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© 2021 OTIS WORLDWIDE CORPORATION.
Shareholder Briefing
As of October 25, 2021
Forward-Looking StatementsNote: All results and expectations in this presentation reflect continuing operations unless otherwise noted.This communication contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management’s current expectations or plans for Otis’ future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “confident,” "goals" and other words of similar meaning in connection with a discussion of future operating or financial performance or the proposed tender offer by Otis to acquire all of the issued and outstanding shares of Zardoya Otis, S.A (the "Tender Offer") or the separation and distribution. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, dividends, share repurchases, tax rates, research and development spend, credit ratings, net indebtedness and other measures of financial performance or potential future plans, strategies or transactions of Otis following its separation from United Technologies Corporation or in connection with the Tender Offer, including the estimated costs associated with the Tender Offer and the separation and distribution and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, Otis claims the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which Otis and its businesses operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues (including COVID-19 and its effects, among other things, on global supply, demand, and distribution disruptions as the outbreak continues and results in an increasingly prolonged period of travel, commercial and/or other similar restrictions and limitations), natural disasters and the financial condition of Otis’ customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) future levels of indebtedness, including as a result of the Tender Offer, and capital spending and research and development spending; (4) future availability of credit, including in connection with the financing of the Tender Offer, and factors that may affect such availability, including credit market conditions in the U.S. and other countries in which Otis and its businesses operate and Otis’ capital structure; (5) the timing and scope of future repurchases of Otis’ common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (6) fluctuations in prices of and delays and disruption in delivery of materials and services from suppliers; (7) cost reduction efforts and restructuring costs and savings and other consequences thereof; (8) new business and investment opportunities; (9) the anticipated benefits of moving away from diversification and balance of operations across product lines, regions and industries; (10) the outcome of legal proceedings, investigations and other contingencies; (11) pension plan assumptions and future contributions; (12) the impact of the negotiation of collective bargaining agreements and labor disputes; (13) the effect of changes in political conditions in the U.S., including the new U.S. Administration, and other countries in which Otis and its businesses operate, including China’s response to the new U.S. administration and the United Kingdom’s recent withdrawal from the European Union, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (14) the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which Otis and its businesses operate, including changes as a result of the new U.S. Administration; (15) the ability of Otis to retain and hire key personnel; (16) the scope, nature, impact or timing of acquisition and divestiture activity, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (17) the timing of closing, if any, of the Tender Offer and the expected benefits of the Tender Offer and separation and distribution and timing thereof; (18) the determination by the Internal Revenue Service and other tax authorities that the distribution or certain related transactions should be treated as taxable transactions; (19) risks associated with indebtedness incurred as a result of financing transactions undertaken in connection with the separation; (20) the risk that dis-synergy costs, costs of restructuring transactions and other costs incurred in connection with the separation will exceed Otis’ estimates; and (21) the impact of the separation on Otis’ businesses and Otis’ resources, systems, procedures and controls, diversion of management’s attention and the impact on relationships with customers, suppliers, employees and other business counterparties. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary from those stated in forward-looking statements, see Otis’ registration statements on Form 10 and Form S-3 and the reports of Otis on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Otis assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
© 2021 OTIS WORLDWIDE CORPORATION. 2
Overview of Otis
© 2021 OTIS WORLDWIDE CORPORATION.
13
Sales Mix
© 2021 OTIS WORLDWIDE CORPORATION.
Global highlights
• Top 5 participants
represent ~70% of the
industry
• Highly regulated, life-
safety business
• Strong fundamentals
supported by global
growth trends
• Enables urbanization
Overview of Otis
An attractive, global industry…
Otis
New
Equipment
46%Service
54%
Source: 2020 estimates based on Otis internal analysis and public company disclosures.
~$76B industry
4
E&E Peers
© 2021 OTIS WORLDWIDE CORPORATION.
…and recurring business model
Attractivebusinessmodel
Expandinginstalled base
Steady newequipment bookings
Overview of Otis
Global new equipment bookings (million units)
Global installed base(million units)
Source: Otis internal analysis and public company disclosures.
1 Refers to conversion of new equipment units to maintenance contracts.
12
15
19
~23
2012 2016 2020 2024E
0.9 0.9 1.0 ~1.1
2012 2016 2020 2024E
Service profit ~2.5x new equipment profit over product lifecycle
MAINTENANCE
& REPAIRMODERNIZATION
NEW
EQUIPMENT
5
Sales by segment Adj. operating profit1
by segment
© 2021 OTIS WORLDWIDE CORPORATION.
Leading across all key metrics
Overview of Otis
Otis: An iconic industry leader
New
Equipment
17%
Service
83%
ENABLING A TALLER, FASTER, SMARTER WORLD
2020 results
1 See appendix for additional information regarding these non-GAAP financial measures.
New
Equipment
42%Service
58%
NEmargin
6.5%
Service margin22.5%
Sales
$12.8B
Portfolio
~2.1M units
Adj. operating profit margin1
15.0%
6
Business segments strategic update
© 2021 OTIS WORLDWIDE CORPORATION.
27
New Equipment strategies to drive growth
© 2021 OTIS WORLDWIDE CORPORATION. 8
1
2
3Increase sales coverage &
improve effectiveness
Expand product offering
Introduce innovative new solutions
© 2021 OTIS WORLDWIDE CORPORATION.
Commitment to innovation…introducing new solutions
Continued investments for growth
Business segments strategic update: New Equipment
2015 2020
~1.2% of sales
~0.4% of sales
4x increase in U.S. patents granted in 2020 vs. 2015
R&D
Digital strategic investments
Up ~60%Gen360™
Connected, compact
elevator
Otis ONE™
Cloud data analytics
for elevator & escalators
9
Compass®360, Optisense & AI
Optimized people flow enhanced with
real-time tracking & Artificial Intelligence
Health Solutions
Antimicrobial, air purification
& UV sanitization
Touchless Solutions
Voice, gesture, phone apps
Application Program Interface (APIs)
Enabling building, robot & other
integrations for elevator & escalators
© 2021 OTIS WORLDWIDE CORPORATION.
