Good morning, ladies and gentlemen. My name is John Manley. I'm Chair of CAE's Board of Directors. On behalf of the board and CAE's management team, it's my pleasure to welcome you to the 2022 Annual General Meeting of Shareholders. We're holding the meeting once again this year in a virtual-only format. This format allows shareholders and appointed proxy holders to attend, participate in real time, and vote at the meeting online through a web-based platform, regardless of their geographic location. Guests are also welcomed to attend and listen to the meeting. The meeting will be conducted in both French and English. You can listen to the webcast and view the presentation slides in either French or English. If you wish to change the language, click on the language icon shown on the top right side of your screen.
CAE celebrated a milestone seventy-fifth anniversary this year. This is remarkable longevity, distinguished by the organization's noble purpose to make the world a safer place. Through its unique innovative culture, CAE elevates safety standards and outcomes. CAE delivers excellence to customers and continually bolsters its societal impact. These past three years in particular have highlighted the company's extraordinary agility and its entrepreneurial spirit. Despite the lingering effects of the COVID-19 crisis on its core markets, CAE generated increasing levels of revenue and profitability throughout fiscal 2022. This is a testament to the bold actions the company took from the onset of the pandemic up to today. Now some introductions. I'm here in Montreal, Quebec. With me are some members of our executive management team. More specifically, Marc Parent, our President and Chief Executive Officer and Director. Sonya Branco, Executive Vice President, Finance and Chief Financial Officer.
Mark Hounsell, General Counsel, Chief Compliance Officer, and Corporate Secretary, who will be acting as secretary of this meeting. Hélène V. Gagnon, Vice President, Public Affairs and Global Communications, who will be acting as moderator with respect to any questions you may have today.
Our shareholders and guests are calling in from across the country and around the world. This was my last year as Chair of CAE's Board of Directors after a 14-year tenure on CAE's board, four as Chair. In line with our term limits policy, I'm not standing for re-election as a director. My last official duty is to chair this meeting, after which Alan N. MacGibbon will take over as the new chair. Alan was Managing Partner and Chief Executive of Deloitte LLP Canada from 2004 to 2012, and served on the Executive and Global Board of Directors of Deloitte Touche Tohmatsu Limited during this term.
Alan also served as Global Managing Director, Quality Strategy and Communications of Deloitte Touche Tohmatsu Limited, and Senior Counsel to Deloitte LLP Canada from June 2012 to December 2013. Alan has made valuable contributions since joining the CAE board in 2015 and will undoubtedly continue to do so in this new role as our chair.
As you can see in the agenda, we have a few items to deal with today. In addition to tabling our financial statements, there are three motions for consideration. Once all three motions have been voted on, we will announce our preliminary voting results. Immediately following the formal agenda, the President's report will be presented by Marc Parent, and Sonya Branco, our Chief Financial Officer, will provide a financial update. An opportunity will be provided at the end of their presentations for shareholders to raise general questions. Before we begin, I'd like to remind you that today's remarks, including answers to questions, contain forward-looking statements. These forward-looking statements represent our expectations as of today, August the 10th, two thousand twenty-two, and accordingly, they are subject to change. Such forward-looking statements are based on certain assumptions that may not materialize and are subject to risks and uncertainties.
Actual results could differ materially from these statements, and listeners are cautioned not to place undue reliance on these forward-looking statements. I would now like to proceed with the formal portion of today's meeting.
To order the annual meeting of the corporation's shareholders, Mr. Mark Hounsell will act as secretary of the meeting. Our corporate secretary has received a certificate of our transfer agent, Computershare Trust Company of Canada, indicating that proper notice of the meeting has been given in accordance with the Canada Business Corporations Act and the bylaws of the corporation. I direct that a copy of the notice with proof of service be kept by the secretary with the records of this meeting. With the consent of the meeting, I appoint Martine Gauthier, representative of Computershare, as scrutineer for this meeting. Let us now turn to the meeting procedures. CAE's bylaws provide that a quorum of shareholders is present at a meeting of shareholders if two or more persons holding not less than 25% of the shares entitled to vote at the meeting are present or represented by proxy.
The scrutineer has advised that we have the necessary quorum present. I now declare that this meeting is regularly called and properly constituted for the transaction of business. I would now ask the corporate secretary to explain the basic features of our virtual meeting platform and how you can vote at our meeting. Mark?
