The document provides details of EPGP students' visit to Bombardier Inc., including presentations on Bombardier's history and involvement in the 2010 Vancouver Olympics as a sponsor, as well as summaries of Bombardier's divisions, financial performance, mission and values, transportation strategy, and products. Bombardier is a global leader in aerospace and rail transportation, with the goal of providing superior customer service and shareholder value through innovation, excellence, and sustainable growth.

1. Industry Visit – Bombardier Inc.
International Immersion - Assignment #2
EPGP 2009-10 - Term IV- Individual Submission
28-Feb-2010
Instructor: Prof. S. Basu
Submitted by:
Rajendra Inani - #27
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2. Table of Contents
1 EPGP’s visit to Bombardier...................................................................................................... 3
2 Vancouver 2010 Olympic and Paralympic Winter Games Sponsorship........................ 3
3 History ......................................................................................................................................... 4
3.1 Worldwide Presence....................................................................................................... 5
4 Industry....................................................................................................................................... 6
4.1 Bombardier Profile........................................................................................................... 7
4.2 Financial Performance................................................................................................... 7
4.3 Credit Ratings .................................................................................................................. 7
4.4 Industry-Leading Transportation Manufacturer ......................................................... 8
4.4.1 Bombardier Aerospace ............................................................................................. 8
4.4.2 Bombardier Transportation........................................................................................ 9
5 Mission Statement and Core Values .................................................................................. 10
5.1 Integrity ...........................................................................................................................10
5.2 Commitment to Excellence ........................................................................................10
5.3 Customer Orientation...................................................................................................10
5.4 Shareholder Focus ........................................................................................................10
6 Bombardier Transportation – Strategy................................................................................ 10
6.1 Objective & Scope .......................................................................................................10
6.2 Components of Strategy .............................................................................................11
7 Bombardier Transportation – Justification of need for Trains ......................................... 11
7.1 Climate Change ...........................................................................................................11
7.2 Climate Urbanization and Population Growth ........................................................11
7.3 Congestion.....................................................................................................................12
7.4 Oil scarcity and price of energy.................................................................................12
7.5 Aging of Societies .........................................................................................................12
8 Bombardier Products and Solutions - The Broadest Portfolio in the Rail Industry ........ 13
8.1 ECO4: The new Formula for Total Train Performance .............................................13
8.2 Rail Vehicles ...................................................................................................................14
8.3 Transportation Systems .................................................................................................14
8.4 Production Shop Floor Visit ..........................................................................................14
9 Bombardier – Corporate Social Responsibility.................................................................. 18
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3. 1 EPGP’s visit to Bombardier
As part of international immersion module, EPGP
undertook a visit to University of Pittsburgh for two
weeks. This team underwent Executive Leadership
Program conducted over a period of two weeks (7th
to 19th Feb 2010). Under the context of Industrial
visit, our team visited three industries. This report
covers our understanding of Bombardier visit dated
17th Feb 2010.
We were given presentations and plant tour. A
number of senior executives provided the
presentations and a guided tour of facility. We were
introduced in details about Bombardier
Transportations Division.
2 Vancouver 2010 Olympic and Paralympic Winter Games Sponsorship
Bombardier is proud to be an Official Supporter of the
Vancouver 2010 Olympic and Paralympic Winter
Games to be held in Canada.
As part of its sponsorship, it has taken on the prestigious
assignment of designing and manufacturing the iconic
Vancouver 2010 Olympic Torch. Its multidisciplinary
team, representing both Bombardier Aerospace and
Bombardier Transportation, is working closely with the
Vancouver 2010 Organizing Committee (VANOC) on the design and manufacturing of the torch.
In addition, Bombardier is a Signature Supporter of the Vancouver 2010 Olympic and Paralympic Torch
Relays. The Vancouver 2010 Olympic Torch will wind its way across Canada on a 45,000-kilometre
journey, over 100 days, involving over 12,000 torchbearers.
Sponsoring the Vancouver 2010 Olympic and Paralympic Winter Games is a natural for Bombardier, as
they are already proud sponsors of Canadian athletes. Most notably, they support the Canadian Alpine
Ski team and have shared its engineering and aerodynamics expertise with the Canadian Bobsleigh
team. These athletes, just like Bombardier, compete and achieve at the world’s highest stage.
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4. 3 History
Bombardier Transportation is a multinational firm that can trace its origins to making snowmobiles. As the
company improved its manufacturing capabilities, it entered into rail equipment manufacturing. The firm
has since become a world leader in the rail equipment industry, and offers equipment and services to the
transportation industry. In fact, Bombardier now classifies itself in the transportation industry, which is an
umbrella term for all of the sectors in which it competes. These include rail, aerospace, manufacturing,
services, and signal and rail control systems.
