Bombardier Standard Presentation

June 26 June Hack Jonathan A By: Presentation Competitive create help can How PRESENTATION KEYNOTE BOMBARDIER Regional th , 2018 , Advantage

Collaboration

Global

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. Agenda: What we will coverAgenda: What will we Competitiveness / Global Collaboration Regional 2 BOMBARDIER’SONTARIOIN ACTIVITYENGAGEMENT& OUR ASTUDY OF GLOBALLEADINGREGIONSECONOMIC & THEIR ACTIVITY CANADIANMANUFACTURING: A PERSPECTIVE & BOMBARDIER’S PLACE HISTORY / CURRENT ORGANIZATION STRUCTURE / INNOVATION CULTURE BOMBARDIER: OF OVERVIEW

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. REVENUES Global aerospace and rail transportation leader with scale and diversified revenues and withscale diversified leader and transportation rail aerospace Global structure Corporate 4 TRANSPORTATION $8.5B Note: Revenues the fiscal are for

Revenues of $16.2B in 2017 in $16.2B of Revenues year BUSINESS

ended $5.0B December

AIRCRAFT

31, 2017.

COMMERCIAL AIRCRAFT $2.4B

AEROSTRUCTURES $1.6B

For the fiscal year ended December 31, 2017 ended December 31, yearfiscal the For As at December As at 31, 2017

[CATEG

NAME] ORY ORY 43% [CATEG NAME] ORY ORY 7% 1 69,500 employees69,500

Other 2%

[CATEG NAME] ORY ORY 33%

10% US

Revenues

[CATEG NAME] ORY ORY 14% 2

$16.2B in revenues in $16.2B [CATEG NAME]

ORY ORY 46%

[CATEG NAME] ORY ORY 6%

[CATEG

NAME] ORY ORY 35%

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. 6 73 production and engineering sites in 28countries in sites engineering and 73 production presence worldwide A . . . . Headquarters Note: Engineering Services Services Engineering Aerostructures Commercial Aircraft Aircraft Business Inc. Bombardier Number Montr

of production and engineering sites as at as engineering sites production and of éal

of:

and and

December

31, 2017. Headquarters Transportation

Berlin

1986 1942 . . . . 1974 snowmobiles personal and passenger Development of Company start market transit mass into Diversification acquisition Canadair through aerospace into Entry -93 -73 -85

- up 1993 2015 2003 ...... Challenger 300 Challenger AVENTRA Transportation CDPQ Québec C C of Sale ZEFIRO centres aerospace manufacturing New , CRJ1000 business Recreational Products of Sale Adtranz Tilting train,AGC CRJ -2003 -… -2015

Series Series

Series

investment

Flexjet

in Mexico in and Morocco , acquisition Government ,

partnerships ECO4

Global 7000/8000Global CRJ &

, Global ExpressGlobal

activities , PRIMOVE

Q400 Next Gen

in in

and Airbus

with

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. 8 We have secured key strategic orders worldwide against keycompetitors against worldwide orders We keystrategic secured have BT:Presence… Global A 4. 3. 2. 1. In consortium with Alstom with Alstom consortium In with RailwayChina (CRC) Corp. to supply 15 CRH380D very- high Bombardier with Alstom consortium In 1 st

call $370M SNCF for 52 $ Normandy for cars Premium OMNEO deck double 40 $280M incl. SIG SIG 30 & incl. FLEXITY $393M contract 20- 125 $328M Metrolinx 620M ( - off order under a framework contract for up to 300 TALENT 3 valued at a list price of approximately $1.9B approximately of price list a at 3 valued TALENT 300 upto for contract a framework under off order Francilien year BiLevel Sifang (2016) (2016) (2016) (2016) (2016)

