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Filed by United Technologies Corporation
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: Raytheon Company
Commission File No. 001-13699
Date: July 23, 2019
2Q 2019 Earnings Conference Call July 23, 2019
Note: All results and expectations in this presentation reflect continuing operations unless otherwise noted.
Thiscommunicationcontainsstatementswhich,totheextenttheyarenotstatementsofhistoricalorpresentfact,constitute“forward-lookingstatements”underthesecuritieslaws.Fromtimetotime,oralorwrittenforward-lookingstatementsmayalsobeincludedinotherinformationreleasedtothepublic.Theseforward-lookingstatementsareintendedtoprovidemanagement’scurrentexpectationsorplansforourfutureoperatingandfinancialperformance,basedonassumptionscurrentlybelievedtobevalid.Forward-lookingstatementscanbeidentifiedbytheuseofwordssuchas“believe,”“expect,”“expectations,”“plans,”“strategy,”“prospects,”“estimate,”“project,”“target,”“anticipate,”“will,”“should,”“see,”“guidance,”“outlook,”“confident,”“ontrack”andotherwordsofsimilarmeaning.Forward-lookingstatementsmayinclude,amongotherthings,statementsrelatingtofuturesales,earnings,cashflow,resultsofoperations,usesofcash,sharerepurchases,taxrates,R&Dspend,othermeasuresoffinancialperformance,potentialfutureplans,strategiesortransactions,creditratingsandnetindebtedness,otheranticipatedbenefitsoftheRockwellCollinsacquisition,theproposedmergerwithRaytheonCompany(“Raytheon”)orthespin-offsbyUnitedTechnologiesofOtisandCarrierintoseparateindependentcompanies(the“separationtransactions”),includingestimatedsynergiesandcustomercostsavingsresultingfromtheproposedmergerwithRaytheonCompany,theexpectedtimingofcompletionoftheproposedmergerandtheseparationtransactions,estimatedcostsassociatedwithsuchtransactionsandotherstatementsthatarenothistoricalfacts.Allforward-lookingstatementsinvolverisks,uncertaintiesandotherfactorsthatmaycauseactualresultstodiffermateriallyfromthoseexpressedorimpliedintheforward-lookingstatements.Forthosestatements,weclaimtheprotectionofthesafeharborforforward-lookingstatementscontainedintheU.S.PrivateSecuritiesLitigationReformActof1995.Suchrisks,uncertaintiesandotherfactorsinclude,withoutlimitation:(1)theeffectofeconomicconditionsintheindustriesandmarketsinwhichUnitedTechnologiesandRaytheonCompanyoperateintheU.S.andgloballyandanychangestherein,includingfinancialmarketconditions,fluctuationsincommodityprices,interestratesandforeigncurrencyexchangerates,levelsofendmarketdemandinconstructionandinboththecommercialanddefensesegmentsoftheaerospaceindustry,levelsofairtravel,financialconditionofcommercialairlines,theimpactofweatherconditionsandnaturaldisasters,thefinancialconditionofourcustomersandsuppliers,andtherisksassociatedwithU.S.governmentsales(includingchangesorshiftsindefensespendingduetobudgetaryconstraints,spendingcutsresultingfromsequestration,agovernmentshutdown,orotherwise,anduncertainfundingofprograms);(2)challengesinthedevelopment,production,delivery,support,performanceandrealizationoftheanticipatedbenefits(includingourexpectedreturnsundercustomercontracts)ofadvancedtechnologiesandnewproductsandservices;(3)thescope,nature,impactortimingoftheproposedmergerwithRaytheonandtheseparationtransactionsandothermerger,acquisitionanddivestitureactivity,includingamongotherthingstheintegrationoforwithotherbusinessesandrealizationofsynergiesandopportunitiesforgrowthandinnovationandincurrenceofrelatedcostsandexpenses;(4)futurelevelsofindebtedness,includingindebtednessthatmaybeincurredinconnectionwiththeproposedmergerwithRaytheonandtheseparationtransactions,andcapitalspendingandresearchanddevelopmentspending;(5)futureavailabilityofcreditandfactorsthatmayaffectsuchavailability,includingcreditmarketconditionsandourcapitalstructure;(6)thetimingandscopeoffuturerepurchasesbythecompaniesoftheirrespectivecommonstock,whichmaybesuspendedatanytimeduetovariousfactors,includingmarketconditionsandthelevelofotherinvestingactivitiesandusesofcash,includinginconnectionwiththeproposedmergerwithRaytheon;(7)delaysanddisruptionindeliveryofmaterialsandservicesfromsuppliers;(8)companyandcustomer-directedcostreductioneffortsandrestructuringcostsandsavingsandotherconsequencesthereof(includingthepotentialterminationofU.S.governmentcontractsandperformanceunderundefinitizedcontractawardsandthepotentialinabilitytorecoverterminationcosts);(9)newbusinessandinvestmentopportunities;(10)theabilitytorealizetheintendedbenefitsoforganizationalchanges;(11)theanticipatedbenefitsofdiversificationandbalanceofoperationsacrossproductlines,regionsandindustries;(12)theoutcomeoflegalproceedings,investigationsandothercontingencies;(13)pensionplanassumptionsandfuturecontributions;(14)theimpactofthenegotiationofcollectivebargainingagreementsandlabordisputes;(15)theeffectofchangesinpoliticalconditionsintheU.S.andothercountriesinwhichUnitedTechnologies,Raytheonandthebusinessesofeachoperate,includingtheeffectofchangesinU.S.tradepoliciesortheU.K.’spendingwithdrawalfromtheEuropeanUnion,ongeneralmarketconditions,globaltradepoliciesandcurrencyexchangeratesintheneartermandbeyond;(16)theeffectofchangesintax(includingU.S.taxreformenactedonDecember22,2017,whichiscommonlyreferredtoastheTaxCutsandJobsActof2017),environmental,regulatoryandotherlawsandregulations(including,amongotherthings,exportandimportrequirementssuchastheInternationalTrafficinArmsRegulationsandtheExportAdministrationRegulations,anti-briberyandanti-corruptionrequirements,includingtheForeignCorruptPracticesAct,industrialcooperationagreementobligations,andprocurementandotherregulations)intheU.S.andothercountriesinwhichUnitedTechnologies,Raytheonandthebusinessesofeachoperate;(17)negativeeffectsoftheannouncementorpendencyoftheproposedmergerortheseparationtransactionsonthemarketpriceofUnitedTechnologies’and/orRaytheon’srespectivecommonstockand/orontheirrespectivefinancialperformance;(18)theabilityofthepartiestoreceivetherequiredregulatoryapprovalsfortheproposedmerger(andtheriskthatsuchapprovalsmayresultintheimpositionofconditionsthatcouldadverselyaffectthecombinedcompanyortheexpectedbenefitsofthetransaction)andapprovalsofUnitedTechnologies’shareownersandRaytheon’sshareholdersandtosatisfytheotherconditionstotheclosingofthemergeronatimelybasisoratall;(19)theoccurrenceofeventsthatmaygiverisetoarightofUnitedTechnologiesorRaytheonorbothtoterminatethemergeragreement;(20)risksrelatingtothevalueoftheUnitedTechnologies’sharestobeissuedintheproposedmergerwithRaytheon,significanttransactioncostsand/orunknownliabilities;(21)thepossibilitythattheanticipatedbenefitsfromtheproposedmergerwithRaytheoncannotberealizedinfulloratallormaytakelongertorealizethanexpected,includingrisksassociatedwiththirdpartycontractscontainingconsentand/orotherprovisionsthatmaybetriggeredbytheproposedtransaction;(22)risksassociatedwithtransaction-relatedlitigation;(23)thepossibilitythatcostsordifficultiesrelatedtotheintegrationofUnitedTechnologies’andRaytheon’soperationswillbegreaterthanexpected;(24)risksrelatingtocompletedmerger,acquisitionanddivestitureactivity,includingUnitedTechnologies’integrationofRockwellCollins,includingtheriskthattheintegrationmaybemoredifficult,time-consumingorcostlythanexpectedormaynotresultintheachievementofestimatedsynergieswithinthecontemplatedtimeframeoratall;(25)theabilityofeachofUnitedTechnologies,Raytheonandthecompaniesresultingfromtheseparationtransactionsandthecombinedcompanytoretainandhirekeypersonnel;(26)theexpectedbenefitsandtimingoftheseparationtransactions,andtheriskthatconditionstotheseparationtransactionswillnotbesatisfiedand/orthattheseparationtransactionswillnotbecompletedwithintheexpectedtimeframe,ontheexpectedtermsoratall;(27)theintendedqualificationof(i)themergerasatax-freereorganizationand(ii)theseparationtransactionsastax-freetoUnitedTechnologiesandUnitedTechnologies’shareowners,ineachcase,forU.S.federalincometaxpurposes;(28)thepossibilitythatanyopinions,consents,approvalsorrulingsrequiredinconnectionwiththeseparationtransactionswillnotbereceivedorobtainedwithintheexpectedtimeframe,ontheexpectedtermsoratall;(29)expectedfinancingtransactionsundertakeninconnectionwiththeproposedmergerwithRaytheonandtheseparationtransactionsandrisksassociatedwithadditionalindebtedness;(30)theriskthatdissynergycosts,costsofrestructuringtransactionsandothercostsincurredinconnectionwiththeseparationtransactionswillexceedUnitedTechnologies’estimates;and(31)theimpactoftheproposedmergerandtheseparationtransactionsontherespectivebusinessesofUnitedTechnologiesandRaytheonandtheriskthattheseparationtransactionsmaybemoredifficult,time-consumingorcostlythanexpected,includingtheimpactonUnitedTechnologies’resources,systems,proceduresandcontrols,diversionofitsmanagement’sattentionandtheimpactonrelationshipswithcustomers,suppliers,employeesandotherbusinesscounterparties.Therecanbenoassurancethattheproposedmerger,theseparationtransactionsoranyothertransactiondescribedabovewillinfactbeconsummatedinthemannerdescribedoratall.Foradditionalinformationonidentifyingfactorsthatmaycauseactualresultstovarymateriallyfromthosestatedinforward-lookingstatements,seethereportsofUnitedTechnologiesandRaytheononForms10-K,10-Qand8-KfiledwithorfurnishedtotheSecuritiesandExchangeCommission(the“SEC”)fromtimetotime.Anyforward-lookingstatementspeaksonlyasofthedateonwhichitismade,andUnitedTechnologiesassumesnoobligationtoupdateorrevisesuchstatement,whetherasaresultofnewinformation,futureeventsorotherwise,exceptasrequiredbyapplicablelaw.
