HON 2015 Fact Sheet
6
2015 FACT SHEET
description
Fact Sheet about Honeywell International
Transcript of HON 2015 Fact Sheet
-
CONTACT INFORMATIONFind out whats happening at Honeywell at www.honeywellnow.com Follow us at @HoneywellNow
Investors:
MARK MACALUSO Vice President of Investor Relations Tel: 973.455.2222 Email: [email protected]
Media:
ROB FERRISVice President of External Communications Tel: 973.455.3388 Email: [email protected]
EnergyFuel efficient turbochargers are reducing emissions and improving vehicle fuel economy. Demand Response and Smart Grid technology help to keep the lights on. Home comfort systems are helping homeowners save up to 30% on energy bills, and were designing smart building solutions that integrate all systems for maximum control and efficiency. With nearly 50% of our portfolio dedicated to energy solutions, Honeywell is leading the charge in energy efficiency and clean energy generation.
Safety & Security Honeywell personal protective equipment and security technologies can help keep an emergency from becoming a tragedy, and our security solutions for buildings, industrial facilities, and national defense protect us from emerging threats. Were also a leader in advanced in-flight and on-the-ground avionics tokeep travelers safe.
ProductivityHoneywell solutions help us all to be better, faster and more efficient, effectively managing home comfort and security from remote locations, keeping passengers in touch everywhere they fly, and providing employees inthe field with the tools to help them work smarter.
Growing Global Wealth Per CapitaHoneywell solutions, including air traffic management, vehicle turbochargers and technology for fuel and petrochemical production, are critical to address growing populations and the growing global middle class as more and more people drive cars, own homes, fly, and establish new communities.
WE ARE BUILDING A WORLD THAT IS SAFER AND MORE SECURE,MORE COMFORTABLE AND ENERGY EFFICIENT, MORE INNOVATIVE AND PRODUCTIVE.
$32.4B
$36.5B $37.7B$39.1B $40.3B
20142010 2011 2012 2013
HON_FS15_p5a_HistSales_v1
$3.00
$4.05$4.48
$4.97$5.56
20142010 2011 2012 2013
HON_FS15_p5c_HistEPS_v1
$3.6B
$2.0B$2.6B
$3.4B$3.9B
20142010 2011 2012 2013
HON_FS15_p5d_HistCashFlow_v113.9%
14.7%15.6%
16.3% 16.6%
20142010 2011 2012 2013
HON_FS15_p5b_HistSegMargs_v1
$39.1
+5-8B
2013
6-9% CAG
R4-6%
Organic C
AGR
2014 2018T
From M&A
2013Segment Profit Segment Margin
4575 bps per
year
2014 2018T
16.3%
~$1.00 EPS
$40.316.6%
18.5%20.0%$46$51
HON_FS15_p5e_LongTermSales_v1
SALES
EARNINGS PER SHARE (Ex-Pension MTM)1 FREE CASH FLOW 2, 3
SEGMENT MARGIN
SALES (in billions) SEGMENT PROFIT/MARGIN
Despite significant currency headwinds and lower global GDP growth, Honeywell delivered strong performance against our first five-year plan ending in 2014, growing sales by 6% on a compounded annual basis and expanding segment margins by 330 basis points. Honeywell is on track to achieve our current five-year financial targets. We expect that improving end markets, new product introductions, penetration inHigh Growth Regions, and benefits from our HOS Gold initiative will drive both growth and productivity throughout the company. Additionally, our strong balance sheet will allow us to thoughtfully deploy capital over the five-year horizon to generate an incremental dollar of EPS by 2018.
1 EPS Excludes Pension Mark-to-Market Adjustments.2 Operating Cash Flow Less Capital Expenditures.3 Includes Cash Pension Contributions of $0.7B (2010), $1.7B (2011), $1.0B (2012) and $0.2B (2013).
PERFORMANCE TRACK RECORD
FIVE-YEAR PLAN
Our reconciliations of non-GAAP measures to GAAP measures accompany this document and are also available at www.honeywell.com/investor.
187% Five Year Total Shareowner
Return vs. S&P 500 of 105% (2010-2014)
~$1.3B Capital Expenditures
for 2015
~30-40% Estimated IRR on Capital Expenditure Investments
for Growth in PMT
15% Dividend Rate
Increase in October2014
2015FACT SHEET
-
GREAT POSITIONS IN GOOD INDUSTRIESHoneywell creates solutions linked to global macro-trends that improve quality of life for people around the globe generating clean, healthy energy, and using it more efficiently; increasing our safety and security; enabling people to connect, communicate, and collaborate; and equipping our customers to beeven more productive.
Honeywells Great Positions in Good Industries have been a huge driver of our portfolio development and organic growth. Our successful mergers and acquisitions process has also helped create Diversity of Opportunity, significantly enhancing our growth prospects and ensuring that there is never any one product, geography, or industry that will make orbreak our company.
