TODAY’S HONEYWELL · Atlanta, Georgia Businesses: Technologies: Building Technologies creates...

TODAY’S HONEYWELLUpdated November 2018

© 2018 by Honeywell International Inc. All rights reserved.

Forward Looking StatementsThis presentation 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 presentation 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.

Information regarding the impact of Tax Legislation consists of preliminary estimates which are forward-looking statements and are subject to change, possibly materially. Information regarding the impact of

Tax Legislation is based on our current calculations, as well our current interpretations, assumptions and expectations relating to Tax Legislation, which are subject to further change.

Non-GAAP Financial MeasuresThis presentation contains financial measures presented on a non-GAAP basis. Honeywell’s non-GAAP financial measures used in this presentation are as follows: segment profit, on an overall Honeywell

basis, a measure by which we assess operating performance, which we define as operating income adjusted for certain items as presented in the Appendix; segment margin, on an overall Honeywell basis,

which we define as segment profit divided by sales; organic sales growth, which we define as sales growth less the impacts from foreign currency translation, acquisitions and divestitures for the first 12

months following transaction date, and impacts from adoption of the new accounting guidance on revenue from contracts with customers that arise solely due to non-comparable accounting treatment of

contracts existing in the prior period; free cash flow, which we define as cash flow from operations less capital expenditures and which we adjust to exclude the impact of separation costs related to the spin-

offs of Resideo and Garrett, if and as noted in the presentation; and adjusted earnings per share, which we adjust to exclude pension mark-to-market expenses, as well as for other components, such as

separation costs related to the spin-offs, the 4Q17 U.S. tax legislation charge, and adjustments to such charge, if and as noted in the presentation. Other than references to reported earnings per share, all

references to earnings per share in this presentation are so adjusted. The respective tax rates applied when adjusting earnings per share for these items are identified in the presentation or in the

reconciliations presented in the Appendix. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our

ongoing operations and in the analysis of ongoing operating trends. These metrics should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Refer to the

Appendix attached to this presentation for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.


At Honeywell, we are bringing together the physical and digital worlds

to tackle some of the toughest business and societal challenges.

We specialize in the things that are critically connected.

Beyond smart phones and laptops, we make the connections

that keep cities working, planes flying, factories running, and workers safe.

THAT’S THE POWER OF CONNECTED.

THAT’S THE POWER OF HONEYWELL.

Connected Aircraft | Connected Building | Connected Plant

Connected Utilities | Connected Supply Chain | Connected Worker


Honeywell Overview

Aligned to Key Global Macro Trends

NYSE: HON | ~970 sites | ~110,000 employees | Morris Plains, N.J. headquarters | Fortune 100

AerospacePerformance Materials

and Technologies

Safety and Productivity

Solutions

Our products, software, and technologies are in more than 10

million buildings worldwide, helping customers ensure their facilities are safe, energy efficient, sustainable,

and productive.

We develop advanced materials, process technologies, automation solutions, and industrial software that are revolutionizing industries

around the world.

We improve enterprise performance and worker safety and productivity

with our scanning and mobile computers, software, warehouse

automation solutions, and personal protective equipment.

Our products are used on virtually every commercial and defense aircraft platform worldwide and include aircraft propulsion, cockpit systems, satellite communications, and auxiliary power

systems.

Building Technologies


Honeywell Performance: 2013-2018E

FREE CASH FLOW

$39.1B

$40.3B

$38.6B$39.3B

$40.5B

$41.75B

2013 2014 2015 2016 2017 2018E

SALES SEGMENT MARGIN

$4.97$5.59

$6.10$6.61

$7.15

$7.98

2013 2014 2015 2016 2017 2018E

ADJUSTED EARNINGS PER SHARE

$3.4B

$4.0B$4.4B $4.4B

$4.9B

$6.0B

2013 2014 2015 2016 2017 2018E(Adjusted)

All adjusted EPS figures exclude pension mark-to-market; 2016 EPS excludes 4Q16 debt refinancing; 2017 EPS excludes separation costs related to the spin-offs of GTX and REZI and the provisional charge related to tax

legislation; 2018E EPS excludes impacts from separation costs and adjustments to the 4Q17 U.S. tax legislation charge.

Adjusted FCF excludes impacts from separation costs related to the spin-offs.

Our reconciliations of non-GAAP measures to GAAP measures accompany this document and are also available at http://investor.honeywell.com.

