1. P&WC PROPRIETARY INFORMATION 1 2010 PWCS VENDOR SYMPOSIUM P&WC Supply Chain

2. P&WC PROPRIETARY INFORMATION 2 WARNING – PROPRIETARY NOTICE This document is the property of Pratt & Whitney Canada Corp. (“P&WC”). You may not possess, use, copy or disclose this document or any information in it, for any purpose, including without limitation to design, manufacture, or repair parts, or obtain FAA or other government approval to do so, without P&WC's express written permission. Neither receipt nor possession of this document alone, from any source, constitutes such permission. Possession, use, copying or disclosure by anyone without P&WC's express written permission is not authorized and may result in criminal or civil liability.

3. P&WC PROPRIETARY INFORMATION 3 AGENDA Customer Service Organization Customer Service Game Plan Supply Chain Process Overall & Target Performances Supplier Scorecards Supplier Management Process Excellence in Quality Supplier Gold

4. P&WC PROPRIETARY INFORMATION 4 Raffaele Virgili Vice President - Customer Service Anthony Rossi Manager - Spare Parts Services ACE PMO Asset Management Business Development Distribution & Logistics Antoine Marez Supply Chain Management Sales & Marketing Inventory & Planning SPARE PARTS SERVICES STRUCTURE

5. P&WC PROPRIETARY INFORMATION 5 SPARE PARTS SERVICES Who we are.. P&W Component Solutions New, Used, Exchange & Repair Services Montreal,Qc PL17 Spare Part Services MRO Network Operators FBO OEM Airlines Accessory & Component Services (ACS) Repair Vendor / Parts Supply Chain

6. P&WC PROPRIETARY INFORMATION 6 Service and Distribution Agreements Support, Part distribution RESPONSIVENESS PERFORMANCE EASE OF DOING BUSINESS MFA on key processes Reliability, Dispatch CUSTOMER TO P&WC P&WC TO SUPPLIER BASE Scorecard Ease of doing business survey

7. P&WC PROPRIETARY INFORMATION 7 SUPPLY CHAIN STRUCTURE Components D. Bush B. Komlosi Quality Supplier Gold / Lean New Supplier Intro Suppliers Scorecards Transversal processes Contract Negotiation, Price & TAT, Focus point T. Gauld G. Bock Supply Chain Value Streams Supply Chain Quality Nacelles R. Day EC&A F. Blanchard G. Ramirez R. Day

8. P&WC PROPRIETARY INFORMATION 8 Measure performance (Scorecard) Segment suppliers & develop strategies Allocate resources and use ACE tools to close gaps Establish performance targets 2 3 41 Scorecards and Segmentation build the foundation for Supply Base Performance Improvement Supplier Gold SUPPLY CHAIN PROCESS 2010 KEY INITIATIVES Monthly Reviews Shared Objectives Service agreement Quality CoE Matrix Cost control TAT performance Quality Control Tower CAR Management Monthly QC Scorecard

9. P&WC PROPRIETARY INFORMATION 9 ESTABLISH PERFORMANCE TARGETS TAT Reduction - Components

10. P&WC PROPRIETARY INFORMATION 10 ESTABLISH PERFORMANCE TARGETS TAT Reduction - Accessories

11. P&WC PROPRIETARY INFORMATION 11 ESTABLISH PERFORMANCE TARGETS Supplier Disposition TAT

12. P&WC PROPRIETARY INFORMATION 12 SUPPLIER SCORECARD EVOLUTION 2000 – Vendor “Report Cards” 2007 – “Common Scorecard” 2003 – Scrap Rates 2010 – Next Generation Scorecard 2005 – Industry Best In Class 2008 – Target TAT’s – OTD % 2009 – Compare to Supplier data 2010 – Supply chain data merge

13. P&WC PROPRIETARY INFORMATION 13 SUPPLIER SCORECARD

14. P&WC PROPRIETARY INFORMATION 14 SUPPLIER MANAGEMENT PROCESS Plan Reviews Gather Data Communicate Performance Define & Track Plan 1 2 3 4 Planning

15. P&WC PROPRIETARY INFORMATION 15 EXCELLENCE IN QUALITY Key objective: 0 Defect Description: Increase reporting of product deviations and timely root cause resolution. CAR Management ( Corrective Action Required) Supplier’s role: Respond to CARs with corrective action plan implemented in 30 days KPI: # of CARS reported CAR closure TAT Response acceptabl e? Open CAR Communicate to supplier Respond with corrective action Close & communicate Customer Inspection P&WC Supplier Quality No Yes 30 day TAT

16. P&WC PROPRIETARY INFORMATION 16 SUPPLIER GOLD UTC Supply Chain Best practice UTC Supplier Gold is a program that facilitates and accelerates superior performance Four performance levels Gold Criteria: - Zero CAR (escapes) - 100% to requirements for the last 12 months - Market Feedback score (EoDB, com. ) ≥ 6 - UTC Lean Assessment score ≥ 350 Benefits - Performance- Reduced costs - Capacity- Reward & Recognition - Growth- Award - Employee satisfaction- UTC Leadership visibility - Industry publications

17. P&WC PROPRIETARY INFORMATION 17 CONCLUSION Repair disposition within 5 day Repair Time within 15 day Commitment to support 15 day target Zero CAR / Escape Improve robustness to support future growth ( Lean ) SUPPLIER GOLD Rationalization Consolidation Partnership

18. 18 P&WC PROPRIETARY INFORMATION