Slide 1: Third Quarter 2016 Earnings Call
October 26, 2016 Third Quarter 2016 Earnings Call Secure Logistics. Worldwide. Exhibit 99.2
Slide 2: Safe Harbor Statement & Non-GAAP Results
2 Safe Harbor Statement & 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: Third Quarter 2016 Earnings Call
October 26, 2016 Third Quarter 2016 Earnings Call Secure Logistics. Worldwide.
Slide 4: CEO Overview
4 • EPS $.64 vs $.40, up 60% • 5% organic revenue growth • Strong profit growth in Brazil, Latin America segment • U.S. profitable CEO Overview Note: See reconciliation to GAAP results in Appendix Third-Quarter 2016 Non-GAAP Results • EPS $1.95 - $2.10 (vs $1.69 in 2015) • 5% organic revenue growth
Slide 5: Global Operational Assessment
5 • Visited operations in U.S., LatAm, Canada, Europe • Comprehensive assessment of management, markets, competitors, customers, assets, equipment, labor relations, etc. • Strong global operations & leadership • Dedicated employees, positive cultures • Powerful brand • Strong customer base and relat
Slide 6: Restore Investor Confidence
6 • Achieve 2016 targets • Complete strategic review and assessment • Develop 3-year strategic plan with performance targets and metrics • Communicate plan at Investor Day • Execute and win Next Steps Restore Investor Confidence
Slide 7: Execute on Value Creation Opportunities
7 • Accelerate Profitable Growth (APG) • Organic growth, cost controls • Potential accretive acquisitions • Close the Gap (CTG) • Achieve operational excellence, exceed customer service metrics • Close or surpass the margin gap with competitors • Introduce Differentiated Services (IDS) • End-to-end
Slide 8: A Clear Path to Value Creation
8 A Clear Path to Value Creation* Incremental Improvements Breakthrough Initiatives Sales & New Business Branch Standardization Lean Technology Investments Accretive Acquisitions OtherFleet One-Person Vehicles Optimize Network Current Margin Target Margin * For illustrative purposes only
Slide 9: Financial Review
Financial Review Secure Logistics. Worldwide.
Slide 10: Non-GAAP Revenue: 2016 vs 2015
10 $740 $701 $735 ($29) ($10) $34 Non-GAAP Revenue: 2016 vs 2015 ($ Millions) Third-Quarter Nine Months (4%) 5% 4%(8%) Organic Adjusted 2015 RevenueCurrency Acq/Disp 2015 Revenue 2016 Revenue Note: See reconciliation to GAAP results in Appendix (1%)% Change % Change (1%) $2,244 ($169) $2,140$94$2,04
Slide 11: Non-GAAP Operating Profit: 2016 vs 2015
11 Non-GAAP Operating Profit: 2016 vs 2015 ($ Millions) Third-Quarter Organic Adjusted 2015 Op ProfitCurrency Acq/Disp 2015 Op Profit 2016 Op Profit $37 $37 $61 ($1) $1 $24 5.0% 8.3% Note: See reconciliation to GAAP results in Appendix OP Margin Nine Months 6.1%4.8%OP Margin $108 ($15) $130$33$96$3
Slide 12: Non-GAAP Results – Third Quarter
12 Non-GAAP Results – Third Quarter ($ Millions, except EPS) Net Interest Taxes Op Profit Income from Continuing Ops D&A Minority Interest Adjusted EBITDA Interest Exp. & Taxes ($22) ($2) $33 $32 $27 $92 ($5)$61 EPS 2016 $0.64 2015 $0.40 Note: See reconciliation to GAAP results in Appendix ($1) ($10
