Message from Scott. Meet Our Leadership Team

Transcription

1 FACT BOOK 2015

2 Meet Our Leadership Team Message from Scott Eric Salander Chief Financial Officer Kriya Shortt Sales & Marketing Tom Hammoor President, Beechcraft Defense Company As a valued Textron Aviation customer, you are integral to our success, and we want to celebrate our accomplishments with you. I am pleased to share our company fact book, highlighting a momentous 2015 and looking forward at what lies ahead. We know that providing you with the best ownership experience begins with offering the right products and services positioned to meet your mission. Brad Thress Customer Service Michael Thacker Engineering Ron Draper Integrated Supply Chain From our versatile fleet of aircraft to a renowned global service network unmatched in the industry, our portfolio continues to expand with a broad range of new investments announced last year. In 2015, we saw total revenue grow to $4.8 billion. We continue to build on that growth, relying on your valued input to bring new products to market on time. Throughout our journey, we ll remain committed to upholding the integrity of our brands, ensuring we deliver on our promise to offer you the most capable and innovative solutions in general aviation. Christi Tannahill Interior Design & Engineering Bill Schultz Business Development China Jim Walters Human Resources & Communications Sincerely, Scott Ernest President and CEO Textron Aviation Doug May Vice President, Piston Aircraft Dave Rosenberg Vice President, Integration & Strategy Blake Meyen Vice President, General Counsel & Secretary

