Slide 1: Investor Presentation Second Quarter Fiscal Year 2025
Investor Presentation Second Quarter Fiscal Year 2025 Data as of November 12, 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: Overview: Mission and Vision
OVERVIEW CAE is a technology company with a mission and vision focused on safety, efficiency and readiness Our mission To lead at the frontier of digital immersion with high-tech training and operational support solutions to make the world a . safer place. Our vision To be the worldwide partner of c
Slide 6: Essential partner in moving our world forward safely
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: Total Revenue
Total Revenue Broad and globally diverse Defense and 43 Security % base of business in two core 57 Civil Aviation markets with significant sources of recurring Products/Services Mix* revenue Services Products 68 32 % $4.3B $918.4M 40+ 240+ ~13,000 FY24 Revenue FY24 Adj EBITDA# countries locations em
Slide 8: CAE innovations that elevate future training standards
OVERVIEW CAE innovations that help 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
Slide 9: Secular tailwinds across all markets
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 10: 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 ~$22.7B 5% 5% Canada IPAC 17% ~36% EMEA 73
Slide 11: Increasing adjusted backlog underpins growth
OVERVIEW Increasing adjusted backlog* underpins growth for a bigger, stronger, more profitable CAE 20,000 18,000 16,000 CAE 14,000 adjusted backlog up 12,000 ~67%** 10,000 8,000 6,000 FY23 FY24 Q2 FY25 FYTD 25 Adjusted Backlog* ($M) *Non-IFRS and other financial measures (See slide 4) **Reflects per
Slide 12: Capital Allocation Priorities
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 13: Path to further strengthening our financial positioning
CAPITAL ALLOCATION PRIORITIES Path to further strengthening our financial positioning ~2.97x Net Debt/ 4.0x Adjusted EBITDA 300% in Q2 FY25** 3.5x 250% 3.0x Target 100% 200% 2.5x FCF conversion* 2.0x 150% 1.5x 100% 1.0x 50% 0.5x 0.0x 0% FY18 FY19 FY20 FY21 FY22 FY 23 FY24 Q2 FY25 Net Debt / Adjusted
Slide 14: Organic capital driving recurring revenues and compounding growth
CAPITAL ALLOCATION PRIORITIES Organic capital driving recurring revenues and accretive compounding growth Year of FFS Pre-tax Return (%) on Organic Capital* Deployed $1,077M+ deployment in Civil Training (FY17-FY24) 65% FY17 61% 60% FY18 organic capital* 55% FY19 invested in FY17-FY24 50% FY20 48% 4
Slide 15: Civil Aviation
Civil Aviation Elevating and advancing human performance
Slide 16: Market leader with strong secular growth dynamics
CIVIL AVIATION Market leader with strong secular growth dynamics Aviation Aviation Simulation Training ▪ Full Flight Simulators ▪ Pilot Training ▪ Flight Training Devices ▪ Cadet Academies Leading provider ▪ Cabin Crew Training poised to benefit ▪ Air Traffic Control Training from large backlog Larg
Slide 17: Strong demand for new civil aviation professionals
CIVIL AVIATION Strong demand for new civil aviation professionals 1.3 million 284K new pilots 402K new aircraft maintenance technicians 599K new cabin crew Large demand for new personnel due to industry growth and impending retirements Source: CAE 2023 Aviation Talent Forecast 17 Information confide
Slide 18: Largest aviation footprint, close to our customers
CIVIL AVIATION With the largest aviation footprint, we are always close to our customers #1 in Civil Aviation Training 1,300 + Full Flight Simulators Manufactured 340+ Full Flight Simulators in our Training Network 130+ Aircraft 70+ Locations ~1.3M hours Simulator Training Delivered Annually* 150,00
Slide 19: Launched new training centres, deployed additional FFS
CIVIL AVIATION Launched new training centres, deployed additional FFS to our network CAE Air Traffic Services Now Open Training Centre CAE Vienna 2025 CAE Las Vegas Now Open CAE Singapore Now Open CAE Lake Nona Now Open CAE Sydney Now Open CAE Savannah Now Open CAE Athens Now Open 19 Information con
Slide 20: Secular tailwinds support adjusted backlog growth and margin expansion
CIVIL AVIATION Secular tailwinds support adjusted backlog* growth and margin expansion 7,000 25% Civil backlog 50% higher vs. FY21 6,000 20% 5,000 15% 4,000 3,000 10% FY20 FY21 FY22 FY23 FY24 Adjusted Backlog ($M) (Left) Adjusted SOI Margin* (%) (Right) * Non-IFRS and other financial measures (See s
Slide 21: SIMCOM Aviation Training JV Consolidation
OVERVIEW Organic capital deployment in a core market: SIMCOM Aviation Training JV Consolidation On 11/4/24, CAE announced a USD $230 million investment to consolidate ownership of its SIMCOM Aviation Training JV Expands CAE’s presence in a core aviation training market, increases its sources of recu
Slide 22: Defense & Security
Defense & Security Making the world a safer place through enhanced mission readiness
Slide 23: Well-positioned to address realities in the defence environment
DEFENSE & SECURITY Well-positioned to address realities in the defence environment The global threat environment and budget priorities are accelerating demand for digital immersion solutions ▪ Focus has shifted from asymmetric to near-peer threats ▪ Defence forces need to train in multi-domain opera
Slide 24: Our broad global defence market presence
DEFENSE & SECURITY Our broad global defence market presence 40+ Countries D&S has locations in key growth markets 85+ Washington, DC Tampa, FL Platforms Arlington, TX Montreal, QC Ottawa, ON 145+ Burgess Hill, UK Stolberg, Germany Sites Abu Dhabi, UAE Sydney, Australia 6,000 Employees Enhancing trai
Slide 25: Transforming and accelerating Defense for profitable growth
DEFENSE & SECURITY Transforming and accelerating Defense for profitable growth through adjusted backlog* renewal and execution 12,000 10,000 8,000 6,000 4,000 2,000 0 FY20 FY21 FY22 FY23 FY24 FYTD FYTD25 25# Revenue ($M) Adjusted Backlog* ($M) Growth through increasing our bid size and scale *Non-IF
Slide 26: 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 27: Applying civil aviation expertise to defence training
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 28: Positive sustainability impact is built into CAE's strategy
Sustainability Positive sustainability impact is built-in CAE’s business strategy Civil Aviation Defense & Security Moving aviation safety, diversity and industry Noble mission to support preparedness; fostering sovereignty, decarbonization forward stability and safety through deterrence Committed t
Slide 29: Financials
Financials* Q2 FY25 Financial Statements Q2 FY25 Management Discussion & Analysis *Comparative figures have been reclassified to reflect discontinued operations 29 CAE Inc. Proprietary Information and/or Confidential