Slide 1: Third-Quarter 2016 Results
Allegion Third-Quarter 2016 Results October 27, 2016
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 2016 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, earnings from continuing operations, EPS from continuing operations, and EBITDA include items that are considered to be unusual or infrequent in nature such as go
Slide 4: Third-Quarter Financial Highlights
Third-Quarter Financial Highlights Revenue of $581.1 million increased +6.7%, +5.0% on an organic basis1 Americas organic revenue growth +5.6% EMEIA organic revenue growth +1.6% Asia Pacific organic revenue growth +7.3%2 Adjusted operating income of $126.7 million increased +8.4%; adjusted
Slide 5: Schlage LE Series
Schlage LE Series Mortise Lock Launching Q1 2017 Electro-mechanical convergence in commercial environments Wireless locks build on proven Schlage L-Series mechanical mortise platform Compatible with pre-existing systems to extend the benefit of electronic access control deeper into buildings
Slide 6: 2016 Allegion Revenue Results
2016 Allegion Revenue Results Solid Organic Growth; Acquisitions Contributing 1Organic excludes acquisitions, divestitures, and currency impacts 6 | Third-Quarter 2016 Results
Slide 7: Third-Quarter 2016 Allegion Results
Third-Quarter 2016 Allegion Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin +30bps Total growth +6.7%; organic growth +5.0% Modest margin expansion from incremental volume, net of investments Organic growth across all reg
Slide 8: Third-Quarter 2016 Allegion EPS Performance
Third-Quarter 2016 Allegion EPS Performance Q3 Interest Expense ($0.02) Other Income/Exp. ($0.03) Volume/Mix $0.10 Price $0.04 Productivity/Inflation ($0.01) FX $0.01 Loss on Divestiture $1.14 Impairment ($0.87) M&A $0.05 Restructure ($0.03) Restructure $0.01 M&A ($0.01) 8 | Third-Quarter 2016 Resul
Slide 9: Third-Quarter 2016 Americas Results
Third-Quarter 2016 Americas Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin +110bps Total growth +4.1%; organic growth +5.6% Favorable margin improvement driven by High-single digit non-residential growth strong volume le
Slide 10: Third-Quarter 2016 EMEIA Results
Third-Quarter 2016 EMEIA Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin -10bps Total growth +27.2%; organic growth +1.6% Base business shows margin expansion, Acquisitions contributed approximately $25 offset by margin d
Slide 11: Third-Quarter 2016 Asia Pacific Results
Third-Quarter 2016 Asia Pacific Results Revenue Adjusted Operating Income(1) ($millions) ($millions) Q3 15 Q3 16 Syst Integration (1.1) - Mech/Elec Hdw 1.8 1.8 Total 0.7 1.8 Q3 Revenue Performance Q3 Adjusted Operating Margin +420bps Total growth -16.4%; organic growth +7.3% Year over year opera
Slide 12: Third-Quarter 2016 Allegion ACF
Third-Quarter 2016 Allegion ACF Available Cash Flow 1 ($millions) Improvement in ACF due to increased earnings Working Capital 2 & Cash Conversion Cycle (CCC) 3 Raising full year ACF guidance to approximately $300 million 1 Net cash from continuing operating activities less capital expenditures 2
Slide 13: Full-Year 2016 Guidance
Full-Year 2016 Guidance Revenue EPS Prior FY Updated FY Prior Annual Current Annual Guidance Guidance Guidance Guidance Total Americas 4.5% to 5% 4.5% to 5% 2016 Reported EPS $3.20 to $3.35 $2.40 to $2.45 Organic Americas 5.5% to 6% 5.5% to 6% Adjustments $0.05 to $0.10 ~ $0.98 Total EMEIA 29% to 31
Slide 14: Summary
Summary Q3 revenue increased $36.6 million, +6.7% vs. prior year Organic revenue growth +5.0% Acquisitions contributing $26.4 million Increased Q3 2016 adjusted operating margins +30 bps Adjusted EPS of $0.93, in-line with our annual expectation Updating and tightening full-year outlook
Slide 15: Allegion
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