Prosegur Cash S A : Interim financial statement for the quarter of 2024

BUSINESS AREA

Prosegur CASH and subsidiaries

Interim quarterly financial information

Interim financial statements for the first quarter of 2024

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

	PROFIT/LOSS FIRST QUARTER
	Table of contents
I.	Profit/loss for January to March 2024 and for January to March 2023	...3
II.	Performance in the period	3
Interim financial statements (January - March 2024)	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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PROFIT/LOSS FIRST QUARTER

1. Profit/loss for January to March 2024 and for January to March 2023

CONSOLIDATED RESULTS	3M 2023	3M 2024	% Var.
Revenue	477.0	470.5	-1.4%
EBITDA	85.0	81.0	-4.7%
Margin	17.8%	17.2%
Depreciation Property, plant and Equipment	(25.2)	(30.7)	22.0%
Adjusted EBITA	59.8	50.3	-15.9%
Margin	12.5%	10.7%
Amortization Intangible assets	(6.3)	(6.5)	2.7%
EBIT	53.5	43.8	-18.1%
Margin	11.2%	9.3%
Net financial income/(expense)	(24.5)	(10.9)	-55.5%
EBT	29.0	33.0	13.5%
Margin	6.1%	7.0%
Income tax	(14.9)	(15.3)	2.4%
Net Result from continuing operations	14.1	17.6	25.2%
Net Result	14.1	17.6	25.2%
Non controlling interests	0.0	0.0	-
Consolidated Net Result	14.1	17.7	25.3%
Margin	3.0%	3.8%
Earnings per share (Euros per share)	0.01	0.01

1. Performance in the period

Prosegur CASH revenue in the period from January to March 2024 came to EUR 470.5 million, a drop of 1.4% with respect to the EUR 477.0 million in the same period the previous year. Organic growth had a positive impact of 51.8% and inorganic growth had, in turn, a negative impact of 3.9%. The negative impact of the exchange rate and the result of applying IAS 29 and 21 has been 49.3%.

Likewise the adjusted EBITA for the period of reference reached EUR 50.3 million, a 10.7% margin with regard to revenue. The reduction in adjusted EBITA compared to the same period the previous year amounts to 15.9%.

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PROFIT/LOSS FIRST QUARTER

The evolution in adjusted EBITA from January to March 2024 with respect to the same period the previous year is essentially explained by the following impacts:

• Steady business growth in local currencies: the CASH Group's businesses have shown resilience to the inflationary pressures triggered by armed conflicts in Europe and the Middle East, and to sudden changes in monetary policies.
• Negative impact of the Argentine peso exchange rate. The plans for adjustment introduced by the new government of Argentina in December 2023 included significantly reducing the fiscal deficit and sharply depreciating the exchange rate, which directly and adversely impacted the CASH Group's adjusted EBITA in the first three months of 2024.
• Non-recurringexpenses rose sharply after a step-up in store openings in the foreign exchange business, and due to restructuring costs associated with the CASH Group's merger in Australia in 2023.
• Growth in Transformation Products: Transformation Products continues to grow, underpinning the positive trend in this business line, which already represents 31.7% of total revenue.

Consolidated net profit increased by EUR 17.7 million, compared to EUR 14.1 million in 2023.

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PROFIT/LOSS FIRST QUARTER

Interim financial statements (January - March 2024)

1. Performance of the business

Details of the business performance of the main consolidated income statement items for the period January-March 2024 and their comparison for the period January-March 2023 is detailed below:

1. Revenue

Revenue at Prosegur CASH in the period from January to March 2024 amounted to EUR 470.5 million, down 1.4% on the EUR 477.0 million in the same period of the previous year. Organic growth had a positive impact of 51.8% and inorganic growth had, in turn, a negative impact of 3.9%. In addition, the negative impact of the exchange rate and the result of applying IAS 29 and IAS 21 has been 49.3%.

