Honeywell (HON) to Spin-Off AdvanSix by Early 2017

Transcription

1 Spin-Off Announcement Honeywell (HON) to Spin-Off AdvanSix by Early 2017 May 31, 2016 SPNR <GO> Honeywell International Inc. Parent: Honeywell International Inc. (NYSE: HON) Sector: Technology and Manufacturing Share Price: $114.33* Spin-Off: AdvanSix Inc. Sector: Chemical Intermediates *As of May 27, 2016 $ Price Performance - HON Price Performance Since Spin-Off Announcement ROR: 1% 112 5/12/2016 5/17/2016 5/22/2016 5/27/2016 Source: Bloomberg Spin-Off Details Announcement May 12, 2016 Form-10 May 12, 2016 WI/RW Trading TBA Record/ Dist. Date TBA Expected Completion Early 2017 Spin-Off Ratio TBA Tax-Status Tax-Free Index Impact To be assessed Top 5 Shareholders - HON Holding % BlackRock 5.93 Vanguard Group Inc 5.65 Sun Life Financial Inc 4.67 Wellington Management 4.03 State Street Corp 3.66 Deal Overview On May 12, 2016, Honeywell International Inc. (NYSE: HON, $114.33, Market Capitalization: $87 billion) announced plan to spin-off its Resins and Chemicals business into a separate publicly traded company named AdvanSix Inc. Post spin-off, AdvanSix will be a leading manufacturer of Nylon 6, which is a polymer resin used to produce engineered plastics, fibers, filaments and films used in end products such as electronic components, carpets, sports apparel, fishing nets, food and industrial packaging. In the process of manufacturing Nylon 6, the company also produces byproducts such as Sulf-N ammonium sulfate fertilizers and chemical intermediates, including phenol, acetone and Nadone cyclohexanone. It will also be the largest single-site producer of caprolactam. On the other hand, Honeywell will continue to be a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, automation and control technologies as well as performance materials. On May 12, 2016, AdvanSix filed its initial Form-10 with the SEC. The spin-off will be effected via a distribution of 100% shares of AdvanSix to Honeywell shareholders. The transaction will be tax-free and is expected to complete by early In connection with the spin-off, AdvanSix intends to incur debt in the form of term loans and will also enter into a revolving credit facility for its working capital needs, the details of which will be announced at a later stage. Post spin-off, Erin Kane, the current Vice President and General Manager of Resins and Chemicals business will serve as President and Chief Executive Officer of AdvanSix. Other details of the spin-off such as the spin-off ratio, record date, when-issued trading date, distribution dates and ticker are yet to be disclosed. The transaction is subject to certain customary conditions including, final approval by Honeywell s Board of Directors. Deal Rationale Honeywell s Resins and Chemicals business has a leading position in the industries it serves with ~$1.3 billion in sales. It will be favorably positioned to continue to achieve global growth as a separate entity. The spin-off will also allow AdvanSix to enhance its strategic flexibility to respond to industry dynamics. Honeywell will continue to focus on driving growth through advanced software capabilities and technology differentiation with highvalue product offerings. Honeywell has a well-balanced capital deployment strategy, including acquisitions and divestitures, capital expenditures, dividends and share repurchase, which will drive additional value to its shareholders in the long-term. Post spin-off, Honeywell and AdvanSix will each have a more focused business and be better positioned to invest more in growth opportunities and execute strategic plans best suited to their respective businesses. Both the companies will have added flexibility to make capital investments that enhance its offerings and service to customers W. Washington Blvd, Suite 4-G, Chicago, Illinois Phone: Fax: SPNR <GO> S 1

2 Key Data - HON Primary Exchange NYSE Ticker HON Price ($ as on May 27, 2016) Week Range ($) Shares Outstanding (million) 762 Market Cap ($ billion) 87 Net Debt ($ billion) 8 Enterprise Value ($ billion) 95 Market Float (%) P/E (x) 17. Dividend ($) / Div. Yield (%) 2.38/2.08 Fiscal Year Ending December 31 Revenue 2015 ($ billion) 39 Index Member Part of S&P 500 Index Valuation and Recommendation We are yet to initiate valuation on this transaction. Accordingly, we do not have an investment rating or a price target on Honeywell International Inc., currently. Organization Structure Pre Spin-Off Post Spin-Off Acrospace Honeywell (HOT) Honeywell International Inc. (HOT) AdvanSix Inc. Acrospace Company Description Honeywell International Inc. (Parent) Honeywell International Inc. (HON) operates as a diversified technology and manufacturing company. The company serves customer worldwide and offers aerospace products and services, turbochargers, control, sensing and security technologies for buildings, homes and industry, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions for homes, business, and transportation. Honeywell operates through three segments, including Aerospace, Automation and Control Solutions (ACS), and Performance Materials and Technologies (PMT). AdvanSix Inc. (Spin-Off) AdvanSix Inc. is a leading manufacturer of Nylon 6, a polymer resin, which is a synthetic material used in the production of engineered plastics, fibers, filaments and films that, in turn, are used in such end products as automotive and electronic components, carpets, sports apparel, fishing nets and food and industrial packaging. It also produces and sells some byproducts such as Caprolactam, Ammonium sulfate fertilizer and Acetone and other intermediate chemicals which are used in process of manufacturing Nylon 6. 2

