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Bombardier Announces Financial Results for the Second Quarter Ended June 30, 2014

MONTREAL, QUEBEC -- (Marketwired) -- 07/31/14 -- Bombardier Inc. (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF)

(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.)


--  Revenues of $4.9 billion, compared to $4.4 billion for the same period
    last fiscal year 
    
--  EBIT before special items(1) of $257 million, or 5.3% of revenues,
    compared to $257 million, or 5.8%, for the same period last fiscal year 
    
--  Adjusted net income(1) of $192 million (adjusted EPS(1) of $0.10),
    compared to $158 million (adjusted EPS of $0.09) for the same period
    last fiscal year 
    
--  Free cash flow usage(1) of $424 million, compared to a usage of $566
    million for the same period last fiscal year, including a net investment
    of $525 million in PP&E and intangible assets 
    
--  Available short-term capital resources of $3.9 billion, including cash
    and cash equivalents of $2.5 billion as at June 30, 2014, compared to
    $4.8 billion and $3.4 billion, respectively, as at December 31, 2013 
    
--  Backlog of $75.7 billion as at June 30, 2014, compared to $69.7 billion
    as at December 31, 2013 
    
--  Subsequent to quarter-end, announcement of a new organizational
    structure 
    

(1) See Caution regarding non-GAAP measures at the end of this press        
    release.                                                                

Bombardier today reported its financial results for the second quarter ended June 30, 2014. Revenues totalled $4.9 billion for the quarter, compared to $4.4 billion for the same period last fiscal year, which represents an increase of 8.9%, excluding currency impacts.

For the second quarter ended June 30, 2014, earnings before financing expense, financing income and income taxes (EBIT) totalled $257 million, or 5.3% of revenues, compared to EBIT before special items of $257 million, or 5.8%, and EBIT of $288 million, or 6.5%, for the same period last fiscal year.

On an adjusted basis, net income amounted to $192 million, or earnings per share (EPS) of $0.10, for the second quarter ended June 30, 2014, compared to $158 million, or $0.09, for the same period the previous year. Net income totalled $155 million, or EPS of $0.08, compared to $180 million or $0.10 for the same period the previous year.

For the three-month period ended June 30, 2014, free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment (PP&E) and intangible assets) amounted to $424 million, compared to a usage of $566 million for the same period last year. As at June 30, 2014, available short-term capital resources of $3.9 billion included cash and cash equivalents of $2.5 billion, compared to $4.8 billion and $3.4 billion, respectively as at December 31, 2013. The overall backlog reached $75.7 billion as at June 30, 2014, compared to $69.7 billion as at December 31, 2013.

On July 23, 2014, Bombardier announced a new organizational structure comprised of four business segments: Bombardier Transportation, Bombardier Business Aircraft, Bombardier Commercial Aircraft and Bombardier Aerostructures and Engineering Services, the heads of which will report directly to Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. The creation of the Aerostructures and Engineering Services business segment aims at further marketing the company's expertise in this field to the aerospace industry, thus generating new revenues. A detailed implementation plan will be developed within the next few months, and the new structure will be in place January 1, 2015. The restructuring will result in a reduction of approximately 1,800 indirect positions in Aerospace.

"Overall results for the second quarter were in line with our expectations. Both groups saw an increase in their revenues and a high level of activity for their products," said Pierre Beaudoin. "Bombardier Transportation continued to win a good level of new orders, bringing its total amount to $9.7 billion for the first six months of the year. And further cost reduction measures are being implemented as part of its reorganization initiative to increase profitability over time."

"In Aerospace, the new organizational structure recently announced will make us more agile and flexible in addressing customer needs, while reducing costs and increasing our ability to focus on growth areas. Our strong backlog, combined with this new lighter structure, will allow us to realize the full potential of our investments in new products," concluded Mr. Beaudoin.

Bombardier Aerospace

Bombardier Aerospace's revenues amounted to $2.5 billion for the three-month period ended June 30, 2014, compared to $2.3 billion for the same period last fiscal year. EBIT totalled $141 million, or 5.6% of revenues, for the second quarter ended June 30, 2014, compared to EBIT before special items of $107 million, or 4.7%, and EBIT of $138 million, or 6.1%, for the same period last fiscal year. Free cash flow usage amounted to $363 million (including net additions to PP&E and intangible assets of $509 million) for the second quarter ended June 30, 2014, compared to a usage of $459 million (including net additions to PP&E and intangible assets of $534 million) for the same period last fiscal year.

