PR PROSEGU OSEGUR Q1 202 Q1 2020 0 Resu esults lts 26 Mayo 2020 Investors Relations Department
CO COVID19 VID19 IMP IMPACT CT & & Full collaboration with Government and Authorities RE RESP SPONSE ONSE Assignment of our logistical capacity • Support for extraordinary healthcare operations • Temporary asymmetrical effects on businesses that are hard to project in the future Loss of volumes in Security and Cash from close of non-food • shops, banking offices and lower business activity in general Alarms: Commercial slowdown due to confinement • Increase in Security and Cash services in Food Retail in • Europe Increased ATM services in Cash • New activities in monitoring and technology • Absolute focus on cash protection and spending containment measures 2
OF THE PERIOD Q1 20 REL RELEV EVANT ANT INDICA INDICATORS ORS REVENUES PROFITABILITY CASH FLOW BALANCE Total sales of 994 million EBITA 53 million Implementation of strong Protecting Group Liquidity • • • • cash consumption Positive local currency Profitability affected by Limited leveraging level • • • containment measures growth of 9.4% Covid19 and additional with long-term maturities negative FX Dividend reinvestment plan • Matching Q1 2019 despite Efficient natural hedging • • with treasury stock shares Covid19 effect and By isolating these two policies to minimize • increased adverse FX effects, EBITA would have Stable operating cash flow currency risk • shown a positive evolution 3
P&L Consolidated Results % 1Q 2019 1Q 2020 (2) Variation (€ millions) +0.1% Sales 994 993 0.1% +3.0% EBITDA 116 98 -15.0% -9.4% Margin 11.7% 9.9% +6.4% 993 994 Depreciation (43) (45) EBITA 53 73 -27.0% Margin 7.4% 5.4% Amortization of intangibles (6) (7) EBIT 67 46 -31.1% Margin 6.8% 4.7% 1Q 2919 Org Inorg FX (1) 1Q 2020 (14) (12) Financial result Profit before tax 53 34 -36.1% • Organic growth above 6% Margin 5.4% 3.4% Tax (23) (15) • Reinforced by M&A in Ecuador, Brazil, Colombia and Spain Tax rate 43.2% 44.7% Net Profit 30 19 -37.7% • EBITA penalised by Covid19 and FX 9 8 Minority Interest impact Consolidated Net Profit 22 11 -47.8% Earnings per share 0.02 0.04 (Euros per share) 4 (1) Includes exchange rate effect and IAS 21&29 (2) Excluding extraordinary results in the period, mainly resulting from the exchange of participations between Prosegur and Telefónica
Local Currency Growth (1) % % Growth in Euros CONSOLID CO NSOLIDATE TED REVENUES D REVENUES 1Q 2019 +9.0% +10.9% +0.1% 1Q 2020 BY BUSINES BY USINESS S & REGIO & REGION +4.6% -3.9% Revenues 513 490 by • Cash is the business with volumes most affected by -9.1% combination of Covid19 effects and increased 415 Business 432 adverse FX 68 62 • Security reflects the effect of M&A and Cash Security (2) Alarms extraordinary volumes in retail, but also shows additional negative Covid19 effect • Alarms reflects the accounting deconsolidation of Spanish connections -0.7% +13.3% +47.4% • Geographically, the biggest impact of Covid19 is in -5.2% Spain , cushioned by better situation in Germany and Cash/Security volume mix effect -0.7% Revenues • Ibero-America reduces volume due to increased negative FX by +47.4% 503 477 427 423 Region • R.o.W. grows strongly driven by US, Philippines and Indonesia 93 93 63 63 Europe Ibero- RoW America 5 Amounts in Millions of Euros - (1) Includes organic and acquisition growth - (2) Excludes CyberSecurity sales
CONSOLID CO NSOLIDATE TED P D PROFIT OFITAB ABILITY ILITY & CASH & CA SH FL FLOW GENERA W GENERATION TION CASH FLOW GENERATION PROFITABILITY -45.2% +19.0% 40 -27.0% 7.4% 22 37.9% 5.4% 73 53 25.6% 1Q 2019 1Q 2020 1Q 2019 1Q 2020 (1) EBITA Margin % Cash/EBITDA Loses deriving from COVID19 effect Operating Cash Flow Growth ex-Covid19 y FX % Loses deriving from negative FX Reported growth % Recurrent EBITA(1) Cash flow generation has been Profitability deteriorates mainly by affected by the additional negative FX Covid19 and FX effect since the beginning of the year 6 Amounts in millions of Euros (1) Normalizing the impact of IAS16
Res esults ults by by Bus Busines iness s Line Line CASH – SEGURITY - ALARMS
