Investor Overview February 2020 Forward Looking Statements This - - PowerPoint PPT Presentation

Investor Overview February 2020

2 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Forward Looking Statements

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “project”, “may”, “will”, “should”, “could”, or similar words suggesting future outcomes or outlooks. These forward-looking statements include, but are not limited to, statements of expectations of or assumptions about strategic actions, objectives, expectations, intentions, aerospace market conditions, aircraft production rates, financial and operational performance, revenue and earnings growth and profitability and earnings results. These statements are based on the current projections, expectations and beliefs of Triumph’s management. These forward looking statements involve known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from any expected future results, performance or achievements, including, but not limited to, competitive and cyclical factors relating to the aerospace industry, dependence on some of Triumph’s business from key customers, requirements of capital, uncertainties relating to the integration of acquired businesses, general economic conditions affecting Triumph’s business segments, product liabilities in excess of insurance, technological developments, limited availability of raw materials or skilled personnel, changes in governmental regulation and oversight and international hostilities and terrorism. Further information regarding the important factors that could cause actual results, performance or achievements to differ from those expressed in any forward looking statements can be found in Triumph’s reports filed with the SEC, including in the risk factors described in Triumph’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019.

3 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Company Overview

Global leader in manufacturing aircraft systems and components, repair and

• verhaul, and aerospace structures.

Three operating segments:

• Integrated Systems
• Product Support
• Aerospace Structures

Market cap as of 5/10/19: $1.120B Shares

• utstanding:

49.8M FY’19 revenues: $3.4B FY’19 adjusted EPS: $2.49 Backlog as of 3/31/19: $3.8B

Our wide variety of capabilities and products helps our customers triumph over the most complex challenges in response to evolving industry requirements.

NYSE:TGI Headquarters: Berwyn, PA Incorporated: 1993 Fiscal year ending: March 31

4 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

FY19 Revenue Consolidated Highlights

Integrated Systems ~$1.0B Product Support ~$284M Aerospace Structures ~$2.1B*

Commercial, 53% Military, 20% Business, 23% Regional, 2% Non-Aviation, 2%

Sales by Market (FY19) $3.4B

Integrated Systems, 67% Aerospace Structures, 14% Product Support, 18%

Adjusted Operating Income (FY19) $166M

Business Unit Summary

* Includes Interiors Business ~$320M in FY19 Sales

Integrated Systems and Product Support will be reported on combined basis as Systems & Support beginning March 2020

5 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Investment Considerations

Portfolio transformation of Triumph is largely complete, and positive financial results will follow in this fiscal year. Broad range of design and manufacturing capabilities for next generation commercial aircraft products and mission critical military applications Well positioned on large volume mature platforms, new build derivatives and high growth military development programs Sole source supplier on numerous aircraft platforms Poised for growth in high margin Integrated Systems and Product Support segments Improved balance sheet strength and liquidity provide financial flexibility to fund future growth

6 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

500 1,000 1,500 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E2020E Boeing Airbus

Res esilie ient, strong end end market t fun fundamentals

Air Travel is Resilient and Growing

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 1980 1985 1990 1995 2000 2005 2010 2015 2020E 2025E 2030E 2035E RPKs Trend Line Forecast Financial Crisis SARS 9/11 Asian Crisis Gulf Crisis Oil Crisis x2 x2 x2 World Annual Traffic (PPKs in trillions)

Boeing and Airbus Have Amassed Record Backlogs… …Creating Significant Visibility and Continued Growth

Boeing and Airbus Deliveries

Mult ultiple secu cular r dr drivers create a favorable back backdrop for

• r con

continued growth

Source: ICAO, HIS Economics, Sabre, Boeing Current Market Outlook (2016–2035) and Wall Street Research

5,000 10,000 15,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Boeing and Airbus Backlogs Airbus Boeing

7 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Overview of key programs Revenue breakdown (FY19)

