Prosegur Compania de Seguridad Aktie

Good day, and thank you for standing by. Welcome to the Prosegur Q1 2026 Results Presentation. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Cristina Casado. Please go ahead.

Good afternoon, and welcome to the Prosegur First Quarter 2026 Results Presentation Webcast. Before we start, I would like to remind you that this presentation has been prerecorded and that it will be available on our corporate website. I will now hand you over to our CFO, Maite Rodríguez.

Good afternoon, and thank you all for your presence. We are pleased to present a strong first quarter with our main financial and operational indicators showing year-over-year increase and enhancement. This is clearly evidenced in our cash generation throughout the period. A special highlight to the performance of our security business is needed as it continues to outperform and contributing to both results and cash generation. With this good start, we are confident that we are on the right track to comply with our main objective of generating value for our shareholders. Now with all this in mind, let's deep dive into the most significant aspects of the period.

Our top line grew by 1.5% compared to the same period of last year. And as it has been the case for some time now, was fully driven by organic growth. Indeed, the later went up to 8% without considering the negative FX impact, mainly stemming the Argentinian peso and the U.S. dollar. As per the sustainability of the metric, it can be seen that all regions grew with a special highlight in the APAC region, where cash volumes continue to increase at very healthy levels. The same is true for the U.S.A., country where our security business is currently focused. As for profitability, EBITDA stood at EUR 87 million, pretty much in line with the previous year.

As we shall later see, this is entirely due to cash business, which was negatively impacted by the macroeconomic environment and country mix dynamics. Our security business for its part, outperformed last year's results, marking a 12.7% increase in EBITDA, driven by best-in-class operational execution and a clear commitment to geographic diversification. For our Alarms business, as we will see, we are strategically focused on enhancing the profitability of new customer acquisitions. As outlined at the Alarms Capital Market Day, we have shifted our growth strategy towards quality growth, prioritizing lower churn and faster payback on acquisition costs. Thanks to an efficient working capital management and keeping infrastructure CapEx under control, operating cash flow totaled EUR 8 million compared with a negative EUR 19 million that we generated last year.

It's good to highlight that the EUR 27 million of additional cash were generated with virtually the same EBITDA, demonstrating the strong commitment of all business units to cash generation in order to reduce debt. As always, our main premise is to continue growing but always being mindful of leverage. Not only we reduced EUR 28 million in total net debt, but our leverage ratio stands at a healthy 2.4x level relative to EBITDA. Besides, our financial debt is both well structured in the long run and cheap. We are confident that going forward, our leverage ratio should continue to go down, considering the seasonality of our cash generation throughout the year. I would like to mention a few relevant highlights in the period. From a debt perspective, the EUR 600 million cash business bond was fully paid and amortized. At the same time, we entered into a EUR 60 million loan agreement with European Investment Bank to finance specific initiatives related to digitalization of our operations.

With this latest transaction, our debt is refinanced for the coming years with more than 60% at fixed rates, providing balance sheet stability and resilience against potential unforeseen impacts stemming from the current geopolitical environment. Finally, for your awareness, we have decided to integrate our cyber business into our security business. We believe this is a natural step as the former will help expand the later current product suite, creating mutual synergies in a build-to cycle. Let's now turn to Slide 2, where I would like to deep dive into our sales and EBITDA figures. As said, total sales during the first quarter increased by 1.5% over last year, reaching EUR 1.3 billion. Discounting for the FX effect, almost the entire growth was organic, evidencing our strict policy when it comes to passing through inflation to prices.

At the same time, volumes continue to grow, both in our most traditional businesses without exception and most importantly, in our transformation products. Turning to geographic sales diversification. Rest of the World continues to be the main growth driver, which is a natural outcome given the inclusion of both the U.S. and APAC regions. As this trend continues to consolidate and we see no factors that should [ hider ] it, it is expected to have a positive impact on the overall sustainability of the group. Latin American performance was primarily affected by the impact of currency devaluation and its effect on the geographic mix. Moving on to profitability. EBITDA reached EUR 87 million, broadly in line with last year.

The EBITDA margin remained stable at 6.8%. Let's now turn to our full P&L that, as it can be seen, showed a remarkable increase compared to last year. The performance all the way down to EBIT will be thoroughly explained when we discuss the performance of each business. However, as it can be seen, the drivers of the net income enhancement are both financial results and accrued taxes. As for the former, the increase is mainly explained by better FX results compared to the previous year. Going further down to accrued taxes, the astonishing close to 480 basis points reduction in the effective rate should be highlighted. The rationale behind this reduction is twofold. On the one hand, we have better results in all individual geographies. And on the other, negative results stemming from hyperinflation, accounting and dividend upstreaming were significantly reduced.

All the above led to a consolidated net profit of EUR 33 million, achieving a 15.2% higher year-over-year. Let's now turn to cash generation during the period. As it can be seen, following the historical seasonality of the business, free cash flow reduced in negative EUR 32 million, that is EUR 22 million higher with respect to the previous year. As mentioned earlier, after adjusting for volumes sold, our cash generation capacity can be considered stronger than in 2025.

This is evidenced when we take a closer look to the working capital requirements line. Indeed, compared to last year, it decreased by EUR 23 million, driven primarily by our efforts to reduce DSO. Net financial debt reached EUR 1.4 billion, resulting in a total net debt-to-EBITDA ratio of 2.4x. It's worth highlighting that both the terms and the structure of our debt is very healthy with an average cost at 2.9% with a high percentage of our debt at fixed rates, providing protection against any macroeconomic uncertainty for the coming years. I would like to remark the EUR 28 million reduction in net debt achieved despite the typical first quarter seasonality, underscoring our strong commitment to deleveraging. We expect this positive trend to continue throughout 2026.

That's all from me for now. I will now turn the presentation over to our Head of Investor Relations, Juan Ignacio Galleano, who will give you more detailed information on the development of the specific business areas.

Thank you very much, Maite. Let's now have a look at the results of each business line covering the main performance indicators and most relevant aspects of the period. Starting with our cash business, I would like to reinforce the 3.2% of organic growth that we achieved during the first quarter. This increase comes not only as a result of rapidly passing through cost increase to prices, but more importantly, volumes continue to grow, albeit at different paces depending on the region. That is why our diverse geographic footprint plays an outstanding role. Indeed, in the APAC region, volumes are growing at a healthy pace, compensating more mature countries where volumes remain quite stable. The depreciation of main currencies resulted in a 6.6% reduction when measured in euros, meaning that total sales will have increased by almost 10% should the currencies have remained the same. When it comes to profitability, EBITDA was negatively impacted by the macroeconomic situation in Argentina.

At the same time, it's worth remembering that the comparable base is especially demanding this quarter as the first quarter of 2025 results in Argentina were developed under a context favored by the tax amnesty. At a cash flow level, operating cash flow reached EUR 18 million, EUR 6 million higher than last year. This increase is mainly explained by working capital requirements as DSO were reduced. It is also worth noting that CapEx remained under strict control. Transformation products continue to favorably evolve, evidenced in the 36.4% of actual share of total sales. We are certainly benefiting from all CapEx deployed in both cash today and the ForEx business. Needless to say, increasing the percentage in the context of higher sales deserves even more credit. Let's now turn to our Security business, which continues to show a solid and positive evolution over time.

Total revenues reached EUR 685 million with the organic share reaching 9.6%. This is mainly driven by our volume-based strategy that leads to operating leverage, our capacity to pass through inflation to prices and the outstanding performance of the operation in the U.S. The U.S. indeed has become the second largest country by revenue in the first quarter. And although pricing still needs to be reviewed in other markets, this is a positive indicator of its growth potential. All the above, coupled with enhanced efficiencies, absenteeism management and operating leverage resulted in total EBITDA reaching EUR 19 million, 13% higher compared to the same period of last year. This is by every means impressive considering the volume-led nature of the business. Margins for their part continued to increase, reaching 2.8% during the first quarter. However, the increase will be less significant over the course of the year.

Nevertheless, -- we expect to maintain a positive margin improvement trend driven by rigorous operational management and double-digit growth in key countries. Cash generation deserves special mention. Indeed, we've already reached breakeven in the first quarter, something unthinkable years ago. This evidently put us in the right track to achieve another year of strong cash generation. Among the reasons behind such an increase, we should highlight higher sales with higher gross margins, coupled with an enhanced treasury management evidenced by a sharp reduction in DSOs.

It is also important to highlight that we are now reaping off the benefits of the investments made in technology in recent years, enabling our guarding service to deliver differentiated added value to clients through their technological components. Let's now turn to the Alarm business, where in line with what we anticipated at our last Investor Day, we are pursuing a stricter control with the new clients that we are incorporating with the only objective of increasing returns and thus reducing paybacks. Let me go through the strategy in detail as it has a direct impact on the operating indicators in the quarter. The first thing we've decided to do is to increase the acquisition price.

This is the amount that every new client must to pay to partially cover the acquisition cost, mainly materials and labor. The idea behind this is twofold. On the one hand, to reduce the net acquisition cost, which has, as you can tell, a direct and positive correlation with payback. On the other hand, the acquisition price is significant and relevant variable when explaining churn rate. Indeed, the more the client pay upfront, less inclined to churn he or she will be, other things equal. This naturally has another relevant impact in reducing payback periods.

The other thing that we've done has to do with internal process, but it's worth explaining it as it accounts for the increase in churn rate, at least in [ RoW ]. Indeed, we've reduced by 30 the number of days of late payment after which a client is deemed at risk, triggering the cancellation of the service. This led to an increase in what we call involuntary churn, which drove the total churn rate to 13%. Having explained the new business model, let's now deep dive into the performance of the main financial and operational indicators. Our client base totaled 1.1 million, marking an 8.9% increase year-over-year. In our row business, the reduction in the number of new clients is mainly due to the increase in the acquisition price, as we already mentioned. ARPU in Row was negatively impacted by the depreciation of the Argentinian peso and by the fact that last year, we anticipated much of the yearly price increase into the first quarter.

Nevertheless, service margins increased by 2 basis points, up to 50%. In the case of [ MPA ], both ARPU and service margins increased 3.5% and 17.4%, respectively, indicating a very good and healthy performance. As for the acquisition costs, the increase in both cases has to do with a deliberate strategy of increasing marketing expenses. As thoroughly explained in our last Investor Day, following a push strategy sets the virtuous cycle in motion, leading to a multiplication effect. At the same time, in the case of [ RoW ], it is also true that following our already mentioned strategy, the number of new clients were reduced, thus impacting in our ability to dilute fixed costs. Let's now turn to the following slide to see how all these indicators merge into recurring cash flow.

In the charts above, what we are showing is the 12-month rolling recurring cash flow of both Prosegur Alarms and MPA. The one on the right side clearly indicates that the generating cash flow capacity of the 2 businesses combined for Prosegur stands at EUR 67 million, 9.6% lower year-over-year. The reason of the decline has to do with row, particularly due to the higher registered involuntary churn due to the new policy and higher acquisition costs.

This concludes our analysis of the performance of each business line for the first 3 months of the year. Thank you all for your attention. I will now hand the microphone back to our CFO, Maite Rodriguez, for his closing remarks.

Thank you very much, Juan Ignacio. To finish today's presentation, let me go through some relevant news that I want to share with you. Indeed, we continue to deliver on our strategic priorities across both sustainability and innovation. The recent upgrades in our [ MSCI ] and [ EcoVadis ] rating highlight our progressive track record, increasing ESG maturity and reinforce our commitment. As mentioned before, in parallel, we have bolstered our capital structure through a EUR 60 million fixed rate loan from the European Investment Bank, marking our second partnership with the institution.

These funds are strictly earn market to drive our digital transformation and [ R&D&I ] projects, ensuring we remain at the forefront of the industry while meeting the highest international standards. To conclude, the first quarter confirms the strength and resilience of our business model. We delivered solid operations performance, maintaining a stable profitability despite macroeconomic headwinds with broad-based growth across regions and particularly a strong momentum in security.

At the same time, cash generation has significantly improved, allowing us to reduce net debt even in a seasonally weaker quarter, clearly demonstrating the group's enhanced focus on cash discipline and balance sheet strength. Our financial position remains robust, supported by a well-structured debt profile, a high proportion of fixed rate financing and reinforcing liquidity, providing resilience in the current macro and geopolitical environment. Strategically, we continue to execute on our key priorities, improving the quality of growth in alarms, driving operational excellence in security and advancing our transformation through technology and digitalization.

The integration of cyber into security is a clear step in this direction, strengthening our value proposition and unlocking additional synergies. Looking ahead, we remain firmly focused on disciplined growth, sustained margin improvement and a strong cash generation with a continued commitment to deleveraging and long-term value creation for our shareholders throughout 2026.

This was all on my side for this results presentation. I would like to thank you all once again, and we are now open for Q&A. Thank you very much.

[Operator Instructions] We will now take our first question from the line of Manuel Lorente from Santander.

So probably my first question is regarding the underlying extremely supportive top line growth on security, whether you can give us a little more information regarding its geographic split or its split of volume versus prices or even the underlying growth, excluding the, let's say, the consolidation from cybersecurity? And my second question is whether you can explain again this, let's say, momentary increase in churn rates from this voluntary churn new policy.

Thank you, Manuel. In relation to your first question about the growth of security, I think that the most remarkable growth is coming from U.S.A. It's also doing very well in Spain. But in Spain in U.S.A., we are doing -- we are growing double digits. So it's mainly coming from there. In terms of volume and prices, now we are at the beginning of the -- in the first Q. So now we are -- in some countries, depending on the country, in some countries, we are in 50-50. In other ones, we are 100-0. It depends. But in average, it's 50 -- sorry, 40-60, 60 price, 40 volumes. And in terms of how much is coming from cybersecurity, it's 0. So the EBITDA of cyber this month -- this quarter was 0. But we are very happy of how security is evolving, not just because of the double-digit growth of USA, but also because of the cost pass-through into prices that we are also doing very well.

And here, the growth in security, as all you know, goes very slowly because it's a volume company, as I always said. And we will continue on the same track, and that's also a very, very positive thing. And also the cash generation that it's the first time that in the first quarter, although we didn't pass 100% of the cost into prices, we are in a breakeven in [ cash ]. So that's a very good news. And in relation to your second question about the increase in the involuntary churn rate, we -- Juan Ignacio explained it in the presentation, but I'm going to split it a little bit again just in case someone didn't get it. And that's why I appreciate your question, Manuel, because here, we have changed our strategy. From one side, we have increased the acquisition price has increased.

So that means that the more the client pay upfront, the less inclined to churn will be. So that is going to -- in the future, it is going to reduce our churn rate, and it's going to improve our payback. But now we are in the -- let's say, in the worst scenario because we will have to wait to have a very good quality of portfolio in the future with that good churn rate that will come because of increasing the acquisition cost -- the acquisition prices, sorry. But we are also very -- have changed the involuntary churn policy. So what we have done is we have decreased 30 days of late payment after which a client is considered at risk, triggering the cancellation of the service.

So that means that we are going to have a higher churn than expected -- and that's why if we compare it even with the guidance that we did in the Capital Market Day, we are higher in terms of churn rate, but mainly it's coming because of that, because of changing this policy, trying to be more strict in what we internally consider risk BTC. So in this sense, what we think is that for year-end, we are not going to have a very -- a higher churn than one that we have now. So we will just have good news in that sense. But now we have just adopted the new policy. So we have like this kind of a one-off in the BTC. And that's why the churn has also been increased.

So let's say that the churn rate has increased because a combination of 2 things. First is this technical thing, so to speak, as the days of clients has diminished by 30 days. And then we have the strategic shift, let's say, from a more premium type of clients and increasing the upfront payments, blah, blah, blah, blah. So let's say that the technical churn increase, I agree with you that it might be something that might last for a shorter period of time. But the, let's say, the more strategical shift on the policy of the company, you also believe that it might end up the year with a similar churn rate in the rest of the world than in 2025. Is that soon? Or we might see some, let's say, we might need a little bit more time to adjust the combination of those 2 factors.

It's going to take time. For example, in the second Q, you will see that the churn is not going to decrease. But in the third and fourth Q, it will decrease because the sales force also needs to be used to try to sell now at the beginning, remember that we used to sell in some countries at 0 cost, and now we have increased that at front amount. So that needs sense and they need to be adapted to this new commercial strategy. And that's why first Q and second Q are going to be hard in that sense. Third Q and fourth Q, we will start observing the first results of this new strategy. So for your -- for your model, if I will have to put a churn rate for year-end should be in the case of [ RoW ] between 12, yes 12 something in the case 12 something. And in the case of [ MPA ] between 9% and 10%, something like that.

We will now take the next question from the line of Alvaro Bernal from Alantra.

