Triumph Group Annual Report 2018

FY2018 Annual Report · Triumph Group

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Chonburi, Thailand

An employee maintains
a thrust reverser at one of
Triumph Product Support's
MRO facilities.

As we look to the next 25 years and beyond,
we are focusing on what we do best —
leveraging our strengths as One Triumph to
deliver the highest value to our stockholders,
customers and employees.

T O T A L B A C K L O G
$ I N B I L L I O N S

$ 5

A B O U T T R I U M P H

Triumph Group, Inc. headquartered in Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of aircraft
structures, components, accessories, and systems. The company serves a
broad spectrum of the global aviation industry, including original equipment
manufacturers of commercial, regional, business and military aircraft and
aircraft components, as well as commercial and regional airlines and air
cargo carriers.

2 0 1 6

2 0 1 7

2 0 1 8

F I N A N C I A L H I G H L I G H T S
(in millions, except per share data)

A D J U S T E D S E G M E N T
O P E R A T I N G I N C O M E

Fiscal Year
Ended March 31

2018

2017

2016

Net sales

$3,199

$3,533

$3,886

2 0 %
A E R O S P A C E
S T R U C T U R E S

1 6 %
P R O D U C T S U P P O R T

Adjusted operating income

Adjusted net income

Adjusted diluted
earnings per share

Cash flow from operations*

Total assets

Total debt

Total equity

Non-GAAP Reconciliation

221

126

2.53

(289)

3,805

1,438

457

431

323

6.54

282

4,415

1,196

846

463

264

5.37

4,835

1,417

935

6 4 %
I N T E G R A T E D S Y S T E M S

Operating (loss) income – GAAP

$(362)

$ 57

$(1,091)

S A L E S B Y E N D M A R K E T

2 %
R E G I O N A L J E T

Forward losses
Restructuring
Legal settlements
Impairments
Other

Adjusted operating income

Interest & other
Less: Financing charges

1 9 %
B U S I N E S S
J E T

2 %
N O N - A V I A T I O N

Adjusted income before income taxes

Income taxes
Valuation allowance
Tax effect of adjustments

Adjusted net income

Diluted earnings per share – GAAP

Per share impact of adjustments

Adjusted diluted
earnings per share

5 7 %
C O M M E R C I A L

Weighted average diluted shares

2 0 %
M I L I T A R Y

-
43
-
535
5

221

(99)
2

123

36
-
(33)

126

(8.60)

11.13

2.53

49.7

-
53
-
266
55

431

(81)
-

351

(19)
-
(8)

323

(0.87)

7.41

6.54

49.4

561
81
5
874
33

463

(68)
-

395

(111)
146
(388)

264

(21.29)

26.66

5.37

49.3

* Free cash use of $331 million includes $42 million of capital expenditures.

T O O U R V A L U E D S T O C K H O L D E R S

s I embark on my third year as Triumph Group’s
CEO, I am grateful to lead our company as we
continue our transformation journey and define our
Path to Value. We continue to make strong progress
and we are well on our way to returning Triumph to
predictable profitability. Though we still have obstacles
to overcome, Triumph’s performance is stabilizing,
and we are securing new business and follow-on
orders. Our company vision is to be the premier
design, manufacturing and support company for the
aerospace industry whose comprehensive capabilities,
integrated processes and innovative employees
advance the safety and prosperity of the world. We
are much better positioned today towards realizing
that goal than we were two years ago.

This year we celebrate Triumph’s silver jubilee — 25
years since the founding of our company. In 1993, a
unique combination of 13 specialty companies were
organized under the Triumph Group name to serve
the aerospace industry. Growing from a group of small
aerospace specialty shops to a unified group of 50+
facilities whose combined expertise in the design
and manufacturing of aircraft structures, components
and systems, as well as global aftermarket service
offerings, has bolstered the company’s reputation as a
trusted partner at any stage of the aircraft lifecycle.

Today, we are creating value for the next 25 years
and beyond. We are rightsizing the company and
reshaping our portfolio to focus on businesses that
best fit the strategic direction of the company.
We are implementing continuous improvement
initiatives leveraging the Triumph Operating System
to standardize processes, become more efficient,
better manage operating expenses, inventory and
development costs, and improve quality.

