Watsco, Inc.NYSE: WSO

2025 Watsco Investor Day

· Issued by Watsco, Inc.

Watsco Investor Day Conference

Entrepreneurship + Innovation | Fueling Growth and Industry Leadership December 11, 2025



Digital Ecosystem & E-commerce

Ed Gaffney, SVP Digital Transformation and Marketing, CE North America Kelly Harvey, President, Sunshine Air Conditioning, Belleview, FL

Chad Wetzel, President & GM, CE Florida & Texas Regions





Where We Started



8:28AM on March 3rd, 2015



It was at this point where CE started our digital journey and continued across the other Watsco business units.

Where We Are Today

$2.5BWatsco E-commerce Sales

  • $1.6B in E-commerce Sales at CE

  • 80% in some regions



    900,000+

    SKUs in PIM

    350-450 orders per hour

  • Approximately 750,000 orders annually

100,000 online chats

  • Our Customer Experience team supports customers

    Mon-Fri, 7AM-5PM in English, Spanish, and French

  • The product information database (PIM) has attributes for every item; images, descriptions, specifications, representing 30 million attributes

2.4 LIPI



  • The LIPI of e-comm orders is 26% greater than standard orders

    B2B Requires a Suite of Digital Solutions

    CE's Digital Ecosystem for

    our HVAC Contractors



    The Future Is Bright

    Everyday we push the boundaries of digital

    in the HVAC space.



    • Continue to innovate and launch new digital products and solutions for different journeys

    • Continue to identify ways to leverage AI

    • Our competitive advantage is the Watsco v

      ecosystem

      • Watsco/Watsco Ventures are the tip of the spear leading the technology charge

      • Constant communication with the field for ideation and enhancements

      • Best practice sharing and fostering collaboration across the business units

    • No other distributor in our industry comes close to this model!



Innovations in Pricing

Kristin Daniels, VP Pricing Strategy, Watsco Inc.

Brian O'Mahony, President, CE North America



Managing billions of potential price points

1,600+

Suppliers

200,000+

Products

130,000+

Customers

Over 2.6 Billion Combinations


Pricing Optimization

Prior to Investment

Today

Countless hours spent on adhoc analysis and tedious price maintenance

Analytical tools and rules-based mass maintenance readily available



Leadership lacked key performance indicators to understand pricing effectiveness

Performance metrics available to measure the impact of pricing actions







Pricing decisions implemented based on likelihood of profitable growth

Pricing decisions often implemented based on what was easiest to administer

VS

Pricing decisions made based on limited data, tribal knowledge, and siloed teams

Sales, Finance, Pricing, and Product Management teams work together leveraging rich data and analytics



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