Prosegur Cash Unsp/Adr

Good day and thank you for standing by. Welcome to the Prosegur Cash Q3 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. If you join using device audio, click the raise hand button on your screen. To answer your question, please press Star 1 again or click the lower hand button. Please, the advice at today's conference is being recorded. I would now like to hand the conference over to your speaker today, Miguel Vandrez, Investor Relations Officer. Please, go ahead.

Miguel Vandrez Good morning to everyone, and thank you for joining today's 2026 First 9 Months Resolve Call that will be presented by our CFO, Javier Hergueta, and myself. The presentation will take approximately 20 minutes. In it, we'll go over the most relevant developments for our business during the period, as well as the key elements of our financial performance. Javier will review the period's highlights, the profits and loss account, our cash flow and deficit evolution, as well as our transformation progress. After, I'll talk with the main developments per region, and finally, Javier will share main conclusions before opening the Q&A session. Should we not get to respond to everything in this meeting, Our IR team will follow up on an individual basis. I want to again thank you all for your attendance and remind everyone that this presentation has been pre-recorded and is available via webcast on our corporate webpage, which you can find at www.procedurecash.com. Before handing over to Javier to share our financials, I'd like to provide some context regarding the current landscape for cash. Consistently, this quarter's news show cash's high relevance across all actors In the economic sphere, these being consumers, retailers or legislators. This we can see happens in all geographies around the world and for different reasons, ranging from assuring the protection of cash for its inclusiveness to the relevance it's getting due to the increasing visibility the hidden costs of digital payments are achieving. In the first news from the financial teams, we can read how cash is gaining traction in India. as fees are being introduced on digital payments, causing prices to rise. This follows what we already shared in our last quarter regarding UPI. When digital payments stop being free, their cost ends up being passed on directly to consumers, and cash regains its role as the efficient and neutral alternative. This is a fact that has taken place again and makes a showing cash infrastructure at strong usage levels Fundamental to Warranty Alternative, Efficient, and Resilient Payment Means. Second, coming from the United States and published by Money.com, a new law in Maryland makes it the tenth state to require businesses to accept cash payments. This is one more step in a clear legislative trend aimed at protecting consumers' freedom of choice and the financial inclusion of those who rely on cash in their daily lives. It is another example of the trend of growing concern among citizens and their legislative powers to warranty and protect the cash system. Such a debate taking place all over the world will only increase. Legislators are and should assure the promotion and protection of the only mean of public money that has the unique characteristics of resilience, efficiency, privacy, and inclusiveness borne by cash. Third, in Argentina, as reported by La Opinión, cash is recovering, with more and more businesses offering discounts to those who pay in cash due to the high costs they face when payments are made digitally. It is a clear example of how merchants recognize cash as the most efficient means of payment, and how card and digital fees are ultimately borne by all consumers. It is as well a sign that by promoting cash, they work on avoiding the independent and digital payment systems that without alternatives will result in having absolute pricing power. Lastly, in Europe, we can read from Europa Press that 22% of Europeans demand that cash payments be warranted during the negotiation of the legal tender in the European Union. This confirms the strong public support behind the legal tender regulation, which aims to assure proper distribution and compulsory acceptance of cash across the Union. It is particularly important that this legal tender regulation ensures maximum protection to cash, eliminating exclusions to its compulsory acceptance by all merchants. This will strengthen it against other payment means and will provide so that it can be always used by citizens in a free manner. These news are, as you can see, examples of how different aspects of cash are very present in the public debate for different reasons unique to cash. With these alike, now, Thank you Miguel.

