Honeywell Aerospace Air Transport & Regional. John Bolton, President AT&R

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Lucy Russell
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1 Honeywell Aerospace Air Transport & Regional John Bolton, President AT&R

2 Forward-looking Statement This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements 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 from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission. 2

3 Honeywell Today Automation & Control Solutions ~$13.3B ~41% HONEYWELL 2010E REVENUE: ~$33B Aerospace ~$10.7B ~33% AEROSPACE 2010E REVENUE: ~$10.7B America 58% EMEA 26% Asia PAC 16% AEROSPACE FINANCIAL SUMMARY $12.7B $12.2B 18.0% 18.2% *Commercial Mix Sales $10.8B ~$10.7B 17.6% ~17.6% Margin Specialty Materials ~$4.5B ~14% Transportation Systems ~$4.0B ~12% Global Scope, Great Positions In Good Industries 2010E 3

4 Winning In The Marketplace Customer Focused Products & Services Pursuits $100B+ OEM Wins COMAC C919 - $11B+ Wins 90%+ Airline Aftermarket Selections Execution Development Program Experience 20% Less Software Cycle Time 50% More Distributed Work Installed Base Support Customer and Product Support Best in Class Recognition +65% - Net Promoter Score Winning Share With OEMs And Installed Base 4

APU Proven Reliability & Performance APU, Avionics, ECS, Engine Components, W&B Space, Missiles & Munitions 18% Electrical International (OEM 35% &

5 Air Transport & Regional 2010E SALES: ~$3.7B COMPETITIVE STRENGTHS OEM 35% Services 20% Aftermarket Aftermarket 65% 23% Technology Leadership EGPWS, IntuVue Radar, Runway Safety, Navigation, APU Proven Reliability & Performance APU, Avionics, ECS, Engine Components, W&B Space, Missiles & Munitions 18% Electrical International (OEM 35% & Aftermarket) 19% Mechanical 65% Aftermarket OEM 20% APAC 26% EMEAI 35% Americas 39% System Integration Capabilities Mechanical Systems, Flight Controls Leading Customer Support 93% Flight Hour Basis For Regional Mix Global Leader Differentiated Value For Customers 5

Air Transport & Regional OE 1,500 1,000 500 Global OE Deliveries: Supply +4-6% CAGR 2004 2005 2006 2007 2010 2011 2012 2013 FOCUS AREAS VPD And Global Product Development Recovery Planning / Rate

6 Air Transport & Regional OE 1,500 1, Global OE Deliveries: Supply +4-6% CAGR FOCUS AREAS VPD And Global Product Development Recovery Planning / Rate Readiness Global Production / Procurement Refocus Winning The Right Business HIGHLIGHTS Historically High Backlog Secured Major Role On C Flight Controls Narrowbody Production Increases Technology Leadership Across Key Platforms Strong Backlog Holding Delivery Rates High 6

Flight Control System Fly By Wire Technology AutoLand Auto-Pilot Flight Deck MCP Avionics

7 COMAC C919 Honeywell Systems Content APU, Engine Control, Installation Kit, & Starter Generator Improved version of 737/A320 APU (131-C9C) Wheels and Brakes Carbon solution Flight Control System Fly By Wire Technology AutoLand Auto-Pilot Flight Deck MCP Avionics IRS & Air Data LaserRef VI Adv. Air Data System >2,000 C919 Aircraft Another Step For Honeywell China 7

8 Air Transport & Regional A/M Flying Hours: Demand FOCUS AREAS 12% 8% 4% 0% -4% 8.6% 6.8% 4.2% 6.5% 4.5% 4.7% 4.2% 4.0% 3.9% 3.5% 4.1% 3.9% Flight Hours 3.6% 3.1% 3.5% 3.6% GDP A/M Re-coupling To Flight Hours APUs And Avionics Leading Recovery Value Propositions Aligned To OE & A/M Winning Airline Selectable Content STRATEGY HIGHLIGHTS Flexible Service Offerings Regionally Focused Org. Value Added Retrofits, Modifications, And Upgrades Demand Firming For Spares and R&O 100% APU Selection In China Leading Customer Support Monitoring Retirements / Parked Fleet Recovery Underway Well Positioned To Modernize Fleet 8