16.3%16.6%

18.8%

18.3%

19.0%19.55%

18.9%Ex-M&A

2013 2014 2015 2016 2017 2018E

$41.7B - $41.8B 19.5% - 19.6%

$7.95 - $8.00$5.8B - $6.2B


Energy Efficiency and Clean Energy Generation

BiofuelsAir Traffic

Modernization

Low-Global-Warming

Refrigerants

Industrial Process Efficiency

Demand Response & Smart Grid

Energy Performance

Contracts

Green Buildings

Honeywell’s Sustainable

Opportunity Policy outlines the

Company’s commitment to health,

safety, and the environment:

ensuring a cleaner, safer, and

healthier future.

Honeywell invents and manufactures

technologies that address some of the

world’s most critical challenges around

energy, safety, security, productivity,

and global urbanization.

Clean Power & Fuels


Safety and Security

Honeywell equipment and

technologies can help keep an

emergency from becoming a

tragedy, and our security solutions

protect against emerging threats.

Industrial Process & Safety

Honeywell Instant Alert®

Personal Protective Equipment

SmartView™

Synthetic Vision System Spectra® Fiber

Cybersecurity

Gas Monitoring & Detection

Honeywell’s Enhanced Ground Proximity

Warning System has reduced Controlled Flight

Into Terrain (CFIT) accidents from ~1 in every

3 million flights to less than 1 in every 20 million.

Honeywell Personal and Industrial Safety

Equipment serve more than 500 million people

around the world daily.

Cloud-Based Notification, Emergency Messaging

Personal Protective Equipment

Intuvue™ 3D Weather Hazard & Avoidance System

Security & Fire Systems


Expanding Global Wealth Per Capita

Air Traffic Management

Smart Grid

Airport Solutions

Health and Safety

Refining Technologies

Petrochemical Technologies

Indoor Air Quality

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 increase from

1.8 billion to almost 5 billion

people by 2030.

Infrastructure Solutions


Worker Productivity

OneWireless™ Mobile Control Room

Industrial Scanning & Mobile Computers

Retail Scanning

Connected Warehouse

Space Optimization

Cockpit Systems

In-flight Productivity

Voice Controls

Honeywell solutions help

our customers’ workforces

perform more efficiently

and productively.

Honeywell is an industry leader in

wireless and scanning technologies

used in building and

industrial applications.


The Honeywell Portfolio

Industry-Leading Businesses Unified Across Common Platforms

Leveraging Core

Strengths …

… Across A

Diversified

Portfolio

Process Technology Global Capacity Reputation

• HOS Gold

• Honeywell User Experience

(HUE)

• Velocity Product Development

• Centralized Supporting

Functions

• The Honeywell Brand

• Customer Focus

• Integrity

• Employee Loyalty

• Honeywell Connected

Enterprise

• Honeywell Sentience

(Common IT Platform)

• Shared Technology

Talent Centers

• Honeywell Technology

Solutions

• ~20% of Sales in High

Growth Regions

• HGR 2.0 Strategy

(Becoming the Chinese

Competitor, East-for-

East and East-for-Rest)

Aerospace Building TechnologiesPerformance Materials

and TechnologiesSafety and

Productivity Solutions


HOS Gold

Differentiated Operating System Drives Value Creation in All Businesses

Leverage Productivity

InnovationGrowthGrowth

• Common Set of Tools / Metrics to Drive and Manage Sales

• Value Proposition Development Rigor

• Breakthroughs – New Adjacencies to Enhance

Growth Rate

• Channel Program Design

• Word-Class Working Capital Management

• HOS Drove >200 bps Margin Expansion Over

Last 3 Years*

• OEF Management Drove ~80 bps Fixed-Cost

Improvement Over the Last 5 Years*

• Cross-Honeywell Warehouse Strategy Optimization

• Cross-Business Technology Development

• Cross-Business Selling

• One-Honeywell Leverage: We Use What We Sell

• ~9K Employees Developing Software; World-Class

Technologists Driving Innovation

• Rigor and Metrics for New Product Development

• Honeywell User Experience Incorporated

Into Everything We Do

*Data as of April 2018


Aerospace

With comprehensive offerings ranging

from connectivity systems and services,

satellite communications and cockpit

systems, to propulsion and wheel and

braking systems, Honeywell Aerospace

products and services are used on

virtually every commercial and defense

aircraft platform.

