Brinks Company (the) · NYSE:BCO

Brinks Company (the) — Investor Day (October 2015)

89 slides from Brinks Company (the)'s investor day presentation, Oct 6, 2015

  1. Slide 1: Investor Day: Secure Logistics. Worldwide.

    October 6, 2015 Investor Day Secure Logistics. Worldwide.

  2. Slide 2: Agenda

    2 Ed Cunningham Vice President Investor Relations & Corporate Communications Tom Schievelbein Chairman, President and Chief Executive Officer Joe Dziedzic Executive Vice President and Chief Financial Officer Mike Beech Executive Vice President and President Strategy & Focus Markets Amit Zukerman Exe

  3. Slide 3: Safe Harbor Statement & Non-GAAP Results

    3 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

  4. Slide 4: Tom Schievelbein

    MIBRINIKS Tom Schievelbein

  5. Slide 5: Updated Non-GAAP Earnings Per Share Guidance

    5 Updated Non‐GAAP Earnings Per Share Guidance $1.55 – 1.75 $1.40 – 1.50 $1.69 – 1.79 4Q14 Earnings Release Guidance Current Guidance Current Guidance at 4Q14 Earnings Release Guidance FX Rates $2.00 – 2.40 $2.00 – 2.20 $2.55 – 2.75 4Q14 Earnings Release Guidance Current Guidance Current Guidance at

  6. Slide 6: The Global Leader in Secure Logistics

    6 The Global Leader in Secure Logistics High Value Services (38%) ● Global Services ● Money processing and vaulting ● CompuSafe® Service ● Payments Guarding & Other (9%) ● Primarily manned guarding in France, Luxembourg & Greece Largest 5 Markets Global Markets ● Cash-in-transit ● ATM services Core

  7. Slide 7: A Trusted Provider of Secure Logistics

    7 A Trusted Provider of Secure Logistics The Lombardi Trophy The World’s Leading Shipper of Bullion Trusted Partner to Central Banks The MLB Commissioner’s Trophy 1859  Brink’s City Express formed 1956  Brink’s purchased by Pittston Coal Company 1961  Brink’s opens first European subsidiary in Fr

  8. Slide 8: Leadership Team

    8 Leadership Team Mike Beech Executive Vice President & President Strategy & Focus Markets Joe Dziedzic Executive Vice President & Chief Financial Officer Holly Tyson Vice President & Chief Human Resources Officer Amit Zukerman Executive Vice President & President Global Operations & Brink’s Global

  9. Slide 9: Brink's Serves Critical Needs

    9 Brink’s Serves Critical Needs  Cash in circulation continues to grow, even in developed markets  Over 85% of consumers within our developing market footprint, prefer cash for in-person transactions – Brink’s benefits from its long- standing presence in developing economies  Cash usage is resili

  10. Slide 10: Our Strategy

    10 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.

  11. Slide 11: Brink's Strategy in Action

    11 Brink’s Strategy in Action  U.S. improving quality and customer satisfaction  Mexico profit initiatives on track  France delivering higher-value services  Global Markets strengthening market position and delivering efficiency gains  Exited underperforming businesses  2014 restructuring and

  12. Slide 12: Cumulative FX Impact on Non-GAAP Earnings

    12 $1.25 $1.01 $1.40 - $1.50 $2.00 - $2.20 $0.14 $0.14 $0.14 $0.14 $0.24 $0.24 $0.24 $0.81 $0.81 $0.65 $1.39 $1.39 $2.59 – 2.69 $3.84 – 4.04 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 2013 Non-GAAP EPS 2014 Non-GAAP EPS 2015 Non-GAAP EPS Guidance 2016 Non-GAAP EPS Guidance 2013 FX 2

  13. Slide 13: Brink's Plan Will Drive Shareholder Value

    13 Brink’s Plan Will Drive Shareholder Value Brink’s has a track record of refining its business portfolio to deliver shareholder value  Acquisition of Mexican business for $60 million in 2010  Sale or shutdown of unprofitable and non-strategic businesses (2012 – 2014) Earnings growth driven by Me

