CAE stories first quarter fiscal 2025 effects

• Earnings of $1,072.5 million vs. $1,012.0 million in prior 12 months
• Income according to proportion (EPS) from proceeding operations of $0.15 vs. $0.20 in prior 12 months
• Adjusted EPS⁽¹⁾ of $0.21 vs. $0.24 in prior 12 months
• Running source of revenue of $108.6 million vs. $128.3 million in prior 12 months
• Adjusted branch running source of revenue⁽¹⁾ of $134.2 million vs. $143.3 million in prior 12 months
• Adjusted form consumption⁽¹⁾ of $1,192.0 million for a $17.0 billion adjusted backlog⁽¹⁾
• Internet debt-to-adjusted EBITDA⁽¹⁾ of three.41x (3.11x aside from Legacy Words⁽¹⁾⁽²⁾) vs. 3.17x (2.89x aside from Legacy Words) on the finish of the previous quarter
• 463,500 habitual stocks repurchased at a weighted moderate payment of $25.21 and prevented underneath NCIB
• Comparative figures had been reclassified to mirror discontinued operations

MONTREAL, Aug. 13, 2024 /PRNewswire/ – (NYSE: CAE) (TSX: CAE) – CAE Inc. (CAE or the Corporate) these days reported its economic effects for the fiscal first quarter ended June 30, 2024. The Corporate additionally supplied an replace on its walk to streamline its group and operations by way of leveraging alternatives to toughen synergies between trade gadgets and force efficiencies. In response to those tasks and exterior marketplace traits, control has additionally made incremental adjustments to its full-year outlook.

“Last quarter we took the necessary steps to provide a clear path to margin improvement in our Defense business, and I am pleased with the progress we have made since then to deliver on our commitments,” mentioned Marc Mum or dad, CAE’s President and Leading Govt Officer. “We have also continued to seize on opportunities to streamline CAE to further enhance our execution and operational efficiency. The secular growth backdrop remains compelling in both civil aviation and defence markets, and despite the short-term impact of the current supply chain headwinds on the airline industry, our nearly $1.2 billion in consolidated adjusted order intake and record $17.0 billion adjusted backlog this quarter continue to point to a particularly bright future for CAE.”

Value optimization and reorganization

Underneath its just lately appointed Leading Running Officer (COO), Nick Leontidis, CAE has recognized alternative alternatives to additional streamline its group, take away duplication, and optimize its price construction. The company point COO position now has purview over all 5 of CAE’s categories, which enabled the elimination of control layers in each Civil and Protection companies and the additional streamlining of help purposes, engineering products and services, and footprint to force alternative synergies around the endeavor. The Corporate expects to incur roughly $20 million of alternative restructuring bills in the second one quarter and expects to completely achieve related annual run-rate price financial savings of roughly $20 million by way of the tip of the nearest fiscal 12 months.

Consolidated effects

First quarter fiscal 2025 income was once $1,072.5 million, when compared with $1,012.0 million within the first quarter latter 12 months. First quarter EPS from proceeding operations was once $0.15 in comparison to $0.20 latter 12 months. Adjusted EPS within the first quarter was once $0.21 in comparison to $0.24 latter 12 months.

Running source of revenue this quarter was once $108.6 million (10.1% of income⁽¹⁾), in comparison to $128.3 million (12.7% of income) latter 12 months. First quarter adjusted branch running source of revenue was once $134.2 million (12.5% of income⁽¹⁾) in comparison to $143.3 million (14.2% of income) latter 12 months. All economic data is in Canadian bucks and effects are introduced on a unbroken operations foundation, except in a different way indicated.

Abstract of consolidated effects

Civil Flying (Civil)

First quarter Civil income was once $587.6 million vs. $540.3 million within the first quarter latter 12 months. Running source of revenue was once $89.8 million (15.3% of income) in comparison to $105.6 million (19.5% of income) in the similar quarter latter 12 months. Adjusted branch running source of revenue was once $106.4 million (18.1% of income) in comparison to $119.0 million (22.0% of income) within the first quarter latter 12 months. Civil adjusted branch running source of revenue and margins have been cheapen this quarter, basically because of the next point of Device as a Provider (SaaS) conversions in Gliding Operations Answers and incrementally cheapen usage in industrial flying coaching. All the way through the quarter, Civil delivered 8 full-flight simulators (FFSs) to shoppers and primary quarter Civil coaching centre usage was once 76%.

All the way through the quarter, Civil signed coaching answers words valued at $770.5 million, together with a field of long-term industrial and trade flying coaching word of honour, virtual aviation products and services words, and 11 FFS gross sales.