Businesses:

• Electronic Solutions

• Engines and Power Systems

• Mechanical Systems and Components

• Services and Connectivity

Headquarters:

Phoenix, Arizona

Technologies:

• Air and Thermal Management

• Cockpit and Flight Management Systems

• Connectivity Systems and Connected Aircraft Services

• Federal Solutions Management and Operation

• Mechanical Components

• Navigation Systems and Sensors

• Propulsion and Power Systems

• Runway and Flight Safety Technology

• Wheels and Braking Systems

• Satellite Applications$11.6B2017 Sales


Building Technologies

• Building Comfort and Control Systems

• Fire Alarm Systems and Detection

• Smart City Command and Control Solutions

• Video Management and Security

• Air and Water Purification

• Access and Intrusion Control

• Building Management Systems

• Building Products

• Building Solutions

• Greater China / APAC (Regional operation)

• Latin America (Regional operation)

Headquarters:

Atlanta, Georgia

Businesses: Technologies:

Building Technologies creates products,

software, and technologies found in more

than 10 million buildings worldwide.

Commercial building owners and

occupants use our technologies to ensure

their facilities are safe, energy efficient,

sustainable, and productive.

$5.3B2017 Sales


Performance Materials and Technologies

Technologies:

• Advanced Fibers and Composites

• Chemicals and Electronic Materials

• Connected Plant and Software

• Industrial Automation Controls

• Low-Global-Warming Potential Refrigerants

• Oil and Gas Process Technology, Equipment, Catalysts, and Services

• Smart Energy

• Specialty Films and Additives

Businesses:

• Advanced Materials

• Honeywell Process Solutions

• Honeywell UOP

Headquarters:

Morris Plains, New Jersey

Performance Materials and Technologies (PMT)

is a global leader in providing advanced materials,

process technologies, and automation solutions.

PMT delivers high-performance solutions,

including low-global-warming-potential

refrigerants, automation and software for process

industries, and process technologies for the

refining, petrochemical, and gas processing

industries.

$10.3B2017 Sales


Safety and Productivity Solutions

Technologies:

• Automation and Material Handling Solutions

• Footwear for Work, Play, and Outdoor Activities

• Gas Detection Technology and Custom-Engineered Sensors, Switches, and Controls

• Personal Protective Equipment for Industrial / Firefighting Applications

• Printing, Scanning, and Mobile Devices for Data Collection

• Workflow Software and Mobile Cloud Technology

Businesses:

• Honeywell Industrial Safety

• Honeywell Intelligrated

• Productivity Products

• Retail

• Sensing and Internet of Things

Headquarters:

Fort Mill, South Carolina

$5.6B2017 Sales

Safety and Productivity Solutions (SPS) provides products,

software, and connected solutions that improve productivity,

workplace safety, and asset performance for customers across

the globe. We deliver on this promise through industry-leading

mobile devices, software, cloud technology, and automation

solutions; the broadest range of personal protective equipment

and gas detection technology; and custom-engineered sensors,

switches, and controls. We also manufacture and sell a broad

portfolio of footwear for work, play, and outdoor activities,

including XtraTuf™ and Muck Boot™ brand footwear.


Honeywell Connected Enterprise is a centralized,

internal organization that serves as the software-

innovation engine for all of Honeywell

Headquartered in Atlanta, Georgia

Works with businesses and customers to build the

world’s best software solutions rapidly and efficiently

Co-located product management and software

engineering teams

Software and services in Aircraft, Building, Cyber,

Plant, and Worker

Fosters entrepreneurialism and creativity, focused on

developing IoT offerings with big customer impact


Technology and Innovation

18,000Engineers Worldwide

138Research andEngineering Facilities

35,500+Patents Granted or Pending

~9,000Software Developers

Software49%

18,000 Engineers

Mechanical24%

Electrical 22%

Chemical5%


Sustainable Opportunity

>65%Reduction in our greenhouse gas emissions2004-2017

~60%Increase in our energy efficiency2004-2017

Making our

businesses more

environmentally

friendly, safer, and

more sustainable

By 2019, Honeywell will reduce our global

greenhouse gas emissions by an additional 10%

per dollar of revenue from our 2013 levels.

120M Gallons of water conserved in “water-stressed areas”


Media Highlights

Influential International and Domestic Coverage and Recognition

Honeywell Tops Electronics Industry on Fortune’s

2017 “World’s Most Admired Companies”

Honeywell Donates $2 Million in Safety

Equipment After Hurricane Harvey

Honeywell Announces Planned Portfolio Changes:

“Honeywell's move to create two new stand-alone

publicly traded companies is a very smart move.”

— Jim Cramer, CNBC, “Mad Money”

Honeywell’s Que Dallara Named One of

Diversity Journal’s “Women Worth Watching”

Darius Adamczyk Became CEO on March 31, 2017:

“The way we're going to continue to differentiate ourselves

versus other industry players … is by technology.”

