120,000 employees in nearly 100 countries with headquarte

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Honeywell Group
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Company Leadership Structure
CHAIRMAN CEO Dave Cote
PRESIDENT CEO Aerospace Rob Gillette
PRESIDENT CEO Automation and Control
Solutions Roger Fradin
PRESIDENT CEO Specialty Materials Nance Dicciani
PRESIDENT CEO Transportation Systems Adriane
Brown
SR. VICE PRESIDENT Chief Financial Officer Dave
Anderson
SR. VICE PRESIDENT General Counsel Peter
Kreindler
PRESIDENT Air Transport Regional Tim Mahoney
PRESIDENT HoneywellProcess Solutions Jack Bolick
PRESIDENT Turbo Technologies Adriane Brown
VP/GM Performance Products Jeremy Steinfink
VP/GM Electronic Materials Barry Russell
PRESIDENT Sensing and Control Beth Wozniak
SR. VICE PRESIDENT Human Resources
and Communications Tom Weidenkopf
PRESIDENT Business General Aviation Rob Wilson
PRESIDENT Honeywell Building Solutions Joe Puishys
PRESIDENT Consumer Products Group Dave Lundstedt
VP/GM Fluorine Products Rich Preziotti
PRESIDENT CEO UOP LLC Carlos Cabrera
PRESIDENT Security Ben Cornett
SR. VICE PRESIDENT Administration Chief
Information Officer Larry Kittelberger
VP/GM Resins Chemicals Qamar Bhatia
PRESIDENT Environmental and Combustion
Controls Andreas Kramvis
PRESIDENT Defense Space Dean Flatt
PRESIDENT Life Safety Mark Levy
VP/GM Specialty Chemicals Jack Boss
VICE PRESIDENT Six Sigma Operations Bill Ramsey
VICE PRESIDENT Strategy Business Development Rho
nda Germany
President China Shane Tedjarati
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Company Overview

• 120,000 employees in nearly 100 countries with
  headquarter in Morristown, New Jersey, U.S.A
• A Fortune 100 company 31 billion sales in year
  2006
• One of the Standard Poors 500 Index
• Listed on the New York Stock Exchange, London,
  Chicago and Pacific stock exchanges
• Honeywell is a diversified technology and
  manufacturing leader, serving customers worldwide
  within four main business segments Aerospace,
  Automation and Control Systems, Specialty
  Materials and Transportation Systems

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Honeywells Business Strengths
2006 Sales
Total 31B
Diverse Businesses, Technologies and Products
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Aerospace
A leading global provider of integrated avionics,
propulsion engines, and full-service solutions
for our customers. Competitive
Strengths Breadth and depth of
products/services Systems integration Extended
services Enhanced safety Greater reliability
Value to the customer Global Presence 40,000
employees worldwide Headquarters Phoenix,
Arizona Sales 11 billion in 2006
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Aerospace
Representative Customers EADS/Airbus, Bell,
Boeing, Bombardier, Cessna Dassault, Embraer,
Fairchild Dornier, FedEx, General Electric,
Gulfstream, Hughes,Lockheed Martin, Northrop
Grumman, Raytheon, Sikorsky, Sino
Swearingen,United Technologies, U.S. Department
of Defense, U.S. Department of Energy,U.S.
National Aeronautics and Space Administration
(NASA), and leading airlinesand airport
authorities Major Customers in China Air China,
China Eastern, China Southern, Hainan Airline and
Shanghai Airline
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Automation and Control Solutions
A global leader in providing product and service
solutions that improve efficiency and
profitability, support regulatory compliance, and
maintain safe, comfortable environments in homes,
buildings and industry. Products and services
are used around the world in more than 100
million homes and buildings as well as in 24 of
25 top oil refineries.

