market forecast - Bombardier

MARKET FORECAST 2015-2024

BOMBARDIER BUSINESS AIRCRAFT BUSINESSAIRCRAFT.BOMBARDIER.COM

FORWARD LOOKING STATEMENTS

This presentation includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, our market and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; our competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. While we consider our assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this presentation refer to the respective Guidance and forwardlooking statements sections in Overview, Bombardier Aerospace and Bombardier Transportation sections in the Management’s Discussion and Analysis (“MD&A”) in the Corporation’s financial report for the fiscal year ended December 31, 2014.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry and rail industry, political instability and force majeure), operational risks (such as risks related to developing new products and services; fixed-price commitments and production and project execution; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; the environment; dependence on certain customers and suppliers; human resources), financing risks (such as risks related to liquidity and access to capital markets, retirement benefit plan risk, exposure to credit risk, certain restrictive debt covenants, financing support provided for the benefit of certain customers and reliance on government support) and market risks (such as risks related to foreign currency fluctuations, changing interest rates, decreases in residual values and increases in commodity prices). For more details, see the Risks and uncertainties section in Other in the MD&A the Corporation’s financial report for the fiscal year ended December 31, 2014. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statement set forth herein reflect our expectations as at the date of this presentation and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement.

All amounts in this presentation are expressed in 2014 U.S. dollars unless otherwise indicated. Global 5000, Global 6000, Global 7000, Global 8000, Learjet 40, Learjet 45, Learjet 70, Learjet 75, Learjet 85, Challenger 350, Challenger 650, Bombardier, Bombardier Business Aircraft, Bombardier Vision and The Evolution of Mobility are either Unregistered or Registered Trade-Mark(s) of Bombardier Inc. or its subsidiaries. BOMBARDIER BUSINESS AIRCRAFT | MARKET FORECAST 2015-2024

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TABLE OF CONTENTS

1. INTRODUCTION AND EXECUTIVE SUMMARY 2. BOMBARDIER BUSINESS AIRCRAFT OVERVIEW 3. BUSINESS AIRCRAFT MARKET DRIVERS 4. BUSINESS AIRCRAFT MARKET FORECAST 5. FORECAST BY REGION 6. CONCLUSION 3

EXECUTIVE SUMMARY

INTRODUCTION Bombardier Business Aircraft is pleased to present its 2015 edition of the Business Aircraft Market Forecast, debuting at the European Business Aviation Convention and Exhibition in Geneva. The forecast provides an in-depth look at how six primary market drivers (wealth creation, globalization of trade, emerging markets, new aircraft programs, replacement demand and accessibility) will shape the future of business aviation over the next 10 years. This analysis focuses specifically on aircraft categories in which Bombardier competes: Light, Medium and Large, as well as major world regions.

THE BUSINESS JET MARKET IN 2014 In 2014, the business jet industry continued its path towards recovery, led by the strengthening North American economy. North American business jet orders and deliveries in the markets where Bombardier competes were strong in 2014, driven by solid domestic business investment, a thriving stock market and sustained consumer spending. However, orders and deliveries lagged in other regions as a result of several challenges which held back a broader recovery in the world economy. European GDP growth remained sluggish overall but gained some momentum in the later part of 2014.

China’s growth decelerated while Russia ended the year on the brink of recession due to falling oil prices and significant economic restrictions imposed by the western world. Last year the industry reached 601 aircraft deliveries, a 6% increase from 2013. Demand for long range business travel continued to grow, though at a slower pace, which resulted in a total of 200 deliveries for Large category aircraft. Medium category aircraft had 212 total deliveries, a modest recovery expected to accelerate as world GDP growth improves in upcoming years. Light category deliveries amounted to 189 aircraft, less than half the level of deliveries seen when the market peaked in 2008. Having secured more aircraft orders and deliveries since the downturn in 2009 than any other manufacturer, Bombardier Business Aircraft continues to hold its position as industry leader. In 2014, Bombardier Business Aircraft delivered 204 business aircraft, amounting to 34% delivery market share.

