Honeywell International : Portfolio Update Presentation

HON

HONEYWELL PORTFOLIO UPDATE

OCTOBER 8, 2024

TODAY'S STRATEGIC UPDATE

Continuing to Optimize the Portfolio

Honeywell Portfolio Update - October 8, 2024

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SPIN RATIONALE

Honeywell continues to simplify its portfolio with sharper focus on its three compelling megatrends

Enhances Honeywell's financial

profile in terms of organic growth, lesser cyclicality and lower capital intensity

Enables Advanced Materials to focus on developing new, more sustainable solutions and products via next- generation chemistry

Creating a Leading Specialty Chemicals and Materials Pure-Play

Honeywell Portfolio Update - October 8, 2024

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CREATING A LEADER IN ADVANCED MATERIALS

COMPETITIVE ADVANTAGES

FINANCIAL OVERVIEW1

~$3.8B

>25%

Sales

EBITDA Margin

Vertical Mix

Geographic Mix

Other

Asia Pacific

Semiconductor

Refrigerants

10%

Materials

19%

9%

38%

Specialty

15%

55%

Chemicals

26%

28%

Europe,

Americas

Middle East,

and Africa

Fluorine

Products

1All sales and EBITDA figures represent 2024 expected results derived from internal management reporting, further adjusted for preliminary cost and expense allocations, including corporate expenses. These figures will be refined prior to the transactions. We define EBITDA as adjusted income before taxes adjusted for interest and other financial charges, interest income, and depreciation and amortization.

Unique Financial Profile in Specialty Chemicals with Market-Leading Solutions

Honeywell Portfolio Update - October 8, 2024

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LEADING POSITIONS AND FAVORABLE MACROS

FLUORINE PRODUCTS

ELECTRONIC MATERIALS

Why AM Wins

Why AM Wins

• Leading position in U.S. HFO

Leveraging U.S. manufacturing base

production, driving transition from HFC

and unique technologies to create

differentiated solutions

Macro Drivers

Macro Drivers

Products / Brands:

• Increasing demand for LGWP*

Products / Brands:

Solstice, Enovate,

refrigerants bolstered by regulatory

Solvents, Polymers,

• Growing demand in electronic materials

requirements

driven by high-end computing, AI and 5G

Genetron

Sputtering Targets

INDUSTRIAL-GRADE FIBERS

HEALTHCARE

Why AM Wins

Why AM Wins

• Leading position globally for high-end

• Leading position in pharmaceutical

armor technology and a variety of other

packaging, highest moisture barrier of

industrial-grade fibers

any clear thermoplastic film

Products / Brands:

Macro Drivers

Products / Brands:

Macro Drivers

• Strong demand for latest generation

• Increasing need for highly-engineered

Spectra, Gold Shield

Aclar, Aclar Accel

technology that protects troops, police

solutions for healthcare applications

*Low Global Warming Potential

Compelling Financial Profile with IP-Protected Portfolio and Regulatory-Driven Demand

Honeywell Portfolio Update - October 8, 2024

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PROGRESSING ON STRATEGIC PRIORITIES

1

2

3

ACCELERATE

EVOLVE ACCELERATOR

OPTIMIZE

ORGANIC GROWTH

OPERATING SYSTEM

PORTFOLIO

Innovation playbook

Integrated operating company

Bolt-on acquisitions

High growth regions

Enhancing growth, margins,

Divest non-core / simplify

• Monetize installed base and

and cash generation

• ↑ Recurring sales / gross margin

scale software

• Taking digital operations to

the next level

FOCUSED ON DELIVERING PROFITABLE GROWTH AND STRONG CASH GENERATION

Strategy to Drive Accelerated Value Creation

Honeywell Portfolio Update - October 8, 2024

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PORTFOLIO TIMELINE SINCE 2023

Acquisition of

Business

Acquisition of

Acquisition of

CCC (IA)

Resegmentation

Civitanavi (AT)

Air Products LNG

Jun 2023

Oct 2023

Aug 2024

(ESS)

Acquisition of

Acquisition of

Acquisition of

Sep 2024

Announced Spin

SCADAfence (IA)

Access Solutions

CAES (AT)

of Advanced

Aug 2023

(BA)

Sep 2024

Materials

Jun 2024

Today

EXECUTING ON PORTFOLIO STRATEGY

POSITIVELY IMPACTING FINANCIAL RESULTS

Portfolio Optimization Momentum Building - Work Not Yet Finished

Honeywell Portfolio Update - October 8, 2024

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THREE COMPELLING MEGATRENDS

AUTOMATION

FUTURE OF AVIATION

ENERGY TRANSITION

Infrastructure Buildings

Energy

Air Transport Advanced Aerial Defense

Energy

Liquified

Mobility

Transformation

Natural Gas

Retail

Warehouse

Business and General

Space

Petrochemicals

Refining

Aviation

Creating the buildings and

Powering the future of aviation

Delivering leading solutions for

factories of the future through

with our safe, precise, energy

the energy transition,

automation, digitalization, and

efficient, sustainable, and

greenhouse gas reduction, and

relentless innovation

innovative aerospace portfolio

conversion to sustainable

spanning takeoff to landing

materials

Continuing to Streamline Portfolio Focus on Attractive Megatrends

Honeywell Portfolio Update - October 8, 2024

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ENERGY AND SUSTAINABILITY SOLUTIONS ROADMAP

END MARKET MIX

BUSINESS MODEL MIX

ENERGY AND SUSTAINABILITY SOLUTIONS1 MIX

Other

Refining /

Energy Storage

Refining /

Petchem

Sustainable

Petchem

Technology

Solutions

Gas

2020

Future

Increasing

$2.2B

Sustainability

>$5B

Gas

Services

Licensing and

Services

Licensing and

Engineering

Engineering

2020

Consistent

Future

$2.2B

Business Mix

>$5B

Catalysts and

Equipment

Catalysts and

Equipment

Adsorbents

Adsorbents

KEY GROWTH VERTICALS

Expanding through leadership positions in

emerging energy transition verticals

Renewable

Green

Energy

Fuels

Hydrogen

Storage

Carbon Capture /

Plastics

Blue Hydrogen

Circularity

INORGANIC PRIORITIES

Portfolio additions focused on:

Delivering the World's Future Sustainable Energy Outcomes Today

12020 revenue for ESS adjusted for removal of Advanced Materials.

Honeywell Portfolio Update - October 8, 2024

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Disclaimer

Honeywell International Incorporation published this content on October 10, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 09, 2024 at 04:50:02.957.