Allison Transmission : Q3 2024 Investor Relations Presentation

Published: 2024-10-31 16:38:16 ET ALSN

Investor Relations Presentation Q3 2024

Published October 31, 2024

Business Overview

Allison Transmission at a Glance

Leading designer and

manufacturer of

propulsion solutions for commercial and defense vehicles

Premier brand, offering superior performance, frequently specified by end users

Well positioned for

revenue and

earnings growth

Strong cash flow

generation and well-

defined capital allocation policy

Allison Transmission at a Glance

LTM(1) Net Sales by End Market

Parts, Support

20%

Equipment and Other

Outside North America

Off-Highway

Outside North America

On-Highway

54%

North America

On-Highway

15%

Defense 6%

North America

Off-Highway

LTM(1) Net Sales: $3.2 billion

(1) LTM 9/30/24

North America On-Highway End Market

Class 1-3

Underserved

Core Addressable Market

Underserved

Class 8 Tractor

Class 4-5

Motor Home

School Bus

Class 6-7

Class 8 Straight

Class 8 Tractor

Sleeper

(Linehaul)

Day Cab

Vehicles

Weight

<14 lbs

14-19 lbs

16-33 lbs

19-33 lbs

33 lbs+

(000s of lbs)

Industry Units

12,565,903

127,832

10,880

31,988

117,082

93,451

109,026

146,861

Produced (2023)

Allison Share

15%

33%

79%

82%

2023

 $100 million incremental annual revenue growth opportunity in the Class 8 Tractor Day Cab market with the Allison 4000 Series fully automatic transmission and the award-winning Allison 3414 Regional Haul SeriesTM(1) fully automatic transmission, with proprietary xFE and FuelSense® 2.0 technology, launched with International in 2020, and Daimler Trucks North America (paired with diesel engine) and Volvo Trucks North America in 2021. Further releases in 2023 with Daimler Trucks North America, paired with natural gas engine in their Freightliner Cascadia and diesel engine in their M2 truck.

Note: Analysis excludes Allison's Transit/Coach Bus, and Electric Hybrid Transit Bus volume. Class 8 Straight industry units include Dockspotters.

Sources: Class 1-3 from WardsAuto North America Production (December 2023); Core Addressable Market from Allison Backcast, and Class 8 Tractor from Allison and ACT Research State of the Industry (January 2024)

(1) Addressable market for the 3414 Regional Haul Series (RHS) consists of approximately 25,000 units within the Class 8 Tractor Day Cab segment.

Strategic Priorities

1000/2000 Series

3000 Series

4000 Series

FracTran®

eGen Force

eGen Power® Electric Axles

Expand global

market

leadership

Emerging markets

penetration

Continued focus on

new technologies

and product development

Deliver strong

financial results

Elite EBITDA Margin

2023 EBITDA Margin(1)

40.0%

36.5%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

Graco

Gentex

Sensata

Parker Hannifin

Rockwell

Eaton

Donaldson

Cummins

Leading Technology and Innovation

1 Next Generation of Commercial Propulsion

New Allison eGen Portfolio of Electric Products

3 Allison eGen Power® Electric Axle Solutions

4 Allison eGen Flex® Electric Hybrid Propulsion

Allison eGen Force Electrified Transmission

Next Generation of Commercial Propulsion

Incremental growth opportunities for an established and experienced propulsion supplier such as Allison

Positioning Allison to advance the next generation of commercial vehicle propulsion

Fully-Integrated Electric Axles

- Multi-Speed Centrally Located EV Drives

Extended Range Electric Hybrid Propulsion

Transmission Integrated Generators

- Systems & Battery Management

Electrification of Accessories

Disclaimer

Allison Transmission Holdings Inc. published this content on October 29, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 31, 2024 at 20:28:43.729.