Sensing and Control Overview April 2013
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1 Sensing and Control Overview April 2013
2 Honeywell Overview Honeywell is a Fortune 100 company that invents and manufactures technologies to address challenges linked to global macrotrends such as energy, safety and security More than 50% of Honeywell s portfolio offers energy efficiency benefits Employs approximately 130,000 people worldwide, including more than 19,000 engineers and scientists Research, development and engineering is Honeywell s growth engine More than 30,000 patents or patents pending worldwide Recognitions: Fortune 500 Company (#78) Fortune 2011 North American Top Company for Leaders Award Fortune Best Places to Launch a Career BusinessWeek World s Most Ethical Companies Ethisphere Institute Blue Ribbon Company Fortune 2
3 Honeywell: Great Positions in Good Industries Aviation & Defense Automotive & Transportation Buildings, Construction & Maintenance Chemicals, Specialty Materials & Fertilizers Consumer & Home Efficiency, Energy & Utilities Fire Protection & First Responder Healthcare & Medical Industrial Process Control Manufacturing Oil & Gas, Refining, Petrochemicals & Biofuels 3 Safety & Security Scanning & Mobile Productivity Energy, Safety & Security
4 Honeywell s Businesses Aerospace Innovative safety products that drive the modernization of air traffic management, revolutionize combat technology, and improve operational efficiencies. Automation and Control Solutions (ACS) Expertise that captures more and better data faster, across a wireless landscape; improves productivity, safety, and security. Sensing and Control is one of ACS s businesses. Performance Materials and Technologies A global leader in providing customers with high-performance materials in a broad set of markets and products. Transportation Systems Fuel-saving, emission-reducing turbochargers, and safety-enhancing brake materials technologies to enhance the performance, safety and efficiency of passenger and commercial vehicles worldwide. Making Our World More Safe And Secure, More Comfortable And Energy Efficient, More Innovative And Productive 4
5 Honeywell s 2012 Performance 2012 Sales: $37.7B Transportation Systems $3.6B (10%) Performance Materials and Technologies $6.2B (16%) Aerospace $12B (32%) Automation and Control Solutions $15.9B (42%) Diverse Businesses, Technologies And Products 5
6 Automation Control Solutions 2012 Performance Building Solutions 18% 17% Environmental and Combustion Controls Solutions Process Solutions 19% ACS Sales $15.9B % Security Group Scanning and Mobility 5% 21% Life Safety 4% Sensing and Control Products Creating A Growth Culture, Working Together 6
7 About Honeywell Sensing and Control Aerospace/Defense Industrial Medical Transportation Test & Measurement With an 80-year legacy, Honeywell Sensing and Control is a leading global supplier of custom-engineered sensor and switch solutions that offer superior precision, repeatability, and durability for a variety of original equipment manufacturing applications Markets include Aerospace & Defense, Industrial, Medical, Transportation, and Test & Measurement Extensive high performance and applications design expertise Global sourcing and manufacturing capabilities Superior technical and customer support Broad Range of Technologies, Innovation, Industries Served 7
8 Sensing and Control Overview $4,300 Employees 50,000 Products Broad Portfolio Applications Expertise Custom Packaging Global Capabilities Strong Brands High Quality & Reliability Electronic Sensors Electromechanical Devices Test & Measurement Devices Pressure Thermal Speed & Position HOMES Switches BUILDINGS Controls & Monitoring Precision Aerospace Products Pressure Load Torque Instrumentation Strong Portfolio And Technical Capabilities 8
9 Sensing and Control Leadership Tony Sugalski President Business Leaders Brad Kautzer VP/GM Electromechanical Lionel Caillat VP/GM Electronic Sensing Brad Kautzer VP/GM Test & Measurement (acting) Remi Volpe VP/GM EMEA Function Leaders Michael Lee VP/GM Asia Pacific Pat Quilty VP Sales Larry Goldstein VP Engineering & CTO Dean Anderson VP ISC and Quality Sherri Benzelock Chief Financial Officer Brian Blom VP Human Resources Chris McCullough VP General Counsel Mark Hamel Communications Leader Ashis Bhattacharya VP Marketing & Strategy Roland van Luik VP IT and Chief Information Officer 9
