10-Year Airline and Business Jet Pilot Demand Outlook

10 CIVIL AVIATION TRAINING SOLUTIONS Market drivers COMMERCIAL AVIATION BUSINESS AVIATION Market expansion: Over the next 10 years, IATA forecasts passenger trips to grow by 3.5% annually Fleet renewal and expansion Commercial aircraft deliveries at historical levels and driven by OEM backlogs Activity of the installed base Training regulations Market expansion: New aircraft deliveries and sales of pre-owned aircraft generate increased training. demand Activity of existing active fleet Training regulations 5.2B 39K 27K 3.7B Passengers trips* Active commercial aircraft 2018 2028 2018 2028 4.5M 4.2M 27K 22K Business aviation training is predominantly outsourced Business Jet flights* Active business jets 2014 2017 2018 2028 CAE Civil business is supported by strong pilot demand and the recurring (and regulated) nature of training *Passenger trips: IATA Passenger forecasts, October 2017 Business Jet flights: millions takeoffs and landings, FAA data CAE Inc. Proprietary Information and/or Confidential CAE

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