2016) maintenance for

for Edmonton Edmonton for

LNVG cars Transportation, a Chinese entity in which Bombardier holds a 50 % interest, has been awarded a contract a contract awarded been has % interest, a 50 holds which Bombardier in entity a Chinese Transportation,

trains trains

year O&M

for

– –

BT’s share valued at $853M at valued share BT’s M $395 at valued share BT’s

$156M ÖBB (Austrian Railways) (Austrian ÖBB for 3 trains 21 TALENT $1.2B Anglia East ABELLIO 665 (2016) AVENTRA (2016)

Cars for Cars speed trains trains speed at valued $381M

441 double deck cars for for cars deck 441 double 445 double deck cars cars deck double 445

$ 1.22B $1.4B

for SNCB for (2017) SNCF (2015) M7 M7 2

62 for Transport for London, London, for Transport for 156 35 years of maintenance maintenance of years 35 180 TRAXX TRAXX International Airport International FLEXITY AVENTRA for Israel Railways Israel for Transport Authority Transport INNOVIA 15 CRH380D for for 15 CRH380D Chicago O’Hare O’Hare Chicago China Railways $262M $381M $180M $480M Locomotives Locomotives $558M for Vienna for

APM for for APM cars and cars ( (2015) (2015) (2015) 2015) ( ( 2015) 2015)

TRANSPORTATION

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. ACQUISITION……APROUD INNOVATION LEGACY BOMBARDIER’S AEROSPACE ACTIVITY – than 150 patents. 150 patents. than more held He 1962. in Wichita Bill Lear subsidiary was created in 1928. in created was subsidiary The Canadian aircraft. of number large a built and designed company his and he where Britain, in Company Aircraft Havilland De Havilland in the de 1920 formed de Havilland GeoffreySir

started Learjet in in Learjet started

The Short brothers Short The license from Wilbur Wright six Wright planes in Britain. Wright Britain. Wilbur Wrightplanes in six license from on in company1908. In 1909,theymanufactured, airplane established British the first manufacturing

(Eustace, Oswald and (Eustace, Horace)

GROWTH THROUGH

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. Bombardier TorontoBombardier 10 1928 . . . . Toronto Bombardier 90 years 90 years 7,500 aircraft employees Approximately 4,000 runway active 7,000 ft land of acres Approximately 380 facility square million 1.7

foot -foot

. . . Assembly Wing 70/75 Lear Final Assembly familyaircraft Global Deliveryand Final Assembly Q400

. . Centre Support Customer Centre Development Product

2018

Under certain operating conditions certain Under Aircrat business aircraft establish a new benchmark a new establish aircraft 8000business Global

: Preparing for the future for future the : Preparing Incorporating the latest technology the latest Incorporating Bringing home Setting a new benchmark in global travelin global a new benchmark Setting ...... business jet at Mach0.85 businessat jet Global 8000 10 passengers Machat 0.85 Global 7000

efficiency,and reliability business aviation for GE’snew Passport 20 engine willset anewstandard performance,in Deck Fly and light Global 7000 Global 7000 - by

- wire technologywire andbreakthrough - filled livingenvironments like feel and comfort to business travel to business comfort feel and -like isdesigned7,900 NM for is designed for 7,300 nautical mile (NM)range with and and spaciousjet features four a Global 8000 1

jets offer large, flexible, comfortable

–

- farther than anyother zone cabin Bombardier

Vision BUSINESS AIRCRAFT

Flight Flight

As of December As of 31, 2017 For the fiscal year ended December 31, 2017 ended December 31, yearfiscal the For seat market 150-seat to . . . . Revenues Products Customer services Q Series turboprops Series regionalCRJ jets Series single- C $2.4B

. . .