  14. Slide 14: Mike Beech

    Mike Beech

  15. Slide 15: Overview: Largest Five Markets

    15 Overview: Largest Five Markets We have a substantial opportunity to create value by improving performance in our largest five markets Similarities  Size and scope  Core business  Mix of services  Challenges  Market position 2014 Non-GAAP Revenue 65% 35% 2014 Segment Operating Profit Global M

  16. Slide 16: Expand Our Offerings: Transformation in France

    16 Expand Our Offerings: Transformation in France In France, we fundamentally transformed our business model. We now manage some or all of our customers’ cash supply chains H I G H E R - V A L U E S E R V I C E S CASH ORDER & FORECASTING CASH RECYCLING FRONT AND BACK OFFICE DEVICES CASH PROCESS OUTS

  17. Slide 17: France Case Study: E.Leclerc

    17 France Case Study: E.Leclerc “Brink’s has evolved from supplier to business partner. Its new cash management services increase our efficiency and decrease risk and costs.” — Gerard Fournaud, E.Leclerc (Villeneuve s/Lot) Customer Benefits Added Higher- Value Services Previous Services  CIT  Mone

  18. Slide 18: France Case Study: BNP Paribas

    18 France Case Study: BNP PARIBAS “We have peace of mind knowing that Brink’s is managing 700 of our ATMs. This has freed us to focus on our core business and reduced our cost.” — Jean-Marie Alaurent, BNP PARIBAS Customer Benefits Added Higher- Value Services Previous Services  CIT  Money processi

  19. Slide 19: Transformation in France

    19  Customers want to spend less time and money on managing cash, so they can focus more on their businesses  A consultative sales approach and subject matter expertise are critical  Excellent quality in core services is the cost of entry  Repositioning Brink’s from CIT vendor to business partne

  20. Slide 20: How We Achieve Our Profit Goals: Fix the U.S.

    20 How We Achieve Our Profit Goals: Fix the U.S. U.S. Operating Profit Margin Actions Expand Our Offerings  Change revenue mix to include more higher-value money processing and outsourcing services Drive Efficiency  Focus on high-impact projects  CPI program – productivity improvement on all core

  21. Slide 21: Driving Efficiency: A Common Approach Across the Largest Five Markets

    21 Driving Efficiency: A Common Approach Across the Largest Five Markets With Continuous Process Improvement (CPI), we are consistently using proven methodologies to improve productivity and quality CPI Component Description Impact Lean Tools  Common toolbox for problem solving and process improvem

  22. Slide 22: CPI Case Study: Tampa

    22 CPI Case Study: Tampa Our standard processes and visual management are increasing productivity and quality Problem Action Result Morning departure delays cause customer service problems Morning departure delays cause customer service problems Streamlined and standardized truck loading process 33%

  23. Slide 23: Driving Efficiency: Flexible Fleet & KPI Dashboard

    23 Driving Efficiency: Flexible Fleet & KPI Dashboard We are focusing on high-impact projects Flexible Fleet  We are building a more flexible fleet to reduce route costs, while meeting customer needs and managing risk Dashboard  We are tracking data including daily KPIs for quality and productivit

  24. Slide 24: Expand Our Offerings: Vault Outsourcing and Retail Focus in the U.S.

    24 Expand Our Offerings: Vault Outsourcing and Retail Focus in the U.S. In the U.S., we are expanding vault business process outsourcing for financial institutions and retail cash management services H I G H E R - V A L U E S E R V I C E S CASH ORDER & FORECASTING CASH RECYCLING FRONT AND BACK OFFIC

  25. Slide 25: U.S. Case Study: Chase / BBVA Compass

    25 U.S. Case Study: Chase / BBVA Compass Customer Benefits Added Higher- Value Services Previous Services  CIT  ATM replenishment  Vault management outsourcing  Money processing for branches and commercial customers  Reconciliation for retail customers  Expanded geographical footprint  Creati

  26. Slide 26: How We Achieve Our Profit Goals: Fix Mexico

    26 How We Achieve Our Profit Goals: Fix Mexico Mexico Operating Profit Margin Actions Expand Our Offerings  Revenue growth 4 – 5% on retail services and expanded cash management services Drive Efficiency  Expand CPI program and productivity improvements to improve money-processing margins  Contin

