Allegion Plc · NYSE:ALLE

Allegion — Investor Day (March 2015)

93 slides from Allegion's investor day presentation, Mar 9, 2015

1. Slide 1: Allegion: Pioneering Safety Around the World

   2015 Investor & Analyst Day Allegion: Pioneering Safety Around the World New York, New York March 9, 2015

2. Slide 2: Safe Harbor

   Safe Harbor This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's 2015 financial performance, the Company's growth strategy, the Company's capital allocation strategy, the Compa

3. Slide 3: Agenda: 2015 Investor & Analyst Day

   Agenda: 2015 Investor & Analyst Day Overview Dave Petratis U.S. Commercial Construction Growth Outlook Robert Rourke, L.E.K. Consulting LLC Innovation Todd Graves 15-Minute break; Product tables open Americas Tim Eckersley Asia Pacific William Yu EMEIA Lucia Moretti Finance Overview Patrick Shannon

4. Slide 4: Overview

   2015 Investor & Analyst Day Allegion: Pioneering Safety Around the World Overview Dave Petratis

5. Slide 5: Our vision and purpose

   Our vision is to make the world safer as a company of experts, securing the places where people thrive Our purpose is to create peace of mind by pioneering safety and security 5

6. Slide 6: Allegion Overview

   Allegion Overview  A leading global provider of security products and solutions  Serving residential and non-residential end markets  Strong brands with leading market positions  Industry leading EBITDA margins  High level of cash conversion performance  Broad distribution network  Balanced a

7. Slide 7: Global Reach

   Global Reach $2,118 Million in Revenue 7,000+ Channel Partners 7

8. Slide 8: Our Brands

   Our Brands Enterprise Brand Strategic Brands A Long Legacy of Excellence 8

9. Slide 9: Our 2014 Accomplishments

   Our 2014 Accomplishments Revenue Product Innovation  $2.12 billion  Schlage TouchTM  ENGAGETM Technology  Organic growth1 up 5.1%  Von Duprin Ax & QEL  China-SEL Electronic Anti-Burglary Adjusted EPS2 Lock  $2.49 – exceeding consensus estimates EMEIA Progress  Growing electronics and Interfl

10. Slide 10: Key Industry Trends

    Key Industry Trends Trends Opportunities  Increased security requirements 1  Urbanization in emerging markets Global security needs continue to increase  Construction activity in mature markets  Increased emphasis of product design in marketplace 2  Growth of electronic product market Electroni

11. Slide 11: Market Expectations

    Market Expectations Region Markets Americas  U.S. non-residential markets growing low single digit  Commercial new construction growth continues; institutional segment improving  U.S. residential up mid single digit driven by both builder and big box segments EMEIA  Southern security markets rem

12. Slide 12: Competitive Position

    Competitive Position Key Allegion Category/Position Brands Key Competitors Security Products: North America Market Leader Security Products: Europe #1 in Italy #2 in France #3 in UK Workforce Management #2 in Germany Public Systems Integration Video Analytics #3 in China 12

13. Slide 13: Key Strategies

    Key Strategies Expand in Innovation in Existing & Opportunistic Core Markets New Product Categories Acquisitions Enterprise Growth in Excellence Emerging Markets 13

14. Slide 14: Organic Growth Investments

    Organic Growth Investments Innovation Channel Management Infrastructure Spending (New Products) & Demand Creation Disciplined Investment Process to Accelerate Revenue & Earnings 14

15. Slide 15: Strategies by Region

    Strategies by Region Growth in Strategy Expand Enterprise Opportunistic Innovation Emerging Focus Areas in Core Excellence Acquisitions Markets Americas  Core expansion  Organic innovation  M&A EMEIA  Operational improvements  Channel / go to market transformation Asia  Organic Pacific innovat

16. Slide 16: Enterprise Excellence: A Learning Organization

    Enterprise Excellence: A Learning Organization 1 Become recognized for world-class channel management 2 Innovate with convergence of mechanical heritage and electronic technology 3 Capitalize on Allegion’s global presence and capabilities to improve product management and delivery 4 Work toward glob

