安朗杰 (ALLE) 2023 Q3 法說會逐字稿

Good morning, and welcome to the Allegion Third Quarter 2023 Earnings Call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Allegion 2023 年第三季財報電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Jobi Coyle, Director of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係總監喬比·科伊爾 (Jobi Coyle)。請繼續。

Thank you, Drew. Good morning, everyone. Thank you for joining us for Allegion's Third Quarter 2023 Earnings Call. With me today are John Stone, President and Chief Executive Officer; and Mike Wagnes, Senior Vice President and Chief Financial Officer of Allegion.

謝謝你，德魯。大家，早安。感謝您參加 Allegion 2023 年第三季財報電話會議。今天與我在一起的有總裁兼執行長約翰‧史東 (John Stone)；和 Allegion 資深副總裁兼財務長 Mike Wagnes。

Our earnings release, which was issued earlier this morning, and the presentation, which we will refer to in today's call, are available on our website at investor.allegion.com. This call will be recorded and archived on our website.

我們今天早上早些時候發布的收益報告以及我們將在今天的電話會議中提到的簡報可在我們的網站 Investor.allegion.com 上取得。此通話將被記錄並存檔在我們的網站上。

Please go to Slide #2. Statements made in today's call that are not historical facts are considered forward-looking statements and are made pursuant to the safe harbor provisions of federal securities law. Please see our most recent SEC filings for a description of some of the factors that may cause actual results to differ materially from our projections. The company assumes no obligation to update these forward-looking statements.

請轉到投影片#2。今天的電話會議中所做的非歷史事實的陳述被視為前瞻性陳述，並且是根據聯邦證券法的安全港條款做出的。請參閱我們最近向 SEC 提交的文件，以了解可能導致實際結果與我們的預測有重大差異的一些因素的描述。該公司不承擔更新這些前瞻性陳述的義務。

Today's presentation and commentary include non-GAAP financial measures. Please refer to the reconciliation in the financial tables of our press release for further details.

今天的演示和評論包括非公認會計準則財務指標。如需了解更多詳情，請參閱我們新聞稿中財務表格中的調整表。

Please go to Slide 3, and I'll turn the call over to John.

請前往投影片 3，我會將電話轉給約翰。

Thanks, Jobi, and good morning, everyone. Thanks for joining us today. This current quarter was all about outstanding operational execution from the entire Allegion team, and I'm pleased with our performance.

謝謝喬比，大家早安。感謝您今天加入我們。本季整個 Allegion 團隊出色的營運執行力，我對我們的表現感到滿意。

Electronics demand remains strong with, in our opinion, a long runway for further adoption. In the quarter, Allegion delivered mid-teens organic growth in electronics and software solutions globally, led by our Americas nonresidential business, which had another robust quarter. We already have the highest margins in our industry, and we're driving additional expansion at the gross and operating margin levels despite not having some of the mechanical volume tailwinds from a year ago.

我們認為，電子產品的需求仍然強勁，進一步採用還有很長的路要走。本季度，Allegion 在全球電子和軟體解決方案領域實現了 15% 左右的有機成長，其中美洲非住宅業務帶動了該業務的強勁成長。我們已經擁有業界最高的利潤率，儘管沒有像一年前那樣出現一些機械銷售的順風車，但我們正在推動毛利率和營業利潤率的進一步擴張。

Our balance sheet is getting stronger. We delevered from the Access Technologies acquisition quickly and are now building capital to deploy for growth. Bottom line, Allegion is poised for a record year in total revenue, adjusted operating income and adjusted earnings per share. As a result, we're raising our guidance for full year adjusted EPS.

我們的資產負債表正在變得更加強勁。我們迅速擺脫了對 Access Technologies 的收購，現在正在累積資本以部署成長。總而言之，Allegion 的總收入、調整後營業收入和調整後每股盈餘預計將創下歷史新高。因此，我們提高了全年調整後每股收益的指引。

Please go to Slide 4. So Allegion's vision of enabling seamless access and a safer world remains core to our company culture, performance and results. Securing people where they live, learn and work has never been more important. We are a pure-play provider of security and access solutions. We have a great legacy of the strongest brands and the highest margins.

請前往投影片 4。因此，Allegion 實現無縫存取和打造更安全世界的願景仍然是我們公司文化、績效和成果的核心。確保人們生活、學習和工作的安全從未如此重要。我們是一家純粹的安全和存取解決方案提供者。我們擁有最強大的品牌和最高的利潤的偉大遺產。

We operate with excellence and are accelerating our year-over-year productivity with normalized lead times while still managing the massive SKU complexity that we manage in a made-to-order environment. This makes Allegion a partner of choice, and we're leveraging that unique position to promote the adoption of open ecosystems that maximize our addressable market.

我們以卓越的營運方式，透過標準化的交貨時間加快了我們逐年的生產力，同時仍然管理著我們在按訂單環境中管理的大量 SKU 複雜性。這使得 Allegion 成為首選合作夥伴，我們正在利用這一獨特地位來促進開放生態系統的採用，從而最大限度地擴大我們的目標市場。

We're also delivering new value in access, continuing our drive to wrap software and services around our hardware solutions. This is the critical unlock of additional value for our end-user customers for Allegion's growth and for long-term shareholder return.

我們還在訪問方面提供新的價值，繼續努力將軟體和服務圍繞我們的硬體解決方案進行包裝。這是為我們的最終用戶客戶釋放附加價值、促進 Allegion 發展和長期股東回報的關鍵。

A great proof point of how our company is living this vision and strategy is the Allegion Ventures announcement we made yesterday. Allegion Ventures has made a strategic investment in Ambient.ai whose cutting-edge AI platform utilizes innovative technology to enable seamless access and a safer world. This is the largest investment in Allegion Ventures' history, and it reflects the tremendous potential we see in Ambient and Allegion's collaboration to deliver new value and access.

我們昨天發布的 Allegion Ventures 聲明是我們公司如何實現這一願景和策略的一個很好的證明。 Allegion Ventures 對 Ambient.ai 進行了策略性投資，該公司的尖端人工智慧平台利用創新技術來實現無縫存取和更安全的世界。這是 Allegion Ventures 歷史上最大的投資，它反映了我們在 Ambient 和 Allegion 的合作中看到的巨大潛力，以提供新的價值和機會。

Please go to Slide 5. I'd like to turn to our capital allocation priorities. When I joined Allegion, we had just announced the acquisition of Access Technologies. And over the last year, I feel we've done a good job in quickly delevering back to pre-acquisition levels while still investing in our business and returning cash to our shareholders.

請前往投影片 5。我想談談我們的資本配置優先事項。當我加入 Allegion 時，我們剛剛宣布收購 Access Technologies。在過去的一年裡，我覺得我們在快速去槓桿化回到收購前的水平方面做得很好，同時仍然投資於我們的業務並向股東返還現金。

Allegion is an investment-grade company, and we expect to remain an investment-grade company. This is critically important to us. We will continue investing for above-market organic growth, prioritizing projects and solutions that drive seamless access and make the world safer. We're a dividend-paying stock, and you can expect our dividends to grow commensurate with earnings over the long term.

Allegion 是一家投資級公司，我們預計仍將是一家投資級公司。這對我們來說至關重要。我們將繼續投資於高於市場水平的有機成長，優先考慮推動無縫接入並使世界變得更安全的項目和解決方案。我們是一檔支付股息的股票，您可以預期我們的股息將隨著長期收益的成長而成長。

We will also drive growth through acquisitions, considering complementary portfolios like you saw with the Access Technologies business as well as Software-as-a-Service related to seamless access like you saw with plano. High-margin recurring revenue businesses and bolt-on acquisitions that fill portfolio gaps in the hardware space will remain priorities. And while we may increase our debt for the right acquisitions, we've demonstrated the ability to quickly delever.

我們還將透過收購來推動成長，考慮互補的產品組合，就像您在接入技術業務中看到的那樣，以及與無縫存取相關的軟體即服務，就像您在Plano 中看到的那樣。高利潤的經常性收入業務和填補硬體領域投資組合空白的補強收購仍將是優先事項。儘管我們可能會為了正確的收購而增加債務，但我們已經證明了快速去槓桿化的能力。

Lastly, with regards to share repurchases, at a minimum, we will continue to offset incentive compensation, and we will make additional share repurchases as appropriate. Mike will now walk you through third quarter financial results, and I'll be back to discuss our full year 2023 outlook.

