Prosegur Compañía de Seguridad S A : FY2019 Results Presentation

Cash in the media

Democracy: Financial Rights are Human Rights

A healthy democracy needs financial privacy. If all our behaviours and all our movements are tracked, this can damage democracy in a fatal way. Trade-offs are made between convenience and speed versus privacy and freedom.

Source: Alex Gladstein (CSO at the Human Rights Foundation)

E-commerce: Credit card fraud increases by 30%

Credit card fraud in e-commerce increased last year, at the same rate as the number of transactions. On the other hand, according to the ECB, the fraud in notes decreased and evolved inversely to the e-commerce.

Source: Instituto Coordenadas de Gobernanza y Economía Aplicada

Sweden: New bill ordering banks to provide cash services

ECB welcomes Swedish draft law and highlights the importance that all the "Member States" take the appropriate measures to ensure that credit institutions and branches operating within their territories provide adequate access to cash services, to facilitate the continued use of cash.

Source: Swedish Government / ECB

New York: It will force its businesses to receive cash payments to avoid the "cashless" trend

The Big Apple thus joins other cities such as Philadelphia, San Francisco and New Jersey. The law aims to protect and prevent discrimination against many consumers with low income and who do not have access to debit or credit cards..

Source: New York Times

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Agenda

1. Highlights of the period
2. Regional dynamics
3. Financial results
4. Conclusions

Main themes

1

Macro

Environment

2

Agility

3

Consolidation

4

Transformation

5

Financial

Discipline

1.

Highlights of the period

• Negatively impacted by the currency depreciation and the application of the hyperinflationary accounting in Argentina(IAS 21 & 29)
• Local currency growth close to 17.0%(1)in FY 2019
• Operating margin improvement( ~150 bp in EBITA and EBIT vs. FY 2018)
• 6 acquisitions completed (Accumulated EV ~85 M€)
• Divestments in South Africa(June)and France (July)
• New Products reached 16.2% of total sales(vs. 11.8% in FY 2018),growing 42% vs. FY 2018
• Free Cash Flowgenerationof 213 M€
• Deleverage(ND/EBITDA 1.6x).S&P IG Rating (BBB) maintained

(1) Includes organic and inorganic growth

4

Agility

1.

Highlights of the period

% Accumulated local(1)growth

IAS 21/29

				15.0	16.8	18.0	16.7
			11.9
10.5	10.9	11.6
3M	6M	9M	FY	3M	6M	9M	FY
	2018				2019

• Steady improvementinlocal growth and margins:
• • Positive evolution of the underlying business

% Accumulated operating margin	▪

% EBITA	20.5	18.8	IAS 21/29
		17.3					18.0
			16.5		16.4	16.9
				15.2
								▪
% EBIT	19.6	18.0	16.3					16.9
		15.5		15.4	15.9
			14.2
	3M	6M	9M	FY	3M	6M	9M	FY
		2018			2019

Additional temporary volumes in

LatAm (3Q / 4Q)

M&A contribution and strategic divestments

(1) Includes organic and inorganic growth

5

Consolidation

1.

Highlights of the period

• 6 dealsin FY 2019 (3 LatAm, 2 Europe, 1 AOA). EV ~85 M€
• Portfolio Managementinstrumented through divestments in South Africa and France
• Solid M&A pipeline. Investment target for 2020 between 50- 150 M€

6

Transformation

1.

Highlights of the period

New Products sales(1)(M€) and weight over Total Sales (%)

300				292	35
250			CAGR		30
			+38%
			205
200					25
		167
150					20
111			16.2%
100					15
			11.8%
50		8.7%			10
6.4%
0						5
FY 2016	FY 2017	FY 2018	FY 2019

• New Products sales reached 292 M€,representing a16.2% of the total revenues
• Positive growth dynamics remain in place(FY 2019 Sales + 42% vs. FY 2018)
• Strong performance ofSmart Cash solutions, AVOS and ATMs

(1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting)

7

Agenda

1. Highlights of the period
2. Regional dynamics
3. Financial results
4. Conclusions

LatAm[66% of the total sales in FY 2019] (1)

Million Euros	FY 2018	FY 2019	% VAR
Sales	1,148	1,185	+3.2%
Organic			+16.3%
Inorganic			+6.2%
Forex(2)			(19.2)%
EBITA	259	290	+11.9%
Margin	22.6%	24.5%
Amortiz. of intangibles	(12)	(15)
EBIT	247	275	+11.2%
Margin	21.5%	23.2%

New Products:

Sales (M€) and Weight (%)

2.

