Results Presentation 6M 2019 1
Highlights of the period Revenues Cash Flow Strategy Debt Excellent growth in local currency of 14% Constant Divestments in improvement in Alarms India & operating cash Cash South flow generation Africa & France Continuous optimization of average cost of debt 2
P&L % Consolidated Results 6M 2018 6M 2019 (1) Variation Sales 2,055 2,011 2.2% EBITDA 251 247 (1.6)% +2.2% Margin 12.5% 12.0% 6.7% Depreciation (59) (88) -11.8% EBITA 159 192 (17.3)% 2,055 +7.3% 2,011 Margin 9.5% 7.7% Amortization of intangibles (11) (14) EBIT 181 145 (19.9)% Margin 9.0% 7.0% 6M 2018 Org Inorg FX (2) 6M 2019 (5) (28) Financial result ! Profit before Tax 176 117 (33.4)% Margin 8.8% 5.7% • Excellent growth of 14% in local Tax (64) (47) currency Tax rate 36.6% 39.9% • Softened FX impact Net Profit 112 71 (36.8)% • Profitability enhanced by Minority Interest 31 22 divestments in CASH and Alarms Consolidated Net Profit 81 48 (40.1)% Earnings per share 0,13 0,08 (Euros per share) (1) 2019 figures have been elaborated applying IAS 16, 21 & 2 9 - (2) Includes exchange rate effect and IAS 21 & 29 3 Amounts in Eur. millions -
Consolidated Revenues by Region and Business Line Revenues by Region Revenues by Business Line +1.0% +17.6% +118.8% +16.8% +10.8% +18.9% +3.1% -4.3% +1.0% +0.6% 1,083 1,027 +118.7% 1,036 996 +6.1% 868 888 883 859 151 140 132 69 Europe Ibero-America RoW Cash Security Alarms 6M 2018 6M 2018 Growth in Local Currency ( 1 ) % 6M 2019 6M 2019 Growth in Euros % (1) Includes organic growth and acquisitions Amounts in Eur. millions - 4
Consolidated EBIT and Cash Flow Generation EBIT Cash Flow Generation +19.5% -19.9% 181 98 82 145 39.9% 32.7% 9.0% 7.0% 6M 2018 6M 2019 6M 2018 6M 2019 EBIT Margin % Cash/EBITDA EBIT Operating Cash flow Amounts in Eur. millions 5
Results by Business Line Cash 1 Security 2 Alarms 3 6
PROSEGUR CASH Revenues Profitability New Products 410 bps -13.8% +0.6% 159 15.9% 137 +7.2% 11.8% -16.2% +9.6% 8.7% 18.0% 888 883 15.4% 6.4% 6M Org Inorg FX (1) 6M 6M 2018 6M 2019 FY 2016 FY 2017 FY 2018 6M 2019 2018 2019 EBIT Margin ! EBIT EBIT Margin improves in local • • 49% sales growth in euros vs. • Close to 17% growth in local currency terms same period last year currency Margin contraction in Euros • • Solid performance across all • Mitigating impact of currency explained by mix , indirect costs, solutions ( Smart Cash, AVOS depreciation and IAS 21&29 and situation in Australia and and ATMs ) and geographies France (1) Includes exchange rate effect and IAS 21 & 29 7 Amounts in Eur. millions -
PROSEGUR SECURITY Revenues Profitability (2) New Products (3) 320 bps -21.7% +3.1% 26 26.2% 23.0% 20 +7.0% -7.7% 20.0% 1,027 17.0% 2.6% 1.9% +3.8% 996 6M Org Inorg FX (1) 6M 6M 2018 6M 2019 FY 2016 FY 2017 FY 2018 6M 2019 2018 2019 EBIT Margin ! EBIT • Growth in local currency close • Increased penetration of • Profitability slightly affected by to 11% “Integra solutions ” reaching IAS 21&29 impact in Argentina, 26.2% of current client portfolio seasonality , and integration of • 7% inorganic growth driven by US acquisitions market entry in the US • Spain leads growth (1) Includes exchange rate effect and IAS 21 & 29 (2) Profitability in Security excluding Overhead Costs - 8 Amounts in Eur. millions - - (3) Excludes USA
PROSEGUR ALARMS Client Installed Base ARPU Revenues Bancarisation Non Bancarised +13.6% Bancarised +6.1% +5.1% 555 38 38 +0.5% 547 36 36 36 528 16.5% 25.2% 499 26.1% 28.5% 28.1% -12.8% 140 +18.4% 424 132 83.5% 73.9% 74.8% 71.5% 71.9% 2016 2017 2018 6M 6M 6M Org Inorg FX (1) 6M 2016 2017 2018 2019 Adds 2015 2016 2017 2018 6M 2018 2019 2018 2019 2Q 19 2019 ! • Increase in installed • Average ARPU of the last Sales in local currency • Increased bancarisation • base of 5% vs. year-end terms keep growing of newly acquired 5 years close to 37 2018 euros/month around 19% customers exceeding 83% • Focus on quality of client 6% growth in Euros • Positive trend in local • portfolio currency terms Amounts in Eur. millions - Installed base in thousands of connections - ARPU in Euros - (1) Includes exchange rate effect and IAS 21 & 29 9
