Slide 1: Investor Presentation Q4 FY2013
Investor Presentation Q4 FY2013
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation, including, but not limited to, statements that are not historical facts, are forward-looking and are subject to important risks, uncertainties and assumptions. The results or events predicted in these forward-looking statements
Slide 3: Our Vision
Our Vision To be the partner of choice for customers operating in complex, mission-critical environments by providing the most innovative modeling- and simulation-based solutions to enhance safety, improve efficiency and help solve challenging problems CAE Inc. Confidential and/or Proprietary Inform
Slide 4: About CAE
About CAE § Approximately 8,000 employees with ½ international – Emerging markets leader § Critical mass in aviation training – 100,000+ crewmembers trained by CAE annually – End-to-end solutions provider – Largest installed base of civil and military aviation simulators supplied to industry § Ex
Slide 5: Strong Position Across Segments
Strong Position Across Segments CAE Inc. Confidential and/or Proprietary Information 5
Slide 6: Integrated Go-to-Market Approach
Integrated Go-to-Market Approach CAE offers a broad portfolio of integrated products and services to customers across segments CAE Inc. Confidential and/or Proprietary Information 6
Slide 7: Diversified and Balanced
Diversified and Balanced A growing proportion of CAE’s revenue comes from customers in high growth emerging markets CAE Inc. Confidential and/or Proprietary Information 7
Slide 8: Segmented Financial Results YTD Q4 FY2013
YTD Q4 FY2013 Segmented Financial Results Simulation Products Training & Services TOTAL (amounts in millions) Actual Prior year Actual Prior year Actual Prior year Revenue 402.4 342.5 755.6 498.4 1,158.0 840.9 CIVIL SOI 73.6 51.6 121.5 122.2 195.1 173.8 % 18.3% 15.1% 16.1% 24.5% 16.8% 20.7% MILITARY
Slide 9: Civil
Civil 9
Slide 10: Civil Strategic Focus
Civil Strategic Focus Maintaining Core Leadership Expanding Core § Commercial and Business § Ab-Initio Pilot Training: Aviation Training CAE Oxford Aviation Academy § Simulation Products: § Pilot and Maintenance crew Full-Flight Simulators, Training sourcing: CAE Parc Aviation Devices, Updates §
Slide 11: Civil Market Drivers
Civil Market Drivers Active Fleet Load Factors Pilot Movement CAE’s strategy is to increase Emerging dependence on the Markets global active aircraft fleet to bolster New Pilot recurring revenue Demand while maintaining leadership with complete end-to- Pilot end solutions Certification Regulations N
Slide 12: Civil Comprehensive Portfolio of Training Services
Civil Comprehensive Portfolio of Training Services Recruit Ab-Initio Type rating Placement CAE offers the most comprehensive portfolio of services to recruit, train and place aviation professionals with end-to-end solutions CAE Inc. Confidential and/or Proprietary Information 12
Slide 13: Civil Broadest Reach in Global Training
Civil Broadest Reach in Global Training Stavanger Oslo Stockholm Aberdeen Manchester Oxford Copenhagen Vancouver Montreal Amsterdam Gatwick Brussels Toronto Burgess Hill San Francisco Prague Morristown Paris Phoenix Beijing Charlotte Sesto Calende Seoul Tokyo Dallas Barcelona Rome Shanghai Miami Mad
Slide 14: Defence
CAE Defence 14
Slide 15: Defence Strategic Focus
Defence Strategic Focus Maintaining Core Leadership Expanding Core Virtual Air Simulation Products Land Simulation Products & Services § Technology Leadership Naval Simulation Products & Services § Technology Upgrades and Updates Critical Infrastructure Support § In-Service Support Integrated Ent
Slide 16: Defence Market Drivers
Defence Market Drivers § Training and maintenance services sourcing from industry Installed Based § Mission rehearsal Platform § Lower cost Deliveries, Upgrades, Life Extensions § Modeling and Simulation use Emphasis on across defense lifecycle Maintaining Readiness Our strategy involves positio
Slide 17: Defence Well Positioned on Enduring Aircraft Platforms
Defence Well Positioned on Enduring Aircraft Platforms United States MH-60 OFT P-8A OFT C-130J FMS C-5 WST KC-135 AST United Kingdom AW-101 OFT C-130J DMS CH-47 DMS Hawk 128 FMS SA 330 DMS Germany EC-135 FFS Tornado FMS CH-53 FMS NH-90 FMS UH-1D FFS Canada C-130J FMS CH-47 WST CP-140 OMS CH-146 FMS
Slide 18: Defence Global Customer Base
Defence Global Customer Base Malaysia Algeria South Korea Taiwan Turkey Poland Saudi Arabia Belgium Brazil Japan Spain Denmark Egypt Indonesia Nigeria France Morocco Norway Israel Oman Sweden Thailand Netherlands UAE Austria South Africa Greece Peru Finland New Zealand Argentina Bolivia Chile Kuwait
Slide 19: Defence Global Operations
