2011 FACT BOOK Textron Inc

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2011 FACT BOOK Textron Inc 2011 FACT BOOK Textron Inc. is an $11.3 billion multi-industry company operating in 25 countries with approximately 32,000 employees. The company leverages its global network of aircraft, defense and intelligence, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, E-Z-GO, Greenlee, Jacobsen, Kautex, Lycoming, Textron Systems and Textron Financial Corporation. Textron Inc. consists of numerous subsidiaries and operating divisions. Please refer to the back cover for legal entity structure. KEY EXECUTIVES Scott C. Donnelly was named chief executive officer in December 2009 and chairman of the board in September 2010. Donnelly joined Textron as executive vice president and chief operating officer in June 2008 and was promoted to president in January 2009. Prior to joining Textron, Donnelly was president and CEO for General Electric (GE) Aviation. He also held various other management positions since joining GE in 1989. Scott C. Donnelly Scott A. Ernest John L. Garrison Jr. Frederick M. Strader Chairman and Cessna Aircraft Bell Helicopter Textron Systems Chief Executive Officer President and CEO President and CEO President and CEO Frank T. Connor joined Textron as executive vice president and chief financial officer in August 2009. Connor came to Textron after a 22-year career at Goldman, Sachs & Co. where, most recently, he was managing director and head of Telecom Investment Banking. Prior to that, he served as Goldman, Sachs & Co.’s chief operating officer of Telecom, Technology and Media Investment Banking. Frank T. Connor J. Scott Hall John D. Klopfer Executive Vice President Industrial Segment Aviation Finance and Chief Financial Officer and Greenlee President President and CEO Revenue by Segment Revenue by Customer Type Revenue by Geography Bell Helicopter 31% Commercial 68% U.S. 63% Cessna 26% U.S. Government 31% Europe 14% Industrial 25% Finance 1% Asia Pacific 9% Textron Systems 17% Latin America Finance 1% & Mexico 7% Canada 3% Middle East 3% Africa 1% FINANCIAL HIGHLIGHTS (Dollars in millions except per share data) 2011 2010 Change 2011 2010 Change Revenues $11,275 $10,525 7 % Net Debt International revenues % 37% 36% Finance segment debt $1,974 $3,660 $(1,686) Segment profit 1 $÷÷«591 $÷÷«553 7 % Manufacturing group debt 2,459 2,302 157 $÷÷«242 $÷÷÷«92 163 % Income from continuing operations Total debt 4,433 5,962 (1,529) Manufacturing group debt 2 $÷2,459 $÷2,302 7 % Consolidated cash and equivalents (885) «(931) 46 Shareholders’ equity $÷2,745 $÷≥2,972 (8)% Debt (net of cash) to total capital – Manufacturing group 2 37% 32% 16 % Net debt $3,548 $5,031 $(1,483) Common Share Data Diluted EPS from continuing operations $÷÷0.79 $÷÷0.30 163 % Senior Short-Term Dividends per share $÷÷0.08 $÷÷0.08 – (As of March 1, 2012) Long-Term Commercial Paper 307,255 302,555 2 % Diluted average shares outstanding (in thousands) Textron Inc. Credit Ratings Key Performance Metrics S&P BBB- A3 ROIC 3 8.4% 8.0% Fitch BBB- F3 Net cash provided by operating activities of continuing Moody’s Baa3 P3 operations – Manufacturing group – GAAP 2 $÷÷«761 $÷÷«730 4 % Manufacturing cash flow before pension contributions – Non-GAAP 2, 4 $÷1,000 $÷÷«759 32 % Pension contributions $÷÷«642 $÷÷«417 54 % Capital expenditures $÷÷«423 $÷÷«270 57 % 1 Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes interest expense, certain corporate expenses and special charges. The measurement for the Finance segment excludes special charges and includes interest income and expense along with intercompany interest expense. 2 Our Manufacturing group includes all continuing operations of Textron Inc., except for the Finance segment. 3 Calculation of return on invested capital (“ROIC”) is provided on page 12. 4 Calculations of Manufacturing cash flow before pension contributions are provided on page 11. TEXTRON 2011 FACT BOOK 1 Cessna Sales Breakdown Aftermarket Sales (Dollars in millions) By Product Line By Customer $727 $721 $666 $667 Aftermarket 24% U.S. Government 1% $606 $587 Fractional Ownership 3% $562 $502 Aircraft Sales 76% Corporate 96% $443 $381 $354 $330 $302 $270 $229 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 CESSNA KEY DATA % Cessna’s share of 26 Textron 2011 revenues (Dollars in millions) 2011 2010 2009 2008 2007 Cessna Cessna is the world’s leading general aviation Units sold: company based on unit sales with two principal Business jets1 183 179 289 467 387 Caravans 93 95 97 101 80 lines of business: Aircraft sales and aftermarket Single-engine 413 261 355 733 807 Backlog, excluding CitationAir $1,889 $2,928 $4,893 $14,530 $12,583 services. Aircraft sales include Citation jets, Caravan Revenues $2,990 $2,563 $3,320 $÷5,662 $÷5,000 single-engine utility turboprops, single-engine piston Segment profit 2 $÷÷«60 $÷««(29) $«÷198 $÷÷«905 $÷÷«865 Segment profit margin 2.0% (1.1)% 6.0% 16.0% 17.3% aircraft and lift solutions by CitationAir. Aftermarket Total assets $2,078 $2,294 $2,427 $÷2,955 $÷2,459 Capital expenditures $÷«101 $÷÷«47 $÷÷«65 $÷÷«285 $÷÷«163 services include parts, maintenance, inspection Depreciation and amortization $÷«109 $÷«106 $÷«115 $÷÷«105 $÷÷÷«86 and repair services. 