Advanced Manufacturing Featured Speaker JONATHAN HACK Bombardier Aerospace

BOMBARDIER
KEYNOTE
PRESENTATIO
N
ed
How Regional Collaboration .
v
er
can help create Global es
s
r
L
Competitive Advantage Ir i
l l
.
I
F N
ar i
d
i C
O
A Presentation By: ub
s i
Jonathan Hack D
N
s
s Ati
E
T
or
June 26 , 2018
th A.V
nc
RI
I
P er
di
bar
om
B
©
Regional Collaboration / Global Competitiveness
Agenda: What we will cover
OVERVIEW OF BOMBARDIER:
HISTORY / CURRENT ORGANIZATION STRUCTURE / INNOVATION CULTURE
CANADIAN MANUFACTURING: A PERSPECTIVE & BOMBARDIER’S PLACE
© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL
A STUDY OF GLOBAL LEADING ECONOMIC REGIONS & THEIR ACTIVITY
BOMBARDIER’S ACTIVITY & OUR ENGAGEMENT IN ONTARIO
2
BOMBARDIER – THE EVOLUTION
The World’s Largest

Manufacturer of

Trains and Planes

INNOVATION IS PART OF
OUR DNA
3
Corporate structure
Global aerospace and rail transportation leader with scale and diversified revenues

TRANSPORTATION BUSINESS AIRCRAFT COMMERCIAL AIRCRAFT AEROSTRUCTURES
REVENUES
$8.5B $5.0B $2.4B $1.6B
Revenues of $16.2B in 2017

Note: Revenues are for the fiscal year ended December 31, 2017.
4
A global company
Geographically balanced footprint and revenues
Employees1 Revenues2
[CATE
G ORY Other
NAME] 2%
7%
Mexico

[CATE
5%
G
ORY
[CATE [CATEG NAME]

ORY 6%
G ORY [CATE
NAME] G ORY
NAME] 14%
33% NAME]
35%
[CATE [CATE
G ORY G ORY
NAME] US NAME]
43% 10% 46%
69,500 employees $16.2B in revenues
1. As at December 31, 2017

5 2. For the fiscal year ended December 31, 2017
A worldwide presence
73 production and engineering sites in 28 countries

Berlin
Montréal
Transportatio
Headquarters of: n
 Bombardier Inc. Headquarters
 Business Aircraft
 Commercial Aircraft
 Aerostructures and
Engineering Services
Note: Number of production and engineering sites as at December 31, 2017.

6
Bombardier evolution timeline
Built on ingenuity
1942-73 1993-2003
 Company start-up  CRJ Series, Global Express,
 Development of Challenger 300
passenger and  Tilting train, AGC
personal  Adtranz acquisition
snowmobiles

 Sale of Recreational Products
business

1974-85 2003-2015
 Diversification  CRJ1000, CRJ & Q400 Next Gen
into mass transit  New aerospace manufacturing
market centres in Mexico and Morocco
 ZEFIRO, ECO4, PRIMOVE
 Sale of Flexjet activities
1986-93 2015-…
 Entry into  C Series, Global 7000/8000
aerospace  C Series partnerships with
through Canadair Québec Government and Airbus
acquisition  CDPQ investment in
Transportation
 AVENTRA
7
TRANSPORTATION
BT: A Global Presence…

We have secured key strategic orders worldwide against key competitors
21 TALENT 3 trains for 441 double deck cars for
ÖBB (Austrian Railways) SNCF
$156M (2016)1 $1.22B (2017)2
40 double deck OMNEO INNOVIA APM for

Premium cars for Chicago O’Hare
Normandy International

$620M (2016) Airport
$180Mcars
180 AVENTRA (2015)
and
52 Francilien trains 35 years of maintenance
for SNCF for Transport for London,

