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Six pillars of strength

The six pillars below capture how we create value at CAE and what makes our company a sound investment.

We operate in highly regulated industries that require people to take frequent refresher training to renew their certification.

In addition, contractor-provided training is a rising trend in the defence sector.

Today nearly 60% of our business is derived from the provision of services compared to approximately 15% in fiscal 2001.

Our $6.4 billion backlog in fiscal 2016 bodes well for long-term sustainable growth.

Despite growing competition from large and smaller players alike, we continue to maintain our leadership in training equipment and services.

Our unique end-to-end cadet-to-captain training solutions and unrivalled customer intimacy also create a strong competitive moat.

Significant untapped market opportunities exist in our three growing core businesses.

In 2015, we divested our mining assets to focus on these three businesses.

In Civil Aviation Training Solutions, we address less than 25% of an approximately $3 billion training market.

In Defence & Security, we have an 8% share of the approximately $9.5 billion training systems integration (TSI) market.

In Healthcare, we are a leader in the nascent and fragmented simulation market.

Both the civil aviation and defence sectors are enjoying strong tailwinds.

CAE estimates that airlines will need 250,000 new pilots over the next 10 years to address the long-term growth in passenger traffic and the pilot shortfall due to retirements. As the global leader in cadet-to-captain pilot training, this is good news for us.

In addition, defence forces are increasingly adopting simulation-based training for more of their overall training curriculum. This training is both safe and cost-effective as well as saves valuable assets for operational requirements.

The interest in healthcare simulation is also rising in line with the growing concern around medical errors and patient safety.

We leverage our leading market position to deepen and expand our customer relationships.

We see an opportunity to further utilize our training network and generate more revenue from existing assets. Training revenue is recurring and less volatile.

At CAE, we believe we have the potential to grow faster than the underlying markets.

In collaboration with our customers, we design and deliver the most sophisticated training solutions.

Through our thought leadership and innovative solutions and partnerships, we are shaping the future of training.

At the same time, we are increasingly becoming the recognized global training partner of choice.