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1-3 Brief Analogies for Otis Worldwide (OTIS):

• The Carrier Global for vertical transportation.
• The Caterpillar for moving people and goods within buildings.

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Otis Worldwide (OTIS) Major Products

• New Equipment: Design, manufacture, sale, and installation of a wide range of elevators, escalators, and moving walkways for commercial and residential buildings.
• Service & Maintenance: Comprehensive maintenance, repair, and monitoring services for new and existing elevators, escalators, and moving walkways to ensure safe and reliable operation.
• Modernization: Upgrading existing elevators and escalators with new technology, components, and design features to enhance safety, performance, energy efficiency, and aesthetics.

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Otis Worldwide (OTIS) Major Customers

• Real Estate Developers & Building Owners: These are companies and entities that plan, finance, construct, and manage residential, commercial (e.g., office buildings, hotels, retail), and mixed-use properties. They purchase new equipment for their developments and rely on Otis for ongoing maintenance, modernization, and service contracts for existing units. Examples of the types of public companies in this sector that could be customers (though not specifically named major customers by Otis) include large REITs or real estate development firms.
• General Contractors & Construction Companies: Firms responsible for the overall execution of large-scale building projects frequently procure and install Otis equipment as part of their broader construction contracts. These companies work on behalf of the developers or owners.
• Property Management Companies & Facility Managers: These organizations oversee the day-to-day operations and maintenance of buildings and often enter into long-term service agreements with Otis to ensure the safe and efficient functioning of elevators and escalators within their managed properties.
• Government & Public Sector Entities: Otis provides equipment and services for various public infrastructure projects, including airports, subways, train stations, hospitals, and government buildings. These customers include municipal, state, and national government agencies or their appointed contractors.

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Judy Marks, Chair, Chief Executive Officer and President

Judy Marks has over 40 years of industry experience, actively leading technological and business advancements globally. She led the successful spin-off of Otis to an independent publicly traded company on the NYSE in April 2020 and was named Chair in February 2022. Prior to Otis, she held senior leadership roles at IBM, Lockheed Martin, and Siemens AG, where she served as CEO of both Siemens USA and Dresser-Rand, a Siemens business.

Cristina Méndez, Executive Vice President & Chief Financial Officer

Cristina Méndez was appointed Executive Vice President & Chief Financial Officer of Otis, effective August 23, 2024. She joined Otis in 2022, having previously served as Senior Vice President, Finance EMEA & Transformation for the company's Europe, Middle East & Africa region, focusing on financial planning and analysis, mergers & acquisitions, and transformation activities. Before joining Otis, Méndez spent over 15 years in the global telecommunications industry as a senior Finance executive, primarily at Telefonica Group, where she was responsible for strategic and financial planning, including as Senior Vice President, Director Controlling of Telefonica Deutschland.

Nora LaFreniere, Executive Vice President & General Counsel

Nora LaFreniere is the Executive Vice President & General Counsel for Otis, responsible for the global legal, compliance, business development, intellectual property, security, government relations, quality, and environmental, health, and safety functions. She has spent two decades with Otis and its former parent company, United Technologies Corporation (UTC). Her previous roles include Assistant Counsel for Otis North and South America, and later Vice President and General Counsel for both UTC Building & Industrial Systems and UTC Climate Controls & Security.

Enrique Miñarro Viseras, President, Otis Europe, Middle East & Africa and Latin America

Enrique Miñarro Viseras is the President of Otis Europe, Middle East & Africa and Latin America, overseeing all aspects of the new equipment and service businesses in the region. He brings two decades of global, commercial, operational, and P&L management experience. Before joining Otis, Miñarro Viseras held leadership roles at Ingersoll Rand (formerly Gardner Denver) and Emerson, where he was responsible for global and regional P&Ls.

Stéphane de Montlivault, President, Otis Asia Pacific

Stéphane de Montlivault serves as the President of Otis Asia Pacific, responsible for all Otis business in the Asia Pacific region, excluding China. He joined Otis in 2015. His career at Otis began in North America in 1984, holding various positions in sales, procurement strategy, and finance before relocating to Singapore in 1989 to manage financial planning and analysis for Pacific Asia Operations. He has since held numerous country and regional leadership positions across the North and South Asia regions.

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The key risks to Otis Worldwide (OTIS) include:

1. Dependence on the Construction Cycle and Weakness in China: Otis Worldwide's performance is closely tied to the global construction cycle, particularly affecting its New Equipment segment. Persistent weakness in the China market, including specific liquidity issues in its property sector, is a significant headwind, leading to reduced demand for new installations and impacting overall growth and profitability. Otis projects a decline in organic New Equipment sales by approximately 7% for the full year 2025, largely due to this softness in China.
2. Economic Uncertainty and Market Risks from International Operations: Otis operates in a global market, with a significant portion of its net sales derived from international operations (approximately 70% in 2024). This exposes the company to various economic uncertainties and market risks, such as fluctuating interest rates, commodity prices, currency exchange rates, and potential political instability in countries where it operates. Rising operational costs can also squeeze margins if not managed effectively.
3. Competitive Pressure and Technological Disruption: The elevator and escalator industry is highly competitive, with several major players vying for market share. Otis must continuously innovate to maintain its competitive edge, as emerging technologies and new market entrants have the potential to disrupt the existing market dynamics.

