Slide 1: Investor Presentation
Investor Presentation May 22, 2020 Your worldwide training partner of choice
Slide 2: Caution regarding forward-looking statements
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 outlook, future
Slide 3: 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.
Slide 4: CAE at a glance
CAE at a glance Leader in three business segments Civil Aviation Training Solutions Defence and Security Healthcare ▪ Commercial Aviation Training ▪ Training Systems Integrator ▪ Patient simulation ▪ Business Aviation Training ▪ Mission support solutions ▪ Imaging/Interventional simulation ▪ Trainin
Slide 5: CAE at a glance: Total FY20 revenue $3.6B
CAE at a glance Diversified base of business with a high degree of recurring revenue U.S.A. 3 43 Asia Australia 37 % 60 % Canada 40 % 34 Central and 60 South America Middle East 23 Approximate value including JV sales Civil Aviation Training Solutions Europe Services Defence and Security Products He
Slide 6: Six pillars of strength underlie CAE's strategy and investment thesis
Six pillars of strength underlie CAE’s strategy and investment thesis Strong Underlying competitive secular moat tailwinds Headroom Potential in large for superior markets returns High degree Culture of recurring of innovation business 6 CAE Inc. Proprietary Information and/or Confidential
Slide 7: Unmatched global reach
Unmatched global reach Corporate head office Civil Aviation Training Solutions 160+ 35+ 10,500+ Defence & Security Healthcare locations countries employees 7 CAE Inc. Proprietary Information and/or Confidential
Slide 8: FY20 select performance highlights
FY20 select performance highlights +10% $3.3B $3.6B +7 % $1.25 $1.34 +21 % $590.4M $487.4M Annual SOI Earnings before specific Revenue Per Share 1,2 items FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 10.7 % 12.9% +8 % $323.8M $351.2M 98 % 10.7% Lower Return on Conversion of Capital Free Net Income to E
Slide 9: An ESG-focused company at its core
An ESG-focused company at its core Proud of the societal benefits of our solutions CAE helps make air safer - Ensures defence forces are mission-ready - Makes healthcare safer + Training via simulation helps save millions of gallons of fuel Reach carbon neutrality Focus on diversity and inclusion He
Slide 10: Civil Aviation Training Solutions
Civil Aviation Training Solutions Your worldwide training partner of choice
Slide 11: Headroom in a large market
CIVIL AVIATION TRAINING SOLUTIONS Headroom in a large market Civil Training Market $4.3B 38% CAE CAE has potential to increase share in a large and growing market 11 CAEInc. CAE Inc.Proprietary Proprietary Information Information and/or and/orConfidential Confidential
Slide 12: World's largest civil aviation training network
CIVIL AVIATION TRAINING SOLUTIONS World’s largest civil aviation training network 170+ Aircraft 300+ Full Flight Simulators (FFS) 60+ Training Locations 1M+ hours Annual Training Delivery 135,000+ pilots Trained Every Year 12 CAEInc. CAE Inc.Proprietary Proprietary Information Information and/or and
Slide 13: 70+ years of innovation and industry thought leadership
CIVIL AVIATION TRAINING SOLUTIONS 70+ years of innovation and industry thought leadership Introduced CAE Developed the Launched Project Launched the RiseTM Training Founded in 1947, world's first level- Strengthened Launched the Digital Intelligence Launched a global 7000XR FFS – the System – Real-t
Slide 14: Defence & Security
Defence & Security Your worldwide training partner of choice
Slide 15: Defence Global Presence
DEFENCE & SECURITY Defence Global Presence 35+ COUNTRIES 120+ SITES 70+ PLATFORMS REPRODUCED Operations strategically located in key growth markets. Providing training support services in 120 plus sites 15 CAEInc. CAE Inc.Proprietary Proprietary Information Information and/or and/orConfidential Conf
Slide 16: Defence Market Drivers
