CAE wins defence contracts valued at more than C$100 million

MONTREAL, CANADA–(Marketwired – July 7, 2016) – (NYSE:CAE)(TSX:CAE) – CAE today announced that it has won defence contracts valued at more than C$100 million to provide a range of simulation products and training support services for global military customers.

Some of the key contracts include Lockheed Martin awarding CAE a contract to provide synthetic training equipment for the rotary-wing element of the United Kingdom’s Military Flying Training System (UKMFTS) program; Lockheed Martin for CAE to continue managing the in-service support for the Royal Canadian Air Force’s (RCAF) CC-130J aircraft maintenance technician training program; and L-3 MAS issuing CAE an order to continue providing in-service support for the RCAF’s CF-18 fleet.

“Our expertise as a training systems integrator and experience on enduring military aircraft platforms is providing us numerous opportunities around the world as defence forces look to expand their use of simulation for integrated mission training,” said Gene Colabatistto, CAE’s Group President, Defence & Security. “We are particularly pleased to once again be selected to provide synthetic training equipment for the UK MFTS program as well as demonstrating the recurring business we have to support the RCAF with long-term services.”

Lockheed Martin/UK Military Flying Training System

CAE was awarded a contract by Lockheed Martin to provide Airbus Helicopters H135/H145 synthetic training equipment in support of the United Kingdom’s Military Flying Training System (UKMFTS) program.

CAE will provide a total of seven flight training devices (FTDs) and one command and tactics trainer (CTT) for the Airbus Helicopters H135/H145 family, which were recently selected as the training helicopters for the rotary-wing element of the UKMFTS program. All the training devices will be delivered in 2018 to Royal Air Force (RAF) Base Shawbury and used to support ab initio helicopter pilot training for the RAF, British Army and Royal Navy.

“We are pleased to once again be selected by Lockheed Martin to provide high-fidelity synthetic training equipment in support of the UK’s Military Flying Training System programme,” said Ian Bell, CAE’s Vice President and General Manager, Europe/Middle East/Africa. “We will now be providing simulators and training devices for both the fixed-wing and rotary-wing elements of UKMFTS, in addition to already having providing the Hawk full-mission simulators and tactical mission trainers used for rear-crew and observer training. The UK Ministry of Defence’s future aircrews will be receiving realistic and immersive virtual training in the highest-quality synthetic training equipment provided by CAE.”

Ascent, a joint venture of Lockheed Martin and Babcock, is the Training Service Partner responsible for delivering the UKMFTS program in partnership with the UK MOD. Recently, Ascent awarded a contract to Airbus Helicopters to supply a fleet of H135 and H145 helicopters to meet the rotary-wing training requirement. The two helicopter types incorporate the latest technology, allowing the crews to perform a wide range of training, from basic flying to offshore and night time operations. Lockheed Martin has specific responsibility for the provision of the ground-based training systems.

The FTDs developed by CAE will be equivalent to Level 4/5 flight simulation training devices (FSTDs) according to International Civil Aviation Organisation (ICAO) standards. In addition, the Level 4/5 FTDs can be networked for teaching multi-ship tactical formations. The CAE-developed Combat & Tactics Trainer will be a suite of four Level 1/2 FTDs that can be networked for teaching and practicing formation flying. All the CAE-built training devices will include the CAE Medallion-6000 image generator and databases built to the Common Database (CDB) standard, which enables distributed, interoperable mission training.

Lockheed Martin/Royal Canadian Air Force

CAE announced that Lockheed Martin has awarded the company a five-year contract to continue providing in-service support for the Royal Canadian Air Force’s CC-130J aircraft maintenance technician training program. The contract also includes options that could extend the in-service support by an additional five years.

Under the CC-130J Maintenance Training Program, CAE provides maintenance and support services for the CC-130J fuselage training devices, integrated cockpit systems training device, and virtual maintenance trainers. CAE also has responsibility for providing a range of training support services, including schoolhouse support staff, training device spares, upgrades and maintenance, hardware and software engineering, courseware updates, and obsolescence management.

L-3 MAS/Royal Canadian Air Force

L-3 MAS, a subsidiary of L-3 Communications, has issued an order for CAE to continue providing a range of in-service support solutions for the Royal Canadian Air Force’s CF-18 aircraft. CAE will provide avionics software upgrades, integrated logistics support and data management services. L-3 MAS has been the prime contractor on the CF-18 in-service support program since 1986, and CAE has been performing systems engineering support services for the CF-18 fleet for almost 30 years.

About CAE

CAE’s Defence & Security business unit focuses on helping prepare our customers to develop and maintain the highest levels of mission readiness. We are a world-class training systems integrator offering a comprehensive portfolio of training centres, training services and simulation products across the air, land, sea and public safety market segments. We serve our global defence and security customers through regional operations in Canada; the United States/Latin America; Europe/Middle East/Africa; and Asia/Pacific, all of which leverage the full breadth of CAE’s capabilities, technologies and solutions.

CAE is a global leader in delivery of training for the civil aviation, defence and security, and healthcare markets. We design and integrate the industry’s most comprehensive training solutions, anchored by the knowledge and expertise of our 8,000 employees, our world-leading simulation technologies and a track record of service and technology innovation spanning seven decades. Our global presence is the broadest in the industry, with 160 sites and training locations in 35 countries, including our joint venture operations, and the world’s largest installed base of flight simulators. Each year, we train more than 120,000 civil and defence crewmembers, as well as thousands of healthcare professionals. www.cae.com

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