Program Key products Boeing 787

• Landing gear extend / retreat system
• Longerons, stringers, shear ties, frame assemblies

Boeing 767 / Tanker

• Landing gear, actuators and cowl opening systems
• Tail section, wing center section
• Keel beams, acoustic panels, various nacelle components
• Aft body fuselage panels

Boeing 737

• Hydraulic valves and actuators
• Mechanical system components
• Engine gearboxes

G500 / 600 / 650

• Wings
• Wing stringers and spars
• Horizontal stabilizer

A320

• Hydraulic valves and actuators, power transfer units
• Sharklet wing reinforcement kits
• Engine gearboxes

V-22 Osprey

• Pylon conversion actuators
• Nose wheel steering
• Empennage
• Ramp and ramp door
• Side panels, sponsons and landing gear doors

A330, A340

• Landing gear valves
• Wing components

A350

• Thermal Insulation Systems and Rudder Components

Boeing 777

• Inboard/Outboard Flaps, Ailerons and Spoilers

F-35

• Engine mounts, bulkheads, longerons and wing ribs

Aerospace Structures 61% Integrated Systems 31% Product Support 8% By segment

Note: Segment breakdown excludes elimination of intersegment sales

Div Diverse content t on

• n Key

y Programs

Well pos positi tioned on

• n large volu
• lume, ramping,

g, ne new de derivatives and nd hi high gh growth th mi military pl platforms

8 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Integrated Systems

Superior design, development and support of proprietary components and systems as well as production of complex assemblies using external designs

Integrated Systems and Product Support will be reported on combined basis as Systems & Support beginning March 2020

9 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Integrated Systems

Integrated solutions, including design, development, and support of components, systems and sub-systems

• Boeing
• GE
• Airbus
• Rolls Royce

Products & Services Major Customers Business Overview

$1.0B Revenue (FY19) 17 Locations

Commercial, 52% Military, 36% Business, 6% Regional, 3% Non-Aviation, 3%

Sales by Market Overview Capabilities

Actuation & Controls Gear Systems Mechanical Solutions Electronics & Controls Fluid Power & Actuation

Excludes Intercompany Sales and Contract Liability Amortization

Integrated Systems and Product Support will be reported on combined basis as Systems & Support beginning March 2020

10 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Product Support

Superior lifecycle solutions for commercial, regional and military aircraft for OEMs and operators

Integrated Systems and Product Support will be reported on combined basis as Systems & Support beginning March 2020

11 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Product Support

Provides total life cycle solutions for commercial, regional and military

• aircraft. Offerings include

full post-delivery value chain services that simplify the MRO supply chain

• L3
• Boeing
• GE
• Delta

Products & Services Major Customers Business Overview

$284M Revenue (FY’19) 6 Locations

Overview Capabilities

Structural Component Repair Interior Refurbishment Accessory Component Repair

Commercial, 78% Military, 16% Business, 1% Regional, 5%

Sales by Market

Excludes Intercompany Sales and Contract Liability Amortization

Integrated Systems and Product Support will be reported on combined basis as Systems & Support beginning March 2020

12 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Aerospace Structures

Extensive capabilities to engineer complex composite aerostructures

13 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Aerospace Structures

TAS provides fully integrated, turn-key composite and metallic major assemblies, and interior system solutions employing the latest product development and manufacturing tools, processes and software to its diverse portfolio of commercial and military customers.

• Boeing
• Gulfstream
• Airbus
• Northrup Grumman

Products & Services Major Customers Business Overview

$2.1B Revenue (FY’19) 15 Locations*

Overview Capabilities

Fuselage Nacelle Products Empennage

Commercial, 50% Military, 12% Business, 35% Regional, 2% Other, 1%

Sales by Market

Fuselage Panels Insulation Blankets Ducting Composites Aircraft Wings

* After December 2019 divestiture of Nashville business

Excludes Intercompany Sales and Contract Liability Amortization

14 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Quality of Backlog

Highlights

• Divested low-margin Build-to-Print businesses
• Transitioning development and underperforming programs
• Sunsetting programs continue to decline
• Military growth has enhanced stability
• Rate reductions impacting average margin programs
• Margins increased 560 bps over 12 month period

