Investor Conference

New York March 7, 2012

Agenda
10:30 Introduction Automation and Control Solutions Growth Through Acquisitions Performance Materials and Technologies Dave Cote Roger Fradin Anne Madden, Mark Levy Andreas Kramvis, Ian Shankland

Q&A
12:20 Lunch Breakout Transportation Systems Honeywell Operating System Aerospace Q&A 2:15 Alex Ismail Pasquale Abruzzese, Mike Owens Tim Mahoney

Break High Growth Regions

Financial Review Q&A Concluding Remarks Dave Cote

Shane Tedjarati
Dave Anderson

3:25

End

Forward Looking Statements

The materials to be presented at the Honeywell 2012 Investor Conference contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. 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 managements 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.

Introduction
Dave Cote Chairman and CEO
Introduction 0 Honeywell Investor Conference March 7, 2012

Evolution Of Investor Expectations

Will HON Achieve The 2014 Targets?
On Track

HON Consistently Delivering Can HON Meaningfully Expand Margins?

Will The Strategies Change In The Downturn?

Will HON Blow The Cash? Will HON Resolve The Legacy Issues?

Continued Seed Planting, NPI Managed Costs, Held Margin Rates

2011 vs. 2003: Up +410 bps 2011 vs. 2007: Up +110 bps

Can HON Operate As One Company?

Disciplined M&A Approach Returned Cash To Shareholders (Dividends + Share Buybacks)

Asbestos / Environmental Steady Pension Accounting Change

2002

2003

2005

2007

2009

2011

Does Honeywell Deserve A Premium Multiple?

Introduction 1 Honeywell Investor Conference March 7, 2012

Why A Premium Multiple

Honeywell Transformation Delivering Results

- Strong 2002-2011 Financial Track Record

- Did What We Said We Would Do

- Delivering Top Of The Heap Stock Price And Shareholder Value
Consistent Execution of Strategy

- Leadership In Place, Playbook Is Working - Better Portfolio, More Efficient Operations - More Upside From Key Initiatives M&A, HOS, VPD, FT
Evolution Will Continue Best Is Yet To Come

- Great Positions: NPI/VPD Driving Greater Value

- Good Industries: Macro Trends Provide Tailwind For Growth - Achieve 2014 Targets Differentiate HON

Honeywell Continues To Outperform

Introduction 2 Honeywell Investor Conference March 7, 2012

Financial Strength Last 10 Years

+72% +13pts +101%
$4.05 $36.5 54% $3.7

+100%

41%

$21.3

$2.01

$1.8

2002

2011

2002

2011

2002

2011

2002

2011

Sales $B

Sales Outside The U.S.

EPS (Proforma)*

FCF $B **

* Proforma Excludes one-time / unusual charges; **FCF Prior to U.S. Cash Pension Contributions

Significant Growth In All Key Metrics

Introduction 3 Honeywell Investor Conference March 7, 2012

Shareholder Return
Stock Price Appreciation
2,350

Dividend Growth*
2,150

$60.10 HON +84%

$1.49 HON +98%

1,950

1,750

$32.65 S&P +26%

1,550

$0.75
1,350

S&P +78%

1,150

950

750

2/19/2002
HON

2/17/2012
S&P 500

2002
HON

2011
S&P 500

Outpacing Overall Market

Returning Greater Value To Shareholders Through Dividend Increases

* Based on (dividend yield)*(share price) as of 12/31/2002 and 12/31/2011

Great Return To Shareholders

Introduction 4 Honeywell Investor Conference March 7, 2012

A Decade Of Transformation
HON Evolution
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

What You Should Expect

HON Evolution

5 Initiatives Will Be Core To HONs DNA Addressing The Portfolio Addressing The Legacy Issues HOS, VPD, And FT Are Working Still A Lot Of Opportunity To Grow HON Performs In Good Times And Bad Well Keep Seed Planting In Downturn Ready To Capitalize On The Recovery We Will Hit Our 2014 Targets The Best Is Yet To Come!

Then

Past IS NOT Prologue

Needed To Build A Solid Foundation, New Track Record

Now

Past IS Prologue
Expect Top Tier Performance To Continue

Consistency Of Strategy Leads To Amazing Results

Introduction 5 Honeywell Investor Conference March 7, 2012

The Evolution Continues

What Stays The Same
Execution Fundamentals - Focus On Basics Go Slow To Go Fast - Make Sure The Machinery Works - Do What We Say Were Going To Do - Achieve Two Seemingly Conflicting Things - Disciplined M&A - Trick Is In The Doing Robust Future - Seed Planting, Look Beyond This Quarter - Cash Generation Focus - Conservative Bookkeeping
Strong Portfolio - Diversity Of Opportunities - Technology Differentiates - Avoid Rapidly Changing Technology
Stay Hungry, Stay Smart, Stay Disciplined, Stay Flexible
Introduction 6

Strategies Evolve
Great Positions In Good Industries

- Divestitures Less Critical

One Honeywell

- Good Now Can Always Be Better

Five Initiatives

Growth Productivity Cash People Enablers

All Have Lots More Opportunity

- A Long Runway Ahead Of Us

Investor Returns Continue
Honeywell Investor Conference March 7, 2012

Great Positions In Good Industries (GPGI)

Globalization
Great Positions - Enable HON To Grow Sales Faster Than The End
Markets We Serve

- Supported By New Product Introductions, Geographic

Growth, Technology Leadership

Safety & Security

In Good Industries - Provide A Tailwind For Growth By Leveraging Favorable

Macro Trends

- Good Balance Of Short And Long Cycle Businesses

Energy Efficiency
Disciplined Portfolio Management - Acquisitions: Targeting Smart, High Growth Adjacencies - Divestitures: Exiting Non-Core, Slow Growth,

Energy Generation

Commodity Businesses

Tailwind For Growth

Introduction 7 Honeywell Investor Conference March 7, 2012

GPGI Examples
AERO
Globalization Safety & Security Energy Efficiency Energy Gen Globalization Safety & Security Energy Efficiency Energy Gen Globalization Safety & Security Energy Efficiency Energy Gen Globalization Safety & Security Energy Efficiency Energy Gen Global OE Wins Outpacing Platform Growth Mix Shift To High Growth Regions Unmatched Safety And Efficiency Wins D&S International Opportunities Top Tier Leadership Position Across Segments New Products Driving Growth, Pricing Opportunity 50% of Growth Coming From High Growth Regions ACS Portfolio Strongly Linked to Energy Efficiency Refining / Petrochemical / Gas Investment Leading Global Resins Supplier New Products / Molecules / Refrigerants Regulations Providing Tailwind Fuel Efficiency And Emissions Legislation Win Rate Exceeds Launches In All Segments Global Turbo Penetration Multiyear High Leveraging Linkages With Other SBGs

ACS

PMT

TS

HON Well Aligned With Strong Macro Trends

Introduction 8 Honeywell Investor Conference March 7, 2012

GPGI: Portfolio Transformation

Building Growth Profile Of The Company

Introduction 9 Honeywell Investor Conference March 7, 2012

GPGI: M&A Growth Profile

Key Acquisitions
Great Position Novar (ACS) UOP (PMT) First Technology (ACS) Handheld, Metrologic, EMS (ACS) Good Industry Building Controls Growth Outlook 5-7% 8-10% 6-8% 5-7% OK Position Plastics (PMT)

Key Divestitures
OK Industry Engineering Plastics Fans, Heaters, Etc. Security Industrial Additives Fit

Energy Infrastructure
Gas Detection Customer Productivity Personal Protection Personal Protection Satellite Communications

Consumer Products (ACS)

Security Monitoring (ACS) Industrial Waxes (PMT)

Norcross (ACS)
Sperian (ACS) EMS (Aero)

6-8%
6-8% 5-7%

Nylon (PMT)
Consumable Solutions (Aero) CPG (TS)

Carpet Fibers
Aero Fasteners Consumer Auto

Adding Higher Growth Technology / Engineering Driven Core To Honeywell

Annual Sales

$10B
Since 2002

Exiting Slower Growth Commodity / Low Tech Non-Core To Honeywell

Annual Sales

$6B
Since 2002

M&A Fundamentally Improving Growth Profile

Introduction 10 Honeywell Investor Conference March 7, 2012

One Honeywell
Operate As One Company - Reinforced Continually - Glue-Building Through Functional Councils, Senior Leadership Meeting, Process
Enablers, Global Town Halls, And Awards

Robust Management Resource Review (MRR) - Three Times Annually For Top 200 - Very Robust Succession Planning - CEO / HR Leader Interview Final Candidate For Top 200 Getting The Fundamentals Right - Goal Deployment Before Year-End - Appraisals Before March 31 - Salary And Bonus Differentiation Curves

Common Tools And Goals Driving One Honeywell

Introduction 11 Honeywell Investor Conference March 7, 2012

Growth: From / To
New Products Global Expansion
(% Of HON Sales)

High Growth Regions

~$7B 500+ Launches Per Year

41% 54%

~17% CAGR

59%

~$2B
46%

Cupboards Bare
From To From U.S.

To Non-U.S.

From China & India

To Other HGR

Seed Planting

Expanding Internationally

Exposure To Fast Growing Economies

Pace Continues
Introduction 12 Honeywell Investor Conference March 7, 2012

Growth: Top Programs

2014 Incremental Sales
Globalization & Productivity

Growth Program
Refining Technologies Heavy Oil / Sour Gas New Aero Platform Wins Wireless Solutions Air Traffic Management Leader Flight Safety Products Personal Protection Equipment / Gas Detection Homes & Buildings Safety Products Low Global Warming Potential Products Smart Grid / Demand Response Energy Management Services Next-Generation Turbos Natural Gas Storage / Distribution / Treatment Renewable Green Energy Shale Gas Lithium-Ion Batteries

$2B+

Safety & Security

$2B+

Energy Efficiency

$1B+

Energy Generation

$1B+

Investments Aligned With Favorable Macro Trends

Introduction 13 Honeywell Investor Conference March 7, 2012

Growth: Research And Development

RD&E Investment
$1.8B

EM
DM ~12K

Census
~22K

$1.1B

2003

2011

2003

2011

Spend Up ~60%

Resources Up >75%, Deployed Smartly

Patents
1,045 ~20K 464

R&D Effectiveness
Robust Velocity Product Development
~33K

VPD An Integrated, Cross HON Strategy Platform Strategy In Every SBG Software Reuse, Simulation Tools CMMI: 50%+ Engineering / Software Focused

Higher Value, Reduced Cycle Time

2003
2003

2011

2009

2003

2003

2011

2010

New Patents

Patent Base

- Differentiated Offerings That Are Valued - Right Products On Time, Every Time

Effective Use Of R&D To Drive Margin Expansion

Introduction 14 Honeywell Investor Conference March 7, 2012

Growth: Following Our Own Message

Safety
Standardized Injury Rate (TCIR)

Energy Intensity
(EE / Sales $)
~35% More Efficient

Greenhouse Gases
(Green House Gas Units)
~55% Less Emission

HON 70% Lower!

Industry Average

HON

2004

2011

2004

2011

Ahead Of TCIR Target Using Driving EE Through HON Tech HON Products, Consistent Stds Energy Savings From 10-11 Incorporated Into HOS Projects ~$20M (Annualized)

Set Aggressive Public Targets

Met Them Ahead Of Plan

Most Project Paybacks ~1 Yr

Helping Us Grow

Expanding Safety Services

Model

HBS / Utility Partnerships

Piloting Automated DR

HON Technologies Enabling Further Improvements

Sustainability A Cornerstone Of HON Culture

Introduction 15 Honeywell Investor Conference March 7, 2012

Productivity: More Efficient Footprint

Rooftop Consolidation
Sales $25.6B ~35% Improvement $20.7 ~600 Net M&A ~(550) Consolidations $499 $607 $518 $36.5B

Regional Footprint
$28.0

Developed
47M 48M

Emerging

$358

~1,250

~1,300 7M

14M

Then

Acquisitions Consolidations Rooftops Sales ($M) / Rooftop

Now

Then Then DM

Now Now DM

(skip)

Then Then EM

Now Now EM

Footprint (M SqFt)

Sales $ / SqFt

Aggressively Integrating Acquisition Footprint

Note: As Reported

Aligning Footprint For Global Growth

Supporting Profitable Global Expansion

Introduction 16 Honeywell Investor Conference March 7, 2012

Productivity: Census Management

Census
Total
+25%

OEF
Emerging
+159%

Developed
(4%)

Then

Now

Headcount

Organizational Efficiency

135K 108K 88K 84K 51K 20K 2003 2012E 2003 2012E
2003 2012E

Satisfy Competing Objectives

- Maximize Labor Cost Efficiency - Maintain High Quality Talent

Common Tools And Processes

Global HR Reporting Tool Fixed / Variable OEF OEF By Function OEF Walks

2012E vs. 2003:

Sales ~75%

EPS ~190%*

Optimizing Total Employee Cost

* Proforma Excludes Mark-to-Market pension adjustments

More Efficient, More Effective Organization

Introduction 17 Honeywell Investor Conference March 7, 2012

Productivity: Material Cost

Strategies
Internal Focus: Manage Cost And Consumption - Value Engineering Devoted To Driving
Projects That Reduce Cost
$32.4B Productivity
Direct Material 40.6%

Impact
$36.5B
Direct Material 41.4%

- Expand Sourcing In Emerging Markets - Mitigate Commodity Exposure Through

Alternative Materials, Pass Through Pricing, Hedging
Indirect 13.4%

Inflation

Indirect 13.1%

External Focus: Manage Suppliers - Outsource Non-Strategic Spend - Focus On Supplier Quality And Development - Partnering To Improve Supplier Performance
Relentless Focus On Quality, Cost And Consumption

OEF 28.7%

OEF 27.9% Depreciation +80 bps OI 14.7%

Depreciation OI 13.9%

2010

2011

Improving Margins

Effective Cost Management

Introduction 18 Honeywell Investor Conference March 7, 2012

Cash: Generation
Free Cash Flow
($B)
+100% FCF Conversion

Working Capital Turns

HOS, Cycle Time Drives Further Improvement

$3.7 4.6 $2.2

6.9

2003

2011

2014

2003

2011

2014

FCF Conversion Averaged ~130% Since 2003 Operating Disciplines = High Quality Earnings
FCF and FCF Conversion shown prior to U.S. cash pension contributions

~$3B Cash From WC Turns Improvement Cycle Time Improvement Opportunity

Continued Strong Cash Generation

Introduction 19 Honeywell Investor Conference March 7, 2012

Cash: Deployment
From
$29B
Dividends

To
~$14 - 16B
Dividends

24%
Share Buy Back

~25% Significant Cash Returned To Shareholders

Share Buy Back, Net M&A, Other

34% Opportunistic, No Must Haves/Sells

~50%

Net M&A

20%
CAPEX CAPEX

22%
2003-2011

Reinvestment Ratio >1

~25%
2012-2014

Note: Deployment percentages based on cash flow from operations net of other cash flow activities, primarily change in debt

Cash Providing Flexibility To Generate Excess Returns

Introduction 20 Honeywell Investor Conference March 7, 2012

People: Performance Culture

Incentive Program
Then

Measurement Criteria
Improving Alignment With Shareholders

Now
Income + Cash

Bonus Plan Short Term

Annual
Covers 700 People 20% Of Top Mgmt Comp

Income

Income + Cash + Working Capital

Medium Term

Growth Plan
Biennial
Senior Leadership 20% Of Top Mgmt Comp

Organic Sales + Organic Sales New + ROI For 2012 ROI + Margin Expansion Options Focused More Weight For Top