PROSEGU PR OSEGUR R CASH CASH REVENUES NEW PRODUCTS PROFITABILITY +200 pb -20.0% -3.9% 66 18.2% 16.2% 53 +1.7% +7.3% -12.9% 432 11.8% 415 8.7% 15.2% 12.7% 6.4% 1Q 2019 Org Inorg FX (1) 1Q 2020 FY 2016 FY 2017 FY 2018 FY 2019 1Q 2020 1Q 2019 1Q 2020 Margin EBITA EBITA • 9% growth in local currency • New products reach 18.2% of total sales in Profitability deterioration explained by: • 1Q 2020 • Less volume and amount transported • Initiated operations in Ecuador and • The current situation increases customer divestment in Mexico • Currency impact incentives to outsource business processes • Negative FX increased over the period • New services grow, and able to continue Temporary dilutive effect of the new M&A • doing so in the future (potential synergies not yet captured) 8 Amounts in € Millions - (1) Includes exchange rate effect and IAS 21&29
PR PROSEGU OSEGUR R SEC SECURITY URITY REVENUES (2) NEW PRODUCTS PROFITABILITY (3) +100 pb -33.3% +4.6% 12 12 29% 28% 23% +6.3% -6.3% 2.5% 8 8 20% 513 17% +4.6% 1.6% Margin EBITA EBITA 490 1Q 2019 Org Inorg FX (1) 1Q 2020 FY 2016 FY 2017 FY 2018 FY 2019 1Q 2020 1Q 2019 1Q 2020 • 11% growth in local currency and close to 5% in Euro • Continuing to increase penetration of Integrated • Profitability affected by: terms Security Solutions to 29% of the customer portfolio • Loss of sporadic services with better margins • Additional services in food retail and healthcare (sporting events) • Reinforced investment in this line of products via support M&A of technology company in Spain • Mix effect by lower weight of Spain in the overall • Notable drop in sports events services volumes • Higher volumes in Spain, Colombia and Brazil • Strong 6.3% U.S. -boosted inorganic growth • Adverse FX, mainly in Brazil 9 Amounts in € Millions - (1) Includes Currency Effect and IAS 21&29 - (2) Excludes Cybersecurity - (3) Excludes Overhead Costs and Cybersecurity
PROSEGU PR OSEGUR R ALA ALARMS RMS TOTAL INSTALLED BASE REVENUES ARPU -9.1% 579 578 38 38 547 36 36 499 33 Ø 36 +12.5% -12.4% 424 68 -9.2% 62 368 2016 2017 2018 2019 1Q 2020 1Q 2019 Org Inorg FX (1) 1Q 2020 2016 2017 2018 2019 1Q 2020 Slight deterioration of ARPU due to Spain • • Total Contract Base captures the Organic growth greater than 12% • extraction and increased effect FX deconsolidation of Spain's alarms, now operated by Movistar Prosegur Alarms Volume reduction by deconsolidation of • • Negative Covid19 confinement effect on Churn stays stable with no noticeable • Spain and negative FX in Ibero-America new additions to base in all countries. negative effects 10 Amounts in € Millions - BTC (Total Contract Base) in thousands of connections- ARPU in € per month - (1) Includes exchange rate effect and IAS 21&29
Fina Financ ncial ial Inf Infor orma mation tion CASH FLOW FINANCIAL POSITION BALANCE SHEET
CONSOLID CONSO LIDATED TED CAS CASH H FL FLOW Operating Cash Flow by quarters (accumulated) 1Q 2019 1Q 2020 (1) Amounts in € millions EBITDA 116 98 351 2017 343 2018 330 Provisions and other non-cash items 18 26 2019 Tax on profit (ordinary) (31) (18) 2020 Changes in working capital (48) (68) 184 Interests payments (15) (16) 161 98 159 Operating Cash Flow 40 22 81 Acquisition of property, plant & equipment (42) (40) 40 82 24 22 6 Payments for acquisitions of subsidiaries (99) (35) Q1 6M 9M FY Dividend payments (27) (25) _ Treasury stock (48) Q1 Operating Cash Flow Others (21) (47) remains within the Group’s historical parameters Cash flow form investing / financing (189) (195) Total net cash flow (149) (173) • Impact on operating cash flow explained by: Initial net financial debt (425) (649) EBITDA reduction • Net increase / (decrease) in cash (149) (173) Working Capital affected by Digital • Exchange rate (7) (17) Transformation Financial Net Debt (2) (581) (839) Alliance with Telefónica of non-cash effect • 12 (1) Excluding extraordinary results of the exercise, mainly resulting from the exchange of participations between Prosegur and Telefónica (2) Excludes IAS 16 related debt
FIN FINANCIAL ANCIAL POSITION POSITION 1.8x 1.0x Increase of EUR 190 million (1) vs. • December 2019 mainly deriving from: 1.44% 1.41% 1.38% 1.36% 1.23% • inorganic growth operations 146 • Treasury shares buyback program 116 109 95 78 Average cost of corporate debt: • 839 649 21 basis point reduction compared to 594 603 581 the same period for the 2019 financial year ( 1.23% vs. 1.44%) 133 132 132 127 120 -3 -15 -91 -102 -112 Mar. 2019 Jun. 2019 Sep. 2019 Dic. 2019 Mar. 2020 Average Cost of Debt Deferred Payments Net Financial Debt IAS16 Debt Treasury Sotck (2) 13 (1) Excludes IAS 16 - (2 ) Treasury stock of Prosegur and Prosegur Cash at closing market price of the period - (3) Includes IAS 16 debt and excludes extraordinary effects in EBITDA
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