D A N I E L J . C R O W L E Y
President and Chief Executive Officer

can come to work intently focused on achieving
our goals. Our customers are pleased with the
changes and are eager to work with us, turning to
Triumph for new business opportunities, fostered
by enhanced relationships and on-time deliveries
of high quality products.

As part of our path to value, the actions we take
today are building a foundation for profitable
growth. For fiscal year 2018, sales were $3.1 billion,
and adjusted earnings per diluted share were
$2.53. Furthermore, our cost reduction initiatives,
divestitures, consolidations and strengthened
customer relationships allowed us to close out
the year consuming $331 million in cash, which
was within our guidance.

Our leadership team is committed to providing highly
responsive customer service and delivering value to
stockholders. We are creating a performance-based
culture in which our employees can be proud, so they

Consolidating Aerospace Structures
Triumph Group today consists of three focused
business units: Aerospace Structures, Integrated
Systems and Product Support. This organizational

Annual Report 2018 | 3

structure provides greater clarity into our capabilities
and better aligns our go-to-market strategies with our
customers’ needs. It also allows us to better align our
talent and internal operations to improve efficiency.

The decision to combine the former Aerospace
Structures and Precision Components business
units was made after two years of intense work to
streamline the two businesses. Operating these groups
as a single unit will yield synergies that will enable us
to better serve our customers while improving long-
term profitability. Both of these businesses serve the
same customers, source from the same suppliers and
are headquartered in Arlington, Texas, where the staff
will be combined. The merger is a logical strategic
fit and has been well received by our customers.
These steps better position Aerospace Structures by
reducing costs and improving overall competitiveness.

Strengthening Customer Relationships
Improving relationships with our customers is a key
priority for Triumph and is a direct outcome of our
efforts to deliver on commitments. Throughout the
year, I visited many of our key customers including
Airbus, Boeing, Gulfstream, Honeywell, Lockheed
Martin, Northrop Grumman, Rolls Royce and Sikorsky.
These customers want to work with Triumph, and we
are well positioned to expand our workshare as we
further improve program execution.

We improved our contract and relationship with
Bombardier and witnessed the first flight of the
third, fourth and fifth Global 7000 flight test vehicles
featuring our structures and actuators on board. Flight
Test Vehicle 5 incorporated the most complex and
capable wing that is the basis for production, with the
first 15 production wings delivered off our automated
line in Red Oak, Texas. As we enter fiscal year 2019,
we are well along on the Global 7000 production ramp.

Throughout the year, we won competitive contracts for
new expanded scopes of work on programs with some
of our biggest customers including Airbus, Boeing,
Bombardier, Gulfstream, Rolls Royce, Sierra Nevada
and more. We partnered with Boeing to retain and
expand work on programs including the 767 and 787,
as well as win new work on the 777 and 737. We also
won new work on the A320, F-35 and V-22.

After three years of revenue contraction, we see
the results of our enhanced business development
efforts in driving organic growth. In fiscal year 2018,
backlog was up 11 percent over the prior year, and
our win rate doubled. The book-to-bill ratio improved
to above 1.16, surpassing our goal set two years prior.
This success can be credited to our new business
development team who grew our pipeline to over
$11.5 billion. Approximately 28 percent of competitive
wins were on military contracts, in support of our goal
to increase military content to at least 30 percent
of sales.

We expect the new Air Force T-X training jet will
contribute to our military sales goal. Triumph
was tapped by Boeing as a major supplier for its
entry into the competition. If the Air Force selects
Boeing, Triumph will supply the wing, vertical tail
and horizontal tail structure, with opportunities for
additional work. We successfully delivered these
structures for Boeing’s two aircraft demonstrators,
and we are hopeful that we will be supporting
the Boeing T-X trainer program for decades to come.

