J.P. Morgan Diversified Industrials Conference. Dave Anderson Senior Vice President and CFO

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1 J.P. Morgan Diversified Industrials Conference 0 Dave Anderson Senior Vice President and CFO

2 Forward Looking Statements This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management s assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. 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. 1

Recent Highlights Clear Signs of Market Recovery - Great Positions In Good Industries Disciplined Cost Focus - Resources More

3 Honeywell Today 2010E Sales: ~$32B Portfolio Mix Automation & Control Systems 41% 33% 12% Transportation Systems 14% Specialty Materials Short Cycle 58% 42% Long Cycle Aerospace Global Footprint Rest of World US 49% 51% * Based on 2009 Sales Recent Highlights Clear Signs of Market Recovery - Great Positions In Good Industries Disciplined Cost Focus - Resources More Effective Continued Seed Planting - Winning Share with New Products & Technologies * Based on 2009 Sales 2 Diversified, Global Portfolio

4 1Q Financial Summary (M) 1Q09 1Q10 Sales $7,570 $7,776 3% Increase 3% F/X Segment Profit $876 $1,036 Margin % 11.6% 13.3% Net Income $397 $386 Attributable to Honeywell 18% Increase ACS +200 bps TS bps SM +300 bps 3% Decline EPS $0.54 $0.50 EPS, Ex-Pension $0.56 $0.68 7% Decline 21% Increase Ex-Pension Free Cash Flow $232 $ % Conversion 127% Ex Non-Cash Pension Strong Earnings Growth Ex-Pension 3

5 2Q Preview ($B) Sales Comments Aerospace ~ Sequential Commercial Improvement Defense Seasonal Uptick ACS ~ Short Cycle Upturn Continues Acq. +1% Estimated Impact Transportation ~ EU LV Production ~ Flat To 1Q FX Slight Headwind Specialty ~ Continued End Market Improvement Formula Pricing +4% Estimated Impact 2Q10 Sales ~$7.8B - $8.1B, Up 3-7% EPS $0.53 $0.57 4

6 2010 Update What We Are Seeing - Aerospace Stable Airlines aftermarket order rates improving Spares recovery in business aviation, flight activity increases D&S seasonal uptick on track in military OE, logistics services - ACS Short-cycle Continued Improvement General industrial recovery S&C, PPE, Gas Detection, Field Solutions Double-digit growth in emerging regions Industrial project delays, commercial still slow - TS And SM Performing Well Turbo strong 1H production rates and new launches SM continued end market improvement - No Indication of Orders Softening In Europe Continue to Monitor Closely Managing Cost Base Across SBG s and Corporate - Restructuring Benefits, Indirect Spend Savings Clear Signs Of Improvement 5

7 2010 Guidance Summary Consolidated ($B) Revenues $ % - 4% Segment Margin 13.6% % 30-60bps EPS $ (14)% - (19)% EPS, Excl. Pension* $ % - 9% Free Cash Flow $ (7)% - (16)% Conversion ~ 150% * Pension Expense Excluded from 2009 and 2010E 2010 Growth Financial Outlook 2010E vs Low End Slower Aero Recovery UOP Delays F/X Impact / Euro Market Softness High End + Larger Volume Rebound + New Products / EM Penetration + Greater Indirect and Labor Savings 6 1Q Strength Reflected In Current FY Outlook

8 Growth And Productivity Drivers 7 Favorable Macro Trends Energy Efficiency, Safety & Security, Globalization Commercial Excellence Focus Sales / Marketing / Transaction Pricing all Gaining Traction R&D Effectiveness Enabling Differentiation, Velocity Product Development (VPD) Strong New Product Pipeline Share Gains And Value Pricing Investing In High Growth Markets China, India A Much Bigger Opportunity Smart Acquisitions First Class Track Record Managing Cost Base And Census Enhanced Analytic, Organization Effectiveness (OEF) HOS Building Momentum Productivity Gain With Bronze HON Playbook Working

9 Seed Planting Aerospace Flight Efficiency / New ATM Helicopter Safety COMAC C919 Defense Logistics ACS Wireless Technology Gas Detection Energy Savings Performance Personal Protection Equipment Transportation Systems 45%+ Win Rate Last 3 Years Next Generation VNT TM Diesel, Gas, Hybrid Applications Aerospace Technology Sharing Specialty Materials Green Diesel Heavy Oil Hydrocracking Methanol-to-Olefins Low Global Warming Refrigerants 8 Investing For The Future

10 M&A Track Record : 60 Transactions, ~$6B Sales Acquired Significant Growth Platforms (Novar, UOP, Gas Detection, PPE) Disciplined Identification, Due Diligence, Valuation Highly Effective Integration Process Active Pipeline with SBG Ownership Performance Outstrips Valuation Models 9

11 Sperian Acquisition Strategic Rationale Highly Attractive, Fragmented and Growing $20B Space - Regulated by Codes & Standards Extends HON Leading PPE Positions - Creates ~$2B Global Franchise with Premium Brands Complementary with Gas Detection Robust Integration Process With Proven Acquisition Track Record - Significant Synergy Opportunities Expected Big Emerging Market Opportunity Key Financials Business Overview - Sales ~$900M - Attractive Sales and Margin Growth Potential - EPS Accretive 2011 Premium Positions Geographies Eye & Face 16% Other 8% Respiratory 26% Clothing 8% Americas 42% Fall Protection 22% Hearing 12% Gloves & Footwear 16% Great Fit With ACS Safety Products EMEA 50% 10

