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Honeywell in Czech Republic: Activity Overview

Learn about Honeywell's presence in the Czech Republic, their diverse range of businesses, and the reasons to invest in the country. Discover the technology, manufacturing, and service capabilities that make Honeywell a leading global corporation.

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Honeywell in Czech Republic: Activity Overview

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  1. Honeywell in Czech Republic:Activity Overview Jaroslav Doležal Brno, Oct. 8, 2013

  2. Company Overview

  3. We are building a world that’s safer and more secure… more comfortable and energy efficient… more innovative and productive…

  4. Honeywell $39-39.5B in sales* • 1,300 sites, 70 countries • 132,000 employees • Morristown, NJ headquarters • Fortune 100 54% sales outside U.S. Performance Materials and Technologies Aerospace Automation and Control Solutions Transportation Systems *2013 guidance

  5. Honeywell’s Businesses Performance Materials and Technologies Automation and Control Solutions Transportation Systems Aerospace Phoenix, AZ headquarters $12.1-12.3 billion sales* Minneapolis, MN headquarters $16.4-16.6 billion sales* Morristown, NJ headquarters $6.9-7.0 billion sales* Rolle, Switzerland headquarters $3.6-3.7 billion sales* *2013 guidance

  6. Great Positions in Good Industries Aviation & Defense Automotive & Transportation Buildings, Construction & Maintenance Chemicals, Specialty Materials & Fertilizers Consumer & Home Efficiency, Energy & Utilities Fire Protection & First Responder Healthcare & Medical Industrial Process Control Manufacturing Natural Gas, Refining, Petrochemicals & Biofuels Safety & Security Scanning & Mobile Productivity Safety & Security, Energy Efficiency, Clean Energy Generation, Globalization and Customer Productivity

  7. Energy Efficiency & Clean Energy Generation With more than 50% of our products linked to energy efficiency, Honeywell is helping the world meet its energy challenges Air Traffic Modernization Biofuels Low Global Warming Refrigerants Green Buildings By immediately and comprehensively adopting existing Honeywell products,the U.S. could reduce energy consumption20 to 25% Industrial Process Efficiency Fuel-efficient Turbochargers Demand Response, & Smart Grid Energy Performance Contracts

  8. Technology and Innovation Developing solutions for the world’s toughest challenges 22,000 technologists worldwide 97 research & engineering facilities 32,000 patents granted or pending

  9. Going the Czech Republic

  10. Reasons to Invest in CZ • Initial conditions • Globalization of R&D and innovation • Sustainable growth in highly competitive environment • Cost efficiency of manufacturing and technology advancement • Enhancement of company presence in the region • Enablers • Highly qualified, effective and innovative technical workforce • High standard and tradition of technical education • Long and successful history of industrial development • Political and economic stability, cultural proximity • Strategic geographical location and developed infrastructure • Appropriate business and investment environment • Investment support and incentives (CzechInvest role) • Positive reference of other investors • Hands-on experience with Honeywell Prague Laboratory Technology Absorption and Innovation Prone

  11. Drivers and Expectations • Why the Czech Republic? • Qualified technically excellent workforce • Tradition of technical education and creativity • Cultural proximity • Geographical position and developed infrastructure • Business friendly and stable environment • What is expected: • Availability of suitable workforce ready to cope with innovative and competitive environment • Flexibility and invention of our employees • Readiness to enhance personal qualification and skills • Communication, personal and managerial proficiency • Ability to efficiently cooperate in global environment • What is offered: • Employment at global technological corporation • Mastering and use of up-to-date tools and methodologies • Career opportunity and growth Mobility – Flexibility – Passion – Performance

