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## Bombardier Capital 

The following table presents total finance receivables and assets under operating leases before allowance for credit losses as at January 31: 

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$^{(1)}$This represents financing provided to the Corporation’s former recreational products segment (which will be referred to as BRP in this MD&A). 

During fiscal year 2004, BC continued to focus on leveraging its core business competencies in inventory finance, while continuing with the reduction of its wind-down portfolios. Substantial progress was made in reducing the wind-down portfolios, resulting in an improved overall risk profile for BC. BC intends to continue with the reduction of its wind- down portfolios in the coming year. Emphasis will continue to be placed on lowering the overall risk profile, strengthening the balance sheet and controlling operating expenses. 

Finance receivables and assets under oper- ating leases before allowance for credit losses amounted to $4.9 billion as at January 31, 2004, compared to $8.5 billion as at January 31, 2003. This 43% decrease is primarily due to the continued reduction in the wind-down 

portfolios totalling $3.0 billion, particularly the business aircraft and receivable factoring portfolios, as well as a decline in the inventory finance portfolio and the commercial aircraft interim financing portfolio. The strengthening of the Canadian dollar compared to the U.S. dollar accounted for approximately $680 million of the decrease in finance receivables and assets under operating leases. 

BC also manages a railcar leasing portfolio, accounted for off-balance sheet, totalling $864 million, and other off-balance sheet port- folios totalling $84 million as at January 31, 2004, compared to $1.0 billion and $179 mil- lion, respectively, as at January 31, 2003. 

Average assets under management (defined as average finance receivables and assets under operating leases, as well as the railcar 

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leasing and other off-balance sheet portfolios discussed above) amounted to $7.3 billion as at January 31, 2004, compared to $11.4 billion as at January 31, 2003. This decrease is mainly due to the reduction in the wind-down port- folios, particularly the receivable factoring and business aircraft portfolio, as well as the strengthening of the Canadian dollar compared to the U.S. dollar. 

BC’s segmented revenues amounted to $681 million for fiscal year 2004, compared to $895 million in fiscal year 2003. The decrease in segmented revenues is mainly due to the reduction in the wind-down portfolios and a stronger Canadian dollar compared to the U.S. dollar. Additional revenues from the securitized floorplan receivable portfolios, which were accounted for off-balance sheet for the first four 