  27. Slide 27: Expand Our Offerings: Retail Focus in Mexico

    27 Expand Our Offerings: Retail Focus in Mexico In Mexico, we are helping retailers, consumer product manufacturers and distributors manage cash more effectively H I G H E R - V A L U E S E R V I C E S CASH ORDER & FORECASTING CASH RECYCLING FRONT AND BACK OFFICE DEVICES CASH PROCESS OUTSOURCING VAU

  28. Slide 28: Driving High-Value Services for Mexican Retail: Before

    28 Driving High‐Value Services for Mexican Retail Our customer’s cash supply chains BEFORE: End of day: the associate counts and organizes the collected cash. The associate deposits the money with the teller and gets a receipt. The teller counts money, updates income in the system and deposits the m

  29. Slide 29: Driving High-Value Services for Mexican Retail: After

    29 Driving High‐Value Services for Mexican Retail Our customers’ cash supply chains AFTER: “Thanks to Brink’s, our sales team now spends more time working with our retail customers and less time counting cash.” — Adrian Alvarez, Gruma Sales associate delivers product & collects cash from retailer. E

  30. Slide 30: Mexico City Case Study

    30 Mexico City Case Study We are teaching employees to improve profitability by using Lean tools to reduce waste, measure performance and implement standard processes Problem Action Result Low productivity affected quality and timeliness Morning departure delays cause customer service problems Emplo

  31. Slide 31: Largest Five Markets Summary

    31 Largest Five Markets Summary Brink’s largest five markets represent a significant opportunity to create value.  Our largest five markets together represent 65% of Brink’s non-GAAP revenue but only 50% of our segment operating profit  Improvement in these markets is a significant driver of poten

  32. Slide 32: Amit Zukerman

    Amit Zukerman

  33. Slide 33: Segment Overview: Global Markets

    33 Segment Overview: Global Markets  Diversified country and service portfolio outside the largest 5 markets  Consistent Brink’s strategy worldwide – to expand service offerings and drive efficiency  Key examples of strategy execution in APAC and LATAM 69 SUBCONTRACTOR COUNTRIES 337 BRANCHES 28,0

  34. Slide 34: Global Markets Areas of Operation

    34 Global Markets Areas of Operation ASIA PACIFIC JAPAN INDONESIA SINGAPORE VIETNAM CHINA KOREA MONGOLIA THAILAND MALAYSIA AUSTRALIA INDIA LATAM ARGENTINA CHILE BOLIVIAPANAMA COLOMBIA  10+ Lines of Business  Fluid risk environments  Differing levels of market maturity  Size of operation  Variab

  35. Slide 35: Global Markets Financial Results

    35 Global Markets Financial Results Revenue Operating Profit ($MM) ($MM)Organic Growth (%) 1,031 1,082 1,077 525 487 6% 8% 8% 5% 6% 2012 2013 2014 1H14 1H15 112 128 126 53 65 10.9% 11.8% 11.7% 10.1% 13.4% 2012 2013 2014 1H14 1H15 Margin (%)

  36. Slide 36: Global Markets Strategy

    36 Global Markets Strategy Expand Our Offerings Drive Efficiency Delayering  Regions and Functions  Country Local Execution  Empower country leadership  Agile strategy and execution Grow, Fix, or Divest  Invest in growth in selected markets  Fix under-performing countries  Divest unprofitable

  37. Slide 37: Asia Pacific Strategy Execution

    37 Asia Pacific Strategy Execution 14.8 23.1 (0.5) (7.8) 4.5 11.1 1.0 2012 Operating Profit FX INFLATION GROW FIX DIVEST 2014 Operating Profit  Solutions  Volume  Acquisition  Geographic Expansion  Regional restructuring  Productivity  Loss reduction  Australia domestic business Asia Operati

  38. Slide 38: Expand our Offerings in Colombia

    38 Expand our Offerings in Colombia Brink’s unique cash treasury management solution saves 50% cost to our bank customer and generates superior margins. A MAJOR BANK’S COST POSITION ($MM) Treasury $6.6 CIT $4.4 Treasury $1.1 CIT $4.4 Before After C o r e S e r v i c e s Cash in Transit Money Process

