Bombardier, Inc. (BBD) 2024年年度報告「TSX」.pdf

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1、Bombardier and its talented team members design,build,and maintain the worlds best-performing aircraft for the most discerning people,businesses,governments and militaries.AN INNOVATIVE INDUSTRY LEADERHeadquartered in Greater Montral,Qubec,Bombardier is powered by a proud heritage and visionary inno

2、vation in the design,manufacture and support of world-class business aircraft.Its Challenger and Global aircraft families are renowned for their cutting-edge cabin design,performance and reliability.Bombardier is recognized for its leadership in sustainability,including its pledge to cover the total

3、ity of its flight operations with Sustainable Aviation Fuel using the Book-and-Claim system.Revenues(1)$8.7 billionOrder backlog(2)$14.4 billionEmployees(3)18,800Bombardier customers operate a worldwide fleet of more than 5,100 in service aircraft,with a wide variety of multinational corporations,ch

4、arter and fractional ownership providers,governments and private individuals.Bombardier is also steadily growing its defense portfolio through Bombardier Defense,which designs,develops and delivers a diverse portfolio of proven and versatile aircraft platforms used for humanitarian assistance,medeva

5、c,VIP transportation,reconnaissance,maritime patrol,Electronic Warfare and Search and Rescue by operators around the world.Bombardier boasts an extensive global network of service and support facilities,where it expertly maintains the Global,Challenger and Learjet(4)families of aircraft.These facili

6、ties include service centers in the U.S.,Europe and Asia-Pacific,as well as mobile response teams and dedicated aircraft parts availability sustained by parts facilities,including depots,hubs and repair facilities.All amounts in this financial report are in U.S.dollars unless otherwise indicated.(1)

7、For fiscal year 2024.(2)As at December 31,2024.(3)As at December 31,2024,including contractual and inactive employees.(4)Bombardier delivered its last Learjet aircraft in 2022 but continues to provide Services and Support for the Learjet family of aircraft.A message from Bombardier CEO ric Martel De

8、ar Shareholders,Todays Bombardier is decidedly transformed from the company it was 5 years ago.Over the last year we became even stronger and more resilient,achieving record Services revenues and tapping into the full potential of our Defense business.Im proud to say that the two ingredients that ma

9、tter most,having the right strategy and knowing how to execute it,are qualities that are once again synonymous with Bombardier.We worked together to deliver a portfolio that is diversified between products,Services and Defense,as per our strategy for long-term predictability.Were redefining the busi

10、ness aviation industry with our innovations,our unparalleled jets and our exceptional service.Were building confidence in the financial community and delivering a strong balance sheet that gives us strong optionality when considering how to invest and grow.Without a doubt,our people are the greatest

11、 drivers of our success.Pride and engagement among our teams are at their highest in years.Theres a sense of purpose at Bombardier as together,we shape the future of our industry.Record-breaking Services growth Last year was truly exceptional for our Services business.After years of expanding our ne

12、twork to better serve our customers and our fleet of more than 5,100 jets,we enjoyed our highest Services revenues to date,as more aircraft visited our service network than ever before.In fact,we met our 2025 objective of$2.0 billion in annual Services revenue one year early,and the future holds eve

13、n greater potential.Our expanded support network is key to our success,and our“like family”approach keeps customers coming back.In 2024,Bombardier was voted No.1 in the influential Product Support Survey published annually by trade publication Aviation International News(AIN).Clearly,our customers a

14、ppreciate our commitment to building real relationships.In 2025 and beyond,we will continue to grow our services network strategically and focus on further elevating the high level of service that defines Bombardier(1).Landmark moments in Defense Last year was exceptional for Bombardier Defense,a ke

15、y pillar of our companys future.We celebrated the first flight of the Persistent German Airborne Surveillance System(PEGASUS)program for the German government,and delivered the first High Accuracy Detection and Exploitation System(HADES)aircraft to the U.S.Army.These airborne surveillance solutions,

16、both based on our Global 6500 platform,reinforce Bombardier Defenses reputation as a go-to partner for forward-looking governments.As countries around the world look to secure their borders,Bombardier is ready with proven solutions.Product milestones and industry leadership Last year was also marked

17、 by achievements that underscore Bombardiers position as the industry leader in performance,innovation and sustainability.Our business jets are in high demand among the worlds most discerning customers.Last year,we delivered the 100th Challenger 3500 aircraft and the 200th Global 7500 aircraft.Speak

18、ing of our industry flagship,we set more than 75 city-pair speed records with the Global 7500(2),reminding the entire industry that this aircraft has no equal.In fact,only Bombardier has the know-how to top this business jet:the Global 8000 aircraft,the evolution of the Global 7500,will enter servic

19、e in 2025(1)(3)flying farther and faster than any other purpose-built business jet.This much-anticipated aircraft is truly emblematic of Bombardiers leadership and momentum.Sustainability remained an area of focus throughout 2024.We continue to advance our EcoJet research project and started off the

20、 year by announcing a strategic partnership with the University of Victoria,the first of many academic collaborations related to this trailblazing initiative.We also announced in 2024 that our Environmental Product Declarations now cover our entire portfolio of in-production aircraft,a further sign

21、of Bombardiers industry leadership.A remarkable financial performance Given the successes listed above,its no surprise that Bombardier delivered an outstanding financial performance in 2024,the details of which are explained to you in the following pages.BOMBARDIER INC./2024 FINANCIAL REPORT 1Among

22、the highlights of our 2024 performance,the value of Bombardiers Class B shares increased by 84%over the past year(4).This is excellent news for shareholders and also demonstrates the confidence of the financial community.In the first half of 2024,we received credit rating upgrades from both Moodys I

23、nvestor Service Inc.and S&P Global Ratings.In the fall,Bombardier was listed on the Toronto Stock Exchanges annual TSX30 ranking of top performing shares for the second year in a row.We continue to make progress to de-leverage the company.In fact,Bombardier has reduced its long-term debt by approxim

24、ately$4.9 billion since December 31,2020(5).This remarkable turnaround is a result of discipline,focus and a solid business strategy.A new brand that reflects who we are Finally,I cant speak about 2024 without addressing a significant evolution for Bombardier the launch of our stunning new brand.Aft

25、er our successful transformation,it was time for our brand to represent who we are today,and where we are going.Our new typeface pays tribute to our history as a family company,and our new logo,featuring the“Mach”symbol,represents our forward-thinking innovative spirit and celebrates the fact that o

26、ur Global 8000(3)aircraft broke the sound barrier during flight testing.Bombardier momentum at its best!This visual transformation is about much more than a logo its a reflection of what sets us apart.Our customers choose us not only because of our products,but because we are connoisseurs who care,b

27、ecause we make them feel like family.Investing in our brand is a strategic decision that will raise our profile and make us more recognizable as a world-class company.Our new look is receiving overwhelmingly positive reactions and even earned a Red Dot Award,one of the worlds most prestigious design

28、 recognitions.Looking ahead to 2025 and beyond(1)The pride that surrounds Bombardier is a clear indication of how far weve come.We are facing some geopolitical uncertainty as we begin the second half of this decade,but what we can be certain about is our resilience,the unmatched quality of our produ

29、cts and services,and most of all,the calibre of our people.I have no doubt that Bombardier has the right elements in place to continue leading this amazing industry into the future.Sincerely,Eric MartelPresident and Chief Executive Officer(1)See the forward-looking statements disclaimer in the overv

30、iew section of Bombardiers Management Discussion and Analysis for the fiscal year-ended 2024.(2)Speeds and distances referenced per FAI guidelines.Some records pending review by FAI,the World Air Sports Federation.(3)The Global 8000 aircraft is currently under development and remains to be finalized

31、 and certified.All specifications and data are approximate,may change without notice and are subject to certain operating rules,assumptions and other conditions.It is expected to enter service in 2025.(4)Defined as the percentage increase in the value of class B shares(subordinate voting)by comparin

32、g the closing share price on January 1,2024 to the closing price on December 31,2024.(5)Represents the notional amount of the long-term debt repaid and includes the partial repayment of$300 million of Senior Notes due 2027 completed in January 2025.2 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED

33、 DECEMBER 31,2024Table of ContentsMANAGEMENTS DISCUSSIONAND ANALYSISCONSOLIDATED FINANCIAL STATEMENTSFor the fiscal year endedDecember 31,2024For the fiscal years endedDecember 31,2024 and 2023491BOMBARDIER INC./2024 FINANCIAL REPORT 3BOMBARDIER INC.MANAGEMENTS DISCUSSIONAND ANALYSISFor the fiscal y

34、ear endedDecember 31,2024All amounts in this report are expressed in U.S.dollars,and all amounts in the tables are in millions of U.S.dollars,unless otherwise indicated.This MD&A is the responsibility of management and has been reviewed and approved by the Board of Directors of Bombardier Inc.(“the

35、Corporation”or“Bombardier”or“our”or“we”).This MD&A has been prepared in accordance with the requirements of the Canadian Securities Administrators.The Board of Directors is responsible for ensuring that we fulfill our responsibilities for financial reporting and is ultimately responsible for reviewi

36、ng and approving the MD&A.The Board of Directors carries out this responsibility principally through its Audit Committee.The Audit Committee is appointed by the Board of Directors and is comprised entirely of independent and financially literate directors.The Audit Committee reports its findings to

37、the Board of Directors for its consideration when it approves the MD&A and financial statements for issuance to shareholders.The data presented in this MD&A is structured under one reportable segment:Bombardier,which is reflective of our organizational structure.IFRS and non-GAAP and other financial

38、 measuresThis MD&A contains both IFRS and non-GAAP and other financial measures.Non-GAAP and other financial measures are defined and reconciled to the most comparable IFRS measure(see the Non-GAAP and other financial measures section).Materiality for disclosuresWe determine whether information is m

39、aterial based on whether we believe a reasonable investors decision to buy,sell or hold securities of the Corporation would likely be influenced or changed if the information was omitted or misstated.Certain totals,subtotals and percentages may not agree due to rounding.The Financial Report for fisc

40、al year 2024 comprises the message from our President and Chief Executive Officer to shareholders,this MD&A and our consolidated financial statements.4 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024 The following table shows the abbreviations used in the MD&A and the consolidated