3 Business Overview - Honeywell 2015 Revenue by segment B - 37% C - 24% A: Aerospace A - 39% B: Automation and Control Solutions C: Performance Materials and Technologies 2015 Revenue by geography B - 22% A: United States C - 16% C: Other International A - 62% B: Europe Honeywell International Inc. is a diversified technology and manufacturing company, incorporated in The company invents and manufactures technologies which deal with the critical challenges around energy, safety, security, productivity and global urbanization. It has a customer base worldwide and is well positioned in serving a great combination of physical product along with software, supporting the areas like aerospace, security technologies for buildings, homes and industry, specialty chemicals, electronic, refining and petrochemicals and transportation. As of 2015, the company operates in 70 countries at ~1,250 sites and reached ~$40 billion in sales, where ~53% of total sales are generated outside US. Total sales comprise of product sales and services sales, represent 80% and 20% of total sales, respectively. Honeywell operates its business through three operating segments, named Aerospace, Automation and Control Solutions (ACS), and Performance Materials and Technologies (PMT). Aerospace Aerospace segment is involved in innovating and integrating products, software and services to deliver safe, efficient, productive and comfortable transportation experiences worldwide. Aerospace is the leading provider of products and services used in the airline and aviation industry. It is a global leader in supplying aircraft engines, integrated avionics, related systems and service solutions, products and services for aircraft manufacturers, aircraft operators, military services and defense and space contractors. It also leads in manufacturing of turbochargers which help in improving the performance and efficiency of passenger cars and commercial vehicles. Its products and services include auxiliary power units, propulsion engines, environmental control systems, connectivity, electric power systems, engine controls, flight safety, communications, navigation, radar and surveillance systems, aircraft lighting, management and technical services, logistics services, advanced systems and instruments, aircraft wheels and brakes, repair and overhaul services, turbochargers and thermal systems. Under its commercial aftermarket business, it provides aftermarket repair and maintenance services as well as spare parts, principally to aircraft operator. Aerospace sales represent 39% of total Honeywell sales. The segment is bifurcated into product and services segment contributing 68% and 32% of the total aerospace sales, respectively. It comprises of four businesses which included Commercial Original Equipment business and Transportation Systems business, which contribute 19% each and Commercial Aftermarket business and Defense and Space business which contribute 31% each. The segment has competition with Borg-Warner (automotive), Garmin, General Electric, Rockwell Collins, Thales and United Technologies. Automation and Control Solutions (ACS) Automation and Control Solutions delivers connected technology and experiences throughout the world and is transforming world s way of living. The segment is a global provider of products, software and technologies and involved in serving for environmental and energy solutions. 3

