Slide 1: Investor Presentation First Quarter Fiscal Year 2025
Investor Presentation First Quarter Fiscal Year 2025 Data as of August 13, 2024
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: CAE is a technology company focused on safety, efficiency and readiness
OVERVIEW CAE is a technology company with a mission and vision focused on safety, efficiency and readiness . To be the worldwide partner of choice in civil aviation and defence & security by revolutionizing our customers’ training and critical operations with digitally immersive solutions to elevate
Slide 6: An essential partner moving our world forward safely through training and technology
OVERVIEW We are an essential partner in moving our world forward safely through training and technology Civil Aviation Defense & Security ▪ Largest global civilian training network ▪ Leading defence training and simulation provider (+1.3M hrs/year*) ▪ Only global pure-play, platform-independent ▪ Le
Slide 7: A world leader in training, mission, and operational support
Total Revenue A world leader in Defense and Security 43 % Civil training, mission, and 57 Aviation operational support Products/Services Mix* solutions Services Products 68 32 % $4.3B $918.4M 40+ 240+ ~13,000 FY24 Revenue FY24 Adj EBITDA# countries locations employees Geographic Breakdown Canada/ 52
Slide 8: Key CAE technologies to define and elevate future standards of training
OVERVIEW Key CAE technologies to define and elevate future standards of training and critical operations Advanced data analytics Enhanced visualization Biometrics through Real-time insights with and optimization with Augmented, mixed, across multiple ALETM* CAE RiseTM* CAE Flight Operations and virt
Slide 9: Applying civil aviation expertise to defence training and readiness
OVERVIEW Applying our expertise in Civil aviation simulation and training for increasingly complex defence training and readiness We are leveraging our market leading Civil aviation platform into defence training applications ▪ Helicopter training, US Army (FSTSS): Ft. Novosel, AL ▪ High Accuracy De
Slide 10: Top-down optimization is driving greater efficiency and synergy
OVERVIEW Top-down optimization is driving greater efficiency and synergy Cost optimization ▪ In Q1, $14.8 million restructuring costs to streamline and optimize CAE’s operating model and portfolio ▪ Additional $20 million in restructuring costs forecasted for Q2 Expect annual run rate cost savings o
Slide 11: Secular growth and technology drivers
OVERVIEW Secular tailwinds across all markets Secular growth and technology drivers 1.3 million ~31% New civil aviation personnel needed over Civil Aviation 1.1 million the next decade of 2023 pilots total for 2022-23 and growing High demand for new personnel due to retiring by 20321 training insigh
Slide 12: Substantial headroom in high growth markets
OVERVIEW Substantial headroom in high growth markets Civil: potential to increase share in a large and Defense & Security:* positioned for larger bids growing market Civil Total Addressable Market Defense Training & Education ~$6.5B Total Addressable Market ~$22.7B 5% 5% Canada IPAC 17% ~36% EMEA 73
Slide 13: Increasing adjusted backlog underpins growth
OVERVIEW Increasing adjusted backlog* underpins growth for a bigger, stronger, more profitable CAE 18,000 16,000 CAE 14,000 adjusted 12,000 backlog up 10,000 ~77%** 8,000 6,000 FY22 FY23 FY24 Q1 FY25 FYTD 25 Adjusted Backlog* ($M) *Non-IFRS and other financial measures (See slide 4) **Reflects perce
Slide 14: Balanced approach to capital allocation
CAPITAL ALLOCATION PRIORITIES Balanced approach to capital allocation Priorities Revenue, earnings, and Focus on organic investments for sustainable and accretive cash flow growth growth Strong financial 1 Maintain a strong balance sheet for resiliency and financial position flexibility Capital retu
Slide 15: Path to further strengthening our financial positioning
CAPITAL ALLOCATION PRIORITIES Path to further strengthening our financial positioning ~3.1x Net Debt/ 4.0x Adjusted EBITDA 300% in Q1 FY25** 3.5x 250% 3.0x 200% 2.5x Target 100% 2.0x FCF conversion** 150% 1.5x 100% 1.0x 50% 0.5x 0.0x 0% FY18 FY19 FY20 FY21 FY22 FY 23 FY24** Q1 FY25 * Net Debt / Adju
Slide 16: Organic capital driving recurring revenues and accretive compounding growth
CAPITAL ALLOCATION PRIORITIES Organic capital driving recurring revenues and accretive compounding growth Year of FFS Pre-tax Return (%) on Organic Capital* Deployed $1,077M+ deployment in Civil Training (FY17-FY24) 65% FY17 61% 60% FY18 organic capital* 55% FY19 invested in FY17-FY24 50% FY20 48% 4