11.2% 16.8%

2% 6% 10% 14% 18% $1 $2 $3 $4 $5

TTM GM %

Backlog ($ billions)

Backlog & Margin Trend

Mar Margins enh nhanced by by imp mproving qu quality ty of

• f ov
• verall back

backlog

Margins presented equal gross margin after depreciation on a trailing 12-month basis

15 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Top Programs in Backlog

Integrated Systems Aerospace Structures

Boeing 737 Airbus A320, A321 Boeing 787 Boeing V-22 Boeing AH-64 Boeing CH-47 Sikorsky UH60 Boeing F-18 Lockheed Martin C-130 Sikorsky CH-53 Represents 56% of Integrated Systems backlog Boeing 767, Tanker Gulfstream G650 Boeing 787 Boeing 747 Boeing 737 Boeing 777 Airbus A350 NG Global Hawk Boeing V-22 Gulfstream G550 Represents 83% of Aerospace Structures backlog

16 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

The Path to a Stronger Triumph…

REVENUE GROWTH FY2019 Mar As Rptd

~4%

$2.8B

TGI ANNUAL REVENUE*

~ 7%

FY2019 PF Mar *

TIS/TPS ~ 5% ~61% ~ 55%

Shrink to grow in core businesses

~ 4%

CONTRACT MANUFACTURING %

• Adj. EBITDAP

MARGIN Path to Value Actions

Shift toward higher IP and aftermarket product offerings Leaner model; increased profits Increased; profitable backlog

~(16%)

BACKLOG GROWTH

* Proforma represents divestitures completed as of 4/1/18 FY19. See appendix for details.

TAS ~ 6% TIS/TPS ~ 6% TAS ~ (3%)

AEROSPACE STRUCTURES

$1.5B PF FY19 Sales ~5% FY19 EBITDAP Margin FY21 ~10% EBITDAP Margin

• Composite Components
• Interiors
• Military Structures
• Commercial Structures

PRODUCT SUPPORT

$0.3B PF FY19 Sales ~18% FY19 EBITDAP Margin FY21 ~21% EBITDAP Margin

• Accessory Component

Repair

• Interior Refurbishment
• Structural Component

Repair

• Fuel System Services

INTEGRATED SYSTEMS

$1.0B PF FY19 Sales

~15% FY19 EBITDAP Margin FY21 ~19% EBITDAP Margin

• Electro-Mechanical

Actuation

• Fluid Power
• Mechanical Actuation
• Fuel Systems
• Gear Systems

17 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

…Focused on our Core

REVENUE GROWTH FY2019

PF Mar *

~7%

$1.6B

TGI ANNUAL REVENUE*

~10%

INTERIOR SYSTEMS

$0.3B PF FY19 Sales ~15% EBITDAP FY19 Margin FY21 ~15% EBITDAP Margin

• Insulation Blankets
• Ducting
• Floor Panels
• Composite Interior

Components

PRODUCT SUPPORT

$0.3B PF FY19 Sales ~18% FY19 EBITDAP Margin FY21 ~21% EBITDAP Margin

• Accessory Component

Repair

• Interior Refurbishment
• Structural Component

Repair

• Fuel System Services

FY2019 Core PF Mar *

INTEGRATED SYSTEMS

$1.0B PF FY19 Sales

~15% FY19 EBITDAP Margin FY21 ~19% EBITDAP Margin

• Electro-Mechanical

Actuation

• Fluid Power
• Mechanical Actuation
• Fuel Systems
• Gear Systems

TIS/TPS ~ 6% ~55% ~43% ~5%

CONTRACT MANUFACTURING %

• Adj. EBITDAP

MARGIN Aerospace Structures Strategic Alternatives Review

~4%

BACKLOG GROWTH

* Proforma represents divestitures completed as of 4/1/18 FY19. Proforma core represents Integrated Systems, Product Support and Interiors businesses.. See appendix for details.

