#1Investor Presentation March 2022 CAE CAE#2Disclaimer This presentation has been prepared by CAE Inc. ("CAE" or the "Company") solely for information purposes. External Sources and Data (including Financial) Where this presentation quotes any information or statistics from any external source, it should not be interpreted that the Company has adopted or endorsed such information or statistics as being accurate. We advise you that some of the information presented herein is based on or derived from statements by third parties, has not been independently verified by or on behalf of the Company, and that no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purpose whatsoever. Market Data This presentation may contain or reference certain market, industry and peer group data which is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although the Company believes these sources to be generally reliable, such information is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other inherent limitations and uncertainties. The Company has not independently verified any of the data from third party sources referred to in this presentation and accordingly, the accuracy and completeness of such data is not guaranteed. In addition, certain of the data contained in this presentation come from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the contained estimates or research in this presentation. Currency All amounts in this presentation are expressed in Canadian dollars unless otherwise indicated. CAE 2 CAE Inc. Proprietary Information and/or Confidential#3Disclaimer 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 revenues, capital spending, expansions and new initiatives, financial obligations, available liquidities, expected sales, general economic outlook, prospects and trends of an industry, expected annual recurring cost savings from operational excellence programs, estimated addressable markets, statements relating to our acquisition of L3H MT and our proposed acquisition of Sabre's AirCentre airline operations portfolio, CAE's access to capital resources, the expected accretion in various financial metrics, expectations regarding anticipated cost savings and synergies, the strength, complementarity and compatibility of the L3H MT and Sabre acquisitions with our existing business and teams, other anticipated benefits of the L3H MT and Sabre acquisitions and their impact on our future growth, results of operations, performance, business, prospects and opportunities, our business outlook, objectives, development, plans, growth strategies and other strategic priorities, and our leadership position in our markets and other statements that are not historical facts. Forward-looking statements normally contain words like believe, expect, anticipate, plan, intend, continue, estimate, may, will, should, strategy, future and similar expressions. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties associated with our business which may cause actual results in future periods to differ materially from results indicated in forward-looking statements. While these statements are based on management's expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that we believe are reasonable and appropriate in the circumstances, readers are cautioned not to place undue reliance on these forward-looking statements as there is a risk that they may not be accurate. The forward-looking statements contained in this presentation describe our expectations as of February 11, 2022 and, accordingly, are subject to change after such date. Except as required by law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking information and statements contained in this presentation are expressly qualified by this cautionary statement. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this presentation. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. You will find more information about risk factors in CAE's MD&A for the year ended March 31, 2021 and in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under our profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Any one or more of the factors described above and elsewhere in this presentation may be exacerbated by the continuing COVID-19 pandemic and may have a heightened negative impact on CAE's business, results of operations and financial condition. Accordingly, 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 in the MD&A and elsewhere in this presentation are not necessarily the only ones we face; additional risks and uncertainties that are presently unknown to us or that we may currently deem immaterial may adversely affect our business. 3 CAE Inc. Proprietary Information and/or Confidential CAE#4Disclaimer Material assumptions The forward-looking statements set out in this presentation are based on certain assumptions including, without limitation: the anticipated negative impacts of the COVID-19 pandemic on our businesses, operating results, cash flows and/or financial condition, including the intended effect of mitigation measures implemented as a result of the COVID-19 pandemic and the timing and degree of easing of global COVID-19-related mobility restrictions, the prevailing market conditions, customer receptivity to CAE's training and operational support solutions, the accuracy of our estimates of addressable markets and market opportunity, the realization of anticipated annual recurring cost savings and other intended benefits from recent restructuring initiatives and operational excellence programs, the stability of foreign exchange rates, the ability to hedge exposures to fluctuations in interest rates and foreign exchange rates, the availability of borrowings to be drawn down under, and the utilization, of one or