Otis Worldwide (OTIS) reiterates 2022 outlook

Otis Worldwide Corporation (NYSE: OTIS) is hosting its 2022 Investor Day virtually today, beginning at 9 a.m. ET. During the event, Otis leadership will provide updates on the industry and the company's medium-term outlook, including its long-term growth strategy, margin expansion drivers and capital allocation plans. Otis' Investor Day meeting, along with the corresponding presentation, can be accessed at www.otisinvestors.com.

• Highlights medium-term outlook* with low to mid single digit organic sales growth and over 10% annualized adjusted EPS growth - Reiterates 2022 outlook* with organic sales up 2.5 to 4.5% and adjusted earnings per share up 6 to 10% with free cash flow of ~$1.6 billion - Completes targeted debt repayment and announces 2022 share repurchase plan of $300 to $500 million

"We have made significant progress on executing our long-term strategy in the two years since spin, despite macro challenges. Between 2019 and 2021, we gained two points of New Equipment share, grew our Service portfolio by 5%, expanded adjusted margins by 100 basis points and drove 35% adjusted EPS growth. We leveraged our strong free cash flow to return approximately $1.4 billion to shareholders through dividends and share repurchases, complete $135 million in bolt-on M&A and announce a tender offer for the remaining stake in Zardoya Otis," said Chair & CEO Judy Marks. "We will continue to build on this progress from a position of strength, and I'm confident in our ability to capitalize on the opportunities ahead to drive strong financial performance and create value for our shareholders, customers, colleagues and communities."

Medium-term outlook*Otis is announcing its medium-term outlook:

• Organic sales up low to mid single digits
  • Organic New Equipment sales up low single digits
  • Organic Service sales up mid single digits
• Average adjusted operating profit margin expansion of ~40 basis points annually
• Adjusted EPS CAGR of 10%+
• Free cash flow conversion between 100 to 110% of GAAP net income

*Note: When we provide outlook for organic sales, adjusted operating profit, adjusted EPS, adjusted effective tax rate and free cash flow on a forward looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financials Measures" below for additional information.

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