Brinks Co (BCO) 2023 Q4 法說會逐字稿

Good day and welcome to The Brink's Company fourth quarter and full year 2023 earnings call. This morning, Brink's issued a press release detailing its fourth quarter and full year 2023 results. The company also filed an 8-K that includes the release and the slides that will be used in today's call. The release and slides are available in the Investor Relations section of the company's website at investors.brinks.com.

美好的一天，歡迎參加 The Brink's Company 2023 年第四季和全年財報電話會議。今天上午，Brink's 發布了一份新聞稿，詳細介紹了其第四季度和 2023 年全年業績。該公司還提交了一份 8-K，其中包括新聞稿和將在今天的電話會議中使用的幻燈片。該新聞稿和幻燈片可在該公司網站investor.brinks.com 的投資者關係部分取得。

(Operator Instructions) As a reminder, this conference is being recorded and will be available for replay. This call and the Q&A session will contain forward-looking statements and actual results could differ materially from projected or estimated results. Information regarding factors that could cause. Such differences are available in the footnotes of today's press release and in the company's most recent SEC filings. Information presented and discussed on this call is representative of today only Brink's assumes no obligation to update any forward-looking statements. The call is copyrighted and may not be used without written permission from Brink's.

（操作員說明）謹此提醒，本次會議正在錄製中，可供重播。本次電話會議和問答環節將包含前瞻性陳述，實際結果可能與預期或估計結果有重大差異。有關可能導致的因素的資訊。這些差異可以在今天新聞稿的腳註和該公司最近向 SEC 提交的文件中找到。本次電話會議中提供和討論的資訊僅代表當前情況，僅 Brink's 不承擔更新任何前瞻性陳述的義務。該通話受版權保護，未經 Brink's 書面許可不得使用。

I will now turn the call over to your host, Jesse Jenkins, Vice President of Investor Relations. Mr. Jenkins, you may begin.

現在我將把電話轉給主持人投資者關係副總裁傑西·詹金斯 (Jesse Jenkins)。詹金斯先生，您可以開始了。

Thanks and good morning. Joining me today are CEO, Mark Eubanks and CFO, Kurt McMaken, and this morning, Brink's reported full year 2023 results on a GAAP non-GAAP and constant currency basis. Most of our comments today will be focused on our non-GAAP results because we believe these results make it easier for investors to assess operating performance between periods. Reconciliations of non-GAAP results to their most comparable GAAP results are provided in the press release. The appendix of the presentation and in this morning's 8-K filing.

謝謝，早安。今天與我一起出席的有首席執行官 Mark Eubanks 和首席財務官 Kurt McMaken，今天早上，Brink's 報告了按 GAAP 非 GAAP 和固定匯率計算的 2023 年全年業績。我們今天的大部分評論將集中在我們的非公認會計準則績效上，因為我們相信這些業績使投資者更容易評估不同時期的經營績效。新聞稿中提供了非公認會計原則（non-GAAP）結果與最具可比性的公認會計原則（GAAP）結果的調節表。簡報的附錄和今天早上的 8-K 文件。

I will now turn the call over to Brink's CEO, Mark Eubanks.

我現在將把電話轉給 Brink 的執行長 Mark Eubanks。

Thanks, Jesse. Good morning and thanks for joining us. Starting with the fourth quarter.

謝謝，傑西。早安，感謝您加入我們。從第四季開始。

On slide 3, we delivered total growth of 5% with organic growth of 9%. The organic growth was driven by strong pricing discipline and 17% growth in AMS. and DRS. revenue. Profit margins were impacted by geopolitical and economic pressures in certain markets and lower than expected growth in high-margin services in North America. Q4 operating profit was $190 million with a margin of 15.2% and adjusted EBITDA of $252 million with a margin of 20.2%. Eps was up 31% to $2.76 per share, benefiting from a few unique items in the quarter that Curt will discuss later in more detail. We also delivered another strong quarter of improvement in free cash flow on our way to a record year. Free cash flow was up 36% from the prior year with sustainable conversion improvement to a rate of 70% in the quarter.

在幻燈片 3 上，我們實現了 5% 的總成長和 9% 的有機成長。有機成長是由嚴格的定價紀律和 AMS 17% 的成長推動的。和 DRS。收入。利潤率受到某些市場地緣政治和經濟壓力以及北美高利潤服務成長低於預期的影響。第四季營業利潤為 1.9 億美元，利潤率為 15.2%，調整後 EBITDA 為 2.52 億美元，利潤率為 20.2%。每股盈餘上漲 31%，至每股 2.76 美元，受益於本季的一些獨特項目，柯特稍後將更詳細地討論這些項目。我們的自由現金流也實現了另一個強勁的季度改善，邁向創紀錄的一年。本季自由現金流較上年增長 36%，轉換率可持續提高至 70%。

Moving to the full year, revenue was in line with expectations with 9% organic growth, approximately 40% of that growth came from AMSDRS. revenue, which was up 21% organically in the year. Adjusted EBITDA was 867 million with a margin of 17.8%, expansion of 40 basis points. Full year EPS improved $1.36 to $7.35 per share. We do have record free cash flow through record EBITDA, improve working capital and a reduction in CapEx as a percentage of revenue as well as lower cash taxes for the full year, free cash flow nearly doubled to $393 million with 45% cash conversion of adjusted EBITDA 2023 reflects consistent progress executing against our strategic initiatives. We ended 23 with over $1 billion or 21% of our revenue now represented by higher margin AMS. and DRS. offerings. This improved revenue mix and cost productivity across the business led to expanded profit margins. For the full year, we delivered record free cash flow through increased focus and operational discipline at all levels of the organization. We also increased our financial flexibility by reducing leverage to 2.9 times within our target range of two to three times. And finally, we returned over 200 million of capital to our shareholders through the repurchase of 2.3 million shares of common stock as well as our dividend, which was increased 10% in May of 2023. As we look forward to 2024, our guidance represents continued progress on our key objectives. We expect revenue growth in the mid-single digits with low to mid 10s organic growth and another year of double-digit growth in AMS. and DRS. We expect adjusted EBITDA to be between 935 and $985 million with margin expansion of 80 basis points at the midpoint, driven by strong revenue growth, continued revenue mix improvement and cost productivity initiatives. Eps is expected to be between $7.30 and $8 per share. And free cash flow is expected to grow to between 415 and $465 million with conversion at the midpoint of approximately 46%. We'll provide more detail on the guidance later in the presentation.

展望全年，營收有機成長 9%，符合預期，其中約 40% 的成長來自 AMSDRS。收入年內有機成長 21%。調整後 EBITDA 為 8.67 億美元，利潤率為 17.8%，擴大 40 個基點。全年每股收益提高 1.36 美元至 7.35 美元。我們確實透過創紀錄的EBITDA 實現了創紀錄的自由現金流，改善了營運資本，降低了資本支出佔收入的比例，並降低了全年的現金稅，自由現金流幾乎翻了一番，達到3.93億美元，調整後的現金轉換率為45% 2023 年 EBITDA 反映了我們策略性舉措執行的持續進展。23 月底，我們的收入超過 10 億美元，占我們收入的 21%，現在由利潤率更高的 AMS 代表。和 DRS。供品。整個業務收入結構和成本生產力的改善導致利潤率擴大。透過加強組織各層面的關注和營運紀律，我們全年創造了創紀錄的自由現金流。我們也透過將槓桿率降低至 2.9 倍（在 2 至 3 倍的目標範圍內）來提高財務靈活性。最後，我們透過回購 230 萬股普通股以及股利（2023 年 5 月增加了 10%）向股東返還了超過 2 億的資本。展望 2024 年，我們的指導代表了我們在關鍵目標上的持續進展。我們預計營收將實現中個位數成長，有機成長將達到 10 左右，AMS 又將實現兩位數成長。和 DRS。我們預計調整後的 EBITDA 將在 935 至 9.85 億美元之間，中間利潤率將增長 80 個基點，這得益於強勁的收入增長、持續的收入組合改善和成本生產力舉措。每股收益預計在 7.30 美元至 8 美元之間。自由現金流預計將成長至 41.5 至 4.65 億美元，中間轉換率約為 46%。我們將在稍後的演示中提供有關該指南的更多詳細資訊。

Turning to slide 4. Our full year performance demonstrates good progress against our goals total revenue in 2023 was in line with our expectations with 9% organic revenue growth and a 2% contribution from M&A, partially offset by 4% headwind from FX. I'll go into much more detail on revenue and operating profit by segment on the next slide. Adjusted EBITDA was up about 80 million due to the flow-through of higher revenue good pricing leverage and cost productivity, which includes restructuring savings from the program that we announced late in 2022. Earnings per share was $7.35 per share reflecting the flow-through of higher net income and a reduced share count. Our focus on free cash flow led to a $190 million increase year over year, reflecting improved working capital and lower cash taxes that more than offset the higher cash interest cover. We'll have more specifics on the free cash flow cadence and expectations into next year on to slide 5, I'd like to take a moment here to discuss the segment level performance in both the full year and fourth quarter, starting with North America. On the left side, organic revenue growth of 1% for the full year includes an organic decline of 2% in the fourth quarter.