Good morning to everyone and thank you as well for attending. I would like to start by sharing some thoughts on the macro environment. In a raising oil price environment due to the conflict in the Middle East, we can see how inflationary tensions are building in different sectors of the economy. This is happening as the increased oil prices put pressure on supply chains and transportation costs, mainly through diesel hikes that are eventually passed over to consumers. It is naturally forcing interest rates to be increased in an attempt to contain the mentioned inflation. Altogether, an effect on consumption is patent to a lesser or larger extent depending on the service and geography. Within these are financials, show the resilience of our business model and its capacity to generate cash in adverse and uncertain environments such as the one we are in. Despite that, we continue to deliver organic growth in such an environment. I would specifically mention again Argentina that continues to forego extreme macro adjustments that are having an even more significant effect on consumption. The first nine months of 2026 show a clear acceleration of growth in our top line in Euro terms and a solid cash generation. The change in trend we anticipated in the second quarter regarding the positive impact of currency's evolution has consolidated in the third quarter. Sales reached 1,510 million euros, growing by 1.4% in euro terms in these nine months, with a strong acceleration in the third quarter standalone, where the top line grew by 5.3% year-on-year with foreign exchange as just mentioned contributing positively for the second quarter in a row and at a higher rate than in Q2. At margin level, EBITDA improved by 1.2% year-on-year with margin over sales in line with the previous year while net income grew by 2.1%. Transformation continues to contribute strongly to our growth. Transformation Products reached 36.2% of sales and excluding the ABOS divestment, they accelerated their growth to 8.3%. The share of total sales hence improved by 110 basis points from a reported basis and by an even more remarkable 180 basis points when we isolate the ABOS sale. Turning to Cash Generation, Free cash flow amounted to 83 million euros, 10% higher than in the first nine months of 2025, clearly above EBITDA growth. Committed to financial discipline, we have been able to reduce our total LTM net debt by 53 million euros and our leverage ratio reduced 2.2 times, 0.1 times lower than in the same period of 2025. Finally, I would highlight two additional milestones. S&P improved the outlook of our rating, which now stands at triple D with a stable outlook, clearly providing a relevant and objective third-party endorsement to our conservative financial management. This being very important always, it's especially more now in order to optimize financing costs in the above described raising interest rates environment. And plus, ETI Finance upgraded our ESG rating, recognizing the progress of our sustainability agenda. With this overview, Let me now move on to the financials. Looking first at the income statement, sales reached 1,510 million euros in the first nine months of the year, a 1.4% increase versus 2025. As shown on the right-hand side of the page, organic growth was positive at 2.6%, while inorganic had a minus 1.3% impact mainly due to the ABOS divestment, and foreign exchange contributed a positive 0.2%. With all this, it is important to underline the changing trend in Euro growth. After the improvement already shown in the second quarter, the third quarter standalone accelerated with sales rising by 5.3% in reported terms. EBITDA amounted to 254 million euros growing 1.2% year on year with an EBITDA margin of 16.8% of sales. After depreciation of 94 million euros, EBITDA reached €160 million down by 2.4% and a relative margin of 10.6%. Amortization of intangibles was stable at €60 million and financial result totaled €27 million, slightly better than last year, with which EBIT totaled €117 million, 7.8% of sales. Taxes reached 49 million euros, implying an improved tax rate of 41.9%, 260 basis points better when compared with 44.5% in the first nine months of 2025, and consistent with the decrease we have been predicting. This reflects both the impact of tax efficiency actions as well as the evolution of our country mix. With all this, Net income reached 68 million euros, increasing 2.1% year on year, while consolidated net income reached 65 million euros, up by 0.7%. Lastly, earnings per share increased by 1.5% to 4.39 euro cents. Overall, the P&L shows a positive trend in sales and net income, with a clear acceleration in the third quarter and the above-mentioned positive currency contribution. Moving now to cash flow and net debt, We have increased free cash flow by 10%, well above the 1.2% rise in EBITDA, while increasing CAPEX and reconfirming our focus on disciplined financial management, substantially improving our total net cash flow by 48 million euros. By line, with an EBITDA of 254 million euros, provisions and other items deducted 43 million euros, while income tax detracted 48 million euros, 19 million euros less than in 2025. CAPEX, reached €54 million, increasing our investment pace that includes higher customer-related capex to support commercial opportunities, and working capital consumption was €26 million, €11 million lower than last year despite the organic growth of the period and positive €4 million if considering the standalone quarter. As a result, free cash flow amounted to €83 million, of which in the third quarter standalone we generated €54 million. After interest payments of 19 million euros, positive M&A inflows of 9 million euros, dividend and treasury stock payments of 2 million euros, and other items of 6 million euros, total net cash flow was positive by 66 million euros versus 18 million euros in 2025. Our net financial position lowered from 711 million euros at the beginning of the year to 641 million euros at the end of September. Foreign exchange also had a positive 5 million euro effect in the period. including IFRS 16 debt, deferred payments, and treasury stock, total net debt was reduced to 784 million euros, that is 53 million euros lower than one year ago, and 45 million euros lower than at the end of June. With this, our leverage ratio reduced 2.2 times, 0.1 times lower than at the end of September 2025. Being this is all recognized by the previously shared S&P rating improvement. Starting to the next page, transformation products reached 546 million euros on a reported basis, growing 4.6% year-on-year and representing 36.2% of total sales, compared with 35.1% in 2025. The evolution is even clearer excluding ABOS, divested earlier in 2026. When this is isolated, Transformation Products accelerated the growth to 8.3%, reaching 536 million euros, a 50 basis points increase over the 7.8% growth we reported in the first half. Xables Penetration increased from 33.9% to 35.7% of sales, a 180 basis points increase versus the first nine months of 2025. Cash Today continues to show a solid performance and remains a key contributor to this growth. Customer acceptance across markets continues to grow as we deploy new solutions for different segments, and as clients enjoy the benefit of these solutions that integrate efficiency and security with a better cash management. As the environment we do business in evolves at an unprecedented pace, our transformation initiatives allow us to continue growing. But what is most important, they open us to a very promising future with solid growth perspectives. Transformation, therefore, remains one of the clearest levers to improve the quality of growth and the profitability profile of our company. With this, I hand it back to Miguel for the regional overview.