Triumph Group
Annual Report 2007

Plain-text annual report

Covers_052407:Triumph 2005 6/25/07 11:17 AM Page C1 TRIUMPH GROUP, INC. ANNUAL REPORT 2007 Covers_052407:Triumph 2005 6/25/07 11:17 AM Page C2 Triumph Group, Inc., headquartered in Wayne, Pennsylvania, is comprised of 33 highly specialized aerospace manufacturing and service companies, providing integrated solutions to the global aerospace market. Triumph companies design, engineer, manufacture, repair and overhaul a broad portfolio of aircraft components and accessories. All companies share the Triumph name and a common commitment to integrity, innovation, quality and service. Text_060107_FINAL:2007 6/25/07 10:33 AM Page 1 Financial Highlights (Dollars in thousands, except per share data) Results for Year: Sales Income from Continuing Operations % of Sales Income Tax Expense Interest Expense & Other Operating Income % of Sales Depreciation & Amortization Earnings before Interest, Taxes, Depreciation & Amortization* % of Sales Net Income % of Sales Earnings per Share – Diluted: Income from Continuing Operations Loss from Discontinued Operations Net Income Weighted Shares – Diluted (in thousands) Capital Expenditures Year-End Position: Working Capital Current Ratio Property & Equipment at cost Property & Equipment, net Debt Cash Net Debt Stockholders’ Equity Capital Net Debt to Capital Ratio Book Value per Common Share Employees Sales per Employee March 07 $ 954,735 $ 47,071 5% 24,026 19,556 $ 90,653 9% 37,029 $127,682 13% $ 47,071 5% $ $ 2.87 — 2.87 16,413 $ 59,694 $319,027 2.7 $461,506 $294,479 $316,183 7,257 $308,926 627,363 $936,289 33% $ 38.09 5,147 185 $ March 06 $ 760,421 $ 34,515 5% 9,053 12,519 $ 56,087 7% 32,038 $ 88,125 12% $ 34,515 5% $ $ 2.15 — 2.15 16,060 $ 28,777 $247,832 2.6 $377,090 $237,325 $161,417 5,698 $155,719 563,703 $719,422 22% $ 35.21 4,152 183 $ March 05 $ 688,485 $ 15,809 2% 4,596 13,025 $ 33,430 5% 30,528 $ 63,958 9% $ 11,428 2% $ $ 0.99 (0.27) 0.72 15,971 $ 18,602 $213,858 2.5 $350,249 $234,123 $157,782 4,844 $152,938 526,663 $679,601 23% $ 33.11 3,887 177 $ * Management believes that earnings before interest, taxes, depreciation and amortization (“EBITDA”) provides the reader a good measure of cash generated from the operations of the business before any investment in working capital or fixed assets. Sales 0 6 7 8 8 6 Cash Flow from Operations EBITDA Backlog 5 5 9 5 6 8 2 1 8 4 0 4 8 8 4 6 7 4 1 , 1 8 8 8 8 9 5 05 06 07 05 06 07 05 06 07 05 06 07 Sales increased 26% over 2006 on the strength of key acquisitions, robust industry growth, and the ability of our companies to work together to meet a broader range of our customers’ needs. Healthy cash flow, combined with a major debt refinancing which reduced the cost of borrowing, allows Triumph to fund future growth and remain prepared to take advantage of new opportunities. EBITDA increased 45% compared to 2006, as growing demand in the marketplace pushed Triumph closer to capacity – increasing revenues and earnings while containing costs. For the first time in Triumph’s 10-year history as a publicly-held company, our backlog – firm orders under contract over the next two years – surpassed the $1 billion milestone. 1 Text_060107_FINAL:2007 6/25/07 10:33 AM Page 2 Fellow Stockholders: I am pleased to report, on behalf of your management team, that fiscal 2007 was a most successful year for the Triumph Group. In every significant measure, we exceeded the results achieved in fiscal 2006, and established new records in revenues, earnings and backlog. > Sales in fiscal 2007 totaled $954.7 million, a 26% increase over 2006. Revenues reflected a balanced mix among the key market sectors of our industry. > Operating income reached $90.7 million in fiscal 2007, compared to $56.1 million last year, a 62% increase. > Earnings per diluted common share increased 33%, from $2.15 in fiscal 2006 to $2.87 in 2007. RICHARD C. ILL President and Chief Executive Officer Major Markets > Our balance sheet remains exceptionally strong, with a net debt to capital ratio of 33%. > Backlog, the value of firm orders under contract over the next two years, increased 29% to a record $1.1 billion in fiscal 2007. Our top ten programs measured in terms of backlog display a solid mix of commercial and military platforms, comprising both fixed- and rotor-wing aircraft. As we mark the completion of our tenth year as a publicly-held corporation, it’s appropriate to reflect on the strategies and values which have guided our growth over the past decade. Our five strategies have served us well since our inception and they remain relevant today: > Continually add products and services. > Expand operating capacity. > Acquire aggressively. > Market our complete portfolio of capabilities. > Expand internationally. Continually Add Products and Services Increasingly our customers demand comprehensive systems solutions – including design, engineering, manufacturing and aftermarket services. Many of our customers, pressured by the need for both productivity and profitability, have adopted a business model that relies on outsourcing critical services to a small team of highly skilled and trusted suppliers, like Triumph. To increase Triumph’s value as a preferred supplier, we constantly seek to expand our range of products and services so we can meet more of our customers’ needs. During fiscal 2007 we added a significant number of new products, capabilities and services for our e c a p s o r e A l a i c r e m m o C % 4 4 n o i t a i v A - n o N % 8 l a n o i g e R % 5 y r a t i l i M % 3 3 s s e n i s u B % 0 1 Top Ten Platforms as of March 31, 2007 (based on backlog) 1. Boeing 737 NG 2. Boeing 777 3. Airbus A320/321 4. CH-47 5. Boeing 787 6. UH60 7. C-17 8. V-22 9. Boeing 747 10. CH-53 Triumph serves a diversified mix of customers throughout the aerospace industry. No single market segment dominates sales or revenues. 2 international customer base. Some came through acquisitions. These include: > Monolithic structural components produced by Triumph Structures – Wichita (Excel Manufacturing, Inc., acquired in April 2006). > Airline interior components refurbished by Triumph Interiors (Air Excellence International, Inc., acquired in April 2006). > Large scale prototype development, complex structural composite design and manufacturing, and engineering services at Triumph Aerospace Systems – Newport News (Allied Aerospace Industries, Inc., acquired in November 2006). > Repair and overhaul of main engine accessories, including complete fuel capability, at Triumph Accessory Services – Grand Prairie (Grand Prairie Accessory Services, LLC, acquired in January 2007). Triumph now has the capability to produce and maintain virtually any aircraft component with the exception of main engines and landing gear (including wheels and brakes) – which have their own dedicated supply chains. In addition, by assembling such a broad array of skills, technology and know-how, we’re able to develop new products organically, as our customers look to us for design and engineering expertise, in addition to the ability to produce components and assemblies to predefined specifications. For example, in 2007 our project teams developed and produced: > Cargo door actuation systems, hold-open rods and electric brake actuators for the Boeing 787 Dreamliner. > Environmental control system composite ducting for business jets. > Rotor control cables for a significant new commercial helicopter program. > A towed-antenna deployment and recovery system for the Advanced Hawkeye surveillance airplane. > Asset/rotable management services for our airline customers. > Expansion of our maintenance, repair and overhaul (MRO) capabilities to include flight controls for the Boeing 737NG, 757, and 767 aircraft and fan reversers for CF6-80C2 and CFM56-7, V2500 and C-17 engines. We will continue to add new capabilities to our portfolio as a value-added systems integrator offering a continuum of design, manufacturing, integration and maintenance services. Text_060107_FINAL:2007 6/25/07 10:34 AM Page 3 monolithic structural components State-of-the-art machine tools are used to produce advanced one-piece monolithic parts, such as the crown bulkhead for the CH47F Chinook helicopter (right). Manufacturing parts in one piece eliminates the assembly process while reducing part count, aircraft weight and delivery lead time. In 2007 Triumph installed the world’s largest horizontal high speed (24,000 rpm) 5-axis flexible manufacturing system. Triumph’s investment in advanced tooling, combined with the specialized skills of our people, makes us the supplier of choice in many sophisticated manufacturing applications. Above right, monolithic bulkhead fittings for the UH60M Black Hawk helicopter. 