1
37%
Aerospace
Greg Steiner
2
Aerospace Snapshot
• Self-lube airframe
bearings
bearings
• Traditional airframe
bearings
bearings
• Flexible drive systems
• Engineered design and
testing
testing
• Tooling and design &
manufacture
manufacture
• Advanced machining
• Composite aerostructure
manufacturing
manufacturing
• Complex assembly
• Helicopter MRO and
support
support
• Bomb and missile safe
and arm fuzing devices
and arm fuzing devices
• High precision measuring
systems
systems
• Memory products
Aerosystems
Jim Larwood
Kaman Aerospace Group
Fuzing and Precision
Products
Products
Jerry Ricketts
Specialty Bearings and
Engineered Products
Rob Paterson
3
Aerospace Profile
FY2013 Sales by
FY2014(p) Net Sales $640M - $660M
FY2014(p) OI% Range 16.5% - 16.7%
Financial Summary
Technology Profile
4
Aerospace Financial Performance
Revenue Growth
Adj. EBITDA * Growth
$ in millions
5
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Aircraft Programs/Capabilities
1. Doors
2. Nose landing gear
3. Engine/thrust reverser
4. Flight controls
5. Flaps
6. Main landing gear
7. Rudder
8. Horizontal stabilizer
Bearing Products
Other Products
9. Door assemblies
10. Top covers
11. Fixed leading edge
12. Fixed trailing edge
13. Winglets
14. Wing structures, flaps, slats
15. Access doors
16. Nacelle components
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1
4
1
2
3
5
6
6
6
7
Aircraft Programs/Capabilities
1. Flexible drive systems
2. Flight control bearings
3. Landing gear bearings
Bearing Products
Other Products
4. Manufacture and assembly of tail
rotor pylon
rotor pylon
5. Blade manufacture, repair and
overhaul
overhaul
6. Manufacture and subassembly
of cabins and structures
of cabins and structures
7. Manufacture of cockpit
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Environment - Overall Aircraft Production
Source : Forecast International
Growth in Commercial Airliners
Stability in Key Defense Programs
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1 Part
1 Supplier
4,400 Parts
100+ Suppliers
Environment - Supplier Consolidation
AH-1Z Cabin
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Cost Pressures
• Requiring 15% price reductions
over 5 yrs.
over 5 yrs.
• Companies not complying are put
on a “no fly list” - barred from bidding
on new business
on a “no fly list” - barred from bidding
on new business
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Aerospace Strategy
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Driving Operational Efficiencies
• Commitment to lean manufacturing, continuous improvement,
automation, and operational excellence
automation, and operational excellence
• Extensive program management training and certification to manage
costs and drive efficiencies
costs and drive efficiencies
• Offering lower cost alternatives for customers
– Mexico, India JV
• Common Aerosystems ERP system is a key enabler of
consolidation and long-term cost reduction
consolidation and long-term cost reduction
– Back office
– Supply chain
– Management structure
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Market Leading Self-Lube Airframe Bearing Product Lines
Proprietary
Technology
Material Science
Capability
Capability
Operational
Excellence
Excellence
KAron® • KAflex® • Tufflex®
• New Technologies
• New Products
• Customization
• Customer Intimacy
• Work Force
• Lean
• Automation
World Class Performance
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Solid Positions on the Largest Commercial Platforms
737
777
787
A380
A350
A320
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Increasing Penetration on New Platforms in Specialty Bearings
Airbus A400M
Boeing 787
Virginia Class
Airbus A350
Agusta Westland 169
Gulfstream G650
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Fuzing Products
HARPOON
MAVERICK
AMRAAM
FMU-139
TOMAHAWK
JPF
STANDARD
MISSILE
MISSILE
SLAM-ER
SLAM-ER
AMRAAM
TOMAHAWK
STANDARD
MISSILE
MISSILE
AGM-65M
AMRAAM
On a Majority of U.S. Weapon Systems
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• U.S. Air Force (USAF) bomb fuze of choice
• USAF inventory levels well below desired
quantity, foreign orders and U.S. Navy
provide additional opportunities
quantity, foreign orders and U.S. Navy
provide additional opportunities
• USAF contract extends sole source position
into 2017
into 2017
• Backlog of over $100 million
• 27 foreign customers
• System reliability exceeds 98% and field
reliability is greater than 99%
reliability is greater than 99%
Bomb Compatibility
- JDAM
- Paveway II and III
- GBU-10, 12, 16, 24, 27, 28, 31, 32,
38, 54
38, 54
- BLU-109, 110, 111, 113, 117, 121,
122, 126
122, 126
- MK82/BSU-49, MK83/BSU-85,
MK84/BSU-50
MK84/BSU-50
JPF Program
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JPF Lot Acceptance Test Reliability
Value Engineering and Operational Excellence
Continually Improving Performance
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JPF Field Reliability
Outstanding Operational Reliability
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Aerosystems
Composite
Structures
Air Vehicles
& MRO
& MRO
Structures &
Assembly
Engineering
Services
ü Structures design
ü Composite mfg
ü Machining
ü Forming
ü Details mfg
ü Assembly
ü Tooling - mold and assembly
ü Low cost manufacturing
ü Certification support
ü MRO/aftermarket support
Mold, Assembly
Tooling
Synergies through common ERP
“One Stop Shopping”
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Aerosystems
A330 Composite Wing Panels
H-60 Integrated Cockpits
AH-1Z Cabin Manufacturing and Assembly
Unmanned K-MAX®
A-10 Flight Control Surfaces
G280 Aileron and Winglet
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“One Kaman” and Business Development
• Unified approach to business development representing the
complete Kaman suite of products and services
complete Kaman suite of products and services
• Regional sales directors are the cornerstone
– Senior, seasoned sales executives with broad contacts and
industry knowledge
industry knowledge
– Geographically located near major customers
– Increases customer intimacy for an earlier, more proactive
approach to new opportunities
approach to new opportunities
• Transforms us to “influencing” from “reactive”
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Driving Growth Through New Programs
747-8 wing-to-body
fairing
fairing
G280 winglet
A350 airframe
bearings
bearings
AH-1Z cabin
G7000/G8000 fixed
leading edge
leading edge
Learjet 85
composite door
composite door
P-8 composite
operator stations
operator stations
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Opportunities
Navy Programmable Fuze
Commercial K-MAX®
Unmanned K-MAX®
SH-2 Opportunities
Measuring
Structures Programs
Scorpion
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Summary
• Market conditions and competitive positions should enable mid to
high single digit commercial growth rates
high single digit commercial growth rates
• Defense is program dependent and opportunities remain
• Targeting 3%-6% annual sales growth over the next five years
• We expect to be able to maintain high-teen margins
– Growing commercial mix
– Higher value added content
– Continuous improvement culture
– ERP cost synergies