Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Investor Presentation (March 2011)
28 slides from Brinks Company (the)'s investor presentation, Mar 11, 2011
Slide 1: The Brink's Company Investor Overview
The Brink’s Company Investor Overview NYSE:BCO March 2011 Exhibit 99-1
Slide 2: 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 3: Today's Presentation
Today’s Presentation ¢ Business Overview ¢ Growth Opportunities ¢ Creating Value for Investors
Slide 4: Investment Highlights
¢ Premier Brand ¢ Global Footprint ¢ Improving Market Fundamentals ¢ Economic recovery ¢ Cash growing worldwide ¢ Interest rates ¢ Compelling Growth Opportunities ¢ Maximize profits in developed markets ¢ Expand in emerging markets ¢ Invest in solutions and adjacent markets Investment Highlights
Slide 5: World's Largest Secure Logistics Company
¢ World’s Largest Secure Logistics Company ¢ Premier global brand ¢ Customers in more than 100 countries ¢ ~70,000 employees; 1,000 branches and 13,000 vehicles ¢ 2010 Revenue - $3.1 billion ¢ Global Cash-In-Transit (CIT) network supports growth in High-Value Services Company Snapshot 2010 Revenue (
Slide 6: Diverse Business Lines: CIT Drives High-Value Services
Diverse Business Lines : CIT Drives High-Value Services ¢ Global Infrastructure High-Value Services ¢ Global Services – Secure long-distance transport of valuables ¢ Cash Logistics – Money processing – Virtual vaulting – CompuSafe® Service ¢ Adjacencies – Payment Services – Commercial Security ¢ Gua
Slide 7: High-Value Services…High-Margin Solutions
High-Value Services…High-Margin Solutions CIT Footprint Supports High-Value Services ¢ Global Services ¢ Secure transport of valuables over long distances ¢ Diamonds, jewelry, banknotes, precious metals ¢ 7000 Customers, 5000 Cities, 1500 daily shipments ¢ Cash Logistics ¢ Money Processing ¢ Vaultin
Slide 8: Global Leader…Global Growth Strategy
¢ Maximize profits in developed markets ¢ EMEA, North America ¢ Invest in growth opportunities ¢ Emerging markets: BRIC, LATAM, Asia-Pacific ¢ High-Value Services: Global Services, Cash Logistics ¢ Adjacencies: Commercial Security, Payment Processing Global Secure Logistics Market Source: Internal C
Slide 9: Long-Term Goal: Deliver Shareholder Value
Long-Term Goal: Deliver Shareholder Value Organic Revenue 8 - 10% Growth Segment Margin Target Note: Organic revenue growth and segment margin are calculated on Non-GAAP revenue and segment profit. See Appendix for reconciliation to GAAP.
Slide 10: EMEA: Improve Operating Performance
2010 Revenue: $1.2B Region Overview: ¢ 2010: 3% organic growth…low single-digit margin ¢ Diverse competitive, regulatory and threat environments ¢ Customers want outsourced solutions Strategy: ¢ Europe: Maximize CIT profits; increase efficiency; fix underperformers ¢ Invest in High-Value Services an
Slide 11: North America: Maximize CIT…Grow High-Value Services
2010 Revenue: $918M Region Overview: ¢ Market leader ¢ 2010: Organic revenue flat…4.8% margin ¢ Price and volume pressure Strategy: ¢ Maximize CIT profits ─ reduce costs, improve processes ¢ Remain disciplined on price, service and security ¢ Shift mix to High-Value Services North America: Maximize
Slide 12: Latin America: Continued Strong Growth
Region Overview: ¢ Growing economies ¢ High-risk threat environment…customers value security ¢ Growing need to protect product supply chains ¢ 2010: 19% organic growth, profit margin 13% Strategy: ¢ Strengthen and expand footprint ¢ Leverage footprint to grow High-Value Services ¢ Mexico: Increase C
Slide 13: Asia Pacific: Invest and Grow
2010 Revenue: $127M Region Overview: ¢ High-growth, service-driven economies ¢ Varying degrees of banking sophistication, gov’t restrictions ¢ Strong in Hong Kong; growing in China, India, Japan ¢ 2010: 23% organic growth, profits more than doubled Strategy: ¢ Leverage Global Services network ¢ Acce
Slide 14: Financial Strength and Flexibility
14 Financial Strength and Flexibility n Solid Revenue Growth n 8% CAGR 2006-2010, primarily organic n Late 2010 acquisitions added $450 million n Global economies stabilizing and improving n Cash Flow Supports Continued Growth n ~40% of Capex focused on Emerging Markets and High-Value Services (’07
Slide 15: Achieve Targets…Create Shareholder Value
Achieve Targets…Create Shareholder Value 2010 Actual: n 5% organic revenue growth n 7.2% segment margin 2011 Outlook: n Mid-to-high single-digit organic revenue growth n High end of 6.5% to 7.0% segment margin n Includes $450 million of acquisition revenue at breakeven margin Long-Term Targets: n Hi
Slide 16: Investment Highlights
¢ Premier Brand ¢ Global Footprint ¢ Improving Market Fundamentals ¢ Economic recovery ¢ Cash growing worldwide ¢ Interest rates ¢ Compelling Growth Opportunities ¢ Maximize profits in developed markets ¢ Expand in emerging markets ¢ Invest in solutions and adjacent markets Investment Highlights
Slide 17: Appendix
Appendix
Slide 18: Appendix
Appendix Page 5-Year Non-GAAP Revenue Growth 2006 - 2010...................................................... 19 5-Year Non-GAAP Operating Profit........................................................................... 20 Reconciliation to Amounts Reported under GAAP..............................
