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AUTOMATION AND CONTROL SOLUTIONS

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Page 1: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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AUTOMATION AND CONTROL SOLUTIONS

Page 2: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

2

Honeywell

Aerospace

Automation and Control Solutions

$38.8-39.3Bin sales*

*2013 guidance, April 2013

54%sales outside U.S.

Performance Materials and Technologies

Transportation Systems

• 1,300 sites, 70 countries

• 132,000 employees

• Morristown, NJ headquarters

• Fortune 100

Page 3: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

3

Honeywell’s Businesses

AerospacePerformance Materials and Technologies

Transportation Systems

Automation and Control Solutions

Phoenix, AZ headquarters

$12.1-12.3 billion sales*

Minneapolis, MN headquarters

$16.4-16.6 billion sales*

Morristown, NJ headquarters

$6.9-7.0 billion sales*

Rolle, Switzerland headquarters

$3.6-3.7 billion sales*

*2013 guidance

Page 4: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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Automation and Control Solutions (ACS)

PRODUCTS

BUILDINGS

18% 18%

22%

4%

4%19%

15%

Scanning& Mobility

BuildingSolutions

Security Group

Sensing and Control

Life Safety

SOLUTIONS Environmental andCombustion Controls

ProcessSolutions

BUILDINGSACS 2012

Sales $15.9B

19%17%

20% 3%

5%

20%

16%

• Diverse Portfolio Aligned to Key Macro Trends

• Leading with NewProduct Innovation

• Demonstrated Ability to Beat Competition

• Strong Momentum, Winning in Market

>75,000 Employees Serving 1 Million Customers

Page 5: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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Impressive ACS Growth Story

2003 2012

$7.5

$15.9

2003 2012

$0.8

$2.2

2003 2012

($B) ($B) (% of Sales)

ACS Performs In Good And Bad Times

~3X Growth

~2XGrowth

+280 bps

Sales Segment MarginSegment Profit

11.3%

14.1%

Page 6: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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What We Do Go To Market Key Drivers

Honeywell Life Safety

• 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

Mark Levy

President

Leading Provider Of Safety Solutions

Page 7: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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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

Tony SugalskiPresident

Honeywell Sensing and Control

Leading Supplier Of Sensors & Switches For Mission-Critical Applications

Page 8: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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Honeywell Scanning & Mobility

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

John WaldronPresident

Complete Player In AIDC, Addressing All Major Markets

Page 9: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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Honeywell Security Group

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

Ron RothmanPresident

Leading Provider Of Security Solutions

Page 10: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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Environmental and Combustion Controls

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

Beth WozniakPresident

Leading Position In Comfort & Energy Efficiency

Page 11: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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Honeywell Building Solutions

What We Do Go To Market Key Drivers

• Airports

• Education

• Health Care

• Transportation

• Government

• Military

• Energy Efficiency

• Increasing Energy Prices

• Integration to Lower Cost and Increase Functionality

Paul OrzeskePresident

• Install and Service Building Control Systems

− HVAC, Fire, Security

• Large, Complex, Integrated Projects

• Energy Service Performance Contracting

• Demand Response/Smart Grid

Outstanding Position In Energy Efficiency

Page 12: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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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

Darius Adamczyk President

Honeywell Process Solutions

Leading The Way For One Honeywell Solutions

Page 13: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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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

ACS Core Strategies Unchanged

Proven Formula: Consistent Strategy And Execution Driving Growth

Page 14: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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Great Positions In Good Industries

Segment Position Market Drivers

Home Comfort Controls 1 Energy Savings, Productivity

Building Controls 1 Energy Efficiency, Emissions Legislation, Safety

Residential Combustion 1 Energy Savings, Comfort, IAQ

Security 1 Security, Productivity, New Technology Adoption

Fire Systems 1 Safety, Codes and Regulations, Comm. Construction

Personal Protective Equipment 1 Safety, Codes and Regulations, Cost of Incidents

Gas Detection 1 Safety, Codes and Regulations, Industrial Production

AIDC – Scanning and Mobility 2 Productivity, New Technology Evolution

Process Solutions 2 Safety, Security &Energy Efficiency, Installed Base

Building Solutions 2 Energy Efficiency, Sustainability, IT Convergence

Sensing 3 Safety, Construction, Healthcare Innovations

Growing Leadership Positions

Page 16: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E3,000

6,000

9,000

12,000

15,000

18,000

100

200

300

400

500

600

700

Innovation: Lifeblood For ACS GrowthS

ale

s /

HC

Ne

w P

rod

uc

ts

SalesNew ProductsR&D Headcount

Accelerating Scale And Speed Of New Product Introductions

Powerof VPD™

• R&D Investment Up 90%• Resources Up 125%

• Cycle Times Reduced 40%• NPI Up ~3X

New Products - #1 Driver Of Honeywell Growth And Profitability

Page 17: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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Growth Driver: Acquisitions

Acquisitions

BuildingControls

Energy/Smart Grid

Position Before

Position Today

EV/EBITDAHeadline

EV/EBITDAExpectation

#1 #1 ~12x ~5x

New Market #1 ~15x ~2x

PersonalProtection

Gas Detection

IndustrialCombustion

AIDC

Building Great Positions In $50B High Growth Industries

None #1 ~11x ~6x

None #1 ~12x ~4x

None #2 ~7x ~5x

None #2 ~13x ~5xpending

En

han

ced

Co

reN

ew A

dja

cen

cies

Page 18: 1 AUTOMATION AND CONTROL SOLUTIONS. 2 Honeywell Aerospace Automation and Control Solutions $38.8-39.3B in sales * *2013 guidance, April 2013 54% sales

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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