Textron Inc. at Goldman Sachs Industrials Conference

Goldman Sachs

Industrials Conference

Douglas Wilburne

VP, Investor Relations

November 14, 2013

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Forward-Looking Information

Certain statements in today’s discussion will be forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements.

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the risks and uncertainties set forth under our full disclosure located at the end of this presentation and included in our SEC filings.

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2012 Revenue: $12.2B; Up 9%

Cessna Aircraft

Cessna

25%

Bell Helicopter

Bell

35%

Textron Leading Branded Businesses

E-Z-GO

Greenlee

Jacobsen

Kautex

Industrial

24%

Textron Financial

Finance

2%

Weapons & Sensors

Unmanned Aircraft Systems

Land & Marine

Defense & Aviation Mission Support

Textron Systems

14%

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Scorpion ISR/Strike

• New Hybrid ISR/Strike aircraft announced at AFA Conference in September

• Designed for air defense, irregular warfare, border patrol, maritime surveillance, emergency relief, and counter-narcotics mission sets

• Built by leveraging commercial best practice

• Target operating cost under $3,000/hr

• First Flight expected by end of year

Redefines Affordability for Domestic and International Military Customers

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Aircraft Sales 25% Aftermarket 75%

Sustaining a leadership position through customer satisfaction, new products and services

Cessna $3.1 Billion (2012 Revenue)

6

25%

Expanding our footprint and growing organically

Customer Service and Support

$3

54

$3

81

$4

43

$5

02

$5

62

$6

06

$6

66

$7

21

$5

87

$6

67

$7

27

$7

93

01 02 03 04 05 06 07 08 09 10 11 12

Aftermarket Sales • Service center global expansion

• 15 locations throughout 8 countries

• Most recent additions in Singapore, UK, Zurich, and Dusseldorf

• International parts distribution

• 22 mobile service units worldwide

• Aircraft modernization

New Citation Sovereign Citation M2 New Citation X

Turbo Skylane JT-A Cessna TTx

Grand Caravan EX

Six New Products Planned to Ship in ’13 and ‘14

Investing for Growth

Citation M2 • State of the art cockpit

• Garmin G3000

• Large cabin

• Six passengers

• Aft lav

• Clarity cabin connectivity

• Speed – 400 knots

• 60 knots faster than Mustang

• 10 knots faster than Phenom 100

• Excellent climb performance

• 37% faster than Phenom 100

• Range - 1,300nm

• Outstanding value - $4.4M

• Invigorates space between Mustang and CJ2

Expected EIS 2013

• State of the art cockpit

• Garmin G5000

• Largest Citation cabin

• 72” height

• Flat floor


• Speed – 440 knots

• Outstanding short field performance – 4,000 ft

• Range – 2,500 nautical miles

• Industry’s best cabin value - $15.4M ⃰

• Redefines space between XLS+ and Sovereign

• NetJets purchase agreement – up to 150 units

Citation Latitude

Expected EIS 2015

* Subject to price escalation at first delivery date

• State of the art cockpit

• Garmin G5000

• Largest Citation cabin

• 72” height

• Flat floor


• Powered by two Snecma Silvercrest engines

• Max speed – Mach 0.86

• Range – 4,000 nautical miles

• Intercontinental

• Industry’s best value for range - $25.999M ⃰

Citation Longitude

Expected EIS 2017

* Subject to price escalation at first delivery date

Global Jet Deliveries

Source: GAMA

Cessna 53%

HBC 9%

BOM 11%

EMB 23%

GS 3%

FY 2012: 340 units

FY 2010: 429 units FY 2011: 382 units

Cessna 41%

HBC 17%

BOM 7%

EMB 29%

GS 6%

Cessna 48%

HBC 14%

BOM 11%

EMB 22%

GS 5%

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Marketing Vision

• Strategic marketing approach

• Better customer understanding

• “Co-creation” with our customers

• Identify and locate new customers

• Innovative engagement

• Beyond aviation

• Real-time social interaction

• Two-way dialogue

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Industrial $2.9 Billion (2012 Revenue)

