Cae Inc. · TSX:CAE
Cae — Shareholder Meeting (2010)
54 slides from Cae's shareholder meeting presentation, 2010
Slide 1: Growth is in Our Vision
Growth is in Our VISION: of Shareholders 2) 1
Slide 2: Marc Parent, President and CEO
Marc Parent President and Chief Executive Officer 12
Slide 3: FY2010: Good, But Challenging Year
FY2010 Good, But Challenging Year Most profound downturn in history of civil aviation 13
Slide 4: FY2010 Highlights: Resiliency of Business Model
Resiliency of Business Model Proven diversification strategy Improved cost-based FY2010 Market share maintained in Civil Highlights Strong order book and good margins in military Inroads in New Core Markets 14
Slide 5: Alain Raquepas, VP Finance & CFO
Alain Raquepas Vice President, Finance & Chief Financial Officer 15
Slide 6: FY2010 Highlights: Revenue and backlog
Revenue (in millions of $) FY2010 Highlights Revenue Solid backlog of $3 billion 16
Slide 7: Civil Training and Services
FY2010 Highlights Civil Training and Revenue of $433.5 million Services Segment operating income of $75.1 million Margin of 17.3% Orders of expected value of $351 million Utilization: 64% 17
Slide 8: Civil Simulation Products
FY2010 Highlights Civil Simulation Products Revenue of $284 million Segment operating income of $49.4 million Annual average margin of 17.4% 18
Slide 9: Combined Military Segments
FY2010 Highlights Combined Military Segments Orders of $969 million $809 million revenue Segment operating income of $139.6 million Margin of 17.3% 19
Slide 10: FY2010 Highlights: CAPEX, free cash flow, net debt
CAPEX of $130 million $77 million for growth $53 million for maintenance FY2010 Highlights Net debt to capital of 23% Solid Financial Free Cash Flow of $179 million Year Ratio over Net Earnings of 124% 20
Slide 11: Q1 FY2011 Highlights
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Slide 12: Q1 FY2011 Highlights: Revenues and net earnings
Revenues of $367 million Net earnings of $39.4 million Q1 FY2011 15 cents per share Highlights 22
Slide 13: Combined Military Segments
Q1 FY2011 Highlights Combined Military Segments $276 million of orders Revenue of $182 million with 17.5% margin 23
Slide 14: Civil Training and Services
Q1 FY2011 Highlights Civil Training and Services Revenue of $118 million with 18.9% margin Orders of expected value of $81.8 million Increased annual average number of RSEUs to 132 24
Slide 15: Civil Simulation Products
Q1 FY2011 Highlights Civil Simulation Products Revenue of $67 million with 12.3% margin 25
Slide 16: Combined Civil Segments
Q1 FY2011 Highlights Combined Civil Segments Revenue of $185 million with 16.5% margin 26
Slide 17: Q1 FY2011 Highlights: Free cash flow
Free cash flow of ($65.4) million Higher accounts receivable and contracts in progress Q1 FY2011 Highlights Lower accounts payable Lower accrued liabilities Capital expenditures of $22 million 27
Slide 18: FY2010 Conclusion: Good financial health
Good financial health Strong balance sheet FY2010 Conclusion Quality earnings Basis to pursue our growth 28
Slide 19: Marc Parent, President and CEO
Marc Parent President and Chief Executive Officer 29
Slide 20: Stability & Growth Through Business Diversification
Revenue distribution (in %) FY2010 Stability & Growth Through Business Diversification 30
Slide 21: FY2010 Highlights: Defence
Contracts with defence forces of 21 nations $250 million for Chinook helicopter training for Canadian Forces 10, 15 or 20 year contracts providing long-term stability 3rd year with book-to-sales 1.2x or more FY2010 Highlights Defence 31
Slide 22: FY2010 Highlights: Civil
FY2010 Highlights Maintained leadership in difficult Solid Margin and competitive environment Civil 20 full-flight simulators Early Action Mainly in Asia and the Middle East + Maintained >70% share of Customer competed market Satisfaction + Generated solid margins Improved Cost Structure 3
Slide 23: FY2010: Maintained Leadership
CIVIL Generated solid margins Strengthened unique global position MILITARY FY2010 Achieved double-digit growth Maintained Maintained good margins Leadership Continue to see growth prospects New Core Markets Made inroads Healthy financial base 33
Slide 24: Outlook 2011
Growth |S IN | sae Our VISION Cab: — Ye ma ||, “a — <4 3 — o> | a We 4a | | Outlook 2011 ee OTe
Slide 25: Q1 FY2011 Highlights: Civil
