Honeywell International Inc. (HON) Earnings Call Transcript & Summary

Good morning, everyone. This is Mark Bendza speaking, Vice President of Investor Relations for Honeywell. Welcome to the first quarter 2021 installment of the Honeywell leadership webcast series. As a reminder, this conference is being recorded, and your microphones have been placed on mute. Note that elements of this presentation contain forward-looking statements that are based on our best view of the world and of our businesses as we see them today. Those elements can change based on many factors, including changing economic and business conditions, and we ask that you interpret them in that light. We identified the principal risks and uncertainties that may affect our performance in our annual report on Form 10-K and other SEC filings. Joining me today are Ujjwal Kumar, President of Honeywell Process Solutions; Ben Owens, Vice President and General Manager of Honeywell Sustainable Technology Solutions within UOP; and Andrew Obin, Managing Director and Senior Analyst at Bank of America. As always, our goal with this webcast is to provide our investors with the opportunity to hear from a wide range of Honeywell leaders on topics of special interest. During our December webcast, we highlighted the Honeywell value creation framework, which has a long track record of generating above-market returns for our shareholders in all economic environments. As part of our value creation framework, we're making high-return investments to address hundreds of billions of dollars in additional market opportunity, including in areas like quantum computing, unmanned aerial systems and urban air mobility, Aclar Edge medical packaging solutions for therapies and vaccines, healthy building solutions and enterprise performance management software, among many others. Let's turn to the first slide. Today, we will highlight some of our most exciting opportunities in PMT, technologies that address the world's increasing demand for digital transformation, process automation and sustainable solutions, including renewable energy storage and controls that create superior economics for renewable energy, thereby accelerating the adoption of renewable energy at scale; Ecofining technology that addresses the growing demand for renewable fuels and reduces greenhouse gas emissions; advanced plastics recycling to reduce plastic waste; next-generation clean hydrogen capabilities, which can play a central role in future energy networks; and finally, industrial autonomous operations that drive energy efficiency and sustainability. In total, these businesses address a $9 billion serviceable market that is growing at an approximately 35% compounded annual growth rate. We believe we are positioned to outgrow the market and gain share, leading to a potential $1 billion-plus of incremental annual sales in sustainable solutions over the next several years. With that, I'll turn the call over to Ujjwal and Ben to provide an overview of each solution before going into Q&A with Andrew. Let's turn to the next slide. Ujjwal and Ben, I'll turn it over to you.

Thank you, Mark. It's a pleasure to be with you here today to share the technologies that Honeywell Process Solutions offers to customers to help them meet their sustainability objectives, primarily efficiency and their profitability. $1.3 trillion will be invested over the next 5 years to build 1 terabyte watt of renewable energy generation, primarily wind and solar. Consumers of that generation expect it to be consistent and reliable. But as we all know, there are times when the wind doesn't blow, and the sun doesn't shine. Advanced controls and automation will be critical for producers to efficiently manage those operations and the supply and demand fluctuations on the power grid. Controls and automation are key parts of the intelligent storage systems that will be required to address the variability of wind and solar energy generation. Honeywell is well positioned in this space. We have more than 40 years of experience in control and automation, and we have expanded our offerings into energy performance. For example, our Software as a Service, SaaS-based solutions charge and discharge battery storage systems based on demand, intermittent supply and grid pricing. This is being done today at locations in North America where we have some projects. Our customers at an industrial plant can expect a 10% to 70% reduction in electricity cost in their utility bill, and about 60% reduction in carbon footprint through a combination of energy saving subgrades to the existing facility as well as adding on-site generation of solar plus storage. A study we carried out showed up to 60% reduction in carbon footprint after deploying Honeywell technology. We at HPS and Honeywell have the experience and expertise to deliver battery energy storage systems using batteries on the market today to deliver sustainable solutions to customers. We are also working with our colleagues at UOP, who are developing tomorrow's battery technology. And I'll turn it over to Ben to discuss what they are innovating at UOP. Over to you, Ben.

