Prosegur Cash S A : Interim financial statements for the first quarter of 2021

BUSINESS AREA

Prosegur CASH and subsidiaries

Interim quarterly financial information

Interim financial statements for the first quarter of 2021

(Free translation for the original in Spanish language version. In the event of discrepancy, the Spanish-language version prevails).

RESULTS FIRST QUARTER

Table of contents

1. Profit/(loss) for January to March 2021 and for January to March 20203

II. Performance in the period ...........................................................................	4
Interim financial statements (January - March 2021)....................................	5
1.	Performance of the business .......................................................................	5
2.	Significant events and transactions ............................................................	8
3.	Consolidated financial information ............................................................	9
4.	Alternative Performance Measures ..........................................................	14

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RESULTS FIRST QUARTER

1. Profit/(loss) for January to March 2021 and for January to March 2020

Million Euros

CONSOLIDATED RESULTS	1Q 2020	1Q 2021	% Var.
Revenue	415.3	345.5	-16.8%
EBITDA	75.7	76.1	0.5%
Margin	18.2%	22.0%
Depreciation Property, plant and Equipment	(23.1)	(21.6)	-6.2%
EBITA	52.6	54.5	3.5%
Margin	12.7%	15.8%
Amortization Intangible assets	(5.0)	(5.2)	4.0%
EBIT	47.7	49.3	3.4%
Margin	11.5%	14.3%
Net financial income/(expense)	(1.5)	(2.3)	46.8%
EBT	46.2	47.1	2.0%
Margin	11.1%	13.6%
Income tax	(18.4)	(14.1)	-23.3%
Net Result from continuing operations	27.8	33.0	18.7%
Net Result	27.8	33.0	18.7%
Non controlling interests	0.2	0.0	0.0%
Consolidated Net Result	28.0	33.0	17.9%
Margin	6.7%	9.5%
Earnings per share (Euros per share)	0.02	0.02

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RESULTS FIRST QUARTER

1. Performance in the period

Revenue at Prosegur CASH in the period from January to March of 2021 amounted to EUR 345.5 million, down 16.8% on the EUR 415.3 million in the same period of the previous year. Organic growth and inorganic growth have had a negative impact of 2.3% and a positive impact of 1.5%, respectively. The negative impact of the exchange rate and the result of applying IAS 29 and 21 has been 16.0%.

Likewise, EBITA in the reporting period amounted to EUR 54.5 million, implying a 15.8% ratio in relation to revenue.

The increase in EBITA compared to the same period of the previous year is explained by the net effect of the following impacts:

• Negative impact due to lower volumes as a result of the lockdowns established by the health authorities to combat the spread of COVID-19. Prevention measures in non-essential activities and a higher unemployment rate have forced the temporary closure of businesses and a contraction of the economy has impacted private consumption, which is the main segment of the CASH business.
• There has also been a depreciation of currencies, which has a negative translational impact on the CASH Group's profit/(loss).
• However, the negative impacts have been partially offset by the effort being made in containing operating and structural costs by the CASH Group and the extraordinary income of EUR 20.3 million, resulting from the sale to the Prosegur Group in March 2021 of certain areas of the added value outsourcing processes and services business (AVOS) for financial institutions and insurance companies, as well as their associated technology.

Consolidated net profit was EUR 33.0 million, compared to EUR 28.0 million in 2020.

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RESULTS FIRST QUARTER

Interim financial statements (January - March 2021)

1. Performance of the business

Details of the business performance of the main consolidated income statement items for the period January-March 2021 and their comparison for the period January-March 2020 is detailed below:

1. Revenue

Revenue at Prosegur Cash in the period January -March 2021 amounted to EUR 345.5 million, down 16.8% on the EUR 415.3 million in the same period of the previous year. Organic growth and inorganic growth have had a negative impact of 2.3% and a positive impact of 1.5%, respectively. The negative impact of the exchange rate and the result of applying IAS 29 and 21 has been 16.0%.

The table below shows the breakdown of Prosegur CASH's revenue by geographical area and business line:

	Million Euros
	Revenue		Europe			AOA			LatAm		Prosegur Cash Total
		2020	2021	% Var.	2020	2021	% Var.	2020	2021	% Var.	2020	2021		% Var.
	Cash in transit	60.3	47.9	-20.6%	16.7	15.8	-5.0%	164.9	122.5	-25.7%	241.9	186.2		-23.0%
	% of total	51.0%	48.3%		65.3%	58.8%		60.7%	55.8%		58.3%	53.9%
	Cash management	33.1	24.3	-26.5%	7.5	6.4	-13.6%	57.1	52.3	-8.4%	97.6	83.1		-14.9%
	% of total	28.0%	24.5%		29.2%	23.9%		21.0%	23.9%		23.5%	24.0%
	New products	24.8	27.0	8.7%	1.4	4.7	230.7%	49.5	44.6	-9.9%	75.7	76.2		0.6%
	% of total	21.0%	27.2%		5.5%	17.3%		18.2%	20.3%		18.2%	22.1%
	Total revenue			-16.1%			5.5%			-19.2%				-16.8%
	118.2	99.1	25.6	27.0	271.5	219.4	415.3	345.5

The worsening of the COVID-19 pandemic has resulted in the adoption of greater health restrictions. Prevention measures in non-essential activities and a higher unemployment rate have forced the temporary closure of businesses and a contraction of the economy, resulting in lower volumes and amounts transported in the CASH business. There has also been a depreciation of currencies. All this explains a general drop in the Transport and Cash in Transit Management Services.

Moreover, note the sound performance by New Products, which in terms of the percentage of the total revenue by region performed strongly in all geographical areas thanks to a combination of organic growth and selective acquisitions.

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