Bombardier Reports Second Quarter 2017 Results

Bombardier Inc. / Bombardier Reports Second Quarter 2017 Results . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.

- Reaffirms full-year guidance; expects EBIT before special items(1) to be in the top half of range, between $580M and $630M

- Continued margin(2) expansion at Transportation and Business Aircraft

- Very strong orders in Transportation, book-to-bill(3) for the quarter at 1.4

- Transformation gaining momentum

MONTREAL, QUEBEC--(Marketwired - Jul 28, 2017) - Bombardier (TSX: BBD.A)(TSX: BBD.B)(OTCQX: BDRBF) today reported its second quarter 2017 results and highlighted the progress it is making transforming the company and building earnings power.

"We continue to make solid progress executing our five-year turnaround plan," said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. "We are improving our operating margins, transforming our operations and executing on our growth programs, which will allow us to deliver long-term sustainable value to our customers and shareholders. With our strong performance over the first half of the year, we are well positioned to achieve our full-year guidance and expect EBIT before special items at high end of our range, between $580 million and $630 million."

For the quarter, Bombardier reported revenues of $4.1 billion. EBIT before special items grew to $164 million, up 55% over the same period last year. EBIT margins before special items(1) were 8.2% for Transportation, a robust 8.9% at Business Aircraft and 7.7% at Aerostructures. Commercial Aircraft recorded an EBIT loss in line with the C Series ramp-up plan. Free cash flow usage(1) was also in line with plan at $570 million for the quarter.

Highlighting the Company's performance in the second quarter were strong orders at Transportation, which reported a book-to-bill(3) of 1.4. Transportation's operational transformation and site specialization strategy also continues to gain traction, with key milestones announced in the quarter for its operations in Germany, Switzerland and Belgium. In Business Aircraft, Bombardier's all new, class-defining, ultra-long range business jet, the Global 7000, exceeded 500 flight-test hours, and remains on schedule to enter service in the second half of 2018.

Bombardier also announced that Mrs. Sheila Fraser expressed her intention to resign from the Company's Board of Directors for personal reasons. The Board accepted Mrs. Fraser's resignation and thanks her for her five years of dedicated service and the insight and wisdom she brought to Bombardier during her tenure.

                                                                           
SELECTED RESULTS                                                            
RESULTS OF THE QUARTER                                                     
============================================================================
Three-month periods ended June                                              
30                                       2017            2016       Variance
----------------------------------------------------------------------------
Revenues                          $     4,092     $     4,309          (5)%
EBIT                              $      (123)    $      (251)         51% 
EBIT margin                              (3.0)%          (5.8)%   280 bps  
EBIT before special items         $       164     $       106          55% 
EBIT margin before special                                                 
 items                                    4.0%            2.5%    150 bps  
EBITDA before special items(1)    $       247     $       204          21% 
EBITDA margin before special                                               
 items(1)                                 6.0%            4.7%    130 bps  
Net loss                          $      (296)    $      (490)         40% 
Diluted EPS (in dollars)          $     (0.13)    $     (0.24)         46% 
Adjusted net income (loss)(1)     $        39     $       (83)        147% 
Adjusted EPS (in dollars)(1)      $      0.02     $     (0.06)        133% 
Net additions to PP&E and                                                   
 intangible assets                $       389     $       332          17% 
Free cash flow usage(1)           $      (570)    $      (490)        (16)%
============================================================================
                                                                            
                                                                           
RESULTS YEAR-TO-DATE                                                       
============================================================================
Six-month periods ended June 30          2017            2016       Variance
----------------------------------------------------------------------------
Revenues                          $     7,668     $     8,223          (7)%
EBIT                              $       (18)    $      (195)         91% 
EBIT margin                              (0.2)%          (2.4)%   220 bps  
EBIT before special items         $       292     $       236          24% 
EBIT margin before special                                                 
 items                                    3.8%            2.9%     90 bps  
EBITDA before special items       $       453     $       423           7% 
EBITDA margin before special                                               
 items                                    5.9%            5.1%     80 bps  
Net loss                          $      (327)    $      (628)         48% 
Diluted EPS (in dollars)          $     (0.15)    $     (0.32)         53% 
Adjusted net income (loss)        $        41     $      (117)        135% 
Adjusted EPS (in dollars)         $      0.02     $     (0.09)        122% 
Net additions to PP&E and                                                   
 intangible assets                $       665     $       626           6% 
Free cash flow usage              $    (1,163)    $    (1,240)          6% 
============================================================================
                                       June 30,    December 31,            
As at                                      2017            2016            
----------------------------------------------------------------------------
Available short-term capital                                               
 resources(4)                     $     3,290     $     4,477         (27)%
============================================================================
                                                                            

All amounts in this press release are in U.S. dollars unless otherwise indicated.
Amounts in tables are in millions except per share amounts, unless otherwise indicated.

