#1AAM Investor Presentation December 2020#2Forward Looking Statements AAM This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include uncertainty around the duration and effects of the COVID-19 pandemic, and include factors detailed in the reports we file with the SEC, including those described under "Risk Factors" in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this communication. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Ⓡ It should also be noted that this presentation contains certain financial measures, including Adjusted EBITDA, Adjusted Earnings per Share, Adjusted Free Cash Flow, Net Leverage Ratio and Liquidity that are not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. These measures are presented here to provide additional useful measurements to review our operations, provide transparency to investors and enable period-to-period comparability of financial performance. A description of non-GAAP financial measures that we use to evaluate our operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, can be found in the appendix under "Reconciliation of Non-GAAP Measures". 2 2#3Agenda AAM Overview Growth Opportunities in Electrification Financial Highlights ESG Update AAM (®) 3#4www. AAM Overview AAM#5About AAM AAM 2019 SALES $6.5B Fortune 500 Approximately 20,000 ASSOCIATES As a leading, global tier 1 automotive supplier, AAM designs, engineers and manufactures driveline and metal forming technologies that are making the next generation of vehicles smarter, lighter, safer and more efficient AAM delivers POWER that moves the world through world-class quality, technology leadership and operational excellence AAM 17 COUNTRIES Nearly 80 LOCATIONS Over AAM 60 MANUFACTURING FACILITIES 16 ENGINEERING CENTERS 827 TROLL HATTAN TECHNICAL CENTER 5#6Business Units and Market Leadership DRIVELINE ⚫ 2019 Sales - $4.6B • ● A Global Leader in H 1-01-1 Full-size pickup truck and SUV driveline systems AWD systems for crossover vehicles Damped gears, viscous dampers and rubber isolation pulleys Pioneer of disconnecting AWD Systems One of the leaders in hybrid and electric driveline solutions METAL FORMING 2019 Sales $1.8B - Largest automotive forger in the world A Global Leader in • • Powdered metal connecting rods. Differential gears • Axle shafts • Hypoid pinions Transmission gears • Ring gears • • CVT pulleys • Aluminum valve bodies *Note: Market leadership based on company estimates as compared to other independent supplier., business unit sales before eliminations of intercompany sales of approximately $0.5 billion. AAM (®) 6#72020 AAM Highlights dm H Quality Assurance Implemented Significant Cost Savings Actions to Adjust to New Market Demand Received Silver Quality Award at Ford's World Excellence Awards Automotive News PACE AWARD Deloitte, FAPMA Automotive News PACE AWARD Deloitte, YAPMA LEAD REACH CONNECT 2020 WINNER BADJUN EP Won Both PACE Partnership and Innovation Awards for Electric Drive Technology Launched First China eDrive Program at our Liuzhou AAM JV $ AAM Continued Strong Free Cash Flow Generation and Debt Reduction Ⓡ Secured Additional China eDrive Business Win with New Customer 2019 Recognized as GM SUPPLIER Supplier of the Year of the YEAR for Fourth Year in a Row AAM Published Comprehensive Sustainability Report 5 Amended Credit Agreement and Refinanced Senior Notes to Enhance Financial Flexibility 7#8AAM Growth Opportunities in Electrification#9Electrification Opportunities AAM Electrification Is A Growing Portion Of Our Quoting and Emerging New Business Opportunities We Are Well Positioned To Meet Our Customers' Needs OEM E-Drive Outsourcing OEM E-Drive In-Sourcing Vehicle Integration Electric Drive Units ePowertrain Components Gear Boxes AAM CPV: Up to $2,500+ AAM CPV: Up to $500 9#10Vehicle Current Booked Business Small Baojun (E300 Plus) Electrification Opportunities Passenger Car⭑* Mid-Size AAM Luxury Platform P4 (E-Drive) Multiple Chinese OEMs P4 (E-Drive) Premium European Jaguar (I-PACE) OEM Light Truck* Crossover Large SUV/Truck North American OEM P3 Hybrid (E-Drive) P4 (E-Drive) P4 (Sub-Assembly) P AAM Serves All Key Electrification Markets * AAM supplies EDUs, gearboxes, sub-assemblies, and gear components for electric vehicles. Chart shows current wins and targeted segments. 