Bombardier Announces Financial Results for the Fourth Quarter and the Fiscal Year Ended December 31, 2012

MONTRÉAL, QUÉBEC--(Marketwire - Feb. 21, 2013) - (TSX:BBD.A)(TSX:BBD.B)

(All amounts in this press release are in U.S. dollars unless otherwise indicated. This press release contains both IFRS and non-GAAP measures, with certain measures also presented on a pro forma basis to reflect the impact of the January 2013 debt issuance. Non-GAAP measures are defined and reconciled to the most comparable IFRS measures in our MD&A. See Caution regarding Non-GAAP measures at the end of this press release.)

The fourth quarter and fiscal year ended December 31, 2011 comprise two and 11 months of Bombardier Aerospace results, and three and 12 months of Bombardier Transportation results.

• Revenues of $16.8 billion, compared to $18.3 billion last fiscal year
• EBIT before special items ⁽¹⁾ of $835 million, or 5.0% of revenues, compared to $1.2 billion, or 6.6%, last fiscal year
• Adjusted net income ⁽¹⁾ of $692 million, compared to $865 million last fiscal year
• Adjusted earnings per share ⁽¹⁾ of $0.38, compared to $0.48 last fiscal year
• Free cash flow usage ⁽¹⁾ of $741 million, compared to a usage of $1.2 billion last fiscal year
• Available short-term capital resources of $4.3 billion including cash and cash equivalents of $2.9 billion as at December 31, 2012, compared to $4.1 billion and $3.4 billion respectively, as at December 31, 2011; $6.3 billion as at December 31, 2012 on a pro forma basis giving effect to the January 2013 debt issuance
• Record backlog in both groups for a consolidated backlog of $66.6 billion, compared to $55.8 billion as at December 31, 2011

(1)	See Caution regarding Non-GAAP measures at the end of this press release.

Bombardier today reported its financial results for the fourth quarter and the year ended December 31, 2012. Revenues totalled $4.8 billion for the fourth quarter ended December 31, 2012, compared to $4.3 billion for the corresponding period last fiscal year. For the year, revenues totalled $16.8 billion, compared to $18.3 billion for the last fiscal year.

For the fourth quarter ended December 31, 2012, earnings before financing expense, financing income and income taxes (EBIT) before special items totalled $175 million, or 3.7% of revenues, compared to $293 million, or 6.8%, for the corresponding period the previous year. For the year, EBIT before special items was $835 million, or 5.0% of revenues, compared to $1.2 billion, or 6.6%, last fiscal year. For the fourth quarter ended December 31, 2012, EBIT was $12 million, or 0.3% of revenues, compared to $293 million, or 6.8%, for the corresponding period the previous year. For the year, EBIT amounted to $695 million or 4.1% of revenues, versus $1.2 billion or 6.6% last fiscal year.

On an adjusted basis, net income amounted to $188 million, or adjusted earnings per share (EPS) of $0.10, for the fourth quarter ended December 31, 2012, compared to $227 million, or adjusted EPS of $0.13, for the corresponding period the previous year. Adjusted net income for the year ended December 31, 2012 amounted to $692 million, compared to $865 million for the last fiscal year, resulting in an adjusted EPS of $0.38, compared to an adjusted EPS of $0.48 last fiscal year. Net income amounted to $14 million, or diluted EPS of nil, for the fourth quarter ended December 31, 2012, compared to $214 million, or diluted EPS of $0.12, for the corresponding period the previous year. Net income for the year ended December 31, 2012 amounted to $598 million, compared to $837 million for the last fiscal year. For the year, diluted EPS was $0.32, compared to diluted EPS of $0.47 last fiscal year.

For the three-month period ended December 31, 2012, free cash flow (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totalled $850 million, compared to $590 million for the corresponding period the previous year. Free cash flow usage totalled $741 million for the year ended December 31, 2012, compared to a free cash flow usage of $1.2 billion last fiscal year. Available short-term capital resources of $4.3 billion include cash and cash equivalents of $2.9 billion as at December 31, 2012, compared to $4.1 billion and $3.4 billion respectively as at December 31, 2011 ($6.3 billion on a pro forma basis as at December 31, 2012, giving effect to the debt issuance of January 2013). The overall backlog increased by $10.8 billion since the beginning of the year, reaching a record level of $66.6 billion as at December 31, 2012.

