Honeywell International : Leadership Webcast Series – Featuring Vimal Kapur and Greg Lewis

LEADERSHIP WEBCAST SERIES

DECEMBER 1, 2023

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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; Free cash flow excluding impact of

settlements; Free cash flow margin; Adjusted earnings per share; and Adjusted earnings per share excluding pension headwind, 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.

Honeywell Leadership Webcast Series - December 1, 2023

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KEY MESSAGES

1

SIMPLIFY

• Align with three megatrends
• • Aviation
  • Automation
  • Energy Transition

2

GROW

• New products as engine of organic growth; new innovation playbook
• Commercial excellence focus

3

MANAGE PORTFOLIO

•	Enhance M&A capability
• A combo of bolt-on deals and
	pruning to align to three
	megatrends
•	Stay disciplined

4

ACCELERATOR

• Version 3.0 of Honeywell operating system
• Foundation for profitable growth for existing business / M&A

• All underpinned by digitalization

COMPELLING LONG-TERM FINANCIAL FRAMEWORK

4% - 7%	40 - 60 bps	Mid-Teens+	$25B+
Organic Sales Growth	Segment Margin Expansion	Free Cash Flow Margin	2023 - 2025 Capital Deployment

Strong Foundation in Place, Poised for Accelerated Growth

Honeywell Leadership Webcast Series - December 1, 2023

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PROGRESS ON SIMPLIFICATION PRIORITY:

SEGMENT REALIGNMENT

CURRENT STRUCTURE

Performance
Materials and	Aerospace
Technologies 30%
33%
SALES
	MIX
20%	17%
Safety and	Honeywell
Productivity	Building
Solutions	Technologies

NEW STRUCTURE AS OF 1Q24

Energy and
Sustainability	Aerospace
Solutions	17%	Technologies
	33%
	SALES
	MIX
	33%
Industrial	17%	Building
Automation		Automation

• Aligns business structure with distinct automation, future of aviation, and energy transition megatrends, all underpinned by digitalization
• Positions Honeywell to better address the world's toughest challenges
• Enables a simpler, stronger strategic focus and clearly defines Honeywell's value proposition
• Creates a more focused framework for M&A; bolt-on acquisitions and select dispositions to align to themes

Based on 2022 revenue. New structure percentages represent 2022 revenue, realigned to new reporting structure effective beginning first quarter 2024.

New Structure Enhances Organic and Inorganic Growth Strategies

Honeywell Leadership Webcast Series - December 1, 2023

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Honeywell Leadership Webcast Series - December 1, 2023

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2023 UPDATE

	4Q GUIDANCE
SALES	SEGMENT MARGIN
$9.6B - $9.9B	22.9% - 23.2%
Up 3% - 7% Organically	Flat - Up 30 bps

ADJUSTED EPS	NET BELOW THE LINE IMPACT
$2.53 - $2.63	($105M - $155M)
Flat - Up 4%	EFFECTIVE TAX RATE
$2.67 - $2.77 Excluding Pension	~19%
Headwind or up 6% - 10%	SHARE COUNT
	~664M

FY GUIDANCE

SALES	SEGMENT MARGIN
$36.8B - $37.1B	22.5% - 22.6%
Up 4% - 5% Organically	Up 80 - 90 bps

ADJUSTED EPS	FREE CASH FLOW
$9.10 - $9.20	$3.9B - $4.3B
Up 4% - 5%	$5.1B - $5.5B Excluding
$9.65 - $9.75 Excluding Pension	Impact of Settlements
Headwind or up 10% - 11%

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 guidance and adjusted EPS V% guidance excludes 2Q23 net expense related to the NARCO Buyout and HWI Sale, 2Q23 and 1Q23 Russian-related charges, 4Q22 benefit related to UOP Matters, 4Q22 Russian-related charges, 4Q22 gain on sale of Russian entities, 4Q22 net expense related to the NARCO Buyout and HWI sale, 2022 expense related to UOP Matters, 2022 Russian-related charges, 2022 gain on sale of Russian entities, and 2022 Net expense related to the NARCO Buyout and HWI Sale. Adjusted EPS excluding pension headwind guidance and adjusted EPS V% excluding pension headwind guidance excludes the items previously described and the impact of the expected year-over-year decrease in pension ongoing and other postretirement income.

