Bombardier Transportation
Presentation to GoG
                              9th March 2007 at Gandhinagar
                                               Rajeev Jyoti
                             President & Managing Director
                            Bombardier Transportation India
Bombardier Inc
   Corporate office based in Montréal, Canada
   Workforce of some 55,800 people worldwide as at January 31,
    2006
   Revenues of $14.7 billion US for fiscal year ended
    January 31, 2006
   More than 94% of revenues generated outside Canada
   Listed on Toronto Stock Exchange (BBD)
                                                         2
Overview
                               Bombardier: a diversified company
         Transportation                                             Aerospace
              45%                                                      55%
                               Breakdown of revenues by business segment
year ending 31 January, 2006                                               3
Bombardier Transportation
Overview - A full spectrum of railway solutions
     Rolling               Propulsion         Bogies             Services        Total Transit       Rail Control
     Stock                 & Controls                                              Systems            Solutions
   Metros                Traction         Portfolio of       Fleet              Automated          Integrated
                           converters        products            management          people              control
   Light rail
                                             which match                             movers              systems
    vehicles              Auxiliary                            Spare parts
                                             the entire
                           converters                            and logistics      Advanced           Onboard
   Commuter                                 range of rail
                                                                 management          rapid transit       computer
    trains                Traction          vehicles
                                                                                                         systems
                           drivers                              Vehicle            Light
   Regional
                                                                 refurbish-          rapid transit      Automatic
    trains                Control and
                                                                 ment &                                  train
                           communi-                                                 Turnkey
   Intercity trains                                             overhaul                                protection
                           cation                                                    systems
                                                                                                         and
   High-speed                                                  Component
                                                                                    Automated           operation
    trains                                                       refurbish-
                                                                                     monorail
                                                                 ment &                                 Wayside
   Locomotives                                                  overhaul                                interlocking
                                                                                    Operations &
                                                                                     maintenance         and
                                                                Technical
                                                                                     related to          equipment
                                                                 support
                                                                                     systems
                                                                                                4
       Market – Bombardier remains the market leader in the rail
       industry for the 5th consecutive year
           Average market share 2003-2005
           Bombardier relevant market,                                                                                                BT
                                                                                                                        Division
           based on worldwide orders*                                                                                               position
                                                                                                                     Locomotives         #1
                                                                                                                     Commuter            #1
                                                                              21%                                    Regional            #1
                            Others                                                                                   High Speed &
                                                                                                                     Intercity           #2
                        • AnsaldoBreda
                                  • Rotem
                                   • Talgo
                                     • CAF
                                             46%          US$ 36                                                     Metros              #1
                                 • Stadler
                     • Alcatel, Invensys
                • Service (OEMs, etc.)
                                                           billion                   17%
                                                                                                                     LRVs                #1
                     • European freight                                                                              Services            #1
                   • Hitachi, Kawasaki,
                               • MELCO
                                 • Others                                                                            Signalling          #6
                                                                    16%                                              Propulsion          #1
                                                                                                                     Bogies              #1
                                                                                                Bombardier also leads almost
                                                                                              every segment of the rail market
* The worldwide rail market relevant to Bombardier is the market accessible to open bid competition, excluding the      5
  North American freight locomotive and wagon markets and electrification.
Market Achievements – Responsible for the most
prestigious rail projects recently awarded
 Bombardier Transportation is the railway industry world market
  leader, the company with the best customer footprint, with products
  delivered to more than 60 countries around the world and holding an
  installed base of approximately 100,000 cars and locomotives.
 Bombardier won last year the most relevant projects worldwide
   • China: Shanghai metro – 306 Bombardier Movia metro cars; $US326
     million order
   • South Africa: Gautrain – TTS system including 96 Bombardier
     Electrostar trains; US$1,65 billion order
   • France: 372 Paris Ile-de-France commuter trains; US$3,4 billion order
     (total)
   • Spain: 100 TRAXX freight locomotives for RENFE; US$549 million order
   • Germany: selected by DB for the delivery of 321 Talent 2 trains; US$1,6
     billion order (estimated)
   • Global: Achieved #1 position in ERTMS on-board and wayside
                                                            6
Bombardier in India
Bombardier Transportation in India –
                                                                     Vadodara Manufacturing facilities
growing organisation
Bombardier, a 35-year old presence in India
Locations
   Bombardier Transportation propulsion and controls plant in
    Baroda, State of Gujarat
   Engineering centre with Infotech in Hyderabad.                    RCS offices in Vadodara
   Headquarters in New Delhi and regional offices at Mumbai,
    Kolkata and Chennai.
