Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Investor Presentation (August 2017)
36 slides from Brinks Company (the)'s investor presentation, Aug 7, 2017
Slide 1: Investor Meetings August 2017
S ECU RE LOG IST ICS. WORLDW ID E. Investor Meetings August 2017 EXHIBIT 99.1
Slide 2: Safe Harbor Statement and Non-GAAP Results
Safe Harbor Statement and 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: Why Brink's?
+ + Why Brink’s? Brink’s has the right leadership, the right strategy and the financial strength to drive superior shareholder returns. Market Strength • Premier global brand • Unmatched footprint in 100+ countries • Strong market position People • Leadership with proven track record • Customer-driv
Slide 4: World's Largest Cash Management Company
World’s Largest Cash Management Company2 4 Global cash market $17.9 billion1 South America 25% Rest of World 34% North America 41% GLOBAL MARKET LEADER Loomis G4S Garda Prosegur Other 2016 SEGMENT REVENUE OPERATIONS • 40 countries • 1,000 facilities • 11,900 vehicles • 60,700 employees CUSTOMERS IN
Slide 5: Cash is By Far the Most Used Payment Method Throughout the World
ESTIMATED CASH USAGE IN OUR LARGE MARKETS4 Cash is By Far the Most Used Payment Method Throughout the World 5 1. MasterCard Advisors 2013 2. World Bank Group The Global Findex Database 2014 3. European Central Bank 4. MasterCard Advisors 2013 and San Francisco Federal Reserve Bank 2016 Report 5. Fed
Slide 6: Cash in the U.S. Continues to Grow
48% 33% 27% 27% 23% 25% Less than $25,000 $25,000-$50,000 $50,000-$75,000 $75,000-$100,000 $100,000-… $150,000 and… % of U.S. Population 12% 14% 12% 17% 13% 32% Cash in the U.S. Continues to Grow 6 • Notes in circulation doubled to ~40 billion notes in 2016 vs 1996 • Value of notes in circulation gr
Slide 7: Lines of Business and Customers
CORE SERVICES • Cash-in-Transit (CIT) • ATM services HIGH-VALUE SERVICES • Brink’s Global Services (BGS) • Money processing • Vault outsourcing • CompuSafe® and retail services • Payments Core Services $1.6B (52%) High-Value Services $1.2B (41%) Guarding $0.2B (7%) Financial InstitutionsGovernment/
Slide 8: Global Competitive Landscape
Global Competitive Landscape 1. As of 12/31/16; EBITA and EBITDA are adjusted 2. Loomis 2016 Annual Report converted to USD 3. Figures apply only to cash business. Prosegur cash presentation as of 2/15/17 4. See net debt and EBITA reconciliations in Appendix Revenue EBITA Margin EBITDA Margin Net De
Slide 9: Strong Position in Our Largest Markets
Loomis Garda Other GSI Other Loomis Prosegur Other Temis Other Garda Prosegur Other BRAZIL3 CANADA UNITED STATES2 FRANCE2 MEXICO3 Strong Position in Our Largest Markets 9 ESTIMATED MARKET SHARE IN KEY COUNTRIES 1 1. Internal estimates of market share of CIT/ATM market (as of March 2, 2017) 2. Includ
Slide 10: Room to Grow in Largest Markets
10 RoomafdMrk Canada U.S. France2 Mexico Chile Argentina Brazil Colombia Israel Hong Kong/ Macau 10 largest markets represent 80% of 2016 revenue • Largest player in 3 of top 10 • Second largest player in 7 of top 10 Room to Grow in Largest Markets1 Brink’s All others Legend 1. Excludes Payment Serv
Slide 11: Our Strategy
Our Strategy Accelerate Profitable Growth (APG) Close the Gap — Operational Excellence (CTG) Introduce Differentiated Services (IDS) ACCELERATE PROFITABLE GROWTH • Grow high-value services • Grow account share with large FI customers • Increase focus on smaller FIs • Penetrate large, unvended retail
Slide 12: Strategic Execution – Organic
12 Labor Management (CTG) Strategic Execution – Organic Global Breakthrough Initiatives • “Next generation” trucks starting to come on-line in U.S. • Lower R&M expenses beginning to have an impact in U.S. and Mexico • Expect to convert 60% of U.S. routes by end of 2019 • Lower labor costs beginning
Slide 13: Strategic Execution - Acquisitions
