Textron Analyst Meeting Paris Air Show June 20, 2007

Building and Growing Textron Analyst Meeting Paris Air Show June 20, 2007 1

Building and Growing Doug Wilburne Vice President, Investor Relations Paris Air Show June 20, 2007 2

Today s Agenda Welcome Doug Wilburne Cessna Jack Pelton Textron Systems Frank Tempesta Bell Helicopter Dick Millman Textron Overview Ted French 3

Forward-Looking Information Certain statements in today s discussion will be forwardlooking 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. 4

Jack J. Pelton Chairman, President & Chief Executive Officer Cessna Aircraft Company 20 June 2007 5

Mission To be the premier supplier of aircraft and related services for business, personal, utility and flight training To be a model organization within the communities we serve in terms of quality, profitability, corporate responsibility, people and product development Cessna means value, dependability and an exceptional customer experience - across design, sales, production, delivery and service -around the world Taking Care of Customers Is Taking Care of Business 6

Cessna Aircraft 2007E Revenues: $4.9 Billion, Up ~18% YOY 67% Citations 5% Single Engine 3% Caravan 4% Used Aircraft 15% Parts, Service & Other 6% CitationShares 7

Business Strategies Develop and deliver customer-focused products Provide superior aftermarket services Strengthen fractional jet ownership business Drive operational readiness, reduce costs and improve productivity Create a Lean Enterprise Foster an environment that attracts, develops and retains high performing talent A Global Leader in General Aviation 8

Cessna Aircraft Product Range Step-up Strategy / Strong Brand Loyalty 65-75% of Citation Sales Are Repeat Purchases $1.8M $2.5M $4.6M $6.1M $7.1M CJ3 $8.0M CJ4 $8.1M Encore+ $11.6M XLS+ $16.2M Sovereign $20.1M Citation X $220K $326K $448K CJ1+ CJ2+ Mustang Caravan 206 182 172 Cessna Pilot Centers Foundation for Bringing Customers into the Cessna Family 9

Cessna Industry Leadership Bombardier 17% Hawker Beechcraft 23% Dassault 2% Cessna 52% Customer-focused new product development Continuous improvement in quality, reliability, service and support Proven value propositions Brand strength supported by the largest, loyal customer base in general aviation Gulfstream 6% Source: GAMA and Cessna estimates Percentage Jets Shipped Light and Midsize, 2001 2006 10

30 Business Jet Competitive Landscape 25 20 15 10 5 0 11 Eclipse 500 Phenom 100 * CJ1+ CJ2+ Premier 1A CJ3 Phenom 300 * H-400XP CJ4* Encore+ Lear 40XR Lear 45XR Hawker 750* Lear 60XR Hawker 900XP* Sovereign Hawker 4000 Challenger 300 Citation X G200 Price $ Millions Legacy 600 Honda Honda Diamond Piper Piper Adam Grob Adam Grob Sino-Swearingen Mustang XLS(+*) G150 Eclipse Cessna Hawker Beechcraft Bombardier Gulfstream Embraer * In development Cessna Is Well-positioned for Continued Leadership Source: B&CA and company press releases

Business Jets A Growth Industry Key Drivers Economic expansion Longer cycles with less severe troughs New model introductions Entry-level jets Global expansion, especially Europe Replacement cycle opportunities Commercial airline environment 20% 15% 10% Used Citations as % of Fleet 5% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Corporate Profits International Citation Orders 1,400 1,200 1,000 Real Corporate Profits (8 Q Shift) Jet Shipments 1,400 1,200 1,000 50% 40% 35% 35% 41% 48% 800 800 30% 600 600 20% 19% 400 400 200 200 10% 0 0 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 0% 2002 2003 2004 2005 2006 Source: Global Insight, JetNet, Amstat, Cessna estimates 12

Order Environment $9.0B backlog (excludes $0.5B CitationShares) Booked orders of 496 in 2006 and 122 in 1Q07 2007 sold-out with 375 deliveries More than 400 orders for 2008 delivery International order mix growing, led by Europe Global Order Activity Remains Strong 13

