From The Ground Up: A Complete Approach to Aircraft and The Environment Trung Ngo, Vice-President Marketing & Communications McGill-ICAO Conference September 2007 Forward-looking Statements This presentation includes forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe” or “continue” or the negatives of these terms or variations of them or similar terminology. By their nature, forward-looking statements require Bombardier Inc. (the “Corporation”) to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause the Corporation’s actual results in future periods to differ materially from forecasted results. While the Corporation considers its assumptions to be reasonable and appropriate based on current information 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 presentation, please refer to the respective sections of the Corporation’s aerospace segment (“Aerospace”) and the Corporation’s transportation segment (“Transportation”) in the F06 MD&A. 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 the Corporation’s business environment (such as the financial condition of the airline industry, government policies and priorities and competition from other businesses), operational risks (such as regulatory risks and dependence on key personnel, risks associated with doing business with partners, risks involved with developing new products and services, warranty and casualty claim losses, legal risks from legal proceedings, risks relating to the Corporation’s dependence on certain key customers and key suppliers, risks resulting from fixed-term commitments, human resource risk, and environmental risk), financing risks (such as risks resulting from reliance on government support, risks relating to financing support provided on behalf of certain customers, risks relating to liquidity and access to capital markets, risks relating to the terms of certain restrictive debt covenants and market risks (including currency, interest rate and commodity pricing risk). - see the Risks and Uncertainties section in the F06 MD&A. 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 the Corporation’s expectations as at the date of the F06 MD&A and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All amounts are expressed in U.S. dollars unless otherwise stated. Sources of Aircraft Noise on Approach • Main Sources of Aircraft Noise • A) Undercarriage • B) Flaps & Slats • C) Engines • Main Sources of Engine Noise • • • A) Fan Noise B) Jet Noise Operational Procedures (ATM) Source: Silent Aircraft Initiative: http://silentaircraft.org/aircraftnoise High Bypass Engines Have Altered The Size and Contribution of Engine Source Noise Noise of a typical 1960s engine Noise of a typical 1990s engine Fan Compressor Jet Turbine Combustor Turbine& & Jet Compressor Turbine & Combustor Turbine & The European Context ACARE Goals for 2020 1. Quality and affordability 2. Environment - Reduce the CO2 emissions and fuel consumption by 50% per passenger 3. Safety - Reduce the NOx by 80% - Reduce perceived external noise by 50% 4. Air transport system 5. Security 100% CO2 90% ACARE 2015 EIS 2008 EIS 70% 2000 Baseline 80% 100% NOx Noise 60% -4dB 20% -8dB To Reach ACARE Targets We Need A Technological Breakthrough Trends in Aircraft Noise Reduction Noise (EPNdB) Powerplant Technology Breakthrough (HBPR) Today Technology Breakthrough Interim Step ACARE Target 1960 1970 1980 1990 2000 2010 2020 2030 ~10 EPNdB Working Co-Operatively to Design Quieter Engines 2018+ Counterrotating fan Splice-less inlet 2DOF Acoustic liner Chevron Nozzles 2016 2013 Fluidic / variable geometry chevrons Turbomachinery source noise reduction Note: Estimated timelines are subject conclusions of technology and commercial viability studies Fan Chevron Increased nacelle length Lipskin acoustic liner Nacelles Technology Development at Belfast Collaborative UK Programs ANDANTE 2005-2008 To investigate and design, for both fuel burn and noise benefits, a practical means of modulating the area of the fan bypass nozzle by up to 20% Advanced Nacelle Acoustic Liner 2005-2007 Improved noise attenuation achievable with the following manufacturing process technologies: Zero splice intake liner Enhanced