Summary of Brink's Company and NCR Atleos Acquisition Conference Call Company and Industry Overview - **Companies Involved**: Brink's Company (NYSE: BCO) and NCR Atleos - **Industry**: Financial technology infrastructure, specifically focusing on ATM management and cash logistics Key Points and Arguments Acquisition Announcement - Brink's announced a proposed acquisition of NCR Atleos for **$6.6 billion**[3] - The transaction is subject to regulatory approvals and shareholder approvals from both companies[3] Financial Performance - Brink's reported strong fourth quarter and full year 2025 results, achieving metrics at or above guidance[5] - Brink's generated **$436 million** in free cash flow in 2025[5] - The combined company is expected to have total revenue of approximately **$10 billion** and adjusted EBITDA of around **$2 billion**, with EBITDA margins approaching **20%**[8] Strategic Rationale - The acquisition aims to create a leading financial technology infrastructure company by combining Brink's cash management expertise with NCR Atleos' ATM management capabilities[6][13] - The deal is expected to enhance service offerings for both banking and retail customers, addressing the growing demand for comprehensive cash management solutions[6][9] Synergies and Financial Benefits - Expected annual run rate cost synergies of **$200 million** within three years, primarily from duplicative SG&A costs and shared networks[10][26] - The acquisition is projected to be at least **35% accretive** to EPS in the first year and generate approximately **$1 billion** in free cash flow[10][30] - The purchase price reflects a **7x multiple** on NCR Atleos' 2026 adjusted EBITDA, reducing to below **6x** when factoring in expected synergies[10] Market Opportunities - The combined capabilities will allow for better service to a global service base of **600,000 ATMs**, enhancing growth in digital retail solutions[9][24] - The acquisition is expected to drive significant growth in ATM outsourcing services, which are increasingly being adopted by financial institutions and retailers[21][22] Operational Integration - Both companies have a history of collaboration, which is expected to facilitate a smoother integration process[12] - The focus will be on optimizing service delivery and reducing costs through a more integrated approach to ATM management and cash logistics[20][70] Long-term Growth Outlook - The combined entity anticipates maintaining a mid-single-digit organic growth rate, with potential for higher growth driven by enhanced service offerings and market demand for outsourcing[44][51] - The integration is expected to streamline operations, improve service levels, and enhance customer satisfaction, ultimately driving higher revenue[56][76] Additional Important Content - The call emphasized the importance of maintaining operational focus during the integration process to avoid distractions from day-to-day business[73] - Both companies are committed to maximizing shareholder value through effective capital allocation and debt reduction strategies post-acquisition[28][34] This summary captures the essential details and strategic insights from the conference call regarding the acquisition of NCR Atleos by Brink's Company, highlighting the financial implications, market opportunities, and operational strategies involved in the transaction.

Financial Data and Key Metrics Changes - Brink's reported strong fourth quarter and full year 2025 results, meeting or exceeding guidance on all metrics, with a free cash flow of $436 million and an adjusted EBITDA margin expansion of 40 basis points [5][10] - The combined company is expected to achieve total revenue of approximately $10 billion and adjusted EBITDA of approximately $2 billion, with adjusted EBITDA margins approaching 20% [8][19] Business Line Data and Key Metrics Changes - Significant organic growth was noted in ATM Managed Services and Digital Retail Solutions, contributing to the overall performance [5][31] - The acquisition of NCR Atleos is expected to enhance the combined business's capabilities across the ATM ownership value chain, improving service offerings and operational efficiencies [20][24] Market Data and Key Metrics Changes - The acquisition is anticipated to create a global service base of 600,000 ATMs, enhancing opportunities in major markets and expanding the addressable market for cash management solutions [9][24] - The combined entity aims to optimize cost structures and improve service levels, addressing the growing demand for outsourced cash management solutions [21][23] Company Strategy and Development Direction - The strategic rationale behind the acquisition focuses on creating a leading financial technology infrastructure company that enhances customer service and drives innovation [7][14] - The combined business will focus on increasing subscription-based recurring revenue, providing a more predictable growth profile and capitalizing on the trend of bank outsourcing [19][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the combined financial profile, with expectations for mid-single-digit organic revenue growth and significant cash generation potential [8][28] - The management team highlighted the importance of maintaining operational focus during the integration process to ensure continued performance and value creation [70][71] Other Important Information - The acquisition is valued at approximately $6.6 billion, with a purchase price reflecting a 7x multiple on NCR Atleos' 2026 adjusted EBITDA, expected to be at least 35% accretive to EPS in the first year [10][29] - The transaction is subject to customary closing conditions, including regulatory approvals and shareholder approvals from both companies [3][30] Q&A Session Summary Question: Details on expected $200 million in cost synergies - Management indicated that over $100 million would come from SG&A savings, with additional savings from shared networks and procurement efficiencies [36][39] Question: Potential upside from revenue synergies - Management acknowledged the opportunity for organic growth to exceed mid-single digits due to the strategic benefits of the combination, particularly in ATM outsourcing and managed services [41][45] Question: Long-term growth expectations for DRS/AMS business - Management expects mid-double digit organic growth to continue, leveraging the combined capabilities to enhance customer service and drive outsourcing [49][51] Question: Cross-sell opportunities in the DRS business - Management noted that NCR Atleos' extensive retail footprint presents significant cross-sell opportunities, particularly in locations where both companies already operate [57][59] Question: Risks associated with the acquisition - Management highlighted the risk of distraction during the integration process but emphasized the importance of maintaining operational focus [69][70]

