Cae Inc. · TSX:CAE
Cae — Merger or Acquisition (November 2018)
11 slides from Cae's merger presentation, Nov 8, 2018
Slide 1: CAE Acquisition of Bombardier Business Aircraft Training
CAE Acquisition of Bombardier Business Aircraft Training November 8, 2018 Your worldwide training partner of choice
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements This presentation of CAE Inc. (“CAE”, “we”, “our” or “us”) contains forward-looking statements and information within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable securities laws, including, without limitation, cert
Slide 3: Win-win transaction
Win-win transaction WORLDWIDE TRAINING PARTNER OF CHOICE CAE to acquire Bombardier’s Business Aircraft Training business for enterprise value of US$645 million to expand its position in the business aviation training market 3 CAE Inc. Proprietary Information and/or Confidential
Slide 4: Transaction highlights
Transaction highlights Expands CAE’s addressable market in Business Aviation Training ✔ • Acquires an established and growing business for the provision of flight and maintenance training services for operators of one of the world’s largest and most valuable in-service business jet fleets • Extends
Slide 5: Transaction summary
Transaction summary Two main transaction elements (“Transaction”): 1. Acquisition of Bombardier Business Aircraft Training ("BAT") business for enterprise value of US$645 million Transaction • EV / one-year Forward EBITDA(1) (2) multiple of approximately 9x Overview • EV / LTM (Jun-18) Bombardier
Slide 6: Attractive training business driven by a large and growing customer installed fleet of Bombardier business jets
Attractive training business driven by a large and growing customer installed fleet of Bombardier business jets In-Service Business Jet Aircrafts by Market Value (% by OEM)(1) 2018-27 Forecasted Business Jet Aircraft Deliveries(2) Addressable in-service fleet of more than 4,800 7,700 expected aircra
Slide 7: Industry-leading Business Aviation Training platforms
Industry-leading Business Aviation Training platforms Bombardier's BAT Business by Aircraft Platform Growth expected from strong demand by Entry Into In # of customers operating a large in-service fleet, Aircraft Platform Cabin Size additional business jet deliveries, and the ramp-up Service Produ
Slide 8: Low-risk integration
Low-risk integration Bombardier's BAT Facilities Bombardier's BAT platforms are co-located within CAE premises CAE already providing training services for Bombardier's business jets • High level of familiarity with various Bombardier aircraft Dallas Facility Montreal Facility platforms • CAE cur
Slide 9: Monetization of existing future royalty obligations and extension of ATP to 2038
Monetization of existing future royalty obligations and extension of ATP to 2038 Strategically and financially beneficial transaction US$155 million to monetize CAE’s future royalty obligations under its existing Authorized Training Provider (ATP) agreement with Bombardier and extension to 2038
Slide 10: Capital allocation priorities unchanged
Capital allocation priorities unchanged Invest in superior and sustainable growth Market-led investment in core business opportunities offering accretive returns and cash generation Provide current shareholder returns while generating long-term growth Shareholder dividends and share repurchases
Slide 11: Our vision is to be the recognized global training partner of choice
Our vision is to be the recognized global training partner of choice to enhance safety, efficiency and readiness.