Long Term

Equity
Weighting And Options Focus Increases With Level 40% Of Top Mgmt Comp

Margin Rate Growth Emphasized In Growth Plan

Introduction 21 Honeywell Investor Conference March 7, 2012

People: Growth Plan

Evolution
Growth Plan Formula Evolving New
For 2012

2012 2013 Cycle Targets

200% 2011 Actual Segment Margin: 14.7% 2012 2013 Cumulative 100% Margin Expansion: ~130 bps 2014 Target Segment Margin: 16-18% 50% Payout

Half
Organic Sales Growth

1/3rd
Margin Expansion

1/3rd
Organic Sales Growth

Half
ROI

1/3rd
ROI

From

To

Linked To Shareholder Interest

Note: Excludes M&A

Aligned To 2014 Targets

Growth Plan Targets Aligned To Shareholder Returns

Introduction 22 Honeywell Investor Conference March 7, 2012

Enablers: Common Tools And Processes

Enablers
Building On Prior Expertise

Benefits
Now Honeywell Operating System

Then

Honeywell Operating System (HOS) - Driving Sustainable Improvements In

Safety, Quality, Delivery, Cost, And Inventory Management Providing A Rigor That Improves Service To The Customer And Value To Honeywell

Lean

FOUNDATION

Six Sigma

Functional Transformation

Functional Transformation (FT) - Creating One Honeywell, Common Processes, Lowering Overhead FT Success Enabled By ERP

Digital Works

Velocity Product Development

Velocity Product Development (VPD) - Business Led Cross-Functional Approach Driving Value For The Customer, Margin Expansion For Honeywell

Dramatic Results Already, Still More Opportunity

Introduction 23 Honeywell Investor Conference March 7, 2012

Honeywell Operating System

HOS Deployment
315.0 305.0 295.0 285.0 275.0 265.0 255.0 245.0 235.0

% Of Manufacturing Cost Base Certified

307

307 100%

Continuous Improvement Beyond The 4 Walls Of The Factory

Maturity Yields Integrated Business Model Performance Differentiation Accelerating Bronze Deployment Company 100% By 2014

275 70% 31%

2010 2012 2014

HOS Framework Evolves Over Time

Four Walls Of The Factory Cross Functional Integration Speed To Market Total Business System

Full Scale Deployment

Bronze

Silver
New Products, VPD 25% Productivity Increase 80% Quality Improvement

Lean, 6 Culture SIOP / Procurement Building Deployment Skills

Gold
Setting The Bar High Sustaining Performance

Accelerated Deployment, Continuous Improvement

Introduction 24 Honeywell Investor Conference March 7, 2012

FT And ERP
FT
($B) 9.5%
1.600 1.400 1.200 1.000

ERP
($B) 96% 80%
80% 120%

100%

6.3% 5.5%

67% $1.5 $1.0

60%

0.800 0.600

40%

0.400 0.200 -

$0.5

20%

0%

2004

2011

2014

2010

2012

2014

FT Cost

% of Sales

Net ERP Benefit (Cum)

% of Rev on SAP

Finance, HR, IT, And Sourcing

FT % Of Sales Down (320) bps Since 2004

~70% Of Honeywell Sales On SAP

Early Benefits, Bigger Benefits To Come

Common Processes Continue To Yield Benefits

Introduction 25 Honeywell Investor Conference March 7, 2012

Long-Term Outlook At The Halfway Point

($B)

Sales
09 -12: 8 9% CAGR
$41.0 - 45.0 $37.8 - 38.9 $36.5 $32.4 13.3%

Segment Margin
Long Term Goal: 300 - 500 bps
09 -12: 170 200 bps
15.0 -15.3% 16.0 -18.0%

Long Term Goal: 6 - 8% CAGR

13.9%

14.7%

$30.0

2009

2010

2011

2012

2013

2014

2009

2010

2011

2012

2013

2014

On Track To Achieve Long-Term Targets

Introduction 26 Honeywell Investor Conference March 7, 2012

The Best Is Yet To Come

Building Off Of An Increasingly Robust Foundation - Accelerated Outperformance From HON During Last Two Years Strategies Will Continue To Evolve To Meet Business Needs - Expectation Of Top Tier Performance Is Constant Great Positions In Good Industries - Solid Portfolio Well Aligned To Leverage Key Macro Trends More Upside From Initiatives - HOS, Acquisition Integrations, Repositioning Benefits On Track To Achieve 2014 Targets, Robust Future Beyond - Seed Planting For Future Growth, Driving New Products And Technologies

Last 10 Years Great, Next 10 Will Be Even Better

Introduction 27 Honeywell Investor Conference March 7, 2012

Todays Presenters
Automation and Control Solutions
Roger Fradin
President and CEO

Growth Through Acquisitions

Anne Madden
VP Global Mergers and Acquisitions

Mark Levy
President Life Safety

Performance Materials and Technologies

Andreas Kramvis
President and CEO

R&D Effectiveness
Ian Shankland

Transportation Systems
Alex Ismail
President and CEO

VP and CTO Performance Materials and Technologies

Aerospace
Tim Mahoney
President and CEO

Honeywell Operating System

Pasquale Abruzzese
VP Transportation Systems, Integrated Supply Chain

Mike Owens

High Growth Regions

Shane Tedjarati
President and CEO

VP Aerospace, Integrated Supply Chain

Financial Overview
Dave Anderson
Senior VP and CFO

Moderator, Q&A
Elena Doom
VP Investor Relations

Introduction 28

Honeywell Investor Conference March 7, 2012

Automation & Control Solutions

Roger Fradin
President and CEO
Automation and Control Solutions 0 Honeywell Investor Conference March 7, 2012

Honeywell Automation And Control Solutions

Financials
($B)
$12.6 12.6% 12.9% 13.4% 13.8 14.0%
Sales Segment Margin %

Disciplined Execution
$16.0 $16.5

Diversified, Balanced Portfolio

$15.5 $13.7

Aligned to Key Global Macro Trends

Growth Outpacing Global GDP Accelerating Margin Rate Expansion Strong Momentum, Winning in the Market

2009

2010

2011

2012E

Business Units
Process Solutions 20% ECC 18% S&C 4% Building Solutions 18%

Sector Mix
Infra 20% Comm 25%

Geographic Mix

ROW 21% Americas 48%

Scanning & Mobility Security 3% 16%

Life Safety 21%

Res 16% Ind 39%

Europe 31%

Note: 2011 Sales

Strength And Breadth Of Portfolio Unmatched

Honeywell Investor Conference March 7, 2012

Automation and Control Solutions 1

ACS Track Record

Sales
($B)

Segment Profit Segment Profit

Segment Margin

$15.5

$2.1

+210 bps
11.3%

13.4%

~2X Growth
$7.5

~3X Growth

$0.8

2003

2011

2003

2011

2003

2011

Strong Sales Growth And Margin Expansion

Automation and Control Solutions 2 Honeywell Investor Conference March 7, 2012

ACS Portfolio Dynamics

ESS ~50% HPS ~20% BSD ~30%

Energy, Safety & Security

Environmental and Combustion Controls, Life Safety, Security, Scanning and Mobility, Sensing and Control

Honeywell Process Solutions

Building Solutions & Distribution

Building Solutions, ADI (Security and Fire Distribution)

Growing Faster Than Served Markets, Continued Margin Expansion Runway

10% Sales CAGR (06-11): NPI, New 8% Sales CAGR (06-11): Adv. 3% Sales CAGR (06-11): DD Wins, EM Expansion and M&A Solutions and Projects DD Growth Energy Sales CAGR Last 5 Yrs High-teens Margins; +100 bps/yr Last 3 Years Low-teens Margins with Room for Expansion Mid Single-digit Margins Overall; Service Margins Mid-teens

Balanced Portfolio Mix

Automation and Control Solutions 3 Honeywell Investor Conference March 7, 2012

ACS End Market Environment

End Market % Sales
38%

Outlook

2012 Assumptions
Backlog Conversion Key Growth Driver Continued Strength in EM 1H Softness Due to Difficult Comps, China Credit Tightening and EMEA Uncertainty Modest Growth in U.S.; EMEA Flat

Industrial

17%

NPI and Energy Efficiency Drive Growth Above GDP Improving 1H to 2H 12 HVAC Headwind 1H Due to Slow Heating Demand Improving Conditions in U.S. Offset By Economic Uncertainty in Europe Energy Efficiency Retrofit Continues to Drive Developed Region Growth Some Moderation in Emerging Regions Backlog Conversion Drives Growth (Institutional / Infrastructure)

Residential

26%

Commercial

19%

Other

U.S. and EM Strength Partially Offset By European Uncertainty

More Challenging Global Macro Environment

Honeywell Investor Conference March 7, 2012

Automation and Control Solutions 4

ACS Core Strategies

Great Positions in Good Industries Commercial Excellence / Growth Mindset Innovation Through Technology and NPI Globalization and High Growth Region Expansion

Continue to Grow Through Strategic Acquisitions

Leverage Core Process Initiatives

Consistent Strategy And Execution

Automation and Control Solutions 5 Honeywell Investor Conference March 7, 2012

Great Positions In Good Industries

Segment
Home Comfort Controls Building Controls Residential Combustion Sensing Security Fire Systems Personal Protective Equipment

Position
1 1 1 3 1 1 1

Market Drivers
Energy Savings, Productivity Energy Efficiency, Emissions Legislation, Safety Energy Savings, Comfort, IAQ Safety, Construction, Healthcare Innovations Security, Productivity, New Technology Adoption Safety, Codes and Regulations, Comm. Construction Safety, Codes and Regulations, Cost of Incidents Safety, Codes and Regulations, Industrial Production Productivity, Security, New Technology Evolution Safety, Security and Energy Efficiency, Installed Base Energy Efficiency, Sustainability, IT Convergence

Gas Detection
AIDC Scanning and Mobility

1
2

Process Solutions Building Solutions

2 2

Growing Leadership Positions

Automation and Control Solutions 6 Honeywell Investor Conference March 7, 2012

ACS Aligned To Global Macro Trends

Safety Security
+
Z P

1
T

A1

A2 1 2 3 4

5
Live

Wireless
Energy Efficiency Productivity

Automation and Control Solutions 7

Honeywell Investor Conference March 7, 2012

Building Our Great Positions: 2011 Progress

Safety
Highlights
Acquired Kings Safetywear, Fire Sentry Successful Sperian Integration

Innovations
80+ New Safety Products Smart PPE: Enabled Safety Products, Safety Community Build-Out Key Platforms: TruStability Pressure Sensors and Limitless Wireless Solutions

HLS Cross-Selling on Track to $200M Goal

Key Safety Sensor Wins: Goodrich Actuation Systems, Boeing, ResMed

Security
Highlights
$300M in Critical Infrastructure Orders Key Wins: Casino Niagara, Houston Airport System, Heathrow Terminal 2, Belaya Dacha Outlet Village Moscow

Innovations
Total Connect 2.0 LynxTouch

MAXPRO NVR-XE
Faster Emergency Response School Systems
Honeywell Investor Conference March 7, 2012

Automation and Control Solutions 8

Building Our Great Positions: 2011 Progress

Energy Efficiency
Highlights
$500M in New Energy Savings Performance Contracts (ESPCs) Smart Grid Wins: China, Europe, Hawaii Caspian Pipeline Consortium Wal-Mart China

Innovations
Largest Awardee of DOE Grants Attune - Advisory Services Launch Comfort Point Open 2nd Generation

Productivity
Highlights
$1B in New Oil & Gas Orders Shell Pearl GTL Plant: $300M City of L.A. Wastewater: $88M EMS Technologies Acquisition Starbucks First UPS DIAD V Units Shipped
Automation and Control Solutions 9 Honeywell Investor Conference March 7, 2012

Innovations
Universal I/O in Safety Systems, PlantCruise Dolphin 99EX, Scanphone, Xenon Color, Youjie

Commercial Excellence / Growth Mindset

From
Customer An Afterthought
Few New Products: 120 in 2003 Fiefdoms Global Presence Retrenched Living for the Quarter Minimal People Investment
Census: Sales-5,100; Marketing-800

To
Customer Focused/ Winning with Customers Lots of New Products: 540 in 2011 Cross-ACS and HON Collaboration Accelerated Global Expansion Short and Long-term Focused Invested in People Talent, Training, Compensation
Census: Sales-9,000; Marketing-1,650

Marketing vs. Sales Weak Compensation Linkage Negative Pricing

Tight Marketing-to-Sales Linkage Increased Variable Pay, Cost Leverage Analytic Pricing Tools Positive Price

Driving A High Return On Commercial Investment

Automation and Control Solutions 10 Honeywell Investor Conference March 7, 2012

Innovation: Lifeblood For ACS Growth

New Products - #1 Driver Of Honeywell Growth And Profitability
18000 15000

Sales New Products R&D Headcount

700 600

New Products

Sales / HC

500 12000 9000 6000 3000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E

Power of VPD

400 300 200 100

R&D Investment up 90% Resources up 125%

Cycle Times Reduced 40% NPI up ~3X

Accelerating Scale And Speed Of New Product Introductions

Automation and Control Solutions 11 Honeywell Investor Conference March 7, 2012

Smart PPE: Worker SafetyIn The Digital Age

Integrating More Technology Into And With Traditional PPE Equipment
Identification, RFID, Bar Codes

Digitally Enabled Equipment

+
Digitally Enabled Worker

Sensing & Actuation Chem, Mech, Electrical Identification Biometrics, RFID Sensing Vital Signs, Hazards Communication Wi-Fi, Cell, BlueTooth Location, Zoning GPS, RSSI Access Control Biometrics, RFID Video Compliance Image Recognition Emergency Communication

+
Digitally Enabled Site

Customer Value
End-to-end Solution That will Improve Compliance and Safety Outcomes Minimizes Complexity and Costs Associated with Managing Compliance

Business Value
Significant PPE Product Differentiation; Unique HON Capability Broader Solution Pull Through, with Recurring SaaS Revenue Streams

Extending Product Leadership To Solutions Model; Driving New Sales Opportunities

Honeywell Investor Conference March 7, 2012

Automation and Control Solutions 12

The Connected Home: Honeywell Total Connect

Offers Homeowners and Light Commercial Building Owners Ability To: - Remotely Access and Control Security, HVAC, Lighting, Video
Look-In and Locks From Tablet, Smartphone and Web Portal

- Ensure Property is Safe and Secure and Occupants are

Comfortable

- Engage a Contractor for Repair, Replacement Upgrades - Receive Diagnostic Information on System Performance

User Interface Devices

Segment Opportunity - Current Installed Base: 150M Homes, 10M Buildings - Security, HVAC and CE Contractors - Brick & Mortar and Online Retailers Customer Value
Full Suite of Mobility Offerings

Comfort Management, Security and Alerts & Diagnostics

Business Value
Expands Reach of Existing Channels and Offerings Extends Applications for Recurring Revenue

Proactive Decision-Making for Energy, Repair, Safety and Security Decision

Leveraging The Prevalence Of Broadband And Mobile Devices

Automation and Control Solutions 13

Honeywell Investor Conference March 7, 2012

Mobility: From No Presence To Leading Position

Product Portfolio
2003
No AIDC Presence

2008
HON VPD

2012

Customer Value
Dolphin 99EX Secured Industry Standard Status Among T&L Customers Mobility Performance, Durability & Reliability Plus Service Made Simple Offers Piece of Mind Remote Mastermind for Mobility Connects Customers with Their Field Assets Broadest Portfolio in $15B AIDC Industry

