Honeywell Turbo TechnologiesAir Flow Ambient Air Inlet Turbine Engine ... Honeywell Turbo Forecast...
Transcript of Honeywell Turbo TechnologiesAir Flow Ambient Air Inlet Turbine Engine ... Honeywell Turbo Forecast...
Honeywell Turbo Technologies
Rob GillettePresident and CEO
Transportation Systems
Scottsdale, AZ Dec. 2004 Page 2
These materials contain certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. 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 conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in these materials 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.
Forward Looking Statements
Scottsdale, AZ Dec. 2004 Page 3
Today’s Review
• Transportation Systems
• Turbo Technologies Overview
• Ride & Drive Preview
• Ride & Drive
Scottsdale, AZ Dec. 2004 Page 4
Automation
SpecialtyMaterials
Aerospace
Transportation
32%
16%
38%
14%
• 108,000 employees in nearly 100 countries
• A Fortune 60 company – $25 billion in sales
• One of 30 select companies in the DJIA
Honeywell Today
Scottsdale, AZ Dec. 2004 Page 5
• Strong Brands • Installed Base
2004E Revenue: $4.2 - 4.3B 13 - 14% Op. MarginProfileProfile
Strengths:Strengths:
Consumer Products Group28%
Consumer Products Group28%
• Turbo Technology• Global Presence
Turbo Technologies51%
Turbo Technologies51%
Friction Materials21%
Friction Materials21%
Strong Growth Driven By Turbo Technology
Transportation Systems
Scottsdale, AZ Dec. 2004 Page 6
Sales byRegion
Salesby Segment
Global Leader in Engine Boosting
Turbo TechnologiesTurbo Volume
in millions
Europe64%
Americas22%
Asia12%
OE85%
• $2.4 billion in sales (est 2004)• Leader in technology and innovation• Aerospace heritage and synergy
1994 1996 1998 2000 2002 2004E .
2.12.7
4.7
6.37.2
9.1
PassengerVehicles
67%
Comm’lDiesel33%
15.8% CAGR
Scottsdale, AZ Dec. 2004 Page 7
Charge Air Cooler
EngineCylinder
EGR Cooler
Engine Exhaust Gas
Compressor
Compressed
Air Flow
AmbientAir Inlet
Turbine
EngineGas Discharge
What is Turbocharging?
Increases Power Density
• Turbine driven compressor• Propelled by engine exhaust gas• Increases air flow and density
Scottsdale, AZ Dec. 2004 Page 8
Untapped Opportunity for Turbocharging
Boosted/Non-Boosted Vehicles
Renault-Nissan
DaimlerChrysler
0 2 4 6 8 10 12
GM
Ford
Toyota
Volkswagen
Peugeot
Hyundai
BMW
Volumes (Millions)
BoostedNon-Boosted
SignificantBoosting
Opportunity
Boosting Opportunity
Source: Power System Research
’04 ’090
25 24.7
15.5
Turbocharged Segment(Million)
’04 ’090
75
Overall Auto Market
63.571.8 (Million)
Diesel
Gas
33%33%30%30%
63%63%67%67%
2.5% CAGR
Other4%3%
10% CAGR
Comm’l Vehicles
Scottsdale, AZ Dec. 2004 Page 9
Fuel Economy, Emissions and Performance
Turbo Applications
• Heavy Duty
• Light Trucks
• Passenger Cars
Why Turbocharge?
