Economic Summit 2003 Outlook Vice President Pratt & Whitney Military Engines Business Development & International Programs January 3, 2003 Hartford Hilton.

Economic Summit 2003 OutlookEconomic Summit 2003 Outlook

Vice PresidentPratt & Whitney Military Engines

Business Development & International Programs

January 3, 2003Hartford Hilton

Lloyd (Fig) Newton

UTC CorporationUTC Corporation

77 Years of History77 Years of History

Pratt & Whitney: Generations of PowerPratt & Whitney: Generations of Power

Military

Commercial

Space

The Power of One

Aerospace Employment in ConnecticutAerospace Employment in Connecticut

50,000

25,000

1996 1997 1998 1999 2000 2001

0

Aerospace Wages in ConnecticutAerospace Wages in Connecticut

CONNECTICUT AVERAGE

WAGE

AEROSPACE&

AVIATION

$60,000

$30,000

$0

$45,000

$61,000

Aerospace Employment Top 10Aerospace Employment Top 10

Aerospace Employment GrowthAerospace Employment Growth

Defense SpendingDefense Spending

*President submitted to Congress

0

50

100

150

200

250

300

350

400

FY2000 FY2001 FY2002 FY2003 FY2004

$267$290

$318

$355

$378*Billions of Dollars

Effects on P&WEffects on P&W

F100 —F-15/F-16 Fighters F117 for C-17—solid future

F117—C-17 Cargo Transport F119 for F/A-22 Raptor—operational in 2 years

J52—A-6 Electronic Warfare F135 for JSF—solid R&D, P&W leadership, milestones

TF33—B-52, KC-135 Bomber and Tanker

F100 for F-15/F-16—continues to be important as F/A-22 and JSF come on line

Today The Future

Global Focus: Key to our FutureGlobal Focus: Key to our Future

Thailand Indonesia Taiwan Portugal Jordan

Norway DenmarkNetherlandsBelgiumUnited States

Venezuela

Pakistan

Egypt

Saudi Arabia

GreeceSingapore

Japan

Korea

Israel

Australia

Great Britain

• F-15 Customers

• F-16 Customers

• A-4 Customers

• C-17 Customers

• F-111 Customers

Italy

• F-14 Customers • EA-6B Customers

Argentina

Business Outlook—ManufacturingBusiness Outlook—Manufacturing

P&W Turbine Blades. . .Amazing FactsP&W Turbine Blades. . .Amazing Facts

Near-SonicVelocityAir Flow

6+ Years

400 hp Per Blade 40,000 lbs. Tension

>1000°FOver Metal

Melt Temperature

Pratt & Whitney Here Today. . .Here to Stay

Pratt & Whitney Here Today. . .Here to Stay