Slide 1: Third Quarter 2015 Earnings Call
October 30, 2015 Third Quarter 2015 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 2015 Earnings Call
October 30, 2015 Third Quarter 2015 Earnings Call Secure Logistics. Worldwide.
Slide 4: Third-Quarter Summary and Outlook (non-GAAP)
4 Third-Quarter Summary and Outlook (non-GAAP) EPS $.37 vs $.12 • Revenue down 13% on currency translation (3% organic growth) • Lower corporate expense; higher profits in Argentina, Mexico and Chile • Lower profits in U.S 2015 Guidance • EPS $1.40 - $1.50 • Revenue $3 billion • Operating margin 5.0
Slide 5: Outlook: Strong Operating Improvement in 2015 & 2016
5 124 150 - 160 200-2203.7% 5.0% - 5.3% 6.7% - 7.3% 2014 2015 Est. 2016 Est. -20 -15 -10 -5 0 5 10 -25 25 75 125 175 225 275 2014 2015 Est. 2016 Est. Note: See reconciliation to GAAP results in Appendix Outlook: Strong Operating Improvement in 2015 & 2016 Non-GAAP Operating Profit ($MM) Operating Ma
Slide 6: Outlook: Strong Operating Improvement in 2015 & 2016
6 Outlook: Strong Operating Improvement in 2015 & 2016 Note: See reconciliation to GAAP results in Appendix. $1.01 $2.90 - $3.10 $2.00 - $2.20$0.99 - $1.09 $0.90 - $1.00 $(0.60) $(0.30) 2014 2015 2016 Sub-Total 2015 2016 2016 Target Operations 2015 2016 Currency 2015 2016
Slide 7: Our Strategy
7 Our Strategy Expand Our Offerings Transform from a transactional business model to a value-based secure supply chain management company. Drive Efficiency Implement Lean processes, right-size cost structure, and centralize support to deliver the most customer value while consuming fewer resources.
Slide 8: Brink's Strategy in Action
8 Brink’s Strategy in Action • U.S - Continue to improve quality and customer satisfaction, accelerate productivity and efficiency efforts; achieve 6% margin in 2016 • Transform U.S. fleet to optimize vehicles to routes • Mexico - Sustain profit momentum; achieve 10% margin in 2016 • France - Delive
Slide 9: A Strong Foundation for Value Creation
9 • Leadership position in industry with attractive profit potential • Number 1 or 2 in key markets • Global footprint…in a dangerous world with increasing security needs • Strong brand and reputation • Cash in circulation is growing in most economies • Brink’s Global Services – leveraging our globa
Slide 10: Third Quarter 2015
Third Quarter 2015
Slide 11: Summary of 3Q15 Non-GAAP Results
11 Summary of 3Q15 Non-GAAP Results $847 $740 3Q14 3Q15 $0.12 $0.37 3Q14 3Q15 EPSRevenue Note: See reconciliation to GAAP results in Appendix. Organic Growth 3% Currency (16%) $21 $37 3Q14 3Q15 Operating Profit Margin 2.5% 5.0% ($ Millions, except per share amounts)
Slide 12: Non-GAAP EPS: 3Q14 Versus 3Q15
12 Note: See reconciliation to GAAP results in Appendix Non-GAAP EPS: 3Q14 Versus 3Q15 Strong Operating Results Offset Currency Impact Organic Currency 1 2 3 4 $0.12 $0.45 ($0.20) $0.37 3Q14 3Q15
Slide 13: Segment Results
Segment Results
Slide 14: U.S. Results
14 $176 $180 $182 $190 $184 $184 $183 0% 1% 3% 7% 4% 2% 1% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 U.S. Results ($ Millions, except %) (%)($) 3Q15 Comments Expect 3% - 4% full-year margin Cost actions and volume growth offset by incremental costs to manage new business and customer service levels 3Q1
Slide 15: Mexico: Profits Improve Despite Revenue Decline
15 $3.7 $(0.9) $(0.4) $7.2 $7.9 $4.5 $3.4 3.7% (0.9)% (0.4)% 7.6% 9.2% 5.3% 4.2% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 $100 $98 $95 $95 $86 $85 $80 1% (8)% (7)% (4)% (3)% 2% 6% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Mexico: Profits Improve Despite Revenue Decline ($ Millions, except %) Revenue ($) 3Q15 Com
Slide 16: 3Q15 Results: France, Brazil & Canada
16 3Q15 Results: France, Brazil & Canada $111 $13.7 Revenue Op Profit France No organic revenue growth on slight volume decline 3Q profit historically the strongest of the year Repositioning business to focus on customer cash supply chain Brazil Volumes decreasing vs. 2014 Price increase t
Slide 17: Global Markets: Strong Performance Despite Currency Headwinds
17 Global Markets: Strong Performance Despite Currency Headwinds Revenue decline in Germany, Ireland and Greece Continued solid margins Strong organic revenue growth in Argentina offset by currency More than half of segment profit driven by Argentina Strong growth and margins across the re
Slide 18: Cash Flow, Capital Investment and Net Debt
18 Cash Flow, Capital Investment and Net Debt $136 $88 YTD 2014 YTD 2015 $319 $334 12/31/2014 9/30/2015 Non-GAAP Net Debt Non-GAAP CFOA Note: See reconciliation to GAAP results in Appendix. $86 $68 YTD 2014 YTD 2015 Capital Expenditures & Capital Leases(Excluding 2014 pension payments) ($ Millions)
Slide 19: Outlook
Outlook
Slide 20: 2015 Non-GAAP EPS Outlook Reflects Strong Operations
20 Note: See reconciliation to GAAP results in Appendix 2015 Non-GAAP EPS Outlook Reflects Strong Operations Operations Currency 1 2 3 4 $1.01 $0.99 - $1.01 ($0.60) $1.40 - $1.50 2014 2015 Outlook 9-Months Actuals $0.43 1.01 (0.40) $1.04 4Q Actual/Estimate 0.58 (0.02) – 0.08 (0.20) 0.36 – .46 $1.01
Slide 21: Summary of 2015 Non-GAAP Forecast
21 Summary of 2015 Non-GAAP Forecast 2014 2015 2016 $1.01 $1.40 - $1.50 $2.00 - $2.20 2014 2015 2016 EPSRevenue Note: See reconciliation to GAAP results in Appendix. Organic Growth 3% 5% Currency (14%) (5%) $124 $150 - $160 $200 - $220 2014 2015 2016 Operating Profit Margin 3.7% 5.0% - 5.3% 6.7% - 7
Slide 22: Third-Quarter 2015 Earnings Call
October 30, 2015 Third-Quarter 2015 Earnings Call Secure Logistics. Worldwide.