Financial Information Consolidated Cash Flow 1 Financial Position 2 Balance Sheet 3 10
Consolidated Cash Flow 6M 2018 6M 2019 Cash Flow Generation +19.5% 251 247 EBITDA 98 (12) (5) Provisions and other non-cash items 82 (76) (63) Tax on profit (ordinary) 39.9% Changes in working capital (59) (68) 32.7% Interests payments (22) (13) 82 98 Operating cash flow Acquisition of property, plant & equipment (94) (98) 6M 2018 6M 2019 (14) (106) Payments for acquisitions of subsidiaries % Cash/EBITDA Dividend payments (69) (55) Operating Cash Flow (1) (2) Others (178) (261) Cash flow from investing / financing ! (96) (163) Total net cash flow • Solid cash flow generation, in line with previous quarters (252) (425) Initial net financial debt • EBITDA to cash conversion ratio (96) (163) Net increase / (decrease) in cash close to 40% Exchange rate (43) (7) (391) (594) (1) Final net financial debt (1) Excludes IAS 16 impact Amounts in Eur. millions - 11
Financial Position Net Financial Debt • • Increase of 169 million euros (1) vs. year-end 2018, derived 1.6x 0.7x mainly from inorganic growth initiatives • Average cost of debt: reduction of c. 40 basis points vs. the same period in 2018 ( 1.41% vs. 1.80%) 1.80% 1.71% 1.65% 1.44% 1.41% 95 78 54 61 594 581 37 458 425 391 127 133 IAS 16 Debt -3 -84 -91 -101 -106 Jun. 2018 Sep. 2018 Dec. 2018 Mar. 2019 Jun. 2019 Average Cost of Debt Deferred Payments Net Financial Debt Treasury Stock (2) Amounts in Eur. millions - (1) Excludes IAS 16 impact - (2) Treasury Stock of Prosegur and Prosegur Cash at closing market price of the period 12
Balance Sheet 6M 2019 (1) FY 2018 1,721 1,971 Non-current assets 745 890 Tangible fixed assets and real estate investments 842 942 Intangible assets 133 139 Others 2,099 2,106 Current assets 76 78 Inventory 974 1.063 Customer and other receivables 1 47 Non-current assets held for sale 1,048 917 Cash and equivalents and other financial assets 3,820 4,076 TOTAL ASSETS 1,066 1,086 Net equity 37 36 Share capital (53) (1) Treasury shares 1,013 967 Retained earnings and other reserves 69 84 Minority interest 1,676 1,734 Non-current liabilities ! 1,392 1,428 Bank borrowings and other financial liabilities 285 306 Other non-current liabilities • More than the 80% of total 1,077 1,257 Current liabilities Group debt is of long-term Bank borrowings and other financial liabilities 151 321 nature - 19 Liabilities associated to non-current assets held for sale 926 917 Trade payables and other current liabilities TOTAL NET EQUITY AND LIABILITIES 3,820 4,076 Amounts in Eur. millions - (1) 2019 figures have been elaborated applying IAS 16, 21 & 29 13
Conclusions and Final Remarks Remarkable solidness of the business 1 model proven by the strong growth in local currency Sustained profitability, positively 2 supported by divestments in Cash and Alarms Solid operating cash flow generation 3 and continuous improvement of EBITDA to cash conversion ratio Focus on optimizing the client portfolio 4 of Alarms through selective and customer quality oriented sales model Initiation of global deployments of 5 main Digital Transformation projects 14
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Antonio de Cárcer Cristina Casado Director of Investor Relations Investor Relations Tel: +34 91 589 83 29 Tel: +34 91 589 83 47 antonio.decarcer@prosegur.com cristina.casado@prosegur.com
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