最後，關於股票回購，至少我們會繼續抵銷激勵薪酬，並視情況進行額外的股票回購。麥克現在將向您介紹第三季的財務業績，我將回來討論我們的 2023 年全年展望。

Thanks, John, and good morning, everyone. Thank you for joining today's call.

謝謝約翰，大家早安。感謝您參加今天的電話會議。

Please go to Slide #6. As John shared, Allegion continued to execute at a high level. We delivered another quarter of solid performance with strong electronics growth, sustained margin expansion and healthy cash flows.

請轉到投影片 #6。正如 John 所言，Allegion 繼續保持高水準執行。我們憑藉強勁的電子產品成長、持續的利潤成長和健康的現金流，實現了另一個季度的穩健業績。

Revenue for the third quarter was $917.9 million, an increase of 0.5% compared to 2022. We continue to see favorable price realization along with strength in electronics and Access Technologies. However, ongoing pressure on our residential business, paired with a challenging prior year comparable, resulted in organic revenue decline of 0.6%.

第三季營收為 9.179 億美元，較 2022 年成長 0.5%。我們繼續看到有利的價格實現以及電子和接入技術領域的實力。然而，我們住宅業務的持續壓力，加上去年的可比較挑戰，導致有機收入下降 0.6%。

Adjusted operating margin and adjusted EBITDA margin in the third quarter both increased by 110 basis points. Price and productivity in excess of inflation and investment, along with strong operational execution, more than offset the volume decline impact. On a year-to-date basis, we have achieved the highest adjusted operating margin in our history.

第三季調整後營業利潤率和調整後 EBITDA 利潤率均成長 110 個基點。價格和生產力超過通貨膨脹和投資，加上強勁的營運執行力，足以抵消銷售下降的影響。今年迄今為止，我們實現了史上最高的調整後營業利潤率。

I'm pleased with the margin performance over the last 18 months as we have now recaptured the margin loss during our supply chain disruptions. Our operating model and strong execution have positioned us well for future margin expansion.

我對過去 18 個月的利潤表現感到滿意，因為我們現在已經恢復了供應鏈中斷期間的利潤損失。我們的營運模式和強大的執行力為我們未來的利潤擴張奠定了良好的基礎。

Adjusted earnings per share of $1.94 increased $0.21 or approximately 12% versus the prior year. Operational performance drove nearly $0.10 per share with the remaining coming from tax driven by timing of discrete items versus the prior year. We expect our full year adjusted effective tax rate to be approximately 15%. You can find further details of our earnings per share performance in the appendix.

調整後每股收益為 1.94 美元，與前一年相比增加了 0.21 美元，約 12%。與前一年相比，營運績效推動每股近 0.10 美元，其餘部分來自離散專案時間表驅動的稅收。我們預計全年調整後有效稅率約為 15%。您可以在附錄中找到有關我們每股收益表現的更多詳細資訊。

Year-to-date available cash flow was $320.4 million, an increase of approximately $95 million versus last year, driven by higher earnings. I will provide more details on our cash flow and balance sheet a little later in the presentation.

受收益增加的推動，年初至今的可用現金流為 3.204 億美元，比去年增加了約 9,500 萬美元。我將在稍後的演示中提供有關我們的現金流量和資產負債表的更多詳細資訊。

Please go to Slide #7. This slide provides an overview of our quarterly and year-to-date revenue. I will review our enterprise results here before turning to our respective regions. As I just mentioned, we have reported growth of 0.5% with a decline in organic revenue of 0.6% in the quarter as price realization offset pressure on mechanical volumes.

請轉到投影片#7。這張幻燈片概述了我們的季度和年初至今的收入。在轉向我們各自的地區之前，我將在這裡回顧一下我們的企業表現。正如我剛才提到的，我們報告本季成長 0.5%，但有機收入下降 0.6%，因為價格實現抵消了機械銷售的壓力。

As you see on the top of the slide, Q3 is comping against our prior year quarter with organic growth of more than 18%. If you recall, that is when our supply chain improvement efforts allowed us to start working through backlogs and past-due customer orders and represented the highest organic growth in our company's history.

正如您在幻燈片頂部看到的那樣，第三季度與去年同期相比，有機成長超過 18%。如果您還記得的話，那時我們的供應鏈改進工作使我們能夠開始處理積壓訂單和逾期客戶訂單，並代表了我們公司歷史上最高的有機成長。

Currency drove some favorability in the quarter, bringing total reported growth to 5/10. On a year-to-date basis, organic revenue was 6.1% overall with Americas at nearly 9%, driven by strength in our nonresidential business. Our international business is down about 3% year-to-date.

貨幣在本季度帶來了一定的利好，使報告的總成長率達到 5/10。今年迄今為止，在我們非住宅業務實力的推動下，整體有機收入為 6.1%，其中美洲接近 9%。今年迄今為止，我們的國際業務下降了約 3%。

Please go to Slide #8. Our Americas segment continues to deliver strong operating results in the third quarter, expanding margins despite lower volumes. Revenues of $740.9 million was down slightly on a reported basis and flat organically as favorable pricing was offset by reduced volumes.

請轉到幻燈片#8。我們的美洲部門在第三季繼續取得強勁的營運業績，儘管銷量下降，但利潤率仍在擴大。根據報告，收入為 7.409 億美元，略有下降，但有機持平，因為有利的定價被銷售減少所抵消。

Let me disaggregate the components further. The Americas nonresidential business was up low single digits against the prior year comp, which grew approximately 30%, driven by backlog reductions I just mentioned. On a year-to-date basis, nonresidential business has grown double digits. Our Americas residential business is down low teens in the quarter as we continue to see weakness in the residential market as higher interest rates continue to impact new and existing home sales.

讓我進一步分解這些組件。美洲非住宅業務較去年同期成長了約 30%，這主要得益於我剛才提到的積壓訂單減少。今年迄今，非住宅業務實現了兩位數成長。我們的美洲住宅業務在本季下降了兩位數，因為我們繼續看到住宅市場疲軟，因為利率上升繼續影響新房和現有房屋銷售。

Our Access Technologies business delivered organic growth of mid-teens, representing another strong quarter of top line growth and demonstrating the stability that this business provides us. Demand for our electronic solutions remained strong in the Americas. We delivered high-teens organic growth in electronics in the quarter, and we continue to see a long runway for further adoption as electronics remains a key growth driver for the long term.

我們的接入技術業務實現了十幾歲左右的有機成長，代表著收入成長的另一個強勁季度，並證明了該業務為我們提供的穩定性。美洲對我們電子解決方案的需求依然強勁。我們在本季度實現了電子產品的有機成長，我們繼續看到進一步採用的漫長道路，因為電子產品仍然是長期的關鍵成長動力。

As we discussed during our second quarter call, mechanical volumes were expected to be a little soft in the third quarter as customers adjusted to our reduced lead times. We feel the channel has worked through this adjustment, and we are back to a more normal book and ship business.

正如我們在第二季電話會議中討論的那樣，隨著客戶適應我們縮短的交貨時間，預計第三季的機械銷售將略有疲軟。我們認為該管道已經完成了這次調整，我們已經恢復到更正常的預訂和運輸業務。

Our Americas adjusted operating income of $210.6 million increased 5% versus the prior year period, while adjusted operating margin and adjusted EBITDA margin for the quarter were up 140 and 150 basis points, respectively. Pricing and productivity exceeded inflation and investments driving substantial margin expansion, demonstrating the resiliency of our Americas business model.

美洲地區調整後營業收入為 2.106 億美元，較上年同期成長 5%，本季調整後營業利潤率和調整後 EBITDA 利潤率分別成長 140 和 150 個基點。定價和生產力超過了通貨膨脹和投資，推動了利潤率的大幅成長，證明了我們美洲業務模式的彈性。

Please go to Slide #9. Our International segment executed well in a challenging macroeconomic environment. Revenues of $177 million was up 3% on a reported basis and down 2.8% organically. Price realization was more than offset by lower volumes, primarily associated with our Global Portable Securities business and our China business, which are operating in challenging markets. We continue to see strength in our electronics and software solutions, which grew low double digits organically in the quarter. In addition, currency was a tailwind this quarter, positively impacting reported revenues by 5.2%.