41、 financial statements.TermDescriptionTermDescriptionACLPAirbus Canada Limited Partnership GAAPGenerally accepted accounting principlesAINAviation International News GDPGross domestic productbpsBasis pointsIASInternational Accounting Standard(s)CCTDCumulative currency translation differenceIASBIntern

42、ational Accounting Standards BoardCGUCash generating unitIFRSInternational Financial Reporting Standard(s)DBDefined benefitMD&AManagements discussion and analysisDCDefined contributionMHIMitsubishi Heavy Industries,LtdDDHRDerivative designated in a hedge relationshipn/aNot applicableDSUDeferred shar

43、e unitOCIOther comprehensive incomeEBITEarnings(loss)before financing expense,financing income and income taxesOEMOriginal Equipment ManufacturerPP&EProperty,plant and equipmentEBITDAEarnings(loss)before financing expense,financing income,income taxes,amortization and impairment charges on PP&E and

44、intangible assetsPSUPerformance share unitR&DResearch and developmentROICReturn on invested capitalEBTEarnings(loss)before income taxesRSURestricted share unitEISEntry-into-serviceSAFSustainable Aviation FuelEPDEnvironmental Product DeclarationSG&ASelling,general and administrativeEPSEarnings(loss)p

45、er share attributable to equity holders of Bombardier Inc.SOFRSecured Overnight Financing RateU.K.United KingdomFVOCIFair value through other comprehensive incomeU.S.United States of AmericaFVTP&LFair value through profit and lossBOMBARDIER INC./2024 FINANCIAL REPORT 5OVERVIEWTable of Contents HIGHL

46、IGHTS OF THE YEARSTRATEGIC PRIORITIESKEY PERFORMANCE MEASURES AND METRICSGUIDANCE AND FORWARD-LOOKING STATEMENTSPROFILE INDUSTRY AND ECONOMIC ENVIRONMENTCONSOLIDATED RESULTS OF OPERATIONS7111214182328CONSOLIDATED FINANCIAL POSITIONLIQUIDITY AND CAPITAL RESOURCESCAPITAL STRUCTURERETIREMENT BENEFITSRI

47、SK MANAGEMENTNON-GAAP AND OTHER FINANCIAL MEASURES3435414348526 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024HIGHLIGHTS OF THE YEARBombardier Posts Fourth Consecutive Year of Diversified Growth and Solid Financial PerformanceRESULTSFor the fiscal years ended December 31 2024 202

48、3 VarianceRevenues$8,665$8,046 8%Adjusted EBITDA(1)$1,360$1,230 11%Adjusted EBITDA margin(2)15.7%15.3%40 bpsAdjusted EBIT(1)$915$799 15%Adjusted EBIT margin(2)10.6%9.9%70 bpsEBIT$878$793 11%EBIT margin(3)10.1%9.9%20 bpsNet income(loss)from continuing operations$370$490$(120)Net income(loss)from disc

49、ontinued operations(4)$(45)$45 Net income$370$445$(75)Diluted EPS from continuing operations(in dollars)$3.40$4.70$(1.30)Diluted EPS from discontinued operations(in dollars)(4)$0.00$(0.46)$0.46$3.40$4.24$(0.84)Adjusted net income(1)$547$416$131 Adjusted EPS(in dollars)(2)$5.16$3.94$1.22 Cash flows f

50、rom operating activities(5)$405$623$(218)Net additions to PP&E and intangible assets$173$366$(193)Free cash flow(1)$232$257$(25)As at December 31 2024 2023 VarianceCash and cash equivalents$1,653$1,594 4%Available liquidity(1)$2,082$1,845 13%Order backlog(in billions of dollars)(6)$14.4$14.2 1%(1)No

51、n-GAAP financial measure.A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial mea

52、sures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(2)Non-GAAP financial ratio.A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and mig

53、ht not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(3)Supplementary financial measure.Refer to the Non-GAAP and othe

54、r financial measures section of this MD&A for definitions of these metrics.(4)Discontinued operations are related to the sale of the Transportation business.The expenses recorded in discontinued operations for fiscal year 2023 principally relate to change in estimates of a provision for professional

55、 fees.(5)Only from continuing operations.(6)Represents order backlog for both manufacturing and Services.BOMBARDIER INC./2024 FINANCIAL REPORT 7KEY HIGHLIGHTS AND EVENTSRevenues beat guidance and grew year-over-year to$8.7 billion,driven by record service performance exceeding$2.0 billion,and 146 ai

56、rcraft deliveries.Adjusted EBITDA(1)up 11%year-over-year to$1.36 billion,and adjusted EBITDA margin(2)reached 15.7%.Full-year reported EBIT reached$878 million.Net income and adjusted net income(1)were$370 million and$547 million respectively.Diluted EPS(3)reached$3.40,while adjusted EPS(2)was up 31

57、%year-over-year,from$3.94 to$5.16.Free cash flow(1)generation of$232 million;reported cash flows from operating activities(3)and net additions to PP&E and intangible assets were at$405 million and$173 million respectively.Backlog(4)up year-over-year to$14.4 billion as at December 31,2024.Unit book-t

58、o-bill(5)of 1.0 demonstrates consistent demand.Solid progress on deleveraging sees approximately$400 million debt reduction(6)(7)launched in 2024,adjusted net debt to adjusted EBITDA ratio(2)was reduced from 3.3x in 2023 to 2.9x.Further balance sheet strengthening with the purchase of approximately$

59、635 million in annuities(8)for some pension plans.Available liquidity(1)of$2.1 billion;cash and cash equivalents were$1.7 billion as at December 31,2024.In light of the rapidly evolving landscape stemming from the February 1,2025 executive orders signed by the President of the United States regardin

60、g new tariffs,Bombardier has elected to defer providing guidance and 2025 objectives(9).Update on 2025 OutlookOn February 1,2025,the President of the United States issued three executive orders directing the United States to impose new tariffs on imports originating from Canada,Mexico and China.Thes

61、e orders call for additional 25%duty on imports into the United States of Canadian-origin and Mexican-origin products and 10%duty on Chinese-origin products,except for Canadian energy resources that are subject to an additional 10%duty.In light of the rapidly evolving schedule for tariff implementat

62、ion and the effects they may have,Bombardier has elected to defer providing guidance and 2025 objectives(9),until the Corporation has had the opportunity to further assess the direct and indirect impacts to its business of such tariffs,retaliatory tariffs or other trade protectionist measures implem

63、ented as this situation develops.Bombardiers long-term priorities and strategic orientation remain intact,including plans for continuing growth in its Defense and Services businesses and continued de-leveraging.(1)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized financia

64、l measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to t

65、he most comparable IFRS measures.(2)Non-GAAP financial ratio.A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to th

66、e Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(3)Only from continuing operations.(4)Represents order backlog for both manufacturing and Services.(5)Defined as net new aircraft orders in units ove

67、r aircraft deliveries in units.(6)Using cash from the balance sheet.(7)Including the partial repayment of$300 million of the Senior Notes due 2027 completed in January 2025.(8)In 2024,approximately$635 million of annuities were purchased for some pensioners and beneficiaries of the Bombardier pensio

68、n plans registered in Qubec,with legal discharge occurring in 2025.(9)Refer to the Strategic Priorities and Investor Day Recap sections in the MD&A of the Corporations financial report for the six-month period ended June 30,2024 for the most recent discussion of the 2025 Objectives.8 BOMBARDIER INC.

69、FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024Unveiling new corporate brand identity and strong future growth potential at Investor Day 2024(1)On May 1,2024,at its Investor Day event held at the newly opened Aircraft Assembly Center at Pearson Airport in Toronto,Bombardier highlighted its stron

70、g performance since 2020 and outlined its growth strategies for 2030.The company shared progress on key initiatives,including the expansion of Bombardier Defense,continued growth in Services,and increased involvement in the pre-owned market.Additionally,Bombardier reaffirmed its focus on sustainabil

71、ity,operational excellence,and product innovations,while prioritizing business initiatives that generate high ROIC,aimed at diversifying revenue streams and enhancing business resilience.The event also provided an opportunity to showcase Bombardiers corporate brand,highlighting the companys continue

72、d evolution and its strategic direction moving forward.Continued focus on deleveraging,reinforcing financial flexibility In 2024,Bombardier refinanced$1.5 billion,extended maturities,and used cash from its balance sheet to reduce its debt by approximately$400 million,including a partial repayment of

73、$300 million of Senior Notes due 2027 completed in January 2025,resulting in a total debt reduction of$4.9 billion(2)since December 31,2020,significantly strengthening its financial position.The adjusted net debt to adjusted EBITDA ratio(3)improved from 41.5 at the end of 2020 to 2.9 by December 31,

74、2024,reflecting a 93%decrease.As of December 31,2024,adjusted net debt(4)is$3.9 billion with no debt maturities until 2026.On May 2,2024,Moodys upgraded Bombardiers rating from B2 to B1 with a stable outlook,reflecting the companys strong performance during its transformation.On June 6,2024,S&P Glob

75、al Ratings also upgraded Bombardiers rating from B to B+with stable outlook,citing continued deleveraging initiatives.In October,Bombardier increased its revolving credit facility by$150 million to$450 million,further strengthening its financial flexibility and liquidity management.In addition to th

76、e debt management and liquidity optimization initiatives,the company has been actively purchasing annuities from insurance companies to ease pension plan obligations,transferring the associated risks to the insurers.Since 2020,Bombardier has purchased approximately$1.0 billion in pension plan annuit

77、ies(5)as part of its ongoing risk management strategy.Record year and ongoing growth in ServicesIn 2024,Bombardier continued to enhance its global customer service network while expanding and operationalizing its global service centers.The companys Services achieved an impressive compounded annual g

78、rowth rate(CAGR)of close to 20%in revenue from 2020 to 2024,exceeding$2.0 billion in 2024.This strong performance reflects the success of its expansion strategy,which was further validated by being voted#1 in customer support among competitors in the influential Product Support Survey published annu

79、ally by trade publication Aviation International News(AIN),recognized for its faster response times and unmatched support.On February 19,2024,Bombardier introduced a new Smart Services offerings for Defense customers,featuring customizable maintenance options.This expanded Smart Services program bui

