Prosegur Cash S.A.

Audit Report / Information • Feb 27, 2022

Audit Report on consolidated Annual Accounts issued by an Independent Auditor

PROSEGUR CASH, S.A. AND SUBSIDIARIES Consolidated Annual Accounts and Consolidated Director's Report for the year ended December 31, 2021

AUDIT REPORT ON CONSOLIDATED ANNUAL ACCOUNTS ISSUED BY AN INDEPENDENT AUDITOR

Translation of a report and annual accounts originally issued in Spanish. In the event of discrepancy, the Spanish-language version prevails

To the shareholders of PROSEGUR CASH, S.A.:

Audit report on the consolidated annual accounts

Opinion

We have audited the consolidated annual accounts of PROSEGUR CASH, S.A. (the parent) and its subsidiaries (the Group), which comprise the consolidated balance sheet at December 31, 2021, the consolidated income statement, the consolidated statement of other comprehensive income, the consolidated statement of changes in equity, the consolidated cash flow statement, and the notes thereto, for the year then ended.

In our opinion, the accompanying consolidated annual accounts give a true and fair view, in all material respects, of consolidated equity and the consolidated financial position of the Group at December 31, 2021 and of its financial performance and its consolidated cash flows, for the year then ended in accordance with International Financial Reporting Standards, as adopted by the European Union (IFRS-EU), and other provisions in the regulatory framework applicable in Spain.

Basis for opinion

We conducted our audit in accordance with prevailing audit regulations in Spain. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated annual accounts section of our report.

We are independent of the Group in accordance with the ethical requirements, including those related to independence, that are relevant to our audit of the consolidated annual accounts in Spain as required by prevailing audit regulations. In this regard, we have not provided non-audit services nor have any situations or circumstances arisen that might have compromised our mandatory independence in a manner prohibited by the aforementioned requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated annual accounts of the current period. These matters were addressed in the context of our audit of the consolidated annual accounts as a whole, and in forming our audit opinion thereon, and we do not provide a separate opinion on these matters.

Tax and labor provisions and contingencies

Description As of December 31, 2021, the Group is involved in litigations of different nature, and it is exposed, in the course of its business, to possible claims, mainly related to tax and labor.

The assessment of the contingencies related to these lawsuits and claims and, when applicable, the valuation of possible related provisions, requires complex estimates by Group Management, which entails the application of judgements in determining the assumptions considered in relation to these estimates, which are, in turn, impacted by the specificities of the legislation and regulatory requirements in force in the different countries in which the Group operates.

From a tax perspective, at December 31, 2021, the Group has recognised, on the headings current and non-current provisions of the consolidated statement of financial position, provisions amounting to 126 and 0,6 million euros, respectively, primarily related to ongoing claims in Spain and Brazil. In addition, with respect to the estimation of the uncertainties associated to income tax contingencies, in accordance with the interpretation contained in the IFRIC 23, the Group has recognized, under the current tax liabilities heading of the consolidated statement of financial position, provisions related to these uncertainties for 24 million euros. Finally, the Group discloses contingencies for tax records not provisioned for an amount of 27 million euros.

Additionally, as at December 31, 2021 the Group has recognised provisions for legal risks and other contingencies amounting to 92 million euros, corresponding mainly to civil lawsuits and sanctioning files in Brazil, Spain and Chile. Likewise, the Group discloses contingencies for other possible risks not provisioned.

We have considered this area to be a Key Audit Matter, due to the complexity of the inherent judgements assigning value to the main assumptions considered, and because changes in such judgements could result in material differences in the amounts recognized to date, with a significant effect on the consolidated statement of financial position and the consolidated income statement.

Disclosures for the recognition and valuation criteria, as well as the breakdown of these provisions and contingencies, which are recognized in the long and short term, are included in Notes 21, 24, 25 and 32.15 of the accompanying consolidated annual accounts.

Our

response In relation to this area, our audit procedures included, among others, the following:

Understand the processes established by Group Management for the estimation of provisions and contingencies, including assessment of the design and implementation of relevant controls.

• Conducting interviews with the internal legal advisors and those responsible for regulatory compliance of the Group and obtaining written confirmations and reports, prepared both by Management and by its internal legal advisors and, where appropriate, external advisors, in relation to legal procedures, pending claims and potential regulatory breaches, all for the purpose of evaluating the scope and result of the analysis carried out by Management, in relation to the probability and magnitude of the associated risks as well as the determination, where appropriate, of the provisions to be recognize and the disclosures to be included in the consolidated annual accounts.
• Involve our legal and tax specialists to analyze the reasonableness of the conclusions reached by Group Management.
• Review disclosures included in the consolidated annual accounts in accordance with the applicable financial reporting framework.

Impairment of non-financial non-current assets

Description As at December 31, 2021, the Group has recognized non-current tangible and intangible assets amounting 928 million euros, of which 389 million euros, correspond to goodwill. For the purpose of assessing the impairment of non-current non-financial assets, the Group allocates such assets to the corresponding cash-generating units (CGU), which are established at a country level. The Group estimates, at least at year-end, or earlier in the case of impairment indicators being identified, the recoverable amount of each cash-generating unit considering their value in use. The determination of the recoverable amount of the assets, requires complex estimations, which entails the application of judgements in establishing the assumptions considered by Group Management in relation to those estimates. We have considered this a Key Audit Matter due to the significance of the amounts involved, and the inherent complexity of the estimation process in determining the recoverable amount of the assets. The main aspects on which the Group applies judgements in determining the related assumptions are the future margins estimate, working capital evolution, discount and growth rates, as well as the economic and regulatory conditions in the different markets in which it operates. Disclosures for the recognition and valuation criteria as well as the main assumptions used by Group Management in assessing the impairment of nonfinancial non-current assets, are included in Notes 13 and 32.9 of the accompanying consolidated annual accounts. Our response In relation to this area, our audit procedures included, among others, the following: Understand the processes established by Group Management to determine impairment of the value of non-financial non-current assets, including assessment of the design and implementation of relevant controls. Assessment of the analysis of the impairment indicators of the cash generating units performed by the Group Management.

• Review of the models used by Group Management, in collaboration with our valuation specialists, encompassing its mathematical coherence, reasonableness of the projected cash flows, discount rates and long-term growth rates, as well as the consistency of these models with the business plans approved by the Group's governing bodies. Throughout the performance of our work, we held interviews with those responsible for the preparation of the models and using renowned external sources and other available information to contrast data.
• Review of the sensitivity analysis performed by Group Management regarding the estimates performed in determining the recoverable amount in the event of changes in the relevant assumptions considered.
• Review disclosures included in the consolidated annual accounts in accordance with the applicable financial reporting framework.

Other information: consolidated director's report

Other information refers exclusively to the 2021 consolidated directors' report, the preparation of which is the responsibility of the parent company's directors and is not an integral part of the consolidated annual accounts.

Our audit opinion on the consolidated annual accounts does not cover the consolidated directors' report. Our responsibility for the consolidated directors' report, in conformity with prevailing audit regulations in Spain, entails:

• a. Checking only that the consolidated statement of Non-financial information, certain information included in the Annual Corporate Governance Report and the Annual Report on Remuneration of Directors, to which the Audit Law refers, was provided as stipulated by applicable regulations and, if not, disclose this fact.
• b. Assessing and reporting on the consistency of the remaining information included in the consolidated directors' report with the consolidated annual accounts, based on the knowledge of the Group obtained during the audit, in addition to evaluating and reporting on whether the content and presentation of this part of the consolidated directors' report are in conformity with applicable regulations. If, based on the work we have performed, we conclude that there are material misstatements, we are required to disclose this fact.

Based on the work performed, as described above, we have verified that the information referred to in paragraph a) above is provided as stipulated by applicable regulations and that the remaining information contained in the consolidated directors' report is consistent with that provided in the 2021 consolidated annual accounts and its content and presentation are in conformity with applicable regulations.

Responsibilities of the parent company´s directors and the audit committee for the consolidated annual accounts

The directors of the parent company are responsible for the preparation of the accompanying consolidated annual accounts so that they give a true and fair view of the equity, financial position and results of the Group, in accordance with IFRS-EU, and other provisions in the regulatory framework applicable to the Group in Spain, and for such internal control as they determine is necessary to enable the preparation of consolidated annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated annual accounts, the directors of the parent company are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The audit committee is responsible for overseeing the Group's financial reporting process.

Auditor's responsibilities for the audit of the consolidated annual accounts

Our objectives are to obtain reasonable assurance about whether the consolidated annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with prevailing audit regulations in Spain will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated annual accounts.

As part of an audit in accordance with prevailing audit regulations in Spain, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated annual accounts, including the disclosures, and whether the consolidated annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated annual accounts. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the audit committee of the parent company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the audit committee of the parent company with a statement that we have complied with relevant ethical requirements, including those related to independence, and to communicate with them all matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the audit committee, we determine those matters that were of most significance in the audit of the consolidated annual accounts of the current period and are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

Report on other legal and regulatory requirements

European single electronic format

We have examined the digital files of the European single electronic format (ESEF) of PROSEGUR CASH, S.A. and subsidiaries for the 2021 financial year, which include the XHTML file containing the consolidated annual accounts for the year, and the XBRL files as labeled by the entity, which will form part of the annual financial report.

The directors of PROSEGUR CASH S.A. are responsible for submitting the annual financial report for the 2021 financial year, in accordance with the formatting and mark-up requirements set out in Delegated Regulation EU 2019/815 of 17 December 2018 of the European Commission (hereinafter referred to as the ESEF Regulation). In this regard, the Annual Corporate Governance Report and the Annual Report on Remuneration of Directors have been included by reference in the consolidated directors' report.

Our responsibility consists of examining the digital files prepared by the directors of the parent company, in accordance with prevailing audit regulations in Spain. These standards require that we plan and perform our audit procedures to obtain reasonable assurance about whether the contents of the consolidated financial statements included in the aforementioned digital files correspond in their entirety to those of the consolidated financial statements that we have audited, and whether the consolidated financial statements and the aforementioned files have been formatted and marked up, in all material respects, in accordance with the ESEF Regulation.

In our opinion, the digital files examined correspond in their entirety to the audited consolidated financial statements, which are presented and have been marked up, in all material respects, in accordance with the ESEF Regulation.

Additional report to the audit committee

The opinion expressed in this audit report is consistent with the additional report we issued to the audit committee on February 25, 2022.

Term of engagement

The (ordinary/extraordinary) general shareholders' meeting held on June 3, 2019 appointed us as auditors for the Group for 3 years, commencing on December 31, 2020.

ERNST & YOUNG, S.L. (Registered in the Official Register of Auditors under No. S0530)

(Signature on the original in Spanish)

David Ruiz-Roso Moyano (Registered in the Official Register of Auditors under No. 18336)

_______________________________

February 25, 2022

I.	CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2021 AND 2020
		5
II.	CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2021 AND 2020
		6
III.	CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2021 AND 2020	7
IV.	CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2021 AND 2020
		8
V.	CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2021 AND 2020
		9
VI.	NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS AT 31 DECEMBER 2021	10
1.	General information about the Company	10
2.	Basis for Presentation	11
2.1.	Basis for presentation of the Consolidated Annual Accounts	11
2.2.	Changes in the consolidation scope	11
2.3.	Basis for valuation	13
2.4. 2.5.	Comparative information Going concern	14 14
2.6.	Estimates, assumptions and relevant judgements	14
3.	Revenue	17
4.	Cost of sales and administration and sales expenses	18
5.	Employee benefits	19
5.1.	Employee benefits expenses	19
5.2.	Employee benefits	19
6.	Other income and expenses	21
7.	Net financial expenses	22
8.	Earnings per share	23
9.	Dividends per share	23
10.	Segment reporting	24
11.	Property, Plant and Equipment	27

12.	Rights of use and lease liabilities	29
13.	Goodwill	31
14.	Other intangible assets	34
15.	Investments accounted for using the equity method	37
16.	Inventories	39
17.	Non-current financial assets	39
18.	Clients and other receivables	40
19.	Cash and cash equivalents	41
20.	Net Equity	42
21.	Provisions	48
22.	Financial liabilities	52
23.	Suppliers and other payables	55
24.	Taxation	56
25.	Contingencies	63
26.	Commitments	65
27.	Business combinations	66
27.1.	Goodwill added in 2021	66
27.2.	Goodwill added in 2020 with valuation completed in 2021	68
27.3.	Goodwill added in 2020 not reviewed in 2021	69
28.	Related parties	71
28.1.	Balances with Group companies	71
28.2. 28.3.	Transactions with Prosegur Group companies Remuneration to members of the Board of Directors and Senior Management of the	72 73
28.4.	Parent Company Information required by article 229 of the Spanish Companies Act	74
29.	Financial risk management and fair value	75
29.1.	Financial risk factors	75
29.2.	Capital risk management	80
29.3.	Financial instruments and fair value	82
30.	Other information	85
31.	Events after the reporting date	86
32.	Summary of the main accounting policies	87
32.1.	Accounting standards	87
32.2. 32.3.	Consolidation principles Consolidated income statement based on function	89 92
32.4. 32.5.	Segment reporting Foreign currency transactions	93 93

32.6.	Property, Plant and Equipment	94
32.7.	Right of use assets and lease liabilities (policy applicable as from 1 January 2019)
		95
32.8.	Intangible assets	97
32.9.	Impairment losses	99
32.10.	Financial assets	100
32.11.	Inventories	101
32.12.	Trade receivables	102
32.13.	Cash and cash equivalents	102
32.14.	Share capital and own shares	102
32.15.	Provisions	103
32.16.	Financial liabilities	103
32.17.	Current and deferred taxes	103
32.18.	Employee benefits	104
32.19.	Revenue recognition	107
32.20.	Borrowing costs	108
32.21.	Distribution of dividends	108
32.22.	Discontinued operations	108
32.23.	Environmental issues	109
32.24.	Consolidated statement of cash flows	109
32.25	Operating leases	109
32.26.	Hyperinflation	110
	APPENDIX I. – Subsidiaries within the Consolidation Scope	112
	APPENDIX II.– Breakdown of Joint Arrangements	120
	APPENDIX III.– Summary Financial Information on Joint Ventures	123
	DIRECTORS' REPORT FOR 2021	125

I. CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED 31 December 2021 AND 2020

(In thousands of Euros)

	Note	2021	2020
Revenue	3	1,518,813	1,507,517
Cost of sales	4	(1,009,495)	(1,010,936)
Gross Profit/(Loss)		509,318	496,581
Other income	6	29,134	11,538
Administration and sales expenses	4	(342,118)	(334,652)
Other expenses	6	(29,210)	(38,051)
Participation in profits/(losses) of the year, regarding investments accounted for using the equity method	15	(1,257)	(1,045)
Operating profit/(loss) (EBIT)		165,867	134,371
Financial income	7	12,279	5,410
Financial expense	7	(70,878)	(51,466)
Net financial income/(expense)		(58,599)	(46,056)
Profit/(loss) before tax		107,268	88,315
Income tax	24	(74,213)	(72,685)
Post-tax profit of ongoing operations		33,055	15,630
Consolidated profit/(loss) for the year		33,055	15,630
Attributable to:
Owners of the parent		33,158	15,892
Non-controlling interests		(103)	(262)
Proceeds per share from ongoing activities attributable to the owners of the parent company (Euro per share)
- Basic	8	0.02	0.01
- Diluted	8	0.02	0.01

II. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 December 2021 AND 2020

(In thousands of Euros)

	Note	2021	2020
Consolidated profit/(loss) for the year		33,055	15,630
Other comprehensive income:
Items that are not going to be reclassified to profit/(loss)
Actuarial gains/(losses) on defined benefit schemes	5.2	1,029	(536)
		1,029	(536)
Items that are going to be reclassified to profit/(loss)
Translation differences for foreign operations	20	13,834	(135,115)
		13,834	(135,115)
Total comprehensive income for the year, net of tax		47,918	(120,021)
Attributable to:
- Owners of the parent		48,035	(119,757)
- Non-controlling interests		(117)	(264)

III. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 DECEMBER 2021 AND 2020

	(In thousands of Euros)
--	-------------------------	--	--

	Note	2021	2020
ASSETS
Property, Plant and Equipment	11	337,935	321,984
Goodwill	13	389,133	393,009
Other intangible assets	14	200,555	189,892
Rights of use	12	78,497	72,623
Investments accounted for using the equity method	15	6,485	5,718
Non-current financial assets	17	24,116	6,252
Deferred tax assets	24	52,030	45,482
Non-current assets		1,088,751	1,034,960
Inventories	16	14,138	9,768
Clients and other receivables	18	280,175	275,253
Receivables with Prosegur Group	28	47,839	43,558
Current tax assets		48,735	53,956
Current financial assets		1,314	1,196
Cash and cash equivalents	19	250,804	401,773
Current assets		643,005	785,504
Total assets		1,731,756	1,820,464
EQUITY
Share capital	20	30,459	30,891
Share premium	20	33,134	33,134
Own shares	20	(14,282)	(18,261)
Translation differences	20	(649,038)	(662,886)
Retained earnings and other reserves	20	676,928	698,087
Equity attributed to holders of equity instruments of the Parent		77,201	80,965
Non-controlling interests		(969)	(730)
Total equity		76,232	80,235
LIABILITIES
Financial liabilities	22	716,402	826,529
Deferred tax liabilities	24	59,000	48,065
Provisions	21	126,364	114,460
Long-term lease liabilities	12	63,904	57,753
Non-current liabilities		965,670	1,046,807
Suppliers and other payables	23	363,214	326,891
Current tax liabilities		87,165	66,829
Short-term financial liabilities	22	133,523	186,552
Short-term lease liabilities	12	23,523	22,613
Payables with Prosegur Group	28	74,142	79,538
Short-term provisions	21	624	2,199
Other current liabilities		7,663	8,800
Current liabilities		689,854	693,422
Total liabilities		1,655,524	1,740,229
Total equity and liabilities		1,731,756	1,820,464

IV. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 December 2021 AND 2020

	Equity attributed to holders of equity instruments of the Parent
(In thousands of Euros)	Capital (Note 20)	Share premium (Note 20)	Translation differences (Note 20)	Own shares (Note 20)	Retained earnings and other reserves (Note 20)	Total	Non-controlling interests	Total equity
Balance at 31 December 2019	30,000	—	(167,215)	(1,546)	382,101	243,340	293	243,633
Reclassification of reserves to translation differences (Note 2.4)	—	—	(360,558)	—	360,558	—	—	—
Balance at 1 January 2020	30,000	—	(527,773)	(1,546)	742,659	243,340	293	243,633
Total comprehensive income for the year	—	—	(135,113)	—	15,356	(119,757)	(264)	(120,021)
Capital increase	891	33,134	—	—	—	34,025	—	34,025
Dividends (Note 9)	—	—	—	—	(59,928)	(59,928)	—	(59,928)
Purchase of own shares (Note 20)	—	—	—	(16,715)	—	(16,715)	—	(16,715)
Other changes	—	—	—	—	—	—	(759)	(759)
Balance at 31 December 2020	30,891	33,134	(662,886)	(18,261)	698,087	80,965	(730)	80,235
Total comprehensive income for the year	—	—	13,848	—	34,187	48,035	(117)	47,918
Capital reduction (Note 20)	(432)	—	—	16,452	(16,020)	—	—	—
Dividends (Note 9)	—	—	—	—	(30,002)	(30,002)	—	(30,002)
Purchase of own shares (Note 20)	—	—	—	(12,473)	—	(12,473)	—	(12,473)
Accrued share-based incentives (Note 21)	—	—	—	—	1,743	1,743	—	1,743
Other changes (Note 21)	—	—	—	—	(11,067)	(11,067)	(122)	(11,189)
Balance at 31 December 2021	30,459	33,134	(649,038)	(14,282)	676,928	77,201	(969)	76,232

V. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED 31 December 2021 AND 2020

	Note	2021	2020
Cash flows from operating activities
Profit for the year		33,055	15,630
Adjustments for:
Depreciation and amortisation	11, 12, 14	115,827	111,016
Loss for impairment of non-current assets	6, 13.14	18,016	27,000
Impairment losses on trade receivables and inventories	6, 19	32	3,193
Changes in provisions	22	13,177	(7,618)
Financial income (excluding hyperinflationary effect of operating profit/(loss))	7	(28,824)	(5,410)
Financial expenditure (excluding hyperinflationary effect of operating profit/(loss))		70,878	39,327
Participation in profits/(losses) regarding investments accounted for using the equity method	15	1,257	1,045
(Profit)/loss from disposals and sales of fixed assets and property investments		1,829	2,940
Income tax	25	74,213	72,685
Other income		(16,763)	—
Changes in working capital, excluding the effect of acquisitions and translation differences
Inventories		(4,409)	3,341
Clients and other receivables (includes Group companies)		(19,386)	22,590
Suppliers and other payables (includes Group companies)		42,367	11,474
Payments of provisions	22	(11,746)	(9,110)
Other current assets and liabilities		971	2,364
Cash generated from operations
Interest payments		(12,892)	(13,571)
Income tax paid		(36,531)	(39,523)
Net cash generated from operating activities		241,071	237,373
Cash flows from investing activities
Interest received		96	132
Collection/(Payments) from the sale or purchase of subsidiaries, net of cash and cash equivalents	28	34,205	(23,845)
Payments for the purchase of property, plant and equipment	11, 16	(59,734)	(65,867)
Payments for the purchase of intangible assets	14, 16	(7,491)	(3,840)
Proceeds from the sale of property, plant and equipment		—	3,803
Payments for the purchase of financial assets		(11,563)	—
Purchase and capitalisation of joint ventures	15	(1,644)	—
Net cash generated from investing activities		(46,131)	(89,617)
Cash flows from financing activities
Payments from the issue of own shares and equity instruments		(12,473)	(16,715)
Financing received		249,950	416,280
Payments from debts		(419,814)	(239,186)
Payments from lease debts		(38,320)	(29,924)
Payments from other debts		(41,942)	(84,197)
Paid dividends	9	(58,609)	(31,811)
Net cash generated from financing activities		(321,208)	14,447
Net increase/(decrease) in cash and cash equivalents		(126,268)	162,203
Cash and cash equivalents at the beginning of the year		401,773	307,423
Effect of exchange differences on cash		(24,701)	(67,853)
Cash and equivalents at the end of the year		250,804	401,773
includes:
- Cash and cash equivalents at the end of the period of ongoing operations	20	250,804	401,773

VI. NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS AT 31 December 2021

1. General information about the Company

Prosegur Cash is a business group made up of Prosegur Cash, S.A. (hereinafter 'the Company') and its subsidiaries (together, Prosegur Cash or Prosegur Cash Group) which provides services in the following countries: Spain, Portugal, Germany, Luxembourg, Argentina, Brazil, Chile, Peru, Uruguay, Paraguay, Colombia, the Philippines, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Ecuador, Mexico, India, Singapore, Indonesia and Australia.

The Company was incorporated in Madrid on 22 February 2016 and is entered in the Mercantile Register of Madrid. The registered offices of Prosegur Cash, S.A. are at Calle Santa Sabina, 8, Madrid (Spain).

On 17 March 2017, shares in Prosegur Cash, S.A. began trading in the Stock Exchanges of Madrid, Barcelona, Bilbao and Valencia via the Spanish Stock Exchange Interconnection System (electronic trading system) (SIBE). On 7 April 2017, the Green Shoe period of the stock market flotation ended, and the free float attained 27.5 % of the total share capital of Prosegur Cash S.A.

Prosegur Cash, S.A. is a subsidiary controlled by the Spanish company Prosegur Compañía de Seguridad, S.A. (hereinafter, Prosegur or the Prosegur Group), which currently owns 57.30% of its shares, indirectly controlling another 21.98% via its 100%-owned investee Prosegur Assets Management, S.L.U. Accordingly, the Prosegur Group consolidates the Prosegur Cash Group in its financial statements.

Prosegur is controlled by Gubel S.L., which was incorporated in Madrid and holds 59.37% of the shares of Prosegur Compañía de Seguridad, S.A., which consolidates Prosegur in its consolidated financial statements.

The corporate purpose of Prosegur Cash is to provide the following services through companies focusing on the Cash business: (i) national and international transport services (by land, sea and air) of funds and other valuables (including jewellery, artworks, precious metals, electronic devices, voting ballots, legal evidence), including collection, transport, custody and deposit services; (ii) processing and automation of cash (including counting, processing and packaging, as well as coin recycling, cash flow control and monitoring systems); (iii) comprehensive ATM solutions (including planning, loading, monitoring, first- and second-tier maintenance and balancing); (iv) cash planning and forecasting for financial institutions; (v) Cash-Today (including self-service cash machines, cash deposits, recycling and bank notes and coin dispensing services); (vi) added-value services in several countries (AVOS) for banks (including outsourcing of tellers, multi-agency services, cheque processing and related administrative services among others) and (vii) Correspondent banking activities (collection and payment management and payment of invoices, among others).

These Consolidated Annual Accounts were authorised for issue by the Board of Directors on 22 February 2022 and are pending approval by the shareholders at their Shareholders General Meeting. However, the Directors consider that these Consolidated Annual Accounts will be approved with no changes.

Appendix I contains detailed information on the subsidiaries of Prosegur Cash S.A. Furthermore, the Prosegur Cash Group participates in joint ventures with other parties (Note 15 and Appendix II).

2. Basis for Presentation

2.1. Basis for presentation of the Consolidated Annual Accounts

The accompanying Consolidated Annual Accounts have been prepared on the basis of the accounting records of Prosegur Cash, S.A. and its subsidiaries. The Consolidated Annual Accounts have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (hereinafter IFRS-EU) and other applicable financial reporting regulations to provide a fair view of the consolidated equity and consolidated financial position of Prosegur Cash, S.A. and subsidiaries at 31 December 2021, as well as the consolidated profit and loss from its operations and consolidated cash flows for the year then ended. The Consolidated Annual Accounts are filed yearly in the Mercantile Register of Madrid.

Note that these Annual Accounts omit such information or breakdowns that, not requiring details because of their qualitative importance, have been considered not material or not relatively important in accordance with the concept of Materiality or Relative Importance defined in the conceptual framework of IFRS-EU.

2.2. Changes in the consolidation scope

The most significant changes in the consolidation scope in 2021 are detailed below.

The following companies were incorporated in 2021:

• In August 2021, Dinero Gelt SAS was incorporated in Colombia.
• In December 2021, Prosegur Exchange Pty Limited was incorporated in Australia.

The following companies were wound up in 2021:

– In January 2021, Garantis Sumarmas, S.L. was wound up in Spain.

During April 2021 the dormant company Dinero Gelt México S.A. de C.V. was acquired in Mexico.

