page 86 Bombardier Inc. Annual Report 2003-04 Consolidated statements of shareholders’ equity FOR THE YEARS ENDED JANUARY 31 (MILLIONS OF CANADIAN DOLLARS) NOTES 2004 2003 NUMBER NUMBER (IN THOUSANDS) AMOUNT (IN THOUSANDS) AMOUNT SHARE CAPITAL 14 Preferred shares Series 2 2,598 $ 65 2,598 $ 65 Series 3 9,402 235 9,402 235 Series 4 9,400 235 9,400 235 Balance at beginning and end of year – preferred shares 21,400 535 21,400 535 Common shares Class A Shares (Multiple Voting) Balance at beginning of year 342,020 47 342,367 47 Converted to Class B (2) – (347) – Balance at end of year 342,018 47 342,020 47 Class B Shares (Subordinate Voting) Balance at beginning of year 1,035,667 869 1,028,404 849 Issue of shares 370,000 1,203 – – Issued under the share option plans 15 1,898 4 6,916 20 Converted from Class A 2 – 347 – Balance at end of year 1,407,567 2,076 1,035,667 869 Balance at end of year – common shares 1,749,585 2,123 1,377,687 916 Total – share capital 2,658 1,451 CONTRIBUTED SURPLUS Balance at beginning of year  – – Stock-based compensation expense 1 6 – Balance at end of year 6 – RETAINED EARNINGS Balance at beginning of year  1,133 2,031 Net loss (89) (615) Dividends: Preferred shares (30) (29) Common shares (159) (249) Share issue costs, net of tax (33) (5) Balance at end of year 822 1,133 DEFERRED TRANSLATION ADJUSTMENT 20 (236) 157 Total – shareholders’ equity $3,250 $2,741 The accompanying summary of significant accounting policies and notes are an integral part of these Consolidated Financial Statements and provide information  on the financial statement presentation.