Trane Technologies Plc · NYSE:TT
Trane Technologies — Morgan Stanley 3rd Annual Laguna Conference 2015
16 slides from Trane Technologies's conference presentation, Sep 17, 2015
Slide 1: Mike Lamach, Chairman and CEO
Mike Lamach Chairman and CEO Morgan Stanley 3rd Annual Laguna Conference, September 2015
Slide 2: Safe Harbor
Safe Harbor This presentation includes “forward-looking statements,” which are statements that are not historical facts, including statements that relate to the mix of and demand for our products, performance of the markets in which we operate, our share repurchase program including the amount of sh
Slide 3: Our Model to Deliver Shareholder Value
Our Model to Deliver Shareholder Value Sustainable, Profitable Growth and Shareholder Value Accelerating Operational Balanced Revenue Growth Excellence Capital Allocation Well positioned in both Strong, recognized brands Leading market shares geographic and end markets 3
Slide 4: Employee Commitment, Engagement and Development Critical to Change Culture
Employee Commitment, Engagement and Development Critical to Change Culture Employee Engagement Score • Top-quartile performance for peer group and overall manufacturing companies • High participation rate at 95% Satisfaction Satisfaction • Improved on every survey dimension Pride • 95% retention of
Slide 5: Distinguished Safety Performance Due to Rigor, Engagement of Employees
Distinguished Safety Performance Due to Rigor, Engagement of Employees Total Recordable Incident Rate Lost Time Incident Rate 0.40 2.00 World Class Performance World Class Performance 0.30 1.50 1.00 0.20 0.50 0.10 0.00 0.00 Focus and Positive Outcomes are Continuing Year-Over-Year Year-Over-Year Q1
Slide 6: Our Business Operating System is Standard Framework for How We Operate
Our Business Operating System is Standard Framework for How We Operate Longevity Multi-year Performance Trend Over 5 Years Foundation of our commitment Top Top Top Top to operational excellence and Quartile Quartile Quartile Quartile growth excellence Revenue EPS TSR Employee Growth Growth Engagemen
Slide 7: Value Stream Expansion Offers Significant Opportunity to Grow and Expand Margins
Value Stream Expansion Offers Significant Opportunity to Grow and Expand Margins Product Growth Team-Led Value Streams Product Sales Force Engineering & Supply Capability & Management Technology Chain Channel Strategy Idea Customer & Launch Value Analytics Value Stream Discipline • Rigorous analytic
Slide 8: Ingersoll Rand Possesses Expertise to Address Pressing World Challenges
Ingersoll Rand Possesses Expertise to Address Pressing World Challenges Energy Consumption Urbanization Food & Water Scarcity Climate Change Industrial Productivity & Efficiency 8
Slide 9: Global Opportunities: Demand for Sustainable Growth
Global Opportunities Demand for Sustainable Growth 75% of infrastructure globally that will exist in 2050 has yet to be built In India, 85% of buildings that will exist in 2050 have yet to be built We will see a 70-85% increase in our urban population in the next 35 years The growing and urbanizing
Slide 10: Adjusted Operating and EBITDA Margins Show Steady Improvements in Operating Performance
Adjusted Operating and EBITDA Margins Show Steady Improvements in Operating Performance 13.6% 12.0% 12.3% $12.9 11.6% $11.9 $12.0 $12.3 8.7% 9.2% 9.6% 11.0% 2011 2012 2013 2014 2011 2012 2013 2014 10 Revenue $, Bil. Operating Margin EBITDA
Slide 11: Balancing Capital Allocation Alternatives Creates Shareholder Value
Balancing Capital Allocation Alternatives Creates Shareholder Value Balance Sheet • BBB Rating • No debt maturities until 2018 Organic Investment Competitive • New Product Dev. Dividend • BOS expansion • Peer group payout • CAPEX=Depreciation • 28% dividend Shareholder CAGR, 2011-15 Value M&A Share
Slide 12: Returned $5.5 B to Shareholders 2011-14
Returned $5.5 B to Shareholders 2011-14 Share Repurchase, $M Annual Dividend Per Share 1,375 $1.16 1,162 1,200 $1.00 $0.84 840 $0.64 $0.43 250 2015F 2011 2012 2013 2014 2011 2012 2013 2014 2015F #Shares 18.4 21.8 23.0 Purchased 36.3 • $1.16 per share dividend for 2015 Mil. • New authorization in 201
Slide 13: M&A Framework
M&A Framework • 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 Centrifugal Compres
Slide 14: Much Progress, More Opportunity Ahead
Much ProgressD More Opportunity Ahead • Strong momentum and further upside ‒ Attractive end markets ‒ Leading brands and growth through innovation ‒ Substantial position in developing markets with significant potential • Excellent management team executing consistently on strategy • Value creation m
Slide 15: 3Q Market Update
3Q Market Update No Change to 3Q EPS Forecast • End markets continue to be choppy. Taking cost reduction and restructuring actions in soft areas • Continuing difficult markets for Industrial across all regions and in Latin America • North America HVAC Institutional demand recovery, solid demand in C
Slide 16: For additional information please contact
For additional information please contact:: Joe Fimbianti 704-655-4721 - or- Janet Pfeffer 704-655-5319 16
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