Thank you, Ujjwal. Appreciate it. So I think you heard Ujjwal say a significant hurdle to accelerating renewable energy generation is the intermittency of the generation and therefore, kind of industrial-scale energy storage solutions are required. The batteries today, they rely on lithium, cobalt. They're scarce, expensive resources but also are prone to thermal runaway and can't hold a charge for longer periods. At UOP, we've applied our expertise in chemistry, material science to develop an entirely new battery technology. They use these cheaper and more widely available materials. This novel new design delivers a safer and lower levelized cost of storage for durations more than 4 hours. In addition to its ability to store energy longer and discharge periods longer, the UOP battery doesn't lose capacity over time. It doesn't overheat and has the potential to supply hundreds of megawatts hours of power. We're testing this technology to show how it can operate on industrial scale with the goal of deploying these energy storage systems with utilities around the world. Key here is by pairing our breakthrough energy storage technology with our advanced control and automation expertise that Ujjwal highlighted, Honeywell is accelerating the transition to renewable energy. So next slide, please. So on the renewable fuel side, our Honeywell technology is enabling lower carbon transportation fuels. The demand for cleaner burning fuels is driven by: one, the transportation and aviation sector decarbonization initiatives, but also environmental mandates regulation. This will result in more than 4 billion incremental gallons of renewable jet and diesel by 2025, nearly triple the current volumes. Now just as a clarification, these are generation 2 biofuels, which are different from a biodiesel or ethanol, which are limited by the amount that can be blended with regular fuels. Renewable diesel and jet are molecularly similar drop in fuels with no blend limits. This comes from our Ecofining technology that can build -- be built from either the ground up or repurpose existing hydroprocessing units. Now this is a very cost-effective solution for some of the underutilized assets we see in the market today. Our technology can accept and process recovered vegetable oils, nonfood crops that are grown to produce these fuels or even process waste animal fats as its feedstock. And depending on that feedstock, diesel from an Ecofining process can reduce greenhouse gas emissions by more than 80% on a total life cycle basis, and this is compared to a petroleum-based diesel. Our Ecofining technology represents the largest installed base of renewable jet and diesel and production. But more importantly, we have 4x more capacity currently in development. And the reason it's been successful, our process has been shown to process the widest variety of feedstocks, producing the highest yields and highest margins. So Ecofining technology is accelerating transportation fuel decarbonization by producing the lowest carbon transportation fuels. Next slide, please. In advanced plastic recycling, we're developing economically viable rights -- routes to plastic recycling. There's an increasing pressure to manage plastic waste, driving the need for end-of-life solutions for plastics. And to offer a little context, 275 million tons of plastics are discarded every year. The potential economic value of what this -- is being thrown away is north of $120 billion. About 90% of that waste is lost to a landfill or even worse, lost to the environment. Interesting enough, even what is recycled can be downgraded to lower-value applications. Today, some of the plastics that are recycled are your cleaner or your less colored. There's no real good route for films, colored, multi-material, multi-layered or other low-value plastics. And what we see for recycling to become economically viable, it has to process a wide variety of process -- plastics and it has to enable plastic security. What we're developing is an advanced recycling technology that breaks plastics down to the molecules it came from. Our technology is superior to others because it can handle the widest variation of waste streams to make a consistent feedstock that provides a new profit stream for waste management companies by assigning an economic value to waste plastics. We're launching this at a commercial scale in a modular form that produces virgin-quality post-consumer resins from waste plastics and plastics that can't be mechanically recycled. This recycled polymer oil from this process will be used as a drop-in replacement feedstock in existing petrochemical facilities. But more importantly, why we're positioned to win here is we've led the development of petrochemicals for its 70 years in existence. The management of hydrocarbon molecules is our business. We have the best knowledge of what characteristics are required in the feedstock to meet the petrochemical processing requirements. And these companies have been purchasing from us and have been our customer for decades. We see advanced recycling as incentivizing investment in collection and sorting, discouraging incineration, landfilling and ultimately, reducing leakage of plastics to the environment. In summary, we believe our technology can triple the amount of plastics that can be recycled. Next slide, please. On carbon capture and the hydrogen economy, we're enabling the lowest cost path to clean hydrogen. Hydrogen is an extremely versatile, low-carbon source of energy. And we see the demand for hydrogen as it's growing tenfold, north of 560 million tons by 2050. And for a little context, blue hydrogen is made by stripping the hydrogen off a nitro gas and putting the residual carbon back in the ground in the form of CO2. So it is a low-carbon method of making hydrogen. Additionally, green hydrogen is made by using electricity from wind and solar, just split water into hydrogen and oxygen. So it involves no carbon at all. And this is the technology we're in the early stage of development. But our experience with asset gas removal and purification can produce blue hydrogen for natural gas with up to 90% lower CO2 emissions when compared to conventional method that do not include carbon capture. Our blue hydrogen solutions represent the lowest cost route, and we have over 1,100 hydrogen purification systems and -- in our installed base. And in addition to our generation capabilities, our expertise in control, transmission and consumption of hydrogen positions Honeywell as a leader in the hydrogen economy. And to speak a little bit more on that, Ujjwal, I'll pass it over to you to expand on that position.

