Err:502

($ in Millions Except Per Share Amounts)

Transaction Structure, Assumptions & Scenarios

Buyer Name: United Technologies Corp Seller Name:

Announcement Date: 9/15/2011 Premium to Seller's Share Price:
Assumed Close Date: 12/31/2011 Per Share Purchase Price:
Units for Employees: 1,000,000 Purchase Price:

Select Purchase & Financing Scenario: 1 %:

Financing Fees: 1.0%
Advisory Fees: 0.1%
Selected Legal & Misc. Fees:
Scenario:
Scenario: 1 1 2 3
Per-Share Purchase Price: $ 127.50 $ 127.50 $ 127.50 $ 127.50
Equity Purchase Price: $ 15,921 $ 15,921 $ 15,921 $ 15,921
Refinanced Short-Term Debt: 27 27 27 27
Capitalized Financing Fees: 121 121 - 161
Advisory & Legal Fees: 26 26 26 26
Funds Required: 16,068 16,068 15,948 16,109

% Cash: 0.0% 0.0% 0.0% 0.0%

% Stock: 25.0% 25.0% 100.0% 0.0%
% Debt: 75.0% 75.0% 0.0% 100.0%

Cash Used: - - - -
Stock Issued - Dollar Value: 4,017 4,017 15,948 -
Debt Issued: 12,051 12,051 - 16,109

Foregone Cash Interest Rate: 0.5% 0.5% 0.5% 0.5%

Debt Interest Rate: 3.0% 3.0% 3.0% 3.0%
Sources & Uses

Sources: Uses:
Buyer Cash: $ - Equity Value of Company:
Buyer Stock Issuance: 4,017 Advisory & Legal Fees:
Debt Issued: 12,051 Capitalized Financing Fees:
Additional Cash for Transaction Fees: 26 Short-Term Debt Refinanced:
Long-Term Debt Assumed: 2,374 Long-Term Debt Assumed:
Total Sources: $ 18,468 Total Uses:

Purchase Price Allocation & Pro-Forma Balance Sheet Adjustments

Goodwill Calculation: Fixed Asset Write-Up:

Equity Purchase Price: $ 15,921 PP&E Write-Up %:
Less: Seller Book Value: (3,739) PP&E Write-Up Amount:
Plus: Write-Off of Existing Goodwill: 1,991 Depreciation Period (Years) - Book:
Total Allocable Purchase Premium: $ 14,173 Yearly Depreciation Expense - Book:

Less: Write-Up of PP&E: (163) Intangible Asset Write-Up:

Less: Write-Up of Intangibles: (2,835) Excess Purchase Price to Allocate:
Less: Write-Off of Existing DTL: (584) % Allocated to Intangibles:
Plus: Write-Off of Existing DTA: 234 Intangibles Write-Up Amount:
Plus: New Deferred Tax Liability: 921 Amortization Period (Years) - Book:
Total Goodwill Created: $ 11,747 Yearly Amortization Expense - Book:

New Deferred Tax Liability:

Combined Income Statement:

Adjustments Combined Years

Debit Credit 12/31/2011 12/31/2012
Buyer + Seller Revenue: $ 72,241
Revenue Synergies:
Total Revenue: 72,241

Buyer + Seller Costs and Expenses: 61,438

Expenses Associated with Revenue Synergies:
Cost Synergies:
Total Operating Expenses: 61,438

Total Operating Income: 10,803

Buyer + Seller Interest Income / (Expense): (741)
Foregone Interest on Cash: -
Interest Paid on New Debt: (362)
New Amortization of Intangibles Expense: (567)
Amortization of Financing Fees: (24)
New Depreciation Expense: (20)
Pre-Tax Income: 9,089

Income Taxes: (2,818)

Tax Rate: 31.0%

Noncontrolling Interest Earnings: (424)

Net Income: 5,847

Diluted Shares Outstanding: 903.0

Shares Issued in Transaction: 53.1
Total New Shares Outstanding: 956.1

EPS: $ 6.12
Buyer Standalone EPS: $ 6.26
Accretion / (Dilution): $ (0.14)
Accretion / (Dilution) %: (2.3%)