BOMBARDIER BUSINESS AIRCRAFT | MARKET FORECAST 2015-2024

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EXECUTIVE SUMMARY

BUSINESS JET VALUE PROPOSITION AND LONG-TERM VISION FOR THE INDUSTRY Business jets have proven to be a cost-effective, fast, and safe method of travel1. The benefits of business travel include on-demand flight scheduling, the ability to conduct business privately during flights, direct access to company sites and reduced travel time. While we acknowledge the slow growth facing the industry today, we believe the strong value proposition for business jets remains uncontested. In the long term, with continued wealth creation in mature markets and increased penetration of business jets in emerging markets, the overall market for business jets will show strong growth. As a result, our long-term forecast remains relatively unchanged from the forecast published last year.

Our 10-year delivery forecast predicts 9,000 business aircraft deliveries valued at $267 billion. In the following sections, we present our detailed forecast and analysis of the business jet industry for key regions across the world. In a series of studies conducted between 2009 and 2013, NEXA Advisors evaluated the impact of business jet ownership on small to large companies, as well as government agencies. Its most recent study on business aviation and the world’s top performing companies concluded that companies using business jets were likely to outperform non-users on revenue growth, innovation, employee satisfaction and market share. 1


5

BOMBARDIER BUSINESS AIRCRAFT Strength in numbers

2014 ACHIEVEMENTS

204 13% DELIVERIES

INCREASE VERSUS 2013

34% 10

TH

DELIVERY MARKET SHARE

CONSECUTIVE YEAR AS A LEADER1

PROGRAM MILESTONES

LEARJET

CHALLENGER

GLOBAL

DELIVERED

DELIVERED

DELIVERED

AND COUNTING

AND COUNTING

AND COUNTING

40/45/70/75 SERIES

600 1

Delivery unit leader in those segments where Bombardier competes.

300 SERIES

500


SERIES

600

6

BUSINESS AIRCRAFT MARKET DRIVERS Drivers have a positive relationship with the business aircraft market

WEALTH CREATION

GLOBALIZATION OF TRADE

EMERGING MARKETS

NEW AIRCRAFT PROGRAMS

REPLACEMENT DEMAND

ACCESSIBILITY

Expansion of economic activity in the world, measured by Gross Domestic Product

Expansion of trade from interregional partners to a globally connected economy

Growth of the world’s developing markets and the convergence of business jet adoption towards mature market levels

Introduction of new and technologically advanced aircraft models into the industry

Demand generated from the retirement of aircraft

Alternatives to full business jet ownership

The evolution of these drivers will shape the outlook of the industry BOMBARDIER BUSINESS AIRCRAFT | MARKET FORECAST 2015-2024

7

ECONOMIC DRIVERS

BUSINESS JET FLEET AND WORLDWIDE ECONOMIC GROWTH

1970

1980

1990

2000

2010

2014

FLEET (# aircraft)

830

2,000

4,650

8,650

14,150

15,735

WORLD ECONOMY ($ trillion)

18.5

27.3

37.4

49.3

65.2

72.3

Growth in the business jet fleet has followed growth of the world economy


8

15

,7 35

ECONOMIC DRIVERS

EMERGING EMERGENCE ECONOMIES

5

% POCKETS OF GROWTH OF NEW GDP GROWTH

15

,7 35

EXPANDING GLOBALIZATION OF TRADE

EMERGING ECONOMIES

3%

AVERAGE WORLD GDP

5%

GDP GROWTH

72 .3

2%

GDP GROWTH

3%

AVERAGE WORLD GDP

2014

72 .3

MATURE ECONOMIES

trillion)

2%

GDP GROWTH

2014 MATURE ECONOMIES

($ trillion)

Expanding globalization of trade is driving the need for direct city-to-city access

