In light of recent public comments by Embraer S.A. on data used by Bombardier President and CEO Paul Tellier, Bombardier would like to release the public sources used to support its statement that "over 80%" of Embraer's deliveries over the last three years (2001-2003) received financing from Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
Bombardier Sources for Embraer Regional Aircraft Sales Financing Analysis
For Fiscal Years 2000 to 2003
|BDNE financing (millions $US)||1,4001||1,1552||1,8001||1,8003||4,755|
|Embraer regional jet deliveries (Units)||1574||1534||1214||875||361|
|Embraer regional jet sales ($ millions US)||2,4534||2,5534||2,1104||1,5666||6,229|
|Financing requirement at 85% of aircraft value7 ($ millions US)||2,085||2,170||1,794||1,331||5,294|
|% of Embraer deliveries financed||89.8 %8|
1 Embraer Investor Relations, Investor Meeting Presentation, Nov. 20-21, 2003 (p. 25).
2 BNDES Annual Report, Dec. 31, 2001 (p. 15).
3 Mauricio Botelho as quoted in Jornal do Commercio do Rio de Janeiro article, Dec. 4, 2003.
4 Embraer SEC filing (20-F), Dec. 31st, 2002 (p. 38 and p. 40)
5 Embraer press release, Jan. 15, 2004.
6 Assuming an average selling price of $18M US/aircraft.
7 85% is the maximum loan-to-value ratio of Export Credit Agency financing allowed by OECD rules/WTO decisions.
8 Calculation: 4,755/5,294.
Source data available here
Bombardier remains committed to the ongoing bilateral negotiations between the Brazilian and Canadian governments, which seek to resolve the longstanding dispute over export sales financing.
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2003, were $21.2 billion Cdn and its shares are traded on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F). News and information are available at www.bombardier.com.
N.B. Fiscal year 2002-03 revenues have been restated following the sale of the recreational products business.
Vice President, Communications