Bombardier Inc Investor and Analyst Day

BBD.B.TO - Bombardier Inc
Bombardier Inc Investor and Analyst Day
Dec 14, 2017 / 08:00PM GMT 

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Corporate Participants
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   *  Alain M. Bellemare
      Bombardier Inc. - CEO, President and Director
   *  David M. Coleal
      Bombardier Inc. - President of Business Aircraft
   *  Dimitrios Vounassis
      Bombardier Inc. - Chief Transformation and Procurement Officer
   *  Frederick S. Cromer
      Bombardier Inc. - President of Commercial Aircraft
   *  John Di Bert
      Bombardier Inc. - CFO and SVP
   *  Laurent René Octave Troger
      Bombardier Inc. - President of Transportation
   *  Michael J. Ryan
      Bombardier Inc. - President of Aerostructures & Engineering Services
   *  Patrick Ghoche
      Bombardier Inc. - VP of IR

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Conference Call Participants
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   *  Benoit Poirier
      Desjardins Securities Inc., Research Division - VP and Industrials, Transportation, Aerospace, Industrial Products & Special Situation Analyst
   *  Christopher Allan Murray
      AltaCorp Capital Inc., Research Division - MD of Institutional Equity Research & Senior Analyst
   *  Justine Beth Fisher
      Goldman Sachs Group Inc., Research Division - Fixed Income Analyst
   *  Konark Gupta
      Macquarie Research - Analyst
   *  Kristine Tan Liwag
      BofA Merrill Lynch, Research Division - VP
   *  Robert Michael Spingarn
      Crédit Suisse AG, Research Division - Aerospace and Defense Analyst
   *  Robin Wijaya
   *  Ronald Jay Epstein
      BofA Merrill Lynch, Research Division - Industry Analyst
   *  Seth Michael Seifman
      JP Morgan Chase & Co, Research Division - Senior Equity Research Analyst
   *  Stephen Trent
      Citigroup Inc, Research Division - Director
   *  Walter Noel Spracklin
      RBC Capital Markets, LLC, Research Division - Analyst

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Presentation
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 Patrick Ghoche,  Bombardier Inc. - VP of IR   [1]
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 All right. Well, I've already setting up. Well, welcome everyone to our 2017 Bombardier Investor Day. It's great to have you here, both the people in the room and I know many people following online on the webcast.

 So pleasure to be here again to update you on our 5-year plan and the progress on our 5-year plan. We'll have in terms of logistics, probably the first part let's say, the first hour, a brief presentation by our CEO Alain Bellemare, followed by John Di Bert, he'll walk you through some of the financials I'm sure you all want to hear about. Following that, we'll have all the business unit presidents, talk about their business, the progress, the accomplishments and where they're going. And finally, Jim is going to come and talk to you about strong progress on transformation and a bit of what's to come.

 So to be efficient, we'll keep the Q&A for the end of the presentation, and we'll take questions both from the room and online. So online, you can follow the instructions at that point.

 So before we begin, I want to draw your attention to the usual disclaimers on Page 2 and 3 of the presentation. I wish to remind you that during the course of this presentation, we may make projections or other forward-looking statements regarding future events or future financial performance of the corporation. Several assumptions were made in preparing these statements and we wish to emphasize that there are risks that actual events and results may differ materially from these statements. And I'm making this cautionary statement on behalf of each speaker whose remarks today will contain forward-looking statements.

 So last thing for those in the room in case of emergency, you will hear an alarm. Please remain seated and wait for instructions. Exits are located behind the room.

 So on this, I guess everyone is setting up. We'll start with a brief intro video and then I will introduce our President and CEO.

 (presentation)

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 Patrick Ghoche,  Bombardier Inc. - VP of IR   [2]
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 All right, thank you. So on this, I'd like to introduce our President and CEO, Mr. Alain Bellemare.

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 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [3]
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 Good afternoon, everybody and always great to be back here in New York, especially at Christmas time. It's a good time to go shopping and spend too much money, but was always great to be here. So you will see that today, we will share with you the significant and very solid progress that we're making at Bombardier. And the key message is super simple: we are going to bring our -- on our 2017 commitments and we are on track to achieve our 2020 goals. A business of $20 billion, with strong ROS and solid free cash flow generation in the range of $750 million to $1 billion a year.

 So we have the right team in place, the right plan and the right strategy to achieve that. 2018 will be key in our turnaround journey. We will shift from a major investment cycle to a growth cycle. And as you will hear from the team today, John will cover that into more detail. We expect to breakeven cash flow in 2018. So John will be here in a few minutes, but before he does, what I'd like to do is share with you some of our major accomplishments in 2017 and also share with you our trading value for shareholders.

 In fact, I mean, there's tremendous value in the Bombardier portfolio. In our rail business, we are a global and strong leader, with a very solid and growing backlog of $33 billion. So we have scale, we have technology and we have knowledge to drive profitable, sustainable growth for years to come.

 We probably have the best business aircraft franchise in the world and with the Global 7000, it will be even stronger. So our focus on execution and aftermarket is driving performance under any market environment. At Commercial Aircraft, we have our proven CRJ and Q400 and obviously, the highlight in 2017 was or is our strategic alliance with Airbus. This strategic partnership will really unleash the full value of our investment in the C Series.

 And then, we have Aerostructure, which is a great business. We don't talk much about that, but we have great, deep knowledge, we have design capabilities, we have manufacturing capabilities and we will fully benefit from the growth of all these new programs. So we have Michael Ryan, who is the new President of Aerostructure with us today, first time in New York with us.

 So as you can see, we have great businesses and our turnaround plan is creating value for shareholders. In fact, our 5-year turnaround plan was launched in November 2015, and we're about halfway through our journey. And so far, great work by the team and we're starting to see some significant progress. Major risks have been retired, the path forward is clear, and we are starting to deliver solid financial performance. So I mean, this progress does reflect our very proactive and at the same time, very pragmatic approach in driving execution. So despite some unforeseen challenges and difficult markets, I am very proud of the work that the team has done so far and we have -- we know that we have more to do.

 In 2017, there was a significant number of achievement and we will end 2017 with like, a transformation plan that is in full motion, full traction and with great momentum in our new programs. And David will talk about the progress we're making on the Global 7000. Fred will share with you how we are regaining momentum in commercial aircraft and how this deal with Airbus will accelerate what we're doing on the C Series. And then, Laurent will explain to you what he is doing to transform the rail business, to expand margin, to grow the backlog and to resume revenue growth.

 So over the next 3 years, value creation will accelerate and by 2020, top line should increase by $4 billion, that is a 7% CAGR to $20 billion, so that is very strong top line growth. Earnings are expected to double over the same timeframe, driven by strong performance across all of our business units, and we are on track to generate solid free cash flow in the range of $750 million to $1 billion a year. So clearly, our turnaround plan is and will continue to create significant value for shareholders.

 So now, it's all about execution. We have all of the pieces in place to execute, the team knows exactly what we need to do. It's all about discipline, execution. We have -- we are now focused on 7 top priorities, ranging from closing the deal with Airbus, to ramping up the C Series, to bringing the Global 7000 to market, and to deliver on our key train projects. So this afternoon, the team will share with you in detail, every one of these priorities.

 So in conclusion, the transformation of Bombardier is well underway and with the significant investment cycle coming to an end, we have the right foundation in place to drive profitable growth for years to come. So I am confident that we have the right team in place, the right strategy, and the right plan to continue trading value for our customers and for our shareholders.

 I want to thank you for your time and now, I will ask John to come on stage.

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 John Di Bert,  Bombardier Inc. - CFO and SVP   [4]
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 Okay, mic's on, everything is good. Yes, so good afternoon everybody. Thank you, Alain. And exciting to be back here in New York again with I guess, now is the Third Annual Investor Day at the end of the year. So today, the goal I have is really one, is to help you reflect a little bit on the business we have, what we've been doing and kind of go through a little bit of some of the analytics behind what numbers we've already delivered through '17. There's a story there that's already starting to develop. Two, is I'd like to take you through guidance for '18 obviously, and explain how we're going to deliver turnaround performance in 2018. And then thirdly, I'd like to give a little more color and some confidence around our 2020 objectives, same objectives we've set out a couple of years back and how we continue to make progress towards them.

 So we'll start on this chart. So a couple of key messages here, one is that we expect to finish 2017 with strength. We will deliver over 50% earnings growth year-over-year for the full year versus 2016. Secondly, we are leading margin expansion transformation through our 2 largest business units so, BBA and BT. And you see the numbers there, a nice progression throughout the period of 3 years from '15 to '17 and that -- we'll talk more about '18 in a minute.

 And on the left side of the chart, I just want to draw your attention to just some basic analytics when you look at consolidated performance ex C Series. So we've removed BCA in terms of performance and the reason I did that is just simply to show what's actually happening underneath in the normal operations of the business. So you've got $724 million of earnings or EBIT in 2015 and that has grown to an excess of $1 billion already here in 2017. So that performance is real, it exists and it's happening throughout the business. And of course, at the same time, we're ramping up the C Series.

 More importantly, if you look at 2017 EBITDA on an ex C Series basis, we're already now over $1.3 billion for the business. So that's a meaningful number and starts to reflect the size and scale of Bombardier. Across every business unit, we have an 8% margin. So margin expansion is again, broad and across all the businesses.

 And I'd say that Alain made an allusion to it, but through adversity and also through some more difficult markets, we have proven and shown that we can perform in any market environment across each of the units.

 So turning over to 2018, so here is 2018 guidance and performance. You've seen it in the press release, but I'll give you a little bit more color today.

 Number one, we will deliver financial turnaround -- turnaround financial performance in 2018, and there's some sizable improvements across all of our metrics. One, revenue up by $1 billion, between $17 billion and $17.5 billion, so an acceleration of top line. I'll talk a bit more about where that comes from in a moment. Two, revenues will grow -- sorry, earnings will grow more than 30% year-over-year, and that will drive an EBITDA of $1.15 billion to $1.25 billion. And as committed in 2015 here in New York, we will deliver breakeven free cash flows for Bombardier consolidated. That is a $1 billion improvement over 2017 against our expectations this year. 2018 performance will keep us solidly on track for our 2020 objectives.

 This is happening across all parts of our business, every one of our business units gets better in 2018. Sales will grow across-the-board, mid-single-digits or better, and margins have more runway, '18 and beyond. At BT, top line growth of $500 million is added to margin expansion of about 50 basis points. That gives you $9 billion of revenue over 8.5% margins.

 Business Aircraft will maintain stable top lines and we'll start to introduce early units of the 7000 and still show margin improvements. So you see there, equal or better than $5 billion up to 5% top line growth. At the same time, equal or better than 8% margins.

 BCA grows on C Series production and delivery growth and that's offset by a slower regional production rate and deliveries. You see they are $2.7 billion up, high single digits. And for the C Series deliveries, approximately 35 from our commercial aircraft in Qs and CRJs. The learning curve benefits allow us to double the C Series performance and at the same time, reduce negative margins by about $50 million.

 And finally, we're starting to see the strength of our Aerostructures franchise and you have significant ramp up there of 2 major programs. And that comes into a cost structure now that's been significantly improved and has room for more margin expansion. So here we go, approximately $2 billion of revenue, something around or better than 8.5% margins on our goal towards 9% to 11% in the longer term.

 So here is a walk-through and I think it's worth spending a little bit of time on how we grow revenue through '18, but then onward through 2020. And again, through some of these charts, what you'll see is that structurally, the elements are already there for 2020 objectives, where we have our complete focus. So both Rail and Aerospace will contribute to the growth of $1 billion of revenue increase in '18, you can see it on the chart. Growth at BT is well on its way, second half of '17 already shows that. We have seen acceleration in the third quarter, that will continue into Q4 and next year, 2018 will be an intense year of deliveries, handing over trains and products to customers.

 Aero revenue will grow by doubling C Series production and deliveries to about 40 aircraft, Fred will talk a little bit more about it. And we'll see earning contributions from the Global 7000, and then David will give you a little bit of an update on the program there. So we see our first units coming in at the back end of the year.

