United Technologies Corporation

PROFILE: Founded in 1934, United Technologies Corporation (UTC) is a multi-faceted diversified conglomerate. Earlier known as United
Aircraft Corporation, the company name was changed to the present name in 1975. It is headquartered in Farmington, Connecticut, USA
and presently conduct operations in more than 160 locations in 26 countries. UTCs operations are classified into four principal business
segments: Otis, UTC Climate, Controls, & Security, Pratt & Whitney and UTC Aerospace Systems. Otis and UTC Climate, Controls, &
Security are collectively referred to as the commercial businesses, while Pratt & Whitney and UTC Aerospace Systems are collectively
referred to as the aerospace businesses. Otis is the world's largest elevator and escalator manufacturing company, while Climate Controls
& Security makes alarms, monitoring equipment, surveillance and access control systems, and fire and hazard detection products. Pratt &
Whitney makes commercial and military engines, and UTC Aerospace Systems produces engine controls and flight systems for military
and commercial clients. The company is presently managed by a thirteen member board with Gregory J. Hayes as the president and chief
executive officer of the board.

GLOBAL AEROSPACE/DEFENSE PRODUCTS & SERVICES INDUSTRY HIGHLIGHTS AND RECENT TRENDS
As a sector, aerospace is particularly concerned with the performance of the parts being produced. Not just from a safety point of view, but
also with efficiency in mind. The lighter a part, the less fuel an aircraft uses, and this is of paramount importance with fuel being the main
cost of aircraft operation. The United States military comprises by far, the largest market for defense equipment, systems, and services in
the world. The companies included in this sector not only serve America's needs, but often are the suppliers most sought by its allies and
friends. The aerospace and defense industry reported lower revenues and sharply lower profits in 2015 compared with 2014, ending a run
of five consecutive years of record revenue and operating profit. The strong U.S. dollar (higher by nearly 20% against the Euro in 2015), is
largely to blame for the decline in revenue, which decreased revenues of non-U.S. companies when translated to U.S. dollars. Excluding
translation impacts, revenue would have been higher by 2%. Impairments and restructuring charges mainly caused operating profit to
decrease by USD7bn, primarily due to two companies: Bombardier reported lower profits by USD4.2bn, and United Technologies
Corporation (UTC) reported lower profits by USD1.6bn mainly due to various one-time Aerospace and defense overview charges taken in
the year. Aside from these two companies, aggregate industry profit was still lower by USD1.0bn, or 1%, attributable largely to the stronger
U.S. dollar.

According to the Deloittes 2016 Global aerospace and defense sector outlook, revenue growth for the global A&D sector is expected to
take a positive turn. Stable growth in global gross domestic product (GDP), lower commodity prices especially crude oil, and strong
passenger travel demand portend continued growth in the commercial aerospace subsector. Moreover, the resurgence of global security
threats and growth in defense budgets in many countries are all likely to promote global defense subsector revenue growth over the next
few years. Consequently, total global A&D sector revenues are estimated to grow 3.0 percent in 2016

GLOBAL ELEVATORS & HVAC EQUIPMENT/SERVICING INDUSTRY HIGHLIGHTS AND RECENT TRENDS
Due to increased urbanization in emerging market countries, especially India and China, the industry for elevators, air conditioning, cooling
systems and security systems is bound to expand in the future. The elevator business alone is nearly an USD18bn a year industry and is
expected to grow at an average of 1.7% a year for the next 5 years according to IBIS World. The industry is highly fragmented with UTC
having the third largest market share of 5.1% with Schindler elevators being the largest company in the industry at 9.2%. This industry is
reliant on the health of the economy as people are more willing to construct commercial buildings when the economy is in an expansion
and spend less during recessions. As the world economy improves, the demand for elevators will improve alongside, providing opportunities
for Otis and UTC in this market. The HVAC and refrigeration business is a USD47.6bn dollar industry which is expected to grow at more
than 3% over the next few years. UTC is the second largest company in this industry following Ingersoll-Rand. This industry is also highly
fragmented, allowing UTC and other large companies to consolidate smaller companies. In the Electronic Access Control System, UTC
competes with companies such as Honeywell and Siemens who both also provide fire safety systems as well. Success in this industry is
reliant on advanced technologies and strong reputation, especially in commercial uses as companies need to keep proprietary and valuable
information or technologies safe.