  12. History & Presence in the Czech Republic

  13. Honeywell History in Czech Republic • Sales & Distribution • 1962 – Sales representation (Austrian branch) • 1991 – Honeywell Service & Engineering s.r.o. • 1995 – Honeywell spol. s r.o. • Research & Development • 1993– Prague Technology Center (todayHPL) • 2003 – Global Design Center in Brno(today HTS) • 2008 – Turbo Test Lab opens in Brno • 2010 – New HTS facility opens in Brno • 2013 – HTS facility expansion in Brno • Manufacturing Units • 2001 – AdemcoBrno • 2002 – Mora Aerospace a.s. • 2003 – SecurityProducts (Olympo) • 2008 – Honeywell Aerospace Olomouc s.r.o. • Support & Shared Services • 2004 – Global Credit and Treasury Services • 2004 – Global Business Services • 2006 – Aero Global Business Center • 2007 – Honeywell International s.r.o. Technology, Manufacturing & Service Hub

  14. Honeywell in Czech Republic Honeywell spol. s r.o. HPS, ECC, HLS Honeywell Aerospace Olomouc s.r.o. Prague Shared Services Honeywell Prague Laboratory Olomouc Honeywell Aerospace s.r.o. Brno Honeywell International s.r.o. HTS CZ o.z. Brno o.z. Security Products o.z. Czech Republic: Over 4,000 Honeywell Employees

  15. Technology Experience

  16. Prague Laboratory (since 1993) 280 t/hr 230 t/hr Efficiency 12 1998 1999 10 8 [%] 6 4 2 0 86 86.5 87 87.5 88 88.5 89 89.5 h [%] • Research & Development Establishment • Part of ACS Global Laboratories organization • Highly qualified staff (PhD mostly) • Technology Focus • Process Control & Optimization • Data-Centric Technology • Activity Highlights • Integrated knowledge intensive sw solutions • Advanced solutions for power/energy sector (power generation, real-time control, contract negotiation & execution, diesel engine design/control) • Remote service, analytics, decision support, building controls (smart buildings, smart grid, energy efficiency, CBM, video analytics, human factor) • Support of business units and customer projects • EU and government project pursuit(S&T Council) • Patents, publications, conferences, lectures • Cooperation with Czech Technical University • Direct personal links • Joint research projects (CZ, EU) First Honeywell R&D Unit Outside US

  17. Honeywell Technology Solutions (since 2003) • Basic data • Location: Brno • Employees: close to 900 • Participating Divisions • Automation & Control Solutions • Aerospace • Turbo Technologies • IT solutions & services • Status • Part of Honeywell Technology Solution Labs worldwide (US, China, India) • Corporate level technology support unit • Recruitment/growthcontinues • Close link to Brno University of Technology • Joint research projects – CZ government 2003: Investor Most Enhancing Qualified Labor 2010: Investor With Greatest Innovation Potential

  18. Honeywell Manufacturing Manufacturing Facilities • Honeywell Aerospace Olomouc (2002) • Location: Hlubocky near Olomouc • Aircraft engine components • Expansion since 2004 • Honeywell – Brno (2001) • Location: Brno - Cernovice • Security system components • Control products • Expansion since 2004 • Security Products (2003) • Location: Brno • Security solutions integration Significant Recent Expansions Accomplished 2007: Processing Industry Investment Award

  19. Brno ECC Factory Environmental & Combustion Controls • Opened : September 2003 • Space: 25,000 sqm (all floors) • ISO 9001 and 14001 certified • Technology: electronics, mechanical & manual assembly / testing • Factory Census: 800 • Customers: OEM & Distributors - predominantly in Europe • Major receiving site for ECC EMEA transitions • Honeywell Operating System (HOS) • Full Scale Deployment – 3 Wave Approach Electronic Work Instructions: Easy to access, incl. videos U-Shape One Piece Flow line The Largest ECC EMEA Operation

  20. University Relations

  21. University Cooperation Strategy What Is Expected • Company: Influence of basic/special curricula based on market needs and technology developments; recruitment; joint R&D activities • University:Support/sponsorship from strong business partners; joint R&D activities; delivery of basic/special courses/degrees (e.g. customized courses/certifications to companies) What Makes Difference • Contacts, sponsorship, working relationship, trust building • Recruitment, university job fairs, company open days, etc. • Joint projects, R&D activities, consortia, spin-offs, start-ups • Personal/staffing relationship, exchange stays, internships • Long-term relationship, champions on both sides essential • Selective and flexible approach for large companies and SMEs Long-Term Relationship and Champions Crucial

