Honeywell International : Morgan Stanley Laguna Conference Presentation

MORGAN STANLEY LAGUNA CONFERENCE

VIMAL KAPUR

Chief Executive Officer

SEPTEMBER 12, 2023

FORWARD LOOKING STATEMENTS

We describe many of the trends and other factors that drive our business and future results in this presentation. Such discussions contain forward-looking statements within the meaning

of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes or anticipates will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this presentation can or will be achieved. These forward-looking statements should be considered in light of the information included in this presentation, our Form 10-K and other filings with

the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.

NON-GAAP FINANCIAL MEASURES

This 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; Segment profit margin, on an overall Honeywell basis; Organic sales percentage; Free cash flow; Free cash flow excluding impact of settlements; Free cash flow margin; Adjusted earnings per share; and Adjusted earnings per share excluding pension headwind, if and as noted in the presentation.

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 measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this presentation for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.

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KEY MESSAGES

	1		2			3		4
	SIMPLIFY		GROW			MANAGE PORTFOLIO		ACCELERATOR
• Align with three megatrends		• New products as engine of		•	Enhance M&A capability		• Version 3.0 of Honeywell operating
•	Aviation		organic growth; new innovation		• Bolt-on deals to align to three		system
•	Automation		playbook			megatrends		• Foundation for profitable growth for
•	Energy Transition		• Commercial excellence focus		•	Stay disciplined		existing business / M&A

COMPELLING LONG-TERM FINANCIAL FRAMEWORK

4% - 7%	40 - 60 bps	Mid-Teens+	$25B+
Organic Sales Growth	Segment Margin Expansion	Free Cash Flow Margin	2023 - 2025 Capital Deployment

A Strong Foundation in Place, Poised for Accelerated Growth

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FOCUS ON ORGANIC GROWTH ACCELERATION

Strengths Aligned to Megatrends		Innovation Playbook

ENERGY

TRANSITION

AUTOMATION

AVIATION

DIGITALIZATION

MARKET GROWTH

DD

MSD

HSD / DD

DD

LEADING

HONEYWELL POSITION

• Sustainable Technology Solutions
• Sustainable Building Technologies
• Advanced Materials
• Manufacturing / Supply Chain / Building
• Sensing Technologies
• Diversified Aero portfolio
• Leader in AAM solutions
• Honeywell Connected Enterprise

What is the same

• Continued R&D investments (4% - 5% of sales)
• Driving average 200 bps NPI Vitality increase each year
  What is different
• Greater capital allocation toward new product categories
• Compounding benefits over time

New

	SAM EXPANSION	BREAKTHROUGH
		Increase	INITIATIVES
	Examples: Sensors for EVs,
	Spend	Examples: Quantinuum,
Markets	D&S Global Expansion,
	Green Hydrogen, AAM
Solstice for Heat Pumps

NPI VITALITY TO	SAM EXPANSION
KEEP SHARE
NPI vitality has increased	Examples: HCE,	Increase
Spend
>1,000 bps in the last five	Sustainability Solutions,
years	Aero Electrification
Existing	Offerings	New

AAM: Advanced Aerial Mobility. EV: Electric Vehicles.

End Market Setup, Innovation Playbook Driving Increased Organic Growth

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PORTFOLIO SHAPING

1 SIMPLIFICATION AND

ALIGNMENT WITH MEGATRENDS

Current Indicative Sales

Digitalization	Software and
	Related
Energy
Transition

Automation

Aerospace

2 TARGETED PORTFOLIO

OUTCOMES

2022 TARGET

Recurring 32% 35%+ Revenue

Gross 37% 40%+

Margin

Segment 22% 25%+ Margin

2023+ Priorities

3 CAPITAL DEPLOYMENT

FOCUS

$36B - $39B

Total Capital Deployment Capacity

	Additional	$11B - $14B
	Potential	Available Cash
	Deployment	and Debt Capacity
		$13B+
	$25B+	Share Repurchases
	and M&A
	Re-upped	~$3B
commitment for
Capex
2023 - 2025
		~$9B
		Dividends

• Prioritize bolt-on M&A

• Reshape portfolio through strategic pruning

• Fund Honeywell innovation engine

Data represents 2022 sales. Honeywell gross margin excludes customer-funded R&D, in line with the reporting change made in 1Q23. Note: Prior 2022 - 2024 of $25B+ commitment made in March 2022 Investor Day.

High-Grading Portfolio

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