Twin Disc (TWIN) 8-K Regulation FD Disclosure

Twin Disc, Incorporated

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February 3, 2009

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Twin Disc, Incorporated

Safe Harbor Statement

This presentation contains statements that are forward-looking
within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended.These statements are based on
management’s current expectations that are based on
assumptions that are subject to risks and uncertainties.Actual
results may vary because of variations between these
assumptions and actual performance.Investors are referred to
Twin Disc’s fiscal year 2008 Annual Report and Form 10-K,
“Management’s Discussion and Analysis of Financial Condition
and Results of Operations - Forward-Looking Information,” which
outlines certain risks regarding the Company’s forward-looking
statements.Copies of the Company’s SEC filings may be
obtained from the SEC, and are available on Twin Disc’s web site
(www.twindisc.com), or by request from the Investor Relations
department at the Company.

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Twin Disc, Incorporated

Manufacturing

2

1

1

#

Manufacturing location (# of facilities in each location)

Company owned distribution/service location

Purchasing/sourcing offices

Twin Disc At A Glance

•Founded in 1918

•Headquartered in Racine, WI

•1,000+ employees

•FY08 Revenues of $332M

•We are a global company

–Well-known customers
around the world

–Mfg Operations in the U.S.,
Italy, Belgium, Switzerland
and Japan

–World-wide distributor
network

–61% of fiscal 2008 sales to
international markets

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Twin Disc, Incorporated

Corporate Profile - Market Diversity

Pleasure Craft Market:

•Target Markets: High speed
planing and displacement yachts
from 50’ to 150’, diesel powered

•Products:Transmissions,
Surface Drives, Propellers,
Steering/Thruster/Trim Systems,
Water Jets, Controls

•Channels: Engine OEMs &
dealers, & boat builders

•Customers: CAT, CMD, MAN,
MTU, Volvo / Azimuth, Baia,
Ferretti, Palmer Johnson, Riviera,
Sanlorenzo, Sunseeker

•Competition: ZF, Reintjes /
Kamewa /Side Power, Ultraflex

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Twin Disc, Incorporated

Corporate Profile - Market Diversity

Work Boat Market:

•Target Markets: planing and
displacement vessels from 30’ to
250’, diesel powered

•Products:Transmissions,
Propellers, MCD’s, Water Jets,
Controls

•Channels: Engine OEMs &
dealers, boat builders &
distribution

•Customers: CAT, Cummins,
IVECO, Mitsubishi, Volvo /
Damen / Sewart Supply
(operators: Secor, Tidewater)

•Competition: ZF, Reintjes /
Kamewa, Hamilton

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Twin Disc, Incorporated

Corporate Profile - Market Diversity

Patrol Boat Market:

•Target Markets: military, patrol
and coast guard vessels from 30’
to 90’, diesel powered

•Products:Transmissions,
Surface Drives, Propellers,
Steering/Thruster/Trim Systems,
Water Jets, Controls

•Channels: Engine OEMs &
dealers, & boat builders

•Customers: CAT, CMD, MAN,
MTU, Volvo / Israeli Navy, Turkish
Coast Guard, USCG, US Navy,
RCMP

•Competition: ZF / Kamewa

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Twin Disc, Incorporated

QuickShift®Transmissions

Electronic Controls

Bow Thrusters

Anchor Winches

Gangways

Trim Tabs, Stern Thrusters

Power Steering

Marine Transmissions, Propulsion & Boat Management Systems

Corporate Profile - Market Diversity

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Twin Disc, Incorporated

Corporate Profile - Market Diversity

Industrial Transmissions:

•Target Market:Off-highway and
all-terrain specialty vehicles,
diesel powered

•Products:Powertrain
components - - 400 to 3,000 HP

•Channel:OEM vehicle mfrs.

•Customers: BAE, Oshkosh, Tatra
/ BJ Services, Cisco High-Lift,
Crown Energy, Enerflo, Fractec,
Trican

•Competitors: Allison, ZF

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Twin Disc, Incorporated

Corporate Profile - Market Diversity

Industrial Products:

•Target Market:Heavy duty
industrial disconnect applications

•Products: Mechanical & hydraulic
clutches, PTOs & pump mount
drives, 100 - 2,500 HP

•Channels:Distribution & OEMs

•Customers: Bandit, Morbark,
Peterson Pacific / OEM engine
dealers

•Competitors: Funk, NACD, PT
Tech, Stiebel, Transfluid, WPT

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Twin Disc, Incorporated

2006

2007

2008

48% International Sales

61% International Sales

USA

Italy

Rest of

World

Corporate Profile - Geographic Diversity

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Twin Disc, Incorporated

What Differentiates Us?