  39. Slide 39: Amit Zukerman Global Services

    Amit Zukerman Global Services

  40. Slide 40: Brink's Global Services – Who We Are

    40 Brink’s Global Services – Who We Are Diamond Jewelry Banknote Precious Metals Credit Cards Electronics Global Transportation Storage Customs Clearance Processing Distribution Risk Management 109 Countries | 600 Airports | 3,000 Cities | 15,000+ Customers | #1 Global Player Our Services Lines of B

  41. Slide 41: Our Customers' Supply Chain

    41 Our Customers’ Supply Chain Gold Dore Gold Bars Gold Jewelry Global Services is involved in every step of the supply chain providing logistics and risk management for our customers

  42. Slide 42: Market Leading Position Drives Profitability

    42 Market Leading Position Drives Profitability 2005 2008 2015 Estimate 65% 35% Brink’s Others Strong IT Capability  Enabling Solutions To Solve Customers’ Problems People  Industry Expertise, Loyal  Customer Relations Footprint & Network  Unmatched Service Capacity  Lean Organization Brand  R

  43. Slide 43: Global Footprint Drives USD Distribution

    43 Global Footprint Drives USD Distribution KYC | AML | Reputational Risk | Compliance | Counterfeit | Physical Losses | Geo-Political Risk Multiple FX Processing Centers Strategic Partnerships Global Footprint Brink’s FX Processing Network Central Banks | Wholesale Banks | Financial Institutions |

  44. Slide 44: Expand our Offerings – Redefining the Market

    44 Expand our Offerings – Redefining the Market Low Cost Door to Door Supply Chain Logistics Risk Management Liability Cover Security Regulation & Compliance Services X X Courier X X X X Integrator X X X X X X Brink’s HIGH VALUE CONSUMER ELECTRONICS LUXURY GOODS SENSITIVE CARGO ART Our unique compet

  45. Slide 45: Redefining the Market – Electronics Solution in Brazil

    45 Redefining the Market – Electronics Solution in Brazil Multiple Suppliers  Trucking  Physical Escort  Monitoring  Risk Management  Insurance Secure Transportation Airside Supervision Before High Cost Operations High Losses to Business Brink’s solution Liability Coverage 25% Cost Savings To C

  46. Slide 46: Joe Dziedzic, EVP & Chief Financial Officer

    Joe Dziedzic EVP & Chief Financial Officer

  47. Slide 47: Brink's Strategy Translates into Financial Results

    47  Brink’s has undertaken several cost savings initiatives at our operating segments and at the corporate levelEfficiency  Despite currency headwinds, organic growth and cost initiatives have resulted in meaningful margin growth in 2015 & positioned Brink’s for continued growth in 2016 Growth  I

  48. Slide 48: Top Line Growth Challenged by Currency Headwinds

    48  Argentina and Brazil organic growth primarily inflation driven  Asia and Payments growth driven primarily by volumes Note: See reconciliation to GAAP results in Appendix Top Line Growth Challenged by Currency Headwinds Non-GAAP Revenue Bridge – 2012 to 2015 ($MM) PaymentsLargest 5 Markets Glob

  49. Slide 49: 2016 Non-GAAP Revenue Outlook

    49 Non-GAAP Revenue Bridge – 2015E to 2016E ($MM) 2016 Outlook 2016 Non‐GAAP Revenue Outlook Drivers ~$3,000 ~$3,000 150 (150) 2015 Est. 2016 Est. Organic Currency Note: See reconciliation to GAAP results in Appendix  Organic growth ~5% — Inflation-driven growth in Argentina and Brazil — Volume-dri

  50. Slide 50: Key Initiatives

    Key Initiatives Joe Dziedzic EVP & Chief Financial Officer

  51. Slide 51: Global Procurement Impact in Large 5 Markets

    51 Note: All metrics relate to Large 5 Markets only Global Procurement Impact in Large 5 Markets Key Global Tenders Executed in 2015Armored Vehicles (Acquisition Cost per Vehicle) 2013 2015 Est. ~20% reduction  Global tenders  Value engineer vehicle design  Match vehicle type to environment Estim

  52. Slide 52: Centralization of IT Infrastructure

    52 Centralization of IT Infrastructure Reducing IT management layers and number of projects to drive 2016 savings while consolidating data centers and working to standardize applications Global IT Costs ($MM) Data Centers 2013 2016 Target Reduction $(15) Organic (10) Currency $(25) Total 46 24 15 20

  53. Slide 53: Corporate Expense Reduction

    53 Corporate Expense Reduction Reducing corporate expense through reorganization, restructuring and fewer corporate programs Corporate Expense (Global and regional management and corporate funded programs) ($MM) $117 $116 $90 - 95 $80 – 85 2013 2014 2015 Est. 2016 Est.

