ACROFAN

Trane Technologies Reports Strong First-Quarter 2021 Results; Raises Full-Year Revenue and EPS Guidance

Highlights (first-quarter 2021 versus first-quarter 2020, unless otherwise noted): Reported bookings of $4.1 billion, up 34 percent; organic bookings* up 31 percent Reported revenues of $3.0 billion, up 14 percent; organic revenues* up 11 percent GAAP operating margin up 590 bps; adjusted operating margin* up 500 bps GAAP continuing EPS of $0.96; adjusted continuing EPS* of $1.01, up 135 percent *This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations. SWORDS, Ireland, May 6, 2021 /PRNewswire/ -- Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $0.96 for the first quarter of 2021. Adjusted continuing EPS was $1.01, up 135 percent, which excludes $14.7 million related to planned restructuring and transformation costs. First-Quarter 2021 Results Financial Comparisons - First-Quarter Continuing Operations $, millions except EPS Q1 2021 Q1 2020 Y-O-Y Change Organic Y-O-Y Change Bookings $4,131 $3,074 34% 31% Net Revenues $3,018 $2,641 14% 11% GAAP Operating Income $353 $154 129% GAAP Operating Margin 11.7% 5.8% 590 bps Adjusted Operating Income* $368 $191 93% Adjusted Operating Margin* 12.2% 7.2% 500 bps Adjusted EBITDA* $437 $261 67% Adjusted EBITDA Margin* 14.5% 9.9% 460 bps GAAP Continuing EPS $0.96 $0.21 357% Adjusted Continuing EPS $1.01 $0.43 135% Restructuring and Transformation Costs ($14.7) ($36.5) $21.8 "Given exceptional first-quarter performance and steadily improving end markets, we have raised our full year 2021 guidance above our previous ranges for both revenue growth and EPS. We now expect revenue growth of approximately 10.5 percent and adjusted EPS of approximately $6.00, $0.50 above the high end of our previous range," said Mike Lamach, chairman and CEO of Trane Technologies. "During the first quarter, our global team's relentless focus on sustainability and disciplined execution of our strategy led to robust bookings growth, revenue growth and margin expansion both at the enterprise level and in each of our business segments. We are extremely well-positioned as we enter the balance of 2021, with record backlog and transformation-related savings to invest in innovation that drives market outgrowth, maintains strong leverage and generates powerful cash flow. This flywheel powers our balanced capital allocation strategy and will enable us to continue delivering strong and differentiated returns for our shareholders." Highlights from the First Quarter of 2021 (all comparisons against the first quarter of 2020 unless otherwise noted) Strong execution drove revenue, operating income and continuing EPS growth despite ongoing COVID-19 pandemic-related impacts. Enterprise reported bookings were up 34 percent and organic bookings were up 31 percent driven by growth in all segments. Enterprise reported revenues were up 14 percent; enterprise organic revenues were up 11 percent. Enterprise reported revenue growth included approximately 2 percentage points of growth from acquisitions and approximately 1 percentage point of foreign exchange impact. GAAP operating margin was up 590 basis points, adjusted operating margin was up 500 basis points, and adjusted EBITDA margin was up 460 basis points, driven by strong performance across all three segments. First-Quarter Business Review (all comparisons against the first quarter of 2020 unless otherwise noted) Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating and cooling systems, building controls, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions. $, millions Q1 2021 Q1 2020 Y-O-Y Change Organic Y-O-Y Change Bookings $3,251.6 $2,367.5 37% 36% Net Revenues $2,325.7 $2,097.8 11% 9% GAAP Operating Income $323.1 $184.8 75% GAAP Operating Margin 13.9% 8.8% 510 bps Adjusted Operating Income $324.5 $205.6 58% Adjusted Operating Margin 14.0% 9.8% 420 bps Adjusted EBITDA $383.8 $262.1 46% Adjusted EBITDA Margin 16.5% 12.5% 400 bps Americas delivered strong revenue growth and margin expansion despite ongoing COVID-19 pandemic-related impacts. Americas reported bookings were up 37 percent and organic bookings were up 36 percent. Reported revenues were up 11 percent and organic revenues were up 9 percent. Commercial HVAC organic revenues were flat. Residential HVAC organic revenues were up over 30 percent. Transport organic revenues were up mid-teens. Americas reported revenue growth included approximately 2 percentage points of growth from acquisitions. GAAP operating margin increased 510 basis points, adjusted operating margin increased 420 basis points and adjusted EBITDA margin increased 400 basis points. Price, volume and productivity more than offset material and other inflation. Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating and cooling systems, services and solutions for commercial buildings, and transport refrigeration systems and solutions. $, millions Q1 2021 Q1 2020 Y-O-Y Change Organic Y-O-Y Change Bookings $570.6 $442.6 29% 18% Net Revenues $443.9 $364.3 22% 12% GAAP Operating Income $67.2 $36.4 85% GAAP Operating Margin 15.1% 10.0% 510 bps Adjusted Operating Income $67.9 $37.0 84% Adjusted Operating Margin 15.3% 10.2% 510 bps Adjusted EBITDA $76.7 $43.2 78% Adjusted EBITDA Margin 17.3% 11.9% 540 bps EMEA delivered strong revenue growth and margin expansion despite ongoing COVID-19 pandemic- related impacts. EMEA reported bookings were up 29 percent and organic bookings were up 18 percent. Reported revenues were up 22 percent and organic revenues were up 12 percent. Commercial HVAC organic revenues were up mid-teens and Transport organic revenues were up high-single digits. EMEA reported revenue growth included approximately 8 percentage points of foreign exchange impact and approximately 2 percentage points of growth from acquisitions. GAAP and adjusted operating margins increased 510 basis points and adjusted EBITDA margin improved 540 basis points. Price, volume and productivity more than offset material and other inflation. Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating and cooling systems, services and solutions for commercial buildings and transport refrigeration systems and solutions. $, millions Q1 2021 Q1 2020 Y-O-Y Change Organic Y-O-Y Change Bookings $309.1 $263.3 17% 14% Net Revenues $248.0 $179.2 38% 34% GAAP Operating Income $39.2 $6.5 503% GAAP Operating Margin 15.8% 3.6% 1220 bps Adjusted Operating Income $39.3 $7.6 417% Adjusted Operating Margin 15.8% 4.2% 1160 bps Adjusted EBITDA $43.5 $10.6 310% Adjusted EBITDA Margin 17.5% 5.9% 1160 bps Asia Pacific delivered strong revenue growth and margin expansion despite ongoing COVID-19 pandemic-related impacts. Asia Pacific reported bookings were up 17 percent and organic bookings were up 14 percent. Reported revenues were up 38 percent and organic revenues were up 34 percent. Growth in Asia Pacific was led by China. Asia Pacific reported revenue growth included approximately 4 percentage points of growth primarily from foreign exchange impacts. GAAP operating margin improved 1220 basis points, adjusted operating margin improved 1160 basis points and adjusted EBITDA margin improved 1160 basis points. Price, volume and productivity more than offset material and other inflation. Balance Sheet and Cash Flow $, millions Q1 2021 Q1 2020 Y-O-Y Change Cash From Continuing Operating Activities Y-T-D $263 ($129) $392 Free Cash Flow Y-T-D* $236 ($122) $358 Working Capital/Revenue* 1.5% 5.1% 360 bps decrease Cash Balance 31 March $2,838 $2,648 $190 Debt Balance 31 March $4,972 $5,575 ($603) First-quarter 2021 cash flow from continuing operating activities was $263 million and free cash flow was $236 million. The Company continues to expect 2021 free cash flow to be equal to or greater than 100 percent of adjusted net earnings.* Capital Deployment The Company continues to reinvest in employee safety, innovation and technology projects, and capital expenditures to support its core sustainability strategy. During the first quarter, the Company paid $140 million in dividends. The Company expects to pay a competitive and growing dividend, currently at $2.36 per share annualized, reflecting an approximately 11 percent increase over 2020. The Company deployed capital of $70 million for acquisitions and investments, $104 million in share repurchases and $300 million in debt retirement in the quarter. The Company expects to deploy approximately $2.5 billion as part of its balanced capital allocation strategy in 2021, inclusive of approximately $564 million in dividends, $1.5 billion between strategic value-accretive mergers and acquisitions and share repurchases and $425 million in debt retirement. The Company expects to continue to deploy 100 percent of excess cash to shareholders over time. Full-Year 2021 Guidance Reported revenues up approximately 10.5 percent; organic revenues up approximately 9 percent versus 2020. GAAP continuing EPS of $5.75, including EPS of $(0.25) for transformation and other restructuring costs; adjusted continuing EPS of $6.00, up 35 percent versus 2020. Additional information regarding the company's 2021 guidance is included in the company's earnings presentation found at www.tranetechnologies.com in the Investor Relations section. This news release includes "forward-looking statements," which are statements that are not historical facts, including statements that relate to our future performance during 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 strategy including acquisitions (if any); our projected free cash flow and usage of such cash; our available liquidity; performance of the markets in which we operate; restructuring activity; our projected financial performance and targets including assumptions regarding our effective tax rate. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, the impact of the global COVID-19 pandemic on our business, our suppliers and our customers, global economic conditions taking into account the global COVID-19 pandemic, disruption and volatility in the financial markets due to the COVID-19 pandemic, the outcome of any litigation, the outcome of Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC, demand for our products and services, and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2020, as well as our subsequent reports on Form 10-Q and other SEC filings. We assume no obligation to update these forward-looking statements. This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non- GAAP financial information and reconciliation to GAAP are attached to this news release. All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders. Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit tranetechnologies.com. (See Accompanying Tables) Table 1: Condensed Consolidated Income Statement Tables 2 - 5: Reconciliation of GAAP to Non-GAAP Table 6: Condensed Consolidated Balance Sheets Table 7: Condensed Consolidated Statement of Cash Flows Table 8: Balance Sheet Metrics and Free Cash Flow *Q1 Non-GAAP measures definitions Organic revenue is defined as GAAP net revenues adjusted for the impact of currency and acquisitions. Organic bookings is defined as reported orders in the current period adjusted for the impact of currency and acquisitions. Adjusted operating income in 2021 and 2020 is defined as GAAP operating income plus restructuring costs and transformation costs. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2, 3 and 4 of the news release. Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues. Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q1 2021) less the prior period (e.g. Q1 2020), divided by the change in net revenues for the current period less the prior period. Adjusted earnings from continuing operations attributable to Trane Technologies plc (Adjusted net earnings) in 2021 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc plus restructuring costs and transformation costs, net of tax impacts. Adjusted net earnings in 2020 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc plus restructuring costs and transformation costs less the legacy legal liability adjustment, net of tax impacts plus separation-related tax adjustments. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release. Adjusted continuing EPS in 2021 is defined as GAAP continuing EPS plus restructuring costs and transformation costs, net of tax impacts. Adjusted continuing EPS in 2020 is defined as GAAP continuing EPS plus restructuring costs and transformation costs less the legacy legal liability adjustment, net of tax impacts plus separation-related tax adjustments. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release. Adjusted EBITDA in 2021 is defined as adjusted operating income plus depreciation and amortization expense plus or minus other income / (expense), net. Adjusted EBITDA in 2020 is defined as adjusted operating income plus depreciation and amortization expense plus or minus other income / (expense), net less the legacy legal liability adjustment. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 4 and 5 of the news release. Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues. Free cash flow in 2021 is defined as net cash provided by (used in) continuing operating activities, less capital expenditures, plus cash payments for restructuring costs and transformation costs. Free cash flow in 2020 is defined as net cash provided by (used in) continuing operating activities, less capital expenditures plus cash payments for restructuring and transformation costs. Please refer to the free cash flow reconciliation on table 8 of the news release. Working capital measures a firm's operating liquidity position and its overall effectiveness in managing the enterprise's current accounts. Working capital is calculated by adding net accounts and notes receivables and inventories and subtracting total current liabilities that exclude short-term debt, dividend payables and income tax payables. Working capital as a percent of revenue is calculated by dividing the working capital balance (e.g. as of March 31) by the annualized revenue for the period (e.g. reported revenues for the three months ended March 31 multiplied by 4 to annualize for a full year). Adjusted effective tax rate for 2021 is defined as the ratio of income tax expense less the net tax effect of adjustments for restructuring costs and transformation costs divided by earnings from continuing operations before income taxes plus restructuring costs and transformation costs. Adjusted effective tax rate for 2020 is defined as the ratio of income tax expense less the net tax effect of adjustments for restructuring costs, transformation costs and the legacy legal liability adjustment plus separation-related tax adjustments divided by earnings from continuing operations before income taxes plus restructuring costs and transformation costs less the legacy legal liability adjustment. This measure allows for a direct comparison of the effective tax rate between periods. The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). The following schedules provide non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP. The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies. We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations. Non-GAAP financial measures assist investors with analyzing our business results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. Presentation of these non-GAAP financial measures helps investors and management to assess the operating performance of the Company. As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results. TRANE TECHNOLOGIES PLC Condensed Consolidated Income Statement (In millions, except per share amounts) UNAUDITED For the quarter ended March 31, 2021 2020 Net revenues $ 3,017.6 $ 2,641.3 Cost of goods sold (2,064.4) (1,898.8) Selling and administrative expenses (600.0) (588.1) Operating income 353.2 154.4 Interest expense (60.7) (63.1) Other income/(expense), net (7.2) 12.5 Earnings before income taxes 285.3 103.8 Provision for income taxes (48.4) (51.0) Earnings from continuing operations 236.9 52.8 Discontinued operations, net of tax 0.9 (78.7) Net earnings (loss) 237.8 (25.9) Less: Net earnings from continuing operations attributable to noncontrolling interests (2.6) (2.8) Less: Net earnings from discontinued operations attributable to noncontrolling interests — (0.5) Net earnings (loss) attributable to Trane Technologies plc $ 235.2 $ (29.2) Amounts attributable to Trane Technologies plc ordinary shareholders: Continuing operations $ 234.3 $ 50.0 Discontinued operations 0.9 (79.2) Net earnings (loss) $ 235.2 $ (29.2) Diluted earnings (loss) per share attributable to Trane Technologies plc ordinary shareholders: Continuing operations $ 0.96 $ 0.21 Discontinued operations 0.01 (0.33) Net earnings (loss) $ 0.97 $ (0.12) Weighted-average number of common shares outstanding: Diluted 243.1 242.3 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions, except per share amounts) UNAUDITED For the quarter ended March 31, 2021 As As Reported Adjustments Adjusted Net revenues $ 3,017.6 $ — $ 3,017.6 Operating income 353.2 14.7 (a,b)