 We'll also continue to grow our aftermarket activities as we had set out to do and particularly at BBA. And finally, Aero revenues will be offset by prudent management of production for both Q and CRJ in 2018.

 Now 2020 growth to $20 billion is driven and you can see it on the kind of chart between '18 and '20, it's driven by transportation continuing its progress toward a $10 billion franchise. We have significant backlogs, over $33 billion, and we are now into an intense delivery phase on many large projects and programs. As a result, that revenue growth continues and takes us towards $10 billion for the franchise.

 At BBA, obviously, the growth story there is all about the 7000. And as we start to get into mature production rates, 40-ish units or so, you'll see about $3 billion or more of revenue growth between now and 2020.

 We'll also deconsolidate the C Series as our expectation is and throughout this presentation, under the assumption that we close at the end of 2018. So with the expectation that by 2020, we'll have deconsolidated C Series and that will adjust revenues. And our overall forecast through 2020 assumes relatively stable markets, so we're not embedding here any significant assumptions for global expansion or growth. It is a forecast that generally sees stable performance across the portfolio on the Aero side in terms of legacy programs and units.

 So overall, we have a great product and portfolio and we are truly executing and 2018 will be a year where that execution continues.

 So here, let's talk a little bit more about earnings. And I would tell you that we've already started to see the beginnings of an earnings cycle acceleration in '17 and in '18, and that will continue into 2020 and beyond. There's 3 powerful forces that are driving what's happening to our earnings. Number one, you've got revenue growth. I've talked about it; two, margin expansion, you've seen it and it will continue through the next 2 years, and Jim will give you a little bit more color about that; three, we continue steady progress and now we have a strategic plan towards C Series breakeven and then eventual profitability. Those 3 forces will dictate progression in 2018, but also drive progression in earnings through 2020.

 In '18, revenue growth of about $0.5 billion ex C Series, converts at double-digit gross margins. And then you can see that on the chart. So you've got one element that is essentially converting the revenue growth to profitability. Then we have margin expansion, that will continue this year. We'll expect on the base of ex C Series revenues, roughly $15 billion, we'll expect something in the order of 50 basis points of margin expansion. You can do the math, that's another important contributor to earnings growth.

 And then finally, as we ramp up the C Series, we'll double production but losses will decrease from $400 million down to $350 million, that's also an element of earnings growth year-over-year. In total, $150 million to $250 million of EBIT or EBITDA growth.

 Between 2018 and 2020, the same forces will lead to consolidated EBIT margins of over 8% and more importantly, on EBITDA, the consolidated level that is over $2.25 billion. So as C Series achieves its breakeven point, as revenue growth on $4 billion of top line converts into profit, and as margin expands by an additional 100 to 200 basis points on a business of $20 billion of scale. And those are the 3 boxes or buckets that you see there, driving $2.25 billion of EBITDA or over $1.6 billion of EBIT for the business.

 So if you kind of peel back a little bit 2017, I want to start with a chart that actually showed you what we already are delivering and achieving. And I wanted to talk about cash because we know at Bombardier, that our story is largely about cash, especially in the mid and short term. So this chart, if we walk through it, it already tells you what the business is doing today, before we get into 2020.

 So number one is that from our core operations, before you've talked about what I'll call transitional investments and I'll talk about them in a second, we produce today $500 million, $600 million of free cash flow as we speak. And the transitional investments are what? Global 7000, development, ramping up working capital so we get to delivery rates in '19 and '20. It's about reducing C Series inventory overhang from undelivered -- from undelivered -- excuse me, for a second. It's about C Series early unit ramp up, so as we get through this $400 million of cash usage, could be up to $500 million in 2017. You will see that evaporate as we achieve breakeven in 2020 but right now, that is part of our cash flows. And finally, we have been investing and continue to invest in restructuring and that is to the benefit of expanding margins, and you've seen what our margins have been doing.

 So collectively, those transitional investments, once removed, show you $600 million of cash generation, and that cash generation includes the servicing of our debt. So for us at Bombardier, that is really an important indicator of future success because if you can believe the following: one, that we will enter the 7000 into service and that we will make the program profitable by 2020, generating cash; two, that the C Series will be a breakeven program from a cash generation, including a strategic alliance with Airbus; and that three, we'll have completed all of our restructuring investments and as a result, our margin expansion plan. Then, what you basically have is a $600 million cash flow turning into $750 million to $1 billion, simply by converting future earnings growth into cash, and that is the $1 billion cash flow story at Bombardier over the next 2 to 3 years.

 So here's the path for 2018, free cash flow breakeven, which I think is the most important, critical, short-term step and goal for us. And I'll break it down simply. Again, similar forces I've been talking about. $150 million of free cash flow generation comes by converting earnings growth. We have $630 million-plus earnings this year, that will be somewhere $800 million to $900 million next year. We'll convert that at better than 80% of $1 of earnings to cash, and that will generate $150 million of cash flow.

 Two, our 7000 CapEx program will start to wind down, we'll see probably $200 million of lower CapEx utilization in 2018. Again, by plan.

 Three, the C Series overhang on the aircraft that were not delivered in '17 will start to dissipate. So we'll have some of those aircraft actually going through the delivery phase, which are now caught up in working capital, and that was part of the challenges for 2017. So as that happens, you will produce cash flow from synchronizing better C Series engines and aircraft.

 And then, the working capital element here is critical as well. You have seen an intense buildup of inventories at BT, by design, in order to prime for top line growth and to complete projects, many of which were started in 2012, '13 and '14 that are now coming into the critical delivery phase. So that working capital will start to burn off as will working capital start to burn off in Aerostructures, where they have been ramping up for 2 major programs going into production. So they have built inventory, now they're going to enter a delivery phase. And as a result, you'll see working capital relief from Aerostructures as well.

 That gets you to breakeven in 2018. Again, it is structural.

 In 2020, if we look forward, CapEx will fall into line with depreciation. We expect depreciation now net of C Series deconsolidation, somewhere around $0.75 billion. So as you align, what will be likely a year of $1.4 billion this year in terms of CapEx, something around $1.2 billion in 2018, you drive down to somewhere around $750 million, you will see further tailwind to cash flows. C Series will achieve breakeven, as a result, that drag will come off a couple hundred million dollars. Restructuring, a lot of the heavy lifting gets completed in 2018 through the beginning of '19, which means many much less investment requirement in restructuring by 2020, we will be into normal operations.

 And then finally, we continue to grow profitability, which continues to convert to cash. Altogether, that generates $1 billion of sustainable free cash flow that has a long runway ahead beyond 2020.

 So now, putting all of this in perspective. We know this is not going to be a walk in the park. So what I've shown here is a chart that tells you what to expect through 2018, how it's going to happen. The first half, will be different than the second half and I will talk a little bit about why. We need to navigate, there's many moving parts in all of our businesses through '18, which is why it is a turnaround year. We'll see heavy cash consumption in the first half and your chart shows you why. We will fund and remain committed to getting the 7000 into service by the end of 2018, which means we will allow funding to flow to the program, development, working capital, production ramp up. It will happen.

 BT inventory will continue to remain high in the first half of the year, as they continue to accent the delivery period. And then, as we start to get trains out the door in the first half, but also significantly in the second half, you'll start to see some normalization of working capital and EBIT -- and cash flows there. And then finally, we'll see slower -- we'll see a slower burn off of C Series inventory and aircraft in the front end as we get synchronization with engine deliveries, and then that will improve in the second half.

 So in the second half, what you can expect is somewhere in the middle of the year, we will be at kind of maximum term or a maximum g-force in the business. And that's really when things start to swing and kind of go over the -- come out the turn from the second half. So cash advances are a driver in the second half on the 7000. We expect to see advances coming in as 2019 delivery units start getting set up for production, customers will start producing advances. We'll have delivery peak -- peak delivery at BT and therefore, WIP will stabilize. And then finally, we'll have some rhythm between C Series engines, aircraft and aerostructure, and that will be working capital kind of gradual, consistent, maintained benefits. And that's what the year will look like. So through the first half, much like the first half in '17. In the second half, powerful cash generation for the business.

 Maybe I'd kind of switch gears for a second and just talk about C Series and the investment commitment that we made in November of 2015. We talked about $2 billion of investment from January '16 through breakeven 2020, when we first put out this plan. We remain committed to that $2 billion investment and I'd like to talk about it in relation to the investment or the partnership with Airbus and what it all means, and including the cash funding commitments.

 So by the end of 2017, my expectation is that we'll have spent about $1.5 billion of the $2 billion. In 2016, $1 billion, we called the $1 billion, we spent $1 billion. In 2017, we said $1 of cash for $1 of negative margin. More or less, I expect to be $400 million, $500 million of consumption this year on the C. So $1.5 billion towards that $2 billion means there is somewhere between $500 million and $600 million left to spend '18 through '20 inclusive.

 And if you recall, the backstop agreement with Airbus is that we would continue to fund up to potentially $700 million but more importantly, to breakeven ramp up. And as a result, by doing the math, which we still are very confident with that $2 billion, what you see is that if you assume about $200 million of usage in '18 and you assume a transaction closure somewhere in the back end of the year, what's left is somewhere in the neighborhood of $300 million to $400 million of funding, post close. And that really is approximately half of the commitment we made with Airbus, and that supports our $2 billion plan. And I would say that the Airbus partnership is an accelerant and is fully correlated with us being able to bring the program to breakeven by 2020.

 Now also understand one last point, which is to the extent we make investments in the C Series JV, that $300 million to $400 million, they will also return redeemable shares. As a result, there is a monetization of those investments in the future.

 So perhaps as we close off here, looking at the overall 2020 objectives. Number one, we're building a great business, it has amazing products, we've shown innovation across every business unit. Two, we have created a lean cost structure that keeps getting better that will take advantage of scale and growth as it comes. Three, we have tremendous backlogs: 7000 sold out through '21, C Series backlog continues to get better, and the train business has over $33 billion of sales behind it.

 We have tremendous IP and technology assets in every part of our business that have the ability to continue to be leveraged. And finally, we're entering into the harvest cycle of a long investment period. And our growth is not tied to any form of economic recoveries or rebounds, it's coming from product introduction and backlogs. Each business unit is strategically well positioned to take advantage of top line growth, margin expansion and cash generation.

 And here are those business units, and I'm going to let my colleagues talk about all the great things that are happening there. But in summary, when you look across the board our 2020 objectives, BT, we have reshaped the business, we have scale and we're entering into a strong delivery cycle that's going to see a $10 billion franchise, generating more than 9% margins by 2020.

 At BBA, if you want to buy a legend, you buy a Lear; if you want the best value and utility in business jets, buy a Challenger; if you want performance, comfort, there is -- and range, there is nothing better than a Global. And soon, if you want to have the best business jet anywhere in the world, the Global 7000 is going to be here.

 BCA, strategically positioned with the Airbus partnership, with the ramp up, a backlog that continues to grow and truly enabling technology that's creating a segment in the 1:150 category. It's extremely well positioned to create value for shareholders.

 And at BAS Aerostructures, we have tremendous capability, we have capacity across the business, Michael will talk more about it. We have a great cost structure that keeps getting better, and we are able to grow to 9% or 11% margins and produce cash with that business unit over the next couple of years. And so you see each of their business unit targets and objectives for 2020.

 So with that, before I turn it over to the business unit presidents, I just want to reiterate our plan. One, it's on track. It's on track from where we started in '15, it's on track for '17, we have line of sight for our 2018 objectives and to our 2020 goals. We have demonstrated our ability to drive our transformation, drive margins and execute across programs and projects. We have been disciplined about markets and production rates. We continue to grow our backlog. We're positioned to deliver and are focused on execution, and we are building earnings power and the ability to generate significant and sustainable free cash flow.

 So with that, we'll take questions at the end. I will turn it over now to Laurent Troger of Transportation.

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 Laurent René Octave Troger,  Bombardier Inc. - President of Transportation   [5]
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 Hello everybody. It's a pleasure to be in New York again. So one thing I can tell you is the climate is still good for train. There is a strong momentum all over the planet to invest in capital projects, many to develop new infrastructure but also to renew infrastructure.