Business Value
Velocity Product Development Resulted in Rapid Mobility NPI Secured Key Mobility Accounts: UPS, Starbucks, Exapaq, Grupo Modelo Mobility Connects Customer Base to Enhance Both Support and Products Mobility Drives Market Growth

Great Position In Growing B2B Mobility Industry

Automation and Control Solutions 14 Honeywell Investor Conference March 7, 2012

PlantCruise: New Mid-Market Control System

Experion : Largest Capital Projects in The World

Mid Markets in Emerging Countries: $1B Total Market

PlantCruise
Shah Gas Shell GTL LA Wastewater ExxonMobil PNG

Re-Engineered by China and India w/ China Supply Monetizing Experion IP: 9 Month Intro - VPD China Launch: $6M in Wins Before Intro! Next: India, Southeast Asia, Latin America

Customer Value
Superior Control System Offering Providing Better Safety, Reliability, Efficiency at Price Point Competitive with Local Chinese Suppliers Easier to Use and Faster to Configure

Business Value
Growth in Underserved Chemicals, Power and Metals Markets in Emerging Regions Improved Cost Position to Drive Better Growth and Increased Margins

$100M HPS Opportunity In Underserved Market

Automation and Control Solutions 15 Honeywell Investor Conference March 7, 2012

Globalization And High Growth Region Expansion

Globalization
($B)

High Growth Regions

Matching Customer Footprint
$9.4

U.S. ROW $6.1

Strengthened Leadership Teams Scaling Local Market NPI

$3.9

$3.6

60% ~13% CAGR

40% ~ 6% CAGR

53%

47%

2006

2010

2016

2003

2011

Projected 2016 Sales: China: ~$2B India: ~$1B Mid. East: ~$1B

Empowering Local Teams To Drive Growth

Automation and Control Solutions 16 Honeywell Investor Conference March 7, 2012

Growth Driver: Strategic Acquisitions

Enhanced Core
Acquisitions
Building Controls Energy/ Smart Grid
Position Before Position Today
EV/EBITDA EV/EBITDA Headline Expectation

#1 New Market

#1 #1

~12x ~15x

~5x ~2x

New Adjacencies

Personal Protection Gas Detection Industrial Combustion AIDC

None None None

#1 #1 #2

~11x ~12x ~7x

~6x ~4x ~5x

None

#2

~12x

~5x

Building Great Positions In $50B High Growth Industries

Automation and Control Solutions 17 Honeywell Investor Conference March 7, 2012

Applying Honeywell Process Discipline To M&A

The Honeywell M&A Playbook
Growth
Sales Excellence Marketing and Pricing Excellence Advanced R&D and HTS Labs NPI/VPD Electronics and Wireless Excellence One Honeywell Globalization Govt Relations Acquisitions Process

Productivity
HON Operating System Value Engineering Functional Transformation Direct Materials Indirect Expenses Factory Transitions Six Sigma

Cash
Receivables, Payables and Cash Processes SIOP

People
Respectfully Combine Cultures Best of Both Talent

Cycle Time Reductions Employer of Choice (Training, Career Path, Comp.) HON Performance and Development Health, Safety, Environmental

Process Drives Our Successful Track Record

Automation and Control Solutions 18 Honeywell Investor Conference March 7, 2012

Making Our Business Better

Honeywell Operating System
133 Sites in Full Scale Deployment
- 94% of Conversion Costs
$165M $150M $100M

SAP / FT
$200M

7 Silver and 66 Bronze Sites

- 50% of Factory Footprint

All Global Sites Bronze by 2014; 50% Silver by 2016

Typical HOS Results From Launch To Silver

363% Improvement
1000 800 600 400 200 0 Prior to HOS Silver

2010

2012

2014

2016

Benefits
11 Pt Improvement
98 96 94 92 90 88 86 Prior Silver to HOS 60 50 40 30 20 10 0

29% Reduction

31% Improvement
100 80 60 40 20 0

Backbone for All Business Processes 58% Complete at End 2012

Prior to HOS

Silver

Prior Silver to HOS HSE (SAT Audit)

Quality (PPM)

Delivery (OTTR)

Inventory (DOS)

Lookback Process for Continued Enhancements at Live Sites

Process Initiatives Enabling Margin Expansion

Automation and Control Solutions 19 Honeywell Investor Conference March 7, 2012

Margin Expansion
Segment Margin
+75100 bps
+75100 bps +5075 bps +5075 bps

15-16%

12.9%

Process Initiatives (HOS, FT and VPD)

2010 Vol Leverage Op Excellence FT & ERP Com'l Excellence 2014

Volume Leverage OEF Indirects

Operational Excellence HOS NPI and VPD

FT and ERP Common Process Common System

Commercial Excellence Pricing Sales and Marketing Excellence

Fixed Cost Discipline

COPQ

Strong Growth And Margin Expansion Outlook

Automation and Control Solutions 20 Honeywell Investor Conference March 7, 2012

Long-Term Outlook Update

Sales
Long Term Target: 6 - 9% CAGR
2012 Up 3 - 6%
($B)
$17.4 - 19.4 15.0 - 16.0% $15.5 $13.7

Segment Margin
Long Term Goal: 15.0 - 16.0%
2012 Expanding ~50 bps

$16.0 - 16.5
12.9%

13.4%

13.8-14.0%

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

On Track To Deliver Five-Year Plan

Automation and Control Solutions 21 Honeywell Investor Conference March 7, 2012

ACS The Best Is Yet To Come

Diversified, Balanced Portfolio Aligned to Key Global Macro Trends Growth Outpacing Global GDP

Accelerating Margin Rate Expansion

Strong Momentum, Winning in the Market

Significant Growth And Margin Runway

Automation and Control Solutions 22 Honeywell Investor Conference March 7, 2012

Growth Through Acquisitions

Anne Madden
Vice President Global M&A
Growth Through Acquisitions 0

Mark Levy
President Life Safety
Honeywell Investor Conference March 7, 2012

M&A Process Transformation

M&A Critical Element of Long Term Growth Story
- When Done Right, Value Enhancing

Historically Mixed Track Record

- Discipline Lost in the Zeal for the Deal

Analyzed 10 Years of Acquisitions (1992-2002)

- Scorecard: Poor Acquisition Performance

Failure Modes Beyond Strategic Miss

- Poor Ownership/Integration, Overestimated Sales Synergies

Designed New Core Process

- Identification Due Diligence Valuation Integration

Complete M&A Process Redesign

Growth Through Acquisitions 1 Honeywell Investor Conference March 7, 2012

Disciplined Acquisitions Process

Identification Due Diligence Valuation Integration
Then: Pre-Dave Cote
Hey, Thats for Sale Deal is the Strategy Zeal for the Deal Ignore Findings Sales Synergies Incl. Realization Rate Low Joes Retiring Delayed Start

Now: Last 10 Years

Strategy Comes First Constant Screening Functional Expertise Relentless Discipline Cost Synergies Only Rigorously Scoped Price Part of Strategy Best People Full-Time Mgmt Development Planning Starts at DD

Robust Pipeline

Kill Bad Deals

Never Overpay

Great Track Record

Novar, Zellweger, First Tech, Metrologic, Norcross, Sperian, And UOP Smartly Adding To Great Positions In Good Industries
Growth Through Acquisitions 2 Honeywell Investor Conference March 7, 2012

HON Portfolio Reshaping

Aero
Condition Based Maintenance Satellite Communications Performance-based Logistics

ACS
Gas Detection AIDC PPE Building Controls Oil and Gas Monitoring Industrial Combustion Energy / Smart Grid

PMT
UOP Process Technology and Catalysts Membrane Technology Strategic Upstream Supply

TS
Explore Potential High Growth, High Margin, Technology Adjacencies

Added: Higher Growth, Technology-Oriented Businesses

Exited: Slower Growth, Low Tech, Non-Core Businesses

Consumable Solutions / Aero Fasteners Consumer Products (Fans, Heaters, Etc.) Automotive Sensors Plastics Industrial Waxes Nylon Dozens of Others CPG: Automotive Consumer Products Group

Disciplined And Smart: ~70 Acquisitions, ~50 Divestitures Great Track Record
Growth Through Acquisitions 3 Honeywell Investor Conference March 7, 2012

Integration Best Practices

Full-Time Integration Leader and Cross-Functional Team Measuring Performance Against Detailed Written Plan Best of the Best Talent Selection Realign Personal Goals and Incentives Best Practices Transfer From Target Visibility of Senior Management Develop Annual Operating Plan Carefully Vetted IT Integration Institute HON Compliance Processes Continuous Communications CEO Reviews

Effective Integration Key To Acquisition Success

Growth Through Acquisitions 4 Honeywell Investor Conference March 7, 2012

Life Safety A Decade Of Transformation

Growth By Business Segment
~$4B

Gas PPE Fire

~$0.4B

2001

Legacy

Novar

Analytics

FT

Norcross

Sperian

Kings

2012

Geographic Growth
Americas Americas EMEA AP AP 2001 2012 EMEA

Driven By Superior Global Footprint, Sales Synergies

Growth Through Acquisitions 5 Honeywell Investor Conference March 7, 2012

Attractive Life Safety Space

Large, Growing and Fragmented Space
- Attractive Market Opportunity $38B by 2016 - Growth in All Global Regions

High Profitability Potential

- Op Margin 15% - 25%

Highly Regulated by Codes And Standards

- OSHA, ANSI, NFPA, NIOSH, CSA, etc.

Great Synergy: Sales and Distribution

- Cross Selling in Vertical End Markets

Ability to Drive Innovation

- Extending Portfolio From Products to Software and Services

Expanded Addressable Market From $3B To $38B

Growth Through Acquisitions 6 Honeywell Investor Conference March 7, 2012

Going After New Spaces

Diligence
Deep Understanding of Core Fire Customers Evaluated Larger Adjacent Spaces with Higher Growth Potential Sought Complementary Portfolio Offerings

Gas
Legacy Fire Business Maturity Gas Detection a Key Customer Priority Complemented Legacy Product Portfolio No Clear Gas Leader Technology Differentiation Gas Sensors an Art Identified Leading Gas Providers Zellweger: Industrial Gas Detection, Global Footprint, New Channels and Verticals Oil and Gas, Semiconductors First Technology: Portable Gas Detection, Complementary Fit with Zellweger, Lens to Protective Safety Gear Scale in Gas Sensors HON Leader

PPE
Gas Channels Selling Protective Safety Gear Highly Fragmented Space No One Player >5% Market Share Identified 2 Potential Candidates Norcross, Sperian Norcross: Fire Service, Utility, Industrial Safety and Agriculture Sperian: Respiratory, Hearing, Clothing, Fall Protection Combination Created First Head-to-Toe Product Portfolio Adding Key Bolt-ons: Kings Safety Footwear Scale in PPE HON Leader Cross-Selling, Vertical and Global Expansion Opportunities

Identified Potential Disruptive Technologies

Focused on Ability to Differentiate with Innovation Assessed 15-25% Operating Margin Potential Ensured Cost, Sales and Global Distribution Synergies

Extending Into Well-Known, Attractive Adjacencies

Growth Through Acquisitions 7 Honeywell Investor Conference March 7, 2012

World Class Integration Expertise

Integration Model Powered By Honeywell Toolkit
STRAP AOP MRR NPI ISC Dashboard HOS

Model Execution
Align Goals with Strategic Plan Set Expectations, One HON Culture Deploy Full-time Integration Team

Achievements
Highly Profitable Global Leader Growth > Industry All Businesses World-Class Expert Organizations

Align Processes, Systems, Branding

Focus on Innovation, Customers and Globalization Retain Best Practices From Both Sides Assess Best of Both Talent

Integrations on Time / on Budget

Operational Performance Enhanced By HOS Silver/Bronze Certifications Improved Supply Chain Metrics: DOS, OTTR, Cycle Time

Operational Report Outs - CEO 360 Day Reviews

Cost Synergies Achieved Early

Satisfied Customers, Increased Interest in End-to-End Offerings Technology Innovation Creating New Global Customer Opportunities

Proven, Repeatable Model

Growth Through Acquisitions 8 Honeywell Investor Conference March 7, 2012

Gas Detection Performance

+30%

Global Leader 2X Industry Growth Highly Profitable, Cash Follows Sustainable Factory Productivity Robust Technology Platform
+175%

Sales 2005*
*Management Estimate

Segment Profit 2011

Outstanding Financial Performance

Honeywell Investor Conference March 7, 2012

Growth Through Acquisitions 9

HLS Transformation
Results
Unprecedented Growth: 10X Since 2000

Expanded Margins Faster Than Sales

Far Exceeding Acquisition Model Synergy Assumptions Increased R&D Investment Across All Acquired Businesses Integration Best Practices Driving Cost Synergies Best in Class Organizational Model Unified Powerful Brands Under Honeywell Umbrella Real Traction on Sales Synergies Broad Cross-SBG Selling Program On Track to Overdrive $200M+

Winning With Global Customers, Extending Portfolio

Growth Through Acquisitions 10 Honeywell Investor Conference March 7, 2012

Disciplined Acquisition Framework

Attractive Sub-Industries
Aligns to Favorable Macro Trends Build Upon Leading Franchises Achieve 6-8% Cost Synergies Accretive All-In Year 2 Disciplined Acquisition Process Yields Above Average Growth, Margin Expansion and Double-Digit ROI

ROI > 10% 5th Year

What Weve DemonstratedWhat You Should Expect

Growth Through Acquisitions 11 Honeywell Investor Conference March 7, 2012

Summary
Consistent Deployment of Process Disciplines Successful Execution Driven by Business Strategy Integrating Lessons Learned Across Portfolio World Class Integration Yielding Impressive Results While Nothing Individually Transformative

When Taken Together, Weve Transformed Over Time

Growth Through Acquisitions 12 Honeywell Investor Conference March 7, 2012

Performance Materials and Technologies

Andreas Kramvis President and CEO
Performance Materials and Technologies 0 Honeywell Investor Conference March 7, 2012

Honeywell Performance Materials And Technologies

Financials
($B)
Sales Segment Margin %

Recent Highlights
~$6.1 - $6.2

$5.7 $4.1 14.6% $4.7 15.8% 18.4%

Delivered Record Performance Profit, Segment Margin, Cash Established New Game-Changing Technologies Improved Plants With Many Running at Record Levels

~18%

2009

2010

2011

2012E

Expanded Global Presence and Sales

Business Units
UOP North America

Geographic Mix
Latin America

EMEA Advanced Materials Asia Pacific

Note: 2011 Sales

Ahead Of Long-Term Targets

Honeywell Investor Conference March 7, 2012

Performance Materials and Technologies 1

A Transformed Business
Now
Record Profitability Strong Mix of Growth Businesses with Strong Position in a Range of Good Industries Differentiated Product Line Robust NPI Pipeline with Game-Changing Technologies Strong Management and Processes Global Player, with 58% of Sales Outside U.S.