   A total of about 500 engineering and manufacturing staff
The production
   Manufacture & supply of existing rolling stock components like
    High Voltage Tap-changers and Traction duty Loco Circuit
    Breaker (VCB); Power Converters; Auxiliary Converters;
    Control Electronics, Transformers and Converters                  Engineering Centre, Hyderabad
Certified with ISO 9001, ISO 14001 (Environment) and
OHSAS 18001 (Health & Safety), Bombardier
Transportation in India shows its clear vision of providing
the best quality systems using the best procedures.
                                                                            8
State-of-the-art railway technologies in India
Locomotives manufacturing
   Bombardier’s WAP5 and WAG9
    locomotives, supplied since 1993 in
    partnership with Chittaranjan
    Locomotive Works (CLW), are
    successful Transfer of Technology
    (ToT) cases.
   Components manufacturing was
    localised with the help of local suppliers.
                                                  9
                                                                                                                                                            Division :
       Successfully managed BT India’s evolution thru’ various                                                                                             Propulsion &
       technology cycles on IR                                                                                                                             Controls-PPC
                        Managing & upgrading technology to support IR’s modernization plans……
                                                                    Propulsion & Controls
                                                                       Tap Changers
                                                                       Air Blast Circuit Breakers
1996
                                                                    Air Blast Circuit Breaker
                                                                    for Conv. Locos & EMUs         Tap Changers for
                                                                                                   Conventional locos
                                                                                                                                                  BT India manufacturing facility
                                                                    Electro-mechanical systems                                                      set up green field in 1996
                  ……. And operationalize BT India strategy to become a ‘Full Range Transportation
                                                    Company’
                                                                     Propulsion & Controls
                 Tap Changers                                       Main & Aux Converters                                    IGBT Aux Converter
                 Vacuum Circuit Breakers                            Control Electronics                                      180KVA Converter
                                                                     Transformers                                             25KVA Inverter
2003
                                                                                                Control Electronics
             Vacuum Circuit Breakers
                                                                                                                                                          25KVA Inverter
                                       Tap Changers for
                                       Conventional locos
                                                                Main Conv         Aux Conv       Transformers               IGBT Aux   180KVA Converter
                                                                      GTO based Electronics+                                   IGBT Based Electronics +
         Electro-mechanical Systems                                     Electrical Systems                                        Electrical10Systems
          BT India’s strategic shift in profile
          Through participation in the 3-phase ToT
    E - Loco Technology
                                                                   ABCB
                                                                                                                                                          DC - Loco
FROM
                              Arno
                                           Aux. Load
                                                                  Tap
  BT                        Converter                           Changer                               AC-DC
Product                         G                                                                                      DC Traction
                                                                                                                        Motors
1996
                                 M                                                                                                   M
                                                                            Transformer
              conventional tap-changer tech.                                                                  state-of-the-art power electronics
              from component manufacturer                                                                 complete propulsion systems supplier
              increased contribution per E-loco from 2.2 MINR                                                                                       66 MINR
                                                                        VCB
                                                                                                                                                           AC - Loco
  TO
                                                   Electronic          Pre                Vehicle                  Electronic
                                                                   Assemblies
                                                                                                                                         Aux. Load
  BT                                                   SR                                 Control                     BUR
                                                                                                  0
                                                                                        1                  5
                                                                                          a1   Vcc1   b1
                                                                                        2                  6
Product                       AC
                                                                                        3
                                                                                        4
                                                                                          a2
                                                                                          a3
                                                                                          a4   GND
                                                                                                      b2
                                                                                                      b3
                                                                                                      b4
                                                                                                           7
                                                                                                           8
                            Traction                                                              0
                             Motors
1999                                   M                                                                                                 M
                                                                                Transformer
                                                                                                                                         11
                                                                                                                                          Division :
       Successfully extended ‘Services’ offering to IR thru’                                                                              Services
       deeper involvement in IR’s maintenance practices                                                                                     (SER)
                                           BT India evolution from a ‘spare parts’ supplier……..
