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	$ 11,128.4		$ 12,386.8		$ 3,605.1		$ 526.3		$ 452.9		$ 358.6		15%	13%	10%	(4%)	(6%)	(3%)	2%	(0%)	(9%)

Johnson Controls International plc			JCI	36,237.8		42,074.4		22,317.0		2,928.0		2,106.0		795.0		13%	9%	4%	(7%)	3%	(2%)	13%	(33%)	NM
Trane Technologies plc			TT	35,512.1		35,821.6		15,982.3		2,412.4		2,032.4		923.3		15%	13%	6%	16%	(26%)	15%	(26%)	(0%)	(23%)
A. O. Smith Corporation			AOS	8,798.4		8,239.4		2,811.7		485.2		404.3		316.2		17%	14%	11%	(8%)	(5%)	(16%)	(4%)	(19%)	(12%)
Watsco, Inc.			WSO	8,743.4		9,502.7		4,972.5		398.0		372.1		311.1		8%	7%	6%	6%	5%	3%	10%	3%	7%
AAON, Inc.			AAON	3,949.0		3,979.6		520.4		125.4		101.3		77.4		24%	19%	15%	13%	10%	50%	35%	60%	42%

Mean																16%	13%	8%	4%	(3%)	10%	6%	2%	39%
Median																15%	13%	6%	6%	3%	3%	10%	(0%)	7%

High																24%	19%	15%	16%	10%	50%	35%	60%	NM
Low																8%	7%	4%	(8%)	(26%)	(16%)	(26%)	(33%)	(23%)
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	0.81	22%	NM	17%	4%	NM	4.0x	3.9x	15.9x	13.3x	13.6x

Johnson Controls International plc			JCI	Sep-30	1.13	5%	4%	2%	9%	55%	7.6x	6.9x	13.5x	11.5x	9.7x
Trane Technologies plc			TT	Dec-31	1.23	12%	14%	5%	6%	64%	4.8x	3.5x	9.9x	9.1x	8.3x
A. O. Smith Corporation			AOS	Dec-31	1.05	16%	19%	10%	8%	41%	2.5x	1.5x	55.1x	49.4x	45.9x
Watsco, Inc.			WSO	Dec-31	0.7	14%	17%	12%	11%	32%	2.1x	1.9x	NM	NM	NM
AAON, Inc.			AAON	Dec-31	0.67	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%	8%	41%	2.5x	1.9x	55.1x	49.4x	45.9x

High						29%	25%	20%	11%	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	2021E Revenue	2022E Revenue	LTM EBITDA	2021E EBITDA	2022E EBITDA	LTM EBIT	2021E EBIT	2022E EBIT	LTM EBITDA Margin	Total Debt / EBITDA	LTM EPS	2021E EPS	2022E EPS
Lennox International Inc.	LII	$ 293.4	92%	$ 11,128.4	$ 12,386.8	3.4x	3.4x	3.2x	23.5x	21.7x	19.4x	27.4x	24.9x	22.0x	15%	4.0x	31.6x	30.9x	27.6x

Johnson Controls International plc	JCI	48.4	91%	36,237.8	42,074.4	1.9x	1.8x	1.7x	14.4x	12.7x	11.9x	20.0x	16.8x	15.3x	13%	7.6x	57.6x	20.2x	18.3x
Trane Technologies plc	TT	138.8	89%	35,512.1	35,821.6	2.2x	2.9x	2.7x	14.8x	18.9x	16.7x	17.6x	22.5x	19.5x	15%	4.8x	28.9x	32.2x	27.1x
A. O. Smith Corporation	AOS	53.2	90%	8,798.4	8,239.4	2.9x	2.9x	2.7x	17.0x	16.0x	14.1x	20.4x	19.1x	16.3x	17%	2.5x	27.4x	27.3x	23.2x
Watsco, Inc.	WSO	260.0	NM	8,743.4	9,502.7	1.9x	1.9x	1.8x	23.9x	22.6x	21.4x	25.5x	24.3x	22.5x	8%	2.1x	38.2x	37.5x	35.0x
AAON, Inc.	AAON	75.6	NM	3,949.0	3,979.6	7.6x	7.7x	8.0x	31.7x	32.3x	33.0x	39.3x	41.0x	42.5x	24%	0.8x	51.4x	52.3x	56.7x

Mean						3.3x	3.5x	3.4x	20.4x	20.5x	19.4x	24.6x	24.7x	23.2x	16%	3.6x	40.7x	33.9x	32.0x
1st Quartile						1.9x	1.9x	1.8x	14.8x	16.0x	14.1x	20.0x	19.1x	16.3x	13%	2.1x	28.9x	27.3x	23.2x
Median						2.2x	2.9x	2.7x	17.0x	18.9x	16.7x	20.4x	22.5x	19.5x	15%	2.5x	38.2x	32.2x	27.1x
3rd Quartile						2.9x	2.9x	2.7x	23.9x	22.6x	21.4x	25.5x	24.3x	22.5x	17%	4.8x	51.4x	37.5x	35.0x

High						7.6x	7.7x	8.0x	31.7x	32.3x	33.0x	39.3x	41.0x	42.5x	24%	7.6x	57.6x	52.3x	56.7x
Low						1.9x	1.8x	1.7x	14.4x	12.7x	11.9x	17.6x	16.8x	15.3x	8%	0.8x	27.4x	20.2x	18.3x
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	2021E	2022E	2021E EBITDA Margin	LTM Debt / EBITDA	LTM Int. Exp / EBITDA	2021E	2022E	LT EPS Growth	Dividend Yield
Lennox International Inc.	LII	$ 293.4	92%	$ 11,128.4	$ 12,386.8	21.7x	19.4x	16%	4.0x	0.1x	30.9x	27.6x	6%	4%

Johnson Controls International plc	JCI	48.4	91%	36,237.8	42,074.4	12.7x	11.9x	14%	7.6x	0.1x	20.2x	18.3x	(4%)	9%
Trane Technologies plc	TT	138.8	89%	35,512.1	35,821.6	18.9x	16.7x	15%	4.8x	0.1x	32.2x	27.1x	(1%)	6%
A. O. Smith Corporation	AOS	53.2	90%	8,798.4	8,239.4	16.0x	14.1x	18%	2.5x	0.0x	27.3x	23.2x	9%	8%
Watsco, Inc.	WSO	260.0	NM	8,743.4	9,502.7	22.6x	21.4x	8%	2.1x	0.0x	37.5x	35.0x	1%	11%
AAON, Inc.	AAON	75.6	NM	3,949.0	3,979.6	32.3x	33.0x	24%	0.8x	0.0x	52.3x	56.7x	2%	2%

Mean						20.5x	19.4x	16%	3.6x	0.0x	33.9x	32.0x	1%	7%
1st Quartile						16.0x	14.1x	14%	2.1x	0.0x	27.3x	23.2x	(1%)	6%
Median						18.9x	16.7x	15%	2.5x	0.0x	32.2x	27.1x	1%	8%
3rd Quartile						22.6x	21.4x	18%	4.8x	0.1x	37.5x	35.0x	2%	9%

High						32.3x	33.0x	24%	7.6x	0.1x	52.3x	56.7x	9%	11%
Low						12.7x	11.9x	8%	0.8x	0.0x	20.2x	18.3x	(4%)	2%