Regional dynamics

• Organic growth slightly above first nine months of 2019:
• • Overall positive contribution
  • Additional temporary volumes in some countries
• Inorganic contribution in linewith previous quarters
• Adverse currency impact in FY 2019,although less than in the previous year

200		192	35
150	126		30
	25
100		16.2%	20
50	11.0%		15
		10
0	FY 2018	FY 2019	5

• New Products increased by 52%,representing 16.2% of total revenues
• Operating margin improvement vs. FY 2018

(1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting). In addition, 2019 figures are reported according to IAS 16 (leasings), in force since 1Q 2019; (2) Includes FX and IAS 21 & 29 impact.

9

Europe[28% of the total sales in FY 2019] (1)

Million Euros	FY 2018	FY 2019	% VAR
Sales	491	509	+3.6%
Organic			+4.8%
Inorganic			(1.2)%
Forex			0.0%
EBITA	37	39	+6.9%
Margin	7.5%	7.7%
Amortiz. of intangibles	(3)	(2)
EBIT	34	37	+8.5%
Margin	6.9%	7.3%

New Products:

2.

Regional dynamics

• Solid organic trend during the year:
• • Some slowdown in Q4 due to complete divestment of France
• Inorganic growth effortdiluted by the sale of France

Sales (M€) and Weight (%)

100		94	35
80	73		30
60		18.5%	25
	20
40	14.8%
	15
20			10
0	FY 2018	FY 2019	5

• New Productscontinue gaining weight within the sales mix and achieved 18.5% of the total sales
• Slight recovery in the operating margin that should continue in 2020

(1) 2019 figures are reported according to IAS 16 (leasings), in force since 1Q 2019

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AOA[6% of the total sales in FY 2019] (1)

Million Euros	FY 2018	FY 2019	% VAR
Sales	93	105	+13.3%
Organic			(4.4)%
Inorganic			+19.2%
Forex			(1.5)%
EBITA	(11)	(6)	+45.6%
Margin	(12.0)%	(5.8)%
Amortiz. of intangibles	(2)	(1)
EBIT	(13)	(7)	+45.7%
Margin	(14.6)%	(7.0)%

New Products:

Sales (M€) and Weight (%)

8			40
6	6	6	30
4			20
2	6.6%	5.4%	10
0	FY 2018	FY 2019	0

2.

Regional dynamics

• Regarding the organic growth of the region:
• • Australiaremains in line with previous quarters
  • Partially offset by the positive performance of thePhilippines
• Focus on the sale of new solutions
• FY 2019 operating margin impacted by:
• • South African divestment
  • Integration costs from Indonesia

(1) 2019 figures are reported according to IAS 16 (leasings), in force since 1Q 2019

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Agenda

1. Highlights of the period
2. Regional dynamics
3. Financial results
4. Conclusions

Profit and Loss Account(1)

Million Euros	FY 2018	FY 2019	% VAR
Sales	1,732	1,799	+3.9%
EBITDA	340	408	+19.8%
Margin	19.7%	22.7%
Depreciation	(55)	(84)
EBITA	285	323	+13.5%
Margin	16.5%	18.0%
Amortiz. of intangibles	(17)	(19)
EBIT	268	305	+13.7%
Margin	15.5%	16.9%
Financial result	(4)	(45)
EBT	264	260	(1.7)%
Margin	15.3%	14.4%
Taxes	(90)	(91)
Tax rate	34.0%	34.9%
Net Profit from	174	169	(3.0)%
continuing operations
Margin	10.1%	9.4%
Net Consolidated	174	169	(3.0)%
Profit
Margin	10.1%	9.4%

3.

Financial results

• Sales growth in euro terms (+3.9%):
• • Organic growth (c.12%), inorganic growth (c.5%), forex(2)(c.-13%)
• Operating margin improvement in absolute and relative terms:
• • Efficiency programs
  • Operating leverage
  • Synergies from acquisitions
  • Sale of South Africa and France
• Financial result impacted by several factors,mostlynon-cashitems

(1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting). In addition, 2019 figures are reported according to IAS 16 (leasings), in force since 1Q 2019; (2) Includes FX and IAS 21 & 29 impact.

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Cash Flow (1)

Million Euros	FY 2018	FY 2019
EBITDA	340	408
Provisions and other items	20	31
Income tax	(101)	(88)
Acquisition of PP&E	(97)	(104)
Changes in working capital	(9)	(34)
Free Cash Flow	153	213
% Conversion(2)	71%	74%
Interest payments	(6)	(10)
Payments for acquisitions of	(62)	(16)
subsidiaries
Dividend payment	(95)	(110)
Restructuring operations	18	-
Others	(38)	(13)
Total Net Cash Flow	(30)	63
Net financial position (BoP)	(424)	(491)
Net increase / (decrease) in cash	(30)	63
Exchange rate	(37)	(32)
Net financial position (EoP)	(491)	(460)

3.

