RESULTS PRESENTATION. FY 2018 Cash in the media Relevant news Cash - PowerPoint PPT Presentation

RESULTS PRESENTATION. FY 2018

Cash in the media Relevant news Cash payment limit proposed by Spain No Hurry, No Rush: Central bank digital seems disproportionate for the ECB. currency?. The European Central Bank (ECB) has issued an opinion on a A study conducted by the Bank for International Settlements draft law on measures for the prevention of and fight against (BIS) stated that the main institutions remain cautious when fiscal fraud considering disproportionate the cash payment asked about the possibility of launching digital currencies in limit established by the Spanish government. their markets. The BIS reported that more than 85% of central Among other things, the Bank stated that digital means of banks, representing over 90% of global economic output and payment "are not always fully comparable alternatives" to 80% of the world’s population, commented that they are cash and that cash payments continue to be "very important either unlikely or very unlikely to issue any type of e-currency for certain social sectors." in the sort and medium term. Source: BCE Source: BPI Japan’s cash addiction will not be easily Amazon enables cash payment for its broken customers in ten countries. An article in the Financial Times (FT) concludes that although The company announced that it will allow other means of the Japanese government has positioned itself openly against payment for its customers, after making an alliance with cash, its withdrawal will not be easy as the state’s vision of a Western Union. cashless society will have to overcome some fundamental This initiative will provide greater access to their products for aspects of the Japanese culture (i.e. the anonymity, the customers who, to a large extent, were excluded from e- portability, the resilience to catastrophes, the distrust of banks commerce purchases due to the lack of payment methods. and the sense of ownership). Source: FT Source: Businesswire 2

Agenda 1. Highlights of the period 2. Regional overview 3. Financial results 4. Final remarks 5. Annex: Income statement reconciliation 3

Highlights of the period Main themes 1 • Strong currency depreciation still not offset by inflation Macro Environment • Argentina classified as hyperinflationary country (IAS 21 & 29) during 3Q 2018 2 • Local currency growth accelerating to 12.0% despite France and Australia Agility • EBIT margin improving in local terms. Our consolidated EBIT margin was mainly impacted by forex, France and Australia and indirect costs 3 • ̴ 100 M € invested in 9 transactions closed during 2018 Consolidation • We have reinforced our existing operations and achieved a leadership position in new geographies 4 • New products reached 11.8% of total sales Transformation • Sales grew 23% in euro terms fueled by Smart Cash solutions, AVOS and ATMS 5 • Free Cash Flow reached 151 M € Cash Flow Generation • Higher investments in Smart Cash solutions (+22%) versus previous year 4

Agility Local currency growth increases Local growth (1) by quarter 13.1% 12.9% 11.3% 10.5% 1Q 2018 2Q 2018 3Q 2018 4Q 2018 EBIT margin improves in local currency despite all the effects (1) Includes organic and inorganic growth 5

Consolidation M&A acceleration. We improve our footprint in both existing and new geographies M&A investment (M € ) 2x ̴ 100 43% ̴ 50 57% 100% FY 2017 FY 2018 New Geography Existing Geography  9 deals closed during 2018  Annualtarget 50M € - 150M € 6

Transformation The "momentum" remains positive. New Products increase their weight on sales New products as a % of sales 310 pb 11.8% 230 pb 8.7% 6.4% FY 2016 FY 2017 FY 2018  FY 2018 Sales 205 M €  Growth 22.9 % (> 45% ex-forex) 7

Agenda 1. Highlights of the period 2. Regional overview 3. Financial results 4. Final remarks 5. Annex: Income statement reconciliation 8

Regional overview LatAm [66% sales in 2018 (1) vs. 71% in 2017] Sales (M € ) New Products (M € ) EBIT (M € ) Org: +12.4% % sales Inorg: +2.7% -16% +23% -23% FX (2) : (30.7)% 1,360 126 323 1,148 103 247 7.6% 11.0% 23.8% 21.5% FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 • Comparison vs. previous year affected by • Smart Cash, ATMs and AVOS • Change in mix due to the forex and one-offs in 2017 the hyperinflationary accounting in 2H • Higher contribution from inorganic growth • Margin dilution due to M&A and (Central America) integration costs • Currency depreciación increased by the adoption of IAS 21 & 29 (1) 2018 figures according to IAS 21 & 29 (hyperinflation accounting); (2) Includes FX and IAS 21 & 29 9

