Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Investor Presentation (May 2013)
26 slides from Brinks Company (the)'s investor presentation, May 9, 2013
Slide 1: The Brink's Company Investor Overview
The Brink’s Company Investor Overview NYSE:BCO May 9, 2013 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
Slide 4: Investment Highlights
¢ Premier Brand ¢ Safety, security, service, trust ¢ Global Footprint ¢ Unique operational advantage ¢ Supports high-value Global Services business ¢ Market Fundamentals ¢ Cash growing worldwide ¢ Increased outsourcing ¢ Dangerous world ¢ Economic recovery, interest rates ¢ Growth Opportunities ¢ Ma
Slide 5: Company Snapshot: World's Largest Secure Logistics Company
¢ World’s Largest Secure Logistics Company ¢ 2012 Revenue $3.8 billion ¢ Premier global brand ¢ Customers in more than 100 countries ¢ ~70,000 employees; 1,100 facilities and 13,000 vehicles ¢ Global Cash-In-Transit (CIT) network supports growth in High-Value Services Company Snapshot 2012 Revenue (
Slide 6: Diverse Business Lines: CIT Drives High-Value Services
– Cash, coins, checks and other valuables; ATM services ¢ Global Infrastructure – Supports Global Services and Cash Logistics Diverse Business Lines : CIT Drives High-Value Services High-Value Services ¢ Global Services – Secure long-distance transport of valuables ¢ Cash Logistics – Money processin
Slide 7: High-Value Services…High-Margin Solutions
High-Value Services…High-Margin Solutions CIT Footprint Supports High-Value Services ¢ Global Services ¢ Secure Logistics of valuables over long distances ¢ Diamonds, jewelry, banknotes, precious metals ¢ 12,000 Customers… 5,000 Cities… 1,400 daily shipments ¢ Cash Logistics ¢ Money Processing ¢ Vau
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 ATM Services ¢ Adjacencies: Payment Processing Brink’s Money Payroll Card Global Secure Logistics Market
Slide 9: EMEA: Improve Operating Performance
EMEA: Improve Operating Performance
Slide 10: North America: Maximize CIT…Grow High-Value Services
2012 Revenue: $945M Region Overview: ¢ Market leader ¢ 2012: Organic revenue down… 4.4% margin ¢ Volume and price 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 11: Latin America: Continued Strong Growth
Region Overview: ¢ Growing economies ¢ High-risk threat environment…customers value security ¢ Growing need to protect product supply chains ¢ 2012: 15% organic growth Strategy: ¢ Strengthen and expand footprint ¢ Leverage footprint to grow High-Value Services ¢ Mexico: Increase CIT margins, add Hig
Slide 12: Asia Pacific: Invest and Grow
2012 Revenue: $159M Region Overview: ¢ High-growth, service-driven economies ¢ Varying degrees of banking sophistication, gov’t restrictions ¢ 2012: 7% organic revenue growth Strategy: ¢ Leverage Global Services network ¢ Accelerate China and India growth ¢ Expand commercial security capabilities As
Slide 13: Financial Strength and Flexibility
13 Financial Strength and Flexibility n Solid Revenue Growth Outlook n 5% - 8% organic growth in 2013 n Cash Flow Supports Continued Growth n ~50% of Capex focused on Emerging Markets and High-Value Services (’10 - ’12) n Strong Balance Sheet n Investment grade credit rating n $336 million net debt;
Slide 14: Investment Highlights
¢ Premier Brand ¢ Safety, security, service, trust ¢ Global Footprint ¢ Unique operational advantage ¢ Supports high-value Global Services business ¢ Market Fundamentals ¢ Cash growing worldwide ¢ Increased outsourcing ¢ Dangerous world ¢ Economic recovery, interest rates ¢ Growth Opportunities ¢ Ma
Slide 15: Appendix
Appendix
Slide 16: Appendix
Appendix Page 3-Year Non-GAAP Revenue Growth ......................................................................... 17 3-Year Non-GAAP Operating Profit .......................................................................... 18 Summary of 2013 Revenue and Segment Margin Outlook ................