轉到投影片 4。我們的全年業績表明，我們在實現目標方面取得了良好進展，2023 年總收入符合我們的預期，有機收入增長 9%，併購貢獻 2%，部分被外匯帶來的 4% 阻力所抵消。我將在下一張投影片中詳細介紹按部門劃分的收入和營業利潤。由於更高的收入、良好的定價槓桿和成本生產率的流入，調整後的 EBITDA 增長了約 8000 萬，其中包括我們在 2022 年末宣布的計劃中的重組節省。每股收益為 7.35 美元，反映出淨利潤增加和股票數量減少。我們對自由現金流的關注導致年增 1.9 億美元，反映出營運資本的改善和現金稅的降低，足以抵銷較高的現金利息保障。我們將在投影片 5 上詳細介紹明年的自由現金流節奏和預期，我想花點時間討論全年和第四季的細分市場表現，從北美開始。左側，全年有機收入成長 1%，其中第四季有機收入下降 2%。

The quarter was impacted by the portfolio rationalization we discussed in Q2 and the lower volume growth from our global services revenue. There were also several large new DRS. customers that delayed device installations from the Q4 peak retail season into and into 2024. As we look at the year, we're well positioned to accelerate our DRS. revenue in the North American market as we convert our backlog to revenue. We continue to make progress on a robust sales pipeline that's up over 50% year on year with a much more mature outlook than a year ago. Operating profit in North America was up 160 basis points on the year to a record of 11.6%. Good pricing efforts, portfolio rationalization and cost productivity, especially in direct labor were the main drivers of the margin expansion despite the revenue mix headwinds that we saw in Q4. We also continue to make good progress on our safety and quality initiatives with Q4 total recordable incidents at the lowest it's been in the last three years and quality scores that improved year over year again this quarter.

該季度受到我們在第二季度討論的投資組合合理化以及全球服務收入成長放緩的影響。還有幾個大型的新 DRS。將設備安裝從第四季零售旺季推遲到 2024 年的客戶。回顧這一年，我們已經做好了加速 DRS 的準備。當我們將積壓訂單轉化為收入時，北美市場的收入。我們在強勁的銷售管道方面繼續取得進展，年增超過 50%，前景比一年前更加成熟。北美地區的營業利潤年增 160 個基點，達到創紀錄的 11.6%。儘管我們在第四季度看到了收入組合的不利因素，但良好的定價努力、投資組合合理化和成本生產力（尤其是直接勞動力）是利潤率擴張的主要驅動力。我們也持續在安全和品質措施方面取得良好進展，第四季可記錄事故總數達到過去三年來的最低水平，本季品質分數再次較去年同期提高。

In Latin America, strong organic revenue growth in Q4 and the full year was driven by our pricing efforts to offset inflation as well as strong DRS and AMS revenue growth, geopolitical and economic headwinds in several countries and South America, including the impact of the currency devaluation in Argentina, impacted profitability in the fourth quarter and the full year. As we discussed previously, we continue to experience economic headwinds in Brazil, the country has taken action to spur the economy as evidenced by the five consecutive interest rate cuts, and we feel good about our outlook. Our local team are offsetting these impacts through our continued shift to AMS. and DRS. revenue, which was strong and acute in Q4. And we continue to streamline our cost structure to match the demand shifts.

在拉丁美洲，第四季度和全年有機收入的強勁增長是由我們抵消通貨膨脹的定價努力以及強勁的DRS 和AMS 收入增長、多個國家和南美洲的地緣政治和經濟逆風（包括貨幣的影響）推動的阿根廷貨幣貶值影響了第四季和全年的獲利能力。正如我們之前討論的，我們在巴西繼續經歷經濟逆風，該國已採取行動刺激經濟，連續五次降息就是明證，我們對前景感覺良好。我們的本地團隊正在透過繼續轉向 AMS 來抵消這些影響。和 DRS。第四季的營收強勁而敏銳。我們持續簡化成本結構以適應需求變化。

Looking at 2024, we have a strong business in Latin America, good momentum on DRS. and AMS. in the region and are encouraged with our outlook despite a forecasted impact in Argentina from the recent devaluation, Europe has performed well in 2023 as they had success with DRS. and AMS. early in the year and have driven growth in both of these areas throughout the year. Strong growth in these higher margin areas has helped profit margins expand by 40 basis points in the year despite the economic backdrop, with several new CMS contracts set to come online in early 2024 and similar to North America IDRS. pipeline that's up 50% year on year. We feel really good about the trajectory of the segment next year.

展望2024年，我們在拉丁美洲的業務強勁，DRS勢頭良好。和 AMS。儘管阿根廷近期的貶值預計會產生影響，但我們的前景令人鼓舞，但歐洲在 2023 年表現良好，因為他們在 DRS 方面取得了成功。和 AMS。年初，並推動了這兩個領域的全年成長。儘管經濟背景不佳，但這些利潤率較高領域的強勁增長幫助今年的利潤率擴大了 40 個基點，幾項新的 CMS 合約將於 2024 年初上線，與北美 IDRS 類似。管道數量較去年同期增加50%。我們對明年該細分市場的發展軌跡感到非常滿意。

In the Rest of the World segment, we realized modest growth in March and margin expansion in the year. As we previously discussed, our global services business, which represents more than half of the revenue in this segment, was impacted by the slowdown in the movement and storage of commodities worldwide. We're encouraged by nice recovery. We've seen in BGS. late in the year, and we continue to see that here in Q1. Drs has done well, and the AMS. pipeline in the region is very active with several ongoing pilots with the growth of DRS. base in 2023, we are targeting margin expansion in this segment next year. So far this year, we've seen a recovery in our BGS. business outside of North America and accelerating progress in DRS in all regions highlighted by North America. I'm encouraged by the strong progress on our strategy as evidenced by the growth we delivered in AMS. and DRS. in both the fourth quarter and full year as green as we continue on this growth trajectory, our business will naturally shift to a larger base of predictable, higher margin recurring revenue business mix as we exit 23 RAMSDRS. revenue makes up 21% of our total revenue over the long term. We feel good about our ability to continue to increase that percentage going forward.

在世界其他地區，我們在 3 月實現了小幅成長，並在今年實現了利潤率擴張。正如我們之前討論的，我們的全球服務業務佔該領域收入的一半以上，受到全球商品運輸和儲存放緩的影響。我們對良好的恢復感到鼓舞。我們在 BGS 中看到過。今年晚些時候，我們在第一季繼續看到這種情況。Drs 做得很好，AMS 也做得很好。隨著 DRS 的發展，該地區的管道非常活躍，有幾個正在進行的試點。以 2023 年為基礎，我們的目標是明年擴大該領域的利潤率。今年到目前為止，我們已經看到 BGS 的復甦。北美以外的業務，並加速北美地區所有地區 DRS 的進展。我對我們的策略取得的強勁進展感到鼓舞，AMS 的成長就證明了這一點。和 DRS。在第四季度和全年，隨著我們繼續沿著這一成長軌跡，我們的業務將自然地轉向更大基礎的可預測、更高利潤的經常性收入業務組合，因為我們退出了 23 RAMSDRS。從長遠來看，收入占我們總收入的21%。我們對未來繼續提高這一百分比的能力感到滿意。

On Slide 6, you can see the EBITDA performance over time, including the midpoint of our 2024 guidance. The Company has performed very consistently through challenging economic cycles. The 14% kegger is well ahead of our revenue cadence over the same period as we continue to make strides increasing our margin profile on average EBITDA margins have expanded by more than 80 basis points annually, and that aligns with our expectations for next year.

