#1Goldman Sachs Industrials & Materials Conference May 15, 2019 IR Ingersoll Rand Inspiring Progress™#2Safe Harbor This presentation includes "forward-looking statements" which are statements that are not historical facts, including statements that relate to the proposed transaction between Gardner Denver Holdings, Inc. and the Company; the mix of and demand for our products; performance of the markets in which we operate; our share repurchase program including the amount of shares to be repurchased and timing of such repurchases; our capital allocation strategy including projected acquisitions; restructuring activity; supplier disruption and our expectations for resolving the disruption; our projected 2019 full-year financial performance and our projected 2017 to 2020 financial performance and targets including assumptions regarding our effective tax rate and other factors described in our guidance. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, the factors outlined in our presentation and webcast regarding the proposed transaction, global economic conditions, the outcome of any litigation, demand for our products and services, and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2018, as well as our subsequent reports on Form 10-Q and other SEC filings. We assume no obligation to update these forward-looking statements. This presentation also includes non-GAAP financial information which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information are included as an appendix in our presentation and reconciliations can be found in our earnings releases for the relevant periods located on our website at www.ingersollrand.com. All data beyond the first quarter of 2019 are estimates. R) Ingersoll Rand. 2#3A Global Leader in Energy Efficiency and Productivity Two Segments (Revenues 2018) Key Metrics Manufacturing locations worldwide 52 Employees ~49,000 Industrial $3.3B $12.4B Climate Market cap ~$25B # of countries we sell products 100+ R Ingersoll Rand. 3#4Diversified Business With High Aftermarket Mix Segment Distribution Industrial R Ingersoll Rand. $15.7B Climate Regional Mix Revenue Streams 4% Latin America 13% Asia Pacific 33% Parts and Services Europe, Middle 15% East, Africa 68% North America 67% Equipment All figures are FY 2018. 4#5Leading Brands and Market Positions Commercial HVAC TRANE® World leader in HVAC Industrial and Process R Ingersoll Rand. • Leader in compression technologies, specialty tools & material handling R Ingersoll Rand. Residential HVAC American Standard HEATING & AIR CONDITIONING • Leader in heating and air conditioning solutions Fluid Handling ARO® • World leader in reliable fluid handling equipment Transport Refrigeration THERMO KING • World leader in refrigerated transportation Golf and Utility Vehicles Club Car • A world leader in small electric vehicles LO 5#6Climate Segment: Diversified and Resilient Performance Segment Mix Regional Mix Transport Refrigeration $12.4B Residential HVAC Revenue Streams 4% Latin America Commercial HVAC 10% Asia Pacific 32% Parts and Services Equipment 15% Europe, Middle East, Africa Commercial HVAC Service R Ingersoll Rand. • Parts & Contracting 71% North America 68% Equipment High and growing recurring revenue streams – services / parts - Balanced mix of services, energy services, connected buildings, residential and transport solutions All figures are FY 2018. 6#7Industrial Segment: Diversified and Resilient Performance Business Units Regional Mix Revenue Streams 3% India Small Electric 4% Latin America Vehicles Industrial Comp. 17% Europe, ME, Africa 39% Parts and Service 21% Asia Pacific $3.3B Industrial Products1 Engineered Comp. 61% Equipment 55% North America Parts & Service Compression Technologies & Services 7 R Ingersoll Rand. 1. Industrial Products includes Power Tools, Fluid Management, and Material Handling. All figures are FY 2018.