Introduction. Dave Cote Chairman and CEO. Introduction

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Evolution Of Investor Expectations Can HON Operate As One Company? HON Consistently Delivering Will HON Resolve The Legacy Issues? Will HON Blow The Cash?

2 Evolution Of Investor Expectations Can HON Operate As One Company? HON Consistently Delivering Will HON Resolve The Legacy Issues? Will HON Blow The Cash? Asbestos / Environmental Steady Pension Accounting Change Can HON Meaningfully Expand Margins? Disciplined M&A Approach Returned Cash To Shareholders (Dividends + Share Buybacks) Will The Strategies Change In The Downturn? 2011 vs. 2003: Up +410 bps 2011 vs. 2007: Up +110 bps Will HON Achieve The 2014 Targets? On Track Continued Seed Planting, NPI Managed Costs, Held Margin Rates Does Honeywell Deserve A Premium Multiple?

3 Why A Premium Multiple Honeywell Transformation Delivering Results - Strong Financial Track Record - Did What We Said We Would Do - Delivering Top Of The Heap Stock Price And Shareholder Value Consistent Execution of Strategy - Leadership In Place, Playbook Is Working - Better Portfolio, More Efficient Operations - More Upside From Key Initiatives M&A, HOS, VPD, FT Evolution Will Continue Best Is Yet To Come - Great Positions: NPI/VPD Driving Greater Value - Good Industries: Macro Trends Provide Tailwind For Growth - Achieve 2014 Targets Differentiate HON Honeywell Continues To Outperform 2

4 Financial Strength Last 10 Years +72% +13pts +101% +100% $4.05 $36.5 $3.7 54% $ % $2.01 $ Sales $B Sales Outside The U.S. EPS (Proforma)* FCF $B ** * Proforma Excludes one-time / unusual charges; **FCF Prior to U.S. Cash Pension Contributions Significant Growth In All Key Metrics 3

5 Shareholder Return Stock Price Appreciation 2,350 Dividend Growth* HON +84% $ ,150 1,950 1,750 HON +98% $1.49 $32.65 S&P +26% 1,550 1,350 $0.75 S&P +78% 1, /19/2002 2/17/2012 HON S&P 500 Outpacing Overall Market HON S&P 500 Returning Greater Value To Shareholders Through Dividend Increases 4 * Based on (dividend yield)*(share price) as of 12/31/2002 and 12/31/2011 Great Return To Shareholders

6 A Decade Of Transformation HON Evolution 5 Initiatives Will Be Core To HON s DNA Addressing The Portfolio Addressing The Legacy Issues HOS, VPD, And FT Are Working Still A Lot Of Opportunity To Grow HON Performs In Good Times And Bad We ll Keep Seed Planting In Downturn Ready To Capitalize On The Recovery We Will Hit Our 2014 Targets The Best Is Yet To Come! Then What You Should Expect HON Evolution Past IS NOT Prologue Needed To Build A Solid Foundation, New Track Record Now Past IS Prologue Expect Top Tier Performance To Continue Consistency Of Strategy Leads To Amazing Results 5

7 The Evolution Continues What Stays The Same Execution Fundamentals - Focus On Basics Go Slow To Go Fast - Make Sure The Machinery Works - Do What We Say We re Going To Do - Achieve Two Seemingly Conflicting Things - Disciplined M&A - Trick Is In The Doing Robust Future - Seed Planting, Look Beyond This Quarter - Cash Generation Focus - Conservative Bookkeeping Strong Portfolio - Diversity Of Opportunities - Technology Differentiates - Avoid Rapidly Changing Technology Stay Hungry, Stay Smart, Stay Disciplined, Stay Flexible Strategies Evolve Great Positions In Good Industries - Divestitures Less Critical One Honeywell - Good Now Can Always Be Better Five Initiatives - Growth - Productivity - Cash - People - Enablers All Have Lots More Opportunity - A Long Runway Ahead Of Us Investor Returns Continue 6

Great Positions In Good Industries (GPGI) Globalization

Great Positions - Enable HON To Grow Sales Faster Than

Geographic Growth, Technology Leadership In Good

Favorable Macro Trends - Good Balance Of Short And Long

Acquisitions: Targeting Smart, High Growth Adjacencies -

8 Great Positions In Good Industries (GPGI) Globalization Safety & Security Energy Efficiency Energy Generation Great Positions - Enable HON To Grow Sales Faster Than The End Markets We Serve - Supported By New Product s, Geographic Growth, Technology Leadership In Good Industries - Provide A Tailwind For Growth By Leveraging Favorable Macro Trends - Good Balance Of Short And Long Cycle Businesses Disciplined Portfolio Management - Acquisitions: Targeting Smart, High Growth Adjacencies - Divestitures: Exiting Non-Core, Slow Growth, Commodity Businesses 7 Tailwind For Growth

