...October 30, 2023 We expect the service segment will remain solid and support credit metrics. Installed base growth and an ability to offset labor inflation with price increases have driven good organic segment growth since 2021. We have raised our expectations for segment profitability in 2023- 2025 as the company continues to benefit from pricing and productivity. Segment margin is on track to be 100 basis points higher this year than 2021. Although China is both the least profitable and fastest-growing geographic area the service segment serves, we believe Otis' growing service density in the country will offset the resulting margin pressure. The service segment's higher revenue and much greater profitability, relative to new equipment, should mitigate the softer demand we anticipate within the latter segment over the next year or two. A weak Chinese residential property sector and high U.S. interest rates will pressure new equipment segment revenue. Although we believe property sales...
