Investor Presentation

Non-GAAP measure definitions EBITDA EBITDA comprises earnings before income taxes, finance expense - net, depreciation and amortization. EBITDA margin in D&S is defined as the EBITDA of the Defense and Security segment expressed as a percentage of the Defense and Security revenues. EBITDA of L3Harris Military Training business comprises earnings before income taxes, finance expense – net, depreciation and amortization. Adjusted EBITDA of L3Harris Military Training business is calculated as EBITDA from L3Harris Military Training, after giving effect to the Acquisition and Acquisition related adjustments from sales type leases accounted for under US GAAP and estimated standalone costs. 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 June 30, 2020, September 30, 2020 and December 31, 2020 (as filed on SEDAR (www.sedar.com) on August 12, 2020, November 10, 2020 and February 12, 2021, respectively), 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 June 30, 2020, September 30, 2020 and December 31, 2020 (as filed on SEDAR (www.sedar.com) on August 12, 2020, November 10, 2020 and February 12, 2021, respectively), 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 June 30, 2020, September 30, 2020 and December 31, 2020 (as filed on SEDAR (www.sedar.com) on August 12, 2020, November 10, 2020 and February 12, 2021, respectively), 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. 38 CAE Inc. Proprietary Information and/or Confidential CAE

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