2016 Analyst Meeting Scott Ernest
TEXTRON AVIATION Forward-looking statement 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. 2
TEXTRON AVIATION Agenda • Overview • Accomplishments • Market • Product Update • Defense • Operations 3
TEXTRON AVIATION Broadest product lineup in the industry JETS TURBOPROPS PISTONS DEFENSE AT-6 Citation Hemisphere Citation XLS+ King Air 350i/ER Baron G58 T-6C King Air 250 Citation Longitude Citation CJ4 Bonanza G36 Scorpion King Air C90GTx TTx Citation X+ Citation CJ3+ Turbo Stationair HD Denali Citation Sovereign+ Citation M2 Skylane Grand Caravan EX Citation Latitude Citation Mustang Skyhawk Caravan 4
TEXTRON AVIATION Fastest product development in the industry Average Development Time Faster product development • Quicker response to market conditions • Products to customers on time, as expected • Technology customers value • Maximize return Textron Aviation Other OEMs Best in class products in half the time Source: Estimated time from program start to EIS. 5
TEXTRON AVIATION Largest installed base in the industry Delivered 250,000+ aircraft in 170+ countries 6
TEXTRON AVIATION Most comprehensive service network in the industry 3,300 Service network employees 19 Company-owned service centers 382 Authorized service facilities 60 Mobile Service Units 7
2016 Accomplishments
TEXTRON AVIATION 2016 accomplishments • Citation Longitude first flight • Citation Latitude strong deliveries • Cessna Denali introduced Delivered 5000 th Citation Light Jet • Delivered 7000 th Citation • • Scorpion-CRADA / Weapons test • Vertical integration 9
Market
MARKET Investment focus – expanding our reach Jets Investing in Longitude & Hemisphere Actual Forecast $30 Billions $25 Area of focus Value (in 2016 USD) $20 Ultra Long Range $15 Large Midsize $10 Light 2021 Segment Size $5 $9.5B+ $0 2011 2013 2015 2017 2019 2021 2023 2025 for midsize and large jets Turboprops Actual Forecast Investing in Denali $2.5 Billions $2.0 Area of focus Value (in 2016 USD) $1.5 Multi-Engine Single Engine $1.0 Utility 2021 Segment Size $0.5 $700M+ $0.0 for single engine turboprops 2011 2013 2015 2017 2019 2021 2023 2025 Investing in new segments 11 Source: Blend of internal, JetNetIQ, Honeywell forecast
Product Update
PRODUCT UPDATE Expanding our reach Citation Latitude 2,700 nm EIS 2015 Citation Longitude 3,500 nm First Flight Complete Estimated EIS 2017 Citation Hemisphere 4,500 nm FIRST FLIGHT 2019 13
PRODUCT UPDATE Citation Latitude success 40+ aircraft delivered Over 9,000 fleet hours 14
PRODUCT UPDATE NetJets 7000 th Citation delivery ceremony • • Currently operates over 225 Citations Potential for 200 aircraft 7000 th Citation delivered to NetJets • • 2016 NetJets OEM supplier of the year 15
PRODUCT UPDATE Citation Longitude first flight 16
CITATION LONGITUDE Rapid product development Summer 2014 Summer 2016 Optimizing facility footprint 17
CITATION LONGITUDE Best in class Citation Gulfstream Challenger Legacy 500 Longitude 280 350 Range ≥ 3500 nm Maximum Operating Speed ≥ M0.84 Full Fuel Payload ≥ 1600 lbs Total DOC < $2000/hr Quietest cabin in class EVS & HUD 18
Product Update Citation Hemisphere Max Range Diameter Ownership Cost 4,500 nm 102 in. Best in class First flight 2019 19
CITATION HEMISPHERE Best in class Citation Challenger Gulfstream Falcon Legacy 650 Hemisphere 650 450 2000LXS Range ≥ 4500 nm Maximum Operating Speed ≥ M0.90 3-Zone Cabin Fuselage Diameter ≥ 102 inches 20
CESSNA DENALI Outperforming the competition Full Fuel Payload Range High Speed Cruise 1,100 lbs 1,600 nm 285 kts 21
CESSNA DENALI Best in class Cessna Denali Pilatus Daher Piper PC-12 TBM 930 M600 Range ≥ 1600 nm High Speed Cruise ≥ 285 kts Full Fuel Payload ≥ 1100 lb Total DOC < $615/hr Cabin Width > 60 inches 22 NOTE: Range with 4 pax at High Speed Cruise
PRODUCT UPDATE Wheels Up • 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 23
Defense and Special Missions
DEFENSE & SPECIAL MISSIONS Scorpion program update • 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 Scorpion-versatile, capable & cost effective 25
DEFENSE & SPECIAL MISSIONS 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 26
Operations
Operations Vertical integration in manufacturing Assembly Composites Interiors Fabrication 28
TEXTRON AVIATION Summary • New products drive growth • Investing in our products, service and people • Best-in-class product development capability • World-class manufacturing 29
TEXTRON AVIATION Questions 30
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