10-Year Airline and Business Jet Pilot Demand Outlook slide image

10-Year Airline and Business Jet Pilot Demand Outlook

16 CIVIL AVIATION TRAINING SOLUTIONS Acquisition highlights ✓ Expands CAE's addressable market in Business Aviation Training Acquires an established and growing business for the provision of flight and maintenance training services for operators of one of the world's largest and most valuable in-service business jet fleets Extends OEM Authorized Training Provider (ATP) agreement to 2038 ✓ Enhances CAE's position in largest and fastest growing segment of Business Aviation Training Increases training portfolio focus on medium- and large-cabin business jet market High quality training platforms based on in-production aircraft with superior growth profiles Modern fleet of state-of-the-art full-flight simulators with limited ongoing maintenance investment required ✓ ✓ . Strong strategic and operational fit • Expands CAE's addressable market for business jet instructor-led (wet) training Provides greater leverage across CAE's BAT network Low-risk, plug-&-play integration with operations already co-located within CAE's training premises Financially attractive Accretive to earnings and free cash flow in the first full year of ownership Attractive growth and margin profile Provides additional value from ATP extension and monetization of existing royalty obligations at a discount • Fits capital allocation strategy for a balance of growth and cash returns to shareholders • High cash flow generating business provides flexibility to deleverage balance sheet; continue supporting future growth opportunities; and generate current returns to shareholders Maintains CAE's investment grade profile with proforma leverage ratio remaining within target leverage range CAE Inc. Proprietary Information and/or Confidential LASSROOMS 5-27 CAE + BOMBARDIER CAE
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