Kaman 8K Other Events | KAMN 14 Nov 07

INVESTOR PRESENTATION

Kaman Corporation

(NASDAQ-GM: KAMN)

3Q/2007

Slide 1

    Forward-looking Statements

This presentation may contain forward-looking information relating to the company's business and prospects, including the Aerospace, Industrial
Distribution and Music 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
defense, commercial aviation, industrial production and the consumer market for music products; 5) risks associated with successful implementation
and ramp up of significant new programs; 6) satisfactory completion of the Australian SH-2G(A) program, including negotiation of payment and
performance terms for the balance of the program as well as any additional work scope requested by the Commonwealth; 7) receipt and successful
execution of production orders for the JPF U.S. government contract including the exercise of all contract options and receipt of orders from allied
militaries, as both have been assumed in connection with goodwill impairment evaluations; 8) the University of Arizona’s continued failure to succeed
in its appeals efforts to overturn the jury verdict that rejected the University's breach of contract claim against the company; 9) satisfactory resolution
of (i) the company’s contract dispute with the U.S. Army procurement agency relating to the FMU-143 program and (ii) the 2005 DCIS investigation of
that program; 10) satisfactory results of negotiations with NAVAIR concerning purchase of the company's leased facility in Bloomfield, Conn.; 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 Moosup facility and such potential activities at the Bloomfield facility; 13) whether and when Kaman's music
business is sold on the terms set forth in an agreement entered into as of October 27, 2007; 14) profitable integration of acquired businesses into the
company's operations; 15) changes in supplier sales or vendor incentive policies; 16) the effect of price increases or decreases; 17) pension plan
assumptions and future contributions; 18) future levels of indebtedness and capital expenditures; 19) continued availability of raw materials in
adequate supplies; 20) the effects of currency exchange rates and foreign competition on future operations; 21) changes in laws and regulations,
taxes, interest rates, inflation rates, general business conditions and other factors; 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 report should be considered with these
factors in mind. The company assumes no obligation to update any forward-looking statements contained in this presentation.

Contact:
Russell H. Jones, SVP, Chief Investment Officer & Treasurer
(860) 243-6307
Russell.Jones@kaman.com

Slide 2

Percent Distribution of Segment Sales:  Full-year 2006

55%

9%

18%

6%

6%

6%

Discontinued Operations

Kaman Corporation Segment Reporting Structure

•
            
Kaman reports information in six
      business segments:  Five of these
      comprise continuing operations,
      including

–
            
Four aerospace industry
      segments:

•
            
Specialty Bearings

•
            
Aerostructures

•
            
Helicopters, and

•
            
Fuzing

–
            
As well as the Industrial
      Distribution segment.

•
            
In addition there is one segment,
      Music, comprising discontinued
      operations.

EXHIBIT 2

Highlights:  Third Quarter Ended September 28, 2007

Slide 3

Four Aerospace industry segments:

ü
            
Aerostructures segment: Sales up 19.9% driven by Sikorsky BLACK HAWK and other Jacksonville programs;
        Operating income down 52.8% for quarter due to adjustments related to the simultaneous ramp-up of several new
        programs at Wichita

ü
            
Fuzing segment: Sales  flat; Operating income up 9.7% for quarter. Segment remains subject to
        quarter-by-quarter fluctuation.

ü
            
Helicopters segment: Sales up 18.1% driven by Egypt SH-2G depot level maintenance program and upgrades -
        and by subcontract work on BLACK HAWK for Sikorsky.  Operating income of $2.3 million compared to a loss of
        $1.1 million in last-year third quarter.  Australia Program charge is lower.

ü
            
Specialty Bearings segment: Sales up 17.5%; Operating income up 55.7% in quarter.  Strong demand in a good
        market.  Record backlogs.

Industrial Distribution segment: Sales up 6.8%; Operating income up 5.3% for the quarter

ü
            
Economic conditions mixed for quarter, but appear moderately favorable for second half

ü
            
Investing in ramp-up of large new national account contracts

Four aerospace industry
segments

BUSINESS OVERVIEW

Slide 4

2006 sales for the four segments: $326.0 million

27%

*Millions $ Sale* *Year ended* *12/31/06*	*Percent* *Military* *2006*

*$106.3*	*20%*

*78.7*	*69%*

*69.9*	*83%*

*71.1*	*89%*

*$326.0*	*60%*

*Millions $ Sales*
*Quarter ended*
*9/28/07*	*9/29/06*

*$30.7*	*$ 26.2*

*25.7*	*21.5*

*18.2*	*15.4*

*22.1*	*22.3*

*$96.7*	*$ 85.4*

Specialty Bearings

Aerostructures

Helicopters

Fuzing

Aerospace

Slide 5

Aerospace industry segments:

Percent share of Kaman’s 2006 aerospace
industry sales represented by each of the
four aerospace industry segments.