                                                                            Services
                                                           Spare parts for Tap Changers
1996
                                                                          Tap Changers for
                                                                          Conventional locos
                                                                                                                                    BT India Services factory
                                                              Discrete product spare parts
                                ……. To a ‘one-stop’ shop for IR’s equipment maintenance needs
                                                                        Services
              Composite Annual and                         Revamping facility for                         Deeper interactions with IR
               Intermediate                                  extending the Tap Changer                       loco sheds to improve
               Overhauling kits to IR                        life cycle by 50% at half the                   maintenance practices and
2003
                                                             cost.                                           create efficient shed layouts
           Annual Overhauling kit for Tap Changer
                                                                Old Tap Changer   Revamped Tap Changer             IR’s loco shed
       Material & Logistic solutions                        Fully product refurbishment                       Informal Consultancy
                                                                                                                        12
                                                                                                                                                Division :
       Successfully managed BT India’s evolution thru’                                                                                         Rail Control
       various technology cycles on IR                                                                                                        Solutions- RCS
                               Managing technology to support IR’s modernization plans……
                                                             Rail Control Solutions
                                                     Audio Frequency Track Circuits (AFTC)
                                                     Electro-mechanical Relays
                                                     Software Development Center (SDC)
1996
                                                   Electromechanical
                                                                           AFTC    SDC for Signaling applications
                                                         Relays
                                                                                                                                        BT India Rail Control Solutions
                                                                                                                                                     Office
                                                    Electro-mech Systems & Software
              ……. And operationalize BT India strategy to become a ‘Full Range Transportation
                                                Company’
                                                        Rail Control Solutions
            Coded AFTC                                Traffic Mgmt System Project                            Software Development for
            Electro-mechanical                        Local competencies for TMS                              Train Control applications
             Relays
2003
                                                                                                                    Train Control & Diagnostic System
           Electromechanical                                                      TMS Server room                          Project at Mannheim
                 Relays          AFTC              TMS Control room at Mumbai       at Mumbai
       Electro-mechanical Systems                  Hi Tech Software driven Project                              Software for13rail vehicles
14
BT India
Consistent focus on organization wide QHSE initiatives
   All Divisions have ISO certification.
     •   PPC: ISO 9000:2000
     •   RCS: ISO 9001:1994
   Environment       Management     System         ISO:14001
    Certification for Maneja site
   OHSAS 18001 (Occupational Health and Safety
    Assessment Series) certification for Maneja site.
   Multiple Projects undertaken focusing on saving Power,
    Water & Paper and sustaining natural resources.
                                                                15
Bombardier objectives for the Indian Market
Bombardier India-Vision
h Widen product range to become full range transportation
  company.
h Introduce state-of-the-art technology and business
  concepts in the areas of Propulsion & Controls, Rail
  Control Solutions & Services support for Indian market.
h To become important Bombardier Transportation Group
  internal source for :-
            0Software - Rail Control Solutions and
             Propulsion applications.
            0Products / components.
                                                            “Quality is a way of life. It
                                                            permeates every action, every
h Recognition as domestic company committed to India’s      decision, and it is reflected in
                                                            our products, services, and
  further development in Rail Transportation.               employees. We owe our market
                                                            leadership to the reputation
                                                            and the customer relations we
h Committed to enhance the quality of life and the          have built over the years.”
  environment in the communities we serve.
                                                                   17
Bombardier objectives for the Indian Market -
Reach all market segments with latest proven products to
place rail transportation in India amongst the worlds greatest
                               Opportunities & projects
                         Mass Transit           Indian Railways
                     Metro projects in
                                              Continue current
                     major cities: Delhi,
                                              supplies:
                     Mumbai, Hyderabad,
                                               Propulsion,
                     Bangalore, Kochi,
                                              Signalling, Services
                     Chandigarh
                                              Introduce new
                     Promote full systems
                                              products:
                     integration projects,
                                              - freight locomotives
                     E&M: - Delhi airport
                                              - high-speed EMUs
                     rail link
                                              - ERTMS
                                                                           Partnerships
          Localization                       ToT
                                                                           Associations
                                                                      18
Mass Transit projects in India
MASS TRANSIT
Bombardier Movia metros are the preferred choice
 Bombardier is the number ONE supplier of metros worldwide, more
  than 1,400 last generation Bombardier Movia cars ordered
 Bombardier supplies key metro operators in the world:
  New York, Montreal, Toronto, Paris, London, Berlin, Bucharest,
  Stockholm, Shanghai, Shenzhen, Guangzhou and many others.
