Allegion Plc · NYSE:ALLE
Allegion — Q3 2020 Earnings Presentation
15 slides from Allegion's earnings presentation, Sep 24, 2020
Slide 1: Third-Quarter 2020 Financial Results
Third-Quarter 2020 Financial Results October 22, 2020
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 potenti
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: Third-Quarter 2020 Financial Summary
Third-Quarter 2020 Financial Summary Revenue1 Adjusted OI Adjusted YTD ACF1 $Millions Margin1 EPS1 $Millions -2.7% +20 bps +13.6% +11.3% $748.3 23.3% $1.67 $256.1 $728.4 23.1% $230.0 $1.47 Q3 19 Q3 20 Q3 19 Q3 20 Q3 19 Q3 20 Q3 19 Q3 20 ▪ Organic revenue decline of 3.4% ▪ Price and productivity more
Slide 5: Seamless Access Opportunities Grow
Seamless Access Opportunities Grow Investments in our strategic vision remain our priority ▪ Opportunities for seamless and healthy access across all environments – home, work and communities ▪ New suite of mobile-enabled Schlage locks and readers – with wave-to-open actuators – are meeting post-COV
Slide 6: Allegion EPS Performance
Third-Quarter 2020 Allegion EPS Performance $0.06 $0.02 $1.67 $0.15 $0.03 $1.58 $0.07 $1.47 $0.09 $1.40 Q3 19 Reported Restructure / Q3 19 Adjusted Interest / Tax Rate Share Count Operations Q3 20 Adjusted Restructure / Q3 20 Reported EPS M&A / Debt EPS Other, Net EPS Impairment EPS Refinance 6 Thir
Slide 7: Revenue Results
Third-Quarter 2020 Revenue Results Q3'20 Q3'20 $800.0 10.0% 5.8% 3.0% 6.4% Reported Organic1 $750.0 3.5% 4.3% 5.0% Growth Growth $700.0 0.0% $650.0 -3.4% Americas -5.1% -4.6% $600.0 -5.0% EMEA 7.7% 2.9% $550.0 $500.0 -18.5% -10.0% Asia Pacific -4.2% -6.8% -15.0% $450.0 $655.0 $731.2 $748.3 $719.5 $6
Slide 8: Americas Results
Third-Quarter 2020 Americas Results Revenue1 Adjusted Operating Income1 $Millions $Millions -5.1% -5.1% $567.8 $539.1 $175.6 $166.6 Q3 19 Q3 20 Q3 19 Q3 20 Q3 19 Q3 20 Adj OP Margin 30.9% 30.9% Q3 Revenue Performance Adj EBITDA % 32.4% 32.5% ▪ Organic revenue decline of 4.6% ▪ Good price realization
Slide 9: EMEA Results
Third-Quarter 2020 EMEA Results Revenue1 Adjusted Operating Income1 $Millions $Millions +7.7% +42.5% $137.8 $148.4 $17.1 $12.0 Q3 19 Q3 20 Q3 19 Q3 20 Q3 19 Q3 20 Adj OP Margin 8.7% 11.5% Q3 Revenue Performance Adj EBITDA % 14.7% 17.3% ▪ Organic revenue growth of 2.9% ▪ Organic growth driven by stre
Slide 10: Asia-Pacific Results
Third-Quarter 2020 Asia-Pacific Results Revenue1 Adjusted Operating Income1 $Millions $Millions -4.2% -27.3% $4.4 $42.7 $3.2 $40.9 Q3 19 Q3 20 Q3 19 Q3 20 Q3 19 Q3 20 Adj OP Margin 10.3% 7.8% Adj EBITDA % 12.9% 11.2% Q3 Revenue Performance ▪ Organic revenue decline of 6.8% Q3 Adjusted Operating Marg
Slide 11: Year-to-Date 2020 Allegion ACF
Year-to-Date 2020 Allegion ACF Strong cash generation; Liquidity stable Available Cash Flow1 Working Capital2 & Cash Conversion Cycle (CCC)3 $Millions $Millions $256.1 $230.0 Working Capital % of Revenue Cash Conversion Cycle 7.6% 64.7 64.7 6.6% Q3 YTD Q3 YTD 2019 2020 ▪ Increase in ACF driven by im
Slide 12: Solid Balance Sheet / Capital Structure
Solid Balance Sheet / Capital Structure Leverage ▪ Untapped $500 million credit facility 3.4 2.9 ▪ Debt covenants are well 2.6 within limits; No near-term 2.3 2.2 debt maturities 2.1 3.0 ▪ Quarterly dividend increase of 18.5% through Q3; Sixth 2.3 1.8 1.9 consecutive year of annual 1.6 1.6 dividend
Slide 13: Full-Year 2020 Outlook
Full-Year 2020 Outlook Prior FY FY Outlook Outlook Total Americas -6.5% to -6% -9% to -8% Organic Americas -6% to -5.5% -8.5% to -7.5% Total EMEA -5.5% to -4.5% -11% to -10% Organic EMEA -7.5% to -6.5% -10% to -9% Total AP -13.5% to -12.5% -16% to -14% Organic AP -13% to -12% -12.5% to -10.5% Assump
Slide 14: Summary
Third-Quarter 2020 Summary ▪ Q3 revenue decline of 2.7%; Organic revenue¹ decline of 3.4% ▪ Q3 adjusted operating margin¹ of 23.3%; Up 20 bps vs prior year ▪ Adjusted Q3 EPS¹ of $1.67 or +13.6% growth vs prior year ▪ Improving full-year revenue outlook ▪ Total and organic revenue decline of 6% to 6.
Slide 15: 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