TAS ~ (3%) CORE ~ 6%

18 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Source: 2019 Oliver Wyman Global Fleet MRO Market Forecast

Total MRO Spend by Region: 2019 - 2029

TIS TPS PN

MRO Sites

Triumph MRO Coverage

Well-positioned to support robust global MRO demand

PN= Partnerships

19 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Source: 2019 Oliver Wyman Global Fleet MRO Market Forecast

TGI MRO Focused on Components Segment

Triumph’s proprietary component portfolio well matched with market demand

• Gearboxes
• Fuel & Hydraulic pumps, power packs, & RATs
• Nose wheel steering
• Power transfer units
• Actuation & uplocks
• Flight control surfaces
• Heat exchangers
• Air & Vapor cycle machines
• Thrust reversers
• Inlets, nacelles
• Hydraulic fuses, accumulators,

and control valves

• FADEC units
• Generators
• Fuel metering units
• Winglets
• Interior components
• Insulation

20 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Aftermarket Cross-Selling Strategy

Collaborating across business units to grow aftermarket

OEM Spare End Item Sales OEM Spare Piece Part Sales OEM Test, Repair & Overhaul Services Third-Party Test, Repair & Overhaul Services Triumph Integrated Systems Triumph Product Support Repair Management Services

Platform OEMs Distributors Airlines & Operators

Innovative Support Solutions

Military Engine / System OEMs

Customers

 Actions:

− Assess leakage − Upgrade talent − Export Best Practices between businesses − Engage TPS sales team − Enhance customer support & responsiveness − Go to Market as one TGI MRO team (1-833-FLY-WTGI) − Create one face to the customer − Continued execution of strategic partnership efforts to drive global reach

21 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Consolidated Quarterly Results

($ in millions) FY’20 Q3 FY’19 Q3 Net Sales $705 $808 Operating Profit/(Loss) 2 (17) Operating Margin 0% (2)% Adjusted Operating Income* $64 $38 Adjusted Operating Margin 9% 5%  Organic sales increase of 8%

− Increase across all business units

 FY’20 Q3 Adjusted operating income excludes:

− $1M union OPEB-related incentives − $(4M) legal settlement gain − $60M loss on sale of assets and businesses − $5M restructuring costs

 FY’19 Q3 Adjusted operating income excludes:

− $52M forward loss charges − $2M restructuring costs

Di Diversified pr prod

• duct

t off

• ffering and

nd improved executi tion enh nhanced op

• perati

ting results

*See Appendix for Non-GAAP reconciliation

22 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Free Cash Flow Walk

Cash Drivers

 Restructuring used $5M in Q3  Q3 FY’20 Net working capital growth of $11M includes:

− $20M advance liquidations − $10M use on G280

See Appendix for reconciliation of cash used in operations to free cash use

Consolidated ($ in millions) FY’20 Q3

Triu riumph shif hifted from ca cash us use to to ca cash ge generation

Net Loss $ (14) Non-cash items: Depreciation & Amortization 30 Interest Expense & Other 33 Amortization of Acquired Contracts (17) Loss on divestiture 60 Pension & OBEB (Income)/ Expense (14) Share-based Expense 3 Income Tax Benefit (4) Cash uses: Working Capital Change (11) Interest Payments (12) Capital Expenditures (10) OPEB Payments (2) Tax Payments, net (2) Free Cash Flow $ 40

23 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Net Debt & Liquidity

($ in millions) FY’20 Q3

Strong li liquidity ty, extended mat maturit rities timing and nd co covenant t com compliant