Thanks. Thanks, Ben. HPS provides end-to-end solutions for hydrogen transmission, distribution and consumption. Hydrogen transmission and distribution, there the HPS offers a full suite of technologies for injecting hydrogen into transmission lines and distributing hydrogen to residential and industrial customers using existing natural gas networks. And when it comes to hydrogen consumption, HPS designs and manufactures the complete hydrogen combustion system, including fuel train supplies and burner management systems and SaaS-based solutions that optimize process systems, all designed to help companies interested in creating the lowest-cost path to clean hydrogen for sustainability. Let me move over to the final topic today. Moving to the next slide. The -- all of the technologies that Ben and I talked about today have shared around sustainable energy. These are all around sustainable energy solutions. They will be built to be inherently autonomous, meaning they are built fully automated, intelligent, resilient and don't require an on-site presence. Remember, these are all sectors of the market which are born post -- in the post-digital era. In fact, many new and existing industrial processes will move towards the objective of industrial autonomous operations in the years to come. By increasing the level of automation, intelligence and resiliency, processes across all industries will inherently operate more efficiently, both with production and energy efficiency. This isn't far off in the future. It's happening today. We are working on several of those projects globally. Much like an autonomous car, industrial autonomous isn't just about removing the driver. It's about driving more safely, reliably and efficiently by having automation and technology to eliminate human error while always operating in the most efficient and sustainable manner. We see an incredible new autonomous frontier that Honeywell is uniquely qualified to capitalize on. After all, we are a world-leading automation company. But we also augment our control system expertise with 2 additional capabilities that other automation companies do not have: a complete portfolio of software solutions that enable plant optimization as well as depth of process expertise with UOP. By combining our know-how software solution and decades of automation expertise, we see an inflection point in enabling an industrial revolution in moving from automated to autonomous operation. In doing so, creating a new generation of benefits with sustainability, safety, reliability and efficiency. With that, I'll hand it back to Mark.

Great. Thank you, Ujjwal and Ben. And Andrew, I'll turn it over to you for Q&A.

Yes. So thanks so much for making me part of this. Thank you, Mark, and Ujjwal and Be, it was very, very interesting to hear what Honeywell has going on under the hood, always a pleasant surprise. Look, just maybe we can start talking about renewables energy, storage and control. First, can we talk about a little bit more about Honeywell's expertise in battery technology? What underpins it? And how is it different from emerging lithium-ion players? Clearly, we hear a lot about that technology.

Okay. So Andrew, as I noted, Honeywell provides fully integrated battery technology, which is agnostic to specific modular systems. They are optimized for various needs of our customers. A fully integrated modular system will deliver electricity cost savings, carbon footprint reduction and revenue generation. Customers have a different use cases they are looking for when they buy a system, and we match the use case with the optimal technology, use cases such as, say, think of frequency control or voltage regulation, balancing and energy capacity optimization. We use different lithium-ion technologies and focus on the safest battery technologies. Our systems are equipped with various fire and gas detection and suppression systems. This is what we get from our Building Technologies business in house. We are developing a new technology that is not based on lithium-ion and therefore, can hold a charge for longer periods without the danger of thermal runaway, which you heard about earlier from Ben.

Got you. Maybe we can talk about your go-to-market strategy. Anything unique about Honeywell's approach? And I guess you did talk about advantages of having an integrated product. But when you have conversations with customers, how is this conversation different versus folks who are just trying to sell the battery alone?

So our key differentiation is we provide an end-to-end solution that combines our modular battery energy storage systems with our software platform, which drives outcomes for our customers throughout the project life cycle with performance guarantees. We have our remote operation centers in different parts of the world today from where we enable those remote operations and performance management for these assets. These performance guarantees, they are a key differentiator. They derisk asset owners' cost and income. These performance guarantees can be for availability and reliability guarantees, facility uptime, energy capacity and degradation as well as revenue generation. An integral product is central to -- this integrated product is central to delivering performance on an asset.

Got you. And what is the competitive landscape right now?

I think we see a variety of, I would call them, point solution providers with some cell manufacturers, system integrators or software providers. But where we really see Honeywell differentiating itself is in providing this fully integrated solution driven by our remote operations software platform to monetize investors' energy storage assets.