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5. Throughout its history, Bombardier has consistently responded to challenges and opportunities with
tireless innovation, daring creativity and entrepreneurial gusto. Its proven ability to absorb, improve and
generate new technologies, processes and management philosophies has long fuelled its
competitiveness and growth.
Following were the keys to its enduring success.
Aerospace Key Acquisitions Rail Transportation Key Acquisitions
• 1986 Canadair (Canada) • 1971 Lohnerwerke (Austria)
• 1989 Short Brothers (Ireland) • 1976 MLW-Worthington (Canada)
• 1990 Learjet Corporation’s assets (U.S.) • 1984 Alco Power (U.S.)
• 1992 de Havilland (Canada) • 1988 BN Constructions Ferroviaires et Métalliques
• 2000 Skyjet (U.S.) (Belgium)
• 1989 ANF-Industrie (France)
• 1990 Procor Engineering (Britain)
• 1992 UTDC (Canada)
• 1992 Constructura Nacional de Carros de Ferrocarril
(Mexico)
• 1995 Waggonfabrik Talbot (Germany)
• 1998 Deutsche Waggonbau (Germany)
• 2001 DaimlerChrysler Rail Systems - Adtranz
(Germany)
3.1 Worldwide Presence
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6. Bombardier Aerospace is a world leader in the design and manufacture of innovative aviation products
and provides services for the commercial, business and amphibious aircraft markets. It also offers
Bombardier Flexjet fractional ownership, aircraft charter and management, technical services, aircraft
maintenance and pilot training for business, commercial airline and military customers.
Bombardier Transportation is the global leader in the rail equipment manufacturing and servicing industry.
Its wide range of products includes passenger rail vehicles and total transit systems. It also manufactures
locomotives, bogies, propulsion and controls and provides rail control solutions.
4 Industry
The three main components of Bombardier’s business are rail, maintenance, and aerospace. The rail
industry is this case refers to the rail equipment itself, namely freight and passenger cars. Contracts may
be awarded for the construction aspect of the project as well. In either case, there is a significant amount
of costs incurred by Bombardier. Initial outlays are required for materials needed for the contract
requirements, and to begin production. In addition, there is a massive amount of investment in research
and development and engineering that was required to assess the project’s viability and a subsequent
bid.
Maintenance is referred to separately because there are various stages of contracts that Bombardier
obtains that do not always include all of the maintenance for a particular project. These contracts are
most often for equipment, such as passenger trains and automated people movers. However, lately
Bombardier has won opportunities to maintain the right-of-way used by the equipment, which includes
tracks, bridges, and buildings.
As the few companies that are equipped to compete in these markets have grown in size and capabilities,
a new term has been coined to describe the one stop shopping that these firms can provide for
infrastructure projects. DBOM, which stands for Design, Build, Operate, and Maintain, is a full service
solution that lets the government simply offer out contracts for an entire system with specifications, and
let these companies bid on them. After construction is completed and equipment has been provided, the
contract calls for continued maintenance for a specified time period.
Aerospace is the newest segment of the transportation industry that Bombardier has entered. This seems
to be a natural evolution for the company, since the framework for this product line is very similar to that
of rail. Both consist of significant investment in engineering, design, and production before seeing any
profits, albeit at a higher factor in aerospace than in rail.
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7. 4.1 Bombardier Profile
Bombardier is a world-leading manufacturer of innovative transportation solutions, from commercial
aircraft and business jets to rail transportation equipment, systems and services.
Headquartered in Montréal, Canada, Bombardier has a presence in more than 60 countries. It has
attained its global leadership by exercising foresight, perseverance and innovation in designing and
making products that answer its customers’ needs for quality, dependability and cost-effectiveness.
Bombardier’s revenues for the year ended January 31, 2009 were $19.7 billion US. Its shares are traded
on the Toronto Stock Exchange under the symbol BBD.