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

Million of Euros
Revenue 3M		Europe			AOA			LatAm		Prosegur Cash Total
	2023	2024	% Var.	2023	2024	% Var.	2023	2024	% Var.	2023	2024		% Var.
Cash in transit	65,2	69,7	6,8%	22,6	12,5	-44,7%	157,2	145,0	-7,8%	245,1	227,2		-7,3%
% of total	48,1%	44,9%		61,1%	67,8%		51,7%	48,9%		51,4%	48,3%
Cash management	36,4	39,7	9,2%	6,3	1,2	-80,6%	55,5	53,1	-4,3%	98,1	94,0		-4,1%
% of total	26,8%	25,6%		16,9%	6,6%		18,2%	17,9%		20,6%	20,0%
New products	34,1	45,8	34,1%	8,1	4,7	-41,9%	91,6	98,7	7,8%	133,9	149,2		11,5%
% of total	25,1%	29,5%		21,9%	25,6%		30,1%	33,3%		28,1%	31,7%
Total revenue						-50,2%			-2,5%				-1,4%
135,7	155,2	14,3%	37,0	18,4	304,3	296,8	477,0	470,5

CASH Group revenue have continued to grow at a very healthy pace in local currency, showing resilience to volatile monetary policies and the inflationary pressures unleashed by armed conflicts in Europe and the Middle East. This is because:

• The CASH Group has no direct exposure to the geographic areas of conflict, given that it does not operate in these territories.
• Inflationary impacts continue to be offset by trade flow, passing on the increase in labour costs to clients on a more recurring basis; additionally, cash in circulation remains robust.
• Sustained good acceptance of the commercial and operational proposals that the CASH Group is offering its clients.

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PROFIT/LOSS FIRST QUARTER

Furthermore, due to the differing performance of local currencies in several regions where the Group operates, coupled with the adjustments introduced by the new government of Argentina in December 2023, currency exchange has had a negative impact during the period from January to March 2024.

Lastly, the positive performance of Transformation Products is worthy of note, which have continued to grow and increase their total percentage of revenue thanks to a combination of organic growth. In relative terms, the growth of Transformation Products for the first few months of 2024 was 11.5% compared to the same period of the previous year.

The table below shows revenue growth by region, with a breakdown of the contribution by organic growth, the effects of changes in the consolidation scope and, finally, the exchange rate impact:

Million of Euros

Revenue

		3M 2023	3M 2024	% Var.	Organic	Inorganic	Exchange
		Rate
Europe	135.7	155.2	14.3%	11.3%	2.6%	0.4%
LatAm	304.3	296.8	-2.5%	74.7%	0.0%	-77.2%
AOA	37.0	18.4	-50.2%	12.0%	-60.3%	-1.9%
Total revenue					51.8%	-3.9%	-49.3%
477.0	470.5	-1.4%

1. Operating profit/loss

The adjusted EBITA for the first quarter of 2024 amounted to EUR 50.3 million, a decrease of 15.9% on the same period in 2023 when the figure was EUR 59.8 million. The adjusted EBITA margin over revenue in January-March 2024 was 10.7%, compared to 12.5% the previous year.

The adjusted EBITA for the period from January to March 2024 decreased in absolute terms with respect to the same period the previous year, owing mainly to:

• Ongoing business growth in local currency;
• The adjustments introduced by the new government of Argentine in December 2023 have had an adverse impact;

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PROFIT/LOSS FIRST QUARTER

• A significant increase in non-recurring expenses due to a step-up in store openings in the foreign exchange business and restructuring costs in Australia during 2023.
• The growth trend of Transformation Products;

1. Finance profit/loss

From January to March 2024, Prosegur CASH obtained a negative finance result of EUR 10.9 million compared to a negative result of EUR 24.5 million for the same period in 2023, which represents a positive comparative impact of EUR 13.6 million in the income statements compared with the previous year. The main changes in the finance profit/loss were as follows:

• The finance expenses for payment of interest in January to March 2024 were EUR 10.2 million, compared to EUR 9.6 million in the same period in 2023, accounting for an expense increase of EUR 0.6 million.
• Negative currency exchange differences in the period from January to March 2024 amounted to EUR 3.6 million, compared to the negative currency exchange differences of EUR 13.7 million in the same period in 2023, implying a positive comparative impact of EUR 10.1 million.
• The net finance income from the net monetary position amounted to EUR 2.9 million in January- March 2024 and EUR 1.1 million during the same period in 2023, which represents a positive comparative impact of EUR 4.1 million.

