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BOMBARDIER INC. (:BBD.A TS) Bombardier Reports Fourth Quarter and Full Year 2017 Results

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MONTREAL, QUEBEC -- (Marketwired) -- 02/15/18 -- Bombardier (TSX: BBD.A)(TSX: BBD.B)(OTCQX: BDRBF) today reported its fourth quarter and full year 2017 results, highlighting solid financial and operational performance across the company.

"Bombardier closed out the second full year of its five-year turnaround plan with very strong performance," said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. "Because of this solid performance, we begin 2018 with great momentum. Our operational transformation is in full motion; our growth programs - including the Global 7000 - are on track and we have a clear line of sight to our 2020 objectives."

In 2017, Bombardier's full-year EBIT before special items grew 57% year-over-year, from $427 million to $672 million, while EBITDA before special items(1) reached close to $1 billion. Full year EBIT margins exceeded guidance at Transportation, Business Aircraft and Aerostructures. Before special items, EBIT margins(1) were 8.4% at Transportation and Business Aircraft; and 10.0% at Aerostructures. Consolidated revenues for the year were $16.2 billion, in line with our guidance.

Free cash flow performance(2) for 2017 was better than guidance by more than $200 million, with a usage of $786 million. This over performance allowed Bombardier to end the year with a $3.1 billion cash balance and well positioned to achieve cash flow breakeven in 2018(3), a key objective of the Company's turnaround plan.

"2018 will be a pivotal year for Bombardier," Bellemare continued. "We are moving out of our investment cycle and into a strong growth cycle. Our focus is on flawless execution: bringing the Global 7000 into service; delivering on our major rail projects; and closing the Airbus partnership following regulatory approvals later this year."

The company also announced that Transportation's strong results in 2017 outpaced the performance targets underlying CDPQ's investment in BT Holdco. Accordingly, for the 12-month period starting on February 12, 2018, Bombardier's percentage of ownership on conversion of CDPQ's shares will increase by 2.5%, up from 70% to 72.5%. Any dividends paid by BT Holdco to its shareholders during this period will be distributed on the basis of each shareholder's percentage of ownership on conversion, being 72.5% for Bombardier and 27.5% for the CDPQ. These adjustments will become effective once the audited consolidated financial statements of BT Holdco are duly approved by its Board of Directors.

Selected results

For the fiscal years ended December 31       2017         2016    Variance----------------------------------------------------------------------------Revenues                                $  16,218    $  16,339          (1)%EBIT                                    $     246    $     (58)        nmfEBIT margin                                   1.5%        (0.4)%   190 bpsEBIT before special items               $     672    $     427          57%EBIT margin before special items              4.1%         2.6%    150 bpsEBITDA before special items             $     993    $     798          24%EBITDA margin before special items(1)         6.1%         4.9%    120 bpsNet loss                                $    (553)   $    (981)         44%Diluted EPS (in dollars)                $   (0.25)   $   (0.48)  $    0.23Adjusted net income (loss)(1)           $      63    $    (268)        nmfAdjusted EPS (in dollars)(1)            $    0.03    $   (0.15)  $    0.18Net additions to PP&E and intangibleassets                                 $   1,317    $   1,201          10%Cash flows from operating activities    $     531    $     137         288%Free cash flow usage                    $    (786)   $  (1,064)         26%============================================================================As at December 31                            2017         2016    Variance----------------------------------------------------------------------------Available short-term capitalresources(4)(5)                        $   4,225    $   4,477          (6)%============================================================================For the fourth quarters ended December31                                          2017         2016    Variance----------------------------------------------------------------------------Revenues                                $   4,715    $   4,380           8%EBIT                                    $     149    $      74         101%EBIT margin                                   3.2%         1.7%    150 bpsEBIT before special items               $     215    $     104         107%EBIT margin before special items              4.6%         2.4%    220 bpsEBITDA before special items             $     304    $     203          50%EBITDA margin before special items            6.4%         4.6%    180 bpsNet loss                                $    (109)   $    (259)         58%Diluted EPS (in dollars)                $   (0.05)   $   (0.12)  $    0.07Adjusted net income (loss)              $      51    $    (141)        nmfAdjusted EPS (in dollars)               $    0.02    $   (0.07)  $    0.09Net additions to PP&E and intangibleassets                                 $     365    $     327          12%Cash flows from operating activities    $   1,237    $     823          50%Free cash flow                          $     872    $     496          76%============================================================================All amounts in this press release are in U.S. dollars, unless otherwiseindicated.Amounts in tables are in millions except per share amounts, unless otherwiseindicated.

