Earnings Presentation
Q1 2024
Javier Hergueta - CFO
Miguel Bandrés - IRO
April 26th 2024
Cash in the world
0. Cash in the world Miguel Bandrés - IRO
"Germans choose cash over electronic payments for daily payments and carry between 100 and 150 euros on average. Privacy is the most valued feature of cash."
Source: El Economista
"According to a study by Bain & Company, in 2023 the countries that used cash the most in Latin America were Mexico, Peru and Colombia, all of them exceeding 60% of transactions."
Source: Semana (Colombia)
"Fraud claims in banking transactions before the Bank of Spain have grown by 109.1% in the last year, exceeding 6 million euros."
Source: Cinco Días, El País
"Following electronic payment system failures in Spain and Uruguay, there have been further widespread and temporary digital payment failures in France, the United Kingdom, Colombia and Australia."
Source: Cash Essentials
2
Highlights of the period: Significant improvement in net income
1. Highlights of the period Javier Hergueta - CFO
Sales -1.4%
- Growth ex M&A +2.7%.
- Double-digitorganic growth in all geographies.
- Gradual compensation in Argentina for devaluation.
EBITA Margin
10.7%
-
EBITA affected by restructuring costs in Australia, with no cash flow impact, and
Forex openings costs. - Net profit Improved +25.2% on lower financial costs.
Transformation 31.7% s/sales
- Penetration > 30% total sales.
-
Growth levered in key solutions:
Cash Today, Corban and Forex.
FCF 1M €
- Cash generation affected by calendar effect.
- Investment effort on Forex expansion.
Other
- MSCI rating upgraded to BB.
- Treasury stock 2.5% of capital redemption.
- India to be consolidated as of April 1.
3
Profit and Loss Account (1)
Million Euros | 3M 2023 | 3M 2024 | VAR % | |||
Sales | 477 | 470 | (1.4%) | |||
EBITDA | 85 | 81 | (4.7%) | |||
Margin | 17.8% | 17.2% | ||||
Depreciation | (25) | (31) | ||||
EBITA | 60 | 50 | (15.9%) | |||
Margin | 12.5% | 10.7% | ||||
Amortization of intangibles | (6) | (6) | ||||
EBIT | 53 | 44 | (18.1%) | |||
Margin | 11.2% | 9.3% | ||||
Financial result | (24) | (11) | ||||
EBT | 29 | 33 | 13.5% | |||
Margin | 6.1% | 7.0% | ||||
Taxes | (15) | (15) | ||||
Tax rate | 51.5% | 46.5% | ||||
Net Profit | 14 | 18 | 25.2% | |||
Margin | 3.0% | 3.7% | ||||
EPS(2) | 0.925 | 1.188 | 28.4% | |||
2. Profit and Loss Account
Javier Hergueta - CFO
Total sales (1) (M€, %)
-1.4% | ||||
477 | 51.8% | (3.9%) | (49.3%) | 470 |
Q1 2023 | Org. | Inorg. | FX | Q1 2024 |
EBITA evolution (M€, %)
-15.9% | |
60 | 50 |
-180b.p. | |
12.5% | 10.7% |
3M 2023 | 3M 2024 |
(1) Figures according to IFRS 21 & 29 (hyperinflation accounting) and IFRS 16 (leases). 2) EPS in euro cents.
4
Cash Flow and Net Debt (1)
Million Euros | 3M 2023 | 3M 2024 | |||
EBITDA | 85 | 81 | |||
Provisions and other items | (4) | (6) | |||
Income tax | (20) | (16) | |||
Acquisition of PP&E | (21) | (22) | |||
Changes in working capital | (32) | (35) | |||
Free Cash Flow | 8 | 1 | |||
% Conversion(2) | 75% | 73% | |||
Interest payments | (6) | (10) | |||
M&A payments | (8) | (26) | |||
Dividend & Treasury stock | (13) | 0 | |||
Others | (25) | (6) | |||
Total Net Cash Flow | (44) | (40) | |||
Net financial position (beg. of period) | (510) | (624) | |||
Treasury Increase/(decrease) | (44) | (40) | |||
Foreign Exchange rate | (14) | 0 | |||
Net financial position (end of period) | (568) | (664) | |||
3. Cash Flow and Net Debt
Javier Hergueta - CFO
Total Net Debt (Total Net Debt / EBITDA LTM) (1)
2.1x | 2.1x | 2.2x | 2.6x | 2.8x | |||||||||||||||||||||||
777 | 778 | 808 | 860 | 905 | |||||||||||||||||||||||
149 | 125 | ||||||||||||||||||||||||||
126 | |||||||||||||||||||||||||||
126 | 125 | ||||||||||||||||||||||||||
122 | |||||||||||||||||||||||||||
115 | |||||||||||||||||||||||||||
114 | |||||||||||||||||||||||||||
111 | 114 | 664 | |||||||||||||||||||||||||
624 | |||||||||||||||||||||||||||
597 | |||||||||||||||||||||||||||
568 | 565 | ||||||||||||||||||||||||||
-29 | -26 | -29 | -28 | -6 | |||||||||||||||||||||||
3M 2023 | 6M 2023 | 9M 2023 | FY 2023 | 3M 2024 | |||||||||||||||||||||||
Deferred payments | Treasury Stock | ||||||||||||||||||||||||||
IFRS 16 Debt | Net Financial Position | ||||||||||||||||||||||||||
- Increase in Net Debt vs. FY 2023 mainly driven by treasury stock redemption.