Greenlee $398 million

E-Z-GO & Jacobsen $660 million

Kautex $1,842 million

Focused on new products, cost productivity and geographic expansion

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Industrial New Products

ECLIPSE2 walking green mower

New products drive growth and profitability

Component Integration on Next Generation Fuel System

SPEED PUNCH™ System with patent-pending SPEED LOCK

Bad Boy Buggies Recoil iS

TrueSet™ Cutting Unit

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Tactical Wheeled Vehicles Training &

Test Equipment

Unmanned Systems

Marine

Air-to-Ground

Weapons

Aircraft Engines


Marine & Land

Systems

40% 26% 16%

Textron Systems $1.7Billion (2012 Revenue)

Expand global presence and customer base worldwide

Weapons & Sensors

Battlespace Awareness

& Intelligence Software

Command & Control

Technologies

18% Mission Support

Intelligent Networked

Ground Systems

Unattended Ground Sensors

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Growth in non-U.S. markets

0%

10%

20%

30%

$0

$100

$200

$300

$400

$500

$600

2008 2009 2010 2011 2012

International Revenue % International

International Revenue $ Millions

International % of Revenue

Reflecting SFW, land vehicles and UAS.

Textron Systems - International Revenues

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– Shadow® M2

– Shadow

– Aerosonde™


Command and Control Stations

– One System® Ground Control Station (GCS)

– One System Remote Video Terminal

– Universal GCS

– iCommand™

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Marine & Land

Land • COMMANDO™ Family of

Vehicles • Survivable Combat Tactical

Vehicle™

Maritime • Ship-to-Shore Connector • Landing Craft, Air Cushion • Motor Life Boat • Common Unmanned Surface

Vessel (CUSV)

Canadian TAP-V Navy Ship-to-Shore

Connector

CUSV

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Weapons & Sensors

Area Attack

• Sensor Fuzed Weapon • CLean Area Weapon

Area Denial • Spider • Scorpion

Sensors • Unattended Ground Sensors • MicroObserver®

Battlehawk™

Protection Systems • Orion Thermal Protection

Shield • Reentry Vehicles

Advanced Weapons • BattleHawk™ Loitering

Munition • Guided CLean Area

Weapons

Sensor Fuzed Weapon (SFW)

206L4

407

412

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Military Commercial

V-22 – Osprey

OH-58D – Kiowa

Installed Base: 2,500

~$2.6 Billion; 60% ~$1.7 Billion; 40%

Installed Base: 10,600

Executing on Balanced Growth

Bell Helicopter $4.3 Billion (2012 Revenues)

429

Huey II

AH-1Z - Viper

UH-1Y - Venom

Customer Service and Support

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Spares

Accessories

Completions

Repair & Overhaul

Training Academy

Field Services

Depot Maintenance

Electronic Logbook

Bell is the Industry standard for support

#1 in Customer Support

• 19 years in a row – ProPilot

• 8 years in a row – AIN

Largest support network

• 116 approved customer service facilities in over 35 countries

• Well positioned to support our customers wherever they operate

Supporting installed base of 13,100

Strategically co-locating with Cessna

#1 Ranked Global Customer Support

• New “Super Medium” category under development

• Best‐in‐class payload range capability

• Best‐in‐class cabin and cargo volumes coupled with flexible cabin layout options

• Best‐in‐class crew visibility

• First commercial helicopter with proven fly-by-wire flight controls

• First helicopter with Garmin G5000H avionics

• Avionics, fly-by-wire and crew visibility comprise new “ARC Horizon” Cockpit System resulting in unparalleled overall situational awareness increasing safety margins

Bell 525 “Relentless”

Speed 155 Knots Range 500+ NM MGW 19,300+ Lbs Useful Load 7,400+ Lbs Passengers up to 20

525 with ARC Horizon Cockpit System

Bell Short Light Single (SLS) • Cost-competitive, entry

level aircraft

• Best‐in‐class awareness with fully integrated glass cockpit and superb exterior visibility