Bombardier reported consolidated revenues of $4.1 billion in the quarter and $7.7 billion for the first six-month period, relative to $4.3 billion and $8.2 billion for the same periods last year, mainly as a result of previously-announced production rate adjustments in aerospace segments, consistent with market demand and continued growth in Transportation. EBIT before special items was $164 million and $292 million respectively for the quarter and year-to-date, up 55% and 24% from the same periods last year. This growth was driven by significant margin improvements at Transportation and Business Aircraft, which reached 8.2% and 8.9% respectively in the quarter. Free cash flow usage was $570 million in the quarter and $1.2 billion year-to-date, mainly as a result of the Global 7000 test program coupled with the C Series working capital and production ramp up. These results lead Bombardier to reiterate its full year guidance of revenue growth in the low-single digits, excluding currency impacts, EBIT before special items at the top half of the range, between $580 million to $630 million and free cash flow usage between $1.0 billion and $750 million.

SEGMENTED RESULTS AND HIGHLIGHTS

Business Aircraft

Results of the quarter                                                      
============================================================================
Three-month periods ended June                                             
 30                                      2017            2016       Variance
----------------------------------------------------------------------------
Revenues                          $     1,386     $     1,473          (6)%
Aircraft deliveries (in units)             36              42          (6) 
EBIT                              $        95     $       212         (55)%
EBIT margin                               6.9%           14.4%  (750) bps  
EBIT before special items         $       123     $        98          26% 
EBIT margin before special                                                  
 items                                    8.9%            6.7%    220 bps  
EBITDA before special items       $       148     $       146           1% 
EBITDA margin before special                                               
 items                                   10.7%            9.9%     80 bps  
Net additions to PP&E and                                                  
 intangible assets                $       373     $       162         130% 
============================================================================
                                       June 30,    December 31,            
As at                                      2017            2016            
----------------------------------------------------------------------------
Order backlog (in billions of                                              
 dollars)                         $      14.7     $      15.4          (5)%
============================================================================

--  We are increasing our EBIT margin before special items guidance to
    approximately 8.0% and reaffirming our revenue and delivery guidance for
    the year.
--  Delivered 36 aircraft in the second quarter, including a high level of
    Global aircraft deliveries, yielding a strong EBIT margin before special
    items of 8.9%. On a year-to-date basis, deliveries total 65 aircraft, on
    target to reach our full year guidance of 135 aircraft deliveries.
--  In May 2017, we unveiled the new Premier cabin for the Global 5000 and
    Global 6000 business jets. The new design draws inspiration from the
    high-end craftsmanship and the spaciousness, comfort and productivity of
    the Global 7000 and Global 8000 aircraft cabins.
--  Continued to progress on the Global 7000 and Global 8000 aircraft
    program with three flight test vehicles (FTVs) in flight testing,
    cumulating more than 500 flight hours. The flight validation program and
    aircraft systems integration are demonstrating a high degree of
    maturity. We also entered into a comprehensive settlement agreement with
    Triumph Aerostructures LLC that resolves all outstanding commercial
    disputes related to the manufacture of the aircraft program's wing.
    Multiple production aircraft started moving through the assembly line
    and the program is on track for entry-into-service (EIS) in the second
    half of 2018.
--  In line with our strategy to grow our aftermarket business, we
    inaugurated two service centres at the Biggin Hill Airport in London,
    England, and in Tianjin, China, further strengthening our customer
    support network.
--  In June 2017, we achieved the historic milestone of delivering the
    3,000th Learjet business jet manufactured, which was also the 100th
    Learjet 75 aircraft to be delivered.

