Prosegur Cash Unsp/Adr

Thank you for standing by. Welcome to the ProSegur Cash full year 2025 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 withdraw 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, Miguel Vandrez, Head of IR. Please go ahead.

Good morning to everyone and thank you for joining today's call. I'd like to welcome you to our 2025 Q4 and so full year results presentation that will be presented by José Antonio La Santa, our CEO, Javier Herrera, our CFO, and myself. The presentation shall take around 30 minutes in which we will share the most relevant events that have taken place in the period for our business as well as our performance. We'll comment on our key financials, our geographical performance and our transformation effort as well as our sustainability initiatives and we'll end with key conclusions. After we will open a Q&A session. Should we not get to respond to everything in today's session, we'll get back on any open topics on an individual basis. I want to again thank you all for your attendance. And as a reminder, everyone in this presentation has been pre-recorded and is available via webcast on our corporate webpage that you can find at www.possiblecash.com. But before I let the floor to José Antonio, I'd like to share some news regarding cash that have lately appeared in the media. They cover interesting topics such as the importance of cash for lower-income families in the UK, the stance towards cash of North Americans, how often cash is used in Colombia, or the resilience of cash payments in the Eurozone. There are all cases that show the relevance of cash in different geographies and for different purposes, being privacy, inclusion, or budgeting or expense control. In the first news, we can read from the BBC that the UK government will grant cash payments to people that happen to be in financial need. This new funding scheme will provide emergency funds for low-income individuals across England. This highlights how important cash is for all segments of society, especially for those that are most vulnerable. To reach them effectively and to allow them to budget their expenses accordingly, no other payment mean is as effective and as inclusive as cash is. In the second years, we crossed continent towards the U.S. We read from MoneyWise that 84% of Americans oppose having a cash-dressed country, citing privacy and spending control as key reasons for their positioning. Once again, in different places around the world, citizens are rising to defend their privacy and their right to control their personal spending. 84% is more than a relevant amount as to take into consideration when regulators are working on warranting basic economic freedom for which cash, its acceptance, and its availability are crucial. Next, moving down to Colombia, we can read from the Diario ADN that this country stands out amongst cash users, since 7 out of 10 daily payments are made with physical money. Here, we can see that in Colombia, consumers stand behind their payment choice, backing cash as their most preferred option. When doing this, they show with their example the relevance of cash for Latin American economies and the preference citizens have for it. Lastly, and coming back to Europe, we can read from Euronews that Europeans pay for more than half of their purchases in cash. In 14 of the 20 countries in the Eurozone, cash is the most widely accepted method of payment, accounting for between 45% and 55% of all transactions. Again, here we can see that because of the many positive attributes cash has, it is the preferred payment mean in over 70% of Eurozone countries. All the above are a reflection of the many events and news that take place in the world regarding cash that underscore its unique attributes and the endorsement it gets from consumers and authorities alike. We are proud to assure that the availability of cash in society continues to run smooth and effectively in close collaboration with other relevant stakeholders, such as financial institutions, retailers, or regulators. After this news update, I will share today's agenda. Firstly, José Antonio will review the period's highlights. Second, Javier will share with us the key financials for the year, after which José Antonio will take the floor again to reflect on our transformation initiatives, And then I'll share key developments per region. Finally, José Antonio will update us on the latest sustainability developments before sharing key conclusions and open the Q&A session. This being said, José Antonio, the floor is yours.

Thank you, Miguel, for sharing so interesting news on the world of cash. Good morning to everyone and thank you for attending. 2025 has been a challenging year for our company, in which despite an unfavorable exchange rate environment in Argentina, a key market for us, Having taken decisive steps towards its macro-normalization, we have managed to maintain our relative operating margins and improve our bottom line in relative and absolute terms, based on our determined transformation and a sequential improvement in Europe and a strong performance in Asia. All of this demonstrates our business model resilience. Our top line has shown organic growth of over 5%, which has been tainted by an 11.1% currency impact that accelerated as the year progressed. We must remember that 70% of our revenue is not in euros. and is hence affected both by the evolution of the US dollar versus the euro and by local currencies fluctuations versus the US dollar. Combining both elements, sales declined by 4.9%. Despite the above, We have been able to maintain a 12% EBITDA margin. I would like to here highlight that the non-recurring efficiency program we have carried out since Q2 to improve our operations and in which we have invested more than 15 million euros has been finalized and offset by positive extraordinary items. To end the year, our EBITDA margin has improved in Q4 by 30 basis points. on a quarter-on-quarter basis, reaching 12.5% on sales. Net profit has increased by 3.3% and 30 basis points versus 2024 to 94 million, showing the improved performance of the bottom part of our P&L. Regarding transformation, we continue to advance at a very strong pace, Sales for these solutions now account for 35.2% of total revenue, and the penetration has increased by 300 basis points year on year. Of particular relevance has been the performance of our cash-to-day solutions that have behaved very well in our geographies. In terms of cash flow, our free cash flow reached 100%. 8 million on the back of discipline capex control as well as in strict working capital management. With this, we have been able to reduce our total net debt by 36 million year on year, which is a clear proof of our commitment to debt reduction. Lastly, I want to share that we have effectively repaid the 600 million bond we had outstanding and that our balance sheet is strong, flexible and well-funded on to 2030. As well, our board has proposed a 62.5 million dividend for the year 2025 to be paid in 2026, which implies maintaining the same dividend per share as the prior year. Lastly, it's important for us to highlight that Standard & Poor's has included us in the Demanding Global Sustainability Yearbook for 2026, which recognises our constant effort to have a sustainable company. With this, I'd like to hand over to Javier so he can share with us our key financials.