AAR Corp. · NYSE:AIR

AAR — Baird 2021 Global Industrial Conference

15 slides from AAR's conference presentation, Nov 9, 2021

1. Slide 1: Baird 2021 Global Industrial Conference

   Baird 2021 Global Industrial Conference November 9, 2021 AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 0

2. Slide 2: Forward-looking statements

   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 1995 which reflect management’s expectations about future conditions. Forward-looking s

3. Slide 3: AAR: Aviation aftermarket expert since 1955

   AAR: Aviation aftermarket expert since 1955 NYSE: AIR $1.7B revenue Leading provider of aviation services 65+ years as a market to commercial and leader in aviation support defense/government markets Our employees operate at 60+ sites around the world Close-to-the-customer business model AAR CORP. A

4. Slide 4: AAR's solutions

   AAR’s solutions Aviation Services Expeditionary Services ($1.6B FY21 Sales) ($99M FY21 Sales) Parts Supply MRO Services Integrated Solutions Mobility Systems • Serviceable and OEM factory- • Airframe • Total fleet services • Air cargo containers (ISU®) new parts and pallets • Landing gear • Flight-h

5. Slide 5: Connected businesses approach

   Connected businesses approach Parts Supply: OEM and used material • Transactional data collection • Exclusive relationships with OEMs and customers Integrated Solutions • Inventory pooling with programs • Strategic relationships with airlines, MROs, OEMs, and repair vendors • Fuel parts supply busin

6. Slide 6: Global expertise, emerging market reach

   Global expertise, emerging market reach Customers in over 120 countries North America UK Europe Middle East China Singapore HQ & warehouse near Integrated Solutions – Component Repair in Warehouse and sales Sales support in Shanghai Regional sales office O’Hare Airport; MRO Commercial and Parts Supp

7. Slide 7: Highly diversified customer base with longstanding relationships

   Highly diversified customer base with longstanding relationships Airlines Cargo airlines OEMs Government International Narcotics & Law Enforcement (INL) United Kingdom Ministry of Defence (UK MoD) United States Air Force (USAF) United States Navy (USN) Regional airlines United States Army (USA) Roya

8. Slide 8: Growth strategy

   Growth strategy Strategic initiatives Use strong Technology balance sheet and digital to grow Parts Proprietary PAARTSSM Cost and parts & repair Store, paperless portfolio actions hangar, drone with recovery Selected MRO inspections Selected PMA expansion parts and DER repair capability Invest in US

9. Slide 9: Update on recovery

   Update on recovery Actions taken Opportunities Financial position Quarter Ended • Consolidated footprint to optimize • Leveraging new cost structure to Feb '20 May '20 Aug '20 Nov '20 Feb '21 May '21 Aug '21 ($M) Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 cost base and preferred customer drive

10. Slide 10: Summary

    Summary • Unique combination of integrated aviation aftermarket offerings • Environment presents opportunity to accelerate execution of strategy  Be the Leading Independent Aviation Services Provider Globally • Using crisis as opportunity to take action that accelerates strategy execution – Leverag

11. Slide 11: Appendix

    Appendix AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 10

12. Slide 12: Non-GAAP financial measures

    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 of 1934, as amended (the “Exchange Act”). We believe these non-GAAP financial measures

13. Slide 13: Non-GAAP financial measures

    Non-GAAP financial measures Adjusted EBITDA 12 Months Ended ($ in millions) FY19 FY20 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q3 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q1 FY22 Net income $7.5 $4.4 $35.8 $2.3 ($16.5) ($14.5) $8.2 $28.1 $14.0 $11.5 $43.7 ($14.5) ($20.5) $5.3 $61.8 (Income)

14. Slide 14: Non-GAAP financial measures

    Non-GAAP financial measures Adjusted sales and adjusted EBITDA margin ($ in millions) Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Sales $553.1 $416.5 $400.8 $403.6 $410.3 $437.6 $455.1 Contract termination/restructuring & loss provision, net 9.8 7.5 1.9 (2.3) 1.5 (2.4) 1.0 Customer bankr

15. Slide 15: Non-GAAP financial measures

    Non-GAAP financial measures Net debt / adjusted EBITDA ($ in millions) Q3 FY20 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Total debt $208.1 $602.0 $257.0 $222.1 $207.6 $135.2 $129.0 Less: cash and cash equivalents (37.0) (404.7) (107.7) (110.0) (99.2) (51.8) (48.8) Net debt $171.1 $197.3 $149.3 $1

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