Honeywell Ranked As 2017 “Best for Vets”

Employer by Military Times


Delivering High-Impact Social Sustainability Global Programming

19

Smarter SaferMore

Sustainable

• Science and math education focus

• 20 teachers annually learn coding

and earn Georgia STEM School

Certification at Georgia Tech

• More than 3,000 teachers

worldwide received thermal

design, coding training at USSRC

• 5,000 students in UAE attended

Think Science and other education

programs in partnership with

Emirates Foundation and INJAZ

• 10,000+ students focused on IoT

technologies utilize Honeywell

Control Labs in five universities in

Turkey, Romania, and Indonesia

• 3 million students fire-safety

trained in China, India, and

Malaysia

• 6,000 students in Malaysia

received safety training

• 1 million U.S. students learn

personal safety and abduction-

prevention with KidSmartz

• 25,000 students, 1,000 teachers,

and 40,000 parents expect

disaster management training by

2020 in India

• Modern urban sustainability

education in New Jersey and

Mexico City

• 135 Safe drinking water stations

built in rural India serving 300,000

• Water filtration systems serve

3,000 students and 60 teachers in

China

• Wildlife habitat restoration projects

by employees in Syracuse

• Urban pollution stewardship in

Baltimore neighborhoods,

schoolyards

HHS

SummaryUnique, global corporate

citizenship programs

Aligning with

business strategies

Supporting employee

communities146 awards since 2004

Humanitarian Relief

• $13.2 million in donations

distributed to-date

• Beneficiaries: 2,278 employees

(multiple communities)

• Repaired or rebuilt since 2001*- 900 homes

- 4 schools

- 9 medical clinics

- 1 elder community center

- 200 wells

Honeywell Hometown Solutions

*as of November 2018


Reconciliation of Non-GAAP

Measures to GAAP Measures


Reconciliation of Segment Profit to Operating Income and

Calculation of Segment Profit and Operating Income Margins

($M ) 2015 2016 2017Segment profit $7,256 $7,186 $7,690

Stock compensation expense (1)(175) (184) (176)

Repositioning and other (2,3)(569) (674) (962)

Pension and other postretirement service costs (4)(311) (277) (249)

Operating income $6,201 $6,051 $6,303

Segment profit $7,256 $7,186 $7,690

÷ Net sales $38,581 $39,302 $40,534

Segment profit margin % 18.8% 18.3% 19.0%

Operating income $6,201 $6,051 $6,303

÷ Net sales $38,581 $39,302 $40,534

Operating income margin % 16.1% 15.4% 15.5%

(1) Amounts included in Selling, general and administrative expenses.

(2) Includes repositioning, asbestos, environmental expenses and equity income adjustment.

(3) Included in Cost of products and services sold, Selling, general and administrative expenses, and Other income/expense.

(4) Amounts included in Cost of products and services sold and Selling, general and administrative expenses (service costs). (Note - Other income/expense includes non-service cost components).

Certain amounts in the prior year reconciliation have been reclassified to conform with current year presentation, including changes made due to the adoption of the accounting standard related to classification of pension and other

postretirement benefit costs.

We define segment profit as operating income, excluding stock compensation expense, pension and other postretirement service costs, and repositioning and other charges. We believe these measures are useful to investors and

management in understanding our ongoing operations and in analysis of ongoing operating trends.

A quantitative reconciliation of segment profit, on an overall Honeywell basis, to operating income has not been provided for all forward-looking measures of segment profit and segment margin included herewithin. Management cannot

reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit, particularly pension mark-to-market expense as it is dependent on macroeconomic

factors, such as interest rates and the return generated on invested pension plan assets. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent

quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of segment profit to operating income will be included within future

filings.


Reconciliation of Segment Profit to Operating Income and

Calculation of Segment Profit and Operating Income Margins

($M ) 2013 2014Segment profit $6,351 $6,696

Stock compensation expense (1)(170) (187)

Repositioning and other (2,3)(702) (590)

Pension ongoing income (4)90 254

Pension mark-to-market adjustment (4)(51) (249)

OPEB expense (4)(20) (49)

Operating income $5,498 $5,875

Segment profit $6,351 $6,696

÷ Net sales $39,055 $40,306

Segment profit margin % 16.3% 16.6%

Operating income $5,498 $5,875

÷ Net sales $39,055 $40,306

Operating income margin % 14.1% 14.6%

(1) Amounts included in Selling, general and administrative expenses.

(2) Includes repositioning, asbestos, environmental expenses and equity income adjustment.

