Slide 1: TZ Limited ASX cover letter: Textron analyst presentation
TZ Limited ACN: 073 979 272 Level 12, 92 Pitt Street Sydney 2000 NSW Australia Ph: (+61 2) 9223 8044 Fax: (+84 2) 9223 8820 Web: www.iz.net 8 July 2005 Lodged by ASX Online — 52 pages The Manager Announcements Company Announcements Office Australian Stock Exchange Ltd Dear Sir/Madam TEXTRON INC ANAL
Slide 2: Textron positions Intevia as a strategic growth platform
Textron Inc. (NYSE:TXT) positions Intevia™ as a strategic growth platform for Textron Fastening Systems. The Directors consider it appropriate, given the significance of its relationship with Textron Fastening Systems (TFS) to highlight material from an investor briefing delivered by Textron Inc’s (
Slide 3: The Power to Grow - Paris Investor Briefing
The Power to Grow Paris Investor Brie! ing June 14, 200
Slide 4: Forward-looking Information
TEXTRON Forward-looking Information Certain statements in today's discussion will be 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. Please see the full disc
Slide 5: Textron - Outlook
Textron - Outlook « Tremendous Growth Potential - New Products - Government Program Ramp-ups - Strengthening End-Markets * Transformation Drives Accelerated Financial Performance « Building on Strong Results ~ 2004 Revenues, $10.2 Billion - Manufacturing Margins, Up 90 bp ~ Q1 2005 Revenues $2.8 Bil
Slide 6: Textron's Transformation Strategy
TEXTRON Textron’s Transformation Strategy D ENTERP A Simpler, More Focused Porticlio of Leading, Branded Businesses in Attractive Industries Enterprise Portfolio Management || Management How We Manage What What We Own We Own
Slide 7: Simpler, More Focused Portfolio
TEXTRON — OSIM NETWORKED ENTERPRISE F- Simpler, More rocused Portfolio of Leading, Branded = Fastening Industrial Finance Systems = Bell Helicopter Textron E-Z-GO Textron Fastening Financial Textron Systems Fluid & Power Systems Greenlee Jacobsen 2004 Revenue: $10.2 Billion All presentation revenues
Slide 8: Portfolio Management
Portfolio Management = rj 7 ~ (4 - wn > a z cm) ATTRACTIVENESS Low Med BUSINESS STRENGTH Divested or Liquidated: - $2.4 Billion in Manufacturing Revenue: - $1.3 Billion in TFC Receivables |
Slide 9: Enterprise Management
Enterprise Management Focus - e Making Customers Successful e Attracting and Developing Talented People « Deploying World Class, Enterprise-common Processes Numerous Initiatives - e Textron Six Sigma e Integrated Supply Chain e Common Employee Health Care Plan ¢ Consolidation & Outsourcing of IT Inf
Slide 10: Enterprise Management Is Ongoing
Enterprise Management Is Ongoing Incremental Investments in 2005 (FY $0.37 per share, Q1 $0.14 per share) eIncrease inR & D e Textron Six Sigma Lean Acceleration eKey IT Systems Development e Expansion of Employee Training and Development e Creation of Enterprise-wide Marketin and Customer Managemen
Slide 11: Textron's Transformation Strategy
TEXTRON Textron’s Transformation Strategy A Simpler, More Focused Porticlio of Leading, Branced oni Portiolie Management : Bnterprise Management We Own We Own i i HOW We Manage What |_| WHAT i . a Our Vision “The Premier Multi-industry Comp
Slide 12: Bell Segment
Bell Segment $2.25 Billion in Revenues Bell Textron Helicopter Systems 28% ee Great Growth Potential.~.. Double Revenues by 2010
Slide 13: Bell Helicopter
Bell Helicopter Revenues: $1.6 Billion Military: 48%, Commercial: 52Y US. Miltary Commercial Aircraft Support Alrcraft Support ~ $570 Million ~ $200 Million ~ $450 Million ~ $395 Million Sisson zg es A V-22 - Osprey Spares Spares AH-12 — Super Cobra Overhaul & Repair Huey IT UH-LY - Yankee Technical
Slide 14: Bell Helicopter - V-22 Program
Bell Helicopter V-22 Program _ $19B Program 458 Total Units Transformational, Critical to Marines
Slide 15: Bell Helicopter - Military
Bell Helicopter - Military V-22 Osprey ene Game-Changing!
