page 64 Bombardier Inc. Annual Report 2003-04 months of the preceding fiscal year, partially offset the decrease.  BC’s EBT amounted to $73 million for fiscal year 2004, compared to $104 million in fiscal year 2003. This decrease is mainly due to the decrease in net margin resulting from the reduc- tion of the wind-down portfolios, partially offset by a decrease in non-interest expenses, as well as a decrease in provision for credit losses. ables, subject to certain eligibility criteria, for BRP’s North American and European subsi- diaries. Funding takes place in U.S. dollars and currency risk is retained by BRP. The amount outstanding as at January 31, 2004 relates entirely to this agreement. BC’s inventory finance activities provide floor- plan financing on a secured basis to retailers purchasing inventory products in the U.S. and Canada. The primary markets are manufac- tured housing, marine products and motorized recreational vehicles. The inventory finance portfolio amounted to $2.5 billion as at January 31, 2004, compared to $3.0 billion as at January 31, 2003. The decrease in the inventory finance portfolio  is mainly due to the strengthening of the Canadian dollar compared to the U.S. dollar.  In connection with the sale of the recre- ational products segment, BC entered into an agreement with the purchaser for inventory financing for a maximum amount of $750 mil- lion US ($995 million) for a renewable period of five years. Under the agreement, BC acts as the exclusive provider of floorplan financing  to retailers of BRP- (the former recreational  products segment of the Corporation) manu- factured products (excluding outboard engine products). During the terms of the agreement, BC has agreed not to provide retailer floorplan financing related to products of direct com- petitors of BRP (excluding outboard engine products). As at January 31, 2004, 29.7% or $735 million of the total inventory finance port- folio related to this agreement.  BC also entered into an agreement to provide receivable financing to BRP. The agreement is for a maximum of $115 million US ($153 million) and expires in June 2005. BC funds receiv- The commercial aircraft portfolio amounted to $1.1 billion as at January 31, 2004, compared to $1.3 billion as at January 31, 2003. This decrease is mainly due to the strengthening of the Canadian dollar compared to the U.S. dollar.  BC will continue to provide interim financing support for regional aircraft sales while awaiting permanent financing arrangements. Manage- ment has established a limit of 60 aircraft or $1.0 billion US outstanding for these activities.  Significant progress was made in reducing the wind-down portfolios during fiscal year 2004. Finance receivables and assets under operat- ing leases related to the wind-down portfolios declined 71.1%, or $3.0 billion during the fiscal year ended January 31, 2004, mainly due to  a $2.6-billion decrease in assets related to  business aircraft and factored receivables. BC’s business aircraft portfolio consists of loans and finance leases to third-party purchasers of new and pre-owned business aircraft, presented in finance receivables. This portfolio also includes pre-owned aircraft with respect to trade-in busi- ness aircraft, mainly from the aerospace segment, presented in assets under operat- ing leases.  This portfolio amounted to $496 million as  at January 31, 2004, compared to $2.0 billion as at January 31, 2003. This portfolio included $265 million of third-party loans and finance leases as at January 31, 2004, compared to $1.2 billion as at January 31, 2003. The loan- to-value ratio of the third-party loans and finance leases portfolio was 92.2% as at January 31, 2004, compared to 92.3% as at January 31, 2003.  During fiscal year 2004, the Corporation sold a significant portion of BC’s business aircraft loans and finance leases portfolio for $339 mil- lion US ($475 million) at the carrying value of the assets sold. Payment of $42 million US ($56 million) is conditional upon the per- formance of the portfolio sold. This amount is presented in other assets on the consolidated balance sheets. BC expects to continue to reduce this port- folio over the next three to five years through normal collections. Manufactured housing finance activities pro- vided U.S. retailers with financing services for consumer purchases of manufactured homes.  This portfolio amounted to $310 million as at January 31, 2004, compared to $434 million as at January 31, 2003. BC expects the wind-down to be completed over the next several years. Manufactured housing portfolios in public securitization vehicles amounting to $1.6 bil- lion as at January 31, 2004 ($2.1 billion as at January 31, 2003) are also serviced by BC. Consumer finance activities involved secured loans designed to enable consumers to acquire recreational products and services. This portfolio amounted to $195 million as at January 31, 2004, compared to $342 million as at January 31, 2003. BC expects that the wind- down of this portfolio will be substantially completed within the next three fiscal years. BC’s industrial equipment portfolio consists mainly of loans and finance leases to compa- nies in the ski industry. The portfolio amounted to $88 million as at January 31, 2004, compared to $115 million Commercial aircraft  Manufactured housing Consumer finance Wind-down portfolios Business aircraft  Industrial equipment Receivable financing with BRP Continued portfolios Inventory finance  BC provides interim financing support to Bombardier Aerospace regional aircraft cus- tomers until permanent third-party financing is arranged. 