Pro-Forma Reconciliation:
Plus: New Amortization of Intangibles: 567
Plus: Amortization of Financing Fees: 24
Pro-Forma Pre-Tax Income: 9,680

Income Taxes: (3,001)

Tax Rate: 31.0%

Noncontrolling Interest Earnings: (424)

Pro-Forma Net Income: 6,255

Pro-Forma EPS: $ 6.54

Buyer Standalone EPS: $ 6.26
Pro-Forma Accretion / (Dilution): $ 0.28
Pro-Forma Accretion / (Dilution) %: 4.5%
Combined Balance Sheet:

Pre-Transaction Adjustments
Buyer Seller Debit Credit 12/31/2011
Assets:
Current Assets:
Cash & Cash-Equivalents: $ 2,707 $ 987 $ - $ 26 $ 3,668
Other Current Assets: 22,647 4,280 - - 26,927
Total Current Assets: 25,354 5,267 30,595

Long-Term Assets:
PP&E, Net: 6,371 1,633 163 - 8,168
Goodwill: 21,466 1,991 11,747 1,991 33,213
Other Intangible Assets: - 917 2,835 - 3,752
Capitalized Financing Fees: - - 121 - 121
Deferred Tax Assets: - 234 - 234 -
Other Long-Term Assets: 6,922 671 - - 7,593
Total Long-Term Assets: 34,759 5,447 52,846

Total Assets: 60,113 10,714 83,441

Liabilities & Equity:

Current Liabilities:
Short-Term Debt: - 27 27 - -
Other Current Liabilities: 18,662 2,026 - - 20,688
Total Current Liabilities: 18,662 2,052 20,688

Long-Term Liabilities:
Long-Term Debt: 10,010 2,374 - 12,051 24,435
Deferred Income Tax Liability: - 584 584 921 921
Other Long-Term Liabilities: 8,879 1,965 - - 10,844
Total Long-Term Liabilities: 18,889 4,923 36,201

Total Liabilities: 37,551 6,975 56,888

Equity: 22,562 3,739 3,764 4,017 26,553

Total Liabilities & Equity: $ 60,113 $ 10,714 $ 83,441

Balance Check: OK! OK! OK!

Sensitivity Analysis - Pro-Forma Year 1 EPS Accretion/Dilution and Purchase Price vs. Cash/Stock Split

Per Share Purchase Purchase Consideration - % Stock

Price
 Goodrich Corporation
47.4%
$ 127.50
$ 15,921

Amount: Period:
5
N/A
$ 10 N/A
$ 15,921
26
121
27
2,374
$ 18,468

10.0%
163
8
20

14,173
20.0%
2,835
5
567

$ 921
Combined Years
12/31/2013
$ 76,606

76,606

64,776

64,776

11,830
(741)
-
(362)
(567)
(24)
(20)
10,117

(3,086)
30.5%

(424)

6,607

896.0
53.1
949.1

$ 6.96
$ 7.03
$ (0.07)
(1.0%)

567
24
10,708

(3,266)
30.5%

(424)

7,018

$ 7.39
$ 7.03
$ 0.36
5.2%
 Err:502
($ in Millions Except Per Share Amounts)

Err:502 Err:502

Share Price: $ 75.61 Share Price:

Shares Outstanding (MM): 908.7 Shares Outstanding (MM):
Market Cap: $ 68,708 Market Cap:
Buyer Average Tax Rate: 30.7% Seller Average Tax Rate:

Buyer - Income Statement Seller - Income Statement

Historical Projected Years Historical

12/31/2011 12/31/2012 12/31/2013 12/31/2011
Revenue: $ 59,163 $ 63,107 $ 66,665 Revenue: $ 8,154

Costs and Expenses: 50,794 53,717 56,413 Costs and Expenses: 6,884

Operating Income: 8,369 9,390 10,252 Operating Income: 1,269

Interest Expense & Other: (592) (596) (592) Interest Expense & Other: (153)
Pre-Tax Income: 7,777 8,794 9,660 Pre-Tax Income: 1,117

Income Taxes: (2,388) (2,726) (2,946) Income Taxes: (335)

Tax Rate: 30.7% 31.0% 30.5% Tax Rate: 30.0%

Noncontrolling Interest Earnings: (400) (415) (415) Noncontrolling Interest Earnings: (7)

