Slide 1: The Brink's Company Fourth Quarter 2014 Earnings Call
The Brink’s Company Fourth Quarter 2014 Earnings Call NYSE: BCO February 5, 2015 Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Results
Forward-Looking Statements and Non-GAAP Results These materials contain forward-looking statements. Actual results could differ materially from projected or estimated results. Information regarding factors that could cause such differences is available in today's release and in The Brink’s Company’s
Slide 3: CEO Overview, 2014 Results, New Reporting Format, Outlook
CEO Overview 2014 Results New Reporting Format 2015 & 2016 Outlook Fourth Quarter 2014 Earnings Call February 5, 2015
Slide 4: CEO Overview: 2014 Non-GAAP Results
CEO Overview * 2014 Non-GAAP Results(a) Fourth Quarter EPS $.69 vs $.72 Revenue down 12%, organic growth 19% Major currency headwinds Improvement in U.S. Adjusted EPS: $.65 vs $.52 Full Year EPS $1.49 vs $2.13 Adjusted EPS $1.20 vs. $1.40 Revenue down 6%, organic growth 14% 6.1% segment margin (a) S
Slide 5: CEO Overview: 2015 and 2016 Outlook
* CEO Overview (a) See reconciliation to GAAP results in Appendix 2015 and 2016 Outlook 2015 revenue: $3.4 billion Reduced $400 million due to currency decline and dispositions Margin guidance reaffirmed Non-GAAP EPS Guidance(a) $1.55 − $1.75 in 2015 $2.00 − $2.40 in 2016
Slide 6: Recent Actions
* Recent Actions Reorganization Largest 5 Markets – U.S., France, Mexico, Brazil and Canada Global Markets – 36 countries Centralized support functions - IT, HR, finance, legal, procurement, security and project management Expected 2015 savings: $15 million Restructuring Global workforce reductions
Slide 7: Summary
Summary * Strong finish in 2014 Largest 5 markets = profit growth opportunity Focus on U.S. and Mexico Positioned for strong earnings growth
Slide 8: 2014 Results
2014 Results
Slide 9: 4Q14 Non-GAAP Results
* 4Q14 Non-GAAP Results(a) ($ millions, except EPS) (b) Adjusted Non-GAAP results adjusted for Venezuelan results at 50 bolivars per U.S. dollar Revenue Segment Operating Profit EPS Adjusted Non-GAAP (b) $874 $65 $0.52 $0.65 (a) See reconciliation to GAAP results in Appendix $881 $76
Slide 10: Non-GAAP EPS: 4Q13 Versus 4Q14
* Non-GAAP EPS: 4Q13 Versus 4Q14(a) Segment Operating Profit Non-Segment Expense Non-Controlling Interest Tax Rate/Diluted Shares 4Q13 $(0.12) Venezuela 4Q14 $0.25 Other countries (excl. Venezuela and fx) $(0.24) Venezuela (incl. fx) $(0.14) Other foreign currency Net Interest $0.72 $0.69 $(0.13) $0
Slide 11: 2014 Full-Year Non-GAAP Results
* 2014 Full-Year Non-GAAP Results(a) ($ millions, except EPS) Revenue Segment Operating Profit EPS Adjusted Non-GAAP (b) $3,387 $201 $1.40 $3,449 $187 $1.20 (b) Adjusted Non-GAAP results adjusted for Venezuelan results at 50 bolivars per U.S. dollar (a) See reconciliation to GAAP results in Appendix
Slide 12: Non-GAAP EPS: Full Year 2013 Versus 2014
* Non-GAAP EPS: Full Year 2013 Versus 2014 (a) FX Ops/Other Venezuela $2.13 $1.49 $(0.31) $0.10 $(0.43) 2013 2014 Adjusted Non-GAAP (b) $1.40 $0.01 $1.20 $(0.31) $0.10 (b) Adjusted Non-GAAP results adjusted for Venezuelan results at 50 bolivars per U.S. dollar (a) See reconciliation to GAAP results
Slide 13: Non-GAAP Cash Flow, Capital Investment and Net Debt
* Non-GAAP Cash Flow, Capital Investment and Net Debt ($ millions) Preliminary. See reconciliation to GAAP results in appendix From continuing operations Capital Expenditures and Capital Leases(b) Net Debt(a) Non-GAAP CFOA(a) Excluding pension payments: 208 202
