Gabelli

1
Gabelli Company Ninth Annual Aircraft Supplier
Conference September 4, 2003
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Forward Looking Statements

• Except for statements of historical fact, the
  statements contained in this document are
  forward-looking statements as such term is
  defined in the Private Securities Litigation
  Reform Act of 1995.
• These forward-looking statements include
  statements regarding intent, belief or current
  expectations of the Company and its management.
  Such forward-looking statements are not
  guarantees of future performance and involve a
  number of risks and uncertainties that may cause
  the Companys actual results to differ materially
  from those indicated by such forward-looking
  statements.
• The factors that could cause actual results to
  differ materially from those indicated by such
  forward-looking statements include loss of key
  suppliers or significant customers, termination
  or curtailment of material contracts, changes in
  demand or prevailing market prices for products
  and services, changes in economic conditions,
  increased competition, failure to execute or
  realize anticipated benefits from agreements,
  changes in our business strategy or development
  plans, changes in government regulations and
  policies, limited operational flexibility due to
  leverage and changes in the aviation industry due
  to terrorist attacks.

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Aviall Today
Inventory Locator Service (ILS)
Aviall Services

• Largest independent global
• aftermarket provider of new
• aviation parts and supplies
• Global market coverage
• DFW central warehouse
• 35 stocking locations

• Leading independent electronic aviation
  material marketplace
• Strong brand name
• Information business
• 24 years of Profitable market leadership and
  expertise
• Independent product-neutral market

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Financial Overview
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Historical Financials
Revenue (1)
Gross Profit
944.9
1,000.0
22.3
180.0
25.0
161.9
877.3
21.2
156.8
CAGR 34
150.0
20.0
108.5
107.3
120.0
17.9
15.0
506.2
17.1
485.9
(US in Millions)
(US in Millions)
500.0
90.0
10.0
60.0
5.0
30.0
0.0
0.0
0.0
2000
2001
2002
LTM
2000
2001
2002
LTM
(1) 2002 and LTM pro forma for 74 million in
direct sales by Rolls-Royce in H1 2002
Selling Administrative Expense
EBITDA (2)
90.0
15.0
120.0
20.0
17.3
79.0
16.9
75.3
96.2
95.4
87.7
82.0
90.0
15.0
7.4
8.6
60.0
10.0
10.9
8.4
10.2
37.2
7.2
(US in Millions)
(US in Millions)
60.0
10.0
35.1
30.0
5.0
30.0
5.0
0.0
0.0
0.0
0.0
2000
2001
2002
LTM
2000
2001
2002
LTM
(2) EBITDA is earnings from continuing operations
before depreciation, amortization, interest and
related expense, and tax expense
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Aviall Has Substantially Grown Revenues
Revenues
( in millions)

• Includes direct RR sales

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Improving EBITDA
EBITDA and Margin
15.0
( in millions)
10.0
EBITDA
EBITDA Margin
8.6
8.4
7.4
7.2
5.0
7.0
0.0
1/ Includes direct RR sales 2/ Excludes 1.7
million impairment loss
EBITDA is defined as operating income plus
depreciation and amortization
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Strong Financial Performance
( millions)
1/ 2003 numbers exclude 1.7 million impairment
loss
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Strong Balance Sheet
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Aviall YTD Stock Performance

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Aviall Services
Industrys Most Extensive New Product Basket that
fits in a box from a single source

• Airframe component assemblies
• Undercarriage components
• Engines and related engine spares
• Broad range of chemicals consumables
  communications lighting
• Product repair services (PRS)

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Dallas Warehouse
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Wide Geographic Reach
Europe Amsterdam Stocking Location 6 outside
salespeople 7 inside salespeople 14 sales
professionals
Asia Hong Kong Singapore Stocking Location 9
outside salespeople 12 inside salespeople 25
sales professionals
The Americas Dallas Headquarters 27 Stocking
Locations 55 outside salespeople 130 inside
salespeople 202 sales professionals
Australia/New Zealand 7 Stocking Locations 11
outside salespeople 14 inside salespeople 32
sales professionals
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Diversified Revenue Base - Broad Product Offering
Revenue by Market Segment (1)
Diversified Revenue Base