Bombardier Aerospace delivered a total of 62 aircraft during the second quarter ended June 30, 2014, compared to 57 for the same period last fiscal year, and received 48 net orders, compared to 82 for the same period last fiscal year.

On May 29, 2014, an engine-related incident occurred on the first CS100 Flight Test Vehicle (FTV1) during stationary ground maintenance testing. Bombardier and Pratt & Whitney have worked on a solution and flight tests are expected to resume in the coming weeks. The targeted entry-into-service dates of the CS100 and CS300 aircraft programs remain unchanged.

In June, Bombardier Commercial Aircraft signed a firm order with an undisclosed customer for 16 CRJ900 NextGen aircraft, valued at $727 million based on list price, with options for an additional eight.

Subsequent to quarter-end, at the Farnborough Airshow, Bombardier Aerospace concluded firm orders, conditional purchase agreements and letters of intent for a total of 74 aircraft, valued at more than $4.25 billion. This includes letters of intent and a conditional purchase agreement for a total of 66 CSeries aircraft with five customers, bringing the total CSeries firm orders and other agreements to 513, with 20 customers in 17 countries, including 203 firm orders.

In April, the maiden flight of the first Learjet 85 Flight Test Vehicle was successfully completed. Additional flights have since occurred. The flights are proceeding as expected.

Bombardier Aerospace's backlog reached a level of $38.1 billion as at June 30, 2014, compared to $37.3 billion, as at December 31, 2013.

Bombardier Transportation

Bombardier Transportation's revenues amounted to $2.4 billion for the three-month period ended June 30, 2014, compared to $2.2 billion for the same period last year, an increase of 6.3% excluding currency impacts. EBIT totalled $116 million, or 4.9% of revenues, compared to $150 million, or 6.9%, for the same quarter the previous year. Free cash flow usage totalled $47 million for the quarter ended June 30, 2014, compared to a usage of $21 million for the same period last fiscal year.

New orders reached $1.7 billion (book-to-bill ratio of 0.7), bringing the total orders to $9.7 billion for the first six months of the year (book-to-bill ratio of 2.1). This translates into an order backlog of $37.6 billion as at June 30, 2014, compared to $32.4 billion as at December 31, 2013.

During the second quarter, Bombardier Transportation won several small and medium orders across various regions and product segments, including a contract for rolling stock from an undisclosed customer for a value of $338 million. It also signed a framework agreement with Railpool GmbH to provide 65 TRAXX locomotives, with a first call-off of 35 locomotives valued at $184 million. Also, Virgin Trains signed a contract to extend the provision of maintenance of its Super Voyager fleet operating on the UK's West Coast main line to March 2019, valued at approximately $175 million.


FINANCIAL HIGHLIGHTS                                                        
(in millions of U.S. dollars, except per share amounts)                     
----------------------------------------------------------------------------
----------------------------------------------------------------------------
For the three-month periods ended June                                      
 30                                         2014                       2013 
----------------------------------------------------------------------------
                            BA       BT    Total       BA       BT    Total 
----------------------------------------------------------------------------
                                                                            
