Slide 1: Fourth Quarter 2015 Earnings Call
February 4, 2016 Fourth Quarter 2015 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: Fourth Quarter 2015 Earnings Call
February 4, 2016 Fourth Quarter 2015 Earnings Call Secure Logistics. Worldwide.
Slide 4: CEO Overview 2015 Non-GAAP Results
4 CEO Overview 2015 Non-GAAP Results Fourth Quarter • EPS $.55 vs $.58 (up 29% on constant currency basis) • Revenue down 14% • 6.6% margin vs 6.9% • Negative currency impact: $117 million on revenue; $16 million on operating profit; $.20 on EPS Full Year • EPS $1.69 vs $1.01 (up 131% on constant cu
Slide 5: Continued Improvement in 2016 Non-GAAP Operating Profit Margin
5 124 157 190 - 210 3.7% 5.3% 6.7% - 7.4% 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 in 2016 Non-GAAP Operating Profit Margin 2015 Accomplishments • Increased margin to 5.3%
Slide 6: Fourth Quarter 2015 Earnings Call
February 4, 2016 Fourth Quarter 2015 Earnings Call Secure Logistics. Worldwide.
Slide 7: 2015 Operating Results Exceed Original Guidance
7 Notes: * Adjusted to exclude Venezuela See reconciliation to GAAP results in Appendix 2015 Operating Results Exceed Original Guidance Operations* Currency2014* 2015 $1.01 $1.55 - $1.75 $(0.35) $0.89 - $1.09 1 2 3 4 Operations Currency2014* 2015 2015 Guidance (provided in 4Q14 Earnings Release 2/5/
Slide 8: 2016 Non-GAAP EPS Outlook: Continued Strong Operating Improvement
8 2016 Non-GAAP EPS Outlook: Continued Strong Operating Improvement Note: See reconciliation to GAAP results in Appendix. Operations Currency $1.69 $2.00 - $2.20 $0.66 - $0.86 ($0.35) $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2015 Operations Currency 2016 Est 2015 2016 Outlook
Slide 9: 2015 Results
BN) 2015 Results
Slide 10: Non-GAAP EPS: 4Q14 Versus 4Q15
10 Note: See reconciliation to GAAP results in Appendix Non-GAAP EPS: 4Q14 Versus 4Q15 Operating Improvements Offset by Currency Operations Currency4Q14 4Q15 0.58 $(0.20) $0.55 0.17 1 2 3 4
Slide 11: Summary of 4Q15 Non-GAAP Results
11 $848 4Q14 4Q15 Summary of 4Q15 Non-GAAP Results $0.58 4Q14 4Q15 EPSRevenue Note: See reconciliation to GAAP results in Appendix. Organic Growth 0% Currency (14%) $59 4Q14 4Q15 Operating Profit Margin 6.9% 6.6% ($ Millions, except per share amounts) Organic Growth 29% Currency (34%) $ 65 Constant
Slide 12: Non-GAAP EPS: 2014 Versus 2015
12 Non-GAAP EPS: 2014 Versus 2015 Strong Operating Results Offset Currency Impact Operations Currency2014 2015 $1.01 $1.32 $(0.64) $1.69 1 2 3 4 Notes: See reconciliation to GAAP results in Appendix
Slide 13: Summary of 2015 Non-GAAP Results
13 Summary of 2015 Non-GAAP Results $3,351 1 2 $1.01 1 2 EPSRevenue Note: See reconciliation to GAAP results in Appendix. Organic Growth 3% Currency (14%) $124 1 2 Operating Profit Margin 3.7% 5.3% ($ Millions, except per share amounts) Organic Growth 131% Currency (63%) 2014 2015 2014 2015 2014 201
Slide 14: Segment Results
Segment Results
Slide 15: U.S. Results
15 $1.3 $5.9 $3.9 $11.7 $8.3 $6.4 $1.4 0.7% 3.3% 2.1% 6.2% 4.5% 3.5% 0.8% (0.6)% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 U.S. Results ($ Millions, except %) ($) 4Q15 Comments Challenging second half 2015 — Staffing, firearms license timing — Costs to improve service levels — Security costs — Fleet
Slide 16: U.S. 2015 Summary & 2016 Outlook