Scottsdale, AZ Dec. 2004 Page 11
Turbo DieselTurbo Diesel
Great driving experience with 30 - 50% better
mileage than gasoline vehicles
Turbo Gasoline Turbo Gasoline 10 - 20% better mileage
compared to non-boosted engines with equal or better
performance
Performance and Fuel Economy
Turbo Benefits
Scottsdale, AZ Dec. 2004 Page 12
8.87.2
8.6
10.6
0
2
4
6
8
10
12
2.3L I5 1.8T 1.9TDI 2.0Source: Auto Motor und Sport; Car and Driver
AccelerationAcceleration Fuel ConsumptionFuel Consumption0-60 miles in seconds
25.7 28.3
45.9
26.4
05
101520253035404550
2.3L I5 1.8T 1.9TDI 2.0
SecondsMPG
Fun to Drive and Fuel Efficient
European VW GolfEuropean VW Golf
(city 45%, highway 55%)
Turbo Benefits - A Comparison
Scottsdale, AZ Dec. 2004 Page 13
Turbo GasolineTurbo Gasoline
Source: VW
Engine HP Torque Fuel Economycity/highway
BMW 325 184 175 19/272.8L NA
Saab 9.3 205 209 23/33 2 L Turbo
“Turbo +11% +19% +21% / +22%Effect”
Turbochargers Enable Performance and Fuel Economy
Turbo Benefits - “The Turbo Effect”
Engine HP 0-60 Fuel Economycity/highway
VW Golf 150 8.8 sec 18/322.3L I5 Gas
VW Golf 150 8.6 sec 33/54 1.9L I4 TDI
“Turbo _ .2 sec +83% / +69%Effect”
Turbo DieselTurbo Diesel
Why Now?
Scottsdale, AZ Dec. 2004 Page 15
Legislation Converging
NOx (g/Km)
JapanPM[g/Km]
Japan 2000
Japan 2005
0.05
0.10
NOx (g/Km)
US
0.0 0.5 0.8 Nox (g/km)
Tier I (1994)
Tier II (2004)
0.05
0.10
PM[g/Km]
Europe
0.5 0.8
Euro II (1996)
Euro III (2001)
Euro IV (2005)
0.05
0.10
PM[g/Km]
NOx & ParticulatesNOx & Particulates
Increasing Requirement For Clean Technologies
0.0 0.5 0.8 0.0
European COEuropean CO22 Reduction ObjectivesReduction ObjectivesC
O2
[g/k
m]
2002 20122008100
180
160
140
120
165g/km
140g/km
-15%120g/km
-27%
Euro V (2010) Tier III (2007)
Scottsdale, AZ Dec. 2004 Page 16
Global Engine Downsizing Trend
Engine Size(Liter)
2.5 L
3.0 L
152 Hp
129 Hp
1.0
2.0
3.0
4.0
5.0
1990 2000+100
110
120
130
140
150
160
170
180
+18%
-16%
Size, Weight, Performance
(Hp)
Europe Asia USAvg. Displacement 1.9L 1.8L 3.6L
Avg. Horsepower 72Hp/L 71Hp/L 58Hp/L
Boosting / Turbo is a Key Enabler
• Average engine size decreases globally (except in the US)
• Average engine Hp increases
WW Average WW Average (Passenger Car and Light Truck)(Passenger Car and Light Truck)
• Increased engine power density in Europe and Asia
Scottsdale, AZ Dec. 2004 Page 17
Diesel - Our Foundation for GrowthDiesel Penetration Over 20 Years
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
90 92 94 96 98 00 02 04 06 08 10
Europe:56%
Korea:62%
China:22%
US:7%
VNT™ for Passenger Car
AVNT™ for light andmedium duty trucks
Latest GenerationDebuted in
2005 BMW 120D
Double Axle VNT™ forheavy duty trucks
Diesel Penetration Continues to Increase Worldwide
Scottsdale, AZ Dec. 2004 Page 18
Modern Clean Diesel
New Diesel Technology Drives Consumer Acceptance
• Old technologies• Polluting, dirty
– Particulate matter (PM)– Nitrogen dioxides (NOx)– Sulfur fuel
• Consumer rejection– Bad impression– Unsatisfactory performance
• New technologies– Common rail fuel injection, Variable
injection timing, VNT™ technology
• Environmentally friendly– 83% PM reduction since 1988– 63% NOx reduction since 1988– Ultra low sulfur fuel available in 2006
• Increasing consumer acceptance– Superior performance and no turbo lag– 1/3 of Americans would consider
purchasing a clean diesel vehicle*.* J.D Powers & Associates
BeforeBefore NowNow
Scottsdale, AZ Dec. 2004 Page 19