10#11AAM AAM eDrive Next Gen Product Summary ■ AAM is designing highly integrated advanced technology high speed eDrive units to deliver substantial improvements over currently available units Targeted Benefits: - - - >20% improvement in volume* >20% improvement in mass* World class efficiency and NVH *For comparable power levels. A ® 11#12Current Customer Collaboration OEM 1 OEM 2 OEM 3 OEM 4 OEM 5 OEM 6 OEM 7 OEM 8 OEM 9 Power Electronics Supplier EV-Focused Tech Company 1 EV-Focused Tech Company 2 Various Others Gearbox, Subassemblies and Components Next Gen eDrive Units eDrive Units Launched Programs Booked Business - Future Launches Quoting and Emerging New Business Opportunities Formal Partnership / Technology Collaborations AAM (®) 12#13AAM ® 3Q 2020 Highlights and Updated 2020 Targets#143Q 2020 AAM Financial Highlights AAM >$1.4B Quarterly Sales $297M 21% of sales Record Quarterly Adj. EBITDA Margin $217M Record Quarterly Adjusted Free Cash Flow (®) AAM's strong third quarter operating financial results and free cash flow generation reflect the benefits of recovering global production volumes and our cost saving actions * For definitions and reconciliations of non-GAAP financial measures, please see the attached appendix. 14#15Revised 2020 Financial Outlook • Full Year Sales Adjusted EBITDA as disclosed on October 30, 2020 Revised 2020 Financial Targets Adjusted Free Cash Flow ≈ $4.6 billion $665 $680 million - $220 - $235 million AAM's updated 2020 full year financial targets are based on current customer schedules and assume that there are no significant impacts to our expected production or costs related to COVID-19 or the recent fire at our Malvern Manufacturing Facility through the remainder of 2020 • AAM expects restructuring and acquisition-related cash payments to be between $55 and $70 million For definitions of Adjusted EBITDA and Adjusted Free Cash Flow and Non-GAAP reconciliations, please see the attached appendix AAM (®) 15#16Adjusted Free Cash Flow and Credit Profile AAM Cash Flow and Debt Metrics Adjusted Free Cash Flow Net Debt Net Leverage Ratio Liquidity 3Q 2020 $217.2 million $3.0 billion 4.7x $1.48 billion In 3Q 2020, AAM prepaid $350 million of Senior Notes due 2022 * For definitions and reconciliations of non-GAAP financial measures, please see the attached appendix. 16#17Downside Protection Playbook Sales Decline 0% 25%+ AND/OR Potential Actions Duration Expected Short Longer Restructuring Costs Required? Reduce Variable Costs Direct Material (60% of COGS) No Hourly Headcount Variable Overhead Reduce Semi-fixed Costs Salaried headcount, merit and incentive compensation adjustments/deferrals • Formal spending reduction programs (ex. travel) Align future R&D, project and capital expenses to lower sales levels Select Recapacitating of Facilities • Align capacity with customers Plant loading adjustments to optimize capacity Structural Capacity and Overhead Reduction Global footprint consolidations • Significant Salaried Reduction in Force programs Note: This list includes examples for illustrative purposes and does not include all potential actions Limited Moderate Higher AAM is analyzing its full playbook and in process with many actions across its global operations 17#18Debt Maturity Profile Senior Debt Maturities As of 9/30/2020 $925M Revolver $1,189 Average life of Senior Debt nearly 5 years Next maturity in 2024 Options for cost-efficient $700 $2 $13 $21 $30 $272 $400 $500 $400 2020 2021 2022 2023 6.875% Notes 2024 2025 Term Loan A 2026 2027 2028 Term Loan B 6.25% Notes 6.25% Notes 6.50% Notes prepayments AAM (®) 18#19J ESG Update AAM#20Sustainability Update In 2020, AAM published a comprehensive sustainability report (available on www.aam.com/sustainability) WER STARTS HERE AAM 2019 SUSTAINABILITY REPORT TABLE OF CONTENTS Am AAM Charman and C90 Bustinbrity Priority Topics Board Light Sustainability Leadership. Enic and Compliance Program Cascade and Verify Supplier Compliance Commitment the Environment-u AAM Environmental Management System. Carbon De Project (GDP) Reporting Social-AAM People-Firat Cultuur My Magimmint Spilim ty and Inclusion. Attract Op Engage and Pain Det Promoting Heilby Lifestyle Through vina Program Dopment and Leaming Supporting Our Comman