I have a couple. The first one is in Security, I'm sorry to go back again. I just want to confirm if you see the organic growth levels being maintained throughout the year? Because if so, logically, the FX hit will be lower from now on, especially when comparing the U.S. and therefore, growth rates should be significantly higher. And I just wanted to confirm that. And then also in Security, I was surprised by the comment that Juan Ignacio made that you expect the EBITDA growth to be less significant throughout the year. If you can develop on this, it would be very helpful. That's my first question. And then the second one is just if you can give us a bit more disclosure on the others EBITDA line. Last year, by differences, we could see EUR 8 million. This year, it has been EUR 12 million. And I just wanted to know the breakdown a bit better. I'm guessing it's alarms that has been driving the improvement, but a bit of disclosure would be helpful.

Thank you, Alvaro, for your questions. In relation to security business, -- now the growth was 9.6%. For the year-end, it's going -- I think that it's going to be slightly smaller than that figure. But we will have -- we will be on this good trend of increasing the relative margin and the margin that we have now. But the organic growth is -- I think that it's not going to be so that number. I think that will be in a lower number. In terms of how it's going to do in the -- I guess you were saying also about the growth of the year.

I guess that you were speaking about security or -- so if it's that on the question, what I already have mentioned will be in the same trend, positive trend. And for the group level, we will -- we are very close with what the consensus is saying. And in relation to your second question, the others in the EBITDA is coming from the other business lines, the Alarms, [ AVOS ] and the overhead.

Sorry. Yes. exactly. I know that it is corporate, the [ PGA ], AVOS and alarms, but if you can just let us know what has driven the improvement when you compare year-on-year because it has gone from [ 8 ] to [ 12 ]. And I just want to know if it's going to -- if it's being driven by the PGA, which we saw that it was volatile last year, and there was a rebalancing in Q4. And basically, I want to be able to know if this is going to be the same this year or if there is an underlying improvement in some other place, for example, alarms?

Okay. Understood, Alvaro. No, it's mainly coming from [ MPA ] because the service margin has improved. So that has made -- I do not have exactly the figure of [ MPA ], but I know that it has been bigger. So it's -- even the that it's around EUR 2 million. So it's mainly coming from MPA.

We will now take the next question from the line of Carlos Torres from CaixaBank BPI.

I've got 3, if I may. First, could you share the cost of the EUR 60 million financing secured with the European Investment Bank or at least indicate whether it's above or below your current average cost of debt? I think it was 2.9%. I mean just to clarify, I don't see it booked in the balance sheet yet. Should we think of this as an incremental debt or as a refinancing of the prior EUR 50 million facility once it goes into the balance sheet? That's the first one. Second, on cash flow, you mentioned a healthy leverage ratio of [ 2.4 ] that should decline throughout the year.

Do you have a target in mind, perhaps closer to 2x? Or alternatively in absolute terms, after the roughly, I think, EUR 36 million increase in net debt this quarter, should we expect positive free cash flow by year-end? Yes, third one, also a follow-up on alarms. Last year, you mentioned that acquisition costs should normalize or even decrease in 2026. Now you mentioned higher marketing expenses. So how should we think of this line going forward?

Thank you, Carlos. In relation to your first question about the new -- the refinancing debt that we have with the European Investment Banking, the cost is 3.2%, and it's done for the next 6 years. In relation to -- and it's not new debt, it's refinancing with a higher amount. In terms of the second question about the cash flow, we are now in 2.4x. For year-end, we do not expect in absolute terms to decrease it. But yes, in relative terms. What I mean is that, that 2.4 should decrease because the cash flow -- the business cash flow for this year should be higher than last year, much higher than last year, mainly coming because the DSO, we are really doing well.

That's why even in this first Q, you could observe a very good working capital that mainly is coming from an improvement in DSO because what it used to happen in the past was that we were good in DSO, but with a very high effort at year-end, but now we are doing that effort every month. And also coming from the stock that in the case with the new strategy that we are having in Alarms, we are -- the growth of alarms is going slower. So that means that I am not going to need so much stock, and that will also improve my cash flow.

So in that sense, and that's why in relative terms, we should decrease it. It will always depend also in the volume of security that now security is a very good cash contributor for the group. But if we grow a lot in the last 2, 3 months of the year, sometimes because of the volume, we also have an impact in our working capital. But it should be a much better cash flow than last year and with a very good management in working capital, and that's why in relative terms should decrease. And in terms of the subscriber acquisition cost of the alarms, -- we are investing in marketing. We are increasing a lot that expense. And with -- again, with this new strategy, we are growing less. So we have less scalability in our SAC. So that's why the [ SAC ] is also increasing from one side because we are not having that scalability and from the other one, because we are keeping the marketing investment.

[Operator Instructions]

There are no further questions at this time. I would now like to turn the conference back to Maite Rodriguez for closing remarks.

Thank you very much for attending this presentation. If you need further information, please contact our Investor Relations development, who is open to talk to you at any time. Have a nice day.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Good day, and thank you for standing by. Welcome to Prosegur Full Year 2025 Results Presentation Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded.

I would now like to turn the conference over to your speaker, Juan Ignacio Galleano, Head of IR. Please go ahead.

Good afternoon, and welcome to Prosegur Full Year 2025 Results Presentation Webcast. Before we start, I would like to remind you that this presentation has been prerecorded and that it will be available on our corporate website.

I will now hand you over to our CFO, Maite Rodríguez.

Good afternoon, and thank you all for your presence. We are pleased to present Prosegur results for the full year 2025. As you will see throughout the presentation, the company's results exceed those of the previous year in terms of growth and profitability, especially in the Security and Alarms businesses. This performance resulted in a more diversified and therefore, more sustainable cash generation profile.

It's worth highlighting that this should be the case now for the foreseeable future. Focusing on the P&L, consolidated net income achieved an impressive 54% increase, demonstrating not only the strong performance of the businesses, but also an efficient management of treasury and taxes. For all the above, we are confident that we continue to be on the right track to comply with our main objective of generating value for our shareholders.

Now with all this in mind, let's deep dive into the most significant milestones of the period. Sales grew by 0.5% compared to the same period last year. Organic growth reached 10%, although it was mostly offset by the FX effect. Meanwhile, the Security business has consolidated itself as the main growth engine of the group, driven primarily by increasing penetration in the U.S.A., along with a solid performance across the rest of the geographies.

Regarding profitability, EBITDA reached EUR 357 million, an increase of 8.9% year-on-year, mainly driven by the healthy growth in the Security business. Indeed, volume growth, together with an agile commercial strategy to pass through cost into prices explains this performance.

Our cash business continues to be affected by the macroeconomic situation in Argentina, which can be summarized in 3 key points. First, although the trade balance has improved, this has not yet translated into domestic consumption. Second, the Argentine peso has depreciated against the euro. And finally, monetary policy remains highly restrictive. Despite this impact, the business EBITDA margin remains at 12%, mainly explained by the accelerated growth in the European region, the double-digit growth in APAC and the strong performance across the remaining LatAm geographies.

For our Alarms business, as we will see, operational performance was clearly enhanced, reflected in better and healthier indicators. This is true for MPA as well as for Prosegur Alarms. As for cash generation, we were able to partially offset the slowdown in our cash business, thanks to the impressive full year cash flow generated by the Security business, which delivered EUR 87 million and has consolidated itself as a solid contributor to the group's diversified cash flow profile.

As mentioned and as we will review in detail later in the presentation, the combination of the cost saving program, FX volatility and the macroeconomic uncertainty in Argentina negatively impacted cash generation in our cash business. We continue to maintain a strong and solid debt position. Indeed, net debt stands at 2.4x EBITDA, slightly impacted by the decrease in the value of our Telefónica shares and the cash outflow associated with the extraordinary efficiency plan in the cash business. We would also like to highlight the proposed EUR 90 million dividend for 2026, which further reinforce our commitment to delivering value to our shareholders.

Let's now turn to Slide 2, where I would like to deep dive into our sales and EBITDA figures. As said, full year 2025 total sales increased by 0.5% over last year, reaching EUR 4.9 billion. Discounting for the FX effect, mainly in LatAm, almost the entire growth was organic, evidencing on the one hand, our strict policy when it comes to passing through inflation to prices. And on the other, our capacity to capture additional volume as we continue increasing our market share. As for geographic sales diversification, it should be noted that growth continues to be the main driver of growth despite the macroeconomic situation in Argentina.

Europe is accelerating its growth and both the U.S.A. and the APAC region continued to grow at above average rates. This is highly relevant and highlights the future growth avenues of our main businesses. As you are aware, in our Security business, we remain firmly committed to the U.S. market, given its scale, profitability profile and the considerable potential for further penetration, supported by our strong portfolio of our -- of products and services. In our cash business, our strategy follows 2 paths. In most mature markets, we are accelerating diversification through transformation-driven solutions. while in the APAC region, we continue to experience a strong growth in our traditional service offering.

Moving now to further review profitability. EBITDA reached EUR 357 million, marking a healthy 8.9% increase compared to last year. Our cash business registered an EBITDA of EUR 238 million, marking a 5% decrease compared to the previous year, recovering part of the drop seen in previous quarters. This includes the extraordinary expenses incurred due to the implementation of the cost saving program, fully offset this quarter by extraordinary income of a similar amount resulting from a lower deferred payment related to the acquisition of Change Group.

Turning now to our Security business. EBITDA amounted to EUR 19 million, 10.7% higher compared to 2024. Healthy volume growth, coupled with a strict discipline on cost, explained the enhanced performance. Technology sales further contributed to the good results. As we always explained, our ability to provide high-end tech solutions is one of our main competitive advantages and constitutes one of our main pillars. Lastly, our Alarms business continued to be on good track and good proof of this is the evolution of main financial indicators such as service margin and churn rate.

Let's now turn to our full P&L that, as can be seen, showed a remarkable increase compared to last year. The improvement in financial results, as previously noted in past presentations, is largely linked to the ongoing normalization of the Argentine economy. Inflation has been declining rapidly, significantly reducing the impact of hyperinflation accounting. At the same time, the sharp narrowing of FX spread has also helped, making dividend upstreaming considerably more efficient.

Moving down to accrued taxes. It is worth highlighting the 561 basis points reduction in the effective tax rate. The rationale behind this improvement is twofold. On the other hand, we recorded strong results across nearly all geographies, which have enabled us to offset prior year losses. And on the other, as mentioned earlier, the negative effects from hyperinflation accounting and dividend upstreaming were significantly reduced. All of the above led to a net income of EUR 119 million, representing a 53% year-on-year increase.

Let's now move on to cash generation for the period. At first glance, the EUR 26 million reduction in operating cash flow stands out. However, one point must be properly highlighted, the EUR 15 million in extraordinary severance payments related to the previously mentioned cost saving program in our cash business in LatAm. Although there was an offset at the P&L level through extraordinary income, there was no positive impact at the operative cash level. Excluding those EUR 15 million, the pro forma net cash flow amounts to EUR 137 million, which is EUR 4 million higher than in the previous year. As already mentioned, net financial debt reached EUR 1.35 billion, representing an EUR 11 million reduction compared with the year-end 2024.

With that in mind, the net debt-to-EBITDA ratio stands at 2.4x. Although CapEx control and improved working capital have supported performance, net debt remains above the level initially projected, primarily due to the external factors beyond our control, namely the depreciation of LatAm currencies and the decline in the value of our Telefónica shareholding. Excluding these 2 effects, we will have achieved our targets.

That's all from me for now. I will now turn the presentation over to our Head of Investor Relations, Juan Ignacio Galleano, who will give you more detailed information on the development of the specific business areas.

Thank you very much, Maite. Let's now review the results of each business line, focusing on the key performance indicators and the most relevant developments of the period.

Starting with our cash business, I would like to highlight the solid 5% organic growth achieved compared with the previous year. Our growth drivers remain robust. Volumes from our traditional business continued to expand at double-digit rates in the APAC region and transformation products continue to deliver strong results already representing 35% of total sales. It is also worth noting the acceleration of growth in Europe. Taken together, these developments provide a solid foundation for more sustainable growth in mature regions going forward.

At the same time, revenues from our traditional services in regions outside APAC continued to increase, partly due to effective inflation pass-through, but more importantly, because underlying volumes are still expanding. Regarding EBITDA, we have already referred to the extraordinary impact of the macroeconomic environment in Argentina as well as the severance costs associated with the cost-saving program deployed in LatAm during the year.

This latter extraordinary effect has been positively offset by another extraordinary impact related to an update on the deferred payments debt. Despite these headwinds, the business EBITDA margin remained stable at 12%, demonstrating both the resilience of the business and the strong performance delivered across all countries.

Moving to cash generation. Operating cash flow reached EUR 171 million, reflecting a 26% reduction versus the previous year. As previously explained, the EUR 15 million in extraordinary costs related to the cost saving program, along with FX effects largely account for this decline with no positive offset at the operating cash flow level. A further positive aspect is that the annual cost of upstreaming dividends from Argentina now stands at only EUR 1 million, a significant improvement compared with prior years.

Given the country's improving macroeconomic dynamics with inflation far below previous levels, we expect this cost to remain negligible going forward. Additionally, the recent credit rating upgrade of Argentina by Standard & Poor's to CCC+ provides yet another indicator of the country's ongoing normalization and recovery. On a final positive note, we should recognize the strong discipline maintained in both CapEx and working capital requirements.

Let's now turn to our Security business, which continues to show a solid and positive evolution over time. In fact, this business line has achieved a historical record in revenues. Sales reached EUR 2.6 billion with organic growth exceeding 12%. Growth was driven mainly by the Spanish and U.S. markets with the latter consolidating its position as the primary growth engine of the business. The strong contribution from the U.S. also explains the negative FX impact as the U.S. dollar continued to depreciate against the euro during the quarter.

It is also worth highlighting that in addition to these key markets, all geographies contributed positively to the business consolidated performance. These factors, combined with enhanced efficiencies and additional operating leverage resulted in EBITDA of EUR 90 million, representing a 10.7% increase versus the same period of last year. Margins also continued to expand, reaching 3.47%, driven mainly by a greater scalability, improved operational efficiencies, stronger commercial productivity and effective price pass-through alongside tighter absenteeism control.

Operating cash flow reached an amazing figure of EUR 87 million compared to the EUR 17 million registered in the previous year. This is an impressive milestone and sets a new performance benchmark for the business. We've now achieved volumes and margins that will consistently generate positive cash flows regardless of how aggressively we pursue sales growth. That said, the extraordinary cash flow generated by Security in the period has been positively impacted by approximately EUR 20 million that should be taken into account. This comes from a positive effect from the use of tax credits from previous years, a one-off impact that will not recur in future periods, and extraordinary advanced collections at year-end of approximately EUR 5 million, which will be difficult to maintain going forward and will have an impact on working capital during 2026.

Under a stable growth scenario, recurring cash flow from the Security business should range between EUR 60 million and EUR 70 million. And thanks to the strong cash generation of this business, further debt reduction as part of our strategy becomes increasingly secure and achievable.

Let's now move on to the Alarms business, where we keep improving most of KPIs quarter-by-quarter and year-by-year. As explained during the December Investor Day, the business strategy is strongly focused on profitability maximization and investment efficiency, supported by the various initiatives in product development, redefining a more prudent marketing strategy, improving the customer service experience and applying operational efficiencies enabled by AI.

All of this is having a direct impact on each of the KPIs, which continued to improve in the fourth quarter, maintaining the positive trend in 2025. Looking at the client base, we are pleased to report that year-on-year growth reached double digits with a 10.7% increase. Toward year-end, we decided to anticipate our strategy of increasing the acquisition income, that is the price we charge when acquiring a new client. This will result in a healthier and more robust client base, thus increasing ROIC and reducing paybacks.

Evidently, this impacted negatively in the number of acquisitions during the fourth quarter. As we always emphasize, growth is only meaningful when it's high quality in nature, which is why we are very pleased with the achieved results. In [ EMEA ], we continue to reduce the churn rate with a stable level of 9%, a reduction of 1 percentage point versus the previous year.

In Prosegur Alarms, churn has shown more resistance to decline, mainly due to the economic situation in Argentina, where severe financial pressure on households is negatively impacting churn behavior. But once the situation is now stable, we expect the churn reduction in Prosegur Alarms little by little. Both ARPU and service margins continue to grow at very healthy rates. It is important to note that going forward, we will report margins, excluding depreciation expenses following market practice.

Regarding acquisition costs, the increase in both businesses is the result of a deliberate strategy, rising marketing investment while continuing to enhance our product offering. In this regard, it is worth highlighting that new acquisition channels are expanding rapidly. We plan to continue investing in these channels as they provide high-quality connections at lower costs. As their share grows, overall acquisition costs should progressively decrease even as we continue investing in marketing and product enhancements.

Let's now move on to the next slide to review how all these indicators translate into recurring cash flow. The combination of higher service margin together with a stable or declining churn rate naturally leads to an increase in recurring cash flow, that is the cash generated after fully reacquiring the customers who churn. The charts above show the 12-month rolling recurring cash flow for both Prosegur Alarms and [ MPA ].

The chart on the right clearly illustrates that the combined cash generation capacity of both businesses for Prosegur now stands at EUR 81 million, representing a 14% increase year-over-year. As we have highlighted in previous presentations, recurring cash flow is consistently reinvested to fuel further growth. Even so, it remains the best reflection of the true cash generation capacity of the Alarms business, clearly demonstrating its strong ability to generate sustainable cash flows.

