Industrial and Commercial 53% Military and  GovGLYPH<213>t Funded 47% International 31% U.S. 69% Aircraft Segment 53% Industrial Segment 36% Space Segment 11% Our market diversification began nearly fifty years ago and our international  diversification began more than thirty-five  years ago. Just as investors balance their portfolios of stocks, so do we balance our portfolio of businesses to benefit both the company and its shareholders. Balanced and Diversified Revenues - 2OO3  Cash Flow from Operations Capital Expenditures $26 $24 $27 $28 $27 (dollars in millions) Strong earnings and better working  capital management have resulted in improved cash flow from operations. Cash Flow Conversion $23 1998 1999 2000 2001 2002 2003 $77 $23 $43 $45 $53 $59 One of our strategies for the past nine years has been to vigorously pursue after- market sales for our proprietary products. 1998 1999 2000 2001 2002 2003 Growing Aftermarket Sales in Proprietary Products (dollars in millions) $9O $131 $151 $153 $165 $17O 1998 1999 2000 2001 2002 2003 (dollars in millions) Our ongoing improvement in net earnings is primarily the result of increased sales volume. Other contributing factors include lean initiatives, low cost manufacturing centers, and favorable interest rates. Net Earnings $19 $24 $25 $28 $38 $43 21