  22. Partners’ Dilemma Industrial Partner Dilemma (aim to own & exploit) What is received for my direct investment (buy-in, cost share, overhead)? Is intellectual property agenda properly covered? Who will own the results and to what extent? Should I wait/stand-by and buy the mature stuff at later date? In total, does it make sense to participate? University Partner Dilemma (aim to publish & share) Is my academic freedom recognized and sustained? Is the proposed compensation fair enough? Are the cooperation conditions too strict/restrictive? Is such technology transfer just bringing additional overhead? Would fundamental research orientation make may life easier? Huge Opportunity – EU Structural Funds Investment

  23. Recent Development with Universities I • General/Master Agreement on Cooperation • Czech Technical University (CTU) – since 2008 • Brno University of Technology (BUT) – since 2009 • Technical University Ostrava (TUO) – since 2012 • Membership in Faculty Staff • Full Professorship in Electrical Engineering at Czech Technical University (CTU) Prague (Honeywell Senior Fellow – since 1995) • Membership in University Bodies • Scientific Board of Brno University of Technology – BUT (since 2006) • Board of Trustees of CTU (since 2007) • Board of Trustees of Masaryk University Brno (since 2010) • Scientific Board of Faculty of Electrical Engineering CTU (since 2011) • Doctor honoriscausa (Dr. h. c.) honorary doctoral title • Awarded by BUT to National Executive in 2009 Institutional Format of University Cooperation

  24. Recent Developments with Universities II CTU Media Lab Foundation Support students’ innovative ideas and promote engineering career recognition (National Executive since 2006) Honeywell-Nobel Initiative Pilot event at CTU, 2006, with Nobel Laureate Horst Störmer Follow-up event at BUT, 2008, with Nobel Laureate Alan Heeger Second event at CTU, 2009, with Nobel Laureate Theodor Hänsch Honeywell Initiative for Science and Engineering (HISE) Pilot event at BUT, 2011, Nobel Laureate Douglas Osheroff Follow-up event at CTU 2012, Nobel Laureate Sheldon Glashow Recent event at TUO, 2013, Nobel Laureate Albert Fert Planned event at BUT, 2013, Nobel Laureate George E. Smith Promotional Format of University Cooperation

  25. Recent Developments with Universities III Honeywell Innovators Scholarship Program Participation of students of CTU, BUT and TUO Honeywell Leadership Challenge Academy Participation of college students in scholarship program to enhance science, technology, engineering and math education Internship Student Program For students of CTU and BUT – over 100 students involved Mentorship/Review Activity Supervision/consulting of master/doctoral thesis (CTU and BUT) Preparation of reviews for master/doctoral thesis Participation in review committees for master/doctoral degrees R&D Cooperation EU Framework Programme projects CZ public funded projects (Technology Agency, various ministries) Academic Format of University Cooperation

  26. Honeywell-Nobel Initiative at CTU – 2006 • Global initiative starts at CTU in Prague • Horst Störmerpublic lecture “Small Wonders: the World of Nano Science”, CTU, Oct. 18, 2006 • Seminar at Faculty of Nuclear Sciences & Physical Engineering • Colloquium at Faculty of Electrical Engineering • Gala Dinner at Hrzansky Palace of the Czech Government See –http://stormer.cvut.cz

  27. Honeywell-Nobel Initiative at BUT – 2008 • Alan Heegerpublic lecture “Creativity, discovery and risk”, May 13, 2008 • Discussion with BUT undergraduates • Colloquium lecture on Cheap plastic solar panels • Gala Dinner at BUT Great Aula See – http://www.vutbr.cz/heeger

  28. Honeywell-Nobel Initiative at CTU – 2009 • Theodor Hänsch– public lecture „PassionforPrecision“,CTU, March31, 2009 • Workshop„Towards a QuantumLab on a Chip“ at Faculty of Nuclear Sciences & Physical Engineering • Colloquium at Faculty of Electrical Engineering • Gala Dinner atMandarinOriental Hotel See–http://hansch.cvut.cz