$370M (2016) $558M
(2015)
20-year maintenance 62 TRAXX Locomotives
contract for LNVG for Israel
$393M (2016) Railways
$262M (2015)
125 BiLevel cars for
Metrolinx 15 CRH380D for
$328M (2016) China Railways
$381M (2015)3
FLEXITY for Edmonton
incl. SIG & 30-year O&M 156 FLEXITY for Vienna
$280M (2016) Transport Authority
$480M (2015)
665 AVENTRA Cars for 445 double deck cars M7
ABELLIO East Anglia for SNCB4
$1.2B (2016) $1.4B (2015)
1. 1st call-off order under a framework contract for up to 300 TALENT 3 valued at a list price of approximately $1.9B
2. In consortium with Alstom – BT’s share valued at $395 M
8 3. Bombardier Sifang Transportation, a Chinese entity in which Bombardier holds a 50 % interest, has been awarded a contract
with China Railway Corp. (CRC) to supply 15 CRH380D very high-speed trains valued at $381M
4. In consortium with Alstom – BT’s share valued at $853M
BOMBARDIER’S AEROSPACE ACTIVITY – GROWTH
THROUGH ACQUISITION……A PROUD INNOVATION LEGACY

The Short brothers (Eustace, Oswald and Horace)
established the first British airplane manufacturing
company in 1908. In 1909, they manufactured, on
license from Wilbur Wright six Wright planes in Britain.
Bill Lear started Learjet in
Wichita in 1962. He held more
than 150 patents.
Sir Geoffrey de Havilland

De Havilland in 1920 formed the de
Havilland Aircraft Company in Britain, where
he and his company designed and built a
large number of aircraft. The Canadian
subsidiary was created in 1928.
Bombardier Toronto
90 years 7,500 aircraft

1928 2018
 1.7 million square-foot  Q400 Final Product Development
Assembly  Centre
 facility
Approximately 380 andaircraft
Global Delivery  Customer Support
 family Final Centre
 acres
7,000 of land runway 
ft active Assembly
 Approximately 4,000 Lear 70/75 Wing
employees Assembly
10 Bombardier Toronto
BUSINESS AIRCRAFT
Business Aircrat: Preparing for the future

Our Global 7000 and Global 8000 business aircraft establish a new benchmark
Setting a new benchmark in global travel

 Global 7000 is designed for 7,300 nautical mile (NM) range with
10 passengers at Mach 0.851
 Global 8000 is designed for 7,900 NM – farther than any other

business jet at Mach 0.851

Bringing home-like feel and comfort to business travel
 Global 7000 jet features a spacious four-zone cabin
 Global 7000 and Global 8000 jets offer large, flexible, comfortable
and light-filled living environments
Incorporating the latest technology

 Fly-by-wire technology and breakthrough Bombardier Vision Flight
Deck
 GE’s new Passport 20 engine will set a new standard in performance,

efficiency, and reliability for business aviation
1. Under certain
operating conditions
11
COMMERCIAL AIRCRAFT
Commercial aircraft overview

Leading portfolio in the 60- to 150-seat market
Products
 C Series single-aisle jets

 CS100 / CS300

 CRJ Series regional jets
 CRJ700 / CRJ900 / CRJ1000

 Q Series turboprops
 Q400
 Customer services
Revenues1 Backlog2 Employees2

$2.4B 433 units 5,125
1. For the fiscal year ended December 31, 2017

12 2. As of December 31, 2017
A GLOBAL COMPANY WITH A LOCAL PRESENCE
BOMBARDIER SITES IN ONTARIO
5 sites in Ontario
KINGSTON
 Transportation systems
manufacturing and engineering

facility
THUNDER BAY

 Rolling stock manufacturing and
engineering site
MISSISSAUGA
 Americas service centre
ETOBICOKE
 Operations and maintenance
centre
TORONTO
 Manufacturing and
engineering
site
Aerospace Corporate Office

13
Transportation
Note: Certain cities include more than one site

BOMBARDIER IN ONTARIO
WE DRIVE THE GROWTH OF ONTARIO’S GDP
Indirect and induced impacts
Direct impacts

