26/02/2015

Organic growth increased more than 10% at a constant exchange rate

Madrid, 26th February 2015. Prosegur generated a consolidated net profit of €159 million during 2014, equal to a 1.8% increase over the previous year. The EBIT -earnings before interest and taxes-, which comes to €307 million, grew by close to 30% at a constant exchange rate.

With regard to the Company turnover, during this period Prosegur obtained revenues of €3,783 million, an increase of 2.4% with respect to 2013. Furthermore, in spite of a macroeconomic environment characterised by the depreciation of Latin American currencies and the economic decline in Brazil, during this year organic growth increased by more than 10% at a constant exchange rate.

It should be noted that sales in the regions of Europe and Asia-Pacific increased by close to 10% over the previous year, totalling €1,581 million. This increase was driven mainly to the strong performance of the business in Spain -in line with the recovery of the country's economy- tied to the good results in Germany, that increased by more than 32%. Meanwhile, in the Asia-Pacific market, Prosegur has continued to strengthen its activity with an organic growth over than 20%.

On the other hand, in Latin America the turnover reached €2,201 million, which meant a decline of 2.4%, due to the impact of the devaluation of the main currencies in the region. However, sales in this geographic location have grown at a rate of over 16% at a constant exchange rate. In terms of organic growth by country, Prosegur in Brazil showed an improvement in its turnover of more than 5% and the area covering Argentina, Paraguay and Uruguay also increased its sales by close to 38%. Colombia, with an increase of more than 14%, has also been one of the markets with a good performance.

Overall, the progress recorded by Prosegur during the 2014 financial year is also shown in the positive evolution of the earnings, as well as in the strengthening of the Company's activity in those countries in which it is present.

Commitment of cash generation and improvement of debt structure
Prosegur, that has a 'BBB stable' investment grade credit rating from the Standard & Poor's (S&P) rating agency, formalised a syndicated credit transaction last June in an amount of €400 million.

To this regard, the Company has been able to reduce its average cost of financing -which includes currencies with interest rates superior to that of the Euro- to 3.5%. On the other hand, net debt amounts to €611 million. Furthermore, Prosegur maintains the strength in cash generation and for the upcoming year will continue the optimisation of the debt structure.

Results by business line
With a strategy that combines innovation with the most qualified professionals, Prosegur advances toward a new concept of security, by means of solutions that meet the current and future needs of its customers. Therefore, the Company currently has three business lines, Integrated Security Solutions (SIS), which combines the services of Manned Guarding and Technology, Cash in Transit and Alarms.

Thus, during this year and in the SIS business, Prosegur obtained a turnover of €1,937 million, in line with the trend recorded in the previous period. By regions, in Europe and Asia-Pacific, revenues from this activity have grown 1.2% to a quantity of €966 million. In Latin America, the Company invoiced €970 million.

On the other hand, Cash in Transit obtained sales of €1,664 million, accounting for an increase of 5% over last year. In Europe and Asia-Pacific, sales increased by more than 33 per cent, up to €515 million, and in Latin America sales reached €1,149 million. Furthermore the Company, that manages more than 80,000 ATM´s worldwide and has a fleet of 5,200 armoured vehicles, opened new logistics bases in countries such as Germany, Brazil, Peru and Portugal in 2014.

With respect to the Alarm business, in which Prosegur has close to 400,000 customer base in all of the markets in which it undertakes this activity, the Company obtained revenues of some €181 million. In Europe and Asia-Pacific, Prosegur invoiced €100 million, an increase of close to 3%, while in Latin America revenues reached €81 million. Lastly, the number of contracts has increased by 20% with respect to 2013.

New cybersecurity services
The Company has launched a new cybersecurity division to complement its line of services and provide a comprehensive offer to companies and organisations that make it possible to manage risks and protect the confidentiality of their information on the web.

For this purpose, Prosegur has created a global operations centre from where it mainly develops three different services relating to information security; logical security aimed at protecting the vulnerability of IT systems; digital surveillance, that offers a system for the analysis of the information published daily on Internet and lastly, cyberintelligence solutions that enable a more in-depth analysis of criminal activity on the web.

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