-
Increase in (Net Financial Position + Deferred
Payments) Q1 +16M €, significantly lower than previous years Q1. - Leverage ratio temporarily affected by currency impact Q4 2023.
(1) Figures according to IFRS 21 & 29 (hyperinflation accounting) and IFRS 16 (leases); (2) Conversion ratio: (EBITDA - Capex) / EBITDA.
5
Transformation: Consolidating Transformation Products penetration
Transformation Products (M€) (1)
4. Transformation Javier Hergueta - CFO
11.5% | 149 | |
134 | ||
3M 2023 | 3M 2024 | |
28.1% | 31.7% |
% Penetration over sales
- Transformation products growth +11.5%, penetration +370b.p.
- Penetration > 25% in all geographies.
-
Healthy growth of main business lines, Cash Today,
Forex and Corban.
(1) Figures according to IAS 21 & 29 (hyperinflation accounting).
6
Corban, correspondent banking business
Prosegur Corban geographies | Main customer benefits |
4. Transformation
Javier Hergueta - CFO
Corban models
Honduras
ColombiaBrazil
Ecuador
Peru
Uruguay
Complete control of cash cycle in one single trustable partner
Distribution networks efficiencies
Increased capillar reach
Increased end-customer services
Technology and operational support efficiency
1. ROBUST MODEL
Proprietary banking point profiting from direct cost arbitrage.
2. RETAIL MODEL
Retail service sites providing gains in capillarity, service diversification and efficiency.
3. DIGITAL MODEL
Digital customer interaction, web based distribution, digital banking.
Corban KPIs
Main benefits for Prosegur Cash
- Revenue +100M €
- Average EBITA margin 14-16%
- +1.000 robust sites & +40.000 retail sites.
- Robust sites, partnered with over 10 banks.
- +164M annual transactions.
- Encourages the use of Cash in society.
- Allows for synergies with core business.
- Enables cross-selling other CASH products.
- Operation does not vary in the digital world.
- Scalable platform investment.
7
Regional dynamics
Latam (1) (2), 63% of group sales
Sales | Transformation | ||
(M€) | (M€, % sales) | ||
Org: | +74.7% | ||
Inorg: | 0.0% | ||
FX(2): | (77.2%) |
Europe, 33% of group sales
Sales | Transformation | |
(M€) | (M€, % sales) | |
Org: | +11.3% | |
Inorg: | +2.6% | |
FX(2): | +0.4% |
5. Regional dynamics | |||
Miguel Bandrés - IRO | |||
Asia Pacific, 4% of group sales | |||
Sales | Transformation | ||
(M€) | (M€, % sales) | ||
Org: | +12.0% | ||
Inorg: | (60.3%) | ||
FX(2): | (1.9%) |
-2.5% | |
304 | 297 |
3M 2023 | 3M 2024 |
7.8% | |
92 | 99 |
33.3% | |
30.1% | |
3M 2023 | 3M 2024 |
14.3% | |
136 | 155 |
3M 2023 | 3M 2024 |
34.1% | |
46 | |
34 | |
29.5% | |
25.1% | |
3M 2023 | 3M 2024 |
-50.2% | |
37 | |
18 | |
3M 2023 | 3M 2024 |
-41.9% | |
8 | |
5 | |
25.6% | |
21.9% | |
3M 2023 | 3M 2024 |
- Sales (2.5%) affected by currency impact.
- Transformation products increase penetration > 33%.
- Organic growth +11.3%.
-
Transformation products improving
+34.1%. - Double digit growth in Cash Today and Forex solutions.
- Organic growth +12.0%.
- Accounting for Australia under equity method impacting sales.
- Transformation products penetration weighting +370b.p.
(1) Figures according to IAS 21 & 29 (hyperinflation accounting); (2) Includes FX and IFRS 21 & 29 impact. | 8 |
Conclusions: Significant improvement in net income
6. Conclusions Javier Hergueta - CFO
Sales -1.4%
- Growth ex M&A +2.7%.
- Double-digitorganic growth in all geographies.
- Gradual compensation in Argentina for devaluation.
EBITA Margin
10.7%
-
EBITA affected by restructuring costs in Australia, with no cash flow impact, and
Forex openings costs. - Net profit Improved +25.2% on lower financial costs.
Transformation 31.7% s/sales
- Penetration > 30% total sales.
-
Growth levered in key solutions:
Cash Today, Corban and Forex.
FCF 1M €
- Cash generation affected by calendar effect.
- Investment effort on Forex expansion.
Other
- MSCI rating upgraded to BB.
- Treasury stock 2.5% of capital redemption.
-
India to be consolidated as of
April 1.
9
Earnings Presentation
Q1 2024
Q&A
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Prosegur Cash SA published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 14:36:14 UTC.