more of our senior credit agreements, our available liquidity from cash and cash equivalents, undrawn amounts on our revolving credit facilities, the balance available under our receivable purchase program, our cash flows from operations and continued access to debt funding will be sufficient to meet financial requirements in the foreseeable future, access to expected capital resources within anticipated timeframes, no material financial, operational or competitive consequences from changes in regulations affecting our business, our ability to retain and attract new business, the completion of the proposed Sabre acquisition, the integration and the realization of the anticipated benefits and synergies of the proposed Sabre acquisition in the timeframe anticipated, our ability to achieve synergies and maintain market position arising from successful integration plans relating to the L3H MT acquisition, our ability to otherwise complete the integration of the L3H MT business acquired within anticipated time periods and at expected cost levels, our ability to attract and retain key employees in connection with the L3H MT acquisition, management's estimates and expectations in relation to future economic and business conditions and other factors in relation to the L3H MT acquisition and resulting impact on growth and accretion in various financial metrics, the realization of the expected strategic, financial and other benefits of the L3H MT acquisition in the timeframe anticipated, economic and political environments and industry conditions, the accuracy and completeness of public and other disclosure, including financial disclosure, by L3Harris Technologies, absence of significant undisclosed costs or liabilities associated with the L3H MT acquisition. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this presentation, refer to the applicable reportable segment in CAE's MD&A for the year ended March 31, 2021 and in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under our profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Given the impact of the changing circumstances surrounding the COVID-19 pandemic and the related response from CAE, governments, regulatory authorities, businesses and customers, there is inherently more uncertainty associated with CAE's assumptions. Accordingly, the assumptions outlined in this presentation and, consequently, the forward-looking statements based on such assumptions, may turn out to be inaccurate. Non-GAAP Measures Except as otherwise indicated, all financial information has been reported in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). This presentation includes non-GAAP and other financial measures. Non-GAAP measures are useful supplemental information but do not have a standardized meaning according to GAAP. These measures should not be confused with, or used as an alternative for, performance measures calculated according to GAAP. Furthermore, these non-GAAP measures should not be compared with similarly titled measures provided or used by other companies. Management believes that providing certain non-GAAP measures provides users with a better understanding of our results and trends and provides additional information on our financial and operating performance. For non-GAAP and other financial measures monitored by CAE, and a reconciliation of such measures to the most directly comparable measure under GAAP, please refer to Section 5 of CAE's MD&A for the quarter ended December 31, 2021 filed with the Canadian Securities Administrators available on our website (www.cae.com) and on SEDAR (www.sedar.com). Non-GAAP and other financial measure definitions and reconciliations to the most directly comparable measures under GAAP can also be found in the Appendix of this presentation. 4 CAE Inc. Proprietary Information and/or Confidential CAE#5OVERVIEW CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place LO 5 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 choice in civil aviation, defence & security, and healthcare by revolutionizing our customers' training and critical operations with digitally immersive solutions to elevate safety, efficiency and readiness. Corporate social responsibility (CSR) Integral to who CAE is as a company and how our organization makes a difference in the world. CSR is embedded in our culture, and drives our priorities, decisions and actions. CAE Inc. Proprietary Information and/or Confidential CAE#6OVERVIEW CAE is a world leader in training and operational support solutions with three core business units Civil Aviation Training Solutions Defence and Security Healthcare We play a key role in making air travel safer as the world's premier aviation training business delivering over 1 million hours of training annually* We are a world leading platform agnostic, training and simulation pure play ensuring mission readiness by integrating solutions across all five domains We help make healthcare safer and improve patient outcomes by developing healthcare professionals through technology, education, and training 6 *FY2019 and FY2020 CAE Inc. Proprietary Information and/or Confidential CAE#7OVERVIEW Diversified global business For the year ended March 31, 2021 ° Hewalan Islands ARCTIC OCEAN U.S. BEAUFORT SEA CANADA NORTH PACIFIC OCEAN UNITEDOSTAT SOUTH PACIFIC MEXICO GULF OF MEXICO THE SANAMAS CORTA RICA GREENLAND Greenland (DENMARK) SEA BAFFIN BAY CARIBBEAN SEA COLOMBIA VENEZUELA NORTH ATLANTIC OCEAN BRAZIL OCEAN BOLIVIA PARAGUAY CHILE ARGENTINA NORWEGIAN SEA SWEDEN FINLAND BARENTS SEA BELARUS POLAND UKRAINE FRANCE KARA SEA RUSSIA KAZAKHSTAN MONGOLIA GEORGIA PORTUGAL AAAA VERSTAN GREECE TURKEY TUNISIA CYPRUS AAQ MONSTAN IRAN MOROCCO ALGERIA PAKISTAN LIBYA EGYPT BANGLADE Sa SAUDI ARABIA INDIA MAURITANIA MALI NIGER SUDAN CA CHAD ARABIAN SEA BAY OF BENGAL SERRA LEONE NIGERIA SOUTH BUDAN ETHIOPIA EQUATORIAL GUINEA SOMALIA KENYA GABON DEM. REP.