10 Revenue Distribution Segment Geography Channel Aerospace & Defense 20% Medical 12% Industrial 39% Transport 23% T&M 6% Americas 59% EMEA 21% Asia Pacific 20% Ads 46% Direct 30% Reps 24% Focus on Medical, Aerospace, Transportation, Industrial and T&M Grow in all geographies, but at a faster rate in A-P & EMEA Align channel to best serve the customer Focused Growth In Key Segments Globally; Channel Expansion 10
11 Aerospace & Military Vertical 5 Major Sub-Verticals Drivers: Energy Efficiency, Weight Reduction, Safety, Defense 11
12 Industrial Vertical 8 Major Sub-Verticals Drivers: Energy Efficiency, Productivity, Safety, Uptime 12
13 Medical Vertical 8 Major Sub-Verticals Drivers: Demographics, Increasing Chronic Conditions, Home Care 13
14 Transportation Vertical 5 Major Sub-Verticals Material Handling Equipment Drivers: Energy Efficiency, Emissions, Safety, Predictive Maintenance 14
15 Global Technology Facilities Minneapolis, MN Physical Sensors Lab Freeport, IL Speed & Position Sensors MICRO SWITCH Newhouse, UK Thermal Sensors Richardson, TX Sensor Integrated Circuits Juarez, Mexico Global Design Center Boyne City, MI Precision Aerospace Switches Columbus, OH Pressure, Flow Load, Torque Sensors Bucharest, Romania Quartz MEMS Lab Shanghai, China Silicon MEMs Lab Nanjing, China Global Design Center Bangalore, India Global Design Center Labs Design Centers 9 Global Technology Centers, 3 Corporate Sensor Labs 15
16 Family of Trademarked Products Clarostat Data Instruments Electro Elmwood Fenwal Honeywell Hawk Honeywell HumidIcon Honeywell TruStability Honeywell Zephyr Hobbs Hycal Lebow Limitless MICRO SWITCH NEI Relialign Sensotec Sensym Products You Know And Trust 16
17 21 New Products Publicly Launched in 2012 Feb 2012 Heavy Duty Pressure Transducers PX2 Series Feb 2012 Zephyr Airflow Sensors New Flow Ranges HAF Series Feb 2012 Hall-effect Rotary Position Sensors RTY Series Feb 2012 Linear Hall-effect Sensor ICs SS39ET SS49E, SS59ET May 2012 Industrial Pressure Sensors IP150, IP250, IP500 Series June 2012 A-P Only: Dual Channel Safety Module SRS31 Series June 2012 High Sensitivity Bipolar Latching Digital Hall-effect ICs SS360NT/ST/ SS460S July 2012 Basic Board Mount Pressure Sensors 15 psi+ NBP Series July 2012 Heavy Duty Pressure Transducers New Ports PX2 Series July 2012 HumidIcon SPI HIH6130/31 Series; SIP 4 Pin HIH6120/ 21 Series July 2012 SMART Position Sensor Rotary SPS Series Aug 2012 Limitless Wireless Operator Interface WOI Series Sept 2012 SMART Position Sensor Arc Flying Leads SPS Series Sept 2012 Heavy Duty Pressure Transducers New Connectors PX2 Series Oct 2012 Relialign Residential Door Interlock Switch RDI2 Series Oct 2012 Omnipolar Digital Hall-Effect Sensor ICs SS551AT Dec 2012 Wing Union Pressure Sensors Shunt Cal Models 424/425/427 Dec 2012 Limitless Wireless Single Switch Adapter WLS Series Dec 2012 Basic Board Mount Pressure Sensors 1, 5 psi NBP Series Dec 2012 Limitless Wireless Limit Switch Eyelet Pull WLS Series Dec 2012 Zephyr Airflow Sensors High Flow HAF Series Products not to scale 17
18 Phase Gate 0 New Product Development Process 6-step Phase Gate design process from inception to market introduction: Customer Needs Identification Phase Gate 1 Concept Phase Gate 2 Design Phase Gate 3 Production Implementation Phase Gate 4 Market Introduction Phase Gate 5 New Product Management Team Manages resources and controls various phases of the new product development process, including: - Design - Development - Qualification - Transition to manufacturing 18
19 Honeywell Operating System Tools & Culture Enabling Tools Six Sigma Design for Flow Kaizen 5S Visual Management Standardized Work Rapid Problem Solving Value Stream Mapping Drives understanding of relationships between tools Disciplined behaviors we expect Consistent culture that promotes growth Lean Thinking Discipline Consistent Culture Efficient Eliminate Waste Pay Attention Observation Tacit Knowledge Experimentation Always Improve Tools Enable Culture Sustains 19
20 Honeywell Operating System Improves Performance 6 of S&C s manufacturing facilities achieved HOS Silver level in 2012 : Freeport Plant 1 /Galena, Illinois Juarez, Mexico Boyne City, Michigan Nanjing, China Pune, India Impact of HOS (Freeport Plant 1 & Galena) HSE Score from 74 % to 82% PPM Reduction from 407 to 65 YTD Over 36,000 Continuous improvements ideas during the HOS journey. Juarez Silver Celebration Newhouse and Richardson achieved Bronze accreditation in Columbus plans to be bronze 2013 Commitment to HOS Improves Performance Freeport, IL Plant 1 Silver Celebration 20
