Allegion Plc · NYSE:ALLE
Allegion — Q3 2019 Earnings Presentation
17 slides from Allegion's earnings presentation, Oct 24, 2019
Slide 1: Allegion Third-Quarter 2019 Results
Allegion Third-Quarter 2019 Results October 24, 2019
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 Company
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: 2019 Third-Quarter Update
2019 Third-Quarter Update Strong Revenue Strong total top-line growth (5.2%) and organic growth (6.4%) in the quarter – Growth¹ driven by the Americas and EMEIA regions Electronics Americas electronics growth of 10% in the quarter Non-residential U.S. end markets remain healthy – continued strength
Slide 5: Third-Quarter Financial Summary
Third-Quarter Financial Summary 1 1 1 1 Revenue Adjusted OI Margin Adjusted EPS YTD ACF $Millions $Millions +5.2% +220 bps +19.5% +0.6% 23.1% $1.47 $748.3 $228.6 $230.0 $711.5 20.9% $1.23 Q3 18 Q3 19 Q3 18 Q3 19 Q3 18 Q3 19 Q3 YTD Q3 YTD 2018 2019 ▪ Organic growth of 6.4%, ▪ Price and ▪ Adjusted ope
Slide 6: Vision and Strategy
Vision Seamless access and a safer world Allegion creates value by securing people and assets with Strategy seamless access wherever they reside, work and thrive Deliver Expand New in Core Value in Markets Access Be the Capital Partner of Allocation Choice Enterprise Excellence 6 | Third-Quarter 201
Slide 7: Allegion Revenue Results
Third-Quarter 2019 Allegion Revenue Results Q3'19 Q3'19 Q3-19 Reported Organic1 Growth Growth Price 1.4% Americas 7.1% 7.2% Volume 5.0% EMEIA 2.5% 6.9% Organic 6.4% Asia Pacific -9.1% -4.8% Currency -1.2% Total 5.2% Total Allegion 5.2% 6.4% Strong organic growth partially offset by currency headwind
Slide 8: Allegion Results
Third-Quarter 2019 Allegion Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) +16.1% $149.0 $173.0 Q3 18 Q3 19 Adj Op Margin 20.9% 23.1% Adj EBITDA % 23.6% 25.7% Q3 Revenue Performance Q3 Adjusted Operating Margin +220 bps ▪ Organic revenue growth of 6.4% ▪ Solid operating levera
Slide 9: Allegion EPS Performance
Third-Quarter 2019 Allegion EPS Performance Q3 9 | Third-Quarter 2019 Results See press release for non-GAAP reconciliations
Slide 10: Americas Results
Third-Quarter 2019 Americas Results 1 Revenue 1 Adjusted Operating Income ($millions) ($millions) +13.8% $175.6 $154.3 Q3 18 Q3 19 Adj Op Margin 29.1% 30.9% Adj EBITDA % 30.8% 32.4% Q3 Revenue Performance Q3 Adjusted Operating Margin +180 bps ▪ Organic revenue growth of 7.2% ▪ Solid operating levera
Slide 11: EMEIA Results
Third-Quarter 2019 EMEIA Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) +17.6% $12.0 $10.2 Q3 18 Q3 19 Adj Op Margin 7.6% 8.7% Adj EBITDA % 13.6% 14.7% Q3 Revenue Performance Q3 Adjusted Operating Margin +110 bps ▪ Organic revenue growth of 6.9% ▪ Solid operating leverage on i
Slide 12: Asia-Pacific Results
Third-Quarter 2019 Asia-Pacific Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) +37.5% $4.4 $3.2 Q3 18 Q3 19 Adj Op Margin 6.8% 10.3% Adj EBITDA % 9.6% 12.9% Q3 Revenue Performance Q3 Adjusted Operating Margin +350 bps ▪ Organic revenue decline of 4.8% ▪ Continued strong produc
Slide 13: Allegion ACF
Third-Quarter 2019 Allegion ACF Available Cash Flow1 ($millions) $230.0 $230.0 $228.6 ▪ Increase in ACF driven by additional net $225.0 earnings mostly offset by increased $220.0 capital expenditures $215.0 $210.0 Q3 YTD 2018 Q3 YTD 2019 Working Capital2 & Cash Conversion Cycle (CCC)3 Working Capita
Slide 14: Full-Year 2019 Outlook
Full-Year 2019 Outlook Revenue Prior FY EPS Prior FY FY Outlook Outlook FY Outlook Outlook Total Americas 5.75% to 6.25% 5.5% to 6% 2019 Reported EPS $4.55 to $4.65 $4.50 to $4.65 Organic Americas 5.75% to 6.25% 5.5% to 6% Adjustments¹ $0.25 to $0.30 $0.25 to $0.30 Total EMEIA -3.5% to -2.5% -3% to
Slide 15: Summary
Summary ▪ Q3 revenue growth 5.2% versus prior year; Organic revenue growth 6.4% ▪ Q3 2019 adjusted operating margin +220 bps ▪ Adjusted Q3 EPS of $1.47 (+19.5%) ▪ Affirming full-year revenue outlook – total and organic growth of 4.5% to 5.5% ▪ Updating full-year EPS outlook ▪ Reported EPS $4.55 to $
Slide 16: ALLEGION
| i. ALLEGION
Slide 17: About Allegion
About Allegion Allegion 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, businesses, school