Honeywell International : J.P. Morgan Industrials Conference Presentation

J.P. MORGAN

INDUSTRIALS CONFERENCE MARCH 12, 2024

GREG LEWIS

SENIOR VICE PRESIDENT AND

CHIEF FINANCIAL OFFICER

FORWARD LOOKING STATEMENTS

We describe many of the trends and other factors that drive our business and future results in this presentation. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes or anticipates will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments and other relevant factors, many of which are difficult to predict and outside of our control. They are not guarantees of future performance, and actual results, developments and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as lower GDP growth or recession, capital markets volatility, inflation, and certain regional conflicts, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this presentation can or will be achieved. These forward-looking statements should be considered in light of the information included in this presentation, our Form 10-K and other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.

NON-GAAP FINANCIAL MEASURES

This presentation contains financial measures presented on a non-GAAP basis. Honeywell's non-GAAP financial measures used in this presentation are as follows: Segment profit, on an overall Honeywell basis; Segment profit margin, on an overall Honeywell basis; Organic sales percentage; Free cash flow; Adjusted free cash flow; Free cash flow excluding impact of settlements; Free cash flow margin excluding impact of settlements; Adjusted free cash flow margin; Adjusted earnings per share; Adjusted earnings per share excluding pension headwind; Adjusted income before taxes; Adjusted income tax expense; EBITDA; and Adjusted effective tax rate, if and as noted in the presentation. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Refer to the Appendix attached to this presentation for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.

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KEY MESSAGES

• Portfolio actions unfolding; capital deployment to accelerate in 2024
• Aligned to compelling megatrends, all underpinned by digitalization, enabling next phase of transformation
• Continued strength in long-cycle end markets and backlog provides confidence in growth

Strategy Focused on Accelerating Value Creation

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PORTFOLIO STRATEGY UNFOLDING

CARRIER ACCESS

SOLUTIONS ACQUISITION

$4.95B ~13x ~$700M

Purchase	2023E	2023E
Price	EBITDA1	Sales

• Offerings: leading provider of cloud-based digital access and asset safety solutions
• Strategic Rationale:
• • Creating scale in a higher growth, attractive end market
  • Enhancing software exposure
  • Increasing high margin product mix

Creating an access-focused, margin accretive, +$1B player

QUANTINUUM CAPITAL RAISE:

$5B VALUATION

• First equity fundraise closed, securing $300M of capital at a pre-moneyvaluation of $5B
• Anchored by strategic partner JP Morgan Chase with additional participation from Mitsui & Co., Amgen, and Honeywell
• Total capital injection of $625M as prior investors exchange convertibles into preferred stock
• Committed to a path to monetization within the next ~18 months

ACCELERATING

CAPITAL DEPLOYMENT

2024
2023						$8B
2022						$8B
B 2021						$8B
2020						$7B
2019						$8B
2018						$8B
2017						$6B
2016						$8B
'11-'15 Avg						$5B
		Capex			Dividend		Share Repurchases		M&A

On track to surpass commitment to deploy $25B+ of capital through 2025

*Transaction is expected to close by the end of the third quarter of 2024, details available here. 1. We define EBITDA as adjusted income before taxes adjusted for interest and other financial charges, interest income, and depreciation and amortization.

Executing on M&A Playbook; Accelerating Capital Deployment

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LONG-TERM FINANCIAL GROWTH ALGORITHM

MEGATRENDS	ORGANIC	SEGMENT
Automation	SALES	MARGIN
GROWTH	EXPANSION
	4% - 7%	40 - 60 bps

The Future of Aviation	Segment Profit and Adj. EPS Growth
	6% - 10%

Energy Transition

SHARE

REPURCHASES

Minimum 1% per

year

Adj. EPS

Growth

1% - 2%

M&A

Accretive bolt-on

acquisitions

Adj. EPS

Growth

1% - 2%

ADJUSTED EPS

GROWTH

8% - 12%

Current HON

Dividend Yield

~2%

Compelling Framework to Compound Growth

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LONG-TERM FINANCIAL PROGRESSION

