Slide 1: The Brink's Company Second Quarter 2014 Earnings Call
NYSE: BCO July 24, 2014 The Brink’s Company Second Quarter 2014 Earnings Call Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Results
Forward-Looking Statements and Non-GAAP Results These materials contain forward-looking statements. Actual results could differ materially from projected or estimated results. Information regarding factors that could cause such differences is available in today's release and in The Brink’s Company’s
Slide 3: CEO Overview
CEO Overview Second Quarter Non-GAAP • EPS $.27 vs $.47 • Segment profit down $18 million – $9 million organic decline - primarily Mexico and France – $9 million negative currency Looking Ahead • 2014 guidance unchanged – Non-GAAP segment margin 6.5%, revenue ~$3.7 billion • 2016 Non-GAAP Targets –
Slide 4: 2Q14 Non-GAAP Results
2Q14 Non-GAAP Results ($ millions, except EPS) Note : See reconciliation to GAAP results in appendix Revenue Segment Operating Profit EPS
Slide 5: EPS: 2Q13 Versus 2Q14
Non-GAAP EPS: 2Q13 Versus 2Q14 Segment Operating Profit Non-Segment Expense Interest Expense, Net Non- Controlling Interest Tax Rate/Diluted Shares 2Q13 2Q14 Note: See reconciliation to GAAP results in appendix $(0.04) Venezuela
Slide 6: Cash Flow, Capital Investment and Net Debt
Non-GAAP Cash Flow, Capital Investment and Net Debt ($ millions) (a) See reconciliation to GAAP results in appendix Capital Expenditures and Capital Leases Net Debt (a)
Slide 7: Estimated Cash Payments to Primary U.S. Pension & UMWA
Estimated Cash Payments to Primary U.S. Pension & UMWA • Accelerating required 2015 and 2016 payments ($61 million) into 2014 − Accelerate the de-risking of invested asset allocation − Lower Pension Benefit Guaranty Corp (PBGC) premiums (current borrowing costs are lower than PBGC premiums) • Plan t
Slide 8: 2016 Targets
2016 Targets 2016 Non-GAAP Targets (a) • 8% segment margin • $290 - $330 million segment profit • $2.50 - $3.00 EPS How We Get There • Fix U.S. and Mexico • Rest of world margin +1.0% point • Organic revenue growth ~5% • Operational excellence – Global procurement – Centralization (a) See appendix f
Slide 9: 2016 Targets
Non-GAAP 2016 Targets (a) 2013 Non-GAAP results adjusted for Venezuelan results at 50 bolivars per U.S. dollar. See appendix for reconciliations to GAAP and other information. (b) Includes all regional/corporate allocated costs 2016 Target Margin / Potential EPS Growth (a) Segment Op Profit EPS 2013
Slide 10: North America Non-GAAP Segment Margin Outlook (excluding Global Payments)
North America Non-GAAP Segment Margin Outlook (excluding Global Payments) Note: See appendix for reconciliation to GAAP
Slide 11: U.S. Profit Improvement 2013 to 2016
U.S. Profit Improvement 2013 à 2016 ($ millions) Revenue Operating Profit (a) SG&A (a) Branch Margin (a) Profit Costs % of Revenue 2% 6% (a) On a Non-GAAP basis. See reconciliation to GAAP results in appendix.
Slide 12: U.S. - Performing Branches
U.S. - Performing Branches Performing branch = Operating profit above breakeven on a fully loaded cost basis Productivity Projects • Route logistics • Field force automation • Centralized billing • CompuSafe® service focus • Vehicle armoring and maintenance • One-man crew on CIT • Project management
Slide 13: North America Non-GAAP Segment Margin Outlook (excluding Global Payments)
North America Non-GAAP Segment Margin Outlook (excluding Global Payments) Note: See appendix for reconciliation to GAAP and other information
Slide 14: Mexico Non-GAAP Segment Margin Rate History and Outlook
Mexico Non-GAAP Segment Margin Rate History and Outlook Note: See reconciliation to GAAP in appendix
Slide 15: Mexico Profit Improvement 2013 to 2016
Mexico Profit Improvement 2013 à 2016 % of Revenue 14% 18% % of Revenue 9% 8% Revenue Operating Profit (a) Branch Margin (a) Profit % of Revenue 5% 10% ($ millions) (a) See reconciliation to GAAP and other information in appendix SG&A (a) Costs
Slide 16: Mexico Branch Margin Improvement
Mexico Branch Margin Improvement 4% Reduction ($ millions) Operational Structure (Branch Costs) 10% Reduction Administrative Structure (Support Functions) Productivity Projects • “Standard” branch structure • Centralization • Finance shared services • Money processing • Global procurement (a) (a) Ex
Slide 17: Mexico Money Processing Improvements
Mexico Money Processing Improvements Money Processing Efficiency Metric (notes per hour, per person) Capex Spend (millions) Headcount
Slide 18: Mexico Non-GAAP Segment Margin Rate History and Outlook
Mexico Non-GAAP Segment Margin Rate History and Outlook Note: See reconciliation to GAAP in appendix
Slide 19: Operational Excellence
Operational Excellence Global Procurement IT Centralization
Slide 20: Global Procurement
Global Procurement 20% Reduction Armored Vehicles (Acquisition Costs per Vehicle) Expect to Deliver 20% Savings by 2016 • Global tender • Re-design vehicles • Improved match of vehicle type to environment Non-Armored Vehicles ( Acquisition Costs per Vehicle) 20% Reduction ($ millions)
