CAE : 2022 ANNUAL GENERAL MEETING OF SHAREHOLDERS

CAE'S 2022 ANNUAL GENERAL MEETING OF SHAREHOLDERS

Mr. Marc Parent, President and Chief Executive Officer

Ms. Sonya Branco, Executive Vice President, Finance, and Chief Financial

Officer

ENGLISH VERSION

Wednesday, August 10, 2022

Montreal

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(NEW CAE CORPORATE VIDEO PLAYS)

Moments that matter. It kind of gives you goosebumps, doesn't it? That's what we do at CAE: we prepare you for the moments that matter, whether you're a pilot flying an aircraft and losing your engine at high speed on take-off, whether you're a soldier deployed on a critical mission, or a doctor performing a life-saving procedure for the first time. We prepare you for those moments -- that's our mission.

Good morning, everyone, and welcome to CAE's Annual General Meeting.

This year we celebrate 75 years of industry-firsts, a remarkable journey guided by our noble purpose to make the world a safer place.

CAE has been recognized globally over three-quarters of a century as an innovation leader, and in the last two decades, for expanding its critical role as our customers' partner of choice for simulation products, training services, operations support, and most recently, technology solutions.

The new visual identity and logo that you saw in that video reflect our heritage, our evolution, and our bold vision for the future, which involves us leaning even deeper into technology to revolutionize the way we serve our markets.

Leading foundational technology shifts has long been part of our history. As we enter the next horizon, our investments in technology will allow us to push the frontier of digital immersion in high-tech training and operational support solutions to even higher levels.

Frankly, since I have been the CEO of this great company, I have never been more excited about the future of CAE. We have growth opportunities all around us, amazing technology to invest in, and headroom in our markets.

PAUSE

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(Fiscal 2022)

I am delighted by what we delivered in fiscal year 2022. We seized new opportunities through this period of uncertainty and put CAE in a position of strength, having delivered double-digit growth with higher margins, excellent free cash flow, and record order bookings. We are gaining market share by innovating and focusing on our customers. This is due in large part to our more than 13,000 CAE employees around the globe. They have exemplified our unique culture and delivered outstanding performance. Despite facing challenges at all levels for more than two years since the start of the pandemic, they have consistently demonstrated courage, resilience and a drive to innovate. Together as One CAE, we have adapted our strategy and focus, fundamentally strengthening our organization's future.

Let's now take a look at what we accomplished in our different units.

(Civil aviation)

In Civil Aviation, demand for air travel is increasing significantly, leading to the potential for substantial growth in the future. Full recovery to pre-pandemic levels continues to be primarily driven by the easing of the remaining travel restrictions, which began in North America but is now expanding around the world. We're seeing a steady increase in full-flight simulator orders and we're signing exclusive long-term training agreements with most major airlines in the Americas, the region where travel recovery has been the strongest. We believe this provides a compelling blueprint for what a broader global market recovery could look like for CAE.

Furthermore, we remain very optimistic about the business aviation market in the longer term. Based on this year's robust flight activity and future aircraft delivery schedules, we believe that this business will continue to experience strong growth in the coming years.

While there is still some debate around the pace and shape of the recovery in the commercial market, it is clear that the trend we are observing is upward.

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CAE is well positioned and is gearing up its training network to meet our customers' surging needs arising from the challenges associated with restoring and growing flight capacity in a rapidly recovering market.

At CAE, we've produced and trained more pilots than any other company in the world. That said, pilots are currently in short supply; and more than 320,000 new pilots - including 60,000 for the new Advanced Air Mobility market alone -- will be needed over the next decade.

It is clear that the industry must take concrete action to broaden the talent pool. To that point, women make up only five percent of professional pilots worldwide. Committed to the advancement of women in aviation, and in line with our Diversity, Equity and Inclusion efforts, CAE recently announced the expansion of CAE's Women in Flight scholarship into an ambassador program, building on our reach with airline partners to create a movement that encourages young women to pursue a career as a commercial pilot. To pave the way for future generations of women pilots, these ambassadors will share their stories and experiences with others at events, within their communities, and on social media.

And with our recent acquisition of AirCentre, our digital ecosystem opens up further access to the civil aviation market. This acquisition has expanded CAE's capabilities across a large airline customer base, and allows us to provide software and digital technologies to airlines and business jet operators, helping them run their businesses with greater efficiency and precision, while providing solutions to optimize flight plans, digitize and optimize crew planning, and help manage airport and airline operations. With the resurgence in air travel that we have been seeing this year, airlines will need these services more than ever.

And finally, through our well-honed expertise in building technology to accelerate the development and safe adoption of world-changing innovations, we are increasingly providing end-to-end solutions for the emerging electric vertical take-off and landing market - or eVTOL aircraft, also known as air taxis. This market offers the promise of a new wave of growth and technology development in civil aerospace -- something only seen once in a generation.

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I am confident about our future in civil aviation: we are exceptionally well positioned. As industry leaders, we have the potential for both cyclical and secular growth in this market as recovery occurs.

(Defense & Security)

In Defense and Security, CAE is on a multi-year journey as the world's only pure-play, platform-agnostictraining and simulation provider. We are leveraging our strengths in all five domains -- Air, Land, Sea, Space, and Cyber -- as part of a more integrated and holistic approach to training and simulation for our broad array of defence customers.

CAE's mission has always been to prepare our military customers for safe and successful mission outcomes. We are committed to aligning our defence business with our customers' utmost priorities. As we enter a rapidly-changing future, our customers are adapting their training in the face of near-peer and geopolitical threats. Having to train for multi-domain scenarios means that today's military forces operate more sophisticated, complex, and networked systems than ever before. For CAE, we are proud to support the evolving training needs of our defence forces. In defending freedom, we are fostering social stability around the world.

While we could not have known how or when such geopolitical threats would manifest, they have. Events in Europe this year are a stark reminder that Allied nations must be ready to defend freedom at a moment's notice. We expect the prioritization of defence readiness as a strategic deterrent to translate into additional ways for CAE to support our customers' missions in the years ahead.

Therefore, together with digital ecosystem partners, CAE is developing complex simulation and visualization technologies to create virtual and synthetic environments that combine data and digital technologies to enhance decision- making for governments and businesses in more complex multi-domain battle spaces.

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