page 63 Bombardier Inc. Annual Report 2003-04 Bombardier Capital $^{(1)}$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. 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.  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 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 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 2004 2003 Continued portfolios Inventory finance $2,474 $2,953 Receivable financing with BRP (1) 84 – 2,558 2,953 Commercial aircraft Interim financing 685 849 Long-term leasing 375 451 1,060 1,300 Total continued portfolios 3,618 4,253 Wind-down portfolios Business aircraft Loans and finance leases 265 1,221 Pre-owned aircraft 231 815 496 2,036 Manufactured housing 310 434 Consumer finance 195 342 Industrial equipment 88 115 Railcar leasing 51 61 Receivable factoring – 1,039 Other 92 235 Total wind-down portfolios 1,232 4,262 $4,850 $8,515 The following table presents total finance receivables and assets under operating leases before allowance for credit losses as at January 31: F02 F03 F04 Assets under management (BILLIONS OF CDN$) 10 8 6 4 2 0 Wind-down portfolios Continued portfolios Total 4.3 4.3 2.1 6.4 8.5 8.5 4.9 3.6 1.2