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Otis Worldwide (symbol: OTIS) operates within the global elevator and escalator industry, which encompasses new equipment, maintenance, and modernization services. The overall addressable market for elevators and escalators is substantial and continues to grow.

• Global Elevator and Escalator Market: The global elevator and escalator industry was valued at approximately $85 billion in 2023 and is projected to reach $110 billion by 2028, exhibiting a Compound Annual Growth Rate (CAGR) of 5.2%. Other estimates place the global market size at USD 79.06 billion in 2024, projected to reach USD 116.14 billion by 2030 with a CAGR of 6.7% from 2025 to 2030. Another report valued the market at USD 161.73 billion in 2024 and forecasts it to reach USD 244.27 billion by 2033, with a CAGR of 4.64% from 2025-2033.

• New Equipment: The global market for new elevator and escalator installations is projected to exceed EUR 30 billion (approximately US$34.76 billion) by 2030, up from an estimated EUR 25 billion (approximately US$28.97 billion) in 2020. In 2024, the new equipment business segment accounted for 47.7% of the global revenue share within the elevators market.

• Service (Maintenance, Repair, and Modernization): The global elevator maintenance market was valued at USD 33.45 billion in 2024 and is projected to grow to USD 61.12 billion by 2032, at a CAGR of 8.0%. Another estimate for the global elevator repair and maintenance service market valued it at approximately USD 50 billion in 2023, with a projection to reach USD 85 billion by 2033. The maintenance segment accounted for over half of the total elevator and escalator market value in 2020. Modernization sales specifically increased from $1.35 billion in 2019 to $1.53 billion in 2023 globally.

Regional Market Sizes:

• Asia Pacific: This region is a dominant force in the market, holding over 63.6% of the global elevator and escalator market share in 2024. The Asia Pacific market accounted for 41.5% of the global elevator market share in 2024. It also dominated the global elevator maintenance market with a 44.04% share in 2024.

• North America: The North America elevators market represented 12.7% of the global elevator market share in 2024. The U.S. market alone was valued at USD 13 billion in 2024.

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Otis Worldwide (OTIS) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and market dynamics:

1. Expansion of the Service Portfolio (Maintenance and Repair): Otis consistently emphasizes its service-driven business model, with the maintenance and repair portfolio being a primary and stable revenue generator. The company reported a 4% increase in maintenance portfolio units in Q3 2025, reaching approximately 2.4 million units, and organic service sales grew 6% in the same quarter. This expanding installed base provides a recurring revenue stream and is a key focus for sustained growth.
2. Growth in Modernization Sales: Modernization services are a significant growth driver, addressing the demand for upgrading and replacing aging elevator and escalator systems. Otis reported a 14% organic sales growth in modernization in Q3 2025 and a 27% increase in modernization orders at constant currency, with backlog up 22%. This trend is expected to continue as infrastructure ages and regulations evolve.
3. New Equipment Sales Growth (outside of China): While the New Equipment market in China faces headwinds, Otis is experiencing growth in other regions. New Equipment orders, excluding China, were up 7% in Q3 2025 at constant currency. The company aims for flat to low-single-digit organic New Equipment sales growth in its medium-term outlook.
4. Digital Transformation and Service Enhancements: Otis is investing in digital solutions to enhance service efficiency and customer experience. This includes connecting a larger portion of its global units and leveraging technology to improve productivity and expand subscription sales, ultimately increasing the stickiness and conversion rates within its service offerings.
5. Strategic Geographic Expansion (focusing on high-growth markets beyond China): Otis is strategically expanding its presence in high-growth markets, particularly in Asia Pacific, to offset challenges in the China New Equipment market. The company anticipates strong growth in Asia Pacific, helping to partially offset declines in China for its New Equipment segment.

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Share Repurchases

• Otis Worldwide's Board of Directors authorized a new $2 billion share repurchase program, effective January 16, 2025, which replaced a prior program with approximately $100 million remaining.
• In 2024, the company completed $1.0 billion in share repurchases.
• As of Q3 2025 year-to-date, Otis Worldwide had approximately $800 million in share repurchases.

Outbound Investments

• In early 2022, Otis acquired the remaining 49.98% stake in its Spanish subsidiary Otis Zardoya for a net cash outflow of $1.80 billion.
• In 2024, Otis deployed $87 million for approximately 30 targeted bolt-on acquisitions, including Jardine Schindler Lifts Limited in Taiwan.
• In April 2025, Otis acquired eight of eleven Urban Elevator locations in the U.S. to enhance its service capabilities.

Capital Expenditures

• For the full year 2024, Otis Worldwide's capital expenditures were approximately $87 million.
• Year-to-date as of Q3 2025, capital expenditures totaled approximately $176 million.
• The company generally aims for capital expenditures between 1.1% and 1.3% of sales, with a focus on supporting its service-driven business model and digital initiatives like Otis ONE for productivity improvements.