Electrical Products Group Conference Dave Cote, Chairman & CEO
Key Messages Outperformance Continues - YesStill Undervalued Versus Peers Continues Through 2015, 2016, And Achievement Of New 5-Year Plan Businesses Well Positioned To Grow - Aero And PMT Inflection Points - ACS Strong And…
HON Business Model One Honeywell Culture Great Positions In Good Industries 5 Initiatives / 12 Behaviors Acquisitions Add Value Portfolio Management Resource Review Balanced Portfolio - CEO Interviews Top 200 Roles - Long /…
1Q 2015 Financial Summary (M except per share amounts) 1Q14 1Q15 Sales 9,679 9,213 (5%) Decrease Core Organic (1) Up 2% Segment Profit 1,596 1,721 8% Increase 220 bps Margin Expansion Margin % 16.5% 18.7% Net Income 1,017…
2Q15 Preview Sales Change Margin Change Comments BGA Engine Deliveries Aero (5%) - (7%) Up 140 - 160 bps Continued R&O Growth D&S International Growth 1 - 2% Core Organic Strong Gas Turbo Volume ACS (1%) - (3%) Up 80 - 100 bps…
2015 Financial Guidance Summary (B, except EPS) Sales Segment Margin EPS Free Cash Flow (Ex-Pension MTM) Up Down (2) - (3)% 170 - 200 Up 8 - 11% Up 8 - 10% Up 3% Core Organic bps 39.0 18.3% 6.00 4.2 40.3 16.6% 5.56 3.9…
Portfolio Great Positions In Good Industries Institutional & Residential Infrstruct. Sensing & Control Scanning & Mobility Advanced Materials Industrial Commercial Industrial Safety U.S. New Equipment non-res 21% Homes &…
HON Growth Factors: Next 5 Years Unmatched Significant Platform Wins: 737MAX, 777X, C919 130B+ New Wins Upgrades Expand Growing Installed Base Aerospace Leading Aircraft Connectivity Revolution Global Turbo Penetration Up 10 pts…
High Growth Regions 2014 Sales By Region HON Position 23% Global Economic Shift Into High Growth 45% HGR Regions Will Continue U.S. 40.3B Positioned In The Right Places 32% Other Developed Deploying The One HON Business…
HOS Gold Growth And Productivity What Is It Company Analytically Broken Into 74 Gold Enterprises Brings All Best Practices Together To Focus On Total Enterprise X-Matrix Implementation Breakthrough Goals Established - Andreas…
Software Growth Create Basis For Growth Market Introductions Get The Machinery Right Primus Epic Upgrade Tool CMMI Level 5 In 2015 MyGDC (Global Data Center) This Is HUGE Aero Mobile App Establish Centers Of Excellence Navigation DB…
Honeywell User Experience Accomplishments New Product Highlights Creating Solutions That Are SmartlineTM Transmitter Easier To Use More Intuitive, Efficient, Productive and Easy To Configure Desirable Interactive Display Reduces…
Cost Focus Continues Were Still Mindful That Sales Minus Costs Equals Income Sales Growth Leverages Fixed Costs Process Initiatives Yield Effectiveness And Efficiency - HOS Gold - Functional Transformation Funded Restructuring…
Census Developed Markets High Growth Regions (Index, YoY Growth) (Index, YoY Growth) 160 500 Sales 156 Sales 150 Census 450 Census 434 400 140 350 301 130 130 300 120 256 250 225 110 200 101 100 150 93 90 100 80 50…
Cash Over 5-Year Plan Cash Flow From Operations Deployment Priorities 30-33B Investing In High ROI CAPEX - 5-6B Over 5-Year Plan CAPEX - PMT Capex Cycle Peaks 2015 50% To Pay A Competitive Dividend Net M&A, Growth Share - Grow…
Our M&A Framework Process Discipline Tight Connection To Our Strategy Acquisition Framework Intact - Constant Screening, Relentless Discipline - IRRWACC; Double Digit ROI By 5th Year - No Zeal For The Deal Mentality - Accretive…
Cash Deployment Net Cash Position Deployment Change (B) 1Q 2015 Comments Keep Net Cash At 1-2B Cash 8.3 (Mostly Outside U.S.) Preference Remains M&A Debt (9.7) (Mostly Inside U.S.) Cash 1-2B Used For Incremental Share Repurchase…
Why Own HON Outperformance Continues Through New 5-Year Plan Businesses Well Positioned To Grow - Aero And PMT Inflection Points - ACS Strong And Steady - Seed Planting Effective HOS Gold Delivering Growth And Productivity…
21 Electrical Products Group Conference May 18, 2015
Appendix Reconciliation of non-GAAP Measures to GAAP Measures 22 Electrical Products Group Conference May 18, 2015
Reconciliation Of Segment Profit To Operating Income And Calculation Of Segment Profit And Operating Income Margins (M ) 2013 2014 Segment Profit 6,351 6,696 Stock Based Compensation (1) (170) (187) Repositioning and Other (1, 2)…
Reconciliation Of Segment Profit To Operating Income And Calculation Of Segment Profit And Operating Income Margins (M ) 1Q14 1Q15 Aerospace 703 752 Automation and Control Solutions 471 516 Performance Materials and Technologies…
Reconciliation Of Cash Provided By Operating Activities To Free Cash Flow (M ) 1Q14 1Q15 2014 Cash Provided by Operating Activities 688 421 5,024 Expenditures for Property, Plant and Equipment (192) (165) (1,094) Free Cash Flow 496…
Reconciliation Of EPS To EPS, Excluding Pension Mark-to-Market Adjustment 2014(1) EPS 5.33 Pension Mark-to-Market Adjustment 0.23 EPS, Excluding Pension Mark-to-Market Adjustment 5.56 (1) Utilizes weighted average shares of 795.2…
Calculation Of EPS At Tax Rate Of 26.5% (M except per share amounts) 2Q14 Income Before Taxes 1,523 Taxes at 26.5% 404 Net Income at 26.5% Tax Rate 1,119 Less: Net Income Attributable to the Noncontrolling Interest 27 Net Income…
Net Cash Reconciliation (M ) 1Q 2015 2014 Cash and cash equivalents 6,575 6,959 Short term available for sale investments 1,750 1,463 Cash 8,325 8,422 Commercial Paper 2,695 1,647 Current maturities of long-term debt 1,304 939…
Core Organic Sales Growth Reconciliations Honeywell 1Q 2015 Organic sales growth 1% Raw Materials Pricing in R&C 1% Core organic sales growth 2% PMT 1Q 2015 Organic sales growth (1%) Raw Materials Pricing in R&C 4% Core…
Discontinued Operations Reconciliation (B) 2003 Sales - Total Honeywell 23.1 Sales - CPG 1.0 Sales - Continuing Operations 22.1 30 Electrical Products Group Conference May 18, 2015
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