#1Investor Presentation November 2018 AAM#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 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, and Net Leverage Ratio 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#3AAM About AAM AAM AAM is a premier, global leader in design, engineering, validation and manufacturing of driveline, metal forming, powertrain and casting technologies for automotive, commercial and industrial markets Over 75 MANUFACTURING FACILITIES 827 TROLLHÄTTAN TECHNICAL CENTER 2018 SALES TARGET > $7B Over 700 CUSTOMERS Over 25,000 ASSOCIATES AAM is Delivering POWER through world-class quality, technology leadership and operational excellence. AAM 17 COUNTRIES Nearly 90 LOCATIONS 16 ENGINEERING CENTERS 3#4Strong Financial Performance $3.2 SALES $3.9 $3.7 $3.9 2013 2014 2015 Dollars in billions $6.3 =$7.25 2016 2017 2018E Adjusted EBITDA Margin 15.7% 14.6% 13.9% 13.2% 17.6% 16.25- 16.5%** 2013 2014 2015 2016 2017 2018E AAM has been growing sales while delivering industry-leading profitability * For definitions of terms and Non-GAAP reconciliations, please see the attached appendix **Mid point of the 2018 target used for charting purposes AAM 4#5Business Units and Market Leadership AAM I-+-1 DRIVELINE | $4.0B ■ #1 Globally - Full-Size Pickup Trucks and SUV driveline systems ◉ #1 North America and #2 China AWD Systems for crossovers Pioneer of Disconnecting AWD systems METAL FORMING | $1.5B Largest automotive forger in the world #1 Globally - Differential gears, axle shafts, hypoid pinions and ring gears. #1 North America - Transmission gears and CVT pulleys POWERTRAIN | $1.1B #1 Globally Powder metal connecting rods H-I 1-11-1 H Damped gears and rubber isolation pulleys. Viscous dampers for passenger cars #1 North America - Aluminum valve bodies CASTING $900M Leading automotive iron casting operations #1 North America ductile iron casting supplier #1 / #2 North America - Differential carriers and cases, steering knuckles, control arms and brake calipers *Note: Market leadership based on company estimates as compared to other independent suppliers, business unit sales based on estimated 2017 pro forma amounts before eliminations of intercompany sales of approximately $0.5 billion 5#6AAM Growth Opportunities AAM#7New and Incremental Business Backlog $1.5 BILLION: 2018-2020 Backlog by Vehicle Segment Commercial and Other 5% Full-size Light Truck and SUV 25% Passenger Cars 15% Crossover Vehicles 55% as disclosed on January 17, 2018 Backlog by Global Market Asia 20% AAM South America and Europe 15% North America 60% 40% of our New Business Backlog is in markets outside of North America other 5% 7#8Revenue Diversification AAM 2016 Sales by Customer 2016 Sales by Region Other Top 15 Global Other 8% OEMs 6% FCA North Asia 18% America 10% GM 84% Europe 3% 67% Ford 1% AAM 2020E Sales by Customer 2020E Sales by Region Other 3% Other GM Asia 11% 27% 31% North America 76% Europe 10% Other Top 15 Ford 14% Global FCA OEMs 15% 13% Other 3% 2016 Sales by BU Metal Forming 13% Driveline 87% 2020E Sales by BU Casting 12% Powertrain 17% Metal Forming 20% AAM is experiencing diversification and growth in many areas Driveline 51% AAM 8#9China Continues to Drive Growth for AAM AAM China Sales $275 2014 $440 2017 =$700 2020E Current growth driven by: AAM Demand for crossover vehicles, luxury passenger cars and LCVs JV partnerships (Liuzhou AAM and HAAM) New business awards in our backlog: ■ Differential assemblies (SAIC-GM) ☐ ■ Power Transfer Units (Foton, SAIC-GM, CAF) ■ Isolation Pulleys (Geely and Renault) ■ Rubber Dampers (Chery) ■ Transmission Valve Bodies (Wanliyang) ☐ Balance Shaft Assemblies (CAF and SAIC) ■ Transmissions Shafts and Gears (Volkswagen) Connecting