Honeywell Aerospace HS&E…An Integrated Business Partner Scott Harczynski Vice President HSE and Facilities April 27, 2016

Honeywell Proprietary Honeywell.com  2015 N Wuhan, China Xiamen, China Bucharest, Romania Presov, Slovakia Olomouc, Czech Republic Brno-Slatina, Czech Republic Prague, Czech Republic Atessa, Italy Maintal, Germany Raunheim, Germany Toulouse, France Thaon-les-Vosges, France Rolle, Switzerland Aerospace Global Footprint South Bend, IN Coon Rapids, MN Minneapolis, MN Golden Valley, MN Plymouth, MN Kansas City, MO Olathe, KS Wichita, KS Everett, WA Renton, WA Redmond, WA Garden Grove, CA Torrance, CA Mexicali, Mexico Glendale, AZ Phoenix, AZ – 34 th Street – Deer Valley – Sky Harbor Tempe, AZ Kingman, AZ Tucson, AZ Chihuahua, Mexico Albuquerque, NM Monterrey, Mexico Houston, TX Tulsa, OK Memphis, TN Anniston, AL Clearwater, FL Sarasota, FL Plymouth, MI Urbana, OH Ottawa, Ontario Toronto, Ontario Cambridge, Ontario Morristown, NJ Columbia, MD Rocky Mount, NC Greer, SC Norcross, GA Savannah, GA Aguadilla, Puerto Rico Sao Jose dos Campos. Brazil Guarulhos, Brazil Waterford, Ireland Cheadle, UK Basingstoke, UK Bournemouth,, UK Feltham, UK Hemel Hempstead, UK Redditch, UK Tewkesbury, UK Whitstable, UK Yeovil, UK Pune, India Bangalore, India Penang, Malaysia Singapore – Gul Circle – Chai Chee – Changi Bus Park – Joo Koon Circle – Loyang Crescent Bintan, Indonesia Ballarat, Australia Xi’an, China Changsha, China Nanjing, China Suzhou, China Shanghai, China – Li Bing Rd – Jing Lian Rd Kodama, Japan Subic Bay, Philippines Allentown, PA Green Island, NY Prince Edward Island Ansan, South Korea AerospaceTransportation Systems Poway, CA Sofia, Bulgaria Le Bourget, France Vendome, France Vallensbaek, Denmark 42,000 employees at 125 manufacturing, engineering & service sites $13B in Revenue

© 2015 by Honeywell International Inc. All rights reserved. Executive Assistant Frankie Van Parys Loss Prevention & Risk Management Director Rob Pendrys Product Stewardship & Sustainability Sr. Director Marjorie Baumann HSE Governance & Compliance Assurance Director Gregory Bopp HSE&F Strategy & Integration Director Ed Osborne Asia Pac HSE&F Director Nini Xu Americas HSE&F Sr. Director Nicole Carver EMEAI HSE&F Director Liam Moore HTSI HSE&F Director TBD ISC Health, Safety, Environment & Facilities Vice President Scott Harczynski HSE&F Process Excellence Director Ed Light Facilities & Maintenance Director David Stoltenberg FM&T HSE&F Director Donald Fitzpatrick

4HONEYWELL - CONFIDENTIAL HSE Administrator Lindsey Underwood APAC Transition Leader Calvin Song Aerospace HSE&F Extended Organization Executive Assistant Frankie Van Parys FM&T HSEF Director Don Fitzpatrick APAC HSE&F Director Nini Xu Business AlignmentCenters of Excellence HTSI HSE&F Director TBD Integration Jon Yee HSE&F Strategy & Integration Director Ed Osborne Loss Prevention & Risk Management Director Rob Pendrys EMEAI HSE&F Director Liam Moore Process Excellence Director Ed Light Americas Sr. HSE&F Director Nicole Carver Electronic Operations HSE&F Director Tom Moibi Services HSE&F Director Rick Loewen Mechanical Operations HSE&F Director Kevin King HSE&F Vice President Scott Harczynski W&B HSE&F Director Ann-Marie Pendl Real Estate Strategic Planning Director Tom Kuhn EMEAI Sr. HSE Manager Alan Priscott APAC Facilities Leader William Lu Manager Program Eng. Sarah Kubic Analyst II HSE Damaris Morales Sr. Finance Analyst Yanira Ruiz Quiñones HSE&F Analyst Jamal Brown Product Stewardship & Sustainability Senior Director Marji Baumann Facilities & Maintenance Director David Stoltenberg Facilities & Maintenance Operations Manager Bob Stubler Sr. Manager, Facilities & Maintenance Reliability Victor Flint Americas Medical Director Dr. Heidi Roeber Rice LE Lean Expert Certified Black Belt Certified Green Belt Certified BB GB LE BB GB Compliance Assurance Director Greg Bopp FAA Drug & Alcohol Jennifer Milligan GB