The Civil book-to-sales ratio⁽¹⁾ was once a powerful 1.31 occasions for the quarter and 1.23 occasions for the latter three hundred and sixty five days. The Civil adjusted backlog on the finish of the quarter was once a file $6.6 billion.

Abstract of Civil Flying effects

Protection and Safety (Protection)

First quarter Protection income was once $484.9 million vs. $471.7 million within the first quarter latter 12 months. Running source of revenue was once $18.8 million (3.9% of income) in comparison to $22.7 million (4.8% of income) in the similar quarter latter 12 months. Adjusted branch running source of revenue was once $27.8 million (5.7% of income), in comparison to $24.3 million (5.2% of income) within the first quarter latter 12 months.

Protection booked orders for $421.5 million this quarter for a book-to-sales ratio of 0.87 occasions. The ratio for the latter three hundred and sixty five days was once 1.13 occasions. The Protection adjusted backlog, together with unfunded commitment awards and CAE’s hobby in joint ventures, on the finish of the quarter was once $10.4 billion, up from $5.7 billion on the finish of the fourth quarter of fiscal 2024. This comprises CAE’s 50% proportion of the $11.2 billion, 25-year commitment for Canada’s Era Aircrew Coaching Program that was once awarded to the CAE SkyAlyne three way partnership. The Protection pipeline left-overs robust with some $10.0 billion of bids and recommendations pending.

Abstract of Protection and Safety effects

Supplementary economic highlights

CAE incurred $10.8 million of prices connected to the combination of AirCentre, which is predicted to be finished in the second one quarter of fiscal 2025, and $14.8 million in reference to its restructuring program to streamline CAE’s running style and portfolio, optimize its price construction and develop efficiencies. Given alternative alternatives for price optimization and the streamlining of CAE’s organizational construction underneath its untouched COO, CAE expects to incur roughly $20 million of alternative restructuring prices in the second one quarter of fiscal 2025. This basically comes to the elimination of control layers, together with Team President positions in Civil and Protection and the consolidation of a number of shared products and services teams around the group. CAE expects to completely reach annual run price price financial savings of roughly $20 million by way of the tip of the nearest fiscal 12 months.  

Internet finance expense this quarter amounted to $49.5 million, in comparison to $52.4 million within the previous quarter and $53.1 million within the first quarter latter 12 months.

Source of revenue tax expense this quarter amounted to $8.3 million, representing an efficient tax price of 14%, in comparison to 11% for the primary quarter latter 12 months. The adjusted efficient tax price⁽¹⁾, which is the source of revenue tax price old to resolve adjusted internet source of revenue and altered EPS, was once 17% this quarter as in comparison to 13% within the first quarter of latter 12 months. The rise within the adjusted efficient tax price was once basically as a consequence of an source of revenue tax receive advantages because of a tax courtroom resolution latter 12 months, in part offset by way of the trade within the mixture of source of revenue from numerous jurisdictions.

Internet coins old in running actions was once $12.9 million for the quarter, in comparison to $49.3 million within the first quarter latter 12 months. Distant coins stream⁽¹⁾ was once detrimental $25.3 million for the quarter in comparison to detrimental $110.3 million within the first quarter latter 12 months. The rise was once basically because of upper internet coins from running actions and cheapen upkeep capital expenditures.

Enlargement and upkeep capital expenditures⁽¹⁾ totaled $92.6 million this quarter.

Internet debt⁽¹⁾ on the finish of the quarter was once $3,129.7 million for a internet debt-to-adjusted EBITDA⁽¹⁾ of three.41 occasions (3.11 occasions aside from Legacy Words⁽¹⁾⁽²⁾). This compares to internet debt of $2,914.2 million and a internet debt-to-adjusted EBITDA of three.17 occasions (2.89 occasions aside from Legacy Words) on the finish of the previous quarter.

Adjusted go back on capital hired⁽¹⁾ was once 5.7% this quarter in comparison to 5.9% latter quarter and six.7% within the first quarter latter 12 months.

All the way through the quarter, CAE repurchased and prevented a complete of 463,500 habitual stocks underneath its customary route issuer bid (NCIB), which started on Would possibly 30, 2024, at a weighted moderate payment of $25.21 according to habitual proportion, for a complete attention of $11.7 million. 

Sustainability

This quarter, CAE unveiled its FY24 World Annual Task and Sustainability File. This complete record emphasizes CAE’s integration of environmental, social, and financial elements in its trade style and decision-making procedure to succeed in long-term luck and develop long-term worth for each its stakeholders and nation at massive. This file marks additional walk of its 5-year ESG strategic roadmap. Testimony to CAE’s tradition of upholding the most efficient transparency requirements, the file has been additional enhanced for higher transparency. In preparation for compliance with necessary extra-financial reporting laws, CAE carried out an exterior readiness evaluation for explicit KPIs; findings shall be integrated in our steady growth procedure over the non permanent.