3 TEXTRON INC. Textron Inc. is a $13.4 billion multi-industry company with approximately 35,000 employees. The company leverages its global network of aircraft, defense and intelligence, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Beechcraft, Bell Helicopter, Cessna, E-Z-GO, Greenlee, Hawker, Jacobsen, Kautex, Lycoming, Textron Systems, Textron Financial Corporation and TRU Simulation + Training. FINANCIAL HIGHLIGHTS TEXTRON AVIATION Textron Aviation is home to the Beechcraft, Cessna and Hawker brands, and continues to lead general aviation through two principal lines of business: aircraft sales and aftermarket. Aircraft sales include business jet, turboprop and piston aircraft, as well as special mission and military aircraft. Aftermarket includes commercial parts sales and maintenance, inspection and repair services. MAJOR PRODUCTS Dollars in millions except per share data Revenues International revenues % Segment profit1 Income from continuing operations Manufacturing group debt2 Shareholders' equity $13,423 $13,878 38% 37% $1,255 $1,214 $698 $605 $2,697 $2,811 $4,964 $4,272 Change (3)% 3% 15% (4)% 16% Textron Revenue by Segment Textron Aviation 36% Bell 26% Industrial 26% Textron Systems 11% Finance 1% Cessna Citation Jets Citation Mustang Citation M2 Citation CJ3+ Citation CJ4 Citation XLS+ Citation Latitude Citation Sovereign + Citation X + First Delivery Std/Max Seating Capacity (including pilots) 6 8 8/10 9/11 11/14 9/11 11/14 11/14 Cruising Speed (kts) Maximum Range (IFR w/ NBAA reserves) 1,200 1,540 2,040 2,170 2,100 2,850 3,190 3,450 Engine Manufacturer Williams International Williams International Williams International Rolls-Royce Engine Model PW615F FJ44-1AP-21 FJ44-3A FJ44-4A PW545C PW306D1 PW306D AE3007C2 Avionics Garmin G3000 (Intrinzic ) Garmin G3000 (Intrinzic ) Collins Pro Line 21 Collins Pro Line 21 Garmin G5000 (Intrinzic ) Garmin G5000 (Intrinzic ) Garmin G5000 (Intrinzic ) Manufacturing group debt-to-capital (net of cash)2 Common Share Data Diluted EPS from continuing operations Dividends per share Diluted average shares outstanding (in thousands) Key Performance Metrics ROIC3 Net cash provided by operating activities of continuing operations-manufacturing group-gaap2 Manufacturing cash flow before pension contributions-non-gaap2,4 Manufacturing pension contributions Capital expenditures 26% 33% $2.50 $2.15 $0.08 $ , , % 12.2% $1,038 $1,097 $631 $753 $68 $76 $(420) $(429) 16% (1)% (5)% (16)% (11)% (2)% Textron Revenue by Type Commercial 68% U.S. Government 24% Other Military 7% Finance 1% New Product Development Citation Longitude Citation Hemisphere SETP Turboprops Cessna Caravan Cessna Grand Caravan EX Beechcraft King Air C90GTx Beechcraft King Air 250 Beechcraft King Air 350i Beechcraft King Air 350iER Pistons Cessna Skyhawk 172S Cessna Skylane 182T Cessna Turbo Stationair T206H Cessna TTx Beechcraft Bonanza G36 Beechcraft Baron G /14 9/14 10/14 8/9 9/11 9/11 9/ ,400 4,500 +1,500 1, ,260 1,740 1,796 2, , ,4803 Honeywell GE Textron Lycoming Textron Lycoming Textron Lycoming Continental Motors Continental Motors Continental Motors HTF-7700 PT6A-114A PT6A-140 PT6A-135A PT6A-52 PT6A-60A PT6A-60A IO-360-L2A TIO-540-AB1A5 TIO-540-AJ1A TSIO-550-C I0-550-B I0-550-C Garmin G5000 (Intrinzic ) Collins Pro Line Fusion Collins Pro Line Fusion Collins Pro Line Fusion Collins Pro Line Fusion Garmin G2000 Net Debt Finance group debt Manufacturing group debt $913 $2,697 $1,063 $2,811 $(150) $(114) Textron Revenue by Region Military5 Beechcraft T-6 Beechcraft AT-6 Scorpion ,382 1,725 2,400 Honeywell PT6A-68 PT6A-68D TFE 731 Esterline CMC 3000 Esterline CMC 3000 Total debt Less: Consolidated cash equivalents Net Debt $3,610 $1,005 $2,605 $3,874 $(822) $3,052 $(264) $(183) $(447) U.S. 62% Europe 13% Asia Pacific 10% Latin & South America 8% Canada 4% Middle East 2% Africa 1% 1. Estimate of first delivery 2. Estimated first flight minute fuel reserve 4. Current configuration with G1000 avionics 5. Contact Beechcraft Defense Company for aircraft and support package pricing AFTERMARKET SALES (Dollars in millions) 1,386 1, Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the Manufacturing segments excludes interest expense, certain corporate expenses and acquisition and restructuring costs related to the Beechcraft acquisition. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense. 2. Our Manufacturing group includes all continuing operations of Textron Inc. except for the Finance segment. 3. Calculation of return on invested capital ( ROIC ) is provided on page 12 of the Textron Fact Book. 4. Calculations of Manufacturing cash flow before pension contributions are provided on page 11 of the Textron Fact Book. (As of February 1, 2016) Senior Long-Term Textron Inc. Credit Ratings Short-Term Commercial Paper Outlook S&P Moody's BBB Baa3 A2 P3 Stable Positive

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5 One Citation Leads to Another CITATION LATITUDE MILESTONES 2015 OPPORTUNITY ABOUNDS IN THE CITATION FAMILY 2015 marked the start of a new era for the lineup of the world s best-selling business jets. The public received its first look at our newest products designed to combine range and ultimate comfort with the proven innovative capabilities only a Citation can offer. A NEW CITATION TO GO THE DISTANCE Throughout the last 20 years, the large cabin segment has seen little development until now. Enter the Citation Hemisphere. With a range of 4,500 nautical miles, this clean-sheet-design, long-range business jet expands the reach of the Citation line and marks our entry into the large jet segment. Backed by our industry-leadingcommitment to product innovation and design, the Rollout of the first production Latitude FAA certification awarded Customer deliveries begin 16 Latitudes delivered LATITUDE DELIVERS Upon entering the market in August, the 2,700-nautical mile range Citation Latitude was Citation Hemisphere will offer the latest technology and the most spacious cabin in its class, allowing you and your business to go the distance. recognized for offering an unmatched combination of performance and comfort with the lowest operating costs in its class. Within just four months, we placed 16 Latitudes into the hands of customers from across the globe a true testament to the market s need for the exceptional capabilities and low total ownership costs the Latitude brings to the midsize category. LONGITUDE PREPARES FOR TAKEOFF When the 3,400-nautical mile range Citation Longitude made its debut at the 2015 NBAA Convention and Exhibition in Las Vegas, customers and industry observers had the opportunity to view this super-midsize jet designed to revolutionize the segment. The Longitude pairs its class-leading cabin with an optimal combination of performance and efficiency, giving you more room, more range and higher cruise speeds all at the lowest total ownership costs in its class. In 2016, we ll celebrate the first flight of the Citation Longitude, continuing our momentum as we bring this one-of-a-kind aircraft to market.