4.2 Financial Performance
For the years ended January 31
(Millions of $ US, except as noted) 2009 2008
Revenues 19,721 17,506
EBIT from continuing operations before special item 1,411 902
Net income 1,008 317
EPS – diluted (in $) 0.56 0.16
Free cash flow 342 1,963
Total assets 21,306 22,120
Shareholders’ equity 2,544 3,118
Order backlog (in billions of $) 48.2 53.6
Number of common shares
Class A 316,582,537 316,961,957
Class B 1,413,866,601 1,413,700,636
Diverse Field of activities – FY2009 Revenues
Aerospace Transportation
$10.0 billion $9.8 billion
51% of total revenues 49% of total revenues
EBITDA: $1,327 million in FY2009 EBITDA: $639 million in FY2009
EBIT: $896 million in FY2009 EBIT: $515 million in FY2009
Free cash flow : $128 million in FY2009 Free cash flow : $480 million in FY2009
Backlog: $23.5 billion US * Backlog: $24.7 billion US *
Employees: 32,500 * Employees: 34,200 *
4.3 Credit Ratings
Rating Service / Type of Rating Rating Effective Date
Moody’s Ba2 November 11, 2004
Standard & Poors BB+ April 14, 2008
Fitch BB+ May 16, 2008
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8. 4.4 Industry-Leading Transportation Manufacturer
Bombardier is a global transportation company, present in more than 60 countries on five continents. It
operates two industry-leading businesses:
• Aerospace
• Rail transportation
Its 66,900 employees design, manufacture, sell and support the widest range of world-class products
in these two sectors. This includes commercial and business jets, as well as rail transportation equipment,
systems and services.
4.4.1 Bombardier Aerospace
Bombardier Aerospace is a world
leader in the design and
manufacture of innovative aviation
products and is a provider of
related services for the business,
regional and specialized aircraft
markets. Aerospace has production
sites in Canada, the U.S., the
United Kingdom (Northern Ireland)
and, more recently, in Mexico.
Bombardier Aerospace is well-
positioned in global markets, with
maintenance service centers,
authorized service facilities,
distribution centers and depots for
spare parts and several sales and
marketing offices around the world.
With more than 32,500 employees and well-positioned in global markets, Bombardier Aerospace ranks as
the world’s third largest civil aircraft manufacturer. Its high-performance aircraft and services set the
standard of excellence in several markets, including:
• Business aircraft - Learjet, Challenger and Global aircraft families
• Commercial aircraft - new CSeries program, CRJ Series and Q-Series aircraft families
• Amphibious aircraft - Bombardier 415 and Bombardier 415 MP aircraft
• Jet travel solutions - Flexjet
• Specialized aircraft solutions - Bombardier aircraft modified for special missions
• Aircraft services and training - aircraft parts, maintenance, comprehensive training, technical
support and publications, and online services
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9. 4.4.2 Bombardier Transportation
Bombardier Transportation is the global leader in the rail equipment and system manufacturing industry
and a provider of related services. It offers a full range of passenger railcars, locomotives, light rail
vehicles and automated people movers. It also provides bogies, electric propulsion, control equipment
and maintenance services, as well as complete rail transportation systems and rail control solutions.
Bombardier Transportation’s presence in more than 35 countries includes 56 production/engineering sites
and 21 service centers.
With operations in more than
35 countries, Bombardier
Transportation leads the
world’s rail equipment
manufacturing and servicing
industry. Its 34,200 employees
continue a proud tradition of
delivering ingenious rail
transportation solutions,
including:
• Rail vehicles - automated
people movers, monorails,
light rail vehicles,
advanced rapid transit,
metros,
commuter/regional trains,
intercity/high-speed trains
and locomotives
• Propulsion and controls -
complete product portfolio
for applications ranging
from trolley buses to freight
locomotives
• Bogies - product portfolio
for the entire range of rail
vehicles
• Services - fleet
maintenance, operations
and maintenance (O&M),
vehicle refurbishment and
modernization, and
material management
• Transportation systems -
customized “design-build-
operate-maintain”
transportation system solutions
• Rail control solutions - advanced signaling solutions for mass transit and mainline systems
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10. 5 Mission Statement and Core Values
Following is the Mission Statement published by Bombardier.
• Our mission is to be the world's leading manufacturer of planes and trains.
• We are committed to providing superior value and service to our customers and sustained
profitability to our shareholders by investing in our people and products.
• We lead through innovation and outstanding product safety, efficiency and performance.
• Our standards are high. We define excellence—and we deliver.
Following are the Core Values published by Bombardier.
5.1 Integrity
We behave with integrity and in an ethical manner in everything we do and say, thereby earning and
maintaining the trust and respect of customers, shareholders, suppliers, colleagues, partners and
communities.
5.2 Commitment to Excellence
Our commitment is to demonstrate excellence in all spheres of our work and in our interactions with
customers, shareholders, suppliers, colleagues, partners and communities. In addition, we commit to
exercising judgment, professionalism, rigour, self-discipline, perseverance and team spirit.
5.3 Customer Orientation
We promote a customer-centered culture that emphasizes outstanding service and meets our
commitments at every level of our organization.
