Trane Technologies plc (NYSE:TT) Q1 2022 Earnings Conference Call May 4, 2022 10:00 AM ET Company Participants Zach Nagle - Vice President of Investor Relations Dave Regnery - Chairman & Chief Executive Officer Chris Kuehn - Executive Vice President & Chief Financial Officer Conference Call Participants Scott Davis - Melius Research Joe Ritchie - Goldman Sachs John Walsh - Credit Suisse Andy Kaplowitz - Citigroup Julian Mitchell - Barclays Josh Pokrzywinski - Morgan Stanley Steve Tusa - JPMorgan Nigel Coe - ...

PART I FINANCIAL INFORMATION [Item 1 - Financial Statements](index=3&type=section&id=Item%201%20-%20Financial%20Statements) The company reports increased Q1 2022 revenues and earnings but a decrease in operating cash flow [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Q1 2022 results show revenue growth to $3.36 billion, while net cash from operations turned negative Key Financial Results | In millions, except per share amounts | 2022 | 2021 | | :--- | :--- | :--- | | **Net revenues** | $3,355.5 | $3,017.6 | | **Operating income** | $388.2 | $353.2 | | **Net earnings attributable to Trane Technologies plc** | $260.2 | $235.2 | | **Diluted EPS (Continuing operations)** | $1.13 | $0.96 | | **Diluted EPS (Net earnings)** | $1.10 | $0.97 | Condensed Consolidated Balance Sheets | In millions | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $6,030.5 | $6,470.9 | | **Total assets** | $17,636.9 | $18,059.8 | | **Total current liabilities** | $4,594.4 | $4,752.4 | | **Total liabilities** | $11,620.4 | $11,786.7 | | **Total equity** | $6,016.5 | $6,273.1 | Condensed Consolidated Statements of Cash Flows | In millions | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $(188.2) | $260.1 | | **Net cash provided by (used in) investing activities** | $(83.3) | $(113.7) | | **Net cash provided by (used in) financing activities** | $(534.6) | $(554.9) | | **Net increase (decrease) in cash and cash equivalents** | $(810.8) | $(451.9) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail inventory increases, stable debt, share repurchases, and a $270 million asbestos settlement fund - On June 18, 2020, subsidiaries Aldrich and Murray filed for Chapter 11 bankruptcy to resolve all current and future asbestos-related claims, leading to their deconsolidation[25](index=25&type=chunk) - In Q1 2022, the company repurchased **$350.0 million** of its ordinary shares and authorized a new **$3.0 billion** share repurchase program[62](index=62&type=chunk) - On March 2, 2022, a **$270.0 million** Qualified Settlement Fund (QSF) was funded to address asbestos claims, resulting in a significant operating cash outflow[99](index=99&type=chunk) Inventories | In millions | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Raw materials | $496.3 | $404.6 | | Work-in-process | $270.7 | $215.9 | | Finished goods | $1,188.7 | $982.9 | | **Total** | **$1,872.3** | **$1,530.8** | Net Revenues by Segment | In millions | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | **Americas** | $2,633.2 | $2,325.7 | | **EMEA** | $441.3 | $443.9 | | **Asia Pacific** | $281.0 | $248.0 | | **Total Net revenues** | **$3,355.5** | **$3,017.6** | [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses revenue growth driven by pricing, offset by margin pressure from inflation and supply chain issues [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2022 net revenues rose 11.2% on pricing and volume, but gross margin declined 210 basis points from inflation - The **11.2% increase in Net revenues** was driven by a 7.3% contribution from pricing and a 5.1% contribution from volume[127](index=127&type=chunk) - **Gross profit margin decreased by 210 basis points** primarily due to significant direct material and freight inflation, partially offset by price realization[128](index=128&type=chunk) Consolidated Results of Operations | In millions | 2022 | 2021 | | :--- | :--- | :--- | | **Net revenues** | $3,355.5 | $3,017.6 | | **Gross profit** | $989.0 | $953.2 | | **Gross profit %** | 29.5% | 31.6% | | **Operating income** | $388.2 | $353.2 | | **Operating income %** | 11.6% | 11.7% | [Segment Results](index=30&type=section&id=Segment%20Results) The Americas segment led revenue growth, while all segments saw margin declines due to