Elevators & HVAC Equipment/Servicing Industry is estimated to post a healthy market growth rate of more than 12% by 2019. Healthy
growth rate of this market can be attributed to the steady growth of the construction market in both developed and developing economies
across the globe. Since the global elevator and escalator market is an integral part of the global construction market, any increase in the
construction activity around the world is expected to foster this markets growth during the forecast period. Vendors in this market compete
on the basis of elevator and escalator installation, maintenance, and modernization services to gain prominence in this market during the
forecast period.

SEGMENT ANALYSIS
After a wave of massive acquisitions and divestitures over the last few years, UTC has realigned under four well-diversified business
segments. The Climate Controls & Security segment is UTCs largest business segment, forming nearly 30% of the companys total
revenues for 2015. The other remaining segments include Pratt & Whitney (25% of sales), Otis (21%), and UTC Aerospace Systems (25%).
Otis: The revenues and operating income from this segment have remained almost constant for the last five years, with a negative CAGR
of nearly 1%. Revenues declined from USD12.4bn in 2011 to USD11.98bn in 2015, while operating income increased from USD2.81bn in
2011 to USD2.93bn in 2015.
Climate, Controls & Security: Revenues for this segment have decreased from USD18.86bn in 2011 to USD16.7bn in 2015, while
operating income increased from USD2.42bn in 2011 to USD2.93bn in 2015.
Pratt & Whitney: Segments sales recorded a five-year compounded average growth of 2.6%. Sales increased from USD12.71bn in 2011
to USD14.08bn in 2015. Operating income remained stagnant for the same period, from USD1.86bn to USD0.86bn in 2015 owing to higher
negative engine margins within the LCE business and lower volume within P&WC.
Aerospace Systems: Segment has shown significant growth in the past five years. Revenue increased from USD4.76bn in 2011 to
USD14.09bn, while operating income increased from USD0.76bn toUSD2.36bn for the same period. The segment also provides
aftermarket services that include spare parts, overhaul and repair, engineering and technical support and fleet maintenance programs.
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FINANCIAL ANALYSIS

Large Scale of Operations With Diversified Product-Mix: UTCs total revenues grew at a compounded average growth rate (CAGR) of
3.69% during 2011-2015; after achieving steep growth in 2014, with revenues peaking at USD57.9bn, UTC saw its revenues decrease by
3.11% to USD56.5bn (After eliminating the Intercompany revenue and expenses) in 2015. Profits, however, surged 22.3% from USD6.2bn
in 2014 to USD7.6bn in 2015. (Note: the company restated its annual report for 2014 due to the selling of its Sikorsky segment). The dip
in revenue for 2015 was fuelled by decreased sales form its Otis and Pratt & Whitney segments. Otis was negatively affected by volume
declines in China and Europe, while Pratt & Whitney suffered from lower commercial and military engine sales.

Three of UTCs four segments experienced operational sales growth during 2015, driven by UTC Climate, Controls & Security (3%), UTC
Aerospace Systems (3%), and Otis (1%). Pratt & Whitney experienced an operational sales decline (1%) during 2015. Sales growth at
UTC Climate, Controls & Security was driven by the U.S. commercial and residential heating, ventilation and air conditioning (HVAC) and
transport refrigeration businesses. Sales growth at UTC Aerospace Systems was primarily due to growth in commercial aerospace OEM
sales, while the organic sales growth at Otis was primarily due to higher new equipment sales in North America and Asia outside of China.
The decline in sales at Pratt & Whitney was due to lower commercial and military engine sales and due to the unfavourable impact of
significant customer contract negotiations at UTC Aerospace Systems.