Signs of recovery with more demand in combined civil segments Q1 FY2011 Sales of 6 simulators Highlights ATR Civil Bombardier Vietnam Airlines Higher demand for Civil Training and Services 35
Slide 26: Q1 FY2011 Highlights: Defence
Signed contract with many nations Major upgrade on Puma simulator for Q1 FY2011 UK Royal Air Force Highlights Cover entire lifecycle with our total array Defence of product and service solutions Contract with Lockheed Martin for C-130J maintenance technicians 36
Slide 27: New Core Markets: Healthcare and Mining
HEALTHCARE MINING FY2010 Highlights New Core Markets 37
Slide 28: Healthcare: Michener Institute, Université de Montréal
FY2010 Highlights New Core Markets Healthcare Michener Institute, Faculty of Medicine of Toronto Université de Montréal 38
Slide 29: New Core Markets: Mining
FY2010 Highlights New Core Markets Mining 39
Slide 30: Mission Critical + Safety + Efficiency
HEALTHCARE MINING FY2010 Highlights New Core Markets MISSION CRITICAL + SAFETY + EFFICIENCY 40
Slide 31: Looking Forward
Growth |S IN | sae Our vision CAE. | | Looking Forward ee OTe
Slide 32: Civil aerospace market recovery underway
Civil aerospace market recovery underway 2.5x more aircraft orders at Farnborough than in Paris Looking Forward Optimistic About Future Increased demand in Civil Training Products and Services 42
Slide 33: Ready for the Civil Recovery
Looking Forward Ready for the Civil Recovery Combined margins expected in mid-teens Similar performance as last market up-cycle once market fully recovers 43
Slide 34: Solid Growth & Profitability in Defence
Involved with relevant platforms Constrained government spending CAE is part of solution Looking Forward Simulation trains forces at 10% of Solid Growth the cost of real training & Profitability Improve mission readiness in Defence Practice events too dangerous to do in a real aircraft
Slide 35: Expanding Global Reach
Looking Forward Expanding Global Reach 45
Slide 36: Expanding Global Reach: India
Looking Forward Expanding Global Reach Up to 400 civil & military India helicopter pilots per year 46
Slide 37: Expanding Global Reach: Asia pilot demand
Looking Forward 18,000 new Expanding Global Reach pilots / year Asia over the next 20 years globally 47
Slide 38: Strengthening Relationships with OEMs
Looking Forward Strengthening Relationships with OEMs 48
Slide 39: Large Market Potential
Looking Forward Strengthening Large Market Potential our New Core Markets 49
Slide 40: E-learning Solution and Imaging Simulation
Looking Forward Strengthening our New Core Markets E-learning Solution Imaging simulation 50
Slide 41: Surgical Simulation
Looking Forward Strengthening our New Core Markets Surgical simulation 51
Slide 42: Strengthening our New Core Markets
Looking Forward Strengthening our New Core Markets 29 years experience Customers in 70 countries 52
Slide 43: Innovation is our DNA
Innovation is our DNA Continue to invest into R&D every year Ensure our market leadership Looking Forward Investing in Innovation 53
Slide 44: Augmented Engineering Environment
Looking Forward Investing in Innovation Augmented Engineering Environment 54
Slide 45: Augmented Visionics System
Looking Forward Investing in Innovation Augmented Visionics System 55
Slide 46: Volume-based Intelligence, Surveillance and Reconnaissance (VISR)
Looking Forward Investing in Innovation Volume-based Intelligence, Surveillance and Reconnaissance (VISR) 56
Slide 47: Many Growth Avenues
Strengthening CAE’s position and ensure long term sustainable growth Good position to prosper Looking Forward Civil recovery continues Many Growth Defence produces strong results Avenues New Core Markets contribute to growth $0.01 increase in dividend 57
Slide 48: People: Strong Presence
Looking Forward > 7,500 Presence in 23 People countries and Strong customers in 100 countries 58
Slide 49: Involved Locally
Looking Forward Involved Locally 59
Slide 50: Thank you
Looking Forward Thank you: Employees Board Members Shareholders 60
Slide 51: Marc Parent, President and CEO
Marc Parent President and Chief Executive Officer 61
Slide 52: Shareholder Question Period
Shareholder Question Period 62
Slide 53: Termination of Meeting
Growth |S IN | sae Our vision CAE. ee OTe
Slide 54: Growth is in Our Vision
Growth is in Our VISION: of Shareholders 2) 1