Management Presentation
Management Presentation
December 16, 2009
December 16, 2009
Exhibit 99.1
2
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 regarding factors that could
affect financial performance is readily available in our press release dated
October 29, 2009 and in our filings with the Securities and Exchange Commission,
including our most recent forms 10-K and 10-Q. Information included in this
presentation is representative as of the date of the presentation only and The
Brink’s Company assumes no obligation to update any forward-looking
statements made.
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 regarding factors that could
affect financial performance is readily available in our press release dated
October 29, 2009 and in our filings with the Securities and Exchange Commission,
including our most recent forms 10-K and 10-Q. Information included in this
presentation is representative as of the date of the presentation only and The
Brink’s Company assumes no obligation to update any forward-looking
statements made.
n Introduction
n Brink’s Business Overview
n Financial Highlights
n Summary
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Agenda
Edward A. Cunningham
Director of Investor Relations &
Corporate Communications
Joseph W. Dziedzic
Vice President &
Chief Financial Officer
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Brink’s Company Overview
World’s premier security company
n Founded in 1859, Brink’s is
the oldest and largest secure
logistics company
the oldest and largest secure
logistics company
n Approximately 57,000 employees,
900 branches and 9,400 vehicles
worldwide
900 branches and 9,400 vehicles
worldwide
n Diversified operations with revenue
of $3.2 billion in 2008
of $3.2 billion in 2008
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The Brink’s Company
n Solid core industry dynamics
n Premier brand
n Leader in business segments
n Proven operational excellence
n Global footprint
n Growth strategy
n Financial performance
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Solid Core Industry Dynamics
Global Outsourced Cash Logistics Market
Source: Central Banks, Internal Company Estimates
($Bn)
$2.3 - - $2.8Bn
Notes in Circulation
¢ Cash use growing with
GDP in developed markets
GDP in developed markets
¢ Faster growth in
developing economies
developing economies
¢ Customer outsourcing
(Cash Logistics) increasing
(Cash Logistics) increasing
¢ Opportunities vary by
region
region
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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 2009
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Leader in Business Segments
Secure Logistics
Secure Logistics
Total: $14.5 billion
Brink’s
Loomis
G4S
Others
Prosegur
Leading Share in Fragmented Secure Logistics Market
Estimated Global Secure Logistics Market Share
Source: Internal Company Estimates based on most recently available data
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2008 Revenue
(% of Total)
(% 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
delivery of cash, coins, checks
and other valuables
n ATM services
n Provides infrastructure for
High Value Services
High Value Services
$1.7 Billion (53%)
$1.1 Billion (35%)
$0.4 Billion (12%)
n Global Services
– Secure long-distance
transport of valuables
transport of valuables
– International shipping
by air / sea / land
by air / sea / land
n Cash Logistics Services
– Money processing
– Virtual vaulting
– CompuSafe® Service
n New Services
– Payment Services
n High-value niche guarding
services in select E.U. countries
services in select E.U. countries
n Protection of
– Airports
– Embassies
– Public venues
– Stores
Source: Internal Company Estimates
Leader in Business Segments
Business Lines, Products and Services
Business Lines, Products and Services
Cash Logistics
Retailer
Bank
Brink’s
Facility
Facility
(Virtual
Vault)
Vault)
l Builds on CIT & IT
capabilities
capabilities
l Money processing (sorting,
counterfeit checking,
packing, distribution)
counterfeit checking,
packing, distribution)
l Virtual vaulting (processing &
storage of cash for banks)
storage of cash for banks)
l Intelligent safes (counting,
counterfeit checking and
networking with banks)
counterfeit checking and
networking with banks)
– CompuSafe® Service /
I-Cash / I-Deposit
I-Cash / I-Deposit
CompuSaf
e®
e®
Leader in Business Segments
Cash Logistics: Features & Benefits
Cash Logistics: Features & Benefits
Benefits
Banks
Retailers
Brink’s
l Outsourcing and
cost reduction
cost reduction
l Reduced assets
invested in vaults
invested in vaults
l Improved customer
service
service
l Expanded vaulting
capacity extends
geographic reach
capacity extends
geographic reach
l Enhanced safety
and security
and security
l Better cash
management,
same-day credit
management,
same-day credit
l Lower bank fees
l Enhanced safety
and security
and security
l Reduced cash
administration /
more productive
employees
administration /
more productive