© 2015 by Honeywell International Inc. All rights reserved. HSE&F Vision and Mission HOS Identified as the Vehicle to Deliver on Vision and Mission Vision Integrated business partner providing unparalleled HSE&F value and uncompromising commitment to employee health and safety and environmental stewardship. Mission Protect people and the environment through the capabilities of our global talent and the strength of our HSE & Facilities Management Systems.

© 2015 by Honeywell International Inc. All rights reserved. Integrity and Compliance Leading with Integrity and Compliance is the Minimum Expectation 6

© 2015 by Honeywell International Inc. All rights reserved. Flight Path to HSE&F Excellence HSEMS Deployment HOS Launch Aerospace Industries Association (AIA) Most Improved in Safety AIA 2011 Worker Safety Excellence Awards - 3 AIA 2012 Worker Safety Excellence Awards - 2 Slip, Trip, Fall Prevention Program Material Handling Program Hand Protection Program Behavior Observation Process Aerospace Risk Assessment Process HSE - HOS Integration Special Emphasis Process HSE Excellence Award SBG Governance Process Corporate Governance & Audit Process HSE Accountability Policy HSE Performance Index Aero RCA Process External HSE Certification Initiative Risk Mitigation - Combustible Dust Risk Mitigation – Pressure Test SAT / Assurance Letter Process HSE Critical Capital Facilities Critical Capital ISC Leaders HSE&F Council AIA 2013 Worker Safety Excellence Awards - 3 Aero HSEF VP Top 50 EHS Professional Corp Risk Assessment Process Aero HSEF HQ HOS Silver 84% Aero HSEF HQ HOS FSD Aero HSEMS ISO / OHSAS Conformance FMS Deployment Strategy Deployment Product Stewardship Integration Product Stewardship Integration Aero HSEF HQ HOS Bronze

© 2015 by Honeywell International Inc. All rights reserved. Aerospace HSE&F Recognition Internal and External HSE&F Recognition 8 Positive Employee Relations Arizona Environmental Strategic Alliance PROFEPA Environmental Excellence Award

© 2015 by Honeywell International Inc. All rights reserved. Honeywell Aerospace Pays $10M in Environmental Fines in 2008 Functional, Leadership and Employee Ownership / Accountability? 9 “Honeywell to pay $6M in Valley-pollution settlement” “Honeywell Settles Environmental Claims For $3M” Weeks after agreeing to fork over $3 million to Arizona's Maricopa County to settle claims of air quality violations, Honeywell International Inc. has reached a $6 million settlement with the state's environment officials over hazardous waste at its Phoenix airport facility. Honeywell International Inc The N.J.-headquartered technology manufacturing giant will pay a $5 million civil penalty and fund a $1 million environmental project to settle claims of environmental law violations spanning more than three decades. The deal, announced Thursday, resolves a lawsuit brought by the Arizona Department of Environmental Quality and the state's attorney general in July 2004 alleging that between 1974 and 2004 Honeywell emptied chemical waste into the Phoenix sewer system without a permit, failed to clean up fuel from underground storage tanks and failed to fully disclose information about environmental contamination at the site Employee Fatality During Pressure Test Operation 2005 Employee Fatality from Work at Height

© 2015 by Honeywell International Inc. All rights reserved. Functional People and Processes Re-Anchored on the Mechanics of HS&E 10 HSE&F as Business Leaders HSE&F Communications Risk Assessment Process HSE Management System RCCA / HSE Alerts

© 2015 by Honeywell International Inc. All rights reserved. Leadership Accountability Sustainable Opportunity Policy HSE Management System HSE SAT & Corporate Audit HSE Assurance Letter HSEMS Management Reviews HSE Special Emphasis Process Aerospace HSE Risk Assessment HSE Accountability Policy HSE Critical Capital Aerospace RCCA & HSE Alert Process HSE Training for Tier I-V Leaders ISC HSE&F Council Meetings HSE Performance Index HOS – SAFETY, Quality, Delivery, Inventory & Productivity Next - Building Leader HSE Acumen 11