18.4%

Then
Barely Profitable Bad Mix of Businesses Undifferentiated Products, Competing on Price Limited IP Protection and Technology Focus Underperforming Management Over 76% of Sales in U.S.
5.3% 4.3% 2.8%

Segment Margin
13.5% 12.3% 13.7%

15.8% 14.6%

7.9%

1.7%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Performance Materials and Technologies 2

Honeywell Investor Conference March 7, 2012

Strong Management Driving Results

Differentiator Mechanism
Annual Segment Margin, PMT vs. Industry Peers Segment Margin, Percent
20%

Analytical Capabilities and Innovation Engine

Technology Investments and VPDTM Process

Honeywell 16%

Plant Performance and Process Technology

HOS and Plant Strategic Plans

12% Specialty

8%

Sales and Marketing Excellence

Global Demand Capture and Sales Force Deployment

4%

Diversified

0%

Operating Approach and Leadership

Business Decision Week

2005

2006

2007

2008

2009

2010 2011 *

* Specialty and Diversified based on average of companies reporting FY11 actuals

Performance Materials and Technologies 3

Honeywell Investor Conference March 7, 2012

PMT Core Strategies

Operational Excellence HOS Increased Attainment Yield Improvements Debottlenecking Plant Strategic Plans Safety

New Product Introductions

Globalization and Market Creation

Sales and Marketing Excellence

Long-Term Growth

Molecule Scale-Up

High-Growth Region R&D

Sales Force Deployment

Investments / Partnering
Leveraging Technology Pipeline Project Execution

Technology Leadership

Global Demand Capture

Regionalization

Application Development

Strong Governance And Processes

Pricing Excellence

Successfully Implemented At PMT

Performance Materials and Technologies 4 Honeywell Investor Conference March 7, 2012

Operations: Electronic Materials

HOS Lean Cycle Times Cost

Product 1 Asia
Inventory Walking Distance Part Traffic Distance Lead Time Crew Size Manufacturing Conversion Cost -45% -87% -50% -55% -50% -50%

Yield
Debottleneck

Capacity Cost

SIOP Discipline

Customer Responsiveness Inventory

Product 2 U.S.
Inventory Walking Distance Part Traffic Distance Lead Time Crew Size Manufacturing Conversion Cost -60% -70% -85% -82% -50% -28%

Quality Excellence

Customer Satisfaction Cost

HOS Paying Dividends In Production

Performance Materials and Technologies 5 Honeywell Investor Conference March 7, 2012

New Products: UOP

Oleflex Technology Produces Propylene (in High Demand) for Plastics From Natural Gas at Lower Cost

Six Contracts, Including Five

in China, in 2011

ADS-47 Adsorbents

Improves Yield for In-demand Building Blocks for Plastics in Current/New Plants
Filter Materials Remove Radioactive Contaminants From Water Processes Heavy Oils and Offers 4 to 10% Additional Transport Fuel Per Barrel

First Sale in 2011 Cleaning Radioactive Water

in Fukushima, Japan

E-911 Adsorbents

Uniflex Process Technology

First License to Pakistan's

National Refining Ltd.

Methanol-toOlefins Technology

Produces Low-Cost Plastic From Natural Gas/Coal Rather Than Oil

First License in China, a Key

Market for the Technology

Groundbreaking Technologies Established In 2011

Performance Materials and Technologies 6 Honeywell Investor Conference March 7, 2012

Globalization: Resins And Chemicals

Caprolactam
Critical Ingredient for Making Nylon Used in Carpeting, Clothing, Engineered Plastics

Driving Global Growth

Doubled Sales From Outside U.S. for Key Products Over the Last Four Years 41% of Sales Outside the U.S.

Nylon Resin
Used in Applications From Food Packaging to Automotive

2007

2011

Ammonium Sulfate
Effective Fertilizer Used Globally for a Range of Plants and Crops

Moved From Distributors to Direct Sales to Extract More Value >40 New Customers in Asia in 2011 Leveraging Global Technology Centers of Excellence to Engineer for Local Markets

Major U.S. Export

Performance Materials and Technologies 7 Honeywell Investor Conference March 7, 2012

Sales/Marketing: Specialty Products

Collaborative, Online Process to Identify and Prioritize ~500 Opportunities Per Year
Identification and Sampling Customer Qualification Conversion

18% of Sales From New Products Launched Since 2008

~175 New Customers in 2011

Current NPI Pipeline: ~$1B Sales/Year in 2016 Applications Ranging From Lightweight Ballistic Materials to Asphalt Additives

<1 month
Value Prop Economics

6-12 months
Pilot and Trial Customer Value

ms <2 months
Pricing Launch

Fast-Cycle, New Product Machine

Performance Materials and Technologies 8 Honeywell Investor Conference March 7, 2012

Growth: Fluorine Products

SolsticeTM 1234yf For Mobile A/C Global Warming Potential of 4 vs. 1430 for Current Refrigerant Comparable Cooling Efficiency to Current Refrigerant Near Drop-in Replacement, Saving Significant Cost for Customer vs. Alternative Meeting New European Regulations Significant Customer Wins Opportunity
107 77.6
Global Light Vehicle Builds (M)* 1 Vehicle = 1 lb Refrigerant
2011E 2020E

High Growth Opportunity HON Only a Minor Producer of Current Mobile A/C Refrigerant Today

Source: Goldman Sachs Japan 2011

Superior Environmental Performance

1,500
AC related CO2e emissions (vehicle lifetime)

Direct Emissions Indirect Emissions

1,000

Strong Patent Position

$1.5B Opportunity

500

30% Lower Emissions vs. Alternative

HFC (Today's Refrigerant) Solstice 1234yf CO2 (Competing Solution)

New Technology Meets New Industry Need

Performance Materials and Technologies 9

Honeywell Investor Conference March 7, 2012

Transformed New Product Introductions

Specialty Materials PMT

10 Years Ago
Limited Metrics
Stage Gates, But No Business Ownership

VPDTM

Today

Good Metrics
Business Leaders Engaged at the Highest Level CEO and VP/GMs True Cross-Functional Engagement Value Propositions Guiding Decision Making Top-level Management of Portfolio Ensures Prioritization of Resources Enhanced Ability to Forecast Sales Impact From NPI Investing in Game-Changing Technologies

Technology, Rather Than Business, Process

No Management of Entire Portfolio

Little Data on R&D and NPI Performance Poor Ability to Forecast Sales Impact From NPI Little Investment in GameChanging Technologies

People, Processes And Portfolio Keys To Success

Performance Materials and Technologies 10 Honeywell Investor Conference March 7, 2012

People
The Right People.
1,100 Scientists ~400 Ph.D.s 2,800 Process Engineers

In The Right Places Globally

8 Technology Centers of Excellence Newest Facilities in India and China, Developing Products/Applications for Local/Global Markets Increased Global Process Engineering Capabilities

3,915 Patents Globally

Recognized Researchers In Their Fields

2012: Ben Christolini ACS Earle B. Barnes Award for Leadership in Chemical Research Management 2011: Gavin Towler AIChE Fuels & Petrochemicals Division Award 2010: UOP-ENI Green Jet & Diesel team AIChE Sustainable energy award 2010: Jeff Bricker ACS National Award for Creative Invention 2009: Rajiv Singh ACS Schoellkopf Medal Award 2008: Ian Shankland Perkin Medal 2005: UOP National Medal of Technology

Punching Above Our Weight

PMT Ranks No. 4 in Its Sector for Innovation, Placing it Among Companies of Much Larger Scale and Sales

Issued Patents at Record Levels

Invention Disclosures at Record Levels

Technology Breadth And Depth

Performance Materials and Technologies 11 Honeywell Investor Conference March 7, 2012

Velocity Product Development Process

General Manager is the Owner Business and Technology Co-Leaders All Functions Involved
Stage 1 Stage 2
Proof of Concept Testing

Stage 3
Application Testing, Piloting, Basic Engineering

Stage 4
Scale-Up, Plant Design and Engineering

Stage 5

Definition of Needs

Business Case
Voice of the Customer

Product And Process Development

Product Qualification, Regulatory Approvals

Commercial Readiness
Demonstration Runs, Customer Qualification, Launch Plan

Launch

Fast Cycle Applications

Leverages Existing Technologies and Capabilities Technology and Marketing Agility Applications Expertise Lower Resources and Capital

Technology Leadership
Technology Licensing Model Strong Research Pipeline New Materials Discovery Process Development and Pilot Plants Technology Peer Reviews Customer / Demonstration Runs Cycle Time: 2 to 5 Years

New Molecule
Molecule Discovery Regulatory Approvals Asset and Capital Investments Process Development and Scale-Up Front-End Engineering Technology Peer Reviews Cycle Time: 5 to 10 Years

Cycle Time: 6 Months to 2 Years

Common Process Tailored For Three Business Models

Performance Materials and Technologies 12 Honeywell Investor Conference March 7, 2012

Fast Cycle: Spectra X Ballistic Materials

Superior Performance Application
Law Enforcement and Federal Agencies

Market Size

9mm V50 (fps)

15% Better Ballistics

$50M+

Today's High End Vest

Vest with Spectra X

Special Ops

$60M+

Weight (lbs)

15% Lighter Weight

Military Vests

$100M+

Today's High End Vest

Vest with Spectra X

This is the best stuff weve ever shot you have a winner. CEO, Leading
Vest Manufacturer

Military Helmets

$60M+

Leveraging Breakthrough Fiber Technology Across Multiple Segments

Performance Materials and Technologies 13 Honeywell Investor Conference March 7, 2012

New Molecule: LGWP Materials

Extending SolsticeTM LGWP Platform
Aerosol / Insulation Panels Foam Insulation / Solvents

Opportunity
Extends and Expands HON Position Demand for Energy-Efficient Insulation Driving Future Growth Strong Patent Positions

Solstice 1234ze

Solstice 1233zd

Environment
Performance

Global Warming Global Warming Potential of 6 vs. 1430 Potential of 7 vs. 1030 Meets All Requirements Non-Flammable Economic in Use Today Improved Energy Efficiency Non-Flammable Near Drop-in Replacement

Good Customer Acceptance

Leveraging Assets
Using Existing Products/Technology As Feedstocks for New Products Existing Products

Safety Cost-to-Serve
Opportunity

240

245fa

>$300M

>$300M

New Products 1233zd

1234ze

Creating Value For Global Customers

Performance Materials and Technologies 14 Honeywell Investor Conference March 7, 2012

Technology Leadership: UOP

Technology Focus Areas
Process Technology

Competitive Advantage

Providing Refiners, Petrochemical Producers More Feedstock Flexibility, Higher Yields Processing Heavier Crudes and Getting More Out of Each Barrel of Oil Removing Broader Group of Contaminants From Natural Gas Making Processing Units Smaller and More Robust for Off-shore Applications

Gas Processing

More Than 100 Pilot Plants to Test Process Technologies High-Throughput Screening to Rapidly Evaluate Catalysts and Materials Ability to Evaluate Materials at the Atomic Level Advanced Computer Modeling and Simulation

Catalysts and Adsorbents

Boosting Yields in Both Current and New Process Operations Moving into Adjacencies, New Applications

Allowing Refiners to Produce Real Fuels From Biofeedstocks Such as Algae Renewables Processing Solid Biomass Such as Forest Waste to Transportation Fuels

Extending UOP Technology Leadership

Performance Materials and Technologies 15 Honeywell Investor Conference March 7, 2012

New Product Portfolio Metrics

# Active Projects

Prioritized and Reduced Number of Projects Concentrated Resources on Top Projects Accelerated Execution

324 213

Yr 5 Gross Sales Potential ($B)

4.0 2.1

34%
2009 2011

90%
2009 2011

Increased Portfolio Value Increasing New Product Sales as % of Total Sales Over Five-Year Period Mix of New Products Shift More New vs. Replacement Products

5 Yr New Product Sales (%)

31 20

New / Replacement Product Sales (%)

75 50

2012

2016

2012

2016

Track and Measure New Product Programs Each Month Exceeded our New Product Forecast Each of the Last Two Years

# Product Launches
67 40

Launch Year Sales ($M)

199

100

60%
2009 2011

99%
2009 2011

Performance Materials and Technologies 16

Honeywell Investor Conference March 7, 2012

UOP Industry Landscape

Global Energy Demand Tracks GDP
800 700
Quadrillion Btu

Natural Gas Opportunity

200
Trillion cubic feet

Gas Share of Global Energy to Grow From 21% to 25% by 2035

600 500 400

150 100 50 0

300
200 100 0 2008 2015

Worldwide Energy Demand

Worldwide Natural Gas Demand

2020

2025

2030

2035

Source: US Energy Information Administration

2008 2015 2020 Source: US Energy Information Administration

2025

2030

2035

Refining Opportunity
Regional Factors Environ. Reg. Capacity Replacement National Security

Petrochemical Example
5-8% Growth
120,000 100,000 80,000

On-Purpose Production Conventional Production

KMTA

60,000 40,000

~1.3%

20,000
0 Base Oil Demand

Demand for On-Purpose Propylene Expected to Nearly Triple From 2010 to 2020

Underlying Growth Trends In UOP Sweet Spot

Honeywell Investor Conference March 7, 2012

Refining Growth

2011

2015

2020

Performance Materials and Technologies 17

UOP Adding Value

Boosting Diesel Yield
Highest Yield, Lowest Sulfur Technology; 200+ Units Globally Technology to Improve Fuel Quality; 300+ Units Globally Catalysts Optimize Yields and Profitability

Upgrading Heavier Crude

Industry-leading Conversion (90%+) to Fuels with Less Byproducts

Optimizing Refineries
Configuration Design Optimization Design Services Training/Start-Up Front-End Engineering Design Energy Savings

Process to Convert Contaminated Feedstocks into Gasoline

Average $15B Investment

Customer Result
Increase in Feedstock Value ($/MT)

Average $1B Investment

Customer Result
Increase in High-Value Fuel Conversion

Average $10B Investment

Customer Result
Increase in Refinery Margins vs. Base Design

$270 60% $2.3B

4-6% 50% $300M

20% 1 yr $2B

Incremental Conversion to Higher-Value Fuels Customer Value Created

Increase in Refiner Margins

Reduction in Construction Cycle Time

Customer Value Created

Customer Value Created

Performance Materials and Technologies 18

Honeywell Investor Conference March 7, 2012

Advanced Materials Transformation

Segment Profit Growth Highlights More Than Doubled Segment Profit Since 2008 High Point Pricing, Operations Excellence Driving Results Creating New Markets Executing Robust NPI Pipeline Investing in New Plants for Growth Strong NPI Pipeline

2008

2009

2010

2011

Asphalt Additives

Low-GlobalWarming Products

Resins for Fishing Nets

Films for PV Panels

Spectra Helmets

Businesses Performing Strongly

Performance Materials and Technologies 19 Honeywell Investor Conference March 7, 2012

Advanced Materials Highlights

Fluorine Products Large Molecule
Achieved Record Profitability Launched SolsticeTM Mobile A/C Refrigerant (HFO-1234yf), Gas Blowing Agent (HFO-1234ze) and Liquid Blowing Agent (HFO-1233zd) and Secured ~$1B in New Contracts

Resins And Chemicals

Achieved Record Profitability Daily Rigor on Price

Effective Global Reach

Designed and Licensed First Sulf-N 26 Lower Explosive Fertilizer Plant
Solstice yf Refrigerant

Created Sinochem JV to Expand 245fa Blowing Agent in Asia

Acquired Phenol Facility; Diversified Cumene Supply for Hopewell Production

Sulf-N 26 Fertilizer

Game-Changing Technology
Specialty Products
Achieved Record Profitability and New Products

Global Position and Reach

Electronic Materials
Major Wins in the Differentiated Space of Targets, Electronic Polymers and PV Significant Wins in Electronic Chemicals Gains With Key Customers to Grow in Semiconductor Down Cycle

Fast-Cycle

Launched Expansion Plans for Aclar, Photovoltaics and Asphalt Continued Success in New-Product Commercialization Breakthrough Spectra X Gaining Traction in the Market
Spectra Helmet Technology

