Trane Technologies : 2022 Irish Annual Accounts

TRANE TECHNOLOGIES plc

Directors' Report and Financial Statements Financial Year Ended 31 December 2022

TRANE TECHNOLOGIES PLC

TABLE OF CONTENTS

	Page
Directors and Other Information	3
Directors' Report	4
Statement of Director's Responsibilities	39
Independent Auditors' Report (Group and Parent Company)	40
Consolidated Profit and Loss Account	47
Consolidated Statement of Other Comprehensive Income	48
Consolidated Balance Sheet	49
Consolidated Statement of Changes in Equity	50
Consolidated Statement of Cash Flows	51
Notes to the Consolidated Financial Statements	52
Parent Company Balance Sheet	109
Parent Company Statement of Changes in Equity	110
Parent Company Statement of Comprehensive Income	111
Notes to the Parent Company Financial Statements	112

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DIRECTORS AND OTHER INFORMATION

Board of Directors at 5 April 2023	Kirk E. Arnold
	Ann C. Berzin
	April Miller Boise
	John G. Bruton
	Jared L. Cohon
	Gary D. Forsee
	Mark R. George
	John A. Hayes
	Linda P. Hudson
	Myles P. Lee
	David S. Regnery
	Melissa N. Schaeffer
	John P. Surma
	Tony L. White
Company Secretaries	Evan M. Turtz (Company Secretary)
	Computershare Inc. (Assistant Secretary)
Registered Office	170-175 Lakeview Drive
	Airside Business Park
	Swords
	Co. Dublin
Registered Number	469272
Solicitor	Arthur Cox
	Ten Earlsfort Terrace
	Dublin 2
Auditors	PricewaterhouseCoopers
	One Spencer Dock
	North Wall Quay
	Dublin 1
Principal Bankers	JP Morgan Chase Bank,
	125 London Wall
	London EC2Y 5AJ
	England

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DIRECTORS' REPORT

Directors' report for the year ended 31 December 2022.

The directors present their report and the Financial Statements and related Notes of Trane Technologies plc for the financial year ended 31 December 2022.

Principal Activities

Trane Technologies plc (Plc, Parent Company or Company), a public limited company incorporated in Ireland in 2009, and its consolidated subsidiaries (collectively, we, our, the Group) is a global climate innovator. We bring sustainable and efficient solutions to buildings, homes and transportation through our strategic brands, Trane® and Thermo King®, and our environmentally responsible portfolio of products, services and connected intelligent controls. We generate turnover and cash primarily through the design, manufacture, sales and service of solutions for Heating, Ventilation and Air Conditioning (HVAC), transport refrigeration and custom refrigeration solutions. As an industry leader with an extensive global install base, our growth strategy includes expanding recurring turnover through services and rental options. Our unique business operating system, uplifting culture and highly engaged team around the world are also central to our earnings and cash flow growth.

Through our sustainability-focused strategy and purpose to boldly challenge what's possible for a sustainable world, we meet critical needs and growing global demand for innovation that reduces greenhouse gas emissions while enabling healthier, efficient indoor environments and safe, reliable delivery of essential temperature-controlled cargo. We have announced certain defined sustainability commitments with a goal of achieving these commitments by 2030 (2030 Sustainability Commitments). Trane Technologies' bold 2030 Sustainability Commitments have been verified by the Science Based Targets initiative (SBTi) and include our 'Gigaton Challenge' to reduce customer greenhouse gas emissions by a billion metric tons, 'Leading by Example' through carbon-neutral operations across our own footprint, and 'Opportunity for All' by building a diverse workforce reflective of our communities.

Reportable Segments

We operate under three reportable segments.

• Our Americas segment innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions. This segment had 2022 turnover of $12,640.8 million.
• Our EMEA segment innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and industrial processing, and transport refrigeration systems and solutions. This segment had 2022 turnover of $2,034.5 million.
• Our Asia Pacific segment innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions. This segment had 2022 turnover of $1,316.4 million.

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DIRECTORS' REPORT (continued)

Products and Services

Our principal products and services include the following:

Air conditioners	Large commercial unitary
Air exchangers	Light commercial unitary
Air handlers	Multi-pipe HVAC systems
Airside and terminal devices	Package heating and cooling systems
Air-sourced heat pumps	Parts and supplies (aftermarket and OEM)
Auxiliary power units (electric and diesel)	Rail refrigeration systems
Building management systems	Rate chambers
Bus air purification systems	Refrigerant reclamation
Bus and rail HVAC systems	Renewable energy projects
Chillers	Repair and maintenance services
Coils and condensers	Rental services
Container refrigeration systems and gensets	Residential Air Filtration System
Control systems	Residential Hybrid Heating Solutions
Cryogenic refrigeration systems	Self-powered truck refrigeration systems
Dehumidifiers	Service agreements
Ductless	Telematics Solutions
Energy efficiency programs	Temporary heating and cooling systems
Energy infrastructure programs	Thermal energy storage
Energy management services	Thermostats/controls & associated digital solutions
Energy performance contracting	Trailer refrigeration systems (diesel, electric and hybrid)
Furnaces	Transport heater products
Geothermal systems	Truck refrigeration systems (diesel, electric and hybrid)
Home automation	Ultra-low temperature freezers
Humidifiers	Unitary systems (light and large)
HVAC Performance-monitoring applications	Variable refrigerant flow
Indoor air quality assessments and related products for	Vehicle-powered truck refrigeration systems
HVAC and Transport solutions
Industrial refrigeration	Ventilation
Installation contracting	Water source heat pumps

These products are sold primarily under our tradenames including Trane® and Thermo King®.

Competitive Conditions

Our products and services are sold in highly competitive markets throughout the world. Due to the diversity of these products and services and the variety of markets served, we encounter a wide variety of competitors that vary by product line and services. They include well-established regional or specialized competitors, as well as larger U.S. and non-U.S. corporations or divisions of larger companies.

The principal methods of competition in these markets relate to price, quality, delivery, service and support, technology and innovation. We are one of the leading manufacturers in the world of HVAC systems and services and transport temperature control products and services.

Distribution

Our products are distributed by a number of methods, which we believe are appropriate to the type of product. U.S. sales are made through branch sales offices, distributors and dealers across the country. Non-U.S. sales are made through numerous subsidiary sales and service companies with a supporting chain of distributors throughout the world.

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