Slide 1: The Brink's Company Second Quarter 2015 Earnings Call
The Brink’s Company Second Quarter 2015 Earnings Call NYSE: BCO July 30, 2015 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 information. Forwa
Slide 3: Non-GAAP Results
Non-GAAP Results Today’s presentation is focused primarily on non-GAAP results. Throughout the presentation, we have indicated those slides on which Non-GAAP items are presented and included a reference to the reconciliation of non-GAAP to GAAP results. Detailed reconciliations of non-GAAP to GAAP r
Slide 4: CEO Overview: Second-Quarter 2015 Non-GAAP Results
CEO Overview 4 Second-Quarter 2015 Non-GAAP Results(a) • EPS $.27 versus $.16 • Revenue down 11% on negative currency translation • 3% organic revenue growth • Higher profits in Argentina, Mexico & France; lower profits in Brazil • 2015 EPS guidance reaffirmed • EPS $1.55 - $1.75 • Revenue reduced f
Slide 5: Second Quarter 2015
Second Quarter 2015
Slide 6: Summary of 2Q15 Non-GAAP Results
6 Summary of 2Q15 Non-GAAP Results(a) ($ millions, except EPS) 2Q14 2Q15 $837 $748 Revenue 2Q14 2Q15 $24 $31 Operating Profit EPS 2Q14 2Q15 $0.16 $0.27 Margin 2.9% 4.1%Organic Growth 3% Currency (14%) (a) See reconciliation to GAAP results in Appendix.
Slide 7: Non-GAAP EPS: 2Q14 Versus 2Q15
1 2 3 4 7 Non-GAAP EPS: 2Q14 Versus 2Q15(a) Strong Operating Results Offset Currency Impact CurrencyOperations2Q14 2Q15 $0.16 $0.27 $(0.07)$0.18 (a) See reconciliation to GAAP results in Appendix.
Slide 8: Second Quarter 2015 Segment Results
Second Quarter 2015 Segment Results
Slide 9: U.S. Results: On Track to Meet 2015 Targets
9 ($ millions, except %) U.S. Results: On Track to Meet 2015 Targets Operating Profit Full-Year Outlook 4 - 5 % Revenue Organic Growth Margin rate 2Q15 Comments • Strong money processing and CIT volume growth partially offset by lower price • Fuel surcharge adjustments ~2% drag on revenue, minimal m
Slide 10: How We Achieve Our Profit Goals: Fix the U.S.
0% 25% 100% 5% 75% 100% 1H15 YE15 1H16 2H16 Prior Current 50% 100% 100% YE14 1H15 YE15 Prior Current 10 How We Achieve Our Profit Goals: Fix the U.S. 4.5% 1.8% 3.1% 4-5% 6.0% 2012 2013 2014 2015 2016 U.S. Operating Profit Margin Field Force Automation (% implemented) Deposit Imaging (% implemented)
Slide 11: Mexico: Profits Improve Despite Revenue Decline
Organic Growth ($ millions, except %) 11 Mexico: Profits Improve Despite Revenue Decline Revenue 2Q15 Comments • Peso devaluation drives 1Q/2Q 2015 decline • Retail segment driving organic growth in 2015 2Q15 Comments • Cost actions and lower safety /security costs drive improvement • Price increase
Slide 12: How We Achieve Our Profit Goals: Fix Mexico
14% 94% 100% 1H14 YE14 1H15 Standard Branch Structure (% implemented) 0% 28% 100% 41% YE14 1H15 YE15 Prior Current 12 How We Achieve Our Profit Goals: Fix Mexico 4.5% 6.3% 2.5% 6-8% 10% 2012 2013 2014 2015 2016 Mexico Operating Profit Margin CIT & ATM Efficiencies (% implemented) 16% 37% 100% 49% YE
Slide 13: 2Q15 Results: France, Brazil & Canada
$107 $6.7 Revenue Op Profit 13 2Q15 Results: France, Brazil & Canada France ($ millions) • No organic revenue growth on slight volume decline • 3Q profit historically the strongest of the year • Repositioning business to focus on customer cash supply chain Brazil • Volumes decreasing vs. 2014 • Pric
Slide 14: Global Markets: 2Q15 Solid Performance Despite Currency Headwinds
14 Global Markets: 2Q15 Solid Performance Despite Currency Headwinds EMEA ($ millions) • No growth environment & unfavorable currency • Continued solid margins • Expect full-year revenue decline from currency and completion of Germany guarding contract but similar margins as 2014 Latin America • Str
Slide 15: Cash Flow, Capital Investment and Net Debt
$63 $38 1H14 1H15 $58 $41 1H14 1H15 15 Cash Flow, Capital Investment and Net Debt ($ millions) Capital Expenditures and Capital Leases(b) $319 $343 12/31/14 06/30/15 Non-GAAP Net Debt(a) Non-GAAP CFOA(a) (Excluding 2014 pension payments) (a) See reconciliation to GAAP results in Appendix (b) From co
Slide 16: 2015 Outlook
2015 Outlook
Slide 17: Summary of 2015 Non-GAAP Forecast
