#1Investor Day July 20, 2023 AAR aarcorp.com f in 0#2Forward-looking statements Note: All results and expectations in the presentation reflect continuing operations unless otherwise noted. 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 statements often address our expected future operating and financial performance and financial condition, or targets, goals, commitments, and other business plans, and often may also be identified because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms. These forward-looking statements are based on the beliefs of Company management, as well as assumptions and estimates based on information available to the Company as of the dates such assumptions and estimates are made, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, depending on a variety of factors, including: (i) factors that adversely affect the commercial aviation industry; (ii) the impact of pandemics and other disease outbreaks, such as COVID-19, and similar public health threats on air travel, worldwide commercial activity and our and our customers' ability to source parts and components; (iii) a reduction in the level of sales to the branches, agencies and departments of the U.S. government and their contractors (which were 29% of consolidated sales in fiscal year 2023); (iv) (v) cost overruns and losses on fixed-price contracts; (vi) nonperformance by subcontractors or suppliers; (vii) changes in or non-compliance with laws and regulations that may affect certain of our aviation and government and defense related activities that are subject to licensing, certification and other regulatory requirements imposed by the FAA, the U.S. State Department and other regulatory agencies, both domestic and foreign; (viii) a reduction in outsourcing of maintenance activity by airlines; (ix) a shortage of the skilled personnel on whom we depend to operate our business, or work stoppages; (x) competition from other companies, including original equipment manufacturers, some of which have greater financial resources than we do; (xi) financial and operational risks arising as a result of operating internationally; (xii) inability to integrate acquisitions effectively and execute our operational and financial plan related to the acquisitions; (xiii) failure to realize the anticipated benefits of the acquisition of Trax USA Corp. ("Trax") and difficulties integrating Trax's operations: (xiv) inability to recover our costs due to fluctuations in market values for aviation products and equipment caused by various factors, including reductions in air travel, airline bankruptcies, consolidations and fleet reductions; (xv) asset impairment charges we may be required to recognize to reflect the non-recoverability of our assets or lowered expectations regarding businesses we have acquired; (xvi) threats to our systems technology from equipment failures, cyber or other security threats or other disruptions; (xvii) a need to make significant capital expenditures to keep pace with technological developments in our industry; (xviii) a need to reduce the carrying value of our assets; (xix) inability to fully execute our stock repurchase program and return capital to our stockholders; (xvii) restrictions on paying, or failure to maintain or pay dividends; (xx) limitations on our ability to access the debt and equity capital markets or to draw down funds under loan agreements; (xxi) non-compliance with restrictive and financial covenants contained in certain of our loan agreements; (xxii) non-compliance with laws and regulations relating to the formation, administration and performance of our U.S. government contracts; (xxiii) exposure to product liability and property claims that may be in excess of our liability insurance coverage; (xxiv) impacts from stakeholder and market focus on environmental, social and governance matters; and (xxv) the costs of compliance, and liability for non-compliance, with environmental regulations, including future requirements regarding climate change and environmental, social and governance matters. Should one or more of those risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. Those events and uncertainties are difficult or impossible to predict accurately and many are beyond our control. For a discussion of these and other risks and uncertainties, refer to our Annual Report on Form 10-K, Part I, "Item 1A, Risk Factors" and our other filings filed from time to time with the U.S. Securities and Exchange Commission. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Fiscal 2024 Segment Realignment: As previously announced, during the first quarter of fiscal 2024, our chief operating decision maker implemented changes to the organization of the business, allocation of resources, and performance assessment. Specifically, this new structure resulted in the separation of our Aviation Services segment into three new operating segments: Parts Supply, Integrated Solutions and Repair & Engineering. Beginning with the first quarter of fiscal 2024, the Company will report under this new structure using the following four operating segments: Parts Supply, Integrated Solutions, Repair & Engineering and Expeditionary Services. These changes will be initially reflected in the Company's unaudited condensed consolidated financial statements for the quarterly period ending August 31, 2023. This presentation and the related discussion, other than references to historical periods unless specifically noted, reference the new reportable segments effective the beginning of fiscal 2024. See the Company's Current Report on Form 8-K, furnished on July 18, 2023, for certain recast historical summary financial information under the Company's new operating segment structure for fiscal years 2022 and 2023 and for the previously reported quarters in fiscal year 2023. Presentation Materials: The statements included and the information provided in this presentation are made as of July 20, 2023. Non-GAAP Financial Measures: This presentation includes certain non-GAAP financial measures. Please refer to the Appendix for additional information on these non-GAAP financial measures and reconciliations to the comparable GAAP measures. AAR © 2023 AAR CORP. All rights reserved worldwide. N#3Agenda Company and strategy Market overview and position Operations: Parts Supply: Used Serviceable Material Parts Supply: Distribution Repair & Engineering Integrated Solutions AAR Trax aviation software Financial overview Closing comments and Q&A John M. Holmes Chris Jessup Sal Marino Frank Landrio Break Tom Hoferer Nicholas Gross Jose Almeida / Andrew Schmidt Sean Gillen © 2023 AAR CORP. All rights reserved worldwide. 3#4Company and strategy John M. Holmes Chairman, President and Chief Executive Officer AAR Doing It Right#5AAR John M. Holmes Joined AAR in 2001 Named General Manager of AAR's parts trading business in 2003 Progressively assumed responsibility for the other businesses that comprise Aviation Services with a focus on achieving growth and operational efficiencies Appointed President and Chief Operating Officer in 2017 Named President and Chief Executive Officer in 2018 Elected Chairman of the Board of Directors in 2023 © 2023 AAR CORP. All rights reserved worldwide. LO 5#6Vision Be the most respected global independent provider of aviation parts and repair services Create value for customers through differentiated capabilities and offerings, resulting in a sustainable, unique competitive advantage Doing It Right AAR © 2023 AAR CORP. All rights reserved worldwide.#7Company Global aerospace and defense aftermarket solutions Founded Market cap ~$2B Adjusted sales $2.0B Key Metrics 1951 NYSE Employees Adj. operating margin AIR 7.5% ~5,000 DEPARTMENT STATE NITED STATES OGISTICS UNITED Selected Customers AIR CANADA QATAR القطرية AIRWAYS * OF AMERI ▲ DELTA Jet2.com MTU Aero Engines GE GE Aviation LOCKHEED MARTIN -DHL= Alaska AIRLINES Southwest' American Airlines Note: Adjusted sales, adjusted operating margin and employees for fiscal year ended May 31, 2023. Market cap as of July 18, 2023. See Appendix for reconciliation of non-GAAP financial measures AAR Businesses Parts Supply Repair & Engineering Integrated Solutions Expeditionary Services © 2023 AAR CORP. All rights reserved worldwide. 7#8Business overview Expeditionary Services 5% . Parts Supply Used serviceable material (USM) Integrated Solutions $2.0B 27% FY23 Parts Supply 41% . New parts distribution sales . Online PAARTSSM Store Repair & . • 24/7 global aircraft-on-ground (AOG) service Integrated Solutions Government aircraft maintenance, logistics, and operations support programs • Commercial flight-hour-based aircraft component support Engineering 27% Government 33% FY23 sales Note: Fiscal year (FY) ends May 31 AAR® • Consumable and expendable parts programs • Trax ERP software for aircraft MRO Commercial 67% Х Repair & Engineering Airframe maintenance, repair & overhaul (MRO) Component Repair & Landing Gear Overhaul Engineering Development of proprietary Parts Manufacturer Approval (PMA) parts Expeditionary Services Mobility Systems: Rapid deployment sustainment solutions for government applications • Pallets for use in military transport aircraft • Containers for customized air-mobile shipping and storage of equipment Shelter systems for military operations Expanding from two reported segments to four © 2023 AAR CORP. All rights reserved worldwide.