AAR Corp Parts Supply and Engineering Initiatives slide image

AAR Corp Parts Supply and Engineering Initiatives

Parts 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
View entire presentation