Slide 1: The Brink's Company First Quarter 2015 Earnings Call
The Brink’s Company First Quarter 2015 Earnings Call NYSE: BCO May 1, 2015 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, First-Quarter Results, Segment Review, Outlook
CEO Overview First-Quarter Results Segment Review Outlook First Quarter 2015 Earnings Call May 1, 2015
Slide 4: CEO Overview: First-Quarter 2015 Non-GAAP Results
CEO Overview * First-Quarter 2015 Non-GAAP Results(a) EPS $.41 versus $.15 Revenue down 8% on negative currency translation 4% organic revenue growth Improvement driven by U.S., Mexico, lower corporate expenses 2015 EPS guidance reaffirmed $1.55 - $1.75 Revenue outlook reduced from $3.4 billion to $
Slide 5: First Quarter 2015
First Quarter 2015
Slide 6: Summary of 1Q15 Non-GAAP Results
* Summary of 1Q15 Non-GAAP Results(a) ($ millions, except EPS) Revenue Operating Profit EPS Margin 2.5% 5.4% Organic Growth 4% Currency (12%) (a) See reconciliation to GAAP results in Appendix.
Slide 7: Non-GAAP EPS: 1Q14 Versus 1Q15
* Non-GAAP EPS: 1Q14 Versus 1Q15(a) Strong Operating Results Offset Currency Impact Currency Operations 1Q14 1Q15 $0.15 $0.41 $(0.13) $0.39 (a) See reconciliation to GAAP results in Appendix.
Slide 8: Non-GAAP Cash Flow, Capital Investment and Net Debt
* Non-GAAP Cash Flow, Capital Investment and Net Debt ($ millions) Capital Expenditures and Capital Leases(b) Net Debt(a) Non-GAAP CFOA(a) (Excluding pension payments) $17 $(23) 1Q14 1Q15 See reconciliation to GAAP results in Appendix From continuing operations
Slide 9: First Quarter 2015 Segment Results
First Quarter 2015 Segment Results
Slide 10: U.S. Results: On Track to Meet 2015 Targets
* ($ millions, except %) U.S. Results: On Track to Meet 2015 Targets Strong growth across most lines of business ATM volume up solid double digits Money processing growth from 2014 “wins” Fuel surcharge adjustments a 1.5% drag on revenue, no margin impact Strong volume drives 4Q14/1Q15 profit SG&A r
Slide 11: Mexico: Profits Improve Despite Revenue Decline
Organic Growth ($ millions, except %) * Mexico: Profits Improve Despite Revenue Decline Revenue Peso devaluation drives 1Q15 decline 4Q13/1Q14 lost bank business drives organic decline last 4 quarters Revenue growth in retail partially offset lost bank volume 2Q/3Q14 impact from timing of cost actio
Slide 12: First Quarter Results: France, Brazil & Canada
* First Quarter Results: France, Brazil & Canada France ($ millions) Aviation security growth offsets slight CIT/money processing declines Expect challenging year on low/no revenue growth and Euro devaluation Repositioning business to focus on customer cash supply chain Brazil Revenue growth from pr
Slide 13: Global Markets: Solid Performance Despite Currency Headwinds
* Global Markets: Solid Performance Despite Currency Headwinds EMEA ($ millions) No growth environment & unfavorable currency Continued solid margins Expect full-year revenue decline from currency and Germany guarding contract but similar margins as 2014 Latin America Strong organic revenue growth i
Slide 14: 2015 Outlook
2015 Outlook
Slide 15: 2015 EPS Outlook Unchanged - Reflects Strong Operations
2015 EPS Outlook Unchanged - Reflects Strong Operations (a) * 1Q Actuals $0.15 0.39 (0.13) $0.41 Rest of Year 0.86 0.65 – 0.85 (0.37) 1.14 – 1.34 $1.01 1.04 – 1.24 (0.50) $1.55 – 1.75 Currency Operations 2014 2015 Outlook $1.04 - $1.24 $(0.50) $1.01 $1.55 - $1.75 (a) See reconciliation to GAAP resul
Slide 16: Non-GAAP 2015 EPS Outlook Unchanged: Increased Margin Rate Offsets Lower Revenue
Non-GAAP 2015 EPS Outlook Unchanged: Increased Margin Rate Offsets Lower Revenue (a) * EPS Guidance unchanged: $1.55 - $1.75 2015 Outlook 2014 2015 Outlook Revenue $3,351 ~$3,100 Op Profit 124 165 - 180 Interest/Other Income (22) (21) Taxes (47) (60- 68) Noncontrolling interests (6) (7) Income from
Slide 17: Appendix
Appendix
Slide 18: Brink's Historical Results
* ($ millions, except EPS) Brink’s Historical Results(a) Operating Profit EPS (a) See reconciliation to GAAP results in Appendix.
