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Updated November 2018 TODAY’S HONEYWELL

Forward Looking Statements


This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking
statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and
industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this presentation are also subject to a number of material risks
and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking
statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal
risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

Information regarding the impact of Tax Legislation consists of preliminary estimates which are forward-looking statements and are subject to change, possibly materially. Information regarding the impact of
Tax Legislation is based on our current calculations, as well our current interpretations, assumptions and expectations relating to Tax Legislation, which are subject to further change.

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, a measure by which we assess operating performance, which we define as operating income adjusted for certain items as presented in the Appendix; segment margin, on an overall Honeywell basis,
which we define as segment profit divided by sales; organic sales growth, which we define as sales growth less the impacts from foreign currency translation, acquisitions and divestitures for the first 12
months following transaction date, and impacts from adoption of the new accounting guidance on revenue from contracts with customers that arise solely due to non-comparable accounting treatment of
contracts existing in the prior period; free cash flow, which we define as cash flow from operations less capital expenditures and which we adjust to exclude the impact of separation costs related to the spin-
offs of Resideo and Garrett, if and as noted in the presentation; and adjusted earnings per share, which we adjust to exclude pension mark-to-market expenses, as well as for other components, such as
separation costs related to the spin-offs, the 4Q17 U.S. tax legislation charge, and adjustments to such charge, if and as noted in the presentation. Other than references to reported earnings per share, all
references to earnings per share in this presentation are so adjusted. The respective tax rates applied when adjusting earnings per share for these items are identified in the presentation or in the
reconciliations presented in the Appendix. 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 metrics should be considered in addition to, and not as replacements for, the most comparable GAAP measure. Refer to the
Appendix attached to this presentation for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures.

© 2018 by Honeywell International Inc. All rights reserved.


At Honeywell, we are bringing together the physical and digital worlds
to tackle some of the toughest business and societal challenges.
We specialize in the things that are critically connected.
Beyond smart phones and laptops, we make the connections
that keep cities working, planes flying, factories running, and workers safe.

THAT’S THE POWER OF CONNECTED.


THAT’S THE POWER OF HONEYWELL.
Connected Aircraft | Connected Building | Connected Plant
Connected Utilities | Connected Supply Chain | Connected Worker

© 2018 by Honeywell International Inc. All rights reserved.


Honeywell Overview

NYSE: HON | ~970 sites | ~110,000 employees | Morris Plains, N.J. headquarters | Fortune 100

Performance Materials Safety and Productivity


Aerospace Building Technologies
and Technologies Solutions

Our products are used on virtually Our products, software, and We develop advanced materials, We improve enterprise performance
every commercial and defense aircraft technologies are in more than 10 process technologies, automation and worker safety and productivity
platform worldwide and include aircraft million buildings worldwide, helping solutions, and industrial software with our scanning and mobile
propulsion, cockpit systems, satellite customers ensure their facilities are that are revolutionizing industries computers, software, warehouse
communications, and auxiliary power safe, energy efficient, sustainable, around the world. automation solutions, and personal
systems. and productive. protective equipment.

© 2018 by Honeywell International Inc. All rights reserved.

Aligned to Key Global Macro Trends


Honeywell Performance: 2013-2018E
SALES SEGMENT MARGIN
$41.7B - $41.8B
$41.75B 19.5% - 19.6%
19.55%
18.9% 19.0%
$40.3B $40.5B 18.8% Ex-M&A

$39.1B $39.3B
$38.6B
16.6% 18.3%
16.3%

2013 2014 2015 2016 2017 2018E 2013 2014 2015 2016 2017 2018E

ADJUSTED EARNINGS PER SHARE FREE CASH FLOW


$5.8B - $6.2B
$6.0B
$7.95 - $8.00
$7.98
$7.15 $4.9B
$6.61 $4.4B $4.4B
$6.10 $4.0B
$5.59 $3.4B
$4.97

2013 2014 2015 2016 2017 2018E


2013 2014 2015 2016 2017 2018E (Adjusted)
All adjusted EPS figures exclude pension mark-to-market; 2016 EPS excludes 4Q16 debt refinancing; 2017 EPS excludes separation costs related to the spin-offs of GTX and REZI and the provisional charge related to tax
legislation; 2018E EPS excludes impacts from separation costs and adjustments to the 4Q17 U.S. tax legislation charge.