Industry	Economy	TECH	GAME
Society	Comfort	AUTO	MEDIA

WuXi Biologics Completed Three Acquisitions to Enhance its Global Network

Dominican Prime Minister Shows Solidary as India Battles Second Wave

Nexturn Bio Inc. decided to invest in the development of a new drug pipeline for diabetes treatment using miRNA

Phocas Appoints Prominent Chief Financial Officer for New Growth Cycle

China's first Consumer Products Expo opens, with Switzerland as the guest of honor

Timex Group And adidas Announce Global Licensing Agreement

Suning Announced Establishment of New Retail Development Fund with Jiangsu State-owned Assets

VolitionRx Limited Schedules First Quarter 2021 Earnings Conference Call and Business Update

KPS Capital Partners To Acquire Metra Holding S.p.A. And Metra S.p.A.

Ucommune's Wuhan Project Achieves 86.59% Occupancy Rate in Just 5 Months via Asset-light Model

Cloudbet Opens Dogecoin Casino And Adds Litecoin

China Automotive Systems to Announce Unaudited 2021 First Quarter Financial Results on May 12, 2021

Fuzhou FTZ drives development through digitization

Trane Technologies Reports Strong First-Quarter 2021 Results; Raises Full-Year Revenue and EPS Guidance

Dar Al Arkan reveals exclusive villas in Shams Ar Riyadh designed by ELIE SAAB setting new standards for premium living

Acronis, the global leader in cyber protection, received more than $250M investment at a $2.5B valuation

YourBoard Adds Partners as SME Business Expands

Base.vn - A Vietnamese SaaS Platform Startup Acquired by FPT Corporation

Revere VC Raises Seed Round In Mission To Give Venture Capital Its Vanguard Moment

Phillip Futures offers derivatives trading on Hanoi Stock Exchange via CQG platform

Revolut Doubles Down on Transparency with New Review Page and Updated Pricing

Hodlnaut Increases its Stablecoin Interest Rates, Launches New Token Swap Feature

No signs of crisis at LIQUI MOLY

Blue Prism Expands Digital Exchange to Include Huawei and Baidu as Technology Alliance Partners

Everest Medicines Receives Orphan Drug Designation from the Ministry of Food and Drug Safety in South Korea for Sacituzumab Govitecan-Hziy in Metastat

eToro signs three year deal with Rugby Australia

Media alert: The Future of Global Retirement, a report by retirement technology provider Smart