• Military / Government
• General Aviation / Corporate
• Commercial Airlines
• Regional Airlines
• Brokers
• Broadest Product Offering in the Industry
• From Engine Parts to Sealants
• Over 215 OEM suppliers
• More than 440,000 Unique Line Items
• Customers Include
• Fixed Base Operators
• Airlines
• Repair and Overhaul Shops

Commercial Airline
21

General Aviation / Corporate
Government / Military
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54
(1) Based on 1H 2003 Aviall Services net sales
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Avialls StrategySuperior Value Proposition
Example of Recent Contract Results

• Aviall increases sales
• Avialls superior demand forecasting enhances
  production planning and inventory efficiencies
• Avialls systems significantly enhance supplier
  marketplace intelligence gathering and assists
  end customers with reducing working capital
  requirements
• Avialls parts availability replaces third-party
  non-OEM marginal repairs and non-OEM (PMA) parts
• Aviall provides entire aftermarket package for
  lower cost

Aviall takes over
Service Level lt60 99
Backlog 15 lt2
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T56 Product Line

• Installed base of over 8,000 active engines with
  military and commercial aircraft in over 70
  countries
• T56 part revenues (80 govt/military)
• 2001 (prior to Aviall) 200 million
• 2002 forecast 250 million
• 2002 Actual gt345 million
• U.S. Military currently projects T56 operations
  through 2040

C130 image courtesy of Aviation Week Space
Technology
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Technology

• Significant and on-going strategic investments in
  an integrated best-of-breed integrated suite of
  technologies only to manage distribution and
  supplied by
• BroadVision Web enablement
• Siebel CRM Customer management
• New Era of Networks (Sybase/NEON)
• Xelus - Inventory management
• Catalyst Warehouse
• Lawson - ERP
• Recognized as technology leader in industry
• ILS electronic marketplace awarded Best of the
  Web by Forbes for three consecutive years
• Info World 100 list, and a ComputerWorld Honors
  Program Laureate
• Competitive advantage and barrier to entry which
  minimizes pressure on operating standards
• Obsolescence, product specification change

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Commercial Airline Risk

• No reliance on any one commercial airline or the
  sector
• Growing Regional Airline segment operating larger
  and more sophisticated aircraft, an historical
  niche
• Developed a JIT resource countering demands
  for short-term price reductions
• Credit exposure management refined over 30 years
  with small operators
• Low risk sourcing strategy employed to minimize
  cost and hence product risk

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Inventory Locator Service (ILS)
ILS Statistics

• Over 4,000 organizations subscribe with more than
  10,000 users
• 50 million SKUs representing over 5 billion parts
• 100 million line items of government reference
  info (MCRL).
• About 3 terra bytes of information under
  management
• More than 45,000 accesses each business day
• Average of 12,000 RFQs and faxes sent each
  business day

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ILS Business Unit
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Products and Services
2002 Revenues by Product
Supplier Listings
Other Value- Added Services
Government Reference Information
Subscription Fees
2002 Total Revenues 27.2 million
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Aviall Services and ILS Clear Market Leaders
Market Ranking Parts Revenue
Leading Market Position

• Reputation for service, reliability and useable
  technology
• ILS - Universally recognized standard for
  aftermarket parts search and availability
• Aerospace industrys largest independent
  product-neutral market-maker and information
  service

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Positioned for Growth

• New Products and Services
• Aviall Services actively seeking major new
  contracts with major airframe and engine OEMs
• ILS continuing to implement new services, seeking
  new markets
• Acquisitions
• Expansion of product/service offerings
  complementary to current businesses
• Distribution industry roll-up not practicable
• 200 million of eight year bonds issued on June
  30th at 7 5/8
• A portion discharged the outstanding 81 million
  of 14 Senior Notes due 2007
• The Company has approximately 194 million of
  availability on its outstanding line of credit
• 2003 Earnings Guidance
• Restated earnings per share of 0.94 to 0.98
  (basic and diluted)
• EBITDA forecast of 85.0 million

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Investment Profile

• Strong Brand Names
• Recognized products
• Very small product risk and product-value-added
  business
• Process management orientation
• Limited operating process diversity
• Strong management team and controls
• Solvent, stable
• Large military product volume

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