Bombardier Flipping

current market drivers

12

Bombardier Business Aircraft | Market Forecast 2011-2030

MSCI World Index literally doubled, mainly driven by growing prices for oil, natural resources, and commodities. Most of these gains were lost in a single year, as, between 2007 and 2008, the MSCI World Index fell 42%. Business aircraft orders stalled at the same time the MSCI World Index plummeted.

fundamentals of the business jet industry are expected to remain unchanged. Wealth Creation Worldwide demand for business jets is highly correlated with wealth creation. The Morgan Stanley Capital International (MSCI) Index is an aggregate stock market index, based on representative securities listed in major financial exchanges around the world. The MSCI World Index is a good estimate of wealth creation. From 2002 to 2007, the

Basically, in most advanced economies, output is still far below potential, while in emerging market economies the crisis left no lasting wounds. The significant economic downturn of 2008- 2009 resulted in a major short-term reduction in demand for business jets. As expected, this demand, as measured by orders, is increasing with the resumption of global economic growth. This trend is expected to translate into a sustained recovery in demand for business jets. The sound

MSCI World Index Calendar years, 2001-2010

MSCI Index Evolution By Region 2002 = 100, Calendar years, 2002-2011

2002 (base)

2007 (at peak)

April 2009

April 2011

2,000

North America Europe Latin America Russia India

105

144

100

176

100

245

122

157

1,500

100

668

384

628

188

311

100

567

100

699

287

523

1,000

185

232

367

China Middle East Asia Pacific Africa

100

327

452

100

605

144

199

100

250

223 113

272 151

500

100

593

World

100

201

Sources: MSCI World Index from Morgan Stanley.

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Sources: MSCI World Index from Morgan Stanley.