Expand product offering
Launched an entry-level, low-rise elevator… …and introduced Otis’ next generation platform
Business segments strategic update: New Equipment
5 & 6 passenger
capacity
0.7 m/s
speed
1 Gen2 Nova machine roomless (MRL) elevators manufactured in the India factory
Addressing ~5% global unit opportunity
Launched in India & SE
Asia… expanding to the
Middle East & Africa
10
✓ New, groundbreaking control
architecture
✓ Compact design and footprint
✓ In-cab maintenance solution
✓ IoT-enabled with on-line tools
and communication
✓ Connected passenger
experience
Piloting in Europe…formal launch in 2021
Gen 360 platform
Gen2
Base
Gen2
Prime1
Product cost
>30%
~60%
~85%
~100%
2018 2020 2022E
% units on NE CRM
+ ~2x
2019 2020
© 2021 OTIS WORLDWIDE CORPORATION. 11
Digital initiatives for sales effectivenessCRM deployment improving salesforce efficiency…
…and digital channel increasing reach
Business segments strategic update: New Equipment
Select
Quote
Otis Create
Digital configuration
Configure
Hey Otis
Real-time chat feature
Common CRM
Manage customer interactions
# of Hey Otis sales
inquiries in India
© 2021 OTIS WORLDWIDE CORPORATION.
Increase sales coverage1
Business segments strategic update: New Equipment
A
B
C
D
E
F
Country / Region
2019sales coverage
Sales coverage expansion…
1 Sales coverage = units bid / segment units
2 Based on Otis internal estimates
2020 sales coverageexpansion
2012 2019 2020
+ 60
bps
Global New Equipment share2
(units)
+ 200
bps
Targeted additions of direct sales colleagues & channel partners
12
~17%
Global
units:~0.9M ~1.0M ~1.0M
…driving incremental share gain
Servicestrategies to drive profitable growth
© 2021 OTIS WORLDWIDE CORPORATION. 13
2
1
3
4
Harness IoT
Leverage technology
Enhance subscription services
Capitalize on modernization
© 2021 OTIS WORLDWIDE CORPORATION.
Largest maintenance & repair portfolio
Supports profitable recurring sales
Business segments strategic update: Service
Otis maintenance portfolio
Americas
EMEA
Asia Pacific
ChinaSales driven by units under
maintenance>$5B
Maintenance contract retention rate…up 1 pt. versus 2019~94%
Service adjusted operating profit1
margin…100 bps expansion22.5%
New Equipment unit conversion
rate to service portfolio… ~90% ex China & Russia… China up 1 pt.
~60%~ 2.1M Units
>25% larger than closest peer
(units, 2020)
1 See appendix for additional information regarding these non-GAAP financial measures.
14
© 2021 OTIS WORLDWIDE CORPORATION.
Leverage technology to drive productivity & growth
TUNE - Accelerate diagnostics UPGRADE - Facilitate incremental repair sales
Business segments strategic update: Service
>450K analyses in 2020
up 18x vs. 2018
Apps increase customer satisfaction, reduce time per visit and provide incremental sales and margin expansion opportunities
OTIS SUITE OF APPS
Support Tune Yammer Parts Closeout Virtual
Expert
ServiceUpgrade Survey
15
Compass Otis ONE
view
2 new apps launched in 2020
>$110M sold via app in 2020
up >2.5x vs. 2018
© 2021 OTIS WORLDWIDE CORPORATION. 16
Capitalize on modernization opportunity
Aging global installed base
New products
Sales tools & support
Sales force expansion
Reduce customer
energy usage
Business segments strategic update: Service
~6M of units > 20 years old
More than 30 years
21 to 30 years
10 to 20 years
Less than 10 years
Source (all): Otis internal estimate.
(~19M units)
Modernization providing recapture opportunity and improving retention of existing maintenance base
eView
E View Service
Improve Passenger Experience
& System Communications
Machine Room Less
Tailored value proposition for
existing buildings with
contemporary technology
Geared to gearless
Compass 360ReGen
© 2021 OTIS WORLDWIDE CORPORATION.
Harness IoT 317
© 2021 OTIS WORLDWIDE CORPORATION.
Otis ONE: improving the service experience
Activemonitoring
Cloud-based data analytics
REAL
TIME
Dispatch technician with detailed diagnostics
Remote intervention & maintenance
Elevator determined “healthy” without intervention
Fewer unplanned
outages
Faster response
Increased uptime
Otis expert
REAL
TIME
Transparent Proactive Predictive
Real-time visibility of
entire portfolio
Pre-emptive maintenance
minimizing disruption
Informed repairs &
quicker resolution
18
Harness IoT
© 2021 OTIS WORLDWIDE CORPORATION.
Adding value for customers and driving subscription services
Improved retention,
conversion &
recaptures
Multimedia add-ons,
including digitalization
of phone lines
Expanded
subscription sales
+ Multimedia packages
Features & subscription tiers
Pric
e
19
E View Service
Improve Passenger Experience
& System Communications
Machine Room Less
Tailored value proposition for
existing buildings with
contemporary technology
Harness IoT
Technician dispatched
during pilot phase
© 2021 OTIS WORLDWIDE CORPORATION.
Productivity benefitsSignificant opportunity to improve productivity
2020 Medium
term
Fewer avoidable
service requests
~14%
Service
New
Equipment
83% of Otis adjusted operating profit1 comes
from the Service segment…
Material
Labor
…and ~70% of Service cost structure is from labor
China guided maintenance
France inbound service requests
Reduction in
service hours
~10 – 15%
20
1 See appendix for additional information regarding these non-GAAP financial measures.
Harness IoT
© 2021 OTIS WORLDWIDE CORPORATION.
