2. Forward Looking Statements
These materials contain certain statements that may be deemed
“forward-looking statements” within the meaning of Section 21E of the
Securities Exchange Act of 1934. All statements, other than statements
of historical fact, that address activities, events or developments that we
or our management intends, expects, projects, believes or anticipates will
or may occur in the future are forward-looking statements. Such
statements are based upon certain assumptions and assessments made
by our management in light of their experience and their perception of
historical trends, current conditions, expected future developments and
other factors they believe to be appropriate. The forward-looking
statements included in these materials are also subject to a number of
material risks and uncertainties, including but not limited to economic,
competitive, governmental, and technological factors affecting our
operations, markets, products, services and prices. Such forward-
looking statements are not guarantees of future performance, and actual
results, developments and business decisions may differ from those
envisaged by such forward-looking statements.
2 Honeywell India Investor Meeting – March 20, 2006
3. Honeywell Today
Automation & Control
Aerospace
36% 34%
15% 15%
Transportation
Specialty Materials
• 118,000 employees in nearly 100 countries
• A Fortune 75 company – $30 billion in sales in 2006
• One of 30 select companies in the DJIA
* Pie Chart calculated using 2006E Sales
3 Honeywell India Investor Meeting – March 20, 2006
4. India Overview
• Economy experiencing rapid growth
- Annual growth averaged 6% last 20 years
- GDP expected to grow 6-8%
- Growth in attractive commercial and industrial segments
- Recognition by government to foster investment and trade
• Honeywell tapping opportunity for domestic market and
procurement
- Commercial trade ~$500M
- Leverage engineering and back office resources
- Engaged in local manufacturing for domestic and exports
4 Honeywell India Investor Meeting – March 20, 2006
5. India Economy
GDP Expected To Grow 6-8% Over Foreseeable Future
GDP Expected To Grow 6-8% Over Foreseeable Future
6% annual growth (2005 - 2025)
Projected GDP*, $B
World • Consistent 6% in last two decades
16th 10th 8th 4th
Rank
• Demand driven and led by private sector
3000
Forecast (2006 -- 2010)
Forecast (2006 2010)
Likely to grow faster
Services: 8.0 -- 8.5%
Services: 8.0 8.5%
• Focus on investments in infrastructure
Industry: 6.5 -- 7.0%
Industry: 6.5 7.0%
and administrative reform
8%
Agriculture: 0 -- 2.5%
Agriculture: 0 2.5%
Inflation: 4.5 -- 5.5%
Inflation: 4.5 5.5% • Industrialization process is real
2100
- Industrial capacities peaked … new
1400
investment cycle
6%
8%
• Competition, tariff reductions, income
1150
650 velocity and financing major drivers
6%
6.3%
350
• New growth engines – tourism,
organized retail, aviation…
• Strong inflows from overseas
1994 2004 2014 2024
… Opportunities for all our businesses
… a Trillion by 2010 and $2-3 Trillion in 2 decades
India Economy Has Significant Momentum
Note: * Assuming 6%+ growth rate
Source: Goldman Sachs BRICS Report; CERG Advisory
5 Honeywell India Investor Meeting – March 20, 2006
6. Projected Infrastructure Spend
Area 2000 – 2004 2005 -2010 (P) Key Drivers
ENERGY
Power Gen $10B $32 - $40B Shortages, 6-10,000 MW
to be added annually
WATER
Waste Treatment, $25B $40 - 45B Poor quality of drinking water;
Supply, Irrigation shortages
TRANSPORT
Roads $7B $25 - 30B 14,000 Km highways program
Ports $3B $8 - 10B 23 New ports; modernization
of existing infrastructure
Airports $1B $8 - 10B Modernization, expansion
new airports
Railways $11B $30 - 40B Dedicated freight corridor
between key cities
TELECOM $12B $25B Low teledensity ~ 14%
$130-170B
Massive Infrastructure Growth
Source: BCG analysis; IMA Asia Forecasting; Planning Commission of India; CMIE
6 Honeywell India Investor Meeting – March 20, 2006
7. Honeywell India: 2006