Products – AAM's Drive for iconcy Investimenta in fechmology - Powering the Futures. Advancing Technology-Product Portala. AAM Quality Salam. Quality Award 10 10 15 T 20 10 34 4-1 AAM In a survey conducted by Institutional Investor, our Financially Material ESG Disclosures were ranked 1st out of 80+ nominated Small-cap Consumer companies (®) MARCH 2020 CDP Sports 20 20#21Sustainability Leadership and Oversight Board of Directors Nominating / Corporate Governance Committee Sustainability Steering Committee Policy Committee Head of Sustainability Cross-Functional Experts and Leaders Environmental Human Resources Legal Finance Procurement Quality Product AAM R Environmental Michael K. Simonte President Responsible for the development of strategies, action plans, goals and performance, as well as external reporting of environmental, energy and safety goals Social Terri M. Kemp Vice President - Human Resources Responsible for social responsibility, such as promoting our people-first culture with diversity and inclusion initiatives, associate training, education and wellness programs, and support of universal human rights TTTTT Governance David E. Barnes Vice President & General Counsel Serves as Chief Compliance Officer and is responsible for ESG compliance and corporate governance, including reporting to our Board of Directors and relevant committees on sustainability matters AAM's sustainability program is managed within a well-defined governance structure, through clearly- established ownership and responsibilities at multiple levels in the organization. 21 24#22Sustainability: Key Areas of Focus AAM (®) TTTTT GOVERNANCE Ethical Business Practices and Training ENVIRONMENTAL Energy and Emissions Reduction 0-30 3° SOCIAL Associate Health, Safety and Wellness Attract, Develop, Engage and Retain Diverse Talent Cascade and Verify Supplier Compliance Reduce Water Use at Every Location Reduce, Reuse, Recycle Industrial Materials Partner with Global Communities 1-4 H 1-11-1 PRODUCT Investment in Technology Product Quality and Safety Our cross-functional team of subject matter experts considered Global Reporting Initiative (GRI) standards, industry-specific standards of the Sustainability Accounting Standards Board (SASB) and the United Nations Sustainable Development Goals to prioritize sustainability topics and develop performance indicators 222 22#23AAM (®) Why AAM? Experienced and proven management team Strong core business focused on high demand products, complimented by global profitable growth opportunities Flexible and variable cost structure with a proven track record of effectively adjusting our business to current market demand Superior profit margin and strong free cash flow yield driven by AAM's operating system and the benefit of vertical integration Highly innovative and scalable electrification propulsion technologies designed to accelerate growth and serve multiple regions, customers and vehicle segments 23 23#24T L-J AAM DELIVERING POWER THAT MOVES THE WORLD.#25J AAM Supplemental Data#26Reconciliation of Non-GAAP Measures AAM ® In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this presentation, we have provided certain information, which includes non-GAAP financial measures. Such information is reconciled to its closest GAAP measure in accordance with Securities and Exchange Commission rules and is included in the following slides. Certain of the forward-looking financial measures included in this earnings release are provided on a non-GAAP basis. A reconciliation of non-GAAP forward-looking financial measures to the most directly comparable forward-looking financial measures calculated and presented in accordance with GAAP has been provided. The amounts in these reconciliations are based on our current estimates and actual results may differ materially from these forward-looking estimates for many reasons, including potential event driven transactional and other non-core operating items and their related effects in any future. period, the magnitude of which may be significant. 