Slide 1: Second Quarter 2016 Earnings Call
July 28, 2016 Second Quarter 2016 Earnings Call Secure Logistics. Worldwide. Exhibit 99.2
Slide 2: Safe Harbor Statement & Non-GAAP Results
2 Safe Harbor Statement & Non-GAAP Results These materials contain forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target” "project," "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-looking in
Slide 3: Second Quarter 2016 Earnings Call
July 28, 2016 Second Quarter 2016 Earnings Call Secure Logistics. Worldwide.
Slide 4: CEO Introduction
4 • Doug Pertz • Track record of value creation in multiple global businesses • Experience in route-based global logistics businesses serving financial institutions • Successful investments in IT to drive internal productivity and expand customer offerings • Objective: Restore credibility and confid
Slide 5: Summary of Results and Outlook
5 Second-Quarter 2016 Non-GAAP Results (vs. 2015) • 5% organic revenue growth • 5.3% operating margin, up 120 bps; (6.0% excluding currency) • Trailing 12 months Adjusted EBITDA $284 million; 9.9% EBITDA margin, up 80 bps • EPS $.38 vs $.30, up 27% • Negative currency impact: $56 million on revenue;
Slide 6: Summary of 2Q16 Non-GAAP Results
6 $31 2Q15 2Q16 $748 2Q15 2Q16 Summary of 2Q16 Non-GAAP Results $0.30 2Q15 2Q16 EPSRevenue Note: See reconciliation to GAAP results in Appendix. Organic Growth 5% Currency (7)% Operating Profit Margin 4.1% 5.3% ($ Millions, except % and per share amounts) Organic Growth 53% Currency (33)% $38 Report
Slide 7: U.S. & Mexico: 2Q16 Results
7 U.S. & Mexico: 2Q16 Results ($ Millions, except %) 2Q16 • Higher fleet costs • Lower volume/revenue Full-year outlook • Operating profit $5 - $15 • 2H16 vs 1H16 • Lower fleet costs, increased new solutions revenue, revenue capture improvement • Labor efficiencies fund staffing increases to improve
Slide 8: France, Brazil & Canada: 2Q16 Results
8 France, Brazil & Canada: 2Q16 Results $108 $10 Revenue Op Profit France Brazil Canada $67 $3 Revenue Op Profit $38 $1 Revenue Op ProfitOrganic Growth (1)% Margin 9.4% Organic Growth 13% Margin 3.7% Organic Growth 1% Margin 3.7% ($ Millions, except %) • Slight revenue decline in guarding activities
Slide 9: Global Markets: 2Q16 Results
9 • Revenue decline from Ireland disposition and Global Services volume • Strong margin rate improvement from disposition of Ireland Global Markets: 2Q16 Results $96 $10 Revenue Op Profit $85 $21 Revenue Op Profit $42 $7 Revenue Op Profit Organic Growth (3)% Margin 10.3% Organic Growth 23% Margin 24
Slide 10: Non-GAAP Cash Flow, Capital Investment and Net Debt
10 Non-GAAP Cash Flow, Capital Investment and Net Debt $37 $14 $343 $323 6/30/2015 6/30/2016 Net DebtCFOA (Excluding Venezuela) Note: See reconciliation to GAAP results in Appendix. $41 $55 YTD 2015 YTD 2016 Capital Expenditures & Capital Leases ($ Millions) 1H15 1H16 1H15 1H16
Slide 11: Adjusted EBITDA and Valuation Multiple
11 Adjusted EBITDA and Valuation Multiple Adjusted 2014 2015 2016 Outlook EBITDA $272 $291 $305 - 330 EBITDA % 8.1% 9.8% 10.5% - 11.4% 7.5* 8.8* 9.4* Peer A Peer B Peer C 5.6 5.7 6.1 Dec 2014 Dec 2015 Jun 2016 Adjusted EBITDA Multiple Trailing 12 Months * Trailing 12 months as of 3/31/16 or 12/31/15
Slide 12: Continued Improvement Expected in 2016
12 124 157 185 - 200 3.7% 5.3% 6.4% - 6.9% 2014 2015 2016 Outlook -20 -15 -10 -5 0 5 10 -25 25 75 125 175 225 275 2014 2015 2016 Outlook Note: See reconciliation to GAAP results in Appendix Continued Improvement Expected in 2016 Non-GAAP Operating Profit Margin 2016 Non-GAAP Outlook • Revenue $2.9 b
Slide 13: CEO Summary
13 • Brink’s is a great opportunity • Immediate focus… • See operations, meet people, meet customers, learn • Develop “the right vision, right strategy, right team” • Develop plan, process and metrics to drive shareholder value • Communicate long-range plan and targets • Execute CEO Summary
Slide 14: Second Quarter 2016 Earnings Call
July 28, 2016 Second Quarter 2016 Earnings Call Secure Logistics. Worldwide.