Regional overview Europa [28% sales in 2018 vs. 24% in 2017] Sales (M € ) New Products (M € ) EBIT (M € ) Org: +2.4% % sales Inorg: +3.2% +6% +34% -17% FX: 0.0% 491 73 41 465 34 54 11.7% 14.8% 8.8% 6.9% FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 • Organic growth improvement despite • Smart Cash and AVOS • Yellow vests and investment France acceleration in our French operations to create a national operator for • M&A complementing our organic upcoming tenders growth strategy 10

Regional overview AOA [5% sales in 2018 vs. 5% in 2017] Sales (M € ) New Products (M € ) EBIT (M € ) Org: (15.5)% % sales Inorg: +14.4% -7% -36% FX: (5.9)% -246% 99 10 92 -4 6 -13 9.7% 6.6% (4)% (15)% FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 • Gradual recovery of Australia • Decrease in ATM services due to • Margin negatively impacted by the contracts lost in 2017 lack of volumen and restructuring • M&A contribution from the Philippines initiatives in Australia • Currency depreciation • Integration costs in the Philippines 11

Agenda 1. Highlights of the period 2. Regional overview 3. Financial results 4. Final remarks 5. Annex: Income statement reconciliation 12

Financial results Profit and loss account (1) FY 2017 FY 2018 % VAR Million Euros 1,732 Sales 1,924 -10.0% Local growth partially offsetting currency 340 EBITDA 428 -20.5% Margin 22.2% 19.7% effect and the application of IAS 21 & 29 Depreciation (51) (55) 8.2% 285 EBITA 377 -24.4% Translational risk with no impact in the Margin 19.6% 16.5% underlying business Amortization of intangibles (17) (17) 1.3% 268 EBIT 360 -25.6% Margin 18.7% 15.5% Consolidated EBIT margin mainly impacted Financial result (1) (4) by the change in mix, France and Australia 264 EBT 360 -26.5% 15.3% Margin 18.7% and indirect costs Taxes (124) (90) -27.2% Tax rate 34.4% 34.0% Financial result dragged by the application Net Profit from continuing 174 236 -26.2% operations of the hyperinflation accounting (non-cash Margin 12.3% 10.1% item) 174 Net Consolidated Profit 236 -26.2% Margin 12.3% 10.1% (1) 2018 figures according to IAS 21 & 29 (hyperinflation accounting). 2017 business figures exclude the impact of the intercompany transactions between P. Cash and PCS associated to the IPO restructuring process in 2017. For reconciliation purposes between accounting and business figures please refer to the Annex at the end of this presentation. 13

Financial results Cash Flow (1) FY 2017 FY 2018 Million Euros EBITDA 428 340 Smart Cash investment increased +22% Provisions and other non-cash items 6 18 Income tax (121) (101) Acquisition of PP&E (105) (97) Changes in working capital (11) (9) Working capital improvement Free Cash Flow 197 151 % Conversion (2) 75% 71% Interest payment (16) (6) Payments for acquisitions of subsidiaries (48) (62) Lower interest payments Dividend payment (41) (95) Restructuring Operations 106 18 Others 3 (36) M&A acceleration and dividend Total Net Cash Flow 201 (30) increase Net financial position (beginning of the period) (611) (424) Net increase / (decrease) in cash 201 (30) Exchange rate (14) (37) Advanced income tax payment (36 M € ) Net financial position (end of the period) (424) (491) (1) 2018 figures according to IAS 21 & 29 (hyperinflation accounting); (2) Conversion ratio: (EBITDA - Capex) / EBITDA 14

Financial results Total net debt Million Euros Total net debt reconciliation Total net debt variation (December 2018) (December 2017 vs December 2018) 58 547 111 547 491 -2 95 431 55 6 -151 Net financial Deferred Treasury Total net debt Total net Free Cash Interest Others(2) Dividend M&A & Total net position payments stock Dec. 2018 debt Dec. Flow payments payments deferred debt Dec. Dec. 2018 2017(1) payments 2018 (3) Rating S&P Average Net debt / BBB EBITDA (4) Cost of Debt 2.02% 1.6x Outlook stable (October 2018) (1) 2017 Total net debt reached 431 M € , being the Net financial position 424 M € , the deferred payments 9 M € and the Treasury stock 2M € ; (2) Others include the cash inflow due to the sale of the Brazilian security business, the negative fx rate impact and the cash outflow due to the advanced income tax payment; (3) M&A & deferred payments include the M&A cash outflow and the variation of deferred payments between 2017 and 2018; (4) 2018 figures according to IAS 21 & 29 (hyperinflation accounting) 15