Cash $ (54) $639M Revolving Credit Facility

• $75M Receivable Securitization Facility

75 Capital Leases 26 2014 Senior Notes Due 2022 300 2019 Senior Notes Due 2024 525 2017 Senior Notes Due 2025 500 Net Debt $ 1,372  Cash and Availability ~ $635M  Senior Secured Leverage Ratio ~1.9x vs. 3.50x  First Lien Leverage Ratio ~0.4x vs. 2.50x  Interest Coverage Ratio ~3.4x vs. 2.75x

24 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

FY’20 Guidance

*Represents the normalized tax rate of 21%, adjusted for anticipated reduction through partial release of the valuation allowance

Bus usiness focu cused on

• n cor

core growth th, imp mproved ma margins and nd FCF CF ge generati tion

TGI Guidance Prior Guidance

Revenue $2.8B – $2.9B $2.8B – $2.9B GAAP EPS $1.28 – $1.48 $1.34 – $2.35 Adjusted EPS $2.35 - $2.55 $2.35 – $2.95 FCF $0M – $50M $0M – $50M Capex $40M -$50M $50M – $60M Effective Tax Rate* ~10% ~21%

25 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

FY’20 Cash Flow Guidance

Ach chievement of

• f pos

positi tive ca cash flow w reflects pr progr

• gress in

n tur urnaround

See Appendix for reconciliation of cash used in operations to free cash use

TGI Guidance Prior Guidance Cash from operations $40M – $100M $50M – $110M Capex $40M – $50M $50M – $60M FCF $0M – $50M $0M – $50M Advance Liquidations ($60M) ($80M)

26 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Concluding Remarks

• Delivered strong Q3 results
• Maintain positive Free Cash Flow guidance in FY’20
• Transformation positions Triumph for profitable growth

27 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Our Vision

We aspire to be the premier design, manufacturing and support company whose comprehensive capabilities, integrated processes and innovative employees advance the safety and prosperity of the world.

Our Mission

As One Team, we partner with our customers to triumph over the hardest aerospace, defense and industrial challenges, enabling us to deliver value to our shareholders.

Our Values

Integrity Continuous Improvement Teamwork Innovation Act with Velocity

28 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Appendix

29 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Supplemental Data

Pension/OPEB Analysis ($ in millions) FY’20 FY’19 Pension Expense (Income) ^ ≈ ($43) ≈ ($51) Cash Pension Contribution ≈ $2 ≈ $5 OPEB Expense (Income) ^ ≈ ($10) ≈ ($10) Cash OPEB Contribution ≈ $15 ≈ $12 ^ Excludes impact from one-time adjustments such as curtailments, settlements or special termination benefits.

30 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Non-GAAP Disclosure

Non-GAAP Financial Measure Disclosures (continued) Adjusted income from continuing operations, before income taxes, adjusted income from continuing operations and adjusted income from continuing operations per diluted share, before non-recurring costs have been provided for consistency and

• comparability. These measures should not be considered in isolation or as alternatives to income from continuing operations

before income taxes, income from continuing operations and income from continuing operations per diluted share presented in accordance with GAAP. The following tables reconcile income from continuing operations before income taxes, income from continuing operations, and income from continuing operations per diluted share, before non-recurring costs.

Three Months Ended December 31, 2019 Pre-Tax After-Tax Diluted EPS

Loss from continuing operations - GAAP $ (17,528 ) $ (13,846 ) $ (0.27 ) Adjustments: Loss on sale of assets and businesses, net 60,019 47,415 0.93 Legal judgment gain, net of expenses (3,857 ) (3,047 ) (0.06 ) Union incentives 1,400 1,106 0.02 Restructuring costs 4,744 3,748 0.07 Adjusted income from continuing operations - non-GAAP $ 44,778 $ 35,376 $ 0.69

Nine Months Ended December 31, 2019 Pre-Tax After-Tax Diluted EPS FY20 EPS Guidance Range