Connectivity case studies
REMin Japan
eViewin Europe
~5-10%
~97%
~70%
retention rate1
reduction in number of visits
with remote inspection
incremental sales per unit ~20%
~99%
~96% conversion rate3
incremental sales per unit
~50% of maintenance units are connected
1 2020 total Japan units2 2020 Spain units with eView3 2020 Europe units with eView
~90K eView units deployed
retention rate2
21
Harness IoT
© 2021 OTIS WORLDWIDE CORPORATION.
Otis ONE deployment progressTARGETED DEPLOYMENT STRATEGY BUILDING MOMENTUM
2020
Americas
~350K portfolio units
~20% connected
EMEA
~1.1M portfolio units
~30% connected
China
~230K portfolio units
~15% connected
Asia Pacific
~380K portfolio units
~25% connected
~25% of global units connected at the end of 2020…
plan to accelerate connectivity to 60%+ of units over the medium term
22
Harness IoT
Financial overview
© 2021 OTIS WORLDWIDE CORPORATION.
423
1.8 1.9 1.9
2.18 to 2.19
14.3% 14.3%15.0%
~15.3%
2018 2019 2020 2021E
© 2021 OTIS WORLDWIDE CORPORATION. 24
Financial performance2020 Highlights
~60 bps2 of New Equipment share gain
New Equipment backlog up 2% at constant currency1
Maintenance units up 2%...growth in all major regions
Adjusted operating profit1 growth despite difficult
environment…up $47M with 70 bps of margin expansion
Adjusted diluted EPS1 up 12.5% to $2.52…reduced the adjusted effective tax rate1 by 370 bps versus prior year
Generated $1.3B in free cash flow1…conversion of 143%
Disciplined capital allocation…completed ~$350M of debt reduction, initiated dividend payout ratio3 of ~40% and made targeted acquisitions
Financial Overview
12.9 13.1 12.8
~14.3
3.4% 4.7%
-2.1%
8.5 to
9.0%
2018 2019 2020 2021E
1 See appendix for additional information regarding these non-GAAP financial measures.
2 Based on Otis internal estimates.
3 As a percentage of GAAP net income.
Sales
Adjusted margin1
Inflection & Acceleration
Adjusted operating
profit1
($ billions)
Organic1
sales growth
© 2021 OTIS WORLDWIDE CORPORATION.
Optimize manufacturing
Financial Overview
~$3.1B in manufacturing spend…$2.3B of material
Fragmented supplier base
…and driving product cost down
25
Base Platform
Reducing material spend…
Local
material
suppliersGlobal
material
suppliers
Labor &
overhead
0.7%1.7%
3.1%
2018 2019 2020
Material productivity
2018 2020 2021E
Korea low-rise product cost
(indexed)
10%5%
Continued focus on material productivity initiatives
© 2021 OTIS WORLDWIDE CORPORATION.
Drive serviceproductivity
Financial Overview
Case study: Planned route optimization model in outer London
26
Base Platform
Several initiatives to drive down Service labor cost…
Before
Deploy Otis ONE
Optimize service routes
Enhance digital tools
Specialize mechanic activity
Material
Labor
…with demonstrated benefits
After
~40%
~11%
15 pt.
increase in units per
mechanic route
reduction in yearly
distance traveled
increase in time spent
on maintenance
100 98
92
2018 2019 2020
(hours/unit, indexed)
LondonLondon
© 2021 OTIS WORLDWIDE CORPORATION.
Rationalize SG&A
1.71.7
1.81.7
13.4% 13.4% 13.6% 13.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
1
2017 2018 2019 2020 Medium
term
Adjusted
SG&A
expense1
($ billions)
Adjusted
SG&A %
of sales1
Financial Overview
Down
~ 100-150 bps
• Leveraging scale & aligning global processes
• Increasing usage of shared service center
• Established sales center of excellence
Structural
• Driving process and analytics efficiencies
• Managing ~65% of sales on a common ERP…targeting ~70% in 2021
ERP & digital
• Continuing to drive down incremental cost
• Optimizing IT infrastructure
Standalone costs
1 See appendix for additional information regarding these non-GAAP financial measures.
27
Reduced adjusted SG&A1 $38M versus prior year
28.5 – 29%~25 – 28%
2021E Medium term
outlook
• Holistic review of Otis
operating model
• Evaluate financing
structure
• Capture credits and
incentives globally
• Simplify legal entity
structure
Financial Overview
Effective tax rate evolution
21%
34.1%
30.4%
2019 2020
U.S. statutory
U.S. state / other
Tax rates > U.S.
Withholding taxes
GILTI / BEAT
Strong progress throughout 2020… …continuing to target reduction over the medium term
28© 2021 OTIS WORLDWIDE CORPORATION.
1 See appendix for additional information regarding these non-GAAP financial measures.
Adjusted tax rate1
© 2021 OTIS WORLDWIDE CORPORATION.
Strong cash generation &capital deployment
Capital allocation
Completed $500M of debt repayment
Healthy dividend…raised quarterly dividend
by 20% to $0.24 in 1Q21
Targeted M&A…announced tender offer for
remaining interest in Zardoya Otis
Completed ~$725M in share repurchases in
20213
Financial Overview
1.1% 1.3% 1.1% 1.4%
3.0%
2017 2018 2019 2020
Multi-industry average2
110 - 120%
conversion119%
conversion
2021 free cash flow outlook1 $1.45 to 1.5 billion; ~120% conversion
2.8% 2.6% 2.7%2.1%
2017 2018 2019 2020
Capex % of sales
Working capital1
% of sales
…and efficient adjusted working capital1
1 See appendix for additional information regarding these non-GAAP financial measures.
2 Select industrial companies. Source: Factset.
3 Share repurchases temporarily suspended due to Zardoya Otis transaction.
Modest capital needs…
29
© 2021 OTIS WORLDWIDE CORPORATION.
