Prosegur Cash Obtained a net profit of 28 million euros in the first quarter of 2020

Madrid, 26 May 2020. Prosegur Cash posted sales of 415 million euros in the first three months of 2020, which is 3.9% lower than in the same period last year. Operations showed good local currency behaviour with growth (including organic and inorganic) close to 9%, although the currency progression has been unfavourable.

EBITA for Prosegur Cash during the first quarter of the year, reaching €53 million and a margin of 12.7%, was affected by a lower level of activity associated with the COVID-19 response measures, the dilutive effect of acquisitions and the impact of the exchange rate. Finally, Prosegur Cash obtained a consolidated net profit of €28 million during the reference period, which was 10.7% less than the same period last year.

In terms of cash flow, Prosegur Cash generated 23 million euros of Free Cash Flow, maintaining a conversion ratio of 79%, which was in line with the same period last year. Finally, total net debt, including IFRS 16, deferred payments and treasury stock, was 757 million euros at the end of the first quarter. A figure that reflects the inorganic activity performed during the first quarter and represents a net financial debt to EBITDA ratio of 1.9.

In terms of development of the activity by geographical regions:

Latin America reported sales of €272 million. The region contributed 65% of the total turnover and maintained a 15.5% growth in local currency. However, as a result of the unfavourable currency behaviour, sales in Euros were 4% less than in the same period in 2019. It is worth noting that Prosegur Cash completed three acquisitions during the first quarter of 2020 in Brazil, Colombia and Ecuador and disinvested in the cash-in-transit activities in Mexico.

Europe represented 28% of total sales with a turnover of €118 million, a 5% drop compared with the first quarter of 2019. The reduction in sales in Europe is due to the lower volume and amount carried from COVID-19 as well as the divestiture made in France in the third quarter of 2019.

The AOA (Asia, Oceania and Africa) region contributed 6% of the sales with a turnover of €26 million, 1% more in relation to the first three months of 2019.

Finally, activities corresponding to the New Products unit have maintained their growth rate, reaching €76 million in the first quarter. This means that the New Products now represent 18.2% of the total turnover of Prosegur Cash. In Latin America, new services grew by 20% to €49 million, especially driven by Prosegur Smart Cash (cash management automation services at point of sale) and Prosegur AVOS (outsourcing unit of high-value-added services). The new services are also growing in Europe, which increased by 12% to €25 million, and AOA, where they were up 6%.

COVID-19 Situation

The first quarter of 2020 has been marked by the impact of the COVID-19 Coronavirus.

In this regard, Prosegur Cash services have been declared an essential service and the activity, although it has reduced, has remained constant, ensuring customers receive a quality service. Given this situation, the company recognises and appreciates the extraordinary work carried out by all of its teams.

Furthermore, in these difficult times, the company has demonstrated the necessary capacity to respond, aligning its operations to the current situation and implementing measures to preserve cash generation. Among other initiatives, Prosegur Cash has implemented preventive measures, developed contingency plans to ensure business continuity and invested heavily in both occupational health and safety measures and the reinforcement of teleworking capabilities.

Prosegur Cash shall continue to work to ensure society as a whole can access cash, a universal and inclusive means of payment which, as determined by various institutions, is safe.