inflation and supply chain issues - Americas Segment Adjusted EBITDA margin **decreased by 110 basis points to 15.4%** due to significant material and freight inflation and supply chain challenges[139](index=139&type=chunk) - EMEA and Asia Pacific Segment Adjusted EBITDA margins **decreased by 390 and 200 basis points**, respectively, due to inflation and supply chain challenges[142](index=142&type=chunk)[144](index=144&type=chunk) Segment Performance | Segment | Net Revenues 2022 (M) | % Change | Segment Adjusted EBITDA 2022 (M) | EBITDA Margin 2022 | | :--- | :--- | :--- | :--- | :--- | | **Americas** | $2,633.2 | 13.2% | $405.6 | 15.4% | | **EMEA** | $441.3 | (0.6)% | $59.1 | 13.4% | | **Asia Pacific** | $281.0 | 13.3% | $43.5 | 15.5% | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity, deploying capital for share repurchases and dividends despite lower operating cash flow - The company repurchased **$350.0 million** of its ordinary shares during Q1 2022 and authorized a new **$3.0 billion** share repurchase program in February 2022[148](index=148&type=chunk) Financial Position | In millions | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,348.4 | $2,159.2 | | **Total debt** | $4,843.0 | $4,842.1 | | **Total equity** | $6,016.5 | $6,273.1 | | **Debt-to-total capital ratio** | 44.6% | 43.6% | Free Cash Flow (Non-GAAP) | In millions | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash provided by (used in) continuing operating activities** | $(3.9) | $262.9 | | **Capital expenditures** | $(74.8) | $(43.9) | | **QSF funding (continuing operations component)** | $91.8 | — | | **Free cash flow (Non-GAAP)** | **$27.3** | **$235.9** | [Item 3 - Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risk disclosures are incorporated by reference from the company's 2021 Annual Report on Form 10-K - The company's disclosures regarding its exposure to market risk are incorporated by reference from its Annual Report on Form 10-K for the fiscal year ended December 31, 2021[183](index=183&type=chunk) [Item 4 - Controls and Procedures](index=40&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Based on an evaluation as of March 31, 2022, the CEO and CFO concluded that the company's **disclosure controls and procedures are effective**[184](index=184&type=chunk) - There were **no material changes** in the company's internal control over financial reporting during the first quarter of 2022[185](index=185&type=chunk) PART II OTHER INFORMATION [Item 1 - Legal Proceedings](index=41&type=section&id=Item%201%20-%20Legal%20Proceedings) The company addresses asbestos claims through subsidiary bankruptcy proceedings, including a $270 million settlement fund - The Chapter 11 filings for subsidiaries Aldrich and Murray aim to **permanently resolve all current and future asbestos-related claims**[190](index=190&type=chunk) - An agreement in principle would establish a trust funded with **$545.0 million** to resolve all asbestos claims[191](index=191&type=chunk) - On March 2, 2022, the company funded a **$270.0 million Qualified Settlement Fund (QSF)** as part of the bankruptcy proceedings[193](index=193&type=chunk) [Item 1A - Risk Factors](index=42&type=section&id=Item%201A%20-%20Risk%20Factors) A new risk factor regarding the Russia-Ukraine conflict is disclosed, potentially heightening economic and supply chain risks - A new risk factor has been added regarding the Russian invasion of Ukraine, though the direct impact is **not expected to be material** as of March 31, 2022[196](index=196&type=chunk) - The conflict in Ukraine may heighten other existing risks, such as **supply chain disruptions and increased risk of cyberattacks**[197](index=197&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased $350 million of shares in Q1 2022 and authorized a new $3 billion repurchase program - In February 2022, the Board of Directors authorized a new **$3.0 billion share repurchase program**[198](index=198&type=chunk) Share Repurchases | Period | Total shares purchased (000's) | Average price paid per share | Total purchased as part of program (000's) | | :--- | :--- | :--- | :--- | | Jan 2022 | 1,715.1 | $184.11 | 1,711.3 | | Feb 2022 | 258.7 | $167.43 | 206.4 | | Mar 2022 | 130.8 | $152.06 | — | | **Total** | **2,104.6** | **$180.07** | **1,917.7** | [Item 6 - Exhibits](index=43&type=section&id=Item%206%20-%20Exhibits) This section lists filed exhibits, including required CEO/CFO certifications and financial statements in iXBRL format - The exhibits filed with this report include CEO and CFO certifications pursuant to Sarbanes-Oxley and financial data in iXBRL format[200](index=200&type=chunk)

