Slide 1: Fourth-Quarter 2021 Financial Results
Fourth-Quarter 2021 Financial Results February 15, 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: Business Review
Business Review Market / Continued strength in market demand; leading indicators across all market Demand segments remain positive (specifications, ABI, Dodge, retail POS, etc.) Good progress on product redesign and alternative sourcing; revenue Supply Chain / constrained in the near term; electroni
Slide 5: Fourth-Quarter 2021 Financial Summary
Fourth-Quarter 2021 Financial Summary Revenue1 Adjusted OI Adjusted YTD ACF1 $Millions Margin1 EPS1 $Millions -2.5% -610 bps -25.5% Flat $727.3 22.5% $709.2 $1.49 $443.2 $443.2 16.4% $1.11 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 ▪ Organic revenue decline of 1.4% ▪ Margin decline driven by co
Slide 6: Fourth-Quarter 2021 Allegion EPS Performance
Fourth-Quarter 2021 Allegion EPS Performance Price $0.22 Infl. / Prod. ($0.45) Vol. / Mix ($0.18) * Non-cash gain on investment and debt refinancing costs 6 Fourth-Quarter 2021 Results See press release for non-GAAP reconciliations
Slide 7: Fourth-Quarter 2021 Revenue Results
Fourth-Quarter 2021 Revenue Results $800.0 32.0% $750.0 27.0% +23.8% $700.0 22.0% Q4'21 Q4'21 FY'21 FY'21 $650.0 1 1 17.0% Reported Organic Reported Organic $600.0 Growth Growth Growth Growth 12.0% $550.0 Allegion 7.0% Americas -4.2% -4.3% +2.8% +2.4% $500.0 +0.5% Allegion International +1.7% +5.8%
Slide 8: Fourth-Quarter 2021 Allegion Americas Results
Fourth-Quarter 2021 Allegion Americas Results Revenue1 Adjusted Operating Income1 $Millions $Millions -4.2% -29.0% $521.2 $148.5 $499.5 $105.5 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 Revenue Performance Adj OP Margin 28.5% 21.1% ▪ Organic revenue decline of 4.3% Adj EBITDA % 30.2% 22.9% ▪ Sequential
Slide 9: Fourth-Quarter 2021 Allegion International Results
Fourth-Quarter 2021 Allegion International Results Revenue1 Adjusted Operating Income1 $Millions $Millions +1.7% -11.2% $33.1 $206.1 $209.7 $29.4 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Adj OP Margin 16.1% 14.0% Q4 Revenue Performance Adj EBITDA % 21.1% 19.0% ▪ Organic revenue growth of 5.8% ▪ Organic g
Slide 10: 2021 Allegion ACF / Balance Sheet
2021 Allegion ACF / Balance Sheet Available Cash Flow1 Working Capital2 and Cash Conversion Cycle (CCC)3 Net Leverage $Millions $Millions $443.2 $443.2 Working Capital % of Cash Conversion Cycle Net Debt / EBITDA Ratio Revenue 64.6 61.4 1.7 6.7% 1.5 4.6% Full Year Full Year 2020 2021 2020 2021 2020
Slide 11: 2022 Actions / Expectations
2022 Actions / Expectations ➢ Executing price recovery ▪ Across the globe, all product categories ▪ Pricing actions expected to exceed inflation for FY with sequential improvement throughout 2022 ➢ Supply chain improvement ▪ Redesign work and alternative sourcing expected to be complete by the end o
Slide 12: Full-Year 2022 Outlook
Full-Year 2022 Outlook 2022 Outlook EPS Reconciliation Allegion Americas Allegion International 2021 Reported EPS $5.34 Reported & Organic1 Reported: 8.5% to 10% Reported: -1% to 1% Adjustments ² ($0.15) Revenue Organic: 8.5% to 10% Organic: 3% to 5% Outlook 2021 Adjusted EPS $5.19 Total Company – R
Slide 13: Positive Outlook for 2022
Positive Outlook for 2022 ➢ Market demand remains strong ▪ Estimating 7% to 8.5% organic growth in 2022 ▪ Constrained by electronic chip allocations ➢ Record backlog supports growth throughout 2022 and into 2023 ➢ Supply chain disruptions expected to improve ➢ Pricing expected to exceed inflation fo
Slide 14: Succession Supports Business Growth
Succession Supports Business Growth Incoming officers know our business; intentional development steps prepared them well Announcements Mike Wagnes - SVP & Chief Financial Officer Current VP & general manager, Commercial Americas SVP & Chief Financial Officer Former roles included treasurer, investo
Slide 15: Appendix
wet ALLEGION’ PIONEERING SAFETY
Slide 16: Full-Year 2021 Financial Summary
Full-Year 2021 Financial Summary Revenue1 Adjusted OI Adjusted YTD ACF1 $Millions Margin1 EPS1 $Millions +5.4% -220 bps +1.6% Flat $2,867.4 $5.19 $443.2 $443.2 21.0% $2,719.9 18.8% $5.11 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 ▪ Organic revenue growth of 4.5% ▪ Margin decline driven by infla
Slide 17: Full-Year 2021 Allegion EPS Performance
Full-Year 2021 Allegion EPS Performance 17 Fourth-Quarter 2021 Results See press release for non-GAAP reconciliations * Gain on the sale of an equity method investment, non-cash revaluation gain and debt refinancing costs
Slide 18: 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