Total these segments

Sales by aerospace industry segment

Aerospace

Slide 6

Kamatics airframe bearings and
high-performance drive couplings

RWG bearings

Specialty Bearings Segment: Bloomfield, CT and Dachsbach, Germany

4
            
Designs and manufactures proprietary self-lubricating
      bearings for OEM and MRO use in nearly all military
      and commercial aircraft produced in North and
      South America and Europe.

4
            
Strategy: Maintain leadership in product technical
      performance and application engineering support
      while staying ahead of the curve in product
      technology enhancement:

4
            
Target the most demanding applications early in the aircraft
     design process as part of prime-contractors’ problem-
     solving teams - and, applying innovative technology, develop
     and manufacture proprietary products which effectively
     address customers’ needs by providing the highest
     performance and service available.

4
            
Market size:  $0.5 billion high-end portion of the $1.2 billion
     aerospace bearing market.

4
            
Key customers include:  Military (U.S. and allied)
      and Commercial  (Boeing, Airbus, Embraer,
      Bombardier and others).

Aerospace

Slide 7

Top and Middle: Metals-oriented at Jacksonville
Bottom: Composites-oriented at Wichita

 Aerostructures Segment: Jacksonville, FL and Wichita, KS

4
            
Produces parts and subassemblies for
      Tier 1 Prime Manufacturers:

4
            
Military programs including Boeing C-17
    internal wing structures, Sikorsky BLACK HAWK
    helicopter cockpits, and Sikorsky MH-92
    helicopter composite tail rotor pylons.

4
            
Commercial programs including Boeing 777
    subassemblies and 787 composite structures.

4
            
Strategy:  Take advantage of substantial
      opportunities arising from the larger
      producers’(Airbus, Bell, Boeing, Sikorsky,
      Vought, etc.) offloading of manufacturing.

4
            
Seeing opportunity for new
      programs: Available capacity, well-located,
      non-union, flexible, competitive.

Aerospace

Slide 8

Top:  Kaman SH-2G Super Seasprites
Middle: Joining BLACK HAWK         
helicopter sections at Bloomfield facility
Bottom: Kaman K-MAX BURRO

 Helicopters Segment:  Bloomfield, CT

4
            
Markets and supports Kaman-made SH-2G Super
      Seasprite maritime helicopter and K-MAX
      “Aerial Truck” helicopter -  and performs
      subcontract helicopter programs.

4
            
Strategy:  Take advantage of increasing
      opportunities in subcontracting as the Tier 1
      Prime producers shift from manufacturing to
      final assembly and systems integration.

4
            
Principal customers include: The governments
      of Australia, Egypt, New Zealand and Poland;
      and Sikorsky.

4
            
Current principal programs include: SH-2G(A)
      program for Australia (in a loss position), depot
      level maintenance and upgrades to SH-2G(E)
      helicopters for Egypt, and BLACK HAWK
      subcontract work for Sikorsky.

Aerospace

Slide 9

Fuzes for high profile missile and bomb programs
including the Joint Programmable Fuze (JPF); and high
performance measuring and memory devices.

 Fuzing Segment:  Middletown, CT and Orlando, FL

4
            
Manufactures safe, arm and fuzing devices
      for major missile and bomb programs.

4
            
Principal Missile programs: AMRAAM, ATACMS,
   Harpoon, Maverick, Standard and Tactical Tomahawk

4
            
Principal Bomb program: Joint Programmable Fuze

4
            
Strategy:  Become a leading producer of
      fuzing systems for the U.S. and allied militaries.
      Market size estimate: $650 million.

4
            
Principal customers: U.S. and allied militaries,
      Boeing, General Dynamics, Lockheed and
      Raytheon.

4
            
Division includes Measuring & Memory
      Systems products.