On 31 March 2021, Prosegur Cash sold to its parent company, Prosegur Compañía de Seguridad, certain areas of the added value outsourcing processes and services business (AVOS) for financial institutions and insurance companies, as well as the associated technology.

The transaction is in response to the strategic decision, independently taken by Prosegur Cash to better achieve its business goals, to crystallise the current value of the business sold, freeing up resources and investment capacity to focus on other priority growth opportunities.

The transaction consisted of the sale of Prosegur Cash to Prosegur of 100% of the share capital of the holding company of the aforementioned business in Spain, Prosegur AVOS España, S.L.U., for a price of EUR sixty seven million less the net financial debt. This business represents, approximately, 85% of the operating profit/(loss) of the global business of Prosegur Cash in certain areas of activity, with the parties having agreed to jointly and in good faith analyse and explore the possibility of Prosegur Cash selling to Prosegur the rest of that business that it currently carries out in other countries, without there being any agreement on this.

The transaction has been reviewed by the Prosegur Cash Audit Committee which has confirmed that it is fair and reasonable from the Company's point of view and from the various Prosegur shareholders. For its part, KPMG has issued a fairness opinion for the Board of Directors of Prosegur Cash confirming that the aforementioned sales price is reasonable in financial terms for Prosegur Cash.

In light of the above, to adapt the Framework Agreement on relations between Prosegur and Prosegur Cash of 17 February 2017 to the new reality in terms of the development of the aforementioned added value outsourcing processes and services business (AVOS) for financial institutions and insurance companies, the parties have signed a non-extinguishing modifying novation contract of the Framework Agreement.

The cash and cash equivalents that were sold with the companies amounted to EUR 9,617 thousand. The net assets of the companies at the time of sale amounted to EUR 41,838 thousand. The sale entailed an expense for the Group of EUR 20,324 thousand included under the heading 'Other expenses' (Note 6).

The net assets of the added value outsourcing processes and services (AVOS) business as of 31 March 2021 were as follows:

	Note	Thousands of Euros
ASSETS
Property, Plant and Equipment	11	5,415
Goodwill	13	20,605
Rights of use	12	546
Other intangible assets	14	19,897
Non-current financial assets		190
Deferred tax assets		134
Non-current assets		46,787
Clients and other receivables		9,749
Receivables with Prosegur Group		1,696
Cash and cash equivalents		9,617
Current assets		21,062
Total assets		67,849
LIABILITIES
Financial liabilities	22	5,041
Long-term lease liabilities	12	375
Deferred tax liabilities		4,036
Provisions	21	841
Non-current liabilities		10,293
Suppliers and other payables		7,267
Current tax liabilities		698
Financial liabilities		4,387
Short-term lease liabilities	12	221
Payables with Prosegur Group		3,145
Current liabilities		15,718
Total liabilities		26,011

Additionally, other changes to the consolidation scope in 2021 are acquisitions of subsidiaries, details of which are provided in Note 27.

2.3. Basis for valuation

These Consolidated Annual Accounts were prepared on the historical cost basis with the following exceptions, where appropriate:

• Hyperinflation: As a result of considering Argentina as a hyperinflationary economy, the balances of the Argentine companies in the Prosegur Cash Group are expressed at current cost before being included in the consolidated financial statements.
• The assets, liabilities and contingencies acquired in business combinations are recognised at fair value.

Moreover, the Prosegur Cash Group opted to measure its assets and liabilities in its first Consolidated Annual Accounts in accordance with IFRS-EU for the year ended 31 December 2017, considering the carrying amounts included in the Consolidated Annual Accounts of the Prosegur Group, eliminating the consolidation adjustments performed by the latter, and consequently Prosegur Cash adopted the same options under IFRS 1 as those chosen by the Parent Company.

2.4. Comparative information

The consolidated statement of financial position, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of cash flows, consolidated statement of changes in equity and the notes to the consolidated annual accounts for 2021 include comparative figures for the previous year.

As a consequence of the IFRIC decision agenda taken in 2020, the Prosegur Cash Group changed the presentation it had previously made of the translation differences of the business in Argentina, which had been considered reserves. In its agenda decision, the IFRIC clarified that the effects of the inflation corrected in IAS 29 in the equity located in the country affected by hyperinflation (excluding the part of the net monetary position that directly affects profit/(loss)) has a currency effect similar to the one that arises when converting the country's financial statements to the presentation currency, whereby both concepts should be reflected in translation differences.

Likewise, the IFRIC clarified that in the first application of IAS 29, the treatment should be the same as that explained above and with retroactive effect and therefore present the effects in accumulated translation differences, though separating the part of inflation corresponding to the net monetary position, which should be presented in reserves.

In application of all the above, the Group proceeded to reclassify the treatments that it had carried out directly against reserves in previous years for an amount of EUR 360,558 thousand between translation differences and reserves in the year 2020 and cumulatively, without modifying the comparative presentation of said periods.

2.5. Going concern

As of 31 December 2021, the Cash Group has a positive working capital of EUR 46,849 thousand (EUR 92,082 thousand negative working capital at 31 December 2020). At 31 December 2021, the Cash Group:

• Presents a consolidated profit(loss) of EUR 33,055 thousand.
• The Group has available cash in an amount of EUR 250,804 thousand (2020: EUR 401,773 thousand) (Note 19), and
• Cash flows from operating activities in 2021 amounted to EUR 241,071 thousand (2020: EUR 237,373 thousand);

Taking these facts into consideration, the Company Board of Directors has prepared these consolidated Annual Accounts following the going-concern principle.

2.6. Estimates, assumptions and relevant judgements

The preparation of the Consolidated Annual Accounts in accordance with IFRS-EU requires the application of relevant accounting estimates and the undertaking of judgements, estimates and assumptions in the process for application of the Prosegur Cash accounting policies and measurement of the assets, liabilities and profit and loss.

Although estimates are calculated by Prosegur Cash's Board of Directors based on the best information available at year end, future events may require changes to these estimates in subsequent years. Any effect on the Consolidated Annual Accounts of adjustments to be made in subsequent years would be recognised prospectively, where appropriate.

Accounting estimates and assumptions

Information on relevant accounting estimates, assumptions and judgements in applying the accounting policies for the years 2021 and 2020, that pose a significant risk of causing material adjustments in the year ended on 31 December 2021, are included in the following notes:

• Business combinations: determination of the interim fair values and related goodwill (Notes 27 and 32.2).
• Impairment of property, plant and equipment, intangible assets, goodwill and right of use assets: assumption for the calculation of recoverable amounts (Notes 11, 12, 13, 14, 32.6, 32.7, 32.8 and 32.9).
• Impairment of financial assets: Calculated based on the expected loss (Note 18).
• Recognition and valuation of provisions and contingencies: assumptions used to determine the probability of occurrence and the estimate amounts of resource outflows (Notes 21, 25 and 32.15).
• Recognition and valuation of the defined benefit schemes for employees: actuarial hypotheses for the provision of defined benefit schemes for employees (Notes 5.2, 21 and 32.18).
• Recognition and valuation of deferred tax assets: estimates and assumptions used to measure the recoverability of tax credits (Notes 24 and 32.17).

Relevant judgements

Information on judgements made in applying Prosegur Cash accounting policies with a significant impact on the amounts recognised in the consolidated financial statements is included in the following notes:

• Consolidation: control determination (Note 32.2).
• Leases: lease classification (Note 32.7).

Determination of fair values

Certain Prosegur Cash accounting policies and details require the determination of fair values for assets and liabilities, financial as well as non-financial.

Prosegur Cash has established a control framework with respect to determining fair values. This framework includes a financial team, reporting directly to Financial Management, with general responsibility over the supervision of all relevant fair value calculations.

On a regular basis the financial team reviews significant unobservable criteria and valuation adjustments. If third-party information is utilised in determining fair values, such as price-fixing or broker quotations, the financial team verifies the fulfilment of such information with the IFRS-EU and the level of fair value in which such valuations should be classified.

Significant valuation issues are reported to the Prosegur Cash Audit Committee.

In determining the fair value of an asset or liability, Prosegur Cash uses observable market data to the greatest extent possible. Fair values are classified into different levels of fair value on the basis of the input data used in the measurement techniques, as follows:

– Level 1: quoted price (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If such input data that are used to measure the fair value of an asset or liability may be classified into different levels of fair value, the fair value measurement is classified in its entirety into the same level of fair value, corresponding to the significant input data level for the complete measurement presented by the lower Level.

Prosegur Cash recognises transfers among levels of fair value at the end of the period in which the change has taken place.

The following Notes contain more information on the assumptions used in determining fair values:

• Note 27: Business combinations.
• Note 29.3: Financial instruments and fair value.

Climate change

These consolidated annual accounts have been prepared taking into account the provisions of the informative document issued by the International Accounting Standards Board (IASB) in November 2020, which included information requirements in relation to climate change.

The Cash Group has a medium- and long-term commitment to reduce emissions, for which it has defined main lines of action such as policies for clean energy supplies and changing its property, plant and equipment to others of lower emissions.

These measures do not entail the need to make significant investments at the current time, so did not have a significant impact in accounting terms on the Group's consolidated financial statements during 2021 and previous years.

On the other hand, the Management believes that, as a consequence of the development of this commitment:

• The useful life of tangible fixed assets will not be affected, since their accelerated replacement is not necessary;
• No signs of impairment have been detected as a result of the aforementioned commitment;

For all of the above, at the time of preparing these annual accounts, there is no obligation that could give rise to an environmental provision.

COVID-19

Almost two years have passed since COVID-19 was declared a pandemic, and the Cash Group observes that although the progress of vaccination is uneven in the places where it operates, the health restrictions that directly impact economic activity and trade have been gradually reduced.

During the 2021 financial year, economic activity was gradually recovering, bringing several areas back to pre-pandemic business volumes.

In this context, the Cash Group continues to assess the impacts of COVID-19 on the consolidated financial statements. As of 31 December 2021, they are as follows:

– Liquidity risk: In 2020 and on the basis of a prudent approach in light of the uncertainty caused by COVID-19, the Group drew down EUR 155,000 thousand from its credit facilities associated with the syndicated financing facility in the amount of EUR 300,000 thousand. At

31 December 2021, the Cash Group has an unused balance of the credit facilities associated with the syndicated financing facility. (Note 22).

• Operational risk: While in some regions business levels returned to pre-pandemic levels in 2021, the Cash Group continues its cost containment policies in an effort to mitigate the impact of COVID-19 (Note 2.5) (Notes 5 and 6).
• Risk of measurement of assets and liabilities on the balance sheet: Analysis of indicators of impairment in non-financial assets, with impacts on those CGUs where government restrictions have been more severe (Note 13). Revision of projections for deferred tax asset recovery (Note 24), with no significant impact.
• Credit risk: The Group Cash has complied with the applicable Covenants at the end of the year. In addition, the loss models expected as a result of the impact of the pandemic, with non-significant impacts have been evaluated and reviewed (Note 18).
• Review of employee remuneration for long-term incentive plans, with a specific impact on the 18-20 Plan approved for the Cash Group Executive Chairman, Managing Director and Management (Note 21).
• Board of Directors analysis of exceptional circumstances that justify the resolved distribution of dividends, regardless of the situation of uncertainty caused by the COVID-19 pandemic (Note 9).
• Analysis of contractual clauses, as a measure to prevent potential additional impacts.

3. Revenue

Revenue was obtained solely through the services provided.

Thousands of Euros	2021	2020
Provision of services	1,518,813	1,507,517
Total revenue	1,518,813	1,507,517

See Note 10 for further information on revenue by geographical area. See Note 32.19 for a description of the Prosegur Cash Group's policy for recognising revenue.

4. Cost of sales and administration and sales expenses

The main cost of sales and administration and sales expenses are as follows:

Thousands of Euros	2021	2020
Supplies	42,438	39,351
Employee benefits expenses (Note 5)	688,738	699,677
Operating leases and associated expenses (Note 12)	8,053	10,000
Supplies and external services	138,917	121,981
Depreciation and amortisation	44,693	44,587
Other expenses	86,656	95,340
Total cost of sales	1,009,495	1,010,936

Thousands of Euros	2021	2020
Supplies	1,345	1,114
Employee benefits expenses (Note 5)	97,909	107,729
Operating leases and associated expenses (Note 12)	2,883	8,338
Supplies and external services	53,578	51,739
Depreciation and amortisation	71,134	66,429
Other expenses	115,269	99,303
Total administration and sales expenses	342,118	334,652

While in some regions business levels returned to pre-pandemic levels in 2021, the Cash Group continues its cost containment policies in an effort to mitigate the impact of COVID-19 (Note 2.6)

The heading Other expenses, under administration and sales expenses, includes expenses for management support services and trademark usage expenses totalling EUR 92,127 thousand (2020: EUR 82,626 thousand), (Note 28).

The decrease in employee benefits expenses, included under total cost of sales, is due to the net impact of COVID-19 (Note 2.6) and to the new business combinations (Notes 27 and 2.2).

The heading on supplies and external services includes costs for repairs to items of transport, counting machines, and operating subcontracts to third parties and other advisors such as attorneys, auditors and consultants.

The heading on operating leases and associated expenses includes the lease costs that are not recognised as a right of use because they are exempt from that recognition as short-term contracts and contracts whose underlying asset is insignificant, as well as the expenses associated with those leases (Note 32.7).

5. Employee benefits

5.1. Employee benefits expenses

Details of the employee benefits expense are as follows:

Thousands of Euros	2021	2020
Wages and salaries	601,254	605,804
Social Security expenses	138,590	142,375
Other employee benefits expenses	23,909	23,132
Indemnities	22,894	36,095
Total employee benefits expenses	786,647	807,406

While in some regions business levels returned to pre-pandemic levels in 2021, the Cash Group continues its cost containment policies in an effort to mitigate the impact of COVID-19 (Note 2.6)

The accrual of the long-term incentive associated with the 18-20 Plan, 21-23 Plan and the Retention Plan for the Executive President, Managing Director and the Management of Cash Group is included under the heading on wages and salaries (Notes 21 and 32.18).

During 2021 the total impact of Cash Group incentives on the income statement increased to a greater expense of EUR 5,173 thousand. During the 2020 financial year, the positive impact on the income statement amounted to EUR 2,465 thousand (Note 21).

5.2. Employee benefits

The Cash Group contributes to various defined benefit schemes in Germany, Brazil, Honduras, Nicaragua, El Salvador, Ecuador and Mexico. The defined benefit scheme comprising postemployment healthcare offered to employees in Brazil is compliant with local legislation (Act 9656). The Mexico defined benefit scheme consists of seniority bonuses; the defined benefit schemes in Germany and Ecuador consist of retirement awards; while the pension plans in Nicaragua, El Salvador and Honduras consist of severance compensation.

In 2021, the amount recognised as higher employee benefits expenses in the consolidated income statement under the heading cost of sales and administration and sales expenses came to an expense of EUR 1,494 thousand (a lower expense of EUR 357 thousand in 2020).

The movement of the current value of the obligations is shown in the following table:

Thousands of Euros	2021	2020
Balance at 1 January	12,939	10,632
Business combination	—	7,157
Net Expense/(Income) for the year	1,494	(357)
Contributions to scheme	(780)	(955)
Actuarial Loss/(Profit)	(1,029)	536
Workforce transfer	336	—
Exit from the scope	—	(1,177)
Translation differences	705	(2,897)
Balance at 31 December	13,665	12,939

During 2021 the positive impact on equity arising from actuarial gains amounted to EUR 1,029 thousand (negative impact of EUR 536 thousand in 2020).

The breakdown by country of actuarial losses at 31 December is the following:

Thousands of Euros	2021	2020
Brazil	4,973	4,960
Germany	372	548
Mexico	50	46
Ecuador	8,150	7,276
Central America	120	109
	13,665	12,939

At 31 December 2021, the defined benefit schemes in Brazil involved 10,526 employees (11,144 employees in 2020). The Germany plan involved 3 employees at 31 December 2021 (3 employees in 2020). The Mexico plan involved 14 employees (14 employees in 2020). The Central America plans involved 617 employees at 31 December 2021 (819 employees in 2020). The Ecuador plans involved 1,337 employees at 31 December 2021 (1,576 employees in 2020).

The breakdown of actuarial assumptions used to calculate the current value of the main obligations pursuant to the defined benefit schemes in Brazil, Ecuador, Germany, Mexico and Central America is as follows:

	Brazil		Germany		Mexico		Nicaragua		Honduras		El Salvador		Ecuador
	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Inflation rate	3.3%	3.3%	1.8%	1.8%	3.5%	3.5%	5.0%	5.0%	4.0%	4.0%	3.0%	2.0%	3.0%	3.0%
Annual discount rate	5.4%	3.8%	0.6%	0.6%	9.5%	8.5%	11.0%	10.3%	6.6%	6.6%	3.6%	3.0%	8.6%	8.2%

The age factor assumed in the Brazil benefits plan according to the experience of the Prosegur Cash Group is as follows:

• 0 to 5 Minimum Wages = 16.97%

• 5 to 10 Minimum Wages = 14.29%

• More than 10 Minimum Wages = 11.42%

The mortality tables used in determining the defined benefit obligations were as follows:

Brazil		Germany			Mexico		Central America	Ecuador
2021	2020		2021 2020		2021 2020		2021 2020		2020
AT 2000 reduced by 10% itemised per gender	AT 2000 reduced by 10% itemised per gender	Heubeck Richttafeln 2018 G	Heubeck Richttafeln 2018 G	Mexican Social Security Experience for Assets 2009	Mexican Social Security Experience for Assets 2009	100% of the securities in Watson Wyatt Worldwide and GAM83	100% of the securities in Watson Wyatt Worldwide	TM IESS 2002	TM IESS 2002

The variables in the defined benefit schemes that expose the Prosegur Cash Group to actuarial risks are as follows: future mortality rate, medical cost trend, inflation, retirement age, discount rate and market.

6. Other income and expenses

Other expenses

Details of other expenses are as follows:

Thousands of Euros	2021	2020
Loss/reversals for impairment of receivables (Note 18)	(32)	(3,193)
Loss for impairment of non-current assets (Note 13 and 14)	(18,106)	(27,000)
Net profit/(loss) on disposal of fixed assets	(1,829)	(2,940)
Other expenses	(9,243)	(4,918)
Total other expenses	(29,210)	(38,051)

The change in impairment losses on receivables is a result of the decrease in credit risks that arose in 2020 due to the COVID-19 pandemic (Note 2.6)

The section on impairment losses on non-current assets includes the impairment losses on goodwill in Australia recorded after checking the recoverable values of each of the CGUs in relation to their net carrying amount (Note 13). In 2020, it included the impairment losses on goodwill and intangible assets in Australia (Note 13 and 14).

The section on losses on the disposal of fixed assets includes losses associated with disposals of property, plant and equipment, which correspond mainly to Spain. In 2020, it includes losses associated with Spain and Brazil.

The item 'Other expenses' mainly includes losses for updates to outstanding amounts in business combinations in LatAm, made in previous years.

In 2020, the item 'Other expenses' included expenses for the divestment of Mexico, whose amount was EUR 1,041 thousand.

Other income

Thousands of Euros	2021	2020
Other income	29,134	11,538
Total other income	29,134	11,538

The item 'Other income' in 2021 mainly includes the sale to the Prosegur Group in March 2021 of certain areas of the added-value outsourcing services business (AVOS) for financial institutions and insurance companies, as well as its associated technology, for EUR 20,324 thousand (Note 2.2).

Moreover, the item 'Other income' in 2021 includes profits for updates to outstanding amounts in business combinations in LatAm, made in previous years. The item 'Other income' in 2020 mainly included extraordinary income from insurance.

7. Net financial expenses

Details of the net financial expenses are as follows:

Thousands of Euros	2021	2020
Borrowing costs:
- Bank borrowings	(7,284)	(10,297)
- Debentures and other negotiable securities	(8,250)	(8,250)
- Financial expenses for the update of lease liabilities (Note 12)	(5,549)	(5,703)
	(21,083)	(24,250)
Interest received:
- Loans and other investments (includes Group companies)	1,401	1,303
	1,401	1,303
Other profit/(loss)
Net (loss)/profit on foreign currency transactions	(39,172)	(8,789)
Net financial (expense)/income from the net monetary position	6,860	(2,331)
Other financial income	4,018	4,107
Other financial expenses (includes Group companies)	(10,623)	(16,096)
	(38,917)	(23,109)
Net financial expenses	(58,599)	(46,056)
Total financial Income	12,279	5,410
Total financial expense	(70,878)	(51,466)
Net financial expenses	(58,599)	(46,056)

The main change in the financial profit/(loss) at 31 December 2021 compared to December 2020 is due primarily to the net effect of:

• Increase in losses from transactions in foreign currency other than the functional one, mainly caused by Brazil and Argentina.
• A financial income deriving from the net monetary position that amounts to EUR 6,860 thousand; at December 2020 the item recorded expense in the amount of EUR 2,331 thousand. That item reflects the exposure to the change in the purchasing power of the Argentine currency.
• A reduction of expenses in bank borrowings, owing mainly to a decreased drawdown of the syndicated credit facility in Spain.
• A reduction of expenses in other financial expenses, owing mainly to a lower impact on the update of tax provisions.
• A reduction in financial expenses for the update of lease liabilities that amount to EUR 5,549 thousand (EUR 5,703 thousand in 2020) (Note 12).

The item 'credits and other investments' includes the results of investments of surplus cash, mainly in Brazil and Argentina.

Financial income and expenses with Prosegur Group companies amount to EUR 248 thousand and EUR 1,744 thousand, respectively (2020: EUR 411 thousand and EUR 1,380 thousand, respectively). Financial expenses with Prosegur Group companies include those arising from the updating of lease liabilities with group companies.

On the other hand, interest expenses on obligations and other negotiable securities remain in line as a result of the issuance of bonds in the nominal amount of EUR 600,000 thousand (Note 22).

All other income and expenses from interest arise from financial assets and liabilities measured at amortised cost.

The heading other financial income and expenses mainly includes the financial updates, as the result of calculating the amortised cost of the debt, as well as deposits in court, associated to the labour actions open in Brazil (Note 21), as well as the financial updating of tax contingencies, mainly in Brazil and the financial updating of deferred payments on business combinations taking place in the different countries (Note 27).

At 31 December 2021 and 2020, Prosegur Cash has no derivative financial instruments.

8. Earnings per share

Basic

Basic earnings per share are calculated by dividing the profit for the year attributable to the owners of the parent by the weighted average number of ordinary shares outstanding during the year (Note 20).

Euros	2021	2020
Year profit attributable to the owners of the parent company	33,156,873	15,891,325
Weighted average ordinary shares in circulation	1,512,846,829	1,508,972,371
Basic earnings per share	0.0219	0.0105

Diluted

Diluted earnings per share are calculated by adjusting the profit for the year attributable to the owners of the parent and the weighted average number of ordinary shares outstanding for all the inherent diluting effects of potential ordinary shares.

The Parent Company has no potentially diluting effects.

9. Dividends per share

On 20 December 2021, the Board of Directors approved an interim dividend amounting to EUR 30,002 thousand, i.e. EUR 0.0197 per share. This dividend will be paid to shareholders in four payments of EUR 7,501 thousand each, at a rate of 25%, in January, April, July and October 2022.

The Board of Directors, considering the situation of uncertainty caused by the COVID-19 pandemic and the resulting drop in consolidated net profit during 2020 and 2021, has determined that exceptional circumstances exist that justify a distribution of dividends in the aforementioned amount.

The provisional accounting statement presented by the Board of Directors in accordance with the legal requirements that evidenced sufficient liquidity to pay the aforementioned interim dividend is set forth below:

	Thousands of
	Euros 2021
1. Initial cash on hand (before the interim dividend)	(50,563)
2. Group current bank account balances	(10,490)
3. Current proceeds	—
4. Temporary financial investments	643
5. Receipts for Capital and Extraordinary Transactions	356,745
6. Payments for Current Operations	(3,882)
7. Payments for Financial Transactions	(1,430)
8. Extraordinary Payments	(221)
Forecast Cash	290,802
Less dividend payments according to the proposal	(30,002)
Final cash after dividends	260,800

10. Segment reporting

The Board of Directors is ultimately responsible for making decisions on Prosegur Cash's operations and, together with the Audit Committee, for reviewing Prosegur Cash internal financial information to assess performance and to allocate resources.

The Board of Directors analyses the business by region.

The main segments are identified in geographic terms as follows:

• Europe, which includes the following countries: Spain, Germany and Portugal.
• Rest of the world (AOA), which includes the following countries: Australia, Indonesia, India and The Philippines.
• LatAm, which includes the following countries: Argentina, Brazil, Ecuador, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Guatemala, Nicaragua, Costa Rica, El Salvador and Honduras.

The regions are a pivotal axis for the organisation and are represented in the General Regional Business Areas, which are in charge of commercial negotiations, as well as designing the services required by each client, covering all business lines in each region. Segments are defined in accordance with the organisational structure and based on the similarities between both macroeconomic and commercial markets and market operations, as well as on the basis of the commercial negotiations between countries in each region.

The Cash Group has a broad portfolio of global clients which permits regional, rather than national, negotiations. Consequently, segmentation by region is the best way to manage at EBITA level, and this is compatible with decision-making at more granular levels based on business indicators.

The following ratios are used in segment reporting:

– EBITDA: Consolidated profit/(loss) before depreciation and amortisation, financial income/(expense), corporate income tax and earnings from discontinued operations.

• EBITA: consolidated profit/(loss) before amortisation, financial income/(expense), corporate income tax and earnings from discontinued operations.
• EBIT: Consolidated profit/(loss) before financial income/(expense), corporate income tax and earnings from discontinued operations.
• Consolidated profit/(loss) for the year: Consolidated profit after taxes.

The Board of Directors uses EBITA to assess segment performance, since this indicator is considered to best reflect the results of the Cash Group's different activities.

The Cash Group is not highly dependent on any particular clients (Note 29.1).

Total assets allocated to segments exclude other current and non-current financial assets and or cash and cash equivalents, as these are managed together by the Cash Group and include rights of use that have emerged as a result of the application of IFRS 16.

The total liabilities assigned to segments exclude debts with credit institutions as Prosegur Cash jointly handles the financing, and they include lease liabilities arising from the application of IFRS 16.