Use and Definitions of Non-GAAP Financial Measures United Technologies Corporation reports its financial results in accordance
with accounting principles generally accepted in the United States ("GAAP").We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented
provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness
of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.Adjusted net sales, organic
sales, adjusted operating profit, adjusted net income, adjusted earnings per share (“EPS”), and the adjusted effective tax rate are non-GAAP financial measures. Adjusted net sales represents consolidated net sales from continuing operations
(a GAAP measure), excluding significant items of a non-recurring and/or nonoperational nature (hereinafter referred to as “other significant items”). Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of
foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items. Adjusted operating profit represents income from continuing operations (a GAAP measure), excluding restructuring
costs and other significant items. Adjusted net income represents net income from continuing operations (a GAAP measure), excluding restructuring costs and other significant items. Adjusted EPS represents diluted earnings per share from
continuing operations (a GAAP measure), excluding restructuring costs and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs and other significant items.
For the business segments, when applicable, adjustments of net sales, operating profit and margins similarly reflect continuing operations, excluding restructuring and other significant items. Management believes that the non-GAAP measures
just mentioned are useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less
capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing UTC's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of UTC's
common stock and distribution of earnings to shareholders.A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional
information as to the items and amounts that have been excluded from the adjusted measures.When we provide our expectation for adjusted EPS, adjusted operating profit, adjusted effective tax rate, organic sales and free cash flow on a
forward-looking basis, a reconciliation of the differences between the non- GAAP expectations and the corresponding GAAP measures (expected diluted EPS from continuing operations, operating profit, the effective tax rate, sales and expected
cash flow from operations) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period,
such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable
significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Important Information about the Proposed Merger AdditionalInformation In connection with the proposed merger, United Technologies has filed a
registration statement on Form S-4, which includes a preliminary prospectus of United Technologies and a preliminary joint proxy statement of United Technologies and Raytheon Company (the “joint proxy statement/prospectus”), and each party will
file other documents regarding the proposed merger with the SEC. In addition, in connection with the separation transactions, subsidiaries of United Technologies will file registration statements on Form 10 or S-1. INVESTORS AND SECURITY HOLDERS
ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSETHEY WILL CONTAIN IMPORTANT INFORMATION. A definitive joint proxy statement/prospectus will be sent to
United Technologies’ shareowners and Raytheon Company’s shareholders. Investors and security holders will be able to obtain the registration statements and the joint proxy statement/prospectus free of charge from the SEC’s website or from United
Technologies or Raytheon Company. The documents filed by United Technologies with the SEC may be obtained free of charge at United Technologies’ website at www.utc.com or at the SEC’s website at www.sec.gov. These documents may also be obtained
free of charge from United Technologies by requesting them by mail at UTC Corporate Secretary, 10 Farm Springs Road, Farmington,CT, 06032, by telephone at 1-860-728-7870 or by email at corpsec@corphq.utc.com. The documents filed by Raytheon
Company with the SEC may be obtained free of charge at Raytheon Company’s website at www.raytheon.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from Raytheon Company by requesting them by mail at
