Carrier Global Corporation · NYSE:CARR
Carrier Global — Investor Day (May 2025)
136 slides from Carrier Global's investor day presentation, May 19, 2025
Slide 1: 2025 Investor Day
2025 Investor Day May 19, 2025
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. From time to time, oral or written forward-looking statements may also be included in other infor
Slide 3: Investor Day 2025
Investor Day 2025 Carrier Corporation – 2025 Investor Day 3
Slide 4: Opening comments
Opening comments Investor Day 2025 Michael Rednor Investor Relations Carrier Corporation – 2025 Investor Day 4
Slide 5: Agenda
Agenda 8:00 – 8:30 AM Registration 8:30 – 8:35 AM Opening comments Michael Rednor Investor Relations 8:35 – 9:05 AM Strategic priorities David Gitlin Chairman & Chief Executive Officer 9:05 – 9:30 AM Business segments Climate Solutions Americas Gaurang Pandya President 9:30 – 9:45 AM Break 9:45 – 10
Slide 6: Strategic priorities
Strategic priorities Investor Day 2025 David Gitlin Chairman & Chief Executive Officer Carrier Corporation – 2025 Investor Day 6
Slide 7: Carrier: Our DNA
Carrier: Our DNA Purpose Enhancing the lives we live and the world we share Vision Global Leader in Intelligent Climate and Energy Solutions Continuous Culture / People Customer improvement Foundation The Carrier Way Customer Carrier obsession Excellence Carrier Corporation – 2025 Investor Day 7
Slide 8: Unleashing value creation with transformed Carrier
Unleashing value creation with transformed Carrier Phase 1 Phase 2 Phase 3 2020 - 2022 2023 - 2024 2025+ Accelerating growth and outsized performance Transformed the portfolio Built foundation and leveraged opportunity from spin Carrier Corporation – 2025 Investor Day 8
Slide 9: Transformed company profile since spin
Transformed company profile since spin Sales Adjusted operating profit1 Adjusted operating margin1 ~$23B ~16.75% ~$3.85B $17.5B F&S $2.2B 12.8% REF HVAC Spin2 2025 Spin 2 2025 Spin 2 2025 Outlook 3 Outlook 3 Outlook3 Improved company profile following transformation, including significant balance sh
Slide 10: Transformed Carrier is simplified, focused and balanced
Transformed Carrier is simplified, focused and balanced 2024 FY Revenue1 Simplified and focused Balanced Transportation Asia Pacific Americas Climate Global Solutions Europe HVAC Global Leader in Intelligent Climate and Energy Solutions 1. Excludes Commercial Refrigeration Carrier Corporation – 2025
Slide 11: Carrier overview
Carrier overview 2024 Results Leadership in all key segments with iconic brands $22.5B 15.8% Net sales Adjusted operating profit1 What we do Sustainable, competitive differentiators Focused, balanced portfolio Higher margin, growing aftermarket Leading channels and brands Climate Solutions Climate S
Slide 12: Leadership across all key segments
Leadership across all key segments ✓ = top 3 market share Market leadership1 Competitor A Competitor B Competitor C Competitor D Residential ✓ ✓ ✓ CS Americas Light Commercial ✓ ✓ ✓ Commercial2 ✓ ✓ ✓ Residential and Light Commercial ✓ ✓ CS Europe Commercial ✓ ✓ ✓ CS Asia Light Commercial ✓ ✓ Pacific
Slide 13: 2022 Investor Day: Value creation framework
2022 Investor Day: Value creation framework Above- Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth Re-invest in profitable growth Acquisitions / Commitments 6-8% organic >50 ~22% ongoing ~100% net share-count 2022 INVESTOR DAY revenue growth bps
Slide 14: Strategy to drive accelerated 6-8% organic revenue growth
Strategy to drive accelerated 6-8% organic revenue growth Product Aftermarket Systems Outgrow the market through Double-digit aftermarket Increase customer value and product differentiation, brands growth Carrier share of wallet and channels Market 6-8% Organic revenue growth, combined with margin e
Slide 15: Strategy to drive accelerated organic revenue growth
Strategy to drive accelerated organic revenue growth 2022-2024 Medium-term Key drivers CAGR1,2 CAGR2 Market 1% ~2-3% • Improvement in Europe, Asia and Transportation Product 1% ~1% • Share gains driven by differentiated products, brands and channels Aftermarket 2% ~2% • Continued double-digit growth
Slide 16: Significant secular tailwinds enabling sustainable growth
Market Product Significant secular tailwinds enabling sustainable growth Aftermarket Systems Demand for climate control Electrification Grid constraints Refrigerated truck trailer Global temp. change (ºC relative to 1900) Electricity % of final global energy Hourly US shortfall electricity generatio
Slide 17: Product differentiation
Market Product Product differentiation Aftermarket Systems Investments Scale Portfolio Outcomes R&D spend 5,000+ R&D engineers Innovative +50% Heat pump Battery storage ~50% sales from new products over the last three years Rotary VRF Inverter compressor ~$1B+ expected product growth above High- mar
Slide 18: Multi-brand, multi-channel approach
Market Product Multi-brand, multi-channel approach Aftermarket Systems New since 2022 #1 most valuable U.S. climate solutions brand1 Leading Trusted, iconic brand brands #1 climate solutions brand in Germany2 North America Largest RLC distribution and dealer network Europe Largest and most different
Slide 19: Market-leading installed base presents significant opportunity
Market Product Market-leading installed base presents significant opportunity Aftermarket Systems Installed base Potential lifecycle value Targeting DD CAGR (units) (multiple of equipment sale) Commercial ~400K ~5 – 10x Addressable aftermarket for Light Carrier installed Commercial ~3.5M ~1 – 3x bas
Slide 20: Targeting double-digit aftermarket growth…forever
Market Targeting double-digit aftermarket growth…forever Product Aftermarket Systems DD CAGR Proven playbook to continue delivering results targeted Focus areas 2024 Medium-term 9 Design for service ~35% ~65% 8 Parts capture Parts capture Parts capture Strategic pricing 7 Tiered offerings ~45% ~80%+
Slide 21: What is a system?