employees
l Improved customer
service
service
l Reduced theft,
counterfeiting
counterfeiting
l Improved
customer service
customer service
l Revenue growth,
higher margins
higher margins
l Longer contracts
(“sticky”)
(“sticky”)
l Lower
transportation
costs
transportation
costs
l Enables “full-
service” offering
service” offering
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Leader in Business Segments
CompuSafe® Service
CompuSafe® Service
Leader in Business Segments
CompuSafe® Service
CompuSafe® Service
¢ CompuSafe® Service
gaining traction
gaining traction
¢ Installed base expected to
grow 40% in 2009
grow 40% in 2009
Est
Leader in Business Segments
Relative Growth and Margins
Relative Growth and Margins
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Security Services
Cash-in-Transit
High Value Services
n Global Services
n Cash Logistics
n New Services
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Proven Operational Excellence
n Demonstrated global expertise
– Security
– Risk management
– Logistics
– Pricing discipline
– Human resource management
– IT capabilities
Global Footprint
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North America
Asia Pacific
Latin America
Europe, Middle East, Africa
Approximately 900 branches in 50 countries plus 66 additional
countries served by Global Services
countries served by Global Services
Canada
54 Branches
United States
197 Branches
EMEA
269 Branches
26 Countries
26 Countries
Asia Pacific
91 Branches
12 Countries
12 Countries
Latin America
262 Branches
9 Countries
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Global Footprint
Brink’s Segment Revenue and Operating Profit
Brink’s Segment Revenue and Operating Profit
Revenue
Segment Operating Profit
North America
Asia Pacific
Latin
America
America
Europe, Middle East and Africa
Total: $3.2 billion
International
Total: $272 million
December 31, 2008
December 31, 2008
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Growth Strategy
n Core
1. Continue to develop and grow high-margin products and services
– Cash Logistics, CompuSafe® Service, Global Services
2. Penetrate new geographies with strong growth potential
n Plus
1. Enter new security-related markets where we can create value for
customers with our brand and other competitive advantages
customers with our brand and other competitive advantages
– Payment Processing, Commercial Security
n Acquisitions to supplement organic growth
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Revenue
($MM)
Financial Performance
Revenue Growth
Revenue Growth
Last 12
Months
9/30/09
Months
9/30/09
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Operating Profit
($MM
)
)
Financial Performance
Profit Growth
Profit Growth
Segment Operating Profit | 149 | 120 | 184 | 223 | 272 | 227 |
Corporate/Former Ops | (87) | (82) | (73) | (62) | (43) | (28) |
Operating Profit | 62 | 38 | 111 | 161 | 229 | 199 |
Last 12 Months
9/30/09
9/30/09
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Financial Performance
Enhancing Margins
Enhancing Margins
1. Grow high-margin business
– Global Services, Cash Logistics
– Continue developing IT, sales & marketing capabilities
2. Grow in high-margin, high-growth geographies
– BRIC, Latin America, Asia-Pacific, Africa
3. Improve or exit underperforming assets
– Challenges in Europe
– U.K. ground operations sold in 2007
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Financial Performance
Balance Sheet
Balance Sheet
n $35 million net debt at September 30, 2009
n Solid cash flow from operations
n Over $260 million of available borrowing capacity
n Investment grade credit rating
Cash | $234 |
Debt | (269) |
Net cash/(debt)(1) | ($ 35) |
Note: (1) See Non-GAAP reconciliation on page 18 of the Third-Quarter
earnings release dated October 29, 2009
earnings release dated October 29, 2009
Financial Performance
Execution Creates Value
Execution Creates Value
($)
Note: (1) $100 invested on December 31, 2001 in stock or index. Includes reinvestment of dividends
Cumulative Stock Total Return (1)
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Financial Performance
2009 versus 2008
2009 versus 2008
n Currency conversion complete
n Foreign exchange impact
n Higher pension expenses
n Global economic weakness
– Pressure on pricing and service
frequency
frequency
– BGS Diamond & Jewelry and
Europe
Europe
Difficult Comparisons with 2008
Positive Factors in 2009
n More outsourcing by banks and
retailers, CompuSafe® Service
accelerating
retailers, CompuSafe® Service
accelerating
n Corporate expenses lower
n Continued disciplined execution
n Strong balance sheet
n Proactively addressing pension
funding
funding
n Attractive acquisitions at more
reasonable values
reasonable values
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Summary
n Solid core industry dynamics
n Premier brand
n Leader in business segments
n Proven operational excellence
n Global footprint
n Clear growth strategy
n Strong financial performance