OUR CULTURE: ONE HONEYWELLPeople are our ultimate differentiator. We have built a robust One Honeywell culture focused on aligning more than 127,000 employees around the globe through an integrated portfolio strategy, our five Initiatives and 12 Behaviors and common internal processes. Our people are innovating every day to create solutions that our customers want and that are easier to use.
HOS Gold focuses on growing sales and becoming more productive, integrating all of our major internal process initiatives into a total business operating system. It is an end-to-end business management process focused on customers and markets, strategy development and execution, robust management, standardized work and cross-functional engagement.
Honeywell Operating System (HOS) drives sustainable safety, quality, delivery, cost, and inventory improvements that ultimately will give us a 20-year competitive advantage.
Functional Transformation (FT) is doing more with less, standardizing the way we work, reducing costs and improving service quality across our administrative and back-office functions.
Sales, Inventory & Operations Planning (SIOP) enables integration and collaboration among our Integrated Supply Chain, Sourcing and Engineering teams, allowing us to respond quickly to changes in demand and supply, and driving accountability to reach one set of numbers.
Velocity Product Development (VPD) brings together all of the functions necessary to successfully launch new technologies R&D, Manufacturing, Marketing and Sales to ensure we deliver the right products at the right price, and faster than our competitors.
Honeywell User Experience (HUE) is a systematic process focused on developing solutions for our users, maintainers, installers, consumers and employees that are easier to use, more intuitive, more efficient and more productive.
Capability Maturity Model Integration (CMMI) Level 5 certification confirms that a robust and reliable software development process has been achieved.
Six Sigma/Lean provides the best process analysis tools available, enabling millions of dollars in productivity savings for Honeywell each year.
Cycle Time initiatives, improved through the application of HOS, are helping to reduce inventories and improve customer delivery.
OUR ENABLER: HOS GOLD
100% CMMI Level 5
certified by 2015
~22,000 Engineers with 50%+ Focused onSoftware
150M Homes Globally
Using Our Security and Energy
Management Technology
~$7B Sales Divested
Through ~60 Divestitures
Since 2002
392 Primus Epic Cockpits Installed by the End of 2015 More Than All
Three Top Competitors Combined
~$12B Sales Through
80+ Acquisitions Since 2002
~100 New Turbo
Applications Launched Each Year
$2.3B Signed Agreements
for Low-Global-Warming Solstice Products in 2014
HOSGOLD
BREAKTH
RO
UG
H O
BJECTIVES MAN
AGEM
ENT
OP
ERAT
ING
SYS
TE
M
X-MATRIX Honeywell Operating
System
Cycle TimeHoneywell
User Experience
Velocity Product
Development
Sales, Inventory & Operations
Planning
Functional Transformation
Six Sigma/Lean Software (CMMI Level 5)
Organizational Efficiency
Pricing Excellence
Strategic Marketing Program
Becoming The Chinese Competitor
High Growth Regions
Other Process Improvements
Procurement Optimization
Inventory Working Capital
Optimization
OUR BUSINESSES
Aerospace
Our mechanical and electrical innovations are used today on virtually every commercial and defense aircraft platform, making air travel safe, efficient, productive and comfortable. We also provide world-class turbocharger solutions that make passenger and commercial vehicles perform better and more fuel efficiently.
Cockpit systems
Runway & flight safety technology
Air Traffic Management
SATCOM & connectivity
Propulsion
Precision guidance
Wheels and brakes
Logistics services
Gasoline, diesel, hybrid,and fuel cell turbochargers with variable nozzle technology
Automation and Control Solutions
Our environmental controls, energy management systems, life safety devices, security systems, sensors, scanners and mobile products are at work in homes, buildings and public and private utilities around the world, keeping our customers comfortable, protected and productive.
Home comfort and security
Building control systems
Smart Grid/Demand response technology
Scanning and mobile computers
Fire alarm systems andgas detection
Personal protective equipment
Automatic identification and data collection
Remote health monitoring
Performance Materials and Technologies
We develop advanced materials, process technologies and automation solutions that reduce emissions, improve operational efficiency, enable production of cleaner fuels, increase capacity in oil refineries, increase the strength of ballistic materials and fibers and protect medicines.