17. Slide 17: Capital Deployment

    Capital Deployment Investment in Growth  New product development  Channel capability  Infrastructure M&A  Capability established  Acquire with a disciplined approach Shareholder Distribution $  Share repurchase - $50 million in 2014 Executing a Flexible & Balanced Capital Deployment Strategy 1

18. Slide 18: Summary: Allegion Positioned for Long-Term Success

    Summary: Allegion Positioned for Long-Term Success  Exposure to recovering markets  Strong business fundamentals  Good organic growth opportunities  High leverage on incremental volume  Consistent level of cash conversion performance Good Year One… Great Opportunity Ahead. 18

19. Slide 19: Innovation

    2015 Investor & Analyst Day Innovation Todd Graves

20. Slide 20: Innovation Capabilities

    Innovation Capabilities Strong Engineering Heritage  Mechanical and Domain Expertise  Rapidly Growing Electronics and Software Capabilities Global Coverage  Strategic Design Capabilities  On-Site Production Support Developing Global Technology Platforms Optimized for Local Markets 20

21. Slide 21: Engineering, Innovation & Technology Vision

    Engineering, Innovation & Technology Vision Global Platforming Innovation to Drive “Easy to … Install, Growth Integrate, Operate” Quality Through World Class People, Reliability & Processes & Tools Sustainability 21

22. Slide 22: Key Technology Trends

    Key Technology Trends Ubiquitous Mobile Computing Low Power Communications 1 Cloud Services Internet of Things 22 1The Bluetooth logo mark is the property of Bluetooth, SIG, Inc. All rights reserved.

23. Slide 23: Disruptive Innovation

    Disruptive Innovation Trailblazer Innovation Tournament:  Over 100 employees on 31 teams, over 70% outside the U.S.  Regional winners showcased at the Allegion Leadership Meeting Innovation Fridays:  Employees encouraged to spend 10% of their time on innovation  Numerous technologies developed a

24. Slide 24: Mechanical Innovation

    Mechanical Innovation Classroom Security Safety Innovations Electrified Mortise Lock  Highly visible indicator: 180  Only exit device to meet new  Replaced solenoid with motor degrees – patent pending 5lb force standard in California  Supercapacitor technology  Request to exit triggered by  Pa

25. Slide 25: Commercial Electronics Innovation

    Commercial Electronics Innovation eSIGNO aptiQ Mobile NDE with Engage  CISA hospitality solution  Secure credentials deployed  Easy to install – patented via the cloud features  Patented electronic privacy feature  NFC technology  No special door prep  Euro and ANSI standard  Mobile device b

26. Slide 26: Residential Electronics Innovation

    Residential Electronics Innovation Schlage Touch Schlage Connect Schlage Sense  Innovative keypad and  Control from anywhere via  BLE connectivity lighting features home automation provider  Easy set-up with the Schlage  Standalone electronic lock –  Standard Z-wave Sense mobile app PIN code a

27. Slide 27: Intellectual Property

    Intellectual Property Protecting Our Innovation Assets  Over 1,000 trademark registrations Invention Disclosures and applications in 105 countries Patent Applications Patents Issued  Over 300 active U.S. patents  Over 350 foreign patents and pending patents  6x increase in invention and patent 2

28. Slide 28: Vitality

    Vitality Increase in Vitality from Early Investments  Vitality Index is revenue from new products (last 36 months) as a percentage of total revenue  Vitality slowly declined from 2008 to 2013  Investments started in 2014 will rapidly increase vitality to well over 20% Early Allegion Investments i

29. Slide 29: Allegion: Building an Innovation Leader

    Allegion: Building an Innovation Leader Lead the Industry Deliver Technology Platforms Build Capabilities 29