                                                        20
Bombardier MOVIA family –
The preferred choice of experienced metro operators
                                       High capacity metro units, capacity to
                                        carry more than 2,500 people per unit
                                       Modularity of all systems
                                       Customer choice on performance,
                                        dimensions, comfort levels, special
                                        features; met by a system of validated
                                        modules that fit together
                                       Wide range of dimensions to fit for
                                        many systems
 Modular design gives room for        Predictable operating costs incl.
  innovation                            spares and maintenance
 Tailored for any local climate       Enhanced quality through use of proven
                                        systems
  conditions
                                       Short lead times through use of proven
 Modular assembly technology makes     technologies
  MOVIA fit for local assembly and
                                       Designed for high passenger loads
  production
                                                              21
MASS TRANSIT
Advanced solutions for projects as “Delhi airport rail link”
   Bombardier Electrostar vehicles, over 1,600 cars of this family already
    delivered.
   Electrostar vehicles offering operators top reliability levels. In the UK these
    trains are managing more than the double of the average for comparable
    electric multiple units.
   Bombardier CITYFLO signalling solutions.
   World number ONE provider of Total Transit Systems solutions.
                                                                22
Advanced solutions for Delhi airport rail link –
an example to follow Gautrain Express, South Africa
      Gautrain Express will place rail transportation in South Africa amongst
      the worlds best
  •   80-km Gautrain system linking Johannesburg, Tshwane and the
      International Airport. A US$1,65 billion order (Bombardier share).
  •   Public Private Partnership scheme, includes financing, design-build,
      operation and maintenance.
  •   96 Bombardier Electrostar 4 car train units for speeds of 160km/h
  •   Bombardier CITYFLO 250 traffic management system
  * Trademark(s) of Bombardier Inc. or its subsidiaries         23
Indian railways projects
INDIAN RAILWAYS
High-power locomotives for freight operations
    Indian Railways Freight corridors – IR
     are developing a project to improve fright
     rail operations in the country, 600 new
     high-power locomotives will be required.
    Bombardier locomotives are the most
     successful, thousands of units are
     already ordered.
    Bombardier is the largest producer of
     locomotives in Europe and the largest
     producer of electric locomotives
     worldwide
                              24%
              46%
                               24%
                       6%
                     Others
                                                  25
    Average European market share 1997-2005*
Bombardier Locomotives
All market segments from Heavy Haul to Very High Speed
80                       ~140                   Speed of Operation           200 250 –350 km/h
      Freight                          Freight & Passenger (Regio, IC)            Passenger
 Heavy
  HeavyHaul
        Train                        AC, MS, DE, DC for 140, 160, 200 km/h        HS & VHS*
                                                                                  AVE S-102
  IORE Kiruna                                                                      (for 330 km/h)
     Blue Tiger                               TRAXX platform
                                              Standard locomotives
                                                                                  AVE S-130
                                                                                   (for 250 km/h)
* in collaboration with Patentes Talgo S.A.
                                                                             26
INDIAN RAILWAYS –
Transform intercity transportation in India with new high-
speed electric multiple units from Bombardier
             Bombardier’s portfolio    High-speed train (200 km/h)
              comprises 20 intercity
              and high speed                              Vehicles ordered: 320 cars
              products, including                         Key features and advantages:
AVE           seven high-speed                             - Based on proven vehicle
              power-heads                                   platform
                                                           - Extra-wide carbody
                                                           - The only EMU fully
             Bombardier is the                             manufactured in China
              manufacturer having
TGV
              contributed to the
              largest number of high    Very high-speed design study (>300 km/h)
              speed projects
              worldwide:                                  Status: Design study with
                - Spain: AVE 102                           leading Italian designer Zagato
ICE             - France: TGV                             Key features and advantages:
                - Germany: ICE family                      - Aerodynamic exterior design
                - Italy: ETR 500                            with minimal noise generation
                - China: Xinshisu                          - Flexible interior design with
                                                            maximum passenger comfort
                - America: Acela
ETR500                                                     - High seating capacity
                                                                   27
INDIAN RAILWAYS
New signalling systems to improve operations and
increase safety
   Bombardier proposes Indian Railways its highly advanced
    ERTMS/ETCS solutions
    • Bombardier pioneered ERTMS being the first supplier in the world to
      introduce ERTMS in commercial service, Switzerland in 2004.
