Trane Technologies Plc · NYSE:TT

Trane Technologies — Ingersoll-Rand — Electrical Products Group 2019 Conference

15 slides from Trane Technologies's conference presentation, May 20, 2019

  1. Slide 1: Electrical Products Group 2019 Conference

    Electrical Products Group 2019 Conference May 20, 2019 1

  2. 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 proposed transaction between Gardner Denver Holdings, Inc. and the Company; the mix of and demand for our products; performance of the marke

  3. Slide 3: Executing a Consistent Strategy that Delivers Profitable Growth

    Executing a Consistent Strategy that Delivers Profitable Growth

  4. Slide 4: Transaction Benefits for Ingersoll Rand and Our Shareholders

    Transaction Benefits for Ingersoll Rand and Our Shareholders 4

  5. Slide 5: Transaction Benefits for Current Ingersoll Rand Shareholders

    Transaction Benefits for Current Ingersoll Rand Shareholders Terms of the Transaction Creates Pure-Play Global Leader in Climate Company § Reverse Morris Trust structures transaction to be tax-free Stronger Combined Industrial Company to both companies’ shareholders § At close, 50.1% of IndustrialCo

  6. Slide 6: Global Sustainability Megatrends Play to Strengths of Pure Play ClimateCo

    Global Sustainability Megatrends Play to Strengths of Pure Play ClimateCo URBANIZATION 60% of the population, or 5 billion people will be living in cities1* Our solutions for buildings, homes and transportation reduce greenhouse gas (GHG) emissions and energy intensity of the world through: RESOURCE

  7. Slide 7: ClimateCo Becomes Pure-Play Global Leader in Climate Control Solutions

    ClimateCo Becomes Pure-Play Global Leader in Climate Control Solutions for Buildings, Homes, and Transportation Pro Forma Segment Mix1 Revenue Streams1 HVAC FY2019E Commercial ~$12.9B Transport Refrigeration HVAC Equipment 32% 68% Revenues Parts and Services Equipment ● World leader in HVAC Resident

  8. Slide 8: ClimateCo Pro Forma Financials

    ClimateCo Pro Forma Financials (Based On January 2019 Guidance) ClimateCo FY2019E Pro Forma Metrics1 Climate Revenue ~$12.9B Climate Adj. EBITDA ~$2.0B Climate Adj. EBITDA Margin ~15.7% Tax Rate Less than 21% to 22% Working Capital Target 3% to 4% Capex 1% to 2% of Revenue Free Cash Flow >= 100% Adj

  9. Slide 9: ClimateCo Pro Forma Financials (Based On January 2019 Adj. EPS Guidance)

    ClimateCo Pro Forma Financials (Based On January 2019 Adj. EPS Guidance) $6.15 to $6.35 Illustrative full-year impact ~$0.35 $4.85 to $5.05 $4.40 to $4.60 ~$0.30 ~($1.75) ~($0.20) $0.6 to $1.0B debt pay down Stranded costs eliminated by 2021 $0.9 to $1.3B share repurchase 3 and M&A FY19 Guidance Ind

  10. Slide 10: First-Quarter 2019 Results

    First-Quarter 2019 Results 10

  11. Slide 11: First Quarter 2019 Summary: Strong Start to the Year

    First Quarter 2019 Summary: Strong Start to the Year • Top-tier EPS growth driven by solid execution − Adj. cont. EPS up 27% yoy • Robust revenue growth led by Climate segment despite tough yoy comps − Enterprise organic rev up 8% against 8% PY growth; Climate up 10% vs. 8% comp, Industrial up 3% vs

  12. Slide 12: Healthy End Markets - No Significant Change to Expectations

    Healthy End Markets - No Significant Change to Expectations • Major CHVAC markets remain positive – cont’d solid bookings and revenue growth • N.A. and Europe growth strong, outlook remains healthy Commercial HVAC • China demand strengthened throughout qtr, flat-ish growth against tough prior year c

  13. Slide 13: Healthy End Markets - No Significant Change to Expectations

    Healthy End Markets - No Significant Change to Expectations Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION 13

  14. Slide 14: Continued Execution of Balanced Capital Allocation Strategy

    Continued Execution of Balanced Capital Allocation Strategy 14 Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION

  15. Slide 15: Summary: Expect Cont'd Strong Rev, EPS and Free Cash Flow in 2019

    Summary: Expect Cont’d Strong Rev, EPS and Free Cash Flow in 2019 Strategy ● Strategy tied to attractive end markets supported by global mega trends Brands ● Franchise brands and businesses with leadership market positions Innovation ● Sustained business investments delivering innovation and growth,

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