Triumph Group Annual Report 2009

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FY2009 Annual Report · Triumph Group

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Triumph Group, Inc. : 2009 Annual Report

The Triumph Advantage

One name. Many solutions.

Despite a challenging economic environment, Triumph set records in every key
performance measure in fiscal 2009.

(cid:129) Net sales in fiscal 2009 totaled more than $1.24 billion, an 8% increase over 2008.

(cid:129) Net income totaled $93.1 million in fiscal 2009, a 38% increase over 2008.

(cid:129) Income from continuing operations grew 29% to $97.8 million or $5.90 per diluted

share – up from $4.32 per share last year.

(cid:129) During fiscal 2009, Triumph generated $135.0 million of cash flow from operations,

a 193% increase over last year.

(cid:129) Our balance sheet remains exceptionally strong, with a debt-to-capitalization ratio

of 37%.

(cid:129) Backlog, the value of firm orders under contract for delivery within the next two

years, increased 4% to a record $1.3 billion in fiscal 2009.

Triumph Group, Inc., headquartered
in Wayne, Pennsylvania, is comprised
of 42 highly specialized aerospace
manufacturing and maintenance
companies at 56 locations, providing
integrated solutions to the global
aerospace market.

Triumph companies design, engineer,
manufacture, repair, and overhaul a
broad portfolio of aircraft components,
accessories and assemblies. All
companies share the Triumph name
and a common commitment to integrity,
innovation, quality and service.

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 09
$1,240,378

97,812
8%
45,586
8,516
$ 151,914
12%
48,611
$ 200,525
16%

93,067
8%

5.90
(0.29)
5.61

16,584

45,421

$ 372,159
2.2

$ 553,592
$ 332,467

$ 475,304
14,478
$ 460,826
779,650
$1,240,476
37%

47.00

6,131
202

March 08
$1,151,090

75,742
7%
37,161
13,422
$ 126,325
11%
43,215
$ 169,540
15%

67,274
6%

4.32
(0.48)
3.84

17,540

56,971

$ 416,842
3.0

$ 502,861
$ 311,433

$ 419,813
13,738
$ 406,075
692,729
$1,098,804
37%

41.94

5,572
207

March 07
$937,327

$ 50,976
5%
26,129
16,794
$ 93,899
10%
35,703
$129,602
14%

$ 47,071
5%

3.11
(0.24)
2.87

16,413

$ 55,092

$324,877
2.7

$436,149
$276,255

$316,183
7,243
$308,940
627,363
$936,303
33%

$ 38.09

5,010
187

* Management believes that earnings before interest, taxes, depreciation and amortization (“EBITDA”) provides useful information with respect to our overall operating performance, debt service capacity and ability to fund
capital expenditures.

Sales

Cash Flow from
Operations

EBITDA

Backlog

0
4
2
,
1

1
5
1
,
1

7
3
9

5
3
1

1
4

6
4

1
0
2

0
7
1

0
3
1

8
7
2
,
1

3
2
3
,
1

7
2
1
,
1

Despite these factors, the aerospace industry as a whole
remains financially sound in an extremely difficult economic
environment. While future industry performance is ultimately
linked to the health of the general economy, we believe its long-
term prospects are excellent. Triumph’s strong financial position
will enable us to weather these hard times, and may well provide
opportunities to enhance our competitive position.

The Triumph Advantage

During times of uncertainty and change, Triumph draws on its
heritage as a decentralized organization – today made up of 42
individual companies at 56 locations – built through a combination
of acquisition and internal growth over the past 15 years. Our
philosophy is to protect the integrity of the individual companies
and the products and services they provide, while offering each
company the advantages of being part of a larger corporate entity.

We manage Triumph according to principles common to any
successful, well-run, entrepreneurial enterprise – adhering to a
conservative management style emphasizing hard work, rigorous
cost control, and prudent financial management.

Because each company maintains its own identity, specialized
skills, and distinct customer base, Triumph as a whole
possesses exceptional flexibility to respond to changes in the
marketplace during stressful times. Since each company is
responsible for its own contribution to Triumph’s financial
performance, each is motivated to develop new capabilities and
to seek new potential opportunities, all the while carefully
managing expenses in line with anticipated returns.

We believe Triumph’s manufacturing capabilities are second to
none. Through the years we’ve invested in state-of-the-art
equipment and tooling which keep our companies at the
forefront of technology.

But the real key to our manufacturing expertise is the quality of our
people. We provide all our companies with a highly competitive
employee benefits package that helps them recruit and retain the
best talent in our industry. Equally important, every employee is
empowered in his or her own way to harness Triumph’s creative
energy and can-do work ethic for the benefit of our customers.

One name. Many solutions.

The Triumph name and our excellent reputation in the
marketplace allow our companies to join with their Triumph
peers to compete at the global level.

Our group marketing organizations in both Aerospace Systems
and Aftermarket Services focus on reaching across our
companies to sell systems, integrated assemblies and repair and
overhaul services to our original equipment manufacturer (OEM),
military, commercial and cargo customers.

As companies everywhere seek to reduce costs to improve
financial performance, Triumph offers our customers the ability to
satisfy a broad range of needs from a single source. Today a
significant portion of our revenues are derived from sales where
two or more Triumph companies work together to achieve a
result neither could accomplish on its own.

RICHARD C. ILL

President and

Chief Executive Officer

Fellow Stockholders:

In many respects, fiscal 2009 was a year of paradox. Despite a
challenging economy with few bright spots, Triumph achieved
the best financial performance in our history. We set new
records in revenue, operating income, cash flow, earnings per
share, and backlog. At a time when many companies struggled
to survive, Triumph continued to grow and to achieve the goals
we set for ourselves.

Nobody can say for certain what the future holds, and we cannot
allow ourselves simply to assume we can sustain these results
regardless of external forces. However, in 2009 we demonstrated
that we are well prepared to take advantage of the opportunities
which always accompany challenge and change.

Industry Outlook

As the worst recession of the postwar era continues, the short-
term economic outlook is not encouraging. The coming months
will be difficult and challenging for all businesses, and Triumph is
no exception.

In the aerospace industry, it’s generally assumed that the current
growth cycle has peaked, even though the momentum of the
past four years should carry forward through 2010, by which
time the overall economy may rebound. This outlook is
constrained, however, by a number of uncertainties.

(cid:129) Buffeted by falling demand, commercial and air cargo carriers
may defer or even cancel deliveries until economic recovery
appears more certain.

(cid:129) The world’s airlines, already hit by rising fuel costs in 2008, are

now confronting an overall decline in both business and personal
air travel.

(cid:129) Business aviation was among the first sectors affected by the

financial crisis, as corporations pared down budgets and acted
to avoid even the appearance of ostentatious expenditures.

(cid:129) The Obama Administration’s ongoing reassessment of military
spending may adversely affect some existing military programs
as it increases opportunities in others.

New Capabilities

While 2009 was a year of contraction for many companies,
Triumph’s aggressive acquisition strategy continued to add new
companies and capabilities:

(cid:129) Saygrove Defence and Aerospace Group, Ltd., based in
Buckley, U.K., provides expertise in actuation and control
systems for all-electric aircraft and Unmanned Aerial Vehicles
(UAVs). The company will operate as Triumph Actuation &
Motion Control Systems-UK, Ltd.

(cid:129) Merritt Tool Co., Inc., Kilgore, Texas, specializes in complex
precision machining of aircraft structural components. The
company will operate as Triumph Structures-East Texas, Inc.

(cid:129) Mexmil Company, LLC, is a global leader in the design,

manufacture and repair of thermal-acoustic insulation systems
for commercial aerospace applications. Based in Santa Ana,
California, Mexmil has manufacturing locations in Mexico and,
through a joint venture, in China. The company will operate as
Triumph Insulation Systems, LLC.

(cid:129) The aviation segment of Kongsberg Automotive, with facilities in
Basildon, U.K., and Heiligenhaus, Germany, produces and
repairs cable control systems for ground, flight, engine
management and cabin comfort features in aircraft, and
complements our skill set in electromechanical control systems.
The company will operate as Triumph Controls-UK, Ltd., and as
Triumph Controls-Germany, GmbH.

In 2009, Triumph demonstrated the real power of our core
business strategies:

(cid:129) Continually add products and services.
(cid:129) Expand operating capacity.
(cid:129) Acquire aggressively.
(cid:129) Market our complete portfolio of capabilities.
(cid:129) Expand internationally.

These strategies have served Triumph well since our founding,
and they will continue to guide our growth in the years ahead.

Transitions

Sadly, in June 2008, one of Triumph’s greatest supporters
passed away unexpectedly. William O. Albertini, a senior
executive with Bell Atlantic Global Wireless until his retirement in
1999, served as a Director of Triumph and as Chairman of our
Audit Committee for nine years. Bill served as an active steward
of our company’s and our stockholders’ interests, and Triumph
benefited significantly from his business and financial insights.
His friendship and guidance will be greatly missed.

In October 2008, shareholders elected two new board members,
Paul Bourgon and Joseph M. Silvestri. Mr. Bourgon is President
of the Aeroengine Division of SKF USA, where he manages a
global aerospace supplier business with major operations in the
United States, Canada, Italy, England, and France. Mr. Silvestri
has served as Managing Partner of Court Square Capital and its
predecessor, Citigroup Venture Capital, since 1990.

Together, we expect these acquisitions will add more than
$100 million in 2010 revenues and will immediately contribute
to earnings.

On behalf of all of us at Triumph, I extend a warm welcome to
these two distinguished board members, and look forward to
their many contributions in the months and years ahead.

In addition, we announced plans to establish new manufacturing
capabilities in Zacatecas, Mexico – allowing us to better manage
production costs and to expand the capacity of our domestic
U.S. manufacturing plants.

Sustaining the Triumph Advantage

Triumph is fortunate to be able to continue our aggressive
acquisition strategy during a period of economic distress and
scarce credit. We have carefully managed our balance sheet to
avoid excessive debt, and our existing credit facilities, combined
with the exceptional ability of our companies to generate cash,
provide ample reserves to take advantage of new opportunities.

For example, in 2009 we made outstanding progress in better
managing our working capital by employing just-in-time supply
strategies, reducing inventories, and freeing cash for other, more
productive uses. Significantly, cash flow from operations funded
fully 96% of Triumph’s acquisitions in 2009.

Serving our customers requires innovation, flexibility and the
imagination to create opportunity where others see only peril.

Looking Ahead

It’s unlikely that the coming months will be easy or problem free.
Nor is there any guarantee that we will sustain the record-setting
financial performance Triumph has achieved in recent years.
Forces at work in the global economy are too strong and too
widespread to permit confident predictions about what the
future has in store.

However, we know it’s at times like these when companies with
a clear vision, a sound strategy and the ability to adapt to new
conditions are able to seize the moment, to stand apart from the
rest, and thrive. We look to the future with self-assurance and
anticipation, thanks to the contributions of our 6,000-plus
employees. Because of their efforts, Triumph is well positioned
to perform and prosper.

RICHARD C. ILL
President and Chief Executive Officer

The Triumph Advantage

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The Triumph Group’s 42 specialty manufacturing companies offer the ability to design,
engineer, fabricate or overhaul virtually any kind of part, component or assembly.

All Triumph companies meet the exacting standards and quality requirements of the
global aerospace industry – providing fully integrated systems solutions through a
single point of contact.

One name. Many solutions.

Design and Engineering
Triumph’s design and engineering teams have the skills and experience required to transform ideas and
concepts into finished product solutions for our customers. No job is too small or too large – from simple
brackets and components to major structural assemblies.

Contract Manufacturing
Many customers rely on Triumph’s specialized manufacturing capabilities to outsource the fabrication of a
range of parts and components. The diversity of our companies’ capabilities allows us to meet virtually any
customer need.

Systems Integration
Because of Triumph’s diversity and scale, we’re able to participate at any level of the manufacturing process,
contributing whatever’s required to produce a fully integrated product or assembly – from large structural
components to sophisticated systems and controls.

Maintenance, Repair and Overhaul
Triumph’s commitment to customer care encompasses both the products we manufacture ourselves and
those we service for others. We maintain, repair, overhaul and provide replacement parts for virtually every
major aircraft system.

Top Ten Platforms
as of March 31, 2009
(based on backlog)

1. Boeing 777

2. Boeing 737 NG

V-22 Osprey

CH-47 Chinook

UH-60 Black Hawk

6. Boeing 787

C-17 Freighter

F-15 Eagle

9. Boeing 747

10. Airbus A320/321

Structures and Fabrications

Triumph manufactures a broad array of airframe
structures for the world’s leading aerospace
manufacturers. We have the capability to form
and machine both large and small components –
adding value with our expertise in exotic metals,
composites, metals finishing, and thermal
technologies. These world-class skills allow
us to design, engineer and manufacture

structures meeting strict quality controls and
rigorous performance specifications. Triumph’s
expertise with new and emerging technologies
allows us to design products that establish new
standards of excellence in the industries we
serve – reducing maintenance requirements and
improving cost efficiency.

Metal
Forming

Precision
Machining

Exotic
Metals

Composite
Systems

Metals
Finishing

Thermal
Technology

Drawing on our experience
fabricating large structural
components for the aerospace
industry, Triumph has the
capability to provide virtually any
metal forming solution. We have
proficiency in super plastic
stretch, bulge, drop hammer, and
hydro-forming of most materials
used in industry today.
Complementing our forming
capabilities is our expertise in
chemical milling, resistance and
fusion welding, and material
bonding. Because of our
extensive skill set, we offer our
customers the ability to select
the best approach from a broad
range of possibilities.

Triumph companies offer state-of-
the-art machining expertise that
meets the stringent requirements
of the aerospace and defense
industries. Our precision
machining capabilities include
small, medium and large 3-, 4-, 5-
and 6-axis milling – with output
ranging from very small turned
parts to components up to 150
feet in length. Our high-speed
machining techniques can produce
thin-walled monolithic structures
with tolerances of .010-inch.
Because of Triumph’s ongoing
investment in our machining
capabilities, we’re able to provide
seamless support from prototype
development to full production.

In addition to manufacturing
components from commonly-used
materials like stainless steel and
aluminums, Triumph also
fabricates parts from exotic
materials such as molybdenum,
tantalum, Inconel® and titanium.
While exotic metals possess
unique properties such as
durability, corrosion resistance and
the ability to withstand high
temperatures, virtually all share a
common characteristic – they can
be very difficult to form and
machine. Triumph has developed
this highly specialized expertise
from decades of service to the
aerospace and defense industries.

Triumph designs and
manufactures a vast array of
both structural and non-structural
composite parts and assemblies
for aircraft interiors. These
include flooring systems,
environmental control system
ducting, glare-shields, drip-
shields, side-wall risers, aisle
stands, and mix bay manifolds.
Utilizing a variety of
manufacturing processes –
including rotational molding,
Ultem® post-forming, and
reinforced thermoplastic laminate
(RTL) pressing – Triumph can
fabricate any type of composite
part or assembly.

Triumph offers comprehensive
metals finishing capabilities –
from base metal primers to final
coatings and paint. We have the
capacity to handle virtually any
part size – from small
components to large structures.
Capabilities include chromic and
sulfuric anodizing, chemical
conversion coatings, phosphate
fluoride treatments, penetrants,
thermal optical coatings,
ammonium biflouride etch
inspections, and cleaning and
inspection of titanium. We also
offer the technology to composite
wrap metal enclosures to reduce
weight and enhance strength
and durability.

Triumph is a leader in thermo-
acoustic insulation design and
manufacturing. Every year we
deliver more than one million
high-performance insulation
blankets to the world’s leading
aerospace manufacturers and
carriers. Our material R&D team
searches all industries to find
new materials and processes
that will enable us to meet and
exceed rigorous performance
standards for thermal, acoustic
and fire protection.

Systems and Controls

Triumph provides extensive expertise in a wide
range of systems and controls to monitor and
manage the operation of complex equipment –
including geared products, electromechanical
controls, hydraulic systems, actuation systems,
thermal controls and instrumentation. Individual
Triumph companies have many years of

experience in each of these specialties and
collaborate with each other to recommend and
produce the best system for each customer
application. Our companies employ the most
advanced technologies to engineer highly efficient
solutions – saving money by increasing reliability
and reducing maintenance requirements.

Geared
Products

Electromechanical
Controls

Hydraulic
Systems

Actuation
Systems

Thermal
Controls

Instrumentation

Triumph companies offer more
than 60 years of experience in
advanced power transmission
engineering and manufacturing –
from single-piece detailed gears to
complex rotorcraft drive trains.
Applications include propulsion
and accessory drive transmissions,
high-lift and flight trim systems,
and utility actuation. Triumph
products are found on some of
the world’s best-known aircraft
and rotorcraft. This depth of
experience and our use of proven
design elements reduce technical
risk, decrease the development
time cycle, and ensure customer
satisfaction.

Triumph electromechanical
designs are used in a variety of
applications – from simple
electromechanical actuation to
complex, software-controlled
systems. We are leading the
technological advance in the
design and manufacture of
electrical braking actuation.
We have adapted this design
capability to replace many
systems which historically had
been hydraulic-operated –
increasing reliability and
decreasing complexity.

Triumph offers the capability to
design and manufacture complete
hydraulic control systems. We
produce every component used in
typical hydraulic systems –
including fixed and variable
displacement pumps and motors,
linear actuators, valves and other
components used on a wide range
of commercial and military aircraft.
Our customers include every major
airframe manufacturer in North
America and Europe.

Triumph designs and produces
the control systems that connect
critical flight control systems
through mechanical means or
software. We offer a range of
aircraft cockpit controls and
instruments – including
pilot/copilot control wheels,
landing gear and park brake
levers, flap and spoiler selection
controls and steering tillers.

Triumph provides multidisciplinary
solutions for a wide range of
actuation systems, including
comprehensive systems analysis
and trade studies for the specific
system type and control. Based
on this analysis, we then specify
the optimal combination of
mechanical, electromechanical,
hydraulic, and hydromechanical
control systems to meet the
customers’ requirements.
Our experience is based on
complex aerospace and military
applications – requiring a
combination of precise control,
ease of operation and absolute
reliability.

Triumph is a world leader in
thermal systems management –
designing and manufacturing
heat exchange and transfer
systems and related components
for temperature control in
fuel, lubrication, hydraulic,
environmental, and related systems
in aerospace and commercial
applications. Products include plate
fin heat exchangers, tubular heat
exchangers, and liquid cooling
systems – including tanks and
reservoirs. Our team of designers
and engineers incorporates
systems thinking to reduce the
most complex temperature control
requirements to a component
solution, customized to meet the
requirements of each application.

Maintenance, Repair, and Overhaul (MRO)

Triumph provides extensive MRO support for the
world’s commercial and air cargo carriers, private
aviation, and the military. We service all the
structures, components and assemblies we
manufacture as original equipment (OE), as well
as thousands of other products developed by
others. This diverse range of capabilities –
including virtually every major aircraft system –

enables Triumph to provide our customers
with MRO services covering a broad range of
products – all through a single point of contact.
In addition, we assist our customers in managing
their inventory – reducing carrying costs while
ensuring that the parts and components are
available when and where they are needed.

Airframe
Structures

Triumph provides comprehensive
MRO services for a broad range
of metal and composite aircraft
structures. Capabilities include
repair, overhaul, training and field
service engineering for thrust
reversers, engine cowlings and
flight surfaces. Additional
structural refurbishment services
include interior components such
as side walls, galleys and bin
doors. In addition, DER-approved
repair development and PMA
replacement part capabilities
make Triumph a leading provider
of low-cost, high-quality
structural MRO solutions.

Engine and APU
Components and
Accessories

Triumph provides MRO services
for APUs and accessories, with
facilities in the United States and
Asia. We are designated as a
Honeywell Factory Service Center
for select models. Internal
manufacturing, fabrication,
processing and repair capabilities
provide Triumph with a competitive
advantage in the APU market.
In addition to APU capabilities,
Triumph supports a number of
engine fuel components including
fuel pumps, nozzles, flow
transmitters and controls.

Systems and
Equipment

Triumph specializes in the repair of
pneumatic, hydraulic, heat transfer
and electromechanical systems –
including environmental systems,
starters, power generation,
lubrication pumps, ACC valves and
stators and rotors. Our MRO
support extends to all our OE
products, including complex
hydraulic and hydromechanical
systems, secondary power drive
systems, high lift systems and
heat exchanger and oil cooler
systems. Capabilities include
hydraulic valves and actuators,
power transfer units, fixed and
variable displacement pumps,
landing gear actuation, hydraulic
manifolds, accumulators,
reservoirs, engine gearboxes, flap
actuators and trim actuators.

High-Power
Accessories and
Instrumentation

Triumph specializes in the
repair, overhaul and exchange
of high-power accessories;
electromechanical, digital and
pneumatic aircraft instruments,
and accessories. These capabilities
include indicators, transmitters,
flight director indicators, flight and
navigation display, Traffic Collision
Avoidance System (TCAS) antenna,
vertical and directional gyroscopes
and pneumatic altimeter and
airspeed indicators. Capabilities
also include repair and overhaul
of our OE electromechanical
control systems, including
push/pull cable controls, helix
cable controls, engine and
thrust reverser controls, flap and
control modules, and landing gear
steering control modules.

Company Directory

Triumph Aerospace
Systems Group
Jeffry D. Frisby, Group President
E-mail: jfrisby@triumphgroup.com
Phone: 336-766-9036

Construction Brevetees d’Alfortville

(C.B.A.)

Manufactures mechanical ball bearing
control assemblies for the aerospace,
ground transportation, defense and marine
industries.
Pierre Vauterin, President
E-mail: pvauterin@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.
Bill Boyd, President
E-mail: bboyd@triumphgroup.com
Phone: 661-295-1015
Valencia, California

Triumph Actuation & Motion Control

Systems – UK

Designs and builds proprietary advanced
control products for flight actuation and motor
control applications in all-electric aircraft and
Unmanned Aerial Vehicles (UAVs).
Steven A. Ward, President
E-mail: sward@triumphgroup.com
Phone: 011 44 1244 550 0022
Buckley, United Kingdom

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
Phone: 858-537-2020
San Diego, California
Phone: 256-544-4106
Huntsville, Alabama
Phone: 860-255-7005
Burlington, Connecticut

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
Rochester, New York

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.
Timothy A. Stevens, President
E-mail: tstevens@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 Controls – Germany
Triumph Controls – UK
Produces and repairs cable control systems
for ground, flight, engine management and
cabin comfort features in aircraft.
William Bernardo, President
E-mail: bbernardo@triumphgroup.com
Phone: 011 49 205 69130
Heiligenhaus, Germany
Phone: 011 44 1268 522 861
Basildon, United Kingdom

Triumph Fabrications – Fort Worth
Manufactures metallic/composite bonded
components and assemblies.
M. Anthony Johnson, President
E-mail: tjohnson@triumphgroup.com
Phone: 817-451-0620
Fort Worth, Texas

Triumph Fabrications – Hot Springs
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

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: 619-440-2004
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 Group – Mexico
Provides rough machining of gears,
actuations and structure components, as
well as assembly, fabrications, engineering
and composites to Triumph companies and
certain customers. Facility scheduled to
open early 2010.
Ron Scruggs, President
E-mail: rscruggs@triumphgroup.com
Zacatecas, Mexico

Triumph Insulation Systems
Produces insulation systems provided to
original equipment manufacturers, airlines,
maintenance, repair and overhaul
organizations and air cargo carriers. Also
provides products in the ancillary aircraft
interiors and spares markets.
Scott W. Holland, President
E-mail: sholland@triumphgroup.com
Phone: 316-942-0432
Santa Ana, California
Mexicali, Mexico
Beijing, China

Triumph Northwest
Machines and fabricates refractory, reactive,
heat and corrosion-resistant precision
products.
Clyde Forrest, President
E-mail: cforrest@triumphgroup.com
Phone: 541-926-5517
Albany, Oregon

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 – East Texas
Manufactures of aircraft structural
components specializing in complex
precision machining primarily for commercial
and military aerospace programs.
A.P. Merritt, President
E-mail: amerritt@triumphgroup.com
Phone: 903-984-1128
Kilgore, Texas

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 – Long Island
Manufactures high-quality structural
and dynamic parts and assemblies for
commercial and military aerospace
programs.
Lenny Gross, President
E-mail: lgross@triumphgroup.com
Phone: 516-997-5757
Westbury, New York

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: 419-273-1169
Forest, Ohio

Triumph Aftermarket
Services Group
John Brasch, Group President
E-mail: jbrasch@triumphgroup.com
Phone: 602-659-7301
Mike Abram, Senior Vice President
E-mail: mabram@triumphgroup.com
Phone: 501-262-1555

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.
Richard R. Rockwood, Interim President
E-mail: rrockwood@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.
Kevin Murphy, President
E-mail: kmurphy@triumphgroup.com
Phone: 972-641-4677
Grand Prairie, Texas

Triumph Air Repair
Repairs and overhauls auxiliary power units
(APUs) and related accessories; sells, leases
and exchanges APU’s, related components
and other aircraft material.
Elizabeth Rakestraw, President
E-mail: erakestraw@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.
Remy Maitam, President
E-mail: rmaitam@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, President
E-mail: erakestraw@triumphgroup.com
Phone: 602-438-8760
Tempe, Arizona

Triumph Instruments – Burbank
Repairs and overhauls aircraft
instrumentation, power systems and
avionics. Distributes and repairs aircraft
smoke detectors and industrial
instrumentation.
Richard R. Rockwood, Interim President
E-mail: rrockwood@triumphgroup.com
Phone: 818-246-8431
Burbank, California

Triumph Instruments – Ft. Lauderdale
Triumph Instruments – Austin
Specializes in the repair, overhaul and
exchange of electromechanical and
pneumatic aircraft instruments.
David G. Vorsas, President
E-mail: dvorsas@triumphgroup.com
Phone: 954-772-4559
Fort Lauderdale, Florida
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.
Mike Abram, President
E-mail: mabram@triumphgroup.com
Phone: 412-788-4200
Oakdale, Pennsylvania
Phone: 972-623-3344
Grand Prairie, Texas

Triumph Logistics – UK
Provides distribution, exchange and lease
programs for auxiliary power units (APUs),
APU components and other components
supported by Triumph companies.
Lee R. Jacobs, President
E-mail: ljacobs@triumphgroup.com
Phone: 011 44 1256 337640
Basingstoke, England

Triumph San Antonio Support Center
Provides maintenance services for aircraft
ground support equipment.
Richard R. Rockwood, Interim President
E-mail: rrockwood@triumphgroup.com
Phone: 210-932-6700
San Antonio, Texas

Corporate Officers & Directors

Executive Officers
RICHARD C. ILL
President and Chief Executive Officer

M. DAVID KORNBLATT
Senior Vice President,
Chief Financial Officer and Treasurer

JOHN B. WRIGHT, II
Vice President,
General Counsel and Secretary

KEVIN E. KINDIG
Vice President and Controller

SHEILA G. SPAGNOLO
Vice President,
Tax and Investor Relations

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 23, 2009, 9:00 am
Triumph Group, Inc.
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, Tax and Investor Relations
Triumph Group, Inc.
1550 Liberty Ridge Drive, Suite 100
Wayne, PA 19087
610-251-1000

Directors
PAUL BOURGON
President, Aeroengine Division
SKF USA

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)

JOSEPH M. SILVESTRI
Managing Partner
Court Square Capital

Fiscal 2009 Stock Prices
Per Common Share
$73.76
High
$26.89
Low
$38.20
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 potential 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, 2009.

Certifications
The certifications by the Chief Executive
Officer and Chief 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
2009 Annual Report on Form 10-K. In
addition, in July 2008, 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.

Triumph Group, Inc.

1550 Liberty Ridge Drive
Suite 100
Wayne, PA 19087

610-251-1000
www.triumphgroup.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

FORM 10-K

(cid:1) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2009

(cid:2) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File No. 1-12235

Triumph Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or organization)

51-0347963
(I.R.S. Employer Identification Number)

1550 Liberty Ridge Drive, Suite 100, Wayne, Pennsylvania 19087
(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (610) 251-1000

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, par value $.001 per share
(Title of each class)

New York Stock Exchange
(Name of each exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities

Act. Yes (cid:1) No (cid:2)

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities

Exchange Act of 1934. Yes (cid:2) No (cid:1)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes (cid:1) No (cid:2)

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or
for such shorter period that the registrant was required to submit and post such files). Yes (cid:2) No (cid:2)

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will

not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in
Part III of this Form 10-K or any amendment to this Form 10-K. (cid:2)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller

reporting company. See definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ and ‘‘smaller reporting company’’ in Rule 12b-2 of
the Exchange Act. (Check one):
Large accelerated filer (cid:1) Accelerated filer (cid:2) Non-accelerated filer (cid:2) Smaller reporting company (cid:2)

(Do not check if a
smaller reporting
company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of

1934). Yes (cid:2) No (cid:1)

As of September 30, 2008, the aggregate market value of the shares of Common Stock held by non-affiliates of the Registrant was

approximately $740 million. Such aggregate market value was computed by reference to the closing price of the Common Stock as
reported on the New York Stock Exchange on September 30, 2008. For purposes of making this calculation only, the Registrant has
defined affiliates as including all directors and executive officers.

The number of outstanding shares of the Registrant’s Common Stock, par value $.001 per share, on April 30, 2009 was 16,667,914.

Portions of the following document are incorporated herein by reference:

Documents Incorporated by Reference

The Proxy Statement of Triumph Group, Inc. to be filed in connection with our 2009 Annual Meeting of Stockholders is

incorporated in part in Part III hereof, as specified herein.

Item No.

Page

Table of Contents

PART I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 1.
General
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proprietary Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Raw Materials and Replacement Parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales, Marketing and Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Backlog . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dependence on Significant Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United States and International Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Government Regulation and Industry Oversight
. . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and Development Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 1A. Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 1B. Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 2.
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 3.
Submission of Matters to a Vote of Security Holders . . . . . . . . . . . . . . . . . . . . . . .
Item 4.

PART II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer

Item 6.
Item 7.

Purchases of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management’s Discussion and Analysis of Financial Condition and Results of

Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 7A. Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . .
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 8.
Changes in and Disagreements With Accountants on Accounting and Financial
Item 9.

Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 9A. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 9B. Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART III . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . .
Item 10.
Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 11.
Security Ownership of Certain Beneficial Owners and Management and Related
Item 12.

Item 13.
Item 14.

Stockholder Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certain Relationships and Related Transactions, and Director Independence . . . . . .
Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exhibits, Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 15.

3
3
3
3
5
5
6
13
13
13
14
14
14
15
15
16
16
17
17
21
21
22
23

24
26

27
45
45

88
88
93

93
93
93

94
94
94

94
94

Item 1. Business

PART I

This report contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 relating to our future operations and prospects, including statements
that are based on current projections and expectations about the markets in which we operate, and
management’s beliefs concerning future performance and capital requirements based upon current
available information. Actual results could differ materially from management’s current expectations.
Additional capital may be required and, if so, may not be available on reasonable terms, if at all, at the
times and in the amounts we need. In addition to these factors and others described elsewhere in this
report, other factors that could cause actual results to differ materially include competitive and cyclical
factors relating to the aerospace industry, dependence of some of our businesses on key customers,
requirements of capital, product liabilities in excess of insurance, uncertainties relating to the
integration of acquired businesses, general economic conditions affecting our business segment,
technological developments, limited availability of raw materials or skilled personnel, changes in
governmental regulation and oversight and international hostilities and terrorism. For a more detailed
discussion of these and other factors affecting us, see the Risk Factors described in Item 1A of this
Annual Report on Form 10-K. We do not undertake any obligation to revise these forward-looking
statements to reflect future events.

General

Triumph Group, Inc. (‘‘Triumph’’ or the ‘‘Company’’) was incorporated in 1993 in Delaware. Our
companies design, engineer, manufacture, repair, overhaul and distribute aircraft components, such as
hydraulic, mechanical and electromechanical control systems, aircraft and engine accessories, structural
components and assemblies, non-structural composite components, auxiliary power units, or APUs,
avionics and aircraft instruments. We serve a broad spectrum of the aerospace industry, including
original equipment manufacturers, or OEMs, of commercial, regional, business and military aircraft and
components, as well as commercial airlines and air cargo carriers.

In March 2009, we acquired Merritt Tool Company, Inc. (now Triumph Structures—East Texas),

Saygrove Defence & Aerospace Group Limited (now Triumph Actuation & Motion Control Systems—
UK), the aviation segment of Kongsberg Automotive Holdings ASA (now Triumph Controls—UK and
Triumph Controls—Germany) and The Mexmil Company, LLC (now Triumph Insulation Systems),
collectively the ‘‘fiscal 2009 acquisitions’’. Through the addition of Triumph Actuation & Motion
Control Systems—UK, we have added advanced control products for flight actuation and motor control
applications in all-electric aircraft and Unmanned Aerial Vehicles (‘‘UAVs’’). Through the addition of
Triumph Insulation Systems, we have enhanced our ability to provide a more comprehensive interiors
solution to our current and future customers. In addition, through the additions of Triumph
Structures—East Texas, Triumph Controls—UK and Triumph Controls—Germany, we have expanded
our capacity and increased our market share in structural components and cable control systems. Also
in March 2009, we announced that we will establish a new manufacturing facility in Zacatecas, Mexico
to complement our existing manufacturing sites. Our investment is initially expected to amount to as
much as $20 million over the next 24 months and will involve a significant number of our operating
companies and a wide range of capabilities and technologies.

Products and Services

We offer a variety of products and services to the aerospace industry through two groups of
operating businesses: (i) Triumph Aerospace Systems Group, whose companies design, engineer and
manufacture a wide range of proprietary and build-to-print components, assemblies and systems for the
global aerospace OEM market; and (ii) Triumph Aftermarket Services Group, whose companies serve

aircraft fleets, notably commercial airlines, the U.S. military and cargo carriers, through the
maintenance, repair and overhaul of aircraft components and accessories manufactured by third parties.