Slide 16: V-22 Osprey - Program Progress
TEXTRON V-22 Osprey - Program Progress e Flight Tests Validate Aircraft’s Performance e Successful Testing in Icing, Desert & Shipboard Environments e OPEVAL Underway e Decision for Full-Rate Production in Q4 2005 e Ramp to 39 deliveries in 2011; ~$1.8 billion
Slide 17: H-1 Upgrade Program
H-1 Upgrade Program a d Low Cost / High Performance program ©84% Commonality Between Y and Z e Continued Progress in booms Developmental Testing UH-1Y 100 Units «Low Rate Initial Production Underway e Operational Evaluation in 2005 ¢ Begin Delivering Aircraft in 2006 Another Significant Growth Oppor
Slide 18: Presidential US101 Win
Presidential US101 Win ¢ Initial Contract - Systems Development & Demonstration Phase Lockheed Lead; Bell/Agusta JV Total Initial Contract: $1.7 Billion Bell: ~ $200 Million (~12.5%) 6 Initial Aircraft 2005 - 2010 ~ Final Assembly Will Transition to Amarillo ¢ Total US101 Program Potential: ~ 23 Uni
Slide 19: Other U.S. Government Helicopter Opportunities
TEXTRON Other U.S. Government Helicopter Opportunities Program Armed Reconnaissance Helicopter Timing of Decision Q3 2005 Estimated Revenues ~$1.8 Billion Potential Bell Platform 407 Light Utility Helicopter Q3 2005 ~$1 Billion Personnel Recovery Vehicle Q1 2006 ~$2.3 Billion Customs and Border Prot
Slide 20: Foreign Military Sales Opportunities
TEXTRON Foreign Military Sales Opportunities H-1, Eagle Eye, V-22 $8 Billion of Total Opportunities Through
Slide 21: Commercial Helicopters - Investing in Existing Product Line Enhancements
TEXTRON Commercial Helicopters — Investing in Existing Product Line Enhancements Model Customer Benefits Timing 150 Ibs Additional Load Bell 206B3 2004 Reduce Operating Costs Reduced Operating: Costs and 2004 Bell 407 Increased Reliability Through 53 Improvements 2005 240 Ibs Additional Load Bell 41
Slide 22: New Introduction from Bell
New Introduction from Bell Bell 429 Global Ranger Light Twin e “First-ever” Technologies from Bell’s Modular Affordable Product Line e Unprecedented Cabin and Cockpit Features. e New High Performance Rotor Technolo e Currently over 100 Reservations e First Delivery - 2007
Slide 23: Bell's Next Generation of Helicopters
Bell’s Next Generation of Helicopters Modular Affordable Product Line (MAPL) e Customer focused development ~ Noise reduction ~ Open cabin ~ Higher productivity (S108 | Opportunity « Commonality benefits for the customer - Overall affordability ~ Reduced training ~ Reduced inventory - Improved safet
Slide 24: Expanding Our Aftermarket Business
TEXTRON Expanding Our Aftermarket Business Completions Services Strategy: Acquisitions: « Expand aftermarket « Edwards and Associates business for Bell fleet ; : « Carbide Technology ° Extend selectively into « Acadian Composites #1 in Product Support. ~ 11 Consecutive Years ~ Pro Pilot Magazine
Slide 25: Textron Systems
Textron Systems $640 Million in Revenues Aircraft Precision Aircraft Marine & Products Engagement Engines Land a Combat Vehicles Intelligent Battlefield Systems Air Launched Weapons
Slide 26: Textron Systems - ASV
Textron Systems - ASV i OE, M1117 Armored Security Vehicle Ramping Production to 48 per month by at ~$700,000/unit
Slide 27: Cessna
Cessna $2.5 Billion in Revenues Single Citations Used Parts, Service Citation Aircraft _ & Other
