Skip to main content JP Morgan Industrials Conference – Honeywell International Inc. Investor Presentation | Shale Experts
Loading...
Pm

JP Morgan Industrials Conference – Honeywell International Inc.

Honeywell International Inc. · Mar 11, 2014 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JP Morgan Industrials Conference – Honeywell International Inc. – slide 1
    J.P. MORGAN INDUSTRIALS CONFERENCE Dave Cote Chairman & CEO
  2. JP Morgan Industrials Conference – Honeywell International Inc. – slide 2
    Key Messages HON Business Model Working - Reflected In The Results, Achievement Of 2014 Targets Whats Next For HON - Breakthrough Innovations Driven By Differentiated Processes And Technologies We Will Continue To Outperform -…
  3. JP Morgan Industrials Conference – Honeywell International Inc. – slide 3
    Evolution Of Honeywell HON Evolution 2002 Addressing The Portfolio / Legacy Issues 2004 Building Performance Culture, Gaining Momentum 2006 Executing Strategies / Enablers Working 2008 Built Financial Track Record 2010…
  4. JP Morgan Industrials Conference – Honeywell International Inc. – slide 4
    HON Business Model One Honeywell Culture Great Positions In Good Industries 5 Initiatives / 12 Behaviors Acquisitions Are Incremental - Bolt On Or Consistent Business Model Portfolio Management Resource Review Balance -…
  5. JP Morgan Industrials Conference – Honeywell International Inc. – slide 5
    2014 Performance Vs. Targets Sales Segment Margin (B) About 3.0B Of Headwinds 60 Bps Of Headwinds Lower Global Growth Lower Global Growth - GDP 3.1% vs. 3.5% - Limiting Volume Leverage Planning Assumption 16.6 16.0 41.0 - -…
  6. JP Morgan Industrials Conference – Honeywell International Inc. – slide 6
    Growth Vs. Peers Sales EPS* Op Margin* (Index, YoY Growth) (Index, YoY Growth) (% Of Sales) 140 200 20% Honeywell Peer Average 180 130 17% 16.8% 166* 160 121 16.0% 120 120 14.2%* 140 14% 128 110 120 11% 100 10.8%…
  7. JP Morgan Industrials Conference – Honeywell International Inc. – slide 7
    2018 Organic Growth Targets Sales Segment Profit / Margin (B) Segment Profit Segment Margin +220-370 Bps Adding 7-12B Of Sales 18.5 - 46 20.0% - 51 40.3 - 16.6 39.1 40.7 - 16.3% 16.9% 2013 2014E 2018T 2013 2014E…
  8. JP Morgan Industrials Conference – Honeywell International Inc. – slide 8
    2018 Targets By SBG Sales CAGR Segment Margin 5-Year 2018T LT Target Aero 3 - 5% 22 - 23% 25% ACS 4 - 6% 16.7 - 18.2% 20% PMT 5 - 6% 21 - 22.5% 25% TS 6 - 9% 16 - 17% 20% Turbo All Businesses ContributingWith More…
  9. JP Morgan Industrials Conference – Honeywell International Inc. – slide 9
    Cash Next 5 Years Cash Flow From Operations Deployment Priorities 30-33B Investing In High ROI CAPEX - 5-6B Next 5 years; PMT Cycle Peaks 2015 CAPEX Pay A Competitive Dividend 50% To - Grow Earnings Net M&A, Growth Share…
  10. JP Morgan Industrials Conference – Honeywell International Inc. – slide 10
    2018 Targets + M&A Sales Segment Profit / Margin (B) Segment Profit Segment Margin 1.00 EPS +5-8B From M&A 18.5 - 20.0% 46 - 51 40.3 - 16.6 39.1 40.7 - 16.3% 16.9% 2013 2014E 2018T 2013 16.3% 2014E 2018T…
  11. JP Morgan Industrials Conference – Honeywell International Inc. – slide 11
    Accretive M&A Strategy What You Should Expect Key Focus Areas Strong Pipeline Of Potential Targets Aerospace - Constant Screening, Relentless Discipline - Connectivity - Differentiated Technologies High Growth New Adjacencies -…
  12. JP Morgan Industrials Conference – Honeywell International Inc. – slide 12
    Basis For 2018 Targets Evolving Growth Strategy What You Can Expect Excellent Growth Portfolio Meaningful Inflection Points - Great Positions In Good Industries - Improving End Markets - Diversity Of Opportunity - High ROI Capex…
  13. JP Morgan Industrials Conference – Honeywell International Inc. – slide 13
