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 availa bility 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. TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 2
Company Overview Global leader in manufacturing aircraft NYSE: TGI systems and components, repair and Headquarters: Berwyn, PA overhaul, and aerospace structures. Incorporated: 1993 Three operating segments: • Fiscal year ending: March 31 Integrated Systems • Product Support • Aerospace Structures Market cap as of FY’19 revenues: 5/10/19: $3.4B $1.120B FY’19 adjusted Our wide variety of capabilities and products helps our Shares EPS: $2.49 customers triumph over the most complex challenges in outstanding: Backlog as of response to evolving industry requirements . 49.8M 3/31/19: $3.8B TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 3
Business Unit Summary FY19 Revenue Aerospace Integrated Product Structures Support Systems ~$284M ~$2.1B* ~$1.0B * Includes Interiors Business ~$320M in FY19 Sales Consolidated Highlights Sales by Market (FY19) Adjusted Operating Income (FY19) $3.4B $166M Non-Aviation, 2% Regional, 2% Business, 23% Product Support, 18% Aerospace Structures, 14% Commercial, 53% Military, 20% Integrated Systems, 67% Integrated Systems and Product Support will be reported on combined basis as Systems & Support beginning March 2020 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 4
Investment Considerations Portfolio transformation of Triumph is largely Broad range of design and manufacturing complete , and positive financial results will follow capabilities for next generation commercial in this fiscal year. aircraft products and mission critical military applications Well positioned on large volume mature Sole source supplier on numerous aircraft platforms, new build derivatives and high growth platforms military development programs Poised for growth in high margin Integrated Improved balance sheet strength and liquidity Systems and Product Support segments provide financial flexibility to fund future growth TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 5
Res esilie ient, strong end end market t fun fundamentals Air Travel is Resilient and Growing Oil Crisis Gulf Crisis Asian Crisis 9/11 SARS Financial Crisis 18.0 Forecast 16.0 14.0 World Annual Traffic x2 (PPKs in trillions) 12.0 10.0 8.0 x2 6.0 x2 4.0 2.0 0.0 1980 1985 1990 1995 2000 2005 2010 2015 2020E 2025E 2030E 2035E RPKs Trend Line Boeing and Airbus Have Amassed Record Backlogs… …Creating Significant Visibility and Continued Growth 15,000 Boeing and Airbus Backlogs Boeing and Airbus Deliveries 1,500 10,000 1,000 5,000 500 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E2020E Boeing Airbus Airbus Boeing Mult ultiple secu cular r dr drivers create a favorable back backdrop for or con continued growth Source: ICAO, HIS Economics, Sabre, Boeing Current Market Outlook (2016 – 2035) and Wall Street Research TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 6
Div Diverse content t on on Key y Programs Overview of key programs Revenue breakdown (FY19) By segment Program Key products • Landing gear extend / retreat system Boeing 787 • Longerons, stringers, shear ties, frame assemblies • Landing gear, actuators and cowl opening systems • Tail section, wing center section Product Boeing 767 / Tanker • Keel beams, acoustic panels, various nacelle components Support • Aft body fuselage panels 8% • Hydraulic valves and actuators • Boeing 737 Mechanical system components • Engine gearboxes • Wings • Integrated G500 / 600 / 650 Wing stringers and spars • Systems Horizontal stabilizer • 31% Hydraulic valves and actuators, power transfer units Aerospace • A320 Sharklet wing reinforcement kits Structures • Engine gearboxes • 61% Pylon conversion actuators • Nose wheel steering • V-22 Osprey Empennage • Ramp and ramp door • Side panels, sponsons and landing gear doors • Landing gear valves A330, A340 • Wing components • A350 Thermal Insulation Systems and Rudder Components • Boeing 777 Inboard/Outboard Flaps, Ailerons and Spoilers Note: Segment breakdown excludes elimination of intersegment sales • F-35 Engine mounts, bulkheads, longerons and wing ribs Well pos positi tioned on on large volu olume, ramping, g, ne new de derivatives and nd hi high gh growth th mi military pl platforms TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 7
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 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 8
Integrated Systems Overview Products & Services Business Overview Major Customers Sales by Market Regional, 3% Non-Aviation, 3% • Boeing Integrated solutions, $1.0B Revenue (FY19) Business, 6% including design, • GE 17 Locations development, and • Airbus support of components, • Rolls Royce systems and sub-systems Military, 36% Commercial, 52% Excludes Intercompany Sales and Contract Liability Amortization Capabilities Gear Actuation Mechanical Electronics Fluid Power Systems & Controls Solutions & Controls & Actuation Integrated Systems and Product Support will be reported on combined basis as Systems & Support beginning March 2020 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 9
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 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 10
Product Support Overview Sales by Market Products & Services Business Overview Major Customers Regional, 5% Business, 1% • L3 Provides total life cycle $284M Revenue (FY’19) Military, 16% solutions for commercial, • Boeing 6 Locations regional and military • GE aircraft. Offerings include • Delta full post-delivery value chain services that Commercial, 78% simplify the MRO supply chain Excludes Intercompany Sales and Contract Liability Amortization Capabilities Interior Structural Accessory Refurbishment Component Repair Component Repair Integrated Systems and Product Support will be reported on combined basis as Systems & Support beginning March 2020 TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 11
Aerospace Structures Extensive capabilities to engineer complex composite aerostructures TRIUMPH GROUP / INVESTOR OVERVIEW / FEBRUARY 2020 12
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