"Our results for 2012 are not reflective of our potential," said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. "After proving our resilience throughout the economic crisis, today, Bombardier is at a turning point. With our outstanding backlog of $66.6 billion, an increase of 19% over last year, we're forging ahead with breakthrough products and expanding our reach in pivotal growth markets."

"In Aerospace, we were in line with our delivery guidance and we've garnered an impressive 481 net orders bringing our backlog to a record level of $32.9 billion at the end of 2012. We're the clear leader in business aviation both in terms of revenues and deliveries, and in commercial aircraft, we had some significant orders for both jets and turboprops. Our development programs are making solid progress and the CSeries' first flight will take place by the end of June 2013."

"In Transportation, we won many important orders around the world in 2012, which brought our backlog to $33.7 billion, its highest level ever. Meanwhile, we took various measures to improve our cost structure and competitiveness. These inititatives are aimed at securing our leadership and improving our profitability."

"Our three main drivers will allow us to deliver long-term sustainable growth. The first driver is our portfolio of state-of-the-art products and services, which will be further fortified as several innovative platforms roll out of our facilities starting in 2014. The second is our expanding presence in key markets worldwide which brings us closer to our customer base, and finally, the strengthening of customer satisfaction through flawless execution on every order. These are exciting times at Bombardier and we're on the cusp of seeing significant revenue growth," concluded Mr. Beaudoin.

Bombardier Aerospace

Bombardier Aerospace's revenues amounted to $2.6 billion for the three-month period ended December 31, 2012, compared to $2.0 billion for the corresponding period last fiscal year. For the year, revenues totalled $8.6 billion, the same level as last fiscal year.

EBIT before special items totalled $382 million, or 4.4% of revenues, for the year ended December 31, 2012, compared to $502 million, or 5.8%, last fiscal year. For the fourth quarter ended December 31, 2012, EBIT totalled $89 million, or 3.4% of revenues, compared to $127 million, or 6.3%, for the corresponding last fiscal year. For the year, EBIT was $405 million, or 4.7% of revenues, compared to $502 million, or 5.8%, last fiscal year.

Free cash flow totalled $277 million for the fourth quarter ended December 31, 2012, compared to $110 million for the corresponding period last fiscal year. For the year ended December 31, 2012, free cash flow usage totalled $867 million compared to a free cash flow usage of $453 million for the last fiscal year.

A total of 233 aircraft were delivered during the year ended December 31, 2012, compared to 245 for the last fiscal year.

Bombardier Business Aircraft saw a remarkable level of order intake with 343 net orders compared to 191 for the last fiscal year. The business unit obtained two of its biggest orders in its history with a firm order from VistaJet for 56 Global aircraft, valued at $3.1 billion and a firm order from NetJets Inc. for 100 Challenger aircraft, valued at $2.6 billion, based on list prices. Even excluding these two orders and a significant order from NetJets Inc. in 2011, the business aircraft order intake still increased by 43%.

Bombardier Commercial Aircraft received 138 firm orders during the year, compared to 54 for the last fiscal year. Some of the largest orders received are from WestJet Airlines Ltd., which placed a firm order for 20 Q400 NextGen aircraft valued at $683 million, Delta Air Lines Inc. which purchased 40 CRJ900 NextGen aircraft valued at $1.9 billion and finally, airBaltic which placed a firm order for 10 CS300 aircraft valued at $764 million.The value of these firm orders are all based on list prices.

Bombardier Aerospace's backlog increased by 38% reaching $32.9 billion as at December 31, 2012, compared to $23.9 billion as at December 31, 2011.

The CSeries aircraft program development is progressing steadily: the assembly of the first Flight Test Vehicle (FTV1) in Mirabel, Québec, is in the advanced stages with all primary structures now assembled on the aircraft. Key components and systems are in place, namely the wing, landing gear, horizontal/vertical stabilizers, and most recently, the engines as we proceed with ongoing systems installations. In February 2013, the engine that will power the CSeries aircraft, Pratt and Whitney's PW1500 geared-turbofan engine, was awarded Transport Canada certification. These are critical steps in supporting the progressive transfer of FTV1 to the flight test program in the coming weeks. Progress has also been made in the build of the subsequent flight test vehicles which will join FTV1 in the flight test program.