The breakdown of revenue, EBITA and net profit, by segment

Details of revenues by segment are as follows:

	Europe		AOA		LatAm		Total
Thousands of Euros	2021	2020	2021	2020	2021	2020	2021	2020
Revenue	399,597	436,115	109,710	98,868	1,009,506	972,534	1,518,813	1,507,517
% of total	26%	29%	7%	7%	67%	64%	100%	100%
Total Sales	399,597	436,115	109,710	98,868	1,009,506	972,534	1,518,813	1,507,517

Details of EBITA and profit/(loss) after tax from ongoing operations broken down by segment are as follows:

	Europe		AOA		LatAm		Total
Thousands of Euros	2021	2020	2021	2020	2021	2020	2021	2020
Sales	399,597	436,115	109,710	98,868	1,009,506	972,534	1,518,813	1,507,517
Other net expenses	(352,001)	(403,742)	(109,195)	(104,647)	(757,817)	(726,741)	(1,219,013)	(1,235,130)
EBITDA	47,596	32,373	515	(5,779)	251,689	245,793	299,800	272,387
PPE depreciation	(25,312)	(27,479)	(15,099)	(9,225)	(54,438)	(50,689)	(94,849)	(87,393)
EBITA	22,284	4,894	(14,584)	(15,004)	197,251	195,104	204,951	184,994
Amortisation of intangible assets	(1,327)	(2,541)	(2,926)	(4,643)	(16,725)	(16,439)	(20,978)	(23,623)
Amortisation and depreciation in the year	—	—	(18,106)	(27,000)	—	—	(18,106)	(27,000)
Operating profit/(loss) (EBIT)	20,957	2,353	(35,616)	(46,647)	180,526	178,665	165,867	134,371
Net financial expenses	(12,323)	(16,477)	(3,429)	(5,388)	(42,847)	(24,191)	(58,599)	(46,056)
Income tax	(6,044)	(8,956)	3,639	465	(71,808)	(64,194)	(74,213)	(72,685)
Post-tax profit of ongoing operations	2,590	(23,080)	(35,406)	(51,570)	65,871	90,280	33,055	15,630

There is no profit/(loss) that has not been allocated to a segment. Segment income and expenses are composed by those deriving from the operating activities directly attributable to them and that the Board of Directors considers reasonable and which are distributed by using an analytical distribution criterion.

	Europe		AOA		LatAm		Total
	2021	2020	2021	2020	2021	2020	2021	2020
National and international Shipping and Custody of Valuable Goods:	213,345	220,428	67,137	60,759	556,244	591,395	836,726	872,582
% of total	53.4 %	50.6 %	61.2 %	61.5 %	55.1 %	60.8 %	55.1 %	57.9 %
Cash Management	118,979	116,596	22,963	25,210	214,591	210,582	356,533	352,388
% of total	29.8 %	26.7 %	20.9 %	25.5 %	21.3 %	21.7 %	23.5 %	23.4 %
New Products	67,273	99,091	19,610	12,899	238,670	170,557	325,553	282,547
% of total	16.8 %	22.7 %	17.9 %	13.0 %	23.6 %	17.5 %	21.4 %	18.8 %
	399,597	436,115	109,710	98,868	1,009,505	972,534	1,518,812	1,507,517

Details of revenues by activity are as follows:

The services provided by the Cash Group via its subsidiaries are classified in the following business lines within the geographic segments:

• Transport: transport in armoured vehicles and custody in the Group's vaults of funds and securities, as well as valuables such as jewellery, works of art, precious metals, electronic devices, ballot papers and legal evidence.
• Cash management: preparation of bank notes and coins for recirculation according to national legislation and Central Bank requirements. Included are processing, packaging and recycling of bank notes.
• Outsourcing: comprising various products, including mainly:
  • Cash cycle management, from planning cash needs in ATMs, minimising the finance and logistical cost, and ensuring the availability of cash, to loading cash into ATMs in the denominations requested and balancing the cash data present in the ATM at the time of its loading, with ATM slips printout.
  • Comprehensive Cash-Today management in the front office or back office (internal personnel management) at retail clients. This includes parts of cash management and transport and custody but they are included in the package.
  • Correspondent banking activities: collection and payment management and payment of invoices.

The distribution of assets by segment

The distribution of assets by segment is as follows:

	Europe		AOA		LatAm		Not allocated to segments		Total
Thousands of Euros	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Non-current assets allocated to segments	245,716	291,926	108,438	131,607	1,001,917	889,469	100,765	99,437	1,456,836	1,412,439
Other non-allocated assets	—	—	—	—	—	—	274,920	408,025	274,920	408,025
Other non-current financial assets	—	—	—	—	—	—	24,116	6,252	24,116	6,252
Cash and cash equivalents	—	—	—	—	—	—	250,804	401,773	250,804	401,773

The heading of 'Non-current assets allocated to segments' that has not been allocated to segments includes deferred tax assets and current tax assets.

The distribution of liabilities by segment

Details of liabilities allocated to segments and a reconciliation with total liabilities are as follows:

	Europe		AOA		LatAm		Not allocated to segments		Total
Thousands of Euros	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Liabilities allocated to segments	256,977	207,227	144,713	164,502	333,308	313,580	146,165	114,897	881,163	800,206
Other non-allocated liabilities	—	—	—	—	—	—	774,361	940,023	774,361	940,023
Bank borrowings	—	—	—	—	—	—	774,361	940,023	774,361	940,023

The heading of 'Liabilities allocated to segments' that has not been allocated to segments includes deferred tax liabilities and current tax liabilities.

The heading of 'Other unallocated liabilities' includes bank borrowings that cannot be allocated, mainly corporate bonds.

11. Property, Plant and Equipment

Details and movement of property, plant and equipment are as follows:

Thousands of Euros	Land and buildings	Technical installations and machinery	Other installations and furniture	Armoured vehicles and other property, plant and equipment	Advances and work in progress	Total
Cost
Balance at 01 January 2020	42,975	190,687	217,287	305,959	27,798	784,706
Translation differences	(6,401)	(25,064)	(38,739)	(37,122)	(5,700)	(113,026)
Business combinations (Note 27)	7,987	954	8,020	5,539	59	22,559
Additions	698	17,600	10,492	9,101	27,976	65,867
Disposals	(256)	(5,936)	(1,027)	(6,243)	(1,777)	(15,239)
Exit from the scope	—	(1,786)	(7,395)	(8,034)	(332)	(17,547)
Transfers	402	4,122	7,568	10,073	(22,165)	—
Balance at 31 December 2020	45,405	180,577	196,206	279,273	25,859	727,320
Translation differences	11,310	3,541	7,079	12,497	(268)	34,159
Business combinations (Note 27)	1,411	—	1,768	903	—	4,082
Additions	3,936	12,636	9,400	8,028	25,734	59,734
Disposals	(1,235)	(4,632)	(7,151)	(5,760)	(1,590)	(20,368)
Exits from the scope (Note 2)	(425)	(709)	(8,186)	(2,743)	—	(12,063)
Transfers	1,545	11,485	5,286	5,983	(24,299)	—
Balance at 31 December 2021	61,947	202,898	204,402	298,181	25,436	792,864

Thousands of Euros	Land and buildings	Technical installations and machinery	Other installations and furniture	Armoured vehicles and other property, plant and equipment	Advances and work in progress	Total
Depreciation and impairment losses
Balance at 01 January 2020	(5,338)	(94,808)	(106,002)	(233,176)	—	(439,324)
Translation differences	789	10,179	22,341	33,514	—	66,823
Disposals	142	2,166	320	5,868	—	8,496
Transfers	—	(136)	(501)	637	—	—
Depreciation and amortisation for the year	(885)	(15,340)	(17,673)	(19,205)	—	(53,103)
Exit from the scope	—	1,143	4,566	6,063	—	11,772
Balance at 31 December 2020	(5,292)	(96,796)	(96,949)	(206,299)	—	(405,336)
Translation differences	(1,540)	61	(5,995)	(7,700)	—	(15,174)
Disposals	60	3,177	6,374	5,466	—	15,077
Transfers	(107)	(123)	626	(396)	—	—
Depreciation and amortisation for the year	(944)	(17,321)	(17,720)	(20,159)	—	(56,144)
Exits from the scope (Note 2)	10	708	4,392	1,538	—	6,648
Balance at 31 December 2021	(7,813)	(110,294)	(109,272)	(227,550)	—	(454,929)
Carrying amount
At 01 January 2020	37,637	95,879	111,285	72,783	27,798	345,382
At 31 December 2020	40,113	83,781	99,257	72,974	25,859	321,984
At 01 January 2021	40,113	83,781	99,257	72,974	25,859	321,984
At 31 December 2021	54,134	92,604	95,130	70,631	25,436	337,935

At 31 December 2021, the additions recorded in property, plant and equipment amount to EUR 59,734 thousand, and correspond mainly to cash automation equipment fitted in clients premises and purchasing of and fitting-out work on bases and armoured vehicles in Spain, Brazil, Australia and Argentina.

At 31 December 2020, the additions recorded in property, plant and equipment amounted to EUR 65,867 thousand, and corresponded mainly to cash automation equipment fitted in clients premises and purchasing of and fitting-out work on bases and armoured vehicles in Spain, Brazil and Argentina.

The heading Advances and work in progress, at the end of 2021, includes mainly advances for works in Brazil, Argentina and Paraguay, amounting to EUR 4,277 thousand, advances for machinery in Brazil, Chile, Colombia, Spain and Peru, amounting to EUR 14,789 thousand, and refurbishments at facilities in Australia, Colombia and Brazil, amounting to EUR 6,138 thousand.

The heading Advances and work in progress, at the end of 2020, included mainly advances for work on armoured vehicles in Germany, amounting to EUR 4,555 thousand, advances for machinery in Spain, Peru, Brazil and Chile, amounting to EUR 11,620 thousand, and refurbishments at facilities in Brazil and The Philippines, amounting to EUR 5,802 thousand.

No assets are subject to restrictions on title or pledged as security for particular transactions at 31 December 2021 and 2020.

Commitments for the acquisition of property, plant and equipment are detailed in Note 26.

The Cash Group's procedures include formalising insurance policies to cover possible risks to which various items within its property, plant and equipment are subject. At the close of 2021 and 2020 there was no hedge shortfall whatsoever regarding such risks.

12. Rights of use and lease liabilities

The breakdown of changes in right of use assets for the year ended at 31 December 2021 and 2020 is as follows:

	Thousands of Euros
	2021	2020
Cost
Balance at 1 January	119,384	114,208
Additions	48,805	21,272
Business combinations (Note 27)	—	108
Exits from the scope (Note 2)	(1,584)	(2,095)
Disposals and transfers	(10,793)	(2,007)
Translation differences	1,649	(12,102)
Balance at 31 December	157,461	119,384
Accumulated amortisation
Balance at 1 January	(46,761)	(22,605)
Exits from the scope (Note 2)	1,038	585
Provisions charged against the income statement	(32,621)	(27,190)
Translation differences	(1,070)	2,449
Disposals and transfers	450	—
Balance at 31 December	(78,964)	(46,761)
Net balance
At 1 January	72,623	91,603
At 31 December	78,497	72,623

Of the total amount of rights of use at 31 December 2021, EUR 73,054 thousand correspond to buildings, EUR 4,484 thousand to vehicles and EUR 959 thousand to machinery. (2020: EUR 61,280 thousand correspond to buildings, 10,223 vehicles and EUR 1,120 thousand to machinery).

With regard to lease contracts, the Cash Group has a dispersed portfolio. The average duration of property lease contracts is 5 years, and 3 years for vehicles.

The right of use has been defined according to the binding duration of the contract in force for each asset.

The breakdown of changes in lease liabilities for the year ended at 31 December 2021 and 2020 is as follows:

	Thousands of Euros
	2021	2020
Liabilities
Balance at 1 January	80,366	105,455
Additions	48,968	21,272
Business combinations (Note 27)	—	108
Write offs and cancellations	(46,994)	(36,257)
Financial expenses (Note 7)	5,549	5,703
Translation differences	134	(13,949)
Exits from the scope	(596)	(1,966)
Balance at 31 December	87,427	80,366

The analysis of the contractual maturity date of the lease liabilities, including future interest to be paid, is as follows:

Thousands of Euros	6 months or less	6 months to 1 year	1-2 years	2-5 years	More than 5 years
Right of use liabilities	12,172	11,351	17,204	35,597	11,103
	12,172	11,351	17,204	35,597	11,103

The average incremental discount rates for the main countries affected by this standard, used for calculating the current value of the recognised rights of use and lease liabilities were as follows:

	1 to 3 years	3 to 5 years	5 to 10 years
Germany	0.91%	1.20%	1.61%
Brazil	7.06%	8.92%	9.77%
Peru	3.26%	4.08%	5.06%
Argentina	37.87%	37.63%	36.34%
Colombia	5.54%	6.45%	7.85%
Chile	3.60%	4.40%	5.08%
Spain	0.86%	1.11%	1.58%

As indicated in Note 32.7 the Prosegur Cash Group has chosen to not recognise in the balance sheet the lease liabilities and the right of use asset corresponding to short-term lease contracts (leases for one year or less) and leases for low value assets (USD 5 thousand or less). Those exceptions have been recorded entirely under the heading on operating leases. The total lease expense not subject to IFRS 16 for term as well as amount came to EUR 10,936 thousand (2020: EUR 18,338 thousand) (Note 4).

13. Goodwill

Details of movement in goodwill are as follows:

	Thousands of Euros
	2021	2020
Balance at 1 January	393,009	375,467
Business combinations (Note 27)	25,183	63,059
Additions	2,311	1,743
Exits from the scope (Note 2)	(20,605)	—
Provision for impairment losses recognised in profit/(loss)	(18,106)	(17,342)
Translation differences	7,341	(29,918)
Balance at 31 December	389,133	393,009

Additions to goodwill deriving from business combinations are as follows:

	2021
	Thousands of Euros
Cash business combinations in LatAm	25,183
	25,183
	2020
	Thousands of Euros
Cash business combinations in LatAm	59,933
Cash business combinations in Europe	3,018
Cash business combinations in AOA	108
	63,059

Additions correspond to the adjustments made to the value of goodwill as a result of the re-estimation of the associated deferred contingent payment and the fair values of the identifiable net assets for the business combination indicated in 2021 and the re-estimation of the associated deferred contingent payment for the business combination indicated in 2020:

	2021
	Thousands of Euros
Cash business combinations in Europe	2,311
	2,311
	2020
	Thousands of Euros
Cash business combinations in LatAm	1,743
	1,743

Calculations relating to business combinations may be adjusted for up to a year from the acquisition date.

Details of the estimated goodwill in the tables above and the allocation of the amounts for which valuation was completed in the period are provided in Note 27.

Impairment testing of goodwill impairment

Goodwill has been allocated to the Prosegur Cash Group's cash-generating units (CGU) in accordance with their respective country of operation. Goodwill is allocated to CGU for impairment testing purposes. Goodwill is allocated to those CGU that are expected to benefit from the business combination from which the goodwill arose.

The nature of the assets included for establishing the carrying amount of a CGU are: Property, Plant and Equipment, Goodwill, Other Intangible Assets and Working Capital (Note 32.9).

A summary of the CGU to which goodwill has been allocated, by country, is as follows:

	Thousands of Euros
	2021	2020
CGU Spain	6,572	24,903
CGU Portugal	5,730	5,730
CGU Germany	35,985	35,985
Subtotal Europe	48,287	66,618
CGU Australia	—	17,758
CGU Indonesia	3,578	3,341
CGU Philippines	12,874	12,680
Subtotal AOA	16,452	33,779
CGU Brazil	118,497	117,780
CGU Chile	35,586	35,586
CGU Peru	30,595	30,764
CGU Argentina	53,521	49,737
CGU Colombia	19,879	21,282
CGU Ecuador	21,401	19,753
CGU Uruguay	32,214	—
CGU rest of LatAm	12,701	17,710
Subtotal LatAm	324,394	292,612
Total	389,133	393,009

Prosegur Cash Group tests goodwill for impairment at the end of each reporting period, or earlier if there are indications of impairment, in accordance with the accounting policy described in Note 32.9.

The recoverable amount of a CGU is determined based on its value in use.

Value in use as a method for calculation:

The key operating assumptions used to calculate value in use for the various CGUs are based on Prosegur Cash budgets for the following year and the strategic plan for subsequent years. Both the budget and the plan are approved by Management and calculated on the basis of past years' experience, adjusting for any deviations in previous years. The current Strategic Plan covers 2021 to 2023 period. Projections of both gross margin and sales, on which the calculation of value in use are based, are drawn up in accordance with each country's macroeconomic growth and the efficiency plans defined to optimise profit. Cash flows are discounted using a discount rate based on the weighted average cost of capital (WACC). The residual value of each CGU is generally calculated as perpetual income.

During the 2021 financial year, several areas where the Cash Group operates recovered pre-COVID business volumes, although others are progressing more slowly as a result of partial lockdowns and delays in vaccination processes. In this sense, the estimated flows for the 2022 and subsequent

years take into account the gradual recovery of volumes that occurred in 2021 and the macroeconomic indicators, which reflect the realities of the different countries in which the Cash Group is present.

Below is a breakdown of the items estimated for calculating value in use and the key assumptions considered:

• Revenue: revenue is estimated on the basis of growth by volume and price. Generally, growth by volume is based on the country's GDP and growth by price on inflation.
• Gross Profit/(Loss): based on efficiency plans defined by the Prosegur Cash Group, mainly for optimising client portfolios, applying a profitability analysis methodology aimed at establishing threshold margins, under which it is not considered to be viable to establish a commercial relationship with those clients. The Gross Margin is calculated as the Group's total sales revenue less cost of sales, divided by total sales revenue, expressed as a percentage.
• EBITDA: based on the average optimisation costs obtained in the past. It is calculated using the Group's net profit, before deducting interest, tax, depreciation and amortisation.
• CAPEX: based primarily on plans to renew the fleet in accordance with its age and the armoured bases.
• Working capital: based on optimising DSO or average collection period for receivables. The projection is based on sales growth, in accordance with the DSO determined.
• Tax: Tax estimates are calculated in accordance with the effective tax rate in each country and the expected profit/l(loss) therein.

The macroeconomic estimates used are obtained from external information sources.

Details of the key assumptions relating to the most significant CGUs in 2021 are as follows:

	Spain	Germany	Portugal	Australia	India	Chile	Brazil	Colombia	Peru	Argentina
Growth rate	1.70%	2.03%	1.35%	2.42%	4.05%	3.00%	3.06%	3.01%	2.02%	15.00%
Discount rate	6.35%	6.02%	7.59%	9.55%	12.18%	9.04%	10.95%	10.18%	8.56%	30.79%

Details of the key assumptions relating to the most significant CGUs in 2020 are as follows:

	Spain	Germany	Portugal	Australia	India	Chile	Brazil	Colombia	Peru	Argentina
Growth rate	1.69%	1.97%	1.52%	2.42%	4.04%	3.00%	3.25%	2.91%	2.00%	15.00%
Discount rate	6.04%	5.74%	7.30%	7.20%	12.20%	8.21%	9.25%	9.21%	7.85%	29.93%

The discount rates used are post-tax values and reflect specific risks related to the country of operation.

As a result of the impairment tests carried out in 2021, the recoverable values calculated according to the previous methodology were higher than the net carrying amount, except for:

CGU Australia CASH: the complex market conditions that Australia has been experiencing in recent years continue to have a negative impact on business, aggravated by COVID and a general price drop in the sector.

During 2021, prices have continued a downward trend, and the amounts of cash-in-transit have continued to decrease owing to a lesser use of cash.

As a result, an impairment of EUR 18,106 thousand was recorded for goodwill.

As a result, in 2021 an impairment of EUR 18,106 thousand was recorded for goodwill. In 2020 an impairment of EUR 17,342 thousand was recorded for goodwill and an impairment of EUR 9,658 thousand for intangible assets.

Along with impairment testing, Prosegur Cash has also performed a sensitivity analysis on the goodwill allocated to the main CGU, for the purposes of the key assumptions.

The sensitivity analysis on EBITDA consists of determining the turning point which would lead to an impairment loss. Accordingly, hypotheses are evaluated until the figures that imply an impairment to be recognised in the financial statements are reached. The percentage represents the amount by which EBITDA would have to diminish in order for the CGU to be impaired, maintaining the other variable constant.

The sensitivity analysis performed on the growth rate consists of determining the weighted average growth/deceleration rate (used to extrapolate cash flows beyond the budget period) from which impairment losses would be incurred by each of the most representative CGUs.

In addition, the sensitivity analysis made on the discount rate consists of determining the basis of which weighted average discount rate used for extrapolating cash flows would incur impairment losses for each of the most representative CGUs.

Details of the thresholds for discount rates, the growth/deceleration(-) rates and EBITDA, taken independently, above which impairment losses would arise, maintaining the other variables constant, are as follows:

		2021		2020
	Discount rate	Growth rate	EBITDA	Discount rate	Growth rate	EBITDA
Brazil	15.72 %	-6.97 %	-16.30 %	14.55 %	-4.91 %	-22.66 %
Argentina	100.00 %	-100.00 %	-46.19 %	93.66 %	-100.00 %	-57.82 %
Spain	17.73 %	-44.30 %	-28.43 %	19.98 %	-44.35 %	-39.96 %
Colombia	12.32 %	-0.62 %	-10.00 %	9.82 %	2.38 %	-3.09 %
Peru	40.10 %	-100.00 %	-52.26 %	29.84 %	-100.00 %	-46.95 %
Chile	12.98 %	-3.91 %	-18.73 %	12.00 %	-1.09 %	-19.68 %
Germany	16.89 %	-62.89 %	-33.74 %	15.25 %	-43.10 %	-36.95 %
Australia	9.56 %	2.41 %	-0.02 %	6.17 %	3.86 %	10.13 %

Impairment losses would arise for discount rates above the percentage indicated in the table, and for growth rates or changes in EBITDA lower than the percentage indicated in the table. The Cash Group considers that none of these scenarios are reasonably possible.

Prosegur Cash does not consider it likely that the sensitivity assumptions used in the above tables would occur, so it does not consider there to be any indicator of impairment problems.

14. Other intangible assets

Details and movement of other main intangible assets are as follows:

Thousands of Euros	Computer software	Client portfolios	Trademarks and licences	Other intangible assets	Total
Cost
Balance at 01 January 2020	46,674	296,365	15,130	11,974	370,143
Translation differences	(3,608)	(65,581)	(3,681)	(2,359)	(75,229)
Business combinations (Note 27)	36	40,121	517	7,150	47,824
Additions	6,099	716	—	438	7,253
Disposals	(1,199)	—	—	(521)	(1,720)
Exit from the scope	(369)	—	—	—	(369)
Balance at 31 December 2020	47,633	271,621	11,966	16,682	347,902
Translation differences	3,020	7,480	945	358	11,803
Business combinations (Note 27)	6,197	19,372	15,871	204	41,644
Additions	7,481	—	—	—	7,481
Disposals	(368)	—	—	—	(368)
Exits from the scope (Note 2)	(1,620)	(23,832)	—	(1,007)	(26,459)
Balance at 31 December 2021	62,343	274,641	28,782	16,237	382,003
Depreciation and amortisation
Balance at 01 January 2020	(29,632)	(107,156)	(11,217)	(5,444)	(153,449)
Translation differences	2,056	27,049	4,363	1,514	34,982
Disposals	258	—	—	294	552
Depreciation and amortisation for the year	(7,100)	(21,574)	(557)	(1,492)	(30,723)
Provision for impairment losses recognised in profit/(loss)	—	(9,658)	—	—	(9,658)
Exit from the scope	286	—	—	—	286
Balance at 31 December 2020	(34,132)	(111,339)	(7,411)	(5,128)	(158,010)
Translation differences	(696)	(1,654)	(468)	(205)	(3,023)
Disposals	84	—	—	—	84
Depreciation and amortisation for the year	(6,084)	(18,524)	(526)	(1,928)	(27,062)
Exits from the scope (Note 2)	329	5,620	—	614	6,563
Balance at 31 December 2021	(40,499)	(125,897)	(8,405)	(6,647)	(181,448)
Carrying amount
At 01 January 2020	17,042	189,209	3,913	6,530	216,694
At 31 December 2020	13,501	160,282	4,555	11,554	189,892
At 01 January 2021	13,501	160,282	4,555	11,554	189,892
At 31 December 2021	21,844	148,744	20,377	9,590	200,555

The carrying amount at 31 December 2021 of individually significant client portfolios and their remaining useful lives are as follows:

	2021
Thousands of Euros	Country	Cost	Depreciation and impairment losses	Carrying amount	Remaining useful lives
Nordeste Group Large Clients Portfolio	Brazil	49,361	(26,965)	22,396	9 years and 2
Cash LatAm portfolio	LatAm	16,751	(698)	16,053	months 13 years and 5
Norsegel Vigilancia y Transporte de Valores LTDA Large Clients Portfolio	Brazil	14,633	(11,085)	3,548	months 5 years
Preserve y Transpev Large Clients Portfolio	Brazil	13,213	(11,716)	1,497	2 years and 5
Portfolio of the 5 Main Clients of Chubb Security Services PTY LTD	Australia	12,744	(10,281)	2,463	months 12 years
Portfolio of the Remaining Clients of Chubb Security Services PTY LTD	Australia	18,828	(12,843)	5,985	12 years
Portfolio of business combinations Prosegur Cash	LatAm	11,192	(1,072)	10,120	18 years and 1
Cash LatAm portfolio	LatAm	16,544	(3,509)	13,035	month 9 years and 7
Cash LatAm portfolio 2020	LatAm	13,570	(1,857)	11,713	months 13 years and 1
Cash AOA portfolio	AOA	6,222	(1,330)	4,892	month 10 years and 6
Transbank Client portfolio	Brazil	4,336	(3,045)	1,291	months 5 years and 2
Nordeste Group Sergipe Clients portfolio	Brazil	4,110	(4,042)	68	months 1 year and 2
Fiel Large Clients portfolio	Brazil	3,134	(2,411)	723	months 4 years
Nordeste Group Bahia Other Clients portfolio	Brazil	3,212	(2,632)	580	3 years and 2
		187,850	(93,486)	94,364	months

The carrying amount at 31 December 2020 of individually significant client portfolios and their remaining useful lives were as follows:

			2020
Thousands of Euros	Country	Cost	Depreciation and impairment losses	Carrying amount	Remaining useful lives
Nordeste Group Large Clients Portfolio	Brazil	48,869	(23,982)	24,887	10 years and 2
Norsegel Vigilancia y Transporte de Valores LTDA Large Clients Portfolio	Brazil	14,487	(10,097)	4,391	months 6 years
Preserve y Transpev Large Clients Portfolio	Brazil	13,082	(10,826)	2,256	3 years and 5
Portfolio of the 5 Main Clients of Chubb Security Services PTY LTD	Australia	12,518	(9,441)	3,077	months 13 years
Portfolio of the Remaining Clients of Chubb Security Services PTY LTD	Australia	18,495	(11,643)	6,852	13 years
Portfolio of business combinations Prosegur Cash	LatAm	11,981	(549)	11,432	19 years and 1
Cash LatAm portfolio	LatAm	16,380	(1,985)	14,395	month 10 years and 7
Contesta Group portfolio	Spain	9,812	(2,290)	7,522	months 10 years and 8
Cash LatAm portfolio 2020	LatAm	12,524	(820)	11,704	months 14 years and 1
Cash AOA portfolio	AOA	6,127	(872)	5,255	month 11 years and 6
Transbank Client portfolio	Brazil	4,971	(2,709)	2,262	months 6 years and 2
Nordeste Group Sergipe Clients portfolio	Brazil	4,070	(3,595)	474	months 2 years and 2
Fiel Large Clients portfolio	Brazil	3,103	(2,149)	954	months 5 years
Nordeste Group Bahia Other Clients portfolio	Brazil	3,180	(2,341)	840	4 years and 2
		179,599	(83,299)	96,301	months

The cost at 31 December 2021 and 2020 for each individually significant client portfolio differs due to exchange differences.