perforate facing sheet • High efficiency two degree of freedom liner Nacelles Technology Development at Belfast Collaborative European Programs SILENCE(R) 2001-2007 Hardware supplied by Bombardier for: Fan rig tests at Anecom, Germany Trent 500 engine tests at Rolls Royce, Hucknall A320 fight tests VITAL 2005-2009 (Environmentally Friendly Engine) Novel approaches to nacelle design, in particular thrust reverser integration Nacelle studies for three engine configurations: DDTF, GTF, CRTF Nacelles Technology Development at Belfast Collaborative UK Programs Environmentally Friendly Engine 2006-2011 Low Weight Nacelle • Innovative thrust reverser for high BPR engine • Structural studies • Material opportunity studies Low Drag Nacelle • Laminar flow control • Surface coatings • Flow control • Bombardier (Belfast) Lead for Powerplant WP • Industry: Rolls Royce, Goodrich, HS Marstons, Smiths; Universities: Cambridge, Oxford, Loughborough, Sheffield, Birmingham, Belfast Low Noise Nacelle • Acoustic area yield • Splice-less designs • Advanced acoustic treatments Research & Development is Driven by Environmental Priorities Canadian Aerospace Environmental Working Group (CAEWG): A Joint Canadian initiative on Noise & Emissions Reductions Noise AND Fuel Burn Research • Reduced nacelle weight Reduced nacelle aerodynamic drag Improved attenuation of engine noise Bombardier Research Potential • • • • • Acoustic Liners Spliceless Inlets Fan Chevrons Increased Nacelle Length Landing Gear Farings Acoustic area maximisation The Highest Weight Q400 Has Plenty of Noise Margin Environmental compatibility Q400 EHGW - Chapter IV Noise Levels Margin (ICAO Annex 16 Chapter III) Noise Level (Chapter IV) 95 90 85 280 Margin (ICAO Ch IV) 4.9 10 93.1 10.4 80 84 78.6 Note: Q400 with Reduced RPM landing 275 Lateral Approach Acc. Noise Level 270 265 15.3 260 255 75 Fly-over Noise Level (EPNdB) Noise Level (EPNdB) 100 255.7 Accumulative The CRJ1000 Will Be Certified to Chapter IV With An Expected Margin of 3.2 EPNdB Noise Level (EPNdB) 100 Margin (ICAO Annex 16 Chapter III ) Noise Level (Chapter IV) 95 5.2 4.9 90 3.2 85 93.4 89.8 80 85.8 75 Noise Level (EPNdB) Environmental compatibility CRJ1000 ER* – Preliminary Chapter IV noise levels 280 278 276 274 272 270 268 266 264 262 Margin (ICAO Ch IV) Acc. Noise Level 3.2 269 Cumulative Fly-over Lateral * Targets per Chapter IV. Applicable to both Stnd 2% & Optional +5% Engine Approach All CRJ Series Aircraft Produce Less Noise Than Their Counterparts Cumulative Exterior Noise EPNdB (cum) CRJ Series 278 276 274 272 270 268 266 264 262 260 258 256 70-78 Seats Current CRJ CRJ700 STD: CRJ900 STD: CRJ1000 EL: CRJ900 Certified chapter 4 noise Levels Certified chapter 4 noise Levels; With Chevron Nozzles Expected margin with chevron nozzle 84-90 Seats Competition 95-104 Seats Old Generation CSERIES • A Game Changer In Its Class Family of Aircraft with Full Commonality Environmentally Focused – 20 EPNdB Margin to Stage IV Total Life Cycle Cost Improvement 15% Better Cash Operating Costs – 20% Fuel Burn Advantage Widebody Comfort In A Single Aisle Aircraft Mature 99% at Entry Into Service Operational Flexibility – Short Field and Longer Range Performance CSERIES – The Community Environmental Solution Schiphol Airport, Amsterdam (RWY 36R) 70 dBA Contour Recently Certified Product C110 @ 2,700 nm dBA-A Weighted Sound Level; C110: MTOW 126,800 lb, Flaps 5 deg, MTOT 23,300 lbf; Competition RTOW 115,280 lb (TOFL limitation), MTOT 20,000 lbf, Flap 5 deg 16-18% C110 C130 Competitors Average 18-20% Competitors Average Block Fuel - lb (500 nm) 2013 Engine Technology Provides Significant Fuel Savings 110 Seats 130 Seats CSeries: Significantly Lower CO2 Emissions per Seat CO2 Emissions per Seat CO2 Emissions Old 100+ Seat Jets - 32 to 34% - 17 to 19 % New 100+ Seat Jets 500 nm Mission; Old Jets: DC9, M87, F100, RJ100, 737-300, 737,500 New Jets: E195, A318, A319, 737-600, 737-700; CSeries: C110, C130 CSeries CSeries: 52% Margin to CAEP6 and No Visible Smoke NOx Emissions NOx Emissions +6% Old 100+ Seat Jets CAEP6 NOx Requirement - 22 % - 52 % New 100+ Seat Jets CSeries Bombardier’s Green Machines Fuel Efficient Low Emissions Quiet Footprints