Schindler Holding Ltd. · SIX:SCHN

Schindler — Schindler Hldg Ag Akt — Q3 2023 Earnings Presentation

35 slides from Schindler's earnings presentation, Oct 19, 2023

1. Slide 1: Results as of September 30, 2023

   Results as of September 30, 2023 October 19, 2023 © Schindler 2023 I © Schindler 2023 I We Elevate I October 19, 2023 I

2. Slide 2: Agenda

   Agenda 1. Progress update Silvio Napoli 2. Market update Silvio Napoli 3. Financial results Carla De Geyseleer 4. Outlook 2023 Carla De Geyseleer 5. Q&A Silvio Napoli/Carla De Geyseleer 2 I © Schindler 2023 I We Elevate I October 19, 2023 I Investor Relations

3. Slide 3: On track to deliver

   On track to deliver Improved profitability Order intake and Growing service revenue growth business Persistent year-on-year trend against tough market over five quarters Increasing network density and environment efficiency gains Intensifying Year-on-year Balance sheet foreign exchange Balanced glob

4. Slide 4: Agenda

   Agenda 1. Progress update Silvio Napoli 2. Market update Silvio Napoli 3. Financial results Carla De Geyseleer 4. Outlook 2023 Carla De Geyseleer 5. Q&A Silvio Napoli/Carla De Geyseleer 4 I © Schindler 2023 I We Elevate I October 19, 2023 I Investor Relations

5. Slide 5: Global outlook: China largest contributor to global economy growth 2024-2028

   Global outlook: in spite of slowdown, China largest contributor to global economy growth in 2024 – 2028 IMF: Average growth in GDP, % 10.0 7.7 8.0 7.0 6.3 6.0 5.2 4.7 4.2 4.5 3.9 3.5 3.7 4.0 2.3 1.8 1.9 2.3 2.3 2.0 1.4 1.5 0.9 0.0 China India United States Euro area ASEAN-5 Middle East and Central A

6. Slide 6: Global housing deficit to fuel future NI residential demand

   Global housing deficit to fuel future NI residential demand China current housing oversupply offset by global shortage Housing oversupply (+) / deficit (–) by country (million units, estimated) Housing deficit translated to potential E&E demand (1 000 units) India India 1’800 Indonesia Indonesia 320

7. Slide 7: Global Service markets to outgrow NI

   Global Service markets to outgrow NI Elevators & Escalators 2022 installed base 25000000 100% 100.0% 84% 90.0% 81% 78% 20000000 75% 80.0% 72% 68% 64% 70.0% 59% 15000000 53% 60.0% 48% 50.0% 10000000 40.0% 30.0% 5000000 20.0% 10.0% 0 0.0% China USA Iberia Italy South Germany Southeast France India Tür

8. Slide 8: Market update 2023

   Market update 2023 NI market contracting, Service and Modernization remain strong APAC Indicative Schindler Units China w/o China Americas EMEA Global revenue split New Installations ––– – ––– – –– Decline in floor India: strong North America: Northern Europe: High overall space started and growth d

9. Slide 9: China NI: no return to growth in the short term

   China NI: no return to growth in the short term Construction industry KPIs still trending down, housing inventory increasing, developers with less funding Floor space started declining for 4th consecutive year Housing inventory in lower-tier cities picking up again1) Months of 2 500 40% consumption

10. Slide 10: China: E&E transition to Service and Modernization

    China: E&E transition to Service and Modernization Growth in 2023 consistent with maturing market patterns China E&E installed base at ~50% of global market China to reach 50% of global modernization market by 2030 million units thousand units 16 600 14 500 12 400 10 8 300 6 200 4 100 2 0 0 2018 201

11. Slide 11: Balanced global footprint limits exposure to China downturn

    Balanced global footprint limits exposure to China downturn Less than one sixth of global revenue generated in China China revenue ~15% of global Hanover Switzerland Slovakia Shanghai Xuchang Huzhou Clinton ~90% of China production is for Ho Chi Minh City domestic market Pune Londrina China R&D cost

12. Slide 12: US: NI market weakening in spite of housing shortage

    US: NI market weakening in spite of housing shortage Recent softening across all major construction sector indicators Architecture Billings Index Dodge Momentum Index Building permits for multi-family housing (1 000 units, seasonally adjusted annual rate) 55 220 700 51.0 210 203 202 650 50.4 50.4 50

13. Slide 13: Brazil: positive NI market outlook

    Brazil: positive NI market outlook Housing deficit to drive future demand Brazil GDP Construction output value ($ bn) 250 4.6% 2.9% 2.9% 1.5% 2.0% 200 CAGR 1.3% 1.3% 1.1% 0.5% 2.1% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 2024E 2025E 150 3.4% -3.3% 4.3% -3.6% -4.1% 100 2.9% 50 Inflation 4.

