Q2 2017 earnings presentation final

1. Second-Quarter 2017 Results
July 26, 2017

2. Safe Harbor
This presentation includes “forward-looking statements,” which are statements that are not historical facts, including
statements that relate to 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; our projected 2017 full-year financial performance and targets including assumptions regarding our
effective tax rate. 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, global economic conditions, the outcome of any litigation, demand for our products and services, and tax
law changes. Additional factors that could cause such differences can be found in our Form 10-K for the year ended
December 31, 2016, our Form 10-Q for the quarter ended March 31, 2017, our Form 10-Q for the quarter ended June 30,
2017, 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 second quarter of
2017 are estimates.
2

3. Executing a Consistent Strategy that Delivers Profitable Growth
3
Differentiated products
and services deliver
top-tier revenue growth
Sustained
Growth
1.
Margin improvement
and powerful cash flow
Operational
Excellence
2.
Reinvestment, dividends,
share repurchase and
acquisitions
Dynamic Capital
Allocation
3.
Commitment to
integrity, ingenuity and
engagement
Winning
Culture
4.
Strong, globally
recognized brands
Well positioned in both
geographic and end markets
Leading
market shares

4. 2017 Mid-Year Update – Strong Results Driving Higher FY Revenue
and EPS Guidance
4
• Robust North America and China Commercial HVAC and Residential HVAC revenues
• Industrial outlook consistent with continued improvement expectations
• Higher inflation in metals and refrigerants creating increased headwind compounded by
volume above forecast largely purchased at spot rate
• Pricing remains positive in both Climate and Industrial segments
• Transport expectations remain largely unchanged
- North America somewhat stronger, Europe growth lower than anticipated
• FX revenue benefit from weaker dollar forecast; dropping through at lower margin
• Revenue growth, positive price and productivity enabling coverage of material and other
inflation while continuing high levels of business investment to maintain momentum over long
term

5. • Continued strong operating results
– Adjusted continuing EPS of $1.49, up 8% year over year; adjusted margin improved 40 bps
– Raising revenue growth and adjusted EPS guidance
• Robust Commercial & Residential performance
– Climate revenues up high-single digits
– Residential revenues up high-teens; Commercial up mid-single digits
Key Takeaways Q2 2017
• Industrial business continues to make steady progress
– Drove strong organic bookings, up 5 percent
– Improved adjusted operating margins, up 250 bps
• Dynamic allocation of capital
– Paid dividends of ~$205M July year to date ($0.40 / share); ~2% dividend yield
– Repurchased $667M or 7.9M shares year to date ($325M Q2)
– $65M July year-to-date channel expansion acquisitions
Adjusted margin and adjusted EPS exclude restructuring in 2016 and 2017. Adjusted EPS in 2017 also excludes a Latin American discrete non-cash tax item. Additionally,
Adjusted EPS in 2016 excludes the sale of the remaining interest in Hussmann. See tables in news release for additional information.
5

6. Q2 2017 Continued Strong Operational Results
Adj. Operating Margin*Net Revenue
14.0%
14.4%
Q2 '16 Q2 '17
$3,688
$3,908
Q2 '16 Q2 '17
$1.38
$1.49
Q2 '16 Q2 '17
+6%
+7%
Organic
40 bps
Adjusted EPS*
* Adjusted margin and adjusted EPS exclude restructuring in 2016 and 2017. Adjusted EPS in 2017 also excludes a Latin American discrete non-cash tax item. Additionally, Adjusted EPS in
2016 excludes the sale of the remaining interest in Hussmann. See tables in news release for additional information.
+8%
• Continued innovation with leading products and services in durable end markets
• Long term focus with consistent strategy and strong execution
• Margin and EPS expansion led by our business operating system
Highlights
6

7. 7
Strong Q2 Bookings Led by Commercial EMEA and Asia, Residential
HVAC, Compressor and Industrial Products Businesses
Y-O-Y
%
Change
Reported Organic*
Q1 2016 1% 4%
Q2 2% 3%
Q3 2% 3%
Q4 6% 7%
Q1 2017 6% 7%
Q2 3% 4%
Climate C
Commercial HVAC - low-single digits
- N. America - mid-single digits
- L. America - mid-single digits
- EMEA + high-single digits
- Asia + high-single digits
Residential HVAC + high-teens
Transport + low-single digits
Total + 3%
Industrial
Compression Tech + mid-single digits
Industrial Products + mid-single digits
Small Elec. Vehicle - low-single digits
Total + 5%
Y-O-Y Change in Organic* Bookings
*Organic bookings excludes acquisitions and currency