21 Supply Chain Strategy Key Strategic Initiatives Key Components Goal Honeywell Operating System Global Supply Chain Network Global Sourcing Advanced Manuf. Engineering SIOP & ERP Global Logistics Value stream optimization Standard work, accountability Six Sigma / Lean manufacturing Global CoEs / product focus plants Core process / technology focus Co-located design teams Focused, global supply base Supplier performance mgmt Sourcing for NPI Manufacturing Readiness Levels (MRL) Process / equipment standardization Product platforms Global demand & supply alignment Sales team & customer collaboration Common processes/system (SAP) World-ease fast delivery shipments Shipment consolidations Global trade processes OTTR > 95% PPM < 80 Competitive cost Competitive L/T Yield > 99% On-time launch Fast configuration Optimal working capital 1-3 days transport VMI / ASN Committed to Quality and Delivery Excellence 21
22 Delivery Performance Increases Ease of Doing Business Delivery [On-time to Request] Goal: No Customer Disruptions 96% 92% 90% 93% 90% 88% 85% 84% 82% 80% 76% Strong Customer and Growth Focus in all Factories 22
23 Quality Performance Increases Ease of Doing Business Quality [ppm] Record Quality Performance 90 ppm! Goal < 100 ppm Our Quality is a Differentiator 23
24 Quality Strategy Overview Business Strategies Drive growth in key Verticals and geographies Focus investment on product platforms Reduce business complexity ISC optimization Business responsiveness Business process improvements Drive processes and actions to improve customer Quality Customer Focus Validating & Enhancing Our Designs Early Warning Systems & Rapid Response Controlling & Improving Our Processes Global Management System Drive Customer Focus Teams Quality from the customers perspective Senior Leadership and Customer Quality Leaders aligned with strategic customers Increase responsiveness to customer Quality issues Integrating VOC requirements NPI process compliance Product reliability Streamline product returns Employ business system to manage RMAs Utilize HOS to drive Rapid Problem Solving (RPS) and Built in Quality (BIQ) Leverage Six-Sigma culture Compile and analyze all available data Leverage tools (PFMEA, control plans, process audits) to proactively improve Quality Critical drawing characteristics control Verify / Validate / Quality changes / Improvements Contract / Quote review robustness Improve Product Change Notification (PCN) process Customer and legislative compliance Global consistency and best practices 24
25 Global Management Systems Design Quality Factory Quality Customer Quality Supplier Quality ISO 9000 AS 9100 ISO ISO OHSAS ISO18000 EASA 21 Sub Part G EASA 145 Repair & Overhaul FAA and EASA certified Honeywell and Third Party repairs Test and Measurement Air data computers Accelerometers Actuators Angle of attack probes Cockpit indicators Gyroscopes Position sensors Pressure transmitters Y guides 25
26 Quality Approvals Design Quality Engineers Fundamental element of product design Meeting industry regulations ISO 9000 : 2000 AS 9100 QS 9000 EASA21 Sub Part G EASA145 ISO FAA certified repair station JAA certified repair station Repair & Overhaul FAA and JAA certified Honeywell and Third Party repairs Test and Measurement Air data computers Accelerometers Actuators Angle of attack probes Cockpit indicators Gyroscopes Position sensors Pressure transmitters Y guides 26
27 Global Growth Nanjing, China Manufacturing Center Global design and manufacturing center opened in ,000 sq. ft. and 600 employees Delivery 92% Quality <100 ppm Drives product localization for local markets World Class Manufacturing Facility 27
28 Top Priorities For Our Customers Launch new, innovative products with competitive value propositions that meet our customers needs Provide superior product delivery and quality Improve the product sampling process so customers receive sample units more quickly Ensure product availability Improve our responsiveness to customers Improve S&C s website and search capabilities Make it easier for our customers to do business with Honeywell Meet Our Customers Needs Every Day 28
29 For Additional Information About Honeywell About Honeywell Sensing and Control About Sensing and Control s new products Contact S&C s Customer Service team or info.sc@honeywell.com For product samples, visit the Honeywell Sensing and Control website to locate an Authorized Distributor or Sales Representative in your area 29
30
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