Industrial Distribution
segment

BUSINESS OVERVIEW

Slide 10

2006 sales: $665.4 million

55%

Industrial Distribution

Slide 11

Industrial Distribution Segment

Extensive product catalogue

Value-added service

4
            
Third largest player in $12 billion power transmission
      market.  Provides nearly two million products to more
      than 50,000 MRO and OEM customers.

4
            
Expand the geographic footprint in major industrial markets
     to enhance competition for national and regional accounts.

4
            
Broaden the product line and further enhance operating and
     asset utilization efficiencies throughout the enterprise.

4
            
Serves a broad cross section of North American
      industry with local branches in 70 of the top 100 U.S.
      Industrial markets.  Growing national account base.

4
            
Now nearly 200 locations in the U.S., Canada
      and Mexico.

4
            
The business tends to track the U.S. Industrial
      production and capacity utilization indices.

Industrial Distribution

Source: Federal Reserve Board

Slide 12

FRB Indices Of Industrial Production and Capacity Utilization:
Predictability: Segment tends to track national indices

Industrial Distribution

Slide 13

Geographical Coverage:  Approximately 200 locations in U.S., Canada and Mexico

Discontinued
Operations

(Music Segment)

BUSINESS OVERVIEW

Slide 14

2006 sales: $214.8 million

18%

Discontinued Operations

Slide 15

Discontinued Operations:  Music Segment

Largest independent distributor of percussion and
fretted musical instruments and accessories;
Industry-leading information technology systems

4
            
Largest independent distributor of musical
      instruments and accessories

4
            
On October 29, 2007, Kaman announced an agreement
      to sell 100% of segment to Fender Musical
      Instruments Corp. for approximately $117 million.
      Stock transaction.

4
            
Closing targeted to occur prior to January 1, 2008
      subject to favorable Hart-Scott-Rodino antitrust
      review and customary conditions.

4
            
When closed, transaction expected to result
      in an after tax gain of approximately $14 million,
      or $0.55 per share, fully diluted and generate
      net proceeds of approximately $100 million.

4
            
Proceeds to be used initially to reduce
      indebtedness and thereafter to pursue strategic
      objectives.

Financial Review

Slide 16

Sales: 
3Q 2007: up 7.9% over 3Q 2006

Earnings before Income Tax:
See GAAP reconciliation (Slide 19)
for effect of one-time charge in
third quarter 2007 and 2006

Net Earnings:
3Q 2007: up 34.3% over 3Q 2006

    Income Statement Highlights for Continuing and Discontinued Operations

  For the three-month periods ended

       $307.6

   $331.9

$14.4

$19.0

      $8.7

 $11.7

$0.36

 $0.47

Slide 17

EPS - diluted:
Average diluted shares outstanding
9/29/06: 24,794; 9/28/07: 25,336

Sales:
1^st 9 Mos 2007: up 8.0% over 1^st 9 Mos 2006

Earnings before Income Tax:

See GAAP reconciliation (Slide 20)
for effect of one-time charge in 1^st 9 Mos of 2007 and 2006

Net Earnings:
1^st9 Mos 2007: up 43.9% over 1^st9 Mos 2006

EPS - diluted:
Average diluted shares outstanding
9/29/06: 24,854; 9/28/07: 25,217

 Income Statement Highlights for Continuing and Discontinued Operations

   For the first nine-month periods ended

       $897.2

   $969.2

$36.6

$50.6

     $22.1

 $31.9

$0.91

 $1.28

Slide 18

 
 
 
 
            Three Months ended
September 28, 2007
            Three Months ended
September 29, 2006
            
            
(In thousands)
            Earnings
Before
Income
Taxes
            Net
Earnings
            Net
Earnings
Per
Share
Diluted
            Earnings
Before
Income
Taxes
            Net
Earnings
            Net
Earnings
Per
Share
Diluted
            
            
As Reported
             
$18,982
             
$11,737
             
$0.47
             
$14,408
             
$8,738
             
$0.36
            
            
Add:
                       
            
Addition to Loss Reserve:
Australia
             
768
             
461
             
0.02
             
2,497
             
1,498
             
0.06
            
            
As Adjusted
             
$19,750
             
$12,198
             
$0.49
             
$16,905
             
$10,236
             
$0.42

This adjustment represents a discrete item.  The Company uses certain financial measures internally to focus management on period-to-period
changes in our business. Therefore, we believe that this supplemental information is meaningful to investors when considered in connection with
the information contained in the GAAP presentation of financial information. The presentation of this item is not meant to represent results as
defined by GAAP, nor as an alternative for financial performance as determined under GAAP.

