Brinks Company (the) · NYSE:BCO
Brinks Company (the) — Investor Presentation (February 2009)
24 slides from Brinks Company (the)'s investor presentation, Feb 23, 2009
Slide 1: Management Presentation February 24, 2009
Management Presentation February 24, 2009 Management Presentation February 24, 2009
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation, including questions and answers, may contain both historical and 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
Slide 3: Agenda
Agenda n Introduction n Brink’s Business Overview n Financial Highlights n Summary Michael J. Cazer Vice President & Chief Financial Officer Edward A. Cunningham Director of Investor Relations & Corporate Communications
Slide 4: Brink's Company Overview
Brink’s Company Overview World’s premier security company n Founded in 1859, Brink’s is the oldest and largest secure logistics company n Diversified operations with revenue of $3.2 billion in 2008 n Approximately 57,000 employees, facilities and 9,400 vehicles worldwide
Slide 5: The Brink's Company
The Brink’s Company n Solid core industry dynamics n Premier brand n Leader in business segments n Proven operational excellence n Global footprint n Growth strategy n Strong financial performance
Slide 6: Solid Core Industry Dynamics
Solid Core Industry Dynamics Global Outsourced Cash Logistics Market Source: Central Banks, Internal Company Estimates ($Bn) $2.3 - - $2.8Bn Notes in Circulation ¢ Cash use growing with GDP in developed markets ¢ Faster growth in developing economies ¢ Customer outsourcing (Cash Logistics) increasin
Slide 7: Premier Brand
Premier Brand n Globally recognized brand n A brand built on – Trust and integrity – Quality of our people – Safety and security – Operational excellence – History and heritage – Global network n 150th Anniversary in
Slide 8: Leader in Business Segments: Secure Logistics Market Share
Leader in Business Segments Secure Logistics Leading Share in Fragmented Secure Logistics Market Total: $14.5 billion Brink’s Securitas / Loomis G4S Others Prosegur Estimated 2008 Global Secure Logistics Market Share Source: Internal Company Estimates
Slide 9: Business Lines, Products and Services
Leader in Business Segments Business Lines, Products and Services Revenue (% of Total) Description High Value Services Cash-in-Transit Security Services n Armored car transportation n Point-to-point pick-up and delivery of cash, coins, checks and other valuables n ATM services n Provides infrastruct
Slide 10: Cash Logistics: Features & Benefits
Cash Logistics Bank Leader in Business Segments Cash Logistics: Features & Benefits Benefits Brink’s Facility (Virtual Vault) l Builds on CIT & IT capabilities l Money processing (sorting, counterfeit checking, packing, distribution) l Virtual vaulting (processing & storage of cash for banks) l Inte
Slide 11: Relative Growth and Margins
Leader in Business Segments Relative Growth and Margins Security Services Cash-in-Transit High Value Services n Global Services n Cash Logistics n New Services
Slide 12: Proven Operational Excellence
Proven Operational Excellence n Demonstrated global expertise – Security – Risk management – Logistics – Pricing discipline – Human resource management – IT capabilities
Slide 13: Global Footprint
Global Footprint North America Asia Pacific Latin America Europe, Middle East, Africa Canada Branches United States Branches EMEA Branches 26 Countries Asia Pacific Branches 12 Countries Latin America Branches Countries
Slide 14: Brink's Segment Revenue and Operating Profit
Global Footprint Brink’s Segment Revenue and Operating Profit Revenue Segment Operating Profit North America Asia Pacific Latin America Europe, Middle East and Africa Total: $3.2 billion International Total: $272 million December 31, 2008 December 31, 2008
Slide 15: Growth Strategy
Growth Strategy n Core – Increase share in current geographic markets – Penetrate new geographies with strong growth potential – Continue to develop and grow high-margin products and services Cash Logistics, CompuSafe ® Services, Global Services – Provide full-range cash management solutions n Plus
Slide 16: Strong Financial Performance: Revenue Growth
Strong Financial Performance Revenue Growth Revenue ($MM)
Slide 17: Profit Growth
Strong Financial Performance Profit Growth Segment Operating Profit Corporate/Former Ops Operating Profit Operating Profit ($MM) (87) (82) (73) (62) (43)
Slide 18: Enhancing Margins
Strong Financial Performance Enhancing Margins n Continue developing IT capabilities – CompuSafe® Service, Virtual Vaulting, I-Deposit, etc. n Investing in sales and marketing – Selling solutions n Grow high-margin business – Global Services, Cash Logistics n Grow in high-margin geographies – BRIC,
Slide 19: Balance Sheet
Strong Financial Performance Balance Sheet n $62 million net cash at December 31, 2008 n Strong cash flow from operations n Over $300 million of available borrowing capacity n Investment grade credit rating Cash $251 Debt (189) Net cash/(debt) (1) $ Note: (1) Non-GAAP reconciliation
Slide 20: Short and Long-Term Objectives
Strong Financial Performance Short and Long-Term Objectives Long-Term Organic (1) Revenue Mid-to-high single-digit % growth High single-digit % growth per year Operating Margin Approaching 8% Improve by 50 bps per year (1) Organic revenue is a non-GAAP measure. For details regarding organic revenue
Slide 21: 2009 versus 2008
Strong Financial Performance 2009 versus 2008 n Continued economic weakness, lower margins expected n Foreign exchange impact n Currency conversion complete n Higher pension expenses n Higher tax rate Difficult Comparisons with 2008 Positive Factors in 2009 n Continued disciplined execution n Strong
Slide 22: Revenue Growth Across Economic Cycles
Strong Financial Performance Revenue Growth Across Economic Cycles Strong Financial Performance Revenue Growth Across Economic Cycles Sources: U.S. Department of Commerce - Bureau of Economic Analysis, Internal Company Data
Slide 23: Execution Creates Value
Strong Financial Performance Execution Creates Value ($) Note: (1) $100 invested on December 31, 2001 in stock or index. Includes reinvestment of dividends Cumulative Stock Total Return (1)
Slide 24: Summary
Summary n Solid core industry dynamics n Premier brand n Leader in business segments n Proven operational excellence n Global footprint n Growth strategy n Strong financial performance