Q400 CRJ700 / CRJ900 / CRJ1000 CS300 / CS100

Backlog 433 433 units

aisle jets aisle 2

Employees

5,125 COMMERCIAL AIRCRAFT COMMERCIAL

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. A GLOBALA COMPANYLOCALA WITHPRESENCE BOMBARDIER SITES IN ONTARIO IN SITES BOMBARDIER 13 site one than more include cities Certain Note: Aerospace Transportation

Office Corporate . . . . . facility engineering and manufacturing systems Transportation site engineering and Manufacturing centre maintenance and Operations site engineering and manufacturing stock Rolling centre service Americas

THUNDER BAY MISSISSAUGA ETOBICOKE KINGSTON TORONTO 5 sites in Ontario 5 sites

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. BOMBARDIER IN 14 ONTARIO’SOF THEGROWTH DRIVE WE GDP Ontario’s GDP. $2.6 contributed we impacts, induced and indirect Including Indirect induced impacts and 1. Total GDP includes direct, indirect and induced impacts induced and indirect direct, includes GDP Total 1. For every dollar of sales, dollar Forof sales, everywe$1.48 ofOntario’s generated GDPtotal billion to billion Direct impacts Bombardier directlycontributed $2.6 $1.8 With revenues of almost revenuesof With billion in Ontario in 2016, billionto Ontario’s GDP. ONTARIO

contributed $1 contributed Ontario, Bombardier Transportation Transportation Bombardier Ontario, directly contributed $741 contributed directly Ontario, Bombardier’s Aerospace Aerospace Bombardier’s Ontario, With revenues of $867 of revenues With $1.8 of revenues With business segments directly segments business Ontario’s GDP in 2016. in GDP Ontario’s Transportation Aerospace billion to Ontario’s GDP GDP Ontario’s to billion in 2016. (1)

in 2016 in billion in in billion million in in million million to to million

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. Bombardier generates 53,500 jobs and invests annually $2B $2B in R&D annually and jobs invests 53,500 generates Bombardier BOMBARDIER EMPLOYMENT ANDCANADA R&DIN 15 and indirect and induced employment induced and indirect and manufacturing aerospace Direct jobs Research Infosource Inc. 2017 Inc. Infosource The Research data; Sources: State of 2014 Report Bombardier (AIAC); the Industry, Canadian Aerospace r o 2014 in 31, and multiplie on on Canada economic segments December aerospace Bombardier at employees Based 2. direct on 20,097 by AIAC in jobs and reported induced 2014 indirect direct, Represents 1. in the AIAC report to represent indirect and jobs induced indirect in represent to AIAC the report 53,500 107,000

#5 #4 #3 #2 #1 [ Canada’s Top Spenders R&D $B CAD, 2017] $B CAD, Resources Limited Limited Resources Natural Canadian International Pharmaceuticals Valeant Magna International Magna BlackBerry Bombardier

f 1.33 as as 1.33 f used

$0.54 $0.55 $0.67 $2.0 $0.79

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. Agenda: What we will coverAgenda: What will we Competitiveness / Global Collaboration Regional 16 BOMBARDIER’SONTARIOIN ACTIVITYENGAGEMENT& OUR ASTUDY OF GLOBALLEADINGREGIONSECONOMIC & THEIR ACTIVITY CANADIANMANUFACTURING: A PERSPECTIVE & BOMBARDIER’S PLACE HISTORY / CURRENT ORGANIZATION STRUCTURE / INNOVATION CULTURE BOMBARDIER: OF OVERVIEW

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved.    Manufacturing ForcesShaping Global 17 global supplychains. Ageneralcontinued trend towards tradeliberalization and stronger markets Slowing of demandin developed countries, andshift towards emerging volatility. price / financial of levels Recent footprint is over 85% focused on developed countries in North North in Europe / Americacountries on developed focused 85% overis footprint    Source: Canadian Manufacturing in a Global Context Context a Global in CanadianManufacturing Source: Bombardier is accelerating our activity in developing countries. current Ourcountries.in developing our activityis acceleratingBombardier experience slower growth. slower experience Companiesrelying on exports to developed countries could typically techniques. mitigation flexible Requires enhanced risk monitoring and management of costs, and protectionism towards some by activities recent despite years, of number a overtrend a remains This

