The Brink’s Company
Investor Overview
Investor Overview
NYSE:BCO
March 2011
Exhibit 99-1
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 could affect financial
performance is in our press release dated February 3, 2011, 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 today only and the company assumes no obligation to update any forward-
looking statements.
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 in our press release dated February 3, 2011, 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 today only and the company assumes no obligation to update any forward-
looking statements.
2
Today’s Presentation
¢ Business Overview
¢ Growth Opportunities
¢ Creating Value for Investors
3
4
¢ Premier Brand
¢ Global Footprint
¢ Improving Market Fundamentals
¢ Economic recovery
¢ Cash growing worldwide
¢ Interest rates
¢ Compelling Growth Opportunities
¢ Maximize profits in developed markets
¢ Expand in emerging markets
¢ Invest in solutions and adjacent markets
Investment Highlights
4
5
¢ World’s Largest Secure Logistics Company
¢ Premier global brand
¢ Customers in more than 100 countries
¢ ~70,000 employees; 1,000 branches and 13,000
vehicles
vehicles
¢ 2010 Revenue - $3.1 billion
¢ Global Cash-In-Transit (CIT) network supports
growth in High-Value Services
growth in High-Value Services
Company Snapshot
2010 Revenue
($3.1 billion)
5
Diverse Business Lines: CIT Drives High-Value Services
¢ Global Infrastructure
High-Value Services
¢ Global Services
– Secure long-distance
transport of valuables
transport of valuables
¢ Cash Logistics
– Money processing
– Virtual vaulting
– CompuSafe® Service
¢ Adjacencies
– Payment Services
– Commercial Security
6
¢ Guarding in select countries
– Airports, embassies
High-Value Services…High-Margin Solutions
CIT Footprint Supports High-Value Services
¢ Global Services
¢ Secure transport of valuables over long distances
¢ Diamonds, jewelry, banknotes, precious metals
¢ 7000 Customers, 5000 Cities, 1500 daily shipments
¢ Cash Logistics
¢ Money Processing
¢ Vaulting
¢ CompuSafe
¢ Adjacent Services
¢ Extending our brand into new markets
¢ Commercial Security, Payment Processing
7
8
¢ Maximize profits in developed markets
¢ EMEA, North America
¢ Invest in growth opportunities
¢ Emerging markets:
BRIC, LATAM, Asia-Pacific
BRIC, LATAM, Asia-Pacific
¢ High-Value Services:
Global Services, Cash Logistics
Global Services, Cash Logistics
¢ Adjacencies:
Commercial Security, Payment Processing
Commercial Security, Payment Processing
Global Secure Logistics
Market
Market
Source: Internal Company Estimates based on most recently available data
Global Leader…Global Growth Strategy
8
Leading Share in Fragmented Market
Long-Term Goal: Deliver Shareholder Value
Organic
Revenue
Revenue
8 - 10%
Growth
Segment
Margin
Target
9
Note: Organic revenue growth and segment margin are calculated on Non-GAAP revenue and segment profit.
See Appendix for reconciliation to GAAP.
2010 Revenue: $1.2B
Region Overview:
¢2010: 3% organic growth…low single-digit margin
¢Diverse competitive, regulatory and threat environments
¢Customers want outsourced solutions
Strategy:
¢Europe: Maximize CIT profits; increase efficiency; fix
underperformers
underperformers
¢Invest in High-Value Services and Developing Markets
EMEA: Improve Operating Performance
10
2010 Revenue: $918M
Region Overview:
¢ Market leader
¢ 2010: Organic revenue flat…4.8% margin
¢ Price and volume 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 CIT…Grow High-Value Services
11
Region Overview:
¢ Growing economies
¢ High-risk threat environment…customers value security
¢ Growing need to protect product supply chains
¢ 2010: 19% organic growth, profit margin 13%
Strategy:
¢ Strengthen and expand footprint
¢ Leverage footprint to grow High-Value Services
¢ Mexico: Increase CIT margins, add High-Value Services
2010 Revenue: $877M
Latin America: Continued Strong Growth
12
2010 Revenue: $127M
Region Overview:
¢ High-growth, service-driven economies
¢ Varying degrees of banking sophistication, gov’t restrictions
¢ Strong in Hong Kong; growing in China, India, Japan
¢ 2010: 23% organic growth, profits more than doubled
Strategy:
¢ Leverage Global Services network
¢ Accelerate China and India growth
¢ Expand commercial security capabilities
Asia Pacific: Invest and Grow
13
Financial Strength and Flexibility
n Solid Revenue Growth
n 8% CAGR 2006-2010, primarily organic
n Late 2010 acquisitions added $450 million
n Global economies stabilizing and improving
n Cash Flow Supports Continued Growth
n ~40% of Capex focused on Emerging
Markets and High-Value Services (’07 - ’10)
n Strong Balance Sheet
n Investment grade credit rating
n $245 million net debt; $300 million available
credit
credit
n Manageable cash outflow for legacy
liabilities (see appendix)
liabilities (see appendix)
14
Note: CAGR calculated on Non-GAAP revenues. Net debt is a Non-GAAP
measure. See appendix for reconciliation to GAAP.