Our Aerospace Systems Group consists of companies that service the full spectrum of aerospace

customers, which include aerospace OEMs and the top-tier manufacturers who supply them and
airlines, air cargo carriers, and domestic and foreign militaries. This group utilizes its capabilities to
design, engineer and build complete mechanical, electromechanical and hydraulic systems, while
continuing to broaden the scope of detailed parts and assemblies that we supply to the aerospace
market. Customers typically return such systems to us for repairs and overhauls and spare parts. This
group also includes companies performing complex manufacturing, machining and forming processes
for a full range of structural components, as well as complete assemblies and subassemblies.

The products that companies within this group design, engineer, build and repair include:

(cid:127) Main engine gear box assemblies

(cid:127) High lift actuation

(cid:127) Hydraulic systems

(cid:127) Landing gear actuation systems

(cid:127) Primary and secondary flight control systems

(cid:127) Thermal management systems

(cid:127) Wing spars and stringers

(cid:127) Stretch-formed leading edges and fuselage skins

(cid:127) Formed structural sheet metal components

(cid:127) Monolithic floors, bulkheads and frames

(cid:127) Floor beams

(cid:127) Landing gear components and assemblies

(cid:127) Complex composite structures

(cid:127) Composite floor panels, environmental control system ducting and non-structural composite

flight deck, thermal-acoustic insulation and other interior components

(cid:127) Bonded components

Our Aftermarket Services Group serves a diverse group of customers which includes airlines, air
cargo carriers, domestic and foreign militaries and third-party repair and overhaul providers. This group
operates one of the world’s largest independent APU repair and overhaul business and endeavors to be
the vendor of choice for airborne structures, airframe and main engine accessories and component
repair and overhaul to our customers as they continue to consolidate vendors. We will also continue to
develop Federal Aviation Administration, or FAA, approved Designated Engineering Representative, or
DER, and Special Federal Aviation Regulation 36, or SFAR 36, proprietary repair procedures for the
components we repair and overhaul. Companies in our aftermarket services group repair and overhaul
various components for the aviation industry including:

(cid:127) APUs

(cid:127) Nacelles, thrust reversers and flight control surfaces

(cid:127) Engine accessories, including main engine fuel pumps

(cid:127) Constant speed drives, integrated drive generators and air-cycle machines

(cid:127) Cockpit instrumentation

(cid:127) Interior sidewalls, ceiling panels and overhead bins

(cid:127) Ground support equipment

Certain financial information about our two segments can be found in Note 22 of ‘‘Notes to

Consolidated Financial Statements.’’

Proprietary Rights

We benefit from our proprietary rights relating to designs, engineering and manufacturing

processes and repair and overhaul procedures. For some products, our unique manufacturing
capabilities are required by the customer’s specifications or designs, thereby necessitating reliance on us
for the production of such specially designed products. We also hold two SFAR 36 certifications that
permit us to develop proprietary repair procedures to be used in some repair and overhaul processes.

We view our name and mark as significant to our business as a whole. Our products are protected

by a portfolio of patents, trademarks, licenses or other forms of intellectual property that expire at
various dates in the future. We develop and acquire new intellectual property on an ongoing basis and
consider all of our intellectual property to be valuable. However, based on the broad scope of our
product lines, management believes that the loss or expiration of any single intellectual property right
would not have a material effect on our results of operations, our financial position or our business
segments. Our policy is to file applications and obtain patents for our new products as appropriate,
including product modifications and improvements. While patents generally expire 20 years after the
patent application filing date, new patents are issued to us on a regular basis.

In our overhaul and repair businesses, OEMs of equipment that we maintain for our customers
increasingly include language in repair manuals that relate to their equipment asserting broad claims of
proprietary rights to the contents of the manuals used in our operations. There can be no assurance
that OEMs will not try to enforce such claims including the possible use of legal proceedings. In the
event of such legal proceedings, there can be no assurance that such actions against the Company will
be unsuccessful. However, we believe that our use of manufacture and repair manuals is lawful.

Raw Materials and Replacement Parts

We purchase raw materials, primarily consisting of extrusions, forgings, castings, aluminum and

titanium sheets and shapes, from various vendors. We also purchase replacement parts which are
utilized in our various repair and overhaul operations. We believe that the availability of raw materials
to us is adequate to support our operations.

Operating Locations

We conduct our business through operating companies and divisions. The following chart describes

the operations, customer base and certain other information with respect to our principal operating
locations at April 30, 2009:

Operation

Subsidiary

TRIUMPH AEROSPACE SYSTEMS GROUP

Construction
Brevetees
d’Alfortville

Construction
Brevetees
d’Alfortville SAS

Alfortville, France Manufactures

Operating
Location

Business

Type of Customers

Number of
Employees

Triumph Actuation &
Motion Control
Systems

Triumph Actuation
Systems—
Clemmons(1)

Triumph Actuation
Systems—
Freeport(1)

Triumph
Actuation &
Motion Control
Systems—
UK, Ltd.
(formerly
Saygrove
Defence &
Aerospace
Group, Ltd.)

Triumph
Actuation
Systems, LLC

Buckley, UK

Clemmons, NC

Freeport, NY

Triumph Actuation
Systems—
Connecticut

Triumph
Actuation
Systems—
Connecticut, LLC

Bloomfield, CT
East Lyme, CT
Bethel, CT

260

154

Commercial and
Military OEMs,
Ground Transportation
and Marine OEMs.

Commercial, General
Aviation, and Military
OEMs.

mechanical ball bearing
control assemblies for
the aerospace, ground
transportation, defense
and marine industries.

Designs and builds
proprietary advanced
control products for
flight actuation and
motor control
applications in all
electrical aircraft and
Unmanned Aerial
Vehicles (‘‘UAVs’’).

Commercial, General
Aviation, and Military
OEMs; Commercial

Designs, manufactures
and repairs complex
hydraulic and
hydromechanical aircraft Airlines, General
components and
systems, such as variable Aftermarket.
displacement pumps and
motors, linear actuators
and valves, and cargo
door actuation systems.

Aviation and Military

Commercial, General
Aviation, and Military
OEMs; Military
Aftermarket.

Operation

Subsidiary

Triumph Actuation
Systems—
Valencia(1)

Triumph
Actuation
Systems—
Valencia, Inc.

Operating
Location

Valencia, CA

Triumph Aerospace
Systems—Newport
News

Triumph
Aerospace
Systems—
Newport
News, Inc.

Newport News,
VA
San Diego, CA
Huntsville, AL
New Haven, CT

Triumph Aerospace
Systems—Seattle

Triumph
Actuation
Systems—
Connecticut, LLC

Redmond, WA
Rochester, NY

Triumph Aerospace
Systems—
Wichita(1)

Triumph
Aerospace
Systems—
Wichita, Inc.

Wichita, KS

Business

Type of Customers

Commercial, General
Aviation, and Military
OEMs.

Number of
Employees

222

Commercial and
Military OEMs;
Commercial and
Military Aftermarket.

150

Commercial, General
Aviation and Military
OEMs.

Commercial and
General Aviation
OEMs; General
Aviation Aftermarket.

143

Designs, manufactures
and repairs complex
hydraulic and
hydromechanical aircraft
components and
systems, such as
accumulators, actuators,
complex valve packages,
and landing gear retract
actuators.

System engineering and
integration for landing
gear, hydraulic,
deployment, cargo door
and electro-mechanical
type systems.
Capabilities include
design, analysis and
testing to support these
types of systems and
components.

Designs and
manufactures aircraft
windows, sheet metal
assemblies (wing spars
and leading edges),
pilot/co-pilot control
wheels, cockpit sun
visors, and structural
composite parts for the
aerospace industry.

Operation

Subsidiary

Triumph Composite
Systems

Triumph
Composite
Systems, Inc.

Operating
Location

Spokane, WA

Triumph Controls(1)

Triumph
Controls, LLC

North Wales, PA
Shelbyville, IN

Business

Type of Customers

Manufactures interior
non-structural
composites for the
aviation industry,
including environmental
control system ducting,
floor panels, aisle stands
and glare shields.

Designs and
manufactures
mechanical and
electromechanical
control systems.

Commercial, General
Aviation, and Military
OEMs; Commercial
Aftermarket.

Commercial, General
Aviation and Military
OEMs and
Aftermarket.

Triumph Controls—
Germany

Triumph
Controls—
Germany, GmbH
(formerly
aviation segment
of Kongsberg
Automotive)

Heiligenhaus,
Germany

Produces and repairs
Commercial and
cable control systems for Military OEMs.
ground, flight, engine
management and cabin
comfort features in
aircraft.

Triumph Controls—
UK

Triumph
Controls—
UK, Ltd.

Triumph
Fabrications—Fort
Worth(1)

Triumph
Fabrication—
Fort Worth, Inc.

Triumph
Fabrications—Hot
Springs

Triumph
Fabrications—
Hot
Springs, Inc.

Basildon, UK

Fort Worth, TX

Hot Springs, AR

Triumph
Fabrications—
Shelbyville

The Triumph
Group
Operations, Inc.

Shelbyville, IN

Commercial, General
Aviation and Military
OEMs and
Aftermarket.

Commercial, General
Aviation and Military
OEMs.

Manufactures metallic/
composite bonded
components and
assemblies.

Produces complex sheet
metal parts and
assemblies, titanium hot
forming, and performs
chem-milling and other
metal finishing
processes.

Produces aircraft
fuselage skins, leading
edges and web
assemblies through the
stretch forming of sheet,
extrusion, rolled shape
and light plate metals.

Number of
Employees

478

154

136

381

117

Number of
Employees

241

449

928

Operation

Subsidiary

Operating
Location

El Cajon, CA

Chandler, AZ

Triumph
Fabrications—San
Diego, Inc.

Triumph
Engineered
Solutions, Inc.

Triumph Gear
Systems, Inc.

Park City, UT

Macomb, MI

Business

Type of Customers

OEMs.

Produces complex
Commercial, General
welded and riveted sheet Aviation and Military
metal assemblies for
aerospace applications.
Components include
exhaust systems, ducting,
doors, panels, control
surfaces and engine
components.

Military OEMs and
Aftermarket.

Specializes in the design, Commercial and
development,
manufacture, sale and
repair of gearboxes,
high-lift flight control
actuators, gear-driven
actuators and gears for
the aerospace industry.

Triumph
Fabrications—
San Diego(1)

Triumph
Fabrications—
Phoenix

Triumph Gear
Systems—Park
City(1)

Triumph Gear
Systems—Macomb(1)

Triumph Insulation
Systems

Triumph Northwest

Triumph Processing

Triumph Structures—
East Texas

Triumph Structures—
Kansas City

Triumph Gear
Systems—
Macomb, Inc.

Triumph
Insulation
Systems, LLC
(formerly The
Mexmil
Company, LLC)

The Triumph
Group
Operations, Inc.

Triumph
Processing, Inc.

Triumph
Structures—East
Texas, Inc.
(formerly Merritt
Tool Company,
Inc.)

Triumph
Structures—
Kansas City, Inc.

Santa Ana, CA
Mexicali, Mexico
Beijing, China(3)

Designs, manufactures
and repairs thermal-
acoustic insulation
systems for commercial
aerospace applications.

Commercial and
Military OEMs.

Albany, OR

Lynwood, CA

Kilgore, TX

Machines and fabricates Military, Medical and
refractory, reactive, heat
and corrosion-resistant
precision products.

Electronic OEMs.

Provides high-quality
finishing services to the
aerospace, military and
commercial industries.

Commercial, General
Aviation, and Military
OEMs.

Commercial and
Manufactures structural
components specializing Military OEMs.
in complex precision
machining primarily for
commercial and military
aerospace programs.

Grandview, MO

Manufactures precision
machined parts and
mechanical assemblies
for the aviation,
aerospace and defense
industries.

Commercial and
Military OEMs.

136

Business

Type of Customers

Commercial and
Military OEMs.

Number of
Employees

134

Manufactures high
quality structural and
dynamic parts and
assemblies for
commercial and military
aerospace programs.

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.

Specializes in complex,
high speed monolithic
precision machining,
turning, subassemblies,
and sheet metal
fabrication, serving
domestic and
international aerospace
customers.

Designs, manufactures
and repairs aircraft
thermal transfer
components and
systems.

Commercial, General
Aviation and Military
OEMs.

334

Commercial and
Military OEMs.

168

Commercial, General
Aviation and Military
OEMs.

177

Operation

Subsidiary

Triumph Structures—
Long Island

Triumph
Structures—
Long Island, LLC

Operating
Location

Westbury, NY

Triumph Structures—
Los Angeles

Triumph
Structures—
Los Angeles, Inc.

Chatsworth, CA
City of Industry,
CA
Walnut, CA

Triumph Structures—
Wichita

Triumph
Structures—
Wichita, Inc.

Wichita, KS

Triumph Thermal
Systems(1)

Triumph
Thermal Systems, Inc.

Forest, OH

Business

Type of Customers

Number of
Employees

125

Commercial, General
Aviation and Military
Aftermarket.

Commercial and
Military Aftermarket.

119

Commercial, General
Aviation and Military
Aftermarket.

Commercial
Aftermarket.

Commercial, General
Aviation and Military
Aftermarket.

114

137

128

109

Provides maintenance
services for engine and
air frame 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.

Repairs and overhauls
auxiliary power units
(APUs) and related
accessories; sells, leases
and exchanges APUs,
related components and
other aircraft material.

Repairs and overhauls
fan reversers, nacelle
components, flight
control surfaces and
other aerostructures.

Repairs and overhauls
complex aircraft
operational components,
such as auxiliary power
units (APUs), nacelles,
constant speed drives,
fan reversers and related
accessories.

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.

Operation

Subsidiary

TRIUMPH AFTERMARKET SERVICES GROUP

Triumph Accessory
Services—
Wellington(1)(2)

The Triumph
Group
Operations, Inc.

Operating
Location

Wellington, KS
Milwaukee, WI

Triumph Accessory
Services—Grand
Prairie(1)

Triumph
Accessory
Services—Grand
Prairie, Inc.

Grand Prairie,
TX

Triumph Air
Repair(1)(2)

The Triumph
Group
Operations, Inc.

Phoenix, AZ

Triumph Airborne
Structures(1)

Triumph
Airborne
Structures, Inc.

Hot Springs, AR

Triumph Aviation
Services—Asia(1)

Triumph
Aviation Services
Asia Ltd.

Chonburi,
Thailand

Triumph Engines—
Tempe(1)

Triumph
Engineered
Solutions, Inc.

Tempe, AZ
Chandler, AZ

Operation

Subsidiary

Triumph
Instruments—
Burbank(1)

Triumph
Instruments—
Burbank, Inc.

Operating
Location

Burbank, CA

Triumph
Instruments—Ft.
Lauderdale(1)

Triumph
Instruments—
Austin(1)

Triumph Interiors

Triumph
Instruments, Inc.

Ft. Lauderdale,
FL

Triumph
Interiors, LLC

Austin, TX

Oakdale, PA(1)
Grand Prairie,
TX(1)

Triumph Logistics—
UK

Triumph
Logistics (UK) Ltd.

Basingstoke, UK

Triumph San Antonio
Support Center

The Triumph Group
Operations, Inc.

San Antonio, TX

Business

Type of Customers

Number of
Employees

103

Commercial, General
Aviation and Military
Aftermarket.

Commercial
Aftermarket.

Commercial, General
Aviation and Military
Aftermarket.

Military Aftermarket.

Repairs and overhauls
aircraft instrumentation,
power systems and
avionics. Distributes and
repairs aircraft smoke
detectors and industrial
instrumentation.

Specializes in the repair,
overhaul and exchange
of electromechanical
and pneumatic aircraft
instruments.

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.

Provides distribution,
exchange and lease
programs for auxiliary
power units (APUs),
APU components and
components supported
by Triumph Group
Companies.

Provides maintenance
services for aircraft
ground support
equipment.

Operation

Subsidiary

DISCONTINUED OPERATIONS

Operating
Location

Business

Type of Customers

Number of
Employees

Triumph Precision
Castings

Triumph Precision
Castings Co.

Chandler, AZ

Commercial and
Military Aftermarket.

Applies advanced
directionally solidified
(polycrystal or single
crystal) and Equiax
investment casting
processes to produce
products for the
commercial and defense
gas turbine market.

(1) Designates FAA-certified repair station.

(2) Designates SFAR 36 certification.

(3)

Through an affiliate, Triumph Insulation Systems, LLC manages a 50% interest in a joint venture operating in Beijing China, with
Beijing Kailan Aviation Technology Co., Ltd., an unrelated party based in China. Our interest in the joint venture is accounted for
in our consolidated financial statements on the equity method.

Sales, Marketing and Engineering

While each of our operating companies maintains responsibility for selling and marketing its
specific products, we have developed two group marketing teams focused on cross-selling our broad
capabilities. The focus of these two marketing organizations, one for the Aerospace Systems Group and
one for the Aftermarket Services Group, is to sell systems, integrated assemblies and repair and
overhaul services, reaching across our operating companies, to our OEM, military, airline and air cargo
customers. We also conduct sales activities in the Wichita, Kansas area through Triumph Wichita
Support Center, a third party sales organization dedicated solely to a sales effort on behalf of Triumph
Group companies, which is staffed by sales professionals focused on Boeing IDS, Spirit AeroSystems,
Cessna, Bombardier/Learjet and Raytheon. In certain limited cases, we use independent, commission-
based representatives to facilitate responsiveness to each customer’s changing needs and current trends
in each market/geographic region in which we operate.

All three of these marketing organizations operate as the front-end of the selling process,

establishing or maintaining relationships, identifying opportunities to leverage our brand, and providing
service for our customers. Each individual operating company is responsible for its own engineering
and technical support, pricing, manufacturing and product support. Also, within the Aerospace Systems
Group, we have created a group engineering function to provide integrated solutions to meet our
customer needs by designing systems that integrate the capabilities of our companies.

A significant portion of our government and defense contracts are awarded on a competitive
bidding basis. We generally do not bid or act as the primary contractor, but will typically bid and act as
a subcontractor on contracts on a fixed fee basis. We generally sell to our other customers on a fixed
fee, negotiated contract or purchase order basis.

Backlog

We have a number of long-term agreements with several of our customers. These agreements
generally describe the terms under which the customer may issue purchase orders to buy our products
and services during the term of the agreement. These terms typically include a list of the products or
repair services customers may purchase, initial pricing, anticipated quantities and, to the extent known,
delivery dates. In tracking and reporting our backlog, however, we only include amounts for which we
have actual purchase orders with firm delivery dates or contract requirements generally within the next
24 months, which primarily relates to sales to our OEM customer base. Purchase orders issued by our
aftermarket customers are usually completed within a short period of time. As a result, our backlog
data relates primarily to the OEM customers. The backlog information set forth below does not include
the sales that we expect to generate from long-term agreements for which we do not have actual
purchase orders with firm delivery dates.

As of March 31, 2009, our continuing operations had outstanding purchase orders representing an
aggregate invoice price of approximately $1,323 million, of which $1,282 million and $42 million relate
to the Aerospace Systems Group and the Aftermarket Services Group, respectively. As of March 31,
2008, our continuing operations had outstanding purchase orders representing an aggregated invoice
price of approximately $1,278 million, of which $1,246 million and $32 million relate to the Aerospace
Systems Group and the Aftermarket Services Group, respectively. Of the existing backlog of
$1,323 million, approximately $452 million will not be shipped by March 31, 2010.

Dependence on Significant Customer

For the year ended March 31, 2009, the Boeing Company, or Boeing, represented approximately
23% of the net sales. A significant reduction in sales to Boeing could have a material adverse impact
on our financial position, results of operations, and cash flows.

United States and International Operations

Our revenues from our continuing operations to customers in the United States for fiscal years
2009, 2008 and 2007 were approximately $974 million, $914 million, and $735 million, respectively. Our
revenues from our continuing operations to customers in all other countries for fiscal years 2009, 2008
and 2007 were approximately $267 million, $237 million, and $202 million, respectively.

As of March 31, 2009 and 2008, our long-lived assets for our continuing operations located in the

United States were approximately $851 million and $775 million, respectively. As of March 31, 2009
and 2008, our long-lived assets for our continuing operations located in all other countries were
approximately $63 million and $25 million, respectively.

Competition

We compete primarily with the top-tier systems integrators and manufacturers that supply them,

some of which are divisions or subsidiaries of other large companies, in the manufacture of aircraft
systems components and subassemblies. OEMs are increasingly focusing on assembly activities while
outsourcing more manufacturing and repair to third parties, and therefore are less of a competitive
force than in previous years.

Competition for the repair and overhaul of aviation components comes from three primary

sources, some with greater financial and other resources than we have: OEMs, major commercial
airlines and other independent repair and overhaul companies. Some major commercial airlines
continue to own and operate their own service centers, while others have begun to sell or outsource
their repair and overhaul services to other aircraft operators or third parties. Large domestic and
foreign airlines that provide repair and overhaul services typically provide these services not only for
their own aircraft but for other airlines as well. OEMs also maintain service centers which provide
repair and overhaul services for the components they manufacture. Other independent service
organizations also compete for the repair and overhaul business of other users of aircraft components.

Participants in the aerospace industry compete primarily on the basis of breadth of technical

capabilities, quality, turnaround time, capacity and price.

Government Regulation and Industry Oversight

The aerospace industry is highly regulated in the United States by the FAA and in other countries
by similar agencies. We must be certified by the FAA and, in some cases, by individual OEMs, in order
to engineer and service parts and components used in specific aircraft models. If material
authorizations or approvals were revoked or suspended, our operations would be adversely affected.
New and more stringent government regulations may be adopted, or industry oversight heightened, in
the future and these new regulations, if enacted, or any industry oversight, if heightened, may have an
adverse impact on us.

We must also satisfy the requirements of our customers, including OEMs, that are subject to FAA

regulations, and provide these customers with products and repair services that comply with the
government regulations applicable to aircraft components used in commercial flight operations. The
FAA regulates commercial flight operations and requires that aircraft components meet its stringent
standards. In addition, the FAA requires that various maintenance routines be performed on aircraft
components, and we currently satisfy these maintenance standards in our repair and overhaul services.
Several of our operating locations are FAA-approved repair stations.

Generally, the FAA only grants licenses for the manufacture or repair of a specific aircraft
component, rather than the broader licenses that have been granted in the past. The FAA licensing
process may be costly and time-consuming. In order to obtain an FAA license, an applicant must satisfy
all applicable regulations of the FAA governing repair stations. These regulations require that an

applicant have experienced personnel, inspection systems, suitable facilities and equipment. In addition,
the applicant must demonstrate a need for the license. Because an applicant must procure
manufacturing and repair manuals from third parties relating to each particular aircraft component in
order to obtain a license with respect to that component, the application process may involve
substantial cost.

The license approval processes for the European Aviation Safety Agency (EASA was formed in
2002 and is handling most of the responsibilities of the national aviation authorities in Europe, such as
the United Kingdom Civil Aviation Authority), which regulates this industry in the European Union,
the Civil Aviation Administration of China, and other comparable foreign regulatory authorities are
similarly stringent, involving potentially lengthy audits.

Our operations are also subject to a variety of worker and community safety laws. For example,
the Occupational Safety and Health Act of 1970, or OSHA, mandates general requirements for safe
workplaces for all employees. In addition, OSHA provides special procedures and measures for the
handling of hazardous and toxic substances. Specific safety standards have been promulgated for
workplaces engaged in the treatment, disposal or storage of hazardous waste. We believe that our
operations are in material compliance with OSHA’s health and safety requirements.

Environmental Matters

Our business, operations and facilities are subject to numerous stringent federal, state, local and

foreign environmental laws and regulation by government agencies, including the Environmental
Protection Agency, or the EPA. Among other matters, these regulatory authorities impose requirements
that regulate the emission, discharge, generation, management, transportation and disposal of
hazardous materials, pollutants and contaminants, govern public and private response actions to
hazardous or regulated substances which may be or have been released to the environment, and require
us to obtain and maintain licenses and permits in connection with our operations. This extensive
regulatory framework imposes significant compliance burdens and risks on us. Although management
believes that our operations and our facilities are in material compliance with such laws and
regulations, future changes in these laws, regulations or interpretations thereof or the nature of our
operations or regulatory enforcement actions which may arise, may require us to make significant
additional capital expenditures to ensure compliance in the future.

Certain of our facilities, including facilities acquired and operated by us or one of our subsidiaries

have at one time or another been under active investigation for environmental contamination by federal
or state agencies when acquired, and at least in some cases, continue to be under investigation or
subject to remediation for potential environmental contamination. We are frequently indemnified by
prior owners or operators and/or present owners of the facilities for liabilities which we incur as a
result of these investigations and the environmental contamination found which pre-dates our
acquisition of these facilities, subject to certain limitations. We also maintain a pollution liability policy
that provides coverage for material liabilities associated with the clean-up of on-site pollution
conditions, as well as defense and indemnity for certain third party suits (including Superfund liabilities
at third party sites), in each case, to the extent not otherwise indemnified. This policy applies to all of
our manufacturing and assembly operations worldwide. However, if we were required to pay the
expenses related to environmental liabilities for which neither indemnification nor insurance coverage is
available, these expenses could have a material adverse effect on us.

Employees

As of March 31, 2009, for our continuing operations we employed 6,131 persons, of whom 649
were management employees, 85 were sales and marketing personnel, 728 were technical personnel,
631 were administrative personnel and 4,038 were production workers. As of March 31, 2009, for our

discontinued operations, we employed 62 persons, of whom 7 were management employees, 14 were
technical personnel, 10 were administrative personnel and 31 were production workers.

Several of our subsidiaries are parties to collective bargaining agreements with labor unions. Under
those agreements, we currently employ approximately 683 full-time employees. Currently, approximately
11.1% of our permanent employees are represented by labor unions and approximately 20.0% of net
sales are derived from the facilities at which at least some employees are unionized. Our inability to
negotiate an acceptable contract with any of these labor unions could result in strikes by the affected
workers and increased operating costs as a result of higher wages or benefits paid to union members. If
the unionized workers were to engage in a strike or other work stoppage, or other employees were to
become unionized, we could experience a significant disruption of our operations and higher ongoing
labor costs, which could have an adverse effect on our business and results of operations.

We have not experienced any material labor-related work stoppage and consider our relations with

our employees to be good.

Research and Development Expenses

Certain information about our research and development expenses for the fiscal years ended
March 31, 2009, 2008 and 2007 is available in Note 2 of ‘‘Notes to Consolidated Financial Statements.’’

Executive Officers

Name

Richard C. Ill . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .
M. David Kornblatt

Age

66
49

Position

President and Chief Executive Officer
Senior Vice President, Chief Financial Officer and
Treasurer

John B. Wright, II . . . . . . . . . . . . . .
Kevin E. Kindig . . . . . . . . . . . . . . . .

55 Vice President, General Counsel and Secretary
52 Vice President and Controller

Richard C. Ill has been our President and Chief Executive Officer and a director since 1993.
Mr. Ill is a director of P.H. Glatfelter Company, Airgas Inc. and Baker Industries and a member of the
advisory board of Outward Bound, USA.

M. David Kornblatt has been Senior Vice President and Chief Financial Officer since June 2007.

From 2006 until joining us, Mr. Kornblatt served as Senior Vice President—Finance and Chief
Financial Officer at Carpenter Technology Corporation, a manufacturer and distributor of specialty
alloys and various engineered products. From 2003 to 2005, he was Vice President and Chief Financial
Officer at York International, prior to its acquisition by Johnson Controls in December 2005. Before
that, Mr. Kornblatt was the Director of Taxes-Europe for The Gillette Company in London, England
for three years. Mr. Kornblatt is a director of Universal Stainless & Alloy Products, Inc.

John B. Wright, II has been a Vice President and our General Counsel and Secretary since 2004.
From 2001 until he joined us, Mr. Wright was a partner with the law firm of Ballard Spahr Andrews &
Ingersoll, LLP, where he practiced corporate and securities law.

Kevin E. Kindig has been our Controller since 1993 and a Vice President since April 1999.

Available Information

For more information about us, visit our website at www.triumphgroup.com. The contents of the
website are not part of this Annual Report on Form 10-K. Our electronic filings with the Securities and
Exchange Commission, or SEC (including all Forms 10-K, 10-Q and 8-K, and any amendments to these
reports) are available free of charge through our website immediately after we electronically file with or
furnish them to the SEC. These filings may also be read and copied at the SEC’s Public Reference
Room which is located at 100 F Street, N.E., Washington, D.C. 20549. Information about the operation
of the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. The SEC
maintains an Internet site that contains reports, proxy and information statements, and other
information regarding issuers who file electronically with the SEC at www.sec.gov.

Item 1A. Risk Factors

Factors that have an adverse impact on the aerospace industry may adversely affect our results of
operations and liquidity. A substantial percentage of our gross profit and operating income was derived
from commercial aviation for fiscal year 2009. Our operations are focused on designing, engineering
and manufacturing aircraft components for new aircraft, selling spare parts and performing repair and
overhaul services on existing aircraft and aircraft components. Therefore, our business is directly
affected by economic factors and other trends that affect our customers in the aerospace industry,
including a possible decrease in outsourcing by OEMs and aircraft operators or projected market
growth that may not materialize or be sustainable. We are also significantly dependent on sales to the
commercial aerospace market, which has been cyclical in nature with significant downturns in the past.
When these economic and other factors adversely affect the aerospace industry, they tend to reduce the
overall customer demand for our products and services, which decreases our operating income.
Economic and other factors that might affect the aerospace industry may have an adverse impact on
our results of operations and liquidity. The financial condition of our airline customers is a concern and
thereby introduces credit risk with some of our significant airline customers, as well as introducing
negative implications for their ability to fund the acquisition of new aircraft for their fleet. In addition,
last year’s dramatic rise in energy costs significantly increased the price of fuel to the airlines resulting
in additional pressure on operating costs. These or other events may lead to further declines in the
worldwide aerospace industry that could further adversely affect our business and financial condition.

Cancellations, reductions or delays in customer orders may adversely affect our results of operations.
Our overall operating results are affected by many factors, including the timing of orders from large
customers and the timing of expenditures to manufacture parts and purchase inventory in anticipation
of future sales of products and services. A large portion of our operating expenses are relatively fixed.
Because several of our operating locations typically do not obtain long-term purchase orders or
commitments from our customers, they must anticipate the future volume of orders based upon the
historic purchasing patterns of customers and upon our discussions with customers as to their
anticipated future requirements. These historic patterns may be disrupted by many factors, including
changing economic conditions, inventory adjustments, or work stoppages or labor disruptions at our
customers. Cancellations, reductions or delays in orders by a customer or group of customers could
have a material adverse effect on our business, financial condition and results of operations.

Our acquisition strategy exposes us to risks, including the risk that we may not be able to successfully

integrate acquired businesses. We have a consistent strategy to grow, in part, by the acquisition of
additional businesses in the aerospace industry and are continuously evaluating various acquisition
opportunities, including those outside the United States and those that are larger than the acquisitions
we have made previously. However, we do not have any definitive agreements at this time to acquire
additional businesses. Our ability to grow by acquisition is dependent upon, among other factors, the
availability of suitable acquisition candidates. Growth by acquisition involves risks that could adversely
affect our operating results, including difficulties in integrating the operations and personnel of

acquired companies, the potential amortization of acquired intangible assets, the potential impairment
of goodwill and the potential loss of key employees of acquired companies. We may not be able to
consummate acquisitions on satisfactory terms or, if any acquisitions are consummated, satisfactorily
integrate these acquired businesses.

A significant decline in business with a key customer could have a material adverse effect on us. For

the year ended March 31, 2009, The Boeing Company, or Boeing Commercial, Military & Space,
represented approximately 23% of net sales. Accordingly, a significant reduction in purchases by this
customer could have a material adverse impact on our financial position, results of operations, and cash
flows. In addition, some of our operating locations have significant customers, the loss of whom could
have an adverse effect on those businesses.

Demand for our military and defense products is dependent upon government spending.

Approximately 36% of our sales for fiscal year 2009 were derived from the military and defense
market, which includes primarily indirect sales to the U.S. Government. The military and defense
market is largely dependent upon government budgets, particularly the U.S. defense budget, and even
an increase in defense spending may not be allocated to programs that would benefit our business.
Moreover, the new military aircraft programs in which we participate may not enter full-scale
production as expected. A change in the levels of defense spending or levels of military flight
operations could curtail or enhance our prospects in this market depending upon the programs
affected.

Our expansion into international markets may increase credit, currency and other risks. As we pursue

customers in Asia, South America and other less developed aerospace markets throughout the world,
our inability to ensure the creditworthiness of our customers in these areas could adversely impact our
overall profitability. In addition, with the acquisition of operations in the U.K., Germany, and Mexico,
along with our existing Thailand facility and as we pursue customers in other parts of the world, we will
be subject to the legal, political, social and regulatory requirements and economic conditions of other
jurisdictions. In the future, we may also make additional international capital investments, including
further acquisitions of companies outside the United States or companies having operations outside the
United States. Risks inherent to international operations include, but are not limited to, the following:

(cid:127) difficulty in enforcing agreements in some legal systems outside the United States;

(cid:127) countries may impose additional withholding taxes or otherwise tax our foreign income, impose
tariffs or adopt other restrictions on foreign trade and investment, including currency exchange
controls;

(cid:127) fluctuations in exchange rates may affect demand for our products and services and may

adversely affect our profitability in U.S. dollars;

(cid:127) inability to obtain, maintain or enforce intellectual property rights;

(cid:127) changes in general economic and political conditions in the countries in which we operate;

(cid:127) unexpected adverse changes in the laws or regulatory requirements outside the U.S., including

those with respect to environmental protection, export duties and quotas;

(cid:127) difficulty with staffing and managing widespread operations; and

(cid:127) difficulty of and costs relating to compliance with the different commercial and legal

requirements of the countries in which we operate.

