Ducommun Incorporated · NYSE:DCO
Ducommun — Investor Presentation (November 2021)
26 slides from Ducommun's investor presentation, November 2021
Slide 1: Investor Presentation
Investor Presentation November 2021
Slide 2: Disclosures
Disclosures Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be preceded by, followed by or include the words “believes,” “expects,” “anticipates,” “intends,” “
Slide 3: Our Rich History
Our Rich History 1849 1950s 2000s Founded as a Becomes largest Expands into watch business, metals materials Engineered & then general supplier to the Products through store, during Aerospace industry strategic Gold Rush years. in Southern Calif. acquisitions. 1848 1930s 1960s 2017+ California Provi
Slide 4: Company Snapshot
Company Snapshot Manufacturer of complex electronics and structural systems for commercial aerospace and military, defense and space programs Extensive Offerings Diverse Content on Expansive Footprint on Commercial and Key Missile Platforms for Commercial and Military Fixed Wing Aircraft Land, Sea a
Slide 5: COVID-19 Priorities
COVID-19 Priorities Safety & Cleanliness Business Continuity Community Support Strict company-wide All Performance Centers Financially supporting safety practices and continue to operate as the response in the controls to CDC essential businesses to communities in which guidelines implemented meet c
Slide 6: Investment Highlights
Investment Highlights • Balanced portfolio of defense and commercial aerospace Sharpened Business • Transforming into a higher margin innovative solutions provider Strategy • Investment in organic growth and strategic acquisitions • Unique, sought-after range of capabilities Defendable • Established
Slide 7: Two Business Segments – Revenue
Two Business Segments – Revenue Structural Systems Q3 2021 LTM Revenue 45% 36% of 5% Q3 2021 LTM Revenue 55% 24% $638.4 million Electronic Systems 8% 11% 71% 64% of Q3 2021 LTM Revenue 81% Military & Space Commercial Aerospace Industrial 7
Slide 8: Backlog Supports Focus on Aerospace & Defense Strategy
Backlog Supports Focus on Aerospace & Defense Strategy Structural Systems Total Backlog at October 2, 2021 29% 40% of 6% Total Backlog 71% 34% $835.5 million Electronic Systems 60% 10% 10% 60% of Total Backlog 80% Military & Space Commercial Aerospace Industrial 8
Slide 9: We Go to Market as One Company with Broad Capabilities
We Go to Market as One Company with Broad Capabilities Each business is built on a unique set of competencies Focused Performance Centers of Excellence Electronic Systems Structural Systems • Engineered • Circuit card • Integrated • Wire harnesses • Composite • Titanium forming • Aluminum • Engineer
Slide 10: Extensive Offerings on Commercial & Military Fixed Wing Aircraft
Extensive Offerings on Commercial & Military Fixed Wing Aircraft 10
Slide 11: Diverse Content on Key Missile & Munitions Platforms for Land, Sea & Air
Diverse Content on Key Missile & Munitions Platforms for Land, Sea & Air Add Structural section with Nobles, Missile cases, etc. 11
Slide 12: Expansive Footprint on Commercial & Military Rotary Aircraft
Expansive Footprint on Commercial & Military Rotary Aircraft 12
Slide 13: Defense Macro Trends – Defense Spending
Defense Macro Trends – Defense Spending U.S. Defense Spending Trends 800 • Revitalization of military readiness with an increasing 700 Sequestration defense budget with solid funding on missile platforms DoD Budget Authority ($B) 600 500 • Platform upgrades, especially for both military fixed wing a
Slide 14: Growth Drivers
Growth Drivers % of % of Q3 2021 Backlog(1) at Key LTM Revenue(1) 10/2/2021 Platforms F-18 and F-35 Aircraft Military and 71% 60% Patriot and TOW Missiles Space Apache and Blackhawk Helicopters Airbus A320 and A220 Commercial 24% 34% Gulfstream models Aerospace Boeing 737 MAX 14 (1) Remaining 5% of
