Company and Industry Overview * **Company**: Carrier Global Corporation (NYSE:CARR) * **Industry**: HVAC, Climate Solutions, Energy Efficiency Key Points Performance and Financials * **Q2 2023**: 6% organic growth, residential sales down mid-single digits, aftermarket up mid-teens YTD, full-year projected price cost positive up 300 million plus 300 million of productivity. * **Viessmann Climate Solutions**: Base business tracking to €4 billion in sales this year and €700 million EBITDA, double-digit growth profile. * **Business Exits**: Formal process of engaging with prospective buyers for security and commercial refrigeration begun, industrial fire in market next month, commercial and residential fire businesses targeting listing dates in late spring or early summer 2024. Market Trends and Opportunities * **Residential**: Sales expected to be down a few percent, volume down in high single-digit range, light commercial up around 20%. * **Light Commercial**: Strong across the board, 60% growth in Q2, 35% growth in Q1, driven by new beltless design, ESSER Funding for K-12, and lower end retail. * **Commercial Applied**: Up double digits, driven by growth in aftermarket controls, strong backlog, and focus on key verticals like K-12, healthcare, and data centers. * **Data Centers**: Strong growth, well-positioned in Europe and the United States, leveraging heat pumps and chillers, and Nlyte acquisition for heat dissipation and optimization. * **Heat Pumps**: Bullish on residential and commercial applications, driven by IRA incentives and energy efficiency benefits. * **Sustainability**: Focus on all things digitally enabled lifecycle revenues and sustainability, with strong traction in aftermarket and ESG initiatives. Competitive Positioning * **Brand**: Attractive brand recognition globally, with premier brand recognition for Carrier and other brands like Toshiba. * **Channel Access**: Deliberate channel approach that works globally. * **Product Portfolio**: Strong focus on energy efficiency, with new digital platforms and innovative products like mag-bearing chillers. * **Service**: Aftermarket tracking well, with high single-digit to low double-digit growth, strong coverage, and growing attachment rates. Strategic Initiatives * **Portfolio**: Exiting Fire and Security businesses, focusing on HVAC, Climate Solutions, and Energy Efficiency. * **Viessmann Acquisition**: Gaining a strong position in the European residential heating market and expanding into commercial and industrial markets. * **Capital Markets**: Exploring IPO for commercial and residential fire businesses to clean exit, maximize value, and improve leverage ratio. Regulatory Environment * **Germany**: Encouraging legislation for sustainability, with increased funding and subsidies for heat pumps and district heating. * **Europe**: Strong trajectory for heat pumps and greenification, with alignment with the European Green Deal-Fit for 55 and repower EU targets.

Carrier Global Corporation (NYSE:CARR) Q2 2023 Earnings Conference Call July 27, 2023 7:30 AM ET Company Participants Sam Pearlstein - Vice President of Investor Relations David Gitlin - Chairman and Chief Executive Officer Patrick Goris - Chief Financial Officer Conference Call Participants Jeffrey Sprague - Vertical Research Partners Steve Tusa - JPMorgan Julian Mitchell - Barclays Deane Dray - RBC Capital Markets Nigel Coe - Wolfe Research Joe Ritchie - Goldman Sachs Josh Pokrzywinski - Morgan Stanley No ...

See "Use and Definitions of Non-GAAP Financial Measures" for additional information regarding non-GAAP measures (Unaudited) (Unaudited) 2023 Adjusted Operating Profit Reconciliation 22 See "Use and Definitions of Non-GAAP Financial Measures" for additional information regarding non-GAAP measures 23 See "Use and Definitions of Non-GAAP Financial Measures" for additional information regarding non-GAAP measures Q2 2022 EPS Reconciliation 25 See "Use and Definitions of Non-GAAP Financial Measures" for additiona ...