Got you. Can you talk more about this concept of front of the meter and behind the meter? And what exactly are Honeywell opportunities in both categories?

Okay. I'll demystify this all behind the meter, front of the meter a bit. Behind the meter usually refers to delivering energy cost savings to a particular end user like an industrial plant or commercial facility. Honeywell helps the customer achieve the energy savings through energy arbitrage, discharging energy from a battery storage system when energy costs are high, which can be referred to as peak saving and charging battery storage when energy costs are low or charging them via renewable sources. Honeywell delivers a complete solution of energy control software coupled with our battery energy storage units. And like I said previously, we can sell the energy control solution as a performance contract or as software and battery storage. Savings for our customers can be substantial, particularly in parts of the world where peak costs can be extreme. Front of the meter usually refers to sales of power back to a utility to help address peak loading or to balance grid stability. Here, the battery storage is used by an independent power producer that discharges the battery storage for revenue when utilities are paying a premium. This allows utilities to avoid bringing online peak plants, which often use, as we all know, coal as a combustion source. Front of the meter solutions look very similar to behind the meter. We sell our energy control software along with battery storage or we can operate the facility on behalf of the power producer. In both cases, Honeywell provides unique autonomous controls and remote monitoring of -- to operate the facilities, predicting peaks, automatically discharging power at optimal times. We have invested in new software solutions that deliver better economic outcomes associated with energy. It -- and it was pretty natural for us. We are an industrial and building controls company with decades of domain experience with complex process optimization at facilities. As you know, industries like mining, upstream and pipeline have dependent on -- they have depended on us for years to provide this type of autonomous control, energy efficiency and remote monitoring, which is what we are bringing to this space.

Got you. And so last question here. How much visibility do you have in storage and control? And is the opportunity really going forward more on the storage or control side? And what I mean is battery hardware or your control software hardware?

I think we have pretty good visibility into storage and controls demand. Remember that we serve utilities extensively with our smart metering and smart grid capability already. We have decades-long relationship with every major power and gas utility around the world. Through those relationships, we have also gained access to new venture companies that are setting up as independent power producers. We also have great visibility into behind-the-meter customers, many of which are existing Honeywell customers at industrial facilities, warehouses and data centers. We -- today, we have a solid pipeline in storage and control and believe the opportunity in this area is just getting started. Ultimately, we see the value as selling the solution of software plus battery storage to deliver the outcome. Individual suppliers of each leave the end user with the problem of integration. We -- Honeywell, we get paid for creating and sustaining the value. And that is where, right now, we are investing a lot. And we are seeing very good traction in the market.

Got you. So maybe we can sort of skip to renewable fuels because that was also quite interesting. Can you describe the regulatory framework in place, both in the U.S. and Europe, supporting the shift to clean fuels?

Yes, absolutely. Appreciate it, Andrew. If you -- in the U.S., you look at U.S., Europe, other parts of the world, well-defined renewable fuels, energy standards that promote market-based incentives that drive the value of these. If you look a little deeper in the U.S., the primary mechanism are called RINs or renewable fuel identification numbers. And that's really the currency out of the U.S. Renewable Fuel Standard Act. The standard's defined into 2022. However, we expect it to be extended well beyond 2022. And we've seen these RIN values rise with the expectation that the Renewable Fuel Standards policy will remain enforced and that the EPA will grant fewer exceptions to smaller refineries. And the rise in these RIN values is also rising the market value, which is good for the expansion of feedstocks volumes. And that's a key part the equation for the expansion of renewable fuels. In addition, there's a blender's tax credit of up to $1 per gallon on renewable diesel, and that's been extended in 2022. And it's important to note here, while this is a significant incentive and it's expired before, it's always been expanded or extended retroactively. So producers have maintained uninterrupted benefits. Additionally, there's growing support for a national low-carbon fuel standard. We see this led by actions in California, Oregon and Washington and even being expanded into the Northeast. This standard would focus on reducing CO2 emissions and providing incentives for low-carbon intensity fuels. That would best benefit producers of what I talked about earlier, second-generation biofuels such as renewable jet diesel. And I think it's important to note that regulations, policies have shown to be economically effective and durable. But the market is driven by a mega trend here. There's a mega trend towards low-carbon transportation fuels. And certainly, regulatory policies have supported it, but we see the mega trend here of low-carbon transportation fuels prevailing.

Got you. How much traction are you getting with clients? And how has the conversation changed over the past 12 months?