Market Product What is a system? Aftermarket Systems Product Systems Benefits to customers Solar Smart Thermostat panels • Seamless experience • Cost savings EV charger • Energy efficiency HVAC 72 72 Benefits to Carrier • Grow share of wallet Thermostat HVAC • Increase recurring Battery Water Heater
Slide 22: Owning the home and driving energy efficiency
Market Product Owning the home and driving energy efficiency Aftermarket Systems Home Energy Management (Europe) Home Energy Management (Carrier Energy - US) 6 PV Virtual Power Plant 7 ViCare 1 1 Heat pump 5 Wallbox 2 Ventilation 4 3 AC Energy providers PV Storage Smart 72 4 Thermostat Thermal stora
Slide 23: QuantumLeap for data centers
Market Product QuantumLeap for data centers Aftermarket Systems Fully integrated solution addressing data center thermal management needs Lifecycle Benefits to customers Air Cooled or Service Water Cooled Chillers • Superior efficiency • Improved reliability AquaEdge AquaForce 19XR 30XF Integrated D
Slide 24: Product monitoring and compliance
Market Product Product monitoring and compliance Aftermarket Systems Lynx: Intelligent and connected cold chain monitoring Benefits to customers Distribution Wholesale • Seamless integration across the supply chain • Proactive risk management • Significant time reduction for compliance Benefits to C
Slide 25: Accelerating organic growth drivers
Accelerating organic growth drivers Organic1 revenue growth | Medium-term CAGR HSD-DD M-HSD M-HSD M-HSD Climate Solutions Climate Solutions Climate Solutions Climate Solutions Americas Europe Asia Pacific, Middle East & Africa Transportation Strategy • Channel expansion • Grow Residential and • Chin
Slide 26: Carrier Excellence driving sustained margin expansion
Carrier Excellence driving sustained margin expansion Adjusted operating margin1 • Regional and best cost sourcing Supply chain >50 bps • Dual sourcing annually • Factory productivity Supply chain Factories • Footprint optimization • Automation Factories • Centers of excellence Overhead Overhead 15.
Slide 27: Digital capabilities enabling differentiation
Digital capabilities enabling differentiation Growth Drive revenue growth via Abound and Lynx Organizational ✓ Predictive analytics productivity ✓ Remote monitoring ✓ Recurring service revenue models Differentiation Differentiate products via AI-based features and functionality AI-enabled ✓ Smart bu
Slide 28: Disciplined capital allocation
Disciplined capital allocation Continued investment in organic growth Targeted bolt-on acquisitions Growing dividend with ~30% dividend payout ratio Share repurchases Flexibility to deploy ~$10B towards bolt-on acquisitions and share repurchases Carrier Corporation – 2025 Investor Day 28
Slide 29: Acquisition priorities
Acquisition priorities Growth strategies Priorities Products Best-in-class, global platforms Building controls Differentiated technologies Aftermarket Digitally enabled lifecycle solutions Services Digital differentiation and AI capabilities Systems Fully integrated systems End-to-end End-to-end liq
Slide 30: Key takeaways
Key takeaways Simplified, focused, balanced portfolio with market leading positions Positioned to accelerate organic revenue growth Executing playbook to drive continued margin expansion Driving continued mid-teens adjusted EPS growth ~$10B excess capital available to deploy towards M&A / share repu
Slide 31: Enhancing the lives we live and the world we share
Enhancing the lives we live and the world we share Carrier Corporation – 2025 Investor Day 31
Slide 32: Climate Solutions Americas
Climate Solutions Americas Investor Day 2025 Gaurang Pandya President Carrier Corporation – 2025 Investor Day 32
Slide 33: Climate Solutions Americas overview
Climate Solutions Americas overview 2024 Results Leading market positions2 with strong brands Residential #1 $10.5B 22.1% Light Commercial #1 Net sales Adjusted operating profit1 Commercial #3 What we do Sustainable, competitive differentiators Sales by business Sales by type Leading market position
Slide 34: Key highlights since spin
Key highlights since spin ✓ Delivered significant growth and margin expansion ✓ Expanded market share across major segments; doubled controls portfolio ✓ Winning through two significant regulatory transitions ✓ Achieved double-digit aftermarket growth; doubled attachment rates and quadrupled connect
Slide 35: Strategy to drive accelerated organic revenue growth
Strategy to drive accelerated organic revenue growth 2022-2024 Medium-term Key drivers CAGR1 CAGR1 Market 1% LSD • Sustainability, energy efficiency, replacement market Product 4% 1-2% • Differentiated technology focused on efficiency, energy resilience and growth verticals • Continue execution of p
Slide 36: Climate Solutions Americas: Strategic priorities
Climate Solutions Americas: Strategic priorities Revenue growth roadmap HSD-DD M-HSD MSD M-HSD Verticals market Product innovation focused innovation Digital offerings Digital Aftermarket Product innovation Vertical solutions Integrated systems Digital offerings $10.5B Home energy management systems
Slide 37: Climate Solutions Americas: Residential
Market Product Climate Solutions Americas: Residential Aftermarket Systems Growth Business Unit: M-HSD Market: LSD Market position1: #1 Differentiators Largest, most Multi-brand / multi-tier Product innovation exclusive channel strategy and platforming >300k dealers, 3,000 distributor pickup points
