On this page of StockholderLetter.com we present the 4/6/2023 shareholder letter from Otis Worldwide Corp — ticker symbol OTIS. Reading current and past OTIS letters to shareholders can bring important insights into the investment thesis.
Otis Worldwide Corporation Annual Report 2022 A year of resilience, excellence an s ron nancial performance
Celebrating projects around the globe AMERICAS Built as the centerpiece and inspiration for the 1962 Seattle World s Fair, the Space Needle has since become part of the Seattle experience and the globally recognized icon for the city. Otis installed the original space-age-style elevator cabs and has maintained them ever since. In 2022, Otis was chosen again to modernize the elevator experience with new cabs and technology. ASIA PACIFIC Otis completed a major six-year project in Singapore in August 2022, refurbishing 231 escalators across 42 stations on the North-South and East-West lines, operated by SMRT Trains. Each escalator has been upgraded with safety features, higher-efficiency technology and new energy-saving controllers. CHINA The new Line 13 Shenzhen Metro rail expansion serving the western part of Shenzhen will strengthen our two-decade relationship with the metro and provide a citywide express line. Otis will install more than 350 elevators and escalators equipped with our Otis ONE Internet of Things (IoT) platform for real-time monitoring and predictive maintenance. EMEA Otis is providing elevators and service for La Tour Triangle in Paris, a 180-meter-high, mixed-use premium destination. An Otis SkyBuild construction elevator will rise with the building and then transform into a SkyRise passenger elevator. Additional SkyRise units, digitally native Gen360 units and a Compass 360 destination management system will enhance building efficiency. Photo credit for La Tour Triangle: courtesy L Autre Image About the cover Otis technology keeps people moving in the 270-meter New Bund Center skyscraper in Shanghai. Otis provided more than 50 elevators and escalators, the Otis ONE IoT solution, Compass 360 destination management system, and integrated over 10 robots for the tallest building in the sprawling New Bund district. An additional 180 Otis elevators and escalators serve visitors and tenants across the district.
OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2022 Judy Marks, Chair, Chief Executive Officer and President of Otis Worldwide Corporation, joins other Otis executives, customer representatives and partners in reviewing progress at a jobsite in the state of North Rhine-Westphalia in Germany. Otis will equip the project, the state s largest climate-protection housing estate, with connected elevators and modular hoistways. Dear Shareholders, 2022 was a year marked by resilience, excellence and strong financial performance in the face of many macroeconomic challenges. For the third consecutive year, we capitalized on our experience as the industry leader to meet the needs of our customers, passengers and communities while continuing to execute on our long-term strategy, supported by our Service-driven growth model. I am extremely proud of our 69,000 passionate colleagues and their unwavering focus on delivering for our customers, developing innovative products, growing our Service portfolio and driving operational excellence. Together, we navigated continuing impacts from COVID-19, supply-chain disruptions, financial market volatility, broad-based strengthening of the U.S. dollar, commodity price swings, rising inflation and conflict in Eastern Europe. STRONG EXECUTION AND RESULTS New Equipment orders grew by 7.1%, supporting 1 point of share gain,1 and organic sales2 increased by 2.5%, resulting in adjusted net sales2 of $13.6 billion, led by strong Service performance in both maintenance and repair and modernization. Adjusted operating profit grew by 6% at constant currency2 with 30 basis points of margin expansion, driving 7.5% growth in adjusted earnings per share.2 We generated $1.45 billion of free cash flow,2 approximately 115% conversion of GAAP net income. Our strong cash flow performance and shareholderdriven capital allocation strategy enabled us to 1 2 Based on internal estimates. See pages 4 to 6 for additional information regarding non-GAAP financial measures. return significant value to shareholders while investing for the future. From the $1.45 billion of free cash flow2 generated, we distributed $465 million in dividends and repurchased $850 million of shares, while paying down ur strong cash o performance and shareholder-driven capital allocation strategy enabled us to return signi cant value to shareholders hile investing for the future. $500 million in long-term debt. In March 2022, the Board of Directors raised our dividend rate by 20.8%, to a quarterly rate of $0.29, the second annual increase. In total, dividends have increased by nearly 50% since Otis became a public company 1
OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2022 69,000 $13.6B 2.2M colleagues adjusted net sales1,2 maintenance units in April 2020. In addition, we used 1.6 billion in debt raised in 2021 to complete the acquisition of the remaining Zardoya Otis SA minority interest, and we made 26 bolt-on acquisitions in 2022 for $46 million, supporting the growth of our Service portfolio. We continued to invest in the business, with $115 million in capital expenditures to support our long-term growth. We achieved all of this while maintaining our investment-grade credit rating. NEW EQUIPMENT ACROSS REGIONS Global New Equipment units2 declined to roughly 900,000, down from approximately 1 million in 2021, largely related to headwinds in China. This decline was somewhat offset by strong growth in Asia Pacific, and modest growth in the Americas and Europe/Middle East/Africa (EMEA). Our strategy and investment in the business over the past few years continues to drive share gain globally, and we grew our New Equipment adjusted backlog by 11% at constant currency,1 entering 2023 with confidence. In 2023, we expect to see the Asia Pacific New Equipment market grow at a solid pace, the Americas and EMEA to be roughly flat 1 2 2 See pages 4 to 6 for additional information regarding non-GAAP financial measures. Excluding Russia. and China to decline by 5% 10%, leading to a market down modestly, to below 900,000 units. In addition to our strong backlog growth in 2022, we expect to support our New Equipment growth and margin goals with a continued focus on new product innovation, expanded salesforce coverage and efficiency, and additional productivity in the factory and field. SERVICE PORTFOLIO GROWTH Units in our industry-leading Service portfolio increased by 4.1%,2 the fastest rate in more than a decade. Globally, the industry installed base continues to grow at a mid-single-digit pace, and Otis is harnessing the power of digitalization to improve our Service presence and transform our industry with leading technology. A top priority for the company is deployment of our connectivity solution, Otis ONE, which is now active in 30 countries and territories. Approximately 800,000 units in our Service portfolio, including those under warranty, are connected through our various product offerings. Our new application programming interfaces (APIs) are showing good traction with fresh applications for customers, and technology is driving benefits such as improved conversion and stickiness while also improving our productivity and Service profitability. Management is keenly focused on ensuring a sustainable portfolio growth rate to support our long-term sales and profit trajectory. In addition, we see notable growth in our modernization business as elevators globally continue to age. COMMITMENT TO CREATING VALUE FOR ALL We made strong progress on our 13 Environmental, Social and Governance (ESG) goals and regularly share updates with our customers, colleagues and communities about sustainability best practices; diversity, equity and inclusion; colleague welfare; health and safety; and good governance. Looking ahead, our management team remains committed to operational excellence, driving growth, improving margins and creating value for shareholders.
OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2022 WITH GRATITUDE I deeply appreciate the hard work and dedication of every one of our colleagues who deliver with excellence. I am grateful for our leaders who execute as one team, for strong and committed directors, for customers who put their trust in us every day, and for you, the shareholders who back our strategy. Thank you for your support. JUDY MARKS Chair, Chief Executive Officer and President Cautionary Statement This Otis Annual Report contains forward-looking statements that are inherently subject to uncertainties and risks. Please see the section titled Cautionary Note Concerning Factors That May Affect Future Results included in our 2022 Form 10-K accompanied herewith and other filings with the Securities and Exchange Commission, for a list of factors that could cause our results to differ from those anticipated in any such forward-looking statements. Board of Directors Jeffrey H. Black Shailesh G. Jejurikar Margaret M. V. Preston Former Senior Partner and Vice Chairman, Deloitte LLP Chief Operating Officer, The Procter & Gamble Company Managing Director, Cohen Klingenstein, LLC Nelda J. Connors Christopher J. Kearney Shelley Stewart, Jr. Founder and CEO, Pine Grove Holdings, LLC Former Executive Chair, Otis Worldwide Corporation Former Chairman, SPX FLOW, Inc. Former Chief Procurement Officer, E. I. du Pont de Nemours and Company Judith F. Marks Former Chairman and CEO, Global Brass and Copper Holdings, Inc. Kathy Hopinkah Hannan Former Global Lead Partner, National Managing Partner and Vice Chairman, KPMG, LLP Chair, Chief Executive Officer and President, Otis Worldwide Corporation John H. Walker Harold W. McGraw III Former Chairman, President and CEO, McGraw-Hill Companies Executive Leadership* Judy Marks Neil Green Abbe Luersman Chair, Chief Executive Officer and President Executive Vice President & Chief Digital Officer Executive Vice President & Chief People Officer Bernardo Calleja Bryant Henson Anurag Maheshwari President, Otis EMEA Executive Vice President, Global Strategy & Business Development Executive Vice President & Chief Financial Officer President, Otis Americas Nora LaFreniere Perry Zheng St phane de Montlivault Executive Vice President & General Counsel Executive Vice President & Chief Product, Delivery and Customer Officer Jim Cramer President, Otis Asia Pacific Sally Loh President, Otis China *As of April 1, 2023. 3
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OTIS 4/6/2023 Shareholder/Stockholder Letter Transcript:

Otis Worldwide Corporation
Annual Report 2022
A year of
resilience,
excellence
an s  ron     nancial
performance

Celebrating
projects around
the globe
AMERICAS
Built as the centerpiece and inspiration for the 1962 Seattle
World   s Fair, the Space Needle has since become part of
the Seattle experience and the globally recognized icon for
the city. Otis installed the original space-age-style elevator
cabs and has maintained them ever since. In 2022, Otis was
chosen again to modernize the elevator experience with
new cabs and technology.
