introducing resideo headline

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.

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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


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

5

(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


• 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

6

$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


7

$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


(1) Net segment revenue excluding intersegment revenue

8

$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


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


(1) Balance sheet data as of December 31, 2020; cash flow statement information for full year 2020

10

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)


$1,400 to $1,450

25.5% to 27.5%

$115 to $125

$5,500 to $5,700

26% to 29%

$500 to $550

APPENDIX

© 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)


CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED)


CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)


CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)

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