Slide 28: Cessna - Industry Leader
Cessna - Industry Leader New Products Drive Purchases New Cessna Jets Launched Gulfstream 2000 = 2004 Sto Cj1 Bombardier on 18% C33 Encore Citation XLS 53% Sovereign Raytheon 22% ; Percentage Jets Shipped Light and Midsize, ry) it oon 2000 ~ 2004
Slide 29: New Products Drive Growth
New Products Drive Growth New Products Coming in 2005 - 2006 Citation Mustang $2.4M Backlog: ~$635M Citation - a Citation Cyi+ Cj2+ $4.1M i $5.5M Backlog: Backlog: ~$135M ~$375M Backlog as of Q1 2005
Slide 30: Cessna Aircraft Product Range
TEXTRON Cessna Aircraft Product Range Step-Up Strategy $2.4M $4.3M $5.7M $5.9M $6.0M $7.9M $410.1M $14.8M $19.3M @ e T cx Sovereign XLS Encore C33 Bravo $171,000 $287,000 $400,000 CJ2+ Chit Mustang 65-75% of Citation Caravan Sales Are Repeat 206 Purchases 182 172 Cessna Pilot Centers ~ Foundation fo
Slide 31: Cessna Strong Growth Outlook
Cessna Strong Growth Outlook ¢ 2004 Demand: > 330 Orders « 2003 Ending Backlog: $4.4 billion 2004 Ending Backlog: $5.8 billion (Includes CitationShares) * Near-term Outlook (Units) Delivered Backlog CitationShares (Fractional Orders) Total Orders Planned Deliveries
Slide 32: Cessna Jet Deliveries and Margins
TEXTRON Cessna Jet Deliveries and Margins Leveraging Top Line Growth 2005 - . Guidance Jet Deliveries 12.5% - 13.5% NOP Margin saneaqaq nun
Slide 33: Textron Fastening Systems
Textron Fastening Systems $1.9 Billion in Revenues o a — 6 o de a ~_ o Q hee @ a & +7 o ud ~$330M *TORX PLUS® | *Mag-Form® *Hangermate® | oPT® *Taptite® *Strux® £ eTapping : & Screws *Socket Screws: , *Hex Cap Screws ~$460M *Cold Formed Specials «Sheet Extrusions «Assemblies «Engineered Stampings eI
Slide 34: TFS Growth & Performance
TEXTRON TFS Growth & Performance Improvement Strategy Snapshot CUSTOMERS ¢ Target large, global manufacturers who require a broad range of products and services « Focus on top 1,000 customers that _ generate 90%+ of sales CHANNELS | « Drive target accounts to Full | Service Provider (FSP) model ¢ Of
Slide 35: TFS - New Products Growth
TFS - New Products Growth ($ Millions) 600 500 5 400 | 300 | 200 + 100 5 | 0 2002 2003 2004 2005 2006 += 2007 Amount of New Product Sales and asa Percent of Total Fastening Systems Sales ie om | New Product Growth Generates Top Line Gro and Expansion of Margins and Returns
Slide 36: Intevia - Intelligent Fastening System
TEXTRON Intevia™ - Intelligent Fastening System e Smart materials actuation « Embedded microprocesso e Multi-functional « Software contro
Slide 37: Intevia Intelligent Fastening System
TEXTRON Intevia™ Intelligent Fastening System “Applications for automotive production, service and dismantling will be limited only by the creativity of the engineering community.” - European Automotive Design, Feb 2004 “Intelligent Fasteners could change everything. Use them to rethink the Smart de
Slide 38: Intevia Intelligent Fastening System
TEXTRON Intevia™ Intelligent Fastening System
Slide 39: Industrial
Industrial e $3.0 Billion in Revenues e Five Major Businesses Greenlee $293 million Jacobsen $367 million Fluid & Power $463 million E-Z-GO $341 million
Slide 40: Greenlee Professional Tools Overview
TEXTRON Greenlee Professional Tools Overview Bending -Hand Benders -Elec. Benders -Hydraulic Benders Connectors -Ferrules -Terminals -Lugs -Connectors Key Channels »Catalog »Electrical eindustrial Retail «Tool House aTelco’s Holemaking -Knockouts -Holesaws -Auger Bits ~Drill Bits Pulling -Fish Tapes
