Slide 1: Q4 2022 Earnings Call Presentation
Q4 2022 Earnings Call Presentation January 25th, 2023 The data in this package should be read in conjunction with the Textron earnings release and accompanying tables.
Slide 2: Forward-Looking Information
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 othe
Slide 3: Key Data – Q4 2022
Key Data – Q4 2022 Q4 2022 Q4 2021 Revenues $ 3.6B $ 3.3B Segment Profit $ 317M $ 310M EPS $ 1.07 $ 0.93 Adjusted EPS N/A $ 0.94 Manufacturing Cash Flow $ 368M $ 298M Before Pension Contributions Pension Contributions $ 13M $ 12M (1) Adjusted EPS and Manufacturing cash flow before pension contributi
Slide 4: Key Data – Full Year 2022
Key Data – Full Year 2022 Full-Year 2022 Full-Year 2021 Revenues $ 12.9B $ 12.4B Segment Profit $ 1,223M $ 1,134M EPS $ 4.01 $ 3.30 Manufacturing Cash Flow $ 1,178M $ 1,149M Before Pension Contributions Pension Contributions $ 49M $ 52M (1) Manufacturing cash flow before pension contributions is a n
Slide 5: Q4 2022 Revenue Growth
Q4 2022 Revenue Growth Organic Revenue Acquisition Organic FX Impact Growth Growth Impact Growth Un(Fav) Before FX Textron Aviation 16.4% - 16.4% - 16.4% Bell (4.9%) - (4.9%) - (4.9%) Textron Systems 0.3% - 0.3% - 0.3% Industrial 16.1% - 16.1% 3.6% 19.7% Textron eAviation 0.2% (100%) - - - Manufactu
Slide 6: Textron Consolidated Net Debt
Textron Consolidated Net Debt ($ amounts in millions) Year-End 2022 Year-End 2021 Cash $ 2,035 $ 2,117 Finance Group Debt $ 375 $ 582 TXT Mfg. Group Debt 3,182 3,185 Total Debt $ 3,557 $ 3,767 Net Debt $ 1,522 $ 1,650 Textron Inc. Q4 2022 Earnings Call Presentation; January 25, 2023 6
Slide 7: Finance Segment Key Statistics
Finance Segment Key Statistics Q4 2022 Q4 2021 60+ Delinquency $ 1M $ 1M Non-accrual $ 46M $ 94M Finance Receivables $ 587M $ 630M Shareholders’ Equity $ 208M $ 175M Textron Inc. Q4 2022 Earnings Call Presentation; January 25, 2023 7
Slide 8: 2023 Financial Reporting Change
2023 Financial Reporting Change Beginning in 2023, we will report earnings per share on an adjusted basis to exclude the following non-cash items: ‒ LIFO Inventory Provision ‒ Intangible Asset Amortization Also starting in 2023, we will change how we measure our segment operating results to exclude
Slide 9: Outlook – Full Year 2023
Outlook – Full Year 2023 2023 Outlook Adjusted Earnings Per Share (Non-GAAP) $ 5.00 - $ 5.20 Manufacturing Cash Flow $ 0.9B - $ 1.0B Before Pension Contributions (1) Adjusted Earnings Per share and Manufacturing cash flow before pension contributions are non-GAAP measures that are defined and reconc
Slide 10: EPS GAAP to Non-GAAP Reconciliation
EPS GAAP to Non-GAAP Reconciliation 2023 Outlook 2022 Actual Earnings Per Share - GAAP $ 4.40 - $ 4.60 $ 4.01 LIFO Inventory Provision 0.47 0.25 Intangible Asset Amortization 0.13 0.19 Adjusted Earnings Per Share - Non-GAAP $ 5.00 - $ 5.20 $ 4.45 Note: Adjusted earnings per share is a non-GAAP finan
Slide 11: Segment Outlook – Full Year 2023
Segment Outlook – Full Year 2023 2023E 2022 Recast Segment Segment Segment Revenue Profitability Revenue Profitability Textron Aviation ~$ 5.7B ~12.0% - 13.0% $ 5.1B 11.0% Bell ~$ 3.3B ~8.25% - 9.25% $ 3.1B 9.1% Textron Systems ~$ 1.25B ~10.75% - 11.75% $ 1.2B 11.3% Industrial ~$ 3.6B ~5.0% - 6.0% $
Slide 12: Outlook – Full Year 2023
Outlook – Full Year 2023 Recast ($ amounts in millions) 2023E 2022 Corporate Expenses & Other ~$ 150 $ 143 Interest Expense, net for Manufacturing Group ~$ 90 $ 94 LIFO Inventory Provision ~$ 130 $ 71 Intangible Asset Amortization ~$ 35 $ 52 Non-service Pension Income ~$ 235 $ 240 Income Tax Rate (f
Slide 13: Outlook – Full Year 2023