SEGMENTED RESULTS AND HIGHLIGHTS

Business Aircraft

----------------------------------------------------------------------------For the fiscal years ended December 31       2017         2016    Variance----------------------------------------------------------------------------Revenues                                $   4,961    $   5,741         (14)%Aircraft deliveries (in units)                140          163         (23)EBIT                                    $     391    $     477         (18)%EBIT margin                                   7.9%         8.3%   (40) bpsEBIT before special items               $     416    $     369          13%EBIT margin before special items              8.4%         6.4%    200 bpsEBITDA before special items             $     513    $     528          (3)%EBITDA margin before special items           10.3%         9.2%    110 bpsNet additions to PP&E and intangibleassets                                 $   1,075    $     721          49%============================================================================As at December 31                            2017         2016    Variance----------------------------------------------------------------------------Order backlog (in billions of dollars)  $    14.0    $    15.4          (9)%============================================================================--  Business Aircraft's 2017 financial performance met or exceeded guidancedelivering 140 aircraft. Revenues were $5.0 billion with EBIT marginsbefore special items of 8.4%.--  For the fourth quarter, deliveries reached 44 units, including a strongmix of Challenger and Global family aircraft, representing 29 and 13deliveries respectively. These families of aircraft continued to leadtheir respective market segments during the quarter.--  The 200 bps improvement in EBIT margin before special items reflects ourcontinued operating discipline, and stronger contribution from theaftermarket business, benefiting from recent investments to increaseservice capacity and portfolio of offerings. In line with theaftermarket growth strategy, revenues from these activities grew by morethan 10% in 2017.--  Demonstrating continued focus on driving financial performance in anymarket, EBIT before special items grew 35% over the past two years, from$308 million to $416 million, even as we managed lower revenues ofapproximately 30%. As such, the segment is poised to benefit from itsincreased production efficiency and leaner cost structure when theGlobal 7000 enters-into-service and the business aircraft marketrecovers.--  The fourth quarter of 2017 was the strongest in terms of order intakecompared to the previous three quarters of 2017, and higher than thefourth quarters of 2016 and 2015 respectively.--  The Global 7000 aircraft continues to perform extremely well and toexhibit a high level of reliability. The availability of four FTVs forthe entire fourth quarter has accelerated flight testing and the fifthand final FTV has joined the test program on January 30, 2018. Theprogram has cumulated over 1,500 flight test hours to date and withmultiple aircraft in final assembly, the Global 7000 aircraft is ontrack for EIS in the second half of 2018.(6)