                                                                           
Commercial Aircraft                                                        
Results of the quarter                                                     
============================================================================
Three-month periods ended June                                             
 30                                      2017            2016  Variance    
----------------------------------------------------------------------------
Revenues                          $       640     $       764         (16)%
Aircraft deliveries (in units)             20              27          (7) 
Net orders (in units)                      12             159        (147) 
Book-to-bill ratio(5)                     0.6             5.9        (5.3) 
EBIT                              $       (87)    $      (586)         85% 
EBIT margin                             (13.6)%         (76.7)%       nmf  
EBIT before special items         $       (86)    $      (103)         17% 
EBIT margin before special                                                 
 items                                  (13.4)%         (13.5)%    10 bps  
EBITDA before special items       $       (65)    $       (90)         28% 
EBITDA margin before special                                               
 items                                  (10.2)%         (11.8)%   160 bps  
Net additions to PP&E and                                                  
 intangible assets                $       (14)    $       137         nmf  
============================================================================
                                       June 30,    December 31,            
As at                                      2017            2016            
----------------------------------------------------------------------------
Order backlog (in units)                  424             436           (12)
============================================================================

--  We are reaffirming our revenue, delivery and EBIT before special items
    guidance for the full year.
--  Delivered 20 commercial aircraft during the quarter, including 6 C
    Series, 7 CRJ Series and 7 Q400 aircraft. With year-to-date deliveries
    of regional aircraft and turboprops totaling 28 aircraft, we reached the
    halfway mark of our full year delivery guidance for CRJ Series and Q400
    aircraft. Production is ramping-up to support approximately 30 C Series
    aircraft deliveries. C Series aircraft deliveries are expected to
    gradually intensify in the second half of the year.
--  Including deliveries during the month of July 2017, C Series aircraft
    fleet now totals 16 aircraft, with both the CS100 and CS300 aircraft
    continuing to perform well with Swiss International Air Lines (SWISS)
    and Air Baltic Corporation AS (airBaltic).
--  During the quarter, we received firm orders for 12 Q400 aircraft, valued
    at $397 million at list price, and letters of intent (LOI) for up to 52
    Q400 aircraft, valued at up to $1.8 billion at list price. This order
    activity includes an LOI from SpiceJet for up to 50 aircraft, and the
    exercise of options by Philippine Airlines for 7 additional aircraft.
--  With respect to the petition filed by The Boeing Company (Boeing) before
    the U.S. Department of Commerce and the U.S. International Trade
    Commission regarding the alleged threat caused by future exports of C
    Series family of aircraft to the U.S., we disagree with the assertions
    and are responding to the petition proceedings. We expect the U.S.
    Department of Commerce to issue its preliminary determinations on
    applicable duties, if any, during the fall of 2017 and to issue its
    final determinations during the first half of 2018.

                                                                            
Aerostructures and Engineering Services                                    
Results of the quarter                                                     
============================================================================
Three-month periods ended June                                             
 30                                      2017            2016       Variance
----------------------------------------------------------------------------
Revenues                          $       426     $       425           -% 
External order intake             $       151     $       105          44% 
External book-to-bill ratio(6)            1.7             1.0         0.7  
EBIT                              $        33     $        69         (52)%
EBIT margin                               7.7%           16.2%  (850) bps  
EBIT before special items         $        33     $        30          10% 
EBIT margin before special                                                 
 items                                    7.7%            7.1%     60 bps  
EBITDA before special items       $        42     $        42           -% 
EBITDA margin before special                                               
 items                                    9.9%            9.9%      0 bps  
Net additions to PP&E and                                                  
 intangible assets                $         3     $         4         (25)%
============================================================================
                                       June 30,    December 31,            
As at                                      2017            2016            
----------------------------------------------------------------------------
External order backlog            $        99     $        42         136% 
============================================================================

--  We are reaffirming our revenue guidance for the year and revising our
    EBIT margin before special items guidance to approximately 8.0%.
--  EBIT margin before special items was 7.7% for the quarter and 7.6% year-
    to-date, an improvement compared to the same periods last year, driven
    mainly by higher margins on intersegment contracts and aftermarket
    sales.
--  Effective July 1, 2017, Michael Ryan became President, Aerostructures
    and Engineering Services. Mr. Ryan, who previously served as Vice
    President and General Manager of Bombardier's Belfast Aerostructures
    facility, succeeds Jean Seguin who is retiring after a very successful
    36-year career with Bombardier. Mr. Ryan reports directly to Alain
    Bellemare, President and Chief Executive Officer, Bombardier Inc.
    
