Good afternoon and and thank you

Nikolai. It's a privilege to be here.

You heard David speak about culture. You heard Lars speak about innovation.

They are certainly foundational at Otis.

But what I want to share with you today is a little bit about operational excellence and discipline.

To do that, let me provide some context on who we are.

Uh, as Shipra said, in September, we'll celebrate our 172nd anniversary of a company, a company whose founder, Elijah Otis, invented the safety break that allowed all of us to feel safe riding up and down.

It allowed cities not just to emerge, but to grow and thrive.

And here I am today to share with you how we do that as the industry leader for the past almost 172 years.

Building on a spirit of innovation, but most importantly building on operational discipline, very much discipline every day in 200 countries and territories around the world.

How do we do that?

We do that through a team of 72,000 colleagues, of which 44,000 are field professionals.

Field professionals who are out installing, but most importantly servicing our product and keeping the world moving.

2.4 billion people we touch every day.

And I can't control or train any one of them.

We have to have a quality product, a safe product because we are in the life safety business.

You trust us every time you use our product in an autonomous manner every day without thinking.

A ubiquitous product and a ubiquitous service that we don't care what the building purpose is.

It may be your residence. It may be a hospital. It may be a school. It may be an office building.

But for us, it's all about completing that journey for you safely.

Every day somewhere in the world we are doing 10,000 equipment installations.

And every day somewhere in the world we are doing 200,000 service calls.

Little higher yesterday with Spain and Portugal.

Crisis management. Crisis management.

Um, but think about what that takes in your homes, in your businesses, in your travel, in infrastructure.

to be able to repeatably provide that with a workforce of 44,000 field professionals who work independently, who represent us by wearing our our brand, our iconic brand right over their heart on their uniforms and who do this universally through the same processes and through the application of technology a little different than Elijah Otis used where we continuously innovate and disrupt ourselves but not our processes.

not our mission and that's what's important to us.

So, how do we do this?

We do this through uh a very focused business model.

You'll rep you'll recognize a flywheel.

There's probably no other industry or certainly no other business that lives this religiously every day.

We show up every morning focused.

We show up and that's everywhere in the world except sanctioned countries. We show up focus to make sure the world moves.

To do that, it's all about our service engine.

We sell new equipment to be able to secure the service for 15 or 20 years.

We then modernize that equipment because while an elevator will move up and down and an escalator will move diagonally and a moving walkway will go this way, they never leave the building.

So, we have to come back and do technology infusions.

We have to come back and replace elevators in live buildings beyond the 10,000 construction projects we're doing every day.

And we have to do that through proven processes, through independent workforces who represent us and who have to understand our purpose.

So we do innovate absolutely innovate in products and in services but we sell that new equipment we install it in buildings throughout the world and then we have the ability again to maintain it on a scheduled maintenance.

We're in a regulated industry to service it and repair it when it breaks a break fix business which we also do and then as the cycle goes to modernize it and keep it in our portfolio.

and then as the cycle goes to modernize it and keep it in our portfolio.

There are 22 million elevators and escalators in use in this world.

We service 2.4 million of those.

We are the largest service provider anywhere.

Of those 2.4 million, when we spun in April of 2020 in the midst of the pandemic and being an essential service, we were just under two million units.

We are growing at about a 100,000 units every year which had been stagnant when we were part of our former parent.

We were part of a large conglomerate where operational excellence was important but it wasn't the critical motivator where our colleagues were humbly proud but they didn't understand that it's all about the service flywheel that allows us to maintain that customer centricity that customer excellence and that ability to prove ourselves each and every day with each and every service call.

you don't think about our product and we're happy you don't think about it typically until there's an issue and then whether you're entrapped or you don't have use you think about us so now the application of technology and being more customer centric is about applying IoT we've got a million of our 2.4 4 million units connected, huge data lake, incredible AI that today allows us to do preventive maintenance.

so now the application of technology and being more customer centric is about applying IoT we've got a million of our 2.4 4 million units connected, huge data lake, incredible AI that today allows us to do preventive maintenance.

we've got a million of our 2.4 4 million units connected, huge data lake, incredible AI that today allows us to do preventive maintenance.

