Comparable Company Analysis

Lennox International Inc.
Benchmarking Analysis - Financial Statistics and Ratios, Page 1
($ in millions, except per share data)

				Market Valuation				LTM Financial Statistics								LTM Profitability Margins			Growth Rates 1 year
																			Revenue		EBITDA		EPS
Company			Ticker	Equity Value		Enterprise Value		Revenue		EBITDA		EBIT		Net Income		EBITDA (%)	EBIT (%)	Net Income (%)	Hist. 1-year	Est. 1-year	Hist. 1-year	Est. 1-year	Hist. 1-year	Est. 1-year
Lennox International Inc.			LII	$ 11,328.3		$ 12,481.4		$ 3,605.1		$ 526.3		$ 452.9		$ 358.6		15%	13%	10%	(4%)	(6%)	(3%)	0%	(0%)	(10%)

Johnson Controls International plc			JCI	33,046.4		40,293.4		22,317.0		2,928.0		2,106.0		795.0		13%	9%	4%	(7%)	3%	(2%)	13%	(33%)	NM
Trane Technologies plc			TT	34,626.0		37,111.1		15,982.3		2,412.4		2,032.4		923.3		15%	13%	6%	16%	(26%)	15%	(26%)	(0%)	(24%)
A. O. Smith Corporation			AOS	9,282.8		8,933.7		2,811.7		485.2		404.3		316.2		17%	14%	11%	(8%)	(6%)	(16%)	(5%)	(19%)	(13%)
Watsco, Inc.			WSO	8,191.8		8,540.3		4,972.5		398.0		372.1		311.1		8%	7%	6%	6%	5%	3%	10%	3%	6%
AAON, Inc.			AAON	3,448.0		3,379.0		520.4		125.4		101.3		77.4		24%	19%	15%	13%	10%	50%	36%	60%	40%

Mean																16%	13%	8%	4%	(3%)	10%	5%	2%	39%
Median																15%	13%	6%	6%	3%	3%	10%	(0%)	6%

High																24%	19%	15%	16%	10%	50%	36%	60%	NM
Low																8%	7%	4%	(8%)	(26%)	(16%)	(26%)	(33%)	(24%)
Lennox International Inc.
Benchmarking Analysis - Financial Statistics and Ratios, Page 2
($ in millions, except per share data)

				General		Return on Investment				LTM Leverage Ratios			LTM Coverage Ratios
Company			Ticker	FYE	Beta	ROIC (%)	ROE (%)	ROA (%)	Implied Div. Yield (%)	Debt / Tot. Cap. (%)	Debt / EBITDA (x)	Net Debt / EBITDA (x)	EBITDA / Int. Exp (x)	(EBITDA - Cpx) / Int. (x)	EBIT / Int. Exp. (x)
Lennox International Inc.			LII	Dec-31	0.89	22%	NM	17%	4%	NM	4.0x	3.9x	15.9x	13.3x	13.6x

Johnson Controls International plc			JCI	Sep-30	1.19	5%	4%	2%	9%	55%	7.6x	6.9x	13.5x	11.5x	9.7x
Trane Technologies plc			TT	Dec-31	1.29	12%	14%	5%	6%	64%	4.8x	3.5x	9.9x	9.1x	8.3x
A. O. Smith Corporation			AOS	Dec-31	1.09	16%	19%	10%	7%	41%	2.5x	1.5x	55.1x	49.4x	45.9x
Watsco, Inc.			WSO	Dec-31	0.79	14%	17%	12%	12%	32%	2.1x	1.9x	NM	NM	NM
AAON, Inc.			AAON	Dec-31	0.66	29%	25%	20%	2%	22%	0.8x	0.2x	NM	NM	NM

Mean						15%	16%	10%	7%	43%	3.6x	2.8x	NM	NM	NM
Median						14%	17%	10%	7%	41%	2.5x	1.9x	55.1x	49.4x	45.9x

High						29%	25%	20%	12%	64%	7.6x	6.9x	NM	NM	NM
Low						5%	4%	2%	2%	22%	0.8x	0.2x	9.9x	9.1x	8.3x
Lennox International Inc.
Comparable Companies Analysis
($ in millions, except per share data)

						Enterprise Value /											Price /
Company	Ticker	Current Share Price	% of 52-wk high	Equity Value	Enterprise Value	LTM Revenue	2020E Revenue	2021E Revenue	LTM EBITDA	2020E EBITDA	2021E EBITDA	LTM EBIT	2020E EBIT	2021E EBIT	LTM EBITDA Margin	Total Debt / EBITDA	LTM EPS	2020E EPS	2021E EPS
Lennox International Inc.	LII	$ 295.9	93%	$ 11,328.3	$ 12,481.4	3.5x	3.5x	3.3x	23.7x	22.2x	19.6x	27.6x	25.1x	21.9x	15%	4.0x	31.9x	31.8x	28.2x