請轉到投影片 #9。我們的國際部門在充滿挑戰的宏觀經濟環境中表現良好。報告營收為 1.77 億美元，成長 3%，有機下降 2.8%。價格實現被銷售下降所抵消，銷售下降主要與我們的全球便攜式證券業務和中國業務有關，這些業務在充滿挑戰的市場中運作。我們繼續看到我們的電子和軟體解決方案的優勢，該解決方案在本季度有機增長了兩位數。此外，本季貨幣匯率也起到了推動作用，對報告收入產生了 5.2% 的正面影響。

International adjusted operating income of $23.7 million increased over 18% versus the prior year period. We also saw improvements in adjusted operating margin and adjusted EBITDA margins of 180 and 190 basis points, respectively. This substantial margin expansion, despite reduced volumes, highlights the healthier portfolio within our International segment.

國際調整後營業收入為 2,370 萬美元，較上年同期成長 18% 以上。我們也看到調整後營業利潤率和調整後 EBITDA 利潤率分別提高了 180 和 190 個基點。儘管銷量減少，但利潤率的大幅成長凸顯了我們國際業務中更健康的投資組合。

Please go to Slide #10. As I mentioned earlier, year-to-date available cash flow came in at $320.4 million, up nearly $95 million versus the prior year. This increase is driven by higher earnings, partially offset by higher capital expenditures related to our new facility in Mexico, which begins production later this quarter.

請轉到投影片#10。正如我之前提到的，年初至今的可用現金流為 3.204 億美元，比前一年增加了近 9,500 萬美元。這一增長是由收入增加推動的，但部分被與我們在墨西哥的新工廠相關的資本支出增加所抵消，該工廠於本季度晚些時候開始生產。

Working capital as a percent of revenue increased versus the prior year. This was primarily driven by timing of revenue and associated receivables within the quarter as well as timing of payments to suppliers in the prior year. Working capital and inventory management remain a priority for our company as we efficiently turn earnings to cash.

營運資本佔收入的百分比較上一年增加。這主要是由本季度收入和相關應收帳款的時間安排以及上一年向供應商付款的時間安排所推動的。隨著我們有效地將收益轉化為現金，營運資金和庫存管理仍然是我們公司的首要任務。

Our net debt to adjusted EBITDA is down to 2x as we continue to successfully delever following the Access Technologies acquisition. We repaid the final $39 million on our revolving credit facility in the quarter, completing our repayments of short-term borrowings associated with that acquisition.

隨著我們在收購 Access Technologies 後繼續成功地去槓桿化，我們的淨債務與調整後 EBITDA 的比例已降至 2 倍。我們在本季度償還了最後 3,900 萬美元的循環信貸額度，完成了與該收購相關的短期借款的償還。

We are now back to pre-acquisition leverage levels, which demonstrates our proven track record of effectively deploying capital while maintaining an investment-grade credit rating. Our business continues to generate strong cash flow, and our balance sheet continues to be in a healthy position.

我們現在回到了收購前的槓桿水平，這證明了我們在有效部署資本的同時保持投資級信用評級的良好記錄。我們的業務繼續產生強勁的現金流，我們的資產負債表繼續保持健康的狀態。

I'll now hand the call back over to John for an update on our full year 2023 outlook.

我現在將把電話轉給 John，以了解我們 2023 年全年展望的最新情況。

Thanks, Mike.

謝謝，麥克。

Please go to Slide 11. As I mentioned earlier, our company is on track for record full year revenue, adjusted operating income and adjusted EPS in 2023. We're raising our full year outlook on adjusted EPS and affirming our full year outlook on revenue and available cash flow.

請轉到幻燈片11。正如我之前提到的，我們公司預計在2023 年創下創紀錄的全年收入、調整後營業收入和調整後每股收益。我們正在上調調整後每股收益的全年預期，並確認全年收入預期和可用現金流。

We continue to expect the Americas segment to be 15% to 16% for total growth, 7.5% to 8.5% organically, led by our nonresidential business, which is still expected to grow high single to low double digits organically. Residential business is expected to be down slightly as markets remain challenged.

我們繼續預計美洲業務的總成長將達到 15% 至 16%，有機成長將達到 7.5% 至 8.5%，其中非住宅業務的成長預計仍將實現高個位數到低兩位數的有機成長。由於市場仍面臨挑戰，住宅業務預計將略有下降。

For International, we continue to expect revenue to be down 1% to flat in total and down 1% to 2% organically. All in for the company, our outlook continues to reflect total revenue growth between 11.5% and 12.5% with organic revenue growth between 5.5% and 6.5%.

對於國際業務，我們繼續預期總收入將下降 1% 至持平，有機收入將下降 1% 至 2%。總而言之，我們的前景繼續反映公司總收入成長在 11.5% 至 12.5% 之間，有機收入成長在 5.5% 至 6.5% 之間。

Based on our strong operational performance in the third quarter, we're increasing our adjusted EPS outlook to the range of $6.80 to $6.90, which is approximately 13.5% to 15% growth over the prior year period. Lastly, we still expect our outlook on available cash flow to be in the range of $500 million to $520 million.

基於我們第三季強勁的營運業績，我們將調整後每股盈餘預期上調至 6.80 美元至 6.90 美元，比去年同期成長約 13.5% 至 15%。最後，我們仍然預期可用現金流的前景在 5 億至 5.2 億美元之間。

I'm very proud of the work of the entire Allegion team and our distribution partners over the course of this year and the record results we're on track to achieve. Looking forward, we'll provide our full 2024 outlook to you during our fourth quarter call, as we normally do. However, given the uncertainty in the market moving into next year, we wanted to give you some insights into our view of the market dynamics today.

我對整個 Allegion 團隊和我們的分銷合作夥伴在今年的工作以及我們有望實現的創紀錄的成果感到非常自豪。展望未來，我們將像往常一樣在第四季度電話會議上向您提供完整的 2024 年展望。然而，考慮到明年市場的不確定性，我們希望向您提供一些我們對當今市場動態的看法。

First, we expect growth in electronics adoption to continue, driven by the convenience and added security that digital identities and mobile credentials leveraging smartphone wallets provide to our end user customers. A shift from mechanical systems to electronic access control systems with connected hardware provides efficiencies and operating cost savings for buildings and campuses, and recent channel checks and recent end-user visits in the institutional segments in education and health care reinforce this trend.

首先，我們預計電子產品的採用將繼續成長，這得益於利用智慧型手機錢包的數位身分和行動憑證為我們的最終用戶客戶提供的便利性和更高的安全性。從機械系統到具有連接硬體的電子門禁系統的轉變為建築物和校園提高了效率並節省了運營成本，最近在教育和醫療保健機構領域進行的渠道檢查和最終用戶訪問強化了這一趨勢。

And while small today, our software solutions portfolio is growing, and we look to accelerate this growth into 2024 and beyond. In addition, while the most recent ABI headline dipped, the institutional segment has been very resilient over the last 12 months, and 5 of the last 6 months still reading above 50.

雖然目前我們的軟體解決方案組合規模很小，但它正在不斷成長，我們希望在 2024 年及以後加速這種成長。此外，雖然最近的 ABI 標題有所下降，但機構部門在過去 12 個月中一直非常有彈性，並且過去 6 個月中有 5 個月的讀數仍高於 50。

Allegion's context is important here. You'll recall that we're a late-cycle business and also rather heavily weighted towards the institutional segment. We have an auto door business with strong backlogs and a blue-chip customer base and a service business that continues to grow. Our channel is in good shape on inventory, and our lead times across the portfolio are now normalized. Our supply chain has improved to the point where we can regain market share in the aftermarket space.

Allegion 的背景在這裡很重要。您可能還記得，我們​​是一家週期較晚的企業，對機構業務的重視程度也相當高。我們的自動門業務擁有大量積壓訂單和藍籌客戶群，以及持續成長的服務業務。我們的通路庫存狀況良好，整個產品組合的交貨時間現已正常化。我們的供應鏈已經改善，我們可以重新獲得售後市場的市場份額。

Expected headwinds are well known at this point. Commercial office in major metro areas is indeed soft. It's been soft for several months now. However, that part of our business is only a low double digit percent of our overall Americas portfolio. Weakness in residential and certain international markets is expected to continue, particularly for mechanical products, which we've highlighted for you throughout this year.