Yes. We -- one of the leading inventors of the renewal fuels, the Ecofining technology. The traction has never been stronger in the last decade, the last 10 years of our history. Many of our customers are planning new ways to repurpose existing refining assets. They see this, and they want to avoid some of their stranded process units and have some excess capacities. Many customers were kind of in the early stages, a year or 2 of discussions, now have rapidly transitioned to commissioning studies, financing and kicking off projects. I think I mentioned in my opening that we have 4x the number of units in development that currently are producing. So the conversation has changed significantly. And also the speed of the market has significantly increased, I'd say, the past year or 18 months.

And what is the long-term trajectory for scaling up adoption of Ecofining technology in the future?

Yes. We talked about this, the confluence of regulation, low-carbon fuels, some of the regulations. Clearly, point of trajectory of 15% year-on-year growth in renewable fuels. What we see is over the next decade, up to 2030, the current supply of waste fats, greases, used cooking oils, they'll be sufficient to meet the growth in renewable fuels. But to keep that growth up and kind of beyond that, we're developing new routes to unlock additional low carbon, widely available feedstocks that will kind of support the continued growth of this market.

Got you. And I guess the last question. So what is the impact of this mix change on the margins in the business?

Oh, absolutely. So renewable fuel projects are generally higher margin and accretive when that is compared to an equivalent conventional refinery fuel project.

Oh, that's good to hear. So advanced plastic recycling. So that sounds very, very interesting. But what needs to happen to commercialize this technology forward? And what should we watch out for in terms of regulations?

Yes. So we typically see regulation following technology development. So we're developing innovation, and we expect a regulatory structure that will follow it. There are many investment decisions being made today on the anticipation of increased legislation. That could come in the form of increased cost of landfilling, could come in the form of increased cost of incinerating plastic waste. It could come on attacks on nonvirgin polymers. And what our technology does is it eliminates these. It eliminates the need to landfill and eliminates the need for incineration. And it allows a more effective end of life, particularly in light of some of these new taxes. It can convert that waste plastic back to the molecules it came from and producing a high-value feedstock to make new plastics. I think the other thing that is important to highlight here is it reduces some of the cost and complexity. They currently exist when you have to sort plastics to a high degree to make them profitable. And if we can lower that bar, lower the sorting requirements, sending more plastics to advanced recycling technology, this will enable a greater amount of waste to be converted and much more than the current mechanical processes allowed today. And where we expect is we expect that different -- that regulation will help speed up this adoption as we achieve more profitable economies of scale through advanced recycling. You see the technology improvements, the market demand and the regulation coming together, that is making this market viable now.

And just to make it clear, we really do have recycling technology. So why do we need new advanced recycling or chemical recycling technology? Is that just a matter of increasing collection and forward?

So that's what a lot of people think, but let me talk a little bit about some of the economics and the percent that actually gets recycled. It's really about improving the economic value of recycling plastics and how much of that is converted. Right now, much of recycling is a cost center versus a profit center for waste management companies. I'll give you an example. Even if 100% waste plastics were collected and sorted today, we can only deal through mechanically recycling with about 30% of them. And of that 30%, much of what you'd see would get down cycled into a lower-value application. The process we're talking about here, advanced plastic recycling, can take that 30% up to 90% of waste plastics can be dealt with. And this will simplify sorting, it will improve profitability and incentivize collection. So by rapidly expanding the kind of universe from 30% to 90%, that's why we see this technology as critical.

Got you. That's actually very interesting. So the next, I think, big topic you guys talked about was CO2 capture sequestration. I think sort of hydrogen naturally flows into it as well. So why is the world moving to hydrogen? And why is the world moving to hydrogen now?

Yes. Yes. Let me address both those. I think why is the world moving into hydrogen? You see climate concerns, more and more governments, public companies promoting use of hydrogen as a fuel. It's practical. It's a low-carbon power source, and it's a necessary complement to other clean power technologies. Low-carbon hydrogen can be manufactured to the blue hydrogen route or the blue -- green hydrogen route we talked about. But it can be stored for long-term use. It can be used for heating, electricity generation or transportation. But why is the world moving now? I think why the world is moving now is you see a confluence of factors. You have Paris Accord, the pledges by companies in response to consumer pressure, investor pressure and also the technology coming together. So the regulation, public sentiment, the technology. And this new technology I spoke about, you can develop a low-carbon hydrogen at a profitable. I think that's the key piece here. We're seeing increased investment in blue hydrogen, which is manufactured from natural gas through carbon sequestration. In green, green hydrogen is the early stage investment. We talked about that. It can be produced from wind and solar. But it's also picking up, but still is in early stage.