UTCs military sales was affected by U.S. Department of Defense spending levels. However, the sale of Sikorsky during 2015 reduced its
U.S. Government defense-spending exposure. Excluding Sikorsky, total sales to the U.S. Government were USD5.6bn in 2015, and
USD5.9bn in 2014, and were 10% of total UTC sales, respectively in both the years. The defense portion of its aerospace business is also
affected by changes in market demand and the global political environment.

The operational sales growth of 1% (approx. USD0.57bn) in 2015 over 2014 was more than offset by the adverse foreign currency
exchange of 4% (USD2.32bn) in 2015. The US market contribute around 38% of UTCs total sales; Europe and the Asia/Pacific follow,
contributing 27% and 20%, respectively, while the remaining coming from other geographies.

Volatile Yet Strong Operating Margins: In the expenditure side, cost of sales grew to USD40.43bn (72.07% of total sales) in 2015 from
USD40.89bn (70.64%) in 2014 leading to a dip in gross profit margins to 27.9% in 2015 from 29.4% in 2014. The operating expenses
comprises of expenses pertaining to R&D (4.1% of 2015 sales), sales and administration (10.5%), and remaining from other operating
expenses. It stood at USD48.81bn in 2015 against USD48.31bn in 2014, grew by a yoy growth of 1.04% in 2015.

Consequently, operating margin reduced to 13% (2015) from 16.6% (2014). However, fluctuation in operating margins in 2015 includes
the impact from activities that are not expected to persist, such as the adverse impact of asset impairment charges, unfavourable impact
of contract negotiations with customers, the beneficial impact of net gains from business divestiture activities, and other significant non-
recurring and non-operational items. The strong operating margins of UTC can be attributable to the high entry barriers in the industry,
UTCs established track record, high customer loyalty & top-notch product quality.

Net income at USD7.61bn in 2015 registered an annual improvement of 22.32% from USD6.22bn in 2014 with net margin improving to
13.56% in 2015 from 10.74% 2014. The improvement in net income had a positive impact on both return on assets and return on equity
as both improved to 6.61% and 12.39% respectively in 2015 from 5.36% and 9.46% in 2014.

Positive ROE shows that management is creating considerable returns on the capital it is investing in its operations. Steady gross profit
margins, strong operating margins and improvement in net margins highlight managements ability to manage fluctuating input costs and
its effectiveness of ongoing cost cutting programs.

Comfortable Debt-Protection Metrics: The total debt of the company in 2015 majorly comprised of short-term loans of USD0.93bn
(Approx. 0.64% of total debt; 2014: 4.53%) and Long term senior secured debt of USD19.49bn (99.36%; 95.47%). The gross interest
coverage (operating EBITDA/gross Interest expense) deteriorated from 8.73x in 2014 to 7.71x due to dip in operating profit to USD7.29bn
in 2015 (2014: USD9.59bn). However, the interest expenses are partially offset by the interest income of USD0.12bn in 2015 (USD0.22bn)
leading to improved net interest coverage (operating EBITDA/net interest expense) of 8.85x in 2015 (10.89x). Debt burden in the form of
financial leverage (net debt/ EBITDA) was low at 2.8x in 2015, marginally rose from 2.05x in 2014 due to decline in EBITDA, besides the
increase in debt level in 2015 from 2014.

Liquidity: Current and quick ratios were adequate at 1.18x and 0.72x respectively in 2015, declining though from 1.34x and 0.78x in 2014
due to fall in current assets in 2015 from 2014. The net cash conversion cycle has risen marginally to 87 days (2015) from 83 days (2014)
on the back of rise in inventories. The liquidity is comfortable, supported by healthy free cash flow of the company and high cash and
equivalents of USD7.06bn in 2015 (2014: USD.23bn); however, UTC's free cash flow (FCF) margin in recent years has been lower than
historical levels, partly due to high spending for aerospace development. FCF/total adjusted debt was approximately 11% in 2015 compared
to 15% in 2014. As a result of higher debt levels and margin pressure, UTC is expected to be slow to rebuild FCF/total adjusted debt to
stronger levels. Capital spending could be elevated longer than anticipated to support the GTF production ramp and other aerospace
programs as well as further restructuring. UTC plans USD1.5bn of restructuring during between 2015 and 2018 that would result in
USD0.9bn of annual savings when completed. FCF includes the impact of pension contributions. UTC expects to contribute USD0.17bn
to global pension plans in 2016. Globally, pension plans were underfunded by USD4.4bn at the end of 2015.

