Krannert School of Management - Purdue University Scott Singer, Director Global Supply Management

October 5, 2007

1

UTC 2006(US $ billions @AFX)

Revenue: $47.8

Revenue: $10.3Revenue: $13.5 Revenue: $11.1Revenue: $8.2

Revenue: $4.7

2

CarrierAir conditioning & refrigeration

Commercial / residential heating, ventilation & air-conditioning

Commercial & transport refrigeration equipment

3

Hamilton SundstrandControl systemsAerospace 65%

Industrial 25%

Space, Land & Sea 10%

F/A-22 Airbus A380F-35 Joint Strike Fighter 787

CompressorsPower Generation Pump Systems

4

OTISElevators

Elevators

Escalators

Installation, maintenance & repair services

Moving sidewalks

5

Pratt & WhitneyAircraft engines

Large military engines Over 42,000 produced

Small engines (P&W Canada) Over 60,000 produced

Commercial engine business Over 32,000 produced

P&W space propulsion

P&W power systems

F119

PT6

PW4000

Aftermarket servicesSSME

6

SikorskyHelicopters

Black Hawk Sea Hawk

S - 76

U.S. Military

Commercial

333 S - 92

CH-53K

7

UTC Fire & SecurityBusiness segments

Monitoring / Response

Signal monitoring, verification & response:

Intrusion monitoring

Response (armed & keyholding)

Fire monitoring

Elderly monitoring

Security Personnel

Guarding

Mobile patrols

Concierge & Reception personnel

Special event management

Electronic Security

System integration, installation and service:

Intruder alarms

Access control

CCTV / recording

Verex systems

Fire Safety

Manufacturing, installation and service:

Portable suppression

Detection systems

Fixed suppression

Fire safety training

Cash in Transit

Cash processing

Local cash collection

ATM stocking & servicing

Hotel Security

Hotel & Institutional:

Electronic door locks

In-room safes

Room energy management

8

UTC PowerAlternate power solutions

Hydrogen-powered fuel cells for space, commercial, transportation & residential applications

Business Segments

Transportation

FleetVehicles

Automotive

DistributedGeneration

Fuel Cell Microturbine OrganicRankine Cycle

Space

92006 $47.8 billion

Revenue Diversification

3%4%7%

18%

28%

40%

United States

Other

Asia Pacific

Canada

Latin America

Europe

41%

59%

AftermarketOEM

28%

23%22%

10%

10%7%

Otis Pratt &Whitney

CarrierSikorsky

Fire & Security

HamiltonSundstrand

21%

16%

63%CommercialAerospace

Commercial & Industrial

MilitaryAerospace

10*Source: UTC Finance (does not include foreign direct exports)

UTC2006 China Operations

Revenue*: $1,954M

Otis: $1,051MCarrier: $ 420MFire & Security: $ 183MPratt & Whitney: $ 116MHS: $ 150MSikorsky: $ 34M

Manufacturing facilities:

Otis: Tianjin, Dalian, Xian, Hangzhou, Suzhou, Chengdu, Guangzhou

Carrier: Shanghai (4), Qingdao

Fire & Security: Shanghai, Dongguan

Pratt & Whitney: Chengdu, Zhuzhou, Xian

HS: Chengdu, Zhuzhou, Xian

Sikorsky: Shanghai, Jingdezhen

ShanghaiXian

Chengdu

Donnguan

Qingdao

Zhuzhou

Tianjin

Dalian

Suzhou

Hangzhou

Guangzhou

Jingdezhen

11

Revenue Growth2000-2006

-2%

0%

2%

4%

6%

8%

10%

12%

UTX COL ASD ITW GE TYC DOV MMM EMR HON BA TXT

Average = 5.6%

(CAGR, %)

Peer companies adjusted for discontinued operations

12

Earnings Per Share Growth2000-2006

(4)

(2)

0

2

4

6

8

10

12

14

16

UTX COL MMM ITW ASD TXT GE BA EMR DOV HON TYC

(CAGR, %)

Average = 7.2%

Peer companies adjusted for discontinued operations, accounting changes, and significant one time items

13

0

200

400

600

800

1000

1200

1400

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

UTX S&P 500 Peers

PerformanceCumulative shareholder return

(%)

2006 Stock Price Performance:12/31/05 12/29/06 Change

UTX: 55.91 62.52 11.8%DJIA: 10,717.50 12,463.20 16.3%SP500: 1,248.29 1,418.30 13.6%

12/92 - 12/06:UTX: 1244% GE: 612%DJIA: 409%SP500: 323%Peers: 398%

As of market close 12/29/06

14

275 Factories

75% Buy – 25% Make

62,000 Employees

UTC Operations

Non-product

69%

Product31%

Product67%

Non-product

33%

$24 BillionSupply Chain

100,000+Suppliers

15

Sikorsky VP

Operations

P&WCVP

Operations

P&WVP

Operations

HSVP

Operations

SikorskyVP

Supply Management

P&WCVP

Supply Management

P&W VP

Supply Management

DirectorUTC Aerospace

Supply Management

HSVP

Supply Management

VP UTC Operations

CEO

OtisVP

Supply Management

CarrierVP

Supply Management

CarrierVP

Operations

OtisVP

Operations

Scott SingerUTC Global

SupplyManagement

F&SVP

Supply Management

F&SVP

Operations

UTC Operations Organization

DirectorGeneral

ProcurementServices, US

DirectorGeneral

ProcurementFactory Services,

US

ManagerGeneral

ProcurementServices, AP

ManagerCommercial

Metals

DirectorGeneral

ProcurementServices, EMEA

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16

UTC Operations

Operations Transformation: This is Momentum

Ops

Tra

nsfo

rmat

ion

is o

ur S

trat

egy

Strategies• Design for Manufacturing

• Strategic Sourcing

• Lean

•Talent Development

Unm

atched EH&

S Performance –

Safety 1st

One Team, One Company, One Voice

Results• Create & Deliver Customer Value

• Accelerate Operating Performance

• Double Inventory Turns

• World-Class Talent

17

Key principles:• Customer focused• Process oriented• Data driven decision making

Achieving Competitive ExcellenceACE

18

“The best companies are the best collaborators…”

Supply Chain Management

- Thomas Friedman, “The World Is Flat”

Supply Management drives collaboration!

19

UTC Supply ManagementKey Focus Areas

Talent development

Risk Management

Emerging Markets

Logistics

Digitization

Supplier Development2006

20

Operations Leadership Program

1st Graduating Class

China Launch

Key Facts

Global Program

All UTC Divisions

2 Year Program

3 Rotations

Mfg, SCM, Quality

Recruiting for Cohort 4!