Kaman : Third Quarter 2020 Earnings Call Supplement

Creating Tomorrow's

Today

Q3 2020 Earnings Call Supplement

November 5, 2020

Forward Looking Statements

FORWARD-LOOKING STATEMENTS

This presentation includes "forward looking statements" relating to the announced transactions and future operations of the Company, which can be identified by the use of words such as "will," "expect," "poise," "believe," "plans," "strategy," "prospects," "estimate," "project", "seek," "target," "anticipate," "intend," "future," "likely," "may," "should," "would," "could," and other words of similar meaning in connection with a discussion of future operating or financial performance or events. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These statements are based on assumptions currently believed to be valid but involve significant risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ from those expressed in the forward looking statements. Such risks and uncertainties include, among others, the ability to implement the anticipated business plans following closing and achieve anticipated benefits and savings; and future and estimated revenues, earnings, cash flow, charges, cost savings and expenditures. Additional risks and uncertainties that could cause our actual results to differ from those expressed in the forward looking statements are identified in our reports filed with the SEC, including our Quarterly Reports on Form 10-Q, our Annual Reports on Form 10-K, and our Current Reports on Form 8-K. The forward looking statements included in this presentation are made only as of the date of this presentation, and the Company does not undertake any obligation to update the forward looking statements to reflect subsequent events or circumstances.

Non-GAAP Figures

Management believes that the Non-GAAP financial measures (i.e. financial measures that are not computed in accordance with Generally Accepted Accounting Principles) identified by an asterisk (*) used in this presentation or in other disclosures provide important perspectives into the Company's ongoing business performance. The Company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. Reconciliations from GAAP measures to the Non-GAAP measures are presented herein.

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Q3 2020 Overview

Financial

Performance

(from continuing operations)

• Net Sales up 17.1% over third quarter of 2019; Organic sales* up 6.7%
• Gross margins in excess of 30% and SG&A controls improve profitability
• Adjusted EBITDA* of 16.6%, a 190 bps increase over prior year period
• Adjusted diluted earnings per share* increased $0.24 to $0.70
• Available cash on hand of $152 million

Key

Messages

• Diversified product portfolio providing offset to continued weakness in commercial aviation
• Delivering on cost savings with approximately $42.5 million in annualized savings; Identified opportunities to deliver $7.5 million in additional savings
• Maintained discipline in application of our COVID-19 policies and procedures
• Strong balance sheet and significant capacity under our revolving credit facility
• No debt maturities until 2024

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Diversified Portfolio

Year-To-Date Sales up 14.4% to $599.2 million; Organic Sales* up 2.8%

Actual YTD Q3 2020		Commercial, Business & General Aviation
Sales By End Market		Sales 27% of Total

56% Defense

27% Commercial, Business & General Aviation

(formerly Commercial Aerospace)

9% Medical

8% Industrial and Other

Boeing & Airbus	38%
(Commercial Aviation)(direct and indirect)
All Other	62%
(Business & General Aviation)

OEM (1)	80%
Aftermarket (1)	20%

1. % totals are an approximation based on the mid-point of our
   initial 2020 Sales Outlook which was withdrawn with the release of our First Quarter Results on May 11, 2020.

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