80、lds on Bombardiers existing portfolio,providing Defenses special mission,medevac,head-of-state,and government operators with a comprehensive cost-per-flight-hour solution.Bombardier delivered 100th Challenger 3500On October 31,2024,Bombardier celebrated the 100th delivery of the Challenger 3500 airc

81、raft,marking a continued success for its best-selling platform.With this delivery,the Challenger 3500 became the fastest aircraft to reach 100 deliveries in the super-midsize category.This significant milestone highlighted the broad appeal of the latest evolution of the Challenger family,offering th

82、e ideal combination of performance,comfort,and reliability.The achievement also underscored the strategic importance of the super-midsize category to Bombardiers market position.(1)See the forward-looking statements disclaimer in the Overview section of this MD&A.(2)Represents the notional amount of

83、 the long-term debt repaid.(3)Non-GAAP financial ratio.A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-

84、GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(4)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare

85、our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(5)In 2024,approximately$635 mill

86、ion of annuities were purchased for some pensioners and beneficiaries of the Bombardier pension plans registered in Qubec,with legal discharge occurring in 2025.BOMBARDIER INC./2024 FINANCIAL REPORT 9Bombardier continues growing its Defense businessIn 2024,Bombardier Defense expanded its operations,

87、drawing on decades of experience with special mission operators and further solidifying its reputation as a partner of choice in the defense sector.On May 21,2024,Bombardier Defense opened new offices in Australia,strengthening its presence and expanding its reach in the region.On October 23,2024,Bo

88、mbardier Defense,HENSOLDT and Lufthansa Technik Defense announced that the Persistent German Airborne Surveillance System(PEGASUS)aircraft has completed its first flight out of Bombardiers facility in Wichita,Kansas.Led by HENSOLDT,PEGASUS is an airborne missionized platform that will integrate the

89、Kaltron Integral SIGINT system to perform highly critical signal surveillance missions for the German armed forces.Additionally,on October 31,2024,Bombardier Defense delivered the eighth Bombardier Global aircraft to the United States Air Force for the Battlefield Airborne Communications Node(BACN)p

90、rogram.On November 25,2024,Bombardier delivered the first Global 6500 aircraft to the U.S.Armys High Accuracy Detection and Exploitation System(HADES)Program.Milestones in sustainable aviation In January 2024,Bombardier unveiled the University of Victoria as the first announced academic partnership

91、in the pan-Canadian EcoJet research project.The EcoJet research project aims at maturing and delivering technologies to reduce aircraft CO2 emissions by up to 50%through a combination of advanced aerodynamic shapes and features and emerging low-emissions propulsion and fuel systems.In April 2024,Bom

92、bardier published an EPD for its Challenger 650 jet which was the crowning milestone to Bombardiers commitment of developing and publishing EPDs for all its aircraft in production by 2025.EPDs are an integral part of Bombardiers strategy toward a more sustainable business aviation company.Bombardier

93、s Challenger 650 aircraft joined the Challenger 3500,Global 5500,Global 6500 and Global 7500 aircraft as the only business jets in the world to carry an EPD.Bombardier is the only business jet manufacturer to disclose the scientifically analyzed environmental impact of its entire in production produ

94、ct portfolio.10 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024STRATEGIC PRIORITIES(1)During its May 1st,2024 Investor Day,Bombardier outlined key strategic levers aimed at fostering future growth,signaling a shift towards its next stage of growth beyond 2025.Bombardier highlighte

95、d key strategic initiatives in its Services,Defense and Pre-owned aircraft businesses aimed at diversifying revenues,increasing business predictability,and improving profitability,with the potential that these businesses could total 50%of the Corporations revenues by 2030.Upward momentum in the Serv

96、ices businessThe Corporations Services business has delivered its objective of reaching Services revenues of$2.0 billion in 2024,one year ahead of schedule.Bombardier expects continued mid to high single-digit annual growth in this segment through 2030,driven by expansion in the aircraft fleet,fleet

97、 aging,a trend towards larger aircraft,and increased market presence.Bombardier Defense retains strategic importanceThe growth of Bombardier Defense remains pivotal,with the Defense portfolio poised to achieve revenuesranging from$1.0 to$1.5 billion by 2030.Bombardier expects to secure its share of

98、the global demand forapproximately 375 aircraft representing$25 to$40 billion(2)over the next decade(3),encompassing aircraft salesand modification works.This underscores Bombardiers evolving role as a trusted partner among military operators.Expanding presence in the pre-owned marketThe Corporation

99、 is concentrating on expanding its presence in the pre-owned market,which represents aconsistent revenue stream.Bombardier anticipates potential revenues of$500 million to$1.0 billion from thismarket segment by 2030.Stronger balance sheet and robust cash generationThe Corporation remains committed t

100、o strengthen its financial position by focusing on its balance sheet,optimizing liquidity,and progressing towards its objective to achieve an adjusted net debt to adjusted EBITDAratio(4)within a targeted range of 2.0 x to 2.5x.Bombardier will continue to focus on strengthening its balance sheet and

101、improving its capital structure in the future.Deploying capital allocation framework beyond 2025During its Investor Day,Bombardier presented its ROIC-focused capital allocation framework,emphasizingdisciplined deployment of excess liquidity within its capital structure,and to support both inorganic

102、growthinitiatives and enhancements to its product lineup.The Corporations commitment and actions are aligned withcreating shareholder value and ensuring the long-term success of Bombardier.(1)This Strategic Priorities section includes a number of forward-looking statements.See the forward-looking st

103、atements disclaimer in the Overview section of this MD&A.(2)Excludes Services spend.(3)Source:Bombardier analysis.(4)Non-GAAP financial ratio.A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might

104、not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.BOMBARDIER INC./2024 FINANCIAL REPORT 11KEY PERFORMANCE MEASURES AND

105、 METRICSThe table below summarizes key performance measures and associated metrics evaluated.KEY PERFORMANCE MEASURES AND ASSOCIATED METRICSGROWTH AND COMPETITIVE POSITIONING Order backlog(1),as a measure of future revenues.Revenues and delivery units,as measures of growth.Market share(in terms of r

106、evenues and units delivered),as a measure of our competitive positioning.PROFITABILITY Net income(loss),adjusted net income(loss)(2),EBIT,EBIT margin(3),adjusted EBIT(2),adjusted EBIT margin(4),adjusted EBITDA(2),adjusted EBITDA margin(4),diluted EPS and adjusted EPS(4),as measures of performance.LI

107、QUIDITY Free cash flow(2),as a measure of liquidity generation.Cash and cash equivalents and available liquidity(2)(5),as measures of liquidity adequacy.CAPITAL STRUCTURE Adjusted net debt(2)(5).Adjusted net debt to adjusted EBITDA ratio(4)(5).CUSTOMER SATISFACTION On-time aircraft deliveries,as a m

108、easure of meeting our commitment to customers.Fleet dispatch reliability,as a measure of our products reliability.Regional availability of parts and technical expertise to support customer requests in a timely manner,as a measure of meeting customer needs for the entire life of the aircraft.On-time

109、return to service and high-quality workmanship at Bombardier-owned maintenance facilities,as a measure of efficiency.EXECUTION Achievement of program development milestones,as a measure of flawless execution.(1)Represents order backlog for both manufacturing and Services.(2)Non-GAAP financial measur

110、e.A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this M

111、D&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(3)Supplementary financial measure.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics.(4)Non-GAAP financial ratio.A non-GAAP financial ratio is not a st

112、andardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and r

113、econciliations to the most comparable IFRS measures.(5)Refer to Capital structure section of this MD&A for information on adjusted net debt and adjusted net debt to adjusted EBITDA ratio;refer to Liquidity and capital resources section of this MD&A for information on available liquidity.12 BOMBARDIE

114、R INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024FIVE-YEAR SUMMARYFor the fiscal years ended December 312024 2023 2022 2021 2020 ProfitabilityRevenues(1)$8,665$8,046$6,913$6,085$6,487 Adjusted EBITDA(1)(2)$1,360$1,230$930$639$197 Adjusted EBITDA margin(1)(3)15.7%15.3%13.5%10.5%3.0%Adjusted E

115、BIT(1)(2)$915$799$515$222$(214)Adjusted EBIT margin(1)(3)10.6%9.9%7.4%3.6%(3.3)%EBIT(1)$878$793$538$241$912 EBIT margin(1)(4)10.1%9.9%7.8%4.0%14.1%Net income(loss)from continuing operations$370$490$(128)$(249)$(170)Net income(loss)from discontinued operations(5)$(45)$(20)$5,319$(398)Net income(loss)

116、$370$445$(148)$5,070$(568)Diluted EPS(in dollars)$3.40$4.24$(1.88)$50.54$(9.19)Adjusted net income(loss)(1)(2)$547$416$104$(327)$(1,118)Adjusted EPS(in dollars)(1)(3)$5.16$3.94$0.77$(3.67)$(11.79)(1)Only from continuing operations.(2)Non-GAAP financial measure.A non-GAAP financial measure is not a s

117、tandardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and

118、reconciliations to the most comparable IFRS measures.(3)Non-GAAP financial ratio.A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other

119、 issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(4)Supplementary financial measure.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of the

120、se metrics.(5)Discontinued operations are related to the sale of the Transportation business.The expenses recorded in discontinued operations for fiscal years 2023 and 2022 principally relate to change in estimates of a provision for professional fees.FIVE-YEAR SUMMARYFor the fiscal years ended and

121、as at December 31 2024 2023 2022 2021 2020 LiquidityCash flows from operating activitiesContinuing operations$405$623$1,072$332$(1,672)Discontinued operations$(621)$(1,149)$405$623$1,072$(289)$(2,821)Net additions to PP&E and intangible assetsContinuing operations$173$366$337$232$221 Discontinued op

122、erations$133$173$366$337$232$354 Free cash flow(usage)(1)Continuing operations$232$257$735$100$(1,893)Discontinued operations$(621)$(1,282)$232$257$735$(521)$(3,175)Cash and cash equivalents(2)$1,653$1,594$1,291$1,675$2,450 Current portion of long-term debt$299(3)$1,882 Long-term debt$5,246$5,607$5,

123、980$7,047$8,193(1)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and

124、 other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(2)Includes cash and cash equivalents from Transportation of$671 million presented under Assets held for sale as of December 31,2020.(3)Represents the partial repa

