RESULTS PRESENTATION. THIRD QUARTER 2019 Cash in the media - PowerPoint PPT Presentation

RESULTS PRESENTATION. THIRD QUARTER 2019

Cash in the media Consumers need a right to use cash. Amazon reinvents cash as a payment option. Each payment method has its advantages With the launch of Amazon PayCode, already consumer’s depending on the needs and available in 19 countries around the world, and preferences. Cash has several features which now also in the United States, Amazon keeps cannot be matched by electronic payment services providing its customers with the option to pay its (privacy, financial inclusion, resiliency to natural online shopping in cash. And this is because “customers love the convenience of paying in disasters, it also contributes to a more competitive cash” according to Ben Volk, Director, Payments retail payments market, etc.). Cash needs protecting at Amazon Source: The European Consumer Organization Source: Amazon LINK announces new measures for UK’s Uber customers paid more than $6 billion in access to cash. cash last year. The UK’s largest cash machine network, has In some markets in Latin America, Europe, the announced new measures to enable free access Middle East, and Africa, Uber allows consumers to to cash in every high-street. On top of that, LINK pay cash for their rides and / or meal deliveries. In has taken a step further by announcing, for the 2018, cash-paid trips accounted for nearly 13% of Uber’s global gross bookings of $49.8 billion, first time, that it will directly commission free-to- use ATMs in communities with poor access to which represented c.$6.5 billion in cash payments. ” reported Marketwatch cash Source: Link Source: Marketwatch 2

Agenda 1. Highlights of the period 2. Regional dynamics 3. Financial results 4. Conclusions

1. Main themes Highlights of the period 1 • Still negatively impacted by the currency depreciation and the application Macro of the hyperinflationary accounting in Argentina (IAS 21 & 29) vs. 9M 2018 Environment although to a lesser extend than in previous quarters 2 • Local currency growth reached 18.0% (1) in 9M 2019 Agility • EBIT margin recovery continued in euro terms 3 • 5 acquisitions completed during the first nine months of the year (3 LatAm, 1 Europe, 1 AOA) for an accumulated EV close to 70 M€ Consolidation • Divestments in South Africa (June) and France (July) already closed 4 • New Products represented 16.0% of total sales in 9M 2019 Transformation • New Products sales grew 52% in euros on the back of our Smart Cash solutions, AVOS and ATMs 5 • Free Cash Flow generation of 93 M€ (Total Net Debt EBITDA Ratio < 2.0x) Financial Discipline • S&P Rating confirmed (BBB, Outlook stable) 4 (1) Includes organic and inorganic growth

1. Agility Highlights of the period % Local Growth (1) % EBIT Margin by quarter by quarter IAS 21/29 IAS 21/29 21.1 19.6 18.7 17.0 16.5 16.3 14.2 15.0 13.5 13.1 12.9 11.9 11.3 10.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2018 2019 2018 2019 Gradual improvement in our growth and margins continued as a result of (i) the strength of our underlying business; (ii) non-recurring volumes in LatAm; (iii) the impact of the divestments undertaken in South Africa and France 5 (1) Includes organic and inorganic growth

1. Consolidation Highlights of the period  5 deals in 9M 2019 (3 LatAm, 1 Europe, 1 AOA). Accumulated EV ~70 M€  Divestments in South Africa (June) and France (July) already executed  Annual target of M&A investment for 2019 between 50M€ - 150 M€ 6

1. Transformation Highlights of the period New Products sales (1) (M€) and weight vs. Total Sales (%) +52% New Products sales reached 214 M€  214 220 35 (+52% vs. 9M 2018), contributing 200 16% of total revenues 30 180 160 141 25 140 120 20  Organic growth pace remains solid 100 16.0 80 15 60 11.5 40 10  Positive performance of SmartCash 20 solutions, AVOS and ATMs 0 5 9M 2018 9M 2019 7 (1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting)

Agenda 1. Highlights of the period 2. Regional dynamics 3. Financial results 4. Conclusions

2. LatAm Regional dynamics [ 65% of the total sales (1) in 9M 2019 vs 65% in 9M 2018] Total Sales (M€)  Organic growth acceleration versus previous quarters explained by: +11% Org: +16.2% 1.000 40 875 Inorg: +7.2% ▪ Positive contribution from all 789 30 FX (2) : (12.4)% the countries 500 20 ▪ Cost increase pass-through to 10 clients 0 0 ▪ Higher volumes, although some 9M 2018 9M 2019 of them are temporal in nature New Products Sales  Inorganic contribution in line with (M€) and Weight (%) previous quarters +71% 150 40 141  Adverse currency impact although 30 less than in 6M 2019 100 82 16.1 20 10.4 50  New Products positive momentum 10 remained and now represents 16% of 0 0 9M 2018 9M 2019 total revenues (vs. 10% in 9M 2018) 9 (1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting); (2) Includes FX and IAS 21 & 29 impact.