26 26#273Q 2020 Year-Over-Year Sales Walk (in millions) $1,677 $57 $1,522 ($155) AAM $17 $1,414 ($87) ($15) ($55) ($10) ($15) (®) 3Q 2019 Sales Sale of U.S. Casting 3Q 2019 Sales Pro forma for U.S. Casting Sale 3Q 2019 GM Work Stoppage COVID-19 Related GM Thailand Exit Transition to IRDA's for GM's New Full-Size Other Volume & Pricing Metal Market & 3Q 2020 Sales Mix Fx SUV 27 22#283Q 2020 Year-over-Year Adjusted EBITDA Walk (in millions) $266 $18 $260 ($6) ($16) ($10) ($10) $22 $8 | ($3) AAM R $297 $4 $24 I 3Q 2019 U.S. 3Q 2019 Adjusted EBITDA Casting EBITDA forma for U.S. Casting Sale * For definitions and reconciliations of non-GAAP financial measures, please see the attached appendix. EBITDA Pro 3Q 2019 Adj. 3Q 2019 GM Work Stoppage Lower Sales Related to COVID-19 Other Volume & Pricing Mix Metal Market & Fx Customer ED&D COVID-19 costs Cost Reduction Reimbursement Actions and Commercial Settlement Timing Performance 3Q 2020 and Other Adjusted EBITDA 28#29Supplemental Data EBITDA and Adjusted EBITDA Reconciliation ($ in millions) Three Months Ended Nine Months Ended AAM September 30, September 30, 2020 2019 2020 2019 Net income (loss) Interest expense Income tax expense (benefit) $ 117.2 $ (124.1) $ (597.2) (29.7) 53.9 54.3 160.0 163.9 (22.5) (40.4) (63.1) (37.4) Depreciation and amortization 125.0 134.2 393.7 411.5 EBITDA 273.6 24.0 (106.6) 508.3 Restructuring and acquisition-related costs 9.7 11.7 38.6 36.0 Debt refinancing and redemption costs 5.2 5.1 6.7 7.5 Impairment charges 225.0 510.0 225.0 Loss on sale of business 1.0 Non-recurring items: Malvern fire charges, net of recoveries 8.6 8.6 Adjusted EBITDA $ 297.1 $ 265.8 $ 458.3 $ 776.8 as % of net sales 21.0% 15.8% 14.0% 15.2% (®) 29 29#30Supplemental Data December 31, 2019 March 31, 2020 Net income (loss) $ Interest expense (454.4) 53.4 $ (501.2) 51.5 Income tax expense (benefit) (11.5) 3.3 EBITDA and Adjusted EBITDA for the Trailing Twelve Months Ended September 30, 2020 ($ in millions) Trailing Twelve Months Ended September 30, (1,051.6) 213.4 (74.6) Quarter Ended June 30, 2020 September 30, 2020 2020 $ (213.2) 54.6 $ 117.2 $ 53.9 (43.9) (22.5) Depreciation and amortization 125.4 129.6 139.1 125.0 519.1 EBITDA (287.1) (316.8) (63.4) 273.6 (393.7) Restructuring and acquisition-related costs 21.8 17.6 11.3 9.7 60.4 Debt refinancing and redemption costs 0.9 1.5 5.2 7.6 Impairment charges 440.0 510.0 950.0 Pension settlement 9.8 9.8 Loss on sale of business 21.3 1.0 22.3 Non-recurring items: Gain on bargain purchase of business Malvern fire charges, net of recoveries Other Adjusted EBITDA as % of net sales AAM (®) (10.8) (10.8) 8.6 8.6 (2.4) (2.4) $ 193.5 13.5% $ 213.3 $ 15.9% (52.1) $ -10.1% 297.1 $ 651.8 21.0% 13.9% 30#31Supplemental Data Adjusted Earnings (Loss) Per Share Reconciliation Three Months Ended Diluted earnings (loss) per share Restructuring and acquisition-related costs Debt refinancing and redemption costs Impairment charges Loss on sale of business Non-recurring items: September 30, Nine Months Ended September 30, 2020 2019 2020 2019 $ 0.99 $ (1.10) $ (5.28) $ (0.27) 0.08 0.10 0.34 0.32 0.05 0.05 0.06 0.07 2.00 4.51 2.00 0.01 Malvern fire, net of recoveries 0.07 0.08 Adjustment to liability for unrecognized tax benefits (0.06) Tax adjustments related to the CARES Act and Tax Cuts and Jobs Act Other (0.07) (0.08) 0.14 Tax effect of adjustments (0.04) Adjustment for anti-dilutive effect (0.45) (0.02) (0.12) (0.50) (0.05) Adjusted earnings (loss) per share $ 1.15 $ 0.58 $ (0.39) $ 1.49 AAM Adjusted earnings (loss) per share are based on weighted average diluted shares outstanding of 118.4 million and 115.8 million for the three months ended on September 30, 2020 and 2019, respectively, and 113.0 million and 115.6 million for the nine months ended on September 30, 2020 and 2019, respectively. (®) 31#32Supplemental Data Free Cash Flow and Adjusted Free Cash Flow Reconciliation ($ in millions) AAM (®) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net cash provided by operating activities $ 249.5 $ 241.7 $ 246.4 $ 378.6 Less: Capital expenditures net of proceeds from sale of property, plant and equipment (40.5) (97.5) (144.7) (333.3) Free cash flow 209.0 144.2 101.7 45.3 Cash payments for restructuring and acquisition-related costs Adjusted Free Cash Flow 8.2 16.3 37.0 46.0 $ 217.2 $ 160.5 $ 138.7 $ 91.3 32 32#33Supplemental Data Net Debt and Net Leverage Ratio ($ in millions) September 30, 2020 Current portion of long-term debt Long-term debt, net Total