Including Aerospace
indirect and With revenues of $1.8 billion in

Ontario, Bombardier’s Aerospace
induced business segments directly
contributed $1 billion to Ontario’s GDP
impacts, we in 2016.
With revenues of almost
contributed $2.6 billion in Ontario in 2016,
$2.6 billion to Bombardier directly contributed
$1.8 billion to Ontario’s GDP.
Ontario’s GDP. Transportation
With revenues of $867 million in
Ontario, Bombardier Transportation
directly contributed $741 million to
Ontario’s GDP in 2016.
For every dollar of sales, we generated $1.48 of Ontario’s total GDP(1) in 2016
1. Total GDP includes direct, indirect and induced impacts

14
BOMBARDIER EMPLOYMENT AND R&D IN
CANADA
Bombardier generates 53,500 jobs and invests annually $2B in R&D
Direct aerospace manufacturing jobs Canada’s Top R&D Spenders
and indirect and induced employment [$B CAD, 2017]
107,00
0

#1 Bombardier $2.0

#2 BlackBerry $0.79
#3 Magna International $0.67
#4 Valeant $0.55
Pharmaceuticals
International
#5 Canadian Natural $0.54
Resources Limited
2
53 ,
15
500
1. Represents direct, indirect and induced jobs reported by AIAC in 2014
2. Based on 20,097 direct employees at Bombardier aerospace segments in Canada on December 31, 2014 and on economic multiplier of 1.33 as used in
the AIAC report to represent indirect and induced jobs
Sources: The State of the Canadian Aerospace Industry, Report 2014 (AIAC); Bombardier data; Research Infosource Inc. 2017

16
Global Forces Shaping Manufacturing
 A general continued trend towards trade liberalization and stronger

global supply chains.
 This remains a trend over a number of years, despite recent activities
by some towards protectionism

 Recent levels of financial / price volatility.
 Requires enhanced risk monitoring and management of costs, and
flexible mitigation techniques.
 Slowing of demand in developed countries, and shift towards emerging

markets
 Companies relying on exports to developed countries could typically
experience slower growth.
Bombardier is accelerating our activity in developing countries. Our current
footprint is over 85% focused on developed countries in North America / Europe
and Asia
17 Source: Canadian Manufacturing in a Global Context – Andrew Dooner

Canada’s Manufacturing Sector in Comparison
 A review of data suggests that Canada’s manufacturing sector has grown

more slowly than some of its OECD peers.
 Developing countries by contrast have seen their manufacturing
sectors grow more significantly.

 Canada’s position in manufacturing has declined from 7th globally in

2000 to 13th in 2010. (share of global manufacturing GDP)
Sources: United Nations (2013) data (regarding Canada’s trade ranking). Graph: Ivey: Canadian
18
Manufacturing in a Global Context
Canada’s Manufacturing Sub-Sectors & their
characteristics
Canadian Manufacturing Sub-Sectors by Size
Sub-Sector Characteristics
Global • High R&D intensity

Innovation • Compete on quality /
(Auto / Transport / innovation

Pharma) • Requires access to skilled
labour / R&D
Regional • Complex logistics L

Processing • High automation A
I
(Food &Bev / • Low R&D intensity N
T
Printing / plastics) • Local adaption
• Low trade intensity due to D
E
I
proximity needs N
F
A
C
Energy / • High energy / resource E
T
O
resource intensity A
intensive • High capital intensity V
N
RI
D
commodities • Requires availability of low P
(Wood / Pulp & cost energy & inputs
paper / metals /
refined petroleum
prod.)
Global Innovation for local markets Regional Processing
Energy / resrouce intensive commodities Global Technologies / Innovators
Labour Intensive tradeable goods
19 Source: Adapted by McKinsey and Company analysis on key clusters

A Closer Look: Global Innovation for Local Markets
Key Factors for Success

20 Source: McKinsey analysis – Global Institute Report – Manufacturing the Future
Canadian Manufacturers in the Global Arena..
 Canada’s share of global manufacturing GDP has slipped in recent years.
 It is difficult to make broad statements that apply to all manufacturing

companies – the sector is not homogenous.