© 2015 by Honeywell International Inc. All rights reserved. Culture of HSE&F Excellence HOS Deeply Integrated and Inseparable with HSE&F 12 1.SQDIP 2.HOS Tiered Accountability 3.HSE HOS Gating Requirements Positive Employee Relations Integration of HSE into HOS Strategy Deployment Process Change Management Leadership Standardized Work Leadership Creating a Future Organization Learning Strategy Communication Strategy Kaizen / Continuous Improvement Process Built-In-Quality Process Design for Flow 5S Visual Management Rapid Problem Solving Leadership Coaching Knowledge Sharing Value Stream Mapping Standard Work Instructions Obs Skills and Waste Identification Integration of HOS into HSE&F

© 2015 by Honeywell International Inc. All rights reserved. Integration of HSE Into HOS Phase 1Phase 2Phase 3Phase 4Phase 5 Organizational Readiness (Pre-Launch) Baseline and Planning Learning Through Observation Work Process Improvement Pursuing Excellence BRONZESILVER GOLD L A U N C H SQDIP Tiered Accountability HSE HOS Phase Gate Exit Criteria SAFETY, Quality, Delivery, Inventory, Productivity Leading Indicators HOS Integration HSE Steering Committee Meetings Leadership HSE Gembas HSE Regulatory Calendar Reviews Proactive HSE Kaizens HSE Layered Reviews Incident Effectiveness Reviews Proactive Regulatory Engagement Standard and consistent HSE messaging at all tiers at all sites globally Tier Meetings used to cascade and escalate issues Standard work drives the responsibility and accountability to the appropriate tier in the organization Triggers identify when activities are not at standard Rapid Problem Solving used to quickly identify root causes to return to standard Kaizen / Continuous Improvement improves upon an existing standard to make work safer and more efficient HSE Behavioral Observation Process Deployed Bronze = SAT > 70 Silver = SAT >= 80 Silver Excellence = ??? HSE risk identified in SOS’s w/ HSE sign-off Hazard screening tool used for change mgmt HSE into HOS training completed for all employees HSE integrated into 5S and RPS processes SDP used to create 3yr plan to achieve SAT 85 10% of kaizen events HSE- related HSE Leader on HOS Steering team HSE Leader attends HSE into HOS Workshop

© 2015 by Honeywell International Inc. All rights reserved. Kaizen / Continuous Improvement Process Integration of HOS Into HSE Visual Management Leadership Standardized Work Change Management

© 2015 by Honeywell International Inc. All rights reserved. MOR HSEF Strategy Deployment & Daily Management Daily Attention to Details Connects Standard Work to Strategy Strategy Daily Management Aerospace Strategy HSEF Strategy Improvement Priorities HSEF GoalsHSEF Balanced Scorecard HSE Management Plan Standard (Daily) Work Projects & Action Plans BDW/MOR MOR Tier 6

© 2015 by Honeywell International Inc. All rights reserved. Journey to Silver Performance vs HSEPI2.00 0%  HOSPI ‒‒ %  HMI ‒‒‒ 1 ‒ TCIR %  LWCAIR %  HQ HSEMS %  PER ‒ %  CIs02191, %  Highlights: -Structured MOS developed and aligned with the SIF -STRAP…Strategy Deployment…AOP linked -Change Management -Employee Engagement Robert W. Campbell Award Winner -"Culture and mind-set needed to support strategy execution and sustain high performance levels" HOS Deployment Building a Foundation 18 Months Following Bronze Certification 0 Reds During Last 3 Months 4 Reds During Last 12 Months

© 2015 by Honeywell International Inc. All rights reserved. The High Cost of Disengaged Employees Engagement: Employee Accountability or Ownership? 17

© 2015 by Honeywell International Inc. All rights reserved. Employee Engagement Aligns with Feedback from NSC 18

© 2015 by Honeywell International Inc. All rights reserved. Performance Time Motivation Equipment/Conditions Systems People Focus Serious Accidents Minor injuries/ Near Misses Unsafe Behaviours Purpose Reputation Regulation What’s Next? 19 Evolution of Performance THIS is Our 5-Year Competitive Advantage

© 2015 by Honeywell International Inc. All rights reserved. Culture Driven by Employee Engagement 20

© 2015 by Honeywell International Inc. All rights reserved Site SAT Score Site HSE Culture 80 Learning SAT Score vs Culture Proactive Reactive Unfocused It’s NOW About Culture Silver Bronze

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