AAR Corp Parts Supply and Engineering Initiatives slide image

AAR Corp Parts Supply and Engineering Initiatives

3-5 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
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