4 It provides sensors, switches and controls for sensing and productivity solutions. ACS deals with many products and services for various industry and areas which included products for security and fire safety, industrial safety and building solutions and services for homes, commercial buildings and industrial facilities. Its products and services include controls and displays for heating, cooling, indoor air quality, ventilation, humidification, combustion, lighting and home automation. Its software applications are used in home/ building control and optimization. Its instruments are used in measuring pressure, air flow, temperature and electrical current and provide control system as well. ACS also provides measurement, regulation, control and metering for gases and electricity, water utilities and industries, fire and gas detection and many more. The segment is credited for transforming lives by providing largest portfolio of products and services such as personal protection equipment, access control, video surveillance, remote patient monitoring systems, high performance data collection software and products including rugged. The segment is bifurcated in product segment and services segment and contributes 91% and 9% of the total ACS sales. It comprises of two businesses including Energy Safety & Security and Building Solutions & Distribution contributing 68% and 32% to total sales, respectively. The segment has competition with 3M, Johnson Controls, Schneider, Siemens and Zebra-Motorola. Performance Materials and Technologies (PMT) Performance Materials and Technologies segment is the leading global developer and manufacturer of advanced materials, process technologies and automation solutions. It comprises of three businesses which included UOP business, Process Solutions business and Advanced Materials business. UOP business of the segment represents 32% of the total PMT sales. It provides services such as refining, petrochemical and gas processing technologies and software services that are used in oil and gas industry. Process Solutions business represents 30% of the total PMT sales. It is a pioneer in software-based automation controls, instrumentation and services for the oil and gas, refining, pulp and paper, industrial power generation, chemicals, life sciences, and metals, minerals and mining industries. Advanced Materials business represents 38% of the total PMT sales and engaged in manufacturing wide range of high-performance products. Products offered by business are included fluorocarbons, hydrofluoroolefins, caprolactam, resins, ammonium sulfate fertilizer, phenol, specialty films, waxes, additives, advanced fibers, customized research chemicals and intermediates, and electronic materials and chemicals. The segment has competition with Albemarle, BASF, Dow, DuPont, Emerson and Sinopec. 4

5 Financial Overview - Honeywell $ billion Revenue Trend EBIT and Margin % $ billion % 16.0% % 14.0% 13.9% % EBIT Margin 2015 Sales decreased 4% YOY to $38.6 billion, primarily due to unfavorable FX impact which decreased 4% YOY due to weakening of the Euro and Canadian Dollar against the U.S. Dollar. Gross profit increased 4% YOY to $11.8 billion, leading margin expansion by 252 bps to 30.7%. Increase in the gross profit is attributable to decrease in cost of product and services sold due to lowering material cost of ~$1.5 billion, labor cost of ~$450 million and higher pension income of ~$230 million. EBIT increased 13% YOY to $6.6 billion, mainly driven by lowering operating expenses which lead to expansion in the margin by 264 bps to 17.1%. Operating expenses was favored by SGA expenses which decreased 9% YOY to $5 billion, primarily driven by favorable FX impact, increase in pension income, lowering indirect costs and benefits from repositioning. Net income increased 12% YOY to $4.8 billion, leading to margin expansion by 184 bps to 12.4%. Aerospace Sales decreased 2% YOY to $15.2 billion, primarily attributable to unfavorable FX impact which decreased 3% YOY and the friction materials divestitures which decreased 1% YOY, partially offset by growth in organic sales which increased 2% YOY. The segments sales impacted by poor performance by Transportation system business and Defense and space business, decreased 19% and 1% YOY to $3 billion and $4.7 billion, respectively. Gross profit increased 7% YOY to $4.2 billion, leading to an expansion in margin by 236 bps to 27.4%, driven by lower expenses of cost of products and services sold. Net income increased 10% YOY to $3.2 billion, leading to margin expansion by 243 bps to 21.1%. Automation and Control Solutions Sales decreased 3% YOY to $14.1 billion, primarily attributable to unfavorable FX impact which decreased 6% YOY, partially offset by growth in organic sales and acquisition, which increased 2% and 1% YOY, respectively. The segments sales impacted by poor performance by both of its businesses, Energy Safety & Security business and Building Solutions & Distribution business, decreased 2% and 4% to $9.5 billion and $4.6 billion, respectively. Gross profit decreased 1% YOY to $5 billion, however margin expanded by 48 bps to 35.3%. Net income increased 5% YOY to $2.3 billion, leading to margin expansion by 121 bps to 16.4%. Performance Materials and Technologies Sales decreased 10% YOY to $9.2 billion, primarily attributable to decrease in organic sales by 6% YOY and unfavorable impact of FX decrease by 4% YOY. The segments sale was impacted by decrease in the sales of all businesses. UOP business decreased 7% YOY to $3 billion, Process Solutions business decreased 12% YOY to $2.7 billion and Advanced Materials business decreased 10% YOY to $3.5 billion. Gross profit decreased 1% YOY to $3 billion, however margin expanded by 284 bps to 32.2%, driven by lowered expenses of cost of products and services sold. Net income increased 6% YOY to $2 billion, leading to margin expansion by 318 bps to 21%. 5

