Slide 1: Allegion Third-Quarter 2017 Results
Allegion Third-Quarter 2017 Results October 26, 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: Third-Quarter Financial Highlights
Third-Quarter Financial Highlights Revenue of $609.4 million increased +4.9%, +2.7% on an organic basis 1 Americas organic revenue growth +2.8% EMEIA organic revenue growth +3.1% Asia-Pacific organic revenue growth +0.4% Adjusted operating income of $134.6 million increased +6.2%; adjusted
Slide 5: Foundation for Electro-Mechanical Convergence
Foundation for Electro-Mechanical Convergence Security our customers expect; the convenience & connectivity they desire EXTENSIVE MECHANICAL HERITAGE LATEST TECHNOLOGY Competitive advantage for growth in the ongoing electro-mechanical convergence 5 | Third-Quarter 2017 Results
Slide 6: Allegion Revenue Results
Third-Quarter 2017 Allegion Revenue Results Q3 Q3 1 Q3-17 Reported Organic Growth Growth Price 2.4% Americas 4.4% 2.8% Volume 0.3% EMEIA 7.5% 3.1% Organic 2.7% Asia Pacific 2.1% 0.4% Acquisition 1.0% Currency 1.2% Total 4.9% Total Allegion 4.9% 2.7% Strong Price; Acquisition & Currency Tailwinds Con
Slide 7: Allegion Results
Third-Quarter 2017 Allegion Results Revenue Adjusted Operating Income1 ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin +30bps Total reported growth +4.9%; Organic growth Price and productivity more than offset +2.7% inflation and incremental investments Strong price
Slide 8: Allegion EPS Performance
Third-Quarter 2017 Allegion EPS Performance Q3 8 | Third-Quarter 2017 Results
Slide 9: Americas Results
Third-Quarter 2017 Americas Results Revenue Adjusted Operating Income1 ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin -10bps Total reported growth +4.4%; Organic growth +2.8% Price and productivity exceeded inflation Strong contribution from price Margin decline
Slide 10: EMEIA Results
Third-Quarter 2017 EMEIA Results Revenue Adjusted Operating Income1 ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin +220bps Total reported revenue growth +7.5%; Organic Price and productivity offset inflation and growth +3.1% incremental investments Strong growth in
Slide 11: Asia-Pacific Results
Third-Quarter 2017 Asia-Pacific Results Revenue Adjusted Operating Income ($millions) ($millions) Q3 Revenue Performance Q3 Adjusted Operating Margin +130bps Total reported growth +2.1%; Organic growth Price, FX and productivity more than offset +0.4% inflation and incremental investments Tota
Slide 12: Allegion ACF
Third-Quarter 2017 Allegion ACF 1 Available Cash Flow ($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 Full-Year ACF Guidance of ~$300 Million (inclusive of $50 millio
Slide 13: Capital Structure
Capital Structure September 30, October 3, Completed Debt Refinancing 2017 2017 in October 2017 Investment grade by all three rating Term Loan $ 700.0 $ 700.0 agencies Revolving Facility 165.0 Senior Notes 600.0 800.0 Unsecured capital structure Other short-term debt 1.0 1.0 Extended maturity
Slide 14: Full-Year 2017 Guidance
Full-Year 2017 Guidance Revenue EPS Prior Annual Current Annual Prior FY Updated FY Guidance Guidance Guidance Guidance 2017 Reported EPS $3.55 to $3.72 $3.21 to $3.26 Total Americas 7.5% to 8.5% 7% to 7.5% Adjustments¹ $0.08 to $0.10 $0.54 Organic Americas 6.5% to 7.5% 5.5% to 6% 2017 Adjusted EPS
Slide 15: Summary
Summary Q3 revenue increased $28.3 million, +4.9% vs. prior year Organic revenue growth +2.7% YTD organic revenue growth +5.5% Increased Q3 2017 adjusted operating margins +30 bps Q3 Adjusted EPS of $1.02 increased +9.7% YTD Adjusted EPS increased +12.6% Available Cash Flow Guidance of
Slide 16: Allegion
| i. ALLEGION