Prosegur Compania de Seguridad

Good day and thank you for standing by. Welcome to the ProceGur Q1 2026 results presentation. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To answer your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Cristina Casado. Please go ahead.

Good afternoon and welcome to the Prosegur first quarter 2026 results presentation webcast. Before we start, I would like to remind you that this presentation has been pre-recorded and that it will be available on our corporate website. I will now hand you over to our CFO, Maite Rodríguez.

Good afternoon and thank you all for your presence. We are pleased to present a strong first quarter with our main financial and operational indicators showing year-over-year increase and enhancement. This is clearly evident in our cash generation throughout the period. A special highlight to the performance of our security business is needed. as it continues to outperform and contributing to both results and cash generation. With this good start, we are confident that we are on the right track to comply with our main objective of generating value for our shareholders. Now, with all this in mind, let's deep dive into the most significant aspects of the period. Our top line grew by 1.5% compared to the same period of last year, and as it has been the case for some time now, was fully driven by organic growth. Indeed, the latter went up to 8% without considering the negative effects impact mainly stemming the Argentinian peso and the US dollar. As per the sustainability of the metric, it can be seen that all regions grew with a special highlight in the APAC region, where cash volumes continue to increase at very healthy levels. The same is true for the USA, country where our security business is currently focused. As for profitability, EBITDA stood at 87 million euros, pretty much in line with the previous year. As we shall later see, this is entirely due to cash business, which was negatively impacted by the macroeconomic environment and country-mixed dynamics. Our security business for its part outperformed last year's results, marking a 12.7% increase in EBITDA, driven by best-in-class operational execution and a clear commitment to geographic diversification. For our alarms business, as we will see, we are strategically focused on enhancing the profitability of new customer acquisitions. As outlined at the Alarms Capital Market Day, we have shifted our growth strategy towards quality growth, prioritizing lower churn and faster payback on acquisition costs. Thanks to an efficient working capital management and keeping infrastructure topics under control, operating cash flow totals 8 million euros, compared with the negative 19 million euros that we generated last year. It's good to highlight that the 27 million euros of additional cash were generated with virtually the same EBITDA, demonstrating the strong commitment of all business units to cash generation in order to reduce debt. As always, our main premise is to continue growing but always be mindful of leverage. Not only will reduce 28 million euros in total net debt, but our leverage ratio stands at a healthy 2.4 times level relative to EBITDA. Besides, our financial debt is both well-structured in the long run and cheap. We are confident that going forward, our leverage ratio should continue to go down, considering the seasonality of our cash generation throughout the year. I would like to mention a few relevant highlights in the period. From a debt perspective, the 600 million euros cash business bond was fully paid and amortized. At the same time, we entered into a 60 million euros loan agreement with European Investment Bank to finance specific initiatives related to digitalization of our operations. With this latest transaction, our debt is refinanced for the coming years. with more than 60% at fixed rates, providing balance sheet stability and resilience against potential and forcing impacts extending from the current geopolitical environment. Finally, for your awareness, we have decided to integrate our cyber business into our security business. We believe this is a natural step as the former will help expand the latter's current product suite. Compania de Seguridad Compania de Seguridad Compania de Seguridad Compania de Seguridad Compania de Seguridad Discounting for the FX defect, almost the entire growth was organic, evidencing our strict policy when it comes to passing through inflation to prices. At the same time, volumes continue to grow, both in our most traditional businesses without exception, and most importantly, in our transformation products. Turning to geographic sales diversification, rest of the world continues to be the main growth driver. which is a natural outcome given the inclusion of both the US and other regions. As this trend continues to consolidate and we see no factors that should hinder it, it is expected to have a positive impact on the overall sustainability of the group. Latin American performance was primarily affected by the impact of currency devaluation and its effect on the geographic mix. Moving on to profitability, EBITDA reached 87 million euros, broadly in line with last year. The EBITDA margin remained stable at 6.8%. Let's now turn to our full P&L that, as it can be seen, showed a remarkable increase compared to last year. The performance all the way down to EBIT will be thoroughly explained when we discuss the performance of its business. However, as it can be seen, the drivers of the net income enhancement are both financial results and accrued taxes. As for the former, the increase is mainly explained by better FX results compared to the previous year. Going further down to accrued taxes, the astonishing close to 480 basis points reduction in the effective rate should be highlighted. The rationale behind this reduction is twofold. On the one hand, we have better results in all individual geographies, and on the other, negative results extending from hyperinflation, accounting and dividend upstreaming were significantly reduced. All the above led to a consolidated net profit of 33 million euros, achieving a 15.2% higher year over year. Let's now turn to cash generation during the period. As it can be seen, following the historical seasonality of the business, free cash flow reduced in negative 32 million euros that is 22 million euros higher with respect to the previous year. As mentioned earlier, after adjusting for volume sold, our cash generation capacity can be considered stronger than in 2025. This is evident when we take a closer look to the working capital requirements line. Indeed, compared to last year, it decreased by 23 million euros, driven primarily by our efforts to reduce BSO. Net financial debt reached 1.4 billion euros, resulting in a total net debt to EBITDA ratio of 2.4 times. It's worth highlighting that both the terms and the structure of our debt is very healthy, with an average cost at 2.9%, with a high percentage of our debt at fixed rates, providing protection against any macroeconomic uncertainty for the coming years. I would like to remark the 28 million euros reduction in net debt, achieved despite the typical first quarter seasonality, underscoring our strong commitment to deliver aging. We expect this positive trend to continue throughout 2026. That's all from me for now. I will now turn the presentation over to our Head of Investor Relations, Juan Ignacio Galliano, who will give you more detailed information on the development of the specific business areas.