ASIA PACIFIC
Otis completed a major six-year project in Singapore in
August 2022, refurbishing 231 escalators across 42 stations
on the North-South and East-West lines, operated by
SMRT Trains. Each escalator has been upgraded with
safety features, higher-efficiency technology and new
energy-saving controllers.
CHINA
The new Line 13 Shenzhen Metro rail expansion serving
the western part of Shenzhen will strengthen our two-decade
relationship with the metro and provide a citywide express
line. Otis will install more than 350 elevators and escalators
equipped with our Otis ONE Internet of Things (IoT) platform
for real-time monitoring and predictive maintenance.
EMEA
Otis is providing elevators and service for La Tour Triangle
in Paris, a 180-meter-high, mixed-use premium destination.
An Otis SkyBuild construction elevator will rise with the
building and then transform into a SkyRise passenger
elevator. Additional SkyRise units, digitally native Gen360
units and a Compass 360 destination management system
will enhance building efficiency.
Photo credit for La Tour Triangle: courtesy L   Autre Image
About the cover Otis technology keeps people moving
in the 270-meter New Bund Center skyscraper in Shanghai.
Otis provided more than 50 elevators and escalators,
the Otis ONE IoT solution, Compass 360 destination
management system, and integrated over 10 robots for
the tallest building in the sprawling New Bund district.
An additional 180 Otis elevators and escalators serve
visitors and tenants across the district.

OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2022
Judy Marks, Chair, Chief Executive Officer and President
of Otis Worldwide Corporation, joins other Otis executives,
customer representatives and partners in reviewing
progress at a jobsite in the state of North Rhine-Westphalia
in Germany. Otis will equip the project, the state   s largest
climate-protection housing estate, with connected
elevators and modular hoistways.
Dear Shareholders,
2022 was a year marked by resilience, excellence and strong financial performance in the face of
many macroeconomic challenges. For the third consecutive year, we capitalized on our experience
as the industry leader to meet the needs of our customers, passengers and communities while
continuing to execute on our long-term strategy, supported by our Service-driven growth model.
I am extremely proud of our 69,000 passionate
colleagues and their unwavering focus on
delivering for our customers, developing innovative
products, growing our Service portfolio and
driving operational excellence. Together, we
navigated continuing impacts from COVID-19,
supply-chain disruptions, financial market volatility,
broad-based strengthening of the U.S. dollar,
commodity price swings, rising inflation and
conflict in Eastern Europe.
STRONG EXECUTION AND RESULTS
New Equipment orders grew by 7.1%, supporting
1 point of share gain,1 and organic sales2 increased
by 2.5%, resulting in adjusted net sales2 of
$13.6 billion, led by strong Service performance
in both maintenance and repair and modernization.
Adjusted operating profit grew by 6% at constant
currency2 with 30 basis points of margin expansion,
driving 7.5% growth in adjusted earnings per share.2
We generated $1.45 billion of free cash flow,2
approximately 115% conversion of GAAP net income.
Our strong cash flow performance and shareholderdriven capital allocation strategy enabled us to
1
2
Based on internal estimates.
See pages 4 to 6 for additional information regarding non-GAAP financial measures.
return significant value to shareholders while
investing for the future. From the $1.45 billion
of free cash flow2 generated, we distributed
$465 million in dividends and repurchased
$850 million of shares, while paying down
   ur strong cash   o  
performance and
shareholder-driven capital
allocation strategy enabled
us to return signi  cant
value to shareholders   hile
investing for the future.   
$500 million in long-term debt. In March 2022,
the Board of Directors raised our dividend rate
by 20.8%, to a quarterly rate of $0.29, the second
annual increase. In total, dividends have increased
by nearly 50% since Otis became a public company
1

OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2022
69,000
$13.6B
2.2M
colleagues
adjusted net sales1,2
maintenance units
in April 2020. In addition, we used    1.6 billion in
debt raised in 2021 to complete the acquisition
of the remaining Zardoya Otis SA minority interest,
and we made 26 bolt-on acquisitions in 2022 for
$46 million, supporting the growth of our Service
portfolio. We continued to invest in the business,
with $115 million in capital expenditures to support
our long-term growth. We achieved all of this while
maintaining our investment-grade credit rating.