目前，預期的阻力是眾所周知的。各大都會區的商業辦公室確實比較軟。已經好幾個月了，已經軟了。然而，我們這部分的業務僅占我們整個美洲業務組合的兩位數百分比。預計住宅和某些國際市場將繼續疲軟，尤其是機械產品，我們今年一直向您強調這一點。

We expect productivity and recent cost actions that we have taken to help drive margin expansion into next year. And before we go to Q&A, I'd like to reiterate what I said at the beginning of the call. Allegion is in a good industry and we're well positioned, thanks to the strong execution by our team. We've navigated industry cycles very well in the past. And with the improvements we've made to our portfolio and operations, we feel confident in our ability to succeed and drive continued organic growth and margin expansion.

我們預計生產力和最近採取的成本行動將有助於推動明年的利潤率擴張。在我們進行問答之前，我想重申我在電話會議開始時所說的話。 Allegion 處於一個良好的行業，並且由於我們團隊的強大執行力，我們處於有利位置。過去我們很好地駕馭了產業週期。隨著我們對投資組合和營運所做的改進，我們對自己取得成功並推動持續有機成長和利潤擴張的能力充滿信心。

With that, let's turn to Q&A.

接下來，我們進入問答環節。

(Operator Instructions) The first question comes from Joe O'Dea with Wells Fargo.

（操作員說明）第一個問題來自富國銀行的 Joe O'Dea。

So John, maybe on that last point, and I'm not sure you're sort of willing to maybe elaborate a little bit more, but just the '24 kind of considerations. I mean it seems like if institutional channel checks are constructive, market share gain potential in aftermarket, understandable headwinds on commercial office and resi, but then productivity and cost actions as well, I mean it seems like it's setting up for margin expansion. Is it also today setting up for top line growth with the mix of those factors?

所以約翰，也許在最後一點上，我不確定你是否願意詳細說明一下，但只是 24 小時的考慮。我的意思是，如果機構通路檢查具有建設性，售後市場的市場份額獲得潛力，商業辦公室和房地產的逆風是可以理解的，但生產力和成本行動也是如此，我的意思是，它似乎正在為利潤擴張做好準備。今天是否也在這些因素的綜合作用下為營收成長做好了準備？

Yes, Joe, I appreciate the question. I'd say, again, the short answer, yes, we see organic growth in the future. I'd just keep bringing you back to Allegion as a late-cycle business. We're heavily weighted towards institutional. If you look at Dodge starts, if you look at ABI, the institutional segment has been very resilient the last 12 months or even longer.

是的，喬，我很欣賞這個問題。我想說，簡短的回答是，是的，我們看到未來的有機成長。我只是想繼續讓你回到 Allegion 作為一個後期業務。我們非常重視機構。如果你看看 Dodge Starts，如果你看看 ABI，機構部門在過去 12 個月甚至更長的時間內一直非常有彈性。

And so, yes, we feel pretty good about that, both on driving organic growth as well as, just like you mentioned, on the margin expansion side. So margin expansion might not be as robust as you've seen these last quarters, but we still feel well positioned to continue to drive margin expansion productivity, and as you heard and as you called out, the cost actions that we've taken here recently, still well positioned.

因此，是的，我們對此感覺非常好，無論是在推動有機成長方面，還是在利潤擴張方面，就像您提到的那樣。因此，利潤率擴張可能不像您在過去幾季中看到的那樣強勁，但我們仍然感覺自己處於有利地位，可以繼續推動利潤率擴張生產力，正如您所聽到的和您所呼籲的那樣，我們在這裡採取的成本行動最近，依然處於有利位置。

All right, I appreciate that. And then also just International and maybe level setting on your views on where things stand within that cycle, where we've got, I think, now 6 quarters of volume declines. It's been, I think, some time that a lot of that has been on portable security. I think electronics has been holding up quite better. But just where you think you are in that cycle? How close you are maybe to a bottom within the international trends?

好吧，我很感激。然後還有國際層面的，也許是你對這個週期內情況的看法的水平設置，我認為，我們現在已經有 6 個季度的銷量下降。我認為，已經有一段時間了，其中許多都是關於便攜式安全性的。我認為電子產品一直表現得更好。但你認為自己在這個週期中處於什麼位置？您距離國際趨勢的底部有多近？

Yes, that's tough to peg, Joe. Like where is the bottom? For International, our portfolio spans Europe and Asia Pacific. And certainly, I think we see continued weakness in China, even though that's a small part of our portfolio. I'd say continued weakness would not be ready to call a bottom.

是的，這很難確定，喬。例如底部在哪裡？對於國際市場，我們的產品組合涵蓋歐洲和亞太地區。當然，我認為我們看到中國持續疲軟，儘管這只是我們投資組合的一小部分。我想說，持續的疲軟還不足以宣告觸底。

On the Portable Security business, it's still a challenged market, there's no doubt about it. Time to call a bottom. We're definitely flirting with the bottom, I would say, which could provide a small bit of tailwind into next year and beyond.

就便攜式安全業務而言，毫無疑問，它仍然是一個充滿挑戰的市場。是時候呼喚底部了。我想說，我們肯定正在觸底，這可能會為明年及以後提供一點推動力。

But you called out the most important piece, and that's the continued growth around our electronics and software solutions portfolio in Europe. They've been performing extremely well. We're continuing to invest in that business, like the bolt-on acquisition of plano. That team came on board and is performing very well, integrated very well with our Interflex team. And we see a really bright future there. And in the electronics space, yes, continued growth, and we will continue to drive investments to drive that growth.

但您指出了最重要的一點，那就是我們在歐洲的電子和軟體解決方案組合的持續成長。他們的表現一直都非常好。我們將繼續投資該業務，例如補強收購普萊諾。團隊加入後表現非常出色，與我們的 Interflex 團隊融為一體。我們在那裡看到了非常光明的未來。在電子領域，是的，持續成長，我們將繼續推動投資以推動成長。

Joe, I might also add, if you think about that Global Portable, we've been calling that out all year. So it's going to be a soft 2023, all 4 quarters. So if you think about next year, it's not a big headwind -- I'm sorry, a big headwind versus the current year because you do have 4 soft quarters. So I think it's important to understand that dynamic about Global Portable.

喬，我還可以補充一點，如果你想到全球便攜式，我們一整年都在呼籲這一點。因此，2023 年將是個疲軟的 2023 年，共 4 個季度。因此，如果你考慮明年，這並不是一個很大的逆風——我很抱歉，與今年相比，這是一個很大的逆風，因為你確實有 4 個疲軟的季度。因此，我認為了解 Global Portable 的動態非常重要。

The next question comes from Julian Mitchell with Barclays.

下一個問題來自巴克萊銀行的朱利安·米切爾。

Maybe just wanted to circle back to the Americas organic sales outlook. So it looks like the fourth quarter implied is organic sales may be up mid-single digits year-on-year in Q4 and then sort of down mid-single digits sequentially. So I just wanted to sort of make sure that's roughly correct. And any color within that on non-resi versus resi dynamics. And when we look at that plus mid-single-digits entry rate into 2024 and the fact that your guidance from the Investor Day was plus mid-single digit for the Americas market, are we assuming that kind of run rate can sustain into early '24?

也許只是想回到美洲的有機銷售前景。因此，第四季度似乎意味著第四季度的有機銷售額可能會比去年同期成長中個位數，然後依次下降中個位數。所以我只是想確保這大致正確。以及非樹脂動態與樹脂動態中的任何顏色。當我們看到進入 2024 年的中個位數的進入率以及投資者日的指導是美洲市場的中個位數的事實時，我們是否假設這種運行率可以維持到早期24？

Yes, Julian, if you think about the current year, so much of the current year growth rates are driven by comps in the prior year. So if you think about Q3, we last year really started to ramp our plants up as we got rid of that excess backlog in mechanical. That continued into Q4 last year. So this year, obviously, back half does have lower growth rates than first half.