Slide 23: Appendix
Appendix
Slide 24: Non-GAAP 2015 & 2016 Outlook
24 Note: See reconciliation to GAAP results in Appendix a) Attributable to Brink’s Non-GAAP 2015 & 2016 Outlook 2015 Outlook2014 2016 Outlook Revenue $3,351 ~$3,000 ~$3,000 Op Profit 124 150 - 160 200 - 220 Interest/Other Income (22) (17) Taxes (47) (56 - 60) Noncontrolling interests (6) (7-8) Incom
Slide 25: Brink's Historical Non-GAAP Results
25 Brink’s Historical Non-GAAP Results ($ Millions, except per share amounts) (%)($) Margin Rate Operating Profit EPS $21 $24 $21 $59 $41 $31 $37 2.5% 2.9% 2.5% 6.9% 5.4% 4.1% 5.0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 $0.15 $0.16 $0.12 $0.58 $0.41 $0.27 $0.37 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Note: S
Slide 26: Capex Spend
26 Capex Spend(a) ($ Millions) a) Excluding Venezuela $207 $176 $169 $143 $130 - $140 1.7 1.3 1.1 1.0 ~1.0 0.00. 10.02. 30.04. 5 0.06. 70.08. 90.10. 1 0.12. 30.14. 50.16. 7 0.18. 90.20. 10.22. 3 0.24. 50.26. 70.28. 9 0.30. 10.32. 30.34. 5 0.36. 70.38. 90.40. 1 0.42. 30.44. 50.46. 7 0.48. 90.50. 10.5
Slide 27: Legacy Liabilities – Underfunding at 12/31/14
27 Legacy Liabilities – Underfunding at 12/31/14 ($ Millions) Primary U.S. Pension UMWA $(263) $(113) $(108) 2012 2013 2014 Primary U.S. Pension $(257) $(142) $(197) 2012 2013 2014 UMWA
Slide 28: Estimated Cash Payments: Primary U.S. Pension and UMWA
28 Estimated Cash Payments: $0 to Primary U.S. Pension $0 to UMWA until 2032 ($ Millions) Payments to Primary U.S. Pension Payments to UMWA • Prepaid 2015 and 2016 pension payments in 3Q14 − Accelerates de-risking of invested asset allocation − Reduces PBGC premiums (current borrowing costs are lowe
Slide 29: Segment Results and Non-GAAP Results Reconciled to GAAP
Segment Results and Non-GAAP Results Reconciled to GAAP
Slide 30: Other Items Not Allocated to Segments
30 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 31: Other Items Not Allocated to Segments
31 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) FX devaluation in Venezuela The rate we use to remeasure operations in Venezuela declined significantly in February 2015 (from 52 to 170 bolivars to the U.S. dollar) and in
Slide 32: Other Items Not Allocated to Segments
32 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) 2015 Reorganization and Restructuring Brink's initiated an additional restructuring of its business in the third quarter of 2015. We recognized $2.0 million in third quarte
Slide 33: Non-GAAP Reconciled to GAAP
33 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 34 for footnote explanations. 2014 2015 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q Nine M
Slide 34: Non-GAAP Reconciled to GAAP
34 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 30-32 for pretax amounts and details. Other Items Not Allocated To
Slide 35: Non-GAAP Reconciliation – Cash Flows
35 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 36: Non-GAAP Reconciliation – Net Debt
36 Non-GAAP Reconciliation – Net Debt The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Net Debt (Unaudited) (In millions) (a) 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 gener
Slide 37: Non-GAAP Reconciliation – Other
37 Non-GAAP Reconciliation – Other The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Other Amounts (Unaudited) (In millions) (a) 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 gen