Waste prevention and reduction At the core of our business is the responsible use of resources within Our Parts Supply business acquires used parts from various sources, the aviation industry. We repair aircraft and equipment, extending including airlines, leasing companies and other financial institutions. not only the lifespan of airplanes but the useful life of their parts. We We often purchase whole aircraft and engines for purposes of believe our business model is intrinsically linked to preventing and disassembly and part-out. AAR outsources teardowns to third-party reducing waste within the aviation industry. contractors (typically members of the American Fleet Recycling Association) and provides a pull list for parts based on the specific As the largest independent MRO provider in North America, we airframe or engine. Our goal is to remove, repair and reuse or resell repair, rebuild and refurbish all aspects of an aircraft as needed as much of a teardown as possible. If we cannot reuse or resell to for our global customer base. Our Parts Supply business, which our global customer base, then material may be recycled or sent for maintains one of the industry's largest inventories of serviceable, proper disposal. Instead of going to landfills, some materials can be overhauled and repairable airframe parts, focuses on extracting as turned into other usable items. We also sometimes donate parts and much value as possible from the parts it acquires with the intent materials to be used as furniture, art or for educational materials. to refurbish, recertify and resell. Of the approximately 1.6 million parts available in the PAARTSSM Store, approximately 59% are used serviceable material (USM) parts. Our purpose and business strategy AAR’s business model centers around repairing equipment rather align with, and contribute to, than discarding it. Whether through maintenance and repair global initiatives to substantially of aircraft or extracting and refurbishing parts, our businesses reduce waste generation, including support sustainable consumption and production of aircraft and the United Nations Sustainability equipment, substantially preventing and decreasing waste – and Development Goals – Goal 12. also reducing the aviation industry’s global footprint. Donation of parts to Museum of Science & Industry Chicago, IL (2021) 14