1 In 2008, units sold include the sell through of one fractional unit at CitationAir. Units sold in 2007 exclude one CitationAir delivery in which the fractional units were not sold as of the end of the year. 2 In 2009, segment profit includes a $50 million pre-tax gain on the sale of the assets of CESCOM, Cessna’s aircraft maintenance tracking service line. FAST FACTS > Approximate revenues by region: U.S.: 70%, Europe: 11%, Latin America and STRATEGIC STEPS FORWARD Mexico: 11%, Asia-Pacific: 4%, Africa: 2%, Middle East: 1%, and Canada: 1%. > Develop and manufacture innovative and customer-focused light and midsize > Cessna has approximately 7,800 employees worldwide. business jets, single-engine utility turboprop and single-engine piston aircraft. > Manufacturing facilities located in Wichita and Independence, Kansas; Columbus, > Create a globally competitive cost profile. Georgia; and Chihuahua, Mexico. > Grow the business by investing in new product development and block point changes > In its 85-year history, Cessna has delivered approximately 193,000 aircraft, including to current models. more than 154,000 single-engine piston airplanes; more than 2,000 Caravans; more > Bolster long-term customer loyalty by providing differentiated and consistently superior than 1,000 military jets and more than 6,200 Citation business jets. Cessna has aftermarket solutions around the world. delivered twice as many business jets as its closest competitor in the very light, > Leverage and ensure alignment of key business and continuous improvement processes. light and midsize segments. > Foster an environment that attracts, develops and retains high performing talent. > McCauley propellers are on more than 250,000 aircraft around the world – a testimony to our continuing commitment to excellence. > Extend the Cessna brand in key international geographies. > Cessna Citations are registered in more than 90 countries and represent the largest fleet of business jets in the world. > Certified at Mach 0.92, the Citation X is the world’s fastest business jet in service. > Cessna operates ten Citation Service Centers: eight across the U.S., one at Le Bourget Airport in Paris, France, and one at Prague Ruzyne Airport in Prague, Czech Republic. Cessna has announced a new European Citation Service Center to open in Spain. Authorized Independent Service Centers/Stations are located in 27 countries throughout the world. 2 TEXTRON 2011 FACT BOOK Pre-owned Citations for Sale Number of Citations in Service by Age Distribution (As a percent of fleet) Number of units 20% > 10 Years 7,000 6–10 Years < 5 Years 15% 5,250 10% 3,500 5% 1,750 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Source: AMSTAT and Cessna estimates Source: Cessna estimates MAJOR PRODUCTS Std/Max Maximum First Seating Capacity Cruising Range (IFR w/ Unit Price Engine Engine Delivery (Including Pilots) Speed (kts) NBAA reserves) (in millions) Manufacturer Model Avionics Citation Model Mustang 2006 6 340 1,150 $ 3.1 Pratt & Whitney PW615F Garmin G1000 M2** 2013 8 400 1,300 4.3 Williams International FJ44-1AP Garmin G3000 CJ2+ 2006 9/10 418 1,613 7.0 Williams International FJ44-3A-24 Collins Pro Line 21 CJ3 2004 9/10 416 1,875 8.2 Williams International FJ44-3A Collins Pro Line 21 CJ4 2010 10/11 453 2,002 9.0 Williams International FJ44-4A Collins Pro Line 21 XLS+ 2008 11/14 441 1,858 12.6 Pratt & Whitney PW545C Collins Pro Line 21 Latitude** 2015 10/10 442 2,300 14.9 Pratt & Whitney PW306C Garmin G5000 Sovereign 2004 11/14 458 2,847 17.6 Pratt & Whitney PW306C Honeywell Primus EPIC Citation X 1996 11/14 525 3,070 21.7 Rolls-Royce AE3007C1 Honeywell Primus 2000 Citation TEN** 2013 11/14 527 3,245 21.7 Rolls-Royce AE3007C2 Garmin G5000 Turboprop Model Caravan 1984 8/14 186 1,060* $ 1.9 Pratt & Whitney PT6A-114A Garmin G1000 Grand Caravan 1986 10/14 175 1,007* 2.0 Pratt & Whitney PT6A-114A Garmin G1000 Single-engine Piston 162 SkyCatcher 2009 2 113 400* $ 0.1 Continental Motors O-200D Garmin G300 172R Skyhawk 1997 4 122 696* 0.3 Textron Lycoming IO-360-L2A Garmin G1000 172S Skyhawk SP 1998 4 124 610* 0.3 Textron Lycoming IO-360-L2A Garmin G1000
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