Slide 1: Q2-2023 Earnings Call
Q2-2023 Earnings Call NYSE: ALLE July 26, 2023
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This presentation contains "forward-looking statements," which are statements that are not historical facts, including, but not limited to, statements related to the Full-Year 2023 Outlook, and statements regarding inflation, electronics growth, the c
Slide 3: Allegion Delivers Strong Second Quarter
Allegion Delivers Strong Second Quarter Continued margin expansion (Adjusted OI margin +130 bps) Electronics fueling revenue growth (~40% in Americas) Stable end markets Increasing full-year adjusted EPS outlook ($6.70 to $6.80) 3 Q2-2023 Financial Results See press release for non-GAAP reconciliati
Slide 4: Vision and Strategy
Vision Enabling seamless access and a safer world Strategy Allegion creates value as a solutions provider of security and access Build on Deliver New Value Our Legacy in Access Be the Partner Operate with of Choice Excellence 4 Q2-2023 Financial Results
Slide 5: One Year In: Highly Strategic Combination
One Year In: Highly Strategic Combination First-year highlights: ▪ Revenue of ~$385M ▪ Operational EPS of ~$0.43 per share ▪ $0.11 accretive to adjusted EPS (including interest) Quickly returned to pre-acquisition net debt leverage ratios 2.9x (Q3 2022) x 2.1x (Q2 2023) *STANLEY ACCESS TECHNOLOGIES
Slide 6: Q2-2023 Financial Summary
Q2-2023 Financial Summary Revenue1 Adjusted OI Adjusted EBITDA Adjusted ACF1 $Millions Margin1 Margin1 EPS1 YTD +18.0% +130 bps +110 bps +23.1% +125% $912.5 $1.76 $190.1 22.2% 23.6% $773.1 20.9% 22.5% $1.43 $84.5 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 ▪ Organic revenue growth of
Slide 7: Q2-2023 Revenue Results
Q2-2023 Revenue Results $Millions 18.6% 15.0% 11.4% 6.4% 6.4% 5.6% $724 $773 $914 $862 $923 $913 Revenue Growth Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Reported Organic1 1 Current Quarter Revenue Prior Quarter Revenue Organic Growth % Americas Q2 23.8% 7.7% Q2 YTD 32.4% 14.7% Price Volume Or
Slide 8: Q2-2023 Allegion Americas Results
Q2-2023 Allegion Americas Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions +23.8% +190 bps +180 bps $727.2 28.3% 27.6% 29.4% $587.3 26.4% Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Ex-AT 26.4% 31.0% Ex-AT 27.6% 32.2% Q2 Revenue Performance ▪ Organic revenue growth of 7.7%; Price realization of 10
Slide 9: Q2-2023 Allegion International Results
Q2-2023 Allegion International Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions Flat +30 bps +40 bps $185.8 $185.3 13.3% 13.7% 11.0% 11.3% Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 Revenue Performance Q2 Adjusted Margin Performance ▪ Organic revenue decline of 1.0%; Price realization of 5.4%;
Slide 10: 2023 Allegion ACF / Leverage / Balance Sheet
2023 Allegion ACF / Leverage / Balance Sheet Available Cash Flow1 Working Capital2 Leverage $Millions $Millions $190.1 3.3 x 2.9 x 2.5 x $84.5 2.3 x 2.9 x 2.5 x 2.1x 1.7 x Q2 YTD Q2 YTD 2021 Q3 2022 Q4 2022 Q2 2023 2022 2023 Gross Debt/Adj EBITDA Net Debt/Adj EBITDA Capex $24.6M $40.0M Ex-AT 5.8% 6.
Slide 11: Full-Year 2023 Outlook
Full-Year 2023 Outlook Prior Outlook Current Outlook Americas: 15% to 17% Americas: 15% to 16% Reported Revenue International: -1% to 1% International: -1% to flat Total: 11.5% to 13.5% Total: 11.5% to 12.5% Americas: 7.5% to 9.5% Americas: 7.5% to 8.5% Organic Revenue International: -2% to flat% In
Slide 12: Allegion Delivers Solid First Half, Raises EPS Outlook
Allegion Delivers Solid First Half, Raises EPS Outlook Returned to high operating level Stable end markets Electronics is key growth driver
Slide 13: Allegion: Pioneering Safety
ALLEGION’ PIONEERING SAFETY
Slide 14: Appendix
ALLEGION’ PIONEERING SAFETY
Slide 15: Q2-2023 Allegion EPS Performance
Q2-2023 Allegion EPS Performance Access Technologies interest: ($0.09) Higher rates: ($0.01) Other, Net: $0.02 M&A: ($0.02) Restructuring: ($0.01) M&A: $0.03 Amortization1: ($0.12) Restructuring: $0.03 Inv. gain: ($0.03) Debt refinancing: $0.04 Amortization: $0.06 15 Q2-2023 Financial Results 1 Incl
Slide 16: Full-Year 2023 EPS Outlook Details
Full-Year 2023 EPS Outlook Details Prior Outlook Current Outlook 2022 Reported EPS $5.19 $5.19 Adjustments 1 $0.50 $0.50 Notes: Acquired Intangible Asset Amortization2 $0.30 $0.30 ▪ Operational 2022 Adjusted EPS As Recasted $5.99 $5.99 performance driving higher outlook Operational Performance (incl
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The company presents operating income, operating margin, net earnings and diluted earnings per share (EPS) on both a U.S. GAAP basis and on an adjusted (non-GAAP) basis, revenue growth on a U.S. GAAP basis and organic revenue growth on a non-GAAP basis, EBITDA, ad
Slide 18: About Allegion
About Allegion™ Allegion (NYSE: ALLE) is a global pioneer in seamless access, with leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Focusing on security around the door and adjacent areas, Allegion secures people and assets with a range of solutions for homes, busi