[Foreign language] . Thank you, Chair. When you are logged in as a shareholder or as a guest, you can see the information screen display. Here, you can read information about CAE, and you can ask questions. To see the slide presentation while you're listening to our webcast, simply click on the broadcast icon or on the arrow. If you wish to ask a question, please select the messaging icon and type your question into the message box at the bottom of the screen. Click the send button, and you should receive a confirmation that your message has been received. You may ask your questions in French or in English. Note that only registered shareholders of, or validly appointed proxy holders are permitted to ask questions. Ms.
Hélène V. Gagnon will be monitoring all questions being submitted and will relay them to the chair or to the relevant executive team member. Shareholders will also have the opportunity to ask questions verbally over the phone. If you wish to do so, enter your phone number and the subject of your question instead in the text box and then click the send button. A technician will call you. Once you've answered our technician's call, you will hear the meeting from your phone. We would ask that you mute your computer and listen to the live feed from your phone. This will prevent any delay or noise annoyance. When called upon to ask your question, you will be unmuted. If there are many similar questions on the same topic, Hélène V. Gagnon may pick one question or summarize the nature of the questions.
I'd like to remind you that questions should relate to the business or affairs of CAE that are being put forth for consideration at today's meeting and not those of a personal nature. In the event that we're unable to address your question during the meeting, or if your question is related to a personal matter, a CAE representative will follow up directly with you after the meeting.
Will be conducted by an online poll. Only registered shareholders or validly appointed proxy holders may vote on the three items of business. You will see a voting icon on your screen, and the resolution wording will be displayed. To vote, select one of the voting options. Your response will be highlighted. A confirmation message will appear to show that your vote has been received. To change your vote, simply select the other option. In order for your vote to be properly recorded, it is important that you remain connected to the Internet at all times. If you are not connected, your vote will not be recorded. The polls are now open on all three items of business. This will give you ample time to vote while we introduce each resolution.
The chair will remind you of your choice for each item, and after the last item of business, the chair will close the poll and provide a reminder to input your vote if you have not already done so. You should know that while each of the ballots cast today will be accounted for in the final results, proxies lodged with our registrar and transfer agent before this meeting allow the Chair, as a proxy holder, to determine the outcome of each of the motions that will go to a vote today. When each item of business is completed and the ballots have been completed as a result of the proxies received in advance of the meeting, the Chair intends to declare the motion carried or defeated, even though all the votes may not have yet been available.
In order to facilitate the flow of the meeting, since the meeting is conducted in a virtual-only format, the Chair has asked me, as a registered shareholder, to move all motions. The Chair will call on me at the appropriate time. Mr. Chair, over to you.
[Foreign language] .
Thank you, Mark. I hereby table the minutes of the annual meeting of shareholders, which took place on August 11th, 2021. The minutes will be inserted into the minute book of the corporation. Copies of the minutes will be made available upon request. The next matter on the agenda is to place before the meeting the financial statements and auditor's report thereon for the year ended March 31st, 2022. Copies have been made available to shareholders in May. I will be entertaining questions with respect to the financial statements of the corporation during the general question period.
To the first item of business for which shareholders are asked to vote, the election of directors. The management proxy circular contains a list and biographical profile of the 13 nominees recommended for election as director. Each nominee was elected at our 2021 annual shareholders meeting, except for Ayman Antoun, Elise Eberwein, and Patrick M. Shanahan, who are first-time nominees. I've already introduced our CEO, Marc Parent. The other director nominees are Margaret S. Billson from New Mexico, the Honorable Michael Fortier from Quebec, Marianne Harrison from Massachusetts, Alan MacGibbon from Ontario, Mary Lou Maher from Ontario, François Olivier from Quebec, General David Perkins from New Hampshire, Michael Roach from Quebec, and Andrew Stevens from the United Kingdom. Patrick M. Shanahan from Washington. We welcomed Mr. Shanahan as a new board member in April 2022. Mr.
Shanahan is a former U.S. Deputy Secretary of Defense. He brings 30 years of experience in defense policy, strategy, technology, supply chain, and operations that will strengthen our board. Elise Eberwein from Arizona. Ms. Eberwein has more than 35 years of commercial aviation experience. Most recently, she held the position of Executive Vice President, People, Communications and Public Affairs for American Airlines. Ms. Eberwein's experience and her knowledge of the aviation industry make her an undeniable asset to the CAE board. Finally, Ayman Antoun from Ontario. Mr. Antoun is General Manager for IBM Americas. He's also a member of IBM's performance team, composed of its top 50 executives worldwide. Mr. Antoun is an excellent addition to the CAE board as CAE further deploys its high-tech vision and mission.
