Slide 1: 3)
3)
Slide 2: Safe Harbor Statement
¥SC.) Twin Dis, 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 a
Slide 3: Corporate Profile
Corporate Profile « We are a global company with operations in the U.S., Italy, Belgium, Switzerland and Japan and have a % ~Manufacturing F @ TDI Distributors world-wide @ Independent Distributors distributor network @ Service Dealers August 18, 2008 3
Slide 4: 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 18, 2008 4
Slide 5: 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 18, 2008. 5
Slide 6: 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 18, 2008 6
Slide 7: Corporate Profile: Marine Transmissions, Propulsion & Boat Management Systems
incorporated Corporate Profile Marine Transmissions, Propulsion & Boat Management Systems QuickShift® mend Gangilays f= Sr Trim Tabs, Stern Thrusters = urface Drives, Propellers, Water Jets, Drivelines Bow Thrusters August 18, 2008 7
Slide 8: 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 18, 2008 8
Slide 9: TWIN designs, manufactures and sells equipment
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 18, 2008 9
Slide 10: Corporate Profile
, Qunn(bisc) 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 18, 2008 10
Slide 11: Technology Differentiation
Twin((disc,) Twin Dise, Incorporated Technology Differentiation « Land-Based « Marine — 8500 Series — QuickShift® — “Pump & Roll” — Dynamic Positioning — “Legacy” Contracts — Rolla CFD — Electronic Control — Electronic/Hydraulic Systems Boat Management Systems August 18, 2008 1
Slide 12: Managing Our Cost Structure
aun(bsc.) ‘Twin Disc, Incorporated au Managing Our Cost Structure Investing in Core Competencies | i s August 18, 2008 12
Slide 13: Managing Our Cost Structure: Global Sourcing
Managing Our Cost Structure Global Sourcing Low Cost | Sourcing Offices August 18, 2008 13
Slide 14: FY 2008 Financial Highlights
Twin Disc, Incorporated FY 2008 Financial Highlights Major Markets Remained Strong — Continued growth from mega-yacht and commercial marine markets — Strong demand for land based transmission products for the Airport Rescue and Fire Fighting (ARFF) and military markets — Experienced cyclical softeni
Slide 15: Net Sales & Net Earnings
Twin Disc, Incorporated Net Sales & Net Earnings epee (Fiscal Year) _ page $300 L $243 ay $25 $250 L $90 $200 r $15 $150 $100 y #40 $50 + $5 $0 t t t t $0 FY04 FY05 FY06 FY07 FY08 Net Sales -@-Net Earnings August 18, 2008 15
Slide 16: EBITDA
in Disc, Incorporated EBITDA (See Appendices | & II for note on non-GAAP Financial Disclosures and a # millions reconciliation of net earnings to EBITDA) %h sales $50 14.0% 13.97% 16% 12.5% as + 14% 40 ; = z $46.1 $ + 12% $30 FI3% 7 3 ee . / $30.5 + gy 7.4% . $20 + 6% $17.4 $16.2 + 4% $10 ° + 2% $0
Slide 17: Looking Ahead
Looking Ahead
Slide 18: Corporate Six Month Backlog
Gwend(onc) Twin Disc, Incorporated Corporate Six Month Backlog (Orders to be shipped in the next 6 months) $ millions 140 $121 120 100 80 60 FY04 FY05 FY06 FY07 FY08 August 18, 2008 13
Slide 19: Fiscal Year 2009 Outlook
) Twin Dise, Incorporated Fiscal Year 2009 Outlook * Cautiously optimistic * Key markets will remain strong — Commercial marine and mega yacht, defense and airport firefighting and rescue markets to continue to be strong * Seeing signs of a turnaround in demand from customers in the industrial marke
Slide 20: Fiscal Year 2009 Outlook
Twin((Disc,) Twin Dise, Incorporated Fiscal Year 2009 Outlook Technology differentiation/new products Opportunity for operating leverage continues — Increasing volume — Expanding global outsourcing — Investing in core competencies Active Acquisition Program Board authorized repurchase of up to an ad
Slide 21: win Disc, Incorp
win Disc, Incorp
Slide 22: Appendices
Appendices
Slide 23: Appendix I: Non-GAAP Financial Disclosures
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 items are m
Slide 24: Appendix II: Reconciliation of Net Earnings to EBITDA
) Twin Dise, Incorporated Appendix II Reconciliation of Net Earnings to EBITDA in $ thousands, except % data 2003 2004 2005 2006 2007 2008 Net Earnings $ (2,394) $ 5,643 $ 6910 $ 14,453 $ 21,852 $ 24,252 Income Taxes (300) 4,964 2,485 8,470 12,273 10,904 Interest Expense 1,323 1,078 1,134 1,718 3,15
Slide 25: Appendix III: Fiscal Year Condensed Consolidated Statements of Operations
Twin Dise, Incorporated Appendix III Fiscal Year Condensed Consolidated Statements of Operations ($ thousands, per Form 10-K) 2008 2007 2006 2005 Sales $ 331,694 $ 317,200 $ 243,287 $ 218,472 Gross Profit 104,868 102,909 74,390 57,420 31.6% 32.4% 30.6% 26.3% MEA Expense 66,349 63,267 49,606 44,666 2
Slide 26: Appendix IV: 4th Fiscal Quarter Condensed Statements of Operations
Twin(DIsc.) Twin Dise, Incorporated Appendix IV 4th Fiscal Quarter Condensed Consolidated Statements of Operations ($ thousands, unaudited) 2008 2007 2006 2005 Sales $ 90,349 $ 90,782 $ 72,534 §$ 61,923 Gross Profit 29,045 30,022 24,057 17,155 32.1% 33.1% 33.2% 27.7% MEA Expense 19,308 19,174 14,816
Slide 27: Appendix V: Marine Systems
win Disc, Incorporated Appendix V: Marine Systems * Target Markets: Pleasure, commercial & military boats 30’ to 250’ + Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems * Channels: Engine OEMs & dealers & boat builders * Customers: CAT, Cummins, MAN, MTU, Volvo / A
Slide 28: Appendix VI: Transmission Systems
Appendix VI: Transmission Systems Transmissions Torque Converters and all- vehicles Enerflo, August 18, 2008 Electronic Controls + Target Market: Off-highway errain specialty + Products: Niche products - 400 to 3,000 HP + Channel: OEM vehicle mfrs. * Customers: BAE, Oshkosh, Tatra / BJ Services, Cis
Slide 29: Appendix VII: Industrial Products
‘win Disc, Incorporated Appendix VII: Industrial Products Clutches PTOs TorqueConverters Variable Speed & Starting Drives * Target Market: Heavy duty industrial disconnect applIns + Products: Mech & hyd clutches, PTOs & pump mount drives - 100 - 2,500 HP * Channels: Distribution & OEMs + Customers:
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