Commercial Aircraft

----------------------------------------------------------------------------For the fiscal years ended December 31       2017         2016    Variance----------------------------------------------------------------------------Revenues                                $   2,382    $   2,617          (9)%Aircraft deliveries (in units)                 73           86         (13)Net orders (in units)                          70          161         (91)Book-to-bill ratio(7)                         1.0          1.9        (0.9)EBIT                                    $    (385)   $    (903)         57%EBIT margin                                 (16.2)%      (34.5)%  1830 bpsEBIT before special items               $    (377)   $    (417)         10%EBIT margin before special items            (15.8)%      (15.9)%    10 bpsEBITDA before special items             $    (305)   $    (353)         14%EBITDA margin before special items          (12.8)%      (13.5)%    70 bpsNet additions to PP&E and intangibleassets                                 $     107    $     392         (73)%============================================================================As at December 31                            2017         2016    Variance----------------------------------------------------------------------------Order backlog (in units)                      433          436          (3)============================================================================--  We are moving ahead and making progress obtaining regulatory approvalsfor the announced partnership with Airbus for the C Series aircraft. Weexpect to obtain all approvals for the partnership in 2018, and in themeantime, we are conducting site visits and planning for the operationof the U.S. final assembly line in Mobile, Alabama, and working on otherintegration streams, consistent with antitrust law. On January 26, 2018,the U.S. International Trade Commission rejected Boeing's attempt tohave tariffs imposed on C Series aircraft, clearing the path for us tosupport Delta this year as we work to close our partnership with Airbus.--  We delivered 73 aircraft during the year, within the overall guidancerange, including 30 Q400, 26 CRJ, and 17 C Series aircraft. Thisincludes 22 aircraft in the fourth quarter, in line with the previousyear.--  We delivered the first two CS300 aircraft to Korean Air Lines, theprogram's Asian launch customer, in the final week of December 2017,and supported their preparation for commercial service, which beganin January 2018.--  The year was marked by a book-to-bill ratio(7) of 1.0 for CommercialAircraft. During the fourth quarter, we received orders across all threeaircraft families. These orders included the following:--  On December 29, 2017, we executed a firm agreement for the sale of12 CS300 aircraft with EgyptAir, along with purchase rights for anadditional 12 CS300 aircraft. Based on the list price of the CS300airliner, the firm-order contract would be valued at approximately$1.1 billion.--  On the same day, we signed an agreement for six CRJ900 aircraft withoptions for six additional CRJ900 regional jets with an unidentifiedcustomer. Based on list price, the firm orders would be valued atapproximately $290 million.--  We also signed two Q400 orders, for two aircraft each, with QazaqAir and Cemair, valued at approximately $133 million based on listprices.--  Commercial Aircraft's financial performance for 2017 was marked by thecontinued production ramp-up of the C Series aircraft program. Asannounced in our third quarter financial results, engine delivery delaysfrom Pratt & Whitney impacted our C Series aircraft deliveries,particularly in the fourth quarter. While revenues reached $2.4 billion,in line with our guidance, the EBIT loss before special items at $377million compared favorably relative to expectations.

Aerostructures and Engineering Services

----------------------------------------------------------------------------For the fiscal years ended December 31       2017         2016    Variance----------------------------------------------------------------------------Revenues                                $   1,570    $   1,549           1%External order intake                         443          392          13%External book-to-bill ratio(8)                1.1          0.9         0.2EBIT                                    $     150    $     128          17%EBIT margin                                   9.6%         8.3%    130 bpsEBIT before special items               $     157    $     124          27%EBIT margin before special items             10.0%         8.0%    200 bpsEBITDA before special items             $     207    $     175          18%EBITDA margin before special items           13.2%        11.3%    190 bpsNet additions to PP&E and intangibleassets                                 $      22    $      20          10%============================================================================As at December 31                            2017         2016    Variance----------------------------------------------------------------------------External order backlog                  $      87    $      42         107%============================================================================--  Financial performance in 2017 for the Aerostructures and EngineeringServices segment was in line with our expectations. Revenues for theyear totalled $1.6 billion, while EBIT margin before special items was10.0%. The significant increase in EBIT margin before special items inthe fourth quarter at 15.3%, relative to guidance and the prior year,demonstrates the positive evolution of anticipated cost reductions oncomponents manufactured by us for the C Series aircraft, as accountedfor under long-term contract accounting.--  During the quarter, Aerostructures and Engineering Services announcedthat it has been selected by Airbus as a supplier on a new enginenacelle program for the Pratt & Whitney powered A320neo family ofaircraft. This contract reinforces our long-term strategy to grow ourcapabilities in the nacelles market and to focus on deliveringinnovative, higher value products and services.