New Products Drive Growth 2004-2010 Citation Mustang $2.5M Citation CJ1+ $4.6M Citation CJ2+ $6.1M Citation CJ3 $7.1M Backlog: ~$750M 1 st Delivery: 07 Backlog: ~$225M 1 st Delivery: 05 Backlog: ~$525M 1 st Delivery: 06 Backlog: ~$950M 1 st Delivery: 04 Citation CJ4 $8.0M Citation Encore+ $8.1M Citation XLS/XLS+ $11.6M Citation Sovereign $16.2M Backlog: ~$1.0B 1 st Delivery: 10 Note: March 2007 backlogs exclude CitationShares Backlog: ~$150M 1 st Delivery: 07 Backlog: ~$2.2B 1 st Delivery: 04/ 08 Backlog: ~$2.1B 1 st Delivery: 04 14

Citation Mustang First fully-certified jet in segment Approved for steep approach Steps-up piston-twin and turboprop owners with a highlevel of brand loyalty >100 European orders First EASA delivery August 2007 FSI Farnborough training 2H07 Established world-class customer support network $2.52 million FAA Cert: 2006 EASA Cert: May 2007 07E Deliveries: 40 Attractive Entry to the Citation Family, Expanding the Addressable Market 15

Citation CJ4 Fully integrated Collins Pro Line 21 avionics Advanced diagnostic systems New standard integrated cabin management system Newly engineered, moderately swept wing Flying the new Williams FJ44-4A electronically-controlled engines $7.995 million First Flight: 1H08 FAA Cert: 2H09 EASA Cert: 2H10 Deliveries: 1H10 Upward Extension to the Single-pilot Certified Citation Family 16

Customer Support Talent Managing Growth Field service engineers Model teams 24x7 support CESCOM enhancements Service Selective expansion of US and international capacity and capability New Products Advanced diagnostics Chief of Maintenance MSG-3 Parts Supplier management Increase global parts availability Improve AOG response Delivering Exceptional Customer Support by Strengthening Global Capability 17

Integrated Supply Chain Lean Enterprise - Building Quality and Managing Growth Standard procedures and mistake-proofing drive and maintain first-time quality Enables flow through variation reduction Improved Independence efficiency 14% (2003-2007) Continued design improvement Manufacturability Serviceability Reliability Globalization Textron Aerospace de Mexico LSA sourcing in low-cost region Leverage Textron Production System, Drive Operational Excellence 18

Business Jet Industry Development Criteria - The 4As Affluence Economic development Business and personal wealth distribution Airports / air traffic control Infrastructure and support Airspace access Political climate and regulatory environment Affordability / acceptance Alternatives and relative cost of operations Several Key Factors Affect the Pace of Development 19

Cessna Global Network Textron Global Resources Cessna Manufacturing Field Service Engineers Authorized Sales Reps Cessna Citation Service Centers Authorized Citation Service Centers Systematically Building Global Network to Grow our Business 20

Europe Current State Affluence Airports / air traffic control Airspace access Affordability / acceptance Overview Robust economic growth generating wealth Weak dollar continues to support sales Jets gaining acceptance as business tools Infrastructure progressing Increasing demand from Russia and Eastern Europe Source: Cessna analysis 21

China and India Affluence Current State Airports / air traffic control Airspace access Affordability / acceptance China Significant pilot shortage ~21% tax on foreign business jets First Citation delivered in 1982, followed by 10 Citations over the next 20 years In the last 2 years, Citation fleet doubled with 8 new and 3 used 120+ new Cessna single-engine pistons will enter flight training by end of 2007 Summary Potential for long-term growth with improved regulations and infrastructure Cessna creating a solid foundation for the future, tapping local capabilities and building industry leadership India Significant pilot shortage ~25% tax on non-airline aircraft imports began 4/07 Infrastructure under strain Growing individual and corporate wealth Aircraft being accepted as business tools Cessna leads industry in units Source: Cessna analysis 22

Global Growth Summary Business aviation shaped in US (~70% fleet) International demand growing, yet fragmented Europe primary driver Emerging countries (e.g., India, China) will slowly develop Strategy focused on customers Create and capture demand Support growing fleet Leveraging global resources (talent, capacity, cost), while minimizing risk and avoiding dilution Cessna Capitalizing on Global Growth 23

Business Performance Units 400 Citation Deliveries 375 $B 5 Revenues 4.9 350 300 250 200 249 307 4 3 3.5 4.2 150 2005 2006 2007E 2 2005 2006 2007E 20% 15% 13.1% Margin 15.5% 16.1% 55% 45% 35% 33% ROIC 49% 50% 10% 25% 5% 2005 2006 2007E 15% 2005 2006 2007E 24

Summary Industry outlook remains positive Growing international order mix Continued investment in customer-focused products Mustang expands addressable market Excellent service and support capability Effectively managing growth and driving operational excellence 80 Years: One Sure Thing 25