Slide 38: Climate Solutions Americas: Residential
Climate Solutions Americas: Residential Growth Business Unit: M-HSD Market: LSD Market position1: #1 Medium-term Medium-term growth drivers CAGR2 • Replacement market growth on ~30M+ installed base Market LSD • Growing addressable market Product • Expanding inverter technology and next-gen fan coil
Slide 39: Carrier Energy bringing HEMS to the U.S
Market Product Carrier Energy bringing HEMS to the U.S Aftermarket Systems U.S. energy peak load gap by 20301 Carrier solution for remaining gap Value to our stakeholders ✓ Accelerated profitable growth ~190 ~90 Carrier ✓ Increase recurring revenues GW GW ✓ Customer retention ~100 GW ✓ Offset peak l
Slide 40: Climate Solutions Americas: Light Commercial
Market Product Climate Solutions Americas: Light Commercial Aftermarket Systems Growth Business Unit: MSD Market: LSD Market position1: #1 Differentiators Largest, most Multi-brand / multi-tier Vertical market exclusive channel strategy innovation and solutions Increased efficiency by >50% with >300
Slide 41: Climate Solutions Americas: Light Commercial
Climate Solutions Americas: Light Commercial Growth Business Unit: MSD Market: LSD Market position1: #1 Medium-term Medium-term growth drivers CAGR2 Market LSD • Replacement market growth on ~2.5M+ installed base Product • Heat pumps and dual-fuel solutions 1-2% • Next-gen de-humidification solution
Slide 42: Climate Solutions Americas: Commercial
Market Product Climate Solutions Americas: Commercial Aftermarket Systems Growth Business Unit: DD Market: MSD Market position1: #3 Differentiators Vertical market Digitally enabled Leading building offerings aftermarket solutions automation and controls 1. Internal estimates Carrier Corporation – 2
Slide 43: Climate Solutions Americas: Commercial
Climate Solutions Americas: Commercial Growth Business Unit: DD Market: MSD Market position1: #3 Medium-term Medium-term growth drivers CAGR2 Market MSD • Grid resilience, data centers, mega-projects and large installed base • Modular heat pump solutions Product 1-2% • High efficiency integrated sys
Slide 44: Climate Solutions Americas: Commercial growth
Market Product Climate Solutions Americas: Commercial growth Aftermarket Systems Education and Other key Data centers Industrial healthcare verticals Market CAGR (medium-term)1 >20% HSD M-HSD Retail Artificial intelligence Reshoring Energy efficiency Growth drivers Warehouse AI factories Mega-projec
Slide 45: Data centers: Meeting the moment
Market Product Data centers: Meeting the moment Aftermarket Systems Robust industry demand1 Technology and investments Differentiated portfolio Integrated cooling CARR CAGR solutions ~25% 1 Market CAGR >20% QuantumLeapTM from Chiller to Chip 3 2 Digitally-enabled Building and services asset mgmt 1 T
Slide 46: Targeting double-digit aftermarket growth…forever
Market Targeting double-digit aftermarket growth…forever Product Aftermarket Systems Connected devices Controls revenues DD CAGR >2X targeted growth ~700K 3.5 cumulative 3 2020 2024 2020 2024 2.5 ~$2B1 2 Proven playbook to continue delivering results Focus areas 2024 Medium-term 1.5 Parts capture Ch
Slide 47: Carrier Excellence driving sustained margin expansion
Carrier Excellence driving sustained margin expansion Adjusted operating margin1 • In-region for region Supply chain >50 bps • Dual sourcing on critical components annually • Factory productivity Supply chain Factories • Platforming and SKU rationalization • Automation Factories • Economies of scale
Slide 48: Climate Solutions Americas: Key takeaways
Climate Solutions Americas: Key takeaways Growing Residential share through innovation, digitally-enabled ecosystem and increasing the addressable market Driving momentum in Commercial and Light Commercial with focus on vertical solutions Accelerating digital connectivity and value across the lifecy
Slide 49: Break
Break Investor Day 2025 Carrier Corporation – 2025 Investor Day 49
Slide 50: Climate Solutions Europe
Climate Solutions Europe Investor Day 2025 Thomas Heim President Carrier Corporation – 2025 Investor Day 50
Slide 51: Key highlights since spin
Key highlights since spin ✓ Created the leading HVAC player in Europe by combining with Viessmann Climate Solutions ✓ Increased market share in key countries and segments and delivered double digit growth in aftermarket ✓ Taking HEMS offerings to the next level ✓ Over-achieving cost and revenue syne
Slide 52: Climate Solutions Europe overview
Climate Solutions Europe overview 2024 Results Leading market positions2 with strong brands Commercial #1 $5.0B 9.4% Residential and Net sales Adjusted operating profit1 Light Commercial #2 What we do Sustainable, competitive differentiators Sales by business Sales by type Leading market positions i
Slide 53: Strategy to drive accelerated organic revenue growth
Strategy to drive accelerated organic revenue growth 2022-2024 Medium-term Key drivers CAGR1 CAGR2 Market (1%) LSD • Return to growth • Revenue synergies Product / mix 1% 3-4% • Heat pump mix-up • New product introductions • Accelerate aftermarket playbook Aftermarket 1% 2-3% • Service technician in
Slide 54: European market: Returning to growth