Oil & gas process technology, equipment, catalysts, and services
Industrial automation controls
Low-global-warming potential refrigerants
Specialty films andadditives
Advanced fibers and composites
Nylon materials and ammonium sulfate fertilizer
Electronic materials and chemicals
9% VEHICLES
21% INDUSTRIAL
24% HOMES AND BUILDINGS
18% COMMERCIAL AEROSPACE
5% INTERNATIONAL DEFENSE,
SPACE, OTHER
HON_FS14_Fin_EndMarkets_Chart
16% OIL AND GAS7% U.S. DOD
HON_FS15_p3e_FinEndMarkets_v3
$2.6
$9.7ENERGY, SAFETY, AND SECURITY
$4.7
$4.6
$4.8
$3.2
$3.7
$3.1$3.9
COMMERCIAL OE
COMMERCIAL AFTERMARKET
DEFENSE & SPACE
TRANSPORTATIONSYSTEMS
UOP
ADVANCED MATERIALS
PROCESS SOLUTIONS
BUILDING SOLUTIONS &DISTRIBUTION
$14.5B Automation and Control Solutions
$15.6B Aerospace
$10.2B PerformanceMaterials and Technologies
TOTAL$40.3BSALES
HON_FS15_p3a_2015FinPerf_v6
SALES BY REGION
ORGANIZATIONAL FOOTPRINT
53% AMERICAS
8% CHINA
23% EMEA
10% INDIA
6% OTHER ASIA PACIFIC
HON_FS15_p3c_FinFoot_v1
2014 AT A GLANCE
PORTFOLIO
HON_FS14_Fin_Regional_Chart
45% UNITED STATES
8% OTHER AMERICAS
2% INDIA
4% MIDDLE EAST
24% EUROPE
6% CHINA
11%OTHER
HON_FS15_p3b_FinRegional_v1
END MARKETS (SALES)
SALES BY SEGMENT
40% United States
16% Europe
8% China
3% India
7% Middle East
7% Latin America
19% Other
HON_FS15_p4h_PerfMatRegionSales_v2
31% Process Solutions
31% UOP 10% Fluorine Products
17% Resins and Chemicals
11% Specialty Products
HON_FS15_p4i_PerfMatEndMarkets_v1
47% United States
26% Europe
6% China
3% Middle East
1% India17% Other
HON_FS15_p4b_AeroRegionSales_v3
47% United States
28% Europe
5% China
1% India
3% Middle East
16% Other
HON_FS15_p4e_AutoRegionSales_v1
17% Commercial OE
30% Commercial Aftermarket
18% U.S. Defense
4% Government Services
8% International Defense/Other
23% Transportation Systems
HON_FS15_p4c_AeroEndMarkets_v1
HON_FS14_Auto_EndMarkets_Chart
35% Industrial 20% Homes
45% Buildings
HON_FS15_p4f_AutoEndMarkets_v2
SALES BY BUSINESS
SALES (in billions)
SALES BY REGION
SALES BY REGION
SALES BY BUSINESS
SALES BY END MARKET
SALES (in billions)
SALES (in billions)
AEROSPACE
AUTOMATION AND CONTROL SOLUTIONS
PERFORMANCE MATERIALS AND TECHNOLOGIES
$13.9 $15.3 $15.6$15.7 $15.6
2010
15.8% 16.4% 17.4%18.2% 18.7%
Segment Margin
2011 2012 2013 2014
HON_FS15_p4a_AeroSales_v1
$11.1$12.5 $12.8 $13.5
$14.5
2010
12.9% 13.8% 14.4%14.7% 15.2% Segment
Margin
2011 2012 2013 2014
HON_FS15_p4d_AutoCtrlSales_v1
$7.4$8.7 $9.3
$9.9 $10.2
2010
14.7% 16.1%16.7% 17.5% 17.8% Segment
Margin
2011 2012 2013 2014
HON_FS15_p4g_PerfMatSales_v1
SALES BY REGION
-
GREAT POSITIONS IN GOOD INDUSTRIESHoneywell creates solutions linked to global macro-trends that improve quality of life for people around the globe generating clean, healthy energy, and using it more efficiently; increasing our safety and security; enabling people to connect, communicate, and collaborate; and equipping our customers to beeven more productive.
Honeywells Great Positions in Good Industries have been a huge driver of our portfolio development and organic growth. Our successful mergers and acquisitions process has also helped create Diversity of Opportunity, significantly enhancing our growth prospects and ensuring that there is never any one product, geography, or industry that will make orbreak our company.
OUR CULTURE: ONE HONEYWELLPeople are our ultimate differentiator. We have built a robust One Honeywell culture focused on aligning more than 127,000 employees around the globe through an integrated portfolio strategy, our five Initiatives and 12 Behaviors and common internal processes. Our people are innovating every day to create solutions that our customers want and that are easier to use.
HOS Gold focuses on growing sales and becoming more productive, integrating all of our major internal process initiatives into a total business operating system. It is an end-to-end business management process focused on customers and markets, strategy development and execution, robust management, standardized work and cross-functional engagement.
Honeywell Operating System (HOS) drives sustainable safety, quality, delivery, cost, and inventory improvements that ultimately will give us a 20-year competitive advantage.
Functional Transformation (FT) is doing more with less, standardizing the way we work, reducing costs and improving service quality across our administrative and back-office functions.
