FACT BOOK 2015 Meet Our Leadership Team

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FACT BOOK 2015 Meet Our Leadership Team FACT BOOK 2015 Meet Our Leadership Team Eric Salander Kriya Shortt Tom Hammoor Senior Vice President, Senior Vice President, President, Chief Financial Officer Sales & Marketing Beechcraft Defense Company Message from Scott As a valued Textron Aviation customer, you are integral to our success, and we want to celebrate our accomplishments with you. I am pleased to share our company fact book, highlighting a momentous 2015 and looking forward at what lies ahead. We know that providing you with the best ownership experience begins with Brad Thress Michael Thacker Ron Draper Senior Vice President, Senior Vice President, Senior Vice President, offering the right products and services positioned to meet your mission. Customer Service Engineering Integrated Supply Chain From our versatile fleet of aircraft to a renowned global service network unmatched in the industry, our portfolio continues to expand with a broad range of new investments announced last year. In 2015, we saw total revenue grow to $4.8 billion. We continue to build on that growth, relying on your valued input to bring new products to market on time. Throughout our journey, we’ll remain committed to upholding the integrity of our brands, ensuring we deliver on our promise Christi Tannahill Bill Schultz Jim Walters to offer you the most capable and innovative solutions in general aviation. Senior Vice President, Senior Vice President, Senior Vice President, Interior Design & Engineering Business Development – China Human Resources & Communications Sincerely, Scott Ernest President and CEO Textron Aviation Doug May Dave Rosenberg Blake Meyen Vice President, Vice President, Vice President, Piston Aircraft Integration & Strategy General Counsel & Secretary TEXTRON INC. TEXTRON AVIATION Textron Inc. is a $13.4 billion multi-industry company with approximately 35,000 employees. The company leverages Textron Aviation is home to the Beechcraft, Cessna and Hawker brands, and continues to lead general aviation through its global network of aircraft, defense and intelligence, industrial and finance businesses to provide customers with two principal lines of business: aircraft sales and aftermarket. Aircraft sales include business jet, turboprop and piston innovative solutions and services. Textron is known around the world for its powerful brands such as Beechcraft®, Bell aircraft, as well as special mission and military aircraft. Aftermarket includes commercial parts sales and maintenance, Helicopter, Cessna®, E-Z-GO®, Greenlee®, Hawker®, Jacobsen®, Kautex, Lycoming, Textron Systems, Textron Financial inspection and repair services. Corporation and TRU Simulation + Training. MAJOR PRODUCTS FINANCIAL HIGHLIGHTS Std/Max Maximum Textron Revenue by Segment First Seating Capacity Cruising Range (IFR w/ Engine Engine Delivery (including pilots) Speed (kts) NBAA reserves) Manufacturer Model Avionics Dollars in millions except per share data 2015 2014 Change Textron Aviation 36% Cessna Citation® Jets Citation Mustang® 2006 6 340 1,200 Pratt & Whitney PW615F Garmin G1000 Bell 26% Revenues $13,423 $13,878 (3)% Citation M2® 2013 8 404 1,540 Williams International FJ44-1AP-21 Garmin G3000 (Intrinzic™) International revenues % 38% 37% Industrial 26% Citation CJ3+® 2014 8/10 416 2,040 Williams International FJ44-3A Garmin G3000 (Intrinzic™) Textron Systems 11% Citation CJ4® 2010 9/11 451 2,170 Williams International FJ44-4A Collins Pro Line 21 Segment profit1 $1,255 $1,214 3% Finance 1% Citation XLS+® 2008 11/14 441 2,100 Pratt & Whitney PW545C Collins Pro Line 21 Income from continuing operations $698 $605 15% Citation Latitude® 2015 9/11 446 2,850 Pratt & Whitney PW306D1 Garmin G5000 (Intrinzic™) Manufacturing group debt2 $2,697 $2,811 (4)% Citation Sovereign®+ 2013 11/14 460 3,190 Pratt & Whitney PW306D Garmin G5000 (Intrinzic™) Citation X®+ 2014 11/14 528 3,450 Rolls-Royce AE3007C2 Garmin G5000 (Intrinzic™) Shareholders' equity $4,964 $4,272 16% Manufacturing group debt-to-capital (net of cash)2 26% 33% New Product Development Citation Longitude® 20171 11/14 476 3,400 Honeywell HTF-7700 Garmin G5000 (Intrinzic™) Citation Hemisphere® 20192 TBA TBA 4,500 TBA TBA TBA Common Share Data SETP 20182 TBA +280 +1,500 GE TBA TBA Diluted EPS from continuing operations $2.50 $2.15 16% Dividends per share $0.08 $0.08 – Turboprops Textron Revenue by Type Cessna Caravan® 1985 9/14 186 1,0603 Pratt & Whitney PT6A-114A Garmin G1000 Diluted average shares outstanding (in thousands) 278,727 281,790 (1)% Cessna Grand Caravan® EX 2013 10/14 185 9013 Pratt & Whitney PT6A-140 Garmin G1000 Beechcraft King Air® C90GTx 2010 8/9 271 1,260 Pratt & Whitney PT6A-135A Collins Pro Line Fusion Beechcraft King Air® 250 2011 9/11 310 1,740 Pratt & Whitney PT6A-52 Collins Pro Line Fusion Key Performance Metrics Commercial 68% Beechcraft King Air® 350i 2010 9/11 312 1,796 Pratt & Whitney PT6A-60A Collins Pro Line Fusion ROIC3 12.0% 12.2% U.S. Government 24% Beechcraft King