Investor Presentation March 2022 TECHNOLOGIE® Safe Harbor This presentation includes "forward-looking statements" which are statements that are not historical facts, including statements that relate to our future performance, statements relating to the continued impact of the COVID-19 global pandemic, capital deployment including the amount and timing of our dividends, our share repurchase program including the amount of shares to be repurchased and the timing of such repurchases and our capital allocation ...

丁 3 人 N 三 February 2022 Investor Presentation Safe Harbor This presentation includes "forward-looking statements" which are statements that are not historical facts, including statements that relate to our future performance, statements relating to the continued impact of the COVID-19 global pandemic, capital deployment including the amount and timing of our dividends, our share repurchase program including the amount of shares to be repurchased and the timing of such repurchases and our capital allocation ...

Part I Covers the company's business operations, risk factors, properties, and legal proceedings [Business](index=6&type=section&id=Item%201.%20Business) Trane Technologies, a global climate innovator, provides HVAC and transport refrigeration solutions through its Trane and Thermo King brands, focusing on sustainability and regional segments [Overview and Reportable Segments](index=6&type=section&id=Overview%20and%20Reportable%20Segments) Trane Technologies is a global climate innovator delivering sustainable HVAC and transport refrigeration solutions via Trane and Thermo King brands - Trane Technologies is a global climate innovator focused on sustainable and efficient solutions for buildings, homes, and transportation through its primary brands, Trane® and Thermo King®[18](index=18&type=chunk) - The company has made significant 2030 Sustainability Commitments, including the 'Gigaton Challenge' to reduce customer greenhouse gas emissions by **one billion metric tons** and achieving carbon-neutral operations[18](index=18&type=chunk) 2021 Net Revenues by Reportable Segment | Segment | 2021 Net Revenues (in billions) | Description | | :--- | :--- | :--- | | Americas | $11.0 | Commercial & residential HVAC, transport refrigeration in North & Latin America | | EMEA | $1.9 | Commercial HVAC, industrial processing, transport refrigeration in Europe, Middle East & Africa | | Asia Pacific | $1.2 | Commercial HVAC and transport refrigeration throughout the Asia Pacific region | [Business Operations and Strategy](index=7&type=section&id=Business%20Operations%20and%20Strategy) The company operates in competitive global markets, focusing on R&D, sustainability, and managing seasonal demand and order backlogs - The company's products are sold in highly competitive global markets, with principal competition based on price, quality, delivery, service, technology, and innovation[22](index=22&type=chunk)[23](index=23&type=chunk) - In 2021, approximately **29% of net revenues** were derived from outside the U.S., with products sold in about 100 countries[25](index=25&type=chunk) - Demand for HVAC products is seasonal, with sales historically higher in the second and third quarters, corresponding to spring and summer in the northern hemisphere[28](index=28&type=chunk) - Research and development expenses totaled **$193.5 million** in 2021, with a focus on sustainability improvements like energy efficiency and the use of lower global warming potential refrigerants[29](index=29&type=chunk) Order Backlog (as of December 31) | In millions | 2021 | 2020 | | :--- | :--- | :--- | | Americas | $3,856.7 | $1,788.0 | | EMEA | $727.2 | $426.2 | | Asia Pacific | $852.8 | $680.6 | | **Total** | **$5,436.7** | **$2,894.8** | [Corporate Transactions and Legal Matters](index=10&type=section&id=Corporate%20Transactions%20and%20Legal%20Matters) This