Johnson Controls International plc	JCI	45.6	96%	33,046.4	40,293.4	1.8x	1.7x	1.7x	13.8x	12.2x	11.4x	19.1x	16.2x	15.1x	13%	7.6x	54.3x	19.1x	17.3x
Trane Technologies plc	TT	145.9	95%	34,626.0	37,111.1	2.3x	3.0x	2.8x	15.4x	19.8x	17.5x	18.3x	23.2x	20.3x	15%	4.8x	30.4x	34.3x	29.0x
A. O. Smith Corporation	AOS	57.5	99%	9,282.8	8,933.7	3.2x	3.2x	3.0x	18.4x	17.6x	15.3x	22.1x	20.3x	17.4x	17%	2.5x	29.6x	29.8x	25.1x
Watsco, Inc.	WSO	235.8	95%	8,191.8	8,540.3	1.7x	1.7x	1.6x	21.5x	20.4x	19.4x	22.9x	21.7x	20.6x	8%	2.1x	34.7x	34.1x	31.9x
AAON, Inc.	AAON	66.0	95%	3,448.0	3,379.0	6.5x	6.5x	6.7x	26.9x	27.2x	28.1x	33.3x	33.3x	34.3x	24%	0.8x	44.9x	46.2x	50.1x

Mean						3.1x	3.2x	3.2x	19.2x	19.4x	18.3x	23.2x	22.9x	21.6x	16%	3.6x	38.8x	32.7x	30.7x
1st Quartile						1.8x	1.7x	1.7x	15.4x	17.6x	15.3x	19.1x	20.3x	17.4x	13%	2.1x	30.4x	29.8x	25.1x
Median						2.3x	3.0x	2.8x	18.4x	19.8x	17.5x	22.1x	21.7x	20.3x	15%	2.5x	34.7x	34.1x	29.0x
3rd Quartile						3.2x	3.2x	3.0x	21.5x	20.4x	19.4x	22.9x	23.2x	20.6x	17%	4.8x	44.9x	34.3x	31.9x

High						6.5x	6.5x	6.7x	26.9x	27.2x	28.1x	33.3x	33.3x	34.3x	24%	7.6x	54.3x	46.2x	50.1x
Low						1.7x	1.7x	1.6x	13.8x	12.2x	11.4x	18.3x	16.2x	15.1x	8%	0.8x	29.6x	19.1x	17.3x
Lennox International Inc.
Comparable Companies Analysis
($ in millions, except per share data)

						EV / EBITDA					P/E
Company	Ticker	Current Share Price	% of 52-wk high	Equity Value	Enterprise Value	2020E	2021E	2020E EBITDA Margin	LTM Debt / EBITDA	LTM Int. Exp / EBITDA	2020E	2021E	LT EPS Growth	Dividend Yield
Lennox International Inc.	LII	$ 295.9	93%	$ 11,328.3	$ 12,481.4	22.2x	19.6x	16%	4.0x	0.1x	31.8x	28.2x	3%	4%

Johnson Controls International plc	JCI	45.6	96%	33,046.4	40,293.4	12.2x	11.4x	14%	7.6x	0.1x	19.1x	17.3x	2%	9%
Trane Technologies plc	TT	145.9	95%	34,626.0	37,111.1	19.8x	17.5x	15%	4.8x	0.1x	34.3x	29.0x	2%	6%
A. O. Smith Corporation	AOS	57.5	99%	9,282.8	8,933.7	17.6x	15.3x	18%	2.5x	0.0x	29.8x	25.1x	5%	7%
Watsco, Inc.	WSO	235.8	95%	8,191.8	8,540.3	20.4x	19.4x	8%	2.1x	0.0x	34.1x	31.9x	2%	12%
AAON, Inc.	AAON	66.0	95%	3,448.0	3,379.0	27.2x	28.1x	24%	0.8x	0.0x	46.2x	50.1x	2%	2%

Mean						19.4x	18.3x	16%	3.6x	0.0x	32.7x	30.7x	3%	7%
1st Quartile						17.6x	15.3x	14%	2.1x	0.0x	29.8x	25.1x	2%	6%
Median						19.8x	17.5x	15%	2.5x	0.0x	34.1x	29.0x	2%	7%
3rd Quartile						20.4x	19.4x	18%	4.8x	0.1x	34.3x	31.9x	2%	9%

High						27.2x	28.1x	24%	7.6x	0.1x	46.2x	50.1x	5%	12%
Low						12.2x	11.4x	8%	0.8x	0.0x	19.1x	17.3x	2%	2%