© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.Laurent Troger

President

Market Analysis and

Company Strategy

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Bombardier Transportation business overview

We are transforming for profitable growth in an attractive rail market

2

1. Resilient market with steady

growth

2. Leading position in the market

3. Transformation strategy to

further grow profitability

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Solid growth for rail industry

Strong underlying sector trends

3

▪ Crisis resilient capital goods

market globally

▪ Favorable megatrends

– Population growth

– Urbanization

– Environmental awareness

▪ Public transport investments to grow

across geographies

Target market at €84B

3,6%

(2,1)%

2,3%

Total rail market (€B)Global GDP growth (%)

Forecast

€150B€146B

€37B

€123B

€159B

€176B

Total annual average rail market1 vs. global GDP growth

€B, 2005-2019

€159B

Key facts

1. Source: UNIFE 2014 World Rail Market Study; World Bank Data; Bombardier Transportation analysis

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Highest growth in services and systems

Rolling stock to remain largest segment and Europe largest region

4

Annual BT target market1

€B, 3-year average, 2011-2019

Source: BT management calculation based on UNIFE World Rail Market Study published in 2014

1. Based on total rail market as defined by UNIFE, excluding markets non-accessible for BT which are associated with contracts that are awarded to local players without

open-bid competition, and segments in which BT does not actively compete in, including the infrastructure segment, shunter segment and certain freight wagon services

2. RoW includes South America, Central America, Africa, the Middle East and CIS

3. North American region comprises United States, Canada and Mexico

+2.7

+0.7

+4.3

+3.3

+5.0

+1.9 +1.8

Total CAGR 2011-13 –2017E-19E

%

Services

Rolling

stock

Signalling &

Systems

Europe

Asia

Pacific

North

America3

RoW2

+3.4

Total CAGR 2011-13 –2017E-19E

%

+2.7

By product segment By geographical region

34 33 38

25 27

30

13 15

167275

84

2011–13 2014-16E 2017E–19E

28 29 31

14 1619

1314

1617

16

187275

84

2011–13 2014-16E 2017E–19E

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Strengthened financial position

Agreement with La Caisse de dépôt et placement du Québec

5

Bombardier Inc.

Bombardier Transportation

Impact on Bombardier TransportationCaisse de dépôt

et placement du

Québec

30%70%

Transaction strengthens Bombardier’s

overall financial position and provides

flexibility in liquidity

Transaction very well received from

customers and other stakeholders

The investment includes performance

incentives for Bombardier Transportation to

further drive improvement in execution

No changes to key operational procedures

Key facts

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Extended global presence

We secured orders in all segments and regions

61. Bombardier Sifang Transportation, a Chinese entity in which Bombardier holds a 50 % interest, has been awarded a contract

with China Railway Corp. (CRC) to supply 15 CRH380D very high-speed trains valued at $381 million

80 ELECTROSTAR

Class 387 vehicles for

Porterbrook

€150 M (2015)

10 years maintenance on

74 ELECTROSTAR

trains €196 M (2015)

Option for 19 SPACIUM

trains for SNCF

€160 M (2015)

Signalling for high-speed

rail lines for ADIF

€164 M (2015)3

INNOVIA APM for

Chicago O’Hare

International Airport

€161 M (2015)

62 FLEXITY trams for

the Rhineland region

€127 M (2015)

15 CRH380D trains for

China Railways

€339 M (2015)1

156 FLEXITY trams

for Vienna

€431 M (2015)

180 AVENTRA cars and

35 years of maintenance

for Transport for London

€505 M (2015)

62 TRAXX locomotives

for Israel Railways

€230 M (2015)

30 years maintenance

on FLEXITY trams for

Toronto

€282 M (2015)

162 MOVIA cars for

India’s Delhi Metro

€204 M (2015)2

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Confirmed market leadership

We have the broadest portfolio of rail solutions globally

7

1.Based on Bombardier Transportation management's tracking of published Rolling Stock orders in 2010-14 outside of China;

excluding Services, Systems and Signalling, and Diesel locomotives outside Europe

2.North America comprises United States, Canada and Mexico

In Europe,

Bombardier

Transportation is the

market leader in all

major rolling stock

segments

Market leader for

metros in North

America, the biggest

segment of the region

Strong in India and

leader in the fast

growing Australian

market

Highest global market

share, making

Bombardier

Transportation the

industry leader outside of

China

Queensland Rail

New Generation

R179 New YorkV300ZEFIROTRAXX South Africa

#2

#1 Bombardier

~32%

#2 #2#3

Bombardier

~38%

#3

Bombardier

~18%

OthersOthers

OthersCompetitor

#2

#3

Bombardier

~ 22%Others

Global Rolling Stock market1 Europe1 North America 1,2 Asia-Pacific excl. China1

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Strong backlog

We aim to continue outgrowing the market over the next 5 years

8

2012 2013 2014 2015 2016 2017 2018 2019 2020

Revenues from backlog Revenues from new contracts

€9.5B+ target ($10B+)

Revenue evolution target [€]

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Revenue conversion

Company growth is supported by strong backlog and future bid pipeline

9

FLEXITY

LRV for

Vienna

TRAXX

locomotives

platform

Strong bid pipeline with large

projects in all segments and

geographies

Differentiation factors and

total value proposition allow

Bombardier Transportation to

win with value-based pricing

MOVIA C30

Metro for

Stockholm

Examples of value-based ordersKey facts

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

55%

25%

20%1

Rolling Stock2

71%

14%

15%1

61%

29%

10%1

65%

18%

17%1

Business model enhancements

Better revenue mix to drive profitability

10

2014

Q3 2015 backlog at $30B

1. Excluding the Rolling Stock portion of Systems orders manufactured by the Rolling Stock division.

Signalling order backlog traditionally low due to short cycle of the business

2. Rolling Stock includes Bogies and Propulsion.

2010

Signalling & Systems

Services

2020 target

… and the future is already visible in backlog

Increasing Services revenue contribution today…

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Company transformation

Organizational framework to improve competitiveness

11

Head of Region

Critical A Projects / bids

A Projects / bids

Other projects

Head of Project Management

Portfolio Manager

Strategic panel suppliers

Other panel suppliers

Non-panel

suppliers

BT President

Rolling Stock Regions

Global Businesses

BT Core: Value Chain Functions

Group Headquarters (Governance, Finance, Human Resources,

Information Systems)

Increasing

standardization

Centralizing global

supply chain

Empowering project

management

Selective bidding

process

Stronger organization and

key account management

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

Innovation is a key differentiator

12

1.Total engineering cost including project development and R&D expenditure

2.RoW comprises South America, Central America, Africa, the Middle East and CIS

Self-funded R&D in percentage of sales

2013 2014 2015 2016 2016+

Significant engineering innovation investments of about

€2.8bn1 over past 3 years

Around 11.5m engineering hours contributed by

Bombardier Transportation engineers in 2014 alone

More than 8,000 employees in innovation and engineering

across 80 countries

Majority of engineering and design of critical components

for trains performed in Germany or at other European

sites to protect IP

Further IP protection, e.g. through patent registrations and

legal structuring of JVs

Engineers by region (2014)

72%

16%

9% 3%

Americas

Europe Asia-Pacific

RoW2

Increased R&D investments

Capabilities and capacities

© B

om

bard

ier

Inc. or

its s

ubsid

iarie

s. A

ll rig

hts

reserv

ed.

In summary

A clear strategy to remain market leader

13

Focus on company transformation to increase competitiveness

Secure key strategic orders to maintain market leadership

Enhancing the business model for profitable growth and execution

Stay in the lead in a consolidating industry

Current priorities