We may need additional financing for acquisitions and capital expenditures and additional financing

may not be available on terms acceptable to us. A key element of our strategy has been, and continues
to be, internal growth supplemented by growth through the acquisition of additional companies and

product lines engaged in the aerospace industry. In order to grow internally, we may need to make
significant capital expenditures, such as investing in facilities in low cost countries, and may need
additional capital to do so. Our ability to grow is dependent upon, and may be limited by, among other
things, availability under our credit facility and by particular restrictions contained in our credit facility
and our other financing arrangements. In that case, additional funding sources may be needed, and we
may not be able to obtain the additional capital necessary to pursue our internal growth and acquisition
strategy or, if we can obtain additional financing, the additional financing may not be on financial terms
that are satisfactory to us, particularly in light of the current instability in the credit markets.

Competitive pressures may adversely affect us. We have numerous competitors in the aerospace
industry. We compete primarily with the top-tier systems integrators and the manufacturers that supply
them, some of which are divisions or subsidiaries of OEMs and other large companies that
manufacture aircraft components and subassemblies. Competition for the repair and overhaul of
aviation components comes from three primary sources: OEMs, major commercial airlines and other
independent repair and overhaul companies. Some of our competitors have substantially greater
financial and other resources than we have. Competitive pressures may materially adversely affect our
operating revenues and margins, and, in turn, our business and financial condition.

We may need to expend significant capital to keep pace with technological developments in our

industry. The aerospace industry is constantly undergoing development and change and it is likely that
new products, equipment and methods of repair and overhaul service will be introduced in the future.
In order to keep pace with any new developments, we may need to expend significant capital to
purchase new equipment and machines or to train our employees in the new methods of production
and service.

We may incur significant expenses to comply with new or more stringent governmental regulation. The

aerospace industry is highly regulated in the United States by the FAA and in other countries by
similar agencies. We must be certified by the FAA and, in some cases, by individual OEMs in order to
engineer and service parts and components used in specific aircraft models. If any of our material
authorizations or approvals were revoked or suspended, our operations would be adversely affected.
New or more stringent governmental regulations may be adopted, or industry oversight heightened in
the future, and we may incur significant expenses to comply with any new regulations or any
heightened industry oversight.

Some contractual arrangements with our customers may cause us to bear significant up-front costs that

we may not be able to recover. Many new aircraft programs require that major suppliers bear the cost
of design, development and engineering work associated with the development of the aircraft usually in
exchange for a long-term agreement to supply critical parts once the aircraft is in production. Boeing’s
787 and Airbus’ A350 are examples of two new aircraft programs in which we are competing in a
product development process in order to obtain eventual long term production agreements. If the
aircraft fails to reach the full production stage or we fail to win the long-term contract, the outlays we
have made in research and development and other start-up costs may not produce the anticipated
return on investment.

We may not realize our anticipated return on capital commitments made to expand our capabilities.

We continually make significant capital expenditures to implement new processes and to increase both
efficiency and capacity. Some of these projects require additional training for our employees and not all
projects may be implemented as anticipated. If any of these projects do not achieve the anticipated
increase in efficiency or capacity, our returns on these capital expenditures may not be as expected.

Any product liability claims in excess of insurance may adversely affect our financial condition. Our

operations expose us to potential liability for personal injury or death as a result of the failure of an
aircraft component that has been serviced by us or the failure of an aircraft component designed or

manufactured by us. While we believe that our liability insurance is adequate to protect us from these
liabilities, our insurance may not cover all liabilities. Additionally, insurance coverage may not be
available in the future at a cost acceptable to us. Any material liability not covered by insurance or for
which third party indemnification is not available could have a material adverse effect on our financial
condition.

The lack of available skilled personnel may have an adverse effect on our operations. From time to

time, some of our operating locations have experienced difficulties in attracting and retaining skilled
personnel to design, engineer, manufacture, repair and overhaul sophisticated aircraft components. Our
ability to operate successfully could be jeopardized if we are unable to attract and retain a sufficient
number of skilled personnel to conduct our business.

Any exposure to environmental liabilities may adversely affect us. Our business, operations and
facilities are subject to numerous stringent federal, state, local and foreign environmental laws and
regulations. Although management believes that our operations and facilities are in material
compliance with such laws and regulations, future changes in such laws, regulations or interpretations
thereof or the nature of our operations or regulatory enforcement actions which may arise, may require
us to make significant additional capital expenditures to ensure compliance in the future. Certain of
our facilities, including facilities acquired and operated by us or one of our subsidiaries have at one
time or another been under active investigation for environmental contamination by federal or state
agencies when acquired and, at least in some cases, continue to be under investigation or subject to
remediation for potential environmental contamination. Individual facilities of ours have also been
subject to investigation on occasion for possible past waste disposal practices which might have
contributed to contamination at or from remote waste disposal sites. We are frequently indemnified by
prior owners or operators and/or present owners of the facilities for liabilities which we incur as a
result of these investigations and the environmental contamination found which pre-dates our
acquisition of these facilities, subject to certain limitations, including but not limited to limitations on
the survival period of the indemnity. We also maintain a pollution liability policy that provides coverage
for material liabilities associated with the clean-up of on-site pollution conditions, as well as defense
and indemnity for certain third party suits (including Superfund liabilities at third party sites), in each
case, to the extent not otherwise indemnified. This policy applies to all of our manufacturing and
assembly operations worldwide. However, if we were required to pay the expenses related to
environmental liabilities for which neither indemnification nor insurance coverage is available, these
expenses could have a material adverse effect on our financial position, results of operations, and cash
flows.

We are currently involved in intellectual property litigation, which could have a material and adverse

impact on our profitability, and we could become so involved again in the future. We and other
companies in our industry possess certain proprietary rights relating to designs, engineering,
manufacturing processes and repair and overhaul procedures. In the event that we believe that a third
party is infringing upon our proprietary rights, we may bring an action to enforce such rights. In
addition, third parties may claim infringement by us with respect to their proprietary rights and may
initiate legal proceedings against us in the future. The expense and time of bringing an action to
enforce such rights or defending against infringement claims can be significant, as in the case of the
litigation arising out of the claims of Eaton Corporation discussed in ‘‘Item 3. Legal Proceedings.’’ The
expense and time associated with such litigation may have a material and adverse impact on our
profitability. In addition, in our overhaul and repair businesses, OEMs of equipment that we maintain
for our customers increasingly include language in repair manuals relating to their equipment asserting
broad claims of proprietary rights to the contents of the manuals used in our operations. Although we
believe that our use of manufacture and repair manuals is lawful, there can be no assurance that
OEMs will not try to enforce such claims, including through the possible use of legal proceedings, or
that any such actions will be unsuccessful.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

Our executive offices are located in Wayne, Pennsylvania, where we lease 11,691 square feet of

space. In addition, as of May 15, 2009, we owned or leased the following operating facilities.

Location

Description

TRIUMPH AEROSPACE SYSTEMS GROUP
Hot Springs, AR . . . . . . . . . . . . . . Manufacturing facility/office
Chandler, AZ . . . . . . . . . . . . . . . . Manufacturing facility/office
Chatsworth, CA . . . . . . . . . . . . . . . Manufacturing facility/office
Chatsworth, CA . . . . . . . . . . . . . . . Manufacturing facility
City of Industry, CA . . . . . . . . . . . . Manufacturing facility/office
El Cajon, CA . . . . . . . . . . . . . . . . . Manufacturing facility/office
Lynwood, CA . . . . . . . . . . . . . . . . . Processing and finishing facility/office
Lynwood, CA . . . . . . . . . . . . . . . . . Office/warehouse/aerospace metal processing
San Diego, CA . . . . . . . . . . . . . . . Force measurement systems facility
Santa Ana, CA . . . . . . . . . . . . . . . Office
Valencia, CA . . . . . . . . . . . . . . . . . Manufacturing facility/office
Walnut, CA . . . . . . . . . . . . . . . . . . Manufacturing facility/office
Bethel, CT . . . . . . . . . . . . . . . . . . . Office
Bloomfield, CT . . . . . . . . . . . . . . . Manufacturing facility/office
East Lyme, CT . . . . . . . . . . . . . . . . Manufacturing facility/office
New Haven, CT . . . . . . . . . . . . . . . Engineering/manufacturing
Alfortville, France . . . . . . . . . . . . . Manufacturing facility/office
Heiligenhaus, Germany . . . . . . . . . Manufacturing facility/office
Shelbyville, IN . . . . . . . . . . . . . . . . Manufacturing facility/office
Shelbyville, IN . . . . . . . . . . . . . . . . Manufacturing facility/office
Wichita, KS . . . . . . . . . . . . . . . . . . Manufacturing facility/office
Wichita, KS . . . . . . . . . . . . . . . . . . Manufacturing facility/office
Macomb, MI . . . . . . . . . . . . . . . . . Manufacturing facility/office
Mexicali, Mexico . . . . . . . . . . . . . . Manufacturing facility/office
Grandview, MO . . . . . . . . . . . . . . . Manufacturing facility/office
Freeport, NY . . . . . . . . . . . . . . . . . Manufacturing facility/office/warehouse
Rochester, NY . . . . . . . . . . . . . . . . Engineering Office
Westbury, NY . . . . . . . . . . . . . . . . Manufacturing facility/office
Westbury, NY . . . . . . . . . . . . . . . . Aerospace Metal Processing
Clemmons, NC . . . . . . . . . . . . . . . Manufacturing facility/repair/office
Forest, OH . . . . . . . . . . . . . . . . . . Manufacturing facility/office
Albany, OR . . . . . . . . . . . . . . . . . . Machine shop/office
North Wales, PA . . . . . . . . . . . . . . Manufacturing facility/office
Fort Worth, TX . . . . . . . . . . . . . . . Manufacturing facility/office
Kilgore, TX . . . . . . . . . . . . . . . . . . Manufacturing facility/office
. . . . . . . . . . . . . . . . Manufacturing facility/office
Basildon, UK.
. . . . . . . . . . . . . . . . Manufacturing facility/office
Buckley, UK.
Park City, UT . . . . . . . . . . . . . . . . Manufacturing facility/office
Newport News, VA . . . . . . . . . . . . Engineering/Manufacturing/office
Redmond, WA . . . . . . . . . . . . . . . . Manufacturing facility/office
Spokane, WA . . . . . . . . . . . . . . . . . Manufacturing facility/office

Square
Footage

Owned/
Leased

217,348 Owned
34,263 Leased
101,900 Owned
21,600 Leased
75,000 Leased
122,390 Leased
59,662 Leased
105,000 Leased
7,000 Leased
15,250 Leased
86,970 Leased
126,000 Leased
1,650 Leased
29,825 Leased
59,550 Owned
2,400 Leased
7,500 Leased
2,200 Leased
193,905 Owned
100,000 Owned
145,200 Leased
130,275 Leased
86,000 Leased
261,000 Leased
78,000 Owned
29,000 Owned
5,000 Leased
93,500 Leased
12,500 Leased
110,000 Owned
125,000 Owned
25,000 Owned
111,400 Owned
114,100 Owned
83,000 Owned
1,900 Leased
8,000 Leased
180,000 Owned
93,000 Leased
19,404 Leased
392,000 Owned

Location

Description

TRIUMPH AFTERMARKET SERVICES GROUP
Hot Springs, AR . . . . . . . . . . . . . . Machine shop/office
Chandler, AZ . . . . . . . . . . . . . . . . Thermal processing facility/office
Phoenix, AZ . . . . . . . . . . . . . . . . . Repair and overhaul shop/office
Phoenix, AZ . . . . . . . . . . . . . . . . . Repair and overhaul/office
Tempe, AZ . . . . . . . . . . . . . . . . . . Manufacturing facility/office
Tempe, AZ . . . . . . . . . . . . . . . . . . Machine shop
Tempe, AZ . . . . . . . . . . . . . . . . . . Machine shop
Burbank, CA . . . . . . . . . . . . . . . . .
Basingstoke, UK . . . . . . . . . . . . . . Repair and overhaul/office
Ft. Lauderdale, FL . . . . . . . . . . . . .
Wellington, KS . . . . . . . . . . . . . . . . Repair and overhaul/office
Oakdale, PA . . . . . . . . . . . . . . . . . Production/warehouse/office
Austin, TX . . . . . . . . . . . . . . . . . .
Dallas, TX . . . . . . . . . . . . . . . . . . . Production/office
Grand Prairie, TX . . . . . . . . . . . . . Repair and overhaul shop/office
San Antonio, TX . . . . . . . . . . . . . . Repair and overhaul/office
Chonburi, Thailand . . . . . . . . . . . . Repair and overhaul shop/office
Milwaukee, WI . . . . . . . . . . . . . . . Office

Instrument shop/warehouse/office

DISCONTINUED OPERATIONS
Chandler, AZ . . . . . . . . . . . . . . . . Casting facility/office

Square
Footage

Owned/
Leased

219,728 Owned
15,000 Leased
50,000 Leased
24,796 Leased
13,500 Owned
9,300 Owned
32,000 Owned
23,000 Leased
3,350 Leased
11,700 Leased
65,000 Leased
68,000 Leased
4,500 Leased
28,602 Leased
60,000 Leased
30,000 Leased
85,000 Owned
2,600 Leased

31,000 Leased

We believe that our properties are adequate to support our operations for the foreseeable future.

Item 3. Legal Proceedings

On July 9, 2004, Eaton Corporation and several Eaton subsidiaries filed a complaint against us,

our subsidiary, Frisby Aerospace, LLC (now named Triumph Actuation Systems, LLC), certain related
subsidiaries and certain employees of ours and our subsidiaries. The complaint was filed in the Circuit
Court of the First Judicial District of Hinds County, Mississippi and alleged nineteen causes of action
under Mississippi law. In particular, the complaint alleged the misappropriation of trade secrets and
intellectual property allegedly belonging to Eaton relating to hydraulic pumps and motors used in
military and commercial aviation. Triumph Actuation Systems and the individual defendants filed
separate responses to Eaton’s claims. Triumph Actuation Systems filed counterclaims against Eaton
alleging common law unfair competition, interference with existing and prospective contracts, abuse of
process, defamation, violation of North Carolina’s Unfair and Deceptive Trade Practices Act, and
violation of the false advertising provisions of the Lanham Act. We and defendant Jeff Frisby, President
of Triumph Actuation Systems at the time the engineer defendants were hired, moved to dismiss the
complaint for lack of personal jurisdiction.

The above allegations also relate to alleged conduct that has been the subject of an investigation
by the office of the U.S. Attorney in Jackson, Mississippi. On January 22, 2004, a search warrant was
executed on the offices of Triumph Actuation Systems in connection with this investigation. Triumph
Actuation Systems cooperated with the investigation. On December 20, 2006, five engineers of Triumph
Actuation Systems who are former employees of Eaton Aerospace, LLC, were indicted by a grand jury
sitting in the Southern District of Mississippi on five counts of trade secret misappropriation, conspiracy
to misappropriate trade secrets, and mail and wire fraud. On June 15, 2007, all counts other than part
of one count were dismissed by the court, leaving a charge of conspiracy to misappropriate trade
secrets.

On October 11, 2007, the government obtained a new indictment against the same five engineer
defendants raising new charges arising out of the same investigation, which were essentially reiterated
in a second superseding indictment obtained on November 11, 2007. The defendant engineers
subsequently filed pretrial motions, including motions to dismiss. On April 25, 2008, the court granted
some of those motions and dismissed seven of the twelve counts of the second superseding indictment.
The government appealed the dismissal with respect to three of the seven counts dismissed. On
January 21, 2009, while the appeal was still pending, the government obtained a new indictment against
the five engineers containing three counts stating essentially the same charges as those covered by the
government’s appeal. On February 9, 2009, the United States Court of Appeals for the Fifth Circuit
unanimously affirmed the dismissal of one of the counts covered by the government’s appeal and
reversed as to the other two counts. The defendant engineers have filed pretrial motions, including
motions to dismiss, relating to the counts now pending against them. Trial is scheduled to commence
on September 8, 2009. No charges have been brought against Triumph Actuation Systems or us, and we
understand that neither Triumph Actuation Systems nor the Company is currently the subject of the
criminal investigation.

In the civil case, following stays of most discovery while the parties litigated a motion to dismiss

and a motion to protect the defendant engineers’ Fifth Amendment rights, discovery recommenced in
late August 2007. However, on January 4, 2008, the judge in the civil case, Judge Bobby DeLaughter,
recused himself on his own motion. The case has been reassigned to a new judge, Chief Judge W. Swan
Yerger.

On January 24, 2008, Triumph Actuation Systems filed a motion to stay all discovery in order to
review and reconsider Judge DeLaughter’s prior orders based on the ongoing federal investigation of
an alleged ex parte and inappropriate relationship between Judge DeLaughter and Ed Peters, a lawyer
representing Eaton for whom Judge DeLaughter had worked prior to his appointment to the bench.
Judge DeLaughter has since been suspended from the bench and indicted by a federal grand jury
sitting in the Northern District of Mississippi. Triumph Actuation Systems filed other motions relating
to this alleged inappropriate relationship, including a motion for sanctions. Judge Yerger has ordered
that this conduct be examined and has undertaken, along with a newly appointed Special Master, to
review Judge DeLaughter’s rulings in the case from the time Mr. Peters became involved. The court
initially stayed all other proceedings while conducting its review of the conduct of Mr. Peters, ordered
that discovery resume on October 30, 2008, and then on March 4, 2009 again stayed discovery on the
merits to focus discovery exclusively on the conduct of Mr. Peters in the litigation. Trial is presently
scheduled to begin on May 3, 2010.

It is too early to determine what, if any, exposure to liability Triumph Actuation Systems or the

Company might face as a result of the civil suit. We intend to continue to vigorously defend the
allegations contained in Eaton’s complaint and to vigorously prosecute the counterclaims brought by
Triumph Actuation Systems.

In the ordinary course of our business, we are also involved in disputes, claims, lawsuits, and

governmental and regulatory inquiries that we deem to be immaterial. Some may involve claims or
potential claims of substantial damages, fines or penalties. While we cannot predict the outcome of any
pending or future litigation or proceeding, we do not believe that any pending matter will have a
material effect, individually or in the aggregate, on our financial position or results of operations,
although no assurances can be given to that effect.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases

PART II

of Equity Securities

Range of Market Price

Our Common Stock is traded on the New York Stock Exchange under the symbol ‘‘TGI.’’ The

following table sets forth the range of high and low prices for our Common Stock for the periods
indicated:

Fiscal 2008

1st Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2nd Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3rd Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4th Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fiscal 2009

High

Low

$69.63
85.14
86.38
82.71

$73.76
58.87
46.45
47.00

$54.49
65.72
71.84
48.25

$46.16
39.20
26.89
31.12

On May 15, 2009, the reported closing price for our Common Stock was $38.74. As of May 15,
2009, there were approximately 61 holders of record of our Common Stock and we believe that our
Common Stock was beneficially owned by approximately 13,000 persons.

Dividend Policy

During fiscal 2009 and 2008, we paid cash dividends of $0.16 per share and $0.16 per share,
respectively. However, our declaration and payment of cash dividends in the future and the amount
thereof will depend upon our results of operations, financial condition, cash requirements, future
prospects, limitations imposed by credit agreements or indentures governing debt securities and other
factors deemed relevant by our board of directors. No assurance can be given that cash dividends will
continue to be declared and paid at historical levels or at all. Certain of our debt arrangements,
including our credit facility, restrict our paying dividends and making distributions on our capital stock,
except for the payment of stock dividends and redemptions of an employee’s shares of capital stock
upon termination of employment. On April 27, 2009, the Company announced that its Board of
Directors declared a regular quarterly dividend of $0.04 per share on its outstanding common stock.
The dividend is payable June 15, 2009 to shareholders of record as of May 29, 2009.

Repurchases of Stock

The following summarizes repurchases made pursuant to the Company’s share repurchase plan
during three years ended March 31, 2009. In December, 1998, we announced a program to repurchase
up to 500,000 shares of our common stock. In February 2008, the Company’s Board of Directors
authorized an increase in the Company’s existing stock repurchase program by up to an additional
500,000 shares of its common stock. From the inception of the program through March 31, 2009, we
have repurchased a total of 499,200 shares for a total purchase price of $19.2 million. As a result, as of
May 15, 2009, the Company remains able to purchase an additional 500,800 shares. Repurchases may
be made from time to time in open market transactions, block purchases, privately negotiated

transactions or otherwise at prevailing prices. No time limit has been set for completion of the
program.

Period

Total number of
shares purchased

Average price
paid per share

Total number of
shares purchased
as part of publicly
announced plans

Maximum number
of shares that may
yet be purchased
under the plans

February 1-28, 2008 . . . . . . . . . . . .

220,000

$56.10

499,200

500,800

Equity Compensation Plan Information

The information required regarding equity compensation plan information is included in our Proxy

Statement in connection with our 2009 Annual Meeting of Stockholders to be held on July 23, 2009,
under the heading ‘‘Equity Compensation Plan Information’’ and is incorporated herein by reference.

The following graph compares the cumulative 5-year total return provided shareholders on

Triumph Group, Inc.’s common stock relative to the cumulative total returns of the Russell 2000 index
and the S&P Aerospace & Defense index. An investment of $100 (with reinvestment of all dividends) is
assumed to have been made in our common stock and in each of the indexes on 3/31/2004 and its
relative performance is tracked through 3/31/2009.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among Triumph Group, Inc., The Russell 2000 Index
And The S&P Aerospace & Defense Index

$200

$180

$160

$140

$120

$100

$80

$60

$40

$20

3/04

3/05

3/06

3/07

3/08

3/09

Triumph Group, Inc.

Russell 2000

S&P Aerospace & Defense

19MAY200921001959

$100 invested on 3/31/04 in stock or index, including reinvestment of dividends. Fiscal year ended
March 31.

. . . . . . . . . . . . . . . . . . . . .
Triumph Group, Inc.
Russell 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . .
S&P Aerospace & Defense . . . . . . . . . . . . . . . . .

100.00
100.00
100.00

117.82
105.41
125.81

133.92
132.66
155.01

167.84
140.50
179.90

173.07
122.23
189.09

116.57
76.39
110.00

The stock price performance included in this graph is not necessarily indicative of future stock price

3/04

3/05

3/06

3/07

3/08

3/09

performance.

Item 6. Selected Financial Data

The following selected financial data should be read in conjunction with the Consolidated
Financial Statements and related Notes thereto and ‘‘Management’s Discussion and Analysis of
Financial Condition and Results of Operations’’ included herein.

Fiscal Years Ended March 31,

2009(1)(2)

2008(2)(3)(4)

2007(2)(4)(5)

2006(4)

2005(4)(6)

(in thousands, except per share data)

Operating Data:
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .

Cost of sales.

$1,240,378
877,744

$1,151,090
822,288

$937,327
671,838

$749,368
549,307

$676,557
504,752

Selling, general and administrative expense . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . .

Operating income . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense and other . . . . . . . . . . . . . . . . . .
. . . . . . .
(Gain) loss on early extinguishment of debt

Income from continuing operations, before income

taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax expense . . . . . . . . . . . . . . . . . . . . . .

Income from continuing operations
. . . . . . . . . . . .
Loss from discontinued operations . . . . . . . . . . . . .

362,634
162,109
48,611

151,914
11,096
(2,580)

143,398
45,586

97,812
(4,745)

328,802
159,262
43,215

126,325
13,422
—

112,903
37,161

75,742
(8,468)

265,489
135,887
35,703

93,899
11,706
5,088

77,105
26,129

50,976
(3,905)

200,061
108,063
30,827

61,171
10,304
—

50,867
11,608

39,259
(4,744)

171,805
105,382
29,500

36,923
11,259
—

25,664
6,437

19,227
(7,799)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .

93,067

67,274

$ 47,071

$ 34,515

$ 11,428

Earnings per share:

Income from continuing operations:

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends declared per share . . . . . . . . . . . . . .

$
$
$

Shares used in computing earnings per share:

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.97
5.90
0.16

16,384
16,584

$
$
$

4.59
4.32
0.16

16,497
17,540

$
$
$

3.14
3.11
0.12

16,220
16,413

$
$

2.47
2.45
—

$
$

1.21
1.20
—

15,920
16,060

15,877
15,971

2009(1)(2)

2008(2)(3)(4)

2007(2)(4)(5)

2006(4)

2005(4)(6)

As of March 31,

(in thousands)

Balance Sheet Data:
Working capital
. . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 372,159
1,592,907

$ 416,842
1,414,835

$ 324,877
1,219,887

$256,480
977,253

$222,280
937,715

Long-term debt, including current portion . . . . . . . . . .

475,304

419,813

316,183

161,417

157,782

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . .

$ 779,650

$ 692,729

$ 627,363

$563,703

$526,663

(1)

Includes the acquisition of Merritt Tool Company, Inc., Saygrove Defence and Aerospace Group Limited., The Mexmil
Company, LLC and acquisition of the aviation segment of Kongsberg Automotive Holdings ASA from the date of
acquisition. See Note 3 to the Consolidated Financial Statements.

(2) Fiscal years 2009, 2008 and 2007 include stock-based compensation pre-tax charges of $3.2 million, $2.8 million and

$2.5 million, respectively, related to the adoption of SFAS No. 123R as of April 1, 2006.

(3)

Includes the acquisition of the assets and business of B. & R. Machine & Tool Corp. from the date of acquisition. See
Note 3 to the Consolidated Financial Statements.

(4) During 2008, the Company sold the assets of Triumph Precision, Inc. and also decided to sell Triumph Precision

Castings Co. These businesses have been classified as discontinued operations in 2009 and 2008 and, accordingly, the results
for fiscal years prior to 2008 have also been reclassified to conform to the 2008 presentation. See Note 4 to the
Consolidated Financial Statements.

(5)

Includes the acquisition of the assets and businesses of Excel Manufacturing, Inc., Air Excellence International, Inc., Grand
Prairie Accessory Services, LLC and the acquisition through merger of Allied Aerospace Industries, Inc., from the date of
each respective acquisition. See Note 3 to the Consolidated Financial Statements.

(6) Results include $3.1 million of restructuring costs associated with ceasing the operations of the Company’s Phoenix

Manufacturing Division of the Company’s Triumph Engineered Solutions subsidiary and the divestitures of the Company’s
IGT repair division and the Wisconsin Manufacturing division of the Company’s Triumph Engineered Solutions subsidiary.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(The following discussion should be read in conjunction with the Consolidated Financial

Statements and notes thereto contained elsewhere herein.)

OVERVIEW

We are a major supplier to the aerospace industry and have two operating segments: (i) Triumph

Aerospace Systems Group, whose companies design, engineer, manufacture and sell a wide range of
proprietary and build-to-print components, assemblies and systems for the global aerospace OEM
market; and (ii) Triumph Aftermarket Services Group, whose companies serve aircraft fleets, notably
commercial airlines, the U.S. military and cargo carriers, through the maintenance, repair and overhaul
of aircraft components and accessories manufactured by third parties.

Financial highlights for the fiscal year ended March 31, 2009 include:

(cid:127) Net sales for fiscal 2009 increased 7.8% to $1.2 billion.

(cid:127) Operating income in fiscal 2009 increased 20.3% to $151.9 million.

(cid:127) Net income for fiscal 2009 increased 38.3% to $93.1 million.

(cid:127) Backlog increased 3.6% over the prior year to $1.3 billion.

For the fiscal year ended March 31, 2009, net sales totaled $1.24 billion, a 7.8% increase from

fiscal year 2008 net sales of $1.15 billion. Net income for fiscal year 2009 increased 38.3% to
$93.1 million, or $5.61 per diluted common share, versus $67.3 million, or $3.84 per diluted common
share, for fiscal year 2008. As discussed in further detail below under ‘‘Results of Operations’’, the
increase in net income is attributable to the increased sales, including the contribution from recent
acquisitions and reduced expenses, particularly for litigation and incentive compensation.

Our working capital needs are generally funded through cash flows from operations and
borrowings under our credit arrangements. For the fiscal year ended March 31, 2009, we generated
approximately $135.0 million of cash flows from operating activities, used approximately $185.6 million
in investing activities and generated approximately $52.1 million in financing activities.

We continue to remain focused on growing our core businesses as well as growing through

strategic acquisitions. Our organic growth remained strong in fiscal 2009 through the addition of
products and services, the expansion of our operating capacity and marketing our complete portfolio of
capabilities, while benefiting from the continued strength in the aerospace markets generally. Our core
revenue growth in fiscal 2009 as compared to fiscal 2008, excluding the impact of acquisitions, was
4.5%, which was negatively impacted by the Boeing strike and major program delays (particularly in
Boeing’s 787 and 747-8 programs), partially offset by a favorable settlement of a retroactive pricing
agreement. Our company has an aggressive but selective acquisition approach that adds capabilities and
increases our capacity for strong and consistent internal growth. In March 2009, we acquired Merritt
Tool Company, Inc. (now Triumph Structures—East Texas), Saygrove Defence & Aerospace Group
Limited (now Triumph Actuation & Motion Control Systems—UK), the aviation segment of Kongsberg
Automotive Holdings ASA (now Triumph Controls—U.K and Triumph Controls-Germany) and The
Mexmil Company, LLC (now Triumph Insulation Systems), collectively the ‘‘fiscal 2009 acquisitions.’’ In
February 2008, we acquired the assets and business of B. & R. Machine & Tool Corp. (‘‘B & R’’)
through a newly organized, wholly-owned subsidiary of the Company, Triumph Structures—Long
Island, LLC. The results for the fiscal 2009 acquisitions and Triumph Structures—Long Island, LLC are
included in the Company’s Aerospace Systems Segment.

OUTLOOK

Based upon the assumptions about our market set forth below, and subject to the risks and
uncertainties described elsewhere in this Annual Report on Form 10-K, we expect net sales for the
fiscal year ending March 31, 2010 to be in the range of $1.275 billion to $1.375 billion, and earnings
per share from continuing operations for fiscal 2009 of approximately $5.00 per diluted share. The
fiscal 2010 outlook assumes, among other factors, a full-year effective tax rate of 33%. The 2010
outlook for earnings per share is based on a fully diluted share count of 17.2 million shares.

Our fiscal 2010 outlook is based on the following market assumptions:

(cid:127) We expect the commercial jet aircraft market and the airline industry to remain extremely

competitive. Market liberalization in Europe and Asia has continued to enable low-cost airlines
to gain market share, and traditional airlines continue to improve their competitive position by
lowering their cost structure through merger, bankruptcy and restructuring. Some of the airline
restructurings have led to increased outsourcing opportunities, benefiting our Aftermarket
Services segment.

(cid:127) The financial health of the commercial airline industry has a direct effect on our commercial
aircraft programs. While challenges include volatile fuel prices, customers rescheduling orders
and continuing turmoil in global credit markets, airlines are responding by focusing on
controlling non-fuel related expenses and implementing operational efficiencies. Based upon
currently available market forecasts, we expect aircraft seat miles, a key indicator of airline
health, to decline 2% to 3% as airlines attempt to match capacity with air travel demand.

(cid:127) Deliveries of Boeing and Airbus large commercial aircraft are expected to be higher in calendar
2009 compared to calendar 2008, due to the effect of the Boeing strike in calendar 2008. Boeing
and Airbus reported actual deliveries for calendar 2008 of 858 aircraft. Their deliveries for
calendar 2009 are expected to increase by approximately 12%, to about 960 aircraft. Our outlook
is based on Boeing’s and Airbus’ current projected production rates.

(cid:127) Military sales (OEM and aftermarket) are expected to increase roughly in line with global
military budgets, which are expected to grow in the single digit range for calendar 2009
compared to calendar 2008.

(cid:127) The major trends that shape the current military/defense environment include a growing U.S.

Government defense budget. Although under pressure, the U.S. defense budget remains strong
and focused on transformation. With this continued pressure on the budget, we believe the U.S.
Department of Defense will continue to focus on affordable strategies in particular, programs
currently in production, which would include continued significant investment in rotocraft.

(cid:127) Total regional and business aircraft production is expected to decrease in fiscal 2010 compared

to fiscal 2009, as deliveries of business jets are expected to significantly decrease, along with the
increase in pre-owned business jet inventory. In the regional aircraft market we expect to see
declines impacted by the drop in passenger traffic and the rescheduling of deliveries.

(cid:127) We expect a weakened air cargo market, which is a key market segment for our Aftermarket

Services Group given our product penetration with these carriers.

RESULTS OF OPERATIONS

The following includes a discussion of our consolidated and business segment results of operations.

The Company’s diverse structure and customer base do not provide for precise comparisons of the
impact of price and volume changes to our results. However, we have disclosed the significant variances
between the respective periods.

Fiscal year ended March 31, 2009 compared to fiscal year ended March 31, 2008

Year Ended March 31,

2009

2008

(in thousands)

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,240,378

$1,151,090

Segment operating income . . . . . . . . . . . . . . . . . . . . . . . .
Corporate general and administrative expenses . . . . . . . . .

Total operating income . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense and other . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss on early extinguishment of debt . . . . . . . . . . . .
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income from continuing operations . . . . . . . . . . . . . . . .
Loss from discontinued operations, net . . . . . . . . . . . . . . .

178,882
(26,968)

151,914
11,096
(2,580)
45,586

97,812
(4,745)

148,292
(21,967)

126,325
13,422
—
37,161

75,742
(8,468)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

93,067

67,274

Net sales increased by $89.3 million, or 7.8%, to $1.24 billion for the fiscal year ended March 31,
2009 from $1.15 billion for the fiscal year ended March 31, 2008. The fiscal 2009 acquisitions and the
fiscal 2008 acquisition of B. & R. Machine & Tool Corp. (now Triumph Structures—Long Island)
together contributed $37.0 million. Excluding the effects of this acquisition, organic sales growth was
$52.3 million, or 4.5%, which was negatively impacted by the Boeing strike and major program delays
(particularly in the 787 and 747-8 programs), partially offset by a favorable settlement of a retroactive
pricing agreement.

The Aerospace Systems segment benefited primarily from increased sales to our OEM customers

driven by increased military aircraft build rates, while the increase in sales for our Aftermarket Services
segment was the result of increased demand for our services due to growth in global air traffic.