9 GPGI Examples AERO ACS PMT TS Globalization Safety & Security Energy Efficiency Energy Gen Globalization Safety & Security Energy Efficiency Energy Gen Globalization Safety & Security Energy Efficiency Energy Gen Globalization Safety & Security Energy Efficiency Energy Gen Global OE Wins Outpacing Platform Growth Mix Shift To High Growth Regions Unmatched Safety And Efficiency Wins D&S International Opportunities Top Tier Leadership Position Across Segments New Products Driving Growth, Pricing Opportunity 50% of Growth Coming From High Growth Regions ACS Portfolio Strongly Linked to Energy Efficiency Refining / Petrochemical / Gas Investment Leading Global Resins Supplier New Products / Molecules / Refrigerants Regulations Providing Tailwind Fuel Efficiency And Emissions Legislation Win Rate Exceeds Launches In All Segments Global Turbo Penetration Multiyear High Leveraging Linkages With Other SBGs HON Well Aligned With Strong Macro Trends 8

10 GPGI: Portfolio Transformation 9 Building Growth Profile Of The Company

11 GPGI: M&A Growth Profile Key Acquisitions Key Divestitures Great Position Novar (ACS) UOP (PMT) First Technology (ACS) Handheld, Metrologic, EMS (ACS) Norcross (ACS) Sperian (ACS) EMS (Aero) Good Industry Building Controls Energy Infrastructure Growth Outlook 5-7% 8-10% Gas Detection 6-8% Customer Productivity Personal Protection Personal Protection Satellite Communications 5-7% 6-8% 6-8% 5-7% OK Position OK Industry Fit Plastics (PMT) Consumer Products (ACS) Security Monitoring (ACS) Industrial Waxes (PMT) Nylon (PMT) Consumable Solutions (Aero) CPG (TS) Engineering Plastics Fans, Heaters, Etc. Security Industrial Additives Carpet Fibers Aero Fasteners Consumer Auto Adding Higher Growth Technology / Engineering Driven Core To Honeywell 10 Annual Sales $10B Since 2002 Exiting Slower Growth Commodity / Low Tech Non-Core To Honeywell Annual Sales $6B Since 2002 M&A Fundamentally Improving Growth Profile

12 One Honeywell Operate As One Company - Reinforced Continually - Glue-Building Through Functional Councils, Senior Leadership Meeting, Process Enablers, Global Town Halls, And Awards Robust Management Resource Review (MRR) - Three Times Annually For Top Very Robust Succession Planning - CEO / HR Leader Interview Final Candidate For Top 200 Getting The Fundamentals Right - Goal Deployment Before Year-End - Appraisals Before March 31 - Salary And Bonus Differentiation Curves 11 Common Tools And Goals Driving One Honeywell

13 Growth: From / To New Products Global Expansion (% Of HON Sales) High Growth Regions ~$7B 500+ Launches Per Year 41% 54% ~17% CAGR Cupboards Bare 59% 46% ~$2B From To From To From To U.S. Non-U.S. China & India Other HGR Seed Planting Expanding Internationally Exposure To Fast Growing Economies 12 Pace Continues

14 Growth: Top Programs Globalization & Productivity Safety & Security Energy Efficiency 2014 Incremental Sales $2B+ $2B+ $1B+ Growth Program Refining Technologies Heavy Oil / Sour Gas New Aero Platform Wins Wireless Solutions Air Traffic Management Leader Flight Safety Products Personal Protection Equipment / Gas Detection Homes & Buildings Safety Products Low Global Warming Potential Products Smart Grid / Demand Response Energy Management Services Next-Generation Turbos Energy Generation $1B+ Natural Gas Storage / Distribution / Treatment Renewable Green Energy Shale Gas Lithium-Ion Batteries Investments Aligned With Favorable Macro Trends 13

15 Growth: Research And Development RD&E Investment $1.8B EM DM Census ~22K $1.1B ~12K New Patents Spend Up ~60% Patents 1,045 ~33K ~20K Patent Base Resources Up >75%, Deployed Smartly R&D Effectiveness Robust Velocity Product Development - VPD An Integrated, Cross HON Strategy - Platform Strategy In Every SBG - Software Reuse, Simulation Tools - CMMI: 50%+ Engineering / Software Focused Higher Value, Reduced Cycle Time - Differentiated Offerings That Are Valued - Right Products On Time, Every Time Effective Use Of R&D To Drive Margin Expansion