 And Bombardier Transportation is very, very well-placed globally and not only in geography but also, all through the value chain. And we have today, a fantastic asset in our hands. First thing, let's remember that it's all about moving people. And one of our main assets is our credibility in this industry. And we are moving every day, hundreds million of people everywhere on the planet, 24/7, that's our credibility.

 We have delivered more than 100,000 cars over 70,000 kilometers of track, which gives us a very, very unique experience about moving people in different infrastructure. We have around 37,000 people who have unique skills on this infrastructure on train, and we are working with more than 500 customers in 70 different countries, and we are partnering with more than 200 cities. So we have become a long-term strategic partner with most of our customers.

 Last year, I told you that we launched an important transformation plan on 5 pillars. The first one was about our global sales and I can tell you that it is today, giving some good results, and our book-to-bill is superior to 1. On the last few days, we have signed for more than $1 billion of others. So we expect this year to be above 1.1, and it's a great momentum for Bombardier Transportation.

 We're also accelerating the revenue growth and we are growing this just last year, more than 10% growth. Additionally, you know that we have focused our organization on delivering some key projects that are very critical for us in order to deliver the next year result as John mentioned, and we are very well positioned there. We have achieved significant homologation during the year and we are ready for 2018 delivery.

 You know also that we have launched one of the major restructuring program in the industry to optimize our footprint, and this is going very well. And the last pillar is about our operational efficiency focusing on quality, time and cost.

 So today, I can say that we are very well positioned all along the value chain in different ecosystems across the planet. And I have taken 3 examples that illustrates the right positioning.

 The first one is in the U.K. with our AVENTRA platform for regional and intercity train. This platform has been launched 4 years ago. It is the most successful platform in the industry so far. We have signed this week, an additional order with West Midlands to deliver 330 additional cars. And not only we deliver the equipment, the trains but also, the services in a very fast growing environment.

 The second example is in Bangkok, and the fast-growing city is looking for a very efficient mobility solution to move people within the city. And Bangkok has in fact, decided to go for a monorail solution. This monorail solution enables to move between 25,000 and 40,000 people per hour per direction in the city. It is being delivered in 5 years, and the cost per people per year is one of the best that you can imagine.

 And the last one, and this is a very unique project in Australia, where we deliver a fully automated freight solution. We are moving 2-kilometer train automatically without driver from the mine to the harbor, and we deliver a unique performance to BHP, who is the operator of the mine.

 So what I can say is, we can see the result of this strategy. The first one is that we are growing our revenue. Last year, we were in the range of $7.5 billion; this year, $8.5 billion and we are looking to grow. And the second element in term of profitability, last year, we were at 6.6%; this year, we are expecting to go in the 8% and we are targeting the 9%. So we have already demonstrated that we can achieve that and we are even more ambitious to continue on our plan.

 We have a very solid backlog at $33 billion and we have an execution machine that starts to really bring the benefit of our transformation. So the transformation should enable us to position Bombardier Transportation with a higher level of competitiveness on the market. And in fact, we have 3 pillars there. First is the revenue conversion and the mix of our sales. We want to increase the level of signaling and system and services up to 40% of our activity, while we are growing.

 You know also that we have launched a significant reshaping of our product portfolio with a platform approach, and we want to go to a 70% reduced factor in our product and our processes across the company. And you know we have launched the development of Center of Excellence in Engineering and in Manufacturing all across the world, and we will establish 30 centers across the planet. And you know also that we have a very important restructuring program that is today, completed for 2/3 of it. And we have also already achieved very important agreements with the unions in 3 main countries: Switzerland, Germany and Belgium. And we want to continue to develop on our operational excellence.

 So what makes us very unique as Bombardier Transportation is the value that we deliver to our customers. And those values are becoming more and more critical anywhere you want to move people. So if I take 3 examples, the first one is about capacity because of congestion in the city. And here, I can say that the focus is increasing because of the organization. And what is very critical here is the quality of the product and quality is in our DNA of Bombardier Transportation.

 The second element in the mobility, this is the time and the quality of the mobility. And we have developed this expertise in high-speed, so this is the example of the Frecciarossa in Italy, from Milan to Rome to Napoli, where we have demonstrated this unique experience to travel within high-speed trains and to enjoy the journey. We do that with our customers in an open dialogue in order to develop the best mobility solution together and to ensure the long-term sustainable solution for both parties.

 And the third one is the fleet maintenance excellence that we have developed over the years. We have a very strong growth in our service business but it's not about delivering service, it's also to ensure that we have the maximum utilization of the assets on the infrastructure side and on the train side, that enable the operators to get a better return of their operation.

 So what I can say today about Bombardier Transportation and this is the continuation of last year, is that we are executing our transformation for higher growth and higher margin. And there are 3 key messages. The first one is that we want to optimize our overall assets all along the value chain in different geographies. We want to continue to focus on quality, time, cost and execution, and we want also to continue to drive the transformation of our structure, our processes. And also, we want to continue to attract talented people in our organization to remain a market leader.

 So I thank you for your attention. And now, it's time to take off, and I invite David for the Business Aircraft.

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 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [6]
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 Good afternoon, everybody. It's great to be back with you here in New York again this year and look forward to presenting. So as John alluded to, Business Aircraft is really focused on performing through strong execution. Over the last several years, we've taken a real effort to make sure we're building a stronger business franchise. We've been very focused on our production management, making sure that we're aligning supply with demand in the marketplace. If you think about our aftermarket, we have one of the largest installed base. We put almost well over 100 aircraft a year into the market and we're focused on world-class service for our customers to make sure we can continue to do all the -- and support work we need for them.

 We're striving to have an earnings engine. So we're very focused on cost, so that even on lower volumes as we've seen this year, we can continue to drive our earnings power and then making sure that we're well positioned as the market starts to recover with the Global 7000. So really demonstrating that we can perform in any market conditions.

 So I've had the chance to meet with a lot of you through the course of the year and obviously, a lot of questions about the market. So on the left hand side of the ledger, one thing we're pleased about is obviously, improving market indicators. When you think about worldwide GDP, very important for my business to have something over 3%, which we're seeing. Stock market 24,000, adding about $2.4 trillion of market capitalization over the last 12 months, which is important. Increasing oil prices, at I think around $56 a barrel. Pre-owned inventory levels, at record lows in the last 10 years, so very positive when it comes to replacement and valuation. And also, strong aircraft utilization. I think 10 consecutive months domestically in the U.S. and 6 months consecutive improvement over the last -- in Europe, along with the UBS market sentiment increasing over this last quarter. So very good, these are the things we like to see.

 Now on the right-hand side, the reason why I feel good about this is we're well positioned as the market actually starts to demonstrate and facilitate higher demand. We have a great product portfolio from Learjet, with over 3,000 deliveries, a great brand, good franchise with a strong installed base and service business. Challenger 350, the most delivered aircraft over the last 10 years. A category-killing aircraft, it's a great, great utility aircraft. Challenger 650, delivering 2 to 1 against the competition, as well as our Global 5000/6000, where we launched the Premier cabin at EBACE this year. So all of our platforms refreshed from an avionics perspective, interior, connectivity, engine, et cetera. So we feel very good about our product lineup as well as our Global 7000/8000 employees for entering into service in 2018.

 So when we think about our guidance as we reaffirmed our plan for 2017, is on track. Even with our cautious optimism about the market, we're going to be prudent as we move into 2018, with a similar production and delivery volumes as 2017, with our focus on driving higher earnings and some incremental revenue as we to start to deliver the Global 7000. On track to be a very strong growth story, over $8.5 billion by 2020. Again, with strong EBIT margins as we grow, and on track to be a $10 billion corporation within a year or two after that.

 So components of our growth strategy rely on our aftermarket strategy. If you think about our installed base, we have one of the largest installed base of any OEM, with over 4,700 aircraft. At any given day and time during our fiscal year, we can have 150 aircraft in our service centers. We will touch over 1,000 customer aircraft through the course of a year.

 We also have to make sure that we are everywhere in the world. We opened our London Service Center in Biggin Hill, it's full to capacity as we speak. Launching our Tianjin service center, also a force multiplier, having our mobile repair trucks around domestically in the U.S. and in Europe that they can get to remote locations to take care of customer issues real-time and very thoroughly. We've also invested in our service network, giving capabilities such as interior modifications in avionics and paint, along with adding products and services that only we as an OEM can do from an IP perspective and also from an OEM design capability. All of that has led to double-digit revenue growth within the fiscal year of 2017, which we're very pleased with, as well as actually giving world-class service to our customers which is the most important part of this.

 When you think about the Global 7000, I've had a chance to review this with many of you, it is the largest purpose-built business jet in the industry. It's a category-defining product, there is nothing else like it in the industry. If you think about it, faster, farther, it's 10 feet longer than its competition. It has a slow speed, steep approach capability when you're on the city. When you walk into this aircraft, it has the largest galley in the industry, a full kitchen. You walk back to the first zone, the conference grouping; you then go into the dining area, which has formal dining capability for 6 people; you then move back into the entertainment area, where you have high-speed video capability and large-screen TV; then you can retire to the stateroom, which has a full queen size bed; and then it has a full lav with shower capability. This has the range capability of New York to Mumbai, 16-hour trip nonstop. When the competition tells you they have a 4-zone aircraft, they don't. They have a compromised lav, they have a compromised force zone, they have a compromised galley and most likely, they have to take out the crew rest, which means you can't actually use the aircraft for a 7,000 nautical mile trip. Very important, this aircraft has no compromises and that's why it's getting such attention in the industry and we're very excited about it.

 The program is progressing very well. Over a year ago, I stood up here, we had just flown FTV1 November 4. Now, we have 4 FTVs in the air, with over 1,100 flight hours and retiring risk every day as these aircraft, a very significant level of maturity that we're very pleased about. So rather than me explain each one of these, we're going to play a short video for you.

 (presentation)

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 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [7]
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 So many of you had the chance to be with me at MBAA where you could actually see the aircraft real-time, and stunning aircraft. FTV5 is imminent for a first fight here shortly, and production line has started, customers are specing the aircraft and so we're very excited about the ramp up of the 7000. So as we transition into 2018, again, it's all about focus on execution. The 7000 entering the service is incredibly important obviously to us, with that being a large component of our growth. Continue to focus on our aftermarket strategy, again, largest installed base, world-class service for our customers and adding 135 aircraft a year. That gives us a distinct advantage that we owe them to kind of take care of our customers. And no matter what the growth, we're going to focus on driving productivity and efficiency.

 So, thank you. And next, I'd like to introduce Mr. Fred Cromer, President of Commercial Aircraft. Round of applause.

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 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [8]
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 Okay. Thank you David. Thank you, everyone for joining us this afternoon. My name is Fred Cromer, I'm the President of Bombardier Commercial Aircraft. I have the proud honor of representing thousands of people that build, sell and support our commercial aircraft all over the world. We have the Q400, we have the CRJ and obviously, the C Series as well. I've got a handful of slides for you this afternoon. As we close out 2017, very exciting time for us and then a couple of slides as we look forward into 2018.

 So to start, probably the most exciting thing that's happening in Commercial Aircraft today is the fact that the Airbus is going to join us as a partner on the C Series program. An announcement that we made not that long ago, getting a lot of attention in the industry and for us, it's an incredibly exciting moment for the C Series program as Airbus brings an extensive sales and marketing organization, a massive procurement organization and certainly, a worldwide customer support presence to supplement what we're doing at Bombardier and really continue the momentum that we've been speaking about on the program.

 So today, we're sort of deep in the integration ahead of closing. We look forward to closing in 2018 so that we can hit the ground running as a joint entity and a joint venture and as I mentioned, continue that momentum, continue to build that order book and certainly, put more and more aircraft into service.

 The addition of Airbus into the C Series program not only endorses the product itself but it actually is a recognition of the market potential that we, for years at Bombardier, have been talking about in that 100 to 150-seat category. With over 6,000 airplanes in terms of what that opportunity is over the next 20 years, split roughly half and half between a replacement requirement that's coming as well as growth in that segment. And as we have been talking to the industry and really educating the industry, there is no other airplane like the C Series that delivers the passenger comfort, the performance and the economic advantage that you have in the C Series in a smaller airplane. And what the industry is starting to recognize is that the power of the unit costs of the C Series that rival much larger airplanes is an incredible tool for fleet planners at the airlines across the globe.

