Slide 1: Q4 2021 Earnings Call Presentation
Q4 2021 Earnings Call Presentation January 27, 2022 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 2021
Key Data – Q4 2021 Q4 2021 Q4 2020 Revenues $3.3B $3.7B Segment Profit $310M $324M EPS $0.93 $1.03 Adjusted EPS* $0.94 $1.06 Manufacturing Cash Flow $298M $467M Before Pension Contributions* Pension Contributions $12M $12M *Adjusted EPS and Manufacturing cash flow before pension contributions are no
Slide 4: Key Data – Full Year 2021
Key Data – Full Year 2021 Full-Year 2021 Full-Year 2020 Revenues $12.4B $11.7B Segment Profit $1,134M $751M EPS $3.30 $1.35 Adjusted EPS* $3.30 $2.07 Manufacturing Cash Flow $1,149M $596M Before Pension Contributions* Pension Contributions $52M $47M *Adjusted EPS and Manufacturing cash flow before p
Slide 5: Textron Consolidated Net Debt
Textron Consolidated Net Debt ($ amounts in millions) Full-Year 2021 Full-Year 2020 Cash $2,117 $2,254 Finance Group Debt 582 662 TXT Mfg. Group Debt 3,185 3,707 Total Debt 3,767 4,369 Net Debt $1,650 $2,115 Textron Inc. Q4 2021 Earnings Call Presentation; January 27, 2022 5
Slide 6: Q4 2021 Revenue Growth
Q4 2021 Revenue Growth Organic Revenue Organic FX Impact Growth Growth Growth Un(Fav) Before FX Textron Aviation (12.9%) (12.9%) - (12.9%) Bell (1.5%) (1.5%) - (1.5%) Textron Systems (12.3%) (12.3%) - (12.3%) Industrial (9.8%) (9.8%) 0.2% (9.6%) Manufacturing (9.4%) (9.4%) 0.1% (9.3%) Finance (15.4%
Slide 7: Finance Segment Key Statistics
Finance Segment Key Statistics Q4 2021 Q3 2021 60+ Delinquency $1M $12M Non-accrual $94M $110M Finance Receivables $630M $621M Shareholders’ Equity $175M $170M Textron Inc. Q4 2021 Earnings Call Presentation; January 27, 2022 7
Slide 8: Segment Outlook – Full Year 2022
Segment Outlook – Full Year 2022 Segment Revenue Profitability Textron Aviation ~$5.5B ~10.0% - 11.0% Bell ~$3.0B ~10.0% - 11.0% Textron Systems ~$1.3B ~13.5% - 14.5% Industrial ~$3.5B ~5.5% - 6.5% Finance ~$40M ~$15M Textron Inc. Q4 2021 Earnings Call Presentation; January 27, 2022 8
Slide 9: Outlook – Full Year 2022
Outlook – Full Year 2022 Earnings Per Share $3.80 - $4.00 Manufacturing Cash Flow $700M - $800M Before Pension Contributions Pension Contributions ~$50M (1) Manufacturing cash flow before pension contributions is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. (2)
Slide 10: Outlook – Full Year 2022
Outlook – Full Year 2022 ($ amounts in millions) 2022E 2021 Corporate Expenses & Other ~$150 $129 Interest Expense, net for ~$120 $124 Manufacturing Group Income Tax Rate (from ~18.0% 14.4% continuing operations) Textron Inc. Q4 2021 Earnings Call Presentation; January 27, 2022 10
Slide 11: Pension Outlook – Full Year 2022
Pension Outlook – Full Year 2022 2022E 2021 Discount Rates – U.S. Plans 3.05% 2.70% Total Pension Cost/(Income) ~($120M) ~($30M) Assumed Long-Term Rate of 7.25% 7.25% Return Pension Contributions ~$50M $52M Textron Inc. Q4 2021 Earnings Call Presentation; January 27, 2022 11
Slide 12: Outlook – Full Year 2022
Outlook – Full Year 2022 ($ amounts in millions) 2022E 2021 Research & Development ~$585 $619 % of Mfg Revenues 4.4% 5.0% CapEx ~$425 $375 Depreciation ~$370 $325 Textron Inc. Q4 2021 Earnings Call Presentation; January 27, 2022 12
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