6 1Q16 Sales increased 3% YOY to $9.5 billion, primarily attributable to acquisition impact which increased 5% YOY, partially offset by unfavorable foreign exchange transaction which decreased 2% YOY due to weakening of the Euro and Canadian Dollar against the U.S. Dollar. Gross profit increased 4% YOY to $3 billion, leading margin expansion by 30 bps to 31.2%. Increase in the gross profit is attributable to increased margin of Aerospace and Performance Materials and Technologies segments and increased pension and other postretirement benefits income, partially offset by Automation and Control Solutions segment. EBIT increased 4% YOY to $1.6 billion, attributable to excellent management of cost and expenses. Net income increased 6% YOY to $1.2 billion, leading to expansion in the margin by 34 bps to 12.5%. 6

7 Business Overview - AdvanSix Sales by Product Category 2015 C - 19% D - 24% B - 27% A - 30% A: Acetone and other intermediate chemicals B: Ammonium sulfate fertilizer C: Caprolactam D: Resins C - 2% Sales by Region 2015 B - 12% D - 13% A - 73% A: US B: Asia C: EMEA D: Latin America and Canada AdvanSix is a leading manufacturer of Nylon 6, a polymer resin which is a synthetic material used in the production of engineered plastics, fibers, filaments and films. These are in turn used in the production of end products such as automotive and electronic components, carpets, sports apparel, fishing nets and food and industrial packaging. Nylon 6 resin sales accounted for 24% of total sales in All of the company s manufacturing plants are located in the US. The company serves ~500 customers in more than 40 countries. In 2015, 72% of the sales were derived in the US, followed by 13% and 12% sales from Canada and Latin America, respectively. During the year 2015, the company had total sales of $1.3 billion and net income of $68 million. In the process of manufacturing Nylon 6 resin, the company also produces a few byproducts such as Caprolactam, Ammonium sulfate fertilizer and Acetone and other intermediate chemicals. The company has competition with BASF Corporation, Sinopec Limited, DOMO Chemicals GmbH, LANXESS AG, Ube Industries Ltd., Li Peng Enterprise Co. Ltd. and Zig Sheng Industrial Co., Ltd. The company also competes with Pasadena Commodities International, synthetic manufacturers of agricultural fertilizers and Ineos Capital Limited, a phenol producer. Caprolactam The company markets and sells Caprolactam, a chemical compound used in the production of Nylon 6 resin, which is not consumed internally in the production of the resin. It is sold to manufacturers of polymer resins, nylon fibers, films and other nylon products. The company s Hopewell manufacturing facility is the world s largest single-site producer of Caprolactam. Nearly half of the production from the Hopewell facility is consumed internally in the production of Nylon 6 resin. The category accounted for 19% of total sales in In 2015, the company generated sales of $247.3 million for Caprolactam. Category represents 19% of total sales in Ammonium sulfate fertilizer Ammonium sulfate fertilizer is a co-product in the manufacturing process of caprolactam. It also used as a nitrogen-based fertilizer. The company produces ~4 pounds of ammonium sulfate for ~1 pound of caprolactam that company manufacture which is almost double compared to competitors. Hopewell facility s size and scale of operations makes the company world s largest single-site producer of ammonium sulfate fertilizer as of December 31, The company markets and sells the product primarily to North American and South American resellers. The product is used in the production of high quality crops. As of 2015, total production capacity of ammonium sulfate was ~3,300 million pounds. It sells ammonium sulfate under the brand name SulfN and generated sales of $351.4 million which accounted 27% of total sales in

8 Acetone and other intermediate chemicals A byproduct in the production process is Acetone which is sold to the producers of adhesives, paints, coatings, solvents, herbicides and other engineered plastic resins. The company also markets and sells a number of other chemical co-products that are derived from the chemical processes within the production process of Nylon 6 resin such as phenol, alphamethylstyrene ( AMS ), cyclohexanone, methyl ethyl ketoxime ( MEKO ), cyclohexanol, sulfuric acid, ammonia and carbon dioxide. Phenol is the key chemical intermediate of caprolactam, which is used in caprolactam manufacturing process at company s Frankford plant. As of December 31, 2015, the company had production capacity of ~ 1,100 million pounds of phenol, out of ~75% used in Caprolactam production and other co-products in Hopewell plant and 25% used for sale to customer. AMS, MEKO, cyclohexanone and cyclohexanol are the products, which company uses in manufacturing process as well as sells them to customers who use them in end products such as resins, inks, paints, coatings and agricultural chemical intermediates and detergents. In 2015, it generated sales of $390.4 million of chemical intermediates products, out of which $295.9 million, or 23%, came from sales of phenol, acetone and AMS, and $94.5 million, or 7%, came from sales of other chemical intermediates. The category accounted for 30% of total sales in