Creating a Leader in Financial Technology Infrastructure February 26, 2026 Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "assume," "could," "estimate," "expect," "target," "possible," "project," "predict," "intend," "plan," "believe," "potential," "may," "should", "will" and similar expressions are based on current expectations and assumptions a ...

Core Insights - The Brink's Company has appointed Adrian Button as executive vice president and president of Brink's North America, effective immediately [1] - Adrian Button brings over 30 years of global operational leadership experience, having held senior roles at General Electric, NCR Corporation, and Carrier Corporation [2][3][4] - Button's leadership is expected to enhance operational excellence and customer value, aligning with Brink's growth and profit expansion strategy in North America [5] Company Overview - The Brink's Company is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services, serving customers in over 100 countries [6] - The company's clientele includes financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations [6]

Financial Data and Key Metrics Changes - Brink's reported Q3 2025 revenue of over $1.3 billion, a 6% increase, with 5% organic growth and a 1% foreign currency tailwind [18] - Adjusted EBITDA rose 17% to $253 million, with operating profit up 24% [18] - EBITDA margins reached a record 19%, up 180 basis points year-over-year, driven by strong productivity and a favorable revenue mix [5][18] Business Line Data and Key Metrics Changes - The ATM Managed Services and Digital Retail Solutions (AMS DRS) segment saw organic growth accelerate from 16% in Q2 to 19% in Q3, now accounting for 28% of total revenue [5][11] - Cash and Valuables Management (CVM) organic growth remained consistent, but was impacted by the conversion of existing customers to AMS DRS, accounting for a 2-3 percentage point headwind [10][31] Market Data and Key Metrics Changes - The company is experiencing healthy organic growth across all geographic segments, with notable performance in North America and Latin America [11][29] - The penetration rate for ATM outsourcing remains low, indicating significant growth opportunities in both existing and new markets [13] Company Strategy and Development Direction - Brink's is focused on delivering organic growth primarily from higher-margin subscription-based services, with a strategic shift towards AMS DRS [7][10] - The company aims to maximize shareholder value through disciplined capital allocation, including share repurchase programs [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of AMS DRS, citing a healthy pipeline and strong customer conversions [27][28] - The company anticipates continued margin improvement and cash generation, with a commitment to return at least 50% of free cash flow to shareholders [9][25] Other Important Information - Free cash flow for Q3 was $175 million, a year-over-year increase of 30%, with a trailing 12-month conversion rate of 50% of adjusted EBITDA [6][18] - The net debt to EBITDA leverage ratio was reduced to 2.9 times, within the targeted range [9][22] Q&A Session Summary Question: Can you elaborate on the client traction you're seeing in both AMS and DRS? - Management noted good visibility into Q4 and the first half of next year, with strong growth in both AMS and DRS, particularly in North America and Latin America [27][28] Question: What trends are seen in the CVM business? - The CVM business experienced flat organic growth, primarily due to customer conversions to AMS DRS, which accounted for a headwind [31] Question: What internal strategies are driving growth in AMS DRS? - The company has expanded its incentive compensation plans to align more employees with AMS DRS growth, and is also exploring partnerships with channel partners to enhance sales [36][41] Question: How should investors think about North America margin potential? - Management indicated that North America margins have improved significantly, driven by a better AMS DRS mix, disciplined pricing, and operational execution, with expectations for continued margin expansion [42][46] Question: What are the midterm goals for free cash conversion from EBITDA? - The company aims for a conversion rate of 40-45%, supported by improvements in DSO and capital efficiency [49][51] Question: How does bank consolidation impact the business? - Management views bank consolidation as an opportunity for AMS solutions, providing potential cost synergies for consolidating banks [60][62]

