Slide 1: Twin Disc, Inc. Investor Presentation
TWIN DISC, INC Investor Presentation
Slide 2: Safe Harbor Statement
‘Sale Harbor Statement ‘Ths presentation contains statements thet are fonwardbooking wthin the meaning of Section 1E of the Securties Exchange Ad of 1534, as amended. The words ‘artiopates,” “baieves, “intends,” “estimates,” and “expects, or similar anticipatory expressions, usualy identify fonvardl
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS Frwn(oise) Aleader in global power transmission technology with an increasingly diversified IP-protected portfolio Well-positioned to benefit from tailwinds in defense markets and hybrid transmissions supported by robust backlog Margin enhancement and operational initiatives dr
Slide 4: Overview
OVERVIEW
Slide 5: Twin Disc Snapshot
TWIN DISC SNAPSHOT Frwn(oise) FY25 Revenue by Product Group FY25 Revenue by Geography ctr ase tepaere ey {apa Raed Sere ha Pot _ en Key Market Differentiators D> Acentury of expertise putting horsepower to work and delivering world-class solutions to our global customer base D> Leveraging our leader
Slide 6: Twin Disc Evolution
TWIN DISC EVOLUTION Frwn(oise) om Que gm Om ‘win Dic was Hydraule marine Aequstion of Acquistion of 8S |} Aequstion of katsa Oy funded transmission Roctlord and nd Kabat Revoltionzed tractor Tecmocrive | strategie focus on hytrid cites that became flectetecelogy {hestancard in oneal and fuleyem gret
Slide 7: Product Group Overview
PRODUCT GROUP OVERVIEW Marine & Propulsion Land-Based systems Transmission industrial Diese! powered planing & Diesel powered off-highway and all- Heavy duty industrial disconnect displacement vessels terrain specialty vehicles ‘applications Positioned to capitalize on paradigm + Increasing global d
Slide 8: Capturing Robust Defense Market
CAPTURING ROBUST DEFENSE MARKET DEMA Robust TWIN Defense Activity Well Positioned +13% YoY Increase in 2026 US Defense Spending") +150% YoY Increase in NATO Defense Spend Targetas percentage of GDP) WITH RUNWAY FOR GROWTH Select Defense Products Major Geographies => Delivering Results Defense as a ~
Slide 9: Marine & Propulsion: Twin Disc's Unique Position
in Disc's Unique Position "= Veth & Kobelt acquisition provided complementary products and powerful new technologies + In-house hybrid and electrification expertise + Expansion into new markets and geographies * Strong Veth and Rolla partnership encourages innovation and expands growth opportunities
Slide 10: Land-Based Transmission
LAND-BASED TRANSMISSION i 1 1 Katsa acquisition provided complementary 1 | products and powerful new technologies 1 {1+ Over a century of experience in power transmission ! 1 product design and innovation t L t t 1 1 ' t + Strong North American customer base provides a Solid foundation for growth +
Slide 11: Industrial
INDUSTRIAL i Twin Disc’s Unique Position + Kobelt acquisition provided geographic expansion, complementary products and powerful new technologies + Bestin-class quality Proprietary technology in controls, hybrid, EV + In-house engineering capabilities + Accelerating activity with new customers and l
Slide 12: Strategy
STRATEGY
Slide 13: Long-Term Strategy
LONG-TERM STRATEGY * & & Leading Hybrid/Electric solution provider for niche marine and land-based applications Continued expansion of acqui and geographies Rationalize global footprint for efficiency and customer response Increased focus on controls and system integration rather than individual com
Slide 14: Hybrid Electric Solutions
HYBRID ELECTRIC SOLUTIONS Cros) Transforming the global Off-Highway, Industrial, and Marine markets with our sustainable Hybrid and Electric powertrains, empowering customers to meet business goals as well as regulatory requirements + Expertise in drive train technology provides edge in hybrid techn
Slide 15: Case Study - Innovative Solutions for Hybrid Marine Vessel
CASE STUDY - INNOVATIVE SOLUTIONS FOR HYBRID MARINE VESSEL Challenge Application Example + Affordability of hybridization for * Total ownership of hybrid pleasure craft users propulsion system 48-Foot Riviera * Reliability & quality * Integration of global support network + Availability & lead times