 And when I talk about the momentum, that's the momentum that we're feeling because we are connecting directly with the fleet planners, the people that are looking forward in their networks, how can they use an airplane with this kind of unit cost advantage. And certainly, Airbus coming in endorses the product and we couldn't be more excited about that.

 The most frequently asked question I get about the partnership is, why now? So obviously, it was pretty well known that we had talked to them before but today, where we are on the program, certainly, we're past flight testing, we're past certification, not of just one member of the family but both members of the family, and we have the aircraft in service today. And it doesn't seem like it was that long ago that we launched the service with Swiss. Today, we've carried over 2.5 million passengers in the C Series that have been able to experience those incredible product features. And even as exciting is the fact that our customers are telling us that the airplane is performing about 3% better than what we said it would do. That's significant. It's not just 1% or 2%, but on average, it's about 3%.

 So the airplane is doing quite well. The industry is starting to understand the success of the program, and the entry into service is going quite well. I could talk about the entry into service, the success of the program, certainly the progress that we made in building the order book, but it's better to condense it into 1.5 minutes and I'll show you a video as well. So if we can roll the video.

 (presentation)

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 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [9]
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 So I can tell you, there's a lot of excitement around the C Series. The other thing that I'll tell you about entering the service is that we're really being tested. We have Swiss on the one hand, that's flying a very high cycle environment, shorter flights, airplane up and down, in congested hubs every day. And on the other end of the spectrum, we've got Air Baltic, which is flying the aircraft in longer flights but 15, 16, 17 hours a day of utilization, which is phenomenal for a brand-new airplane. So again, a lot of excitement around where we are with the C Series.

 About 25 years ago, Bombardier revolutionized the regional market with the introduction of the regional jet. So we celebrate the 25th anniversary this year of the CRJ and we continue to focus on both of our programs in the regional space, that 60 to 100 seats with the Q400, one of the most capable, if not the most capable turboprop on the market today and the CRJ. So the Q400 continues to really serve a real need in emerging markets. We recently announced an add on order with SpiceJet for 25 additional Q400s, obviously, very exciting for us. And while the industry was talking about the potential need for a larger capacity turboprop, well it's already here. We're launching a 90-seat version with SpiceJet next year as we deliver the aircraft.

 So again, the Q400, we've had a lot of recent traction. We feel very good about where we are at the program and look forward to continuing to make progress and earning more of our fair share of that market as we look ahead.

 On the CRJ, we're continuing to deliver that airplane into Asia, with the likes of China Express, expanding the markets, developing the regional market in key areas in China, very critical to their overall strategic plan. In Europe as well, with CityJet as an example, feeding the SAS network. So again, both in Asia and in Europe and in North America, we feel very good about the CRJ and the position of the CRJ as we look forward to a replacement cycle that is going to come our way in North America. And the exciting thing with the CRJ is that we've launched what we call the Atmosphère interior. We have adjusted the overhead bins, we've created some additional storage space on the aircraft so that just about every passenger can bring their standard sized rolling bag on board and get rid of the congestion at the doorway when you have to drop off your bag or pick up your bag. We have increased the size of the forward lav as an example. So the new interior, I think, reenergizes this program and really creates an incredible product in that regional space, up to 100 seats.

 The other advantage we have on the CRJ, particularly the CRJ900, with seating capacity in that 75-seat range that's required by scope clause with many of the airlines in North America, is that airplane meets all the scope requirements today. And that is not true with the competing aircraft, the 175-E2 or the MRJ. Both of those aircraft require a scope clause relief to be able to enter the market.

 So again, the CRJ, I think we feel very good about it and continue to press forward as we think about the replacement cycle that's ahead of us.

 In terms of our plan as we look forward to 2020, John talked about the financials of it, I'll just summarize here briefly. We have revenues for 2017 of about $2.5 billion, increasing in 2018 to $2.7 billion. We would be on track to $5 billion, consistent with what we've been talking about with our 5-year plan. Obviously, with the Airbus partnership coming on board and deconsolidation, that revenue will look a little bit more like $1.5 billion on the Q400 and the CRJ program. EBIT with a loss of $400 million, improving that to $350 million next year and then certainly on track for a positive results as we look out to 2020. And then on deliveries, 70 to 75 aircraft this year. Next year, we split that out for you, 40 C Series and about 35 CRJ and Q400s. Again, I talk about the potential we have in those programs but at the same time, we are very mindful of not taking on undue risk in our business in terms of white tails. And what that means is we're going to make sure that we balance what we see year by year as the demand with the supply in terms of what we're producing. So very prudent approach there, something that we're also very focused on. And then by 2020, 90 to 120 C Series and then obviously, stable production going forward on the Q400 and the CRJ.

 So again, the point here is that we are on track. We just -- this year is the completion of sort of the second full year of the turnaround plan and we're looking forward obviously, 2018 next year and beyond.

 Specifically for 2018, what are we focusing on? Obviously, trying to get where we need to be with the integration process with Airbus so that at the close of that transaction, as I mentioned, we're ready to hit the ground running as a joint team approaching the marketplace, achieving something bigger than what we at Bombardier were planning to do on our own. So when you think about Airbus coming in on the C Series program, think about that market of 6,000 aircraft that I've talked about, think about the fact that there is no other plane like the C Series and we are excited about the opportunity with Airbus in doing something bigger together. The C Series production ramp-up is obviously something that we're intently focused on, making sure that our suppliers are in sync with us so that we can achieve that ramp-up, continue to build the order book and drive down unit cost as we produce more and more aircraft. And as I mentioned, capitalizing on the market opportunities we see in front of us for both the Q400 and the CRJ.

 So as I mentioned at the beginning of my presentation, we are looking forward to 2018. It's a very exciting time for us and we can't wait to get after the objectives that I'm showing here on this slide.

 So with that, I will turn it over to Michael Ryan.

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 Michael J. Ryan,  Bombardier Inc. - President of Aerostructures & Engineering Services   [10]
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 Thanks, Patrick. Good afternoon, ladies and gentlemen. As Alain said earlier, I'm Michael Ryan. I was appointed President of Bombardier Aerostructures and Engineering Services Division earlier this year. And it's an honor to be here for the first time, representing the people that I work with.

 Whilst I was appointed this year, I have 35 years experience in the Aerostructures business with Bombardier. So hopefully, I'll be able to lead the division as well as in that before.

 I'm really excited to be here to be talking about how we can leverage the significant manufacturing capabilities that we have in Aerostructures and over 100 years of knowledge in designing and manufacturing our structures components. I'm excited, although I have no exciting videos, to be talking about our people, our products and our processes, our progress to our plan, the significant contribution we made to the Bombardier Business Aircraft and Commercial Aircraft platforms, and how those capabilities have us pleased to be able to exploit a very fragmented Aerostructures market in the world today. Seven companies have 50% of the market, the other 50% has over 200 companies in it.

 I would show you that we build -- we design and build product for over 84% of the revenue generating Aerostructures market going forward. We're one of the few within that when we look at our peers that go from research and development to product development, detail design to testing, certification, manufacturing and integration and then, supporting the aftermarket. And when we look at manufacturing, we manufacture in advance composites and metallics. We do assembly, we do wiring and we support in terms of component repair and overhaul and spares in the aftermarket.

 So we have a full breadth of capability in Aerostructures on Bombardier platforms and on non-Bombardier platforms. And even better, on top of those capabilities, design and manufacturing, we also combine that with a cost competitiveness. We support our Belfast and our Montréal manufacturing operations with operations in Mexico and in Morocco, giving us a blended cost opportunity to support our customers.

 So when we look at what we're doing particularly supporting the Bombardier growth platforms, obviously, as both Fred and David have remarked, we're ramping up on the C Series, on the Global 7000 platforms. And obviously, being part of the supply chain and the manufacturing end, then that ramp-up in Aerostructures is about 6 months ahead of where the fine lines are. So we're already rolling on a rip which will support the ramp up rate for the middle of next year for both Business Aircraft on the Global 7000 and Commercial on the C Series. We're supporting the testing, the certification and obviously, the entry into service of the Global 7000 program itself.

 And our own transformation, and Jim will talk after me about where that is at a company level, but our own transformation is driving the improvement in our financial results. Internally, our continuous improvement and our Lean programs are driving productivity, driving efficiencies. Our technology is contributing to that and our industrial strategy with respect to optimizing our global footprint is also having a significant contribution to our margin expansion. And then we look at external with our building material, with our suppliers, we're consolidating our supply chain. We're helping them through reengineering, through dispatching where we need to, and if we have to through resourcing as we drive down the unit cost for the external part of our unit cost as well as our internal efficiencies.

 And then as we look at diversifying our revenue stream, we already have non-Bombardier aerostructure platforms or aerostructures components in our portfolio. You may have seen a number of weeks ago, we announced that we'd won in a significant competitive bid, a nacelle component with Airbus. And that's building on 40 years of nacelles development, design and manufacture in our Belfast site. It's all through building on 30 years of our relationship with Airbus in both nacelles and in other aerostructures components. So we have capability and we have capacity to expand our revenue in Bombardier platforms and in non-Bombardier platforms.

 So when we look at the financial results associated with that, as John said, we're going to move from $1.7 billion guidance this year in terms of revenue to around $2 billion next year, so just over 15% growth. And then by 2020, we're going to move up to $2.25 billion, which is approximately another 15% growth. And that's built on the platforms and the programs that we already have developed and in production today. Obviously, significantly on the back of the Global 7000 and the C Series but supporting as well, our other Business Aircraft platforms, our regional aircraft platforms and our other non-Bombardier businesses as well.

 And then when we look at the EBIT side of it, we've come from around 6% in 2015 to the 8% guidance we've given this year, 8.5% next year, and then getting up to between 9% and 11% in 2020. And that's at the upper end of the benchmark comparison with our peers in Aerostructures in terms of margins. So all of what we're doing in terms of driving our efficiencies, reducing our cost is coming through in the bottom line, and then that's obviously coming through in free cash flow also.

 So what better way to show what we do than to demonstrate how that contributes on our newest platforms. And if you take the C Series first, you look at the wing, the most advanced composite wing in production on a civil aircraft today. Patented technology, manufacturing one-piece wing skins, which contribute internally to help us with cost but significantly support our customers with lower weight and with improved aerodynamic performance. And Fred mentioned that in terms of the operating costs that our customers are already seeing.

 When we look at the fuselage sections that we're also building in composites, we're applying robotic techniques to improve the quality, to drive down the costs as well on highly structured components and composites for the fuselages. And then perhaps, what we undersell or don't talk about enough is even what we're doing in metallic structures for our Aerostructures business. When we look at the cockpit of the C Series, the most advanced cockpit in production today in the world, the aerodynamics associated with that, the structural integrity of it, the integration with the pilots, the side-stick control that we've done for the first time, all of that has forced us to and been able to deliver the most advanced design and manufactured cockpit today.

 And then when you look at the doors of something as big as a C Series aircraft, the structural requirements for a door, the functional requirements for a door from a regulatory point of view and obviously from a passenger access point of view, require a capability that is not very present in many Aerostructures manufacturers today. And that gives us a breadth of capability that is frankly on parallel for the Aerostructures business today, built on the back of Bombardier platforms and on Bombardier work.

 And even better, when we look at the Global 7000 and better from a competitiveness point of view, from a derisking point of view and from an exploitation of technology point of view, we've -- the lessons learned, the capabilities we have developed for the C Series, then we've applied to the Global 7000. The horizontal stabilizer on a Global 7000 because of the size of the aircraft and its range is bigger than a lot of small business aircraft wings. We've used the same patented technology that we developed for the C Series to build a lighter, more aerodynamically performing horizontal stabilizers supporting the mission for the aircraft. We have built on what we did for the cockpit for the C Series, to build a cockpit which as David mentioned, is the highest, the fastest flying Business Aircraft at Mach 9.95 -- or 0.995 we've done. And you think of the structural integrity, the aerodynamic requirements that a cockpit has to have and has to be tested to, we've applied that to the Global 7000 also and then similarly, we've applied the same technologies and exploited those on the doors as well.

