Cae Inc. · TSX:CAE
Cae — Investor Day (June 2017)
31 slides from Cae's investor day presentation, Jun 6, 2017
Slide 1: Investor Day: CAE Defence & Security
Investor Day CAE Defence & Security Gene Colabatistto D&S Group President Moose Jaw 6 June 2017 Your worldwide training partner of choice
Slide 2: Our Vision
DEFENCE & SECURITY OUR VISION 2 CAE Inc. Proprietary Information and/or Confidential
Slide 3: A Global Training Company
DEFENCE & SECURITY A GLOBAL TRAINING COMPANY Enhancing Safety, Efficiency and Readiness # 1 Military Virtual Air Training ALLOWING DEFENCE FORCES MAKING CIVIL HELPING MEDICAL PERSONNEL TO ACHIEVE HIGHEST LEVEL AIR TRAVEL SAFER PROVIDE BETTER CARE OF READINESS 3 CAE Inc. Proprietary Information and/o
Slide 4: Global Presence
DEFENCE & SECURITY DEFENCE GLOBAL PRESENCE CAE UK/EU 24% of Revenue CAE CANADA Burgess Hill Stolberg 35 COUNTRIES 19% of Revenue Ottawa Montreal 50+ DEFENCE AGENCIES 80+ SITES Orlando Bengaluru CAE USA 40% of Revenue Tampa 72 PLATFORMS SIMULATED Singapore CAE APAC/ME 17% of Revenue Sydney Operations
Slide 5: Training System Integration
DEFENCE & SECURITY TRAINING SYSTEM INTEGRATION Simulated Operators Simulated Platforms Constructive Live Operators Live Operators Simulated Platforms Real Platforms Virtual Live CAE Defence & Security provides Training as a Service (TaaS) Integrating Live, Virtual and Constructive solutions in an op
Slide 6: TSI Success – Unmanned Aerial Systems (UAS)
DEFENCE & SECURITY TSI SUCCESS – UNMANNED AERIAL SYSTEMS (UAS) USAF MQ1/9 Predator/Reaper Aircrew Training System FORMAL/OPERATION TRAINING SITES: Holloman AFB, NM Strong need for training Creech AFB, NV March ANGB, CA 65 missions per day Hancock ANGB, NY X RESPONSIBILITIES: 18 pilot/sensor
Slide 7: TSI Success – Live Flight Training
DEFENCE & SECURITY TSI SUCCESS – LIVE FLIGHT TRAINING US Army Fixed Wing Flight Training Operation CAE to establish the US Army Aviation Center of Excellence at Dothan, Alabama • Classroom and student support facilities • Flight line and maintenance facilities • Simulation facility Program to provid
Slide 8: TSI Success – Naval Training Systems Integration
DEFENCE & SECURITY TSI SUCCESS – NAVAL TRAINING SYSTEMS INTEGRATION UAE Naval Training Centers CAE to design, build and operate 8 training centers • Bridge simulators • Combat Information Centre (CIC) • Machinery control room (MCR) • Combat Management Systems, sensors and weapons systems Train surfa
Slide 9: TSI Success – Foreign Military Sales/Exports
DEFENCE & SECURITY TSI SUCCESS – FOREIGN MILITARY SALES/EXPORTS UAE Air Force Remotely Piloted Aircraft (RPA) Training Center Establish a primary/advance training capability • UAV Flight Training Devices • Constructive Simulation • Distributed Mission Operations • Courseware • Instructors Train pilo
Slide 10: Global Defence Growth Cycle – The Perfect Storm
DEFENCE & SECURITY GLOBAL DEFENCE GROWTH CYCLE – THE PERFECT STORM Short-Term FY17 US Department of Defense Procurement Budget War on Terrorism 250 ($B USD) (21%) 18% 200 150 Mid-Term Resurgent Russia 100 50 Long-Term 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Emerging China Global Def
Slide 11: Global Defence Growth Cycle – The Double Bump
DEFENCE & SECURITY GLOBAL DEFENCE GROWTH CYCLE – THE DOUBLE BUMP Canada Europe & Middle East • Sovereignty/North American Defence •New focus on resurgent Russia • Renew International Commitments •Ongoing focus on Counter-Terror • Focus on Air/Naval •Focus on Air/Land United States Asia-Pacific •Glob
Slide 12: Global Defence Growth Cycle – 3rd Offset
DEFENCE & SECURITY GLOBAL DEFENCE GROWTH CYCLE – 3RD OFFSET he Defence market’s priority is Highest Level of Mission Readiness • Training to execute complex and sensitive tasks • Simulation of advanced weapons, sensors and processing systems • Increased levels of programmatic and cyber security 12 C
Slide 13: Target Market Size
DEFENCE & SECURITY TARGET MARKET SIZE CAE’s new position in Live, Unmanned Systems and Naval has expanded our 5-year Pipeline of Opportunities to $30B and backlog of submitted proposals to >$4B 13 CAE Inc. Proprietary Information and/or Confidential
Slide 14: Defence & Security Strategy
DEFENCE & SECURITY DEFENCE & SECURITY STRATEGY Win market share at the beginning of the up-turn in the Global Defence Cycle through aggressive Business Development and Strategy-led Acquisitions 14 CAE Inc. Proprietary Information and/or Confidential
Slide 15: Value Creation Thesis
DEFENCE & SECURITY VALUE CREATION THESIS High Degree Strong Headroom Underlying Potential for Culture of Recurring Competitive In Large Secular Superior of Business Moat Market Tailwind Returns Innovation • Positioned on • Strong • $15B • Global Defence • Sustained • Focus on enduring Customer and (
Slide 16: Investor Day: CAE D&S Canada
Investor Day CAE D&S CANADA Joe Armstrong VP, GM D&S Canada Moose Jaw 6 June 2017 Your worldwide training partner of choice
Slide 17: Introduction: Joe Armstrong
NFTC INTRODUCTION ►Joe Armstrong, Vice-President & General Manager of CAE CANADA • 17 years with CAE • Previously Director of Operational and Training Solutions • CADSI Board Member • NATO Scientific Achievement Award – 2008 • Masters, Experimental Psychology • PhD Candidate, Psychology 17 CAE Inc.