Cost of sales increased by $55.4 million, or 6.7%, to $877.7 million for the fiscal year ended
March 31, 2009 from $822.3 million for the fiscal year ended March 31, 2008. This increase includes
the acquisitions noted above, which contributed $17.9 million. Excluding the effects of these
acquisitions, gross margin was 28.6% for the fiscal year ended March 31, 2009, compared with 28.4%
for the fiscal year ended March 31, 2008. Despite having consistent consolidated gross margin, the
gross margin for our Aerospace Systems segment was favorably impacted by contribution from the
acquisition of B. & R. Machine & Tool Company and the favorable settlement of a retroactive pricing
agreement, whereas the gross margin for our Aftermarket Services segment was negatively impacted by
charges due to contract terminations ($1.3 million) and changes in estimate under power-by-the hour
contracts ($1.1 million) as well as losses at our Phoenix APU facility due to cost overruns and excess
overhead ($4.8 million) and higher than expected warranty expenses ($0.6 million).

Segment operating income increased by $30.5 million, or 20.6%, to $178.9 million for the fiscal
year ended March 31, 2009 from $148.3 million for the fiscal year ended March 31, 2008. Operating
income growth was a direct result of margins attained on increased sales as described above, the
contribution of $13.8 million from the above-mentioned acquisitions, and decreases in litigation costs
($3.7 million) and incentive compensation ($1.3 million), partially offset by increases in payroll
($2.4 million) and depreciation and amortization expenses ($1.1 million) associated with our
acquisitions.

Corporate expenses increased by $5.0 million, or 22.8%, to $27.0 million for the fiscal year ended

March 31, 2009 from $22.0 million for the fiscal year ended March 31, 2008, primarily due to increased
healthcare ($3.0 million), stock compensation costs ($0.6 million) and the write-off of acquisition costs

on a potential acquisition that was not consummated ($0.5 million), partially offset by decreases in
litigation costs ($1.8 million).

Interest expense and other decreased by $2.3 million, or 17.3%, to $11.1 million for the fiscal year

ended March 31, 2009 compared to $13.4 million for the prior year. During fiscal 2009, the Company
entered into certain foreign currency derivative instruments that did not meet hedge accounting criteria
and primarily were intended to protect against exposure related to fiscal 2009 acquisitions. These
instruments resulted in a gain of $1.4 million in fiscal 2009, which is included in interest expense and
other. In addition to this gain, the decrease in interest expense was impacted by declining interest rates.
Also during fiscal 2009, the Company paid $15.4 million to purchase $18.0 million of principal on the
convertible senior subordinated notes, resulting in a gain on early extinguishment of $2.6 million.

The effective tax rate was 31.8% for the fiscal year ended March 31, 2009 and 32.9% for the fiscal

year ended March 31, 2008. The decrease in the tax rate was primarily due to the retroactive
reinstatement of the research and experimentation tax credit back to January 1, 2008.

Loss from discontinued operations before income taxes was $7.3 million for the fiscal year ended

March 31, 2009, compared with a loss from discontinued operations before income taxes of
$13.0 million for the fiscal year ended March 31, 2008, which included an impairment charge of
$4.0 million. The income tax benefit for discontinued operations was $2.6 million for the fiscal year
ended March 31, 2009 compared to a benefit of $4.6 million for the prior year.

Fiscal year ended March 31, 2008 compared to fiscal year ended March 31, 2007

Year Ended March 31,

2008

2007

(in thousands)

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,151,090

$937,327

Segment operating income . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate general and administrative expenses . . . . . . . . . . .

148,292
(21,967)

113,251
(19,352)

Total operating income . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense and other . . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss on early extinguishment of debt . . . . . . . . . . . . .
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income from continuing operations . . . . . . . . . . . . . . . . .
Loss from discontinued operations, net . . . . . . . . . . . . . . . .

126,325
13,422
—
37,161

75,742
(8,468)

93,899
11,706
5,088
26,129

50,976
(3,905)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67,274

$ 47,071

Net sales increased by $213.8 million, or 22.8%, to $1.15 billion for the fiscal year ended

March 31, 2008 from $973.3 million for the fiscal year ended March 31, 2007. The acquisitions of the
assets and businesses of Allied Aerospace Industries, Inc. (now Triumph Aerospace Systems—Newport
News) and Grand Prairie Accessory Services, LLC (now Triumph Accessory Services—Grand Prairie),
which were completed during the fiscal year ended March 31, 2007, and the acquisition of B. & R.
Machine & Tool Corp. (now Triumph Structures—Long Island) together contributed $39.3 million.
After considering the effects of these acquisitions, organic sales growth of $174.5 million, or 19.0%,
accounted for the remaining increase. Organic sales growth was due to increased sales to our OEM
customers of $150.6 million driven by increased aircraft build rates within our Aerospace Systems
segment, while the increase in sales for our Aftermarket Services segment of $23.9 million was the
result of increased demand for our services, as a result of growth in global air traffic and market share
gain.

Cost of sales increased by $150.5 million, or 22.4%, to $822.3 million for the fiscal year ended

March 31, 2008 from $671.8 million for the fiscal year ended March 31, 2007. This increase includes
the acquisitions noted above, which contributed $28.7 million; offset by an insurance reimbursement
($2.3 million) related to product liability claims. Excluding the effects of these acquisitions and
insurance reimbursement, gross margin was 28.4% for the fiscal year ended March 31, 2008, compared
with 28.3% for the fiscal year ended March 31, 2007.

Segment operating income increased by $35.0 million, or 30.9%, to $148.3 million for the fiscal
year ended March 31, 2008 from $113.3 million for the fiscal year ended March 31, 2007. Operating
income growth was a direct result of the margins attained on increased sales volume as described above
approximating $52.5 million, and the contribution of $2.3 million from the above mentioned
acquisitions, partially offset by incurred increases in litigation costs ($3.7 million) due to developments
discussed under ‘‘Legal Proceedings;’’ increases in payroll ($5.3 million), incentive compensation
($2.3 million), and healthcare ($1.0 million) to match our operating needs due to increased sales levels;
and increases in depreciation and amortization expenses ($7.5 million) due to increased capital
additions and intangibles acquired in business combinations.

Corporate expenses increased by $2.6 million, or 13.5%, to $22.0 million for the fiscal year ended

March 31, 2008 from $19.4 million for the fiscal year ended March 31, 2007, primarily due to increased
litigation costs ($1.7 million) due to developments addressed under ‘‘Legal Proceedings’’ and increased
workers compensation ($1.0 million) and incentive compensation costs ($1.0 million) to match our
operating needs due to increased sales levels; partially offset by an insurance reimbursement of
$2.3 million related to product liability claims.

Interest expense and other increased by $1.7 million, or 14.7%, to $13.4 million for the fiscal year

ended March 31, 2008 compared to $11.7 million for the prior year period. This increase was due to
higher average borrowings outstanding and amortization of debt issuance costs, partially offset by lower
interest on our convertible notes issued in September 2006 as compared to the previously outstanding
Class A Senior Notes and Class B Senior Notes (collectively, the ‘‘Senior Notes’’).

During the third quarter of fiscal 2007 we recorded a charge for early extinguishment of debt
totaling $5.1 million related to the prepayment of the Senior Notes on October 4, 2006, which included
a ‘‘make-whole’’ premium of approximately $4.4 million and the write-off of unamortized debt issuance
costs related to the Senior Notes of $0.7 million.

The effective tax rate was 32.9% for the fiscal year ended March 31, 2008 and 33.9% for the fiscal
year ended March 31, 2007. The decrease in the tax rate was primarily due to final return to provision
adjustments. Additionally, both rates vary from the Federal statutory tax rate of 35% primarily due to
benefits realized from the research and development tax credit and the domestic production activities
deduction.

Loss from discontinued operations before income taxes was $13.0 million for the fiscal year ended

March 31, 2008, which included an impairment charge of $4.0 million, compared with a loss from
discontinued operations before income taxes of $6.0 million for the fiscal year ended March 31, 2007.
The income tax benefit for discontinued operations was $4.6 million for the fiscal year ended March 31,
2008 compared to a benefit of $2.1 million for the prior year.

Business Segment Performance

We are a major supplier to the aerospace industry and have two operating segments: (i) Triumph

Aerospace Systems Group and (ii) Triumph Aftermarket Services Group. Our Aerospace Systems
segment includes 39 operating locations, and the Aftermarket Services segment includes 16 operating
locations at March 31, 2009. The results of operations between our operating segments vary due to
differences in competitors, customers, extent of proprietary deliverables and performance. For example,

our Aerospace Systems segment generally includes proprietary products and/or arrangements where we
become the primary source or one of a few primary sources to our customers, where our unique
manufacturing capabilities command a higher margin. Also, OEMs are increasingly focusing on
assembly activities while outsourcing more manufacturing and repair to third parties, and as a result,
are less of a competitive force than in previous years. In contrast, our Aftermarket Services segment
provides maintenance, repair and overhaul (‘‘MRO’’) services on components and accessories
manufactured by third parties, with more diverse competition, including airlines, OEMs and other
third-party service providers. In addition, variability in the timing and extent of customer requests
performed in the Aftermarket Services segment can provide for greater volatility in revenue and
earnings than that experienced in the Aerospace Systems segment.

The Aerospace Systems segment consists of the Company’s operations which manufacture products

primarily for the aerospace OEM market. The Aerospace Systems segment’s operations design and
engineer mechanical and electromechanical controls, such as hydraulic systems and components, main
engine gearbox assemblies, accumulators and mechanical control cables. The Aerospace Systems
segment’s revenues are also derived from stretch forming, die forming, milling, bonding, machining,
welding and assembly and fabrication of various structural components used in aircraft wings, fuselages
and other significant assemblies. Further, the segment’s operations also design and manufacture
composite assemblies for floor panels, environmental control system ducts and non-structural cockpit
components. These products are sold to various aerospace OEMs on a global basis.

The Aftermarket Services segment consists of the Company’s operations that provide maintenance,

repair and overhaul services to both commercial and military markets on components and accessories
manufactured by third parties. Maintenance, repair and overhaul revenues are derived from services on
auxiliary power units, airframe and engine accessories, including constant-speed drives, cabin
compressors, starters and generators, and pneumatic drive units. In addition, the Aftermarket Services
segment’s operations repair and overhaul thrust reversers, nacelle components and flight control
surfaces. The Aftermarket Services segment’s operations also perform repair and overhaul services and
supply spare parts for various types of cockpit instruments and gauges for a broad range of commercial
airlines on a worldwide basis.

We currently generate a majority of our revenue from clients in the commercial aerospace
industry, the military, and the regional airline industry. Our growth and financial results are largely
dependent on continued demand for our products and services from clients in these industries. If any
of these industries experiences a downturn, our clients in these sectors may conduct less business with
us. The following table summarizes our net sales by end market by business segment. The loss of one

or more of our major customers or an economic downturn in the commercial airline or the military and
defense markets could have a material adverse effect on our business.

Aerospace Systems
Commercial aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Military . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Jets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-aviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,

2009

2008

2007

28.3% 30.7% 32.4%
33.0% 29.5% 28.8%
5.3% 4.2% 4.4%
7.9% 8.1% 7.8%
5.1% 6.2% 5.9%

Total Aerospace Systems net sales . . . . . . . . . . . . . . . . . . .

79.6% 78.7% 79.3%

Aftermarket Systems
Commercial aerospace . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Military . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Jets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-aviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14.4% 13.7% 12.7%
3.3% 3.3% 3.8%
0.6% 0.9% 0.9%
0.9% 0.7% 1.5%
1.2% 2.7% 1.8%

Total Aftermarket Services net sales . . . . . . . . . . . . . . . . .

20.4% 21.3% 20.7%

Total Consolidated net sales . . . . . . . . . . . . . . . . . . . . . . .

100.0% 100.0% 100.0%

The decline in our percentage of net sales to the Commercial aerospace end market was impacted

by the effect of the Boeing strike and major program delays (particularly in the 787 and 747-8
programs) in fiscal 2009, as well as continued growth in the Military end market.

Business Segment Performance—Fiscal year ended March 31, 2009 compared to fiscal year ended

March 31, 2008

Year Ended March 31,

2009

2008

%
Change

% of Total Sales

2009

2008

(in thousands)

NET SALES
Aerospace Systems . . . . . . . . . . . . . . . . . . . . . . .
Aftermarket Services . . . . . . . . . . . . . . . . . . . . . .
Elimination of inter-segment sales . . . . . . . . . . . .

$ 988,359
254,638
(2,619)

$ 907,376
246,609
(2,895)

8.9% 79.7% 78.8%
3.3% 20.5% 21.4%
(9.5)% (.2))% (.2)%

Total net sales . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,240,378

$1,151,090

7.8% 100.0% 100.0%

Year Ended March 31,

2009

2008

(in thousands)

%
Change

% of Segment
Sales

2009

2008

SEGMENT OPERATING INCOME
Aerospace Systems
. . . . . . . . . . . . . . . . . . . . . . . . . .
Aftermarket Services . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$168,006
10,876
(26,968)

$124,812
23,480
(21,967)

34.6% 17.0% 13.8%
(53.7)% 4.3% 9.5%
22.8% n/a

n/a

Total segment operating income . . . . . . . . . . . . . . . . .

$151,914

$126,325

20.3% 12.2% 11.0%

Aerospace Systems: The Aerospace Systems segment net sales increased by $81.0 million, or
8.9%, to $988.4 million for the fiscal year ended March 31, 2009 from $907.4 million for the fiscal year

ended March 31, 2008. The increase was primarily due to organic sales growth to our OEM customers
of $44.0 million driven by increased aircraft build rates and by a favorable settlement of a retroactive
pricing agreement , negatively impacted by the Boeing strike and major program delays (particularly in
the 787 and 747-8 programs). The net sales contributed from the fiscal 2009 acquisitions and the fiscal
2008 acquisition of B. & R. Machine & Tool Corp. (now Triumph Structures—Long Island) of
$37.0 million accounted for the remaining increase.

Aerospace Systems segment operating income increased by $43.2 million, or 34.6%, to

$168.0 million for the fiscal year ended March 31, 2009 from $124.8 million for the fiscal year ended
March 31, 2008. Operating income increased primarily due to margins attained on increased sales,
including the contribution of $13.8 million from the above-mentioned acquisitions, as well as decreases
in litigation expenses ($3.8 million) and incentive compensation ($1.1 million), partially offset by
increases in payroll ($2.9 million) and healthcare costs ($2.0 million).

Aerospace Systems segment operating income as a percentage of segment sales increased to 17.0%

for the fiscal year ended March 31, 2009 as compared with 13.8% for the fiscal year ended March 31,
2008, due to the contribution of the acquisition of B. & R. Machine & Tool Corp, the reduction in
expenses discussed above, and the favorable settlement of a retroactive pricing agreement.

Aftermarket Services: The Aftermarket Services segment net sales increased by $8.0 million, or

3.3%, to $254.6 million for the fiscal year ended March 31, 2009 from $246.6 million for the fiscal year
ended March 31, 2008. This increase was due to increased market penetration in the repair and
overhaul of auxiliary power units and thrust reversers primarily at our Thailand repair and maintenance
facility. These increases were offset by decreased fleet utilization by customers under power-by-the hour
(‘‘PBH’’) contracts impacting revenue by approximately $3.1 million.

Aftermarket Services segment operating income decreased by $12.6 million, or 53.7%, to
$10.9 million for the fiscal year ended March 31, 2009 from $23.5 million for the fiscal year ended
March 31, 2008. Operating income decreased primarily due to losses at the Phoenix APU operations
due to cost overruns and excess overhead ($4.8 million), higher than expected warranty expenses
($0.6 million), lower than expected PBH revenue ($3.1 million), PBH contract charges ($1.1 million)
and additional charges for the early termination of a maintenance contract ($1.3 million), partially
offset by higher margins attained on increased sales as described above, as well as decreases in payroll
($0.8 million) and incentive compensation expenses ($1.1 million).

Aftermarket Services segment operating income as a percentage of segment sales decreased to

4.3% for the fiscal year ended March 31, 2009 as compared with 9.5% for the fiscal year ended
March 31, 2008, due to the $5.5 million in charges due to contract terminations and changes in
estimate under PBH contracts as well as the production and operation losses at the Phoenix APU
operations.

Business Segment Performance—Fiscal year ended March 31, 2008 compared to fiscal year ended

March 31, 2007

Year Ended March 31,

2008

2007

%
Change

% of Total Sales

2008

2007

(in thousands)

NET SALES
Aerospace Systems . . . . . . . . . . . . . . . . . . . . . . . .
Aftermarket Services . . . . . . . . . . . . . . . . . . . . . . .
Elimination of inter-segment sales . . . . . . . . . . . . .

$ 907,376
246,609
(2,895)

$743,742
196,526
(2,941)

22.0% 78.8% 79.3%
25.5% 21.4% 21.0%
(1.6)% (.2)% (.3)%

Total net sales

. . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,151,090

$937,327

22.8% 100.0% 100.0%

Year Ended March 31,

2008

2007

(in thousands)

%
Change

% of Segment
Sales

2008

2007

SEGMENT OPERATING INCOME
Aerospace Systems . . . . . . . . . . . . . . . . . . . . . . . . .
Aftermarket Services . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$124,812
23,480
(21,967)

$101,867
11,384
(19,352)

22.5% 13.8% 13.7%
106.3% 9.5% 5.8%
(13.5)% n/a

n/a

Total segment operating income . . . . . . . . . . . . . . . .

$126,325

$ 93,899

34.5% 11.0% 10.0%

Aerospace Systems: The Aerospace Systems segment net sales increased by $163.6 million, or
22.0%, to $907.4 million for the fiscal year ended March 31, 2008 from $743.7 million for the fiscal
year ended March 31, 2007. The increase was primarily due to organic sales growth to our OEM
customers of $150.5 million driven by increased aircraft build rates and the net sales contributed from
the acquisition of the assets and business of Allied Aerospace Industries, Inc. (now Triumph Aerospace
Systems—Newport News).

Aerospace Systems segment operating income increased by $22.9 million, or 22.5%, to

$124.8 million for the fiscal year ended March 31, 2008 from $101.9 million for the fiscal year ended
March 31, 2007. Operating income increased primarily due to margins attained on increased sales,
partially offset by an increase of $3.7 million in litigation expenses, net of insurance reimbursements,
and additional increases in payroll, incentive compensation, and healthcare costs.

Aftermarket Services: The Aftermarket Services segment net sales increased by $50.1 million, or

25.5%, to $246.6 million for the fiscal year ended March 31, 2008 from $196.5 million for the fiscal
year ended March 31, 2007. This increase was due to the sales increase associated with the acquisition
of Triumph Accessory Services—Grand Prairie, Inc., and an increase in same store sales of
$23.9 million due to new customers and products, growth in global commercial air traffic and U.S.
military maintenance requirements resulting in increased demand for repair and overhaul of auxiliary
power units and the brokering of similar units.

Aftermarket Services segment operating income increased by $12.1 million, or 106.3%, to
$23.5 million for the fiscal year ended March 31, 2008 from $11.4 million for the fiscal year ended
March 31, 2007. Operating income increased primarily due to margins attained on increased sales
volume and the contribution from the acquisition of Triumph Accessory Services—Grand Prairie, Inc.
partially offset by increases in incentive compensation, write-offs of bad debt and depreciation and
amortization expenses.

Aftermarket Services segment operating income as a percentage of segment sales increased to

9.5% for the fiscal year ended March 31, 2008 as compared with 5.8% for the fiscal year ended
March 31, 2007, due to the full year contributions from the acquisition of Triumph Accessory
Services—Grand Prairie, Inc. and the expansion of our operations in our Thailand repair and
maintenance facility. In addition, we experienced improved operating margins on our APU and nacelle
components businesses due to increased efficiencies as a result of higher sales volumes.

Liquidity and Capital Resources

Our working capital needs are generally funded through cash flow from operations and borrowings

under our credit arrangements. During the year ended March 31, 2009, we generated approximately
$135.0 million of cash flow from operating activities, used approximately $185.6 million in investing
activities and generated approximately $52.1 million in financing activities. During the fiscal year ended
March 31, 2009, our increased cash flow from operations was attributable to higher net income and an
improved performance on working capital due to increased cash collections efforts, offset by timing of
cash disbursements and utilization of inventory.

On July 10, 2008, we amended the existing amended and restated credit agreement (the ‘‘Credit

Facility’’) with our lenders primarily to allow for a receivable securitization facility of up to
$125.0 million and amend certain other terms and covenants. Coincident with the amendment, we
exercised a provision of the Credit Facility to increase the amount available under the Credit Facility to
$370.0 million from $350.0 million. As of March 31, 2009, $236.7 million was available under our Credit
Facility. On March 31, 2009, an aggregate amount of approximately $127.7 million was outstanding
under the Credit Facility, which was accruing interest at LIBOR plus applicable basis points totaling
2.7% per annum. Amounts repaid under the Credit Facility may be reborrowed.

In August 2008, we entered into a receivable securitization facility (the ‘‘Securitization Facility’’).

Under the Securitization Facility, the Company sells on a revolving basis certain accounts receivable to
Triumph Receivables, LLC, a wholly-owned special purpose entity, which in turn sells a percentage
ownership interest in the receivables to commercial paper conduits sponsored by financial institutions.
The Company is the servicer of the accounts receivable under the Securitization Facility. As of
March 31, 2009, the maximum amount available under the Securitization Facility was $125.0 million.
The Securitization Facility is due to expire in August 2009 and is subject to annual renewal through
August 2013. Interest rates are based on prevailing market rates for short-term commercial paper plus
a program fee and a commitment fee. The program fee is 35 basis points on the amount outstanding
under the Securitization Facility. Additionally, the commitment fee is 30 basis points on 102% of the
maximum amount available under the Securitization Facility. At March 31, 2009, there was
$75.0 million outstanding under the Securitization Facility included in the current portion of long-term
debt on the consolidated balance sheet. We use this facility because it offers an attractive interest rate
relative to other financing sources. The Company securitizes its accounts receivable, which are generally
non-interest bearing, in transactions that are accounted for as borrowings under SFAS No. 140,
‘‘Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.’’ The
agreement governing the Securitization Facility contains restrictions and covenants which include
limitations on the making of certain restricted payments, creation of certain liens, and certain corporate
acts such as mergers, consolidations and the sale of substantially all assets.

In March 2009, we acquired Merritt Tool Company, Inc. (now Triumph Structures—East Texas),

Saygrove Defence & Aerospace Group Limited (now Triumph Actuation & Motion Control Systems—
UK), the aviation segment of Kongsberg Automotive Holdings ASA (now Triumph Controls—UK and
Triumph Controls—Germany) and The Mexmil Company, LLC (now Triumph Insulation Systems),
collectively the ‘‘fiscal 2009 acquisitions’’. No in-process research and development was attributed to the
fiscal 2009 acquisitions. The total cash paid at closing for the fiscal 2009 acquisitions of $143.6 million
was funded by borrowings under our Credit Facility. The fiscal 2009 acquisitions further provide for
deferred payments of $3.5 million, of which $2.1 million and $1.4 million are payable in March 2010
and September 2010, respectively. The fiscal 2009 acquisitions also provide for contingent payments of
$24.9 million, certain of which are contingent upon the achievement of specified earnings levels during
the earnout period and another $10.0 million that is contingent upon entering into a specific customer
contract. The maximum earnout amounts payable in respect of fiscal 2010, 2011, 2012 and 2013 are
$2.3 million, $4.6 million, $5.4 million and $2.6 million, respectively. The contingent amounts have not
been recorded as the contingencies have not been resolved and the consideration has not been paid.

Also in March 2009, we entered into a 7-year Master Lease Agreement (the ‘‘Leasing Facility’’)
creating a capital lease of certain existing property and equipment, resulting in net proceeds of $58,546
after deducting debt issuance costs of approximately $188. The net proceeds from the Leasing Facility
were used to repay a portion of the outstanding indebtedness under our Credit Facility. The debt
issuance costs have been recorded as other assets in the accompanying consolidated balance sheets and
are being amortized over the term of the Leasing Facility. The Leasing Facility bears interest at a
weighted average fixed rate of 6.1% per annum.

Cash provided by operations for the fiscal year ended March 31, 2008 was $45.7 million, compared

to cash provided by operations of $41.3 million for the fiscal year ended March 31, 2007. During the
fiscal year ended March 31, 2008, our increased cash flow from operations was attributable to higher
net income offset by a decline in performance on working capital, due to timing of cash collections and
utilization of inventory offset by timing of cash disbursements.

In February 2008, we acquired the assets and business of B. & R. Machine & Tool Corp. (now

Triumph Structures—Long Island), located in Westbury, New York. The total cash paid at closing for
the acquisition of $67.0 million was funded by borrowings under our Credit Facility. The purchase
agreement provides for an earnout note for $13.0 million. Payments under the earnout note are
contingent upon the achievement of certain earnings levels during the earnout period. The maximum
amounts payable in respect of fiscal 2009, 2010 and 2011, are $3.5 million, $4.5 million and
$5.0 million, respectively.

In April 2006, we acquired the assets and business of Excel Manufacturing, Inc. (now Triumph

Structures—Wichita), located in Wichita, Kansas. In April 2006, we also acquired the assets and
business of Air Excellence International, Inc. and its affiliates (now Triumph Interiors) which is
headquartered in Pittsburgh, Pennsylvania, and operates two other strategically located facilities in
Dallas, Texas and Shannon, Ireland (now closed). In November 2006, we acquired Allied Aerospace
Industries, Inc. (now Triumph Aerospace Systems—Newport News) located in Newport News, Virginia.
In January 2007, we acquired Grand Prairie Accessory Services, LLC (now Triumph Accessory
Services—Grand Prairie), located in Grand Prairie, Texas. The total cash paid at closing for these
acquisitions of approximately $136.8 million was funded by borrowings under our Credit Facility.

During February 2008, we exercised existing authority to make stock repurchases and repurchased

220,000 shares of our outstanding shares under the program for an aggregate consideration of
$12.3 million, funded by borrowings under our Credit Facility. In February 2008, the Company’s Board
of Directors then authorized an increase in our existing stock repurchase program by up to an
additional 500,000 shares of our common stock. As a result, as of May 15, 2009, we remain able to
purchase an additional 500,800 shares. Repurchases may be made from time to time in open market
transactions, block purchases, privately negotiated transactions or otherwise at prevailing prices. No
time limit has been set for completion of the program.

On September 18, 2006, we issued $201.3 million in convertible senior subordinated notes (the
‘‘Notes’’). The Notes are direct, unsecured, senior subordinated obligations of the Company, and rank
(i) junior in right of payment to all of our existing and future senior indebtedness, (ii) equal in right of
payment with any other future senior subordinated indebtedness, and (iii) senior in right of payment to
all subordinated indebtedness.

The Company received net proceeds from the sale of the Notes of approximately $195.0 million

after deducting offering expenses of approximately $6.3 million. The use of the net proceeds from the
sale was for prepayment of our outstanding Senior Notes, including a ‘‘make whole’’ premium, fees and
expenses in connection with the prepayment, and to repay a portion of the outstanding indebtedness
under our Credit Facility. Approximately $6.3 million in debt issuance costs have been recorded as
other assets in the accompanying consolidated balance sheets. Debt issuance costs are being amortized
over a period of five years.

The Notes bear interest at a fixed rate of 2.625% per annum, payable in cash semi-annually in
arrears on each April 1 and October 1 beginning April 1, 2007. During the period commencing on
October 6, 2011 and ending on, but excluding, April 1, 2012 and each six-month period from October 1
to March 31 or from April 1 to September 30 thereafter, the Company will pay contingent interest
during the applicable interest period if the average trading price of a Note for the five consecutive
trading days ending on the third trading day immediately preceding the first day of the relevant
six-month period equals or exceeds 120% of the principal amount of the Notes. The contingent interest

payable per Note in respect of any six-month period will equal 0.25% per annum calculated on the
average trading price of a Note for the relevant five trading day period. This contingent interest feature
represents an embedded derivative. Since it is in the control of the Company to call the Notes at any
time after October 6, 2011, the value of the derivative was determined to be de minimis. Accordingly,
no value has been assigned at issuance or at March 31, 2009.

The Notes mature on October 1, 2026 unless earlier redeemed, repurchased or converted. The
Company may redeem the Notes for cash, either in whole or in part, anytime on or after October 6,
2011 at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus
accrued and unpaid interest, including contingent interest and additional amounts, if any, up to but not
including the date of redemption. In addition, holders of the Notes will have the right to require the
Company to repurchase for cash all or a portion of their Notes on October 1, 2011, 2016 and 2021, at
a repurchase price equal to 100% of the principal amount of the Notes to be repurchased plus accrued
and unpaid interest, including contingent interest and additional amounts, if any, up to, but not
including, the date of repurchase. The Notes are convertible into the Company’s common stock at a
rate equal to 18.3655 shares per $1,000 principal amount of the Notes (equal to an initial conversion
price of approximately $54.45 per share), subject to adjustment as described in the Indenture. Upon
conversion, the Company will deliver to the holder surrendering the Notes for conversion, for each
$1,000 principal amount of Notes, an amount consisting of cash equal to the lesser of $1,000 and the
Company’s total conversion obligation and, to the extent that the Company’s total conversion obligation
exceeds $1,000, at the Company’s election, cash or shares of the Company’s common stock in respect
of the remainder.

The Notes are eligible for conversion upon meeting certain conditions as provided in the indenture

agreement. For the periods from October 1, 2007 through December 31, 2007 and January 1, 2008
through March 31, 2008, the Notes were eligible for conversion; however, during this period, none of
the Notes were converted.

To be included in the calculation of diluted earnings per share, the average price of the Company’s

common stock for the fiscal year must exceed the conversion price per share of $54.45. The average
price of the Company’s stock for the fiscal year ended March 31, 2009 was $46.49, therefore, no
additional shares were included in the diluted earnings per share calculation. The average price of the
Company’s stock for the fiscal year ended March 31, 2008 was $68.95. Accordingly, 777,059 additional
shares were included in the diluted earnings per share calculation. No additional shares were included
in the diluted earnings per share calculation for the fiscal year ended March 31, 2007 since the average
price of the Company’s stock did not exceed the conversion price.

If the Company undergoes a fundamental change, holders of the Notes will have the right, subject
to certain conditions, to require the Company to repurchase for cash all or a portion of their Notes at
a repurchase price equal to 100% of the principal amount of the Notes to be repurchased plus accrued
and unpaid interest, including contingent interest and additional amounts, if any. The carrying amount
of convertible senior subordinated notes approximates fair value.

During fiscal 2009, we paid $15.4 million to purchase $18.0 million of principal on the convertible

senior subordinated notes, resulting in a gain on early extinguishment of $2.6 million.

On October 4, 2006, the Company prepaid all of its outstanding Senior Notes and, accordingly, the

rights of the holders of the Class A Senior Notes and Class B Senior Notes (collectively, the ‘‘Senior
Notes’’) under the Note Purchase Agreement, dated November 21, 2002, between the Company and
such holders, as amended, ceased. The Senior Notes were prepaid with the proceeds from the
Company’s sale of the Notes as discussed above. Immediately prior to prepayment, $68.4 million
aggregate principal amount of Class A Senior Notes, which carried a fixed rate of interest of 6.06%,
were outstanding, and $56.0 million aggregate amount of Class B Senior Notes, which carried a fixed
rate of interest of 5.59%, were outstanding. If the Company had not prepaid the outstanding Senior

Notes, they would have matured on December 2, 2012, subject to a requirement under the Note
Purchase Agreement that the Company annually prepay $8.0 million of the outstanding Class B Senior
Notes starting on December 2, 2006. The Senior Notes were senior unsecured obligations of the
Company and ranked junior in right of payment to the rights of the Company’s secured creditors to the
extent of their security in the Company’s assets, equal in right of payment to the rights of creditors
under the Company’s other existing and future unsecured unsubordinated obligations, senior in right of
payment to the rights of creditors under obligations expressly subordinated to the Senior Notes, and
effectively subordinated to secured and unsecured creditors of the Company’s subsidiaries. The
prepayment was made upon proper notice to the holders of the Senior Notes at a price equal to 100%
of the principal amount of the outstanding Senior Notes being prepaid, plus accrued and unpaid
interest of approximately $2.5 million, plus a ‘‘make whole’’ premium of approximately $4.4 million
based on the value of the remaining scheduled interest payments on the Senior Notes being prepaid.
The Company expensed the ‘‘make whole’’ premium of $4.4 million as well as unamortized debt
issuance costs related to the Senior Notes of $0.7 million in the third quarter of fiscal 2007.

The indentures under the Company’s debt agreements and the Credit Facility contain restrictions

and covenants which include limitations on the Company’s ability to incur additional indebtedness,
issue stock options or warrants, make certain restricted payments and acquisitions, create liens, enter
into transactions with affiliates, sell substantial portions of its assets and pay cash dividends. Additional
covenants require compliance with financial tests, including leverage and interest coverage ratio.

At March 31, 2009, there were $127.7 million in borrowings and $5.6 million in letters of credit
outstanding under the Credit Facility. At March 31, 2008, there were $193.8 million in borrowings and
$5.9 million in letters of credit outstanding under the Credit Facility. The level of unused borrowing
capacity under the Company’s revolving Credit Facility varies from time to time depending in part upon
its compliance with financial and other covenants set forth in the related agreement. The Credit Facility
contains certain affirmative and negative covenants including limitations on specified levels of
indebtedness to earnings before interest, taxes, depreciation and amortization, and interest coverage
requirements, and includes limitations on, among other things, liens, mergers, consolidations, sales of
assets, and incurrence of debt. The Company is currently in compliance with all such covenants. As of
March 31, 2009, the Company had borrowing capacity under the Credit Facility of $236.7 million, after
reductions for borrowings and letters of credit outstanding.