Sales, Inventory & Operations Planning (SIOP) enables integration and collaboration among our Integrated Supply Chain, Sourcing and Engineering teams, allowing us to respond quickly to changes in demand and supply, and driving accountability to reach one set of numbers.
Velocity Product Development (VPD) brings together all of the functions necessary to successfully launch new technologies R&D, Manufacturing, Marketing and Sales to ensure we deliver the right products at the right price, and faster than our competitors.
Honeywell User Experience (HUE) is a systematic process focused on developing solutions for our users, maintainers, installers, consumers and employees that are easier to use, more intuitive, more efficient and more productive.
Capability Maturity Model Integration (CMMI) Level 5 certification confirms that a robust and reliable software development process has been achieved.
Six Sigma/Lean provides the best process analysis tools available, enabling millions of dollars in productivity savings for Honeywell each year.
Cycle Time initiatives, improved through the application of HOS, are helping to reduce inventories and improve customer delivery.
OUR ENABLER: HOS GOLD
100% CMMI Level 5
certified by 2015
~22,000 Engineers with 50%+ Focused onSoftware
150M Homes Globally
Using Our Security and Energy
Management Technology
~$7B Sales Divested
Through ~60 Divestitures
Since 2002
392 Primus Epic Cockpits Installed by the End of 2015 More Than All
Three Top Competitors Combined
~$12B Sales Through
80+ Acquisitions Since 2002
~100 New Turbo
Applications Launched Each Year
$2.3B Signed Agreements
for Low-Global-Warming Solstice Products in 2014
HOSGOLD
BREAKTH
RO
UG
H O
BJECTIVES MAN
AGEM
ENT
OP
ERAT
ING
SYS
TE
M
X-MATRIX Honeywell Operating
System
Cycle TimeHoneywell
User Experience
Velocity Product
Development
Sales, Inventory & Operations
Planning
Functional Transformation
Six Sigma/Lean Software (CMMI Level 5)
Organizational Efficiency
Pricing Excellence
Strategic Marketing Program
Becoming The Chinese Competitor
High Growth Regions
Other Process Improvements
Procurement Optimization
Inventory Working Capital
Optimization
OUR BUSINESSES
Aerospace
Our mechanical and electrical innovations are used today on virtually every commercial and defense aircraft platform, making air travel safe, efficient, productive and comfortable. We also provide world-class turbocharger solutions that make passenger and commercial vehicles perform better and more fuel efficiently.
Cockpit systems
Runway & flight safety technology
Air Traffic Management
SATCOM & connectivity
Propulsion
Precision guidance
Wheels and brakes
Logistics services
Gasoline, diesel, hybrid,and fuel cell turbochargers with variable nozzle technology
Automation and Control Solutions
Our environmental controls, energy management systems, life safety devices, security systems, sensors, scanners and mobile products are at work in homes, buildings and public and private utilities around the world, keeping our customers comfortable, protected and productive.
Home comfort and security
Building control systems
Smart Grid/Demand response technology
Scanning and mobile computers
Fire alarm systems andgas detection
Personal protective equipment
Automatic identification and data collection
Remote health monitoring
Performance Materials and Technologies
We develop advanced materials, process technologies and automation solutions that reduce emissions, improve operational efficiency, enable production of cleaner fuels, increase capacity in oil refineries, increase the strength of ballistic materials and fibers and protect medicines.
Oil & gas process technology, equipment, catalysts, and services
Industrial automation controls
Low-global-warming potential refrigerants
Specialty films andadditives
Advanced fibers and composites
Nylon materials and ammonium sulfate fertilizer
Electronic materials and chemicals
9% VEHICLES
21% INDUSTRIAL
24% HOMES AND BUILDINGS
18% COMMERCIAL AEROSPACE
5% INTERNATIONAL DEFENSE,
SPACE, OTHER
HON_FS14_Fin_EndMarkets_Chart
16% OIL AND GAS7% U.S. DOD
HON_FS15_p3e_FinEndMarkets_v3
$2.6
$9.7ENERGY, SAFETY, AND SECURITY
$4.7
$4.6
$4.8
$3.2
$3.7
$3.1$3.9
COMMERCIAL OE
COMMERCIAL AFTERMARKET
DEFENSE & SPACE
TRANSPORTATIONSYSTEMS
UOP
ADVANCED MATERIALS
PROCESS SOLUTIONS
BUILDING SOLUTIONS &DISTRIBUTION
$14.5B Automation and Control Solutions
$15.6B Aerospace
$10.2B PerformanceMaterials and Technologies
TOTAL$40.3BSALES
HON_FS15_p3a_2015FinPerf_v6
SALES BY REGION
ORGANIZATIONAL FOOTPRINT
53% AMERICAS
8% CHINA
23% EMEA
10% INDIA
6% OTHER ASIA PACIFIC