$124 $165 - $180 2014 2015 17 Summary of 2015 Non-GAAP(a) Forecast ($ millions, except EPS) Revenue Operating Profit EPS Margin 3.7% 5.5% - 6.0%Organic Growth 2% Currency (13%) $3,351 ~$3,000 2014 2015 $1.01 $1.55 – 1.75 2014 2015 OutlookOutlookOutlook (a) See reconciliation to GAAP results in Appen
Slide 18: 2015 Non-GAAP EPS Outlook Unchanged
Start (YE 2014) FX OP YE 2015 2015 Non-GAAP EPS Outlook(a) Unchanged - Reflects Strong Operations 18 1H Actuals $0.31 0.57 (0.20) $0.68 2H Estimate 0.70 0.47 – 0.67 (0.30) 0.87 – 1.07 $1.01 1.04 – 1.24 (0.50) $1.55 – 1.75 CurrencyOperations2014 2015 Outlook $1.04 - $1.24 $(0.50) $1.01 $1.55 - $1.75
Slide 19: Non-GAAP 2015 EPS Outlook Unchanged
Non-GAAP 2015 EPS Outlook Unchanged 19 2015 Outlook2014 Revenue $3,351 ~$3,000 Op Profit 124 165 - 180 Interest/Other Income (22) (19) Taxes (47) (61- 68) Noncontrolling interests (6) (8) Income from continuing ops (b) 49 77 - 86 EPS Range $1.01 $1.55 – 1.75 ($ millions, except EPS) (b) Attributable
Slide 20: The Brink's Company Second Quarter 2015 Earnings Call
The Brink’s Company Second Quarter 2015 Earnings Call NYSE: BCO July 30, 2015
Slide 21: Appendix
Appendix
Slide 22: Brink's Historical Non-GAAP Results
22 ($ millions, except EPS) Brink’s Historical Non-GAAP Results (a) Operating Profit EPS $0.15 $0.16 $0.12 $0.58 $0.41 $0.27 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 $21 $24 $21 $59 $41 $31 2.5% 2.9% 2.5% 6.9% 5.4% 4.1% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 (a) See reconciliation to GAAP results in Appendix. Margin Ra
Slide 23: Non-GAAP EPS Outlook
$1.01 $2.35 - $2.75 $2.00 - $2.40$1.04 - $1.24 $0.30 - $0.50 $0.15 $(0.50) $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2014 2015 2016 Sub-Total 2015 2016 2016 Target 23 Non-GAAP EPS Outlook(a) Operations 2015 2016 Currency 2015 2016 (a) See reconciliation to GAAP results and other information in Appendix
Slide 24: Cost Savings Expected in 2015
New Organization Structure • 4 geographic units replaced with 2 operating units • Eliminated regional roles and structures 24 How We Achieve Our 2015 Profit Goals: $45 - $50 Million Cost Savings Expected in 2015 ($ millions) Global Headcount Reductions • Global reductions • SG&A and operations • Maj
Slide 25: Reinvestment Ratio
$219 $189 $178 $148 $140 - $150 1.7 1.3 1.1 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 0.48. 90.50. 10.52. 3 0.54. 50.56. 70.58. 9 0.60. 10.62. 30.64. 5 0.66.
Slide 26: Legacy Liabilities – Underfunding – at December 31, 2014
Legacy Liabilities – Underfunding – at December 31, 2014 26 $(263) $(113) $(108) 2012 2013 2014 Primary U.S. Pension $(257) $(142) $(197) 2012 2013 2014 UMWA ($ millions)
Slide 27: Estimated Cash Payments to Pension and UMWA
• 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
Slide 28: Other Items Not Allocated to Segments
28 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 r
Slide 29: Other Items Not Allocated to Segments
29 Other Items Not Allocated to Segments Venezuela impairment In the second quarter of 2015, we recognized an impairment of the Venezuela property, plant and equipment. This charge was not allocated to segment results. 2014 Reorganization and Restructuring Brink’s reorganized and restructured its bu
Slide 30: Non-GAAP Reconciled to GAAP
30 Non-GAAP Reconciled to GAAP Amounts may not add due to rounding. See slide [32] for footnote explanations. (In millions, except for percentages and per share amounts) 1Q 2Q 3Q 4Q Full Year 1Q 2Q First Half Revenues: Non-GAAP 818.3$ 836.7 847.4 848.1 3,350.5 755.6$ 748.1 1,503.7 Other items not al
Slide 31: Non-GAAP Reconciled to GAAP
31 Non-GAAP Reconciled to GAAP Amounts may not add due to rounding. (a) See “Other Items Not Allocated To Segments” on slides 29-30 for pretax amounts and details. Other Items Not Allocated To Segments for noncontrolling interests, income from continuing operations attributable to Brink's and EPS ar
Slide 32: Non-GAAP Reconciliations – Cash Flows
32 Non-GAAP Reconciliations – Cash Flows a) 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 cre
Slide 33: Net Debt Reconciliation
33 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 generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the man