This concludes our review of the performance of each business line for the 2025 full year results. Thank you all for your attention. I will now hand the microphone back to our CFO, Maite Rodríguez, for her closing remarks.

Thank you very much, Juan Ignacio. Let me now share with you my closing thoughts on the most relevant conclusions of this results presentation.

Overall, as we have seen during the presentation, all businesses reported enhanced operating efficiencies and strong results. On a consolidated basis, total sales increased by 0.5%, reaching EUR 4.9 billion despite the adverse impact of currency depreciation and the macroeconomic situation in Argentina. EBITDA increased by 9%, while net income increased by a remarkable 53%, thanks to the good performance of all our business lines.

Normalized consolidated operating cash flow reached EUR 316 million once the EUR 15 million extraordinary impact are excluded. In our cash business, organic sales grew by a solid 5%, while we continue rolling out an ambitious cost saving program. This was supported by the strong adoption of our transformation product, which will enable further improvements in EBITDA margins over the coming months.

Turning to our Security business. Sales increased by 4% compared to the previous year and with margins reaching 3.5%, driven not only by scalability, but also by a robust client portfolio and effective price pass-through. Even more importantly, the business generated EUR 87 million in free cash flow, marking an all-time record.

Lastly, our Alarms business delivered very solid growth, accompanied by a strong performance across key management indicators. We saw improvements in churn, service margin and ARPU. This strength translated into a rolling recurring cash flow of EUR 81 million, representing a 14% year-over-year increase and confirming the business' robust cash generation capability. As mentioned at the beginning of the presentation, we delivered solid results this year, paving the way for the new 2026 -2029 strategic plan that we have just launched.

This concludes my remarks for today's results presentation. Thank you all once again for your time and attention. We will now open the floor for questions.

[Operator Instructions] We are now going to proceed with our first question. And the questions come from the line of Carlos Torres from CaixaBank BPI.

Carlos from CaixaBank. A couple of questions on my side, if I may.

First, to have a better understanding on the reported EBITDA overheads contributed positively with EUR 20 million in the first half. I were to assume a positive evolution on this line. So I'm wondering if you have allocated some of this margin across the rest of the divisions? And if so, in what proportion?

Second, you also mentioned a harsh backdrop in Argentina, and we were told Argentina margins in cash were higher. So I would like to understand if it all comes from the efficiency measures and therefore, if we can think of similar margins going forward and whether there's upside once Argentina activity and inflation reduction picks up or conversely, a lower inflation backdrop is weighting in volumes. So any comment on Argentina's drivers a bit more?

And finally, if I may, similar for Alarms. Reported EBITDA is also high compared to the first half, and I'm having trouble to get to this figure. So I'm wondering if there's any change in capitalization or if going forward, we can think of a similar or incremental figure year-on-year now that as you mentioned in the Capital Markets Day, you are more focused on cash flow generation in this division.

Carlos, for your questions. In relation to the first one about the overhead, you have to consider that this year and as we have been mentioning during the rest of the previous quarters, we have a higher royalty coming from trademark, mainly because of an agreement with the tax authorities that we signed last year.

This has to finally with final figures because, as you know, those royalties go in relation to the EBITDA of the year. So finally, that increase in comparison to previous year has to EUR 8.5 million. So the differences between overhead of last year in comparison to this year comes from this EUR 8.5 million, but you have to discount here some extra cost or extra expenses mainly coming from additional provisions of some bonuses and some 15 years old that discount around 3 million last year. So that's where the differences are coming from 4Q.

And maybe your question is also more related because it is true that in the second and in the third Q, the differences between 2025 and 2024 were higher it was also because the headquarters overhead in the businesses and now it's in this [ PGA ]. But when you compare 4Q this year with the full year with the full year last year are exactly the same. You are comparing exactly the same figures as it happens in the first Q, second Q and third Q. But the difference is just that at year-end is when we book the headquarters expenses.

Moving to your second question in terms of what's happening in Argentina. Yes, the drop is mainly coming from the macroeconomic situation that we are suffering there. As you know, we have had a 60% depreciation of the currency, 30% inflation impact. And those efficiencies amount EUR 15 million, EUR 3 million for this 4Q.

So that impact and we will have the run rate of those efficiencies will come in 1.5 years, 18 months more or less. But it is true that the economy of -- for this first Q, we will -- the improvement of Argentina that we expect 2023, it's going slowly. And for example, for this first Q, it's not going to be better. There is still an improvement. It's going very, very slowly.

And in relation to your final question about the Alarm, it's mainly coming from the difference. It's coming from the hyperinflation effect of Argentina. There is a big impact. As you know, in the Alarm business, we have a big amount of assets that like around 35% of the acquisition cost. We book them as a bigger asset, and we have to hyperinflate those assets, and that's why we have this impact this year because last year was smaller -- or sorry, higher.

[Operator Instructions] We are now going to proceed with our next question. And the questions come from the line of Enrique Yáguez from Bestinver Securities.

I was late. I don't know if this question have been asked, but I will ask anyway. The first one is if you could provide what has been the impact of the increased royalties received by the holding company in cash and Security. In other words, what would have been the adjusted EBITDA margin, excluding those impact because probably it was higher than reported?

And the second question with the artificial intelligence disruption, I don't know what impact can this have in your business? How likely to suffer a disruption from this trend?

In relation to your first question, I have in my mind the impact, the differences of those EUR 8.5 million of increase between 2025 and 2024. But if you want later on, Juan Ignacio could provide you the higher detail because I really don't have enough. And in terms of [indiscernible] question, I couldn't hear you well. If you could repeat it again?

Yes. How likely to be affected by the artificial intelligence disruption taking into account that this is affecting companies in software, back office, this kind of stuff?

Okay. Thank you. It's an amazing opportunity. We are really working hard on implementing a lot of artificial intelligence on the full business, not just in the [indiscernible] front back and other specific systems like related to more specific customers, but AI is going to really change this business. And that's why we are investing even in our new strategic plan, there is a high investment in AI in this business. Even if we compare it with other big businesses that we have, it's sometimes with some of them, it's even in parallel.

So we think that we really -- we would have a lot of efficiencies and a lot of different type of providing service for the future. So it's a huge opportunity for this business, and we will see how this evolves. But just for your noise in our new strategic plan, we are planning to double our sales in this business and also the margin.

We have no further questions at this time. So I hand back for you for closing remarks.

Thank you very much for attending this presentation. If you need further information, please contact our Investor Relations department, who is open to help you at any time. Have a nice day.

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you, and have a good rest of your day.

So good morning. Hello, everyone. It's a pleasure to have you all here. My name is Juan Ignacio Galleano. I'm the Investor Relations Director at Prosegur. The purpose of this event is basically to deep dive into the business strategy objectives and the financial figures and the economics of the business, and it will be structured as follows: First, Jaime, CEO of Prosegur Alarms and President of MPA, will walk you through his presentation, followed by Maite, who will give you a detail and deep dive on the figures and the financial information of the business. And then we will have the Q&A session. So please hold on to your questions until we get there. And I will give you further instructions later on for those -- especially for those who are online.

So now without further ado, I leave you with Jaime. Jaime, the floor is yours.

So good morning, everyone, and welcome to Prosegur Alarms Investor Day. As Juan Ignacio was saying, the purpose of today's session is to run you through our strategy and also the financials in a moment in which the industry is becoming very hot. I think you all know that our friends and competitors went public a few weeks ago. So hopefully, we'll get some time to share with you what we're doing and explain to you our strategy and where we want to get. So first of all, I'm going to share with you some details about our market and how this industry works. Hopefully, this will help you understand a bit better what we're trying to do.

This industry, the alarms industrial market is a very peculiar one because it is very push-driven in a sense that there is a strong correlation between how much we invest in advertising, marketing and go-to-market and the growth potential and the penetration of each of our markets. So there is sort of a virtuous circle in which the more players invest in the country to get new customers, the higher the growth potential of that market we can see. So in this slide, you see that everything starts by some customers realizing that they might have a need for security and peace of mind. Some customers don't even know that, that's a need they have. So that's where our marketing and brand awareness investment starts. So it is very important for us to start investing more and more in marketing in a smart way. We'll get to those details later. But once customers realize that they have a need, then the purchasing process starts. And that's where we need to put our commercial engine in place to make sure that we capture as much as that growth as possible.

If we are successful and once we are successful, then we get new clients. That means that we get more visibility on the street. You see more of our signs on the street and houses and businesses. And that also helps us accelerate further the growth and the need for our products and services. So you will have listened to advertisement and commercials telling you how your neighbor has an alarm and you don't have an alarm. So that sort of triggers the need for you to have an alarm as well and feel safer. So you have also the same security level as anyone else has in the market. So that, again, brings new clients and that brings new marketing potential and investment. So you sort of feed that virtuous circle. And we've seen again in all of our markets that once we do that well, then the level of the penetration and the growth starts growing and growing and accelerating.

So if we now look at our markets specifically, we have a chart here where you can see the penetration of our markets. And that's why we feel that we have a tremendous opportunity in front of us at Prosegur because in all of our markets, we see a lot of potential to increase penetration. Even in Spain, where we've grown the penetration in the last 5 to 10 years, thanks to our partnership with Telefonica as well, we're still halfway through the penetration levels that we see in other more developed markets like the U.S. We don't have the Nordics on this slide, but they would also have higher penetration levels. So we trust that we can actually double the penetration, which would mean that we could have tremendous growth potential for us and for the market as well. So we're not entering as other industries are into a price war, sorry. But we have growth potential for all the players. And actually, we've become very good at seizing higher market share, higher new market share than our competitors.

If we look at other regions like Portugal or even Latin America, the opportunity is even bigger. So we have, again, a very good position to capture that growth and to keep growing the business. Also because on this slide, you can see our market positioning, and this is also very relevant. Coming back to my point before, the more visible you are and the higher awareness of our brand we get, the easier for us is to keep growing. So being #1 or #2 in mainly all of our markets, except for Chile, where we're getting to #2 now, I think helps us a lot and gives us and puts us in the best position to keep growing because customers consider us when they look for an alarm. And since we trust that we believe that many, many more customers are going to look for an alarm. There are not too many players that we can actually consider other than the first 2, 3 players in each of the markets. All the others are also important. This is a very fragmented industry. But actually, 80%, give or take, of new customers actually go to #1 and #2 players. So actually, we're very well positioned to capture that growth.

This was a little flavor about our market. Let me go now through our strategy. And actually, we're going to run you through all the end-to-end value chain of our business, and I'm going to explain to you now what we're doing and what our plans are for each of those verticals of our value chain. But before we start, I think one very relevant point that I wanted to share with you today is that this is a finance-driven model. So there are 2 things that I'm going to talk a lot about today.

One is the obsession we have for returns. And second is the obsession we have for the customer experience. So those are the two main things that really keep me awake at night if I had to say true only. Finance and returns is because, as you very well know, this is a business in which we need to make quite a large upfront investment. So that means that acquiring new customers -- there are a lot of new customers, as I said, but acquiring them means that we need to invest in marketing and many other things that I'll go through now. But this is a large upfront investment, which we're happy to make because returns will come during the next years if we manage to keep customers for a long period of time.

And if we manage to enlarge and expand margins and make customers happy, so they're happy to keep paying this service for us for a long period of time. So those are the main two things that are relevant to us at Prosegur Alarms. And everything we do, we measure, we look at the returns call it NPV, call it payback, call it return, call it whatever financial metric you wish, but we look at them not only for acquisition, but for any other project that we do. And actually, when we look at the acquisition strategy, which is actually one of our main investments in terms of CapEx, in terms of SAC subscriber acquisition cost, we look at that by channel, by customer, by offer, by anything you can think about because on this business, the average doesn't tell you much. It's much more relevant to actually look at anything you do, any new customers you acquire. If you acquire a new customer and that customer leaves within the first 2 years, you're actually not making a good return.

So you need to look at each of your customers to make sure that all of them, not only on average, but all of them or most of them stay with us for a long period of time, and we get high margins. So that was something that I wanted to share with you because actually, that's probably something that we've slightly evolved from the last couple of years strategy, which will come on the coming slides, and we'll let you know what we're doing there. But that's something that I personally believe that we need to keep working on, and I'm very obsessed on the return and the financials.

If I go to the strategy now, you can see here, again, the whole end-to-end value chain, starting by the product that we define and we keep investing on new products and developing our road map. Then once you have the product, you need to take it to the market. So marketing comes and then commercial strategy. And then once you have the client, what's the most important thing? You need to make it happy. You need to make them happy. You need to improve the customer experience. So again, that's the second thing I said that is one of our obsessions.

And then, of course, to make customers happy and to be more efficient, you need to be operationally more and more efficient and you need to take advantage and make the most of all new technologies that you can apply to our business operationally wise. On this slide, you can see that each of those parts of our value chain, we measure again with financial and operational KPIs. You call them churn. We want to retain customers as long as possible. You call it margin in terms of service margin or EBITDA margin. You want to be efficient in the way that you expand margins through time. And for that, we need to make customers happy. So we need to offer them more products and services, upselling and those things. So you increase the ARPU, the average revenue per user. And we are working very hard to keep costs under control. So we, as I said, expand margins year-over-year. And you'll see later when Maite shares with us the financials that, that's one of the things that we are planning to do in the coming years in our numbers.

And also subscriber acquisition cost, even if this is an industry that we like it or not, you need to invest upfront, and we've invested upfront, and we are ready to invest upfront. We need to keep SAC subscriber acquisition cost under control, and we need to make sure that the less we invest upfront, of course, the easier it gets to make a return on that money that we invest. So we're also considering and we'll talk about some initiatives later. We're also considering how to do that and how to optimize our upfront investment. And everything we do, we do it to grow our customer base. So growing in terms of new clients, but growing in terms of free cash flow optimization. So those 2 things are important. It's not only new clients that we measure, which we value a lot, and we track that a lot, and we have plans to keep growing number of customers, but we also need to look at the free cash flow, the cash flow optimization and growth.

So let me now go one by one. If we start by the product, everything starts by having a robust and strong and innovative product in this industry as in any other. This industry has changed a lot in the last few years since video becomes more and more relevant, since artificial intelligence becomes more relevant and something that we have in our day-to-day in our homes and in our businesses. And since many other things are progressing and changing so rapidly, we need to keep investing heavily on new products, and we need to make sure that we have actually the best product in the market.

So in order to do that, there are a few things that we look at. First is customer usability. And in order to improve that, we have 2 things that we want to do and we've been working on. One is the application, the app that we offer our customers to get connected to our service. It's called Smart. And we're investing quite a lot of money and efforts on having the best-in-class app for our customers, not only because the experience is better, but also because it's actually the main tangible asset that we have for our customers to realize how good our service is. So they can interact with their service and products at home through their mobiles anywhere they are, and they can do many other things through the app.

So for example, second thing is the self-service that they can get through the app. So even if we have all the means to work for our clients remotely from our call center, monitoring centers and all those things, we trust and we believe, and we've experienced that customers value a lot what they can do on their own. So what they can actually -- if they want to change the password for entering into the house or the code or whatever, if they can do it on their own and they don't need to call our call center, it's good for the customers because the experience is better. It's good for us because we don't need to invest in getting more and more calls in our call center as long as we keep growing our customer base, for example. And many other things that customers can do through the app and other self-service initiatives are very relevant in the way that we think about our road map evolution.

And the second thing, of course, is innovation. We need to keep innovating in the core of the product, meaning we want to make our alarm more and more secure. And that means that we're going to add more cameras, sensors, detectors and many other devices to make homes and businesses safer and safer. And we keep thinking on what else can we do to add to our core product to provide the best service and make everything we protect safer. Second, as I was saying, is video. Video, not only for businesses, it started being very valued by businesses in the beginning. But nowadays, video is very relevant for homes as well and it's a core part of our service. So we offer all our clients and customers video capabilities so they can look at what's going on, on their houses, and we can start doing things with artificial intelligence to improve the service that we provide video-based, meaning pets, we have solutions that help us make our customers' lives easier if they have pets.

We can recognize people, faces, objects, and we can make our service more efficient by identifying that certain things are probably not real alarms or dangers. And some of the things because we can recognize a burglar or a thief trying to enter into a house, we know that, that's a real alarm and that we need to act much faster. And artificial intelligence is only starting now. So we'll see more and more developments on that area, and I'll let you know in a minute how we are planning to do that.

And of course, future launches. So not everything is covered by our core system. We have many other initiatives outside of the home, beyond the home. And we have also smart home initiatives that we're about to launch. You'll see and hear some more in the coming quarter or 2 quarters because we're planning to launch new value propositions to the market in 2026, and that keeps going. We still believe that the core of our business is the security part of the alarm, but there are many other things that can be done. The only thing that -- and just to be clear and we can discuss in the Q&A later, the only thing is that since we see such a such an interesting potential, growth potential in the core business. We're not too much obsessed with entering into adjacent other things as of today because we still believe that customers need to first cover their basic needs security-wise.

