Allison Transmission: Q4 2021 Investor Relations Overview

Investor Relations Presentation

Fourth Quarter 2021 (Published March 7, 2022)

Safe Harbor Statement

The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the United States Private Securities Litigation Reform Act of 1995). The words “believe”, “expect”, “anticipate”, “intend”, “estimate” and other expressions which are predictions or indicate future events and trends and which do not relate historical matters not identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect the good faith beliefs of management, forward-looking statements should not be relied upon because they involve known and unknown risks, uncertainties and other factors, which may cause results, actual performance or achievements differ materially from anticipated future results. , performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: the duration and spread of the COVID-19 pandemic, including new virus variants and the timing and availability of vaccines and reminders, mitigation efforts by government agencies and the general public, and the overall impact of such an outbreak on economic conditions, financial market volatility and our business, including, but not limited thereto, the operations of our manufacturing and other facilities, the availability of labor, our supply chain, our distribution processes and the demand for our products and the corresponding impacts on our net sales and flows cash ; increased costs, disruption of supply or shortage of labour, freight, raw materials or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of the pandemic of COVID-19; our participation in competitive markets; our ability to prepare for, respond to and successfully achieve our objectives related to technological and market changes, competitive threats and changing customer needs, including with respect to hybrid electric and fully electric utility vehicles ; the highly cyclical industries in which some of our end users operate; the uncertainty of the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of one of them; failure of markets outside of North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; US and foreign defense spending; risks associated with our international operations, including increased trade protectionism; general economic and industrial conditions; the discovery of defects in our products, resulting in delays in the launch of new models, recall campaigns and/or increased warranty costs and reduced future sales or damage to our brand and reputation; our ability to effectively identify, complete and integrate acquisitions and collaborations; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our business or that of our major customers or suppliers; and risks related to our indebtedness.

Allison Transmission cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove to be correct or that the long-term financial objectives will be achieved. All forward-looking statements included in this presentation speak only as of the date on which they were made, and Allison Transmission undertakes no obligation to publicly update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. In particular, Allison Transmission cautions you not to place undue importance on certain forward-looking statements relating to potential growth opportunities, long-term financial goals, or the value we currently place on certain tax attributes set forth herein. Actual results may differ materially from these statements.

Allison Transmission’s business is subject to numerous risks and uncertainties, which could cause future results of operations to differ materially from those presented herein. Important factors that could cause actual results to differ materially are discussed in Allison Transmission’s Annual Report on Form 10-K for the year ended December 31.2021.

Allison Transmission at a Glance

• Leading designer and manufacturer of propulsion solutions for commercial and defense vehicles
• • The world’s largest manufacturer of means and heavy duty automatic transmissions
  • A leader and established supplier of commercial electrified propulsion systems
• Premier brand, delivering superior performance frequently specified by end users
• • Premium price component
  • Differentiated technology
  • Reduced total cost of ownership
• Well positioned for revenue and earnings growth
• • Later adoption outside North America
  • Expand the addressable market
  • Funded growth opportunities in an asset-light business model
• Strong cash generation and well-defined capital allocation policy

Allison Transmission at a Glance

2021 net sales by end market