在投影片 6 上，您可以看到一段時間內的 EBITDA 表現，包括我們 2024 年指導的中點。在充滿挑戰的經濟週期中，該公司的表現非常穩定。14% 的成長速度遠遠領先我們同期的營收節奏，因為我們繼續大步提高利潤率，平均 EBITDA 利潤率每年增長超過 80 個基點，這與我們對明年的預期一致。

There are several drivers of margin expansion, starting with the work we've done to improve our revenue mix since 2020, we have nearly tripled the size of our AMS. and RS. recurring revenue base, growing the business by over 600 million incrementally in 2024. We expect another double-digit organic growth year in these higher margin offerings as we continue to convert and penetrate the retail market for DRS. as well as help financial institutions and intimate independent ATM operators simplify their ATM ownership and operation through our AMS offering. Operationally, we continue to drive waste out of the system through the Brink's business system. We do it. We're doing this by leveraging lean philosophies and sharing best practices across our across our global branch network as we continue to unlock savings opportunities.

利潤率擴張有幾個驅動因素，從 2020 年以來我們為改善收入組合所做的工作開始，我們的 AMS 規模幾乎增加了兩倍。和RS。經常性收入基礎，到 2024 年業務增量將成長超過 6 億美元。隨著我們繼續轉換和滲透 DRS 零售市場，我們預計這些利潤率較高的產品將在今年實現兩位數的有機成長。以及透過我們的 AMS 產品幫助金融機構和親密的獨立 ATM 營運商簡化其 ATM 所有權和營運。在營運上，我們繼續透過 Brink 的業務系統將廢棄物排出系統。我們做到了。我們透過利用精益理念並在我們的全球分支機構網路中分享最佳實踐來實現這一目標，同時繼續釋放節省機會。

We've also recently started a transformation of our North American business that we expect to eventually scale globally. The transformation is focused on commercial and operational excellence as well as support function optimization. Even with the record margin performance in North America, we realized we have significant room to continue and expand our margins. The transformation supports our margin expansion efforts in 2024 as well as the years beyond. We remain focused on our midterm goal of approximately 20% EBITDA margins across the business and believe we have a clear path to continued margin expansion.

我們最近也開始對北美業務進行轉型，我們預計最終將擴大到全球範圍。此次轉型的重點是商業和卓越營運以及支援功能優化。儘管北美的利潤率表現創紀錄，但我們意識到我們還有很大的空間來繼續並擴大我們的利潤率。此次轉型支持我們在 2024 年及以後幾年擴大利潤率的努力。我們仍然專注於整個業務的 EBITDA 利潤率約為 20% 的中期目標，並相信我們有一條明確的持續利潤率擴張之路。

Turning to slide 7, I'd like to take a moment to touch on the development in each of the customer offerings, starting with cash and valuables management. We saw good growth in the fourth quarter, driven by disciplined pricing efforts, which more than covered our inflation in all segments. As I mentioned earlier, we did experience headwinds in our GS. business due to elevated interest rates and market trends globally. We've made good progress, instilling a culture of lean into our operations and are driving cost productivity throughout the organization. And across the network. Drs was up sequentially from the third quarter on strong growth in Europe due to the onboarding of several new customers in the quarter. North America was up sequentially as well. Despite the impact of several larger customers delaying installations out of Q4 into 2024. I'm encouraged by the improvement in the pace of installations early this year with several day setting record highs and the month of February has been our best on record. Our sales pipelines in all regions are up approximately 50% versus the same time last year. Ams also had a successful year of progress as we establish our global team and increased our visibility with customers. Over the year, we developed several key wins in both Latin America and Europe as we continue to build scale and improve our service levels in AMS, I'm encouraged that we remain on the right path when I see the size of our pipeline and the various pilot programs we have going on across the globe.

轉向投影片 7，我想花點時間談談每個客戶產品的發展，從現金和貴重物品管理開始。在嚴格的定價努力的推動下，我們在第四季度實現了良好的成長，這超出了我們所有領域的通膨水平。正如我之前提到的，我們的 GS 確實遇到了阻力。由於利率上升和全球市場趨勢而導致的業務。我們已經取得了良好的進展，將精益文化灌輸到我們的營運中，並正在推動整個組織的成本生產力。並且透過網路。由於本季引入了幾位新客戶，歐洲市場出現強勁成長，Drs 較第三季連續成長。北美地區也連續上漲。儘管受到一些較大客戶的影響，將安裝從第四季度推遲到 2024 年。我對今年年初安裝速度的改善感到鼓舞，有幾天創下了歷史新高，二月是我們有史以來最好的月份。我們在所有地區的銷售管道比去年同期成長了約 50%。隨著我們建立全球團隊並提高我們在客戶中的知名度，艾邁斯半導體也取得了成功的一年。一年來，隨著我們繼續擴大規模並提高 AMS 的服務水平，我們在拉丁美洲和歐洲取得了幾項關鍵勝利，當我看到我們的管道規模和我們在全球範圍內開展了各種試點項目。

As you can see from the chart on the left side of the slide, AMS. and DRS. are now 21% of our total revenue. As I mentioned, we expect to see at least double digit organic growth in these offerings next year. I believe we're still in the early stages of the transition to these high-margin recurring revenue offerings, and I'm excited about the opportunities that remain in front of us.

正如您從幻燈片左側的圖表中看到的那樣，AMS。和 DRS。現在占我們總收入的 21%。正如我所提到的，我們預計明年這些產品的有機成長至少會達到兩位數。我相信我們仍處於向這些高利潤經常性收入產品過渡的早期階段，我對擺在我們面前的機會感到興奮。

With that, I'd like to turn it over to Kurt to talk through the quarter and provide more color on our guidance assumptions. I'll return with some closing thoughts before we open up for Q&A.

至此，我想將其交給庫爾特來討論本季的情況，並為我們的指導假設提供更多資訊。在我們開始問答之前，我會帶著一些結束語回來。

Curt? Thanks, Mark. Looking at our fourth quarter results on Slide 8, 9% organic revenue growth was offset by 4% translational FX, primarily in Argentina. Adjusted EBITDA was up 5 million to $252 million and a margin of 20.2%. Eps was up 31% and includes a $0.48 benefit from gains on the sale of marketable securities. These were primarily in Argentina as we monetized certain investments that protected our assets from devaluation during the uncertain geopolitical backdrop in the country, EPS also benefited from a lower than expected foreign tax expense relating primarily to higher tax deductible inflation adjustments in Argentina. We have not included additional benefits from these items in our 2024 outlook. Free cash flow in the fourth quarter was 177 million and converted at a 70% rate from our EBITDA, representing a strong improvement year over year. As we continue to stress the importance of free cash flow across our business, realizing the heightened interest of this metric by our investors, we plan to present a trailing 12 month view of this metric when we share quarterly performance going forward.

生硬？謝謝，馬克。從幻燈片 8 上我們第四季的業績來看，9% 的有機收入成長被 4% 的外匯換算所抵消，主要是在阿根廷。調整後 EBITDA 成長 500 萬美元，達到 2.52 億美元，利潤率為 20.2%。Eps 上漲 31%，其中包括因出售有價證券而獲得的 0.48 美元收益。這些主要是在阿根廷，因為我們將某些投資貨幣化，以保護我們的資產在該國不確定的地緣政治背景下免受貶值，每股收益也受益於低於預期的外國稅收費用，主要與阿根廷較高的可抵扣通膨調整有關。我們在 2024 年展望中並未包含這些項目帶來的額外好處。第四季自由現金流為 1.77 億美元，以 EBITDA 折算率為 70%，較去年同期大幅改善。隨著我們繼續強調整個業務自由現金流的重要性，並意識到投資者對這一指標的興趣日益濃厚，我們計劃在分享未來季度業績時提供該指標的過去 12 個月視圖。

On slide 9, you can see that roughly 40% of our organic growth in the quarter came from AMS. and DRS. In total, $102 million in organic revenue produced $31 million of organic operating profit for an incremental margin of around 30%. Translational FX reduced revenue by $46 million and operating profit by $29 million with higher margin Argentina currency devaluation, offset by favorability in relatively lower margin euro denominated countries.