•Technology

–Land-Based

•8500 Series

•“Pump & Roll”

•“Legacy” Contracts

•Electronic Control Systems

•Global Distribution and Service Network

•Product/Market & Geographic Diversity

•Niche Market Focus

•90 Years of Proven Application Know-How

•Core Manufacturing Capabilities

–Marine

•QuickShift®

•Dynamic Positioning

•Rolla CFD

•Electronic/Hydraulic Boat
Management Systems

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Twin Disc, Incorporated

Managing Our Cost Structure
Investing in Core Competencies

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Twin Disc, Incorporated

Lower Cost

Low Cost

Sourcing Offices

Managing Our Cost Structure
Global Sourcing

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Twin Disc, Incorporated

FY 2009 First Half Highlights

•Major Markets Experience Varied Results

–Shipment and order weakness emerged for mega yachts during second quarter

–Demand for oil and gas transmissions continued at soft levels

–Increased shipments and demand for industrial products continued through the
second fiscal quarter

–Shipments of land based transmission products for the Airport Rescue and Fire
Fighting (ARFF) and military markets were off slightly in the first half, although
backlog remained strong

–Commercial marine markets continued strong and improved versus year ago levels

•Gross margins at 27.9%, down from 31.6% for FY 2008

–Impacted by unfavorable product mix, higher material costs and increased domestic
pension expense

•Diluted EPS of $0.52, off record FY 2008 level of $0.81

•Six Month Backlog at end of 2nd Fiscal Qtr >> $106 million

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Twin Disc, Incorporated

$ millions

$ millions

* See Appendix III for reconciliation of TTM (trailing 12 month) figures to reported figures.

Net Sales & Net Earnings
(Fiscal Year)

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Twin Disc, Incorporated

$ millions

$ millions

Net Sales & Net Earnings
(Second Fiscal Quarter)

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Twin Disc, Incorporated

$ millions

$ millions

Net Sales & Net Earnings
(First Fiscal Half)

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Twin Disc, Incorporated

EBITDA
(See Appendices I & II for note on non-GAAP Financial Disclosures and a
reconciliation of net earnings to EBITDA)

$ millions

% sales

* See Appendix III for reconciliation of TTM figures to reported figures.

Twin Disc, Incorporated

Looking Ahead

February 3, 2009

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Twin Disc, Incorporated

FY04

FY05

FY06

FY07

$ millions

FY08

FY09

Corporate Six Month Backlog
(Orders to be shipped in the next 6 months)

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Twin Disc, Incorporated

Fiscal Year 2009/10 Outlook

•Cautious outlook in face of global turmoil

•Certain key markets will experience weakness

–Oil and gas and mega yacht markets softness expected to
continue into next fiscal year

•Other key markets expected to remain stable

–Commercial marine, military and airport firefighting and
rescue markets will continue stable

•Continue to control global spending

–Reduced FY 2009 CAPEX forecast to $10-$12 million, down
from prior estimate of $15-$17 million

February 3, 2009

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Twin Disc, Incorporated

Fiscal Year 2009/10 Outlook

•Technology differentiation/new products

•Opportunity for operating leverage continues

–Expanding global outsourcing

–Investing in core competencies

•Active Acquisition Program

•Active stock buyback program (Board
authorized repurchase of up to an additional
250,000 shares)

Twin Disc, Incorporated

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Twin Disc, Incorporated

Appendices

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Twin Disc, Incorporated

Non-GAAP Financial Disclosures

Financial information excluding the impact of certain significant items in this presentation are not measures that
are defined in U.S. Generally Accepted Accounting Principles (“GAAP”).These items are measures that
management believes are important to adjust for in order to have a meaningful comparison to prior and future
periods and to provide a basis for future projections and for estimating our earnings growth prospects.Non-
GAAP measures are used by management as a performance measure to judge profitability of our business
absent the impact of foreign currency exchange rate changes and acquisitions.Management analyzes the
company’s business performance and trends excluding these amounts.These measures, as well as EBITDA,
provide a more consistent view of performance than the closest GAAP equivalent for management and
investors.Management compensates for this by using these measures in combination with the GAAP
measures.The presentation of the non-GAAP measures in this presentation are made alongside the most
directly comparable GAAP measures.

Definition - - Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

The sum of, net earnings and adding back provision for income taxes, interest expense, depreciations and
amortization expenses:this is a financial measure of the profit generated excluding the above mentioned
items.

Appendix I
Non-GAAP Financial Disclosures

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Twin Disc, Incorporated

* See Appendix III for reconciliation of TTM figures to reported figures.

Appendix II
Reconciliation of Net Earnings to EBITDA

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Twin Disc, Incorporated

Appendix III
Reconciliation of TTM Data to Reported Quarterly Figures

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Twin Disc, Incorporated

Appendix IV
Fiscal Year Condensed Consolidated Statements of Operations

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Twin Disc, Incorporated

Appendix VI
2nd Fiscal Quarter Condensed Consolidated Statements of Operations

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Twin Disc, Incorporated

$243

$219

$186

$317

$332

Appendix VI
Net Sales by Segment

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Twin Disc, Incorporated

Appendix VII
Net Earnings by Segment (before Corporate Expense)

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Twin Disc, Incorporated

$ millions

% sales

Appendix VIII
Operating Cash Flows

Twin Disc, Incorporated

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