Otis Worldwide Corporation · NYSE:OTIS

Otis Worldwide — Zardoya Otis — Shareholder Meeting (June 2020)

40 slides from Otis Worldwide's shareholder meeting presentation, Jun 16, 2020

  1. Slide 1: General Shareholders' Meeting

    Bernardo Calleja General Shareholders´ Meeting June 16, 2020

  2. Slide 2: Voting Process

    Voting Process • Remote participation recommended • Voting by shareholders who attend electronically until the voting period is declared closed • In the event that proposals are made on matters that do not appear on the Agenda, telematic assistants will be able to make their votes from the moment th

  3. Slide 3: In memoriam

    In memorian D. Jose María Loizaga Viguri, Vice President of the Board of Directors of Zardoya Otis, S.A. since 1973 © 2020 Zardoya OTIS S.A. slide3

  4. Slide 4: Economic environment

    Economic environment SPAIN MOROCCO PORTUGAL FINISHED HOUSES CPI 800 4% Spain 2007: > 500 thousands 600 2% 400 0,7% 0,3% 0% 200 0,0% 71.562 0 12.300 -2% 93 95 97 99 01 03 05 07 09 11 13 15 17 19 2012 2013 2014 2015 2016 2017 2018 2019 Source: Spain: Ministry of Development; Portugal: Euroconstruct So

  5. Slide 5: Total sales

    Total sales 778 784 802 746 22,6% 21,0% 22,8% 23,7% Export 67,5% Service 65,2% 64,8% 65,2% New Installations 12,2% 14,2% 9,8% 11,1% 2016 2017 2018 2019 (€ millions) © 2020 Zardoya OTIS S.A slide5

  6. Slide 6: Portis S.L., Automatic Doors

    Portis S.L., Automatic Doors Doors under maintenance (Thous. units) ~40 Total sales (million €) EBITDA (million €) 27 4,5 4 3 0,2 2002 2005 2008 2011 2014 2017 2018 2019 2002 2005 2008 2011 2014 2017 2018 2019 2002 2005 2008 2010 2011 2014 2017 2018 2019 COMMERCIAL INDUSTRIAL RESIDENTIAL HEALTH SECT

  7. Slide 7: Demographic environment. Outlook

    Demographic environment. Outlook • Life expectancy in Spain is one of the highest in the world Spaniards > 65 years * • In 10 years, 25% of the population in >65 Spain will be > 65 years 25% 29% 19% 2019 2029 2068 • People > 80 years old already * Source: INE represent 6.1% of the population © 2020

  8. Slide 8: Accessibility

    Accessibility - ▲Sales + 100% 4 Mill. € 2018 2019 Wheel Chairs Platforms & Stairlifts Straight and curved sections Personal attention: 24 hours a day. 365 days a year Our Accessibility department offers free advice for installation © 2020 Zardoya OTIS S.A. slide8

  9. Slide 9: Accessibility. Potential market

    Accessibility. Potential market 37% of the buildings are not accessible from the public road 28% of existing elevators are not accessible from the doorway There are still 300,000 buildings without a lift for 4 or more floors * Fuente: Fundación Mutua de propietarios e INE © 2020 Zardoya OTIS S.A. sl

  10. Slide 10: Gen2 Fit

    ® ► Very reduced hoistways ► Elevators starting in one passenger capacity ► Minimum consumption MINIMUM SPACES WITH GREAT ► 100 trips autonomy POSSIBILITIES without connection to the network Gen2 Fit ® ► Energy regeneration Gen2 Fit ® © 2020 Zardoya OTIS S.A. slide10

  11. Slide 11: Marine

    Marine Installed lifts 94 11 2016 2017 2018 2019 © 2020 Zardoya OTIS S.A. slide11

  12. Slide 12: Zardoya Otis Group historical background

    2020 Zardoya OTIS Group Andorra, Eleva LV3 (Accesibility), Limarlift 2018 2019 historical ENOR (Marine) 2013 background OTIS MOROCCO 2007 ROLLTORE (Doors) 2005 ACRESA 1995 OTIS ELEVADORES PORTUGAL 1993 SCHNEIDER (1885) EGUREN 1986 MUNAR Y GUITART 1977 SCHNEIDER OTIS (1965) ZARDOYA OTIS 1972 OTIS (18

