Allegion Plc · NYSE:ALLE
Allegion — Q2 2021 Earnings Presentation
14 slides from Allegion's earnings presentation, Jul 22, 2021
Slide 1: Second-Quarter 2021 Financial Results
Second-Quarter 2021 Financial Results July 22, 2021
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: Second-Quarter 2021 Update
Second-Quarter 2021 Update Market demand recovering faster and stronger than anticipated; End Markets returning to pre-pandemic levels Returned to growth in Q2; strong performance in Allegion Americas Electronics residential and non-residential retrofit, repair and small projects Inflation / Inflati
Slide 5: Second-Quarter 2021 Financial Summary
Second-Quarter 2021 Financial Summary Revenue1 Adjusted OI Adjusted YTD ACF1 $Millions Margin1 EPS1 $Millions +26.7% +70 bps +43.5% +140.9% $249.6 $746.9 $1.32 19.6% 18.9% $589.5 $0.92 $103.6 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 ▪ Organic revenue growth of 23.8% ▪ Margin expansion driven
Slide 6: Strategic Pillar in Focus: Be the Partner of Choice
Strategic Pillar in Focus: Be the Innovative Products & Integrations – Partner of Choice Recognized Experts – Open Standards To help deliver on our vision of seamless access and a safer world, we participate in recognized, secure, industry-leading platforms; develop collaborative strategic partnersh
Slide 7: Allegion EPS Performance
Second-Quarter 2021 Allegion EPS Performance $0.03 $0.01 $0.06 $1.32 $1.31 $0.36 $0.05 $0.01 $0.01 $0.12 $0.92 $0.80 Q2 20 Restructure Q2 20 Adjusted Operations Tax Rate Share Divestitures Investments Interest / Q2 21 Adjusted Restructure / Q2 21Reported Reported EPS EPS Count Other, Net / EPS M&A E
Slide 8: Revenue Results
Second-Quarter 2021 Revenue Results $800.0 30.0% 23.8% 25.0% $750.0 20.0% $700.0 Q2'21 Q2'21 15.0% Reported Organic1 10.0% $650.0 Growth Growth 5.0% 0.5% $600.0 -0.6% 0.0% -3.4% Allegion Americas 23.7% 22.9% $550.0 -5.0% Allegion International 36.0% 26.6% -10.0% $500.0 -18.5% -15.0% $450.0 Total 26.
Slide 9: Allegion Americas Results
Second-Quarter 2021 Allegion Americas Results Revenue1 Adjusted Operating Income1 $Millions $Millions +23.7% +21.3% $549.4 $444.3 $150.5 $124.1 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Adj OP Margin 27.9% 27.4% Q2 Revenue Performance Adj EBITDA % 29.9% 29.0% ▪ Organic revenue growth of 22.9%; reflects im
Slide 10: Allegion International Results
Second-Quarter 2021 Allegion International Results Revenue1 Adjusted Operating Income1 $Millions $Millions +36.0% $197.5 $145.2 $18.5 $0.3 Q2 20 Q2 21 Q21 20 Q2221 Adj OP Margin 0.2% 9.4% Q2 Revenue Performance Adj EBITDA % 6.6% 14.2% ▪ Organic revenue growth of 26.6% Q2 Adjusted Operating Margin +9
Slide 11: Year-to-Date 2021 Allegion ACF
Year-to-Date 2021 Allegion ACF Strong cash generation Available Cash Flow1 Working Capital2 & Cash Conversion Cycle (CCC)3 $Millions $249.6 $Millions Working Capital % of Revenue Cash Conversion Cycle 64.1 $103.6 6.8% 58.3 5.1% Q2 YTD Q2 YTD 2020 2021 ▪ Increase in ACF driven by higher 2020 2021 202
Slide 12: Full-Year 2021 Outlook
Full-Year 2021 Outlook Revenue FY Outlook Prior FY Outlook EPS FY Outlook Prior FY Outlook Total Americas +4.5 to +5% Flat to +1% 2021 Reported EPS $5.15 to $5.30 $4.85 to $5.05 Organic Americas +4 to +4.5% Flat to +1% Adjustments¹ ~$0.10 $0.10 to $0.15 Total International +13.5% to +14.5% +12% to +
Slide 13: Second-Quarter 2021 Summary
Second-Quarter 2021 Summary ▪ Q2 revenue growth of 26.7%; Organic revenue¹ growth of 23.8% ▪ Q2 adjusted operating margin¹ of 19.6%; Up 70 bps vs prior year ▪ Adjusted Q2 EPS¹ of $1.32 or +43.5% growth vs prior year ▪ Raising full-year revenue outlook ▪ Total revenue growth of 7% to 7.5% ▪ Organic r
Slide 14: 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, busi