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Kaman Aerospace serves customers around the world producing high quality components and providing design and engineering services. Kaman designs and builds flight-critical components, structures and systems including proprietary aircraft bearings, complex metallic and composite structures for commercial and military aircraft, and missile and bomb fuzing systems for the U.S. and allied militaries. Kaman Corporation Annual Report 2013 Highlights of 2013: -Revenues increased 5.7% to $614.0 million -Operating income rose 15.1% to $102.6 million Building a 21st Century infrastructure. -Operating margins rose to 16.7% in 2013, up from 15.3% in 2012 -New programs were added and backlog grew to over $600 million Expanding customer relationships. Developing talented leaders. Bloomfield, Connecticut Kaman Distribution Integrating recent acquisitions. is one of the nation’s leading industrial distributors, offering a wide variety of (860) 243–7100 products and related services in three categories; bearings and mechanical www.kaman.com Strengthening our company for the future. power transmission; fluid power; and automation, control and energy. Highlights of 2013: -Revenues increased 5.5% to $1.07 billion -We expanded our Parker relationship by acquiring Western Fluid Components, Inc., and Northwest Hose and Fittings, Inc. -We acquired Ohio Gear & Transmission -We began our national distribution agreement with Schneider Electric, a global specialist in energy management Moving forward. In 2013, Kaman continued to move forward on several fronts, from expanding customer relationships to building a stronger infrastructure that provides the foundation for a larger, more global company. We continued to invest in the future of our company by investing in our people – the next generation of Kaman leaders. The overall results for 2013 demonstrated gains in both revenue and profitability. Equally as important, the actions taken in 2013 have strengthened our company for the future. 264532_CS_Kaman_CVR_R1.indd 1 264532_CS_Kaman_NARR_R1.indd 1 2/21/14 6:42 PM 2/21/14 8:24 PM Kaman Corporation Annual Report 2013 Building a 21st Century infrastructure. Expanding customer relationships. Developing talented leaders. Bloomfield, Connecticut Integrating recent acquisitions. (860) 243–7100 www.kaman.com Strengthening our company for the future. Moving forward. In 2013, Kaman continued to move forward on several fronts, from expanding customer relationships to building a stronger infrastructure that provides the foundation for a larger, more global company. We continued to invest in the future of our company by investing in our people – the next generation of Kaman leaders. The overall results for 2013 demonstrated gains in both revenue and profitability. Equally as important, the actions taken in 2013 have strengthened our company for the future. 264532_CS_Kaman_CVR_R1.indd 1 2/21/14 8:24 PM In 2013, weIn 2013,made we made January National distributor agreement with Schneider Corporate andCorporate and $35.5 million Joint Programmable Fuze order Shareholder InformationShareholder Information great progressgreat progress February Strategic alliance between Kaman Industrial Technologies and Wajax Industrial Components Kaman Corporation and SubsidiariesKaman Corporation and Subsidiaries in executingin executing on our on our Scott E. Kuechle appointed to the Board of Directors CORPORATE HEADQUARTERSCORPORATE HEADQUARTERS ANNUAL MEETING ANNUAL MEETING March Unmanned K-MAX® awarded Aviation Week Laureate Award for outstanding achievement in Kaman Corporation Kaman Corporation The Annual Meeting of ShareholdersThe Annual is scheduled Meeting of to Shareholders be is scheduled to be long-termlong-term strategies. strategies. operations and technical advancement 1332 Blue Hills Avenue 1332 Blue Hills Avenue held on Wednesday, April 16,held 2014 on atWednesday, 9:00 am local April time 16, 2014 at 9:00 am local time Bloomfield, Connecticut 06002Bloomfield, Connecticut 06002 at the offices of the company,at 1332the offices Blue Hillsof the Avenue, company, 1332 Blue Hills Avenue, (860) 243-7100 (860) 243-7100 Bloomfield, Connecticut, 06002.Bloomfield, Connecticut, 06002. April Kaman Industrial Technologies named a Berry Plastics Corporation "Supplier of the Year" Kaman Engineering Services presented with a Boeing “Supplier of the Year” STOCK LISTING STOCK LISTING TRANSFER AGENT TRANSFER AGENT Kaman Corporation’s commonKaman stock Corporation’s is traded on thecommon stock is tradedComputershare on the Computershare New York Stock Exchange underNew Yorkthe symbol Stock ExchangeKAMN. under the symbolP.O. Box KAMN. 30170 P.O. Box 30170 May Kaman entered into a contract with the New Zealand Ministry of Defence for purchase of ten