Bombardier Announces Financial Results for the First Quarter Ended March 31, 2013

May 9, 2013 — Montréal
Corporate

(All amounts in this press release are in U.S. dollars unless otherwise indicated. This press release contains both IFRS and non-GAAP measures. Non-GAAP measures are defined and reconciled to the most comparable IFRS measures in the Corporation’s MD&A. See Caution regarding Non-GAAP measures at the end of this press release. Comparative figures have been restated. See Accounting and reporting developments in the Corporation’s MD&A.)

Revenues of $4.3 billion, compared to $3.5 billion last fiscal year
EBIT before special items(1) of $240 million, or 5.5% of revenues, compared to $188 million, or 5.4%, last fiscal year
EBIT of $240 million, or 5.5% of revenues, compared to $211 million, or 6.1%, last fiscal year
Adjusted net income(1) of $156 million, compared to $150 million last fiscal year
Adjusted earnings per share(1) of $0.08, same as last fiscal year
Free cash flow usage(1) of $590 million, compared to a usage of $695 million last fiscal year
Available short-term capital resources of $5.1 billion including cash and cash equivalents of $3.7 billion as at March 31, 2013, compared to $4.0 billion and $2.6 billion respectively, as at December 31, 2012
Backlog of $63.0 billion as at March 31, 2013, compared to $64.9 billion as at December 31, 2012
Issuance of $2 billion of unsecured Senior Notes
(1) See Caution regarding Non-GAAP measures at the end of this press release.

Bombardier today reported its financial results for the first quarter ended March 31, 2013. Revenues totalled $4.3 billion for the first quarter ended March 31, 2013, compared to $3.5 billion for the same period last fiscal year.

For the first quarter ended March 31, 2013, earnings before financing expense, financing income and income taxes (EBIT) before special items totalled $240 million, or 5.5% of revenues, compared to $188 million, or 5.4%, for the same period last year.

On an adjusted basis, net income amounted to $156 million, or earnings per share (EPS) of $0.08, for the first quarter ended March 31, 2013, compared to $150 million, or EPS of $0.08, for the same period the previous year.

For the three-month period ended March 31, 2013, free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totalled $590 million, compared to a usage of $695 million for the same period the previous year. Available short-term capital resources of $5.1 billion include cash and cash equivalents of $3.7 billion as at March 31, 2013, compared to $4.0 billion and $2.6 billion respectively as at December 31, 2012. The overall backlog reached $63.0 billion as at March 31, 2013, compared to $64.9 billion as at December 31, 2012.

“We had a good first quarter, with an overall increase in revenues of 25%,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. “Aerospace is showing increased deliveries, revenues and EBIT, and the CSeries tests are progressing well with first flight next month.”

“Transportation also saw an increase in revenues and EBIT, and received a good level of new orders across all divisions and key markets, totalling $2 billion. We expect an increase in revenues over the course of the year, while making good progress towards the group’s EBIT target of 8% by 2014. With our strong overall backlog of $63 billion and state-of-the-art products coming into service in the next few years, we’re very well positioned for solid future growth,” concluded Mr. Beaudoin.

Bombardier Aerospace

Bombardier Aerospace’s revenues amounted to $2.3 billion for the three-month period ended March 31, 2013, compared to $1.5 billion for the same period last fiscal year. EBIT before special items totalled $101 million or 4.5% of revenues for the first quarter ended March 31, 2013, compared to $66 million, or 4.4%, last fiscal year.

Free cash flow usage totalled $461 million (including net additions to property, plant and equipment (PP&E) and intangible assets of $503 million) for the first quarter ended March 31, 2013, compared to a usage of $572 million (including net additions to PP&E and intangible assets of $372 million) for the same period last fiscal year.

A total of 53 aircraft were delivered during the first quarter ended March 31, 2013, compared to 37 for the same period last fiscal year, including 39 business aircraft, compared to 29 for the same quarter last fiscal year.

Bombardier Aerospace signed a purchase agreement with Russia’s Ilyushin Finance Co. (IFC) to acquire 32 CS300 aircraft, with options for an additional 10. This agreement is subject to approval by the company’s shareholders and follows a letter of intent signed in 2011. Based on the list price, the conditional order for 32 aircraft is valued at $2.6 billion. Additionally, Danish lessor Nordic Aviation Capital purchased four Q400 NextGen aircraft, bringing its Q400 aircraft fleet to 43.

Subsequent to quarter-end, in April 2013 Porter Airlines was identified as the previously unidentified Americas-based CSeries aircraft customer when it announced the conversion of its letter of intent to a conditional agreement for up to 30 CS100 aircraft. This $2.08 billion-commitment, based on list price, makes Porter Airlines the Canadian CSeries aircraft launch customer. As at March 31, 2013, commitments for the CSeries totalled 388, including 145 firm orders from nine customers in eight countries.

Bombardier Aerospace’s backlog totalled $32 billion as at March 31, 2013, compared to $32.9 billion as at December 31, 2012.

Bombardier Transportation

Bombardier Transportation’s revenues amounted to $2.1 billion for the three-month period ended March 31, 2013, compared to $2.0 billion for the same period last year. EBIT totalled $139 million, or 6.7% of revenues, compared to $122 million, or 6.2%, for the same quarter the previous year. Free cash flow usage totalled $73 million for the quarter ended March 31, 2013, compared to a usage of $85 million for the same period last fiscal year.

New orders reached $2.0 billion (book-to-bill ratio of 0.9), compared to $1.2 billion for the same quarter last fiscal year. The order backlog totalled $31.0 billion as at March 31, 2013, compared to $32.0 billion as at December 31, 2012 (comparative numbers have been restated to exclude Bombardier Transportation’s proportionate share of joint ventures’ backlog). The $1 billion or 3% decrease in order backlog is mainly due to the weakening of some foreign currencies versus the U.S. dollar as at March 31, 2013 compared to December 31, 2012, mainly the euro and pound sterling.

The group’s new orders included a variation order for 170 additional cars under a framework agreement with Siemens AG to develop and supply important components for the next ICx high speed trains for Deutsche Bahn, valued at $440 million.

In January and April 2013, Bombardier Transportation’s partner, CSR Nanjing Puzhen Rolling Stock Co. Ltd from China, won orders for 18 low-floor trams and 15 catenary-free low-floor trams, which will be built based on the group’s FLEXITY 2 technology. The vehicles will be equipped with the innovative FLEXX urban 3000 bogies and MITRAC 500 propulsion and control system. Bombardier Transportation will support the projects under a technology license agreement signed in 2012. The latter is the first order worldwide for a catenary-free tram equipped with the new light and long-life Bombardier PRIMOVE battery.

After quarter-end, Bombardier Transportation signed agreements with Russian rail manufacturer Uralvagonzavod (UVZ) establishing a partnership for joint development of metros for the market in Russia and the CIS.