2015 Analyst Meeting Scott Ernest

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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.

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.

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Broadest product line in general aviation

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Textron Aviation

Senior Leadership Team

Russ Bartlett Military

Ron Draper ISC

Chris Hearne Jets

Doug May Pistons

Blake Meyen Legal

Dave Rosenberg Strategy & Integration

Eric Salander Finance & IT

Bill Schultz China Business

Development

Kriya Shortt Sales &

Marketing

Christi Tannahill Turboprops &

Special Missions

Michael

Thacker Engineering

Brad Thress Customer

Service

Jim Walters Human Resources

& Communications

Scott Ernest President & CEO

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Agenda

• 2015 Accomplishments

• Sales & marketing

• Market

• Product update

• Customer service

• Operations

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2015 Accomplishments

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2015 Accomplishments

• Integration execution

• Certification of Citation Latitude

• Longitude unveiling at NBAA

• Hemisphere announced at NBAA

• King Air Fusion entry into service

• Wheels Up exercised options for 35 King Air 350i turboprops

• Continued profit growth

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Financial performance

Margin expansion driven by synergies & manufacturing efficiencies

(In millions of dollars)

9 Months

ended Sep. 27,

2015

2014 Full year 2013 Full year

Revenues $3,334 $4,568 $2,784

Segment profit $262 $234 $(48)

Segment profit

margin 7.9% 5.1% -1.7%

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2015 YTD

2014 YTD

Light Jets 70 65

Midsize Jets 36 39

Turboprops 145 136

Pistons 189 171

T-6 30 16

Total Aircraft 470 427

2015 deliveries progressing as expected

Deliveries as of 10/3/15

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Integration

• Identified best practices and key talent

– Cessna product development process

– Beechcraft special mission business

• Synergy drivers

– Headcount reduction completed

– Sourcing productivity

– Negotiated combined union contract

• Hawker engagement program

• Utilize both companies’ technology for product

development

• Enhanced service offerings at company operated

centers

• Leverage current facility footprint to drive growth

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East campus transformation

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Customer support, delivery & flight ops

B94 – Today training center / IT servers 2015 Aftermarket large assemblies

Plant IV King Air / Baron / Bonanza 2015 / 2016 – Longitude Final Assembly

Plant III composite & metal bond 2015 / 2016 composite COE / experimental/Longitude Development

Paint facility

Plant I Fabrication

2016 / 2017 – Move to Pawnee

2017 - Experimental

T-6 Assembly

B89 - Today production warehouse

2015 Aftermarket warehouse

Employee flying club

B31 – Upgrades for experimental

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Strategic advantage

• Largest installed base

• Leading position in turboprops & jets

• Rapid product development &

certification

• Strong service network

• Size and scale

• Technical expertise

• Execution

• Productivity

• Product performance and reliability

• Low cost

Jets installed base

Over 9,000

Turboprops installed base

Over 8,500

Pistons installed base

Over 200,000

Textron Aviation strategic position & strengths

Leading the industry in certifications

Q2 certification

Citation Latitude

Citation X+

Citation Latitude

Citation Sovereign+

Citation CJ3+

Citation M2

King Air 350i Fusion

King Air 250 Fusion

Grand Caravan EX

Certifications 2012-2015

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Sales & Marketing

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Focused sales & marketing

• Global sales footprint worldwide

• Continue to invest in sales team

– 75% sales team growth since 2011

• Focused lead generation strategy

• Latitude global demo tour

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Wide industry coverage

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NBAA 2015

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Hawker customer engagement

• Continue relationship building to ensure

Hawker owners feel part of family

• Support Hawker aircraft at Textron Aviation

service centers

• ProAdvantage

• ProParts

• Leveraging customer input to support new

product development

• Latitude & Longitude ideal products for

Hawker customers

• Contacted 100% customers with aircraft

<10 years old

Installed base

Premier 280

Hawker 400 700

Hawker 987s 1450

Hawker 4000 70

Total 2,500

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Market

Industry deliveries

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Turboprops 2014

METP 129

SETP 155

Utility 138

Jets 2014

Super Midsize 104

Medium 92

Light 119

Light Entry 73

Very Light 12

Source: GAMA;

Demand has stabilized

0

200

400

600

800

1000

1200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Jets Turboprop

For Sale (<10 Years)

For Sale (>10 Years)

Source: Amstat, Internal database; November 2015

PRE-OWNED

CITATIONS

PRE-OWNED

KING AIRS

PRE-OWNED

HAWKER

Aircraft available for sale improving

Significant improvement from 2008 downturn

Aircraft <10 Years Old

60% IMPROVEMENT

43% IMPROVEMENT

31% IMPROVEMENT

0

200

400

600

800

1000

2008 2015 2008 2015 2008 2015

CITATION KING AIR HAWKER PREMIERBEECHJET

<10 years >10 years

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Product Update

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Turboprop product line

King Air 350ER

King Air 350i

King Air 250

King Air C90GTx

Grand Caravan EX

Caravan

Multi-engine

Utility

New Single-engine

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1,000th King Air 350

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King Air Fusion upgrade

• Announced at EBACE 2015

• First delivery Q4 2015

• Touch screen 14 inch displays

• Integrated flight critical information

• Mandate ready

• Open and scalable architecture for

future upgrades

• Modern capabilities

State-of-the-art avionics and cost reduction

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Wheels Up

• 35th King Air 350i delivered in Q3

• 35 more 350i’s ordered in Q2

• Expect over 2000 members by year

end

• 15 pre-owned Excel & XLS in fleet

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Special Missions

Broadest Special Mission portfolio in general aviation

Air ambulance

Aerial survey Flight inspection

Training Utility

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• Caravan installed base increased by