debt, net Less: Cash and cash equivalents Net debt at end of period 26.5 3,555.4 3,581.9 537.3 3,044.6 $ 651.8 Adjusted LTM EBITDA Net Leverage Ratio 4.7 AAM (®) 33#34Supplemental Data Full Year 2020 Outlook ($ in millions) Adjusted EBITDA Low End High End Net loss Income tax benefit (617) (602) (70) (70) Interest expense 215 215 Depreciation and amortization 525 525 Full year 2020 targeted EBITDA 53 68 Impairment charges 510 510 Restructuring and acquisition-related costs 85 85 Debt refinancing and redemption costs 7 7 Non-recurring charges and other 10 10 Full year 2020 targeted Adjusted EBITDA $ 665 $ 680 AAM (®) 34#35Supplemental Data Full Year 2020 Outlook ($ in millions) Adjusted Free Cash Flow Net cash provided by operating activities Capital expenditures net of proceeds from the sale of property, plant and equipment Low End High End 405 420 Full year 2020 targeted Free Cash Flow (250) (250) 155 170 Cash payments for restructuring and acquisition- related costs 65 65 Full year 2020 targeted Adjusted Free Cash Flow $ 220 $ 235 AAM (®) 35#36Definition of Non-GAAP Measures AAM R EBITDA and Adjusted EBITDA We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition- related costs, debt refinancing and redemption costs, loss on sale of a business, impairment charges, pension settlements and non-recurring items. We believe that EBITDA and Adjusted EBITDA are meaningful measures of performance as they are commonly utilized by management and investors to analyze operating performance and entity valuation. Our management, the investment community and the banking institutions routinely use EBITDA and Adjusted EBITDA, together with other measures, to measure our operating performance relative to other Tier 1 automotive suppliers. We also use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. EBITDA and Adjusted EBITDA should not be construed as income from operations, net income or cash flow from operating activities as determined under GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently. Adjusted Earnings (Loss) Per Share We define Adjusted earnings (loss) per share to be diluted earnings per share excluding the impact of restructuring and acquisition related costs, debt refinancing and redemption costs, loss on sale of a business, impairment charges, and non-recurring items, including the tax effect thereon. We believe Adjusted earnings (loss) per share is a meaningful measure as it is commonly utilized by management and investors in assessing ongoing financial performance that provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of core operating performance and which may obscure underlying business results and trends. Other companies may calculate Adjusted earnings (loss) per share differently. Free Cash Flow and Adjusted Free Cash Flow We define free cash flow to be net cash provided by (used in) operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs. We believe free cash flow and Adjusted free cash flow are meaningful measures as they are commonly utilized by management and investors to assess our ability to generate cash flow from business operations to repay debt and return capital to our stockholders. Free cash flow and Adjusted free cash flow are also key metrics used in our calculation of incentive compensation. Other companies may calculate free cash flow and Adjusted free cash flow differently. Net Debt and Net Leverage Ratio We define net debt to be total debt, net less cash and cash equivalents. We define Net Leverage Ratio to be net debt divided by the trailing 12 months of Adjusted EBITDA. We believe that Net Leverage Ratio is a meaningful measure of financial condition as it is commonly used by management, investors and creditors to assess capital structure risk. Other companies may calculate Net Leverage Ratio differently. Liquidity We define Liquidity as cash on hand plus amounts available on our revolving credit facility and foreign credit facilities. US SAAR We define US SAAR as the seasonally adjusted annual rate of light vehicle sales in the United States. Other Other includes the accelerated depreciation for certain assets that will be idled as a result of our largest customer exiting their operations in Thailand, which they announced in 2020. 36#37AAM R www.aam.com in i✪O