Paris Air Show June 20, 2007 Frank Tempesta President, Textron Systems 26

Textron Systems Delivers Growth Company Overview Precision Engagement Overwatch FCS Position Dominant Maneuver Land Vehicles Additional Growth Opportunities International Sales Product Support M&A 27

5 Businesses Linked and Leveraged Through Processes and Strategies ~ 4000 Employees Wilmington, MA Kauai, HI; Maui, HI TacOps: Austin, TX GeoOps: Sterling, VA/Missoula, MT New Orleans, LA Valencia, CA Pacoima, CA Poole, England Williamsport, PA Enable Our Global Customers to Improve the Way They Maneuver, Protect, Fight 28

Textron Systems Vision: Flexible, Efficient Alternative to Large Primes Precision Engagement Surveillance Intelligence Products Precision Weapons Munitions & Sensors Dominant Maneuver Armored Vehicles Marine Craft Vehicle Survivability Aircraft Subsystems & Engines Objective: Diversified Risk / Mission-Focused 29

Strategically Positioned in Growing Areas of the Defense Industry Current Industry Trend The overall defense budget remains strong, but mix of growth drivers is changing Ground forces and equipment supporting GWOT are current focus other programs are bill payers Impact on TS Armored Vehicles Intel Products SFW Near-Term Future Heavy focus on Operations & Maintenance (O&M) to sustain battle-weary forces Continued focus on winning the intelligence battle and improving battlespace awareness International customers applying US operational lessons learned to acquisition strategy Transformational strategies within services take effect (FCS, Sea-basing) Disruptive technologies emerging to replace legacy systems Service & Support Intel Products SFW Armored Vehicles Intel Battlefield Sys Marine Directed Energy Weapons (DEW) 30

Textron Systems $1.2 Billion in Revenues ( 07E) Textron Defense Systems Overwatch Textron Marine & Land HR Textron Lycoming 21% 10% 36% 20% 13% Intelligent Battlefield Systems Combat Vehicles Aircraft Engines Air Launched Weapons Intelligence Products Marine Craft Aircraft and Weapon Subsystems Product Performance Driving Growth 31

Textron Systems Delivers Growth Company Overview Precision Engagement Overwatch FCS Position Dominant Maneuver Land Vehicles Additional Growth Opportunities International Sales Product Support M&A 32

Precision Engagement Strategy: Focused on Improving the Sensor to Shooter Chain Precision Engagement Observe Sensors & Precision Surveillance Understand/ Decide Plan/ Allocate Situational Understanding & Planning Act Precision Effects Surveillance Target Location & Tracking Intelligence Situational Awareness Overwatch Acquisition Mission Planning Precision Strike Battle Damage Assessment Tightly Integrated Chain Provides Time Critical Targeting and Avoidance of Collateral Damage 33

Overwatch: Strategic, Theater, & Tactical Intel REMOTEVIEW Geospatial Analysis AXIS-PRO Multi-INT Analysis Geospatial Operations Geospatial Frameworks & Toolsets for Intel Analysts Commercial Products & Services to Gov t Agencies Key Customers NGA, CIA, NSA, DOE, IAEA Tactical Operations DoD Multi-Intel Analysis Suites, Battle Command Systems DoD Products & Services Key Programs FCS SU & Fusion DCGS-A Currently Exceeding Financial Targets 34

Overwatch Quick Hit Synergies Dismount Control of FCS Unattended Ground Sensors (UGS) Stand-off Intelligence Detection System (SIDS) Visualization & Control Enhancements 35

Overwatch acquisition bridges the tactical domain from sensor to shooter Local Battlefield Precision Engagement Surveillance Intelligence Products Precision Weapons Munitions, Sensors and also leads the direction for growth with strategic reach-back capability 36

FCS Participation: Solid Position Unattended Ground Sensors Accelerated fielding and increased funding Overwatch Providing core Situational Understanding software for FCS Battle Command functions across the Network Intelligent Munitions System remains a core FCS system is now separately funded in President s Budget 37

Textron Systems Delivers Growth Company Overview Precision Engagement Overwatch FCS Position Dominant Maneuver Land Vehicles Additional Growth Opportunities International Sales Product Support M&A 38

MRAP Update ASV is a valued Army asset for GWOT Army funding continuous improvement of ASV to stay abreast of evolving threat BAE RG-33 Force Protection Cougar International MaxxPro GDLS RG-31 Oshkosh Bushmaster PVI Golan MRAP is an Interim Quick Reaction Capability Solution ASV Still Postured Well for the Future 39