30 Three Months Ended June 30, 2023 Compared with the Three Months Ended June 30, 2022 | --- | --- | |------------------------------------------------------------------------|------------------------------------| | components of the year-over-year change were as follows: | Three Months Ended June 30, 2023 | | Organic | 6 % | | Foreign currency translation | — % | | Acquisitions and divestitures, net | 9 % | | Total % change | 15 % | 31 Gross margin increased by $308 million compared with the three months en ...

Carrier Global Corporation Conference Call Summary Company Overview - **Company**: Carrier Global Corporation (NYSE:CARR) - **Event**: Bernstein's 39th Annual Strategic Decisions Conference 2023 - **Date**: June 1, 2023 - **Participants**: David Gitlin (CEO and Chairman), Brendan Luecke (Bernstein Analyst) Key Points Industry and Market Position - Carrier is focused on becoming a leader in intelligent climate and energy solutions, emphasizing energy efficiency and climate-friendly technologies [14][15] - The company is integrating with Viessmann Climate Solutions, which is positioned in the fastest-growing market globally for home energy management solutions [3][4] Financial Performance and Strategy - Aftermarket sales increased in the high teens during Q1 2023, with expectations for price/cost benefits to improve in Q2 [2] - The company aims to achieve strong productivity to fund growth investments [2] - Carrier's net debt has decreased from $10 billion at the time of its spin-off to $5 billion, with a target leverage ratio of under 2 within a couple of years post-Viessmann acquisition [11][12] Business Exits - Carrier plans to exit its fire and security and commercial refrigeration businesses, which generated approximately $3.1 billion and $1.1 billion in sales, respectively [5][6] - The company has received significant interest from potential buyers, indicating confidence in achieving favorable multiples [4][6] Acquisition of Viessmann - The acquisition of Viessmann is expected to close by the end of 2023, enhancing Carrier's position in the residential heating market in Europe [17][18] - Viessmann is recognized for its direct-to-installer channel and comprehensive product portfolio, which complements Carrier's existing offerings [48] Market Trends and Growth Opportunities - The transition from fossil fuel heating to electric heating (heat pumps) is driving significant growth in Europe, with a projected increase in heat pump installations from 1 million to 10 million by 2030 [35][36] - Carrier anticipates a compound annual growth rate (CAGR) of around 20% for heat pumps in Europe, driven by regulatory changes banning fossil fuel heating [35][36] Digital Transformation and Services - Carrier is investing in digital tools like Abound, which provides real-time monitoring of carbon emissions and energy efficiency for commercial buildings [86][87] - The company aims to grow aftermarket sales from $4.5 billion to $7 billion by 2026, leveraging its existing installed base and improving attachment rates [40][81] Challenges and Risks - The North American residential HVAC market is experiencing a downturn, with expectations of flat sales and a high single-digit volume decline for 2023 [66] - Regulatory changes in Europe may impact growth, but the overarching trend towards electrification is expected to continue [41][43] Conclusion - Carrier is strategically positioning itself for future growth through acquisitions, divestments, and a focus on digital solutions and energy efficiency, while navigating current market challenges and regulatory landscapes [19][53]

