Slide 1: Creating the Global Leader in Intelligent Climate and Energy Solutions
Creating the Global Leader in Intelligent Climate and Energy Solutions
Slide 2: Cautionary Statement
Cautionary Statement This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide management's current expectations or pla
Slide 3: Q1 & FY 2023 Summary
Q1 & FY 2023 Summary Q1 2023 – Solid Quarter Highlights Sales $5,273M Organic* +4% Y/Y High-teens aftermarket growth Adjusted Operating Profit* $642M Adjusted EPS* $0.52 Strength in commercial HVAC, light Free Cash Flow* $50M commercial HVAC, controls and global truck/trailer 2 Full-Year 2023 Guidan
Slide 4: Carrier Since Spin: Commitments Made, Commitments Kept
Carrier Since Spin: Commitments Made, Commitments Kept Gained share across our markets Superior Shareholder Return** Drove consistent double-digit aftermarket growth 229% Launched differentiated, digital platforms and 3 introduced industry-leading new products Expanded margins ~150bps over past two
Slide 5: Transforming Carrier's Future
Transforming Carrier’s Future Vision Creating the global leader in intelligent climate and energy solutions Strategic Priorities Global leadership in our addressable markets with highly differentiated channel access Most comprehensive and differentiated suite of sustainable technology 4 and services
Slide 6: What We Are Announcing Today
What We Are Announcing Today Add Exit Carrier Post-Transactions A higher growth and focused Viessmann Climate Fire & Security and intelligent climate and Solutions Commercial Refrigeration energy solutions company 5 Premier company in the Simpler, differentiated Increased focus on fastest-growing he
Slide 7: Climate Solutions: A Century of Innovation
Climate Solutions: By Product By Geography A Century of Innovation Heat Pumps and Related Accessories Solar PV** & Battery Others Germany At a Glance China Headquarters Allendorf, Germany Digital & Services Belgium Employees ~11,000 Gas & Poland 6 Other Hydrogen-Ready Boilers and France Italy Instal
Slide 8: Two 100 Year-Old Start-Ups
Two 100 Year-Old Start-Ups Two Storied Two transformed, Creating a Global Legacies rapid-innovation cultures Climate Champion Willis Carrier Invented modern air conditioning in 1902 7 Viessmann Family Established European heating market leadership position Deeply respected brands and established cha
Slide 9: Carrier and Viessmann Climate Solutions: A Global Climate Champion
Carrier and Viessmann Climate Solutions: A Global Climate Champion Americas Europe Asia Pacific Commercial HVAC 8 Residential and Light Commercial HVAC Transport Refrigeration Leader in all major regions
Slide 10: Climate Solutions: A Game Changing Opportunity
Climate Solutions: A Game Changing Opportunity Rapid ENERGY TRANSITION The PREMIER ASSET in the Positions Carrier to provide in Europe driving sustainable European climate and renewable and COMPLETE and step change in growth energy transition market ENERGY SOLUTIONS globally Heat pump air-to-water i
Slide 11: Megatrends Fueling Step-Change in Growth
EUROPEAN ENERGY TRANSITION Megatrends Fueling Step-Change in Growth Climate Change and Energy Government Regulation Sustainability Security and Incentives 10 EU commitment to cut emissions by 55% Targeted reduction in reliance on Russian Adding 10M heat pumps in the next by 2030 natural gas five yea
Slide 12: Significant Growth Opportunity for Climate Solutions in Europe
EUROPEAN ENERGY TRANSITION Significant Growth Opportunity for Climate Solutions in Europe Heat pump air-to-water Residential battery storage Residential solar PV installed base* installed base* installed base* # of units (M) # of units (M) # of units (M) 11 40.0 3.9 15.8 10% 25% 21% CAGR CAGR CAGR 6
Slide 13: Creating Exceptional Opportunity in Heat Pumps
