Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Investor Day (October 2010)
81 slides from Brinks Company (the)'s investor day presentation, Oct 7, 2010
Slide 1: The Brink's Company
The Brink’s Company Dallas, Texas October 7, 2010 Exhibit 99-1
Slide 2: The Brink's Company
The Brink’s Company Edward A. Cunningham Director - Investor Relations
Slide 3: Agenda
Agenda Overview Michael Dan Financial Review Joe Dziedzic Global Synergies Ron Rokosz Security Mike Beech Global Services Amit Zukerman Asia Pacific Ron Rokosz EMEA Mike Cazer North America Larry Rodo Latin America Tom Maffey
Slide 4: Forward-Looking Statements
Forward-Looking Statements This presentation, including questions and answers, contains 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 regarding factors that
Slide 5: The Brink's Company
The Brink’s Company Michael T. Dan Chairman, President and Chief Executive Officer
Slide 6: A Long History of Success
A Long History of Success Established
Slide 7: Secure Logistics - State of the Industry
46% Secure Logistics - State of the Industry u Cash is growing everywhere u A Dangerous World u Financial Crisis and Recession Loomis G4S Others Prosegur Global Market Share Total $14 Billion Leading Share in Fragmented Market 19% 15% 8% 12% Source: Internal Estimates
Slide 8: How We Manage Brink's
How We Manage Brink’s u Invest to protect employees and customer assets u Global strategy u Disciplined execution
Slide 9: How We Will Grow
How We Will Grow u Maximize profits in developed markets u Invest in: ¡ Higher-margin “solutions” ¡ Emerging markets ¡ Adjacencies - commercial security, payment processing
Slide 10: Financial Review
The Brink’s Company Joseph W. Dziedzic Vice President and Chief Financial Officer Financial Review
Slide 11: Revenue Dynamics
Revenue Dynamics Demonstrated Growth Global Recession ($ millions) 8 - 10% Growth Note: Revenues are non-GAAP. See Appendix for reconciliation to GAAP. Low to mid single-digit Organic Growth
Slide 12: Segment Profit Dynamics
Demonstrated Growth Global Recession Growth + Margin Expansion ($ millions) Margin Rate 7.6% 7.5% Margin Rate 6.0% 6.5 - 7.0% Back to Growth + 50 bps Per Year 10% Margin Rate Segment Profit Dynamics Note: Segment Operating Profit is non-GAAP. See Appendix for reconciliation to GAAP.
Slide 13: Regional Revenue and Margin Outlook
Regional Revenue and Margin Outlook Revenue Outlook GDP+ GDP Strong Growth Strong Growth Long-Term Margin Outlook +50-75 bps/year + 50 bps/year, Low teens Low teens ~7% target 10% Target ($ millions) * 2009 revenues are non-GAAP. See Appendix for reconciliation to GAAP. Latin America Asia North Amer
Slide 14: Cash Flow Generation & Uses
CFOA * (excluding legacy liabilities) $792 Generated Uses of Cash ($ millions) Cash Flow Generation & Uses Solid Cash Generation Supports Growth * See reconciliation to GAAP in Appendix.
Slide 15: Capital Expenditures
2007 - 2009 ($ millions) Capital Expenditures Investing for Growth… Facilities, Emerging Markets & CompuSafe Spend by Category 5.4% 5.2% 5.2% % of Revenue ~65% of Growth since ‘07 from CompuSafe® Service
Slide 16: Legacy Liabilities...Cash Flow is Manageable
Legacy Liabilities...Cash Flow is Manageable (S millions) U.S. Pension UMWA Black Lung & S811 152 Other 658 $466 Liability Assets Liability Liability Estimated Contributions to U.S. Plans 2010 2011 2012 2013 2014 US Pension $0 i) 28 38 5S BY UMWA 0 0 0 0 0 Black Lung/Other 8 8 8 7 zi Total $8 8 35 4
Slide 17: Financial Summary
Financial Summary u Strong Balance Sheet § $143 cash, $330 unused credit § Investment Grade Credit rating BBB/Baa2 u Manageable legacy liabilities § Total underfunding $375M § ~$135M cash outflow ‘10-‘14 u Proactive in Venezuela § Continue local investment § Strong local management u ~ 40% capex spe
Slide 18: Long-Term Outlook
Long-Term Outlook u North America § Solutions focus… GDP growth § Productivity…10% profitability u Latin America § Strong growth… solutions… CIT… inflation… adjacency expansion § Sustain margins u EMEA § GDP in Europe… Russia, Mid-East, Africa expansion § Profit turnaround…execution u Asia § High va
Slide 19: Global Synergies
Global Synergies Brink’s Operations Ronald F. Rokosz Executive Vice President Chief Operating Officer Brink’s, Incorporated
Slide 20: Global Footprint - We Cover the World
NORTH AMERICA LATIN AMERICA EMEA ASIA PACIFIC Global Footprint - We Cover the World 2009 Revenue $2.9B* Employees: 12,000 Revenue: $894 million Employees: 22,500 Revenue $667 million* Employees: 21,300 Revenue: $1.3 billion Employees: 3,600 Revenue: $79 million *2009 revenues are non-GAAP. See Appen