–

Andrew and Asia Dooner

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved.  Canada’s in Comparison Sector Manufacturing 18 Canada’s manufacturing sector has grown has grown Canada’ssector that A manufacturing suggests data of review more slowly more   Manufacturing Context in aGlobal Manufacturing Canadian Ivey:Graph: ranking). trade Canada’s data (regarding (2013) Nations United Sources: Canada’sposition in manufacturing hasdeclined from7 significantly.more grow sectors Developingcountries by contrasthave seen their manufacturing 2000 to 13 to 2000

than some of its OECD peers. peers. OECD its of some than th

in 2010. (share of global manufacturing GDP) manufacturing global of (share 2010. in

globally in

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. characteristics Canada’s- Sub Manufacturing 19 Source: Adapted by McKinsey and Company analysis on key clusters on clusters keyanalysis and Company AdaptedSource: McKinseyby Labour Intensive tradeable goods tradeable Intensive Labour commodities intensive / resrouce Energy markets local for Innovation Global Canadian Manufacturing Sub- Canadian Manufacturing

Global Technologies / / Innovators Technologies Global Regional Processing Sectors & their & their Sectors Sectors by Size Pharma) / Transport / (Auto Innovation Global Sub prod.) petroleum refined / metals / paper Pulp / (Wood commodities intensive resource / Energy plastics) / Printing &Bev (Food Processing Regional - Sector

Characteristics • • • • • • • • • • • intensity cost energy & inputs & energycost low of availability Requires intensity capital High High energy needs proximity due to intensitytrade Low adaption Local Low intensity R&D High automation Complex labour access Requires innovation / quality on Compete intensity High R&D

/ R&D /

logistics

/ resource resource /

to skilled skilled to

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. Key Factors for Success Factors for Key A Look: Global Closer Innovationfor Markets Local 20 Source: McKinsey analysis McKinsey Source: –

Global Institute Report Report Institute Global

–

Future the Manufacturing

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved.    in Global the Arena.. Manufacturers Canadian 21 -sector. sub this in company Wehighly a of value regions that can representative is Bombardier years. recent in slipped GDP has manufacturing global of Canada’s share in “ is sector manufacturing Canadian the of sector) (sub segment largest The companies manufacturing all to apply that statements broad make to difficult is It  deliver high value R&D, skilled people, a capable supply base, and well developed quality developed well and base, supply capable a people, skilled R&D, value high deliver compete. may a business which in sector the of nature the to according factors success different are There Global InnovationLocalforMarkets     Compete on quality / innovation/ on quality Compete Well developed supply chains R&D Intensity High Appliances KeySubsectors: andAuto Transport / Machinery& / Pharmaceutical –

the sector is not homogenous.

policies

” (35%) ”

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. Agenda: What we will coverAgenda: What will we Competitiveness / Global Collaboration Regional 22 BOMBARDIER’SONTARIOIN ACTIVITYENGAGEMENT& OUR ASTUDY OF GLOBALLEADINGREGIONSECONOMIC & THEIR ACTIVITY CANADIANMANUFACTURING: A PERSPECTIVE & BOMBARDIER’S PLACE HISTORY / CURRENT ORGANIZATION STRUCTURE / INNOVATION CULTURE BOMBARDIER: OF OVERVIEW

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. Innovation Aerospace in 23 In order to attract attract order to In retain / local aerospace industry,regions are increasingly supporting developmentcluster activity –

Cluster DevelopmentCluster

States States - Activities • • • • • • • • Involves: networks development / research Collaborative Airbus Involves: networks development / research Collaborative park Aerospace Technologies etc.) Rolls / RoyceGE / Honeywell United / / Embraer Bombardier / / (Boeing / Airbus etc. suppliers engine suppliers, system Involves major all aerospace OEM’s, Seletar A Star Martin, Gulfstream and others and Gulfstream Martin, SAFRAN,