In 2021, additions to intangible assets were included, arising from the allocation of fair value to the purchase prices of the business combinations summarised in the following table (see Note 27):

	Thousands of Euros
	Computer software	Client portfolios	Trademarks and licences	Other intangible assets
Cash business combinations in LatAm	6,197	19,272	15,871	—
Cash business combinations in Europe	—	100	—	204
	6,197	19,372	15,871	204

In 2020, additions to intangible assets were recognised due to the allocation of fair value to the purchase prices of the following business combinations:

	Thousands of Euros
	Computer software	Client portfolios	Trademarks and licences	Other intangible assets
Cash business combinations in LatAm	33	40,121	—	—
Cash business combinations in Europe	3	—	517	3,172
Cash business combinations in AOA	—	—	—	3,978
	36	40,121	517	7,150

All intangible assets above have finite useful lives and are amortised at rates of between 5% and 50% depending on the estimated useful life. Details of the amortisation percentages of the client portfolio and trademarks are described in Note 32.8. There are no other intangible assets with an indefinite useful life except for trademarks relating to the collection and payment business and the financial technology business, that arose as a business combination in LatAm in 2021, and the trademark on the website domain arising from a business combination in Europe in 2020.

Intangible assets, which as of 31 December 2021 have an indefinite useful life, amount to EUR 16,388 thousand.

The factors analysed in determining the indefinite life include:

• It is expected to use the asset indefinitely and there are no plans to change the trademark
• Regular disbursements are being made to maintain the trademarks and there is no contractual expiration
• The life of the asset does not depend on the useful lives of other assets held by the entity

On the other hand, assets are tested for impairment at the end of each reporting period.

The other intangible assets are tested for impairment as described in Notes 32.8 and 32.9. The result of the value impairment tests is detailed in Note 13.

No intangible assets are subject to restrictions on title or pledged as security for particular transactions at 31 December 2021 and 2020.

15. Investments accounted for using the equity method

Equity-accounted investments derive from joint arrangements.

The joint arrangements in place in 2021 comprise the following companies:

• Companies operating in India: SIS Cash Services Private Limited, SIS Prosegur Holdings Private Limited and SIS Prosegur Cash Logistics Private Limited; the latter two are 100% owned by the former.
• Companies operating in Spain: Dinero Gelt, S.L. and Zerius Europe, S.L.

These joint arrangements are structured as separate vehicles and the Cash Group has a stake in their net assets (49% in SIS Cash Services Private Limited and 65.75% in Dinero Gelt, S.L. And 49% in Zerius Europe S.L.). Consequently, the Cash Group has classified these shareholdings as Joint Ventures. They are equity-accounted in accordance with IFRS 11 (Note 32.2).

Details of changes in the investments in joint ventures accounted for under the equity method are as follows:

Thousands of Euros	2021	2020
Participation in joint ventures	6,485	5,718
	6,485	5,718
Thousands of Euros	2021	2020
Balance at 1 January	5,718	7,510
Acquisitions	1,644	—
Participation in profits/(losses)	(1,257)	(1,045)
Translation differences	380	(747)
Balance at 31 December	6,485	5,718

Additions for the year correspond mainly to several capitalisations in the company Dinero Gelt S.L. in April and November 2021.

Additionally, in June 2021, the company Zerius Europe S.L. was incorporated in Spain, in which the Cash Group has a 49% stake in order to continue expanding the business of integrated solutions for ATMs in the LatAm region.

No significant changes were recorded for the 2020 financial year.

The breakdown of joint ventures accounted for under the equity method is as follows:

Thousands of Euros	2021	2020
SIS Cash Services Private Limited	2,435	2,063
SIS Prosegur Holdings Private Limited	3,001	3,038
SIS Prosegur Cash Logistic Private	(18)	—
Dinero Gelt S.L.	1,067	617
Balance at 31 December	6,485	5,718

All the companies mentioned belong to the AOA segment, except for Dinero Gelt, S.L, which belongs to the Europe segment.

The breakdown of the main amounts of investments accounted for under the equity method is included in Appendix III.

The Cash Group has no significant contingent liability commitments in any of the joint ventures accounted for under the equity method.

16. Inventories

Details of inventories are as follows:

Thousands of Euros	2021	2020
Fuel and others	10,984	6,051
Operative material	2,244	1,783
Uniforms	177	170
Others	1,162	2,081
Impairment of inventories	(429)	(317)
	14,138	9,768

No inventories have been pledged as securities for liabilities.

17. Non-current financial assets

Non-current financial assets at 31 December 2021 mainly include:

• Two loans granted for a total amount of EUR 2,331 thousand signed in February and May 2017, maturing in six years (2020: EUR 2,190 thousand) (Note 28) from the Cash Group to the Indian company SIS Cash Services Private, Ltd., consolidated using the equity method (Note 15).
• Loan in an amount of GBP 3,700 (exchange value at 31 December 2021: EUR 4,431 thousand), maturing in June 2023, granted by Cash Group to Change Group.
• Long-term collection right with a business combination seller from previous years in Brazil in the amount of EUR 5,877 thousand and maturing as of 2025.
• Granting of loans granted to two external investors related to the subsidiaries of the Cash Group in Indonesia and the Philippines, amounting to EUR 6,154 thousand.
• Deposits and guarantees held by Cash Group in an amount of EUR 3,344 thousand (2020: EUR 3,040 thousand) and other financial investments for EUR 865 thousand (2020: EUR 750 thousand).

18. Clients and other receivables

Details of cash and cash equivalents are as follows:

	Thousands of Euros
	2021	2020
Clients' receivables for sales and services	216,438	214,751
Less: impairment of receivables	(12,773)	(8,079)
Clients – Net	203,665	206,672
Public Administrations	30,828	24,906
Employee prepayments	4,288	3,477
Court Deposits	16,229	18,318
Prepayments	15,912	9,545
Other receivables	9,253	12,335
	280,175	275,253

Credit risk from trade receivables is not concentrated in a single country or client, because the Cash Group works with a large number of clients distributed among the different countries in which it operates (Note 29.1).

At 31 December 2021 and 2020 there are no factoring agreements in place.

Legal deposits comprises mainly court bonds associated with employment-related litigation in Brazil (Note 21).

Details of past-due trade receivables by maturity tranches, net of the corresponding impairment, are as follows:

		Thousands of Euros
	2021	2020
0 to 3 months	26,917	39,495
3 to 6 months	1,982	3,315
Over 6 months	1,342	1,756
	30,241	44,566

The carrying amount of past-due trade receivables is close to fair value, given the non-significant effect of the discount.

There are no reasonable doubts as to the recoverability of past-due trade receivables for which no impairment has been recognised.

There have been no changes in the portfolio or circumstances causing the expected loss to differ from calculations based on historical values.

Changes in the impairment of receivables are as follows:

	Thousands of Euros
	2021	2020
Balance at 1 January	(8,079)	(8,229)
Provision and reversal for impairment (Note 6)	(32)	(3,193)
Applications	366	1,618
Business combinations (Note 27)	(5,127)	—
Translation differences	99	1,725
Balance at 31 December	(12,773)	(8,079)

As a general rule, impaired receivables are written off when Prosegur does not expect to recover any further amount.

The maximum exposure to credit risk at the reporting date is the fair value of the receivables in each of the above-mentioned categories. The Cash Group has arranged credit insurance to cover and minimise insolvency risk. This insurance applies to clients in Spain and Portugal and provides risk cover for new operations and/or expansions of services in relation to existing operations.

The Cash Group considers that the rest of client balances other than for the rendering of services does not pose a credit risk because these are Public Administrations or court deposits that are cancelled against the provision for those risks or their retrieval.

The procedures followed by the Cash Group in relation to credit risk and currency risk on trade receivables are described in Note 29.1.

19. Cash and cash equivalents

Details of cash and cash equivalents are as follows:

		Thousands of Euros
	2021	2020
Cash in hand and at banks	197,811	354,067
Current bank deposits	52,993	47,706
	250,804	401,773

The effective interest rate on current bank deposits for 2021 is 1.51% (2020: 3.67%) and the average term of the deposits held during the first half of 2021 was 16 days (2020: 69 days).

20. Net Equity

Details of and changes to equity during the year are shown in the consolidated statement of changes in equity.

a) Share capital, share premium and own shares

Details of share capital, share premium and own shares, and changes therein, are as follows:

	Thousands of Euros
	No. of Shares (thousands)	Share capital	Share premium	Own shares	Total
Balance at 01 January 2020	1,500,000	30,000	—	(1,546)	28,454
Sale and acquisition of own shares	—	—	—	(16,715)	(16,715)
Capital increase	44,536	891	33,134	—	34,025
Balance at 31 December 2020	1,544,536	30,891	33,134	(18,261)	45,764
Sale and acquisition of own shares	—	—	—	(12,473)	(12,473)
Capital reduction	(21,589)	(432)	—	16,452	16,020
Balance at 31 December 2021	1,522,947	30,459	33,134	(14,282)	49,311

2021 Capital reduction

At 31 December 2021, the share capital of Prosegur Cash, S.A. was EUR 30,459 thousand (2020: EUR 30,891 thousand) and is represented by 1,522,946,683 shares (2020: 1,544,535,979 shares).

On 6 July 2021, the deed for the reduction of capital of Prosegur Cash was registered in the Mercantile Registry of Madrid, relating to the reduction of capital through the redemption of 21,589,296 own shares of the Company, each with a par value of EUR 0.02, thus reducing the share capital by EUR 431,786, from EUR 30,890,720 to EUR 30,458,934. The capital reduction was carried out without refund of contributions and was made against free reserves by provisioning an unavailable voluntary reserve for the same amount as the capital reduction (that is EUR 431,786), in accordance with article 335 c) of the Spanish Companies Act.

This capital reduction was approved by the Shareholders General Meeting of the Company held on 28 October 2020, under item thirteen of its agenda.

2020 Capital increases

Associated with the reinvestment programme of the third payment of the dividend, the capital increase agreed by the Board of Directors under item 9 of the agenda of the Shareholders General Meeting of the Company held on 6 February 2017 was executed on 3 July 2020. The increase was registered on 6 July 2020.

The capital increase was charged against monetary contributions of Prosegur Cash for a total nominal amount of EUR 421,159, through the issuance of 21,057,953 ordinary shares with a par value of EUR 0.02 each. All the shares have been subscribed and paid up. The amount of the share premium was set at EUR 16,381,508.

Associated with the reinvestment programme of the fourth payment of the dividend, the capital increase agreed by the Board of Directors under item 9 of the agenda of the Shareholders General Meeting of the Company held on 6 February 2017 was executed on 5 October 2020. The increase was registered on 6 October 2020.

The capital increase was charged against monetary contributions of Prosegur Cash for a total nominal amount of EUR 469,560, through the issuance of 23,478,026 ordinary shares with a par value of EUR 0.02 each. All the shares have been subscribed and paid up. The amount of the share premium was set at EUR 16,752,173.

As a result of the mentioned capital increases, article 6 of the Articles of Association of Prosegur Cash has been modified to reflect the new share capital figure.

Share capital and Share premium

At 31 December 2021, the share capital of Prosegur Cash, S.A. totals EUR 30,459 thousand, represented by 1,522,946,683 shares with a par value of EUR 0.02 each (2020: 1,544,535,979 shares), fully subscribed and paid. These shares are listed on the Madrid, Bilbao, Valencia and Barcelona stock exchanges and traded via the Spanish Stock Exchange Interconnection System (SIBE).

Details of the Company's shareholders are as follows:

	Number of shares
Shareholders	2021
Ms Helena Revoredo Delvecchio (1)	79.28 %
Others	20.72 %
	100.00 %

(1) Investment through Prosegur Compañía de Seguridad, S.A.

Own shares

2021 Share buyback programme

On 23 February 2021, the Company agreed to temporarily suspend the execution of the own share buyback programme of Prosegur Cash, S.A., which was approved by the Board of Directors of the Company on 3 June 2020.

Additionally, under the agreement adopted by the Board of Directors of the Company on 23 February 2021, the Company has implemented a new own share buyback programme (the Programme) under the provisions of Regulation (EU) No. 596/2014 on market abuse and Commission Delegated Regulation (EU) 2016/1052 (the Regulations), making use of the authorisation granted by the Shareholders General Meeting held on 6 February 2017 for the purchase of own shares, in order to meet the commitments and obligations derived from the remuneration plans in shares for the Company's executive directors and employees.

The Programme had the following features:

• Maximum amount allocated to the Programme: EUR 28,000 thousand.
• Maximum number of shares that can be acquired: up to 14,000,000 shares representing approximately 0.91% of the Company's share capital on the date of the agreement.
• Maximum price per share: shares were purchased in compliance with the price and volume limits established in the Regulations. In particular, the Company cannot buy shares at a price higher than the highest of the following: (i) the price of the last independent trade; or (ii) that corresponding to the highest current independent bid on the trading venues where the purchase is carried out.
• Maximum volume per trading session: in so far as volume is concerned, the Company did not purchase more than 25% of the average daily volume of the shares in any one day on the trading venues on which the purchase was carried out.
• Duration: the Programme has a maximum duration of one year. Notwithstanding the above, the Company reserves the right to conclude the Programme if, prior to the end of said maximum term of one year, it had acquired the maximum number of shares authorised by the Board of Directors, if it had reached the maximum monetary amount of the Programme or if any other circumstances arise that call for it.

The main manager of the programme is an investment company or a credit institution that takes its decisions in relation to the timing of the purchase of the Company's shares irrespective of the Company.

On 2 August 2021, Prosegur Cash, S.A. acquired a total of 14,000,000 shares representing approximately 0.92% of its share capital at that date, achieving the target of the Programme and therefore bringing the Programme to a close before the deadline set for its term.

On 20 December 2021 the Board of Directors decided to implement an own share buyback programme in the terms of Regulation (EU) no. 596/2014 on market abuse and the Commission Delegated Regulation 2016/1052, making use of the authorisation granted by the Shareholders General Meeting held on 2 June 2021 for the purchase of own shares, for the purpose of redeeming them pursuant to a share capital reduction resolution which will be submitted for the approval of the next Shareholders General Meeting.

The Programme has the following features:

• Maximum amount allocated to the Programme: EUR 15,000 thousand.
• Maximum number of shares that can be acquired: up to 22,844,200 shares representing approximately 1.5% of the Company's share capital on the date of the agreement.
• Maximum price per share: shares will be purchased in compliance with the price and volume limits established in the Regulations. In particular, the Company cannot buy shares at a price higher than the highest of the following: (i) the price of the last independent trade; or (ii) the highest current independent bid on the trading venues where the purchase is carried out.
• Duration: the Programme has a maximum duration of one year. Notwithstanding the above, the Company reserves the right to conclude the Programme if, prior to the end of said maximum term of one year, it had acquired the maximum number of shares authorised by the Board of Directors, if it had reached the maximum monetary amount of the Programme or if any other circumstances arise that call for it.

The main manager of the Programme is an investment company or a credit institution that takes its decisions in relation to the timing of the purchase of the Company's shares irrespective of the Company.

In addition, the majority shareholder of the Company, the entity Prosegur Compañía de Seguridad, S.A., and its 100%-owned investee, the company Prosegur Asset Management, S.A., holders of 79.2% of the share capital, have expressed their intention to not sell shares in Prosegur Cash during the coming months.

2020 Share buyback programme

The suspended programme which was approved by the Board of Directors of Prosegur Cash, S.A. on 3 June 2020, had the following conditions:

The programme was put into effect under the provisions of Regulation (EU) no. 506/2014 on market abuse and the Commission Delegated Regulation 2016/1052, making use of the authorisation granted by the Shareholders General Meeting held on 6 February 2017 for the purchase of own shares, for the purpose of redeeming them pursuant to a share capital reduction resolution which will be submitted for the approval of the next Shareholders General Meeting.

The Programme applied to a maximum of 45,000,000 shares, representing approximately 3% of Prosegur Cash's share capital (1,500,000,000 shares at the time of the meeting of the Board of Directors of 3 June 2020).

The Programme had the following features:

• Maximum amount allocated to the Programme: EUR 40,000 thousand.
• Maximum number of shares that can be acquired: up to 45,000,000 shares representing approximately 3% of the Company's share capital.
• Maximum price per share: shares will be purchased in compliance with the price and volume limits established in the Regulations. In particular, the Company cannot buy shares at a price higher than the highest of the following: (i) the price of the last independent trade; or (ii) that corresponding to the highest current independent bid on the trading venues where the purchase is carried out.

• Maximum volume per trading session: in so far as volume is concerned, the Company did not purchase more than 25% of the average daily volume of the shares in any one day on the trading venues on which the purchase was carried out.
• Duration: the Programme has a maximum duration of one year. Notwithstanding the above, the Company reserves the right to conclude the Programme if, prior to the end of said maximum term of one year, it has acquired the maximum number of shares authorised by the Board of Directors, if it has reached the maximum monetary amount of the Programme or if any other circumstances arise that call for it.

As a result of the implementation of the Programme, the operation of the liquidity contract which came into force on 11 July 2017 and that was signed by the Company was suspended.

Redemption of own shares (reduction of share capital)

On 6 July 2021 a capital reduction took place through the redemption of 21,589,296 own shares of the Company, with a par value of EUR 0.02 each.

At 2021 year end, the treasury stock held by Prosegur Cash, S.A. is composed of 18,198,819 shares (23,436,659 shares in 2020).

At 31 December 2021, the liquidity agreement that entered into force on 11 July 2017 was temporarily suspended, treasury stock linked to that agreement amount to 1,141,932. In 2020 these came to 768,667 shares.

Details of changes in own shares during the year are as follows:

	Number of shares	Thousands of Euros
Balance at 31 December 2020	23,436,659	18,261
Purchase of own shares	17,183,819	13,337
Sale of own shares	(815,263)	(851)
Capital reduction	(21,589,296)	(16,452)
Other awards	(17,100)	(13)
Balance at 31 December 2021	18,198,819	14,282

b) Retained earnings and other reserves

The main movements in the consolidated statement of changes in equity in 2021 are as follows:

Thousands of Euros	Legal reserve	Other retained income	Total
Balance at 01 January 2020	6,000	736,659	742,659
Total comprehensive income for the year	—	15,356	15,356
Dividends (Note 9)	—	(59,928)	(59,928)
Balance at 31 December 2020	6,000	692,087	698,087
Total comprehensive income for the year	—	34,187	34,187
Dividends (Note 9)	—	(30,002)	(30,002)
Capital reduction	—	(16,020)	(16,020)
Accrued share-based incentives (Note 21)	—	1,743	1,743
Other changes (Note 25)	—	(11,067)	(11,067)
Balance at 31 December 2021	6,000	670,928	676,928

Among the retained earnings are reserves amounting to EUR 131 million, corresponding to the profits/(loss) generated by subsidiaries prior to the contribution to Prosegur Cash, and which cannot therefore be distributed as dividends.

The legal reserve, which amounts to EUR 6,000 thousand, was endowed in compliance with article 274 of the Revised Text of the Spanish Companies Act, which requires that companies transfer 10% of profits for the year to a legal reserve until this reserve reaches an amount equal to 20% of the share capital. The legal reserve is not distributable and if it is used to offset losses, in the event that no other reserves are available, it must be replenished with future profits.

The proposed distribution of the Parent Company's profit for 2021, determined in accordance with prevailing mercantile legislation and standards for the preparation of individual annual accounts, in terms of the interim dividend approved by the Company's Board of Directors (Note 9) to be submitted to the shareholders for approval at their Annual Shareholders General Meeting, is as follows:

Thousands of Euros	2021	2020
Basis of allocation
Profit/(loss) for the year	33,600	301,995
	33,600	301,995
Allocation
Legal reserve	—	178
Voluntary reserves	3,598	241,889
Dividends	30,002	59,928
	33,600	301,995

c) Cumulative translation difference

Translation reserves comprise all the translation differences deriving from the conversion of the financial statements of operations abroad.

Details of these translation differences are as follows:

	Thousands of Euros
	2021	2020
Balance at 1 January	(662,886)	(167,215)
Transfer of translation differences to reserves	—	(360,558)
Translation difference for foreign operations	13,848	(135,113)
Balance at 31 December	(649,038)	(662,886)

As a consequence of the IFRIC decision agenda taken in 2020, the Prosegur Cash Group changed the presentation it had previously made of the translation differences of the business in Argentina, which had been considered reserves. In its agenda decision, the IFRIC clarified that the effects of the inflation corrected in IAS 29 in the equity located in the country affected by hyperinflation (excluding the part of the net monetary position that directly affects profit/(loss)) has a currency effect similar to the one that arises when converting the country's financial statements to the presentation currency, whereby both concepts should be reflected in translation differences.

Likewise, the IFRIC clarified that in the first application of IAS 29, the treatment should be the same as that explained above and with retroactive effect and therefore present the effects in accumulated translation differences, though separating the part of inflation corresponding to the net monetary position, which should be presented in reserves.

In application of all the above, the Group proceeded to reclassify the treatments that it had carried out directly against reserves in previous years for an amount of EUR 360,558 thousand between translation differences and reserves in the year 2020 and cumulatively, without modifying the comparative presentation of said periods.

The change in the balance of the cumulative translation difference at 31 December 2021 as compared to 31 December 2020 was EUR 13,848 thousand, mainly due to the currency evolution impact.

d) Dividends

Dividends distributed to the Company's shareholders are recognised as a liability in the Consolidated Annual Accounts of the Prosegur Cash Group in the year in which the dividends are approved by the Shareholders General Meeting. Interim dividends will also result in a liability in the Prosegur Cash Group's Consolidated Annual Accounts in the year in which the payment on account is approved by the Board of Directors.

21. Provisions

Details of provisions and movement are as follows:

Thousands of Euros	Occupatio nal risks	Legal risks	Employee benefits (Note 5.2)	Other risks	Total
Balance at 01 January 2021	33,131	8,402	12,939	62,187	116,659
Provisions charged against the income statement	8,326	1,049	1,494	11,078	21,947
Reversals credited to the income statement	(4,911)	(973)	(1,029)	(1,857)	(8,770)
Applications	(6,133)	(1,185)	(780)	(3,648)	(11,746)
Financial effect of discounting	890	1,021	—	486	2,397
Transfers	(9,262)	(493)	336	4,831	(4,588)
Exits from the scope (Note 2)	(289)	—	—	(552)	(841)
Provisioning charged to Equity	—	10,961	—	—	10,961
Translation differences	(100)	(22)	705	386	969
Balance at 31 December 2021	21,652	18,760	13,665	72,911	126,988
Non-current	21,652	18,760	13,665	72,287	126,364
current	—	—	—	624	624

a) Occupational risks

The provisions for occupational risks, which amount to EUR 21,652 thousand at 31 December 2021 (2020: EUR 33,131 thousand), are calculated individually based on the estimated probability of success or failure. Said probability is determined by the various law firms that work with the Prosegur Cash Group. In addition, an internal review is carried out of the probabilities of reaching agreements in each of the cases, based on past experience, in order to arrive at the final provision to be recorded.

The provision for occupational risks includes mainly provisions linked to labour legal cases in Brazil, which include lawsuits brought by former and current employees of the Prosegur Cash Group. The provisions for occupational risks, which amount to EUR 21,652 thousand at 31 December 2021 (2020: EUR 17,851 thousand). At 31 December 2021, there were 1,582 labour actions open in Brazil (2020: 1,619).

This heading also includes a provision for EUR 1,634 thousand (2020: EUR 2,116 thousand) associated with the business combination with Transpev. During the 2021 financial year, 7 cases were closed (2020: 20 cases), with 47 cases still pending (2020: 58).

Provisions charged to and reversals credited to the income statement are included under other expenses in cost of sales in Note 4, and the monetary adjustments associated to said provision are included under other financial expenses (Note 7).

b) Legal risks

The provisions for legal risks, which amount to EUR 18,760 thousand (31 December 2020: EUR 8,402 thousand), correspond mainly to civil claims which are analysed on a case-by-case basis. They include mainly lawsuits in Brazil and Chile. The settlement of these provisions is highly probable, but both the value of the final settlement as well as the moment are uncertain and depend upon the outcome of the processes under way. There are no significant legal risks.

On 20 October 2021, the Chilean competition authority (National Economic Prosecutor's Office 'FNE') filed a request before the Court for the Defence of Free Competition of Chile against the security logistics companies: Juncadella Prosegur Group Andina S.A. ('Juncadella'), Brink's Chile S.A. ('Brink's') and Wagner Seguridad Custodia and Transporte de Valores SpA ('Loomis' and together with Juncadella and Brink's, the 'Companies'), for allegedly entering into and executing an agreement consisting of setting prices for the security logistics and their related services (ATM services, treasury and payment of salaries and/or social benefits) in 2017 and 2018. This requirement derives from the investigation performed by the FNE since 2018.

The FNE requests the imposition of fines for the Group's subsidiaries in Chile. For Juncadella, it requests a fine of approximately EUR 22,000 thousand.

At the date of drawing up these consolidated annual accounts, not all parties have been notified of the legal proceedings, so the term to be able to answer the FNE's request has not started. As of 31 December 2021, the recorded amount associated with this risk in provisions for legal risks amounts to EUR 10,961 thousand.

Furthermore, on 10 January 2022, Brinks filed an application for annulment of the unconstitutionality requirement before the Constitutional Court of Chile, based on the lack of right of access to the file of the FNE investigation by the Companies until a later stage of the procedure. The consequence of the limiting of this right is that the Companies will have to respond to the FNE's request without access to the content of the aforementioned file. On 17 January 2022, the Constitutional Court decided to suspend the procedure before the TFCL while it resolves over whether the raised unconstitutionality is admissible. The suspension extends to the notifications that must be made and, consequently, the period for answering the FNE request has not yet started.

The continuity of this suspension depends on the decision of the Constitutional Court of Chile on the admissibility of the request made and whether it is considered necessary to maintain the suspension while the constitutionality case is decided, if it is declared admissible.

c) Employee benefits

As indicated in Note 5.2, Prosegur maintains defined benefit schemes in Germany, Brazil, Honduras, Nicaragua, El Salvador, Ecuador and Mexico. The actuarial valuation, carried out by qualified actuaries, of the value of the benefits to which the Company is committed is updated at the 2021 financial year-end.

