Kaman Q3 2021 Earnings Call Supplement

Q3 2021 Earnings Call Supplement

November 3, 2021

Recent Highlights

Q3 2021

Financial

Performance

(from continuing operations)

Key

Messages

• Net sales from continuing operations of $179.8 million; Gross Margin of 35.1%
• Earnings from continuing operations of $14.7 million, up $53.2 million over prior year loss
• Adjusted EBITDA from continuing operations* of $27.8 million or 15.5%, up 70 basis points sequentially
• Diluted earnings per share from continuing operations of $0.53; Adjusted diluted earnings per share* of $0.60
• Year-to-datenet cash provided by operating activities of $14.1 million; Adjusted free cash flow* of $27.9 million, a $94.5 million improvement over the prior year
• Increased full year earnings guidance on lower sales volume
• Significant year-over-year improvements in our Medical and Industrial end markets with strong order rates
• Sequential improvement in our bearings products as we emerge from the lows of the pandemic
• Lower defense sales driven by fewer JPF deliveries compared to record levels in the prior year
• Improved gross margin performance demonstrates the power of our Operations Excellence model
• Strong balance sheet and significant available capacity under our revolving credit facility

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Diversified Portfolio

Year-to-date 2021 Sales down 10.9% to $533.8 million; Organic Sales* down 8.7%

Actual Year-to-date 2021		Commercial, Business & General Aviation
Sales By End Market		Sales 25% of Total

52% Defense		Boeing & Airbus	27%
		(Commercial Aviation)(direct and indirect)
		All Other	73%
25% Commercial, Business & General Aviation
	(Business & General Aviation)

12% Medical		OEM	86%
		Aftermarket	14%
11% Industrial and Other

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Meaningful Long Term Growth

Diverse End Market Exposure with Meaningful Long Term Growth

Platform /	2021 Sales	Long Term Growth Drivers
Organic Q3	Sequential
End Markets
	YoY	Q3 vs. Q2
	↓	↓	 Defense exposures provide stability and growth opportunities
	 Continue to identify new opportunity on key defense platforms &
Defense	programs: F/A-18,F-35, Space & Satellites, UAVs, Future Vertical
		Lift, Columbia class submarine
	↓	↑	 Breadth of content on a wide range of fixed wing and rotary
	 Positioned to capture share from COVID-19 headwinds
Commercial, Business & General Aviation			 Growing applications in new end markets; Space, eVTOL, autonomy
	↑	↓	 Aging population
	 Increasing biopharma capital budgets
Medical			 Strong technical advances and product development pipelines
	↑	↑	 Increasing number of robotics applications
	 Industry 4.0 and artificial intelligence
Industrials			 Maintenance and replacement of industrial equipment

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Strategic Priorities

Growth through Innovation		M&A and Capital Allocation		Operational Excellence
Accelerate internal		Expand capabilities through		Fully deploy operations
investments in our		accretive M&A while		excellence model to drive
products, facilities, and		maintaining a disciplined		significantly improved
people		approach to the return of		operating and financial
		capital to shareholders		performance

EBITDA	Free Cash	Return on
Margin	Flow Conversion	Invested Capital

Focused on improving performance across these metrics

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