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## Bombardier Transportation 

## Restructuring initiative 

On March 16, 2004, the Board of Directors approved a proposed restructuring initiative to reduce the cost structure in the Corporation’s transportation segment. This restructuring ini- tiative was launched as a result of significant plant manufacturing overcapacity. 

As a result of an in-depth assessment of global industrial locations, which covered workload, operating efficiency, technical capability, prospects for future contracts and detailed economic evaluations, Bombardier proposes to reduce its global workforce by approximately 6,600 positions, 1,500 of which are contractual employees. In addition, seven production sites in five European countries have been identified for closure over the next two years and the initial phase of a site improvement program will be launched at five other European locations to increase opera- tional efficiency by reducing inventory levels. Bombardier Transportation will also pursue a procurement integration initiative to increase synergies, reduce costs and better coordinate materials procurement. 

Bombardier Transportation’s restructuring initiative will result in restructuring charges and net cash outflows expected to be as follows for the fiscal years ended January 31: 

<img src='content_image/114797.jpg'>

$^{(1)}$Includes lease termination costs and environmental costs, as well as other costs. 

## Analysis of results 

<img src='content_image/114798.jpg'>

$^{(1)}$Includes all maintenance, operations and service contracts, excluding those for heavy overhaul. 

$^{(2)}$Includes selling, general and administrative and research and development expenses. 

## Segmented revenues by geographic region 

<img src='content_image/114799.jpg'>