The defined benefit schemes of Germany and Ecuador consist of Pension and retirement schemes, while the defined benefit scheme for Mexico consists of a seniority scheme.

Prosegur has a defined benefit scheme comprising post-employment healthcare offered to employees in Brazil compliant with local legislation (Act 9656).

In addition, Honduras, Nicaragua and El Salvador have obligations, as determined by law, under defined benefit schemes arising from the termination of employment contracts by dismissal or following a mutual agreement.

d) Other risks

The provision for other risks, amounting to EUR 72,911 thousand at 31 December 2021 (EUR 62,187 thousand at 31 December 2020), includes a range of items.

The settlement of these provisions is probable, but both the value of the final settlement as well as the moment are uncertain and depend upon the outcome of the processes under way.

We list the most significant ones below:

Tax risks

These refer mainly to tax risks in Brazil, Spain and Argentina, amounting to EUR 57,162 thousand (EUR 49,745 thousand at 31 December 2020).

The tax risks associated with Brazil are linked to various items, mainly with direct and indirect municipal and state tax charges, as well as provisions linked to the combination of the Nordeste and Transpev business from previous years. In Argentina and Spain they are mainly related to municipal and provincial taxes and other taxes of insignificant amounts.

Cash Group uses 'the most probable outcome' as the basis for assessing uncertain potential tax risks. Tax risks are classified as material on the basis of opinions in external studies according to the analysis of case law in the matter of reference. Moreover, internal analysis are conducted based on similar cases that have occurred in the past or at other companies.

At each close of quarter, a detailed analysis of each of the tax contingencies is made. This analysis refers to quantification, qualification and the level of provision associated with the risk. An annual letter with the respective analysis and assessment by an independent expert is used to determine these parameters in the most significant risks. On that basis, the provision to be recognised in the Consolidated Annual Accounts is duly adapted.

Provisions charged against and reversals credited to the income statement are included under other expenses in Note 4.

Comcare Australia

In 2021, payments have been made for commitments associated to the occupational accident insurance plan in Australia amounting to EUR 652 thousand (EUR 684 thousand in 2020). The allocation for the year amounted to EUR 128 thousand, reaching a provisional total of EUR 2,020 thousand (EUR 2,498 thousand in 2020), of which there is no other amount that fall due in the short term (2020: EUR 427 thousand).

Accruals with personnel

These provisions include the accrued incentive in the 18-20 Plan, the 21-23 Plan and the Long-Term Incentive Plan for the Executive President, Managing Director and Management of the Cash Group.

During the year, provisions to profit/(loss) have been made for EUR 6,609 thousand and a reversal amounting to EUR 1,436 thousand.

As of 31 December 2020, the only long-term incentive in effect was the 18-20 Plan. During 2021, the net impact on the income statement was an expense of EUR 621 thousand, as the targets set for liquidation of the entire 18-20 Plan were not attained due to the COVID-19 pandemic, and as a result, the provision was adapted to a new liquidation.

The 18-20 Plan is generally linked to the creation of value in the 2018-2020 period and envisages the payment of cash incentives, calculated for certain beneficiaries based on the share price. In the vast majority of cases, the Plan measures target achievement from 1 January 2018 until 31 December 2020 and length of service from 1 January 2018 until 31 May 2023.

The 21-23 Plan is generally linked to the creation of value in the 2021-2023 period and envisages the payment of cash incentives, calculated for certain beneficiaries based on the share price. In the vast majority of cases, the Plan measures target achievement from 1 January 2021 until 31 December 2023 and length of service from 1 January 2021 until 31 May 2026.

For both plans, for the purpose of determining the value of each share to which the beneficiary is entitled, the average quotation price of Prosegur Cash shares on the Stock Exchange will be taken as reference during the last fifteen trading sessions of the month prior to the one in which the shares must be delivered.

The Retention Plan, which is linked to ensuring adequate talent retention and promoting the digital transformation of the Cash Group for 2021-2023, was also approved in 2021. The plan envisages the payment of share incentives. In the vast majority of cases, the measures target achievement from 1 January 2021 until 31 December 2023 and length of service from 1 January 2021 until 31 October 2024. The first payment in shares will be in October 2022, the second in October 2023 and the final one in October 2024. Cash Group recognises a straight-line expense in the income statement during the length of service of the Plan, as well as the corresponding increase in equity, based on the fair value of the shares committed when the Plan was granted. The fair value of the shares at the moment of the granting was EUR 0.695 per share.

At 31 December 2021, the positive impact on retained earnings and other reserves of the equity was EUR 1,743 thousand.

In 2021, a total amount of EUR 2,080 thousand associated with the last payment of the 18-20 Plan was settled.

Quantification of the total incentive will depend on the degree of achievement of the targets established in line with the strategic plan.

22. Financial liabilities

The details and composition of financial liabilities and the corresponding terms and conditions are as follows:

	Average	2021		Average	2020
Thousands of Euros	interest rate	Non current	current	interest rate	Non current	current
Debentures and negotiable securities	1.38%	596,444	7,471	1.38%	595,576	7,471
Bank borrowings	4.24%	79,009	87,632	4.81%	195,616	123,879
Credit accounts	18.61%	—	3,804	22.36%	—	17,481
Other payables	10.42%	40,949	34,616	10.08%	35,337	37,721
		716,402	133,523		826,529	186,552

The details and composition of financial liabilities and the corresponding terms and conditions are as follows:

			2021		2020
Thousands of Euros	Currency	Years of maturity	Non current	current	Non current	current
Debentures and other negotiable securities	Euro	2026	596,444	7,471	595,576	7,471
Bank borrowings	Euro	2022	—	39,848	154,104	70,106
Bank borrowings	Brazilian Real	2022	—	2,538	12	2,382
Bank borrowings	Australian Dollar	2022-2023	32,255	15,370	37,746	6,624
Bank borrowings	Peruvian Sol	2022-2026	46,449	13,566	250	2,165
Bank borrowings	Argentine Peso	2022	—	8,979	—	30,375
Bank borrowings	Other currencies	2022-2025	305	7,331	3,504	12,227
Credit accounts	Euro	2022	—	1,605	—	4,933
Credit accounts	Argentine Peso	2022	—	1,817	—	9,416
Credit accounts	Other currencies	2022	—	382	—	3,132
Other payables	Euro	2022-2025	9,765	68	11,699	6,384
Other payables	Brazilian Real	2022-2032	7,749	9,448	9,293	14,230
Other payables	Argentine Peso	2022	—	1,782	—	8,465
Other payables	Other currencies	2022-2033	23,435	23,318	14,345	8,642
			716,402	133,523	826,529	186,552

At 31 December 2021 drawdowns from credit facilities in current accounts totalled EUR 3,804 thousand (2020: EUR 17,481 thousand). Details of undrawn credit facilities are as follows:

		Thousands of Euros
	2021	2020
Maturing in less than 1 year	179,930	129,199
Maturing in more than 1 year	300,000	145,000
	479,930	274,199

Credit facilities are subject to various interest rate reviews in 2021.

Debentures and other negotiable securities

On 4 December 2017, Prosegur Cash, S.A. issued uncovered bonds with a nominal amount of EUR 600,000 thousand, maturing on 4 February 2026. The issue was made in the Euromarket as part of the Euro Medium Term Note Programme. This issue will enable the deferment of maturities of part of the debt of Prosegur Cash and the diversification of funding sources. The bonds are traded on the secondary market, on the Irish Stock Exchange. They accrue an annual coupon of 1.38% payable at the end of each year.

Syndicated credit facility (Spain)

On 10 February 2017, Prosegur Cash, S.A. arranged a new five-year syndicated credit financing facility of EUR 300,000 thousand for a five-year term to afford the Company long-term liquidity. On 7 February 2019 this syndicated credit facility was renewed, and its maturity extended by another 5 years. In February 2020 the maturity was extended until February 2025. Additionally, in February 2021, the maturity was extended again until February 2026.

At 31 December 2021, no amount had been drawn down for this transaction (EUR 155,000 thousand at 31 December 2020).

The interest rate of the drawdowns under the syndicated credit financing facility is equal to Euribor plus an adjustable spread based on the Company's rating.

Prosegur Cash is compliant with applicable covenants relative to the syndicated financial transaction at 2021 year end.

Syndicated loan (Australia)

At 31 December 2021, no amount had been drawn down for this transaction (EUR 155,000 thousand at 31 December 2020). The first maturity was in the first half of 2021 for AUD 10,000 thousand. The second and third maturities will come in 2022 and 2023 (10,000 thousand Australian dollars and 50,000 thousand Australian dollars, respectively).

At 31 December 2021, the drawn down capital corresponding to the loan amounts to AUD 60,000 thousand (at 31 December 2021 equivalent to: EUR 38,425 thousand). At 31 December 2020, the drawn down capital corresponding to the loan amounts to AUD 70,000 thousand (at 31 December 2020 equivalent to: EUR 44,036 thousand).

Loan in Peru

On 2 June 2021, Prosegur Cash, via its subsidiary in Peru Prosegur Compañía de Seguridad, S.A., arranged a credit financing facility for PEN 300,000 thousand (equivalent at 31 December 2021 to: EUR 66,252 thousand) with maturity at five years. At 31 December 2021, the drawn down capital was PEN 270,000 thousand (at 31 December 2021 equivalent to: EUR 59,627 thousand).

Bailment

In Australia, Cash Group has access to facilities under bailment for the supply of cash to automated teller machines belonging to Prosegur Cash. The cash is, according to the contract, owned by the provider. Prosegur Cash has access to this money for the sole purpose of loading cash into the ATMs belonging to it, supplied by this contract. The settlement of the assets and liabilities is carried out via regulated clearing systems, such as the right of set-off of balances. As a result of the foregoing, no assets and liabilities are shown in these consolidated financial statements for this item. The amount of outstanding cash at 31 December 2021 was AUD 229,836 thousand (equivalent to EUR 147,190 thousand) (at 31 December 2020 it was AUD 251,833 thousand, equivalent to EUR 158,245 thousand).

Other payables

Other payables mainly relate to pending payments of business combinations formed in both the present year and previous years (Note 27). Details of other payables are as follows:

	Thousands of Euros
	2021	2020
Non-current
Deferred and contingent payments relating to acquisitions	35,426	31,218
Others	5,523	4,119
	40,949	35,337
current Deferred and contingent payments relating to acquisitions	34,131	37,445
Others	485	276
	34,616	37,721

The deferred and contingent payments relating to acquisitions are as follows:

		2021		2020
Thousands of Euros	Currency	Non-current	current	Non-current	current
Made in 2017
Fiel Vigilancia e Transp. Values	Brazilian Real	—	134	—	127
Nordeste and Transbank Group	Brazilian Real	—	2,745	—	2,614
Contesta Group	Euro	—	—	—	1,233
Made in 2018
Business combinations in LatAm	Sundry	—	529	1,603	3,615
Business combinations in AOA	Sundry	11,116	4,564	9,647	4,085
Business combinations in Europe	Euro	—	—	1,103	1,167
Made in 2019
Business combinations in LatAm	Sundry	—	7,488	—	16,629
Business combinations in AOA	Sundry	—	1,156	—	1,156
Business combinations in Europe	Euro	—	—	6,138	3,081
Made in 2020
Business combinations in LatAm	Sundry	6,183	—	9,197	3,738
Business combinations in Europe	Euro	6,510	—	3,530	—
Made in 2021
Business combinations in LatAm	Sundry	11,617	17,515	—	—
		35,426	34,131	31,218	37,445

23. Suppliers and other payables

Details of suppliers and other payables are as follows:

	Thousands of Euros
	2021	2020
Trade payables	130,059	102,652
Accruals with personnel	89,148	79,960
Social Security and other taxes	100,340	86,778
Other payables	43,667	57,501
	363,214	326,891

Accruals with personnel

The Cash Group's remuneration policy for indirect personnel includes a variable component determined through specifically designed incentive programmes, which aim to recognise and reward Cash Group employees' contribution to its success by achieving or surpassing targets and developing the necessary skills for excellence in their duties and responsibilities. The incentive programme directly links variable remuneration to the achievement of targets established by the Cash Group Management or the employee's direct superior over a given time.

The cost recognised in the income statement for that scheme under employee benefits expense amounts to EUR 19,031 thousand (2020: EUR 21,546 thousand).

Accruals with personnel include EUR 450 thousand relating to the incentive programme (2020: EUR 1,613 thousand) (Note 21).

The employee benefits expense also includes salaries payable and accrued extraordinary salary instalments.

Other payables

This heading includes EUR 7,408 thousand in dividends to non-group shareholders for the interim dividend approved on 20 December 2021 by the Board of Directors (2020: EUR 14,687 thousand) (Note 9).

Information on average payment period to suppliers. Final Provision Two of Act 31/2014, of 3 December

Information on deferred payments to suppliers by consolidated Spanish companies is as follows:

	2021	2020
	Days	Days
Average payment period to suppliers	60	63
Ratio of transactions paid	62	65
Ratio of transactions pending payment	39	25
	Thousands of Euros	Thousands of Euros
Total payments made	34,483	47,149
Total payments pending	4,174	2,654

In accordance with the ICAC Resolution, the calculation of the average payment period to suppliers has considered the commercial transactions corresponding to the delivery of goods or the rendering

of services accrued through the date of entry into force of Act 31/2014, 3 December, i.e. 24 December 2014. The information in these Consolidated Annual Accounts concerning payments to suppliers refers solely to companies located in Spain that are fully consolidated.

For the exclusive purposes of providing the disclosures envisaged in this Resolution, suppliers are deemed as commercial creditors holding debts for the supply of goods or services, included under Suppliers and other payables of current liabilities of the consolidated balance sheet.

'Average payment period to suppliers' is understood as the period between the delivery of the goods or the rendering of the services by the supplier and the material payment of the transaction.

The maximum legal term of payment applicable to the consolidated companies in 2021, according to Act 11/2013, of 26 July, is of 30 days (unless the conditions set forth in the Act allowing the maximum payment period to be raised to 60 days are fulfilled).

24. Taxation

Prosegur Cash consolidates as part of the Prosegur Tax Group in Spain. As well as Prosegur Compañía de Seguridad, S.A., as the parent, this consolidated tax group also comprises the Spanish subsidiaries that meet the requirements set out in regulations governing consolidated taxation.

Moreover, the Prosegur Cash Group, files consolidated corporate income tax returns in the following countries: Luxembourg, Portugal and Australia.

• In Luxembourg, Prosegur has a consolidated tax group formed by Luxpai CIT SARL and Pitco Reinsurance S.A.
• In Portugal, Prosegur Logistica e Tratamento de Valores Portugal, S.A. is a member of a consolidated tax group along with the vast majority of Prosegur subsidiaries in Portugal.
• In Australia, Prosegur has a consolidated tax group made up of the following Australian companies: Prosegur Australia Holdings Pty Limited, Prosegur Australia Investments Pty Limited, Prosegur Australia Pty Limited, Prosegur Services Pty Limited, Prosegur Asset Management (Prosegur Group subsidiary), Precinct Hub Pty Limited and Prosegur Foreign Exchange Pty Limited.

The rest of subsidiaries file tax returns in accordance with tax legislation in force in the countries in which they operate.

Details of the income tax expense, for current tax and deferred tax, are as follows:

Thousands of Euros	2021	2020
Current tax	75,020	74,631
Deferred tax	(807)	(1,946)
	74,213	72,685

The main items making up the deferred tax expense/(income) are as follows:

Thousands of Euros	2021	2020
Tax loss carryforwards and Tax Deductions	(1,959)	2,310
Provisions	(787)	(3,000)
Intangible asset amortisation	1,541	(1,049)
Others	398	(207)
	(807)	(1,946)

The deferred tax assets arising from intangible assets are mainly from corporate mergers in Brazil which took place during previous years. Tax legislation in Brazil allows for accelerated amortisation.

The calculation of the tax expense, based on pre-tax profit for the year, is as follows:

Thousands of Euros	2021	2020
Profit before tax	107,268	88,315
Tax rate	25 %	25 %
Profit/(loss) adjusted to tax rate	26,817	22,079
Permanent differences	18,434	25,297
Effect of applying different tax rates	7,023	2,662
Tax Losses and deferred tax adjustments	19,599	16,772
Tax credits	2,340	5,875
Income tax expense	74,213	72,685

The effective tax rate stood at 69.2% for 2021, compared to 82.3% in the same period of 2020, which represents a drop of 13.1 percentage points, mainly due to improved profit/(loss).

The tax rates in the countries in which the Prosegur Cash Group operates are as follows:

	2021	2020
Germany	30.5 %	30.5 %
Argentina	35.0 %	30.0 %
Australia	30.0 %	30.0 %
Brazil	34.0 %	34.0 %
Chile	27.0 %	27.0 %
Colombia	25.0 %	32.0 %
Costa Rica	31.0 %	30.0 %
El Salvador	30.0 %	30.0 %
Ecuador	30.0 %	25.0 %
Spain	25.0 %	25.0 %
The Philippines	25.0 %	30.0 %
Guatemala	25.0 %	25.0 %
The Netherlands	25.0 %	25.0 %
Honduras	30.0 %	30.0 %
India	28.0 %	28.0 %
Indonesia	22.0 %	22.0 %
Luxembourg	24.9 %	24.9 %
Mexico	30.0 %	30.0 %
Nicaragua	30.0 %	30.0 %
Paraguay	10.0 %	10.0 %
Peru	29.5 %	29.5 %
Portugal	22.5 %	22.5 %
Singapore	17.0 %	17.0 %
Uruguay	25.0 %	25.0 %

In 2021, some local legislations amended their tax rates for the next few years. Accordingly, the tax rate for the following years will be as shown below:

	Type of taxation
Tax rates starting from:	Colombia	Indonesia
1 January 2022	35%	20%

Movements in deferred tax assets and liabilities and changes in their composition are as follows:

Deferred tax assets

Thousands of Euros	Balance at 31 December 2019	Charged against or credited to the income statement	Business combinations (Note 27)	Charged against or credited to equity	Exit from the scope	Translation differences	Balance at 31 December 2020	Charged against or credited to the income statement	Business combinations (Note 27)	Charged against or credited to equity	Exit from the scope	Translation differences	Balance at 31 December 2021
Depreciation of PPE	1,582	172	—	—	(232)	(141)	1,381	830	8	—	(23)	(32)	2,164
Amortisation of Intangible Assets	1,056	(483)	—	—	—	(245)	328	141	—	—	(6)	(3)	460
Losses and Tax Deductions	26,069	(2,310)	—	—	(10)	(1,338)	22,411	1,959	—	—	(27)	(72)	24,271
Provisions and Others	59,276	4,390	—	(2)	(5,598)	(13,512)	44,554	1,631	576	—	(24)	184	46,921
	87,983	1,769	—	(2)	(5,840)	(15,236)	68,674	4,561	584	—	(80)	77	73,816

Deferred tax liabilities

Thousands of Euros	Balance at 31 December 2019	Charged against or credited to the income statement	Business combinations (Note 27)	Charged against or credited to equity	Exit from the scope	Translation differences	Balance at 31 December 2020	Charged against or credited to the income statement	Business combinations (Note 27)	Charged against or credited to equity	Exit from the scope	Translation differences	Balance at 31 December 2021
Amortisation and depreciation of assets	(37,847)	1,532	(8,072)	1,764	—	9,232	(33,391)	(1,682)	(9,713)	—	3,978	(42)	(40,850)
Stock impairment	(59)	59	—	—	—	—	—	—	—	—	—	—	—
Brand (Note 6)	(9,010)	—	—	—	—	—	(9,010)	—	—	—	—	—	(9,010)
Provisions	(30,801)	(1,390)	—	—	2,701	579	(28,911)	(844)	(51)	—	—	(61)	(29,867)
Others	17	(24)	—	—	—	62	55	(1,228)	—	—	60	54	(1,059)
	(77,700)	177	(8,072)	1,764	2,701	9,873	(71,257)	(3,754)	(9,764)	—	4,038	(49)	(80,786)

Tax loss assets at 31 December 2021 has been EUR 19,787 thousand (2020: EUR 22,385 thousand).

Details of deferred tax assets and liabilities that are expected to be realised or reversed in periods exceeding 12 months are as follows:

Thousands of Euros	2021	2020
Deferred tax assets	62,990	60,235
Deferred tax liabilities	(78,656)	(68,497)
	(15,666)	(8,262)

The breakdown by country of the main deferred tax assets and liabilities, in thousands of Euros, is as follows:

	2021	2020
Thousands of Euros	Deferred tax assets	Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities
Brazil	33,763	(10,076)	31,270	(11,789)
Germany	19,637	(499)	18,817	(551)
Argentina	2,982	(17,932)	911	(10,438)
Spain	2,356	(13,291)	2,825	(17,374)
Others	15,078	(38,988)	14,851	(31,105)
Total	73,816	(80,786)	68,674	(71,257)

Prosegur Cash does not have uncapitalised deductions pending application.

Deferred tax assets regarding tax loss carryforwards are recognised provided that it is probable that sufficient taxable income will be available against which to offset the asset.

The consolidated balance sheet presents the amounts of deferred taxes in accordance with the provisions of IAS 12 in relation to offsetting current tax assets and liabilities in certain conditions, which are fulfilled in Spain, Luxembourg, Portugal and Australia. In the breakdown of deferred tax assets and liabilities these are shown without offsetting.

Details of tax loss carryforwards and the year until which they can be offset at 31 December 2021 are as follows:

	Thousands of Euros
Year	Total	Non	Capitalised
2022	168	capitalised 168	—
Subsequent years or no time limit	211,689	146,481	65,208
	211,857	146,649	65,208

	Total amount	2022	Subsequent years or no time
		Thousands of Euros
The breakdown of tax carryforwards and prescriptive periods at 31 December 2021 is as follows:

	Total amount	2022	Subsequent years or no time limit
Germany	63,514	—	63,514
Argentina	66,104	—	66,104
Australia	57,153	—	57,153
Brazil	3,115	—	3,115
Chile	11,503	—	11,503
Colombia	2,691	—	2,691
Costa Rica	55	—	55
Ecuador	102	—	102
Spain	302	—	302
The Philippines	1,210	—	1,210
The Netherlands	467	—	467
Indonesia	2,586	—	2,586
Luxembourg	454	—	454
Peru	108	—	108
Portugal	209	—	209
Uruguay	2,284	168	2,116
Total	211,857	168	211,689

Detail of the tax loss carryforwards offset and pending offsetting at 31 December 2021 is as follows:

	Thousands of Euros
	Total	Non-capitalised	Capitalised
Germany	63,514	1,899	61,615
Argentina	66,104	65,856	248
Australia	57,153	57,153	—
Brazil	3,115	3,115	—
Chile	11,503	8,469	3,034
Colombia	2,691	2,691	—
Costa Rica	55	55	—
Ecuador	102	—	102
Spain	302	302	—
The Philippines	1,210	1,210	—
The Netherlands	467	467	—
Indonesia	2,586	2,586	—
Luxembourg	454	454	—
Peru	108	108	—
Portugal	209	—	209
Uruguay	2,284	2,284	—
Total	211,857	146,649	65,208

At 31 December 2021 most of the tax carryforwards pending offset are in Argentina, Australia and Chile.

Of the EUR 211,689 thousand of tax carryforwards offset and pending offsetting by the Group with a period of limitation extending beyond 2022, there is no time limit for offsetting EUR 135,587 thousand and there is a time limit for the remaining EUR 76,102 thousand.

Deferred tax assets are recognised provided that it is likely that sufficient taxable income will be generated against which the temporary differences can be offset. The recoverable amount of a CGU is determined based on its value in use. These calculations are based on cash flow projections, excluding the effects of potential future improvements in the return on assets, from the five-year financial budgets approved by Management.

On 4 April 2019 the Brazilian Tax Authority notified Prosegur Brasil S.A. Transportadora de Valores e Segurança of a tax settlement decision regarding Corporate Income Tax, Social Security and withholdings at source in relation to the corporate cost incurred from 2014 to 2016. The amount under that notice was BRL 214,820 thousand (tax liability BRL 102,938 thousand, interest BRL 30,833 thousand and penalties BRL 81,049 thousand). The resolution was challenged by the Company in first instance in the administrative stage on 29 April 2019, and was resolved on 30 July 2019 with a reduction of 44,877 thousand reals. The Company has proceeded to appeal this in the second administrative instance, where a favourable resolution to this lawsuit is anticipated.

On 10 July 2020 notice of the opening of a general inspection procedure was received for Prosegur Servicios de Efectivo de España, S.A., Juncadella Prosegur Internacional, S.A. and Prosegur Global CIT, S.A. for the 2015-2018 tax periods for Corporate Income Tax and for the 2016-2018 tax periods for all other tax items.

Due to the different interpretations that could be made of the fiscal legislation in force, additional tax liabilities could arise in the event of inspection. In any event, the Directors of the Company do not consider that any such liabilities that could arise would have a significant effect on the Consolidated Annual Accounts.

In 2019, the Company implemented IFRIC 23, referring to the application of the recognition and valuation criteria of IAS 12 when there is uncertainty over the acceptance by the tax authority of a specific tax treatment used by the Prosegur Cash Group.

With this, if the Company considers it is likely that the tax authority will accept an uncertain tax treatment, it will establish the taxable gain (loss), the tax bases, unused tax losses, unused tax credits or the tax rates consistent with the tax treatment used or intended to be used in its income tax returns, without allocating any provision for that uncertain tax treatment.

However, if the Company considers it unlikely that the tax authority will accept an uncertain tax treatment, it will reflect the effect of the uncertainty to establish the taxable gain (loss), the tax bases, unused tax losses or credits or the corresponding tax rates. In this manner the effect of the uncertainty for each uncertain tax treatment will be reflected by the Company by using the most likely amount or the expected value of the probability-weighted amounts.

The variation of the provision of IFRIC 23 has been taken to 'income tax expenses', with that variation having entailed a lower expense of EUR 1,975 thousand. At 31 December 2021 the IFRIC 23 provision amounts to EUR 23,504 thousand.

In 2021 no corporate restructuring operations were carried out.

In 2020 the following corporate restructuring operations were carried out under the neutral tax regime:

• In January 2020, the takeover merger of Transfederal Transporte de Valores Ltda by Prosegur Brasil S.A. Transportadora de Valores e Segurança was formalised in Brazil.
• In March 2020, the takeover merger of Transvip Transporte de Valores e Vigilância Patrimonial Ltda. by Prosegur Brasil S.A. Transportadora de Valores e Segurança was formalised in Brazil.