Slide 14: Reinvestment Ratio
Reinvestment Ratio ($ millions, except ratio) * Capex Spend Depreciation & Amortization $131 $159 $141 $156
Slide 15: Legacy Liabilities – Underfunding – at December 31, 2014
Legacy Liabilities – Underfunding – at December 31, 2014 * ($ millions)
Slide 16: Prepaid 2015 and 2016 pension payments in 3Q14
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 former em
Slide 17: New Reporting Format Increases Transparency
New Reporting Format Increases Transparency
Slide 18: New Reporting Format Increases Transparency
New Reporting Format Increases Transparency * ($ millions) Revenue Operating Profit(a) North America $ 908 $ 22 Latin America 1,440 98 EMEA 1,074 77 Asia 139 19 3,562 216 Non-Segment -- (47) Total $3,562 $169 Segment Margin(a) 6.1% Operating Profit Margin(a) Operating Profit Margin(a) 4.7% 2014 Old
Slide 19: Global Markets: Delivering Consistent Profits
* Global Markets: Delivering Consistent Profits Revenue ($ millions) Organic growth driven by Venezuela, Argentina and Global Services (BGS) Venezuela decline both in 2014 and 2015 from currency devaluation 2015 organic growth offset in other countries by unfavorable currency Strong margin rates acr
Slide 20: Largest Five Markets: Profit Growth Opportunity
* Largest Five Markets: Profit Growth Opportunity Revenue ($ millions) Organic growth since 2011 completely offset by currency Organic revenue growth Brazil double-digit Other 4 countries low single-digit 2015 Outlook Unfavorable currency impact exceeds organic growth Solid margins in Brazil, France
Slide 21: Fixing U.S. & Mexico To Drive Profit Growth
2014 Revenue % of Total Organic Growth vs. 2013 2014 Operating Profit(a) Margin %(a) United States $ 728 20 % - United States $ 23 3.1 % France 517 15 - France 39 7.6 Mexico 388 11 Mexico 10 2.5 Brazil 364 10 Brazil 34 9.4 Canada 180 5 - Canada 13 7.1 Latin America 592 17 Latin America 91 15.3 EMEA
Slide 22: 2015 & 2016 Outlook
2015 & 2016 Outlook Revenue Reduced by Currency Margin Rate Reaffirmed
Slide 23: 2015 & 2016 Margin Rate Targets Reaffirmed
* 2015 & 2016 Margin Rate Targets Reaffirmed Prior Reporting Format Segment Non-Segment Operating Profit Margin 5.9% (1.3) 4.7% 5.4% (1.4) 4.1% 6.5 – 7.0% (1.4) 5.1 – 5.6% 8.0% (1.3) 6.7% Adjusted Non-GAAP Margin %(a) (a) See reconciliation to GAAP results and other information in Appendix. Adjusted
Slide 24: Currency Impact Reduces 2016 EPS Outlook
Currency Impact Reduces 2016 EPS Outlook * $3.6 ~$3.6 ($ millions, except EPS or as otherwise noted) (b) Adjusted non-GAAP for 2013 and 2016 outlook as reported in third-quarter 2014. (a) See information about reconciliation to GAAP results in Appendix. Adjusted non GAAP results adjusted for Venezue
Slide 25: 2015 Outlook and 2014 Adjusted Non-GAAP Results
2015 Outlook and 2014 Adjusted Non-GAAP Results(a)(b) * Unfavorable currency in Europe, Brazil, Colombia, Argentina, and Mexico Operating margin improvement driven by global cost actions and Mexico, Brazil, Argentina & U.S. EPS Outlook $1.20 $(0.35) $0.74-$0.94 $(0.04) 2014 Currency Op Profit Growth
Slide 26: How We Achieve Our Profit Goals: Cost Savings
New Organization Structure 4 geographic units replaced with 2 operating units Eliminated regional roles and structures * How We Achieve Our Profit Goals: $45 - $50 Million Cost Savings Expected in 2015 ($ millions) Global Headcount Reductions Global reductions SG&A and operations Majority of 2015 sa
Slide 27: How We Achieve Our Profit Goals: Fix the U.S.
