Otis Worldwide : Morgan Stanley Captains of Industry Summit

Morgan Stanley

Captains of

Industry Summit

June 1, 2023

© 2023 OTIS WORLDWIDE CORPORATION.

Forward-Looking Statements

Note: 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," "medium-term,""near-term," "confident," "goals" and other words of similar meaning in connection with a discussion of future operating or financial performance. 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 & development spend, credit ratings, net indebtedness and other measures of financial performance or potential future plans, strategies or transactions, or statements that relate to climate change and our intent to achieve certain environmental, social and governance targets or goals, including operational impacts and costs associated therewith, 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 and any changes therein, including financial market conditions, fluctuations in commodity prices and other inflationary pressures, interest rates and foreign currency exchange rates, levels of end market demand in construction, pandemic health issues (including COVID-19 and variants thereof and the ongoing economic recovery therefrom and their effects on, among other things, global supply, demand and distribution), natural disasters, whether as a result of climate change or otherwise, and the financial condition of Otis' customers and suppliers; (2) the effect of changes in political conditions in the U.S. and other countries in which Otis and its businesses operate, including the effects of the ongoing conflict between Russia and Ukraine and increased tensions between the U.S. and China, on general market conditions, commodity costs, global trade policies and related sanctions and export controls, and currency exchange rates in the near term and beyond; (3) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (4) future levels of indebtedness, capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability or costs, credit market conditions, including the recent tightening of credit conditions, and Otis' capital structure; (6) the timing and scope of future repurchases of Otis' common stock ("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; (7) fluctuations in prices and delays and disruption in delivery of materials and services from suppliers, whether as a result of COVID-19, the ongoing conflict between Russia and Ukraine or otherwise; (8) cost reduction or containment actions, restructuring costs and related savings and other consequences thereof; (9) new business and investment opportunities; (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 and labor inflation in the markets in which Otis and its businesses operate globally; (13) 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; (14) the ability of Otis to retain and hire key personnel; (15) the scope, nature, impact or timing of acquisition and divestiture activity, the integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (16) the determination by the Internal Revenue Service and other tax authorities that the distribution or certain related transactions should be treated as taxable transactions in connection with the separation (the "Separation") of Otis and Carrier Global Corporation ("Carrier") from United Technologies Corporation (now known as Raytheon Technologies Corporation ("RTX"); and (17) our obligations and disputes that have or may hereafter arise under the agreements we entered into with RTX and Carrier in connection with the Separation. 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 statement on Form 10 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.

© 2023 OTIS WORLDWIDE CORPORATION.

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An industry driven by recurring Service

Strong urbanization trend

LSD New Equipment market

…Compounding Service base

growth…

~1.0

MSD%

~60%

~55%

~50%

~45%

2000 2010 2020 2030E

Global urban population (%)

0.9 0.9

0.8

China

APAC

EMEA

Americas

2012 2016 2020 2024E

Global NE units (millions)

CAGR 23

19

15 China

12

APAC

EMEA

Americas

2012 2016 2020 2024E

Global installed units (millions)

~1M annual NE units added to ~20M global installed base = ~5% growth

LSD = low single digits; MSD = mid single digits

Source: Otis internal analysis and public company disclosures. Excludes Russia

Source: World Bank.

© 2023 OTIS WORLDWIDE CORPORATION.

3

Otis: Service driven business model

~$13.6B Otis adjusted net sales1

1 See appendix for additional information regarding this non-GAAP financial measure.

© 2023 OTIS WORLDWIDE CORPORATION.

4

Strong geographic diversification

FY22 metrics

Adj. New Equipment sales1		Adj. Service sales1
$5.8B		$7.8B
			China
China	Americas		Asia	Americas
		Pacific
Asia	EMEA		EMEA
Pacific

Adj. operating profit1

$2.1B

Adj. margin1

New 6.6%

Equipment

Service

Adj. margin1

23.5%

1 See appendix for additional information regarding these non-GAAP financial measures. Connected units include units under the warranty period.

Maintenance units

~2.2M

		Asia		~110K
		connected
	EMEA	Pacific
~465K	China
	~145K
connected
				connected
		Americas
Total Otis:
			~80K
~800K
connected			connected

© 2023 OTIS WORLDWIDE CORPORATION.

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