30. Slide 30: Americas

    2015 Investor & Analyst Day Americas Tim Eckersley

31. Slide 31: Who We Are

    Who We Are  Industry-leading brand equity, portfolio and installed base  Industry leader in codes, opening applications and specification writing  Leading preference in both consumer and commercial markets  Prominent channel position in all industry segments  Leader in commercial and residentia

32. Slide 32: New in 2014: Product Highlights

    New in 2014: Product Highlights Schlage NDE Locks Schlage Schlage Matte Black Von Duprin + ENGAGETM Touch Finish Expansion Ax Device Von Duprin 4200 Von Duprin, Schlage Schlage Von Duprin Electric Strike Decorative Levers Sacramento Lever QEL Option 32

33. Slide 33: Outlook for Markets Served

    Outlook for Markets Served Market Market Construction Spending Business Market Trends Size1 Growth2 % to Prior Peak3  Institutional segment slowly rebounding  Continued growth in commercial and multi-family Commercial Low 73% of 2008 Hardware  Continued reliance of code and application $3.3 - $4.

34. Slide 34: Expand in Core Markets

    Expand in Core Markets Channel Management Select Motivate Train Evaluate  Formal sales channel management process Multiple Go-to-Mark Channels  New Construction Projects  Select and motivate most capable channel  Discretionary R&R Aftermarket partners  Retail / e-Commerce  Channel segmentation

35. Slide 35: Expand in Core Markets: Commercial Retrofit & Renovation

    Expand in Core Markets Commercial Retrofit & Renovation Strategy Summary 2015-2016 Outcomes  Business model to win in non-specified  Dedicated business development team retrofit and renovations  National Tenant Improvement Program  Partner with select channel players who ‒ Channel partners selec

36. Slide 36: Expand in Core Markets: Residential Category Expansion

    Expand in Core Markets Residential Category Expansion Strategy Summary 2015-2016 Outcomes  Transform residential purchase behavior from  New Big Box merchandising and marketing functional need to inspired style and design  New packaging  Consumer pull strategy to expand the category  New Lever

37. Slide 37: Innovation: Commercial Electronics Platform Growth

    Innovation Commercial Electronics Platform Growth Strategy Summary 2015-2016 Key Outcomes  Drive step change in total cost to electrify  New AD-Series, NDE, ENGAGE™ Platform openings  New ENGAGE™ mobile app and cloud structure enhances connectivity – starting with NDE-Series  Open platform deliv

38. Slide 38: Innovation: Residential Electronics Platform Growth

    Innovation Residential Electronics Platform Growth Strategy Summary 2015-2016 Key Outcomes  Early innovator in the connected home  Expand Schlage Touch™ access channels space (2009) – broadest portfolio of products  New Schlage Sense™ – Apple HomeKit compliant  Open architecture – best-in-class

39. Slide 39: Growth in Emerging Markets: Latin America

    Growth in Emerging Markets Latin America Regional Growth Strategy Summary 2015-2016 Key Outcomes  Establish market-driven product portfolio  New product introductions sourced globally and supply chain  Grow Colombia export business across region  Expand footprint through acquisition  Expand sal

40. Slide 40: Enterprise Excellence

    Enterprise Excellence Building Sustainable Capability - Customer Experience Maturity 2015-2016 Key Outcomes  Front-end order fulfillment transformation  Value-added business transformation Connect Integrate analytics Define consistent Observational  Channel and brand Journey mapping Customer Coll

41. Slide 41: Opportunistic Acquisitions

    Opportunistic Acquisitions Growth Through Acquisitions Pipeline Development Deliver Strategic Acquisitions  Strategic plan with defined growth opportunities  Engaged industry leader Zero International Inc. – Product gaps, emerging markets and technologies  Deal signed in February – expect close A

42. Slide 42: Americas Summary

    Americas Summary  Expand in core markets with prominent channel management and new channel-led business strategy  Grow residential lock category with new style and design strategy  Accelerate commercial and residential electronics with ease-of-connectivity, innovation and technology alliances  E

