2. Adding Value to the Business Jean-Luc Augustin Vice-President Human Resources Bombardier Transportation Jean-Luc Augustin Vice-President Human Resources Bombardier Transportation

3. Products and services A full spectrum of railway solutions Services Rail control solutions Transit security solutions Transportation systems Propulsion & controls Rail vehicles Bogies  Fleet management  Operations & maintenance  Material solutions  Vehicle refurbishment  Component reengineering  Light rail vehicles  Metros  Commuter trains  Regional trains  Intercity trains  High speed Trains  Locomotives  Traction converters  Auxiliary converters  Traction drives  Control and communication  Monorail systems  APM systems  Light rail systems  ART systems  Metro systems  Intercity systems  Portfolio to match entire range of rail vehicles  Full scope of service over the lifetime of a bogie  Integrated control systems  Automatic train protection and operation: wayside and onboard  Interlocking systems  Wayside equipment  Services  Train-based broadband network  Sensor systems  Security systems recording  Security system viewing and event management

4. Bombardier Transportation around the world Headquarters & Major Sites

5. 2006  Need for change (“Traditional vs Business”)  Several attempts of Transformation  Restructuring

6. The “People” challenge:  Attracting  DevelopingTALENT  Retaining in a tight Labour Market within a growing Business Context

7. The customer feedback: HR to be:VISIBLE CREDIBLE and to DELIVER MORE VALUE TO THE BUSINESS

8. A CALL FOR ACTION The external benchmark:

9. Our Response: World Class by 2010

10. We will drive efficiency and effectiveness through two key initiatives PEOPLE Acquire talent Develop talent Develop organisational capability (competency) Create a boundary-less organization WHAT we doHOW we do it HR TRANSFORMATION Implement an improved HR Service Delivery Model

11. Our HR Model to achieve excellence: HRBP-SSO-COE integration Centers of Expertise World class delivery on PEOPLE STRATEGY SSO to be a world-class operations ONE HR ONE HR HR Business Partners Integrated HR IS infrastructure Shared Services

12. World Class HR Next steps:  Call Centers / ESS / MSS  HRBP role  Asia

13. World Class HR Business Partners Proactive, from diagnosis to action, “trusted advisor”, someone who challenges, drive leadership culture A “ delivery engine” for all other HR processes Reliable, responsive, transparent, easy to access/ easy to use, cost effective, stable, meets the SLAs Excellence in Talent processes Talent acquisition proactive for key talent (eg graduates, engineers), fast reaction to fill gaps Talent management pipelines for key positions, career development for individuals Talent development leadership, management, technical and behavioural skills 13 World Class HR for BT

14. The new model will change how HR service will be accessed by employees Result = I get the answer I need quickly and the support I get is from the right level to meet my needs Result = I get the answer I need quickly and the support I get is from the right level to meet my needs I need: an answer to an HR query

15. Way Forward  The Employment Value Proposition  Measure People effectiveness and efficiency  Leadership, leadership, leadership  Engagement  Support the operational excellence

16. Our HR Vision Visible, Credible and Added Value Business Partners

17. A solid system solution is essential to enable a world class HR organization Interface to all key systems supporting Talent processes with essential and accurate data Access to relevant, timely and accurate data across borders supporting the decision making process of BT leaders. One system for all data management processes Supporting a centralized organization through global access & authorizations

18. The starting situation forced us to review the system approach Where we want to be PA: One common system containing all HR master data interfacing to other key systems – replacing BTs currently Global SAP HR Payroll: The accurate and legally compliant payment of all our employees is stable secured. PA: One common system containing all HR master data interfacing to other key systems – replacing BTs currently Global SAP HR Payroll: The accurate and legally compliant payment of all our employees is stable secured. Where we started (2008) PA: More than 50 different systems were used to administer employee master data. One global system (SAP), not interfaced to any other system, consolidates all master data on company level Payroll: 11 countries required Payroll replacement over the next 4 years for an amount of 9.5 Mio. €. PA: More than 50 different systems were used to administer employee master data. One global system (SAP), not interfaced to any other system, consolidates all master data on company level Payroll: 11 countries required Payroll replacement over the next 4 years for an amount of 9.5 Mio. €.

19. The solution is the outsourcing of payroll and personnel administration  Payroll as key source for correct employee data drives decision for global solution including payroll  One single source for master employee data across the organization  Self-Service functionality allocates process and data ownership at its source  System to become the backbone for the HR Shared Services Organization  Payroll is currently already outsourced for 10.500 BT employees (approx. 1/3 of BTs workforce)

20. Selecting ADP to become a strategic partner  ADP is one of the few true global providers of a Payroll and Personnel Administration solution  Working with specialised, experienced vendor as ADP reduces the implementation risks  With ADP access to the latest proven SAP platform is enabled allowing global usage of Personnel Administration as well as Self Services functionalities  ADP is already BTs outsourcing partner in US and France

21. The scope of the solution with GlobalView covers 96% of the BT workforce in 18 key countries Global Solutions Small size countries – out of scope(3,8%) Outsourced Countries (96,2%) Brazil (111)Norway (109)Portugal (107)Russian Fed. (70)Finland (40)Turkey (11)Greece (3)Taiwan (68)Thailand (139)China (69)South Korea (32)Philippines (9)Singapore (3)Malaysia (3)TBD…. USA (2787)Canada (2261)Mexico (930) NA UK (4518)Sweden (1592)Denmark (388) UK & Nordic France (1663)Belgium (795)Spain (472)Italy (641) Western Europe Germany (7511)Czech Rep. (538)Austria (574)Switzerland (675)Poland (800)Hungary (1344) Central Europe Australia (270)India (173) RoW SAP Business Warehouse Managers & Employees Self-Services Organisational Management (PA-OS) & Employee Global Data (PA) Local Solutions Time Calculation Level 1 (PT-RC) Payroll (PY) HR Level 3 (CM – Compensation Management) Taleo (Recrut.) Technomedia (WF Developt.) ADP SAP Global ViewBT Global Solutions Local Time & Attendance Systems Transfer

22. The new timeline of the GlobalView implementation runs until the last go-lives in January 2014 JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJan 201020112012201314 GV HR HR migr ation Live Denmark Live Germany Live France Live Belgium Live Austria Live Switzerland Live Spain Live Hungary Live Italy Live Czech Rep. Live Sweden Live Poland Live in November 2009 UK live in April 2009 US Live Canada Live Mexico Live Australia Live India live in April 2009 pre-projectPrepBlueprintRealisationFinalGo-Live

23. Since 2008 four countries have gone live with a lot of lessons learnt on the way  UK and India live since April 2009 – on time  Poland live since November 2009 – one month delay  Sweden live since March 2010 – 10 months delay  Overall timeline shift: –Initial: 2008-07 to 2011-01 –Revised: 2008-07 to 2014-01  Intense joint (ADP/BT) lessons learnt exercise in mid 2009 –Reshaping of overall approach –Stronger global BT template definitions –Better up-front preparation per country –Longer implementation timeline per country –Skilled project management resources leading a country 23 Current countries in implementation (Denmark and Germany) are on track