Allegion Plc · NYSE:ALLE
Allegion — Q4 2020 Earnings Presentation
21 slides from Allegion's earnings presentation, Feb 16, 2021
Slide 1: Fourth-Quarter 2020 Financial Results
Fourth-Quarter 2020 Financial Results February 16, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including statements regarding the potenti
Slide 3: 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, and adjust
Slide 4: 2020 Highlights
2020 Highlights Strong revenue performance despite difficulties posed by COVID-19 pandemic; Revenue Americas residential and EMEA performed well in the 2nd half Adjusted Adjusted operating income margins increased 20 bps for the year, with cost OI Margin¹ management actions mitigating the volume-rel
Slide 5: Fourth-Quarter 2020 Financial Summary
Fourth-Quarter 2020 Financial Summary Revenue1 Adjusted OI Adjusted YTD ACF1 $Millions Margin1 EPS1 $Millions +1.1% +150 bps +16.4% +4.9% $719.5 $727.3 $443.2 22.5% $422.6 $1.49 21.0% $1.28 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 ▪ Organic revenue decline of 0.6% ▪ Price, productivity, FX an
Slide 6: Fourth-Quarter 2020 Allegion EPS Performance
Fourth-Quarter 2020 Allegion EPS Performance $0.02 $0.01 $1.49 $0.06 $0.13 $0.01 $0.42 $1.28 $1.01 $0.48 $0.86 Q4 19 Reported Restructure / Q4 19 Adjusted Operations Tax Rate Share Count Interest / Other, Investments Q4 20 Adjusted Restructure / Q4 20 Reported EPS Impairments / EPS Net / NCI EPS M&A
Slide 7: Fourth-Quarter 2020 Revenue Results
Fourth-Quarter 2020 Revenue Results $800.0 10.0% 5.8% 6.4% $750.0 3.0% 4.3% 3.5% 5.0% $700.0 -0.6% Q4'20 Q4'20 FY'20 FY'20 0.0% $650.0 Reported Organic1 Reported Organic1 -3.4% Growth Growth Growth Growth $600.0 -5.0% Americas -1.0% -0.7% -4.6% -4.2% $550.0 -10.0% EMEA 10.5% 3.1% -3.1% -5.1% $500.0
Slide 8: Fourth-Quarter 2020 Americas Results
Fourth-Quarter 2020 Americas Results Revenue1 Adjusted Operating Income1 $Millions $Millions -1.0% -3.5% $526.3 $521.2 $153.9 $148.5 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 Adj OP Margin 29.2% 28.5% Q4 Revenue Performance Adj EBITDA % 30.9% 30.2% ▪ Organic revenue decline of 0.7% ▪ Solid price realizati
Slide 9: Fourth-Quarter 2020 EMEA Results
Fourth-Quarter 2020 EMEA Results Revenue1 Adjusted Operating Income1 $Millions $Millions +10.5% +49.1% $149.6 $165.3 $24.9 $16.7 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 Adj OP Margin 11.2% 15.1% Q4 Revenue Performance Adj EBITDA % 16.8% 20.4% ▪ Organic revenue growth of 3.1% ▪ Organic growth driven by s
Slide 10: Fourth-Quarter 2020 Asia-Pacific Results
Fourth-Quarter 2020 Asia-Pacific Results Revenue1 Adjusted Operating Income1 $Millions $Millions -6.4% +331.6% $43.6 $8.2 $40.8 $1.9 Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20 Adj OP Margin 4.4% 20.1% Adj EBITDA % 7.3% 23.8% Q4 Revenue Performance ▪ Organic revenue decline of 11.9% Q4 Adjusted Operating Ma
Slide 11: 2020 Allegion ACF
2020 Allegion ACF Strong cash generation; Liquidity stable Available Cash Flow1 Working Capital2 & Cash Conversion Cycle (CCC)3 $Millions $Millions $443.2 $422.6 Working Capital % of Revenue Cash Conversion Cycle 7.5% 64.8 64.6 6.7% Full Year Full Year 2019 2020 ▪ Higher adjusted net earnings ▪ Lowe
Slide 12: Strategic investments position us for long-term growth
Strategic investments Vision Seamless access and a safer world position us for long-term Allegion creates value by securing people and assets with Strategy seamless access wherever they reside, work and thrive growth as global markets rebound Expand in Deliver Core New Value Markets in Access Be the
Slide 13: Allegion International
Allegion International Seamless access and Focused on the growth our business opportunities fundamentals of electronics This business unit is stand strong in Allegion International designed to drive speed markets and efficiency, simplify our Led by Committed to operating segments and customer Tim Ec
Slide 14: Full-Year 2021 Allegion Revenue Outlook
Full-Year 2021 Allegion Revenue Outlook International markets recovering, Americas residential remains strong; Softness in Americas non-residential Region Revenue Projection1 Markets Americas ▪ Strength in residential expected to continue Total: -4% to -3% ▪ Non-residential new construction expected
Slide 15: Full-Year 2021 Allegion EPS Outlook
Full-Year 2021 Allegion EPS Outlook Adj. EPS decline of ~5% to 8%; ACF $400–$420 million 2020 Reported EPS $3.39 Adjustments¹ $1.72 2020 Adjusted EPS $5.11 Operational Performance (Reduced Volume / Mix / Inflation) ~($0.14) to ($0.29) Adj. Op. Income EPS impact ($0.24) to ($0.39) or Investments ~($0
Slide 16: Summary
Summary ▪ Q4 revenue growth of 1.1%; Organic revenue¹ decline of 0.6% ▪ Q4 adjusted operating margin¹ of 22.5%; Up 150 bps vs prior year ▪ Adjusted Q4 EPS¹ of $1.49 or +16.4% growth vs prior year ▪ 2021 full-year revenue outlook ▪ Total revenue decline of 0.5% to 1.5% ▪ Organic revenue decline of 1.
Slide 17: Appendix
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Slide 18: Full-Year 2020 Financial Summary
Full-Year 2020 Financial Summary Revenue1 Adjusted OI Adjusted YTD ACF1 $Millions Margin1 EPS1 $Millions -4.7% +20 bps +4.5% +4.9% $2,854.0 $5.11 $4.89 $2,719.9 $443.2 $422.6 20.8% 21.0% FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 ▪ Organic revenue decline of -4.8% ▪ Price, productivity, FX and
Slide 19: Full-Year 2020 Allegion EPS Performance
Full-Year 2020 Allegion EPS Performance $0.08 $0.17 $0.17 $5.11 $0.63 $4.89 $0.18 $0.02 $4.26 $3.39 $1.72 Dec YTD 19 Restructure / Dec YTD 19 Interest / Other, Tax Rate Share Count Operations Investments Dec YTD 20 Restructure / Dec YTD 20 Reported EPS M&A / Adjusted EPS Net / NCI Adjusted EPS M&A /
Slide 20: Pro-Forma International
Pro-Forma International RECONCILIATION OF GAAP TO NON-GAAP REVENUE AND OPERATING INCOME (In millions) Three Months Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 As Reported Margin As Reported Margin As Reported Margin As Reported Margin Allegion International Net revenues (
Slide 21: 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