• Flat cabin floor with 5 forward facing seats

• Safety enhancing design features to reduce pilot workload, improve situational awareness, and deliver superior auto rotation capabilities

• First flight target: 2014

Performance Targets Speed 125 knots Range 360 to 420 nm Useful Load 1,500 lbs Ceiling 11,000 ft

> 4,400 Bell JetRangers in service today

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H-1 Program Highlights

• 117 aircraft delivered

• 83 UH-1Y

• 34 AH-1Z

• Pursuing FMS opportunities

• 84% logistics commonality

• Exceptional performance in-theater

• AH-1Z – widest array of ordnance for any attack helicopter

Versatile Capable, Rotorcraft

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18 25 24 25 27 29

0

20

40

2009 2010 2011 2012 2013 2014 2015

H-1 Contract Deliveries

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V-22 Program Highlights • Strong performance in-

theater – Iraq and Afghanistan

– Air Force Special Operations

• Over 185,000 total flight hours

• Pursuing FMS opportunities

– Israel plans announced

• MYP II approved

– 99 total aircraft: option for 23 additional units

» 1 exercised to date

• Expanding capabilities

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34 39 40 36

22

0

20

40

2009 2010 2011 2012 2013 2014 2015

V-22 Contract Deliveries

Strong Program Execution and Operational Performance

• Third Generation Tiltrotor

• Army’s Joint Multi Role/Future Vertical Lift (FVL) Technology Demonstrator (JMR/TD) program

– Awarded Technology Investment Agreement in October ’13

• First Flight Expected 2017

• Leading Aerospace Companies Comprise Team

– Lockheed Martin

– General Electric

– Moog

– GKN

– Spirit

– AGC Composites

Bell V-280 Valor

• Speed - 280 KTAS • Combat Range - 500-800nm • Non-rotating, fixed engines • Passengers – 4 crew + 11 troops

Unmatched Speed, Range, Payload, and Value

Mock-up on display at AUSA Conference

Finance Segment

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Supporting purchases of Textron-manufactured products

(2% of 2012 Textron Revenues)

•Finance receivables @ 9/30/13:

Total: $1.6B Captive: $1.4B Non-captive: $0.2B

•Capital structure:

3.6 debt-to-equity leverage

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Summary

• Strong brands, solid top-line growth outlook

• Investing in new product development and innovation to support growth

• Advance execution and operational performance

• Focus on cash flow generation and improving profitability

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Forward-Looking Information Certain statements in this presentation and other oral and written statements made by us from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “guidance,” “project,” “target,” “potential,” “will,” “should,” “could,” “likely” or “may” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described under “Risk Factors” in our Annual Report on Form 10-K, among the factors that could cause actual results to differ materially from past and projected future results are the following: interruptions in the U.S. Government’s ability to fund its activities and/or pay its obligations; changing priorities or reductions in the U.S. Government defense budget, including those related to military operations in foreign countries; our ability to perform as anticipated and to control costs under contracts with the U.S. Government; the U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards; changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products; volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our products; volatility in interest rates or foreign exchange rates; risks related to our international business, including establishing and maintaining facilities in locations around the world and relying on joint venture partners, subcontractors, suppliers, representatives, consultants and other business partners in connection with international business, including in emerging market countries; our Finance segment’s ability to maintain portfolio credit quality or to realize full value of receivables and of assets acquired upon foreclosure of receivables; performance issues with key suppliers or subcontractors; legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products; our ability to control costs and successfully implement various cost-reduction activities; the efficacy of research and development investments to develop new products or unanticipated expenses in connection with the launching of significant new products or programs; the timing of our new product launches or certifications of our new aircraft products; our ability to keep pace with our competitors in the introduction of new products and upgrades with features and technologies desired by our customers; increases in pension expenses or employee and retiree medical benefits; difficult conditions in the financial markets which may adversely impact our customers’ ability to fund or finance purchases of our products; and continued demand softness or volatility in the markets in which we do business.