Recent Years

Business Overview (FY ended Dec. 31, 2014)

Transportation Systems
-Following the closing of the sale of its Friction Materials business, the Company realigned its Transportation Systems business segment with its Aerospace business segment.

-Transportation Systems sales decreased by 2.6% to USD 3,659 million primarily due to the Friction Materials divestiture, partially offset by continued growth from new platform launches, higher global turbo gas penetration and increased commercial vehicle demand in Europe.

Divestitures

-The Company sold its Friction Materials business to Federal Mogul Corporation. The Honeywell Friction Materials business is headquartered in Glinde, Germany, with significant operations in Romania and China. The business operates only in Europe, China and Brazil and not in the United States. The transaction does not include the Bendix name or line of products or any assets, liabilities or business in the United States. (From a press release on July 14, 2014)

Tie-Up

-Asahi Glass Co., Ltd. (AGC) will produce HFO-1234yf, a refrigerant for automotive air conditioners from 2015. HFO-1234yf was jointly developed by the Company and E.I. du Pont de Nemours and Company (DuPont), both headquartered in the U.S. AGC will build a new plant in Chiba, Japan, to produce the new refrigerant by using the company's proprietary fluorochemical technologies. The HFO-1234yf produced at the plant will be sold by the Company to customers in Europe, U.S. and Asia. The new plant and the Company's existing plants in the U.S. will meet growing demand throughout the world including Japan. HFO-1234yf refrigerant is a new product with a very low global-warming potential (GWP) of less than one, which is below the value of CO2. HFO-1234yf has increasingly been chosen for new cars to comply with the Mobile Air Conditioning (MAC) Directive in Europe. Regulations on high-GWP refrigerants are also slated to take effect in Japan in 2015. Currently there are 500,000 vehicles which use HFO-1234yf in the global market. The number is expected to grow to 2 million units by the end of 2014. (From an article in the Nikkan Jidosha Shimbun on January 24, 2014)

Licensing Agreement

-UOP LLC, a unit of the Company, and TPC Group Inc. announced that the two companies have entered into an agreement for UOP to be the exclusive licensor of the proprietary TPC Group OXO-D technology used to produce on-purpose butadiene, a key ingredient for making synthetic rubber used in tire and other applications. TPC Group is North America's producer of butene and finished butadiene. (From a press release on June 12, 2014)

Awards

-Honeywell Turbo Technologies (HTT) India was recognized for quality and delivery performance of the Honda 1.5L diesel wastegate turbo engine project. Honda presented HTT India with the award for Best Support In New Model Development Start-Up. The 1.5L D engine is featured in the Honda "Amaze" as well as the new Honda "City". (From a press release on April 11, 2014)

Contracts

<2014>
Diesel-powered passenger vehicles

Region/Country	Product	Customer	Engine
Europe	Turbocharger	VW	1.6L & 2.0L
Europe	Turbocharger	BMW	2.0L
Europe	Turbocharger	Daimler	2.0L
U.S.A.	Turbocharger	Chrysler Ram/Jeep	3.0L
China	Turbocharger	Jiangling Motors	2.8L
China	Turbocharger	Anhui Jianghuai Automobile	2.8L
China	Turbocharger	Jonway Automobile	2.0L
Japan	Turbocharger	Subaru	2.0L
Korea	Turbocharger	Hyundai	1.7L/2.5L
India	Turbocharger	Tata	1.05L
India	Turbocharger	Ford	DV5 1.5L

Gasoline-powered passenger vehicles

Region/Country	Product	Customer	Engine
Europe	Turbocharger	Renault	0.9L/1.2L
U.S.A.	Turbocharger	Ford	2.3L
China	Turbocharger	Dongfeng Peugeot Citroen	1.2L
China	Turbocharger	SAIC-GM-Wuling (SGMW)	1.2L
Japan	Turbocharger	Nissan	1.6L/3.0L
India	Turbocharger	Tata	1.2L

Trucks

Region/Country	Product	Customer	Engine
Europe	Turbocharger	MAN	10.9L/12.5L
Europe	Turbocharger	Volvo Truck	7.7L
U.S.A.	Turbocharger	Hino	7.7L
China	Turbocharger	Jonway Automobile	7.8L/10.3L/12.9L
Japan	Turbocharger	Hino	7.7L
India	Turbocharger	AVTEC	3.9L
India	Turbocharger	Volvo	5.1L

<2015 Vehicles displayed at North American International Auto Show>

Product	OEM	Model
Turbocharger	Ford	Mustang
Turbocharger	Chrysler Jeep	Renegade
Turbocharger	Chrysler Dodge	1500
Turbocharger	Audi	Q7
Turbocharger	GM Chevrolet	Colorado
Turbocharger	VW	Passat
Turbocharger	Fiat	500
Turbocharger	BMW	6 Series
Turbocharger	Ford Lincoln	MKC

R&D Expenditure

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Overall	1,892	1,804	1,847
% of sales	4.7	4.6	4.9

R&D Structure

-The Company has research and development activities in the US, Europe, India and China.

Product Developments

Turbocharger
-The Company expects to launch more than 100 turbocharger applications involving more than 20 new technologies in 2014. These new applications will serve the Company's global customer base with gasoline, diesel, natural gas and hybrid powertrains in both light vehicle passenger and commercial vehicles. The Company is a global leader with more than 500 current turbo programs in various stages of development in its customer pipeline, which are all expected to come to market in the next few years. Honeywell turbos, including the recently announced Honeywell VNT turbo helping power the Fiat "500L" and its 1.6L Multi Jet II diesel engine, make significant contributions to auto makers balancing improved fuel economy, lower emissions and enhanced performance. (From a press release on February 10, 2014)

New Aegis H55WC nylon resin
-Honeywell Resins and Chemicals announced that it has introduced the new Aegis H55WC nylon resin designed to protect cables and electrical wiring used in industrial and consumer products. It provides excellent protection from grease, oil and gas, and resists impact, abrasion and cuts. It is certified by Underwriters Laboratories for use in a variety of demanding applications, including residential and commercial buildings, machine tools, automobiles, appliances, offshore oil platforms and marine equipment. (From a press release on June 17, 2014)

Capital Expenditure

(in million USD)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Overall	1,094	947	884

Investment Outside USA

<China>
-The Company inaugurated its new Wuhan Plant. The new operation will triple the Company's turbocharger production capacity in China where demand is rapidly growing. The Company's other facilities in China, a plant and a technical center, are located in Shanghai. The technical center is equipped with the world's second-largest facility to test turbochargers. The Company has produced an aggregate total of over 8 million turbochargers at the Shanghai Plant. (From a press release on September 3, 2014)