Presentation Transcript

1. Today’s Honeywell

   Company Overview Updated June2014 This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.
2. We are building a world that’s safer and more secure … more comfortable and energy efficient … more innovative and productive …
3. Honeywell $39.1B in sales 1,300 sites, 68 countries 131,000 employees Morristown, NJ headquarters Fortune 100 55% sales outside U.S. Performance Materials and Technologies Aerospace Automation and Control Solutions Transportation Systems Through March 5, 2014
4. Who Is Honeywell? Business Overview Great Positions In Good Industries (2013 Sales, $B) Honeywell developed the first autopilot flight controller (1914), first commercial weather radar system (1954), and first business jet turbofan engine (1975), and is still the leader in developing revolutionary technology for aerospace today. Honeywell is the leader in gas detection, fire systems, personal protective equipment, building controls, home comfort and security, and scanning and mobility. Aerospace $12.0B Automation And Control Solutions $16.6B Honeywell’s technology is used to produce more than 60% of the world’s gasoline, 67% of the world’s paraxylene (a precursor for polyester), and 85% of the world’s biodegradable detergents. Transportation Systems $3.8B Performance Materials & Tech $6.8B Honeywell pioneered automotive turbocharging 60 years ago and remains the industry leader launching, on average, 100 new turbo applications globally each year. Highly Diversified, Technology Driven Industrial Company
5. Energy Efficiency and Clean Energy Generation With nearly 50% of our products linked to energy efficiency, Honeywell is helping the world meet its energy challenges. Air Traffic Modernization Biofuels Low Global Warming Refrigerants Green Buildings By immediately and comprehensively adopting existing Honeywell products,the U.S. could reduce energy consumption20 to 25%. Industrial Process Efficiency Fuel-efficient Turbochargers Demand Response, & Smart Grid Energy Performance Contracts
6. Safety & Security Honeywell is the leader in commercial, industrial, residential, and homeland safety and security solutions. Experion® Process Knowledge System Biometrics Gas Monitoring & Detection Honeywell Instant Alert® Honeywell is synonymous with flight safety, thanks to world-class products that provide superior situational awareness. Spectra fiber is 15 times stronger than steel but light enough to float. Personal Protective Equipment MEMS for Navigation SmartView™ Synthetic Vision System Spectra ® Fiber
7. Expanding Global Wealth Per Capita Honeywell is developing solutions that support growing infrastructure and improve the quality of life for people around the world. The growing middle class is expected to grow from 1.8 to almost 5 billion people by 2030.
8. Customer Productivity Honeywell solutions help our customers be better, faster, and more efficient. Wireless Sensors In-flight Productivity OneWireless™ Mobile Control Room Manufacturing Execution Systems Honeywell is an industry leader in wireless and scanning technologies, used in home, commercial, and industrial applications. Industrial Scanning & Mobile Computers Retail Scanning Performance Packaging Films Demand Response Thermostat Systems
9. Our Performance Sales Segment Margin Rate $39.1 $37.7 $36.5 16.3% 15.6% 14.7% $32.4 13.9% 13.3% $30 $ billions 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Total Shareholder Return Honeywell vs. S&P 500 Honeywell delivered over the past five years, outperforming and evolving in a slow-growth global economy. 249% 47% 32% 104% One Year (2013) Ten Year
10. New Five-Year Plan Sales (in Billions) Segment Profit/Margin We’re excited about our future. By being smart and focusing on flawless execution, Honeywell is positioned to meet our new long-term targets.
11. Recognition in 2013 Honeywell received more than 100 business & industry awards. HR Executive of the Year Top-tier media highlighted Honeywell’s success and leadership.