Slide 13: Non-GAAP Results – Nine Months
13 Non-GAAP Results – Nine Months ($ Millions, except EPS) Nine Months 2016 $130 ($14) ($45) ($4) $66 $97 $60 $224 Net Interest TaxesOp Profit Income from Continuing Ops D&A Minority Interest Interest Exp. &Taxes Note: See reconciliation to GAAP results in Appendix Adjusted EBITDA ($1) ($10)$22 $10
Slide 14: Capital Expenditures
14 Capital Expenditures ($ Millions) Note: See reconciliation to GAAP results in Appendix Depreciation & Amortization $ 147 132 125-135 Reinvestment Ratio 1.0 0.9 ~1.0 Cash 131 97 95-105 Capital Lease 12 19 ~35 Total $ 143 116 130-140 $143 $116 $130 - $140 2014 2015 2016 Outlook Compusafe Facility E
Slide 15: Debt and Leverage
15 $272 $291 $306 2014 2015 Sep 2016 Debt and Leverage ($ Millions) Leverage Ratio* 1.2 0.9 1.0 Note: No cash payments expected until 2020 for primary U.S. pension plan and 2027 for UMWA based on 12/31/15 actuarial assumptions $318 $273 $296 $148 $158 $183 $467 $431 $479 Dec 2014 Dec 2015 Sep 2016 C
Slide 16: Adjusted EBITDA
16 $304 $306 Adjusted EBITDA ($ Millions, except share price) $167 Adjusted EBITDA Multiple Trailing 12 Months Adjusted EBITDA Multiple $178 $138 $128 9.8%Margin 10.6% Multiple 5.4 7.0 Note: See reconciliation to GAAP results in Appendix *Trailing 12 months as of 6/30/16 Source: Publicly available p
Slide 17: Continued Improvement Expected in 2016 & Beyond
17 124 157 185 - 200 3.7% 5.3% 6.4% - 6.9% 2014 2015 2016 Outlook -20 -15 -10 -5 0 5 10 -25 25 75 125 175 225 275 2014 2015 2016 Outlook Note: See reconciliation to GAAP results in Appendix Continued Improvement Expected in 2016 & Beyond Non-GAAP Operating Profit Margin 2016 Non-GAAP Outlook Affirme
Slide 18: Third Quarter 2016 Earnings Call
October 26, 2016 Third Quarter 2016 Earnings Call Secure Logistics. Worldwide.
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP 2016 Outlook and Key Metrics
20 Note: See reconciliation to GAAP results on slides 29, 30, 32, 35-37 (a) Attributable to Brink’s Non-GAAP 2016 Outlook 20152014 2016 Outlook Revenue $3,351 $2,977 ~$2,900 Op profit 124 157 185 – 200 Interest/Other Income (22) (15) (17) Taxes (47) (52) (66– 71) Noncontrolling interests (6) (5) (5
Slide 21: Brink's Historical Non-GAAP Results
21 $21 $24 $21 $59 $41 $31 $37 $49 $31 $38 $61 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 $0.15 $0.16 $0.12 $0.58 $0.44 $0.30 $0.40 $0.55 $0.30 $0.38 $0.64 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Brink’s Historical Non-GAAP Results ($ Millions, except per share amounts) ($
Slide 22: Capex Spend
22 Capex Spend(a) ($ Millions, except ratio) (a) Excluding Venezuela $176 $169 $143 $116 $130 - $140 1.3 1.1 1.0 0.9 ~1.0 0.00. 10.02. 30.04. 5 0.06. 70.08. 90.10. 1 0.12. 30.14. 50.16. 7 0.18. 90.20. 10.22. 3 0.24. 50.26. 70.28. 9 0.30. 10.32. 30.34. 5 0.36. 70.38. 90.40. 1 0.42. 30.44. 50.46. 7 0.