section details the 2020 Industrial segment separation and ongoing Chapter 11 bankruptcy proceedings for asbestos claims - On February 29, 2020, the company completed a Reverse Morris Trust transaction, separating its Industrial segment (Ingersoll Rand Industrial) and receiving a special cash payment of **$1.9 billion**[39](index=39&type=chunk) - In 2021, the company paid Ingersoll Rand **$49.5 million** to settle post-transaction items related to working capital, cash, and benefit plan funding levels[40](index=40&type=chunk) - Subsidiaries Aldrich and Murray filed for Chapter 11 bankruptcy on June 18, 2020, to resolve all current and future asbestos-related claims through a §524(g) trust[42](index=42&type=chunk)[43](index=43&type=chunk) - In January 2022, the Bankruptcy Court approved the funding of a **$270.0 million** trust (QSF) to facilitate the resolution of asbestos claims, with funding expected in Q1 2022[44](index=44&type=chunk)[45](index=45&type=chunk) [Human Capital Management](index=11&type=section&id=Human%20Capital%20Management) The company manages human capital through diversity initiatives, strong safety records, and employee retention programs Employee Statistics (as of Dec 31, 2021) | Metric | Value | | :--- | :--- | | Total Employees | ~37,000 | | Employees Outside U.S. | ~13,000 | | Women in Global Workforce | 25.5% | | Racially/Ethnically Diverse (U.S.) | 36.4% | | Women in Leadership | 23.1% | 2021 Employee Retention Rates (excluding retirements) | Category | Retention Rate | | :--- | :--- | | Key Talent (High Performing/Potential) | 94.6% | | Company-wide (Voluntary) | 89.5% | - The company fosters diversity and inclusion through various initiatives, including Employee Resource Groups (ERGs), Women's Leadership Development Programs, and membership in coalitions like Paradigm for Parity and OneTen[53](index=53&type=chunk)[54](index=54&type=chunk) - In 2021, the company maintained a strong safety record with a Lost-time Incident Rate below **0.10** and a Recordable Rate below **1.00**, while implementing extensive COVID-19 safety protocols[57](index=57&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from economic uncertainties, supply chain disruptions, litigation, cybersecurity threats, and regulatory changes [Economic and Business Risks](index=15&type=section&id=Economic%20and%20Business%20Risks) This section outlines risks from economic disruption, supply chain issues, commodity price volatility, and intense market competition - The COVID-19 pandemic continues to pose risks through economic disruption, supply chain delays, worker absenteeism, and increased operational costs[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - The company is exposed to risks from commodity shortages, supply chain constraints, and price volatility for materials like steel and non-ferrous metals, which could adversely affect financial results[74](index=74&type=chunk)[75](index=75&type=chunk) - The business faces significant competition worldwide from large corporations and smaller local operators, with a risk of disruptive technologies from non-traditional competitors[77](index=77&type=chunk) [Litigation and Regulatory Risks](index=18&type=section&id=Litigation%20and%20Regulatory%20Risks) This section details litigation risks from Chapter 11 asbestos claims and regulatory challenges related to climate change and sustainability - The Chapter 11 cases of subsidiaries Aldrich and Murray present significant risks and uncertainties regarding the ultimate determination of asbestos liability and the ability to consummate a reorganization plan[87](index=87&type=chunk)[92](index=92&type=chunk)[95](index=95&type=chunk) - Global climate change and related environmental regulations, particularly concerning refrigerants, could require costly product changes and impact the company's competitive position and results[104](index=104&type=chunk) - Failure to achieve the company's 2030 sustainability commitments, such as the 'Gigaton Challenge,' could result in reputational harm[105](index=105&type=chunk) [Cybersecurity, Tax, and Transaction Risks](index=20&type=section&id=Cybersecurity%2C%20Tax%2C%20and%20Transaction%20Risks) This section covers risks from cyber attacks, tax law changes, potential