Our Fabrications company in Hot Springs, Arkansas
and our Geared Solutions company in Park City,
Utah were both recognized by Sikorsky Aircraft
for exceptional supplier performance. Hot Springs
Fabrications was awarded Elite Supplier status for
achieving a perfect rating of 100 percent in quality,
exceptional ratings for on-time delivery, market
feedback and performance on Sikorsky’s Health
Assessment. Our Park City Geared Solutions company
once again received the Supplier of the Year award
from Sikorsky Aircraft in recognition for its support
of the S-97 Raider® program.

Taking Triumph into the
Next Fiscal Year and Beyond
We are committed to becoming predictably profitable
by reducing costs and renegotiating loss-generating
contracts. We achieved our target of $96 million in
cost savings for fiscal year 2018 and are on track to
achieve our goal of $300 million by end of fiscal year
2019 through our supply chain initiatives, consolidation
and Lean deployment. We are on the path to positive
free cash flow as we transition development programs
into production.

4 | Triumph Group

A key part of our cost-reduction approach is to
outsource work better performed by our supply chain
or customers when it is advantageous. We partnered
with Korea’s ASTK to outsource the build of Embraer’s
E2 regional jet fuselage work. ASTK, a proven supplier
we have worked with for many years, is currently
building many of the E2 piece parts. At the end of the
fiscal year we reached an agreement with Gulfstream
that would optimize Triumph’s role in the supply chain
of structural and composite components for the G650
to better leverage our capabilities for the program.
We will continue to outsource work where there is a
better match between the program’s needs, suppliers’
capabilities and Triumph’s financial goals as we ensure
the right parts are built at the right places at the
lowest possible cost.

Triumph continues to invest in R&D. Our areas
of research include thermoplastics, additive
manufacturing and electronics, which will enable the
next generation of aircraft to achieve weight and fuel
efficiency targets.

Responsible Citizenship
We care deeply about our people and the communities
in which we live and work. Since 2011, Triumph has
demonstrated its dedication to corporate citizenship
through its Wings community outreach program.
Through Wings, Triumph employees around the
world work to uplift their community by completing
meaningful volunteer projects that directly benefit
local charities committed to serving the needs of
others. To commemorate our 25th Anniversary, the
company committed to 25,000 hours of volunteerism,
partnering with some of our favorite local and national
organizations like the Red Cross and United Way.

At our manufacturing sites, the Environment, Safety
and Health (ES&H) team is leading the company’s
efforts to provide a safe workplace for our employees,
customers and visitors and to ensure our operations
are conducted in an environmentally responsible
manner in accordance with applicable laws and
regulations. Our ES&H Council was chartered to foster
and lead a culture that provides the skills, resources
and management to fully engage and empower the
workforce to create an incident-free environment.

Each day we work to minimize our environmental
impacts, supporting responsible use of natural
resources, energy conservation, waste minimization
and pollution prevention. We are committed to a
clean environment and sustainable future.

Looking Ahead
I am confident that Triumph has the right people and
plan in place to drive sustainable success. Our goal is
to accelerate this momentum and ultimately translate
our operational initiatives into improved financial
performance on a sustained basis.

To further our growth and value creation strategy
and as part of our commitment to refreshing the
Board, we added two new directors in January 2018
who both bring extensive financial acumen and
considerable experience in the growing military and
commercial aircraft industries we serve. I appreciate
the Board’s guidance and support as the management
team executes against our transformation goals.

Looking ahead to fiscal year 2019, we expect to see
year-over-year revenue growth as we convert backlog
to replace sun-setting programs and transition new
programs into production after years of development
spending, to enhance value to stockholders.

On behalf of the entire Board and management team,
I want to thank our investors, customers, suppliers
and employees for your continued support. I am
excited about the steps we are taking to establish
Triumph as an even stronger company for the next 25
years and beyond, and look forward to sharing our
progress as Triumph continues on its path to value.