consortia research

Aerospace Park Aerospace

Boeing / Cessna / Lockheed Lockheed / Cessna / Boeing Meggitt

/ Bombardier// GE /

and others and

Primary Focus AreasFocus Primary • • • • • • • • • Maintenance aircraft, autonomous aircraft, environmentally friendly Next generation Assembly operations manufacturing cost Low Engineering Systems analytics Digital SATCOM engineering maintenance Aircraft

infrastructure, big data data big infrastructure,

engineering

the Montreal cluster Montreal the • • • • AeroMontreal organized by The Montreal aerospace cluster is the largest in Canada andis MAI Activity: MAI CRIAQ Activity • • • • • companies / 2 post companies / 2 through leadership industry internships. Trainingof nextgeneration technicalengineering and capabilitythrough collaborativeBuildresearch projects – SME’s. help to build the manufacturing / supplychain capabilities of CapabilityBuilding: initiatives such as the MACHprogram governmentthe sectorthe needsof on Workforce Planning: brings a common message to about the state the industry.of Conferences: bringsexperts worldleading Montreal to to talk

AeroMontreal

activity: :

secondary academic institutes. .

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. Agenda: What we will coverAgenda: What will we Competitiveness / Global Collaboration Regional 26 BOMBARDIER’SONTARIOIN ACTIVITYENGAGEMENT& OUR ASTUDY OF GLOBALLEADINGREGIONSECONOMIC & THEIR ACTIVITY CANADIANMANUFACTURING: A PERSPECTIVE & BOMBARDIER’S PLACE HISTORY / CURRENT ORGANIZATION STRUCTURE / INNOVATION CULTURE BOMBARDIER: OF OVERVIEW

+ + + + market enablingmaintain Canada it’s toleadership globalthe in role training andeducation, sectoradvisory servicesand R&D, collaborativeprovidewilla It designed spaceaerospace for government partnerships Innovation Centre willbridge industry, academiaand Hub,heart thean the of At Aerospace Research and at Hub an Aerospace Members have agreed uponjointmandatea developing of Toronto(GTA) Area post associationworldAn of -

- secondaryeducation institutionsGreaterthe from

Downsview leading aerospace companies and

Park in Toronto,Park Ontario

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. campus / centennialcollege.ca ConstructionFeed: Live 900 students from grow toand Aviation Aerospacefor research facilitywill theenable College’s Centre The 2018 currentlyconstructionunder openinwill and Centennial The College COLLEGE PHASE1: CENTENNIAL

$72 million, 130,000$72 million,

downsview Downsview sq

feet feet - park training and

Campus is - aerospace 300 to Fall -

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. + + + + + + which include: InnovationThe provideCentreaims to services globalthe market. enablingmaintainleadership Canada its to in role education, sector advisory services and R&D, space designedaerospace for training and industry and academic partners in acollaborative The CENTRE PHASE2: INNOVATION students as well as industry classrooms) classrooms) Rental space (offices, meeting space, labs, Eventspace (conferences and workshops) Entrepreneurship support - Educationtraining and Technology space business, financing) Advisors industry for (technology, innovation, DAIR Innovation Centre

special courses for willbring together

start - specific training - up space

Collaborative Research / Funding / / / Funding Research Training Collaborative

Diverserevenue streams assets critical to Proximity Diverse partners local talenta Access poolto Relationshipsindustry withleaders Global reach and goals

PRIVATE AND CONFIDENTIAL © Bombardier Inc. or its subsidiaries. All rights reserved. • • • globally? competitive advantage create to regionally commit Why 34 the region. region.the Clusters attractinvestment new from incompanies investtolooking government and other external stakeholders. initiativestermsin of HQP training and other sector issues with A cluster provides synergies in terms of working on joint policy important R&D initiatives using shared resources. Engaging in a cluster provides a vehicle for joint collaboration on • • • available at a technologyto participants. impact lower cost – shared are resources When projects joint on together work can Companies ofspecialization. areas towards - post Provides

secondary institutions the opportunity to dedicate resources resources dedicate to opportunity the institutions secondary they can be optimized they can be optimized to include the latest