43. Slide 43: Asia Pacific

    2015 Investor & Analyst Day Asia Pacific William Yu

44. Slide 44: Who We Are

    Who We Are Recognized Leader in Premium Market:  Strong brand image in China North Asia premium/high-end segment Mainland  60% from system integration and 40% from hardware in portfolio South East  Leading market position in Asia New Zealand (NZ) Our Team Australia &  Landmark project reference

45. Slide 45: What We Sell

    What We Sell Mechanical Door Closer Exit Device Accessory Lock Electronic Electromechanical System Integration Lock Lock (SI) 45

46. Slide 46: Market Overview: Hardware (Asia Pacific)

    Market Overview: Hardware (Asia Pacific) 2013-2020F Asia Pacific Hardware Addressable Market Million U.S. $ • China: The Growth Leader CAGR 15-20F − Continuous economic growth China 12% 4,442 SEA 5% − Urbanization with moderate residential ANZ 3% 536 investment growth (~8%) NA 1% AP Total 7% − Incre

47. Slide 47: Strategic Priorities

    Strategic Priorities  Innovate product strategy to fulfill local customer needs in mid-tier segment  Accelerate residential market growth through product management and channel expansion  Leverage global expertise of demand creation for key commercial verticals  Maintain stable growth of China S

48. Slide 48: Mid-tier Segment Product Strategy

    Mid-tier Segment Product Strategy China Market Segment Product Strategy (Total Market size: U.S. ~$10B) • Expand product portfolio for local Premium (2%) offerings with local R&D and High (6%) manufacturing capabilities • Standard product offerings and • Substantial market solutions customized for k

49. Slide 49: Expand Core Business: Residential

    Expand Core Business: Residential Market Opportunities  Attractive U.S. ~$500M addressable market  Mega residential developers call for customized with double-digit growth products and total solution  Market driven by increased E-lock adoption − From product specification to after-sales services

50. Slide 50: Leverage Global Expertise

    Leverage Global Expertise Sophisticated Expertise Emerging Market Differentiator & Landmark Projects  Trusted partners to write thousands of Greater Market Potential specs annually for both international and  China to be the world’s largest hospitality market with local commercial companies ~6M ho

51. Slide 51: Acquisition Capability

    Acquisition Capability Allegion Benefits Clear M&A Strategy Established Capabilities  Potentially multiple  China: Expand project pipeline  Capable deal team structure acquisitions to establish scale to supplement organic growth and expertise across product, channel and initiatives  Disciplined

52. Slide 52: Establishing Industry Standards

    Establishing Industry Standards Academically Professionally Publicly Socially Chinese People’s Political Consultative Conference 1st Safety & Security 1st Safety & Security China 1st Healthcare Museum Proposal to CPPCC 1st Textbook on Architecture Security Code Security Technology Social Run for All

53. Slide 53: Core Business Growth: China Security Integration

    Core Business Growth: China Security Integration Customer-Oriented Market Expansion Outstanding Service Cash Improvement Innovation  Expansion into new  Reshape service growth  Establish independent core  Accelerate project verticals by establishing engine to increase service knowledge base and

54. Slide 54: Building an Effective Organization

    Building an Effective Organization Organization Development Process Optimization Talent Training  Set up dedicated residential  Optimize product  Developed technical training organization in China development and programs, like service certificates management process with and LEAN operation, for

55. Slide 55: Asia Pacific Summary

    Asia Pacific Summary  Significant market potential in China and South East Asia in terms of size and growth, especially from mid-tier segment and residential markets  Strategic priorities summary  Innovation in both existing and new product categories  Fast development of residential verticals 

56. Slide 56: EMEIA

    2015 Investor & Analyst Day EMEIA Lucia Veiga Moretti

57. Slide 57: Who We Are

    Who We Are  Strong local brands with history of innovation  Industry-leading portfolio and installed base  Leading market position in South Europe and France in mechanical locking  Leading market position in Germany in integrated workforce management solutions Europe: Middle East: 57