#9Values: Doing It RightⓇ Quality first. Safety always. Find a way. Every day. Do it fast. Do it well. Work as one. Be inclusive. Ideas matter. Think new. Think ahead. AAR A Be honest. Inspire trust. Make money. Have fun. Own it. © 2023 AAR CORP. All rights reserved worldwide. O#10Corporate citizenship • • • ESG reporting Published our first two ESG reports Data reporting consistent with Global Reporting Initiative and Sustainable Accounting Standards Board Added disclosures consistent with Task Force on Climate-Related Financial Disclosures in 2022 AAR Doing It Right • Added results of impact assessment performed in 2022 • Compliance commitment Established Compliance Champion Network to broaden reach and further embed compliance into company culture Enhanced due diligence practices, ongoing monitoring and targeted anti- corruption audits to reduce third party risk Created Executive Compliance Committee to support growth and oversight of compliance program Significant recognition received Newsweek's America's Greatest Workplaces 2023 Newsweek's America's Greatest Workplaces for Diversity 2023 2023 Military FriendlyⓇ Employer, Military FriendlyⓇ Spouse Employer, Military FriendlyⓇ Top 10 Brand, and Military FriendlyⓇ Top 10 Supplier Diversity Program Bloomberg Government's BGOV 200 list of top federal contractors 2022 2022 Environmental, Social, and Governance Report Committed to ESG and compliance leadership AAR® GAAR AAR © 2023 AAR CORP. All rights reserved worldwide. 10#11Key messages Y AAR Actions taken have produced a stronger, better business than pre- pandemic • Exited underperforming contracts and businesses • Consolidated facilities • Developed proprietary labor pipelines Improved airframe maintenance efficiency Driving greater differentiation into the business • Software solutions • Tech-based maintenance, repair and overhaul (MRO) proficiency Proprietary Parts Manufacturer Approval (PMA) parts. MI Multiple growth prongs • . Large and growing commercial markets; pandemic recovery still occurring Increasing used serviceable material (USM) adoption and feedstock • Continued distribution share gain • Airframe maintenance capacity expansion Government offering and recovery Raising the bar on shareholder value • Transparency Profitability • Cash conversion Innovation © 2023 AAR CORP. All rights reserved worldwide. 11#12Re-segmentation of financial reporting Prior (FY23) Aviation Services Revenue: $1.9B Adj operating margin: 8.7% Expeditionary Services Revenue: $92M Adj operating margin: 8.4% Parts Supply New (FY23) Repair & Engineering ☑ Repair Integrated Solutions Revenue: $818M Adj operating margin: 11.7% Revenue: $533M Adj operating margin: 6.3% Revenue: $547M Adj operating margin: 6.6% Expeditionary Services Revenue: $92M Adj operating margin: 8.4% Note: Fiscal year (FY) ends May 31; figures reflect continuing operations and do not reflect unallocated corporate expense; recast figures are unaudited; see Appendix for reconciliation of non-GAAP financial measures AAR © 2023 AAR CORP. All rights reserved worldwide. 12#13Connected businesses model Integrated Solutions • Programmatic parts and repair . solutions Fuels Parts Supply activities ⚫ Funds component repair capability development Government USM customer relationships Integrated Solutions Digital Services Supply Parts Repair & Engineering AAR® Unique value proposition Parts Supply: • USM & Distribution Sourcing to supply Repair & Engineering and Integrated Solutions Data for use in repair capability development Sales channels supported by maintenance relationships Repair & Engineering . . Strategic relationships with blue chip airlines that support parts volumes Repair knowledge and data collection PMA parts development for internal and external consumption © 2023 AAR CORP. All rights reserved worldwide. 13#14What's changed since 2019 Investor Day 1 2 3 4 Exited underperforming business & consolidated facilities Exited certain loss-making contracts, sold certain non-core businesses, closed highest cost hangar and secondary Mobility location Fortified skilled labor pipeline and retention Partnered with trade schools and colleges to develop aviation curriculum and career paths, worked with airline customers to secure better wages Narrowed airframe maintenance focus to drive efficiency Prioritized larger customers with consistent demand, aligned facilities with specific customers and aircraft platforms, focused on 737 Added dedicated USM supply and new distribution lines Fortress partnership for capital-light USM supply; won new distribution lines with Unison, Arkwin, Ontic, Northrop, Collins Expanded digital solutions 5 Acquired Trax maintenance software, launched paperless hangar initiative, added capability to PAARTSSM Store eCommerce platform • • . More profitable $2.86 FY23 adj EPS from continuing ops vs. $2.56 for LTM Feb '20 despite 11% lower sales Higher margin 7.5% FY23 adjusted op margin vs. 5.5% for LTM Feb '20 despite 11% lower sales Stronger cash conversion 1.1x net leverage despite $180m investment in Parts growth and Trax, and $92m share repo ⚫ Better capability and offerings Improved turnarounds, expanded sources of Parts Supply, differentiated software solutions More focused Fewer, more connected businesses Note: FY ends May 31; figures reflect continuing operations; adjusted EPS reflects dilution; see Appendix for reconciliation of non-GAAP financial measures AAR On course: Stronger, better business creates foundation for further growth © 2023 AAR CORP. All rights reserved worldwide. 14#15Growth drivers AAR Large and growing markets with pandemic recovery still occurring and new aircraft delivery constraints further extending aftermarket demand Increasing USM adoption by commercial customers and U.S. Government supported by proprietary AAR supply Continuing government demand for commercial best practices approach to supporting its aircraft, which AAR is uniquely positioned to provide Trax and other digital offerings including Trax's eMRO aviation software and eMobility Trax suite of apps, and investments in eCommerce Continued market share gain in distribution leveraging technical global sales force delivering value-added "Sales as a Service" to component OEMs Technology-driven MRO efficiency: paperless hangar initiative, drone-based inspections, wearables to leverage fewer expert technicians Additional airframe maintenance capacity at existing locations that have deeper labors pools, paired with long-term customer commitments Development of proprietary PMA parts for internal and external consumption based on demand from MRO operations © 2023 AAR CORP. All rights reserved worldwide. 15#163-5 year organic financial targets 3 . . 5-10% annual revenue growth Large and growing markets with pandemic recovery tailwinds Multiple levers to take market share: proprietary USM supply, unique distribution model that is resonating with OEM partners, airframe hangar expansion, government value model Aerospace aftermarket resilience to macroeconomic conditions W 10-15% annual adjusted EPS growth • Margin expansion Balance sheet strength to support additional growth investments and/or capital return to shareholders (11) 9-10%+ adjusted operating margin . • . Mix shift towards Parts Supply Additional efficiencies and leverage on fixed cost base Further addition of high margin software solutions and proprietary parts $ Consistent year-over-year ROIC improvement Mix shift towards higher ROIC activities including Parts Supply • Government programs growth New wins with ROIC in excess of existing business AAR® Raising the bar on shareholder value creation © 2023 AAR CORP. All rights reserved worldwide. 16#17What's next... • Our large and growing markets Used Serviceable Material leadership • Distribution model that is resonating with OEMs • • Significantly more efficient Repair & Engineering business Integration Solutions offerings that bring the best of AAR together Power of the AAR-Trax combination Our financial performance improvement Q&A AAR © 2023 AAR CORP. All rights reserved worldwide. 17#18AAR Doing It Right® Market overview and positioning Chris Jessup Chief Commercial Officer#19AAR Chris Jessup Joined AAR in 2008 when the Company acquired Avborne, where he held various senior executive roles in sales, marketing and business development dating back to 2002. Served in various senior leadership sales and operational roles from 2008 to 2015 within AAR's MRO Services group, concluding with Senior Vice President, Airframe MRO Services Promoted to Chief Commercial Officer of AAR's Aviation Services segment in 2015 Named Chief Commercial Officer of AAR in 2017 Holds Bachelor of Business Administration and MBA in Aviation from Embry-Riddle Aeronautical University © 2023 AAR CORP. All rights reserved worldwide. 