是的，朱利安，如果你考慮今年，那麼今年的成長率很大程度上是由上一年的比較所驅動的。因此，如果你想想第三季度，我們去年確實開始擴大我們的工廠，因為我們擺脫了機械方面的多餘積壓。這種情況一直持續到去年第四季。所以，很明顯，今年後半段的成長率確實低於上半年。

With respect to the 2 businesses, I think it's fair to say that nonresidential certainly is healthier or stronger than the residential end markets. So as I think about a full year, think of non-res, double digits, right? And you can do the math to back into the Q4 implied. That residential, we are going to be down slightly this year, as we put in the prepared remarks, which is we can say relatively that this year, whether it's down slightly or relatively flat all year. So you do have a dynamic where resi is a little weaker, as we've been saying, and the non-res led by institutional is hanging in there. But prior year comps do impact the year-over-year quarterly growth rates.

就這兩項業務而言，我認為可以公平地說，非住宅市場肯定比住宅終端市場更健康或更強大。因此，當我想到一整年時，會想到非資源，兩位數，對嗎？您可以透過數學計算回到隱含的第四季。就住宅而言，我們今年將略有下降，正如我們在準備好的評論中所說的那樣，我們可以相對地說，今年無論是小幅下降還是全年相對持平。因此，正如我們所說，確實有一種動態，即可再生能源有點弱，而機構主導的非再生能源則一直存在。但去年的比較確實會影響年比季成長率。

That's helpful. And it sounds like you're fairly confident that, that inventory destock process by your sort of customers and channel partners is largely done. Maybe just sort of help us understand the conviction level around that. And when you're looking at your sort of forward-looking indicators, I think you mentioned backlog down a bit. But maybe any color on sort of the spec writing for the Americas business overall. How does kind of the order patterns change? Have you seen any evidence of project pushouts, that type of thing?

這很有幫助。聽起來您相當有信心，您的客戶和通路合作夥伴的庫存去庫存流程已基本完成。也許只是幫助我們了解對此的信念程度。當您查看前瞻性指標時，我認為您提到了積壓訂單的減少。但也許是為整個美洲業務編寫的規範中的任何顏色。訂單模式如何改變？您是否看到任何項目推出之類的證據？

Okay. There's about 5 questions in there, Julian. Well done. I'd say on the channel destock, we feel pretty good there. I think our commentary in Q2 kind of indicated we didn't view this as a real long-term issue, and channel checks kind of prove that out. I don't think it's still a big headwind at this point. We've met with our 25 largest distributors in the past few weeks, and then that would confirm that.

好的。那裡大約有 5 個問題，朱利安。做得好。我想說的是，在渠道去庫存方面，我們感覺很好。我認為我們在第二季的評論表明我們不認為這是一個真正的長期問題，而通路檢查也證明了這一點。我認為目前這仍然不是一個很大的阻力。過去幾週我們會見了 25 家最大的經銷商，這將證實這一點。

So again, there's still certain metro areas that are a little bit soft. There are still suburban areas that are quite strong, quite robust aftermarket, et cetera. So overall, feel pretty good along with the comments that Mike just shared.

再說一遍，某些都會區仍然有點疲軟。仍然有一些郊區相當強大，售後市場相當強勁，等等。總的來說，根據邁克剛剛分享的評論感覺很好。

Let's see what else to mention there. I think with respect to the spec activity, yes, spec activities still remain solid, and it's still hanging in there. And so we would expect that institutional heavy business to be driven by -- that's the spec engine that we have to still remain solid as we move forward. So spec activity still remains strong for us.

讓我們看看還有什麼要提到的。我認為就規格活動而言，是的，規格活動仍然保持穩定，並且仍然存在。因此，我們預計機構重型業務將受到驅動——這就是我們在前進過程中必須保持穩定的規格引擎。因此，對我們來說，規格活動仍然強勁。

The next question comes from Joe Ritchie with Goldman Sachs.

下一個問題來自高盛的喬·里奇。

So can we maybe just following up on the mechanical business bottoming comment. So your portfolio has gone through some change, obviously, with the Access business, the electronics business growing at a faster pace. If I think about the kind of overall level of where the mechanical business is today, what's the kind of right run rate that, that should be bottoming, whether that's on a quarterly basis or an annual basis? Just any color around that would be helpful.

那麼我們是否可以只是跟進機械業務觸底評論。因此，您的投資組合顯然經歷了一些變化，隨著接入業務、電子業務的成長速度加快。如果我考慮一下當今機械業務的總體水平，那麼應該觸底的正確運行率是多少，無論是按季度還是按年度？只要周圍有任何顏色都會有幫助。

I'd share this with you, Joe. If you look at our revenue growth, starting in Q3 last year, we started shipping those past-due orders serving our customers. That continued, if you recall, Q1 this year, real large growth that we had. So you could think of that as a kind of a 3-quarter burn through that backlog type challenge and the customers adjusting to our new lead times.

我想和你分享這個，喬。如果你看看我們的營收成長，從去年第三季開始，我們開始運送那些為客戶服務的逾期訂單。如果你還記得的話，這種情況仍在繼續，今年第一季我們實現了真正的大幅成長。因此，您可以將其視為透過積壓類型挑戰和客戶來適應我們新的交貨時間的 3 個季度的消耗。

I think from that point on, we're kind of more normalized, right? We talked in Q2 about that item. So I feel that that's behind us. It's those 3 quarters where you do have that more challenging comparable on the nonresidential mechanical business we talked about.

我認為從那時起，我們就更加正常化了，對吧？我們在第二季討論過這個項目。所以我覺得這已經過去了。正是在這三個季度，我們談到的非住宅機械業務確實面臨更具挑戰性的挑戰。

Okay. Great. Appreciate that, Mike. And then maybe my follow-on, John, you talked about the balance sheet getting back into investment grade, good shape. You delevered now to 2 turns. I'm curious, there are some fairly sizable assets that are out there potentially on the security side. As you're thinking about deploying capital, how are you thinking about M&A and particularly like bolt-ons versus maybe some more transformative type deals?

好的。偉大的。很欣賞這一點，麥克。然後也許是我的繼任者約翰，您談到資產負債表恢復到投資等級，狀態良好。您現在減槓桿至 2 圈。我很好奇，在安全方面可能存在一些相當大的資產。當您考慮部署資本時，您如何看待併購，尤其是補充性交易，而不是一些更具變革性的交易？

Yes, great question, Joe. And I think the teams performed very, very well. Cash flow has improved very well this year. And we did delever quite well, and I think happy with where we're positioned. And again, as in the prepared remarks, building capital to deploy for growth.

是的，很好的問題，喬。我認為這些團隊的表現非常非常好。今年現金流有了很大改善。我們的去槓桿化做得很好，我認為我們對我們的定位感到滿意。再一次，正如準備好的演講所說，累積資本以部署成長。

And I think for us, you can look for us to be acquisitive. You can look for us to look to fill portfolio gaps with bolt-on hardware solutions like we did with Access Technologies or SaaS businesses like we did with plano. As long as things are the right strategic asset, the right leadership team, a business model, a culture that fits with Allegion and is in the sandbox of security and access solutions, you can look for us to be acquisitive. Now certainly not right to comment on any particular transaction, but we do expect to grow through acquisition and building capital to do just that.

我認為對我們來說，你可以看到我們具有收購性。您可以尋找我們，希望透過附加硬體解決方案來填補產品組合空白，就像我們對 Access Technologies 所做的那樣；或者像我們對 Plano 所做的那樣，尋找 SaaS 業務。只要是適合 Allegion 的正確策略資產、正確的領導團隊、商業模式和文化，並且處於安全和存取解決方案的沙箱中，您就可以期待我們的收購。現在當然不適合對任何特定交易發表評論，但我們確實希望透過收購和建立資本來實現這一目標。

The next question comes from Brett Linzey with Mizuho.

下一個問題來自 Mizuho 的 Brett Linzey。

Just wanted to dig in on the complexion of the marketplace and really thinking about in the softer commercial pockets versus the institutional resilience. Is there any good way to think about the locker access content per building between those 2 verticals? I think you get multiples of the wallet share in a school or a hospital versus a retail front, but any insight there would be helpful.