Adjusted FCF excludes impacts from separation costs related to the spin-offs.

Our reconciliations of non-GAAP measures to GAAP measures accompany this document and are also available at http://investor.honeywell.com.
© 2018 by Honeywell International Inc. All rights reserved.
Energy Efficiency and Clean Energy Generation

Honeywell invents and manufactures


technologies that address some of the Air Traffic
Biofuels
world’s most critical challenges around Modernization

energy, safety, security, productivity,


and global urbanization.
Low-Global-
Green Warming
Buildings Refrigerants
Honeywell’s Sustainable
Opportunity Policy outlines the
Company’s commitment to health, Clean Power & Industrial Process
safety, and the environment: Fuels Efficiency
ensuring a cleaner, safer, and
healthier future.
Demand Energy
Response & Performance
Smart Grid Contracts
© 2018 by Honeywell International Inc. All rights reserved.
Safety and Security

Honeywell equipment and


technologies can help keep an Security & Fire Industrial Process
emergency from becoming a Systems & Safety

tragedy, and our security solutions


protect against emerging threats.
Gas Monitoring & Honeywell
Cloud-Based Notification,
Detection Instant Messaging
Emergency Alert®

Honeywell’s Enhanced Ground Proximity


Warning System has reduced Controlled Flight
Into Terrain (CFIT) accidents from ~1 in every
Personal Protective
3 million flights to less than 1 in every 20 million. Cybersecurity Equipment
Honeywell Personal and Industrial Safety
Equipment serve more than 500 million people
around the world daily. SmartView3D
Intuvue™ ™

SyntheticHazard
Weather Vision&
System
Avoidance System Spectra® Fiber

© 2018 by Honeywell International Inc. All rights reserved.


Expanding Global Wealth Per Capita

Honeywell is developing
solutions that support Air Traffic Refining
Management Technologies
growing infrastructure and
improve the quality of life for
people around the world.
Airport Solutions Indoor Air Quality

The growing middle class is


expected to increase from Smart Grid Health and Safety
1.8 billion to almost 5 billion
people by 2030.
Infrastructure Petrochemical
Solutions Technologies

© 2018 by Honeywell International Inc. All rights reserved.


Worker Productivity

Honeywell solutions help


In-flight Industrial Scanning &
our customers’ workforces Productivity Mobile Computers
perform more efficiently
and productively.

Voice Controls Retail Scanning

Honeywell is an industry leader in


wireless and scanning technologies
used in building and OneWireless™ Mobile
Cockpit Systems
Control Room
industrial applications.

Connected Space
Warehouse Optimization

© 2018 by Honeywell International Inc. All rights reserved.


The Honeywell Portfolio
Process Technology Global Capacity Reputation
• HOS Gold • Honeywell Connected • ~20% of Sales in High • The Honeywell Brand
Enterprise Growth Regions
Leveraging Core • Honeywell User Experience • Honeywell Sentience • Customer Focus
(HUE) • HGR 2.0 Strategy
Strengths … (Common IT Platform)
• Integrity
(Becoming the Chinese
• Velocity Product Development • Shared Technology
Talent Centers Competitor, East-for-
East and East-for-Rest) • Employee Loyalty
• Centralized Supporting • Honeywell Technology
Functions Solutions

Aerospace Performance Materials Safety and


Building Technologies
and Technologies Productivity Solutions
… Across A
Diversified
Portfolio

© 2018 by Honeywell International Inc. All rights reserved.

Industry-Leading Businesses Unified Across Common Platforms


HOS Gold
Growth
Growth Innovation
• Common Set of Tools / Metrics to Drive and Manage Sales • ~9K Employees Developing Software; World-Class
Technologists Driving Innovation
• Value Proposition Development Rigor

• Rigor and Metrics for New Product Development


• Breakthroughs – New Adjacencies to Enhance
Growth Rate
• Honeywell User Experience Incorporated
Into Everything We Do
• Channel Program Design

Leverage Productivity

• Cross-Business Technology Development • Word-Class Working Capital Management

• Cross-Business Selling • HOS Drove >200 bps Margin Expansion Over


Last 3 Years*

• One-Honeywell Leverage: We Use What We Sell • OEF Management Drove ~80 bps Fixed-Cost
Improvement Over the Last 5 Years*

*Data as of April 2018 © 2018 by Honeywell International Inc. All rights reserved.
• Cross-Honeywell Warehouse Strategy Optimization

Differentiated Operating System Drives Value Creation in All Businesses


Aerospace

With comprehensive offerings ranging


from connectivity systems and services,
satellite communications and cockpit
systems, to propulsion and wheel and
braking systems, Honeywell Aerospace
products and services are used on
virtually every commercial and defense
aircraft platform.

Businesses: Technologies:
• Electronic Solutions • Air and Thermal Management
• Engines and Power Systems • Cockpit and Flight Management Systems
• Mechanical Systems and Components • Connectivity Systems and Connected Aircraft Services
• Services and Connectivity • Federal Solutions Management and Operation
• Mechanical Components
• Navigation Systems and Sensors
Headquarters:
Phoenix, Arizona • Propulsion and Power Systems
• Runway and Flight Safety Technology
• Wheels and Braking Systems
$11.6B • Satellite Applications
2017 Sales

© 2018 by Honeywell International Inc. All rights reserved.


Building Technologies

Building Technologies creates products,


software, and technologies found in more
than 10 million buildings worldwide.
Commercial building owners and
occupants use our technologies to ensure
their facilities are safe, energy efficient,
sustainable, and productive.

Businesses: Technologies:
• Building Management Systems • Building Comfort and Control Systems
• Building Products • Fire Alarm Systems and Detection
• Building Solutions • Smart City Command and Control Solutions
• Greater China / APAC (Regional operation) • Video Management and Security
• Latin America (Regional operation) • Air and Water Purification
• Access and Intrusion Control
Headquarters:
Atlanta, Georgia

$5.3B
2017 Sales

© 2018 by Honeywell International Inc. All rights reserved.


Performance Materials and Technologies
Performance Materials and Technologies (PMT)
is a global leader in providing advanced materials,
process technologies, and automation solutions.
PMT delivers high-performance solutions,
including low-global-warming-potential
refrigerants, automation and software for process
industries, and process technologies for the
refining, petrochemical, and gas processing
industries.

Businesses: Technologies:
• Advanced Materials • Advanced Fibers and Composites
• Honeywell Process Solutions • Chemicals and Electronic Materials
• Honeywell UOP • Connected Plant and Software
• Industrial Automation Controls
• Low-Global-Warming Potential Refrigerants
Headquarters: • Oil and Gas Process Technology, Equipment, Catalysts, and Services
Morris Plains, New Jersey
• Smart Energy
• Specialty Films and Additives
$10.3B
2017 Sales
© 2018 by Honeywell International Inc. All rights reserved.
Safety and Productivity Solutions
Safety and Productivity Solutions (SPS) provides products,
software, and connected solutions that improve productivity,
workplace safety, and asset performance for customers across
the globe. We deliver on this promise through industry-leading
mobile devices, software, cloud technology, and automation
solutions; the broadest range of personal protective equipment
and gas detection technology; and custom-engineered sensors,
switches, and controls. We also manufacture and sell a broad
portfolio of footwear for work, play, and outdoor activities,
including XtraTuf™ and Muck Boot™ brand footwear.

Businesses: Technologies:
• Honeywell Industrial Safety • Automation and Material Handling Solutions
• Honeywell Intelligrated • Footwear for Work, Play, and Outdoor Activities
• Productivity Products • Gas Detection Technology and Custom-Engineered Sensors, Switches,
and Controls
• Retail
• Personal Protective Equipment for Industrial / Firefighting Applications
• Sensing and Internet of Things
• Printing, Scanning, and Mobile Devices for Data Collection
Headquarters: • Workflow Software and Mobile Cloud Technology
Fort Mill, South Carolina

$5.6B
2017 Sales
© 2018 by Honeywell International Inc. All rights reserved.
Honeywell Connected Enterprise is a centralized,
internal organization that serves as the software-
innovation engine for all of Honeywell

Headquartered in Atlanta, Georgia

Works with businesses and customers to build the


world’s best software solutions rapidly and efficiently

Co-located product management and software


engineering teams

Software and services in Aircraft, Building, Cyber,


Plant, and Worker

Fosters entrepreneurialism and creativity, focused on


developing IoT offerings with big customer impact

© 2018 by Honeywell International Inc. All rights reserved.