Slide 19: New Organization Structure and Cost Savings
New Organization Structure 4 geographic units replaced with 2 operating units Eliminated regional roles and structures * How We Achieve Our Profit Goals: $45 - $50 Million Cost Savings Expected in 2015 ($ millions) Global Headcount Reductions Global reductions SG&A and operations Majority of 2015 sa
Slide 20: 2015 & 2016 Margin Rate Targets
* 2015 & 2016 Margin Rate Targets(a) Prior Reporting Format Segment Non-Segment Operating Profit Margin 5.1% (1.4) 3.7% 6.7 – 7.2% (1.4) 5.3 – 5.8% ~8.3% ~(1.3) ~7.0% Non-GAAP Margin (a) See reconciliation to GAAP results in Appendix.
Slide 21: How We Get to 2016 Targets
How We Get to 2016 Targets * ($ millions) 2014 Non-GAAP $3,351 $124 3.7% U.S. @ 6% 21 Mexico @ 10% 29 Rest of World 71 Organic Growth ~5% 300 20 2016 before currency ~3,650 265 Currency impact - 2015 (400) (40) 2016 150 15 2016 Outlook ~$3,400 ~$240 ~7% 2016 Targets(a) Operating Profit Revenue (a) S
Slide 22: Non-GAAP EPS Outlook
* Non-GAAP EPS Outlook(a) Operations 2015 2016 Currency 2015 2016 (a) See reconciliation to 2014 GAAP results and other information in Appendix.
Slide 23: Non-GAAP Revenue Trend
* Non-GAAP Revenue Trend(a) ($ millions) (a) See reconciliation to GAAP results and other information in Appendix.
Slide 24: Reinvestment Ratio
Reinvestment Ratio ($ millions) * Capex Spend Depreciation & Amortization $131 $159 $141 $156 $150
Slide 25: Legacy Liabilities – Underfunding – at December 31, 2014
Legacy Liabilities – Underfunding – at December 31, 2014 * ($ millions)
Slide 26: Prepaid 2015 and 2016 pension payments
Prepaid 2015 and 2016 pension payments in 3Q14 Accelerates de-risking of invested asset allocation Reduces PBGC premiums (current borrowing costs are lower than PBGC premiums) No future cash payments expected based on current actuarial assumptions Lump-sum pension payments made to eligible former em
Slide 27: Other Items Not Allocated to Segments: Venezuela
* Other Items Not Allocated to Segments FX devaluation in Venezuela The rate we use to remeasure operations in Venezuela declined significantly in February 2015 (from 52 to 170 bolivars to the U.S. dollar) and in March 2014 (from 6.3 to 50 bolivars to the U.S. dollar). These currency devaluations re
Slide 28: Other Items Not Allocated to Segments: Reorganization and Restructuring
* Other Items Not Allocated to Segments 2014 Reorganization and Restructuring Brink’s reorganized and restructured its business in December 2014, eliminating the management roles and structures in its former Latin America and EMEA regions and implementing a plan to reduce the cost structure of vario
Slide 29: Non-GAAP Reconciled to GAAP
* Non-GAAP Reconciled to GAAP (In millions, except for percentages and per share amounts) 2014 2014 2014 2014 2014 2014 2014 2014 2014 2015 2015 1Q 2Q 3Q 4Q Full Year 1Q Revenues: Revenues: Revenues: Revenues: Non-GAAP Non-GAAP Non-GAAP Non-GAAP $ 818.3 836.7 847.4 848.1 3,350.5 $ 755.6 Other items
Slide 30: Non-GAAP Reconciled to GAAP
* Non-GAAP Reconciled to GAAP Amounts may not add due to rounding. From continuing operations. See “Other Items Not Allocated To Segments” on slides 27-28 for pre-tax amounts and details. Other Items Not Allocated To Segments for noncontrolling interests, income from continuing operations attributab
Slide 31: Non-GAAP Reconciliations – Cash Flows
* Non-GAAP Reconciliations – Cash Flows To eliminate the change in the balance of customer obligations related to cash received and processed in certain of our secure Cash Management Services operations. The title to this cash transfers to us for a short period of time. The cash is generally credite
Slide 32: Net Debt Reconciliation
* Title to cash received and processed in certain of our secure Cash Management Services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the managem