Bombardier

Agenda

• Introduction: Bombardier´s background check & case study.
• Project valuation: Suggested course of action, base financial and performance indicators & proposed WC structure.
• Desired outputs: Improved financials, stress scenarios & qualitative results.
• Final remarks: Final suggestions & rounding up.

Bombardier: the evolution of movility

MISSION STATEMENT


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.

vision

• Employees
• Customers
• Suppliers
• Investors and shareholders
• Communities

industry BACKGROUND

Market Value for the aerospace & defense industry(MMD)

Competition

• Boeing-USA
• United Technologies Corporation- USA
• Lockheed Martin- USA
• Embraer- Brazil

Revenue comparison

The project

Just like Johnnie, we will keep walking with the project, riping the benefits of an efficient, capable and future ready production line.

Some important numbers

This ones are also important, we swear

P&L highlights (% of Net sales)

ABout NPV and other indicators

• NPV: $ 164, 162.64
• IRR: 6.29%
• PI: 1.1
• Payback: 9.53

Improving the working capital

Working Capital =Current Assets- Current Liabilities
Companies have to know how to manage the WC in order to meet its short-term cash obligations but also manage properly the operational efficiency of the company.

Base CCC elements

Getting that CCC down

• Earning profits
• Replacing short term debt with long term
• Selling long term assets for cash
• Factoring
• Negotiation payment periods with suppliers.
• Creating better inventory controls

Some CCC benchmarking

Improved CCC elements

Improved indicators

• NPV: up by 137%
• IRR: + 29%
• PI: up by 13%
• Payback: reduced by 9%

What if? 17% investment up

• NPV: $145,014
• IRR: 6.05%
• PI: 1.1
• Payback: 9.6

What if? 17% sales down

• NPV: $ 62,610
• IRR: 5.48%
• PI: 1.04
• PB: 9.8

risk mitigation

Qualitative perspectives

all your qualitative goodies

• Efficient use of machinery
• Reduction of lead times
• Increased production capacity
• Sales boost
• Working Capital improvement

FInal remarks

- Improved capacity; staying business relevant.
- Working Capital structure overhauling; more liquidity.
-Strong performance compared to peers; leading the benchmark.
- Viable financial results; existing NPV and suitable PB Period.

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