Pursuant to a resolution adopted by the board of directors, the number of directors has been set at 13, and 13 eligible candidates have been nominated. Mark, may I ask you to move each of the 13 nominees as directors?
For the election of the directors, you will see the names of all 13 nominees, and please scroll down to make sure you voted on all 13 nominees. To cast your vote for a nominee, please select for. To withhold your vote for a nominee, please select withhold. If you do not press either for or withhold, as applicable, when voting is open, your vote will not be recorded, and you will be regarded as having abstained from voting. Preliminary results will be announced later today, and final results will be posted on our website. The next item on the agenda is the appointment of auditors.
I'll ask Mark Hounsell to introduce a motion to appoint PricewaterhouseCoopers as auditors of the corporation to hold office until the close of the next annual meeting of shareholders and for authorization for the directors to fix their remuneration.
I so move.
For the appointment of the auditors, to cast your vote in favor, please select for. To withhold your vote, please select withhold. The next motion is to approve on an advisory basis our approach to management compensation. CAE's management compensation is fully disclosed in the proxy circular made available to all shareholders in advance of this AGM vote. The CAE board of directors believes that the company's compensation system is appropriate and that it is directly linked to personal and corporate performance. We value your direct feedback on the executive compensation approach, and the board will consider the results of this vote when evaluating future compensation policies, procedures, and decisions. We will now vote on the following resolution. Resolve that the shareholders accept the approach to executive compensation disclosed in the management proxy circular. Again, Mark Hounsell will propose the motion for approval.
I so move.
To cast your vote for the executive management compensation, please select four. To vote against this resolution, please select against.
We'll now continue with the voting. If you've not already done so, please vote on all three items of business. I will give you some additional time now to finalize your voting selection. If you have already voted or sent in a proxy, there is no need for you to do anything at this time unless you would like to change your vote. I hope that now everyone has voted, and I declare the polls closed on these three items of business. I'd like to thank you.
Mr. Chair, the scrutineer's preliminary report indicates that 81.1% of the eligible shares have been voted at this meeting. The results with respect to the first item, the election of directors, are a substantial majority of the votes cast at the meeting were voted in favor of 12 of the 13 nominees named in the management proxy circular, with each nominee receiving in excess of 95.3% in favor. The result with the respect to the appointment of the auditors is 86.8% voted in favor of PricewaterhouseCoopers. The result with the last resolution with respect to the advisory vote on the approach to the executive compensation is 79.6% in favor of the resolution, and with respect to the election of the Human Resources Committee chair is 82.7%.
The final detailed results will be publicly available on SEDAR in the coming days. Mr. Chair.
Thank you, Mark Hounsell. We understand that the support with respect to the advisory vote on executive compensation and the level of support on the election of the chair of the Human Resources Committee may raise concerns. On behalf of CAE's board of directors and management, I'd like to emphasize that we are committed to responding to our shareholders, and we will take concrete actions as appropriate. Over the course of fiscal year 2023, CAE will engage with proxy advisory firms, its institutional shareholders, and other stakeholders to better understand any concerns or recommendations with respect to our compensation practices. Next year's proxy circular will contain enhanced disclosure on the nature of our engagement with investors and stakeholders, a summary of the key themes raised in those discussions, and if applicable, any resulting changes to CAE's compensation programs.
The next item on the agenda is the president's address to shareholders. Before I turn the floor over to our CEO, Marc Parent, let's watch a short video that highlights CAE's noble purpose.
Moments that matter. I hope like me, it kinda gives you goosebumps. That's what we do at CAE. We prepare you for the moments that matter. Whether you're a pilot preparing for an engine to quit at high speed on takeoff, whether you're a soldier preparing for a critical mission to be able to execute it and return home safely, whether you're a doctor performing a critical surgery, life-saving for the first time, we prepare you for those moments that matter. That's what we do at CAE, and we do it well.
Good morning, everyone, and welcome to CAE's Annual General Meeting. This year it is our great pleasure to celebrate 75 years of industry firsts, a remarkable journey guided by our noble purpose to make the world a safer place, as John just said earlier. For nearly three-quarters of a century, CAE has been recognized globally as a leader in innovation, and in the last two decades, it's been recognized for expanding its critical role as our customer's partner of choice for simulation products. Not just simulation products, but also for training services, operation support, and more recently, technology solutions. You saw our new visual identity and logo in the video.
