P 3 333 PERFORMANCE 333 RELATIONSHIPS 333 SOLUTIONS 333 Meet our commitments to our Customers,  partners and each  other, driving Customer Success. Build positive, solid  relationships with our Customers, partners and each other. Listen, anticipate, respond,  follow-through. Develop and provide superior Customer solutions, working as One Company. technology as a key differentiator. You will see many examples of the company’s technology solutions in this Annual Report. 33 As we build on our strength in technology, we must also align our capa- bilities with the needs of our customers. I believe we have done so. We saw that alignment in Afghanistan and in Operation Iraqi Freedom. Our individual businesses work hard at this. We also have four Strategic Business Areas — Missile Defense; Precision Engagement; Intelligence, Surveillance and Reconnaissance; and Homeland Security — that are designed to facilitate customer solu- tions that cross our businesses and may even extend beyond our company.  33 We understand that to succeed internationally, we must be sensitive to the unique needs of each of our customers — whether for Airborne Stand-off Radar systems and Paveway IV pre- cision-guided bombs in the U.K.; combat control systems for Australian submarines; or solutions to meet evolving defense needs in Japan. 33 RAYTHEON’S VALUES We are a company based on values: People, Integrity, Commitment, Excellence. We’ve talked about the last three. Now for the first: valuing people. That can sound nebulous; after all, who doesn’t value people? But at Raytheon, it has specific meaning. It means treating people with respect and dignity, welcoming diversity and diverse opinions, help- ing our teammates improve their skills, recognizing and rewarding accomplishment and fostering teamwork and collaboration.  33 To me, valuing people starts with a healthy and safe work environment. Since 1998, the company has reduced employee injuries by 78 per- cent. Now that Raytheon has reduced its injury rate to a level that many consider to be “world class,” we are challenging the team to prevent every injury. The goal must be an injury-free workplace, because anything else is unacceptable. 33 I do have a passion for our customers, this company and its people. I believe that if we help our customers succeed, our employees, partners and stockholders will share in our success. I also believe that if we stay focused on what matters, our company will be on a path to greatness.  33 For all of the reasons above — and as illustrated in the pages that follow — at Raytheon,  Customer Success Is Our Mission . Sincerely, February 18, 2004 WILLIAM H. SWANSON Chairman and CEO