AMERICAN AXLE & MANUFACTURING HOLDINGS INC

Appendix A

Non-GAAP Reconciliation

AAM has included in the proxy statement adjusted EBITDA, adjusted EBITDA margin, Operational Cash Flow and adjusted Free Cash Flow, which are financial metrics used in the AAM Incentive Compensation Program for Executive Officers (the Program) and the 2018 Omnibus Incentive Plan (the Plan). These metrics are non-GAAP financial measures. Such information is reconciled to its closest GAAP measure in the tables below in accordance with SEC rules.

Management believes these non-GAAP financial measures are useful to both management and AAM's shareholders in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes. Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, non-GAAP financial measures, as presented by AAM, may not be comparable to similarly titled measures reported by other companies.

(1) For purposes of calculating performance under the AAM Annual Incentive Program for Executive Officers, an adjustment, as permitted by the Program, was made to Adjusted EBITDA, Net Sales, Adjusted EBITDA margin and Operational Cash Flow for the year ended December 31, 2023. This adjustment offsets the unfavorable impact of the UAW Work Stoppage that occurred in the last several months of 2023. The Committee approved this adjustment as the impact of the work stoppage was outside of management's control and there was no practical opportunity for the industry and the Company to offset its negative impact on 2023 performance.

(2) For purposes of calculating performance under the 2018 Omnibus Incentive Plan, an adjustment, as permitted by the Plan, was made to Adjusted Free Cash Flow for the year ended December 31, 2023. This adjustment offsets the unfavorable impact of the UAW Work Stoppage that occurred in the last several months of the 36 month performance period of the 2021 awards. The Committee approved this adjustment as the impact of the work stoppage was outside of management's control and there was no practical opportunity for the industry and the Company to offset its negative impact on 2023 performance.