October 15, 2013 Integrated Approach to Driving Diversity & Inclusion at Rockwell Collins Providing Thought Leadership in Support of Corporate D&I Strategy & Goals

Diversity Business Case Diversity Business Case CBT 2/1/2007 11:02 AM Diversity Business Case Our employees must reflect the changing demographics to meet the needs and expectations of a global economy. Establishing a diverse, talented and motivated workforce increases our ability to develop innovative solutions by embracing diversity of thoughts, opinions, backgrounds and styles. To compete in an ever-changing global marketplace, our diverse workforce will position us for future opportunities. As part of the company’s Value Proposition for People, which includes values, goals and a strategic framework for our organization, focusing on diversity assist us in recruiting, retaining, rewarding and developing a talented and motivated group of people. Diversity has an impact on business innovation and productivity. In fact, Fortune magazine’s list of “diversity elite leadership” companies have been found to outperform the Standards and Poor. At Rockwell Collins, the Diversity Business Case is threefold, first, we want to make sure that our employees reflect the changing demographics to meet the needs and expectations of a global economy; second, establishing a diverse, talented and motivated workforce increases our ability to develop innovative solutions by embracing diversity of thoughts, opinions, backgrounds and styles; and lastly to continue to compete in an every-changing global marketplace, our diverse workforce will better position us for future opportunities. Now, let’s go over these in more depth.

Definitions of Diversity and Inclusion Diversity Difference such as race, gender, work and educational background, sexual orientation, learning styles, interpersonal traits, personal beliefs, age, geography, lifestyles and physical attributes. Inclusion Creating an environment where everyone feels appreciated, valued and welcomed. Valuing every individual.

Diversity and Inclusion Strategic Framework Diversity and Inclusion Overview Diversity and Inclusion Strategic Framework People Workplace Marketplace Diversity Advisory Council Employee Resource Groups Mentoring Branding Strategic Partnerships Supplier Diversity Training Workforce Planning Philanthropy Executive Diversity Council Retain Develop Attract

Diversity without Inclusion Inclusion without Diversity Transformative Performance Diversity (Who) Inclusion (How) Diversity without Inclusion Decreases collaboration Reduces productivity & performance Increases barriers Decreases innovation Inclusion without Diversity Relies on sphere of comfort Rewards status quo thinking Decreases disruption

Roles and Responsibilities Chief Diversity Officer Exec Diversity Council Diversity Council Diversity Office CEO Senior Leadership Council Members (direct reports of the CEO) Executive Chairs and Vice Chairs of the ERGs Diversity & Workforce Effectiveness Team Influences, endorses, promotes and monitors corporate diversity strategy both internally and externally Reviews and approves diversity initiatives Develops, generates, and recommends diversity plan to EDC Leads, drives, and develops diversity plans and initiatives. Integrates diversity in all of HR and Business processes Sets and oversees the strategic direction of the diversity strategy Chairs the EDC Facilitates approval of the diversity initiatives Speaks publicly on diversity Hosts annual diversity event Mentors a cross cultural employee Sponsors 2 speed mentoring events for diverse populations annually Approves diversity initiatives Oversee progress of initiatives Bring new ideas to add to initiatives Be a source for people in organization and address specific BU/SS concerns Implementation of diversity strategy within specific BU/SS Sponsors an Employee Resource Group Constructs and develops ERG diversity plans Implement diversity initiatives within BU/SS Track the success of diversity initiatives Serves as BU/SS diversity champions and change agents Serves as corporate thought leaders on diversity (benchmarking & bring ideas forward) Serves as internal diversity consultants Facilitates the process to construct and develop plans Provides implementation support Drives communication on diversity Oversees diversity training plan Tracks and reports on diversity scorecard measures Coordinates with corp giving Drive/ Lead ERG activities Organizes annual diversity events

Purpose of Employee Resource Groups Diversity and Inclusion Overview Purpose of Employee Resource Groups Attract - Assist with Recruiting Engage - Support Employee personal and professional development Retain - Build Relationships (internal, customers, community) Current Employee Resource Groups African American Professionals Forum Disability Network Group and Supporters Friends of Asia Employee Resource Group Latino Employee Network Military and Veterans Employee Resource Group New Hire Employee Network Pride Employee Resource Group Women’s Forum Employee Resource Group

Employee Engagement Enterprise-wide Learning Events Education & Awareness Heritage Month Events Culture & Respect Community Involvement Leadership & Ownership Speed Mentoring Growth & Development

The D & I Learning Continuum Inclusive Behaviors Valuing difference as a competitive edge Diversity of Thought Building a Culture of Openness Appreciation and valuing Taking Ownership of Diversity and Inclusion (ILT) Acceptance and respect Learning Roadmap Understanding Understanding Diversity and Inclusion (CBT) Awareness Leading Diversity (ILT & Leader Led Discussion) Business Case for Diversity (CBT) Affirmative Action (CBT) Exclusive Behaviors 9

Strategic Partner Model Our Strategic Partners Include: National Organization on Disability (NOD) Out and Equal Great Minds in STEM or HEENAC National Society of Black Engineers (NSBE) Women in Engineering ProActive Network (WEPAN) National Action Council on Minorities in Engineering (NACME) Society of Women Engineers (SWE) Student Veterans of America (SVA) The PhD Project

Measures of Success and Accountability Corporate Diversity Scorecard & Business Scorecards Retention Development Leadership Engagement Supplier Diversity Affirmative Action Voice of the Employee Survey Satisfaction Engagement Index Diversity Index Performance Reviews Integration

Back-up

Diversity Business Case CBT 2/1/2007 11:02 AM Diversity Strategy People Recruit, Retain, Develop and Advance diverse talent Workplace An environment that encourages and accepts a free exchange of ideas and perspectives Marketplace Diversity Providing innovative solutions to best serve customers and other stakeholders In order to become a more successful global, integrated company, we need a growth strategy that can attract, retain, and engage diverse talent. To do this, we focus on the implementation strategy for the diversity business case. The diversity strategy is built on three components: People, Workplace and Marketplace. Our people component focuses on approaches to recruit, retain, develop, and advance all talent. This includes creating a diversity sourcing strategy focusing on minority and female institutions and national organizations, launching of employee networks and creating opportunities for skills development which leads to greater opportunity for advancement. Our workplace component focuses on building an environment that encourages and accepts a free exchange of ideas and perspectives. For example, reviewing and enhancing policies, practices and procedures accordingly while providing education and awareness for all employees and leaders. Our marketplace component focuses on ways to provide innovative solutions to best serve customers and other stakeholders. Now that you know why it was imperative for Rockwell Collins to embark on this journey, it’s time for you to review what you’ve just learned Build as in original with photos of people and words below –slide 13 of http://www.elallc.net/development/div_course_v2/