Prosegur Results 2009 Madrid, 25 th February 2010
Executive summary Total Growth Growth Profitability +6.6% +14.1% 2,187.0 2,051.7 205.0 234.0 Margin 10.0% 10.7% growth of 6.6% mainly due to the organic growth, (+1.3%) with the following breakdown : +3.7% Pure organic growth Maintaining levels of profitability achieving double-digit margins. The margin has improved by 0.7 percentage points compared to 2008-2.4% due to negative impact of exchange rates 2
Overview of Prosegur 2009 financial results Profit and Loss Account 2,051.7 2,187.0 DA 258.7 12.6% 294.9 13.5% Depreciation -51.5-60.9 Amortization of goodw ill -2.1 0 205.0 10.0% 234.0 10.7% Financial Results -22.3-19.8 Profit Before Taxes 182.8 8.9% 214.2 9.8% Taxes -57.5-64.7 Net Profit from Ordinary Business 125.2 149.5 Result from Discontinued Activities 1.4 0 Net Profit 126.6 149.5 Minority Interests 0.4 0.7 Net Consolidated Profit 127.0 6.2% 150.1 6.9% Var. +6.6% +14.0% +14.1% +17.2% +19.3% +18.1% +18.2% 3
analysis Profit and Loss Account DA Depreciation Amortization of goodwill Financial Results Profit Before Taxes Taxes Net Profit from Ordinary Business Result f rom Discontinued Activ ities Net Profit Minority Interests Net Consolidated Profit 2,051.7 2,187.0 258.7 12.6% 294.9 13.5% -51.5-60.9-2.1 0 205.0 10.0% 234.0 10.7% -22.3-19.8 182.8 8.9% 214.2 9.8% 57.5 64.7 125.2 149.5 1.4 0 126.6 149.5 0.4 0.7 127.0 6.2 150.1 6.9 Var. +6.6% +14.0% +14.1% +17.2% +19.3% +18.1% +18.2% Breakdown of sales growth Total +6.6% 2,187.0 2,051.7 109.6 Organic +1.3% 2,077.4 from acquisitions: Norsergel Brazil Orus Peru Punta Systems Prosegur Activa Valtis France Giasa Argentina Blindados SRL - Uruguay Ryes Mexico Setha Brazil Centuria Brazil Segmatic Chile Maison de la Sécurité France The pure organic growth was +3.7%, having the exchanges rates a negative impact of -2.4% 4
Operating margin analysis Profit and Loss Account Var. 2,051.7 2,187.0 +6.6% DA 258.7 12.6% 294.9 +14.0% 13.5% Depreciation -51.5-60.9 Amortization of goodwill -2.1 0 205.0 10.0% 234.0 +14.1% 10.7% Financial Results -22.3-19.8 Profit Before Taxes 182.8 8.9% 214.2 +17.2% 9.8% Taxes 57.5 64.7 Net Profit from Ordinary Business 125.2 149.5 +19.3% Result f rom Discontinued Activ ities 1.4 0 Net Profit 126.6 149.5 +18.1% Minority Interests 0.4 0.7 Net Consolidated Profit 127.0 6.2 150.1 +18.2% 6.9 Evolution of margin 11.6% 10.4% 10.7% 10.9% 10.3% 9.5% 9.5% 9.8% 1Q 2Q 3Q 4Q 5
Financial and Tax results analysis Profit and Loss Account Var. 2,051.7 2,187.0 +6.6% DA 258.7 12.6% 294.9 +14.0% 13.5% Overview of Financial Results In 2009, Prosegur s net financial results reached the amount of 19.8 million which implies a decrease of 2.5 million compared to 2008. The financial expenses breakdown is as follows: Depreciation Amortization of goodwill Financial Results -51.5-2.1 205.0 10.0% -22.3 Profit Before Taxes 182.8 8.9% Taxes 57.5 Net Profit from Ordinary Business 125.2-60.9 0 234.0 +14.1% 10.7% -19.8 214.2 9.8% 64.7 149.5 +17.2% +19.3% The pure financial expenses reached 14.4 million (vs. 21.5 million) which implies a decrease of 7.1 million compared to 2008. This decrease is due to the reduction of the interest rates The adjustments to foreign exchange rates and derivatives contracted by Prosegur in order to neutralize the impact of fluctuations in exchange rates and interest rates had a total net impact of 16.2 million. However, the income generated due to the fluctuations of the exchange rates has amounted 10.8 million. As a result, the net effect of both impacts represents a cost of 5.4 million euros Result f rom Discontinued Activ ities Net Profit 1.4 126.6 0 149.5 +18.1% Overview of tax charges Minority Interests 0.4 0.7 Net Consolidated Profit 127.0 6.2 150.1 6.9 Tax rates have decreased by 1.3 percentage points, moving +18.2% from 31.5% in 2008 to 30.2% in the current financial year 6
Abridged balance sheet Non Current Assets Tangible fixed assets Goodwill Intangible asset s Available-for-sale financial assets and others Assets due to deferred tax Current Assets Inventories Customers and other receivables Available-for-sale non current asset s Derivative financial instruments Cash equivalents and other financial asset s ASSETS Net Equity Share capital Treasury share Accumulated difference and others reserve s Non Current Assets Long term bank loans Derivative financial instruments Other non current assets Current Liabilities Short term bank loans Derivative financial instruments Suppliers and other payables Other current liabilities TO TAL NE T EQUITY AND LIABILITIES 31/12/2008 710.5 281.7 270.5 75.9 34.5 47.9 732.0 24.4 492.8 0.4 7.3 207.1 1,442.5 424.6 37.0-29.4 417.0 403.5 222.5 0.3 180.7 614.4 133.1 1.5 387.0 92.8 1,442.5 31/12/2009 880.8 325.0 363.3 98.4 38.1 56.0 703.8 29.9 594.8 0.4-78.7 1.584.6 527.8 37.0-40.2 531.0 406.5 173.2 1.8 231.5 650.3 137.6-424.6 88.1 1,584.6 7