Market Product European market: Returning to growth Aftermarket Systems • European Union (EU): binding legislation mandate for climate neutrality by 2050 CO2 emission • Germany: constitutional mandate for climate neutrality by 2045 reduction • Europe: target to cut CO₂ emissions by 55% – and in Germ
Slide 55: RLC Europe heating market outlook
Market Product RLC Europe heating market outlook1 Aftermarket Systems Heat pumps Fossil fuel boilers (units in millions) (units in millions) (MSD) 6.2 CAGR 2.5 5.9 MT CAGR 5.5 1.7 1.3 2025 2027 2030 2025 2027 2030 Mix benefit driven by continued shift towards electrification 1. Source: BRG as of Apr
Slide 56: Climate Solutions Europe: Strategic priorities
Climate Solutions Europe: Strategic priorities Revenue growth roadmap HSD-DD HSD-DD HSD-DD Differentiated solutions Outsized growth in key verticals Heat pump growth Revenue synergies Revenue synergies Aftermarket $5B Aftermarket Systems Systems 2024 Residential and Commercial Medium-term Light Comm
Slide 57: Climate Solutions Europe: Growth verticals
Market Product Climate Solutions Europe: Growth verticals Aftermarket Systems Residential heating (Heat pumps) Data centers Buildings Industry Market CAGR (medium-term)1 MT >20% M-HSD MSD Climate neutrality Artificial intelligence Decarbonization Reshoring Growth drivers Decarbonization Internet pen
Slide 58: Differentiated RLC product portfolio driving accelerated growth
Market Product Differentiated RLC product portfolio driving accelerated growth Aftermarket Systems Differentiated products Differentiated channel ✓ Lowest noise at max power1 ✓ Unique direct-to-installer ✓ Highest efficiency at yearly seasonal performance factor1 ✓ >80K installation partners ✓ Award
Slide 59: Strong runway for revenue synergies
Market Product Strong runway for revenue synergies Aftermarket Systems Global revenue synergies Synergy drivers • Multi-brand with focus on heat pumps and cooling >$200M • Commercial applications and project synergies ~$100M • Increased cross-selling leveraging respective ~$25M channels Year 1 (2024
Slide 60: Strengthening the combined Viessmann and Carrier offerings
Market Product Strengthening the combined Viessmann and Carrier offerings Aftermarket Systems Viessmann and Carrier at Bayern Munich’s Allianz Arena Multi-brand, multi-channel Case-study: Germany’s first climate neutral village, Bracht ~$11M total solution value Viessmann PV Viessmann HPs Carrier Co
Slide 61: Targeting double-digit aftermarket growth…forever
Market Targeting double-digit aftermarket growth…forever Product Aftermarket Systems DD CAGR Proven playbook to continue delivering results targeted 1.8 Focus areas 2024 Medium-term Spare parts 50%+ 70%+ 1.6 Parts Capture management Parts capture Parts capture 1.4 Tiered offerings 150K+ 350K+ 1.2 Se
Slide 62: RLC: Viessmann systems are the key differentiator
Market Product RLC: Viessmann systems are the key differentiator Aftermarket Systems Key advantages 8 PV • All components harmonized using one central platform: Viessmann One Base 7 1 • Significant revenue mix-up factor ViCare 1 Heat pump • Heat pump up to 4x vs. boiler • System up to 8x vs. boiler
Slide 63: Increasing systems penetration through installation partners
Market Product Increasing systems penetration through installation partners Aftermarket Systems Targeting to double Viessmann System installers1 Tech and Financing 2x Outsized >5x annual revenue sales enablement options opportunity per installer High PV Incremental revenue potential of quality mount
Slide 64: Carrier Excellence driving sustained margin expansion
Carrier Excellence driving sustained margin expansion Adjusted operating margin1 • Carrier Alliance Supply chain 3-5 year target • Cost synergies 50-100 bps ~200 bps ~300 bps MT % • Automation and lean practices Factories • Facilities and manufacturing footprint Volume 9.4% Productivity • Streamline
Slide 65: Climate Solutions Europe: Key takeaways
Climate Solutions Europe: Key takeaways Leading climate solutions portfolio and brands across Europe Accelerating growth supported by secular trends and differentiated solutions RLC benefiting from HP and systems growth and Commercial targeting key growth verticals Targeting significant margin expan
Slide 66: Climate Solutions Asia Pacific, Middle East & Africa
Climate Solutions Asia Pacific, Middle East & Africa Investor Day 2025 Michael Gierges President Carrier Corporation – 2025 Investor Day 66
Slide 67: Climate Solutions AME
Climate Solutions AME Region overview Best-in-class assets and capabilities 6.4 Billion People1 45 Trillion GDP2 13,000+ 5,000+ (80% of global) (45% of global) Employees Dealers and distributors 60% of the3 ~4% Avg. 2,100+ 4 World energy consumption GDP growth rate2 R&D Brands engineers Contributing
Slide 68: Climate Solutions AME overview
Climate Solutions AME overview 2024 Results Leading market positions with strong brands Commercial $3.5B 13.3% Residential and Net sales Adjusted operating profit1 Light Commercial What we do Sustainable, competitive differentiators Sales by business Sales by region Leading position in Commercial wi
Slide 69: Key highlights since spin
Key highlights since spin ✓ Seamless integrations achieving synergy goals – Giwee, Toshiba and Viessmann ✓ Returned to profitability in Japan: from negative to double-digit operating margins ✓ Platforming and increased speed of product introduction with enhanced engineering capability ✓ Double-digit