They reflect our heritage and also our evolution and our bold vision for the future, which involves us leaning even deeper into technology to revolutionize the way we serve our markets and our customers all over the world. When we talk about technology, leading foundational technology shifts has long been part of our history. This has been part of our company's DNA, and as we enter the next horizon, our investments in technology will allow us to push the frontier of digital immersion in high-tech training and operational support solutions to even higher levels.
A lot of people have heard me say this before, I have never been more excited to be the CEO of this fantastic company. We have growth opportunities all around us, and we have amazing technology we invest in, and no shortage of headroom in our markets. As I look at fiscal year 2022, I'm delighted what we've delivered. We seized new opportunities through this period of high uncertainty and put CAE in a position of strength, having delivered double-digit growth with higher margins, excellent free cash flow, and near record order bookings. Actually, record order bookings. We're gaining market share by innovating and focusing on our customers, which is what is the key to our success. This is due to a large part to the more than 13,000 CAE employees around the globe. They've exemplified our unique culture and delivered outstanding performance.
Despite facing challenges at all levels for more than two years since the start of the pandemic, they have consistently demonstrated courage, resilience, and a drive to innovate. Together as one CAE, as we call it, we've adapted our strategy and our focus, fundamentally strengthening our organization's future. Now, let's have a look at, you know, how this breaks down in our different units for last year. In civil aviation, demand for air travel is increasing significantly, and I'm sure we all see it. If you're sitting here in North America, you see it, you felt it, you're doing it. That's leading to the potential for substantial growth in the future. Now full recovery to pre-pandemic levels continues to be primarily driven by the easing of the remaining travel restrictions.
What we see, what has begun in North America is now expanding in that respect around the world. We're seeing a steady increase in full flight simulator orders, and we're signing exclusive long-term training agreements with most of the major airlines in the Americas, which is a region where traveler recovery has been the strongest. We really believe that this provides a compelling group blueprint for what a global market recovery could look like for CAE. Furthermore, we remain very optimistic about the business aviation market in the long term because we're seeing a structural change to the positive in that market with higher usage and higher utilization of business aircraft.
If I look at it as a whole, based on this year's robust flight activity and future aircraft delivery schedule, we believe that this business is going to continue to experience strong growth in the years ahead. While there's still some debate about the pace and the shape of the recovery in the commercial market, it's clear that the trend that we are observing is skyward, upward, and CAE is well-positioned to be gearing up its training network to meet our customers' surging needs arising from the challenges that associated with restoring and growing the flight capacity in this rapidly recovering market. You know, at CAE we've produced, and we're very proud of this, we've produced and trained more pilots than any other company in the world by far.
That said, you know, our own forecast is showing that this industry is in short supply. 320,000 new pilots, including 60,000 for the exciting advanced air mobility market alone, will be needed over the next decade. It's very clear that the industry must take concrete action to broaden the talent pool to address that gap. To that point, you know, I point out the still shocking fact that women still make up only 5% of professional airline pilots worldwide. At CAE, we're committed to advancement of diversity and specifically women in aviation.
In line with our own objectives in terms of diversity, equity, and inclusion, we've recently announced the expansion of CAE's Women in Flight scholarship program into a broad ambassadorship program, building on the reach that we have with our airline partners around the world to create a movement that encourages young women to pursue a career as a commercial airline pilot. To pave the way for future generations of women pilots, these ambassadors will share their stories and experience with others at events within their communities and on social media. Building on top of that, with our recent acquisition of Sabre AirCentre, our digital ecosystem opens up further access to the civil aviation market.
This recent acquisition has expanded CAE's capabilities across a larger airline customer base, allows us to provide software and digital technologies to airlines and business jet operators, helping them run their businesses with greater efficiency and precision while providing the solutions to optimize flight plans, digitize and optimize crew planning, again, solving the problem by building efficiency, and help manage airport and airlines operations, which we know and we feel these days are in critical need of such improvements. With the resurgence in air travel that we've been seeing this year, you know, it's very clear that airlines are going to be needing these services more than ever.
