Prosegur enters South Africa after acquiring 33.33% of SBV Services

Madrid, 29th February 2016. – Prosegur, a worldwide leader in the private security sector, earned a consolidated net profit of 183 million euros in 2015, 15.5% higher than in 2014. It reported total revenue of 3,959 million euros, 4.7% higher than the previous year.

EBIT amounted to 324 million euros, 5.5% higher than the 2014 figure. EBITDA also rose 5.3% to 448 million euros. Both these figures have grown more strongly than revenue, underlining the effectiveness of Prosegur's business model, even in adverse economic conditions.

At the close of the year, Prosegur had continued the trend initiated in Q3 2015 earnings, with sustained growth in the three business lines: Alarms, Cash in Transit, and Integrated Security Solutions. These earnings are underpinned by a very solid performance in Spain and Argentina. It also shows Prosegur resourcefulness in maintaining positive organic growth in Brazil, despite the challenges facing the Brazilian economy. Taking these factors into account, the company has an optimistic outlook for all its businesses as a whole in 2016.

Prosegur has maintained its organic growth in all its business lines
In 2015, Alarms was the business unit which reported strongest growth. Alarm sales increased to 209 million euros, 15.0% higher than in 2014. The number of alarm installations also increased to 439,000, 10% higher than in 2014, so in one year it has succeeded to grow more than the three previous years put together. In Latin America, sales rose particularly sharply, by 23.2%, to reach 100 million euros. In Europe, the company reported sales of 108 million euros, 8.3% up. Prosegur will maintain this firm pace of growth by continuing to invest in sales and marketing teams. A good example of this is the extension of its joint venture with its partner in India to explore sales opportunities in the Indian alarms market. Along with this organic growth, Prosegur expects to add inorganic growth.

The Cash in Transit division has shown a stable and consistent performance over the course of the year. The division saw an increase of 6.1% in sales to 1,766 million euros in 2015. In the Europe and Asia-Pacific region, sales increased by 3.9% to 535 million euros as a result of several factors, including, recovery in activity in Spain and Portugal, and growth in the German and Australian markets. Revenue in Latin America increased to 1,231 million euros, 7.1% higher, which, taking into account that this includes the negative exchange rate impact for Brazil and Argentina, underlines the robust base of the Cash in Transit business in the region. Within this division, a noteworthy development has been Prosegur's entry in South Africa, where it has acquired a 33.33% interest in the capital of SBV Services, the leading cash in transit company in the country. This deal show's Prosegur strong commitment towards a sector which has potential development and growth opportunities.

Lastly, the Integrated Security Solutions business still accounts for the highest proportion of the Group's total revenue, at 50.1%. In 2015, this division reported total sales of 1,985 million euros, 2.5% up on the previous year. Sales in the Europe & Asia-Pacific area contracted by 1.2% to 955 million euros, mainly due to the client portfolio optimisation process which was carried out in France. There are very positive figures in these results, such as the growth in Spain, both in already existing clients and also in the new contracts awarded. It is also important to note that technology plays an increasingly important role in the product mix marketed by the division. Lastly, the company obtained sales of 1,029 million in Latin America, 6.1% higher.

Latin America remains an essential driver for Prosegur 
By region, Latin America is still one of Prosegur's most important pillar of growth, an area where it has increased its sales by 7.3% to 2,361 million euros. In Brazil, Prosegur reported total sales of 895 million euros. The business posted organic growth of +0.4%, showing that the drop in sales is largely due to the adverse impact of the exchange rate. In 2015, Prosegur has adjusted its operations to the current economic situation on the Brazilian market, to guarantee growth in its business activities in future years.

In the Argentina area (Argentina, Paraguay and Uruguay), sales were up 42.5% to 990 million euros. Peru and Chile posted growth of 11.2% and 11.6% respectively. The positive trend in Mexico was continued, with growth of 10.2% at the close of 2015. Revenue in Colombia was down to 111 million euros, but shows recovery against the downturn shown in previous years.

In Europe and Asia-Pacific, the three divisions together achieved revenues of 1,598 million euros, 1.1% higher. Spain is a particularly bright spot in the region, with sales rising 4.7% to 896 million euros. Germany and Portugal posted growth of 1.6% and 1.9% respectively. In France, the fall in sales moderated, and at the close of 2015 revenue was 213 million euros, 8.2% lower than the previous year. Prosegur expects to complete its implementation of the margin protection policies and client portfolio optimisation measures in the first quarter of 2016, although according to the company's estimates, recovery in the France business will remain slow for the time being. Lastly, sales in the Asia-Pacific region amounted to 132 million, 8.7% higher, on the back of the solid performance in Australia cash in transit and the Integrated Security Solutions business in Singapore.

Prosegur maintains a solid financial profile and a commitment to profitability
These results confirm Prosegur's commitment towards profitability, cash generation and to optimising its debt structure. Indeed, working capital figures have improved during 2015, leading to very robust operating cash flow.

In terms of net debt, at the close of 2015 Prosegur had a leverage ratio of 1.3x EBITDA, down from 1.4x in 2014; the company also had greater liquidity in the form of cash, and its available financing facilities with very good terms; all of which confirm Prosegur's financial robustness and its capacity to carry out organic and inorganic growth plans.

This financial strength has been valued by rating agencies. As was indicated in the last quarter, Standard & Poor’s improved Prosegur's liquidity profile from “stable” to “strong” and confirmed the company's rating as BBB with Stable outlook. Prosegur was also given a Baa2 Stable rating by Moody’s.