  54. Slide 54: Improvement in the Tax Rate

    54 Improvement in the Tax Rate Non-GAAP Tax Rate (%) 46% 42% ~39% 2014 2015 Est. 2016 Est. 2015 Non-GAAP Tax Rate Estimate “Weighted” Statutory rate of estimated 2015 earnings ~33%  Inability to credit Latin America Withholding taxes against U.S. taxes ~3%  Limitation on deductibility of certain p

  55. Slide 55: Operating Profit Growth

    Operating Profit Growth Joe Dziedzic EVP & Chief Financial Officer

  56. Slide 56: Non-GAAP Operating Margin Improvement

    56 Note: See reconciliation to GAAP results in Appendix Non‐GAAP Operating Margin Improvement Non-GAAP Operating Profit ($MM) Operating Margin (%) $167 147 124 150 – 160 $200 – 220 5.2% 4.4% 3.7% 5.0% – 5.3% 6.7% – 7.3% 2012 2013 2014 2015 Est. 2016 Est. 2012 to 2014  Unfavorable currency impact ~$

  57. Slide 57: Non-GAAP Operating Profit: 2012 to 2015

    57 Note: See reconciliation to GAAP results in Appendix Non‐GAAP Operating Profit: 2012 to 2015 Organic Growth Driven by Latin America Non-GAAP Operating Profit Bridge – 2012 to 2015 ($MM) $167 230 – 240 17 – 22 56 – 61 (5) 0 - (5) (80) $150 – 160 2012 2015 Estimate before Currency Impact 2015 Estim

  58. Slide 58: Non-GAAP Operating Profit Outlook and Key Drivers

    58 Note: See reconciliation to GAAP results in Appendix Non‐GAAP Operating Profit Outlook and Key Drivers Non-GAAP Operating Profit Bridge – 2015E to 2016E ($MM) Organic Currency $150 – 160 $200 – 220 75 – 85 (25) 2015 Est. 2016 Est. Margin 5.0% – 5.3% 6.7% – 7.3% Drivers 2016 vs. 2015 Currency  Ar

  59. Slide 59: Global Payments Business: Serving the Unbanked & Underbanked

    59 Global Payments Business: Serving the Unbanked & Underbanked Market Walk-in Bill Payment & Mobile Phone Top-up Services ~$80 Million Brazil Colombia MexicoPanama ~35K Agents ~8K Billers ~17MM Transactions per month ~6MM Consumers served per month Prepaid Card serving U.S. Underbanked  Leveraging

  60. Slide 60: Cash Flow

    Cash Flow Joe Dziedzic EVP & Chief Financial Officer

  61. Slide 61: Investing in Our Business

    61 Investing in Our Business Expect to maintain 1.0 reinvestment ratio (or lower) through lower IT spend and better match of vehicle to operating environment Capital Expenditure and Reinvestment Ratio(1) ($MM) Note: See reconciliation to GAAP amounts in Appendix 1. Excluding Venezuela 82 53 33 36 28

  62. Slide 62: Legacy Liabilities: U.S. Pension, Coal Miner Medical and Black Lung

    62 Legacy Liabilities: U.S. Pension, Coal Miner Medical and Black Lung Actions taken to minimize future payments to legacy liabilities Actions Taken U.S. Primary Pension  Prepaid $61 million in 2014 — Saved ~$1.5 million annually in PBGC premiums in 2014, ~$1.8 million annually thereafter — No futu

  63. Slide 63: Addressing Legacy Liabilities Payments

    63 Addressing Legacy Liabilities Payments Actions taken minimize cash payments to legacy liabilities for foreseeable future Legacy Liabilities Payments ($MM) $22 13 87 $7 7 7 6 6 6 5 5 $4 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E Primary US Pension Black Lung

