Electrical Products Group pConference 2015

Scott Donnelly

May 19 2015

Scott DonnellyChairman & CEO

May 19, 2015

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Forward-Looking Information

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 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 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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T tTextron

i iBell

TextronLeading Branded Businesses

Industrial FinanceTextronAviation33%

Bell

31%

Industrial

24%

Finance

<1%Systems12%

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Cessna AircraftBeechcraftHawker

Bell Helicopter Specialized VehiclesTools & TestJacobsen

Textron FinancialWeapon & Sensor SystemsUnmanned Systems Jacobsen

KautexMarine & Land SystemsTRU Simulation + Training

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2014 Revenue $13.9B2014 Revenue $13.9B

Commitment to Future Growth

Scorpion Hybrid ISR/Strike Aircraft Cessna Citation Latitude

Douglas Equipment & TUG TechnologiesBell 525 Relentless

4

Investing for future growth organically and through acquisitions

Douglas Equipment & TUG Technologiese 5 5 e e t ess

Financial Highlights• 2014 Year-End Gross Manufacturing Debt: $2.8 billion2014 Year End Gross Manufacturing Debt: $2.8 billion

• Gross Manufacturing Debt/2014 EBITDA ~ 2 times

• 2014 Share Repurchases: 8.9 million shares

• 2014 Manufacturing cash flow before pension contributions: $753 million

• S&P Credit Rating upgraded to BBB/A-2 from BBB-/A-3

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Capital available for value creating acquisitions and opportunistic share buyback

Ai ft S l

Textron Aviation$4.6 Billion (2014 Revenue)

Aircraft Sales 30% Aftermarket70%

6Broader selection of products, larger service footprint

Textron Aviation JetsMustang

TurbopropKing Air 350

Piston172S Skyhawk SP

33%

MustangM2CJ3+/CJ4XLS+

King Air 350

King Air 250

King Air C90

172S Skyhawk SP

J182 Turbo Skylane JT-A

Cessna TTxXLS+LatitudeSovereign+

Caravan

Grand Caravan EX

T 6/AT 6

T206H Turbo Stationair

Baron

BCitation X+ T-6/AT-6 Bonanza

Installed BaseOver 9,000

Installed BaseOver 9,000

Installed BaseOver 180,000

7Broad product offering with large installed base

Citation Latitude• State of the art cockpit

• Garmin G5000

• Largest Citation cabinLargest Citation cabin

• 72” height

• Flat floor

• Clarity cabin connectivity

• Speed – 440 knots

LRC R 2 700 2 850 ti l il

Expected EIS 2015

• LRC Range – 2,700 2,850 nautical miles

• Outstanding short field performance – 3,668 3,580 ft

• Industry’s best cabin value - $16.5M y $

• Redefines space between XLS+ and Sovereign+

• NetJets purchase agreement – up to 150 units

• Flight test program completed

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Scorpion ISR/Strike Jet• Designed for air defense,

irregular warfare, border patrol, maritime surveillance, emergency relief, training and e e ge cy e e , t a g a dcounter-narcotics mission sets

• Targeting operating cost under $3 000/hr$3,000/hr

• 300+ flight hours complete

• Completed Transatlantic flight to attend Farnborough and RIAT air shows

• Participated in National Guard’s emergency response training exercise

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I d t i lIndustrial$3.3 Billion (2014 Revenue)

Tools & Test$495 million

Kautex$1,975 million

Specialized Vehicles & Jacobsen$868 million

1010

$868 million

Focused on new products, cost productivity and geographic expansion

I d t i l D i i G th b Industrial – Driving Growth by Investing in New Products

Jacobsen TurfCat

1111

Mower

New products drive growth and profitability

I d t i l Addi N P d t & Industrial – Adding New Products & Markets through Acquisitions & JV’s

Douglas Equipment Secolo JVSherman & Reilly HD Electric

Douglas Equipment Secolo, JV

Tug Technologies Dixie Chopper Endura JV

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Leveraging distribution, adding new products and achieving cost synergies