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RISKS
Foreign Exchange Risk: UTC being a company which operates globally, have a large volume of foreign currency exposures that result
from its international sales, purchases, investments, borrowings and other international transactions. Depending on market conditions,
foreign exchange risk also is managed through the use of derivative financial instruments and foreign currency debt. These financial
instruments serve to protect net income and net investments against the impact of the translation into USD of certain foreign exchange-
denominated transactions. UTCs international segment sales, including U.S. export sales, averaged approximately USD36bn over the last
three years ended 2015.
As of December 31, 2015, the aggregate notional amount of foreign exchange derivative financial instruments hedging or offsetting foreign
currency exposures was EURO750m. The derivative financial instruments primarily hedge or offset exposures in the euro, Japanese yen,
and U.K. pound. However, for its non-U.S. based entities, such as P&WC, a substantial portion of their costs are incurred in local currencies.
Consequently, there is a foreign currency exchange impact and risk to operational results as U.S. Dollars must be converted to local
currencies such as the Canadian Dollar in order to meet local currency cost obligations and it is expected that the foreign exchange risk
shall persist for UTC in 2016 as well as the dollar index shall strengthen further amidst global slowdown and Federal Reserves decision
to hike interest rate.

Commodity Price Exposures: UTC is vulnerable to volatility in the prices of raw materials used in some of its products and from time to
time it has to use forward contracts in limited circumstances to manage some of those exposures. In the future, if hedges are used, gains
and losses may affect earnings. There were no significant outstanding commodity hedges as of December 31, 2015.

Interest Rate Risk: UTCs interest-bearing investments and borrowings are subject to interest rate risk. They invest and borrow primarily
on a floating-rate basis; however, in light of current market conditions, they currently borrow primarily on a long-term, fixed-rate basis. From
time to time, depending on market conditions, they change the profile of their outstanding debt by entering into derivative financial
instruments like interest rate swaps. They entered into derivative financial instruments to hedge or offset the fixed interest rates on the
hedged item, matching the amount and timing of the hedged item. The company issue commercial paper, which exposes it to changes in
interest rates. Currently, UTC does not hold any derivative contracts that hedge its interest exposures, but may consider such strategies
in the future. It is very likely that the interest rate volatility in various countries shall continue in 2016 as well due its close relation with the
countrys fiscal balance, inflation rates and current account deficit. As many of the countries in which UTC operates, are still grappling with
these aforesaid issues, it is of crucial importance for the company to enter into interest rate swaps coupled with investing in fixed income
securities with different durations.

Credit Risk: On an ongoing basis, UTC review the creditworthiness of counterparties to their foreign exchange and interest rate
agreements and do not expect to incur a significant loss from failure of any counterparties to perform under the agreements. There are no
significant concentrations of credit risk related to their financial instruments with any individual counterparty. As of December 31, 2015,
UTC had USD10.65bn due from a well-diversified, highly rated group of bank counterparties around the world. In general, there is no
requirement for collateral from customers. However, derivative financial instruments are executed under master netting agreements with
financial institutions and these agreements contain provisions that provide for the ability for collateral payments, depending on levels of
exposure, their credit rating and the credit rating of the counterparty.