High growth economies are accounting for a greater share of world wealth


9

BUSINESS JET MARKET SEGMENTATION

In production: 34 In development: 14

VERY LIGHT

BOMBARDIER*

LIGHT

MEDIUM

LARGE

Learjet 70

Challenger 350

Global 5000

Learjet 75

Challenger 650

Global 6000

LARGE CORPORATE AIRLINERS

Global 7000 Global 8000

CESSNA

Mustang

CJ4

Citation X+

M2

XLS+

Longitude

CJ2+

Latitude

CJ3+

Sovereign+

DASSAULT EMBRAER

Phenom 100

GULFSTREAM

F2000S

F7X

F2000LXS

F5X

F900LX

F8X

Phenom 300

Legacy 500

Legacy 450

Legacy 650

G150

Lineage 1000E

G280

G500

G450

G550 G600 G650/G650ER

OTHER

INDUSTRY DRIVERS

Hondajet

PC-24

ACJ 318/319

SJ30-2

BBJ 1/2/3

Eclipse 550

BBJ Max 8/9

Introduction of several new and more capable models stimulates demand and replacement purchase decisions *

Learjet 85 program on pause


10

INDUSTRY DRIVERS

2,050

REPLACEMENT DEMAND

2,050

Full ownership

Full ownership

mulative siness jet tirements

0

ACCESSIBILITY

14 1980

Cumulative business jet 699 retirements

342 1960

1990

14 1970

2000

1980

699 342

2014

1990

2000

Branded charter

Branded charter

Air taxis

Air taxis

Fractional Fractional ownership ownership Jet card Jet card programsprograms

2014

Increased pace of retirements drives demand for replacement aircraft

Several alternatives to full business aircraft ownership exist that extend the benefits of private jet travel to many users


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MARKET DRIVERS OUTLOOK Future projections of key market drivers

WEALTH CREATION

The global economy is expected to continue improving. GDP growth is forecasted to cross the 3% threshold by 2016-2017.

NEW AIRCRAFT PROGRAMS

Several new models will enter service between 2015-2024 which will attract new buyers and stimulate replacement activity.

GLOBALIZATION OF TRADE

Trade globalization will continue, particularly with and between emerging markets, increasing the need for direct city-to-city access.

REPLACEMENT DEMAND

1,825 worldwide business aircraft retirements forecasted over the next 10 years will drive increased replacements.

EMERGING MARKETS

Fleet size in these regions is expected to continue growing as business jet adoption approaches mature market levels.

ACCESSIBILITY

Operators in the charter and fractional market are renewing their fleets. International expansion will drive future growth.

The outlook for the long-term drivers of business jet demand remains strong BOMBARDIER BUSINESS AIRCRAFT | MARKET FORECAST 2015-2024

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2015-2024

10 TOTAL

YEARS

LIGHT

MEDIUM

LARGE

$137B 3,400 $91B 3,100 38% $39B

51%

34% 34%

2,500 28%

15%

FORECAST BY AIRCRAFT SIZE CATEGORY

$267 9,000 Billion

Deliveries


13

FORECAST BY AIRCRAFT SIZE CATEGORY Light category KEY CHARACTERISTICS

10-YEAR FORECAST

3,400

TYPICAL PURCHASE PRICE

$9-20 M

3,100

8,770

CABIN VOLUME1 3

300 ft to 700 ft3

-

+

+

-

11,085

1,085 7,755

690

5,345

=

CAGR

=

2.4%

CAGR

3.8%

RANGE

2,000 to 3,000 NM

2014 Fleet

2014 Fleet

Light category aircraft offer intraregional range at an entry-level cost 1

Cabin volume of 8.5 m3 to 19.8 m3

Deliveries

Deliveries

+

+

Retirements

Retirements

-

-

2024 Fleet

2024 Fleet

=

=

Light category will generate a total of 3,400 deliveries from 2015 to 2024


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FORECAST BY AIRCRAFT SIZE CATEGORY Medium category KEY CHARACTERISTICS

10-YEAR FORECAST


3,100

$20-42 M

3,100

5,345

CABIN VOLUME1 3

700 ft to 1,500 ft3

-

+

+

-

7,755

690

7,755

690

5,345

=

CAGR

=

3.8%

CAGR

3.8%

RANGE

3,100 to 5,000 NM

2014 Fleet

2014 Fleet

Medium category aircraft offer greater cabin comfort, range and speed 1

Cabin volume of 19.8 m3 to 42.5 m3

Deliveries

Deliveries

+

+

Retirements

Retirements

-

-

2024 Fleet

2024 Fleet

=

=

Medium category will generate a total of 3,100 deliveries from 2015 to 2024


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FORECAST BY AIRCRAFT SIZE CATEGORY Large category KEY CHARACTERISTICS