Path to value creation1
Sales
• Invest in innovation
• Gain New Equipment share
• Accelerate portfolio growth
Cash & Capital Deployment
• Optimize effective tax rate
• Lower net interest costs
• Accelerate share repurchases
• Raise dividends
Operating Profit
• Drop through from volume
• Optimize supply chain
• Drive service productivity
• Rationalize standalone costs
Financial Overview
Sustainable growth Expand operating margin Return cash to shareholders
1 Based on Otis internal estimates and expectations.
30
ESG program
© 2021 OTIS WORLDWIDE CORPORATION. 31
5
32© 2021 OTIS WORLDWIDE CORPORATION.
We give people freedom to connect and thrive in a taller,
faster, smarter world
The Otis Absolutes
© 2021 OTIS WORLDWIDE CORPORATION. 33
Our collective commitment & vision in motionINTEGRATING OUR STRATEGIC PILLARS AND OUR ESG COMMITMENTS TO DRIVE SHAREHOLDER VALUE
ADVANCE
DIGITALIZATION
CONNECT & THRIVE
FOCUS & EMPOWER OUR
ORGANIZATION
ACCELERATE SERVICE
PORTFOLIO GROWTH
SUSTAIN NEW
EQUIPMENT GROWTH
GOVERNANCE &
ACCOUNTABILITY
PEOPLE & COMMUNITIES
HEALTH &SAFETY
ENVIRONMENT & IMPACT
ESG Program
© 2021 OTIS WORLDWIDE CORPORATION. 34
Alignment of our commitmentsConducted a robust materiality assessment to determine topics
most impactful to Otis & our stakeholders
Aligning with UN Sustainable Development Goals (SDGs)
▪ Public health, safety &
accessibility
▪ Product design &
sustainable innovation
▪ Community engagement
▪ Workforce well-being, health & safety
▪ Product quality & reliability
▪ Emissions, energy & climate change
▪ Diversity, equity & inclusion
▪ Regulatory, compliance & anti-corruption
▪ Ethics & integrity
▪ Sustainable supply chain
▪ Cybersecurity, data privacy &
intellectual property
▪ Waste ▪ Colleague development,
engagement & retention
Business impact
Medium High
Imp
ort
an
ce
to
exte
rna
l st
ake
ho
lde
rs
Signatory of the
UN Global Compact
▪ HEALTH & SAFETY
▪ ENVIRONMENT & IMPACT
▪ PEOPLE & COMMUNITIES
▪ GOVERNANCE & ACCOUNTABILITY
Low
Hig
hLo
wM
ed
ium
ESG Program
RIDING PUBLICCOLLEAGUES
Strong progress on safety KPIs
© 2021 OTIS WORLDWIDE CORPORATION. 35
Health & safety
2015 2020
13%
2015 2020
35%
Total recordable incident rate (TRIR)
Lost-timeincident rate (LTIR)
Empowered all colleagues with ‘Stop Work’ authority
Initiated annual Global Safety Stand-Down Day
Launched digital technologies to create a safer work environment
Expanded mental health & well-being benefits, policies & practices
Introduced health & safety solutions including touchless technologies
Meet & exceed strict elevator safety code standards
Commissioned an elevator airflow study with Purdue University
Elevator Airflow study
eCall touchless solution
Purification / UV products
ESG Program
© 2021 OTIS WORLDWIDE CORPORATION. 36
Environmental initiative highlights
OPERATIONS RECENT PROGRESSPRODUCTS
ReGen® systemreduces electricity consumption up to 75% in new and existing buildings
Compass 360 Intelligent dispatching & automated standby mode optimizes energy usage
Gen2 Switch elevatoroperates on batteries &uses less power than most household appliances
Florence, SC factorysolar field produces more than 25% of the facility’s annual power requirements
Industry 4.0 Haining,China factoryintelligent manufacturing, advanced automation & more efficient capabilities
Bengaluru, India factoryreceived India Green Building Council (IGBC) Gold rating
> 30%
> 40%
99+%
reduction in factory GHG
emissions since 2015
reduction in factory
water usage since 2015
of factory generated
waste products recycled
Successfully reducing our environmental footprint & investing in a more sustainable future
ESG Program
© 2021 OTIS WORLDWIDE CORPORATION. 37
Safety & sustainability embedded in innovation…
GEN 360
Mechanic & passenger safety reimagined
In-cab maintenance solution
Electronic architecture &
safety system…reducing entrapments
ISO 25745 “A” rating
Compact footprint
~75% reduction in standby power demand
compared to Gen2
OTIS ONE
Reducing fleet emissions
Pre-emptive maintenance
Fewer unnecessary visits
Innovation Development Launch
RESEARCH & DEVELOPMENT
Intelligent
design
Reliable & safe
operation
Faster
construction
Personalized
experience
Minimizing energy
use & waste
ESG Program
© 2021 OTIS WORLDWIDE CORPORATION. 38
• Increasing urbanization
• Aging population
• Accelerating digitalization
…valued by customers &supported by macro trends
THE CONCOURSE
CHASE CENTER
Singapore
San Francisco, California
Global trendsOtis awards
THE LINK
La Defense, France
REPUBLIC PLAZA
Singapore
Market forces
• Aging elevator installed base
• Focus on environmental impact
• Sustainability & stimulus funding
ESG Program
© 2021 OTIS WORLDWIDE CORPORATION. 39
Holistic approach to sustainability
GOALS
50%
100%
100%
factory eligibility for zero-waste-
to-landfill certification by 2025
of factories certified ISO 14001
by 2025…accomplished in 2021
reduction of Scope 1 & 2 GHG
emissions by 20301
1 vs. 2019 baseline
FACTORIES
Employ
best practices
FLEET
Electrify & optimize vehicles & routes
PRODUCTS
Develop safe & sustainable products
for our customers
REAL ESTATE
Rationalize
our footprint
REDUCING OUR IMPACT
ESG Program
© 2021 OTIS WORLDWIDE CORPORATION. 40
Fostering our Otis culture…
DIVERSITY, EQUITY & INCLUSION
DEVELOPMENT, ENGAGEMENT & RETENTION
34%
26%
> 20%
of our executives are
ethnically/racially diverse1
U.S. supplier spend awarded
annually to diverse suppliers
~4 pt
~5,500
4 pts
reduction in voluntary attrition over
the last 5 years
degrees earned in 60+ countries
through Employee Scholar Progam2
of our executives
are women
above benchmark for culture in
engagement survey results
Won 2021 Corporate Citizenship Award
from The Conference Board’s Committee
for Economic Development
Joined P4P, pledging to
reach gender parity in
executive ranks by 2030
Awarded Human Rights
Campaign’s Best Places to
Work for LGBTQ+ Equality
Launched Our
Commitment to Change
Metrics as of 2020.
