Investor Presentation

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Investor Presentation

• November 2009

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Forward Looking Statement
The statements made in this presentation include
forward-looking statements that involve risks and
uncertainties. The companys future financial
results could differ materially from those
anticipated due to the companys dependence on
conditions in the airline industry, the level of
new commercial aircraft orders, production rates
for Boeing commercial aircraft, the C-17 and
Apache helicopter rotor blade programs, the
deterioration in credit markets, the level of
defense spending, competitive pricing pressures,
manufacturing inefficiencies, start-up costs and
possible overruns on new contracts, technology
and product development risks and uncertainties,
product performance, risks associated with
acquisitions and dispositions of businesses by
the company, increasing consolidation of
customers and suppliers in the aerospace
industry, possible goodwill impairment,
availability of raw materials and components from
suppliers, and other factors beyond the companys
control. See the companys Form 10-K for the year
ended December 31, 2008 for a more detailed
discussion of these and other risk factors and
contingencies.
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Todays Agenda

• Business Fundamentals
• Financial Overview
• 2012 Growth Initiative - -
• Driving to 1 Billion in 2012 by Profitable
  Growth

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Investment Highlights

• Leading global provider of innovative,
  value-added products and solutions to the
  aerospace and defense industries
• Strong relationships with blue chip customer base
• Increasingly diversified customer and business
  mix
• Favorable long-term sector outlook and trends
• Successful track record of organic growth and MA
• 2012 Growth Initiative positions company for
  sustained profitable growth
• Strong financial position and liquidity to fund
  growth

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Business Fundamentals
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Vision Statement

• Ducommun, a global partner
• Growing profitably to 1 Billion by 2012
• Powered by the development and full commitment of
  our people
• Driving innovative solutions and services to the
  aerospace, defense and high technology markets

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Core Values

• Honesty
• Professionalism
• Customer Orientation
• Continuous Improvement
• Teamwork

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One Ducommun Platform
Operational Excellence


Sustained ProfitableGrowth
OrganizationalDevelopment

• Training and development
• Honesty, professionalism, customer orientation,
  continuous improvement, team work
• Shared services (HR, leadership training)

• Lean Six Sigma
• Broader capabilities
• Production efficiencies
• Capacity
• Offshore expansion
• Supply chain management

• Increase revenue
• Increase margins
• Increase profitability of incremental revenue
• Increase shareholder value

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Strategic Business Units
Ducommun Incorporated
67 of LTM09 Revenue
33 of LTM09 Revenue
Ducommun Technologies (DTI)
Ducommun AeroStructures (DAS)
Designs, engineers, and manufactures
electromechanical subassemblies, and provides
engineering, technical and program management
services principally for the aerospace and
military markets
Engineers and manufactures aerospace structural
components and subassemblies for domestic and
foreign commercial and military aircraft,
helicopter and space markets

• Engineering, technical, and program management
  services
• Illuminated panels, advanced microwave switches,
  and high-performance motors and resolvers
• Integrated mechanical and electromechanical
  subassemblies

• Composites and metal bonding
• Metal forming
• Chemical milling
• Sophisticated structural manufacturing and
  assemblies

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Aerospace Components and Subassemblies
Rotor blades
Metal forming and assemblies
Composite structures, such as winglets
Electromechanical enclosures
Advanced microwave switches
High-performance motors and resolvers
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Diversified By Industry Program
Boeing 737NG, 747, 767, 777, 787 Airbus A320,
A330, A340, A380 Bombardier CRJ700, CRJ900
Embraer 170, 190, 450, 500 various Bell and
Carson helicopter programs

• Commercial Programs
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Boeing C-17, F-15, F-18 Lockheed Martin F-16,
F-22 various Sikorsky, Boeing, and Agusta
Westland helicopter programs various aircraft
and shipboard electronics programs
Military Programs 62
Various unmanned launch vehicle and satellite
programs
Space Programs 2
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Diversified Base of Blue Chip Customers
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Diversified Business Mix
United
Technologies,
Spirit, 5
7
Raytheon, 7
Other, 43
US
Government,
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Boeing, 31
2001 Sales 213M
LTM 2009 Sales 427M
36 Commercial 62 Military 2 Space
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Top 6 Programs
Boeing AH-64 Apache
Boeing 737NG
Sikorsky UH-60 Blackhawk
Boeing F/A-18 Super Hornet
Boeing C-17 Globemaster III
Boeing CH-47 Chinook
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Financial Overview
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Favorable Long-Term Market Outlook
Projected Order Backlog ( Billions)
Source Teal Group, March 2009
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Favorable Long-Term Market Outlook
Order BacklogNumber of Aircraft in Backlog
U.S. Defense Budget In Billions
Sources Airbus 2008 10K, Boeing website
Source U.S. Government OMB, FY 2010
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Consistent Revenue Growth
13.7 CAGR
Millions
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Operating Income
12.2 CAGR
Millions
2008 excludes non-cash goodwill impairment
charge of 13.1 million pre-tax and 8.0
million, or 0.76 per diluted share, after-tax
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Cash Flow from Operations
23.5 million average cash flow
Millions
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Liquidity Financial Resources
Capital Availability to Support Future Growth
(in thousands)