#8Robust Financial Model Drives Powerful Cash Flow (2014-2018) 1. Attractive, diversified end markets 2. Leading brands, market positions $5.7 billion - outgrowing market rates. free cash flow over the last 5 years 3. Focused on margin expansion (growth / op. excellence) 5. Investing for growth and profitability R Ingersoll Rand. 4. Delivering powerful free cash flow * Includes certain Non-GAAP financial measures. See the company's website for additional details and reconciliations. 8#9Driving Sustained Growth and Operating Margin Improvement Revenue Adjusted Continuing EPS In Billions $16 $6.00 $15 5% CAGR $5.00 14% CAGR $14 $4.00 $13 $3.00 $12 $2.00 $11 $1.00 $10 $0.00 2014 2015 2016 2017 2018 Cumulative Free Cash Flow In Billions 1 2014 2015 2016 2017 2018 Adjusted Operating Margin $6 $5.7 Avg. FCF % of Adj. NI = 102% $5 $4.5 14% +1.8 Ppts $4 $3.1 12% $3 $1.8 $2 10% $0.8 $1 $- 8% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 R Ingersoll Rand. * Includes certain Non-GAAP financial measures. See the company's website for additional details and reconciliations. * 2016 Adj Op Margin retrospectively restated for the adoption of accounting standard ASU 2017-07 on January 1, 2017. Non-service pension costs that were previously reported in COGS and SG&A expense are now reported in other income/expense, net. This has no net impact to EPS. 2014 and 2015 Adj Op Margin was not restated. 6#10Dynamic and Balanced Capital Deployment Focused on Maximizing Shareholder Value (2014 – 2018) $8.3 Billion Capital Expenditures ~$1.3B Capex R) Ingersoll Rand. TR Air Conditioning, Heating and Energy Management Dividends ~$1.8B dividends paid ~20% CAGR dividend per share Long history of growing ALI THE UNITED STATES OF A E3422. dividend $3.8B Share Buyback ~54 million shares repurchased • E34112707 34112707E E 34112 5 xxx ONE DOLLAR 5 E geus 112707E RICA 709 40% +0.01% 100%% 5,0 -2.0394 -0.01% o 20.09% 2.06 F09% ● Mergers & Acquisitions ~$1.4B on 22 acquisitions 10#11Ingersoll Rand 2020 Targets* R Ingersoll Rand. Revenue Growth Adjusted Operating Margins Adjusted Continuing EPS Growth Year-End 2017 to 2020 Targets ~4% to ~4.5% CAGR ~14.5% to ~15% in 2020 ~11% to -13% CAGR Based on ~22% tax rate Free Cash Flow (% Net Income) Balanced Cap Deployment of Excess Cash Competitive and Growing Dividend - Share buyback - M&A * >=1.0 times ~100% of FCF on avg. Includes certain Non-GAAP financial measures. See the company's website for additional details and reconciliations. Information from May 2017 Ingersoll Rand Analyst Day --- NOT AN UPDATE OR REAFFIRMATION 11#12Consistent Strategy Execution Delivers Profitable Growth and Powerful Cash Flow 1. Sustained Growth Nexus of sustainability and energy efficiency global megatrends + 2. Operational Excellence Margin improvement and powerful cash flow 3. Dynamic Capital Allocation 4. Winning Culture Commitment to Reinvestment, dividends, + share repurchase and acquisitions + integrity, ingenuity and engagement Sustainable growth above GDP Strong operating system and sustainable culture Powerful cash flow and balanced capital allocation Stable and recurring free cash flow: $5.7B past 5 Years R Ingersoll Rand. 12 * Includes certain Non-GAAP financial measures. See the company's website for additional details and reconciliations.#13Global Mega Trends Play to Our Strengths • Global Mega Trends Climate change Urbanization Natural resource scarcity Digital connectedness and technologies R) Ingersoll Rand. Ingersoll Rand R907 . Our Strengths Reduce energy demand and greenhouse gas emissions Improve efficiency in: - Buildings - – Industrial processes - Transportation 13#14Significant Ongoing Business Investments Support Growth and Profitability Business Investments ~20% CAGR Key Examples • ~90 major new products / services throughout the world in 2018 • New low-global warming potential refrigerants • Digital / controls / wireless technology • Channel expansion . Parts and services capabilities / offerings. • Sales and services capabilities • Operational excellence initiatives R Ingersoll