Performance Materials And Technologies Investor Conference Houston, TX November 4, 2014
Performance Materials and Technologies Darius Adamczyk President & CEO
Key Messages Rich Pipeline Aligned with Higher Growth Markets Leadership positions across broad portfolio & high return applications Customer performance optimization focus generates strong win rates with recurring revenue…
PMT Business Overview Fluorine Balanced portfolio 10B Specialty Products 10% UOP geographically diverse in sales Products 11% 31% Resins & 17% 22,000 employees 18% Chemicals 31% serving 100 countries segment margin HPS…
Solutions For Higher Value Industries Key Drivers for PMT Growth Oil & Other Refining On-purpose Petrochemicals MMM, P&P 20% 18% 6% Midstream & Downstream Gas Upstream & Deepwater 16% Unconventional, Shale Gas Refrigerants…
Accelerating Energy Markets Key Markets Growth Rates Leadership Position Proof Points Honeywell 5 year growth rate 1419 HPS UOP Market rate (various sources) Accelerate project 5 bottom-of-the-barrel by up to 6 mos. projects…
Solutions Across The Oil & Gas Value Chain Upstream Midstream Downstream Reservoir Wellhead And Off-Shore Gas Pipeline LNG Refining Petrochemicals Modeling Optimization Processing Transportation Liquefaction Fertilizers Multi B…
Exciting Growth Synergies New offerings from collaboration on solving customer needs & joint technology development Timing aligned with transformation to common operating processes Common Application Linkages Gas, LNG and NGL…
Major New Refinery Joint Sales Win Southeast Asia Multi-Million Project Collaborative account management driving differentiated & valued HPS UOP solutions for the customer Value sweet UOP process licensing Software spot…
PMT 2014 Outlook And 2018 Targets Sales (in Billions) Segment Margin 12.3 19.8% - - 9.9 10.2 13.3 17.5% 18% 21.1% 2013 2014E 2018T 2013 2014E 2018T Established Foundations Powering Further Growth 3B+ organic sales…
Platform Set For Further Growth New Markets (in Billions) Globalization (in Billions) Addressable Demand Over 5 Years High Growth Regions as % Total Sales 24B expansion of addressable markets to pursue Accelerated growth across key…
Seed Planting For The Future Investing in game-changing technologies and global application experts to deliver 4.6B in new product sales over next 5 years from over 425 active projects Rich Pipeline 5,000+ Gas to Chemicals…
Honeywell Enablers Leveraging the full HOS Gold & Breakthrough Goals Honeywell toolkit to grow Velocity Product Development VPD the business faster and Honeywell User Experience HUE more profitable than HGR & Globalization Focus…
Key Growth Vectors UOP Expand Core Refining Gas & Coal to Chemicals Gas & NGL Recovery HPS Software, Mobility, Cyber Upstream, Unconventional Instruments, Services Advanced Materials Commercialize LGWP New Applications &…
High ROI Investments Ongoing Sales (in Billions) Key Growth Projects Product First Online 1B 12.3-13.3 14 15 16 in incremental sales from new capacity Gas-to-Chemicals Catalysts UOP Refining Adsorbents UOP Refining Catalysts…
Accelerating Core Strategies Proven products & expertise generating long tail demand Investing for further growth in new capacity, advanced innovations & broader global presence Creating new market spaces in higher value…
UOP Dr. Rajeev Gautam President & CEO
UOP Recap of March Investor Day 2014 Proof Points More than tripled Gas processing sales as percent of total UOP Capture growth in sales since 2012 Natural Gas value chain UOP Russell NGL recovery projects book-to-bill ratio at…
Recap Of Growth Results New Product Sales Sales Backlog B CAGR: 26% B CAGR: 17% B CAGR: 22% 0.9 3.1 2.8 1.5 0.4 1.9 2011 2014E 2011 2014E 2011 2014E Continue strong differentiation Strong macro drivers Backlog at all…
Multiple Sales Points Study and Basic Design and Ongoing Services, Commissioning Engineering Design Construction Revamps, Studies (12-18 months) (1-3 years) (3-4 years) (30-40 years) Licenses Specialized Initial catalyst /…
Refining, Petrochemical And Gas Industries Upstream Midstream Downstream Exploring, drilling and Processing, storage Refining oil and gas producing crude oil and transportation into fuels and chemicals and natural gas…
UOP Roadmap For Growth 4.4 Modular New Modular And Gas Sales (B) Equipment International NGL and LNG & New Gas Turnkey engineering services Offerings Expanded modular portfolio 3.1 New Process Technologies New Process…
Refining Sector Drivers Refining Opportunity Bottom of Barrel Demand Hydrotreating 4-5% Conversion of Bottoms to Light Fuels Maximum On-Road Diesel Sulfur Limits Product Growth 45,000 Regional Mix Factors Environ. Reg.…
Refining Sector Growth Platform Uniflex 5 projects awarded since 2012 in HGR Increases volume of high value clean transportation fuels by 610% making low sulfur diesel instead of coke or fuel oil Uniflex technology for…
Gas To Chemicals Growth Platform Oleflex Oleflex technology for on-purpose production of propylene from LPG Propylene Supply & Demand Propylene demand 150,000 Demand 4.5% CAGR to 2024, Propylene Supply, M MT On-Purpose…
Gas To Chemicals Growth MTO MTO for on-purpose production of ethylene / propylene from coal or natural gas Ethylene / Propylene Supply & Demand Ethylene / Propylene Demand On-Purpose Supply demand growing 300,000 Conventional…