Fourth Quarter on Track; Confident in Full-Year Outlook

Honeywell Leadership Webcast Series - December 1, 2023

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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.

Honeywell Leadership Webcast Series - December 1, 2023

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DEFINITION OF ORGANIC SALES % CHANGE

We define organic sales percent as the year-over-year change in reported sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

A quantitative reconciliation of reported sales percent change to organic sales percent change has not been provided for forward-looking measures of organic sales percent change because management cannot reliably predict or estimate, without unreasonable effort, the fluctuations in global currency markets that impact foreign currency translation, nor is it reasonable for management to predict the timing, occurrence and impact of acquisition and divestiture transactions, all of which could significantly impact our reported sales percent change.

Honeywell Leadership Webcast Series - December 1, 2023

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RECONCILIATION OF OPERATING INCOME TO SEGMENT PROFIT AND CALCULATION OF OPERATING INCOME AND SEGMENT PROFIT MARGINS

($M)		4Q22			2022
Operating income	$	1,813	$	6,427
Stock compensation expense (1)		25			188
Repositioning, Other (2,3)		233			942
Pension and other postretirement service costs (3)		33			132
Segment profit	$	2,104	$	7,689
Operating income	$	1,813	$	6,427
÷ Net sales	$	9,186	$	35,466
Operating income margin %		19.7 %			18.1 %
Segment profit	$	2,104	$	7,689
÷ Net sales	$	9,186	$	35,466
Segment profit margin %		22.9 %			21.7 %

1. Included in Selling, general and administrative expenses.
2. Includes repositioning, asbestos, environmental expenses, equity income adjustment, and other charges. For the three months ended December 31, 2022, other charges include an expense of $7 million primarily related to a loss on the sale of inventory due to the initial suspension and wind down of our business and operations in Russia. For the twelve months ended December 31, 2022, other charges include an expense of $250 million related to reserves against outstanding accounts receivables, contract assets, and inventory, as well as the write-down of other assets and employee severance related to the initial suspension and wind down of our businesses and operations in Russia. For the three months ended December 31, 2022 and twelve months ended December 31, 2022, other charges include $9 million and $41 million, respectively, of incremental long-term contract labor cost inefficiencies due to severe supply chain disruptions (attributable to the COVID-19 pandemic) relating to the warehouse automation business within the Safety and Productivity Solutions segment. These costs include incurred amounts and provisions for anticipated losses recognized when total estimated costs at completion for certain of the business' long-term contracts exceeded total estimated revenue. These certain costs represent unproductive labor costs due to unexpected supplier delays and the resulting downstream installation issues, demobilization and remobilization of contract workers, and resolution of contractor disputes.
3. Included in Cost of products and services sold and Selling, general and administrative expenses.

We define segment profit, on an overall Honeywell basis, as operating income, excluding stock compensation expense, pension and other postretirement service costs, and repositioning and other charges. We define segment profit margin, on an overall Honeywell basis, as segment profit divided by net sales. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

A quantitative reconciliation of operating income to segment profit, on an overall Honeywell basis, has not been provided for all forward-looking measures of segment profit and segment profit margin included herein. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from segment profit, particularly pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. The information that is unavailable to provide a quantitative reconciliation could have a significant impact on our reported financial results. To the extent quantitative information becomes available without unreasonable effort in the future, and closer to the period to which the forward-looking measures pertain, a reconciliation of segment profit to operating income will be included within future filings.