3 Text_060107_FINAL:2007 6/25/07 10:34 AM Page 4 Triumph companies designed the latching system used on the Boeing Dreamlifter swingtail cargo aircraft. The Dreamlifter was designed to transport the 787 fuselage, wing and tail components from suppliers throughout the world to Boeing’s assembly plant in Seattle. Triumph employees worked on-site at Boeing for two years to design and integrate the latching and locking mechanism. complex systems design 4 Each of the 21 Latch Pin Actuators on a Dreamlifter is capable of withstanding over 60,000 pounds of shear force. The assembly includes integral secondary lock features and an automatic system for greasing the fittings that hold the swingtail closed. Triumph also manufactures the actuators that pull the swingtail fully closed. Text_060107_FINAL:2007 6/25/07 10:34 AM Page 5 Expand Operating Capacity The business outlook for the aerospace industry is especially strong. Demand continues to increase in both the OEM and maintenance markets. Ticket price increases have stabilized airline revenues without affecting passenger miles, and continued growth in Asia has created important new opportunities. Backlog of new aircraft orders has increased dramatically. This growth in nearly all aspects of commercial aircraft production is a tremendous opportunity for Triumph, but it is not without its challenges. To keep pace with our customers’ increasing monthly build rates, we must increase our operating capacity, while at the same time maintaining our high standards of quality and service. This requires careful management and the investment in new technology and equipment. New investments in state-of-the-art machine tools will allow our companies to maintain their competitive edge, while providing our customers with the support required during this period of expansion. Through disciplined investment, we expect to see continued improvement in our operating leverage and gross margins as these new machines see increased utilization. Likewise, our Aftermarket Services Group has expanded its operating capacity by offering a range of turnkey services that allow us to meet a broader range of our customers’ needs. Triumph significantly expanded its service offerings to include: material management for airlines and our own companies; increased rotables for key components such as auxiliary power units (APUs), fan reversers and heavy accessories; and leasing programs across Triumph’s entire product range, including the main engine and fuel components serviced by recently- acquired Triumph Accessory Services – Grand Prairie. Acquire Aggressively Since Triumph was founded in 1993, we’ve built our organization through an aggressive but highly selective acquisition program that adds capabilities and increases our capacity for strong and consistent internal growth. As mentioned previously, during fiscal 2007 we acquired four outstanding companies. These acquisitions significantly enhanced our product and service capabilities, while adding in excess of $120 million in annualized revenue in fiscal 2007. Each of these companies produced operating profits which met or exceeded the expectations established during the acquisition process. The four companies embody the key attributes we seek in all our acquisitions: > A strong, dedicated management team that fits within Triumph’s decentralized, results-oriented, entrepreneurial work culture. > A profitable product or service – one which requires specialized expertise and cannot easily be duplicated by others – which expands the Triumph portfolio. > Be immediately accretive to earnings. We maintain a highly disciplined structure when evaluating and bidding on potential