Allegion Plc · NYSE:ALLE
Allegion — Q2 2019 Earnings Presentation
18 slides from Allegion's earnings presentation, Jul 25, 2019
Slide 1: Allegion Second-Quarter 2019 Results
Allegion Second-Quarter 2019 Results July 25, 2019
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 Company
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: 2019 Second-Quarter Update
2019 Second-Quarter Update Revenue Total top-line growth of 3.8% and organic growth of 3% in the quarter; Grew 5.2% Growth¹ in the first half of the year and 4.3% organically Electronics Americas electronics growth of ~9% in the quarter Non-residential U.S. end markets remain healthy – continued str
Slide 5: Second-Quarter Financial Summary
Second-Quarter Financial Summary 1 1 1 1 Revenue Adjusted OI Margin Adjusted EPS YTD ACF $Millions $Millions Up Up Up Down 3.8% 20 bps 0.8% 20.6% $1.25 $1.26 $731.2 21.3% 21.5% $704.7 $97.8 $77.7 Q2 18 Q2 19 Q2 18 Q2 19 Q2 18 Q2 19 Q2 YTD Q2 YTD 2018 2019 ▪ Organic growth of 3% led ▪ Price and produ
Slide 6: Vision and Strategy
Vision Seamless access and a safer world Allegion creates value by securing people and assets with Strategy seamless access wherever they reside, work and thrive Deliver Expand New in Core Value in Markets Access Be the Capital Partner of Allocation Choice Enterprise Excellence 6 | Second-Quarter 20
Slide 7: Partner of Choice for Connected Home
Partner of Choice for Retailers Home security Home automation Broadband providers Connected Home National home builders Works with 7 | Second-Quarter 2019 Results All marks are the property of their respective owners.
Slide 8: Allegion Revenue Results
Second-Quarter 2019 Allegion Revenue Results Strong price realization drove organic growth 8 | Second-Quarter 2019 Results 1Organic excludes acquisitions and currency impacts
Slide 9: Allegion Results
Second-Quarter 2019 Allegion Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +20 bps ▪ Solid leverage on incremental volume ▪ Organic growth +3% ▪ Price and productivity exceeded continued ▪ Strong price performance at +2.2% i
Slide 10: Allegion EPS Performance
Second-Quarter 2019 Allegion EPS Performance Q2 10 | Second-Quarter 2019 Results See press release for non-GAAP reconciliations
Slide 11: Americas Results
Second-Quarter 2019 Americas Results 1 Revenue 1 Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +20 bps ▪ Organic growth +3.3% ▪ Price and productivity exceeded inflation ▪ Strong price realization +2.5% ▪ Solid leverage on incremental volume ▪
Slide 12: EMEIA Results
Second-Quarter 2019 EMEIA Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin -20 bps ▪ Organic growth +1.7% ▪ Price and productivity exceeded inflation ▪ Solid price realization; Significant currency ▪ Currency pressure (30 bps h
Slide 13: Asia-Pacific Results
Second-Quarter 2019 Asia-Pacific Results 1 1 Revenue Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +140 bps ▪ Organic growth +4.7% ▪ Price and productivity significantly exceeded inflation ▪ Acquisitions contributed 47.3% to total growth ▪ Incr
Slide 14: Allegion ACF
Second-Quarter 2019 Allegion ACF Available Cash Flow (ACF)¹ ($millions) ▪ Decrease in ACF driven by increased capex and higher working capital to build inventory in anticipation of Turkey production closure Working Capital2 & Cash Conversion Cycle (CCC)3 Working Capital % of Cash Conversion Cycle Re
Slide 15: Full-Year 2019 Outlook
Full-Year 2019 Outlook Prior FY Prior FY Revenue EPS FY Outlook Outlook FY Outlook Outlook Total Americas 5.5% to 6% 5% to 6% 2019 Reported EPS $4.50 to $4.65 $4.60 to $4.75 Organic Americas 5.5% to 6% 5% to 6% Adjustments¹ $0.25 to $0.30 ~$0.15 Total EMEIA -3% to -2% Flat to 2% Organic EMEIA 2% to
Slide 16: Summary
Summary ▪ Q2 revenue growth 3.8% versus prior year; Organic revenue growth 3% ▪ YTD revenue growth 5.2%; Organic revenue growth 4.3% ▪ Q2 2019 adjusted operating margins +20 bps ▪ Adjusted Q2 EPS of $1.26 (+0.8%) ▪ Updating full-year revenue outlook – total and organic growth of 4.5% to 5.5% ▪ Updat
Slide 17: ALLEGION
| i. ALLEGION
Slide 18: 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