40% since 2013

• Expect to deliver 20+ Caravans in

2015

• 20 Grand Caravan EX Amphibians

order by Joy Air in Q3

Turboprop success in China

Shijiazhuang factory

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Jet product line

Mustang

M2

CJ3+

CJ4

XLS+

Latitude

Sovereign+

X+

Hemisphere

Longitude

TEXTRON AVIATION

One Citation leads to another

2,700 nm Citation Latitude

EIS 2015

30 *Range with 4 passengers

CITATION LATITUDE

Performing better than promised

• Range

• Payload

• Operating cost

BEST IN CLASS

• Runway performance

• Fit and finish

• Lowest approach speeds

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TEXTRON AVIATION

One Citation leads to another

2,700 nm Citation Latitude

EIS 2015

3,400 nm Citation Longitude

EIS 2017

*Range with 4 passengers 32

CITATION LONGITUDE

Setting a new super midsize standard

Full Fuel Payload

1,500 lbs High Speed Cruise

476 kts Max Range

3,400 nm

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Longitude is segment leader

Citation

Longitude Challenger 350 Legacy 500

Range (M.80, 4-pax)

3,400 nm 3,233 2,900

HSC (max @ 43,000ft)

476kts 470kts 467kts

Baggage

allowance (in-flight accessible)

1,115 lbs 795 419

Leg room 30” 25” 27”

Cabin altitude (45,000 ft)

5,950 ft 7,850 6,000

Operating cost (per nm: 4-pax, M.80, 1,000nm)

$4.72 $4.98 $4.84

Sources: B&CA’s “Purchase Planning Handbook” (June 2015), Conklin & deDecker’s “The Aircraft Cost Evaluator” (2015, Vol II), OEM websites

CITATION LONGITUDE

Generous in size, equipped for comfort

15 large windows optimally located for viewing

Largest legroom in class

In-flight accessible baggage

Large galley for food prep 5,950ft cabin pressure at 45,000ft

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15_09_LONGITUDE_2335_fixed_reflections

CITATION LONGITUDE

Leveraging proven systems

Garmin G5000 avionics Honeywell HTF 7000-series engine, APU

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CITATION LONGITUDE

Timeline

2015 – AIRCRAFT DEBUT

Mid-2016 – FIRST FLIGHT

2017 – FIRST DELIVERIES

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TEXTRON AVIATION

One Citation leads to another

2,700 nm Citation Latitude

EIS 2015

3,400 nm Citation Longitude

EIS 2017

4,500 nm Citation Hemisphere

FIRST FLIGHT 2019

*Range with 4 passengers 38

CITATION HEMISPHERE

Expanding Citation reach

First flight 2019

4,500 nm

Max Range

102 in.

Diameter

Best in class

Ownership Cost

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Defense

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• T-6 trainer

– In-use with 20+ international air forces

– Sold 925 to date

– Sold out through 2016

– Marketing internationally

• AT-6 light attack

– Launch customer in-works

– Focused on international opportunities

T-6 Texan & AT-6 Wolverine

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Scorpion ISR/Light Strike Jet

• Scorpion 500+ hours to date

• Production version (P1) to fly Q2 2016

• Many customer demos executed

• Working with US government to certify

through Non-DOD Military Aircraft

Airworthiness Accreditation

– Industry-funded effort

– Process to commence in January

– “Not inventing a new process” - will

use standard USAF procedures

– 3 phase process (9 mo. to 2 yrs.)

– End state: “USAF Airworthiness

Accreditation”

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Customer Service

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Global installed fleet of over 17,500 turbine and 200,000 piston aircraft

Textron Aviation installed base

Panama

US/Canada

Jet 5,700+

Turboprop 5,000+

Piston ~103,000

Latin America

Jet 1,200+

Turboprop 1,650+

Piston ~22,000

EMEA

Jet 1,460+

Turboprop 1,490+

Piston ~55,000

China

Jet 50+

Turboprop 100+

Piston ~220

Asia-Pacific

Jet 300+

Turboprop 750+

Piston ~20,000

17,500

200,000

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60

2,900

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Turbine aircraft

Piston aircraft

Factory-owned service centers

Mobile service vehicles

Employees

Dedicated service aircraft

Combined service network

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• Enhancing global parts

distribution

• ProAdvantage for King Air

and Hawker

• Leveraging technology

• Interactive webinars

• E-commerce

• Single number phone

system

• Seamless customer

experience

Parts & programs

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ProOwnership

• Ensure smooth ownership transition

• Select and hire dedicated flight crew

• Complete maintenance oversight

• Total trip support & concierge

• Hangar selection

• Assistance with insurance and financing

• One monthly invoice to customer

Seamless transition into aircraft ownership

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Operations

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World class operations

• Workforce engagement & productivity

• Continue to drive costs down

• Maximize use of current facility footprint

• Factory of the future

• Investment in robotics

• Low-cost producer

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Transforming assembly through technology

• Digital factory

• Automation

• Vertical assembly tooling

• Reduced labor hours

• Faster learning curve

• Lower tooling spend

Sovereign Latitude

Manufacturing Labor

-25%

Lab

or

hou

rs

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Textron Aviation operational investments

Composite COE

Mobile robotics

Fabrication – 5 axis

machining

Integrated customer

spares warehouse

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Summary

• Market is stable

• Integration complete

• Industry’s largest installed base & global service network

• Low-cost focus creates ability to compete in all market conditions

• Expanding addressable segments with Longitude, Hemisphere & SETP

• Continued investment leveraging expertise & speed in product development

and certification

• Innovation leadership in aircraft design, manufacturing & selling

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Questions

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