10-YEAR FORECAST


$50-72 M

3,100

+

CABIN VOLUME 3 1

5,345

>1,500 ft

1,620

-

2,500

+

- 7,755 50

690

=

CAGR

9.6%

CAGR

4,070

=

3.8%

RANGE

>5,000 NM 2014 Fleet

2014 Fleet

Large category aircraft offer the greatest cabin comfort, range and speed 1

Cabin volume > 42.5 m3

Deliveries

Deliveries

+

+

Retirements

Retirements

-

-

2024 Fleet

2024 Fleet

=

=

Large category will generate a total of 2,500 deliveries from 2015 to 2024


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FORECAST BY REGION

TOTAL 2015-2024:

9,000 DELIVERIES

NORTH AMERICA

3,900

EUROPE

1,525 CIS

510

LATIN AMERICA

850

AFRICA MIDDLE EAST 275

400

SOUTH ASIA

310

GREATER CHINA

875

ASIA PACIFIC

355

North America, Europe, China and Latin America will be the largest markets for business aircraft over the next 10 years BOMBARDIER BUSINESS AIRCRAFT | MARKET FORECAST 2015-2024

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2.6%

FORECAST BY REGION NORTH AMERICA

$23.3

$18.1 2014

2015-2024 INDUSTRY DELIVERIES

ECONOMIC GROWTH

3,900 $96 Units

CAGR

2.6%

2024

FLEET GROWTH

CAGR

CAGR

2.6%

2%

Billion in revenue

12,715

10,090

KEY FACTS

$23.3aviation • Birthplace of business

$23.3

$18.1

$18.1

• Largest market for business aircraft

2015-2024 OUTLOOK 2014 2024

2014

$ U.S. trillion (2010)

• Average economic growth of 2.6% per year 2%

12,715

• Light and Medium category aircraft account for over 80% of deliveries 2014

2024

For the purposes of this forecast, North America includes the United States and Canada.

Units

LIGHT 2%

• Will remain the largest market for business aircraft

MEDIUM

LARGE

LIGHT

12,715

2,060

2,060

10,090

53%

$33B

34%

$24B

1,140

53%

$39B

29%

25%

2014

2024

FORECAST BY CATEGORY

CAGR

• Fleet compound CAGR annual growth rate of 2%

• Forecasted to receive 3,900 deliveries 10,090 valued at $96 billion

2014

2024

41%

700 18%

$

$24B 25%

2024


18

1.8%

FORECAST BY REGION EUROPE

$22.3

$18.6 2014


1,525 Units

CAGR

1.8%

$50

FLEET GROWTH

CAGR

CAGR

1.8%

7%

Billion in revenue

2,850

1,435

KEY FACTS

• Second largest$22.3 market for$18.6 business jet deliveries

2015-2024 OUTLOOK 2014

ECONOMIC GROWTH

2024

2024

• Average economic growth of 1.8% per year

2014

2024

Units FORECAST BY CATEGORY

CAGR

LIGHT 7%

% • Will remain 7the second largest market for business jet deliveries

• Medium and Large category aircraft account for almost 70% of deliveries

2014

2024


• Fleet compound annual CAGR growth rate of 7%

2,850 • Forecasted to receive 1,525 deliveries 1,435 valued at $50 billion

$22.3

$18.6

MEDIUM

500

62%

$14B 465

33%

28%

2024

For the purposes of this forecast, Europe includes the EU27 plus Albania, Andorra, Bosnia, Croatia, Iceland, Kosovo, Liechtenstein, Macedonia, Montenegro, Norway, Serbia, and Switzerland. European fleet and deliveries are adjusted to exclude deliveries to CIS-based owners that register their aircraft in Europe.

