Krannert School of Management - Purdue University Scott Singer, Director Global Supply Management October 5, 2007

Transcription

1 Krannert School of Management - Purdue University Scott Singer, Director Global Supply Management October 5, 2007

2 1 UTC 2006 (US $ Revenue: $47.8 Revenue: $10.3 Revenue: $13.5 Revenue: $11.1 Revenue: $8.2 Revenue: $4.7

3 2 Carrier Air conditioning & refrigeration Commercial / residential heating, ventilation & air-conditioning Commercial & transport refrigeration equipment

4 3 Hamilton Sundstrand Control systems Aerospace 65% F/A-22 Industrial 25% F-35 Joint Strike Fighter Airbus A Power Generation Compressors Space, Land & Sea 10% Pump Systems

5 4 OTIS Elevators Elevators Escalators Installation, maintenance & repair services Moving sidewalks

6 Pratt & Whitney Aircraft engines Large military engines Over 42,000 produced Small engines (P&W Canada) Over 60,000 produced Commercial engine business Over 32,000 produced F119 PT6 PW4000 P&W space propulsion P&W power systems Aftermarket services SSME 5

7 Sikorsky Helicopters U.S. Military Black Hawk Sea Hawk CH-53K Commercial S S

8 7 UTC Fire & Security Business segments Fire Safety Electronic Security Monitoring / Response Security Personnel Cash in Transit Hotel Security Manufacturing, installation and service: Portable suppression Detection systems Fixed suppression Fire safety training System integration, installation and service: Intruder alarms Access control CCTV / recording Verex systems Signal monitoring, verification & response: Intrusion monitoring Response (armed & keyholding) Fire monitoring Elderly monitoring Guarding Mobile patrols Concierge & Reception personnel Special event management Cash processing Local cash collection ATM stocking & servicing Hotel & Institutional: Electronic door locks In-room safes Room energy management

9 8 UTC Power Alternate power solutions Hydrogen-powered fuel cells for space, commercial, transportation & residential applications Business Segments Distributed Generation Transportation Fuel Cell Microturbine Organic Rankine Cycle Fleet Vehicles Space Automotive

10 Revenue Diversification Hamilton Sundstrand Fire & Security 10% 10% Sikorsky 7% 28% Carrier Asia Pacific Canada Latin America 18% 7% 4% 3% Other 40% United States 22% 23% 28% Otis Pratt & Whitney Europe Military Aerospace 16% Commercial & Industrial Aftermarket OEM 41% Commercial Aerospace 21% 63% 59% 2006 $47.8 billion 9

11 UTC 2006 China Operations Revenue*: $1,954M Xian Chengdu Dalian Tianjin Qingdao Shanghai Jingdezhen Hangzhou Suzhou Zhuzhou Guangzhou Donnguan Otis: $1,051M Carrier: $ 420M Fire & Security: $ 183M Pratt & Whitney: $ 116M HS: $ 150M Sikorsky: $ 34M Manufacturing facilities: Otis: Carrier: Tianjin, Dalian, Xian, Hangzhou, Suzhou, Chengdu, Guangzhou Shanghai (4), Qingdao Fire & Security: Shanghai, Dongguan Pratt & Whitney: Chengdu, Zhuzhou, Xian HS: Chengdu, Zhuzhou, Xian *Source: UTC Finance (does not include foreign direct exports) Sikorsky: Shanghai, Jingdezhen 10

12 Revenue Growth % (CAGR, %) 10% 8% 6% Average = 5.6% 4% 2% 0% -2% UTX COL ASD ITW GE TYC DOV MMM EMR HON BA TXT Peer companies adjusted for discontinued operations 11

13 Earnings Per Share Growth (CAGR, %) Average = 7.2% (2) (4) UTX COL MMM ITW ASD TXT GE BA EMR DOV HON TYC Peer companies adjusted for discontinued operations, accounting changes, and significant one time items 12

14 Performance Cumulative shareholder return (%) UTX S&P 500 Peers 12/92-12/06: UTX: 1244% GE: 612% DJIA: 409% SP500: 323% Peers: 398% Stock Price Performance: 12/31/05 12/29/06 Change UTX: % DJIA: 10, , % SP500: 1, , % As of market close 12/29/06 13

15 14 UTC Operations Nonproduct 33% Product 67% Nonproduct 69% Product 31% $24 Billion Supply Chain 100,000+ Suppliers 275 Factories 75% Buy 25% Make 62,000 Employees

16 15 UTC Operations Organization CEO OPERATIONS COUNCIL Sikorsky Operations P&WC Operations P&W Operations UTC Operations HS Operations Carrier Operations Otis Operations F&S Operations SUPPLY MANAGEMENT COUNCIL Sikorsky Supply Management P&WC Supply Management P&W Supply Management Scott Singer UTC Global Supply Management HS Supply Management Carrier Supply Management Otis Supply Management F&S Supply Management CORPORATE SUPPLY MANAGEMENT Director UTC Aerospace Supply Management Director General Procurement Factory Services, US Director General Procurement Services, US Director General Procurement Services, EMEA Manager General Procurement Services, AP Manager Commercial Metals

17 UTC Operations Ops Transformation is our Strategy Operations Transformation: This is Momentum Strategies Results Design for Manufacturing Create & Deliver Customer Value Strategic Sourcing Accelerate Operating Performance Lean Double Inventory Turns Talent Development World-Class Talent One Team, One Company, One Voice Unmatched EH&S Performance Safety 1st 16

18 Achieving Competitive Excellence ACE Key principles: Customer focused Process oriented Data driven decision making 17

19 18 Supply Chain Management The best companies are the best collaborators - Thomas Friedman, The World Is Flat Supply Management drives collaboration!

20 19 UTC Supply Management Key Focus Areas Talent development Risk Management Emerging Markets Logistics Digitization Supplier Development 2006

21 Operations Leadership Program Key Facts Global Program 1st Graduating Class All UTC Divisions 2 Year Program 3 Rotations Mfg, SCM, Quality Recruiting for Cohort 4! China Launch 20

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