1. April 3, 2009 Action Notes1 of 75 Equity Research RATING/TARGET/ESTIMATE CHANGESBombardier Inc. (BBD.B-T) US$2.71 ...... 3 BUY (Unchanged);Target: US$4.00 (Prior: US$5.00) Q4/09 Review; Strong Quarter With Weakening OutlookCameco Corp. (CCO-T, CCJ-N) C$22.10 ...... 8 HOLD (Prior: BUY);Target: C$24.00 (Unchanged) Downgrade to Hold - Uranium Price Forecast LoweredCeltic Exploration Ltd. (CLT-T) C$13.68 .... 11 BUY (Unchanged);Target: C$17.50 (Unchanged) Equity Adds To Financial FlexibilityFirst Quantum Minerals Ltd. (FM-T) C$38.13.... 16 BUY (Prior: HOLD);Target: C$48.00 (Prior: C$40.00) Upgrading to BUY on Higher Copper Price ForecastPacific Rubiales Energy Corp. (PRE-T) C$5.40.... 19 ACTION LIST BUY (Unchanged);Target: C$10.00 (Unchanged) PRE Reports Q4/08 Results; Holds Conference CallQuadra Mining Ltd. (QUA-T) C$6.00 .... 22 BUY (Prior: HOLD);Target: C$7.50 (Prior: C$5.00) Target and Rating Increased on Higher Copper PricesResearch In Motion Ltd. (RIMM-Q, RIM-T) US$49.09.... 27 ACTION LIST BUY (Unchanged);Target: US$80.00 (Prior: US$70.00) Strong Gross Margins Should Take the Stock HigherSino-Forest Corp. (TRE-T) C$10.15 .... 31 BUY (Unchanged);Target: C$13.50 (Prior: C$12.00) Annual Poyry Valuation Report ReleasedINDUSTRY NOTESFinancial Services - Banks.... 36 Large-Cap Canadian Banks: March Fund FlowsFinancial Services - Banks.... 40 Increased MTM Flexibility; Not a Game ChangerFinancial Services - Diversified Financials .... 45 Its Official - Investors Went on Strike for 2009 RSP SeasonPlease see the final pages of this document for important disclosure information.

2. April 3, 2009Action Notes 2 of 75 Equity Research Notes (contd) Metals & Minerals .... 51 Q1/09 Marked-to-Market Metal PricesINTRADAY NOTES (published April 2, 2009)Dorel Industries Inc. (DII.B-T) C$19.75 .... 58 BUY (Unchanged);Target: C$26.00 (Unchanged) Dorel Refocuses Recreational Segment into Five CentersEnergy Savings Income Fund (SIF.UN-T) C$10.68 .... 61 HOLD (Unchanged);Target: C$11.50 (Unchanged) Q4/F09 Guidance Up Primarily On Windfall Gas MarginsLabopharm Inc. (DDS-T, DDSS-Q) C$1.64 .... 63 HOLD (Unchanged);Target: C$2.50 (Unchanged) Tramadol-Acetaminophen Falls Short 3. April 3, 2009Action Notes3 of 75Equity ResearchTim James, CFAScott Farley, CA (Associate) Transportation/Aerospace Recommendation: BUYUnchanged Risk:HIGH Bombardier Inc. 12-Month Target Price:US$4.00 (BBD.B-T) US$2.71 Prior: US$5.00 12-Month Total Return: 50.6% Q4/09 Review; Strong Quarter With Weakening OutlookMarket Data (US$) Current Price $2.71 Event 52-Wk Range $1.72-$8.80 Bombardier reported Q4/09 results on April 2nd. Reported EPS increased to Mkt Cap (f.d.)($mm)$4,752.8 EV ($mm) $4,682.1 $0.17 from $0.12 a year earlier, exceeding our estimate and consensus of Dividend per Share$0.08 $0.14. Dividend Yield3.0% Avg. Daily Trading Vol. (3mths)12,044,540 Impact - NeutralFinancial Data (US$) Fiscal Y-EJanuary Based on Q4/09 results, our updated industry outlook and guidance provided, Shares O/S (f.d.)(mm) 1,753.8 we are maintaining our FY10 EPS estimate at $0.50 and reducing our FY11 Float Shares (mm) 1,753.8 estimate to $0.40 (from $0.49). We have reduced our target EPS and Net Cash ($mm) $295.0 EBITDA multiples to 8.0x (from 9.0x) and 4.5x (from 5.0x) to reflect current Net Debt/Tot CapNA BVPS (f.d.) $1.45 market conditions which combined with lower FY11 earnings expectations Cash ($mm) $4,247.0 results in a decline in our price target to US$4.00. We are maintaining ourEstimates (US$)BUY recommendation. Year 2008A 2009A 2010E 2011E EBITDA ($mm)1,352.0 1,937.0 1,998.8 1,612.8 While we acknowledge that the outlook for the commercial aerospace EBITDA (old)($mm) 1,352.0 1,937.0 1,850.4 1,627.1 industry continues to weaken, we continue to believe Bombardier is EPS (f.d.) 0.260.560.500.40 undervalued at current levels. We believe the companys strong balance EPS (f.d.)