So this is the road map strategy that we will follow in the coming 2 to 4 years. And how are we planning to do that? We had a very interesting debate in the last couple of years regarding build versus buy. So everything that we are developing and that we have on our road map, we could do it ourselves or we could do it through partners. And on this slide, you see how others are doing this. So the small players that don't have enough scale or investment capacity, they can only take off-the-shelf products from other providers, from third parties and integrate them with no change to those, no special benefits, no differentiation. On the other hand, you see the largest players of the industry who a few years ago decided to build everything in-house, which probably 5 years ago was a good decision, but we trust, and that's why we've come to this own strategy. We believe that a combination of build and buy, a hybrid strategy here is what will make us unique and what will give us the opportunity to have the best product in the industry in the coming years.

So we are partnering with some players in the industry. We have some here today with us. So thanks for joining. We're partnering with 2 specific companies who are best-in-class global leaders in what we want to do. We're not a hardware company. So that's not what we want to do. We don't want to become a hardware company. So we don't want to create and invest in capacities to become a hardware company. That's a different business. We're a service company. So we're not investing in hardware. And we trust that we reached an agreement with the best-in-class global leader for video as well because since I said before, video is becoming more and more important and artificial intelligence is becoming more and more relevant. And there are players in the industry, global industry, which are bigger and probably better than any security player can be on those things. So we, again, reached an agreement for the coming years with 2 specific partners to work together on those 2 things.

And what we are going to keep, which is important is that we are going to keep our technology stack, we're going to control our technology stack end-to-end. So we're going to decide how we integrate things, what other things we have in our tech stack. And we're going to integrate these things, these parts of the end-to-end value chain into our tech stack. But we're not losing control of that, which was one of the things that obsessed us in the negotiations and in the debate that we had 2 years ago. And we're also keeping some sort of flexibility to adapt what we need to adapt and keep what we need to keep. So those things were very important for us to keep. And on top of those things, we're getting new things, which is why we believe that this is a winning strategy. So we're getting best-in-class solutions and innovation capacity. We're working with people who invest millions and millions more than all other security industry players. So we can get the benefit from those things.

And we are getting some period of time for exclusivity. So if we want to become different, we cannot work with someone who is going to actually sell the same thing to all other players in the industry. So we signed an agreement in which we get around 2 years of exclusivity, which we trust is going to make us different. And the last thing that we're getting, which was not only what we were looking for, but it's also important for our business is that we're getting savings. So we're getting around 20% savings in year 4 and 5 of this agreement compared to what we were paying before this agreement. So we're getting the best of both worlds, the innovation and the cost benefits.

So once we have the product developed, we need to go to market. And first thing we need to do in the market is we need to invest in marketing, as we were saying, right? So on this slide, you see 3 things that we are planning to do. We already started doing those, and we will keep doing those in the coming years. One is that we're going to keep investing in branding. We keep investing in branding and growing double digit our marketing investment because we trust that, that's the way to capture and seize that growth that we discussed on the first slide. Second thing is that we want to become more and more efficient funnel-wise, meaning that conversion ratios are very important. Actually, once you get a new lead coming from your brand investment, the conversion ratio is 60%, higher than any other lead that you could get through other means. So brand investment, second, you need to optimize the funnel. Not only the brand investment, but also anything you do in the funnel. So for example, we've been experiencing in some of our markets, some contactability and reachability issues with some of our clients in the industry. You know that regulation is changing. So customers are not always as easy to contact as they were in the past. And we're working hard on those things.

So for example, we're incorporating new channels to do that, WhatsApp and other remote channels to make sure that we don't lose any lead because to us, that's something very important to, again, be very efficient and capture all that growth. And the third thing we're doing from a marketing perspective, which is or might be something that we are evolving compared to last strategic plan of Prosegur Alarms is that we are very obsessed now to capture high-value customers. I said before in the first slide that the market is growing and that this is a push market. If you push too hard, it might be counterproductive. It might mean that you get customers who are not willing to be with you for a long period of time.

So we need to be very, very precise in how you market these services and how you target new clients to get customers who are willing to stay with you for a long period of time. And that will, for sure, reduce the churn. Of course, that will also mean that you will get customers who are willing to pay more, get more services, more cross-selling, more value-added services, and we're also working on that. But sign-up are probably one of the things that we want to work on in the last few months to optimize that. In the past years, we were probably kickstarting the commercial engine. Now we need to make sure that, that commercial engine and our sales force targets the right customers, so we get the best returns possible.

In terms of value proposition, if we keep talking about the marketing strategy, we want to improve our value prop to the market. So we're working on a few things that are also very relevant and linked to what I described before when we were trying to get the best customers possible. So first thing that we're working on is we're simplifying our value proposition to the market. We were coming from an industry and ourselves as part of the industry, we were selling with quite a complex value proposition in the past. I think Movistar Prosegur Alarmas started this journey 2, 3 years ago, simplifying the offer, making it more transparent to the customer and having less offers that we can sell to the customers, but best offers that we can sell to each of our customer target. And we keep working on that to simplify our offer and have the best offer possible.

On top of that, we are working on increasing the value adds that we could bring to the market. So our response we call it Acuda service is becoming more and more popular and more and more relevant, but many other things that we want to do to improve our value-added services. As I said before, differentiation is key in this market. So even if it's very fragmented and we normally compete against 1 or 2 other players in the market, differentiating from our other competitors in the market is very relevant for us. So that's why we keep also innovating in our products and services. So we have, for example, on this slide, we see the ContiGo, which is another service or product that we offer to our customers. So they feel safe when -- beyond the home, when they're not at home and they could activate a button. So they can actually call for help if they have an issue outside of the home.

And the last 2 things that we have on this slide is revenue expansion and adjacent developments. As I said before, we are very lucky because this industry is growing, and we have a lot of potential in front of us. But we don't want to neglect that there are other opportunities that we're working on and that we will include to our value proposition in the next strategic plan. Right. So we discussed about the product. We discussed about the marketing strategy, and now we need to go to the market and sell. So as I was saying before, the last strategic plan for Prosegur Alarms was about starting the commercial engine. This is something that Movistar Prosegur Alarmas did probably in 2021, '22. And at the rest of the group, we've done that in the last couple of years. And we were very successful selling more and more. You will see the numbers later, but we actually double and triple depending on the market, the number of new ads that we got in the last couple of years.

Having said that, it was not only about selling more, it was also about optimizing the channel mix. So in Movistar Prosegur Alarmas, we had Telefonica, which was a new channel for the business and was very successful. So what we did in the rest of the world is that we looked for other partners to do the same. So we looked for what we call third parties, dealers. And depending on the market, we have different strategies and different partners. But the purpose of that was to get new channels to compensate -- to optimize our channel mix to be able to reach customers that we would not be able to reach otherwise with our own channels because you know that our main own channel was door-to-door, and that's limited. That's not as scalable as some of the other things that we are doing now.

And also, these new channels are variable in the sense that we pay commissions when they sell. So that gives us the flexibility to do more or less or reduce the risk that we run when we want to go to a new market or a new city or a new branch. So we can do it with other partners who already have the presence there. And if they sell, we're lucky, we get more customers and we operate them. And if they don't manage to sell, we lose nothing. So that's something that we've been doing in the last 2 years, starting to look into these other channels.

And as you can see here, this is something that we want to keep in the coming years as well. It's working very well. It has a lower SAC. It's variable. We get to untapped markets for us, and that's something that we will keep doing in the coming years. And the other thing that we've been working on, and I think we've been already quite successful in some of our markets and not in all of them, and that's something that we need to keep working on in the next strategic plan, but it is our telesales own platform. So I remember when I joined Prosegur a few years ago, no one was selling an alarm remotely. And I actually asked the team at the time, can we do it online? I think doing that end-to-end online is very difficult. But I think doing that, starting with an online strategy with marketing investments, digital investments, but -- and then closing the sell through a call that we've proved that is possible, not only possible, but it's also very efficient because it's much cheaper. And actually, we have a methodology now that allows us to know exactly how many new leads we need to give to our door-to-door sales teams, so they have enough opportunities to work on, but we make them work on their own opportunities as well. So that's something that it is very important for us because it's not only the company providing our door-to-door sales with opportunities, it's also the sales force looking for their own opportunities and bringing more and more clients. And part of the other leads, we close them through telephone.

Sometimes customers don't want to buy through telephone. But when they do and when we can do it, I think this is something that is very relevant for us to keep SAC under control and be able to sell more with less costs. And I said at the beginning of my presentation that there were 2 things that were very important. One was the return and the financial metrics that we track and we follow. The other one was the customer experience. To us, this is a real obsession. And here, we have the end-to-end customer journey. And on each touch point, we have plans to enhance, improve the customer experience because that's the main driver to make customers stay with us longer and be happier and be ready to acquire new products and services from us, and that will have a positive impact in our margin. And this is same as with marketing. This is a virtuous circle that we truly believe that is going to help us get more resources to keep investing on our own business.

So from the moment in which we acquire new customers to the moment in which we serve the customer and actually, up to the moment in which the customer leaves, we have a clear plan strategy with metrics, KPIs to see how we improve and affect the customer experience. So for example, in the subscription, one of our mantras is that we do what we say, and we are transparent. Some of our competitors actually are very closed in the way that they show the offer. They don't publish prices. They don't say what customers are going to pay, then they send someone to the customer at home and then they finish the offer and sign the contract on that moment. And actually, even after that moment, sometimes customer realized that they are paying something different to what they thought they were going to pay. This is something that we never do. We are very transparent with our customers, and that's something that we want to keep doing because we believe that even if we probably miss 1 or 2 sales, the ones we get are going to stay with us for a long period of time and are going to be happy customers.

Then installation. So once you sell the customer you need to install in their homes. So it is very important to do it right and to do it at the first time. So you don't need to keep going once and again to customers' houses and homes or businesses to finalize the installation because that leaves customers with a very bad customer experience feeling. So we are very obsessed and we track the first visit work that we do. So we don't need to come back to the customer home again.

In terms of billing, this is very key as well because it is a critical moment for the potential churn that you can get. If you do the billing wrong or if you collect wrong, I think this is one of the things that of course, customers do not tolerate. So it is very important that you do that correctly. And to be very frank and humble, in the last 2 to 3 years, we had some issues there because we changed our CRM, and I'll go to those details later, but that had an impact. Luckily enough, I think we can say that, that's already passed and that we now have a solution that works perfectly fine, and that's going to have a positive impact in the future. So hopefully, numbers in the future will not suffer as we did somehow suffer in the past. And then we can keep going through the -- again, the customer value chain. So in terms of usage, maintenance, you don't go and visit twice to the customer to do the same thing to change the batteries or to do those things. You need to do it once and you need to do it right. Customer service. So when you call to the customer center -- to the call center, you need to make sure that all calls are solved in the first call. So first call resolution is critical and many of the things that we're doing.

And in terms of activation, you also get the benefit to decide what channel you use to activate your customers. So many things, as you can see, to impact the customer experience. Since this is so important, we have a lot of initiatives, and we have a lot of KPIs that we track and follow and monitor. And at the right-hand side of the page, you can see the results of that strategy and of that efforts that we've been putting. So we are best-in-class. We're #1 in Trustpilot and in Google My Business, which are two of the main platforms to assess the customer experience and what customers can tell you and can tell everybody what they think about your business. So we've been working hard to become #1 on these parameters. And I think we're very successful. We've been very successful and we'll keep improving in the coming months actually. I'll leave you now with a video. These are the results from last month. And actually, in the video, you can see that we had even a lower ranking. We had 4.8 of 7, and that was like 3 or 4 months ago. So we keep improving month by month. And I invite you to follow those 2 platforms because we will keep improving. I'll leave you now with the video.

[Presentation]

So being customer experience one of our main pillars for our strategy and main competitive advantage and differentiation, that's one thing that we keep working on. And as you can see on the video, we actually use artificial intelligence to assess everything we do with the client and to improve there. If we go and talk now a little bit about our operation strategy, the last couple of years were years in which, as I was mentioning before, we wanted to fix the basics and tidy up the house a little bit. So we had to change our CRM. We had a very old one, which was becoming obsolete, and we changed the CRM in all 9 countries. So that was quite a project, which at some point had some impact on, unfortunately, customer experience and collections and billing, and we suffered that a little bit in all countries. But during the last year, we managed to keep everything under control. We have -- all new clients are coming now with a consistent database, and we don't have issues between what we were expecting to build a customer and what the customer was built and what he had on the contract that he had signed. So that was a very important thing.

The other things that we did, as I said before, is that we worked on the smart application to evolve the things that we can do through the Smart, through the app. And also one very important thing that was probably more about fixing the basics and tidying up the house was that we moved to the cloud, our monitoring centers and the Smart application as well. So we renew all the technology and infrastructure to make ourselves scalable and capable of acquiring more and more customers. We were reaching a limit in which we were almost not able to grow further. And with these few things that we did, we're ready to address and face the coming strategic plan with many more guarantees that will be successful. So what do we want to do now? So we didn't really transform our operation as much as we wanted in the last -- in the previous strategic plan since we were doing those other things. But now we want to transform the operation. We want to use more AI in the operation, as we saw in the video, more examples of that, and I'll tell you about that on the next slide.

We want to make sure that the technical team, the installation, the call center, monitoring center is transformed and that we incorporate new processes, we review all the processes with new technologies, new systems, the CRM and many other things that we're changing to make sure that we transform the experience of our customers. We want to bring new channels on board, WhatsApp, as I said, remote channels and some other things to improve our operation. We're working on infrastructure unification. So that means that we are going to probably consolidate a few of the things that we do in different countries in fewer countries, especially in Latin America, where we don't need to have so many operations divided by -- divided or scatter in all those countries. So we'll consolidate some of those operations in fewer countries with some projects that we have in mind.

Billing and collection reengineering, we talk about that a little bit, and that's critical for the churn reduction and for making our customers happier. That was something that did not work as well in the past and we already fixed the main problems, but we want to transform and evolve that thing because this is very important, and that's one of the main touch points in which you need to be 10 out of 10 with your customers, and that we will have in mind. Value selling operation, we want to, as I was saying before, sell value. We want to have all the operation systems, processes to be able to attack the market in the smartest way possible.

So those things we'll see in the numbers that Maite will share with you in a minute because those will mean that we will have happier customers paying a bit more, but especially cost control and efficiency and customer experience. And here, last but probably not least, we have a few examples of projects we're working on AI related. This attacks the whole end-to-end value chain of our business. So you can see here a few examples of our go-to-market and selling capabilities and also some projects about our operations. So the way we work with AI is very specific in this company. First of all, we roll out AI tools to all our employees so they can work in their own projects and they can -- we call it, do internal tests. So they bring new ideas to the company to things that they believe we can improve. If those things and ideas are things that we can invest on and that have a business case and a real impact on KPIs, we start doing proof of concepts.

And if the proof of concept works well, then it's where the real investment and the high investment comes to bring real product to the market, to the operation. And then we industrialize and then we do projects to make that available not only to that specific team, but for all countries in all teams that we have in which we operate. And here, you have a few examples regarding both the sales and the operations teams and some things that were already discussed in the video and some of the things that we're working on to reduce churn, to increase the sales, to reduce the cost, to improve the customer experience and so on and so forth.

And with this, I'll pass to Maite to share with you the financials.

Thank you very much, Jaime. So we already have been analyzing the market, the strategy, and let's now go to analyze the financial figures. But first of all, I'm going to explain you 4 different concepts because I think that it's going to be quite useful to understand the next numbers. The first one is -- I'm going to speak about the service cash flow. The second one is going to be about the replacement cash flow. The third one about the recurring cash flow and the fourth one about the growth cash flow. As you could see, I am all the time speaking about cash flow. Why? Because as Jaime mentioned, this is a finance-driven business. And internally, we manage in terms of cash flow, no in terms of P&L as we do with the rest of the businesses.

So in this regard, if we start with the first concept, the service cash flow, I want to explain how it's calculated. It's quite easy. Just we have to take the service margin, and we have to multiply by 12x, the 12 months that has a month. If you want to have the full service cash flow, you will just have to multiply by the total client base. A lot of you, you already have been speaking with me about the EBITDA per SAC, the EBITDA per SAC. The service margin is the EBITDA per SAC. Internally, we always speak about the EBITDA. We include the depreciation of the CapEx. Today, we will see that I'm going to explain to you also, we are going to speak about the EBITDA per SAC. I will provide you also that percentage. So if we move now to the replacement cash flow, the replacement cash flow is calculated just by multiplying the churn rate and the SAC, the subscribing acquisition cost, the cost that we need to incur to acquire a new client.