Effective April 2007, the Company entered into a settlement agreement with a customer relating

to a long-term supply agreement (‘‘LTSA’’). The LTSA is related to the Company’s acquisition of Rolls-
Royce Gear Systems, Inc., in fiscal 2004. The Company has been producing the component parts for
this LTSA at a loss for approximately two years which has been reserved for through a loss contract
reserve. The agreement provides for the parties to establish a transition plan that provides for the
customer to re-source the component parts from other suppliers, essentially terminating the Company’s
requirement to provide future deliveries of these component parts. The agreement established a date of
no later than December 31, 2008 for completion of the re-sourcing effort. Additionally, the Company
was required to make a total of four payments of $0.5 million upon successful transition of the
component parts by the customer to other vendors. A payment of $0.5 million was made in October
2007. The Company recorded the estimated impact of this settlement in its March 31, 2007 balance
sheet, which did not result in a significant adjustment to the recorded loss reserve. All contract terms
have been fulfilled as of March 31, 2009. As of March 31, 2008 and March 31, 2009, the recorded loss
reserve was $2.9 million and zero, respectively.

Capital expenditures were approximately $45.4 million for the fiscal year ended March 31, 2009

primarily for manufacturing machinery and equipment. We funded these expenditures through
borrowings under our Credit Facility. We expect capital expenditures to be in the range of $45.0 to
$50.0 million for our fiscal year ending March 31, 2010. The expenditures are expected to be used
mainly to expand capacity or replace old equipment at several facilities. During the same period, we

anticipate approximately $7.5 million of start up costs related to the Mexican facility which is in
addition to our investment in capital and infrastructure.

Our expected future cash flows for the next five years for long term debt, leases and other

obligations are as follows:

Contractual Obligations

Payments Due by Period

Total

Less than
1 year

1-3 years

4-5 years

Debt principal(1) . . . . . . . . . . . . . . . . . . . . . . . .
Debt-interest(2) . . . . . . . . . . . . . . . . . . . . . . . . .
Operating leases . . . . . . . . . . . . . . . . . . . . . . . .
Contingent payments(3) . . . . . . . . . . . . . . . . . . .
Purchase obligations . . . . . . . . . . . . . . . . . . . . .

$475,304
38,118
61,423
24,975
315,458

$ 89,085
11,354
12,630
10,000
261,924

(in thousands)
$339,819
19,364
20,556
6,920
51,395

$17,888
4,147
12,007
8,055
2,094

After 5
Years

$28,512
3,253
16,230
—
45

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$915,278

$384,993

$438,054

$44,191

$48,040

(1) Included in the Company’s balance sheet at March 31, 2009.

(2) Includes fixed-rate interest only.

(3) Includes contingent payments in connection with the fiscal 2009 acquisitions.

The above table excludes unrecognized tax benefits of $3.2 million as of March 31, 2009 since we

cannot predict with reasonable certainty the timing of cash settlements with the respective taxing
authorities.

The table also excludes our pension benefit obligations. We made pension contributions of

$0.3 million and $2.7 million in fiscal 2009 and 2008, respectively. These contributions include payments
related to a supplemental executive retirement plan of zero and $2.3 million in fiscal 2009 and 2008,
respectively, and payments to our union pension plans of $0.3 million and $0.4 million in fiscal 2009
and 2008, respectively. We expect to make pension contributions of $3.4 million to our pension plans
during fiscal 2010. As of March 31, 2009, our defined benefit pension plans are frozen. See Note 15,
‘‘Employee Benefit Plans’’ of our Consolidated Financial Statements for a further discussion of our
pension and other employee benefit plans.

We believe that cash generated by operations and borrowings under the Credit Facility will be
sufficient to meet anticipated cash requirements for our current operations for the foreseeable future.
However, we have a stated policy to grow through acquisitions and are continuously evaluating various
acquisition opportunities. As a result, we currently are pursuing the potential purchase of a number of
candidates. In the event that more than one of these transactions is successfully consummated, the
availability under the Credit Facility might be fully utilized and additional funding sources may be
needed. There can be no assurance that such funding sources will be available to us on terms favorable
to us, if at all.

CRITICAL ACCOUNTING POLICIES

Critical accounting policies are those accounting policies that can have a significant impact on the

presentation of our financial condition and results of operations, and that require the use of complex
and subjective estimates based upon past experience and management’s judgment. Because of the
uncertainty inherent in such estimates, actual results may differ from these estimates. Below are those
policies applied in preparing our financial statements that management believes are the most
dependent on the application of estimates and assumptions. For additional accounting policies, see
Note 2 of ‘‘Notes to Consolidated Financial Statements.’’

Allowance for Doubtful Accounts

Trade receivables are presented net of an allowance for doubtful accounts. In determining the

appropriate allowance, we consider a combination of factors, such as industry trends, our customers’
financial strength and credit standing, and payment and default history. The calculation of the required
allowance requires a judgment as to the impact of these and other factors on the ultimate realization of
our trade receivables. We believe that these estimates are reasonable and historically have not resulted
in material adjustments in subsequent periods when the estimates are adjusted to actual amounts.

Inventories

Inventories are stated at the lower of cost or market using the average cost or specific
identification methods. We write down our inventory for estimated obsolescence or unmarketable
inventory equal to the difference between the cost of inventory and estimated market value based upon
assumptions about future demand and market conditions. If actual market conditions are less favorable
than those anticipated, inventory adjustments may be required. We believe that these estimates are
reasonable and historically have not resulted in material adjustments in subsequent periods when the
estimates are adjusted to actual amounts.

Revenue Recognition

Revenues are recognized in accordance with the contract terms when products are shipped,

delivery has occurred or services have been rendered, pricing is fixed or determinable, and collection is
reasonably assured. The Aftermarket Services Segment provides repair and overhaul services, certain of
which services are provided under long term power-by-the-hour contracts. The Company applies the
proportional performance method to recognize revenue under these contracts. Revenue is recognized
over the contract period as units are delivered based on the relative fair value in proportion to the
total estimated contract consideration. In estimating the total contract consideration, we evaluate the
projected utilization of our customer’s fleet over the term of the contract, in connection with the
related estimated repair and overhaul servicing requirements to the fleet based on such utilization.
Changes in utilization of the fleet by our customers, among other factors, may have an impact on these
estimates and require adjustments to our estimates of revenue to be realized.

Reserves for contract losses are accrued when estimated costs to complete exceed expected future

revenues. The Company’s policy with respect to sales returns and allowances generally provides that the
customer may not return products or be given allowances, except at the Company’s option. Accruals for
sales returns, other allowances, and estimated warranty costs are provided at the time of shipment
based upon past experience.

Goodwill and Intangible Assets

Under Statement of Financial Accounting Standards (‘‘SFAS’’) No. 142, Goodwill and Intangible

Assets (‘‘SFAS No. 142’’), goodwill and intangible assets with indefinite lives are not amortized; rather,
they are tested for impairment on at least an annual basis. Additionally, intangible assets with finite
lives continue to be amortized over their useful lives.

The Company’s operating segments of Aerospace Systems and Aftermarket Services are also the

reporting units under SFAS No. 142. Each operating segment has a president who is responsible for
managing the segment and reporting to the president and CEO of the Company, the Company’s Chief
Operating Decision Maker (‘‘CODM’’), as defined in SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information. Each of the operating segments is comprised of a number of
operating units which are considered to be components under SFAS No. 142. The operating units, for
which discrete financial information exists, are aggregated for purposes of goodwill impairment testing.
The Company’s acquisition strategy is to acquire companies that complement and enhance the

capabilities of the operating segments of the Company. Each acquisition is assigned to either the
Aerospace Systems reporting unit or the Aftermarket Services reporting unit. The goodwill that results
from each acquisition is also assigned to the reporting unit to which the acquisition is allocated,
because it is that reporting unit which is intended to benefit from the synergies of the acquisition.

SFAS No. 142 requires a two-step impairment test for goodwill and intangible assets with indefinite
lives. The first step is to compare the carrying amount of the reporting unit’s assets to the fair value of
the reporting unit. If the fair value exceeds the carrying value, no further work is required and no
impairment loss is recognized. If the carrying amount exceeds the fair value, then the second step is
required to be completed, which involves allocating the fair value of the reporting unit to each asset
and liability, with the excess being implied goodwill. An impairment loss occurs if the amount of the
recorded goodwill exceeds the implied goodwill. The determination of the fair value of our reporting
units is based, among other things, on estimates of future operating performance of the reporting unit
being valued. We are required to complete an impairment test for goodwill and intangible assets with
indefinite lives and record any resulting impairment losses at least annually. Changes in market
conditions, among other factors, may have an impact on these estimates and require interim
impairment assessments. We completed our required annual impairment test in the fourth quarter of
fiscal 2009 and determined that there was no impairment. For our impairment test, we use market
multiples from an external source for an average of stock price to earnings before interest, taxes,
depreciation and amortization (‘‘EBITDA’’) for certain companies in the aerospace and defense
markets in computing the fair value of each reporting unit. In the event that market multiples for stock
price to EBITDA in the aerospace and defense markets decrease, or the expected EBITDA for our
reporting units decreases, a goodwill impairment charge may be required, which would adversely affect
our operating results and financial condition. No impairment charges have been incurred since the
adoption of SFAS No. 142.

Intangible assets are evaluated for indicators of impairment in accordance with SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets. We continually evaluate whether events
or circumstances have occurred that would indicate that the remaining estimated useful lives of our
long-lived assets may warrant revision or that the remaining balance may not be recoverable. When
factors indicate that long-lived assets should be evaluated for possible impairment, an estimate of the
related undiscounted cash flows over the remaining life of the long-lived assets is used to measure
recoverability. Some of the more important factors we consider include our financial performance
relative to our expected and historical performance, significant changes in the way we manage our
operations, negative events that have occurred, and negative industry and economic trends. If any
impairment is indicated, measurement of the impairment will be based on the difference between the
carrying value and fair value of the asset, generally determined based on the present value of expected
future cash flows associated with the use of the asset. For the fiscal years ended March 31, 2009, 2008
and 2007, there were no reductions to the remaining useful lives and no write-downs of long-lived
assets were required.

Recently Issued Accounting Pronouncements

In June 2008, the FASB issued Staff Position EITF 03-06-1, ‘‘Determining Whether Instruments

Granted in Share-Based Payment Transactions Are Participating Securities’’ (‘‘FSP EITF 03-06-1’’).
This Staff Position provides that unvested share-based payment awards that contain nonforfeitable
rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and
shall be included in the computation of earnings per share pursuant to the two-class method in SFAS
No. 128, ‘‘Earnings per Share’’. FSP EITF 03-06-1 is effective for fiscal years beginning after
December 15, 2008 and interim periods within those years and requires all prior-period earnings per
share data to be adjusted retrospectively. FSP EITF 03-06-1 is effective for the Company on April 1,

2009. The adoption of FSP EITF 03-06-1 is not expected to have a material impact on the Company’s
financial statements.

In May 2008, the Financial Accounting Standards Board (‘‘FASB’’) issued FASB Staff Position
(‘‘FSP’’) No. APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon
Conversion (Including Partial Cash Settlement) (‘‘FSP APB 14-1’’). FSP APB 14-1 clarifies that
convertible debt instruments that may be settled in cash upon conversion (including partial cash
settlement) are not addressed by paragraph 12 of APB Opinion No. 14, Accounting for Convertible Debt
and Debt Issued with Stock Purchase Warrants. Additionally, this FSP specifies that issuers of such
instruments should separately account for the liability and equity components in a manner that will
reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent
periods. This FSP is effective for financial statements issued for fiscal years beginning after
December 15, 2008, and interim periods within those fiscal years. Early adoption is not permitted. The
Company estimates the impact of adopting FSP APB 14-1 will result in a cumulative effect adjustment
of approximately $2.2 million reducing the April 1, 2007 balance of retained earnings and additional
charges to interest expense resulting in a reduction to net income of approximately $4.2 million and
$5.1 million for fiscal 2008 and fiscal 2009, respectively.

In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and
Hedging Activities (‘‘SFAS 161’’), which amends and expands the disclosure requirements of FASB
Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (‘‘SFAS 133’’), with the
intent to provide users of financial statements with an enhanced understanding of: (a) how and why an
entity uses derivative instruments; (b) how derivative instruments and related hedged items are
accounted for under SFAS 133 and its related interpretations; and (c) how derivative instruments and
related hedged items affect an entity’s financial position, financial performance and cash flows.
SFAS 161 requires enhanced qualitative disclosures about objectives and strategies for using derivatives,
quantitative disclosures about fair value amounts of and gains and losses on derivative instruments and
enhanced disclosures about credit-risk-related contingent features in derivative instruments. This
statement applies to all entities and all derivative instruments. SFAS 161 is effective for financial
statements issued for fiscal years and interim periods beginning after November 15, 2008. See Note 18
of ‘‘Notes to Consolidated Financial Statements’’ for additional information regarding the Company’s
derivatives.

In December 2007, the FASB issued SFAS No. 141(R), Business Combinations (‘‘SFAS 141(R)’’)

and SFAS No. 160, Accounting and Reporting of Noncontrolling Interests in Consolidated Financial
Statements, an amendment of ARB No. 51 (‘‘SFAS 160). SFAS 141(R) and SFAS 160 significantly change
the accounting for and reporting of business combination transactions and noncontrolling (minority)
interests. SFAS 141(R) and SFAS 160 are effective for fiscal years beginning after December 15, 2008.
SFAS 141(R) and SFAS 160 are effective prospectively; however, the reporting provisions of SFAS 160
are effective retroactively. SFAS 141(R) is required to be adopted concurrently with SFAS 160. The
Company is currently evaluating the impact of the adoption of SFAS 141(R) and SFAS 160 on the
Company’s financial position and results of operations.

Effective April 1, 2008, the Company adopted Emerging Issues Task Force Issue No. 06-10

Accounting for Collateral Assignment Split-Dollar Life Insurance Agreements (‘‘EITF 06-10’’). EITF 06-10
provides guidance for determining a liability for the post-retirement benefit obligation as well as
recognition and measurement of the associated asset on the basis of the terms of the collateral
assignment agreement. The Company recognized a cumulative-effect adjustment of $3.0 million
reducing the April 1, 2008 balance of retained earnings and creating a liability.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (‘‘SFAS 157’’).

SFAS 157 does not require additional fair value measures but defines fair value, establishes a
framework for measuring fair value in accordance with generally accepted accounting principles and

expands disclosures about fair value measurements. This Statement was to be effective for the
Company as of April 1, 2008. However, in February 2008 the FASB issued FSP No. 157-1, which
amends SFAS 157 to exclude SFAS No. 13, ‘‘Accounting for Leases,’’ and other accounting
pronouncements that address fair value measurements for lease transactions, and FSP No. 157-2, which
delayed the effective date of SFAS 157 as it relates to nonfinancial assets and nonfinancial liabilities
until April 1, 2009 for the Company except for items that are recognized or disclosed at fair value in
the Company’s financial statements on a recurring basis. Effective April 1, 2008, the Company adopted
the provisions of this Statement except as it relates to those nonfinancial assets and nonfinancial
liabilities excluded under FSP No. 157-2. The nonfinancial assets and nonfinancial liabilities for which
the Company has not applied the fair value provisions of SFAS 157 include: goodwill; intangible and
other long-lived asset impairment testing; asset retirement obligations; liabilities for exit or disposal
activities; and business combinations. The Company is currently evaluating the impact this Statement
will have on the Company’s financial position, results of operations and cash flows as it relates to
nonfinancial assets and nonfinancial liabilities.

In December 2008, the FASB issued FSP FAS 132(R)-1, ‘‘Employers’ Disclosures about
Postretirement Benefit Plan Assets.’’ This FSP amends SFAS No. 132 (revised 2003), ‘‘Employers’
Disclosures about Pensions and Other Postretirement Benefits,’’ to provide guidance on an employer’s
disclosures about plan assets of a defined benefit pension or other postretirement plan on investment
policies and strategies, major categories of plan assets, inputs and valuation techniques used to measure
the fair value of plan assets and significant concentrations of risk within plan assets. This FSP shall be
effective for fiscal years ending after December 15, 2009, with earlier application permitted. Upon
initial application, the provisions of this FSP are not required for earlier periods that are presented for
comparative purposes. We are currently evaluating the disclosure requirements of this new FSP.

In April 2009, the FASB issued FSP FAS 107-1 and APB 28-1. This FSP amends SFAS No. 107,

Disclosures about Fair Value of Financial Instruments, to require disclosures about fair value of financial
instruments not measured on the balance sheet at fair value in interim financial statements as well as in
annual financial statements. Prior to this FSP, fair values for these assets and liabilities were only
disclosed annually. This FSP applies to all financial instruments within the scope of SFAS 107 and
requires all entities to disclose the method(s) and significant assumptions used to estimate the fair
value of financial instruments. This FSP shall be effective for interim periods ending after June 15,
2009, with early adoption permitted for periods ending after March 15, 2009. An entity may early adopt
this FSP only if it also elects to early adopt FSP FAS 157-4 and FSP FAS 115-2 and FAS 124-2. This
FSP does not require disclosures for earlier periods presented for comparative purposes at initial
adoption. In periods after initial adoption, this FSP requires comparative disclosures only for periods
ending after initial adoption. We are currently evaluating the disclosure requirements of this new FSP.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 relating to our future operations and prospects, including statements
that are based on current projections and expectations about the markets in which we operate, and
management’s beliefs concerning future performance and capital requirements based upon current
available information. Such statements are based on management’s beliefs as well as assumptions made
by and information currently available to management. When used in this document, words like ‘‘may,’’
‘‘might,’’ ‘‘will,’’ ‘‘expect,’’ ‘‘anticipate,’’ ‘‘believe,’’ ‘‘potential,’’ and similar expressions are intended to
identify forward-looking statements. Actual results could differ materially from management’s current
expectations. For example, there can be no assurance that additional capital will not be required or that
additional capital, if required, will be available on reasonable terms, if at all, at such times and in such
amounts as may be needed by us. In addition to these factors, among other factors that could cause
actual results to differ materially, are uncertainties relating to the integration of acquired businesses,

general economic conditions affecting our business segments, dependence of certain of our businesses
on certain key customers as well as competitive factors relating to the aerospace industry. For a more
detailed discussion of these and other factors affecting us, see the risk factors described in ‘‘Item 1A.
Risk Factors.’’

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk

Our primary exposure to market risk consists of changes in interest rates on borrowings. An
increase in interest rates would adversely affect our operating results and the cash flow available after
debt service to fund operations and expansion. In addition, an increase in interest rates would adversely
affect our ability to pay dividends on our common stock, if permitted to do so under certain of our
debt arrangements, including the Credit Facility. We manage exposure to interest rate fluctuations by
optimizing the use of fixed and variable rate debt. As of March 31, 2009, approximately 75% of our
debt is fixed rate debt. Our financing policy states that we generally maintain between 50% and 75% of
our debt as fixed rate debt. We anticipate that our fixed rate debt may exceed 75% of our total debt
during fiscal 2010. In March 2008, the Company entered into a thirty-nine month interest rate swap to
exchange floating rate for fixed rate interest payments to hedge against interest rate changes on
$85.0 million of the Company’s variable rate debt. The Company utilizes the swap to provide protection
to meet actual exposures and does not speculate in derivatives. The net effect of the spread between
the floating rate (30-day LIBOR) and the fixed rate (2.925%) will be reflected as an adjustment to
interest expense in the period incurred. For the fiscal year ended March 31, 2009, $0.5 of losses were
reclassified into earnings from accumulated other comprehensive income. The Company estimates that
$1.9 million of losses presently in accumulated other comprehensive income will be reclassified into
earnings during fiscal year 2010. The information below summarizes our market risks associated with
debt obligations and should be read in conjunction with Note 11 of ‘‘Notes to Consolidated Financial
Statements.’’

The following table presents principal cash flows and the related interest rates. Fixed interest rates

disclosed represent the weighted average rate as of March 31, 2009. Variable interest rates disclosed
fluctuate with the LIBOR, federal funds rates and other weekly rates and represent the weighted
average rate at March 31, 2009.

Expected Years of Maturity

Fixed rate cash flows(1)

Next 12
Months

13-24
Months

25-36
Months

37-48

49-60

Months Months

Thereafter

Total

(in thousands) . . . . . . . . . . .

$14,023

$14,733

$282,356

$8,850

$9,035

$26,860

$355,857

Weighted average interest

rate (%) . . . . . . . . . . . . . . .

2.85

2.86

2.87

5.43

5.42

5.4

Variable rate cash flows

(in thousands) . . . . . . . . . . .

$75,062

$ 42,730

$ 1,655

$119,447

Weighted average interest

rate (%) . . . . . . . . . . . . . . .

2.95

—

1.66

—

—3

3.74

(1) Includes $85 million of variable rate debt which has effectively been converted to fixed rate

through an interest rate swap agreement.

There are no other significant market risk exposures.

Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Triumph Group, Inc.

We have audited the accompanying consolidated balance sheets of Triumph Group, Inc. as of
March 31, 2009 and 2008, and the related consolidated statements of income, stockholders’ equity, and
cash flows for each of the three years in the period ended March 31, 2009. Our audits also included the
financial statement schedule listed in the index at Item 15(a). These financial statements and schedule
are the responsibility of the Company’s management. Our responsibility is to express an opinion on
these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the consolidated financial position of Triumph Group, Inc. at March 31, 2009 and
2008, and the consolidated results of its operations and its cash flows for each of the three years in the
period ended March 31, 2009, in conformity with U.S. generally accepted accounting principles. Also, in
our opinion, the related financial statement schedule, when considered in relation to the basic financial
statements taken as a whole, presents fairly in all material respects the information set forth therein.

As discussed in Note 2, the Company changed its method of accounting for collateral assignment
split-dollar life insurance agreements in 2009. Also, as discussed in Note 15, the Company changed its
method of accounting for defined benefit pension and other postretirement plans in 2007.

We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), Triumph Group, Inc.’s internal control over financial reporting as of
March 31, 2009, based on criteria established in Internal Control-Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission and our report dated May 22,
2009 expressed an unqualified opinion thereon.

/S/ ERNST & YOUNG LLP

Philadelphia, Pennsylvania
May 22, 2009

TRIUMPH GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)

March 31,

2009

2008

Current assets:

ASSETS

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable, less allowance for doubtful accounts of $5,641 and

$4,723 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rotable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14,478

13,738

209,463
389,348
25,652
27,695
1,727
4,434
6,021

678,818
332,467
459,541
108,350
13,731

207,975
350,937
23,392
24,763
1,450
—
5,207

627,462
311,433
383,740
78,488
13,712

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,592,907

$1,414,835

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities related to assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 103,711
109,580
4,283
—
89,085

$ 120,117
83,397
4,587
1,509
1,010

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

306,659

210,620

Long-term debt, less current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable, noncurrent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

386,219
2,917
117,462

418,803
1,437
91,246

Stockholders’ equity:

Common stock, $.001 par value, 100,000,000 and 50,000,000 shares

authorized, 16,763,984 and 16,731,324 shares issued, 16,589,567 and
16,517,374 outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital in excess of par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury stock, at cost, 174,417 and 213,950 shares . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive (loss) income . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16
291,304
(9,785)
(2,233)
500,348

16
288,154
(12,003)
2,950
413,612

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

779,650

692,729

Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . .

$1,592,907

$1,414,835

See notes to consolidated financial statements.

TRIUMPH GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

Year ended March 31,

2009

2008

2007

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,240,378

$1,151,090

$937,327

Operating costs and expenses:

Cost of sales (exclusive of depreciation shown separately below) . .
Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . .

877,744
162,109
48,611

822,288
159,262
43,215

671,838
135,887
35,703

Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss on early extinguishment of debt . . . . . . . . . . . . . . . . .

Income from continuing operations before income taxes . . . . . . . .
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income from continuing operations . . . . . . . . . . . . . . . . . . . . . . .
Loss from discontinued operations, net . . . . . . . . . . . . . . . . . . . .

1,088,464

1,024,765

843,428

151,914
11,096
(2,580)

143,398
45,586

97,812
(4,745)

126,325
13,422
—

112,903
37,161

93,899
11,706
5,088

77,105
26,129

75,742
(8,468)

50,976
(3,905)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

93,067

67,274

$ 47,071

Earnings per share—basic:

Income from continuing operations . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
Loss from discontinued operations, net

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Weighted-average common shares outstanding—basic . . . . . . . . . .

Earnings per share—diluted:

Income from continuing operations . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
Loss from discontinued operations, net

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.97
(0.29)

5.68

16,384

5.90
(0.29)

5.61

4.59
(0.51)

4.08

16,497

4.32
(0.48)

3.84

3.14
(0.24)

2.90

16,220

3.11
(0.24)

2.87

Weighted-average common shares outstanding—diluted . . . . . . . .

16,584

17,540

16,413

See notes to consolidated financial statements.

TRIUMPH GROUP, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Dollars in thousands)

Common Capital in

Accumulated
Other

Outstanding
Shares

Stock

All Classes Par Value

Excess of Treasury Comprehensive Retained
(Loss) Income Earnings

Stock

Total

16,000,269

$16

$260,124

(455)

$ (162)

Balance at March 31, 2006 . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustment .
Pension liability adjustment, net of

income tax benefit of $330 . . . . . . . .

Reclassification adjustment for realized
gain on securities, net of income tax
benefit of $37 . . . . . . . . . . . . . . . .

Total comprehensive income . . . . . .

Adoption of SFAS No. 158, net of

income taxes of $948 . . . . . . . . . . .
Exercise of stock options . . . . . . . . . .
Cash dividends ($0.12 per share) . . . . .
Share-based compensation . . . . . . . . .
Excess tax benefit from exercise of stock
options . . . . . . . . . . . . . . . . . . . .

Balance at March 31, 2007 . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustment .
Pension liability adjustment, net of

income tax benefit of $396 . . . . . . . .

Change in fair value of interest rate
swap, net of income tax benefit of
$196 . . . . . . . . . . . . . . . . . . . . . .

Total comprehensive income . . . . . .

Adoption of FIN 48 . . . . . . . . . . . . .
Purchase of 220,000 shares of common

stock . . . . . . . . . . . . . . . . . . . . .
Exercise of stock options . . . . . . . . . .
Cash dividends ($0.16 per share) . . . . .
Share-based compensation . . . . . . . . .
Excess tax benefit from exercise of stock
options . . . . . . . . . . . . . . . . . . . .

Balance at March 31, 2008 . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . .
Foreign currency translation adjustment .
Pension liability adjustment, net of

income taxes of $253 . . . . . . . . . . .

Change in fair value of interest rate
swap, net of income tax benefit of
$1,073.

. . . . . . . . . . . . . . . . . . . .

Total comprehensive income . . . . . .

Adoption of EITF 06-10 and other . . . .
Exercise of stock options . . . . . . . . . .
Cash dividends ($0.16 per share) . . . . .
Share-based compensation . . . . . . . . .
Excess tax benefit from exercise of stock
options . . . . . . . . . . . . . . . . . . . .

—

—
417,937
—
51,411

—

16,469,617
—
—

—

(220,000)
170,943
—
96,814

—

16,517,374
—
—

—

—
37,333
—
34,860

—

—
—
—
—

—

16
—
—

—

—
—
—
—

—

16
—
—

—

—
—
—
—

—

—
13,588
—
2,524

1,941

278,177
—
—

—

—
455
—
—

—

—
—
—

—

— (12,342)
339
—
—

5,431
—
2,809

1,737

288,154
—
—

—

(12,003)
—
—

—

—
(275)
—
3,180

—
2,218
—
—

245

—

$304,180 $563,703
47,071
1,155

47,071
—

—

562

(62)

48,726

— (1,613)
— 14,043
(1,961)
2,524

(1,961)
—

—

1,941

349,290
67,274
—

627,363
67,274
2,731

—

674

(335)

— 70,344

(291)

— (12,342)
5,770
—
(2,661)
(2,661)
2,809
—

—

1,737

413,612
93,067

692,729
93,067
— (2,927)

—

(431)

1,155

562

(62)

(1,613)
—
—
—

—

(120)
—
2,731

674

(335)

—

—
—
—
—

—

2,950
—
(2,927)

(431)

(1,825)

— (1,825)

87,884

(2,965)
1,229
(2,652)
3,180

(2,965)
(714)
(2,652)
—

—

245

—
—
—
—

—

Balance at March 31, 2009 . . . . . . . . . .

16,589,567

$16

$291,304

$ (9,785)

$(2,233)

$500,348 $779,650

See notes to consolidated financial statements.

TRIUMPH GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

Operating Activities
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to reconcile net income to net cash provided by

operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on early extinguishment of debt . . . . . . . . . . . . . . . . . . . .
Other amortization included in interest expense . . . . . . . . . . . . .
Provision for doubtful accounts receivable . . . . . . . . . . . . . . . . .
Provision for deferred income taxes . . . . . . . . . . . . . . . . . . . . . .
Employee stock compensation . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in other current assets and liabilities, excluding the

effects of acquisitions:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rotable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other current assets . . . . . . . . . . . . . . .
Accounts payable, accrued expenses and income taxes payable
Changes in discontinued operations . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,

2009

2008

2007

$ 93,067

$ 67,274

$ 47,071

48,611
(2,580)
2,059
2,406
15,248
3,180

10,478
(7,719)
(2,260)
1,066
(23,467)
(3,236)
(1,856)

43,215
—
1,621
1,643
8,380
2,809

(36,112)
(46,950)
(13,350)
591
21,665
(3,913)
(1,148)

45,725

35,703
—
1,835
1,047
5,969
2,524

(9,571)
(51,844)
(3,585)
(623)
16,305
(792)
(2,699)

41,340

Net cash provided by operating activities . . . . . . . . . . . . . . . . . . .

134,997

Investing Activities
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of assets and businesses . . . . . . . . . . . . . . . . .
Cash used for businesses and intangible assets acquired . . . . . . . . .

(45,421)
881
(141,073)

(56,971)
5,698
(68,527)

(55,092)
1,123
(140,332)

Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . .

(185,613)

(119,800)

(194,301)

Financing Activities
Net (decrease) increase in revolving credit facility . . . . . . . . . . . . .
Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . .
Proceeds from equipment leasing facility . . . . . . . . . . . . . . . . . . . .
Retirement of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayment of debt and capital lease obligations . . . . . . . . . . . . . .
Payment of deferred financing cost . . . . . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from exercise of stock options, including excess tax

(66,020)
78,282
58,734
(15,420)
(1,101)
(1,187)
(2,652)
—

68,975
92,950
202,088
161
—
—
— (124,424)
(114)
(6,252)
(1,961)
—

(5,775)
(72)
(2,661)
(12,342)

benefit of $245, $1,737, and $1,941 in 2009, 2008, and 2007 . . . .

1,474

7,507

15,984

Net cash provided by financing activities . . . . . . . . . . . . . . . . . . . .

52,110

79,768

154,296

Effect of exchange rate changes on cash . . . . . . . . . . . . . . . . . . . .

(754)

Net change in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

740
13,738

802

6,495
7,243

Cash at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 14,478

$ 13,738

265

1,600
5,643

7,243

See notes to consolidated financial statements.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share data)

1. BACKGROUND AND BASIS OF PRESENTATION

Triumph Group, Inc. (‘‘Triumph’’) is a Delaware corporation which, through its operating
subsidiaries, designs, engineers, manufactures and sells products for the global aerospace original
equipment manufacturers (‘‘OEMs’’) of aircraft and aircraft components and repairs and overhauls
aircraft components and accessories for commercial airline, air cargo carrier and military customers on
a worldwide basis. Triumph and its subsidiaries (collectively, the ‘‘Company’’) is organized based on the
products and services that it provides. Under this organizational structure, the Company has two
reportable segments: the Aerospace Systems Group and the Aftermarket Services Group.

The Aerospace Systems segment consists of the Company’s operations which manufacture products

primarily for the aerospace OEM market. The segment’s operations design and engineer mechanical
and electromechanical controls, such as hydraulic systems and components, main engine gearbox
assemblies, accumulators and mechanical control cables. The segment’s revenues are also derived from
stretch forming, die forming, milling, bonding, machining, welding and assembly and fabrication of
various structural components used in aircraft wings, fuselages and other significant assemblies. Further,
the segment’s operations also design and manufacture composite assemblies for floor panels,
environmental control system ducts and non-structural cockpit components. These products are sold to
various aerospace OEMs on a global basis.

The Aftermarket Services segment consists of the Company’s operations that provide maintenance,

repair and overhaul services to both commercial and military markets on components and accessories
manufactured by third parties. Maintenance, repair and overhaul revenues are derived from services on
auxiliary power units, air frame and engine accessories, including constant-speed drives, cabin
compressors, starters and generators, and pneumatic drive units. In addition, the segment’s operations
repair and overhaul thrust reversers, nacelle components and flight control surfaces. The segment’s
operations also perform repair and overhaul services, and supply spare parts, for various types of
cockpit instruments and gauges for a broad range of commercial airlines on a worldwide basis.

Repair services generally involve the replacement of parts and/or the remanufacture of parts, which

is similar to the original manufacture of the part. The processes that the Company performs related to
repair and overhaul services are essentially the repair of wear parts or replacement of parts that are
beyond economic repair. The repair service generally involves remanufacturing a complete part or a
component of a part.

The accompanying consolidated financial statements include the accounts of Triumph and its
subsidiaries. Intercompany accounts and transactions have been eliminated from the consolidated
financial statements.

The preparation of financial statements in conformity with accounting principles generally accepted

in the United States requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results could differ from those
estimates.

Certain reclassifications have been made to prior-year amounts in order to conform to the

current-year presentation.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Concentration of Credit Risk

Accounts receivable are recorded net of an allowance for doubtful accounts. The Company
performs ongoing credit evaluations of its customers and generally does not require collateral. The
Company records the allowance for doubtful accounts based on prior experience and for specific
collectibility matters when they arise. The Company writes off balances against the reserve when
collectibility is deemed remote. The Company’s trade accounts receivable are exposed to credit risk;
however, the risk is limited due to the diversity of the customer base.

Inventories

Inventories are stated at the lower of cost or market using the average-cost or specific-

identification methods. The Company writes down its inventory for estimated obsolescence or
unmarketable inventory equal to the difference between the cost of inventory and estimated market
value based upon assumptions about future demand and market conditions. If actual market conditions
are less favorable than those anticipated, inventory adjustments may be required. The Company
believes that these estimates are reasonable and historically have not resulted in material adjustments
in subsequent periods when the estimates are adjusted to actual amounts.

