Todays Honeywell

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Todays Honeywell

• Honeywell Company Overview
• 2005

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Company Overview

• 109,000 employees in nearly 100 countries
• A Fortune 100 company sales of 25.6 billion in
  2004
• One of 30 select companies represented by the Dow
  Jones Industrial Average
• On the Fortune magazine 2004 list of Most
  Admired Companies 3 in the Aerospace and
  Defense industry
• On the 2004 Best Practices in Corporate
  Communications list of 25 Best Practices Web
  Sites
• Winner of the Control Engineering magazine 2004
  Editors Choice Award for Instrumentation and
  Process Sensors, and the 2004 Breakthrough
  Product of the Year award from Processing
  magazine for Honeywells XYR 5000 Wireless
  Transmitters
• Winner of the Environmental Protection Agencys
  Landfill Methane Outreach Program 2004 Project
  of the Year Award

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Company Leadership
CHAIRMAN CEO Dave Cote
PRESIDENT CEO Automation and Control
Solutions Roger Fradin
PRESIDENT CEO Transportation Systems Adriane
Brown
PRESIDENT CEO Aerospace Rob Gillette
PRESIDENT CEO Specialty Materials Nance Dicciani
SR. VICE PRESIDENT Chief Financial Officer Dave
Anderson
PRESIDENT Engines, Systems Services Russ Turner
PRESIDENT HoneywellProcess Solutions Jack Bolick
PRESIDENT Turbo Technologies Adriane Brown
SR. VICE PRESIDENT GENERAL COUNSEL Peter
Kreindler
VP/GM Performance Products Mike Ryan
VP/GM Electronic Materials Barry Russell
PRESIDENT Sensing and Control Ron Sansom
PRESIDENT CEO UOP Carlos Guimaraes
PRESIDENT Aerospace ElectronicSystems Dean Flatt
PRESIDENT Honeywell Building Solutions Joe Puishys
PRESIDENT Consumer Products Group Dave Lundstedt
SR. VICE PRESIDENT Human Resources
and Communications Tom Weidenkopf
VP/GM Chemicals Rich Preziotti
PRESIDENT Security Ben Cornett
PRESIDENT Friction Materials Laura Ulz
SR. VICE PRESIDENT Administration Chief
Information Officer Larry Kittelberger
VP/GM Nylon Walter Hubbard
PRESIDENT Asia Pacific John OHiggins
VP/GM Aircraft Landing Systems Peg Billson
PRESIDENT Life Safety Mark Levy
VICE PRESIDENT Commercial Aerospace Lynn Brubaker
VICE PRESIDENT Six Sigma Operations Bill Ramsey
PRESIDENT Environmental and Combustion
Controls Andreas Kramvis
VICE PRESIDENT Defense Space Scott Starrett
VICE PRESIDENT Strategy Business Development Rho
nda Germany
President China Shane Tedjarati
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Honeywells Businesses
2004 Sales
Total 25.6B
Diverse Businesses, Technologies and Products
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Honeywell Initiatives and Behaviors

• 5 Initiatives
• Growth
• Productivity
• Cash
• People
• Enablers DigitalWorks and Six Sigma

• 12 Behaviors
• Growth and Customer Focus
• Leadership Impact
• Gets Results
• Makes People Better
• Champions Change and Six Sigma
• Fosters Teamwork and Diversity
• Global Mindset
• Intelligent Risk Taking
• Self-Aware/Learner
• Effective Communicator
• Integrative Thinker
• Technical or Functional Excellence

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The 4 Pillars of Growth
Honeywells first initiative is Growth. We will
pursue organic growth through four fundamental
strategies, or pillars

• Doing a superb job for our customers every day in
  quality, delivery, value, and technology
• Superior Sales and Marketing
• Globalization
• Developing robust, funded technology roadmaps for
  new products and services, all supported with a
  strong commitment to Design for Six Sigma (DFSS)

Each Business Has Developed a Growth Game Plan
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Aerospace
The worlds premier supplier of aircraft engines
and systems, avionics and other products and
services for airliners, regional and business
aircraft, military aircraft, and spacecraft.

• Businesses
• Aerospace Electronic Systems Engines, Systems
  Services Aircraft Landing Systems
• Products
• Aircraft engines
• Auxiliary power units
• Integrated avionics and aircraft control systems
• Aircraft safety systems
• Precision guidance and navigation
• Environmental control systems
• Electric generation and distribution systems
• Wheels and brakes
• Repair overhaul
• Spare parts
• Support services for space and communications
  facilities
• After-sales avionics support solutions
• Aircraft lighting
• Aircraft cabin entertainment and passenger
  productivityproducts/systems

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Aerospace

• Representative Customers
• EADS/Airbus, Bell, Boeing, Bombardier, Cessna,
  Dassault, Embraer, Fairchild Dornier, FedEx,
  General Electric, Gulfstream, Hughes, Learjet,
  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 airlines and
  airport authorities
• Competitive Strengths
• Growing and expanding core products systems
  integration extending services enhancing
  safety knowledge management
• Global Presence
• 40,000 employees worldwide
• Headquarters Phoenix, Arizona
• Sales
• 9.8 billion in 2004

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Engines, Systems Services

• Mexico Sourcing Overview - 2005

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Engines, Systems Services

• The ESS initiative
• Current Buy in Mexico 15M
• Objective double this figure in the following 18
  -24 months

• Sourcing Strategy
• ESS Mexicali Facility Localization Plan
• Maximize utilization of current Aerospace supply
  base
• Support Supplier Migration
• Develop (educate, train) local suppliers for
  Aerospace industry

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Engines, Systems Services

• Speed Bumps
• Simple machining parts may include
• NDT (FPI, X-Ray inspection, etc)
• Vacuum Heat Treatment (Ni-based alloys)
• Chemical processing (Anodize, Passivation, Paint)
• Availability of Aerospace grade Materials
• Minimun order, lot sizes.
• Development time w / Non Aerospace suppliers
• The chicken-and-the-egg dilemma
• NADCAP approvals

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Engines, Systems Services
Commodity distribution.

• Tubes, ducts
• Blades
• Shafts
• Harnesses
• Gears
• Combustion chamber
• Valves

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Aerospace Electronics Systems

• Mexico IPO Overview - 2005

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Aerospace Electronics Systems - AES

• One of Aerospace's three strategic business
  units, provides advanced electronics for
• Large and Regional Commercial Air transport,
• Business and General Aviation
• Military Aircraft and Surface vehicles,
• Defense and Space systems (U.S. Global)
• World's leading supplier of avionics systems for
  use on commercial airlines
• Every air transport aircraft in production has
  Honeywell avionics on board

Businesses Commercial Electronic Systems,
Customer Services, Defense Space, Federal
Manufacturing Technologies, Honeywell
Technology Solutions Inc.
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AES- Sites, Locations

• Phoenix, Az (HQ)
• Redmond, Wa (IPO Management)
• IPO
• Far East Singapore/Malaysia, China
• Eastern Europe Brno, Czech Rep,
• Latin America Monterrey, Mexico
• Urbana, Oh
• Olathe, Ks
• Albuquerque, NM
• Minneapolis, Mn
• Sarasota, Fl.
• Columbia, Md.
• Service repair facilities in 16 strategic
  locations worldwide

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AES- Products

• Avionics Integrated systems
• Flight safety communication, navigation,
  surveillance
• Flight management systems
• Cockpit display, data management aircraft
  performance monitoring
• Vehicle management
• Inertial sensors for guidance, stabilization,
  navigation and control including gyroscopes
• Aircraft interior and exterior lighting
• Automatic Testing Systems
• Computer-controlled, functional, portable,
  diagnostic, advanced battery chargers
• Radar
• Aircraft precision landing, ground surveillance,
  target detection devices
• Technical services
• Satellite operations, ground systems support
  depot maintenance and engineering support supply
  chain logistics, inventory management applied
  IT, Security, Spacecraft engineering.

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AES- Processes needed

• CNC Machining (Milling, Lathe)
• Special Materials (Aluminum, Brass, Bronze,
  Stainless Steel)
• with / without secondary assembly (helicoils,
  inserts, screws)
• Sheetmetal,
• from simple components to complete cabinets.
• Die Investment Casting
• (Lost Wax, Sand) with/without later machining
  and/or assembly.
• Plastics Injection Molding (Engineering resins
  (PC)
• with/without secondary assembly (mechanical,
  sonic welding) and/or deco operations (pad
  printing, paint)
• Secondary Special Processes
• Assembly, Thermal and Chemical (Passivation,
  Chemfilm, Annodizing), Paint, Marking, Welding
  (Dip Grazing Conventional).
• Electronic Componentry
• PCBs, Wire-Wrapping Braiding, Harnesses, Full
  cabinets.

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AES- Supplier Characteristics

• Low-Volume, High Mix Requirements Typical
  Quoting Package 180 P/Ns, 300-600 pcs/yr ea.,
  US350 - 500 K / yr.
• Initial Savings vs. Current U.S.-based supplier,
  plus yearly 3 productivity improvements through
  the life of the Contract (3 years)
• Robust Quality System ISO90012000 Minimum,
  willing to seek AS9100 if selected.
• Process Lean Manufacturing 6-Sigma Principles
  5-S, Kaizen, etc.
• Bilingual technical Personnel in key positions
  for interaction with our U.S. sites
• Capability to work with Internet-based P.O.
  processing and Delivery Scheduling.
• We understand that the Mexican Aerospace industry
  is in its first stages, so we provide support and
  training for our supplier base to achieve the
  necessary level. While we prefer Aerospace
  experience, were open to work with suppliers
  experienced in Automotive, Medical and other
  industries,