Rods (SAIC) Dollars in millions * Includes revenues of unconsolidated joint ventures 9#10Exponential Growth in Europe AAM Europe Sales $100 2014 $480 2017 =$700 2020E Current growth driven by: ➤MPG acquisition ■ Added Metal Forming operations Strong Powertrain presence New business launches ■ Two new e-AAM program launches ■ Global crossover program begins production Growing relationships with Daimler, JLR, Ford, Renault, and BMW AAM Dollars in millions 10#11Global Growth Beyond 2020 60% of AAM's $1.5 billion quoting and emerging business opportunities are outside of North America* ➤ Hybridization will drive additional Powertrain content Increased demand for our e-AAM products to support higher electric vehicle production, especially in Europe and China Increased global Metal Forming presence ➤ Further leveraging joint venture partnerships. AAM AAM's multi business unit strategy for global growth features many innovative technologies * As disclosed in June 2018 11#12Technology Leadership AAM#13AAM Technology Leadership ICE HYBRID ELECTRIC (BEV) AAM ENGINEERING COMPETENCIES Efficiency $ Customer Value Performance/NVH AAM kg Lightweighting ✓ Power Density 13#14EcoTrac™ Continues to Drive Profitable Growth A 2013 Jeep Jeep Cherokee GM 2017 =$800M 2020 GMC $550M in 2018 47% CAGR Terrain/Equinox Ford Currently Launching Edge/Nautilus Cadillac Cadillac XT4 $55M in 2013- AAM recently won its 5th global business award featuring our Ecotrac technology 14#15QUANTUM™ Technology QUANTUM | Features all-new, completely redesigned family of lightweight axles and drive units KEY ATTRIBUTES Industry first technology along with a revolutionary design Significant mass reduction (up to 35%) In combination, additional efficiency and weight reduction can deliver 1% to 1.5% improved vehicle fuel economy Scalable across multiple applications - without loss of performance or power Streamlined manufacturing process for key driveline components AAM QUANTUM LIGHTWEIGHT AXLE TECHNOLOGY BY AM QUANTUM™ in Light Duty Truck TM QUANTUM™M RDU w/ eLSD QUANTUMTM Rear Axle Awarded inaugural Altair Enlighten Future of Lightweighting and Society of Automotive Analysts Lightweighting Innovation awards 15#16Key Fuel Efficiency Trends Benefit AAM Downsized Engines Crankshaft Dampers & Isolation Pulleys Multi-speed Transmissions Balance Shaft Systems 10 Speed Transmission 3 Cylinder Engine Damped Gears AAM Transmission Components Demand for fuel efficiency gains is driving powertrain conversions, leading to additional AAM content-per-vehicle opportunities of over $100 16#17e-AAM Hybrid and Electric Driveline Systems e-AAM driveline systems | Position AAM to benefit from the global trend of electrification 'AAM HYBRID AND ELECTRICI DRIVELINE SYSTEMS BY TM AAM KEY ATTRIBUTES Highly integrated electric motor, gear reduction, & differential Power dense, low NVH, high efficiency design allows for easy integration for multiple vehicle platforms Modular solutions for passenger cars / crossovers to provide economies of scale Optional features for performance and functionality AAM P4 Rear e-Drive unit (Hybrid) AAM P4 e-Drive units (e-AWD BEV) 17#18TIRE P4 TIRE TIRE Hybrid and Electric Vehicle Architectures PO/P1 P2 P3 P4 AAM PO P1 ENGINE TRANS TIRE ENGINE P2 TRANS AXLE ENGINE TRANS P3 AXLE AAM Content TIRE P4 AAM Content Conventional AAM Content New Electrification AAM Content AAM content is featured across all hybrid and electric vehicle architectures 18 AAM Content AAM Content AXLE#19P3 AAM's Capabilities for Hybrid and Electric Vehicles P0, P1 and P2 are fully supported by AAM's conventional content. Our e-AAM investments have been focused on P3 and P4 solutions as growth opportunities. ENGINE TRANS TIRE