1 Rockwell Collins EPA Programs: Bringing Industry Value National Environmental Partnership Summit 2006 May 10, 2006 Atlanta, Georgia Vicki Fisher

2 Rockwell Collins  72 domestic locations including 19 manufacturing, service facilities and sales and marketing  30 international locations including 4 manufacturing with the others in service or support RCI is a $3.45 billion global company with headquarters and manufacturing operations in the United States and facilities located in Europe, Asia, and Australia employing approximately 17,000 people.

3 RCI is recognized as a world-class provider of aviation and information technology for the world's aircraft manufacturers, more than 400 airline customers as well as a major share of the world's military forces. Rockwell Collins CommercialSystems GovernmentSystems Collins Aviation Services

4 Performance Track  Reputation enhancement was primary driver to enter the partnership  10 EPA National Environmental Performance Track facilities (71% of major facilities)  Four Rockwell Collins facilities were charter members in 2000  One of first 3 Performance Track Corporate Leaders Performance Track

5 Performance Track Corporate Leader Designation New in 2005 Performance Track

6 Internal Benefits Realized  Drives cost savings through commitments  Visibility for environmental within company  Creates partnerships with other parts of the business  Keeps us in touch with trends in policy and regulation  Tremendous networking with peers and regulators - Benchmarking  Incentives provided by EPA Performance Track

7  Landfill Reduction – Reduced the amount of material sent to the landfill by 47% from 66 tons per $100 million in sales in 2001 to 35 tons per $100 million in sales in  Hazardous Waste – Reduced the amount of hazardous waste generated by 44% from 9 tons per $100 million in sales in 2001 to 5 tons per $100 million in sales in  Air Emissions – Reduced air emissions 60% since 2000 from 96 tons to 38 tons in  Paper Usage – Eliminated 16,500 reams and saved $50,000 over 2 years Performance Examples Environmental Culture

8 External Benefits  Positive reputation and recognition  Develops partnerships/relationships  Leverages emerging trends  Corporate environmental and social responsibility is now tied to corporate performance Investment Valuation (e.g., KLD, Innovest, Calvert, Dow Jones Sustainability Index) Rockwell Collins named top 100 Best Corporate Citizens by Business Ethics based on KLD research  More companies are publishing corporate responsibility reports highlighting energy, environmental, and social actions Internal CSR team formed Performance Track

9 Results  Green Communities Grant Program  LEEDS building project  ESH link on main Rockwell Collins external webpage  Purchase of renewable energy certificates – Green Power Partnership  Supply Chain improvement initiatives  Green Suppliers Network participation  Participation in CERES Facility Reporting Project  Chemical Services Provider implemented Performance Track

10 Rockwell Collins' Green Communities Program is designed to help fund environmental projects in the communities in which the company operates. The program also recognizes and rewards participation by Rockwell Collins employees. Oak Savannah prairie buffer along the Upper Iowa River Decorah, Iowa The Ulistac Natural Area Planted drought-resistant plants and provided pea gravel for the walking trail Santa Clara, California Green Communities Community Involvement

11  Rockwell Collins has joined EPA’s Green Power Partnership. As a Green Power Partner, RCI has pledged to offset the carbon emissions of a portion of its electricity consumption. Committed to purchasing 10,000 megawatt hours of renewable energy certificates per year for at least three years. This purchase equates to a CO 2 reduction of 13.8 million pounds. Global Citizenship Community Involvement

12 “ By working with suppliers, we can reduce waste, cycle time and inventories while improving the quality of materials and services. We can achieve our goals for superior customer value, sustainable growth and global leadership.”  Preferred supplier performance expectations including environment, safety & health  Teaching suppliers lean concepts and techniques to gain continuous process improvements and measures through Lean transformation. Goal to become a “virtual” member of our commodity team Partner with Suppliers & Customers Lean Supply Chain as Philosophy and Practice Strategic Sourcing!

13  Supplier Evaluation  Selection process includes environmental impact and responsiveness with preferred status  Survey being developed in 2006  Strategy to integrate with quality onsite audits  Green Suppliers Network – Rockwell Collins is participating as means to help suppliers gain efficiencies and cost savings on the E side. Compliments Lean Supply efforts! Supplier Environmental Performance Improvement Partner with Suppliers & Customers

14 Rockwell Collins and our employees are involved in all aspects of community life – from educational initiatives to human service projects and community celebrations. By building solid community partnerships at all levels, we enhance the quality of life and contribute to the vitality of our communities. World’s Largest Swan Species Restoration of trumpeter swans into the environment by providing food and an aerated pond to nesting pair. Bellevue, Iowa facility Environment, Safety & Health Fairs Biodiversity Initiatives K-12 Partnerships E-Waste Stewardship Community Involvement

15 Rockwell Collins Working together creating the most trusted source of communication and aviation electronic solutions