Gas To Chemicals Growth Butadiene On-purpose butadiene technology for production of butadiene from C4s Butadiene Supply & Demand Butadiene demand Demand On-Purpose 4% CAGR Steam Cracker Extraction Supply Gap 12,500 15-25 more…
Honeywell Modular vs. Stick-Built Approach HON Modular Project Phase Stick-Built Customer Benefits Approach Standard design Lower risk Design Unique specs package Higher IRR% Turnkey Project On-site customer engineering…
Modular Equipment Growth Platform Content Redacted 30 PMT Investor Day - November 4, 2014
UOP Position In Natural Gas Value Chain Sulfur Sulfur Recovery Liquids Dry Sweet Gas Recovery Dehydration Liquefaction LNG Natural Gas Mercury Acid Gas Removal Extraction Fractionation Raw Natural Removal (CO2, H2S) Gas…
NGL Recovery Growth Platform UOP Russell Extract high value hydrocarbons from natural gas for petrochemical use NGL from Shale Supply US NGL Supply Growth CAGR = 6.3% Ethane, propane, butane 4,000 Advantaged NGL supply from US…
Summary Strategies to grow faster than the market are working Gas processing growth Gas to chemicals Bottom-of-the-barrel refining Modular equipment Catalyst capacity additions for sold demand is on schedule Backlog at all time…
Honeywell Process Solutions Vimal Kapur President & CEO
Process Solutions (HPS) Recap of March Investor Day 2014 Proof Points 175M of Mega Project wins in first half Capture dynamic growth in of 2014: e.g. South East Asia offshore oil 1. Upstream, Midstream, Offshore, platform that…
Recap Of A Business In Transformation Orders Segment Margin ROIC B CAGR: 5% Significant Margin Expansion 970 bps Growth 3.5 14.7% 3.2 12.5% 2.9 2010 2013 2014E 2010 2013 2014E 2010 2013 2014E Capturing trends In…
Grow In Upstream And Unconventional Oil & Gas Opportunity Why HPS Key Differentiators Low risk global execution capabilities & state of the 9B 6% art platform Build on New NPI to Addressable Market downstream market growth…
Growing Instrumentation Business Opportunity Why HPS Key Differentiators Strong established 12B 6% product brands Addressable Market market growth Leverage 1B+ annual (5 year CAGR) 19 NPIs scheduled in 2014 project…
Grow Software And Aftermarket Service Opportunity Why HPS Key Differentiators Best-in-Class 9B 7% Lifecycle Services LIFECYCLE SERVICES Addressable Market Large untapped potential market growth in over 10,000 installed (5…
HPS Enablers To Accelerate Growth Innovating to Win in the Market Honeywell User Experience HUE Driving 0.8B Transforming Project Execution incremental Focusing on High Growth Regions sales by 2018 Best-in-Class Customer…
Innovating To Win In The Market Automation HPS Leadership Position Offerings Innovations Technology Cost Scale (e.g. channels) Control & Safety Systems Collaboration Station Virtualization Universal I/O Cloud Engineering +…
Honeywell User Experience Embedded In NPI Modularity Platforming Intuitive, Easy to Use Low inventory and Reduced cost and Mobility maintenance cost project design Integrated suite of software Easy installation SKU and…
Transforming Project Execution: LEAPTM Customer Issue: Gap Between Business Case and Reality Actuals: Slower Start, Cost () Late Acceleration Project overruns driven by: and Overruns Difficult / remote locations (deepwater, desert,…
World-Class Global Project Execution Mega LEAP Project Examples EPC Adoption Gas Mega Project in ME Multiple Global EPC firms using LEAPTM to Over 200 engineers from 8 countries working in cloud; Universal Safety I/O used to…
Focusing On High Growth Opportunities Sales Breakdown by Region China Accelerating Globalization 7% Rest of Europe APAC by Focusing on High & Africa 32% 19% Growth Regions 10% 25% Investing in local sales United Middle East…
Driving To Best In Class Customer Satisfaction Mission Improve the customers experience at every touch point Statement from order through the lifetime of the system NPS Promoters Detractors Delivery & Order Support Installation…
HPS 2014 Outlook & 2018 Targets Revenue (in Billions) Segment Margin +200 bps 3.1 3.1 14.7% 2013 2014E 2018T 2013 2014E 2018T Revenue: 20142018 Segment Margin: 20142018 Continue to drive large project wins and High…
Summary Executing on Strategy Key Wins Continuous Innovation Delivering global orders and NPI to grow faster than market Customers embracing products portfolio Expanding services and software footprint in installed base Ready…
UOP And HPS Growth Synergies 50 PMT Investor Day - November 4, 2014
UOP And HPS Integration Greenfield Project Timeline: UOP And HPS Engagement Timeline Pre-Design Design Build Year 1 Year 2 Year 3 Year 4 Year 5 9 months 12 24 months UOP Contract HPS Contract Award Award Process Automation…
UOP And HPS Selling Collaboratively Greenfield Refineries Gas Asian Greenfield Refinery Project Large Middle East Gas Field UOP awarded processes licensing HPS awarded contract as Main Automation Contractor (MAC) to deliver HPS…
UOP And HPS Innovating Together Content Redacted 53 PMT Investor Day - November 4, 2014
Growth Synergies Recap Honeywells ability to incorporate UOP Process and Operating Knowledge into HPS Control and Advanced Software Solutions will enable unmatched Operating Excellence for our refining, petrochemical and gas…
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