500

37%

$

33%

$5B

$5B 2014

560

30%

10%

2014

LIGHT

$31B

2,850

1,435

LARGE

10%

2024


19

6.5%

FORECAST BY REGION GREATER CHINA

$16.7

$8.9 2014


875 Units

CAGR

6.5%

ECONOMIC GROWTH

$33

FLEET GROWTH

CAGR

CAGR

6.5%

13%

Billion in revenue

1,255

385

KEY FACTS

$16.7 • Exceedingly fast fleet growth over the$8.9 last 10 years at more than 20% per year

2014

• Medium and Large category aircraft account for 90% of deliveries

For the purposes of this forecast, Greater China includes China, Hong Kong, Macau and Taiwan.

Units

LIGHT 13%

MEDIUM

1,255

385

$14B

475 55%

LARGE

LIGHT

$18B

$

55%

42%

310 35%

$1B 2024

2024


CAGR

CAGR annual • Fleet compound growth rate13of 13% %

385

2014

2024



• Forecasted to receive 875 deliveries valued at $33 billion1,255

$16.7

$8.9

2014 2024 2015-2024 OUTLOOK

2014

2024

2014

3%

90

$1B

10%

2024


3%

90 10%

20

3.3%

FORECAST BY REGION LATIN AMERICA

$7.9

$5.7 2014


850 Units

CAGR

3.3%

ECONOMIC GROWTH

$24

2024

FLEET GROWTH

CAGR

CAGR

3.3%

3%

Billion in revenue

2,505

1,925

KEY FACTS

$7.9 • Relatively mature market for$5.7 business aviation • Brazil and Mexico account for 60% fleet 2014 of the regional 2024

2014

2024


CAGR

•A verage economic growth CAGR of 3.3% per year

LIGHT 3%

3% • Fleet compound annual growth rate of 3%

• Light and Medium category aircraft account for 75% of deliveries

2014

2024


2015-2024 OUTLOOK

2,505 • Forecasted to receive 850 deliveries 1,925 valued at $24 billion

$7.9

$5.7

MEDIUM

LARGE

2,505

1,925

$11B

350

$9B 290 37%

41%

2024

34%

For the purposes of this forecast, Latin America includes all countries between the Rio Grande and Cape Horn.

41%

210 25%

$4B 2014

350

46%

17%

2014

LIGHT

$4B 17%

2024


21

2.4%

FORECAST BY REGION CIS

$2.8

$2.2 2014


510 Units

CAGR

2.4%

ECONOMIC GROWTH

$16

FLEET GROWTH

CAGR

CAGR

2.4%

6%

Billion in revenue

1,035

555

KEY FACTS

$2.8 • Business aviation in CIS began $2.2 in the early 1990s

2014

Units

LIGHT 6%


MEDIUM

1,035

555

$9B

56%

LARGE

$1B

57%

$6B

90

130 25%

18%

$1B

6%

2014

LIGHT

290 38%

• Medium and Large category aircraft account for over 80% of deliveries

For the purposes of this forecast, the Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.

2024


CAGR

• Average economic growth CAGR of 2.4% per year

2024

2014

2024


2015-2024 OUTLOOK

1,035 • Forecasted to receive 510 deliveries 555 valued at $16 billion

$2.8

$2.2

• Fleet has grown by nearly 7% per year early 1990s 2014 since the 2024

2014

2024

2024


90 18%

6%

22

4%

FORECAST BY REGION MIDDLE EAST

$4.9

$3.3 2014


400 Units

CAGR

4%

ECONOMIC GROWTH

$15

FLEET GROWTH

CAGR

CAGR

4%

7%

Billion in revenue

780

410

KEY FACTS

$4.9market • Remains a promising for$3.3 business aviation

$4.9

$3.3 2014

• Long distances between cities and difficult justify 2014 ground transportation 2024 the need for business aviation CAGR • Average economic growth of 4.0% per7year %

LIGHT 7%

410 • Forecasted to receive 400 deliveries valued at $15 billion

For the purposes of this forecast, the Middle East region also includes Turkey.