Rand. 2014 2018 14#15Growth and Profitability Opportunities from Ongoing Business Investments Subset of Incremental Opportunities Contributing to 2020 Targets* Climate Industrial ~$200M TRANE ~$400M Seat Egy Series ~$300M TriPac ~$100M Variable Refrigerant Flow Energy Services Digital Customer Experience Auxiliary Power Unit ~$40M Operating Income ~$100M ~$175M ~$90M Engineered to Order Personal Transportation Compression Tech Services Industrial Products R Ingersoll Rand. Information from May 2017 Ingersoll Rand Analyst Day --- NOT AN UPDATE OR REAFFIRMATION 15#16Business Operating System Delivers Results 1 Drive innovation and productivity 2 Proven & unique system to accelerate profitable growth GROWTH & ERATIONAL 3 Committed to sustainability and energy efficiency 4 Focus on employee engagement B Ingersoll Rand. EXCELLENCE R Ingersoll Rand. 16#17Widely Recognized for Global Citizenship, Sustainability, Diversity and Inclusion and Employee Engagement Sustainability Diversity and Inclusion Citizenship קון PARADIGM FOR PARITY FORTUNE WORLD'S MOST FTSE4Good FTSE4Good Index Series for 5th consecutive year The Magazine for Clean Capitalism Corporate Knights Global 100 Most Sustainable Corporations 2nd consecutive year A Call to Action and Model for Gender Equality 1st in our Industry to sign onto Paradigm for Parity ADMIRED COMPANIES 2019 Fortune World's Most Admired list for 7th year MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM 2018 Dow Jones Sustainability World and North America for 8th consecutive year THE CITIZENS 19TH ANNUAL CORPORATE CITIZENSHIP AWARDS 2018 WINNER U.S Chamber of Commerce 2018 Corporate Citizenship Award Winner for Best Environmental Stewardship TOP 100 COMPANY 2018 Thomson Reuters Diversity & Inclusion Index CEO ACT!ON FOR DIVERSITY & INCLUSION Employee Engagement Top Quartile in Manufacturing Industry for 5th consecutive year R Ingersoll Rand. 17#18First-Quarter 2019 Results April 30, 2019 IR Ingersoll Rand Inspiring Progress™#19Executing a Consistent Strategy that Delivers Profitable Growth 1. Sustained Growth Nexus of sustainability and energy efficiency global megatrends + 2. Operational Excellence Margin improvement 3. Dynamic Capital Allocation and powerful cash flow + share repurchase and Reinvestment, dividends, + acquisitions 4. Winning Culture Commitment to integrity, ingenuity and engagement Sustainable growth above GDP Strong operating system and sustainable culture Powerful cash flow and balanced capital allocation This morning we announced a transaction to separate our Industrial businesses by way of a spin-off to Ingersoll Rand's shareholders and then combining it w/ Gardner Denver, creating a leading, global industrial company. Also announced creation of a premier, pure- play climate control business. IR Ingersoll Rand. The related press release, presentation and webcast are available on www.ingersollrand.com. Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION 19#20· First Quarter 2019 Summary: Strong Start to the Year Top-tier EPS growth driven by solid execution - Adj. cont. EPS up 27% yoy Robust revenue growth led by Climate segment despite tough yoy comps - Enterprise organic rev up 8% against 8% PY growth; Climate up 10% vs. 8% comp, Industrial up 3% vs. 9% comp Strong underlying bookings growth in most major businesses CHVAC N.A., Europe, Res HVAC and Compression Tech N.A. organic bookings all up MSD to HSD 105% book to bill drove record backlog in Q1 2019 Transport bookings significantly lower yoy, as expected, negatively impacting overall Climate / Enterprise bookings 2018 was an extraordinary year; 1.5 years of N.A. trailer and 2 years of APU booked in 2018 Transport backlog sufficient to meet 2019 targets; booking into 2020 Effectively managing inflation and tariff headwinds; 90 bps adj. op. margin expansion - 70 bps positive price versus cost - Operating leverage of 26% in-line with full year expectations Europe, China markets largely as expected with trade, Brexit uncertainty Continue to closely monitor Dynamic Capital Allocation ~$380M in dividends and share repurchases Exiting the quarter, remain bullish on strategy, end markets and execution Increasing EPS guidance to high end of prior range ~$6.35 from ~$6.15 to -$6.35 R Ingersoll Rand. Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION * Includes certain Non-GAAP financial measures. See the company's Q1 2019 earnings release for additional details and reconciliations. 20 20#21Solid Organic Revenue Growth Continues in Both Segments and Across Business Units; Backlog at Record High Q1 Organic* Y-O-Y Change Bookings Commercial HVAC - North America - Latin America - Europe MEA - Asia Residential HVAC Transport Climate Compression Technologies Industrial Products Small Electric Vehicles Revenue + + + + + + + + + + + + - 3% + 10% + + + + + Industrial +1% + 3% Enterprise - 2% + 8% (B) Ingersoll Rand. *Organic bookings and organic revenues exclude acquisitions and currency Climate • Robust, broad based rev growth against tough yoy comp (+8% Q1 '18) Strong HVAC bookings growth - N.A., Europe and Res; all up MSD to HSD Transport bookings down significantly on 2018 extraordinary backlog build; N.A. trailer 1.5x, APU 2x Industrial • Healthy, balanced rev growth against tough yoy comp (+9% Q1 '18) Strong N.A. Compression Tech organic order growth, +MSD • Small Elec. Veh. bookings flat-ish, Industrial Products soft in Asia 21#22Healthy End Markets - No Significant Change to Expectations Commercial HVAC Residential HVAC Transport . Major CHVAC markets remain positive – cont'd solid bookings and revenue growth - N.A. and Europe growth strong, outlook remains healthy China demand strengthened throughout qtr, flat-ish growth against tough prior year comps 2019 CHVAC global outlook strength continues w/ LSD - MSD mkt growth expected; key economic indicators remain broadly supportive • HSD order growth; LSD revenue growth against tough compares (low-teens) in Q1 '18 Entering cooling season, solid demand outlook led by replacement market • Economic indicators point to cont'd healthy mkts in Resi in 2019; LSD - MSD mkt growth ⚫ Global Transport business diversified and resilient across trailer, truck, APU, aftermarket Transport backlog remains very high; sufficient backlog to meet growth objectives in 2019 . • N.A. mkt remains strong; healthy outlook into 2020 European transport markets soft as expected, closely monitoring; Brexit uncertainty • LSD - MSD mkt revenue growth expected in 2019 (B) Ingersoll Rand. Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION 22 22#23Healthy End Markets - No Significant Change to Expectations Compression Technologies Global mkts mixed w/ solid Q1 growth in equip / svcs; cont'd strength in N.A. mkts EMEA flat-ish, consistent w/ expectations for a softer mkt in 2019 China flat-ish; demand strengthened throughout qtr; cautiously optimistic outlook for 2019 Overall, expect LSD - MSD mkt growth in 2019; closely monitoring key markets ● Small Electric Vehicles & Industrial Products Balanced revenue growth across Industrial Products (Fluid Mgmt, Tools, Mat'l Handling) and Small Electric Vehicles • 2019 outlook supports sustained growth R Ingersoll Rand. Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION 23 23#24Q1 Results Deliver Strong Start to 2019 • • Strong operating results - - Adjusted continuing EPS of $0.89, up 27% year over year driven by strong performance in Climate Early stages, but confident in raising adj. cont. EPS guidance from $6.15 - $6.35 to ~$6.35 Solid Q1 organic revenue growth in both segments; 105% book to bill - - - - Broad-based organic revenue growth in Climate, up 10%; Strong HVAC organic bookings led by N.A. / Eur / Res Industrial organic revenues up 3%, building on 9% growth in Q1 2018 Healthy demand in most major end-markets driving record backlog Working capital levels support cont'd expected growth during cooling season; FY 2019 FCF targets unchanged