- Company Holds Investor Day in New York City Today
- CEO and CFO to Provide Liquidity and Cash Flow Objectives
- Executive Leadership Team to Present Company-wide Transformation Objectives
- Segment Presidents to Outline Growth and Value Creation Efforts
- Financial Objectives to Highlight Stabilized Portfolio for Solid Execution by 2018
Bombardier will hold its 2015 Investor Day in New York City starting at 8:00 a.m. today and review five-year strategic objectives for its business segments and overarching transformation initiatives.
“I am very pleased to be joined today by the executive leadership team that I have introduced to you over the past several months,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “I am confident that the strength and industry experience of our management team will contribute to the achievement of the objectives outlined within our transformation and growth strategy.”
“Today’s discussion will provide our stakeholders with an overview of a focused and disciplined vision to further stabilize and de-risk our business, solidify our liquidity, and transform our company through a transition period. These priorities will be implemented in order to successfully position our business segments for margin expansion and improved cash flow generation throughout the plan period,” added Mr. Bellemare.
Planned presentations will include: Alain Bellemare - President and Chief Executive Officer, Lutz Bertling – President, Transportation, Nico Buchholz – Senior Vice President and Chief Procurement Officer, David Coleal - President, Business Aircraft, Fred Cromer – President, Commercial Aircraft, John Di Bert – Senior Vice President and Chief Financial Officer,Jean Séguin – President, Aerostructures and Engineering Services, and Jim Vounassis – Vice President, Operations Strategy and Chief Transformation Officer.
Related presentation materials and webcast information for Investor Day 2015 will be available from 8:00 a.m. atwww.bombardier.com. A replay of the webcast will also be posted on the same website later today. Details of the presentations are as follows:
|8:00 to 9:45 a.m.||Strategic Imperatives||
President and Chief Executive Officer
Vice President, Operations Strategy and Chief Transformation Officer
Senior Vice President and Chief Procurement Officer
|Financial Performance Roadmap||
John Di Bert
Senior Vice President and Chief Financial Officer
|9:45 to 10:15 a.m.||Break|
|10:15 a.m. to 12:30 p.m.||Business Aircraft||
President, Business Aircraft
President, Commercial Aircraft
President, Aerostructures and Engineering Services
As is its usual practice, Bombardier will provide its official guidance for the fiscal year ending December 31, 2016 during its Q4 2015 earnings conference call to be held in February 2016. However, as the Corporation continues to complete its assessment in preparation for its 2016 guidance, Bombardier is hereby providing directional indicators reflecting its initial view of the respective areas of performance for the 2016 fiscal year in relation to the fiscal year ending December 31, 2015.
In short, 2016 will be a year of transition:
- Bombardier expects its liquidity position to be strong, driven by the previously announced investments from the Caisse de dépôt et placement du Québec (CDPQ) in Bombardier Transportation and from the Government of Québec in the C Series program, in each case once completed upon satisfaction of their respective conditions to completion;
- cash usage is expected to improve as a result of Bombardier Transportation deliveries and the previously announced reset of the production rate for the Global 5000 and Global 6000 aircraft;
- the reset of the Global 5000 and Global 6000 production rates will be driving revenue down;
- EBIT will be lower due to these same factors as well as from the C Series program ramp-up;
- 2016 will also be a year of disciplined execution of the Bombardier transformation plan and of its aerospace programs, positioning the Corporation well to gradually rebuild earnings and cash flow towards its 2018 and 2020 objectives, as outlined in the presentation materials posted on Bombardier’s website today.
Additional details, including directional indicators of 2016 performance for the Corporation’s business segments, will be available in the presentation materials posted on Bombardier’s website today.
Bombardier is the world’s leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.
Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability North America Index. In the fiscal year ended December 31, 2014, we posted revenues of $20.1 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
Bombardier, C Series, Global, Global 5000, Global 6000 and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries.
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Manager, Investor Relations
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This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation’s objectives, guidance, targets, goals, priorities, market and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation’s business and operations; the Corporation’s available liquidities and the Corporation’s ongoing review of strategic alternatives, the statement that the strength and industry experience of the management team will contribute to the achievement of the objectives within the Corporation’s transformation and growth strategy; statements regarding the Corporation’s focused and disciplined vision to further stabilize and de-risk the business, solidify liquidity, and transform the Corporation through a transition period; statements regarding priorities to be implemented in order to successfully position business segments for margin expansion and improved cash flow generation throughout the plan period; statements relating to expected liquidity, cash usage, revenue, EBIT, free cash flow, earnings per share, and benefits anticipated from the Corporation’s disciplined execution of its transformation plan and aerospace programs. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from those forecasted. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. Certain important assumptions by management in making forward-looking statements include, but are not limited to: the completion of the corporate reorganization to form Bombardier Transportation; the satisfaction of all conditions to the completion of the investment in Bombardier Transportation by Caisse de dépôt et placement du Québec and previously announced investment in the C Series program by the Quebec Government (collectively, the Investments); the receipt of required third party, regulatory and other approvals, the Corporation’s ability to consummate the Investments; the Corporation’s ability to execute and deliver business model enhancement initiatives and successful transformation plan on a sustainable basis; gross margin and cash improvement from OneBT transformation measures and phase-out of legacy contracts; ability to manage through 2016 headwind from ramping up sales and production for the C Series aircraft, Global 5000 and Global 6000 aircraft production rate reset and interest expense increase; positive tailwind from current exchange rate and introduction of the Global 7000 aircraft. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the respective Guidance and forward-looking statements sections in Aerospace and in Transportation in the Management’s Discussion and Analysis (MD&A) of the Corporation’s financial report for the fiscal year ended December 31, 2014.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, 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 and rail industry, political instability and force majeure), operational risks (such as risks related to developing new products and services; fixed-price commitments and production and project execution; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; the environment; dependence on certain customers and suppliers; human resources), financing risks (such as risks related to liquidity and access to capital markets, retirement benefit plan risk, exposure to credit risk, certain restrictive debt covenants, financing support provided for the benefit of certain customers and reliance on government support); the conditions to completion of the Investments not being satisfied; failure to receive third party, regulatory and other approvals; changes in the terms of the Investments; and market risks (such as risks related to foreign currency fluctuations, changing interest rates, decreases in residual values and increases in commodity prices). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2014. 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 management’s expectations as at the date of this press release 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. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, EBIT before special items and EBITDA before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are mainly derived from the interim consolidated financial statements but do not have standardized meanings prescribed by IFRS; therefore, others using these terms may define them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of the Corporation’s interim financial report with enhanced understanding of the results and related trends and increases the transparency and clarity of the core results of the business. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and each reporting segments' Analysis of results sections in the Corporation’s MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.