19#20Commercial air travel recovery and resilience AAR's commercial businesses are driven by air travel AAR Commercial Aviation Services Sales ($M) Global Available Seat Miles (ASMs) 12.0 Global Available Seat Kilometers 10.0 7.0 $1,342 6.0 $1,282 $1,269 Global ASMS (trillions) NWA 2.0 3.0 4.0 5.0 1.0 $794 $1,321 $1,082 0.0 FY18 FY19 FY20 FY21 FY22 FY23 • AAR's commercial sales have closely tracked global commercial air travel historically • Air travel has recovered significantly, but is still not back to pre-pandemic levels Source: ASM data from Cirium Trillions 8.0 6.0 4.0 2.0 0.0 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 • Global commercial air travel has been historically resilient through economics cycles Aerospace aftermarket not historically subject to same cyclicality as new aircraft business Source: IATA © 2023 AAR CORP. All rights reserved worldwide. AAR 20 20#21Aircraft deliveries and retirements Depressed deliveries have limited retirements and aged the in-service fleet Qty of Aircraft Delivered per Year Qty of Aircraft Actuals 2018 - 2022 Forecast 2023-2025 Retired per Year Retirements % of Active Fleet 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 ull 500 400 900 800 700 600 3.5 Retirements as % of In-Service Fleet 3.0 2.5 2.0 40 1.5 300 1.0 200 0.5 100 0 0.0 2018 2019 2020 2021 2022 2023 2024 2025 2018 2019 2020 2021 2022 2023 Jan-Early July Fewer deliveries have extended the existing fleet, which is expected to continue to drive higher aftermarket parts and maintenance requirements Reduction in retirements has limited the availability of USM supply; as new deliveries ramp and older aircraft are retired, USM supply expected to return Source: Aviation Week Fleet Discovery Early July 2023. Naveo analysis Source: Teal Group February 2023. Naveo analysis AAR © 2023 AAR CORP. All rights reserved worldwide. 21#22Aircraft parts and maintenance markets AAR's markets are large and growing $120 $100 $80 $60 $40 $20 $0 $102B 6.6% CAGR 5.3% CAGR Airframe Heavy & Modifications • Global MRO market spend forecasted to return to pre-pandemic levels in calendar year 2023 • Older aircraft fleet expected to drive incremental MRO demand in near-term $84B 3.7% CAGR Line Maintenance 2022A 7.2% CAGR Components • As new aircraft production ramps-up, older aircraft will be retired, providing USM feedstock • Engine MRO market drives majority of demand for AAR'S USM business 8.0% CAGR Engine Maintenance • 2025E Source: ICF, Aviation Week. Naveo analysis. Constant US$. Forecast from 2023 in 2022 $ AAR Long-term global demand driven currently by Asian markets, in which air travel per capita remains well below western markets © 2023 AAR CORP. All rights reserved worldwide. 22 222#23Government market Defense spending seeking to counter great-power aggression Distribution of 2022 military spending worldwide, by country $2.24T, +3.7% USAF availability rates for fighters and attack aircraft 100 80 50 60 United States 39% % 40 Ukraine 2% Japan 2% South Korea 2% France 2% Germany 3% All other 23% Saudi Arabia 3% UK 3% China 13% India 4% Russia 4% Source: SIPRI 20 0 2005 Source: Congressional Budget Office Goal Air Force DoN 2010 2015 2020 . ⚫ Global tensions causing need for increased military posturing and defense spending . • Allies' and enemies' defense spending increasing - growing logistics requirements challenging European and Indo-Pacific nations . • USAF fleet readiness significantly below targets • Focus on developing new technologies to counter peer competitors • U.S. government seeking to sustain fleets on tighter budget Large government market with customer demand for efficient sustainment solutions AAR © 2023 AAR CORP. All rights reserved worldwide. 23#24Government market AAR well-positioned to support tighter U.S. sustainment budget environment • AAR long-term fleet support programs utilizing commercial best practices provide U.S. military with cost effective solutions • AAR used serviceable material solutions combined with recent DoD procurement legislation provide significant savings opportunities to U.S. government to achieve readiness targets within a constrained budget environment AAR new parts distribution supports both U.S. Defense Logistics Agency through Captains of Industry status and foreign militaries Constrained sustainment funding creates opportunities for AAR to offer cost effective solutions AAR © 2023 AAR CORP. All rights reserved worldwide. 24#25Global expertise and reach Customers in over 150 countries North America Headquarters and warehouse near Chicago's O'Hare International Airport; airframe MRO network; component repair; landing gear overhaul; Mobility Systems United Kingdom Parts Supply sales office in London's Heathrow Airport; Integrated Solutions - commercial and Parts Supply team in Gatwick Europe Component repair in Amsterdam; warehouse network includes Brussels and Hanover serving EMEA; sales office in Paris Middle East Warehouse and sales office in Dubai serving EMEA; Integrated Solutions - government Asia Sales office in China; Regional sales office in Singapore; warehouse and engineering for interior modifications Australasia Warehouse in Auckland; sales office in Melbourne Central and South America Sales office supporting customers in Latin America; Integrated Solutions government - AAR Corporate headquarters Repair & Engineering Parts Supply Integrated Solutions - commercial Integrated Solutions - government Mobility Systems Trax Over 60 AAR sites around the world © 2023 AAR CORP. All rights reserved worldwide. 25#26Highly-diversified customer base with longstanding relationships 15+ year relationship with each of top 10 customers Commercial airlines Cargo airlines OEMs AIRBUS BOMBARDIER Collins Aerospace AIR CANADA AIR NEW ZEALAND Alaska allegiant American Airlines 中國東方航空 CHINA EASTERN CHINA SOUTHERN AIRLINES A DELTA flydubai ATLAS AIR ATSG Air Transport Services Group, Inc. DHL FedEx (SF) EXPRESS 順豐速運 STAR AIR EATON Powering Business Worldwide" GE Aviation Honeywell JAL JAPAN AIRLINES ups Regional airlines LOCKHEED MARTIN Jet2.com Lufthansa Southwest UNITED VOLOTEA NORTHROP GRUMMAN AIR CANADA & Jazz * MESA AIRLINES REPUBLIC AIRLINE SkyWest Pratt & Whitney A United Technologies Company Raytheon Government United States Air Force (USAF) United States Navy (USN) United States Army (USA) International Narcotics and Law Enforcement (INL) Colombian Air Force Japan Ministry of Defense (JMOD) Norway - Royal Norwegian Air Force (RNAF) Royal Netherlands Air Force (RNLAF) United Kingdom Ministry of Defence (UK MOD) AAR © 2023 AAR CORP. All rights reserved worldwide. 26 26#27Parts Supply: Used Serviceable Material Sal Marino Senior Vice President, Used Serviceable Material AAR Doing It Right#28AAR Sal Marino Over 30 years of aviation experience Joined AAR in 1994 Promoted to Vice President of GE Engine Products in 1999 Promoted to Vice President of AAR Aircraft Turbine Center in 2005 with responsibility for all commercial engine product Promoted to Vice President of AAR's Airframe and Engine Trading group in 2014 Named Vice President, Parts Supply and corporate officer in 2017 Holds AAS in Aviation Flight and BS in Aviation Management, as well as a commercial instrument and multi-pilot instrument rating © 2023 AAR CORP. All rights reserved worldwide. 28#29Parts Supply: Used Serviceable Material Overview Key offerings . FY23 breakdown Used serviceable engine and airframe parts supply Total Parts Supply segment sales Airframe • • Whole engine and aircraft sales and leasing Engine and aircraft management and exchange Focus platforms: CFM56-5B/7B (737NG/A320) - V2500-A5 (A320) - PW2000 (757) - Rolls-Royce RB211 (757) - PW4000 (747/767) - - CF6-80 (widebody) Boeing and Airbus AAR USM Distribution Engines Dual-Use Passenger Cargo Airbus Other RR Boeing IAE CFM GE P&W Largest independent USM supplier globally Key customers ATSG AIR TRANSPORT SERVICES GROUP ▲ DELTA FTAI AVIATION UNITED MTU Aero Engines © 2023 AAR CORP. All rights reserved worldwide. 29 29#30Parts Supply: Used Serviceable Material What we do Asset selection Asset sourcing New technology (19% of installed base) Mid-technology (76% of installed base) Old technology (5% of installed base) Industry relationships /AAR reputation GE PW LEAP GTF CFM56 V2500 -5B -A5 CFM56 -7B CF34 PW PW 4000 2000 CF6 -80C2 RB211 -535 AAR focus CF6-80A CFM56 -3/5A CF6-50 < 10 years Maturity cycle 10-25 years Source: Cirium; y-axis represents annual platform spend, bubble size represents fleet size 25+ years Robust markets Exclusive customer contracts Legacy product expertise AAR • A320/737/CFM56-12,000+ aircraft • A320/V2500 - 3,000+ aircraft PW2000-through CY28 • • CF6-80-through CY28 • PW4000 • Rolls Royce Operators, lessors, MROS, trading companies Cross-selling across AAR ⚫ AAR global sales org, product lines, tech department, compliance . Digital market platforms Ability to close and fund quickly Analysis and evaluation Investment evaluation • Asset maintenance documentation ⚫ Cash flow projections and detailed valuation analysis Target margins and IRR Financial performance review ⚫ Part pricing based on market and return expectations Results reviewed and compared to investment expectations • Action quickly taken to liquidate investment if market changes © 2023 AAR CORP. All rights reserved worldwide. 30#31Parts Supply: Used Serviceable Material Value proposition Mi 30-50% savings over OEM prices Non-OEM, non-airline alternative Highly experienced with leading technical capability Speed, flexibility, and financial strength Customer confidence and trust Digital intelligence and transacting AAR © 2023 AAR CORP. All rights reserved worldwide. 31#32Parts Supply: Used Serviceable Material Key achievements since 2019 Investor Day 1 Secured long-term, capital-light, dedicated supply of CFM56 material 2 3 4 Drove cultural change with customers that have not historically bought USM Took market share and repositioned inventory for post-pandemic growth Partnered with AAR Integrated Solutions to support government customers AAR WK1 WJ1 © 2023 AAR CORP. All rights reserved worldwide. 