MEDIUM

LARGE

$5B

180

60%

45%

33%

$1B

60

160 40%

$1B

15%

7%

2014

LIGHT

$9B

780

410

• Medium and Large category aircraft remain the aircraft of choice 2024

2024


CAGR

• Fleet compound annual growth rate of 7% 780

2014

2024

2015-2024 OUTLOOK

2014

2024

2024


60 15%

7%

23

2.5%

FORECAST BY REGION ASIA PACIFIC

$13.8

$10.8 2014


355 Units

CAGR

2.5%

$14

FLEET GROWTH

CAGR

CAGR

2.5%

6%

Billion in revenue

$13.8 • Geographic position necessitates $10.8 the need for long range aircraft

2015-2024 OUTLOOK

2014


LIGHT 6%

% • Forecasted 6to receive 355 deliveries valued at $14 billion

MEDIUM

For the purposes of this forecast, Asia Pacific excludes Greater China and South Asia.

LIGHT

205 58%

$1B

$2B

22%

14%

7%

2014

79%

720

405

LARGE

$11B

80 2024

2024

Units

CAGR

• Fleet compound annual CAGR growth rate of 6%

for close to 60% of deliveries

2014

2024


2024

720account • Large category aircraft 405

$13.8

$10.8


2014

720

405

KEY FACTS

2014

ECONOMIC GROWTH

2024

80

70 20%

2024


$1B

22%

7%

24

7%

FORECAST BY REGION SOUTH ASIA

$5.1

$2.6 2014


310 Units

CAGR

7%

ECONOMIC GROWTH

$12

FLEET GROWTH

CAGR

CAGR

7%

12%

Billion in revenue

455

150

KEY FACTS

$5.1 its regional • Continues to develop $2.6aviation market business

$5.1

$2.6 2014

• Infrastructure and regulatory environment continue 2014 2024 to slowly improve CAGR • Average economic growth of 7% per year 12%

LIGHT 12%

150 • Forecasted to receive 310 deliveries valued at $12 billion

For the purposes of this forecast, Asia Pacific includes Afghanistan, Pakistan, Bhutan, India, Bangladesh, Sri Lanka, Maldives, and Nepal.


MEDIUM

150

LARGE

LIGHT

$9B 75%

455

160 52%

70

• Large category aircraft account for over 50% of deliveries 2024

2024


CAGR

• Fleet compound annual growth rate of 12% 455

2014

2024

2015-2024 OUTLOOK

2014

2024

$1B

$2B

23%

25%

17%

8%

2014

70

80

2024


$1B

23%

8%

25

4.8%

FORECAST BY REGION AFRICA

$3.5

$2.2 2014


275 Units

CAGR

4.8%

ECONOMIC GROWTH

$7

2024

FLEET GROWTH

CAGR

CAGR

4.8%

5%

Billion in revenue

595

380

KEY FACTS

$3.5 • Important market for business aircraft $2.2 deliveries • Fleet size has more than doubled in the past 10 years 2014 2024

2014

2014

2024

2024


2015-2024 OUTLOOK


CAGR

• Average economic growth CAGR of 4.8% per year

LIGHT 5%


595 • Forecasted to receive 275 deliveries 380 valued at $7 billion

$3.5

$2.2

MEDIUM

$3B 110 43%

100

40%

36%

$3B

2024

$1B 2014

100

43%

65 24%

14%

2014

LIGHT

595

380

• Light and Medium category aircraft account for over 75% of deliveries

LARGE

36%

$1B 14%

2024


26

CONCLUSION In 2014, business aviation continued on its path towards recovery. Though industry orders lagged, deliveries increased by 6% compared to the previous year. Over the next 10 years, we expect Large category aircraft will represent half of overall revenues at $137 billion while Medium and Light category aircraft will represent $91 billion and $39 billion respectively. Emerging markets like China, Russia, and Latin America will once again be key drivers to future growth as current challenges in these markets subside. Our 2015 edition of the Business Aircraft Market Forecast predicts a promising future for business aviation in the years ahead. With the most extensive product portfolio of any manufacturer, Bombardier is well positioned to lead the industry forward.

RESOURCES Ascend Asian Sky Group B&CA – Business & Commercial Aviation Magazine GAMA – General Aviation Manufacturers Association IBAC – International Business Aviation Council IHS Global Insight World Economic Outlook, January 2015 JETNET NEXA Advisors This presentation can be found on BUSINESSAIRCRAFT.BOMBARDIER.COM 27