6 Leading the Light Jet Segment From pilots stepping up to the controls of a Citation M2 for the first time, to companies taking their business to new heights in the top-performing CJ3+ and CJ4, customers continue to see why the Cessna Citation family of light jets offers the best tools for the mission. In 2015, we delivered more light jets than any other manufacturer. Among the 166 jets delivered to our customers last year was the 100th Citation M2. Since entering the market, the single-pilot jet quickly became a favorite of pilots seeking more speed and comfort. The milestone delivery arrived less than two years after the jet s entry into service, demonstrating our ability to outpace the competition. To date, we have delivered more than 1,800 CJs to customers around the world. In 2016, we celebrate yet another milestone for the renowned jet lineup the 25th anniversary of the first flight. For most people, going from a single-engine plane to any sort of multi-engine jet is a big move, but I took that extra step and went all the way to the Citation M2. I just fell in love with the jet in terms of its capabilities and the avionics. Stephen Elop, M2 pilot Customers from Zurich to Jundiai celebrated the new reach of the Citation CJ3+, which last year received type certification from Europe s Aviation Safety Agency (EASA) and Brazil s National Civil Aviation Agency (ANAC), paving the way for international deliveries of the best-in-class jet. The airplane is a wonderful business tool. It allows me to mobilize and move my company s personnel and myself quickly and efficiently around the country to our various projects. Stuart Fred, real estate developer and Citation CJ4 owner/pilot In 2015, Textron Aviation delivered its th 200CITATION CJ4 JET. The jet was also the first aircraft ever registered in the British Channel Island of Jersey. THE AUTHORITY IN PRE-OWNED AIRCRAFT Each year, we deliver more pre-owned Citation aircraft than anyone in the world. No individual owner, broker or aircraft dealer can match our level of assurance and support before, during or after your purchase.

7 Continued Investment Drives Turboprop Innovation Investment in our turboprop fleet continued in 2015 with cutting-edge avionics upgrades, and new interior offerings appearing throughout our product lineup. We not only enhanced our versatile lineup but also officially announced a new addition to our turboprop family. We re leveraging the latest technology available to provide the solutionsbased products you need to keep flying. KING AIR WELCOMES STATE-OF-THE-ART TECHNOLOGY Last year saw the arrival of NextGen readiness for the King Air line, with the intuitive Pro Line Fusion avionics platform becoming standard on all new production King Air models. In 2015, the Federal Aviation Administration awarded the Fusion-equipped King Air 350i and 250 models type certification, paving the way for deliveries and retrofit upgrades. By March 2016, EASA had officially certified the platform for European operations. Certification for the Fusion-equipped King Air C90GTx is expected this year. With its three 14-inch flight displays, touch-screen flight planning and high-resolution Synthetic Vision System, the Fusion-equipped King Air pairs the market s most technologically advanced cockpit platform with the world s most popular business turboprop. Fast access to the information you need to remain productive is also possible with the upgraded King Air, which in 2015 integrated standard Wi-Fi into new 350i and 250 models. Communicating with the world below is now as easy as powering on your laptop or mobile device, allowing you to stay connected from takeoff to landing. THE LEADER IN BUSINESS TURBOPROPS This year, customers will get their first look at our clean-sheet design, single-engine turboprop. A cabin mockup of the aircraft will be on display at this year s EAA AirVenture, allowing aviation enthusiasts and customers to learn more about our newest product. From a state-of-the-art powerplant designed by GE Aviation, to its more than 1,500-nautical mile range, it is an aircraft designed with the customers' input in mind. Our newest addition is poised to fully complement our current offerings, bringing incomparable capability and speed to the segment. MILESTONES AT A GLANCE In 2015, Alaska-based regional carrier Bering Air took delivery of the 2,500th Caravan, a Cessna Grand Caravan EX, to aid in its operations throughout arctic Alaska. The 1,000th King Air 350 was delivered to membershipbased private aviation company Wheels Up. NEW SINGLE-ENGINE TURBOPROP FEATURES Range of MORE than Powered by GE s new 1,500 1,240 Widest and most comfortable cabin in its class. Full-fuel payload of 1,100lbs. miles and +280 knot maximum cruise speed. shaft horse power (SHP)- rated turboprop engine