- OF THE CONGO TANZANIA LANKA ANGOLA ZAMBIA MOZAMBIQUE SOUTH ATLANTIC BOTENAA MADAGASKAR KAMBA INDIAN OCEAN OCEAN Corporate head office Civil Aviation Training Solutions Defence & Security Healthcare Approximate value including JV sales $3.0B FY21 Revenue 7 LAND SOUTH AFRICA too 180+ locations CHINA CAE Inc. Proprietary Information and/or Confidential ARCTIC OCEAN PHILIPPINE SEA WETNAM PHILIPPINES LAYSLA NDONE EAST SIBERIAN SEA BERING SEA SEA OF OKHOTSK FEDERATED STATES OF MICRONESIA PALAU NORTH PACIFIC OCEAN MARSHALL BLANDS NAURU KORBATI NEW GUINEA SOLOMON ISLANDS TUVALU AUSTRALIA Tasmani CORAL SEA TASMAN SEA Total Revenue Healthcare 41 12 % 47 Defence and Security Civil Aviation Training Solutions Products/Service Mix* Products 40 % 60 Services NEW ZEALAND Geographic Mix 44 U.S.A. % 33 11,000+ employees Europe & UK 23 CAE Rest of the World#8OVERVIEW We are a global leader in immersive training environments Knowledge Leadership + Industrial Champion + Advanced Technologies 2,500+ engineers Electronics Systems ■ Mechanical & electrical ☐ Software ■ Talented manufacturing workforce Best-in-class global supply chain Broad global footprint ■ World-class operational and functional processes ■ Short prototype-to-production cycle time Highly agile organization Deep technology expertise ■ Virtual and Augmented Reality ■ Remote (real-time) networking Synthetic Environments ■ Cloud and Al solutions ■ Complex man-to-machine interface 8 CAE Inc. Proprietary Information and/or Confidential CAE#99 OVERVIEW CAE's 8 pillars of strength Industry leader with a strong competitive + moat Potential for compounding growth and superior returns over the long term '8 Pillars of Strength' underlie CAE's compelling investment thesis ☐ Market leader ☐ Technology-focused ☐ Secular growth ☐ Recurring revenues C High degree of recurring business Headroom in large markets Culture of innovation, empowerment, excellence and integrity Solid financial position and highly cash generative business model Excellent and diverse team with a unique social impact on safety Technology and industry thought leader CAE Inc. Proprietary Information and/or Confidential CAE#10Social impact is at the heart of the Company 10 Climate action Carbo-neutral for Scope 1 and Scope 2 emissions and on employee business travel (Partial Scope 3) Reduction of GHG emissions Quebec electricity: 99.64% from renewable sources Impact on the industry decarbonization For FY21, 5M+ tonnes CO2e emissions avoided due to our simulation technologies 13 CLIMATE ACTION Became the first Canadian aerospace company to become carbon neutral, in 2020 Completed the Task Force on Climate-related Financial Disclosures (TCFD) reporting since 2020 Created the Climate Change Committee to specifically address climate-related issues and integrate climate- related risks and opportunities into CAE's business strategy Committed to progressively integrate biofuel and electric aircraft into our academies. CAE and its partners CAE is the first carbon neutral Canadian aerospace company will be accelerating the technology development, the digital transformation, and knowledge for the advancement TCFD of future aircraft technologies TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES Women employees* 22.3% Women Board members* 28% Women Senior Executives* 30% GENDER EQUALITY Diversity and inclusion . . Named to the Bloomberg Gender-Equality Index for the fourth consecutive year Recognized among The Globe and Mail's Women Lead Here honorees Received Silver Parity certification from Women in Governance organization Launched Dare: an extensive 12-month program that aims to equip and inspire women to take ownership of their careers Introduced Employee Resource Groups (Parents of children with special needs, LGBTQ2+, Women in Aviation and Technology, Race and Ethnicity and Veterans) Became a signatory of United Nations Women's Empowerment Principles (WEPs) in September 2020 2019 Edition Salice mentored cadetaking programs 2021. Bloomberg Gender-Equality Index CAEWomeninFlight Ds Employee Resource Groups LIFT Women in aviation and technology * FY21 CAE Inc. Proprietary Information and/or Confidential CAE#11ESG Extensive ESG disclosure Signatory of the United Nations Global Compact UN GLOBAL Extensive reporting on recognized ESG frameworks COMPACT 3 GOOD HEALTH AND WELL-BEING 4 QUALITY EDUCATION 5 GENDER EQUALITY 8 DECENT WORK AND ECONOMIC GROWTH 13 United Nations Global Compact W GRI Empowering Sustainable Decisions SUSTAINABILITY ACCOUNTING CDP SASB STANDARDS BOARD CAE Inc. Proprietary Information and/or Confidential TCFD CLIMATE ACTION TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES S&P Global CAE#12Civil Aviation Training Solutions CAE CAE#13CIVIL AVIATION TRAINING SOLUTIONS The world's largest civil aviation training network + 170+ Aircraft 300+* Full Flight Simulators (FFS) 60+ Training Locations Vancouver⚫ ⚫ Iceland Dublin. Oslo. London Burgess Hill •Amsterdam Stockholm Copenhagen Shannon Oxford • Antwerp Brussels • Prague London Gatwick Frankfurt ⚫ Barcelona Madrid. Toronto Minneapolis • Montréal St John's ⚫ Palma de Mallorca ⚫ New Jersey Morristown San Francisco ⚫ Scottsdale Phoenix. • Dalla. Orland O Mexico City / Toluca • • Milan ⚫ Rome Istanbul Dubai Dammam ⚫ Abu Dhabi New Delhi. Gondia • 1M+ hours Annual Training Delivery (FY19, FY20) 135,000+ pilots Trained Every Year (FY19, FY20) Locations Cadet training Commercial aviation training Business aviation training Helicopter aviation training Aviation recruitment * Non-GAAP and other financial measures (see Appendix) 13 Lima⚫ • Bogotá Santiago. O Addis