• In December 2020, the takeover merger of TEVSUR Cia Ltda. by Transportadora Ecuatoriana de Valores TEVCOL Cia Ltda. was formalised in Ecuador.
• In December 2020, the takeover merger of BaS Solution Gmbh by Prosegur Cash Services Germany Gmbh was formalised in Germany.

25. Contingencies

Sureties and guarantees

The Cash Group has contingent liabilities for bank and other guarantees related with its normal business operations that are not expected to give rise to any significant liabilities.

Guarantees provided by the Cash Group to third parties are as follows:

Thousands of Euros	2021	2020
Commercial guarantees	107,391	152,850
Financial guarantees	107,642	141,091
	215,033	293,941

Commercial guarantees include those given to clients.

Financial guarantees include mainly those relating to civil and labour-related litigation in process, totalling EUR 78,033 thousand (EUR 95,606 thousand at 31 December 2020). The deposits and guarantees for litigation underway in Brazil amount to EUR 21,108 thousand (EUR 34,814 thousand at 31 December 2020) (Note 21).

Processes in course

The Cash Group has an internal response and investigation procedure for the existence of potential suspicions or indicators regarding signs of the breach of applicable legislation and internal regulations, including incidents received through its Report channel, whether these suspicions or signs manifest themselves within the scope of a legal or court proceeding or are discovered at any previous time.

Certain investigation processes are currently being conducted by regulatory bodies and internal investigations in some of the countries in which the Cash Group operates, and which are pending a final resolution, mainly in regard to alleged anti-competitive practices.

At 31 December 2021, the Cash Group updated its assessment on legal risks, and potential fines and sanctions that could arise from these situations, on the basis of the considerations of its internal and external legal and forensic specialists, and on the information available in each case.

As a result, the Cash Group has recorded a provision on its best estimate of the risks it considers potentially probable in light of the current state of those investigations and proceedings (Note 21).

The Cash Group also considers that there are certain situations currently under investigation that could lead to the payment of fines and sanctions, as well as to the recognition of other liabilities. The most significant ones are listed below:

National Spanish Commission on Markets and Competition

On 22 April 2015, Spain's National Commission on Markets and Competition (hereinafter, the CNMC) commenced disciplinary proceedings against Prosegur, Prosegur Servicios de Efectivo España,

S.L.U. (currently a subsidiary of Prosegur Cash) and Loomis España, S.A. for alleged anticompetitive practices in accordance with European Union legislation. On 10 November 2016, the Competition Chamber of the CNMC ruled to fine Prosegur and its subsidiary EUR 39,420 thousand.

On 13 January 2017 Prosegur announced it planned to file, in the National Court (Audiencia Nacional), a contentious-administrative appeal against said ruling and requested the adoption of an interim measure consisting of suspending payment of the fine imposed.

On 13 February 2017, the National Court accepted the appeal proposed by Prosegur for processing, commencing the relevant proceedings, prior to formal filing of the appeal. On 6 September 2018, Prosegur filed the relevant appeal which at present remains pending resolution by the National Court in respect of the underlying matter.

With regard to the request for the interim measure, on 31 March 2017, the National Court agreed to it and suspended execution of the CNMC resolution in particular concerning payment of the fine by Prosegur, on the condition that, within a maximum of two months, Prosegur should provide surety or any other guarantee in the amount of the fine. On 9 June 2017 Prosegur presented the National Court with a bank guarantee amounting to EUR 39,420 thousand.

Prosegur will undertake solely and at its own expense the defence of Prosegur and Prosegur Servicios de Efectivo España, S.L. with regard to the disciplinary proceedings and the resolution by the Competition Chamber of the CNMC Council on 10 November 2016, with exclusive powers in respect of the supervision and control of said defence and of the contentious-administrative proceedings. In accordance with the agreements existing between both companies, Prosegur will hold Prosegur CASH and its subsidiary harmless from the potential negative economic effects of said proceedings.

Chilean National Economic Prosecutor

In 2018, the Chilean National Economic Prosecutor (FNE) began an investigation into potential anticompetitive practices due to agreed actions and the exchange of sensitive commercial information between competitors between 2017 and 2018. In view of this situation, the Cash Group has involved specialists to assess the legal risk and perform internal investigation tasks. The risk associated with this open procedure was evaluated as possible based on the considerations of these specialists.

In 2021, the FNE requested sanctions, including a fine of approximately EUR 22,000 thousand from a Cash Group subsidiary in Chile (maximum sanction). On the date of these consolidated annual accounts, the legal proceeding continues without the FNE having notified all parties to the proceeding, and therefore the period for the parties to file responses has not yet commenced.

Additionally, after the request for inapplicability due to unconstitutionality by one of the parties, the Constitutional Court of Chile decided to suspend the trial before the Court for the Defence of Free Competition (TDLC) until the admissibility of the requirement is resolved. Said suspension, which was finalised by TDLC resolution on 19 January 2022, also covers the remaining notifications.

The continuity of this suspension depends on the decision of the Constitutional Court regarding the admissibility of the request made and whether it considers it necessary to maintain this measure if it is accepted for processing.

The Cash Group has recorded the provisions that it believes will cover the possible risk of cash outflow on the basis of similar experiences in the past, and with the assistance of legal specialists.

In addition, the Cash Group performed a review of the arguments in support of a possible risk, concluding that those arguments did not suitably support that assessment, and that there was no

new information to justify a change in the assessment, which is why this provision was recognised against equity (Note 21).

26. Commitments

Purchase commitments for fixed assets

Investments committed but not made at the close of the year are as follows:

Thousands of Euros	2021	2020
Property, Plant and Equipment	11,322	6,736
Other intangible assets	2,130	506
	13,452	7,242

At 31 December 2021, the commitments correspond mainly to the purchase of armoured vehicles, machinery and plants (Note 11).

Lease commitments

As indicated in Note 32.7, the Prosegur Cash Group has chosen not to recognise in the balance sheet the lease liabilities and the right of use asset corresponding to short term and low value lease contracts.

The commitments deriving from these lease contracts are as follows:

At 31 December 2021		Thousands of Euros
Type	Less than 1 year	1 to 5 years
Buildings	391	458
Vehicles	154	617
Other assets	102	203
	647	1,278
At 31 December 2020		Thousands of Euros
Type	Less than 1 year	1 to 5 years
Buildings	430	910
Vehicles	141	188
	571	1,098

27. Business combinations

Details of changes in goodwill are presented in Note 13.

27.1.Goodwill added in 2021

Details of the net assets acquired and goodwill recognised on business combinations during the year are as follows:

Thousands of Euros	Cash payment	Deferred at fair value	Total purchase price	Fair value of identifiable net assets	Goodwill
Business combinations in LatAm	24,267	34,835	59,102	33,919	25,183
Business combinations in Europe	110	40	150	150	—
	24,377	34,875	59,252	34,069	25,183

Calculations relating to business combinations are provisional and may be adjusted for up to a year from the acquisition date.

Goodwill is not tax deductible.

Had the businesses acquired in 2021 been acquired on 1 January 2021, consolidated income statement revenues would have increased by EUR 25,102 thousand and consolidated profit/(loss) for the year would have decreased by EUR 1,690 thousand.

Prosegur Cash has recognised under administration and sales expenses of the consolidated income statement transaction costs of EUR 1,953 thousand (2020: EUR 2,030 thousand).

The cash outflow incurred to purchase these businesses, net of cash acquired, is as follows:

Thousands of Euros	Cash payment	Cash and cash equivalents acquired	Cash outflow in acquisition
Business combinations in LatAm	24,267	(6,058)	18,209
Business combinations in Europe	110	—	110
	24,377	(6,058)	18,319

Calculations relating to business combinations are provisional and may be adjusted for up to a year from its acquisition date.

Business combinations in LatAm

During the 2021 financial year, Prosegur Cash acquired a series of companies in LatAm engaged in the management of payments and receipts. The total purchase price was EUR 59,102 thousand, comprising a cash consideration of EUR 24,267 thousand, a deferred contingent consideration amounting to a total of EUR 21,771 thousand, due in 2022, 2023 and 2024 and a deferred payment of EUR 13,064 thousand, due in 2022.

The revenue and net profits contributed to the consolidated income statement for 2021 amounted to EUR 36,189 thousand and EUR 2,202 thousand respectively.

(Thousands of Euros)	Carrying amount of the business acquired	Fair value
Cash and cash equivalents	6,058	6,058
Property, Plant and Equipment	4,032	4,032
Inventories	340	340
Clients and other receivables	5,394	5,394
Suppliers and other payables	(9,852)	(9,852)
Current tax assets	1,395	1,395
Current tax liabilities	(1,273)	(1,273)
Non-current financial assets	353	353
Other intangible assets	2,333	41,340
Deferred tax liabilities	—	(9,713)
Provisions	—	—
Long-term financial liabilities	(4,739)	(4,739)
Deferred tax asset	584	584
Identifiable net assets acquired	4,625	33,919

The goodwill on this acquisition has been allocated to the LatAm segment and mainly reflects the profitability of the business and major synergies expected to arise as a result of the acquisition by Prosegur Cash. The intangible assets acquired comprise client relationships (EUR 19,272 thousand) with a useful life of between 2 and 14 years, trademarks (EUR 15,871 thousand) with a useful indefinite life, and other intangible assets (EUR 3,864 thousand) with a useful life between 7 years (note 14).

Business combinations in Europe

In 2021, Prosegur Cash acquired in Europe a series of assets relative to cash-in-transit and cash management services. The total purchase price was EUR 150 thousand, comprising a cash payment of EUR 110 thousand and a deferred payment of EUR 40 thousand maturing in 2022.

The revenue and net profits contributed to the consolidated income statement for 2021 amounted to EUR 144 thousand and EUR 50 thousand respectively.

The assets and liabilities that arose from these acquisitions are as follows:

(Thousands of Euros)	Carrying amount of the business acquired	Fair value
Property, Plant and Equipment	50	50
Other intangible assets	—	100
Identifiable net assets acquired	50	150

The goodwill on this acquisition has been allocated to the Europe segment and mainly reflects the profitability of the business and major synergies expected to arise as a result of the acquisition by the Cash Group. The intangible assets acquired comprise client relationships (EUR 100 thousand) with a useful life of 5 years (Note 14).

27.2. Goodwill added in 2020 with valuation completed in 2021

Details of the net assets acquired and goodwill recognised on business combinations during 2020 for which measurement was completed in 2021 are as follows:

Thousands of Euros	Cash payment	Deferred at fair value	Total purchase price	Fair value of identifiable net assets	Goodwill
Business combinations in Europe	2,247	6,318	8,565	3,236	5,329
	2,247	6,318	8,565	3,236	5,329

Goodwill is not tax deductible.

At 31 December 2020, total goodwill of EUR 3,018 thousand was recognised on these additions for the Europe business combinations. The difference generated by the verification of the fair values in 2021 corresponded to the reassessment of the postponed contingent payments associated with Europe Cash business combinations. Prosegur Cash has not restated 2020 figures as the changes are not significant.

The cash outflow incurred to purchase these business, net of cash acquired, is as follows:

Thousands of Euros	Cash payment	Cash and cash equivalents acquired	Cash outflow in acquisition
Business combinations in Europe	2,247	(227)	2,020
	2,247	(227)	2,020

Business combinations in Europe

During the 2020, Prosegur Cash acquired a company in Europe that provides on-line purchase and sale services through a web platform that connects sellers with end clients. The total purchase price was EUR 8,565 thousand, comprising a cash payment of EUR 2,247 thousand, and a deferred contingent consideration totalling EUR 6,318 thousand maturing in 2023 and 2025.

The assets and liabilities that arose from this acquisition are as follows:

(Thousands of Euros)	Carrying amount of the business acquired	Fair value
Cash and cash equivalents	227	227
Current tax assets	49	49
Clients and other receivables	87	87
Suppliers and other payables	(54)	(54)
Non-current financial assets	4	4
Other intangible assets	3	3,896
Deferred tax liabilities	—	(973)
Identifiable net assets acquired	316	3,236

The goodwill on this acquisition was allocated to the Europe segment and mainly reflects the profitability of the business and major synergies expected to arise as a result of the acquisition by Prosegur. The intangible assets acquired comprise other intangible assets (EUR 3,376 thousand) with a useful life of 10 years, and trademarks (EUR 517 thousand) with an indefinite useful life.

27.3.Goodwill added in year 2020 not reviewed in 2021

Details of the net assets acquired and goodwill recognised on business combinations during 2020 whose valuation has not been reviewed in 2021 are as follows:

Thousands of Euros	Cash payment	Deferred at fair value	Total purchase price	Fair value of identifiable net assets	Goodwill
Business combinations in LatAm	24,816	50,863	75,679	15,747	59,932
Business combinations in AOA	10,454	—	10,454	10,346	108
	35,270	50,863	86,133	26,093	60,040

The cash outflow incurred to purchase these business, net of cash acquired, is as follows:

Thousands of Euros	Cash payment	Cash and cash equivalents acquired	Cash outflow in acquisition
Business combinations in LatAm	24,816	(6,661)	18,155
Business combinations in AOA	10,454	—	10,454
	35,270	(6,661)	28,609

Business combinations in LatAm

During 2020, Prosegur Cash acquired a number of security companies in LatAm providing cash-intransit, cash management and ancillary banking services. The total purchase price was EUR 75,679 thousand, comprising a cash consideration of EUR 24,816 thousand, a deferred contingent consideration amounting to a total of EUR 27,691 thousand, due in 2020 and 2024 and a deferred payment of EUR 23,172 thousand, due in 2020, 2021, 2022, 2023, 2024 and 2025.

The assets and liabilities that arose from this acquisition are as follows:

(Thousands of Euros)	Carrying amount of the business acquired	Fair value
Cash and cash equivalents	6,661	6,661
Property, plant and equipment (Note 11)	16,191	16,191
Inventories	199	199
Deferred tax assets	7,271	7,271
Current tax liabilities	(105)	(105)
Current tax assets	1,017	1,017
Clients and other receivables	10,228	10,228
Suppliers and other payables	(15,347)	(15,347)
Provisions	(24,014)	(24,014)
Rights of use (Note 12)	108	108
Long-term lease liabilities	(33)	(33)
Short-term lease liabilities	(75)	(75)
Other intangible assets	33	40,154
Other current liabilities	(33)	(33)
Deferred tax liabilities	(454)	(7,962)
Short-term financial liabilities	(13,257)	(13,257)
Long-term financial liabilities	(5,256)	(5,256)
Identifiable net assets acquired	(16,866)	15,747

The goodwill on this acquisition was allocated to the LatAm segment and mainly reflects the profitability of the business and major synergies expected to arise as a result of the acquisition by Prosegur CASH. The intangible assets acquired comprise client relationships (EUR 40,121 thousand) with a useful life between 12 and 20 years.

Business combinations in AOA

In 2020, Prosegur Cash acquired assets relative to cash-in-transit and cash management services. The total purchase price was EUR 10,454 thousand, entirely comprising a cash payment.

The assets and liabilities that arose from this acquisition are as follows:

(Thousands of Euros)	Carrying amount of the business acquired	Fair value
Property, plant and equipment (Note 11)	6,368	6,368
Other intangible assets	—	3,978
Identifiable net assets acquired	6,368	10,346

The goodwill on this acquisition was allocated to the AOA segment and mainly reflects the profitability of the business and major synergies expected to arise as a result of the acquisition by Prosegur Cash. The intangible assets acquired comprise other intangible assets (EUR 3,978 thousand) with a useful life of 7 years.

28. Related parties

Prosegur Cash, S.A. is a subsidiary of the Spanish listed company Prosegur Compañía de Seguridad, S.A., which currently holds 57.30% of the shares, and indirectly controls another 21.98% through its 100%-owned investee, Prosegur Assets Management, S.L.U. The remaining 20.72% of the shares are held by various shareholders (Note 20).

28.1. Balances with Group companies

The Cash Group has amounts on the balance sheet with companies belonging to the Prosegur Group but not included in the consolidation scope of the Cash Group:

Thousands of Euros	2021	2020
Short-term investments in Group companies and associates
Credits	4,055	4,066
Trade and other receivables
Clients	1,550	2,797
Other receivables	42,234	36,695
Total current assets with Prosegur Group companies	47,839	43,558
Total assets	47,839	43,558
Loans granted by group companies
Payable Dividends (Note 9)	22,495	44,932
Trade and other payables
Suppliers	20,262	14,963
Other payables	31,385	19,643
Total current liabilities with Prosegur Group companies	74,142	79,538
Total liabilities	74,142	79,538

As a result of the tax consolidation of the Prosegur Group in Spain, at 31 December 2021 amounts payable by Prosegur to the Cash Group, mainly relating to the payment of corporate income tax (paid

in April, October and December) were included under the heading Other receivables, and corresponded to 2021 and 2020.

Additionally, the heading Non-current financial assets of the statement of financial positions, also includes two loans granted for a total amount of EUR 2,331 thousand signed in February and May 2017, maturing in six years (2020: EUR 2,190 thousand) (Note 17) from the Cash Group to the Indian company SIS Cash Services Private, Ltd., consolidated using the equity method (Note 15).

Financial transactions

In 2021 and 2020 there were no loan transactions between related parties.

Investment operations

In 2021 and 2020 there were no investment operations with the Prosegur Group.

Trade transactions

At 31 December 2021, trade receivables between the Cash Group and the Prosegur Group in favour of the Cash Group amount to EUR 1,550 thousand (EUR 2,797 thousand in 2020).

The amounts are associated with trade receivables as yet unpaid by the Prosegur Group to the Cash Group.

At 31 December 2021, trade receivables between the Cash Group and the Prosegur Group in favour of the Prosegur Group amount to EUR 20,262 thousand (EUR 34,606 thousand at 31 December 2020). These amounts correspond, among other items, to prices for transfers, utilities and leases and trade accounts pending payment by Prosegur Cash to the Prosegur Group.

28.2. Transactions with Prosegur Group companies

The Cash Group performs transactions with companies belonging to the Prosegur Group but not included in the consolidation scope of the Cash Group:

Thousands of Euros	2021	2020
Income
Provision of services	1,938	1,325
Financial income (Note 7)	248	411
Total income	2,186	1,736
Expense
Other services	(110,664)	(101,611)
Financial expenses (Note 7)	(1,744)	(1,380)
Total expenses	(112,408)	(102,991)

The financial expenses item includes the interest that the Cash Group has accrued for updating lease liabilities with Prosegur Group companies (Note 7).

Services rendered and other income includes the following items of income and expense:

Thousands of Euros	2021	2020
Leases and Supplies	573	576
Services rendered	1,365	749
Total income from other services	1,938	1,325
Thousands of Euros	2021	2020
Expense for other services
Brand (Note 4)	(15,859)	(15,129)
Management Fees (Note 4)	(76,268)	(67,497)
Leases and Supplies	(3,156)	(5,842)
IFRS 16 depreciation	(9,346)	(7,322)
Services rendered	(6,035)	(5,821)
Total expense for other services	(110,664)	(101,611)

28.3. Remuneration to members of the Board of Directors and Senior Management of the Parent Company

1. Remuneration of members of the Board of Directors

The total remuneration accrued by members of the Board of Directors is as follows:

	Thousands of Euros
	2021	2020
Fixed remuneration	1,390	1,059
Variable remuneration	533	483
Remuneration for membership of the Board	180	120
Per diems	228	170
	2,331	1,832

2. Remuneration of Senior Management personnel

Senior Management personnel are the Cash Group employees who hold, de facto or de jure, Senior Management positions reporting directly to the governing body or Managing director, including those with power of attorney not limited to specific areas or matters or areas or matters not forming part of the entity's statutory activity.

The total remuneration accrued by Senior Management personnel of the Cash Group is as follows:

	Thousands of Euros
	2021	2020
Fixed remuneration	1,837	1,886
Variable remuneration	731	743
Remuneration in kind	91	83
	2,659	2,712

Civil liability insurance expenses covering the Board of Directors and Senior Management amount to EUR 111 thousand and are included in other expenses under administration and sales expenses (2020: EUR 75 thousand).

28.4. Information required by article 229 of the Spanish Companies Act

As required by articles 228, 229 and 230 of the Revised Text of the Spanish Companies Act, approved by Royal Legislative Decree 1/2010 of 2 July 2010 and amended by Act 31/2014 concerning improvements to corporate governance, the members of the Board of Directors and their related parties declare that they have not been involved in any direct or indirect conflicts of interest with the Company in 2021.

Occasionally, and even before the appointment of Mr Daniel Guillermo Entrecanales Domecq as a Director of the Company, Revolution Publicidad, S.L. has provided the Cash Group with advertising agency, media, marketing and communication services, within the ordinary course of business and in market terms. The Cash Group does not work solely with the agency Revolution Publicidad, S.L., but receives advertising, media, marketing and communication services from other companies too. The invoicing from Revolution Publicidad, S.L. to the Cash Group is not material and does not represent a significant amount. At 31 December 2021, fees totalled EUR 48 thousand (EUR 41 thousand at 31 December 2020).

The Board of Directors considers that the business relationship between the agency Revolution Publicidad, S.L. and the Cash Group, due to its occasional, non-exclusive nature in the ordinary course of business, and its scant significance in the terms outlined, in no way affects the independence of Mr Daniel Guillermo Entrecanales Domecq to discharge the duties of Independent Director of the Cash Group.

During the year, Euroforum Escorial, S.A. (controlled by Gubel, S.L.) invoiced Prosegur Cash EUR 82 thousand for hotel services (EUR 89 thousand at 31 December 2020). Prosegur is controlled by Gubel S.L., which was incorporated in Madrid, and holds 59.368% of the shares of Prosegur, which consolidates Prosegur Cash in its consolidated financial statements.

Furthermore, Agrocinegética San Huberto, S.L. (controlled by Gubel, S.L.) had billed Prosegur Cash for EUR 50 thousand (at 31 December 2020 EUR 192 thousand).

In December 2018 a lease contract was signed with Proactinmo, S.L.U. (controlled by Gubel, S.L.) for the building located in calle San Máximo 3 and 9 in Madrid; the term of the lease is 5 years, and it was signed under market conditions. A total expense of EUR 635 thousand was incurred in relation to this contract in 2021 (2020: EUR 975 thousand).

Also during the year, Prosegur Cash provided services to Gubel, S.L. amounting to EUR 17 thousand (EUR 15 thousand at 31 December 2020).

Moreover, Mr Christian Gut Revoredo and Mr Antonio Rubio Merino respectively hold the posts of Managing Director of Prosegur and Executive President of Prosegur Cash and Proprietary Director (representing Prosegur) at Prosegur Cash. Ms Chantal Gut Revoredo is a Proprietary Director at Prosegur and Prosegur Cash. The Board of Directors considers that their respective posts at Prosegur in no way affect their independence when discharging their duties at Prosegur Cash.

29. Financial risk management and fair value

29.1. Financial risk factors

The Cash Group's activities are exposed to currency risk, interest rate risk, price risk, credit risk and liquidity risk. The Cash Group's global risk management programme aims to reduce these risks using a variety of methods, including financial instruments.

The Financial Department identifies, proposes and carries out the management of these risks along with other operating units of the Cash Group in accordance with guidelines issued by the Board of Directors.

Currency risk

The Cash Group operates on an international level and is therefore exposed to currency risks for currency operations. Currency risk arises when future trade transactions, equity investments, profit and loss from operating activities and financial positions are denominated in a foreign currency other than the functional currency of each one of the Cash Group companies.

To control the risk arising in these operations, the Cash Group's policy is to use appropriate instruments to balance and neutralise the risks associated with monetary in- and outflows of assets and liabilities, considering market expectations.

As the Cash Group intends to remain in the long term in the foreign markets in which it is present, it does not hedge equity investments in those markets, assuming the risk relating to the translation to euros of the assets and liabilities denominated in foreign currencies.

The following provides details of the Cash Group's exposure to currency risk, with details on the carrying amounts of the financial instruments denominated in a foreign currency other than the functional one of each country:

31 December 2021

Thousands of Euros	Euro		US Dollar Argentine Peso	Colombian Peso	Australian Dollar	Other currency	Total position
Non-current financial assets	—	53	—	—	—	91	144
Total non-current assets	—	53	—	—	—	91	144
Clients and other receivables	1,633	3,620	99	—	—	—	5,352
Other current financial assets	47,827	—	—	—	—	—	47,827
Cash and cash equivalents	13,630	5,260	—	—	54	—	18,944
Total current assets	63,090	8,880	99	—	54	—	72,123
Financial liabilities	—	—	—	—	—	12,012	12,012
Non-current liabilities	—	—	—	—	—	12,012	12,012
Suppliers and other payables	4,705	4,242	99	99	55	15	9,215
Financial liabilities	6,630	1,752	31	—	—	—	8,413
Current liabilities	11,335	5,994	130	99	55	15	17,628
Net position	51,755	2,939	(31)	(99)	(1)	(11,936)	42,627

At 31 December 2020

Thousands of Euros	Euro		US Dollar Argentine Peso	Colombian Peso	Australian Dollar	Other currency	Total position
Non-current financial assets	—	20	—	—	—	—	20
Total non-current assets	—	20	—	—	—	—	20
Clients and other receivables	2,440	5,495	249	—	—	3,410	11,594
Other current financial assets	94,716	—	—	—	28,403	—	123,119
Cash and cash equivalents	20,597	42,037	—	—	1,606	149	64,389
Total current assets	117,753	47,531	249	—	30,009	3,559	199,101
Financial liabilities	—	50	—	4,612	—	—	4,662
Non-current liabilities	—	50	—	4,612	—	—	4,662
Suppliers and other payables	1,708	4,631	118	19	112	(11)	6,577
Financial liabilities	57	1,542	8,465	2,371	—	—	12,435
Current liabilities	1,765	6,173	8,583	2,390	112	(11)	19,012
Net position	115,988	41,329	(8,334)	(7,002)	29,897	3,570	175,448

Details of the main average and year-end exchange rates to euros of the foreign currencies in which the Cash Group operates are as follows:

		31 December 2021		31 December 2020
		Average	Closing rate	Average	Closing rate
US Dollar	USD	1.18	1.13	1.14	1.23
Australian Dollar	AUD	1.57	1.56	1.66	1.59
Brazilian Real	BRL	6.38	6.31	5.89	6.37
Argentine Peso	ARS	112.34	116.23	80.76	103.14
Chilean Peso	CLP	897.23	962.99	902.96	872.76
Mexican Peso	MXP	23.99	23.14	24.52	24.42
Paraguayan Guaraní	PYG	8,014.06	7,791.27	7,734.65	8,487.61
Peruvian Nuevo Sol	PEN	4.59	4.53	3.99	4.45
Uruguayan Peso	UYU	51.54	50.62	47.97	51.96
Colombian Peso	COP	4,424.99	4,509.06	4,215.17	4,212.02

The strengthening/(weakening) of the euro vs the Brazilian Real, Argentine Peso, Chilean Peso and Peruvian Nuevo Sol at 31 December would increase/(decrease) the profit and loss and the equity in the amounts shown below.