The file showcases CAE’s ongoing progress against environmental stewardship, social duty, and the adoption of sustainable trade practices, together with, CAE’s lively loyalty as a transformation agent inside the Aerospace and Protection business to encourage our friends and companions to release motion and boost up walk on decarbonization. With its providers, CAE fostered higher collaboration round decarbonization together with its untouched CAE Resilient In combination program. In consequence, CAE’s provider engagement with Ecovadis is the very best amongst its Global Aerospace Environmental Team (IAEG) friends. CAE has additionally submitted its near-term science-based goals to the Science Based totally Goals initiative (SBTi) for validation, a year-long procedure that required the alignment of all of the group. CAE additionally attained the ‘Dedicated’ condition in Determined Aboriginal Members of the family certification for the primary date, a primary important milestone in its progress towards reconciliation.

For more info on CAE’s sustainability roadmap and achievements, the file may also be downloaded at https://www.cae.com/sustainability/.

Control outlook

Civil
The secular call for image for flying coaching answers left-overs compelling and the Corporate is still neatly located. Control is now focused on roughly 10 % Civil annual adjusted branch running source of revenue expansion for the fiscal 12 months with efficiency anticipated to be extra closely weighted to the second one part. Annual Civil adjusted branch running source of revenue margin is now anticipated to be within the field of twenty-two to 23 %, with enough room to develop past the up-to-date 12 months on quantity, efficiencies and blend. The Civil outlook considers the identified headwinds which have been affecting a portion of its industrial flying coaching subsegment, which might be triggered by way of OEM airplane provide chain constraints and the new movements by way of some airways to briefly drop pilot hiring. Underlying its outlook, CAE has taken tasks to force alternative operational price efficiencies which can be anticipated to partly mitigate the results of incrementally cheapen preliminary coaching call for within the non permanent. The Corporate may be assuming some easing of business airplane provide constraints and that pilot hiring will start to resume in the second one part of its fiscal 12 months, which is in step with up-to-date coaching bookings for the duration. Additionally, it expects a endured robust efficiency in trade flying coaching, upper profitability in Gliding Operations Answers, and better quantity and profitability from full-flight simulator (FFS) deliveries. Control’s Civil outlook additionally considers the continuing ramp up of more moderen coaching centres and just lately deployed full-flight simulators, in part offset by way of the extra extensive SaaS conversions underway in its Gliding Operations Answers utility trade.

Protection
Having re-baselined the Protection trade and considerably accounted for the in the past recognized programmatic possibility, control expects Protection annual income expansion within the low- to mid-single-digit proportion field and annual Protection adjusted branch running source of revenue margin to extend to the 6- to 7-percent field in fiscal 2025, additionally with room to develop past the up-to-date 12 months. In a similar way, control expects annual Protection efficiency to be extra closely weighted to the second one part. Control additionally expects important Protection adjusted backlog expansion within the fiscal 12 months with the addition of massive multiyear methods lately in negotiations.

The Corporate continues to focus on three-year EPS expansion (FY22-25) within the low- to mid-teens-percentage field.

Finance expense and tax expense
Control expects annual finance expense to be homogeneous to fiscal 2024 on cheapen hobby expense on debt, offset by way of upper hire expense in help of latest coaching centre expansions to its world coaching community in help of expansion. The run-rate efficient source of revenue tax price is predicted to be roughly 25%, taking into account the source of revenue anticipated from numerous jurisdictions and the implementation of worldwide minimal tax insurance policies.

Balanced capital allocation priorities, accretive expansion investments
As a mirrored image of its agile and disciplined solution to capital funding, CAE has diminished its overall CAPEX outlook in fiscal 2025 to the low finish of its in the past indicated field of $50 to $100 million upper than fiscal 2024, which totaled $329.8 million. Commensurate with CAE’s ongoing luck to seize marketplace alternatives in coaching, roughly three-quarters of this pertains to natural expansion investments in simulator capability to be deployed to CAE’s world community of aviation-related coaching centres and sponsored by way of multiyear buyer words.  

Cast economic place
A guiding principle of CAE’s capital control priorities comprises the upkeep of a forged economic place, and it expects to proceed to strengthen its steadiness sheet via ongoing deleveraging, commensurate with its funding grade profile.