NEW EQUIPMENT ACROSS REGIONS
Global New Equipment units2 declined to roughly
900,000, down from approximately 1 million in
2021, largely related to headwinds in China. This
decline was somewhat offset by strong growth in
Asia Pacific, and modest growth in the Americas and
Europe/Middle East/Africa (EMEA). Our strategy and
investment in the business over the past few years
continues to drive share gain globally, and we grew
our New Equipment adjusted backlog by 11% at
constant currency,1 entering 2023 with confidence.
In 2023, we expect to see the Asia Pacific
New Equipment market grow at a solid pace,
the Americas and EMEA to be roughly flat
1
2
2
See pages 4 to 6 for additional information regarding non-GAAP financial measures.
Excluding Russia.
and China to decline by 5%     10%, leading to a
market down modestly, to below 900,000 units.
In addition to our strong backlog growth in 2022,
we expect to support our New Equipment growth
and margin goals with a continued focus on new
product innovation, expanded salesforce coverage
and efficiency, and additional productivity in the
factory and field.
SERVICE PORTFOLIO GROWTH
Units in our industry-leading Service portfolio
increased by 4.1%,2 the fastest rate in more than
a decade. Globally, the industry installed base
continues to grow at a mid-single-digit pace, and
Otis is harnessing the power of digitalization to
improve our Service presence and transform our
industry with leading technology. A top priority
for the company is deployment of our connectivity
solution, Otis ONE, which is now active in
30 countries and territories. Approximately
800,000 units in our Service portfolio, including
those under warranty, are connected through our
various product offerings. Our new application
programming interfaces (APIs) are showing good
traction with fresh applications for customers, and
technology is driving benefits such as improved
conversion and stickiness while also improving our
productivity and Service profitability. Management
is keenly focused on ensuring a sustainable
portfolio growth rate to support our long-term sales
and profit trajectory. In addition, we see notable
growth in our modernization business as elevators
globally continue to age.
COMMITMENT TO CREATING VALUE FOR ALL
We made strong progress on our 13 Environmental,
Social and Governance (ESG) goals and regularly
share updates with our customers, colleagues and
communities about sustainability best practices;
diversity, equity and inclusion; colleague welfare;
health and safety; and good governance.
Looking ahead, our management team remains
committed to operational excellence, driving
growth, improving margins and creating value
for shareholders.

OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2022
WITH GRATITUDE
I deeply appreciate the hard work and dedication of every one of our colleagues who deliver
with excellence. I am grateful for our leaders who execute as one team, for strong and committed
directors, for customers who put their trust in us every day, and for you, the shareholders who
back our strategy.
Thank you for your support.
JUDY MARKS
Chair, Chief Executive Officer and President
Cautionary Statement
This Otis Annual Report contains forward-looking statements that are inherently subject to uncertainties and risks. Please see the section titled    Cautionary Note Concerning Factors
That May Affect Future Results    included in our 2022 Form 10-K accompanied herewith and other filings with the Securities and Exchange Commission, for a list of factors that could
cause our results to differ from those anticipated in any such forward-looking statements.
Board of Directors
Jeffrey H. Black
Shailesh G. Jejurikar
Margaret M. V. Preston
Former Senior Partner
and Vice Chairman, Deloitte LLP
Chief Operating Officer,
The Procter & Gamble Company
Managing Director,
Cohen Klingenstein, LLC
Nelda J. Connors
Christopher J. Kearney
Shelley Stewart, Jr.
Founder and CEO,
Pine Grove Holdings, LLC
Former Executive Chair,
Otis Worldwide Corporation
Former Chairman, SPX FLOW, Inc.
Former Chief Procurement Officer,
E. I. du Pont de Nemours and Company
Judith F. Marks
Former Chairman and CEO,
Global Brass and Copper Holdings, Inc.
Kathy Hopinkah Hannan
Former Global Lead Partner,
National Managing Partner
and Vice Chairman, KPMG, LLP
Chair, Chief Executive Officer
and President,
Otis Worldwide Corporation
John H. Walker
Harold W. McGraw III
Former Chairman, President
and CEO, McGraw-Hill Companies
Executive Leadership*
Judy Marks
Neil Green
Abbe Luersman
Chair, Chief Executive Officer
and President
Executive Vice President
& Chief Digital Officer
Executive Vice President
& Chief People Officer
Bernardo Calleja
Bryant Henson
Anurag Maheshwari
President, Otis EMEA
Executive Vice President, Global
Strategy & Business Development
Executive Vice President
& Chief Financial Officer
President, Otis Americas
Nora LaFreniere
Perry Zheng
St  phane de Montlivault
Executive Vice President
& General Counsel
Executive Vice President
& Chief Product, Delivery
and Customer Officer
Jim Cramer
President, Otis Asia Pacific
Sally Loh
President, Otis China
*As of April 1, 2023.
3



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