CAE Financial and Business Overview

DEFENCE & SECURITY Market drivers 17 • • Demand Drivers Premium on mission readiness driven by global geopolitical tension and instability Higher mix of simulated vs live training due to budget priorities Complex, multi-domain, joint and coalition forces exercises require training in synthetic environments Need for analytics and Al to process large data sets and complex threats Increasing adoption of new and innovative mediums of training + Profitability Drivers Increasing mix of international, including foreign military sales (FMS) Operational focus on improving contracting, sub-contracting and quality Expansion of mission support offering by using advanced analytics and software solutions Operational excellence programs expected to realize significant annual recurring cost savings across whole organization, commencing in fiscal year 2022 and ramping up to a run rate of ~$65 to $70 million company- wide CAE's Defence & Security segment is positioned as the partner of choice in live, virtual and constructive training, and is focused on becoming a global leader in digital immersion CAE Inc. Proprietary Information and/or Confidential CAE

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