Strategic Execution - Acquisitions Acquisition Update: • “Core – Core” – Core businesses in Core Markets • 4 completed YTD through 7/26 o Expected to be accretive in 2017 o Expect significant accretion in 2019 • Temis France expected to close in 4Q • Robust pipeline of additional opportunities Expec
Slide 14: Maco Accelerates Profitable Growth
Maco Accelerates Profitable Growth (APG) • $209 million expected purchase price • $90 million LTM revenue, $24 million LTM adjusted EBITDA • Significant consolidation synergies expected • ~6x Adjusted EBITDA post-integration (8.7x pre-integration) • Solidifies #2 position in Argentina • Strong custo
Slide 15: Second-Quarter 2017 Non-GAAP Results
Second-Quarter 2017 Non-GAAP Results 15 Continued Momentum in Second Quarter ($ in millions) $717 $760 2016 2017 REVENUE ($ Millions) +6% Organic $39 $60 2016 2017 5.5% Margin OPERATING PROFIT 7.9% Margin + 52% ADJUSTED EBITDA $70 $91 0 20 40 60 80 100 2016 2017 9.7% Margin 12% Margin ($ Millions) +
Slide 16: Second-Quarter Highlights
Second-Quarter Highlights 16 CONTINUED MOMENTUM • Strong improvement in revenue, operating profit, earnings and cash flow • Profit growth in North and South America led by U.S., Mexico, Brazil and Argentina • Execution of 3-year strategic plan gaining traction • 4 acquisitions completed YTD through
Slide 17: 2019 Non-GAAP Operating Profit Target
2019 Non-GAAP Operating Profit Target 17 New Target: 11%+ Operating Margin in 2019 ($ Millions) 2016 Actual Rest of World Contingency 2019 TargetNorth America South America $212 $400 $125 $58 $27 ($67) $355 $45 Completed Acquisitions July 2017 OP Margin 7.3% 3.5% 1.1% 0.3% (1.7%) 10.5% 0.8% 11.3% (a
Slide 18: Value Creation 2019
2016 Currency Adjusted 2019 Target 2016 Currency Adjusted 2019 Target $2,828 2016 Currency Adjusted 2019 Target NON-GAAP REVENUE NON-GAAP EPSNON-GAAP OP PROFIT 18 Value Creation 2019 $2.05 ($ Millions, except % and EPS) ~8% CAGR ~28% CAGR~27% CAGR $3,275 $3,550 $330 $400 $197 $3.50 $4.25 1 1 1 1. 20
Slide 19: Non-GAAP Segment Operating Margin 2016 – 2019
Non-GAAP Segment Operating Margin 2016 – 2019 2016 Results LTM June 2017 Updated 2019 Guidance (7/26/2017) North America 3.3% 4.8% 11.4% South America 16.8% 18.8% 19.1% Rest of World 11.2% 11.8% 12.5% Brink’s Total 7.3% 8.4% 11.3% 19 Closing the Gap Global Competitor Benchmark1 ~15% ~23% ~13% ~14.5%
Slide 20: Continued Improvement Expected in 2017 & Beyond
$163 $212 $270 - $280 $4005.5% 7.3% 8.5% - 8.8% 11.3% 2015 2016 2017 2019 Continued Improvement Expected in 2017 & Beyond Non-GAAP Operating Profit Margin 2017 Non-GAAP Outlook • Revenue $3.2 billion (6% organic growth) • Operating profit $270 - $280 million; margin 8.5% - 8.8% • Adjusted EBITDA $41
Slide 21: Appendix – Table of Contents
Appendix – Table of Contents Leadership Team & Biographies 22-25 2017 & 2019 Non-GAAP Guidance 26-27 2019 Targets 28-34 Non-GAAP Reconciliations 35-36 21
Slide 22: New Leadership…New Focus…New Brink's
General Counsel Chief Administrative Officer Brink’s Global Services South America Rest of World Mexico Brazil Safety & Security PROVEN TRACK RECORD IN: Leading global route-based logistics companies Strategic execution to drive organic growth, margin expansion and ROIC Leveraging IT to increase pro
Slide 23: Executive Bios — Doug Pertz and Ron Domanico
Executive Bios — Doug Pertz and Ron Domanico 23 Doug Pertz President and Chief Executive Officer Douglas (Doug) A. Pertz is the President and Chief Executive Officer and a director of The Brink’s Company and has served in these roles since June 2016. He has led several global companies as CEO over t
Slide 24: Executive Bios — Mike Beech and Mac Marshall
Executive Bios — Mike Beech and Mac Marshall 24 Mike Beech Executive Vice President Michael (Mike) F. Beech is Executive Vice President of Brink’s and President Brazil, Mexico and Security. Previously Mike was President of the company’s Europe, Middle East and Africa (EMEA) region. Mike joined Brink