acquisitions, and many times Triumph is selected by the seller on the basis of best fit rather than best price. What makes Triumph so attractive is our experience and focus on the aerospace industry, our decentralized operating philosophy where company management retains a great deal of accountability, and our ability to provide investment capital and expanded market access. Market Our Complete Portfolio of Capabilities Today all companies share the Triumph name, along with a commitment to Triumph’s strategy and values. As our customers look to us to provide a much broader portfolio of products and services – utilizing the capabilities of multiple Triumph companies – we’re able to build our reputation as an extremely agile and flexible systems integrator. For example: > Triumph Composite Systems and Triumph Structures – Kansas City worked together to provide an integrated package of composite ducts, window assemblies and machined components to Vought Aircraft for the Boeing 787. > Triumph Aerospace Systems – Seattle, Triumph Gear Systems, Triumph Actuation Systems – Clemmons and Connecticut, Triumph Controls, Triumph Fabrications – Hot Springs, and Triumph Structures – Kansas City provide the E-2D Advanced Hawkeye EMIRS Deployment System to Northrop Grumman. > The swingtail latching system for the 747 Dreamlifter was designed, integrated, manufactured and supplied to Boeing through the combined efforts of Triumph Aerospace Systems – Seattle, Triumph Fabrications – Hot Springs, Triumph Actuation Systems – Clemmons, Freeport and Valencia, Triumph Controls, Triumph Structures – Kansas City and Computer model of the Swingtail Hydraulic Power and Control Assembly which was designed and manufactured by Triumph companies. 5 Text_060107_FINAL:2007 6/25/07 10:34 AM Page 6 Triumph Thermal Systems. Triumph Structures – Los Angeles also manufactured the vertical stabilizer stringers for the Dreamlifter. > In the Aftermarket Services Group, Triumph Logistics provides our airline and air cargo customers with bundled products and services representing a broad range of Triumph companies, backed by a complete portfolio of asset management services. Increasingly, Triumph’s growth will depend on our ability to market a broad range of highly specialized skills as a unified, cohesive organization. We are meeting this challenge, even as we remain committed to a decentralized, entrepreneurial work culture that empowers our people to act quickly and decisively to meet our customers’ needs. Expand Internationally Today, fully 25% of the MRO market is based in Asia – a proportion that’s expected to continue increasing. Since many aircraft components we service are large and expensive to transport, it’s essential to locate Triumph’s aftermarket services as close to our customers as possible. Fiscal 2007 saw the culmination of a two-year effort to build a new MRO facility in Thailand, just south of Bangkok and in close proximity to Bangkok’s new Suvarnabhumi Airport. This new 85,000-square-foot facility will serve as the gateway for Triumph Aftermarket Services’ products and services in Asia, with particular emphasis on APUs, fan reversers, flight controls and airframe-mounted accessories. The recent acquisition of Triumph Accessory Services – Grand Prairie will add engine accessories and fuel capabilities to the facility. The opening of Triumph Aviation Services – Asia is an important step in Triumph’s goal of creating an international infrastructure to meet the needs of a global aerospace industry which transcends national boundaries. Toward Future Milestones When Triumph passes the $1 billion revenue milestone this year, it will go largely unnoticed in the everyday affairs of our employees, customers, suppliers and stockholders. That’s as it should be, because our achievement portends no change in direction or focus, but rather a continued commitment to business as usual at Triumph. This constancy – and our unwavering belief in our strategy and values – is the foundation for all we’ve accomplished in the past and for all our expectations for the future. There’s no doubt, however, that the engine of our growth is