Allegion Plc · NYSE:ALLE

Allegion — 2015 Imperial Capital Security Investor Conference

19 slides from Allegion's conference presentation, Dec 10, 2015

1. Slide 1: 2015 Allegion Overview

   2015 Imperial Capital Security Investor Conference 2015 Allegion Overview Pioneering Security Around the World Tim Eckersley, Senior Vice President & President of the Americas Patrick Shannon, Senior Vice President & CFO December 10, 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: 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 organic growth and EBITDA margins  High level of cash conversion performance  Broad distribution n

4. Slide 4: Global Reach

   Global Reach $2,118 Million in 2014 Revenue 7,000+ Channel Partners 4

5. Slide 5: Our Brands

   Our Brands Enterprise Brand Strategic Brands A Long Legacy of Excellence 5

6. Slide 6: What We Sell

   What We Sell Secure the Door Control the Door Protect the Door Portable Security  Exit devices  Door closers  Kick plates  Padlocks  Mechanical locks  Automatic  Door pulls  Cable locks  Key systems operators  Edge guards  Bike locks  Electronic locks  Coordinators  Readers  Credentia

7. Slide 7: Allegion Leadership in the IoT

   Allegion Leadership in the IoT Highlights  Unique in the IoT: leadership across residential, multi-family and commercial  Schlage locks are a prevalent entry point for home automation  Consumer applications migrate into commercial  Collaboration with key MULTI-FAMILY & RECOGNIZED RESIDENTIAL COM

8. Slide 8: Schlage Sense pre-orders started Sept. 1

    Schlage Sense pre-orders started Sept. 1  Key-free convenience  Grade 1 security  Built-in alarm technology  End-to-end encryption and authentication  Hardware and Building Supply Dealer: “…one of the strongest, most intelligent Bluetooth-enabled locks on the market.”  Mashable: “ ‘Siri, it'

9. Slide 9: Key Strategies

   Key Strategies Innovation in Opportunistic Expand in Existing & New Core Markets Acquisitions Product Categories  Channel management  Accelerate new product  Emerging markets and demand creation development / vitality  Emerging technology  Commercial retrofit and index  Expand product portfoli

10. Slide 10: Capital Allocation Strategy

    Capital Allocation Strategy Leverage Management  Target 2.75-3.25x of gross Debt/Adj. EBITDA  Utilize cash flow and EBITDA contribution from acquisitions to quickly de-lever back  LTM Sep. 2015: 3.7x of gross Debt/Adj. EBITDA to target range Organic Growth Shareholder M&A Investment Distribution

11. Slide 11: Organic Investments

    Organic Investments New Product Channel Infrastructure Development Management  Engineering / R&D  Feet on the Street  IT Systems  Product Launches  Demand Creation  Tax  Enterprise Excellence Accelerate revenue Reduce cost structure Investment return / realization in 1-3 years Standardized Pr

12. Slide 12: M&A Platforms / Thresholds

    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  Return on Invested C

13. Slide 13: Recent Acquisitions

    Recent Acquisitions  Leading European electronic  Innovative residential and  South Korea digital door locks manufacturer based in portable security product lock manufacturer Germany provider headquartered in the Netherlands  Complementary product  Strong legacy of innovation portfolio with mor

14. Slide 14: Historical Adjusted EBITDA Margins

    Historical Adjusted EBITDA Margins ¹ Adjusted EBITDA defined as operating income plus depreciation and amortization, excluding discontinued operations, net of tax, other expense, net, goodwill impairment charges, gains on the sale of property, charges related to the devaluation of the Venezuelan bol

15. Slide 15: Strong Cash Flow Generation

    Strong Cash Flow Generation ($ millions) 2015 Target ~$200 million 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 i

16. Slide 16: Summary

    Summary  Executing strategy, delivering on commitments  Performing at a high level in recovering markets  Implementing successful M&A integrations  Delivering solid organic revenue growth  Increasing operating margins net of incremental investments  Continuing to invest in new products and cha

17. Slide 17: Appendix

    ALLEGION’ PIONEERING SAFETY™

18. Slide 18: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation LTM 2008 2009 2010 2011 2012 2013 2014 ( in USD Millions) 9/30/15 Revenue $2,413.9 $2,006.7 $1,942.4 $1,998.3 $2,023.3 $2,069.6 $2,118.3 $2,096.1 Asia Joint Venture Revenue (65.3) (64.5) (68.9) (58.6) (78.0) (52.0) 0.0 0.0 Adjusted Revenue 2,348.6 1,942.2 1,873.5 1,939

19. Slide 19: 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 insti

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