Vulnerability to economic slow-down in end-used industry: The end-user industry for UTC is reliant on the health of the economy as
people are more willing to construct commercial buildings when the economy is in an expansion and spend less during recessions. China
is the largest market for new accounts as it is a large country where urbanization is resulting in millions of people moving from farms to
cities. 20% of Otis revenue comes from the Chinese market and given growing concern over a potential housing bubble in China, if this
bubble were to be in fact reality, this would adversely affect UTCs revenues. UTC would be unable to make its revenues from servicing
these products and so this is a large risk that the firm faces.

STRATEGY NEAR, MEDIUM AND LONG TERM

UTC strives to maintain a balance between its private and military sectors, its commercial and aerospace operations, and its original
equipment (OE) and aftermarket products and services. It also juggles fluctuations in the market that may impact one or more of its
businesses. These fluctuations include changing fuel costs and contracts from the US Department of Defense (DoD), which are subject to
policies set by the White House and Congress. This strategy of product balance is combined with geographic balance, which has the
company investing in emerging markets that show great growth potential, such as Argentina, Brazil, China, Mexico, the Middle East,
Russia, and South Africa. UTC is champing at the bit to acquire aerospace and commercial companies with operations in India, looking to
achieve USD2.5bn in revenues from the country by 2015.

As developed economies such as the US and China grow at a slower pace, other emerging economies are poised to be the next growth
markets. Urbanization in these countries would create new opportunities for the companys building segment. Newer markets that are
potential contributors are India, which adds 50 million urban residents a year and has a good GDP growth rate, Central and South America,
whose biggest market is Brazil, Africa, and the Middle East region though much of the expansion will be confined to Turkey and high
income urban areas in the Middle East.

The companys Geared TurboFan (or GTF), which is a very quiet, fuel efficient engine, has turned out to be its knight in shining armor. The
engine helped Pratt & Whitney regain its position in the narrow body engines market against its competitor GE. The engines are already
booked to be deployed up to 2017 in Bombardiers CSeries, Airbuss A320neo, Mitsubishi Regional Jet, Irkut MC21, and Embraers E Jet
E2 planes. The company has predicted total engine sales of around 1,000 units per year by 2020, which beats its previous records.

The companys change in business model from sales to servicing will likely generate strong growth in China. As of today, the company
services only 25% of the lifts it sells in China, which is very small compared to the 75% in Europe and the US. The Chinese government is

3
passing new laws requiring more frequent inspections and that developers hire manufacturers to service the elevators they sell. This
change in laws will likely increase the companys servicing revenues in the years to come.

STRENGTHS: With strategically balanced portfolio of products and revenue streams coupled with robust research and development
capabilities with a workforce exceeding 200,000 employees UTC has an upper hand compared to most of the competitors. Furthermore,
UTCs is one of the largest conglomerates in the US having efficient and reliable mergers and acquisition capabilities with production
facilities for defense equipment as well

OPPORTUNITIES: All of UTCs business segments have great opportunities for growth because they are uniquely positioned to benefit
from widespread urbanisation and the rapidly growing markets. In the decades ahead. A much greater portion of the worlds population will
live in urban centers, driving investment in infrastructure and real estate development. This will create demand for products that contribute
to clean, safe, energy-efficient buildings. UTCs commercial businesses (Otis and UTC Climate, Controls & Security) are well established
in the worlds fastest-growing economies and are moving quickly to further localize manufacturing and distribution networks to capture new
opportunities and better serve customers.
Also, UTC Climate, Controls & Security formed a joint venture to manufacture and distribute HVAC products in India to expand the
companys presence there.
Furthermore, the outlook for the commercial aerospace business is very strong, driven by the need to replace aging fleets in North America
and by increasing demand across Asia. Over the next 20 years, 30,000 new aircraft are expected to enter service. UTC is at the forefront
in developing the next generation of aircraft to meet this growing global demand.

