Slide 1: CAE Investor Day
CAE INVESTOR DAY March 30, 2016 Omni King Edward Hotel, Toronto CAE Inc. Proprietary Information and/or Confidential 1
Slide 2: Caution Regarding Forward Looking Statements
CAE INVESTOR DAY CAUTION REGARDING FORWARD LOOKING STATEMENTS The following investor presentation and oral statements made by management during CAE Inc.’s March 30, 2016 Investor Day include forward- looking statements about our activities, events and developments that we expect to or anticipate may
Slide 3: Welcome and Introduction: Session objectives
CAE INVESTOR DAY WELCOME AND INTRODUCTION Session objectives ► Provide insights on CAE’s strategy and vision ► Highlight CAE’s position and the way forward ► Discuss capital allocation strategy ► Exchange with CAE’s leadership Andrew Arnovitz ► Demonstrate some of our leading solutions Vice Presiden
Slide 4: Executive Team on Hand for Discussion
CAE INVESTOR DAY EXECUTIVE TEAM ON HAND FOR DISCUSSION Marc Parent Robert Amyot Mark Hounsell President and Chief President, General Counsel, Executive Officer CAE Healthcare Chief Compliance Officer and Secretary Andrew Arnovitz Stéphane Lefebvre Sonya Branco Effective May 23, 2016: Vice President,
Slide 5: CEO's Opening Remarks: Solid progress FY16 YTD
CAE INVESTOR DAY CEO’S OPENING REMARKS Solid progress ─ FY16YTD ► Financial performance and position $1.8B revenue; $171M net income; $235M free cash flow $6.4B - Record order backlog 29% net debt-to-capital; implemented NCIB ► Operations and strategy Increased utilization of training networ
Slide 6: CEO's Opening Remarks
CAE INVESTOR DAY CEO’S OPENING REMARKS CAE is a different business than it was 5 and 10 years ago ► Pivot to training was expressly intended to give CAE Access to much larger markets for sustainable growth Greater stability by increasing mix of recurring business ► Good fit between CAE’s three c
Slide 7: Committed to Market Leadership
CAE INVESTOR DAY COMMITTED TO MARKET LEADERSHIP CAE Inc. Proprietary Information and/or Confidential 7
Slide 8: Strategy Focused on a Singular Training Vision
CAE INVESTOR DAY STRATEGY FOCUSED ON A SINGULAR TRAINING VISION CAE Inc. Proprietary Information and/or Confidential 8
Slide 9: Training Leadership on an Unmatched Global Scale
CAE INVESTOR DAY TRAINING LEADERSHIP ON AN UNMATCHED GLOBAL SCALE 160 67 120,000 8,000 Sites Training locations Pilots trained/year Employees 9
Slide 10: We Are Guided by Three Strategic Imperatives
CAE INVESTOR DAY WE ARE GUIDED BY THREE STRATEGIC IMPERATIVES FOCUS on three core markets PROTECT market leadership GROW returns on existing assets and invest selectively in sustainable growth opportunities Our strategic imperatives guide our investment decisions towards sustainable growth in our co
Slide 11: CAE's Six Pillars of Strength
CAE INVESTOR DAY CAE’S SIX PILLARS OF STRENGTH High Degree of Strong Underlying Potential for Culture Headroom Recurring Competitive Secular Superior of in Large Markets Business Moat Tailwinds Returns Innovation • Services revenue • Market leader • 75% untapped share • ~5% long-term • Rising propor
Slide 12: Thank You
THANK YOU CAE Inc. Proprietary Information and/or Confidential 12
Slide 13: Non-GAAP Measures
CAE INVESTOR DAY NON-GAAP MEASURES • Free cash flow is a non-GAAP measure that shows us how much cash we have available to invest in growth opportunities, repay debt and meet ongoing financial obligations. We use it as an indicator of our financial strength and liquidity. We calculate it by taking t