Long-

Term

Target

2024 Guidance

2023 Results

'17 - '22

Average5

'14 - '16 Average

ORGANIC GROWTH

4% - 7%

4% - 6%

4%

5%

1%

GROSS MARGIN

>40%

37.3%1

37.3%

36.4%

34.7%

SEGMENT MARGIN

25%+

23.0% - 23.3%

22.7%

20.5%

17.9%

ADJ. FCF MARGIN

Mid-

Teens+

~15%

14%3

15%

11%

ADJ. EPS GROWTH

8% - 12%

7% - 10%2

11%4

9%

10%

1. Represents gross margin from the last twelve months. Historical gross margin excludes company-funded R&D, in line with the reporting change made in 1Q23. 2. Adjusted EPS V% guidance excludes 2023 Russian-related charges, 2023 net expense related to the NARCO Buyout and HWI Sale, and 2023 adjustment to estimated future Bendix liability. 3. Excluding impact of settlements related to the NARCO Buyout, HWI Sale, and UOP Matters. 4. Adjusted EPS excluding pension headwind excludes the impact of the year-over-year decrease in pension ongoing and other postretirement income 5. Excluding 2020.

Integrated Operating Company Delivering Value

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1Q AND FY 2024 OUTLOOK

1Q GUIDANCE

SALES	SEGMENT MARGIN
$8.9B - $9.2B	21.9% - 22.2%
Flat - Up 3% Organically	Down 10 - Up 20 bps

ADJUSTED EPS	NET BELOW THE
LINE IMPACT
$2.12 - $2.22	($140M - $190M)
Up 2% - 7%	Effective tax rate	Share count
	~22%	~657M

FY GUIDANCE

SALES	SEGMENT MARGIN
$38.1B - $38.9B	23.0% - 23.3%
Up 4% - 6% Organically	Up 30 - 60 bps

ADJUSTED EPS	FREE CASH FLOW
$9.80 - $10.10	$5.6B - $6.0B
Up 6% - 13% excluding impact
Up 7% - 10%
of prior year settlements

Net below the line impact is the difference between segment profit and income before tax. Impact includes interest and other financial charges, stock compensation expense, pension ongoing income, other postretirement income, and repositioning and other charges. Adjusted EPS V% guidance excludes 1Q23 Russian-related charges, 1Q23 net expense related to the NARCO Buyout and HWI Sale, 2023 Russian-related charges, 2023 net expense related to the NARCO Buyout and HWI Sale, and 2023 adjustment to estimated future Bendix liability.

2024 Outlook In Line with Long-Term Framework

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GREG LEWIS

SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

Greg Lewis has been Senior Vice President and Chief Financial Officer of Honeywell since 2018. In this role, Greg is responsible for leading global Finance, Treasury, Tax, Audit, Business Analysis and Planning, Controllership, Honeywell Accelerator, Finance Transformation, Global Real Estate, and Investor Relations.

While leading Enterprise Information Management and then as CFO, Greg has played a pivotal role in Honeywell's "great integration" as the company embarked on a substantial transformation to simplify its decision-making and drive greater operational excellence. Among these endeavors, Greg has led Honeywell in its digital transformation and data governance journey, establishing a robust data operating model and building a culture with data at the forefront for strategic decision making. In this time, Greg has also provided critical crisis management leadership in Honeywell's response to the COVID-19 pandemic and related economic environment.

Greg joined Honeywell in 2006, and since then, has held a series of finance leadership roles. Prior to becoming CFO, he was Vice President of Corporate Finance, where he led Treasury, Tax, Audit, Business Analysis and Planning, Investor Relations, M&A, Real Estate, Pension, Finance Operations, and Enterprise Information Management (EIM).

Upon joining Honeywell, he first served as CFO of the former Specialty Products unit within Performance Materials and Technologies (PMT). Subsequently, he served as Vice President of Business Analysis and Planning (BAP) for Honeywell, CFO for Honeywell Process Solutions (HPS) and then CFO for the former Automation and Control Solutions (ACS) segment.

Greg has a broad background in financial leadership across multiple industries. He began his career at Kraft Foods in 1991 and went onto leadership roles at the Stanley Works and Tyco International before joining Honeywell.

Greg holds a master's degree in business administration from Fordham University and a bachelor's degree in finance from the University of Connecticut. He is also Six Sigma Green Belt Certified.

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NON-GAAP FINANCIAL MEASURES

The following information provides definitions and reconciliations of certain non-GAAP financial measures presented in this presentation to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP).

Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These measures should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Certain measures presented on a non-GAAP basis represent the impact of adjusting items net of tax. The tax-effect for adjusting items is determined individually and on a case-by-case basis. Other companies may calculate these non-GAAP measures differently, limiting the usefulness of these measures for comparative purposes.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they exclude significant expenses and income that are required by GAAP to be recognized in the consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non- GAAP financial measures. Investors are urged to review the reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures and not to rely on any single financial measure to evaluate Honeywell's business.

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