Physical Vapor Deposition Target

NPI Driving Growth

Performance Materials and Technologies 20

Adjacent Market Growth

Honeywell Investor Conference March 7, 2012

Truly Global
High Growth Regions
India China / SE Asia Latin America Africa FSU Mid East

India Technology Center

Expands Global Research Capabilities For:

Refining, Petrochemical Low-Global-Warming Products

Nylon and Additives Applications

New/Expanded Regional Technical Sales and/or Support New/Expanded Technology Development Capabilities New/Expanded Procurement Capabilities New/Expanded Project Engineering Capabilities

First UOP Pilot Plants Outside U.S. Close-to-Customer Technology Development

Approaching 50% Of Sales From High Growth Regions In 2012

Performance Materials and Technologies 21 Honeywell Investor Conference March 7, 2012

Becoming The Chinese Competitor

Strongly Competitive Joint Venture With Sinochem to Produce Blowing Agents Expand SUOP Catalyst Production
Step 3: Strategic Acquisitions and In-Country Manufacturing

Sales

Step 2: Enhance Sales and Marketing Presence

Expanded Direct Customer Base for Caprolactam, Resin

Doubling UOP Sales Force in China

Shanghai Lab Expanded to Serve Local Customers >$80M in 2011 Sales From New Products Developed At the Lab

Import Goods from Developed Regions

Step 1: Establish Strong R&D and Technology Presence

Time

Strengthening High-Growth Region Leverage

Performance Materials and Technologies 22 Honeywell Investor Conference March 7, 2012

Honeywell Operating System

HOS Deployment Status
Sites Deployed

HOS Results

38
Bronze Certified

29
Silver Certified

Observed Improvement for Plants Reaching Bronze Status

Safety (TCIR): Quality (PPM): Delivery (OTTR): Inventory (DOS): 64% Reduction 65% Reduction 3 pt Improvement 7 day Improvement

15

14

1
2009 Today 2014E

Cost Improvement: 12%

Nearly 50% of Conversion Cost in Bronze or Silver

HOS Driving Gains In Production

Performance Materials and Technologies 23 Honeywell Investor Conference March 7, 2012

Business And End Market Update

Business Current Environment
Continued Global Investments to Meet Refined Product Demand High Win Rates and Execution of Backlog Driving Strong Results

Great Positions
Sustained Technology Leadership Position in Key, Emerging Refining Technology Natural Gas Emerging As Growth Opportunity

UOP

Overall Tight Caprolactam Supply/Demand, Lowest-Cost Position in Key Products But Prices Moderating Off 2011 Highs Resins & Strong, Growing Position in Emerging Chemicals Fertilizer Demand Steady, But Prices Regions Moderating Off Late 2011 Highs

Fluorine Products

Recognized Leader in Refrigerants, Blowing Moderation From Record Price Levels Due Agents, Solvents to Increased Supply on Key Products Next-Generation Low-Global-Warming Three New Low-Global-Warming Molecules Potential Products Drive Growth
Continued Strength in Armor, Films New Product Wins Gaining Traction Pockets of Softening Demand Attractive Businesses Serving Niche Segments in Larger Markets Fast-Cycle Expertise With Robust New Product Pipeline and Marketing Capabilities

Specialty Products

Weaker Demand Expected Through At Electronic Least Q1 Due to Continued Inventory Drain Strong Positions With Key Industry Players Materials Moderate Growth in Second Half of 2012 Expanding Into Attractive Adjacencies As Inventory Rebuilds

Great Positions In Good Industries

Performance Materials and Technologies 24

Honeywell Investor Conference March 7, 2012

Long-Term Outlook Update

($B)

Sales
2012 Up 8 - 10%

Segment Margin
Long Term Goal: 16 - 18%

Long Term Target: 7 - 9% CAGR

$6.1 6.2 $5.7 $4.7

target

$5.6 6.3 18.4% 15.8%

target target

~18%

16.0-18.0%

target

2010

2011

2012

2013

2014

2010

2011

2012

2013T

2014T

Overdriving Long-Term Targets

Performance Materials and Technologies 25 Honeywell Investor Conference March 7, 2012

Summary
Operating Margins at Record Levels
Outperforming Peers Strong Management Structure, Disciplined Process Robust New Product Pipeline, Investing for Growth

Growing Globally in Presence, Sales

Performance Materials and Technologies 26

Honeywell Investor Conference March 7, 2012

Transportation Systems
Alex Ismail President and CEO
Transportation Systems 0 Honeywell Investor Conference March 7, 2012

Honeywell Transportation Systems

Financials
($B)
Sales Segment Margin %

Revenue Profile
$3.9-$4.0 Businesses
FM 19% Turbo 81%

$3.6 $3.2

$3.9

End Markets

Geographic Mix
Asia 19%

12.6%

10.8%

$2.4
2.5%

11.1%

12.7% 13.0%

AM 24% OE 76%

Americas

17%

Europe 64%

2008

2009

2010

2011

2012E

Note: 2011 Sales

Top Stories
Fuel Efficiency and Emissions Regulation Drive Long-Term Growth Win Rate and New Launches Supporting Growth Faster Than Industry Technology Leadership Across All Fuels, Segments and Geographies Operational Transformation: HOS Advantage, FM Turnaround in Progress

Margin Expansion On Flat Revenues

Transportation Systems 1 Honeywell Investor Conference March 7, 2012

2012 Automotive Industry Macros

North America
+7%
0.9 12.9 1.0 13.8 1.6

Europe
-8%
1.4

China
+7%
2.7
2.6

Japan
+14%
0.7 0.8 9.3

16.8 18.0 20.1 18.5

17.2

18.7

8.1

2011 2011
15%

2012
13%

2012
18%

12%

2011
67%

2012
70%

2011
19%

2012
20%

South Korea
0%
4.6 4.6

India South America

+6%
0.5
4.4 4.7 3.6

+15% 2011
0.5
4.2 35%

2012
35%

2011
11%

2012
11% %

Commercial Vehicle Production

Light Vehicle Production Turbo Penetration

2011
40%

2012
43% Vehicle Production (M Units)
Source: LV - Global Insight; CV - JD Power, PSR

Headwind
EU Recession EU Declining Production

Impact TBD
Tighter Credit for Cars Material & Metals Inflation $/Euro FX Rate

Tailwind
~100 Turbo Launches Global Turbo Penetration EU Diesel Penetration

Turbo Penetration Offsetting EU Production Decline

Transportation Systems 2 Honeywell Investor Conference March 7, 2012

Tightening Fuel Regulation

2020 2011

75 60 45 30 15

67 MPG

2020 2011

75 55 60 45 30 15

MPG

75 47 60

2020 2011

45 30 15

MPG

Fleet average fuel economy and green house gas emissions standards standardized by CAFE-converted MPG

Turbocharging A No Compromise Solution to Consumers

- Small-Engine Fuel Economy Large-Engine Performance - Enables Up to 35% Fuel Efficiency with Same Horsepower

More Stringent Regulation Drives Turbo Adoption

Transportation Systems 3 Honeywell Investor Conference March 7, 2012

Turbo Industry Outlook

Turbo Industry By Vehicle
Commercial Vehicles Light Vehicles Turbo Penetration

Turbo Industry By Fuel

Gas Diesel Turbo Penetration

36%
38M

36%
33%
38M
32M

33% 30%
26M 32M

30%
26M

2012

2014

2016

2012

2014

2016

Industry volume based on number of turbocharged engines. Source: Global Insight, PSR, JD Power, Honeywell

CNG engines Part of gas; Hybrids included in gas/diesel

Turbo Penetration Accelerates; Significant Upside Remains Turbo Gas Growing Quickly, But Turbo Diesel Still Majority of Volume

HON Has Great Position In Good Industry

Transportation Systems 4 Honeywell Investor Conference March 7, 2012

Honeywell Differentiation Drivers

Technology And All Segments, Innovation Leadership All Fuels, All Regions Operational Excellence

One Honeywell Advantage Aerospace Technology Flawless Launches

Growth in Gas/CV Segments Geographic Expansion ER End-to-End Capabilities

HOS Competitive Advantage Customer Satisfaction Cost Leadership

HON Positioned To Lead The Industry Growth

Transportation Systems 5 Honeywell Investor Conference March 7, 2012

Honeywell Advantage

One Honeywell Jet Engines (AERO), Controls (ACS), Green Fuels (PMT) Largest Global Customer Base Unique Engineering Insight 100+ Million Turbos Shipped Launch Expertise and Field Experience

Setting Turbo Industry Standards For All Vehicles

Transportation Systems 6 Honeywell Investor Conference March 7, 2012

Key Turbo Launches

THIS PAGE LEFT INTENTIONALLY BLANK

Transportation Systems 7

Honeywell Investor Conference March 7, 2012

Gasoline Turbo Growth

Flagship Platforms Key Launches

VW Passat 1.8L
Driving U.S. Gas Growth

Mercedes-AMG S63 5.5L

High Performance Twin Turbo

SAIC/Roewe 550 1.8L

Gasoline Turbo for China

Chevy Cruze 1.4L

U.S. Bestseller 42MPG

Highlights 20% Industry Volume CAGR Through 2016 From Increased Turbo Pen. Strong Growth Through New Launches in US, EU, China

New Product Range Drives HON Growth Globally

Transportation Systems 8 Honeywell Investor Conference March 7, 2012

Commercial Vehicle Turbo Growth

Flagship Platforms Key Launches

Caterpillar C175 / 3500

Enabling Tier4 Emissions

MAN 10.5/12.4L
Latest EU Fuel-Efficient Technology

Hino 4.0L Dutro

Medium Duty On-Highway

Weifang Diesel 10L

First China-Specific Product
Weifang Diesel Wuxi Diesel

YCM

Highlights 7% Industry Volume CAGR Through 2016 From New Emission Standards Leveraging Aerospace Technologies to Introduce Advanced Innovations

Innovation Across Broadest Range Of Products

Transportation Systems 9 Honeywell Investor Conference March 7, 2012

Europe Turbo Growth

Regulation Turbo Industry Sales
+8% CAGR

2020
60 75

19M

17M

2011

45 30 15

67 MPG

14M
Gasoline

2020 Target 67 MPG

Diesel

2012

2014

2016

Source: Global Insight, PSR, JD Power, Honeywell

Highlights 8% Industry Volume CAGR; Diesel Volume More Than Double Gasoline Technology Lead in Premium and Small Engines with New Products

Strengthening Leadership In Largest Turbo Region

Transportation Systems 10 Honeywell Investor Conference March 7, 2012

China Turbo Growth

Regulation Turbo Industry Sales
+16% CAGR

7M

2020 2011

60

75

45
30 15

55 MPG
Gasoline

6M 4M

2020 Target 55 MPG

Diesel 2012 2014 2016

Source: Global Insight, PSR, JD Power, Honeywell

Highlights 16% Industry Volume CAGR Driven By Increased Turbo Adoption Best-in-Class R&D Facilities Drive Local Innovation Speed End-to-End

Becoming Local Chinese Competitor

Transportation Systems 11 Honeywell Investor Conference March 7, 2012

North America Turbo Growth

Regulation Turbo Industry Sales
+17% CAGR

5M

75 60

2020

45 30 15

47 MPG

4M 2M

2011

2020 Target 47 MPG

Gasoline Diesel 2012 2014 2016

Source: Global Insight, PSR, JD Power, Honeywell

Highlights 17% Industry Volume CAGR Driven By Increased Turbo Adoption Leading Turbo Adoption in Passenger Cars Chevrolet, VW, Ford

Flagship Launches Across All Segments

Transportation Systems 12 Honeywell Investor Conference March 7, 2012

Friction Materials Transformation

THIS PAGE LEFT INTENTIONALLY BLANK

Transportation Systems 13

Honeywell Investor Conference March 7, 2012

HOS Honeywell Operating System

Twenty-Year Competitive Advantage

Transportation Systems 14 Honeywell Investor Conference March 7, 2012

Long-Term Outlook Update

Sales
($B)

Segment Margin
Long Term Goal: 14 - 15%
2010 - 2014: ~290 - 390 bps Margin Expansion

Long Term Target: ~7% CAGR

2010 2014: +6 - 8% CAGR

$4.0 - $4.4 $3.9 $3.2 $3.9 - $4.0 12.6% 11.1% 12.7-13.0%

14.0-15.0%

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

On Track To Achieve Targets

Transportation Systems 15 Honeywell Investor Conference March 7, 2012

Summary
Fuel Efficiency Regulations Drive Long-Term Growth Win Rate and Launches Drive Growth Faster Than Industry Leadership in All Fuels, Segments, Geographies

Operational Excellence Through HOS

Multi-Year Profitable Growth

Transportation Systems 16 Honeywell Investor Conference March 7, 2012

Honeywell Operating System

Pasquale Abruzzese Mike Owens
VP Transportation Systems VP Aerospace Integrated Supply Chain Integrated Supply Chain

Driving Growth With HOS

Quality

Customer Satisfaction

Accelerated Growth Rate

Delivery

Safety Productivity Inventory Cost Leadership Op Margin Expansion

HOS Maturity Drives Top And Bottom Line Results

Honeywell Operating System 1 Honeywell Investor Conference March 7, 2012

HOS: A Shift In Mindset

From To

Top Down Plant Leadership

Leaders Acting as Coach

Project Based Improvements

Continuous Improvements

Operators as Doers

Operators as Doers and Thinkers

Unrealized Improvement Ideas

Rapid Problem Solving Culture

People Working Smarter Not Harder

Honeywell Operating System 2 Honeywell Investor Conference March 7, 2012

Driving Continuous Improvement

Improvement Ideas Before Process After

Daily walk of 2.7km 100,000+ New Ideas Annually Input Locally/Implemented Globally

Daily walk of 150 meters

Reduced Inventory by 50% Operator Led Improvements

Continuous Improvement Culture Ingrained

Honeywell Operating System 3 Honeywell Investor Conference March 7, 2012

Process Standardization
Visual Management Capacity Optimization
Before
MACHINES MACHINES

After
SPACE AVAILABLE FOR GROWTH
MACHINES MACHINES

MACHINES

MACHINES

MACHINES

MACHINES

MACHINES MACHINES MACHINES

MACHINES

MACHINES

MACHINES

Rapid Problem Solving on Floor Learning Shared Across Sites

+25% Output / Square Feet Space Available for Growth

HOS Implementation From 3 Years To 1 Year

Honeywell Operating System 4 Honeywell Investor Conference March 7, 2012

HOS Evolution

Bronze
Four Walls of the Factory
Continuous Improvement Lean Tools

Silver
Cross Functional Integration
Sales and Ops Planning Procurement

Gold
Speed to Market
New Products VPD

Total Business System

HOS Now Impacts All Aspects Of Business Model

Honeywell Operating System 5 Honeywell Investor Conference March 7, 2012

Turbo Operations Overview

Full Product Range 1L to 100L Global Footprint 13 Countries Global Sourcing 30 Countries
Supply Chain Component Suppliers

