raytheon presentation

7/31/2019 Raytheon Presentation

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Panneer Balasbarmaniam

Norma TokunbohCheryl Bradley

Linda Hayes

Friends UniversityProfessor: Dr John Murphy, Ph.D

Date: August 27,2012


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Raytheon was established inCambridge, Massachusettson July 7, 1922 as theAmerican Appliance

Company and got its presentname of Raytheon in 1959.A global technology leaderin:

Defense, government andcommercial electronicsBusiness and specialmission aircraft and guidedmissiles


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Integrated Defense System

Intelligence and Information System

Missile SystemsNetwork Centric Systems

Space & Airborne Systems


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Focus on key strategic pursuits, technology, and mission assurance, tosustain and grow its position in four core markets;

Sensing: Provide the breadth of sensing solutions required to meet itscustomers mission needs Effects: Leverage kinetic energy based expertise into electronic warfare (EW),directed energy and cyber-solutions.

C3I (Command, Control, Communication and Intelligence): Broaden marketpresence in communications, networking and knowledge management.Mission support: Expand product support, engineering services and training.

Leverage its domain knowledge in air, land, sea, space and cyber for allmarketsExpand international business by building on its relationships and deep

market expertise.Continue to be a customer focused company based on performance,relationships and solutions and commitment to social responsibilityDeliver innovative supply chain solutions to accelerate growth, createcompetitive advantage and bring valued, global solutions to its customers.


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Customer: Be regarded as a customer focused company based onperformance, relationships and solutions.Growth: Grow revenue faster than the market, build on goodperformance in improving cash flow. Execute well and withpredictability.

People: Retain and attract world-class talent while providingsuperior opportunities for further individual development. Treat allemployees with respect. Leverage diversity efforts as a competitiveadvantage, continuing Raytheons leadership in diversity Productivity: Improve ROI. Take Raytheon six sigma to next level,further engaging customers and partners. Deliver greater value andpredictability through the integrated product development system(IPDS). Earned value management system (EVMS) and capabilitymaturity model integration (CMMI).


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Mission StatementCustomer success is Raytheons mission

Our people and products are currently providing solutions across the LVC andC2 domains, saving lives and saving money for the war fighter

VisionsBe the most admired defense and aerospace system company throughRaytheons world -class people, innovation and technology.

ValuesPeople: Treat people with respect and dignity. Welcome diversity and diverseopinions. Collaborate with fellow employees to improve skills. Recognize andreward accomplishment. Foster teamwork and collaboration

Integrity: Be honest, forthright and trustworthy. Use straight talk; no hiddenagendas. Respect ethics, laws and collaboration.Commitment: Honor commitments to customers, shareholders, suppliers, thecommunity and each other. Accept personal responsibility to meetcommitments; be accountable.Excellence: Improve performance continually. Achieve innovation in all areaswhere Raytheon does business with. Stress quality, productivity, growth, best

practices and measurement. Always strive to be the best.


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InnovationRaytheons innovative, effective technologies, CMMI excellence and trusted relationshipsprovide their customers with Mission assurance performance for their changing operationalneeds. Technologies are continuously updated based on customer feedback.

Focus on coreIn an effort to lower costs, companies have focused internally on identifying their corecompetencies, often outsourcing products that are neither strategic nor competitive from a coststandpoint. Raytheon controlled what they can control.

Six sigmaSix Sigma initiative has been designed to improve processes and eliminate waste in an effort tomanage internal cost. The company has realized significant savings from increased processefficiency.

Commitment to social responsibilitySignature MathsMovesU program has now touched lives of more than 3 millions students,teachers and parents

Achieved greater deal on project milestonesBenchmarking: Information collected from internal, external and six sigma resultsProcess: Develop new process based on the results of benchmarkingTools and templates: Developed for various tasks such as supplier selection, cost models etc.,Pilot program: Various pilot programs were developed and testedIncorporation of lessons learned: Lesson learned database were created and being usedTraining: Functional, process training and customer trainings have been conductedCommunication plan: Robust communication plan has been established and disseminated


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Particulars 2003 2004 2005 2006 2007 2008 2009 2010 2011Bookings ($millions) 22693 25700 24828 22417 25498 26820 25058 24449 26555Backlog ($millions) 27542 32543 34419 33838 36614 38884 36877 34551 35312Net Sales ($millions) 18109 20245 21894 19707 21301 23174 24881 25183 24857

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Particulars 2003 2004 2005 2006 2007 2008 2009 2010 2011Operating income ($millions) 1313 1388 1687 1944 2328 2596 1894 2077 2086Net income ($millions) 365 417 871 1187 1474 1719 1977 1843 1897Cash flow fromoperations ($millions) 2600 2100 2500 2477 1249 2036 2200 1900 2700

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Particulars 2003 2004 2005 2006 2007 2008 2009 2010 2011

EPS ($) 1.29 0.99 2.08 2.63 3.31 4.06 4.79 5.51 5.90Dividend pershare ($) 0.8 0.8 0.88 0.96 1.02 1.12 1.24 1.5 1.72

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Particulars 2003 2004 2005 2006 2007 2008 2009 2010 2011

ROI 2.21% 2.67% 5.75% 7.88% 9.95% 15.08% 16.13% 13.65% 14.65%Total Debt toEquity Ratio 80.67% 48.02% 41.38% 35.72% 18.08% 25.41% 23.45% 36.50% 55.22%

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Company/index 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011

Raytheon stock 100 132.20 139.80 187.57 219.50 188.34 195.15 179.54 195.95

S&P 500 Index 100 110.88 116.32 134.69 142.09 89.53 113.21 130.26 133.01

S&P Aerospace&Defense index 100 116.00 134.47 168.30 200.81 127.45 158.84 182.84 192.48

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Raytheon stock

S&P 500 Index

S&P Aerospace &Defense index


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In 2011 Raytheon once again delivered solid operatingresults. We capitalized on global market opportunities andsuccessfully managed the challenges of an evolvingeconomic environment both domestically andinternationally. Focused on the things that we couldcontrol and what we do best. We executed our strategy.We continued to implement efficiencies across thebusinesses, lowering our costs. We provided moreaffordable, innovative solutions to our customers.Our solid results speak to the execution of our strategy.

With some 8,000 programs and more than 15,000contracts, Raytheon is well positioned with a portfolio of depth and breadth spanning the five interconnecteddomains of air, land, sea, space and cyberspace.Raytheons commitment to CSR is stronger than ever. We

enhanced our international governance and complianceprogram which provided 29% of bookings for 2011 from81 countries.Our Vision, Strategy, Goals and Values: consistent andProven

William H. SwansonChairman and CEO

March 2012


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Adjusted EPS of $1.55 up 13%; EPS fromcontinuing operation was $1.41, up 18%Adjusted operating margin of 13.6%, reportedoperating margin of 12.4%Booking of $6.2 billion; net sales of 6.0 billion

Increased full year 2012 guidance for EPS andoperating cash flow from continuingoperations.


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