Supplier Webinar January 14, 2016 © 2014 Allegion plc. All rights reserved.

2 | Presentation Best Practice & Tips Welcome  On February 1, 2016, the ERP system used for the Allegion Indianapolis (“Indy Ops”) location will change to Microsoft (AX)  This system upgrade is being made to the Indy plant location only. o These locations include Von Duprin, Ives and Glynn-Johnson o Additional locations will make the switch in the future.  While most of the changes will be internal in nature, there are a few that will affect our suppliers.  Allegion is diligently working to make this implementation seamless to our supply base. We encourage suppliers to review the following information as it is designed to aid you in working with the Indy Ops team, specifically the business at the Tobey Drive locations.  The regular Materials Buyer/Planner and Strategic Commodity Manager that you communicate with should not change as a result of this ERP implementation We appreciate your understanding and patience as we make the transition.

PURCHASE ORDERS If you use a vision system to enter information from our current purchase order form, the new form may impact your current process and require some format modifications. The PURCHASE ORDER FORMAT is changing. Former “Blanket Orders” will now be referred to as “Purchase Agreements”. Purchase Orders formally known as “releases” are not the same as Purchase Agreements. New Purchase Orders from the new system will be six digits in length. For all non-SOMI suppliers effective upon the new system implementation, all material shipped to Indy Ops locations must reference a purchase order.

Changing:PO Format

Key Changes to New Format The PO number will be different than Purchase Agreement number. YOU MUST INVOICE TO THE PURCHASE ORDER NUMBER

CHANGING:Current Open PO’s  All existing open Purchase Orders will not be reissued in the AX system. They will be converted over which means existing POs will have the same PO number with a “100” prefix Example: will be will be will be will be  Only the ‘open’ amount/quantity on the current PO will be converted.  Upon the transition to the new system, changes to the due dates of open quantities on converted PO’s may change. – Please ship to the dates and quantities previously designated unless directed by your normal Allegion buyer or commodity manager.

Key Changes to Converted PO’s

SOMI For SOMI suppliers shipping to the warehouse, a receipt report will be generated daily. SOMI material payment terms will initiate upon transfer of ownership. – Payment reports will no longer be generated as all material will be received into Indy Ops inventory utilizing a purchase order. – A copy of an internal purchase order with part numbers and quantities received into Indy Ops inventory will be generated daily

Changes to Part Numbers SOMI suppliers that currently ship product to the Indy Ops SOMI Warehouse will see a change to the part number – Current Part Numbers will end with “-SW”. – This is a modification to allow a segregation of Allegion inventory from supplier inventory In some other cases a part number may change to a new part number upon transition to the AX system – If you are a supplier that will be impacted, instructions will be communicated before transition to the new system.

NOT CHANGING:Invoice Address Bill-To Address for Invoices Schlage Lock Company LLC PO Box El Paso, TX 79998−1267 USA If invoice sent via Subject Line must be: PO Box ###### (must be the same one indicated on PO) cc: project manager AP Customer Service Phone (855) :00AM – 8:00PM MT Mon – Fri Hours Invoices are processed by a third party (Xerox fka ACS). Invoices will still be submitted to the same remit address  PO numbers will change and the new numbers must be included on invoices to receive payment  Suppliers should not send invoices for SOMI materials Allegion will self-generate an invoice with an invoice # of SOMI- ###### (###### will represent the PO number)

CHANGING: Payment Notice If your payment is received electronically, please update your address book to include This will be the address for remit-to notifications that will be coming to you.

Miscellaneous Information After the transition to the new system, a more standardized ‘Request for Quote’ process may be initialized Be aware that some information will be transmitted through system generated communication, and may initially be sent to SPAM For further review of this slide deck, please refer to the following website: –

Questions ?