Results of operations                                                       
Revenues               $ 2,512  $ 2,379  $ 4,891  $ 2,255  $ 2,175  $ 4,430 
Cost of sales            2,156    2,077    4,233    1,922    1,836    3,758 
----------------------------------------------------------------------------
Gross margin               356      302      658      333      339      672 
SG&A                       171      183      354      189      193      382 
R&D                         47       32       79       45       30       75 
Share of income of                                                          
 joint ventures and                                                         
 associates                  -      (28)     (28)       -      (34)     (34)
Other income                (3)      (1)      (4)      (8)       -       (8)
----------------------------------------------------------------------------
EBIT before special                                                         
 items(1)                  141      116      257      107      150      257 
Special items(2)             -        -        -      (31)       -      (31)
----------------------------------------------------------------------------
EBIT                   $   141  $   116      257  $   138  $   150      288 
Financing expense                             90                         83 
Financing income                             (49)                       (47)
----------------------------------------------------------------------------
EBT                                          216                        252 
Income taxes                                  61                         72 
----------------------------------------------------------------------------
Net income                               $   155                    $   180 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EPS (basic and diluted;                                                     
 in dollars)                             $  0.08                    $  0.10 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Supplemental                                                                
 information                                                                
----------------------------------------------------------------------------
EBIT before special                                                         
 items(1)              $   141  $   116  $   257  $   107  $   150  $   257 
Amortization                74       29      103       71       31      102 
----------------------------------------------------------------------------
EBITDA before special                                                       
 items(1)              $   215  $   145  $   360  $   178  $   181  $   359 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
On an adjusted basis                                                        
----------------------------------------------------------------------------
Adjusted net income(1)                   $   192                    $   158 
Adjusted EPS (in                                                            
 dollars)(1)                             $  0.10                    $  0.09 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash flows from                                                             
 operating activities  $   146  $   (31)          $    75  $    (5)         
Net additions to PP&E                                                       
 and intangible assets    (509)     (16)             (534)     (16)         
----------------------------------------------------------------------------
Segmented free cash                                                         
 flow usage(1)         $  (363) $   (47) $  (410) $  (459) $   (21) $  (480)
Net income taxes and                                                        
 net interest paid                           (14)                       (86)
----------------------------------------------------------------------------
Free cash flow usage(1)                  $  (424)                   $  (566)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
BA: Bombardier Aerospace; BT: Bombardier Transportation                     
(1) Non-GAAP financial measures. Refer to the Non-GAAP financial measures   
    and Liquidity and capital resources sections in Overview of the         
    Corporation's MD&A for definitions of these metrics and reconciliation  
    to the most comparable IFRS measures.                                   
(2) The special item for the three-month period ended June 30, 2013, related
    to a gain following the successful resolution of a litigation in        
    connection with Part IV of the Quebec Income Tax Act, the Tax on        
    Capital.                                                                
                                                                            
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
For the six-month periods ended June 30     2014                       2013 
----------------------------------------------------------------------------
                            BA       BT    Total       BA       BT    Total 
----------------------------------------------------------------------------
Results of operations                                                       
Revenues               $ 4,601  $ 4,644  $ 9,245  $ 4,513  $ 4,256  $ 8,769 
Cost of sales            3,958    4,036    7,994    3,873    3,608    7,481 
----------------------------------------------------------------------------
Gross margin               643      608    1,251      640      648    1,288 
SG&A                       328      364      692      347      379      726 
R&D                         87       68      155       87       58      145 
Share of income of                                                          
 joint ventures and                                                         
 associates                  -      (50)     (50)       -      (78)     (78)
Other income               (18)      (4)     (22)      (2)       -       (2)
----------------------------------------------------------------------------
EBIT before special                                                         
 items(1)                  246      230      476      208      289      497 
Special items(2)            12        -       12      (31)       -      (31)
----------------------------------------------------------------------------
EBIT                   $   234  $   230      464  $   239  $   289      528 
Financing expense                            136                        151 
Financing income                             (61)                       (80)
----------------------------------------------------------------------------
EBT                                          389                        457 
Income taxes                                 119                        129 
----------------------------------------------------------------------------
Net income                               $   270                    $   328 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EPS (basic and diluted;                                                     
 in dollars)                             $  0.14                    $  0.18 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Supplemental                                                                
 information                                                                
----------------------------------------------------------------------------
EBIT before special                                                         
 items(1)              $   246  $   230  $   476  $   208  $   289  $   497 
Amortization               137       59      196      132       61      193 
----------------------------------------------------------------------------
EBITDA before special                                                       
 items(1)              $   383  $   289  $   672  $   340  $   350  $   690 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
On an adjusted basis                                                        
----------------------------------------------------------------------------
Adjusted net income(1)                   $   343                    $   314 
Adjusted EPS (in                                                            
 dollars)(1)                             $  0.19                    $  0.17 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash flows from                                                             
 operating activities  $    85  $  (271)          $   117  $   (67)         
Net additions to PP&E                                                       
 and intangible assets    (993)     (32)           (1,037)     (27)         
----------------------------------------------------------------------------
Segmented free cash                                                         
 flow usage(1)         $  (908) $  (303) $(1,211) $  (920) $   (94) $(1,014)
Net income taxes and                                                        
 net interest paid                          (128)                      (142)
----------------------------------------------------------------------------
Free cash flow usage(1)                  $(1,339)                   $(1,156)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
BA: Bombardier Aerospace; BT: Bombardier Transportation                     
(1) Non-GAAP financial measures. Refer to the Non-GAAP financial measures   
    and Liquidity and capital resources sections in Overview of the         
    Corporation's MD&A for definitions of these metrics and reconciliation  
    to the most comparable IFRS measures.                                   
(2) The special items for the six-month period ended June 30, 2014 relate to
    a $22-million expense for the previously announced workforce reduction  
    of approximately 1,700 positions, located mostly in Canada and the U.S.,
    and a $10-million gain following the successful resolution of a         
    litigation in connection with Part IV of the Quebec Income Tax Act, the 
    Tax on Capital. The special item for the three- and six-month periods   
    ended June 30, 2013 relates to a gain following the successful          
    resolution of a litigation in connection with Part IV of the Quebec     
    Income Tax Act, the Tax on Capital.                                     

