inorganic growth opportunities and product lineup, all while maintaining an operational CAPEX investment of approximately $300 million annually. To that end, Bombardier is implementing a ROIC-focused approach as the company evaluates deployments beyond 2025. This approach builds on an established framework that has shown strong returns through multiple streams since 2021.  

“Over the past few years, we have made key investments in our business, for example with the introduction of the Bombardier Challenger 3500 and the Bombardier Global 8000 aircraft, set for entry into service in 2025,” added Demosky. “We have also invested in our Services business and expanded our network by nearly 1 million sq feet in 2022, and have grown our Defense business all while following a disciplined and return on invested capital framework. These targeted investments are paying off, and we plan to continue this approach to help us unlock further value while mitigating risks factors and pressure on the balance sheet.” 

Inauguration of Aircraft Assembly Centre at Pearson Airport in Toronto  

On May 1^st, Bombardier will also proceed to the official inauguration of its state-of-the-art manufacturing centre at Pearson airport, where high-precision assembly work for the class-leading Bombardier Global family of aircraft will take place. The new world-class facility was designed with sustainability in mind, and boasts features that will reduce energy consumption by almost 60%. With this inauguration, Bombardier marks an important milestone and its firm commitment to continue to deliver the best business jets in the world.   

Martel concluded: “I also want to highlight that at the core of all our achievements lies our people. Their commitment and skill are unmatched and have helped propel us forward, ensuring we deliver the highest standards to our customers. Our new brand identity, which was unveiled last week, reinforces what we’ve always known to be true, that our people and our customers are at the centre of what we do.”  

Webcast details  

Bombardier’s 2024 Investor Day webcast will begin at 9:00 a.m. ET on May 1, 2024. Those wishing to attend the webcast are asked to sign up on this webpage (in English and in French).   

_{⁽¹⁾ Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures.  
⁽²⁾ Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures.}  
 

About Bombardier 

At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best-performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs.  

For them, we are committed to pioneering the future of aviation—innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it. 

Bombardier customers operate a fleet of approximately 5,000 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico.    

For Information  

Bombardier’s Investor Day 2024 Presentation is available for download on the Investor Relations page on Bombardier’s website. For corporate news and information, including Bombardier’s Environmental, Social and Governance report, as well as the company’s plans to cover all its flight operations with a Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim system visit bombardier.com. Follow us on X @Bombardier.  

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