Property and Equipment

Property and equipment, which includes equipment under capital lease and leasehold

improvements, are recorded at cost and depreciated over the estimated useful lives of the related
assets, or the lease term if shorter in the case of leasehold improvements, by the straight-line method.
Buildings and improvements are depreciated over a period of 15 to 391⁄2 years, and machinery and
equipment are depreciated over a period of 7 to 15 years (except for furniture, fixtures and computer
equipment which are depreciated over a period of 3 to 10 years).

Goodwill and Intangible Assets

The Company accounts for purchased goodwill and intangible assets in accordance with Statement

of Financial Accounting Standards (‘‘SFAS’’) No. 142, Goodwill and Other Intangible Assets (‘‘SFAS
No. 142’’). Under SFAS No. 142, purchased goodwill and intangible assets with indefinite lives are not
amortized; rather, they are tested for impairment on at least an annual basis. Intangible assets with
finite lives are amortized over their useful lives.

The Company’s operating segments of Aerospace Systems and Aftermarket Services are also the

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

from each acquisition is also assigned to the reporting unit to which the acquisition is allocated,
because it is that reporting unit which is intended to benefit from the synergies of the acquisition.

In order to test goodwill and intangible assets with indefinite lives under SFAS No. 142, a
determination of the fair value of the Company’s reporting units and intangible assets with indefinite
lives is required and is based, among other things, on estimates of future operating performance of the
reporting unit and/or the component of the entity being valued. The Company is required to complete
an impairment test for goodwill and intangible assets with indefinite lives and record any resulting
impairment losses at least on an annual basis. Changes in market conditions, among other factors, may
have an impact on these estimates and require interim impairment assessments. The Company
completed its required annual impairment tests in the fourth quarters of fiscal 2009, 2008 and 2007 and
determined that there was no impairment.

Intangible assets are evaluated for indicators of impairment in accordance with SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets. The Company continually evaluates
whether events or circumstances have occurred that would indicate that the remaining estimated useful
lives of long-lived assets may warrant revision or that the remaining balance may not be recoverable.
When factors indicate that long-lived assets should be evaluated for possible impairment, an estimate of
the related undiscounted cash flows over the remaining life of the long-lived assets is used to measure
recoverability. Some of the more important factors management considers include the Company’s
financial performance relative to expected and historical performance, significant changes in the way
the Company manages its operations, negative events that have occurred, and negative industry and
economic trends. If any impairment is indicated, measurement of the impairment will be based on the
difference between the carrying value and fair value of the asset, generally determined based on the
present value of expected future cash flows associated with the use of the asset. For the fiscal years
ended March 31, 2009, 2008 and 2007, exclusive of the charges recorded in connection with
discontinued operations, there were no reductions to the remaining useful lives and no write-downs of
long-lived assets were required.

Revenue Recognition

Revenues are recognized in accordance with the contract terms when products are shipped,

delivery has occurred or services have been rendered, pricing is fixed or determinable, and collection is
reasonably assured. The Aftermarket Services Group provides repair and overhaul services, certain of
which services are provided under long term power-by-the-hour contracts. The Company applies the
proportional performance method to recognize revenue under these contracts. Revenue is recognized
over the contract period as units are delivered based on the relative fair value in proportion to the
total estimated contract consideration. In estimating the total contract consideration, management
evaluates the projected utilization of its customer’s fleet over the term of the contract, in connection
with the related estimated repair and overhaul servicing requirements to the fleet based on such
utilization. Changes in utilization of the fleet by customers, among other factors, may have an impact
on these estimates and require adjustments to estimates of revenue to be realized.

Reserves for contract losses are accrued when estimated costs to complete exceed expected future

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

sales returns, other allowances, and estimated warranty costs are provided at the time of shipment
based upon past experience.

Shipping and Handling Costs

The cost of shipping and handling products is included in cost of products sold.

Research and Development Expense

Research and development expense was approximately $21,001, $9,883 and $8,767 for the fiscal

years ended March 31, 2009, 2008 and 2007, respectively.

Foreign Currency Translation

The determination of the functional currency for Triumph’s foreign subsidiaries is made based on

appropriate economic factors. The functional currency of the Company’s subsidiaries, Triumph Logistics
(UK) Ltd. and Triumph Aviation Services—Asia, is the U.S. dollar since that is the currency in which
those entities primarily generate and expend cash. The functional currency of the Company’s remaining
subsidiaries is the local currency, since that is the currency in which those entities primarily generate
and expend cash. Assets and liabilities of these subsidiaries are translated at the rates of exchange at
the balance sheet date. Income and expense items are translated at average monthly rates of exchange.
The resultant translation adjustments are included in accumulated other comprehensive income. At
March 31, 2009 and 2008, accumulated comprehensive income resulting from foreign currency
translation was $2,184 and $5,111, respectively. Gains and losses arising from foreign currency
transactions of these subsidiaries are included in net income.

Income Taxes

In accordance with the provisions of SFAS No. 109, Accounting for Income Taxes, the Company
accounts for income taxes using the asset and liability method. The asset and liability method requires
recognition of deferred tax assets and liabilities for expected future tax consequences of temporary
differences that currently exist between tax bases and financial reporting bases of the Company’s assets
and liabilities.

Recently Issued Accounting Pronouncements

In June 2008, the Financial Accounting Standards Board (‘‘FASB’’) issued Staff Position
EITF 03-06-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are
Participating Securities (‘‘FSP EITF 03-06-1’’). This Staff Position provides that unvested share-based
payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or
unpaid) are participating securities and shall be included in the computation of earnings per share
pursuant to the two-class method in SFAS No. 128, Earnings per Share. FSP EITF 03-06-1 is effective
for fiscal years beginning after December 15, 2008 and interim periods within those years and requires
all prior-period earnings per share data to be adjusted retrospectively. FSP EITF 03-06-1 is effective for
the Company on April 1, 2009. The adoption of FSP EITF 03-06-1 is not expected to have a material
impact on the Company’s financial statements.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In May 2008, the FASB issued FASB Staff Position (‘‘FSP’’) No. APB 14-1, Accounting for
Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash
Settlement) (‘‘FSP APB 14-1’’). FSP APB 14-1 clarifies that convertible debt instruments that may be
settled in cash upon conversion (including partial cash settlement) are not addressed by paragraph 12
of APB Opinion No. 14, Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants.
Additionally, this FSP specifies that issuers of such instruments should separately account for the
liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing
rate when interest cost is recognized in subsequent periods. This FSP is effective for financial
statements issued for fiscal years beginning after December 15, 2008, and interim periods within those
fiscal years. Early adoption is not permitted. The Company estimates the impact of adopting FSP
APB 14-1 will result in a cumulative effect adjustment of approximately $2,185 reducing the April 1,
2007 balance of retained earnings and additional charges to interest expense resulting in a reduction to
net income for fiscal 2008 and fiscal 2009 of approximately $4,194 and $5,114, respectively.

In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and
Hedging Activities (‘‘SFAS 161’’), which amends and expands the disclosure requirements of FASB
Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (‘‘SFAS 133’’), with the
intent to provide users of financial statements with an enhanced understanding of: (a) how and why an
entity uses derivative instruments; (b) how derivative instruments and related hedged items are
accounted for under SFAS 133 and its related interpretations; and (c) how derivative instruments and
related hedged items affect an entity’s financial position, financial performance and cash flows.
SFAS 161 requires enhanced qualitative disclosures about objectives and strategies for using derivatives,
quantitative disclosures about fair value amounts of and gains and losses on derivative instruments and
enhanced disclosures about credit-risk-related contingent features in derivative instruments. This
statement applies to all entities and all derivative instruments. SFAS 161 is effective for financial
statements issued for fiscal years and interim periods beginning after November 15, 2008 and, as a
result, enhanced disclosures have been included in Note 18.

In December 2007, the FASB issued SFAS No. 141(R), Business Combinations (‘‘SFAS 141(R)’’)

Effective April 1, 2008, the Company adopted, Emerging Issues Task Force Issue No. 06-10

Accounting for Collateral Assignment Split-Dollar Life Insurance Agreements (‘‘EITF 06-10’’). EITF 06-10
provides guidance for determining a liability for the postretirement benefit obligation as well as
recognition and measurement of the associated asset on the basis of the terms of the collateral
assignment agreement. The Company recognized a cumulative-effect adjustment of $2,991 reducing the
April 1, 2008 balance of retained earnings and creating a long-term liability.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (‘‘SFAS 157’’).

SFAS 157 does not require additional fair value measures but defines fair value, establishes a
framework for measuring fair value in accordance with generally accepted accounting principles, and
expands disclosures about fair value measurements. This Statement was to be effective for the
Company as of April 1, 2008. However, in February 2008, the FASB issued FSP No. 157-1, which
amends SFAS 157 to exclude SFAS No. 13, Accounting for Leases, and other accounting
pronouncements that address fair value measurements for lease transactions, and FSP No. 157-2, which
delayed the effective date of SFAS 157 as it relates to nonfinancial assets and nonfinancial liabilities
until April 1, 2009 for the Company except for items that are recognized or disclosed at fair value in
the Company’s financial statements on a recurring basis. Effective April 1, 2008, the Company adopted
the provisions of this Statement except as it relates to those nonfinancial assets and nonfinancial
liabilities excluded under FSP No. 157-2. The nonfinancial assets and nonfinancial liabilities for which
the Company has not applied the fair value provisions of SFAS 157 include: goodwill; intangible and
other long-lived asset impairment testing; asset retirement obligations; liabilities for exit or disposal
activities; and business combinations. The Company is currently evaluating the impact this Statement
will have on the Company’s financial position, results of operations and cash flows as it relates to
nonfinancial assets and nonfinancial liabilities.

In December 2008, the FASB issued FSP FAS 132(R)-1, Employers’ Disclosures about Postretirement

Benefit Plan Assets. This FSP amends SFAS No. 132 (revised 2003), Employers’ Disclosures about
Pensions and Other Postretirement Benefits, to provide guidance on an employer’s disclosures about plan
assets of a defined benefit pension or other postretirement plan on investment policies and strategies,
major categories of plan assets, inputs and valuation techniques used to measure the fair value of plan
assets and significant concentrations of risk within plan assets. This FSP shall be effective for fiscal
years ending after December 15, 2009, with earlier application permitted. Upon initial application, the
provisions of this FSP are not required for earlier periods that are presented for comparative purposes.
We are currently evaluating the disclosure requirements of this new FSP.

In April 2009, the FASB issued FSP FAS 107-1 and APB 28-1 (‘‘the FSP’’). This FSP amends

SFAS No. 107, Disclosures about Fair Value of Financial Instruments, to require disclosures about fair
value of financial instruments not measured on the balance sheet at fair value in interim financial
statements as well as in annual financial statements. Prior to this FSP, fair values for these assets and
liabilities were only disclosed annually. This FSP applies to all financial instruments within the scope of
SFAS 107 and requires all entities to disclose the method(s) and significant assumptions used to
estimate the fair value of financial instruments. This FSP shall be effective for interim periods ending
after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. An entity
may early adopt this FSP only if it also elects to early adopt FSP FAS 157-4 and FSP FAS 115-2 and
FAS 124-2. This FSP does not require disclosures for earlier periods presented for comparative
purposes at initial adoption. In periods after initial adoption, this FSP requires comparative disclosures
only for periods ending after initial adoption. We are currently evaluating the disclosure requirements
of this new FSP.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Stock-Based Compensation

In December 2004, the FASB issued SFAS No. 123R, Share-Based Payment, which requires

companies to measure compensation cost for all share-based payments (including employee stock
options) at fair value. The Company adopted SFAS No. 123R, using the modified-prospective transition
method, beginning on April 1, 2006, and therefore began to expense the fair value of all outstanding
options over their remaining vesting periods to the extent the options were not fully vested as of the
adoption date and began to expense the fair value of all options granted subsequent to March 31, 2006
over their requisite service periods. SFAS No. 123R also requires the benefits of tax deductions in
excess of recognized compensation expense to be reported as a financing cash flow ($245, $1,737 and
$1,941 for fiscal years ended March 31, 2009, 2008 and 2007, respectively), rather than an operating
cash flow. Stock-based compensation expense related to employee stock options recognized under SFAS
No. 123R for fiscal years 2009, 2008, and 2007 was $3,180, $2,809 and $2,524, respectively, and, in
accordance with Staff Accounting Bulletin (‘‘SAB’’) 107 the Company has classified share-based
compensation within selling, general and administrative expenses to correspond with the same line item
as the majority of the cash compensation paid to employees. Previous periods have not been restated.
Upon the exercise of stock options or vesting of restricted stock, the Company first transfers treasury
stock, then will issue new shares. (See Note 16 for further details.)

3. ACQUISITIONS

FISCAL 2009 ACQUISITIONS

Acquisition of Merritt Tool Company

Effective March 13, 2009, the Company acquired all of the outstanding shares of Merritt Tool

Company, Inc. (‘‘Merritt’’), renamed Triumph Structures—East Texas, Inc. Triumph Structures—East
Texas, Inc. is a manufacturer of aircraft structural components specializing in complex precision
machining primarily for commercial and military aerospace programs. Merritt provides the Company
with expanded capacity and increased market share in structural components. The results for Triumph
Structures—East Texas, Inc. are included in the Company’s Aerospace Systems segment.

Acquisition of Saygrove Defence & Aerospace Group Limited

Effective March 13, 2009, the Company acquired all of the outstanding shares of Saygrove
Defence & Aerospace Group Limited (‘‘Saygrove’’), renamed Triumph Actuation & Motion Control
Systems—UK, Ltd. Triumph Actuation & Motion Control Systems—UK, Ltd. is a provider of motion
control and actuation products for the aerospace and defense industry. Saygrove provides the Company
with added advanced control products for flight actuation and motor control applications in all-electric
aircraft and Unmanned Aerial Vehicles. The results for Triumph Actuation & Motion Control
Systems—UK, Ltd. are included in the Company’s Aerospace Systems segment.

Acquisition of Aviation Segment of Kongsberg Automotive Holdings ASA

Effective March 31, 2009, the Company acquired the assets of the aviation segment of Kongsberg

Automotive Holdings ASA (‘‘KA’’) through two newly organized wholly-owned subsidiaries, Triumph
Controls—UK, Ltd. and Triumph Controls—Germany, GmbH. The acquired business, which is located

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

3. ACQUISITIONS (Continued)

in Basildon, U.K. and Heiligenhaus, Germany, provides cable control systems for commercial and
military aircraft to Europe’s leading aerospace manufacturers. KA provides the Company with
expanded capacity and increased market share in cable control systems. The results for Triumph
Controls—UK, Ltd. and Triumph Controls—Germany, GmbH will be included in the Company’s
Aerospace Systems segment.

Acquisition of The Mexmil Company, LLC

Effective March 31, 2009, the Company acquired all of the equity interests of The Mexmil

Company, LLC, and all of the equity interests of several affiliates (‘‘Mexmil’’), renamed Triumph
Insulation Systems, LLC. Triumph Insulation Systems, LLC and its affiliates primarily provide insulation
systems to OEMs, airlines, maintenance, repair and overhaul organizations and air cargo carriers.
Mexmil provides the Company with an enhanced ability to provide a more comprehensive interiors
solution to current and future customers. The results for Triumph Insulation Systems, LLC and its
affiliates will be included in the Company’s Aerospace Systems segment.

The acquisitions of Merritt, Saygrove, KA and Mexmil are herein referred to as the ‘‘fiscal 2009
acquisitions.’’ The combined purchase price of the fiscal 2009 acquisitions of $151,532 includes cash
paid at closing, estimated deferred payments and direct costs of the transactions. Included in the
deferred payments are delayed payments of $2,132 and $1,421 payable in March 2010 and September
2010, respectively. The fiscal 2009 acquisitions also provide for contingent payments, certain of which
are contingent upon the achievement of specified earnings levels during the earnout period and another
$10,000 that is contingent upon entering into a specific customer contract. The maximum amounts
payable in respect of fiscal 2010, 2011, 2012 and 2013, respectively, are $2,322, $4,598, $5,426 and
$2,629. The contingent amounts have not been recorded as the contingencies have not been resolved
and the consideration has not been paid. The excess of the combined purchase price over the
preliminary estimated fair value of the net assets acquired of $73,260 was recorded as goodwill, $60,944
of which is tax-deductible. The Company has also identified intangible assets valued at approximately
$45,466 comprised of noncompete agreements, customer relationships, and product rights and licenses
with a weighted-average life of 9.3 years. The Company is awaiting final appraisals of tangible and
intangible assets and assumed liabilities related to the fiscal 2009 acquisitions. Accordingly, the
Company has recorded its best estimate of the intangibles and property and equipment subject to
appraisals. Therefore, the allocation of purchase price for the fiscal 2009 acquisitions is not complete
and is subject to change.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

3. ACQUISITIONS (Continued)

The following condensed balance sheet represents the amounts assigned to each major asset and

liability caption in the aggregate for fiscal 2009 acquisitions:

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 5,182
15,040
28,156
2,111
1,269
16,094
73,260
45,466

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$186,578

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 9,499
21,229
20
4,298

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 35,046

The fiscal 2009 acquisitions have been accounted for under the purchase method of accounting

and, accordingly, are included in the consolidated financial statements from the effective dates of
acquisition. The fiscal 2009 acquisitions were funded by the Company’s long-term borrowings in place
at the dates of acquisition.

FISCAL 2008 ACQUISITIONS

Acquisition of B. & R. Machine & Tool Corp.

Effective February 27, 2008, the Company acquired the assets and business of B. & R. Machine &

Tool Corp. (‘‘B & R’’) through a newly organized, wholly-owned subsidiary of the Company, Triumph
Structures—Long Island, LLC. Triumph Structures—Long Island, LLC provides aircraft structural
components and dynamic parts and assemblies for commercial and military aerospace programs. The
results for Triumph Structures—Long Island, LLC are included in the Company’s Aerospace Systems
segment.

The purchase price for B & R of $84,044 includes cash paid at closing, estimated deferred

payments and direct costs of the transaction. Included in the estimated deferred payments is an earnout
note for $13,000. Payments under the earnout note are contingent upon the achievement of certain
earnings levels during the earnout period. The maximum amounts payable in respect of fiscal 2009,
2010 and 2011 are $3,500, $4,500 and $5,000, respectively. The excess of the purchase price over the
estimated fair value of the net assets acquired of $47,885 was recorded as goodwill, all of which is
tax-deductible. The Company has also identified intangible assets valued at approximately $16,300 with
a weighted-average life of 10 years. During fiscal 2009, the Company finalized the purchase price
allocation for the B & R acquisition as a result of receiving the final valuation of inventory and final

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

3. ACQUISITIONS (Continued)

appraisal of tangible and intangible assets. Based on the revised allocation, an additional $1,257 and
$2,443 was allocated to inventory and goodwill, respectively; intangible assets were reduced by $3,700.

The following condensed balance sheet represents the amounts assigned to each major asset and

liability caption in the aggregate for the B & R acquisition:

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property and equipment
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 4,416
11,257
6
9,962
82
47,885
16,300

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$89,908

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 3,019
3,595
786
2,508

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 9,908

The B & R acquisition has been accounted for under the purchase method and, accordingly, is
included in the consolidated financial statements from the effective date of acquisition. The acquisition
was funded by the Company’s long-term borrowings in place at the date of acquisition.

FISCAL 2007 ACQUISITIONS

Acquisition of Excel Manufacturing, Inc.

Effective April 1, 2006, the Company acquired the assets and business of Excel Manufacturing, Inc.

(‘‘Excel’’) through a newly organized, wholly-owned subsidiary of the Company, Triumph Structures—
Wichita, Inc. The results for Triumph Structures—Wichita, Inc. are included in the Company’s
Aerospace Systems segment. The purchase accounting for the acquisition of Excel was finalized during
fiscal 2007.

Acquisition of Air Excellence International, Inc.

Effective April 1, 2006, the Company acquired the assets and business of Air Excellence
International, Inc. and its affiliates (‘‘Air Excellence’’) through two newly organized, wholly-owned
subsidiaries of the Company, Triumph Interiors, LLC and Triumph Interiors Limited. The results for
Triumph Interiors, LLC and Triumph Interiors Limited are included in the Company’s Aftermarket
Services segment. The purchase accounting for the acquisition of Air Excellence was finalized during
fiscal 2007.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

3. ACQUISITIONS (Continued)

Acquisition of Allied Aerospace Industries, Inc.

Effective November 1, 2006, the Company acquired Allied Aerospace Industries, Inc. (‘‘Allied’’)

through the merger of a newly organized, wholly-owned subsidiary of the Company, with and into
Allied. The acquired business has since been consolidated into a single subsidiary of the Company,
Triumph Aerospace Systems—Newport News, Inc. Triumph Aerospace Systems—Newport News, Inc.
specializes in engineering design and manufacturing solutions for complex aerospace and defense
programs. The results for Triumph Aerospace Systems—Newport News, Inc. are included in the
Company’s Aerospace Systems segment.

During the first half of fiscal 2008, the Company finalized the purchase price allocation for the
Allied acquisition as a result of receiving the final appraisal of tangible and intangible assets, finalizing
the deferred tax accounting and recording the final purchase price adjustment as per the purchase
agreement. Based on the revised allocation, an additional $100 was allocated to intangible assets while
the amount allocated to tangible assets was reduced by $232. The purchase price was reduced by $1,055
related to the final negotiation of the values on the closing balance sheet.

Acquisition of Grand Prairie Accessory Services, LLC

Effective January 1, 2007, the Company acquired the assets and business of Grand Prairie

Accessory Services, LLC (‘‘Grand Prairie’’) through a newly organized, wholly-owned subsidiary of the
Company, Triumph Accessory Services—Grand Prairie, Inc. Triumph Accessory Services—Grand
Prairie, Inc. provides comprehensive maintenance solutions for engine accessories related to the CF34,
CFM56, CF6, CT7 and V2500 family of engines. Capabilities include fuel, oil, pneumatic, hydraulic and
mechanical engine accessories for those and other aero and aero-derivative gas turbine engines. The
results for Triumph Accessory Services—Grand Prairie are included in the Company’s Aftermarket
Services segment.

During the third quarter of fiscal 2008, the Company finalized the purchase price allocation for the

Grand Prairie acquisition as a result of receiving the final appraisal of tangible and intangible assets
and finalizing the deferred tax accounting. Based on the revised allocation, an additional $1,532 was
allocated to tangible assets; intangible assets and goodwill were reduced by $1,215 and $561,
respectively; a deferred tax asset of $169 was established, and other liabilities were reduced by $75.

The following unaudited pro forma information for the fiscal years ended March 31, 2009 and
2008 have been prepared assuming the fiscal 2009 acquisitions and the B & R acquisition had occurred
on April 1, 2007. The pro forma information for the fiscal year ended March 31, 2009 is as follows: Net
sales: $1,334,025; Income from continuing operations: $95,807; Income per share from continuing
operations—basic: $5.85; Income per share from continuing operations—diluted: $5.78. The pro forma
information for the fiscal year ended March 31, 2008 is as follows: Net sales: $1,288,708; Income from
continuing operations: $74,988; Income per share from continuing operations—basic: $4.55; and Income
per share from continuing operations—diluted: $4.28.

The unaudited pro forma information includes adjustments for interest expense that would have
been incurred to finance the purchase, additional depreciation based on the estimated fair market value
of the property and equipment acquired, and the amortization of the intangible assets arising from the

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

3. ACQUISITIONS (Continued)

transactions. The unaudited pro forma financial information is not necessarily indicative of the results
of operations as it would have been had the transaction been effected on the assumed date.

4. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

In September 2007, the Company sold the assets of Triumph Precision, Inc., a build-to-specification

manufacturer and supplier of ultra-precision machined components and assemblies in its Aerospace
Systems segment. The effective date of the sale was July 1, 2007. The Company recognized a pretax
loss of $650 on the sale of the business, which included costs to sell of $150. The Company has also
decided to sell Triumph Precision Castings Co., a casting facility in its Aftermarket Services segment
that specializes in producing high-quality hot gas path components for aero and land-based gas
turbines. The Company recognized a pretax loss of $3,500 in the first quarter of fiscal 2008 based upon
a write-down of the carrying value of the business to estimated fair value less costs to sell. The
write-down was applied to inventory and long-lived assets, consisting primarily of property, plant and
equipment. For financial statement purposes, the assets, liabilities, results of operations and cash flows
of these businesses have been segregated from those of the continuing operations and are presented in
the Company’s consolidated financial statements as discontinued operations and assets and liabilities
held for sale.

Revenues of discontinued operations were $10,433, $10,913 and $17,408 for the fiscal years ended

March 31, 2009, March 31, 2008 and March 31, 2007, respectively. The loss from discontinued
operations was $4,745, $8,468 and $3,905, net of income tax benefit of $2,556, $4,560 and $2,103 for the
fiscal years ended March 31, 2009, March 31, 2008 and March 31, 2007, respectively. Interest expense
of $2,913, $2,835 and $2,762 was allocated to discontinued operations for the fiscal years ended
March 31, 2009, March 31, 2008 and March 31, 2007, respectively, based upon the actual borrowings of
the operations, and such interest expense is included in the loss from discontinued operations.

On October 6, 2008, the Company exercised the buy out provision in the operating lease on its

casting facility. Accordingly, the property, plant and equipment related to the assets held for sale
increased by $3,535.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

4. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Continued)

Assets and liabilities held for sale are comprised of the following:

March 31,

2009

2008

Assets held for sale:

Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 6,838
11,763
9,062
32

$ 7,689
11,272
5,711
91

Total assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . .

$27,695

$24,763

Liabilities held for sale:

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities and other . . . . . . . . . . . . . . . . . . . . . .

$ 1,630
475
2,178

$ 1,378
1,253
1,956

Total liabilities held for sale . . . . . . . . . . . . . . . . . . . . . . . .

$ 4,283

$ 4,587

5. INVENTORIES

Inventories are stated at the lower of cost (average-cost or specific-identification methods) or

market. The components of inventories are as follows:

Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manufactured and purchased components . . . . . . . . . . . . . . .
Work-in-process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 51,856
142,833
113,641
81,018

$ 31,937
133,343
117,061
68,596

Total inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$389,348

$350,937

March 31,

2009

2008

6. ROTABLE ASSETS

In the third quarter of fiscal 2009, the Company made a change to the classification of its

inventory of rotable assets. Rotable assets are those assets that can be repaired and then reused by the
Company in an exchange transaction through its maintenance, repair and overhaul businesses. The
Company now classifies its inventory of rotable assets as a current asset whereas previously these assets
were classified by the Company’s operating locations as either inventory or property and equipment.

The Company has reclassified amounts in its prior-period financial statements, included herein, to

conform to the current-year presentation. Rotable assets of $23,392 as of March 31, 2008 are now
shown separately within current assets in the accompanying consolidated balance sheets. This amount is
comprised of $10,730 and $12,662 which was previously reported in inventory and property and
equipment, net, respectively. Also, additions to rotable assets during the fiscal years ended March 31,
2008 and 2007 of $5,397 and $4,099, respectively, originally classified as capital expenditures within
investing activities, are now reflected in the accompanying consolidated statement of cash flows as a

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

6. ROTABLE ASSETS (Continued)

component of operating activities. This change resulted in no impact to previously reported income
from operations, net income or earnings per share.

7. PROPERTY AND EQUIPMENT

Net property and equipment at March 31, 2009 and 2008 is:

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . .
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . .

March 31,

2009

2008

$ 18,052
133,055
402,485

553,592
221,125

$ 17,802
128,038
357,021

502,861
191,428

$332,467

$311,433

Depreciation expense for the fiscal years ended March 31, 2009, 2008 and 2007 was $36,836,

$32,779 and $26,947, respectively, which includes depreciation of assets under capital lease.

8. GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a summary of the changes in the carrying value of goodwill by reportable segment,

for the fiscal years ended March 31, 2009 and March 31, 2008:

Aerospace
Systems

Aftermarket
Services

Total

Fiscal 2009
Balance at beginning of year . . . . . . . . . . . . . . . .
Goodwill recognized in connection with

acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase price allocation adjustments . . . . . . . . . .
Effect of exchange rate changes and other . . . . . .

$330,175

$53,565

$383,740

73,260
3,518
(971)

—
—
(6)

73,260
3,518
(977)

Balance at end of year . . . . . . . . . . . . . . . . . . . .

$405,982

$53,559

$459,541

Fiscal 2008
Balance at beginning of year . . . . . . . . . . . . . . . .
Goodwill recognized in connection with

acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase price allocation adjustments . . . . . . . . . .
Effect of exchange rate changes and other . . . . . .

$285,797

$54,133

$339,930

44,488
(1,103)
993

—
(568)
—

44,488
(1,671)
993

Balance at end of year . . . . . . . . . . . . . . . . . . . .

$330,175

$53,565

$383,740

Intangible assets, cost and accumulated amortization at March 31, 2009 were $171,558 and $63,208,
respectively. Intangible assets, cost and accumulated amortization at March 31, 2008 were $129,920 and

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

8. GOODWILL AND OTHER INTANGIBLE ASSETS (Continued)

$51,432, respectively. Intangible assets consist of two major classes: (i) product rights and licenses,
which at March 31, 2009 had a weighted-average life of 11.3 years, and (ii) noncompete agreements,
customer relationships and other, which at March 31, 2009 had a weighted-average life of 10.1 years.
Gross cost and accumulated amortization of product rights and licenses at March 31, 2009 were $74,082
and $45,079 respectively, and at March 31, 2008 were $74,082 and $38,087, respectively. Gross cost and
accumulated amortization of noncompete agreements, customer relationships and other at March 31,
2009 were $97,476 and $18,129, respectively, and at March 31, 2008 were $55,838 and $13,345,
respectively. Amortization expense for the fiscal years ended March 31, 2009, 2008, and 2007 was
$11,775, $10,436 and $8,756, respectively. Amortization expense for the five fiscal years succeeding
March 31, 2009 by year is expected to be as follows: 2010: $16,612; 2011: $14,827; 2012: $13,330; 2013:
$13,145; 2014: $12,139 and thereafter: $38,327.

Effective February 9, 2007, the Company, through its Triumph Air Repair subsidiary, included in

the Aftermarket Services segment, entered into a software licensing agreement with Honeywell
Intellectual Properties, Inc. (‘‘Honeywell’’). The agreement grants Triumph a non-exclusive, limited
license to access Honeywell proprietary commercial service manuals identified for use on the Boeing
331-250[G] APU installed on the United States Air Force C-17 aircraft. The license expires on
September 30, 2013. As consideration, the Company agreed to pay $5,000 inclusive of imputed interest
of $529, of which $700, $700 and $1,500 was paid during fiscal years 2009, 2008 and 2007, respectively.
At March 31, 2009, the remaining payable to Honeywell of $1,671 is included in the consolidated
balance sheet in accrued expenses and deferred income taxes and other in the amounts of $592 and
$1,079, respectively. As a result of the agreement, the Company recorded an intangible asset in the
amount of $4,471, which is included in product rights and licenses intangible assets, with a life of
6.7 years. The Company amortized to expense $502, $671 and $112 of this intangible during fiscal years
2009, 2008 and 2007, respectively.

Effective January 1, 2005, the Company, through its Triumph Gear Systems—Macomb subsidiary,
included in the Aerospace Systems segment, entered into an exclusive agreement with General Electric
(‘‘GE’’) to provide the inlet gearbox as well as specific related spare parts for the CFM56 engine
program for the life of the program. The Boeing 737 and the Airbus A318, A319, A320, A321 and
A340-200/-300 aircraft are the primary platforms for the CFM56 engine. As consideration, the
Company agreed to pay an amount of $32,158 for the exclusive right to use certain propriety
technology owned by GE, of which $2,572, $10,200, $14,232 and $5,154 was paid during fiscal 2008,
2007, 2006 and fiscal 2005, respectively. As a result of the agreement, the Company recorded an
intangible asset in the amount of $32,158, which is included in product rights and licenses intangible
assets, with a weighted-average life of 12.1 years. The Company amortized to expense $2,810, $2,814
and $2,816 of this intangible asset during fiscal 2009, 2008 and 2007, respectively.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

9. ACCRUED EXPENSES

Accrued expenses are composed of the following items:

Accrued compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Warranty reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 38,592
23,317
5,956
41,715

$39,098
6,795
4,165
33,339

Total accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$109,580

$83,397

March 31,

2009

2008

Deferred revenue increased significantly in fiscal 2009 as a result of the acquisition of Merritt,

which received an advance payment on one of its major contracts.

10. LEASES

At March 31, 2009, future minimum payments under noncancelable operating leases with initial or

remaining terms of more than one year were as follows: 2010—$12,630; 2011—$11,761; 2012—$8,795;
2013—$6,432; 2014—$5,575 thereafter—$16,230 through 2022. In the normal course of business,
operating leases may contain residual value guarantees and purchase options are generally renewed or
replaced by other leases.

At March 31, 2009, future minimum sublease rentals are as follows: 2010—$654; 2011—$669;

2012—$685; 2013—$618; 2014—$547; thereafter—$1,992 through 2018.

Total rental expense was $14,441, $14,725 and $13,151 for the fiscal years ended March 31, 2009,

2008 and 2007, respectively.

11. LONG-TERM DEBT

Long-term debt consists of the following:

Convertible senior subordinated notes . . . . . . . . . . . . . . . . . .
Revolving credit facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivable securitization facility . . . . . . . . . . . . . . . . . . . . . . .
Equipment leasing facility . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subordinated promissory notes . . . . . . . . . . . . . . . . . . . . . . .
Other debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2009

2008

$183,250
127,730
75,000
58,734
16,575
14,015

475,304
89,085

$201,250
193,750
—
—
13,000
11,813

419,813
1,010

$386,219

$418,803

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

11. LONG-TERM DEBT (Continued)

Credit Facility

On July 10, 2008, the Company amended its existing amended and restated credit agreement (the

‘‘Credit Facility’’) with its lenders, primarily to allow for an asset securitization facility of up to $125,000
and to amend certain other terms and covenants. Coincident with the amendment, the Company
exercised a provision of the Credit Facility to increase the amount available under the Credit Facility to
$370,000 from $350,000. The Credit Facility bears interest at either: (i) LIBOR plus between 0.625%
and 2.00%; (ii) the prime rate; or (iii) an overnight rate at the option of the Company. The applicable
interest rate is based upon the Company’s ratio of total indebtedness to earnings before interest, taxes,
depreciation and amortization. In addition, the Company is required to pay a commitment fee of
between 0.175% and 0.400% on the unused portion of the Credit Facility.