16 Growth: Following Our Own Message Safety Energy Intensity Greenhouse Gases Standardized Injury Rate (TCIR) (EE / Sales $) (Green House Gas Units) HON 70% Lower! ~35% More Efficient ~55% Less Emission Industry Average HON Ahead Of TCIR Target Using HON Products, Consistent Stds Incorporated Into HOS Expanding Safety Services Model Driving EE Through HON Tech Energy Savings From Projects ~$20M (Annualized) Most Project Paybacks ~1 Yr Helping Us Grow HBS / Utility Partnerships Piloting Automated DR Set Aggressive Public Targets Met Them Ahead Of Plan HON Technologies Enabling Further Improvements 15 Sustainability A Cornerstone Of HON Culture

17 Productivity: More Efficient Footprint Rooftop Consolidation Regional Footprint Sales $25.6B $36.5B $20.7 ~600 Net M&A ~35% Improvement ~(550) Consolidations $28.0 Developed 48M 47M $607 $499 Emerging $358 $518 ~1,250 ~1,300 14M 7M Then Acquisitions Consolidations Now Then DM Now DM (skip) Then Then EM Now Now EM Note: As Reported 16 Rooftops Sales ($M) / Rooftop Aggressively Integrating Acquisition Footprint Footprint (M SqFt) Sales $ / SqFt Aligning Footprint For Global Growth Supporting Profitable Global Expansion

18 Productivity: Census Management Census OEF Total +25% Developed Emerging (4%) +159% Then Now Headcount Organizational Efficiency 108K 135K E 88K 84K E 20K 51K E Satisfy Competing Objectives - Maximize Labor Cost Efficiency - Maintain High Quality Talent Common Tools And Processes - Global HR Reporting Tool - Fixed / Variable OEF - OEF By Function - OEF Walks 2012E vs. 2003: Sales ~75% EPS ~190%* Optimizing Total Employee Cost * Proforma Excludes Mark-to-Market pension adjustments More Efficient, More Effective Organization 17

19 Inflation Productivity: Material Cost Strategies Impact Internal Focus: Manage Cost And Consumption - Value Engineering Devoted To Driving Projects That Reduce Cost - Expand Sourcing In Emerging Markets - Mitigate Commodity Exposure Through Alternative Materials, Pass Through Pricing, Hedging $32.4B Direct Material 40.6% Indirect 13.4% Productivity $36.5B Direct Material 41.4% Indirect 13.1% External Focus: Manage Suppliers - Outsource Non-Strategic Spend - Focus On Supplier Quality And Development - Partnering To Improve Supplier Performance OEF 28.7% Depreciation OI 13.9% +80 bps OEF 27.9% Depreciation OI 14.7% Relentless Focus On Quality, Cost And Consumption 2010 Improving Margins 2011 Effective Cost Management 18

20 Cash: Generation Free Cash Flow Working Capital Turns ($B) +100% FCF Conversion HOS, Cycle Time Drives Further Improvement $ $ FCF Conversion Averaged ~130% Since 2003 Operating Disciplines = High Quality Earnings ~$3B Cash From WC Turns Improvement Cycle Time Improvement Opportunity FCF and FCF Conversion shown prior to U.S. cash pension contributions Continued Strong Cash Generation 19

21 Cash: Deployment $29B From To ~$14-16B Dividends 24% Share Buy Back 34% Net M&A 20% CAPEX 22% Significant Cash Returned To Shareholders Opportunistic, No Must Haves/Sells Reinvestment Ratio >1 Dividends ~25% Share Buy Back, Net M&A, Other ~50% CAPEX ~25% Note: Deployment percentages based on cash flow from operations net of other cash flow activities, primarily change in debt Cash Providing Flexibility To Generate Excess Returns 20

22 People: Performance Culture Short Term Incentive Program Bonus Plan Annual Covers 700 People 20% Of Top Mgmt Comp Improving Alignment With Shareholders Then Income Measurement Criteria Income + Cash Now Income + Cash + Working Capital Medium Term Long Term Growth Plan Biennial Senior Leadership 20% Of Top Mgmt Comp Equity Weighting And Options Focus Increases With Level 40% Of Top Mgmt Comp Organic Sales + ROI Organic Sales + ROI + Margin Expansion Options Focused More Weight For Top New For 2012 Margin Rate Growth Emphasized In Growth Plan 21

Payout People: Growth Plan Evolution 2012 2013 Cycle Targets Growth Plan Formula Evolving Half Organic Sales Growth Half ROI 1/3 rd Margin Expansion 1/3 rd Organic Sales Growth 1/3 rd ROI New For