Slide 70: Strategy to drive accelerated organic revenue growth
Strategy to drive accelerated organic revenue growth 2022-2024 Medium-term Key drivers CAGR1 CAGR1 • Growth markets: positive outlook outside China Market (LSD) LSD • New growth verticals and decarbonization • Differentiated products and solutions Product Flat ~2% • Multi-brand and multi-tier strate
Slide 71: Climate Solutions AME: Commercial growth
Market Product Climate Solutions AME: Commercial growth Aftermarket Systems Data centers Infrastructure Buildings Industrial Market CAGR (medium-term)1 >20% MSD MSD+ L-MSD Artificial intelligence Government funding Urbanization Footprint resilience Growth drivers Energy demand Events and projects De
Slide 72: Climate Solutions AME: RLC growth
Market Product Climate Solutions AME: RLC growth Aftermarket Systems Hospitality and Small buildings Infrastructure Residential healthcare Market CAGR (medium-term)1 L-MSD L-MSD MSD LSD Tourism Urbanization Public transport Urbanization Growth drivers Healthcare Decarbonization Government projects H
Slide 73: Climate Solutions AME: Geographic growth
Climate Solutions AME: Geographic growth Revenue growth roadmap MSD M-HSD HSD-DD DD Service growth DD with digital MSD Decarbonization Localization Enhancing Make in India Lifecycle systems Commercial Product portfolio Tier-city expansion Data centers Lifecycle systems Vertical expertise Vertical fo
Slide 74: Climate Solutions AME: Strategy by geography
Market Product Climate Solutions AME: Strategy by geography Aftermarket Systems Market Carrier CAGR1,2 CAGR1 Drivers to gain share Today’s Focus North Asia MSD • Lifecycle systems, retail expansion and product innovation India DD • Make in India, tier-city expansion and vertical focus Middle-East DD
Slide 75: North Asia targeted growth: Driving sustainable progress
Market Product North Asia targeted growth: Driving sustainable progress Aftermarket Systems Residential Commercial Aftermarket Elevate retail capabilities System solution expertise Service and modernization focus Projects | Retail momentum Real-estate | High-end industrial Dual-carbon goal
Slide 76: New economies: Driving above-market growth
Market Product New economies: Driving above-market growth Aftermarket Systems India Saudi Arabia DD DD CAGR CAGR Addressable market1 2025 Medium-term 2025 Medium-term Growth Rapid Low HVAC Infrastructure District Events and Data center pillars urbanization penetration investments cooling constructio
Slide 77: Climate Solutions AME: Aftermarket growth strategy
Market Product Climate Solutions AME: Aftermarket growth strategy Aftermarket Systems Proven playbook to continue delivering results DD CAGR targeted Focus areas 2024 Medium-term 1.8 Design for service ~25% ~50% 1.6 Parts Capture Parts capture Parts capture Digital pull through 1.4 Tiered offerings
Slide 78: Modernization: Focus on digitally-enabled lifecycle solutions
Market Product Modernization: Focus on digitally-enabled lifecycle solutions Aftermarket Systems Addressable market by solution tier Case study: Hospital in Singapore ~$10M total solution value System Building ✓ Operational reliability > 10x Airside ✓ Digital connectivity Plant room Controls 3x ✓ De
Slide 79: Climate Solutions AME: Systems solution case study
Market Product Climate Solutions AME: Systems solution case study Aftermarket Systems High performance chiller plant solutions Design Solution Sales Installation Service Upgrade Define performance Optimize system and Contract with lifecycle Sourcing, integrating, Continuous performance Plant-level r
Slide 80: Carrier Excellence driving sustained margin expansion
Carrier Excellence driving sustained margin expansion Adjusted operating margin1 • Material and logistics productivity Supply chain >50 bps • Dual-sourcing annually • Platforming and SKU rationalization Supply chain Factories • Footprint optimization • Manufacturing resiliency Factories • G&A produc
Slide 81: Climate Solutions AME: Key takeaways
Climate Solutions AME: Key takeaways Deliver innovative solutions to serve our customers Drive targeted growth strategy through tailored regional playbooks Accelerate expansion momentum in fastest growing economies Grow aftermarket double-digits Expand margins through operational excellence and tran
Slide 82: Climate Solutions Transportation
Climate Solutions Transportation Investor Day 2025 Edward Dryden President Carrier Corporation – 2025 Investor Day 82
Slide 83: Climate Solutions Transportation overview
Climate Solutions Transportation overview 2024 Results Leading market positions3 with strong brands Global Truck and Trailer Refrigeration #1 $2.7B 16.9% Global Container Refrigeration #1 Net sales2 Adjusted operating profit1,2 Cold Chain Sensors #1 What we do Sustainable, competitive differentiator
Slide 84: Strategy to drive accelerated organic revenue growth
Strategy to drive accelerated organic revenue growth 2022-2024 Medium-term Key drivers CAGR1,2 CAGR2 Market (1%) LSD • Customer fleet renewal cycle Product Flat 1-2% • Efficiency, global products and electrification Aftermarket 2% ~2% • Complete lifecycle solutions pull through Systems 0% 1-2% • Con
Slide 85: Global solutions and synergies
Global solutions and synergies Revenue growth roadmap1 LDD M-HSD MSD M-HSD Products: Products: Global products | Efficiency and electrification Sustainability $2.7B Aftermarket: Aftermarket: Parts | Services | Mods and upgrades Real-time connectivity Systems: Systems: Digital solutions End-to-end di
