Resideo Technologies : Oppenheimer 19th Annual Industrial Growth Conference

Oppenheimer Industrial Growth Conference

May 7, 2024

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 forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the second quarter 2024 and full year 2024, (2) our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint (3), the amount of our obligations and nature of our contractual restrictions pursuant to, and disputes that have or may hereafter arise under the agreements we entered into with Honeywell in connection with our spin-off, (4) risks related to our recently completed acquisitions including our ability to achieve the targeted amount of annual cost synergies and successfully integrate the acquired operations (including successfully driving category growth in connected offerings), (5) the ability of the conditions to the closing of the Snap One transaction being timely satisfied and the consummation of the transaction, (6) the ability of Snap One and/or Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (7) the ability of Snap One and/or Resideo to achieve the targeted amount of synergies and the related valuation implications described in this presentation, (8) the accretive nature of the transaction to Resideo's non-GAAP EPS in the first full year of ownership and the growth and margin profile of the combined businesses, (9) the ability to accelerate brand strategy as a result of the transaction, (10) the ability to integrate the Snap One business into Resideo and realize the anticipated strategic benefits of the transaction, including the anticipated operational and strategic benefits of the transaction, and (11) the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2023 and other periodic filings we make from time to time with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this presentation and we caution investors not to place undue reliance on any such forward looking statements.

Use of Non-GAAP Measures

This presentation includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G. Management believes

the use of such non- GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting the financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with U.S. GAAP.

We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP at the end of this presentation. A reconciliation of the forecasted range for Adjusted EBITDA and Adjusted Net Income per diluted share for the second quarter of 2024 and for the fiscal period ending December 31, 2024 are not included in this presentation due to the number of variables in the projected range and because we are currently unable to quantify accurately certain amounts that would be required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors.

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Resideo (NYSE: REZI) Snapshot

$6.2B	$590M	$335M
2023 Revenue	2023 Adjusted EBITDA	2023 Free Cash Flow (1)

A Leading Provider of

Products and Services

for the Home

Presence in

150M

Homes

1. Leading
   Security Distribution
   Business

1,000+ 350,0000+

SUPPLIERSPRODUCTS

190+

LOCATIONS

Resideo is a leading global manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, water, and safety and security solutions to homes and businesses. Through our ADI Global Distribution business, we are also a leading wholesale distributor of professionally installed electronic security and life safety products for commercial and residential markets and serve a variety of adjacent categories.

Building on a 130-year heritage, Resideo continues to serve more than 100,000 professionals through leading

Trusted brands

1. Free Cash Flow is Operating Cash Flow ($440M) minus Capital Expenditures ($105M)
   3 Resideo Confidential - © 2024 Resideo Technologies, Inc

distributors, including our ADI Global Distribution business, retailers, and developing channels such as utilities and insurance providers.

Resideo Investment Opportunity

Differentiated Channel		Structural Margin		Growth in
and Pro Relationships		Expansion		Connected Home

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Transformation Focus on Accelerating Profitable Growth

Portfolio Rebalancing

• New product launches
• • Video solutions
  • Connected water
• Value add M&A
• • First Alert
  • Sfty and Teknique
  • ADI adjacent expansion
• Strategic divestitures
• • Genesis Wire
  • ADI geographic consolidation

Cost Reduction Initiatives

• Manufacturing optimization
• • San Diego facility
  • Mexico facility
• Executing structural cost reduction plan
• • Reduction in manufacturing headcount
  • OPEX containment
• Reducing corporate costs
• • Scalability
  • Aligning costs to owners

Operational Improvements

• Growing ADI digital capabilities
• • User experience
  • Mobile capabilities
• Expanding and deepening partnerships
• • Utilities
  • Insurance companies
• Expanding depth of homebuilder relationships
• • Specified into more homes
  • Adding content per home

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Snap One Acquisition Drives Value Creation for Resideo

1. Strategic Acquisition Continues Resideo's Transformation by
   Enhancing ADI Business
   Expanded Product Breadth and Enhanced Capabilities Across
2. Security, Audio Visual and Smart Living Technology Distribution
   Complementary Business Models, Customers and
3. Capabilities Enable Meaningful Cross-Selling and Market Expansion Opportunity
   Attractive Financial Profile is Accretive to Resideo's Revenue
4. Growth, Margins and Adjusted EPS Supported by Significant Identified Synergies

6 © 2024 Resideo Technologies, Inc

Snap One Transaction Overview

Purchase Price

• $10.75 / Snap One share in cash to all shareholders
• $1.4 billion transaction value
• ~7.4x 2023 Snap One Adjusted EBITDA, including projected run-rate synergies1

Synergies

• $75 million projected run-rate annual pre-tax synergies through areas including real estate consolidation and overhead efficiencies exiting year three
• $30 million of one-time costs to achieve synergies, spread evenly over the first three years

Financial Impact

• Accretive to Adjusted EPS in 2025
• Strong pro forma balance sheet with estimated net leverage at year-end 2024 of ~2.2x

Financing

• Sources including fully-committed debt and preferred equity financing, anticipated to be allocated between:

• ~$300 million cash from Resideo balance - $500 million perpetual convertible

sheet	preferred equity investment from Clayton,
- $600 million new secured Term Loan B	Dubilier & Rice LLC ("CD&R")
maturing in 2031, and

CD&R Investment

• Attractive partnership with world class investor brings track record of investing in distribution
• Validates strategic merits of the transaction
• Nate Sleeper, CEO of CD&R, and one other CD&R representative to join Resideo board at closing​

Timing and Closing Considerations

• Unanimously approved by both company Boards
• Hellman & Friedman LLC holds 72% ownership interest in Snap One and has given written consent of the transaction
• Customary regulatory approvals and closing conditions
• Anticipated close in second half of 2024

1 Snap One 2023 Adjusted EBITDA of $117 million plus $75 million of projected run-rate synergies.

7 © 2024 Resideo Technologies, Inc

Overview of Snap One

Vertically-integrated Provider of Smart Living Products and Services to ~20,000 Professional Integrators

3,300	Proprietary	~60%	E-Commerce	$1.1B	2023	$117M	2023
SKUs	Net Sales	Revenue	Adj. EBITDA1

Broad Universe of Smart Living Products

Lighting

Entertainment

Infrastructure

Security

Control

Surveillance

Audio

Networking

Category-defining, technology- enabled specialty distribution platform serving a vast network of professional integrators

Aligned with large and growing technology-driven Smart Living market creating seamless connected experiences in homes and small businesses

Recognized innovator with proprietary products, platforms and services that drive value and stickiness with integrators

Delivering a wide selection of proprietary and third-party entertainment, connectivity, automation and security solutions

1 Refer to Slide 2 for discussion of non-GAAP measures.

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Acquisition Provides Multiple Value Creation Levers

Complementary		Enhanced Integrator		Meaningfully Expands		Significant Identified
Capabilities Expand		Value Proposition		ADI Proprietary		Business and
Differentiated Market				Product Opportunity		Financial Synergies
Position

9 © 2024 Resideo Technologies, Inc

Products & Solutions Segment