2016 Analyst Meeting Scott Ernest TEXTRON AVIATION Forward-looking - - PowerPoint PPT Presentation

2016 Analyst Meeting Scott Ernest

Certain statements in today’s discussion will be forward-looking statements, including those that discuss strategies, goals, outlook or

• ther non-historical matters; or project revenues, income, returns or
• ther 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

• ur full disclosure located at the end of this presentation and included

in our SEC filings.

Forward-looking statement

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• Overview
• Accomplishments
• Market
• Product Update
• Defense
• Operations

Agenda

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Broadest product lineup in the industry

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JETS TURBOPROPS PISTONS DEFENSE

King Air 350i/ER King Air 250 King Air C90GTx Baron G58 Bonanza G36 AT-6 T-6C Citation X+ Citation CJ4 Citation XLS+ Citation M2 Citation CJ3+ Caravan Grand Caravan EX TTx Turbo Stationair HD Skyhawk Citation Sovereign+ Citation Latitude Citation Mustang Skylane Scorpion Citation Longitude Citation Hemisphere

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Denali

Fastest product development in the industry

TEXTRON AVIATION Textron Aviation Other OEMs Average Development Time

Faster product development

• Quicker response to

market conditions

• Products to customers on

time, as expected

• Technology customers

value

• Maximize return

Source: Estimated time from program start to EIS.

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Best in class products in half the time

Largest installed base in the industry

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Delivered 250,000+ aircraft in 170+ countries

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Most comprehensive service network in the industry

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3,300 19 382 60

Service network employees Company-owned service centers Authorized service facilities

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Mobile Service Units

2016 Accomplishments

• Citation Longitude first flight
• Citation Latitude strong deliveries
• Cessna Denali introduced
• Delivered 5000th Citation Light Jet
• Delivered 7000th Citation
• Scorpion-CRADA / Weapons test
• Vertical integration

2016 accomplishments

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Market

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2011 2013 2015 2017 2019 2021 2023 2025 Value (in 2016 USD) Billions

Turboprops

Multi-Engine Single Engine Utility

Actual Forecast

Investment focus – expanding our reach

MARKET

$0 $5 $10 $15 $20 $25 $30 2011 2013 2015 2017 2019 2021 2023 2025 Value (in 2016 USD) Billions

Jets

Ultra Long Range Large Midsize Light

Actual Forecast Source: Blend of internal, JetNetIQ, Honeywell forecast

Area of focus Area of focus

Investing in Longitude & Hemisphere Investing in Denali

for midsize and large jets for single engine turboprops

$9.5B+

2021 Segment Size

$700M+

2021 Segment Size

Investing in new segments

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Product Update

Expanding our reach

PRODUCT UPDATE

2,700 nm

Citation Latitude EIS 2015

3,500 nm

Citation Longitude First Flight Complete Estimated EIS 2017

4,500 nm

Citation Hemisphere FIRST FLIGHT 2019

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Citation Latitude success

PRODUCT UPDATE

40+ aircraft delivered Over 9,000 fleet hours

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NetJets

PRODUCT UPDATE

• Currently operates over 225 Citations
• 7000th Citation delivered to NetJets
• Potential for 200 aircraft
• 2016 NetJets OEM supplier of the year

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7000th Citation delivery ceremony

Citation Longitude first flight

PRODUCT UPDATE

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Rapid product development

CITATION LONGITUDE Summer 2014 Summer 2016 Optimizing facility footprint

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Best in class

CITATION LONGITUDE

Citation Longitude Gulfstream 280 Challenger 350 Legacy 500

Range ≥ 3500 nm Maximum Operating Speed ≥ M0.84 Full Fuel Payload ≥ 1600 lbs Total DOC < $2000/hr Quietest cabin in class EVS & HUD

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Citation Hemisphere

Product Update

4,500 nm

Max Range

102 in.

Diameter

Best in class

Ownership Cost

First flight 2019

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Best in class

CITATION HEMISPHERE

Citation Hemisphere Legacy 650 Challenger 650 Gulfstream 450 Falcon 2000LXS

Range ≥ 4500 nm Maximum Operating Speed ≥ M0.90 3-Zone Cabin Fuselage Diameter ≥ 102 inches

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Outperforming the competition

CESSNA DENALI

Full Fuel Payload

1,100 lbs

High Speed Cruise

285 kts

Range

1,600 nm

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Best in class

CESSNA DENALI

Cessna Denali Pilatus PC-12 Daher TBM 930 Piper M600

Range ≥ 1600 nm High Speed Cruise ≥ 285 kts Full Fuel Payload ≥ 1100 lb Total DOC < $615/hr Cabin Width > 60 inches

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NOTE: Range with 4 pax at High Speed Cruise

Wheels Up

PRODUCT UPDATE

• 54 King Air 350i’s in fleet
• 3550+ memberships sold since

inception (Fall 2013)

• Over 50% increase y/y in new

memberships sold through September

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Defense and Special Missions

Scorpion program update

DEFENSE & SPECIAL MISSIONS

• Scorpion (D1) 750+ hours to date
• Successful live fire test
• Pursuing numerous domestic and

international sales opportunities

• CRADA agreement signed

– “Non-DOD Military Aircraft Airworthiness Accreditation” program – Process underway

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Scorpion-versatile, capable & cost effective

Special Missions

DEFENSE & SPECIAL MISSIONS

• Single-engine & multi-engine turboprop aircraft are favored platforms

– Cost-effective solutions

• ISR missions are the largest opportunity for Textron Aviation special missions

– 40% of SM aircraft are ISR configurations – Border and maritime patrol – Counterterrorism – Economic exclusionary zones

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Operations

Vertical integration in manufacturing

Operations

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Assembly Fabrication Composites Interiors

Summary

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• New products drive growth
• Investing in our products, service and people
• Best-in-class product development capability
• World-class manufacturing

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Questions

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