   

Transportation

Results of the quarter                                                      
============================================================================
Three-month periods ended June                                             
 30                                        2017            2016     Variance
----------------------------------------------------------------------------
Revenues                          $     1,975     $     1,964           1% 
Order intake (in billions of                                               
 dollars)                         $       2.7     $       2.1          29% 
Book-to-bill ratio(3)                     1.4             1.1         0.3  
EBIT                              $       (52)    $        87        (160)%
EBIT margin                              (2.6)%           4.4%  (700) bps  
EBIT before special items         $       161     $       124          30% 
EBIT margin before special                                                 
 items                                    8.2%            6.3%    190 bps  
EBITDA before special items       $       188     $       149          26% 
EBITDA margin before special                                               
 items                                    9.5%            7.6%    190 bps  
Net additions to PP&E and                                                  
 intangible assets                $        18     $        29         (38)%
============================================================================
                                       June 30,    December 31,            
As at                                      2017            2016            
----------------------------------------------------------------------------
Order backlog (in billions of                                               
 dollars)                         $      32.7     $      30.1           9% 
============================================================================

--  We are reaffirming our revenue guidance and increasing our EBIT margin
    before special items guidance to approximately 8.0% for the year.
--  Revenue growth is gaining momentum as execution of key projects
    progresses, increasing 3.6% in the second quarter compared to the same
    period last fiscal year excluding the currency impact, and 4.4% on a
    year-to-date basis.
--  EBIT margin before special items increased by 1.9 percentage points in
    the second quarter compared to the same period last fiscal year,
    reaching 8.2% in the second quarter, including the positive impacts of
    transformation initiatives. EBIT margin before special items for the
    six-month period reached 8.1%.
--  During the second quarter of 2017, we won several significant orders in
    Europe, mainly in the U.K. and France, resulting in a book-to-bill ratio
    of 1.4. The majority of our order intake in the second quarter of 2017
    is based on current product platforms, supporting the re-use of existing
    technologies.
--  Significant progress was made during the quarter towards our ongoing
    structural transformation, which will enable the multi-year site
    specialization strategy. Key milestones were reached with Supervisory
    Boards and unions in Germany, Switzerland and Belgium, which will lead
    to gradual manpower adjustments of up to 2,200 positions in Germany, 650
    in Switzerland and 160 in Belgium. In connection with those
    organizational changes, severance costs of $181 million and asset write-
    downs of $32 million were recorded as restructuring charges in the
    second quarter in special items.
    
   

About Bombardier
Bombardier is the world's leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.

Bombardier is headquartered in Montreal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability North America index. In the fiscal year ended December 31, 2016, we posted revenues of $16.3 billion. News and information are available at www.bombardier.com or follow us on Twitter @Bombardier.

Bombardier, CRJ Series, CS100, CS300, C Series, Global, Global 5000, Global 6000, Global 7000, Global 8000, Learjet, Learjet 75, Q400 are trademarks of Bombardier Inc. or its subsidiaries.

The Management's Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.

bps:basis points                                                            
nmf:information not meaningful                                             
(1) Non-GAAP financial measures. See Caution regarding non-GAAP measures at
    the end of this press release.                                         
(2) Margin refers to EBIT margin before special items. Non-GAAP financial  
    measure. See Caution regarding non-GAAP measures at the end of this    
    press release.                                                          
(3) Defined as new orders over revenues.                                   
(4) Defined as cash and cash equivalents plus the amount available under the
    revolving credit facilities.                                            
(5) Defined as net orders received over aircraft deliveries, in units.     
(6) Defined as new external orders over external revenues.                 

CAUTION REGARDING NON-GAAP MEASURES
This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, EBIT before special items and EBITDA before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS; therefore, others using these terms may define them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and each reporting segments' Analysis of results sections in the Corporation's MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.

