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Textron Aviation Inc 2017 Kansas Procurement Conference Justin Salmans March 30, 2017 Company Private 1 Welcome Thanks to all the small business owners, representatives from industries as well as federal, state, and local agencies, who are participating in this event and who have worked so hard to make it successful. Textron Aviation Inc. (TAI) is honored to be the host of this event and hope that it proves to be beneficial to everyone in attendance. 2 Company Private Textron Segments Bell Helicopter Textron Systems Textron Aviation Industrial Finance <1% 23% 13% 36% 28% Bell Helicopter Unmanned Systems Cessna E-Z-GO Textron Financial Weapon & Sensor Beechcraft Greenlee Systems Hawker Jacobsen Marine & Land Kautex Systems TRU Simulation + Training Inc. 2016 Revenue $13.8B Company Private Textron Aviation Inc. $4.9 Billion (2016 Revenue) 70% Aircraft Sales 30% Aftermarket Broader selection of products, larger service footprint Company Private Textron Aviation Product Lineup Jets Turboprops Pistons Military Citation X+ King Air 350ER Baron G58 AT-6 Citation Sovereign+ King Air 350i Bonanza G36 T-6C Citation Latitude King Air 250 TTx Scorpion Citation XLS+ King Air C90GTx Turbo Stationair Citation CJ4 Grand Caravan EX Turbo Skylane JT-A Citation CJ3+ Caravan Skyhawk Citation M2 Citation Mustang Company Private 5 Textron Aviation Inc. Jets Turboprop Piston Mustang King Air 350 172S Skyhawk SP M2 King Air 250 J182 Turbo Skylane JT-A CJ2+/CJ3+/CJ4 King Air C90 Cessna TTx XLS+ Caravan T206H Turbo Stationair Latitude Grand Caravan EX Baron Sovereign+ T-6 Bonanza Citation X+ Installed Base Installed Base Installed Base Over 9,000 Over 9,000 Over 180,000 Broad product offering with large installed base Company Private Commitment to Future Growth Scorpion Hybrid ISR/Strike Aircraft Cessna Longitude/Denali/Hemisphere Special Missions Arctic Cat Investing for future growth organically and through acquisitions Company Private Continued Investment In New Products Citation Latitude 2,700 EISnm 2015 Citation Longitude 3,500 nm EIS 2017 Citation Hemisphere 4,500 nm FIRST FLIGHT 2019 Company Private 38 New Product Development Continues • Citation Longitude • Citation Hemisphere • Denali • Scorpion Company Private 9 Highlights • Citation Hemisphere cabin debuts at NBAA, key suppliers announced • Performance increase announced for Citation Longitude • Second Longitude takes flight • First flight of production conforming Citation Hemisphere interior Scorpion jet • Successful weapons test for Scorpion at White Sands • 58 Citation Latitudes in field making it the clear market leader Citation Longitude arrives at NBAA Company Private 10 Special Missions Special Missions Includes All Platforms Except T-6, AT-6 & Scorpion Company Private 11 Platform Versus Mission Matrix X = Mission Exists CJ4 M2 TTx 172 250 350 206 G36 G58 X = Mission Growth CJ3+ XLS+ 182T C90GTx Caravan Latitude Mustang Citation X Caravan EX Caravan Sovereign+ Aerial Survey x x x x x x x x x x x x Air Ambulance x x x x x x x x x x x x x x x Flight Inspection x x x x x x x x x x Surveillance x x x x x x x x x x x x x x Training x x x x x x x x x x x x x Utility/Transport x x x x x x x x x x x x x x x x x x x Parachute x x x x x x Float Plane x x x Strike x x x Broadest special mission portfolio in general aviation Company Private 12 Supply Chain Direction • Standardize Transactions • Automate Where Feasible • Integrate the new acquisitions • Execute Scorpion/Longitude/Denali • Go Faster! Company Private Supply Chain Priorities • Develop innovation; supply reliability; and value enhancements, what do you have that sets you apart in the New Supply Chain • Embrace technology • Collaboration and partnership • Environmental stewardship and social responsibility • Small Business focus in procurement activities Company Private 14 Small Business Program Roadmap Strengthening our Small Business Program as part of a World Class Supply Chain World Class Performance System/Process Enhancements 24/7 Legal Merger of Global Supply Cessna/Beech Small Business Chain With Resources 2017 Policy updates Strong Small SBLO position Evaluate creation Business Processes and System created for 2016 of Commercial Program Tools System TAI Plan for new entity Business Size – Accurate & Adoption of annual 2015 Company verification Timely Annual Value and Strength certification form Supplement 3 via SAM and Reporting rollout D&B SBLO / Buyer Improvements to Special Engagement at We Are Here! Mission TA Form early NPD Stages Program Enhancing PO SOA Process >$150 Integration Projects and Training Ongoing SB Training/Awareness Continued Outreach for new entity Processes/People/Technology Company Private 15 Want to be a Supplier of TAI or BDC? • Register in the Potential Supplier Database • What TAI and BDC look for when considering potential suppliers o Supplier’s capabilities relative to the need for those capabilities (i.e. machining, sheet metal, composite, major assembly, additive manufacturing, design-to-build, systems integration, distribution, etc…) o Supplier qualifications (AS9100, Nadcap, etc…) o Current quoting opportunities and timing o Completed Confidentiality Agreement o Small Business Ownership (including Disadvantaged, Veteran-Owned, Woman Owned Hub Zone) o Completion of info requested at the website listed below: https://ww2.txtav.com/Supplier/BecomeSupplier 16 Company Private Focus on Small Business • Triads & Conferences • TAI & BDC now have a combined Potential Supplier Database • IT is upgrading the annual certification process to be more user friendly for the supply base • Continue to focus on including small minority businesses in the RFP process Textron Aviation Inc. Beechcraft Defense Company, LLC. Small Business Liaison Officer: Small Business Liaison Officer: Candace Stegen Poonam Richardet [email protected] SCM_Supplier_Diversity Company Private 17 Focus on Compliance Textron Aviation Inc. Beech Defense Co. • Acting under a FAR 12 Commercial • Acting under a FAR 15 ISR/SSR Plan with current focus on: environment with current focus on: • Special Mission Compliance to FAR • T-6 Trainer Compliance to FAR • Annual business size and certification • Annual business size and certification updates updates • Compliance with The North American • Compliance with The North American Industry Classification System (NAICS) Industry Classification System (NAICS) • NEW! FAR 52.203-19 - (January 2017) • Execution of Supplier Small Business Prohibition on Requiring Certain Internal Subcontracting Plan’s when over Confidentiality Agreements or threshold Statements Company Private 18 Thank You For Your Attendance Today! Beechcraft Defense Company, LLC. Small Business Liaison Officer: Poonam Richardet Beechcraft SCM_Supplier_Diversity AT-6 Wolverine Textron Aviation Inc. Beechcraft Small Business Liaison Officer: T-6 Texan Candace Stegen [email protected] Textron AirLand Scorpion Company Private 19 4 .
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