Allegion Plc · NYSE:ALLE

Allegion — 2015 Vertical Research Partners Industrial Conference

18 slides from Allegion's conference presentation, Sep 9, 2015

  1. Slide 1: Allegion Overview

    2015 Vertical Research Partners Industrial Conference Allegion Overview Pioneering Safety Around the World David D. Petratis, President, Chairman & CEO September 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: 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

  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 Products Systems1 Secure the Door Control the Door Protect the Door Project Management  Exit devices  Door closers  Kick plates  Mechanical locks  Automatic  Door pulls Installation  Key systems operators  Edge guards System Design  Electronic locks  Coordinators  Access cont

  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: Key Strategies

    Key Strategies Expand in Innovation in Existing & Opportunistic Core Markets New Product Categories Acquisitions Enterprise Growth in Excellence Emerging Markets 8

  9. Slide 9: 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 2014; lowers cost of capital, continues to  End 2014: 2.9x of gross Debt/Adj. EBITDA provide liquidity and flexibility to grow business Organic Growth Sha

  10. Slide 10: 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 P

  11. Slide 11: 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 Expand Product  Retur

  12. Slide 12: 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

  13. Slide 13: 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

  14. Slide 14: Summary

    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 improvement 

  15. Slide 15: Appendix

    Allegion Investor Day Appendix

  16. Slide 16: 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

  17. Slide 17: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 17 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

  18. Slide 18: 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

Allegion — 2015 Vertical Research Partners Industrial Conference on 6ix