125、yment of the Senior Notes due 2027 for an aggregate amount of$300 million that the Corporation announced in December 2024,which was completed in January 2025.BOMBARDIER INC./2024 FINANCIAL REPORT 132024 GUIDANCE AND FORWARD-LOOKING STATEMENTS2024 Guidance and Results2024 guidance provided in our 202

126、3 Financial Report(1)2024 resultsAircraft deliveries(in units)150-155146Revenues$8.4 billion-$8.6 billion$8.7 billionAdjusted EBITDA(2)$1.30 billion-$1.35 billion$1.36 billionAdjusted EBIT(2)$850 million-$900 million$915 millionEBITn/a$878 millionFree cash flow(2)$100 million-$400 million$232 millio

127、nCash flows from operating activitiesn/a$405 millionNet additions to PP&E and intangible assetsn/a$173 millionDeliveries for the year totaled 146 aircraft,below the 150 to 155 unit guidance range for 2024 mainly due to supply chain issues.Revenues for the full year of$8.7 billion were above guidance

128、 mainly due to aircraft delivery mix,and stronger Services performance.Full year adjusted EBITDA(2)and adjusted EBIT(2)were$1.36 billion and$915 million respectively,and above guidance as a result of margin conversion on higher revenues than guidance and lower costs including R&D expense,partly offs

129、et by supply chain disruption costs.Full year free cash flow(2)generation from continuing operations was in line with guidance at$232 million for 2024,driven by higher earnings,lower contract liabilities and higher supplier contributions to aerospace programs.(1)Refer to our 2023 Financial Report fo

130、r further details.(2)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP

131、and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.14 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024Forward-looking Statements DisclaimerThis MD&A includes forward-looking statements,which ma

132、y involve,but are not limited to:statements with respect to our objectives,anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto,targets,goals,priorities,market and strategies,financial position,financial performance,market posit

133、ion,capabilities,competitive strengths,credit ratings,beliefs,prospects,plans,expectations,anticipations,estimates and intentions;general economic and business outlook,prospects and trends of our industry;customer value;expected demand for products and services;growth strategies including,potential

134、revenues and year-over-year growth generated therefrom;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 execution of orders in general;compe

135、titive position;expectations regarding revenue and backlog mix;the expected impact of the legislative and regulatory environment and legal proceedings;strength of capital profile and balance sheet,creditworthiness,credit ratings,available liquidities and capital resources,expected financial requirem

136、ents,capital allocation and deployment of excess liquidity and ongoing review of strategic and financial alternatives;the introduction and anticipated results of productivity enhancements and profitability initiatives,operational efficiencies optimizing the use of our manufacturing and services faci

137、lities,cost reduction and potential future restructuring initiatives,and anticipated costs,intended benefits and timing thereof;the ability to continue business growth and cash generation;expectations,objectives and strategies regarding debt repayment,refinancing of maturities and interest cost redu

138、ction;compliance with restrictive debt covenants;expectations regarding the declaration and payment of dividends on our preferred shares;intentions and objectives for our programs,assets and operations;expectations regarding the availability of government assistance programs;the impact of new,or exa

139、cerbation of existing global health,geopolitical or military events,or international trade disputes or renegotiation of existing trade arrangements,on the foregoing and the effectiveness of our plans and measures in response thereto;and expectations regarding the strength of markets,economic downtur

140、ns or recession,and inflationary and supply chain pressures.In addition,statements that“we believe”and similar statements reflect our beliefs and opinions on the relevant subject.These statements are based on information available to us as of the date of this MD&A.While we believe that information p

141、rovides a reasonable basis for these statements,that information may be limited or incomplete.Our statements should not be read to indicate that we have conducted an exhaustive inquiry into,or review of all relevant information.These statements are inherently uncertain,and investors are cautioned no

142、t to unduly rely on these statements.Forward-looking statements can generally be identified by the use of forward-looking terminology such as“may”,“will”,“shall”,“can”,“expect”,“estimate”,“intend”,“anticipate”,“plan”,“foresee”,“believe”,“continue”,“maintain”or“align”,the negative of these terms,vari

143、ations of them or similar terminology.Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives,strategic priorities,expectations,guidance,outlook and plans,and in obtaining a better understanding of our

144、 business and anticipated operating environment.Readers are cautioned that such information may not be appropriate for other purposes.By their nature,forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties,which may cau

145、se our actual results in future periods to differ materially from forecast results set forth in forward-looking statements.While management considers these assumptions to be reasonable and appropriate based on information currently available,there is risk that they may not be accurate.The assumption

146、s underlying the forward-looking statements made in this MD&A include the following:alignment of production rates to market demand,including the supply base supporting our product development and production rates in a commercially acceptable and timely manner;deployment and execution of growth strat

147、egies,including our Services and Support,Pre-owned and Defense businesses;and mitigation of international trade disputes and protection measures(including tariffs)or changes to existing trade agreements.For additional information about these and other assumptions underlying the forward-looking state

148、ments made in this MD&A,refer to the Forward-looking statements-Assumptions section hereinafter.Given the impact of the changing circumstances surrounding new or continuing global health,geopolitical and military events,and new or threatened international protectionist trade policies or measures,as

149、well as the related response from the Corporation,governments(federal,provincial and municipal,both domestic,foreign and multinational inter-governmental organizations),regulatory authorities,businesses,suppliers,customers,counterparties and third-BOMBARDIER INC./2024 FINANCIAL REPORT 15party servic

150、e providers,there is an inherently higher degree of uncertainty associated with the Corporations assumptions.Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include,but are not limited to:operational risks(such as risks re

151、lated to business development and growth;order backlog;deployment and execution of our strategy,including cost reductions and working capital improvements and manufacturing and productivity enhancement initiatives;developing new products and services,including technological innovation and disruption

152、;the certification of products and services;pressures on cash flows and capital expenditures,including due to seasonality and cyclicality;doing business with partners;product performance warranty and casualty claim losses;environmental,health and safety concerns and regulations;dependence on a limit

153、ed number of contracts,customers and suppliers;supply chain risks;human resources risks including the departure of senior executives,the global availability of a skilled workforce,and the failure to attract and retain quality employees;reliance on information systems(including technology vulnerabili

154、ties,cybersecurity threats and privacy breaches);reliance on and protection of intellectual property rights;reputation risks;scrutiny and perception gaps sustainability and corporate social responsibility matters;adequacy of insurance coverage;acquisitions;risk management;and tax matters);financing

155、risks(such as risks related to liquidity and access to capital markets;substantial debt and interest payment requirements,including execution of debt management and interest cost reduction strategies;restrictive and financial debt covenants;retirement benefit plan risk;exposure to credit risk;and av

156、ailability of government support);risks related to regulatory and legal proceedings,as well as changes in laws and regulations;risks associated with general economic conditions and disruptions,both regionally and globally,that may impact our sales and operations;business environment risks(such as ri

157、sks associated with the financial condition of business aircraft customers;trade policy;increased competition;political instability and geopolitical tensions;financial and economic sanctions and trade control limitations;global climate change;and force majeure events);market risks(such as foreign cu

158、rrency fluctuations and changing interest rates,including our ability to hedge exposures thereto;increases in commodity prices;and inflation);and other unforeseen adverse events.For more details,see the Risks and uncertainties section in Other in this MD&A.Any one or more of the foregoing factors ma

159、y be exacerbated by new or continuing global health,geopolitical or military events,or new or exacerbated international trade disputes or renegotiation of existing trade arrangements,which may have a significantly more severe impact on the Corporations business,results of operations and financial co

160、ndition than in the absence of such events.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.Other risks and uncertainties not presently known to us or

161、 that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements.The forward-looking statements set forth herein reflect managements expectations as at the date of this report and are subject

162、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 statements,whether as a result of new information,future events or otherwise.The forward-looking statements contained

163、 in this MD&A are expressly qualified by this cautionary statement.16 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024Forward-looking statements AssumptionsForward-looking statements(1)in this MD&A are based on and subject to,without limitation,the following material assumptions:no

164、rmal execution and delivery of current backlog;the alignment of production rates to market demand,including the ability of the supply base to support product development and planned production rates on commercially acceptable terms in a timely manner;executing the ongoing development and entry-into-

165、service of the Global 8000 on cost and on target timeline;continued deployment and execution of growth strategies,and continued growth of the Services,Certified Pre-owned and Defense businesses;the ability to invest in our product portfolio;the accuracy of the analyses and assumptions underlying our

166、 business case including estimated cash flows and revenues over the expected life of our programs and thereafter;the accuracy of our estimates and judgments regarding the duration,scope and impacts of new or continuing global health,geopolitical or military events,on the economy and financial market

167、s,and on our business,operations,revenues,liquidity,financial condition,margins,cash flows,prospects and results in future periods;the ability to mitigate the impact on existing and future backlog of new or exacerbated international trade disputes,tariffs,trade protection measures(including any reta

168、liations to such measures),or renegotiation of existing trade agreements;the accuracy of our assessment of anticipated growth drivers and sector trends;the accuracy of our assessment of pricing,supply chain and inflation trends;new program aircraft prices,unit costs and ramp-up;the ability to unders

169、tand customer needs and portfolio of products and services to drive market demand and secure new orders and maintain the backlog level;continued deployment and execution of leading initiatives to improve revenue conversion into higher earnings and free cash flow(2),through improved procurement cost,

170、controlled spending and labour efficiency;the effectiveness of disciplined capital deployment measures in new programs and products to drive revenue growth;the ability to recruit and retain highly skilled resources;the continued renewal of labour agreements within planned amounts and with minimal/no

171、 disruption to our operations;the stability of the competitive global environment,global economic conditions and financial markets in the face of new or continuing global health,geopolitical or military events;the stability of foreign exchange rates at current levels;the ability to access the capita

172、l markets,on acceptable terms,as needed or opportunistically;the ability to have sufficient liquidity to execute the strategic plan and to pay down long-term debt or refinance maturities;and the ability to successfully defend ourselves against ongoing and future legal and regulatory proceedings.For

173、a discussion of the material risk factors associated with the forward-looking information,refer to the Risks and uncertainties section in Other.(1)Also refer to the forward-looking statements disclaimer of this MD&A.(2)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized fin