  64. Slide 64: Cash Flow Trend

    64 Cash Flow Trend  Free cash improving in 2015 as net income improves  Expect continued improvement from net income growth Reported Cash Flow ($MM) 2012 to 2014  Before change in debt  Excluding Venezuela  Excludes customer held cash ($11) ($15) ($12) $30 – 50 2012 2013 2014 2015 Est.  Includ

  65. Slide 65: Conservative Capital Structure

    65 Conservative Capital Structure Notes: See reconciliation to GAAP amounts in Appendix 1. Cash available for corporate purposes 2. Sourced from Brink’s 10-Q; balance sheet dated June 30, 2015 With $147MM in cash(1) and $313MM in undrawn revolver capacity as of June 30, 2015, Brink’s has ample liqui

  66. Slide 66: Summary

    66  Cost savings initiatives to drive efficiency  Currency Headwinds offsetting meaningful organic growth  Margin improvements  Continue reinvestment in the business  Cash flow grows in 2015 with income  Ample liquidity  Efficient capital structure with flexibility to take advantage of future

  67. Slide 67: Closing

    Closing Tom Schievelbein

  68. Slide 68: Defining the Opportunity…Why Brink's?

    68  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 — Cash use strong in emerging markets, stable i

  69. Slide 69: Mike Beech Appendix

    Mike Beech Appendix

  70. Slide 70: Segment Overview: U.S.

    70 Segment Overview: U.S. ($ Millions) Revenue Market Dynamics $707 $708 $728 $356 $368 (3)% 0% 3% 1% 3% (16) (12) (8) (4) 0 4 0 200 400 600 800 1,000 1,200 1,400 2012 2013 2014 1H14 1H15 Organic Growth (%)($)  Strong cash use despite increasing use of non-cash payments  Many banks still rely on i

  71. Slide 71: Segment Overview: Mexico

    71 Segment Overview: Mexico ($ Millions) Revenue Market Dynamics $395 $424 $388 $198 $171 9% 4% (4)% (3)% (1)% (65) (50) (35) (20) (5) 10 0 100 200 300 400 500 2012 2013 2014 1H14 1H15 Organic Growth (%)  Cash intensive market supports long-term sustained growth in cash management  Immature cash a

  72. Slide 72: Segment Overview: Brazil

    72 Segment Overview: Brazil  Harsh persistent economic recession and political turmoil  Consolidation of banks and retail contraction  Lower physical volumes and lower value  Delays / challenges in gaining annual price negotiations  Market wage inflation  Revenue decrease due to delay in price

  73. Slide 73: Segment Overview: France

    73 Segment Overview: France  Stagnant economic environment  Banking consolidations, reductions in bank branches and ATMs  Difficult labor environment and price sensitive market  Mature cash cycles and outsourcing in both FI and retail segments  Year over year cash volume reductions  Lower volu

  74. Slide 74: Segment Overview: Canada

    74 Segment Overview: Canada  Low-growth economy  Few large banks; retail sector contraction  Opportunity to grow market share due to changes in competitive landscape  Revenue lower on reduced volumes  H1 OP and margins flat  Cost and productivity offsetting lower volumes and pension increase 

  75. Slide 75: Amit Zukerman Appendix

    Amit Zukerman Appendix

  76. Slide 76: Segment Overview: Latin America

    76 Segment Overview: Latin America Revenue Market Dynamics 402 407 381 184 182 11 9 12 10 15 2012 2013 2014 1H14 1H15 Organic Growth (%)($MM)  Strong use of cash in society, large unbanked population  Various degrees of maturity in cash supply chain outsourcing and regulatory environment within th

  77. Slide 77: Segment Overview: EMEA

    77 Segment Overview: EMEA Revenue Market Dynamics 503 541 556 274 228 3% 6% 4% 3% (1%) 2012 2013 2014 1H14 1H15 Organic Growth  Debt crisis in Greece hampered domestic financial activities and cash supply chain  Cautious economic outlook across the region… sluggish luxury market  Customers lookin

  78. Slide 78: Segment Overview: Asia

    78 Segment Overview: Asia Revenue Market Dynamics 126 134 140 67 77 4% 11% 7% 3% 13% (5.0) (3.0) (1.0) 1.0 0 50 100 150 200 250 300 2012 2013 2014 1H14 1H15 Organic Growth  China economy slowing… lower demand impact both domestic activities and regional economies  Cost cutting pressure prevails am