14. Slide 14: India: biggest NI growth opportunity for years to come

    India: biggest NI growth opportunity for years to come Urban population to grow by >160 million by 2035 Housing units launched/sold across India’s 8 largest cities Elevator density Last 12 months growth (y-o-y): Installed units/1 000 inhabitants Launches: +18.6% Switzerland 100 Sales: +5.8% Spain 90

15. Slide 15: Agenda

    Agenda 1. Progress update Silvio Napoli 2. Market update Silvio Napoli 3. Financial results Carla De Geyseleer 4. Outlook 2023 Carla De Geyseleer 5. Q&A Silvio Napoli/Carla De Geyseleer 15 I © Schindler 2023 I We Elevate I October 19, 2023 I Investor Relations

16. Slide 16: Foreign exchange headwinds

    Foreign exchange headwinds Swiss franc strengthened across all major currencies significantly impacting top and bottom line CHF vs. major currencies Impact on order intake, revenue and EBIT 140 9M 2023 (CHF million) Order intake Revenue EBIT 0 120 -100 – 52 CNY/CHF 100 -200 -300 80 –20% -400 USD/CHF

17. Slide 17: Focus on disciplined execution paying off

    Focus on disciplined execution paying off Pricing + Efficiency > Inflation Pricing > Inflation Efficiency 17 I © Schindler 2023 I We Elevate I October 19, 2023 I Investor Relations

18. Slide 18: Order intake and backlog margins continue to grow

    Order intake and backlog margins continue to grow Legacy backlog consumption in line with plan New Installations order intake margin Legacy backlog consumption New Installations order backlog margin (sequential development) 100% 0% YTD 2021 2022 2022 2023 2024 2025+ Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2

19. Slide 19: On track to deliver

    On track to deliver Order intake Revenue growth in LC resulting Operating cash flow increase Q3 2023 vs. Q3 2022 from strong order backlog up in LC driven by profit 4’900.00 4’700.00 execution 724 4’500.00 in LC in LC 4’300.00 -5.9% -2.7% -5.0% +6.7% +3.8% +7.9% +4.7% +10.0% +15.2% +0.9% 4’100.00 3’

20. Slide 20: Key figures as of September 30, 2023: July to September

    Key figures as of September 30, 2023 July to September In CHF million Q3 2023 Q3 2022 r% r% in LC Order intake 2 657 2 740 –3.0 3.8 Revenue 2 812 2 965 –5.2 0.9 Operating profit (EBIT) 290 252 15.1 21.8 in % 10.3 8.5 Operating profit (EBIT), adjusted 311 1) 272 2) 14.3 21.0 in % 11.1 9.2 Financing a

21. Slide 21: Key figures as of September 30, 2023: January to September

    Key figures as of September 30, 2023 January to September In CHF million 9M 2023 9M 2022 r% r% in LC Order intake 8 595 8 967 –4.1 1.7 Revenue 8 534 8 310 2.7 8.5 Operating profit (EBIT) 892 655 36.2 44.1 in % 10.5 7.9 Operating profit (EBIT), adjusted 917 1) 738 2) 24.3 31.6 in % 10.7 8.9 Financing

22. Slide 22: Balance sheet

    Balance sheet Solid equity ratio and cash position provide strength and flexibility In CHF million 30.09.2023 in % 31.12.2022 in % 30.09.2022 in % Cash and cash equivalents 2 210 19.4 2 153 18.2 2 095 17.9 Other current assets 5 559 49.0 5 956 50.5 5 948 50.8 Total current assets 7 769 68.4 8 109 68