1 inclusive of U.S. based executives only; 2 Since inception
ESG Program
© 2021 OTIS WORLDWIDE CORPORATION. 41
…and strengthening our communities
MADE TO MOVE COMMUNITIES™ VOLUNTEERISMCOMMUNITY GIVING
Theodora
Foundation
Spain
FIRST Robotics
USA
Otis CSR program to advance youth STEM education and provide inclusive mobility solutions
for communities in need
Received the Caring Company Award from the Hong Kong Council of Social Services for 15th
consecutive year
Participants in inaugural year
ESG Program
© 2021 OTIS WORLDWIDE CORPORATION.
Governance & accountability
Diverse Board of Directors…5 / 9 are women,
racially/ethnically diverse or both
Jeffrey H.Black
Kathy HopinkahHannan
Shailesh G. Jejurikar
Christopher J. Kearney
Judith F.Marks
Harold W. McGraw
Margaret M. Preston
ShelleyStewart Jr.
John H.Walker
42
Nominations & Governance committee
ESG governance model
Integrated, cross-functional approach
Frequent discussion around objectives & longer-term initiatives
Alignment with Otis culture, values and business strategies & objectives
Nominations &Governance Committee
CEO
ESG Council
ESG Working Group
Areas of oversight include,
but are not limited to:
• Employee health & safety• Diversity, equity & inclusion• Corporate governance• Sustainability• Community giving• Supply chain• Ethics & compliance• Investor Relations
ESG Program
Prioritize the health & safety
of our colleagues & the
riding public
© 2021 OTIS WORLDWIDE CORPORATION.
Connect & thrive in a more sustainable& hopeful world
43
Reduce the environmental
impact of our products,
services and operations
Continue to uphold the
highest standards of ethics &
integrity
Foster a diverse, equitable &
inclusive culture in the
workplace & our
communities
Health & safety Environment & impact People & communities Governance & accountability
ESG Program
Q3 2021 Results &2021 Outlook
© 2021 OTIS WORLDWIDE CORPORATION.
644
© 2021 OTIS WORLDWIDE CORPORATION. 45
HighlightsStrong performance…continued execution on long-
term strategy
• Q3 New Equipment share gain, up ~1.5 pts1…up
~1.5 pts1 year-to-date
• Maintenance portfolio up 3%
• Organic2 sales growth in both segments
• New Equipment growth in all regions
• Service growth for third consecutive quarter
• Margin expansion in both segments
Creating value for shareholders
• Completed $725M in share repurchases year-to-date
• Announced tender offer for remaining interest in
Zardoya Otis
Driving ESG initiatives
• All Otis factories are now ISO 14001 certified1 Based on Otis internal estimates
2 See appendix for additional information regarding these non-GAAP financial measures.
Hong Kong International
Airport
Q3 orders
One Commerce Square
Philadelphia, Pennsylvania
Repeat Gen3 orders
Northeast China
Q3 2021 Results & 2021 Outlook
© 2021 OTIS WORLDWIDE CORPORATION. 46
Q3 2021 update
• New Equipment orders up 3.8% at constant currency1…up 10.3% on a rolling 12-
month basis
• New Equipment backlog up 4%...up 1% at constant currency1
• Organic1 sales up 8.1%...New Equipment up 14.1%, Service up 3.6%
• Adjusted operating profit margin1 expanded 20 bps
• Free cash flow1 of $324M…$1.4B year-to-date; 141% conversion1 of GAAP net
income
Q3 2021
Results
Revised 2021
Outlook
• Improved sales, profit, EPS and free cash flow outlook
• Net sales of ~$14.3B, up 11.8 to 12.3%; organic up 8.5 to 9.0%
• Adjusted operating profit1 of $2.18 to $2.19B, up $260 to $270M; constant
currency1 up $195 to $205M
• Adjusted diluted EPS1 of ~$2.95, up ~17%
• Free cash flow1 of $1.5 to $1.55B…~125% conversion1 of GAAP net income
1 See appendix for additional information regarding these non-GAAP financial measures
Q3 2021 Results & 2021 Outlook
© 2021 OTIS WORLDWIDE CORPORATION. 47
Q3 2021 results
Sales Diluted earnings per shareOperating profit
3,268
3,620
Q3 2020 Q3 2021
($ millions, except per share amounts)
503
566
15.4%15.6%
Q3 2020 Q3 2021
Q3 adjusted operating profit1 up
$63M…up $52M at constant currency1
Q3 adjusted operating profit margin1
expanded 20 bps, including ~50 bps of
segment mix headwind
1 See appendix for additional information regarding these non-GAAP financial measures
Adjusted1
Adjusted
margin1
Organic1 8.1%
FX 2.5%
Net acquisitions/other 0.2%
Total net sales 10.8%
$0.69
$0.77
Q3 2020 Q3 2021
Adjusted1
Adjusted EPS1 drivers
Operating profit $0.11
Net interest / other $0.01
Tax ($0.04)