HON_FS15_p3c_FinFoot_v1
2014 AT A GLANCE
PORTFOLIO
HON_FS14_Fin_Regional_Chart
45% UNITED STATES
8% OTHER AMERICAS
2% INDIA
4% MIDDLE EAST
24% EUROPE
6% CHINA
11%OTHER
HON_FS15_p3b_FinRegional_v1
END MARKETS (SALES)
SALES BY SEGMENT
40% United States
16% Europe
8% China
3% India
7% Middle East
7% Latin America
19% Other
HON_FS15_p4h_PerfMatRegionSales_v2
31% Process Solutions
31% UOP 10% Fluorine Products
17% Resins and Chemicals
11% Specialty Products
HON_FS15_p4i_PerfMatEndMarkets_v1
47% United States
26% Europe
6% China
3% Middle East
1% India17% Other
HON_FS15_p4b_AeroRegionSales_v3
47% United States
28% Europe
5% China
1% India
3% Middle East
16% Other
HON_FS15_p4e_AutoRegionSales_v1
17% Commercial OE
30% Commercial Aftermarket
18% U.S. Defense
4% Government Services
8% International Defense/Other
23% Transportation Systems
HON_FS15_p4c_AeroEndMarkets_v1
HON_FS14_Auto_EndMarkets_Chart
35% Industrial 20% Homes
45% Buildings
HON_FS15_p4f_AutoEndMarkets_v2
SALES BY BUSINESS
SALES (in billions)
SALES BY REGION
SALES BY REGION
SALES BY BUSINESS
SALES BY END MARKET
SALES (in billions)
SALES (in billions)
AEROSPACE
AUTOMATION AND CONTROL SOLUTIONS
PERFORMANCE MATERIALS AND TECHNOLOGIES
$13.9 $15.3 $15.6$15.7 $15.6
2010
15.8% 16.4% 17.4%18.2% 18.7%
Segment Margin
2011 2012 2013 2014
HON_FS15_p4a_AeroSales_v1
$11.1$12.5 $12.8 $13.5
$14.5
2010
12.9% 13.8% 14.4%14.7% 15.2% Segment
Margin
2011 2012 2013 2014
HON_FS15_p4d_AutoCtrlSales_v1
$7.4$8.7 $9.3
$9.9 $10.2
2010
14.7% 16.1%16.7% 17.5% 17.8% Segment
Margin
2011 2012 2013 2014
HON_FS15_p4g_PerfMatSales_v1
SALES BY REGION
-
GREAT POSITIONS IN GOOD INDUSTRIESHoneywell creates solutions linked to global macro-trends that improve quality of life for people around the globe generating clean, healthy energy, and using it more efficiently; increasing our safety and security; enabling people to connect, communicate, and collaborate; and equipping our customers to beeven more productive.
Honeywells Great Positions in Good Industries have been a huge driver of our portfolio development and organic growth. Our successful mergers and acquisitions process has also helped create Diversity of Opportunity, significantly enhancing our growth prospects and ensuring that there is never any one product, geography, or industry that will make orbreak our company.
OUR CULTURE: ONE HONEYWELLPeople are our ultimate differentiator. We have built a robust One Honeywell culture focused on aligning more than 127,000 employees around the globe through an integrated portfolio strategy, our five Initiatives and 12 Behaviors and common internal processes. Our people are innovating every day to create solutions that our customers want and that are easier to use.
HOS Gold focuses on growing sales and becoming more productive, integrating all of our major internal process initiatives into a total business operating system. It is an end-to-end business management process focused on customers and markets, strategy development and execution, robust management, standardized work and cross-functional engagement.
Honeywell Operating System (HOS) drives sustainable safety, quality, delivery, cost, and inventory improvements that ultimately will give us a 20-year competitive advantage.
Functional Transformation (FT) is doing more with less, standardizing the way we work, reducing costs and improving service quality across our administrative and back-office functions.
Sales, Inventory & Operations Planning (SIOP) enables integration and collaboration among our Integrated Supply Chain, Sourcing and Engineering teams, allowing us to respond quickly to changes in demand and supply, and driving accountability to reach one set of numbers.
Velocity Product Development (VPD) brings together all of the functions necessary to successfully launch new technologies R&D, Manufacturing, Marketing and Sales to ensure we deliver the right products at the right price, and faster than our competitors.
Honeywell User Experience (HUE) is a systematic process focused on developing solutions for our users, maintainers, installers, consumers and employees that are easier to use, more intuitive, more efficient and more productive.
Capability Maturity Model Integration (CMMI) Level 5 certification confirms that a robust and reliable software development process has been achieved.
Six Sigma/Lean provides the best process analysis tools available, enabling millions of dollars in productivity savings for Honeywell each year.
Cycle Time initiatives, improved through the application of HOS, are helping to reduce inventories and improve customer delivery.