  79. Slide 79: Segment Results and Non-GAAP Results Reconciled to GAAP

    Segment Results and Non‐GAAP Results Reconciled to GAAP

  80. Slide 80: Revenues

    80 Revenues Revenues Full First Half 2012 2013 2014 2014 2015 Revenues: U.S. $ 706.7 707.5 727.8 $ 356.1 367.7 France 511.4 517.6 517.4 261.9 213.1 Mexico 395.0 423.9 388.2 198.3 170.8 Brazil 363.6 354.4 364.1 177.9 141.5 Canada 187.5 191.4 179.7 89.7 78.4 Largest 5 Markets 2,164.2 2,194.8 2,177.2 1

  81. Slide 81: Operating Profit

    81 Operating Profit Operating Profit Full First Half 2012 2013 2014 2014 2015 Operating Profit: U.S. $ 32.0 12.8 22.8 $ 7.2 14.7 France 39.7 44.5 39.4 11.5 10.8 Mexico 17.7 26.9 9.6 2.8 12.4 Brazil 39.9 41.1 34.2 15.1 8.2 Canada 9.3 10.5 12.8 4.7 4.1 Largest 5 Markets 138.6 135.8 118.8 41.3 50.2 Lat

  82. Slide 82: Margin

    82 Margin Margin Full First Half 2012 2013 2014 2014 2015 Margin: U.S. 4.5% 1.8% 3.1% 2.0% 4.0% France 7.8% 8.6% 7.6% 4.4% 5.1% Mexico 4.5% 6.3% 2.5% 1.4% 7.3% Brazil 11.0% 11.6% 9.4% 8.5% 5.8% Canada 5.0% 5.5% 7.1% 5.2% 5.2% Largest 5 Markets 6.4% 6.2% 5.5% 3.8% 5.2% Latin America 13.0% 14.6% 13.2%

  83. Slide 83: Other Items Not Allocated to Segments

    83 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) (In millions) Other items not allocated to segments Full First Half 2012 2013 2014 2014 2015 Revenues: Venezuela operations $ 342.6 447.1 211.8 $ 153.6 32.7 Operating profi

  84. Slide 84: Other Items Not Allocated to Segments: Venezuela

    84 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

  85. Slide 85: Other Items Not Allocated to Segments: Settlement, Retirement Plans

    85 Other Items Not Allocated to Segments The Brink’s Company and subsidiaries Other Items Not Allocated to Segments (Unaudited) Mexican settlement losses Employee termination costs in Mexico are accounted for as retirement benefits under FASB ASC Topic 715, Compensation — Retirement Benefits. Settle

  86. Slide 86: Non-GAAP Reconciliation

    86 Non‐GAAP Reconciliation The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for per share amounts) Non-GAAP results described in this presentation are financial measures that are not required by or presented in accordance with U.S. generally a

  87. Slide 87: Non-GAAP Reconciliation

    87 Non‐GAAP Reconciliation The Brink’s Company and subsidiaries Non-GAAP Results Reconciled to GAAP (Unaudited) (In millions, except for percentages and per share amounts) Full First Half 2012 2013 2014 2014 2015 Revenues: Non-GAAP $ 3,235.0 3,331.5 3,350.5 $ 1,655.0 1,503.7 Other items not allocate

  88. Slide 88: Free Cashflow

    88 Free Cashflow The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Free Cash Flow (Unaudited) (In millions) Free Cash Flow 2012 2013 2014 Net cash provided by operating activities – GAAP $ 250.5 201.5 141.3 Net cash used by investing activities – GAAP (167.3) (123.0) (94.0) Net cash pr

  89. Slide 89: Non-GAAP Other

    89 Non‐GAAP Other The Brink’s Company and subsidiaries Non-GAAP Reconciliations – Other Amounts (Unaudited) (In millions) Amounts Used to Calculate Reinvestment Ratio Fixed Assets Acquired 2011 2014 Capital expenditures – GAAP $ 176.0 136.1 Assets acquired under capital lease – GAAP 43.0 12.1 Fixed

Brinks — Investor Day (October 2015) on 6ix