Allegion Plc · NYSE:ALLE
Allegion — Q3 2021 Earnings Presentation
14 slides from Allegion's earnings presentation, Oct 21, 2021
Slide 1: Third-Quarter 2021 Financial Results
Third-Quarter 2021 Financial Results October 21, 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 continu
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 Recognized for ESG Leadership
Allegion Recognized for ESG Leadership U.S. National Safety Council honors Allegion with prestigious 2021 Robert W. Campbell Award for EHS excellence; Indiana Chamber names Allegion as inaugural Jackson Lewis Diversity, Equity & Inclusion Champion 2021 Indiana Chamber 2021 National Safety Council Ja
Slide 5: Business Update
Business Update Continued strength in market demand; leading indicators remain End Markets positive Q3 impacted by availability of electronic components; global issue Electronics across multiple industries; redesigning products and developing alternate sources of supply to help mitigate Higher mater
Slide 6: Third-Quarter 2021 Financial Summary
Third-Quarter 2021 Financial Summary Revenue1 Adjusted OI Adjusted YTD ACF1 $Millions Margin1 EPS1 $Millions -1.6% -330 bps -6.6% +28% 23.3% $327.7 $728.4 $717.0 $1.67 20.0% $1.56 $256.1 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 ▪ Organic revenue decline of 1.6% ▪ Margin decline driven by high
Slide 7: Third-Quarter 2021 Allegion EPS Performance
Third-Quarter 2021 Allegion EPS Performance *Gain on the sale of an equity method investment 7 Third-Quarter 2021 Results See press release for non-GAAP reconciliations
Slide 8: Third-Quarter 2021 Revenue Results
Third-Quarter 2021 Revenue Results $800.0 $750.0 23.8% $700.0 Q3'21 Q3'21 Reported Organic1 $650.0 Growth Growth $600.0 $550.0 Allegion Americas -2.7% -3.0% 0.5% Allegion International 1.7% 2.5% $500.0 -0.6% -1.6% -3.4% $450.0 Total -1.6% -1.6% $728.4 $727.3 $694.3 $746.9 $717.0 $400.0 Q3 2020 Q4 20
Slide 9: Allegion Americas Results
Third-Quarter 2021 Allegion Americas Results Revenue1 Adjusted Operating Income1 $Millions $Millions -2.7% -19.7% $539.1 $524.4 $166.6 $133.7 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Adj OP Margin 30.9% 25.5% Q3 Revenue Performance Adj EBITDA % 32.5% 27.1% ▪ Organic revenue decline of 3.0% ▪ Good price r
Slide 10: Allegion International Results
Third-Quarter 2021 Allegion International Results Revenue1 Adjusted Operating Income1 $Millions $Millions +1.7% +4.9% $189.3 $192.6 $20.3 $21.3 Q3 20 Q3 21 Q31 20 Q3221 Adj OP Margin 10.7% 11.1% Q3 Revenue Performance Adj EBITDA % 16.0% 16.1% ▪ Organic revenue growth of 2.5% Q3 Adjusted Operating Ma
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 $Millions $327.7 $256.1 Working Capital % of Revenue Cash Conversion Cycle 64.7 6.7% 58.9 4.7% Q3 YTD Q3 YTD 2020 2021 ▪ Increase in ACF driven by higher year- 2020 20
Slide 12: Full-Year 2021 Outlook
Full-Year 2021 Outlook Revenue FY Outlook EPS FY Outlook Total Americas +1% to +1.5% 2021 Reported EPS $4.95 to $5.05 Organic Americas +0.5% to +1% Adjustments¹ ~$0.05 Total International +12% to +13% Organic International +9% to +10% 2021 Adjusted EPS $5.00 to $5.10 Total Allegion +4% to +4.5% Orga
Slide 13: Strong Long-Term Fundamentals
Strong Long-Term Fundamentals ▪ Seamless access and electronics transformation strategies remain sound ▪ ESG programs recognized and progressing ▪ End markets remain strong – anticipate this will continue ▪ Positive macroeconomic indicators (ABI, Dodge, etc.) ▪ Continued strength in SimonsVoss, Inte
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