Upload
textroncorp
View
316
Download
2
Tags:
Embed Size (px)
Citation preview
NBAA ANALYSTNBAA ANALYST PRESENTATIONOCTOBER 23, 2013
Forward looking statement
• Certain statements in today’s discussion will be forward-looking statements including those that discuss strategies goalsstatements, 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 arelooking 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 andfrom 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
SCOTT ERNESTSCOTT ERNESTPRESIDENT & CEO
Outline
• Current Jet Market & Economic Indicators
• Go To Market Strategy
• Product Line-up Innovation
• Supply Chain Productivity
• Strong, Talented Workforce
4
Innovation Lives
5
CURRENT JET MARKET &CURRENT JET MARKET & ECONOMIC INDICATORS
Light and Mid Sales – All OEMs700 H1 Deliveries '13 vs '12
600
700
100
125
H1 Deliveries ‐ 13 vs 12
42%
500
3
2013
2012
2012
25
50
75
53%
300
400
Light Jet
2013
0Midsize H1Light H1
200 Midsize Jet
100
7
‐2006 2007 2008 2009 2010 2011 2012Source: Gama
Economic/Environmental Indicators
• Interest ratesC t fit
• Consumer sentimentE i t i t• Corporate profits
• Global GDP• Aging aircraft
• Economic uncertainty• Jet deliveries• Used inventories• Aging aircraft • Used inventories
8
Competitive Landscape - 2012
Light-Medium Jets (340) SE Piston (785)
+5pp+1pp
CirrusPiper11% DiamondHawker
Bombardier11%
Embraer23%
Cessna34%
Beechcraft2%
32% Diamond16%
Other5%
Cessna
Hawker Beechcraft
9%
Gulfstream3%
Turboprop (361)
53%
+4pp
Beechcraft
Piper9%
Pilatus19% Quest
4%Socata10%
Cessna30%
23%10%Other5%
*excluding Svcs and LSA aircraft (Skycatcher)Source: GAMA, BCA Purchase Planning Guide, Cessna Marketing 9
vs. 2011
Pre-owned Aircraft for Sale
17%
18%1,000
Citations Only
12%
11%
500
6%
0%02006 2007 2008 2009 2010 2011 2012 2013
10
2006 2007 2008 2009 2010 2011 2012 2013
For Sale/Lease % of Fleet for SaleSource: AMSTAT
Resale Value – Mid Segment
90%
100%
80%
Cessna XLS
60%
70%
50%
Lear 40
30%
40%
0 1 2 3 4 5 6 7 8
Hawker 750/800
11
Age of AircraftSource: Vref
GO TO MARKET STRATEGYGO TO MARKET STRATEGY
Global Expansion Sales Team
13
50% Sales Force increase in past 2 years
Expanding Addressable Market
Existing CustomerExisting
CustomerConcept CustomerConcept Customer
CompetitiveCustomerCompetitiveCustomer
GlobalEmergingGlobal
EmergingCustomerCustomer CustomerCustomer CustomerCustomer EmergingEmerging
Main Focus
Education ValueProposition
ExpandingReach
14
Jet Fleet Share by Select Countries and RegionsJet Fleet Share by Select Countries and RegionsJet Fleet Share by Select Countries and Regions
United United Kingdom:Kingdom:
3%3%
Other Other Europe: Europe: 4%4%
iiC d 3%C d 3% Eurozone: Eurozone: 9%9% Middle Middle
East:East:2%2%
Asia:Asia:44%%United States: 60%United States: 60%
Canada: 3%Canada: 3%
Mexico: 4%Mexico: 4%
FLEET
Other Latin America Other Latin America
Africa: 2%Africa: 2%Australia & Australia &
New Zealand: New Zealand:
Mexico: 4%Mexico: 4%
Brazil: 4%Brazil: 4%
T
& Caribbean: 4%& Caribbean: 4% 1%1%
15
Jet fleet in % of total units as of June 30, 2013Source: JETNET iQ REPORT
15
GDP by Select Countries and Regions
UnitedUnitedUnited United KingdomKingdom Other Other
EuropeEurope
C dC dEurozoneEurozone
Middle Middle EastEast
AsiaAsiaUnited StatesUnited States
CanadaCanada
MexicoMexico
GDP
Other Latin America Other Latin America
AfricaAfrica
Australia &Australia &
MexicoMexico
BrazilBrazil
& Caribbean& CaribbeanAustralia & Australia & New ZealandNew Zealand
16
GDP represented by area of circle – from CIA World Factbook data (2012)
16
Expansion into ChinaShijiazhuang
• 2 Caravans delivered in 3Q• Facility complete• Service
Shijiazhuang
ZhuhaiZhuhai
• License – 4Q• Sovereign discussions ongoing• Facility 40% completey % p• Service
Better Service – Every Time
Speed – Right where you need usEfficiency – More places, more of the timeEfficiency More places, more of the time Expertise – Bring your Citation or CaravanLeading the Pack – 50 MSU’s with 10,000 Visits
E panded Ser icesExpanded Services – New STC Activity– Profitable and Growing– Strategic Differentiator
Growing ServicesUnited States International
OrlandoS t
NewburghS A t i
ZurichD t
DusseldorfPSacramento
WichitaMilwaukee
San AntonioMesaGreensboro
DoncasterSingaporeParis
PragueValencia
19
PRODUCT LINE-UP INNOVATIONPRODUCT LINE UP INNOVATION
New product strength
Grand Caravan EXGrand Caravan EXGlobal workhorse
Cessna TTxTrue pilot’s plane
Turbo Skylane JT-AGlobal game changer
21
New Product Strength
Citation SovereignCitation SovereignMost capable mid-sized
business jet
Citation M2Best value entry level y
business jet
Cit ti XCitation XWorld’s fastest civilian aircraft
22
The Innovation Continues
Citation LongitudeMost efficientMost efficient
intercontinental business jet
Citation LatitudeBest mid-sized cabin
23
Citation LatitudeFatigue TestingFatigue Testing
Fuselage Jig Tool
Main Cabin Door T/AElectric Door
24
Wing Mate
Scorpion – Textron AirLand
• ISR/Strike aircraft • 18 month innovation18 month innovation
25
SUPPLY CHAIN PRODUCTIVITYSUPPLY CHAIN PRODUCTIVITY
Supply Chain Productivity
3000
3500125
Per Hour Labor Cost (Fully Burdened)
Output Hrs per Employee
2500
75
100
1500
2000
50
500
1000
25
002010 2011 2012 2013 (Est)
27
Fabrication Technology and Automation
Robotic routing
Universal skin drillUniversal skin drill and route
Extrusion milling
Hydro-forming y g
28
Cessna EHS, Employee EngagementMonthly Total Recordable Injury Rate
2.00
2.50
Monthly Total Recordable Injury Rate
1.00
1.50 ↓38%
0.00
0.50
ResultsContinuous Improvement
Process
Culture Safety Focus
29
STRONG, TALENTED WORKFORCESTRONG, TALENTED WORKFORCE
Aircraft, People, Pride
• 8,000 employees worldwideT l t t d f ithi th• Talent promoted from within the company
• Experienced workforce
31
Talent Pipeline – 2013 Interns
32
Summary
• Committed to Investment• Product Innovation• Product Innovation• Employee Engagement• Talent Development
33
Forward looking informationCertain statements in this presentation and other oral and written statements made by us from time to time are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “guidance,” “project,” “target,” “potential,” “will,” “should,” “could,” “likely” or “may” and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks uncertainties and other factors that may cause our actual results to differ materiallypredictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. 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. In addition to those factors described under “Risk Factors” in our Annual Report on Form 10-K, among the factors that could cause actual results to differ materially from past and projected future results are the following: interruptions in the U.S. Government’s ability to fund its activities and/or pay its obligations; changing priorities or reductions i th U S G t d f b d t i l di th l t d t ilit ti i f i t i bilit t fin the U.S. Government defense budget, including those related to military operations in foreign countries; our ability to perform as anticipated and to control costs under contracts with the U.S. Government; the U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards; changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products; volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our products; volatility in interest rates or foreign exchange rates; risks related to our international business, including establishing and maintaining facilities in locations around the world and relying on joint venture partners, subcontractors, suppliers, representatives, consultants and other business partners in connection with international business, including in emerging market countries; our Finance segment’s ability to maintain portfolio credit quality or to realize full value of receivables and of assets acquired upon foreclosure of receivables; performance issues with key suppliers or subcontractors; legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products; our ; g g y , g , p g p p ;ability to control costs and successfully implement various cost-reduction activities; the efficacy of research and development investments to develop new products or unanticipated expenses in connection with the launching of significant new products orprograms; the timing of our new product launches or certifications of our new aircraft products; our ability to keep pace with our competitors in the introduction of new products and upgrades with features and technologies desired by our customers; increases in pension expenses or employee and retiree medical benefits; difficult conditions in the financial markets which may adversely impact our customers’ ability to fund or finance purchases of our products; and continued demand softness or volatility in the markets in which wecustomers ability to fund or finance purchases of our products; and continued demand softness or volatility in the markets in which we do business.
34