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
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
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
OP
ER
ATIO
NS
C
OU
NC
IL
SU
PP
LY
MA
NA
GE
ME
NT
CO
UN
CIL
CO
RP
OR
ATE
S
UP
PLY
M
AN
AG
EM
EN
T
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!