MORGAN STANLEY LAGUNA CONFERENCE Roger Fradin, Vice Chairman
3 Todays Discussion Honeywell Delivering In Challenging Macro Environment - Great Positions In Good Industries, HOS Gold Execution Helping Offset Macro Headwinds - Continued Strong Margin Expansion - Strong 1H 2015 Performance,…
4 First Half 2015 Financial Summary (M except per share amounts) 1H14 1H15 Sales 19,932 18,988 5% Decrease Core Organic Up 2% Segment Profit 3,305 3,524 7% Increase Margin % 16.6% 18.6% 200 bps Margin Expansion Net Income…
5 2015 Planning Update % HON 2015 YoY Outlook Sales - Neutral + What Were Seeing / Expecting 29% Continued Commercial Growth (Fire, Security) Non- Good Growth In Americas, EMEA; Outperforming In China Residential Second…
6 Elster Acquisition - Strategic Rationale Good Industry Where We Have Strong Experience - Strong Global Market Forces Favorable To Natural Gas Including Legislation, Efficiency, Cost Adds And Environmental Impact 2B -…
7 Elster Portfolio GAS ELECTRICITY WATER Products and Solutions for Advanced Electricity Metering Metering and Communication Measurement, Regulation, Products and Services Systems for Water Utilities Control, and Application…
8 Why HON M&A Works 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…
9 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…
Morgan Stanley Laguna Conference September 17, 2015
11 Appendix Reconciliation of non-GAAP Measures to GAAP Measures Morgan Stanley Laguna Conference September 17, 2015
12 Reconciliation Of Segment Profit To Operating Income And Calculation Of Segment Profit And Operating Income Margins (M ) 1H14 1H15 Segment Profit 3,305 3,524 (1) Stock Based Compensation (102) (91) Repositioning and Other…
13 Calculation Of EPS At Tax Rate Of 26.5% (M except per share amounts) 1H14 1H15 Income Before Taxes 2,934 3,226 Taxes at 26.5% 778 855 Net Income at 26.5% Tax Rate 2,156 2,371 Less: Net Income Attributable to the…
14 Reconciliation Of Cash Provided By Operating Activities To Free Cash Flow (M ) 1H14 1H15 Cash Provided by Operating Activities 2,029 1,829 Expenditures for Property, Plant and Equipment (421) (408) Free Cash Flow 1,608…
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