Manufacturing CORE Technology

Just in Time Delivery 10,000 SKUs

People Culture
1,000+ Suppliers

Broad Portfolio; Complex Global Supply Chain

Honeywell Operating System 6 Honeywell Investor Conference March 7, 2012

Key Results: Silver Turbo HOS Sites

Delivery Quality/PPM Productivity Rate Inventory

+10%

-70%

+40%

-50%

Before Bronze Silver

Before Bronze Silver

Before Bronze Silver

Before Bronze Silver

Industry Best in Class Performance

Customer Satisfaction and Cost Leadership

Long Term Competitive Advantage

Honeywell Operating System 7 Honeywell Investor Conference March 7, 2012

HOS: Turbocharging Growth

Transportation Systems Sales
$3.9 $3.9-$4.0 $4.0-$4.4

Quality
Customer Satisfaction Accelerated Growth Rate

$3.2

Delivery

2010

2011

2012

2013

2014

Transportation Systems Segment Margin

Safety
12.6% 12.7-13.0% 11.1%

14.0-15.0%

Productivity

Cost Leadership

Op Margin Expansion

Inventory
2010 2011 2012 2013 2014

Great Position In Growing Industry

Honeywell Operating System 8 Honeywell Investor Conference March 7, 2012

Aero HOS Building On TS Success

% Aero Manufacturing Cost
Year End 2011

Silver 6% HOS Now Deployed Across All Aero Sites

Bronze

35%

Full Scale Deployment

Leveraging HON-Wide HOS Success

59%
Silver/Bronze Sites Productivity Up 50%

Accelerating Aero HOS Deployment To Maturity

Honeywell Operating System 9 Honeywell Investor Conference March 7, 2012

Accelerating Aero HOS Deployment

Deployment Timing Honeywell Aerospace
Months to Bronze 60 50 40 30 20 2006 2007 2008 2009 2010 2011

2012
11% 30%

2013
14% 15% 71%

2014
33%

2015

2016
32%

59%

51% 67%

49% 68%

% of Conversion Costs By Phase

HOS Deployed

Bronze Sites

Silver Sites

100% Of Manufacturing HOS Bronze+ By 2014

Honeywell Operating System 10 Honeywell Investor Conference March 7, 2012

Aerospace Operations Overview

84 Product Lines/10 Product Families Technology Global Footprint - 17 Countries Global Sourcing - 41 Countries CORE Technology Suppliers Supply Chain Plan for Every Part Delivery 80,000 SKUs

People Culture
14,000 Suppliers

Accelerating Productivity And Flexibility Through HOS

Honeywell Operating System 11 Honeywell Investor Conference March 7, 2012

HOS Silver Minneapolis Site

Best Practices
Accountability Down to Shop Floor Processes to Enables Issue Escalation

Employee Culture
Empowerment of Operators Leadership Support and Coaching

Sites Connected to WW Functions

Employee Driven Improvements

Delivery
+240bps

Quality/PPM
-60%

Productivity Rate
+125%

Inventory
-26%

Before Bronze Silver

Before Bronze Silver

Before Bronze Silver

Before Bronze Silver

Customer Improvement Without Walls

Honeywell Operating System 12 Honeywell Investor Conference March 7, 2012

Customer Feedback

Overall, HOS provides the framework for gains in productivity and quality beyond that typical in manufacturing. It is an industry best practice.

HOS is engrained, and it is evident that leadership is committed.

[Recent] results are strong evidence that key ISC initiatives rolled out at the siteincluding HOS projects are paying huge dividends.

Customers Seeing Real Value Of HOS

Honeywell Operating System 13 Honeywell Investor Conference March 7, 2012

HOS A Jet Engine For Growth

Foundation of Continuous Improvement Culture Building Upon Lean Tools and Standardization

Reaching Beyond the Factory Walls

Customer Satisfaction and Cost Leadership

HOS Accelerates Growth Rate And Margin Expansion

Honeywell Operating System 14 Honeywell Investor Conference March 7, 2012

Aerospace
Tim Mahoney Presidentzand CEO

Honeywell Aerospace

Great Position In A Good Industry

Aerospace 1 Honeywell Investor Conference March 7, 2012

Transformed Organization
From
Product Organized Bid Everything Product-led Pursuits Non-integrated Portfolio Minimal Sales People Outside U.S. Census: ~500 HC, or ~20% S&M Federated Engineering Organization 4 Walls of the Factory Higher Cost Structure Capitalized Sales Incentives

To
Customer Facing Organization Marketing/Product Management Excellence Integrated Platform/Product Pursuits Compete Across Portfolio, RMU Opportunities 2x Intl Sales & Marketing Presence Census: ~1000, or ~40% S&M Distributed Centers of Excellence Network Capacity, Cross-Functional Capability Less G&A; More Efficient R&D, S&M 100% Expense Drives Better Decision Making

Customer Centric Organization Strong Competitive Advantage

Aerospace 2 Honeywell Investor Conference March 7, 2012

Strong Aerospace Outlook

Sales
CAGR 4%

Key Recent Wins

~$13B
Comml OE ~25%

>$20B in Unannounced OEM

Orders Across the Portfolio

$11.5B
Comml OE 19% Comml AM 36%

- $9B Propulsion, $7B Avionics

Comml AM ~35%

- $4B Mechanical Systems

$2.5B Airline Wins 2011

D&S 45% D&S ~40%

- $400M in APAC Wins in Q411

$2.7B in D&S Wins 2011

- Defense Book-to-Bill > 1

2011

2014

Winning Momentum Drives Aero Growth Outlook

Aerospace 3 Honeywell Investor Conference March 7, 2012

Strong Pipeline Of New High Impact Aircraft

Broad, Unmatched Wins

Aerospace 4 Honeywell Investor Conference March 7, 2012

Expansive Product Breadth

Delivering New Innovations
Enhanced Safety Products Air Traffic Modernization Innovative Mechanical and Electronic Solutions Airborne Connectivity

Unmatched Breadth, Uniquely Innovative

Aerospace 5 Honeywell Investor Conference March 7, 2012

New Safety Innovations Available Now

Smart Runway Smart Runway - Reduces Runway Incursions
Approaching Runway ThreeFour Left

Smart Landing - Reduces Landing Risk

Smart Landing

Reduces Runway Incursions

Improves Safety of Landing and Taxi Reduces Pilot Workload Lowers Incident Costs
Currently 30 Runway Excursions/Year

Reduces Landing Risk

3,000 Units Sold Certified for 10,000+ Aircraft 30,000+ Total Aircraft Available $500M Growth Opportunity

New Innovations Address Highest Safety Issues

Aerospace 6 Honeywell Investor Conference March 7, 2012

Delivering ATM Benefits

Honeywell Offering Examples
ATM Modernizing Worldwide to Increase Capacity, Reliability, Safety and Affordability HON Leading Way with Integrated Comms, Nav, Surveillance and Automation Solutions That Provide Unmatched Customer Value >$50B Addressable Market for Honeywell
Market

Comms

$8B

Surveillance $8B

Market

- Satcoms (EMS) - Now - VHF Radios - Now - Datalink - Now

Market

-SmartView - Now - GBAS - Now - Multi-Sys GNSS - 2016

Market

Navigation $24B
- ADS-B Out - Displays - ADS-B In - Now - Now - 2013

Automation $12B
- On-Board Auto - 2018 Flight Routing - Auto Tower - 2020
(With HON ACS)

End to End System Solutions

Taxi To Gate

Flight Planning

Approach/Landing Taxi To Runway Cruise

Take-Off/Climb

Monetizing ATM Solutions Today

Aerospace 7 Honeywell Investor Conference March 7, 2012

Mechanical And Electronic Innovations

Smart RunwayElectric Runway Incursions - Reduces Taxi
APUs Electric Power Wheels Brakes

Smart Landing - Reduces Landing Risk

Integrated Controls

Avionics

Avionics

Electric Power

Wheels/ Brakes

APUs

Honeywell - Safran Competitor 1 Competitor 2 Competitor 3

APU-Driven Taxi - Saves Fuel - Reduces Engine Maintenance Costs - No Pushback Tug Required - Lower Emissions - ~$10B Opportunity Size

APEX Cockpit Control of HON Mechanical Systems - Cabin Pressure with FMS - Distinctive Capability - Sold on 90% of APEX Systems

Pushing Beyond Traditional Boundaries

Aerospace 8 Honeywell Investor Conference March 7, 2012

Airborne Connectivity Offerings

Demand for Connectivity Rapidly Growing

- Double to >8K Aircraft by 2014

Integration of EMS Into HON Creates Industrys Strongest Offering:

- Broadest Product Range - Industry Leading Technology - HON Smarts Inside >75% of Others
Products)

- Largest Installed Base Every ATR

Broadband Solution Ability to Combine Satcom with Other HON Products to Create New Offerings

Great Position With Differentiated Technology

Aerospace 9 Honeywell Investor Conference March 7, 2012

Honeywell Defense & Space

Little Exposure To DoD War Spending

Aerospace 10 Honeywell Investor Conference March 7, 2012

Defense & Space Opportunities

Aftermarket / RMU Growth Focused International Growth

Capability: Propulsion, SATCOM, Navigation Operational Efficiency: Condition Based Maint.

Jaguar Re-Engine Modernization

Helicopters Fighters Upgrades

Modernization: Navigation, Displays Safety: Terrain Avoidance, Weather Radar Local Platforms

Opportunities Offset DoD Budget Declines

Aerospace 11 Honeywell Investor Conference March 7, 2012

Commercial Aero Outlook

Air Transport & Regional Outlook Business & General Aviation Outlook

Highlights
HON Well Positioned on Growing Fleets Key New Aircraft Entering Service

Highlights
High HON Content on High Growth Aircraft Key High Content Aircraft Entering Service

- 2011: B787, B747-8 - 2014: A350 - 2016: C919, 320NEO, 737Max

Existing Production Rates Rising

- 2012: G650, G280 - 2013: Legacy 450/500, Falcon 2000S

7 More Unannounced Wins EIS in 2015-2018

- Narrow Bodies, B777, A330

Backlog At Historic Highs

- Avionics and Mechanical Systems

HON Growth Outpacing Market

Aerospace 12 Honeywell Investor Conference March 7, 2012

Commercial Aftermarket Drivers

Global ATR Flight Hours Regional Share Of Flight Activity

~8M Flight Hours Above Previous Cycle 650+ Net Aircraft Out of Warranty vs. Parked ~400 A/C > 16 Years Old Returned to Service

EM Mix Expanded ~20 Pts Last 10 Years Offsets Slower Growth in Developed Regions Increased Balance Reduces Volatility

Oil Prices and RASM Support Continued Growth Growth Outlook Driven by New A/C Deliveries

Flight Hour Growth Continues Emerging Regions Increasing Share

Aerospace 13 Honeywell Investor Conference March 7, 2012

Huge Install Base Opportunity For Upgrades

~24,000 Aircraft

ATR
~50,000 Aircraft

BGA

~40,000 Aircraft

D&S

Commercial Upgrade:
Nitrogen Generation System Reduces Risk of Fuel Tank Fire by Replacing Oxygen with Nitrogen OE Production Began in 2010 Retrofits are Mandated By 2017 $300M+ Program Value
~$225M Short-Cycle Sales Target In 2012

Defense Upgrade:
Health Monitoring System for CH-47 Chinook Helicopter Improves Safety, Increases Readiness and Reduces Operating Costs US Army Equipped Aircraft Getting 5-8% Improved Readiness and Fewer In-flight Aborts 176 CH-47 AC Already Equipped $350M+ Market Opportunity
~$450M Short-Cycle Sales Target In 2012

Customer Needs Driving RMU Adoption

Aerospace 14 Honeywell Investor Conference March 7, 2012

Broadening Our Global Reach

In Past
PHOENIX-CENTRIC
Phoenix-based R&D Limited International Manufacturing U.S. DoD Focused Limited in China Limited in India Domestic Aftermarket Focus

China / India Success

CHINA
Major C919 Winner High Aftermarket Win Rate Local Capabilities Supply Chain RDE Capability Sales and Support Coverage

New Growth Regions

BRAZIL
Helicopter RMUs for Oil & Gas Commercial MRO Licensee Airline Growth

TURKEY
Airline Selectables Helo Upgrades F-16, UAVs, Trainers

INDONESIA
Engines to Indonesian Aero Airline Selectables F-16, Helo Safety Upgrades

INDIA
Jaguar Re-Engine HAL Platform Engines Helicopter Trainer Commercial MRO Licensee Mahindra General Aviation

UNITED ARAB EMIRATES

Emirates Airlines Satcom

Regional Depot Established Chinook Fleet Modernization

VIETNAM
Developing MRO Capability Airline Strategic Partnering

Replicating Success Across High Growth Regions

Aerospace 15 Honeywell Investor Conference March 7, 2012

Execution: Honeywell Enablers Deliver

HOS Delivering Results And Sustaining Our Future

Aerospace 16 Honeywell Investor Conference March 7, 2012

Execution: VPD Generates Results

Previous State
Point Products
Flight Management Systems,
Avionics, Engines

Core Program Investment

Multiple Applications
Next Generation FMS, Primus
Apex, External Lighting

Unique Components
Controllers, Display Processors

Multi-Use Modules Standard Parts and Common Tools

Unique Parts and Tools

Operating Systems, Printed
Board Assemblies

VPD Strengthens R&D Power Significant VPD Progress

>$300M in Productivity Through 2016 68% Reduction in New Part Introductions $860M in Core Investment Through 2016 Simulations Reducing Rig Tests >80% ~$180M+ $220M Sourcing Approvals 61% Faster >3,000 S/W Engineers @ CMMI Level 5

Significant Driver Of Increased R&D Effectiveness

Aerospace 17 Honeywell Investor Conference March 7, 2012

Long-Term Outlook Update

($B)

Sales
2012 Up 3 - 5%

Segment Margin
Long Term Goal: 21 - 23%
2012 Expanding 70 - 100 bps
21-23% 18.3-18.6%

Long Term Target: 4 - 6% CAGR

$12.7 - 13.3 $11.5 $10.7 $11.8 - 12.1 17.2% 17.6%

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Consistent Growth Outlook

Aerospace 18 Honeywell Investor Conference March 7, 2012

Why We Outperform
Transformed, Customer-Centric Organization
- 2x International Sales and Marketing Presence - More Efficient Cost Structure, Higher Incremental Margins

Leading Portfolio And Technologies

- Benefiting From Robust Commercial Up-Cycle - Strong Backlog Growth Outlook Offsetting Defense

Near- and Long-Term Growth Prospects

- Customer Needs Driving Near-Term RMU Sales - ATR and BGA Outpacing Industry Growth

Poised To Outperform
Aerospace 19 Honeywell Investor Conference March 7, 2012

High Growth Regions

Shane Tedjarati
President and CEO
High Growth Regions 0 Honeywell Investor Conference March 7, 2012

The World Continues To Shift

The Past 10 Years
Globalization a Major Driver
- HGRs Now ~30% of Global GDP vs. ~20% - >50% World GDP Growth From HGRs - Focus on China and India the Right Call
(Real GDP, $T)

The Next 10 Years

HGRs Continue to Drive Growth
- China and India Growth Continues, But - Expand Focus to Larger Population of HGRs - Next 8 Needs Best Align with HON Strengths
(Real GDP, $T)

$14.3
Significant Opportunity

$25.1

$8.0
$5.8 $2.2

+4% CAGR

$8.8

$14.3
$8.8

$13.4

+10% CAGR

$5.5

$11.7 $5.5

2001
China & India
Source: Global Insight

2011
Other Emerging

2011
China & India

2021
Other HGR

HGRs A Significant Growth Engine

Honeywell Investor Conference March 7, 2012

High Growth Regions 1

China And India Focus: The Right Call

HON China And India
($B)

Key Drivers
Unqualified Executive Sponsorship Dedicated, Locally Capable Leaders Deep Local Expertise and Insights E4E Product Development and Supply Chain Platform
Supply Chain R&D / ENG

Sales
17% CAGR

$2.4

~16% CAGR

~$4

$0.7
2003 2011
India China

2014E

Census
(K employees)