Slide 86: Market growth
Market Product Market growth Aftermarket Systems Key drivers Equipment medium-term CAGR (units) • Trade growth Container Container LSD • Aging fleet Americas AmericasTruck/Trailer • Customer need for cost of ownership reduction L-MSD Truck/Trailer Europe EuropeTruck/Trailer • European recovery and f
Slide 87: Leading efficiency, 15% better than peers
Market Product Leading efficiency, 15% better than peers Aftermarket Systems Carrier solution Value to our customers Advanced • 15% more fuel efficiency vs. peers1 Efficiency • Up to 40% reduction in CO2 emissions vs. legacy products 2 3 Advanced • Faster temperature pull down ensuring freshness Per
Slide 88: Leveraging differentiated Carrier technology
Market Product Leveraging differentiated Carrier technology Aftermarket Systems 2024 2026+ Key change Controller 1 Compressor 1 Individual Common Controller 2 Compressor 2 parts • Moving from individual regional modules Controller 3 Compressor 3 products to global products based on common modules Ke
Slide 89: Defining a more electric future
Market Product Defining a more electric future Aftermarket Systems • Flexibility and scalability for all applications and regulations • Global modular design for speed to market and cost efficiency • Real-time analytics utilizing digital tools Reefer • Operational efficiency and optimized performanc
Slide 90: Targeting double-digit aftermarket growth…forever
Market Targeting double-digit aftermarket growth…forever Product Aftermarket Systems DD CAGR Proven playbook to continue delivering results targeted Focus areas 2024 Medium-term 1.8 E-Commerce ~65% ~80% 1.6 Parts capture Parts capture Parts capture Catalog expansion 1.4 1.2 2nd Life contracts ~25% >
Slide 91: All the data, one place… end-to-end visibility
Market All the data, one place… end-to-end visibility Product Aftermarket Systems Total addressable market ~$8B Today Future Equipment Monitoring Primary Source Product Supply Distribution Wholesale Customer 3rd Party Homegrown Simplified end-to-end solution for customers, driving recurring revenue
Slide 92: Carrier Excellence driving sustained margin expansion
Carrier Excellence driving sustained margin expansion Adjusted operating margin1,2 • Total lifecycle cost management Supply Chain • Leveraging common platforms globally >50 bps • Product line simplification annually • Factory productivity Supply chain Factories • Footprint optimization Factories • E
Slide 93: Climate Solutions Transportation: Key takeaways
Climate Solutions Transportation: Key takeaways Global products, platforming and sustainability, enabling customer optionality and cost optimization Installed base fuels aftermarket growth Increasing connectivity and enhancing digital end-to-end solutions Continuing to drive margin expansion Carrier
Slide 94: Financials and capital deployment
Financials and capital deployment Investor Day 2025 Patrick Goris SVP & Chief Financial Officer Carrier Corporation – 2025 Investor Day 94
Slide 95: 2022 Investor Day: Value creation framework
2022 Investor Day: Value creation framework Above- Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth Re-invest in profitable growth Acquisitions / Commitments 6-8% organic >50 ~22% ongoing ~100% net share-count 2022 INVESTOR DAY revenue growth bps
Slide 96: 2025 Investor Day: Value creation framework
2025 Investor Day: Value creation framework Above- Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth Re-invest in profitable growth Acquisitions / 6-8% organic >50 ~21% ~100% net share-count revenue growth bps/year ongoing ETR1 of net income reduc
Slide 97: Summary of accelerated organic growth drivers
Above- Strong market Margin Tax Capital Summary of accelerated organic growth drivers revenue + expansion + efficiency + free cash + deployment flow growth Medium-term Priorities Key investments Organic sales growth • Commercial salesforce, service technicians, • Grow Residential and Commercial vert
Slide 98: …fueled by investments funded by productivity…
Above- …fueled by investments funded by productivity… Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth Global Global salesforce Americas and Europe research and development and service technicians RLC installers ~3% of sales ~3% of sales ~9K ~385
Slide 99: …and double-digit aftermarket growth
Above- …and double-digit aftermarket growth Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth Outsized growth potential – significantly underpenetrated vs. available market Drives customer stickiness and intimacy Targeting Addressable DD CAGR afte
Slide 100: Expanding operating margin through productivity
Above- Strong market Margin Tax Capital Expanding operating margin through productivity revenue + expansion + efficiency + free cash + deployment flow growth Adjusted Operating Margin2 R&D Selling 100 >50bps annually G&A >300 bps Cost base excluding R&D and selling: 16.5 – 17.0% 1 13.6% ~$16.5B COGS
Slide 101: Examples of productivity drivers
Above- Strong market Margin Tax Capital Examples of productivity drivers revenue + expansion + efficiency + free cash + deployment flow growth Carrier Excellence driving productivity Carrier Excellence reducing logistics spend 30% 20% 2025 Medium-term 2025 Medium-term Production time per unit Logist