2. Europe Regional dynamics [ 29% of the total sales in 9M 2019 vs 30% in 9M 2018] Total Sales (M€)  Organic growth in line with previous +6% quarters. Positive trend continues Org: +5.1% 384 400 40 363 Inorg: +0.6% 300 30 FX: 0.0% 200 20 100 10 0 0 9M 2018 9M 2019  Lower inorganic growth due to the sale of France New Products Sales (M€) and Weight (%) +28% 80 40 69 60 30 54 17.9 40 20  New Products continue gaining 14.8 20 10 weight within the sales mix (c.18% 0 0 in 9M 2019 vs. 15% a year ago) 9M 2018 9M 2019 10

2. AOA Regional dynamics [ 6% of the total sales in 9M 2019 vs 5% in 9M 2018] Total Sales (M€)  Regarding the organic growth of +20% the region: Org: (5.6)% 78 80 40 ▪ Australia remains in line with Inorg: +27.1% 65 60 30 previous quarters FX: (1.6)% ▪ 40 20 Partially offset by the positive performance of the Philippines 20 10 0 0 9M 2018 9M 2019 New Products Sales (M€) and Weight (%) -14% 6 40 5 4 30 4 20  New products consolidating the 2 7.4 10 change of trend, posting growth vs. 5.3 same quarter in 2018 0 0 9M 2018 9M 2019 11

Agenda 1. Highlights of the period 2. Regional dynamics 3. Financial results 4. Conclusions

3. Profit and Loss Account (1) Financial results 9M 2018 9M 2019 % VAR Million Euros 1,337 Sales 1,217 +9.8% 288 EBITDA 250 +15.3% Margin 20.5% 21.5% (62) Depreciation (40) +55.8% Total Sales (M€) 226 EBITA 210 +7.6% Margin 17.3% 16.9% +10% (13) Amortization of intangibles (12) +13.9% 6% (8%) 1,337 213 EBIT 198 +7.3% 12% 1,217 Margin 16.3% 15.9% (32) Financial result 14 -333% 181 EBT 212 -14.6% Margin 17.4% 13.5% (55) Taxes (72) -24.0% Tax rate 33.9% 30.1% (2) Net Profit from continuing 9M Org. Inorg. FX 9M 140 126 -9.8% operations 2018 2019 Margin 11.5% 9.5% Net Consolidated Profit 127 140 -9.5% Margin 11.5% 9.5% 13 (1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting). In addition, 2019 figures are reported according to IAS 16 (leasings), in force since 1Q 2019; (2) Includes FX and IAS 21 & 29 impact.

3. Cash Flow (1) Financial results 9M 2018 9M 2019 Million Euros 288 EBITDA 250  SmartCash capex increased, almost Provisions and other items 41 1 doubling the investments made in 9M 2018 (63) Income tax (87) (70) Acquisition of PP&E (63)  Working capital outflows derived from (62) Changes in working capital (21) local growth and collection delays in Free Cash Flow 120 93 Peru, Chile and Germany % Conversion (2) 75% 76% Interest payments (7) (9) Payments for acquisitions of  The conversión ratio slightly improved 2 (37) subsidiaries to 76% in the period (88) Dividend payment (66) - Restructuring operations 18 - Others -  M&A payments were offset by the South (2) Total Net Cash Flow 27 African and French divestments Net financial position (BoP) (424) (491)  Fourth instalment of dividend disbursed (2) Net increase / (decrease) in cash 27 (25% vs. 20% in 2018) Exchange rate (43) (18) (511) Net financial position (EoP) (440) 14 (1) 2018 and 2019 figures according to IAS 21 & 29 (hyperinflation accounting); (2) Conversion ratio: (EBITDA - Capex) / EBITDA