EUROPEAN ENERGY TRANSITION Creating Exceptional Opportunity in Heat Pumps* Heat pump* annual Mixing up at a price Resulting in growth shipments to increase multiple of 2.5 – 4.0x of EU heat pump* by 4-6x by 2030 vs boiler segment by $10B # of units Market OEM price 12 $15B +18-26% 6-10M 2.5 - 4.0x +
Slide 14: Highly Differentiated Channel, Premium Brand
PREMIER ASSET Highly Differentiated Channel, Premium Brand Highly Differentiated Channel Iconic Brand that Commands Provides Strategic Advantage Premium Pricing * 13 * *Sources: Marktintern Leistungsspiegel, Yougov
Slide 15: Product Leadership and Premier Innovation
PREMIER ASSET Product Leadership and Premier Innovation Natural refrigerant Breakthrough designs, Extensive service leadership inspirational products and aftermarket SubsidyService Heat 14 Vitocal 250-A Heat Pump with Viessmann Invisible Comprehensive service portfolio Natural Refrigerant Natural re
Slide 16: Viessmann Climate Solutions: Superior Growth Profile
PREMIER ASSET Viessmann Climate Solutions: Superior Growth Profile Sales EBITDA* Double-digit Double-digit CAGR CAGR projected projected through 2030 through 2030 €0.9B+ €5B+ +~15% CAGR 15 +~15% CAGR ~€4B ~€0.7B 2020 2023E 2025E 2020 2023E 2025E Viessmann increases Carrier’s revenue growth profile b
Slide 17: An Interconnected Climate Ecosystem
COMPLETE ENERGY SOLUTIONS An Interconnected Climate Ecosystem End Users: ViCare Installers: 3rd party devs: ViGuide Vi Developer Community Unified OS: 16 The full Viessmann product range Heat Pump Battery Solar PV Fully connected and interoperable suite of product and digital offerings for the home
Slide 18: Viessmann Climate Solutions: Most Comprehensive Solution Offering
COMPLETE ENERGY SOLUTIONS Viessmann Climate Solutions: Most Comprehensive Solution Offering Carrier and Viessmann Climate Solutions: EU Residential Market: Competitive Landscape Transformational Smart Home Solutions 17 Carrier to scale integrated home energy solutions globally
Slide 19: Driving Step Change in Integrated Climate Solutions
COMPLETE ENERGY SOLUTIONS Driving Step Change in Integrated Climate Solutions Up to ~20x ~5x 18 ~4x Boiler Heat pump Heat pump, solar PV, battery storage and services Integrated climate solutions drive significantly higher revenues and provide access to a fast-growing $35B total addressable market N
Slide 20: Carrier: A Proven Track Record of Integration
Carrier: A Proven Track Record of Integration >5 acquisitions post-spin Viessmann Climate Solutions: A well-run business to be seamlessly integrated Growth accelerated post-acquisitions Synergies on track to HVAC 19 business-case, or better Leadership talent retained Residential Viessmann Global Com
Slide 21: United by Common Purpose, Values and Culture
United by Common Purpose, Values and Culture PURPOSE PLANET PEOPLE PASSION PERFORMANCE Vision Purpose Creating solutions that matter for people and our planet We co-create living spaces for generations to come. 20 Values Values Respect, Integrity, Inclusion, Innovation, and Excellence Responsible, T
Slide 22: €200M of Cost Synergies
€200M of Cost Synergies Sourcing Outlook Leverage Carrier & Viessmann Climate Solutions spend for direct material sourcing Insource key Carrier & Toshiba components into Viessmann products (e.g., inverters, heat exchangers) Cross-leverage value engineering expertise €200M Cost synergies (vast majori
Slide 23: Viessmann Climate Solutions Transaction Overview
Viessmann Climate Solutions Transaction Overview PURCHASE PRICE • €12 billion enterprise value* CONSIDERATION / • 80% cash / 20% stock issued to Viessmann Family, with long-term commitment to hold Carrier shares FINANCING • €9.6B cash and 58.6M1 shares fixed at signing • Fully committed financing in
Slide 24: Fire & Security Overview
