Results Presentation FY 2019 1
FY 2 0 1 9 HIGHLIGHTS OF THE PERIOD REVENUE PROFITABILITY SOUND GROWTH IMPROVEMENT FINANCIALS 6.6 % 9.7 % Increase EBIT Good Cash Flow in € terms Growth generation Excellent growth in local Profitability boosted by new Continued improvement in currency above 15% products and general operating cash flow generation improvement of traditional and resistant to adverse FX Organic growth over 9% businesses supplemented also by strong 72% EBITDA conversion ratio and inorganic activity Very good performance of the low level of debt Alarms business
FY 0 2 1 9 HIGHLIGHTS OF THE PERIOD New Products in Cash Telefónica – Prosegur USA and Security Partnership • Integration of acquisitions in a very late state • Increased market penetration in • Approved by the regulatory both business lines entity • Organic growth exceeds the forecast • Annual growth rates above 40% • Operational structure already in in Cash and 27% in Integrated place Security Solutions M&A Argentina Shares Buy-back programme • Transactions made in USA, • Extraordinary additional volumes Indonesia, Colombia, Brazil, seasonal growth, enhanced by • High advanced state Singapore, Germany, Spain and stable FX in the quarter • Acquired treasury stock above Argentina • Normal repatriation of benefits 5% of capital in 2019 • Divestments in Alarms (India & Turkey) and in Cash (France & South Africa)
P&L % Consolidated Results FY 2018 FY 2019 Variation Sales 4,198 3,939 6.6% EBITDA 456 536 +6.6% 17.6% Margin 11.6% 12.8% +6.5% -9.0% Depreciation (129) (178) 4,198 EBITA 358 327 9.5% +9.1% 3,939 Margin 8.3% 8.5% Amortization of intangibles (26) (28) EBIT 301 330 9.7% Margin 7.7% 7.9% FY 2018 Org Inorg FX (1) FY 2019 (21) (66) Financial result ! Profit before tax 280 265 (5.4)% Margin 7.1% 6.3% • Excellent growth in local currency Tax (100) (105) above 15% Tax rate 35.7% 39.5% • EBIT improvement close to 10% , Net Profit 180 160 (11.0)% driven by new products Minority Interest 48 46 • Financial result impacted by FX Consolidated Net Profit 132 114 (13.9)% Earnings per share 0.2 0.2 (Euros per share) (1) Includes exchange rate effect and IAS 21 & 29 4 Amounts in Eur. millions - 2018 & 2019 figures have been elaborated applying IAS 21 & 2 9, additionally 2019 figures also include the application of IAS16 -
Consolidated Revenues by Region and Business Line Revenues by Region Revenues by Business Line +1.7% +19.7% +116.5% +16.7% +13.8% +16.3% +8.3% +2.2% +1.7% +3.9% 2,108 (2) +116.6% 2,087 2,042 +6.2% 1,946 1,770 1,799 1,740 1,732 342 278 262 158 Europe Ibero- RoW Cash Security Alarms America FY 2018 FY 2018 Growth in Local Currency ( 1 ) % FY 2019 FY 2019 Growth in Euros % (1) Includes organic growth and acquisitions - (2) Excludes CyberSecurity sales Amounts in Eur. millions - 5
Consolidated EBIT and Cash Flow Generation EBIT Cash Flow Generation +9.7% +2.4% 330 351 343 301 7.9% 7.7% 75% 72% (1) FY 2018 FY 2019 FY 2018 FY 2019 EBIT Margin % Cash/EBITDA EBIT Operating Cash Flow Continuous improvement in profitability EBIT: % accumulated margin IAS 21&29 9.9% 9.0% 7.9% 7.9% 7.7% 7.4% 7.0% 6.8% 3M 6M 9M 12M 3M 6M 9M 12M 2019 2018 (1) Normalizing the impact of IAS16 Amounts in Eur. Millions - 6
Results by Business Line Cash 1 Security 2 Alarms 3 7
PROSEGUR CASH Revenues New Products Profitability +13.7% +440 pb +3.9% 305 16.2% 268 +4.8% -12.8% 11.8% 1,799 +11.9% 8.7% 1,732 16.9% 15.5% 6.4% FY Org Inorg FX (1) FY FY 2016 FY 2017 FY 2018 FY 2019 FY 2018 FY 2019 2018 2019 EBIT Margin ! EBIT Continuous improvement of • New products reach 16.2% of • • Growth in local currency close margins vs. previous quarters total sales in 2019 to 17% • 3.9% Growth in Euro terms • NPs revenues grow by 42% YOY Divestments in South Africa and • fuelled by Smart Cash, AVOS France partially compensate • Sustained improvement in local and ATMs the negative effect FX currency growth (1) Includes exchange rate effect and IAS 21 & 29 8 Amounts in Eur. millions -