 We're supporting the Global 7000 through full-scale testing in our Aerostructures division, static testing and durability testing, derisking the program on the back of what we did with the C Series and applying those lessons to the Global 7000. And then, we've had the opportunity to expand in that going forward as well.

 So in closing, we're drawing momentum on the key value streams for Aerostructures. We're building on existing capabilities, our technology, our industrial strategy, our geographic opportunities to blend our costs. In 2018, we'll see a 50% increase in activity on the Global 7000 and on the C Series. We'll support the entry into service and certification and entry into service of the Global 7000, and we have a year-on-year net cost reduction contributing to the margin expansion that we have shown.

 We're drawing our aftermarket business, exploiting those capabilities in design, in manufacturing and the capacity that we have on Bombardier and the non-Bombardier programs. So we're supporting our Bombardier platforms, we're transforming our own business, we're performing in terms of our financial results and we're growing our business. And that's a great story for Aerostructures going forward.

 So thank you, and I'll hand over to Jim Vounassis, our Chief Transformation and Procurement Officer.

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 Dimitrios Vounassis,  Bombardier Inc. - Chief Transformation and Procurement Officer   [11]
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 Thank you, Michael and good afternoon, New York. It's a pleasure to be back here with you again this year to talk to you over the course of the next few slides about our operational transformation and where we are in our journey.

 I'd like to first start off by taking us back to 2015 because I believe in 2015, we established 3 key tenets that form the foundation of the success of our operational transformation. The first tenet was that our operational transformation is center-led to provide consistency and stretch. Second tenet, the operational transformation will be driven in each one of our BUs. So each one of our business units has operational transformation teams, those teams are driving initiatives inside the BU. And the third one and probably the most critical one to this audience is that the operational transformation's financial performance would be built into the BU's financial targets. So there would not be a separate ledger of financial performance for the operational transformation, it is fully integrated into the financial goals of each one of the business units.

 These 3 tenets have resulted in creating what I call a solid foundation, because everyone in our BUs is incentivized to drive the operational transformation to hit its goals.

 So where are we at the halftime report? There's 3 big levers we're pulling on in our operational transformation. The first one, it's all about us. It's really all about reorganizing ourselves to centers of excellence. Bombardier has a great footprint. We tended to do though everything, everywhere. So we stopped over the past 2 years, reinventing the wheel several times around the world. And we really focused not only our manufacturing facilities to be centers of excellence with key missions, but also our administrative functions, with key centers of excellence: HR, procurement, finance and engineering.

 The second big lever we're pulling on is all about partnering with our supply chain. We had a very fragmented procurement organization, we've been consolidating them to key procurement organizations in each one of our big business units. And at the same time, we have been leveraging the total Bombardier spend to drive win-win situations with our suppliers, including consolidating and reducing the number of total suppliers that we have.

 The last lever is all about liberating working capital, and that is all about taking inventory out of the system.

 So where are we today? Let me start first with the first 2 levers, the centers of excellence and partnering with our supply chain. These are the 2 levers that are really driving a good portion of the EBIT margin growth that you've seen in the business units.

 Some key metrics that I'm looking at internally with our teams. We have driven between 2015 and 2017, we've increased by 20% the EBIT per employee at Bombardier. This has been largely driven by our move to centers of excellence. Along the journey, for our administrative functions, back in 2015, we had about 10% of our global population in global service centers. Today, we've passed 15% of our total population. If I talk about partnering with our supply chain, back in 2015, we had 6 different indirect goods and service procurement organizations, 6 of them. Today, we have 1, it's center-led and along the way, we've worked with our BU business partners. We've installed control towers in each one of our BUs that are really managing the demand part of the equation, and we've been able to go from over 18,000 suppliers on indirect goods and services down to less than 12,000. Bottom line, 20% reduction in the cost of our indirect goods and services at Bombardier.

 On aircraft unit cost. If I look back last couple of years up to 2015, we are really going up year-over-year by about the rate of inflation on our unit cost. Today, through the strong work of our manufacturing centers of excellence, applying the Lean tools as Michael mentioned, as well as the consolidation that our integrated procurement teams have brought, we have been able to bend the cost curve and take aircraft unit costs down. Now, these are great KPIs that we track with our teams internally. But for me, it's all about the chart that you see on the wall here. The operational transformation has stuck to the bottom line. It's been a key contributor to that 200 to 400-point margin expansion we've seen across BT, BBA and BAES.

 So what's coming up next? Where do we go to next? Well, we're looking for another 100 to 300 point expansion in these business units from now until 2020. And at the same time on the BCA, as we come down the learning curve of the C Series, we will breakeven. It's really all about continuing to execute along these big levers.

 Centers of excellence, pretty much 90% done on the Aerospace side and as Laurent mentioned, 2/3 of the way done on the BT side. So this lever will continue to drive benefits across '18 and into '19.

 In terms of partnering with our key suppliers, halfway done, we've got another half to go. For example, at the start of 2015, on the BT side, we were pulling from a pool of around 10,000 suppliers and we were putting them on each new BT project. Today, we've cut that in half and we'll cut that in half again by the time we hit 2020.

 Now, there's another element that's starting to come out of our administrative centers of excellence that's really exciting me and gives me strong confidence that we'll continue to see the benefits of the operational transformation past 2020, and that's really process efficiency. So what do I mean by that? Let me give you a concrete example in my own backyard.

 As we consolidated our indirect goods and services organization to one leader, we also shifted from all around the globe, the processes of creating and issuing an indirect goods and service purchase order. One would think, pretty simple task, right? Well, we consolidated it all to our center of excellence in Romania. And a couple of months ago, I had the pleasure to visit the teams there, and it was quite interesting to see what they shared with me. They inherited over 50 different processes from around the organization to issue -- to create an issue in indirect goods and services purchase order. Over 50, I was quite stunned. But they had them all there, they had mapped them all out, their Lean tools, it's part of the transition. And now, the team has started really looking at how to take these steps out of the process, how to simplify things and applying some very simple IT tools. We're going to cut that in half by next year and with some further automation by the end of 2019, we'll be down to less than a handful. And what we're seeing coming out of my own procurement administrative centers is happening also in finance, HR and engineering, and this gives our operational transformation legs.

 Now, let me shift to the working capital piece. Working capital, from my perspective, from an operational perspective, it's all about inventory. So our teams have been very busy reducing lead times on our assembly and subassembly lines, reconfiguring our assembly lines to make sure we add in at the closest point of delivery the highest cost components and, of course, working with our suppliers to bring down our material and stores.

 Now all this goodness has allowed us basically to absorb the strategic investments we've made to launch the CS100 and 300, the large BT projects that John talked about that are going to be delivering in '18 and '19, and at the top, we've kept our inventory turn stable.

 We're going to continue to drive these initiatives all the way to 2020 and beyond. The whole goal here is to continue to absorb the strategic investment. We have the Global 7000 ramp up that's on us right now, and we're going to continue building across '18. And as we come out of '19 and we become, I would say, much more steady state in terms of our investment in strategic inventory, then we'll see that quarter turn rise because we've been able to keep inventory dollars stable and -- as revenue goes up.

 So the operational transformation has clearly delivered results. You see in the bottom line, EBIT margin contributions of the business units. The 3 strategic tenants that we set off at the beginning to make sure that we integrate into our culture are working, and going forward, it's simply all about executing. Executing to optimize our centers of excellence and increase our efficiency, all about driving out our inventory to improve our inventory turns. And I feel confident that as our BUs head towards their 2020 targets, the operational transformation will be a key contributor to that.

 So with that said, I wish to thank you, and I'm going to pass it over to Patrick, I believe, for Q&A.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [12]
------------------------------
 Thank you, Jim. So I hope you enjoyed all the presentation and good lead in from Jim. He's driving efficiency, and we're actually very efficient on the presentation and on time. So it's a good. We'll have a bit more time for a Q&A. So I'm sure you heard, it's all about execution. They each presented their plan, their priorities. We'll obviously be answering some of your questions. I'm sure after 1.5 hours, you have many questions outstanding. For the Q&A sessions, so about 40 minutes in the room. Please raise your hands. We'll have mics. We'll bring mics over. For those of you that are on the webcast, I think on the top right-hand corner of your screen, you can type in your questions.

 So on that, I guess we're ready. We'll invite all of our presenters to come over.

==============================
Questions and Answers
------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [1]
------------------------------
 All right. Perfect. So I guess, we have the first question over there in the front.

------------------------------
 Justine Beth Fisher,  Goldman Sachs Group Inc., Research Division - Fixed Income Analyst   [2]
------------------------------
 It's Justine Fisher with Goldman Sachs. My question is about the cash flow outlook and what the upside and downside risks are. So I guess this question is for John. When you guys brought your recent bond deal you raised, I think it was about $300 million more than you needed to refinance the bond. Was that because there is a particular negative outlook for working capital? And I know you mentioned that 1H '18 is going to be worse than 2H, but is that -- is the company particularly concerned? And then on the heels of that, what are the factors that could put us at burning $150 million of cash versus generating $150 million of cash? Because there's a reasonable window there. So what are the upside and downside risks to your cash flow next year?

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [3]
------------------------------
 Sure, and thanks for the question. So I'd say simply it's every time we look at the business, really, honestly, what we're looking at is an amazing business that can generate tremendous cash flow on a consistent basis 2020 and out. And what we have is a series of steps of execution that we've already built up over the last 2 years here in terms of getting to the point where we are in 2018. So really, what we're talking about is very simply this set of objectives that are -- we have a high confidence and the ability to attain to create sustainable long-term value and that transition period in '18 as we execute on the projects that are going to get us there. So the thinking behind the $300 million was simply we don't need to play around with timing. There's no need for perfection here. What we need to do is focus on execution, the business units you need to think about, what they need to do in '18. And the conversation around the risk element, it's really about just -- it's timing, right? There is a couple of items here, whether we're a quarter early or a quarter late on a train delivery or on completing development, the reality is we don't need to be perfect at that. We want to be executionally focused, and after that, focus on creating that value for 2020. So that's really the way we're thinking about the business. No need to be perfect in handling liquidity and all this. So we have probably $2.6 billion dollars, $2.7 billion dollars as we close the year in '17. That's a great place for us to be as we go into this final turn.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [4]
------------------------------
 I guess, Rob, you had a question?

------------------------------
 Robert Michael Spingarn,  Crédit Suisse AG, Research Division - Aerospace and Defense Analyst   [5]
------------------------------
 Rob Spingarn, Crédit Suisse. David, the biz jet target for 2020, the revenue target is $8.5 billion now from $10 billion before from a year ago. If you could just elaborate a little bit on what's changed there.

------------------------------
 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [6]
------------------------------
 Sure. One of our -- as I talked about last year, our 3 components of growth. We're going to be sustaining programs, grow with the market, the aftermarket strategy and then the 7000. So we took a much more prudent view as we went into 2018 as we were going to actually start the progression of ramp up of our sustaining programs. But not seeing that the market conditions were going to be necessarily much different from '17 to '18, we're going to be more conservative as we think about our sustaining programs. But that being said, we have really tremendous operational capability. And with the reduction of our cycle times, as the market starts to pick up intra 2018, we can trigger production units for delivery and see them to be delivered within the fiscal year. So a large component of that change is really the sustaining programs probably pushing to the right versus starting to ramp up next year as the market recovers.

------------------------------
 Robert Michael Spingarn,  Crédit Suisse AG, Research Division - Aerospace and Defense Analyst   [7]
------------------------------
 So was there a commensurate drop in profit and cash flow from that in the 2020 forecast?

------------------------------
 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [8]
------------------------------
 It's all baked into the guidance numbers. So...

------------------------------
 Robert Michael Spingarn,  Crédit Suisse AG, Research Division - Aerospace and Defense Analyst   [9]
------------------------------
 In other words, would the guidance have been higher?

