2011 North Carolina Aerospace Suppliers Conference

1. ®
AAR Company Overview
Presented to: NC Aerospace Suppliers
Conference
August 24, 2011
4Q FY2011 1

2. AAR Overview
► Leading provider to commercial aviation and
government/defense customers
► Incorporated in 1955 — Only two CEOs in
Company’s history
► Track record of consistent profitability
► 16% Sales CAGR over last five years
► 6,400 employees at more than 60 locations,
worldwide
► Highly experienced leadership from
commercial and military
► Diverse markets, customers and products
> 48% Commercial — 52% Government
> 85% North America — 15% International
> 77% Aftermarket Services —
23% Manufacturing & Integration
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3. AAR Global Presence
AVIATION SUPPLY
CHAIN
Abu Dhabi, UAE
Amsterdam, Netherlands
Atlanta, Georgia*
Chicago, Illinois
Garden City, New York
Hannover, Germany*
London, England
Manamah, Bahrain*
Melbourne, Australia
Paris, France
Phoenix, Arizona*
Rio de Janeiro, Brazil
Shanghai, China
Singapore, Republic
of Singapore
Teterboro, New Jersey
Tokyo, Japan
Toronto, Canada*
Zhuhai, China*
GOVERNMENT & GOVERNMENT &
DEFENSE SERVICES DEFENSE SERVICES
Adelaide, Australia Travis AFB, California*
Al Dhafra, UAE* Virginia Beach, Virginia*
Afghanistan (6 sites)* Waddington, England*
Burkina Faso Warner Robins, Georgia*
Cherry Point, North Carolina* Windsor, Connecticut
Chicago, Illinois Western Pacific (Guam)
Eindhoven, Netherlands*
Ft. Worth, Texas*
STRUCTURES &
Greensboro, North Carolina
Havelock, North Carolina SYSTEMS
Indianapolis, Indiana* Cadillac, Michigan
Jacksonville, Florida* Chicago, Illinois
Lake Charles, Louisiana* Clearwater, Florida
Macon, Georgia Cullman, Alabama
McGuire AFB, New Jersey* Fayetteville, North Carolina
Melbourne, Florida Goldsboro, North Carolina
MRO FACILITIES
Nash, Texas Huntsville, Alabama Auburn, Washington*
Ogden, Utah Lebanon, Kentucky Hot Springs, Arkansas
Oklahoma City, Oklahoma* Melbourne, Florida Indianapolis, Indiana
Palm Bay, Florida Memphis, Tennessee Kuala Lumpur, Malaysia
San Diego, California* Sacramento, California Miami, Florida
Scott AFB, Illinois* Williamsburg, Virginia* Oklahoma City, Oklahoma * Co-located with customer facilities

4. Diversified Revenue Stream
$1,776M
$1,800M
$1,600M
$1,385M $1,424M
$1,400M $1,352M
$1,200M
$1,061M
$1,000M
$886M
$800M
$600M
$400M
$200M
$0M
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
Aviation Supply Chain Maintenance, Repair & Overhaul Structures & Systems Government & Defense Services
Solid Financial Performance — 35% year-over-year growth.
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5. A Sampling of AAR Customers
Airlines OEMs & MROs Cargo
Government
NATO
U.S. DoD
U.S. TRANSCOM
U.K. MoD
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6. Our People — Recognized for Excellence
Forbes Secretary of Defense Boeing Gold
Most Trustworthy Performance-Based Performance
Companies Logistics Award Excellence Awards
FAA Top 100
Diamond Military-Friendly
Award Employers
AAR has earned a leadership position for its support of
both commercial aviation and national priorities.
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7. Total Support for Aerospace & Defense
Aviation Supply Chain Maintenance, Repair
 Supply Chain Management & Overhaul
 Aircraft & Engine Parts  Aircraft Maintenance/Mods
 Aircraft Sales and Leasing  Engineering Services
 Component Repair  Landing Gear, Wheels and
Brakes
Field Services
Government & Defense Structures & Systems
Services  Mobile Shelters
 Airlift Support  Containers and Pallets
 Logistics Services  Machining Services
 Communications Technologies  Cargo Systems
 Aircraft Modifications
Diverse capabilities for commercial aviation, government and defense.
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8. AAR Facilities in North Carolina
• Cargo Systems Goldsboro
• Mobility Systems Goldsboro &
Fayetteville
• Defense Systems Greensboro &
Havelock

9. AAR Defense Systems and Logistics (DS&L)
- Military Performance Based Logistics
►The AAR Team
● Experienced foundation in commercial / military aviation
● Retired Military aviation logisticians
● Understand O/I/D maintenance/supply functions
● Motivated by Performance Based Logistics (PBL)
►Our product is our Logistics Service
● Quality people are essential
● Mission oriented focus
►We are good at Integration
● Bridging the gap – Commercial / Government support
● Industry / Government Team work
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10. DS&L’s Role within PBL contracts
►AAR provides 3rd Party Logistics (3PL) support services
to our OEM customers
● Military logistics background
● Depot / Fleet / ICP / OEM Interfaces
● IT Systems integration - interfaces
● Requisition Response
● Material forecasting
● Warehousing
● Transaction Item Reporting (CAV/SIT)
● Transportation/Freight/local delivery/ITAR
● Expediting
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11. AAR DS&L … and PBL’s
►What we like about PBL’s
● Contractor is incentivized to improve availability/reliability
for their systems, not just selling more parts
● Good for the War Fighter
● Good for the Tax Payer
►The ―Headache‖ is the painfully slow process of award
● Original PBL concept was to keep it simple and ―buy the
watch‖ - One metric – Availability at a lower cost
● That vision has become blurred, contracts complicated
● Difficult to keep an OEM interested in playing in the
sandbox
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12. ®
Thank you for your time today.
Let us know how we can contribute to your
success.
John Hannaford
Regional Director, Military Programs
AAR Defense Systems & Logistics
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