P3 AXLE Launching eDrive in 2020 P4 AAM TIRE P4 E-Systems Integration TIRE TIRE TIRE P4 Launching eDrive in 2018 Content per vehicle opportunities of $500 - $2,500+ for P3 and P4 applications Conventional AAM Content New Electrification AAM Content 19#20AAM and Electrification | Current State >5% of our 2018 - 2020 Backlog $100M - $200M Revenue by 2021 >$1B Booked Revenue AAM e-AAM is becoming an increasing part of our new business backlog Launching two sizable electrification programs with premium global OEMs Revenues of awarded business through lifetime of the booked programs AAM is benefiting from early investments in electrification 20 20#21AAM and Electrification | Future State RAPID GROWTH Total Addressable Market Estimated TAM for e-Drive units expected to grow from $2 billion today to $10 billion by 2025 $500M* New Business Opportunities Approximately 1/3 of AAM's current $1.5 billion quoted and emerging new business opportunities relate to our e-AAM products across Asia, Europe and North America 25% - 30% Expected Win Rate AAM Based on AAM's technology and customer interest, we expect to achieve our normal win rate on new e-Drive business opportunities We expect e-AAM quoting activity to continue to expand and deliver significant organic growth As disclosed in June 2018 * 21 22#22Financial Overview AAM#233Q 2018 AAM Highlights $1.82B Quarterly Sales 5% YoY Growth $275M Quarterly Adj. EBITDA* $121M Quarterly Adj. Free Cash Flow* AAM ENLIGHTE AWARD 2018 PRESENTED BY ALTAR FUTURE OF LIGHTWEIGHTIN WINNER Hring AAM fecture QUANTUM™ Technology wins Altair and SAA Lightweighting Awards 5th New Business Award ECO TRAC for our Ecotrac™ DISCONNECTING AWD SYSTEM BY Disconnecting AWD Technology Announces Redemption of $100M of Senior Notes due 2019 * For definitions of terms and non-GAAP reconciliations, please see the attached appendix. 23#243Q Sequential Adjusted EBITDA Walk (in millions) $348 ($21) ($10) ($8) AAM $275 ($26) ($12) $4 2Q 2018 Adjusted EBITDA * For definitions of terms and non-GAAP reconciliations, please see the attached appendix. Volume & Mix Metal Market & Fx Material, Freight & Tariffs Project and Launch Related Costs Performance, Labor Costs & Other Synergies 3Q 2018 Adjusted EBITDA 24#25Performance Improvement Plans Driveline Metal Forming Powertrain 1-4-1 H ||-||-|| - - - - 3Q Issues Supplier delivery performance Late changes affecting launch Scrap performance European capacity constraints - - Launch performance Ineffective program management - - Action Plan Increased monitoring of supplier operations Confirmation of customer launch requirements - Reinforcement of daily root cause analysis Capacity expansion / Throughput optimization initiatives - Executive team changes - Increased resources on launch AAM Anticipated Resolution Timing 3Q18 4Q18 1Q19 2Q19 Casting - Operational inefficiencies / Availability of labor Inflationary pressures - - management Assignment of legacy AAM associates Stabilize operations through additional hiring and training - Customer pricing initiatives 25#26AAM's Updated 2018 Financial Targets Sales Adjusted EBITDA* Margin Adjusted Free Cash Flow* ■ 2018 Full Year Targets ≈ $7.25 billion 16.25% - 16.5% ≈ 4% of sales Adjustments to previous targets reflect higher launch related expenses and manufacturing costs. We expect restructuring and acquisition-related payments to be between $60 and $75 million for the full year 2018. AAM Despite lowering full year targets - AAM still expects a strong financial performance in 2018 For definitions of terms, please see the attached appendix 26#27Other Forward-Looking Information Updates 2019 Full Year Sales Updated Forward-Looking Targets 2019 Adjusted EBITDA* Margin 2017-2020 