Slide 1: Second-Quarter 2017 Results
Allegion Second-Quarter 2017 Results July 27, 2017
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 2017 financial performance, the Company’s growth strategy, the Company’s capital allocation strategy, the Compa
Slide 3: Safe Harbor
Safe Harbor The Company defines the presented non-GAAP measures as follows: Adjustments to revenue, operating income, operating margin, net earnings, EPS and EBITDA include items that are considered to be unusual or infrequent in nature such as goodwill impairment charges, restructuring charges, a
Slide 4: Second-Quarter Financial Highlights
Second-Quarter Financial Highlights Revenue of $627 million increased +7.2%, +6.2% on an organic basis 1 Americas organic revenue growth +6.1% EMEIA organic revenue growth +6.3% Asia-Pacific organic revenue growth +7.8% Adjusted operating income of $136 million increased 8.2%; adjusted ope
Slide 5: Organic Investments
Organic Investments Driving above-market growth Channel Segmentation & Initiatives Innovation & New Product Development Strategic Relationships in Connected Products 5 | Second-Quarter 2017 Results
Slide 6: Allegion Revenue Results
Second-Quarter 2017 Allegion Revenue Results Strong Organic Growth (volume & price); Contributions from Acquisitions Partially Offset by Currency Headwinds 1 Organic excludes acquisitions and currency impacts See press release for non-GAAP reconciliations 6 | Second-Quarter 2017 Results
Slide 7: Allegion Results
Second-Quarter 2017 Allegion Results Revenue Adjusted Operating Income1 ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +20bps Total reported growth +7.2%; Organic growth Operating leverage on incremental volume is +6.2% partially offset by unfavorable mix Mid-singl
Slide 8: Allegion EPS Performance
Second-Quarter 2017 Allegion EPS Performance Q2 8 | Second-Quarter 2017 Results
Slide 9: Americas Results
Second-Quarter 2017 Americas Results Revenue Adjusted Operating Income1 ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +20bps Total reported growth +7.4%; Organic growth +6.1%. Strong price for the quarter Solid contribution from price and volume Price and volume m
Slide 10: EMEIA Results
Second-Quarter 2017 EMEIA Results Revenue Adjusted Operating Income1 ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin -30bps Total reported revenue growth +6.3%; Organic Price and productivity offset inflation and growth +6.3% incremental investments Strong growth in
Slide 11: Asia-Pacific Results
Second-Quarter 2017 Asia-Pacific Results Revenue Adjusted Operating Income1 ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin -70bps Total reported growth +9.0%; Organic growth Price, volume and productivity is offset by +7.8% inflation, unfavorable regional mix and S
Slide 12: Allegion ACF
Second-Quarter 2017 Allegion ACF 1 Available Cash Flow ($millions) Decrease in ACF is due to $50 million discretionary pension funding in Q1 and is partially offset by increased earnings Working Capital2 & Cash Conversion Cycle (CCC)3 Affirming Full-Year ACF Guidance Range of $300 to $320 Million
Slide 13: Full-Year 2017 Guidance
Full-Year 2017 Guidance Revenue EPS Prior FY Updated FY Prior Annual Current Annual Guidance Guidance Guidance Guidance 2017 Reported EPS $3.57 to $3.72 $3.55 to $3.72 Total Americas 7% to 8% 7.5% to 8.5% Organic Americas 6% to 7% 6.5% to 7.5% Adjustments $0.03 $0.08 to $0.10 Total EMEIA -1% to 1% 2
Slide 14: Summary
Summary Q2 revenue increased $42.1 million, +7.2% vs. prior year Organic revenue growth +6.2% Acquisitions contributing $11.0 million Increased Q2 2017 adjusted operating margins +20 bps Adjusted EPS of $1.11 increased +12.1% Affirming Available Cash Flow Guidance $300 to $320 million
Slide 15: ALLEGION
WN. ALLEGION