160177.PFC1 3/2/06 9:47 AM Page FC1 Growing Opportunity 2005 Fact Book 160177.PIFC2 3/2/06 9:48 AM Page IFC2 Textron Inc. is a $10 billion multi-industry company operat- Share Ownership ing in 33 countries with approximately 37,000 employees in our continuing operations.The company leverages its global network of aircraft, industrial and finance businesses 15% Foreign Institutions 60% to provide customers with innovative solutions and ser- 13% U.S. Institutions Employees/Directors/ vices.Textron is known around the world for its powerful Officers brands such as Bell Helicopter, Cessna Aircraft, Jacobsen, 12% Kautex, Lycoming, E-Z-GO and Greenlee, among others. Individual & Other Stock and Contact Information Stock Exchange Listings General Information Ticker Symbol – TXT This Fact Book is one of several sources of information available to Textron Inc. shareholders and the investment community. To receive Common Stock Annual Reports, 10-K, 10-Q reports and/or press releases, please New York, Chicago and Pacific Stock Exchanges call (888) TXT-LINE or visit our website at www.textron.com. Preferred Stock ($2.08 and $1.40) New York Stock Exchange Contacts Investors Capital Stock Douglas R. Wilburne (as of December 31, 2005) Vice President, Investor Relations Common stock: par value $0.125; 500,000,000 shares authorized; [email protected] 130,185,000 shares outstanding (401) 457-3606 (401) 457-2220 (fax) $2.08 Cumulative Convertible Preferred stock, Series A: 84,000 shares outstanding William E. Pitts Director, Investor Relations $1.40 Convertible Preferred Dividend stock, Series B: [email protected] 47,000 shares outstanding (401) 457-2502 Transfer Agent and Registrar (401) 457-2220 (fax) American Stock Transfer & Trust Company Banks and Rating Agencies 59 Maiden Lane Mary F. Lovejoy New York, NY 10038 Vice President and Treasurer (800) 829-8432 [email protected] Web: www.amstock.com (401) 457-6009 (401) 457-3533 (fax) Dividends Common and Preferred Stock Media Record dates: March 11, June 10, September 9, Susan M. Tardanico and December 9, 2005 Vice President, Communications Payable dates: April 1, July 1, October 1, 2005 and [email protected] January 1, 2006 (401) 457-2394 (401) 457-3598 (fax) Stock Splits Karen A. Gordon Record dates: December 17, 1965; August 11, 1967; Sr. Manager, Public Relations May 11, 1987 and May 9, 1997 [email protected] Distribution dates: January 1, 1966; September 1, 1967; (401) 457-2362 June 1, 1987 and May 30, 1997 (401) 457-3598 (fax) Textron is an Equal Opportunity Employer. 160177 3/6/06 7:27 PM Page 1 Textron > www.textron.com (Dollars in millions except per share data) 2005 2004 Change > NYSE: TXT Revenues $10,043 $ 8,318 21% International revenues % 36% 37% – > 2005 Fortune 500 ranking: 216 Segment profit 1 $ 1,146 $ 850 35% > Number of employees: 37,000 – 23 percent Less: Special charges 2 $ (118) $ (59) 100% are outside the U.S. Segment operating income $ 1,028 $ 791 30% Income from continuing operations $ 516 $ 375 38% > Number of countries with manufacturing Total debt – Textron Manufacturing 3 $ 1,934 $ 1,770 9% operations: 21 Shareholders’ equity $ 3,276 $ 3,652 (10)% Common Share Data Diluted EPS from continuing operations $ 3.78 $ 2.68 41% Dividends per share $ 1.40 $ 1.33 5% Key Executives Diluted average common shares outstanding (000’s) 1136,446 140,169 (3)% Key Performance Metrics ROIC 4 13.2% 10.6% – Free cash flow 5 $ 546 $ 729 (25)% Debt (net of cash) to total capital – Manufacturing 3 26% 25% – Short-Term Senior Commercial Credit Ratings of Textron Manufacturing 3 Long-Term Paper Lewis B. Campbell S&P A- A2 Moody’s A3 P2 Chairman, President and Fitch A- F2 Chief Executive Officer 1 Segment profit represents a measurement used by Textron to evaluate performance for decision-making Lewis Campbell was named CEO in purposes. Segment profit for manufacturing segments excludes interest expense, certain corporate expenses, July 1998 and appointed chairman special charges, and gains and losses from the disposition of significant business units. The measurement for in February 1999. Campbell served as the finance segment includes both interest income and interest expense, and excludes special charges. president and chief operating officer 2 Special charges in 2005 included a $91 million write-off of the remaining balance of Collins & Aikman (“C&A”) Products Co. preferred stock, $21 million of reserves to cover exposure on C&A leases and other C&A-related from January 1994 to July 1998, and charges, and $6 million of restructuring expense. Special charges in 2004 included $71 million of restructuring reassumed the position of president expense and a $12 million gain on the sale of C&A common stock. in September 2001. Campbell joined 3 Textron Manufacturing includes all continuing operations of Textron Inc. other than its finance subsidiaries. Textron in September 1992 as executive 4 Textron’s calculation of ROIC is provided on page 