25K

~4% CAGR

~30K

Marketing

Become THE Chinese Competitor

People

~2K
2003 2011
India China

Segment 2014E

Sales / Channel

A Significant Growth Contributor And Great Foundation

High Growth Regions 2 Honeywell Investor Conference March 7, 2012

Lessons From China / India Success

The Playbook
1

Actions
Invested in ~70 Sites in China and India ~17% CAGR (2005-2010) in Front Office HC Census 25,000 Senior Local Leaders, <50 Expats >300 Local Marketing Experts Long Term Government and Customer Relationships Established Full Local R&D Capability and Authority Broad Mid-segment Product Range Operate As the Local Competitor Innovate At China Speed

Unqualified Executive Sponsorship

2

Dedicated, Locally Capable Leaders

3

Deep Local Expertise and Insights

4

E4E Product Development and Supply Chain Platform

5

Become THE Chinese Competitor

Upgrading Local Capabilities Generates Great Returns

High Growth Regions 3 Honeywell Investor Conference March 7, 2012

HGR Core Strategies

China and India Provide a Strong Base Take HGR Playbook to Other Key Regions Leverage Existing HGR Platform

Growth Geographies

E4E / E2W Platform

R&D Supply Chain Manufacturing

Global Energy And Resources

Resource-led Entry and Pull Through of Other Businesses ONE-HON Focus on Major Energy Trends

Global D&S
Focus on Fast Growing HGR Defense Markets Targeted Entry and Resourcing

Follow The Money

Follow HGR Companies Investing / Building Abroad >80 Chinese and Turkish Contractors in Top 225

Global Foundation for Functional Support

Integrated Strategy To Accelerate HGRs

High Growth Regions 4 Honeywell Investor Conference March 7, 2012

Government Relations, Human Resources, Legal, Communications

E4E Platform
E4E Design
Global Capabilities, Local Needs Full Local R&D

E4E Manufacturing
Global Quality, Local Competitiveness Strong Supply Chain Platform

E4E Sales
Global Brand, Local Channels Local Distribution and Partnership

A Different Mid-Segment ~2.3B HGR Middle Class By 2020, But a Different Middle Class
- <$10k World, vs. Developed >$30k*
ComfortPoint

HON E4E Products

Halo Series Thermostats Youjie 3300

New Global Players Chinese/Indian Competitors Expanding Globally

N-6000 Intelligent Fire Alarm System

PlantCruise by Experion

China Micro Gas Turbo

*Nominal GDP per capita

E4E Engine And Products For The Mid-Segment

Honeywell Investor Conference March 7, 2012

High Growth Regions 5

Growth: Next 8 + Singles And Doubles

The Next 8
Russia 2015 GDP ($T) $2.8 Brazil

Singles And Doubles

Middle East Bolster Existing Footprint

Increasing Level Of Commitment

$3.2 Mexico $1.4 Indonesia $1.3 Turkey $1.0 South Africa $0.5 Poland $0.7 Thailand $0.5

Focused Mgmt Attention

In-country Adults
Strong Local Marketing Use Existing Supply Chain, and R&D Platform Expand Into Mid-segment Expand Sales, Channels

Africa

Many Emerging Economies Resource Play

+
Stans

Follow the Money

Resource Play Accelerate

Other Latin America

Pick Emerging Winners

Apply Proven Formula To Key Geographies

High Growth Regions 6 Honeywell Investor Conference March 7, 2012

Opportunities Heat Map

ACS
HPS Brazil HBS Other ACS OEM

AERO
Airline D&S UOP

PMT
Adv. Materials

TS
HTT, FM Aftermarket

Russia

Mexico

Turkey

South Africa

Poland

Indonesia

Thailand

Significant Opportunities Across SBGs

High Growth Regions 7 Honeywell Investor Conference March 7, 2012

Significant Opportunity

Concrete Opportunity

Limited Opportunity

Global Energy And Resources

Top 30 HGR Energy Countries
Oil & Gas Reserves and Production

Resource-led Geographical Entry

Pull Through of Other Businesses Stans Middle East & North Africa Southeast Asia Sub-Saharan Africa

Latin America

Countries ranked 1-10 Countries ranked 11-20 Countries ranked 21-30 Inaccessible countries
* Excluding Iran, Sudan

Capitalize On Key Energy Trends

Energy Efficiency Alternative Energy Energy Security

Capture Broad Energy And Resource Opportunities

Honeywell Investor Conference March 7, 2012

High Growth Regions 8

Global D&S Heat Map

Top 30 HGR Countries By Defense Spend
Selected 2010 Military Expenditure (USD $B)

Turkey $18B Middle East & North Africa: $92B India $41B

South Korea $28B Southeast Asia $28B

Brazil $34B

Required Elements for Success

Countries ranked 1-10 Countries ranked 11-20 Countries ranked 21-30

Country + Executive

Local GR

Local D&S D.C. + Executives Coordination

Global Local Effort

High Growth Regions 9 Honeywell Investor Conference March 7, 2012

Vietnam Example
Capabilities
One Honeywell Team
- Country Leader with Extensive O&G Experience - Training for Staff and Agents / Distributors

Approach
One-HON Joint Project Pursuits

Continue To Build Capabilities

- Government Relations (Ministry of Industry & Trade, Ministry of Construction) - Technical Project Support - Set up Channels for Spec-In Projects Govt projects Commercial Buildings 5* Hotel/ Resorts

Key Partnerships

Reinforce Compliance
- Processes, Code of Conduct - Training for Staff and Agents / Distributors PetroVietnam Civil Aviation Ministry of Administration Construction

One-HON Project WINs

- Nghi Son Refinery (>$200M next 4 years, UOP/HPS/ Callidus/HLS/Maxon/HSG) - Nam Con Son LPG 2 ($13M, UOP/HPS)

Sales Growing Fast

+63%
$28 2010

+127%
$103

$45
2011 2012E

Vietnam An Example Of Success For Approach

High Growth Regions 10 Honeywell Investor Conference March 7, 2012

HON HGR Sales Outlook

Strong China and India Growth Over Last Decade
Over 20% CAGR Driven By HON Playbook, E4E Strategy Growth Expected to Continue Helping HON Meet 2014 Long Term Targets

Leverage Next 8 to Continue HGR Growth

China and India Base, Core Strategies Facilitate Acceleration Next 8 Growth Accelerating to 20%+ vs. 13% Prior

25%+
Of HON Sales

$10B+
Other HGR China & India

20%
Of HON Sales

~$8.0B

$7.2B

9%
Of HON Sales

$2.0B

2003

2011

2012E

2014E

Next 8 Growth Accelerated To China/India Speeds

High Growth Regions 11 Honeywell Investor Conference March 7, 2012

Summary
Great Progress in Globalization Over Past 10 Years
20% of HON Sales From High Growth Regions, Up 11 Pts

HGR Organization Census in Place to Support Future Growth

Initial Focus on China and India the Right Call

Driver of More Than 25% of Global Growth A Strong Foundation and a Playbook for Other High Growth Regions

East for East - Foundation for the New Global Mid-Segment

Serve Both the <$10K and the >$30K Middle Class

Integrated HGR Approach Contributing Over 50% of HON Growth

Growth Geographies
Global Energy and Resources Global Defense and Space Follow the Money

HON Well Positioned To Capitalize On HGR Expansion

High Growth Regions 12 Honeywell Investor Conference March 7, 2012

Financial Review
Dave Anderson z Senior Vice President and CFO

Todays Discussion
Honeywells Transformation 2003 - 2011
Portfolio Management, Emerging Region Growth Execution Of Key Initiatives, Significant Productivity

2011 Performance And 2012 Outlook

Delivered Top-Tier Performance In 2011

Prepared For Tougher 2012

Compelling Investment Opportunity

Consistency Of Strategy, Execution, Value Creation On Track To 2014 Sales, Margin And Cash Targets

Consistent Strategy, Focus On Outperformance

Financial Review 1 Honeywell Investor Conference March 7, 2012

Honeywells Transformation
Record Sales Growth, Margin, WCT, and FCF
Dividend $1.49/Share*

From Laggard . . . To Industry Leader

Improved During Economic Downturn

Allied Merger, GE Take-Over Attempt

Lost Money Two Consecutive Years

Building Performance Culture, Portfolio Management

Executing 10-Year TSR 135% Strategies, Built Financial Performance Better This Recession Track Record Preserved Industrial Base
Seed Planting Investments Sales Mix Outside U.S. 41% 54%

Leadership Team Upgrade ~70 Acq / ~50 Div Since 02

Dave Cote, CEO 5 Initiatives, One HON Culture

2000

2001-2002

2003-2004

2005-2008

2009

2010-2011

*Annualized Rate Based on 4Q 2011 Increase

Has Become A Top Performing Multi-Industrial

Financial Review 2 Honeywell Investor Conference March 7, 2012

2003 2011 Track Record

($B)

+7% CAGR

+50 bps/year

+12% CAGR

+7% CAGR

$36.5 $3.2 14.7%

$3.7

$22.1

10.6%

$2.2

$1.3

2003

2011

2003

2011

2003

2011

2003

2011

Sales

Segment Margin

Net Income (Proforma)*

FCF**

*Proforma Excludes Mark-to-Market Pension Adjustments; **FCF Prior to U.S. Cash Pension Contributions

Significant Growth All Key Metrics

Financial Review 3 Honeywell Investor Conference March 7, 2012

Organic Sales Growth

Sales Growth
($B)
10% CAGR 5% CAGR

World GDP
$36.5
3.9% 3.5%

Organic Growth
2004 2005 2006 7.8% 5.0% 6.2% 7.0% 1.8%

$30.0
4.2%

$22.1

4.1%
1.6% -2.0% 4.3% 3.0% -14.3%

2007
2008 2009 2010 2011

6.9% 8.3%
Record Organic Growth

2003

2009

2011

Record Organic Growth In 20102011

Financial Review 4 Honeywell Investor Conference March 7, 2012

Sales / Segment Profit Per Employee

Sales / Employee ($K)
28% Growth, 3% CAGR

Segment Profit / Employee ($K)

72% Growth, 6% CAGR

37 255 238 199

3% CAGR 3% CAGR

32
5% CAGR

9% CAGR

22

2002*
* Includes CPG

2009*

2011

2002*

2009*

2011

Simple (But Powerful) Measures Of Productivity

Financial Review 5 Honeywell Investor Conference March 7, 2012

OEF Productivity
Full Time Headcount (K)
132 ~135

Labor Cost (OEF) As % Of Sales

128 70%

30% 28% ~27%

63%

62%

37%

38%

30%

2008

2011 2012E Emerging Regions Developed Regions

2008

2011

2012E

Operating Performance Delivered Through OEF

Financial Review 6 Honeywell Investor Conference March 7, 2012

RD&E Investing In Growth

Credit Crisis / Recession
2,000

4.9%

4.9%

4.9%

4.8% 4.5% 4.6% 4.6% 4.6%

4.8%

4.9%

5.0%

1,800

4.5%

1,600

4.0%

1,400

3.5%

1,200

3.0%

1,000

2.5%

800

2.0%

600

1.5%

400

1.0%

200

0.5%

0.0%

2003

2004

2005

2006

2007
RD&E

2008
% of sales

2009

2010

2011

2012E

RD&E Census

RD&E Effectiveness = New Product Leverage

Financial Review 7 Honeywell Investor Conference March 7, 2012

Segment Margin Expansion

14.7% 13.6% 13.1% 12.2% 11.4% 10.6% 13.5%

13.9%
13.3%

2003

2004

2005

2006

2007

2008

2009

2010

2011

Note: All Years Exclude CPG

Accelerating Margin Expansion

Financial Review 8 Honeywell Investor Conference March 7, 2012

Investing In Growth Capex

Capital Spend 2012 Spend Profile

200.0%

14% Other 10% Maintenance 11% HS&E 17% Productivity

Major Growth Projects

1,200

137% 114%

150.0%

PMT
ACS PMT TS Aero

LGWP Refrigerants
New Product Introductions Photovoltaics HTT Slovakia Plant COMAC C-919 Development

1,000

100.0%

50.0% 800

0.0% 600 -50.0% 400 -100.0%

TS
48% Growth

FM Romania Plant
FM Chongqing, China Plant Hopewell Factory Expansion HLS Nantong Glove Factory

TS PMT ACS

200 -150.0%

-200.0%

2011
Capex

2012E
% of Depreciation

2012E

Funding High Return Growth Projects

Financial Review 9 Honeywell Investor Conference March 7, 2012

2012 Outlook

Financial Review 10

Honeywell Investor Conference March 7, 2012

2012 Financial Guidance Summary

Consolidated ($B except per share amounts) Sales Segment Profit Segment Margin EPS from Cont. Ops EPS from Disc. Ops EPS (1) Free Cash Flow (2)
(1)

2012 Financial Outlook $ 37.8 - 38.9 $ 5.7 - 5.9 15.0% - 15.3% $ 4.25 - $ 4.50 $ 4.25 - $ 4.50 ~$ 3.5

Growth 2012E vs. 2011 4% - 7% 6% - 11% 30 bps - 60 bps 12% - 19% 5% - 11% ~100% Conversion

1) Proforma, V% Compared to 2011 Proforma Excluding Any Mark-to-Market Pension Adjustments 2) Prior to Cash Contributions to Pension Plans and NARCO Trust in 2012

Low End
Lower Global GDP Growth Emerging Markets Moderate Further Unfavorable Mix ACS Products, PMT Inflation / Productivity Worse Stronger Dollar EUR < $1.30

High End
+ Stronger Global GDP Growth + Emerging Markets Overdrive + Favorable Mix Commercial AM, UOP + Inflation / Productivity Better + Weaker Dollar EUR > $1.30

Reaffirming 2012 Outlook

Financial Review 11 Honeywell Investor Conference March 7, 2012

HON Sales Geographic Growth

(% Of HON Sales)

Geographic Mix
100% ROW ~16% 100%

Organic Sales Growth

+6-7% +2-4% ex-D&S

+12%

ROW ~28%

Europe ~25% Europe ~26% +0-3% +10-12%

United States ~59%

United States ~46%

2003*
*Includes CPG

2012E

2011

2012E US

2011

2012E

2011

2012E

Europe

ROW

Emerging Market Growth Driving YOY Improvement

Financial Review 12 Honeywell Investor Conference March 7, 2012

2012 End Market Update

What We Are Seeing
Commercial Aero Strength Continues OE And AM Moderate Declines In D&S, Program Ramp-downs And Completions Industrial Strength Continues UOP, HPS, Industrial Safety Res / Non-Res Construction Still Soft; Emerging Regions Slower Growth Europe Short-cycle Macros Weak ESS, Turbo LV Production

What We Are Expecting

Commercial Aero OE Accelerates 2x Commercial Aftermarket Growth D&S Outlook Manageable Declines, Sales Stabilize In 2013

UOP, HPS, BSD Multi-Year Outlook Robust; Long Cycle BTB >1
Europe Macro Headwinds Continue, Easier Comps 2H12 China Growth Outlook Likely To Improve 2H12

Managing In Slower Growth Environment

Financial Review 13 Honeywell Investor Conference March 7, 2012

1Q12 Update
Sales Change
Aerospace
ACS PMT Transportation Honeywell

Comments
Commercial Strength Continues Defense Flat YoY, Down Sequentially
Short Cycle Growth Moderates in ESS* BSD*, Process Solutions Accelerate UOP Strength, Adv. Materials Moderates ~8-9% M&A Impact (Phenol Plant) EU LV Production Down ~(8%) New Launches, Diesel Penetration Offset Total ~$9.0 - $9.2B