Operational excellence delivering 26% leverage and solid margin improvement - Enterprise adj. operating margins up 90 bps Cont'd effective mgmt of material/oth. infl. and tariff-related costs; price / cost + 70 bps. Continued balanced capital allocation R Ingersoll Rand. * - Paid $128M in dividends; annualized dividend payout of $2.12 / share; ~2% dividend yield. Repurchased $250M or 2.4M shares PFS offer accepted by seller, regulatory approval expected mid-year 2019 Note: Information as of April 30, 2019 - --- NOT AN UPDATE OR REAFFIRMATION Includes certain Non-GAAP financial measures. See the company's Q1 2019 earnings release for additional details and reconciliations. 24 24#25Adj. Continuing EPS* ENTERPRISE Q1 2019 Continued Strong Revenue Growth, Margin Expansion and EPS Growth Net Revenue +8% Organic $3,576 Adj. Operating Margin* +90 bps 9.4% $3,385 +6% Q1 '18 Q1 '19 8.5% Q1 '18 Q1 '19 Highlights $0.70 +27% $0.89 Q1 '18 Q1 '19 Strong organic revenue growth across all businesses, in virtually all products and geographies Adj. operating margins expanded on strong price realization, effectively managing inflation & tariff-related headwinds. Achieved Q1 leverage of 26%, in line with full year target Revenue growth offset by ~2% negative FX impact R Ingersoll Rand. * Includes certain Non-GAAP financial measures. See the company's Q1 2019 earnings release for additional details and reconciliations. 25#26ENTERPRISE Strong Climate Performance Driving Adj. Cont. EPS +27% +$0.19 $0.17 $0.00 ($0.01) $0.70 Q1 2018 Adjusted Continuing EPS* Climate Industrial ($0.01) Corp Cost ($0.05) Oth Exp $0.02 Interest $0.03 Tax rate Highlights $0.03 $0.89 Other Share Count Q1 2019 Adjusted Continuing EPS* Strong performance in Climate. Industrial solid w/ margins negatively impacted by a temporary supplier disruption in Small Electric Vehicles (~$4M); excl. disruption Industrial margins +50 bps. FY 2019 Industrial margin outlook intact Other expenses $15M higher primarily due to pension costs and a legal settlement related to a legacy business Lower share count driven by $1.15B of share repurchases in 2018 / Q1 2019 R Ingersoll Rand. Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION * Includes certain Non-GAAP financial measures. See the company's Q1 2019 earnings release for additional details and reconciliations. 26#27ENTERPRISE Strong Price vs Material Inflation, Volume and Productivity vs Other Inflation Spreads Driving 90 bps Margin Expansion 0.7 8.5% 0.2 +90 bps 0.5 (0.5) 9.4% Q1 2018 Adjusted Operating Margin* Vol/ Mix/FX/ Acq Price / Material Inflation Productivity / Other Investment / Other Inflation Q1 2019 Adjusted Operating Margin* Highlights • • Strong price & effective mgmt of mat'l inflation & tariff-related costs drove 70 bps margin improvement Productivity exceeded other inflation (wages, logistics, etc.) consistent with full year expectations Ongoing business reinvestment in growth and operational excellence of ~50 bps R Ingersoll Rand. * Includes certain Non-GAAP financial measures. See the company's Q1 2019 earnings release for additional details and reconciliations. 27#28CLIMATE SEGMENT Q1 Continued Strong Revenue Growth and Significant Margin Improvement Net Revenue +10% $2,610 Organic $2,804 Adj. Operating Margin* +130 bps Adj. EBITDA %** +70 bps 11.4% 13.2% 12.5% +7% Q1 '18 Q1 '19 10.1% Q1 '18 Q1 '19 Highlights Q1 '18 Q1 '19 Continued exceptional, broad based organic rev growth across virtually all regions / business units / products Strong price realization, volume growth, and productivity driving significant margin expansion Adj. EBITDA % partially offset by pension costs, FX and a legal settlement related to a legacy business R Ingersoll Rand. * Adjusted operating margin excludes restructuring in 2018 and 2019. See tables in news release for additional information. ** Adjusted EBITDA divided by revenue. This excludes restructuring in 2018 and 2019. See tables in news release for additional information. 