Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — BofA Securities Leveraged Finance Conference 2022
25 slides from Resideo Technologies's conference presentation, Nov 29, 2022
Slide 1: Investor Overview
Investor Overview Jason Willey, VP Investor Relations November 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements.” All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are f
Slide 3: Who is Resideo?
Who is Resideo? Products & Solutions A leading global provider of home air, Leading global wholesale distributor of water, security and energy products and low-voltage products, incl. security and fire solutions $5.8B 2021 Revenue $559M GLOBAL #1 Presence in 2021 Operating Income (1) 150M DISTRIBUTO
Slide 4: Foundation for Success
Foundation for Success UNMATCHED PRESENCE UNIQUE RELATIONSPHIP WHY WE WIN IN THE HOME WITH PRO Trusted product partner 150M HOMES 110,000+ Broad product offering PRO CONTRACTORS Omnichannel Many professional and OEM Service and support LEADING SECURITY relationships extend Longstanding reliability D
Slide 5: Broad Set of Products, Solutions and Services
Broad Set of Products, Solutions and Services SOLUTIONS & SERVICES • Energy management / demand response | Equipment predictive maintenance | Indoor Air Quality data insights | Remote monitoring and automation AIR SECURITY & WATER ENERGY SAFETY • Thermostats / Temp • Residential Intrusion • Potable
Slide 6: Exposure to Attractive Secular Trends
Exposure to Attractive Secular Trends Connected / Smart Home Energy Residential and Energy Delivery Home Management and Commercial Life Transitions Savings Safety • Smart thermostats • Energy efficient products • Leading physical security • Hydrogen – H2 ready • Water leak detection • Demand respons
Slide 7: Diversified Channel Strategy Focused on Pro Installer
Diversified Channel Strategy Focused on Pro Installer Resideo Pro Network Resideo Channels Over 110,000 Strong Products sold through Distributors and Security • Central to all our channels Dealers • Critical to new home construction and Partnerships with OEMs remodeling • Customers of our distributi
Slide 8: ADI Global Distribution: Leading Security Distribution Platform
ADI Global Distribution: Leading Security Distribution Platform $3.4B 1,000+ in 2021 global Track Record of Growth net sales suppliers 190+ 1M+ locations in distribution 6%+ 15 countries sqft CAGR space 1,200+ 17k+ $3.0B $3.4B sales transactions $2.7B $2.8B $2.4B $2.5B representatives per day $2.2B
Slide 9: Differentiated Value Proposition
Differentiated Value Proposition 2021 ADI Global Distribution Snapshot Sales by Sales by Product Category Geography (2) Physical locations, e-commerce and in- Omnichannel person consultative sales support EMEA 16% India Other Geographic 1% Local product availability in +190 markets ~30% Footprint Se
Slide 10: Investing for Revenue Growth and Margin Expansion
Investing for Revenue Growth and Margin Expansion • Enhance customer experience • Expand product technology offerings • Broaden market E-COMMERCE CATEGORY GEOGRAPHIC SALES FORCE ACCELERATION EXPANSION EXPANSION EFFECTIVENESS coverage • Website & App • Residential & Pro • Inside Account • CRM and Dat
Slide 11: Resideo Key Financial Trends
Resideo Key Financial Trends $M Revenue +8% Gross Margin (1) -150 Q3 2022 HIGHLIGHTS Y/Y 30% bps $1,750 29% • Mixed end market trends with $1,500 commercial categories driving ADI 28% growth and Air product strength at 27% $1,250 Products & Solutions offset by 26% slower Security sales $1,000 25% Q3
Slide 12: Products & Solutions Financial Trends
Products & Solutions Financial Trends P&S Revenue (1) +12% P&S Gross Margin (2) -530 Q3 2022 HIGHLIGHTS Y/Y bps $M $750 50% • Revenue grew 12% y/y driven by $600 First Alert acquisition and strong $450 realization on price actions, offset 40% $300 by FX headwinds and volume $150 declines $0 30% Q3 2
Slide 13: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue +5% ADI Gross Margin (1) +70 bps Q3 2022 HIGHLIGHTS $M Y/Y $1,000 20% • Revenue up 5% y/y driven by growth in North America with 16% acquisitions contributing $23M and $800 FX headwinds of $22M $600 12% • Growth in commercial categories Q3 20 Q4 2
Slide 14: Capital Structure
Capital Structure ($’s in Millions) Q3 2022 Tranche Amount Rating Cash and Cash equivalents $252 Corporate Rating Ba2 $500M Revolver due 2026 - Outlook Stable Term Loan B due 2028 $1,134 Total Secured Debt $1,134 Secured First Lien Debt Ba1 Net Secured Debt $882 Senior Unsecured Notes Ba3 Senior Not
Slide 15: Debt Fixed / Float Mix
Debt Fixed / Float Mix ($’s in Millions) Q3 2022 Fixed/ % of Effective Tranche Amount Floating Total Debt Rate $500M Revolver due 2026 Floating - - - (1) Unhedged Term Loan B due 2028 Floating $574 40% 5.12% (1) Hedged Term Loan B due 2028 Fixed $560 39% 3.18% Senior Notes due 2029 Fixed $300 21% 4.
Slide 16: Capital Allocation and Investment Priorities
Capital Allocation and Investment Priorities Inorganic Organic ADI Global Products & • Expect capital expenditures of ~$70M in 2022 Distribution Solutions • Targeted engineering and R&D investment to • Bolt-on M&A • Accelerate growth in drive future growth attractive categories • Adjacent categories
Slide 17: Sustainability
Sustainability More information about Resideo’s sustainability journey can be found at www.resideo.com/sustainability 17 Resideo Confidential - © 2022 Resideo Technologies, Inc 17
Slide 18: Resideo Investment Opportunity
Resideo Investment Opportunity Positioned for Unmatched Product Value Compelling attractive channel leadership creating M&A financial secular relationships throughout the to enhance model with top trends in supporting home supporting market position line growth, connected home, professional comfort,
Slide 19: Our Vision Our Purpose
Our Vision We imagine a world where homes and buildings are good for the planet, where technology works to simplify life. In that world, people are healthy, happy, and secure. Our Purpose To help create this future, we will work every day… To simplify the connected world so people have peace of mind
Slide 20: Our Values
Our Values Start with Act as Pioneer Make a the customer one team the future difference We understand our We work together We embrace We care about the customers’ needs toward common change, boldly step long-lasting and pride ourselves goals, engaging from into the unknown, positive impact we on del
Slide 21: Appendix
APPENDIX 21 21 Resideo Resideo Confidential Confidential -- © © 2022 2022 Resideo Resideo Technologies, Technologies, Inc Inc
Slide 22: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) (1) (In millions) (1) Dollars reported in millions herein are computed based on the amounts in thousands. As a result, the sum of the components, and related calculations, reported in millions may not equal the total amounts due to rounding. (2) The prior year i
Slide 23: Consolidated Interim Statements of Operations (Unaudited)
Consolidated Interim Statements of Operations (Unaudited) (1) The prior year unaudited Consolidated Statements of Operations were reclassified to present Research and development expenses as a separate line item. Research and development expenses were formerly included within Selling, general and ad
Slide 24: Consolidated Interim Balance Sheets (Unaudited)
Consolidated Interim Balance Sheets (Unaudited) 24 Resideo Confidential - © 2022 Resideo Technologies, Inc
Slide 25: Consolidated Interim Statements of Cash Flows (Unaudited)
Consolidated Interim Statements of Cash Flows (Unaudited) 25 Resideo Confidential - © 2022 Resideo Technologies, Inc
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