OUR ENABLER: HOS GOLD
100% CMMI Level 5
certified by 2015
~22,000 Engineers with 50%+ Focused onSoftware
150M Homes Globally
Using Our Security and Energy
Management Technology
~$7B Sales Divested
Through ~60 Divestitures
Since 2002
392 Primus Epic Cockpits Installed by the End of 2015 More Than All
Three Top Competitors Combined
~$12B Sales Through
80+ Acquisitions Since 2002
~100 New Turbo
Applications Launched Each Year
$2.3B Signed Agreements
for Low-Global-Warming Solstice Products in 2014
HOSGOLD
BREAKTH
RO
UG
H O
BJECTIVES MAN
AGEM
ENT
OP
ERAT
ING
SYS
TE
M
X-MATRIX Honeywell Operating
System
Cycle TimeHoneywell
User Experience
Velocity Product
Development
Sales, Inventory & Operations
Planning
Functional Transformation
Six Sigma/Lean Software (CMMI Level 5)
Organizational Efficiency
Pricing Excellence
Strategic Marketing Program
Becoming The Chinese Competitor
High Growth Regions
Other Process Improvements
Procurement Optimization
Inventory Working Capital
Optimization
OUR BUSINESSES
Aerospace
Our mechanical and electrical innovations are used today on virtually every commercial and defense aircraft platform, making air travel safe, efficient, productive and comfortable. We also provide world-class turbocharger solutions that make passenger and commercial vehicles perform better and more fuel efficiently.
Cockpit systems
Runway & flight safety technology
Air Traffic Management
SATCOM & connectivity
Propulsion
Precision guidance
Wheels and brakes
Logistics services
Gasoline, diesel, hybrid,and fuel cell turbochargers with variable nozzle technology
Automation and Control Solutions
Our environmental controls, energy management systems, life safety devices, security systems, sensors, scanners and mobile products are at work in homes, buildings and public and private utilities around the world, keeping our customers comfortable, protected and productive.
Home comfort and security
Building control systems
Smart Grid/Demand response technology
Scanning and mobile computers
Fire alarm systems andgas detection
Personal protective equipment
Automatic identification and data collection
Remote health monitoring
Performance Materials and Technologies
We develop advanced materials, process technologies and automation solutions that reduce emissions, improve operational efficiency, enable production of cleaner fuels, increase capacity in oil refineries, increase the strength of ballistic materials and fibers and protect medicines.
Oil & gas process technology, equipment, catalysts, and services
Industrial automation controls
Low-global-warming potential refrigerants
Specialty films andadditives
Advanced fibers and composites
Nylon materials and ammonium sulfate fertilizer
Electronic materials and chemicals
9% VEHICLES
21% INDUSTRIAL
24% HOMES AND BUILDINGS
18% COMMERCIAL AEROSPACE
5% INTERNATIONAL DEFENSE,
SPACE, OTHER
HON_FS14_Fin_EndMarkets_Chart
16% OIL AND GAS7% U.S. DOD
HON_FS15_p3e_FinEndMarkets_v3
$2.6
$9.7ENERGY, SAFETY, AND SECURITY
$4.7
$4.6
$4.8
$3.2
$3.7
$3.1$3.9
COMMERCIAL OE
COMMERCIAL AFTERMARKET
DEFENSE & SPACE
TRANSPORTATIONSYSTEMS
UOP
ADVANCED MATERIALS
PROCESS SOLUTIONS
BUILDING SOLUTIONS &DISTRIBUTION
$14.5B Automation and Control Solutions
$15.6B Aerospace
$10.2B PerformanceMaterials and Technologies
TOTAL$40.3BSALES
HON_FS15_p3a_2015FinPerf_v6
SALES BY REGION
ORGANIZATIONAL FOOTPRINT
53% AMERICAS
8% CHINA
23% EMEA
10% INDIA
6% OTHER ASIA PACIFIC
HON_FS15_p3c_FinFoot_v1
2014 AT A GLANCE
PORTFOLIO
HON_FS14_Fin_Regional_Chart
45% UNITED STATES
8% OTHER AMERICAS
2% INDIA
4% MIDDLE EAST
24% EUROPE
6% CHINA
11%OTHER
HON_FS15_p3b_FinRegional_v1
END MARKETS (SALES)
SALES BY SEGMENT
40% United States
16% Europe
8% China
3% India
7% Middle East
7% Latin America
19% Other
HON_FS15_p4h_PerfMatRegionSales_v2
31% Process Solutions
31% UOP 10% Fluorine Products
17% Resins and Chemicals
11% Specialty Products
HON_FS15_p4i_PerfMatEndMarkets_v1
47% United States
26% Europe
6% China
3% Middle East
1% India17% Other
HON_FS15_p4b_AeroRegionSales_v3
47% United States
28% Europe
5% China
1% India
3% Middle East
16% Other
HON_FS15_p4e_AutoRegionSales_v1