PROSEGUR SECURITY Revenues New Products (3) Profitability +21.3% +500 pb +8.3% 66 (4) 28% 54 -5.5% 2,108 (2) 23% +8.3% 20% 17% 3.1% +5.5% 1,946 2.8% FY Org Inorg FX (1) FY FY 2016 FY 2017 FY 2018 FY 2019 FY 2018 FY 2019 EBIT Margin 2018 2019 ! EBIT EBIT increase due to Brazil and • • Increased penetration of • Growth in local currency close to New Products Integrated Security Solutions 14% reaching 28% of current client Recurrent profitability • portfolio • 8.3% strong inorganic growth improvement normalizing driven by USA Cybersecurity, USA integration Spain leads growth • costs, and restructuring (1) Includes exchange rate effect and IAS 21&29 (2) Excluding Cybersecurity - (3) Excludes USA - (4) Excludes Overhead Costs, USA integration costs and Cybersecurity 9 Amounts in € millions - -
PROSEGUR ALARMS Installed Base Revenues ARPU +6.2% 578 38 38 +0.0% +10.4% 36 36 36 547 -10.1% 499 +16.3% 278 262 424 389 2015 2016 2017 2018 2019 FY 2018 Org Inorg FX (1) FY 2019 2015 2016 2017 2018 2019 ARPU of € 36 per month • Installed base increase close to 6% • Growth of more than 6% in Euros • over the same period of 2018 maintained despite the strong and 16% in local currency adverse FX • Surpassing the average global Affected by both macro and • Penetration of “Smart” Platform growth of the industry • strategic focus on quality of client exceeding 23% of the installed portfolio base Amounts in Eur. millions - Installed base in thousands of connections - ARPU in Euros - (1) Includes exchange rate effect and IAS 21 & 29 10
Financial Information Consolidated Cash Flow 1 Financial Position 2 Balance Sheet 3 11
Consolidated Cash Flow FY 2018 FY 2019 Cash Flow by Quarters 351 343 2017 456 536 EBITDA 330 2018 Provisions and other non-cash items 14 (12) 2019 (102) (114) Tax on profit (ordinary) 184 Changes in working capital (5) (48) 161 (20) (11) Interests payments 98 159 343 351 Operating cash flow 81 40 82 Acquisition of property, plant & 24 (214) (201) 6 equipment Q1 6M 9M FY (83) (146) Payments for acquisitions of subsidiaries Dividend payments (118) (107) (35) (79) Others EBITDA to CASH conversion ratio (2) (450) (533) 75% Cash flow from investing / financing 2017 72% 2018 63% (107) (182) 2019 Total net cash flow 49% 48% 40% 43% 33% (252) (425) Initial net financial debt 35% 33% (107) (182) Net increase / (decrease) in cash 18% Exchange rate (66) (43) 5% (425) (649) (1) Final net financial debt Q1 6M 9M FY (1) Excludes IAS 16 debt (2) Normalizing the impact of IAS16 Amounts in Eur. millions - 12
Financial position Net financial Debt • • Increase of 224 millions of euros (1) vs. December 2018, deriving mainly from inorganic growth initiatives and the shares buy-back programme. 1.5x 0.9x • Average cost of corporate debt: reduction of 30 basis points vs. the same period in 2018 ( 1.36% vs. 1.65%) Rating. Confirmation by S&P of BBB rating, stable Outlook • (October 9, 2019) 1.65% 1.44% 1.41% 1.38% 1.36% 116 109 95 78 61 649 594 603 581 425 133 132 132 IAS 16 Debt 127 -3 -15 -84 -91 -112 Dec. 2018 Mar. 2019 Jun. 2019 Sep. 2019 Dec. 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 13
Balance Sheet FY 2018 FY 2019 1,721 1,990 Non-current assets 745 881 Tangible fixed assets and real estate investments 842 984 Intangible assets 133 125 Others 2,099 1,986 Current assets 76 65 Inventory 975 1,071 Customer and other receivables 1,048 850 Cash and equivalents and other financial assets 3,820 3,976 TOTAL ASSETS 1,066 898 Net equity Share capital 37 36 (53) (108) Treasury shares 1,013 898 Retained earnings and other reserves 69 72 Minority interest ! 1,676 1,751 Non-current liabilities 1,392 1,452 Bank borrowings and other financial liabilities • Acquired treasury stock above 285 299 Other non-current liabilities 5% of share capital 1,077 1,327 Current liabilities Bank borrowings and other financial liabilities 151 302 • More than 80% of total Group 926 1,025 Trade payables and other current liabilities debt is of long-term nature 3,820 3,976 TOTAL NET EQUITY AND LIABILITIES 14 Amounts in Eur. millions - 2018 & 2019 figures have been elaborated applying IAS 21 & 2 9, additionally 2019 figures also include the application of IAS16
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