PROJECTIONS (Appendix A)
Total revenue in 2016 is projected at USD55.44bn, with operational increase of USD1.71bn on the back of rise in revenues of innovative
products, and foreign currency translation loss of USD2.34bn. Consequently, there would be a net decrease of USD0.66bn in revenue in
2016. 2017 revenue is estimated to witness a net gain of USD1.99bn over 2016 due to operational increase of USD1.46bn and translation
loss of USD1.8bn. As discussed earlier, in the foreign risk section, USD is expected to strengthen further in relation to other currencies in
2016 and 2017.
The cost of revenues is anticipated to rise to 72.79% of total revenues in 2016 due to increase in sales volume. However it is going to fall
back again to 71.34% in 2017 as the translation loss is projected to decline to USD1.8bn in 2017 from USD2.34bn in 2016. R&D expenses
are projected to remain at 4.06% of revenues over 2016-2017 on account of steady growth in investment in Aerospace segment. Sales
and administrative expenses are also pegged at 10.58% and 10.53% of total revenues in 2016 and 2017, respectively, on the back of rise
in investments of launch of new products in the innovative product segments which shall be partially offset by lower expenses on products
that shall lose market exclusivity in 2016 and 2017.
Consequently, operating margin shall dip marginally to 12.21% in 2016 from 13% in 2015 and shall improve again to 13.72% in 2017.
Debt/EBITDA shall improve in 2016 and 2017 to 2.74x and 2.13x respectively on the back of declining debt burden with the repayment of
long-term loans and in the absence of big mergers or acquisitions. Interest coverage shall remain comfortably at 7.71x and 9.9x in 2016
2017.

PEER COMPARISON OF 2015 FINANCIALS (Appendix B)

The closest peer of UTC is Rolls-Royce Holdings PLC and Boeing Co. with similar geographical presence experiencing similar opportunities
and headwinds. The return on equity, return on assets, financial leverage and interest coverage ratios of these entities are pretty much
comparable. However, in profitability segment UTC is better than Rolls-Rocye and Boeing with operating margin of 13% in relation to Rolls-
Royces 10.9% and Boeings 7.7%; net margin of 13.56% as compared to Rolls-Rocyes 0.6% and Boeings 5.4%. Cash conversion cycle
of Rolls-Royce with 88 days is very much comparable to UTCs 90 days.
The other closest peer of UTC in the peer set in Appendix A is Honeywell International Inc as far as revenue size is concerned. However
in terms of operating profit margin and net profit margin Honeywell has an upper hand with 17.7% and 12.4% to UTCs 13% and 13.56%,
respectively. In liquidity front, current ratio of UTC with 1.18x is tad higher than Honeywells 1.09x, however the cash conversion cycle of
Honeywell is in a better position than that of UTC. In debt section as well, Honeywells financial leverage (average) with 2.7x is more
comfortable than UTCs 3.20x.

CREDIT RATING: Given the present operational and financial profile, strategy for near, medium and long term along with the projections
for 2016 and 2017, the organisation may be assigned A- rating with a Stable Outlook.

Significance of the Rating: Going by its past five years performance along with its consolidated position in the market and the present
headwinds that are faced by the entire industry not just this entity, the rating is not fit for an upgrade.
However if this present trend of declining profitability continues in the near to medium term which is backed by its operational inefficiency
(structural issues), a significant loss of market share or persistent deterioration in margins instead of slow-down in global markets (cyclical
issues) then it might be subjected to one/two notch downgrade. However, the same is unlikely to happen in the near future, hence, the
stable outlook.

Credit Exposure: The entity at present has significant operating cash flows along with access to available lines of credit and revolving
credit agreements. It also does not have to tap debt capital market or avail fresh long term bank loans in the near term unless it plans to
go for some big merger and acquisitions. However given the sustained foreign currency translation loss it is facing along with the volatile
interest rates globally, derivatives in the form of currency options and forwards and interest rate swaps would fit their requirements.