在投影片 9 上，您可以看到本季大約 40% 的自然成長來自 AMS。和 DRS。總計 1.02 億美元的有機收入產生了 3,100 萬美元的有機營運利潤，增量利潤率約為 30%。由於阿根廷貨幣貶值幅度較高，Translational FX 的收入減少了 4,600 萬美元，營業利潤減少了 2,900 萬美元，但被利潤率相對較低的歐元計價國家的優惠所抵消。

On Slide 10, we'd like to walk you from operating profit to adjusted EBITDA, starting on the less interest expense was up 9 million year over year to 52 million. The increases related to higher interest rates and higher debt needed to fund DRS.

在投影片 10 上，我們將向您介紹營業利潤和調整後 EBITDA，從扣除利息支出開始，年增 900 萬至 5,200 萬。這一增長與 DRS 融資所需的更高利率和更高債務有關。

Gross tax expenses were $42 million in the fourth quarter and $118 million for the full year, our effective tax rate was 24.8%, lower than our expected 30% target due to an increase in tax deductible inflation adjustments associated with Argentina's currency devaluation in mid-December. We expect these rates to normalize back to slightly below 30% in 2024. You can also see the 29 million in marketable securities gains that I mentioned earlier, income from continuing operations was $127 million, along with a reduced diluted average share count of $45.9 million. Shares equates to $2.76 per share, an increase of 31% with approximately $2.3 million shares purchased in 2023. We ended the year with 44.5 million shares outstanding, a reduction of approximately 4% from the prior year.

第四季總稅收支出為4,200 萬美元，全年總稅收支出為1.18 億美元，我們的有效稅率為24.8%，低於我們預期的30% 目標，原因是中期阿根廷貨幣貶值導致可抵稅通膨調整增加。十二月。我們預計這些比率將在 2024 年恢復正常至略低於 30%。您還可以看到我之前提到的 2,900 萬美元的有價證券收益，持續經營收入為 1.27 億美元，稀釋後平均股票數量減少為 4,590 萬美元。每股價格為 2.76 美元，成長 31%，2023 年購買了約 230 萬美元的股票。截至年底，我們的流通股數為 4,450 萬股，比上年減少約 4%。

Working back to adjusted EBITDA, you can see where we remove the marketable security gains to aid comparability to past and future periods. And total EBITDA was up 5 million to 252 million.

回到調整後的 EBITDA，您可以看到我們在哪裡刪除了可銷售的安全收益，以幫助與過去和未來時期進行比較。EBITDA 總額增加了 500 萬美元，達到 2.52 億美元。

On Slide 11, I'd like to talk you through one of our more significant successes of the year.

在投影片 11 上，我想向您介紹我們今年最重要的成功之一。

Free cash flow generation. We delivered a record 393 million in free cash flow in 2023, up 93% over last year in the chart on the top right, we have provided three year trends on the major components driving free cash flow. Record EBITDA was up approximately $80 million in 2023 and at the midpoint of guidance is expected to increase by another $90 million in 2024. We made considerable improvements year over year in working capital as we worked our way back from a challenging 2022 improvements were mostly driven by meaningful gains in DSO across all of our segments. The change in our annual incentive plans to include free cash flow for our top 300 leaders has engaged and motivated our leadership to drive results.

自由現金流的產生。我們在 2023 年實現了創紀錄的 3.93 億美元自由現金流，比去年增長 93%。在右上角的圖表中，我們提供了推動自由現金流的主要組成部分的三年趨勢。2023 年，創紀錄的 EBITDA 增加了約 8,000 萬美元，按照指引中位數，預計 2024 年將再增加 9,000 萬美元。我們從充滿挑戰的 2022 年中恢復過來，營運資本逐年取得了顯著改善，這些改善主要是由我們所有部門的 DSO 的有意義的收益推動的。我們的年度激勵計畫發生了變化，納入了 300 強領導者的自由現金流，這吸引並激勵了我們的領導層推動績效。

Looking into 2024, we expect to see slight working capital usage as we lap the strong improvements made in 2023.

展望 2024 年，隨著 2023 年的強勁進步，我們預計營運資金使用量將略有下降。

Cash taxes were lower in 2023, primarily due to lower foreign tax, driven by higher inflation adjustments. We expect cash taxes to increase in 2024 as these benefits are expected to lessen going forward.

2023 年現金稅較低，主要是由於通膨調整較高導致外國稅較低。我們預計 2024 年現金稅將增加，因為這些福利預計將在未來減少。

Cash interest is expected to rise in 2024 due to higher floating rates early in the year and increases in lease debt and provisional capital to fund our planned DRS. growth. Capex was down as a percentage of revenue in 2023. And we expect to continue this trend in 2024 as we make progress reducing capital intensity through growth in AMS. and DRS. for 2024, we expect total free cash flow to grow by approximately $50 million and conversion to be about 46% at the midpoint of our guidance.

由於年初浮動利率上升，以及為我們計劃的 DRS 提供資金的租賃債務和臨時資本增加，預計 2024 年現金利息將會上升。生長。2023 年資本支出佔收入的百分比有所下降。我們預計 2024 年將繼續這一趨勢，因為我們透過 AMS 的成長在降低資本密集度方面取得了進展。和 DRS。到 2024 年，我們預計自由現金流總額將增加約 5,000 萬美元，轉換率將達到我們指導中位數的 46% 左右。

Turning to slide 12, you'll see a familiar slide that displays our capital allocation framework. In short, we're not planning any major changes to our frame framework going forward. Starting at the top, we have an attractive menu of organic investments that will increase revenue growth, profitability and ultimately, future free cash flow. These investments are primarily OpEx related and fit within our broader profit guidance I'm happy to report that we have successfully reduced our leverage below three times to within our target range. As expected, this reduction came largely through EBITDA growth, although we continue to shift our debt by paying down our revolver to offset growth in leases and provisional capital needed to fund our DRS. growth with leverage now within our targeted range, we have increased our financial flexibility to pursue additional capital returns and accretive M&A.

翻到投影片 12，您將看到一張熟悉的投影片，其中顯示了我們的資本配置框架。簡而言之，我們不打算對未來的框架進行任何重大改變。從頂層開始，我們有一系列有吸引力的有機投資，這些投資將提高收入成長、獲利能力，並最終提高未來的自由現金流。這些投資主要與營運支出相關，符合我們更廣泛的利潤指導。我很高興地報告，我們已成功將槓桿率降低到三倍以下，達到我們的目標範圍。正如預期的那樣，這一減少主要來自 EBITDA 成長，儘管我們繼續透過償還左輪手槍來轉移債務，以抵消為我們的 DRS 提供資金所需的租賃和臨時資本的成長。隨著槓桿率在我們的目標範圍內實現成長，我們提高了財務靈活性，以追求額外的資本回報和增值併購。

Shifting to capital returns. In 2023, we completed 170 million of share repurchases, reducing outstanding share count at year end by approximately 4%. Looking forward, we have 500 million of capacity available and a new share repurchase program that expires at the end of 2025. We continue to see share repurchases at our current valuation as attractive, and we plan to be active in the market through a combination of systematic and opportunistic purchases on the M&A side, our philosophy remains consistent. Our pipeline is robust, with most of our targets prioritized in the AMS. and DRS. space. Any of our potential M&A opportunities require attractive returns and a strong strategic fit and need to fit within our current capital allocation framework, we remain focused on accretive capital allocation that will drive profitable growth and increased cash generation in our businesses. Our disciplined capital allocation framework is designed to maximize shareholder value for years to come, and I'm encouraged by the strong year we delivered in 2023.

