Cae Inc. · TSX:CAE
Cae — Shareholder Meeting (2009)
63 slides from Cae's shareholder meeting presentation, 2009
Slide 1: 2009 Annual and Special Meeting of Shareholders
_——w CAE 2009 Annual and Special Meeting of Shareholders Diversified. Balanced. Strong.
Slide 2: Lynton R. Wilson, Chairman of the Board
Lynton R. Wilson Chairman of the Board
Slide 3: Doing the right thing
“Doing “ CAE is testament to his vision and leadership and his the right thing” remarkable ability to engage employees in the pursuit of strategic diversification ”
Slide 4: Doing the right thing
CAE Diversified. Balanced. Strong. “Doing the right thing” eon or — manne
Slide 5: Strengthen the balance sheet
Strengthen the balance sheet • Finalizing sale of our Marine Controls division “Doing ¾ Provided greater flexibility to fund the growth of other the right businesses thing” Reporting 4 segments
Slide 6: Mobilization of employees around the world
Mobilization of employees around the word Adoption of Kaizen and Six Sigma techniques “Doing the right Initiation of customer advisory boards thing”
Slide 7: Investments of $1.6 billion in R&D
Investments of $1.6 billion in R&D
Slide 8: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 9: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 10: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 11: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 12: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management Civil Training
Slide 13: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 14: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 15: Legacy of Leadership and Sound Management
World’s largest Legacy of commercial Leadership aviation training company and Sound Management Second largest in business aviation training
Slide 16: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 17: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management > 30 National Defence Forces
Slide 18: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 19: Legacy of Leadership and Sound Management
Legacy of Leadership and Sound Management
Slide 20: Robert Brown's Watch
CAE stands as a Canadian global leader Robert and a symbol of our collective pride Brown’s Watch Met or exceeded expectations of all stakeholders Company is • A better, sounder organisation • Progressed steadily • Well positioned for the future
Slide 21: Thank You for an Exceptional Contribution
Thank You for an Exceptional Contribution
Slide 22: Robert E. Brown, President and CEO
Robert E. Brown President and CEO
Slide 23: Strong Performance, Diversification and Strict Financial Discipline
Strong Performance Diversification and strict Financial discipline
Slide 24: Strong Growth Record
Strong Growth Record backlog of over $3 billion
Slide 25: Strong Military Orders
Strong Military First time Orders Military orders reached $1.09 billion Strong geographic diversification
Slide 26: Strong Military Geographic Diversification: Canada
Strong Military Geographic Diversificatio n C-130J aircrew training program Canada Canada supporting the Canadian industry with key contracts to Canadian companies who can then leverage their expertise and obtain new contracts with other nations
Slide 27: Strong Military Geographic Diversification: Canada
Sole qualifier for training services related to purchase Strong of Chinooks by Canada Military Geographic Diversificatio n Canada
Slide 28: Strong Military Geographic Diversification: U.S. Military
Strong Military Geographic Diversificatio n U.S. military forces
Slide 29: Strong Military Geographic Diversification: Europe and Asia-Pacific
In Europe • Won several contracts Strong under the NH90 program Military • Continue to train pilots Geographic from NATO at our U.K. training centre Diversificatio • Engaged several initiatives n with the German Ministry of Europe Defence Singapore In Singapore, India India and Australia Austral
Slide 30: Strong Civil Business: Simulation Products
Strong Civil Business Simulation Products FY2009 34 full-flight simulators
Slide 31: Strong Civil Business: Training and Services
Strong Civil Business Training and Services Signed agreements with expected value of $464M Average annual revenue of $3.9M/simulator
Slide 32: Strong FY2009 Results
Strong FY2009 results
Slide 33: Thank You!