只是想深入了解市場的情況，並真正考慮較軟的商業口袋與機構的彈性。有沒有什麼好方法來考慮這兩個垂直方向之間每棟建築的儲物櫃訪問內容？我認為你在學校或醫院獲得的錢包份額是零售部門的數倍，但任何見解都會有所幫助。

Yes. Brett, when you think of our business, the more complex the business -- building rather, the richer the mix for us. So if you think about a higher ed school, a hospital, those are really good for us. A K-12 school, there's doors frequently and openings frequently per square foot.

是的。布雷特，當你想到我們的業務時，業務越複雜——而不是建設，我們的組合就越豐富。因此，如果你考慮一所高等教育學校、一家醫院，這些對我們來說確實有好處。一所 K-12 學校，每平方英尺都有頻繁的門和開口。

If you think about open floor plans like commercial office, there's clearly less openings on a commercial office floor plan than there is in an institutional door or a warehouse; or a warehouse, absolutely. So warehouse has been awful over the last 12 months from a starts, but we really don't have any openings in the warehouse. So when you look at our business, that institutional-heavy aspect of our portfolio gives us a richer mix and gives us more openings to address. So that's a net positive for us. John?

如果您考慮像商業辦公室這樣的開放式平面圖，那麼商業辦公室平面圖上的開口顯然比機構門或倉庫中的開口要少；或倉庫，絕對是。因此，過去 12 個月以來，倉庫從一開始就一直很糟糕，但我們的倉庫確實沒有任何空缺。因此，當你審視我們的業務時，我們的投資組合中以機構為主的方面為我們提供了更豐富的組合，並為我們提供了更多需要解決的空缺。所以這對我們來說是一個淨積極的結果。約翰？

Yes, got it. And then just shifting back over to residential, down low teens. You will be lapping your first destock comp in the fourth quarter of '23 here. Could you just characterize where you see those categories in their destocking phase? And any visibility you have on the sellout trends within some of those resi channels?

是的，明白了。然後又回到住宅區，降到十幾歲。您將在 23 年第四季在這裡完成您的第一個去庫存比較。您能否描述一下這些類別在去庫存階段的情況？您對其中一些 Resi 通路的銷售趨勢有了解嗎？

Yes. So I think resi mechanical, when we see our own results and we see some other industry participant results, it's a tough end market, let's just say. So I don't know that I necessarily attribute it just to destocking, but it's a soft end market with mortgage rates going up, house churn, if you will, or resale is certainly a bit depressed. Permits and starts, maybe if you look through a rose-colored lens, you see some green shoots of hope for the future. But I think that overall market is still depressed.

是的。所以我認為，當我們看到我們自己的結果和其他一些行業參與者的結果時，我認為這是一個艱難的終端市場，可以這麼說。所以我不知道我是否一定將其歸因於去庫存，但這是一個軟終端市場，抵押貸款利率上升，房屋流失（如果你願意的話），或者轉售肯定有點低迷。允許並開始，也許如果你透過玫瑰色的鏡片來看，你會看到一些未來希望的綠芽。但我認為整體市場仍然低迷。

When we think about our comps, I would just come back to there was a period of time in 2022 where we just couldn't ship our electronic locks even in the resi segment. And so the restocking phase was still going on until rather recently. And now you could say it's a more normal point-of-sale-driven business on the e-lock side. The mechanical side, I think it's just end market is depressed.

當我們考慮我們的比較時，我會回想起 2022 年的一段時間，即使在 Resi 領域，我們也無法發貨我們的電子鎖。因此，直到最近，補貨階段仍在進行。現在你可以說這是電子鎖方面更正常的銷售點驅動業務。機械方面，我認為只是終端市場低迷。

The next question comes from Chris Snyder with UBS.

下一個問題來自瑞銀集團的克里斯·史奈德。

I wanted to ask on the Americas business into Q4. So if we look at, and if my math is right, if you kind of look at the Q4 or the full year organic guide, it kind of pegs Q4 revenues in the Americas anywhere from flat sequentially to maybe down 4% sequentially versus Q3. And when we look at all the pre-COVID years, it seemed like Americas was typically down anywhere from 4% to 7% into Q4. So it's calling for better-than-normal seasonality. Can you just maybe talk about what's driving that? Or is it like [Apple's] technology?

我想詢問第四季的美洲業務。因此，如果我們看一下，如果我的數學是正確的，如果你看第四季度或全年有機指南，你會發現美洲第四季度的收入與第三季度相比，從持平到可能連續下降4%。當我們回顧新冠疫情爆發之前的所有年份時，美洲地區到第四季的成長率通常會下降 4% 到 7%。因此，它需要比正常情況更好的季節性。您能談談是什麼推動了這個趨勢嗎？或者它像[蘋果]的技術嗎？

No, Chris, if you remember on an organic basis in the summertime, we talked about, hey, we're burning through this channel destock. And we said it will be a little flatter this year than historically. So what you saw, we did get through that in the third quarter, which is what we expected.

不，克里斯，如果你還記得夏天的有機基礎上，我們談論過，嘿，我們正在通過這個渠道去庫存。我們說過今年的情況會比歷史上的情況平坦一些。所以你看到的，我們確實在第三季解決了這個問題，這正是我們所期望的。

Now as you think about Q4, sequentially, we're normally down. We're just not down as much as historically we may have been on a more normalized no channel and order pattern challenges that we had in the current year. So think of it as working through that channel item we discussed in the second quarter call.

現在，當您考慮第四季度時，我們通常會下跌。我們只是沒有像歷史上那樣下滑，今年我們可能遇到了更正常化的無通路和訂單模式挑戰。因此，可以將其視為透過我們在第二季電話會議中討論的管道項目進行的工作。

And I think -- Chris, this is John. I heard you squeeze in a mention of Access Technologies in there. And you're right, I mean this is now considered in the organic part of the portfolio. And that business is performing very well. Again, you got strong backlogs, blue-chip customer base and a very healthy service business there. So yes, they've been performing well. Very happy with that acquisition.

我想——克里斯，這是約翰。我聽說你在其中提到了接入技術。你是對的，我的意思是現在這已被考慮在投資組合的有機部分。該業務表現非常好。同樣，您在那裡擁有大量的積壓訂單、藍籌客戶群和非常健康的服務業務。所以是的，他們表現得很好。對這次收購非常滿意。

Yes, I definitely saw the organic growth come through this quarter there. I guess maybe if I could follow up. I think you kind of said earlier that when you talk to your channel partners, it sounds like the destock is largely in the rear view, if I heard that right.

是的，我確實看到了本季的有機成長。我想也許我可以跟進一下。我想你之前說過，當你與渠道合作夥伴交談時，如果我沒聽錯的話，聽起來去庫存很大程度上是在後視圖中。

Does that -- like what does that assume for the cycle? Does that assume like the cycle is kind of flattening out? Are we through the destock even if the cycle kind of is going lower from here? Because it does feel like the amount of inventory in the channel does reflect what the outlook for the cycle is.

這是否就像週期的假設一樣？這是否假設週期趨於平緩？即使週期從這裡開始走低，我們是否會經歷去庫存的過程？因為感覺通路中的庫存量確實反映了週期的前景。

Yes. I think the way I would see that is similar to what Mike said. Given the rather dramatic volatility and upheaval that the entire industry experienced with the ramp in inflation and the pretty acute supply chain challenges in the latter half of -- or actually, all of 2022, no parts in the first half to work overtime, 6 days a week, et cetera, and over-shipped in second half, that is, at least in our view, normalizing.

是的。我認為我的看法與麥克所說的類似。鑑於整個行業經歷了相當劇烈的波動和劇變，通貨膨脹加劇，以及下半年（實際上是2022年全年）相當嚴峻的供應鏈挑戰，上半年沒有零件加班，6天一周等等，下半年超額發貨，也就是說，至少在我們看來，正在正常化。

And I think you could see, as we progress on to another 2, 3, 4 quarters that cycle Allegion's seasonality, et cetera, starts to look more normal. Our lead times across the portfolio are back to a more normal level. And so with the 9-months-or-so construction backlog, a lot of work still out there, book and ship business, like Mike said, and a spec engine that's running all the time. Yes, I'd say we feel just normalizing is maybe the word that I would use, Chris. And that's what it starts to feel like. And again, our channel checks recently would indicate the same.