Transportation

----------------------------------------------------------------------------For the fiscal years ended December 31       2017         2016    Variance----------------------------------------------------------------------------Revenues                                $   8,525    $   7,574          13%Order intake (in billions of dollars)   $    10.2    $     8.5          20%Book-to-bill ratio(9)                         1.2          1.1         0.1EBIT                                    $     417    $     396           5%EBIT margin                                   4.9%         5.2%   (30) bpsEBIT before special items               $     712    $     560          27%EBIT margin before special items              8.4%         7.4%    100 bpsEBITDA before special items             $     810    $     657          23%EBITDA margin before special items            9.5%         8.7%     80 bpsNet additions to PP&E and intangibleassets                                 $     123    $     116           6%============================================================================As at December 31                            2017         2016    Variance----------------------------------------------------------------------------Order backlog (in billions of dollars)  $    34.4    $    30.1          14%============================================================================--  We delivered superior financial performance in 2017, while alsopositioning our segment for further growth in both revenues andprofitability.--  Revenues grew 13% year over year to $8.5 billion, in line withguidance.--  EBIT margin before special items grew 100 bps, to 8.4% in 2017,representing the fifth consecutive quarter with margins at or above8%. With two-thirds of the transformation initiatives completed atyear-end, continued execution of the plan is expected to lead tofurther margin expansion.--  Backlog reached $34.4 billion as of December 31, 2017, fuelled by a20% increase in order intake across all product segments primarilyin Europe and Asia-Pacific. This order activity led to abook-to-bill(9) of 1.2 for the full year, the fourth consecutiveyear with a ratio above 1.0.--  Our products have achieved key milestones, setting the stage forincreased future deliveries and revenues including:--  The test train for the New York City subway passed its in-servicetest in December 2017, allowing the remaining cars to be deliveredand to be placed in service;--  The first Queensland New Generation Rollingstock trains enteredpassenger service along the South-East Queensland rail network inAustralia in December 2017;--  In September 2017, the TWINDEXX Vario double deck trains forDeutsche Bahn (DB) have received single traction homologation fromthe German Federal Railway Authority (EBA) and started operationalservice; and--  In January 2018, we announced that the first rail cars for the SanFrancisco Bay Area Rapid Transit District (BART) are enteringpassenger service after successfully completing comprehensivetesting and receiving certification from the California PublicUtilities Commission.--  Transportation's strong results in 2017 outpaced the performance targetsunderlying CDPQ's investment in BT Holdco. Accordingly, for the 12-monthperiod starting on February 12, 2018, Bombardier's percentage ofownership on conversion of CDPQ's shares will increase by 2.5%, up from70% to 72.5%. Any dividends paid by BT Holdco to its shareholders duringthis period will be distributed on the basis of each shareholder'spercentage of ownership on conversion, being 72.5% for Bombardier and27.5% for the CDPQ. These adjustments will become effective once theaudited consolidated financial statements of BT Holdco are duly approvedby its Board of Directors.

About Bombardier

With over 69,500 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2017, Bombardier posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bombardier Inc. uses its website as a channel of distribution for material company information. Financial and other material information regarding Bombardier Inc. is routinely posted on its website and accessible at bombardier.com. Investors are hereby notified information about regular dividends declared and paid by Bombardier is only made available through its website, unless otherwise required by applicable securities laws.

Bombardier, Challenger, CRJ, CRJ900, CS300, C Series, Global, Global 7000, Global 8000, Q400 and TWINDEXX are trademarks of Bombardier Inc. or its subsidiaries.

Readers are strongly advised to view a more detailed discussion of our results by segment in our Management's Discussion and Analysis and Consolidated financial statements which are posted on our website at ir.bombardier.com.

bps:basis pointsnmf:information not meaningful(1) Non-GAAP financial measures. See Caution regarding non-GAAP measures atthe end of this press release.(2) Margin refers to EBIT before special items or EBIT margin before specialitems. Free cash flow performance refers to free cash flow usage. Non-GAAP financial measures. See Caution regarding non-GAAP measures at theend of this press release.(3) See the forward-looking statements disclaimer and each reportablesegment's Guidance and forward-looking statements section in theCorporation's financial report for the fiscal year ended December 31,2017 for details regarding the assumptions on which the guidance isbased.(4) Defined as cash and cash equivalents plus the amount available under theCorporation's revolving credit facilities.(5) Following the anticipated closing of our C Series partnership withAirbus, the assets and liabilities of the C Series aircraft program arepresented under Assets held for sale. Refer to the strategic partnershipsection in Commercial Aircraft, Note 15 - Cash and cash equivalent andNote 28 - Assets held for sale in the Corporation's 2017 Consolidatedfinancial statements for more details on the transaction as well as theaccounting treatment as at December 31, 2017.(6) See the Global 7000 and Global 8000 aircraft program disclaimer in theMD&A of the Corporation's financial report for the fiscal year endedDecember 31, 2017.(7) Ratio of net orders received over aircraft deliveries, in units.(8) Ratio of new external orders over external revenues.(9) Ratio of new orders over revenues.

CAUTION REGARDING NON-GAAP MEASURES

This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, EBIT before special items and EBITDA before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS; therefore, others using these terms may define them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and each reporting segments' Analysis of results sections in the Corporation's MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.