RaytheonCompany, Investor Relations, 870 Winter Street, Waltham, MA, 02541, by telephone at 1-781-522-5123 or by email at invest@raytheon.com. Participants in the Solicitation United Technologies and Raytheon Company and their respective
directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. Information about United Technologies’ directors and executive
officers is available in United Technologies’ proxy statement dated March 18, 2019, for its 2019 Annual Meeting of Shareowners. Information about Raytheon Company’s directors and executive officers is available in Raytheon Company’s proxy
statement dated April 16, 2019, for its 2019 Annual Meeting of Shareholders. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will
be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding thetransaction when they become available. Investors should read the joint proxy statement/prospectus carefully when it becomes
available before making any voting or investment decisions. You may obtain free copies of these documents from United Technologies or Raytheon Company as indicated above. No Offer or Solicitation This communication shall not constitute an offer
to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction. No offeringofsecurities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
Appendix –UTC / Raytheon Supplemental
Strategic Rationale Supports Long-Term Value Creation Arial 20 pt. Arial 20 pt. Arial 16 pt. Arial 16 pt. Arial 16 pt. Ability to deliver
enhanced value to customers through cost-effective solutions Creates a premier systems provider positioned to define the future of A&D Highly complementary technology offerings and world-class engineering teams Balanced and diversified
A&D portfolio that is resilient across business cycles $1B+ gross cost synergies with additional technology-driven revenue synergies Attractive financial profile with strong cash flow generation and balance sheet 26
Transformation into Leading A&D Systems Provider For more information, see UTC’s registration statement on Form S-4, filed
with the SEC on July 17, 2019 Note: Dates reflect transaction announcement. 1Pro Forma Aero revenue includes UTAS / Collins Aerospace and Pratt & Whitney. Net of intercompany eliminations. 2Reflects gross run-rate cost synergies.
Goodrich reflects realized cost synergies. Collins and Raytheon reflect latest expectations for cost synergies. Raytheon estimated net run-rate cost synergies is $500M+. Pending Three-Way Separation EV: ~$132B 26-Nov-2018 N/A ~$43B 100%
Transformation into leading platform-agnostic Aerospace & Defense provider Run-Rate Cost Synergies2 UTC A&D PF Revenue1 Rationale Complementary products / systems across the airframe Substantial financial synergies Reduce
platform-specific A&D exposure Increase focus on providing high-technology systems Added world-class electronics and software capabilities Substantial financial synergies Create leading A&D systems provider–scale, breadth and
innovation Increase high-tech systems focus Material synergy potential Create focused A&D and commercial platforms Positioned to serve high-growth areas of commercial aerospace and defense industries UTC Revenue % A&D1
Acquisition of EV: ~$18B 21-Sep-2011 ~$600M+ ~$34B ~53% Acquisition of EV: ~$31B 04-Sep-2017 $600M+ ~$38B ~58% Sale of EV: ~$9B 20-Jul-2015 N/A ~$27B ~50% Pending Merger with EV: ~$56B 09-Jun-2019 2018 2011 2017 2015 2019 $1,000M+
~$74B 100% 27
Merger Creates Significant Value for UTC Shareowners *See appendix for additional information regarding this non-GAAP
financial measure. For more information, see UTC’s registration statement on Form S-4, filed with the SEC on July 17, 2019 1Assumes mid-year 2020 close. 2Approximately $600M net one-time cost, subject to USG recoverability to achieve
$500M+ in net annual cost synergies. A merger with Raytheon creates significant value for UTC shareowners through earnings accretion, synergies, and a shareowner-friendly capital return policy Standalone Pro Forma $18B-$20B $4B-$5B
Immediately accretive ~$18B-$20B Return of capital to shareowners over 3 years ~$1B in gross cost synergies by year 4; incremental $0.1B-$0.2B of corporate cost avoidancerelated to the separation Return of Capital to Shareowners Gross
Cost Savings2 3 Years Run-Rate Synergies $350M $325M $175M $150M ~$1B ~$0.5B Gross: Net: IT and Other SG&A Facilities Consolidation Corporate Supply Chain & Procurement Significant Additional Revenue Synergy Opportunities UTC
Aero Standalone Pro Forma RTX 20 –30 cents Adjusted EPS* accretion in 20211 ...and Compelling Capital Return to Shareowners ...with Strong Synergy Upside... EPS Accretion... 28