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [10]
------------------------------
 Well, I mean -- I'm going to step in. But clearly, if you have a $10 billion revenue line in business jets, you're going to have better profitability, better cash flows. So at the end of the day, I think -- and without putting words in David's mouth, we have, I think, continually been kind of prudent, proactive and just been focused on a disciplined execution with respect also to market. And so we're making a plan here that we know we can deliver. And at the same time, if markets are better, if there are some macroeconomic events that show strength, if there's a better convergence between kind of corporate profits and aircraft buying, then there'll be a higher number for business jets. And if there's a higher number for business jets, David's already shown that he can generate strong margins, and he's starting to convert those into cash flows as we speak. So yes, the answer would be, sure, if there's a top line growth on biz jets, we'll do better than where we are.

------------------------------
 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [11]
------------------------------
 And we still expect to be $10 billion, but it's just a function that we've -- it's more delayed to the right.

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [12]
------------------------------
 So remember, we did this plan in 2015 thinking that the Business Aircraft segment will do -- would do better. And if you look at that Business Aircraft segment since 2008, it has been relatively flattish. So I mean, it's a cyclical business normally linked strong correlation to corporate profits, and yet, I mean, we still see for the industry lower -- much lower deliveries than what we were seeing in 2008. So I mean, that's what basically we have now in our plan. I mean, we took a conservative approach to the plan in light of what we were seeing in the marketplace. If you look at what David and the team has done, it's pretty amazing. On lower revenues, he's been able to increase the margins and drive significant margin expansion, and that is the reason why we're doing well right now. So he has leaned out the Business Aircraft segment. In my remarks, I said like despite some difficult markets -- and really, that's what I was referring to. I mean, we -- honestly, we were expecting a much better business aircraft rebound than what we've seen.

------------------------------
 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [13]
------------------------------
 And I think, you and I have spoke before about this. The industry next year is going to be roughly the same with 510 to 530 deliveries in aggregate. We're maintaining our share within that space. But like I said, as -- the market indicators are all -- we're cautiously optimistic. If they start to improve, we'll ramp up our production, which would change our 2020 trajectory.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [14]
------------------------------
 We'll take our next question here in front.

------------------------------
 Unidentified Analyst,    [15]
------------------------------
 So I want to go back to the cash question just earlier. You're kind of showed us that you're going to have a lot of burn in cash in the first half and the second half. And I think in the last couple of years, that kind of approximated the $1 billion in the first half. I want to kind of ask if this is the order of magnitude you're thinking about as you go into 2018? And then as it relates to liquidity, I know you've done the deal recently, which derisked that quite a bit. But what do -- how do you think about the minimum level of cash you need to kind of have as you go through the 2018 cash flow time frame?

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [16]
------------------------------
 Yes, so I think you've probably put out the parameter there well in the sense that my expectation is I'll finish $2.6 billion, $2.7 billion at the end of the year, somewhere in that range in terms of cash on hand. I think it's a good place to be. The additional liquidity we raised supports that. And then first half of the year next year, I mean, without getting overly kind of detailed and precise, let's say, about $1 billion. It'll be maybe a little less than that, but that kind of neighborhood. So first half of the year, you kind of go down. You're north of $1.5 billion, and then you start a move to the other side. I think that's really what we're talking about for 2018, and then you come out overall breakeven.

------------------------------
 Unidentified Analyst,    [17]
------------------------------
 Okay. And maybe one more question to Laurent. So the consolidation, I mean, you've had discussions with Siemens and kind of we've seen Alstom and Siemens announce that merger. I'm wondering whether -- how do you think about your business competitiveness, especially within Europe, given the combination of Alstom and Siemens? Do you need to do something different in the next 3 years as they do that? And from a global basis as well, are you at a competitive disadvantage? What can you do to kind of neutralize what just happened with Alstom and Siemens?

------------------------------
 Laurent René Octave Troger,  Bombardier Inc. - President of Transportation   [18]
------------------------------
 So at first, as I said to you, BT to them, Bombardier Transportation, we are a global player in geographies and the value chain. So we can play the game on our own on a stand-alone basis. I also told you that the transformation of BT is not driven by consolidation. It's driven by the business requirements to improve the overall profitability. And there are fundamentals, and we go through that. So the transformation will enable Bombardier to be even better prepared for any type of consolidation. The third thing I told you is we have a very strong market position. And our book-to-bill above 1.1 demonstrates the fact that we are well positioned. So we are, of course, still analyzing any type of consolidation in the marketplace. But I want to insist on also the partnering that we have developed on the marketplace. And I have not insisted on this enough, but Bombardier Transportation is partnering with many, many players across the planet, and I can mention some of them. One, with the Chinese in China, where we have developed 6 JV. We have 1.5 billion of activity. We have 6,000 people together, and we have a very, very strong link with the Chinese partner. But we have also partnered with some of our customers. We have developed JVs in the services to grow the aftermarket activities and where we enjoy a very strong reputation. But we have also partnered with some of our technology players there. So consolidation is not the only answer to growth. We have others, but we're, of course, looking for other alternatives.

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [19]
------------------------------
 If I may add to this. I think that this is something that we've been looking at very seriously. We've been paying attention. We've been proactive at potential partnership, and this is some -- it's an action, this Alstom-Siemens potential merger, that we're following up very closely. But the fact is what Laurent is doing, working to optimize his business, is years ahead of what our competitors will be able to do. I mean, he's been working very constructively, very proactively with Union, with Labor in Germany and Europe to be able to take the cost down, whereas some other players in the industry are guaranteeing jobs for years to come. So I am very proud of what Laurent is doing in driving operational performance within BT, and that is going to give us the ability to do the right thing moving forward, so -- and whatever that is. And we've said very clearly that we are going to do what is right for the business and what is right for shareholders.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [20]
------------------------------
 We'll go to third row here and then in front over there.

------------------------------
 Unidentified Analyst,    [21]
------------------------------
 I guess, my first question would be on the biz jet side again as a follow-up to the earlier question there. So is it fair to assume then that you've sort of sized of revenue for 2020 based on where the current level of activity is in the business jets segment? Is there a risk that, that has to -- if activity doesn't improve, is there more risk to the biz jet revenue number?

------------------------------
 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [22]
------------------------------
 What I'd say is we -- our assumption is that this is probably the low point because I think from an industry perspective, if you look at the last 10 years, this is relatively the lowest point it's been both in 2017 and our forecast for 2018. So our assumption is, is that there's -- this is our base that we're going to be building from and that we expect only there to be incremental upside from a sustaining program perspective as we increase volume with the -- as the market increases. The second component is our aftermarket service revenue which we expect to capture. And the third component is the Global 7000, which is execution of our backlog. So 2 of the 3 components are still on track. The third one was basically just sized for the market conditions, and we will execute that as the market demonstrates that it's going to require it.

------------------------------
 Unidentified Analyst,    [23]
------------------------------
 And again, if I may ask just one more maybe to Alain. In terms of the Aerostructures business, obviously, that's going to probably gain an importance over the next few years as the C Series kind of comes out of the equation a little bit. Can you talk a little bit about if there's opportunities and maybe your thought process in terms of you maybe buying more aerostructures businesses and to maybe grow that by acquisition?

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [24]
------------------------------
 We're not in a buying mode right now because clearly we're more looking at optimizing that business. But I think there's potential opportunities. A lot of people thought that we would be selling that business very quickly. I mean, we saw the potential which is enormous. And also, it's very integrated within our Bombardier Aerospace organization. So right now, we're looking at how do we optimize it, and that's what Michael's doing. Taking cost out, optimizing processes, and we're lowering it. I mean, it was successful in winning this trust reversal business from Airbus on the 320 neo family, which is a big deal. And we will continue to see how we load that business because I think that volume would be very useful. So how do we do that has yet to be defined, but that's kind of the thinking right now. We would like to grow that business. It's a good business.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [25]
------------------------------
 Okay. We'll go to Kristine over there.

------------------------------
 Kristine Tan Liwag,  BofA Merrill Lynch, Research Division - VP   [26]
------------------------------
 Kristine Liwag from Bank of America Merrill Lynch. I have a 3-part question on the CRJ family. First, I was looking at your guidance for 2018. It looks like deliveries for the CRJ in Q400 are down to 35 airplanes in 2018 versus 56 in 2017. So first, what's driving that decline? And second, how much investment is required to refresh a CRJ family? And third, does your relationship with the C Series with Airbus open up opportunities for future relationships with them on the CRJ family? And is there value in finding a partner for that fleet?

------------------------------
 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [27]
------------------------------
 Three-part question. You're going to test my memory, okay. So on the CRJ, first, let me start with the investment because I think we get that question quite a bit. We canvassed the marketplace and we talked about the specific requirements as our customer base, and it's quite large, look forward on the CRJ. And overwhelmingly, the answer was on making a better solution to get more cabin stowage and refresh the interior. So the direct response to that was to refresh the interior of the aircraft. The other comments that we got were economically, the aircraft does fine. It's a workhorse. It's up and down every day. So when you think about fuel efficiency and things like that, you need longer stage lengths to really appreciate the benefit of fuel efficiency. And the CRJ, in most of its applications, are on shorter stage lengths. So we responded to the industry survey that we did and directly created what we believe is real value. And it wasn't a lot of investment. It was very minimal investment, actually. And I think the new Atmosphère interiors is quite impressive. In terms of any synergies related to the CRJ with the Airbus partnership, not directly. I think that JV will be a standalone JV with the C Series. However, I think having that JV with Airbus as a partner strengthens all of commercial aircraft and certainly can open doors for new opportunities where we maybe not see them today. And remind me the first part of your 3-part question.

------------------------------
 Kristine Tan Liwag,  BofA Merrill Lynch, Research Division - VP   [28]
------------------------------
 The delivery decline.

------------------------------
 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [29]
------------------------------
 The delivery decline. So the response to that is we obviously had a backlog and we're producing that backlog and we didn't have as many orders going forward. Now we've had recent traction on the Q400, and the challenge that we have right now is in that replacement cycle that I talked about on the CRJ, specifically, what does that look like going forward and when will it take place? Some of the things that impact a little bit are the record-low fuel prices that have been sustained for some period of time. That makes smaller 50-seaters, as an example, a little bit more economic. But if you look at the fleet plans of kind of the major airlines, they've continued to see over time phasing those out and up-gauging 2 larger aircraft, which we think benefits primarily the CRJ 900, also benefits the C Series as well in that up-gauging trend. So the real question is when will that occur? And in the meantime, we're going to size supply and demand so that we don't take undue risk in our -- in what I talked about earlier, about building white tails without a home for those aircraft.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [30]
------------------------------
 Maybe, Fred, we'll take a question from the web, actually. The question is how much gain in synergies can the Airbus bring to the C Series?

------------------------------
 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [31]
------------------------------
 Sure. So in terms of synergies, if you think back to the presentation that I made, it comes really in 3 areas. The first one is their extensive sales and marketing footprint worldwide. So in combination, what we've been -- with what we've already been doing in building that momentum and certainly leveraging existing customers for the Airbus product, I think will benefit the C Series going forward. And really, that alone will help capture even a larger portion of that 100- to 150-seat segment than I think Bombardier was -- we were planning on our own. I think we can point to the words from Airbus at the launch of this. The CEO of Airbus talking about that market, the real potential there and a plane unlike any other with the C Series. No reason why we shouldn't be targeting to capture at least 50% of that market, which would be 3,000-plus airplanes. So I think that is one area. The other area is obviously their massive supply chain and their procurement organization. They have so much buying power that when you add the C Series into that, how we approach the supply base I think will yield tremendous benefits in terms of our efforts to continue to drive efficiency and cost in the equation. So those are really sort of the primary areas of the synergy. And then in terms of supporting the aircraft, they already have a worldwide support network that we can tap into with the C Series. So it sort of derisks the proposal in the minds of our -- some of our customers. We obviously have a worldwide support network supporting regional aircraft today. But to tap into what Airbus does, it really removes some of the risk and makes a much easier conversation and allows us to continue to build that order book. So I would say those are the 3 main areas, as I mentioned in my presentation, with a little more detail here.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [32]
------------------------------
 Perfect. We'll go to Konark and then Seth here.