16 728 730 +2% to 4% 100 200 300 400 500 600 700 800 900 2014 2015 2016 Outlook U.S. 2015 Summary & 2016 Outlook Revenue ($MM) 2015 Summary Challenges managing volume increases and headcount reductions • Staffing, firearms license timing • Customer service levels • Security costs • Fleet costs Key p
Slide 17: U.S. Operations Delayered
17 U.S. Operations Delayered ImpactNew Structure • Eliminated regional VP & Area Director roles • Created District VP role • Increased focus on branch margin • Increased support & accountability for branch performance • Accelerates and moves decision- making closer to the branches • Branch performan
Slide 18: U.S. Fleet Flexibility Drives Savings
18 U.S. Fleet Flexibility Drives Savings Rollout PlanNew & Retrofit Vehicles • New vehicle: lower fuel & maintenance costs • New & retrofit: one-person capable • One-person crew savings opportunity: • Reduce total labor hours • Improve stops per worked hour • No increase in premise or drive time Tra
Slide 19: U.S. Continuous Process Improvement (Cash in Transit example)
19 U.S. Continuous Process Improvement (Cash in Transit example) Measure Performance vs Trend / Target Drives Accountability Branch Dashboards: CIT • Implemented in 4Q 2015 • Improved data • Enables process improvement • Daily KPI to route level • Weekly branch & district reports 19.7 19.5 20 17.7 1
Slide 20: Mexico: Profits Improve Despite Revenue Decline
20 $100 $98 $95 $95 $86 $85 $80 $82 1% (8)% (7)% (4)% (3)% 2% 6% 4% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Mexico: Profits Improve Despite Revenue Decline ($ Millions, except %) Revenue 4Q15 Comments Cost actions and revenue growth more than offset negative currency impact Record-level profits:
Slide 21: 4Q15 Results: France, Brazil & Canada
21 4Q15 Results: France, Brazil & Canada $108 $10.2 Revenue Op Profit France Consistent performance in difficult environment Flat revenue with slight volume decline offset by solutions development Cost actions and productivity offset volume pressures Repositioning business to focus on custom
Slide 22: Global Markets: Strong 4Q15 Performance Despite Currency Headwinds
22 Global Markets: Strong 4Q15 Performance Despite Currency Headwinds Revenue decline in Germany and Ireland as expected, rest of region slow growth and difficult comparisons Continued solid margins Strong organic revenue growth in Argentina offset by currency Another strong quarter from Arg
Slide 23: Non-GAAP Cash Flow, Capital Investment and Net Debt
23 Non-GAAP Cash Flow, Capital Investment and Net Debt $187 $196 2014 2015 $319 $270 12/31/2014 12/31/2015 Net Debt CFOA (Excluding 2014 pension payments & Venezuela) Note: See reconciliation to GAAP results in Appendix. $143 $116 1/1/2014 1/1/2015 Capital Expenditures & Capital Leases ($ Millions)
Slide 24: Outlook
Outlook
Slide 25: 2016 Outlook
25 2016 Outlook $2,977 $2,850 2015 2016 Est. $157 $190 - $210 2015 2016 Est. $1.69 $2.00 – $2.20 2015 2016 Est. Revenue Operating Profit EPS 2015 $2,977 Organic +5% 150 Currency (9)% (277) 2016 Outlook $2,850 Revenue EPS 2015 $1.69 Op Profit 0.75 – 0.99 Currency (0.35) Interest/Taxes/Other (0.09) –
Slide 26: 2016 Non-GAAP Forecast
26 2016 Non-GAAP Forecast 2014 2015 2016 $1.01 $1.69 $2.00 - $2.20 2014 2015 2016 EPSRevenue Note: See reconciliation to GAAP results in Appendix. Organic Growth 3% 5% Currency (14%) (9%) $124 $157 $190 - $210 2014 2015 2016 Operating Profit Margin 3.7% 5.3% 6.7% - 7.4% Outlook Outlook Outlook $3,35
Slide 27: Fourth-Quarter 2015 Earnings Call
February 4, 2016 Fourth-Quarter 2015 Earnings Call Secure Logistics. Worldwide.