174、ancial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations

175、 to the most comparable IFRS measures.BOMBARDIER INC./2024 FINANCIAL REPORT 17PROFILELeading business jet portfolio,with Services and Defense driving company-wide growthWe skillfully design,build,maintain and market two class-leading families of business aircraft,Global and Challenger.In addition to

176、 our industry-leading portfolio of large and medium business jets,we are also outfitting various aircraft platforms for specialized mission use through Bombardier Defense.Bombardier also boasts an extensive service and support network that helps maintain more than 5,100 in-service Global,Challenger

177、and Learjet(1)aircraft across the U.S.,Europe,Asia-Pacific and the Middle East.With a continuously growing international network,Bombardiers customers have been able to significantly benefit from the expansion of the companys service and support offerings.Additional support is provided thanks to wor

178、ld-class depots,hubs,repair facilities and mobile response teams with available aircraft parts worldwide,ensuring rapid and effective support to our customers,wherever and whenever they need it.(1)Bombardier delivered its last Learjet aircraft in 2022 but continues to provide Services and Support fo

179、r the Learjet family of aircraft.MARKET SEGMENT:BUSINESS AIRCRAFTAll products specifications and data hereafter are approximate,may change without notice and are subject to certain operating rules,assumptions and other conditions.LARGE CATEGORY BUSINESS JETSModels:Global 8000(1),Global 7500,Global 6

180、500,Global 6000,Global 5500 and Global 5000Key highlights:Expertly designed to leave a lasting impression,the flagship Global aircraft family covers the large jet category with six aircraft models.In 2022,Bombardier unveiled its newest member,the Global 8000 aircraft.The jet,set to enter service in

181、2025,stands alone as the worlds fastest and longest-range purpose-built business jet,innovatively crafted with the smoothest ride and the industrys healthiest cabin.With a top speed of Mach 0.94,the Global 8000 is the fastest business jet in the skies.In 2024,Bombardier celebrated the delivery of it

182、s 200th Global 7500 aircraft.The industry-defining business jet has surpassed 200,000 flight hours,underscoring its status as business aviations most reliable and productive business jet.The aircraft now boasts more than 75 impressive city-pair speed records(2).Global 8000 aircraftSince its entry-in

183、to-service in 2018,the segment-defining Global 7500 aircraft has proven to be the highest performing business aircraft in service today,boasting a fleet dispatch reliability of more than 99.8%.It is also the first business jet to receive an EPD(3).The Global 7500 aircraft set more speed records than

184、 any aircraft in its class having flown more than 75 city-pair speed record missions on a number of key routes(2).Its four-zone cabin includes a full crew-rest area and provides an unprecedented array of floor plans and furnishing options.Featuring a revolutionary wing design and efficient Rolls Roy

185、ce Pearl engines,Bombardiers Global 5500 and Global 6500 aircraft boast farthest-in-class ranges,offering unrivalled performance and unsurpassed passenger comfort,all at exceptional operating costs.Both aircraft received their EPD(3)in 2023.All Global aircraft are specially engineered to deliver the

186、 industrys ultimate combination of speed and range,thanks in large part to the Smooth Flx Wing,engineered to provide the smoothest ride and uncompromising all-weather performance.Global aircraft also come equipped with Bombardiers Pr Air system.This system includes an advanced HEPA filter that captu

187、res up to 99.99%of allergens,bacteria and viruses while completely replacing the cabin air with 100%fresh air in as little as 90 seconds.In addition,the industrys fastest in-flight internet connectivity,combined with comprehensive cabin management systems,keeps passengers entertained and connected,w

188、hile the revolutionary Nuage seating provides the optimal seating and resting positions.18 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024(1)The Global 8000 aircraft is currently under development and remains to be finalized and certified.All specifications and data are approximat

189、e,may change without notice and are subject to certain operating rules,assumptions and other conditions.It is expected to enter service in 2025.(2)Speeds and distances referenced per FAI guidelines.Some records pending review by FAI,the World Air Sports Federation.(3)The International EPD System is

190、an environmental declaration program based in Sweden.It discloses fully transparent environmental information about the products life cycle,such as CO2 emissions,noise,water consumption and other key environmental impact indicators.MEDIUM CATEGORY BUSINESS JETSModels:Challenger 3500 and Challenger 6

191、50Key highlights:A masterful expression of high-end craftsmanship and functionality,Challenger aircraft feature productivity-enhancing business tools,with the most comfortable cabins in its category.All Challenger aircraft offer low operating costs,high reliability and the ultimate in-flight experie

192、nce with industry-leading connectivity.Challenger 3500 aircraftThe super-midsize Challenger 3500 aircraft,an update to Bombardiers bestselling Challenger 350 platform,has not only proven to be the right answer to customers evolving needs but also continues the platforms 10-year streak as the most de

193、livered super mid-size aircraft.The aircraft program celebrated its 100th delivery in 2024 and represents the ultimate combination of sustainability,performance and reliability.It features the most technologically advanced cabin in its class that introduces productivity enhancing features such as th

194、e industrys first voice-controlled cabin,as well as superior connectivity with global coverage.Bombardiers revolutionary Nuage seat adds to the in-flight comfort.The elegant and intuitively designed Challenger 3500 cabin received the 2022 Red Dot:“Best of the Best”Award:Product Design.The Challenger

195、 3500 is the most sustainably designed jet in its class.It is the first super mid-size jet with an EPD and the first business jet to achieve a carbon neutral flight test program.It also offers high-quality,sustainable cabin material options and introduces technology in the cockpit to help operators

196、fly more efficiently and reduce carbon emissions.The luxurious,award-winning cabin of a Challenger 3500 aircraftThe larger aircraft in Bombardiers Challenger family,the Challenger 650,continues to be a popular choice with customers,particularly corporations and fleet operators.Its winning combinatio

197、n of peak reliability,worldwide reach,widest-in-class cabin and lowest direct operating costs has made it the best-selling platform in its category,with over 1,000 deliveries and counting.Customers appreciate its 4,000 nautical mile range and ability to operate even in challenging airports such as A

198、spen or London City.Its spacious,productivity-minded cabin offers available seating for up to 12 passengers.Challenger 650 aircraft are famous for their spacious and elegant cabins.The Challenger 600 series has been the most delivered business jet platform in its segment for the last decade.The plat

199、form is also in high demand for specialized missions:there are more specialized Challenger 600 series aircraft in operation than all direct competitors combined.BOMBARDIER INC./2024 FINANCIAL REPORT 19BOMBARDIER DEFENSEModels:Challenger and Global business jetsKey highlights:Bombardier Defense desig

200、ns,develops and delivers a range of capabilities to operators around the world.Bombardier Defense has delivered over 500 specialized aircraft worldwide to over 170 operators located in more than 50 countries.Decades of experience working with special mission operators and its diverse fleet of busine

201、ss aircraft platforms make Bombardiers Global and Challenger aircraft the ideal solution for special-mission solutions,from surveillance and reconnaissance to urgent humanitarian assistance,medical evacuations and VIP transport.Solutions range from turnkey packages of complete design,building,testin

202、g and certification to specialized engineering support and technical oversight of customer projects.Bombardier has successfully delivered platforms for intelligence,surveillance and reconnaissance(ISR)missions and is becoming the service provider of choice for multiple armed forces and foreign allie

203、s.BOMBARDIERS PRE-OWNED AIRCRAFT OFFERINGS Models:Learjet,Challenger and Global business jetsKey highlights:Conscious that every customer has unique needs,Bombardier offers a complete pre-owned services umbrella,including customizable products and programs for buyers.Bombardiers Pre-owned segment no

204、w includes four possible options for customers:a premium class of pre-owned products(Certified Pre-owned(CPO)aircraft),light refurbishments,broker agreements and client-directed acquisitions.Launched in 2021,Bombardiers CPO aircraft program continues to provide a premium class of pre-owned aircraft,

205、harnessing Bombardiers product knowledge,as well as its world-renowned refurbishment capabilities and valuation know-how.For buyers seeking a“like-new”experience,Bombardiers CPO aircraft program delivers aircraft equipped with the latest safety and cabin enhancements,all while providing the new airc

206、raft delivery experience customers are looking for.Each available aircraft is meticulously selected,inspected and updated to adhere to Bombardiers highest quality and safety standards.Every CPO aircraft is backed by an exclusive manufacturer one-year warranty(1)which extends to operational support d

207、uring the first year,just like with any new Bombardier aircraft.(1)One-year warranty on the airframe.Certain conditions apply.20 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024MARKET SEGMENT:SERVICES AND SUPPORTWORLDWIDE SUPPORTServices portfolio:Extensive,worldwide capabilities t

208、o maximize scheduled maintenance as well as value-added packages,including refurbishment and modification of business aircraft,and component repair and overhaul services.Through OEM expertise,a wide variety of services can be performed in house,as well as by dispatching mobile response teams to cust

209、omers aircraft.Key highlights:Bombardier offers worldwide service and support with 10 service centers,9 line maintenance stations,Mobile Response Teams(MRT)and network of 16 authorized service facilities that support customers with aircraft-on-ground(AOG)resolutions.Bombardiers customer centric mind

210、set is at the core of our Services and Support operations and is backed by the companys long-standing commitment to operational excellence.In 2024,Bombardier ranked#1 among business jet manufacturers for customer support(1).CONVENIENT SERVICE SOLUTIONSServices portfolio:Bombardier provides manufactu

211、rer-approved parts backed by an industry-leading two-year warranty,as well as repairs to customer owned parts.A growing portfolio of innovative cost-per-flight-hour parts and maintenance plans are also available for Bombardiers Learjet,Challenger and Global aircraft.Options include Bombardiers indus

212、try-defining Smart Services offering,which can be tailored to include landing gear overhaul and unscheduled maintenance coverage,among other selections.Key highlights:Bombardier offers 24/7 parts support with parts facilities worldwide anchored by two major hubs in Chicago and Frankfurt,as well as f

213、our regional depots.A sophisticated inventory management system ensures worldwide parts availability throughout the depot and hub network,as well as the wholly-owned service centers.Repair facilities in North America and Europe provide repair services on customer-owned parts.A network of aircraft is