Rapid progress since 2002
• From ~ $60M, 2002 to $500M, 2006E
2003 2004 2005
Q1 Q2 Q2 Q4 Q1 Q2 Q3 Q1 Q3 Q4
GBS Turbo Fire Tata- Security Novar UOP
HON
Total Trade $500M External Sales
SM
Services 29%
32%
Internal to ACS
External
Honeywell 46%
Sales
65%
Sourcing
TS
3%
6%
Aero
19%
HON Trade ~$500M In India
* Note – All numbers in US Dollars
7 Honeywell India Investor Meeting – March 20, 2006
8. Honeywell India: Footprint
Honeywell Life Safety
BPO, Corporate
Honeywell Automation India
Honeywell Turbo Technologies
Manufacturing
NOVAR India
Honeywell Technology Solutions Lab
Labs
Key Sales Offices,
Excluding 15 additional sales offices
8 Honeywell India Investor Meeting – March 20, 2006
9. Turbo Plant In Pune
HTT Production For Domestic And Exports
9 Honeywell India Investor Meeting – March 20, 2006
10. Honeywell Opportunities (2006 – 2010)
Automotive Consumer Durables
• Cumulative Demand • Cumulative Demand
– Cars: 9 - 10M – Refrigerators: 40 - 50M
– Diesel Cars: 2 - 3M – Room ACs: 15 - 20M
• Key Drivers
• Key Drivers
– Refrigerators: 14% household
– Rising incomes, retail credit,
ownership 2006, 20% by 2010
tougher emissions standards
– Availability of power,
Cars: 4% household
competitive pricing, retail credit,
ownership 2006, 9% by 2010
improving quality of life
Retail Credit: competition – Lifecycle cost of ownership,
and low interest rates health and potential regulatory
focus to drive demand for next
– Diesel 30% cheaper than
generation fluorocarbons,
gasoline
sensors
Increased Quality Of Life Driving Growth Opportunities
Source: Synovate Business Consulting; CMIE; NCAER; Literature Review
10 Honeywell India Investor Meeting – March 20, 2006
11. Honeywell Opportunities (2006 – 2010)
Refineries Power Generation
• Cumulative Demand • Cumulative Demand
– Expansion 50 - 60 MTPA – 30 - 40,000 MW capacity addition
– Modernization
• Key Drivers
• Key Drivers
– 7% shortage today, (12% peak
– Projected demand
time)
2005 demand 112 MT,
– Privatization of distribution and
growing to 150 MT in 2010
new electricity act increases
– New emission norms bank-ability of power projects
Capacity Limitations Create Opportunities
Source: Synovate Business Consulting; CMIE; NCAER; Literature Review
11 Honeywell India Investor Meeting – March 20, 2006
12. Honeywell Opportunities (2006 – 2010)
Aviation Real Estate
• Cumulative Demand • Cumulative Demand
– 400M+ sq ft premium real estate,
– 300+ new aircraft to be delivered
special economic zones
by 2010
• Key Drivers
• Key Drivers
– IT, BPO sector driving premium
– Deregulation of sector, private office space
airlines permitted to fly abroad 1.5-2.5M new jobs projected
(2006-2010) @ 80 sq ft per
– Emergence of latent demand,
employee
low cost carriers
Banking call centers, back
25% traffic growth Y-O-Y office, telecom offices,
manufacturing
– Organized retail to grow to 5% of
market by 2010 (from 2% in 2004)
25M sq ft of space under
development in top 14 cities
Strong Aircraft And Construction Cycles
Source: Synovate Business Consulting; CMIE; NCAER; Literature Review
12 Honeywell India Investor Meeting – March 20, 2006
13. Honeywell In India – Our Businesses
• AEROSPACE
- Leading supplier of safety avionics such as TCAS, EGPWS and APUs on commercial airliners …
serving all commercial airlines in India
- Licensor for TPE 331 engines and radars to HAL
- Supplier of Video Docking Guidance Systems at Chennai airport
• AUTOMATION & CONTROL SOLUTIONS
- Leaders in industrial process automation solutions … Over 50% of oil refineries in India use
Honeywell process solutions
- India’s largest building automation solutions provider
- Leader in Energy Efficiency offerings
• SPECIALTY MATERIALS
- Over 50% of oil in India is refined using UOP processes and know how
- Products such as fiber for armor applications, next gen fluorocarbons for air conditioning and
refrigeration applications, packaging films for food and pharma applications
• TRANSPORTATION SYSTEMS
