Allegion Plc · NYSE:ALLE
Allegion — Q1 2018 Earnings Presentation
15 slides from Allegion's earnings presentation, Apr 26, 2018
Slide 1: Allegion First-Quarter 2018 Results
Allegion First-Quarter 2018 Results April 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: First-Quarter Financial Highlights
First-Quarter Financial Highlights ▪ Revenue of $613.1 million increased +11.7%, +3.3% on an organic basis1 ▪ Americas organic revenue growth +2.7% ▪ EMEIA organic revenue growth +5.9% ▪ Asia-Pacific organic revenue growth +0.2% ▪ Adjusted2 operating income of $104.2 million increased 2.8%; adjusted
Slide 5: Award-Winning Von Duprin RM/RU School Solution
Award-Winning Von Duprin RM/RU School Solution ▪ Launched February 2018 as retrofit solution to provide increased perimeter security for K-12 schools ▪ Won prestigious “Judges Choice” award from Security Industry Association at ISC West 2018 ▪ Enables centralized, remote daily lockup or emergency lo
Slide 6: Allegion Revenue Results
First-Quarter 2018 Allegion Revenue Results Q1 Q1 Q1-18 Reported Organic 1 Growth Growth Price 1.3% Americas 7.7% 2.7% Volume 2.0% EMEIA 26.9% 5.9% Organic 3.3% Asia Pacific 3.9% 0.2% Acquisition 4.7% Currency 3.7% Total 11.7% Total Allegion 11.7% 3.3% Double-Digit, Top-line Growth with Contribution
Slide 7: Allegion Results
First-Quarter 2018 Allegion Results Revenue Adjusted Operating Income ($millions) ($millions) Q1 Revenue Performance Q1 Adjusted Operating Margin -150bps ▪ Total revenue growth +11.7%; Organic growth ▪ Inflation in excess of price and productivity, +3.3% primarily in EMEIA and Asia Pacific ▪ Strong
Slide 8: Allegion EPS Performance
First-Quarter 2018 Allegion EPS Performance Q1 8 | First-Quarter 2018 Results
Slide 9: Americas Results
First-Quarter 2018 Americas Results Revenue Adjusted Operating Income ($millions) ($millions) Q1 Revenue Performance Q1 Adjusted Operating Margin -90bps ▪ Total revenue growth +7.7%; Organic growth +2.7% ▪ Price and productivity in excess of inflation, driving +30 bps ▪ High-teens growth in electrom
Slide 10: EMEIA Results
First-Quarter 2018 EMEIA Results Revenue Adjusted Operating Income ($millions) ($millions) Q1 Revenue Performance Q1 Adjusted Operating Margin -80bps ▪ Total revenue growth +26.9%; Organic growth ▪ Inflationary pressures exceeded price and +5.9% productivity ▪ Strong organic growth across most busin
Slide 11: Asia-Pacific Results
First-Quarter 2018 Asia-Pacific Results Revenue Adjusted Operating Income ($millions) ($millions) Q1 Revenue Performance Q1 Adjusted Operating Margin -680bps ▪ Total revenue growth +3.9%; Organic growth +0.2% ▪ Unfavorable product and geographic mix ▪ Flat organic growth driven by project timing ▪ I
Slide 12: Allegion ACF
First-Quarter 2018 Allegion ACF Available Cash Flow1 ($millions) ▪ Increase in ACF is due to Q1 2017 $50 million discretionary pension funding and incremental earnings, partially offset by higher cash taxes and increased working capital Working Capital2 & Cash Conversion Cycle (CCC)3 Affirming Full-
Slide 13: Full-Year 2018 Outlook
Full-Year 2018 Outlook ▪ Affirming Annual Outlook ▪ Total revenue growth at +10.5% to +11.5% ▪ Organic revenue growth of +4% to +5% ▪ Reported EPS of $4.20 to $4.35 ▪ Adjusted EPS of $4.35 to $4.50, representing growth of ~10% to 14% ▪ Available cash flow of $380 to $400 million ▪ Full-year tax rate
Slide 14: Summary
Summary ▪ Q1 revenue increased $64.3 million, +11.7% vs. prior year ▪ Organic revenue growth +3.3% ▪ Acquisitions contributing $25.8 million ▪ Q1 2018 adjusted operating margins down 150 bps, primarily driven by inflationary pressures ▪ Adjusted EPS of $0.80 increased 9.6% ▪ Affirming consolidated f
Slide 15: ALLEGION
| i. ALLEGION