Q413 earnings presentation

Q4 2013 Earnings Call PresentationJanuary 22, 2014

The data in this package should be read in conjunction with the Textron earnings release and accompanying tables.

Textron Inc. Q4 2013 Earnings Call Presentation; January 22, 2014

Forward-Looking Information

Certain statements in this package and other oral and written statements made by Textron from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns 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 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 "Forward-Looking Information" in our fourth quarter 2013 earnings

l Additi l i f ti i k d t i ti th t release. Additional information on risks and uncertainties that may impact forward-looking statements is discussed under "Risk Factors" in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.


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Key Data - Fourth Quarter, 2013

Q4 2013 Q4 2012

R $3 5B $3 4BRevenues $3.5B $3.4B

Segment Profit $307M $281M

EPS from Continuing Operations $0.60 $0.50

Manufacturing Cash FlowBefore Pension Contributions*

$774M $625M

Pension Contributions $21M $224M* Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined

and reconciled to GAAP in our earnings release.


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Key Data - Full Year, 2013

F ll ea F ll ea Full-year 2013

Full-year 2012

R $12 1B $12 2BRevenues $12.1B $12.2B

Segment Profit $963M $1,132M

EPS from Continuing Operations $1.75 $1.97


$256M $793M

Pension Contributions $194M $405M* Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined

and reconciled to GAAP in our earnings release.


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Textron Consolidated Net Debt Reduction

($ millions) ($, millions)

YE 2013 YE 2012YE 2013 YE 2012

Consolidated Cash 1,211$ 1,413$

TFC Managed Debt 1,256 1,686 TXT Debt 1,931 2,301 , , Total Debt 3,187 3,987

Net Debt 1 976$ 2 574$ Net Debt 1,976$ 2,574$


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Finance Segment

($, millions)

4Q13 3Q13Credit Statistics

($, millions)

60+ Delinquency $ 80.0 $88.3

Non-accrual $104.7 $105.3

2013 Year-end Finance Receivables2013 Year-end Finance Receivables

Captive $ 1,363

Non- Captive $ 185

Total $ 1 548 Textron Inc. Q4 2013 Earnings Call Presentation; January 22, 2014

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Total $ 1,548

Outlook – Full Year, 2014

2014E 2013

EPS from Continuing Operations $2.00 - $2.20 $1.75


$600M - $700M $256M

* Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release.


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Pension Outlook – Full Year, 2014

2014E 2013

Discount Rates 5.0% 4.25%Discount Rates 5.0% 4.25%

Unfunded Liability $200M $1.3B

Total Pension Cost ~$130M $226M

Assumed Long-Term Rate of Return 7.75% 7.75%

Pension Contributions $80M $194MPension Contributions ~$80M $194M

Year-over-year Pre-tax P&L Impact ~$45MTextron Inc. Q4 2013 Earnings Call Presentation; January 22, 2014

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2014E 2013

R&D% of Mfg Revenues

~$490M3.7%

$511M4.3%

CapEx ~$425M $444M

Depreciation ~$340M $335M


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Segment Outlook – Full Year, 2014

SegmentRevenue

($, Billion) Profitability

Cessna ~$3.3B 2.5% – 3.5%

Bell ~$4.5B 12.0% – 12.5%$

Textron Systems ~$2.0B 9.5% – 10.0%

Industrial ~$3.3B 8.25% – 8.75%

i $ $ illiFinance Not Meaningful $5 - $10 million


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2014E 2013

Corporate Expenses ~$150M $166M

Interest Expense, net for Manufacturing group ~$117M $123M

Tax Rate (From continuing 3 % 26 %Tax Rate (From continuing operations) ~31.5% 26.1%


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2014 Year-Over-Year EPS Analysis

(Continuing Operations)(Co t u g Ope at o s)

2013 EPS $1 75 2013 EPS $1.75 Tax ($0.14)TFC Earnings ($0.10)Interest Expense $0.012013 Cessna Restructuring $0.07Pension Expense $0.11 Underlying Manufacturing Business $0.40

2014E EPS (Mid-point) $2.10


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Q4 2013 Sales Growth

Sales Growth

M&AImpact

CoreSales

Growth

FX Impact Unfav./

( )

OrganicGrowth Before Growth (Fav.) FX

Cessna 2.4% (0.7%) 1.7% - 1.7%

B ll 19 7% 19 7% 19 7%Bell 19.7% - 19.7% - 19.7%

Textron Systems (28.4%) - (28.4%) - (28.4%)

Industrial 9.5% (2.3%) 7.2% (0.4%) 6.8%Manufacturing 4.6% (0.7%) 3.9% (0.1%) 3.8%

Finance (25.7%) - (25.7%) - (25.7%)Total Segments 4.3% (0.7%) 3.6% (0.1%) 3.5%


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Investor Relations

Q413 earnings presentation