AUTOMATION AND CONTROL SOLUTIONS
$38.8-39.3B 54% Honeywell Performance Materials and Technologies in sales* 1,300 sites, 70 countries 132,000 employees Morristown, NJ headquarters Fortune 100 54% sales outside U.S. Performance Materials and Technologies Aerospace Automation and Control Solutions Transportation Systems *2013 guidance, April 2013
Honeywell’s Businesses Performance Materials and Technologies Automation and Control Solutions Transportation Systems Aerospace Minneapolis, MN headquarters $16.4-16.6 billion sales* Phoenix, AZ headquarters $12.1-12.3 billion sales* Morristown, NJ headquarters $6.9-7.0 billion sales* Rolle, Switzerland headquarters $3.6-3.7 billion sales* *2013 guidance
Environmental and Combustion Controls Automation and Control Solutions (ACS) SOLUTIONS Environmental and Combustion Controls Diverse Portfolio Aligned to Key Macro Trends Leading with New Product Innovation Demonstrated Ability to Beat Competition Strong Momentum, Winning in Market Building Solutions 18% 17% 18% 19% ACS 2012 Sales $15.9B 15% Security Group BUILDINGS BUILDINGS 16% 20% 19% Process Solutions 5% 4% Scanning & Mobility 3% 4% 20% Sales HSG 6% ECC 17% HLS 20% HSM 5% S&C 3% HPS 20% HBS 19% ADI 10% 22% Sensing and Control Life Safety PRODUCTS >75,000 Employees Serving 1 Million Customers
Impressive ACS Growth Story Sales Segment Profit Segment Margin ($B) ($B) (% of Sales) +280 bps ~2X Growth ~3X Growth 14.1% 11.3% ACS Performs In Good And Bad Times
Multi-Brand, Multi-Channel Honeywell Life Safety Mark Levy President What We Do Go To Market Key Drivers Fire Alarm Systems Gas Detection Personal Protection Life Care Dealers/Integrators HBS and HPS Distribution, including: ADI Personal Safety Codes and Regulations Increasing Cost of Incidents Multi-Brand, Multi-Channel Leading Provider Of Safety Solutions
Honeywell Sensing and Control Tony Sugalski President What We Do Go To Market Key Drivers Sensors Pressure Temperature Flow Position Safety and Limit Switches Designed into: Medical Aerospace Transportation Industrial Test & Measurement Channels Direct to OEM Distributors Reliability Value/Performance Innovation Leading Supplier Of Sensors & Switches For Mission-Critical Applications
Honeywell Scanning & Mobility John Waldron President What We Do Go To Market Key Drivers Auto Identification and Data Collection Field Computing Global Tracking Retail Transportation and Logistics Health Care Field Service Ports Government Productivity Safety Security Complete Player In AIDC, Addressing All Major Markets
Honeywell Security Group Ron Rothman President What We Do Go To Market Key Drivers Residential and Commercial Intrusion Systems Access Control / Video Remote Access Solutions Low Voltage Distribution (ADI) National Security Companies Local Dealers/ Contractors System Integrators HBS / HPS ADI New Technology Adoption Peace Of Mind Loss Prevention Productivity ADI Is A Unique Competitive Advantage Leading Provider Of Security Solutions
Environmental and Combustion Controls Beth Wozniak President What We Do Go To Market Key Drivers Home Comfort Building Controls Combustion Home Furnaces Industrial Process Wiring Devices Lighting Controls Dealers, System Integrators Retail Distributors HBS OEM Comfort Energy Efficiency Safety Cost Performance Multi-Brand Strategy Leading Position In Comfort & Energy Efficiency
Honeywell Building Solutions Paul Orzeske President What We Do Go To Market Key Drivers Install and Service Building Control Systems HVAC, Fire, Security Large, Complex, Integrated Projects Energy Service Performance Contracting Demand Response/ Smart Grid Airports Education Health Care Transportation Government Military Energy Efficiency Increasing Energy Prices Integration to Lower Cost and Increase Functionality Outstanding Position In Energy Efficiency
Honeywell Process Solutions Darius Adamczyk President What We Do Go To Market Key Drivers Control systems for continuous process industries Design Install Service Advanced Solutions Simulation Optimization Refining / Petrochemical Pulp & Paper Oil and Gas Chemical Mining, Life Sciences Safety Productivity Energy Efficiency Increasing Regulation Leading The Way For One Honeywell Solutions
ACS Core Strategies Unchanged Great Positions in Good Industries Growth Culture / Sales Excellence Innovation Through Technology and NPI; With Focus on Human Factors Emerging Region Expansion and Globalization Leverage Core Initiatives & Processes to Improve Margins Continue to Grow Through Strategic Acquisitions Proven Formula: Consistent Strategy And Execution Driving Growth
Great Positions In Good Industries Segment Position Market Drivers Home Comfort Controls 1 Energy Savings, Productivity Building Controls Energy Efficiency, Emissions Legislation, Safety Residential Combustion Energy Savings, Comfort, IAQ Security Security, Productivity, New Technology Adoption Fire Systems Safety, Codes and Regulations, Comm. Construction Personal Protective Equipment Safety, Codes and Regulations, Cost of Incidents Gas Detection Safety, Codes and Regulations, Industrial Production AIDC – Scanning and Mobility 2 Productivity, New Technology Evolution Process Solutions Safety, Security &Energy Efficiency, Installed Base Building Solutions Energy Efficiency, Sustainability, IT Convergence Sensing 3 Safety, Construction, Healthcare Innovations Key safety sensor wins Growing Leadership Positions
X ACS Aligned To Global Macro Trends Wireless Life Safety - #1 Security - #1 1 P T + - Z A1 A2 5 Live 2 3 4 X Wireless Energy Efficiency - #1 Productivity - #2
Innovation: Lifeblood For ACS Growth New Products - #1 Driver Of Honeywell Growth And Profitability Sales New Products R&D Headcount Sales / HC Power of VPD™ New Products R&D Investment Up 90% Resources Up 125% Cycle Times Reduced 40% NPI Up ~3X Accelerating Scale And Speed Of New Product Introductions 16
Growth Driver: Acquisitions Building Controls Energy/ Smart Grid Position Before Position Today EV/EBITDA Headline Expectation #1 ~12x ~5x New Market ~15x ~2x Enhanced Core Personal Protection Gas Detection Industrial Combustion AIDC None #1 ~11x ~6x ~12x ~4x #2 ~7x ~5x ~13x New Adjacencies pending Building Great Positions In $50B High Growth Industries
ACS On the Road To Success Diversified, Balanced Portfolio Aligned to Key Global Macro Trends Investing for Growth and Profitability Focused on Our Customers and Execution Strong Momentum, Winning in the Market Positioned For Long-Term Growth