(old)0.260.560.500.49 sheet, order backlog and Transportation segment potential will allowEPS (f.d.) Quarterly Estimates (US$) Bombardier to weather the current economic downturn more successfully than Year 2008A 2009A2010E2011E Q1 0.040.12 0.12 -- current multiples imply. Q2 0.050.14 0.13 -- Q3 0.050.14 0.12 -- We emphasize that negative Aerospace industry news flow is expected to Q4 0.120.17 0.13 -- continue for the next several quarters, and to the extent the market continuesValuations to key on this data, Bombardiers share price may be challenged to move Year 2008A 2009A2010E2011E materially higher. However, on a fundamental value basis, we consider EV/EBITDA3.5x2.4x 2.3x 2.9x P/E (f.d.)10.4x4.8x 5.4x 6.8x Bombardier shares to be attractive at current levels.Aerospace: All figures in US$, unless otherwise specified. Revenues declined 4% compared to a year earlier on a 29% decrease in business jet deliveries. We had forecast a 6% decline. EBITDA excluding Other income increased 13% to $364 million, representing 13.1% of revenue and a 190bp improvement year-over- year. The improvement was attributable to higher selling prices, a more favourable product mix and lower S&GA.BBD.B-T: Price Company Profile1010 A global corporation headquartered in Canada,Bombardiermanufactures 88transportation solutions ranging from regional aircraft and business jets to rail 66transportation equipment. Its revenues for 44 the fiscal year ended January 31, 2009 werePlease see the final pages ofUS$19.7 billion and its shares are traded onthis document for important22 the Toronto Stock Exchange (BBD.B). 2006 2007 2008 disclosure information. 4. April 3, 2009Action Notes4 of 75Equity Research Included in the EBITDA result is a write-down of used business jet inventory values which we estimaterepresented approximately 70 bps of margin. Bombardier received 6 net orders in the quarter including 19 net business jet cancellations and 25 netQ400 orders, down from the 204 net orders received in Q4/08. These figures were revised downwards by11 net orders from data disclosed on February 5th.Exhibit 1: Bombardier Inc. Q4/09 Financial Performance Q3/F09 GrowthMillions of U.S. Dollars except per share amounts Q4/F09 Q4/F08GrowthRevenuesAerospace2,777 2,893 (4%) (2%)Transportation 2,652 2,377 12%21% 5,429 5,270 3% 8% EBITDA (before Other expense (income))Aerospace364 25642%32%Margin 13.1%8.8% 4.3%3.4%EBITDA Excluding One-time items & EOAPC364 323 13% (6%)Margin Excluding One-time Items & EOAPC13.1% 11.2% 1.9%(0.4%)Transportation 215 135 59% 37%Margin8.1%5.7% 2.4%0.7%Margin Excluding One-time Items 8.1%5.7% 2.4%0.7% 579 391 48% 34%Total Margin 10.7%7.4% 3.2%1.8%Margin Excluding One-time Items & EOAPC10.7%8.7% 2.0%(0.3%) EBIT (before Other expense (income))Aerospace255 157 62%45%Margin9.2%5.4% 3.8% 2.7%Transportation 185 107 73%53%Margin7.0%4.5% 2.5% 1.0% 440 26466.7%47.5%Total Margin8.1%5.0% 3.1% 1.7% Income (loss) for the period 309 218 42%169%Margin5.7%4.1% 1.6%3.2% Earnings per Share - Basic & DilutedFrom Continuing Operations $0.17 $0.12 42%183%Net Income (loss)$0.17 $0.12 42%183% Net Debt to Total Capitalization -13.1%-19.3%Total Debt to Trailing EBITDA 2.0x3.2xAverage US$/C$ exchange rate0.816 1.007(19.0%) (6.7%)Regional JetsDeliveries1919 0%(41%)Net Orders 031 (100%)300%Regional Turbo-propsDeliveries1819 (5%)(25%)Net Orders2519 32% 20%Business JetsDeliveries 54 76(29%) (0%)Net Orders(19) 154 (112%)(57%)Source: Company reports, TD Newcrest estimates. 