Why ASEAN?INTRODUCTIONBriand Greer

19 October 2016

Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.

HGR 1.0: BUILDING A SOLID FOUNDATION

Honeywell Presence Across High Growth Regions

1

Addressing Demand In The World’s Fastest Growing Economies Through Innovative

Local Products & Solutions, Focusing On The Mid Segment And Key Verticals

140+ Offices & Labs

70+ Manufacturing Facilities

55K+ Employees

Expand HON Presence In

Africa

New Frontier In Central And

South America

Region

12K+Engineers

1,500+Patents Awarded

4,000+Patents In

Application

Right & Fast New Product Introduction tailored to High Growth Regions

Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.

CHANGING GLOBAL COMPETITIVE LANDSCAPE

Imperative To Become THE Chinese Competitor

China Alone Is Home To 95 Fortune 500Global Economic Power Shift To The East

Net Change of Company

# by Home CountryGlobal Fortune 500 (‘04-’14)

+ 84Greater China

Other HGRs + 25

USA - 61

Japan - 25

Other Developed - 23

Chinese Competitors Gaining Scale & Global InfluenceGrowth Curve*

Local LeaderMid SegmentCompetitor

Global Challenger

Maturity$30M(HA)

$360M(HSM)

$36M (HFS)

$166M(HPS)

$40M(ECC)

$80M(HSP)

Scal

e

$100M(HTT)

$593M(AERO)

$1.2B(HSG)

$46B

$33B

$70M(ECC)

$56B(AERO)

$M Revenue in 2014

(HPS) (competing SBUs)

$12B

$60M(HBS)

$521M(HPS)

*2013 Data; HikVision annual reports

$9B$31B

(AERO)

$1.7B*(HSG)

Source: Fortune magazine

Note: only representative local competitors are illustrated here

Beijing

52

Hong Kong 4

Shanghai

8

Shenzhen 4

Tangshan

1

Tianjin

2

Changchun

1

Anshan

1

Guangzhou 2

Guixi

1

Fuzhou

1

Jinan

1

Binzhou

1

Jincheng

1

Zhangjiagang

1Hangzhou

2

Datong

1

Shijiazhuang

1Yangquan

1Taiyuan

2

Zhengzhou

1Xi’an

1Wuhan

2

Nanjing

1

Changzhi

1

Xingtai

1

Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.

China: Still The Global Growth Engine

3

$2.2T $2.6T $2.6T

China (2011-2015)

China(2016-2020)

US+UK+GER+JP (2016-2020)

Incremental Real GDP Growth

+7.4% +6.4% +2.1%

Source: IHS Global Insight (Apr, 2016)

REAL GDP CAGR

Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.

Why We Win In China?

4

Becoming the Chinese Competitor Mindset To Be A

Local Company‒ Local Empowerment

‒ Right & Fast Decision Making

‒ Culture Of Belonging To Attract And Retain Top Talent

‒ Rooted In Chinese Economy And Entrepreneurial Soil Established R&D And Manufacturing Foundation Early

On‒ Local Capabilities Before Chinese Competitors Matured

‒ Strong Cost Position

‒ China As HGR Innovation Engine

The Trick Is In The Doing‒ Stay Consistent On Core Strategy

‒ Communicate And Over Communicate

‒ Drive Operational Excellence (HOS Gold, 6 Sigma)

‒ Approach As ONE Honeywell

Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.

ASEAN Overview

5

Stable, Growing Economies In Attractive End Markets

Honeywell Presence / Capabilities

• ~3,500 Employees (Sales, Marketing, Engineering & Other)

• 17 Sales And Services Offices

• 6 Manufacturing Sites

- Malaysia (Avionics, UOP Separex, MK Electric)

- Thailand (Electronic Materials)

- Indonesia (Footwear, Avionics)

What We’re Seeing

Middle Class

Population In

2020

400M

6.7%5.8%

4.8% 5.0%

2.8%

6.2% 5.9%4.9%

4.2%

2.7%

Vietnam Philipines Indonesia Malaysia Thailand

Real GDP YoY Growth• Macro Trends

- Rapid Urbanization Around Capitals

- Young, Tech Savvy, Aspirational Demographics

- Diversification From Agriculture And Resources

- Low Crude Prices Helping Thailand And Philippines

- Strong FDI Inflows Into Region

- Pro-Business Policies Implemented / In-Progress

• Geopolitical Environment

- Trans-Pacific Partnership And Regional Comprehensive

Economic Partnership Are Positive Drivers For Growth

- More Trade / Investment Between ASEAN Countries Through

ASEAN Economic Community Framework

• Regional Opportunities

- Transportation And Power Infrastructure

- Refineries And Gas Plants In Vietnam And Indonesia

- High-Rise Residential, Offices, Mix-Use

- Urban Middle Class Driving Demand For LCCs, Plastics,

Security, Logistics And Retail Productivity

- Significant Infrastructure Investments And PPP

2016E

2015A

Source: Global Insight May 2016

Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.

High Growth Regions: Driving For World Class Performance

6

Leap Forward From HGR 1.0 To HGR 2.0

HGR Fundamental To

HON Story

Continue To Implement

Strategies To Win In Mid

Segment

Develop Key Verticals,

Follow-The-Growth Of

Key Clients

Drive Breakthroughs Via

New Technologies &

Software

Enter Into Adjacent /

New Markets Through

Partnership & Strategic

Investment

Achieve Greater

Operational Efficiency

BCC (R&D, Supply Chain, Sales & Distr.)

Capabilities

Core

Strategies

Financial Financial Performance

Mid Segment – E4E & E2R

Follow-The-Growth

Verticals

Breakthrough / M&A

CompetitiveFoundation Local Adoption World Class

1 2 3 4 5 6 7 8

Geographic Expansion

Channel and Distribution

Strategic Pursuits / Partnerships

Branding

Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.

Bringing High Growth Regions To The Next Level

7

Winning In The World’s Fastest Growing Economies

HGR 2.0

IOT

Software

Partnership

People

Strategic

InvestmentBreakthrough

Technology

Verticals

E2R

Follow

The

Growth

E4E

Branding

NPI Mid

Segment

HOS

M&A

BCC

Cloud