• Businesses
• Environmental and Combustion Controls, Life
  Safety, Honeywell Building Solutions, Honeywell
  ProcessSolutions, Security, Sensing Control
• Products
• Controls for heating, cooling, ventilation,
  airconditioning, humidification, industrial
  process automation, video surveillance, people
  and assettracking and access control equipment
• Security, fire detection, gas detection and
  industrial safety systems, home automation
  systems
• Home health monitoring systems
• Advanced software applications for home/building
  control and industrial optimization
• Sensors, switches, control systems and
  instruments for measuring pressure, air flow,
  temperature, electrical current and more
• Drinking water solutions
• Combustion control solutions

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Automation and Control Solutions
Competitive Strengths Strong customer
relationships large installed base
high-technology open-systems solutions
integration expertise broad distribution
channels worldwide brand recognition broad
range of products, systems, commitment and
passion to service Global Presence 50,000
employees in more than 100 countries Headquarters
Minneapolis, Minnesota Sales 11 billion in
2006
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Automation and Control Solutions

• Representative Customers
• Alcoa, AstraZeneca, BASF, Boeing, Brinks,
  ChevronTexaco, DaimlerChrysler, DuPont,
  ExxonMobil, General Motors, PDVSA,
  ConocoPhillips, Procter Gamble, Qatar General
  Petroleum, Sasol, Sinopec, Stora Enso, Sydney
  Airport, TotalFinaElf, Weyerhaeuser, and building
  and homeowners, and others
• Major Customers in China
• Sinopec, PetroChina, CNOOC, Bao Steel, Wuhan
  Steel, Jinmao Tower, Formula I

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Transportation Systems
The worlds leading innovator of automotive
turbochargers. We offer some of the best-known
consumer automotive product brands and
manufacture world-class braking material for
major auto manufacturers around the world.

• Businesses
• Turbo Technologies
• Consumer Products Group
• Products
• Garrett turbochargers
• Prestone antifreeze/coolant
• Autolite platinum spark plugs
• FRAM automotive filters
• Holts car care products
• Bendix and Jurid brake pads

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Transportation Systems

• Competitive Strengths
• Innovative technologies, strong RD
  capabilities,superior brand recognition, strong
  customerrelationships, broad distribution
  network,original equipment experience
• Global Presence
• 14,000 employees in 18 countries.
• Headquarters Torrance, California
• Sales
• 4.5 billion in 2006
• Representative Customers
• Advance Auto Parts, Audi, Auto Zone, BMW, Bosch,
  Canadian Tire, Continental Teves, CSK Auto,
  DaimlerChrysler, Ford, General Motors, Honda,
  Hyundai, Nissan, Renault, TRW, Volkswagen, Volvo,
  Wal-Mart
• Major Customers in China
• Weifang Diesel, Shanghai Diesel, Yuchai Diesel,
  Wuxi Diesel, Dalian Diesel, Chaoyang Diesel,
  Yunnan Power, Jiangling Auto

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Specialty Materials
A global leader in providing customers with
high-performance specialty materials, including
fluorocarbons, specialty films and additives,
advanced fibers and composites, customized
research chemicals, and electronic materials and
chemicals.

• Businesses
• Electronic Materials, Fluorine Products,
  Performance Products, Resins Chemicals,
  Specialty Chemicals,UOP LLC
• Products
• Aclar film packaging
• Enovate environmentally-friendly blowing agent
• Spectra high-performance fiber
• DUO anti-reflective coating
• Aegis resins
• Lumilux luminescent pigments
• Genetron environmentally-friendly refrigerants
• Wafer thinning materials
• Technical services for the petroleum refining,
  petrochemical and gas processing industries

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Specialty Materials

• Competitive Strengths
• Focus on core growth platform technologies with
  strong IP protection in high-growth markets
  ranging from semiconductors to armor worldwide
  brand recognition broad range of customers
  recognized as leader in high-purity chemicals
• Global Presence
• 9,600 employees in nearly 55 locations
• Headquarters Morristown, New Jersey
• Sales
• 4.5 billion in 2006
• Representative Customers
• Intel, Motorola, IBM, Samsung, Infineon
  Technologies, Carrier Corp., Haier Group, York
  International, Dow Chemicals, BASF, U.S.
  Military, Pfizer, GlaxoSmithKline, Mohawk, Shaw
• Major Customers in China
• Haier, Gree, Rongsheng, SMIC, TSMC, Hejian,
  HHNEC