214、 available to shuttle in parts to support AOG requirements.24/7 CUSTOMER ASSISTANCEServices portfolio:Bombardiers comprehensive customer support network includes 24-hour customer response centers,enhanced online service tools,customer services engineering,MRT trucks,structural repair,technical publi

215、cations and EIS support.Key highlights:Bombardier provides operators with a single point of contact,24 hours a day,365 days a year,for all critical AOG requests.The company also supports all customer requirements from EIS throughout ownership of the aircraft by leveraging a global support network of

216、 strategically located teams.In 2022,Bombardier significantly enhanced its customer support footprint around the world with the inauguration of expanded service centers in Singapore and London-Biggin Hill,and the opening of new facilities in Miami-Opa Locka and Melbourne,Australia.Since then,the com

217、pany has expanded its mobile response offerings,added a Line Maintenance Station and improved its Customer Response Center capabilities.This extensive service and support transformation underscores Bombardiers ongoing commitment to providing the most comprehensive onsite,mobile and AOG resolution se

218、rvices in the industry.(1)Bombardier ranked#1 in Aviation International News Product Support Survey for 2024.BOMBARDIER INC./2024 FINANCIAL REPORT 21Information on this page reflects Bombardiers worldwide presence at the end of Q4 2024.22 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31

219、,2024INDUSTRY AND ECONOMIC ENVIRONMENTPerformant and resilient industry driven by strong activity and healthy backlogIn 2024,business aviation indicators showed positive trends following the impressive recovery after the global pandemic.Inventory level in the pre-owned aircraft market grew but remai

220、ned significantly below historical levels,flight activity for the industry remained comparable to 2023 and the industry continued to maintain a healthy backlog.Overall,business aviation remained favorable and resilient throughout 2024 despite continued supply chain constraints and a moderating overa

221、ll global economic growth.As inflation continues to fall worldwide and global GDP growth expected to be at 2.8%for 2025,central banks are expected to continue cutting interest rates to make monetary policy less restrictive(1).This will be positive for the business aviation industry,and combined with

222、 a healthy 24-month industry backlog on average,should support continued growth in industry deliveries for 2025.Business jet flight hours remained stable year-over-year compared to 2023 with a 0.1%increase(2).Bombardier aircraft flight hours followed the trend but performed slightly better than the

223、industry with a 0.5%increase(2).Bombardier aircraft flight hours for the fleet operators increased by 6.4%year-over-year compared to 2023(2).Regionally,industry flight hours for aircraft departing North America,South America and the Caribbeans increased by 0.7%,when compared to 2023(2).For aircraft

224、departing Europe,Middle East and Africa,flight hours decreased by 1.0%and for aircraft departing the Asian Pacific region flight hours also fell by 5.5%,when compared to 2023(2).Despite the stability in the overall yearly flight hours across the industry,when comparing to its equivalent in the last

225、pre-pandemic year,total flight hours increased by 34.8%(2).Again this year,the pre-owned market and its stakeholders were affected by poorer economic conditions in the market.At the end of 2024,the total number of pre-owned aircraft available for sale,expressed as a percentage of the total in-servic

226、e fleet,was estimated at 7.5%compared to 6.5%at the same period in 2023(3).While pre-owned inventory as a percentage of the total in-service fleet increased gradually since the end of 2023 by approximately one percentage point,the overall level remains well below the historical averages and should c

227、ontinue to favour a more balanced market.Pre-owned business jets for Bombardiers Challenger models as a percentage of the total Challenger in-service fleet remained stable in the end of 2024 at 5.8%from 5.9%last year(3),below industry average for medium sized aircraft.Pre-owned business jets for Bom

228、bardiers Global models as a percentage of the total Global in-service fleet fell to 7.0%in the end of 2024 from 7.4%last year(3),still above industry average for large aircraft.Industry confidence,measured by the Barclays Business Jet Indicator,rose above the 50-point threshold of market stability a

229、nd settled at 52 points in its last survey of 2024,its highest rating since Q1 2023(4).The survey results and commentary highlighted election optimism,OEM book-to-bills and improvement in outlook for the increase in index.Finally,the industry delivered an estimated total of 611 units in 2024,up 7%ye

230、ar-over-year(5).For reference,in the last 10 years the industry delivered 570 aircraft on average.BOMBARDIER INC./2024 FINANCIAL REPORT 23The following key indicators are used to monitor the health of the business aviation market in the short-term:INDICATORCURRENT SITUATIONSTATUSINDUSTRY CONFIDENCEI

231、n the first nine months of 2024,the Barclays Business Jet Indicator was below the 50-point threshold of market stability.However,as of Q4 2024,the index increased by 27%since the last survey to reach 52 points(4).CORPORATE PROFITSForecasted U.S.corporate profits are expected to remain strong for the

232、 remainder of 2024,with Q3 profits increasing to$3.8 trillion for 2024,compared to$3.7 trillion at the end of 2023(6).PRE-OWNED BUSINESS JETS INVENTORY LEVELSThe total number of pre-owned aircraft available for sale as a percentage of the total worldwide fleet has increased gradually throughout 2024

233、 and is now at 7.5%(3).It remains below the industry historical average(3).AIRCRAFT UTILIZATION RATESBusiness jet flight hours departing the Americas increased by 0.7%,departing Europe,Middle East and Africa decreased by 1.0%and departing Asia Pacific decreased by 5.5%in 2024 compared to 2023(2).Com

234、pared to 2019,flight hours increased for all the departure regions combined by about 34.8%(2).AIRCRAFT SHIPMENTS AND BILLINGSIn the business aircraft market categories in which we compete,we estimate that business aircraft deliveries and revenues in 2024 increased by 7%and 17%,respectively,compared

235、to 2023(5).Identifies a favorable,neutral or negative status,respectively,in the market categories in which we compete,based on the current environment.(1)According to Oxford Economics Report dated December 16,2024.(2)According to WingX data,excludes very light jets and large corporate airliners,as

236、of January 6,2025.Fleet operators tracked are Vista Global,NetJets,Flexjets,Airshare and Wheels Up.(3)According to JETNET and Ascend(by Cirium).(4)According to the Barclays Business Jet Survey dated December 2,2024.(5)Based on our estimates,public disclosure records of certain competitors,the Genera

237、l Aviation Manufacturers Association(GAMA)shipment reports,Ascend(by Cirium)and B&CA Magazine list prices,as of January 29,2025,excludes very light jets and large corporate airliners.(6)According to the U.S.Bureau of Economic Analysis News Release dated December 19,2024.24 BOMBARDIER INC.FINANCIAL R

238、EPORT-FISCAL YEAR ENDED DECEMBER 31,2024BUSINESS JET INDICATOR*(for calendar quarters;average on a 100-point scale)746354554239433842434152IndexStability threshold=50Q1 2022Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Source:Barclays.*The Business Jet Indicator is a m

239、easure of market confidence from industry professionals,gathered through regular surveys of brokers,dealers,manufacturers,fractional providers,financiers and others.FLIGHT HOURS FOR AIRCRAFT DEPARTING THE AMERICAS(for calendar years)2,4863,7514,1134,0334,061Thousands of flight hours for all business

240、 jets20202021202220232024Source:WingX,excludes very light jets and large corporate airliners,as of January 6,2025.Segmentation methodology used in the calculation of the flight hours has been adjusted from the year 2023.PRE-OWNED BUSINESS JET INVENTORY*(as at end of)LightMediumLargeTotal201520162017

241、20182019202020212022202320240%2%4%6%8%10%12%14%Sources:JETNET and Cirium.*As a percentage of total business jet fleet,excluding very light jets.As at Q4 2024,the percentages for Total,Large,Medium and Light were 7.5%,6.6%,8.3%and 7.3%,respectively.Represents the approximate 10 year rolling average c

242、alculated for Total as at December 31,2024(8.1%).FLIGHT HOURS FOR AIRCRAFT DEPARTING EUROPE,MIDDLE EAST AND AFRICA(for calendar years)6549631,0911,0411,031Thousands of flight hours for all business jets20202021202220232024Source:WingX,excludes very light jets and large corporate airliners,as of Janu

243、ary 6,2025.Segmentation methodology used in the calculation of the flight hours has been adjusted from the year 2023.BOMBARDIER INC./2024 FINANCIAL REPORT 25Short-term outlookAs per the latest data available,global GDP growth is expected to fall short at 2.7%in 2024 and increase slightly at 2.8%in 2

244、025(1).Central banks are expected to continue cutting interest rates to make monetary policy less restrictive.Many policy makers have warned that it will take more time to reach the 2%core inflation target due to services inflation slowing less sharply and a still tight U.S.labor market(1).On the fi

245、scal policy side,in many economies,a certain consolidation of spending is expected due to high deficit/debt levels.In the U.S.though,we could see higher spending in the short term and extension of tax cuts.An uncertain geopolitical environment and acceleration of tariffs and possibly deglobalization

246、 are the other key factors that will impact world trade growth and global short-term outlook.From an industry perspective,while pre-owned inventory levels have risen in 2024,they are unlikely to reach pre-pandemic levels in the short-term.Higher levels of inventory could also put downward pressure o

247、n pricing favoring activity in the pre-owned market.This coupled to a strong and balanced aircraft backlog for the industry will continue to support moderate growth.Continued high levels of flight activity will sustain growth in services and demand for aircraft from fleet operators.Industry revenues

248、 are expected to continue to grow driven by the increasing contribution of large aircraft in the overall industry delivery mix.(1)According to Oxford Economics Report dated December 16,2024.Long-term outlook In the longer term,a majority of demand drivers are on the positive side.We continue anticip

249、ating that wealth creation and the ongoing rise of developing countries will expand our customer base.The retirement of older models combined with the introduction of new models will help meet the needs of new customers.The continued trend and evolution of new ownership models,such as fractional and

250、 charter businesses,will allow business aviation travel to be even more accessible than before.Business aviation is set for expansion and with the industrys most extensive product portfolio,we are confident in our strong positioning.Customer servicesIn 2024,as a result of its efforts towards improvi

251、ng customer service,Bombardier was voted#1 in the Aviation International News 2024 Product Support Survey,coming out ahead of our competition.Bombardier also hosted numerous industry events this year,such as the Safety Standdown,the Flight Attendant Safety Standdown as well as maintenance and operat