Strong ASV Production Through 2009 and Beyond ASV enjoys strong funding support FY07 Suppl. Appropriated/Signed $302M FY08 Budget Requests in Congress $750M+ Deliveries on track 48/month sustained with 60/month capacity demonstrated Number of vehicles deployed in theater continues to increase Product support increasing commensurately High Operational Readiness (OR) 40

ASV Product Support Growth Operational Support Spares Training and Logistics Support Field Support Sales (millions $) 250 200 150 100 50 0 Reset Restoration to desired combat capability Teamed with Army Depot Recapitalization Restoration to combat capability w/performance improvements Historically OEM work 2004 2005 2006 2007 2008 2009 2010 2011 Operational Support Vehicle Reset ASV Operational Spares Support Vehicle And Reset Are Near-term Growth Areas; Long-term Potential In Recap 41

Variants and Mission Modules Combat Combat Support Combat Service Support RSTA Security C2 Engineer Medical APC Knight M1117 ASV C2 Recovery Ambulance Infantry Carrier Vehicle (Iraqi APC) RSTA Block 1 Upgrade Production Prototype 6-Wheeled ASV 6-Wheeled ASV AF Convoy Protection Platform Concept Additional Growth In Adjacent Mission Segments For The ASV Product Line 42

JLTV A Game-Changing Opportunity Awarded 1 of 5 contracts for conceptual design Production Capability High Capacity Surge Protection Protection > Current state Focus on Occupant 360 Protection Performance Mobility Transportability Commonality across FoV Up-Armored HMMWV JLTV Payload HMMWV Performance Payload JLTV - Optimal Balance Of Requirements 43

JLTV Concept Design & Development: Study Contract Focused on conceptual systems design and development Primary Deliverables Modeling & Simulation / Trade Studies / Concept Design / Mock-up Status Final design and mock-up review conducted 24Apr07 Conceptual Design & Mockup Science & Technology Efforts in Support of the Family of Joint (Army & Marine Corps) Light Tactical Vehicles (JLTV) 44

Textron Systems - Sustained Growth Company Overview Precision Engagement Overwatch FCS Position Dominant Maneuver Land Vehicles Additional Growth Opportunities International Sales Product Support M&A 45

Significant International Opportunities Air Launched Weapons Land Vehicles Intelligence Products Intelligent Battlefield Systems TC2 IMS SFW ASV SPIDER UGS 46

Increasing Opportunities for Service and Support Across our Product Lines Air Launched Weapons Product Support Opportunities Land Vehicles Intelligence Products Intelligent Battlefield Systems Aircraft Products SFW ASV TC2 UGS IMS SPIDER Live Fire Training Support Operational Support Reset Recap Training Customized Upgrades On-site Support Field Support Training Spares Performance Based Logistics Maintenance Repair Overhaul Distribution PMA Domestic And International Focus 47

Actively Pursuing Targets within Precision Engagement & Evaluating Enterprise Targets in A&D Yr. Intelligence / Situational Awareness Data Analysis & Visualization Precision Engagement Geospatial Imagery Exploitation Sensors Surveillance Precision Weapons Dominant Maneuver Aircraft Sub- Systems Land Vehicle Marine Vehicle Surviv. Systems 07 Enterprise Targets 08 Primary area of focus of Textron Systems M&A efforts Assessing acquisitive growth opportunistically 48

Strategy for Success Achieve better position: Appropriately sized, optimally shaped, flexible Alternative to large Primes Maximize organic growth: Extend product applications New product innovation Realize synergies Product support Execute complementary acquisitions and strategic partnering A Stronger Aerospace and Defense Position 49

Growing Opportunity Dick Millman CEO, Bell Helicopter Paris Air Show June 20, 2007 50

First 150 Days Staff Excellent Leadership Team and Talent in Place Added Pete Riley, World Class Manufacturing/Lean Process Discipline and Accountability Acceleration of Lean Fortify Internal Supply Chain Outsourcing for the Long Term Priority Focus on Critical Items Support Warfighter 51

Bell Helicopter Leadership CEO Dick Millman EVP Customer Solutions Mike Blake EVP & CFO Tony Viotto EVP Government Programs John Bean EVP Integrated Operations Pete Riley Talent Additions Last Three Years Over 100 Industry Leaders Over 1,100 Engineering & Manufacturing Professionals 52