GAAP 454 542 GAAP $0.61 $0.77
Q3 2021 Results & 2021 Outlook
$503M
$566M
$25M
$24M$3M
$11M
Q3 2020 adjusted
operating profit
New
Equipment
Service Corporate /
Other
FX Q3 2021 adjusted
operating profit
© 2021 OTIS WORLDWIDE CORPORATION. 48
Q3 2021 adjusted operating profit1 drivers
1 See additional information regarding these non-GAAP financial measures.
Volume
Installation
productivity
Commodities
Volume
Pricing and mix
Prior year cost
containment actions
1 1
20 basis points of adjusted operating profit margin1 expansion
+$52M at constant currency1
Actual currency + $33M + $27M $3M + $63M
Q3 2021 Results & 2021 Outlook
© 2021 OTIS WORLDWIDE CORPORATION. 49
2021 financial outlook
1 See appendix for additional information regarding these non-GAAP financial measures. 2 Share repurchases suspended due to Zardoya Otis transaction.
Otis up 7.5 to 8.0%
New Equipment up 12.0 to 13.0%
Service up 4.0 to 4.5%
Organic1 sales
Adjusted operating profit1
Free cash flow1 & capital deployment
Adjusted net income & EPS1
Prior outlook
Constant currency1 up $170 to $190M
Actual currency up $240 to $260M
Adjusted net income1 $1,250 to $1,265M
Adjusted EPS1 $2.89 to $2.93, up 15 to 16%
Free cash flow1 $1.45 to $1.50B
Quarterly dividend per share $0.24
Share repurchases ~$750M
Improving 2021 outlook
Otis up 8.5 to 9.0%
New Equipment up 15.0 to 15.5%
Service up ~4.0%
Current outlook
Constant currency1 up $195 to $205M
Actual currency up $260 to 270M
Adjusted net income1 ~$1,275M
Adjusted EPS1 ~$2.95, up 17%
Free cash flow1 ~$1.5 to $1.55B
Quarterly dividend per share $0.24
Share repurchases ~$725M2
Q3 2021 Results & 2021 Outlook
© 2021 OTIS WORLDWIDE CORPORATION. 50
2021 organic1 sales outlook
Prior outlook (July 26, 2021) Updated outlook
New Equipment up 12.0 to 13.0% up 15.0 to 15.5%
Americas up low teens up mid teens
EMEA up mid to high single up high single
Asia up low teens up high teens
Service up 4.0 to 4.5% up ~4.0%
Maintenance & repair up 3.5 to 4.5% up ~4.0%
Modernization up mid single up ~4.0%
Otis up 7.5 to 8.0% up 8.5 to 9.0%
1 See appendix for additional information regarding these non-GAAP financial measures.
Outlook drivers
• Q3 New Equipment backlog up 4%, 1% at constant currency1... accelerating conversion
• New Equipment end market growth in all regions
• Accelerated maintenance portfolio growth…up 3% in Q3
• Continued recovery on discretionary repair
• Slower than expected momentum on modernization
Q3 2021 Results & 2021 Outlook
$1,919M
$110 – 115M
$85 – 90M
~$65M$0M
2020 adjusted
operating profit
New Equipment Service Corporate/other FX 2021 adjusted
operating
profit outlook
© 2021 OTIS WORLDWIDE CORPORATION. 51
2021 adjusted operating profit1 drivers
up $195 to 205M at constant currency1
1 See appendix for additional information regarding these non-GAAP financial measures.
1
Volume
Material & installation
productivity
Price & mix
Commodities
$2,180 – 2,190M
1
Volume
Productivity
Pricing
Prior year cost
containment actions
Actual currency + $130 – 135M + $130 – 135M $0M
EUR @ 1.18
CNY @ 6.45
+ $260 – 270M
~30 basis points of adjusted operating profit margin1 expansion
vs. prior outlook
(at the midpoint)+ $12.5M ($5M) + $12.5M + $15M($5M)
Q3 2021 Results & 2021 Outlook
© 2021 OTIS WORLDWIDE CORPORATION.52
© 2021 OTIS WORLDWIDE CORPORATION. 53
Appendix
Use and Definitions of Non-GAAP Financial MeasuresOtis Worldwide Corporation (“Otis”) reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information
determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes
for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors
to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures (referenced in this press release) to the
corresponding amounts prepared in accordance with GAAP appears in the attached tables. These tables provide additional information as to the items and amounts that have been excluded from the adjusted
measures.
Organic sales, adjusted selling, general and administrative (“SG&A”) expense, earnings before interest taxes and depreciation (“EBITDA”), adjusted EBITDA, adjusted operating profit, adjusted net income, adjusted
diluted earnings per share (“EPS”), adjusted effective tax rate and free cash flow are non-GAAP financial measures.
Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant
items of a non-recurring and/or nonoperational nature (“other significant items”). Management believes organic sales is a useful measure in providing period-to-period comparisons of the results of the Company’s
ongoing operational performance.
Adjusted SG&A expense represents SG&A expense (a GAAP measure), excluding restructuring costs, other significant items and allocated costs for certain functions and services previously performed by United
Technologies Corporation (“UTC”) prior to our separation (“UTC allocated costs”) and including solely for fiscal years prior to 2020 estimated standalone public company costs, as though Otis’ operations had been
conducted independently from UTC (“standalone costs”). Standalone costs for fiscal years prior to 2020 are based on quarterly estimates determined during Otis’ annual planning process for the 2020 fiscal year.
Recurring standalone costs for 2021 and 2020 are not adjusted.
Adjusted operating profit represents income from continuing operations (a GAAP measure), excluding restructuring costs, other non-recurring significant items, UTC allocated costs and including solely for fiscal years prior
to 2020 estimated standalone public company costs.