12. Honeywell’s Businesses Performance Materials and Technologies Automation and Control Solutions Transportation Systems Aerospace Phoenix, AZ headquarters $12 billion sales Minneapolis, MN headquarters $16.6 billion sales Morristown, NJ headquarters $6.8 billion sales Rolle, Switzerland headquarters $3.8 billion sales
13. Aerospace Our mechanical and electrical product offerings are used today on virtually every commercial and defense-related aircraft platform. We innovate and integrate thousands of products and services to advance and easily deliver safe, efficient, productive, and comfortable experiences worldwide. Businesses: Air Transport & Regional Business & General Aviation Defense & Space $12 billion sales Technologies: Integrated avionics and communications systems Propulsion and mechanical systems and components Conditioned-based maintenance, logistics, and flight management services Full-service solutions for airliners, business and general aviation aircraft, military aircraft, rotorcraft, and spacecraft Solutions: Runway safety Flight safety Air Traffic Management In-flight connectivity Propulsion Precision guidance Predictive intelligence Wheels and brakes Logistics services
14. Automation and Control Solutions Our products and solutions give customers the ability to capture more and better data faster and across a wireless landscape, improve productivity, safety, and security, drive better decision making, and reduce costs. We are at work in 150 million homes, 10 million buildings, 5,000 industrial facilities, and hundreds of gas and electric utilities worldwide. Businesses: Building Solutions Environmental and Combustion Controls Life Safety Security Group Scanning and Mobility Sensing and Control $16.6 billion sales Technologies, Solutions, and Services: Building control systems; energy management and services Home comfort; building controls; combustion; wiring devices Fire alarm systems; gas detection; personal protective equipment; remote health monitoring Alarm systems; access control/video; low-voltage distribution (ADI); cable and custom electronics Automatic identification and data collection Sensors; switches; mission-critical applications
15. Performance Materials and Technologies A global leader in developing and manufacturing advanced materials and process technologies, which are used every day in a wide range of industries and applications, from petroleum refining to environmentally friendlier refrigerants to bullet-resistant vests. Businesses: Honeywell’s UOP Fluorine Products Resins and Chemicals Specialty Products Electronic Materials Process Solutions $6.8 billion sales Technologies: Process technology, equipment, catalysts, adsorbents, and services for the refining, petrochemical, and natural gas industries Fluorine technology, including non-ozone-depleting and low-global-warming-potential refrigerants and blowing agents Specialty films, additives, and chemicals Advanced fibers and composites for armor and industrial applications Intermediate products, including nylon feedstock caprolactam, nylon resin, ammonium sulfate fertilizers, and chemical intermediates Electronic materials and chemicals Control systems for continuous-process industries; advanced solutions
16. Transportation Systems From turbochargers enabling fuel-saving and emission-reducing engines to safety-enhancing brake materials, our technologies improve the performance, safety, and efficiency of passenger and commercial vehicles worldwide. Businesses: Turbo Technologies Friction Materials $3.8 billion sales Technologies: Turbochargers for passenger vehicles (gasoline, diesel, CNG, and hybrid), medium- and heavy-duty trucks, and off-highway, heavy-duty equipment Braking materials and brake pads for cars, commercial vehicles, and rail applications
17. Honeywell’s Operating Model
18. The Honeywell Business Model Great Positions In Good Industries Acquisitions Are Incremental Bolt On Or Consistent Business Model Balance Long / Short Cycle Early / Mid / Late Cycle Globalization Opportunity One Honeywell Culture 5 Initiatives / 12 Behaviors Management Resource Review Rigorous Business Review Process CEO Interviews Top 200 Roles Trick Is In The Doing The Machinery Needs To Work Go Slow To Go Fast Achieve Two Seemingly Conflicting Things Foundational Tools Six Sigma, Cycle Time ERP, 100% of Engineers at CMMI Level 5 in 2015 Innovation Mindset Breakthrough Ideas Every Year Portfolio Applied To HOS Gold: Honeywell Operating Model VPDTM: Velocity Product Development FT: Functional Transformation OEF: Organizational Effectiveness HUE: HON User Experience Processes Consistent Business Model That Applies Effectively To Every Honeywell Business … And Generates Results