measure. See appendix for reconciliation to GAAP.
Achieve Targets…Create Shareholder Value
2010 Actual:
n 5% organic revenue growth
n 7.2% segment margin
2011 Outlook:
n Mid-to-high single-digit organic revenue growth
n High end of 6.5% to 7.0% segment margin
n Includes $450 million of acquisition revenue at breakeven margin
Long-Term Targets:
n High single-digit organic revenue growth
n 10% segment margin
15
Note: Organic revenue growth and segment margin are calculated on Non-GAAP revenue and segment profit.
See Appendix for reconciliation to GAAP.
16
¢ Premier Brand
¢ Global Footprint
¢ Improving Market Fundamentals
¢ Economic recovery
¢ Cash growing worldwide
¢ Interest rates
¢ Compelling Growth Opportunities
¢ Maximize profits in developed markets
¢ Expand in emerging markets
¢ Invest in solutions and adjacent markets
Investment Highlights
16
Appendix
Appendix
Page
5-Year Non-GAAP Revenue Growth 2006 - 2010......................................................19
5-Year Non-GAAP Operating Profit...........................................................................20
Reconciliation to Amounts Reported under GAAP..................................................21
2010 Segment Results, GAAP and non-GAAP...........................................................25
2011 Guidance (Issued February 3, 2011).................................................................27
Organic Revenue
Segment Margin Rate
Non-Segment Items
Tax Rate
Interest Expense
Non-Controlling Interest
Property and Equipment Acquired
Depreciation and Amortization
Legacy Liabilities.........................................................................................................28
18
Non-GAAP Revenue (1)
($MM)
(1) Non-GAAP financial information is reconciled to amounts reported under U.S. GAAP on pages 21, 22 & 23.
Non-GAAP Revenue Growth
19
Total Non-GAAP Operating Profit (1)
($MM)
Segment | 172 | 196 | 223 | 175 | 226 |
Non-Segment | (73) | (62) | (58) | (55) | (59) |
Total | 99 | 134 | 166 | 120 | 167 |
(1) Non-GAAP financial information is reconciled to amounts reported under U.S. GAAP on pages 21, 22 & 23.
Non-GAAP Profit Growth
Amounts may not add due to rounding
20
Non-GAAP Results - Reconciled to Amounts Reported under GAAP
Non-GAAP results described in this presentation are financial measures that are not required by, or presented in accordance with generally
accepted accounting principles (“GAAP”).
accepted accounting principles (“GAAP”).
Purpose of Non-GAAP Information
The purpose of the non-GAAP information is to report our financial information
• without income and expense items described below in 2008, 2009 and 2010,
• as if our results from Venezuela had been translated at the less-favorable parallel exchange rate in 2006, 2007, 2008 and 2009, and
• after adjusting tax expense for items described below.