Additionally, the build for the Complete Airframe Static Test (CAST) article, our aircraft destined for ground testing, was completed in December 2012 followed by the start of the first certification and Safety of Flight tests in February 2013. As well, the Complete Integrated Aircraft Systems Test Area (CIASTA/Aircraft 0) rig was recently upgraded to first flight configuration to allow for formal Safety of Flight testing. The validation process from all the on-the-ground integrated systems tests is progressing as expected.

The Learjet 85 aircraft program is making solid progress having achieved several key milestones. The first flight test aircraft is significantly advanced: the complete pressure fuselage, including the nose, aft fuselage and empennage have been joined, the landing gear has been installed and the wing is attached to the fuselage. However, while we have successfully dealt with several new technology challenges, the program's timeline has been impacted. Entry-into-service is now scheduled for summer 2014.

In 2013, the EBIT margin should be at a similar level as 2012. However, in 2014, Bombardier Aerospace expects to achieve an EBIT margin of approximately 6%, after an anticipated 2% dilutive impact from the entry-into-service of the CSeries aircraft.

The group expects cash flows from operating activities of approximately $1.4 billion in 2013, while the net additions to property, plant and equipment (PP&E) and intangible assets are expected to be approximately $2 billion. The level of net additions to PP&E and intangible assets is expected to decrease in 2014 by approximately $500 million and in 2015 by approximately another $500 million.

In 2013, Bombardier Aerospace expects to deliver approximately 190 business and 55 commercial aircraft.

Bombardier Transportation

Bombardier Transportation's revenues amounted to $2.2 billion for the three-month period ended December 31, 2012, compared to $2.3 billion for the same period last year. Revenues totalled $8.1 billion for the year ended December 31, 2012, compared to $9.8 billion for the last fiscal year.

For the fourth quarter ended December 31, 2012, EBIT before special items totalled $86 million, or 4.0% of revenues, compared to $166 million, or 7.2%, for the same quarter the previous year. For the year, EBIT before special items was $453 million, compared to $700 million last fiscal year, translating into an EBIT margin of 5.6% of revenues versus 7.2% last fiscal year. For the three-month period ended December 31, 2012, the loss before financing expenses, financing income and income taxes totalled $77 million, or 3.6% of revenues, compared to an EBIT of $166 million, or 7.2%, for the same quarter the previous year. EBIT for the year was $290 million, compared to $700 million last fiscal year, translating into an EBIT margin of 3.6% versus 7.2% last fiscal year.

Free cash flow totalled $673 million for the quarter ended December 31, 2012, compared to $564 million for the same period last fiscal year. Free cash flow amounted to $386 million for the year ended December 31, 2012, compared to a free cash flow usage of $424 million for the last fiscal year.

New orders reached $9.4 billion (book-to-bill ratio of 1.2), compared to $9.7 billion (book-to-bill ratio of 1.0) for the last fiscal year. The order backlog totalled a record $33.7 billion as at December 31, 2012, compared to $31.9 billion as at December 31, 2011.

The group continued to secure orders around the world and across all its product segments, as illustrated by the orders from Metrolinx/GO Transit in Toronto, for 10 years of operation and maintenance services, valued at $937 million and from San Francisco Bay Area Rapid Transit District (BART) for 410 metro cars, valued at $897 million. The City of Basel's Transport Authority, Switzerland, signed an agreement for 60 FLEXITY trams valued at $241 million, Abellio Rail NRW GmbH of Germany ordered 35 TALENT 2 Electrical Multiple Units (EMU) valued at $226 million, and Public Transport Victoria (PTV) of Australia placed an order for 40 VLocity Diesel Multiple Unit (DMU) cars valued at $216 million.

The group also announced measures to improve its competitiveness and cost structure. These include the closure of a plant in Aachen, Germany, and the reduction of direct and indirect personnel by approximately 1,200 employees worldwide, including Aachen. A restructuring charge of $119 million in connection with these planned measures was recorded in the fourth quarter of fiscal year 2012.

In 2013, revenues are expected to be higher than in 2012, with a percentage growth in the high single digits, excluding currency impacts, and the group should maintain its free cash flow generally in line with EBIT, although it may vary significantly from quarter to quarter. Bombardier Transportation extended its target date, to achieve an EBIT margin of 8% by 2014.