Slide 28: Appendix
Appendix
Slide 29: Non-GAAP 2016 Outlook and Key Metrics
29 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 ~$2,850 Op profit 124 157 190 – 210 Interest/Other Income (22) (15) (16) Taxes (47) (52) (68 – 76) Noncontrolling interests (6) (5) (5 -7) Income from
Slide 30: Brink's Historical Non-GAAP Results
30 Brink’s Historical Non-GAAP Results ($ Millions, except per share amounts) (%)($) Margin Operating Profit EPS $21 $24 $21 $59 $41 $31 $37 $49 2.5% 2.9% 2.5% 6.9% 5.4% 4.1% 5.0% 6.6% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 $0.15 $0.16 $0.12 $0.58 $0.44 $0.30 $0.40 $0.55 1Q14 2Q14 3Q14 4Q14 1Q15 2Q
Slide 31: Capex Spend
31 Capex Spend(a) ($ Millions, except ratio) (a) Excluding Venezuela $207 $176 $169 $143 $116 1.7 1.3 1.1 1.0 0.9 0.00. 10.02. 30.04. 5 0.06. 70.08. 90.10. 1 0.12. 30.14. 50.16. 7 0.18. 90.20. 10.22. 3 0.24. 50.26. 70.28. 9 0.30. 10.32. 30.34. 5 0.36. 70.38. 90.40. 1 0.42. 30.44. 50.46. 7 0.48. 90.5
Slide 32: Legacy Liabilities – Underfunding at 12/31/15
32 Legacy Liabilities – Underfunding at 12/31/15 ($ Millions) Primary U.S. Pension UMWA $(113) $(108) $(114) 2013 2014 2015 Primary U.S. Pension $(142) $(197) $(206) 2013 2014 2015 UMWA
Slide 33: Estimated Cash Payments: $0 to Primary U.S. Pension until 2020
33 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 34: Segment Results and Non-GAAP Results Reconciled to GAAP
Segment Results and Non-GAAP Results Reconciled to GAAP
Slide 35: Other Items Not Allocated to Segments
35 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 36: Other Items Not Allocated to Segments
36 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 ($34.3 million in
Slide 37: Other Items Not Allocated to Segments
37 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) Acquisitions and dispositions Gains and losses related to acquisitions and dispositions that have not been allocated to segment results are described below: • Brink’s sold
Slide 38: Non-GAAP Reconciled to GAAP
38 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Amounts may not add due to rounding. See slide 39 for footnote explanations. 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Rev
Slide 39: Non-GAAP Reconciled to GAAP
39 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) a) See “Other Items Not Allocated To Segments” on slides 35-37 for pretax amounts and details. Other Items Not Allocated To
Slide 40: Non-GAAP Reconciled to GAAP
40 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Pre-tax Tax Effective tax rate Pre-tax Tax Effective tax rate Effective Income Tax Rate Non-GAAP 102.7$ 46.9 45.7% 141.3$ 52
Slide 41: Non-GAAP Reconciliation – Cash Flows
41 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 42: Non-GAAP Reconciliation – Net Debt
42 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 gener
Slide 43: Non-GAAP Reconciliation – Other
43 Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Other Amounts (Unaudited) (In millions) Amounts Used to Calculate Reinvestment Ratio Fixed Assets Acquired 2011 2012 2013 2014 2015 Capital expenditures - GAAP 176.0$ 170.8 172.9 136.1 101.1 Assets acq