Finally, through our very well-honed expertise in building technology to accelerate the development and the safe adoption of world-changing innovations, we're increasingly providing end-to-end solutions for the emerging electric vertical takeoff and landing market, or the eVTOL market, or some people refer to this as the air taxi market, although I personally don't really like that term. I think it shortchanges what these industries will be. This market promises a new wave of growth and technology development in civil aerospace, something that we only see once in a generation, a very exciting time, and CAE is gonna be part, a big part of that future. In summary, I'm extremely confident about our future in civil aviation. We're exceptionally well-positioned. As industry leaders, we have the potential for both cyclical and secular growth in this market as the recovery occurs and continues to broaden across the globe.
In defense and security, CAE is on a multiyear journey as the world's only pure-play platform-agnostic training and simulation provider, and we're leveraging our strengths in all five domains, air, land, sea, space, and cyber, as part of a more integrated and holistic approach to training and simulation for a broad array of solutions to our defense customers. CAE's mission has always been to prepare our military customers for safe and successful mission outcomes, readiness, and we're committed to aligning our defense business with our customers' utmost priorities in that regard. As we enter a rapidly changing future, our customers are adapting their training in the face of near-peer and geopolitical events that we see around us. Having to train for multi-domain scenarios means that today's military forces operate more sophisticated, more complex, and networked systems more than ever before.
For CAE, we're very proud to be able to support the evolving training needs of our defense forces around the globe in defending freedom at a moment's notice. While we could not have predicted or known when such geopolitical threats would manifest, they clearly have. Events in Europe this past year are a stark reminder that allied nations must, as I mentioned, be ready to defend freedom at a moment's notice. We expect that the prioritization of defense readiness as a strategic deterrent will lead to additional ways for CAE to support our customers' mission in the years ahead.
Take it all together with digital ecosystem partners, CAE is developing complex simulation and visualization technologies to create digital twins of the world, virtual synthetic environments that combine data and digital technology to enhance decision-making for governments and businesses in more complex multi-domain battle spaces. Over the past two years, we've really transformed the defense and security business, right? Repositioned our strategy to focus on those capabilities that are most important to our customers. This means that for the longer term, we are extremely well-positioned to win more and larger contracts. We're beginning to see the fruits of the strategic transformation that we've undertaken in defense and see that translate into additional business, into bids and order activity.
Last year, just as a case in point, last year was the first time in the last four years where orders exceeded revenue, and that by a wide margin. In the near term, defense expects to continue, you know, to work through the lagging effects of an extended period of less than one-to-one book-to-sales ratio , which has been our, you know, track record in the last three years. We also expect that in defense, supply and labor challenges that we've experienced recently to continue in subsequent quarters, but to be progressively mitigated by year-end. While it's very clear that we're not immune as a company to some of the pressures faced by defense peers and companies across the broader economy, we feel very confident in our ability to manage through them. Switching to healthcare.
CAE's business has great growth potential and even more relevance in a post-pandemic world, where simulation and virtual training can replace in-person or live educational experiences. The demographic undercurrents of an aging global population, along with the increased demand for nurses, point to continued rates of high growth in this market for the future. Healthcare is dedicated to developing customer focus and market-driven education solutions. I mean, we've expanded our portfolio of capabilities and of products with training simulation solutions that lend themselves to greater learner proficiency through immersive AR and virtual reality simulation and artificial intelligence integration or AI integration. We really see a market that values the capabilities of CAE simulation-based education solutions now more than ever, coupled with greater demand for healthcare workers. This is going to require new healthcare training and education approach, which CAE is very well-positioned to provide.
The longer-term potential in healthcare in terms of education is certain, and we believe that successful growth in this market is going to drive the healthcare segment to become an even more material and profitable part of CAE in the years to come. On the technology front, we've consistently evolved to lead the curve where technology is going to expand our position. We have track record of doing that for decades, and we're gonna continue to do more. In July 2021, we confirmed agreements with the governments of Canada and Quebec that will enable CAE to invest over CAD 1 billion in an innovation over a 5-year period, including the development of, as I mentioned, digitally immersive solutions using data ecosystems and artificial intelligence. These investments will reaffirm and continue to affirm CAE's leadership position in the technologies of tomorrow in each one of our business segments.
Just as a matter of example, we've invested to turn our flight simulators into IoT or Internet of Things-enabled devices that objectively, using data, push pilot proficiency to the highest possible standard. We're doing this today, but I believe that we are at the cusp of a revolution in this regard. We're layering onto that investments in biometrics to get at the heart of human performance in the context of training, giving us information about pilots that may not otherwise be perceptible externally. We're also developing simulation technologies of the future with virtual reality and mixed reality that offer ground-breaking training solution in terms of both cost and training efficacy, not just for pilots, but for maintenance technicians, healthcare professionals, and more in the future.