Slide 23: Legacy Liabilities – Underfunding at December
23 Legacy Liabilities – Underfunding at December 31 ($ Millions) Primary U.S. Pension UMWA ($113) ($108) ($114) 2013 2014 2015 Primary U.S. Pension ($142) ($197) ($206) 2013 2014 2015 UMWA
Slide 24: Estimated Cash Payments to Pension and UMWA
24 Estimated Cash Payments: $0 to Primary U.S. Pension until 2020 $0 to UMWA until 2027 ($ Millions) Payments to Primary U.S. Pension Payments to UMWA • Prepaid 2015 and 2016 pension payments in 3Q14 − Accelerated de-risking of invested asset allocation − Reduced PBGC premiums (current borrowing cos
Slide 25: Segment Results and Non-GAAP Results Reconciled to GAAP
Segment Results and Non-GAAP Results Reconciled to GAAP
Slide 26: Other Items Not Allocated to Segments
26 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) Brink’s measures its segment results before income and expenses for corporate activities and for certain other items. A summary of the other items not allocat
Slide 27: Other Items Not Allocated to Segments – Venezuela
27 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) Venezuela operations We have excluded from our segment results all of our Venezuela operating results, including expenses related to currency devaluations of $11.2 million
Slide 28: Other Items Not Allocated to Segments – Acquisitions and Dispositions
28 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) Acquisitions and dispositions dispositions Certain acquisition and disposition items that are not considered part of the ongoing activities of the business and are special
Slide 29: Non-GAAP Reconciled to GAAP
29 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Amounts may not add due to rounding. See slide 30 for footnote explanations. 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Nine Months Reve
Slide 30: Non-GAAP Reconciled to GAAP
30 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) a) See “Other Items Not Allocated To Segments” on slides 26-28 for pretax amounts and details. Other Items Not Allocated To
Slide 31: Non-GAAP Reconciled to GAAP
31 Non-GAAP Reconciled to GAAP The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Amounts may not add due to rounding. See slide 30 for footnote explanations. YTD'15 YTD'16 Pre-tax Tax Effective tax rate Pr
Slide 32: Non-GAAP Reconciliation – Outlook
32 Non-GAAP Reconciliation – Outlook The Brink’s Company and subsidiaries Reconciliation of Non-GAAP to GAAP 2016 Outlook (Unaudited) (In millions) Amounts may not add due to rounding. a) Non-GAAP outlook excludes the impacts of Venezuela operations and acquisitions and dispositions. b) Non-GAAP out
Slide 33: Non-GAAP Reconciliation – Cash Flows
33 Non-GAAP Reconciliation – Cash Flows The Brink’s Company and subsidiaries Non-GAAP Reconciliations –Cash Flow (Unaudited) (In millions) a) To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure Cash Management Services opera
Slide 34: Non-GAAP Reconciliation – Net Debt
34 Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Net Debt (Unaudited) (In millions) a) Amount as of September 30, 2016 excludes $13.5 million related to cash borrowed under lending arrangements used in the process of managing customer cash supply
Slide 35: Non-GAAP Reconciliation – Items Impacting Adjusted EBITDA
35 Non-GAAP Reconciliation – Items Impacting Adjusted EBITDA The Brink’s Company and subsidiaries Non-GAAP Reconcilliation Adjusted EBITDA (Unaudited) (In millions) a) Non-GAAP amounts exclude the impact of "Other Items Not Allocated to Segments" on the respective line items on the consolidated stat
Slide 36: Non-GAAP Reconciliation – 2014
36 Non-GAAP Reconciliation – 2014 The Brink’s Company and subsidiaries Non-GAAP Reconciliation - 2014 (Unaudited) (In millions) Amounts may not add due to rounding. See slide 37 for footnote explanations. 1Q 2Q 3Q 4Q Full Year Revenues: Non-GAAP 818.3$ 836.7 847.4 848.1 3,350.5 Other items not alloc
Slide 37: Non-GAAP Reconciliation – 2014
37 Non-GAAP Reconciliation – 2014 The Brink’s Company and subsidiaries Non-GAAP Reconciliation – 2014 (Unaudited) (In millions) a) Refer to the 2015 Fourth Quarter press release exhibit 99.1 on Form 8-K filed February 4, 2016 for details b) Non-GAAP income from continuing operations has been adjuste
Slide 38: Non-GAAP Reconciliation – Other
38 Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Other Amounts (Unaudited) (In millions) Amounts Used to Calculate Reinvestment Ratio Fixed Assets Acquired Full Year Nine Months 2012 2013 2014 2015 2015 2016 Capital expenditures - GAAP 170.8 172.9 13