our people – the 5,100 employees whose knowledge, commitment and can-do attitude represent the true source of our strength. Thank you all for your hard work and for your continued support and friendship. I’d like to recognize one individual in particular. Triumph’s success over the past 13 years could not have been achieved without the contributions of John R. Bartholdson, who retired on April 30, 2007. John served as our Senior Vice President and Chief Financial Officer and as my trusted advisor since the inception of the company. Through John’s financial stewardship, the company moved from a highly leveraged private company to a corporation traded on the New York Stock Exchange with an enterprise value in excess of $1 billion. John’s contributions to our company will be felt long after his retirement and we wish him well in his new endeavors. In June, David Kornblatt joined Triumph as our new Senior Vice President and Chief Financial Officer. David most recently served as CFO of Carpenter Technology Corporation. I look forward to working with David as a key member of our senior management team. While much work remains, Triumph enters fiscal 2008 with anticipation and confidence in our ability to translate our proven strategies and shared goals into outstanding results. RICHARD C. ILL President and Chief Executive Officer In 2007 Triumph expanded its presence in Asia with the opening of an 85,000 square foot MRO service center just south of Bangkok, Thailand. As the Asia-Pacific headquarters for Triumph’s Aftermarket Services Group, the new facility replicates many of the capabilities of Triumph companies in the United States. 6 Text_060107_FINAL:2007 6/25/07 10:34 AM Page 7 component maintenance, repair & overhaul Triumph provides testing, repair, and overhaul for a variety of commercial main engine accessories, including fuel pumps (above), for all CFM56 Models, GE’s CF6 family, and IAE’s V2500. Our capabilities will also soon cover the GE90 and PW 2000 and 4000 platforms. Triumph Aviation Services – Asia, designed and constructed expressly for Triumph’s Aftermarket Services Group, is one of the most efficient, state-of- the-art MRO service centers in the world. Due to its location in a customs-free zone near Bangkok’s new international airport, parts are transshipped from the airport to Triumph’s loading dock in less than one business day. Currently the Thailand facility services auxiliary power units (above), fan reversers, flight controls, fuel pumps, engine accessories, and airframe- mounted accessories. Ultimately, the Thailand facility will provide repair services to more than 100 international airlines and provide services on 15,000 aircraft components – mirroring Triumph’s global capabilities. 7 Text_060107_FINAL:2007 6/25/07 10:34 AM Page 8 Company Directory Triumph Aerospace Systems Group Jeffry D. Frisby, Group President Phone: 336-766-9036 E-mail: jfrisby@triumphgroup.com Construction Brevetees d’Alfortville (C.B.A.) Manufactures mechanical ball bearing control assemblies for the aerospace, ground transportation, defense and marine industries. Michel Pommey, President E-mail: mpommey@triumphgroup.com Phone: 011 33 1 4375 2053 Alfortville, France Triumph Actuation Systems – Clemmons Triumph Actuation Systems – Freeport Designs, manufactures and repairs complex hydraulic and hydromechanical aircraft components and systems, such as variable displacement pumps and motors, linear actuators and valves, and cargo door actuation systems. Richard Reed, President E-mail: rreed@triumphgroup.com Phone: 336-766-9036 Clemmons, North Carolina Phone: 516-378-0162 Freeport, New York Triumph Actuation Systems – Connecticut Designs, manufactures and repairs complex hydraulic, hydromechanical and mechanical components and systems, such as nose wheel steering motors, helicopter blade lag dampers, mechanical hold-open rods, coupling and latching devices, as well as mechanical and electromechanical actuation products. Thomas Holzthum, President E-mail: tholzthum@triumphgroup.com Phone: 860-242-5568 Bloomfield, Connecticut Phone: 860-739-4926 East Lyme, Connecticut Phone: 203-748-0027 Bethel, Connecticut