Increase Automation Profits with Honeywell Advanced Solutions Jáchym Vohryzek Annual Downstream Conference, Bucharest, June 6th, 2012

2

Honeywell Today

• A Fortune 100 company – $36B in sales • 122,000 employees in over 80 countries • Over $1.5B spent annually on R&D

Aerospace

Performance Materials & Technologies Transportation Systems

Automation and Control Solutions (ACS)

10% 16%

Diverse Businesses, Technologies and Products

31% 43%

3

Honeywell is Well Known for Process Automation

Automation & Control

Plant Performance Solutions

Lifecycle Services

Field Instruments & Sensors

Leverage Your Investment in Automation Systems

4

Now Get to Know Our Advanced Solutions

Unleash the Full Value of Your Infrastructure Investment

Collaborative Environments

Remote Collaboration

Industrial Compliance

Alarm Management

Manufacturing Execution Systems

Process Simulation for Plant Design

Process Optimization

Emissions & Environmental Management

Advanced Process Control

Supply Chain Management

Process Simulation for Operator Training

Control & Performance Monitoring

Reliability and Asset Management

Blending & Movement Automation

Energy Management

Automation & Control

Plant Performance Solutions

Field Instruments & Sensors

Lifecycle Services

5

Successfully Answering these Questions Drives Value

How will demand

influence my production?

How do I better

manage my assets?

How do I ensure safe & stable operations?

How can I enable my workforce? How can I comply

with industry & government regulations?

Customer Challenges

6

Our Customers’ Challenges

Starved for INFORMATION

Drowning in DATA

Increasingly Complex Operations

Skilled Resource Shortage

Managing the Bottom Line

Managing Compliance

Market Variability & Speed of Change

Faster, Better Decisions

Do More with Less & Do it Better than Ever

7

Safety

Is my plant as safe as it could be from

process incidents?

Reliability

How can I maintain my assets to ensure they

are truly reliable?

Efficiency

Is my supply chain properly aligned for

faster and better decision making?

Delivering on the Goals of Operational Excellence

Can I extend asset lifecycle, optimize performance and

protect the environment?

Sustainability

Solution Suite for Transforming Plant & Business Performance

8

Overview of Our Solutions

Consulting & Solutions Business & Operational Excellence

9

Consultant-Led: Understanding Needs & Value

• Advanced Solutions has the industry domain expertise to help overcome challenges and discover real value available

• Uncovers and analyzes options and best path forward

• Consulting capabilities unmatched by any other industry partner

Creating Value & Delivering Return on Investment

10

Better Process Performance • Advanced applications and

services for better operations management and process optimization • Asset Management • Off-sites Management • Engineering & Operator Effectiveness • Process Optimization

Process Performance Solutions

Improve Process Performance

11

World Class Asset Management

Improve Process Performance

What is it?

• Solution to improve reliability and asset management

• Integrates all aspects of plant maintenance and operations - people, processes and technologies - through a single comprehensive solution.

Key Products

Asset Manager Downtime Reporter Field Advisor Equipment Condition Monitor IBM Maximo

400+

Inst

alls

Abitibi, Amerada Hess, Barrick, BHP Billiton, BP, ExxonMobil, Marathon, NOVA, Rio Tinto, Suncor, Teck Cominco, Ultramar

Sel

ect

Cu

sto

mer

s

Fact

Honeywell has partnered with IBM and SKF to deliver enterprise wide asset management solutions

12

World Class Off-sites Automation

Improve Process Performance

Key Products

Blending Suite Movement Automation Suite

200+ sites, 700+ applications representing >25% of world refining capacity In

stal

ls

BP, Caltex, Chevron, Citgo, ConocoPhillips, ENAP, ExxonMobil, Marathon Oil, MiRO, MOL, PetroChina, PetroPlus, Petronas, PetroVietnam, Saudi Aramco, Shell, Sinopec, S-Oil, Suncor Energy, TOTAL, Valero

Sel

ect

Cu

sto

mer

s

Fact

Blending and movement solutions earned one refinery a cost savings of almost $0.45 per barrel

• Solutions that deliver complete planning, execution, and performance monitoring of off-sites blending and movement operations

• Optimizes in-line blending and improves safety & reliability

• Used in refinery off-sites, terminals and other tank farms

What is it?

13

World Class Engineering & Operator Effectiveness

Improve Process Performance

• Solution to improve operator skill levels and achieve operator competency

• Operator training simulator enables effective transfer of knowledge and skills

• Helps avoid upsets and ensure safe and reliable operations

Key Products

UniSim Operations Suite (for training) UniSim Design Suite (process design)

525+

Inst

alls

Abitibi, Alcoa, Chevron, ConocoPhillips, Delesto, GeorgiaPacific, BHP Billiton, BP, LyondellBasell, Qatar Gas, Saudi Aramco, Petronas, ExxonMobil, Marathon, NOVA, Suncor, Shell

Sel

ect

Cu

sto

mer

s

*According to 2010 ARC Advisory Group report

Fact

Honeywell is the world’s #1 provider of operator training simulators to the process industries*

What is it?

