Allegion Plc · NYSE:ALLE
Allegion — Q3 2018 Earnings Presentation
16 slides from Allegion's earnings presentation, Oct 25, 2018
Slide 1: Third-Quarter 2018 Results
Allegion Third-Quarter 2018 Results October 25, 2018
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, 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 (non-GAAP), and also presents adj
Slide 4: 2018 Third-Quarter Update
2018 Third-Quarter Update Strong Revenue Strong organic growth and double-digit total top-line growth – with strength across Growth all regions Excellent growth in electronic products globally; Americas electronics growth at Electronics nearly 30% Healthy End U.S. End markets remain healthy – contin
Slide 5: Third-Quarter Financial Summary
Third-Quarter Financial Summary Revenue Adjusted OI Margin Adjusted EPS YTD ACF $Millions $Millions Up Down Up Up 16.8% 140 bps 20.6% 67.7% • Organic growth up 8.5% • Adjusted OI margins flat • Adjusted operating • Increased earnings excl. 2018 acquisitions income up ~10% • Solid organic growth in a
Slide 6: SimonsVoss SmartHandle AX
SimonsVoss SmartHandle AX ▪ Flexible design with ability to be leveraged globally ▪ Easy installation ▪ Up to 10 years of battery life ▪ Enhanced security architecture with built in Smart features ▪ Launched during Q3 Design, Security & Compatibility 6 | Third-Quarter 2018 Results
Slide 7: Allegion Revenue Results
Third-Quarter 2018 Allegion Revenue Results Q3 Q3 Q3-18 Reported Organic 1 Growth Growth Price 2.2% Americas 16.5% 10.1% Volume 6.3% EMEIA 7.4% 3.4% Organic 8.5% Asia Pacific 61.5% 5.9% Acquisitions 9.0% Currency -0.7% Total 16.8% Total Allegion 16.8% 8.5% Double-Digit Top-line Growth with Strong Vo
Slide 8: Allegion Results
Third-Quarter 2018 Allegion Results Revenue Adjusted Operating Income ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin -140bps ▪ Total revenue growth +16.8%; Organic growth ▪ Inflation slightly exceeded price and +8.5% productivity ▪ Double digit organic growth in Americas
Slide 9: Allegion EPS Performance
Third-Quarter 2018 Allegion EPS Performance Q3 9 | Third-Quarter 2018 Results
Slide 10: Americas Results
Third-Quarter 2018 Americas Results Revenue Adjusted Operating Income ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin -130bps ▪ Total revenue growth +16.5%; Organic growth +10.1% ▪ Price plus productivity slightly exceeded inflation ▪ Strong year-over-year growth in elect
Slide 11: EMEIA Results
Third-Quarter 2018 EMEIA Results Revenue Adjusted Operating Income ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin -50bps ▪ Total revenue growth +7.4%; Organic growth ▪ Price plus productivity slightly exceeded inflation +3.4% ▪ Incremental investments an 80 bps headwind
Slide 12: Asia-Pacific Results
Third-Quarter 2018 Asia-Pacific Results Revenue Adjusted Operating Income ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin -80bps ▪ Total revenue growth +61.5%; Organic growth +5.9% ▪ Price plus productivity slightly exceeded inflation ▪ Total growth driven by acquisitions
Slide 13: Allegion ACF
Third-Quarter 2018 Allegion ACF Available Cash Flow1 ($millions) ▪ Improvement in ACF is due to Q1 2017 $50 million discretionary pension funding, higher net income, and favorable working capital changes Working Capital2 & Cash Conversion Cycle (CCC)3 Affirming Full-Year ACF Outlook Range of $380 to
Slide 14: Full-Year 2018 Outlook
Full-Year 2018 Outlook Revenue EPS FY Outlook Prior FY Outlook FY Outlook Prior FY Outlook Total Americas 12% to 12.5% 10.5% to 11.5% 2018 Reported EPS $4.23 to $4.35 $4.15 to $4.35 Organic Americas 6% to 6.5% 4.5% to 5.5% Adjustments¹ ~$0.15 to $0.20 ~$0.15 to $0.20 Total EMEIA 12% to 13% 14% to 15
Slide 15: Summary
Summary ▪ Q3 revenue increased $102.1 million, +16.8% versus prior year ▪ Organic revenue growth +8.5% ▪ Acquisitions contributing +9% to total revenue growth ▪ Q3 2018 adjusted operating margins decreased -140 bps; flat excluding 2018 acquisitions ▪ Adjusted EPS of $1.23 increased +20.6% ▪ Consolid
Slide 16: ALLEGION
| i. ALLEGION