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

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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.