When we multiply this churn rate by the SAC, what we obtain is the cash flow that we need to incur to maintain the same client base that we currently have. So from the service cash flow, if we subtract the replacement cash flow, what we are going to obtain is the recurrent cash flow. The recurrent cash flow is the cash flow that we use for the rest of the things for growing, for paying taxes, for paying CapEx, for paying others interest if we have a debt. The recurring cash flow, it's also important, and I'm going to move to the next concept, the growing cash flow because there is a ratio that I would like to highlight because it's important to understand the debt in this business. As Jaime has mentioned, for growing, we need -- we have a lot of SAG, we have a lot of acquisition cost. We also have a lot of publicity to invest. So this what makes is it increased our debt. So when we calculate, when we divide the growth cash flow divided by the recurrent cash flow, if the number that we obtain is higher than 100% means that what we are doing is that we are taking on into debt to growth.

the recurrent cash flow, if the number that we obtain is higher than 100% means that what we are doing is that we are taking on into debt to growth. If it's lower, means that we are not going in debt to growth. So here, this is key because we have to be controlling the debt all the time. Why? Because if not, the recurring cash flow instead of for growing, it's going to be dedicated to pay interest. So that's why even some of our competitors, they need to do specific financial things so that they could reduce their debt because if not, the debt is going to kill you.

So now let's move now to the numbers. I'm going to start with MPA. In this regard, I'm going to speak about the evolution across the different years because here, you can really analyze how the strategy has a real impact in the numbers. I'm going to start from the first phase. I have split it in 3 different phases.

The first one started when we did -- when we signed up the joint venture with Telefonica in February 2020. If you could see in 3 years from 2020 to 2022, we more than doubled the number of clients that we had. This was mainly because we did a very aggressive promotions, aggressive commercial discounts that -- what it made was that -- just not also it doubled the number of clients that we had, but it also increased a lot the churn rate, achieving 14.1%, the highest we had ever had. And we also increased -- it also made us increase our debt.

And why do we -- why did we did this strategy? It was mainly because we were launching our new brand, Movistar Prosegur Alarmas. So we just keep pushing the market so that all Spain could know our new brand, Movistar Prosegur Alarmas. And in 2023, we started changing our strategy. Here, we were more focused on stabilizing the main indicators. For example, as you could see, in 3 years' time, we reduced our churn rate till having the churn rate that we have now 8.9%. Even we improved our ARPU. As you could see, this is the unit recurring cash flow. The ARPU increased in EUR 83 in 4 years. You have also to divide it by 12. But look what happened at the beginning, the CAGR even was negative in the recurring unit cash flow. So here, you can really, really appreciate how the strategy that we were dealing with has a direct reflection -- you can directly be reflected in numbers.

If we move now to the -- to where we are now and to our new strategic plan, now we are going to be focused on growing. We will continue growing 8% CAGR, higher than how the market is going to grow. We will continue focus on our debt. And now the debt that we have, the net debt-EBITDA ratio that we have is 3.8x in NPA. In the first Q of 2025 and 4Q 2025, it has been the first time where we have generated positive cash flow. So if I go back to what I was mentioning about the ratio of growth cash flow divided by the recurring cash flow, till the third Q of 2025, that ratio was higher than 100%. In 2024, it was around 138%. What means that we were going into debt to grow.

But now that has changed. Our strategy has changed in for 2025 till -- for this next strategic plan. Our focus is going to be always lower to 2.5x so that in 2029, we could achieve 2.3x. So you could say if your limit is 2.5x and you are going to achieve 2.3x, what are you going to do with the remaining cash flow? So we will see. The Board will decide if it's going to be just for full growth for our shareholders' dividend or whatever.

If I move into the service margin, here, we are going to achieve a 63% service margin. This one was the one that I was previously mentioned. The EBITDA pre-SAC is the 63%. If we exclude the depreciation coming from the CapEx, the figure should be 64%, 1% more. If we move now to the rest of the countries to the -- what we call it rest of the world, or ROW. Here, I am not going to explain the evolution of the -- across the years, mainly because here, what you are observing is the consolidated figures of 7 different countries. And each country has different strategy in a different moment. So it has not too much sense to analyze it globally.

But I'm going to -- so I'm going just to be more focused on the last part on the Phase 3, where -- which is our strategic plan. Here, we will continue growing. We are going to grow in a CAGR of 6%. We will try to achieve in 2030, 600,000 client portfolio. And we will continue growing also in the recurrent cash flow in a CAGR of 11%. Here, as you know, this -- the rest of the world countries, they do not have debt. They are autonomous in the cash flow that they generate. The cash flow that they have is the cash flow that they can use for growing. The group is not going to provide them more cash flow for growing, just if they grow inorganically, not organically. So here, that's why they can't afford growing super fast because for that, you really need a lot of debt and the group is not going to provide it.

So the debt that they have is zero. If we move into the margin, the service margin that we are going to achieve in 2029 is 51%. This one, again, is the EBITDA pre-SAC. If we go to the EBITDA pre-SAC without excluding the depreciation of the CapEx, it's 4% higher. We will be in 54%. So here, I would like just to highlight also that our focus is going to grow. It's going to continue -- we will continue growing, but always controlling the type of the growth. We wanted to growth with a very high churn rate so that our debt could not rise.

And this is all from my side. I will turn the presentation back to our Alarms CEO, [indiscernible], so that he could provide you the financial -- the final takeaways.

Thank you, Maite. So basically, those are the numbers, which, as you saw, maintain the focus on growth, but on profitable growth and on profitability and with a very tight control of our cash flow and debt levels.

One of the important thing that Maite passed very quickly through is that with those churn levels to -- if we manage to reduce the churn levels that we saw in the previous slide, by reducing that churn to get to the same level of customers of total customer base, you need to reinvest less, as Maite said in the beginning, in replacing the customers that you lost. So that saves a lot of money for the group. So that reduces the debt level, and that also gives us more leeway to keep growing and to look for those profitable customers that we want to look for.

So final remarks from my side. As we discussed today, we want to have the best-in-class product. And for that, we have a clear road map, and we have the best partners in our hybrid strategy to build those products. We want to improve and invest in our go-to-market strategy. That means that marketing is going to become even more important in the coming years in terms of brand awareness, investment and in terms of helping us define the best high-value offer that we want to bring to the market.

We want to, as I said, improve the customer experience. So that to us is absolutely critical, and that's why we have all those KPIs and metrics that we track very closely to improve month after month. And with these numbers, I think since Maite talked about MPA first, and then rest of the world, just to aggregate the numbers, we'll become a 1.5 million company in 2030. We are today 1 million company, as you know, we announced that a few months ago, and we're planning to increase by 50% by 2030, the number of customers that we serve. With, as I said, I might remark it with a lot of focus on profitability on each of the customers that we acquire and return, and of course, on debt control, so we become self-sustainable in terms of growth and in terms of what we want to invest in this business, which is a very interesting one.

In terms of margins evolution, following that strategy of improving customer experience and improving ARPU. At the same time, as we control our costs. We are enhancing and improving our margins up to 63%, which is 64% if we look at excluding depreciation, and 51%, which would be 54%, excluding depreciation as well. And that's on average, an improvement of around 3-point-something basic points end-to-end, which is something that, again, is going to leave us lots of cash flow, and debt control and money that we can use to keep investing on the business. And the last figure, it could not be other than the free cash flow that we are planning to generate, the cash flow that we're planning to generate. If we look at that in terms of recurring cash flow, meaning that if we stopped the growth machine, we would be generating almost EUR 250 million by 2030 -- 2029, excuse me.

So that's the conclusion of the presentation. I think now I'll pass you to Juan Ignacio, which will run the Q&A.

Thank you, Jaime. So now it's the Q&A session. We are running a little bit late, but we're going to try to answer all the questions that you may have. [Operator Instructions]. So first question here.

Sorry. Before I'm going to introduce Diego. Diego is the CEO of MPA. So every question related to MPA or the Spanish business, he will be -- his demand to answer them. So that's it. Now yes, please.

[indiscernible]. I have 3 questions. The first one is for Maite. In the Analyst Day of last year, you pay a careful attention on M&A opportunities, even highlighting a firepower for them. And in this Analyst Day, you didn't pay such closer attention. So my question is, do you -- have you reconsidering the inorganic growth landscape of opportunity, taking into consideration the change in the CEO as well? I don't know if it is related or not. What are your views on this regard?

Second, obviously, is Telefonica after the meaningful changes in the company's strategy, including the CFO this morning. So how do you foresee your relationship with the company and to which extent keeping a stake of 0.86% in the company is key in order to have a clear understanding of your operations?

And third is also an obvious question, taking the IPO of Verisure and the KPIs that you presented today, what do you think will be a fair discount, if any, versus them in order to consider a potential disposal in the business?

Thank you, [indiscernible]. In terms of M&A, I know that in the previous Analyst Day that we did 1 or 2 years ago, we spoke about Italy, we spoke about Ecuador, we spoke about Germany, and we spoke about Mexico. Now we are -- with the new CEO, we are still open to M&A. We are already -- we are analyzing some of those countries that I already mentioned. Some of them, we already forgot about them like Ecuador or Mexico. But others, we are working on that. Even we are working in some partnerships in other countries that even we didn't mention. So we will see in the next results presentation, maybe not in the full year's one, but maybe in the first Q or second Q, we could provide more information in that regard. But as I always say, the M&A, you never know. Maybe you think that you are going to close it today and tomorrow, you're not finally signing.

In terms of Telefonica, I -- we are aware of all those changes. We went to the Capital Market Day of Telefonica a few weeks ago. And it is true that the yield that Telefonica is providing now is much lower than the yield that we used to have. Now I think that it's around 3-point-something percent and it used to be close to 7%. So here, I am going to speak as a shareholder of Telefonica because in terms of how we work between -- in MPA between Telefonica and Prosegur is the ideal relationship, because we really have a very, very good relationship, even maybe Diego later could explain it or go further in that regard.

But in terms of shareholders, we will -- we really do not want to have Telefonica shares. Our goal, we have a higher yield in our businesses. So it has no sense having those shares. But we will have to see the moment. Why? Because now the share price of Telefonica, I have it here, is like EUR 3.71 -- EUR 3.489, and we bought it at EUR 5.6. So we do not want to lose a very big amount. So we will see finally what we are going to do. But yes, it's -- we are not going to keep it forever.

In terms of IPO of Verisure and what they have the multiple that they have paid for Verisure, I think that even with the figures that I was showing late before, here, we have like 2 different scenarios. We have South America and we have Europe. I think that Europe, Spain and Portugal, they are the same type of quality of customer portfolio. So I think that we could be very close to the multiples that they have.

It is true that South America is different, mainly because we have countries with a very, very small number of subscribers. So the scalability is very difficult to achieve it, the one that Verisure or other competitors have. So I think that we -- you cannot compare exactly the same because it's not the same. So that's why even our EBITDA pre-SAC, or our service margin is going to be of 55% when in -- for example, in Spain, we are going to have a 64%. So it's just because they are completely different markets, but not because of the possibilities or the penetration capacity that we have. It's just because we do not have that scalability. We will work on that, and we will work also in some operative efficiencies so that we could achieve a better margin, but there is still a lot of work to be done there.

But I think that Europe, as I mentioned in the last results presentation, I think that we really have -- we could be on the similar prices as what they have received in the IPO.

Juan Ros from ODDO BHF. I was just looking at last year's presentation and looking at the targets you provided for MPA and from ROW. And I think MPA targets, they seem like pretty much the continuation you provided until '27. So 2030 targets, they seem in line which you were providing before, if anything, maybe slightly more ambitious. But then the rest of the world targets, they seem a bit off. Maybe you're pushing back 1 or 2 years the delivery you were expecting a year ago.

So my question is, what are you observing in those regions? What's the reason for pushing slightly backwards those targets?

I'm going to answer because I was the only one in the Analyst Day. So here, it is true that in MPA, it's even slightly better. So it's even better than what we released in the Analyst Day. The rest of the world geographies, they are lower, mainly because we have changed our strategy. We do not want to grow at any price. We want to grow with very good quality of clients. We want to grow -- I don't know if you could remember when I have been speaking the NPA evolution across the years that at the beginning, when you started doing a lot of promotions, discounts and things like that, your churn rate starts increasing, but also your debt.

So what we need to do is to fix the basis that is what we have been doing during 2025, as Jaime was mentioning with the changes in our CRM, in our billing process and so on. And now what we have to do is we have to continue growing, but growing with common sense. Growing with a very, very good quality of client base and with a very controlled churn rate. So we prefer to have a lower churn rate with less growth, but with a lower churn rate and a better service margin than having a higher number of subscribers, but with a higher churn rate or a lower service margin.

[indiscernible] If I may, I'm going to do a couple. So first one before entering in the figures, I would first like to clarify your strategic positioning because from last year's event, one of the main messages was to stick to the current offering that is residential intrusion, rolling out entering new offerings such as smart locks, senior caring or lower cost offerings through certification and so on. So while also maintaining this technological hybrid approach that you also mentioned.

So in that case, I see Prosegur somewhere like in the middle between do-it-yourself lower cost offers and premium segment currently led by Verisure. So my question is whether with the change of CEO, you keep this same positioning and market positioning, both in Iberia or rest of the world, whatever. And trust in the tech you adopt from third parties to catch up well in this premium segment? Or any comment on how you see both the low cost and more premium pressures from both sides evolving and where does Prosegur lay in that mix?

And then if I may, second topic I would like to ask is regarding other agreements. We were told we're under discussions to replicate the Movistar Prosegur Alarmas strategy to enter other markets through equity joint ventures, which we've seen it's been a clear success. So if you could share with us if you have made any progress in that front?

And then a last one, addressing the guidance you provided. You forecasted a decline to 8.4% churn in MPA. Just to clarify as a follow-up, if that only refers to the trade-up in customer quality, as you just mentioned or if there's something else you can do there and how that compares to the 7% churn of Verisure? And how can you do in that front? And also in the rest of the world, you are also improving the churn even more aggressively when we were told that churn was even higher in Latin America. If you could explain that trend as well.

I'll take the first one, if you want, since it's regarding our market positioning. So basically, the strategy we want to follow is that we want to become a best-in-class and a premium player on the core security market, core alarm security market, meaning that we want to have the best-in-class security product and alarm product.

On top of that, we're working to bring new services and adjacent products that we can add to that one to improve the market that we can tap to sell more things to our existing customers, to do cross-selling, bundling and things that will improve our ARPU, our margins, our -- would reduce our churn because customers would become more loyal because they have more products. But for sure, we don't want to be trapped in the middle of the do-it-yourself players and the ones we saw at the right-hand side of that slide. That slide was meant to explain the technological approach to how you want to build those capabilities.

But for sure, Prosegur will remain as a premium company and as a premium service, and that will be reflected in the ARPU and the price that we'll ask our customers to pay to us for those services.

Okay. And in relation to the rest of the questions, in terms of joint ventures that we could do in -- with other different companies, in other different countries, we are super open because we are very happy of how the joint venture with Telefonica have evolved. And if we could do it tomorrow in Brazil, we will do it. If we could do it tomorrow in Germany, we will do it. But unfortunately, it's not so easy. So we will -- we are trying to do something. And if we finally get it, you will know it in the future results presentation.

In terms of churn, when this 8.4%...

If you want Diego to answer the churn on Spain because I think this is...

Yes, it's just Spain, perfect. Is the churn rate, why the churn rate is 8.4% and why Verisure is saying that it is lower? I think that is because the way of how Verisure calculated. No, because...

That's one point. And the other point is unless -- I know that the churn from Verisure is a blended one, so comparing all the countries. So you're not comparing like-for-like. This is the Spanish radio. I don't know the Verisure churn rate in Spain, but I guess it will be slightly higher than the 7.4% that they published. Anyway, our aim in Spain is very clear is to be the best in customer satisfaction, and that will come having -- why not? Better churn level than them. That's the plan.

They do publish 7.4%, not 7% though, but still better than ours.

The blended one.

The blended, yes.

And the last question in relation to the Latin American churn rate. This one is higher because -- and I think that you already mentioned it in your explanation. We have 2 type of clients. We have residentials, homes, houses, and we have businesses. In -- the better is to go in residentials. Why? Because the business is more -- is weaker because if the business -- if there is a crisis, or if the economy is not doing well, the business is going to close. So the Alarm will be a churn, will become a churn. So in South America, in some countries, we really have a high business Alarms clients. So that's why the difference because we -- in terms of residential, it is quite similar. So that's why we need to push more the residential type of clients instead of the business type of clients.

Alvaro Lenze from Alantra. I wanted to understand on your strategy of customer experience. You mentioned some things that from the outside, I don't know if the industry is not providing it, but it seemed quite basic stuff like not messing up with the billing and allowing the client to change the password through the app or having video. That doesn't seem too complicated. I really don't mean this as criticism. I'm just trying to understand whether providing this is what has allowed you to go down from the 14%, which was quite high to 9%?

Or is -- are those changes what are going to push you down to 8.4%? Because it really didn't strike me as something that is really differentiated. It's just listening to the client and doing some basic things that we would have expected had been done already. Again, not a criticism, just as just trying to understand.

And then if you do this and you try to focus on the premium market and we would expect there to be slower growth. You have provided a little bit slower growth, but still quite substantial growth. But you haven't mentioned much about your pricing strategy. Because if your product is not superior and you are going to go for the premium client, do you need to entice them somehow. So I want to understand where do you expect your service to be priced to target that kind of clients?