14

World Class Process Optimization

Improve Process Performance

• Solutions to optimize process performance and efficiency

• Helps protect plant uptime and safety by reducing losses caused by poor alarm and control performance

• Improves profitability by increasing production and decreasing costs

What is it? Key Products

Alarm Management Suite Control Performance Monitor Advanced Process Control

3500+

Inst

alls

MMM: Alcoa*, Codelco O&G: Shell*, BP, Enterprise Products, Woodside, Syncrude Refining: ExxonMobil*, ConocoPhillips, Sinopec, IOCL, Tesoro, PDVSA, Saudi Aramco Chemicals: Sasol, Petronas, Dow*, Dupont*, Idemistu, SABIC,Braskem, BASF*, Bayer Material Sciences

Sel

ect

Cu

sto

mer

s

Fact

Control magazine readers recognized Honeywell as the best choice for Alarm Management in 2011

*Enterprise/Corporate Agreements

15

Improve Business Performance

Better Business Performance • Advanced applications and

services to better manage business complexity, elevate production and optimize the supply chain • Collaborative Manufacturing

& Intelligence • Operations Excellence • Supply Chain Optimization &

Production Management

Business Performance Solutions

16

World Class Collaborative Manufacturing

• Solutions that increase collaboration and visibility of information across the enterprise

• Enables faster, more effective decision making

• Helps you better anticipate, collaborate and act on plant data

Improve Business Performance

Key Products

Remote Collaboration & Control Centers Uniformance PHD Intuition Executive Operational Insight Business Hiway (ERP integration)

2500+

Inst

alls

Alcoa, Statoil, ExxonMobil, Suncor, BHP Billiton, Chevron, Sasol, Reliance, Agrium, Freeport LNG, PetroChina

Sel

ect

Cu

sto

mer

s

Fact

Honeywell is partnered with SAP to help customers bridge the gap between enterprise and plant data

What is it?

17

World Class Operations Excellence

Key Products

Well Performance Monitor POMSnet Production Control Center Operations Management Suite Mobile Equipment Monitor Energy Dashboard

1400+

Inst

alls

Atlantic LNG, Tesoro, Total, Qatar Gas, BHP Billiton, BP, ExxonMobil, Marathon, NOVA, Rio Tinto, Suncor, Codelco, Ultramar

Sel

ect

Cu

sto

mer

s

Fact

Honeywell can help you significantly reduce emissions at your plant – proven up to 25% reduction

• Solutions that improve productivity and efficiency of operations

• Enables more accurate monitoring of operations for better decision making

• Improves energy efficiency and reduces costs

Improve Business Performance

What is it?

18

World Class Supply Chain Optimization

*According to 2010 ARC Advisory Group report

Key Products

Production Management Suite Production Intelligence OptiVision Matrikon Mine to Port Supply Chain Management Suite

1300+

Inst

alls

Atlantic LNG, Grupos Lotos, Qatar Gas, BHP Billiton, BP, ExxonMobil, Marathon, NOVA, Rio Tinto, Suncor, Teck Cominco, PDVSA S

elec

t C

ust

om

ers

Fact

Honeywell is #1 provider of Manufacturing Execution Systems (MES) in the process industries*

• Solutions that improve production efficiency and overall results

• Enables faster, more effective decision making

• Improves inventory management • Improves production tracking

Improve Business Performance

What is it?

19

Improve Performance Across the Enterprise

Alliances with SAP and Microsoft help ensure data and application connectivity from your sensors to your boardroom, regardless of the control system or applications used

20

Consulting & Solutions Business & Operational Excellence

The End Result - Business Excellence

21

Potential Benefits to Be Realized*

• Reduce incidents by up to 40% • Increase operator competency • Support continuous improvement

Improve Safety

• Reduce offspec material up to 50% • Reduce transition material up to 30% • Reduce catalyst consumption up to 1% • Improve throughput 2-8% • Reduce energy use 5-10% • Improve forecast accuracy 4-20% • Reduce inventory 15-30 % • Reduce demurrage by 10-15%

Improve Efficiency

• Improve plant availability 3-8% • Preserve and extend asset life • Reduce maintenance costs 3-5% • Improve customer service 5-15%

Improve Reliability

• Reduce green house gas emissions by 25% • Ensure compliance standards • Reduced total cost of ownership • Reduce energy consumption through improved efficiency

