Kaman Corporation

Climate Impact & Sustainability Data (2020, 2021, 2022)

Expanded the Early Career Rotational Program to include more sites and more candidates.
Launched a women’s virtual leadership development program.

Ongoing COVID-19 pandemic impacting commercial end markets (approximately 50% of 2020 sales), resulting in order deferrals and cancellations.
Concentration of sales to a few major direct commercial sales customers under the JPF program, particularly two Middle Eastern customers (over 20% of consolidated sales), requiring export approvals from the USG.
Delay in payment from a single Middle Eastern customer ($32.4 million of $64 million in accounts receivable over twelve months past due).
Potential for U.S. Navy contract award for the FMU-139 D/B bomb fuze to jeopardize the FMU-152 A/B bomb fuze program.
Impact of the grounding of the 737 MAX fleet (revenue of $5.6 million in 2020 and $19.9 million in 2019).

Implemented remote work arrangements, traceability protocols, daily temperature checks, and restricted employee flow to minimize health risks during the COVID-19 pandemic.
Implemented furloughs and workforce reductions to reduce costs.
Continued to pursue additional JPF opportunities and received an order from the USAF for JPFs worth approximately $57.3 million.
Continued to satisfy requirements for orders for both the USAF and foreign militaries under Option 14 and completed pricing negotiations for Options 15 and 16 with the USG.
Borrowed $200 million under the credit facility to provide additional financing flexibility and repaid these borrowings in full.

Kaman Composites Vermont named Rotary and Mission Systems Elite Supplier by Sikorsky Aircraft Corporation

Kaman Aerospace Jacksonville was awarded a follow-on contract from Sikorsky, and was named Manufacturer of the Year by First Coast Manufacturing, based on criteria that included environmental, health and safety, continuous improvement, workforce and community engagement, and talent management.

Kineco Kaman Composites India Private Limited, our joint venture, was named a Gold Supplier of BAE Systems and received the BAE Systems Partner 2 Win Supplier of the Year Award.
Launched All-Employee Engagement Survey to improve engagement and satisfaction and address training and development, inclusive culture and belonging, and communication.
Women Advocating Leadership at Kaman (WALK) program to increase the global representation of women in leadership roles.
Support for education and various local education programs, charitable and civic organizations.

Modified long-term incentive program to increase emphasis on equity, aligning interests of NEOs and shareholders.

Ongoing COVID-19 pandemic impacting business and manufacturing, supply chain disruptions, order reductions.
Concentration of sales to a few major direct commercial sales customers.
Pressure to lower pricing from OEMs.
Supply chain shortages impacting near-term results.
Potential loss of product approvals from the FAA.
Competition from domestic and foreign manufacturers.
Cybersecurity threats and vulnerabilities.
Compliance with export control regulations and authorizations.
Litigation, tax, environmental, safety and health, and other legal compliance risks.
Risks associated with foreign operations.
Potential risks and liabilities related to complex aerospace products.
Potential impairment of goodwill or other intangible assets.
Difficulties in developing and producing new products.
Attracting and retaining qualified personnel.
Protecting intellectual property.
Business disruptions.
Maintaining effective internal controls.
Adoption of new accounting guidance or changes in interpretations of existing guidance.
Actions by activist shareholders.

Implementing cost-effective process improvements and partnering with suppliers to reduce costs.
Maintaining an extensive qualification system to control risk associated with reliance on third parties.
Managing an information security program, maintaining strong incident report capabilities, and performing daily off-site backups.
Implementing business continuity plans and security precautions.
Internal controls, procedures and compliance programs to train employees and agents on compliance with the FCPA and other applicable international laws and regulations.
Maintaining adequate insurance for risks and liabilities.
Regularly assessing the potential outcomes of examinations by tax authorities.
Cost reduction and restructuring efforts, including workforce reductions and facility consolidations.
Offering competitive compensation and benefits and opportunities for continued development.
Business continuity plans to mitigate the effects of disruptions.

Manufacturer of the Year by First Coast Manufacturing Association (Jacksonville division)
BAE Systems Partner 2 Win Supplier of the Year Award (Kineco Kaman Composites India Private Limited)

Implemented software to centralize data collection for environmental responsibility efforts to establish baseline performance, integrate sustainable business practices, and support better reporting.

Continued to drive action plans to address Training and Development, Inclusive Culture and Belonging, and Communication from the 2021 All-Employee Engagement Survey.
Launched Learning, Growing and Leading Series, a monthly training session for professional development.
Women in Leadership Program developed capabilities of female leaders.

Updated Code of Conduct effective January 1, 2022.
Requires annual compliance training for officers, directors, and employees.
Designated Compliance Advocates responsible for distributing the Code, educating personnel, investigating violations, and reporting to the Chief Compliance Officer.

Restructuring plan to consolidate JPF production, close Orlando facility, discontinue K-MAX® production, and streamline operations to generate approximately $25 million in annualized cost savings.
Implementing cost-effective process improvements and partnering with suppliers to reduce costs.
Entered into interest rate swap agreements to hedge variable-rate Credit Agreement interest payments.