The non-GAAP information provides information to assist comparability and estimates of future performance. Brink’s believes these
measures are helpful in assessing operations and estimating future results and enable period-to-period comparability of financial
performance. Non-GAAP results should not be considered as an alternative to revenue or income amounts determined in accordance with
GAAP and should be read in conjunction with their GAAP counterparts.
measures are helpful in assessing operations and estimating future results and enable period-to-period comparability of financial
performance. Non-GAAP results should not be considered as an alternative to revenue or income amounts determined in accordance with
GAAP and should be read in conjunction with their GAAP counterparts.
a) To reduce revenues and segment operating income to reflect the 2009, 2008, 2007 and 2006 results of Venezuelan
subsidiaries had they been translated using the parallel currency exchange rate in effect at the time. The average parallel
exchange rate used for the 2009 non-GAAP full-year earnings was 6.0 bolivar fuertes to the U.S. dollar, compared to an
average rate of 2.2 bolivar fuertes to the U.S. dollar that was used for the GAAP financial statements. The official rate of
2.15 bolivar fuertes to the U.S. dollar was used for translation of Venezuela for most of 2009 until the parallel rate was
adopted during December. The use of the weaker rate to translate 2009 non-GAAP revenues and earnings of the
Venezuelan subsidiaries decreased each measure by 63%.
subsidiaries had they been translated using the parallel currency exchange rate in effect at the time. The average parallel
exchange rate used for the 2009 non-GAAP full-year earnings was 6.0 bolivar fuertes to the U.S. dollar, compared to an
average rate of 2.2 bolivar fuertes to the U.S. dollar that was used for the GAAP financial statements. The official rate of
2.15 bolivar fuertes to the U.S. dollar was used for translation of Venezuela for most of 2009 until the parallel rate was
adopted during December. The use of the weaker rate to translate 2009 non-GAAP revenues and earnings of the
Venezuelan subsidiaries decreased each measure by 63%.
b) To reverse remeasurement gains and losses in Venezuela. For accounting purposes, Venezuela is considered a highly
inflationary economy. Under GAAP, subsidiaries that operate in Venezuela record gains and losses in earnings for the
remeasurement of bolivar fuerte-denominated net monetary assets.
inflationary economy. Under GAAP, subsidiaries that operate in Venezuela record gains and losses in earnings for the
remeasurement of bolivar fuerte-denominated net monetary assets.
c) To eliminate loss on exit of Belgium cash-in-transit (CIT) business.
d) To eliminate currency losses incurred in Venezuela related to increases in cash held in U.S. dollars by Venezuelan
subsidiaries. These losses would not have been incurred had the operations been translated at the parallel rate.
subsidiaries. These losses would not have been incurred had the operations been translated at the parallel rate.
e) To eliminate gains/losses recognized related to acquisitions of controlling interests in subsidiaries that were previously
accounted for as equity method or cost method investments.
accounted for as equity method or cost method investments.
f) To eliminate royalty income from Brink’s Home Security.
g) To eliminate certain non-segment gains on sales of assets.
21
See page 21 for explanation of footnotes
Reconciliation
Amounts may not add due to rounding
Non-GAAP Results - Reconciled to Amounts Reported under GAAP (Cont.)
22
(In millions) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||
Non-Segment | ||||||||||
Reported GAAP Basis | $ | (63) | (46) | (43) | (62) | (73) | ||||
Adjustments: | ||||||||||
Venezuela Currency Loss (d) | - | 23 | - | - | - | |||||
Acquisition (Gain) Loss (e) | 9 | (15) | - | - | - | |||||
Royalty from BHS (f) | (5) | (7) | (1) | - | - | |||||
Non-segment asset sales (g) | - | (10) | (13) | - | - | |||||
Non-GAAP Basis | $ | (59) | (55) | (58) | (62) | (73) | ||||
Total Operating Profit | ||||||||||
Reported GAAP Basis | $ | 146 | 167 | 229 | 161 | 111 | ||||
Adjustments: | ||||||||||
Change to Parallel Rate (a) | - | (43) | (49) | (27) | (12) | |||||
Remeasure Vz Net Monetary Assets (b) | 3 | - | - | - | - | |||||
Exit Belgium CIT Business (c) | 13 | - | - | - | - | |||||
Venezuela Currency Loss (d) | - | 27 | - | - | - | |||||
Acquisition (Gain) Loss (e) | 9 | (15) | - | - | - | |||||
Royalty from BHS (f) | (5) | (7) | (1) | - | - | |||||
Non-segment asset sales (g) | - | (10) | (13) | - | - | |||||
Non-GAAP Basis | $ | 167 | 120 | 166 | 134 | 99 |
See page 21 for explanation of footnotes
Reconciliation
Amounts may not add due to rounding
Non-GAAP Results - Reconciled to Amounts Reported under GAAP (Cont.)