taxability of past transactions, and complexities of Irish domicile - The company is vulnerable to cyber attacks and security breaches of its IT systems and products, which could compromise proprietary information, disrupt operations, and lead to litigation or fines[97](index=97&type=chunk)[98](index=98&type=chunk) - Changes in tax laws, such as the U.S. TCJA and OECD proposals for a global minimum tax, could materially increase the company's tax burden and effective tax rate[111](index=111&type=chunk)[112](index=112&type=chunk) - There is a risk that the 2020 Reverse Morris Trust transaction could be determined to be taxable for U.S. or Irish tax purposes, potentially resulting in significant tax liabilities for the company and its shareholders[117](index=117&type=chunk)[118](index=118&type=chunk) - Being an Irish-domiciled company governed by the Irish Companies Act presents risks, as Irish law differs from U.S. law and may offer less protection to security holders[122](index=122&type=chunk)[123](index=123&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) The company operates 35 manufacturing and assembly plants globally, owning or leasing approximately 27 million square feet of space - The company operates **35 manufacturing and assembly plants** across the world, with locations in the Americas, EMEA, and Asia Pacific regions[129](index=129&type=chunk)[130](index=130&type=chunk) [Legal Proceedings](index=27&type=section&id=Item%203.%20Legal%20Proceedings) This section details ongoing Chapter 11 bankruptcy proceedings for subsidiaries Aldrich and Murray to resolve asbestos-related claims - Subsidiaries Aldrich and Murray filed for Chapter 11 bankruptcy to permanently resolve asbestos-related claims through a §524(g) trust[132](index=132&type=chunk)[133](index=133&type=chunk) - An agreement in principle was reached with the future asbestos claimants' representative to fund the trust with **$545.0 million**, consisting of **$540.0 million** in cash and a **$5.0 million** promissory note[134](index=134&type=chunk) - In January 2022, the Bankruptcy Court approved the initial funding of a **$270.0 million** Qualified Settlement Fund (QSF), which is expected to be funded in Q1 2022[135](index=135&type=chunk)[136](index=136&type=chunk) Part II Details common equity market, financial performance analysis, market risk, and internal controls [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section covers the company's common equity market, share repurchase activities, and cumulative total shareholder return performance Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased (000's) | Average Price Paid per Share | Total Value of Program Purchases ($000's) | | :--- | :--- | :--- | :--- | | October 2021 | 0.7 | $174.74 | — | | November 2021 | 1,195.8 | $191.14 | $228,573 | | December 2021 | 1,384.3 | $196.32 | $271,430 | | **Total** | **2,580.8** | **$193.91** | **$500,003** | - In February 2021, the Board authorized a new **$2.0 billion** share repurchase program. As of December 31, 2021, approximately **$1.4 billion** remained available under this authorization[142](index=142&type=chunk) Cumulative Total Shareholder Return (2016-2021) | Company/Index | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trane Technologies | $100 | $121 | $127 | $188 | $269 | $380 | | S&P 500 | $100 | $122 | $116 | $153 | $181 | $233 | | S&P 500 Industrials Index | $100 | $121 | $105 | $136 | $151 | $182 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial performance, liquidity, capital resources, and critical accounting estimates for the fiscal year 2021 [Results of Operations](index=33&type=section&id=Results%20of%20Operations) This section details the company's consolidated and segment-level financial performance, including revenue growth, gross profit, and operating income Consolidated Results of Operations (2021 vs. 2020) | In millions | 2021 | 2020 | Period Change | | :--- | :--- | :--- | :--- | | Net revenues | $14,136.4 | $12,454.7 | $1,681.7 | | Gross profit | $4,469.6 | $3,803.4 | $666.2 | | Operating income | $2,023.3 | $1,532.8 | $490.5 | | Earnings from continuing operations | $1,457.2 | $991.4 | $465.8 | | Net earnings | $1,436.6 | $870.0 | $566.6 | - Net revenues increased **13.5%** in 2021, driven