Reconciliation of segment to consolidated results============================================================================Fourth quarters          Fiscal yearsended December 31     ended December 31----------------------------------------------------------------------------2017       2016       2017       2016----------------------------------------------------------------------------RevenuesBusiness Aircraft               $  1,473   $  1,651   $  4,961   $  5,741Commercial Aircraft                  677        699      2,382      2,617Aerostructures and EngineeringServices                            413        319      1,570      1,549Transportation                     2,493      1,948      8,525      7,574Corporate and Elimination           (341)      (237)    (1,220)    (1,142)----------------------------------------------------------------------------$  4,715   $  4,380   $ 16,218   $ 16,339============================================================================EBIT before special itemsBusiness Aircraft               $    120   $    100   $    416   $    369Commercial Aircraft                 (142)      (141)      (377)      (417)Aerostructures and EngineeringServices                             63         30        157        124Transportation                       217        181        712        560Corporate and Elimination            (43)       (66)      (236)      (209)----------------------------------------------------------------------------$    215   $    104   $    672   $    427----------------------------------------------------------------------------Special ItemsBusiness Aircraft               $     (9)  $      1   $     25   $   (108)Commercial Aircraft                    5          3          8        486Aerostructures and EngineeringServices                             13          6          7         (4)Transportation                        11         20        295        164Corporate and Elimination             46          -         91        (53)----------------------------------------------------------------------------$     66   $     30   $    426   $    485----------------------------------------------------------------------------EBITBusiness Aircraft               $    129   $     99   $    391   $    477Commercial Aircraft                 (147)      (144)      (385)      (903)Aerostructures and EngineeringServices                             50         24        150        128Transportation                       206        161        417        396Corporate and Elimination            (89)       (66)      (327)      (156)----------------------------------------------------------------------------$    149   $     74   $    246   $    (58)============================================================================Reconciliation of EBITDA before special items and EBITDA to EBIT============================================================================Fourth quarters          Fiscal yearsended December 31     ended December 31----------------------------------------------------------------------------2017       2016       2017       2016----------------------------------------------------------------------------EBIT                              $    149   $     74   $    246   $    (58)Amortization                            89         99        314        371Impairment charges on PP&E andintangible assets(1)                    6         10         51         10----------------------------------------------------------------------------EBITDA                                 244        183        611        323Special items excluding impairmentcharges on PP&E and intangibleassets(1)                              60         20        382        475----------------------------------------------------------------------------EBITDA before special items       $    304   $    203   $    993   $    798============================================================================(1) Refer to the Consolidated results of operations section in theCorporation's MD&A for details regarding special items.Computation of diluted EPS============================================================================Fourth quarters              Fiscal yearsended December 31         ended December 31----------------------------------------------------------------------------2017         2016         2017         2016----------------------------------------------------------------------------Net loss attributable toequity holders ofBombardier Inc.          $     (108)  $     (251)  $     (516)  $   (1,022)Preferred share dividends,including taxes                  (8)         (14)         (27)         (32)----------------------------------------------------------------------------Net loss attributable tocommon equity holders ofBombardier Inc.          $     (116)  $     (265)  $     (543)  $   (1,054)----------------------------------------------------------------------------Weighted-average dilutednumber of common shares(in thousands of shares)  2,194,868    2,194,304    2,195,379    2,212,547----------------------------------------------------------------------------Diluted EPS (in dollars)  $    (0.05)  $    (0.12)  $    (0.25)  $    (0.48)----------------------------------------------------------------------------Computation of adjusted EPS============================================================================Fourth quarters              Fiscal yearsended December 31         ended December 31----------------------------------------------------------------------------2017         2016         2017         2016----------------------------------------------------------------------------Adjusted net income (loss)$       51   $     (141)  $       63         (268)Net (income) lossattributable to NCI               1            8           37          (41)Preferred share dividends,including taxes                  (8)         (14)         (27)         (32)Dilutive impact of CDPQconversion option                (2)           -            -            -----------------------------------------------------------------------------Adjusted net income (loss)attributable to equityholders of BombardierInc.                     $       42   $     (147)  $       73   $     (341)----------------------------------------------------------------------------Weighted-average adjusteddiluted number of commonshares (in thousands ofshares)                   2,311,057    2,194,304    2,264,722    2,212,547----------------------------------------------------------------------------Adjusted EPS (indollars)(1)              $     0.02   $    (0.07)  $     0.03   $    (0.15)----------------------------------------------------------------------------(1) Refer to the Non-GAAP financial measures section in the MD&A of theCorporation's financial report for the fiscal year ended December 31,2017 for definitions of these metrics and reconciliations to the mostcomparable IFRS measures.