Ababa ⚫ • São Paulo ⚫ Johannesburg CAE Inc. Proprietary Information and/or Confidential Bangkok. Bengaluru Beijing⚫ ⚫ Seoul ⚫Tokyo Shanghai⚫ Guangzhou. • Hong Kong ⚫ Clark • Ho Chi Minh Kuala Lumpur⚫ ⚫ Singapore ⚫ Jakarta Perth Melbourne⚫ CAE#14CIVIL AVIATION TRAINING SOLUTIONS Market drivers 14 • • Demand Drivers • Pilot and maintenance training and industry regulations; Safety and efficiency imperatives of commercial airlines and business aircraft operators; Expected long-term secular global growth in air travel, including the emergence of the newer market for advanced air mobility travel; Expected long-term growth, including new aircraft deliveries and renewal of the active fleet of commercial and business aircraft; Demand for trained aviation professionals + · • Profitability Drivers Favourable business mix drivers, including large market headroom in training services Potential to increase the ratio of wet versus dry training in commercial training Expansion of operational support offering by using advanced analytics, software solutions and digital technology to enhance our value offering across the whole organization Operational excellence programs expected to realize significant annual recurring cost savings Training outsourcing and partnerships CAE's Civil Aviation Training Solutions segment is positioned as a gateway in a highly regulated, secular growth market, and it has significant headroom for growth CAE Inc. Proprietary Information and/or Confidential CAE#15CIVIL AVIATION TRAINING SOLUTIONS Headroom in a large market Civil Addressable Market ~$6.2B* 0 -30% * CAE CAE has potential to increase share in a large and growing market Source: CAE internal analysis * Market share metrics based on FY20 (pre Covid-19 revenue) 15 CAE Inc. Proprietary Information and/or Confidential CAE#16CIVIL AVIATION TRAINING SOLUTIONS We have been opportunistic with M&A FSC FY21 Acquisitions Amsterdam-based provider of total civil training solutions as well as instructor provisioning merlot.aero A leading civil aviation crew management and optimization software company + FY22 Acquisitions GLOBALJET SERVICES A leading on-location training provider of maintenance, avionics, professional development, and safety instruction for the business aviation industry. Sabre TRU SIMULATION + TRAINING A leading manufacturer of flight simulators and training devices for civil markets RB group.aero A leading provider of fully integrated solutions that modernize the way airlines interact with their crew. AirCentre Airline Operations Portfolio Announced in October 2021 Suite of flight and crew management and optimization solutions designed to enable airlines to operate their businesses with efficiency and precision CAE is capitalizing on market disruption by successfully executing acquisitions that align with its strategic priorities * Non-GAAP and other financial measures (see Appendix) 16 CAE Inc. Proprietary Information and/or Confidential CAE#17CIVIL AVIATION TRAINING SOLUTIONS Civil Flight Services - Sabre acquisitions overview 17 Market Share (% of total addressable market) 00100000 1000010010001 00000 000 010 110 Flight 001 MOVEMENT CREW FLIGHT AIRPORT IN-FLIGHT 100 100 101 000 20 20 25 25 25 25 Sabre Lufthansa Systems 10 30 NAVBLUE JEPPESEN ARINC SITA Schedule Crew foo Sabre Aircraft Airport Personnel Lufthansa Systems Passenger Crew 15 15 30 10 40 NAVBLUE JEPPESEN AINS ibssoftware merlot.aero Acquisition closed in March 2022 ■ Detailed discussions on-going regarding technology and product leadership ■ Will invest in the technology to drive customer satisfaction and best of breed product Successfully created a strong adjacent market position for CAE to grow within. Sabre Lufthansa Systems Jeppesen NAVBLUE AIMS Other CAE continues to explore opportunities to expand this portfolio CAE Inc. Proprietary Information and/or Confidential CAE#18Defence & Security CAE CAE#1919 DEFENCE & SECURITY The legacy of the three founding fathers now all under one roof Edwin Link, founder The Link Trainer Link Aviation "The Luftwaffe met its Waterloo on all the training fields of the free world where there was a battery of Link Trainers" - Air Marshall Robert Leckie, Wartime RAF Chief of Staff, WWII 1929 Edwin Link founds Link Aviation 1939 Luther Simjian founds Reflectone Corporation 1947 Ken Patrick founds САЕ 1988 CAE buys Link Military Simulation Corporation to become CAE-Link Luther Simjian, founder Reflectone Corp. Simjian's Mirror Range Estimator Trainer used in WWII Luther held 200+ patents, receiving his last at age 92 "The most important invention for me was the Range Estimation Trainer. This was the invention that put Reflectone on the map." - Luther Simjian Ken Patrick assembled what he called "a war-trained team that was extremely innovative and very technology-intensive." 1995 Link purchased by Hughes Electronics Corporation 2000 L-3 Communications buys and names L-3 Link Simulation & Training 2001 CAE purchased Reflectone to establish CAE USA Inc. 2021 CAE acquires L3Harris Technologies' Military Training to include Link, Doss Aviation and AMI Ken Patrick, founder CAE CAE's first simulator contract was from the RCAF for a CF 100 flight simulator Quarter millennium of combined experience and industry firsts! CAE Inc. Proprietary Information and/or Confidential CAE#20DEFENCE & SECURITY Defence & Security Overview 50+ Countries 20 20 120+ Sites 75+ Platforms 5,500+ D&S regional offices in key markets Employees Washington, DC (HQ) ☐ Tampa, FL Arlington, TX ■ Montreal, QC ■ Ottawa, ON Burgess Hill, UK B Stolberg, Germany Abu Dhabi, UAE ☐ Homebush, Australia CAE Defence is a world leading platform agnostic, training and simulation pure play ensuring mission readiness by integrating solutions across all five