Technology and Innovation
18,000 Engineers
18,000
Engineers
Worldwide 49% Software

~9,000
Software
Developers
24% Mechanical

138
Research and 22% Electrical
Engineering
Facilities

35,500+ 5% Chemical
Patents Granted
or Pending

© 2018 by Honeywell International Inc. All rights reserved.


Sustainable Opportunity
Making our
businesses more
>65% environmentally
Reduction in our friendly, safer, and
greenhouse gas
emissions more sustainable
2004-2017

~60%
Increase in our
energy efficiency
2004-2017

120M
Gallons of water
conserved in By 2019, Honeywell will reduce our global
“water-stressed areas” greenhouse gas emissions by an additional 10%
per dollar of revenue from our 2013 levels.

© 2018 by Honeywell International Inc. All rights reserved.


Media Highlights

Honeywell Tops Electronics Industry on Fortune’s Darius Adamczyk Became CEO on March 31, 2017: Honeywell Donates $2 Million in Safety
2017 “World’s Most Admired Companies” “The way we're going to continue to differentiate ourselves Equipment After Hurricane Harvey
versus other industry players … is by technology.”

Honeywell Announces Planned Portfolio Changes: Honeywell’s Que Dallara Named One of Honeywell Ranked As 2017 “Best for Vets”
“Honeywell's move to create two new stand-alone Diversity Journal’s “Women Worth Watching” Employer by Military Times
publicly traded companies is a very smart move.”
— Jim Cramer, CNBC, “Mad Money”
© 2018 by Honeywell International Inc. All rights reserved.

Influential International and Domestic Coverage and Recognition


19

Honeywell Hometown Solutions


HHS Unique, global corporate Aligning with Supporting employee
146 awards since 2004
Summary citizenship programs business strategies communities

More
Smarter Safer
Sustainable

• Science and math education focus • 3 million students fire-safety • Modern urban sustainability
trained in China, India, and education in New Jersey and
• 20 teachers annually learn coding Malaysia Mexico City Humanitarian Relief
and earn Georgia STEM School
Certification at Georgia Tech • 6,000 students in Malaysia • 135 Safe drinking water stations • $13.2 million in donations
received safety training built in rural India serving 300,000 distributed to-date
• More than 3,000 teachers
worldwide received thermal • 1 million U.S. students learn • Water filtration systems serve • Beneficiaries: 2,278 employees
design, coding training at USSRC personal safety and abduction- 3,000 students and 60 teachers in (multiple communities)
prevention with KidSmartz China • Repaired or rebuilt since 2001*
• 5,000 students in UAE attended
Think Science and other education • 25,000 students, 1,000 teachers, • Wildlife habitat restoration projects - 900 homes
programs in partnership with and 40,000 parents expect by employees in Syracuse - 4 schools
Emirates Foundation and INJAZ disaster management training by - 9 medical clinics
2020 in India • Urban pollution stewardship in
- 1 elder community center
• 10,000+ students focused on IoT Baltimore neighborhoods,
technologies utilize Honeywell schoolyards
- 200 wells
Control Labs in five universities in
Turkey, Romania, and Indonesia
© 2018 by Honeywell International Inc. All rights reserved. *as of November 2018

Delivering High-Impact Social Sustainability Global Programming


Reconciliation of Non-GAAP
Measures to GAAP Measures

© 2018 by Honeywell International Inc. All rights reserved.


