1. Q4 2015 Earnings Call Presentation
January 27, 2016
The data in this package should be read in conjunction with the Textron earnings release and accompanying tables.
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
2. 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 orother 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 maylooking 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 2015 earnings
l Additi l i f ti i k d t i ti th trelease. 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.
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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3. Key Data - Fourth Quarter, 2015
Q4 2015 Q4 2014
R $3 9B $4 1BRevenues $3.9B $4.1B
Segment Profit $378M $398M
EPS from Continuing
Operations
$0.81 $0.76
Manufacturing Cash Flow
Before Pension
Contributions*
$534M $449M
Pension Contributions $18M $15M
* Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined
and reconciled to GAAP in our earnings release
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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and reconciled to GAAP in our earnings release.
4. Key Data – Full-Year, 2015
Full Year Full YearFull-Year
2015
Full-Year
2014
R $13 4B $13 9BRevenues $13.4B $13.9B
Segment Profit $1,255M $1,214M
EPS from Continuing
Operations
$2.50 $2.15
Manufacturing Cash Flow
Before Pension
Contributions*
$631M $753M
Pension Contributions $68M $76M
* Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined
and reconciled to GAAP in our earnings release
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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and reconciled to GAAP in our earnings release.
5. Textron Consolidated Net Debt
($ millions)($, millions)
YE 2015 YE 2014YE 2015 YE 2014
Cash $1,005 $822
Fi G D bt 913 1 063Finance Group Debt 913 1,063
Manufacturing Group Debt 2,697 2,811
Total Debt 3 610 3 874Total Debt 3,610 3,874
Net Debt $2,605 $3,052
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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7. Finance Segment Credit Statistics
($, millions)
Q4 2015 Q3 2015
($, millions)
60+ Delinquency $69 $66
Non-accrual $84 $94
Finance Receivables $1,105 $1,155
Shareholder’s Equity* $175 $217
*Reflects dividend paid from TFC to TXT of $43M in Q4 2015 and $20M in Q3 2015
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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8. Outlook – Full Year, 2016
EPS from Continuing Operations $2.60 - $2.80
Manufacturing Cash Flow
Before Pension Contributions*
$600M - $700M
Pension Contributions ~$60M
* Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined
and reconciled to GAAP in our earnings release.
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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g
9. Segment Outlook – Full Year, 2016
Segment Revenue Profitability
Textron Aviation ~$5.1B 8.5% – 9.0%
Bell ~$3 4B 10 0% – 11 0%Bell ~$3.4B 10.0% – 11.0%
Textron Systems ~$1.9B 10.0% – 10.5%
Industrial ~$3.8B 9.0% – 9.5%
Finance ~$80M ~$15 million
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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10. Pension Outlook – Full Year, 2016
2016E 2015
Discount Rates 4.75% 4.25%Discount Rates 4.75% 4.25%
Total Pension Cost ~$85M $138M
Assumed Long-Term Rate of
Return
7.75% 7.75%
Pension Contributions ~$60M $68M
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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11. Outlook – Full Year, 2016
2016E 2015
R&D
% of Mfg Revenues
~$615M
4.3%
$618M
4.6%
CapEx ~$475M $420M
Depreciation ~$435M $383M
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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12. Outlook – Full Year, 2016
2016E 2015
Corporate Expenses ~$155M $154M
Interest Expense, net for
Manufacturing group
~$133M $130M
Tax Rate (from continuing
3 0% 28 %
Tax Rate (from continuing
operations)
~31.0% 28.1%
Textron Inc. Q4 2015 Earnings Call Presentation; January 27, 2016
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