                                                                           
Reconciliation of segment to consolidated results                          
============================================================================
                         Three-month periods ended   Six-month periods ended
                                           June 30                   June 30
----------------------------------------------------------------------------
                                2017         2016         2017         2016
----------------------------------------------------------------------------
Revenues                                                                   
  Business Aircraft       $    1,386   $    1,473   $    2,393   $    2,776
  Commercial Aircraft            640          764        1,180        1,380
  Aerostructures and                                                        
   Engineering Services          426          425          814          893
  Transportation               1,975        1,964        3,898        3,844
  Corporate and                                                             
   Elimination                  (335)        (317)        (617)        (670)
----------------------------------------------------------------------------
                          $    4,092   $    4,309   $    7,668   $    8,223
============================================================================
EBIT before special                                                        
 items                                                                     
  Business Aircraft       $      123   $       98   $      200   $      185
  Commercial Aircraft            (86)        (103)        (141)        (169)
  Aerostructures and                                                       
   Engineering Services           33           30           62           65
  Transportation                 161          124          314          239
  Corporate and                                                            
   Elimination                   (67)         (43)        (143)         (84)
----------------------------------------------------------------------------
                          $      164   $      106   $      292   $      236
----------------------------------------------------------------------------
Special Items                                                               
  Business Aircraft       $       28   $     (114)  $       31   $     (109)
  Commercial Aircraft              1          483            2          483
  Aerostructures and                                                       
   Engineering Services            -          (39)           -          (19)
  Transportation                 213           37          232          129
  Corporate and                                                             
   Elimination                    45          (10)          45          (53)
----------------------------------------------------------------------------
                          $      287   $      357   $      310   $      431
----------------------------------------------------------------------------
EBIT                                                                       
  Business Aircraft       $       95   $      212   $      169   $      294
  Commercial Aircraft            (87)        (586)        (143)        (652)
  Aerostructures and                                                       
   Engineering Services           33           69           62           84
  Transportation                 (52)          87           82          110
  Corporate and                                                            
   Elimination                  (112)         (33)        (188)         (31)
----------------------------------------------------------------------------
                          $     (123)  $     (251)  $      (18)  $     (195)
============================================================================
                                                                           
                                                                            
Reconciliation of EBITDA before special items and EBITDA to EBIT           
============================================================================
                        Three-month periods ended   Six-month periods ended
                                          June 30                   June 30
----------------------------------------------------------------------------
                                2017         2016         2017         2016
----------------------------------------------------------------------------
EBIT                      $     (123)  $     (251)  $      (18)  $     (195)
Amortization                      78           98          156          187
Impairment charges on                                                      
 PP&E and intangible                                                       
 assets(1)                        43            -           43            -
----------------------------------------------------------------------------
EBITDA                            (2)        (153)         181           (8)
Special items excluding                                                    
 impairment charges on                                                      
 PP&E and intangible                                                       
 assets(1)                       249          357          272          431
----------------------------------------------------------------------------
EBITDA before special                                                      
 items                    $      247   $      204   $      453   $      423
============================================================================
                                                                           
                                                                           
Reconciliation of adjusted net income (loss) to net loss and computation of
 adjusted EPS                                                               
============================================================================
                                           Three-month periods ended June 30
----------------------------------------------------------------------------
                                                  2017                  2016
----------------------------------------------------------------------------
                                                                        (per
                                           (per share)                share)
----------------------------------------------------------------------------
Net loss                           $     (296)           $     (490)       
  Adjustments to EBIT related to                                           
   special items(1)                       287   $ 0.13          357   $ 0.16
  Adjustments to net financing                                              
   expense related to:                                                     
     Net change in provisions                                              
      arising from changes in                                              
      interest rates and net loss                                          
      on certain financial                                                 
      instruments                          39     0.02           10     0.00
     Accretion on net retirement                                            
      benefit obligations                  19     0.01           17     0.01
     Interest related to tax                                               
      litigation(1)                         -        -           26     0.01
  Tax impact of special(1) and                                             
   other adjusting items                  (10)   (0.01)          (3)    0.00
----------------------------------------------------------------------------
Adjusted net income (loss)                 39                   (83)       
Net loss (income) attributable to                                          
 NCI                                        7                   (41)       
Preferred share dividends,                                                 
 including taxes                           (6)                   (6)       
----------------------------------------------------------------------------
Adjusted net income (loss)                                                 
 attributable to equity holders                                            
 of Bombardier Inc.                $       40            $     (130)       
============================================================================
Weighted-average diluted number                                            
 of common shares (in thousands)    2,239,122             2,222,874        
============================================================================
Adjusted EPS (in dollars)          $     0.02            $    (0.06)       
============================================================================
                                                                           