Flow returns to shareholders
Given CAE’s walk over the latter 12 months to support its economic place, an NCIB was once established as a part of its capital control technique and is lately supposed to be old opportunistically over date with abundance distant coins stream. Given the Corporate’s outlook and coins generative nature of its extremely habitual trade, CAE’s Board of Administrators may also proceed to judge the potential for reintroducing a shareholder dividend.

Warning regarding outlook
Control’s outlook for fiscal 2025 and the above goals and expectancies represent forward-looking statements inside the that means of acceptable securities rules, and are in keeping with a lot of suppositions, together with on the subject of customery marketplace situations, macroeconomic and geopolitical elements, provide chains and exertions markets. Expectancies also are matter to a lot of dangers and uncertainties and in keeping with suppositions about buyer receptivity to CAE’s coaching answers and operational help answers in addition to subject matter suppositions contained on this press let go, quarterly Control’s Dialogue and Research (MD&A) and in CAE’s fiscal 2024 MD&A, all to be had on our site (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Refer to the categories underneath entitled: “Caution concerning forward-looking statements”, “Material assumptions” and “Material risks”.

Evocative data

Readers are strongly recommended to view a extra realistic to life dialogue of our effects by way of branch within the MD&A and CAE’s consolidated economic statements for the quarter ended June 30, 2024, which might be to be had on our site (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Holders of CAE’s securities might also request a broadcast album of the Corporate’s consolidated economic statements and MD&A distant of fee by way of contacting Investor Members of the family ([email protected]).

Convention name Q1 FY2025    

Marc Mum or dad, CAE President and CEO; Sonya Branco, Govt Vice President, Finance, and CFO; and Andrew Arnovitz, Senior Vice President, Investor Members of the family and Endeavor Chance Control, will habits an income convention name the next day at 8:00 a.m. ET. The decision is meant for analysts, institutional traders and the media. Members can concentrate to the convention by way of dialing + 1-844-763-8274 or +1-647-484-8814. The convention name can be audio webcast reside at www.cae.com.

About CAE

At CAE, we equip family in important roles with the experience and answers to develop a more secure global. As a era corporate, we digitalize the bodily global, deploying software-based simulation coaching and demanding operations help answers. Above all else, we empower pilots, cabin group, upkeep technicians, airways, trade flying operators and defence and safety forces to accomplish at their absolute best each and every year and when the stakes are the very best. Around the world, we’re far and wide shoppers want us to be with roughly 13,000 staff in additional than 240 websites and coaching places in over 40 international locations. CAE represents greater than 75 years of business firsts–the highest-fidelity aviation and undertaking simulators in addition to coaching methods powered by way of virtual applied sciences. We embed sustainability in the whole thing we do. Lately and the next day, we’ll form positive our shoppers are in a position for the moments that topic.

Warning regarding boundaries of abstract income press let go

This abstract income press let go comprises restricted data intended to lend a hand the reader in assessing CAE’s efficiency, however it’s not an acceptable supply of data for readers who’re unfamiliar with CAE and isn’t whatsoever an alternative choice to the Corporate’s economic statements, notes to the economic statements, and MD&A stories. 

Warning regarding forward-looking statements

This press let go comprises forward-looking statements about our actions, occasions and traits that we predict to or look ahead to might happen going forward together with, for instance, statements about our optical, methods, marketplace traits and outlook, life revenues, income, coins stream expansion, benefit traits, expansion capital spending, expansions and untouched tasks, together with tasks that pertain to environmental, social and governance (ESG) issues, economic tasks, to be had liquidities, anticipated gross sales, common financial and political outlook, inflation traits, potentialities and traits of an business, anticipated annual habitual price financial savings from operational excellence methods, our control of the provision chain, estimated addressable markets, calls for for CAE’s services, our get admission to to capital assets, our economic place, the predicted accretion in numerous economic metrics, the predicted capital returns to shareholders, our trade outlook, trade alternatives, goals, construction, plans, expansion methods and alternative strategic priorities, and our aggressive and management place in our markets, the growth of our marketplace stocks, CAE’s talent and preparedness to answer call for for untouched applied sciences, the sustainability of our operations, our talent to vacate the Legacy Words as anticipated and to lead and mitigate the dangers related therewith, the affect of the leaving of the Legacy Words, and alternative statements that aren’t ancient information.

Since forward-looking statements and data relate to life occasions or life efficiency and mirror up-to-date expectancies or ideals referring to life occasions, they’re most often recognized by way of phrases similar to “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “likely”, “may”, “plan”, “seek”, “should”, “will”, “strategy”, “future” or the detrimental thereof or alternative permutations thereon suggesting life results or statements referring to an outlook. All such statements represent “forward-looking statements” inside the that means of acceptable Canadian securities regulation and “forward-looking statements” inside the that means of the “safe harbor” provisions of the US Personal Securities Litigation Reform Operate of 1995.