Technology and Strong Market Drive Growth
0
100
200
300
'01 '02 '03 '04 '05 '06
Source: WARD’s Communications & ACT Research
Heavy Duty Truck ShipmentsHeavy Duty Truck Shipments
Volu
mes
(000
)
North America Heavy Duty Truck Segment
• Strong growth driven by economic recovery • Variable geometry needed to meet US emissions
requirements• “Pre-buy” cycle boosts shipments through 2006
Scottsdale, AZ Dec. 2004 Page 20
0
200
400
600
800
1000
1200
1400
1600
1800
Die
sel S
ales
(K U
nits
)
2004 2005 2006 2007 2008 2009 2010
PVLT < 8500LT > 8500
US Dieselization
Diesel Now Associated with Ultimate Driveability
• Ability to charge a premium in premium car and light truck/SUV• Real world fuel economy meets expectations• Efficiency without compromising performance• Torque benefit for larger vehicles• Strong vehicle residual values
ExistingMarket
LT>8500
*NewGrowth
*Domestics + Imports
75% Penetration
8% Penetration
3% Penetration
US Diesel GrowthUS Diesel Growth
Scottsdale, AZ Dec. 2004 Page 21
0
1
2
3
4
5
6
7
8
9
Technology Breakthrough will Lift Gas Turbo Adoption
5M Turbo5M Turbo(12% of gas engines)
8M Turbo8M Turbo(20% of gas engines)
3.4M Turbo3.4M Turbo1.6M Turbo1.6M Turbo
Mill
ion
Uni
ts
Wastegate Variable Geometry
Future DirectionFuture Direction
Global Turbo Gasoline Segment
’01 ’03 ’08 ’10Source: PRI, PSR, Martec
Gasoline - Growing Interest Worldwide
Scottsdale, AZ Dec. 2004 Page 22
Asia Growth
Diesel Adoption, Emissions Drive Growth
ChinaChina• Light duty truck growth• Adoption of Euro II standards• Fuel consumption regulations to be
increased 15% by 2010JapanJapan• Strong overseas growth in diesel• Gasoline boosting opportunity driven
by CO2 regs beyond ‘08• New long-term emission standard
from 2H/05KoreaKorea• Continued increase in passenger car
diesel adoption• Tax incentives fuel diesel growth
Overall Boosting DemandOverall Boosting Demand(Units)
2003 2008
6M
3.3M
CAGR CAGR 13%13%
3M
1.3M
2003 2008
CAGR CAGR 18%18%
Honeywell Turbo ForecastHoneywell Turbo Forecast(Units)
Scottsdale, AZ Dec. 2004 Page 23
0
100
200
300
400
500
600
2003 2008
Turbodiesel Vehicle Production
143K
501K
Light VehiclesCommercial Vehicles
03-08 CAGR28%
India
• Favorable fuel price differential • 2005 Euro III implementation • Focus on export market• Euro IV favors VNT technology
• Business won with Tata and Mahindra
• Developing facility in Pune • 300K unit volume opportunity
Honeywell Turbo in India
Fast Growing Diesel Segment
Why Honeywell?
Scottsdale, AZ Dec. 2004 Page 25
Technology Evolution
Step 1Step 2
Step 3
Wastegate
VNT™ Variable Nozzle Turbine
Variable Geometry Compressor Turbos2-Stage
Turbos
Step Change:Turbine Side
Step Change:Compressor
Side
Step Change:Control and Response
e-Turbo™ Electrically
Assisted Turbo
Perf
orm
ance
Entering Market
20082004
Robust Technology Roadmap
Scottsdale, AZ Dec. 2004 Page 26
• Improved power• Lower fuel consumption and emissions• Higher torque and improved transient response• Improved braking power
Latest Generation VNT
Engine RPMEn
gine
Tor
que
1000 2000 3000 4000
Wastegate
Naturally Aspirated
Variable Nozzle Turbo (VNT™)
Simulated Torque Curve
Continued Improvement of Groundbreaking Technology
Scottsdale, AZ Dec. 2004 Page 27
Two-Stage Turbo
• Employs twin turbos to boost low- and high-end performance
• Significantly increases power density of engine
• Higher power, transient response
Engine RPMEn
gine
Tor
que
1000 2000 3000 4000
Wastegate