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP 2016 Outlook and Key Metrics
16 Note: See reconciliation to GAAP results in Appendix (a) Attributable to Brink’s Non-GAAP 2016 Outlook 20152014 2016 Outlook Revenue $3,351 $2,977 ~$2,900 Op profit 124 157 185 – 200 Interest/Other Income (22) (15) (17) Taxes (47) (52) (66– 71) Noncontrolling interests (6) (5) (5 -7) Income from
Slide 17: Brink's Historical Non-GAAP Results
17 Brink’s Historical Non-GAAP Results ($ Millions, except per share amounts) ($) Margin Operating Profit EPS $0.15 $0.16 $0.12 $0.58 $0.44 $0.30 $0.40 $0.55 $0.30 $0.38 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Note: See reconciliation to GAAP results in Appendix $21 $24 $21 $59 $41 $31 $37
Slide 18: Capex Spend
18 Capex Spend(a) ($ Millions, except ratio) (a) Excluding Venezuela $176 $169 $143 $116 $130 - $140 1.3 1.1 1.0 0.9 ~1.0 0.00. 10.02. 30.04. 5 0.06. 70.08. 90.10. 1 0.12. 30.14. 50.16. 7 0.18. 90.20. 10.22. 3 0.24. 50.26. 70.28. 9 0.30. 10.32. 30.34. 5 0.36. 70.38. 90.40. 1 0.42. 30.44. 50.46. 7 0.
Slide 19: Legacy Liabilities – Underfunding at December
19 Legacy Liabilities – Underfunding at December 31 ($ Millions) Primary U.S. Pension UMWA $(113) $(108) $(114) 2013 2014 2015 Primary U.S. Pension $(142) $(197) $(206) 2013 2014 2015 UMWA
Slide 20: Estimated Cash Payments to Pension and UMWA
20 Estimated Cash Payments: $0 to Primary U.S. Pension until 2020 $0 to UMWA until 2027 ($ Millions) Payments to Primary U.S. Pension Payments to UMWA • Prepaid 2015 and 2016 pension payments in 3Q14 − Accelerated de-risking of invested asset allocation − Reduced PBGC premiums (current borrowing cos
Slide 21: Segment Results and Non-GAAP Results Reconciled to GAAP
Segment Results and Non-GAAP Results Reconciled to GAAP
Slide 22: Other Items Not Allocated to Segments
22 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) Brink’s measures its segment results before income and expenses for corporate activities and for certain other items. A summary of the other items not allocat
Slide 23: Other Items Not Allocated to Segments: Venezuela Operations
23 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) Venezuela operations We have excluded from our segment results all of our Venezuela operating results, including expenses related to currency devaluations of $7.4 million a
Slide 24: Other Items Not Allocated to Segments: Acquisitions and Dispositions
24 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) Acquisitions and dispositions Certain acquisition and disposition items that are not considered part of the ongoing activities of the business and are special in nature are
Slide 25: Non-GAAP Reconciled to GAAP
25 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Amounts may not add due to rounding. See [slide 24] for footnote explanations. 2015 2016 1Q 2Q 3Q 4Q Full Year 1Q 2Q First H
Slide 26: Non-GAAP Reconciled to GAAP
26 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) a) See “Other Items Not Allocated To Segments” on slides 22-24 for pretax amounts and details. Other Items Not Allocated To
Slide 27: Non-GAAP Reconciled to GAAP
27 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Amounts may not add due to rounding. See slide 24 for footnote explanations. YTD'15 YTD'16 Pre-tax Tax Effective tax rate Pr
Slide 28: Non-GAAP Reconciliation – Outlook
28 Non-GAAP Reconciliation – Outlook The Brink’s Company and subsidiaries Reconciliation of Non-GAAP to GAAP 2016 Outlook (Unaudited) (In millions) Amounts may not add due to rounding. a) Non-GAAP outlook excludes the impacts of Venezuela operations and acquisitions and dispositions. b) Non-GAAP out
Slide 29: Non-GAAP Reconciliation – Cash Flows
29 Non-GAAP Reconciliation – Cash Flows The Brink’s Company and subsidiaries Non-GAAP Reconciliations –Cash Flow (Unaudited) (In millions) a) To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure Cash Management Services opera
Slide 30: Non-GAAP Reconciliation – Net Debt
30 Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Net Debt (Unaudited) (In millions) a) 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 genera
Slide 31: Non-GAAP Reconciliation – Items Impacting Adjusted EBITDA
31 Non-GAAP Reconciliation – Items Impacting Adjusted EBITDA The Brink’s Company and subsidiaries Adjusted EBITDA (Unaudited) (In millions) a) Non-GAAP amounts exclude the impact of "Other Items Not Allocated to Segments" on the respective line items on the consolidated statements of operations. b)
Slide 32: Non-GAAP Reconciliation – Items Impacting Adjusted EBITDA
32 Non-GAAP Reconciliation – Items Impacting Adjusted EBITDA The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP - Other (Unaudited) (In millions) a) Refer to the 2015 Fourth Quarter press release exhibit 99.1 on Form 8-K filed February 4, 2016 for details b) Non-GAAP income fro
Slide 33: Non-GAAP Reconciliation – Other
33 Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Other Amounts (Unaudited) (In millions) Fixed Assets Acquired 2012 2013 2014 2015 2015 2016 Capital expenditures - GAAP 170.8 172.9 136.1 101.1 35.2 45.0 Assets aquired under capital lease - GAAP 18.2