1. Net profit/loss

The net profit/loss for January to March 2024 totalled EUR 17.6 million, compared to EUR 14.1 million during the same period in 2023.

The effective tax rate was 46.5% in the first three months of 2024, compared to 51.5% in the first three months of 2023.

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PROFIT/LOSS FIRST QUARTER

2. Significant events and transactions

Significant events

Reduction of capital through the redemption of treasury stock

On 7 February 2024, a deed was registered in the Mercantile Registry relating to the reduction of capital through the redemption of 38,033,196 own shares of the Company, each with a par value of EUR 0.02, thus reducing the share capital by EUR 760,663.92, from EUR 30,458,933.66 to EUR 29,698,269.74. The resulting share capital is represented by 1,484,913,487 ordinary shares of a single class and series, each with a par value of EUR 0.02. Each share carries the right to one vote, so voting rights total 1,484.913,487.

The capital reduction was carried out without refund of contributions and was made against free reserves by provisioning an unavailable voluntary reserve for the same amount as the capital reduction (that is EUR 760,663.92), in accordance with article 355 c) of the Spanish Companies Act.

Said capital reduction was approved by the Ordinary Shareholders General Meeting held on 1 June 2022, under item ten of the agenda, and by the Extraordinary Shareholders General Meeting held on 7 December 2022, under item two of the agenda.

Voluntary and partial takeover bid for shares in Prosegur Compañía de Seguridad, S.A., submitted by Gubel S.L.

The voluntary and partial takeover bid filed by Gubel S.L. for a maximum of 81,754,030 shares in Prosegur Compañía de Seguridad S.A., representing 15% of its share capital, was accepted for 71,128,791 shares, representing 13.23% of the share capital of Prosegur Compañía de Seguridad S.A.

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PROFIT/LOSS FIRST QUARTER

Business combinations

No business combinations existed during the period from January to March 2024.

3. Consolidated financial information

The consolidated financial information was prepared in accordance with International Financial Reporting Standards (IFRS-EU) applicable at 31 March 2024. Such accounting standards have been applied both to financial years 2024 and 2023.

The treatment of Argentina as a hyperinflationary economy should be taken into account in order to understand the consolidated financial statements. The financial statements of the Argentine subsidiaries whose functional currency is the Argentine peso have been re-stated in terms of the current unit of measurement at the closing date of March 2024 and December 2023 before being included in the consolidated financial statements.

The main variations in the consolidated balance sheet at 31 March 2024 compared to the close of financial year 2023 are summarised as follows:

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PROFIT/LOSS FIRST QUARTER

Million of Euros

CONSOLIDATED BALANCE SHEET	12/31/2023	03/31/2024
Non current assets	1,298.7	1,357.6
Property, plant and equipment	352.4	388.1
Goodwill	440.2	453.7
Other intangible assets	243.7	248.9
Rights of use	111.2	123.4
Investments accounted for using the equity method	58.6	50.8
Non current financial assets	31.7	31.3
Other non current assets	60.8	61.4
Current assets	690.9	723.4
Inventories	22.1	26.7
Trade and other receivables	358.7	402.4
Accounts receivables with Prosegur Group	60.4	58.8
Current financial assets	0.9	4.8
Cash and cash equivalents	248.8	230.7
ASSETS	1,989.6	2,081.0
Equity	154.1	228.8
Share capital	30.5	29.7
Retained earnings and other reserves	123.7	199.1
Non-Current Liabilities	1,115.1	1,205.6
Bank borrowings and other financial liabilities	812.2	889.7
Other non-current liabilities	219.6	228.5
Non-current lease liabilities	83.3	87.4
Current Liabilities	720.4	646.6
Short term bank borrowings and other financial liabilities	226.9	147.2
Short term lease liabilities	34.9	37.3
Trade and other payables	386.7	391.9
Accounts payable with Prosegur Group	61.5	63.3
Other current liabilites	10.3	6.8
EQUITY AND LIABILITIES	1,989.6	2,081.0

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