domains CAE Inc. Proprietary Information and/or Confidential CAE#21DEFENCE & SECURITY Addressing new realities in the Defence environment Primary defence documents point to common needs: 21 Allied nation defence strategies lay out priorities that address the capabilities necessary to operate in this changing, multi-domain environment These priorities are shared by our customers around the world ☐ Training in synthetic environments to reduce costs and ☐ ☐ support complex, multi-domain exercises Using Artificial Intelligence / Machine Learning to process multi-layered / disparate data for decision support Secured and distributed Common Operating Picture for Joint All-Domain Command and Control 4/11/14 Defence Command Paper (2021) NV Interim National Security Strategic Guidance (2021) Force Structure Plan & Update (2020) Strong, Secure, 15 NV Engaged (2017) We developed our strategy to align with our customer's priorities, positioning CAE to capture an increased part of the digital growth markets CAE Inc. Proprietary Information and/or Confidential Strategic Defence Policy (2018) CAE#22DEFENCE & SECURITY Defence addressable market Training Systems Integration (TSI) Live Training N195TP G120TP Virtual Training Constructive Training Learn Practice Perform ~$14B* Military Training & Simulation Market Land 7% Naval 7% Air 75% 11% Space & Cyber CAE is a world leading Training Systems Integrator with significant headroom in its addressable markets Source: CAE internal analysis *Metrics in CAD. Market size represents FY22 22 CAE Inc. Proprietary Information and/or Confidential CAE#23DEFENCE & SECURITY Market drivers 23 Demand Drivers Defence budgets; Installed base of enduring defence platforms and new customers; Attractiveness of outsourcing training, maintenance and operational support services; Pilot and aircrew recruitment, training and retention challenges faced by militaries globally; Desire to network and integrate training systems to achieve efficiencies and better prepare for the complexities of conflict in a joint multi-domain environment; Desire of governments and defence forces to increase the use of synthetic environments for training, planning, analysis and decision support; Progression of available digital technology commercially enablers used for training solutions. . Profitability Drivers platform-agnostic Leading training and simulation integrator leveraging solutions across a global footprint; Access to strategic contract vehicles, allowing flexibility to offer solutions to more customers and at the point of need; Adding customers with more complex problem sets and solution demands to include space and cyber domains and the Intelligence community; Partnering with OEMs on next- generation platforms for more effective and efficient program execution; Operational focus on improving contracting, sub-contracting and program delivery processes. quality CAE's Defence and Security segment is positioned to lead the frontier of digital immersion by revolutionizing training and mission operations as the global platform agnostic pure play leader in training and simulation CAE Inc. Proprietary Information and/or Confidential CAE#24Healthcare CAE CAE#25HEALTHCARE CAE Operations are Strategically Located in Key Growth Markets and Well-Positioned to Capitalize on Post COVID-19 Industry Trends 3500+ Simulated clinical experience courseware packages 50+ Adjunct faculty, incl. nurses, physicians, paramedics and sonographers² 80+ Countries with CAE- provided training solutions Key Services & Products offered Reimagining the art and science of simulation ■ Enhanced capabilities, higher fidelity, greater realism Complete portfolio of patient, surgical, and imaging simulators for all healthcare professionals Developing next-generation platforms ■ Holistic and high-tech solutions, including AR/VR Enhancing the experience for healthcare learners, offering more tools to the healthcare instructors Elevating education ◉ Leveraging renowned organizations to build world-class content and curricula Offering a complete array of on-line credited learning for professionals and students Creating customized and targeted offerings ■ OEM and patient training, turnkey simulation centers ■ A diverse offering of customized solutions for OEMs and the military Diversifying and broadening the portfolio TAM: ~$1.7B Including Military & Government, Industry, Academia & Professional ☐ Building on the safety focus with new products ■ Products for both healthcare and aviation 25 CAE Inc. Proprietary Information and/or Confidential CAE#26HEALTHCARE Market drivers Demand Drivers · • Limited access to live patients during training; • Medical and mixed reality technology revolution; · Rising use of simulation, with a demand for innovative and custom training approaches to prevent medical errors; Increased focus on disaster preparedness, alongside chronic shortage of medical professionals, especially nurses; Growing emphasis on patient safety and outcomes. CAE's healthcare segment is positioned as a leader in developing healthcare professionals and promoting safety through technology, educational content and training 26 26 CAE Inc. Proprietary Information and/or Confidential CAE#27Capital Allocation Strategy CAE CAE#28CAPITAL ALLOCATION PRIORITIES Attractive compound growth Incremental Pre-tax Return % on Organic Capital Deployed in Civil Training: 30% 20% 10% 0% 2% 15% 8% (FY17-FY21) 35% 31% 29% 29% 27% 14% 10% 3% 5% 4% 1% FY17 FY18 FY19 FY20 FY21 0% ■FY17 Deployments Total FY18 Deployments Total FY19 Deployments Total FY20 Deployments Total FY21 Deployments Total ** $578M+ organic capital investment from FY17-FY21 to deploy 67+ FFSs* within CAE's Civil commercial and business aviation training network Organic