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, uncertainties, and other factors, which may cause the
actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking
statements. Such risks and uncertainties include, but are not limited to, (1) the duration and severity of the COVID-19 pandemic and the disruption to our
business and the global economy caused by it, including (A) its effect on the demand for our products and services, (B) its effect on our and our business
partners’ supply chains, workforce, liquidity, spending and timing for payments and disbursements, and (C) the impact of potential facility closures and the
modified working conditions at our corporate offices, Product & Solutions segment and ADI Global Distribution segment, (2) 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, (3) the likelihood of continued success of our transformation programs and initiatives, and (4) 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, 2020 and other periodic filings we make from time to time with the Securities and Exchange Commission (SEC). You are cautioned not to place undue
reliance on these forward-looking statements, such as (i) the financial outlook and targets for future periods and (ii) the impact of the COVID-19 pandemic on our
business and operations. 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.
1 © 2021 Resideo Technologies, Inc. All Rights Reserved.
2
Positive demand trends across business
‒ Q1 2021 revenue up 20% y/y
‒ Continued strength across residential markets
‒ Acceleration in commercial activity at ADI
‒ Meeting customer demand in challenging environment
Products & Solutions highlights
‒ Q1 2021 revenue grew 28% y/y
‒ Broad based growth across end markets and key channels
‒ Gross margin of 38.0%, up 410 bps y/y
‒ Gross margin benefited from higher volumes, value / cost
engineering work and lower inventory expense
‒ Operating profit up 124% y/y to $130M
Continued profitability improvement
‒ Q1 2021 gross margin of 25.9%, up 180 bps y/y
‒ Operating profit of $130M versus $34M in Q1 2020
‒ Corporate costs declined $13M y/y to $59M
‒ Operating cash flow improved by $79M y/y
‒ Limited pricing and material inflation impacts in Q1 2021
ADI Global Distribution highlights
‒ Q1 2021 revenue grew 15% y/y, Daily Sales Average up
10% y/y
‒ E-commerce growth of 60% y/y to 15% of total sales and
touchless revenue >30% of total sales
‒ Operating profit of $59M, up 23% y/y; operating margin of
7.3%, up from 6.8% in Q1 2020
© 2021 Resideo Technologies, Inc. All Rights Reserved.
3
Continued transformation work
‒ Value and cost engineering work delivering benefits
‒ Multiple sales activation efforts within Products & Solutions
‒ Indirect spend reduction program launched
‒ Back-office efficiency and rationalization projects
‒ EMEA footprint optimization at ADI delivering to plan
Products & Solutions strategy work
‒ Completed comprehensive strategic review and planning
process resulting in eight strategic pillars
‒ Projects on sales force optimization, salesforce.com
unification and website consolidation
‒ Unified residential new construction initiative with early
customer wins
ADI executing on acquisition strategy
‒ Completed Norfolk acquisition, U.S. regional distributor of
data comms products; increases presence in mid-Atlantic
‒ On May 5, closed acquisition of Shoreview, U.S. distributor
of Pro AV products with strong brands and customer base
that compliment existing Herman Pro AV business
‒ Continuing to build out already robust M&A pipeline
Freight, logistics and supply chain update
‒ Freight costs up $13M y/y
‒ Ocean freight remains backlogged, increased expediting
‒ Supply of certain components (resins, microchips) remains
constrained
‒ Able to meet strong customer demand during Q1 and
seeing opportunity to pick up new / additional business
© 2021 Resideo Technologies, Inc. All Rights Reserved.
4 © 2021 Resideo Technologies, Inc. All Rights Reserved.
Distributors OEMsUtilities /
InsuranceRetail Builders
Protect the Base
Business
Customer-Centric in
All We Do
Reposition for
Growth
Build an
Inspired
Culture
Simplify OperationsAchieve R&D Agility / Focus on
Breakthrough Innovation
Put Humans at the Center of our Experience
Win in Growth
Segments with
Differentiated Solutions
Make
“Behind the Wall”
Simple and Smart
Embrace the
Pro while Expanding
Channels
Extend Geographic
Footprint
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(1) Net segment revenue excluding intersegment revenue
($ in millions, except per share) Q1 2021 Q1 2020 % change Y/Y
Net Revenue 1,419 1,179 +20%
P&S Revenue (1) 606 475 +28%
ADI Revenue 813 704 +15%
Gross Margin 25.9% 24.1% +180 bps
P&S Gross Margin 38.0% 33.9% +410 bps
ADI Gross Margin 17.2% 17.9% -70 bps
SG&A 238 250 -5%
Operating Profit 130 34 +282%
P&S Operating Profit 130 58 +124%
ADI Operating Profit 59 48 +23%
Corporate Costs (59) (72) -18%
Net Income (Loss) 49 (21) NA
EPS – Diluted 0.33 (0.17) NA
© 2021 Resideo Technologies, Inc. All Rights Reserved.