23
Net Debt
December 31, | December 31, | |||
2010 | 2009 | |||
Debt: | ||||
Short-term debt | $ | 36.5 | 7.2 | |
Long-term debt | 352.7 | 188.4 | ||
Total Debt | 389.2 | 195.6 | ||
Cash and cash equivalents | 183.0 | 143.0 | ||
Less amounts held by certain Cash Logistics operations (a) | (38.5) | - | ||
Amount available for general corporate purposes | 144.5 | 143.0 | ||
Net Debt | $ | 244.7 | 52.6 |
(a) Title to cash received and processed in certain of our secure cash logistics operations transfers to us for a short period of time.
The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general
corporate purposes in the management of our liquidity and capital resources and in our computation of Net Debt.
The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general
corporate purposes in the management of our liquidity and capital resources and in our computation of Net Debt.
Net Debt is a supplemental financial measure that is not required by, or presented in accordance with GAAP. We use Net Debt as a
measure of our financial leverage. We believe that investors also may find Net Debt to be helpful in evaluating our financial
leverage. Net Debt should not be considered as an alternative to Debt determined in accordance with GAAP and should be
reviewed in conjunction with our consolidated balance sheets. Set forth above is a reconciliation of Net Debt, a non-GAAP
financial measure, to Debt, which is the most directly comparable financial measure calculated and reported in accordance with
GAAP, as of December 31, 2010 and 2009. At December 31, 2010, Net Debt is $251 million excluding cash and debt in
Venezuelan operations.
NET DEBT RECONCILED TO AMOUNTS REPORTED UNDER GAAP
(in millions)
24
2010 Segment Results, GAAP
Organic | Acquisitions/ | Currency | ||||||||||||
2009 | Change | Dispositions (b) | (c) | 2010 | Total | Organic | ||||||||
Revenues: | ||||||||||||||
EMEA | $ | 1,258 | 33 | (45) | (46) | 1,200 | (5%) | 3% | ||||||
Latin America | 905 | 171 | 52 | (250) | 877 | (3%) | 19% | |||||||
Asia Pacific | 79 | 18 | 25 | 5 | 127 | 61% | 23% | |||||||
International | 2,241 | 222 | 32 | (290) | 2,204 | (2%) | 10% | |||||||
North America | 894 | 7 | - | 17 | 918 | 3% | 1% | |||||||
Total | $ | 3,135 | 228 | 32 | (273) | 3,122 | - | 7% | ||||||
Operating profit: | ||||||||||||||
International | $ | 157 | 80 | (4) | (68) | 165 | 5% | 51% | ||||||
North America | 57 | (13) | - | 1 | 44 | (22%) | (24%) | |||||||
Segment operating profit | 213 | 67 | (4) | (67) | 209 | (2%) | 31% | |||||||
Non-segment (a) | (47) | (15) | (24) | 23 | (63) | 34% | 32% | |||||||
Total | $ | 167 | 52 | (28) | (44) | 146 | (12%) | 31% | ||||||
Segment operating margin: | ||||||||||||||
International | 7.0% | 7.5% | ||||||||||||
North America | 6.3% | 4.8% | ||||||||||||
Segment operating margin | 6.8% | 6.7% |
Full Year 2010 vs. 2009
(In millions)
Segment Results - GAAP
See footnotes on page 26.
25
Amounts may not add due to rounding
2010 Segment Results, non-GAAP
(In millions) | Organic | Acquisitions/ | Currency | |||||||||||
2009 | Change | Dispositions (b) | (c) | 2010 | Total | Organic | ||||||||
Revenues: | ||||||||||||||
EMEA | $ | 1,258 | 33 | (45) | (46) | 1,200 | (5%) | 3% | ||||||
Latin America | 667 | 100 | 52 | 59 | 877 | 32% | 15% | |||||||
Asia Pacific | 79 | 18 | 25 | 5 | 127 | 61% | 23% | |||||||
International | 2,003 | 150 | 32 | 19 | 2,204 | 10% | 8% | |||||||
North America | 894 | 7 | - | 17 | 918 | 3% | 1% | |||||||
Total | $ | 2,897 | 157 | 32 | 36 | 3,122 | 8% | 5% | ||||||
Operating profit: | ||||||||||||||
International | $ | 118 | 49 | 9 | 6 | 181 | 53% | 41% | ||||||
North America | 57 | (13) | - | 1 | 44 | (22%) | (24%) | |||||||
Segment operating profit | 175 | 35 | 9 | 7 | 226 | 29% | 20% | |||||||
Non-segment (a) | (55) | (4) | - | - | (59) | 6% | 6% | |||||||
Total | $ | 120 | 32 | 9 | 7 | 167 | 39% | 26% | ||||||
Segment operating margin: | ||||||||||||||
International | 5.9% | 8.2% | ||||||||||||
North America | 6.3% | 4.8% | ||||||||||||
Segment operating margin | 6.0% | 7.2% |
(a) Includes income and expense not allocated to segments.
