Trane Technologies Plc · NYSE:TT

Trane Technologies — Ingersoll-Rand — Investor Day (May 2015)

15 slides from Trane Technologies's investor day presentation, May 13, 2015

  1. Slide 1: Financial Summary

    am Ingersoll Rand. Financial Summary Sue Carter Senior Vice President and CFO 2015 Investor and Analyst Conference

  2. Slide 2: Adjusted Operating and EBITDA Margins Show Steady Improvements

    Adjusted Operating and EBITDA Margins GP cero rand Show Steady Improvements in Operating Performance 9 CAGR 2.6% 13.6% $12.9 12.3% $119 $120 © $12.3 11.6% pa 9.6% I 11.0% 2011 2012 2013 2014 2011 2012 2013 §=2014 Revenue §, Bil. = Operating Margin = EBITDA

  3. Slide 3: Balancing Capital Allocation Alternatives Creates Shareholder Value

    Balancing Capital Allocation Alternatives ap. Pa Creates Shareholder Value Balance Sheet + BBB Rating + No debt maturities until 2018 Organic Investment Competitive + New Product Dev. Dividend . peecieaevenll ‘i - Peer group payout : =Depreciation + 28% dividend Shareholder CAGR, 2011-15 Value M&A +

  4. Slide 4: Organic Investment

    Organic Investment GI ngersot Rand. Capital Expenditures ($M) * Continuing investments in New $242 $234 ~$250 Product Development and Business Operating System * Modest future CAPEX needs - Minimal “Bricks and Mortar” * Significant ongoing investment in ERP system 2013 2014 2015 - 2016F Annually I e

  5. Slide 5: Debt Maturity Profile

    Debt Maturity Profile GD ingerson rand. No near term maturities $, Mil 700 Putable Annually | 500 306 300 150 88 8 8 | a — 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2043 2044

  6. Slide 6: Strong Dividend Growth

    Strong Dividend Growth Adjusted EPS aT! 5a $3.33 $2.67 I il [ nl 2011 2012 2013 2014 GR) ingerson Rand. Annual Dividend Per Share 2011 «2012 2013 2014 2015F * $1.16 per share dividend for 2015 * 2015 dividend increased by 16% from 2014 * 28% dividend CAGR 2011 to 2015

  7. Slide 7: Share Repurchase

    Share Repurchase Avg. Shares outstanding, Mil TT 2011 2012 2013 2014 2015F GR) ingerson Rand. Share Repurchase, $M 1,375 1,162 1,200 Allegion “a 2011-2012, 20132014 a 363. (18420218 23.0 #Shares Purchased, Mil * New authorization in 2014 of $1.5B ; ~$900 Million remaining * ~98M shares for $4.6B for

  8. Slide 8: M&A Framework

    M&A Framework GI ngersot Rand. + Maintaining disciplined process; pipeline built from strategic plan Leverage existing businesses products, technologies and geographies Accretive to EBITDA, EPS and ROIC first full year of ownership Best talent on integration teams Will not overpay Cameron Centrifuga

  9. Slide 9: Balanced Future Cash Deployment

    Balanced Future Cash Deployment iy migerea Rand 100% ™ Share Repurchases 80% - = M&A or Share Rep. = Acquisitions 60% '— m Dividends = Debt Paydown 40% = 20% ~ 2011 «2012-2013. 2014). 2015 Future

  10. Slide 10: Free Cash Flow

    Free Cash Flow GD ingerson rand. $ Millions ~950 to 1,000 860 810 2013 , 2014 2015 Target Excludes restructuring, one-time spin costs and refinancing premium Long term goal 1X net income

  11. Slide 11: Full-Year 2015 Forecast

    Full-Year 2015 Forecast O Ad d Reve Operating g g Climate — Reported 2% to 3% 12.5% to — Organic--ExFX 4% to 5% 13.5% Industrial — Reported 13% to 14% : 14.5% to - oO EX-3%éJand 4% to 5% 15.5%" Cameron[+12%] Total Reported 4% to 5% 6 ai Organic 4% 105% «| eto 12% excludes inventory step-up costs of

  12. Slide 12: Changes From Prior Forecast

    Changes From Prior 2014 to 2016 forecast ap) lage son trae * GDP Growth - Slower than expected Asia and South America * 17% drop in Euro vs $ - Revenue drag offset by acquisitions - ($0.25) impact on EPS ¢ Lower than expected inflation ° End markets - US Institutional recovery just beginning - Stron

  13. Slide 13: Ingersoll Rand Targets 2013 to 2016

    Ingersoll Rand Targets 2013 to 2016 CD incest and. May 2015 Forecast Revenue Growth 4% to 5% peteent Income Growth 13% to 15% ‘/) Operating Margin Change 85 to 100 bps Adjusted EPS 15% to 20% CAGR 7) Based 24-26% tax rate Business Unit Operating Margins - Climate 13% to 14% in 2016 -__Industrial 15%

  14. Slide 14: Total Shareholder Return

    Ingersoll Rand GD ingersou pana. Total Shareholder Return % Change* 423 * Strong and liquid balance sheet * Cash flow to fund future growth Improving financial performance - Margins 308 222 - Working capital management 165 - ROIC * Balanced capital allocation based on creating shareholder value S&P5

  15. Slide 15: Ingersoll Rand - Inspiring Progress

    LEY Ingersoll Rand Inspiring Progress™

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