Slide 102: Platforming – an additional productivity lever
Above- Platforming – an additional productivity lever Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth Current status In-process Outcomes Customer experience Controls 800+ different SKUs Common platform leading to ~10x SKU reduction with 95% comm
Slide 103: Adjusted effective tax rate
Above- Strong market Margin Tax Capital Adjusted effective tax rate revenue + expansion + efficiency + free cash + deployment flow growth ~22% ~21% 2025 Guide Medium-term Now expecting ~21% ongoing adjusted ETR under current tax legislation Carrier Corporation – 2025 Investor Day 103
Slide 104: Strong working capital performance…
Above- Strong working capital performance… Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth 2024 Working capital % of sales …with plenty of opportunities left • Accounts payable • Consolidating payment runs • Centralized vendor negotiations • Ext
Slide 105: …and disciplined capital expenditures…
Above- …and disciplined capital expenditures… Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth Focus areas Transformation Growth and ERP • New product development • Common global platforms • Network optimization and productivity ~2% of sales • Se
Slide 106: …and limited short-term debt maturities
Above- …and limited short-term debt maturities Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth ($ Millions) 3.6% weighted average coupon as of 3/31/2025 2,000 1,500 1,400 1,242 887 875 783 750 783 650 2025 2026 2027 2028 2029 2030 2031 2032 2033
Slide 107: Leads to significant capital deployment capacity
Above- Strong market Margin Tax Capital Leads to significant capital deployment capacity revenue + expansion + efficiency + free cash + deployment flow growth Acquisitions / share Priorities repurchases ~$10B Organic growth Free cash flow Inorganic growth to deploy over Bolt-on M&A medium-term ~$15B
Slide 108: Acquisition priorities
Above- Strong market Margin Tax Capital Acquisition priorities revenue + expansion + efficiency + free cash + deployment flow growth Priorities Acquisition decision framework Alignment with strategy Building controls Differentiated End-to-end technologies transportation solutions Free cash flow yiel
Slide 109: Active portfolio management
Above- Strong market Margin Tax Capital Active portfolio management revenue + expansion + efficiency + free cash + deployment flow growth 2020 – 2024 portfolio actions Portfolio action in-flight + – Riello • Acquired in 2016 • Toshiba • Beijer • ~$500M of revenue, ~80% Europe • Viessmann • Chubb • E
Slide 110: Key takeaways
Key takeaways Simplified, focused, balanced portfolio with market leading positions Positioned to accelerate organic revenue growth Executing playbook to drive continued margin expansion Driving continued mid-teens adjusted EPS growth ~$10B excess capital available to deploy towards M&A / share repu
Slide 111: 2025 Investor Day: Value creation framework
2025 Investor Day: Value creation framework Above- Strong market Margin Tax Capital revenue + expansion + efficiency + free cash + deployment flow growth Re-invest in profitable growth Acquisitions / 6-8% organic >50 ~21% ~100% net share-count revenue growth bps/year ongoing ETR1 of net income reduc
Slide 112: Break
Break Investor Day 2025 Carrier Corporation – 2025 Investor Day 112
Slide 113: Q&A
Q&A Investor Day 2025 Carrier Corporation – 2025 Investor Day 113
Slide 114: APPENDIX
APPENDIX Carrier Corporation – 2025 Investor Day 114
Slide 115: Leadership team
Leadership team Dave Gitlin Ajay Agrawal Adrian Button Francesca Campbell Edward Dryden Bobby George Patrick Goris Thomas Heim Chairman & CEO Global Services Operations Legal Climate Solutions Digital Finance Climate Solutions Business Development Transportation Europe Michael Gierges Milena Oliveir
Slide 116: David Gitlin: Chairman & Chief Executive Officer
David Gitlin: Chairman & Chief Executive Officer David Gitlin is Chairman & Chief Executive Officer of Carrier. He previously served as President & CEO and was elected Chairman of the Board in April 2021. Before joining Carrier, he was President and Chief Operating Officer of Collins Aerospace, whic
Slide 117: Gaurang Pandya: President, Climate Solutions Americas
Gaurang Pandya: President, Climate Solutions Americas Gaurang Pandya is President, Climate Solutions Americas, for Carrier. In this role, Gaurang is responsible for driving profitable growth through digitally enabled lifecycle solutions and a multi-brand, multi-tier channel strategy across the regio
Slide 118: Thomas Heim: President, Climate Solutions Europe
Thomas Heim: President, Climate Solutions Europe Thomas Heim is President, Climate Solutions Europe, for Carrier. In this role, Thomas is responsible for driving profitable growth through digitally enabled lifecycle solutions and a multi-brand, multi-tier channel strategy across the region. Thomas j
Slide 119: Michael Gierges: President, Climate Solutions Asia Pacific, Middle East & Africa
Michael Gierges: President, Climate Solutions Asia Pacific, Middle East & Africa Michael Gierges is President, Climate Solutions Asia Pacific, Middle East & Africa, for Carrier. In this role, Michael is responsible for accelerating growth through digitally enabled lifecycle solutions and a multi-bra