Military Bell Helicopter $2.5 Billion in Revenues ( 07 est.) Aircraft 60% Com l Cust. Support 40% Military Aircraft Com l Aircraft Cust. Support ~$900 Million ~$600 Million ~$1,000 Million V-22 - Osprey AH-1Z Super Cobra UH-1Y - Yankee OH-58D - Kiowa TH-67 Trainer ARH Armed Recon Eagle Eye - UAV 206 407 412 427 429 430 609 H-2 / 210 Spares Accessories Completions Repair & Overhaul Training Academy Field Services Depot Maintenance Installed Base: 13,000 Balanced Business... Complementing Each Other 53

Government Programs Our Customer Is -- and Will Be -- at War V-22 Osprey Preparing to Deploy H-1 Preparing for Full-rate Production Decision ARH Development on Track & Flying Well VH-71 Presidential Program Moving Forward Kiowa Warrior Still Proving Itself in Combat Continuing Strong Support of Fielded Aircraft Investing in New DoD Requirements Joint Heavy Lift, Joint Multi Role... Substantial Growth in Defense Business 54

Government Product Lines V-22 Osprey AH-1Z Super Cobra UH-1Y Huey ARH-70A USCG Eagle Eye VH-71 Marine One OH-58D Kiowa Warrior TH-67 Creek II Installed Base: 2,500 Military Programs Supporting Our Warfighters 55

V-22 Program $19B Program USMC Amphibious Support Sustained Land Operations Self-Deployment USSOCOM Special Operations Insertion/Extraction WMD Warfare USN Personnel Recovery Fleet Logistics Support Special Warfare 360 MVs 50 CVs 48 MVs Production Ramping from 14 A/C in 07 to ~40 A/C in 12 56

H-1 Upgrade Program Fully Marinized and Shipboard Capable $5.6B Program 84% Commonality Delivered 3 UH-1Y and 1 AH-1Z Aircraft to Date Op-Eval Phase I Complete: Phase II Starts Early 2008 Full-Rate Production Decision Next Year 100 UH-1Ys Utility 180 AH-1Zs Attack Brings Increased Capability and Lethality to the Fight 57

Armed Reconnaissance Helicopter ~$4B Program Militarized Derivative of Bell 407 Ready for Early Operational Test U.S. Army Plans For 512 Aircraft New Engine, Common Avionics and Targeting System are Integrated > 625 Total ARH Flight Hours Significant Foreign Military Potential Rapid Production and Delivery Schedule to Support the Warfighter 58

VH-71 Program ~$1B Program Team of Lockheed Martin, Agusta Westland & Bell LM is Prime and AW & Bell Principal Subcontractors AW Building Major Components Bell Performing Final Assembly and Production Delivery in Texas LM will Install Mission Systems in Owego VH-71s Replace VH-3Ds and VH-60Ns 5 IOC A/C 23 FOC A/C FOC Production Aircraft Built in America 59

OH-58D Kiowa Warrior Diverse Mission Capabilities Over 1.4 Million Flight Hours, Over 290,000 Combat Flight Hours 90 Aircraft Currently Deployed to Iraq Fleet Readiness Average: 76% Full Mission Capable Over 400 Aircraft Rotations to Support OIF/OEF Supporting the Warfighter 60

Bell Helicopter - Commercial Aircraft Orders Strong and Backlog at All-time High Bell 429 Light-twin Will Redefine Segment Expanding Industry-leading Customer Service and Support Upgrading Current Products Investing In New Products Commercial Business Primed for Growth 61

Commercial Product Lines 206B3/L4 407 427 429 430 412 609 Installed Base: 10,500 Meeting Every Mission Requirement 62

Bell 429 Global Ranger Light Twin First-ever Technologies from Bell s Modular Affordable Product Line (MAPL) Unprecedented Cabin and Cockpit Features New High Performance Rotor Technology Successful Flight Test 90% Envelope Expansion Completed (92 Hours of Testing) Certification 2008 Redefining Light Twin Segment Over 220 Orders 63

BA609 Civil Tiltrotor Aircraft Flying in Texas and Italy 359 MPH, 25,000 ft Achieved Target Certification in 2010 Civil Tiltrotor Technology Proven 64

Commercial Deliveries 200 150 100 92 105 111 123 159 ~180 50 0 2002 2003 2004 2005 2006 2007 Commercial Business Growing 65