growth capital deployed in Civil over the last five years has increased the base of recurring revenues and has been highly accretive *Non-GAAP and other financial measures **Defined as the operating profit of the FFSs divided by the investment in FFSS* by year of deployment 28 CAE Inc. Proprietary Information and/or Confidential CAE#29CAPITAL ALLOCATION STRATEGY Strong free cash flow generation $600 $500 $400 $300 $200 $100 $0 FY18 FY19 FY20 300% 250% 200% 150% 100% 50% 0% FY21 Free Cash Flow* Net cash provided by operating activities -FCF Conversion Rate* The aim is to target average 100% conversion of net income to free cash flow * Non-GAAP and other financial measures (see Appendix) 29 CAE Inc. Proprietary Information and/or Confidential CAE#30CAPITAL ALLOCATION STRATEGY Maintain solid balance sheet while investing in accretive growth Millions $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2.0B growth capital deployed, including acquisition of Bombardier BAT L3HMT acquisition closure in July 2021 Net Debt to Capital % 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% $0 0.0% FY18** FY19** FY20 FY21 Q3 FY22 Net Debt* Debt Net Debt-to-Capital* Track record of maintaining a solid financial position while deploying accretive growth capital * Non-GAAP and other financial measures (see Appendix) ** 30 Figures have not been restated to reflect the adoption of IFRS 16. CAE Inc. Proprietary Information and/or Confidential CAE#31OVERVIEW Summary Compelling secular growth story with exposure to the anticipated Aero recovery Comprehensive solutions provider to partners in critical industries CAE Poised to capitalize on significant benefits from recent M&A Proven track record of balanced, opportunistic capital deployment Deep industry expertise and commitment to innovation 31 CAE Inc. Proprietary Information and/or Confidential CAE#32Appendix CAE#33SELECT FINANCIAL HIGHLIGHTS FY22 select financial highlights Summary of Financial Highlights (amounts in millions, except per share amounts, ROCE and book-to-sales) Revenue Operating income Adjusted segment operating income (SOI)* Adjusted SOI excluding COVID-19 government support programs* Net income attributable to equity holders of the Company Basic and diluted earnings per share (EPS) Adjusted net income* Adjusted EPS * Adjusted net income excluding COVID-19 government support programs* Adjusted EPS excluding COVID-19 government support programs* Free cash flow* Net cash used in operating activities Capital employed* Non-cash working capital* Net debt* Total debt Return on capital employed (ROCE)* Adjusted ROCE* Total backlog* Order intake* Book-to-sales ratio* Book-to-sales ratio* for the last 12 months Q1 FY22 Q2 FY22 Q3 FY22 FY22 YTD $752.7 $814.9 $848.7 $2,416.3 86.2 39.2 65.5 190.9 98.4 90.7 112.7 301.8 84.8 90.7 112.7 288.2 46.4 14.0 26.2 86.6 0.16 0.04 0.08 0.28 55.6 53.2 60.7 169.5 0.19 0.17 0.19 0.55 45.6 53.2 60.7 159.5 0.15 0.17 0.19 0.51 $(147.6) $19.4 $282.1 $153.9 (129.1) 30.9 309.6 211.4 $4,917.6 $6,500.1 $6,325.0 251.8 318.6 1,669.2 2,481.5 66.8 2,310.5 2,359.7 2,821.9 2,774.0 5.0% 4.9% 4.2% 6.7% 6.6% 6.1% $7,934.1 $8,827.9 $9,177.2 521.5 871.4 1,377.2 0.69x 1.07x 1.62x 0.89x 0.92x 1.12x * Non-GAAP and other financial measures (see Appendix) 33 CAE Inc. Proprietary Information and/or Confidential CAE#34SELECT FINANCIAL HIGHLIGHTS Reconciliation of non-GAAP measures Reconciliation of adjusted segment operating income (amounts in millions) Operating income Restructuring, integration and acquisition costs Adjusted SOI COVID-19 government support programs Adjusted SOI excluding COVID-19 government support programs Reconciliation of adjusted net income and adjusted earnings per share (amounts in millions, except per share amounts) Net income attributable to equity holders of the Company Restructuring, integration and acquisition costs, after tax Adjusted net income COVID-19 government support programs, after tax Adjusted net income excluding COVID-19 government support programs Average number of shares outstanding (diluted) Adjusted EPS Adjusted EPS excluding COVID-19 government support programs 34 =4 Q1 FY22 Q2 FY22 Q3 FY22 FY22 YTD $86.2 $39.2 $65.5 $190.9 12.2 51.5 $98.4 $90.7 47.2 $112.7 110.9 $301.8 13.6 13.6 $84.8 $90.7 $112.7 $288.2 Q1 FY22 Q2 FY22 Q3 FY22 FY22 YTD $46.4 $14.0 $26.2 9.2 39.2 34.5 $55.6 $53.2 $60.7 $86.6 82.9 $169.5 10.0 10.0 $45.6 $53.2 $60.7 $159.5 CAE Inc. Proprietary Information and/or Confidential 295.8 318.7 318.7 311.1 $0.19 $0.17 $0.19 $0.55 $0.15 $0.17 $0.19 $0.51 CAE#35Non-GAAP measure definitions Adjusted earnings or loss per share (EPS) Adjusted earnings or loss per share is a non-GAAP measure calculated by excluding restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or material events, after tax, as well as significant one-time tax items from the diluted earnings per share from continuing operations attributable to equity holders of the Company. The effect per share is obtained by dividing these restructuring, integration and acquisition costs and impairments and other gains and losses, after tax, as well as one-time tax items by the average number of diluted shares. We track it because we believe it provides a better indication of our operating performance on a per share basis and facilitates the comparison across reporting periods. Adjusted earnings or loss per share excluding COVID-19 government support programs further excludes the impacts of government contributions related to COVID-19 support programs that were credited to income, after tax, but does not adjust for COVID-19 heightened operating costs that we have been carrying and that have been included in our results. Adjusted net income or loss Adjusted net income or loss is a non-GAAP measure we use as an alternate