FINANCIAL HIGHLIGHTS
(In millions of U.S. dollars, except per share amounts, which are shown in dollars)
For the fourth quarters ended(1)					December 31, 2012									December 31, 2011
		BA			BT			Total			BA			BT			Total
Results of operations
Revenues	$	2,597		$	2,158		$	4,755		$	2,016		$	2,300		$	4,316
Cost of sales		2,254			1,875			4,129			1,717			1,884			3,601
Gross margin		343			283			626			299			416			715
SG&A		187			170			357			132			207			339
R&D		52			51			103			27			48			75
Share of income of associates		-			(18	)		(18	)		-			(1	)		(1	)
Other expense (income)		15			(6	)		9			13			(4	)		9
EBIT before special items (2)		89			86			175			127			166			293
Special items		-			163			163			-			-			-
EBIT	$	89		$	(77	)		12		$	127		$	166			293
Financing expense								144									156
Financing income								(111	)								(123	)
EBT								(21	)								260
Income taxes (recovery)								(35	)								46
Net income							$	14								$	214
EPS (basic and diluted; in dollars)							$	-								$	0.12
Supplemental information
EBIT before special items(2)	$	89		$	86		$	175		$	127		$	166		$	293
Amortization		75			34			109			39			36			75
EBITDA before special items(2)	$	164		$	120		$	284		$	166		$	202		$	368
On an adjusted basis
Adjusted net income(2)							$	188								$	227
Adjusted EPS (in dollars)(2)							$	0.10								$	0.13
Cash flows from operating activities	$	852		$	729					$	442		$	623
Net additions to PP&E and intangible assets		(575	)		(56	)					(332	)		(59	)
Segmented free cash flow(2)	$	277		$	673		$	950		$	110		$	564		$	674
Net income taxes and net interest paid								(100	)								(84	)
Free cash flow (2)							$	850								$	590

BA: Bombardier Aerospace; BT: Bombardier Transportation
(1)	Our fourth quarter ended December 31, 2011 comprises two months of BA's results and three months of BT's results.
(2)	Non-GAAP financial measure. Refer to the Non-GAAP financial measures and Consolidated results of operations sections in Overview of the Corporation's MD&A for definitions of these metrics. Refer also to the Consolidated results of operations and Liquidity and capital resources sections in Overview and Analysis of results sections in BA and BT of the Corporation's MD&A for reconciliations to most comparable IFRS measures.

(In millions of U.S. dollars, except per share amounts, which are shown in dollars)
For the fiscal years ended(1)					December 31, 2012									December 31, 2011
		BA			BT			Total			BA			BT			Total
Results of operations
Revenues	$	8,628		$	8,140		$	16,768		$	8,594		$	9,753		$	18,347
Cost of sales		7,418			6,851			14,269			7,355			8,089			15,444
Gross margin		1,210			1,289			2,499			1,239			1,664			2,903
SG&A		699			744			1,443			621			818			1,439
R&D		155			144			299			122			149			271
Share of income of associates		-			(45	)		(45	)		-			(4	)		(4	)
Other expense (income)		(26	)		(7	)		(33	)		(6	)		1			(5	)
EBIT before special items (2)	$	382			453			835			502			700			1,202
Special items		(23	)		163			140			-			-			-
EBIT	$	405		$	290			695		$	502		$	700			1,202
Financing expense								596									681
Financing income								(599	)								(519	)
EBT								698									1,040
Income taxes								100									203
Net income							$	598								$	837
EPS (basic and diluted; in dollars)							$	0.32								$	0.47
Supplemental information
EBIT before special items(2)	$	382		$	453		$	835		$	502		$	700		$	1,202
Amortization		242			129			371			195			138			333
EBITDA before special items(2)	$	624		$	582		$	1,206		$	697		$	838		$	1,535
On an adjusted basis
Adjusted net income(2)							$	692								$	865
Adjusted EPS (in dollars)(2)							$	0.38								$	0.48
Cash flows from operating activities (usage)	$	1,104		$	504					$	867		$	(269	)
Net additions to PP&E and intangible assets		(1,971	)		(118	)					(1,320	)		(155	)
Segmented free cash flow (usage)(2)	$	(867	)	$	386		$	(481	)	$	(453	)	$	(424	)	$	(877	)
Net income taxes and net interest paid								(260	)								(355	)
Free cash flow usage (2)							$	(741	)							$	(1,232	)

BA: Bombardier Aerospace; BT: Bombardier Transportation
(1)	Our fiscal year ended December 31, 2011 comprises 11 months of BA's results and 12 months of BT's results.
(2)	Non-GAAP financial measure. Refer to the Non-GAAP financial measures and Consolidated results of operations sections in Overview of the Corporation's MD&A for definitions of these metrics. Refer also to the Consolidated results of operations and Liquidity and capital resources sections and Analysis of results sections in BA and BT in Overview of the Corporation's MD&A for reconciliations to most comparable IFRS measures.