Defence Global Operations Benson Burgess Hill Stolberg Ottawa Halifax Sesto Calende Montréal Orlando Tampa Bangalore Singapore Sydney Largest Canadian defence company Operations strategically located in 8 geographic markets Supporting customer operations at over 70 sites CAE Inc. Confidential and/or
Slide 20: New Core Markets
New Core Markets 20
Slide 21: New Core Markets
New Core Markets Leveraging our core capabilities to solve common challenges in all our markets Skilled Labour Common Challenges Shortage Need to Demand and Drivers Across Rehearse from Critical Emerging CAE’s Markets Missions Markets §Civil Aviation Modeling Simulation Customer Training §Defence
Slide 22: CAE Healthcare Solutions Offering
CAE Healthcare Solutions Offering CAE Inc. Confidential and/or Proprietary Information 22
Slide 23: CAE Mining Solutions Offering
CAE Mining Solutions Offering Integrated Training Simulation Software Consulting Operation Centre Training delivery across Integrate CAE simulation Mine planning and Improve business Leverage centralized a number of disciplines and training expertise in operations optimization outcomes command and c
Slide 24: CAE Investment Thesis: Upside Potential
CAE Investment Thesis Upside Potential § Leveraged to civil aviation installed base and expansion § Strong long term industry dynamics and trends – Global pilot shortage – Training outsourcing – Record aircraft backlog with high delivery rates to airlines – Increasing demand for business jets inte
Slide 25: CAE Investment Thesis: Downside Protection
CAE Investment Thesis Downside Protection § Well diversified revenue mix § Good platform exposure and country diversity in Defence § Solid financial position § Healthy backlog with long contracts and recurring revenue § Market leadership supported by strong relationships with key OEMs and airli
Slide 26: Capital Allocation Priorities
Capital Allocation Priorities Capital Allocation Priorities 1. Invest in growth – Where demand has been secured and we have a clear view to target returns 2. Balance current and long term shareholder returns – Increased quarterly dividend twice in two years 3. De-leverage balance sheet – Optimize ca
Slide 27: Appendix
Appendix CAE Inc. and/or Proprietary Information Confidential 27
Slide 28: Main Competitors
Main Competitors CIVIL MILITARY SIMULATION PRODUCTS TRAINING & SERVICES CAE Inc. Confidential and/or Proprietary Information 28
Slide 29: First Mover in Emerging Markets
First Mover in Emerging Markets India Middle East Latin America Southeast Asia China Annual growth in passenger air 8.4% 6.4% 6.6% 6.5% 7.0% travel¹ FFS installed base #1 #1 #1 #1 #1 market position Share of FFS 68% 62% 44% 50% 70% installed base2 Sales of defense simulators 11 21 2 25 - First sale
Slide 30: YTD Q4 FY2013 Consolidated Financial Results
YTD Q4 FY2013 Consolidated Financial Results Twelve months Summary of Consolidated Results ended March 31 (amounts in millions) 2013 2012 Revenue $2,104.5 $1,821.2 Total segment operating income 314.6 302.1 Operating profit 245.7 302.1 As % of revenue 11.7% 16.6% Net income 142.4 182.0 Net income at
Slide 31: Q4 FY2013 Consolidated Financial Results
Q4 FY2013 Consolidated Financial Results Three months Summary of Consolidated Results ended March 31 (amounts in millions) 2013 2012 Revenue $587.9 $506.7 Total segment operating income 85.3 88.7 Operating profit 71.6 88.7 As % of revenue 12.2% 17.5% Net income 46.4 53.7 Net income attributable to e
Slide 32: Q4 FY2013 Segmented Financial Results
Q4 FY2013 Segmented Financial Results Simulation Products Training & Services TOTAL (amounts in millions) Actual Prior year Actual Prior year Actual Prior year Revenue 129.8 83.1 201.8 132.3 331.6 215.4 CIVIL SOI 22.3 14.0 31.8 30.3 54.1 44.3 % 17.2% 16.8% 15.8% 22.9% 16.3% 20.6% MILITARY Revenue 15
Slide 33: Cash Movements (Three Months)
Cash Movements Three months ended Consolidated Cash Movements March 31 (amounts in millions) 2013 2012 2011 Cash provided by operating activities (before changes in non-cash W/C) $ 81.0 $ 97.8 $97.2 Changes in non-cash working capital 47.3 24.3 64.9 Maintenance capex and others assets (10.6) (13.1)
Slide 34: Cash Movements (Twelve Months)
Cash Movements Twelve months Consolidated Cash Movements ended March 31 (amounts in millions) 2013 2012 Cash provided by operating activities $ 265.8 $ 305.6 (before changes in non-cash W/C) Changes in non-cash working capital (61.7) (71.7) Maintenance capex and others assets (57.0) (61.2) Proceeds
Slide 35: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity The approximate annual impact of a one cent change in the Canadian dollar against each of our other three main operating currencies Exposure Op. Net Revenue Hedging (amounts in millions) Income Exposure U.S. dollar (US$ or USD) 10.4 2.8 (2.2) 0.6 Euro € 3.9 0.2 (0.1) 0.2
Slide 36: CAE
CAE