view of our operating results. We calculate it by taking our net income attributable to equity holders of the Company from continuing operations and excluding restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or material events, after tax, as well as significant one-time tax items. We track it because we believe it provides a better indication of our operating performance and facilitates the comparison across reporting periods. Adjusted net income or loss excluding COVID-19 government support programs further excludes the impacts of government contributions related to COVID-19 support programs that were credited to income, after tax, but does not adjust for COVID-19 heightened operating costs that we have been carrying and that have been included in our results. Adjusted segment operating income or loss (SOI) Adjusted segment operating income or loss is a non-GAAP measure and is the sum of our key indicators of each segment's financial performance. Adjusted segment operating income or loss gives us an indication of the profitability of each segment because it does not include the impact of any items not specifically related to the segment's performance. We calculate adjusted segment operating income by taking operating income and excluding restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or material events. We track it because we believe it provides a better indication of our operating performance and facilitates the comparison across reporting periods. Additionally, adjusted segment operating income or loss is the profitability measure employed by management for making decisions about allocating resources to segments and assessing segment performance. Adjusted segment operating income or loss excluding COVID-19 government support programs further excludes the impacts of government contributions related to COVID-19 support programs that were credited to income but does not adjust for COVID-19 heightened operating costs that we have been carrying and that have been included in our results. While management is aware of such further adjusted measure, it is not specifically employed by management as a profitability measure for making decisions about allocating resources to segments and assessing segment performance. Capital employed Capital employed Capital employed is a non-GAAP measure we use to evaluate and monitor how much we are investing in our business. We measure it from two perspectives: Capital used: For the Company as a whole, we take total assets (not including cash and cash equivalents), and subtract total liabilities (not including long-term debt and the current portion of long-term debt); For each segment, we take the total assets (not including cash and cash equivalents, tax accounts and other non-operating assets), and subtract total liabilities (not including tax accounts, long-term debt and the current portion of long-term debt, royalty obligations, employee benefit obligations and other non-operating liabilities). Source of capital: In order to understand our source of capital, we add net debt to total equity. For a reconciliation of this non-GAAP measure to the most directly comparable measure under GAAP, refer to section 9.1 "Consolidated capital employed" of the interim MD&A for the period ending December 31, 2021 (as filed on SEDAR (www.sedar.com) on February 11, 2022), as well as section 7.1 "Consolidated capital employed" of the financial report for the years ended March 31, 2018, March 31, 2019, March 31, 2020 and March 31, 2021 (as filed on SEDAR (www.sedar.com) on May 25, 2018, May 17, 2019, May 22, 2020, and May 19, 2021 respectively), which sections are specifically incorporated by reference into this presentation. Return on capital employed (ROCE) ROCE is used to evaluate the profitability of our invested capital. We calculate this ratio over a rolling four-quarter period by taking net income attributable to equity holders of the Company excluding net finance expense, after tax, divided by the average capital employed. 35 CAE Inc. Proprietary Information and/or Confidential CAE#36Non-GAAP measure definitions Free cash flow Free cash flow is a non-GAAP measure that shows us how much cash we have available to invest in growth opportunities, repay debt and meet ongoing financial obligations. We use it as an indicator of our financial strength and liquidity. We calculate it by taking the net cash generated by our continuing operating activities, subtracting maintenance capital expenditures, investment in other assets not related to growth and dividends paid and adding proceeds from the disposal of property, plant and equipment, dividends received from equity accounted investees and proceeds, net of payments, from equity accounted investees. For a reconciliation of this non-GAAP measure to the most directly comparable measure under GAAP, refer to section 8.1 "Consolidated cash movements" of the interim MD&A for the periods ending December 31, 2021 (as filed on SEDAR (www.sedar.com) on February 11, 2022), as well as section 6.1 "Consolidated cash movements" of the financial report for the years ended March 31, 2018, March 31, 2019, March 31, 2020 and March 31, 2021 (as filed on SEDAR (www.sedar.com) on May 25, 2018, May 17, 2019, May 22, 2020, and May 19, 2021 respectively), which sections are specifically incorporated by reference into this presentation. Cash conversion rate Cash conversion rate is a non-GAAP measure we use to assess our performance in cash flow generation and as a basis for evaluating our capitalization structure. We calculate it by dividing free cash flow by adjusted net income or loss Full-flight simulators (FFSS) in CAE's network A FFS is a full-size replica of a specific make, model and series of an aircraft