Slide 1: Investor Presentation Third Quarter Fiscal Year 2025
Investor Presentation Third Quarter Fiscal Year 2025 Data as of February 14, 2025
Slide 2: Disclaimer
Disclaimer CAUTION REGARDING FORWARD-LOOKING STATEMENTS This Presentation includes forward-looking statements about our activities, events and developments that we expect to or anticipate may occur in the future including, for example, statements about our vision, strategies, market trends and outlo
Slide 3: Disclaimer
Disclaimer Readers are cautioned that any of the disclosed risks could have a material adverse effect on CAE’s forward-looking statements. Readers are also cautioned that the risks described above and elsewhere in this Presentation are not necessarily the only ones we face; additional risks and unce
Slide 4: Non-IFRS and Other Financial Measures
NON-IFRS AND OTHER FINANCIAL MEASURES This Presentation includes non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or
Slide 5: Our vision
Our vision To be the worldwide partner of choice in civil aviation and defence and security, by revolutionizing our customers’ training and critical operations with digitally immersive solutions to elevate safety, efficiency and readiness CAE Inc. Proprietary Information and/or Confidential
Slide 6: CAE is driving growth and creating value across key divisions
CAE is driving growth and creating value across 5 key divisions Defense & Security (USA) Commercial Aviation Training & Services Defense & Security (International) Business Aviation Training & Services Flight Operations Solutions CAE Inc. CAE Inc.Proprietary Proprietary Information Information and/o
Slide 7: A global leader in training, mission, and operational support solutions
Total Revenue A global leader in Defense 43 % 57 Civil training, mission, and and Aviation Security operational support Products/Services Mix* solutions 32 % 68 $4.3B 40+ 240+ ~13,000 Products Services FY24 revenue countries locations employees Geographic Mix U.S.A. 49 % Europe & UK 21 30 Canada/ Re
Slide 8: Current and next-generation products enabling our training ecosystem
Current and next-generation products enabling our training ecosystem CAE Inc. Proprietary Information and/or Confidential
Slide 9: Civil Aviation
Civil Aviation Elevating and advancing human performance
Slide 10: World's largest aviation training footprint
With the world’s largest #1 Every 5 seconds aviation training footprint, we Civil Aviation Training equip people in critical roles with expertise and solutions using our flight ops solutions to make the world safer 130+ 70+ aircraft in locations training network 150,000+ 1.3M 1,300+ 360+ pilots hour
Slide 11: Significant growth runway with 1.3 million new aviation personnel required by 2032
Significant growth runway with 1.3 million new commercial and business aviation personnel required by 2032 New Commercial Aviation New Business Aviation Commercial Personnel Needed: Personnel Needed: Commercial aviation fleet growth 1,180K 106K 2023-2032: 32K 74K 39% 252K 599K New Pilots New Cabin N
Slide 12: Defense & Security
Defense & Security Making the world a safer place through enhanced mission readiness
Slide 13: Located in key growth markets with local community and industry connection
Located in key growth markets with 145+ 40+ local community and sites countries industry connection 6,000+ 85+ Regional offices with manufacturing and integration capabilities employees platforms ▪ Tampa, FL (US HQ) ▪ Ottawa, ON ▪ Arlington, TX ▪ Burgess Hill, UK ▪ Halifax, NS ▪ Stolberg, Germany ▪
Slide 14: Defence markets growing across regions and platforms
Defence markets growing across regions and platforms: Need to meet critical training needs in complex environments Forecasted defence budget growth across Military training spending forecast key allied nations, CAGR FY24-FY29 3.6% 2.6% 10-year CAGR* Average personnel shortfalls across key allied nat
Slide 15: Strong backlog growth fuels continued growth across Civil and Defense
Strong backlog growth fuels continued growth across Civil and Defense Civil D&S $8.8B 1.42x 20% 44% $11.5B 2.19x 104% Record adjusted Book to sales* y/y adjusted Record adjusted Book to sales* y/y adjusted backlog* (TTM) backlog* growth backlog* (TTM) backlog* growth * Data as of Q3 FY25. Non-IFRS a
Slide 16: Disciplined, balanced and market-led approach to capital allocation
Our disciplined, balanced and market-led approach to capital allocation Revenue, earnings and • Organic FFS deployments cash-flow growth through • New JV training agreements with airline partners multiple levers • Expanding training outsourcing of existing JV partners Strong financial • Continue to
Slide 17: Organic capital deployment driving recurring revenue and attractive incremental returns
Organic capital deployment driving recurring revenue and attractive incremental returns Year of FFS Pre-tax Return (%) on Organic Capital* Deployed deployment in Civil Training (FY17-FY24) 65% FY17 61% $1,077M+ 60% 55% FY18 FY19 organic capital* 50% FY20 48% invested in FY17-FY24 45% FY21 41% 40% to
Slide 18: Outlook for FY25
Outlook for FY25 Consolidated • Annual adjusted segmented operating income* growth modestly below 10%; • Target three-year EPS growth (FY22-25) in the low- Civil • Annual Civil adjusted segment operating income margin* modestly below 22-23% range to mid-teens percentage range. • Total CAPEX for fisc
Slide 19: Sustainability
Sustainability Civil Aviation Defense & Security Moving aviation safety and industry Noble mission to support preparedness; fostering decarbonization forward sovereignty, stability and safety through deterrence Committed to top 15% of our industry By FY33, CAE commits to: 100% sourcing Mobilising ou
Slide 20: Financial Highlights
Financial Highlights (amounts in millions, except per share amounts, adjusted ROCE and book-to-sales ratio) Q3FY25 Q3FY24 Variance % Performance Revenue $1,223.4 $1,094.5 12% Operating income $262.6 $121.6 116% Adjusted segment operating income* $190.0 $145.1 31% Net income attributable to equity ho
Slide 21: Reconciliation of non-IFRS measures
Reconciliation of non-IFRS measures Last twelve months ended December 31 Reconciliation of EBITDA, adjusted EBITDA, net debt-to-EBITDA and net debt-to-adjusted EBITDA 2024 2023 (Amounts in millions, except net debt-to-EBITDA ratios) Operating (loss) income $ (43.7) $ 525.9 Depreciation and amortizat
Slide 22: Reconciliation of non-IFRS measures
Reconciliation of non-IFRS measures Reconciliation of adjusted segment operating income Civil Aviation Defense & Security Total Three months ended December 31 2024 2023 2024 2023 2024 2023 (Amounts in millions) Operating income $ 223.4 $ 101.0 $ 39.2 $ 20.6 $ 262.6 $ 121.6 Restructuring, integration