Slide 21: Our Vision
...to be the worldwide leader i n secure logistics and security s olutions. Our vision is... Our Vision
Slide 22: Our Focus
Our Focus u Core Business Maximization u Solutions Delivery u Long-Term Growth
Slide 23: Country Level Operations
Country Level Operations How We Operate Solutions, Adjacency and Product Dev. Productivity People Development Security Global Service Business Global Process Expertise Global Strategy… Decentralized Operations… Global Process Expertise
Slide 24: Our Fundamental Values
PEOPLE Commitment to employees Teamwork and respect Safety and security Operational excellence TRUST Ethics and integrity Corporate citizenship Reliability INNOVATION Market-driven culture Technology focus Disciplined risk-taking Our Fundamental Values People • Trust • Innovation
Slide 25: Brink's Global Security
Brink’s Global Security Michael F. Beech Vice President - Security Brink’s, Incorporated
Slide 26: Security Is Everyone's Responsibility
SECURITY Is Everyone's Responsibility u Get Our People Home Safe Every Night u Mitigate Our Risk u Strengthen Our Brand u Improve Profits It’s a Dangerous World
Slide 27: Under Cover of Darkness…
Under Cover of Darkness… Security Video
Slide 28: …In Broad Daylight
Security Video …In Broad Daylight
Slide 29: Branch Invasion
Security Video Branch Invasion
Slide 30: The Brink's Difference
The Brink's Difference u Polar Mist Sunk u $16 M lost u $13 M in salvage and legal expenses
Slide 31: Investing in Security
Security Video Investing in Security
Slide 32: Major Insurance Industry Claims $232 Million
Major Insurance Industry Claims $232 Million* * January 2007 - July 2010 The Brink's Difference $0 Attributed to Brink’s Source: London Insurance Market
Slide 33: Global Expertise… Local Execution
Global Expertise… Local Execution Get Our People Home Safe Every Night Mitigate Our Risk Strengthen Our Brand Improve Profits u Train u Develop Directives, Regulations, Process and Procedures u Assess Risk, Investigate, and Audit u Collaborate - lessons learned and best practices
Slide 34: Final Thought - The Brink's Difference
Final Thought - The Brink’s Difference “A dollar not lost is a dollar earned.”
Slide 35: Brink's Global Services
Brink’s Global Services Business Overview Amit Zukerman President - BGS
Slide 36: Around the World, Around the Clock
Around the World, Around the Clock Airports around the world Cities served worldwide 5,000 Subcontractors worldwide 1,500 High value shipments per day 1,800 Dedicated staff worldwide Customers served worldwide 7,000 Daily flights Metric tons of valuables shipped per year 25,000
Slide 37: Global Footprint — A Network Unmatched by Competitors
IIIBRINKS Global Footprint — We Cover the World A Network Unmatched by Competitors B horth Americ B curope / Middle East/ Aiea Brine samy BRINK’S Approved Gas BRINK’S Ae Bahrain Subcontractors iat Approved United States age China igium yon Namibia Subcontractors ‘Of America Pets woit indorra Hong Ko
Slide 38: Diversified Portfolio of Valuables
Diversified Portfolio of Valuables
Slide 39: Demonstrated Growth in Global Services
Demonstrated Growth in Global Services Regional Revenue Strong Growth at Accretive Margins Revenue
Slide 40: The Brink's Difference: Added Value
Provider Single Service Provider Door to Door Low Cost Speed Supply Chain Logistics Risk Management Insurance coverage Physical Security Postal Services Courier Freight Forwarder Third Party Logistics (3PL) Secure Logistics The Brink’s Difference: Added Value
Slide 41: Secure Logistic Supply Chain
Packing Storage Pickup Inventory Management Call-off centre Pick/Pack Forwarding Customs clearance Flight Consolidation Delivery to Airline Ready for Carriage Airline Handling Flight Hub Handling Deconsolidation Airline Handling Storage Processing Inventory Management Replenishment Delivery/ Distrib
Slide 42: Adding Value at Every Stage
Adding Value at Every Stage Secure, Efficient and Cost Effective
Slide 43: BGS Summary
BGS Summary u Market leader u Global footprint u Diverse portfolio u Consistent record of growth u Bright Future
Slide 44: Brink's Asia Pacific Business Overview
Ronald F. Rokosz Executive Vice President Chief Operating Officer Brink’s , Incorporated Brink’s Asia Pacific Business Overview
Slide 45: Scope of Operations - Asia Pacific
Scope of Operations - Asia Pacific India China Australia Japan Hong Kong Thailand Taiwan Singapore New Zealand Brunei
Slide 46: Asia Pacific Financial Performance