Income from continuing operations - GAAP $ 59,420 $ 46,943 $ 0.93 $1.28 - $1.48 Adjustments: Loss on sale of assets and businesses, net 55,190 43,600 0.86 1.07 Curtailment gain & special termination gain, net (14,373 ) (11,355 ) (0.22 ) (0.28 ) Legal settlement gain, net of expenses (9,257 ) (7,313 ) (0.14 ) (0.18 ) Union incentives 7,071 5,586 0.11 0.14 Restructuring costs 13,490 10,657 0.21 0.26 Refinancing cost 3,030 2,394 0.05 0.06 Adjusted income from continuing operations - non-GAAP* $ 114,571 $ 90,512 $ 1.79 $2.35 - $2.55

* Differences due to rounding

31 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Non-GAAP Disclosure

Non-GAAP Financial Measure Disclosures (continued) Adjusted Operating Income is defined as GAAP Operating Income, less expenses/gains associated with the Company's transformation, such as restructuring expenses, gains/losses on divestitures, defin ed benefit plan gains/losses from curtailments, settlements, etc; impairments of goodwill and other assets. Management believes that this is useful in evaluating operating performance, but this measure should not be used in isolation. The following table r econciles our Operating income to Adjusted Operating income as noted above.

Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018

Operating income (loss) - GAAP $ 1,661 $ (16,933 ) $ 98,209 $ (85,482 ) Adjustments: Adoption of ASU 2017-07 — — — 87,241 Loss on sale of assets and businesses, net 60,019 — 55,190 17,837 Global 7500 forward loss charge — 40,498 — 60,424 E2 Jet program forward loss charge — 9,162 — 9,162 G280 program forward loss charge — 2,516 — 2,516 Reduction of prior Gulfstream forward loss — — — (7,624 ) Restructuring costs 4,744 2,327 13,490 18,206 Legal judgment gain, net of expenses (3,857 ) — (9,257 ) — Union incentives 1,400 — 7,071 — Adjusted operating income - non-GAAP $ 63,967 $ 37,570 $ 164,703 $ 102,280

32 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Non-GAAP Disclosure

Non-GAAP Financial Measure Disclosures (continued) (dollars in thousands)

FINANCIAL DATA (UNAUDITED) TRIUMPH GROUP, INC. AND SUBSIDIARIES

Cash provided by operations, is provided for consistency and comparability. We also use free cash flow as a key factor in planning for and consideration of strategic acquisitions and the repayment of debt. This measure should not be considered in isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to operating results presented in accordance with GAAP. The following table reconciles cash provided by operations to free cash flow.

Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018

Cash flow (provided by) used in operations $ 49,881 $ 4,063 $ 39,288 $ (193,116 ) Less: Capital expenditures (10,255 ) (10,570 ) (27,250 ) (34,824 ) Free cash flow (use) $ 39,626 $ (6,507 ) $ 12,038 $ (227,940 ) The Company provides cash flow guidance on non-GAAP basis adjusting capital expenditures from cash from operations to arrive at free cash flow. The following table reconciles cash from operations on a GAAP basis to free cash flow guidance.

FY20 Cash Flow Guidance Range

Cash flow from operations $40,000 - $100,000 Less: Capital expenditures $40,000 - $50,000 Free cash flow $0 - $50,000

33 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Non-GAAP Disclosure

The following includes a discussion of our consolidated and business segment results of operations. The Company’s diverse structure and customer base do not allow for precise comparisons of the impact of price and volume changes to our results. However, we have disclosed the significant variances between the respective periods. Non-GAAP Financial Measures We prepare and publicly release quarterly unaudited financial statements prepared in accordance with U.S. GAAP. In accordance with Securities and Exchange Commission (the "SEC") guidance on Compliance and Disclosure Interpretations, we also disclose and discuss certain non-GAAP financial measures in our public filings and earning releases. Currently, the non-GAAP financial measures that we disclose are Adjusted EBITDA, which is our income from continuing operations before interest, income taxes, amortization of acquired contract liabilities, legal settlements, depreciation and amortization; and Adjusted EBITDAP, which is Adjusted EBITDA, before pension. We disclose Adjusted EBITDA on a consolidated and Adjusted EBITDAP on a consolidated and a reportable segment basis in our earnings releases, investor conference calls and filings with the SEC. The non-GAAP financial measures that we use may not be comparable to similarly titled measures reported by other