Growing the Support & Services Business Revenue* ($M) $1,000 $750 CAGR = 13% Military CAGR = 18% $500 $250 Com l CAGR = 9% $0 2000 2001 2002 2003 2004 2005 2006 2007 Plan * Excludes Huey II kit sales. Approaching $1 Billion 66

Growing Capacity Demonstrated Performance ( 04 to 07) Aircraft Deliveries Up 79% Spares Output Up 56% Current Initiatives Productivity Improvements Lean Capital Investment Tools, Processes Increased Outsourcing Global Additional ~70% Capacity Growth By 2010/2011 Multiple Initiatives to Expand Capacity 67

Building and Growing Bell Military Programs Moving to Production Phase 429 Right on Target Derivative Potential World Class Service Business Continuing Growth Expanding Enterprise Capacity Strong Platform for Growth 68

QUESTIONS? 69

Building and Growing Ted R. French EVP & Chief Financial Officer Paris Air Show June 20, 2007 70

2006 Outstanding Year Transformation Strategy Readily Apparent Revenue up 15%, organically Segment profit up 10.6% EPS from continuing operations up 44% Record Aircraft Backlog: $11.6B + $0.8B Bell 429 + $0.5B CitationShares ROIC: 16.8% - Up 360 basis points vs. 2005 730 bps > WACC 71

Textron 25.0% ROIC Compared to Peer Group Mean 20.0% 15.0% Peer Group Mean (14.7%) 16.8% 13.2% 10.0% 9.0% 9.6% 8.8% 10.6% 5.0% 0.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 360 basis point improvement from 2005 72

2006 Outstanding Year Transformation Strategy Readily Apparent Strategic portfolio decisions Divestitures: Textron Fastening Systems Jacobsen commercial grounds care TFC franchise finance portfolio Acquisitions: Overwatch Integrated Survivability Technologies Electrolux Floorplan Financing 73

2006 Outstanding Year Transformation Strategy Readily Apparent New product introductions Textron Systems - M707 Armored Knight Cessna XLS+, CJ4 Greenlee 31 new products 74

2006 Outstanding Year Transformation Strategy Readily Apparent Significant operational improvements Industrial segment margins: Up 30 bps TFC operating efficiency: 370 bps improvement Cessna margins: Up 240 bps 75

2006 Outstanding Year Transformation Strategy Readily Apparent Expanded Capacity Citation Deliveries +22% Commercial Helicopters +29% Helicopter Spare Parts Production +19% Automotive Fuel Systems +300k units Achieved ASV Run Rate of ~48 per month 76

Q1 2007 Outstanding Quarter Transformation Momentum Continues Revenue up 12.6% Segment profit up 26.1% Manufacturing margins up 150 bps EP from continuing operations up 30% Record Aircraft Backlog: $11.9B + $0.8B Bell 429 + $0.5B CitationShares 77

Transforming Textron Our Ongoing Journey to Premier VISION: To be the premier multi-industry company, recognized for our network of powerful brands, world-class enterprise processes and talented people NETWORKED ENTERPRISE A Simpler, More Focused Portfolio of Leading, Branded Businesses in Attractive Industries Enterprise Management How We Manage What We Own Portfolio Management What We Own 78

Portfolio Management 2000 Revenue High INDUSTRY ATTRACTIVENESS Med 61% Low Low Med BUSINESS STRENGTH High 79

Portfolio Management 2006 Revenue (Excludes TFS) High INDUSTRY ATTRACTIVENESS Med >90% Low Low Med BUSINESS STRENGTH High 80

Intrinsic Value Management (IVM) 15% Annual Value Creation Objective Intrinsic Equity Value (IEV) of Multi-Year Plan Intrinsic Equity Value IEV/share requirements for 15% value growth Plans have delivered 18% annual growth over the past 3 years IEV/share of submitted plans 2004 2005 2006 2007 2008 2009 2010 81

Textron Leading Branded Businesses & Attractive Growth Markets Bell 30% Cessna 36% Industrial 27% Finance 7% Bell Helicopter Textron Systems Cessna E-Z-GO Fluid & Power Greenlee Jacobsen Kautex Textron Financial 2006 Revenue: $11.5 Billion 2010 Revenue: $15 - $17 Billion 82

2007 Critical Success Factors Bell Segment Resolve ARH Lots 1 and 2 cost issue Continue overhead reductions in 2007 Increase commercial helicopters deliveries by ~13% Deliver 14 V-22s, 11 H-1s and 530 ASVs Manage supply chain to ensure delivery commitments Integration of Overwatch - Begin synergy projects Obtain further ASV funding 83