Asia Pacific Financial Performance Profitability ~ 9% Margins u 50 bps Improvement Per Year u Low Teens Target Profitability ~ 11% Margins Solid Growth Global Recession… Slower Growth + Acquisitions Revenue Acquisitions Drive Growth ($ millions)
Slide 47: How We Will Grow — Asia Pacific
How We Will Grow — Asia Pacific @ =~ Continued Global Services Growth @ = Accelerate India & China Growth 5 Expand and Globalize Commercial Security a7
Slide 48: Brink's Europe, Middle East, Africa Business Overview
Michael J. Cazer President - Brink’s Europe Business Overview Brink’s Europe, Middle East, Africa
Slide 49: Scope of Operations - EMEA
Turkey Russia Scope of Operations - EMEA France Greece Neth . Belg . Ireland Poland Germany Madagascar Mauritius Hungary Israel Bahrain Italy Liechtenstein Monaco Reunion South Africa Botswana Switzerland Ukraine U.A.E. U.K . Namibia Norway Romania Qatar Saudi Arabia Sweden Tajikistan Tanzania Zambi
Slide 50: Threat Environment
Threat Environment u Wide range of threat levels u Security and weapons regulations vary by country u Tailored approach bolstered by Brink’s security best practices
Slide 51: EMEA 2009 Revenue - $1.3 Billion
EMEA 2009 Revenue - $1.3 Billion
Slide 52: Products and Services
Products and Services u Core § Cash in Transit (CIT) § ATM Services u High Value Services § Money Processing § CompuSafe ® Service § Air Courier/Global Services § Precious Metals § Domestic Courier § Cash Handling & Back Office Outsourcing u Security Services § Monitoring § High-end Guarding Solutio
Slide 53: EMEA Financial Performance
EMEA Financial Performance Profitability ~5% Margins Profitability ~2% Margins u Expanding +50-75 bps Per Year u Target ~7% Margins Strong Growth Global Recession… Dispositions + Weakening Currency Revenue ($ millions)
Slide 54: How We Will Fix and Grow EMEA
How We Will Fix and Grow EMEA Fix underperforming countries Invest in emerging markets Reinforce strong operations with customer solutions
Slide 55: Summary - Europe, Middle East and Africa
Summary - Europe, Middle East and Africa u Sluggish economies and banks & retailers under pressure u Increasing outsourcing by banks and central banks u Progress in fixing underperforming countires u Growth in solutions and developing markets u Outlook § Revenue Growth: § Margin Growth
Slide 56: Brink's North America Business Overview
Business Overview Brink’s North America Lawrence F. Rodo President - Brink’s U.S. & EVP - North America
Slide 57: Scope of Operations - North America
Scope of Operations - North America 2009 Revenue $894 M
Slide 58: Threat Environment
Threat Environment u Attacks increasing for industry u Attacks on Brink’s are down u Training and tactics are the difference
Slide 59: North America 2009 Revenue - $894 Million
North America 2009 Revenue - $894 Million
Slide 60: Products and Services
u Core § Cash in Transit (CIT) § ATM Maintenance u High Value Services § Currency Processing § CompuSafe ® Service § Coin Processing § Air Courier/Global Services § Check Imaging § Diamonds and Jewelry § Precious Metals § Virtual Vault § Document Destruction § Web Information Tools § Track and Trace
Slide 61: North America Financial Performance
North America Financial Performance Profitability ~ 7% Margins Profitability ~ 5% Margins u 50 bps Per Year Improvement u 10% Long-Term Target Solid Growth Global Recession Historical Growth Rate with Improved Margins ($ millions) Revenue
Slide 62: How We Will Grow - North America
How We Will Grow - North America ¿ Maximize the core ¡ Reduce cost, improve processes ¡ Lean principles ¿ Deliver solutions ¡ CompuSafe® Service ¡ Retail back office automation ¡ Virtual Vault ¡ Transaction processing
Slide 63: Summary - North America
Summary - North America u Market leader with broad footprint u High-risk environment u Stay disciplined, focus on service and security u Reduce costs u Provide solutions
Slide 64: Brink's Latin America Business Overview
Brink’s Latin America Thomas C. Maffey VP - Latin America Business Overview
Slide 65: Scope of Operations - Latin America
Brazil Scope of Operations - Latin America 2009 Revenue * $667 M * Revenues are non-GAAP. See reconciliation to GAAP in Appendix. Argentina Chile Venezuela Colombia Panama Puerto Rico Bolivia
Slide 66: Threat Environment
Threat Environment u More violent u Increasingly sophisticated u Customers value security
Slide 67: Latin America 2009 Revenue - $667 Million
Latin America 2009 Revenue - $667 Million* Customers Line of Business * Revenues are non-GAAP. See reconciliation to GAAP in Appendix.