Slide 25: Executive Bios — Rohan Pal and Amit Zukerman
Executive Bios — Rohan Pal and Amit Zukerman 25 Rohan Pal Senior Vice President, Chief Information Officer and Chief Digital Officer Rohan Pal is Senior Vice President, Chief Information Officer and Chief Digital Officer of Brink’s. Prior to joining Brink’s, Rohan was the Global Senior Vice Presiden
Slide 26: 2017 Non-GAAP Guidance Increased
2017 Non-GAAP Guidance Increased 2016 Results Prior 2017 Guidance (4/26/2017) Organic Currency Acquisitions (1) Updated 2017 Guidance (7/26/2017) Increase vs 2016 Revenue $2,908 $3,036 ‒ $92 $52 $3,180 9% Operating Profit $212 $235-$245 $20 $5 $10 $270-$280 ~30% Operating Margin 7.3% 7.8%-8.2% 8.5%-
Slide 27: 2019 Non-GAAP Guidance Increased
2019 Non-GAAP Guidance Increased 2016 Results Prior 2019 Guidance Organic Currency Acquisitions (1) Updated 2019 Guidance (7/26/2017) Increase vs 2016 Revenue $2,908 $3,275 ‒ $100 $175 $3,550 22% Operating Profit $212 $330 $20 $5 $45 $400 89% Operating Margin 7.3% 10% 11.3% 4 pts. Adjusted EBITDA $3
Slide 28: 2019 Non-GAAP Financial Targets
2019 Non-GAAP Financial Targets 28 2016 Currency Adjusted 2019 Target REVENUE ($ Millions) ~8% CAGR $2,828 $3,550 1 $197 $400 2016 Currency Adjusted 2019 Target OPERATING PROFIT ($ Millions) ~11.3% Margin 7.0% Margin ~27% CAGR ~103% Growth 1 $316 $560 2016 Currency Adjusted 2019 Target ADJUSTED EBIT
Slide 29: 2019 Non-GAAP Revenue Target Contribution by Segment
Annual Organic Growth ~5% ~9% ~2% ~5% ~5% 2019 Non-GAAP Revenue Target CONTRIBUTION BY SEGMENT 29 ($ in millions) Target: 5% Annual Organic Revenue Growth $2,908 $239 $218 $111 ($101) $3,375 $175 $3,550 2016 Actual North America South America Rest of World Contingency 2019 Target before Acquisitions
Slide 30: 2019 Non-GAAP Operating Profit Target
2019 Non-GAAP Operating Profit Target 30 New Target: 11%+ Operating Margin in 2019 ($ Millions) 2016 Actual Rest of World Contingency 2019 TargetNorth America South America $212 $400 $125 $58 $27 ($67) $355 $45 Completed Acquisitions July 2017 OP Margin 7.3% 3.5% 1.1% 0.3% (1.7%) 10.5% 0.8% 11.3% (a
Slide 31: North America Segment 2019 Operating Profit Target
$40 $165 $81 $35 $9 2016 Actual U.S. Mexico Other 2019 Target North America Segment 31 2019 OPERATING PROFIT TARGET OP Margin 3.3% 5.5% 2.1% 0.5% 11.4% ($ in millions) U.S. Offers Greatest Opportunity Note: 2019 Targets exclude acquisitions
Slide 32: 2019 U.S. Operating Profit Improvement
2019 U.S. OPERATING PROFIT IMPROVEMENT 1 2016 Base Branch Standardization Fleet Improvements One-Person Vehicle Labor Network Optimization Sales Growth/ CompuSafe IT Contingency 2019 Target A Clear Path to Value Creation in the U.S. 32 ($ in millions) Actual 0.8% Revenue $753 $870 ~10% $14$18$21 Bre
Slide 33: South America Segment Path to 2019 Strategic Goals
South America Segment 33 PATH TO 2019 STRATEGIC GOALS 2016 Brazil Core Growth Productivity High Margin Solutions 2019 Target OPERATING PROFIT OP Margin 16.8% 0.8% 0.5% 0.5% 0.5% 19.1%
Slide 34: Rest of the World Segment Path to 2019 Strategic Goals
Rest of the World Segment 34 PATH TO 2019 STRATEGIC GOALS 2016 France Core Growth Productivity High Margin Solutions 2019 Target OPERATING PROFIT OP Margin 11.2% 0.9% 0.1% 0.1% 0.2% 12.5%
Slide 35: Non-GAAP Reconciliation — Net Debt
Non-GAAP Reconciliation — Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations — Net Debt (Unaudited) (In millions) a) Restricted cash borrowings are related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently
Slide 36: Non-GAAP Reconciliation — EBITA
Non-GAAP Reconciliation — EBITA The Brink’s Company and subsidiaries Non-GAAP Reconciliations — EBITA (In millions) (a) Detailed reconciliations of non-GAAP to GAAP results are included in the First Quarter 2017 earnings release in the Quarterly Results section of the Brink’s website: www.brinks.com