------------------------------
 Konark Gupta,  Macquarie Research - Analyst   [33]
------------------------------
 Konark Gupta from Macquarie Capital Markets. So a question for John, and then one for Alain maybe. So John, there was a footnote on most of the slides about IFRS 15. Just wanted to understand what was the impact of IFRS 15 on your revised 2018 and 2020 targets, if there's any? And then for Alain, just want to touch on the strategic options. I'm more thinking about Learjet, regional aircraft, aerostructures you touched upon and perhaps expanding collaboration with the Chinese rolling stock OEMs outside of China. So what kind of strategic opportunities do you see right now?

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [34]
------------------------------
 Maybe I'll just answer quickly on the IFRS question and then turn it to Alain. So the biggest impact of IFRS with respect to the Bombardier results is really about the timing of revenue recognition or inclusion of profitability from options on the train business. So without getting into kind of an overly technical discussion here, when you have very probable exercise of options on the train business, they become part of the EAC, the estimate at completion, and we do percentage of completion at trains. And as a result, those options typically come at higher margins because you've completed the entire development of the training and you're just producing additional units, so they have better margins. Fundamentally, the impact on '18 and '20 is, I'd say, for all intents and purposes, are virtually seamless or doesn't have an impact. And the reason is that IFRS allows you -- or previously allowed -- older IFRS allowed the revenue recognition principle -- allowed you to recognize the margin in the contract EAC when it became probable in the past. In the future, that can only be done when enforceable because it's signed and firm. So while you may have some projects which you now will recognize at signature, you will not be able to recognize those that have become probable. So it's a neutralizing effect. It's a one-time into equity and retained earnings, and then you're done. As you go forward, one offsets the other, and all it is, is a one-time timing adjustment for what's in the retained earnings. So as a result, there's real no -- you can't be that precise about forecasting those kinds of things, 12 and 24, 36 months out with respect to timing of signature. Our numbers are basically seamless for IFRS impacts.

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [35]
------------------------------
 Obviously, the focus, short term, is the closing the deal with Airbus. I mean, that was the most important thing to do. We've derisked the program, ensured long-term survival of the program. So this is -- it's a program that it is there now to stay. There's no more question about that. Fred explained very clearly what are the drivers of that value creation. We've been saying in a very conservative way that we're more than doubling the value of the business case by teaming up with Airbus. And I think that there's way more upside potential than that in the long run. So right now, focus is this partnership with Airbus. That's what we want to do. We will remain open to any other strategic alliance and partnership moving forward in all of our businesses whether it's train or aerospace. The good news is we have no time pressure right now to do anything quick. So we have time to think, we have time to reflect on where we are and where we want to go.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [36]
------------------------------
 All right. Next question here on the left.

------------------------------
 Seth Michael Seifman,  JP Morgan Chase & Co, Research Division - Senior Equity Research Analyst   [37]
------------------------------
 So 2 questions. First, and I know this is a bit far out ahead of the stuff that we're talking about today. But at this meeting last year, we started to talk a little bit and see some questions about the next program. And I think in your guidance, you have a placeholder in 2020 for about $750 million of CapEx. So that's probably $600 million to $650 million in the Aerospace business and there's probably some level of maintenance CapEx there, and so it probably leaves room to have one big investment program. Maybe Alain, you could talk about how your thinking has evolved in the past year about what that might be. And the second question, either for John or for David, is if you could talk about -- I think in the plan, the Global 7000 is supposed to be profitable in 2020. And maybe if you could talk a little bit about that level of profitability relative to your 8% to 10% target and then relative to where you expect the Global 7000 to ultimately come out in terms of a return on sales.

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [38]
------------------------------
 So let me take a stab at this, and then I'd like to get the 2nd part of your question, if you can, just if you can repeat it for me. But the -- what we saw is basically it's a business that can invest and continue to invest in technology. And as you said, if you kind of break it down, whether that's going to be plus, minus $50 million or $100 million in the train side, we'll see. But largely, they absorb their development through their projects, so that's why the CapEx piece of it is largely Aerospace. Although they continue to develop technology in trains. I'd say that for us, that level of $600 million, $700 million allows us to run one big program at a time. I'd say that for now, really, we're focused on this part of the cycle. When you look at the overall market and business context, there's no burning need to go out and launch a program. We have a great portfolio of products in business jet. We do watch competition. We have our own entry to service now with the 7000. That will allow also the 8000 as kind of a follow-on investment opportunity as we watch the market and potential response to that. So beyond that, really, it's going to be a matter of competitive response and/or protecting segments for which we have leadership positions. And we always think and talk about that, but I don't think that, that's something that for the next year or 2 is going to be the focus area. And then I think the second part of your question, unless you -- oh, wanted to add something?

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [39]
------------------------------
 No. I'd just say it's not about sort of investing in a program. John said that it's about protecting our position. I mean, we have great franchises, and we want to make sure that we retain leadership position, but we want to be very disciplined when it comes to capital allocation. So it might be investing in a new program, but it might be doing something else. So I mean, we're looking at all options, and we want, again, to maximize shareholder value moving forward.

------------------------------
 Seth Michael Seifman,  JP Morgan Chase & Co, Research Division - Senior Equity Research Analyst   [40]
------------------------------
 And then you talked about Global 7000 being profitable in 2020. That level of profitability, maybe relative to the 8% to 10% segment target and relative to where you think Global 7000 could ultimately get to in terms of return on sales?

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [41]
------------------------------
 Sure. So I won't specifically talk about the Global 7000 profitability because that's obviously sensitive and competitive. But it's a premium aircraft, and I expect that in the medium to longer term that's going to be a premium margin product. It offers tremendous value and capability to customers, and as a result, I think it will complete very well with, frankly, in its own segment. When you look at our 2020 objectives, 8% to 10%, you're really just seeing the very beginning of the volume. And for all intents and purposes, I think you'd see dilution in '19 relative to that program as it hits its first set of real significant deliveries and then 2020 start to mature. But when you look at '21, '22, '23, there's a convergence of things that are happening. One, you've got aftermarket and the power of the work that David is doing in terms of generating those higher-margin businesses and capturing more of our fleet. Two, you have the continued learn out of the 7000 and its ability to generate those large business jet margins that I think we can still improve past '21 and '22. And then three, we continue, as Jim showed you, the ability to drive a Lean operation that allows, frankly, at that point in time the scale of a top line to leverage the cost structure that supports that business. And so without getting overly specific, is there possibility to have solid double-digit margins and grow from there? I think absolutely there is, and frankly, that's really what we're driving to.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [42]
------------------------------
 Next question here in front.

------------------------------
 Walter Noel Spracklin,  RBC Capital Markets, LLC, Research Division - Analyst   [43]
------------------------------
 Yes. It's Walter Spracklin from RBC Capital Markets. I guess this is for Alain. I know, when we went back -- going back to 2015, when you provided your guidance, it was really about -- and we looked at the investment thesis on Bombardier, it was really about derisking the company and much of the upside that we would see would come from your successful execution of your plan out to 2020. I think going forward now, as we come closer to 2020, it'll -- and you'll probably be happy about this, moving onto the next stage or post 2020, will it be more of an earnings story? I want to focus then my question on the Commercial Aerospace division. If I look at the C Series and I think about the capital investment that you've made in that program, one of the things is the early versions that come out of that type of capital investment might be lower margin, but you have some versions that come afterwards that tend to have a bit better economics. By going with Airbus and given their A320 family, do you sacrifice that platform scalability of the C Series? Will we ever see a CS500 now that it's kind of in those hands? And/or are we really going to be looking at the CS100, 300 as your real models in that division post 2020?

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [44]
------------------------------
 I think it's tough to forecast or to predict what Airbus and us will do in the out-years. I mean, there's a great strategic fit right now between the C Series, the 100, 300 and the 320, 321. So is there like room or can there be a product strategic fit for like a bigger C Series? I think that time will tell. On a standalone basis, it would have been a real challenge to launch a CS500. So I mean, we're -- in terms of value creation, I mean, it's clear that we're creating a lot more value in having the CS100 and 300 as part of the 320 family for the reason that Fred mentioned. Not only we've derisked the program, but we're taking advantage of Airbus' scale, scale on sales marketing, scale on procurement, purchasing power and scale in the aftermarket. So for me, what we've done here is we are basically making sure that this program is actually going to generate real value for us, for Bombardier, for Airbus and for customers.

------------------------------
 Walter Noel Spracklin,  RBC Capital Markets, LLC, Research Division - Analyst   [45]
------------------------------
 And then I guess the second part of my question then goes back to the RJ issue, and I -- 35 aircraft per year, if we're going to not see much movement beyond that level of deliveries, is that really a viable business for you? And what could be your strategy if we are kind of stuck in that 35, 35 to 50 aircraft per year?

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [46]
------------------------------
 Well, I think that Fred can take this one on. I would just say, right now, the focus is on selling more CRJ. We'd like to keep this line going. But Fred?

------------------------------
 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [47]
------------------------------
 Yes, I talked about it earlier. I think the replacement cycle is real and I think it's coming and we're well positioned. I think in terms of cycle times and staying nimble, the CRJ production line, in particular, is well positioned to be able to flex up and down. I mean, that production line has gone through an evolution over the last 25 years, probably one of the more efficient production lines out there. So I think we have the ability to flex that according to the demand that we see. And on a go-forward basis, I think we do see opportunity, more opportunity than what's reflected in next year's deliveries, as an example. So that's the challenge for me and the sales team to go out and really capitalize on those market opportunities. Again, the timing of that, particularly in the North American market where it took so many RJs in a short period of time, that replacement cycle is dependent, as I said earlier, on fuel, as an example, and also on the age of the aircraft. The age of the aircraft is getting there. And I think we, as I've mentioned, are well positioned with the CRJ. I talked about canvassing the customers. They told us exactly what they wanted in that airplane, and it was primarily to refresh and kind of reengineer a cabin that could achieve more stowage space for passengers. That's important in a smaller airplane. In addition to that, there -- as we look at the competitive landscape versus the CRJ, other entrants and what they're building don't meet those scope clause requirements. And when I talk to major airlines that have those scope clause limitations, it's not on their radar screen to relax those anytime soon. So as that replacement cycle comes out, as I think, we're well positioned.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [48]
------------------------------
 We'll go in front, over there.

------------------------------
 Unidentified Analyst,    [49]
------------------------------
 [Chase Hobert] with Liberty Mutual Surety. First, congrats on the solid execution of your turnaround plan past couple of years. It's been impressive. Keep up the good work. In terms of your 2020 guidance, we're looking at EBIT of $1.6 billion before special items. Just at a high level, when do you expect to achieve bottom line breakeven on a consolidated basis?

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [50]
------------------------------
 You mean from the net income point-of-view or the asset-driven?

------------------------------
 Unidentified Analyst,    [51]
------------------------------
 Yes. Net income, yes.

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [52]
------------------------------
 Yes. I think -- I mean, we're largely there. Right. I mean, 2018, we'll see a positive EPS and that's '17 is going to be touch and go here. We'll see, but I think we're there. I think you see turnaround, and turnaround is really upon us. Next year, we'll flip to breakeven. I expect EPS to be positive, which really indicates the net income side of the house. And then after that, it's continued strength from margin conversion, revenue growth, and we'll generate cash with that. So we're there.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [53]
------------------------------
 We'll go here in front.

------------------------------
 Unidentified Analyst,    [54]
------------------------------
 Just quickly, probably for John or maybe Fred. On the C Series free cash flow bridge, does that assume building the Alabama plant? And if you don't, is that up side? I think you talked about $300 million to build that.

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [55]
------------------------------
 Yes. So if it's okay, Fred, I'll take it quickly.

------------------------------
 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [56]
------------------------------
 Sure.

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [57]
------------------------------
 So we've built our plant here inclusive of the need for a start-up of a U.S. facility. And that's primarily just physical location, but also some equipment, tooling and then the ramp-up capital for the working capital of the second line. And I mean, I'd leave it at that, that we're basically making those plans within our cash flow requirements. In terms of upside, I think, Fred, at this point in time, we expect big success in the U.S., to be frank. And we think that this aircraft is going to have enough demand that will support anything we need to do, and as a result, it will be a benefit to the program.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [58]
------------------------------
 We'll go to Chris, second row.