Financial Performance Highlights - The company reported strong organic revenue growth of 5% in Q3 2025, driven by accelerating AMS/DRS growth[6] - AMS/DRS organic growth was 19% in Q3 2025, contributing to 28% of the total revenue mix[6] - Adjusted EBITDA margin reached a record 19% in Q3 2025, an increase of 180 basis points[6] - Free cash flow grew by 30% in Q3 2025, reaching $175 million[6] - The company utilized $154 million YTD to repurchase 17 million shares at $8905 per share[8] Growth Strategy and Outlook - The company is increasing its revenue mix expectation for AMS/DRS to 27-28%[13] - North America Adjusted EBITDA margins have expanded 370bps since 2022 and +190bps YTD[20] - The company's Q3 2025 revenue increased by 6% to $1335 million, with organic growth contributing 5%[23, 26] - Adjusted EBITDA increased by 17% to $253 million, with a margin of 19%[23] - The company projects full-year organic revenue growth of approximately 5% and Adjusted EBITDA margin expansion of 30-50 basis points[36]

Financial Performance & Growth Strategy - Brink's aims to grow organically by expanding ATM Managed Services (AMS) and Digital Retail Solutions (DRS) subscription-based recurring revenue[10] - The company is targeting mid-to-high teens organic growth in AMS/DRS over the mid-term[27, 28] - Brink's expects to expand profit margins by shifting revenue to AMS/DRS and driving cost productivity[10] - The company is focused on improving free cash flow conversion by expanding profit margins, reducing capital intensity, and shortening the cash cycle[10] - Brink's aims to maximize shareholder value through accretive capital allocation, targeting at least 50% of free cash flow to shareholder returns[11, 38] AMS/DRS Expansion & Market Opportunity - AMS/DRS expands Brink's addressable market by 2-3x, targeting retailers with over $5,000 cash per month and the remaining bank ATMs to be outsourced[17] - The company's network optimization with conversion to AMS/DRS results in reduced miles driven and process efficiency[22] - AMS/DRS is delivering growth and margin improvement, with AMS/DRS projected to be 24% of total revenue in 2025, up from 10% in 2020[24] 2025 Outlook - For the second quarter of 2025, Brink's projects total revenue between $1.25 billion and $1.3 billion, with organic growth of 3%-6%[47] - The adjusted EBITDA for Q2 2025 is expected to be between $205 million and $225 million, with a margin of approximately 16.9%[47] - The company anticipates earnings per share (EPS) for Q2 2025 to be in the range of $1.25 to $1.65[47]

First-Quarter 2025 Performance - Revenue increased by 1% to $1,247 million, with organic growth of 6%[11] - Adjusted EBITDA decreased by 1% to $215 million, representing a margin of 17.2%[11] - Earnings per share (EPS) decreased by 2% to $1.62, but increased by 13% in constant currency[11] - Trailing-twelve-month Free Cash Flow was $360 million, reflecting a conversion rate of 40%[9, 11] Segment Performance - North America revenue increased by 3% to $418 million, with adjusted EBITDA up 6% to $73 million[15] - Latin America revenue decreased by 8% to $308 million, with adjusted EBITDA down 14% to $67 million[15] - Europe revenue increased by 3% to $299 million, with adjusted EBITDA remaining flat at $40 million[15] - Rest of World revenue increased by 9% to $222 million, with adjusted EBITDA up 20% to $57 million[15] Strategic Growth & Outlook - AMS/DRS organic growth exceeded 20%, now representing 25% of total revenue[9] - The company repurchased over 1.3 million shares year-to-date[9] - Second quarter guidance includes revenue between $1,250 million and $1,300 million, with organic growth between 3% and 6%[9]