Slide 16: Veth Expansion
VETH EXPANSION Global supplier of main and auxiliary Marine propulsion products Strategic Fit Complementary products and powerful new technologies Enhances engineering talent and product development capabilities Prior history working with Veth enables efficient cegration Accelerates sales and market
Slide 17: Optimize Geographic Footprint
OPTIMIZE GEOGRAPHIC FOOTPRINT > $253.2 million Fiscal 2025 International Sales a * * e? e with ° Customers across 50+ countries Minimal tariff impact representing 1% of COGS ee ‘i Menufacturinglocstion © Company owned dstrlouton / serve location @ Purchasing / sourcing offices 7
Slide 18: Controls & System Integration
CONTROLS & SYSTEM INTEGRATION c> Control and full-system integration focus to accelerate growth Twin Disc products across all end markets are built with our control systems, utilizing multiple components and sophisticated controls to manage power output Ability to package a full system solution to v
Slide 19: Pursue M&A Opportunities
PURSUE M&A OPPORTUNITIES Diversification away from Oil & Gas Strategic Fit 3 Acquisition logic immediately evident Evident value creation potential Financial Fit Consistent business performance Internal Rate of Return > Weighted Average Cost of Capital Other Considerations Platform for transformativ
Slide 20: Recent Acquisitions
RECENT ACQUISITIONS KATSA TUE Katsa Oy Acquisition Overview Kobelt Acquisition Overview Acquired Katsa Oy for €21 million (approximately $23 mmillion); transaction closed on May 31, 2024 Leading European manufacturer of high-quality power transmission components and gearboxes for industrial and mari
Slide 21: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Return Capit os
Slide 22: Financial Overview
FINANCIAL OVERVIEW Ccc>
Slide 23: Financial Performance
FINANCIAL PERFORMANCE NET SALES Eemies Maine mLand-Based windustial Other $3407 enn ras GROSS PROFIT BY PRODUCT GROUP Sonted Maine mLand-Baced mindusiial Other $927 vas 53 ee $557 509 ee cS “L if roo LRRD MARS ak aia cea ins OO ee rere DILUTED EARNINGS PER SHARE 3078 s075 $079 (5029) 229 raat raat F
Slide 24: Balance Sheet
BALANCE SHEET NET DEBT smmont $20 $197 Pra Pra EBITDA Emmons s240 336 = pit FY22** 5258 Fs 5265 Fr8 3153 ens $190 Pes ne ee Ty LEVERAGE RATIO 55 1.0 ae 02x 0.2 | rat Fv22* FY] FYA 2S 24
Slide 25: Reaffirming Medium-Term Targets
REAFFIRMING MEDIUM-TERM TARGETS 2030 TARGETS AND DRIVERS Revenue $500 $341M “a 8% CAGR FY 2025 FY 2030 Gross Margin 30% tad — UJ FY 2025 FY 2030 FCF Conversion Maintain at least 60% * Hybrid / Electric leadership * Veth global expansion * Industrial focus = MBA = European cost structure = Operationa
Slide 26: Investment Highlights
INVESTMENT HIGHLIGHTS Frwn(oise) Aleader in global power transmission technology with an increasingly diversified IP-protected portfolio Well-positioned to benefit from tailwinds in defense markets and hybrid transmissions supported by robust backlog Margin enhancement and operational initiatives dr
Slide 27: Appendix
APPENDIX
Slide 28: Reconciliation of Total Debt to Net Debt
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO REPORTED FINANCIAL MEASURES RECONCILIATION OF TOTAL DEBT TO NET DEBT (ln thousands; unaudited) FY25, FY24 FY23 FY22 FY2L Current ‘maturities of 3,000 2,000 2,010 2,000 2,000 long-term debt Long-term debt 28,446 23,811 16,617 34,543 30,085 Total debt $
Slide 29: Reconciliation of Consolidated Net Income to EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL => MEASURES TO REPORTED FINANCIAL MEASURES RECONCILIATION OF CONSOLIDATED NETINCOME TO EBITDA (ln thousands; unaudited) Fas F284 Fv23 Fra" Fait lieben, (=) $10,988 $10,380 $10467 (s29,719) Interest expense 2,646 1443 2253 2a28 2358 Income tax expense (howe 3368 4
Slide 30: Net Debt to EBITDA Leverage Ratio Calculation
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO REPORTED FINANCIAL MEASURES NET DEBT TO EBITDA LEVERAGE RATIO CALCULATION FY, FY24 Fy23FY22** —FY2I* Net debt $15,337 $5,741 $5,364 $24,022 $19,745 EBITDA 19019 26,553 25,781 23,965 3,563 Leverage Ratio 0.8 0.2« 0.2 1.0x 55x ne ee Ty