Slide 1: Second-Quarter 2020 Financial Results
Second-Quarter 2020 Financial Results July 23, 2020
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: Allegion Values
Allegion Values Serve others, not yourself Be curious beyond the obvious Enjoy what you do and Be empowered and accountable celebrate who we are Do the right thing This is your business, run with it Be safe, be healthy Have a passion for excellence 4 Second-Quarter 2020 Results
Slide 5: COVID-19 Update
COVID-19 Update Helping keep our employees and communities safe Thousands 6-ft 400 45,000 1,000,000 Of safety changes Social distancing Bike lights and locks Face masks donated Masks provided for implemented globally measures at sites donated to healthcare Allegion employees 5 Second-Quarter 2020 Re
Slide 6: Seamless Access for Healthy Environments
Seamless Access for Healthy Environments Leveraging our core to anticipate and respond to customer needs Door Hardware Cleaning Touchless Automated Surface Technology Mobile & Remote Access, Seamless Access & & Disinfecting & Mechanical Solutions Workforce Management a Safer World Best Practices Acc
Slide 7: Second-Quarter 2020 Financial Summary
Second-Quarter 2020 Financial Summary Revenue1 Adjusted OI Adjusted YTD ACF1 $Millions Margin1 EPS1 $Millions -19.4% -260 bps -27.0% +33.3% $731.2 21.5% $1.26 $103.6 18.9% $589.5 $0.92 $77.7 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q1 20 Q2 19 Q2 20 ▪ Organic revenue decline of 18.5% ▪ Margin decline driven by
Slide 8: Allegion EPS Performance
Second-Quarter 2020 Allegion EPS Performance $0.10 $1.26 $1.16 $0.02 $0.92 $0.05 $0.01 $0.80 $0.42 $0.12 Q2 19 Reported Restructure / Q2 19 Adjusted Operations Investments Interest / Other, Share Count Q2 20 Adjusted Restructure Q2 20 Reported EPS M&A Costs EPS Net / NCI EPS Costs EPS 8 Second-Quart
Slide 9: Revenue Results
Second-Quarter 2020 Revenue Results Lower volume due to COVID-19 pandemic Q2'20 Q2'20 Q2 Reported Organic1 2020 Growth Growth Price 0.6% Americas -18.5% -18.1% Volume -19.1% EMEA -21.9% -20.4% Organic -18.5% Asia Pacific -22.1% -18.0% Divestitures -0.3% Currency -0.6% Total -19.4% Total Allegion -19
Slide 10: Americas Results
Second-Quarter 2020 Americas Results Revenue1 Adjusted Operating Income1 $Millions $Millions -18.5% -23.6% $545.1 $162.4 $444.3 $124.1 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Adj OP Margin 29.8% 27.9% Q2 Revenue Performance Adj EBITDA % 31.5% 29.9% ▪ Organic revenue decline of 18.1% ▪ Lower volume due t
Slide 11: EMEA Results
Second-Quarter 2020 EMEA Results Revenue1 Adjusted Operating Income1 $Millions $Millions -21.9% -86.8% $142.2 $11.4 $111.0 $1.5 Q2 19 Q2 20 Q2 19 Q2 20 Q2 19 Q2 20 Adj OP Margin 8.0% 1.4% Q2 Revenue Performance Adj EBITDA % 13.7% 8.7% ▪ Organic revenue decline of 20.4% ▪ Lower volume driven by COVID
Slide 12: Asia-Pacific Results
Second-Quarter 2020 Asia-Pacific Results Revenue1 Adjusted Operating Income1 $Millions $Millions -22.1% -166.7% $1.8 $43.9 $34.2 -$1.2 Q2 19 Q2 20 Q2 19 Q2 19 Q2 20 Q2 20 Adj OP Margin 4.1% -3.5% Q2 Revenue Performance Adj EBITDA % 7.1% -0.3% ▪ Organic revenue decline of 18.0% ▪ Lower volume driven
Slide 13: Year-to-Date 2020 Allegion ACF
Year-to-Date 2020 Allegion ACF Solid year-to-date cash flow; liquidity stable Available Cash Flow1 Working Capital2 & Cash Conversion Cycle (CCC)3 $Millions $Millions $103.6 $77.7 Working Capital % of Revenue Cash Conversion Cycle 7.6% 64.4 64.1 6.8% Q2 YTD Q2 YTD 2019 2020 ▪ Increase in ACF driven
Slide 14: Full-Year 2020 Revenue Outlook
Full-Year 2020 Revenue Outlook COVID-19 impacts driving revenue declines for the year Americas EMEA Asia Pacific Total Allegion Revenue Projection1 Revenue Projection1 Revenue Projection1 Revenue Projection1 Total Organic Total Organic Total Organic Total Organic -9% to -8% -8.5% to -7.5% -11% to -1
Slide 15: Full-Year 2020 EPS Outlook
Full-Year 2020 EPS Outlook 2019 Reported EPS $4.26 Assumptions and Notes: Adjustments¹ $0.63 ▪ Full-year adjusted effective tax rate assumption of approximately 13.5% to 14.5% 2019 Adjusted EPS $4.89 ▪ Average diluted share count for the full year of Operational Performance (Volume / OPEX / FX / Div
Slide 16: Summary
Second-Quarter 2020 Summary ▪ Q2 revenue decline of 19.4%; organic revenue¹ decline of 18.5% ▪ Q2 adjusted operating margin¹ of 18.9% ▪ Adjusted Q2 EPS¹ of $0.92 ▪ Re-issuing full-year revenue outlook ▪ Total revenue decline of 9% to 10% ▪ Organic revenue¹ decline of 8% to 9% ▪ Re-issuing full-year
Slide 17: 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, bus