  13. Slide 13: Digital transformation. Concept

    Digital transformation. Concept Vision Customer/ User Data Communication Know-how Service Big data & analytics Sensors Cloud Advanced monitoring Personalized service OtisLine © 2020 Zardoya OTIS S.A. slide13

  14. Slide 14: Digitization plan. Connectivity

    Digitization plan. Connectivity Our GOAL CONNECTED ELEVATORS 200.000 connected • Remote monitoring elevators • Content distribution in 2024 2019 2020 2021 2022 2023 Investment: 60 millions € until 2023 © 2020 Zardoya OTIS S.A. slide14

  15. Slide 15: Corporate Social Responsibility

    Corporate Social Responsibility Diversity and inclusion Protection of children Health & Wellness “Todos somos todos” program Corporate Volunteers with “Special “Health & Wellness” program Olympics” and “Crusade for the children” programs Solidarity race Acknowledgments Partners & Associates © 2020 Z

  16. Slide 16: Corporate Social Responsibility

    Corporate Social Responsibility © 2020 Zardoya OTIS S.A. slide16

  17. Slide 17: Gender diversity

    Gender diversity Headcount New indirect employees 2019 2019 11% 42% 89% 58% Men Women Men Women © 2020 Zardoya OTIS S.A. slide17

  18. Slide 18: Key data as of November 30, 2019

    Key data as of November 30, 2019

  19. Slide 19: Profit after taxes and Consolidated sales

    Profit after taxes and Consolidated sales EBITDA Profit after taxes (€ millions) (€ millions) 227,8 220,8 208,7 208,8 152,6 152,7 145,7 140,6 2016 2017 2018 2019 2016 2017 2018 2019 Consolidated Sales (€ millions) 802,4 778,3 784,4 746,0 Madrid Underground 2016 2017 2018 2019 © 2020 Zardoya OTIS S.A

  20. Slide 20: New Installations Sales

    New Installations Sales (€ millions) +18,8% +10,9% 113,7 +18,3% 95,7 Osiris Building Torre Rioja - Madrid +15,8% 86,3 73,0 2016 2017 2018 2019 Airbus Headquarters - Madrid © 2020 Zardoya OTIS S.A. slide20

  21. Slide 21: Service sales

    Service sales (€ millions) +1,7% +0,7% 520,1 +0,9% (2,1%) 511,5 507,8 503,2 Supreme Court - Madrid 2016 2017 2018 2019 Princesa Hotel - Madrid © 2020 Zardoya OTIS S.A. slide21

  22. Slide 22: Portfolio evolution – Number of units

    Portfolio evolution– Number of units SPAIN PORTUGAL MOROCCO Nov 2019 293.746 units IFEMA Convention Center - Madrid 59.933 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20

  23. Slide 23: Export Sales

    Export Sales (€ millions) Shipments by country +8,4% (3,8%) +9,4% (4,9%) 184,2 177,2 169,9 168,6 Europe 56% Middle North East Africa America 18% 1% 7% Latam Asia 8% 10% 2016 2017 2018 2019 © 2020 Zardoya OTIS S.A. slide23

  24. Slide 24: Orders received New Installations

    Orders received New Installations Portugal (€ millions) Morocco Spain 363 364 +6,8% Ágora - City of Arts and 339 +7,0% 340 Science - Valencia +19,2% (6,2%) Internacional Hospital Açores - Portugal 2016 2017 2018 2019 OCP Group - Marruecos © 2020 Zardoya OTIS S.A. slide24

  25. Slide 25: Backlog of unfilled orders

    Backlog of unfilled orders (€ millions) Portugal Morocco 186 +13,2% Spain 164 164 +20,4% +0,1% 136 City of Justice - Albacete +14,6% Glicínias Shopping - Portugal 2016 2017 2018 2019 Tazi Palace - Marruecos © 2020 Zardoya OTIS S.A. slide25

  26. Slide 26: Stock Market data as of December 30, 2019

    Stock Market data as of December 30, 2019

  27. Slide 27: Shareholder remuneration 2019

    Shareholder remuneration–2019 Gross per Date Charged to Shares entitled Total gross share April 10th 0,080 € 1st interim 2019 470.464.311 37.637.144,88 € (*) July 10th 0,080 € Reserves 470.464.311 (**) 37.607.404,40 € October 0,080 € 2nd interim 2019 470.464.311 37.606.275,36 € 10th January 0,080 €