• in millions

Target Debt to Capital Ratio is 30 - 35
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Solid Book of Future Business - Backlog
Millions
Firm Price/Quantity/Delivery Date as of 12/31
except 10/3/2009
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2012 Growth Initiative
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1 Billion by 2012
Total 1 Billion
Acquisitions
OrganicGrowth
Millions
Includes the sum of 404M 2008 sales plus
run-rate of year-end 2008 acquisition
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Organic Growth Goal 250M by 2012
Organic Growth Recent Program Wins
Bell Helicopter/Boeing V-22 Osprey Exhaust Ducts
Embraer MSJ/MLJ Legacy 450/500 Ailerons and
Spoilers
Apache AH-64D Main Tail Rotor Blades
Carson / Sikorsky S-61 Main Rotor Blades
Raytheon F/A-18 and F-15 Radar Racks
Bombardier CRJ 700/900 Aft Fuselage Panel
Assemblies
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Expanding Capabilities To Support Tier 1 and OEMS
OEM
Tier 3
Tier 2
Tier 1
Final assembly, finish and delivery
Manufacture aircraft sections and purchase
assemblies
Manufacture subassemblies
Components or detailed parts
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MA Growth Goal 300M by 2012

• Disciplined Approach to Strategic MA
• Financial Criteria
• Revenues of 50M
• Track record of proven performance
• High margins
• Operating Criteria
• Aerospace, defense or related markets
• Sustainable competitive advantages
• Operating synergies
• Complementary capabilities
• Makes us more meaningful to our customers
• Engineered product, designed into programs

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Track Record of Strategic M A
Founded in 1849
May 2001 Composite Structures
August 2003 DBP Microwave
May 2006 WiseWave Technologies
December 2008 Dynabil Industries
1849
2001
2003
2005
2007
2006
2008
August 2001 certain assets of Fort Defiance
January 2006 Miltec Corporation
September 2006 CMP Display Systems
Ducommun has deployed more than 110 million in
the last three years, completing multiple
strategic acquisitions.
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Sound Strategy for Profitable Growth

• Execute on 2012 organic and MA growth objectives
  
• Leverage existing customer base and relationships
  
• Develop new products and technologies
• Build brand equity and barriers to entry
• Continuously align cost structure with revenue
  opportunity
• New One Ducommun platform and related
  investments drive profitability of incremental
  growth organic and acquired

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Progress Report

• Added new customers
• Took on more complex, value-added work
• Improved quality, on-time delivery and costs
• Solid backlog of 386M
• 2.5 M in annual cost savings
• Named to 200 Best Small Businesses by Forbes

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Investment Highlights

• Leading global provider of innovative,
  value-added products and solutions to the
  aerospace and defense industries
• Strong relationships with blue chip customer base
• Increasingly diversified customer and business
  mix
• Favorable long-term sector outlook and trends
• Successful track record of organic growth and MA
• 2012 Growth Initiative positions company for
  sustained profitable growth
• Strong financial position and liquidity to fund
  growth

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Appendix
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Company Overview

• Founded in 1849 oldest company in California
• Premier supplier to the worldwide aerospace and
  defense industries
• Domestic and international commercial customers
  and military and space programs
• 2009 LTM revenue of 427M
• 1,900 employees in six states, Thailand and
  Mexico
• Strong core business and long track record MA

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Strategic Geography
Ducommun AeroStructures (DAS)
Ducommun Technologies (DTI)
Thailand
Miltec
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Main Components of Backlog
(As of 10/3/2009)
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Institutionalize Goal Deployment Policy (GDP) X
Matrix Process
Review each IPTs Target to Improve (TTI) at
Monthly Mgmt. Meeting with IPT Leaders and Staff
Site Goals
Define performance for each Integrated Program or
Process Team (IPT)
AOP
LRP
Use CI Calendar to drive focus commitment to
Kaizen Events / Lean Six Sigma Projects to
support TTIs
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GDP links goals from LRP to individual
performance plans
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Case Study Boeing Supply Chain

• Longtime supplier of spoilers for 737
• Lost contract to lower-cost supplier with a
  different process
• New supplier unable to get up to speed
• Contract won back new facility built in Guaymas,
  Mexico
• Life of program contract and margins are
  maintained

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• Established 1849