17% Commercial OE
30% Commercial Aftermarket
18% U.S. Defense
4% Government Services
8% International Defense/Other
23% Transportation Systems
HON_FS15_p4c_AeroEndMarkets_v1
HON_FS14_Auto_EndMarkets_Chart
35% Industrial 20% Homes
45% Buildings
HON_FS15_p4f_AutoEndMarkets_v2
SALES BY BUSINESS
SALES (in billions)
SALES BY REGION
SALES BY REGION
SALES BY BUSINESS
SALES BY END MARKET
SALES (in billions)
SALES (in billions)
AEROSPACE
AUTOMATION AND CONTROL SOLUTIONS
PERFORMANCE MATERIALS AND TECHNOLOGIES
$13.9 $15.3 $15.6$15.7 $15.6
2010
15.8% 16.4% 17.4%18.2% 18.7%
Segment Margin
2011 2012 2013 2014
HON_FS15_p4a_AeroSales_v1
$11.1$12.5 $12.8 $13.5
$14.5
2010
12.9% 13.8% 14.4%14.7% 15.2% Segment
Margin
2011 2012 2013 2014
HON_FS15_p4d_AutoCtrlSales_v1
$7.4$8.7 $9.3
$9.9 $10.2
2010
14.7% 16.1%16.7% 17.5% 17.8% Segment
Margin
2011 2012 2013 2014
HON_FS15_p4g_PerfMatSales_v1
SALES BY REGION
-
CONTACT INFORMATIONFind out whats happening at Honeywell at www.honeywellnow.com Follow us at @HoneywellNow
Investors:
MARK MACALUSO Vice President of Investor Relations Tel: 973.455.2222 Email: [email protected]
Media:
ROB FERRISVice President of External Communications Tel: 973.455.3388 Email: [email protected]
EnergyFuel efficient turbochargers are reducing emissions and improving vehicle fuel economy. Demand Response and Smart Grid technology help to keep the lights on. Home comfort systems are helping homeowners save up to 30% on energy bills, and were designing smart building solutions that integrate all systems for maximum control and efficiency. With nearly 50% of our portfolio dedicated to energy solutions, Honeywell is leading the charge in energy efficiency and clean energy generation.
Safety & Security Honeywell personal protective equipment and security technologies can help keep an emergency from becoming a tragedy, and our security solutions for buildings, industrial facilities, and national defense protect us from emerging threats. Were also a leader in advanced in-flight and on-the-ground avionics tokeep travelers safe.
ProductivityHoneywell solutions help us all to be better, faster and more efficient, effectively managing home comfort and security from remote locations, keeping passengers in touch everywhere they fly, and providing employees inthe field with the tools to help them work smarter.
Growing Global Wealth Per CapitaHoneywell solutions, including air traffic management, vehicle turbochargers and technology for fuel and petrochemical production, are critical to address growing populations and the growing global middle class as more and more people drive cars, own homes, fly, and establish new communities.
WE ARE BUILDING A WORLD THAT IS SAFER AND MORE SECURE,MORE COMFORTABLE AND ENERGY EFFICIENT, MORE INNOVATIVE AND PRODUCTIVE.
$32.4B
$36.5B $37.7B$39.1B $40.3B
20142010 2011 2012 2013
HON_FS15_p5a_HistSales_v1
$3.00
$4.05$4.48
$4.97$5.56
20142010 2011 2012 2013
HON_FS15_p5c_HistEPS_v1
$3.6B
$2.0B$2.6B
$3.4B$3.9B
20142010 2011 2012 2013
HON_FS15_p5d_HistCashFlow_v113.9%
14.7%15.6%
16.3% 16.6%
20142010 2011 2012 2013
HON_FS15_p5b_HistSegMargs_v1
$39.1
+5-8B
2013
6-9% CAG
R4-6%
Organic C
AGR
2014 2018T
From M&A
2013Segment Profit Segment Margin
4575 bps per
year
2014 2018T
16.3%
~$1.00 EPS
$40.316.6%
18.5%20.0%$46$51
HON_FS15_p5e_LongTermSales_v1
SALES
EARNINGS PER SHARE (Ex-Pension MTM)1 FREE CASH FLOW 2, 3
SEGMENT MARGIN
SALES (in billions) SEGMENT PROFIT/MARGIN
Despite significant currency headwinds and lower global GDP growth, Honeywell delivered strong performance against our first five-year plan ending in 2014, growing sales by 6% on a compounded annual basis and expanding segment margins by 330 basis points. Honeywell is on track to achieve our current five-year financial targets. We expect that improving end markets, new product introductions, penetration inHigh Growth Regions, and benefits from our HOS Gold initiative will drive both growth and productivity throughout the company. Additionally, our strong balance sheet will allow us to thoughtfully deploy capital over the five-year horizon to generate an incremental dollar of EPS by 2018.
