Honeywell International Inc. · NASDAQ:HON
Honeywell International — Shareholder Meeting (April 2020)
28 slides from Honeywell International's shareholder meeting presentation, Apr 8, 2020
Slide 1: 2020 Shareowner Engagement Materials
2020 shareowner engagement materials April 2020
Slide 2: Forward Looking Statements
2020 Shareowner Engagement – April 2020 Forward Looking Statements This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that ad
Slide 3: Response to COVID-19
Response to covid-19 Prioritizing Employee Health And Safety While Supporting the Front-Line Employee health and safety is a top priority; rapidly developing and implementing measures to enable safety and productivity Expanded healthcare coverage, including reimbursement for COVID-19 testing Full ye
Slide 4: Honeywell Portfolio
Honeywell Portfolio Well Diversified Portfolio Positioned for Sustainable Growth Represents 2019 sales. Differences between segment sales figures and the sum of sales figures for the businesses within each segment are due to rounding TOTAL 2019 SALES ~$37B $14.1B Aerospace COMMERCIAL OE COMMERCIAL A
Slide 5: Premier Technology Transformation Update
Premier technology transformation update Significant Progress in 2019 on Transformation Initiatives Supply Chain Transformation Honeywell Digital Honeywell Connected Enterprise Rationalized over 500 software applications Cleansed 5.2 million critical master data records Reduced ERP systems from 71 t
Slide 6: Financial Performance Exceeding Our Commitments
Priority 2017 2018 2019 Organic Growth 4% 6% 5% Segment Margin Expansion 70 bps 60 bps 150 bps Adj. Free Cash Flow as % of Net Sales 12% 14% 17% Adj. EPS Growth $7.15 8% $8.01 12% $8.16 10% ex-spins Capital Deployment $6.1B $7.6B $7.8B Financial Performance Exceeding Our Commitments 2019 Adjusted EP
Slide 7: Shareowner Value Creation
Shareowner value creation Outstanding Long-Term Return Source: S&P Capital IQ, as of December 31, 2019. TSR is calculated by the growth in capital from purchasing a share in the company and assuming dividends (regular and special) and share distributions received from any spins are reinvested in the
Slide 8: Corporate Governance Excellence
Corporate Governance excellence ü Robust Shareowner Engagement Program ü Board Oversight of ESG ü Proxy Access Right ü Thoughtful Board Evaluation Process ü 15% Threshold to Call Shareowner Meetings ü Formal Onboarding Program for New Directors ü Annual Director Elections ü Majority Vote Standard ü
Slide 9: Best-in-Class Board Composition
Best-in-class board composition Diverse, Independent and Highly-Qualified Board 2020 Shareowner Engagement – April 2020
Slide 10: Comprehensive Risk Oversight Framework
Comprehensive risk oversight framework Board Diversity Enables Thoughtful Risk Oversight Focus on Strategic, Human Capital and ESG Risks Robust Risk Oversight Comprehensive Enterprise Risk Management (ERM) process enables identification of key risk areas through “top down” and “bottom up” assessment
Slide 11: Executive Compensation Pay Elements
Pay Element Description Link to Strategy and Performance Base Salary Base salaries are determined based on scope of responsibility, years of experience, and individual performance To attract and compensate high-performing and experienced leaders at a competitive level of cash compensation Annual Inc
Slide 12: 2019 Annual Incentive Compensation Plan
2019 Annual Incentive Compensation Plan ICP for Corporate NEOs Award Payouts Ranged From 125% to 145% of Individual Target Award Quantitative = Calculated Payout multiplied by 80% weighting = 131.5% x 80% = 105.2% Qualitative = Attainment (0%-200%) multiplied by 20% weighting = 20%- 40% range (based
Slide 13: 2019-2021 Performance Plan Metrics
Plan 2019 – 2021 Metrics * Link to Strategy 2019-2021 Performance Plan (PSUs) 100% of PSU payout based on metrics All metrics and measurement excludes impact of M&A over the performance period Target shown is level of performance to achieve 100% payout. Payouts may range from 0 to 200%. Revenue (3-Y
Slide 14: 2020 Shareowner Proposals: Vote Against Both
2020 SHAREOWNER PROPOSALS Recommend Voting ‘AGAINST’ Both Shareowner Proposals Shareowner Vote on By-law Amendments (AGAINST vote recommended) Shareowners already have the ability to amend By-laws, independent of the Board The proposal conflicts with Delaware law The Board needs the flexibility to c
Slide 15: Political Engagement
Political engagement Comprehensive Governance and Disclosure Practices Transparent Disclosure of Political Activities HON rated a “Trendsetter” among “First Tier” companies on the CPA-Zicklin Index The Index assesses political contributions, including trade association disclosure Comprehensive publi
Slide 16: Culture as a Competitive Advantage
Culture as a Competitive Advantage High Performance Culture Grounded in Fundamental Principles 3 Foundational Principles Ingrained in everyday Honeywell culture Core principles absolutely required to work at Honeywell No compromises 9 Behaviors Enable transformation into premier software-industrial
Slide 17: Honeywell's Foundational Principles
Honeywell’s Foundational principles Integrity and Ethics Inclusion and Diversity Workplace Respect Strong tone and conduct from the top and middle management Code of Business Conduct with required training and certification Online and live training plans on a variety of integrity topics Metrics as l
Slide 18: Sustainability Governance Framework
Sustainability governance framework Sustainable Opportunity Policy Governance Through Board Oversight and Robust Management System Integrating health, safety, and environment into all aspects of its business, Honeywell: Protects its people, communities, and environment Achieves sustainable growth an
Slide 19: Commitment to a Sustainable Future
Commitment to a sustainable future Our Results Reduce GHG emissions intensity by an additional 10% from 2018 levels better safety record than industry average reduction in greenhouse gas (GHG) emissions intensity between 2004 - 2019 improvement in energy efficiency 2004 - 2019 gallons of water conse
Slide 20: Honeywell Corporate Citizenship
honeywell corporate citizenship Honeywell’s international community outreach programs have won 157 awards since 2004 Top community impact priorities: STEM education and engagement Access and opportunity Humanitarian relief Global focus, local impact: 3,000 international high school students have att
Slide 21: Appendix
Appendix 2020 Shareowner Engagement – April 2020
Slide 22: 2020 Shareowner Engagement – April 2020
2020 Shareowner Engagement – April 2020
Slide 23: Reconciliation of Organic Sales % Change
Reconciliation of Organic Sales % Change 2020 Shareowner Engagement – April 2020
Slide 24: Reconciliation of Segment Profit to Operating Income
Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margins 2020 Shareowner Engagement – April 2020 2020 Shareowner Engagement – April 2020
Slide 25: Reconciliation to Adjusted Free Cash Flow
Reconciliation of Cash Provided by Operating Activities to Adjusted Free Cash Flow and Calculation of Adjusted Free Cash Flow Conversion 2020 Shareowner Engagement – April 2020
Slide 26: Adjusted Free Cash Flow Excluding Spin-off Impact
Calculation of Adjusted Free Cash Flow Excluding Spin-off Impact 2020 Shareowner Engagement – April 2020
Slide 27: Reconciliation of EPS to Adjusted EPS
Reconciliation of eps to adjusted eps 2020 Shareowner Engagement – April 2020
Slide 28: Adjusted EPS Excluding Spin-off Impact
Reconciliation of eps to adjusted eps, and adjusted eps excluding spin-off impact 2020 Shareowner Engagement – April 2020
Honeywell International — Shareholder Meeting (April 2020) on 6ix