    Portfolio Great Positions In Good Industries Institutional & Residential Infrstruct. Sensing & Control Scanning & Mobility Advanced Materials Industrial Commercial Safety Industrial U.S. New Equipment non-res 22% residential…
  14. JP Morgan Industrials Conference – Honeywell International Inc. – slide 14
    Aligned To Key Macro Trends Linked To 50% Of Our Portfolio Energy Efficiency Connected Homes, Buildings, Industrial Facilities Increased Global Turbo Penetration Demand For Energy Expected To Double By 2030 Clean Energy Natural…
  15. JP Morgan Industrials Conference – Honeywell International Inc. – slide 15
    Well Balanced Portfolio Portfolio Mix 2013 vs. Prior Peak* (% Of 2013 Sales) (Organic Sales Growth vs. Peak) Commercial OE Long Cycle (ex-D&S) D&S Defense & Space 40% Of HON Sales TS Comml Aero AM Short Cycle BSD -15%…
  16. JP Morgan Industrials Conference – Honeywell International Inc. – slide 16
    High Growth Regions HGR Sales Sales / Census (HON Sales) (Index, YoY Growth) 39.1B HGR Sales HGR Census +6% Total HON CAGR HGR 23% 320% +15% CAGR Other 22.1B Developed 32% 150% HGR 10% +6% Other CAGR Developed 33%…
  17. JP Morgan Industrials Conference – Honeywell International Inc. – slide 17
    Why We Lead Disruptive Technologies No One Else Has Aerospace Connectivity, Cross Portfolio Innovation Unmatched Mechanical / Electronics Capability Multi-Brand, Multi-Channel Strategy Automation And Huge HGR Upside Control…
  18. JP Morgan Industrials Conference – Honeywell International Inc. – slide 18
    HOS Gold Growth And Productivity VPDTM Bronze+ Maturity HOS Bronze+ Maturity 100% 100% 85% 70% 30% 31% 8% 2012 2013 2014E 2018E 2010 2012 2014E 2018E 130 VPDTM Units 270 Plants Breakthrough Technologies Continuous…
  19. JP Morgan Industrials Conference – Honeywell International Inc. – slide 19
    HOS Gold Execution What It Means What Does It Take Continuous Improvement Beyond General Management Ownership The Four Walls Of The Factory - Order To Cash: Customer Demand To Delivery - Driving Sustainable Improvements - NPI:…
  20. JP Morgan Industrials Conference – Honeywell International Inc. – slide 20
    Honeywell User Experience What Is It Why Is It Different Creating Solutions That Are Systematic Process Focused On: - Easier To Use - Differentiated Brand Experience - More Intuitive - Users, Installers, Maintainers - More…
  21. JP Morgan Industrials Conference – Honeywell International Inc. – slide 21
    Software Capability Maturity What Is It Why Is It Important To HON Capability Maturity Model Integration 50%+ HON Engineers Do Software - Software Process Certification - Performing At Highest Maturity Levels - 5 Levels Of Maturity…
  22. JP Morgan Industrials Conference – Honeywell International Inc. – slide 22
    Margin Expansion Initiatives Repositioning (M) Honeywell Operating System - Driving Continuous Improvement 100M Incremental Direct Materials / Purchasing 450 - Focus On Supplier Quality And Performance OEF Funded* 2014E 2015E…
  23. JP Morgan Industrials Conference – Honeywell International Inc. – slide 23
    Organizational Effectiveness OEF Sales / Census (Index, YoY Growth) 16.6-16.9% 200 Sales 14.7% Census 13.3% Developed Market Census 180 +77% 29.6% 27.9% 26.6% OEF 160 Down (300) bps 2009 2011 2014E 140 Segment Margin…
  24. JP Morgan Industrials Conference – Honeywell International Inc. – slide 24
    Functional Transformation Functional Cost % Of Sales What Were Doing 380 bps Improvement Common Processes And Tools 9.6% Leveraging Common Systems 5.8% 4% Analytics/Reporting Driving Change 2004 2013 Target Greater Speed And…
  25. JP Morgan Industrials Conference – Honeywell International Inc. – slide 25
    Long Term Outlook 2010-2014E 2014E-2018E ORGANIC 6% CAGR +4-6% CAGR SALES Exiting Recession MARGIN 16.8% 18.5-20% EPS 16% CAGR Double-Digit Growth FCF 19B 25-28B M&A 4B 10B+ SPEND Calibrated To DIVIDEND Grow…