 There are different success factors according to the nature of the

sector in which a business may compete.
 The largest segment (sub sector) of the Canadian manufacturing sector is

in “Global Innovation for Local Markets” (35%)
 Key Subsectors: Auto and Transport / Pharmaceutical / Machinery &
Appliances
 High R&D Intensity
 Well developed supply chains
 Compete on quality / innovation
Bombardier is representative of a company in this sub-sector. We highly value regions that
can deliver high value R&D, skilled people, a capable supply base, and well developed quality
policies
21

22
Innovation in Aerospace – Cluster Development
In order to attract / retain local aerospace industry, regions are

increasingly supporting cluster development activity

23
A Closer Look at Clusters
Location / Activities Primary Focus Areas

Name
Singapore • A Star research consortia • Aircraft maintenance
• Seletar Aerospace Park engineering

• Involves all major aerospace OEM’s, • SATCOM
system suppliers, engine suppliers etc. • Digital infrastructure, big data
(Boeing / Airbus / Bombardier / analytics

Embraer / GE / Rolls Royce / • Systems Engineering
Honeywell / United Technologies etc.)
Mexico • Aerospace park • Low cost manufacturing

• Collaborative research / development • Assembly operations
networks
• Involves: Airbus / Bombardier/ GE /
SAFRAN, Meggitt and others
United States - • Collaborative research / development • Next generation

networks environmentally friendly
Atlanta • Involves: Boeing / Cessna / Lockheed aircraft,
Martin, Gulfstream and others • autonomous aircraft,
• Maintenance
engineering
24
A Closer Look – the Montreal cluster
• The Montreal aerospace cluster is the largest in Canada and

is organized by AeroMontreal.
• AeroMontreal activity:
• Conferences: brings world leading experts to Montreal to talk

about the state of the industry.
• Workforce Planning: brings a common

message to government on the needs of the sector
• Capability Building: initiatives such as the MACH
program help to build the manufacturing / supply chain
capabilities of SME’s.
• CRIAQ Activity:
• Build capability through collaborative research projects –
2 companies / 2 post-secondary academic institutes.
• MAI Activity:
• Training of next generation engineering and technical
leadership through industry internships.
25


26
+ An association of world-leading aerospace companies and
DOWNSVIEW post-secondary education institutions from the Greater

AEROSPACE Toronto Area (GTA)
INNOVATION &
+ Members have agreed upon a joint mandate of developing

RESEARCH (DAIR) an Aerospace Hub at Downsview Park in Toronto, Ontario
CONSORTIUM
+ At the heart of the Hub, an Aerospace Research and
Innovation Centre will bridge industry, academia and
government partnerships
+ It will provide a collaborative space designed for aerospace

training and education, sector advisory services and R&D,
enabling Canada to maintain it’s leadership role in the global
market
CONSORTIUM
DAIR
MEMBERS

PHASE 1: CENTENNIAL
COLLEGE
The Centennial College Downsview Campus is ed

.
currently under construction and will open in Fall v
er
2018 es
r
s
L
The $72 million, 130,000 sq feet training and Ir i
research facility will enable the College’s Centre l l
.
for Aerospace and Aviation to grow from 300 to I
F N
900 students ar i
d
i C
O
ub
s i
N
D
s
s Ati
E
T
or
A.V
nc
RI
I
P er
Construction Live Feed: di
centennialcollege.ca/downsview-park-aerospace- bar
campus om
B
©
PHASE 2: INNOVATION
CENTRE
ed
.
v
The DAIR Innovation Centre will bring together er
industry and academic partners in a collaborative es
r
s
space designed for aerospace training and L
education, sector advisory services and R&D, Ir i
l l
enabling Canada to maintain its leadership role in .
the global market. F
ar
IN
i
d
The Innovation Centre aims to provide services i C
which include: O
ub
s i
+ Advisors for industry (technology, innovation, N
D
business, financing) s
s A
+ Technology space ti
E
+ Education and training - special courses for or T
students as well as industry-specific training A.V
+ Entrepreneurship support - start-up space nc
RI
I
+ Event space (conferences and workshops) P er
+ Rental space (offices, meeting space, labs, di
bar
classrooms) om
B
©
Downsview
Proposed Innovation Centre at

