FUTURE OF POWERTRAIN TECHNOLOGY

Transcription

1 Craig Balis July 31, 2018 FUTURE OF POWERTRAIN TECHNOLOGY C.A.R. Management Briefing Conference

2 2 HONEYWELL OVERVIEW $40.5B in sales for % of sales outside the U.S. 23,000 engineers worldwide 11,000 software developers 150 research engineering facilities 38,000 patents granted or pending ~1,300 SITES ~70 COUNTRIES MORE THAN 131,000 EMPLOYEES MORRIS PLAINS N.J., U.S. HEADQUARTERS FORTUNE 100 NYSE HON Honeywell is building a smarter, safer, and more sustainable world.

3 Honeywell TS Becoming Garrett

4 Garrett Advancing Motion 4 Garrett to be stand alone, publicly traded company Allow already successful business to unlock full potential Estimated $3.1Bn in sales Fully retain 6,500 global employees 1,200 engineers Install base >100 million in 180 countries Dedicated business plans target global growth in a more timely fashion - Grow existing turbo business - Expand electrified products and connected vehicle technologies TS is already the source of our products and services

5 Customer Benefits Transportation Systems Solutions Industry Trends TRANSPORTATION SYSTEMS OVERVIEW Years of Experience +155 Countries Served 13 Manufacturing Plants / 5 R&D Centers +100 New Applications Each Year +7,500 Product References to 1,500,000 Garages Turbochargers Electrified Powertrain Connected Vehicle Solutions Turbo % in light vehicle mix 47% 62% Technology leadership in light and commercial vehicles Launching 10 new core turbo technologies per year Customized for each application: >45% win rate Key enabler for fuel economy and emission standards compliance Best cost of ownership and productivity Standardized operations and global footprint Electrified % in light vehicle mix 5% 30% Hybrids to dominate and mostly turbocharged eboosting solutions for hybrid vehicles: eturbo High performance electric compressor for hydrogen fuel cell vehicles Demonstrated expertise in high speed electric machine Optimized fuel economy and reduced NOx Electricity generation potential for further fuel economy improvement Connected % in light vehicle mix 40% 100% Vehicle monitoring solution: cybersecurity and vehicle health management Building on Honeywell cross-industry expertise Dedicated software centers and teams Proven solutions for aircrafts and critical infrastructures Partnership with key hardware Tier 1s (Lear, LG Electronics) Scalable offering for high volume applications

6 GLOBAL IMPORTANCE TO OEMs Foundational powertrain technology coupled with downsizing Same or better hp & torque +20% better FE over larger NA gas engine Global turbo penetration rates increasing Compatible with other technologies 6 Turbo Penetration Increasing Globally GAS APPLICATIONS ARE FASTEST GROWING 2017 by Honeywell International SEGMENT Inc. All rights reserved.

7 7 BOOSTING FUELS ACROSS ALL PLATFORMS TURBO GASOLINE TURBO DIESEL TURBO HYBRID ELECTRIC JEEP CHEROKEE 2.0L CHEVY COLORADO 2.8L AUDI Q7 E-TRON 3L FUEL CELL HONDA CLARITY FUEL CELL +15% City MPG +23% Torque +19% MPG +37% Torque +130% MPG +59% Torque VS. VS. 3.2L V6 naturally aspirated gasoline 3.6L V6 naturally aspirated gasoline 3.0L V6 supercharged gasoline H2 VS. H 2 O 2 +60% Power Density +33% Smaller VS. outgoing FCX Clarity Downsized engine for fuel economy Strong towing capability Start/Stop compatible High energy content fuel High efficiency combustion Improved low emission aftertreatment Best fuel economy and transient performance Zero-emission city driving Candidate for electric boosting 130 Kw electric motor Zero emissions, 366 mile range Refuels in 3 5 minutes 70% peak efficiency

8 ELECTRIFIED GLOBAL LANDSCAPE Electrified vehicles will account for 5% of the light vehicle mix in Electrified vehicles will account for 30% of the light vehicle mix in Hybrids will grow from 3 million vehicles in 2016 to more than 16 million in 2021.* About 70% of mild hybrids are expected to have a turbo or multiple turbo system by 2021.* Electrification Level Mild-Hybrid (48V) Full-Hybrid Plug-in Hybrid Battery Electric Fuel Cell Electric On the Road Audi SQ7 Toyota Prius Mitsubishi Outlander Tesla Model S Honda Clarity Combustion Engine / emotor / Battery 5-15 kw <1kWh kw 1.5 kwh kw 10 kwh kw kwh kw 1.5 kwh * 2016 HON TS Forecast data

9 9 ELECTRIC BOOSTING GROWING PORTFOLIO ELECTRIC TURBO ELECTRIC COMPRESSOR FOR FUEL CELLS ELECTRIC COMPRESSOR MILD HYBRID PLUG-IN HYBRID FUEL CELL ELECTRIC MILD HYBRID PLUG-IN HYBRID CUSTOMER BENEFITS Faster transient response provides reduced emissions Energy recovery reduces fuel consumption Up to 40% fuel cell volume reduction at constant power Reduced weight & cost No oil to poison cell Up to 15% faster km/h Up to 15% better fuel economy Up to 20% NOx reduction ARCHITECTURE LV: 180k rpm CV: 120k rpm >20kW continuous 100k rpm 94% motor efficiency 48V >6kW PM Intermittent duty cycle

10 E-TURBO LAYOUT & AIR SYSTEM ARCHITECTURE 11 Honeywell E-Turbo attributes: Generates power for battery system Improved fuel efficiency Integrated design eliminates 2 nd machine and related parts Right-sized turbo for top end performance Improved transient, low-end torque performance Greater boost and turbo speed control Steady state = +13% Torque, 1000 rpm E-Turbo Baseline Improved low-end torque performance Honeywell E-Turbo

11 2-STAGE COMPRESSOR FOR FUEL CELL 12 Tech Benefits 1. Motor speeds produce more power 2. Air bearings avoid contamination 3. Pressure ratios reduce noise 100x FIRST PRODUCTION LAUNCH OF AN 2017 ELECTRIC by Honeywell International MACHINE Inc. All rights reserved. FOR TS

12 Summary Global Macros Sustainability Electrification Connectivity / Autonomy Honeywell Transportation Systems Global Turbo Adoption Advanced Turbos E-Boosting Hybrids Fuel Cells Cybersecurity Integrated Vehicle Health Mgmt. Advanced Controls 13

13 14 Honeywell is building a smarter, safer, and more sustainable world. THAT S THE POWER OF CONNECTED. THAT S THE POWER OF HONEYWELL. Connected Aircraft Connected Building Connected Home Connected Plant Connected Supply Chain Connected Vehicle Connected Worker This document contains certain statements that may be deemed forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 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 release 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.