Reconciliation of Segment Profit to Operating Income and
Calculation of Segment Profit and Operating Income Margins

($M ) 2015 2016 2017


Segment profit $7,256 $7,186 $7,690

(1)
Stock compensation expense (175) (184) (176)
(2,3)
Repositioning and other (569) (674) (962)
Pension and other postretirement service costs (4) (311) (277) (249)
Operating income $6,201 $6,051 $6,303

Segment profit $7,256 $7,186 $7,690


÷ Net sales $38,581 $39,302 $40,534
Segment profit margin % 18.8% 18.3% 19.0%

Operating income $6,201 $6,051 $6,303


÷ Net sales $38,581 $39,302 $40,534
Operating income margin % 16.1% 15.4% 15.5%

(1) Amounts included in Selling, general and administrative expenses.


(2) Includes repositioning, asbestos, environmental expenses and equity income adjustment.
(3) Included in Cost of products and services sold, Selling, general and administrative expenses, and Other income/expense.
(4) Amounts included in Cost of products and services sold and Selling, general and administrative expenses (service costs). (Note - Other income/expense includes non-service cost components).

Certain amounts in the prior year reconciliation have been reclassified to conform with current year presentation, including changes made due to the adoption of the accounting standard related to classification of pension and other
postretirement benefit costs.

We define segment profit as operating income, excluding stock compensation expense, pension and other postretirement service costs, and repositioning and other charges. 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 segment profit, on an overall Honeywell basis, to operating income has not been provided for all forward-looking measures of segment profit and segment margin included herewithin. 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.

© 2018 by Honeywell International Inc. All rights reserved.


Reconciliation of Segment Profit to Operating Income and
Calculation of Segment Profit and Operating Income Margins

($M ) 2013 2014


Segment profit $6,351 $6,696

(1)
Stock compensation expense (170) (187)
(2,3)
Repositioning and other (702) (590)
(4)
Pension ongoing income 90 254
(4)
Pension mark-to-market adjustment (51) (249)
(4)
OPEB expense (20) (49)
Operating income $5,498 $5,875

Segment profit $6,351 $6,696


÷ Net sales $39,055 $40,306
Segment profit margin % 16.3% 16.6%

Operating income $5,498 $5,875


÷ Net sales $39,055 $40,306
Operating income margin % 14.1% 14.6%

(1) Amounts included in Selling, general and administrative expenses.


(2) Includes repositioning, asbestos, environmental expenses and equity income adjustment.
(3) Included in Cost of products and services sold, Selling, general and administrative expenses, and Other income/expense.
(4) Included in Cost of products and services sold and Selling, general and administrative expenses.

Amounts have not been reclassified to conform with current year presentation and do not include changes made due to the adoption of the accounting standard related to classification of pension and other postretirement benefit costs.

We define segment profit as operating income, excluding stock compensation expense, pension and other postretirement service costs, and repositioning and other charges. We believe these measures are useful to investors and
management in understanding our ongoing operations and in analysis of ongoing operating trends.

© 2018 by Honeywell International Inc. All rights reserved.


Reconciliation of EPS to Adjusted EPS

2013(1) 2014(2) 2013(1)2015(3) 2014(2) 2016(4)2015(3) 2017(5) 2016(4)2018E 2017(5)


e of common stock
Earnings
- assuming
per share
dilution
of common
(EPS) stock - assuming dilution (EPS) $4.92 $5.36 $4.92 $6.04 $5.36 $6.21 $6.04 $2.00 $6.21 TBD $2.00
market expensePension mark-to-market expense 0.05 0.23 0.05 0.06 0.23 0.28 0.06 0.09 0.28 TBD 0.09
xpense Debt refinancing expense - - - - - 0.12 - - 0.12 - -
Separation costs - - - - - - - 0.02 - TBD 0.02
17 U.S. tax legislation
Adjustments
charge
to 4Q17 U.S. tax legislation charge - - - - - - - 5.04 - TBD 5.04
Adjusted EPS $4.97 $5.59 $4.97 $6.10 $5.59 $6.61 $6.10 $7.15 $6.61~$7.95 - $8.00 $7.15

(1) Utilizes weighted average shares of 797.3 million. Pension mark-to-market expense uses a blended tax rate of 25.5%.
(2) Utilizes weighted average shares of 795.2 million. Pension mark-to-market expense uses a blended tax rate of 28.1%.
(3) Utilizes weighted average shares of 789.3 million. Pension mark-to-market expense uses a blended tax rate of 36.1%.
(4) Utilizes weighted average shares of 775.3 million. Pension mark-to-market expense uses a blended tax rate of 21.3% and debt refinancing expense uses a tax rate of 26.5%.
(5) Utilizes weighted average shares of 772.1 million. Pension mark-to-market expense uses a blended tax rate of 23%.

