CAE Inc.

Good day ladies and gentlemen. Welcome to CAE's first quarter and full year FY2027 financial results and conference call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Mr. Andrew Arnovitz. Please go ahead, Mr. Arnovitz.

Good morning, everyone, and thank you for joining us today. Today's remarks, including management's outlook and answers to questions, contain forward-looking statements, which represent our expectations as of today, August 13, 2026, and accordingly are subject to change. Thank you very much. All of which are available on our corporate website and on our filings with the Canadian Securities Administrators on CDAR Plus and the U.S. Securities and Exchange Commission on EDGAR. On the call with me this morning from CAE are Calin Rovinescu, Executive Chairman, Matthew Bromberg, the company's President and Chief Executive Officer, and Ryan McLeod, our Chief Financial Officer. After formal remarks, we'll open the call to questions from financial analysts. Let me now turn the call over to Calin.

Good morning, everyone. Before Matt and Ryan take us through the Q1 results and discuss progress against the transformation plan, I'd like to briefly share a few observations. CAE's transformation plan is continuing at pace. As we announced with the year-end results, The work is centered on sharpening our portfolio, strengthening capital discipline and enhancing operational and financial performance with several clear objectives. Increase long-term resilience, improve execution against plan and support sustainable cash generation, profitability and returns. We wanted to start some of the heavy lifting required by the transformation plan right away So we chose not to wait for an investor day to launch it. The board receives regular updates on the plan and we're encouraged by the progress being made across its multiple work streams. Fundamentally, I believe CAE's long-term growth prospects remain strong. Our civil business continues to benefit from durable long-term aviation demand growth, As expanding air travel and higher aircraft deliveries will continue to require more of CAE's training services and simulation products. In defense, CAE is benefiting from generational upturn in defense spending happening around the world, especially in NATO countries, including, of course, here in Canada. Across the expanding defense ecosystem, we continue to see CAE's heritage, strategy, technology, and broad set of capabilities drive increased interest from governments and global OEMs, resulting in an expanded opportunity set. Overall, CAE has strong positions in two secular growth markets and an attractive long-term outlook supported by the idiosyncratic benefits of the transformation plans. Improve free cash flow generation, higher returns on invested capital, and significant opportunities to invest accretively across the business and provide better returns to shareholders. To support the execution of the company's long-term strategy, we are implementing a revised executive compensation framework that ensures incentives are aligned with transformation goals. Our short-term incentive program is now focused on free cash flow and adjusted segment operating income margin. Our long-term incentive program will center around adjusted return on invested capital and adjusted earnings per share to emphasize efficiency, profitability, growth, and long-term value creation. Additionally, as disclosed in the proxy circular, I announced my intention to transition to the role of non-executive chairman of the board effective January 1, 2027. This reflects our confidence in Matt and the rest of the leadership team and their ability to drive CAE's next chapter of growth and value creation, as well as the significant progress that the company has made in developing and beginning to execute the transformation plan and long-term strategy. I look forward to continuing to support Matt and the leadership team in this evolution while remaining involved in engagements with key stakeholder groups involving government partners, customers, and shareholders. Matt, over to you.