D A N I E L J . C R O W L E Y
President and Chief Executive Officer

Annual Report 2018 | 5

S E N I O R L E A D E R S H I P T E A M

Functional Leaders

Business Unit Leaders

Standing, from left to right:
Gary V. Tenison
Vice President, Strategy
and Business Development

Lance R. Turner
Sr. Vice President,
Human Resources

Seated, from left to right:
Michael J. Holtz
Vice President,
Performance Excellence

S. Melissa Scheppele
Vice President and
Chief Information Officer

From left to right, standing to seated:
Peter Wick
Executive Vice President,
Aerospace Structures

Michael R. Abram
Executive Vice President,
Product Support

James F. McCabe Jr.
Sr. Vice President
and Chief Financial Officer

Daniel J. Ostrosky
Vice President
Supply Chain

Thomas K. Holzthum
Executive Vice President,
Integrated Systems

John B. Wright, II
Sr. Vice President
General Counsel
and Secretary

Stacey W. Clapp
Vice President,
Contracts

C O R P O R A T E O F F I C E R S
Michael R. Abram
Executive Vice President,
Product Support

Kevin E. Kindig
Vice President
and Treasurer

Thomas A. Quigley, III
Vice President and
Controller

Peter Wick
Executive Vice President,
Aerospace Structures

Daniel J. Crowley
President and Chief
Executive Officer

James F. McCabe Jr.
Sr. Vice President and
Chief Financial Officer

Sheila G. Spagnolo
Vice President, Tax &
Investor Relations

Thomas K. Holzthum
Executive Vice President,
Integrated Systems

Daniel J. Ostrosky
Vice President,
Supply Chain

Lance R. Turner
Sr. Vice President,
Human Resources

John B. Wright, II
Sr. Vice President,
General Counsel
and Secretary

D I R E C T O R S

Paul Bourgon
President,
Aeroengine Division
SKF USA

Daniel J. Crowley
President and
Chief Executive Officer,
Triumph Group, Inc.

John G. Drosdick
Chairman, President
& Chief Executive Officer,
Sunoco, Inc. (Retired)
6 | Triumph Group

Ralph E. Eberhart
Chairman,
Triumph Group, Inc.
President,
Armed Forces Association
General, U.S. Air Force
(Retired)

Daniel Garton
Former Chief Executive
Officer and President,
American Eagle,
American Airlines

Dawne S. Hickton
President and
Founding Partner,
Cumberland Highstreet
Partners, Inc.

William L. Mansfield
Chairman and
Chief Executive Officer,
The Valspar Corporation
(Retired)

Adam J. Palmer
Managing Director
The Carlyle Group

Joseph M. Silvestri
Managing Partner,
Court Square Capital

Larry O. Spencer
President,
Air Force Association
General, U.S. Air Force
(Retired)

Grand Prairie, Texas

Assembly of fuselage panels
using an automated riveter.

20
1 8

We continue our
transformation journey
and define our
path to value.

Annual Report 2018 | 7

C O M M E R C I A L A I R C R A F T

Integrated Systems (TIS)

Aerospace Structures:
Structural Work (TAS)

Aerospace Structures:
Component Work (TAS)

Product Support (TPS)

This drawing is
intended to depict
products and services
generally provided by
Triumph and does not
represent products and
services provided on
any particular aircraft.

Cockpit Controls
TIS designs and
manufactures cockpit
controls including flaps,
spoiler and landing gear
levers, nose wheel steering
tillers, park and emergency
brake handles, ADG/
RAT release handles and
complete throttle quadrants.

Integrated
Wing Assembly
TAS is a provider
of large, fully
assembled wing
structures, with
design knowledge
and manufacturing
experience from
wing root to tip.

1 2

Nacelles

TPS provides global solutions
for the repair and overhaul
of commercial, regional, and
military thrust reversers and
inlet and fan cowls.

1 0

Fuselage Assemblies
By utilizing robotics,
automation, composite
lay-up and bonding, TAS
provides cost-effective
solutions through
efficient manufacturing
and final assembly.

Empennage
TAS designs and builds
empennage structures
for military and
commercial aircraft using
advanced construction
of composite and
metallic materials.

8 | Triumph Group

Accessories

TPS provides repair and overhaul
support for numerous aircraft
accessories including pneumatics,
hydraulics, environmental control
systems, actuation, CSD/IDG,
heat transfer, engine controls,
fuel accessories and gearboxes.