                                                                            
Reconciliation of adjusted net income (loss) to net loss and               
 computation of adjusted EPS                                               
============================================================================
                                             Six-month periods ended June 30
----------------------------------------------------------------------------
                                                   2017                 2016
----------------------------------------------------------------------------
                                            (per share)          (per share)
----------------------------------------------------------------------------
Net loss                           $     (327)           $     (628)       
  Adjustments to EBIT related to                                           
   special items(1)                       310   $  0.14         431   $ 0.19
  Adjustments to net financing                                             
   expense related to:                                                     
     Accretion on net retirement                                           
      benefit obligations                  38      0.02          34     0.02
     Net change in provisions                                              
      arising from changes in                                              
      interestrates and net                                                 
      (gain) loss on certain                                               
      financial instruments                31      0.01          25     0.01
     Interest related to tax                                               
      litigation(1)                         -         -          26     0.01
     Transaction costs related to                                          
      the conversion option                                                
      embedded in the CDPQ                                                  
      investment(1)                         -         -           8     0.00
  Tax impact of special(1) and                                             
   other adjusting items                  (11)     0.00         (13)    0.00
----------------------------------------------------------------------------
Adjusted net income (loss)                 41                  (117)       
Net loss (income) attributable to                                          
 NCI                                       10                   (64)       
Preferred share dividends,                                                 
 including taxes                          (12)                  (11)       
----------------------------------------------------------------------------
Adjusted net income (loss)                                                 
 attributable to equity holders                                            
 of Bombardier Inc.                $       39            $     (192)       
============================================================================
Weighted-average diluted number                                            
 of common shares (in thousands)    2,244,283             2,222,942        
============================================================================
Adjusted EPS (in dollars)          $     0.02            $    (0.09)       
============================================================================

(1) Refer to the Consolidated results of operations section in the Corporation's MD&A for details regarding special items.

                                                                           
Reconciliation of adjusted EPS to diluted EPS (in dollars)                 
============================================================================
                                           Three-month periods ended June 30
----------------------------------------------------------------------------
                                                            2017        2016
----------------------------------------------------------------------------
Diluted EPS                                           $   (0.13)  $   (0.24)
Impact of special(1) and other adjusting items             0.15        0.18
----------------------------------------------------------------------------
Adjusted EPS                                          $    0.02   $   (0.06)
============================================================================
                                                                           
                                                                           
Reconciliation of adjusted EPS to diluted EPS (in                          
 dollars)                                                                  
============================================================================
                                             Six-month periods ended June 30
----------------------------------------------------------------------------
                                                            2017        2016
----------------------------------------------------------------------------
Diluted EPS                                           $   (0.15)  $   (0.32)
Impact of special(1) and other adjusting items             0.17        0.23
----------------------------------------------------------------------------
Adjusted EPS                                          $    0.02   $   (0.09)
============================================================================
                                                                           
                                                                            
Reconciliation of free cash flow usage to cash flows                       
 from operating activities                                                 
============================================================================
                                 Three-month periods       Six-month periods
                                       ended June 30           ended June 30
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                                    2017        2016        2017        2016
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Cash flows from operating                                                  
 activities                   $    (181)  $    (158)  $    (498)  $    (614)
Net additions to PP&E and                                                  
 intangible assets                 (389)       (332)       (665)       (626)
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Free cash flow usage          $    (570)  $    (490)  $  (1,163)  $  (1,240)
============================================================================
(1) Refer to the Consolidated results of operations section in the         
    Corporation's MD&A for details regarding special items.                
                                                                           

FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation's objectives, guidance, targets, goals, priorities, 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; competitive position; the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation's business and operations; available liquidities and ongoing review of strategic and financial alternatives; the impact and expected benefits of the investment by the Government of Quebec in the C Series Aircraft Limited Partnership and of the private placement of a minority stake in Transportation by the CDPQ on our operations, infrastructure, opportunities, financial condition, access to capital and overall strategy; and the impact of such investments on our balance sheet and liquidity position.

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, variations of them or similar terminology. By their nature, forward-looking statements require management 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 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.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy; increased competition; political instability and force majeure), operational risks (such as risks related to developing new products and services; development of new business; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution; pressures on cash flows based on project-cycle fluctuations and seasonality; our ability to successfully implement and execute our strategy and transformation plan; 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; reliance on information systems; reliance on and protection of intellectual property rights; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and Inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the Management's Discussion and Analysis (MD&A) of the Corporation's financial report for the fiscal year ended December 31, 2016. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the Guidance and forward-looking statements sections in the MD&A of the Corporation's financial report for the fiscal year ended December 31, 2016.

Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect management's expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes 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 press release are expressly qualified by this cautionary statement.

The Global 7000 and Global 8000 aircraft program is currently in development, and as such is subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data are approximate, may change without notice and are subject to certain operating rules, assumptions and other conditions. This document does not constitute an offer, commitment, representation, guarantee or warranty of any kind.

Contact Information

Contacts:
Simon Letendre
Senior Advisor, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481

Patrick Ghoche
Vice President, Investor Relations
Bombardier Inc.
+514 861 5727

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Bombardier Inc.
800 Rene-Levesque Blvd. West Montreal, QC Canada


Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;