Adjusted net income represents net income from continuing operations (a GAAP measure), excluding restructuring costs and other non-recurring significant items and UTC allocated costs and including solely for fiscal
years prior to 2020 estimated standalone public company costs, estimated adjustments to non-service pension expense, net interest expense and income tax expense as if Otis was a standalone public company
(“standalone operating income adjustments”). Adjusted EPS represents diluted earnings per share from continuing operations (a GAAP measure), adjusted for the per share impact of restructuring, other significant items
and solely for fiscal years prior to 2020 estimated standalone operating income adjustments.
The adjusted effective tax rate represents the effective tax rate (a GAAP measure) adjusted for the tax impact of restructuring costs, non-recurring significant items and solely for fiscal years prior to 2020 the tax impact of
the additional adjustments (estimated standalone public company costs, interest expense and non-service pension expense).
EBITDA represents net income from operations (a GAAP measure), adjusted for noncontrolling interests, income tax expense, net interest expense, non-service pension expense and depreciation and amortization.
Adjusted EBITDA represents EBITDA, as calculated above, adjusted for the impact of restructuring, other significant items and UTC allocated costs, including solely for fiscal years prior to 2020, estimated standalone public
company costs. Management believes that adjusted SG&A, EBITDA, adjusted EBITDA, adjusted operating profit, adjusted net income, adjusted EPS and the adjusted effective tax rate are useful measures in providing
period-to-period comparisons of the results of the Company’s ongoing operational performance and to the extent applicable as if it had been a standalone public company for fiscal years prior to 2020.
Additionally, GAAP financial results include the impact of changes in foreign currency exchange rates ("AFX"). We use the non-GAAP measure “at constant currency” or “CFX” to show changes in our financial results
without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, income statement results are translated in U.S. dollars at the average exchange rate for the period presented. Management believes that
this non-GAAP measure is useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.
Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an
additional basis for assessing Otis’ ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders.
When we provide our expectations for organic sales, adjusted operating profit, adjusted net income, adjusted effective tax rate, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and the corresponding GAAP measures (expected diluted EPS from continuing operations, operating profit, the effective tax rate, net sales and expected cash flow
from operations) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future
period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural
changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
© 2021 OTIS WORLDWIDE CORPORATION. 54
2019 Pro forma standalone financials reconciliation
Appendix
(a) Reflects costs for certain functions and services performed by UTC organizations that are allocated to Otis for purposes of carve-out financial statements.
(b) Adjustments have been made to 2019 to represent estimated standalone public company costs, as though Otis' operations had been conducted independently from UTC. 2020 costs are reflected as a part of GAAP
operating profit and are not adjusted.
(c) Non-service pension expenses included in GAAP net income attributable to Otis includes amounts associated with Otis' participation in UTC retained pension plans. The amounts related to these plans are removed
from Otis' results for the 2019 year, as though Otis' operations have been conducted independently from UTC.
(d) 2019 Net Interest reflects adjustments as though Otis' February 2020 debt issuance took place in 2019.
(e) The adjusted effective tax rate represents the effective tax rate (a GAAP measure)adjusted for the tax impact of restructuring costs, other significant items and the tax impact of the additional adjustments
(standalone costs, additional interest expense and non-service pension expenses)
($millions)
© 2021 OTIS WORLDWIDE CORPORATION. 55
2020 GAAP to adjusted financials reconciliation
Appendix
(a) Reflects costs for certain functions and services performed by UTC organizations that were allocated to Otis for purposes of carve-out financial statements.
(b) Non-service pension expense included in GAAP net income attributable to Otis pre-Separation includes amounts associated with Otis' participation in UTC retained pension plans.
(c) The adjusted effective tax rate represents the effective tax rate (a GAAP measure)adjusted for the tax impact of restructuring costs, other significant non-recurring items
($millions)
© 2021 OTIS WORLDWIDE CORPORATION. 56
2021 GAAP to adjusted financials reconciliationAppendix
(a) Reflects costs for certain functions and services performed by UTC organizations that were allocated to Otis for purposes of carve-out financial statements.
(b) Non-service pension expense included in GAAP net income attributable to Otis pre-Separation includes amounts associated with Otis' participation in UTC retained pension plans.
(c) The adjusted effective tax rate represents the effective tax rate (a GAAP measure)adjusted for the tax impact of restructuring costs, other significant non-recurring items and includes rounding.