9 Air Transport & Regional AM Trends 20% Spares & Repairs Revenue Growth 2011 AT&R Global Flt Hours (in Millions) Y/Y Growth (%) 0% -20% Flt Hrs Spares Repa irs Flight Hours & Re-coupling To Aftermarket Flight Hours De-coupled +4-5% +6-8% (2-3%) +4-6% -40% E 2011E Significant Spares Destocking In 2009 R&O Activity More Closely Tracks Flight Hours Parked A/C Supply Delayed A/M Recovery End-of-Destocking Drives Uptick In Spares Activity 4Q10E ATR A/M Growth 2X Flight Hours Flight Hour Trends Follow GDP Growth Flight Hours Above Previous Cycle Peak New Deliveries Partially Offset By Retirements Inventory-to-Flight Hours Ratio Stabilizes Aftermarket To Re-couple To Aircraft Utilization 9

Technology Upgrades SmartView SmartRunway / SmartLanding Increases Safety & Situational Awareness Proven Synthetic Vision System - Combining

Runway Incidents Cost Airlines $1B annually Delays, Inspections, Repairs and Injuries NTSB Top 10 Global Safety Concerns Software Updates to

10 Technology Upgrades SmartView SmartRunway / SmartLanding Increases Safety & Situational Awareness Proven Synthetic Vision System - Combining EGPWS and Advanced Display Technologies Provides Natural & Intuitive 3D Terrain - Daytime Out The Window View Improves Airport Access Reduced Runway Incidents Cost Airlines $1B annually Delays, Inspections, Repairs and Injuries NTSB Top 10 Global Safety Concerns Software Updates to Existing Equipment; Less Than One Hour Installation >$250M Opportunity Over The Next 5 Years Minimums and Pilot Training Making Flying Safer, More Efficient 10

11 ATM Modernization HON Capabilities Leader In Avionics, Onboard Intelligence Only US Co. Member Of The SESAR JU Only Total System Solution Solutions Ground Station SmartPath GBAS Turnkey Install, Support, Training Lifecycle Logistics Data Link Traffic & Weather ADS-B Multi-Mode Data Link SATCOM Navigation Inertial Navigation Global Positioning HON Leading Position Flight Mgmt Next Gen Upgrades 4D Trajectories Data Routing Displays ADS-B Display Advanced Weather Airport Surface Mgmt Legacy System Inefficient Upgrade Precision Navigation / Surveillance Advanced Flight Planning / Controls Data Communications / Displays ~$6B Annual Industry Value Created Reduced Fuel and Emissions Improved Schedule Certainty ~$2B Opportunity Over The Next 5 Years HON In Sweet Spot Of ATM Shift From Ground To Air 11

12 Summary Building On Competitive Advantages Through Technology Leadership And World Class Customer Support Capitalizing On Operational Efficiency Gains Focused On Flawless Execution Of Key Programs Positioned To Capture Industry Growth Expanding Global Focus And Reach Continue To Win The Right Business Through Differentiated Value 12

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14 Leader Profile John Bolton was named President of the Air Transport & Regional Strategic Business Unit of Honeywell Aerospace in January Global customers include aircraft manufacturers, engine manufacturers, airlines, leasing companies, freight companies and service providers. Most recently, John served as Vice President of the Aftermarket for the Business & General Aviation Strategic Business Unit, where he leveraged extensive cross-functional, product and customer experience to provide strategic and tactical leadership to this $1.2B business. John Bolton President, Air Transport & Regional John joined Honeywell s Transportation Systems organization in 1993 as an engineer responsible for production, product development/qualification as well as lean manufacturing implementation. He transitioned to Aerospace in 1996 as Manufacturing Leader in the Rocky Mount (North Carolina) facility. Since that time, he held a series of progressively responsible management positions in manufacturing, product line management, aftermarket sales and marketing. In 2002 he was named Product Sales Director for Aerospace s Engine, Systems & Accessories business where he was responsible for meeting revenue objectives for the Aviation Aftermarket Services organization. This was followed in 2004 with his selection as Director of Customer Support for the $1.6B Aviation Aftermarket Services business, where he led strategic customer satisfaction initiatives to simplify, standardize and enhance the customer experience. Prior to joining Honeywell, John served as Production Department Manager for GTE. John has a Masters of Business Administration from Duke University and a Bachelor s of Science degree in engineering from Clarkson University in New York. He is a certified Six Sigma Black Belt. 14

Honeywell Aerospace Fleet Experience

Honeywell Aerospace Fleet Experience Rob Wilson Vice President, Business & General Aviation Carl Esposito Vice President, Marketing & Product Management Forward Looking Statements This report contains