Triumph Actuation Systems – Valencia Designs, manufactures and repairs complex hydraulic and hydromechanical aircraft components and systems, such as accumulators, actuators, complex valve packages, and landing gear retract actuators. Lea Black, Interim President E-mail: lblack@triumphgroup.com Phone: 661-295-1015 Valencia, California Triumph Aerospace Systems – Newport News Offers a fully integrated range of capabilities, including systems engineering, conceptual engineering, mechanical design and analysis, prototype and limited-rate production, instrumentation assembly and testing services and complex structural composite design and manufacturing. Bill Jacobson, President E-mail: wjacobson@triumphgroup.com Phone: 757-873-1344 Newport News, Virginia 8 Triumph Aerospace Systems – Seattle System engineering and integration for landing gear, hydraulic, deployment, cargo door and electromechanical type systems. Capabilities include design, analysis and testing to support these types of systems and components. Don P. Fowler, President E-mail: dfowler@triumphgroup.com Phone: 425-636-9001 Redmond, Washington Triumph Aerospace Systems – Wichita Designs and manufactures aircraft windows, sheet metal assemblies (wing spars and leading edges), pilot/co-pilot control wheels, cockpit sunvisors, and structural composite parts for the aerospace industry. James E. Lee, President E-mail: jlee@triumphgroup.com Phone: 800-379-6840 Wichita, Kansas Triumph Composite Systems Manufactures interior non-structural composites for the aviation industry, including environmental control system ducting, floor panels, aisle stands and glareshields. MaryLou B. Thomas, President E-mail: mthomas@triumphgroup.com Phone: 509-623-8100 Spokane, Washington Triumph Controls Designs and manufactures mechanical and electromechanical control systems. William Bernardo, President E-mail: bbernardo@triumphgroup.com Phone: 215-699-4861 North Wales, Pennsylvania Phone: 317-421-8760 Shelbyville, Indiana Triumph Fabrications – Hot Springs Triumph Fabrications – Fort Worth Produces complex sheet metal parts and assemblies, titanium hot forming, metallic/composite bonding and performs chem-milling and other metal finishing processes. M. Anthony Johnson, President E-mail: tjohnson@triumphgroup.com Phone: 501-321-9325 Hot Springs, Arkansas Phone: 817-451-0620 Fort Worth, Texas Triumph Fabrications – Shelbyville Produces aircraft fuselage skins, leading edges and web assemblies through the stretch forming of sheet, extrusion, rolled shape and light plate metals. Donald E. Kendall, President E-mail: dkendall@triumphgroup.com Phone: 317-398-6684 Shelbyville, Indiana Triumph Fabrications – San Diego Triumph Fabrications – Phoenix Produces complex welded and riveted sheet metal assemblies for aerospace applications. Components include exhaust systems, ducting, doors, panels, control surfaces and engine components. Mark Gobin, President E-mail: mgobin@triumphgroup.com Phone: 619-440-2504 El Cajon, California Phone: 480-449-5820 Chandler, Arizona Triumph Gear Systems – Park City Triumph Gear Systems – Macomb Specializes in the design, development, manufacture, sale and repair of gearboxes, high-lift flight control actuators, gear-driven actuators and gears for the aerospace industry. Carla Bowman, President E-mail: cbowman@triumphgroup.com Phone: 586-781-2800 Macomb, Michigan Phone: 435-649-1900 Park City, Utah Triumph Northwest Machines and fabricates refractory, reactive, heat and corrosion-resistant precision products. Frederick W. Kuebrich, President E-mail: fkuebrich@triumphgroup.com Phone: 541-926-5517 Albany, Oregon Triumph Precision Manufactures ultra-precision machined components and assemblies to the aviation, defense, space and commercial industries. Kevin Dahlin, President E-mail: kdahlin@triumphgroup.com Phone: 818-767-7193 Sun Valley, California Triumph Processing Provides high-quality finishing services to the aerospace, military and commercial industries. Peter J. LaBarbera, President E-mail: plabarbera@triumphgroup.com Phone: 323-563-1338 Lynwood, California Triumph Structures – Kansas City Manufactures precision machined