58. Slide 58: What We Sell

    What We Sell Hospitality/ Electro-Mechanical Integrated Sanitary Ware/ Electronic Access Security Hardware Control Solutions Trims Brands Brands Brand Brand 58

59. Slide 59: Where We Play: EMEIA Market

    Where We Play: EMEIA Market Market Size Electro-Mechanical Security Hardware $3.5B Electronic Access Control $2B Workforce Management Solutions $1B $1.5B Sanitary Ware / Trims Moderate Good 2012-2014 Growth Flat growth growth Opportunity in an $8B Market 59 *Source: IHS Global Insights and internal

60. Slide 60: EMEIA Strategic Priorities

    EMEIA Strategic Priorities Strategic Priorities Strategic Foundations  Selective exit from most commoditized streams  Right sizing of cost structure and overhead Enterprise Recover Profitability  Make vs. Buy Excellence  Increased efficiency through lean manufacturing and common systems  Shift

61. Slide 61: Project Voyager: EMEIA Transformation

    Project Voyager: EMEIA Transformation 2014 2015 2016 & Beyond Convergence of Mechanical Heritage & Business Transformation Build Specification & Electronic Technologies Focused Demand Creation around Vertical needs Back-office Business offic Consolidation Units & Leadership Product e > 10 % Platform

62. Slide 62: Project Voyager: 2014 Take-Off

    Project Voyager: 2014 Take-Off  Exchanged Randi for equity position with Eco Schulte Business  ✔ Closed non-Germanic Interflex Branches Portfolio Optimization  Exited India  Divested UK Doors & Services Focused Business Units & Leadership  Set up new structure with Business Units ✔ ✔ Right Cost

63. Slide 63: Project Voyager: Demand Creation

    Project Voyager: Demand Creation Specification & End-User Engagement  Influence the market through specification  Develop connected solutions for doors  Focus on target vertical markets Increase Pull of Value Adding Solutions 63

64. Slide 64: Project Voyager: Common Systems & Processes

    Project Voyager: Common Systems & Processes Developing a Modern & United Set of Process Tools  Superior Customer Experience  Improved interactions with all touch points  Shorter lead times, visibility of orders and automation  Simplified Intercompany Transactions  Single Regional Platform for P

65. Slide 65: Project Voyager: Product Platforming

    Project Voyager: Product Platforming Enabling Consolidation of Parts & Leverage of Core Assets  Enhance the Customer Experience  Reduce complexity, time to market and inventory  Increase quality and ease of use  Capitalize Allegion Global Technologies  EngageTM Technology, door closers and exit

66. Slide 66: Project Voyager: Make vs. Buy

    Project Voyager: Make vs. Buy Increase Outsourcing to Fewer Strategic Suppliers, Mainly in Best Cost Countries (BCC)  Grow/Fix/Exit Strategy by SKU  Consolidate Suppliers Portfolio  Increase Efficiency  Shorter lead times and increased flexibility Improve Cost Base & Customer Satisfaction 66

67. Slide 67: Project Voyager: Optimized Integrated Supply Chain

    Project Voyager: Optimized Integrated Supply Chain HCC in West Europe Production of High added value customized products Key Driver: Speed & Service BCC in EU / close to EU border Late configuration Production / Sourcing of driver Value Mid-high added value products Core technology BCC in Far East M

68. Slide 68: Business Portfolio: Growth Strategy

    Business Portfolio: Growth Strategy Electro-Mechanical Integrated Hardware Solutions • Balanced push/pull Hospitality • More of a software and strategy with enhanced service provider end-user value • Int’l growth through: • Portfolio / channel - Global Key Accounts transformation -VAR network Commer

69. Slide 69: Interflex: Leverage Globally

    Interflex: Leverage Globally Global Account Management Value-Added Resellers  Large enterprise customers expanding globally  Development of international system integrators into value-added resellers  Centralized account team (sales and solution architects)  Dedicated team to serve external inte