By way of their nature, forward-looking statements require us to form suppositions and are matter to inherent dangers and uncertainties related to our trade which might motive fresh leads to life sessions to range materially from effects indicated in forward-looking statements. Era those statements are in keeping with control’s expectancies and suppositions referring to ancient traits, up-to-date situations and anticipated life traits, in addition to alternative elements that we consider are cheap and suitable within the instances, readers are cautioned to not playground undue reliance on those forward-looking statements as there’s a possibility that they is probably not correct. The forward-looking statements contained on this press let go describe our expectancies as of August 13, 2024 and, accordingly, are matter to modify then such presen. Except for as required by way of legislation, we disown any goal or legal responsibility to replace or revise any forward-looking statements whether or not because of untouched data, life occasions or in a different way. The forward-looking data and statements contained on this press let go are expressly certified by way of this cautionary observation. As well as, statements that “we believe” and homogeneous statements mirror our ideals and evaluations at the related matter. Those statements are in keeping with data to be had to us as of the presen of this press let go. Era we consider that data supplies a cheap foundation for those statements, that data is also restricted or incomplete. Our statements must no longer be learn to suggest that we’ve got carried out an exhaustive inquiry into, or assessment of, all related data. Those statements are inherently unsure, and traders are cautioned to not unduly depend on those statements. Except for as in a different way indicated by way of CAE, forward-looking statements don’t mirror the prospective affect of any particular pieces or of any tendencies, monetizations, mergers, acquisitions, alternative trade combos or alternative transactions that can happen then August 13, 2024. The economic affect of those transactions and particular pieces may also be advanced and will depend on the information specific to every of them. We subsequently can not describe the predicted affect in a significant approach or in the similar approach we provide identified dangers affecting our trade. Ahead-looking statements are introduced on this press let go to effect aiding traders and others in figuring out positive key components of our anticipated fiscal 2025 economic effects and in acquiring a greater figuring out of our expected running shape. Readers are cautioned that such data is probably not suitable for alternative functions.

Subject material suppositions

The forward-looking statements put forth on this press let go are in keeping with positive suppositions together with, with out limitation: the customery marketplace situations, geopolitical instability, the client receptivity to our coaching and operational help answers, the accuracy of our estimates of addressable markets and marketplace alternative, the belief of expected annual habitual price financial savings and alternative supposed advantages from restructuring tasks and operational excellence methods, the facility to answer expected inflationary pressures and our talent to cross alongside emerging prices via larger costs, the fresh affect to provide, manufacturing ranges, and prices from world provide chain logistics demanding situations, the steadiness of foreign currency echange charges, the facility to hedge exposures to fluctuations in rates of interest and foreign currency echange charges, the supply of borrowings to be drawn indisposed underneath, and the usage, of a number of of our senior credit score word of honour, our to be had liquidity from coins and coins equivalents, undrawn quantities on our revolving credit score facility, the steadiness to be had underneath our receivable acquire facility, the supposition that our coins flows from operations and endured get admission to to debt investment shall be enough to satisfy economic necessities within the foreseeable life, get admission to to anticipated capital assets inside of expected timeframes, deny subject matter economic, operational or aggressive repercussions from adjustments in laws affecting our trade, our talent to store and draw in untouched trade, our talent to successfully explode and vacate the Legacy Words past managing the dangers related therewith, and our talent to shield our place within the contractual dispute solution procedure with the patron of the CAE Healthcare trade. Wind proceed is a significant driving force for CAE’s trade and control is dependent upon research from the Global Wind Delivery Affiliation (IATA) to tell its suppositions in regards to the price and profile of healing in its key civil flying marketplace. Accordingly, the suppositions defined on this press let go and, in consequence, the ahead‑shopping statements in keeping with such suppositions, might turn into erroneous.

Subject material dangers

Remarkable dangers that would motive fresh effects or occasions to range materially from the ones expressed in or implied by way of our forward-looking statements are put forth in CAE’s MD&A for the fiscal 12 months ended March 31, 2024 and MD&A for the 3 months ended June 30, 2024, to be had on our site (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Readers are cautioned that any of the disclosed dangers may have a subject matter adversarial impact on our forward-looking statements. We warning that the disclosed checklist of possibility elements isn’t exhaustive and alternative elements may additionally adversely impact our effects.