23. Slide 23: Order intake

    Order intake Growth in local currencies against tough market environment – strong foreign exchange headwinds July to September January to September in CHF million in CHF million Growth in local currencies (LC) +3.8% +1.7% Growth in reported currency –3.0% –4.1% 23 I © Schindler 2023 I We Elevate I O

24. Slide 24: Order intake

    Order intake Growth driven by strong Service, New Installations declined less than overall market, Modernization grew marginally Order intake growth Q3 2023 vs. Q3 2022 Order intake growth 9M 2023 vs. 9M 2022 APAC APAC China w/o China Americas EMEA Global China w/o China Americas EMEA Global Value (

25. Slide 25: Revenue

    Revenue Year-on-year growth in in all regions and product lines, negative FX impact reaching CHF –480 million in CHF million in CHF million EMEA +++ Americas ++ 2 713 2 965 3 036 2 796 2 926 2 812 China + 2 632 Rest AP +++ Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 0 to <5% + 5% to 10% + + >10% + + +

26. Slide 26: EBIT adjusted and EBIT

    EBIT adjusted and EBIT Profitability improvement, driven by operational efficiency gains, supply chain recovery and positive pricing effects EBIT adjusted (year-on-year) EBIT (year-on-year) in CHF million in CHF million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3

27. Slide 27: Year-on-year EBIT adjusted and EBIT

    Update pending Year-on-year EBIT adjusted and EBIT Negative FX impact of CHF –52 million in CHF million Top Speed 23 +14 Restructuring cost +10 Real estate gain +32 Others +2 EBIT adj. EBIT Opera- Δ Adjust- FX EBIT EBIT adj. 9M 22 9M 22 tional ments 9M 23 9M 23 8.9% 7.9% Margin 10.5% 10.7% 27 I © Sc

28. Slide 28: Net profit improvement of 230 bps YTD

    Net profit improvement of 230 bps YTD Earnings per share increased by 44% to CHF 5.96 July to September January to September in CHF million in CHF million 691 481 185 228 Q3 22 Q3 23 9M 22 9M 23 6.2% 8.1% Margin 5.8% 8.1% +23.2% Growth in reported currency +43.7% 1.59 1.97 Earnings per share (in CHF

29. Slide 29: Operating cash flow uptake

    Operating cash flow uptake Driven by higher operating profit and net working capital July to September January to September in CHF million in CHF million + Improved efficiency + Pricing + Supply chain recovery 29 I © Schindler 2023 I We Elevate I October 19, 2023 I Investor Relations

30. Slide 30: Agenda

    Agenda 1. Progress update Silvio Napoli 2. Market update Silvio Napoli 3. Financial results Carla De Geyseleer 4. Outlook 2023 Carla De Geyseleer 5. Q&A Silvio Napoli/Carla De Geyseleer 30 I © Schindler 2023 I We Elevate I October 19, 2023 I Investor Relations

31. Slide 31: Outlook 2023

    Outlook 2023 Fast evolving environment Persistent focus ▪ Service and Modernization remain strong Disciplined execution of strategic priorities focusing on: ▪ New Installations ▪ Efficiency and cost reduction drive and adaptation to o China: no recovery in the short term new market conditions o Amer

32. Slide 32: Q&A

    Q&A 32 I © Schindler 2023 I We Elevate I October 19, 2023 I Investor Relations

33. Slide 33: Additional charts

    Additional charts 33 I © Schindler 2023 I We Elevate I October 19, 2023 I Investor Relations

34. Slide 34: Quarterly overview: Key figures

    Quarterly overview Key figures In CHF million 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Order intake 2 657 3 049 2 889 2 994 2 740 3 063 3 164 Revenue 2 812 2 926 2 796 3 036 2 965 2 713 2 632 Operating profit (EBIT) 290 320 282 249 252 192 211 in % 10.3 10.9 10.1 8.2 8.5 7.1 8.0 Operating profit (EBIT), adjus

35. Slide 35: Calendar 2024

    Calendar 2024 2024 Full year results analyst and media conference February 14 Ordinary General Meeting Schindler Holding Ltd. March 19 Publication of key figures as of March 31 April Publication of Interim Report as of June 30 July Publication of key figures as of September 30 October . Contact: Mar

Schindler Hldg Ag Akt — Q3 2023 Earnings Presentation on 6ix