Slide 1: Twin Disc, Incorporated
Slide 2: Safe Harbor Statement
Twin Disc, Incorporated Safe Harbor Statement This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations that are based on assumptions that are su
Slide 3: Corporate Profile
Twin Disc, Incorporated Corporate Profile TWIN designs, manufactures and sells equipment and control systems to the pleasure craft, commercial & military segments of the marine market and the heavy-duty off-highway, military and industrial markets August 15, 2007 3
Slide 4: Corporate Profile
‘win Disc, Incorporated Corporate Profile TWIN designs, manufactures and sells equipment and control systems to the pleasure craft, commercial & military segments of the marine market and the heavy-duty off-highway, military and industrial markets August 15, 2007 4
Slide 5: Corporate Profile
Corporate Profile TWIN designs, manufactures and sells equipment and control systems to the pleasure craft, commercial & military segments of the marine market and the heavy-duty off-highway, military and industrial markets August 15, 2007 &
Slide 6: Corporate Profile
Twin((Disc.) Twin Disc. Incorporated Corporate Profile 4 : Surface Drives, Peete Water atts Bow Thrusters August 15, 2007 6
Slide 7: Corporate Profile
Twin Disc, Incorporated Corporate Profile TWIN designs, manufactures and sells equipment and control systems to the pleasure craft, commercial & military segments of the marine market and the heavy-duty off-highway, military and industrial markets August 15, 2007 7
Slide 8: Corporate Profile
vin Disc, Incorporated Corporate Profile TWIN designs, manufactures and sells equipment and control systems to the pleasure craft, commercial & military segments of the marine market and the heavy-duty off-highway, military and industrial markets August 15, 2007 8
Slide 9: Corporate Profile
‘SC, Twin Dise, Incorporated Corporate Profile TWIN designs, manufactures and sells equipment and control systems to the pleasure craft, commercial & military segments of the marine market and the heavy-duty off-highway, military and industrial markets August 15, 2007 9
Slide 10: Corporate Profile: Global Operations and Distribution
Twin(isc,) Twin Disc, Incorporated Corporate Profile « We are a global company with operations in the U.S., Italy, Belgium, Switzerland and Japan and have a * Manufacturing @ TDI Distributors world-wide @ Independent Distributors distributor network @ Service Dealers August 15, 2007 10
Slide 11: Fiscal Year 2007 Highlights
(Twwn(Disc.)) Twin Disc, Incorporated Fiscal Year 2007 Highlights *« Record Sales >> $317 million — 30% revenue growth; 15% after BCS — Strong demand from oilfield, military and marine markets * Gross margin >> 32.4% (+180 bps) ¢ Net Earnings >> $22 million (+54%) « FY end Backlog >> $110 million re
Slide 12: Net Sales & Net Earnings
TWIN((DISC.) Twin Disc, Incorporated Net Sales & Net Earnings $ millions $ millions $350 sa 82 $300 ~~) $20 $250 $249 ~ 1 $15 $200 +—st80 $486 7 - $150 | iy 8 $100 a 33 $50 “ = $0 go -__1_, $5 FY03 FY04 FY05 FY06 FY07 Net Sales -* Net Earnings August 15, 2007 t2
Slide 13: EBITDA
Twin Disc, Incorporated EBITDA (See Appendices | & II for note on non-GAAP Financial Disclosures and a reconciliation of net earnings to EBITDA) $ millions % sales $50 16% 14.0% 12. 5% 7 14% $40 1 42% + 10% $30 PUS% Tay 7 al + 8% $20 + 6% $10 + 2.4% + 2% $0 | 0% FY03 FY04 FY05 FY06 FY07 ‘August 18,
Slide 14: Impact of Significant Items
Impact of Significant Items (Fiscal Year 2007) Diluted Diluted Qa EPS Impact Full Year EPS Impact FY 2007, as reported $ 5,001 $ 21,852 EPS $ 0.83 $ 3.68 Significant Items (after-tax impact): Intangible Asset Write-off 366 $ 0.06 366 Restructuring 1,751 $ 0.29 1,751 Stock based comp 740 $ 0.12 1,347
Slide 15: Looking Ahead
Twin((Disc.) Twin Dise, Incorporated Looking Ahead
Slide 16: Corporate Six Month Backlog
fwn(psc ‘win Disc, Incorporated Corporate Six Month Backlog (Orders to be shipped in the next 6 months) $ millions 1207 100, 80 60; 40; 20 0 $410 ll litrneaneallll I LTT JSDMJSDMJSDMJSDMJSDMJSDMJSDMJSODMJ FY99 FYO0O FY01 -FY02 -FY03 FY04 -FY05 FY06 FYO7 August 15, 2007 16
Slide 17: Fiscal Year 2008 Outlook
Twin(isc,) Twin Disc, Incorporated Fiscal Year 2008 Outlook « FY 2008 will be another good year « Key markets will remain strong — Oilfield demand continues at strong levels — Activity in crew & supply boats is solid — Demand & inquiries for military transmissions remain strong — Outlook for mega-ya
Slide 18: Fiscal Year 2008 Outlook
Twin(isc,) Twin Disc, Incorporated Fiscal Year 2008 Outlook * Technology differentiation/new products * Opportunity for operating leverage continues — Expanding global outsourcing — Investing in core competencies « Enhanced stock repurchase program August 15, 2007 18
Slide 19: Appendices
Twin(bisc.) Twin Disc, Incorporated Appendices
Slide 20: Appendix I: Non-GAAP Financial Disclosures
(wwn(isc.) Twin Dise, Incorporated Appendix | Non-GAAP Financial Disclosures Non-GAAP Financial Disclosures Financial information excluding the impact of certain significant items in this presentation are not measures that are defined in U.S. Generally Accepted Accounting Principles (“GAAP”). These
Slide 21: Appendix II: Reconciliation of Net Earnings to EBITDA
TWIN(DISC.), Twin Disc, Incorporated Appendix II Reconciliation of Net Earnings to EBITDA in $ thousands, except % data 2003 2004 2005 2006 2007 Net Earnings $ (2,394) $ 5643 $ 6910 $ 14.453 $ 21,852 Income Taxes (300) 4,964 2,485 8,470 12,273 Interest Expense 1,323 1,078 1,134 1,718 3,154 Depreciat
Slide 22: Twin Disc, Incorporated
‘win Disc, Incorporated