Slide 19

GAAP reconciliation applicable to the Third-Quarter Periods

This adjustment represents a discrete item.  The Company uses certain financial measures internally to focus management on period-to-period
changes in our business. Therefore, we believe that this supplemental information is meaningful to investors when considered in connection with
the information contained in the GAAP presentation of financial information. The presentation of this item is not meant to represent results as
defined by GAAP, nor as an alternative for financial performance as determined under GAAP.

Slide 20

GAAP reconciliation applicable to the First Nine Month Periods

	Nine Months ended September 28, 2007			Nine Months ended September 29, 2006
(In thousands)	Earnings Before Income Taxes	Net Earnings	Net Earnings Per Share Diluted	Earnings Before Income Taxes	Net Earnings	Net Earnings Per Share Diluted
As Reported	$50,628	$31,871	$1.28	$36,604	$22,144	$0.91
Add:
Addition to Loss Reserve: Australia	5,617	3,371	0.14	7,807	4,684	0.19
As Adjusted	$56,245	$35,242	$1.42	$44,411	$26,828	$1.10

(In millions)	Net Sales		Operating Income/(Loss)		Operating Margin
SEGMENTS	3Q/07	3Q/06	3Q/07	3Q/06	3Q/07	3Q/06
Aerostructures	$25.7	$21.5	$1.6	$3.5	6.3%	16.1%
Fuzing	22.1	22.3	2.7	2.4	12.2%	11.0%
Helicopters	18.2	15.4	2.3	(1.1)	12.5%	(7.0%)
Specialty Bearings	30.7	26.2	10.9	7.0	35.3%	26.7%
Subtotal Aerospace	96.7	85.4	17.5	11.8	18.0%	13.8%
Industrial Distribution	178.1	166.7	9.0	8.6	5.1%	5.2%
Corporate Expense/Other			(9.5)	(8.0)	¹(2.9%)	¹(2.6%)
Total from Continuing perations	274.8	252.1	17.0	12.4	6.2%	4.9%
Discontinued Operations	57.1	55.5	3.7	3.8	6.5%	6.8%
Total	$331.9	$307.6	$20.7	$16.2	6.2%	5.3%


1 Corporate expense percentage is to Total Sales

Slide 21

Income Statement Highlights for the Third-Quarter Periods

(In millions)	Net Sales		Operating Income/(Loss)		Operating Margin
SEGMENTS	9Mos/07	9Mos/06	9Mos/07	9Mos/06	9Mos/07	9Mos/06
Aerostructures	$74.2	$55.4	$9.9	$7.8	13.3%	14.1%
Fuzing	64.6	56.0	9.2	6.9	14.3%	12.3%
Helicopters	54.7	42.1	1.0	(4.3)	1.9%	(10.2%)
Specialty Bearings	94.2	79.8	31.6	22.1	33.6%	27.7%
Subtotal Aerospace	287.7	233.4	51.7	32.5	18.0%	13.9%
Industrial Distribution	526.1	507.8	26.0	28.7	5.0%	5.6%
Corporate Expense/Other			(29.0)	(25.9)	¹ (3.0%)	¹ (2.9%)
Total from Continuing Operations	813.8	741.2	48.8	35.2	6.0%	4.7%
Discontinued Operations	155.4	156.0	6.9	6.7	4.5%	4.3%
Total	$969.2	$897.2	$55.7	41.9	5.7%	4.7%


1 Corporate expense percentage is to Total Sales

Slide 22

Income Statement Highlights for the First Nine Month Periods

(In thousands)	As of 9/28/07	As of 12/31/06	As of 9/29/06
Notes Payable and Long-term Debt	$99,940	$74,423	$97,721
Shareholders’ Equity	$332,060	$296,561	$287,652
Debt as % of Total Capitalization	23.1%	20.1%	25.4%
Capital Expenditures (Continuing Operations)	$9,301	$12,099	$7,354
Depreciation & Amortization (Continuing Operations)	$7,204	$8,754	$6,612

Slide 23

Balance Sheet and Capital Factors

Public information is available on the Kaman website:  www.kaman.com

KAMN

KAMAN CORPORATION

Traded on NASDAQ Global Market

Kaman (KAMN) 8-KOther Events