8. North America Europe
Asia
Latin America
Revenue change Y-O-Y Q2 Reported Q2 Organic
Climate +7% +8%
Industrial +1% +2%
Total +6% +7%
Climate
Industrial
Middle East/Africa
C O N S O L I D A T E D R E S U L T S
Q2 Segment Organic Revenue Growth Led by North
America, Asia and Middle East/Africa
Climate
Industrial
Climate
Industrial
Climate
Industrial
Climate
Industrial
8

9. E n t e r p r i s e
Innovation, Operational Excellence and Productivity Continue to
Drive Adjusted Margin Expansion
• Higher margin driven largely by volume and productivity initiatives
• Continued inflation driven primarily by steel and tier 2 commodities
• Business continues to leverage cost structure as top line grows
• Continued successful strategy investing in products, systems, services and channel
Highlights
14.0%
0.6 (0.2) 14.4%
2Q 2016 Volume / Mix / FX Price/Material
Inflation
Productivity/Other
Inflation
Investment/Other 2Q 2017
0.5 (0.5)
(0.2) Investment
+40bps
Adjusted Operating
Margin
Adjusted Operating
Margin
9

10. C L I M A T E S E G M E N T
Q2 Strong Commercial and Residential HVAC Partially Offset by
Softer Transport Results
Adj. Operating Margin*Net Revenue
16.9% 16.8%
Q2 '16 Q2 '17
$2,935
$3,144
Q2 '16 Q2 '17
18.8% 18.8%
Q2 '16 Q2 '17
+7%
+8%
Organic
-10 bps
Adj. OI + D&A %**
Flat
* Adjusted operating margin excludes restructuring in 2016 and 2017. See tables in news release for additional information.
** Adjusted OI + D&A divided by revenue. This excludes restructuring in 2016 and 2017. See tables in news release for additional information.
• Strong Commercial revenue growth in applied equipment, unitary equipment, parts and service
• Residential continues to outperform with market share gains
• Low-single digit revenue decline at Thermo King due to softening markets
• Adjusted operating margins from revenue gains, productivity and price increases were offset by material
inflation and negative business mix
Highlights
10

11. I N D U S T R I A L S E G M E N T
Q2 Solid Margin Expansion and Higher Revenue
10.0%
12.5%
Q2 '16 Q2 '17
Adj. Operating Margin*
$753 $765
Q2 '16 Q2 '17
Net Revenue
12.3%
14.9%
Q2 '16 Q2 '17
+1%
+2%
Organic
+250 bps
Adj. OI + D&A %**
+260 bps
• Aftermarket and Services delivered mid-single digit revenue and bookings growth in Compression
Technologies
• Service focus, new product development and cost reduction initiatives drove margin expansion
* Adjusted operating margin excludes restructuring in 2016 and 2017. See tables in news release for additional information. Q2 2016 included a
reclassification of new product development costs which were an $8 million, or 1.1%, drag on operating margins. Excluding reclassification,
operating margin was 10.4%; adjusted operating margin was 11.1%.
** Adjusted OI + D&A divided by revenue. This excludes restructuring in 2016 and 2017. See tables in news release for additional information. 11
Highlights

12. 2014 2015 2016 2017A/F
1,345*
810
985*
Strong Balance Sheet and Free Cash Flow
Free Cash Flow
$ Millions
*Excludes the impact of the IRS agreement and restructuring in 2015, excludes restructuring and the proceeds on the sale of Hussmann in 2016 and excludes restructuring in 2017.
~1.2B*
$Mil YE 15 Q1 16 Q2 16 Q3 16 YE 16 Q1 17 Q2 17
Cash 737 613 929 1,505 1,715 1,322 1,310
Debt 4,218 4,473 4,086 4,070 4,070 4,072 4,066
Net Debt 3,481 3,860 3,157 2,565 2,355 2,750 2,756
• Q2 FCF of $414M as expected
• Working capital as a percent of revenue improved 50 bps year-over-year
• Capital expenditures of $44M
• 2017 FCF guidance ~$1.2B
12
Highlights