轉向資本回報。2023年，我們完成了1.7億股股票回購，年末流通股數減少約4%。展望未來，我們有 5 億的可用產能以及將於 2025 年底到期的新股票回購計畫。我們仍然認為當前估值下的股票回購具有吸引力，並且我們計劃透過併購方面的系統性和機會主義購買相結合來活躍市場，我們的理念保持一致。我們的管道很強大，我們的大多數目標都優先考慮在 AMS 中。和 DRS。空間。我們任何潛在的併購機會都需要有吸引力的回報和強大的策略契合度，並且需要符合我們當前的資本配置框架，我們仍然專注於增值資本配置，這將推動我們業務的獲利成長和增加現金生成。我們嚴格的資本配置架構旨在未來幾年實現股東價值最大化，我們在 2023 年實現的強勁表現令我深受鼓舞。

On Slide 13, you can see our 2024 guidance. We expect total revenue growth to be in the mid-single digits. Organic growth is expected in the low to mid 10s offset by translational FX, primarily in Argentina, net of FX. We expect mid digit growth in 2024, evenly split between high-margin AMSDRS. offerings and growth in our cash and valuables management businesses. Adjusted EBITDA is expected to grow about twice as fast as revenue due to revenue growth and mix benefits as well as expected productivity in our core operations led by the Brink's business system. As is our normal practice, this guidance factors in FX expectations for Argentina, which we expect to be more pronounced in the first half of the year. All other currencies reflect rates. As of December 31st, 2023, free cash flows expected between 415 and 465 million, with conversion from adjusted EBITDA of approximately 46%. At the midpoint, EPS is expected to be between $7.30 and $8 per share EPS growth is partially muted due to the lapping of higher marketable securities gains in 2023 that we have not factored into our guidance for 2024. We also expect a return to more normalized effective tax rate, slightly better than 30%.

在投影片 13 上，您可以看到我們的 2024 年指南。我們預計總收入成長將達到中個位數。預計有機成長將在 10 左右左右，但會被外匯換算所抵消，主要是在阿根廷（扣除外匯）。我們預計 2024 年將實現中位數成長，其中高利潤 AMSDRS 各佔一半。我們的現金和貴重物品管理業務的產品和成長。由於收入成長和混合效益以及以 Brink 業務系統為主導的核心業務的預期生產力，調整後 EBITDA 的成長速度預計將是營收的兩倍左右。按照我們的正常做法，這個指導因素考慮了阿根廷的外匯預期，我們預期這一預期將在今年上半年更加明顯。所有其他貨幣均反映匯率。截至 2023 年 12 月 31 日，自由現金流預計在 4.15 至 4.65 億之間，調整後 EBITDA 的轉換約為 46%。中點時，每股盈餘預計在 7.30 美元至 8 美元之間。由於 2023 年有價證券收益較高，我們尚未將其納入 2024 年指引，因此每股盈餘成長部分放緩。我們也預計，有效稅率將回歸更正常化的水平，略高於 30%。

Interest expense expectations reflect market assumptions for interest rate reductions in the back half of 2024 and are based on our current capital structure. You may notice that we are not providing guidance to operating profit as we have historically. We have found that EBITDA is the per preferred valuation and profitability metric of our analysts and shareholders. And we believe guiding adjusted EBITDA maintains the same amount of visibility into the expected future performance.

利息支出預期反映了 2024 年下半年降息的市場假設，並基於我們目前的資本結構。您可能會注意到，我們沒有像以往那樣提供營業利潤指導。我們發現 EBITDA 是我們的分析師和股東首選的估值和獲利能力指標。我們相信指導調整後的 EBITDA 可以對預期的未來業績保持相同的可見性。

With that, I'll turn it back over to Mark for some closing comments.

至此，我將把它轉回給馬克，徵求一些結束語。

Thanks, Curt. Before we turn to Q&A, I thought it'd be helpful to investors to provide a comparison of our 2024 guidance against the targets that we set out in our 2021 Investor Day through the first two, two years of this three year framework. We've outperformed those Investor Day targets when considering the FX and interest rate headwinds. As a reminder, our targets were given on a constant currency basis and excluding the impacts of FX over the multi-year period, while reported revenue was a little short of the number we communicated over two years ago. There's already been over 400 million of currency headwinds to revenue. Strategically. We also communicated a growth plan that focused on acceleration of our higher margin businesses of AMS. and DRS., which we called Strategy 2.0. At the time, our commitment was to deliver an incremental 500 million over the three year period, and we've already delivered $482 million over the first two years with our 2024 guidance we expect to deliver over 600 million in total, an outperformance of over 100 million of revenue. Our 2024 guidance has margins of 18.6%. The midpoint, driven by the improved revenue mix, exceeding our 18.5% target we set back in 2021.

謝謝，柯特。在我們進行問答之前，我認為將我們的 2024 年指引與我們在 2021 年投資者日設定的目標進行比較（透過這個三年框架的前兩年、兩年）會對投資者有所幫助。考慮到外匯和利率的不利因素，我們的表現超出了投資者日的目標。提醒一下，我們的目標是在固定貨幣的基礎上給予的，不包括多年期間外匯的影響，而報告的收入略低於我們兩年前通報的數字。收入已經面臨超過 4 億美元的貨幣阻力。戰略上。我們還傳達了一項成長計劃，重點是加速 AMS 的高利潤業務。和 DRS，我們稱之為策略 2.0。當時，我們的承諾是在三年內增量交付 5 億美元，而我們已經在前兩年交付了 4.82 億美元，根據我們的 2024 年指導，我們預計總共交付超過 6 億美元，超出了超過收入1億。我們的 2024 年指導利潤率為 18.6%。在收入結構改善的推動下，中點超過了我們在 2021 年設定的 18.5% 的目標。

Looking at the EBITDA dollars, we expect to deliver 960 million at the midpoint, $80 million higher than our original target. When taking into account the 120 million of negative FX we've already experienced in the first two years.

從 EBITDA 美元來看，我們預計中位數將達到 9.6 億美元，比我們最初的目標高出 8,000 萬美元。考慮到前兩年我們已經經歷了 1.2 億美元的負外匯。

Looking at free cash flow, we've seen a rapid rise of interest rates over the last 2.5 years. That has moved the assumed rates on our debt from only basis points to over 5.25%. Today, free cash flow conversion is higher than our original expectations when factoring in the impact of 130 million, largely from higher interest rates over the last couple of years.

從自由現金流來看，我們看到過去 2.5 年利率快速上升。這使得我們的債務假設利率從只有一個基點上升到超過 5.25%。如今，考慮到 1.3 億美元的影響，自由現金流轉換高於我們最初的預期，這主要是由於過去幾年利率上升所致。

We've also sharpened our focus on value-creating capital allocation. We completed the NovaScreen acquisition in 2022 to bolster our global capabilities in the ATM managed services market. We've also returned significant capital to shareholders approximately 300 million in share repurchases and dividends over the last two years. In addition, we recently announced a two year 0.5 billion share repurchase authorization. Even with these investments over the past few years, we were still able to reduce our leverage by 0.5 turn to 2.9 times and I look back over the strategy period. I'm confident the progress we've made and remain committed to our strategic direction. The future growth prospects for AMS. and DRS. remains strong and the demand for our essential services remains high. With the increased financial flexibility and improve operating model, we built over the last two years. We will continue to grow our business and create additional shareholder value during 2024 and beyond.

我們也更加重視創造價值的資本配置。我們於 2022 年完成了對 NovaScreen 的收購，以增強我們在 ATM 託管服務市場的全球能力。過去兩年，我們也透過股票回購和股利向股東返還了約 3 億美元的大量資本。此外，我們最近也宣布了為期兩年的 5 億股股份回購授權。即使在過去幾年進行了這些投資，我們仍然能夠將槓桿率降低 0.5 倍至 2.9 倍，我回顧一下策略期間。我對我們所取得的進展充滿信心，並將繼續致力於我們的策略方向。AMS 未來的成長前景。和 DRS。仍然強勁，對我們基本服務的需求仍然很高。隨著財務靈活性的增加和營運模式的改善，我們在過去兩年中建立了。我們將在 2024 年及以後繼續發展業務並創造額外的股東價值。

Now let's open the line for questions. Operator?

現在讓我們打開提問熱線。操作員？

Thank you, we will now begin the question-and-answer session. (Operator Instructions)

謝謝大家，我們現在開始問答環節。（操作員說明）

George Tong, Goldman Sachs.

喬治唐，高盛。

Thanks. Good morning. I am going to DoorDash and your cash and valuables management business had organic revenue growth of 7% in the quarter, which was quite strong. Up part of this growth reflects improved price realization. Can you elaborate on how much pricing gains drove the growth and how sustainable these price increases are looking at?

