Slide 1: Second-Quarter 2022 Financial Results
Second-Quarter 2022 Financial Results July 28, 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: John H. Stone Joins Allegion as President & CEO
John H. Stone Joins Allegion as President & CEO Right leader to take Allegion into its next chapter Transformative leader and seasoned executive with 18 years of senior leadership experience Proven ability to translate technological trends into solutions that meet evolving customer needs, while deli
Slide 5: Building Our Future Together
Building Our Future Together Seamless 2022 Reported Revenue Impact ~9% in FY Americas High-Growth Access Services Operational Performance ~$0.20 per share¹ Enhancement Intangible Asset Amortization ~($0.13) per share¹ Strong Robust Interest Expense ~($0.17) per share¹ Financial Product Profile Portf
Slide 6: Business Review
Business Review Market / Allegion Americas non-residential markets remain strong; Demand Allegion Americas residential and Allegion International markets softening Supply Chain / Managing supply chain challenges; Electronics Mechanical supply chain improving; Electronic components difficulties persi
Slide 7: Second-Quarter 2022 Financial Summary
Second-Quarter 2022 Financial Summary Revenue1 Adjusted OI Adjusted EBITDA Adjusted $Millions Margin1 Margin1 EPS1 +3.5% +40 bps +30 bps +3.8% $773.1 $746.9 22.2% 22.5% 19.6% 20.0% $1.37 $1.32 Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 ▪ Organic revenue growth of 6.4% ▪ Price and productivity e
Slide 8: Second-Quarter 2022 Allegion EPS Performance
Second-Quarter 2022 Allegion EPS Performance 1 1 Includes a ($0.05) per share impact related to FX 8 Second-Quarter 2022 Results See press release for non-GAAP reconciliations
Slide 9: Second-Quarter 2022 Revenue Results
Second-Quarter 2022 Revenue Results $Millions Q2'22 Q2'22 1 Reported Organic Growth Growth Allegion Americas 7.8% 8.0% Allegion International -8.5% 1.9% Total 3.5% 6.4% 1 Current Quarter Revenue Prior Quarter Revenue Organic Growth % Q2 2022 Price Volume Organic¹ Acq/Div Currency Total +8.4% -2.0% +
Slide 10: Second-Quarter 2022 Allegion Americas Results
Second-Quarter 2022 Allegion Americas Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions -150 bps -160 bps +7.8% $592.3 27.4% 29.0% 27.4% $549.4 25.9% Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 Q2 Revenue Performance Q2 Adjusted Margin Performance ▪ Organic revenue growth of 8.0% ▪ Sequential margi
Slide 11: Second-Quarter 2022 Allegion International Results
Second-Quarter 2022 Allegion International Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions -8.5% -100 bps -60 bps 200.0 150.0 $197.5 100.0 $180.8 14.2% 13.6% 50.0 9.4% 8.4% - Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 Q2 Revenue Performance Q2 Adjusted Margin Performance ▪ Organic revenue growth
Slide 12: 2022 Allegion ACF & Debt
2022 Allegion ACF & Debt Available Cash Flow1 $Millions Notes: ▪ YTD ACF approximates historical trends ▪ Investing in inventory to create supply chain resiliency ▪ Company utilized revolver and senior notes issuance to fund acquisition ▪ Near-term focus to utilize cash to manage leverage Full-year
Slide 13: Full-Year 2022 Revenue Outlook
Full-Year 2022 Revenue Outlook 2022 Revenue Outlook - Current Allegion Americas Allegion International Total Allegion Reported Reported: 21% to 22% Reported: -8% to -7% Reported: 13% to 14% & Organic1 Revenue FX: ~0% FX: ~(10%) FX: ~(2.5%) Outlook Acq/Div: ~9% Acq/Div: ~0% Acq/Div: ~6.5% Organic: 12
Slide 14: Full-Year 2022 EPS Outlook
Full-Year 2022 EPS Outlook EPS Reconciliation – EPS Reconciliation – incl. Access Technologies Prior Outlook 2021 Reported EPS $5.34 2021 Reported EPS $5.34 Adjustments¹ ($0.15) Adjustments¹ ($0.15) 2021 Adjusted EPS $5.19 2021 Adjusted EPS $5.19 Operational / FX ~$0.85 to $0.95 Operational / FX ~$0
Slide 15: Summary
Summary ▪ Excited to welcome John Stone as president and CEO ▪ Closed on the Access Technologies acquisition at the beginning of July ▪ Solid price realization – price and productivity exceeded inflation in the quarter – anticipate this will continue ▪ Allegion Americas non-residential end markets r
Slide 16: Va I
Va I aun Wa :. WN. (i ALLEGION™ . PIONEERING SAFETY
Slide 17: 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