70. Slide 70: EMEIA Summary

    EMEIA Summary Project Voyager: Transform, Reshape, Resize  Transformation in Progress  Components to Solutions  Demand Creation  Common Processes and Systems  Assets Optimization 70

71. Slide 71: Finance Overview

    2015 Investor & Analyst Day Finance Overview Patrick Shannon

72. Slide 72: Strong Track Record of Financial Performance

    Strong Track Record of Financial Performance  Market fundamentals improving  Average EBITDA margins of 20.4% last 15 years; industry leader  Low level of capital requirements  High level of cash conversion  Balanced and flexible capital allocation strategy Well-Positioned Going Forward 72

73. Slide 73: Historical Adjusted EBITDA Margins

    Historical Adjusted EBITDA Margins (1) EBITDA defined as operating income plus depreciation and amortization. (2) EBITDA Margin for 2008-2013 calculated using revenue adjusted for Asia joint venture order flow change. 2000 - 2007 represents the Security & Safety or Security Technologies segment as r

74. Slide 74: Full Year 2014 Allegion ACF

    Full Year 2014 Allegion ACF Available Cash Flow1 ($millions)  2014 FY ACF is $1.6 million lower than prior year  ACF decrease due to higher capital expenditures of $31.3 million from new product development, information systems and spin related projects, mostly offset by improved working capital W

75. Slide 75: Strong Cash Flow Generation

    Strong Cash Flow Generation ($ millions) 2015 Target ~95% 2016 & Beyond ~100+% Target ACF 100+% of Net Earnings Over Time (1) ACF is cash from continuing operating activities less capital expenditures (2) 2013 ACF% is based on net earnings from continuing ops adjusted for $137.6M goodwill impairment

76. Slide 76: 2014 Capital Structure & Liquidity

    2014 Capital Structure & Liquidity December 31, 2014 Debt Maturity Profile ($ millions) Term Loan A ($ millions) Senior Notes Total Cash $ 291 670 Total Debt $ 1,265 300 Debt/Adj. EBITDA1 2.9x 49 49 98 98 0 2015 2016 2017 2018 2019 2020 2021 • Credit facility refinanced in October 2014 S&P Rating BB

77. Slide 77: Effective Tax Rate Update

    Effective Tax Rate1 Update 38.4% 28.6% ~22% Aspirational Goal <20% 2013 2014 2015 (fcst) 2016 (fcst) Accelerating Reduction in Effective Tax Rate (1) Effective tax rate adjusted for spin costs and other charges; Updated to reflect UK door business divestiture; See appendix for non-GAAP reconciliatio

78. Slide 78: Capital Allocation Strategy

    Capital Allocation Strategy Leverage Management  Target 2.75-3.25x of gross Debt/Adj. EBITDA  Amendment of existing credit facility in October; lowers cost of capital, continues to  End 2014: 2.9x of gross Debt/Adj. EBITDA provide liquidity and flexibility to grow business Organic Growth Sharehol

79. Slide 79: Organic Investments

    Organic Investments New Product Development Channel Management Infrastructure Engineering/ Feet on the IT Systems R&D Street Tax Product Demand Enterprise Launches Creation Excellence  Accelerate Revenue  Reduce Cost Structure  Investment Return/Realization: 1-3 years Standardized Process,

80. Slide 80: Incremental Investments

    Incremental Investments $ Investment Model  2014-2015: Investment catch up EBITDA  2015 a high point for incremental investment  2016 an inflection point – acceleration of margin improvement begins Incremental  2017+ incremental investment Investment requirements stabilize 2014 2015 2016 2017 In

81. Slide 81: Opportunistic Acquisitions Strategic Framework

    Opportunistic Acquisitions Strategic Framework  6 deals signed Execute  Corporate/regional  Integrations on track Transactions Build teams built out Capabilities Robust Pipeline  Monthly executive Standardized  Standardized reviews Processes diligence/integration toolkits Smart Transactions, We