SELECTED FINANCIAL INFORMATION

Bombardier Aerospace

Revenues by geographic region (1)
		12 months ended			11 months ended
		December 31, 2012			December 31, 2011
	North America	$	4,811	56%	$	4,281	50%
	Europe		1,723	20%		1,907	22%
	Asia-Pacific		1,126	13%		1,282	15%
	Rest of world(2)		968	11%		1,124	13%
		$	8,628	100%	$	8,594	100%

(1)	Revenues are attributed to countries based on the location of the customer.
(2)	The region Rest of world includes South America, Central America, Africa, the Middle East and the CIS.

Total aircraft deliveries
			Three months ended	Two months ended	12 months ended	11 months ended
			December 31	December 31	December 31	December 31
(in units)			2012	2011	2012	2011
	Business aircraft
		Excluding those of the Flexjet fractional ownership program	59	47	176	161
		Flexjet fractional ownership program(1)	1	1	3	2
			60	48	179	163
	Commercial aircraft		16	11	50	78
	Amphibious aircraft		1	1	4	4
			77	60	233	245

(1)	An aircraft delivery is included in the above table when the equivalent of 100% of the fractional shares of an aircraft model has been sold to external customers through Flexjet, or when a whole aircraft has been sold to external customers through the Flexjet One program.

Total aircraft net orders
			December 31, 2012				December 31, 2011
		Gross orders	Cancel- lations		Net orders	Gross orders	Cancel- lations		Net orders
Fourth quarters ended			Three months ended			Two months ended
	Business aircraft (including those of the Flexjet fractional ownership program)	141	(17	)	124	44	(3	)	41
	Commercial aircraft	60	-		60	2	-		2
		201	(17	)	184	46	(3	)	43
Fiscal years ended		12 months ended				11 months ended
	Business aircraft (including those of the Flexjet fractional ownership program)	392	(49	)	343	223	(32	)	191
	Commercial aircraft	138	-		138	54	-		54
	Amphibious aircraft	-	-		-	4	-		4
		530	(49	)	481	281	(32	)	249

Book-to-bill ratio (1)
		Three months ended	Two months ended	12 months ended	11 months ended
		December 31	December 31	December 31	December 31
		2012	2011	2012	2011
	Business aircraft	2.1	0.9	1.9	1.2
	Commercial aircraft	3.8	0.2	2.8	0.7
	Total	2.4	0.7	2.1	1.0

(1)	Defined as net orders received over aircraft deliveries, in units.

Total order backlog
		As at
(in billions of dollars)		December 31, 2012		December 31, 2011
	Aircraft programs	$	29.5	$	21.4
	Long-term maintenance and spares support agreements		2.8		1.9
	Military Aviation Training		0.6		0.6
		$	32.9	$	23.9

Bombardier Transportation

Revenues by geographic region
		Three months ended						12 months ended
		December 31						December 31
			2012			2011		2012			2011
	Europe(1)	$	1,326	61%	$	1,467	64%	$	5,141	63%	$	6,275	64%
	North America		359	17%		373	16%		1,454	18%		1,396	14%
	Asia-Pacific		326	15%		257	11%		1,004	12%		1,444	15%
	Rest of world(2)		147	7%		203	9%		541	7%		638	7%
		$	2,158	100%	$	2,300	100%	$	8,140	100%	$	9,753	100%

(1)	The decreases in Europe reflect negative currency impacts of $42 million and $403 million, respectively, for the fourth quarter and fiscal year ended December 31, 2012.
(2)	The region Rest of world includes South America, Central America, Africa, the Middle East and the CIS.

Order intake and book-to-bill ratio
		Three months ended				12 months ended
		December 31				December 31
	Order intake (in billions of dollars)		2012		2011		2012		2011
	Rolling stock	$	0.7	$	2.1	$	5.1	$	6.4
	Services		1.5		0.5		2.5		1.1
	System and signalling		0.8		0.4		1.8		2.2
		$	3.0	$	3.0	$	9.4	$	9.7
	Book-to-bill ratio		1.4		1.3		1.2		1.0

Order backlog
				As at
	(in billions of dollars)	December 31, 2012		December 31, 2011
	Rolling stock(1)	$	22.3	$	22.6
	Services		7.1		5.5
	System and signalling		4.3		3.8
		$	33.7	$	31.9

(1)	Of which $13.4 billion, or 60% of rolling stock order backlog, had a percentage of completion from 0% to 25% as at December 31, 2012 ($15.3 billion, or 68%, as at December 31, 2011).