32 32#33Parts Supply: Used Serviceable Material Case study: CFM56 partnership with FTAI Aviation (NYSE: FTAI) Leading aviation company with a portfolio FTAI AVIATION of 350+ CFM56-5B and -7B engines, which power the A320 and B737 FTAI commits 40+ CFM56 engines annually to AAR for teardown on an exclusive basis through 2027 FTAI maintains ownership (capital-light model for AAR) AAR uses technical expertise to develop tailored approach for each engine based on condition and history AAR AAR AAR receives recovery of investment in teardown and repair plus incentive- based fee 4 2 AAR manages USM sales and marketing to global aviation aftermarket Includes FTAI for use in overhauls of its existing engines AAR manages engine teardown and parts repair via network of providers, producing pool of USM AAR invests in teardown and repair 3 © 2023 AAR CORP. All rights reserved worldwide. 33 33#34Parts Supply: USM Growth initiatives Continue to drive increased Secure long-term customer supply on acceptance of USM additional key platforms AAR Develop enhanced solutions for Support USG customer's requirement to consider USM aircraft- on-ground End-to-end digital order fulfillment, including via Trax 骡 愈 Mission: Be the most sought-after USM supplier to airlines, MROS, and leasing companies © 2023 AAR CORP. All rights reserved worldwide. 34#35Parts Supply: Distribution Frank Landrio Senior Vice President, Distribution (Interim) AAR Doing It Right®#36AAR Frank Landrio Over 20 years of aviation experience Joined AAR in 2007 as VP of Finance: AAR Aircraft Component Services Promoted in 2009 to General Manager: AAR Aircraft Component Services Promoted in 2010 to Group CFO: Aviation Supply Chain Group Promoted in 2012 to SVP of Strategy and OEM Development CEO of ASAS (Joint venture with Sumitomo) Sr. Vice President Distribution: Interim basis since March 2023 Holds a BBA degree in Accounting and is a Certified Management Accountant (CMA) © 2023 AAR CORP. All rights reserved worldwide. 36#37Parts Supply: Distribution Overview Key offerings FY23 breakdown • ⚫ Distribution on behalf of Total Parts Supply segment sales components OEMs to: - - - Aircraft operators Government customers MROS Third-party logistics / kitting AAR - USM Distribution sales Gov't Distribution Commercial sales Regional Wide Body Narrow Body BA/ GA Commercial 250,000 part numbers sold to over 2,500 customers DEFENSE LOGISTICS Key customers AGENCY 防衛省 MINISTRY OF DEFENSE American Airlines UNITED Lufthansa Technik ▲ DELTA AIRBUS GE Gε GE Celma TURKISH TECHNIC KLM Engineering & Maintenance © 2023 AAR CORP. All rights reserved worldwide. 37#38Parts Supply: Distribution What we do Commercial customers Industry leading provider of factory-new OEM parts to the commercial aftermarket ⚫ Global salesforce, robust warehousing network • 3rd party logistics / kitting services • Government customers Key supplier to Defense Logistics Agency (DLA) . Long-term strategic relationship with DLA through Captains of Industry status Direct parts supplier to foreign militaries AAR Approach Serve as an extension of aerospace component OEMs to expand market share and global reach Leverage highly technical salesforce co-located with aftermarket customers globally Data driven approach to analyze market demand and provide: - Part forecasting - Reduced lead times - Strategic inventory positioning Increased service levels Do not represent competing product lines in same market High concentration of exclusive agreements © 2023 AAR CORP. All rights reserved worldwide. 38#39Parts Supply: Distribution Value proposition &l Data-driven, market intelligent sales strategies Underpinned by connectivity to AAR ecosystem Innovative planning, forecasting & value- added services Global, highly technical sales force Independence: non-OEM / airline alternative Financial strength and flexibility AAR © 2023 AAR CORP. All rights reserved worldwide. 39#40Parts Supply: Distribution Government value proposition . Strategic planning and forecasting: reduced lead times (the largest value-add to the US Government) Improved on-time delivery and product conformity: AAR on-time delivery rate is approximately double that of OEMS Leverage full AAR military capability: AAR-wide consumption data used for forecasting inventory • . Dedicated team of product and market experts: timely and compliant responses to requirements AAR is the only non-OEM member of the Captains of Industry (COI) Long-term strategic relationship with Defense Logistics Agency (DLA) to provide total global supply chain support to U.S. Department of Defense and U.S. allies Ability to enter into customer direct agreements: ship material directly to services/bases, effectively skipping DLA Wider service offerings than OEM COIs: investment in inventory, DLA depot logistics support, multi-year pricing AAR © 2023 AAR CORP. All rights reserved worldwide. 40 40#41Parts Supply: Distribution Key growth markets Foreign Military Targeted markets • Asia Pacific (Japan, Korea and Thailand) • Europe (incl NATO) • Middle East (Saudi Arabia & UAE) • F15 & F16 Platforms • E2D • C130 Parts & capabilities ⚫ Filters • Electronic indicators . Engine accessories • Spare parts AAR Business & General Aviation • USA • UK • Germany >>> Electronics • EMEA & APAC expansion of existing lines • Unmanned drones and VTOL OEMs Australia Bombardier • Cirrus Gulf Stream Textron • De-Ice and specialty heating • • Landing gear; wheels & brakes Interiors • Switches and indicators ⚫ MIL-Aero OEMs • Contract manufacturers • Electromechanical and Interconnect products • Engine accessories © 2023 AAR CORP. All rights reserved worldwide. 41#42Parts Supply: Distribution Key achievements since 2019 Investor Day 1 Added new distribution lines: GE Unison, Raytheon (Pratt & Whitney), TransDigm, Parker Aerospace 2 Entered new end-markets: Business & general aviation with exclusive product lines (Collins De-Ice and Ontic) 3 Increased efficiency: Investments in digital tools, including pricing and customer quoting 4 Expanded service offerings: Captains of Industry umbrella contract for DoD and 3rd party logistics services and government source inspections AAR WK1 WJ1 © 2023 AAR CORP. All rights reserved worldwide. 42#43Parts Supply: Distribution Investments in eCommerce • . Greater demand capture through improved Electronic Data Interchange and auto-quote functionalities Real-time, dynamic market-driven pricing tailored to OEM and customer Increased visibility and transparency for AAR Product Line and Sales teams XX PAARTS Store An AAR Platform AL 64 10-360840-1 Search Results 10-360840-1 10-360840-1 IGNITER Condition: Factory New Fulfilled by: AAR Parts Supply - OEM Solutions Commercial EDI Exceptions Tool Unresolved 10,388 Resolved 18,482 • More seamless customer experience • Better ability to reach BGA customer base Condition In Stock 0 MOO-2 On Order OEM Lead Parts Catalog Select OEM Customer Pricing Training Documents EDI Exceptions Tool Customer Pricing View by: FSC PART 1,189 Customer Pricing by Part Description Y EXCITER FSC Y Part Number Part Catalog Management 46470-1 Resolve Selected Orows selected KO 13895 INSULATOR Training Documents ☐ Action DIV ↑↓ Y RFQ Date Y Test Pricing Customer Name ↑↓ 46741 LEAD 10-630350-1 ☐ Resolve 1 07/13/2023 EDI Exceptions Tool Pricing Export Tool 10-111195 IGNITER FLTRASSBY Catalog Management кож Test Pricing ☐ Resolve 1 07/13/2023 Resolve 07/13/2023 ☐ Resolve 1 07/13/2023 В FSC Name Y AAR® Optimized customer experience, higher volumes, cost efficiency © 2023 AAR CORP. All rights reserved worldwide. 43#44Parts Supply: Distribution Our journey: sales growth through consistent addition of new lines EATON Powering Business Worldwide LORD EATON Powering Business Worldwide Raytheon Technologies +300% sales growth Raytheon Technologies Raytheon Technologies Raytheon Technologies D Druck TRANSDIGM EATON Powering Business Worldwide GPP Viasat ONTIC BASF Gε We create chemistry CRANE AEROSPACE & ELECTRONICS AMETEK® AMETEK® FY12 FY13 FY14 FY15 FY16 Note: Logos represent new distribution lines added in that year AAR® FY17 FY18 FY19 FY20 GROUP INC. (GE) Raytheon Technologies NORTHROP GRUMMAN TRANSDIGM GROUP INC. POLYMER SOLUTIONS INTEGRATED ONTIC ONTIC OTTO® Expect Excellence. AERO DESIGN LABS FY21 Ⓡ KI LING W WOODWARD FY22 FY23 Consistent track record of growing market share © 2023 AAR CORP. All rights reserved worldwide. 44#45Parts Supply: Distribution Growth initiatives Secure new and expand existing OEM distribution agreements AAR Increase business & Expand eCommerce, Expand general foreign aviation military sales offering opportunities for capabilities Offer OEMs retrofit and competitive displacement including via Trax 粗 Mission: Be a value-added, data driven, customer centric growth driver for our OEM partners © 2023 AAR CORP. All rights reserved worldwide. 45#46Repair & Engineering Tom Hoferer Senior Vice President, Repair & Engineering AAR Doing It Right#47AAR Tom Hoferer Over 30 years of aviation experience Joined AAR in 2023, VP Repair & Engineering USAF/Air National Guard Retired Chief Master Sergeant Served as President of GE Aerospace's Unison Industries, a global leader in aircraft engine component solutions Held various leadership positions at GE Aerospace Holds MBA from the University of Cincinnati Carl H. Lindner College of Business and BS in Industrial Engineering from the University of Cincinnati © 2023 AAR CORP. All rights reserved worldwide. 