8 The Standard in Piston Aircraft Since introducing the legendary Skyhawk more than 60 years ago, we have continued to provide new pilots with the most capable tools for the job. Today, the Cessna TT x takes piston flying to the next level, bringing together proven reliability with dynamic features. It s the advanced piston performer that ensures your next flight remains as exciting as the first. After its entry into service in 2013, pilots seeking more from their single-engine aircraft quickly embraced the Cessna TT x and its unique capabilities. With its intuitive cockpit and unprecedented speed, it has proven to be the aircraft prepared to thrive no matter where you re headed your next business meeting or your next adventure. And for the world s fastest fixed-gear piston aircraft, taking to the skies down under is now possible. In 2015, the Australian Civil Aviation Safety Authority awarded the Cessna TT x type certification, paving the way for customers in the region to experience the aircraft s superior performance. There is so much the TTx can do. It's so much more technologically advanced." Billy Johnson, Cessna TTx owner SKYHAWK CONTINUES TO FOSTER THE JOY OF FLYING Recognizing the importance of supporting the next generation of aviators, in 2015 we launched the Top Hawk university program, collaborating with universities around the U.S. to connect budding pilots with higher education. In its inaugural year, the program allowed four leading university aviation programs to receive a branded Skyhawk to promote flight training and support recruiting efforts and promotional events on campus. Future pilots outside the U.S. also rely on the Skyhawk for their training needs. In China, the opening of the country s low-altitude airspace has given way to an increase in pilot training efforts, and in 2015 operators and flight schools began incorporating the aircraft into their operations. In Indonesia, the country s largest flight training program uses the Skyhawk to train its student pilots. Earlier this year, the Sekolah Tinggi Penerbangan Indonesia (STPI) flight school secured an order of the piston aircraft for the 300 students earning their wings. Scorpion Jet Reinforces Innovative Defense Platforms Textron AirLand s Scorpion multi-mission tactical jet is truly unique in its segment. In 2015, the Scorpion displayed its capabilities at various defense exhibitions, giving customers an early look at the aircraft. During a seven-week demonstration tour through Europe, the aircraft SCORPION ACHIEVED 100 % AIRCRAFT AVAILABILITY and mission accomplishment during a 2015 event with pilots from the U.S. Air Force Test Pilot School. logged 12,384 nautical miles and more than 80 flight hours. Construction of the first conforming aircraft also began in Using commercially designed twin engines, the Scorpion combines More Skyhawks have been delivered to customers around the world than any other type of aircraft, with more than 45,000 high-dash speeds, extended endurance and loiter time at cruise speeds the versatility a defense aircraft needs to make each mission a success. Later this year, the Scorpion will continue touring the world, making its way to the United Kingdom during the summer to display its powerful features at the popular Royal International Air Tattoo event and the Farnborough International Airshow in July. Since its entry into service in 2000, the Beechcraft T-6 military trainer aircraft has logged more than 2.6 MILLION HOURS IN THE SKIES, and in 2015 the 900th military trainer was delivered. in service since 1955.