SELECTED FINANCIAL INFORMATION

Bombardier Aerospace


Total aircraft deliveries                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                     Three-month periods   Six-month periods
                                           ended June 30       ended June 30
----------------------------------------------------------------------------
(in units)                                2014      2013      2014      2013
----------------------------------------------------------------------------
Business aircraft                           38        45        81        84
Commercial aircraft                         23        12        36        25
Amphibious aircraft                          1         -         1         1
----------------------------------------------------------------------------
                                            62        57       118       110
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Total aircraft net orders                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 June 30, 2014                 June 30, 2013
----------------------------------------------------------------------------
                   Gross                   Net   Gross                   Net
(in units)        orders Cancellations  orders  orders Cancellations  orders
----------------------------------------------------------------------------
Three-month periods                                                         
 ended                                                                      
----------------------------------------------------------------------------
Business aircraft     41           (11)     30      65           (18)     47
Commercial                                                                  
 aircraft             18             -      18      43            (8)     35
----------------------------------------------------------------------------
                      59           (11)     48     108           (26)     82
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Six-month periods ended                                                     
----------------------------------------------------------------------------
Business aircraft     96           (20)     76     101           (27)     74
Commercial                                                                  
 aircraft             62            (1)     61      47           (11)     36
Amphibious                                                                  
 aircraft              2             -       2       -             -       -
----------------------------------------------------------------------------
                     160           (21)    139     148           (38)    110
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Book-to-bill ratio(1)                                                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                     Three-month periods   Six-month periods
                                           ended June 30       ended June 30
----------------------------------------------------------------------------
                                          2014      2013      2014      2013
----------------------------------------------------------------------------
Business aircraft                          0.8       1.0       0.9       0.9
Commercial aircraft                        0.8       2.9       1.7       1.4
----------------------------------------------------------------------------
                                           0.8       1.4       1.2       1.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Defined as net orders received over aircraft deliveries, in units.      
                                                                            
Order backlog                                                               
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                       As at
----------------------------------------------------------------------------
(in billions of dollars)                  June 30, 2014    December 31, 2013
----------------------------------------------------------------------------
Aircraft programs                               $  34.8              $  33.9
Long-term maintenance and spares                                            
 support agreements                                 2.9                  2.9
Military Aviation Training                          0.4                  0.5
----------------------------------------------------------------------------
                                                $  38.1              $  37.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Bombardier Transportation


