UTC AeROSPACe SYSTemS Jason Raaum Seattle, washington To attract and retain a highly skilled workforce, we offer  competitive benefits that help employees save for their future.  In 2012, we launched our newest initiative, the Lifetime Income  Strategy. A first of its kind, it provides employees in our 401(k)  savings plan an affordable and effective option for secure income  in retirement. The new feature allows for income protection in  retirement by combining the efficiency and simplicity of a target  date portfolio with the security and certainty of retirement income guaranteed for life by top-rated insurance companies. There is no requirement for employees to remain at UTC upon  completion of a degree, but we are pleased that the vast majority  do. We also are pleased at the recognition our program has  received by third parties, including the National Association  of Independent Colleges and Universities, as one of the most  generous employee education programs in the world. We encourage and support lifelong learning. We  launched our Employee Scholar Program in 1996.  In 2012, we celebrated a milestone, reaching an  investment of $1 billion in this program. While  many companies offer some form of tuition  reimbursement, our employees never even see  a bill. We pay upfront and directly to schools,  covering the costs of tuition, fees and books — up to annual and total degree limits — for any  employee, anywhere in the world.  UTC ClImATe, COnTROlS & SeCURITY Subhash Chand Gurgaon, India PRATT & whITneY lulues Suhani east hartford, Connecticut |  13   13 2012 AnnUAL REPORT