We believe Adjusted EPS is a measure that is 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, the separation costs given the
inherent uncertainty of the estimates, and any adjustments to the charge from 4Q17 U.S. tax legislation as the charge is provisional. We therefore do not include an estimate for the pension mark-to-market expense, separation costs, or
adjustments to 4Q17 U.S. tax legislation charge in this reconciliation. Based on economic and industry conditions, future developments and other relevant factors, these assumptions are subject to change.

© 2018 by Honeywell International Inc. All rights reserved.


Reconciliation of Cash Provided by Operating Activities to Adjusted Free Cash Flow

2013 ($M) 2014 ($M) 2013


2015
($M)($M) 20142016
($M) ($M) 20152017
($M) ($M) 2016 ($M)($B) 2017 ($M)
2018E 20
erating activitiesCash provided by operating activities $4,335 $5,080 $4,335
$5,519 $5,080 $5,498 $5,519 $5,966 $5,498
~$6.2 - $6.8 $5,966 ~
Expenditures for property, plant and equipment
perty, plant and equipment (947) (1,094) (947)
(1,073) (1,094) (1,095) (1,073)(1,031) (1,095)
~(0.9) (1,031)
Free cash flow 3,388 3,986 3,3884,446 3,986 4,403 4,446 4,935 4,403
~$5.3 - $5.9 4,935 ~
ments Separation cost payments - - 2013- ($M)
- 2014- ($M)- 2015- ($M)- 2016- ($M)
~$0.3 - $0.5 2017- ($M) 2~
ow Cash provided
Adjusted by operating
free cash flow activities $3,388 $3,986 $4,335
$3,388
$4,446 $5,080$4,403
$3,986 $5,519$4,935
$4,446 $5,498
$4,403
~$5.8 - $6.2 $5,966
$4,935 ~
Expenditures for property, plant and equipment (947) (1,094) (1,073) (1,095) (1,031)
s cash provided by Free cash
Weoperating
define free flow
cash flow
activities lessascash
cashexpenditures
provided by operating activities
for property, less
plant and cash expenditures for property, plant and equipment.
equipment. 3,388 3,986 4,446 4,403 4,935
Separation cost payments - - - - -
We believe
is useful to investors that this metric
and management as aismeasure
useful to of
investors and management
cash generated as operations
by business a measure that
of cash generated
will be used to by business
repay operations
scheduled that will be
debt maturities used
and canto
berepay
usedscheduled
to invest indebt maturities
future growth and can be used to invest in future growth
Adjusted free cash flow $3,388 $3,986 $4,446 $4,403 $4,935
through
elopment activities new business
or acquisitions, development
pay dividends, activities stock
repurchase or acquisitions, payobligations
or repay debt dividends, repurchase
prior to their stock or repay
maturities. debt
This obligations
metric can alsoprior to their
be used to maturities.
evaluate ourThis metric
ability can alsocash
to generate be used
flow to evaluate our ability to generate cash flow from
from
business
he impact that this operations
cash flow has on ourand the impact that this cash flow has on our liquidity.
liquidity.
We define free cash flow as cash provided by operating activities less cash expenditures for property, plant and equipment.

We believe that this metric is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth
through new business development activities or acquisitions, pay dividends, repurchase stock or repay debt obligations prior to their maturities. This metric can also be used to evaluate our ability to generate cash flow from
business operations and the impact that this cash flow has on our liquidity.

© 2018 by Honeywell International Inc. All rights reserved.


Calculation of Segment Profit Margin Excluding Mergers and Acquisitions

($M ) 2016
Segment profit excluding mergers and acquisitons $6,980
÷ Net sales excluding mergers and acquisitions $37,023
Segment profit margin excluding mergers and acquisitons % 18.9%

© 2018 by Honeywell International Inc. All rights reserved.

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