Revenues by geographic region                                               
----------------------------------------------------------------------------
----------------------------------------------------------------------------
         Three-month periods ended June 30  Six-month periods ended June 30 
----------------------------------------------------------------------------
                        2014          2013             2014            2013 
----------------------------------------------------------------------------
Europe(1)        $ 1,601  67%  $ 1,446  67%   $  3,122   67%  $  2,845   67%
North America        402  17%      394  18%        824   18%       765   18%
Asia-Pacific(1)      244  10%      196   9%        424    9%       408    9%
Rest of world(1)                                                            
 (2)                 132   6%      139   6%        274    6%       238    6%
----------------------------------------------------------------------------
                 $ 2,379 100%  $ 2,175 100%   $  4,644  100%  $  4,256  100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) The increases in Europe reflect positive currency impacts of $95 million
    and $150 million, respectively, for the three- and six-month periods    
    ended June 30, 2014, while the increases in Asia-Pacific reflect        
    negative currency impacts of $18 million and $26 million respectively,  
    and the variances in the Rest of world region reflect negative currency 
    impacts of $10 million and $16 million respectively.                    
(2) The Rest of world region includes South America, Central America,       
    Africa, the Middle East and the CIS.                                    
                                                                            
Order intake and book-to-bill ratio                                         
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                     Three-month periods   Six-month periods
                                           ended June 30       ended June 30
----------------------------------------------------------------------------
Order intake (in billions of                                                
 dollars)                                 2014      2013      2014      2013
----------------------------------------------------------------------------
Rolling stock                            $ 0.7     $ 2.2     $ 5.7     $ 3.3
Services                                   0.6       0.7       3.2       1.3
System and signalling                      0.4       0.3       0.8       0.6
----------------------------------------------------------------------------
                                         $ 1.7     $ 3.2     $ 9.7     $ 5.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Book-to-bill ratio(1)                      0.7       1.5       2.1       1.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Ratio of new orders over revenues.                                      
                                                                            
Order backlog                                                               
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                       As at
----------------------------------------------------------------------------
(in billions of dollars)                  June 30, 2014    December 31, 2013
----------------------------------------------------------------------------
Rolling stock                                   $  23.6              $  21.1
Services                                            9.9                  7.4
System and signalling                               4.1                  3.9
----------------------------------------------------------------------------
                                                $  37.6              $  32.4
----------------------------------------------------------------------------
----------------------------------------------------------------------------

DIVIDENDS ON COMMON SHARES

Class A and Class B Shares

A quarterly dividend of $0.025 Cdn per share on Class A Shares (Multiple Voting) and of $0.025 Cdn per share on Class B Shares (Subordinate Voting) is payable on September 30, 2014 to the shareholders of record at the close of business on September 12, 2014.

Holders of Class B Shares (Subordinate Voting) of record at the close of business on September 12, 2014 also have a right to a priority quarterly dividend of $0.000390625 Cdn per share.

DIVIDENDS ON PREFERRED SHARES

Series 2 Preferred Shares

A monthly dividend of $0.0625 Cdn per share on Series 2 Preferred Shares has been paid on May 15, June 15 and July 15, 2014.

Series 3 Preferred Shares

A quarterly dividend of $0.195875 Cdn per share on Series 3 Preferred Shares is payable on October 31, 2014 to the shareholders of record at the close of business on October 17, 2014.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is payable on October 31, 2014 to the shareholders of record at the close of business on October 17, 2014.

About Bombardier

Bombardier is the world's only 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 Montreal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2013, we posted revenues of $18.2 billion. News and information are available at www.bombardier.com or follow us on Twitter @Bombardier.

Bombardier, CRJ900, CS100, CS300, CSeries, Learjet, Learjet 85, NextGen, TRAXX, and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries.

The Management's Discussion and Analysis and the interim consolidated financial statements are available at www.ir.bombardier.com.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, our 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; our competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations. 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 us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. While we consider our assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. 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 Overview, Bombardier Aerospace and Bombardier Transportation sections in the Management's Discussion and Analysis ("MD&A") in the Corporation's financial report for the fiscal year ended December 31, 2013.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with our 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) 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, 2013. 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 our expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statement, 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.

CAUTION REGARDING NON-GAAP MEASURES

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 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 a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our financial reports with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and Analysis of results sections in Aerospace and Transportation in the Corporation's MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.

Contacts:
Isabelle Rondeau
Director, Communications
Bombardier Inc.
+514 861 9481

Shirley Chenier
Senior Director, Investor Relations
Bombardier Inc.
+514 861 9481

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