47#48Repair & Engineering Overview • Key activities Airframe heavy maintenance Landing gear overhaul via Miami facility Component repair via facilities in New York and Amsterdam . • Interior modification engineering and design PMA parts Manage relationships with 8 Eagle Career Pathways schools to bolster labor pipeline AAR $533M FY23 sales Component Engineering Landing Gear Airframe Government Commercial #1 Independent North American MRO Key customers AIR CANADA Alaska. ▲ DELTA Southwest❤ UNITED AIR STEMS UNITED STATES AIR FORCE © 2023 AAR CORP. All rights reserved worldwide. 48 48#49Repair & Engineering What we do Airframe MRO Six hangars providing maintenance, repair, and overhaul (MRO) services "Heavy checks” performed every ~2 years • Nose-to-tail lines of maintenance ☆ Support primarily narrow-body Airbus, Boeing, and Embraer regional aircraft Landing Gear Overhaul Full-service landing gear maintenance provider with complete wheels and brakes capability Almost every major commercial and government aircraft type Inspections, plating, machining, NDT, engineering, assembly, bushings • Component Repair Test, repair, overhaul, and perform scheduled maintenance on 15,000+ rotable components • Avionics Electronic Bleed Air System • • APUs Electro-mechanical • Fuel • • Gearbox Generators Hydraulics Pneumatics Instruments • (EBAS) for 737 MAX . Engineering ⚫ Aircraft interior reconfigurations and modifications Design and integration Engineering and certification PMA parts development Candidate identification leveraging part utilization data Re-engineering of select parts >> AAR © 2023 AAR CORP. All rights reserved worldwide. 49 49#50Repair & Engineering Facility overview 2 3,300 employees Oklahoma City Regional & narrow body MRO ⚫ 300,000 SF * | 12 sites {}}} + #1 MRO in North America 4.6M+ labor hours 750+ aircraft per year Airframe Maintenance Component Repair Landing Gear Engineering Services Indianapolis Miami Rockford Narrow body MRO • Narrow body MRO • Narrow body MRO . ~800 landing gears serviced per year Trois-Rivières Narrow body & regional MRO 367,000 SF • 226,000 SF ⚫ 200,000 SF • 143,000 SF 2,500 technicians Windsor Narrow body MRO 30+ ATA Chapters New York Commercial & military component repair 15,000+ components repaired Amsterdam Commercial & miliary component repair • 150,000 SF . Landing Gear MRO ⚫ 150,000 SF ⚫ 80,000 SF • 150,000 SF Note: figures for fiscal 2023; Engineering locations in Indianapolis and Singapore, and MRO joint venture in India, not included in table AAR © 2023 AAR CORP. All rights reserved worldwide. 50 50#51Repair & Engineering Value proposition 18 ☐ Large network with customer-focused solutions Quality workforce performing reliable repairs Digital investments to improve efficiency Y Vertical capabilities creating one-stop-shop for all processes AAR Innovative design and PMA part solutions Materials sourcing from AAR Parts Supply © 2023 AAR CORP. All rights reserved worldwide. 51#52Repair & Engineering Key achievements since 2019 Investor Day 1 Retained and enhanced skilled workforce 2 Optimized footprint and rationalized product lines AAR 3 Focused on narrowbody market and anchor customers 4 Drove further internal and external emphasis on safety AAR OAAR © 2023 AAR CORP. All rights reserved worldwide. 52 52#53Repair & Engineering Workforce development through Eagle Career Pathway Program Military Skillbridge Sheet metal programs AAR Fellowship EAGLE schools AAR EAGLE Career Pathway Program programs Legislative initiatives x AAR® National apprenticeships Choose Aerospace High school programs State grant programs Airline flow through programs • • Focused on developing talent to meet aircraft maintenance technician demand Program participants focus on five core values: Ethics, Airworthiness, Greatness, Leadership and Engagement 8 current Eagle Pathway schools / >2,000 graduates since program inception Fellowships awarded to students enrolled in aviation maintenance programs to cover tuition and other costs Fellows mentored and monitored, and guaranteed interview in last term of school Skilled labor pipeline development © 2023 AAR CORP. All rights reserved worldwide. 53#54Repair & Engineering Miami airframe MRO facility expansion AAR partnering with Miami Dade Aviation Department (MDAD) to build 114K sq. ft. three-bay hangar with back shops - Will expand facility by 33% from nine aircraft slots to 12 AAR N • . • Expected to create more than 250 new jobs in market with favorable labor market dynamics Received customer commitment for work in new hangar as demand exceeds current network capacity Expect to break ground in Q2 FY24; hangar construction duration ~24 months Expected cost of $50M to be reimbursed by MDAD Potential for further expansion at other existing network locations Expansion to meet customer demand in key market Note: MDAD to reimburse costs up to $50 million AAR © 2023 AAR CORP. All rights reserved worldwide. 54#55Repair & Engineering "Paperless" airframe maintenance • • Transforming airframe MRO with AAR's new "paperless" software Electronic work card that improves labor efficiency and reduces aircraft turnaround time Custom application developed by AAR Implementation in process, expected to be complete in FY24 ށ + < https://concourse.aarcorp.com/staar/work-cards By N/A N743A-2 Ar Defense Systems & Logistics Work Scope A-CH Completed Cards 42/90 (46%) Search (ex: 4501018-1000. Hours Consumed 462/316(146.00%) 48 27 21 Routing Non Routine Total Remaining Cards In Work Projecta Status = Work Order Zone-Item Documents READY ✓ To-work Nonroutine 3501796 1 NRC Evaluation Flight Hours N/A Skill F Description 0000-0007 A/P 5 Over Hours Q Day of Check Cycles N/A Induction 03/20/2023 1 Nearing Over Hours A o 15/30 Target Delivery 04/19/2023 42 Maintenance Complete Contract Group Time on Card DOCUMENT ALL AIRCRAFT MOVEMENT TO... 450 211/0h (0%) * READY Nonroutine INSTALL PITOT STATIC Q To-work 3501796 1000-0001 A/P COVERS UPON.. 450 4.06/0h (0%) ☆ Inspection Queue READY Routine 3501795 1000-0002 To-work Kickback Cus Record Queve Work Package Maintenance WASTE TANK WATER SEPARATOR 000 3.53/0.15h (2353%) ☆ READY Nonroutine 3501796 AAR-ASR FORM PVI-001 0000-0008 INS 450 0/0 (0%) ☆ POST VISIT I... To-work HOLD Routine 3501795 INSTALLATION OF ARINC 2000-0020 R/E 000 40.55/9.95h (407%) ☆ 750 VHF DIG... Ops-check READY Nonroutine 3501796 9000-0001 A/P COMPLY WITH SCRAP LOG 450 0/0 (0%) My Work To-work Q → HOLD Ops-check Routine 3501795 2000-0021 R/E NAVIGATION-ENHANCED GROUND PROXIM 000 325/1h (325%) * MRO MB READY Nonroutine 2501706 0000-0009 A/P SUPERVISOR STANDBY 450 7.03/0h (0%) ☆ AAR AAR OAR 나 AAR® Delivers labor efficiency and improved aircraft turnaround time © 2023 AAR CORP. All rights reserved worldwide. 55 4 Clocked-in Techs 0 My Pinned Cards#56Repair & Engineering PMA parts initiative • Focused on reducing AAR's component repair and overhaul costs through Parts Manufacturer Approval (PMA) parts development and usage • Invested in dedicated engineering team . • • Opportunities identified by leveraging part utilization data, engineering expertise and internal repair capabilities Key OEM relationships considered prior to PMA development Partnering with key customers to offer cost-reducing repair options Prioritizing internal cost benefits with opportunity for third party sales over next several years Provides cost reduction in near-term and third-party sales in longer-term DAAR AAR © 2023 AAR CORP. All rights reserved worldwide. 56 99#57Repair & Engineering Growth initiatives Expand Airframe MRO in areas with critical mass AAR Scale PMA Expand Component Repair capabilities Implement Grow industry- leading Eagle "Paperless" Career Pathways Program parts initiative airframe maintenance X Mission: Be the preferred independent third- party MRO providing high-quality, flexible solutions for commercial and government markets © 2023 AAR CORP. All rights reserved worldwide. 57#58Integrated Solutions Nicholas Gross Senior Vice President, Integrated Solutions AAR Doing It Right®#59AAR Nicholas Gross Over 20 years of aerospace and defense experience Prior service in the U.S. Air Force Joined AAR in 2016 as Vice President, Integrated Solutions Government Named Vice President, Integrated Solutions, and corporate officer in 2019 Holds an MBA from Northwestern University - Kellogg School of Management and a BS in Business Administration from Troy University © 2023 AAR CORP. All rights reserved worldwide. 59#60Integrated Solutions Overview Key offerings ⚫ Power/ Repair by the Hour Component Support $547M FY23 sales Comprehensive parts and repair-based offerings • . Contractor Logistics Support Performance Based Logistics Supply Chain & Third-Party Logistics Focus platforms: P-8 Government Air Ops Commercial - B737 - C-40 - B777 Maintenance - F-16 - A320 Supply Chain - - C-130 UH-60 - E-Jet AAR SAPARTM MENT DEPARTME UNITED CHINA DEPARTA Key customers OF STATE OF SOF THE AMERIC AIR F MCMXLVI STATES OF AMERICA STATES OF OF AMER THE FORCE AIR CANADA € AIR NEW ZEALAND flydubai © 2023 AAR CORP. All rights reserved worldwide. 60#61Integrated Solutions What we do Government: Contractor Logistics Support Contracted total platform sustainment managing end-user fleets across all aspects of flight operations • • Provide all levels of maintenance, engineering, and modifications Provide tip-to-tail supply chain support Operate government owned aircraft Government: Performance Based Logistics Provide on demand material to government and military end users - direct to the point of use • • Develop integrated supply chains to achieve forecasted demand Qualify and diversify vendor base to enable material availability Develop IP on non-standard repairs AAR Commercial: Power-by-the-Hour Component Support Material component availability on a flight hour basis to enable fleet readiness ⚫ Invest and position stock to ensure point of use availability around the world Manage a global network of repair suppliers to maintain assets • Establish long-term agreements to prevent shortages Government: Supply Chain & Third-Party Logistics Establish supply base consistent with end user needs and manage warehouses in strategic locations Control, manage, and maintain billions of dollars of US Government material Distribute assets to directed locations Oversee import/export of goods around the world © 2023 AAR CORP. All rights reserved worldwide. 61#62Integrated Solutions Value proposition Commercial best practices applied to government customers Substantial savings relative to alternatives Global reach to support customers Skilled and empowered talent Tailored solutions to optimize fleet readiness AAR Through-life support of systems and aircraft © 2023 AAR CORP. All rights reserved worldwide. 62 22#63Integrated Solutions Key achievements since 2019 Investor Day AAR 1 Awarded and stood up new Air Force approved F-16 depot in Poland 2 3 Drove the adoption of legislation directing the use of Used Serviceable Material in commercially derivative platforms Sourced, modified and sold six used aircraft to Govt end-users demonstrating the value proposition of the aftermarket 4 Restructured power-by-the-hour portfolio to improve performance and reduce risk, and create foundation for selected additional growth © 2023 AAR CORP. All rights reserved worldwide. 63#64Integrated Solutions F-16 maintenance, modifications and upgrades for U.S. Air Force in Europe Infrastructure Scalable operational capability Established F-16 MRO in 8 months Established MRO facility in Poland, aligned with USG planning requests Staffing Capable, expert technician team in place at AAR's facility Operations in practice 7 aircraft in flow USAF Engineering continues to champion AAR's depot / SLEP approach as an industry-leading best practice, emphasizing workmanship and quality on maintenance work. Coordination Key relationships in place with local stakeholders to support / enable operational coordination Compliance Infrastructure and staffing approach developed according to USAF and DCMA standards Service life extension program Post-block repair Avionics modifications Pre-block structural repair Other workload Force enabler for global F-16 operations AAR® © 2023 AAR CORP. All rights reserved worldwide. 64#65Integrated Solutions National Defense Authorization Act creates additional USM opportunity Recent legislation included in National Defense Authorization Act directs the acquisition and use of Used Serviceable Material for all commercial derivative aircraft and engines Select examples of commercial derivative airframes and engines MILITARY AIRCRAFT COMMERCIAL DERIVATIVE COMMERCIAL DERIVATIVE AIRFRAME ENGINES VC-25 747 CF6-80 KC-46 767 PW4000 P-8 737 CFM56 C-40 737 CFM56 C-32 757 PW2000 C-17 None PW2000 Potential $200M+ annual market opportunity C-5M None CF6-80 U.S. Air Force recently established KC-46 Initial Spares contract vehicle for the procurement of USM • ⚫ First of its kind contract enabling USM on a new platform . Offering immediate and significant material savings to the Air Force • AAR is one of the awardees on contract AAR © 2023 AAR CORP. All rights reserved worldwide. 65 59#66Integrated Solutions Growth initiatives Enhance Expand client facing AAR tools & drive increased Continue to across offerings access to data USG Further expand acceptance of government markets into military- USM Secure long-term specific 粗 contracts to airframes support key platforms AAR Mission: Be the leading independent provider of integrated aftermarket sustainment solutions © 2023 AAR CORP. All rights reserved worldwide. 66#67Trax aviation software Jose Almeida President, Trax Andrew Schmidt SVP, Digital Services & Trax AAR Doing It Right#68Leadership bios Jose Almeida (President, Trax) Andrew Schmidt (SVP, Digital Services & Trax) Founded Trax 1997, saw need for a windows-based MRO ERP system... Y2K compliant and better user interface Rapidly grew Trax as customer felt assured by Y2K compliance and were elated with non-green- screen GUI AAR | Trax First fully cloud-based MRO ERP, eMRO Followed this with first full suite of "paperless" mobility apps, eMobility (16 apps and growing) Sold Trax to AAR and now working on automating MRO with Al Began career as a flight test engineer at McDonnell Douglas Partner at AT Kearney and Oliver Wyman; Led Aerospace Practice at Oliver Wyman Joined Macquarie Capital to form Taurus Aerospace Joined AAR in 2010; started Digital Solutions group in 2014 Co-led Seabury Capital's Private Investment Group, launched in 2018 Rejoined AAR this year after supporting Trax acquisition AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 68#69Trax company overview Leading provider of mobile and cloud-based software for airlines, other aircraft operators and MROS 138 customers with an average tenure of 10+ years Products increase maintenance efficiency, improve asset utilization and streamline information flow between airlines, lessors & MROS Software creates the regulatory ✓ system of record required for airlines and lessors ~110 employees Competitive advantages Product Web-based @mro Functionality Web-based ERP for aircraft maintenance and fleet management (21 modules) Real time transaction entry and information availability Suite of 16 iOS and web-based apps (role-based) @mobility Mobile | Role-based Trax v15 Paperless Offline capability Services Hosting • Original windows-based ERP Supported, but no longer offered to new customers • Implementation & data migration Integration with Trax customers' existing systems • 24/7 support • Complete infrastructure capability with option to host all three solutions in the cloud AAR | Trax Trax will remain independent and maintain its own identity in the market AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 69#70What does Trax do for its customers? eMRO for aircraft maintenance & fleet management Turnkey software supports all aspects of maintenance at airlines, government aircraft operators and MROS iOS and Web Apps to support most roles ☆ ☑ Collo Task AeroDox QuickTurn Visual Check Control Materials purchasing Maintenance management Technical management علوم 介 CELED Line Control Content Control EzStock Production Control $ ர Quality management Financial management Shop Control Customer Portal PilotLog CabinLog 合 AAR | Trax AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 70 70#71Customers and market Used by over 138 individual airlines, government operators, and MROS Supports over 5,000 aircraft in operation today (excludes MROs) • In the hands of and on the desktops of over 62,000 users Used by over 8,500 parts and supply chain personnel AAR | Trax Customers in 35 countries Alaska, jetBlue Azul** spirit virgin atlantic t transavia QATAR القطرية AIRWAYS TURKISH SIA ENGINEERING COMPANY TECHNIC Jetstar ATLAS AIR FEDERAL AVIATION ADMIRATION Federal Aviation Administration sabena technics DHL= AAR æ AirEuropa volaris Ramco Ultramain IFS A leading independent market position ~45% of market is still on legacy systems ~23k commercial Legacy ERP2 jets¹ TRAX Sceptre³ AMOS Maxi Merlin³ Notes: (1) 2022 AW&ST Fleet Database / Trax & Seabury Capital analysis, (2) Includes internally developed systems and smaller fleets with unknown systems, (3) Sceptre and Maxi Merlin (Wizard) developed in 1980s and still being used by major US Airlines AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 71#72Strategic vision Unifying strengths AAR + Trax Integrated maintenance ecosystem Enhanced end-to-end solutions Powerful supply chain ecosystem Improved customer experience E Data-driven insights and innovation AAR's parts and MRO experience plus Trax's software creates basis for a comprehensive offering Maintenance processes are streamlined by integrating parts supply & MRO services with management software . Software enabled supply chain provides plug-and-play service for Trax, AAR and other MRO/OEM customers Compatibility and seamless integration creates a reliable and cost-efficient market in the aviation industry Seamless and efficient experience for airlines and MRO's One-stop solution reduces complexity and operational challenges associated with buying parts and using MRO services AAR's MRO and parts data/ experience can fuel TRAX's software enhancements Trax's data analytics can identify trends and opportunities for AAR and other MROS to innovate in parts supply and services By combining AAR's MRO industry expertise with Trax's software, we are poised to deliver unparalleled parts supply and maintenance services AAR | Trax AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 72#73Strategic vision One example: new parts ecosystem • Fewer aircraft delays for parts Trax's embedded market position helps foresee maintenance needs and parts replacements. AAR and other supplier informed readiness with parts ensures that necessary replacements can be done just in time. Aircraft downtime is minimized, ensuring continuous operations. The "buy-now" button for instant access One-click access for customers to a streamlined ordering process for parts. Rapid response and fulfilment through a curated Trusted Supplier Network (TSN), enabled by real-time data from Trax. • AAR's leadership position forms the foundation for a new parts platform. Vision: A new parts ecosystem Trax users see integrated virtual inventory from TSN Mechanics Material planners • Integrated with . mobile apps and buyer queue on Trax desktop • Foundational features Only parts with all necessary & screened documentation . Trax Buyers Only suppliers that meet minimum customer ratings thresholds With AAR's agile parts supply expertise and Trax's intelligent software, we're forging an innovative alliance that elevates aviation efficiency, safety, and customer satisfaction AAR | Trax AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 73#74Growth initiatives Bolster Trax's back- office functions to support scale: quality, customer support, accounting Co-create products with AAR and other MROS that drive new value for Trax's 62,000+ users: Trusted supplier network and "buy- now" button Roll-out Al-based products that automate maintenance and supply chain in eMRO & eMobility Expand into adjacent service areas that leverage Trax software AAR ARA Mission: Be the leading innovator of MRO software and technology-based solutions AAR CORP. All rights reserved worldwide. Confidential and proprietary document. 74#75Financial overview Sean Gillen Chief Financial Officer AAR Doing It Right®#76AAR Sean Gillen Joined AAR in 2019 in his current role where he oversees the financial, accounting, tax, treasury and investor relations functions Previously served as Vice President and Treasurer at USG Corporation Prior to USG, was employed at Goldman, Sachs & Company in the investment banking area Holds Bachelor of Business Administration from the University of Michigan © 2023 AAR CORP. All rights reserved worldwide. 76#77Historical financial performance Adjusted sales ($M) $2,052 $2,072 $1,991 $1,820 $1,748 $1,652 Adjusted operating income ($M) and margin $115 $105 $90 $149 $115 $69 7.5% 6.3% 5.2% 5.6% 5.0% 4.2% FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Adjusted diluted EPS $2.44 $2.15 $1.87 $1.31 $2.86 $2.38 1.0x 0.7x Net debt / adjusted EBITDA 1.3x 0.7x 0.3x 1.1x FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Note: FY ends May 31; figures reflect continuing operations; see Appendix for reconciliation of non-GAAP financial measures AAR © 2023 AAR CORP. All rights reserved worldwide. 77#78Actions taken have yielded consistent financial improvement Quarterly Adjusted Operating Margin 7.6% 7.6% 7.8% 6.7% 7.0% 6.9% 6.1% 5.0% 5.2% 5.5% Aug-19 4.9% 5.6% 5.9% ill 3.2% 2.5% 4.0% Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 $0.57 $0.64 $0.67 III $0.26 $0.17 Quarterly Adjusted EPS $0.72 $0.69 $0.63 $0.61 $0.52 $0.53 $0.47 $0.37 $0.31 Aug-19 Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Note: FY ends May 31; Adjusted EPS reflects dilution; figures reflect continuing operations; see Appendix for reconciliation of non-GAAP financial measures AAR Feb-23 May-23 ✓ Consolidated footprint to optimize cost base and preferred customer support ✓ Exited underperforming product lines and contracts ✓ Reduced selected headcount $0.75 $0.83 ✓ Eliminated non-essential spend Nov-22 Feb-23 May-23 ✓ Used market dislocation and relative strength to take share ✓ Added differentiated capability © 2023 AAR CORP. All rights reserved worldwide. 78#79Significant progress since 2019 Adjusted sales ($M) Adjusted operating income ($M) and margin $2,052 FY19 Down 3% $1,991 FY23 Up 30% $149 $115 7.5% 5.6% FY19 FY23 Adjusted EPS $2.44 Up 17% $2.86 FY19 FY23 Note: FY ends May 31; Adjusted EPS reflects dilution; figures reflect continuing operations; see Appendix for reconciliation of non-GAAP financial measures Higher margins and earnings on sales that are still below pre-pandemic level AAR © 2023 AAR CORP. All rights reserved worldwide. 79#80Capital allocation framework Maintain flexible balance sheet Organic investment to drive growth Opportunistic acquisitions Return to shareholders • • • • • . • Current leverage of 1.1x net debt / Adjusted EBITDA; S&P BB credit rating Maintain conservative balance sheet; target net leverage ratio of 1.0x - 2.0x EBITDA Max leverage ratio of 3.5x EBITDA Support new business wins in Parts Supply via inventory in USM and Distribution Select airframe maintenance expansion and new component repair capabilities Development of proprietary PMA parts Adherence to strategic filters and financial criteria Focused on expanding in core Parts Supply, R&E, and Integrated Solutions Increase intellectual property in portfolio Initiated $150M Share Repurchase Program in December 2021 Repurchased $92.4M to-date with remaining authorization of $57.6M Will evaluate further usage and expansion based on alternative opportunities See Appendix for reconciliation of non-GAAP financial measures AAR © 2023 AAR CORP. All rights reserved worldwide. 00 80#81M&A priorities and approach Strategic focus areas ✓ Value-added / IP-enabled parts platforms ✓ Additional distribution customers and OEM relationships ✓ Differentiated MRO capability and scale Post- investment review Identification & cultivation ✓ Integrated Solutions – Government past performance ✓ Unique digital / data tools Integration Criteria ✓ Accelerates strategic priorities vs. organic tactics ✓ Growth and/or margin accretive ✓ After-tax IRR exceeds target's WACC ✓ Max net debt / EBITDA of 3.5x within 12 months* * Exclusive of one-time integration costs and inclusive of cost synergies AAR Our Disciplined Approach Due diligence & thesis validation Negotiation & approval Valuation & integration plan © 2023 AAR CORP. All rights reserved worldwide. 81#82Key messages 1 2 Focused portfolio of aftermarket aviation services expected to benefit from market growth and increased market share Operating margin significantly increased since pre-pandemic due to cost discipline and actions to improve underperforming activities 3 Strong balance sheet enables capital allocation across high-return organic investments, acquisitions, and share repurchase 4 Continued growth, margin expansion and capital allocation expected to drive increased shareholder value AAR AAR World Headquarters AAR © 2023 AAR CORP. All rights reserved worldwide. 82#83Closing comments John M. Holmes Chairman, President and Chief Executive Officer AAR Doing It Right®#84Key takeaways AAR 2 Fundamentally improved the business since pre-pandemic and added greater transparency Large and growing markets 3 AAR Multiple levers to take market share 4 Continued margin expansion opportunity 5 History of aerospace aftermarket resiliency to macroeconomic conditions. 6 Strong balance sheet supports growth investments and/or capital return to shareholders © 2023 AAR CORP. All rights reserved worldwide. 84#85Q&A AAR Doing It Right®#86Appendix AAR Doing It Right®#87Non-GAAP financial measures This presentation includes financial results for the Company with respect to adjusted diluted earnings per share from continuing operations, adjusted sales, adjusted EBITDA, adjusted operating income and net debt, which 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 are relevant and useful for investors as they illustrate our actual operating performance unaffected by the impact of certain items. When reviewed in conjunction with our GAAP results and the accompanying reconciliations, we believe these non-GAAP financial measures provide additional information that is useful to gain an understanding of the factors and trends affecting our business and provide a means by which to compare our operating performance against that of other companies in the industries we compete. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Adjusted EBITDA is income from continuing operations before interest income (expense), other income (expense), income taxes, depreciation and amortization, stock-based compensation and other items of an unusual nature including but not limited to business divestitures, workforce actions, subsidies and costs, impairment and exit charges, facility consolidation and repositioning costs, investigation and remediation compliance costs, significant income tax adjustments, gains on asset sales, purchase accounting and legal settlements, strategic project costs and significant customer events such as early terminations, contract restructurings, forward loss provisions, bankruptcies and credit charges. Adjusted operating income is adjusted EBITDA gross of depreciation and amortization and stock-based compensation. Pursuant to the requirements of Regulation G of the Exchange Act, we provide tables that reconcile the above-mentioned non-GAAP financial measures to the most directly comparable GAAP financial measures in the Appendix at the end of this presentation. The Company is not providing a reconciliation of forward-looking adjusted operating margin, net leverage ratio and annual adjusted EPS growth to the most directly comparable forward-looking GAAP measure because the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, unusual gains and losses, the ultimate outcome of pending litigation, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. Each of the adjustments has not occurred, are out of the Company's control and/or cannot be reasonably predicted. For this reason, the Company is unable to address the probable significance of the unavailable information. AAR © 2023 AAR CORP. All rights reserved worldwide. 