Wells Fargo Industrials Conference May 2017

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and

uncertainties that could cause actual results to differ materially from such statements. Such

risks and uncertainties include, but are not limited to, the impact of higher raw material and

commodity prices, the impact of unfavorable weather, and the ability of the company to

execute its strategic plans. For more information concerning these and other risks and

uncertainties, see Lennox Internationals Form 10-K and other publicly available filings with

the Securities and Exchange Commission. LII disclaims any intention or obligation to update

or revise any forward-looking statements, whether as a result of new information, future

events or otherwise.

Use of Non-GAAP Financial Measures A reconciliation of non-GAAP financial measures appearing in this presentation to financial

measures prepared in accordance with U.S. Generally Accepted Accounting Principles

(GAAP) is posted on the companys website at www.lennoxinternational.com.

2

3

LII Overview

Business Segment Review

Financial Guidance

Lennox International

is winning in the market place with investments in products & distribution

is well-positioned for margin expansion

is capitalizing on growth markets

is driving shareholder value with a disciplined use of free cash flow

4

55%25%

20%

62%26%

12%

Refrigeration Residential Heating & Cooling

Focus on Three Related Businesses

2016 Revenue 2016 Segment Profit 1

Commercial Heating & Cooling

1 Excludes eliminations and unallocated corporate expense

5

http://www.heatcrafteurope.com/media/com_hikashop/upload/peg_1327917184.pngChart1

0.55

0.25

0.2

revenue

Sheet1

revenue

residential55%1773

commercial25%670

refrigeration20%942

3385

To resize chart data range, drag lower right corner of range.

Chart1

0.62

0.26

0.12

Sement Profit

Sheet1

Sement Profit

residential62%

commercial26%

refrigeration12%

To resize chart data range, drag lower right corner of range.

72%

28%

Business Mix

Customer

Residential Commercial

Americas Europe Asia Pacific

Geography

Replacement New Construction

End Market

89%

7%4%

55%45%

6

Chart1

0.72

0.28

End Market

Sheet1

End Market

Replacement72%

New Construction28%

To resize chart data range, drag lower right corner of range.

Chart1

0.89

0.07

0.04

Geography

Sheet1

Geography

Americas89%

Europe7%

Asia Pacific4%

To resize chart data range, drag lower right corner of range.

Chart1

0.55

0.45

Customer

Sheet1

Customer

residential55%

commercial45%

To resize chart data range, drag lower right corner of range.

$171

$134 $98

$261 $270** ~$285

2012 2013 2014 2015 2016 2017E

*Free cash flow as a percent of GAAP net income. **After impact of $50M pension contribution following cash repatriation. Before impact, $320M FCF and 115% FCF % NI.

FCF % NI*

Sales, Earnings, and Cash Flow Revenue & ROS Free Cash Flow

($Millions)

Core EPS

$2.9 $3.2

$3.4 $3.5 $3.6 ~$3.8

7.6% 9.4%

10.1% 10.9%

12.9% ~13.7%

$0

$1

$2

$3

$4

2012 2013 2014 2015 2016 2017E

SALE

S (U

S$ B

illio

ns)

7

$6.95

GAAP EPS

$5.14

$4.11 $6.34

$4.38

$4.28

$3.70

$3.55

$2.70

$2.63 190% 78% 47% 140% 97%** ~90%

$7.55- $8.15

$7.65- $8.25

$2.9B$3.2B

$3.4B $3.5B$3.6B

$4.3B

7.6%

9.4%10.1%

10.9%

12.9%

~15.5%

2012 2013 2014 2015 2016 2019E

RO

S %

SALE

S (U

S$ B

illio

ns)

LII 2019 Targets

30% Incremental

Margin

8

6% Revenue

CAGR

Chart1

2.920120.076

3.220130.094

3.420140.101

3.520150.109

3.620160.129

4.32019E0.155

Series 1

Series 2

Series 3

SALES (US$ Billions)

ROS %

$2.9B

$3.2B

$3.4B

$3.5B

$3.6B

~$4.1B

$4.3B

$4.0

10.9%

12.9%

~14%

~15.5%

Sheet1

Series 1Series 2Series 3

2011$2.87.0%

2012$2.97.6%

2013$3.29.4%

2014$3.410.1%

2015$3.510.9%

2016$3.612.9%

2019E$4.315.5%

Designed-Out Costs

9

Low-Cost Sources

LII Material Cost Reduction

Old

Computational Analytics

Advanced Heat Exchanger Technology

Material Substitution (Copper to Aluminum)

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10

Leveraging Technology Controls

Dealer Apps Homeowner Apps

11

Leveraging Technology E-Commerce

E-Commerce Platforms

12

LII Overview

Business Segment Review

Financial Guidance

13

Product Glamour shot

Factory Glamour shot

RDC Glamour shot

$1,376

$1,583

$1,737 $1,867

$2,001

7.5%

11.4%

13.6%

14.9%

17.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

$0

$1,500

2012 2013 2014 2015 2016

ROS

%

SALE

S (U

S$ M

illio

ns)

Residential Heating & Cooling Segment Revenue & ROS

Replacement

NC

LII Residential Sales

Allied

Lennox

NC

Replacement

Allied

Lennox

% HVAC Sales

New Construction

Replacement

14

2%

11%

8%

1%

6%Mid

SingleDigits

0%

5%

10%

15%

20%

2012 2013 2014 2015 2016 2017E

North America Residential Market

Source: Industry data and company estimates

% Y-O-Y Change in Units

15

New Construction

Replacement Market

Positive Mix

Summer Heat Y-Y

Comparison

Macroeconomic / Political Uncertainty

Chart1

0.02

0.11

0.08

0.01

0.06

0.05

6%

MidSingleDigits

~6%

MidSingle Digits

Sheet1

040520082009201220132014201520162017E

ROS8%11%(11%)(8%)2%11%8%1%6%5%

16

Brands Consumer Contractor Distributor

Independent

How LII Residential Goes to Market

Company Owned

17

2017 Tgt

Residential PartsPlus Strategy Number of PartsPlus Stores

62 76

108

136 161

186 209

235

0

325

2010 2011 2012 2013 2014 2015 2016 2017E 2020Vision2020

Vision

Physical Distribution Up ~280% over 7 Years

2010 2011 2012 2013 2014 2015 2016 2017E

18

Significant Growth Opportunity Remains with PartsPlus Strategy

Target market for store is 30-minute

drive radius

Current footprint of stores supports 35% of total market with target

coverage

PartsPlus Current Market Penetration

19

2017 Tgt

Residential PartsPlus Strategy Number of PartsPlus Stores

Physical Distribution Up ~425% over 10 Years

62 76

108 136

161 186

209 235

2010 2011 2012 2013 2014 2015 2016 2017E 2020Vision

2010 2011 2012 2013 2014 2015 2016 2017E 2020 Vision

325+

Distribution

Marketing

Digital Tools HVAC Contractor

LII Dealer Support is a Differentiator

20

Training

Smart Product

21

Residential Industry Leading Products

Continued Investment in Industry Leading Products

485810

1,100

1,800

2,900

2009 2011 2013 2015 2017E

Saltillo Mexico Factory Labor Hours Worked (000s)

~ $6M Incremental EBIT in 2017

22

Residential Mexico Strategy

Chart1

485

810

1100

1800

2900

Sheet1

20092011201320152017E

sales485810110