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AAR Company Overview

Presented to: NC Aerospace Suppliers

Conference August 24, 2011

4Q FY2011

► Leading provider to commercial aviation and

government/defense customers

► Incorporated in 1955 — Only two CEOs in

Company’s history

► Track record of consistent profitability

► 16% Sales CAGR over last five years

► 6,400 employees at more than 60 locations,

worldwide

► Highly experienced leadership from

commercial and military

► Diverse markets, customers and products

> 48% Commercial — 52% Government

> 85% North America — 15% International

> 77% Aftermarket Services —

23% Manufacturing & Integration

AAR Overview

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AAR Global Presence

GOVERNMENT &

DEFENSE SERVICES

Adelaide, Australia

Al Dhafra, UAE*

Afghanistan (6 sites)*

Burkina Faso

Cherry Point, North Carolina*

Chicago, Illinois

Eindhoven, Netherlands*

Ft. Worth, Texas*

Greensboro, North Carolina

Havelock, North Carolina

Indianapolis, Indiana*

Jacksonville, Florida*

Lake Charles, Louisiana*

Macon, Georgia

McGuire AFB, New Jersey*

Melbourne, Florida

Nash, Texas

Ogden, Utah

Oklahoma City, Oklahoma*

Palm Bay, Florida

San Diego, California*

Scott AFB, Illinois*

AVIATION SUPPLY

CHAIN

Abu Dhabi, UAE

Amsterdam, Netherlands

Atlanta, Georgia*

Chicago, Illinois

Garden City, New York

Hannover, Germany*

London, England

Manamah, Bahrain*

Melbourne, Australia

Paris, France

Phoenix, Arizona*

Rio de Janeiro, Brazil

Shanghai, China

Singapore, Republic

of Singapore

Teterboro, New Jersey

Tokyo, Japan

Toronto, Canada*

Zhuhai, China*

* Co-located with customer facilities

GOVERNMENT &

DEFENSE SERVICES

Travis AFB, California*

Virginia Beach, Virginia*

Waddington, England*

Warner Robins, Georgia*

Windsor, Connecticut

Western Pacific (Guam)

MRO FACILITIES

Auburn, Washington*

Hot Springs, Arkansas

Indianapolis, Indiana

Kuala Lumpur, Malaysia

Miami, Florida

Oklahoma City, Oklahoma

STRUCTURES &

SYSTEMS

Cadillac, Michigan

Chicago, Illinois

Clearwater, Florida

Cullman, Alabama

Fayetteville, North Carolina

Goldsboro, North Carolina

Huntsville, Alabama

Lebanon, Kentucky

Melbourne, Florida

Memphis, Tennessee

Sacramento, California

Williamsburg, Virginia*

Diversified Revenue Stream

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$0M

$200M

$400M

$600M

$800M

$1,000M

$1,200M

$1,400M

$1,600M

$1,800M

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

Aviation Supply Chain Maintenance, Repair & Overhaul Structures & Systems Government & Defense Services

Solid Financial Performance — 35% year-over-year growth.

$886M

$1,061M

$1,385M $1,424M $1,352M

$1,776M

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A Sampling of AAR Customers

Airlines OEMs & MROs Cargo

Government

NATO

U.S. DoD

U.S. TRANSCOM

U.K. MoD

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Our People — Recognized for Excellence

AAR has earned a leadership position for its support of

both commercial aviation and national priorities.

Boeing Gold

Performance

Excellence Awards

Forbes

Most Trustworthy

Companies

Secretary of Defense

Performance-Based

Logistics Award

Top 100

Military-Friendly

Employers

FAA

Diamond

Award

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Total Support for Aerospace & Defense

Aviation Supply Chain Supply Chain Management

Aircraft & Engine Parts

Aircraft Sales and Leasing

Component Repair

Maintenance, Repair

& Overhaul Aircraft Maintenance/Mods

Engineering Services

Landing Gear, Wheels and

Brakes

Field Services

Government & Defense

Services Airlift Support

Logistics Services

Communications Technologies

Aircraft Modifications

Structures & Systems Mobile Shelters

Containers and Pallets

Machining Services

Cargo Systems

Diverse capabilities for commercial aviation, government and defense.

AAR Facilities in North Carolina

• Cargo Systems Goldsboro

• Mobility Systems Goldsboro &

Fayetteville

• Defense Systems Greensboro &

Havelock

AAR Defense Systems and Logistics (DS&L)

- Military Performance Based Logistics

►The AAR Team

● Experienced foundation in commercial / military aviation

● Retired Military aviation logisticians

● Understand O/I/D maintenance/supply functions

● Motivated by Performance Based Logistics (PBL)

►Our product is our Logistics Service

● Quality people are essential

● Mission oriented focus

►We are good at Integration

● Bridging the gap – Commercial / Government support

● Industry / Government Team work

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DS&L’s Role within PBL contracts

►AAR provides 3rd Party Logistics (3PL) support services

to our OEM customers

● Military logistics background

● Depot / Fleet / ICP / OEM Interfaces

● IT Systems integration - interfaces

● Requisition Response

● Material forecasting

● Warehousing

● Transaction Item Reporting (CAV/SIT)

● Transportation/Freight/local delivery/ITAR

● Expediting

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AAR DS&L … and PBL’s

►What we like about PBL’s

● Contractor is incentivized to improve availability/reliability

for their systems, not just selling more parts

● Good for the War Fighter

● Good for the Tax Payer

►The ―Headache‖ is the painfully slow process of award

● Original PBL concept was to keep it simple and ―buy the

watch‖ - One metric – Availability at a lower cost

● That vision has become blurred, contracts complicated

● Difficult to keep an OEM interested in playing in the

sandbox

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Thank you for your time today.

Let us know how we can contribute to your

success.

John Hannaford

Regional Director, Military Programs

AAR Defense Systems & Logistics