I don't know if you want to get the first one, and I'll can take...

Actually, you know that the sweetest spot of the market is premium, so high value, high price. Our main competitor is Verisure, and we are fighting every day. So our positioning is clearly in the premium side of the market. That's what we do.

And regarding the customer experience question, which I do understand and I do see where you're coming from and it makes sense. I think the hard part of this business is to acquire a new customer. Once you acquire a new customer, if you don't mess up, then you will get a client for 15 years. Especially because compared to other industries like telco, in telco there is a price war. There's no way that you can grow. So the only way you can grow market share is by stilling and fighting against other players.

Here, you have a very healthy market growing a lot. And then if you don't again mess up and your pricing is well set and according to the service that you provide, then normally, what happens is that competition would go and tap into new markets, it would not come to steal your customers and you would not go try to steal the customers, especially in the top 2 customers or 2 players, sorry, in each of the countries. Then if you compete against second tier, then we're normally very good at gaining market share from getting the customers because our products and services are much better and advanced in terms of technology, in terms of innovation, in terms of service itself.

No. And in relation to the -- your second question about the pricing strategy. Here, we are not going to -- as we did in the past with promotions and discount rates and discount -- commercial discounts and so on. We are not going to be so aggressive in any of the countries where we are, not just in Spain that maybe was -- is the closest and maybe even you were analyzed or watching the publicity.

We will just do it if we need to launch a new brand, just because it's the only way to make -- to have a name in a country. So maybe there will be some specific promotions of something, but they are not going to be so aggressive.

I don't know if -- a follow-up question, if I may. When thinking about keeping a client relationship long term and customer retention. I just wanted to understand how your partnership with Movistar, because the churn rates at the telecom company are much higher. Do you see clients that churn maybe go to change their fixed broadband from Movistar to Orange? Do they switch the Alarm or do they stay?

And also, you have mentioned to approach the market relying more on third-party channels. Is that a potential threat to capturing and retaining the client and the customer experience since you no longer have control of the entry of that client?

Actually, it's a good question. Thinking in customer from Telefonica and Prosegur altogether, actually, the best churn ratio comes from customers using both the Alarm and Fusion products. So that meaning that the quality of the customer is super high, and that's good for us. So it's helping actually to decrease the blended churn ratio.

And we are not worried to -- they can switch the company. Of course, we have customers from Telefonica, but also we have customers from the rest of the operators in Spain. That's not the issue.

I think one interesting thing that we can do with Telefonica is that they can -- they share with us some customer base of -- customer base that we can attack, but we don't bundle the services together. So that means that they don't get a single bill with both services. So when they change telecom providers, they might decide to change alarms providers as well, but that doesn't necessarily happen, and we don't see that really happening in the market.

And actually, we tend to bundle, even if we don't bundle with a single billing, but we tend to sell together more with fixed than with mobile. And the fixed churn ratio is much lower than the mobile. So it's actually is comparable to ours, it's around 8% or thereabouts...

Fusion customers.

And regarding the channels and the loss of control, if you want, what we do because that's something that happened in Spain, and you can elaborate on Spain, if you want now, Diego, but that also happened that debate we had it for other countries. So what we do is that once they sell the customer, the ones who install and the ones who signed the contract in the customer's home is us. So that way, we control the quality and the experience of the customers that we onboard.

And Spain, I think...

No, it's exactly the same. So regardless of the channel that the customer came in, we control the full customer onboarding life cycle.

I don't know if there's [indiscernible] one other question.

Regarding the service margin expansion to how much it relies on operational leverage, which I think should be the bulk of it and how much on cost savings from your new operational excellence program?

And the second, on capital allocation, Maite, you mentioned that you are not willing to take debt in rest of the world, except there is M&A opportunities. Why do you think it's cheaper and less risky to grow inorganically rather than organically?

I'm going to start with the second question. I think that inorganically -- organically is cheaper to grow, but it depends on the price of the inorganic. For example, we have just bought some connections in Argentina. And it was cheaper buying the -- they were like 5,000 clients, but it was cheaper buying this M&A than doing it organically. But this is a very, very strange situation. In general, inorganically is more expensive. So that's why we prefer to continue growing organically.

If there is something inorganically, I think that even -- maybe even if we introduce into a new country, it's going to be buying something very small so that later on, we can continue growing step by step. It's not going to be trying to buy, I don't know, 300,000, 600,000 subscribers in Italy. No, we are not going to do that. If we do it, it's going to be inorganically, but very, very -- something very small so that we could keep going and growing organically in that country.

And I have forgotten the first question. It was about the service margin?

Expansion.

[indiscernible]

I'll take this one if you want. Yes, we're doing both things. We're actually reducing the cost structure in terms of what we do and how we do it using new technologies. And actually, one of the main investments that we did in the last couple of years, or 3 years, actually in Spain was the CRM replacement. So that took us a few months and years, and we had to invest there. Then the transformation program that we have is going to make us more efficient, and we're going to consolidate a few teams in certain areas, or countries, where we feel are cheaper and we can operate better.

And the third lever, if you wish, is the ARPU expansion as well. So we're working on the ARPU expansion twofold, if you want. One is because we're reducing discounts, and we elaborated on that in our presentations. But second, because we're adding value-added services, we're adding new products and services that we want to incorporate and cross-sell to our existing customer base.

Okay. I have two questions here online, one for Maite and the other for Diego. So the first one for Maite, it's [indiscernible] Fernandez. She says, as you mentioned, EBITDA with the pre-SAC equals the service margin, which is expected to rise to 63% by 2029 in MPA. Why do you include depreciation and amortization in this figure? I thought it was just revenues subtracted the service cost. That will be the first question.

And the second question for Diego is the -- what's the expected unitary acquisition cost for MPA in the upcoming years?

So in relation to the first question, because of IFRS 15, I'm not going to extend in my accounting knowledge, but more or less for trying to -- the acquisition cost of an Alarm, 35% of the cost is booked as an asset. The rest of it is booked as a cost in our P&L. Which type of cost? Installation cost, commercial cost, equipment cost, those are the 3 main ones, okay?

So in the acquisition cost side, my question would be -- the short answer is going to be pretty stable. in the coming years. But when you look at the acquisition cost, basically, you have 3 main areas. The first one is the channel mix. So depending on the channels, the acquisition cost might be higher or lower. The second area is efficiency. So we're looking for efficiency, so you can do cheaper. And the third one is, as Jaime mentioned before, as the time goes by, we tend to install more devices. And of course, the higher the number of devices you install, the higher the SAC will be. So the short answer is pretty stable, but combining these 3 points.

That's great. And here, a follow-up question for MPA, but also for ROW. It's what's the split among variable cost and fixed costs in the service cost part, what's the split between variable and fixed?

Variable or fixed within the service cost?

Yes. Approximately.

I think that -- and that's actually a very long debate that we always have because when we look at the growth, we need to analyze what's actually fixed so we can dilute fixed costs and improve margins. So that relates to the question Enrique was asking before.

I would say, and keep me honest, you both, but I think around 33 -- 1/3 of the costs of our service cost is fixed, which means that, that's also why some of our other competitors with greater scale have been able to dilute those fixed costs and increase margins, which is something that we'll, for sure, be doing in the coming 2, 3 years.

That's great. So there's -- online, there's no more questions. I don't know if here one more, okay? And I guess that will be the last one because we are running out of time, okay?

Manuel Lorente from Banco Santander. My first question is regarding the growth prospects that you have outlined. There was a slide regarding the new mix. So my first question is regarding from those different channels, the expected growth, it's going to be from this mix towards telesales, third parties. So from the growth that you're expecting, which one is coming from the different channels approximately?

So on that slide, which is related to ROW, rest of the world, you could see that the third-party channels and the telesales, which are the channels that are cheaper are the ones that we are planning to grow the most. So our door-to-door sales force will remain pretty stable, and those are the two will be the ones that will be growing.

Okay. And then again, on that growth from the side of the cost per new subscriber, Diego was mentioned that you expect more or less to be stable. And in the rest of the world, it's also the same trend. And what about the revenue per new subscriber?

So SAC wise, it is a bit difficult because if we talk about that in euros, we have Argentina and other countries which make it difficult. But net-net, we're reducing SAC in the coming years through that strategy that we just discussed regarding the channel mix, which helps us control and reduce the SAC a little bit.

Also, we mentioned the agreement we have with the technology partners, which will bring around 10% to 20% savings regarding the equipment. Part of it, as Diego mentioned, we'll reinvest to install more things in the customer's house. So it's not that we're going to reduce that amount by 20%, unfortunately. But that brings me to your other question, which is the ARPU because we're improving and enhancing and enlarging the equipment that we install. And since we're following a lower discount strategy and a premium pricing strategy, we'll see ARPU coming up in all markets in local currency in the coming years.

Okay. So since, let's say, growth is going to come from new channels, okay, new ways of selling to the client. That's have any issue because you're expecting at the same time to move towards the higher part of the value chain? So are you sure that you can move to this premiumization trends by selling through these channels? Is something that you have worked out that you have addressed?

No, it's a very good question. I think third party are probably less -- more difficult to be used to tap those high-value customers. What we're doing is that we're letting those channels sell to sort of the same customers that we were selling before, which, by the way, we're not that different to the ones that we want to target, since we're skimming the upper part of the pyramid in terms of value, but also telesales is an own channel, so we can use that channel to keep selling to the higher-value customers. And the door-to-door, we will be using to tap those specific highest value customers, especially because they normally need a visit to acquire a new product, or services, because they have bigger houses because they have bigger businesses. And those, for sure, need a face-to-face visit, a face-to-face assessment, security assessment you need to go tell your new customer where they need to put all the cameras, all the detectors, all the sensors. So those will be, for sure, be served by the own door-to-door sales force.

Okay. Now I have a question for Maite or Diego. For the ones that we have been in this chair for many years, we have been hearing that a partnership similar to the one that we have signed with Telefonica in Spain might come in other regions. So Diego, why don't Telefonica sign the same type of agreement with Movistar in other geographies?

Like I said before, I think Prosegur is willing to do it or to replicate the Prosegur MPA model in other countries. So -- but it's not easy. I don't know to -- the short answer is I don't know if that will happen in the future. Of course, I know Prosegur is open. Telefonica has just launch the new strategy. Let's see in the coming months if they are open to replicate the model in other countries.

But also, if I may, I've been in MPA Board for 5 years now, and I've been discussing with some of our colleagues from our internal M&A team with Telefonica team. And I think one interesting thing that happened is that Emilio Garcia was the one pushing, I think, himself for this JV in Spain. He now probably has more power in Telefonica. We discussed many opportunities in Latin America because our footprint was mainly overlapping in Latin America. They sold Hispam and Latin America business in the last 2, 3 years. So it was -- it didn't make sense for them to do a JV and then exit the market.

But we still have some conversations and who knows what would happen because for us, it makes sense -- I think for Telefonica makes sense. You need to combine all interests, incentives and you need to find the right partner to do these things. It is a very successful JV, but it's not as easy as Maite was saying. It never happened in other industries and with other telcos. So we need to find the best way and the best partner and the best country and the best incentives that we can align.

And just sorry, the last one from my side...

Sorry, just to add one more point to Jaime. If you look at this type of, let's say, partnering worldwide, you can only -- you will only find MPA in Spain and [indiscernible] in Portugal, anything else. So you don't have any other example. Because that means it's not that easy.

Okay. And again, just my final one. Hearing to your competitors, looks like there is an amazing opportunity from intelligent artificial-driven type of stuff. They are mentioning that average call per subscribing is reducing by an amazing 20% from IR related issues, or in terms of customer, let's say, exclusion or the ones that -- I mean, they improve roughly 13 percentage points the way they address the correct type of guy to address the proper time at the platform.

So are you already benefiting from those, let's say, issues from AI? Or it's just something that you are starting to walk?

I think we do have a lot of projects already live. I think we have the monitoring center in which we assess all the alarms that we receive in the center. And instead of having lots of agents looking at the screens, we have artificial intelligence looking at what's going on in their homes, and then passing only the real alarms to the agents so they can actually trigger the response. We have the call center -- number of calls reduction as well, as you mentioned. We have virtual agents helping our agents in the call center to bring the best response and answer to each of the calls and reducing the time that we invest in each of the calls. So I think we're pretty much advanced on those things. I don't know if you have more examples.

No. So we have a pretty big funnel today of AI projects. So the basical idea is one of -- some of them are related to how to improve the efficiency in the workplace, and that's basic part. We are already doing collaborating with Microsoft mainly. And as Jaime said before also, we have around 6, 7 projects, much more focused on improving the customer experience.

Of course, they are longer because they are more complex, but we are working on that, and we will see the alarm resident center is a good one. So we are now testing the final phase of the project. And hopefully, in the coming weeks, we'll improve significantly the way we monitor the alarm and the signal from customers. That's just one example, but we have a few already being tested.

I think we are really past our time here. We're going to move to have some coffee, so we can continue answering your questions up there. So again, this is it for today. So thank you all for coming.

Good afternoon, and welcome to Prosegur Third Quarter 2025 Results Presentation Webcast. Before we start, I would like to remind you all that this presentation has been prerecorded and that it will be available on our corporate website.

I will now hand you over to our CFO, Maite Rodriguez.

Good afternoon, and thank you all for your presence. We are pleased to present Prosegur results for the 9 months of 2025. As we shall see throughout the presentation, we continue to outperform last year's results in our main businesses, particularly in Alarms and Security, where our growth strategy has proven to be not only effective as evidenced by the strong financial results and cash generation achieved, but also highly sustainable for the foreseeable future. Going down through our P&L, the results at a business level continue to be leveraged by financial results and accrued taxes, resulting in an impressive 47% increase in net income year-on-year. For all the above, we are confident that we continue to be on the right track to comply with our main objective of generating value for our shareholders.

Now with all this in mind, let's deep dive into the most significant aspect of the period. Our top line grew by 2.5% compared to the same period of last year, mainly driven by organic growth and partially offset by FX effect. As stated, our security business continues to be the engine behind the growth as we continue to penetrate the U.S. market, while at the same time, we are still able to show healthy organic growth rate in more mature markets such as Spain and Portugal. As for profitability, EBITDA stood at EUR 258 million, 9% higher year-over-year, primarily explained by the strong performance of our security business. Indeed, volume growth, coupled with an agile commercial strategy to pass through cost to prices explained the 18% growth compared to the previous year.

Our Cash business, despite showing good operating results in all major geographies was negatively impacted by the depreciation of the dollar, which tend to further trigger devaluation throughout Latin American countries, the devaluation of the Argentinian peso that showed sharp instability to the ramp-up to the legislative elections and the implementation of an aggressive cost-saving program in Latin America. Indeed, as already explained in our previous second quarter results, this resulted in extraordinary severance costs impacting not only in EBITDA, but also cash generation. Going forward, these efficiencies will materialize in higher margins in the future. For our Alarms business, as we will see, operational performance was clearly enhanced, reflected in better and healthier indicators.

This is true for MPA as well as for Prosegur Alarms. It's worth mentioning that in MPA, we reached during the first week of October, 600,000 connections, marking a milestone in our growth history. Not only we were able to achieve double-digit growth, but also did it in sustainable and profitable fashion. As for cash generation, we were able to partially offset the slowdown from our cash business, thanks to the efficient working capital management and by keeping infrastructure CapEx under control. Our security business further contributed to this task. As said, and as we will go through in detail later in the presentation, the addition of the cost saving program and the FX volatility impacted cash generation in our cash business.

We continue to show a strong and solid position debt-wise. Indeed, net debt stands at 2.3x relative to EBITDA. As we shall later see, in Prosegur Cash, we successfully issued a EUR 300 million 5 years bond at a highly competitive rate of 3.38%. This not only highlights the good work from our financial team, but also the good prospect of the business for the future. It is indeed a good testament to our ability to transform and diversify our business, both geographically and product-wise, as we have been arguing in the past.

Let's now turn to Slide 2, where I would like to deep dive into our sales and EBITDA figures. As said, total sales during the first quarter increased by 2.5% over last year, reaching EUR 3.7 billion. Discounting for the FX effect maybe in Latin American regions, almost the entire growth was organic, evidencing on the one hand, our strict policy when it comes to passing through inflation to prices and on the other, our capacity to capture additional volume as we continue increasing our market share. As for geographic sales diversification, it should be noted that growth continues to be the driver. Both USA and APAC region continue to grow at higher than average rate. This is very relevant and speaks to the future growth avenues of our main businesses. As you already know, in our Security business, we continue to bet for USA as we see it as an exceptional market given its size, margins and our capacity to continue penetrating it as we offer a wide range of products and services.