We're integrating very complex systems and applications that aircraft operators use daily to drive efficiencies and network effects across very complex systems. We're also creating, as I mentioned, digital twins for numerous uses, such as virtual training and large scale coordination, support readiness for near peer threats of the future, and to address airspace challenges on the global horizon.
On sustainability, we've ramped up CAE's environmental, social, and governance commitment. Our ESG commitment is to continue increasing our positive societal impact. We recognize the rising importance of ESG factors to CAE stakeholders and the industries and communities in which we operate. We've taken significant actions in fiscal 2022 in order to advance our ESG leadership. We strengthened CAE's human rights policy and introduced a supplier code of conduct to reinforce CAE's ESG impact across our entire value chain. CAE has been carbon neutral for two years now, and I'm very proud of that. Today, all CAE sites where we have operational control are 100% sourced with renewable energy or covered by renewable energy certificates.
What's more, CAE is deepening its environmental and climate action efforts through a decarbonization strategy that not only aims to reduce our carbon footprint, but also supports our customers in doing the same. To lead these ambitious and exciting initiatives, I appointed a Chief Sustainability Officer and Senior Vice President, Stakeholder Engagement on CAE's executive committee. We've also created a new leadership role, Chief Diversity, Equity and Inclusion Officer, in order to further accelerate our progress in this important ESG aspect. This year, I'm very proud to state that we've achieved a 21% increase in senior leadership diversity. Additionally, following today's annual general meeting and the election of all proposed director nominees, more than a third of CAE's board of directors will be diverse. We are making important strides, but we're not gonna stop there. We can always do better.
For more information, I'd invite you to read our annual activity and corporate social responsibility report. Now I'd like to turn the floor over to Sonya Branco, our Executive Vice President, Finance and Chief Financial Officer, to provide us with an overview of our financial results. Sonya?
Thank you, Mark. Turning now to results. We delivered strong performance for fiscal 2022. We worked diligently to overcome the ongoing COVID-related challenges and delivered double-digit revenue and adjusted segment operating income growth and higher margins. We also generated excellent free cash flow and helped to secure future growth with record order bookings and backlog, seizing on opportunities to expand our market reach, and we achieved our targets to lower our cost structure by approximately CAD 70 million annually.
For the year, consolidated revenue was up 13% to CAD 3.4 billion and was 23% higher, excluding the revenue last year from the ventilator contract. Adjusted segment operating income was up 58% to CAD 444.5 million, and annual adjusted net income was up CAD 261.5 million or CAD 0.84 per share, which is up 79% compared to CAD 0.47 last year. We generated strong free cash flow of CAD 341.5 million for the year for an annual cash conversion rate of 131%. In addition to having the benefits of secular tailwinds, we continue to demonstrate the cash generative nature of our business.
Uses of the cash involved funding capital expenditures for CAD 272.2 million for the year, mainly driven by the expansion of our civil aviation training network. These investments typically generate in a 20%-30% range of return on invested capital within the first few years of deployment and represent some of the best examples of growth compounding at CAE. Our net debt position at the end of the fourth quarter of FY 2022 was approximately CAD 2.7 billion, net debt to adjusted EBITDA of 3.6x. Over the last two years, we've completed nine accretive acquisitions for some CAD 2.1 billion and deployed nearly CAD 287 million of growth capital since April 2020.
Today, we reported revenue of CAD 933.3 million for the first quarter of fiscal 2023, compared with CAD 752.7 million in the first quarter of last year. First quarter net income attributable to equity holders was CAD 1.7 million or CAD 0.01 per share. This compares to CAD 46.4 million or CAD 0.16 per share last year. In the first quarter of fiscal 2023, adjusted net income was CAD 17.6 million or CAD 0.06 per share, compared to CAD 55.6 million or CAD 0.19 per share last year. Our operating income this quarter was CAD 39.4 million, compared to CAD 86.2 million last year. First quarter adjusted segment operating income was CAD 60.9 million, compared to CAD 98.4 million last year.
Adjusted segment operating income this quarter includes $28.9 million in unfavorable contract profit adjustments in defense, involving two programs in the United States. We had mixed performance in the first quarter, with civil delivering results in line with our view for strong annual growth, while defense came in well short of our expectations. This was as a result of discrete program charges and near-term headwinds in this early stage of its multi-year growth journey. Despite a challenging global environment, we secured over CAD 1 billion in total orders for a record CAD 10 billion backlog and a 1.12x book-to-sales ratio. In civil, we booked CAD 522 million in orders for a 1.09x book-to-sales ratio, including long-term training agreements with airlines and business aircraft operators and 11 full flight simulator sales.