9 Financial Overview - AdvanSix $ billion Revenue Trend Operating Income vs Margin Trend $ millions % % 7.6% Operating Income Margin 12.0% 10.0% 8.0% 6.0% 2015 Overall revenue declined 26% YOY to $1.3 billion with similar declines in cost of sales of 27% YOY to $1.1 billion. The decline in sales was primarily driven by lower prices of the raw materials used to manufacture intermediate chemicals, caprolactam and polymer resins and due to unplanned plant outages. The decline in cost of sales was driven by lower sales volume due to unplanned plant outages and due to a drop in raw materials prices, particularly cumene and natural gas. Gross profit declined 16% YOY to $154 million, however gross margin increased by 139 bps to 11.8% due to the net impact of declining market pricing and the favorable impact of lower raw material costs. EBIT declined 21% YOY to $104 million however margin expanded by 44 bps to 8%. Net income also saw similar decline of 21% YOY to $68 million, however margin expanded by 34 bps to 5.2%. Revenue at all segments declined significantly. Sales for Nylon resins declined 22% YOY to $312 million, Caprolactam sales declined 36% YOY to $247 million, Ammonium sulfate fertilizers sales declined 4% YOY to $351 million and sales for Other chemical intermediates declined 34% YOY to $390 million. Category-wise Sales $ million Change Nylon Resins (22)% Caprolactam (36)% Ammonium sulfate fertilizers (4)% Other chemical intermediates (34)% 9

10 Attachment 1 Income Statement - Honeywell $ million Q16 Product sales 32,398 30,695 7,619 Service sales 7,908 7,886 1,903 Net sales 40,306 38,581 9,522 Cost of products sold 23,889 21,775 5,349 Cost of services sold 5,068 4,972 1,198 Gross profit 11,349 11,834 2,975 Selling, general and administrative expenses 5,518 5,006 1,280 Other (income) expense (305) (68) (18) Interest and other financial charges Operating income 5,818 6,586 1,628 Tax expense 1,489 1, Net income 4,329 4,847 1,196 Less: Net income attributable to the non-controlling interest Net income attributable to Honeywell 4,239 4,768 1,186 10

11 Attachment 2 Balance Sheet - Honeywell $ million 12/31/ /31/2015 3/31/2016 Cash and cash equivalents 6,959 5,455 4,473 Accounts, notes and other receivables 7,960 8,075 8,397 Inventories 4,405 4,420 4,743 Deferred income taxes Investments and other current assets 2,145 2,103 1,919 Total current assets 22,191 20,053 19,532 Investments and long-term receivables Property, plant and equipment-net 5,383 5,789 6,027 Goodwill 12,788 15,895 16,708 Other intangible assets-net 2,208 4,577 4,706 Insurance recoveries for asbestos related liabilities Deferred income taxes Other assets 1,558 1,776 2,051 Total assets 45,451 49,316 50,365 Accounts payable 5,365 5,580 5,511 Commercial paper and other short-term borrowings 1,698 5,937 3,631 Current maturities of long-term debt Accrued liabilities 6,771 6,277 5,891 Total current liabilities 14,773 18,371 15,659 Long-term debt 6,046 5,554 9,700 Deferred income taxes Postretirement benefit obligations other than pensions Asbestos related liabilities 1,200 1,251 1,252 Other liabilities 4,282 4,348 4,247 Redeemable noncontrolling interest Total liabilities 27,667 30,898 31,993 Total equity 17,784 18,418 18,372 Total liabilities and equity 45,451 49,316 50,365 11

12 Attachment 3 Income Statement - AdvanSix $ million Sales 1,725 1,752 1,301 Costs of goods sold 1,488 1,569 1,147 Gross profit Selling, general and administrative expenses Operating income Other non-operating, net (2) (3) (3) Income before taxes Income taxes Net income

13 Attachment 4 Balance Sheet - AdvanSix $ million 12/31/ /31/2015 Accounts and other receivables, net Inventories Deferred income taxes 6 0 Other current assets 3 4 Total current assets Property, plant, equipment, net Goodwill Other assets 8 16 Total assets Accounts payable Accrued liabilities Deferred income and customer advances Total current liabilities Deferred income taxes Other liabilities 5 4 Total liabilities Total equity Total liabilities and equity