College Station, TX 77842-3170College Station, TX 77842-3170 Kaman SH-2G(I) Super Seasprite Aircraft INVESTOR, MEDIA AND PUBLICINVESTOR, RELATIONS MEDIA CONTACTAND PUBLIC RELATIONS(800) 227-0291 CONTACT (800) 227-0291 Eric B. Remington Eric B. Remington www.computershare.com/investorwww.computershare.com/investor Acquisition of Parker Distributor Northwest Hose & Fittings announced Vice President, Investor RelationsVice President, Investor Relations Overnight correspondence shouldOvernight be sent correspondence to: should be sent to: (860) 243-6334 (860) 243-6334 Statement of support for the National Guard and Reserve signed by Kaman Corporation Computershare Computershare [email protected]@kaman.com 211 Quality Circle, Suite 210211 Quality Circle, Suite 210 College Station, TX 77845 College Station, TX 77845 June Kaman Aerospace selected to supply fixed leading edge assemblies for Bombardier Global 7000 and Global 8000 aircraft programs Kaman announced at the Paris Air Show the construction of a new bearing manufacturing facility in Höchstadt, Germany July Kaman signs agreement to acquire Ohio Gear & Transmission Robert D. Starr appointed Senior Vice President and Chief Financial Officer August $78.5 million Joint Programmable Fuze contract with the U.S. Air Force Agreement signed to acquire Parker Distributor Western Fluid Components September Distribution sales reached a quarterly record of $273 million October Kaman Aerospace delivered its 1,000th BLACK HAWK cockpit to Sikorsky marking almost $500 million in revenue since program inception Kaman finalized delivery of its first AH-1Z cabin to Bell Helicopter marking a significant milestone for an important new program November New agreement with Boeing for manufacture and assembly of 747-8 wing-to-body fairing December Kaman Industrial Technologies launches new fluid power catalog Electric vehicle charging stations installed at three company locations to promote environmental sustainability Kaman Board of Directors: Kaman Board of Directors: Standing (left to right): Thomas W. Rabaut,Standing George (left to E. right): Minnich, Thomas Eileen W. S. Rabaut, Kraus, George E. Minnich, Eileen S. Kraus, E. Reeves Callaway III, Scott E. Kuechle,E. Reeves and Brian Callaway E. Barents III, Scott E. Kuechle, and Brian E. Barents Seated (left to right): Neal J. Keating,Seated Richard (left J. Swift,to right): A. WilliamNeal J. Keating,Higgins, Richardand Karen J. Swift,M. Garrison A. William Higgins, and Karen M. Garrison 264532_CS_Kaman_CVR_R1.indd 2 264532_CS_Kaman_CVR_R1.indd 2 2/21/14 8:24 PM 2/21/14 8:24 PM Kaman Aerospace serves customers around the world producing high quality components and providing design and engineering services. Kaman designs and builds flight-critical components, structures and systems including proprietary aircraft bearings, complex metallic and composite structures for commercial and military aircraft, and missile and bomb fuzing systems for the U.S. and allied militaries. Highlights of 2013: -Revenues increased 5.7% to $614.0 million -Operating income rose 15.1% to $102.6 million -Operating margins rose to 16.7% in 2013, up from 15.3% in 2012 -New programs were added and backlog grew to over $600 million Kaman Distribution is one of the nation’s leading industrial distributors, offering a wide variety of products and related services in three categories; bearings and mechanical power transmission; fluid power; and automation, control and energy. Highlights of 2013: -Revenues increased 5.5% to $1.07 billion -We expanded our Parker relationship by acquiring Western Fluid Components, Inc., and Northwest Hose and Fittings, Inc. -We acquired Ohio Gear & Transmission -We began our national distribution agreement with Schneider Electric, a global specialist in energy management 264532_CS_Kaman_NARR_R1.indd 1 2/21/14 6:42 PM “W hile the economic climate remains uncertain, I believe Kaman is better positioned than ever to capitalize on future growth opportunities.” Neal J. Keating Chairman, President and Chief Executive Officer During 2013 Kaman made strong progress despite a challenging environment, delivering increases in both revenue and operating income. Our product diversification and ongoing commitment to operational improvement continued to show results. Just as importantly, we continued to execute on our long- term strategic plan, building a stronger Kaman well positioned to take advantage of growth opportunities in both our Distribution and Aerospace segments and able to weather the inevitable challenges that lie ahead. Kaman reported 2013 net earnings from continuing operations of $56.7 million, or $2.09 per diluted share, compared to $53.9 million, or $2.03 per diluted share, in 2012, an increase of about 3%. Net sales for 2013 increased 5.6% to $1.68 billion,