23 Payout People: Growth Plan Evolution Cycle Targets Growth Plan Formula Evolving Half Organic Sales Growth Half ROI 1/3 rd Margin Expansion 1/3 rd Organic Sales Growth 1/3 rd ROI New For Actual Segment Margin: 14.7% Cumulative Margin Expansion: ~130 bps 2014 Target Segment Margin: 16-18% 200% 100% 50% Growth Plan Targets Aligned To Shareholder Returns 22 Note: Excludes M&A From To Linked To Shareholder Interest Aligned To 2014 Targets

24 FOUNDATION Enablers: Common Tools And Processes Then Lean Enablers Building On Prior Expertise Now Honeywell Operating System Benefits Honeywell Operating System (HOS) - Driving Sustainable Improvements In Safety, Quality, Delivery, Cost, And Inventory Management - Providing A Rigor That Improves Service To The Customer And Value To Honeywell Six Sigma Functional Transformation Functional Transformation (FT) - Creating One Honeywell, Common Processes, Lowering Overhead - FT Success Enabled By ERP 23 Digital Works Velocity Product Development Velocity Product Development (VPD ) - Business Led Cross-Functional Approach - Driving Value For The Customer, Margin Expansion For Honeywell Dramatic Results Already, Still More Opportunity

25 Honeywell Operating System % Of Manufacturing Cost Base Certified % HOS Deployment 100% Continuous Improvement Beyond The 4 Walls Of The Factory Maturity Yields Integrated Business Model Performance Differentiation % Accelerating Bronze Deployment Company 100% By 2014 HOS Framework Evolves Over Time Four Walls Of The Factory Cross Functional Integration Speed To Market Total Business System Full Scale Deployment Lean, 6σ Culture Building Deployment Skills Bronze SIOP / Procurement Silver New Products, VPD 25% Productivity Increase 80% Quality Improvement Gold Setting The Bar High Sustaining Performance Accelerated Deployment, Continuous Improvement 24

26 FT And ERP FT ERP ($B) ($B) 120% 9.5% % 100% 6.3% 5.5% % 80% $1.5 80% 60% $1.0 40% $0.5 20% FT Cost % of Sales Net ERP Benefit (Cum) % of Rev on SAP 0% Finance, HR, IT, And Sourcing FT % Of Sales Down (320) bps Since 2004 ~70% Of Honeywell Sales On SAP Early Benefits, Bigger Benefits To Come 25 Common Processes Continue To Yield Benefits

27 Long-Term Outlook At The Halfway Point ($B) Sales Segment Margin Long Term Goal: 6-8% CAGR 09-12: 8 9% CAGR Long Term Goal: bps 09-12: bps $30.0 $32.4 $36.5 $ $ % 13.9% 14.7% % % On Track To Achieve Long-Term Targets 26

28 The Best Is Yet To Come Building Off Of An Increasingly Robust Foundation - Accelerated Outperformance From HON During Last Two Years Strategies Will Continue To Evolve To Meet Business Needs - Expectation Of Top Tier Performance Is Constant Great Positions In Good Industries - Solid Portfolio Well Aligned To Leverage Key Macro Trends More Upside From Initiatives - HOS, Acquisition Integrations, Repositioning Benefits On Track To Achieve 2014 Targets, Robust Future Beyond - Seed Planting For Future Growth, Driving New Products And Technologies 27 Last 10 Years Great, Next 10 Will Be Even Better

Today s Presenters Automation and Control Solutions Roger

Technologies Andreas Kramvis President and CEO Transportation

Acquisitions Anne Madden VP Global Mergers and Acquisitions

Shankland VP and CTO Performance Materials and Technologies

Honeywell Operating System Pasquale Abruzzese VP

Aerospace, Integrated Supply Chain Shane Tedjarati President

29 Today s Presenters Automation and Control Solutions Roger Fradin President and CEO Performance Materials and Technologies Andreas Kramvis President and CEO Transportation Systems Alex Ismail President and CEO Growth Through Acquisitions Anne Madden VP Global Mergers and Acquisitions Mark Levy President Life Safety R&D Effectiveness Ian Shankland VP and CTO Performance Materials and Technologies Aerospace Tim Mahoney President and CEO High Growth Regions Honeywell Operating System Pasquale Abruzzese VP Transportation Systems, Integrated Supply Chain Mike Owens VP Aerospace, Integrated Supply Chain Shane Tedjarati President and CEO Financial Overview Dave Anderson Senior VP and CFO Moderator, Q&A Elena Doom VP Investor Relations 28

Vertical Research Partners

Vertical Research Partners Dave Cote Chairman and CEO August 2, 2011 Forward Looking Statements This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange