10-Year Airline and Business Jet Pilot Demand Outlook

DEFENCE & SECURITY Defence Growth Cycle 20% Canada 43% United States OCAE Revenue Distribution 26% Europe 11% 70% spending increase over 10 years Acquisition of Major Capital Assets Significant unmet needs Reliant on US defense technology ■ Persistent Defence budget increases Aerospace & Defence firms are ◉ Shaping portfolio to focus on core Vertically integrating Consolidating ■ Trend towards increased outsourcing ■ Focused on Foreign Military Sales Middle East Asia-Pacific Plans to recapitalize/modernize aircraft Near-term shortfalls delaying programs Increased bi-lateral cooperation ■ Reliant on US technology Instability in ME, IN/PAK, CH, NK Adoption of US technology Focus on Air/Naval Systems Historic increases in US Defence budgets are being met with similar increases in the EU, NATO, GCC and APAC CAE Inc. Proprietary Information and/or Confidential CAE

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