Slide 120: Edward Dryden: President, Climate Solutions Transportation
Edward Dryden: President, Climate Solutions Transportation Edward Dryden is President, Climate Solutions Transportation, for Carrier, leading the company’s global transport refrigeration and cold chain monitoring businesses. He is responsible for driving profitable growth through innovative and sust
Slide 121: Patrick Goris: Senior Vice President & Chief Financial Officer
Patrick Goris: Senior Vice President & Chief Financial Officer Patrick Goris is Senior Vice President & Chief Financial Officer of Carrier. His responsibilities include all aspects of financial management of the Company. In his role, he leads and provides strategic direction to a global team of tale
Slide 122: Use and definitions of non-GAAP financial measures
Use and definitions of non-GAAP financial measures Carrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial informati
Slide 123: FY 2025 Organic sales guidance
FY 2025 Organic sales1 guidance Current guide Segment (May 2025) Climate Solutions Americas (CSA) +HSD Residential +HSD - DD Light commercial (DD) Commercial +DD Climate Solutions Europe (CSE) +LSD Residential and Light commercial ~Flat Commercial +DD Climate Solutions Asia Pacific ME (CSAME) +LSD C
Slide 124: FY 2025 Profit and cash guidance
FY 2025 Profit and cash guidance Current guide Segment (May 2025) ~22.5% Margin CS Americas +~50 bps ~10.5% Margin CS Europe +~100 bps ~13.5% Margin CS Asia Pacific Middle East & Africa ~Flattish ~16.5% Margin CS Transportation +~250 bps Carrier adj. operating margin1 16.5 – 17.0% Margin +~100 bps A
Slide 125: 2024 and 2023 net sales growth
2024 and 2023 net sales growth Year Ended December 31, 2023 Compared with Year Ended December 31, 2022 (Unaudited) Factors Contributing to Total % change in Net Sales FX Acquisitions / Organic Total Translation Divestitures, net Climate Solutions Americas 5% 0% 0% 5% Climate Solutions Europe 1% 2% 1
Slide 126: 2024, 2023, and 2022 Adjusted operating profit reconciliation
2024, 2023, and 2022 Adjusted operating profit reconciliation (Unaudited) Year Ended Year Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2022 (In millions) Carrier Carrier Carrier Net sales $ 22,486 $ 18,951 $ 17,288 Operating profit $ 2,646 $ 2,160 $ 3,984 Reported operating marg
Slide 127: 2024 Adjusted COGS and G&A
2024 Adjusted COGS and G&A (Unaudited) Year Ended December 31, 2024 (In millions) Reported Non-GAAP Selling CCR Adjusted Operating expenses: Cost of goods sold $ (16,505) $ 1,013 $ - $ 644 $ (14,848) Selling, general and administrative (3,197) 162 1,413 69 (1,553) Total $ (19,702) $ 1,175 $ 1,413 $
Slide 128: 2024 EPS reconciliation
2024 EPS reconciliation (Unaudited) Year Ended December 31, 2024 (In millions, except per share amounts) Reported Adjustments Adjusted Net sales $22,486 $— $22,486 Operating profit $2,646 896 a $3,542 Operating margin 11.8% 15.8% Earnings before income taxes $2,274 831 a,b $3,105 Income tax (expense
Slide 129: 2023 EPS reconciliation
2023 EPS reconciliation (Unaudited) Year Ended December 31, 2023 Adjustme (In millions, except per share amounts) Reported Adjusted nts Net sales $18,951 $— $18,951 Operating profit $2,160 489 a $2,649 Operating margin 11.4% 14.0% Earnings before income taxes $1,999 538 a,b $2,537 Income tax (expens
Slide 130: 2022 EPS reconciliation
2022 EPS reconciliation (Unaudited) Year Ended December 31, 2022 (In millions, except per share amounts) Reported Adjustments Adjusted Net sales $ 17,288 $ — $ 17,288 Operating profit $ 3,984 $ (1,637) a $ 2,347 Operating margin 23.04% 13.58% Earnings before income taxes $ 3,823 $ (1,665) a,b $ 2,15
Slide 131: 2024 Segment results
2024 Segment results 2024 (In millions) Q1 Q2 Q3 Q4 Full Year Climate Solutions Americas Net sales $ 2,360 $ 2,865 $ 2,961 $ 2,341 $ 10,527 Segment operating profit 425 713 750 435 2,323 Segment operating margin 18.0 % 24.9 % 25.3 % 18.6 % 22.1 % Climate Solutions Europe Net sales $ 1,292 $ 1,194 $
Slide 132: 2023 Segment results
2023 Segment results 2023 (In millions) Q1 Q2 Q3 Q4 Full Year Climate Solutions Americas Net sales $ 2,215 $ 2,719 $ 2,694 $ 1,987 $ 9,615 Segment operating profit 332 579 660 260 1,831 Segment operating margin 15.0 % 21.3 % 24.5 % 13.1 % 19.0 % Climate Solutions Europe Net sales $ 522 $ 498 $ 453 $
Slide 133: 2024 and 2023 Free cash flow
2024 and 2023 Free cash flow (Unaudited) Year Ended December 31, (In millions) 2024 2023 Net cash flows provided by operating activities $ 563 $ 2,607 Less: Capital expenditures - continuing operations (519) (439) Less: Capital expenditures - discontinued operations (14) (30) Free cash flow $ 30 $ 2
Slide 134: 2024 CST excluding Commercial Refrigeration
2024 CST excluding Commercial Refrigeration (Unaudited) Year Ended December 31, 2024 (In millions) Reported CCR(1) Adjusted Climate Solutions Transportation Net sales $ 3,475 $ (762) $ 2,713 Segment operating profit 485 (28) 458 Segment operating margin 14.0% 3.7% 16.9% (1) Results of Carrier Commer
Slide 135: 2020 Results
2020 Results Not restated for continuing operations For the Year Ended (Unaudited) December 31, (dollars in millions - Income (Expense)) 2020 Carrier Net sales $ 17,456 Operating profit $ 3,083 Total restructuring costs (49) Total non-recurring and non-operational items 900 Adjusted operating profit
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