Honeywell Leadership Webcast Series - December 1, 2023

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RECONCILIATION OF EPS TO ADJUSTED EPS AND ADJUSTED EPS EXCLUDING PENSION HEADWIND

		4Q22			FY2022		4Q23E		2023E
Earnings per share of common stock - diluted (1)	$	1.51	$	7.27	$2.53 - $2.63	$9.09 - $9.19
Pension mark-to-market expense (2)		0.65			0.64		No Forecast		No Forecast
Expense related to UOP Matters (3)		(0.01)			0.07		-		-
Russian-related charges (4)		0.01			0.43		-		-
Gain on sale of Russian entities (5)		(0.02)			(0.03)		-		-
Net expense related to the NARCO Buyout and HWI Sale (6)		0.38			0.38		-		0.01
Adjusted earnings per share of common stock - diluted	$	2.52		$	8.76		$2.53 - $2.63		$9.10 - $9.20
Pension headwind (7)		-			-		~0.14		~0.55
Adjusted earnings per share of common stock excluding Pension headwind - diluted	$	2.52	$	8.76	$2.67 - $2.77	$9.65 - $9.75

1. For the three months ended December 31, 2022, adjusted earnings per share utilizes weighted average shares of approximately 676.5 million. For the twelve months ended December 31, 2022, adjusted earnings per share utilizes weighted average shares of approximately 683.1 million. For the three months ended December 31, 2023, and twelve months ended December 31, 2023, expected earnings per share utilizes weighted average shares of approximately 664 million and 669 million, respectively.
2. Pension mark-to-market expense uses a blended tax rate of 16%, net of tax benefit of $83 million, for 2022.
3. For the three months and twelve months ended December 31, 2022, the adjustments were a benefit of $5 million and an expense of $45 million, respectively, without tax benefit, due to an expense related to UOP matters.
4. For the twelve months ended December 31, 2023, the adjustment was $1 million, without tax expense. For the three months ended December 31, 2022, the adjustment was $4 million, without tax benefit, to exclude expenses primarily related to a loss on the sale of inventory offset by favorable foreign exchange revaluation on an intercompany loan with a Russian affiliate related to the initial suspension and wind down of our business and operations in Russia. For the twelve months ended December 31, 2022, the adjustment was $297 million, without tax benefit, to exclude charges and the accrual of reserves related to outstanding accounts receivable, contract assets, impairment of intangible assets, foreign exchange revaluation, inventory reserves, the write-down of other assets, impairment of property, plant and equipment, employee severance, and called guarantees related to the initial suspension and wind down of our businesses and operations in Russia.
5. For the three months ended December 31, 2022, the adjustment was $12 million, without tax expense, due to the gain on sale of Russian entities. For the twelve months ended December 31, 2022, the adjustment was $22 million, without tax expense, due to the gain on sale of Russian entities.
6. For the twelve months ended December 31, 2023, the adjustment was $8 million, net of tax benefit of $3 million, due to net expense related to the NARCO Buyout and HWI Sale. For the three and twelve months ended December 31, 2022, the adjustment was $260 million, net of tax benefit of $82 million, due to the net expense related to the NARCO Buyout and HWI Sale.
7. For the three and twelve months ended December 31, 2023, the adjustment is the forecasted decline of approximately $95 million and $370 million, respectively, of pension ongoing and other postretirement income between the comparative periods in 2022 and 2023, net of estimated tax expense of approximately $20 million and $100 million, respectively.

We define adjusted earnings per share as diluted earnings per share adjusted to exclude various charges as listed above. We define adjusted earnings per share excluding pension headwind as adjusted earnings per share adjusted for an actual or forecasted decline of pension ongoing and other postretirement income between the comparative periods in 2022 and 2023. We believe adjusted earnings per share and adjusted earnings per share excluding pension headwind are measures that are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. For forward-looking information, management cannot reliably predict or estimate, without unreasonable effort, the pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets. We therefore do not include an estimate for the pension mark-to-market expense. Based on economic and industry conditions, future developments, and other relevant factors, these assumptions are subject to change.

Honeywell Leadership Webcast Series - December 1, 2023

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