This analysis is based on a variation of the foreign currency exchange rate (other than the functional currency, Note 32.5) that the Cash Group deems reasonably possible at the end of the reporting period in question (increase and decrease in the exchange rate). This analysis assumes that all other variables, particularly interest rates, remain constant. Sensitivity in connection with the income statement is associated with the impact on the financial results heading of the income statement of an increase or decrease in the year-end exchange rate in respect of all outstanding amounts in currencies other than the functional currency of each subsidiary (Note 32.5). Moreover, sensitivity associated with equity is calculated on the net assets of each subsidiary and shows the fluctuations in the respective functional currencies against the euro.

	Increase exchange rate		Decrease exchange rate
	Equity	Profit/(loss)	Equity	Profit/(loss)
31 December 2021
Brazilian Real (15% fluctuation)	35,409	6,054	(47,907)	(8,190)
Argentine Peso (25% fluctuation)	20,290	786	(33,817)	(1,310)
Chilean Peso (10% fluctuation)	5,073	140	(6,200)	(171)
Peruvian Nuevo Sol (10% fluctuation)	5,065	138	(6,190)	(169)
Colombian Peso (10% fluctuation)	5,737	1,021	(7,012)	(1,248)
31 December 2020
Brazilian Real (15% fluctuation)	36,642	8,471	(49,574)	(11,461)
Argentine Peso (25% fluctuation)	17,848	6,943	(29,746)	(11,571)
Chilean Peso (10% fluctuation)	6,350	310	(7,761)	(379)
Peruvian Nuevo Sol (10% fluctuation)	4,914	12	(6,006)	(15)
Colombian Peso (10% fluctuation)	6,249	(227)	(7,637)	(1,231)

Credit risk

The Cash Group is not significantly exposed to credit risk. Bad debts are not a significant factor in the sector in which it operates. Independent credit ratings of clients are used if available. Otherwise, the Credit Control Department assesses each client's credit rating, considering financial position, past experience and other factors, as well as a credit risk impairment based on the expected loss. Individual credit limits are established based on internal and external ratings in accordance with the limits set by the Financial Department. The use of the credit limits is monitored regularly.

The Cash Group has formal procedures for detecting objective evidence of impairment on trade receivables. As a consequence, It identifies significant delays in payments and the methods to be followed to estimate the impairment loss based on an individual analysis by business area. The value impairment of receivables from commercial clients as of 31 December 2021 amounts to EUR 12,773 thousand (2020: EUR 8,079 thousand) (Note 18). As the credit ratings relating to trade receivables not included in this provision are sufficient, this provision is considered to cover the credit risk.

Details of the percentage of total Cash Group turnover represented by the eight main clients are as follows:

	2021	2020
Counterparty
Client 1	3.68%	3.46%
Client 2	3.48%	3.17%
Client 3	3.46%	2.38%
Client 4	2.84%	2.20%
Client 5	1.93%	1.91%
Client 6	1.84%	1.88%
Client 7	1.58%	1.44%
Client 8	1.54%	1.34%

In Spain, the Collections Department manages an approximate monthly volume of 3,490 clients with monthly average turnover of EUR 3,936 per client. 90% of payments are made by bank transfer and the remaining 10% in notes (cheques, promissory notes, etc.).

Liquidity risk

A prudent liquidity risk management policy is based on having sufficient cash and marketable securities, as well as sufficient short-, medium- and long-term financing through credit facilities to reach the Cash Group's business targets safely, efficiently and on time. The Corporate Treasury Department aims to maintain sufficient liquidity and availability to guarantee the Cash Group's business operations.

Management monitors the Cash Group's liquidity reserves, which comprise credit available for drawdown (Note 22) and cash and cash equivalents (Note 19), based on expected cash flows.

The Cash Group's liquidity position for 2021 and 2020 is based on the following:

• Cash and cash equivalents of EUR 250,804 thousand at 31 December 2021 (2020: EUR 401,773 thousand) (Note 19).
• EUR 479,930 thousand available in undrawn credit facilities at 31 December 2021 (2020: EUR 274,199 thousand) (Note 22).
• Cash flows from operating activities in 2021 amounted to EUR 241,071 thousand (2020: EUR 237,373 thousand).

The amounts presented in this table reflect the cash flows stipulated in each one of the contracts:

				2021
Thousands of Euros	Carrying amount	Contractual cash flows	6 months or less	6 months to 1 year		1-2 years 2-5 years	More than 5 years
Non-derivative financial liabilities
Debentures and other negotiable securities	603,915	641,250	8,250	—	8,250	624,750	—
Bank borrowings	166,641	182,933	80,165	12,908	23,381	66,479	—
Credit accounts	3,804	4,307	2,553	1,754	—	—	—
Other payables	75,565	92,168	11,722	30,360	22,361	27,725	—
Payables to Group companies (Note 28)	74,142	74,142	74,142	—	—	—	—
Lease liabilities	87,427	125,698	14,905	14,085	22,671	51,999	22,038
Suppliers and other payables	363,214	363,214	363,214	—	—	—	—
	1,374,708	1,483,712	554,951	59,107	76,663	770,953	22,038

		2020
Thousands of Euros	Carrying amount	Contractual cash flows	6 months or less	6 months to 1 year		1-2 years 2-5 years	More than 5 years
Non-derivative financial liabilities
Debentures and other negotiable securities	603,047	641,250	8,250	—	8,250	16,500	608,250
Bank borrowings	319,495	361,110	117,935	26,162	26,629	190,384	—
Credit accounts	17,481	20,017	14,239	5,778	—	—	—
Other payables	73,058	96,565	33,449	10,136	10,166	33,917	8,897
Payables to Group companies (Note 28)	79,538	79,538	79,538	—	—	—	—
Lease liabilities	80,366	120,289	13,018	15,299	22,720	45,141	24,111
Suppliers and other payables	326,891	326,891	326,891	—	—	—	—
	1,499,876	1,645,659	593,320	57,375	67,765	285,942	641,258

Finally, systematic forecasts are prepared for cash generation and requirements, allowing the Cash Group to determine and monitor its liquidity position on an ongoing basis.

Interest rate, cash flow and fair value risks

The Cash Group is exposed to interest rate risk due to its monetary assets and liabilities maintained in its statement of financial position.

The exposure of the Cash Group's financial liabilities (excluding other payables) at the contract review dates is as follows:

	6 months	6 to 12		More than
Thousands of Euros	or less	months	1 to 5 years	5 years	Total
31 December 2021
Total financial liabilities (fixed rate)	43,257	22,351	695,999	11,103	772,710
Total financial liabilities (floating rate)	55,217	1,605	32,255	—	89,077
	98,474	23,956	728,254	11,103	861,787
At 31 December 2020
Total financial liabilities (fixed rate)	72,146	14,782	48,815	608,280	744,023
Total financial liabilities (floating rate)	64,320	20,197	191,849	—	276,366
	136,466	34,979	240,664	608,280	1,020,389

The Cash Group analyses its interest rate risk exposure dynamically. In 2021, the majority of the Cash Group's financial liabilities at floating interest rates are denominated in Euros and Australian Dollars.

A simulation of various scenarios, considering refinancing, the renewal of current positions, alternative financing and hedges is performed. On the basis of these scenarios, the Cash Group calculates the impact on the profit/(loss) of a given variation of the interest rate. Each simulation uses the same variation in the interest rate for all currencies. These scenarios are only analysed for the liabilities that represent the most significant positions in which a floating interest rate is paid.

Details of financial liabilities, indicating the portion considered to be hedged, at a fixed rate, are as follows:

31 December 2021	Total debt	Hedged debt	Debt exposure
Europe	722,906	633,280	89,626
AOA	69,921	15,799	54,122
LatAm	144,525	123,634	20,891
	937,352	772,713	164,639

At 31 December 2020	Total debt	Hedged debt	Debt exposure
Europe	892,149	628,907	263,242
AOA	112,315	51,579	60,736
LatAm	88,984	63,540	25,444
	1,093,447	744,026	349,422

Debt includes a bond issuance and bank borrowings at fixed rates. There are liabilities for credit accounts and fixed interest rate bank borrowings in Chile, Peru, Argentina, Colombia, Brazil, Uruguay and the Philippines.

At 31 December 2021, had interest rates on bank loans and borrowings been 100 basis points higher, with the other variables remaining constant, post-tax profit would have been EUR 507 thousand lower (2020: EUR 1,292 thousand lower), mainly as a result of higher interest expense on variable rate loans.

29.2. Capital risk management

The Cash Group's capital management is aimed at safeguarding its capacity to continue operating as a going concern, with the aim of providing returns for shareholders and profits for other equity holders, while maintaining an optimum capital structure and reducing the cost of capital.

To maintain and adjust the capital structure, the Cash Group can adjust the amount of dividends payable to shareholders, reimburse capital, issue new shares or dispose of assets to reduce debt.

Like other groups in the sector, the Cash Group controls its capital on a leverage ratio basis in order to optimise its financial structure. This ratio is calculated as net financial debt divided by total capital. Net financial debt is the sum of current and non-current financial liabilities (excluding other non-bank borrowings) plus/less net derivative financial instruments, less cash and cash equivalents, less other current financial assets, as presented in the statement of financial position. Total capital is the sum of equity plus net financial debt, as presented in the statement of financial position.

The leverage ratio for the Cash Group business is calculated as follows:

Thousands of Euros	2021	2020
Financial liabilities excluding deferred payments	774,360	940,023
Less: Cash and cash equivalents (Note 19)	(250,804)	(401,773)
Net financial debt (excluding other non-bank payables)	523,556	538,250
Other non-bank payables (Note 22)	72,358	72,206
Non-bank payables with Group (Note 28)	—	—
Own shares	(11,392)	(18,749)
Lease liabilities (Note 12)	87,427	80,366
Total Net Financial Debt	671,949	672,072
Net Assets	76,232	80,235
Total capital: Net financial debt excluding other non-bank payables and net assets	599,788	618,485
Leverage ratio	0.87	0.87

29.3. Financial instruments and fair value

Classification and fair value

All financial assets and liabilities have a carrying amount similar to their fair value due mainly to the short-term maturities of these instruments, with the exception of contingent payments.

31 December 2021	Carrying amount		Fair value
Thousands of Euros	Loans and receivables	Financial assets held for trading	Debts and payables	Total	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value
Deposits and guarantees	9,222	—	—	9,222
Short-term receivables with Group companies (Note 28)	47,839	—	—	47,839
Clients and other receivables (Note 18)	280,175	—	—	280,175
Cash and cash equivalents (Note 19)	250,804	—	—	250,804
	588,040	—	—	588,040
Financial liabilities at fair value
Contingent payments generated during the year	—	14,166	—	14,166	—	—	14,166	14,166
	—	14,166	—	14,166
Financial liabilities not measured at fair value
Financial liabilities due to the issuance of debentures	—	—	(603,915)	(603,915)	(562,291)	—	—	(562,291)
Financial liabilities with credit institutions	—	—	(170,445)	(170,445)	—	(166,590)	—	(166,590)
Other financial liabilities	—	—	(75,565)	(75,565)	—	(75,565)	—	(75,565)
Short-term payables to Group companies (Note 28)	—	—	(74,142)	(74,142)	—	(74,142)	—	(74,142)
Lease liabilities			(87,427)	(87,427)		(87,427)		(87,427)
Suppliers and other payables (Note 23)	—	—	(363,214)	(363,214)	—	(363,214)	—	(363,214)
	—	—	(1,374,708)	(1,374,708)

31 December 2020						Fair value
Thousands of Euros	Loans and receivables	Financial assets held for trading	Debts and payables	Total	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value
Deposits and guarantees	3,040	—	—	3,040
Short-term receivables with Group companies (Note 28)	43,558	—	—	43,558
Clients and other receivables (Note 18)	275,253	—	—	275,253
Cash and cash equivalents (Note 19)	401,773	—	—	401,773
	723,624	—	—	723,624
Contingent payments generated during the year	—	(3,357)	—	(3,357)	—	—	(3,357)	(3,357)
	—	(3,357)	—	(3,357)
Financial liabilities not measured at fair value
Financial liabilities due to the issuance of debentures	—	—	(603,047)	(603,047)	554,427	—	—	554,427
Financial liabilities with credit institutions	—	—	(336,976)	(336,976)	—	(330,965)	—	(330,965)
Other financial liabilities	—	—	(73,058)	(73,058)	—	(73,058)	—	(73,058)
Short-term payables to Group companies (Note 28)	—	—	(79,538)	(79,538)	—	(79,538)	—	(79,538)
Lease liabilities			(80,366)	(80,366)		(80,366)		(80,366)
Suppliers and other payables (Note 23)	—	—	(326,891)	(326,891)		(326,891)		(326,891)
	—	—	(1,499,876)	(1,499,876)

Valuation methods for financial instruments not measured at fair value:

The following are the valuation methods used in 2021 to determine Level 3 fair values, as well as the unobservable inputs employed and the quantitative information of each significant non-observable Level 3 input. The sensitivity analyses are as follows:

Type	Valuation method (*)	(Unobservable) inputs employed	Interrelationship between key inputs and fair value	Sensitivity analysis
Contingent payments	Discounted cash flows: The valuation model considers the present value of the net cash flows to be generated by the business. The expected cash flows are determined considering the scenarios that may be exercised by EBIT forecasts, the amount to be paid in each scenario and the probability of each scenario. The expected net cash flows are discounted using a risk-adjusted discount rate.	-EBIT	-The estimated fair value would increase (decrease) according to the value of EBIT.	-If estimated EBIT was within 5% of the agreed scenario, the value of the contingent payments would have varied by EUR 13 thousand; if it was within 10%, the value of contingent payments would have varied by EUR 38 thousand. -If estimated EBIT was within - 5% of the agreed scenario, the value of the contingent payments would have varied by EUR -13 thousand; if it was within -10%, the value of contingent payments would have varied by EUR -26 thousand.

Valuation methods for financial instruments not measured at fair value:

Type	Valuation method	(Unobservable) inputs employed
Financial liabilities with credit institutions	Discounted cash flows.	Not applicable
Finance lease liabilities	Discounted cash flows.	Not applicable
Other financial liabilities	Discounted cash flows.	Not applicable

Transfer of assets and liabilities among the various levels

During the reporting period ended 31 December 2021 and 2020 there were no transfers of assets and liabilities among the various levels.

30. Other information

The average number of employees at the Cash Group, including its equity-accounted subsidiaries, is as follows:

	2021	2020
Operations personnel	39,676	41,722
Other	3,366	2,863
	43,042	44,585

The average headcount of operations personnel employed by equity-accounted subsidiaries in 2021 is 8,649 employees (2020: 8,495 employees).

The average headcount of personnel employed in Spain with a disability of 33% or more, by category, is as follows:

	2021	2020
Operations personnel	15	40
Other	3	2
	18	42

At year end the breakdown by gender of the Cash Group personnel is as follows:

		2021		2020
	Man	Woman	Man	Woman
Operations personnel	30,095	10,002	32,320	11,543
Other	1,381	888	1,372	885
	31,476	10,890	33,692	12,428

The breakdown by gender of members of Senior Management of the Cash Group is as follows:

		2021		2020
	Man	Woman	Man	Woman
Board of Directors	6	3	6	3
Senior Management	8	2	8	2
	14	5	14	5

Ernst & Young, S.L., auditors of the Cash Group 2021 financial statements, invoiced the following fees for professional services during the year:

Thousands of Euros	2021	2020
Audit	354	380
Other services	35	25
	389	405

Audit services detailed in the above table include the total fees for services rendered in 2021, irrespective of the date of invoice.

Additionally, other Ernst & Young affiliates invoiced the following fees for professional services to the Cash Group in 2021 and 2020 respectively:

Thousands of Euros	2021	2020
Audit services	713	523
Tax advisory services	168	122
Other services	62	134
	943	779

Other audit-related services correspond mainly to limited reviews of interim financial statements, procedural reports agreed on compliance with covenants, and comfort letters relating to securities issues provided by Ernst & Young S.L. to Prosegur Cash, S.A. and subsidiaries during the years ended 31 December 2021 and 2020, respectively.

On the other hand, other auditors have invoiced the Prosegur Cash Group the following fees and expenses for professional services during the year:

Thousands of Euros	2021	2020
Audit services	—	—
	—	—

31. Events after the reporting date

At the date of formulation of these consolidated annual accounts, there are no significant events after the reporting date.

32. Summary of the main accounting policies

The main accounting policies used in the preparation of these Consolidated Annual Accounts are described below. These principles have been applied consistently throughout the reporting periods presented, with the exception of the contents of Note 32.1.

32.1. Accounting standards

These Consolidated Annual Accounts have been prepared in accordance with the same accounting principles used by the Prosegur Cash Group for the preparation of the Consolidated Annual Accounts dated 1 January 2020, with the exception of the compulsory standards and modifications adopted by the European Union from 1 January 2021.

a) Standards effective from 01 January 2021

– Rent concessions related to COVID-19 beyond 30 June 2021 (Amendment to IFRS 16)

These amendments allow, as a practical solution, lessees to choose not to count the rent concessions derived from COVID-19, as an amendment of the lease. Where appropriate, the lessee will account for the concessions applying the criteria of IFRS 16 Leases as if said concessions were not a modification.

This practical solution can only be applied to rent concessions that have been a direct consequence of COVID-19. Which requires meeting the following conditions: (i) the change in the lease payments results in a review of the lease consideration that is substantially the same as, or less than, the consideration that was immediately prior to the change; (ii) any reduction in lease payments only affects payments that were originally due on or before 30 June 2021, and; (iii) there are no substantive changes in other terms and conditions of the lease.

– Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Benchmark interest rate reform.

On the date of these Consolidated Annual Accounts, none of these regulations is expected to have a significant effect on the consolidated financial statements of the Group.

b) Standards effective from 01 January 2020

– Amendments to IFRS 3 Business combinations

The amendments change the business definition in IFRS 3 to help entities determine whether a transaction should be recorded as a business combination or as the acquisition of a group of assets. This distinction is important, as the acquirer only recognises goodwill when a business is acquired.

The new definition of business emphasises that the product of a business is to provide goods and services to clients that generate investment income (such as dividends or interest) or that generate other income from ordinary activities; whereas the previous definition focused on providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants.

– Amendments to IFRS 16 rent concessions related to COVID-19

Other standards that were amended without having any significant impact on the Prosegur Cash Group are as follows:

• Revised version of the Conceptual Framework of IFRS. The revised conceptual framework includes a new chapter on valuation, improves definitions and guidance, and clarifies more important areas such as prudence and uncertainty valuation.
• Amendments to IAS 1 and IAS 8: Definition of materiality. Changes are made to the definition of material to make it easier to make judgments about what is material.

c) Standards and interpretations issued, but which are not applicable in this year

• Amendments to IAS 1 Presentation of financial statements: classification of financial liabilities as current or non-current. The IASB clarifies the requirements to be applied in classifying liabilities as current or non-current.
• Amendments to IAS 1 and to the IFRS Practice Statement on Disclosure of Accounting Policies. The IASB has included guidance and examples for applying judgment in identifying which accounting policies are material. The amendments replace the criterion of disclosing significant accounting policies with material accounting policies.
• Amendments to IAS 8 Definition of accounting estimates. The definition of accounting estimate is updated, which clarifies the difference between changes in accounting estimate, changes in accounting policies and corrections of errors.
• Amendments to IFRS 3 Business combinations. Reference to the conceptual framework. These interpretations replace the reference to the 1989 Conceptual Framework with a reference to that of 2018, without significantly changing its requirements.
• Amendments to IAS 16 Property, plant and equipment: Amounts obtained prior to the intended use. These changes prohibit deducting the amount of the sales obtained from the asset from the acquisition cost of the assets while it taken to the place and given conditions necessary for it to be able to operate in the manner foreseen by the Management. Instead, these amounts will be recorded in the income statement.

– Amendments to IAS 37 Costs of fulfilling a contract. The costs that entities have to include when evaluating whether a contract is onerous or in losses are detailed. The amendments propose a 'direct cost approach'.

32.2. Consolidation principles

Subsidiaries

Subsidiaries, including structured entities, are those controlled by the Company, either directly or indirectly via subsidiaries. The Company controls a subsidiary when as a result of its involvement therein it is exposed or entitled to variable returns and has the ability to influence such returns via the power exercised on that entity. The Company has the power when it holds substantive rights in force which provide it with the ability to manage relevant activities. The Company has exposure or rights to variable returns for its involvement in the subsidiary when the returns obtained from said involvement may vary according to the entity's economic performance.

The income, expenses and cash flows of subsidiaries are included in the Consolidated Annual Accounts from the date on which the Prosegur Cash Group obtains control until the date that control ceases.

Transactions and balances with the Prosegur Cash Group companies and unrealised profit or loss were eliminated in the consolidation process. However, unrealised losses were considered to be an indicator of the impairment of the assets transferred.

Subsidiary accounting policies are changed where necessary for consistency with the principles adopted by the Prosegur Cash Group.

The annual accounts or financial statements of the subsidiaries used in the consolidation process have been prepared as of the same date and for the same period as those of the Parent.

Business combinations

In business combinations, the Prosegur Cash Group applies the acquisition method. The acquisition date considered in the financial statements presented is the date on which the Prosegur Cash Group obtains control of the acquiree.

The consideration paid for the business combination is determined on the acquisition date based on the sum of the fair values of the assets delivered, liabilities incurred or assumed, equity instruments issued and any contingent liabilities that depend on future events or compliance with certain conditions in exchange for the control of the acquired business.

The consideration paid excludes any disbursement that does not form part of the exchange for the business acquired. Costs relating to the acquisition are recognised as an expense as they are incurred.

On the date of acquisition the Prosegur Cash Group recognises the acquired assets, the liabilities assumed (and any non-controlling interest) at fair value. A non-controlling interest in the acquired business is recognised by the amount pertaining to the percentage share in the fair value of the acquired net assets. This criterion is only applicable to non-controlling interests that grant present access to economic rights and the right to the proportional share of the net assets of the acquired entity in the event of liquidation. Otherwise, the non-controlling interests are valued at fair value or value based on market conditions. Liabilities assumed include contingent liabilities insofar as they represent present obligations arising from past events and their fair value may be reliably measured. The Prosegur Cash Group also recognises indemnification assets transferred by the seller at the same time and using the same valuation criteria applied to the item that is subject to indemnification

from the acquired business, taking into consideration, where applicable, the insolvency risk and any contractual limit on the indemnity amount.

The assets and liabilities assumed are classified and designated for their subsequent valuation on the basis of the contractual agreements, economic conditions, accounting and operating policies and other conditions on the acquisition date, except the lease and insurance contracts.

The excess of the consideration given, plus the value assigned to non-controlling interests, over the value of the net assets acquired and liabilities assumed is recognised as goodwill. As appropriate, any shortfall after evaluating the consideration given and the value assigned to non-controlling interests, and after the identification and valuation of the net assets acquired, is recognised in the income statement.

If it is only possible to determine a business combination provisionally at the end of the reporting period, the identifiable net assets are initially recognised at their provisional amounts and adjustments made during the valuation period are recognised as if they had been known at that date. Comparative figures for the previous year are restated where applicable. In any event, adjustments to the provisional values only reflect information relating to facts and circumstances that existed at the acquisition date and, if known, would have affected the measurement of the amounts recognised at that date (Note 27).

Potential profit from tax losses and other deferred tax assets of the acquiree not recognised due to not meeting the recognition criteria on the acquisition date, is accounted for, to the extent that it does not correspond to an adjustment in the valuation period, as gains from income tax.

The contingent consideration is classified in accordance with the underlying contractual terms as a financial asset or financial liability, equity instrument or provision. Subsequent changes in the fair value of a financial asset or financial liability are recognised in consolidated profit/(loss) or other comprehensive income, provided that they do not arise from a valuation period adjustment. Contingent consideration classified as equity is not remeasured, and subsequent settlement is recognised in equity. Contingent consideration classified as a provision is subsequently recognised in accordance with the relevant valuation standard.

The cost of the business combination includes contingent consideration, if this is probable at the acquisition date and can be reliably estimated. Subsequent recognition of contingent consideration or subsequent variations to contingent considerations are recognised as a prospective adjustment to the cost of the business combination.

Non-controlling interests

Non-controlling interests in subsidiaries are recognised at the acquisition date at the proportional part of the fair value of the identifiable net assets. Non-controlling interests in subsidiaries acquired prior to the transition date were recognised at the proportional part of the equity of the subsidiaries at the date of first consolidation.

The consolidated profit or loss for the year and changes in equity of the subsidiaries attributable to the Prosegur Cash Group holding and non-controlling interests after consolidation adjustments and eliminations are determined in accordance with the ownership percentage at year end, without considering the possible exercise or conversion of potential voting rights and after discounting the effect of dividends, agreed or otherwise, on preference shares with cumulative rights classified in equity accounts. However, the Prosegur Cash Group holding and non-controlling interests are calculated taking into account the possible exercise of potential voting rights and other derivative financial instruments which, in substance, currently allow access to the economic benefits associated with the interests held, such as entitlement to a share in future dividends and changes in the value of subsidiaries.

Profit/(loss) and each component of other comprehensive income are allocated to equity attributable to shareholders of the Parent and to non-controlling interests in proportion to their investment, even if this results in a balance receivable from non-controlling interests. Agreements entered into between the Prosegur Cash Group and non-controlling interests are recognised as a separate transaction.

Associates

Associates are those significantly influenced by the Company, directly or indirectly, via subsidiaries. Significant influence means the power to intervene in a company's finance and operating policy, without implying the existence of control or joint control thereupon. When assessing whether an entity has significant influence, the existence of potential voting rights that are exercisable or convertible at the end of each reporting period are considered, as well as the potential voting rights held by the Prosegur Cash Group or by another entity.

Investments in associates are accounted for using the equity method from the date on which significant influence is exercised until the date when the Company can no longer prove the existence of said significant influence.

Investments in associates are initially recognised at acquisition cost. Any surplus between the cost of investment and the percentage belonging to the Prosegur Cash Group of the fair values of identifiable net assets is posted as goodwill, which is included in the carrying amount of the investment.

The share of the Prosegur Cash Group in the profit or loss of the associate entities obtained since the date of acquisition is recognised as an increase or decrease in the value of the investments, with a debit or credit made to the item Interest in the P&L of the associates for the year, accounted for under the equity method in the consolidated income statement (consolidated statement of comprehensive income). In addition, the share of the Prosegur Cash Group in the other comprehensive income of the associates obtained since the acquisition date is posted as an increase or decrease of the value of investments in the associates, recognising the difference in Other comprehensive income. Dividend distributions are recognised as reductions in the value of the investments.