5.4 Shareholder Focus
We are focused on creating sustainable shareholder value through developing profitable products and
projects, and soundly managing the business for the benefit of customers, shareholders, suppliers,
colleagues, partners and communities.
6 Bombardier Transportation – Strategy
6.1 Objective & Scope
• Grow EBIT further while maintaining leadership position
• Deliver excellent project performance through improved execution
• Increase product competitiveness through innovation and customer-driven development
• Be the preferred and most reliable partner to our customers
• Continue to capitalize on new market opportunities
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11. 6.2 Components of Strategy
1 Become #1 in customer satisfaction through enhanced
execution
Way Forward 2 Raise our game on global talent management
3 Actively manage risks
4 Establish local roots in all key markets
5 Enhance our corporate social responsibility
6 Develop innovative, environmentally conscious
Operations products that meet customer needs globally
7 Optimize our footprint/ supply chain and ensure
efficient structures
7 Bombardier Transportation – Justification of need for Trains
At Bombardier Transportation, it is felt that climate is right for Trains due to following megatrends.
• Climate Change
• Urbanization and Population Growth
• Congestion
• Oil scarcity and price of energy
• Aging of Societies
7.1 Climate Change
Challenge - CO2 emissions are a contributing
factor to global warming
Solution - Rail has least CO2 emissions of all
modes of transport
7.2 Climate Urbanization and
Population Growth
Challenge - Increasing demand for passenger
transportation, esp. in urban areas
Solution - Rail provides capacity for projected
urban population growth
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12. 7.3 Congestion
Challenge - Congestion wastes time, energy,
money and creates pollution
Solution - Rail uses considerably less land and
carries high number of passengers
7.4 Oil scarcity and price of
energy
Challenge - Oil becoming scarce and energy
prices will continue to be volatile
Solution - Rail Rail consumes dramatically
less energy
7.5 Aging of Societies
Challenge - Aging of population (esp. in
developed countries)
Solution - Rail provides easily accessible
transport systems to all age groups
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13. 8 Bombardier Products and Solutions - The Broadest Portfolio in the
Rail Industry
8.1 ECO4: The new Formula for Total
Train Performance
Introducing ECO4
• Modular portfolio of innovative technologies
and solutions that add value to trains and
services
• Ideal response to wide spectrum of
performance requirements
• Easy customization to any fleet
Benefits to customers
• Save energy
• Improve efficiency
• Achieve sound economic value
• Protect the environment
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14. 8.2 Rail Vehicles
• Broadest rail vehicle portfolio
• More than 100,000 Bombardier rail vehicles in service
worldwide
Portfolio
• Light rail vehicles (FLEXITY)
• Metros (MOVIA)
• Commuter trains (SPACIUM, BiLevel)
• Regional trains (ITINO, TALENT)
• Intercity trains (REGINA, ELECTROSTAR,
TURBOSTAR)
• High speed trains (ZEFIRO)
• Locomotives (TRAXX)
8.3 Transportation Systems
• Provider of over 60 systems worldwide
• Over 35 years of experience in systems engineering
and integration
Portfolio
Monorail systems
(INNOVIA Monorail)
APM systems (INNOVIA APM)
Light rail systems
ART systems (INNOVIA ART)
Metro systems
Intercity systems
8.4 Production Shop Floor Visit
During our visit to shop floor, we witnessed the testing of rail coaches at Pittsburgh factory. At this
factory, the fabricated rail coaches are put through wiring for electrical and testing is being carried out.
We noticed a team meeting room, where at the start of day all team members meet for few minutes at
the start of shift and update stats of their jobs on the wall boards. This gives visiability of different team
achivements to each other.
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18. 9 Bombardier – Corporate Social Responsibility
Bombardier became signatory of the United Nations Global Compact in March 2007
• A voluntary initiative that promotes business
leadership in the areas of human rights, labour
standards, environment and anti-corruption
• Bombardier published its second company-wide
Corporate Responsibility Report in November 2009
Bombardier is an index component of two of the Dow Jones Sustainability Indexes since 2007
• The Dow Jones Sustainability World Index comprises the 300 leading sustainability companies
worldwide
• The Dow Jones Sustainability North America Index comprises the 100 leading sustainability
companies in North America
Bombardier was recognized as one of the ten Canadian Climate Disclosure Leaders in its category in the
Carbon Disclosure Project 2009 – Canada 200 Report
• The report highlights companies with exceptional performance on corporate climate change related
transparency and discusses how Canada’s largest companies are implementing initiatives to prepare
for successful operations in a carbon-constrained world.
*************** End of Report ****************
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