Reconciliation of adjusted net income (loss) to net loss and computation ofadjusted EPS============================================================================Fourth quarters ended December 31----------------------------------------------------------------------------2017                 2016----------------------------------------------------------------------------(per share)          (per share)----------------------------------------------------------------------------Net loss                           $ (109)              $ (259)Adjustments to EBIT related tospecial items(1)                      66   $     0.03      30   $     0.01Adjustments to net financingexpense related to:Loss on repurchase of long-termdebt(1)                             23         0.01      86         0.04Accretion on net retirementbenefit obligations                 19         0.01      16         0.01Net change in provisions arisingfrom changes in interest ratesand net loss on certainfinancial instruments               57         0.02     (12)       (0.01)Tax impact of special(1) and otheradjusting items                       (5)        0.00      (2)        0.00----------------------------------------------------------------------------Adjusted net income (loss)             51                 (141)Net loss attributable to NCI            1                    8Preferred share dividends,including taxes                       (8)                 (14)Dilutive impact of CDPQ conversionoption                                (2)                   -----------------------------------------------------------------------------Adjusted net income (loss)attributable to equity holders ofBombardier Inc.                   $   42               $ (147)============================================================================Weighted-average adjusted dilutednumber of common shares (inthousands)                                  2,311,057            2,194,304============================================================================Adjusted EPS                                $     0.02           $    (0.07)============================================================================Reconciliation of adjusted EPS to diluted EPS (in dollars)============================================================================Fourth quarters endedDecember 31----------------------------------------------------------------------------2017           2016----------------------------------------------------------------------------Diluted EPS                                      $     (0.05)   $     (0.12)Impact of special(1) and other adjusting items          0.07           0.05----------------------------------------------------------------------------Adjusted EPS                                     $      0.02    $     (0.07)============================================================================Reconciliation of adjusted net income (loss) to net loss and computation ofadjusted EPS============================================================================Fiscal years ended December 31----------------------------------------------------------------------------2017                 2016----------------------------------------------------------------------------(per share)          (per share)----------------------------------------------------------------------------Net loss                           $ (553)              $ (981)Adjustments to EBIT related tospecial items(1)                   426   $     0.19     485   $     0.22Adjustments to net financingexpense related to:Loss on repurchase of long-termdebt(1)                           23         0.01      86         0.04Accretion on net retirementbenefit obligations               78         0.04      66         0.03Net change in provisionsarising from changes ininterest rates and net loss(gain) on certain financialinstruments(1)                    95         0.04      63         0.03Interest portion of gainsrelated to special items(1)       11         0.01      26         0.01Transaction costs related tothe conversion option embeddedin the CDPQ investment(1)          -            -       8         0.01Tax impact of special(1) andother adjusting items              (17)       (0.01)    (21)       (0.01)----------------------------------------------------------------------------Adjusted net income (loss)             63                 (268)Net (income) loss attributable toNCI                                 37                  (41)Preferred share dividends,including taxes                    (27)                 (32)----------------------------------------------------------------------------Adjusted net income (loss)attributable to equity holders ofBombardier Inc.                   $   73               $ (341)============================================================================Weighted-average adjusted dilutednumber of common shares (inthousands)                                  2,264,722            2,212,547============================================================================Adjusted EPS                                $     0.03           $    (0.15)============================================================================(1) Refer to the Consolidated results of operations section in the MD&A ofthe Corporation's financial report for the fiscal year ended December31, 2017 for details regarding special items.Reconciliation of adjusted EPS to diluted EPS (indollars)============================================================================Fiscal years endedDecember 31----------------------------------------------------------------------------2017           2016----------------------------------------------------------------------------Diluted EPS                                      $     (0.25)   $     (0.48)Impact of special(1) and other adjusting items          0.28           0.33----------------------------------------------------------------------------Adjusted EPS                                     $      0.03    $     (0.15)============================================================================(1) Refer to the Consolidated results of operations section in the MD&A ofthe Corporation's financial report for the fiscal year ended December31, 2017 for details regarding special items.Reconciliation of free cash flow usage to cash flows from operatingactivities============================================================================Fourth quarters           Fiscal yearsended December 31      ended December 31----------------------------------------------------------------------------2017       2016        2017       2016----------------------------------------------------------------------------Cash flows from operatingactivities                      $  1,237   $    823    $    531   $    137Net additions to PP&E andintangible assets                   (365)      (327)     (1,317)    (1,201)----------------------------------------------------------------------------Free cash flow (usage)           $    872   $    496    $   (786)  $ (1,064)============================================================================