Hold Open Rods
TIS is a recognized provider
of telescoping hold open
rods as well as fixed length
struts. These products are
mainly used to keep fan
cowls, radomes, doors,
thrust reversers and
maintenance panels in
the open position.

Spars, Stringers
and Longerons
TAS manufactures
parts that are
critical to the
airframe. Designs
range from small
and simple to
large and complex.

Flight
Control Surfaces
TAS designs and
fabricates metallic
and composite flaps,
ailerons, rudders, elevators,
spoilers and stabilizers.

Door Actuation
TIS specializes in the
design and production
of a wide variety of
electromechanical,
hydraulic and
mechanical actuation,
software and control
components and
systems.

Line Maintenance
and Fuel Systems

TPS repairs commercial, military
and regional aircraft fuel tank and
bladders by providing both line and
base maintenance services at over
twenty-five locations worldwide.

1 1

Interiors

TPS is a global leader in the
repair and refurbishment of
sidewalls, bin doors, galleys,
lavs, PSUs and seats. It also
provides interior component
part manufacturing to
commercial and regional
aircraft operations.

Flight Control Surfaces

TPS specializes in the repair
and overhaul of all flight control
surfaces, including slats, flaps,
ailerons, elevators, and rudders.

Leading Edge
and Trailing Edge
TAS employs advanced
assembly techniques, such
as precision coordinated
DA assembly holes, to
produce lightweight and
durable flap assemblies.

Cabin Components
TAS designs and fabricates
cabin components from
a variety of thermoplastic
and high-tensile strength
fabrics. Products include
backrest panels, bi-fold
and sliding tray tables,
arm rests, literature
pockets and seatback
and bottom diaphragms.

Wing Panels
TAS designs and fabricates
cost-competitive composite
and metallic unitized wing
skin panels using advanced
techniques including SQRTM.

Nose
Wheel Steering
TIS designs and
manufactures the system
that enables aircraft to
taxi on the runway as
well as aircraft carriers.
Triumph’s unique system
allows for 360° castering.
Annual Report 2018 | 9

Main Transmission
TIS offers a
complete suite of
aerospace gearbox
solutions including
engine accessory
gearboxes, helicopter
transmissions, power
drive and high load
geared actuation
systems and complex
gear assemblies.

Fuselage
Components
TAS produces forward
cabins, aft fuselages,
floor panels, doors
and sponsons for
military and commercial
rotorcraft.

TPS: Product Support

TPS provides repair
and overhaul services for
T700 engine components
including hydromechanical
unit components.

Fuel Control Unit
TIS designs and
manufactures major
control systems for
rotorcraft engines
including FADECs,
fuel pumps and valves
and fuel metering units.

This drawing is
intended to depict
products and services
generally provided by
Triumph and does not
represent products and
services provided on
any particular aircraft.

R O T O R C R A F T

Integrated Systems (TIS)

Aerospace Structures:
Structural Work (TAS)

Aerospace Structures:
Component Work (TAS)

Product Support (TPS)

TPS: Product Support

TPS manufactures and
provides repair services
for the vibration absorber
component.

Collective Stick
TIS designs and
manufactures
collective sticks, which
are integrated into
the flight controls and
engine fuel controls.
This provides the
pilot control from the
cockpit to the engine.

10 | Triumph Group

Control Surfaces
TAS fabricates
composite and metallic
empennage, rudders
and elevators for
commercial and
military rotorcraft.

Landing
Gear Systems
TIS designs, develops
and tests rotorcraft
and fixed-wing aircraft
landing gear systems
including door
actuation, locking,
bogie pitch trimmers
and stroke snubbing.

Clemmons, North Carolina

An employee conducts a quality
inspection on a hydraulic actuator.

Annual Report 2018 | 11

Over the past 25 years,
the aerospace industry has
evolved tremendously —
as has Triumph Group.
What began in 1993 as a
holding company for 13
companies across diverse
industries, grew by acquisition
to more than 40 entities,
and today serves as one of
the leading system design,
manufacturing and support
providers in the aerospace
and defense industry.