4
Appendix A

UTC Financial Summary: Actuals and Projections

Actuals Projections
USDm 2014 2015 2016 2017
Revenue 57,900.00 56,098.00 55,438.18 57,424.47
Cost of revenue 40,898.00 40,431.00 40,355.01 40,964.87
Goss profit 17,002.00 15,667.00 15,083.17 16,459.60
Operating expenses
Research and development expenses 2475 2279 2,252.19 2,332.89
Sales, General and administrative 6172 5886 5,863.17 6,049.21
Other operating income (expenses) -1238 211 200.00 200.00
Total operating expenses 7409 8376 8,315.37 8,582.10
Operating Income 9,593.00 7,291.00 6,767.80 7,877.50
Interest expenses 1100 945 878.15 795.50
Interest income 219 121 100.00 101.00
Other income (expenses)
Income before taxes 8,712.00 6,467.00 5,989.65 7,183.00
Provision for income taxes 2244 2111 1,856.79 2,226.42
Net income from continuing operations 6,468.00 4,356.00 4,132.86 4,956.58
Net income from discontinued operations 154 3612 0 0
Other 402 360 0 0
Net income 6,220.00 7,608.00 4,132.86 4,956.58
Net income available to common shareholders 6,220.00 7,608.00 4,132.86 4,956.58

Cash and cash equivalents 5,229.00 7,075.00 7,748.57 9,050.21

Short-term debt 126.00 926.00 826.00 776.00
Long-term debt 19,575.00 19,499.00 17,739.00 15,979.00

Gross Margin (%) 29.36% 27.93% 27.21% 28.66%

Operating margin (%) 16.57% 13.00% 12.21% 13.72%
COGS (% of sales) 70.64% 72.07% 72.79% 71.34%
EBT Margin % 15.05% 11.53% 10.80% 12.51%
Debt/equity (x) 0.60 0.71 0.49 0.49
Financial leverage (x) 2.05 2.80 2.74 2.13
Interest coverage (x) 10.89 8.85 7.71 9.90
Net Cash Conversion Cycle (days) 83 87 96 102
UTC Annual Reports

5
Appendix B

IMMEDIATE INDUSTRY PEERS

Free
Retur Retur Cash
Op. Net Cash Gross Net Debt-
Credit Revenue n on n on Current Conversio
Company Name Margin Margin Flow Coverag Leverag equit
Rating (USDm) Equit Asset ratio (x) n Cycle
Segment s (%) s (%) (USDm e (x) e (x) y (x)
y (%) s (%) (Days)
)
United
Technologies Moodys A3 56098 13.0 13.56 4237 7.84 3.20 0.71 12.39 6.61 1.18 90
Corp

OTIS
KONE Oyj B 8,647 14.4 11.94 1354 - 2.97 0.01 45.42 14.89 1.17 112
Schindler Holding
9391 10.7 7.33 880 58.76 3.63 0.19 26.67 8.02 1.17 12
AG
Pratt & Whitney
Rolls-Royce
S&P A- 13725 10.9 0.6 199 3.25 4.45 0.57 1.46 0.37 1.48 88
Holdings PLC
General Electric
S&P AA+ 117386 14.4 -5.23 12582 3.36 5.01 1.5 -5.42 -1.08 1.61 101
Co
Climate,
Controls &
Security
Tyco International
Moody's A3 9902 8.9 5.56 293.00 8.01 3.04 0.53 12.68 4.57 1.21 53
PLC
G4S PLC ADR S&P BBB- 6863 2.7 0.12 172.00 1.66 7.01 3.15 0.99 0.17 1.46 49
Aerospace
Systems
Moody's A2
96114 7.7 5.38 6913 27.02 14.9 1.38 68.96 5.34 1.35 193
Boeing Co Fitch A
Honeywell
Moody's A2 38581 17.7 12.36 4381 22.25 2.7 0.3 26.53 10.06 1.09 58
International Inc
Source: UTC Annual Report and Morningstar

6
References:
1. UTC 2013, 2014 and 2015 Financial Report
2. www.statista.com
3. www.morningstar.com/
4. www.marketrealist.com/
5. Deloittes 2015 global aerospace and defense sector financial performance study
6. KPMG Global Aerospace and Defense outlook