28 28#29INDUSTRIAL SEGMENT Q1 Solid Organic Revenue Growth Against Tough Compares (PY +9%) Net Revenue +3% $775 Organic Adj. Operating Margin* 12.3% $772 flat Adj. EBITDA %** -50 bps 14.9% 12.3% 14.4% flat Q1 '18 Q1 '19 Q1 '18 Q1 '19 Q1 '18 Q1 '19 Highlights • • Balanced revenue growth across Compression Tech, Industrial Products and Small Electric Vehicles Industrial margins negatively impacted by a temporary supplier disruption in Small Elec. Veh. (~$4M); excl. supplier disruption Industrial margins +50 bps, expect resolution during Q2 . FY 2019 Industrial margin outlook intact w/ footprint optimization benefits ramping in late 2019 R Ingersoll Rand. * Adjusted operating margin excludes restructuring in 2018 and 2019. See tables in news release for additional information. ** Adjusted EBITDA divided by revenue. This excludes restructuring in 2018 and 2019. See tables in news release for additional information. 29 29#30Continued Execution of Balanced Capital Allocation Strategy • Strengthen the core business and extend product & market leadership Invest in new technology and innovation 1 • Invest for Growth • Strategic acquisitions - pipeline remains active • Secured $1.5B of financing primarily to fund pending PFS acquisition 2 Maintain Healthy, Efficient Balance Sheet • 3 Return Capital to Shareholders • R Ingersoll Rand. • • Drive FCF conversion of greater than 100% of adjusted net income Strengthening balance sheet Strong BBB investment grade rating offers optionality as markets evolve • Expect to consistently deploy 100% of excess cash over time Paid $128M in dividends in Q1 2019; expect to grow dividends >= adj net income growth over time Repurchased $250M in shares in Q1 2019 Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION 30#31Topics of Interest IR Ingersoll Rand Inspiring Progress™#32Topics of Interest Transport Order Rates ― - ― Tight trucking capacity, U. S. regulatory changes and U. S. tax law changes drove strong demand for class 8 trailers in each quarter of 2018 OEM constraints led to significant pre-orders of Trailer refrigerated units and auxiliary power units driving record backlogs for our Transport business at the beginning of 2019 Backlog conversion expected to drive strong Transport revenue growth in 2019; Transport market outlook remains healthy heading into 2020 32 32 R Ingersoll Rand. Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION#33Topics of Interest (cont.) ● Full Year Price / Cost Outlook of +20 bps to +30 bps ― ― ― ― — Q1 price / cost +70 bps driven by carryover of strong PY pricing and 2019 pricing actions PY pricing comps strengthen beginning in Q2; Full PY pricing laps in Q3/Q4 Expect cont'd commodity inflation in Q2 w/ moderating tier 1 & 2 material inflation in 2H Sec 301 tariff carryover impacts expected in Q2 & Q3; Full PY tariff impacts lap in Q4 Outlook includes proposed Sec 301 list 3 tariff increase from 10% to 25%; Actions identified to address increase if/when needed All in, expect to continue to actively, effectively manage inflation and tariffs R Ingersoll Rand. Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION 33 33#34Summary: Expect Cont'd Strong Rev, EPS and Free Cash Flow in 2019 Strategy Brands Innovation Performance Cash Flow Capital Allocation Strategy tied to attractive end markets supported by global mega trends . Franchise brands and businesses with leadership market positions Sustained business investments delivering innovation and growth, operating excellence and improving margins • Experienced management and high performing team culture • Operating model delivers powerful cash flow • Capital allocation priorities deliver strong shareholder returns. R Ingersoll Rand. TRANE T THERMO KING American Standard Club Car HEATING & AIR CONDITIONING ARO Note: Information as of April 30, 2019 --- NOT AN UPDATE OR REAFFIRMATION 34#35Appendix IR Ingersoll Rand Inspiring Progress™#36Q1 Organic Revenue Up 8% Year-Over-Year Organic Bookings