EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
Kaman Corporation (NASDAQ-GS: KAMN)
Kaman Corporation (NASDAQ-GS: KAMN)
KeyBanc Capital Markets
Industrial, Automotive and Transportation Conference
June 3, 2009
 
 
 
Slide 2
RECENT SIGNIFICANT EVENTS
 ü September 2007 - Neal Keating joined Kaman as President under a planned
 succession (assumed Chairman and CEO titles during 2008)
 ü December 2007 - Sold Music segment to Fender focusing the company on its core
 industrial distribution and aerospace businesses
 ü March 2008 - Reached settlement with Commonwealth of Australia, resolving
 helicopter program
 ü June 2008 - Acquired Brookhouse Holdings Limited (UK) establishing a European
 footprint in Aerostructures and diversify customer and platform base
 ü  2008 - Completed first acquisitions in industrial distribution since 2003
 
 
 
MANAGEMENT TRANSITION (Previous Experience)
Slide 3
 ü Neal Keating, Chairman, President and CEO
   (Hughes Supply, GKN Aerospace, Rockwell Collins, Rockwell Automation)
 ü Greg Steiner, President, Kaman Aerospace Group
   (GE Aviation/Smiths, Curtis-Wright, Rockwell Collins, Texas Instruments)
 ü Bill Denninger, Senior Vice President and CFO
   (Barnes Group, BTR Plc, ITT Corporation)
 ü Phil Goodrich, Vice President Business Development
   (Barnes Group, Ametek, General Signal, Seagram, Philip Morris)
 ü Rob Starr, Vice President and Treasurer
   (Crane Co., Aetna, Fisher Scientific Int’l, Salomon Smith Barney, Chase
  Securities)
 
 
 
Distribution:  
Industrial Distribution
2008 SALES $1.25 BILLION
 
 
 
2008 Sales $777 million
INDUSTRIAL DISTRIBUTION SEGMENT
 
 
 
Slide 6
INDUSTRIAL DISTRIBUTION SEGMENT
                       
                       
                     
                    
Third largest industrial distribution firm in $20 billion power transmission
market.
Strategy:
 ♦ Expand our geographic footprint in major industrial markets to enhance our
 position in the competition for national and regional accounts
 ♦ Broaden our product offerings to gain additional business from existing
 customers and new opportunities from a wider slice of the market
 
Customers:
 ♦ Broad cross section of industry with more than 50,000 customers served from
 local branches in 72 of the top 100 U.S. Industrial markets. Growing national
 account base.
 
 
 
Slide 7
ACQUISITIONS: Strategic Fit
 § Support corporate strategy of accelerating growth of KIT
 § Add additional product lines to our portfolio
 § Increase our capability to service national and regional customers
 § Add proven management teams and dedicated employees
 § Industrial Supply Corporation, Richmond, VA, acquired March 31, 2008
 • Adds $55 million in annual sales
 • Increases Kaman’s presence in Virginia and North Carolina markets
 § INRUMEC, Gurabo, Puerto Rico, Acquired October 3, 2008
 • Adds $13 million in annual sales from four branches in Puerto Rico
 • Provides a presence for Kaman in the important Puerto Rico market while avoiding the
 costs and time of building a greenfield operation to support national account growth
 
 
 
KIT Branch Location
Distribution Center
ISC Branch Location
INRUMEC Location
Slide 8
KAMAN INDUSTRIAL TECHNOLOGIES LOCATIONS
 
 
 
Slide 9
INDUSTRIAL DISTRIBUTION SEGMENT
 
 
 
AEROSPACE SEGMENT:
FOUR AEROSPACE BUSINESSES
2008 Sales $477 million
 
 
 
Slide 11
SPECIALTY BEARINGS DIVISION:
Bloomfield, CT and Dachsbach, Germany
Designs and manufactures proprietary self-lubricating
airframe bearings
Programs:
 ♦ Kaman products are used in nearly all military and
 commercial aircraft
Strategy:
 ♦  Continue to be the leading high performance specialty
 bearing company in the world by maintaining superior
 product performance through technology enhancement,
 application engineering expertise and continued lean
 manufacturing excellence
Business Mix (approximate):
 ♦  Commercial 75%, Military 25%
 ♦  OEM 60%, After-Market 40%
 
 
 
Slide 12
SPECIALTY BEARINGS: Lean Journey
 
 
 
Slide 13

     
      
      
      
      
                    
PRECISION PRODUCTS DIVISION:
Middletown, CT & Orlando, FL
Fuzing Segment: Middletown, CT and Orlando, FL
Manufactures safe, arm and fuzing devices for major missile and
bomb programs.
 ♦  Principal Missile programs: AMRAAM, ATACMS,
 Harpoon, Maverick, Standard and Tactical Tomahawk
 ♦ Principal Bomb program: Joint Programmable Fuze
 ♦ Division includes Measuring & Memory systems products.
Strategy:
 ♦ Become the established leader in bomb and missile fuzes,
 specialized memory products, precision measuring devices and
 electro-optic sensor systems for military and commercial
 applications
Principal customers:
 ♦ U.S. and allied militaries, Boeing General Dynamics, Lockheed
 and Raytheon.
Business Mix:
 ♦ Military 97%, Commercial 3%
 