------------------------------
 Christopher Allan Murray,  AltaCorp Capital Inc., Research Division - MD of Institutional Equity Research & Senior Analyst   [59]
------------------------------
 Chris Murray, AltaCorp Capital. Maybe for Alain, my first question. Thinking about what are the key milestones and risk factors with the Airbus agreement as we move into the next year? We have a decision probably coming next week again on tariffs. You just addressed sort of the question around a new facility and a factory there. Can you just help us understand what could either delay this or get in the way of getting this agreement over the line in probably the back half of '18?

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [60]
------------------------------
 You mean the agreement with Airbus?

------------------------------
 Christopher Allan Murray,  AltaCorp Capital Inc., Research Division - MD of Institutional Equity Research & Senior Analyst   [61]
------------------------------
 The agreement with Airbus.

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [62]
------------------------------
 I mean, the agreement with Airbus and the Boeing petition are net-linked. So I mean, that's -- it's very clear. Right now, the really -- the key milestone in closing the deal with Airbus is really the antitrust approval process, which is ongoing right now and progressing extremely well. So I think that with the level of risk of not closing the deal or the likelihood of closing the deal is very high right now, so I think that we feel very confident at this stage that we will close the deal. We said somewhere like mid-2018, maybe towards the second half of 2018. It looks like we're tracking very well right now and we can do a little bit better than that. So that's the Airbus piece of your question. As for a U.S. final assembly line, we've made it very clear that we're committed to doing this. It is our way for us to secure the U.S. market for the C Series. This is very critical for the program to do so. And the good news is Airbus is bringing great knowledge, capability, facility, people, experienced people, that we will be able to benefit from to have a quicker ramp up in the U.S. And that's what we're doing right now also.

------------------------------
 Christopher Allan Murray,  AltaCorp Capital Inc., Research Division - MD of Institutional Equity Research & Senior Analyst   [63]
------------------------------
 Okay. Great. And then if I may one further one. Maybe, David, you want to take this one. So the Global 7000 feels like it's maturing well. The AIS seems within range. Can you talk a little bit about your thoughts around the Global 8000? How that mix might play into maybe the 2019, 2020, both the capital requirements and development and how that mix we should think about in terms of production will evolve.

------------------------------
 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [64]
------------------------------
 Yes. One thing we said is that the main focus right now is all 7000 entering the service. And what we said is once we have clear line of sight in our production ramp-up and it's the same production, we'll determine the schedule for the Global 8000. One thing to think of is that Global 8000 is a very, very small percentage of our backlog. So hence, that's why we're very focused on delivering to our early customers the Global 7000. So what we'll do is, probably sometime after entering the service, determine the right schedule for the 8000. We're also going to look very closely at the performance of the 7000 in determination with the 8000 and understand the differences between the 2 also.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [65]
------------------------------
 All right. Thanks. We'll go here on the left.

------------------------------
 Stephen Trent,  Citigroup Inc, Research Division - Director   [66]
------------------------------
 Steve Trent from Citi. Two questions for you. The first is just digging a little bit into the competitive environment for biz jets. We noticed that Dassault happened to mothball a program. So when you think about the rest of the space out there, do you see any other competitive programs that are at least somewhat at risk? Or do you think the current suite of competitors is who you're going to have over the next few years?

------------------------------
 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [67]
------------------------------
 Yes, I think that's right. I think if you look at kind of the current landscape, the midsize market is a very competitive space. You saw one of the competition actually delay entering the service to their new entrant sometime next year. But the 350, we think, is very well positioned to continue to maintain that space. The 650 and the 2000 LX are just kind of the 2 main competitors in that wide-body midsize -- upper midsize class. The upper market, you've seen delays from the competition from both of them on their entrants into next year. So we feel very good about where we're at. The 7000 is going to compete in the space by itself. The Global has been refreshed. We think it's going to be -- it continues to be a very high value proposition product and a very competitive product in its class. And then, like I said, the Challengers are category-killing products themselves. So we feel very good and actually the competition is kind of self-manifesting their delays, which help us because we're executing.

------------------------------
 Stephen Trent,  Citigroup Inc, Research Division - Director   [68]
------------------------------
 Great. Appreciate that. And just one more very quick question when I think about the C Series going forward. Certainly after 2018, you'll certainly still going to have skin in the game. So when we think about this from an accounting perspective, any kind of early thoughts with respect to whether you'll simply present your financials in an equity method basis when we think about the C Series. Or is there some chance you might present them under a proportional consolidation?

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [69]
------------------------------
 No, I think that the IFRS requires an equity method. So it will simply be equity pick-up and you won't see any of the other balance sheet items. You'll just see simply the equity pick-up.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [70]
------------------------------
 Let's go to Benoit here in front.

------------------------------
 Benoit Poirier,  Desjardins Securities Inc., Research Division - VP and Industrials, Transportation, Aerospace, Industrial Products & Special Situation Analyst   [71]
------------------------------
 Yes. Benoit Poirier from Desjardins. Question is for David with respect to the business jet, 3 sub-questions. The first one, when we look at the Challenger 350, it's been a huge success since its entry into service in 2004. Obviously, it's becoming more crowded with new entrants. So could you talk a little bit about where you see the competitiveness of the Challenger 350 going forward and if there's anything to do on this side? Second, given that you're ramping up the production of new Global without being certified yet, how do you manage the risk, given that, that's not been certified? And for the Dassault 5X, given that they received 12 cancellations and they are having some issues, have you been able to benefit from Dassault's issues?

------------------------------
 David M. Coleal,  Bombardier Inc. - President of Business Aircraft   [72]
------------------------------
 Yes. So on the 350 space, again, the 350 certified new interior engine upgrade as well as avionics suite, I think what we're seeing there is that the competition is more -- it's about minor feature sets. So the cabin -- the thing about the 350 is it's so great. It's full-pack, full-range, full-fuel. So -- and it's a high utility aircraft, great reliability. It looks great on the ramp and customers love it because of the flat floor, wide cabin. So what we're doing is making sure that just as the feature sets come out for more advanced avionics or other attributes, we're making sure that we have product road maps to make sure we stay competitive with the competition. That's where we see the main attributes. All the -- if you think everyone is making a me-too aircraft and they're just trying to one-up on the feature set. But it's got great operating cost, great capabilities, so we expect to be very competitive, even at the 2020 time frame. Second question, I think, was on the Global 7000 ramp up. So it's not unusual to start production with certification imminent next year. We have a plan of how we're going to approach that with our -- with Transport Canada and FAA. So we will receive certification next year, which will allow us to commence delivery towards the end of the year. So that's all part of our plan. It's being simultaneously worked with the authorities. We currently reduce risk every time we fly, and we feel very good about the certification milestone that we have for next year. So I think that's already part of the plan and baked into how we're executing our program. And the third one was Dassault. Yes. So I think it's a little early. I mean, they had some cancellations obviously. The great thing about Bombardier is we have an embedded sales team around the world, and we won campaigns in regions where some of the competitions, that's the kind of their home base. So I think with this delay now going from 2020 to 2022, the customers are going to start looking at alternatives, right. Because what we see is shorter cycle times and purchase habits with our customers, so they don't necessarily want to wait. And if they see a product, whether it's a 7000 or the Global 5000/6000 with the new interior and they were looking at a 2020 time frame, they will look -- certainly look at other substitutions. So any time there's a delay in the program, it actually benefits people who have product that available that can substitute it immediately.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [73]
------------------------------
 We'll go actually a couple more minutes. We have a question here, down over to Rob.

------------------------------
 Robin Wijaya,    [74]
------------------------------
 Robin Wijaya from Standard Chartered here. Quick question to Fred. In terms of update on the C Series production, we are seeing a fewer than expected -- fewer than scheduled delivery this year, primarily due to a Pratt & Whitney engine supply issue. Can you please provide the latest update on that? And how confident are you to achieve 40 deliveries next year?

------------------------------
 Frederick S. Cromer,  Bombardier Inc. - President of Commercial Aircraft   [75]
------------------------------
 Yes. So we were pretty open about some of the engine issues that we started experiencing on the C Series that were pretty well known on the neo. The good news about that was that Pratt already had a jump on a fix for that, and so we feel very confident about where Pratt is and being able to deliver that so that we feel very good about our production next year. So I think we have all the confidence in the world that Pratt can achieve that, and we're obviously staying very close to them to make sure that we can deliver the number of aircraft with the Pratt engines, as specified for 2018.

------------------------------
 Robin Wijaya,    [76]
------------------------------
 And can I have one more question to Laurent: In terms of special items charts under Transportation deficiency, how much more do you anticipate going forward until 2020?

------------------------------
 Laurent René Octave Troger,  Bombardier Inc. - President of Transportation   [77]
------------------------------
 Well, I think we -- the sale has been already completed, so I think most of it has been already provisioned. So we don't expect major stuff, except normal transformation initiative, but nothing significant.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [78]
------------------------------
 We'll go the last question there with Ron.

------------------------------
 Ronald Jay Epstein,  BofA Merrill Lynch, Research Division - Industry Analyst   [79]
------------------------------
 I have a question for Michael. Obviously, you just won the Airbus work the other day. I think it's interesting that, that happened alongside the other deal and I think there might be opportunity for more work. You talked about, I think, a little over $2 billion in sales in 2020, but what is the capacity in Belfast if you went to full capacity long term? How much revenue can you run through that facility if you were to continue winning non-Bombardier business?

------------------------------
 Michael J. Ryan,  Bombardier Inc. - President of Aerostructures & Engineering Services   [80]
------------------------------
 Well, the Airbus work that we did when -- was 1 year to 18 months in jet station. It was a bid -- it was a competitive bid with some of the usual suspects you would recognize in terms of our peers in the Aerostructures market. So it was coming out. When it did come out in time in terms perhaps with unusual, but it was very clear. We have been working on it actually for a long time before we started working on the current Airbus tail from a C Series point of view. When you look at what we can do in terms of growth, and it's not just Belfast, the Aerostructures business that we have in terms of, let's say, capacity is about 40% Belfast and the other 60% is between our [Celeron] factory in Morocco and Mexico. But if you take Belfast as a yardstick, let's say, and I take just employment as a measure...

------------------------------
 Ronald Jay Epstein,  BofA Merrill Lynch, Research Division - Industry Analyst   [81]
------------------------------
 Change the whole thing. In other words, what's your full capacity with the assets you have now?

------------------------------
 Michael J. Ryan,  Bombardier Inc. - President of Aerostructures & Engineering Services   [82]
------------------------------
 We are probably running at 60% of our full capacity.

------------------------------
 John Di Bert,  Bombardier Inc. - CFO and SVP   [83]
------------------------------
 At 1.7 billion.

------------------------------
 Michael J. Ryan,  Bombardier Inc. - President of Aerostructures & Engineering Services   [84]
------------------------------
 At 1.7 billion, yes. So there's opportunity, there's capacity, there's capability and there's a desire to do more for sure.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [85]
------------------------------
 All right. So maybe I'll let Alain give some final remarks.

------------------------------
 Alain M. Bellemare,  Bombardier Inc. - CEO, President and Director   [86]
------------------------------
 Well, I just want to say, I think that as you can see, we've come a long way. I mean, we are in a much better place today than we were in 2015, and the future is bright. We understand that we have some more work to do, and we will continue to drive the business with focus, with discipline, with passion. We want to make sure that we keep trading value for shareholder. The 2020 goals are exciting, and that's what we're focused on right now.

 I also want to take this opportunity to thank the team. I think that you don't achieve this type of results without having like a very good team. We have an amazing team, and together, we work well. And I think that this is one of the reason why we are where we are today. And the last thing that I want to say is, I want to thank you all for following us and being there today in such a large number.

 So thank you, and thank you for your confidence. Thanks.

------------------------------
 Patrick Ghoche,  Bombardier Inc. - VP of IR   [87]
------------------------------
 Okay. So thank you, everyone. We'll have just a cocktail outside. So you're welcome to join. The management team will be there to answer, I guess, any clarification or any questions. Thank you very much.




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