Allegion Plc · NYSE:ALLE
Allegion — Q1 2020 Earnings Presentation
17 slides from Allegion's earnings presentation, Apr 23, 2020
Slide 1: Allegion First-Quarter 2020 Results
Allegion First-Quarter 2020 Results April 23, 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 potenti
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: 2020 First-Quarter Update – COVID-19
2020 First-Quarter Update – COVID-19 “During this time of uncertainty, we remain deeply committed to do what’s right for our employees, customers and the communities where we operate, as well as our business health and essential critical infrastructure.” – CEO David D. Petratis ▪ Employee health and
Slide 5: 2020 First-Quarter Update
2020 First-Quarter Update Revenue growth of 3% and organic growth of 4.3% in the first quarter – driven Revenue Growth¹ by Americas growth of 7.7% (8.2% organic growth) Electronics Americas electronics growth of 12% in the quarter Adjusted Adjusted operating margin up 190 bps in the quarter, led by
Slide 6: First-Quarter 2020 Financial Summary
First-Quarter 2020 Financial Summary 1 1 1 1 Revenue Adjusted OI Margin Adjusted EPS YTD ACF $Millions $Millions +3.0% +190 bps +18.2% +176.3% $674.7 $1.04 $19.0 19.0% $655.0 17.1% $0.88 -$24.9 Q1 19 Q1 20 Q1 19 Q1 20 Q1 19 Q1 20 Q1 19 Q1 20 ▪ Organic growth of 4.3% ▪ Price and productivity more ▪ A
Slide 7: 2020 First-Quarter Revenue Results
2020 First-Quarter Revenue Results Q1'20 Q1'20 Q1 Reported Organic1 2020 Growth Growth Price 1.3% Americas 7.7% 8.2% Volume 3.0% EMEIA -9.1% -6.2% Organic 4.3% Asia Pacific -11.1% -4.9% Divestitures -0.4% Currency -0.9% Total 3.0% Total Allegion 3.0% 4.3% Strong growth in the Americas offsetting wea
Slide 8: First-Quarter 2020 Allegion Results
First-Quarter 2020 Allegion Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) Q1 Revenue Performance Q1 Adjusted Operating Margin +190 bps ▪ Organic revenue growth of 4.3% ▪ Solid operating leverage on incremental volume from the Americas region ▪ Good price realization ▪ Price a
Slide 9: Allegion EPS Performance
First-Quarter 2020 Allegion EPS Performance Q1 $0.02 $0.04 $0.16 $1.04 $(1.04) $(0.02) $(0.04) $0.04 $0.88 $0.84 $0.00 Q1 19 Restructure / Q1 19 Operations Tax Rate Share Count Investments Interest / Q1 20 Restructure / Q1 20 Reported EPS M&A Costs Adjusted EPS Other, Net / Adjusted EPS M&A / Report
Slide 10: Americas Results
First-Quarter 2020 Americas Results 1 Revenue 1 Adjusted Operating Income ($millions) ($millions) Q1 Revenue Performance Q1 Adjusted Operating Margin +270 bps ▪ Organic revenue growth of 8.2% ▪ Strong operating leverage on incremental volume ▪ Solid price realization of 1.6% ▪ Price and productivity
Slide 11: EMEIA Results
First-Quarter 2020 EMEIA Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) Q1 Revenue Performance Q1 Adjusted Operating Margin -570 bps ▪ Organic revenue decline of 6.2% ▪ Inflation exceeded price plus productivity ▪ Lower volume driven by softening end markets ▪ Reduced operatin
Slide 12: Asia-Pacific Results
First-Quarter 2020 Asia-Pacific Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) Q1 Revenue Performance Q1 Adjusted Operating Margin -300 bps ▪ Organic revenue decline of 4.9% ▪ Reduced operating income on significant volume declines and unfavorable mix ▪ Lower demand due to fur
Slide 13: Allegion ACF
First-Quarter 2020 Allegion ACF Available Cash Flow1 ($ millions) $19.0 ▪ Increase in ACF driven by incremental net earnings (excluding non-cash impairment charges) and improvements in net working capital $(24.9) Q1 19 Q1 20 Working Capital2 & Cash Conversion Cycle (CCC)3 Working Capital % of Revenu
Slide 14: Capital Structure
Capital Structure Leverage 3.4 2.9 2.6 ▪ 1.6x Net debt / EBITDA at the 2.3 2.1 end of 2019 3.0 2.3 1.9 1.8 1.6 ▪ No near-term debt maturities 2015 2016 2017 2018 2019 ▪ Untapped $500 million credit Gross Leverage Net Leverage facility ▪ Dividend increase of 18.5% in Term Loan Debt Maturity Profile Q
Slide 15: Investment Thesis
Investment Thesis ▪ Above-market organic growth1 ▪ Strength of channel / large installed base ▪ Q1 saw total company organic growth at 4.3%; Americas at 8.2% ▪ Seamless access / electronics growth ▪ Electronics and keyless convergence trend ▪ Americas delivered 12% electronics growth in Q1 ▪ Industr
Slide 16: ALLEGION
| i. ALLEGION
Slide 17: 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