Non-IFRS and alternative economic measures

This press let go comprises non-IFRS economic measures, non-IFRS ratios, capital control measures and extra economic measures. Those measures aren’t standardized economic measures prescribed underneath IFRS and subsequently must no longer be at a loss for words with, or old as an spare for, efficiency measures calculated in step with IFRS. Moreover, those measures must no longer be when compared with in a similar fashion titled measures supplied or old by way of alternative issuers. Control believes that those measures grant alternative perception into our running efficiency and traits and facilitate comparisons throughout reporting sessions.

Sure non-IFRS and alternative economic measures are supplied on a consolidated foundation and one at a time for every of our sections (Civil Flying and Protection and Safety) since we analyze their effects and function one at a time.

Reconciliations and calculations of non-IFRS measures to essentially the most immediately related measures underneath IFRS also are i’m ready forth underneath within the category Reconciliations and Calculations of this press let go. 

Efficiency measures

Running source of revenue margin (or running source of revenue as a % of income)
Running source of revenue margin is a extra economic measure calculated by way of dividing our running source of revenue by way of income for a given duration. We observe it as a result of we consider it supplies an enhanced figuring out of our running efficiency and facilitates the comparability throughout reporting sessions.

Adjusted branch running source of revenue or loss
Adjusted branch running source of revenue or loss is a non-IFRS economic measure that provides us a sign of the profitability of every branch as it does no longer come with the affect of any pieces no longer particularly connected to the branch’s efficiency. We calculate adjusted branch running source of revenue by way of taking running source of revenue and adjusting for restructuring, integration and acquisition prices, and impairments and alternative positive aspects and losses coming up from important strategic transactions or explicit occasions. Impairments and alternative positive aspects and losses coming up from important strategic transactions or explicit occasions include the impairment of approbation (as described in Notice 14 of our consolidated economic statements for the 12 months ended March 31, 2024), the impairment of era and alternative non-financial property (as described in Notice 5 of our consolidated economic statements for the 12 months ended March 31, 2024) and the impairment reversal of non-financial property following their repurposing and optimization (as described in Notice 5 of our consolidated economic statements for the 12 months ended March 31, 2023). We observe adjusted branch running source of revenue as a result of we consider it supplies an enhanced figuring out of our running efficiency and facilitates the comparability throughout reporting sessions. Adjusted branch running source of revenue on a consolidated foundation is a complete of sections measure since it’s the profitability measure hired by way of control for making choices about allocating assets to sections and assessing branch efficiency.

Adjusted branch running source of revenue margin (or adjusted branch running source of revenue as a % of income)
Adjusted branch running source of revenue margin is a non-IFRS ratio calculated by way of dividing our adjusted branch running source of revenue by way of income for a given duration. We observe it as a result of we consider it supplies an enhanced figuring out of our running efficiency and facilitates the comparability throughout reporting sessions.

Adjusted efficient tax price
Adjusted efficient tax price is a extra economic measure that represents the efficient tax price on adjusted internet source of revenue or loss. It’s calculated by way of dividing our source of revenue tax expense by way of our income earlier than source of revenue taxes, adjusting for a similar pieces old to resolve adjusted internet source of revenue or loss. We observe it as a result of we consider it supplies an enhanced figuring out of the affect of adjustments in source of revenue tax charges and the combo of source of revenue on our running efficiency and facilitates the comparability throughout reporting sessions.

Adjusted internet source of revenue or loss
Adjusted internet source of revenue or loss is a non-IFRS economic measure we worth as an alternative view of our running effects. We calculate it by way of taking our internet source of revenue as a consequence of fairness holders of the Corporate from proceeding operations and adjusting for restructuring, integration and acquisition prices, and impairments and alternative positive aspects and losses coming up from important strategic transactions or explicit occasions, then tax, in addition to important one-time tax pieces. Impairments and alternative positive aspects and losses coming up from important strategic transactions or explicit occasions include the impairment of approbation (as described in Notice 14 of our consolidated economic statements for the 12 months ended March 31, 2024), the impairment of era and alternative non-financial property (as described in Notice 5 of our consolidated economic statements for the 12 months ended March 31, 2024) and the impairment reversal of non-financial property following their repurposing and optimization (as described in Notice 5 of our consolidated economic statements for the 12 months ended March 31, 2023). We observe adjusted internet source of revenue as a result of we consider it supplies an enhanced figuring out of our running efficiency and facilitates the comparability throughout reporting sessions.

Adjusted income or loss according to proportion (EPS)
Adjusted income or loss according to proportion is a non-IFRS ratio calculated by way of dividing adjusted internet source of revenue or loss by way of the weighted moderate selection of diluted stocks. We observe it as a result of we consider it supplies an enhanced figuring out of our running efficiency on a according to proportion foundation and facilitates the comparability throughout reporting sessions.