parts and mechanical assemblies for the aviation, aerospace and defense industries. David Soper, President E-mail: dsoper@triumphgroup.com Phone: 816-763-8600 Grandview, Missouri Triumph Structures – Los Angeles Manufactures long structural components such as stringers, cords, floor beams and spars for the aviation industry. Machines, welds and assembles large complex precision structural components. Kevin Dahlin, President E-mail: kdahlin@triumphgroup.com Phone: 626-965-1630 City of Industry, California Phone: 818-341-1314 Chatsworth, California Phone: 626-965-1630 Walnut, California Triumph Structures – Wichita Specializes in complex, high speed monolithic precision machining, turning, subassemblies and sheet metal fabrication, serving domestic and international aerospace customers. Marwan Hammouri, President E-mail: mhammouri@triumphgroup.com Phone: 316-942-0432 Wichita, Kansas Triumph Thermal Systems Designs, manufactures and repairs aircraft thermal transfer components and systems. Michael Perhay, President E-mail: mperhay@triumphgroup.com Phone: 419-273-2511 Forest, Ohio Triumph Instruments – Burbank Triumph Instruments – Ft. Lauderdale Triumph Instruments – Austin Repairs and overhauls aircraft instruments and avionics. David G. Vorsas, President E-mail: dvorsas@triumphgroup.com Phone: 954-772-4559 Fort Lauderdale, Florida Phone: 818-246-8431 Burbank, California Phone: 512-218-1900 Austin, Texas Triumph Interiors Refurbishes and repairs aircraft interiors such as sidewalls, ceiling panels, galleys and overhead storage bins and manufactures a full line of PMA interior lighting and plastic components. David Ogborne, President Email: dogborne@triumphgroup.com Phone: 412-788-4200 Oakdale, Pennsylvania Phone: 972-623-3344 Grand Prairie, Texas Phone: 011 35 361 472711 Shannon, Ireland Triumph Logistics Provides distribution, exchange and lease programs for auxiliary power units (APUs), APU components and other components supported by Triumph Group Companies. Lee R. Jacobs, President E-mail: ljacobs@triumphgroup.com Phone: 602-470-7226 Phoenix, Arizona Phone: 011 44 1256 337640 Basingstoke, England Triumph Precision Castings Applies advanced directionally solidified (polycrystal or single crystal) and Equiax investment casting processes to produce products for the commercial, industrial and defense gas turbine markets. Dean Evans, President E-mail: devans@triumphgroup.com Phone: 480-449-5750 Chandler, Arizona Triumph San Antonio Support Center Provides maintenance services for aircraft ground support equipment. Robert Bierk, President E-mail: bbierk@triumphgroup.com Phone: 210-932-6700 San Antonio, Texas Triumph Aftermarket Services Group John Brasch, Group President Phone: 602-659-7301 E-mail: jbrasch@triumphgroup.com Triumph Accessory Services – Wellington Provides maintenance services for aircraft heavy accessories and airborne electrical power generation devices, including constant speed drives, integrated drive generators, air cycle machines and electrical generators. Robert Bierk, President E-mail: bbierk@triumphgroup.com Phone: 620-326-2235 Wellington, Kansas Phone: 414-543-5604 Milwaukee, Wisconsin Triumph Accessory Services – Grand Prairie Provides maintenance services for engine and airframe accessories including a variety of engine gearboxes, pneumatic starters, valves and drive units, hydraulic actuators, lube system pumps, fuel nozzles, fuel pumps and fuel controls. Dennis Walsh, President E-mail: dmwalsh@triumphgroup.com Phone: 972-641-4677 Grand Prairie, Texas Triumph Air Repair Repairs and overhauls auxiliary power units (APUs) and related accessories. John Jenson, President E-mail: jjenson@triumphgroup.com Phone: 602-437-1144 Phoenix, Arizona Triumph Airborne Structures Repairs and overhauls fan reversers, nacelle components, flight control surfaces and other aerostructures. Mike Abram, President E-mail: mabram@triumphgroup.com Phone: 501-262-1555 Hot Springs, Arkansas Triumph Aviation Services – Asia Repairs and overhauls complex aircraft operational components, such as auxiliary power units (APUs), nacelles, constant speed drives, fan reversers and related