by a **7.5%** increase in volume, **3.6%** from pricing, **1.6%** from acquisitions, and **0.8%** from favorable currency translation[170](index=170&type=chunk) - Gross profit margin increased by **110 basis points** to **31.6%** in 2021, primarily due to price realization and productivity benefits, which were partially offset by material and freight inflation[171](index=171&type=chunk) Segment Performance (2021 vs. 2020) | Segment | Net Revenues 2021 (in millions) | % Change | Segment Adjusted EBITDA 2021 (in millions) | % Change | Margin 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Americas | $10,957.1 | 13.1% | $2,008.8 | 19.7% | 18.3% | | EMEA | $1,944.9 | 18.0% | $359.2 | 35.2% | 18.5% | | Asia Pacific | $1,234.4 | 10.1% | $228.5 | 21.0% | 18.5% | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, debt levels, cash flow activities, and capital allocation strategies Key Liquidity Measures (as of December 31) | In millions | 2021 | 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,159.2 | $3,289.9 | | Total debt | $4,842.1 | $5,272.1 | | Total equity | $6,273.1 | $6,427.1 | | Debt-to-total capital ratio | 43.6% | 45.1% | Cash Flow Summary (Years ended December 31) | In millions | 2021 | 2020 | | :--- | :--- | :--- | | Net cash from continuing operating activities | $1,594.4 | $1,766.2 | | Net cash used in continuing investing activities | ($545.7) | ($338.5) | | Net cash (used in) from continuing financing activities | ($2,127.6) | $884.3 | - In 2021, the company repurchased and canceled **$1.1 billion** of its ordinary shares, completing its 2018 authorization and initiating repurchases under its new **$2.0 billion** 2021 authorization[193](index=193&type=chunk) - The quarterly dividend was increased by **11%** in February 2021 to **$0.59 per share** and by another **14%** in February 2022 to **$0.67 per share**[194](index=194&type=chunk) - The company expects to fund a **$270.0 million** Qualified Settlement Fund (QSF) in Q1 2022 related to the Aldrich and Murray Chapter 11 proceedings[199](index=199&type=chunk) [Critical Accounting Estimates](index=44&type=section&id=Critical%20Accounting%20Estimates) This section outlines key accounting judgments for goodwill impairment, revenue recognition, and employee benefit plan costs - Goodwill and indefinite-lived intangible assets are tested for impairment annually or when a triggering event occurs. Fair value is determined using a weighted combination of discounted cash flow, market multiple, and similar transaction methods[227](index=227&type=chunk)[230](index=230&type=chunk) - Revenue recognition requires judgment, particularly for contracts recognized over time using the cost-to-cost input method and for arrangements with multiple performance obligations[233](index=233&type=chunk)[234](index=234&type=chunk) - Determining costs for employee benefit plans, such as pensions, depends on various actuarial assumptions including discount rates, expected return on assets, and mortality rates, which are reviewed at each measurement date[236](index=236&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=47&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company is exposed to market risks from fluctuations in foreign currency exchange rates, commodity prices, and interest rates. It uses derivative instruments to manage these exposures - The company's largest foreign currency exposures are to the Euro and Chinese Yuan. A hypothetical **10% unfavorable change** in the average exchange rate would reduce translated Net revenues by approximately **$135 million** (Euro) and **$70 million** (Yuan), respectively[240](index=240&type=chunk) - A sensitivity analysis on currency derivative instruments at year-end 2021 showed that a hypothetical **10% adverse change** in exchange rates would result in an unrealized loss of approximately **$18.1 million**[242](index=242&type=chunk) - A sensitivity analysis on commodity derivative instruments at year-end 2021 showed that a hypothetical **10% decrease** in commodity prices would result in an unrealized loss of approximately **$7.5 million**[243](index=243&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[247](index=247&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2021. This assessment was audited and confirmed by PricewaterhouseCoopers LLP[250](index=250&type=chunk)[251](index=251&type=chunk) Part III Details corporate governance, executive compensation, security ownership, related party transactions, and auditor fees [Directors, Executive Officers and Corporate Governance](index=50&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement - Information concerning directors, delinquent Section 16(a) reports, and corporate governance is incorporated by reference from the 2022 Proxy Statement[256](index=256&type=chunk) [Executive Compensation](index=50&type=section&id=Item%2011.