EBITDA and Adjusted EBITDA
EBITDA is a non-IFRS economic measure which accommodates internet source of revenue or loss from proceeding operations earlier than source of revenue taxes, finance expense – internet, depreciation and amortization. Adjusted EBITDA additional adjusts for restructuring, integration and acquisition prices, and impairments and alternative positive aspects and losses coming up from important strategic transactions or explicit occasions. Impairments and alternative positive aspects and losses coming up from important strategic transactions or explicit occasions include the impairment of approbation (as described in Notice 14 of our consolidated economic statements for the 12 months ended March 31, 2024), the impairment of era and alternative non-financial property (as described in Notice 5 of our consolidated economic statements for the 12 months ended March 31, 2024) and the impairment reversal of non-financial property following their repurposing and optimization (as described in Notice 5 of our consolidated economic statements for the 12 months ended March 31, 2023). We worth EBITDA and altered EBITDA to judge our running efficiency, by way of getting rid of the affect of non-operational or non-cash pieces.

Distant coins stream
Distant coins stream is a non-IFRS economic measure that displays us how much money now we have to be had to spend money on expansion alternatives, pay off debt and meet ongoing economic tasks. We worth it as a trademark of our economic energy and liquidity. We calculate it by way of taking the web coins generated by way of our proceeding running actions, subtracting upkeep capital expenditures, intangible property expenditures aside from capitalized construction prices, alternative making an investment actions no longer connected to expansion and dividends paid and including proceeds from the disposal of constituent, plant and kit, dividends won from fairness accounted investees and proceeds, internet of bills, from fairness accounted investees.

Liquidity and Capital Construction measures

Adjusted go back on capital hired (ROCE)
Adjusted ROCE is a non-IFRS ratio calculated over a rolling four-quarter duration by way of taking internet source of revenue as a consequence of fairness holders of the Corporate from proceeding operations adjusting for internet finance expense, then tax, restructuring, integration and acquisition prices, and impairments and alternative positive aspects and losses coming up from important strategic transactions or explicit occasions divided by way of the common capital hired from proceeding operations. Impairments and alternative positive aspects and losses coming up from important strategic transactions or explicit occasions include the impairment of approbation (as described in Notice 14 of our consolidated economic statements for the 12 months ended March 31, 2024), the impairment of era and alternative non-financial property (as described in Notice 5 of our consolidated economic statements for the 12 months ended March 31, 2024) and the impairment reversal of non-financial property following their repurposing and optimization (as described in Notice 5 of our consolidated economic statements for the 12 months ended March 31, 2023). We worth adjusted ROCE to judge the profitability of our invested capital.

Internet debt
Internet debt is a capital control measure we worth to observe how a lot debt now we have then taking into consideration coins and coins equivalents. We worth it as a trademark of our general economic place, and calculate it by way of taking our overall long-term debt, together with the up-to-date portion of long-term debt, and subtracting coins and coins equivalents.

Internet debt-to-EBITDA and internet debt-to-adjusted EBITDA
Internet debt-to-EBITDA and internet debt-to-adjusted EBITDA are non-IFRS ratios calculated as internet debt divided by way of the latter three hundred and sixty five days EBITDA (or adjusted EBITDA). We worth internet debt-to-EBITDA and internet debt-to-adjusted EBITDA as a result of they mirror our talent to carrier our debt tasks.

Internet debt-to-adjusted EBITDA aside from Legacy Words additional excludes the affect from speeded up possibility popularity at the Legacy Words recorded within the fourth quarter of fiscal 2024. Internet debt-to-adjusted EBITDA aside from Legacy Words may be helpful as it supplies a greater figuring out of the precise and affect from speeded up possibility popularity at the Legacy Words on our talent to carrier our debt tasks.

Upkeep and expansion capital expenditures
Upkeep capital expenditure is a extra economic measure we worth to calculate the funding had to maintain the up-to-date point of monetary task. Enlargement capital expenditure is a extra economic measure we worth to calculate the funding had to building up the up-to-date point of monetary task. The sum of upkeep capital expenditures and expansion capital expenditures represents our overall constituent, plant and kit expenditures.

Enlargement measures

Adjusted form consumption
Adjusted form consumption is a extra economic measure that represents the predicted worth of orders now we have won:

• For the Civil Flying branch, we believe an merchandise a part of our adjusted form consumption when now we have a legally binding industrial word of honour with a shopper that comes with plenty quality about every celebration’s tasks to method the foundation for a commitment. Moreover, anticipated life revenues from shoppers underneath non permanent and long-term coaching words are incorporated when those shoppers decide to pay us coaching charges, or after we slightly be expecting the income to be generated;
• For the Protection and Safety branch, we believe an merchandise a part of our adjusted form consumption when now we have a legally binding industrial word of honour with a shopper that comes with plenty quality about every celebration’s tasks to method the foundation for a commitment. Protection and Safety words are typically done over a long-term duration however a few of them should be renewed every 12 months. For this branch, we handiest come with a commitment merchandise in adjusted form consumption when the client has licensed the commitment merchandise and has won investment for it.