In our Cash business, our strategy is twofold. In most mature markets, we accelerate diversification through transformation products, while in the APAC region, we continue to see high growth rates in our traditional service. Moving now to further review profitability. EBITDA reached EUR 258 million, marking a healthy 9% increase compared to last year. Our Cash business registered an EBITDA of EUR 164 million, marking an 8.5% reduction when compared with the previous year. This includes the extraordinary expenses incurred due to the implementation of the cost saving program. If excluded, EBITDA would have amounted to EUR 176 million, in line with last year.

Turning now to our Security business. EBITDA amounted to EUR 63 million, 17.5% higher compared to the first half of 2024. Healthy volume growth, coupled with a strict discipline on cost explained the enhanced performance. Technology sales further contributed to the good results. As we always explained, our ability to provide high-end tech solutions is one of our main competitive advantages and continues one of our main pillars. Lastly, our Alarms business continues to be on good track and good proof of this is the evolution of main financial indicators such as service margin and churn rate. At this point, I would like to explain the results generated by our PGA division. As you may probably know, PGA stands for Prosegur Gestion de Activos, and it's a business line itself.

The only difference to the other business lines we operate is that PGA does not offer services to third parties. In a nutshell, the PGA provides 3 different type of services. It rents buildings and facilities to most of the other businesses. It owns the Prosegur brand, reason why it charges a royalty for letting the other businesses use it and provides a consulting service to the other businesses, including finance, human resources, legal and IT services. At the same time, it incurs with any other corporate expenses.

With this, what we want to convey is that as any other business line, it has a P&L, and we strive to maximize it as in any other business. Let's now turn to our P&L that, as it can be seen, showed a remarkable increase compared to last year. The better performance on financial results, as already explained in past presentations, has a lot to do with the normalization of the Argentina economy. As explained, inflation rates are going down quite rapidly, resulting in a negligible impact due to inflation accounting.

At the same time, the abrupt narrowing of the FX gaps further contributed as dividend upstreaming became cheaper. Going further down to accrued taxes, the 238 basis points reduction in the effective rate should be highlighted. The rationale behind this reduction is twofold. On the one hand, we had better results in all individual geographies. And on the other, as just explained, negative results stemming from hyperinflation accounting and dividend upstreaming were significantly reduced. All of the above led to a net consolidated income of EUR 82 million, achieving an astonishing 59% higher year-over-year.

Let's now turn to cash generation during the period. At first, the EUR 22 million reduction in operating cash flow pops out. However, 2 things should be duly noted. The first one is the EUR 12 million of extraordinary severance cost of the already mentioned cost saving program in our cash business in LatAm. The second one is the delay of EUR 14 million of sales that were collected during the first week of October. Factoring for these 2 effects, the pro forma operating cash flow amount to EUR 147 million, EUR 4 million higher compared to the previous year. The EUR 9 million reduction in working capital requirements despite higher sales is worth of mention as we continue to pursue a strict discipline when it comes to DSO. As already stated, net financial debt reached EUR 1.3 billion, resulting in a total net debt-to-EBITDA ratio of 2.3x. It's worth highlighting that both the structure of the debt has recently been enhanced in October as Prosegur cash has successfully issued a EUR 300 million 5-year bond at 3.38%.

That's all from me for now. I will now turn the presentation over to our Head of Investor Relations, Juan Ignacio Galleano, who will give you more detailed information on the development of the specific business areas.

Thank you very much, Maite. Let's now have a look at the results of each business line covering the main performance indicators and most relevant aspects of the period. Starting with our cash business, I would like to reinforce the almost 7% of organic growth that we achieved during the first 9 months of the year. Growth drivers have been twofold. First, volumes from our traditional business continued to grow at double-digit rates in the APAC region. Second, transformation products continue to deliver good results, reaching now 35% of total sales. This is highly relevant as it paves the way for more sustainable growth for the near future in more mature regions.

At the same time, it should be stated that revenues of our traditional volumes in regions other than APAC continued to grow, partially thanks to our ability to pass through inflation, but most importantly, because volumes themselves continue to grow, albeit at a lower pace. As for EBITDA, we already mentioned the extraordinary impact of the severance costs associated with the cost saving program we deployed in LatAm. As you all know, the macroeconomic environment has drastically shifted with inflation rates slowing down. This has forced us to readapt our cost structure to this new environment.

At the same time, the high penetration of cash today in the countries enable us to enhance logistics of our traditional business by making it more efficient and thus allowing us to reduce workforce. It's worth to highlight that once the extraordinary costs are excluded, EBITDA margin reached 11.8%, in line with the previous year. Turning now to cash generation. Operating cash flow reached EUR 109 million, marking a 23% reduction compared to the previous year. Once again, the EUR 12 million of extraordinary costs stemming from the cost saving program, coupled with FX impact, mainly explains the reduction.

At the same time, it should be noted that approximately half of the postponement in the collections that we already referred to were from our cash business. It is worth highlighting that the annual cost of upstreaming dividends from Argentina is now under EUR 1 million, a significant reduction compared to previous years. Given the outcome of recent elections in Argentina, we should expect that the burden of such costs continue to be negligible in the foreseeable future. On the positives, the strong discipline in CapEx and working capital requirements should be noted.

Let's move now to our Security business, which continues to favorably evolve over time. Total revenues reached EUR 1.9 billion with the organic share reaching 13%. As usual, this is mainly driven by our volume-based strategy that leads to operating leverage, our capacity to pass through inflation to prices and the outstanding performance of the operation in the U.S. The latter also explains the negative FX impact as the dollar continued to depreciate against the euro during the quarter. All the above, coupled with enhanced efficiencies and operating leverage resulted in total EBITDA reaching EUR 63 million, 17.5% higher compared to the same period of last year.

Margins for the part continued to increase, reaching 3.27% during the first 9 months of the year. Even though all geographies performed, results were mainly driven by our operations in Spain and the USA amid the fact that we accelerated the pass-through of cost to prices compared to last year. Operating cash flow resulted in EUR 37 million compared to the EUR 2 million registered during the first 9 months of last year. This is by every means impressive and marks a new standard for the business.

Indeed, we've already reached volumes and margins that imply a positive cash flows, no matter how aggressive we are in sales growth. This is definitely a very important milestone for the company as now all main businesses will contribute to our deleveraging strategy. Let's now turn to the Alarms business, where we reached another important milestone. Indeed, our client base in MePA surpassed the 600,000 connections during the first week of October, while DTC continues to increase in Prosegur Alarms. As we always stress, the growth itself is not nearly as important as the quality of the growth, reason why we are very pleased with the results we are showing.

Indeed, we continue to reduce churn rate in MePA, reaching 9%, 2 percentage points lower compared to the previous year. In Prosegur Alarms, churn rate showed some resistance to go down, mainly explained by the particular economic situation in Argentina, in which the population is under strong economic stress negatively impacted in churn rate. As for ARPU and service margin, they continue to increase at very healthy rates. I would like to highlight that service margin includes depreciation costs. These costs are mainly associated with part of the acquisition cost that is being capitalized following NIIF 15. Once excluded, service margin for Prosegur Alarms and MePA would increase 4% and 1%, respectively. As for acquisition costs, the increase in both cases has to do with the deliberate strategy of increasing marketing expenses, while at the same time, we continue to invest in product enhancements.

In this line, it's worth mentioning that new channels are rapidly growing. We intend to continue betting on these channels as they bring good quality connections at lower costs. As the share of these alternative channels grow over time, the overall acquisition cost should go down even if we continue investing in marketing and in product enhancement.

Let's now turn to the following slide to see how all these indicators flow into recurring cash flow. The combination of higher service margin, coupled with either stable or lower churn rate naturally implies an increase in recurring cash flow, that is the resulting cash after the clients that churn are fully reacquired. In the charts above, we are showing is the 12-month rolling recurring cash flow of both Prosegur Alarms and MePA. The one on the right side clearly indicates that the generating cash flow capacity of the 2 businesses combined for Prosegur stands at EUR 81 million, 21% higher year-over-year.

As mentioned in previous presentations, recurring cash flow is consistently reinvested into driving growth. Nonetheless, it reflects the true cash generation capacity of the Alarms business, clearly underscoring its strong cash generation potential. This concludes our analysis of the performance of each business line for the first 9 months of the year.

Thank you all for your attention. I will now hand the microphone back to our CFO, Maite Rodriguez, for closing remarks.

Thank you very much, Juan Ignacio. Let me now share with you my closing thoughts on the most relevant conclusions of this results presentation. Overall, as we have seen during the presentation, all businesses reported enhanced operating efficiencies and strong results. On a consolidated basis, total sales increased 2.5%, reaching EUR 3.7 billion despite the adverse effect of depreciated currencies. EBITDA increased 9%, while net income increased by a remarkable 47%, thanks to the good performance of all our business lines. Normalized consolidated operating cash flow reached EUR 147 million once the EUR 26 million extraordinary impact are excluded. In our Cash business, the organic sales increased by a healthy 7%, while we put in place an aggressive cost saving program, thanks to the good penetration of our transformation products that will allow us to further increase EBITDA margins in the upcoming months.

Turning to our Security business. Sales volumes increased by 6% compared to the previous year, and we achieved higher margins, thanks not only to scalability, but also to a robust client portfolio and efficient price pass-through. Even more important is the fact that the business will start to structurally contribute with positive cash flows from now on. Lastly, our Alarms business demonstrated very solid growth, surpassing the 1 million connections. This growth is accompanied by strong results in key management indicators. We have seen improvements in churn, service margins and ARPU. This strong performance translates into a rolling recurring cash flow of EUR 81 million, implying a 21% year-over-year increase and pointing the robust cash generation. As many of you know, we are finalizing our strategic plan for the next 4 years with objectives set on a biannual basis.

Once completed, we would like to share with you our strategy for the Alarms business. Therefore, we are pleased to invite you to an Alarms Capital Market Day on Tuesday, December 16, where we hope to address any questions you may have regarding the valuation of the Alarms business. As said at the beginning of the presentation, we reported strong results for the first 9 months of the year, paving the way for achieving the objectives set for the year. This was all on my side for this results presentation.

I would like to thank you all once again, and we are now open for Q&A.

[Operator Instructions] We will now take our first question. This is from Enrique Yáguez from Bestinver Securities.

I have 2 questions. The first one is regarding the strong improvement in profitability in the Security business in the second quarter despite some deceleration in organic growth. So the question is what has driven this strong improvement if there's no further volumes? Is just -- is this explained by the timing of the pass-through of cost or any other reason?

And second, on the Alarms business. I know that you have said that you are going to host an Investor Day for this business on December, where you would probably explain the strategy. But my question is, taking into consideration the attractive valuation achieved by Verisure in its IPO, could you consider a potential partial disposal of this business unit over the next year in order to crystallize value?

Thank you, Enrique, for your 2 questions. In relation to the first one about the strong security -- the strong growth of the security business in this quarter, we are very happy with the results of the Security business, how it's evolving. And we -- even we think that we are going to continue having this positive tendency. It's mainly -- it's not coming because nothing special. It's just because the business is doing well. USA and Iberia, they are -- as you know, they have the higher margins, and they are also doing very well. We are increasing volumes, but we are also doing efficiencies. We are also having a strict discipline in passing through to inflation. So all these together and also controlling very well all our operations, it's providing a good result, not only in the P&L, but also in the cash flow.

I would like to point out something that in this quarter, we have a 4% stand-alone improvement. For the next quarter, it's not going to be so high, but it's also going to be positive, and it's also going to be even higher than last year. Why is that? Yes, I would like to remind that all when we transfer cost to prices, sometimes we anticipated those transfers and sometimes we have delays. So in this quarter, we have anticipated something that was supposed to enter in the 4Q. So I would like to point out that. But the main reason is because the business is doing well because we have very clear targets in efficiencies, in operative optimizations, in passing through cost and also the technology business, as historically, we always have been saying that they always help us because it makes us provide a different type of service with more value to our customers is also helping.

And in key countries, the technology is also doing very well, and that means that the margin is also increasing. But it's not the difference because the main improvements are coming from the Guarding business. So -- the traditional one, I mean. So it's just because we have very clear goals and a very, very good team. And in relation to the second question, and thank you for this question because I think that it's important to mention or to speak about the succeed of the IPO of Verisure, mainly because they have solid at a multiple of 79x the monthly fee. While -- and even when we -- I would like to remind also that when we sold MPA in 2020, it was at 78x. What it means that the value per subscription of Verisure amount the day of the IPO of EUR 3,600. And today, I think that even it's higher. And when we sold MPA, it was like EUR 2,900.

So if we just do that with what we have now, I know that we are different to Verisure. Verisure is a bigger company and that means that if they have bigger size, they have more scalability and higher margins. And even they have different geographies. But if we go to the geographies that we have had similar quality of connections or of subscripters. And if we apply, for example, our EUR 2,900 per connection of MPA to our current portfolio of Iberia, discounting the 50% of Telefónica part, our -- between our 50% Spanish MPA and 100% of our Portuguese, we have more than 400,000 connections. So if we just multiply EUR 2,900 means that just Iberia's value is EUR 1.2 billion. So -- and our market capitalization is around EUR 1.5 billion. So I think that Alarms business and thanks to this IPO of Verisure demonstrates that is the hiding treasury of Prosegur.

And I think that this IPO even demonstrates that. So -- and in relation, if we are going to crystallize it in the future, we will see. But from now on, it's not -- as I always say, it's not on the table. But what we have to do is we have to continue growing. We have to continue maintaining our good indicators. We have to improve our service margin so that we have a better quality of subscripters. And so that we can increase the value per connection instead of being EUR 2,900, we could arrive to those EUR 4,000 that is the value of Verisure's euros per connection. So from now on, we are not going to crystallize it, but it -- I think that it's -- that's why we are growing and growing and growing, but it's something that, I don't know, maybe in the long future, it could be an option, but not in the short or even on the 16th of December in our Investor Day, we are not going to mention that because it's not on the table.

We'll now take our next question. And this is from Alvaro Bernal from Alantra.

My one is regarding the PGA. Nine months -- well, the PGA and others, the line that incorporates a bit of everything when you do the differences for the EBITDA in this 9 months, it summed EUR 31 million this year. And last year, we're talking about EUR 4 million. That's approximately a EUR 30 million delta. If you could break it down to see where exactly it's coming from, it would be amazing. I understand that it's mainly from the PGA. But within the PGA, there are several things. And if it's basically coming from charging to other divisions, that means that implicitly, there is one that is performing better. And just want to get my head clear around that fact.

Yes, that's my first question. And my second question is regarding the Alarms business, precisely MPA. When do you expect to be free cash flow breakeven after post growth? So if I'm more or less correct in my assumptions, this could come next year or the following one. Is that in your plans?

Thank you, Alvaro. In relation to the other businesses that is related to Prosegur Tech and PGA and shareholder cost. I will try to explain you slowly and like with a full explanation because maybe it's complicated to understand it. So we have in others, what we have or overhead, so I don't know how we call it, we have -- from one side, we have cybersecurity, AVOS that both of them, they have an EBITDA in the case of cybersecurity in this third Q of minus 7% and AVOS of plus 4%. The rest is related -- we have plus 26% that is related to what we call PGA plus shareholders. So in PGA, Prosegur Gestion de Activos, what we have, and that's why it's positive, it's because we have building -- we include 3 different concepts.

The first one is the building rentals, the revenue that PGA is receiving just because we rent all our buildings to the rest of the businesses. We have the trademark that here from last year to this year, both of them buildings and trademark has increased quite significantly, mainly because in the case of the trademarks, it's coming because of an agreement that we achieved with the Spanish tax authorities. And that's why the royalty must be higher. In the case of buildings, it's because a lot is also coming from the inflation of Argentina that we are increasing the rent. And the third part, the third point that is included in PGA is related to the markup that we charge to the different businesses coming from the service that the support areas or the legal, HR and so on services that we provide. But this one must be splitted in 2.

The first one is related to the local expenses to the local -- expect this for PGA, but -- or for the -- sorry, for the businesses, the local expenses that provide a consulting service to the businesses, but locally. And here, we have like, I don't know, finance, HR, legal, IT, the ERP costs and things like that. But then we also have corporate expenses. Corporate expenses is like the headquarters expenses. So -- but these ones, these expenses, they are not -- they are also included in the margin that you are analyzing when you see the margin of Security, the margin of Cash, the margin of Alarms, those expenses, those corporate expenses are also included. Even we are thinking that maybe at the beginning of the year, we are going to try to -- those overheads or those headquarters or corporate expenses to exclude them from the businesses.

Why? Because sometimes when you calculate the -- I don't know, Security is going to be, I don't know how many times EBITDA. you are also including those corporate expenses. So -- but if I sell tomorrow the Security business, they are not going to include those expenses. So we are thinking that for year-end, we are going to give you like both margins, the Cash, Security and all of them with those headquarters expenses and without those headquarters expenses. And those ones, of course, they are always negative. And I think that, that -- when we say overhead, sometimes we are thinking on PGA, I think that there are some misunderstood between the concept between what we call overhead, what the analysts call overhead and so on. So I don't know if you get the idea of what I was trying to explain, but if not, we will also include a specific slide in the next results presentation so that we could clarify all this.

Yes, everything understood.