On December 22, 2006, the Company amended the Credit Facility with its lenders primarily to

eliminate a financial covenant restricting aggregate capital expenditures to 200% of consolidated
depreciation expense in any fiscal year. The Company’s obligations under the Credit Facility are
guaranteed by the Company’s subsidiaries. On October 20, 2006, the Company amended the Credit
Facility with its lenders to increase the Credit Facility to $350,000 from $250,000, extend the maturity
date to June 30, 2011 and amend certain other terms and covenants.

At March 31, 2009, there were $127,730 in borrowings and $5,600 in letters of credit outstanding
under the Credit Facility. At March 31, 2008, there were $193,750 in borrowings and $5,941 in letters
of credit outstanding under the Credit Facility. The level of unused borrowing capacity under the
Credit Facility varies from time to time depending in part upon its compliance with financial and other
covenants set forth in the related agreement. The Credit Facility contains certain affirmative and
negative covenants including limitations on specified levels of indebtedness to earnings before interest,
taxes, depreciation and amortization, and interest coverage requirements, and includes limitations on,
among other things, liens, mergers, consolidations, sales of assets, and incurrence of debt. The
Company is currently in compliance with all such covenants. As of March 31, 2009, the Company had
borrowing capacity under the Credit Facility of $236,670 after reductions for borrowings and letters of
credit outstanding under the Credit Facility.

Convertible Senior Subordinated Notes

On September 18, 2006, the Company issued $201,250 in convertible senior subordinated notes

(the ‘‘Notes’’). The Notes are direct, unsecured, senior subordinated obligations of the Company, and
rank (i) junior in right of payment to all of the Company’s existing and future senior indebtedness,
(ii) equal in right of payment with any other future senior subordinated indebtedness, and (iii) senior in
right of payment to all subordinated indebtedness.

The Company received net proceeds from the sale of the Notes of approximately $194,998 after
deducting debt issuance costs of approximately $6,252. The use of the net proceeds from the sale was
for prepayment of the Company’s outstanding Senior Notes, including a ‘‘make-whole’’ premium, fees
and expenses in connection with the prepayment, and to repay a portion of the outstanding
indebtedness under the Company’s Credit Facility. The debt issuance costs have been recorded as other

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

11. LONG-TERM DEBT (Continued)

assets in the accompanying consolidated balance sheets. Debt issuance costs are being amortized over a
period of five years.

The Notes bear interest at a fixed rate of 2.625% per annum, payable in cash semiannually in
arrears on each April 1 and October 1 beginning April 1, 2007. During the period commencing on
October 6, 2011 and ending on, but excluding, April 1, 2012 and each six-month period from October 1
to March 31 or from April 1 to September 30 thereafter, the Company will pay contingent interest
during the applicable interest period if the average trading price of a Note for the five consecutive
trading days ending on the third trading day immediately preceding the first day of the relevant
six-month period equals or exceeds 120% of the principal amount of the Notes. The contingent interest
payable per Note in respect of any six-month period will equal 0.25% per annum calculated on the
average trading price of a Note for the relevant five trading day period. This contingent interest feature
represents an embedded derivative. Since it is in the control of the Company to call the Notes at any
time after October 6, 2011, the value of the derivative was determined to be de minimis. Accordingly,
no value has been assigned at issuance or at March 31, 2009.

During fiscal 2009, the Company paid $15,420 to purchase $18,000 of principal on the Notes,

resulting in a gain on early extinguishment of $2,580.

A holder may surrender its Notes for conversion: (i) during any fiscal quarter if the last reported

sale price of the Company’s common stock for at least 20 trading days during the period of 30
consecutive trading days ending on the last trading day of the previous fiscal quarter is more than
130% of the applicable conversion price per share of the Company’s common stock on such trading
day; (ii) during the five business days immediately following any five consecutive trading-day period in
which the trading price per $1,000 principal amount of a Note for each day of that period was less than
98% of the product of the closing price of the Company’s common stock and the conversion rate of the
Notes on each such day; (iii) if the Company has called the Notes for redemption; (iv) on the
occurrence of a specified corporate transaction as provided in the indenture governing the Notes
(i.e., change in control, distribution of rights or warrants to purchase common stock below market

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

11. LONG-TERM DEBT (Continued)

value, distribution of assets (including cash) with a per share value exceeding 10% of the market value
of common stock); or (v) during the two-month period prior to maturity (starting August 1, 2026). The
last reported sale price of the Company’s common stock on any date means the closing sales price per
share on such date as reported by the New York Stock Exchange.

For the periods from October 1, 2007 through December 31, 2007 and January 1, 2008 through
March 31, 2008, the Notes were eligible for conversion; however, during this period, none of the Notes
were converted. The Company has classified the Notes as long-term as of March 31, 2009.

To be included in the calculation of diluted earnings per share, the average price of the Company’s

common stock for the fiscal year must exceed the conversion price per share of $54.45. The average
price of the Company’s common stock for the fiscal year ended March 31, 2009 was $46.49. Therefore,
no additional shares were included in the diluted earnings per share calculation. The average price of
the Company’s common stock for the fiscal year ended March 31, 2008 was $68.95. Therefore, 777,059
additional shares were included in the diluted earnings per share calculation. No additional shares were
included in the diluted earnings per share calculation for the fiscal year ended March 31, 2007 since
the average price of the Company’s stock did not exceed the conversion price.

If the Company undergoes a fundamental change, holders of the Notes will have the right, subject
to certain conditions, to require the Company to repurchase for cash all or a portion of its Notes at a
repurchase price equal to 100% of the principal amount of the Notes to be repurchased plus accrued
and unpaid interest, including contingent interest and additional amounts, if any.

Receivable Securitization Program

In August 2008, the Company entered into a receivable securitization facility (the ‘‘Securitization

Facility’’). In connection with the Securitization Facility, the Company sells on a revolving basis certain
accounts receivable to Triumph Receivables, LLC, a wholly-owned special-purpose entity, which in turn
sells a percentage ownership interest in the receivables to commercial paper conduits sponsored by
financial institutions. The Company is the servicer of the accounts receivable under the Securitization
Facility. As of March 31, 2009, the maximum amount available under the Securitization Facility was
$125,000. The Securitization Facility is due to expire in August 2009 and is subject to annual renewal
through August 2013. Interest rates are based on prevailing market rates for short-term commercial
paper plus a program fee and a commitment fee. The program fee is 35 basis points on the amount
outstanding under the Securitization Facility. Additionally, the commitment fee is 30 basis points on
102% of the maximum amount available under the Securitization Facility. At March 31, 2009, there was
$75,000 outstanding under the Securitization Facility. In connection with entering into the Securitization
Facility, the Company incurred approximately $823 of costs, which were deferred and are being
amortized over the life of the Securitization Facility. The Company securitizes its accounts receivable,
which are generally non-interest bearing, in transactions that are accounted for as borrowings under
SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities.

The agreement governing the Securitization Facility contains restrictions and covenants which
include limitations on the making of certain restricted payments, creation of certain liens, and certain
corporate acts such as mergers, consolidations and the sale of substantially all assets.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

11. LONG-TERM DEBT (Continued)

Equipment Leasing Facility

During March 2009, the Company entered into a 7-year Master Lease Agreement (‘‘Leasing
Facility’’) creating a capital lease of certain existing property and equipment, resulting in net proceeds
of $58,546 after deducting debt issuance costs of approximately $188. The net proceeds from the
Leasing Facility were used to repay a portion of the outstanding indebtedness under the Company’s
Credit Facility. The debt issuance costs have been recorded as other assets in the accompanying
consolidated balance sheets and are being amortized over the term of the Leasing Facility. The Leasing
Facility bears interest at a weighted-average fixed rate of 6.1% per annum.

Prepayment of Senior Notes

On October 4, 2006, the Company prepaid all of its outstanding Class A Senior Notes and Class B
Senior Notes (collectively, the ‘‘Senior Notes’’) and, accordingly, the rights of the holders of the Senior
Notes under the Note Purchase Agreement, dated November 21, 2002, between the Company and such
holders, as amended, ceased. The Senior Notes were prepaid with the proceeds from the Company’s
sale of the Notes as discussed above. Immediately prior to prepayment, $68,375 aggregate principal
amount of Class A Senior Notes, which carried a fixed rate of interest of 6.06%, were outstanding, and
$56,049 aggregate amount of Class B Senior Notes, which carried a fixed rate of interest of 5.59%,
were outstanding. If the Company had not prepaid the outstanding Senior Notes, they would have
matured on December 2, 2012, subject to a requirement under the Note Purchase Agreement that the
Company annually prepay $8,007 of the outstanding Class B Senior Notes starting on December 2,
2006. The Senior Notes were senior unsecured obligations of the Company and ranked junior in right
of payment to the rights of the Company’s secured creditors to the extent of their security in the
Company’s assets, equal in right of payment to the rights of creditors under the Company’s other
existing and future unsecured unsubordinated obligations, senior in right of payment to the rights of
creditors under obligations expressly subordinated to the Senior Notes, and effectively subordinated to
secured and unsecured creditors of the Company’s subsidiaries. The prepayment was made upon proper
notice to the holders of the Senior Notes at a price equal to 100% of the principal amount of the
outstanding Senior Notes being prepaid, plus accrued and unpaid interest of approximately $2,466, plus
a ‘‘make whole’’ premium of approximately $4,395 based on the value of the remaining scheduled
interest payments on the Senior Notes being prepaid. The Company expensed the ‘‘make whole’’
premium of $4,395 as well as unamortized debt issuance costs related to the Senior Notes of $693 in
the third quarter of fiscal 2007.

The indentures under the debt agreements and the Credit Facility described above contain
restrictions and covenants which include limitations on the Company’s ability to incur additional
indebtedness, issue stock options or warrants, make certain restricted payments and acquisitions, create
liens, enter into transactions with affiliates, sell substantial portions of its assets and pay cash dividends.
Additional covenants require compliance with financial tests, including leverage and interest coverage
ratio.

The Company’s long-term debt portfolio consists of fixed-rate and variable-rate instruments and is
managed to reduce the overall cost of borrowing and to mitigate fluctuations in interest rates. Interest
rate fluctuations result in changes in the market value of the Company’s fixed-rate debt. The fair values
of the Company’s Notes are determined using discounted cash flows based upon the Company’s

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

11. LONG-TERM DEBT (Continued)

estimated current cost for similar types of borrowings or current market value. The fair value of the
Notes was $174,546 and $247,874 as of March 31, 2009 and March 31, 2008, respectively. The carrying
value of other long-term debt and notes payable approximate their fair market values as of March 31,
2009 and March 31, 2008, respectively.

Interest paid on indebtedness during the years ended March 31, 2009, 2008 and 2007 amounted to

$13,352, $14,512 and $16,880, respectively.

As of March 31, 2009, the maturities of long-term debt are as follows: 2010—$89,085; 2011—

$14,734; 2012—$325,085; 2013—$8,852; 2014—$9,036; thereafter—$28,512 through 2026.

12. INCOME TAXES

The components of income tax expense are as follows:

Current:

Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$27,547
2,791

$25,870
1,530

$18,582
1,338

Year ended March 31,

2009

2008

2007

Deferred:

Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30,338

27,400

19,920

14,308
940

15,248

9,498
263

9,761

5,688
521

6,209

$45,586

$37,161

$26,129

Income tax expense for the Company’s foreign operations, which is included in the above amounts,

for fiscal years 2009, 2008 and 2007 was $1,100, $855 and $1,289, respectively.

A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows:

Statutory federal income tax rate . . . . . . . . . . . . . . . . . . . . . . . .
State and local income taxes, net of federal tax benefit . . . . . . . .
Miscellaneous permanent items and nondeductible accruals . . . .
Research and development tax credit . . . . . . . . . . . . . . . . . . . . .
Foreign tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ETI domestic/exclusion production tax benefits . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended
March 31,

2009

2008

2007

35.0% 35.0% 35.0%
1.5
1.3
1.3
0.1
0.2
0.9
(2.2)
(2.0)
(1.8)
(1.4) — —
(2.3)
(1.3)
(1.3)
1.6
(0.5)
(0.5)

Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31.8% 32.9% 33.9%

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

12. INCOME TAXES (Continued)

The components of deferred tax assets and liabilities are as follows:

March 31,

2009

2008

Deferred tax assets:

Net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . .
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accruals and reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,014
2,263
9,515
4,898

$ 4,539
1,989
7,737
1,739

Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20,690
(351)

16,004
(1,374)

Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20,339

14,630

Deferred tax liabilities:

Property and equipment
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill and other intangible assets . . . . . . . . . . . . . . . . . . .
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . .

50,982
53,100
8,396
9,252

121,730

39,927
45,278
6,684
6,094

97,983

Net deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$101,391

$83,353

As of March 31, 2009, the Company has federal and state net operating loss carryforwards of

$63,206 expiring in various years through 2029.

Net income taxes paid during the fiscal years ended March 31, 2009, 2008 and 2007 were $28,094,

$21,740 and $19,351, respectively. The Company also has a foreign net operating loss carryforward of
$1,169 for which a valuation allowance has been established. The net change in total valuation
allowance for fiscal 2009 was a decrease of $1,023.

Effective April 1, 2007, the Company adopted FIN 48, Accounting for Uncertainty in Income Taxes.

The cumulative effect of adoption of FIN 48 has been recorded as a charge of $291 to retained
earnings, an increase of $66 to net deferred income tax liabilities and an increase of $225 to income
taxes payable as of April 1, 2007.

In conjunction with the adoption of FIN 48, the Company has classified uncertain tax positions as

non-current income tax liabilities unless expected to be paid in one year. Penalties and tax-related
interest expense are reported as a component of income tax expense. As of March 31, 2009 and 2008,
and upon adoption of FIN 48 on April 1, 2007, the total amount of accrued income tax-related interest
and penalties was $427, $433 and $254, respectively.

As of March 31, 2009 and 2008, and April 1, 2007, the total amount of unrecognized tax benefits

was $3,211, $2,950 and $2,534, respectively, of which $3,188, $2,698 and $2,181, respectively, would
impact the effective rate, if recognized. The Company anticipates that total unrecognized tax benefits
may be reduced by $685 due to the expiration of statutes of limitation for various federal tax issues in
the next 12 months.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

12. INCOME TAXES (Continued)

As of March 31, 2009, the Company was subject to examination in state jurisdictions for the fiscal

years ended March 31, 2005 through March 31, 2007, none of which the Company believes is
individually material. The Company has filed appeals in a state jurisdiction related to fiscal years ended
March 31, 1999 through March 31, 2005. The Company believes appropriate provisions for all
outstanding issues have been made for all jurisdictions and all open years.

With few exceptions, the Company is no longer subject to U.S. federal income tax examinations for

fiscal years ended before March 31, 2006, state or local examinations for fiscal years ended before
March 31, 2005, or foreign income tax examinations by tax authorities for fiscal years ended before
March 31, 2007.

From the FIN 48 adoption date of April 1, 2007 and during the fiscal years ended March 31, 2009

and 2008, the Company added $490 and $517 of tax, interest and penalties related to activity for
identified uncertain tax positions, respectively.

A reconciliation of the liability for uncertain tax positions for the fiscal years ended March 31,

2008 and 2009 follows:

Opening Balance—April 1, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions for tax positions related to the current year . . . . . . . . . . . . . . . .
Additions for tax positions of prior years . . . . . . . . . . . . . . . . . . . . . . . . . .
Reductions for tax positions of prior years . . . . . . . . . . . . . . . . . . . . . . . .
Reductions as a result of a lapse of statute of limitations . . . . . . . . . . . . . .
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ending Balance—March 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions for tax positions related to the current year . . . . . . . . . . . . . . . .
Additions for tax positions of prior years . . . . . . . . . . . . . . . . . . . . . . . . . .
Reductions for tax positions of prior years . . . . . . . . . . . . . . . . . . . . . . . .
Reductions as a result of a lapse of statute of limitations . . . . . . . . . . . . . .
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2,279
329
87
(178)
—
—

2,517
497
940
(4)
(1,014)
—

Ending Balance—March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2,936

13. STOCKHOLDERS’ EQUITY

During February 2008, the Company exercised existing authority to make stock repurchases and
repurchased 220,000 shares of its outstanding shares under the program for an aggregate consideration
of $12,342, funded by borrowings under the Company’s Credit Facility. In February 2008, the
Company’s Board of Directors then authorized an increase in the Company’s existing stock repurchase
program by up to an additional 500,000 shares of its common stock. As a result, as of May 15, 2009,
the Company remains able to purchase an additional 500,800 shares. Repurchases may be made from
time to time in open market transactions, block purchases, privately negotiated transactions or
otherwise at prevailing prices. No time limit has been set for completion of the program.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

13. STOCKHOLDERS’ EQUITY (Continued)

During fiscal 2007, the Company filed a registration statement with the SEC to register shares of

Common Stock issuable by the Company upon conversion (the ‘‘Conversion Shares’’) of the Company’s
issued and outstanding Notes. The Company cannot determine the number of Conversion Shares it will
issue upon conversion of the Notes, if any. The Notes are further discussed in Note 11.

The holders of the common stock are entitled to one vote per share on all matters to be voted

upon by the stockholders of Triumph.

The Company has preferred stock of $.01 par value, 250,000 shares authorized. At March 31, 2009

and 2008, no shares of preferred stock were outstanding.

Prior to August 2008, the Company had Class D common stock of $.001 par value, 6,000,000
shares authorized. At March 31, 2008, no shares of Class D common stock were outstanding. The
Class D common stock was eliminated upon the amendment and restatement of the Company’s
Certificate of Incorporation effective August 12, 2008.

14. EARNINGS PER SHARE

The following is a reconciliation between the weighted-average common shares outstanding used in

the calculation of basic and diluted earnings per share:

Weighted-average common shares outstanding—basic . . . .
Net effect of dilutive stock options and nonvested stock . .
. . . . . . . . . . . . . . . . . . .
Net effect of convertible debt

16,384
200
—

(thousands)
16,497
266
777

16,220
193
—

Weighted-average common shares outstanding—diluted . .

16,584

17,540

16,413

Year ended March 31,

2009

2008

2007

15. EMPLOYEE BENEFIT PLANS

Defined Contribution Pension Plan

The Company sponsors a defined contribution 401(k) plan, under which salaried and certain
hourly employees may defer a portion of their compensation. Eligible participants may contribute to
the plan up to the allowable amount as determined by the plan of their regular compensation before
taxes. The Company generally matches contributions at 50% of the first 6% of compensation
contributed by the participant. All contributions and Company matches are invested at the direction of
the employee in one or more mutual funds. Company matching contributions vest immediately and
aggregated $5,648, $5,309 and $4,006 for the fiscal years ended March 31, 2009, 2008 and 2007,
respectively.

Defined Benefit Pension Plans

The Company has several defined benefit pension plans covering eligible employees. U.S. plans

covering union employees generally provide benefit payments of stated amounts for each year of

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

15. EMPLOYEE BENEFIT PLANS (Continued)

service. The Company also sponsors an unfunded supplemental executive retirement plan (‘‘SERP’’)
that provides retirement benefits to certain key employees.

On March 31, 2007, the Company adopted the recognition and disclosure provisions of SFAS
No. 158. SFAS No. 158 required the Company to recognize the funded status (i.e., the difference
between the fair value of plan assets and the projected benefit obligations) of the Company’s pension
plans and SERP plan as of March 31, 2007 in its Consolidated Balance Sheet, with a corresponding
adjustment to accumulated other comprehensive income (loss), net of tax. The adjustment to
accumulated other comprehensive income (loss) at adoption represents the net unrecognized actuarial
gains (losses), unrecognized prior service costs and unrecognized transition obligation remaining from
the initial adoption of SFAS No. 87, all of which were previously netted against the plan’s funded status
in the Company’s Consolidated Balance Sheet. These amounts will be subsequently recognized as net
periodic benefit cost. Further, actuarial gains and losses that arise in subsequent periods and are not
recognized as net periodic benefit cost in the same periods will be recognized as a component of
accumulated other comprehensive income (loss). Those amounts will be subsequently recognized as a
component of net periodic benefit cost on the same basis as the amounts recognized in accumulated
other comprehensive income (loss) at adoption of SFAS No. 158.

The effects of adopting the provisions of SFAS No. 158 at March 31, 2007 resulted in an increase

in total liabilities of $2,561 and a reduction of total stockholders’ equity of $1,613. The adoption of
SFAS No. 158 had no effect on the Company’s consolidated statement of income for the fiscal year
ended March 31, 2007, or for any prior periods presently and will not affect the Company’s
consolidated statement of income in future periods.

SFAS No. 158 also includes a requirement to measure plan assets and benefit obligations as of the

date of the Company’s fiscal year-end statement of financial position. The requirement is effective for
fiscal years ending after December 15, 2008, and shall not be applied retrospectively. The Company
adopted the measurement provisions of SFAS No. 158 on March 31, 2009. Only the Company’s union
plans are affected by the measurement provisions of SFAS No. 158 since the union plans have a
December 31 measurement date. The net periodic benefit cost for the period between December 31,
2008 and March 31, 2009 of approximately $27 was recognized, net of tax, during the fiscal year ended
March 31, 2009.

Included in accumulated other comprehensive income at March 31, 2009, are the following
amounts that have not yet been recognized in net periodic pension cost: unrecognized prior service
costs of $564 ($356 net of tax) and unrecognized actuarial losses of $3,020 ($1,902 net of tax). The
prior service cost and actuarial loss included in other comprehensive income and expected to be
recognized in net periodic pension cost during the fiscal year ended March 31, 2010 is $317 ($200 net
of tax) and $138 ($87 net of tax), respectively.

The following table sets forth the Company’s consolidated defined benefit pension plans for its
union employees as of March 31, 2009 and December 31, 2007 and its SERP as of March 31, 2009 and
2008, and the amounts recorded in the consolidated balance sheets at March 31, 2009 and 2008.
Company contributions include amounts contributed directly to plan assets and indirectly as benefits

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

15. EMPLOYEE BENEFIT PLANS (Continued)

are paid from the Company’s assets. Benefit payments reflect the total benefits paid from the plans and
the Company’s assets. Information on the plans includes both the qualified and nonqualified plans.

Change in projected benefit obligations
Projected benefit obligation at beginning of year . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Curtailment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2009

2008

$10,549
17
670
(741)
—
(347)

$12,562
91
608
319
(451)
(2,580)

Projected benefit obligation at end of year . . . . . . . . . . . . . . . . .

$10,148

$10,549

Weighted-average assumptions used to determine benefit

obligations at end of year

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate of compensation increase . . . . . . . . . . . . . . . . . . . . . . . . .
Change in plan assets
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Company contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.25% 6.25%
N/A

N/A

$ 6,596
(1,757)
(213)
342
(348)

$ 6,206
426
(155)
2,699
(2,580)

Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . .

$ 4,620

$ 6,596

Funded status (underfunded)
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (5,528) $ (3,953)

Amounts recognized in the consolidated balance sheet consist of
Accrued expenses—current liability . . . . . . . . . . . . . . . . . . . . . .
Pension obligation—noncurrent liability . . . . . . . . . . . . . . . . . . .
Pension asset—current asset . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (3,123) $ (3,003)
(1,102)
152

(2,405)
—

Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (5,528) $ (3,953)

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

15. EMPLOYEE BENEFIT PLANS (Continued)

The components of net periodic pension cost for fiscal years 2009, 2008 and 2007 are as follows:

Year Ended March 31,

2009

2008

2007

Components of net periodic pension cost
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service cost
. . . . . . . . . . . . . . . . . . .
Amortization of net loss . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 82
670
(512)
519
84

$ 171
608
(489)
518
104

$ 260
677
(433)
482
199

Total net periodic pension cost . . . . . . . . . . . . . . . . . . . . . .

$ 843

$ 912

$1,185

Weighted-average assumptions Used to determine net

periodic pension cost

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected long-term rate on assets . . . . . . . . . . . . . . . . . . .
Rate of compensation increase . . . . . . . . . . . . . . . . . . . . . .

6.25% 6.00% 5.75%
8.00% 8.00% 8.00%
N/A

N/A

Expected Pension Benefit Payments

Benefit payments for pensions (including the SERP), which reflect expected future service, as

appropriate, are expected to be as follows:

Year

2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015-2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount

$3,437
523
377
402
443
2,683

The table below sets forth the Company’s target asset allocation for fiscal 2010 and the actual asset

allocations at March 31, 2009 and 2008.

Asset Category

Actual Allocation

Target Allocation

March 31,

Fiscal 2010

2009

2008

Equity securities . . . . . . . . . . . . . . . . . . . . . . .
Fixed income securities . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40-65%
25-40%
0-10%

Total

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

57%
42
1

62%
37
1

100% 100%

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

15. EMPLOYEE BENEFIT PLANS (Continued)

Investment Policy and Strategy

The policy, as established by the benefits committee (‘‘Committee’’), is to provide for growth of
capital with a moderate level of volatility by investing assets per the target allocations stated above. The
assets will be reallocated periodically, but in no event less than every six months, to meet the above
target allocations. The investment policy will be reviewed on a regular basis, in conjunction with an
investment advisor, to determine if the policy should be changed.

Determination of Expected Long-Term Rate of Return

The expected long-term rate of return for the plans’ total assets is based on the expected return of

each of the above categories, weighted based on the median of the target allocation for each class.
Equity securities are expected to return 10% to 11% over the long-term, while cash and fixed income is
expected to return between 4% to 6%. Based on historical experience, the Committee expects that the
plans’ asset managers will provide a modest (0.5% to 1.0% per annum) premium to their respective
market benchmark indices.

Anticipated Contributions to Defined Benefit Plans

Assuming a normal retirement age of 65, the Company expects to contribute approximately $3,451

to its pension plans during fiscal 2010.

16. STOCK COMPENSATION PLANS

The Company has stock incentive plans under which employees and non-employee directors may

be granted options to purchase shares of the Company’s common stock at the fair value at the time of
the grant. Employee options and non-employee director options generally vest over three to four years
and expire ten years from the date of the grant. Compensation expense recognized for all option grants
is net of estimated forfeitures and is recognized over the awards’ respective requisite service periods.
There were no employee or non-employee director options granted during fiscal 2009 or 2008. The fair
values relating to prior option grants were estimated using a Black-Scholes option pricing model.
Expected volatilities are based on historical volatility of the Company’s stock and other factors, such as
implied market volatility. We used historical exercise data based on the age at grant of the option
holder to estimate the options’ expected term, which represents the period of time that the options
granted are expected to be outstanding. The Company anticipated the future option holding periods to
be similar to the historical option holding periods. The risk-free rate for periods within the contractual
life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The Company
recognizes compensation expense for the fair values of these awards on a straight-line basis over the
requisite service period of these awards.

In April 2005, the Compensation and Management Development Committee approved the
granting of restricted stock to several of its senior executives and employees, the number of shares of
which was to be determined based upon the Company’s financial performance during fiscal 2006. Also
on the same date, the Compensation and Management Development Committee granted to the same
group of executives and employees options to purchase 113,750 shares of the Company’s common stock
at an exercise price of $30.74 per share. In April 2006, 54,898 restricted shares were awarded following

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

16. STOCK COMPENSATION PLANS (Continued)

the determination of net earnings per share for fiscal 2006. The restricted shares are subject to
forfeiture should the grantee’s employment be terminated prior to the fourth anniversary of the date of
grant, and are included in capital in excess of par value.

Restricted shares generally vest in full after four years. The fair value of restricted shares under
the Company’s restricted stock plans is determined by the product of the number of shares granted and
the grant date market price of the Company’s common stock. The fair value of restricted shares is
expensed on a straight-line basis over the requisite service period of four years.

The Company recognized $3,180, $2,809 and $2,524 of share-based compensation expense during

the fiscal years ended March 31, 2009, 2008 and 2007, respectively. The total income tax benefit
recognized for share-based compensation arrangements for fiscal years ended March 31, 2009, 2008 and
2007 was $1,048, $937 and $808, respectively. Total share-based compensation expense was comprised
of stock option expense of $32, $453 and $595 and restricted stock expense of $3,148, $2,356 and
$1,929 for the fiscal years ended March 31, 2009, 2008 and 2007, respectively. The Company estimates
it will record share-based compensation expense of approximately $3,300 in fiscal 2010. This estimate
may be impacted by potential changes to the structure of the Company’s share-based compensation
plans which could impact the number of stock options granted in fiscal 2010, changes in valuation
assumptions, and changes in the market price of the Company’s common stock, among other things
and, as a result, the actual share-based compensation expense in fiscal 2010 may differ from the
Company’s current estimate.

A summary of the Company’s stock option activity and related information for its option plans for

the fiscal year ended March 31, 2009 was as follows:

Outstanding at March 31, 2008 . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . .

Weighted-
Average
Remaining
Contractual
Term

Aggregate
Intrinsic Value

Weighted-
Average
Exercise
Price

$34.95
—
$32.92
$43.29

Options

334,882
—
(37,333)
(5,500)

Outstanding at March 31, 2009 . . . . . . . . . . . .

292,049

$35.05

3.5 Years

Exercisable at March 31, 2009 . . . . . . . . . . . .

292,049

$35.05

3.5 Years

$3,340

As of March 31, 2009, all stock options are fully vested with no expected future compensation
expense related to them. The intrinsic value of stock options exercised during fiscal 2009 was $927.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

16. STOCK COMPENSATION PLANS (Continued)

At March 31, 2009 and 2008, 1,380,958 and 1,415,918 shares of common stock, respectively, were
available for issuance under the plans. A summary of the status of the Company’s nonvested shares as
of March 31, 2009 and changes during the fiscal year ended March 31, 2009, is presented below:

Nonvested at March 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

164,363
48,702
—
(8,242)

Nonvested at March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

204,823

Weighted-
Average Grant
Date Fair Value

$49.77
57.19
—
50.98

$51.49

Expected future compensation expense on restricted stock net of expected forfeitures, is

approximately $3,158, which is expected to be recognized over the remaining weighted-average vesting
period of 2.1 years.

In June 2007 and 2008, the Compensation and Management Development Committee of the
Board of Directors approved the granting of restricted stock to several of its senior executives and
employees, the number of shares of which was to be determined based upon the Company’s financial
performance during fiscal 2008 and 2009, respectively. In April 2008, 40,902 restricted shares were
granted following the determination of net earnings per share for fiscal 2008. In April 2009, 62,989
restricted shares were granted following the determination of net earnings per share for fiscal 2009.
Expected future compensation expenses on this April 2009 grant, net of expected forfeitures, is
approximately $1,932, which is expected to vest over the remaining vesting period of 3.0 years.

In July 2006, the Board of Directors approved the granting of deferred stock units to each of the

non-employee members of the Board of Directors under the Directors’ Plan. During the fiscal years
ended March 31, 2009 and 2008, 7,800 and 2,500 deferred stock units were granted to the
non-employee members of the Board of Directors, respectively. Each deferred stock unit represents the
contingent right to receive one share of the Company’s common stock. The deferred stock units vest
over a four-year period and the shares of common stock underlying vested deferred stock units will be
delivered on January 1 of the year following the year in which the non-employee director terminates
service as a Director of the Company.

17. COMMITMENTS AND CONTINGENCIES

Certain of the Company’s business operations and facilities are subject to a number of federal,
state, local and foreign environmental laws and regulations. Former owners generally indemnify the
Company for environmental liabilities related to the assets and businesses acquired which existed prior
to the acquisition dates. In the opinion of management, there are no significant environmental concerns
which would have a material effect on the financial condition or operating results of the Company
which are not covered by such indemnification.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

17. COMMITMENTS AND CONTINGENCIES (Continued)

In the ordinary course of our business, we are also involved in disputes, claims, lawsuits, and

governmental and regulatory inquiries that we deem to be immaterial. Some may involve claims or
potential claims of substantial damages, fines or penalties. While we cannot predict the outcome of any
pending or future litigation or proceeding and no assurances can be given, we do not believe that any
pending matter will have a material effect, individually or in the aggregate, on our financial position or
results of operations.

18. DERIVATIVES

Interest Rate Swap

The Company uses interest rate swaps, a derivative financial instrument, to manage interest costs
and minimize the effects of interest rate fluctuations on cash flows associated with its Credit Facility.
The Company does not use derivative financial instruments for trading or speculative purposes. While
interest rate swaps are subject to fluctuations in value, these fluctuations are generally offset by the
estimated fair value of the underlying exposures being hedged. The Company accounts for its interest
rate swaps in accordance with SFAS No. 133, Accounting for Derivative Instruments and Hedging
Activities, (‘‘SFAS 133’’), which requires that all derivatives be recorded on the consolidated balance
sheet at fair value. SFAS 133 also requires that changes in the fair value be recorded each period in
current earnings or other comprehensive income, depending on the effectiveness of hedge transaction.
Interest rate swaps are designated as cash flow hedges. Changes in the fair value of a cash flow hedge,
to the extent the hedge is effective, are recorded, net of tax, in other comprehensive income (loss), a
component of stockholders’ equity, until earnings are affected by the variability of the hedged cash
flows. Cash flow hedge ineffectiveness, defined as the extent that the changes in the fair value of the
derivative exceed the variability of cash flows of the forecasted transaction, is recorded currently in
earnings.

In March 2008, the Company entered into an interest rate swap agreement (the ‘‘Swap’’), maturing

June 2011 involving the receipt of floating rate amounts in exchange for fixed rate interest payments
over the life of the agreement, without exchange of the underlying principal amount. Under the Swap,
the Company receives interest equivalent to the one-month LIBOR and pays a fixed rate of interest of
2.925 percent with settlements occurring monthly. The objective of the hedge is to eliminate the
variability of cash flows in interest payments for $85,000 of floating rate debt. To maintain hedge
accounting for the Swap, the Company is committed to maintaining at least $85,000 in borrowings at an
interest rate based on one-month LIBOR, plus an applicable margin, through June 2011.