我想你可以看到，隨著我們進入另外 2、3、4 個季度，Allegion 的季節性循環等開始看起來更正常。我們整個產品組合的交貨時間已恢復到更正常的水平。因此，正如麥克所說，由於積壓了大約 9 個月的施工積壓，還有大量工作要做，包括預訂和運輸業務，以及一直在運行的規格引擎。是的，我想說，我們覺得我可能會用「正常化」這個詞，克里斯。這就是它開始的感覺。同樣，我們最近的渠道檢查也顯示了同樣的情況。

The next question comes from Tim Wojs with Baird.

下一個問題來自 Tim Wojs 和 Baird。

Maybe just -- I have a couple of just kind of modeling questions. But I guess when you're thinking about raw material inputs, steel, copper, zinc, that set of things, I mean, what are you seeing in terms of your purchases today? And how do you think about inflation versus deflation on kind of a go-forward basis on the raw side?

也許只是——我有幾個建模問題。但我想當你考慮到原料投入、鋼鐵、銅、鋅等一系列東西時，我的意思是，你今天的採購看到了什麼？您如何看待原始數據方面的未來通膨與通貨緊縮？

Yes, Tim, it's a great question. If you think of our business, if you remember, pure raw mats, let's call that maybe 15% of our COGS, and the remaining 35% you could get have some element of metal in it from a source component. We would expect to see some favorability, as you've seen. We have had some tailwinds in commodity prices versus previous peaks.

是的，提姆，這是一個很好的問題。如果你想到我們的業務，如果你還記得的話，純原料墊子，我們可以稱之為 COGS 的 15%，剩下的 35% 可以從來源組件中獲得一些金屬元素。正如您所看到的，我們希望看到一些支持。與之前的峰值相比，大宗商品價格出現了一些順風。

However, I'd caution you, there's been significant inflation that we've experienced over the last few years in other elements of the cost base so that we're still in an inflationary environment, but you are getting some relief from the previous highs of the commodity costs. So hopefully, that kind of gives you some color for you to factor in.

不過，我要提醒您，過去幾年我們在成本基礎的其他要素方面經​​歷了嚴重的通貨膨脹，因此我們仍然處於通貨膨脹環境中，但您從之前的高點中得到了一些緩解的商品成本。所以希望這能給你一些可以考慮的色彩。

Okay. No, that's helpful. And then just on pricing, if I kind of take a 3 years kind of stacked price in Americas, I think there was some acceleration kind of sequentially. And I don't think you put through like a new increase, but is there some mix dynamic kind of going in there? Or did you guys put through more price?

好的。不，這很有幫助。然後就定價而言，如果我在美洲採取 3 年的疊加價格，我認為會出現一些連續的加速。我不認為你會進行新的成長，但是其中是否存在某種混合動力？還是你們加價了？

Yes, Tim, as you know, we put price increases in over the last 18 months because we felt so much of that inflationary pressure, right? We manage this equation price plus productivity to cover the inflation and the investments.

是的，提姆，正如你所知，我們在過去 18 個月內增加了價格，因為我們感受到了巨大的通膨壓力，對吧？我們管理這個等式價格加生產力來涵蓋通貨膨脹和投資。

If you think about pricing moving forward, think of us as a more normal business, which does our annual price increase in the kind of the beginning of the year based on an expected inflationary level. No more of the multiple price increases a year. I think that's behind us because inflation has moderated from the previous significantly elevated levels that you saw a year plus ago.

如果你考慮未來的定價，請將我們視為一個更正常的企業，我們的年度價格會根據預期的通膨水準在年初上漲。不再一年多次漲價。我認為這已經成為過去，因為通貨膨脹已比一年多前的顯著升高水平有所放緩。

And so just moving forward, just think of us, price plus productivity versus inflation and investment and, most importantly, we price for value in the market that we provide our customers.

因此，繼續前進，想想我們，價格加生產力與通貨膨脹和投資，最重要的是，我們為客戶提供的市場價值進行定價。

The next question comes from David MacGregor with Longbow.

下一個問題來自長弓的大衛麥格雷戈。

Could you just talk a little bit about the mid-teens organic growth in the electronics and the software solutions business? I don't know to what extent you might be able to open that up for us and help us with price versus units or residential versus non-res or Americas versus International or POS versus inventory build, but any sort of granularity around that would be helpful.

您能否簡單談談電子和軟體解決方案業務中十幾歲的有機成長？我不知道您能在多大程度上為我們開放這一點，並幫助我們處理價格與單位、住宅與非住宅、美洲與國際、POS 與庫存建設等方面的問題，但圍繞這一點的任何粒度都將是有幫助。

Yes, I think in aggregate, mid-teens organic growth in the electronics and software solutions globally, quite proud of those numbers between new product launches and just good execution by the team. And I'd say the end-user demand is still strong. Again, recent end-user visits continue to reinforce this.

是的，我認為總體而言，全球電子和軟體解決方案的自然成長達到了十幾歲，我們對新產品發布和團隊良好執行之間的數字感到非常自豪。我想說最終用戶的需求仍然強勁。最近的最終用戶訪問再次強化了這一點。

I've been to a couple of large universities lately. And even though they've been on the electronics adoption for a couple of years, they're still just scratching the surface. One university was, hey, I've got -- I haven't even started on the dorms yet. I've just been doing classrooms and event buildings and things like this. And as budget comes next year, I'm putting it straight to e-locks for the dorms. I mean that's a sample size of one, but it's indicative of what we're hearing in the end-user base, particularly education and health care.

我最近去過幾所大型大學。儘管他們在電子產品的採用上已經有幾年了，但仍然只是觸及表面。一所大學是，嘿，我已經——我甚至還沒有開始住在宿舍。我剛剛做了教室和活動建築之類的事情。隨著明年的預算到來，我將直接將其用於宿舍的電子鎖。我的意思是，樣本量為 1，但它顯示了我們在最終用戶群中聽到的情況，特別是教育和醫療保健。

I would say our electronics and software business in Europe is doing very well. Blue-chip customer base, great value prop on the electronic cylinder with the SimonsVoss team. Just -- and the plano acquisition adding a bit of inorganic growth into that space as well, and it's a space we'll continue to invest in.

我想說我們在歐洲的電子和軟體業務做得非常好。藍籌客戶群，SimonsVoss 團隊對電子氣缸的巨大價值支持。只是 - 普萊諾的收購也為該領域增加了一些無機增長，這是我們將繼續投資的領域。

Very proudly, it's a tiny amount, but our solution for multifamily in the United States, the Zentra platform, that's a very simple electronic access control platform designed specifically for multifamily applications is now a revenue-generating product for Allegion. So cloud-based SaaS revenue is a reality. It's very small. We're just getting started, but we do expect to accelerate that growth.

非常自豪的是，雖然這個數字很小，但我們為美國多戶家庭提供的解決方案Zentra 平台是一個非常簡單的電子存取控制平台，專為多戶家庭應用而設計，現在已成為Allegion 的創收產品。因此，基於雲端的 SaaS 收入已成為現實。它非常小。我們才剛剛開始，但我們確實期望加速這一成長。

I think the end-user economic benefits of electronics adoption is important and it's real. And I think the smartphone wallet and this mobile credentials and that convenience and the personalized security you get out of that will continue to drive end-user demand. I'd say that's the main trend, David. I wouldn't -- I'd encourage you not to get wrapped around the axle about channel build or restock, destock, anything like that. It's really, this is end user demand-driven.

我認為採用電子產品為最終用戶帶來的經濟效益很重要，而且是真實的。我認為智慧型手機錢包和行動憑證以及從中獲得的便利和個人化安全將繼續推動最終用戶的需求。我想說這是主要趨勢，大衛。我不會——我鼓勵你不要糾結於渠道建設或補貨、去庫存之類的事情。事實上，這是最終用戶需求驅動的。

Right. Okay. And as my follow-up, I mean we're looking at a relatively strong U.S. dollar here, and I'm just wondering what impact that has on your business by drawing more imported product into the marketplace.

