Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Investor Presentation (December 2008)
25 slides from Brinks Company (the)'s investor presentation, Dec 10, 2008
Slide 1: Management Presentation December 10, 2008
Management Presentation December 10, 2008 Management Presentation December 10, 2008
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation, including questions and answers, may contain both historical and forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from projected results. Additional information
Slide 3: Agenda
Agenda n Introduction n Brink’s Business Overview n Financial Highlights n Summary Michael J. Cazer Vice President & Chief Financial Officer Edward A. Cunningham Director of Investor Relations & Corporate Communications
Slide 4: Brink's Company Overview
Brink’s Company Overview World’s premier security company n Founded in 1859, Brink’s is the oldest and largest secure logistics company n Diversified operations with LTM revenues of $3 billion as of September 30, 2008 n Approximately 50,000 employees, 800 facilities and 9,000 vehicles worldwide
Slide 5: The Brink's Company
The Brink’s Company n Solid core industry dynamics n Premier brand n Leader in business segments n Proven operational excellence n Global footprint n Growth strategy n Strong financial performance
Slide 6: Solid Core Industry Dynamics
Solid Core Industry Dynamics Global Outsourced Cash Logistics Market Source: Central Banks, Internal Company Estimates ($Bn) $2.3 - $2.8Bn Notes in Circulation ¢ Cash use growing with GDP in developed markets ¢ Faster growth in developing economies ¢ Customer outsourcing (Cash Logistics) increasing
Slide 7: Premier Brand
Premier Brand n Globally recognized brand n A brand built on – Trust and integrity – Quality of our people – Safety and security – Operational excellence – History and heritage – Global network n 150th Anniversary in 2009
Slide 8: Leader in Business Segments: Secure Logistics Market Share
Leader in Business Segments Secure Logistics Leading Share in Fragmented Secure Logistics Market Total: $14 billion Brink’s Securitas / Loomis G4S Others Prosegur Estimated 2007 Global Secure Logistics Market Share Source: Internal Company Estimates
Slide 9: Leader in Business Segments: Business Lines, Products and Services
Leader in Business Segments Business Lines, Products and Services 2007 Revenue (% of Total) Description High Value Services Cash-in-Transit Security Services n Armored car transportation n Point-to-point pick-up and delivery of cash, coins, checks and other valuables n ATM services n Provides infras
Slide 10: Cash Logistics: Features & Benefits
Cash Logistics Retailer Bank Leader in Business Segments Cash Logistics: Features & Benefits Benefits Brink’s Facility (Virtual Vault) l Builds on CIT & IT capabilities l Money processing (sorting, counterfeit checking, packing, distribution) l Virtual vaulting (processing & storage of cash for bank
Slide 11: Leader in Business Segments: Relative Growth and Margins
Leader in Business Segments Relative Growth and Margins Security Services Cash-in-Transit High Value Services n Global Services n Cash Logistics n New Services
Slide 12: Proven Operational Excellence
Proven Operational Excellence n Demonstrated global expertise – Security – Risk management – Logistics – Pricing discipline – Human resource management – IT capabilities
Slide 13: Global Footprint
Global Footprint North America Asia Pacific Latin America Europe, Middle East, Africa 786 branches in 50 countries plus 66 additional countries served by Global Services Canada 56 Branches United States 197 Branches EMEA 269 Branches 26 Countries Asia Pacific 31 Branches 13 Countries Latin America 2
Slide 14: Global Footprint: Segment Revenue and Operating Profit
Global Footprint Brink’s Segment Revenue and Operating Profit Revenue Operating Profit North America Asia Pacific Latin America Europe, Middle East and Africa Total: $3 billion International Total: $279 million Note: (1) Last Twelve Months LTM September 30, 2008 (1) LTM September 30, 2008 (1)
Slide 15: Growth Strategy
Growth Strategy n Core – Increase share in current geographic markets – Penetrate new geographies with strong growth potential – Continue to develop and grow high-margin products and services Ÿ Cash Logistics, CompuSafe ® Services, Global Services – Provide full-range cash management solutions n Plu
Slide 16: Strong Financial Performance: Revenue Growth
Strong Financial Performance Revenue Growth Revenue * Note: See Appendix for non-GAAP reconciliation
Slide 17: Strong Financial Performance: Profit Growth
Brink’s as Reported 113 145 120 184 223 147 203 Adjustments (1) 9 6 2 1 1 1 8 Corporate/Former Ops (97) (88) (84) (75) (64) (48) (52) Pro Forma Op Profit 25 63 38 111 161 100 159 Strong Financial Performance Profit Growth Pro-Forma Operating Profit ($MM) Note: (1) Includes effect of divestiture of U
Slide 18: Strong Financial Performance: Enhancing Margins
Strong Financial Performance Enhancing Margins n Continue developing IT capabilities – CompuSafe® Service, Virtual Vaulting, I-Deposit, etc. n Investing in sales and marketing – Selling solutions n Grow high-margin business – Global Services, Cash Logistics n Grow in high-margin geographies – BRIC,
Slide 19: Strong Financial Performance: Balance Sheet
Strong Financial Performance Balance Sheet Cash $258 Debt (163) Net cash/(debt) (1) $ 95 n $95 million net cash at September 30, 2008 n Strong cash flow from operations n Over $350 million of available borrowing capacity n Investment grade credit rating Note: (1) Non-GAAP reconciliation
Slide 20: Strong Financial Performance: Long-Term Objectives
Strong Financial Performance Long-Term Objectives Revenue High single-digit % growth per year Operating Margins Improve by 50 bps per year
Slide 21: Revenue Growth Across Economic Cycles
Strong Financial Performance Revenue Growth Across Economic Cycles Strong Financial Performance Revenue Growth Across Economic Cycles Sources: U.S. Department of Commerce - Bureau of Economic Analysis, Internal Company Data
Slide 22: Execution Creates Value
Strong Financial Performance Execution Creates Value ($) Note: (1) $100 invested on December 31, 2001 in stock or index. Includes reinvestment of dividends Cumulative Stock Total Return (1)
Slide 23: Summary
Summary n Solid core industry dynamics n Premier brand n Leader in business segments n Proven operational excellence n Global footprint n Growth strategy n Strong financial performance
Slide 24: Appendix
Appendix Appendix
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation Revenue 2003 2004 2005 2006 2007 9M 2007 9M 2008 Brink’s as reported 1,689.0 1,931.9 2,113.3 2,354.3 2,734.6 1,977.8 2,404.0 Divestiture of UK cash handling operations (25.3) (33.9) - - - - - Pro-Forma 1,663.7 1,898.0 2,113.3 2,354.3 2,734.6 1,977.8 2,