DEFENCE & SECURITY Defence Market Drivers Strong defence Requirement to Increased use of Propensity to increase spending maintain Live-Virtual-Constructive outsourcing of in all major markets mission readiness solutions for training and mission Integrated Mission Training solutions Strong budgets, t
Slide 17: Defence Addressable Market
DEFENCE & SECURITY Defence Addressable Market $22B $1.3B CAE Defence Integrated training solutions with Live, Virtual and Constructive components Defence has significant headroom in a $22B addressable market 17 CAEInc. CAE Inc.Proprietary Proprietary Information Information and/or and/orConfidential
Slide 18: Digital Innovation in Defence
DEFENCE & SECURITY Digital Innovation in Defence CAE Trax Academy CAE Medallion e-Series Synthetic Environments • CAE Rise enabled virtual coach uses real-time • 360-degree immersive visual system offers a • High fidelity synthetic environment for decision data to provide immediate and actionable tu
Slide 19: Proven Training Systems Integration Track Record
DEFENCE & SECURITY Proven Training Systems Integration Track Record US Army US Navy US Air Force Royal Canadian Air Force • Fixed-Wing Flight Aircrew Training Centre • T45/T6 Goshawk/ Texan Aircrew Training • KC135 Stratotanker Aircrew Training • NATO Flying Training in Canada (NFTC) • UH72A Lakota
Slide 20: Healthcare
Healthcare Your worldwide training partner of choice
Slide 21: Why CAE entered healthcare
CAE HEALTHCARE Why CAE entered healthcare $ Desire Synergies with CAE’s Digital transformation Shift to value-based to adopt aviation next generation enables data-driven care aligns practices best practices training solutions care and training with patient outcomes Opportunity to lead in a potential
Slide 22: Improving patient safety
CAE HEALTHCARE CAE Healthcare mission Improving patient safety Making healthcare safer 22 CAEInc. CAE Inc.Proprietary Proprietary Information Information and/or and/orConfidential Confidential
Slide 23: CAE healthcare market
CAE HEALTHCARE CAE healthcare market NURSING HOSPITAL INDUSTRY/OEM SOLUTIONS MILITARY DISASTER RESPONSE EMERGENCY MEDICAL SERVICES 23 CAEInc. CAE Inc.Proprietary Proprietary Information Information and/or and/orConfidential Confidential
Slide 24: Innovative and broad portfolio of training solutions
CAE HEALTHCARE Innovative and broad portfolio of training solutions Imaging Simulation Interventional Simulation Patient Simulation Vimedix Ultrasound Augmented Reality NeuroVR | EndoVR | CathLabVR Blue Phantom Ultrasound Models LapVR | Surgical Cut Suits Center Management Curriculum Learning Space
Slide 25: Thought leadership in a crisis
CAE HEALTHCARE Thought leadership in a crisis CAE is introducing a full portfolio of next generation, SaaS distant learning and virtual CAE Healthcare simulation solutions 25 CAEInc. CAE Inc.Proprietary Proprietary Information Information and/or and/orConfidential Confidential
Slide 26: Financial highlights
Financial highlights Your worldwide training partner of choice
Slide 27: Q4 FY20 Business Highlights
CAE’S PERFORMANCE – Q4 FY20 Q4 FY20 Business Highlights Q4 FY20 EPS $0.46 vs. $0.48 in prior year* Revenue $977.3M (-4% YoY) Operating profit $193.9M (+9% YoY*) Free cash flow $185.1M compared to $116.8M to last year Book-to-sales 0.80x Total backlog $9.5B *Before specific items 27 CAE Inc. Propriet
Slide 28: Consolidated Financial Results
CAE’S PERFORMANCE – Q4 FY20 Consolidated Financial Results Summary of Consolidated Results Three months ended March 30 (amounts in millions, except per share amounts) 2020 *** 2019 ** Revenue $ 977.3 $ 1022.0 Gross profit 311.7 288.0 Operating Profit 193.9 177.2 As % of revenue 19.8% 16.7% Net incom
Slide 29: Cash Movements
CAE’S PERFORMANCE – Q4 FY20 Cash Movements Consolidated Cash Movements Three months ended March 30 (amounts in millions) 2020 2019 Cash provided by operating activities $ 165.2 $ 131.4 (before changes in non-cash W/C) Changes in non-cash working capital 81.1 34.9 Maintenance capex and other assets (