Net Income: $ 4,989 $ 5,653 $ 6,299 Net Income: $ 774

Earnings Per Share (EPS): $ 5.48 $ 6.26 $ 7.03 Earnings Per Share (EPS): $ 6.16
Average Shares Outstanding: 910.5 903.0 896.0 Average Shares Outstanding: 125.6
Buyer - Balance Sheet: Seller - Balance Sheet:

Historical Projected Historical

12/31/2011 12/31/2012 12/31/2013 12/31/2011
Assets: Assets:
Current Assets: Current Assets:
Cash & Cash-Equivalents: $ 2,707 $ 6,304 $ 10,358 Cash & Cash-Equivalents: $ 987
Other Current Assets: 22,647 24,049 25,313 Accounts Receivable, Net: 1,343
Total Current Assets: 25,354 30,353 35,671 Inventories, Net: 2,877
Prepaid Expenses: 60
Long-Term Assets: Income Taxes Receivable: -
PP&E, Net: 6,371 6,511 6,654 Total Current Assets: 5,267
Goodwill: 21,466 21,151 20,836
Other Long-Term Assets: 6,922 6,922 6,922 Long-Term Assets:
Total Long-Term Assets: 34,759 34,584 34,412 PP&E, Net: 1,633
Goodwill: 1,991
Total Assets: $ 60,113 $ 64,937 $ 70,083 Other Intangible Assets, Net: 917
Deferred Income Tax Asset: 234
Liabilities & Equity: Other Assets: 671
Total Long-Term Assets: 5,447
Current Liabilities:
Short-Term Debt: - - - Total Assets: $ 10,714
Other Current Liabilities: 18,662 19,906 21,029
Total Current Liabilities: 18,662 19,906 21,029 Liabilities & Equity:
Current Liabilities:
Long-Term Liabilities: Short-Term Debt: $ 27
Long-Term Debt: 10,010 10,010 10,010 Accounts Payable: 769
Other Long-Term Liabilities: 8,879 8,893 8,906 Accrued Expenses: 1,211
Total Long-Term Liabilities: 18,889 18,903 18,916 Income Taxes Payable: 46
Total Current Liabilities: 2,052
Total Liabilities: 37,551 38,809 39,945
Long-Term Liabilities:
Equity: 22,562 26,128 30,138 Long-Term Debt & Capital Leases: 2,374
Pension Obligations: 904
Total Liabilities & Equity: $ 60,113 $ 64,937 $ 70,083 Other Postretirement Benefits: 286
Long-Term Income Taxes Payable: 174
Balance Check: OK! OK! OK! Other Long-Term Liabilities: 600
Deferred Income Tax Liability: 584
Total Long-Term Liabilities: 4,923

Total Liabilities: 6,975

Equity: 3,739

Total Liabilities & Equity: $ 10,714

Balance Check: OK!

 $ 86.48
124.9
$ 10,799
30.0%

Projected Years
12/31/2012 12/31/2013
$ 9,134 $ 9,941

7,721 8,363

1,413 1,578
(145) (149)
1,268 1,430

(380) (429)
30.0% 30.0%

(9) (9)

$ 879 $ 992

$ 7.02 $ 7.96
125.2 124.6
 Projected
12/31/2012 12/31/2013

$ 829 $ 1,077
1,472 1,602
3,156 3,418
78 85
- -
5,535 6,183

1,936 2,107
1,991 1,991
917 917
278 314
815 887
5,937 6,215

$ 11,472 $ 12,398

$ 27 $ 27
754 817
1,366 1,479
19 22
2,166 2,344

2,374 2,374
904 904
286 286
237 267
678 738
614 692
5,094 5,262

7,260 7,607

4,213 4,791

$ 11,472 $ 12,398

OK! OK!
 Err:502
($ in Millions)

Revenue Synergies - United Technologies Corp - Commercial Aircraft Deliveries and Incremental Revenue

Historical Combined Years

12/31/2009 12/31/2010 12/31/2011 12/31/2012

Cost Synergies - Margin Improvements for Seller

Historical Combined Years

12/31/2009 12/31/2010 12/31/2011 12/31/2012
tal Revenue

Combined Years
12/31/2013

Combined Years
12/31/2013