Slide 18: CAE Canada at a Glance
CAE CANADA CAE CANADA AT A GLANCE QUEBEC CAE HAS CLOSE TO WESTERN CANADA 3,200 300 4,500 ONTARIO EASTERN CANADA EMPLOYEES IN CANADA (CIVIL, D&S , GLOBAL, HEALTHCARE) 300 150 CAE D&S CANADA Organization is 750 employees across 14 sites 18 CAE Inc. Proprietary Information and/or Confidential
Slide 19: CAE D&S Canada: Core Capabilities
CAE CANADA CAE D&S CANADA: CORE CAPABILITIES TRAINING SYSTEMS OPERATIONAL SYSTEMS Training LEVEL 5 Systems CMMI Integration Systems Engineering Training 25 Years Systems DND Optimization ILS & ISS Training & Operational Systems with Performance-Based In-Service Support 19 CAE Inc. Proprietary Inform
Slide 20: Training Systems Across Canada
D&S CANADA TRAINING SYSTEMS ACROSS CANADA NATO Flight Training in Canada Operational Training Systems Provider ► Ab-initio pilot training ► C130J Super Hercules ► Operate all base facilities Moose Jaw ► CH47F Chinook ► Deliver Ground Based Training ► Deliver Aircraft for Live Training RCAF Rear Crew
Slide 21: Operational Systems
CAE CANADA OPERATIONAL SYSTEMS Operational Systems ► Specialty Engineering Support Standing Offers ► Magnetic Anomaly Detectors (MAD / MAD XR) ► Army Electronic Warfare Suites and EW Simulator ► Maritime Helicopter Project (MHP) Integrated Information Environment ► CF18 Mission Suites Systems Engine
Slide 22: NATO Flight Training in Canada
Investor Day NATO Flight Training in Canada Scott Greenough Manager, CMAT/NFTC Operations Moose Jaw 6 June 2017 Your worldwide training partner of choice
Slide 23: Introduction: Scott Greenough
NFTC INTRODUCTION ►Scott Greenough, LCol (Retired) • 26 Years Royal Canadian Air Force • CF-18 Pilot • Cold Lake and Bagtoville • 416, 410, 433, 425 Sqn • Fighter Standards and Eval Team • OpsO, SWATO, DCO • Fighter Weapons Instructor • Officer Commanding FWIC • Commandant • 2 Canadian Forces Flying
Slide 24: CAE & NFTC
NFTC CAE & NFTC ►CAE started operations on 1 Oct 2015 ►NFTC is carried out as a PARTNERSHIP between CAE Military Aviation Training Inc. and DND ►Main Contract : SERVICES AGREEMENT IN SUPPORT OF THE TRAINING OF CANADIAN MILITARY PILOTS SIGNED ON 12TH MAY 1998 (From left to right) 419 Squadron’s Comma
Slide 25: Three Main Lines of Business
NFTC THREE (3) MAIN LINE OF BUSINESS ►Ground Based Training and Simulation ►Provision of Aircraft ►Site Services CAE Inc. Proprietary Information and/or Confidential
Slide 26: DND & NFTC
NFTC DND & NFTC Canada provides to the NFTC program: ► Students & Flight Instructors ► Syllabus for GBTS and Flight Training ► NATO and other nations sign-on with Canada directly through MOUs – nation to nation ► Air Traffic Control ► Flight Safety ► Training Standards CAE Inc. Proprietary Informati
Slide 27: CAE's Services to NFTC
NFTC CAE’S SERVICES TO NFTC ► Maintenance of Harvards & Hawks ► Fitting and maintenance of ALSE ► Aircraft Fatigue Management ► Egress Training ► Aircraft Engineering Services ► Airfield Maintenance ► Program Services ► Flight Planning & ► Aircraft Refueling ► Customer Service Meteorological Service
Slide 28: NFTC Live Course Flow
NFTC NFTC LIVE COURSE FLOW CAE Inc. Proprietary Information and/or Confidential
Slide 29: NFTC Flying Training Airspace and Ranges
NFTC NFTC FLYING TRAINING AIRSPACE AND RANGES Cold Lake Portage la Prairie Moose Jaw CAE Inc. Proprietary Information and/or Confidential
Slide 30: Team NFTC
NFTC “TEAM NFTC” CAE Inc. Proprietary Information and/or Confidential
Slide 31: Thank you!
Thank you! Your worldwide training partner of choice