Historically the aerospace industry experienced
cyclical growth cycles — typically 10-year spans
characterized by spurts of significant booms followed
by disappointing declines — however, that trend took
a turn for the better in the early nineties, around
the time Triumph entered the market. Over the past
quarter-century, the industry experienced significant
increases in new aircraft production and a record high
commercial backlog.

will drive increases in production of aircraft and
military-related products, as well as the need for
aftermarket support, creating more opportunities
for Triumph Group.

We are better positioned than ever to provide design
expertise, integrated systems and total lifecycle
solutions well into the future. And with our businesses

During this time, Triumph, too, was growing into
one of the most reliable aircraft lifecycle solution
providers serving the industry. Our businesses
continue to deliver a breadth of highly specialized
solutions including engineering, testing, precision
manufacturing, systems integration and repair
capabilities, which enables us to support our
customers at all stages of the aerospace lifecycle.

Because of our comprehensive capabilities, depth of
technical expertise and relentless focus on quality and
responsiveness, our customers have turned to us to
help solve some of their most complex problems. In
our first 25 years, Triumph has established itself as a
value-added strategic partner to original equipment
manufacturers (OEMs), airline carriers and industrial
manufacturers around the world.

Now, like many of the aircraft programs we support,
it’s time for our “ramp up.”

We are currently in an environment of continued
growth, especially in Asia and developing countries.
Looking ahead, demand will continue to grow, which

12 | Triumph Group

working together as One Company, Triumph is making
it easier and more efficient for customers to do
business with us.

As we look to the next 25 years and beyond, we
are focusing on what we do best — leveraging our
strengths as One Triumph to deliver the highest value
to our stockholders, customers and employees.

Growing Forward
With the sunsetting of successful programs such as
the F-15, G450, and C-17, our attention is focused
on new aircraft opportunities and the future looks
bright for Triumph. Our design and engineering work,
manufacturing, and supply chain integration capability
has brought development programs such as the Global
7000 and E190-E2 to the next stage of production.
We also continue to gain additional content on new
programs including the 737, 787, A320, A350, and
the F-35.

From left to right:
Product Support
Triumph Aviation
Services – Asia
Chonburi, Thailand

Integrated Systems
Fluid Power & Actuation
Clemmons, North Carolina

Aerospace Structures
Interiors
Mexicali, Mexico

As we look to increase our military content, the U.S.
Defense budget now provides a positive environment
to underpin our growth objectives, with the FY 2018
and 2019 enacted defense budget’s exceeding the
sequestration cap by a total of $165 billion. This
budget includes production increases on programs in
which Triumph has content, such as CH-53K, AH-64,
KC-46, F-18, and F-35, which is good news for our
readiness, for our troops, and for our industry.

In addition to growth with existing platforms, we
have established partnerships on programs of the
future, including the Boeing Defense T-X program
partnership, and the recently announced MQ-25
Unmanned Aircraft System partnership with Lockheed
Martin. Both of these programs are scheduled for
source selection this year.

As operators continue to demand efficient solutions,
Triumph is well-positioned to deliver excellent support
as an independent third-party accessory and structures
service provider. We are proud of our reputation for
customer intimacy and responsiveness and are fully-
engaged with both our OEM partners and our airline
and MRO customers.

Finally, space programs, aircraft engines, missile
programs, and emerging supersonic and hypersonic
programs provide additional growth opportunities
for integrative Triumph Group solutions.

Adding to our military wins in FY 2018, our Geared
Solutions business was selected to provide the aircraft
mounted accessory drive gearbox for a major fighter
program. Triumph was also selected to provide wing
skins for the T-38, V-22 flight controls and structural
components, and was awarded a performance-based
logistics contract on CH-53E.

With the aftermarket consistently creating long-term
growth opportunities, Triumph will continue to partner
with OEMs and operators to provide full lifecycle
support. The aftermarket provides a strong channel
for profitability, and we currently see rising demand
in this segment.