- Turbo manufacturing unit commissioned in Pune in November 2005 … for domestic market as well
as exports
• Technology Centre, Engineering & Back Office Services
- HTSL at Bangalore and Madurai is one of the largest Tech centers in India
- Engineering services at Pune supports and leads major Petrochemical and other projects in the
Middle East, Africa and Europe
- Back office centers at Delhi and Bangalore…global customer support, employee services
13 Honeywell India Investor Meeting – March 20, 2006
14. Honeywell In India – Recent Highlights
• e-Retail Solutions for Indian Oil and Hindustan Petroleum … $48M
… Linking 1,300 retail outlets, 2,300 product tankers and 100+
product storage terminals
• Energy Performance Contract for the Rashtrapati Bhawan
(President’s estate)
• Building Management System for Hyderabad International Airport
• Export Orders From Europe and Thailand for Turbochargers
• Business Superbrand (’04-06)
• “10 Great Places to Work”… Business World
Leveraging Technology, Brand, People To Win
14 Honeywell India Investor Meeting – March 20, 2006
15. Honeywell Technology
Solutions Lab Overview
15 Honeywell India Investor Meeting – March 20, 2006
16. Globalization Drivers
Growing software
Increase of software
embedded product /
content in products
solutions market
Effective Globalized Availability of Engineering
workforce as a resource pool
differentiator
Opportunity for “Follow
Expansion in controls’
HTSL the sun” work & India as a
business… opportunity to
market
cross leverage
Higher Engineering cost Retain knowledge by
productivity leveraging young talent
Fulfilling Business Needs For Technology And Cost
16 Honeywell India Investor Meeting – March 20, 2006
17. HTSL Journey
Growth
Driven
• Founded in 1995
Cost
in Bangalore
Driven
• Cross-Company
2004-2006
Engineering &
2001-2003
Technology • Electronics &
1995-2000
Center Mechanical Eng’g
• Software Design &
Development
• Customers – • System Engineering
• Software Testing &
Honeywell SBUs Development Focus • Research & • Shanghai, Brno
worldwide technology
• Low Cost / Staff • Great Place to work (#4
- Aerospace Augmentation Driven • IT Support in 2005)
- Automation • Madurai
• Bangalore • CMMi L5 / PCMM L5
Control
• Beijing • 4,500 Employees
• CMM Level 4
Solutions
• CMM Level 5 • End to End
• Created a Unique
- Corporate
Engineering/Process
Culture • Product Roadmap
Functions (IT,
Solutions
HR, Finance) • 6 to 600 Employees
Cost + Growth Orientation = Competitive Edge
17 Honeywell India Investor Meeting – March 20, 2006
18. Operating Model
• Customer /
Manufacturing Proximity
• China Growth
• Value Engineering CoE
• Design to Cost
Capability
• Supply Chain
HTSL-Brno Capabilities
HON-SBUs
HTSL-China
• Customer
HTSL-India
Management
• Product Roadmap
• Program
Management
• System • Program Execution
Engineering &
• Technology / Engineering
Integration
Center of Excellence
Replicating Capability
• Sales & Marketing
Replicating Capability
• IT Expertise
and Leveraging Value
and Leveraging Value
• Best of the Breed
Commercial Technologies
• Partnership Ecosystem
Globalized Execution Capabilities
18 Honeywell India Investor Meeting – March 20, 2006
19. Airline Industry Trends
Mega-Trends
Mega-
Mega-Trends
• • Increasing Commercial Air
Increasing Commercial Air
Travel
Travel
Implications for Honeywell
Implications for Honeywell
• • New platforms will account
New platforms will account
for most OE sales in 10
for most OE sales in 10
years
years • • Capture content in new
Capture content in new
• • Airline profitability
Airline profitability platforms
platforms
challenged
challenged • • Improve relative cost
Improve relative cost Implications for HTSL
• • Capacity and competition Implications for HTSL
Capacity and competition position
position
increasing in Aftermarket
increasing in Aftermarket • • Rapid Technology
• • Grow aftermarket with Rapid Technology
MRO Grow aftermarket with
MRO Evaluation
customized offerings Evaluation
customized offerings