ADVANCE NOTICE BY-LAW

The Board of Directors of the Corporation has approved an amendment to the Corporation's By-Law One to add an advance notice requirement (the By-Law Amendment), which requires advance notice to the Corporation in certain circumstances where nominations of persons for election as a director of the Corporation are made by shareholders.

In the case of an annual meeting of shareholders, notice to the Corporation must be made not less than 30 nor more than 65 days prior to the date of the annual meeting; provided, however, that in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.

In the case of a special meeting of shareholders (which is not also an annual meeting), notice to the Corporation must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.

The By-Law Amendment is effective immediately. At the next meeting of shareholders of the Corporation, shareholders will be asked to confirm and ratify the By-Law Amendment.

DIVIDENDS ON COMMON SHARES

Class A and Class B Shares

A quarterly dividend of $0.025 Cdn per share on Class A Shares (Multiple Voting) and of $0.025 Cdn per share on Class B Shares (Subordinate Voting) is payable on March 31, 2013 to the shareholders of record at the close of business on March 15, 2013.

Holders of Class B Shares (Subordinate Voting) of record at the close of business on March 15, 2013 also have a right to a priority quarterly dividend of $0.000390625 Cdn per share.

DIVIDENDS ON PREFERRED SHARES

Series 2 Preferred Shares

A monthly dividend of $0.0625 Cdn per share on Series 2 Preferred Shares has been paid on November 15 and December 15, 2012, January 15 and February 15, 2013.

Series 3 Preferred Shares

A quarterly dividend of $0.195875 Cdn per share on Series 3 Preferred Shares is payable on April 30, 2013 to the shareholders of record at the close of business on April 12, 2013.

Series 4 Preferred Shares

A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is payable on April 30, 2013 to the shareholders of record at the close of business on April 12, 2013.

About Bombardier

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

Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2012, we posted revenues of $16.8 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bombardier, Challenger, CRJ, CRJ900, CS300, CSeries, FLEXITY, Flexjet, Global, Learjet, Learjet 85, NextGen, Q400, The Evolution of Mobility and TALENT are trademarks of Bombardier Inc. or its subsidiaries.

The Management's Discussion and Analysis and the interim consolidated financial statements are available at ir.bombardier.com.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, our market and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; our competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations. Forward-looking statements generally can be identified by the use of forward looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe", "continue", "maintain" or "align", the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. While we consider our assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward looking statements made in this press release, refer to the respective Guidance and forward-looking statements sections in Overview, Bombardier Aerospace and Bombardier Transportation sections in the Management's Discussion and Analysis ("MD&A") of the Corporation's annual report for the fiscal year ended December 31, 2012.

Certain factors that could cause actual results to differ materially from those anticipated in the forward looking statements include risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry and major rail operators), operational risks (such as risks related to developing new products and services; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; to the environment; dependence on certain customers and suppliers; human resources; fixed-price commitments and production and project execution), financing risks (such as risks related to liquidity and access to capital markets, exposure to credit risk, certain restrictive debt covenants, financing support provided for the benefit of certain customers and reliance on government support) and market risks (such as risks related to foreign currency fluctuations, changing interest rates, decreases in residual values and increases in commodity prices). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation's annual report for the fiscal year ended December 31, 2012. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect our expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

CAUTION REGARDING NON-GAAP MEASURES

This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS) and includes measures presented on a pro forma basis to reflect the impact of our January 2013 debt issuance. Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. It is also based on non GAAP financial measures including EBITDA, EBIT and EBITDA before special items, EBIT margin before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are directly derived from the Consolidated Financial Statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our consolidated financial statements with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the Non-GAAP financial measures and Consolidated results of operations sections in the MD&A for definitions of these metrics. Refer to Consolidated results of operations section and Analysis of results sections in Bombardier Aerospace and Bombardier Transportation of the Corporation's MD&A for reconciliations to the most comparable IFRS measures.