Down 2% Against Tough Comparison R Ingersoll Rand. Organic* 2017 2018 2019 Bookings Q1 Q2 Q3 Climate 6% 3% Q4 FY Q1 Q2 Q3 Q4 FY Q1 5% 7% 5% 11% 17% 1 12% 2 20% % 15% -3% Industrial 9% 5% 5% 12% 8% 5% 8% 7% 6% 6% 1% Total 7% 4% 5% 8% 6% 9% 15% 11% 17% 13% -2% Organic* 2017 2018 2019 Revenue Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Climate 6% 8% 3% 6% 6% 8% 9% 10% 9% 9% 10% Industrial 1% 2% (1%) 5% 2% 9% 9% 9% 6% 8% 3% Total 4% 7% 2% 6% 5% 8% 9% 10% 8% 9% 8% *Organic revenues and bookings exclude acquisitions and currency 36#37Q1 Non-GAAP Measures Definitions Organic bookings is defined as reported orders in the current period adjusted for the impact of currency and acquisitions. Organic revenue is defined as GAAP net revenues adjusted for the impact of currency and acquisitions. Currency impacts on net revenues and bookings are measured by applying the prior year's foreign currency exchange rates to the current period's net revenues and bookings reported in local currency. This measure allows for a direct comparison of operating results excluding the year-over-year impact of foreign currency translation. Adjusted operating income is defined as GAAP operating income plus restructuring costs and acquisition related transaction costs in 2019. Adjusted operating income in 2018 is defined as GAAP operating income plus restructuring costs. Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues. Adjusted continuing EPS in 2019 is defined as GAAP continuing EPS plus restructuring costs and acquisition related transaction costs, net of tax impacts. Adjusted continuing EPS in 2018 is defined as GAAP continuing EPS plus restructuring costs and debt redemption premium and related charges, net of tax impacts. Adjusted EBITDA is defined as adjusted operating income plus depreciation and amortization expense plus or minus other income / (expense), net. Book to bill is defined as reported orders in the current period divided by GAAP net revenues. R) Ingersoll Rand. 37#38Q1 Non-GAAP Measures Definitions Free cash flow in 2019 and 2018 is defined as net cash provided by (used in) continuing operating activities, less capital expenditures, plus cash payments for restructuring. In 2018, the Company updated its definition of free cash flow to exclude the impacts of discontinued operations. Please refer to the free cash flow reconciliation on table 9 of the news release. Working capital measures a firm's operating liquidity position and its overall effectiveness in managing the enterprises' current accounts. • • Working capital is calculated by adding net accounts and notes receivables and inventories and subtracting total current liabilities that exclude short term debt, dividend payables and income tax payables. Working capital as a percent of revenue is calculated by dividing the working capital balance (e.g. as of March 31) by the annualized revenue for the period (e.g. reported revenues for the three months ended March 31) multiplied by 4 to annualize for a full year. Adjusted effective tax rate for 2019 is defined as the ratio of income tax expense, plus or minus the tax effect of adjustments for restructuring costs and acquisition related transaction costs, divided by earnings from continuing operations before income taxes plus restructuring costs and acquisition related transaction costs. Adjusted effective tax rate for 2018 is defined as the ratio of income tax expense, plus or minus the tax effect of adjustments for restructuring costs and debt redemption premium and related charges, divided by earnings from continuing operations before income taxes plus restructuring costs and debt redemption premium and related charges. This measure allows for a direct comparison of the effective tax rate between periods. Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q1 2019) less the prior period (e.g. Q1 2018), divided by the change in net revenues for the current period less the prior period. R Ingersoll Rand. 38 888