APICS – LOGISTICS Andy Dean Director, Indirect Procurement & Global Logistics

1. APICS – LOGISTICSAndy DeanDirector, Indirect Procurement & Global Logistics

2. Outline • Introduction / Background • Textron • Logistics within Textron • Keys to Success • Market Stratification • Teach your people some basic things • Questions

3. Outline • Introduction / Background • Textron • Logistics within Textron • Keys to Success • Market Stratification • Teach your people some basic things • Questions

4. Andy DeanDirector, ICoE and Global Logistics Team Location: Global • Background • Mechanical Engineer / MBA/CPIM • 30 years experience • General Motors • Delphi • Engineering / Packaging / Logistics / Production Control / Warehousing / Operations Management / Supply Chain • Director of Strategic Procurement – ICoE and Logistics • Responsible for procuring all indirect material, services and logistics for ALL business units within Textron • Team Locations • Wichita, KS • Troy, MI • Fort Worth, TX • BASF • Textron • Mirabel, QC • Chihuahua, MX • Bonn, DE • Liversedge, UK • Tokyo, JP

5. Outline • Introduction / Background • Textron • Logistics within Textron • Keys to Success • Market Stratification • Teach your people some basic things • Questions

6. Textron Corporate Overview

7. Quick Facts • Headquartered In Providence, RI • Revenue: $13.42 B • Approximately 35,000 Employees • Fortune 500 Ranking: 209 • NYSE: TXT • Company website: www.textron.com

8. Textron Segments Textron Systems Industrial Bell Helicopter Finance Textron Aviation 36% 26% 11% 26% 1% Cessna Aircraft Beechcraft Hawker Bell Helicopter Textron Systems Lycoming TRU Simulation + Training Textron Airborne Solutions Textron Specialized Vehicles Textron Tools & Test Kautex Textron Financial 2015 Revenue $13.4B

9. Primary Industries Defense Finance Aviation Industrial

10. Textron Aviation$4.8 Billion (2015 Revenue) 71% Aircraft Sales 29% Aftermarket Broader selection of products, larger service footprint

11. Textron Aviation Broadest product line in general aviation

12. Industrial$3.5 Billion (2015 Revenue) Kautex $2,078 million Textron Tools & Test $445 million Textron Specialized Vehicles $1,021 million Focused on new products, cost productivity and geographic expansion

13. Marine Textron Systems$1.5 Billion (2015 Revenue) Weapon & Sensor Systems Marine & Land Systems Simulation, Training & Other Unmanned Systems 26% 17% 45% 12% Protection Systems Electronic Systems Unmanned Systems Tactical Wheeled Vehicles TRU Simulation + Training CUSV Missile & Space Systems Lycoming Engines Geospatial Solutions & Advanced Information Solutions Intelligent Networked Ground Systems Command & Control Technologies Expand global presence and customer base worldwide Air-to-Ground Weapons Unattended Ground Sensors

14. Bell Helicopter$3.5 Billion (2015 Revenues) Commercial Military ~$2.0 Billion; 58% ~$1.5 Billion; 42% AH-1Z - Viper UH-1Y - Venom V-22 – Osprey 429 Huey II 206L4 407 412 Installed Base: ~10,000 Installed Base: ~3,000 Great platforms with future growth opportunities

15. Textron Financial1% of 2015 Textron Revenues • YE15 • Finance receivables: $1.1B • Shareholder’s Equity: $175M Supporting purchases of Textron-manufactured products

16. Commitment to Future Growth Scorpion Hybrid ISR/Strike Aircraft Cessna Citation Latitude, Longitude & Hemisphere Bell 525 Relentless Able Aerospace Investing for future growth organically and through acquisitions

17. Textron’s Powerful Brands

18. Outline • Introduction / Background • Textron • Logistics within Textron • Keys to Success • Market Stratification • Teach your people some basic things • Questions

19. Global Presence

21. Leverage

22. Vendors and Textron Global Logistics Asset Planning (Modeling & Design) - IT Planning & Integration Data Warehousing Logistics Provides Key Support to Business Units Operations Throughout the Manufacturing Process

23. Leverage on many levels • Global • Regional • Mode • Direction • Service Levels • Equipment • Warehousing/Cross Docks • Data Driven • Must still provide for special needs of the business unit

28. Outline • Introduction / Background • Textron • Logistics within Textron • Keys to Success • Market Stratification • Teach your people some basic things • Questions

29. Keys to Success • Contract • Be Data Driven – Rating Service • Non-Related / Independent • Generates the needed Data • Forces Automation and efficiency • Duplicate check • Rating • Payment • Analysis • Fuel Escalation • Tariff • Technology Roadmap

30. Company Confidential Technology Roadmap - EXAMPLE World Class Performance Supply Chain Integration Exception Management E-Sourcing Business Intelligence • Complete • Systems • Integration • Operations • - Procurement • Transportation • Management • / Engineering Tactical Process Automation Automation Of The Bid Process VALUE Reporting Electronic Entry Metric Automation Invoicing Broker Automation Tender Automation Automatic Flow Mobile Apps Technology

31. Outline • Introduction / Background • Textron • Logistics within Textron • Keys to Success • Market Stratification • Teach your people some basic things • Questions

32. Market Stratification • Cost Drivers By Service • Know the Service and how things work • Know where changes make a difference to supplier’s costs / revenue • Know how to tap into the supplier’s strengths • Experience helps • Assessorials • Intermodal • Use of Brokers

33. Outline • Introduction / Background • Textron • Logistics within Textron • Keys to Success • Market Stratification • Teach your people some basic things • Questions

34. Teach your folks some basic things • Ship through a Dock • Trained in which Service to use • DOT – HazMat – FAA • “Planes, Trains and Automobiles” • Hawaii/Puerto Rico • Alaska • 150 pounds • Parcel vs. LTL • Packaging requirements • FedEx Zones • LTL / Railcars • Express / Trucks

35. FedEx Ground Service Map - 67215 • Ground Transit vs. Express

36. Textron’s Powerful Brands Questions?