In defense, we booked orders for training and mission support solutions valued at CAD 488 million for 1.18 times book-to-sales. In healthcare, we continue to drive double-digit revenue growth with our innovative solutions.
I'd like to thank you for your attention, and I'll now turn the microphone back to our CEO, Marc Parent.
Thank you, Sonya. Since the beginning of the pandemic, we were rowing against the tide, and we made bold decisions that put CAE in a position of strength. We used this period of lower business activity during the market downturn to optimize CAE's global footprint, as well as to improve operational performance, enhance customer services, and realize significant cost savings. They will continue regardless of volumes. For example, we consolidated our training locations to recalibrate our fixed costs, and we optimized our simulator fleet to put CAE's network in lockstep with our customers. In other words, in the right place, achieving greater global reach and efficiency, while also increasing our proximity to them. Therefore, we are more efficient.
With our nine accretive acquisitions during COVID, we were able to greatly expand CAE's competitive strengths and entered exciting new markets by taking advantage of market disruption to add capabilities at attractive valuations. Strategically expanding our business aviation footprint in key geographic locations gives us a well-placed global network. Very well-placed, while notable wins are expanding our growing pipeline. Looking at the period ahead, it's clear we aim to emerge from the pandemic a larger, stronger, and more profitable company.
We're entering the next upcycle with near record margins, even though the market is still quite a distance from full recovery, with plenty of room to grow beyond that. We're at the forefront of this industry recovery. We've invested both organically and inorganically to expand our training network globally, leveraging our position as the number one civil aviation training company in the world. We're opening up new centers in Las Vegas, Lake Nona, Florida, Singapore, and Savannah to meet increased demand in business aviation, and our commercial network continues to grow alongside a recovering market. We're now operating more than 300 flight simulators in 70 locations globally, ensuring the pilots we have trained take to the sky more efficiently and more reliably than ever.
As I mentioned earlier, we've grown beyond simulators and pilot training, and we're now providing digitally-enabled flight and crew operation solutions, helping customers better manage their operation, decrease their costly scheduling disruptions, improving staffing and operational decision-making, all while decreasing fuel consumption and carbon emissions. As I mentioned, events that we read about day in and day out tells us that there's a lot of need for those kind of digitally-enabled software solutions. Just last month, at the Farnborough Airshow, CAE made significant announcement that supports the company's efforts to reduce its carbon footprint and elevate its commitment as the first carbon-neutral Canadian aerospace company. For example, CAE will be developing an electric conversion kit for the Piper Archer aircraft that we operate, you know, a big fleet of in our civil training centers.
We expect to convert two-thirds of our fleet at our schools around the world while developing, at the same time, the training for future pilots to operate electric aircraft. In addition, CAE's partnered with multiple advanced air mobility key players and manufacturers to take a leadership role in the development of this all-electric air transport industry. Most recently, we were selected by Vertical Aerospace to be the training partner for the launch of Vertical's eVTOL aircraft, just as a case in point. We've also announced at Farnborough that we signed a memorandum of understanding with Boeing to expand our collaboration in defense training and explore future teaming opportunities in that regard.
Speaking about defense as a whole, as part of the segment of CAE, we're really at the early stages of a multi-year growth recovery journey, I would say, to become an even bigger and more profitable business than we've been in the past. You know, clearly current headwinds, including the ongoing global pandemic, geopolitical tensions and a war in Ukraine, decades high inflation, slower economic growth, and acute supply chain and labor shortages, all of which are risk factors that, you know, may influence the exact timing and rate of the market recovery, and we're dealing with that. Now, the conflict in Ukraine has galvanized NATO and allied nations' resolve vis-à-vis increased defense spending.
Now, however, the immediate priority on operational needs is contributing to training program award, actually delays in the shorter term, with priority again being operational needs. CAE continues to expect superior defense growth over a multi-year period to be driven by the progressive realization of the markets we see, increased defense spending, and of course, the realization of synergies related to the L3Harris military training integration and the translation of order intake and bid activity to revenue. Finally, in healthcare, we continue to seize ever-growing opportunities with our digital and our virtual learning training products to address the needs of an evolving learning environment. We really proactively address the increasing demand for healthcare workers with a new suite of training solutions, and we're leveraging advanced technologies to build sophisticated digital capabilities to continue to win and grow in the marketplace.