Naturally Aspirated
VNT™
Simulated Torque CurveSimulated Torque Curve
2-Stage
Increasing Performance Through Staged Boosting
Scottsdale, AZ Dec. 2004 Page 28
• Applies variable geometry to compressor side of turbo
• Wider flow range increases efficiencies
• Can be used on full engine range
Variable Geometry Compressor
Engine RPM
Engi
ne T
orqu
e
1000 2000 3000 4000
Wastegate
Naturally Aspirated
VNT™
Simulated Torque Curve
VGC
Moving From Turbine to Compressor Side
Turbine Compressor Variable GeometryCompressor
Scottsdale, AZ Dec. 2004 Page 29
• Employs electric motor to eliminate turbo lag
• Full integration with engine management system
• Complements hybrid engines and fuel cells
Electric Boosting
Engine RPM
Engi
ne T
orqu
e
1000 2000 3000 4000
Wastegate
Naturally Aspirated
VNT™
Simulated Torque Curve
E-Boost
Provides “Boost on Demand”
Electric Motor
Scottsdale, AZ Dec. 2004 Page 30
Hybrid Technology
Hybrid Cost/Benefits Unclear
• Variety of hybrids exist; all rely on internal combustion engine– Most fuel efficient version would be turbodiesel-hybrid
• Niche vehicle or mainstream technology?– Hybrid penetration in Japan less than 5% after many years– Cost/benefits analysis on hybrids vs turbodiesel still unclear– Mature adoption of turbodiesel to limit European penetration
• Fuel-economy most pronounced during stop/start driving
Scottsdale, AZ Dec. 2004 Page 31
Diesel versus Hybrid
1000 5000
0-60 mph (seconds)
Escape Hybrid vs. Jeep Liberty DieselEscape Hybrid vs. Jeep Liberty DieselPrice ($000s)
City Fuel Economy (US mpg)
20 30
8 12
20 40
Source: Corporate Information, Car & Driver, AutoSite, Wards Communications
Highway Fuel Economy (US mpg)
20 40
2.3L I4 Hybrid 2.8L I4 Diesel
Towing Capacity (lbs.)
Diesel Offers Superior Value for LT/SUV
TD H
TD
Liberty DieselTDEscape HybridHHTD
TDH
TD H
TDH
Scottsdale, AZ Dec. 2004 Page 32
People/ExpertisePeople/Expertise• Aerodynamics• Mechanical wheel design (HCF, optimization)• Reliability build up• Cooling optimization/material
TechnologyTechnology• Air bearings• High temperature alloys• Coatings• Assembly/welding
MarketsMarkets• Automotive controls• Electronics• Power generation
Honeywell Technology Applied to Turbo
Honeywell Competitive Advantage
Scottsdale, AZ Dec. 2004 Page 33
Global Footprint
Kodama, JapanKodama, Japan
ShanghaiShanghai
Seoul, KoreaSeoul, Korea
Sao Paulo, BrazilSao Paulo, Brazil
Torrance, CATorrance, CA
Skelmersdale, UKSkelmersdale, UK Cheadle, UKCheadle, UK
MexicaliMexicali
Waterford,Ireland
Waterford,Ireland
Atessa, ItalyAtessa, Italy
Thaon-les-Vosges,France
Thaon-les-Vosges,France Bucharest,
RomaniaBucharest,Romania
Morges,SwitzerlandMorges,
Switzerland
Detroit, MIDetroit, MI
Birmingham, UKBirmingham, UK
Broad and Diverse Resources
R&D CenterR&D CenterManufacturingManufacturing
HeadquartersHeadquarters
Pune, IndiaPune, India
Scottsdale, AZ Dec. 2004 Page 34
Turbo Productivity Engine
Supporting Worldwide Growth
• Manufacturing/supply base transitioning to emerging regions– Most incremental new volume in Bucharest, Mexicali and Shanghai
• Focus on our core competencies, outsource the rest– More than 60% of cost is materials: supply base drives productivity
• Lean initiatives ensure maximum shop floor utilization
Percent of Cost of Goods Sold Percent of Cost of Goods Sold
20042004 20092009
High Cost 62%
Emerging Regions
38%High Cost
46%
Emerging Regions
54%
Scottsdale, AZ Dec. 2004 Page 35
Enjoy the Ride!