From left to right:
Integrated Systems
Electronics & Control
West Hartford,
Connecticut

Aerospace Structures
Metallic & Composite
Components
Edgerton, Kansas

Product Support
Triumph Aviation Services
Austin, Texas
(customer site)

Design Authority
As we look forward, Triumph will continue to seek
business in areas where we provide the greatest value
to customers, collaborating to design systems and
solutions that benefit from our long history of superior
design, development and production expertise.

Triumph’s industry-leading engineering capability and
extensive experience solving some of the most difficult
challenges in aerospace brings value to customers who
partner with Triumph.

Our role in the design and development of the
Bombardier Global 7000 wing and the Boeing
Defense T-X trainer wing demonstrates our depth
of engineering expertise. Additionally, Lockheed’s
recent selection of Triumph Group as an industrial

Annual Report 2018 | 13

partner on the new MQ-25 UAS tanker reinforces
Triumph’s reputation as the partner of choice for new
aircraft programs.

Triumph has also built a reputation as a highly
capable and reliable “build-to-print” partner for
systems, products and structures. We are striving to
rebalance our portfolio with a more optimal mix of
build-to-print product and design-and-build solutions
for both commercial and military applications. We
are increasingly selective as we evaluate each new
opportunity and carefully analyze our bids to ensure
the opportunity aligns well with our strategies and
business case requirements.

Triumph continues to invest in automated design
tools and digital capabilities that will create a more
integrated, efficient flow of program data. The design
tools automatically generate requirements based on
specific customer needs and provide for more seamless
cross-functional data sharing through the entire
lifecycle of a program, from engineering, to drawings,
to work instructions, parts manufacturing, inspections,
and on to shipment.

New Technology Developments
The aerospace and defense industry continues to
create safer, lighter, more fuel efficient and reliable
aircraft, and Triumph has made significant investments
in new technology and innovation to enable our
customers to achieve challenging mission requirements.

Triumph remains steadfast in its commitment to
continuous improvement in our manufacturing
processes, automation, Lean initiatives, digital
enhancements, and new technologies, such as additive
manufacturing, electric actuation and control, high
temperature composites, and thermoplastics to
enhance aircraft performance.

A good example is Triumph’s patented aft panel drive
mechanism (APDM) solution, which was developed
for the Bombardier Global 7000 high lift system. The
APDM is a new solution that improves efficiency on the
flap system and enables a higher performing aircraft.
The APDM extends the flap conically to create a larger
surface area, which increases lift and allows operation
on shorter runways, such as the London City Airport.

14 | Triumph Group

We are better positioned
than ever to provide
design expertise,
integrated systems and
total lifecycle solutions
well into the future.
With our businesses
working together today
as One Company,
Triumph is making it
easier and more efficient
for customers to do
business with us.

Total Lifecycle Support
Triumph’s extensive capabilities enable us to add value
through every stage of the aircraft life cycle, providing
a seamless transition from design to end of useful life
of the aircraft, and it remains a key differentiator for
our company.

Triumph’s Product Support business provides
excellent support, repair and overhaul of both

aircraft accessories and structures, working in close
partnership with aircraft operators around the
world. The knowledge gained through supporting
aircraft fleets enables us to provide superior design
improvements to new aircraft, based on our working
knowledge of how parts perform in the field.

Our close partnership with our OEM customers
enables them to rely on the specialized and detailed
knowledge provided by our Product Support
business to best maintain and repair aircraft
structures and components once they’ve been
delivered to the OEM’s airline customers.

With the next generation aircraft programs
entering their maintenance cycles and new aircraft
entering the global fleets, we are excited about

The rigor with which we support our customers,
helping them solve their most challenging problems,
is why Triumph is recognized as a leading supplier in
the industry and has earned us multiple accolades.

In an effort to better meet customer needs,
we also strive to identify opportunities to act as
supply chain integrators, strategically outsourcing
production to world-class partners as required.
Through these strategic outsourcing relationships,
we are leveraging the strengths of our partners to
produce parts more efficiently. They focus on what
they do best, and we focus on what we do best. As
Triumph efficiently manages the global supply chain,
we relieve our customers of the burden of managing
multiple suppliers.

the opportunities that lie ahead for Triumph Product
Support. We are nimble, customer-focused and a more
cost-effective independent third-party solution for
both accessories and structures.