• • Demographic Shifts, Rise of
Demographic Shifts, Rise of • • Value/Sustenance
• • Technology Trends and Value/Sustenance
India & China Technology Trends and
India & China Engineering
Changes
Changes Software as aa Engineering
Software as
• • War on Terror
War on Terror Safety and
Safety and • • Increased engineering
value driver; Operating Increased engineering
value driver; Operating
Security
Security productivity
efficiency vs. more features productivity
efficiency vs. more features
• • Core platforms
• • New Platforms Core platforms
New Platforms
development
development
• • Next generation product
Next generation product
development
development
• • Deliver on local needs
Deliver on local needs
Well Positioned For Catering To The Changing
Landscape
19 Honeywell India Investor Meeting – March 20, 2006
20. Cabin Pressure Control Monitoring System
• • Developed aanew Product with aaquick turn
Developed new Product with quick turn
around design cycle
around design cycle
• • Multiple derivatives with high reuse & low
Multiple derivatives with high reuse & low
customisation
customisation
• • Addresses both
Addresses both
––Growth - - New market
Growth New market
––Productivity - - Reuse
Productivity Reuse
HTSL (2005)
• • Low cost ––Design to cost
Low cost Design to cost
• • All-electric vs electro pneumatic
All-electric vs electro pneumatic
• • Electronics / /software / /control laws
Electronics software control laws
developed and demonstrated as aaproof of
developed and demonstrated as proof of
concept to gain customer interest
concept to gain customer interest
(2004)
• •Honeywell has aastrong platform and
Honeywell has strong platform and
presence, but opportunity exists in
presence, but opportunity exists in
modernizing of technology, weight and cost
modernizing of technology, weight and cost
(Before 2004)
Improved Technology At Lower Cost
20 Honeywell India Investor Meeting – March 20, 2006
21. Supporting Advanced Technology Development
1
L g en d :
e
- Se n so rs
- W ire e s s AP
l
- W ire e s s Ca m era
l
Wireless
Communication
2
1. In cabin wireless
1. In cabin wireless
2. Arc fault detection
2. Arc fault detection
3. Perception sensing and obstacle avoidance
More Electric A/C 3. Perception sensing and obstacle avoidance
4. Diagnostics algorithms
4. Diagnostics algorithms
3
5. Automated software verification
5. Automated software verification
4
Vehicle Health
5
Autonomous Navigation
Dependable Software
Enabling Technology Driven Growth Opportunities
21 Honeywell India Investor Meeting – March 20, 2006
22. Automation And Control – Industry Trends
Mega-trends
Mega-
Mega-trends
• • Aging population
Aging population
Implications for Honeywell
Implications for Honeywell
• • Energy efficiency
Energy efficiency
• • Wireless & other life style
Wireless & other life style
changes
changes
• • Lower total installed cost
• • Air / /emissions regulations Lower total installed cost
Air emissions regulations
(Kyoto) • • Emerging business
(Kyoto) Emerging business
opportunities
opportunities Industrial
• • Homeland security Industrial Implications for HTSL
Homeland security Implications for HTSL
Wireless, Sensors, Comfort,
Wireless, Sensors, Comfort,
• • Growth in Asia
Growth in Asia Energy Efficiency, • • Upgrading products / /new
Energy Efficiency, Upgrading products new
Emissions reduction and products
Emissions reduction and products
trading • • Customize products for
trading Customize products for
• • Industrial security/safety, emerging markets
Industrial security/safety, emerging markets
critical infrastructure • • Accelerate new technology
critical infrastructure Accelerate new technology
security, video / /access / / development
security, video access development
perimeter
perimeter • • Advanced energy efficiency
Advanced energy efficiency
technology and solutions
technology and solutions
• • Innovate new offerings in
Innovate new offerings in
emerging security,
emerging security,
optimization, etc.
optimization, etc.
