Allegion Plc · NYSE:ALLE

Allegion — Q2 2015 Earnings Presentation

15 slides from Allegion's earnings presentation, Jul 30, 2015

  1. Slide 1: Second-Quarter 2015 Results

    Allegion Second-Quarter 2015 Results July 30, 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: Second-Quarter 2015 Financial Highlights

    Second-Quarter 2015 Financial Highlights  Revenue of $519.5 million decreased 2.3%, +5.8% on an organic basis(1) ‒ Americas organic revenue growth +7.2% ‒ EMEIA organic revenue growth -0.3% ‒ Asia Pacific organic revenue growth +7.7% ‒ Allegion electronics revenue growth +20%  Adjusted(2) operatin

  4. Slide 4: Opportunistic Acquisitions

    Opportunistic Acquisitions  Leading European  Innovative residential and  South Korea digital door electronic locks portable security product lock manufacturer manufacturer based in provider headquartered in Germany the Netherlands  Complementary product portfolio with mortise,  Strong legacy o

  5. Slide 5: Allegion Leadership in the IoT

    Allegion Leadership in the IoT Highlights  Unique in the IoT: leadership across residential, multi-family & commercial  Schlage locks are a prevalent entry point for home automation  Consumer applications migrate into commercial  Collaboration with key MULTI-FAMILY & RECOGNIZED RESIDENTIAL COMME

  6. Slide 6: Allegion Revenue Results

    Second-Quarter 2015 Allegion Revenue Results Q2 Reported Q2 Organic (1) 2Q15 Growth Growth Price 0.7% Americas 0.3% 7.2% Volume 5.1% EMEIA -17.1% -0.3% Organic 5.8% Asia Pacific 13.2% 7.7% Acq./Div. 1.2% Currency -9.3% Total -2.3% Total Allegion -2.3% 5.8% Strong organic growth in quarter; Currency

  7. Slide 7: Allegion Results

    Second-Quarter 2015 Allegion Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +40bps  Total growth -2.3%; organic growth +5.8%  Margin improvement in all regions  Strong organic growth led by the Americas  Strong operating l

  8. Slide 8: Allegion EPS Performance

    Second-Quarter 2015 Allegion EPS Performance Q2 Volume/Mix $0.07 Price $0.02 Productivity/Inflation $0.01 Asia Bad Debt Adj $0.01 8 | Second-Quarter 2015 Results

  9. Slide 9: Americas Results

    Second-Quarter 2015 Americas Results Revenue Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Operating Margin +10bps  Total growth +0.3%; organic growth +7.2%  Price and productivity exceeded inflation  Mid-single-digit growth in non-residential and residential products  Conti

  10. Slide 10: EMEIA Results

    Second-Quarter 2015 EMEIA Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +300bps  Total growth -17.1%; organic growth -0.3%  Continued progress on EMEIA margin  Currency headwinds resulting from transformation strengthening

  11. Slide 11: Asia Pacific Results

    Second-Quarter 2015 Asia Pacific Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +690bps  Total growth +13.2%; organic growth +7.7%  Improved margins from leverage of acquisitions  Good contributions from the hardware busine

  12. Slide 12: Allegion ACF

    Second-Quarter 2015 Allegion ACF Available Cash Flow 1 ($millions)  Q2 YTD ACF is $24.6 million less than prior year, primarily due to increased operating cash requirements offset by increased earnings and reduced capital expenditures Working Capital 2 and Cash Conversion Cycle(CCC)3 Guiding full-y

  13. Slide 13: Full-Year 2015 Guidance

    Full-Year 2015 Guidance Total -1.5% to -0.5% Americas Organic 5.0% to 6.0% YOY Total Revenue Growth -3.5% to -2.5% Total -17% to -15% EMEIA Organic -2% to Flat YOY Organic(1) Revenue Growth 4.0% to 5.0% Total 8% to 10% Asia Pacific Organic 6% to 8% 2015 Reported EPS from Continuing Operations $2.51

  14. Slide 14: Summary

    Summary  Q2 adjusted organic revenue growth +5.8% ‒ All regions delivered operating margin expansion ‒ Balanced growth in U.S. non-residential and residential segments  U.S. markets continue to improve, European markets mixed, Asia Pacific continues to grow, but China slowing  EMEIA profitability

  15. Slide 15: Allegion

    | i. ALLEGION

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