Prosegur Compania de Seguridad

Good day and thank you for standing by. Welcome to the Prosegur Q2 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 automatic message advising your hand is raised. To answer your question, please press star 1 1 again. Please re-advise that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Cristina Casado, investor relations director. Please go ahead.

Good afternoon and welcome to the Prosegur first half 2026 result 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 Labriegue.

Good afternoon, everyone, and thank you for joining us today. We are pleased to present Prosegur results for the first half of 2026. As highlighted throughout this presentation, the group sustained a solid growth trajectory, with revenues benefiting from a strong organic performance and a supportive foreign exchange environment. net consolidated profit increased by nearly 6% year-on-year, reflecting both the resilience of our business despite macroeconomic headwinds and the strong operational execution across our business lines. These results reinforce our confidence in the strategy we are executing and in our ability to continue delivering sustainable value for our shareholders. Looking ahead, we expect the second half of the year to be characterized by a strong cash flow generation and continued progress in reducing leverage, further strengthening the group's financial position. Moving now to the key highlights of the period, I would like to underline four main messages, growth, profitability, cash flow, and recent business development. First, on growth, Revenue reached 2.6 billion euros, increasing by 5.2% year-on-year. This performance was supported by a strong organic growth above 7%, with sales growing across all regions. A more favourable ethics environment compared with previous periods has made the resilience and quality of our underlying businesses more visible. Looking ahead, we expect this positive FX trend to continue throughout the second half of the year and potentially become even more supportive. Second, on profitability, EBITDA stood at 167 million euros, slightly down by 1.8% year on year. Within this evolution, Cash delivered an EBITDA improvement of 1.3% and security continued to show a solid performance increase not only year-on-year, but also quarter-on-quarter. Alarms benefited from the stronger contribution of MPA, while also reflecting the impact of the ongoing optimization of its customer portfolio. in line with a strategy focused on building a higher-quality customer base that we introduced during our Q1 2026 results presentation and the Alarm's Capital Market Day. Although these represent a decline compared to last year, the key message is that total net cash flow improved supported by several factors, including efficient tax management and strict capex control. Working capital was temporarily impacted by strong business volumes, particularly in Security USA, where organic growth was close to 30%. This also had a temporary effect of leverage. However, the group remains focused on its gradual deleveraging strategy. Finally, in terms of recent development, Alarm, as Cristina will explain in more detail later, continues to strengthen its commercial strategy focused on building a higher quality customer base. At the same time, our state is expanding its service ecosystem, including the rollout of insurance solutions in Latin America. In addition, this period is especially relevant for Prosegur as we celebrate the group's 15th anniversary, 15 years being pro. Let me now provide some additional detail on revenue and profitability performance during the first half of the year. Starting with sales, as mentioned earlier, total revenues increased by 5.2% year on year, with a strong organic growth of 7.3% and a significant better foreign exchange environment. Importantly, growth was broad-based across the portfolio and across geographies. Looking at the regional breakdown, Europe increased by 4.1%, Latin America by 4%, and rest of the world showed the strongest performance growing by 13.2%, highlighting the strength and diversification of our business model. Moving to profitability, the EBITDA margin stood at 6.4% versus 6.9% in the prior year period. The decline was mainly driven by a business mixed effect. as security, our fastest growing business, operates with lower margins than the group average, as well as by the ongoing optimization of the alarms portfolio and the one-off costs related to the Prosegur's 15th anniversary celebrations. Looking at the individual businesses, cash continued to show resilience with its EBITDA margin in the second quarter, improved by more than 30 basis points year-on-year despite a challenging market environment. Security remained the standout performer within the group, with particularly strong momentum in the United States. This confirms the success of our strategy, focused on profitable growth and operational excellence. In ARAMS, revenues increased by 12% year-on-year. The service margin was broadly stable, with a limited decline of 0.7%. Compania de Seguridad Let me now walk you through the main highlights of our income statement for the first half of 2026. As discussed in the previous slide, revenues increased by 5.2% year-on-year, with a strong organic performance across the group. At the EBDA level, profitability remained resilient, demonstrating the strength of our operational model despite a challenging macroeconomic environment in some markets. EBITDA stood at 167 million euros compared to 170 million euros in the first half of last year. As a result, the EBITDA margin was 6.4% versus 6.9% in the prior year period. This evolution reflects the different performance dynamic across our businesses. Below EBITDA, financial expenses also remained under control at 37 million euros, Reflecting our disciplined financial management despite the higher interest rate environment. One of the most relevant messages is the continued improvement in our tax efficiency. Our effective tax rate decreased by 368 basis points year on year, from 45.5% to 41.8%. This improvement is the result of a solid tax strategy supported by a better earnings mix across geographies and ongoing optimization initiatives. Thanks to this improvement in tax efficiency, together with a strict control of financial expenses, net income increased to 57 million euros. This represents growth of 5.5% at the consolidated net income level, reaching 57 million euros. In summary, while operating profitability remained broadly stable, the combination of a strong cost discipline, improved tax management, and financial control allowed us to further increase net profit and continue creating value for shareholders. Let me now elaborate on cash flow generation and the evolution of our net debt position during the first half of the year. Starting with the operational cash flow, the year-on-year deterioration is largely explained by the temporary impact of working capital, affected by the strong increase in business volumes, particularly in Security USA. While this had a short-term impact on cash generation, it reflects the strong commercial momentum of the business and should therefore be viewed as a consequence of growth rather than a deterioration in operational quality. Furthermore, the line item provisions and other non-cash items was affected by the stronger performance of equity-accounted investments, mainly Australia and NTA. As these entities are accounted for under the equity method rather than fully consolidated, their improved earnings require an accounting adjustment, while their cash generation is not reflected in the group's consolidated net debt. Cash tax payments were lower during the period, reflecting the benefits of our increasingly diversified geographic mix. We are generating a greater proportion of earnings in countries with lower effective tax rates, while also making use of tax laws carried forward from prior years, as profitability has improved. At the same time, interest payments remained stable despite the interest rate environment, in terms of CAPEX will remain focused on operational efficiency. Including acquisitions, dividend payments and other cash movements, total net cash flow was negative 58 million euros, showing an improvement compared with the negative 72 million euros recorded in the first half of 2025. When it comes to net debt, the increase was mainly driven by the temporary working capital effect that I mentioned earlier. As a result, our net debt to EBITDA ratio stood at 2.5 times. While leverage increased slightly during the period, we viewed this as a temporary effect and remained fully committed to our gradual leveraging strategy with a clear improvement expected by year end. Finally, I would like to highlight the strength of our debt profile. The average cost of debt remains low at just 3.1%. 64% of our debt is fixed rate and the average maturity stands at a comfortable 3.7 years. These metrics underpin a solid financial position and provide us with the flexibility to continue investing in growth while maintaining our commitment to reducing leverage over time. That's all from me for now. I will now hand over to Cristina Casado, our Investor Relations Director, who will provide a more detailed overview of the performance and key developments across our business units.