• Targets 2018 revenue growth of approximately $1B over 2017 guidance
• Anticipates EBIT before special items(1) to grow to $800M-$900M in 2018
• Aims to improve free cash flow(1) by approximately $1.0B and to reach free cash flow breakeven in 2018, plus or minus $150M
• Turnaround plan on track with clear path to achieve 2020 financial goals
• Over next three years, objective to increase revenues by $4.0B and for EBITDA before special items(1) and EBIT before special items to more than double
• 2020 free cash flow objective in the range of $750M to $1.0B
• All amounts in this press release are in U.S. dollars unless otherwise indicated.

Bombardier (TSX: BBD.B) today released its 2018 guidance and confirmed that its five-year turnaround plan remains on track. The Company also affirmed its 2017 guidance, as revised with the announcement of its third quarter 2017 results.

“As we approach the half-way point of our five-year turnaround plan, we continue to meet our commitments and build a strong foundation for generating sustainable profit growth,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We remain very much on track to achieve our 2017 guidance, our 2018 free cash flow goal, and see a clear path to deliver on our 2020 objectives.”

For 2018, Bombardier is targeting revenues in the range of $17.0 billion to $17.5 billion,(2) which represents a year-over-year increase of approximately $1.0 billion over 2017 guidance, at the mid-point of the range. This growth is expected to be driven by the ramp-up of key projects at Bombardier Transportation and higher C Series aircraft deliveries.

With the Company’s transformation efforts driving stronger performance across the portfolio, EBITDA before special items for 2018 is anticipated to be in the range of $1.15 billion to $1.25 billion.(2) For the same year, EBIT before special items is anticipated to be between $800 million and $900 million,(2) representing an improvement of approximately 20% over 2017 guidance, at the mid-point of the range, assuming the adoption of IFRS 15 standards.(3)

Bombardier is targeting to achieve free cash flow breakeven in 2018, plus or minus $150 million,(2) mainly driven by improving working capital investments and lower development costs as the Company’s heavy investment cycle comes to an end with the Global 7000 expected to enter service in the second half of 2018. Breakeven free cash flow represents an improvement of approximately $1.0 billion over Bombardier’s 2017 guidance.

“There is tremendous value in the Bombardier portfolio and we are confident that we have the right strategy and team to fully unleash this value for our customers and shareholders,” Mr. Bellemare continued. As we close out 2017, we remain focused on execution and driving transformation across the portfolio to achieve our 2020 objectives.”

Over the next three years, the Company’s objective is to grow revenues by $4.0 billion, which represents a 7% compound annual growth rate. Over the same period, Bombardier’s objective is to more than double EBITDA before special items to more than $2.25 billion, and to achieve EBIT before special items in excess of 8%, or $1.6 billion. The Company also aims to deliver free cash flow of $750 million to $1.0 billion by 2020.

The Company will provide an update on its turnaround plan and discuss its 2018 guidance and 2020 objectives at its annual Investor Conference later this afternoon. A live webcast of Bombardier’s Investor Day, along with the corresponding presentation, will be available on the Company’s website at www.ir.bombardier.com. The webcast will begin at 3:00 pm EST on Thursday, December 14, 2017 and will be available on the website afterwards.

Following the closing of its C Series partnership with Airbus, Bombardier will deconsolidate the C Series program. While 2018 guidance assumes the continued consolidation by the Company of the C Series program for the entire year, 2020 objectives reflect the deconsolidation of the C Series program. Should the closing of the C Series partnership with Airbus occur before the end of 2018, the resulting deconsolidation will have an impact on the Company’s reported results.

It should also be noted that Bombardier’s 2018 guidance and 2020 objectives are both based on the adoption of IFRS 15 standards. Under IFRS 15, the Company’s 2017 EBIT guidance before special items would increase from at least $630 million to at least $700 million.