• companies. Also, in the future, we may disclose different non-GAAP financial measures in order to help our investors more meaningfully evaluate and compare our future results of operations with our

previously reported results of operations. We view Adjusted EBITDA and Adjusted EBITDAP as operating performance measures and, as such, we believe that the U.S. GAAP financial measure most directly comparable to it is net income. In calculating Adjusted EBITDA and Adjusted EBITDAP, we exclude from net income (loss) the financial items that we believe should be separately identified to provide additional analysis of the financial components of the day-to-day operation of our business. We have outlined below the type and scope of these exclusions and the material limitations on the use of these non-GAAP financial measures as a result of these exclusions. Adjusted EBITDA and Adjusted EBITDAP are not measurements of financial performance under U.S. GAAP and should not be considered as a measure of liquidity, as an alternative to net income (loss), income from continuing operations, or as an indicator of any other measure of performance derived in accordance with U.S. GAAP. Investors and potential investors in

• ur securities should not rely on Adjusted EBITDA or Adjusted EBITDAP as a substitute for any U.S. GAAP financial measure, including net income (loss) or income from continuing operations. In addition,

we urge investors and potential investors in our securities to carefully review the reconciliation of Adjusted EBITDA and Adjusted EBITDAP to net income (loss) set forth below, in our earnings releases and in other filings with the SEC and to carefully review the U.S. GAAP financial information included as part of our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K that are filed with the SEC, as well as our quarterly earnings releases, and compare the U.S. GAAP financial information with our Adjusted EBITDA and Adjusted EBITDAP. Adjusted EBITDA and Adjusted EBITDAP are used by management to internally measure our operating and management performance and by investors as a supplemental financial measure to evaluate the performance of our business that, when viewed with our U.S. GAAP results and the accompanying reconciliation, we believe provides additional information that is useful to gain an understanding of the factors and trends affecting our business. We have spent more than 20 years expanding our product and service capabilities, partially through acquisitions of complementary businesses. Due to the expansion of our operations, which included acquisitions, our income from continuing operations has included significant charges for depreciation and amortization. Adjusted EBITDA and Adjusted EBITDAP exclude these charges and provides meaningful information about the operating performance of our business, apart from charges for depreciation and amortization. We believe the disclosure of Adjusted EBITDA and Adjusted EBITDAP helps investors meaningfully evaluate and compare our performance from quarter to quarter and from year to year. We also believe Adjusted EBITDA and Adjusted EBITDAP are measures of our ongoing operating performance because the isolation of non-cash charges, such as depreciation and amortization, and non-operating items, such as interest, income taxes, pension and other postretirement benefits, provides additional information about our cost structure and, over time, helps track our operating progress. In addition, investors, securities analysts and others have regularly relied on Adjusted EBITDA and Adjusted EBITDAP to provide financial measures by which to compare our operating performance against that of other companies in our industry.

34 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Non-GAAP Disclosure

Set forth below are descriptions of the financial items that have been excluded from our net income to calculate Adjusted EBITDA and Adjusted EBITDAP and the material limitations associated with using these non-GAAP financial measures as compared to net income (loss) or income from continuing operations:

• Divestitures may be useful for investors to consider because they reflect gains or losses from sale of operating units. We do not believe these earnings necessarily reflect the current and ongoing cash

earnings related to our operations.

• Legal settlements may be useful for investors to consider because it reflects gains or losses from disputes with third parties. We do not believe these earnings necessarily reflect the current and
• ngoing cash earnings related to our operations.
• Non-service defined benefit income from our pension and other postretirement benefit plans (inclusive of the adoption of ASU 2017-07) may be useful for investors to consider because they represent

the cost of post retirement benefits to plan participants, net of the assumption of returns on the plan's assets and are not indicative of the cash paid for such benefits. We do not believe these earnings (expenses) necessarily reflect the current and ongoing cash earnings related to our operations.