19. HOS Gold Growth Productivity And VPDTM Bronze+ Maturity HOS Bronze+ Maturity HOS Gold 60 130 VPDTM Units 270 Plants Enterprises Breakthrough Technologies Continuous Improvement Culture Innovative Market Leading Products Consistent, Predictable Results HUE Best In Class Experiences Cross-Functional Engagement Building Blocks One HON Culture Optimized Portfolio Best In Class Processes Targeting The Sweet Spot Of Growth And Productivity
20. HOS Gold Execution What It Means? What Does It Take? Continuous Improvement Beyond The Four Walls Of The Factory Driving Sustainable Improvements Best In Class Execution Comprehensive Enterprise Approach VPD™ Plays A Key Part Measured By Quartile (Top/Bottom 10) Maturity Based On SBG Specific Metrics Technology Leadership Councils Driving New Product Value And Speed Cross-Functional Engagement Incorporates SIOP Process, Pricing, Commercial Excellence General Management Ownership Order To Cash: Customer Demand To Delivery NPI: End-To-End Product Life Cycle Integrated With Business Strategy Prerequisite: 100% VPD™ Bronze – All LOBs 70% Conversion Cost HOS Silver Broad Based Maturity Assessment Performance Criteria: Sustained Best-in-Class Financial Performance Relative Comparison To Macros/Peers Proven Customer Experience Improvement Deliver And Sustain Exceptional Performance Through Continuous Improvement Measured By Key Financial Metrics HOS Gold = Executing The HON Operating Model
21. The Five Initiatives Growth faster than served markets Productivity driving margin expansion Cash reinvestment, shareholder return People the ultimate differentiator Enablers common tools and processes
22. The Enablers Honeywell Operating System Processes for safety, quality, delivery, cost, and inventory excellence, which can provide a 20-year competitive advantage. Velocity Product Development™ Integrated strategies, processes, tools, and culture thathelp us bring profitable products that customers need and want, and are willing to pay for, to market faster. Functional Transformation Standardizes the way we work, reducing waste and helping us to do things better and faster at a lower cost. Honeywell User Experience (HUE) Understandsthe needs of our users, customers, and employees so that we design intuitive, desirable, and differentiated end-to-end in customer products, services, or internal company systems. Enablers common tools and processes
23. Honeywell User Experience
24. Technology and Innovation Developing solutions for the world’s toughest challenges 21,600 technologists worldwide 116 research & engineering facilities 34,000 patents granted or pending
25. Sustainable Opportunity Making our businesses more environmentally friendly, safer, and more sustainable >30% reduction in our greenhouse gas emissions* >20% increase in our energy efficiency* >100% better safety record than our industry averages By 2017, Honeywell will reduce greenhouse gas emissions by 15% per dollar of revenue from 2011 levels. *2007-2011
26. Honeywell Hometown Solutions Housing & Shelter Family Safety & Security Science & Math Humanitarian Relief Habitat & Conservation FMA Live! 350,000 students in 933 middle schools Honeywell Educators @ Space Academy 1,973 teachers from 45 countries and 50 U.S. states since 2004 Honeywell Leadership Challenge Academy 1156 students from 47 countries and 36 U.S. states since 2010 Currently completed 494 rehabilitation projects in North America Since 2003, more than 15,500 Honeywell volunteers have repaired homes, schools, and non-profit centers in 42 Honeywell communities in the U.S., Canada, Mexico, and Puerto Rico. Safety & abduction prevention programs in the U.S. and China 72,000 U.S. schools Every third grade class in the U.S. 640,000 students at 758 schools in 11 cities $9 million in aid since 2001 750 homes, 3 schools, 9 medical clinics, elder community center, and 200 wells repaired or rebuilt Responded to Typhoon Haiyan in the Philippines, Hurricane Sandy, wildfires in Colorado Springs, the earthquake and tsunami in Japan, earthquakes in China and Haiti, and flooding in Calgary Honeywell Institute for Ecosystems Education 309 gifted and talented students since 2010 74 teachers participated and reached 9200+ students since 2011 Honeywell Green Boot Camp 210 teachers since 2008
27. Great Positions in Good Industries Aviation & Defense Automotive & Transportation Buildings, Construction & Maintenance Chemicals, Specialty Materials & Fertilizers Consumer & Home Efficiency, Energy & Utilities Fire Protection & First Responder Healthcare & Medical Industrial Process Control Manufacturing Natural Gas, Refining, Petrochemicals & Biofuels Safety & Security Scanning & Mobile Productivity Energy Efficiency, Clean Energy Generation, Safety & Security, Expanding Global Wealth Per Capita, and Customer Productivity