7 - 9%
2 - 4% 12 - 15% ~ Flat 4 - 6%

* ESS: Energy, Safety and Security (ACS Products Less ADI), HPS: Honeywell Process Solutions, BSD: Building Solutions and Distribution (Includes ADI)

Reported EPS $0.96 - $0.98, Up 9-11% Continuing Ops EPS $0.96 - $0.98, Up 12-14%
Financial Review 14 Honeywell Investor Conference March 7, 2012

Valuation Perspective

Financial Review 15

Honeywell Investor Conference March 7, 2012

Valuation Metrics 5 Years Ago

2007 P/E Ratio
20 17 16

2007 FCF Multiple

23 19 37%

2006 ROIC

15
21% 16 14 15% Range Average HON Range Average HON Range Average HON 19%

HON Lowest

HON 2nd Lowest

HON 3rd Highest

2007 PEG Ratio

3.8

Dividend Yield
Compounded
2.1%

TSR*
Honeywell S&P 500 107% 24 8 8 43 74% 16 5 11 29

2.9%
1.5

2006 2005 2004

1.5%
1.0

0.9 Range Average HON

0.1% Range Average HON

2003

HON 2nd Lowest

HON 3rd Highest

Good Call Historically

Range, average calculated using eight multi-industry peers; Honeywell 2/23/2007 closing stock price: $47.69 *Total Shareholder Return

Good Performance And Undervalued = Upside

Honeywell Investor Conference March 7, 2012

Financial Review 16

5 Year Share Price Performance

140

TSR - Cum. Growth

HON 37%

S&P (-1%)

Peers 10%

120

HON 120

100

Peers 99 S&P 89

80

60

40 Jan-07

Jun-07

Dec-07

Jun-08

Dec-08

Jun-09

Dec-09

Jun-10

Dec-10

Jun-11

Dec-11

Indexed (January 1, 2007 to December 31, 2011)

Significantly Outperformed S&P And Peers

Financial Review 17 Honeywell Investor Conference March 7, 2012

Valuation Metrics 2 Years Ago

2010 P/E Ratio
20 16 17 16 13 11 20% 13 14 10 15% 32%

2010 FCF Multiple

2009 ROIC

5% Range Average HON Range Average HON Range Average HON

Pension Adjusted HON 14x

HON 2nd Lowest

HON 2nd Highest

2009 Margin Change

Range Average HON
Held Flat

Dividend Yield
Compounded 3.0% 3.0% 2.0% 2009 2008 2007 2006 0.2% 2005 2004

TSR*
Honeywell
94% 24 (45) 39 24 8 8 43

S&P 500
46% 26 (37) 5 16 5 11 29

(80) bps

(210) bps

Range

Average

HON

2003

HON Highest

HON Highest

Good Call Historically

Range, average calculated using eight multi-industry peers; Honeywell 2/18/2010 closing stock price: $39.85 *Total Shareholder Return

Good Performance And Undervalued = Upside

Financial Review 18 Honeywell Investor Conference March 7, 2012

2 Year Share Price Performance

200 Market Cap Growth Comparison HON 12/31/11 1/1/10 Increase $42.7B $30.7B $12.0B Peer Avg* $34.0B $30.7B $ 3.3B

175

150

HON 139
125

S&P 113 Peers 111

100

75

50 Jan-10

Apr-10

Jul-10

Oct-10

Dec-10

Apr-11

Jul-11

Sep-11

Dec-11

Indexed (January 1, 2010 to December 31, 2011) *Illustrative Market Cap Growth Based on HON 1/1/2010 Market Cap and Peer Group Avg Share Price Performance

$12B Increase In HON Market Cap

Financial Review 19 Honeywell Investor Conference March 7, 2012

Valuation Metrics Today

2012 P/E Ratio
16 14 13

2012 FCF Multiple

17 15

2011 ROIC
32%

12 16%

19%

12

10

4% Range Average HON

Range Average HON

Range

Average

HON

HON 3rd Lowest

HON 2nd Lowest

HON 3rd Highest

2012 PEG Ratio

1.40 1.20 0.93 0.98

Dividend Yield
3.5% 2.5% 2.2% TSR* 2011 2010 2009

TSR*
Honeywell
213% 5 39 24

S&P 500
87% 2 15 26

2008
2007 0.2% 2006 Average HON 2005 2004

(45)
39 24 8 8 43

(37)
5 16 5 11 29

Range

Average

HON

Range

Range, average calculated using eight multi-industry peers; Honeywell 2/29/2012 closing stock price: $59.57 *Total Shareholder Return 12/31/02 Through 2/29/2012

2003

HON Lowest

HON Above Average

HON Outperformed

Compelling Investment Opportunity

Financial Review 20 Honeywell Investor Conference March 7, 2012

HON Differentiators
Key Areas Aero Leverage Whats To Like
AM Strong, Complemented By Software Upgrades Winning on Growing Platforms Upside Potential Demand Drivers: Energy Infra., Generation, Efficiency Securing Major New Wins Across Portfolio Growth Outpacing Regional GDP Expanding E4E, E2W to Other High Growth Countries 2012 Incremental Savings ~$150M High IRR Projects, Long-Term Benefits

Long Cycle Backlog

High Growth Region Momentum

Restructuring Tailwind

HOS Acceleration

Bronze+ Site Deployment to Grow 50% in 2012 20-30% Average Conversion Cost Productivity Disciplined Process, Portfolio Transformation Evident More Integration Savings and Sales Upside

Acquisition Upside

Path To Industry Leading Performance

Financial Review 21 Honeywell Investor Conference March 7, 2012

Long-Term Outlook
($B)

Sales
09 -12: 8 9% CAGR
$41.0 - 45.0 $37.8 - 38.9 $36.5 $32.4 13.3%

Segment Margin
Long Term Goal: 300 - 500 bps
09 -12: 170 200 bps
15.0 -15.3% 13.9% 14.7% 16.0 -18.0%

Long Term Goal: 6 - 8% CAGR

$30.0

2009

2010

2011

2012

2013

2014

2009

2010

2011

2012

2013

2014

On Track To Achieve Long-Term Targets

Financial Review 22 Honeywell Investor Conference March 7, 2012

Honeywell Investment Thesis

Consistency Of Strategy And Execution
Robust New Product Pipeline Driving Organic Growth Aero OE / AM Momentum, Long-Cycle Demand Drivers

Accelerated Penetration Of High Growth Markets

China / India Remain Core To Growth E4E Strategy Working HGRs Driving >50% Of Honeywell Growth Through 2014

Path To 2014 Performance Targets

Focus On Growth Investments And Operating Discipline
Acceleration Of HOS, Restructuring Tailwind, M&A Integration Upside

Strong Cash Generation / Effective Deployment

Ongoing Working Capital Improvement, Disciplined Investments

Attractive Returns To Shareholders Dividends, Share Repurchases

Honeywell A Premier Multi-Industrial

Financial Review 23 Honeywell Investor Conference March 7, 2012

Summary
Dave Cote Chairman and CEO
Summary 0 Honeywell Investor Conference March 7, 2012

Summary
Building Off Of An Increasingly Robust Foundation - Strong Set Of Tools And Enablers Driving Benefits - Great Leadership In Place, Organized The Right Way - Accelerated Outperformance From HON During Last Two Years

Honeywell Will Continue To Evolve

- Great Positions In Good Industries, One Honeywell, 5 Initiatives - Execution Fundamentals Persist, Improvement Pace Continues - Stay Hungry, Smart, Disciplined and Flexible

Unparalleled Commitment To Shareholders Will Persist

- On Track To Meet Long Term Targets - Strong Cash Generation, Returning Value To Shareholders - Generating Strong Results Today, Seed Planting For Tomorrow

Honeywell A Top Tier Performer, Now And Future

Summary 1 Honeywell Investor Conference March 7, 2012

Appendix
Reconciliation Of Non-GAAP Measures To GAAP Measures
Summary 0 Honeywell Investor Conference March 7, 2012

Reconciliation of non-GAAP Measures to GAAP Measures

Appendix

Appendix 1

Honeywell Investor Conference March 7, 2012

Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margin
2003 (1)
$2.4 0.0 (0.2) (0.1) (0.2) (0.2) $1.7 $2.4 $22.1 10.6% $1.7 $22.1 7.9%

($B)

2004 (1)
$2.8 0.0 (0.7) 0.0 (0.1) (0.2) $1.8 $2.8 $24.5 11.4% $1.8 $24.5 7.3%

2005 (1)
$3.2 0.0 (0.4) 0.0 (0.0) (0.1) $2.7 $3.2 $26.5 12.2% $2.7 $26.5 10.2%

2006
$4.0 (0.1) (0.5) 0.0 0.0 (0.1) $3.3 $4.0 $30.3 13.1% $3.3 $30.3 10.9%

2007
$4.6 (0.1) (0.5) 0.1 0.0 (0.2) $3.9 $4.6 $33.5 13.6% $3.9 $33.5 11.6%

Segment Profit Stock Based Compensation (2) Repositioning and Other (2, 3) Pension Expense-ongoing (2) Pension Expense-mark to market OPEB Income (Expense) (2) Operating Income Segment Profit Sales Segment Profit Margin % Operating Income Sales Operating Income Margin %
(1 Sto ck B ased Co mpensatio n included in Segment P ro fit. )

(2)

(2) Included in co st o f pro ducts and services so ld and selling, general and administrative expenses. (3) Includes repo sitio ning, asbesto s and enviro nmental expenses.

Appendix 2

Honeywell Investor Conference March 7, 2012

Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margin
2008
$4.8 (0.1) (1.1) 0.1 (3.3) (0.1) $0.3 $4.8 $35.5 13.5% $0.3 $35.5 0.8%

($B)

2009
$4.0 (0.1) (0.5) (0.3) (0.7) 0.0 $2.4 $4.0 $30.0 13.3% $2.4 $30.0 7.9%

2010
$4.5 (0.2) (0.6) (0.2) (0.5) (0.0) $3.0 $4.5 $32.4 13.9% $3.0 $32.4 9.3%

2011
$5.4 (0.2) (0.8) (0.1) (1.8) 0.1 $2.6 $5.4 $36.5 14.7% $2.6 $36.5 7.0%

2012E
$5.7 - 5.9 ~($0.2) ~($0.4) ~($0.1) TBD ~($0.1) $4.9 - 5.1 $5.7 - 5.9 $37.8 - 38.9 15.0 - 15.3% $4.9 - 5.1 $37.8 - 38.9 13.0 - 13.3%

Segment Profit Stock Based Compensation (1) Repositioning and Other (1, 2) Pension Expense-ongoing (1) Pension Expense-mark to market OPEB Income (Expense) (1) Operating Income Segment Profit Sales Segment Profit Margin % Operating Income Sales Operating Income Margin %

(1)

(1 Included in co st o f pro ducts and services so ld and selling, general and administrative expenses. ) (2) Includes repo sitio ning, asbesto s, enviro nmental expenses and equity inco me (beginning 1 /2008). /1

Appendix 3

Honeywell Investor Conference March 7, 2012

Reconciliation of EPS to EPS, Excluding Mark-to-Market Pension Adjustment (Proforma)

2002 (1)
EPS, Previously Reported Effect of Pension Accounting Change EPS Mark-To-Market Pension Adjustment Asbestos Related Litigation Charges, net of tax Business Impairment Charges, net of tax Repositioning Charges, net of tax EPS, Excluding Mark-to Market Pension Adjustment (Proforma) ($0.31) (1.95) ($2.26) 1.87 1.23 0.69 0.48 $2.01

(1 Utilizes weighted average shares o utstanding and the effective tax rate fo r the perio d. M ark-to -market uses a tax rate o f 38% fo r 2002. )

Appendix 4

Honeywell Investor Conference March 7, 2012

Reconciliation of EPS to EPS, Excluding Mark-to-Market Pension Adjustment (Proforma)

2003 (1)
EPS Mark-To-Market Pension Adjustment EPS, Excluding Mark-to Market Pension Adjustment (Proforma) $1.39 0.12 $1.51

2011 (1)
$2.61 1.44 $4.05

(1 Utilizes weighted average shares o utstanding and the effective tax rate fo r the perio d. M ark-to -market uses a tax rate o f 33.5% and 36.9% fo r 2003 and 201 , respectively. ) 1

Appendix 5

Honeywell Investor Conference March 7, 2012

Reconciliation of Free Cash Flow, Prior to U.S. Pension Cash Contributions, to Cash Provided By Operating Activities and Calculation of Cash Flow Conversion
2002
$2.4 (0.7) $1.7 0.1 $1.8 ($1.8) 1.5 ($0.3) $2.4 (1.8) N/A $1.8 ($0.3) N/A

($B)

2003
$2.2 (0.7) $1.5 0.7 $2.2 $1.2 0.1 $1.3 $2.2 1.2 183% $2.2 $1.3 170%

2011
$2.8 (0.8) $2.0 1.7 $3.7 $2.1 1.1 $3.2 $2.8 2.1 137% $3.7 $3.2 115%

Cash Provided by Operating Activities Expenditures for Property, Plant and Equipment Free Cash Flow US Pension Cash Contributions Free Cash Flow, prior to U.S. Pension Cash Contributions Net Income Attributable to Honeywell Mark-to-Market pension adjustment, net of tax (1) Net Income Attributable to Honeywell Excluding Mark-to-Market Pension Adjustment (Proforma) Cash Provided by Operating Activities Net Income Attributable to Honeywell Operating Cash Flow Conversion % Free Cash Flow, prior to U.S. Pension Cash Contributions Net Income Attributable to Honeywell Excluding Mark-to-Market Pension Adjustment (Proforma) Free Cash Flow Conversion % (2)

(1 M ark-to -market uses a tax rate o f 38%, 33.5% and 36.9% fo r 2002, 2003 and 201 , respectively. ) 1 (2) Reflects Free Cash Flo w prio r to U.S. pensio n cash co ntributio ns and net inco me excluding the impact o f mark-to -market pensio n adjustment.

Appendix 6

Honeywell Investor Conference March 7, 2012

Discontinued Operations Reconciliation

($B)

2002
$22.3 1.0 $21.3

2003
$23.1 1.0 $22.1

2004
$25.6 1.1 $24.5

2005
$27.7 1.2 $26.5

2006
$31.4 1.1 $30.3

Sales - Total Honeywell Sales - CPG Sales - Continuing Operations

Appendix 7

Honeywell Investor Conference March 7, 2012

Valuation Metrics
Calculation Methodology Dividend Yield
= Annualized Dividend per Share (Last Announced) 2/29/2012 Closing Stock Price

FCF Multiple
= 2/29/2012 Market Capitalization at Closing 2011 FCF*

ROIC
= Net Income Before Interest** Net Investment (2-Point Average)
Net Income Before Interest = Net Income Attributable to Honeywell (or Peer) + After-Tax Interest Net Investment = Book Value of Equity + Total Debt

P/E Ratio (2012)

= 2/29/2012 Closing Stock Price 2012 Consensus Estimate EPS

PEG Ratio
= 2012 P/E Analysis for Consensus Five Year EPS Growth Rate

Eight Industry Peers COL, DHR, EMR, GE, ITW, MMM, TYC, UTX
*HON FCF Prior to U.S. Cash Pension Contributions; **HON Reflects Proforma Excluding Mark-to-Market Pension Adjustment
Appendix 8 Honeywell Investor Conference March 7, 2012