• Amortization of acquired contract liabilities may be useful for investors to consider because it represents the non-cash earnings on the fair value of off-market contracts acquired through acquisitions.

We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.

• Amortization expense (including intangible asset impairments) may be useful for investors to consider because it represents the estimated attrition of our acquired customer base and the diminishing

value of product rights and licenses. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our

• perating cost structure.
• Depreciation may be useful for investors to consider because it generally represents the wear and tear on our property and equipment used in our operations. We do not believe these charges

necessarily reflect the current and ongoing cash charges related to our operating cost structure.

• The amount of interest expense and other we incur may be useful for investors to consider and may result in current cash inflows or outflows. However, we do not consider the amount of interest

expense and other to be a representative component of the day-to-day operating performance of our business.

• Income tax expense may be useful for investors to consider because it generally represents the taxes which may be payable for the period and the change in deferred income taxes during the period

and may reduce the amount of funds otherwise available for use in our business. However, we do not consider the amount of income tax expense to be a representative component of the day-to-day

• perating performance of our business.

Management compensates for the above-described limitations of using non-GAAP measures only to supplement our U.S. GAAP results and to provide additional information that is useful to gain an understanding of the factors and trends affecting our business. The unaudited pro forma condensed financial data for the fiscal year ended March 31, 2019 assumes that the completed transition of the Global 7500 Program, as well as the combined effect of the fiscal 2019 divestitures all took place on April 1, 2018. Triumph’s unaudited consolidated statements of operations for the fiscal year ended March 31, 2019 have been adjusted to remove the financial results

• f the Global 7500 Program, as well as the combined financial results of the fiscal 2019 divestitures.

35 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020

Non-GAAP Disclosure

Fiscal year ended Fiscal year ended Fiscal year ended March 31, 2019 Completed March 31, 2019 Non-core March 31, 2019 ($ in millions) (Unaudited) Divestitures Pro Forma Operations Core Operations Integrated Systems 1,043 $

• $

1,043 $

• $

1,043 $ Aerospace Structures 2,062 529 1,533 1,214 319 Product Support 284 31 253

• 253

Eliminations (24)

• (24)
• (24)

Net Sales 3,365 560 2,805 1,214 1,591 Integrated Systems 158 $

• $

158 $

• $

158 $ Aerospace Structures (152) (92) (60) (96) 35 Product Support 43 2 42

• 42

Corporate (323) (235) (88)

• (88)

Operating Income (275) (325) 51 (96) 146 Integrated Systems 29 $

• $

29 $

• $

29 $ Aerospace Structures 111 18 94 82 11 Product Support 6 1 5

• 5

Corporate 3

• 3
• 3

Depreciation & Amortization 150 19 131 82 48 Integrated Systems (34) $

• $

(34) $

• $

(34) $ Aerospace Structures (33)

• (33)

(33)

• Amortization of acquired contract liabilities

(67)

• (67)

(33) (34) Other EBITDAP Adjustments Loss on divestitures (1) 235 $ 235 $

• $
• $
• $

Adoption of ASU 2017-07 (2) 87 18 70 70

• Integrated Systems

153 $

• $

153 $

• $

153 $ Aerospace Structures 13 (57) 70 23 47 Product Support 50 3 46

• 46

Corporate (85)

• (85)
• (85)

Adjusted EBITDAP 130 (53) 184 23 161 Cash flow used in (provided by) operations (174) $ (234) $ 60 $ (64) $ 124 $ Capital expenditures (47) (3) (44) (24) (20) Free cash flow (use) (221) $ (237) $ 16 $ (87) $ 104 $ Notes> All amounts are unaudited

(1) Adjustment included in Corporate results (2) Adjustment included in Aerospace Structures results