    • Bombardier Transportation has provided ERTMS technology to several
      countries, including Korea (800 km) and Taiwan (1,200 km). To date
      we have received contracts to equip almost 6,000 km of track with
      ERTMS and have delivered more than 30,000 balises.
    • Bombardier leads the ERTMS market segment, both in way-side (31%
      global market share) and on-board (40% global market share).
    ERTMS onboard market share (# of vehicles equipped)                ERTMS wayside market share (# of Route KM equipped)
            26%                                           Bombardier      29%                         31%
                                                          Alstom
                                         40%
                                                          Alcatel
      0%                                                  Siemens
      3%                                                  Invensys      2%
       4%
                                                          Ansaldo
                                                                             14%                     14%
                                                                                                            28
                   27%                                                                  10%
                         Bombardier in India –
Winning strategy based on four building blocks
  Products – Localization – TOT - Partnerships
Bombardier in India – Winning strategy based on four
building blocks:
Products - TOT – Localization – Partnerships
    Bombardier offers in India only its the very best global products,
     designed for the specific needs of the operators in India
    Bombardier employs superior design and offers vehicles with high
     Reliability and Availability giving the passengers a great travelling
     experience and the operators optimal operational costs. Some
     examples:
      •   SNCF in France increased passengers by 6% in its regional operations
          after having introduced new trains, with the Bombardier AGC as the
          “star” train.
      •   Virgin in the UK increased passengers by 72% in some of its routes,
          which demonstrates the success of Bombardier Virgin Voyager.
      •   Bombardier Electrostar trains are also best in class, they are offering
          operators the double of the average reliability levels for Electric Multiple
          Units in the UK.
                                                                       30
Bombardier in India – Winning strategy based on four
building blocks:
Products - TOT – Localization – Partnerships
Transfer of Technology
   Bombardier’s WAP5 and WAG9 locomotives,
    supplied since 1993 in partnership with
    Chittaranjan Locomotive Works (CLW), are
    successful Transfer of Technology (ToT) cases.
   Components manufacturing was localised with
    the help of local suppliers.
                         Imported                                220
                                                                             ToT and localization
              Localisation
    Cost per locomotive, MINR                                                enabled a 70% reduction in
                                                                             the price of a locomotive,
                        last phase            80                             between 1993 and 2003.
                                                                                        31
                                     0   50    100   150   200         250
Bombardier in India – Winning strategy based on three
building blocks: TOT – Localization – Partnerships
Localization
   Bombardier projects enabled Indian Industry to become stronger,
    opening export opportunities.
     •   Local Production of high quality electrical, mechanical and electronic components.
         Indian operations became front run suppliers to Bombardier’s global projects.
     •   Development of advanced software for global projects. Indian resources and
         products have already been associated with signalling projects in Australia,
         Germany, Switzerland, Sweden and Denmark.
   Bombardier Transportation is already developing in India – at the
    moment mainly for export purposes – the technology associated with
    the products required by the market, namely:
     •   Hyderabad engineering centre is doing vehicles design engineering of the new
         Bombardier Movia vehicles for London Underground; Bombardier Electrostar trains
         for the Gautrain project and the high-speed Electric Multiple Units for China.
     •   The highly advanced Bombardier CITYFLO 450 signalling system for Madrid Metro
         is being developed with the cooperation of Bombardier Indian operations
                                                                         32
Bombardier in India - Strategy based on four building
blocks: Products – Localization – TOT - Partnerships
 Partnerships
    Mass Transit, TTS projects
      • Partnerships for specific projects are being established with other
        companies in India, joint expressions of interest were submitted together
        with Reliance Energy of India for Hyderabad and Chandigarh mass
        transit projects
    Associations with Indian Railways
      • Bombardier is considering an association with Indian Railways under a
        Public Private Partnership scheme to create a local manufacturing plant
        of locomotives
    Other projects
      • Associations to localise the manufacturing of other rail products for
        Indian market are also being considered.
                                                                 33
Bombardier poised to place rail transportation in
India amongst the worlds greatest
                                         34