• Higher volumes drove revenue
with strong demand across
residential end markets
• Gross margin expansion on
volume growth and engineering
and supply chain productivity
improvements
• Headwinds from higher freight
costs, up $13M y/y
• Incremental investments of ~$10M
y/y across organization
• Corporate costs down due to
ongoing transformation work and
~$20M y/y reduction in
restructuring and spin costs
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$0
$500
$1,000
$1,500
$2,000
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Revenue
($50)
$0
$50
$100
$150
$200
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Operating Profit (Loss)
($100)
($50)
$0
$50
$100
$150
$200
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q12021
Operating Cash Flow
0%
10%
20%
30%
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Gross Margin+20%
+282%
+180
bps$M
$M $M
© 2021 Resideo Technologies, Inc. All Rights Reserved.
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$0
$200
$400
$600
$800
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
P&S Revenue (1)
$0
$50
$100
$150
$200
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
P&S Operating Profit
0%
10%
20%
30%
40%
50%
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
P&S Gross Margin+28%
+124%
+410
bps$M
$M
• Growth across all core markets,
led by security and trade channels
• Freight added $12M to COGS y/y
with ~80% of this related to higher
costs (~20% volume)
• Progress in value / cost
engineering initiatives with ~$8M
y/y savings
• Limited impact from pricing in Q1;
implemented price increases in
North America in April / May with
plans for H2 in EMEA
• Operating expense down y/y on
transformation and COVID related
savings
© 2021 Resideo Technologies, Inc. All Rights Reserved.
(1) Net segment revenue excluding intersegment revenue
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$0
$200
$400
$600
$800
$1,000
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
ADI Revenue
$0
$20
$40
$60
$80
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
ADI Operating Profit
15%
16%
17%
18%
19%
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
ADI Gross Margin+15%
+23%
-70
bps$M
$M
• Daily Sales Average growth of
10% y/y
• Residential categories, led by
intrusion, remain strong and
commercial activity accelerating
• Growth in e-commerce of 60% y/y,
accounting for 15% of total sales
• Touchless revenue now >30% of
total sales mix
• Gross margin impacted by lower
vendor rebates relative to Q1 2020
and less favorable mix in EMEA
• Good cost leverage drove higher
operating margin and supported
$3.5M of incremental investment
© 2021 Resideo Technologies, Inc. All Rights Reserved.
9
($ in millions) Q1 2021 Q1 2020 FY 2020 (1)
Cash and cash equivalents 508 338 517
Total debt 1,196 1,531 1,162
Accounts receivable, net 875 820 863
Inventories 681 671 672
Accounts payable 908 906 936
Cash provided by (used for) operating
activities5 (74) 244
Cash capital expenditures 19 16 70
© 2021 Resideo Technologies, Inc. All Rights Reserved.
(1) Balance sheet data as of December 31, 2020; cash flow statement information for full year 2020
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Revenue
Gross margin
Operating profit
(1) Honeywell reimbursement agreement payments have limited tax deductibility; implied income statement tax rate likely will exceed effective rate
Additional items
Corporate costs ~$235
Stock-based comp ~$45
D&A ~$95
Capital expenditures ~$90
Interest expense ~$50
Effective tax rate mid-20s (1)
Avg. diluted shares ~148M
($ in millions)
$5,200 to $5,400
26% to 28%
$450 to $500
Corporate costs ~$225
Capital expenditures ~$90
Interest expense ~$47
Effective tax rate mid-20s (1)
© 2021 Resideo Technologies, Inc. All Rights Reserved.
$1,400 to $1,450
25.5% to 27.5%
$115 to $125
$5,500 to $5,700
26% to 29%
$500 to $550
© 2021 Resideo Technologies, Inc. All Rights Reserved.12
SUMMARY OF INTERIM FINANCIAL RESULTS (UNAUDITED)
(1) Represents Product & Solutions revenue, excluding intersegment revenue of $94 million for the three months ended April 3, 2021 and $84 million for the three
months ended March 28, 2020. ADI Global Distribution does not have any intersegment revenue.
(In millions)
© 2021 Resideo Technologies, Inc. All Rights Reserved.13
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED)
© 2021 Resideo Technologies, Inc. All Rights Reserved.14
CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)