87#88Non-GAAP financial measures Adjusted sales, adjusted operating income and adjusted operating margin ($ in millions) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Sales $541.5 $560.9 Contract termination/restructuring & loss provision, net Customer bankruptcy charge $553.1 9.8 $416.5 7.5 $400.8 1.9 $403.6 Adjusted sales $541.5 $560.9 $562.9 $424.0 $402.7 (2.3) 0.4 $401.7 $410.3 1.5 $437.6 (2.4) $455.1 1.0 $436.6 (2.5) $452.2 (0.2) $476.1 (1.2) $446.3 0.1 $469.8 $521.1 $553.3 $411.8 $435.2 $456.1 $434.1 $452.0 $474.9 $446.4 $469.8 $521.1 $553.3 Operating income Investigation and remediation costs Trax acquisition costs Customer bankruptcy and credit charges Government subsidies Facility consolidation and repositioning costs Russian bankruptcy court clawback judgement Contract termination/restructuring & loss provision, net Asset impairment and exit charges Severance and furlough costs Costs related to strategic projects Adjusted operating income Adjusted operating margin AAR $22.8 3.1 $28.1 2.4 $5.3 2.7 ($14.9) $3.2 $21.6 $39.7 $20.7 $15.1 $30.1 $30.3 1.8 1.3 2.8 0.3 0.2 0.8 1.6 $31.4 1.1 $31.2 0.8 $32.4 $34.0 $36.3 1.1 1.2 1.6 1.9 5.1 1.6 0.2 1.3 1.0 2.4 1.0 (0.3) 1.8 (2.8) (11.1) (18.7) (24.6) (1.8) (0.3) (2.5) (1.0) (1.1) (0.7) (0.9) 4.9 2.0 0.4 2.1 0.1 0.1 - 24.7 6.6 2.2 4.5 4.0 (1.4) 6.7 (4.4) (1.1) (0.3) . 1.8 (0.3) 2.3 - 11.0 5.8 1.2 - 2.3 0.6 0.5 0.1 0.7 0.9 0.5 5.0 6.0 2.2 0.1 0.7 0.9 0.8 0.2 0.1 0.1 0.4 0.3 0.7 1.8 (0.2) $26.6 $31.4 $33.2 $13.6 $9.9 $16.0 $20.5 $22.7 $25.0 $26.5 $30.5 $33.1 $30.9 $35.5 $39.8 $43.0 4.9% 5.6% 5.9% 3.2% 2.5% 4.0% 5.0% 5.2% 5.5% 6.1% 6.7% 7.0% 6.9% 7.6% 7.6% 7.8% © 2023 AAR CORP. All rights reserved worldwide. 88 88#89Non-GAAP financial measures Adjusted diluted earnings per share from continuing operations Diluted earnings (loss) per share from continuing operations Deferred tax re-measurement from the Tax Cuts and Jobs Act Investigation and remediation costs (Gain) loss on sale/exit of business/asset Trax acquisition and amortization expenses Contract termination/restructuring & loss provision, net Customer bankruptcy and credit charges (recoveries) Loss (gain) on equity investments Asset impairment charges Government subsidies State income tax benefit Recognition of previously reserved income tax benefits Russian bankruptcy court clawback judgement Facility consolidation and repositioning costs Severance, furlough & pension settlement costs FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 $1.51 $2.11 $2.40 $0.71 $1.30 $2.16 $2.52 $0.49 $0.57 $0.07 ($0.43) ($0.40) $0.41 $0.87 $0.41 $0.31 $0.58 $0.63 $0.66 $0.62 $0.64 $0.62 $0.66 ($0.41) 0.08 0.22 (0.08) 0.10 0.07 0.13 0.44 0.04 0.02 0.21 0.07 0.05 0.06 0.04 0.03 0.06 0.01 0.01 0.42 0.02 0.01 0.03 0.03 0.02 0.01 0.02 0.03 0.04 0.04 0.01 0.01 0.06 0.15 0.14 0.27 0.68 0.20 0.04 0.10 0.02 0.04 0.02 0.04 0.01 0.53 0.15 0.05 0.10 0.04 0.04 0.08 (0.03) 0.02 0.14 (0.09) (0.02) (0.01) (0.01) 0.05 0.05 0.02 (0.01) 0.05 (0.02) 0.03 0.25 0.15 0.07 (0.06) (1.22) (0.10) (0.05) 0.25 0.13 0.02 0.05 0.01 (0.06) (0.24) (0.41) (0.53) (0.04) (0.01) (0.05) 0.01 (0.02) (0.02) (0.02) (0.03) (0.06) (0.15) (0.19) 0.05 0.05 0.02 0.11 0.09 0.01 0.02 0.09 0.01 0.19 0.22 0.07 Gain on settlement of purchase accounting liabilities Gain on legal settlement (0.02) 0.11 0.04 0.01 0.04 0.01 0.01 0.02 0.01 0.15 0.13 0.07 0.01 0.02 0.02 0.01 0.02 (0.02) 0.02 (0.09) Costs related to strategic projects Tax effect on adjustments (a) 0.01 0.02 0.04 (0.09) 0.01 0.01 0.01 0.04 (0.11) Adjusted diluted EPS from continuing operations $1.45 $1.87 $2.44 $2.15 $1.31 $2.38 $2.86 $0.57 $0.64 $0.67 $0.26 $0.17 $0.31 $0.37 $0.47 $0.52 $0.53 $0.63 $0.72 $0.61 $0.69 (0.05) (0.06) $0.75 $0.83 (a) Calculation uses estimated statutory tax rates on non-GAAP adjustments; began reporting tax effects separately in Q3 FY23 AAR © 2023 AAR CORP. All rights reserved worldwide. 89#90Non-GAAP financial measures Adjusted EBITDA ($ in millions) Net income (loss). FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 12 Months Ended Q1 FY20 Q2 FY20 Q3 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q1 FY23 Q2 FY23 Q3 FY23 $56.5 $15.6 $7.5 (Income) loss from discontinued operations (4.5) 58.1 76.6 $4.4 20.4 10.5 $35.8 $78.7 $90.2 $4.4 $14.2 $2.3 ($16.5) ($14.5) $8.2 $28.1 $14.0 $11.5 $20.8 $22.5 $23.9 $22.7 $22.5 $21.8 $23.2 ($3.2) $4.0 $43.7 ($14.5) ($20.5) $5.3 $61.8 $74.4 (0.2) (0.4) 12.7 5.9 0.3 1.5 0.6 Income tax expense (benefit) 25.1 3.5 4.9 5.6 18.2 26.6 31.4 3.4 6.0 0.2 (4.0) (3.8) 6.2 3.0 5.2 12.0 0.7 (0.3) 0.1 (0.4) 4.8 3.9 7.9 8.2 6.6 8.1 8.3 8.0 7.0 6.0 85.5 87.2 22.7 9.0 8.3 8.6 11.3 9.6 Other (income) expense, net 0.9 0.8 2.1 (4.3) (2.2) 0.8 0.2 0.2 0.2 1.5 (0.2) 0.7 (4.4) (0.4) (0.7) (0.3) (1.1) (0.1) (0.2) (0.5) 0.3 1.2 1.4 1.4 1.0 1.7 2.2 $68.8 $89.9 $91.6 $90.9 0.5 (0.3) (0.3) (0.4) 9.8 (1.6) (2.4) 9.4 25.9 28.6 24.8 30.8 31.2 31.0 (2.4) (4.8) (5.8) (2.5) (1.7) (1.9) (0.5) 3.4 Interest expense, net Depreciation and intangible amortization 5.2 7.9 8.5 8.8 4.8 2.3 11.2 2.1 1.8 2.3 2.6 1.6 1.3 1.0 0.9 0.7 0.4 0.6 0.6 1.0 2.0 3.5 4.7 9.0 8.4 8.3 8.3 7.8 6.5 3.9 3.0 2.6 2.6 4.2 7.1 35.7 40.5 42.8 43.7 36.3 33.1 27.9 10.8 11.0 11.0 10.9 9.0 9.2 8.9 9.2 8.9 8.9 7.7 7.6 6.8 6.5 6.9 7.7 43.5 44.1 44.3 41.9 40.1 38.0 36.2 35.9 34.7 31.0 28.6 27.8 Investigation and remediation costs Losses related to sale and exit of business Trax acquisition and amortization expenses Asset impairment and exit charges Contract termination/restructuring & loss provision, net Facility consolidation and repositioning costs Severance and furlough costs Customer bankruptcy and credit charges Government subsidies Russian bankruptcy court clawback judgement Costs related to strategic projects Stock-based compensation 3.5 10.1 4.4 3.7 4.7 3.1 2.4 2.7 1.8 1.3 2.8 0.3 - 0.2 0.8 1.6 1.1 0.8 1.1 1.2 1.6 6.6 8.8 10.5 8.3 8.7 6.2 3.3 1.3 2.6 4.3 4.6 4.2 (2.6) 20.2 1.7 0.7 19.5 - 0.7 - 1.3 0.4 - 0.1 0.4 0.2 19.5 19.5 19.5 0.7 2.0 2.0 1.7 0.5 0.9 - 7.0 1.9 5.1 - 1.9 11.0 7.0 3.5 11.0 5.8 1.2 2.3 0.6 0.5 0.1 - 16.8 18.0 18.0 3.5 2.9 3.4 1.2 0.6 0.1 7.1 31.3 9.3 0.9 2.0 24.7 6.6 2.2 4.5 4.0 (1.4) 6.7 (4.4) (1.1) (0.3) (0.3) 2.3 24.7 33.5 38.0 17.3 13.8 4.9 (0.2) (6.1) 0.6 1.7 - 0.9 4.9 4.5 0.2 4.9 2.0 0.4 2.1 0.1 0.1 0.9 0.9 0.9 6.9 7.3 7.3 2.6 2.3 2.3 0.1 0.8 4.5 0.2 7.1 9.0 2.0 0.1 0.7 0.9 0.5 5.0 6.0 2.2 0.1 0.7 0.9 0.8 0.2 0.1 0.1 1.0 1.9 2.2 12.4 13.7 13.3 3.9 2.5 2.6 1.2 0.4 0.2 12.4 1.6 4.9 1.0 1.5 1.6 0.2 1.3 1.0 2.4 1.0 (0.3) 1.8 12.4 1.8 3.1 4.1 4.7 4.4 3.4 1.0 (0.3) 1.5 (2.8) (56.2) (4.9) (1.6) (2.8) (11.1) (18.7) (24.6) (1.8) (0.3) (2.5) (1.0) (1.1) (0.7) 1.8 (0.9) 1.8 (13.9) (32.6) (57.2) (45.4) (29.2) (5.6) (5.3) (2.8) (2.7) 1.8 0.4 11.0 15.3 13.5 7.3 1.0 9.2 1.8 (0.2) 8.2 13.5 0.4 0.3 0.7 $127.2 $153.4 $171.6 $155.9 $114.6 $156.4 $190.6 4.3 2.8 $41.7 $45.2 3.2 $47.4 (3.0) 2.7 $21.5 $21.6 $27.0 $31.7 $34.3 1.8 2.3 2.4 1.8 (0.2) 3.1 1.6 1.1 2.4 4.1 2.8 3.5 $37.0 $37.0 $39.3 $43.1 $41.8 $44.8 $50.2 $53.8 0.7 1.4 1.4 3.1 5.7 4.7 13.8 15.4 15.0 $176.9 $181.1 $183.1 $135.8 $117.6 $101.8 $130.0 $140.0 $147.6 $161.2 $169.0 3.8 0.7 9.6 - 1.6 1.6 1.6 9.4 8.2 9.2 10.4 12.8 $179.9 Adjusted EBITDA Pro forma for Trax acquisition: Trax adjusted EBITDA for the twelve months ended February 28, 2023 Adjusted EBITDA pro forma for Trax acquisition AAR $8.6 $188.5 © 2023 AAR CORP. All rights reserved worldwide. 00 90#91Non-GAAP financial measures Net debt/ adjusted EBITDA ($ in millions) Total debt FY17 FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 $156.2 Less: cash and cash equivalents Net debt (10.3) $178.9 (31.1) $142.9 $203.3 $198.3 $145.9 $147.8 (21.3) $121.6 (39.9) $163.4 (38.2) $160.1 $208.1 $602.0 $257.0 $222.1 (37.0) (404.7) (107.7) (110.0) (99.2) $171.1 $197.3 $149.3 $112.1 $108.4 $207.6 $135.2 $129.0 $104.5 $104.5 $100.0 $115.0 (51.8) (48.8) (42.7) (40.6) (53.5) $198.0 (44.3) (49.0) $188.0 $272.0 (52.7) (68.4) $83.4 $80.2 $61.8 $63.9 $46.5 $70.7 $149.0 $135.3 $203.6 Trax acquisition purchase price 120.0 Pro forma net debt $145.9 $147.8 $121.6 $163.4 $160.1 $171.1 $197.3 $149.3 $112.1 $108.4 $83.4 $80.2 $61.8 $63.9 $46.5 $70.7 $149.0 $255.3 $203.6 Adjusted EBITDA 127.2 153.4 171.6 176.9 181.1 183.1 155.9 135.8 117.6 101.8 114.6 130.0 140.0 147.6 Net debt to Adjusted EBITDA 1.1x 1.0x 0.7x 0.9x 0.9x 0.9x 1.3x 1.1x 1.0x 1.1x 0.7x 0.6x 0.4x 0.4x 156.4 0.3x 161.2 169.0 179.9 190.6 0.4x 0.9x 0.8x 1.1x Adjusted EBITDA pro forma for Trax acquisition Pro forma net debt to Adjusted EBITDA 188.5 1.35x AAR © 2023 AAR CORP. All rights reserved worldwide. 91#92Non-GAAP financial measures FY23 segment adjusted sales, adjusted operating income and adjusted operating margin Aviation Expeditionary Corporate/ Repair & Services Sales $1,898.8 Services $91.8 Contract termination/restructuring & loss provision, net Adjusted sales 0.1 $1,898.9 $91.8 Other Total Parts Supply Engineering $0.0 $1,990.5 0.1 $0.0 $1,990.6 $818.4 $533.4 $818.4 $533.4 $546.9 0.1 $547.0 Integrated Expeditionary Corporate/ Solutions Services Other Total $91.8 $0.0 $1,990.5 0.1 $91.8 $0.0 $1,990.6 ($ in millions) Operating income $159.4 $7.7 ($33.3) $133.9 $93.7 $35.3 $30.5 $7.7 ($33.3) $133.9 Investigation and remediation costs - 4.7 4.7 4.7 4.7 Trax acquisition costs 2.0 4.9 7.0 2.0 4.9 7.0 Customer bankruptcy and credit charges 1.5 1.5 1.5 1.5 Government subsidies (1.6) (1.6) (1.6) (1.6) Russian bankruptcy court clawback judgement 1.8 1.8 1.8 1.8 Contract termination/restructuring & loss provision, net 2.0 2.0 2.0 2.0 Severance and furlough costs 0.0 0.1 0.1 0.0 0.1 0.1 Costs related to strategic projects (0.2) (0.2) (0.2) (0.2) Adjusted operating income $165.2 $7.7 ($23.7) $149.2 $95.5 $33.7 $36.0 $7.7 ($23.7) $149.2 Adjusted operating margin 8.7% 8.4% 7.5% 11.7% 6.3% 6.6% 8.4% 7.5% AAR © 2023 AAR CORP. All rights reserved worldwide. 22 92