Customer Focus
Adding value to our customers is of the utmost
importance to Triumph. It’s reflected in what we
deliver to our customers (our portfolio of products
and services), how we deliver it (with quality and zero
defects), and when we deliver it (on-time).

From left to right:
Product Support
Triumph Aviation Services
Austin, Texas
(customer site)

Aerospace Structures
Metallic & Composite
Components
Milledgeville, Georgia

Integrated Systems
Electronics & Control
West Hartford, Connecticut

The Next 25
One Triumph is not a destination; it’s a journey — and
we are “all in.” With an optimistic industry outlook, we
continue to shape our portfolio and evolve, making
the necessary adjustments to achieve profitable and
sustainable growth.

In the past 25 years, we have become more in tune
with our customers’ needs and can now anticipate
problems and provide solutions proactively. We are
smarter, leaner and stronger. We are more efficient,
more capable and more unified. We have invested in
our people, our processes and our communities.

We have set our sights on our future as the premier
value-driven partner from design to aftermarket.
We are ramping up and ready for the next 25 years
and beyond.

Annual Report 2018 | 15

O U R V I S I O N
We aspire to be the premier design,

manufacturing and support company

whose comprehensive capabilities,

integrated processes and innovative

employees advance the safety and

prosperity of the world.

O U R M I S S I O N
As One Team, we partner with

our customers to triumph over

the hardest aerospace, defense

and industrial challenges, enabling

us to deliver value to our shareholders.

O U R V A L U E S

• Integrity

• Continuous Improvement

• Teamwork

• Innovation

• Act with Velocity

16 | Triumph Group

S T O C K H O L D E R I N F O R M A T I O N

Triumph Group, Inc.
Corporate Headquarters
899 Cassatt Road
Suite 210
Berwyn, PA 19312
610-251-1000
www.triumphgroup.com

Annual Meeting
July 11, 2018 at 9:00 a.m. EDT
Armed Forces Benefit Association
The Charles C. Blanton Building
909 North Washington Street
Alexandria, VA 22314

Financial Information
A copy of Triumph Group’s Form 10-K
filed with the Securities and Exchange
Commission may be obtained without
charge upon written request. Requests for
Triumph Group’s 10-K or other stockholder
inquiries should be directed to:
Sheila G. Spagnolo
Vice President, Tax and Investor Relations
Triumph Group, Inc.
899 Cassatt Road
Suite 210
Berwyn, PA 19312
610-251-1000

Fiscal 2018 Stock Prices
Per Common Share
High $34.80
Low $19.65
Year-End $25.20
Common Stock
Triumph Group Common Stock
is listed on the NYSE.
Ticker symbol: TGI

Independent Auditors
Ernst & Young LLP
2005 Market Street
Suite 700
Philadelphia, PA 19103

Transfer Agent
Computershare, Inc.
P.O. Box 505000
Louisville, KY 40233-5000

Within the U.S., Canada and Puerto Rico:
800-622-6757

Outside the U.S., Canada
and Puerto Rico: 781-575-4735

TDD/TTY for hearing impaired:
800-952-9245

E-mail: web.queries@computershare.com
www.computershare.com/investor

Equal Opportunity at Triumph Group
Triumph Group 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, Triumph Group 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
Triumph Group’s Securities and Exchange Commission
filings, including its Form 10-K for the fiscal year
ended March 31, 2018.

Certifications
The certifications by the Chief Executive Officer and
Chief Financial Officer of Triumph Group required
under Section 302 of the Sarbanes-Oxley Act of 2002
have been filed as exhibits to Triumph Group’s 2018
Annual Report on Form 10-K. In addition, on August
14, 2017, 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
Triumph Group of NYSE corporate governance listing
standards, as required by Section 303A.12(a) of the
NYSE Corporate Governance Rules.

899 C A SSATT ROAD | SUITE 2 10 | B ERWY N | PA | 1931 2 | 610.251.1000 | WWW.TRIUMPHGROUP.COM