Tug Technologies Dixie Chopper Endura, JV

T t S t

Marine &

Textron Systems$1.6 Billion (2014 Revenue)

Weapon & 25%Unmanned

Systems

Marine & Land

Systems

49%10%

16%p

Sensor Systems

25% Simulation, Training & Other

Tactical Wh l d

Electronic SystemsUnmanned

S t

Air-to-Ground

WTRU Wheeled Vehicles

Systems Weapons

Unattended G d

CUSV

TRU Simulation + Training

Marine Lycoming EnginesGeospatial Solutions

& Advanced Command & Intelligent Networked

Ground Sensors

1313Expand global presence and customer base worldwide

Information Solutions

Control Technologies

Networked Ground Systems

Unmanned Systems

Unmanned Systems– Shadow® M2– Shadow/Shadow V2– Aerosonde™– CUSV

Command and Control Stations

O S ® G d – One System® Ground Control Station (GCS)

– One System Remote Video TerminalTerminal

– Universal GCS– iCommand™

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Marine & Land Systems

Land• COMMANDO™ Family of

Vehicles

Maritime• Ship-to-Shore Connector• Landing Craft, Air Cushion

• Survivable Combat Tactical Vehicle™

• Motor Life Boat

Canadian TAPV Navy Ship-to-Shore Connector

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Connector

Weapon & Sensor Systems

Protection Systems• Reentry Vehicles

Advanced Weapons• BattleHawk™ Loitering

MunitionS F d W (SFW)

Area Weapons• Sensor Fuzed WeaponCL A W

Munition• Guided CLean Area

Weapons

Sensor Fuzed Weapon (SFW)

• CLean Area Weapon

Area Denial• Spider• Scorpion• Scorpion

Sensors• Unattended Ground Sensors• MicroObserver®

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MicroObserver® Battlehawk™

TRU Simulation + Training

Ai T t Training Centers and Services

Air Transport Simulation

Mission & Maintenance Training

Business & Military Simulation

B-1B Weapon System TrainerMechtronix FFS X™ CJ3 Flight Simulator

2014 Significant Win – Boeing 737 MAX

Selected by Boeing to develop the Full

p yMechtronix FFS X CJ3 Flight Simulator

Selected by Boeing to develop the Full Flight Simulator training suite for 737 MAX

624 planned 737 MAX deliveries per year

~24 Simulators/year

~$200M annual opportunity

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New business established in 2013 to pursue attractive growth market

B ll H li t

MilitaryCommercial

Bell Helicopter$4.2 Billion (2014 Revenues)

MilitaryCommercial~$2.6 Billion; 62%~$1.6 Billion; 38%

206L4 V-22 – Osprey429 AH-1Z - Viper

407412

Installed Base: ~3 000Installed Base: ~10 000

Huey II UH-1Y - Venom

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Installed Base: ~3,000Installed Base: ~10,000

Great platforms with future growth opportunities

Customer Service and SupportBell is the Industry standard for support#1 in Customer Support

• 21 years in a row – ProPilot• 9 years in a row AIN

Spares

• 9 years in a row – AIN

Largest support network• Over 100 customer service facilities Spares

AccessoriesCompletionsRepair & Overhaul

in 34 countries• Well positioned to support our

customers wherever they operateRepair & OverhaulTraining AcademyField ServicesDepot Maintenance

Supporting installed base of ~13,000

Strategically co-locating with

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Electronic LogbookTextron Aviation

#1 Ranked Global Customer Support

• New “Super Medium” category

• Best‐in‐class payload range capability

Bell 525 “Relentless”

• Best‐in‐class payload range capability

• Best‐in‐class cabin and cargo volumes coupled with flexible cabin layout options

• Best‐in‐class crew visibility

• First commercial helicopter with proven fly-by-wire flight controlsproven fly by wire flight controls