(b) Includes operating results and gains/losses on acquisitions, sales and exit of businesses.
(c) Revenue and Segment Operating Profit: The “Currency” amount in the table is the summation of the monthly currency changes, plus (minus) the U.S. dollar amount of
remeasurement currency gains (losses) of bolivar fuerte-denominated net monetary assets recorded under highly inflationary accounting rules in 2010 related to the Venezuelan
operations. The monthly currency change is equal to the Revenue or Operating Profit for the month in local currency, on a country-by-country basis, multiplied by the difference
in rates used to translate the current period amounts to U.S. dollars versus the translation rates used in the year-ago month. The functional currency in Venezuela was the
bolivar fuerte in 2009, and became the U.S. dollar in 2010 under highly inflationary accounting rules. Remeasurement gains and losses under these rules in 2010 are recorded
in U.S. dollars but these gains and losses are not recorded in local currency. Local currency Revenue and Operating Profit in 2010 used in the calculation of monthly currency
change for Venezuela have been derived from the U.S. dollar results of the Venezuelan operations under U.S. GAAP (excluding remeasurement gains and losses) using current
period currency exchange rates. Non-Segment Operating Profit: The “Currency” amount in the table is the 2009 losses incurred in Venezuela related to increases in cash
held in U.S. dollars by Venezuela subsidiaries.
remeasurement currency gains (losses) of bolivar fuerte-denominated net monetary assets recorded under highly inflationary accounting rules in 2010 related to the Venezuelan
operations. The monthly currency change is equal to the Revenue or Operating Profit for the month in local currency, on a country-by-country basis, multiplied by the difference
in rates used to translate the current period amounts to U.S. dollars versus the translation rates used in the year-ago month. The functional currency in Venezuela was the
bolivar fuerte in 2009, and became the U.S. dollar in 2010 under highly inflationary accounting rules. Remeasurement gains and losses under these rules in 2010 are recorded
in U.S. dollars but these gains and losses are not recorded in local currency. Local currency Revenue and Operating Profit in 2010 used in the calculation of monthly currency
change for Venezuela have been derived from the U.S. dollar results of the Venezuelan operations under U.S. GAAP (excluding remeasurement gains and losses) using current
period currency exchange rates. Non-Segment Operating Profit: The “Currency” amount in the table is the 2009 losses incurred in Venezuela related to increases in cash
held in U.S. dollars by Venezuela subsidiaries.
Amounts may not add due to rounding
26
2011 Guidance
Revenue: Mid-to-high single-digit percentage organic growth over 2010
Segment Margin: High end of 6.5% to 7.0% (includes 2010 acquisitions)
Amounts may not add due to rounding.
(a) Non-GAAP reflects the elimination of royalties from former home security unit in 2010.
(b) Amount is the net of $14 million remeasurement loss on our previously held noncontrolling interest in SPP and a $5 million bargain purchase gain related to the
acquisition of a controlling interest in SPP.
(c) The 2011 estimate includes $30 million related to Mexico acquisition.
27
Legacy Liabilities
Estimated Contributions to U.S. Plans | ||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||
US Pension | $ 0 | 36 | 34 | 30 | 27 | |||||
UMWA | 0 | 0 | 0 | 0 | 0 | |||||
Black Lung/Other | 8 | 7 | 7 | 7 | 6 | |||||
Total | $ 8 | 43 | 41 | 37 | 33 |
($ millions)
Under-
funding
funding
$192
Note: Amounts based on actuarial assumptions at December 31, 2010.
28