Thank You ! Employees Management CAE Board CAE USA Board Shareholders
Slide 34: Alain Raquepas, Vice President, Finance and CFO
Alain Raquepas Vice President, Finance and CFO
Slide 35: Highlights of Fiscal 2009
Highlights Continued to of fiscal make good 2009 progress on all fronts 35
Slide 36: FY2009 Annual Revenues
Contribution of all four FY2009 business segments Annual Revenues 36
Slide 37: Strong Military Segments
Record orders of $1.09 billion Strong • contributing to our consolidated backlog valued at Military $3.2 billion Segments
Slide 38: FY2009 EBIT
FY2009 EBIT FY2009 EBIT 18.3% of consolidated revenues 38
Slide 39: FY2009 Earnings Per Share from Continuing Operations
FY2009 Earnings Per Share from Continuing Operations 39
Slide 40: FY2009 Free Cash Flow
FY2009 Free cash flow $106 million Free Cash • Net cash from our operations $196 million Flow • Capital Expenditures $204 million 40
Slide 41: FY2009 CAE & Partners
Operating more than 140 Full Flight Simulators FY2009 around the world CAE & Partners
Slide 42: FY2009 Capital Employed
FY2009 Capital Employed $1.5 billion Capital • Return on Capital 15.8% Employed 42
Slide 43: Q1 2010 Highlights
_——w CAE 2009 Annual and Special Meeting of Shareholders “A ‘ Diversified. Balanced. Strong. Q1 2010 Highlights -
Slide 44: Q1 2010 Consolidated Revenue
Revenues $383 million Q1 2010 Net earnings $27.2 million Consolidated • Earnings Per Share $0.11 Revenue Net Earnings $46.1 million (June 30th) (Excluding the restructuring charge) • Earnings Per Share $0.18 Our diversification has played a key role in our positive results
Slide 45: Q1 2010 Combined Military Segments
$194 million of orders • Including C-130J simulator for U.S. Air Force Special Operations Q1 2010 • Upgrades to the Seahawk helicopter trainers for U.S. Navy Combined $185 million in revenues Military • Margins above 18% in both segments Segments
Slide 46: Q1 2010 Civil Training and Services
$59 million of orders Q1 2010 Increased annual Civil average number Training of RSEUs to 130 and Services Slowdown in North America and Europe Stable demand in ROW $115 million in revenues • +4% over Q1 2009
Slide 47: Q1 2010 Civil Simulation Products
Q1 2010 Civil Simulation Products Sale of 6 simulators in the quarter • Including 2 for Bombardier’s new C-Series $83 million in revenues • 20.1% of margin
Slide 48: Q1 2010 Capital Expenditures
Q1 2010 Capital Capital expenditures $32 million Expenditures Private placement $130 million
Slide 49: Q1 2010 Summary
Q1 2010 Good 1st Quarter Summary New challenges ahead CAE is well positioned to continue creating shareholder value
Slide 50: Marc Parent, EVP and COO
_——w CAE 2009 Annual and Special Meeting of Shareholders “A ‘ Diversified. Balanced. Strong. Marc Parent EVP and COO
Slide 51: Thank You: Board of Directors
Board of Directors Thank You Robert Brown for his mentorship and counsel • Under his leadership, company has ¾ Solid financial base ¾ Good diversification ¾ Good position to meet present and future challenges
Slide 52: Marc Parent
Career in aerospace industry Marc Parent Last five years at CAE Privilege to be named CEO My utmost to meet expectations • Board • Employees • Shareholders
Slide 53: Great Company
Quality – Innovation – Customer Focus Great Company
Slide 54: Dedicated Employees
_——w CAE Diversified. Balanced. Strong. Dedicated Employees
Slide 55: Customers
Quality of our products Customers Satisfaction toward our employees
Slide 56: New CEO
Big challenge and great responsibility New CEO But we have • Employees • Management team • Excellent products and services To create value for our stakeholders
Slide 57: Looking Ahead
Challenging aerospace market • Well equipped to manage situation Looking Our diversification and worldwide presence will Ahead allow us to weather the storm Same discipline and orientation in terms of risks and opportunities • Strong balance sheet provides the stamina to manage uncertainty • I
Slide 58: Thank You: Robert Brown
Robert Brown Thank You Board of Directors
Slide 59: Marc Parent, EVP and COO
_——w CAE 2009 Annual and Special Meeting of Shareholders “A ‘ Diversified. Balanced. Strong. Marc Parent EVP and COO
Slide 60: Shareholder Question Period
Shareholder Question Period
Slide 61: Results of Ballots
_——w CAE 2009 Annual and Special Meeting of Shareholders “A ‘ Diversified. Balanced. Strong. Results of Ballots
Slide 62: Termination of Meeting
_——w CAE 2009 Annual and Special Meeting of Shareholders | Diversified. Balanced. Strong. Termination of Meeting
Slide 63: CAE
_——w CAE 2009 Annual and Special Meeting of Shareholders Diversified. Balanced. Strong.