252、ions conferences in Europe,North America and Asia.Bombardier also hosted customer appreciation events in the spring to thank customers for their loyalty.These initiatives and recognitions throughout 2024 are consistent and a positive indication of Bombardiers success in continuously improving its cu

253、stomers satisfaction.Bombardier is ensuring consistent and reliable access to Services for current and future customers across the globe.Demand for Services and Support is driven by the size of the fleet of Bombardier business aircraft,by the number of hours flown by said fleet and the average age o

254、f the fleet.Market indicators INDICATORCURRENT SITUATIONSTATUSINSTALLED BASEThe installed base for Bombardier business aircraft increased by 0.3%.The medium and large categories increased by approximately 3.4%in 2024 when compared to 2023,while the light and very light decreased by 4.7%.The total fl

255、eet adds up to more than 5,100 aircraft(1).YEARLY TOTAL FLIGHT HOURSBased on our estimates,Bombardier business aircraft fleet total flight hours increased by approximately 1.5%in 2024 compared to 2023 and increased by about 19.2%compared to 2019(2).Yearly average flight hours per aircraft decreased

256、by about 2.4%in 2024 compared to 2023(2).AVERAGE AGE OF FLEETTypically,aircraft direct maintenance costs increase as an aircraft age.Therefore,the average age of the fleet of Bombardier aircraft will impact the size of the maintenance market.The average age of the Bombardier business aircraft fleet

257、increased by 3.4%in 2024 compared to 2023(1).Identifies a favorable,neutral or negative status,respectively,in the market categories in which we compete,based on the current environment.(1)Based on data obtained from fleet database Ascend(by Cirium).(2)Based on yearly data from internal Bombardier F

258、RACAS database,as of January 15,2025.26 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024Short-term outlookFlight activity in 2024 has continued to surpass pre-pandemic levels and mirrors the activity seen in 2023.This robust flight activity is expected to drive short-term demand fo

259、r Services and fleet operators.With the expansions and new builds completed,along with the ongoing development of our customer-centric approach throughout 2024,we are poised to enhance the accessibility and reach of our services globally.Additionally,we will continue to strategically evaluate furthe

260、r expansions or offerings to grow our Services market share,improve response times,and strengthen relationships worldwide.Long-term outlookThe ongoing expansion of the installed base of aircraft is anticipated to boost demand for customer services.While traditional markets like North America remain

261、dominant in market size,the growth of business aircraft fleets in emerging markets since 2019 is expected to drive new opportunities for Services globally.BOMBARDIER INC./2024 FINANCIAL REPORT 27CONSOLIDATED RESULTS OF OPERATIONSResults of operationsFourth quarters ended December 31Fiscal years ende

262、d December 312024202320242023Revenues Business aircraft Manufacturing and Other(1)$2,575$2,571$6,580$6,261 Services(2)524 482 2,036 1,748 Others(3)9 9 49 37 Total revenues 3,108 3,062 8,665 8,046 Cost of sales 2,487 2,480 6,880 6,415 Gross margin 621 582 1,785 1,631 SG&A 135 137 478 447 R&D 121 158

263、361 373 Other expense(income)16 12 63 15 Restructuring charges(4)4 1 3 1 Loss(gain)related to disposal of business(5)(19)(81)Impairment and program termination(6)3 82 2 83 EBIT 342 211 878 793 Financing expense 297 159 677 594 Financing income(6)(170)(55)(202)EBT 51 222 256 401 Income taxes expense(

264、recovery)(73)7 (114)(89)Net income(loss)from continuing operations$124$215$370$490 Net income(loss)from discontinued operations(7)(45)Net income$124$215$370$445 EPS(in dollars)Basic$1.18$2.15$3.45$4.34 Diluted$1.16$2.11$3.40$4.24 EPS from continuing operations(in dollars)Basic$1.18$2.15$3.45$4.81 Di

265、luted$1.16$2.11$3.40$4.70 As a percentage of total revenuesGross margin(8)20.0%19.0%20.6%20.3%EBIT margin(8)11.0%6.9%10.1%9.9%(1)Includes revenues from sale of new aircraft,pre-owned aircraft and Defense.(2)Includes revenues from Services and Support including parts,Smart Services,service centers,tr

266、aining and technical publications.(3)Includes revenues from sale of components related to commercial aircraft programs.(4)Includes severance charges or related reversal,as well as curtailment losses(gains),if any.(5)Includes changes in provisions related to past divestitures.(6)Includes impairment o

267、r reversal of impairment of PP&E and intangible assets,as well as provisions related to program termination or their related reversal,if any.For fiscal year 2023,includes impairment of$85 million related to an aircraft product upgrade,started in 2018 and paused in 2020.(7)Discontinued operations are

268、 related to the sale of the Transportation business.The expenses recorded in discontinued operations for fiscal year 2023 principally relate to change in estimates of a provision for professional fees.(8)Supplementary financial measure.Refer to the Non-GAAP and other financial measures section of th

269、is MD&A for definitions of these metrics.28 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024Computation of diluted EPS(1)Fourth quarters ended December 31Fiscal years ended December 312024202320242023Net income$124$215$370$490 Preferred share dividends,including taxes(8)(8)(31)(31)

270、Net income attributable to common equity holders of Bombardier Inc.$116$207$339$459 Weighted-average diluted number of common shares (in thousands)100,548 98,409 99,966 97,721 Diluted EPS(in dollars)$1.16$2.11$3.40$4.70(1)Only from continuing operations.Other non-GAAP financial measures,non-GAAP fin

271、ancial ratios and closest IFRS measuresFourth quarters ended December 31Fiscal years ended December 312024202320242023EBIT$342$211$878$793 Adjusted EBIT(1)$356$278$915$799 Adjusted EBIT margin(2)11.5%9.1%10.6%9.9%Adjusted EBITDA(1)$513$458$1,360$1,230 Adjusted EBITDA margin(2)16.5%15.0%15.7%15.3%Net

272、 income(3)$124$215$370$490 Adjusted net income(1)$311$143$547$416 Diluted EPS(in dollars)(3)$1.16$2.11$3.40$4.70 Adjusted EPS(in dollars)(2)$3.01$1.37$5.16$3.94(1)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework u

273、sed to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(2)Non-GAAP financ

274、ial ratio.A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of

275、this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(3)Only from continuing operations.Analysis of consolidated resultsRevenuesRevenues for the three-month period ended December 31,2024 increased by$46 million year-over-year mainly due to:Services reve

276、nues increased by$42 million year-over-year.Revenues for the fiscal year ended December 31,2024 increased by$619 million year-over-year mainly due to:Manufacturing and other revenues increased by$319 million year-over-year mainly due to higher medium aircraft deliveries and higher selling prices;and

277、Services revenues increased by$288 million year-over-year.BOMBARDIER INC./2024 FINANCIAL REPORT 29Gross margin(1)Gross margin(1)as a percentage of revenues for the three-month period ended December 31,2024 increased year-over-year by 1.0 percentage points,mainly as a result of higher contributions f

278、rom aircraft margins partially offset by lower percentage contributions from Services.Gross margin(1)as a percentage of revenues for the fiscal year ended December 31,2024 increased year-over-year by 0.3 percentage points,mainly as a result of higher contributions from medium aircraft and Services p

279、artially offset by lower contributions from large aircraft.EBIT margin(1)and adjusted EBIT margin(2)Adjusted EBIT margin(2)for the three-month period ended December 31,2024 increased by 2.4 percentage points,mainly as a result of:higher contributions from aircraft margins;andlower R&D expense.Partia

280、lly offset by:lower percentage contributions from Services.EBIT margin(1)for the three-month period ended December 31,2024 increased by 4.1 percentage points year-over-year.EBIT includes certain amounts not included in adjusted EBIT(3)such as statement of income line items;loss(gain)related to dispo

281、sal of business,impairment and program termination(reversals),restructuring charges(reversals)and certain pension related items(4)and non-commercial legal claims,included in other expense(income),where applicable.Adjusted EBIT margin(2)for the fiscal year ended December 31,2024 increased by 0.7 perc

282、entage points year-over-year,mainly as a result of:higher contributions from medium aircraft;higher contributions from Services;and lower R&D expense.Partially offset by:lower contributions from large aircraft;andhigher SG&A and other expenses.EBIT margin(1)for the fiscal year ended December 31,2024

283、 increased by 0.2 percentage points year-over-year.EBIT includes certain amounts not included in adjusted EBIT(3)such as statement of income line items;loss(gain)related to disposal of business,impairment and program termination(reversals),restructuring charges(reversals)and certain pension related

284、items(4)and non-commercial legal claims,included in other expense(income),where applicable.(1)Supplementary financial measure.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics.(2)Non-GAAP financial ratio.A non-GAAP financial ratio is not a stand

285、ardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reco

286、nciliations to the most comparable IFRS measures.(3)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other

287、 issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.(4)Includes the loss related to the purchase of pension annuities.See Note 22-Retirement benefits,to our Consolidated financial s

288、tatements,for more information.30 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024Net financing(income)expenseNet financing(income)expense amounted to$291 million and$622 million,respectively,for the fourth quarter and fiscal year ended December 31,2024,compared to$(11)million and$

289、392 million for the corresponding periods last fiscal year.The$302 million increase in net financing expense for the fourth quarter is mainly due to:net change on certain financial instruments classified as FVTP&L,mainly due to a non-cash change in fair value of embedded derivatives related to call

290、options on long-term debt($327 million).Partially offset by:losses related to the full repayment and/or partial repayment of certain Senior Notes($16 million).The$230 million increase in net financing expense for the fiscal year is mainly due to:net change on certain financial instruments classified

291、 as FVTP&L,mainly due to a non-cash change in fair value of embedded derivatives related to call options on long-term debt($139 million);losses related to the partial repayment of certain Senior Notes($73 million);andhigher interest on long-term debt($13 million).Income taxesThe effective income tax

292、 rate for the fourth quarter and fiscal year ended December 31,2024 is lower than the statutory income tax rate in Canada of 26.5%.The effective income tax recovery rates are due to the positive impact of the net recognition of previously unrecognized tax losses and temporary differences partially o

293、ffset by the negative impact of the permanent differences.The effective income tax rate for the fourth quarter and fiscal year ended December 31,2023 is lower than the statutory income tax rate in Canada of 26.5%.In the three-month period,the effective income tax rate is due to the positive impact o