12. vice president and chief operating 5 A calculation of free cash flow is provided on page 11. officer after a 24-year career at General Motors. Discontinued Operations For the periods presented, the following businesses were reclassified to discontinued operations as a result of management’s strategic decisions to improve its business portfolio: 2005 – Textron Fastening Systems 2004 – InteSys (part of Industrial segment) 2003 – Small Business Direct portfolio (part of Finance segment) OmniQuip business (part of Industrial segment) Ted R. French Executive Vice President and Chief Financial Officer Ted French joined Textron as executive vice president and chief financial officer in December 2000. Prior to joining Textron, French served as president, financial services, and chief financial officer for CNH Global N.V., where he spent 11 years. Earlier, he held a variety of positions during his 12-year tenure with Rockwell International. Textron 2005 Fact Book 1 160177 3/6/06 7:28 PM Page 2 Bell The Bell segment comprises Bell Helicopter and 29% Bell’s share of Textron 2005 revenues Textron Systems. Bell Helicopter is a leader in vertical 24% Bell revenues are takeoff and landing aircraft for commercial and military comprised of Bell applications, and the pioneer of the revolutionary tilt- Helicopter (72%) and Textron Systems (28%). rotor aircraft. Textron Systems is a provider of advanced technology solutions for the aerospace and defense industries, including Lycoming aircraft engines. Strategic Steps Forward > Expand Bell’s productive capacity to serve growth in both military and > Pursue other U.S. Government and international military helicopter commercial markets. sales opportunities. > Operationalize Textron Six Sigma and improve key business > Strengthen the commercial product line by upgrading existing processes: Accelerate Lean implementation, integrated supply chain, products, developing derivatives and introducing new models. customer leadership and integrated product development. > Accelerate growth in Bell’s support and services portfolio. > Continue full rate production of the V-22 for the U.S. Marine Corps, > Apply Textron Systems’ excellence in Electromechanical Actuation, Air Force Special Operations Forces and other U.S. Department of demonstrated on Joint Direct Attack Munitions (JDAM), towards Defense and international customers. innovation in future manned and unmanned aircraft systems. > Successfully complete Operational Evaluation of the AH-1Z attack and > Leverage Textron Systems’ key contract wins in unattended ground UH-1Y utility helicopters. sensors and intelligent munitions systems with the U.S. Army, Air > Execute the System Development and Demonstration (SDD) phase of Force and Marines into a premier position in Precision Engagement. Armed Reconnaissance Helicopter (ARH), a potential $3B, 368 aircraft > Build on the success of Textron Systems’ Sensor Fuzed Weapon program by U.S. Army. (SFW), JDAM, and Armored Security Vehicle (ASV) in the Global War on Terrorism/Operation Iraqi Freedom to expand sales internationally. Major Products First Seating Capacity Useful Cruising Maximum Bell Helicopter Description Delivery (Including Pilots) Load (lbs) Speed (kts) Range (nm) Light 206B-3 Jet Ranger World’s most successful turbine helicopter 1977 5 1,492 115 374 206L-4 Long Ranger Extended cabin version of Jet Ranger 1992 7 2,141 112 324 407 Four-bladed, larger version of 206 1996 7 2,360 133 330 427 Rugged, reliable light twin-engine helicopter 2000 8 2,490 138 390 429 Light twin-engine helicopter, best-in-class cabin volume 2007 10 2,700 142 350 Intermediate 430 Flagship commercial four-bladed, twin-engine helicopter 1996 9–10 3,975 139 353 Medium 412 EP Twin-engine with highest dispatch reliability and the lowest hourly cost 1981 15 5,044 122 356 210 Civil certified version of the U.S. Army UH-1H 2005 11 4,783 120 253 Military UH-1N Huey U.S. Marine and Air Force light utility helicopter 1971 15 3,532 110 230 OH-58D Kiowa Warrior Armed reconnaissance helicopter for U.S. Army 1986 2 2,200 114 268 AH-1W Super Cobra U.S. Marine attack helicopter 1986 2 3,830 150 280 TH-67 Trainer Military training helicopter 1993 3 1,321 115 374 Huey II Upgrade of U.S. Army and worldwide UH-1H model Huey 1997 15 5,060 106 216 UH-1Y Comprehensive upgrade of UH-1N U.S. Marine Huey 2006 12 6,661 158 350 AH-1Z Comprehensive upgrade of AH-1W U.S. Marine Super Cobra 2006 2 5,764 155 380 Tiltrotor Bell Boeing V-22 Osprey Military tiltrotor aircraft, being produced in partnership with Boeing 1999 27 23,860 255 750 Bell Eagle Eye Vertical unmanned aerial vehicle 2008 NM 200 185 800 BA609 Commercial tiltrotor aircraft, being developed in partnership with Agusta — 11 5,500 275 750 Textron Systems Description Armored Security The ASV is a 4X4 wheeled armored vehicle that offers exceptional crew protection and selectable fire power for both peace- Vehicle (ASV) keeping and combat missions.