Summary
• Why Turbocharge?- Optimizes engine performance- Fuel economy- Emissions reduction
• Why Now?- Legislative mandates- Worldwide diesel and gasoline market demand- Recent technological advances
• Why Honeywell?- Technology leader- Expertise, competitive advantage- Global presence and customer base
Why Wait?
Here’s a look at the vehicles you’ll be driving!
Scottsdale, AZ Dec. 2004 Page 37
322 hp @ 5250 rpm
332 lb.-ft @ 2000 to 4500 rpm
6.2 s 0-62 mph
21 / 28 mpg (AUS)
4.0L DOHCGas Turbo 4.0L DOHC4.0L DOHCGas Turbo Gas Turbo
I6 24V DOHC
Ford Falcon (Australia)
Scottsdale, AZ Dec. 2004 Page 38
322 hp @ 5250 rpm
332 lb.-ft @ 2000 to 4500 rpm
6.2 s 0-62 mph
21 / 28 mpg (AUS)
4.0L DOHCGas Turbo 4.0L DOHC4.0L DOHCGas Turbo Gas Turbo
I6 24V DOHC
Ford Falcon (Australia)
Scottsdale, AZ Dec. 2004 Page 39
211 hp @ 5500 rpm
229 lb.-ft @ 3500 rpm
2.0LGas Turbo
2.0L2.0LGas Turbo Gas Turbo
6.4s 0-60 mph20/37 mpg (Euro)
I4 16V DOHC
Ford Focus RS (England)
Scottsdale, AZ Dec. 2004 Page 40
110 hp @ 5500 rpm
114 hp @ 2000 rpm
9.8 s 0-62 mph
27/39 mpg (Brazilian)
1.0LGas Turbo
1.0L1.0LGas Turbo Gas Turbo
I4 16V DOHC
Volkswagen Parati (Brazil)
Scottsdale, AZ Dec. 2004 Page 41
241 hp
243 lb.-ft
9 s 0-60 mph
18/24 mpg
2.4LGas Turbo
2.4L2.4LGas Turbo Gas Turbo
I4 16V DOHC
Jeep Liberty I4T (Honeywell prototype)
Scottsdale, AZ Dec. 2004 Page 42
80 hp @ 5250 rpm81 lbs.-ft. @ 3000 rpm
10.9s 0-62 mph37/53 mpg (Euro)
Smart Roadster
700 cc Gas Turbo700 cc Gas Turbo
L3 SOHC
Scottsdale, AZ Dec. 2004 Page 43
218 hp @ 4000 rpm
368 lb.-ft @ 1750 rpm
3.0LTurbo Diesel
3.0L3.0LTurbo Diesel Turbo Diesel
7.1 0-62 mph25 / 43 mpg (Euro)
I6 24V DOHC
BMW 530d
Scottsdale, AZ Dec. 2004 Page 44
180 hp @ 4000 rpm
279 lb.-ft @ 1500 rpm
2.5LTurbo Diesel
2.5L2.5LTurbo Diesel Turbo Diesel
9.6 0-62 mph19/37 mpg
V6 24V DOHC
Volkswagen Passat TDI
Scottsdale, AZ Dec. 2004 Page 45
218 hp @ 4000 rpm
368 lb.-ft @ 1750 rpm
3.2LTurbo Diesel
3.2L3.2LTurbo Diesel Turbo Diesel
7.7 0-62 mph27/37 mpg
V6 24V DOHC
Mercedes Benz E 320 CDI
Scottsdale, AZ Dec. 2004 Page 46
40 hp @ 4200 rpm
74 lb.-ft @ 1800-2800 rpm
0.8LTurbo Diesel
0.8L0.8LTurbo Diesel Turbo Diesel
15.4 0-62 mph60 / 75 mpg (Euro)
I-3 6V SOHC
Smart City-Coupe CDI
Scottsdale, AZ Dec. 2004 Page 47
313 hp @ 3750 rpm
552 lb.-ft @ 2000 rpm
5.0LTurbo Diesel
5.0L5.0LTurbo Diesel Turbo Diesel
6.2s 0-60 mph17/23 mpg
V10 5.0l DOHC
VW Touareg
Scottsdale, AZ Dec. 2004 Page 48
Questions