Air® 350iER 2010 9/11 303 2,455 Pratt & Whitney PT6A-60A Collins Pro Line Fusion Net cash provided by operating activities of continuing Other Military 7% Pistons operations-Manufacturing group-GAAP2 $1,038 $1,097 (5)% Finance 1% Cessna Skyhawk® 172S 1998 4 124 6403 Textron Lycoming IO-360-L2A Garmin G1000 Manufacturing cash flow before pension Cessna Skylane® 182T 1996 4 145 9153 Textron Lycoming TIO-540-AB1A5 Garmin G1000 contributions-Non-GAAP2,4 $631 $753 (16)% Cessna Turbo Stationair® T206H 1998 6 164 7033 Textron Lycoming TIO-540-AJ1A Garmin G1000 Cessna TTx® 2013 4 235 1,2503 Continental Motors TSIO-550-C Garmin G2000 Manufacturing pension contributions $68 $76 (11)% Beechcraft Bonanza® G36 20054 6 176 9203 Continental Motors I0-550-B Garmin G1000 Capital expenditures $(420) $(429) (2)% Beechcraft Baron® G58 20054 6 202 1,4803 Continental Motors I0-550-C Garmin G1000 Military5 Net Debt Beechcraft T-6 2000 2 316 1,382 Pratt & Whitney PT6A-68 Esterline CMC 3000 Finance group debt $913 $1,063 $(150) Beechcraft AT-6 TBA 2 316 1,725 Pratt & Whitney PT6A-68D Esterline CMC 3000 Textron Revenue by Region Scorpion™ TBA 2 Manufacturing group debt $2,697 $2,811 $(114) 450 2,400 Honeywell TFE 731 TBA U.S. 62% 1. Estimate of first delivery 2. Estimated first flight 3. 45 minute fuel reserve 4. Current configuration with G1000 avionics 5. Contact Beechcraft Defense Company for aircraft and support package pricing Total debt $3,610 $3,874 $(264) Europe 13% Asia Pacific 10% Less: Consolidated cash equivalents $1,005 $(822) $(183) Latin & South America 8% AFTERMARKET SALES Canada 4% (Dollars in millions) 1,418 Net Debt $2,605 $3,052 $(447) Middle East 2% 1,386 Africa 1% 1. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment 916 profit for the Manufacturing segments excludes interest expense, certain corporate expenses and acquisition and restructuring costs related to the Beechcraft acquisition. The measurement for the Finance segment includes interest 793 income and expense along with intercompany interest income and expense. 721 (As of February 1, 2016) 727 2. Our Manufacturing group includes all continuing operations of Textron Inc. except for the Finance segment. 667 Short-Term 666 3. Calculation of return on invested capital (“ROIC”) is provided on page 12 of the Textron Fact Book. Senior Commercial 606 587 4. Calculations of Manufacturing cash flow before pension contributions are provided on page 11 of the Textron Fact Book. Long-Term Paper Outlook 562 502 Textron Inc. 443 381 354 Credit Ratings 330 S&P BBB A2 Stable Moody's Baa3 P3 Positive 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 One Citation Leads CITATION LATITUDE MILESTONES 2015 to Another A NEW CITATION TO GO THE DISTANCE OPPORTUNITY ABOUNDS IN THE Throughout the last 20 years, the large cabin Rollout of the FAA Customer 16 Latitudes CITATION FAMILY first production segment has seen little development – until now. certification deliveries delivered 2015 marked the start of a new era for the lineup of Latitude awarded begin Enter the Citation Hemisphere. With a range of the world’s best-selling business jets. The public 4,500 nautical miles, this clean-sheet-design, received its first look at our newest products long-range business jet expands the reach of the designed to combine range and ultimate comfort Citation line and marks our entry into the large with the proven innovative capabilities only a jet segment. Backed by our industry-leading- Citation can offer. commitment to product innovation and design, the Citation Hemisphere will offer the latest technology LATITUDE DELIVERS and the most spacious cabin in its class, allowing Upon entering the market in August, the you and your business to go the distance. 2,700-nautical mile range Citation Latitude was recognized for offering an unmatched combination of performance and comfort with the lowest operating costs in its class. Within just four months, we placed 16 Latitudes into the hands of customers from across the globe – a true testament to the market’s need for the exceptional capabilities and low total ownership costs the Latitude brings to the midsize category. LONGITUDE PREPARES FOR TAKEOFF When the 3,400-nautical mile range Citation Longitude made its debut at the 2015 NBAA Convention and Exhibition in Las Vegas, customers and industry observers had the opportunity to view this super-midsize jet designed to revolutionize the segment. The Longitude pairs its class-leading cabin with an optimal combination of performance and efficiency, giving you more room, more range and higher cruise speeds – all at the lowest total ownership costs in its class. In 2016, we’ll celebrate the first flight of the Citation Longitude, continuing our momentum as we bring this one-of-a-kind aircraft to market. Leading the From pilots stepping up to the controls of a Citation M2 for the first time, To date, we have delivered more than 1,800 CJs to customers around to companies taking their business to new heights in the top-performing the world.
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