  26. JP Morgan Industrials Conference – Honeywell International Inc. – slide 26
    Why HON Will Outperform Robust New Product Pipeline 1/2 pt Organic - Propelled By HUE, VPD, Software Capability/CMMI From HUE Growth Accelerated Penetration Of High Growth Regions - End To End Local Capabilities Established 50% Of…
  27. JP Morgan Industrials Conference – Honeywell International Inc. – slide 27
    Appendix Reconciliation of non-GAAP Measures to GAAP Measures 27 J.P. Morgan Aviation, Transportation and Industrials Conference March 11, 2014
  28. JP Morgan Industrials Conference – Honeywell International Inc. – slide 28
    Reconciliation Of Segment Profit To Operating Income Excluding Pension Mark-To-Market Adjustment And Calculation Of Segment Profit And Operating Income Margin Excluding Pension Mark-To-Market Adjustment (B) 2003 2004 2005 Segment…
  29. JP Morgan Industrials Conference – Honeywell International Inc. – slide 29
    Reconciliation Of Segment Profit To Operating Income Excluding Pension Mark-To-Market Adjustment And Calculation Of Segment Profit And Operating Income Margin Excluding Pension Mark-To-Market Adjustment (B) 2006 2007 2008 Segment…
  30. JP Morgan Industrials Conference – Honeywell International Inc. – slide 30
    Reconciliation Of Segment Profit To Operating Income Excluding Pension Mark-To-Market Adjustment And Calculation Of Segment Profit And Operating Income Margin Excluding Pension Mark-To-Market Adjustment (M ) 2009 2010 2011 2012 2013…
  31. JP Morgan Industrials Conference – Honeywell International Inc. – slide 31
    Reconciliation Of EPS To EPS, Excluding Pension Mark-to-Market Adjustment 2003 (1) 2004 (2) 2005 (3) EPS, Previously Reported 1.50 1.45 1.92 Effect of Pension Accounting Change (0.11) 0.22 0.29 EPS 1.39 1.67 2.21 Pension…
  32. JP Morgan Industrials Conference – Honeywell International Inc. – slide 32
    Reconciliation Of EPS To EPS, Excluding Pension Mark-to-Market Adjustment 2006 (1) 2007 (2) 2008 (3) EPS 2.77 3.35 1.08 Pension Mark-To-Market Adjustment 0.02 0.01 2.74 EPS, Excluding Pension Mark-to-Market Adjustment 2.79 3.36…
  33. JP Morgan Industrials Conference – Honeywell International Inc. – slide 33
    Reconciliation Of EPS To EPS, Excluding Pension Mark-to-Market Adjustment 2009(1) 2010(2) 2011(3) 2012(4) 2013(5) EPS 2.05 2.59 2.61 3.69 4.92 Pension Mark-to-Market Adjustment 0.64 0.41 1.44 0.79 0.05 EPS, Excluding Pension…
  34. JP Morgan Industrials Conference – Honeywell International Inc. – slide 34
    Reconciliation Of Cash Provided By Operating Activities To Free Cash Flow And Calculation Of Cash Flow Conversion Percentage (M ) 2004 2005 2006 2007 Cash Provided by Operating Activities 2,253 2,442 3,211 3,911 Expenditures for…
  35. JP Morgan Industrials Conference – Honeywell International Inc. – slide 35
    Reconciliation Of Cash Provided By Operating Activities To Free Cash Flow And Calculation Of Cash Flow Conversion Percentage (M ) 2008 Cash Provided by Operating Activities 3,791 Expenditures for Property, Plant and Equipment (884)…
  36. JP Morgan Industrials Conference – Honeywell International Inc. – slide 36
    Reconciliation Of Cash Provided By Operating Activities To Free Cash Flow And Calculation Of Cash Flow Conversion Percentage (M ) 2009 2010 2011 2012 2013 Cash Provided by Operating Activities 3,946 4,203 2,833 3,517 4,335…
  37. JP Morgan Industrials Conference – Honeywell International Inc. – slide 37
    Discontinued Operations Reconciliation (B) 2003 2004 2005 2006 Sales - Total Honeywell 23.1 25.6 27.7 31.4 Sales - CPG 1.0 1.1 1.2 1.1 Sales - Continuing Operations 22.1 24.5 26.5 30.3 37 J.P. Morgan Aviation, Transportation…

From the store

Browse maps, data & reports in the Shale Experts store