 
 
Slide 14
HELICOPTERS DIVISION: Bloomfield, CT
Helicopters Segment: Bloomfield, CT
Full service helicopter subcontractor. Supports legacy SH-2G
Super Seasprite and K-MAX “Aerial Truck” helicopters.
Principal programs:
 ♦ Major maintenance and upgrades to Egyptian SH-2G(E)
 ♦ BLACK HAWK subcontract for Sikorsky
 ♦ Remarketing eleven SH-2G (I) helicopters
Strategy:
 ♦ Leverage systems knowledge and lean manufacturing to
 take advantage of emerging assembly/subcontracting and
 after-market/retrofit opportunities as helicopter prime
 manufacturers focus on system design, integration, and
 final assembly
Principal customers:
 ♦ ♦The governments of Egypt, New Zealand and Poland;
 Sikorsky and MDHI
Business Mix:
 ♦ Military 80%, Commercial 20%
 
 
 
Slide 15
AEROSTRUCTURES DIVISION:
Jacksonville, FL; Wichita, KS; and Manchester, UK
 Produces parts and subassemblies for Tier 1 and Prime
 Manufacturers; designs and builds mold and assembly tooling;
 and provides after-market support for UK MoD platforms
 ♦ Military: Boeing C-17, Sikorsky BLACK HAWK helicopter,
 Sikorsky MH-92 helicopter, Joint Strike Fighter (JSF), A-400M,
 A-10
 ♦ Commercial: Boeing 777 and 767, A330/340, new large wide-
 body program
 Strategy:
 ♦ Expand our global market position as a supplier of complex,
 composite and metallic structures and integrated subsystems
 for military and commercial aircraft
 Business Mix:
 ♦ Military 73%, Commercial 27%
 
 
 
Slide 16
 Talented, committed employees - Proven management team
BROOKHOUSE HOLDINGS, LTD.: Strategic Fit
 § Acquired June 2008, $55 million in annual sales
 § Accelerates growth and increases scale in Aerostructures market
 § Enhances our composite capabilities - RFI technology provides differentiator
 § Balanced portfolio of platforms and mix of business
 • 47% Commercial, 53% Military
 • 66% OEM, 34% Repair and Overhaul
 § Adds a world class tooling capability to Kaman’s portfolio
 § Provides entry into higher margin aftermarket services business
 
 
 
Slide 17
 Complementary platform positions - improves diversification
AEROSTRUCTURES: Platforms
 
 
 
AEROSTRUCTURES WICHITA UPDATE
Slide 18
■ Recovery Actions
 r Installed new leadership
 r Invested in people, tooling, and equipment to rebuild infrastructure
 r Holding monthly operating reviews on-site and tracking key operating metrics to
 ensure progress
■ Results
 r Resumed production for major customer
 r AS9100 certification reinstituted
 r NADCAP audit successfully completed in Q109
 r Targeting break-even results late 2009/early 2010
 
 
 
 § Aerostructures - Follow through on significant new business
 opportunities (e.g. JSF, C-27J)
 § Precision Products - Win sole source award with improved pricing on
 JPF USG sales under options 6, 7 and 8
 § Industrial Distribution - Optimize profitability in downturn, and capitalize on
 acquisition opportunities for regional/local competitors
 § Company-wide - achieve $35M To $40M free cash flow
Slide 19
 § Helicopters - Comprehensive marketing program for eleven SH-2G(I) aircraft,
 significant P&L upside potential
 § Specialty Bearings - Maintain profit margin in light of slowing commercial
 aerospace market
2009 KEY INITIATIVES
 
 
 
(In Millions)
As of 4/3/09
As of 12/31/08
As of 12/31/07
1. Cash and Cash Equivalents
11.0
$8.2
$73.9
2. Notes Payable and Long-term Debt
106.7
$94.2
$12.9
3. Shareholders’ Equity
276.9
$274.3
$394.5
4. Debt as % of Total Capitalization
27.8%
25.6%
3.2%
5. Capital Expenditures
 (YTD Continuing Operations)
2.2
$16.0
$14.2

6. Depreciation & Amortization
 (YTD Continuing Operations)
3.8
$12.8
$9.9
BALANCE SHEET AND CAPITAL FACTORS
Slide 20
 
 
 