%20Executive%20Compensation) Details on executive and director compensation are incorporated by reference from the 2022 Proxy Statement - All information related to executive and director compensation is incorporated by reference from the 2022 Proxy Statement[257](index=257&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=50&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2022 Proxy Statement - Information on security ownership and equity compensation plans is incorporated by reference from the 2022 Proxy Statement[258](index=258&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=50&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Details on related person transactions and director independence are incorporated by reference from the 2022 Proxy Statement - Information regarding related transactions and director independence is incorporated by reference from the 2022 Proxy Statement[259](index=259&type=chunk) [Principal Accountant Fees and Services](index=50&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2022 Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the 2022 Proxy Statement[260](index=260&type=chunk) Part IV Covers exhibits and financial statement schedules [Exhibits and Financial Statement Schedules](index=51&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K - This item contains the list of financial statements, schedules, and exhibits filed with the Form 10-K[263](index=263&type=chunk)[264](index=264&type=chunk)

Trane Technologies plc (NYSE:TT) Q4 2021 Earnings Conference Call January 31, 2022 10:00 AM ET Company Participants Zac Nagle - Vice President of Investor Relations Dave Regnery - Chair & Chief Executive Officer Chris Kuehn - Executive Vice President & Chief Financial Officer Conference Call Participants Andy Kaplowitz - Citigroup Julian Mitchell - Barclays Josh Pokrzywinski - Morgan Stanley Jeff Sprague - Vertical Research Scott Davis - Melius Research Joe Ritchie - Goldman Sachs Joel Tiss - BMO Emily Xu - ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|----------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth-Quarter | | | | | | | | | | and Full Year | | | | | | | | | | | | | | | | | | | | 2021 Results | | | | | | | January 31, 2022 TECHNE Safe Harbor 2 This presentation includes "forward-looking statements" which are statements that are not his ...

Third-Quarter 2021 Results November 3, 2021 TRANSE Safe Harbor 2 This presentation includes "forward-looking statements" which are statements that are not historical facts, including statements that relate to our future performance, statements relating to the continued impact of the COVID-19 global pandemic, capital deployment including the amount and timing of our dividends, our share repurchase program including the amount of shares to be repurchased and the timing of such repurchases and our capital allo ...

Call Start: 10:00 January 1, 0000 11:09 AM ET Trane Technologies PLC (NYSE:TT) Q3 2021 Results Conference Call November 3, 2021 10:00 AM ET Company Participants David Regnery – Chief Executive Officer Chris Kuehn – Executive Vice President and Chief Financial Officer Zac Nagle – Vice President of Investor Relations Conference Call Participants Joe Ritchie – Goldman Sachs Scott Davis – Analyst Jeff Sprague – Vertical Research Julian Mitchell – Barclays John Walsh – Credit Suisse Andy Kaplowitz – Citigroup S ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34400 TRANE TECHNOLOGIES PLC (Exact name of registrant as specified in its charter) _______________________________ Washington, D.C. 20549 _______________________________ FORM 10-Q _______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ...