Mr. Eric Martel reports

BOMBARDIER TO CONFIRM 2025 OBJECTIVES ARE ON TRACK AND WILL FURTHER DETAIL GROWTH LEVERS THROUGH 2030 AS PART OF INVESTOR DAY 2024

Bombardier Inc. will host its investor day on May 1, 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.

Eric 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 preowned 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 Mr. 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-per-cent compound annual growth rate on revenues, which includes an impressive 21-per-cent CAGR for services. Adjusted earnings before interest, taxes, depreciation and amortization grew at a rate of 84 per cent over this time frame with adjusted EBIDTA margin growing by a factor of greater than four times to more than 15 per cent 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, with more than $900-million in free cash flow (FCF) and a net leverage ratio of 2.0 times to 2.5 times.

"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 Mr. 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 three years."

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

Bombardier's revenues from its services business stream have increased by approximately 77 per cent 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 work force 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 preowned 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 preowned program, a turnkey solution to buy preowned Learjet, Challenger and Global aircraft that meet 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 defence 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 return-on-investment-capital-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 capital expenditure investment of approximately $300-million annually. To that end, Bombardier is implementing an 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 Mr. Demosky. "We have also invested in our services business and expanded our network by nearly one million square feet in 2022, and have grown our defence 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, 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 per cent. With this inauguration, Bombardier marks an important milestone and its firm commitment to continue to deliver the best business jets in the world.

Mr. 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 a.m. ET on May 1, 2024.

About Bombardier Inc.

At Bombardier the company designs, builds, modifies and maintains 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, the company is committed to pioneering the future of aviation-innovating to make flying more reliable, efficient and sustainable. And Bombardier is passionate about delivering unrivalled craftsmanship and care, giving its 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 the Bombardier website.

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