Financial results

• Conversion ratio improved,reaching 74% in the period
• Acceleration in Smart Cash capex investments(+41% vs. FY 2018)
• Higher working capital outflowdue to higher growth in local currency terms,partially offset by the increase in provisions and other items due to the sliding of some payments to 1Q 2020
• Deferred payments and M&A disbursementsnet from divestments in South Africa and France
• Dividend cash out increased in FY2019

(1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting) and IAS 16 (leasings); (2) Conversion ratio: (EBITDA - Capex) / EBITDA

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Total Net Debt

Leverage and Total Net Debt evolution

3.

Financial results

Leverage ratio		1.6x		1.8x		1.6x
Total Net Debt			653			654
(Million Euros)	547	58			90
		105
	58	105

• Deleverage in FY 2019
• • Total Net Debt to LTM EBITDA of 1.6x

Deferred payments

491

491

460

IAS 16 related debt

Treasury stock

Net financial position

-2

-2

-2

FY 2018

FY 2018

FY 2019



Deferred payments increased as a result of

Proforma

the M&A executed throughout 2019

Debt maturity profile (main facilities)

600					600
		300
300
250						FCF		Debt maturities mostly concentratedin 2025
200
					FY 2019	and 2026
150
100	44						Eurobond
50						Syndicated facility Australia
0	2020	…	2025	…	2026		RCF
…

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Balance Sheet(1)

Million Euros	FY 2018	FY 2019
Non-current assets	937	1,089
Tangible fixed assets	333	437
Intangible assets	535	592
Others	69	60
Current assets	769	845
Inventories	20	14
Trade receivables and others	475	524
Cash and cash equivalents	274	307
Assets held for sale	1	-
TOTAL ASSETS	1,706	1,934
Net Equity	238	244
Non-current liabilities	866	903
Financial liabilities	688	721
Other non-current liabilities	178	182
Current liabilities	602	788
Financial liabilities	132	242
Other liabilities	470	546
Liabilities held for sale	-	-
TOTAL EQUITY AND LIABILITIES	1,706	1,934

3.

Financial results

• Tangible fixed assets increaseddue to IAS 16 and capex investments
• Intangible assets increaseddue to M&A investments
• Higher debtdue to IAS 16 and M&A deferred payments

(1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting). In addition, 2019 figures are reported according to IAS 16 (leasings), in force since 1Q 2019

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Agenda

1. Highlights of the period
2. Regional dynamics
3. Financial results
4. Conclusions

ESG commitment

4.

Conclusions

Global objective of reducing armoured vehicle fleet CO2emissions over sales

Introduction ofelectric, hybrid and lighter vehicles

• 100% vehicle oil recycling
• Global objective of reduction and recycling of plastics ("Circular Economy"objective)
• Reduction of paper consumptionbased ondigital transformation project("Electronic Signature")

New agreement withelectric power supplier in Spain guaranteeing that100% of the electricity supply comes fromrenewable sources

Signature of a new "Equality and Inclusion Plan",

reinforcing Prosegur Cash commitment to prevent discrimination and to avoid any gender gap

Committee to improve Health & Safety with the goal of achieving"zero recurrences" and a budget to deploy measures to reach that target

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Summary of the year

Mid-Term Commitment

• Agility:
• • Mid-singledigit organic growth in € terms
  • Maintain or slightly expand our operating margins (EBITA / EBIT)
• Consolidation:
• • M&A investments: 50 - 150 M€ p.a
• Transformation:
• • Increase % of new solutions within our revenue mix
• Leverage:
• • Keep Total Net Debt to EBITDA < 2.5x
• Dividend Policy:
• • Payout ratio between 50 - 60%

4.

Conclusions

2019 Performance

• Agility:

•	Organic growth	~12%
•	Inorganic growth	~5%	×
•	Negative Forex impact	~(13)%

• • Operational profitability improvement vs. FY 2018~150 pb
• Consolidation:

• M&A Investment ~85 M€

• Transformation:
• • New Products represented16.2% over salesin 2019 (11.8% in FY 2018)
• Leverage:
• • Leverage ratio:1.6x(IAS 16 included
• Dividend Policy:

• Payout ratio: 50%

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Legal Disclaimer

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This document may contain projections or estimates concerning the future performance and results of Prosegur Cash's business. These estimates derive from expectations and opinions of Prosegur Cash and, therefore, are subject to and qualified by risks, uncertainties, changes in circumstances and other factors that may result in actual results differing significantly from forecasts or estimates. Prosegur Cash assumes no liability nor obligation to update or review its estimates, forecasts, opinions or expectations.

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This document has been provided for informative purposes only and does not constitute, nor should it be interpreted as an offer to sell, exchange or acquire or a request for proposal to purchase any shares in Prosegur Cash. Any decision to purchase or invest in shares must be taken based on the information contained in the brochures filled out by Prosegur Cash from time to time.

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CONTACT INFORMATION:

Pablo de la Morena

Investor Relations Director

Tel: [phone]

[e-mail]