And related to the Alarms question about when we are going to reduce the debt. We will tell you the 16th of December in the Investor Day, okay, that we will give a little bit of guidance and so on. You will have to wait till then.

Hoping to get that [indiscernible] on the PGA would be very helpful for us, definitely.

[Operator Instructions] And we have a follow-up question coming through. The question is from Enrique Yáguez, Bestinver Securities.

Sorry for coming back. I have another question regarding your balance sheet. For this year, your main target was reducing financial leverage. Taking into consideration that you are on a good path to achieve it, what will be your main financial objective for next year and if you will consider reactivating M&A optionality in security or in the cash business? I know that you are trying to follow opportunities in the business or even improve the shareholder remuneration.

Thank you, Yáguez, for your question. In relation to debt, we are -- as you know, we keep our goal that is trying to decrease the net debt that we have. And for next year, in terms of capital allocation, we will -- now in December, we are going to pay our EUR 87 million dividend. But I can't still -- I can't tell you what we are going to do for the next years, mainly because we are working now on our strategic plan, and it will be approved in the Board of February. So we are still working on that. And maybe on the February's full year results presentation, I could provide you a little bit more guidance in relation to that.

And there are no further questions at this time. So I would now hand the conference back to the speakers.

Thank you very much for attending the presentation. If you need further information, please contact our Investor Relations department, who is open to help you at any time. See you the December 16.

Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect. Speakers, please stand by.

Good day, and thank you for standing by. Welcome to the Prosegur Q2 2025 Results Presentation. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Juan Ignacio Galleano, Head of IR. Please go ahead.

Good afternoon, and welcome to Prosegur First Half 2025 Results Presentation Webcast. Before we start, I would like to remind you that this presentation has been prerecorded and that it will be available on our corporate website. I will now hand you over to our CFO, Maite Rodríguez.

Good afternoon, and thank you all for your presence. We are pleased to present Prosegur's results for the first half of 2025. As we shall see throughout the presentation, operating results continue to follow a strong path, showing good performance when compared to last year.

From a financial standpoint, net income marked an impressive 80% increase year-on-year, evidencing a strong performance not only at an operational level, but also from a treasury and tax perspective.

For all the above, we are confident that we continue to be on the right track to comply with our main objective of generating value for our shareholders. All our commercial and financial teams are working side-by-side that goal, and we expect the second half of the year to be marked by cash flow generation and further deleveraging of the company.

Now with all this in mind, let's take a deep dive into the most significant aspect of the period. Our top line grew by 5.1% compared to the same period of last year, mainly driven by organic growth. Every region where we operate increased, with a special highlight in the United States and the APAC region. As we shall later see, in the former region, our Security business continued to experience strong growth, while in the later, cash volumes continued to increase at very healthy levels.

As for profitability, EBITA stood at EUR 170 million, 15.9% higher year-over-year, mainly explained by the strong performance of our Security business. Indeed, volume growth jointly with an agile commercial strategy to pass through cost to prices explain the results.

Our Cash business showed good operating performance in all major geographies. However, results were somehow impacted by the devaluation of the dollar, which tend to trigger devaluation throughout Latin American currencies, and by the implementation of an aggressive cost-saving program. We will explain this in detail later. But for now, keep in mind that it resulted in high severance costs.

For our Alarm business, as we will see, operational performance was clearly enhanced, reflected in better and healthier indicators. In this framework, it is remarkable the fact that we have achieved 1 million connections. Thanks to an efficient working capital management and keeping infrastructure CapEx under control, the higher achieved profitability resounded in higher cash generation.

Overall, net debt stands at 2.3x relative to EBITDA despite our typical seasonality in the first half of the period. Let me remind you that our debt is not only very well structured in the long run, but also very cheap, with an average cost of 2.4%.

A few words on Argentina are worth of mention. While the economy continues to normalize from a macroeconomic perspective, as inflation rate continues to reduce on a monthly basis, FX has recently shown some relative volatility. This has more to do with the upcoming midterm elections rather than to deep fundamentals.

On the growth side, the sharp recovery that the economy experienced throughout the first half of the year is already behind us, and now growth rates have normalized to more sustainable levels.

Let's now turn to Slide 2, where I would like to deep dive into our sales and EBITA figures. As said, total sales during the first quarter increased by 5.1% over last year, reaching EUR 2.5 billion. Discounting for the FX effect, almost the entire growth was organic, evidencing our strict policy when it comes to passing through inflation to prices.

At the same time, volumes continued to grow, both in our most traditional businesses without exception and most importantly, in our transformation product.

As for geographic sales diversification, it should be noted that growth continues to be the driver. Both U.S.A. and APAC region continued to grow at higher-than-average rate. We foresee to see the exact same trend for the upcoming years positively affecting the sustainability of the entire company.

Moving now to further review profitability. EBITA reached EUR 170 million, marking a healthy 15.9% increase compared to last year. Our Cash business registered an EBITA of EUR 112 million, in line with the previous year. This includes the extraordinary expenses incurred due to the implementation of the cost-saving program coming from reorganizing the distribution of our stocks. If excluded, EBITA amount to EUR 117 million, marking a 3.7% increase year-over-year.

Turning now to our Security business. EBITA amounted to EUR 38 million, 12.1% higher compared to the first half of 2024. Healthy volume growth, coupled with a strict discipline on cost, explained the enhanced performance. Technology sales further contributed to the good results. As we always explain, our ability to provide high-end tech solutions is one of our main competitive advantages and constitutes one of our main pillars.

Lastly, our Alarm business continues to be on good track and good proof of this is the evolution of main financial indicators such as service margin and churn rate.

Let's now turn to our full P&L that, as it can be seen, showed a remarkable increase compared to last year. The better performance on financial results has a lot to do with the normalization of the Argentine economy. As explained, inflation rates are going down quite rapidly, resulting in a minor impact due to the inflation accounting. At the same time, the abrupt narrowing of the FX gaps further contributed as dividend upstreaming became cheaper.

Going further down to accrued taxes, the 279-basis point reduction in the effective rate should be highlighted. The rationale behind this reduction is twofold. On the one hand, we had better results in all individual geographies. And on the other, as just explained, negative results stemming from hyperinflation accounting and dividend upstreaming were significantly reduced. All of the above led to a net income of EUR 64 million, achieving an astonishing 80% higher year-over-year.

Let's now turn to cash generation during the period. As it can be seen, following the historical seasonality of the business, free cash flow resulted in negative EUR 36 million, EUR 8 million higher compared to the previous year. This is naturally explained by a higher EBITA, but also as a result of a strict discipline on DSO, resulting in less consumption out of working capital requirements and by lower CapEx.

Net financial debt reached EUR 1.4 billion, resulting in a total net debt-to-EBITDA ratio of 2.3x. It's worth highlighting that both the terms and the structure of our debt is very healthy with an average cost at 2.4% and over 65% at fixed rate maturing between 2026 and 2029.

As already explained in the previous quarter, Prosegur cash bond matures in 2026, which has been recorded as short term on our balance sheet, but we have practically completed this refinancing, while the new loans will mature between the next 3 to 5 years.

That's all for me for now. I will now turn the presentation over to our Head of Investor Relations, Juan Ignacio Galleano, who will give you more detailed information on the development of the specific business areas.

Thank you very much, Maite. Let's now have a look at the results of each business line, covering the main performance indicators and the most relevant aspects of the period.

Starting with our Cash business, I would like to reinforce the almost 10% organic growth that we achieved during the first half of the year. This is a good testament to not only an effective commercial strategy, but also and perhaps more relevant to healthy volume growth.

As we always stress, our diverse geographic footprint, coupled with our commitment to transformation products are cornerstones to cope with a more challenging environment in developed countries. As for the latter, sales already exceed 34%, marking an impressive increase year-over-year. Cash to-date are definitely driving this growth, which leads me to the cost savings program that we implemented.

The truth is that not only cash to-date constitutes an additional source of revenue and profit, but it also allows us to enhance the logistics of our traditional business. In particular, we can reorganize the distribution of our stops, enabling us to make a better and more efficient use of our fleet and to reduce workforce.

At the same time, we've made several enhancements to the distribution of the routes, which combined with the normalization of the Argentinian economy that we already referred to allow us to further reduce stops. This will naturally result in better margins in the months to come, but it negatively impacted second quarter's results as we had to incur insignificant severance costs. It's worth mentioning that we estimate a 1.5 years payback on this cost savings program.

As it is shown in the mid-graph, once these costs are fully excluded, EBITA increased by 3.7% year-on-year, while EBITA margin rose from 11.3% to 11.7%.

Let's move now to our Security business, which continues to favorably evolve. Total revenues reached EUR 1.3 billion with the organic share reaching 16%. As usual, this is mainly driven by our volume-based strategy that leads to operating leverage, our capacity to pass through inflation to prices and the outstanding performance of the operation in the main countries. The latter also explains the negative FX impact as the dollar continued to depreciate against the euro during the quarter. All the above, coupled with enhanced efficiencies and operating leverage resulted in total EBITA reaching EUR 38 million, 12% higher compared to the same period last year.

Margins for the part continued to increase, reaching 2.94% during the first half of the year. Even though all geographies performed, results were mainly driven by our operations in Spain and the U.S.A. As we have explained in past results, macroeconomic stability in Argentina, evidenced by the significant reduction in inflation rate is very positive for the business. As for the U.S.A., it continues to be a very important driver, and we are confident that it will continue to be so as we plan to further expand operations there.

Operating cash flow resulted in EUR 16 million compared to the negative EUR 20 million registered in the first half of last year. This is by every means impressive and marks a new standard for the business. Indeed, we've already reached volumes and margins that imply positive cash flows no matter how aggressive we are in sales growth. In fact, operating cash flow includes an EUR 11 million working capital impact resulting from higher volumes. This is definitely a very important milestone for the company as now all main businesses will contribute to our deleveraging strategy.

Let's now turn to the Alarm business, where we reached another important milestone. Indeed, our client base surpassed the 1 million connections, marking a 13.1% increase year-over-year.

As we always highlight, growing in BTC is crucial for the business. It needs to be done in a healthy manner in order to be able to translate the growth into long-term value creation.

In that end, it's clear from the graph that we achieved that as every relevant KPI moved in the right direction. Churn rate stayed in line in Prosegur Alarms and was reduced by 1% in Movistar Prosegur Alarmas, reaching the sweet spot of 10%. ARPU and consequently, the service margins for the part increased, reaching EUR 20 and EUR 22 for BTC for Prosegur Alarms and MPA, respectively, evidencing a strict discipline of our commercial team when it comes to passing through costs to prices.

As for acquisition costs, the increase in both cases has to do with a deliberate strategy of increasing marketing expenses, while at the same time, we continue to invest in product enhancements.

Let's now turn to the following slide to see how all these indicators flow into recurring cash flow. The combination of higher service margin coupled with either stable or lower churn rate naturally implies an increase in recurring cash flow. That is, the resulting cash after the clients that churn are fully reacquired.

In the charts above, what we are showing is the 12-month rolling recurring cash flow of both Prosegur Alarms and MPA. The one on the right side clearly indicates that the generating cash flow capacity of the 2 businesses combined for Prosegur stands at EUR 76 million, 25% higher year-over-year.

This concludes our analysis of the performance of each business line for the first half of the year. Thank you all for your attention. I will now hand the microphone back to our CFO, Maite Rodríguez, for her closing remarks.

Thank you very much, Juan Ignacio. Let me now share with you my closing thoughts on the most relevant conclusions of this results presentation.

Overall, as we have seen during the presentation, all businesses reported enhanced operating efficiencies and strong results. On a consolidated basis, total sales increased 5% despite the adverse effect of depreciated currencies. EBITA margin reached 16%, while net income increased by a remarkable 80%, thanks to the good performance of all our business lines.

In our Cash business, the organic sales increased by 10%, while we put in place an extraordinary cost saving program, thanks to reorganizing the distribution of our stops that will allow us to increase EBITA margins in the future.

Turning to our Security business. Sales volumes increased by 8% compared to the previous year, and we achieved higher margins, thanks not only to scalability, but also to a robust client portfolio and efficient price pass-through. Even more important is the fact that the business will start to structurally contribute with positive cash flows from now on, probably excluding the first quarter due to seasonality. This is definitely, as mentioned before, a very important milestone for the company as now all main businesses will contribute to our deleveraging strategy.

Lastly, our Alarm business demonstrated very solid growth, surpassing the 1 million connections. This growth is accompanied by strong result in key management indicators. We have seen improvements in churn, service margin and ARPU. This strong performance translates into a rolling recurring cash flow of EUR 76 million, implying a 26% year-over-year increase and pointing to a robust cash generation.

As said at the beginning of the presentation, we reported a strong first half of the year, paving the way for achieving the objectives set for 2025.

This was all on my side for this results presentation. I would like to thank you all once again, and we are now open for Q&A.

[Operator Instructions] We will now take the first question from the line of Alvaro Bernal from Alantra.

I have two. The first one is regarding the EBITA from corporates. I'm seeing in your accounts that for the first half, it has yielded EUR 20 million.

If you can shed more color there. What is driving this result? I think something similar happened already in Q1, but it's repeated once again in Q2. Maybe you can just refresh me what that was?

And the second question is regarding Security stand-alone in Q2. We have seen growth when it comes to sales. But in terms of margin, when we look at it stand-alone Q2 versus last year, it has fallen. If you can again shed some color on the product mix here, it would be amazing.

Thank you, Alvaro, for your questions. In relation to the first one, coming from what's happening with the overhead, why we have EUR 20 million positive overhead, it's mainly because there are like three reasons here.

The first one is coming because we are also booking there all the revenues coming from the rent of our buildings. As you know, we have a real estate that amounts more than EUR 300 million. And part of it, around EUR 70 million is allocated in Argentina in some towers that we have in a very prime area. And the rents that we are receiving from there, they have also increased. So we have an increase coming from them from the real estate.

The other one, as I also mentioned in the first Q is coming from the trademark, mainly because the Security business is achieving better results. So we are receiving a better income coming from trademark, but also because we have agreed with the Spanish tax authority a new brand royalty and the one that is higher in comparison to previous years, and that's why it also has increased.

The rest of the amounts are related to the markup that we charge to the rest of the businesses coming from the support areas.

In relation to the second question about the stand-alone margin of Security, you have to consider here, as we mentioned also on the first Q, that we -- there was the pass-through in -- as you know, we are all the year passing through prices during the year. And the first Q really has a very, very good result because we're taking -- because we did it in advance. More or less 5% was done in advance. So that's why you have that difference.

But we -- even we mentioned it in our first Q results presentation that it was not going to be -- we were not going to have such a big margin and such a big increase in the rest of the year, but it was mainly because of that because the low inflation helps us also passing through prices quicker, and we are really doing very well this year.

And it's one of the keys why we are still continuing having that good margin also in this second half because as you know, seasonality is one of our main impact that we have coming from this passing through inflation to prices.

Perfect. And a follow-up to both questions, if I may, regarding forward-looking statement on how we should view on the one hand, the PGA and unallocated EBITA going forward, if we should expect this to be recurrent? And in terms of Security, the margins when looking at them for the whole year?

Alvaro, in relation to PGA, yes, for the rest of the year, the trend is going to be the same one. It's going to be positive. And even I can tell you that it's going to be like that from now on also for -- even for the budget that we are doing for 2026 is also positive.

And the second one in relation to what's going -- what we expect in the Security margins for year-end. We are going to keep this trend. As you know, as I always say, Security business is a volume business. So the improvement happen little by little based on our strict discipline in passing through inflation, in the control in the absenteeism, in the scalability and so on. So we will have a positive trend. We are going to have better margins than last year.

And I think that the most significant milestone for this year is going to be that the cash flow is going to be -- at least they are going to generate EUR 33 million, and we expect that even it's going to be more. So that's going to be an important milestone for the year because from now on, all the business units that Prosegur has are going to contribute positively on our deleveraging strategy. So that's a very positive thing, and that's why we are also positive on the deleveraging for year-end.

There are no further questions at this time. I would like to hand back -- one moment, please. We have another question from the line of Joaquin Garcia-Quiros from JB Capital.

Just a very quick one. So the Alarm continues to grow at a very good rate. It continues to add lots of new clients, but at the cost of increasing the acquisition cost, it has increased quite significantly in both regions. Should -- are these levels where you feel comfortable that you can maintain them at least for the next few years? And when can we expect the acquisition cost to go down, if ever?

Thank you, Joaquin, for your question. In relation to the acquisition cost of Alarms, as you know now, we are investing a lot in marketing, in publicity and in the product improvement. So that's why you are observing that increase.

During this year, 2025, it's going to keep it like that. I don't expect any decrease in terms of acquisition cost. But for the 2026, for sure that there will be a decrease. But this year, no, because we -- as you know, we are changing our marketing and publicity strategy, and this implies a higher investment in publicity and so that's why it's increasing. But it's not going to be for the long run.

Thank you. There are no further questions at this time. I would now like to turn the conference back to Maite Rodríguez for closing remarks.

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