First Quarter FY 21 Earnings Conference Call Daniel J. Crowley, - PowerPoint PPT Presentation

First Quarter FY’ 21 Earnings Conference Call Daniel J. Crowley, President and Chief Executive Officer James F. McCabe Jr., Senior Vice President and Chief Financial Officer

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. In addition to these factors, widespread health developments, including the recent global coronavirus (COVID-19) and the responses there to (such as voluntary and in some cases, mandatory quarantines, as well as shut downs and other restrictions on travel and commercial, social and other activities) could adversely and materially affect, among other things, the economic and financial markets and labor resources of the countries in which we operate, our manufacturing and supply chain operations, commercial operations and sales force, administrative personnel, third-party service providers, business partners and customers and the demand for our products, which could result in a material adverse effect on our business, financial conditions and results of operations. For a more detailed discussion of these and other factors affecting us, see the risk factors described in “Item 1A. Risk Factors.” 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, 2020. TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 2

Q1 FY’21 Takeaways • Taking action to protect our people and company during historic pandemic • Though down year-over-year, Q1 in-line or better than anticipated • Triumph product, platform, customer and end market diversity provides stability • Aggressive cost reduction reflected in consistent gross margins • Structures asset sales enhance liquidity and focus • Reduced market volatility provides confidence in FY21 outlook Priorities: Protect Our People, Conserve Cash, Collaborate with Our Customers TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 3

Our Vision Our Mission Our Values Integrity As One Team, we enable the safety and We partner with our customers to prosperity of the world. triumph over their hardest aerospace, Continuous Improvement defense and industrial challenges and to Teamwork deliver value to our stakeholders. Innovation Act with Velocity TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 4

Q1 FY21 Results Drivers Q1 Head Winds Q1 Tail Winds ✓ Military Sales up 29% and Military Backlog up 15% YOY • COVID-19 Impacts X OEM Production Pauses (now over) ✓ Cargo MRO Demand up by 11% YTD X State of Baja Mandated Closures (reopened) ✓ Stable gross margins YOY X OEM Volume Reductions (rates stabilizing) X Excess Inventory ($200M in PO’s deferred) ✓ Cost reductions on track with over $120M in savings in FY21 • Sunsetting Programs Cash Use ✓ Executed Divestitures of G650 Wing Program and two X G280 (last wing delivered June 2020) Composites factories X B747-800 (8 shipsets remaining – finish in FY21) • Seasonality • Q1 typically lowest % volume for the year. • Working capital X Non-recurring Q1 cash drivers Headwinds Largely Subsiding – Tailwinds Support FY21 Directional Guidance TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 5

Triumph Diversity a Strength Proprietary Systems KC-46 & 767 Cargo Partners Military MRO C-17 Nacelles, Revers. F/A-18 Access. Drives T-700 Engine Control V-22 Pylon Conv. Act. CH-47 Fuel System AH-64 Thermal Sys. Largest TGI Program Stable MRO Volume Up 11% Up 30% YOY in Q1 Design-Build-MRO New Mil. Platforms Commercial OEM Next Gen Designs Military Upgrades Mil. Fuel Pumps Mil. Accessory Drives Mil. Thermal System Mil. Landing Gear Thermoplastics F15-EX, T-7A, MQ-25, FVL Customer Funded TSS Backlog 52% Mil. OEM Rates Firming Up Breadth of Missions, Customers, Platforms and Products TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 6

Executing Structures Strategic Review Q2 FY21 Program End / Completed Transactions Volume Divestitures Reducing Risk and Cash Use – Improving Liquidity – Driving to Future State TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 7

Market Conditions Snapshot Global Aircraft Tracked Daily COMMERCIAL • Load factors and utilization rising • TSA throughput rose 3.5x since 4 May • Flights up 113% since 4 May • Freighter fleet traffic up 20% since January • Freighter Utilization increased 10% MILITARY • DoD budgets up 3.6% in 2020 • Readiness driving Military MRO spending MRO • Triumph seeing MRO demand recovery in June TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 8

Growing Organically to Offset COVID-19 Impact Co Competit itiv ive Wins ns Cus Customer BU BU CH-47 UK MRO Boeing Defense TSS M1 Abrams Control Assembly Honeywell TSS A321XLR Service Panel Lever Assembly Diehl Aviation TSS Farley Nuclear Plant Westinghouse TSS F/A-18 Next Generation Jammer Northrop Grumman TSS Orion Spacecraft Heat Exchangers Collins Aerospace TSS T-7A Flight Test Integration Boeing Defense TAS Foll ollow-on Bus Busin iness Cus Customer BU BU E-2D Hawkeye EMIRS Systems Northrop Grumman TSS Bell 429 Cockpit Controls Bell Helicopter TSS F/A-18 Holdback Fitting, Probes, Door Act. Boeing Defense TSS Railway Sensors Alstom Transport TSS F-16 Fuel Oil Heat Exchanger US Air Force TSS Par artnership ips Cus Customer BU BU COVID-19 PPE Manufacturing Initiative Local Hospitals TSS Rolls-Royce 250 Distributorship VSE Aviation TSS Winning Across Markets, Customers and Platforms TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 9

Expanding Military Program Content Boeing F15-EX Boeing T-7A Trainer • • Legacy provider for F-15 + New EX content Substantial systems & structures content • • Six factories providing sole source engineered product 3DX Digital Thread live and in use − APU & gun drive motors • ‘Smart Tooling’ records hole sizes, torque values − Thermal packages • ‘Wearables’ provide mechanic heads -up displays − Valves • Recent Instrumentation win − Nose wheel steering TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 10

Consolidated Quarterly Results ($ in millions) FY’ 21 Q1 FY’ 20 Q1 Organic sales decreased only 29% including Net Sales $495 $731 planned reductions from our portfolio transformation and sunsetting programs, due in large part to the diversity of our markets Operating (Loss) Income (252) 36 and programs including a modest increase in military sales. Operating Margin (51)% 5% Adjusted operating income this quarter excludes $252 million non-cash impairment in Adjusted Operating Income* $15 $42 structures and $15 million of restructuring costs in the quarter necessary to adjust to Adjusted Operating Margin 3% 6% market demand. *See Appendix for Non-GAAP reconciliation Profitable on Adjusted Basis Through Product Mix and Cost Reduction TRIUMPH GROUP / Q1 FY ’21 / AUGUST 4, 2020 11