Investor Relations Presentation First Quarter 2021 (Published June 30, 2021) 1 Safe Harbor Statement The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to 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 the statements 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 variants of the virus and the pace and availability of vaccines, mitigating efforts deployed by government agencies and the public at large, and the overall impact from such outbreak on economic conditions, financial market volatility and our business, including but not limited to the operations of our manufacturing and other facilities, our supply chain, our distribution processes and demand for our products and the corresponding impacts to our net sales and cash flows; increases in cost, disruption of supply or shortage of raw materials or components used in our products, including as a result of the COVID-19 pandemic; risks related to our substantial indebtedness; our participation in markets that are competitive; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs; the concentration of our net sales in our top five customers and the loss of any one of these; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending; risks associated with our international operations, including increased trade protectionism; general economic and industry conditions; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers; and our intention to pay dividends and repurchase shares of our common stock. Allison Transmission cannot assure you that the assumptions made in preparing any of the forward- looking statements will prove accurate or that any long-term financial goals will be realized. All forward-looking statements included in this presentation speak only as of the date made, and Allison Transmission undertakes no obligation to update or revise publicly 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 weight on certain forward-looking statements pertaining to potential growth opportunities, long-term financial goals or the value we currently ascribe to certain tax attributes set forth herein. Actual results may vary significantly from these statements. Allison Transmission’s business is subject to numerous risks and uncertainties, which may cause future results of operations to vary significantly 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, 2020. 2 Business Overview 3 Allison Transmission at a Glance Leading designer and manufacturer of vehicle propulsion solutions for commercial and defense vehicles – World’s largest manufacturer of medium- and heavy-duty fully-automatic transmissions – A leader and established supplier of commercial-duty electrified propulsion systems Premier brand, offering superior performance, frequently specified by end users – Premium price component – Differentiated technology – Lower total cost of ownership Well positioned for revenue and earnings growth – Further adoption outside North America – Expanding addressable market – Funded growth opportunities in asset light business model Strong cash flow generation and well-defined capital allocation policy 4 Allison Transmission at a Glance LTM(1) Net Sales by End Market Parts, Support Equipment and Other 22% Outside North America North Off-Highway America 2% On-Highway 52% Outside North America On-Highway 14% Defense 9% North LTM(1) Net Sales: $2.0 billion America Off-Highway (1)LTM 3/31/2021 1% 5 North America On-Highway End Market Underserved Core Addressable Market Underserved Class 8 Class 1-3 Class 8 Class 8 Tractor Class 4-5 Motor Home School Bus Class 6-7 Straight Metro1 (Linehaul) Vehicles Weight < 14 lbs 14 – 19 lbs 16 – 33 lbs 16 – 33 lbs 19 – 33 lbs 33 lbs+ 33 lbs+ 33 lbs+ (000s of lbs) Industry Units Produced 9,809,392 114,352 14,316 29,553 78,014 66,297 46,443 101,466 (2020) Allison Share 0% 14% 47% 84% 75% 80% 8% 0% 2020 ~30-40% of Allison’s North America On-Highway market volume is driven by municipal spending, reducing end-market volatility Multi-year opportunity to gain share in Class 4/5 with medium-duty commercial truck launches by Chevrolet, Navistar and Isuzu, exclusively with the Allison fully-automatic Opportunity to further grow share in Class 6/7 with the all-new Mack MD Series commercial truck, exclusively with the Allison fully-automatic Growing opportunity in Class 8 Metro(1)(2) and Tractor markets with the award-winning Allison 3414 Regional Haul SeriesTM fully- automatic transmission, with proprietary xFE and FuelSense® 2.0 technology, launched with Navistar in July 2020(3) Note: Analysis excludes Allison’s Transit/Coach Bus and Electric Hybrid Transit Bus volume. Source: Class 1-3 from WardsAuto North America Production (December 2020); Core Addressable Market and Class 8 Tractor from Allison and ACT Research State of the Industry (January 2021). 1. “Metro” is a term for tractors that are used in urban environments, currently representing ~30% of the Class 8 tractor market. 2. Market opportunity for the 3414 Regional Haul Series (RHS) is approximately 25,000 units within the Class 8 Metro segment. 3. Upcoming releases for the 3414 RHS include the Freightliner M2 112 and the Cascadia 6 Strategic Priorities Expand global market leadership – Capitalize on improving developed markets demand – New vocational offerings to expand addressable market – Fully integrated electrified propulsion solutions Emerging markets penetration – Automaticity, fuel efficiency and safety trends – Lower total cost of ownership – Increasing number of vehicle releases Continued focus on new technologies and product development – Alternative fuels and electrified propulsion – Advanced fuel efficient and emissions reduction technologies – Enhancements to core technologies for new products and variants Deliver strong financial results – Exploit capacity availability and asset light business model – Earnings growth and cash flow generation – Focus on margin sustainment – Well-defined capital allocation policy 7 Industry Leading EBITDA Margin EBITDA Margin1 40.0% 35.2% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% . Roper Gentex Graco Sensata Rockwell Parker Eaton Donaldson Cummins Hannifin 1. Fiscal year 2020 peer EBITDA provided by FactSet. EBITDA included above may not be consistent with such entity’s reported EBITDA or Adjusted EBITDA, if available. EBITDA Margin: EBITDA or Adjusted EBITDA divided by net sales. *See appendix for comments regarding the presentation of non-GAAP financial information. 8 Increasing Returns Over Successive Troughs Adjusted EBITDA Net Income (millions) (millions) $299 $732 $215 $644 $501 -$324 Common Shares Outstanding1 EPS2 (millions) $2.62 181 164 $1.28 112 -$1.79 (1) End of period common shares outstanding (2) Basic earnings per share 9 Leading Technology and Innovation Next Generation of Commercial Propulsion New Allison eGen Family of Electric Products Allison eGen PowerTM Electric Axle Solutions Allison eGen FlexTM Electric Hybrid Propulsion 10 Next Generation of Commercial Propulsion The complexities of propelling and maneuvering an electric truck through different terrains and changing environments, presents incremental growth opportunities for an established and experienced propulsion supplier such as Allison • Expertise in commercial propulsion, vehicle controls and vocational duty cycles • Deep experience in systems integration, battery management