Allegion Plc · NYSE:ALLE
Allegion — Q4 2015 Earnings Presentation
20 slides from Allegion's earnings presentation, Feb 11, 2016
Slide 1: Allegion Fourth-Quarter 2015 Results
Allegion Fourth-Quarter 2015 Results February 11, 2016
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 2016 financial performance, the Company’s growth strategy, the Company’s capital allocation strategy, the Compa
Slide 3: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Revenue of $545.4 million decreased -4.9%, +4.8% on an organic basis1 Americas organic revenue growth +6.6% EMEIA organic revenue growth +3.1% Asia Pacific organic revenue declined -1.6%2 Adjusted3 operating income of $103.5 million decreased -2.9%; adju
Slide 4: Allegion – 2015 Financial Scorecard
Allegion – 2015 Financial Scorecard 2015 Guidance (2/18/15) 2015 Actual Total revenue: Down 3% to 4% Total Revenue: Down 2.4 % Revenue Organic revenue: Up 3% to 4% Organic Revenue: Up 5.4% Adjusted Effective 22% 16.2% Tax Rate1 Adjusted $3.03 $2.65 to $2.75 EPS1 $2.82 at 22% effect
Slide 5: Allegion – 2015 Accomplishments
Allegion – 2015 Accomplishments Exceptional Safety Record: TRIR1 of 0.59 down 17% VPY; LTIR2 of 0.11 down 21% VPY EMEIA Transformation – Region delivered most profitable year since 2008 Implementation and growth of channel led business strategy Strong growth from new products increasing vita
Slide 6: Leading Electro-Mechanical Convergence
Leading Electro-Mechanical Convergence Residential Commercial 4 7. aptiQ Mobile 1. AXA Remote 3 5 2.0 Window Opener 8. CISA eSIGNO 2 6 2. Milre Rim Lock 9. Interflex eVAYO 430 SD WLAN Reader 3. Schlage 1 7 10. Schlage AD-400 (China) SEL 420 Electronic Residential 11. Schlage L909x Anti-burglary Lock
Slide 7: 2015 Allegion Adjusted Revenue Results
2015 Allegion Adjusted Revenue Results Solid organic growth; Headwinds from currency and divestitures 1Organic excludes acquisitions/divestments and currency impacts 2Asia Pacific excluding system integration business Q4 reported growth 42.7%, organic growth 12.2%; FY reported growth 25.7%, organic
Slide 8: Fourth-Quarter 2015 Allegion Results
Fourth-Quarter 2015 Allegion Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q4 Revenue Performance Q4 Adjusted Operating Margin +40bps Total growth -4.9%; organic growth +4.8% Favorable margin improvement in Solid organic growth in Americas more than Americas and EMEIA re
Slide 9: Fourth-Quarter 2015 Allegion EPS Performance
Fourth-Quarter 2015 Allegion EPS Performance Q4 Bocom $(0.08) Venezuela $(0.01) FX $(0.02) Interest $(0.04) Volume/Mix $0.10 Other $0.04 Productivity/Inflation $0.02 (1) (2) (1) Other includes VZ devaluation and inventory impairment and extinguishment of capitalized debt costs (2) Includes favorable
Slide 10: Fourth-Quarter 2015 Americas Results
Fourth-Quarter 2015 Americas Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q4 Revenue Performance Q4 Adjusted Operating Margin +60bps Total growth -2.0%; organic growth +6.6% Favorable margin improvement while absorbing currency headwind and divestiture Double digit grow
Slide 11: Fourth-Quarter 2015 EMEIA Results
Fourth-Quarter 2015 EMEIA Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q4 Revenue Performance Q4 Adjusted Operating Margin +240bps Total growth +24.8%; organic growth +3.1% Achieved margin improvement in every Strong revenue performance in Interflex and quarter of 2015
Slide 12: Fourth-Quarter 2015 Asia Pacific Results
Fourth-Quarter 2015 Asia Pacific Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q4 14 Q4 15 Syst Integration 8.5 (0.7) Mech/Elec Hdw 1.2 2.9 Total 9.7 2.2 Q4 Revenue Performance Q4 Adjusted Operating Margin -560bps Total growth -58.2%; organic growth -1.6% Operating margin
Slide 13: Full-Year 2015 Allegion ACF
Full-Year 2015 Allegion ACF Available Cash Flow 1 ($millions) 2015 FY ACF of $222.2 million is $14.7 million, or 7.1 percent, higher than prior year Increase in ACF primarily due to lower capital expenditures Working Capital 2 and Cash Conversion Cycle(CCC)3 Continuing to deliver consistent cash
Slide 14: Capital Allocation Strategy
Capital Allocation Strategy Leverage Management Target 2.75-3.25x of gross Debt/Adj. EBITDA Continued EBITDA growth and debt amortization will reduce leverage to target End 2015: 3.5x of gross Debt/Adj. EBITDA range in 2016 Organic Growth Shareholder M&A Investment Distribution Expand core p
Slide 15: Full-Year 2016 Revenue Guidance
Full-Year 2016 Revenue Guidance Region Revenue Change1 Markets Americas • U.S. non-residential growing low to mid-single digit • Institutional slowly improving; Total: 4% to 5% Commercial/Industrial cautious growth Organic: 5% to 6% • U.S. residential up mid-single digit driven by both builder and b
Slide 16: Full-Year 2016 EPS Guidance
Full-Year 2016 EPS Guidance 2015 Reported EPS from Continuing Operations $1.59 Adjustments (see press release for non-GAAP reconciliations) $1.44 2015 Adjusted EPS from Continuing Operations $3.03 Operational Improvements $0.55 to $0.60 Investment Focus Acquisitions/Divestitures $0.10 to $0.15 New P
Slide 17: Summary
Summary Delivered strong 2015 FY organic revenue growth of +5.4% Increased 2015 FY operating margins +50 bps Significant progress on EMEIA profitability transformation resulting in FY adjusted operating margin of approximately 8 percent Strong cash generation Reduced full year adjusted eff
Slide 18: Appendix
ALLEGION’
Slide 19: Full Year 2015 Allegion EPS Performance
Full Year 2015 Allegion EPS Performance Full Year Other $0.05 NCI $0.01 Interest $(0.03) Bocom $(0.07) Price $0.04 Venezuela $(0.10) Volume/Mix $0.30 Productivity/Inflation $0.09 (1) (2) (1) Other includes VZ inventory impairment, VZ devaluation and extinguishment of capitalized debt costs (2) Other
Slide 20: Allegion
| i. ALLEGION