Improve Sustainability

* Results based on past customer experience

Typical Return on Investments are 3 Months to 1 Year

>$5B US in measurable benefits has been added to our customers’ bottom-line

22

Our ”Powered by Matrikon” Advantage

• Matrikon technology & expertise is now part of the Advanced Solutions business of Honeywell

• Solutions Powered by Matrikon offer universal connectivity, underlying system & application independence, and greater ERP integration

• Cyber security technology & consulting expertise strengthens the Honeywell offering

• Compliance Manager • Control Performance Monitor • Downtime Reporter • Equipment Condition Monitor • Intuition collaborative core • Matrikon Mine to Port • Mobile Equipment Monitor • Operational Insight • Production Manager • Production Intelligence • Well Performance Monitor

Learn more at

www.matrikon.com

Solutions that Work with Any Control System

23

Examples of Improved Safety

To see details on these stories & more, click here to view Honeywell web site

Borealis (Chemicals), Finland

Woodside Energy (Oil & Gas), Australia “Thanks to Honeywell, our project came in on budget and met our demanding schedule. Honeywell’s UniSim Operator Training Simulator increased the competence and confidence of our staff when dealing with unsafe scenarios, plus reduced the number of trips.”

Dustin Taylor, Process Engineer, Woodside Energy Ltd.

• Needed to train existing & new operators, achieve a safe and fast startup, and avoid any shutdown

• Honeywell’s Advanced Solutions experts worked closely with Borealis to ensure UniSim simulator accuracy was extremely high & training scenarios were appropriate

• Record plant startup time documented as safe & the best in the history of the Porvoo cracker plant

24

To see details on these stories & more, click here to view Honeywell web site

Examples of Improved Reliability

• Needed to improve reliability & utilization of refinery • Advanced process control, operator training simulator, and

blending and movement automation installed “When it comes to technology, we turn time and time again to

Honeywell’s proven solutions and its dedicated people”

Hj Hamzah Ahmad, MG3 Project Director, PETRONAS

Petronas (Refining) Malaysia

Catalyst Paper, Canada “Investing in a state-of-the-art advanced control solution from Honeywell has permitted Catalyst Paper to gain increased control over our operating systems while saving millions of dollars each year in raw materials and energy.”

Dwight Anderson, Senior Process Control System Specialist, Catalyst Paper

25

Examples of Improved Efficiency

To see details on these stories & more, click here to view Honeywell web site

“Honeywell’s expertise and technology have yielded tangible improvements in our overall production processes. We are working with Honeywell as a team–not as customer and vendor.”

Arturo Barría, Automation Leader, Andina Mine, Codelco

Codelco (Mining), Chile

Basell (Chemicals), Germany “Multi-variable predictive control & real-time

optimization significantly improved the quality of control in our plant and helped us to operate the plant at the economic optimum."

Advanced Process Control Technologist Ethylene Plant 4, Basell

26

Examples of Improved Sustainability

To see details on these stories & more, click here to view Honeywell web site

Yara Belle Plaine (Petrochemicals), Canada • Nitric acid plant increased energy efficiency and

reduces greenhouse gas emmissions with Advanced Process Control

• Reduced energy consumption by 5% • Maintained tight control of NOx emissions to spec

and reduced methane emissions by 25% • Increased production capacity by 3%

• Needed to minimize downtime and sustain performance • Advanced Solutions applied to gather and track reports

and data to meet government regulations and requirements

• Uniformance application used to monitor downtime and analyze plant & performance.

Dominion Power, USA

27

Advanced Solutions Related Acquisitions / Alliances

Dec. 2005

Acquisition delivering improved refinery

operation solutions Acquisition of

operator training

business & HYSYS process

modeling software from

AspenTech

Dec. 2004

Acquisition of online corrosion detection & prevention systems &

related services

Jul. 2005

Jan. 2007

Acquisition of APC &

Optimization business incl. linear & non-

linear controls & optimization

software + personnel

2006

Development of renewable energy &

chemicals group

Jan. 2010

Acquisition of Shell’s OTTER technology helping

to guide field operators

Jun. 2010

Acquisition Matrikon and MatrikonOPC market leader in operations performance management

Honeywell is Committed to Grow Advanced Solutions

Alliance to develop enterprise wide

collaborative solutions

Jan. 2008

Alliance to deliver

enterprise wide collaborative

solutions to the oil & gas industry

Jun. 2011

28

The Honeywell Difference

• World Leader in Advanced Solutions – Unmatched technology & industry domain

expertise

• Out-Come Based Consulting – Uncovers your options to determine the

best path forward

• World Class Technology – Solutions developed & delivered specifically

for each industry – Vendor neutral solutions

• World Class Project Execution – Proven on-time & on-budget delivery

reduces risk – Local project and lifecycle services

Thank You For Your Time!

Global

Multiple Industries

Local Experienced

Broadest Portfolio