謝謝。早安.我要去 DoorDash，你們的現金和貴重物品管理業務在本季的有機收入成長了 7%，相當強勁。這一增長的一部分反映了價格實現的改善。您能否詳細說明價格上漲在多大程度上推動了成長以及這些價格上漲的可持續性如何？

Yes. Thanks, George. As we as we look at the business, just sort of globally, maybe I'll just spin around the regions a little bit because it's there's some different, some unique aspects around. We're seeing strong pricing continue, George, relative to inflation, although we've seen inflation subside in most regions. We continue to see pricing that exceeds inflation. That's allowing us to continue to maintain our margins, particularly in North America. We've seen less inflation and has has subsided and there's still and you'll see the numbers today. I'm sure we haven't seen the PCE number yet, but we'll still continue to see local inflation here for the workforce, which is putting pressure on wages, and we're continuing to push that through. I think that the demand side, though, has really not we've not seen the demand impact, though from that price pressure particularly as we shift our business model, DRS. This is an area where we continue to see a lot of success, particularly not only in bookings, but also in a growing pipeline. I mentioned in the prepared comments, our pipeline is up 50% year on year for sales opportunities by the way that we're also seeing that around the globe in the other regions we moved to Latin America. Again, there's quite a few different things going on down there. Some geopolitical uncertainty, of course, in Argentina and really continue to see the market and the economy in Brazil be light. And so a lot of pricwing in those markets as we continue to push through, I'd say and in the rest of Latin America, really pretty stable. That pricing continues to follow that a little bit higher than 50 50 mix of price to volume. But we continue to see that. We expect that to continue to normalize as we move into '24 that we've already seen that be the case, both in Latin America as well as North America.

是的。謝謝，喬治。當我們審視全球業務時，也許我會稍微圍繞一下這些地區，因為它有一些不同的、一些獨特的面向。喬治，我們看到相對於通貨膨脹而言，定價仍然強勁，儘管我們已經看到大多數地區的通貨膨脹有所消退。我們繼續看到定價超過通膨。這使我們能夠繼續保持利潤率，特別是在北美。我們看到通貨膨脹有所減少並且已經消退，而且仍然存在，您今天會看到這些數字。我確信我們還沒有看到個人消費支出數據，但我們仍將繼續看到當地勞動力通膨，這給薪資帶來壓力，我們將繼續推動這一進程。我認為需求方面確實沒有我們沒有看到需求的影響，儘管價格壓力特別是當我們轉變我們的業務模式 DRS 時。在這個領域，我們繼續取得了巨大的成功，特別是不僅在預訂方面，而且在不斷增長的管道方面。我在準備好的評論中提到，我們的銷售機會比去年同期成長了 50%，我們也看到，在全球其他地區，我們已遷移到拉丁美洲。再說一遍，下面發生了很多不同的事情。當然，阿根廷存在一些地緣政治不確定性，巴西的市場和經濟確實繼續清淡。因此，隨著我們繼續推進，這些市場的許多定價，我想說，在拉丁美洲其他地區，確實相當穩定。該定價繼續遵循略高於 50 50 價格與數量的組合。但我們繼續看到這一點。我們預計，隨著進入 24 年，這種情況將繼續正常化，我們已經看到拉丁美洲和北美的情況都是如此。

Moving on to Europe, I think things again, they're pretty stable. We are seeing them and good DRS. and AMS. pickup. And you can see that in the numbers. We also have a good pipeline of opportunities that we've signed and booked that we'll see come online in Europe, particularly on the AMS side.

轉向歐洲，我再次認為事情非常穩定。我們正在看到他們和良好的 DRS。和 AMS。撿起。你可以從數字中看到這一點。我們還擁有一系列良好的機會，我們已經簽署並預訂了這些機會，我們將看到這些機會在歐洲上線，特別是在 AMS 方面。

Move on rest of world.

繼續前進到世界其他地方。

Rest of world is predominantly our BGS business but a lot of our a lot of the global services business is there in that segment. We saw that return. It continued to pick up sequentially Q3 to Q4. If you remember, we had a bit of softness in Q3 globally with our global services business, particularly on commodities and banknotes movements. We've seen that pick back up sequentially in Q4, predominantly in Rest of World segment. We did see some softness there in VGS. in North America, which you can see coming through on the volume side. But all in all, the pricing environment stays pretty consistent with 23 as we head into 24, levelizing a little bit closer to 50 50.

世界其他地區主要是我們的 BGS 業務，但我們的許多全球服務業務都在該領域。我們看到了這種回歸。第三季至第四季繼續回升。如果您還記得的話，第三季我們的全球服務業務在全球範圍內出現了一些疲軟，特別是在大宗商品和紙幣流動方面。我們看到第四季的情況有所回升，主要是在世界其他地區。我們確實在 VGS 中看到了一些疲軟的情況。在北美，你可以看到銷量方面的變化。但總而言之，隨著我們進入 24，定價環境與 23 保持相當一致，趨於接近 50 50。

Got it. Very helpful. And then you noted expectations of double digit organic revenue growth for DRS. and AMS. in 2024. Can you talk about how much growth you're specifically incorporating into the guide and how you expect the growth growth rates of DRS. and AMS. to compare to each other in the year ahead? Sure.

知道了。很有幫助。然後您提到了 DRS 兩位數有機收入成長的預期。和 AMS。 2024年。您能否談談您具體將多少成長納入指南以及您對 DRS 成長率的預期如何。和 AMS。來年相互比較？當然。

Well, are we talking we actually had a similar look last year, although maybe it's a little bit more, but about 50% of our organic growth, we're anticipating to be NDRS. and AMS. that that's an expectation. Last year we wrote about the same or a little bit less of the organic growth, but going forward will be a little more, I think as the business becomes a larger percentage of the base. As you know, we exited the year at 21% of total revenue from AMSDRS. as that base continues to get bigger and the organic growth rates are higher than the CBM business. We continue to see that maybe 50 50 split of organic growth of AMSDRS. to the rest of the business, probably accelerate a little bit, maybe a little more than 50%. So for us, that's weak. That's what's embedded in our guide now that obviously excludes the Argentina impact to organic growth, but that mid-single digit organic growth that we would expect would be about, like I said, about half of that would be in SDRS.?

好吧，我們說的是，去年我們實際上也有類似的情況，雖然可能多一點，但我們預計 NDRS 將約占我們有機成長的 50%。和 AMS。那是一種期望。去年我們寫了相同或略少的有機成長，但我認為隨著業務在基數中所佔比例的增加，未來會更多一些。如您所知，我們今年結束時的收入佔 AMSDRS 總收入的 21%。隨著此基礎不斷擴大，有機成長率高於煤層氣業務。我們繼續看到 AMSDRS 的有機成長可能有 50 50 的分裂。對於其他業務來說，可能會加速一點，可能會超過 50%。所以對我們來說，這很弱。這就是我們現在指南中的內容，顯然排除了阿根廷對有機成長的影響，但我們預計中個位數的自然成長將是，就像我說的，其中大約一半將來自 SDRS。

Correct.

正確的。

Got it. Very helpful.Thank you. Sure.

知道了。非常有幫助。謝謝。當然。

Tobey Somme, Truist Securities.

托比索姆，Truist 證券公司。

Thanks. I wanted to ask a question about the free cash flow and conversion. You're guiding for about 440 million, I guess. And if I assume low 40s and then dividend, that's about 400 million left. If you're just let it sit there, the leverage would be lower than what your stated target is. And so without without paying any debt down, maybe 2.6 times if my math is right, but we do intend mostly to do share repurchase with that cash because that could be in excess of 10% of the stock.

謝謝。我想問一個關於自由現金流和轉換的問題。我猜你的指導價約為 4.4 億。如果我假設 40 多美元，然後是股息，那麼還剩下大約 4 億。如果您只是讓它坐在那裡，槓桿將低於您規定的目標。因此，在不償還任何債務的情況下，如果我的數學正確的話，可能是 2.6 倍，但我們確實打算主要用這些現金進行股票回購，因為這可能會超過股票的 10%。

Yes, hey, Toby, it's Kurt. I think, come, you know, we are as we mentioned in the remarks, we continue on an active program for share repurchases. And I think the way you can think about share repurchases in 24. Because if you look at our free cash flow and take about half of that, which is what we pretty much did in 23 then that kind of gets you to that pretty close to the amount of share repurchases were initially thinking about for 24?