* How We Achieve Our Profit Goals: Fix the U.S. U.S. Operating Profit Margin Field Force Automation (% implemented) Deposit Imaging (% implemented) Route Logistics (% implemented) Centralized Billing (% implemented) Key Projects/Actions Route logistics Field force automation Centralized billing Head
Slide 28: How We Achieve Our Profit Goals: Fix Mexico
Standard Branch Structure (% implemented) * How We Achieve Our Profit Goals: Fix Mexico Mexico Operating Profit Margin CIT & ATM Efficiencies (% implemented) Finance Centralization % implemented Key Projects/Actions “Standard” branch structure CIT & ATM efficiencies Finance centralization Money proc
Slide 29: Summary & Conclusion
Summary & Conclusion * Strong finish in 2014 U.S. improvement Good progress on cost and productivity initiatives Earnings growth outlook(a) $1.55 - $1.75 in 2015 $2.00 - $2.40 in 2016 (a) See appendix for information on reconciliations on non-GAAP outlook to GAAP
Slide 30: Appendix
Appendix
Slide 31: Non-GAAP EPS: Full Year 2013 Versus 2014
* Non-GAAP EPS: Full Year 2013 Versus 2014(a) Segment Operating Profit Non-Segment Expense Non-Controlling Interest Tax Rate/Diluted Shares Net Interest $2.13 $1.49 $(0.67) $(0.06) $0.03 $0.24 $(0.18) 2013 2014 ($0.46) Venezuela (incl. fx) ($0.31) Other foreign currency $0.10 Other countries (excl.
Slide 32: Other Items Not Allocated to Segments: Venezuela
* Other Items Not Allocated to Segments FX devaluation in Venezuela The rate we use to remeasure operations in Venezuela declined 16% in February 2013 (from 5.3 to 6.3 bolivars to the U.S. dollar) and 88% in March 2014 (from 6.3 to 50 bolivars to the U.S. dollar). Expenses related to remeasured net
Slide 33: Other Items Not Allocated to Segments: Acquisitions and dispositions
* Other Items Not Allocated to Segments 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 an equity investment in a CIT business in Peru and recognized a $44.3 million gain in the
Slide 34: Adjusted Non-GAAP and Non-GAAP Reconciled to GAAP
* Adjusted Non-GAAP and Non-GAAP Reconciled to GAAP Amounts may not add due to rounding. See slide 38 for footnote explanations. 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014 2014 2014 (In millions) (In millions) (In millions) (In millions) 1Q 2Q 3Q 4Q Full Year 1Q
Slide 35: Adjusted Non-GAAP and Non-GAAP Reconciled to GAAP
* Adjusted Non-GAAP and Non-GAAP Reconciled to GAAP 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 (In millions, except for percentages and per share amounts) (In millions, except for percentages and per share amounts) (In millions, except for percenta
Slide 36: Adjusted Non-GAAP and Non-GAAP Reconciled to GAAP
* Adjusted Non-GAAP and Non-GAAP Reconciled to GAAP Amounts may not add due to rounding. From continuing operations. Effective March 24, 2014, Brink’s began remeasuring its Venezuelan operating results using currency exchange rates reported under a newly established currency exchange process in Vene
Slide 37: 2014 Non-GAAP Results Reconciled to GAAP under Previous Segmentation
* 2014 Non-GAAP Results Reconciled to GAAP under Previous Segmentation Additional explanations provided on slides 34-35. Latin North Asia Total Segment Non-Segment Total Operating (In millions) America EMEA America Pacific Profit (Loss) Non-Segment Profit (Loss) Fourth Quarter 2014 Fourth Quarter 20
Slide 38: 2013 Non-GAAP Results Reconciled to GAAP
* Additional explanations provided on slides 34-35. Amounts may not add due to rounding. Latin North Asia Total Segment Non-Segment Total Operating (In millions) America EMEA America Pacific Profit (Loss) Non-Segment Profit (Loss) Fourth Quarter 2013 Fourth Quarter 2013 GAAP GAAP $ 59.7 19.0 - 2.5 8
Slide 39: Non-GAAP Reconciliations – Cash Flows
* Non-GAAP Reconciliations – Cash Flows To eliminate the change in the balance of customer obligations related to cash received and processed in certain of our secure cash logistics operations. The title to this cash transfers to us for a short period of time. The cash is generally credited to custo
Slide 40: Net Debt Reconciliation
* 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 managem