Investor Overview June 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, 2020. TRIUMPH GROUP / INVESTOR OVERVIEW 2
Company Overview Global leader in manufacturing aircraft NYSE: TGI systems and components, repair and Headquarters: Berwyn, PA overhaul, and aerospace structures. Incorporated: 1993 Two operating segments: Systems & Support Fiscal year ending: March 31 • Aerospace Structures • Market cap as of FY’20 revenues: 5/28/20: $2.9B $0.410B Our wide variety of capabilities and products helps our FY’20 adjusted Shares EPS: $2.71 customers triumph over the most complex challenges in outstanding: response to evolving industry requirements . Backlog as of 51.9M 3/31/20: $3.2B TRIUMPH GROUP / INVESTOR OVERVIEW 3
Business Unit Summary FY20 Revenue Aerospace Structures Systems & Support ~$1.4B ~$1.6B Consolidated Highlights Sales by Market (FY20) Adjusted Operating Income (FY20) $2.9B $209M Non-Aviation, 1% Regional, 5% Business, 17% Aerospace Structures, 23% Military, 20% Commercial, 57% Systems & Support, 77% TRIUMPH GROUP / INVESTOR OVERVIEW 4
Investment Considerations Portfolio transformation of Triumph is on track Broad range of design and manufacturing for completion at end of FY 21 , and cost capabilities across a diverse set of platforms for reductions position us to manage the current next generation commercial aircraft products and crisis and return to positive financial results 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 market share recovery in high margin Stable balance sheet and liquidity provide Systems and Support MRO financial flexibility to manage current crisis TRIUMPH GROUP / INVESTOR OVERVIEW 5
Systems & Support Superior design, development and support of proprietary components and systems as well as production of complex assemblies using external designs TRIUMPH GROUP / INVESTOR OVERVIEW 6
Systems & Support Profile Recent Near-Term Sales by End Market Longer-Term View Performance Expectations Commercial impacts: $1.4B Sales – Recovery to FY20 Production 30-35% Production/MRO Commercial Military Other lower levels 60%/40% MRO 45-55% lower Hold margin % Margin expansion End Market EBITDAP consistent ~16% EBITDAP Margin with Sales Profile through cost to prior targets of –Production/MRO 45%/55% reductions ~19% Stable Military End Market Reinvestment in Strategy to Recapture Aftermarket Cash Conservation operations and Solid Cash Generation R&D Diversity of Offerings Across Various Platforms and End Markets TRIUMPH GROUP / INVESTOR OVERVIEW 7
Systems & Support Overview Products & Services Business Overview Major Customers Sales by Market Non-Aviation, 3% Regional, 3% Boeing • Integrated solutions, $1.4B Revenue (FY20) Business, 5% including design, Sikorsky • 17 Locations development, and Airbus • support of components, Lockheed Martin • systems and sub-systems Military, 33% Commercial, 56% Excludes Intercompany Sales and Contract Liability Amortization Capabilities Interior Actuation Gear Electronics & Mechanical Structural Component Accessory Component Refurbishment & Controls Systems Controls Solutions Repair Repair TRIUMPH GROUP / INVESTOR OVERVIEW 8
Aerospace Structures Extensive capabilities to engineer complex composite aerostructures TRIUMPH GROUP / INVESTOR OVERVIEW 9
Aerospace Structures Profile Recent Near-Term Sales by End Market Longer-Term View Performance Expectations $1.6B Sales – declining Commercial impacts: Right-size operations with divestitures and Commercial Business Jet Military Production 30-35% for future state sunsetting programs lower Sunsetting programs complete in FY 21; including 30% stepdown from FY 20 levels ~7% EBITDAP Margin – Complete work Margin expansion to • Accelerated transfer of G280 (July) eliminated prior transfers and exit of all prior targets of ~10% volatility loss making programs Stable Military End Market Stable 767 program post transfer Cash using programs & Hold margin % through Complete Exit of Large advance liquidations; cost reductions Structures Operations Transferring G650 Wing Kit back to offset by stable core GAC expected by end of Q1 Reducing Cost Structure to Improve Efficiency and Accelerate Exits TRIUMPH GROUP / INVESTOR OVERVIEW 10
Aerospace Structures Overview Products & Services Business Overview Major Customers Sales by Market Regional, 6% Boeing • TAS provides fully integrated, $1.5B Revenue (FY’20) turn-key composite and Gulfstream • 15 Locations Business, 28% metallic major assemblies, and Airbus • interior system solutions Northrup Grumman • employing the latest product development and Military, 8% Commercial, 58% manufacturing tools, processes and software to its diverse portfolio of commercial and military customers. Excludes Intercompany Sales and Contract Liability Amortization Capabilities Aircraft Fuselage Insulation Nacelle Composites Ducting Empennage Fuselage Wings Panels Products Blankets TRIUMPH GROUP / INVESTOR OVERVIEW 11
Top Programs in Backlog Aerospace Structures Systems & Support Boeing 767 Airbus A320, A321 Gulfstream G650 Boeing 737 Boeing 787 Boeing 787 Boeing 737 Boeing IDS V-22 Boeing 747 Boeing AH-64 Boeing 777 Sikorsky UH60 Airbus A350 Boeing IDS CH-47 Lockheed Martin C-130 Boeing IDS V-22 Boeing F-18 NG RQ-4 Global Hawk Sikorsky CH53 Gulfstream G280 Represents 54% of Represents 86% of Systems & Support backlog Aerospace Structures backlog TRIUMPH GROUP / INVESTOR OVERVIEW 12
Factors Supporting Aviation Recovery Ticket Volume Parked Aircraft Load Factors Utilization Up 8% since 4/12 -1,800 since 4/24 Up 20% last 30d Up 100% in US last 30d Defense OEM Production US Airline Liquidity Daily Flights Up 20% last 30d +$40B Since Feb 26th Improved payments Confirmed OEM Rates Early Signs of Recovery Support Forecast Confidence TRIUMPH GROUP / INVESTOR OVERVIEW 13 Analysis above through May 28, 2020
Triumph Platform Diversity KC-46 & 767 Stable Cargo Carriers MRO Thermal Systems Military MRO C-17 Nacelles, TR’s • F18 AMAD’s • T-700 Engine Control • V-22 PCA’s • CH-47 Fuel System • AH-64 Thermal Sys. • Single Largest Program Strong Key Segment Accelerating 100% IP Driven New Mil. Platforms New Com. Platforms Next Gen Designs Military Upgrades Mil. Fuel Pumps • Mil. AMAD • Mil. Thermal System • Mil. Landing Gear • Thermoplastics • Active Engagements CTS-800 T-7A, MQ-25 and FVL 777X and A321XLR Stable Base, Positioned for Growth TRIUMPH GROUP / INVESTOR OVERVIEW 14
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