Carrier Global Corporation Conference Call Summary Company Overview - **Company**: Carrier Global Corporation (NYSE:CARR) - **Event**: Wolfe Research 16th Annual Global Transportation & Industrials Conference - **Date**: May 23, 2023 Key Points Industry and Market Context - The macro trading environment is being closely monitored, particularly in relation to the acquisition of Wiesmann, which is seen as a strategic move to enhance Carrier's portfolio in the residential heating and cooling market in Europe [1][2] - The company is experiencing mixed performance across its portfolio, with commercial HVAC and North American truck and trailer segments performing well, while the container and commercial refrigeration businesses are facing challenges [39][40] Acquisition of Wiesmann - The acquisition of Wiesmann is expected to provide immediate access to a faster-growing residential heating and cooling market in Europe, where Carrier has had limited exposure [2] - Regulatory hurdles for the acquisition are standard and manageable, with a timeline for closure by the end of the year [3][5] - Wiesmann's management team will continue to lead the business post-acquisition, leveraging their expertise and existing channels to enhance Carrier's product offerings [6] Investment and Capacity Expansion - Wiesmann has made significant investments to transition from boilers to heat pumps, with this year being a peak for capital expenditures [8] - The company does not anticipate a significant impact on free cash flow conversion due to these investments, as Wiesmann has historically maintained a high free cash flow conversion rate of 90% to 95% [9] Product Transition and Market Dynamics - The boiler business is expected to decline in Europe, while heat pumps are projected to grow at strong double-digit rates, with heat pumps priced significantly higher than boilers [11][12] - The transition to heat pumps is seen as an opportunity for revenue growth, with the potential for significant margin retention [12] Portfolio Optimization and Divestitures - Carrier is actively working on divesting non-core assets, including foreign security and commercial refrigeration segments, with a focus on achieving a clean exit and maximizing proceeds [16][22] - The company is optimistic about the interest in its fire and security businesses, which are considered high-margin and low-capital requirements [23] Aftermarket and Service Revenue Growth - Carrier is focusing on expanding its aftermarket services, which currently represent about 20% to 25% of the total available market for its installed base [49] - The company has implemented strategies to enhance service revenues, which have been growing at strong double-digit rates [49] Market Performance and Outlook - The residential segment is expected to see a decline in volume but offset by pricing and mix improvements, with revenues projected to remain flat year-over-year [55] - The company anticipates a recovery in the container business in the second half of the year, following a downturn that began in Q3 of the previous year [52] Pricing Strategy - Carrier expects to achieve approximately $500 million in pricing actions for the year, which equates to a 2% to 3% increase overall [57] - Pricing for new units is holding steady, with a 10% to 15% increase in SEER units [56] Additional Insights - The installer network for Wiesmann is considered critical for maintaining competitive advantage, as there is a shortage of trained installers in the market [35][36] - The company is well-positioned to leverage its existing facilities and synergies from previous acquisitions to support growth in the heat pump market [9][12] This summary encapsulates the key discussions and insights from the conference call, highlighting Carrier's strategic initiatives, market dynamics, and financial outlook.

Carrier Global Corporation (NYSE:CARR) 2023 Goldman Sachs Industrials and Materials Conference Call May 10, 2023 12:30 PM ET Company Participants David Gitlin - Chairman and Chief Executive Officer Sam Pearlstein - VP of Investor Relations Conference Call Participants Joe Ritchie - Goldman Sachs Joe Ritchie Excited to have our post-lunch conversation with Carrier, obviously a lot of news with Carrier recently. We are excited to have the Chairman and CEO, Dave Gitlin as well as VP of Investor Relations, Sam ...

Carrier Global Corporation (NYSE:CARR) Oppenheimer's AT Annual Industrial Growth Conference Call May 9, 2023 3:45 PM ET Company Participants Patrick Goris - SVP & CFO Conference Call Participants Operator Well, good afternoon, everyone. Thanks so much for joining us at day two of Oppenheimer's AT Annual Industrial Growth Conference. The last session of the day for us, and very pleased to be ending it with the management of Carrier. CFO, Patrick Goris, VP of IR, ladies and gentlemen. Welcome. Thanks so much ...

Carrier Global Corporation (NYSE:CARR) Q1 2023 Earnings Conference Call April 27, 2023 7:30 AM ET Company Participants Sam Pearlstein - Vice President of Investor Relations David Gitlin - Chairman & Chief Executive Officer Patrick Goris - Chief Financial Officer Conference Call Participants Julian Mitchell - Barclays Nigel Coe - Wolfe Research Jeffrey Sprague - Vertical Research Joe Ritchie - Goldman Sachs Tommy Moll - Stephens Noah Kaye - Oppenheimer Deane Dray - RBC Josh Pokrzywinski - Morgan Stanley Bret ...

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