So we're when we're doing schedule maintenance, we can repair something before it breaks and impacts you as a customer or the riding public and that will lead to prognostics as well.

We have incredible traffic algorithms that use predictive AI, but we will balance AI with the ethics of AI because your life safety is involved.

We will use it in every part of our business because it is revolutionary, but we will also balance making sure we don't have one of our field professionals on the top of a car maintaining it and making sure you're not in it when we're doing it.

So, that's the balance that we hold.

This flywheel has provided really incredible results to date because everyone's focused on it.

We're a service company.

Of course, we're an industrial.

We have 17 manufacturing plants.

We manufacture local for local.

That's just that's just table stakes as an industrial.

But a service company and as culture, we focus on our we call them absolutes.

We don't call them values. We call them absolutes because if you don't follow them, you won't be part of our company.

First is safety.

We work at heights.

We work in buildings as you can imagine in construction as well as in service.

Everyone goes home safe every night.

Zero is the only acceptable answer for fatalities or serious incidents.

We focus on ethics because that is what has made our company a quality lasting company and we focus on quality because you depend on us for reliability and for safety.

So as we do all this the flywheel works its magic and in our business today a little over 60% of our revenue comes from service as you would imagine but over 90% of our profits.

You can think of a razor razor blade where we make money on the razor as well.

So our new equipment business is profitable but nowhere near the profit of our service business.

And you may ask, is this sustainable after 172 years?

Have you innovated enough?

How have you disrupted enough?

Does your operational cadence get you to tomorrow to 2030 to 2050?

I'm here to say yes because we consistently reinvent ourselves.

We consistently apply technology so that our mechanics will have the best technologies.

It's not a a grease and lube and and a mechanical structure anymore.

It's about the passenger experience.

It's about being customer centric and again having preventive information to help you as you go.

What we've seen is is really that incredible focus and discipline gives us our retention rate which is in the 92 to 93% level for customers.

They stay with us day after day, year after year.

And they have that choice in our contract structure.

And then when we hit about 15 or 20 years, the flywheel starts all over again because then we refurbish and modernize the equipment in a live building.

And so many other companies have to go adjacent.

Everyone has to innovate.

We don't need to do that.

We have enough organic growth in front of us.

Of the 22 million elevators in this world, over 8 million are over 20 years old and in need of refreshment, in need of potentially full full replacement.

That market will be larger than these 10,000 construction jobs we're doing every day uh before the end of the decade.

So we have organic growth in front of us in our service business which is maintenance and repair and this modernization and refurbishment business will be an evergreen opportunity because by the time we finish this cycle it'll be time for another cycle to be able to keep buildings in the asbuilt world moving.

the results since since we became independent since we became focused uh when I joined Otis in late 2017 to to turn the business to be prepare for this even though the board decision hadn't been made it was being discussed we had a few activists in the stock we were in our seventh year of no earnings growth as part of a conglomerate would never have survived as an independent company 2018 was our eighth year by 2019 19.

2018 was our eighth year by 2019 19. We turned the business.

We've got all of our colleagues focused.

We're up significantly in terms of topline, but we're steady.

We're we're not the we're not the three times growth and and we're steady.

Operational excellence provides for steady results.

Our uh our margins are up 220 basis points in the five years since we've spun.

We have had service operating profit growth in all 21 quarters and we have had operating profit growth all five years.

And you can see the results when you have discipline, a simple but elegant business model I like to call it, which everyone in the company understands and they understand our purpose.

So our mission very simply is to be a world-class customer- centric serviceoriented business.

Our vision is we give people freedom to connect and thrive in a taller, faster, smarter world.

The world is getting faster.

It's certainly getting smarter with AI.

It's certainly getting taller with urbanization as it continues.

And we are well positioned as a foundational company as a foundational disciplined industrial company, a service company to continue to provide the returns.

Over this same period, we have taken everyone, every dollar primarily that we have generated and returned $6 billion of cash to our shareholders either through dividends or share repurchases.

I'm proud of our purpose.

I'm proud of who we are and I'm proud that we touch every one of you every day of your life and keep the world moving.

Thank you very much.