Cessna 2007 Critical Success Factors Increase jet deliveries by over 20% Ramp up Mustang production and deliveries Manage supply base Successful negotiation of I.A.M. contract Make LCC decision 84

Industrial 2007 Revenue Midpoint Forecasts E-Z-GO $400 million Fluid & Power $570 million Greenlee $400 million Jacobsen $290 million Kautex $1.6 billion 85

Value Drivers - Industrial Segment Steady operational improvements across the segment Lean implementation continuing Good growth; China expansion Significant new product introductions 86

Critical Success Factors 2007 Industrial Segment Achieve plant performance and profitability targets Limit price givebacks at Kautex Manage commodity cost increases Successfully launch Greenlee hand tools 87

Textron Financial Corporation $10.2B Managed Finance Receivables ( 06) 37% Distribution Finance Aviation 19% Finance 15% Golf Finance Resort 13% Finance 7% Structured Capital 8% Asset-Based Lending Non-Core 1% Liquidating (% of Managed Finance Receivables as of 12/31/06) Growing ~10%/Year 88

Value Drivers Finance Segment Strategic to aircraft, golf & turf Excellent core business Good growth Strength in underwriting Leveraging assets and capabilities 89

Textron Financial 2007 Critical Success Factors Grow managed receivables by ~ $1.5B Drive operating efficiency toward 40% Maintain charge-offs under 75 basis points Maintain nonperforming assets below 2.0% of finance assets 90

Textron - Strong Organic Growth Investing in ER&D and CAPEX to Support Above-Average Growth 2005-2009 Investments - Engineering, Research & Development: $2 Billion + CAPEX: $2 Billion + Creating Value 91

Strong Organic Growth Investing in ER&D and CAPEX to Support Above-Average Growth $, Billions $17.0 10% CAGR Optimistic $15.0 $13.0 7% CAGR Probable $11.0 2006 2007 2008 2009 2010 92

Textron ROIC Compared to First Quartile Peers 25.0% 20.0% Peer Group First Quartile 15.0% Peer Group Mean (14.7%) 16.8% 13.2% 10.0% 9.0% 9.6% 8.8% 10.6% First Quartile represents the best performing companies each year 5.0% 0.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 Transformation Driving Improved Returns 93

Textron Transformation Strategy Driving & Leveraging Growth Strong organic growth Double digit earnings growth Expanding ROIC Premier growth of shareholder value Grow & Innovate Eliminate Waste Reduce Variability 94

Forward-Looking Information Forward-looking Information: Certain statements in this report and other oral and written statements made by Textron from time to time are 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 following: [a] changes in worldwide economic and political conditions that impact demand for our products, interest rates and foreign exchange rates; [b] the interruption of production at Textron facilities or Textron s customers or suppliers; [c] Textron's ability to perform as anticipated and to control costs under contracts with the U.S. Government; [d] the U.S. Government's ability to unilaterally modify or terminate its contracts with Textron for the Government's convenience or for Textron's failure to perform, to change applicable procurement and accounting policies, and, under certain circumstances, to suspend or debar Textron as a contractor eligible to receive future contract awards; [e] changes in national or international funding priorities and government policies on the export and import of military and commercial products; [f] the ability to control costs and successful implementation of various cost reduction programs; [g] the timing of new product launches and certifications of new aircraft products; [h] the occurrence of slowdowns or downturns in customer markets in which Textron products are sold or supplied or where Textron Financial offers financing; [i] changes in aircraft delivery schedules or cancellation of orders; [j] the impact of changes in tax legislation; [k] the extent to which Textron is able to pass raw material price increases through to customers or offset such price increases by reducing other costs; [l] Textron s ability to offset, through cost reductions, pricing pressure brought by original equipment manufacturer customers; [m] Textron's ability to realize full value of receivables; [n] the availability and cost of insurance; [o] increases in pension expenses and other postretirement employee costs; [p] Textron Financial s ability to maintain portfolio credit quality; [q] Textron Financial s access to debt financing at competitive rates; [r] uncertainty in estimating contingent liabilities and establishing reserves to address such contingencies; [s] performance of acquisitions; [t] the efficacy of research and development investments to develop new products; [u] the launching of significant new products or programs which could result in unanticipated expenses; and [v] bankruptcy or other financial problems at major suppliers or customers that could cause disruptions in Textron s supply chain or difficulty in collecting amounts owed by such customers. 95

