HON
HONEYWELL PORTFOLIO UPDATE
OCTOBER 8, 2024
TODAY'S STRATEGIC UPDATE
Continuing to Optimize the Portfolio
Honeywell Portfolio Update - October 8, 2024
2
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.