Slide 68: Products and Services
Products and Services u Core § Cash in Transit (CIT) / ATM u High Value Services § Money Processing § CompuSafe ® Service § Air Courier/Global Services § Check Imaging § Secure Cargo § Precious Metals § Domestic Courier § Back office and Treasury § Electronic Payment/Collections u Security Services
Slide 69: Latin America Financial Performance
Latin America Financial Performance Profitability ~ 11% Margins Profitability ~ 14% Margins Sustained Profitability Strong Growth Global Recession… Still Growing Continued Growth… With Margins Revenue ($ millions) * Revenues and profitability are non-GAAP. See reconciliation to GAAP in Appendix.
Slide 70: How We Will Grow - Latin America
How We Will Grow - Latin America u Acquisitions to strengthen and expand footprint u Develop Supply Chain Solutions u Commercial Security
Slide 71: Summary - Latin America
Summary - Latin America u Growing economies u High-risk threat environment u Continued Strong Revenue and Profit Growth
Slide 72: The Brink's Company
The Brink’s Company Michael T. Dan Chairman, President and Chief Executive Officer
Slide 73: Long-Term Outlook
Long-Term Outlook u North America § Solutions focus… GDP growth § Productivity…10% profitability u Latin America § Strong growth… solutions… CIT… inflation… adjacency expansion § Sustain margins u EMEA § GDP in Europe… Russia, Mid-East, Africa expansion § Profit turnaround…execution u Asia § High va
Slide 74: The Brink's Company
The Brink’s Company Dallas, Texas October 7, 2010
Slide 75: Appendix
Appendix
Slide 76: Glossary
Glossary CFOA Cash Flow from Operating Activities GAAP Generally Accepted Accounting Principles in the United States Organic Growth Growth excluding changes for acquired or disposed businesses, and changes due to fluctuations of currency exchange rates
Slide 77: Revenue Reconciliation to GAAP
Revenue ($ millions) Reconciliation to GAAP Revenue ($ million 2000 2008 2009 Non-GAAP Revenues $1,444 2,990 2,897 Results in Venezuela under GAAP are _ 174 238 translated using official currency exchange rate; under non-GAAP, translated using parallel market currency exchange rate (a) ______ _____
Slide 78: Reconciliation to GAAP
Reconciliation to GAAP Segment Operating Profit ($ millions) 2000 2008 2009 Non-GAAP Segment Operating Profit $110 223 175 Results in Venezuela under GAAP are - 49 39 translated using official currency exchange rate; under non-GAAP, translated using parallel market currency exchange rate (a) Non-Seg
Slide 79: Reconciliation to GAAP
Reconciliation to GAAP 2000 2008 2009 2000-08 2009-10(b) Non-GAAP $342 627 667 11% 14% Results in Venezuela under GAAP are _ 174 238 1 _ translated using official currency exchange rate; under non-GAAP, translated using parallel market currency exchange rate (a) ____ ____ ____ ____ ____< /font> GAAP
Slide 80: Reconciliation to GAAP
0; Reconciliation to GAAP Cash Flow from Operating Activities (“CFOA”) ($ millions) 2007 2008 2009 Non-GAAP CFOA before Legacy Liabilities $283 263 246 Excluded Cash Flows (a): Discontinued Operations 192 173 24 U. S. Pensions Contributions (14) (2) (97) Black Lung Contributions (7) (7) (8) Curren
Slide 81: Cash Flows - GAAP
(47) Cash Flows - GAAP ($ millions) 2007 2008 2009 CFOA $454 427 195 Investing Activities (318) (360) (241) Financing Activities (85) - ____ ____ ____ Total $51 67 93 Source: 2009 Form 10-K