cockpit, including a motion system. In our count of FFSs in the network, we generally only include FFSs that are of the highest fidelity and do not include any fixed based training devices, or other lower-level devices, as these are typically used in addition to FFSs in the same approved training programs. Net debt Net debt is a non-GAAP measure we use to monitor how much debt we have after taking into account cash and cash equivalents. We use it as an indicator of our overall financial position, and calculate it by taking our total long-term debt, including the current portion of long- term debt, and subtracting cash and cash equivalents. Net debt-to-capital is calculated as net debt divided by the sum of total equity plus net debt. For a reconciliation of this non-GAAP measure to the most directly comparable measure under GAAP, refer to section 9.1 "Consolidated capital employed" of the interim MD&A for the periods ending December 31, 2021 (as filed on SEDAR (www.sedar.com) on February 11, 2022), as well as section 7.1 "Consolidated capital employed" of the financial report for the years ended March 31, 2018, March 31, 2019, March 31, 2020 and March 31, 2021 (as filed on SEDAR (www.sedar.com) on May 25, 2018, May 17, 2019, May 22, 2020, and May 19, 2021 respectively), which sections are specifically incorporated by reference into this presentation. Non-cash working capital Non-cash working capital is a non-GAAP measure we use to monitor how much money we have committed in the day-to-day operation of our business. We calculate it by taking current assets (not including cash and cash equivalents and assets held for sale) and subtracting current liabilities (not including the current portion of long-term debt and liabilities held for sale). For a reconciliation of this non-GAAP measure to the most directly comparable measure under GAAP, refer to section 9.1 "Consolidated capital employed" of the interim MD&A for the periods ending December 31, 2022 (as filed on SEDAR (www.sedar.com) on February 11, 2022), as well as section 7.1 "Consolidated capital employed" of the financial report for the year ended March 31, 2021 (as filed on SEDAR (www.sedar.com) on May 19, 2021), which sections are specifically incorporated by reference into this presentation. Operating income or loss Operating income or loss is an additional GAAP measure that shows us how we have performed before the effects of certain financing decisions, tax structures and discontinued operations. We track it because we believe it facilitates the comparison across reporting periods, and with companies and industries that do not have the same capital structure or tax laws. Order intake and Backlog Order intake Order intake is a non-GAAP measure that represents the expected value of orders we have received: For the Civil Aviation Training Solutions segment, we consider an item part of our order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party's obligations to form the basis for a contract. Additionally, expected future revenues from customers under short-term and long-term training contracts are included when these customers commit to pay us training fees, or when we reasonably expect the revenue to be generated; For the Defence and Security segment, we consider an item part of our order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party's obligations to form the basis for a contract. Defence and Security contracts are usually executed over a long-term period but some of them must be renewed each year. For this segment, we only include a contract item in order intake when the customer has authorized the contract item and has received funding for it; For the Healthcare segment, order intake is typically converted into revenue within one year, therefore we assume that order intake is equal to revenue. The book-to-sales ratio is the total orders divided by total revenue in a given period. Backlog Total backlog is a non-GAAP measure that represents expected future revenues and includes obligated backlog, joint venture backlog and unfunded backlog and options: Obligated backlog represents the value of our order intake not yet executed and is calculated by adding the order intake of the current period to the balance of the obligated backlog at the end of the previous fiscal year, subtracting the revenue recognized in the current period and adding or subtracting backlog adjustments. If the amount of an order already recognized in a previous fiscal year is modified, the backlog is revised through adjustments; Joint venture backlog is obligated backlog that represents the expected value of our share of orders that our joint ventures have received but have not yet executed. Joint venture backlog is determined on the same basis as obligated backlog described above; Unfunded backlog represents firm Defence and Security orders we have received but have not yet executed and for which funding authorization has not yet been obtained. Options are included in backlog when there is a high probability of being exercised, but indefinite-delivery/indefinite-quantity (ID/IQ) contracts are excluded. When an option is exercised, it is considered order intake in that period and it is removed from unfunded backlog and options. For a reconciliation of this non-GAAP measure to the most directly comparable measure under GAAP, refer to Section 4.3 "Consolidated orders and total backlog" of the financial report for the years ended March 31, 2019, March 31, 2020 and March 31, 2021 (as filed on SEDAR (www.sedar.com) on May 17, 2019, May 22, 2020, and May 19, 2021, respectively), which sections are specifically incorporated by reference into this presentation. 36 CAE Inc. Proprietary Information and/or Confidential CAE#37Thank you! CAE CAE