(3) Included in Cost of products and services sold, Selling, general and administrative expenses, and Other income/expense.

(4) Included in Cost of products and services sold and Selling, general and administrative expenses.

Amounts have not been reclassified to conform with current year presentation and do not include changes made due to the adoption of the accounting standard related to classification of pension and other postretirement benefit costs.

We define segment profit as operating income, excluding stock compensation expense, pension and other postretirement service costs, and repositioning and other charges. We believe these measures are useful to investors and

management in understanding our ongoing operations and in analysis of ongoing operating trends.


Reconciliation of EPS to Adjusted EPS

2013(1)

2014(2)

2015(3)

2016(4)

2017(5)

2018EEarnings per share of common stock - assuming dilution (EPS) $4.92 $5.36 $6.04 $6.21 $2.00 TBD

Pension mark-to-market expense 0.05 0.23 0.06 0.28 0.09 TBD

Debt refinancing expense - - - 0.12 - -

Separation costs - - - - 0.02 TBD

Adjustments to 4Q17 U.S. tax legislation charge - - - - 5.04 TBD

Adjusted EPS $4.97 $5.59 $6.10 $6.61 $7.15 ~$7.95 - $8.00

2013(1)

2014(2)

2015(3)

2016(4)

2017(5)

2018EEarnings per share of common stock - assuming dilution (EPS) $4.92 $5.36 $6.04 $6.21 $2.00 TBD

Pension mark-to-market expense 0.05 0.23 0.06 0.28 0.09 TBD

Debt refinancing expense - - - 0.12 - -

Separation costs - - - - 0.02 TBD

Adjustments to 4Q17 U.S. tax legislation charge - - - - 5.04 TBD

Adjusted EPS $4.97 $5.59 $6.10 $6.61 $7.15 ~$7.95 - $8.00

We believe Adjusted EPS is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. For forward looking information, management cannot reliably predict or

estimate, without unreasonable effort, the pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets, the separation costs given the

inherent uncertainty of the estimates, and any adjustments to the charge from 4Q17 U.S. tax legislation as the charge is provisional. We therefore do not include an estimate for the pension mark-to-market expense, separation costs, or

adjustments to 4Q17 U.S. tax legislation charge in this reconciliation. Based on economic and industry conditions, future developments and other relevant factors, these assumptions are subject to change.

(1) Utilizes weighted average shares of 797.3 million. Pension mark-to-market expense uses a blended tax rate of 25.5%.



(5) Utilizes weighted average shares of 772.1 million. Pension mark-to-market expense uses a blended tax rate of 23%.

(4) Utilizes weighted average shares of 775.3 million. Pension mark-to-market expense uses a blended tax rate of 21.3% and debt refinancing expense uses a tax rate of 26.5%.


Reconciliation of Cash Provided by Operating Activities to Adjusted Free Cash Flow

2013 ($M) 2014 ($M) 2015 ($M) 2016 ($M) 2017 ($M) 2018E ($B)

Cash provided by operating activities $4,335 $5,080 $5,519 $5,498 $5,966 ~$6.2 - $6.8

Expenditures for property, plant and equipment (947) (1,094) (1,073) (1,095) (1,031) ~(0.9)

Free cash flow 3,388 3,986 4,446 4,403 4,935 ~$5.3 - $5.9

Separation cost payments - - - - - ~$0.3 - $0.5

Adjusted free cash flow $3,388 $3,986 $4,446 $4,403 $4,935 ~$5.8 - $6.2

We define free cash flow as cash provided by operating activities less cash expenditures for property, plant and equipment.

We believe that this metric is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth

through new business development activities or acquisitions, pay dividends, repurchase stock or repay debt obligations prior to their maturities. This metric can also be used to evaluate our ability to generate cash flow from

business operations and the impact that this cash flow has on our liquidity.

2013 ($M) 2014 ($M) 2015 ($M) 2016 ($M) 2017 ($M) 2018E ($B)



Free cash flow 3,388 3,986 4,446 4,403 4,935 ~$5.3 - $5.9







2013 ($M) 2014 ($M) 2015 ($M) 2016 ($M) 2017 ($M) 2018E ($B)



Free cash flow 3,388 3,986 4,446 4,403 4,935 ~$5.3 - $5.9








Calculation of Segment Profit Margin Excluding Mergers and Acquisitions

($M ) 2016Segment profit excluding mergers and acquisitons $6,980

÷ Net sales excluding mergers and acquisitions $37,023

Segment profit margin excluding mergers and acquisitons % 18.9%

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