777 P 2 VISION 333 STRATEGY 333 TRIBUTE TO DAN BURNHAM Be the most admired defense and aerospace systems supplier through world-class people and technology. Achieve above-market growth in our four Strategic Business Areas: Missile Defense; Precision Engagement; Intelligence, Surveillance and Reconnaissance; and Homeland Security. Restore Raytheon Aircraft to preeminence in aviation, showcasing the Beechcraft ® and Hawker ® brands. Be a Customer- Focused Company based on Performance, Relationships and Solutions. On behalf of the Board of Directors and the employees of Raytheon, I want to offer a special “thank you” to my predecessor, Dan Burnham, who stepped down as CEO on July 1, 2003, and retired as Chairman on January 28, 2004. Dan led the  transformation of the company, helped give us financial flexibility, sharpened our focus and made sure we had a defense portfolio second to none. He launched and embedded Raytheon Six Sigma, introduced contemporary HR practices and managed  a smooth leadership succession. His trust, friendship and confidence have been, and will continue to be, very important to me. On behalf of all of his friends at Raytheon, I wish Dan and his wife, Meg, all the very best as they embark on their wonderful,  chosen path together. 333 BILL SWANSON screen before I go to sleep each night.  33 A CUSTOMER- FOCUSED COMPANY Given all this, what kind of company do I believe Raytheon is today? The answer is: Raytheon today is a company committed to customer success. We believe that if you help the customer succeed, you will create the right conditions to meet the needs of all your constituents. We believe that customer focus creates customer success, that customer success drives growth and that growth creates shareholder value. So, we believe that a customer focus creates shareholder value.  33 In our view, a customer-focused company has three pillars: performance, rela- tionships and solutions.  33 PERFORMANCE Performance is really as simple as “promises made and promises kept.” It’s taking one’s commitments seriously; when we make them, we must fulfill them. During the year, our customers and partners showed confi- dence in us in many ways. We received awards for a ship-based radar for ballistic missile defense from the U.S. Navy; a next gener- ation U.S. Air Force Distributed Common Ground System, the back- bone of current and future intelligence and information systems; a U.S. Missile Defense Agency Kinetic Energy Interceptor to target hos- tile missiles in the boost phase; a role as Ground Sensor Integrator for U.S. Army Future Combat Systems; continued modernization of the radar on the Air Force B-2 bomber; technical services for NASA; and 50 Hawker 400XP light jets and eight Hawker 800XP mid-size jets – from NetJets Inc.  33 RELATIONSHIPS Relationships are built on trust. Our customers depend on us. One of the most emo- tional examples of this personal bond is what it feels like to corre- spond with someone deployed in harm’s way. Those who have had this experience know that it can be wrenching to receive an e-mail from someone stationed in a high-risk area while you’re sitting at a computer screen in the safety of your office. You think long and hard before you compose your response. Before I press the “send” button, I always ask myself:  Have I listened? Have I helped? Have we done everything we can?  33 Listening. We are a company that listens; we’re getting better and better at listening, but we need to get  better still. Building positive relationships with our customers begins with listening – and trust. Integrity is something that only succeeds when it’s embedded in the culture. We ask the members of the Raytheon team to treat the company’s name as if it were their own. We ask the leaders of the team to create and maintain an environ- ment in which people are encouraged to step forward so that we can address issues early. Everything we do must begin with integrity.  33 SOLUTIONS We must develop and provide superior customer solutions, working as one company. We’re a technology company at our core. We plan to drive Raytheon 