Cumulative Adjusted Free Cash Flow* Flat to 2% growth ≈ 17% of sales ≈ $1.5 billion Based on the anticipated launch schedule of our new business backlog, our assumption that the US SAAR* is approximately 16.5 - 17 million units and current metal market levels. * For definitions of terms, please see the attached appendix AAM 27#28Synergy Achievement Progress from MPG Acquisition (AM Public Company Costs and Overhead Rationalization Purchasing Power and AAM Know-How Synergy Achievement Gauge (Annual Run Rate in millions) $40 M Vertical Integration Benefits and Manufacturing Initiatives $40 M $60 M Targeted Cost Reduction Synergies - Run Rate by 2020 = $140 M AAM has a clear path to meeting its updated synergy targets $102 million Annual Run Rate October 2018 1Q 2019 Target $120 million 2020 Target $140 million 28#29Cash Flow Breakeven US SAAR (units in millions) 17.2 2017 AAM 25-30% downturn Breakeven ≈12 ◉ Highly variable cost structure allows for flexibility during periods of lower volumes AAM has track record of reducing fixed costs. through facility and labor efficiency initiatives during previous downside periods. Multiple options available to manage to additional potential change in volumes, including SG&A, capital spending, R&D etc. Continued synergy attainment and productivity initiatives further reduce breakeven points AAM has a very flexible cost structure 29#30Capital Allocation Leverage Reduction AAM has made >$400M of senior debt payments over last 12 months Strategic Focus on objectives of technology, portfolio positioning, diversification and growth Organic Growth Invest in R&D and continue organic growth with the appropriate returns Shareholder Activity At the appropriate time, other options that may benefit our shareholders further Capital allocation aligned with strategic objectives of AAM AAM 30#31AAM Why AAM? SOLID FOUNDATIONAL BUSINESS INNOVATIVE TECHNOLOGY LEADERSHIP COMPELLING GROWTH AND DIVERSIFICATION INDUSTRY LEADING PROFITABILITY POWERFUL CASH GENERATOR Concentrated in the strongest vehicle segments of light trucks, SUVs and crossovers Focused on hybridization, electrification, lightweighting, fuel efficiency and performance Driven by our new business backlog, innovative advanced technologies and global footprint Fueled by powerful vertical integration, productivity initiatives and operational excellence Strong free cash flow yield while funding investments in profitable growth opportunities Potential for Multiple Expansion and Share Appreciation 31#32Q&A AAM#33SUPPLEMENTAL DATA AAM#34Reconciliation 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 presentation are provided on a non-GAAP basis. A reconciliation of non-GAAP forward-looking financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP is not practical given the difficulty of projecting event driven transactional and other non-core operating items, as well as accounting adjustments related to recent tax reform and their related effects in any future period. The magnitude of these items, however, may be significant. 34#353Q 2018 Year-Over-Year Sales Walk (in millions) $1,724 ($30) $13 $1,817 $110 AAM 3Q 2017 Sales Lower GM Full-Size Truck Backlog / Other Volume & Sales Metal Market & Fx AAM 3Q 2018 Sales Mix Approximately 5% of organic growth in 3Q 2018 on a year-over-year basis 35#363Q 2018 Year-Over-Year Adjusted EBITDA Walk (in millions) AAM $298 3Q 2017 Adjusted EBITDA $19 ($2) ($12) ($30) ($11) $13 $275 Backlog/Volume & Mix Metal Market & Fx Tariffs Material, Freight & Project and Launch- Related Costs Performance, Labor Costs & Other Synergies 3Q 2018 Adjusted EBITDA 36 * For definitions of terms and non-GAAP reconciliations, please see the attached appendix.