Honeywell International Inc. · NASDAQ:HON
Honeywell International — Investor Presentation (April 2024)
37 slides from Honeywell International's investor presentation, Apr 25, 2024
Slide 1: Slide 1
Slide 2: About Honeywell: Major Businesses
ABOUT HONEYWELL MAJOR BUSINESSES We globally manage our business operations through four reportable business segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions. The remainder of Honeywell's operations is presented in Corporate and Al
Slide 3: Aerospace Technologies and Industrial Automation
AEROSPACE TECHNOLOGIES Aerospace Technologies is a leading global supplier of products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets including: air transport, regional, business and general aviation aircr
Slide 4: Building Automation
BUILDING AUTOMATION Building Automation is a leading global provider of products, software, solutions, and technologies that enable building owners and occupants to ensure their facilities are safe, energy efficient, sustainable, and productive. Building Automation products and services include adva
Slide 5: Energy and Sustainability Solutions
ENERGY AND SUSTAINABILITY SOLUTIONS Energy and Sustainability Solutions is a leading global provider of industry leading technology, processing, and licensing capabilities combined with material science capabilities and innovative chemistry to offer focused solutions that are integral to facilitatin
Slide 6: Energy and Sustainability Solutions revenue and Competition
2023 Full-year revenue of $6,239 million 2023 Full-year revenue by business unit $2,586 million $3,653 million UOP Advanced Materials ABOUT HONEYWELL COMPETITION We are subject to competition in substantially all product and service areas. Some of our key competitors include but are not limited to:
Slide 7: ESG-oriented offerings
Methodology for identifying ESG-oriented offerings is available at investor.honeywell.com (see “ESG/ESG Information/Identification of ESG-Oriented Offerings”). • Honeywell Delivers Solutions For Pathways For Emissions Reductions . Our measurement and reporting technology integrates seamlessly with S
Slide 8: About Honeywell: Code of Business Conduct and talent
ABOUT HONEYWELL Our Code of Business Conduct establishes the baseline requirements of our integrity and compliance program and promotes an environment where everyone is treated ethically and with respect. It outlines our pledge to recognize the dignity of each individual, respect each employee, prov
Slide 9: Representation, Recognition, Retention and Honeywell Accelerator
REPRESENTATION RECOGNITION RETENTION BOARD GENDER DIVERSITY BOARD ETHNIC OR RACIAL DIVERSITY EXECUTIVE OFFICER DIVERSITY Honeywell Accelerator is our operating system for governing and managing our business. Honeywell Accelerator contains all of the best practices, tools, and digital platforms to de
Slide 10: Women and Men
4 Women W@s8Men
Slide 11: Ethnically or Racially Diverse
5 Ethnically or Racially Diverse i 7 Not Ethnically or Racially Diverse
Slide 12: Global Workforce, U.S. Workforce
GLOBAL WORKFORCE 1 U.S. WORKFORCE 1
Slide 13: 30% Women, 70% Men
30% Women mM 70% Men
Slide 14: Management's Discussion and Analysis
1 As of December 31, 2023. Excludes work forces at Sandia and KCNSC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Dollars in tables and graphs in millions, except per share amounts) The following Management’s Discussion and Analysis of Financial Condition an
Slide 15: Net sales, costs and net income 2021-2023
$40,000 + $26 802535, 466 554, 309 $30,000 ~ $22,995$22,347$2,061 $20,000 ~ $10,000 ~ $5,127 $5,214 $4,798 $5,658 ¢4 9g6 $5,542 $1,456 $1,478 $1,333 a | | a | 8 $0 — = = = Net Sales Cost of Products and Research and Selling, General and Net Income Services Sold Development Administrative Attributabl
Slide 16: Segment Profit by Segment
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Segment Profit by Segment
Slide 17: Consolidated Operating Results: Net Sales
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CONSOLIDATED OPERATING RESULTS Net Sales
Slide 18: Change in Net sales
The change in Net sales was attributable to the following: 2023 Versus 2022 2022 Versus 2021 Volume —% (4)% Price 4% 10% Foreign currency translation (1)% (3)% Acquisitions, divestitures, and other, net —% —% Total % change in Net sales 3% 3% A discussion of Net sales by reportable business segment
Slide 19: Cost of Products and Services Sold
2023 compared with 2022 Cost of products and services sold increased due to the following: • Higher direct and indirect material costs and higher labor costs of approximately $0.8 billion or 4%, • Partially offset by higher productivity of approximately $0.3 billion or 1%. Gross Margin
Slide 20: Gross Margin
mpared to 37.0% for the same period of 2022. 2023 compared with 2022 Gross margin increased by approximately $0.5 billion and gross margin percentage increased 30 basis points to 37.3% co MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Research and Development E
Slide 21: R&D and SG&A Expenses
2023 compared with 2022 Research and development expenses were flat. Selling, General and Administrative Expenses
Slide 22: SG&A and Other (Income) Expense