13. Dynamic Capital Allocation Focused on Delivering High Returns; 2017 Plan to
deploy ~$410M for Dividends and $1.5B for Share Repurchase and Acquisitions
13
Maintain Healthy,
Efficient Balance Sheet
Invest for Growth
Return Capital to
Shareholders
• Preserve liquidity and manage leverage
• Maintain flexibility to invest in growth and evolve with business conditions
• No meaningful debt maturities until 2018
• Target BBB investment grade rating
• Pay a competitive dividend and grow dividend at or above rate of
earnings growth over time; ~$205M YTD dividends paid; dividend at
$1.60/share, annualized; 20% annual CAGR 2012 to 2017
• Repurchase shares with excess cash when intrinsic value
provides high returns; repurchased 7.9M shares for $667M July ytd
• Strengthen the core business and extend product & market leadership
• Invest in new technology and innovation
• Acquire products, channels and business adjacencies where
more attractive than growing organically; $65M July ytd channel acquisitions
2
1
3

14. Guidance

15. 2017 Enterprise Guidance
Prior FY Guidance*
Climate
‒ Revenue Reported
‒ Revenue Organic
~3%
~4%
Adjusted Operating Margin 14.6% to 15.1%
Industrial
‒ Revenue Reported
‒ Revenue Organic
~-2%
~-1%
Adjusted Operating Margin 11.1% to 12.1%
Total
‒ Revenue Reported
‒ Revenue Organic
~2%
~3%
Adjusted Operating Margin 12.4% to 12.8%
Updated FY Guidance*
~5.5%
~5.5%
14.6% to 15.1%
Flat
Flat
11.1% to 12.1%
~4.5%
~4.5%
12.4% to 12.8%
* On January 1, 2017, the company adopted Accounting Standard Update (ASU) 2017-07. 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. Please refer to table 9 of the news release for additional information.
15

16. 2017 Guidance: ~$4.50 Full-year Continuing Adjusted EPS at
top of prior range
Prior FY Guidance
Updated FY
Guidance
Y-O-Y change in revenue
• Reported
• Organic
~2%
~3%
~4.5%
~4.5%
EPS continuing $4.20 to $4.35 ~$4.22
Restructuring – (add back) ($0.15) ($0.15)
Non-cash tax item – (add back) ($0.13)
EPS continuing – adjusted $4.35 to $4.50 ~$4.50
EPS – discontinued ($0.13) ($0.05)
Share Count – Millions ~261 ~259
Free Cash Flow $1.1B to $1.2B ~$1.2B
Adjusted Tax Rate 21% to 22% 21% to 22%
16

17. Topics of Interest

18. Topics of Interest
18
• Currency Impact on 2017
− Expected dollar strength vs 2016 against Euro, Pound and China Yuan (RMB)
weaker than prior guidance
− Full-year currency expected to have minor negative revenue impact; improved from
~1 percentage point in prior guidance
− Expected ~2 cent negative full-year 2017 EPS impact; improved from ~10 cent
negative impact in prior guidance
● Climate Segment Q2 Margin and Leverage
− Climate Q2 organic revenues up 8% YOY
− Operating margin of 16.8% is down 10 basis points primarily due to:
• Material and other inflation
• Unfavorable product mix– decline of high margin Thermo King business
• Margin declines in overseas HVAC businesses primarily tied to lower revenues

19. Topics of Interest (Continued)
● Non-cash Latin American tax item
− Q2 discrete non-cash tax adjustment of ~$33 million or ($0.13) EPS
− Related to impairment of deferred tax assets, primarily net operating loss
carryforwards, in Latin America
− Deferred tax assets remain available for future use when markets turn profitable
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20. 20
Summary: 2017 Expected to be Another Strong Year With Top-
Quartile Performance
• Continued strong Q2 results indicative of successful execution of our strategy and
performance of our business operating system
• Healthy end markets, continued market share gains and operating margin improvements
expected in 2H 2017
• Robust volume/revenue performance enabling delivery of strong 2017 results while
maintaining high levels of business investment supporting longer term growth/profitability
• Industrial business on track and delivering steady consistent improvement
• Raising revenue and EPS guidance for 2017; free cash flow greater than or equal to 100% of
net income
• Balanced capital allocation through 1H 2017; full year 2017 plans unchanged
− ~$410M in dividends
− ~$1.5B between share repurchases and acquisitions