2001 to 2006 Textron ROIC Total Textron 2006 2005 2004 2003 2002 2001 ROIC Income Income before cumulative effect of change in accounting principle, net of income taxes $ 601 $ 203 $ 365 $ 259 $ 364 $ 166 Special charges * - 112 59 77 109 89 Gain on sale of businesses / product lines - (30) - (15) (25) (339) Tax impact of special charges and gains on sale of businesses - (13) (19) (16) (22) 100 Discontinued operations, net of income taxes 105 313 10 43 (23) 332 Adjustments to discontinued operations, net of income taxes ** - (12) 56 35 19 (16) Distribution on preferred securities of subsidiary trusts, net of income taxes - - - 13 26 26 Amortization of intangible assets, net of income taxes - 2 3 6 7 6 Amortization of goodwill, net of income taxes - - - - - 88 Textron Manufacturing interest expense, net of income taxes 58 58 60 61 67 101 ROIC Income $ 764 $ 633 $ 534 $ 463 $ 522 $ 553 Average Invested Capital Total shareholders' equity $ 2,962 $ 3,464 $ 3,671 $ 3,548 $ 3,670 $ 3,964 Adjustment to shareholder's equity related to FAS 158 $ 324 Total Textron Manufacturing debt, including discontinued operations 1,877 1,872 1,909 1,868 1,823 2,009 Cash and cash equivalents for Textron Manufacturing, including discontinued operations (775) (711) (546) (386) (264) (262) Eliminate cash received from sale of Fastening Systems 318 Due from Textron Finance - - - - (255) (255) Textron Manufacturing mandatorily redeemable preferred securities - - - 243 485 485 Eliminate impact of 2005 charges 166 - - - - Eliminate cash used to acquire Overwatch (165) Eliminate impact of 4th quarter divestitures - - - - - 179 Average invested capital $ 4,541 $ 4,791 $ 5,034 $ 5,273 $ 5,459 $ 6,120 ROIC 16.8% 13.2% 10.6% 8.8% 9.6% 9.0% * 2005 special charges exclude restructuring costs of $6 million. ** Amounts represent adjustments to ROIC income for certain operating (losses) and income included in discontinued operations. Note: 2007 ROIC calculations are not provided as 2007 ROIC estimates represent a range of outcomes across each of the factors within the ratio. 96

2006 Bell Segment ROIC 2006 ROIC income calculation Segment profit 249.0 Interest component of operating leases 4.5 Corporate charge (28.4) Segment ROIC income before income taxes 225.1 Income taxes (64.6) Eliminate after-tax gain on sale of 25% interest in AB139 - Segment ROIC income 160.5 Average invested capital calculation Average segment investment 1,336.3 Operating leases 61.0 Average invested capital 1,397.3 Return on invested capital 11.5% Note: 2007 ROIC calculations are not provided as 2007 ROIC estimates represent a range of outcomes across each of the factors within the ratio. 97

2006 Cessna ROIC 2006 ROIC income calculation Segment profit 644.4 Interest component of operating leases 15.8 Corporate charge (8.7) Segment ROIC income before income taxes 651.5 Income taxes (217.5) Segment ROIC income 434.0 Average invested capital calculation Average segment investment 697.8 Operating leases 192.1 Average invested capital 889.9 Return on invested capital 48.8% Note: 2007 ROIC calculations are not provided as 2007 ROIC estimates represent a range of outcomes across each of the factors within the ratio. 98

2006 Industrial Segment ROIC 2006 ROIC income calculation Segment profit 163.0 Intangible amortization - Interest component of operating leases 5.1 Corporate charge (22.3) Segment ROIC income before income taxes 145.8 Income taxes (35.0) Segment ROIC income 110.8 Average Invested Capital Calculation Average segment investment 1,538.3 Operating leases 69.1 Average invested capital 1,607.4 Return on invested capital 6.9% Note: 2007 ROIC calculations are not provided as 2007 ROIC estimates represent a range of outcomes across each of the factors within the ratio. 99

2006 Finance Segment ROIC 2006 ROIC income calculation Segment profit 210.4 Interest component of operating leases - Corporate charge (24.5) Segment ROIC income before income taxes 185.9 Income taxes (50.8) Segment ROIC income 135.1 Average invested capital calculation Average segment investment 1,063.6 Operating leases - Average shareholders' equity 1,063.6 Return on invested capital 12.7% Note: 2007 ROIC calculations are not provided as 2007 ROIC estimates represent a range of outcomes across each of the factors within the ratio. 100