Allegion Plc · NYSE:ALLE
Allegion — Q3 2022 Earnings Presentation
16 slides from Allegion's earnings presentation, Oct 27, 2022
Slide 1: Third-Quarter 2022 Financial Results
Third-Quarter 2022 Financial Results October 27, 2022
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 continu
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 / Strength in Allegion Americas non-residential markets – leading indicators still positive; Demand Allegion Americas residential and Allegion International continue softening Revenue Strong operational performance driving record revenue Supply Chain / Continuous improvement o
Slide 5: Access Technologies Update
Access Technologies Update Together, we are leveraging synergies to drive greater value for employees, customers and shareholders ▪ Seamless access enhancement ▪ Recurring services ▪ Complementary product portfolio 5 Third-Quarter 2022 Results STANLEY ACCESS TECHNOLOGIES is used with permission. STA
Slide 6: Third-Quarter 2022 Financial Summary
Third-Quarter 2022 Financial Summary Revenue1 Adjusted OI Adjusted EBITDA Adjusted $Millions Margin1 Margin1 EPS1 +27.4% +100 bps +100 bps +5.1% $913.7 23.6% $1.64 $1.56 21.0% 22.6% $717.0 20.0% Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 ▪ Organic revenue growth of 18.6% ex-AT 20.0% 22.4% ex-AT
Slide 7: Third-Quarter 2022 Allegion EPS Performance
Third-Quarter 2022 Allegion EPS Performance M&A costs: ($0.16) Loss on divestiture: ($0.10) Non-cash purchase accounting related to AT: ($0.08) Access Technologies (“AT”) operations: $0.10 AT amortization of Inclusive of interest intangibles: ($0.04) expense related to funding AT acquisition * Adjus
Slide 8: Third-Quarter 2022 Revenue Results
Third-Quarter 2022 Revenue Results $Millions Q3 2022 Q3 2022 Reported Organic1 Growth Growth Americas 42.5% 25.8% International -13.6% -0.8% Total Allegion 27.4% 18.6% 1 Current Quarter Revenue Prior Quarter Revenue Organic Growth % Q3 2022 Price Volume Organic¹ Acq/Div Currency Total 12.6% 6.0% +18
Slide 9: Allegion Americas Results
Third-Quarter 2022 Allegion Americas Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions +42.5% +50 bps +80 bps 26.0% 27.1% 27.9% $747.2 25.5% $524.4 Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 ex-AT 25.5% 28.5% ex-AT 27.1% 29.8% Q3 Revenue Performance Q3 Adjusted Margin Performance ▪ Organic revenue
Slide 10: Allegion International Results
Third-Quarter 2022 Allegion International Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions -13.6% -180 bps -160 bps 200.0 150.0 $192.6 100.0 $166.5 16.1% 11.1% 14.5% 50.0 9.3% - Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 Q3 Revenue Performance Q3 Adjusted Margin Performance ▪ Organic revenue decl
Slide 11: 2022 Allegion ACF & Debt
2022 Allegion ACF & Debt Available Cash Flow1 $Millions Notes: ▪ Available cash flow in line with pre-pandemic levels ▪ Revolver borrowings outstanding $199M (down ~$140M from initial draw) ▪ Strong debt structure (80% fixed / 20% variable) ▪ Deleveraging post-acquisition as expected – current net l
Slide 12: Full-Year 2022 Revenue Outlook
Full-Year 2022 Revenue Outlook 2022 Revenue Outlook - Current Allegion Americas Allegion International Total Allegion Reported Reported: 22.5% to 23.5% Reported: -11.5% to -10.5% Reported: 13% to 14% & Organic1 Revenue FX: ~0% FX: ~(11%) FX: ~(3%) Outlook Acq/Div: ~9% Acq/Div: ~0% Acq/Div: ~6.5% Org
Slide 13: Full-Year 2022 EPS Outlook
Full-Year 2022 EPS Outlook Access Technologies (“AT”) EPS Reconciliation – Current Outlook EPS Reconciliation – Prior Outlook Current Outlook Prior Outlook Operational ~$0.20 Operational ~$0.20 2021 Reported EPS $5.34 2021 Reported EPS $5.34 Intangible Amort ~($0.08) Intangible Amort ~($0.13) Intere
Slide 14: Summary
Summary ▪ Outstanding performance ▪ Access Technologies off to a great start ▪ Global supply chain improving ▪ Continued strength in Allegion Americas non-residential end markets and global electronics demand 14 Third-Quarter 2022 Results
Slide 15: Va I
Va I aun Wa :. WN. (i ALLEGION™ . PIONEERING SAFETY
Slide 16: 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