#373Q 2018 to 4Q 2018 Adjusted EBITDA Walk (in millions) AAM $275 ($40-$50) $238 - $256** $10-$20 3Q 2018 Adjusted EBITDA Volume/Mix/Pricing (due mainly to less production days) Synergy, Launch and Performance 4Q 2018 Adjusted EBITDA Target Improvements In 4Q 2018, we expect improved performance to partially offset impact of lower seasonal 4Q production volumes * For definitions of terms and non-GAAP reconciliations, please see the attached appendix. ** Represents implied 4Q Adjusted EBITDA based on our full year 2018 Adjusted EBITDA targets 37#38Supplemental Data Net income Interest expense Income tax expense (benefit) Depreciation and amortization EBITDA Earnings before Interest, Income Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA ($ in millions) AAM 2017 2016 2015 2014 2013 EA $ 337.5 $ 240.7 $ 235.6 $ 143.0 $ 94.5 195.6 93.4 99.2 99.9 115.9 2.5 58.3 37.1 33.7 (8.2) 428.5 201.8 198.4 199.9 177.0 $ 964.1 $ 594.2 $ 570.3 476.5 379.2 Restructuring and acquisition-related costs, debt refinancing and redepemtion costs and non-recurring items 138.6 25.2 0.8 35.5 42.6 Adjusted EBITDA 1,102.7 $ 619.4 $ as % of net sales 17.6 % 15.7 % 571.1 14.6 % $ 512.0 13.9 % $ 421.8 13.2 % 38#39Supplemental Data EBITDA and Adjusted EBITDA Reconciliation ($ in millions) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income Interest expense $ 64.0 $ 86.3 $ 304.8 $ 231.0 54.9 57.5 162.5 139.9 Income tax expense 11.5 5.7 31.4 15.6 Depreciation and amortization 132.9 122.6 390.9 303.4 EBITDA 263.3 272.1 889.6 689.9 Restructuring and acquisition-related costs 11.7 22.8 66.8 90.5 Debt refinancing and redemption costs 14.6 2.7 Gain on sale of business (15.5) Non-recurring items: Gain on settlement of capital lease Acquisition-related fair value inventory adjustment (15.6) Other Adjusted EBITDA As % of net sales 24.9 2.9 (0.8) $ 275.0 15.1% $ 297.8 $ 939.9 $ 807.2 17.3% 16.9% 17.8% AAM 39#40Supplemental Data Free Cash Flow and Adjusted Free Cash Flow Reconciliation ($ in millions) Net cash provided by operating activities Capital expenditures net of proceeds from the sale of property, plant and equipment Free cash flow Cash payments for restructuring and acquisition-related costs Acquisition-related settlement of pre-existing accounts payable balances with acquired entities Interest payments upon the settlement of acquired company debt Adjusted free cash flow Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 223.8 $ 207.5 $ 513.2 $ 420.7 (116.5) (139.9) (388.6) (277.0) 107.3 67.6 124.6 143.7 14.0 20.3 55.3 86.5 35.2 24.6 $ 121.3 $ 87.9 $ 179.9 $ 290.0 AAM 40#41Supplemental Data 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, 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. Other Non-recurring Items Other non-recurring items reflect the impact of a non-cash pension settlement charge related to one of our foreign entities, the impact of a gain related to the change of our method of accounting for indirect inventory and the interest expense for the debt drawdown period prior to acquisition funding requirement. Free Cash Flow and Adjusted Free Cash Flow We define free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and from government grants. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs, settlements of pre-existing accounts payable balances with acquired entities, and interest payments upon the settlement of acquired company debt. 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 or pro forma Adjusted EBITDA, where applicable. Pro forma Adjusted EBITDA includes AAM's Adjusted EBITDA and the pre-acquisition EBITDA of acquired entities. 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. CAGR We define CAGR to be the compound annual growth rate of sales. AAM 41