• First helicopter with Garmin G5000H avionics

A ionics fl b i e and c e

525 with ARC HorizonCockpit System

• Avionics, fly-by-wire and crew visibility comprise new “ARC Horizon” Cockpit System resulting in unparalleled overall situational awareness increasing safety margins

Speed 155 KnotsRange 500+ NMMGW 19,300+ LbsUseful Load 7,400+ Lbs awareness increasing safety marginsPassengers up to 20

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Bell 505 Jet Ranger X• Cost-competitive, entry-

level aircraft level aircraft

• Best‐in‐class awareness with fully integrated glass cockpit and superb exterior visibility

• Flat cabin floor with 5 forward-facing seats

• Safety enhancing design features to reduce pilot workload, improve situational awareness,

Performance TargetsSpeed 125 knots,

and deliver superior auto rotation capabilities

• First flight achieved in November 2014

pRange 360 to 420 nmUseful Load 1,500 lbsCeiling 11,000 ft

November 2014

> 4,400 Bell JetRangers in service today21

H 1 P Hi hli htH-1 Program Highlights• 147 aircraft delivered thru end of

20142014

• 108 UH-1Y

• 39 AH-1Z

• Pursuing FMS opportunities

• 84% logistics commonality

• Exceptional performance in-theatertheater

• AH-1Z – widest array of ordnance for any attack helicopter

22Versatile Capable, Rotorcraft

V-22 Program Highlights• Strong performance in-

theatertheater

• Included in U.S. Presidential budget for Navy COD mission which calls for 44 mission, which calls for 44 aircraft

• Over 250,000 total flight hourshours

• Pursuing FMS opportunities• MYP II approved

– 99 total aircraft: option for 23 additional units» 2 exercised to-date

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Strong Program Execution and Operational Performance

• Third Generation Tiltrotor

• Army’s Joint Multi Role/Future

Bell V-280 Valory /

Vertical Lift (FVL) Technology Demonstrator (JMR/TD) program– Awarded Technology Investment

Agreement in October ’13Agreement in October 13

– Awarded Technology Demonstrator phase in August ’14

• First Flight Expected in 2017g

• Leading Aerospace Companies Comprise Team

– Lockheed Martin - Meggitt• Speed - 280 KTAS

Mock-up on display at AUSA Conference

– General Electric - Eaton

– Moog - Astronics

– GKN - Lord

– Spirit - AGC Composites

p• Combat Range - 500-800nm• Non-rotating, fixed engines• Passengers – 4 crew + 11 troops

Spirit AGC Composites

Unmatched Speed, Range, Payload, and Value24

Finance Segment(1% of 2014 Textron Revenues)

1Q15• Finance receivables: $1.2B

• Shareholder’s Equity: $228M

25Supporting purchases of Textron-manufactured products

Summary• Strong brands, solid top-line growth outlook

• Investing in new product development and innovation to support growth

• Advance execution and operational performance

• Strong cash flow generation and improving profitability

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F d L ki I f tiForward-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 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 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 in 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

ilit f di i iti b d t t i t d d t i ti h i t l ti li i thmilitary funding priorities or budget constraints and determinations, or changes in government regulations or policies on theexport 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; performance issues with key suppliers or subcontractors; legislative or regulatory q y ; p y pp ; g g yactions, both domestic and foreign, impacting our operations or demand for our products; our 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 or programs; the timing of our new product launches or certifications of our new aircraft products; our ability to keep pace with our competitors in theintroduction of new products and upgrades with features and technologies desired by our customers; pension plan assumptions and future contributions; demand softness or volatility in the markets in which we do business; cybersecuritythreats including the potential misappropriation of assets or sensitive information corruption of data or operational

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threats, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; difficulty or unanticipated expenses in connection with integrating acquired businesses; and the risk that anticipated synergies and opportunities as a result of acquisitions will not be realized or the risk that acquisitions do notperform as planned, including, for example, the risk that acquired businesses will not achieve revenue and profit projections.