14 Attachment 5 Management - Honeywell David M. Cote Chairman and Chief Executive Offi cer (CEO) Mr. David M. Cote is the Chairman and Chief Executive Officer of Honeywell and has been serving on the position from July He joined Honeywell in February 2002 as President and Chief Executive Officer. Mr. Cote has extensive experience in the industry for serving on the upper level management. Previously, he was associated with TRW Inc., and served there as Chairman, President and Chief Executive Officer from the period of August 2001 to February He also served as TRW s President and CEO from the period February 2001 to July 2001 and its President and Chief Operating Officer from the period of November 1999 to January Mr. Cote also worked with General Electric Company and served there as Senior Vice President as well as he was CEO of GE appliances for more than three years, from the period of June 1996 to November Mr. Cote is director of Federal Reserve Bank of New York from March He also served as a Director of JPMorgan Chase & Co. from year 2007 to Mr. Cote has a Bachelor s degree in Business Administration from the University of New Hampshire. In 2001, Mr. Cote received an honorary Doctor of Laws degree from the Graziadio School of Business and Management, Pepperdine University. Compensation Mr. Cote earned total salary of $34.5 million in the financial year Total salary comprised of base salary of $1.9 million, annual bonus of $5.7 million, annual stock options awards of $10.3 million, nonequity incentive plan compensation $14.3 million, change in pension value and nonqualified deferred compensation earnings of $1.4 million and all other compensation of $0.9 million. Thomas A. Szlosek Senior Vice President (SVP) and Chief Financial Offi cer (CFO) Mr. Thomas A. Szlosek is a Senior Vice President and Chief Financial Officer of Honeywell International and has been serving the position from April Prior to this, Mr. Szlosek has been the Vice President of Corporate Finance, were he was responsible for the corporate tax, treasury, investor relations, audit, financial planning, and back office in the company for one year, from April 2013 to April He was Chief Financial Officer for Honeywell s largest business group, Automation and Control Solutions (ACS) for almost six years, from the period of 2007 to He was also involved in the transaction of 15 acquisitions valued at over $3 billion. Mr. Szlosek also served as Vice President and Controller of Honeywell from year 2004 to Mr. Szlosek has immense experience in the industry. Previously, he was associated with General Electric Company for eight years and held various finance leadership roles, such as CFO of GE Medical Systems Asia and GE Consumer Finance Europe. Before joining GE, he was in the audit practice with Price Waterhouse for ten years. Mr. Szlosek earned a degree in bachelor s of accounting from the State University of New York at Geneseo. He is also a Certified Public Accountant (CPA). Compensation Mr. Szlosek had total salary of $7.1 million in the financial year Total salary encompasses a base salary of $0.8 million, annual bonus of $0.9 million, annual stock options awards of $2.2 million, non-equity incentive plan compensation $3 million, change in pension value and nonqualified deferred compensation earnings of $0.2 million and all other compensation of $57 thousand. 14

15 Attachment 6 Management - AdvanSix Ms. Erin N. Kane President and Chief Executive Offi cer (CEO) Ms. Erin N. Kane will be the President and CEO of AdvanSix post spin-off. She has been VP and General Manager of Honeywell s Resins and Chemicals business since October In 2002, Ms. Kane joined Honeywell as a Six Sigma Blackbelt for Honeywell Specialty Materials. In 2004, Ms. Kane became product marketing manager for Honeywell Specialty Additives. She also served as a global marketing manager for Honeywell s Authentication Technologies business for 2 years until After that, she was named global marketing manager for Honeywell Resins and Chemicals. In 2011, Ms. Kane was named as business director of chemical intermediates for Honeywell Resins and Chemicals. Before joining Honeywell, she held Six Sigma and process engineering positions at Elementis Specialties and Kvaerner Process. Compensation In 2015, Ms. Kane s total compensation was $842,921, which comprised of base salary of $259,125, bonus of $97,000, stock awards of $139,266, option awards of $137,840, non-equity incentive plan compensation of $162,150, change in pension value and non-qualified deferred compensation earnings of $33,428 and all other compensation of $14,112. Any recommendation contained in this report may not be suitable for all investors. Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. In addition, Spin-Off Advisors, L. L. C. and employees of Spin-Off Advisors, L. L. C. may hold positions or effect transactions contrary to recommendations mentioned herein. This report may not be reproduced, copied, duplicated or electronically forwarded without the expressed written permission of Spin-Off Advisors, L. L. C Spin-Off Advisors, L. L. C. All Rights Reserved W. Washington Blvd, Suite 4-G, Chicago, Illinois Phone: Fax: SPNR <GO> 15