1 EPS Excludes Pension Mark-to-Market Adjustments.2 Operating Cash Flow Less Capital Expenditures.3 Includes Cash Pension Contributions of $0.7B (2010), $1.7B (2011), $1.0B (2012) and $0.2B (2013).
PERFORMANCE TRACK RECORD
FIVE-YEAR PLAN
Our reconciliations of non-GAAP measures to GAAP measures accompany this document and are also available at www.honeywell.com/investor.
187% Five Year Total Shareowner
Return vs. S&P 500 of 105% (2010-2014)
~$1.3B Capital Expenditures
for 2015
~30-40% Estimated IRR on Capital Expenditure Investments
for Growth in PMT
15% Dividend Rate
Increase in October2014
2015FACT SHEET
-
CONTACT INFORMATIONFind out whats happening at Honeywell at www.honeywellnow.com Follow us at @HoneywellNow
Investors:
MARK MACALUSO Vice President of Investor Relations Tel: 973.455.2222 Email: [email protected]
Media:
ROB FERRISVice President of External Communications Tel: 973.455.3388 Email: [email protected]
EnergyFuel efficient turbochargers are reducing emissions and improving vehicle fuel economy. Demand Response and Smart Grid technology help to keep the lights on. Home comfort systems are helping homeowners save up to 30% on energy bills, and were designing smart building solutions that integrate all systems for maximum control and efficiency. With nearly 50% of our portfolio dedicated to energy solutions, Honeywell is leading the charge in energy efficiency and clean energy generation.
Safety & Security Honeywell personal protective equipment and security technologies can help keep an emergency from becoming a tragedy, and our security solutions for buildings, industrial facilities, and national defense protect us from emerging threats. Were also a leader in advanced in-flight and on-the-ground avionics tokeep travelers safe.
ProductivityHoneywell solutions help us all to be better, faster and more efficient, effectively managing home comfort and security from remote locations, keeping passengers in touch everywhere they fly, and providing employees inthe field with the tools to help them work smarter.
Growing Global Wealth Per CapitaHoneywell solutions, including air traffic management, vehicle turbochargers and technology for fuel and petrochemical production, are critical to address growing populations and the growing global middle class as more and more people drive cars, own homes, fly, and establish new communities.
WE ARE BUILDING A WORLD THAT IS SAFER AND MORE SECURE,MORE COMFORTABLE AND ENERGY EFFICIENT, MORE INNOVATIVE AND PRODUCTIVE.
$32.4B
$36.5B $37.7B$39.1B $40.3B
20142010 2011 2012 2013
HON_FS15_p5a_HistSales_v1
$3.00
$4.05$4.48
$4.97$5.56
20142010 2011 2012 2013
HON_FS15_p5c_HistEPS_v1
$3.6B
$2.0B$2.6B
$3.4B$3.9B
20142010 2011 2012 2013
HON_FS15_p5d_HistCashFlow_v113.9%
14.7%15.6%
16.3% 16.6%
20142010 2011 2012 2013
HON_FS15_p5b_HistSegMargs_v1
$39.1
+5-8B
2013
6-9% CAG
R4-6%
Organic C
AGR
2014 2018T
From M&A
2013Segment Profit Segment Margin
4575 bps per
year
2014 2018T
16.3%
~$1.00 EPS
$40.316.6%
18.5%20.0%$46$51
HON_FS15_p5e_LongTermSales_v1
SALES
EARNINGS PER SHARE (Ex-Pension MTM)1 FREE CASH FLOW 2, 3
SEGMENT MARGIN
SALES (in billions) SEGMENT PROFIT/MARGIN
Despite significant currency headwinds and lower global GDP growth, Honeywell delivered strong performance against our first five-year plan ending in 2014, growing sales by 6% on a compounded annual basis and expanding segment margins by 330 basis points. Honeywell is on track to achieve our current five-year financial targets. We expect that improving end markets, new product introductions, penetration inHigh Growth Regions, and benefits from our HOS Gold initiative will drive both growth and productivity throughout the company. Additionally, our strong balance sheet will allow us to thoughtfully deploy capital over the five-year horizon to generate an incremental dollar of EPS by 2018.
1 EPS Excludes Pension Mark-to-Market Adjustments.2 Operating Cash Flow Less Capital Expenditures.3 Includes Cash Pension Contributions of $0.7B (2010), $1.7B (2011), $1.0B (2012) and $0.2B (2013).
PERFORMANCE TRACK RECORD
FIVE-YEAR PLAN
Our reconciliations of non-GAAP measures to GAAP measures accompany this document and are also available at www.honeywell.com/investor.
187% Five Year Total Shareowner
Return vs. S&P 500 of 105% (2010-2014)
~$1.3B Capital Expenditures
for 2015
~30-40% Estimated IRR on Capital Expenditure Investments
for Growth in PMT
15% Dividend Rate
Increase in October2014
2015FACT SHEET
