Letter from Thomas A. Kennedy, Chairman and CEO

Letter from Thomas A. Kennedy, Chairman and CEO

Boys & Girls Clubs of America CEO Jim Clark, Raytheon Chairman and CEO Thomas A. Kennedy, youth emcee Desha J., 11th Wing and Joint Base Andrews Commander Colonel Bradley Hoagland, and Vincent Eure, 11th Force Support Squadron youth programs director, open the STEM Center of Innovation at Joint Base Andrews Youth Center, Maryland in June 2016.

Dear Raytheon Stakeholders,

Raytheon has a proud legacy of developing advanced technologies to support the missions of our customers around the world. By drawing upon our strengths as one global team, we create trusted, innovative solutions to make the world a safer place.

This vision, and our values that emphasize trust, respect, collaboration, innovation and accountability underpin our corporate responsibility efforts. Over the years, Raytheon's board of directors and senior leadership team have worked hard to meet our commitments to customers and shareholders. We also approach corporate responsibility strategically by pursuing efforts that really make a difference and have a lasting impact for our many stakeholders in the communities where we live and work.

Engineering a Safer World
Raytheon's technologies provide for the safety and security of those around the world in ways big and small. Our satellite sensors help forecasters predict and warn the public of deadly storms. Our missile-defense systems help nations around the world protect their people and sovereignty.

Our commercial cyber business, Forcepoint, is an example of how we're applying defense-grade technology to provide for a cyber-secure world. We launched Forcepoint in 2015 to help businesses protect sensitive data, giving them — and their customers — the kind of protection we've provided to government agencies for years.

Supporting our Planet and Partners
We're not only proud of what our products do, we're proud of the way we build them. Our "design for sustainability" philosophy seeks to reduce the environmental impact of our products and the facilities that we build them in. This strategy reduces compliance risks and lowers ownership costs for our customers.

To that end, in 2016 we established a set of 14 ambitious five-year sustainability goals in a variety of areas including energy, water, greenhouse gas emissions, waste recycling and supplier sustainability.

We've also extended this philosophy to our suppliers, since they are key to all we do, by working with them on several initiatives to integrate principles of sustainability into our supply chain. In addition, we are committed to supplier diversity and a program that helps small and minority-owned businesses.

Helping Military Families
Raytheon is especially honored to support military families and veterans. Members of the military depend on our products to complete their missions and return home safely. We understand their sacrifices and want to help them flourish in their careers, their education and their family life.

In 2016, Raytheon partnered with the Boys & Girls Clubs of America® to open six Centers of Innovation that serve military communities. We also expanded our partnership with the Student Veterans of America®, awarded scholarships, mentored veterans entering the civilian workforce and participated in dozens of volunteer programs aimed at helping military families.

Cultivating Future Innovators
Our success as a company depends on providing an environment where our people can reach their fullest potential. We seek out employees with diverse backgrounds and ways of thinking since they are key to innovation.

To retain and attract our workforce and protect our business, we work hard to uphold the highest ethical standards, encourage inclusion, foster lifelong learning and keep our employees safe and healthy. We demand, and reward, trust and collaboration. Both are important to our performance and success.

We are all very proud of our company and the work we do.

As you read this report, I hope you'll get a sense of our optimism and commitment. Raytheon has the skills to solve some of our customers' toughest problems and a sense of responsibility to protect the things that matter most. Those, we believe, are the secrets to engineering a safer world.



Thomas A. Kennedy
Chairman and Chief Executive Officer
Last Updated: 12/02/2017