Fire & Security Overview MARKET BUSINESS POSITION BRANDS FIRE Residential Total Fire #1 ~$2.1B Commercial #2 2022 Sales Fire $3.6B ~17% Industrial 2022 Sales 2022 Adjusted #1 Fire EBITDA* Margin 23 SECURITY Access #2 ~$1.0B Solutions To Be Divested 2022 Sales UTEC CONTROLS $3.1B High-teens ~$0.1B ~$
Slide 25: Commercial Refrigeration Overview
Commercial Refrigeration Overview CABINETS Total ~$1.1B Sales ~$1.2B HSD 2022 Sales 2022 Adjusted EBITDA* Margin 24 MECHANICAL SYSTEMS To Be Divested ~$0.1B Sales ~$1.1B HSD 2022 Sales 2022 Adjusted EBITDA* Margin To be retained by Carrier *See appendix for additional information regarding non-GAAP
Slide 26: Summary
Transforming into a higher growth company Summary Sales (CAGR 2020 – 2023E) Mid-Teens 1 Transformational portfolio moves create premier climate and energy solutions provider 8% 2 Leading position in fast growing European climate and energy transition segment Viessmann Climate Solutions presents a ge
Slide 27: Appendix
APPENDIX 26
Slide 28: Carrier Q1 2023 vs. 2022 Sales Reconciliation
Carrier Q1 2023 vs. 2022 Sales Reconciliation Three Months Ended March 31, 2023 Compared with Three Months Ended March 31, 2022 (Unaudited) Factors Contributing to Total % change in Net Sales FX Acquisitions / Organic Translation Divestitures, net Other Total HVAC 6 % (2) % 18 % — % 22 % 27 Refriger
Slide 29: 2023 Adjusted Operating Profit Reconciliation
2023 Adjusted Operating Profit Reconciliation (Unaudited) Three Months Ended March 31, 2023 General Fire & Eliminations Corporate (In millions) HVAC Refrigeration Security and Other Expenses Carrier Net sales $ 3,622 $ 898 $ 869 $ (116) $ — $ 5,273 Segment operating profit $ 435 $ 108 $ 93 $ (38) $
Slide 30: 2022 Adjusted Operating Profit Reconciliation
2022 Adjusted Operating Profit Reconciliation (Unaudited) Three Months Ended March 31, 2022 General Fire & Eliminations Corporate (In millions) HVAC Refrigeration Security and Other Expenses Carrier Net sales $ 2,970 $ 976 $ 818 $ (110) $ — $ 4,654 Segment operating profit $ 470 $ 107 $ 1,218 $ (24)
Slide 31: Q1 2023 EPS Reconciliation
Q1 2023 EPS Reconciliation (Unaudited) Three Months Ended March 31, 2023 (In millions, except per share amounts) Reported Adjustments Adjusted Net sales $ 5,273 $ — $ 5,273 Operating profit $ 555 87 a $ 642 Operating margin 10.5 % 12.2 % Income from operations before income taxes $ 509 87 a $ 596 In
Slide 32: Q1 2022 EPS Reconciliation
Q1 2022 EPS Reconciliation (Unaudited) Three Months Ended March 31, 2022 (In millions, except per share amounts) Reported Adjustments Adjusted Net sales $ 4,654 $ — $ 4,654 Operating profit $ 1,737 (1,082) a $ 655 Operating margin 37.3 % 14.1 % Income from operations before income taxes $ 1,688 (1,1
Slide 33: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (Unaudited) Q1 Q2 Q3 Q4 FY Q1 (In millions) 2022 2022 2022 2022 2022 2023 32 Net cash flows provided by (used in) operating activities $ (202) $ 32 $ 790 $ 1,123 $ 1,743 $ 120 Less: Capital expenditures 56 66 91 140 353 70 Free cash flow $ (258) $ (34) $ 699 $ 983 $ 1,3
Slide 34: Net Debt Reconciliation
Net Debt Reconciliation (Unaudited) (In millions) March 31, 2023 December 31, 2022 Long-term debt $ 8,708 $ 8,702 33 Current portion of long-term debt 142 140 Less: Cash and cash equivalents 3,347 3,520 Net debt $ 5,503 $ 5,322
Slide 35: Amortization of Acquired Intangibles
Amortization of Acquired Intangibles (Unaudited) Q1 Q2 Q3 Q4 FY (In millions) 2022 2022 2022 2022 2022 HVAC $ 4 $ 4 $ 16 $ 22 $ 46 34 Fire & Security 1 1 1 1 4 Total Carrier 5 5 17 23 50 Associated tax effect (1) (1) (7) (4) (13) Net impact to adjusted results $ 4 $ 4 $ 10 $ 19 $ 37
Slide 36: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Unaudited) Year Ended December 31, 2022 Eimintions and General Corporate (In millions) HVAC Refrigeration Fire & Security Other Expenses Carrier Net sales $ 13,408 $ 3,883 $ 3,570 $ (440) $ - $ 20,421 Segment operating profit $ 2,610 $ 483 $ 1,630 $ (80) $ (128) $ 4,5