正確的。好的。作為我的後續行動，我的意思是我們正在考慮相對強勢的美元，我只是想知道這透過吸引更多進口產品進入市場會對您的業務產生什麼影響。

David, as you think about imports, they play at the very low end of the marketplace in, let's say, North America. If you think of our non-res business, we tend to be really strong in the premium space with our institutional-heavy business. We've been talking about this for years. We tend to be strongest when the customer values that premium offering of complexity and solutions that we provide. So a strong dollar or a weaker dollar is not something that we view as really going to be changing the dynamics of our competitive industry.

大衛，當你想到進口產品時，他們的市場處於非常低端，比如說北美。如果你想到我們的非資源業務，我們往往在高端領域非常強大，我們的機構業務占主導地位。我們已經討論這個問題很多年了。當客戶重視我們提供的優質複雜性和解決方案時，我們往往會變得最強大。因此，我們認為美元走強或美元走弱並不會真正改變我們競爭產業的動態。

Yes, I would add just one comment there, David. Some of our flagship products like the Von Duprin exit devices, like the LCN closers, I mean, these are very proudly manufactured in the United States.

是的，我只想添加一條評論，大衛。我們的一些旗艦產品，例如 Von Duprin 出口裝置，例如 LCN 閉合器，我的意思是，這些產品都是在美國製造的。

The next question comes from Andrew Obin with Bank of America.

下一個問題來自美國銀行的安德魯‧奧賓。

Congratulations on a strong quarter.

恭喜季度表現強勁。

Thank you.

謝謝。

So a question on Europe and sort of the margins in Europe. Can you just give us a sense of what Interflex has been doing, right? Because I know it's one of the higher profitability business. I was just trying to understand how much the mix is at play here. Or if it's not Interflex, just as I said, the performance in Europe has continued to surprise despite the headwinds from the sort of the [bike lock] business, just sort of more insight as to what's driving the structural improvement in margins now.

這是一個關於歐洲和歐洲邊緣的問題。您能為我們介紹一下 Interflex 一直在做什麼嗎？因為我知道這是利潤率較高的業務之一。我只是想了解混合在這裡發揮了多大作用。或者，如果不是 Interflex，正如我所說，儘管受到[自行車鎖]業務的不利影響，歐洲的業績仍繼續令人驚訝，這只是對目前推動利潤率結構性改善的原因有更多的了解。

Yes, Andrew, I really appreciate that question because I am just super proud of how the international team has been on this steady march of building momentum, increasing productivity, expanding margins without a volume tailwind giving them operating leverage to lean on. They've been doing extremely well.

是的，安德魯，我真的很欣賞這個問題，因為我對國際團隊如何穩步前進，建立動力，提高生產力，擴大利潤而感到非常自豪，而沒有銷量順風給他們提供運營槓桿。他們做得非常好。

I would say the Interflex, in particular, we're not going to call out a specific margin or a P&L for them, but that's a very strong business, let's just say. And we're -- we talk about them together with the other electronics portfolio in Europe, double-digit growth for us and has been for a while, strong margin performance as well. And I think we put our money where our mouth is with the plano acquisition. And while that was rather small, the growth potential is quite large, the margin is very attractive and the customer value delivered there between plano and Interflex together is very compelling.

我想說的是，特別是 Interflex，我們不會為他們提供特定的利潤或損益表，但我們只能說，這是一項非常強勁的業務。我們將它們與歐洲的其他電子產品組合一起討論，為我們帶來了兩位數的成長，並且已經有一段時間了，利潤率表現也很強勁。我認為我們在收購普萊諾時已經說到做到了。雖然這個數字相當小，但成長潛力相當大，利潤非常有吸引力，而且 plano 和 Interflex 共同提供的客戶價值非常引人注目。

And Interflex is another one of those very special businesses. Like in this call, we mentioned Access Technologies has a blue-chip customer base. Interflex really has a blue-chip customer base. And we take pride in delighting those customers with good solution and good service, and that business continues to grow and very positive for us.

Interflex 是另一項非常特殊的業務。就像在這次電話會議中一樣，我們提到 Access Technologies 擁有藍籌客戶群。 Interflex 確實擁有藍籌客戶群。我們為能夠以良好的解決方案和良好的服務取悅這些客戶而感到自豪，並且該業務不斷增長，對我們來說非常積極。

Excellent. And just maybe a follow-up question. I think your predecessor, when he started, used to talk quite a bit about discretionary retrofit market in North America being a source of outgrowth and then we sort of stopped talking about it. Can we just talk about where we are there? And what's the remaining opportunity for continuing to increase your market share there? Have you taken a closer look at it? Just maybe an update on this business because it used to be a big source of outgrowth.

出色的。也許只是一個後續問題。我認為你的前任在開始工作時經常談論北美的可自由支配的改造市場是成長的一個來源，然後我們就不再談論它了。我們能談談我們現在所處的位置嗎？繼續增加那裡的市場份額的剩餘機會是什麼？你仔細觀察過嗎？也許只是這項業務的更新，因為它曾經是一個重要的成長來源。

Yes, Andrew, it's a hugely important point when the supply chain challenges hit and orders started piling up and backlog started piling up, you're -- we were in the business of just shipping everything we could to make up for orders that had been in the queue for a long while. And then, obviously, aftermarket work is going to take a backseat to, whatever, 3, 4 months' worth of backlog that's just sitting there in orders that you've already got to fill for project business and other things.

是的，安德魯，當供應鏈挑戰襲來、訂單開始堆積、積壓訂單開始堆積時，這是一個非常重要的時刻，我們的業務就是運送我們所能運送的所有物品，以彌補之前的訂單。在隊列中排了很長一段時間。然後，顯然，售後工作將退居次要地位，無論如何，3、4 個月的積壓訂單只是坐在那裡，你已經必須滿足項目業務和其他事情的訂單。

So I would say I'd feel like when the supply chain challenges were at their worst, we definitely lost some aftermarket share to competitors that Allegion typically doesn't and shouldn't lose share to. We're now in a position with our lead times, our published lead times back to normal, our delivery performance improving. Our supply chain performance is vastly better. We're in a position to now compete and gain that share back.

所以我想說，我覺得當供應鏈挑戰最嚴重時，我們肯定會失去一些售後市場份額給競爭對手，而 Allegion 通常不會也不應該失去份額。我們現在的交貨時間、我們公佈的交貨時間恢復正常、我們的交貨績效得到改善。我們的供應鏈績效好得多。我們現在有能力競爭並奪回這一份額。

And I think that's a real opportunity for us that has been a long time coming. But getting the lead times back to where they ought to be, getting the delivery performance up and getting our internal productivity better now puts us in a better position to get out and win more of that business.

我認為這對我們來說是一個期待已久的真正機會。但是，讓交貨時間回到應有的水平，提高交付績效並提高我們的內部生產力現在使我們能夠更好地走出去並贏得更多業務。

This concludes our question-and-answer session. I would like to turn the conference back over to John Stone, Chief Executive Officer, for any closing remarks.

我們的問答環節到此結束。我想將會議轉回執行長約翰·斯通 (John Stone) 發表閉幕詞。

Well, thanks, everyone, for a great Q&A.

好的，謝謝大家的精彩問答。

And just to wrap up the main themes that I hope you heard today, Allegion continues to operate at a high level. Strong execution drove these Q3 results that include mid-teens organic growth in electronics and software solutions, continued margin expansion and a healthy balance sheet and cash flow, giving us good momentum going into next year.

最後總結我希望您今天聽到的主題：Allegion 繼續保持高水準運作。強勁的執行力推動了第三季的業績，包括電子和軟體解決方案的有機成長、持續的利潤率擴張以及健康的資產負債表和現金流，為我們進入明年提供了良好的動力。

We're on track for a record year of revenue, adjusted operating income and adjusted EPS results in 2023. We will continue to drive organic growth and margin expansion, as we mentioned. In both the short term and the long term, I feel we're very well positioned to both build on our legacy and continue to invent and deliver new value and seamless access.

我們預計在 2023 年實現創紀錄的收入、調整後營業收入和調整後每股收益。正如我們所提到的，我們將繼續推動有機成長和利潤率擴張。無論是短期還是長期，我認為我們都處於非常有利的位置，既可以繼承我們的傳統，又可以繼續發明和提供新的價值和無縫訪問。

Thank you. Be safe, be healthy, have a great day.

謝謝。安全、健康、度過美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。