294、f the permanent differences and the net recognition of previously unrecognized tax losses and temporary differences.For the fiscal year ended December 31,2023,the effective income tax recovery rate is due to the positive impact of the net recognition of previously unrecognized tax losses and tempora

295、ry differences and the permanent differences partially offset by the negative impact of the write-down of deferred income tax assets.BOMBARDIER INC./2024 FINANCIAL REPORT 31Product developmentInvestment in product developmentFourth quarters ended December 31Fiscal years ended December 31202420232024

296、2023Additions to aerospace program tooling(1)$17$33$92$113 R&D expense,gross(2)27 18 87 53$44$51$179$166 As a percentage of revenues 1.4%1.7%2.1%2.1%(1)Represents the net amount capitalized in aerospace program tooling,as well as the amount that was paid to suppliers based on reception of parts for

297、acquired development costs carried out by them.(2)Excludes amortization of aerospace program tooling of$130 million and$332 million,respectively,for the fourth quarter and fiscal year ended December 31,2024($149 million and$330 million,respectively,for the fourth quarter and fiscal year ended Decemb

298、er 31,2023),as the related investments are already included in aerospace program tooling,and excludes investment tax credits that were recognized as a reduction of R&D expense of$37 million and$58 million,respectively,for the fourth quarter and fiscal year ended December 31,2024 ($9 million and$10 m

299、illion,respectively,for fourth quarter and fiscal year ended December 31,2023).The testing and certification of the companys next flagship,the Global 8000(1),remained on track in 2024.EIS of this aircraft is set for 2025(2).Announced in 2022,the Global 8000 aircraft will have a range of 8,000 nautic

300、al mile and,with a top speed of Mach 0.94(3),will be the fastest in the industry.In October 2024,Bombardier announced that its manufacturing sites in Saint-Laurent(Qubec),Red Oak(Texas)and Qurtaro(Mexico)have begun to manufacture key components for the 1st Global 8000 production aircraft.In 2024,Bom

301、bardier continued to innovate and upgrade the systems and services it provides for in-service aircraft,as well as invest in programs with high rates of return,permitting the company to continue its growth trajectory while maintaining value.The company also made advancements in its EcoJet research pr

302、oject,leveraging the expertise of academic institutions to further the program.(1)The Global 8000 aircraft is currently under development and remains to be finalized and certified.All specifications and data are approximate,may change without notice and are subject to certain operating rules,assumpt

303、ions and other conditions.It is expected to enter service in 2025.(2)See the forward-looking statements disclaimer in the Overview section of this MD&A.(3)Under certain operating conditions,when compared to aircraft currently in service.Aircraft deliveries and order backlogAircraft deliveriesFourth

304、quarters ended December 31Fiscal years ended December 31(in units)2024202320242023Business aircraft Medium 28 24 73 63 Large 29 32 73 75 57 56 146 138 Order backlogAs at(in billions of dollars)December 31,2024December 31,2023Order backlog(1)$14.4$14.2(1)Represents order backlog for both manufacturin

305、g and Services.We finished the year with a strong order backlog of$14.4 billion.Management continuously monitors backlog length and production rates to balance with sales activities,market demand and aircraft manufacturing lead times.32 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2

306、024WorkforceTotal number of employeesAs at December 31,2024 December 31,2023Regular(1)17,900 17,100 Contractual 900 1,000 18,800 18,100 Percentage of regular employees covered by collective agreements 46%47%(1)Including inactive employees as at December 31,2024 and as at December 31,2023.The workfor

307、ce as at December 31,2024 increased by 700 employees,or 4%,when compared to the previous year.The increase is in support of our growth in aircraft production and services.Our incentive-based compensation plan for employees across our sites rewards the collective efforts of our employees in achieving

308、 our objectives using performance indicator targets.A total of approximately 11,300 employees worldwide,or 63%of regular employees,participate in the program.In 2024,as part of this program,incentive-based compensation is linked to the achievement of targeted results,based on adjusted EBITDA(1)and f

309、ree cash flow(1).Approximately 65%of the workforce as of December 31,2024,or 12,200 employees,are located in Canada.(1)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and

310、might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.BOMBARDIER INC./2024 FINANCIAL REPORT 33CONSOLIDATED FINANCIAL

311、 POSITIONThe$210 million increase in assets for the fiscal year is mainly explained by:a$277 million increase in inventories supporting a ramp up in production;a$225 million increase in deferred income tax assets;and a$76 million increase in trade and other receivables.Partially offset by:a$242 mill

312、ion decrease in aerospace program tooling as a result of amortization partially offset by additions;anda$172 million decrease in other financial assets(1).The$210 million increase in total liabilities and deficit for the year ended is mainly explained by a$413 million increase in equity(2)partially

313、offset by a$203 million decrease in liabilities.The$203 million decrease in liabilities is mainly due to:a$353 million decrease in contract liabilities due to aircraft mix and timing of pre-delivery payments;a$179 million decrease in retirement benefit liability mainly due to remeasurement of define

314、d benefits plans;anda$62 million decrease in long-term debt(3)obligations due to the partial repayment of certain Senior Notes partially offset by issuance of long-term debt.Partially offset by:a$475 million increase in other liabilities mainly due to supplier contributions to aerospace programs and

315、 deferred income.CONSOLIDATED ASSETS(as at December 31;in millions of dollars)12,45812,6685,9346,3776,5246,291Current assetsNon-current assets 20232024CONSOLIDATED LIABILITIES AND DEFICIT(as at December 31;in millions of dollars)12,45812,6685,9385,7736,5206,895Current liabilitiesNon-current liabilit

316、ies and deficit 20232024(1)For the purpose of the consolidated financial position,explanations included in this section do not include the impact of the back-to-back agreements the Corporation has with ACLP related to certain government refundable advances and has with MHI related to certain liabili

317、ties.Refer to Note 18 Other financial assets and Note 25 Other financial liabilities in our consolidated financial statements for more information.(2)Refer to the consolidated statements of changes in equity in our consolidated financial statements for more information.(3)Refer to Note 27 Long-term

318、debt in our consolidated financial statements for more information.34 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024LIQUIDITY AND CAPITAL RESOURCESFree cash flow(1)Free cash flow(1)Fourth quarters ended December 31Fiscal years ended December 312024202320242023Net income from cont

319、inuing operations$124$215$370$490 Non-cash itemsAmortization 157 180 445 431 Impairment charges on intangible assets 2 70 2 73 Deferred income taxes(recovery)(114)(4)(179)(105)Losses on disposals of PP&E 1 1 Share-based expense 6 8 23 24 Losses on repayments of long-term debt 16 127 54 Net change in

320、 non-cash balances 685 254 (383)(345)Cash flows from operating activities-continuing operations 860 740 405 623 Net additions to PP&E and intangible assets(46)(94)(173)(366)Free cash flow(1)$814$646$232$257(1)Non-GAAP financial measure.A non-GAAP financial measure is not a standardized financial mea

321、sure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers.Refer to the Non-GAAP and other financial measures section of this MD&A for definitions of these metrics and reconciliations to the mo

322、st comparable IFRS measures.Cash flows from operating activities-continuing operationsThe$120 million increase in cash flows from operating activities for the fourth quarter is mainly due to:a positive period-over-period variation in net change in non-cash balances($431 million)(see explanations bel

323、ow).Partially offset by:lower net income before non-cash items($311 million).The$218 million decrease in cash flows from operating activities for the fiscal year is mainly due to:lower net income before non-cash items($180 million);anda negative period-over-period variation in net change in non-cash

324、 balances($38 million)(see explanations below).Net change in non-cash balancesFor the fourth quarter ended December 31,2024,the$685 million inflow is mainly due to:a decrease in inventories due to aircraft deliveries;andan increase in other liabilities mainly due to supplier contributions to aerospa

325、ce programs and deferred income.Partially offset by:a decrease in contract liabilities due to aircraft mix and timing of pre-delivery payments.For the fourth quarter ended December 31,2023,the$254 million inflow was mainly due to:a decrease in inventories mainly due to higher aircraft deliveries.Par

326、tially offset by:a decrease in contract liabilities mainly due to aircraft deliveries;andan increase in net other financial assets and liabilities mainly due to a non-cash change in fair value of embedded derivatives related to call options on long term-debt.BOMBARDIER INC./2024 FINANCIAL REPORT 35F

327、or the fiscal year ended December 31,2024,the$383 million outflow is mainly due to:a decrease in contract liabilities due to aircraft mix and timing of pre-delivery payments;andan increase in inventories supporting a ramp up in production.Partially offset by:an increase in other liabilities mainly d

328、ue to supplier contributions to aerospace programs and deferred income.For the fiscal year ended December 31,2023,the$345 million outflow was mainly due to:an increase in inventories mainly to support higher deliveries;anda change in net other financial assets and liabilities partly due to residual

329、value guarantee payments related to past business divestitures.Partially offset by:an increase in trade and other payables mainly due to timing as well as production rate increase.Net additions to PP&E and intangible assetsFourth quarter ended December 31Fiscal years ended December 31202420232024202

330、3Net additions to PP&E and intangible assets$(46)$(94)$(173)$(366)For the fourth quarter and the fiscal year ended December 31,2024,net additions to PP&E and intangible assets decreased by$48 million and$193 million respectively,principally due to activities at the newly opened Aircraft Assembly Cen

331、ter at Pearson airport in Toronto last year.36 BOMBARDIER INC.FINANCIAL REPORT-FISCAL YEAR ENDED DECEMBER 31,2024Available liquidity(1)We continuously monitor our level of liquidity,including cash and cash equivalents and expected cash flows from operations,to meet expected requirements,including wo

332、rking capital needs,the support of product development initiatives and to ensure financial flexibility.In evaluating our liquidity requirements,we take into consideration historic volatility and seasonal needs,the maturity profile of long-term debt,the funding of product development programs,the lev

333、el of customer advances,working capital requirements,the economic environment and access to capital markets.We use scenario analyses to evaluate cash flow projections.Variation in cash and cash equivalentsFourth quarters ended December 31Fiscal years ended December 312024202320242023Balance at the beginning of period/fiscal year$872$987$1,594$1,291 Free cash flow(1)814 646 232 257 Changes to restr