Your worldwide

training partner

of choice

CAE Augmented Training Solutions Captain Torbjorn Wischer

CAE Global Leader Training Solutions

World Aviation Training Summit

Orlando, Florida, USA

17-19 April 2018

CAE Inc. Proprietary Information and/or Confidential

5.1 5.4 5.7 6.0 6.4 6.8 7.3

2011 2012 2013 2014 2015 2016 2017

78.1%

79.1% 79.5% 79.7%

80.3% 80.5%

81.4%

2011 2012 2013 2014 2015 2016 2017

TODAY’S COMMERCIAL AIRLINE MARKET IS MORE VIBRANT THAN EVER

2

Average Airline Load Factor 2)

5-yr Average = 79.5% 5-yr CAGR = 5.9%

+7.4%

YOY

Air Traffic (Trillions RPK) 1)

1) Source: CAE based on IATA growth rates

2) and 3) Source: IATA

Passenger growth is forecasted

to grow at 4.1% CAGR in the

coming decade 3)

CAE Inc. Proprietary Information and/or Confidential

DESPITE LAGGING DELIVERIES IN 2017, ORDERS AND BACKLOGS ARE HIGH AND

DEMAND FOR PILOTS CONTINUES TO GROW

3

2.6

3.1

3.3

2.3

1.7

2.5

1.4 1.5

1.6 1.7 1.8 1.7

10.9

12.5

14.2 14.8 14.8

15.3

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2012 2013 2014 2015 2016 2017

Backlog

Deliveries

Orders

Aircraft (thousands)1)

1) Source: Flight Global, filtered for major aircraft types

2017 2027

Active

Pilots Replacements

Additional

pilots

Active

Pilots

105K 290K

440K 150K

10-year airline pilot demand forecast2)

2) Source: CAE Airline Pilot Demand Outlook, June 2017

255K new

pilots needed

by 2027

CAE Inc. Proprietary Information and/or Confidential

THIS RESULTS IN A NUMBER OF CHALLENGES AND OPPORTUNITIES

4

o Maturing pilot population By 2027, over one third of today’s active pilots will retire or exit the workforce

o Accelerated recruitment efforts In the next 10 years, 255k new pilots will be needed by commercial airlines

o Promotion of First Officers During that same time, 150K First Officers will need to be promoted to Captain

o Continued diversity imbalance Female and visible minorities are currently under-represented

o Introduction of new generation aircrafts New technology is adding training and operational complexity to existing fleets

o Adoption of data-based methodologies EBT/AQP/ATQP training methodologies are being implemented by airlines around the world

CAE Inc. Proprietary Information and/or Confidential

INTRODUCING CAE AUGMENTED TRAINING SOLUTIONS

5

Highly capable

people

A consistently

superior customer

experience Integrated training

equipment

Innovations that

improve

performance

1 2

4 3

CAE Inc. Proprietary Information and/or Confidential

1. HIGHLY CAPABLE PEOPLE

6

CAE employs over 2000 instructors

around the world.

To train more than 120,000

pilots each year on initial,

conversion and recurrent

training programs, we hire

and develop instructors to Style

Adaptability excel in three key areas: Style Adaptability, Teaching Skills and Communication Skills.

Communication

Skills

“Uses the right

approaches

and effective

questioning

techniques to

engage

trainees.”

“Connects

with trainees

by meeting

trainees’

particularities”

“Exchanges

information,

feelings, and

meaning

through verbal

and non-verbal

messages”

Teaching

Skills

Quality is integrated into CAE’s infrastructure throughout the instructor lifecycle

CAE Inc. Proprietary Information and/or Confidential

2. INNOVATIONS THAT IMPROVE PERFORMANCE

7

Create lesson

plans and

integrate your

SOPs

Objectively

assess pilot

manoeuvres

using live data

Evolve your

training program

and improve

operational

safety

Identify

proficiency gaps

and adjust your

training

curriculum

Summarize trends

in your

pilot/instructor

pool & across the

industry

1 4 3 2 5

CAE Inc. Proprietary Information and/or Confidential

3. INTEGRATED TRAINING EQUIPMENT

8

Seamless

Training

Progression

Optimized

Life cycle

Operation

Ground School

Training Solutions

Flight Training

Devices

Full Flight

Simulators

CAE Inc. Proprietary Information and/or Confidential

4. A CONSISTENTLY SUPERIOR CUSTOMER EXPERIENCE

9

Book

Check-out

Train

• Training records stored

electronically

• Automatic re-booking

notifications

En

ha

nc

em

en

ts U

nd

erw

ay

Check-in

• Warm customer relationships

• Flexible scheduling

• Online booking request

• New and refurbished classrooms

• UPRT training programs

• EBT/AQP/APQP implementation support

• Quality food and amenities

• New and refurbished reception areas

• Digital check-in capability

CAETerminal CAETerminal

CAE Inc. Proprietary Information and/or Confidential

AUGMENTED TRAINING SOLUTIONS ADVANCES IN THE LAST 12 MONTHS:

10

Highly capable people

A consistently superior customer experience

Integrated training equipment

Innovations that improve performance

1

2

4

3

CAETerminal

CAE Inc. Proprietary Information and/or Confidential 11