21. Appendix

22. Q2 Organic Revenue Up 7% Year-Over-Year
Reported 2015 2016 2017
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2
Climate 6% 2% 4% 2% 3% 3% 4% 3% 3% 3% 5% 7%
Industrial 7% (1%) (2%) 5% 2% (7%) (4%) Flat (4%) (4%) (1%) 1%
Total 6% 2% 3% 3% 3% Flat 2% 2% 1% 2% 4% 6%
2013
Organic* 2015 2016 2017
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2
Climate 9% 5% 8% 5% 7% 4% 5% 3% 4% 4% 6% 8%
Industrial 4% (4%) (2%) (2%) (1%) (5%) (3%) 1% (3%) (3%) 1% 2%
Total 8% 3% 6% 3% 5% 2% 3% 3% 2% 3% 4% 7%
*Organic revenues excludes acquisitions and currency
22

23. 0%
-4%
9%
Reported
Organic*
*Organic revenues excludes acquisitions and currency
9%
-1%
3%
Q2 Revenue Up 6% and Organic Up 7%
7%
8%
2%
Climate
Industrial
Reported
Organic*
1%
Segment Revenue Change
Geographic Revenue Change
Americas
Europe, Middle
East, Africa
Asia
N. America Organic +10%
23

24. Q2 2017 Year-Over-Year Revenue Change
Reported Organic*
Climate
- Commercial HVAC + Mid-single + Mid-single
- Residential HVAC + High-teen + High-teen
- Transport - Low-single - Low-single
Total Climate + 7% + 8%
Industrial
- Compression-related Products + Low-single + Low-single
- Industrial Products + Low-single + Low-single
- Small Electric Vehicle + Low-single + Low-single
Total Industrial + 1% + 2%
Total Company + 6% + 7%
24*Organic revenues excludes acquisitions and currency

25. E n t e r p r i s e
Volume and Cost Reduction Initiatives Offset by Inflation Headwinds
and Investments
• Volume and productivity initiatives driving margin expansion
• Continued investment in products, while expanding channels
Highlights
13.9% 0.6 (0.2) 14.3%
2Q 2016 Volume / Mix / FX Price/Material Inflation Productivity/Other
Inflation
Investment/Other 2Q 2017
0.5 (0.5)
(0.2) Investment
+40 bps
GAAP Operating
Margin
GAAP Operating
Margin
25

26. Non-GAAP Measures Definitions
Organic revenue is defined as GAAP net revenues adjusted for the impact of currency and acquisitions. Organic bookings is defined
as reported orders closed/completed in the current period 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 expenses. Please refer to the reconciliation of
GAAP to non-GAAP measures on tables 3 and 4 of the news release.
Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues.
In 2017 Adjusted continuing EPS is defined as GAAP continuing EPS plus restructuring expenses, net of tax impacts, plus the discrete
non-cash tax adjustment in Latin America. In 2016 Adjusted continuing EPS is defined as GAAP continuing EPS plus restructuring
expenses, less the gain from the sale of the company’s remaining interest in Hussmann, net of tax impacts. Please refer to the
reconciliation of GAAP to non-GAAP measures on tables 3 and 4 of the news release.
Cash flow return on invested capital is defined as annual free cash flow divided by the sum of gross fixed assets, receivables and
inventory less accounts payables
Free cash flow is defined as net cash provided by operating activities, less capital expenditures, plus cash payments for restructuring.
Please refer to the free cash flow reconciliation on table 8 of the news release.
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27. Non-GAAP Measures Definitions
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 June 30) by the
annualized revenue for the period (e.g. reported revenues for the three months ended June 30) multiplied by 4 to annualize for
a full year).
Adjusted effective tax rate for 2017 is defined as the ratio of income tax expense, plus or minus the tax effect of adjustments for
restructuring costs and the discrete non-cash tax adjustment in Latin America, divided by earnings from continuing operations
before income taxes plus restructuring expenses. Adjusted effective tax rate for 2016 is defined as the ratio of income tax
expense, plus or minus the tax effect of adjustments for restructuring costs and the gain on sale of Hussmann interest, divided
by earnings from continuing operations before income taxes less the gain on sale of Hussmann interest plus restructuring
expenses. This measure allows for a direct comparison of the effective tax rate between periods.
Adjusted OI + D&A is defined as adjusted operating income plus depreciation and amortization expense.
Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q2 2017) less
the prior period (e.g. Q2 2016), divided by the change in net revenues for the current period less the prior period.
27

28. 28