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Honeywell China
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Honeywell China History
Asia-Pacific Headquarter moved to Shanghai 2003
Combined PRC/HK operations Sinopec-Honeywell
JV 1993
Honeywell first distributor in Shanghai 1935
Honeywell set up more entities in China 1995
2004 Honeywell Global RD center setup in
Shanghai
1987 Honeywell China Inc. established in PRC
1994 Honeywell (Tianjin) Ltd wholly foreign
owned enterprise set up in PRC
1999 Honeywell International in
China Integrated
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China Presence
Operations

• ACS
• RD Fire, Security, ECC, SC
• Mfg - SC, Security, ECC, Fire
• AERO
• MRO APU, wheels brakes
• Mfg Accessories, engine
• RD Avionics
• SM
• Mfg Fluorine blending, UOP
• RD Asia lab
• TS
• Mfg Turbo, Friction
• RD Turbo
• HTSL
• Asia Pac China HQ

Sales
GDP (US Bn)
T1 Cities Others
Expanding into Tier-2 Cities
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HON China Revenue Exceeded 1 Bn in 2007
USMn
US1Bn
A Milestone Year for HON China
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Recent HON Investments Chongqing

• Chongqing
• City of largest population (28Mn) in China
• 42 of Shanghai RE investment in 2005
• Incremental Hotels by 2010 10 5-stars 15
  4-stars 30 3-stars
• As pioneer cities in western area, many landmark
  projects, e.g. Chongqing Grand Theatre, Science
  Technology Museum and etc
• 2 Bn to be invested in EE projects within
  2005-2010

Asia Pacific Enterprise Valley (400Mn)
Jiangnan Theatre (50Mn)
Sheraton (131Mn)
Marriott Financing Center (260Mn)
Guo Tai Art Center (50Mn)
HPS Global Engineering Center
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Recent HON Investments Nanjing

• Capital of Jiangsu Province
• 3rd largest province GDP
• 5th largest province by GDP per capita
• 24 of Shanghai RE investment in 2005
• Leverage SC investment, build local
  relationships,
• tap project opportunities, e.g.
• 5 subway lines of 97.6km to be built in 10 years,
  total investment of 4.8Bn
• 19 five-star hotels to be built by 2010
• Expansion of Nanjing airport adding 2 runways
• New city center in Pukou area

New Pukou City Center
SC Manufacturing GDCOT
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Chinese Competitors Impact on HON
Global Challengers
Exporter
ER Players
ER Producer
Brand Innovators
Localized MNC
Mature Imitators
Mid-segment Player
Garage Imitators
Mass Segment
Change since 2005
Intensifying Competition Across HON Portfolio
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Market Segments
CAGR (2004-2010)
Share Of Major Players (2005)
Example Electronics Industry
MNCs Cornered into Thin High-End Segment
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High End (30)
Local stars moving up aggressively from low mid
end into high-end

• Chinese competitors aggressively penetrating
  mid-segment, e.g., GST
• Added 27 branches in 2006 for a total of 115.
  Plans to add 17 in 2007.
• 1,114 sales, marketing, and service engineers in
  China.
• Chongqing alone has 40 staffs.

Mid Range (40)
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Foreign companies Chinese companies
Low End (30)
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Source McKinsey
Chinese Companies Winning The Mid Segment
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Growth Accelerators
West-to-East Localization Sourcing
East-to-West Zero Base Innovation, MA and
China Growth Fund
? 40-45, in some cases up to 80
Localized MNC cost
Product Design
Support
Others
Product Design
Support
Others
Global Cost Leader
Parity with MNCs
Source McKinsey
Turning China Threat Into Opportunity
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www.honeywell.com.cn