5. April 3, 2009 Action Notes5 of 75 Equity Research Transportation: Transportation revenue increased 12% to $2.7 billion, slightly below our forecast of 17% growth, but still representing a strong result in our view. U.S. dollar appreciation was estimated to have reduced growth by approximately 12%. EBITDA excluding Other income increased 59% to $215 million and margin by 240bps to 8.1%. Management attributed the improvement to better contract execution, increased overhead absorption and a declining impact from several low margin contracts. Order intake remained strong at $2.6 billion, representing a 1.0x book-to-bill. This is slightly below the 1.4x book to bill ratio reported over the previous eight quarters. Order backlog declined $6.2 billion from a year earlier, largely due to unfavourable currency movements and a contract cancellation.Balance Sheet: Bombardier reported negative FCF of $91 million compared to $924 million a year earlier. Aerospace FCF declined $825 million, significantly more than expected and accounting for 83% of the decrease. Transportation FCF declined in-line with estimates at $165 million. The decline in Aerospace was attributable to a build-up in aircraft inventories arising from higher cancellations and deferrals, and a decrease in customer advances. The company reported cash of $3.5 billion at year-end with no debt maturities until May 2012. Required debt and capital lease repayments over the next three years total $29 million. The amount available under current facilities is $760 million. Included in inventory at year-end were 19 new and 29 used aircraft valued at $448 million and compared to the $176 million in inventory at the end of Q3/09. Bombardier estimated its calendar 2009 pension funding requirements at $400 million, compared to $332 million in 2008. This is a relatively moderate increase as a result of the offsetting impacts of a lower discount rate on liabilities and weak return on plan assets in 2008.Outlook FY10 business jet deliveries are expected to be 25% below FY09, compared to the 10% reduction indicated on February 5th. Bombardiers Learjet unit continues to face the deepest cuts, but Challenger and Global aircraft will also be affected. The magnitude of additional reductions was not surprising, and remains relatively small in comparison to those announced by direct competitors. Gulfstream has guided to a 38% year-over-year decline and Cessna recently announced a second round of production cuts (unquantified) subsequent to its initial 20% reduction. We have assumed a year-over-year decline of 30% in our forecast (vs 18% previously). Management guided to single-digit, constant-currency revenue growth within the Transportation segment. This compares to estimated Q4/09 and FY09 constant-currency growth of 24%. The EBIT margin target of 6% for the year was re-iterated. FCF is expected to continue to be weak during the first half of the year, before improving during the second half. As comparables become easier and the inventory build-up is reduced, year-over-year declines in FCF are expected to moderate relative to Q4/09. Maintenance capital spending will be reduced where possible, but there is no plan to reduce capital expenditures related to new aerospace development projects.Valuation Bombardier is currently trading at 5.4x estimated FY10 EPS and estimated 6.8x FY11 EPS. On an EBITDA basis, it is currently trading at 2.3x FY10 and 2.9x FY11 respectively. This compares to comparables which are trading at 9.4x 2009 and 9.7x 2010 EPS, and 5.4x and 5.8x 2009 and 2010 EBITDA respectively. 6. April 3, 2009Action Notes 6 of 75Equity Research Exhibit 2: Bombardier Inc. Comparables TableShare PriceEarnings Per ShareEBITDA CAGRP/EEV/EBITDAShares O/S Mkt Cap Five-yearEV/RevenueNet debt to TTM EBITDA Backlog to TTM CompanySymbol 2-Apr-092008 2009E2010E 10E vs. 08 20082009E 2010EP/Book Trailing 2008 2009E2010E (millions) (millions) CAGR RevsTrailing Capitalization MarginRevenue Aerospace Companies CAE Inc. ($CAD)CAE $7.96 255.0$2,029.5 4.7%$0.77 $0.68$0.67 (2.7%) 10.4x11.7x 11.9x1.8x6.0x 5.9x 6.2x 6.2x1.4x 18.8% 23.9% 1.9x The Boeing Company ($US) BA $37.20 726.1 $27,012.0 3.8% $6.12 $5.01 $4.94 13.0% 6.1x 7.4x7.5x NA 5.7x 5.7x 4.4x 4.5x0.5x