是的，嘿，托比，我是庫爾特。我想，正如我們在評論中提到的，我們繼續積極實施股票回購計畫。我認為你可以用 24 小時來考慮股票回購的方式。因為如果你看看我們的自由現金流並取其中的大約一半，這就是我們在 23 年所做的，那麼這會讓你非常接近最初考慮的 24 年股票回購數量？

Of course, we'll be opportunistic and it depending what happens in the market, but I think that's a good way to think about it.

當然，我們會投機取巧，這取決於市場上發生的情況，但我認為這是一個很好的思考方式。

And is that embedded in the EPS guidance already?

這是否已嵌入 EPS 指南中？

Yes.

是的。

Okay. Yes. Could you talk about AMS. and DRS. for through a I think, a different lens than the earlier part of the call. It talk about it in terms of the extent to which you're participating in a market trend versus driving a market trend or taking share because of it is a little bit hard externally with all of your international exposures to understand where you're kind of ahead or lagging on an AMS. perspective and then DRS., I'm curious about the growth coming from kind of transitioning legacy retail customers into the new line of business versus kind of actual net growth of new customers and greenfield stuff?

好的。是的。能談談 AMS 嗎？和 DRS。我認為，這是一個與電話會議早期部分不同的視角。它是從你參與市場趨勢的程度與推動市場趨勢或佔據份額的角度來討論的，因為從外部來看，你的所有國際風險敞口很難了解你的處境。領先或落後於 AMS。從角度來看，然後是 DRS。，我很好奇來自於將傳統零售客戶轉變為新業務線的成長與新客戶和綠地產品的實際淨成長之間的關係？

Sure. Thanks, Tobey. There's maybe I'll take DRS first and then a second on the DRS. side is that the single kind of one to one customer, one location, a simple retail shop of remote deposits, provisional capital, digital transparency, integration with POS systems. I think that has been an evolution. And in some of the larger markets, we have some obviously some differentiation that we're leading with. But I'd say that is largely US with the other participants, let's say, moving that market and driving that market probably add in a, let's say, organized orchestrate interconnect concerted way. It's a clear value proposition for customers. I think the other thing that we're I would say our DRS has extended, and this is where I think we're leading would be as we're looking to close, put a close loop on the cash ecosystem inside of a retail stores, particularly larger, higher cash on our usage stores in all regions. And that's been demonstrated. And we've released some examples of that in what we've done in Europe, particularly where we've developed an integrated cash recycling in electronic payments, a fully managed service for a for a fully outsourced solution that allows a retailer to outsource basically their entire POS experience, not just on the electronic side, like you might see in the traditional POS providers, but providing the full closed loop service, both physical and digital integration in the stores. And I would say in that area, we're leading because and the way I'd say we're leading as many of our discussions with customers, our one-on-one discussions that we're collaborating together and evolving a solution, developing a solution, providing the integration, providing proprietary program management and of course, all of the managed services post installation. And that's really been a, I'd say, a next level relationship for us that we've been able to develop because of our full visibility and access to the cash ecosystem.

當然。謝謝，托比。也許我會先參加 DRS，然後再參加 DRS。一方面是單一的一對一客戶、一個地點、遠端存款、臨時資金、數位透明度、與 POS 系統整合的簡單零售店。我認為這是一個演變。在一些較大的市場中，我們有一些明顯的差異化優勢。但我想說，這主要是美國與其他參與者的合作，比如說，推動該市場並推動該市場可能會以一種有組織的、協調一致的互連方式進行。這對客戶來說是一個明確的價值主張。我認為我們的另一件事是我們的 DRS 已經擴展，這就是我認為我們領先的地方，因為我們希望關閉零售店內的現金生態系統，建立一個閉環，特別是我們所有地區的使用商店規模更大、現金更高。這已經得到證明。我們在歐洲所做的事情中發布了一些例子，特別是我們在電子支付中開發了整合現金回收，這是一種完全外包解決方案的完全託管服務，允許零售商基本上外包他們的整個POS 體驗，不僅僅是電子方面，就像您在傳統POS 提供者中看到的那樣，而是提供完整的閉環服務，包括商店中的實體和數位整合。我想說，在這個領域，我們處於領先地位，因為我想說的是，我們在與客戶的許多討論中處於領先地位，我們在一對一的討論中，我們正在共同合作並製定解決方案，開發解決方案、提供整合、提供專有程式管理，當然還有所有安裝後的託管服務。我想說，這對我們來說確實是一種下一個層次的關係，因為我們對現金生態系統有完全的可見性和訪問權，所以我們能夠發展這種關係。

On the AMS side, again, globally speaking globally, I think we're still are in the early innings. I mean, we love where we are. We love the from the customers. We've signed the contracts, we've had the networks we've deployed. But honestly we're in a very it's a very nascent market. There is still some many years of opportunity for it's easier for ATM owners, particularly our financial institutions to outsource deals. This infrastructure these systems these networks. And I think this is where, again, we're having conversations with customers that, of course, involve competition in many cases. But in many cases, we're also having one-on-one conversations with customers to develop a solution. And again, our unique value proposition is that we're able to continue to close the entire loop and provide the most synergy of the full value stream. And the reason for that is and we've talked about this before, is we occupy and control the largest cost base in the value chain of an of management and ATM. And that really is the physical logistics and processing of the physical cash. And so that that's an area where we think we can continue to innovate, leveraging the technology we develop, but also continue to show customers that not only are we are we the cash logistics provider, but we're also able to provide a more fulsome solution and provide a closed loop answer to their entire ATM network.

在 AMS 方面，再次強調，就全球而言，我認為我們仍處於早期階段。我的意思是，我們熱愛我們所處的位置。我們喜歡客戶的服務。我們已經簽署了合同，我們已經部署了網路。但老實說，我們正處於一個非常新興的市場。對於 ATM 所有者，特別是我們的金融機構來說，外包交易仍然有很多年的機會。這些基礎設施、這些系統、這些網路。我認為這也是我們與客戶對話的地方，當然，在很多情況下，這涉及競爭。但在許多情況下，我們也會與客戶進行一對一對話以開發解決方案。再說一次，我們獨特的價值主張是我們能夠繼續關閉整個循環並提供整個價值流的最大協同作用。原因是我們之前已經討論過，我們佔據並控制了管理和 ATM 價值鏈中最大的成本基礎。這其實是實體現金的實體物流和處理。因此，我們認為在這個領域我們可以繼續創新，利用我們開發的技術，同時繼續向客戶展示我們不僅是現金物流提供商，而且我們還能夠提供更豐富的服務。解決方案並為其整個ATM 網路提供閉環答案。

I really appreciate that. That's helpful. Could you describe the of the sales process in Linx and AMS.? Because I think you mentioned pilots, and it would be interesting to hear you talk about that to understand the visibility you have into the ongoing momentum.

我真的很感激。這很有幫助。您能否描述一下 Linx 和 AMS 中的銷售流程？因為我認為您提到了試點，聽到您談論這一點以了解您對持續勢頭的了解會很有趣。

Sure. So our pipeline globally, as you know, continues to grow and the how those how that pipeline evolves is typically on either an outbound from our team in a local market with our relationships or an inbound from one of our customers asking for, hey, what do you think could you help us with this and that evolves in many different ways, but the really big decision that a customer makes is when they step into this discovery phase. And that's where we really sit down and put pen to paper both from a financial perspective, but from a technology perspective and operations logistics perspective, and build out the proposed solution with the customer. And from from that point, the customer either says yes or no to any and all parts of our offering, but predominantly what they do is move to a pilot phase. And that might feel like 10 ATMs, 25 ATMs, 100 ATMs, depending on how big the pilot is and how big their estate is and we typically bring those online. It's if it's a fee, it's not a charity event, but we developed this solution arm's length to develop a proof of concept in a and frankly prove to them that the solution can deliver all of what we've committed to from that customer's deck that can take Tobi anywhere from 90 days to a year and what we have found is the AMS. pipeline and AMS. contracts are typically longer lead time decisions.