were flat due to the following: See Note 19 Commitments and Contingencies of Notes to Consolidated Financial Statements for additional information on NARCO Amended Buyout Agreement and HWI Net Sale Proceeds. 2023 compared with 2022 Selling, general and administrative expenses • Higher productivity o
Slide 23: Effective tax rate and Net Income
2023 compared with U.S. Statutory Rate The effective tax rate for 2023 was lower than the U.S. federal statutory rate of 21% as a result of the following: See Note 5 Income Taxes of Notes to Consolidated Financial Statements for further discussion of changes in the effective tax rate. • Tax benefits
Slide 24: Earnings per share and Review of Business Segments
2023 compared with 2022 Earnings per share of common stock–assuming dilution increased due to the following: • Higher segment profit which impacted earnings per share by $0.70 after tax, • Lower repositioning and other charges, including charges attributable to suspending and winding down our busine
Slide 25: Aerospace Technologies results
2023 2022 Change vs. 2022 2021 Change vs. Net sales $ 13,624 $ 11,827 15 % $ 11,026 7 % Cost of products and services sold 8,381 7,202 6,665 Selling, general and administrative and other expenses 1,502 1,397 1,310 Segment profit $ 3,741 $ 3,228 16 % $ 3,051 6 % Factors Contributing to Year-Over-Year
Slide 26: Industrial Automation results
2023 2022 Change vs. 2022 2021 Change vs. Net sales $ 10,756 $ 11,638 (8) % $ 12,425 (6) % Cost of products and services sold 6,621 7,486 8,361 Selling, general and administrative and other expenses 2,168 2,256 2,240 Segment profit $ 1,967 $ 1,896 4 % $ 1,824 4 % Factors Contributing to Year-Over-Ye
Slide 27: Building Automation results
2023 2022 Change vs. 2022 2021 Change vs. Net sales $ 6,031 $ 6,000 1 % $ 5,539 8 % Cost of products and services sold 3,264 3,275 3,045 Selling, general and administrative and other expenses 1,262 1,286 1,256 Segment profit $ 1,505 $ 1,439 5 % $ 1,238 16 % Factors Contributing to Year-Over-Year Cha
Slide 28: Energy and Sustainability Solutions, liquidity and critical accounting
Sales increased $243 million due to . Cash spending related to educe the impact of supply chain disruptions, any inability to source necessary materials when and as needed, offset mate due We expect to evaluate and undertake other actions to optimize our portfolio, including executing on strategic b
Slide 29: Lucian Boldea
Lucian Boldea, 52 2022 President and Chief Executive Officer, Industrial Automation since January 2024. President and Chief Executive Officer, Performance Materials and Technologies from October 2022 to December 2023. Mr. Boldea was previously employed at Eastman Chemical Company, from 1997 to 2022,
Slide 30: Jim Currier
Jim Currier , 57 2023 President and Chief Executive Officer, Aerospace Technologies since January 2024. President and Chief Executive Officer, Aerospace from August 2023 to December 2023. President, Electronic Solutions from June 2021 to August 2023. President, EMAI Aftermarket organization from Oct
Slide 31: Kevin Dehoff
Kevin Dehoff , 61 2022 President and Chief Executive Officer, Connected Enterprise since May 2022. President, Productivity Solutions and Services from November 2019 to April 2022. From 2012 to October 2019, Mr. Dehoff served as Senior Partner and Practice Leader in McKinsey & Company where he suppor
Slide 32: Billal M. Hammoud
Billal M. Hammoud , 51 President and Chief Executive Officer, Building Automation since January 2024. President and Chief Executive Officer, Honeywell Building Technologies from April 2023 to December 2023. President of Smart Energy and Thermal Solutions in Performance Materials and Technologies fro
Slide 33: Vimal Kapur
Vimal Kapur , 58 2018 (a) Chief Executive Officer since June 2023. President and Chief Operating Officer from July 2022 to May 2023. President and Chief Executive Officer, Performance Materials and Technologies from July 2021 to October 2022. President and Chief Executive Officer, Honeywell Building
Slide 34: Gregory P. Lewis
Gregory P. Lewis , 56 2018 Senior Vice President and Chief Financial Officer since August 2018. Vice President of Enterprise Information Management from October 2016 to April 2018, prior to being named Vice President, Corporate Finance in May 2018. Chief Financial Officer of Automation and Control S
Slide 35: Anne T. Madden
Anne T. Madden , 59 2017 Senior Vice President and General Counsel since October 2017. Corporate Secretary from February 2018 to September 2019. Vice President of Corporate Development and Global Head of M&A from January 2002 to October 2017.
Slide 36: Karen Mattimore
Karen Mattimore , 57 Senior Vice President and Chief Human Resources Officer since June 2020. Vice President, Human Resources and Communications, Aerospace from February 2018 to June 2020. Vice President, Human Resources Services from April 2015 to February 2018.
Slide 37: Consolidated Statement of Operations 2021-2023
Years Ended December 31, 2023 2022 2021 (Dollars in millions, except per share amounts) Product sales $ 25,773 $ 25,960 $ 25,643 Service sales 10,889 9,506 8,749 Net sales 36,662 35,466 34,392 Costs, expenses and other Cost of products sold 16,977 16,955 17,082 Cost of services sold 6,018 5,392 4,97
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