2016 Analyst Meeting
Scott Ernest
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.
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 TimeFaster 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. 5
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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3,30019
38260
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
Val
ue
(in
20
16
USD
)B
illio
ns
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
Val
ue
(in
20
16
USD
)B
illio
ns
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 nmCitation Latitude
EIS 2015
3,500 nmCitation Longitude
First Flight CompleteEstimated EIS 2017
4,500 nmCitation 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 footprint17
Best in class
CITATION LONGITUDE
Citation
Longitude
Gulfstream
280
Challenger
350Legacy 500
Range ≥ 3500 nm
Maximum Operating Speed ≥ M0.84
Full Fuel Payload ≥ 1600 lbs
Total DOC < $2000/hr
Quietest cabin in class
EVS & HUD18
Citation Hemisphere
Product Update
4,500 nm
Max Range
102 in.
Diameter
Best in class
Ownership Cost
First flight 2019 19
Best in class
CITATION HEMISPHERE
CitationHemisphere
Legacy 650Challenger
650Gulfstream
450Falcon
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 lbsHigh Speed Cruise
285 ktsRange
1,600 nm21
Best in class
CESSNA DENALI
Cessna Denali Pilatus PC-12
DaherTBM 930
Piper M600
Range ≥ 1600 nm
High Speed Cruise ≥ 285 kts
Full Fuel Payload ≥ 1100 lb
Total DOC < $615/hr
Cabin Width > 60 inches
22NOTE: 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
25Scorpion-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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