Cae CAE

CAE Inc. provides training and simulation solutions for the civil aviation and defense and security markets worldwide. The company draws on nearly 80 years of experience to deliver flight simulation equipment, training programs and digital services that help customers prepare for critical operations. Its business model benefits from recurring revenues driven by regulatory training requirements and long term service contracts. It is recognized as the world’s largest provider of civil aviation training services.

CAE Inc. generates revenue through the sale of full flight simulators and other training devices, the delivery of ab initio pilot training and crew sourcing services, the provision of airline operations digital solutions, and the offering of defense and security training and mission rehearsal contracts. Aftermarket support, spare parts, and service contracts also contribute to the company’s income. Revenue is derived from both commercial airlines and governmental defense organizations. Aftermarket services, including spare parts and technical support, represent a significant share of recurring revenue.

The company operates through the following segments: Civil Aviation and Defense and Security.

• Civil Aviation: This segment delivers comprehensive training for flight crew, cabin crew, maintenance technicians, ground personnel, and air traffic controllers in commercial, business, and helicopter aviation. It supplies a full range of full flight simulators, provides ab initio pilot training and crew sourcing services, and offers airline operations digital solutions such as flight management and crew management tools. CAE Inc. maintains a global network of more than 85 sites and manages approximately 363 full flight simulators, including those held in joint ventures. The segment operates the largest ab initio flight training network worldwide with about 20 cadet training programs across different regions. It has developed first to market simulators for more than 30 aircraft models, and its equipment is built to endure several decades of service. Addressable market for civil aviation training is estimated at more than $7 billion, providing significant headroom for growth. It maintains long term training centre operations, training services agreements and joint ventures with over 50 major airlines and aircraft operators.

• Defense and Security: This segment supplies scalable, platform independent training and simulation solutions that enhance force readiness and security for defence forces, original equipment manufacturers, government agencies, and public safety organizations worldwide. It supplies mixed reality devices, high fidelity full mission simulators, and a suite of simulation based technologies that incorporate biometrics, real time feedback, artificial intelligence, and adaptive rehearsal scenarios. Solutions range from turnkey training centres to tailored live, virtual, and constructive offerings at government owned locations. CAE Inc. works with military and industry partners on programs such as Canada’s Future Aircrew Training initiative with SkyAlyne, the MQ9B SkyGuardian remotely piloted aircraft system with General Atomics, and Bell Textron’s tiltrotor aircraft for the US Army Future Long Range Assault Aircraft. The company serves as an authorized training provider for Bombardier’s Global 6,500 platform supporting the High Accuracy Detection and Exploitation System. It also collaborates with Lockheed Martin on global C130 training solutions, and with Boeing on mission critical platforms such as the P8 and CH47. Its global footprint includes more than 140 sites across more than 85 different platforms and multiple domains. Addressable market for defence and security training is estimated at more than $15 billion. The company is present wherever customers need training, leveraging a global network and local expertise to deliver efficacy at all proficiency levels.

CAE Inc. holds a leading position in the global training and simulation industry, competing with firms such as L3Harris Technologies, Thales Group and Lockheed Martin. Its competitive advantages stem from an extensive installed base of simulators, proprietary digital training platforms like CAE Rise, long term relationships with major airlines and defence contractors and a worldwide service network that provides real time remote monitoring and spare parts support. The company’s focus on technology leadership, continuous innovation and integrated sustainability further differentiates it from rivals.

The company serves a diverse customer base that includes major commercial airlines, regional airlines, business aircraft operators, civil helicopter operators, aircraft manufacturers, third party training centres, flight training organizations, air navigation service providers, maintenance repair and overhaul organisations, aircraft finance leasing companies, defence forces, OEMs, government agencies, and public safety organisations. Specific customers named in the filing comprise Lockheed Martin, Boeing, Bombardier, General Atomics, KF Aerospace, Leonardo, NATO, the US Army, the USAF, the Royal Canadian Air Force and the German Air Force.