12 Managing Our Cost Base Cost Base % of revenue Key Focus Areas Material ~ 57% Sourcing Focus Indirect Material Usage and Price With Better Quality and Delivery Organizational Efficiency Depreciation ~ 26% ~ 3% 2010 Practices, Policies, Controls Best People, Organized the Right Way Disciplined Capital Spending Built Into HON s Management System 11

13 HOS Acceleration HOS Productivity Savings 290 Bronze Certified 100% HOS Deployment Duration 2009 AVG Months % % % Sites Bronze By 2012 Extend To Suppliers & Labs Quality & Reliability Differentiation Bronze Sites Delivering ~25% Productivity Boost Strong Foundation at New Sites All Start by 2011, Bronze by Key Contributor To Margin Expansion

14 Long Term Growth And Profit Outlook 5-Year Revenue Growth Growth Factors ~7% CAGR $41-45B 6-8%+ Growth Driven By New Products and Technologies (VPD ) $31B Favorable Macro Trends Energy Efficiency Year Segment Margin Growth Emerging Region Penetration Some Targeted Acquisitions ~60 bps per year 16-18% Strong Margin Expansion Improved Cost Structure 13.3% Volume Leverage HOS, FT, Repo Contributions Commercial Excellence Achievable Path To Performance Outlook

15 Cash Flow Outlook Cumulative Free Cash Flow Effective Deployment Dividends Share Repurchase ~$18 20B Acquisitions Debt Reduction With Lots Of Cash To Add Value 14

16 Summary Great Start to 2010 Notable Rates of Change in TS, SM, ACS Short-Cycle Clear Evidence Things Getting Better Increased Full-Year Guidance After 1Q Continued Short Cycle Improvement Strong Operating Leverage and Continued Margin Expansion Good Earnings Growth (Ex-Pension) Benefits of Seed Planting Continue Growth Investments, Key Initiatives, Repositioning 15 Bright Outlook For Honeywell

17 Appendix Reconciliation of non-gaap Measures to GAAP Measures 16

18 Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margin ($B) E Sales $30.9 $ $32.3 Cost of Products and Services Sold (23.2) (24.4) - (24.8) Selling, General and Administrative Expenses (4.3) (4.2) - (4.4) Operating Income $3.4 $2.9 - $3.1 Stock Based Compensation (1) Repositioning and Other (1, 2) Pension and OPEB Expense (1) Segment Profit $4.1 $ Operating Income $3.4 $2.9 - $3.1 Sales $30.9 $ $32.3 Operating Income Margin % 11.0% % Segment Profit $4.1 $ Sales $30.9 $ $32.3 Segment Profit Margin % 13.3% % (1) Included in cost of products and services sold and selling, general and administrative expenses (2) Includes repositioning, asbestos, environmental expenses and equity income 17

19 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities and Calculation of Cash Flow Conversion ($M) 1Q09 1Q10 Cash Provided by Operating Activities $341 $743 Expenditures for Property, Plant and Equipment (109) (70) Free Cash Flow $232 $673 Cash Provided by Operating Activities $341 $743 Net Income Attributable to Honeywell $397 $386 Operating Cash Flow Conversion % 86% 192% Free Cash Flow $232 $673 Net Income Attributable to Honeywell $397 $386 Free Cash Flow Conversion % 58% 174% 18

20 Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margin ($M) 1Q09 1Q10 Sales $7,570 $7,776 Cost of Products and Services Sold (5,756) (5,982) Selling, General and Administrative Expenses (1,152) (1,136) Operating Income $662 $658 Stock Based Compensation (1) Repositioning and Other (1, 2) Pension Expense (1) OPEB (Income) Expense (1) 29 (18) Segment Profit $876 $1,036 Operating Income $662 $658 Sales $7,570 $7,776 Operating Income Margin % 8.7% 8.5% Segment Profit $876 $1,036 Sales $7,570 $7,776 Segment Profit Margin % 11.6% 13.3% (1) Included in cost of products and services sold and selling, general and administrative expenses (2) Includes repositioning, asbestos, environmental expenses and equity income 19

21 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities and Calculation of Cash Flow Conversion ($B) 2010E Cash Provided by Operating Activities $3.5 - $3.8 Expenditures for Property, Plant and Equipment ~(0.7) Free Cash Flow $2.8 - $3.1 Cash Provided by Operating Activities $3.5 - $3.8 Net Income Attributable to Honeywell ~$1.9 Operating Cash Flow Conversion % ~190% Free Cash Flow $2.8 - $3.1 Net Income Attributable to Honeywell ~$1.9 Free Cash Flow Conversion % ~150% 20

22 Calculation of Cash Flow Conversion, Excluding Pension Expense ($M) 1Q10 Net Income Attributable to Honeywell $386 Pension Expense, net of tax 142 Net Income Attributable to Honeywell, Excluding Pension $528 Free Cash Flow $673 Net Income Attributable to Honeywell, Excluding Pension $528 Free Cash Flow Conversion %, Excluding Pension 127% 21

23 Reconciliation of EPS to EPS, Excluding Pension ($B) 1Q09 (1) 1Q10 (1) 2009 (1) 2010E (2) EPS $0.54 $0.50 $2.85 ~$ $2.45 Pension Expense ~ ~$0.77 EPS, Excluding Pension $0.56 $0.68 $2.95 ~$ $3.22 (1) Utilizes weighted average shares outstanding and the effective tax rate for the period. (2) Assumes weighted average shares outstanding of 780 million and a 26.5% effective tax rate for 2010 guidance. 22

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Goldman Sachs Global Industrials. Dave Anderson Senior Vice President and CFO

Goldman Sachs Global Industrials 0 Dave Anderson Senior Vice President and CFO Forward Looking Statements This report contains forward-looking statements within the meaning of Section 21E of the Securities