2014 NBAA Presentation to Analysts

Company PrivateCompany Private

Scott ErnestPresident and CEO

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.

Th f d l ki t t t bj t t i k d t i ti th tThese 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.p g

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Agenda

• 2014 accomplishments

• Market

• Product update

• Customer service

• Operations

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2014 A li h t2014 Accomplishments

Company PrivateCompany Private 4

One company

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Broadest product line in general aviation

2014

• Ongoing financial improvements

• Citation X+ FAA certification

• CJ3+ FAA certification

• EASA certification for the Caravan EX, Citation M2 and Citation Sovereign+

• Citation Latitude certification on track with four aircraft in flight test

• Scorpion debut at Farnborough and Washington DC

• 50+ T-6 aircraft booked to-date in 2014

• Completed Beechcraft merger

Company Private 6

Beechcraft integration

• Beechcraft and Cessna – the perfect fit; proceeding ahead of plan

• Creating an even stronger talent baseCreating an even stronger talent base

• Executing on integration program to drive significant synergies– Overhead cost reductions

S l Ch i– Supply Chain– Facility utilization

• Leveraging Textron enterprise to increase product offerings

• Enhancing service offerings at company-owned service centers

• Engaging Hawker installed base for new aircraft sales

• Foundation laid for future revenue growth through new customers and technology

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More customers + more products = more revenue

Beech field overview

Plant 4B94

Highlights4.1M Sq. Feet

Highlights4.1M Sq. Feet

B91

FlightDefense Company Logistics

Component Mfg.Composite Mfg.2 Final Assy AreasPaint FacilitiesCompletions

Component Mfg.Composite Mfg.2 Final Assy AreasPaint FacilitiesCompletions

B91Turboprop &Special Missions Defense Company Completions

Experimental8000 Foot RunwayDeliveryLogistics

CompletionsExperimental8000 Foot RunwayDeliveryLogistics

Plant 1

Paint

gg

Plant 3Paint

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Focus on product development

2010-2014

Citation X+Citation Sovereign+Citation Sovereign+Citation LatitudeCitation CJ3+Citation M2King Air 250King Air C90GTxGrand Caravan EXScorpionScorpionAT-6

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Lead generation

• Leverage combined strengths of Cessna and Beechcraft sales teams

• Target industry verticals

• Hawker engagement and conversion

• Leverage Citation and King Air installed base

• Move up customers from Cessna & Beechcraft piston products

• Sales force increased 60% since 2012gy

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Tailoring marketing to specific industries to increase sales

Hawker customer engagement and conversion

• Messaging focused on renewing relationships Installed base

Less than 10 yearsold

More than 10 years old

• Bring customers back into service center network

• Ensure parts availability

Hawker 400 / Beechjet

200+ 450+

Hawker 125 family 400+ 1,100+

Hawker 4000 50+ 0Ensure parts availability

• Position Citation Latitude for Hawker replacement products

Hawker 4000 50+ 0

Premier I/IA 150 100+

Total 800+ 1,650+

• Future products to appeal to both Citation and Hawker customers

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M k tMarket

Company PrivateCompany Private 12

Segment deliveries

1200

1400

1000Jets

Turboprop

s

Jets 2013

Super Midsize 106

Medium 63

Light 123

600

800Uni

ts Light 123

Light Entry 62

400

Turboprops 2013

METP 137

SETP 140

0

200Utility 143

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: GAMA, Textron Aviation Forecast

Market has stabilized

2014 first six months segment share

Quest, 5%TurbopropLight & Midsize Jets

Pilatus, 11%Socata,

12%Piper, 9%

Other, 2%Bombardier,

19%

Embraer, 23% Gulfstream,

11%Eclipse, 5%

Textron Aviation, 61%

Textron Aviation,

42%

Textron AviationTextron Aviation• 71 jets• 98 turboprops• 105 pistons

• 71 jets• 98 turboprops• 105 pistons

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Textron Aviation delivered 29% of all general aviation aircraft in first half 2014Source: GAMA

Textron Aviation aircraft for sale

16.2% 15 7%

18.0%

1100

1200 18.0%1200

Citation King Air

15.7%14.6%

12.7%11.9%

10.5%12.0%

14.0%

16.0%

800

900

1000

1100

10 3%10 5%12.0%

14.0%

16.0%

800

1000

10.5%

8.9%

6.0%

8.0%

10.0%

400

500

600

70010.3%10.5%10.1%

9.1%8.3%

7.5%6.5%

6 0%

8.0%

10.0%

400

600

0 0%

2.0%

4.0%

6.0%

0

100

200

300

400

2.0%

4.0%

6.0%

200

400

0.0%02008 2009 2010 2011 2012 2013 2014

YTD

For Sale (<10 Years)For Sale (>10 Years)

0.0%02008 2009 2010 2011 2012 2013 2014

YTD

For Sale (<10 Years)For Sale (>10 Years)

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Used aircraft market is strengthening

% of Installed Fleet % of Installed Fleet

Source: Amstat, Salesforce.com (Oct. 7, 2014)

Citation Q3 deliveries

Q3 2014Actual

Q3 2013Actual

Mustang 3 6gM2 12 -CJ2+ - 3CJ3/CJ3+ 1 4CJ4 7 8XLS+ 5 4Sovereign+ 3 -X+ 2 -

Total Citations 33 25+8

• Strong market entry for M2 continues• CJ3 YOY volume is down due to transition to CJ3+ production in Q3• Sovereign+ continues to perform well

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Sovereign continues to perform well

18 of 33 deliveries are from products certified within past year

King Air Q3 deliveries

Q3 2014 Q3 2013Q3 2014Actual

Q3 2013Actual

King Air 350i 16 15

King Air 200/250 7 5King Air 200/250

King Air C90GTX 7 6

Total Aircraft 30 26+4

• 4 deliveries to Wheels Up in Q3

+4

p• Strong special mission sales• Segment remains steady

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Continued strong segment performance

P d t U d tProduct Update

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Turboprop product line

King Air 350ER

King Air 350i

King Air 250

King Air C90GTx

Grand Caravan EX

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Caravan

King Air celebrates 50th anniversary

• More than 7,200 King Airs delivered since 1964

• Worldwide fleet accumulated more than 60 million flight hours

• Proven, rugged, reliable platform –operated in nearly 130 countries

Company Private 20January 20, 1964 January 20, 2014

New King Air C90GTx

Avionics

Airframe

Propellers

fi ld f l

Landing GearPropellers

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Improved field performance and distinctive ramp appeal

21

King Air 250Enhanced Payload Option

Enhanced Payload Option available

adds 920 lbs to Maximum Takeoff Weight

for an 870 lb increase in Useful Load

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Special missions

Air ambulanceSurveillanceUtility/transport

Parachute Aerial survey Float aircraft

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Most comprehensive special mission portfolio in general aviation

Parachute Aerial survey Float aircraft

Jet product line

X+

Latitude

Sovereign+

XLS+

CJ4

M2

CJ3+

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Mustang

Latitude development/certification

6,0006,000 Drawings

132,000132,000 Pages

1 Great Airplane

15,000 Schedule

Lines

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Lines16,000 Hours

Citation Latitude update

Two-thirds through program with Four aircraft in flight test programMore than 260 total flights; More than 600 total flight hours

150NetJets order for up to 150 Citation Latitudes

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Citation Latitude update

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Citation Latitude

2 700 nmat LRC (previous 2,500 nm)

2,700 nmNew Range

(p , )

Takeoff distance3,668 feet INDUSTRY

LEADING3,668 feet LEADING

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Longer range, improved runway performance28

Citation M2

Strong market entry

• 43 delivered through Q3

– More than 30% moved from competitive aircraft

• EASA certified

• Garmin G3000 avionics

• Winglets

• 400 kts cruise speed

• Clairity™ wireless cabin management

1,580 nautical miles

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Los Angeles to Chicago | Munich to CairoSingapore to Hong Kong | Rio de Janeiro to Santiago

Citation CJ3+

Six months from announcement to certification

• First delivery in Q3

• Garmin G3000 avionics

• Auto cabin pressurization

• Revamped cockpit

N t– New seats

– Ease pilot workload

– Easy accessEasy access

• High speed internet

2,070 nautical miles

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2,070 nautical milesWashington, D.C. to Mexico City | London to Moscow

Shanghai to Bangkok | Lima to São Paulo

Citation Sovereign+

Continued proven performance

• 27 delivered through Q3

• EASA certification

G i G5000 i i• Garmin G5000 avionics

• Upgraded interior

• Range increaseRange increase

• Clairity™ wireless cabin management system

3,188 nautical miles

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New York to Anchorage | London to DubaiBogota to Buenos Aires | Beijing to Moscow

Citation X+

Fastest civil aircraft

in the worldin the world.

Now delivering customers

more Comfortmore Comfort,

Power and

P fPerformance

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Defense product line

ScorpionScorpion

AT-6 Light Attack

T-6C Trainer

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Farnborough & Washington DC

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Scorpion garnering strong international attention; active discussions with potential customers

Defense update

• Scorpion

– Strong market reception

– 200+ hours flown

Debut at Farnborough &– Debut at Farnborough & Washington DC

• AT-6

– Unique U.S. weapons systems compatibility (G-CLAW)p y ( )

– Training & logistics support

– Mature negotiations with potential t

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customers

C t S iCustomer Service

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Textron Aviation installed base

US/CanadaJet 5,675 China,Turboprop 4,880Piston ~103,000

EMEAJet 1,460Turboprop 1,420Piston ~55,000

ChinaJet 50Turboprop 70Piston ~210

Panama

Latin AmericaJet 1,190Turboprop 1,650Piston 22 000

Asia-PacificJet 300Turboprop 750Piston ~22,000 Piston ~20,000

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Global installed fleet of over 17,000 turbine and 200,000 piston aircraft

Overview

17,000+ Turbine Customer Base

21 Company Owned Service Centers

44 Mobile Service Units

102 Channel Partners102

8 Distribution Centers

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Largest business aircraft fleet and support network

Global company owned service network

Broadest company-owned t k

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Textron Aviation Service Center

global support network

O tiOperations

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Integrated supply chain

• Manufacturing costs continue to trend down

– Cash improvements

– Labor productivity

D fl ti t i l t– Deflationary material costs

• Integration on track

Overhead reduction– Overhead reduction

– Facility optimization

– Operations excellence key focus areasp y

• In-house, cost-effective automation

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Operations excellence - key focus areas

• Capitalize on infrastructure and best practices of both

icompanies

• Leaner, flatter operational organization structure

• Leverage Supply Chain process and buying power

• Mexico footprint, quality, p , q y,process and facility optimization

• Focused manufacturing capital investment

• Improve Beechcraft Aftermarket parts distribution l b ll

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globally

Technology investments

• KUKA robot

R b ti ti• Robotic routing

• Universal skin drill and router

• Extrusion milling

• Hydro-forming

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Summary

• Integration on track

W ll i i d f k• Well positioned for market recovery

• Continued product investment

L t th f C d B h ft• Leverage strengths of Cessna and Beechcraft

• Talent development

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2014 Interns