With a proven track record, our progress in healthcare, you know, reflects a clear focus on achieving greater scale and ramping up our organization. I firmly believe that CAE has a critical role to play in this industry. It perfectly represents the very core of our noble purpose to make the world a safer place, in this case, with improving patient safety. Our considerable growth does not stop there. Our unmatched dedication to bringing the digital and physical worlds closer through technology drives us to pursue new innovations. Let me take this moment to highlight our employees whose passion, commitment, and ingenuity are remarkable. Together, as one CAE, they display a high-tech mindset and they continuously raise the bar on innovation. They impress me evermore.
What our employees have been able to accomplish in the last two years, to me, has been nothing short of amazing, and I am grateful to you all. It is truly an honor for me to lead this company towards an even brighter future. Now, before turning the floor over to our chair, the Honorable John Manley, I would like to take a few minutes to acknowledge some changes to our board that will be taking effect later today. Served on CAE USA's board of directors since 2009, and as chair of our USA board since 2014, has recently stepped down.
As a former commander of U.S. Special Operations Command, Doug has had a long and very distinguished military career, and it is really under his leadership that CAE has transformed itself, and Defense has become, as just an example, a partner of choice for U.S. Army Aviation Training at Fort Rucker, which U.S. Army calls Mother Rucker because that's where pilots are trained, as well as special operations forces. The company, under his leadership, undertook the largest acquisition in our history with L3Harris' military training. I'd like to say we are extremely grateful for his years of guidance and direction, and it has been a true highlight and privilege of my career to have worked alongside such a great hero and a great human being. I would also like to welcome Mac Thornberry, who succeeded Doug as chair of the CAE USA board.
Later today, the Honorable John Manley will also be stepping down from CAE's board after a long and very impactful career. After his own career in public service, including serving as Deputy Prime Minister of Canada, John's guidance and the trust that he's placed in me as chief executive and my management team has been absolutely instrumental in allowing us to spread our wings, finalize numerous mergers and acquisition, and really reach the new heights that we aspire to. He's been a fantastic sounding board for our ideas. He's encouraged us to take the risks, calculated risk, and support us along the way, getting the job done.
This was especially true in the last couple of years, where we renewed our strengths and strategy, where we pivoted CAE's vision to become a technology solutions leader, taking the strength of what we did during the pandemic, building, for example, designing ventilators for the first time, as just a case in point. John, please accept my humble thanks on behalf of myself, the board, management, and everyone at CAE. As again, it's been an honor and a privilege to benefit and work along you and benefit from your guidance. Before closing, I'd also like to welcome Alan MacGibbon, who will succeed John as Chair of the CAE Board after today's meeting. I certainly look forward to continue our close relationship with him in his new role.
Also, I'd like to thank all members of our board for their advice and support and, of course, you, our shareholders, for your trust. Thank you for supporting us in our collective commitment to bringing the digital and physical worlds closer to technology. Together, we are going to continue to be there and prepare people for those moments that matter. Thank you.
Well, thank you, Mark. [Foreign language] . Thank you for your kind words.
I would now like to invite shareholders of record and proxy holders to submit your questions online if you haven't done so already. As noted earlier, you can select the messaging icon on the bottom of your screen and type your question or your comment into the chat box at the bottom left-hand side of your screen. Samantha, do we have any questions from shareholders?
No questions on the platform.
We'll pause momentarily to see if anybody wants to send something at the last moment. Seeing none, I would like to take this opportunity to thank my fellow directors and the management team for their confidence in me during my 14-year tenure on CAE's board. It's been an honor to lead a board of this caliber. I'm extremely proud of what we've accomplished together, and Mark summarized it very well because the last two years was not on anyone's game plan when we looked forward. I think, you know, what we did to perform, to take advantage of very difficult circumstances and to come out the other end bigger, stronger, and more profitable will stand this company in good stead for years to come.
For the last time as chair, a word of thanks to all CAE employees across the world for their commitment to the company's core values and for its strategy to ensure continued success going forward. To our shareholders, thank you for your ongoing support and trust in CAE's ability to generate meaningful economic, social, and environmental benefits. This officially concludes the meeting. On behalf of CAE, thank you all for having participated. Until we meet again, we wish good health to you and your families, and your communities. This meeting is now terminated. Thank you.