accessories. Babu Kerai, Vice President – Operations Email: bkerai@triumphgroup.com Phone: 011 66 38 465 070 Chonburi, Thailand Triumph Engines – Tempe Designs, engineers, manufactures, repairs and overhauls aftermarket aerospace gas turbine engine components and provides repair services and aftermarket parts and services to aircraft operators, maintenance providers and third-party overhaul facilities. Elizabeth Rakestraw, General Manager E-mail: erakestraw@triumphgroup.com Phone: 602-438-8760 Tempe, Arizona Covers_052407:Triumph 2005 6/25/07 11:18 AM Page C3 Corporate Officers & Directors Executive Officers Directors RICHARD C. ILL President and Chief Executive Officer DAVID KORNBLATT Senior Vice President, Chief Financial Officer and Treasurer LAWRENCE J. RESNICK Senior Vice President – Operations JOHN B. WRIGHT, II Vice President, General Counsel and Secretary KEVIN E. KINDIG Vice President and Controller SHEILA G. SPAGNOLO Vice President Shareholder Information Triumph Group, Inc. Corporate Headquarters 1550 Liberty Ridge Drive Suite 100 Wayne, PA 19087 610-251-1000 www.triumphgroup.com Annual Meeting July 25, 2007, 9:00 am 1550 Liberty Ridge Drive, Suite 100, Wayne, PA 19087 Financial Information A copy of the Company’s Form 10-K filed with the Securities and Exchange Commission may be obtained without charge upon written request. Requests for Triumph Group, Inc.’s 10-K or other shareholder inquiries should be directed to: Sheila G. Spagnolo Vice President Triumph Group, Inc. 1550 Liberty Ridge Drive, Suite 100 Wayne, PA 19087 610-251-1000 WILLIAM O. ALBERTINI Executive Vice President, Chief Financial Officer Bell Atlantic Global Wireless, Inc. (Retired) JOHN R. BARTHOLDSON (Not standing for election) Senior Vice President, Chief Financial Officer and Treasurer Triumph Group, Inc. (Retired) RICHARD C. GOZON Executive Vice President Weyerhaeuser Company (Retired) RICHARD C. ILL President and Chief Executive Officer Triumph Group, Inc. CLAUDE F. KRONK Vice Chairman and Director J&L Specialty Steel, Inc. (Retired) GEORGE SIMPSON Chief Executive Officer Marconi, PLC (Retired) TERRY D. STINSON President of North America Operations The Thomas Group, Inc. Fiscal 2007 Stock Prices Per Common Share $57.45 High $40.60 Low $48.80 Year-End Common Stock Triumph Group, Inc. Common Stock is listed on the NYSE. Ticker symbol: TGI Independent Auditors Ernst & Young LLP 2001 Market Street Suite 4000 Philadelphia, PA 19103 Transfer Agent National City Bank Corporate Trust Operations P.O. Box 92301 Cleveland, OH 44193-0900 888-843-5542 E-mail: shareholder.inquiries@nationalcity.com Equal Opportunity at Triumph Triumph Group, Inc. is committed to providing equal opportunities in the workplace. Forward–Looking Statements In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that certain statements contained in this report are forward-looking in nature. These forward- looking statements include matters such as our expectations for our industry, our markets, our Company’s business strategy and financial results and other future-oriented matters. Such matters inherently involve many risks and uncertainties that may cause actual results to differ materially from expected results. For additional information, please refer to the Company’s Securities and Exchange Commission filings including its Form 10-K for the year ended March 31, 2007. Certifications The certifications by the principal executive officer and the principal financial officer of Triumph Group, Inc. required under Section 302 of the Sarbanes-Oxley Act of 2002 have been filed as exhibits to Triumph Group, Inc.’s 2007 Annual Report on Form 10-K. In addition, in July 2006, the Chief Executive Officer of Triumph Group, Inc. certified to the New York Stock Exchange (“NYSE”) that he is not aware of any violation by the Company of NYSE corporate governance listing standards, as required by Section 303A.12(a) of the NYSE Corporate Governance Rules. Covers_052407:Triumph 2005 6/25/07 11:18 AM Page C4 Triumph Group, Inc. 1550 Liberty Ridge Drive Suite 100 Wayne, PA 19087 610-251-1000 www.triumphgroup.com 

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