Allegion Plc · NYSE:ALLE
Allegion — Q4 2022 Earnings Presentation
17 slides from Allegion's earnings presentation, Feb 22, 2023
Slide 1: Fourth-Quarter 2022 Financial Results
Fourth-Quarter 2022 Financial Results February 22, 2023
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, but not limited to, statements
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: Business Review
Business Review Market / Americas non-residential demand remains strong, while residential and Demand international markets continue to be soft; Electronics demand still strong globally Supply Chain / Mechanical backlogs and lead times normalized; Electronics Electronics demand and backlogs stay ele
Slide 5: Fourth-Quarter 2022 Financial Summary
Fourth-Quarter 2022 Financial Summary Revenue1 Adjusted OI Adjusted EBITDA Adjusted $Millions Margin1 Margin1 EPS1 +21.5% +310 bps +310 bps +44.1% $861.5 19.5% $1.60 22.3% $709.2 16.4% 19.2% $1.11 Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Ex-AT 16.4% 20.7% Ex-AT 19.2% 23.1% ▪ Organic revenue g
Slide 6: Supply Chain Resiliency
Supply Chain Resiliency ▪ New 350,000-square-foot manufacturing operation in Mexico ▪ Adds in-region production for Allegion Americas ▪ Production expected to commence in late 2023 ▪ Improves future cost position 6 Fourth-Quarter 2022 Results
Slide 7: Allegion EPS Performance
Fourth-Quarter 2022 Allegion EPS Performance Predominately driven by interest expense Access Technologies (“AT”) related to funding AT operations: $0.12 acquisition ~($0.08) AT amortization of intangibles: ($0.04) * Adjustments to EPS in 2021 and 2022 include restructuring charges, acquisition and i
Slide 8: Revenue Results
Fourth-Quarter 2022 Revenue Results 18.6% $Millions 11.4% Q4 2022 Q4 2022 FY 2022 FY 2022 6.4% 6.4% Reported Organic1 Reported Organic1 Growth Growth Growth Growth Americas 36.9% 18.0% 23.1% 14.4% -1.4% International -15.3% -4.3% -9.4% 1.0% Total Allegion 21.5% 11.4% 14.1% 10.7% $709 $724 $773 $914
Slide 9: Allegion Americas Results
Fourth-Quarter 2022 Allegion Americas Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions +36.9% +290 bps +320 bps $683.9 26.1% 24.0% 22.9% 21.1% $499.5 Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Ex-AT 21.1% 26.4% Ex-AT 22.9% 28.0% Q4 Revenue Performance ▪ Organic revenue growth of 18%; Price realiz
Slide 10: Allegion International Results
Fourth-Quarter 2022 Allegion International Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions -15.3% -90 bps -90 bps $209.7 14.0% 19.0% $177.6 13.1% 18.1% Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Q4 Revenue Performance Q4 Adjusted Margin Performance ▪ Organic revenue decline of 4.3%; Price realiz
Slide 11: 2022 Allegion ACF / Balance Sheet
2022 Allegion ACF / Balance Sheet Available Cash Flow1 Working Capital2 Capital Expenditures Net Leverage3 $Millions $Millions %Revenue $443.2 $395.5 Working Capital % of Revenue 7.0% 4.6% Full Year Full Year 2021 2022 2021 2022 ▪Lower FY ACF due to higher working ▪Working capital increase driven by
Slide 12: Full-Year 2023 Outlook
Full-Year 2023 Outlook 2023 Outlook EPS Reconciliation 2022 Reported EPS $5.19 Allegion Allegion Total Reported Americas International Allegion Adjustments ² $0.50 & Organic1 Acquired Intangible Asset Amortization³ $0.30 Revenue Reported: 11.5% to 13.5% Reported: -1% to 1% Reported: 9% to 10.5% Outl
Slide 13: Summary
Summary ▪ Electronic solutions continue to drive significant growth opportunities ▪ Americas non-residential demand remains solid ▪ Access Technologies performing well ▪ Operating margins improving; Focused on working capital improvement Great finish to the year; Strong momentum entering 2023 13 Fou
Slide 14: Appendix
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Slide 15: Full-Year 2022 Financial Summary
Full-Year 2022 Financial Summary Revenue1 Adjusted OI Adjusted EBITDA Adjusted ACF1 $Millions Margin1 Margin1 EPS1 +14.1% +70 bps +50 bps +9.6% -10.8% $3,271.9 $5.69 $443.2 19.5% 18.8% 22.1% $5.19 $2,867.4 21.6% $395.5 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 Ex-AT 18.8% 20.1% Ex-
Slide 16: Full-Year 2022 Allegion EPS Performance
Full-Year 2022 Allegion EPS Performance Access Technologies (“AT”) operations: $0.22 Inclusive of interest expense related to AT amortization of funding AT intangibles: ($0.08) acquisition ~($0.17) Other Acq/Div: $0.02 * Adjustments to EPS in 2021 and 2022 include restructuring charges, acquisition
Slide 17: 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