9 A Service Network to Keep You Flying CUSTOMER SERVICE UNRIVALED IN THE INDUSTRY With the largest business and general aviation fleet in the world, we understand the importance of having a support network focused on what matters most keeping your aircraft in the air. 21 factory-owned More than 60 mobile Three rapid response A lineup of ProAdvantage service centers service vehicles. jets ready to dispatch programs to simplify EXPANDING OUR CAPABILITIES What began as a plan to ensure comprehensive access to quality service worldwide. parts and technicians in the U.S. and Europe. service budgeting for your aircraft nose to tail. across the Textron Aviation network has resulted in 21 factory-owned service centers capable of providing service for our Citation, Hawker and King Air aircraft. As a result, you can now count on even more OEM options to get you back in the air. Investments in our service network also stretched across the Atlantic in 2015 with the opening of a new service center at Paris-Le Bourget airport and the addition of a Citation CJ3 dedicated to rapid response throughout Europe. MAKING AIRCRAFT OWNERSHIP EASIER THAN EVER Today, new service and aircraft management programs make ownership a seamless experience, leaving you more time to enjoy your aircraft. Quality extends beyond the factory, and through our service network we strive to offer the best solutions. Last year, we began extending the ProAdvantage family of maintenance programs to King Air and Hawker aircraft, bringing you new price-competitive options to streamline service costs. Today, owners can cover most maintenance requirements from routine inspections to engine overhauls and receive one predictable monthly invoice. Operators can also count on our ProOwnership support program. Launched in 2015, the program provides new owners with all-inone aircraft management support. And with 1CALL, launched in early 2016, requesting immediate maintenance is now easier than ever. Calling our dedicated line focused on rapid results, you ll have direct access to: ProOwnership makes aircraft management a seamless experience for new owners. Program members can count on customized OEM assistance. MSU vehicles and rapid response jets ready to dispatch to your aircraft. Prioritized technical support from our 1CALL team of experts, 24/7. Expedited parts delivery. Customers can access the dedicated 1CALL team by dialing Maintenance scheduling Finding a home airport Parts purchasing Technical maintenance records and logbook management Trip planning

10 Working Together to Bring You More Citation Latitude Your feedback is essential in allowing us to bring smart innovation to market at a pace unrivaled in the industry. Today, a team of more than 2,000 Textron Aviation engineers is focused on designing and developing our newest products and refining our existing lineup to provide you with the tools you need to succeed. We re expanding our reach and offering more direct access to the support you need, when and where you need it. This includes a growing fleet of readily available MSU vehicles; a larger and more efficient parts distribution network; and a new, innovative technical publications website that grants you access to all your technical manuals and flight documents. Our pursuit to raise the bar on your experience as our customer remains stronger than ever. Citation Longitude We invite you to share in our excitement as we work to bring our newest offerings to life this year. Whether it s by visiting our Wichita, Kansas headquarters, or reaching out to your service representative or sales director, we encourage you to learn more about what s to come for Textron Aviation and for you in 2016 and beyond. Citation Hemisphere

11 txtav.com U.S TXTAV INTERNATIONAL Textron Aviation Inc. Cessna, Cessna s logo, Citation, Citation Mustang, Citation M2, Citation CJ3+, Citation CJ4+, Citation XLS+, Latitude, Citation Sovereign, Citation X, Citation Longitude, Hemisphere, Caravan, Grand Caravan, Skyhawk, Skylane, Stationair, and TTx are registered trademarks of Textron Innovations Inc., used by permission. Beechcraft, its logo, King Air, Hawker and its logo, Baron and Bonanza are registered trademarks of Beechcraft Corporation. Garmin, G1000, SVT and GFC are trademarks of Garmin International, Inc. or an associated company. Rockwell Collins, Pro Line 21 and Pro Line Fusion are trademarks of Rockwell Collins, Inc.