Allegion Plc · NYSE:ALLE

Allegion — Q2 2016 Earnings Presentation

15 slides from Allegion's earnings presentation, Jul 28, 2016

  1. Slide 1: Allegion Second-Quarter 2016 Results

    Allegion Second-Quarter 2016 Results July 28, 2016

  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 2016 financial performance, the Company’s growth strategy, the Company’s capital allocation strategy, the Compa

  3. Slide 3: Second-Quarter Financial Highlights

    Second-Quarter Financial Highlights  Revenue of $584.9 million increased +12.6%, +8.9% on an organic basis1  Americas organic revenue growth +9.8%  EMEIA organic revenue growth +3.0%  Asia Pacific organic revenue growth +12.9%2  Adjusted operating income of $125.7 million increased +24.2%; adju

  4. Slide 4: Allegion has a relentless focus on safety, a key driver of enterprise excellence

    Allegion has a relentless focus on safety, a key driver of enterprise excellence Total Recordable Incident Rate Source: company reports and U.S. Bureau Labor Statistics for Manufacturers 2015 U.S. Bureau Labor Statistics for Manufacturers figures will not be published until Dec 2016 Safety ingrained

  5. Slide 5: 2016 Allegion Revenue Results

    2016 Allegion Revenue Results Q2 Q2 1 Q2-16 Reported Organic Growth Growth Price 0.4% Americas 8.6% 9.8% Volume 8.5% EMEIA 44.9% 3.0% Organic 8.9% Asia Pacific -20.0% 12.9% Acq./Div. 4.1% Currency -0.4% Total 12.6% Total Allegion 12.6% 8.9% Significant Organic Growth; Acquisitions Contributing 1Orga

  6. Slide 6: Second-Quarter 2016 Allegion Results

    Second-Quarter 2016 Allegion Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +200bps  Total growth +12.6%; organic growth +8.9%  Margin improvement in all regions  Strong organic growth across all regions;  Strong operating

  7. Slide 7: Second-Quarter 2016 Allegion EPS Performance

    Second-Quarter 2016 Allegion EPS Performance Q2 Other,Net/NCI $0.07 Interest Expense ($0.04) Volume/Mix $0.18 Price $0.02 Productivity/Inflation ($0.03) FX $0.01 7 | Second-Quarter 2016 Results

  8. Slide 8: Second-Quarter 2016 Americas Results

    Second-Quarter 2016 Americas Results Revenue Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +200bps  Total growth +8.6%; organic growth +9.8%  Favorable margin improvement driven by  Mid-teens electronics growth strong volume leverage  Doubl

  9. Slide 9: Second-Quarter 2016 EMEIA Results

    Second-Quarter 2016 EMEIA Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +250bps  Total growth +44.9%; organic growth +3.0%  Sixth consecutive quarter with year-over-  Strong price realization +1.5% year margin improvement

  10. Slide 10: Second-Quarter 2016 Asia Pacific Results

    Second-Quarter 2016 Asia Pacific Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q2 15 Q2 16 Syst Integration (1.4) - Mech/Elec Hdw (0.0) 2.3 Total (1.4) 2.3 Q2 Revenue Performance Q2 Adjusted Operating Margin +1280bps  Total growth -20.0%; organic growth +12.9%  Operating mar

  11. Slide 11: Second-Quarter 2016 Allegion ACF

    Second-Quarter 2016 Allegion ACF Available Cash Flow 1 ($millions)  Improvement in ACF due to decreased operating cash requirements, increased earnings and reduced capital expenditures Working Capital 2 & Cash Conversion Cycle (CCC) 3 Affirming full year ACF of $280 to $300 million 1 Net cash from

  12. Slide 12: Capital Allocation Strategy

    Capital Allocation Strategy Leverage Management  Target 2.75-3.25x of gross Debt/Adj. EBITDA  Upgraded to investment grade by S&P during the second quarter 2016  June 30, 2016: 3.0x of gross Debt/Adj. EBITDA1 Organic Growth Shareholder M&A Investment Distribution  Expand core portfolio  Product

  13. Slide 13: Full-Year 2016 Guidance

    Full-Year 2016 Guidance Revenue EPS Prior FY Updated FY Prior FY Current FY Guidance Guidance Guidance Guidance Total Americas 4% to 5% 4.5% to 5% 2016 Reported EPS $3.15 to $3.35 $3.20 to $3.35 Organic Americas 5% to 6% 5.5% to 6% Adjustments ($0.05) to ($0.10) ($0.05) to ($0.10) Total EMEIA 25% to

  14. Slide 14: Summary

    Summary  Q2 revenue increased $65.4 million, +12.6% vs. prior year  Organic revenue growth +8.9%  Acquisitions contributing $40 million  Increased Q2 2016 adjusted operating margins +200 bps  All regions delivering operating margin improvement  EMEIA continues margin transformation; Adjusted o

  15. Slide 15: Allegion

    | i. ALLEGION

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