Adjusted backlog
Adjusted backlog is a extra economic measure that represents anticipated life revenues and comprises obligated backlog, three way partnership backlog and unfunded backlog and choices:

• Obligated backlog represents the price of our adjusted form consumption no longer but done and is calculated by way of including the adjusted form consumption of the up-to-date duration to the steadiness of the obligated backlog on the finish of the former fiscal 12 months, subtracting the income identified within the up-to-date duration and including or subtracting backlog changes. If the quantity of an form already identified in a prior fiscal 12 months is changed, the backlog is revised via changes;
• Three way partnership backlog is obligated backlog that represents the predicted worth of our proportion of orders that our joint ventures have won however have no longer but done. Three way partnership backlog is enthusiastic at the similar foundation as obligated backlog described above, however excludes any portion of orders which have been immediately subcontracted to a CAE subsidiary, which might be already mirrored within the choice of obligated backlog;
• Unfunded backlog represents legally binding Protection and Safety orders with the U.S. executive that we’ve got won however have no longer but done and for which investment authorization has no longer but been bought. The indecision pertains to the timing of the investment authorization, which is influenced by way of the federal government’s price range cycle, in keeping with a September year-end. Choices are incorporated in adjusted backlog when there’s a top chance of being exercised, which we outline as a minimum of 80% possible, however multi-award indefinite-delivery/indefinite-quantity (ID/IQ) words are excluded. When an possibility is exercised, it is thought of as adjusted form consumption in that duration, and it’s got rid of from unfunded backlog and choices.

Stock-to-sales ratio
The book-to-sales ratio is a extra economic measure calculated by way of dividing adjusted form consumption by way of income in a given duration. We worth it to observe the extent of life expansion of the trade over date.

Alternative non-financial data definitions

Complete-flight simulators (FFSs) in CAE’s community
A FFS is a full-size copy of a selected form, style and line of an airplane cockpit, together with a movement device. In our depend of FFSs within the community, we usually handiest come with FFSs which can be of the very best constancy and don’t come with any constant founded coaching gadgets, or alternative lower-level gadgets, as those are most often old along with FFSs in the similar licensed coaching methods.

Simulator identical unit (SEU)
SEU is a measure we worth to turn the whole moderate selection of FFSs to be had to generate income all through the duration. For instance, relating to a 50/50 aviation coaching three way partnership, we can file handiest 50% of the FFSs underneath this three way partnership as a SEU. If a FFS is being powered indisposed and relocated, it’ll no longer be incorporated as a SEU till the FFS is re-installed and to be had to generate income.

Usage price
Usage price is a measure we worth to evaluate the efficiency of our Civil simulator coaching community. Era usage price does no longer completely correlate to income identified, we observe it, in conjunction with alternative measures, as a result of we consider it’s a trademark of our running efficiency. We calculate it by way of taking the selection of coaching hours bought on our simulators all through the duration divided by way of the sensible coaching capability to be had for a similar duration.

Reconciliations and Calculations

Reconciliation of adjusted branch running source of revenue

Reconciliation of adjusted internet source of revenue and altered EPS

Calculation of adjusted efficient tax price

Reconciliation of distant coins stream

Reconciliation of EBITDA, adjusted EBITDA, internet debt-to-EBITDA and internet debt-to-adjusted EBITDA

Reconciliation of capital hired and internet debt

For non-IFRS and alternative economic measures monitored by way of CAE, and a reconciliation of such measures to essentially the most immediately related measure underneath IFRS, please please see Division 11 of CAE’s MD&A for the quarter ended June 30, 2024 (which is integrated by way of reference into this press let go) to be had on our site (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov).

Consolidated Source of revenue Remark

Consolidated Remark of Complete Source of revenue

Consolidated Remark of Monetary Place

Consolidated Remark of Adjustments in Fairness

Consolidated Remark of Money Flows

Contacts

Media:
Samantha Golinski, Vice President, Family Affairs and World Communications, +1 438-805-5856, [email protected]

Investor Members of the family:
Andrew Arnovitz, Senior Vice President, Investor Members of the family and Endeavor Chance Control, +1-514-734-5760, [email protected]

SOURCE CAE Inc.