Emerging Market Changes Provide Critical Enabler
For Growth
22 Honeywell India Investor Meeting – March 20, 2006
23. Redefining Competitive Dynamics
HTSL
Customer consortium
+
Standards Body
+
Before After
System Design
• >70% smart field devices in • Honeywell recognized as
the market were HART- leader in HART
+
based • Portfolio with complete range
• Entry barriers through of HART products
technology existed • Effective Asset Management
Product/ Application
/ Field Solutions
Development
+
Product Management
Developing Solutions Quickly To Compete
23 Honeywell India Investor Meeting – March 20, 2006
24. Focus On Critical Technology Platforms
1
Industrial Wireless
1. Industrial RF technology
1. Industrial RF technology
2 2. Video analytics
2. Video analytics
3. Planning / /scheduling applications
3. Planning scheduling applications
4. Plant wide energy solutions
4. Plant wide energy solutions
3
Video Security
5. Usability
5. Usability
Plant Optimization
4
Energy Solutions
5
Software Usability
Core Technology Development In Key Areas
24 Honeywell India Investor Meeting – March 20, 2006
25. Building Platforms That Can Be Used Across
Businesses
Aerospace Automation & Control Solutions
• Replace wired avionics with wireless • RF in harsh environment
• UAVs for commercial applications • Sensor networks for wide area
surveillance
Wireless Platform
• Dependable wireless
• Sensor networks
• Miniature systems
• Power optimization
Value Creation Through Cross SBU Tech
Development
25 Honeywell India Investor Meeting – March 20, 2006
26. Cycle Of Execution And Improvement … Source
Of Competitive Advantage
50+ Patents
Global Exchange
Programs Strong Culture of
Leadership innovation
Product
Customer Roadmaps
services
Proximity to
Tight linkage
offshoring
with SBUs
models
Technology Regional
Leverage NPI
Emerging
Local
market
ecosystem
presence
Strong HR Cross SBU
practices leverage
PCMM-Level 5 Platforms
Reuse
Process Customer
excellence focus
SEI-CMM-L5 Location
DFSS & HOS COE
Culture Of Innovation And Cost Efficiency
26 Honeywell India Investor Meeting – March 20, 2006
27. Unique People Practices And Culture
Building Competencies Motivating & Managing
Performance
• Pervasive & flexible Competency • Career profiling
framework • Talent-at-risk engagement
• Quest for Innovation • Unique reward and recognition programs
• Communities of Practice
No. 4
Great Places
To Work
Building Workgroups &
Shaping the Work Force
Culture
• Multilevel employee engagement • Cross industry talent
• Best Practice sharing & Technology • Tier 2 cities
Forums • Global exchange programs
Performance And Customer Driven People Culture
27 Honeywell India Investor Meeting – March 20, 2006
28. A Systematic Mechanism To Replicate Success
Replicate in new
locations
“HTSL Way” Platform
Business &
Process People
Operating
Maturity Capabilities
Model
Customer Organizational
Value Focus
Experience Mechanisms
Replicate through
new offshore based
services
Multiplying The Competitive Advantage
28 Honeywell India Investor Meeting – March 20, 2006
29. HTSL Summary
• Cost and Growth-driven
• Process excellence Building
differentiable
Listen to the
solutions
• Culture of cost take-out customers
…profitable,
sustainable
• Source of Engineering
competitive advantage HTSL Value
Creation
• Technology engine Align,
influence & fit
Serve the
• Positioned to tap emerging well with the
customers
product & Biz
well
strategy of
markets the SBUs
Built To Deliver Value
29 Honeywell India Investor Meeting – March 20, 2006