82. Slide 82: Allegion M&A Platforms / Thresholds

    Allegion M&A Platforms / Thresholds Platforms Key Acquisition Criteria  Aligned with strategic direction and in our core − Strong business and market fundamentals Emerging Markets − Targets with leadership position and ability to scale Emerging Technology − Clear synergy opportunities Expand Produc

83. Slide 83: Disciplined Acquisition Process

    Disciplined Acquisition Process Strategic Standardized Diligence Integrate: Stabilize, M&A Cycle Planning & & Integration Assimilate, then Insight Approaches Accelerate  Clear  Standard tools  Clear business category/target  Repeatable processes / ownership and prioritization capabilities accoun

84. Slide 84: Case Study: Fire & Security Hardware

    Case Study: Fire & Security Hardware Investment Rationale First 11 Months: Results Company Strengths  FSH revenue up 25% in 2014  Leading electro-mechanical  Margins maintained at pre- product provider in Australia transaction levels  Strong intellectual property  FSH team fully integrated; por

85. Slide 85: 2015 Guidance

    2015 Guidance Organic Revenue Growth1 Americas EMEIA Asia Pacific Total Total: -3% to -2% Total: -11% to -9% Total: 5% to 7% Total: -4% to -3% Organic: 4% to 5% Organic: -2% to Flat Organic: 6% to 8% Organic: 3% to 4% Earnings Per Share 2014 Reported EPS from Continuing Operations 2014 Reported EPS

86. Slide 86: Financial Targets: Before Capital Deployment

    Financial Targets: Before Capital Deployment Three Year Financial Target Organic Revenue  Improving market fundamentals 4 to 6% CAGR Growth(1)  Incremental investments driving growth above market EBITDA Margin + 200 to 300 bps  Leverage on incremental volume  Net of investments Organic EPS >12%

87. Slide 87: Capital Deployment

    Capital Deployment Available Cash Flow 2015-2017: ~$900M  Debt amortization Debt Amortization ~22% Strategic  Acquisitions and Investment incremental Dividends ~55% shareholder ~15% distributions  Annualized dividends subject to board approval Share Repurchase ~8%  Share repurchase to offset dil

88. Slide 88: Wrap Up

    2015 Investor & Analyst Day Allegion: Pioneering Safety Around the World Wrap Up Dave Petratis

89. Slide 89: Allegion Summary

    Allegion Summary  Executing strategy, delivering on commitments  Delivering solid organic revenue growth  Increasing operating margins net of incremental investments  Reduction in effective tax rate  Continuing to invest in new products and channel development  Driving EMEIA profitability impr

90. Slide 90: Appendix

    Allegion Investor Day Appendix

91. Slide 91: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation ( in USD Millions) 2008 2009 2010 2011 2012 2013 2014 Revenue $ 2,413.9 $ 2,006.7 $ 1,942.4 $ 1,998.3 $ 2,023.3 $ 2,069.6 $ 2,118.3 Asia Joint Venture Revenue (65.3) (64.5) (68.9) (58.6) (78.0) (52.0) 0.0 Adjusted Revenue 2,348.6 1,942.2 1,873.5 1,939.7 1,945.3 2,017.6

92. Slide 92: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 92 Year Ended December 31, 2014 Year Ended December 31, 2013 Adjusted Adjusted Reported Adjustments (non-GAAP) Reported Adjustments (non-GAAP) Net revenues $ 2.1183 = $ - S$ 21183 $ 20696 $ (52.0) » S$ 2,017.6 Operatinaincome 326.3 697 & 396.0 240.8 127.7 @ 368.5 Operating ma

93. Slide 93: About Allegion

    About Allegion™ Allegion (NYSE: ALLE) is a global pioneer in safety and security, with leading brands like CISA®, Interflex®, LCN®, Schlage® and Von Duprin ®. Focusing on security around the door and adjacent areas, Allegion produces a range of solutions for homes, businesses, schools and other inst

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