Slide 17: Positive sustainability impact is built into CAE's business strategy
Sustainability Positive sustainability impact is built-in CAE’s business strategy Strong sustainability Civil Aviation Defense & Security impact across businesses Moving aviation safety, diversity and industry Noble mission to support preparedness; fostering sovereignty, decarbonization forward stab
Slide 18: Civil Aviation
Civil Aviation Elevating and advancing human performance
Slide 19: Market leader with strong cyclical and secular growth dynamics
CIVIL AVIATION Market leader with strong cyclical and secular growth dynamics Aviation Aviation Simulation Training ▪ Simfinity XR Series ▪ Pilot Training ▪ Flight Training Devices ▪ Cadet Academies Leading provider ▪ Full Flight Simulators ▪ CAE Instructor-Led Training poised to benefit ▪ Equipment
Slide 20: Strong demand for new civil aviation professionals
CIVIL AVIATION Strong demand for new civil aviation professionals 1.3 million 284K new pilots 402K new aircraft maintenance technicians 599K new cabin crew Large demand for new personnel due to industry growth and impending retirements Source: CAE 2023 Aviation Talent Forecast 20 Information confide
Slide 21: With the largest aviation footprint, we are always close to our customers
CIVIL AVIATION With the largest aviation footprint, we are always close to our customers #1 in Civil Aviation Training 1,300 + Full Flight Simulators Manufactured 340+ Full Flight Simulators in our Training Network 130+ Aircraft 70+ Locations 1.3M+ hours Simulator Training Delivered Annually* 150,00
Slide 22: Launched new training centres, deployed additional FFS to our network
CIVIL AVIATION Launched new training centres, deployed additional FFS to our network CAE Air Traffic Services 2024 CAE Vienna 2025 CAE Las Vegas Now Open CAE Singapore Now Open SIMCOM Lake Nona Now Open CAE Sydney Now Open CAE Savannah Now Open CAE Athens Now Open 22 Information confidentielle et/ou
Slide 23: Secular tailwinds support adjusted backlog growth and margin expansion
CIVIL AVIATION Secular tailwinds support adjusted backlog* growth and margin expansion 7,000 Civil backlog 50% higher vs. FY21 25% 6,500 6,000 20% 5,500 5,000 4,500 15% 4,000 3,500 3,000 10% FY20 FY21 FY22 FY23 FY24 Adjusted Backlog ($M) (Left) Adjusted SOI Margin* (%) (Right) Acceleration in adjust
Slide 24: Defense & Security
Defense & Security Making the world a safer place through enhanced mission readiness
Slide 25: Well-positioned to address new realities in the defence environment
DEFENSE & SECURITY Well-positioned to address new realities in the defence environment The global threat environment and budget priorities are accelerating demand for digital immersion solutions ▪ Focus has shifted from asymmetric to near-peer threats ▪ Budget priorities driving shift from live trai
Slide 26: Training, simulation, and solutions provider across key domains
DEFENSE & SECURITY Training, simulation, and solutions provider across key domains Customer Needs Enabling Capabilities Market Disruptor • Integrated and adaptive learning • Enhance learning and training A Modeling & Simulation Training Efficacy efficacy through data driven (M&S) Environment that in
Slide 27: Our broad global defence market presence
DEFENSE & SECURITY Our broad global defence market presence 40+ Countries D&S has locations in key growth markets 85+ Washington, DC Tampa, FL Platforms Arlington, TX Montreal, QC Ottawa, ON 145+ Burgess Hill, UK Stolberg, Germany Sites Abu Dhabi, UAE Sydney, Australia 6,000 Employees Enhancing trai
Slide 28: Transforming and accelerating Defense through adjusted backlog renewal
DEFENSE & SECURITY Transforming and accelerating Defense for profitable growth through adjusted backlog* renewal and execution 12,000 10,000 8,000 6,000 4,000 2,000 0 FY20 FY21 FY22 FY23 FY24 FYTD Q1 25# FY25 Revenue ($M) Adjusted Backlog* ($M) Growth through increasing our bid size and scale *Non-I
Slide 29: Transformational wins paving the way forward for Defense
DEFENSE & SECURITY Transformational wins paving the way forward for Defense Future Aircrew Training Program (FAcT) ▪ SkyAlyne JV with KF Aerospace ▪ Generational training opportunity covering all aspects of the required training and in-service support to train Canadian military pilots, Air Combat Sy
Slide 30: Financials
Financials* Q1 FY25 Financial Statements Q1 FY25 Management Discussion & Analysis *Comparative figures have been reclassified to reflect discontinued operations 30 CAE Inc. Proprietary Information and/or Confidential