Aar Corp. · NYSE:AIR

Aar — Canaccord Genuity Global Growth Conference 2020

17 slides from Aar's conference presentation, Aug 13, 2020

1. Slide 1: Canaccord Genuity Global Growth Conference

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 0 AAR CORP. Canaccord Genuity Global Growth Conference August 13, 2020

2. Slide 2: Forward-Looking Statements

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 1 Forward - Looking Statements This presentation contains certain statements relating to future results, which are forward - looking statements as that term is defined in the Private Securities Litigation Reform Act of 1

3. Slide 3: Leading Independent Provider of Aviation Aftermarket Services

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 2 Leading Independent Provider of Aviation Aftermarket Services Leading provider of aviation services to commercial and defense/government markets NYSE: AIR $ 2B revenue for FY20 65 years as a market leader in aviation s

4. Slide 4: Our Values

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 3 Our Values

5. Slide 5: Our Solutions

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 4 Our Solutions 62% Commercial and 38% Government in FY20 Integrated Solutions • Flight hour - based component support • Contractor logistics support (CLS) • Performance - based logistics (PBL) • Distribute used servicea

6. Slide 6: COVID-19 Perspective: Actions Taken and Opportunities

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 5 • Consolidated footprint to optimize cost base and preferred customer support • Exited underperforming product lines and contracts • Reduced headcount • Eliminated non - essential spend • Emphasizing cargo end - market

7. Slide 7: Corporate Strategy

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 6 Corporate Strategy x Entrepreneurial x Nimble x Portfolio Drive connected businesses that reinforce collective growth prospects Expand margins through differentiated capabilities / i ntellectual property Leverage data

8. Slide 8: Connected Businesses Approach

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 7 Connected Businesses Approach Parts Supply: OEM and Used Material • Transactional data collection • Exclusive relationships with OEMs and customers • Inventory pooling with programs Repair & Engineering • Strategic rel

9. Slide 9: Global Reach and Expertise

   AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 8 Global Reach and Expertise Over 60 locations around the world North America HQ & warehouse near O’Hare; airframe MRO network; component and landing gear repair; manufacturing services UK Regional sales; Airinmar ® comp

10. Slide 10: Highly Diversified Customer Base with Longstanding Relationships

    AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 9 Customer Type Examples Airlines Cargo Airlines Regional Airlines Government International Narcotics & Law Enforcement United Kingdom Ministry of Defense United States Air Force Royal Netherlands Air Force Japanese Mini

11. Slide 11: Selected Digital Offerings

    AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 10 ~$35M of Sales from Digital Initiatives P AAR TS TM Store E - commerce portal AIR volution TM Parts repair management software • > 1 million parts available online • Factory - new parts from > 30 OEMs • Overhauled, se

12. Slide 12: Record Performance Through First Three Quarters of FY20; Q4 Impacted by COVID

    AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 11 Record Performance Through First Three Quarters of FY20; Q4 Impacted by COVID Financial Performance Adjusted Diluted EPS from Continuing Operations Revenue ($M) Net Debt / Adjusted EBITDA Adjusted EBITDA ($M) and Marg

13. Slide 13: Appendix

    AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 12 Appendix

14. Slide 14: Non-GAAP Financial Measures

    AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 13 Non - GAAP Financial Measures Adjusted diluted earnings per share from continuing operations, adjusted EBITDA and net debt are “non - GAAP financial measures” as defined in Regulation G of the Securities Exchange Act

15. Slide 15: Non-GAAP Financial Measures: Adjusted EBITDA

    AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 14 Non - GAAP Financial Measures Adjusted EBITDA ($ in millions) FY17 FY18 FY19 FY20 Net income $56.5 $15.6 $7.5 $4.4 (Income) loss from discontinued operations (4.5) 58.1 76.6 20.4 Income tax expense 25.1 3.5 4.9 5.6 Ot

16. Slide 16: Non-GAAP Financial Measures: Adjusted Diluted EPS From Continuing Operations

    AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 15 Non - GAAP Financial Measures Adjusted Diluted EPS From Continuing Operations FY17 FY18 FY19 FY20 Diluted earnings per share from continuing operations $1.51 $2.11 $2.40 $0.71 Deferred tax re-measurement from the Tax

17. Slide 17: Non-GAAP Financial Measures: Net Debt / Adjusted EBITDA

    AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 16 Non - GAAP Financial Measures Net Debt / Adjusted EBITDA ($ in millions) FY17 FY18 FY19 FY20 Total debt $156.2 $178.9 $142.9 $602.0 Less: cash and cash equivalents (10.3) (31.1) (21.3) (404.7) Net debt $145.9 $147.8 $

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