Slide 19: Non-GAAP Revenue
Non-GAAP Revenue (1) ($MM) (1) Non-GAAP financial information is reconciled to amounts reported under U.S. GAAP on pages 21, 22 & 23. Non-GAAP Revenue Growth
Slide 20: Total Non-GAAP Operating Profit
Segment 172 196 223 175 226 Non-Segment (73) (62) (58) (55) (59) Total 99 134 166 120 167 Total Non-GAAP Operating Profit (1) ($MM) (1) Non-GAAP financial information is reconciled to amounts reported under U.S. GAAP on pages 21, 22 & 23. Non-GAAP Profit Growth Amounts may not add due to rounding
Slide 21: Non-GAAP Results - Reconciled to Amounts Reported under GAAP
Non-GAAP Results - Reconciled to Amounts Reported under GAAP Non-GAAP results described in this presentation are financial measures that are not required by, or presented in accordance with generally accepted accounting principles (“GAAP”). Purpose of Non-GAAP Information The purpose of the non-GAAP
Slide 22: Non-GAAP Results - Reconciled to GAAP (Cont.)
See page 21 for explanation of footnotes Reconciliation Amounts may not add due to rounding Non-GAAP Results - Reconciled to Amounts Reported under GAAP (Cont.)
Slide 23: Non-GAAP Results - Reconciled to GAAP (Cont.)
(In millions) 2010 2009 2008 2007 2006 Non-Segment Reported GAAP Basis $ (63) (46) (43) (62) (73) Adjustments: Venezuela Currency Loss (d) - 23 - - - Acquisition (Gain) Loss (e) 9 (15) - - - Royalty from BHS (f) (5) (7) (1) - - Non-segment asset sales (g) - (10) (13) - - Non-GAAP Basis $ (59) (55) (
Slide 24: Net Debt
December 31, December 31, 2010 2009 Debt: Short-term debt $ 36.5 7.2 Long-term debt 352.7 188.4 Total Debt 389.2 195.6 Cash and cash equivalents 183.0 143.0 Less amounts held by certain Cash Logistics operations (a) (38.5) - Amount available for general corporate purposes 144.5 143.0 Net Debt $ 244.
Slide 25: 2010 Segment Results, GAAP
Organic Acquisitions/ Currency 2009 Change Dispositions (b) (c) 2010 Total Organic Revenues: EMEA $ 1,258 33 (45) (46) 1,200 (5%) 3% Latin America 905 171 52 (250) 877 (3%) 19% Asia Pacific 79 18 25 5 127 61% 23% International 2,241 222 32 (290) 2,204 (2%) 10% North America 894 7 - 17 918 3% 1% Tota
Slide 26: 2010 Segment Results, non-GAAP
(In millions) Organic Acquisitions/ Currency 2009 Change Dispositions (b) (c) 2010 Total Organic Revenues: EMEA $ 1,258 33 (45) (46) 1,200 (5%) 3% Latin America 667 100 52 59 877 32% 15% Asia Pacific 79 18 25 5 127 61% 23% International 2,003 150 32 19 2,204 10% 8% North America 894 7 - 17 918 3% 1%
Slide 27: 2011 Guidance
2011 Guidance Revenue: Mid-to-high single-digit percentage organic growth over 2010 Segment Margin: High end of 6.5% to 7.0% (includes 2010 acquisitions) Amounts may not add due to rounding. (a) Non-GAAP reflects the elimination of royalties from former home security unit in 2010. (b) Amount is the
Slide 28: Legacy Liabilities
Estimated Contributions to U.S. Plans 2011 2012 2013 2014 2015 US Pension $ 0 36 34 30 27 UMWA 0 0 0 0 0 Black Lung/Other 8 7 7 7 6 Total $ 8 43 41 37 33 Legacy Liabilities ($ millions) Under- funding $192 Note: Amounts based on actuarial assumptions at December 31, 2010.