© Bombardier Inc. or its subsidiaries. All rights
PROPOSED INNOVATION CENTRE AT DOWNSIVEW
Bombardier Commitments – Collaborative Research / Funding / Training
ed
.
v
er
es
r
s
L
Ir i
l l
.
I
F N
ar i
d
i C
O
ub
s i
N
D
s
s Ati
E
T
or
A.V
nc
RI
I
P er
di
bar
om
B
©
Global reach and goals
BENEFITS OF

Relationships with industry leaders
INNOVATION
HUBS

Access to a local talent pool
Diverse partners
Proximity to critical assets
Diverse revenue streams

Why commit regionally to create competitive advantage
globally?
• Engaging in a cluster provides a vehicle for joint collaboration

on important R&D initiatives using shared resources.
• Provides post-secondary institutions the opportunity to dedicate resources

towards areas of specialization.
• Companies can work together on joint projects

• When resources are shared – they can be optimized to include the latest
available technology at a lower cost impact to participants.
• A cluster provides synergies in terms of working on joint policy

initiatives in terms of HQP training and other sector issues
with government and other external stakeholders.
• Clusters attract new investment from companies looking to invest

in the region.
34
boats”
“A rising tide lifts all

© Bombardier Inc. or its subsidiaries. All rights

Advanced Manufacturing Featured Speaker JONATHAN HACK Bombardier Aerospace

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Advanced Manufacturing Featured Speaker JONATHAN HACK Bombardier Aerospace

Uploaded by

Copyright:

Available Formats

BOMBARDIER

CANADIAN MANUFACTURING: A PERSPECTIVE & BOMBARDIER’S PLACE

© Bombardier Inc. or its subsidiaries. All rights reserved.

BOMBARDIER’S ACTIVITY & OUR ENGAGEMENT IN ONTARIO

The World’s Largest

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

© Bombardier Inc. or its subsidiaries. All rights reserved.

$8.5B $5.0B $2.4B $1.6B

Revenues of $16.2B in 2017

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

69,500 employees $16.2B in revenues

1. As at December 31, 2017

© Bombardier Inc. or its subsidiaries. All rights reserved.

Note: Number of production and engineering sites as at December 31, 2017.

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

BT: A Global Presence…

40 double deck OMNEO INNOVIA APM for

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

© Bombardier Inc. or its subsidiaries. All rights reserved.

Sir Geoffrey de Havilland

90 years 7,500 aircraft

© Bombardier Inc. or its subsidiaries. All rights reserved.

Business Aircrat: Preparing for the future

Setting a new benchmark in global travel

 Global 8000 is designed for 7,900 NM – farther than any other

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

Incorporating the latest technology

 GE’s new Passport 20 engine will set a new standard in performance,

Commercial aircraft overview

 C Series single-aisle jets

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

Revenues1 Backlog2 Employees2

1. For the fiscal year ended December 31, 2017

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

Aerospace Corporate Office

Note: Certain cities include more than one site

Indirect and induced impacts

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

1. Total GDP includes direct, indirect and induced impacts

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

CANADIAN MANUFACTURING: A PERSPECTIVE & BOMBARDIER’S PLACE

© Bombardier Inc. or its subsidiaries. All rights reserved.

BOMBARDIER’S ACTIVITY & OUR ENGAGEMENT IN ONTARIO

 A general continued trend towards trade liberalization and stronger

© Bombardier Inc. or its subsidiaries. All rights reserved.

 Slowing of demand in developed countries, and shift towards emerging

17 Source: Canadian Manufacturing in a Global Context – Andrew Dooner

 A review of data suggests that Canada’s manufacturing sector has grown

© Bombardier Inc. or its subsidiaries. All rights reserved.

PRIVATE AND CONFIDENTIAL

Global • High R&D intensity

© Bombardier Inc. or its subsidiaries. All rights reserved.

Regional • Complex logistics L

19 Source: Adapted by McKinsey and Company analysis on key clusters