Allegion Plc · NYSE:ALLE
Allegion — Q4 2019 Earnings Presentation
21 slides from Allegion's earnings presentation, Feb 18, 2020
Slide 1: Allegion Fourth-Quarter 2019 Results
Allegion Fourth-Quarter 2019 Results February 18, 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 Company
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: 2019 Fourth-Quarter / Full-Year Update
2019 Fourth-Quarter / Full-Year Update Revenue growth of 2.4% and organic growth of 3.5% in the fourth quarter – Revenue driven by the Americas region (6.8% both reported and organic); Growth¹ Full-year revenue growth of 4.5% (4.6% organic) Electronics Americas electronics growth exceeded 12% in the
Slide 5: Fourth-Quarter Financial Summary
Fourth-Quarter Financial Summary 1 1 1 1 Revenue Adjusted OI Margin Adjusted EPS YTD ACF $Millions $Millions +2.4% +30 bps +4.9% +3.4% $719.5 $1.28 $422.6 21.0% $408.7 $702.4 20.7% $1.22 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Q4 YTD Q4 YTD 2018 2019 ▪ Organic growth of 3.5% ▪ Price and productivity ▪ A
Slide 6: Our Legacy of Innovation Continues
Our Legacy of Innovation Continues Schlage’s best smart lock honors SCHLAGE is a trademark of Allegion plc. All other marks are the property of their respective owners. 6 | Fourth-Quarter 2019 Results
Slide 7: Vision Strategy
Vision Seamless access and a safer world Allegion creates value by securing people and assets with Strategy seamless access wherever they reside, work and thrive Deliver Expand New in Core Value in Markets Access Be the Capital Partner of Allocation Choice Enterprise Excellence 7 | Fourth-Quarter 20
Slide 8: 2019 Fourth-Quarter / Full-Year Allegion Revenue Results
2019 Fourth-Quarter / Full-Year Allegion Revenue Results Q4'19 Q4'19 FY'19 FY'19 Q4-19 Reported Organic1 Reported Organic1 Growth Growth Growth Growth Price 1.7% Americas 6.8% 6.8% 6.3% 6.2% Volume 1.8% EMEIA -5.0% -1.5% -2.9% 2.0% Organic 3.5% Asia Pacific -16.6% -13.4% 9.0% -5.5% Divestiture -0.3%
Slide 9: Fourth-Quarter 2019 Allegion Results
Fourth-Quarter 2019 Allegion Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) +2.4% +4.0% $702.4 $719.5 $145.2 $151.0 Q4 18 Q4 19 Q4 18 Q4 19 Adj Op Margin 20.7% 21.0% Adj EBITDA % 23.4% 23.7% Q4 Revenue Performance Q4 Adjusted Operating Margin +30 bps ▪ Organic revenue growth o
Slide 10: Fourth-Quarter 2019 Allegion EPS Performance
Fourth-Quarter 2019 Allegion EPS Performance Q4 $1.39 $0.08 $0.03 $1.28 $1.22 $0.02 $0.03 $0.17 $0.86 $0.42 Q4 18 Reported Restructure / Q4 18 Adjusted Operations Share Count Investments Tax Rate Q4 19 Adjusted Restructure / Q4 19 Reported EPS M&A Costs / Tax EPS EPS Impairments / EPS Reform Loss on
Slide 11: Fourth-Quarter 2019 Americas Results
Fourth-Quarter 2019 Americas Results 1 Revenue 1 Adjusted Operating Income ($millions) ($millions) +6.8% +16.8% $492.7 $526.3 $153.9 $131.8 Q4 18 Q4 19 Q4 18 Q4 19 Adj Op Margin 26.8% 29.2% Adj EBITDA % 28.6% 30.9% Q4 Revenue Performance Q4 Adjusted Operating Margin +240 bps ▪ Organic revenue growth
Slide 12: Fourth-Quarter 2019 EMEIA Results
Fourth-Quarter 2019 EMEIA Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) -5.0% $157.4 $149.6 Q4 18 Q4 19 Q4 Revenue Performance Q4 Adjusted Operating Margin -310 bps ▪ Organic revenue decline of 1.5% ▪ Inflation exceeded price plus productivity ▪ Lower volume driven by softeni
Slide 13: Fourth-Quarter 2019 Asia-Pacific Results
Fourth-Quarter 2019 Asia-Pacific Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) -16.6% $52.3 $43.6 Q4 18 Q4 19 Q4 Revenue Performance Q4 Adjusted Operating Margin -800 bps ▪ Organic revenue decline of 13.4% ▪ Inflation exceeded price plus productivity by approximately $1 milli
Slide 14: Fourth-Quarter 2019 Allegion ACF
Fourth-Quarter 2019 Allegion ACF Available Cash Flow1 $440.0 ($millions) $422.6 $420.0 $408.7 ▪ Increase in ACF driven by incremental $400.0 adjusted net earnings and improvements in $380.0 $360.0 net working capital; partially offset by $340.0 increased restructuring payments and higher $320.0 capi
Slide 15: Full-Year 2020 Allegion Revenue Outlook
Full-Year 2020 Allegion Revenue Outlook Region Revenue Projection1 Markets ▪ Continued strength in Non-residential verticals, led by Americas institutional Total: 4% to 5% ▪ Residential new construction improving Organic: 4.5% to 5.5% ▪ Electronics projected to continue to outpace mechanical ▪ Total
Slide 16: Full-Year 2020 Allegion EPS Outlook
Full-Year 2020 Allegion EPS Outlook 2019 Reported EPS $4.26 Adjustments¹ $0.63 2019 Adjusted EPS $4.89 Operational Improvements (Growth / OPEX / FX / Divest) ~$0.43 to $0.53 Adj. Op. Income EPS impact +$0.28 to $0.38 or Investments ~($0.15) ~6% to 8% Interest / Other ~$0.01 Tax Rate ~($0.15) Share C
Slide 17: Summary
Summary ▪ Delivered solid full-year organic revenue growth of 4.6% ▪ 2019 full-year adjusted operating margins up 70 bps versus 2018 ▪ Full-year adjusted EPS of $4.89, up nearly 9% compared to prior year ▪ Strong available cash flow of $422.6 million, up $13.9 million versus prior year ▪ For 2020, p
Slide 18: Appendix
ALLEGION’
Slide 19: Full-Year 2019 Allegion EPS Performance
Full-Year 2019 Allegion EPS Performance FY $0.51 $0.07 $4.89 $4.54 $4.50 $0.04 $0.05 $0.10 $4.26 $0.04 $0.63 Dec YTD 18 Restructure / Dec YTD 18 Operations Share Count Interest / Tax Rate Investments Dec YTD 19 Restructure / Dec YTD 19 Reported EPS M&A Costs / Adjusted EPS Other, Net / Adjusted EPS
Slide 20: ALLEGION
| i. ALLEGION
Slide 21: About Allegion
About Allegion Allegion 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, businesses, school