Twin Disc 8K Regulation FD Disclosure | TWIN 8 Nov 10

Twin Disc, Incorporated

WE PUT HORSEPOWER TO WORK ™

Twin Disc, Incorporated

November 10, 2010

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 2010 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.

Twin Disc, Incorporated

November 10, 2010

Twin Disc At A Glance

• Founded in 1918

• Headquartered in Racine, WI

• ≈913 employees (FYE ‘10)

• FY10 Revenues of $228M
FY09 Revenues of $296M

• We are a global company

– Well-known customers
around the world

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

– World-wide distributor
network

– 65% of fiscal 2010 sales to
international markets

Manufacturing location (# of facilities in each location)

Company owned distribution/service location

Purchasing/sourcing offices

Twin Disc, Incorporated

November 10, 2010

FY 2010 Financial Highlights

$ millions

• Quarterly sequential sales &
earnings improvement

– Despite challenges, profitable for
the full fiscal year

• Key Markets

– Mega Yacht and European markets
remained soft throughout fiscal 2010

– ARFF, Military and Commercial Marine
were steady

– Sales in the Pacific Rim continued
strong, at near record levels

– Oil & gas markets experienced strong
growth in 2nd half of fiscal year

Twin Disc, Incorporated

• Generated $35 million of cash
from operating activities

• Reduced debt by $19.6 million,
or 39%

– Cash also increased $5.8 million, or 44%,
to $19.0 million

• $25 million cost reduction and
avoidance program fully implemented

– announced in 2009’s 4th Fiscal
Quarter

November 10, 2010

FY 2010 Financial Highlights

$ millions

Twin Disc, Incorporated

November 10, 2010

Net Sales & Net Earnings
(First Fiscal Quarter)

• Sales up 30%

– Oil & gas markets strong

– Experienced continued softness in
mega yacht and European markets

– Prior year: seasonal and temporary
plant shutdowns impacted Q1
shipments

– Asian markets continued at record
levels

• $2.7 million profit, up $5.1 million

– Prior year reflects extended plant
shutdowns in Q1 at European and
US manufacturing locations

Twin Disc, Incorporated

November 10, 2010

Marine & Propulsion Systems

• Pleasure Craft market
continues soft worldwide

– However, building share of
market with new technology

• Work Boat market steady

– Europe soft

– North America moderating

– Asia-Pacific growing

• Patrol Boat market
experiencing global growth

– Asian market experiencing
strong growth

Twin Disc, Incorporated

November 10, 2010

• Industrial markets showing
modest growth

– Agriculture, irrigation,
recycling and construction

• ARFF and Military holding
steady

– ARFF: Continue to
increase market share with
‘pump & roll’ transmissions

• Oil & Gas markets picking up

– Orders increasing globally
for 8500 & air clutches

– New 7500 series

Twin Disc, Incorporated

November 10, 2010

2006

48% International Sales

65% International Sales

Twin Disc, Incorporated

November 10, 2010

Managing Our Cost Structure

CAPEX

• Investing in core competencies

• Spent over $64 million over past 6 yrs

Twin Disc, Incorporated

Sourcing Offices

November 10, 2010

Managing Our Cost Structure

Low Cost

Lower Cost

Corporate HQ/Mfg

Mfg locations

Twin Disc, Incorporated

November 10, 2010

What Differentiates Us?

• Technology

– Oil & Gas

• 8500 Series

– ARFF

• “Pump & Roll”

– Military

• “Legacy” Contracts

– Marine

• Patented QuickShift®

• Dynamic Positioning/DPII

• Rolla CFD

Twin Disc, Incorporated

November 10, 2010

What Differentiates Us?

• 90+ Years of Proven Application Know-How

• Niche Market Focus

• Product/Market & Geographic Diversity

• Core Manufacturing Capabilities

Mfg location

Co.-owned dist.

3rd Party dist.

Service dealers

Twin Disc, Incorporated

Looking Ahead

Twin Disc, Incorporated

November 10, 2010

FY04

FY05

FY06

FY07

$ millions

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

FY08

FY09

FY11

FY10

+65%

Twin Disc, Incorporated

November 10, 2010

Fiscal Year 2011 Outlook

• Mega Yacht & Europe - weakness expected to continue

• Industrial, ARFF & Military will remain stable, modest
growth

• Oil & Gas - experiencing strong growth in demand

• Patrol Boat market expanding

• Asian market continues at record levels

• New product launches: 7500 & Express Joystick System®

• Continued focus on working capital management

• Expect continued improvement during fiscal year

Twin Disc, Incorporated

WE PUT HORSEPOWER TO WORK ™

Twin Disc, Incorporated

Appendices

Twin Disc, Incorporated

November 10, 2010

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

Appendix I

Twin Disc, Incorporated

November 10, 2010

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,
Groupe Bourbon)

• Competition: ZF, Reintjes /
Kamewa, Hamilton

Appendix II

Twin Disc, Incorporated

November 10, 2010

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, EJS

• Channels: Engine OEMs &
dealers, naval authorities & boat
builders

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

• Competition: ZF / Kamewa

Appendix III

Twin Disc, Incorporated

November 10, 2010

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

We have been very successful “bundling” more marine products

• Increasing content and value on each vessel

• Working directly with the shipyards

• Industry expert on vessel performance and handling

Appendix IV

Twin Disc, Incorporated

November 10, 2010

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

Appendix V

Twin Disc, Incorporated

November 10, 2010

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, Rosenbauer,
Oshkosh, Tatra / BJ Services,
Cisco High-Lift, Crown Energy,
Enerflo, Fractec, Trican, Tai’an

• Competitors: Allison, ZF

Appendix VI

Twin Disc, Incorporated

November 10, 2010

$ millions

% sales

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

Appendix VII

Twin Disc, Incorporated

November 10, 2010

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 VIII