Slide 41: E-Z-GO Overview
E-2Z-GO Overview Business/Commercial Consumer After-Market Golf Industrial Commercial Fleet Golf Titan/875 Shuttles MPT/Hauler | Hauister Bellhops Refreshers Tug Turf Maint. Minute Miser Stock Chaser Trail Individual ST 350/480 Freedom LE ST 2+2/Sport | “Freedom SE Clays Car ST 4X4 Service Parts E2c
Slide 42: Jacobsen Overview
Jacobsen Overview G Turf -Greens Mowers ~ Wide Area Rotary Mowers - Wide Area Mowers -Fairway Mowers ~ Zero Turn Radius Mowers ~ Zero Turn Radius Mowers ~ Utility Trucks & -Trim Mowers De-Thatchers - Out-Front Rotary Mowers implements -Rough Mowers Aerators - Aerators ~heration Turf Harvesters ~ De-
Slide 43: Fluid & Power Overview
Fluid & Power Overview Hydrocarbon Standard Products Engineered Products Processing Polymer Systems Produc 5 Small Players in Global, Fragmented Industries
Slide 44: Kautex Overview
Kautex Overview Fuel Systems — Complete Systems — Fuel tanks — Filler pipes Key Channels * Automotive « Industrial Clear Vision Functional Others (Packaging, CWC, Components Micromatic) . C - HVAC ducts — Bottles - “Under the hood”. — Canisters e.g. Engine ducts “Camshafts ~ Non- automotive = Finish
Slide 45: Market Penetration of Plastic Fuel Systems
Market Penetration of Plastic Fuel Systems 2003 2006E 70% 80% = ~ Partial Zero Emission Vehicle (PZEV) ~ Advanced Products
Slide 46: Kautex - China Growth Strategy
TEXTRON Kautex - China Growth Strategy 8 Million Units Car production (CSM data) (Forecast) 6 Kautex tank production 5: 4 3 2 1 of 2005 2006 2007 2008 2009 Quadruple Chinese revenues by 2009 (25% of Chinese fuel systems sales) Generate growth through new model introductions” eContinue investment in
Slide 47: Kautex - China Growth Strategy
TEXTRON Kautex - China Growth Strategy AS) ecw BMW) Brilliance China Automotive GM Shenyang BAEC Lyundal & Joop Bebe: | China FAW Group Corporation Ba Micuven / Being: aah DC / Beijing Aut GM? Yantal. BC: Fi Nissan/ Dong © Fiat / Jiangsu Nanva Auto Co.; Ltd. WECO, Fe Vet Shanghai Automotive Co.; Lid
Slide 48: Textron Financial Corporation
Textron Financial Corporation Distribution Aircraft Golf » Finance Finance Finance > Resort Structured Asset-Based Non-Core Finance Capital Lending y Liquidating $9.3 Billion - Average Managed.& Se Vik Finance Receivables as of Qi 2005
Slide 49: Favorable Credit Quality Indicators
TEXTRON Favorable Credit Quality Indicators 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% ‘98 "99 ‘00 ‘O1 ‘02 ‘03 ‘04 ‘os Q1 «O~ Non- Performing Assets 60+.Delq. —@® Charge-offs (annualized rate)
Slide 50: Conclusion
Conclusion e Outlook Increasingly Positive - Significant Top-line Growth Drivers : ~- Operating Improvements Drive Accelerated Results Ne. e Transformation Strategy Drives Growth and Maximizes Value Grow & Innovate Eliminate [™* Reduce Waste \ J varity
Slide 51: Forward-Looking Information
TEXTRON Forward-Looking Information Certain statements in this report and other oral and written statements madé by Textron.from time to time are forward-looking statements, including those that discuss strategies, Goats, outlook or other non-historical matters; or project revenues, income, returns
Slide 52: The Power to Grow
The Power to Grow Paris Inves or Brief ni