Outlook – Full Year 2023 ($ amounts in millions) 2023E 2022 Research & Development ~$ 585 $ 601 % of Mfg Revenues 4.2% 4.7% CapEx ~$ 425 $ 354 Depreciation ~$ 375 $ 340 Textron Inc. Q4 2022 Earnings Call Presentation; January 25, 2023 13
Slide 14: Pension Outlook – Full Year 2023
Pension Outlook – Full Year 2023 2023E 2022 Discount Rates – U.S. Plans 5.55% 3.05% Assumed Long-Term Rate of 7.25% 7.25% Return Service Pension Cost/(Income) (1) ~$ 80M $ 121M Non-Service Pension Cost/(Income) ~ (235M) (240M) Total Pension Cost/(Income) ~$ (155M) $ (119M) Pension Contributions ~$ 5
Slide 15: Full Year 2022 Recast to New Reporting Format
Full Year 2022 Recast to New Reporting Format Non Historical LIFO Intangible Service Recast Segment FY 2022 Segment Inventory Asset Pension Segment Profit ($ amounts in millions) Profit Provision Amortization Income Profit Margin Textron Aviation $ 584 $ 41 $ 30 $ (95) $ 560 11.0% Bell 317 18 - (53)
Slide 16: Full Year 2022 Recast to New Reporting Format (continued)
Full Year 2022 Recast to New Reporting Format (continued) ($ amounts in millions) Historical 2022 Recast 2022 Segment Profit $ 1,223 $ 1,136 Corporate Expense (113) (143) Interest Expense (94) (94) LIFO Inventory Provision - (71) Intangible Asset Amortization - (52) Non-Service Pension Income - 240
Slide 17: Adjusted EBITDA - Full Year 2022
Adjusted EBITDA - Full Year 2022 Full Year ($ amounts in millions) 2022 Income from Continuing Operations Before Tax $ 1,016 Add: Interest Expense, net 94 Depreciation Expense 340 LIFO Inventory Provision 71 Intangible Asset Amortization 52 Adjusted EBITDA (1) $ 1,573 (1) Adjusted EBITDA is a non-GA
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures. These non-GAAP financial measures exclude certain significant items that may not be indicative of, or a
Slide 19: Appendix
TEXTRON Appendix
Slide 20: Segment Profit Recast – Q1 2022
Segment Profit Recast – Q1 2022 Non Historical LIFO Intangible Service Recast Segment Q1 2022 Segment Inventory Asset Pension Segment Profit ($ amounts in millions) Profit Provision Amortization Income Profit Margin Textron Aviation $ 121 $5 $8 $ (24) $ 110 10.6% Bell 98 6 - (13) 91 10.9% Textron Sy
Slide 21: Segment Profit Recast – Q2 2022
Segment Profit Recast – Q2 2022 Non Historical LIFO Intangible Service Recast Segment Q2 2022 Segment Inventory Asset Pension Segment Profit ($ amounts in millions) Profit Provision Amortization Income Profit Margin Textron Aviation $ 155 $ 11 $7 $ (24) $ 149 11.6% Bell 63 4 - (13) 54 7.9% Textron S
Slide 22: Segment Profit Recast – Q3 2022
Segment Profit Recast – Q3 2022 Non Historical LIFO Intangible Service Recast Segment Q3 2022 Segment Inventory Asset Pension Segment Profit ($ amounts in millions) Profit Provision Amortization Income Profit Margin Textron Aviation $ 139 $8 $8 $ (24) $ 131 11.2% Bell 85 2 - (13) 74 9.8% Textron Sys
Slide 23: Segment Profit Recast – Q4 2022
Segment Profit Recast – Q4 2022 Non Historical LIFO Intangible Service Recast Segment Q4 2022 Segment Inventory Asset Pension Segment Profit ($ amounts in millions) Profit Provision Amortization Income Profit Margin Textron Aviation $ 169 $ 17 $7 $ (23) $ 170 10.7% Bell 71 6 - (14) 63 7.7% Textron S
Slide 24: 2022 Corporate Expense Recast
2022 Corporate Expense Recast ($ amounts in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Historical Corporate Expense & Other $ (44) $ (12) $ (14) $ (43) $ (113) Non-service Pension Income (8) (8) (7) (7) (30) Recast Corporate Expense & Other (1) $ (52) $ (20) $ (21) $ (50) $ (143) (1) Recast 2
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