As of March 31, 2009, the total notional amount of the Company’s receive-variable/pay-fixed
interest rate swap was $85,000. For the year ended March 31, 2009, $566 of losses were reclassified into
earnings from accumulated other comprehensive income.

The fair value of the interest rate swap of $3,429 and $531 for the fiscal years ended March 31,

2009 and 2008, respectively, were included in Deferred income taxes and other.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

18. DERIVATIVES (Continued)

The effect of derivative instruments in the consolidated statements of income is as follows:

Reclassification Adjustment
Gain (Loss) Location
(Effective Portion)

Cash Flow Hedges

Interest rate

Amount of Gain (Loss) in OCI
(Effective Portion)
Year ended March 31,

Reclassification Adjustment
Gain (Loss) Amount
Year ended March 31,

2009

2008

2009

2008

$—

swap . . . . . . .

Interest expense and other

$(1,825)

$(335)

$(566)

The amount of ineffectiveness on the interest rate swap is not significant. The Company estimates
that approximately $1,888 of losses presently in accumulated other comprehensive income (loss) will be
reclassified into earnings during fiscal 2010.

During fiscal 2009, the Company entered into certain foreign currency derivative instruments that
did not meet hedge accounting criteria and primarily were intended to protect against exposure related
to fiscal 2009 acquisitions. The Company recognized a gain of $1,411 in fiscal 2009, which is included in
interest expense and other related to these instruments.

19. FAIR VALUE MEASUREMENTS

In September 2006, the FASB issued SFAS 157, Fair Value Measurements. This Statement defines

fair value, establishes a framework for measuring fair value under generally accepted accounting
principles and expands disclosures about fair value measurements. On April 1, 2008, the provisions of
SFAS 157 became effective for financial assets and financial liabilities of the Company.

SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer

a liability in an orderly transaction between market participants at the measurement date. SFAS 157
classifies the inputs used to measure fair value into the following hierarchy:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted
quoted prices for identical or similar assets or liabilities in markets that are not active, or
inputs other than quoted prices that are observable for the asset or liability

Level 3 Unobservable inputs for the asset or liability

The following table provides the liabilities reported at fair value in Deferred income tax and other

and measured on a recurring basis as of March 31, 2009:

Fair Value Measurements Using:

Quoted Prices
in Active
Markets for
Identical Assets

Significant
Other
Observable
Inputs

Significant
Unobservable
Inputs

Description

Total

(Level 1)

(Level 2)

(Level 3)

Interest rate swap, net of tax of $(1,269) . . . . . . . . .

$(2,160)

$—

$(2,160)

$—

The fair value of the interest rate swap contract is determined using observable current market

information as of the reporting date such as the prevailing LIBOR-based interest rate.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

20. CUSTOMER CONCENTRATION

Trade accounts receivable from The Boeing Company (‘‘Boeing’’) represented approximately 16%

and 17% of total accounts receivable as of March 31, 2009 and 2008, respectively. The Company had
no other significant concentrations of credit risk. Sales to Boeing for fiscal 2009 were $284,687, or 23%
of net sales, of which $240,494 and $44,193 were from the Aerospace Systems segment and the
Aftermarket Services segment, respectively. Sales to Boeing for fiscal 2008 were $259,516 or 23% of net
sales, of which $215,018 and $44,498 were from the Aerospace Systems segment and the Aftermarket
Services segment, respectively. Sales to Boeing for fiscal 2007 were $205,440, or 22% of net sales, of
which $172,829 and $32,611 were from the Aerospace Systems segment and the Aftermarket Services
segment, respectively. No other single customer accounted for more than 10% of the Company’s net
sales; however, the loss of any significant customer, including Boeing, could have a material adverse
effect on the Company and its operating subsidiaries.

The Company currently generates a majority of its revenue from clients in the commercial

aerospace industry, the military, and the regional airline industry. The Company’s growth and financial
results are largely dependent on continued demand for its products and services from clients in these
industries. If any of these industries experiences a downturn, clients in these sectors may conduct less
business with the Company.

21. COLLECTIVE BARGAINING AGREEMENTS

Approximately 11% of the Company’s labor force is covered under collective bargaining

agreements.

22. SEGMENTS

The Company is organized based on the products and services that it provides. Under this

organizational structure, the Company has two reportable segments: the Aerospace Systems Group and
the Aftermarket Services Group. The Company evaluates performance and allocates resources based on
operating income of each reportable segment. The accounting policies of the reportable segments are
the same as those described in the summary of significant accounting policies (see Note 2). Each
segment has a president and controller who manage their respective segment. The segment president
reports directly to the President and CEO of the Company, the Chief Operating Decision Maker
(‘‘CODM’’), as defined in SFAS No. 131, Disclosure about Segments of an Enterprise and Related
Information. The segment presidents maintain regular contact with the CODM to discuss operating
activities, financial results, forecasts and plans for the segment. The segment controllers have dual
reporting responsibilities, reporting to both their segment president as well as the Corporate Controller.
The Company’s CODM evaluates performance and allocates resources based upon review of segment
information. The CODM utilizes operating income as a primary measure of profitability.

The Aerospace Systems segment consists of 39 operating locations, and the Aftermarket Services

segment consists of 16 operating locations at March 31, 2009.

The Aerospace Systems segment consists of the Company’s operations which manufacture products

primarily for the aerospace OEM market. The segment’s operations design and engineer mechanical
and electromechanical controls, such as hydraulic systems, main engine gearbox assemblies,
accumulators and mechanical control cables. The segment’s revenues are also derived from stretch

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

22. SEGMENTS (Continued)

forming, die forming, milling, bonding, machining, welding and assembly and fabrication of various
structural components used in aircraft wings, fuselages and other significant assemblies. Further, the
segment’s operations also manufacture metallic and composite bonded honeycomb assemblies for floor
panels, fuselage, wings and flight control surface parts. These products are sold to various aerospace
OEMs on a global basis.

The Aftermarket Services segment consists of the Company’s operations that provide maintenance,

repair and overhaul services to both commercial and military markets on components and accessories
manufactured by third parties. Maintenance, repair and overhaul revenues are derived from services on
auxiliary power units, aircraft accessories, including constant-speed drives, cabin compressors, starters
and generators, and pneumatic drive units. In addition, the segment’s operations repair and overhaul
thrust reversers, nacelle components and other aerostructures. The segment’s operations also perform
repair and overhaul services, and supply spare parts, for various types of cockpit instruments and
gauges for a broad range of commercial airlines on a worldwide basis.

Segment operating income is total segment revenue reduced by operating expenses identifiable

with that segment. Corporate includes general corporate administrative costs and any other costs not
identifiable with one of the Company’s segments.

The Company does not accumulate net sales information by product or service or groups of similar

products and services, and therefore the Company does not disclose net sales by product or service
because to do so would be impracticable.

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

22. SEGMENTS (Continued)

Selected financial information for each reportable segment is as follows:

Year Ended March 31,

2009

2008

2007

Net sales:

Aerospace systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Aftermarket services . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Elimination of inter-segment sales . . . . . . . . . . . . . . . . . .

$ 988,359
254,638
(2,619)

$ 907,376
246,609
(2,895)

$743,742
196,526
(2,941)

$1,240,378

$1,151,090

$937,327

Income before income taxes:
Operating income (loss):

Aerospace systems . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Aftermarket services . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 168,006
10,876
(26,968)

$ 124,812
23,480
(21,967)

$101,867
11,384
(19,352)

Interest expense and other . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss on early extinguishment of debt . . . . . . . . . . .

Depreciation and amortization:

Aerospace systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Aftermarket services . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital expenditures:

151,914
11,096
(2,580)

126,325
13,422
—

93,899
11,706
5,088

$ 143,398

$ 112,903

$ 77,105

34,784
13,515
312

48,611

34,618
8,804
1,999

30,007
12,943
265

$ 26,080
9,394
229

43,215

$ 35,703

40,762
15,255
954

$ 39,220
15,573
299

45,421

56,971

$ 55,092

March 31,

2009

2008

Total Assets:

Aerospace systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Aftermarket services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,213,142
318,596
33,474
27,695

$1,034,294
321,757
34,021
24,763

$1,592,907

$1,414,835

TRIUMPH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share data)

22. SEGMENTS (Continued)

During fiscal years 2009, 2008 and 2007, the Company had foreign sales of $266,646, $237,043 and
$201,920, respectively. The Company reports as foreign sales those sales with delivery points outside of
the United States.

23. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Fiscal 2009

Fiscal 2008

June 30

Sept. 30

Dec. 31 Mar. 31

June 30

Sept. 30

Dec. 31 Mar. 31

BUSINESS SEGMENT SALES

Aerospace Systems . . . . . . . . . $258,232 $257,569 $222,751 $249,807 $217,280 $220,511 $213,025 $256,560
65,514
Aftermarket Services . . . . . . . .
(859)
Inter-segment Elimination . . . .

62,968
(644)

66,481
(659)

63,107
(615)

62,082
(701)

58,313
(589)

60,054
(793)

62,728
(654)

TOTAL SALES . . . . . . . . . . . $320,556 $323,391 $285,243 $311,188 $275,004 $279,772 $275,099 $321,215

GROSS PROFIT(1) . . . . . . . . . . $ 95,826 $ 94,573 $ 80,570 $ 89,162 $ 80,651 $ 78,917 $ 75,399 $ 89,228

OPERATING INCOME

Aerospace Systems . . . . . . . . . $ 46,070 $ 46,515 $ 34,269 $ 41,152 $ 30,329 $ 31,135 $ 26,095 $ 37,253
6,408
Aftermarket Services . . . . . . . .
(8,159)
Corporate . . . . . . . . . . . . . . .

6,519
(3,888)

4,825
(4,117)

1,874
(7,585)

2,219
(6,057)

5,728
(5,803)

3,887
(6,629)

2,896
(6,697)

TOTAL OPERATING INCOME . $ 43,328 $ 42,714 $ 30,431 $ 35,441 $ 30,254 $ 31,843 $ 28,726 $ 35,502

INCOME (LOSS) FROM

Continuing Operations . . . . . . . $ 26,034 $ 26,069 $ 21,946 $ 23,763 $ 17,811 $ 18,702 $ 17,923 $ 21,306
(1,896)
Discontinued Operations . . . . .

(1,631)

(3,894)

(1,203)

(1,472)

(1,206)

(1,093)

(818)

NET INCOME . . . . . . . . . . . . . $ 24,831 $ 24,976 $ 21,128 $ 22,132 $ 13,917 $ 17,230 $ 16,717 $ 19,410

Basic Earnings (Loss) per

Share(2)
Continuing Operations . . . . . . . $
Discontinued Operations . . . . .

1.59 $
(0.07)

1.34 $
(0.05)

1.45 $
(0.10)

1.08 $
(0.24)

1.13 $
(0.09)

1.08 $
(0.07)

1.30
(0.12)

Net Income . . . . . . . . . . . . . . $

1.52 $

1.29 $

1.35 $

0.85 $

1.04 $

1.01 $

1.18

Diluted Earnings (Loss) per

share(2)(3)
Continuing Operations . . . . . . . $
Discontinued Operations . . . . .

1.54 $
(0.07)

1.57 $
(0.07)

1.33 $
(0.05)

1.43 $
(0.10)

1.04 $
(0.23)

1.05 $
(0.08)

1.00 $
(0.07)

1.26
(0.11)

Net Income . . . . . . . . . . . . . . $

1.47 $

1.50 $

1.28 $

1.33 $

0.81 $

0.97 $

0.93 $

1.15

(1) Gross profit includes depreciation.

(2) The sum of the earnings for Continuing Operations and Discontinued Operations does not necessarily equal

the earnings for the quarter due to rounding.

(3) The sum of the diluted earnings per share for the four quarters does not necessarily equal the total year

diluted earnings per share due to the dilutive effect of the potential common shares related to the convertible
debt.

TRIUMPH GROUP, INC.

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
(Dollars in thousands)

Balance
at beginning of
year

Additions
charged to
expense

Additions(1)

(Deductions)(2)

Balance at
end of year

For year ended March 31, 2009:

Allowance for doubtful accounts

receivable . . . . . . . . . . . . . . . . .

$4,723

2,406

246

(1,734)

$5,641

For year ended March 31, 2008:

Allowance for doubtful accounts

receivable . . . . . . . . . . . . . . . . .

$3,857

1,687

130

(951)

$4,723

For year ended March 31, 2007:

Allowance for doubtful accounts

receivable . . . . . . . . . . . . . . . . .

$3,625

1,036

(827)

$3,857

(1) Additions consist of accounts receivable recoveries, miscellaneous adjustments and amounts

recorded in conjunction with the acquisitions of Merritt, Saygrove, KA, Mexmil, B & R, Allied,
Grand Prairie, Parker Hannifin’s United Aircraft Products Division and Triumph Gear
Systems, Inc.

(2) Deductions represent write-offs of related account balances.

Item 9.

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information
required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported
within the time periods specified in the SEC’s rules and forms, and that such information is
accumulated and communicated to our management, including our principal executive officer and
principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. In
designing and evaluating the disclosure controls and procedures, management recognized that any
controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving the desired control objectives, and management necessarily was required to
apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of March 31, 2009, we completed an evaluation, under the supervision and with the
participation of our management, including our principal executive officer and principal financial
officer, of the effectiveness of the design and operation of our disclosure controls and procedures.
Based on the foregoing, our principal executive officer and principal financial officer concluded that
our disclosure controls and procedures were effective at the reasonable assurance level as of March 31,
2009.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of Triumph Group, Inc. (‘‘Triumph’’) is responsible for establishing and

maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and
15d-15(f) under the Securities Exchange Act of 1934. Triumph’s internal control system over financial
reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with U.S. generally
accepted accounting principles. The company’s internal control over financial reporting includes those
policies and procedures that:

(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect

the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit

preparation of financial statements in accordance with U.S. generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized

acquisition, use or disposition of the company’s assets that could have a material effect on the
financial statements.

Because of inherent limitations, internal control over financial reporting may not prevent or detect

misstatements. Therefore, even those systems determined to be effective can provide only reasonable
assurance with respect to financial statement preparation and presentation. Also, projections of any
evaluation of effectiveness to future periods are subject to risk that controls may become inadequate
because of changes in condition, or that the degree of compliance with the policies or procedures may
deteriorate.

Triumph’s management assessed the effectiveness of Triumph’s internal control over financial
reporting as of March 31, 2009. In making this assessment, management used the criteria set forth by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-
Integrated Framework. Based on management’s assessment and those criteria, management believes
that Triumph maintained effective internal control over financial reporting as of March 31, 2009.

Management’s assessment of and conclusion on the effectiveness of the Company’s internal control

over financial reporting did not include the internal control of Triumph Structures—East Texas, Inc.,
Triumph Actuation & Motion Control Systems—UK, Ltd., Triumph Controls—UK, Ltd., Triumph
Controls—Germany, GmbH, and Triumph Insulation Systems, LLC (and several of its affiliates), all
companies which were acquired in March 2009. These acquisitions, which are more fully discussed in
Note 3 to the consolidated financial statements for fiscal 2009, are included in the 2009 consolidated
financial statements of Triumph Group, Inc. and represented total assets of approximately $185 million
at March 31, 2009. Under guidelines established by the SEC, companies are allowed to exclude
acquisitions from their first assessment of internal control over financial reporting following the date of
acquisition.

Triumph’s independent registered public accounting firm, Ernst & Young LLP, has issued an audit

report on the effectiveness of Triumph’s internal control over financial reporting. This report appears
on page 91.

/s/ RICHARD C. ILL

Richard C. Ill
President and Chief Executive Officer

/s/ M. DAVID KORNBLATT

M. David Kornblatt
Senior Vice President,
Chief Financial Officer & Treasurer

/s/ KEVIN E. KINDIG

Kevin E. Kindig
Vice President and Controller

May 22, 2009

Report of Independent Registered Public Accounting Firm on Internal Control Over
Financial Reporting

To the Board of Directors and Stockholders of Triumph Group, Inc.

We have audited Triumph Group, Inc.’s internal control over financial reporting as of March 31,
2009, based on criteria established in Internal Control—Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (the COSO criteria). Triumph Group Inc.’s
management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting included in the
accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility
is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether effective internal control over financial reporting was maintained
in all material respects. Our audit included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk, and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal
control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or

detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.

As indicated in the accompanying Management’s Report on Internal Control Over Financial
Reporting, management’s assessment of and conclusion on the effectiveness of internal control over
financial reporting did not include the internal controls of Triumph Structures—East Texas, Inc.,
Triumph Actuation & Motion Control Systems—UK, Ltd., Triumph Controls—UK, Ltd., Triumph
Controls—Germany, GmbH, and Triumph Insulation Systems, LLC (and several of its affiliates), which
are included in the 2009 consolidated financial statements of Triumph Group, Inc. and constituted
approximately $185 million of total assets as of March 31, 2009. Our audit of internal control over
financial reporting of Triumph Group, Inc. also did not include an evaluation of the internal control
over financial reporting of Triumph Structures—East Texas, Inc., Triumph Actuation & Motion Control
Systems—UK, Ltd., Triumph Controls—UK, Ltd., Triumph Controls—Germany, GmbH, and Triumph
Insulation Systems, LLC (and several of its affiliates).

In our opinion, Triumph Group, Inc. maintained, in all material respects, effective internal control

over financial reporting as of March 31, 2009, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the consolidated balance sheets of Triumph Group, Inc., as of
March 31, 2009 and 2008, and the related consolidated statements of income, stockholders’ equity, and
cash flows for each of the three years in the period ended March 31, 2009 and our report dated
May 22, 2009 expressed an unqualified opinion thereon.

/s/ ERNST & YOUNG LLP

Philadelphia, Pennsylvania
May 22, 2009

Changes in Internal Control Over Financial Reporting

In addition to management’s evaluation of disclosure controls and procedures as discussed above,

we continue to review and enhance our policies and procedures for internal control over financial
reporting.

We have developed and implemented a formal set of internal controls and procedures for financial
reporting in accordance with the SEC’s rules regarding management’s report on internal controls. As a
result of continued review and testing by management and by our internal and independent auditors,
additional changes may be made to our internal controls and procedures. However, we did not make
any changes to our internal control over financial reporting in our fourth quarter of fiscal 2009 that has
materially affected or is reasonably likely to materially affect our internal control over financial
reporting.

Item 9B. Other Information

None.

Item 10. Directors, Executive Officers and Corporate Governance

PART III

The information required for directors is incorporated herein by reference to our definitive Proxy
Statement for our 2009 Annual Meeting of Stockholders, which shall be filed within 120 days after the
end of our fiscal year (the ‘‘2009 Proxy Statement’’). Information required by this item concerning
executive officers is included in Part I of this Annual Report on Form 10-K.

Section 16(a) Beneficial Ownership Reporting Compliance

The information required regarding Section 16(a) beneficial ownership reporting compliance is

incorporated herein by reference to the 2009 Proxy Statement.

The information required regarding our Code of Business Conduct is incorporated herein by

reference to the 2009 Proxy Statement.

Code of Business Conduct

Stockholder Nominations

The information required with respect to any material changes to the procedures by which

stockholders may recommend nominees to the Company’s board of directors is incorporated herein by
reference to the 2009 Proxy Statement.

Audit Committee and Audit Committee Financial Expert

The information required with respect to the Audit Committee and Audit Committee financial

experts is incorporated herein by reference to the 2009 Proxy Statement.

Item 11. Executive Compensation

The information required regarding executive compensation is incorporated herein by reference to

the 2009 Proxy Statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Matters

The information required under this item is incorporated herein by reference to the 2009 Proxy

Statement.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required under this item is incorporated herein by reference to the 2009 Proxy

Statement.

Item 14. Principal Accountant Fees and Services

The information required under this item is incorporated herein by reference to the 2009 Proxy

Statement.

Item 15. Exhibits, Financial Statement Schedules

(a) Financial Statements

PART IV

(1) The following consolidated financial statements are included in Item 8 of this report:

Triumph Group, Inc.

Report of Ernst & Young LLP, Independent Registered Public Accounting Firm . . . . . .
Consolidated Balance Sheets as of March 31, 2009 and 2008 . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Income for the Fiscal Years Ended March 31, 2009, 2008

and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consolidated Statements of Stockholders’ Equity for the Fiscal Years Ended March 31,

2009, 2008 and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2009,

2008 and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The following financial statement schedule is included in this report:

Schedule II—Valuation and Qualifying Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page

46
47

50
51

Page

All other schedules have been omitted as not applicable or because the information is included

elsewhere in the Consolidated Financial Statements or notes thereto.

(3) The following is a list of exhibits. Where so indicated by footnote, exhibits which were

previously filed are incorporated by reference.

Exhibit
Number

Description

3.1*

Amended and Restated Certificate of Incorporation of Triumph Group, Inc.

3.2

4.1

4.2

Bylaws of Triumph Group, Inc.(1)

Form of certificate evidencing Common Stock of Triumph Group, Inc.(1)

Indenture, dated as of September 18, 2006, between Triumph Group, Inc. and The Bank of
New York Trust Company, N.A. relating to the 2.625% Convertible Senior Subordinated
Notes Due 2026.(2)

Exhibit
Number

4.3

4.4

10.1

10.2

Description

Form of the 2.625% Convertible Senior Subordinated Note Due 2026. (Included as
Exhibit A to Exhibit 4.2).(2)

Registration Rights Agreement, dated as of September 18, 2006, between Triumph
Group, Inc. and Banc of America Securities LLC.(2)

Amended and Restated Directors’ Stock Incentive Plan.(3)

Form of Deferred Stock Unit Award Agreement under the Amended and Restated
Directors’ Stock Incentive Plan.(3)

10.3#

2004 Stock Incentive Plan.(4)

10.4

10.4(a)

10.4(b)

10.4(c)

10.4(d)

Amended and Restated Credit Agreement (the ‘‘Amended and Restated Credit Agreement’’)
dated July 27, 2005 among Triumph Group, Inc., PNC Bank National Association, as
Administrative Agent, Bank of America, N.A., as Syndication Agent, Citizens Bank of
Pennsylvania, as Documentation Agent, and Manufacturers and Traders Trust Company, as
Managing Agent, National City Bank of Pennsylvania, as Managing Agent and PNC Capital
Markets, Inc., as Lead Arrangers and the Banks party thereto.(5)

First Amendment to Amended and Restated Credit Agreement, dated September 18,
2006.(6)

Second Amendment to Amended and Restated Credit Agreement, dated October 20,
2006.(6)

Third Amendment to Amended and Restated Credit Agreement, dated December 22,
2006.(7)

Fourth Amendment to Amended and Restated Credit Agreement, dated October 15,
2007.(8)

10.4(e)

Fifth Amendment to Amended and Restated Credit Agreement, dated July 10, 2008.(9)

10.5#

Triumph Group, Inc. Supplemental Executive Retirement Plan effective January 1, 2003.(10)

10.6

Compensation for the non-employee members of the Board of Directors of Triumph
Group, Inc.(3)

10.7*#

Form of Stock Award Agreement under the 2004 Stock Incentive Plan.

10.8*#

Form of letter confirming Stock Award Agreement under the 2004 Stock Incentive Plan.

10.9#

Description of the Triumph Group, Inc. Annual Cash Bonus Plan.(11)

10.10#

Change of Control Employment Agreement with: Richard C. Ill, M. David Kornblatt,
John B. Wright, II and Kevin E. Kindig.(12)

10.11#

Restricted Stock Award Agreement for M. David Kornblatt.(13)

10.12

21.1*

23.1*

31.1*

31.2*

Form of Receivables Purchase Agreement, by and among the Triumph Group, Inc., as Initial
Servicer, Triumph Receivables, LLC, as Seller, the various Purchasers and Purchase Agents
from time to time party thereto and PNC National Association, as Administrative Agent.(9)

Subsidiaries of Triumph Group, Inc.

Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.

Principal Executive Officer Certification Required by Rule 13a-14(a) or Rule 15d-14(a)
under the Securities Exchange Act of 1934, as amended.

Principal Financial Officer Certification Required by Rule 13a-14(a) or Rule 15d-14(a) under
the Securities Exchange Act of 1934, as amended.

Exhibit
Number

32.1*

32.2*

Description

Principal Executive Officer Certification Required by Rule 13a-14(b) or Rule 15d-14(b)
under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350.

Principal Financial Officer Certification Required by Rule 13a-14(b) or Rule 15d-14(b)
under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350.

(1) Incorporated by reference to our Registration Statement on Form S-1 (Registration No. 333-10777)

declared effective on October 24, 1996.

(2) Incorporated by reference to our Current Report on Form 8-K filed on September 22, 2006.

(3) Incorporated by reference to our Current Report on Form 8-K filed on August 1, 2006.

(4) Incorporated by reference to our Proxy Statement on Schedule 14A for the 2004 Annual Meeting

of Stockholders.

(5) Incorporated by reference to our Current Report on Form 8-K filed August 2, 2005.

(6) Incorporated by reference to our Current Report on Form 8-K filed on October 26, 2006.

(7) Incorporated by reference to our Current Report on Form 8-K filed on December 29, 2006.

(8) Incorporated by reference to our Quarterly Report on Form 10-Q for the quarter ended

September 30, 2007.

(9) Incorporated by reference to our Current Report on Form 8-K filed on August 12, 2008.

(10) Incorporated by reference to our Annual Report on Form 10-K for the year ended March 31, 2003

(11) Incorporated by reference to our Current Report on Form 8-K filed on July 31, 2007.

(12) Incorporated by reference to our Current Report on Form 8-K filed on March 13, 2008

(13) Incorporated by reference to our Current Report on Form 8-K filed on June 14, 2007.

Filed herewith.

# Compensation plans and arrangements for executives and others.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed by the undersigned, thereunto duly
authorized.

SIGNATURES

TRIUMPH GROUP, INC.

Dated: May 22, 2009

By: /s/ RICHARD C. ILL

Richard C. Ill
President and Chief Executive Officer
(Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has

been signed below by the following persons on behalf of the Registrant and in the capacities and on
the dates indicated.

/s/ RICHARD C. ILL

Richard C. Ill

President, Chief Executive Officer and Director
(Principal Executive Officer)

May 22, 2009

/s/ M. DAVID KORNBLATT

M. David Kornblatt

Senior Vice President, Chief Financial Officer
and Treasurer (Principal Financial Officer)

May 22, 2009

/s/ KEVIN E. KINDIG

Kevin E. Kindig

/s/ PAUL BOURGON

Paul Bourgon

/s/ RICHARD C. GOZON

Richard C. Gozon

/s/ CLAUDE F. KRONK

Claude F. Kronk

/s/ GEORGE SIMPSON

George Simpson

/s/ JOSEPH M. SILVESTRI

Joseph M. Silvestri

May 22, 2009

Vice President and Controller (Principal
Accounting Officer)

Director

Exhibit
Number

EXHIBIT INDEX

Description

3.1*

Amended and Restated Certificate of Incorporation of Triumph Group, Inc.

3.2

4.1

4.2

4.3

4.4

10.1

10.2

Bylaws of Triumph Group, Inc.(1)

Form of certificate evidencing Common Stock of Triumph Group, Inc.(1)

Indenture, dated as of September 18, 2006, between Triumph Group, Inc. and The Bank of
New York Trust Company, N.A. relating to the 2.625% Convertible Senior Subordinated
Notes Due 2026.(2)

Form of the 2.625% Convertible Senior Subordinated Note Due 2026. (Included as Exhibit A
to Exhibit 4.2).(2)

Registration Rights Agreement, dated as of September 18, 2006, between Triumph
Group, Inc. and Banc of America Securities LLC.(2)

Amended and Restated Directors’ Stock Incentive Plan.(3)

Form of Deferred Stock Unit Award Agreement under the Amended and Restated
Directors’ Stock Incentive Plan.(3)

10.3#

2004 Stock Incentive Plan.(4)

10.4

10.4(a)

10.4(b)

10.4(c)

10.4(d)

10.4(e)

First Amendment to Amended and Restated Credit Agreement, dated September 18,
2006.(6)

Second Amendment to Amended and Restated Credit Agreement, dated October 20,
2006.(6)

Third Amendment to Amended and Restated Credit Agreement, dated December 22,
2006.(7)

Fourth Amendment to Amended and Restated Credit Agreement, dated October 15,
2007.(8)

Form of the Fifth Amendment to Amended and Restated Credit Agreement, dated July 10,
2008.(9)

10.5#

Triumph Group, Inc. Supplemental Executive Retirement Plan effective January 1, 2003.(10)

10.6

Compensation for the non-employee members of the Board of Directors of Triumph
Group, Inc.(3)

10.7*# Form of Stock Award Agreement under the 2004 Stock Incentive Plan.

10.8*# Form of letter confirming Stock Award Agreement under the 2004 Stock Incentive Plan.

10.9#

Description of the Triumph Group, Inc. Annual Cash Bonus Plan.(11)

10.10# Change of Control Employment Agreement with: Richard C. Ill, M. David Kornblatt, John

B. Wright, II and Kevin E. Kindig.(12)

Exhibit
Number

Description

10.11# Restricted Stock Award Agreement for M. David Kornblatt.(13)

10.12

21.1*

23.1*

31.1*

31.2*

32.1*

32.2*

Subsidiaries of Triumph Group, Inc.

Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.

Principal Executive Officer Certification Required by Rule 13a-14(a) or Rule 15d-14(a) under
the Securities Exchange Act of 1934, as amended.

Principal Financial Officer Certification Required by Rule 13a-14(a) or Rule 15d-14(a) under
the Securities Exchange Act of 1934, as amended.

Principal Executive Officer Certification Required by Rule 13a-14(b) or Rule 15d-14(b)
under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350.

Principal Financial Officer Certification Required by Rule 13a-14(b) or Rule 15d-14(b) under
the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350.

(1) Incorporated by reference to our Registration Statement on Form S-1 (Registration No. 333-10777)

declared effective on October 24, 1996.

(2) Incorporated by reference to our Current Report on Form 8-K filed on September 22, 2006.

(3) Incorporated by reference to our Current Report on Form 8-K filed on August 1, 2006.

(4) Incorporated by reference to our Proxy Statement on Schedule 14A for the 2004 Annual Meeting

of Stockholders.

(5) Incorporated by reference to our Current Report on Form 8-K filed August 2, 2005.

(6) Incorporated by reference to our Current Report on Form 8-K filed on October 26, 2006.

(7) Incorporated by reference to our Current Report on Form 8-K filed on December 29, 2006.

(8) Incorporated by reference to our Quarterly Report on Form 10-Q for the quarter ended

September 30, 2007.

(9) Incorporated by reference to our Current Report on Form 8-K filed on August 12, 2008.

(10) Incorporated by reference to our Annual Report on Form 10-K for the year ended March 31, 2003

(11) Incorporated by reference to our Current Report on Form 8-K filed on July 31, 2007.

(12) Incorporated by reference to our Current Report on Form 8-K filed on March 13, 2008

(13) Incorporated by reference to our Current Report on Form 8-K filed on June 14, 2007.

Filed herewith.

# Compensation plans and arrangements for executives and others.

(This page has been left blank intentionally.)

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF
THE SECURITIES AND EXCHANGE ACT OF 1934

I, Richard C. Ill, certify that:

I have reviewed this annual report on Form 10-K of Triumph Group, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining

disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for
the registrant and have:

designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principals;

evaluated the effectiveness of the registrant’s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial
reporting that occurred during the registrant’s fourth fiscal quarter that has materially affected, or
is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant’s auditors and the audit
committee of the registrant’s board of directors (or persons performing the equivalent functions):

all significant deficiencies and material weaknesses in the design or operation of internal

control over financial reporting which are reasonably likely to adversely affect the registrant’s
ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who

have a significant role in the registrant’s internal control over financial reporting.

Dated: May 22, 2009

/s/ RICHARD C. ILL

Richard C. Ill
President and Chief Executive Officer (Principal
Executive Officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF
THE SECURITIES AND EXCHANGE ACT OF 1934

I, M. David Kornblatt, certify that:

I have reviewed this annual report on Form 10-K of Triumph Group, Inc.;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining

designed such disclosure controls and procedures, or caused such disclosure controls and

all significant deficiencies and material weaknesses in the design or operation of internal

control over financial reporting which are reasonably likely to adversely affect the registrant’s
ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who

have a significant role in the registrant’s internal control over financial reporting.

Dated: May 22, 2009

/s/ M. DAVID KORNBLATT

M. David Kornblatt
Senior Vice President, Chief Financial Officer and
Treasurer (Principal Financial Officer)

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Exhibit 32.1

In connection with the Annual Report of Triumph Group, Inc. (the ‘‘Company’’) on Form 10-K for

the year ended March 31, 2009 as filed with the Securities and Exchange Commission on the date
hereof (the ‘‘Report’’), I, Richard C. Ill, President, and Chief Executive Officer of the Company,
certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002,
to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities

Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial

condition and results of operations of the Company.

By: /s/ RICHARD C. ILL

Richard C. Ill
President and Chief Executive Officer
(Principal Executive Officer)
May 22, 2009

A signed original of this written statement required by Section 906 has been provided to Triumph
Group, Inc. and will be retained by Triumph Group, Inc. and furnished to the Securities and Exchange
Commission or its staff upon request.

Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Triumph Group, Inc. (the ‘‘Company’’) on Form 10-K for

the year ended March 31, 2009 as filed with the Securities and Exchange Commission on the date
hereof (the ‘‘Report’’), I, M. David Kornblatt, Senior Vice President, Chief Financial Officer and
Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the
Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities

Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial

condition and results of operations of the Company.

By: /s/ M. DAVID KORNBLATT

M. David Kornblatt
Senior Vice President, Chief Financial Officer and
Treasurer(Principal Financial Officer)
May 22, 2009

(This page has been left blank intentionally.)