  28. Slide 28: % Market value variation vs Ibex 35

    % Market value variation vs Ibex 35 Zardoya Otis - % Market Value Variation 30,0% IBEX 35 Index - % Variation 20,0% 13,1% 10,0% 11,8% 3,1% 0,0% -10,0% -20,0% (16,9%) Source: www.bolsamadrid.es -30,0% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY -40,0% 2019 2020 slide28

  29. Slide 29: Business evolution in the first quarter of 2020

    Business evolution in the first quarter of 2020

  30. Slide 30: 1st quarter 2020 - Results

    1st quarter 2020 - Results 1er QUARTER 1er QUARTER (million €) % VAR 2019 2020 NEW INSTALLATIONS 24,8 29,4 18,2% SERVICE 129,0 132,4 2,7% EXPORT 40,6 37,6 (7,3%) TOTAL 194,4 199,4 2,6% 1er QUARTER 1er QUARTER (million €) % VAR 2019 2020 EBITDA 48,4 48,4 0,1% PROFIT BEFORE TAX 43,3 42,9 (0,9%) PROFIT

  31. Slide 31: 1st quarter 2020 - Orders received and backlog

    1st quarter 2020 - Orders received and backlog of unfilled orders ORDERS RECEIVED BACKLOG OF UNFILLED ORDERS VAR % VAR % 1er QUARTER 2020 / 2019 1st QUARTER 2020 / 2019 + 29,5% + 15,2% Iberia Tower - Valencia Porto Pi Shopping Centre Palma de Mallorca Lisbon Underground W-Hotel by Marriot - Portugal

  32. Slide 32: 1st quarter 2020 – Units under maintenance contract

    1st quarter 2020 – Units under maintenance contract + 1,1 % 1er quarter 1er quarter 2019 2020 290.335 293.636 Units Units © 2020 Zardoya OTIS S.A. slide32

  33. Slide 33: Proposal of the Board of Directors

    Proposal of the Board of Directors Gross per Date Charged to Shares entitled Total gross share Paid 0,080 April 9th, 1st interim 2020 470.464.311 37.637.144,88 € euros 2020 Proposal of second dividend for a gross amount of 0,06 euros per share (July 10th 2020) slide33 © 2020 Zardoya OTIS S.A.

  34. Slide 34: Covid-19

    Covid-19 PREVENTION IMPACT IN ACTIVITY ► Specific risk assessment ► Cessation of activity in shopping malls and hotels ► Continuous review of preventive plans ► Interruption of assembly activities ► Anticipation and application of current regulations at ► Supply chain difficulties in our factories a

  35. Slide 35: Corporate Governance

    Corporate Governance OTIS

  36. Slide 36: Corporate Governance

    Corporate Governance • Incorporation of the best current corporate governance uses and practices • Regulations of the Audit Committee • Nominating and Compensating Commission • Good Governance of Listed Companies slide36 © 2020 Zardoya OTIS S.A.

  37. Slide 37: Reorganization of the Board of directors

    Reorganization of the Female Representation Board of directors 2016 9,09% 2020 42,86% 11 ► 7 Bernardo Calleja Fernández - President and CEO Hombres Mujeres Hombres Mujeres José Miguel Andrés Torrecillas - Coordinating Director and President of the Nominating and Compensating Commission Independent D

  38. Slide 38: Otis Worldwide Corporation: change of majority shareholder

    Otis Worldwide Corporation Change of majority shareholder UTC OTIS 50,01% 50,01% slide38 © 2020 Zardoya OTIS S.A.

  39. Slide 39: Zardoya Otis Group I+D

    Zardoya Otis Group 802 5.600 3 MILL. EMPLOYEES FACTORIES CONSOLIDATED SALES I+D 141 One of the world´s MILL. biggest design and engineering > 293.746 centers UNITS UNDER MAINTENANCE P.A.T. Fuente: memoria anual Zardoya Otis 2019 slide39 © 2020 Zardoya OTIS S.A.

  40. Slide 40: Zardoya Otis, S.A.

    OTIS ZARDOYA OTIS, S.A.

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