Slide 15: Why We Win
Why We Win Innovative, value-added solutions for tough technical challenges (e.g., temperature, weight, vibration, pressure) Proprietary engineered products with aftermarket support Quality focus with customer satisfaction continuing to increase Unique and niche capabilities in electronics a
Slide 16: Why to Invest in Ducommun
Why to Invest in Ducommun Strategically Positioned Highly Engineered Products Strong portfolio of highly engineered proprietary products and services Blue Chip Customers Long-term relationships with broad base of blue chip customers Focused Platform Positions Aerospace & Defense focused on large fix
Slide 17: Appendix
>) Ducommun Appendix
Slide 18: Key Facts
Key Facts Ducommun Incorporated Exchange: Ticker NYSE: DCO Share price(1) $50.12 52-week high / low(1) $65.40 / $34.33 Diluted shares outstanding(2) 12.2 million Market cap(1) $597.6 million Cash(2) $9.0 million Net debt outstanding(2) $290.5 million Enterprise value $888.1 million Q3 2021 LTM reven
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Note Regarding Non-GAAP Financial Information: This presentation contains non-GAAP financial measures, including Adjusted EBITDA (which excludes interest expense, income tax expense (benefit), depreciation, amortization, stock-based compensation expense, net gain on dives
Slide 20: Adjusted EBITDA for Q3 2021 LTM
Adjusted EBITDA for Q3 2021 LTM (dollars in thousands) Net income $ 34,354 Interest expense 11,018 Income tax expense 3,506 Depreciation 13,923 Amortization 14,273 Stock-based compensation 10,843 Guaymas fire related expenses 2,553 Adjusted EBITDA $ 90,470 20
Slide 21: Company Snapshot – Additional Details
Company Snapshot – Additional Details Diverse Product Content on Large and Growing Platforms… Non- Proprietary Content Proprietary Military Aircraft Commercial Aircraft ~25 % Proprietary ~75 % JSF Apache B737 Family A320 Other F/A-18 Blackhawk A220 B787 Aerospace Mix1 22 % Commercial Missiles Space
Slide 22: Electronic Systems – Overview
Electronic Systems – Overview End Market Breakdown1 Customer Breakdown1 Platform Breakdown1 Industrial 10% Commercial Missiles Aerospace Raytheon 28% 12% Technologies All Other 29% 29% All Other 46% F-15, 3% Northrop F/A-18, 3% Other Mil. Grumman Mil. Fixed Wing Military & Space 13% Helicopters 13%
Slide 23: Electronic Systems – Key Sectors & Applications
Electronic Systems – Key Sectors & Applications Military Aircraft Commercial and Missiles Naval Space and Communications and UAVs Business Aviation TOW Missile Joint Strike Virginia-class Viasat Inmarsat 6 Patriot MQ-9 Reaper AN/BLQ-10 Fighter Submarine B787 B737 MAX Tomahawk SM3/6 F/A-18 Predator A
Slide 24: Structural Systems – Overview
Structural Systems – Overview End Market Breakdown1 Customer Breakdown2 Platform Breakdown1 All Other Business Jets 6% All Other 6% Boeing 20% Boeing 24% 737 MAX Widebody 24% 10% Boeing 787 All Other 4% Narrowbody 41% 46% Other Spirit Widebody 9% 6% Airbus Missiles A320 & A220 6% 16% Raytheon Techno
Slide 25: Structural Systems – Key Processes
Structural Systems – Key Processes Missiles, Ground Vehicles, Commercial Aircraft Military Rotorcraft Business Jets and Other B737 A320 Apache Blackhawk TOW Missile SM2 Global 7500/8000 G500/600 A220 CH-47 JSF F/A-18 G650/700 Titanium hot and super plastic Metal bond blades formed detailed parts and
Slide 26: Tier 1 Supplier to Defense Majors and Commercial OEMs
Tier 1 Supplier to Defense Majors and Commercial OEMs Defense Majors and Commercial Aerospace OEM Customers Leading manufacturer mainly as a Tier 1 supplier of complex electronics and structural systems for the commercial aerospace, defense, and space markets Revenue by End Market Industrial 6% Tie