Slide 17: Non-GAAP Revenue Growth
Non-GAAP Revenue (1) ($MM) (1) Non-GAAP financial information is reconciled to amounts reported under U.S. GAAP on pages 20, 21 & 22. Non-GAAP Revenue Growth
Slide 18: Total Non-GAAP Operating Profit
Segment 247 270 270 Non-Segment (36) (41) (42) Total 210 229 227 Total Non-GAAP Operating Profit (1) ($MM) (1) Non-GAAP financial information is reconciled to amounts reported under U.S. GAAP on pages 20, 21 & 22. Non-GAAP Profit Growth Amounts may not add due to rounding
Slide 19: Summary of 2013 Revenue and Segment Margin Outlook
2012 Estimate 2012 Estimate International 11 % 7 % - 9 % 11 % 7 % - 9 % Total 7 % 5 % - 8 % 7 % 5 % - 8 % International (7) % (3) % - (5) % (7) % (3) % - (5) % North America flat flat flat flat Segment margin International 7.9 % 6.0 % - 7.0 % 7.9 % 7.0 % - 8.0 % Summary of 2013 Revenue and Segment M
Slide 20: Non-GAAP Results - Reconciled to Amounts Reported under GAAP
2012 2011 2010 Sale of real estate in Venezuela $ (7) - - Sale of U.S. Document Destruction business - (7) - Bargain Purchase of Mexican CIT business - (2) (5) Impairment of Cost Method Investment-Mexico - - 14 Other gains/losses on acquisitions/dispositions- Segment (2) - - Other gains/losses on ac
Slide 21: Non-GAAP Results - Reconciled to Amounts Reported under GAAP (Cont.)
See page 20 for explanation of footnotes (1) The amounts presented for Non-GAAP Revenues and Segment Operating Profit have been updated to reflect additional European operations that we expect to exit in 2013. Reconciliation Amounts may not add due to rounding Non-GAAP Results - Reconciled to Amount
Slide 22: Non-GAAP Results - Reconciled to Amounts Reported under GAAP (Cont.)
(In millions) 2012 2011 2010 Non-Segment Reported GAAP Basis $ (89) (60) (63) Adjustments: Gains & Losses on Acquisitions and Asset Dispositions (b) (1) (10) 9 CEO Retirement cost (d) - 4 - U.S. Retirement Plans (e) 47 25 23 Royalty from BHS (g) - - (5) Non-GAAP Basis $ (42) (41) (36) Total Operatin
Slide 23: Net Debt
March 31, December 31, 2013 2012 Debt: Short-term $ 71.1 26.7 Long-term 438.6 362.6 Total Debt 509.7 389.3 Cash and cash equivalents 234.8 201.7 Less amounts held by Cash Management Services operations (a) (60.6) (44.0) Cash and cash equivalents available for general corporate purposes 174.2 157.7 N
Slide 24: 2012 Segment Results, GAAP
Organic Acquisitions/ Currency 2011 Change Dispositions (b) (c) 2012 Total Organic Revenues: Latin America $ 1,461 215 2 (98) 1,579 8% 15% EMEA 1,178 70 - (90) 1,158 (2)% 6% Asia Pacific 154 10 - (5) 159 3% 7% International 2,792 296 2 (193) 2,897 4% 11% North America 974 (24) (3) (3) 945 (3)% (2)%
Slide 25: 2012 Segment Results, non-GAAP
(In millions) Organic Acquisitions/ Currency 2011 Change Dispositions (b) (c) 2012 Total Organic Revenues: Latin America $ 1,461 215 2 (98) 1,579 8% 15% EMEA 1,161 70 - (89) 1,143 (2)% 6% Asia Pacific 154 10 - (5) 159 3% 7% International 2,776 296 2 (192) 2,881 4% 11% North America 974 (24) (3) (3)
Slide 26: Legacy Liabilities
Estimated Contributions to U.S. Plans 2012A 2013 2014 2015 2016 2017 US Pension $ 37 14 29 42 44 38 UMWA 0 0 0 0 0 0 Black Lung/Other 7 5 5 5 4 4 Total $ 44 19 34 47 48 42 Legacy Liabilities ($ millions) $275 Under- funding Note: Above amounts based on actuarial assumptions at December 31, 2012.