Slide 21
Forward-Looking Statements
Forward-looking Statements
This presentation may contain forward-looking information relating to the company's business and prospects, including the Aerospace and
Industrial Distribution businesses, operating cash flow, and other matters that involve a number of uncertainties that may cause actual results
to differ materially from expectations. Those uncertainties include, but are not limited to: 1) the successful conclusion of competitions for
government programs and thereafter contract negotiations with government authorities, both foreign and domestic; 2) political conditions in
countries where the company does or intends to do business; 3) standard government contract provisions permitting renegotiation of terms
and termination for the convenience of the government; 4) domestic and foreign economic and competitive conditions in markets served by
the company, particularly the defense, commercial aviation and industrial production markets; 5) risks associated with successful
implementation and ramp up of significant new programs; 6) management's success in resolving operational issues at the Aerostructures
Wichita facility; 7) successful negotiation of the Sikorsky Canadian MH-92 program; 8) successful resale of the aircraft, equipment and spare
parts obtained in connection with the Australia SH-2G (A) program termination; 9) receipt and successful execution of production orders for
the JPF U.S. government contract, including the exercise of all contract options, successful negotiation of price increases with the U.S.
government, and receipt of orders from allied militaries, as all have been assumed in connection with goodwill impairment evaluations; 10)
satisfactory resolution of the company’s litigation with the U.S. Army procurement agency relating to the FMU-143 program; 11) continued
support of the existing K-MAX helicopter fleet, including sale of existing K-MAX spare parts inventory; 12) cost growth in connection with
environmental remediation activities at the Bloomfield, Moosup and New Hartford, CT facilities and our recently acquired Brookhouse facilities;
13) profitable integration of acquired businesses into the company's operations; 14) changes in supplier sales or vendor incentive policies; 15)
the effects of price increases or decreases; 16) pension plan assumptions and future contributions; 17) future levels of indebtedness and
capital expenditures; 18) continued availability of raw materials and other commodities in adequate supplies and the effect of increased costs
therefor; 19) the effects of currency exchange rates and foreign competition on future operations; 20) changes in laws and regulations, taxes,
interest rates, inflation rates, general business conditions and other factors; 21) future repurchases and/or issuances of common stock; and
22) other risks and uncertainties set forth in the company's annual, quarterly and current reports, and proxy statements. Any forward-looking
information provided in this presentation should be considered with these factors in mind. The company assumes no obligation to update any
forward-looking statements contained in this presentation.
Contact:
Eric B. Remington, Vice President
(860) 243-6334
Eric.Remington@kaman.com
 
 
 
APPENDIX
38%
2008 Sales $1.25 billion
Slide A-1
 
 
 

1 Corporate expense percentage is to Total Sales
(In thousands)
SEGMENTS
Net
Sales
Operating
Income/(Loss)
Operating
Margin
Q1 2009
Q1 2008
Q1 2009
Q1 2008
Q1 2009
Q1 2008
1. Industrial Distribution
$176,906
$182,165
$2,779
$9,073
1.6%
5.0%
AEROSPACE
2. Specialty Bearings
35,767
36,079
11,912
12,968
33.3%
35.9%
3. Precision Products
20,686
24,130
253
1,805
1.2%
7.5%
4. Helicopters
16,364
14,614
1,672
858
10.2%
5.9%
5. Aerostructures
44,312
28,793
1,460
(1,015)
3.3%
(3.5%)
6. Subtotal Aerospace
117,129
103,616
15,297
14,616
13.1%
14.1%
7. Net gain/(loss) on sale of assets
93
(110)
8. Corporate expense
(8,766)
(9,796)
1 (3.0%)
1(3.4%)
9. Sales/Op. inc. from continuing ops
$294,035
$285,781
$9,403
$13,783
3.2%
4.8%
Slide A-2
INCOME STATEMENT HIGHLIGHTS
For quarters ended April 3, 2009 and March 28, 2008
 
 
 

1 Corporate expense percentage is to Total Sales
(In thousands)
SEGMENTS
Net
Sales
Operating
Income/(Loss)
Operating
Margin
2008
2007
2008
2007
2008
2007
1. Industrial Distribution
$ 776,970
$ 700,174
$35,397
$33,038
4.6%
4.7%
AEROSPACE
2. Specialty Bearings
141,540
124,009
50,168
41,387
35.4%
33.4%
3. Precision Products
118,009
87,455
7,299
10,546
6.2%
12.1%
4. Helicopters
69,435
72,031
10,066
2,631
14.5%
3.7%
5. Aerostructures
147,641
102,362
(5,925)
13,219
(4.0%)
12.9%
6. Subtotal Aerospace
476,625
385,857
61,608
67,783
12.9%
17.6%
7. Net gain/(loss) on sale of assets
221
2,579
8. Corporate expense
(31,960)
(38,672)
1 (2.5%)
1(3.6%)
9. Sales/Op. inc. from continuing ops
$1,253,595
$1,086,031
$65,266
$64,728
5.2%
6.0%
Slide A-3
INCOME STATEMENT HIGHLIGHTS
For years ended December 31, 2008 and 2007