當然。因此，如您所知，我們在全球的管道持續成長，而管道的發展方式通常是我們在當地市場的團隊與我們的關係的出站，或者是我們的一位客戶要求的入站，嘿，什麼您認為您可以幫助我們解決這個問題嗎？這個問題會以多種不同的方式發展，但客戶做出的真正重大決定是當他們進入這個發現階段時。這就是我們真正坐下來從財務角度、技術角度和營運物流角度著手的地方，並與客戶一起制定建議的解決方案。從那時起，客戶要么對我們產品的任何部分錶示“是”，要么說“否”，但他們所做的主要是進入試點階段。這可能感覺像是 10 個 ATM、25 個 ATM、100 個 ATM，具體取決於飛行員的規模和他們的資產有多大，我們通常會將這些放在網路上。如果它是收費的，那麼它就不是慈善活動，但我們開發了這個解決方案，以開發概念驗證，並坦率地向他們證明，該解決方案可以從客戶的平台上實現我們所承諾的所有內容可以帶Tobi 去任何地方90 天到一年，我們發現的是AMS。管道和 AMS。合約通常是交貨時間較長的決策。

Then the DRS. and maybe if you have a continuum of time on, you know, on initial contact to revenue that might for DRS. on the single aisle ice-cream shopper deli. That might be it is as short as 90 days for an AMS. contract could be as long as a year, two years.

然後是 DRS。也許如果您有連續的時間，您知道，在初次接觸 DRS 的收入時可能會這樣。在單通道冰淇淋熟食店。AMS 的週期可能只有 90 天。合約期限可以長達一年、兩年。

And so it just varies.

所以它只是有所不同。

And I think it also varies with where we are in that market. And so where we have existing networks in a market that we're able to already demonstrate to a customer, we're helping another customer, it's easier and faster to bring them online where if we have we're pioneering it in a particular market, it's a little more difficult. It takes a little more time. And I've used the example of a small country.

我認為這也因我們在該市場的地位而異。因此，如果我們在市場上擁有現有網絡，我們已經能夠向客戶展示，我們正在幫助另一個客戶，可以更輕鬆、更快速地將他們帶到網上，如果我們有的話，我們就可以在特定市場中開拓它，有點困難。還需要一點時間。我用了一個小國的例子。

I mentioned it before in Jordan.

我之前在約旦提到過這一點。

It took us a while to get the first ATM network. But once we did, we now have four more banks that have signed on and are part of our managed services network in the country. And so that's a good example of how once we get a success, we can parlay that into more success and frankly, more value for the incremental customers.

我們花了一段時間才獲得第一個 ATM 網路。但一旦我們這樣做了，現在又有四家銀行已簽約並成為我們在該國的託管服務網絡的一部分。這是一個很好的例子，說明一旦我們取得成功，我們就可以將其轉化為更多的成功，坦白說，為增量客戶創造更多價值。

Thank you very much. And last question for me. Could you talk about free cash flow conversion from EBITDA in 2020 for what are the sort of puts and takes with your with your guidance number? And from where do you think that lands a little bit longer term, how much how much more opportunity to increase that percentage do you have and what are the main levers?

非常感謝。還有我的最後一個問題。您能否談談 2020 年 EBITDA 的自由現金流轉換，以及您的看跌期權和看跌期權的類型以及您的指導數字？從長遠來看，你認為從哪裡開始，你還有多少機會可以增加這個百分比，主要的槓桿是什麼？

Sure. Yes. Tobey, let me let me kind of walk you through that thinking a little bit. I mean, if you if you kind of looking at how you would think about a bridge from 23 to 24 free cash flow, obviously the growth and profitability. So the EBITDA expansion's going to be your major some item that's increasing cash flow and then off of that will pull off some higher interest and higher taxes, both cash interest and cash tax and then the remainder would be a little bit left related to working capital and other items. So a little bit on working capital as we grow so that that's kind of the walk, I think with conversion at 46%, about 46% in 24, we don't see any reason why we shouldn't be getting 50% and higher as we look out, there's nothing really structurally that would hold that back as we grow EBITDA, we continue to get more efficient with our capital and more efficient with our working capital the one thing I didn't mention was CapEx because we we continue to see that as kind of a flat number. So and all of those things will help continue to drive that conversion. And I think there continues to be opportunity in our taxes, our tax planning, we continue to work in that area as well.

當然。是的。托比，讓我帶您稍微思考一下這個問題。我的意思是，如果你考慮如何考慮從 23 到 24 自由現金流的橋樑，顯然是成長和獲利能力。因此，EBITDA 擴張將是你的主要項目，它會增加現金流，然後會帶來一些更高的利息和更高的稅收，包括現金利息和現金稅，然後剩下的部分將與營運資本相關和其他物品。因此，隨著我們的發展，我們會在營運資本上投入一點點，所以這就是一種步行方式，我認為轉換率為46%，24 年約為46%，我們看不出有任何理由不應該獲得50% 甚至更高正如我們所看到的，隨著我們EBITDA 的成長，沒有什麼真正的結構性因素會阻礙這一點，我們繼續提高資本效率，提高營運資本效率，我沒有提到的一件事是資本支出，因為我們繼續將其視為一個固定數字。因此，所有這些事情都將有助於繼續推動這種轉變。我認為我們的稅收和稅收規劃仍然存在機會，我們也將繼續在該領域開展工作。

And if I could sneak one last one in from Asia at DRS perspective, I presume that you're seeing most of your success in the US, but maybe you could enlighten us on that. And wherever you are seeing the most progress in DRS and of micro level with in that country. Are you seeing more of a positive influence in terms of holding down CapEx because of better density and utilization of the fleet?

如果我能從 DRS 的角度從亞洲偷偷地講最後一篇，我想您在美國看到了大部分成功，但也許您可以在這一點上啟發我們。無論您在哪個國家/地區都可以看到 DRS 和微觀層面的最大進展。您是否看到由於機隊密度和利用率提高而對抑制資本支出產生了更多積極影響？

Yes, absolutely. And I'd say two well, while North America is the biggest and we are happy with the progress. As I mentioned, that pipeline of activity is the same in the other two regions like Latin America and in Europe.

是的，一點沒錯。我想說兩個很好，而北美是最大的，我們對進展感到滿意。正如我所提到的，拉丁美洲和歐洲等其他兩個地區的活動管道是相同的。

If I think about Europe, if I think about those areas specifically from a CapEx perspective, our CapEx was largely flat the last two years. We don't expect that to be much different going in 24. We'd love to be in a position where we have so much DRS. that we need more infrastructure. But I think where we sit today, DRSAMS. both give us the opportunity to continue to leverage off our existing asset base and be more productive. Obviously, the more Drs we have, the more opportunity we have to control our own network and frequency. I believe that this is going to continue to be an opportunity for us in the future. And there's no reason why we don't think that can happen. I think customers also view this as and more and more as a value proposition as well. And so we hear from existing customers that are converting or new customers that may be passed on the service previously, the idea of them not being responsible to us for appointments and for scheduled pickups and fixed logistics networks. I think it is also very appealing.

如果我考慮歐洲，如果我特別從資本支出的角度考慮這些領域，我們的資本支出在過去兩年基本上持平。我們預計 24 小時後情況不會有太大不同。我們希望能夠擁有如此多的 DRS。我們需要更多的基礎設施。但我想我們今天坐的地方，DRSAMS。兩者都讓我們有機會繼續利用現有的資產基礎並提高生產力。顯然，我們擁有的博士越多，我們就越有機會控制自己的網路和頻率。我相信這對我們未來仍將是一個機會。我們沒有理由認為這不會發生。我認為客戶也越來越多地將此視為一種價值主張。因此，我們從正在轉換的現有客戶或之前可能會接受該服務的新客戶那裡聽到，他們不向我們負責預約、預定取貨和固定物流網絡。我認為這也是非常吸引人的。

Thank you very much.

非常感謝。

This will conclude our question-and-answer session. I would like to turn the conference back over to Mark Eubanks for any closing remarks.

我們的問答環節到此結束。我想將會議轉回馬克·尤班克斯（Mark Eubanks）發表閉幕詞。

Yes, good morning.

是的，早安。

Thank you, everyone, for joining us today. We appreciate your support, and we look forward to speaking with each of you soon.

謝謝大家今天加入我們。我們感謝您的支持，並期待很快與你們每一個人交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。