And from that perspective, what is the role of carbon capture? And how is Honeywell involved?

Sure. Absolutely. So what we see is even with the rapid growth of renewable power, renewable fuels I spoke about earlier, our clean hydrogen initiatives. There's still -- we still need to do more. Studies show that it still won't be sufficient to meet our needs for limiting greenhouse gas emissions to what the world wants to see. It's just simply, more has to be done. And that's where CO2 sequestration capture and separation comes in. Specifically, our role is in the CO2 separation and capture by separating and sequestering the CO2 in available underground caverns. The combined effect with the kind of sustainable energy innovation that I talked about earlier, along with the carbon capture, is a critical part to meet our emissions reduction. And to give you an example, Honeywell is the largest provider of CO2 separation technology. And we have already delivered technologies with the capacity to capture and sequester up to 33 million tons -- million metric tons per year of CO2. And to just give you a basis of that, that's the equivalent of eliminating 7.2 million cars per year. Roughly half the cars in California to give you a basis.

And I guess on hydrogen and carbon capture, can you talk about any current projects?

Yes. I'll give you an example of 2 of the projects that are represented. But one example that we're doing in the space of carbon capture and sequestration is we have a project with a gas processing customer. We're capturing between 70% and 90% of CO2 from a natural gas feed from multiple floating production, storage and offshore units, commonly known as FPSOs and sequestering that CO2 to prevent those emissions from entering the atmosphere. On a different project in hydrogen, we've recently -- our technology has been selected for a very large project. That will capture and sequester up to 90% of CO2, made in the production of hydrogen and thus, green hydrogen.

Pretty cool. And I guess finally, remote and autonomous solutions, which is clearly a much bigger theme for Honeywell. But it would be really helpful if you could just tie this across the company because it just seems that it underpins a lot of what Honeywell is doing with its customers today and frankly, goes well beyond green initiatives.

Sure. Sure, Andrew. As a controls company, energy efficiency has always been a core promise to Honeywell's customers whether we are providing controls for buildings, an industrial facility or a plane. One of the foundational capabilities of our control solutions is to identify a target economic outcome for our customers using rigorous software controls to achieve that objective. For example, take a medium-sized plant. Our full software portfolio can deliver tens of millions of dollars in savings through optimization that saves energy and increase throughput. We have helped companies in a broad range of industries achieve these energy outcomes. For example, in refining, mining, pulp and paper and others. No competitor has the same breadth of automation systems coupled with control optimization software and process knowledge. There might be individual competitors in each area but no one that can deliver the complete outcome like we can. We are now at a new inflection point with customers moving on to the journey to autonomous. This will only increase the amount of automation in facilities, resulting in, in my view, a new category of benefits. Some industries are moving to full autonomy for safety, reliability and efficiency. Think of the future offshore platform or a mine or a modular hydrogen production, which we are talking about here. We won't need people on site. The processes will be fully automated, and it will be resilient to faults. We'll see these self-healing and self-controlling systems.

And again, just to tie it together with my last question today. So how does it open up new sectors? You sort of talked a little bit about it, but what is go-to-market strategy to approach new verticals for Honeywell?

Well, it has already opened up new markets for us, which is why we have been able to move so quickly into battery storage. But we think this is just starting. Other industries will adopt this remote and autonomous solutions to varying degrees. And there are some criteria based on which we think the adoption curve will be different for different customers and industry verticals. The -- if you have multiple geographically dispersed assets or assets in physically remote or unsafe locations, assets in industries where human resources are relatively expensive or let's say, assets in industries that don't require much direct interaction during normal operations, these are the sort of sectors that will most likely adopt remote and autonomous solutions the fastest.

This is great. So this was the last question for me. And before I turn it over to Mark, I want to thank Mark and Honeywell for making Ujjwal and Ben available and making me part of this presentation, which was very, very informative and interesting. And with that, I'll turn it over back to Mark. Mark? Thank you.

Great. Thank you, Andrew and Ben and Ujjwal, for the discussion, and thank you to everyone on the line for joining our first quarter 2021 leadership webcast. We're excited about the growth opportunities ahead for our sustainable solutions under Ben and Ujjwal's leadership within PMT. And we hope you all join us for our next webcast, which we will announce at a later date. We'll now conclude the webcast. Thank you, everybody.