($millions) Otis New Equipment Service Corporate/other
Sales 1Q20 2Q20 3Q20 1Q21 2Q21 3Q21 1Q20 2Q20 3Q’20 1Q21 2Q21 3Q21 1Q20 2Q20 3Q20 1Q21 2Q21 3Q21 1Q20 2Q20 3Q20 1Q21 2Q21 3Q21
Net sales 2,966 3,029 3,268 3,408 3,701 3,620 1,123 1,294 1,423 1,458 1,727 1,681 1,843 1,735 1,845 1,950 1,974 1,939 0 0 0 0 0 0
Income
Net income attributable to Otis 165 224 266 308 326 331
Noncontrolling interest in subsidiaries’ 37 41 44 44 53 48
Income tax expense 125 109 103 123 153 128
Net interest expense 5 41 39 32 27 33
Non-service pension benefit (expense) (3) 1 2 2 2 2
GAAP operating profit 329 416 454 509 561 542 64 79 95 104 147 131 400 381 409 430 441 444 (135) (44) (50) (25) (27) (33)
Restructuring 6 20 20 15 11 9 1 12 7 5 8 4 5 8 13 10 3 5 0 0 0 0 0 0
One-time separation costs 32 21 29 9 0 15 0 0 0 0 0 0 0 0 0 0 0 0 32 21 29 9 0 15
Fixed asset impairment 67 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 67 0 0 0 0 0
UTC allocated corporate expenses (a) 16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16 0 0 0 0 0
Adjusted operating profit 450 457 503 533 572 566 65 91 102 109 155 135 405 389 422 440 444 449 (20) (23) (21) (16) (27) (18)
Adjusted operating profit margin 15.2% 15.1% 15.4% 15.6% 15.5% 15.6% 5.8% 7.0% 7.2% 7.5% 9.0% 8.0% 22.0% 22.4% 22.9% 22.6% 22.5% 23.2%
Non-service pension benefit (expense) (b) 3 (1) (2) (2) (2) (2)
Net interest expense (5) (41) (39) (32) (27) (33)
Adjusted pre-tax profit 448 415 462 499 543 531
Adjusted income tax expense (149) (130) (116) (143) (148) (150)
Adjusted tax rate (c) 33.3% 31.3% 25.1% 28.7% 26.9% 28.2%
Noncontrolling interest (37) (41) (44) (44) (53) (48)
Adjusted net income 262 244 302 312 342 333
© 2021 OTIS WORLDWIDE CORPORATION. 57
Appendix
Organic sales reconciliation
Q3 2021 Total OtisNew
EquipmentService
Maintenance
& RepairModernization
Organic 8.1% 14.1% 3.6% 4.7% (1.2%)
FX 2.5% 3.9% 1.3% 1.2% 1.2%
Net acquisitions / divestitures 0.2% 0.1% 0.2% 0.3% 0.0%
Total net sales growth 10.8% 18.1% 5.1% 6.2% 0.0%
YTD 2021 Total OtisNew
EquipmentService
Maintenance
& RepairModernization
Organic 11.2% 21.1% 4.2% 4.5% 2.7%
FX 4.4% 5.4% 3.6% 3.8% 3.3%
Net acquisitions / divestitures 0.2% 0.2% 0.3% 0.3% 0.1%
Total net sales growth 15.8% 26.7% 8.1% 8.6% 6.1%
Total Otis 2019 2020
Organic 4.7% (2.1%)
FX (3.1%) (0.4%)
Net acquisitions / divestitures & other 0.0% (0.3%)
Total net sales growth 1.6% (2.8%)
© 2021 OTIS WORLDWIDE CORPORATION. 58
Appendix
Adjusted operating profit at constant currency reconciliation($millions) Q3 2020 Q3 2021 Y/Y YTD 2020 YTD 2021 Y/Y
New Equipment
Adjusted operating profit 102 135 33 258 399 141
Impact of foreign exchange (8) (8) (25) (25)
Adjusted operating profit at constant currency 102 127 25 258 374 116
Service
Adjusted operating profit 422 449 27 1,216 1,333 117
Impact of foreign exchange (3) (3) (47) (47)
Adjusted operating profit at constant currency 422 446 24 1,216 1,286 70
Otis Consolidated
Adjusted operating profit 503 566 63 1,410 1,671 261
Impact of foreign exchange (11) (11) (72) (72)
Adjusted operating profit at constant currency 503 555 52 1,410 1,599 189
© 2021 OTIS WORLDWIDE CORPORATION. 59
Appendix
SG&A reconciliation($millions) Q3 2020 Q3 2021 YTD 2020 YTD 2021
SG&A expense 481 479 1,387 1,445
Restructuring (11) (4) (27) (16)
One-time separation costs (18) (2) (69) (14)
UTC allocated corporate expenses (a) 0 0 (16) 0
Other (1) 0 (3) 0
Adjusted SG&A 451 473 1,272 1,415
Adjusted SG&A % of sales 13.8% 13.1% 13.7% 13.2%
(a) Reflects costs for certain functions and services performed by UTC organizations that are allocated to Otis for purposes of carve-out financial statements.
© 2021 OTIS WORLDWIDE CORPORATION. 60
Appendix
Diluted earnings per share reconciliationQ3 2020 Q3 2021 YTD 2020 YTD 2021
GAAP diluted earnings per share $0.61 $0.77 $1.51 $2.23
Impact of non-recurring items on diluted earnings per share $0.08 $0.00 $0.35 $0.05
Adjusted diluted earnings per share $0.69 $0.77 $1.86 $2.28
© 2021 OTIS WORLDWIDE CORPORATION. 61
Appendix
Free cash flow reconciliation($millions) Q3 2020 Q3 2021 YTD 2020 YTD 2021
Operating cash flow1 348 355 1,171 1,473
Capital expenditures (37) (31) (112) (115)
Free cash flow 311 324 1,059 1,358
GAAP net income 266 331 655 965
FCF conversion 117% 98% 162% 141%
1 Operating cash flow excludes dividends paid to noncontrolling interests.
© 2021 OTIS WORLDWIDE CORPORATION. 62
Appendix
Working capital reconciliation($millions) FY 2017 FY 2018 FY 2019 FY 2020
Total current assets 5,512 5,612 5,658 6,493
Total current liabilities (4,933) (5,303) (5,374) (6,673)
Reported working capital 579 309 284 (180)
Cash and cash equivalents (1,554) (1,329) (1,446) (1,782)
Other assets, current (222) (269) (251) (446)
Short-term borrowings 17 27 34 701
Accrued liabilities1 1,524 1,599 1,739 1,977
Adjusted working capital 344 337 360 270
Sales 12,323 12,915 13,118 12,756
Adjusted working capital % of sales 2.8% 2.6% 2.7% 2.1%
1 2017 adjusted for internal calculations of the impact of Financial Accounting Standards Board, Accounting Standards Codification Topic 606: Revenue from Contracts with Customers,
which was effective January 1, 2018.
© 2021 OTIS WORLDWIDE CORPORATION. 63
Appendix
Other reconciliations
($billions)Q3
2020
Q2
2021
Q3
2021
RPO at actual currency 16.9 17.5 17.3
FX/other1 (0.2) (0.5) (0.3)
RPO at constant currency 16.7 17.0 17.0
Remaining performance obligation (RPO)
Growth %Q3
2021
Actual currency 4%
FX (3%)
Constant currency 1%
New Equipment backlog
1 Balances have been updated to reflect the impact of the constant currency calculation and other adjustments to ensure comparability.