  29. Honeywell Initiative for Science & Engineering • New initiative of Honeywell starting in Brno • Douglas Osheroffpublic lecture “Advances in science”, Brno University of Technology, May 22, 2011 • Discussion with BUT undergraduates • Colloquium lecture on Superfluid Phases of Liquid Helium Three See – http://www.honeywellscience.com

  30. Honeywell Initiative for Science & Engineering • New initiative of Honeywell continuation in Prague • Sheldon Glashowpublic lecture “Does Science Evolve through Blind Chance or Intelligent Design?”,Czech Technical University, May 10, 2012 • Discussion with CTU undergraduates • Colloquium lecture on Neutrinos and Particle Physics See – http://www.honeywellscience.com

  31. Honeywell Initiative for Science & Engineering • Recent event at Technical University Ostrava • Albert Fertpublic lecture “Spintronics: A New Frontier For Computing and Communications”, Technical University Ostrava, March 26, 2013 • Meetings/discussions with students and staff ofthe university • Colloquium lecture on Quantum Physics MeetsNanotechnology: Emerging Directions in Spintronics See – http://www.honeywellscience.com

  32. Honeywell-Nobel Initiative at BUT – 2013 • Upcoming event at Brno University of Technology • George E. Smithpublic lecture “My life and some advice for yours”, BUT FEKT, Dec. 3, 2013 • Colloquium lecture on The Invention and Early History of the CCD See – http://www.honeywellscience.com

  33. Government & External Relations

  34. Company Representation National Executive (since 2003) Present a single, integrated focal point for Honeywell Coordinate/integrate cross-SBG projects and activities Represent company to governmental and educational bodies Coordinate communication/responses to the public Foster compliance with statutory requirements of legal entities Honeywell Hometown Ambassadors (since 2009) Put constituent face on Honeywell Communicate Honeywell priorities locally Prove credibility with governments through business leaders Educate elected officials about the services we provide and scope of our commitment to the communities we serve Grow advocacy, influence, increase visibility and build loyalty Effective Government Relations Drives Growth

  35. Public & Promotional Activities I Government & External Relations • R&D Council of Czech Government – membership since 2004, Vice-Chairman 2008-2010 – linkage to various ministries • R&D Council ExpertCommission for Technical Sciences and Engineering – Chairman since 2012 • Council for Energy and Raw Materials Strategy, Ministry of Industry and Trade – membership since 2011 • Advisory Board for Security R&D, Ministry of Interior, membership since 2012 • Advisory Board for Defence R&D, Ministry of Defence, membership since 2013 • AmCham – Board of Directors – Membership since 2007 (National Executive) • Association of Aviation Manufacturers – Board of Directors – membership since 2011 • Technology Platform of Sustainable Energy – membership since 2009, Vice-Chairman since 2011 • Advisory Board of National Technical Library – membership since 2012 • Close relationship with US Embassy (visits of US Ambassadors to Honeywell sites, Embassy events, etc.) Success Means Knowing and Addressing Our Risks and Vulnerabilities

  36. Public & Promotional Activities II Promotional Activities • Investor of the Year 2006 – Personal Award for Long-Term Contribution to Investment in Czech Republic (National Executive) • Manager of the Year 2007 in Electro Technology Sector – Personal award (National Executive), Prague, Apr. 2008 • Czech EU Presidency INCOM Workshop, Prague, Jan. 2009 • Participation in Prime Minister mission to US, Washington D.C., Nov. 2011 • The Czech-American Workshop Use the best from the U.S., Prague, Jun. 2012 • The Czech-American Conference Sustainable Energy, Prague, Sep. 2012 • Promotional Seminar Brno Days in N.Y., New York, Oct. 2012 • PACITA (Parliaments and Civil Society in Technology Assessment), EU shared initiative, 2012-2015, consultancy provided. • Visit of Tatarstan presidential delegation at Brno, Apr. 16, 2013 – high attention this top level visit in Russian/Tatarstan media. Links To Institutions & Media Steadily Enhanced

  37. Tatarstan President Visit at Brno President RustamMinnikhanov (right) Government & Business Delegation Mutual business opportunities in aerospace, automotive and building automation sectors Innovation and Technolology Highly Recognized

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