Slide 21: Global Procurement
Global Procurement • Vehicle standardization • Vehicle maintenance • Money processing equipment • Contractors/purchased services • Global tenders • ATM locks Global Travel Costs Next Focus Areas $5 to $10 Reduction Implemented global travel agent 1H14 ($ millions)
Slide 22: IT Centralization
IT Centralization ($ millions) Global IT Costs Data Centers Key Projects • Global data center strategy • Global alignment of IT organization & spend • Global procurement/tender of IT equipment • Global application map • Network & telephone rationalization 60% Reduction $15 to $20 Reduction
Slide 23: 2016 Targets
2016 Targets 2016 Non-GAAP Targets (a) • 8% segment margin • $290 - $330 million segment profit • $2.50 - $3.00 EPS How We Get There • Fix U.S. and Mexico • Rest of world margin +1.0% points • Organic revenue growth ~5% • Operational excellence – Global procurement – Centralization (a) See appendix
Slide 24: Appendix
Appendix
Slide 25: Legacy Liabilities - Underfunding - at December 31, 2013
Legacy Liabilities - Underfunding - at December 31, 2013 ($ millions)
Slide 26: Capex Spend
Capex Spend Reinvestment Ratio ($ millions, except ratio)
Slide 27: Reconciliations - 1Q2014
Non-GAAP Reconciliations - 1Q2014 GAAP Basis Expenses Related to Currency Devaluation in Venezuela (a) Losses on Closure (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Share-based Compensation Adjustment (e) Adjust Income Tax Rate (f) Non- GAAP Basis Adjust Venezuela to 50 Boli
Slide 28: Reconciliations - 2Q2014
Non-GAAP Reconciliations - 2Q2014 GAAP Basis Expenses Related to Currency Devaluation in Venezuela (a) Losses on Closure (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Share-based Compensation Adjustment (e) Adjust Income Tax Rate (f) Non- GAAP Basis Adjust Venezuela to 50 Boli
Slide 29: Reconciliations - First Half 2014
Non-GAAP Reconciliations - First Half 2014 GAAP Basis Expenses Related to Currency Devaluation in Venezuela (a) Losses on Closure (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Share-based Compensation Adjustment (e) Adjust Income Tax Rate (f) Non- GAAP Basis Adjust Venezuela t
Slide 30: Reconciliations - 2014 Notes
Non-GAAP Reconciliations - 2014 Notes (a) To eliminate the effects of the March 2014 currency devaluation in Venezuela as described in (g) below. Expenses eliminated from non-GAAP results include first-quarter currency exchange losses totaling $122 million related to remeasured net monetary assets a
Slide 31: Reconciliations - 1Q2013
Non-GAAP Reconciliations - 1Q2013 GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Adjust Venezuela to 50 Bolivars to
Slide 32: Reconciliations - 2Q2013
Non-GAAP Reconciliations - 2Q2013 GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Adjust Venezuela to 50 Bolivars to
Slide 33: Reconciliations - First Half 2013
Non-GAAP Reconciliations - First Half 2013 GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Adjust Venezuela to 50 Bol
Slide 34: Reconciliations - 3Q2013
Non-GAAP Reconciliations - 3Q2013 GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Adjust Venezuela to 50 Bolivars to
Slide 35: Reconciliations - 4Q2013
Non-GAAP Reconciliations - 4Q2013 GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non- GAAP Basis Adjust Venezuela to 50 Bolivars to
Slide 36: Reconciliations - Full Year 2013
Non-GAAP Reconciliations - Full Year 2013 GAAP Basis Gains and Losses on Acquisitions and Dispositions (a) Expenses Related to Currency Devaluation in Venezuela (b) Employee Benefit Settlement Losses (c) U.S. Retirement Plans (d) Adjust Income Tax Rate (e) Non-GAAP Basis Adjust Venezuela to 50 Boliv
Slide 37: Reconciliations - 2013 Notes
Non-GAAP Reconciliations - 2013 Notes (a) To eliminate • a $1.1 million adjustment in the first quarter of 2013 to the amount of gain recognized on a 2010 business acquisition in Mexico as a result of a favorable adjustment to the purchase price received in the first quarter of 2013. • $1.7 million
Slide 38: Reconciliations - Cash Flows
Non-GAAP Reconciliations - Cash Flows NON-GAAP CASH FLOWS FROM OPERATING ACTIVITIES - RECONCILED TO AMOUNTS REPORTED UNDER U.S. GAAP First Half Cash flows from operating activities - GAAP $ 47.6 $ 41.1 Decrease (increase) in certain customer obligations (a) (8.1) (14.2) (0.9) Cash flows from operati
Slide 39: Reconciliations - Projected Financial Information
Non-GAAP Reconciliations - Projected Financial Information GAAP 0.6% 3-4% 4-5% 7% U.S. Profit Improvement Outlook Branch Margin SG&A Operating Profit 2013 2016 2013 2016 2013 2016 Non-GAAP $ 112 134 99 87 13 47 Pension expense (11) 1 1 0 (12) 1 GAAP $ 101 135 100 87 1 48 Mexico Segment Margin Histor
Slide 40: Net Debt - Reconciled to U.S. GAAP
NET DEBT - RECONCILED TO U.S. GAAP June 30, December 31, 2014 2013 Debt: Long-term debt 449.0 355.1 Less: Cash and cash equivalents 224.7 255.5 Amounts held by Cash Management Services operations (a) (39.2) (31.3) Cash and cash equivalents available for general corporate purposes 185.5 224.2 Net Deb