Investments and Net Banking Debt evolution Operating Capex 101.9 71.6 Maintenance of a strong investment policy for enhancing operational excellence and continuous innovation % over sales 5.0% 3.3% Note: The 2008 Capex figure includes 12 million of extraordinary investments in land /building 195 Net Net Banking Debt 154 147 143 172 171 213 234 The company's net banking debt amounted 234 million Note: The securitization of the client portfolio in Spain and Portugal reached 113 million in 2009 Mar. 08 Jun. 08 Sep. 08 Dec. 08 Mar. 09 Jun. 09 Sep. 09 Dec. 09 8
Breakdown of 2009 Prosegur results by business areas Corporate Security Services +5.8% 1,940.5 2,052.8 Total Prosegur +6.6% 2,051.7 2,187.0 179.1 209.4 Margin 9.2% 10.2% +14.1% 205.0 23 4.0 + Residential Security Services +20.7% Margin 10.0% 10.7% 111.2 134.2 25.9 24.6 Margin 23.3% 18.3% 9
Corporate Security Services 10
Breakdown of 2009 Corporate Security Services results by geographic regions Europe -2.9% 1,196.1 1,161.8 Total Corporate Security Services +5.8% 74.5 78.2 1,940.5 2,052.8 Margin 6.2% 6.7% Margin +16.9% 209.4 179.1 9.2% 10.2% + LatAm +19.7% 891.0 744.4 104.6 131.2 Margin 14.1% 14.7% 11
Corporate Security Services: European Revenues Total sales. Total Growth Total Europe -2.9% 1,196.1 1,161.8 2008 2009 Romania France -3.3% +9.5% 9.1 8.8 120.6 132.1 Note: Romania consolidates at 50% Portugal -1.4% 138.2 136.2 Spain -4.7% 928.2 884.7 12
Corporate Security Services: Latin-American Revenues Total sales. Total Growth Mexico +109.5% 7.4 15.5 Total LatAm +19.7% 891.0 744.4 Note: The growth is +138.5% without considering the exchange rate effect Colombia Peru +46.2% 48.9 71.5 32.1 +0.9% 32.4 Note: The growth is +5.9% without considering the exchange rate effect 2008 2009 Brazil 350.1 +24.8% 437.0 Note: The growth is +27.7% without considering the exchange rate effect Note: The growth is +43.6% without considering the exchange rate effect Argentina Area* Chile +10.4% +6.4% 256.9 73.0 77.7 232.8 Note: The growth is +9.4% without considering the exchange rate effect Note: The growth is +23.4% without considering the exchange rate effect * Argentina, Uruguay and Paraguay 13
Highlights of the period Europe LatAm Region sales dropped 2.9% in 2009, compared to 2008. This was Even after the negative impact of the exchange rates in all the due to: countries except Peru, the region has achieved a double-digit growth Slight deterioration of volumes in Spain, not significant in any of the particular businesse s Revenues decreased in Romania and Portugal as a result of the current market situation and good performance in France as a result of the positive effect of Valtis acquisition Overall, margins have been stable in the region in sales The higher organic growth has been complemented with the positive impact of acquisitions, highlighting the acquisitions of Norsergel in Brazil and Orus in Peru (both consolidating since 1st July 2009) 2009 margins have been stable in all countries across the region Acquisitions in 2009 (only Corporate Security Services) Within the Prosegur's strategy of combining organic and inorganic growth, a number of acquisitions have been executed in 2009 which strengthen our company s presence in the current markets: Company Country Date of Consolidation Activ ity Contribution in sales 2009 Ryes Mexico Jan. 2009 Guarding Services (specialization in goods transportation escort) 4.2M Setha Brazil Feb. 2009 Electronic Systems 8.6M Centuria Brazil (Estado de Espíritu Santo) Feb. 2009 Guarding Services 3.4M Giasa Argentina Feb. 2009 Electronic Systems: Corporate Alarms Monitoring (banking sector) 6.6M Valtis France Mar. 2009 Valuables Transport and Cash Management 13.4M Orus, S.A Peru Jul. 2009 Guarding Services 14.1M Segmatic Chile Jul. 2009 Electronic Systems: fire protection 4.5M Norsergel Brazil Jul. 2009 Valuables Transport, Cash Management and Guarding Services 49.6M Blindados SRL Uruguay Ago. 2009 Valuables Transport and Cash Management 0.2M Maison de la Sécurité France Dec. 2009 Contracts portfolio guarding services 1.0M 14
Residential Security Services 15
Residential Security Services 2009 results analysis Total Growth +20.7% Highlights of the period 111.2 134.2 Margin 25.9 23.3% -5.0% 24.6 18.3% Strong growth in Prosegur Activa s business both in connections and revenues, including the positive effect from incorporating the Telemergencia business in Chile (2008), Punta Systems in Uruguay and Orus Seguridad Electrónica S.A in Peru (2009) Deterioration of the margins as a result of the integration of acquisitions and changes in accounting criteria of sales of new connections Currently Prosegur Activa is present in 6 countries Connections 2008 276,845 2009 293,532 16