OC A&D Forum Ducommuns continued drive to expand organically and - PowerPoint PPT Presentation

Ducommun Overview OC A&D Forum Ducommun’s continued drive to expand organically and through acquisitions, adding capabilities and value including assembly to its product, process and service offering April 5, 2012

Key Overview Objectives Today’s presentation will focus on: 1) Ducommun’s strategic decision to move up the value chain with design and higher level assemblies making the transition to being a leading Tier2 2) Ducommun’s drive to broaden our product, process and service offering to add value and capabilities, including successfully integrating strategic acquisitions into "One Ducommun”. 3) Where we are on that journey to being a leading Tier 2 “Best Value” Supplier. 2

Tony Reardon, President & CEO Ducommun LaBarge Ducommun Ducommun Miltec Technologies AeroStructures Blackhawk Design – Development -Fabrication - Integration - Test - Production The Ducommun Team Provides Total Product Solutions Designs, engineers and manufactures aerostructure and electromechanical components and subassemblies • Provides engineering, technical and program management services principally for the global • aerospace industry 2012 Estimated Sales ~$785 million • 3400+ employees in the U.S. , Mexico and Thailand • Founded in 1849 • Headquartered in Carson, CA • 3

Vision Statement and Core Values Ducommun, a global partner  Growing profitably to $1 Billion  Powered by the development and full commitment of our people  Driving innovative solutions and services to the aerospace, defense and diverse technology-driven markets Core Values:  Honesty  Professionalism  Customer Orientation  Continuous Improvement  Teamwork 4 4

Major Customers 5 5

Ducommun Incorporated Ducommun Inc. Pro Forma Revenue Designs, engineers and manufactures 1. aerostructure and electromechanical 15% components and subassemblies Ducommun Inc. 1 Expertise in high-mix, low-volume 2. 10% manufacture of custom, complex, high- Other 1 reliability, mission-critical products 58% 6% Broad range of capabilities in electronics 3. and interconnects to electromechanical 4% 1 and high-end final assemblies 4% Extensive value-added services, such as US Government 4. 3% engineering and design, program 2012 Sales Est: management and aftermarket support $785 million 2012 Estimated sales of $785 million 5. Growth-oriented 6. 6

Ducommun’s End Use Markets Offer Growth Opportunities (Pro Forma Combined for the Twelve Months Ended 12/31/11) Defense Technologies (32% of Sales) Commercial Medical Industrial Natural Resources Defense Structures (18% of Sales) (25% of Sales) (6% of LTM Sales) (9% of Sales) (10% of Sales)      Surgical systems Flight control assemblies Glass container Wind power Missile systems electronic manufacturing generation systems    Rotor blade assemblies Patient monitoring and Radar systems  systems Oilfield services therapy devices   Fuselage skins Aircraft applications  Electronic test equipment  Respiratory care devices   Leading edges  Shipboard systems equipment Mine automation  Biodecontamination  Semiconductor capital   Engine ducts  Rotor blade assemblies Agricultural equipment equipment applications 7

Diversified End Markets and Platforms with Strong Industry Fundamentals Medical/Other Annual 6% Military & Space - Natural Resources Expected Structures 9% Growth Rate 18% Commercial Aerospace 8% - 10% Industrial 10% Military & Space - Technologies 3% - 5% $744 Million Military & Space - Military & Space - Structures (3%) - 2% 2011 Technologies Pro forma Sales 32% Natural Resources 3% - 5% Industrial 3% - 5% Commercial Aerospace Medical & Other 4% - 6% 25% Weighted Average Growth Rate 3% - 6% Natural Resources Medical/Other 6% 4% Industrial Military & Space - 4% Structures 22% $636 Million Backlog as Commercial of 12/31/11 Aerospace 30% Military & Space - Technologies 34% 8 Highly Diversified Portfolio in Low Volume, High Mix & High Margin Businesses

Ducommun Goal: Become a Leading Tier 2 Player Tier III Tier II Tier I OEM Manufacture Final assembly, Components or Manufacture aircraft sections and finish and detailed parts subassemblies purchase delivery assemblies • Market consolidation at all levels of the channel to market.  The result will be fewer stronger players at each level. • Continued OEM outsourcing / OEM move to reduce capital. • Tier I and Tier II levels must deploy more capital. • More engineering and integration required at both Tier I and Tier II levels. • Tier III players must move up the value chain or find proprietary niche to survive. DCO must move up the value chain with design and higher level assemblies 9

The “One Ducommun” Platform Forms the Basis for Sustainable Profitable Growth = = Organizational Operational Sustained Profitable + = Excellence Growth Development • Training and development • Lean Six Sigma • Increase value-added • Honesty, professionalism, • Broader capabilities offerings customer orientation, • Production efficiencies • Increase operating margins continuous improvement, • Capacity • Increase profitability of team work • Offshore expansion incremental revenue • Shared services (HR, Supply • Supply chain management • Increase return on capital Chain, Accounting, IT) • Increase shareholder value OD + OE = PG 10

Monitor – 10 Types of Innovation Daryl G. Pelc - Vice President Engineering & Technology Boeing Phantom Works’ OC A&D February presentation reference to Monitor’s “10 Types of Innovation” really resonated, and supports DCO’s Strategy perfectly. 1. Focus investment on the business model, human capital, core competencies. 2. Drive 100% Quality and Delivery with monotonous regularity. 3. Become recognized as a “Best Value Supplier” OD + OE = PG 11