Allegion Plc · NYSE:ALLE
Allegion — Q2 2018 Earnings Presentation
16 slides from Allegion's earnings presentation, Jul 26, 2018
Slide 1: Allegion Second-Quarter 2018 Results
Allegion Second-Quarter 2018 Results July 26, 2018
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 2018 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 operating income, operating margin, net earnings, EPS and EBITDA include items such as goodwill impairment charges, restructuring charges, asset impairments, merger and acquisitions costs, debt refinancing c
Slide 4: Second-Quarter Highlights
Second-Quarter Highlights Strong Revenue Growth ▪ Led by Americas ▪ Acquisitions contributing nicely ▪ Growth in Electronics continues to be strong globally Slight Margin Declines ▪ Inflationary pressures continue ▪ Acquisitions dilutive to margins, as expected ▪ Adjusted operating margins excluding
Slide 5: Second-Quarter Financial Summary
Second-Quarter Financial Summary ▪ Revenue of $704.7 million increased +12.4%, +5.2% on an organic basis1 ▪ Americas organic revenue growth +6.6% ▪ EMEIA organic revenue growth +1.4% ▪ Asia-Pacific organic revenue growth +0.7% ▪ Adjusted2 operating income of $150.1 million increased +9.6%; Adjusted
Slide 6: Acquisitions
Acquisitions GWA Door & Access Business ISONAS ▪ Adds market-leading ▪ Adds innovative residential brand, electronic access control Gainsborough and power over ethernet ▪ Significantly increases ▪ Expands Allegion’s non- scale in Asia Pacific residential technology and intellectual property ▪ Accele
Slide 7: Allegion Revenue Results
Second-Quarter 2018 Allegion Revenue Results Double-Digit Top-line Growth with Solid Volume & Price 1 Organic excludes acquisitions and currency impacts See press release for non-GAAP reconciliations 7 | Second-Quarter 2018 Results
Slide 8: Allegion Results
Second-Quarter 2018 Allegion Results Revenue Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin -50bps ▪ Total revenue growth +12.4%; Organic growth ▪ Inflation slightly exceeded price and +5.2% productivity (less than $1 million) ▪ Strong organic g
Slide 9: Allegion EPS Performance
Second-Quarter 2018 Allegion EPS Performance Q2 9 | Second-Quarter 2018 Results
Slide 10: Americas Results
Second-Quarter 2018 Americas Results Revenue Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin -70bps ▪ Total revenue growth +12.4%; Organic growth +6.6% ▪ Favorable product and business mix more than offset the impact of inflation in excess of pri
Slide 11: EMEIA Results
Second-Quarter 2018 EMEIA Results Revenue Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin +120bps ▪ Total revenue growth +14.4%; Organic growth ▪ Price and productivity more than offset inflation +1.4% and investments ▪ Solid price for the quarte
Slide 12: Asia-Pacific Results
Second-Quarter 2018 Asia-Pacific Results Revenue Adjusted Operating Income ($millions) ($millions) Q2 Revenue Performance Q2 Adjusted Operating Margin -520bps ▪ Total revenue growth +3.1%; Organic growth +0.7% ▪ Inflation exceeded price and productivity ▪ Total growth driven by FX tailwinds ▪ Unfavo
Slide 13: Allegion ACF
Second-Quarter 2018 Allegion ACF Available Cash Flow1 ($millions) ▪ Improvement in ACF is due to Q1 2017 $50 million discretionary pension funding and higher net income; Partially offset by increased working capital Q2 YTD 2017 Q2 YTD 2018 Working Capital2 & Cash Conversion Cycle (CCC)3 Affirming Fu
Slide 14: Full-Year 2018 Outlook
Full-Year 2018 Outlook Revenue EPS FY Outlook Prior FY Outlook FY Outlook Prior FY Outlook Total Americas 10.5% to 11.5% 10% to 11% 2018 Reported EPS $4.15 to $4.35 $4.20 to $4.35 Organic Americas 4.5% to 5.5% 4% to 5% Adjustments¹ ~$0.15 to $0.20 ~$0.15 Total EMEIA 14% to 15% 13% to 15% 2018 Adjust
Slide 15: Summary
Summary ▪ Q2 revenue increased $77.7 million, +12.4% versus prior year ▪ Organic revenue growth +5.2% ▪ Acquisitions and currency also contributing to total revenue growth ▪ Q2 2018 adjusted operating margins decreased -50 bps; flat excluding acquisitions ▪ Adjusted EPS of $1.25 increased +12.6% ▪ C
Slide 16: ALLEGION
| i. ALLEGION