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation's objectives, guidance, targets, goals, priorities, 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; competitive position; the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation's business and operations; available liquidities and ongoing review of strategic and financial alternatives; the completion, anticipated timing of the transaction with Airbus SE (Airbus) described herein and the receipt of regulatory and other approvals required with respect to this transaction and the anticipated timing thereof; the governance, funding and liquidity of C Series Aircraft Limited Partnership (CSALP); the impact and expected benefits of the transaction with Airbus described herein, on our operations, infrastructure, capabilities, development, growth and other opportunities, geographic reach, scale, footprint, financial condition, access to capital and overall strategy; and the impact of such transaction on our balance sheet and liquidity position.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "shall", "can", "expect", "estimate", "intend", "anticipate", "plan", "foresee", "believe", "continue", "maintain" or "align", the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

By their nature, forward-looking statements require management 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 forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release in relation to the transaction with Airbus discussed herein include the following material assumptions: the satisfaction of all conditions of closing and the successful completion of the transaction within the anticipated timeframe, including receipt of regulatory (including antitrust) and other approvals; the fulfillment and performance by each party of its obligations pursuant to the transaction agreement and future commercial agreements and absence of significant inefficiencies and other issues in connection therewith; the realization of the anticipated benefits and synergies of the transaction in the timeframe anticipated; our ability to continue with our current funding plan of CSALP and to fund, if required, any cash shortfalls; adequacy of cash planning and management and project funding; and the accuracy of our assessment of anticipated growth drivers and sector trends. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the Strategic Priorities and Guidance and forward-looking statements sections for each reportable segment in the MD&A of the Corporation's financial report for the fiscal year ended December 31, 2017.

With respect to the transaction with Airbus discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with the failure to receive or delay in receiving regulatory (including antitrust) or other approvals or otherwise satisfy the conditions to the completion of the transaction or delay in completing the transaction and uncertainty regarding the length of time required to complete the transaction; changes in the terms of the transaction; the failure by either party to satisfy and perform its obligations pursuant to the transaction agreement and future commercial agreements and/or significant inefficiencies and other issues arising in connection therewith; the impact of the announcement of the transaction on our relationships with third parties, including commercial counterparties, employees and competitors, strategic relationships, operating results and businesses generally; the failure to realize, in the timeframe anticipated or at all, the anticipated benefits and synergies of the transaction; our ability to continue with our current funding plan of CSALP and to fund, if required, the cash shortfalls; inadequacy of cash planning and management and project funding.

Certain other factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with "Brexit", the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy (including potential changes to or the termination of the existing North American Free Trade Agreement between Canada, the U.S. and Mexico currently in discussion); increased competition; political instability and force majeure events or natural disasters), operational risks (such as risks related to developing new products and services; development of new business; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution; pressures on cash flows and capital expenditures based on project-cycle fluctuations and seasonality; our ability to successfully implement and execute our strategy and transformation plan; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers and suppliers; human resources; reliance on information systems; reliance on and protection of intellectual property rights; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the Management's Discussion and Analysis (MD&A) of the Corporation's financial report for the fiscal year ended December 31, 2017. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the Guidance and forward-looking statements sections in Overview, Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services, and Transportation in the MD&A of the Corporation's financial report for the fiscal year ended December 31, 2017.

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. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. In addition, there can be no assurance that the proposed transaction with Airbus will occur or that the anticipated strategic benefits and operational, competitive and cost synergies will be realized in their entirety, in part or at all. The forward-looking statements set forth herein reflect management's expectations as at the date of this press release 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. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Contacts:
Bombardier Inc.
Simon Letendre
Senior Advisor, Media Relations and Public Affairs
+514 861 9481
www.bombardier.com

Bombardier Inc.
Patrick Ghoche
Vice President, Investor Relations
+514 861 5727
www.bombardier.com