Impairment

The Prosegur Cash Group applies the impairment criteria in order to determine whether or not to record impairment losses additional to those already recognised in the net investment of the associate or in any other financial asset held therewith as a result of the application of the equity method.

Calculation of impairment is determined as the result of the comparison between the carrying amount associated with the net investment in the associate with its recoverable value, the latter being understood as the greater value between the value in use or fair value less costs of sale or disposal via any other channel. In this regard, value in use is calculated on the basis of the share of the Prosegur Cash Group in the current value of estimated cash flows from ordinary activities and amounts which might result from the final sale of the associate.

The recoverable amount of the investment of an associate is valued according to each associate, unless it is not a cash-generating unit (CGU) (Note 32.9).

Impairment losses are not allocated to goodwill or other assets implicit in the investment in associates arising from the application of the acquisition method. In subsequent years, value reversals of investments are recognised in profit/(loss), insofar as there is an increase in recoverable value. Value impairment losses are presented separately from the Prosegur Cash Group share in the results of the associates.

Joint arrangements

Joint arrangements are those in which there is a contractual agreement to share the control over an economic activity, in such a way that decisions relating to the relevant activities require the unanimous consent of the Prosegur Cash Group and the remaining venturers or operators. The assessment of the existence of joint control is carried out according to the definition of control of subsidiaries.

Joint Ventures

Investments in joint ventures are accounted for applying the equity method. This method consists of including under the consolidated balance sheet heading 'Investments accounted for using the equity method' the value of net assets and goodwill, if applicable, corresponding to the holding in the joint venture. Net profit/(loss) obtained each year corresponding to the percentage interest in joint ventures is shown in the consolidated income statement as 'Share in profit/(loss) of equity-accounted investees'. The Prosegur Cash Group has decided to present said profit/(loss) as part of its operating profit/(loss) as it considers that the profit/(loss) of its joint ventures forms part of its operations.

Dividend distributions from joint ventures are recognised as reductions in the value of the investments. The losses of joint ventures which pertain to the Prosegur Cash Group are limited to the value of the net investments, except for those cases in which the Prosegur Cash Group has assumed legal or constructive obligations, or else has made payments in the name of the joint ventures.

Joint Operations

In regard to joint operations, in its Consolidated Annual Accounts the Prosegur Cash Group recognises its assets, including its interest in jointly controlled assets; its liabilities, included its interest in liabilities assumed jointly with other operators; the income obtained from the sale of its share of production arising from the joint operation, and its expenses, including the part of joint expenses pertaining to it.

In sales transactions or contributions by the Prosegur Cash Group to joint operations, only the results pertaining to the share of the rest of operators are recognised, unless the losses should highlight a loss or impairment of assets transferred, in which case these will be recognised in full.

In transactions where the Prosegur Cash Group purchases from joint operations, profits or losses are only recognised when assets acquired are sold to third parties, unless the losses should highlight a loss of value or impairment of the acquired assets, in which case the Prosegur Cash Group shall recognise the proportional share of the losses pertaining to it in full.

The acquisition by the Prosegur Cash Group of the initial and subsequent interest in a joint operation is recognised applying the criteria used for business combinations, by the percentage share held in the individual assets and liabilities. However, in the subsequent acquisition of an additional share of a joint operation, the previous share in individual assets and liabilities is not subject to revaluation.

32.3. Consolidated income statement based on function

The Prosegur Cash Group opts to present the expenses recognised in the income statement using a classification based on the function of the expenses within the entity as it considers that this method provides users with more relevant information than the classification of expenses based on their nature.

32.4. Segment reporting

A business segment is a group of assets and operations that is engaged in providing products or services and which is subject to risks and rewards that are different from those of other segments.

A geographical segment is engaged in providing products or services within a particular economic environment and is subject to risks and rewards that are different from those of segments operating in other economic environments.

Costs are directly allocated to each of the defined segments. Each geographical area has its own functional structure.

32.5. Foreign currency transactions

Functional and presentation currency

The items of the Consolidated Annual Accounts of each Prosegur Cash Group entity are presented in the currency of the main economic environment in which it operates ('functional currency'). The figures disclosed in the Consolidated Annual Accounts are expressed in thousands of Euros (unless stated otherwise), the Parent's functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the transaction date. Foreign currency profit and loss arising on the settlement of these transactions and on the translation of monetary assets and liabilities denominated in foreign currencies at the closing exchange rate are recognised in the income statement, unless they are recognised directly in equity as cash flow hedges.

Foreign exchange profit and loss relating to loans and cash and cash equivalents are recognised in the income statement under financial income or expenses.

Changes in the fair value of monetary assets denominated in foreign currencies and classified as non-current assets held for sale are analysed to distinguish between translation differences resulting from changes in the amortised cost of the securities and other changes in the carrying amount of the securities. Translation differences are recognised in profit or loss, and other changes in the carrying amount are recognised in equity.

Translation differences on non-monetary items, such as equity instruments at fair value through profit or loss, are recognised as changes in fair value. Translation differences on non-monetary items, such as equity instruments classified as available-for-sale financial assets, are recognised in the revaluation reserve in equity.

The Prosegur Cash Group includes in profit/(loss) the differences on translation of deferred tax assets and liabilities denominated in foreign currencies and the deferred income taxes.

In the consolidated statement of cash flows, cash flows from foreign currency transactions have been translated into Euros at the exchange rates prevailing at the date the cash flows occurred. The effect of exchange rate fluctuations on cash and cash equivalents denominated in foreign currencies is recognised separately in the statement of cash flows as 'Effect of exchange differences on cash'.

Translation of foreign operations

Foreign operations whose functional currency is not the currency of a hyperinflationary economy have been translated into euros as follows:

• i. Assets and liabilities, including goodwill and net asset adjustments derived from the acquisition of the operations, including comparative amounts, are translated at the closing exchange rate at the reporting date;
• ii. Income and expenses of each income statement are translated at the average monthly exchange rate;
• iii. All resulting exchange differences are recognised as translation differences in other consolidated comprehensive income.

On consolidation, exchange differences arising on the translation of a net investment in foreign entities, and of loans and other instruments in foreign currency designated as hedges of these investments, are recognised in the shareholders' equity. When these investments are sold, the exchange differences are recognised in the income statement as part of the profit or loss on the sale.

32.6. Property, Plant and Equipment

Land and buildings mainly comprise operating regional offices. Property, plant and equipment are recognised at cost less depreciation and any accumulated impairment losses, except in the case of land, which is presented at cost net of any impairment losses.

Historical cost includes all expenses directly attributable to the acquisition of the items.

Subsequent costs are included in the carrying amount of the asset or recognised as a separate asset, provided that it is probable that the future economic benefits associated with the items will flow to the Prosegur Cash Group and the cost of the item can be reliably measured. The carrying amount of the replaced item is derecognised. Other repairs and maintenance costs are taken to the income statement when incurred.

Land is not depreciated. Other assets are depreciated on a straight-line basis to allocate the cost or revalued amount to residual value over the following estimated useful lives:

	Ratio (%)
Constructions	2 and 3
Technical installations and machinery	10 to 25
Other installations and tools	10 to 30
Furniture	10
Computer equipment	25
Transport elements	10-16
Other property, plant and equipment	10 to 25

Prosegur reviews the residual values and useful lives of assets and adjusts them, if necessary, as a change in accounting estimates at the end of each reporting period.

When the carrying amount of an asset exceeds its estimated recoverable amount, it is immediately written down to the latter (Note 32.9). The Company tests property, plant and equipment for impairment on an annual basis, regardless of whether or not there are signs of impairment.

Profit and loss on the sale of property, plant and equipment are calculated as the difference between the consideration received and the carrying amount of the asset and are recognised in the income statement.

32.7. Right of use assets and Lease liabilities (policy applicable as from 1 January 2019)

On 1 January 2019, the Group adopted IFRS 16, on Leases. The Prosegur Cash Group opted to use the modified retrospective approach on transition which involves applying the standard retroactively with the cumulative effect from the date of first-time application.

At the start of a contract, Prosegur Cash assesses whether it contains a lease. A contract is or contains a lease if it grants the right to control the use of the asset identified for a period of time in exchange for a consideration. The length of time during which the Prosegur Cash Group uses an asset includes consecutive and non-consecutive periods of time. Prosegur Cash only reassesses the conditions when a contract is amended.

In contracts containing one or more components which are lease-related and non-lease-related, Prosegur Cash assigns the consideration set in the contract for each lease component according to the sales price of each individual lease-related component, and the aggregate individual price of the non-lease-related components.

The Prosegur Cash Group has also chosen to not recognise in the balance sheet the lease liabilities and the right of use asset corresponding to short-term lease contracts (leases for one year or less) and leases for low value assets (USD 5 thousand or less). In contracts of this kind, the Prosegur Cash Group recognises payments on a straight-line basis during the term of the lease.

Lessee accounting

At the commencement of the lease term, Prosegur Cash recognises a right of use asset and lease liability. The right of use asset is composed of the amount of the lease liability, any payment for the lease made on or prior to the starting date, less any incentives received, the initial direct costs incurred and an estimate of the costs for decommissioning or restoration to be incurred, as indicated in the accounting policy provisions.

The Prosegur Cash Group measures the lease liability as the current value of the lease payments which are outstanding at the commencement date. The Prosegur Group discounts lease payments at the appropriate incremental interest rate, unless the implicit interest rate of the lessor may be determined reliably.

The pending lease payments are comprised of fixed payments, less any incentive to be collected, the variable payments that depend on an index or rate, initially appraised by the index or rate applicable on the starting date, the amounts expected to be paid for residual value guarantees, the price of exercising the purchase option whose exercise is reasonably certain and any compensation payments for contract termination, providing the term of the lease reflects the termination option.

The Prosegur Cash Group measures right of use assets at cost, less accumulated depreciation and impairment losses, adjusted by any reassessment of the lease liability.

If the contract transfers ownership of the asset to the Prosegur Cash Group at the end of the lease term or if the right of use asset includes the price of the purchase option, the depreciation criteria indicated in Note 32.6 are applied from the lease commencement date until the end of the useful life of the asset. Otherwise, Prosegur Cash depreciates the right of use asset from the commencement date until the date of the useful life of the right or the end of the lease term, whichever is the earlier.

The Prosegur Cash Group applies the criteria for impairment of non-current assets set out in Note 32.9 to right of use assets.

The Prosegur Cash Group measures the lease liability increasing it by the financial expenses accrued, decreasing it by the payments made and reassessing the carrying amount due to any amendments to the lease or to reflect any reviews of the in-substance fixed lease payments.

The Prosegur Cash Group records any variable payments that were not included in the initial valuation of the liability in the profit/(loss) for the period in which the events resulting in payment were produced.

The Prosegur Cash Group records any reassessments of the liability as an adjustment to the right of use asset, until it is reduced to zero, and subsequently in profit/(loss).

The Prosegur Cash Group reassesses the lease liability discounting the lease payments at an updated rate, if any change is made to the lease term or any change in the expectation of the purchase option is being exercised on the underlying asset.

The Prosegur Cash Group reassesses the lease liability if there is any change in the amounts expected to be paid for a residual value guarantee or any change in the index or rate used for determining payments, including any change for reflecting changes in market rents once these have been reviewed.

The Prosegur Cash Group recognises an amendment to the lease as a separate lease if it increases the scope of the lease by adding one or more rights of use and the amount of consideration for the lease increases by an amount consistent with the individual price for the increased scope and any adjustment to the individual price to reflect the specific circumstances of the contract.

If the amendment does not result in a separate lease, on the amendment date the Prosegur Cash Group assigns the consideration to the amended contract as indicated above, it re-determines the term of the lease and reassesses the value of the liability discounting the revised payments at the revised interest rate. The Prosegur Cash Group writes down the carrying amount of the right of use asset to reflect the partial or total end of the lease in any amendments that reduce the scope of the lease and it records the profit or loss as profit/(loss). For all other amendments, the Prosegur Cash Group adjusts the carrying amount of the right of use asset.

Lessor accounting

The Prosegur Cash Group will classify each lease either as an operating lease or as a finance lease.

A lease will be classified as a finance lease if it substantially transfers all risks and benefits inherent to the ownership of an underlying asset. A lease will be classified as an operational lease if it does not substantially transfer all risks and benefits inherent to the ownership of an underlying asset.

Finance leases

On the starting date, the Prosegur Cash Group recognises in its statement of financial position any assets it holds under finance leases, and it presents them as an item receivable for an amount equivalent to the net investment in the lease. The implicit interest rate is used in the lease to measure the net investment in the lease. The initial direct costs other than those withstood by the lessors that are manufacturers or distributors, are included in the initial appraisal of the net investment in the lease, and reduce the amount of income recognised during the lease term.

The lease payments included in the appraisal of the net investment in the lease include the following payments for the right of use of the underlying asset during the lease term that have not been received on that date: fixed payments, less any incentive to be paid, variable payments that depend on an index or rate, initially appraised by the index or rate applicable on the starting date, any residual value guarantees furnished by the lessor to the lessee, the price of exercising the purchase option whose exercise is reasonably certain and any compensation payments for contract termination, providing the term of the lease reflects the termination option.

The Prosegur Cash Group recognises the financial income during the term of the lease, based on a pattern reflecting a constant periodic rate of return on the Prosegur Cash Group's net investment in the lease.

The Prosegur Cash Group distributes the financial income on a systematic, rational basis throughout the term of the lease and deducts the lease payments for the year from the gross investment in the lease, to reduce both the principal and the unearned financial income.

Operating leases

The Prosegur Cash Group recognises lease payments arising from operating leases as income, either on a straight-line basis, or using another systematic basis. The Prosegur Cash Group applies another systematic basis if it is more representative of the pattern in which benefit from the use of the underlying asset is diminished.

The Prosegur Cash Group recognises the costs incurred for obtaining lease income as an expense, including depreciation.

The Prosegur Cash Group adds the initial direct costs incurred in obtaining an operating lease to the carrying amount of the underlying asset and recognises those costs as an expense over the lease term on the same basis as the lease income.

The Prosegur Cash Group books the amendment of an operating lease as a new lease from the effective date of the amendment, and considers that any lease payments already made or due in relation to the original lease form part of the payments under the new lease.

32.8. Intangible assets

Goodwill

Goodwill is the amount by which the cost of acquisition exceeds the fair value of the Prosegur Cash Group's share of the acquired subsidiary's identifiable net assets at the acquisition date. Goodwill impairment is verified every year (Note 32.9) posted at cost less accumulated impairment losses. Profit and loss on the sale of an entity include the carrying amount of the goodwill allocated to the sold entity.

For impairment testing purposes, goodwill is allocated to cash-generating units (CGU). Goodwill is allocated to those CGU that are expected to benefit from the business combination from which the goodwill arose.

Client portfolios

The relationships with clients that the Prosegur Cash Group recognises under client portfolios are separable and based on a contractual relationship, thus meeting the requirements set out in prevailing legislation for consideration as intangible assets separate from goodwill. In general, these are client service contracts that have been acquired from third parties or recognised in the allocation of fair values in business combinations.

Portfolios of contracts with clients are recognised at fair value on the acquisition date less amortisation and accumulated impairment losses.

The fair value allocated to client contract portfolios acquired from third parties is the purchase price. To determine the fair value of intangible assets allocated in business combinations in the form of client relationships, Prosegur uses the income approach, discounting the cash flows generated by these relationships at the date of acquisition of the subsidiary. Cash flows are estimated based on the sales, operating investments and EBITDA margins projected in the Company's business plans.

The Prosegur Cash Group amortises client portfolios on a straight-line basis over their estimated useful lives. The useful life is estimated based on indicators such as average length of relationship with clients or the average annual client churn rate. The useful lives allocated to these intangible assets are reviewed at the end of each reporting period. Client portfolios have useful lives of between 2 and 22 years.

Client portfolios are allocated to cash-generating units (CGU) in accordance with their respective business segment and the country of operation.

Moreover, at the end of each reporting period, Prosegur assesses whether the recoverable amount is affected by any impairment loss. The tests to determine whether there are indications of impairment of client portfolios mainly consist of:

• Verifying whether events have taken place that could have a negative impact on the estimated cash flows from the contracts making up the portfolio (such as a decline in total sales or EBITDA margins).
• Updating the estimated client churn rates to identify any changes to the periods for which client portfolios are expected to generate revenues.

If there are indications of impairment, the recoverable amount of a client portfolio is based on the current value of the reassessed cash flows from the contracts over their useful lives.

If client churn rates have risen, Prosegur reassesses the useful lives of client portfolios.

Trademarks and licences

Trademarks and licences are presented at historical cost. They have defined useful lives and are recognised at cost less amortisation and accumulated impairment losses. Trademarks and licences are amortised on a straight-line basis to allocate the cost over their estimated useful lives (4 years).

Computer software

Computer software licences acquired are capitalised at cost of acquisition or cost of preparation of the specific software for its use. These expenses are amortised over the estimated useful lives of the assets (3 to 5 years).

Computer software maintenance costs are charged as expenses when incurred.

32.9.Impairment losses

If an event or change in circumstances indicates that the carrying amount of assets subject to amortisation or depreciation may not be recoverable, Prosegur determines whether impairment losses have been incurred. The difference between the carrying amount of the asset and its recoverable amount is recognised as an impairment loss. The recoverable amount is the greater between the fair value of an asset less the costs to sell or other type of disposal, or the value in use. For impairment testing purposes, assets are grouped at the lowest level for which separate identifiable cash flows can be identified (cash-generating units, CGU). Impaired non-financial assets other than goodwill are reviewed at the end of each reporting period to assess whether the loss has been reversed.

Impairment losses on goodwill

Goodwill has been allocated to the Prosegur Cash Group's cash-generating units (CGU) in accordance with their respective country of operation. Goodwill is allocated to CGU for impairment testing purposes. Goodwill is allocated to those CGU that are expected to benefit from the business combination from which the goodwill arose.

The recoverable amount is the higher between its fair value less costs to sell or otherwise dispose and its value in use, which is understood to be the present value of estimated future cash flows. To estimate the value in use the Prosegur Cash Group prepares forecasts of future cash flows before tax based on the most recent budgets approved by Management. These budgets incorporate the best available estimates of income and expenses of the cash-generating units (CGU) using past experience and future expectations. These budgets have been prepared for the next five years, and future cash flows have been calculated by applying non-increasing estimated growth rates that do not exceed the average long-term growth rate for the business in which the CGU operates.

Management determined EBITDA (earnings before interest, tax, depreciation and amortisation) based on past returns and the foreseeable development of the market.

To calculate present value, cash flows are discounted at a rate that reflects the cost of capital of the business and the geographical region in which it operates. This calculation takes into account the current value of money and the risk premiums of each country used generally among analysts for the geographical area.

If the recoverable amount is less than the carrying amount of the asset, the difference is recognised under impairment losses in the consolidated income statement (Note 13).

Impairment losses on goodwill are not reversible.

As well as testing for impairment, a sensitivity analysis on goodwill is performed, which consists of verifying the impact of deviations in key assumptions on the recoverable amount of a CGU (Note 13).

32.10. Financial assets

Classification

Financial assets are classified on initial recognition in accordance with the economic substance of the contractual arrangement and the definition of a financial asset.

For the purposes of their valuation, financial assets are classified in categories of financial assets at fair value through profit or loss, separating those initially designated from those held for trading, financial assets measured at amortised cost and financial assets measured at fair value with changes in other comprehensive income, separating equity instruments designated as such from the rest of the financial assets. Prosegur Cash classifies financial assets, other than those designated at fair value through profit or loss and equity instruments designated at fair value with changes in other comprehensive income, in accordance with the business model and the characteristics of the financial asset's contractual cash flows.

Prosegur Cash classifies a financial asset at amortised cost, if it is held in the framework of a business model whose purpose is to hold financial assets for obtaining contractual cash flows and the contractual terms of the financial asset lead, on specific dates, to cash flows which are solely payments of principal and interest on the outstanding principal amount (SPPI).

Prosegur Cash classifies a financial asset at fair value with changes in other comprehensive income, if it is held in the framework of a business model whose purpose is achieved by obtaining contractual cash flows and selling financial assets and the contractual terms of the financial asset lead, on specific dates, to cash flows that are SPPI.

The business model is determined by key staff of Prosegur Cash and at a level that reflects the way in which groups of financial assets are managed jointly for achieving a specific business target. The business model of the Prosegur Cash Group represents the way in which it manages its financial assets for generating cash flows.

Financial assets that are held within a business model whose objective is to hold assets to collect contractual cash flows are managed for generating cash flows in the form of contractual receivables during the life of the instrument. The Prosegur Cash Group manages the assets held in the portfolio for collecting those specific contractual cash flows. To determine whether the cash flows are obtained by collecting contractual cash flows from the financial assets, the Prosegur Cash Group considers the frequency, the value and the timing of the sales in previous years, the reasons for those sales and the expectations in relation to the future sales activity.

Financial assets that are held within a business model whose objective is to hold assets in order to collect contractual cash flows and sell them are managed for generating cash flows in the form of contract receivables and selling them depending on the different requirements of Prosegur Cash.

Other financial assets are classified at fair value through profit or loss.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when Prosegur Cash provides money, goods or services directly to a debtor without the intention of trading the receivable. They are classified as current assets unless they mature in more than 12 months after the reporting date, in which case they are classified as non-current. Loans and receivables are generally recognised under Clients and other receivables in the statement of financial position (Note 32.12).

Other non-current financial assets

In this category Prosegur Cash includes fixed-term deposits, loans and third-party collection rights.

Recognition, valuation and derecognition of financial assets

Acquisitions and disposals of financial assets are recognised on the trade date, i.e. the date on which Prosegur Cash commits to acquire or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not recognised at fair value through profit or loss. Investments are derecognised when they expire or the contractual rights to the cash flows from the investment have been transferred and Prosegur Cash has substantially transferred all the risks and rewards of ownership.

Loans and receivables and other financial assets are subsequently accounted at amortised cost using the effective interest method.

Unrealised profit and loss arising from changes in the fair value of non-monetary securities classified as available for sale are recognised in equity. When securities classified as available for sale are sold or incur irreversible impairment losses, the accumulated adjustments in fair value are included in the income statement as profit and loss on the securities.

If there is objective evidence, Prosegur Cash tests financial assets or groups of financial assets for impairment at the end of each reporting period. In the case of equity securities classified as available for sale, to determine whether they are impaired the Company considers whether a significant or prolonged decline has reduced the fair value of the securities to below cost.

If such evidence exists for financial assets available for sale, the cumulative loss, calculated as the difference between the acquisition cost and the current fair value less any impairment loss previously recognised, is reclassified from equity to the income statement. Impairment losses recognised for equity instruments through the income statement cannot be reversed.

Prosegur Cash derecognises financial assets when they expire or the rights over the cash flows of the corresponding financial asset have been assigned, and the risks and benefits inherent to their ownership have been substantially transferred, such as in assignments of trade receivables in factoring operations in which the Company has no credit risk or interest rate risk.

Conversely, Prosegur Cash does not derecognise financial assets, and recognises financial liabilities in an amount equal to the consideration received, in assignments of financial assets in which the risks and benefits inherent to their ownership are substantially retained, such as discounted cash or factoring with recourse, in which the assigning company retains subordinated financing or other types of guarantees that substantially absorb all the expected losses.

32.11. Inventories

Inventories are measured at the lower of cost and net realisable value, with the following exceptions:

• Inventories held in warehouses and uniforms are measured at weighted average cost.
• Work in progress is measured at the cost of the installation, which includes materials and spare parts used and the standard cost of the corresponding labour, which does not differ from the actual costs incurred during the year.

The net realisable value is the estimated selling price in the normal course of business less any variable costs to sell.

32.12. Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less impairment. An impairment of trade receivables is established when there is objective evidence that Prosegur Cash will not be able to collect all amounts due as per the original terms of the receivables, and a credit risk impairment based on the expected loss, which is calculated on the basis of the average percentage of the bad debts of each client over recent years, applied to sales due but for which no provision has yet been made.

Financial difficulties affecting the debtor, the likelihood that the debtor will enter insolvency proceedings or a financial restructuring process, or a default or delay in payments are considered to indicate that a receivable is impaired. The amount of the impairment loss is the difference between the carrying amount of the asset and the current value of the estimated future cash flows, discounted at the effective interest rate. The carrying amount of the asset is reduced as the allowance account is used and the loss is taken to the income statement. When a receivable is a bad debt, it is written off against the allowance account for receivables.

32.13. Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits in credit institutions, other shortterm, highly liquid investments with a maturity of three months or less and bank overdrafts. Bank overdrafts are recognised in the statement of financial position as current financial liabilities.

32.14. Share capital and own shares

Ordinary shares are classified as equity.

The acquisition by the Prosegur Cash Group of equity instruments of the Parent Company is presented at acquisition cost separately as a reduction in net equity in the consolidated statement of financial position, regardless of the reason for the acquisition. No profit/(loss) was recognised in transactions with own equity instruments.

The subsequent amortisation of the Parent's equity instruments leads to a capital reduction in the nominal amount of said shares and the positive or negative difference between the purchase price and the nominal share price is charged or credited to reserves.

The transaction costs relating to own equity instruments are recognised as a reduction in net equity once any tax effect has been taken into account.

32.15. Provisions

Provisions for restructuring and litigation are recognised when:

• The Prosegur Cash Group has a present obligation (legal or constructive) as a result of past events.
• It is more probable than an outflow of resources will be required to settle the obligation.
• A reliable estimate has been made of the amount of the obligation.

Where there is a number of similar obligations, the probability that an outflow will be required for the settlement is determined by considering the class of obligations as a whole. A provision is recognised even if an outflow of resources in connection with any item included in the same class of obligations is unlikely.

Restructuring provisions include lease cancellation penalties and employee termination benefits. No provision is recognised for future operating losses.

Management estimates the provisions for future claims based on historical claims, as well as any recent trends indicating that past information on costs could differ from future claims. Additionally, Management is assisted by external labour, legal and tax advisors to make the best estimates (Note 21).

Provisions are measured at the current value of the estimated expenditure required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. Increases in the provision due to the passage of time are recognised as an interest expense.

32.16. Financial liabilities

Financial liabilities are classified on initial recognition in accordance with the economic substance of the contractual arrangement and the definition of a financial liability in IAS 32 Financial Instruments: Presentation.

Financial liabilities are initially recognised at fair value less any transaction costs and are subsequently measured at amortised cost. Any difference between the funds obtained (net of arrangement costs) and the repayment amount is recognised in the income statement over the term of the liability using the effective interest rate method.

Liabilities are classified as current unless the Prosegur Cash Group has an unconditional right to defer settlement for at least twelve months after the reporting date.

Fees and commissions paid for credit facilities are recognised as loan transaction costs provided that it is probable that one or all of them will be drawn down. In this case, the fees and commissions are deferred until funds are drawn. If there is no evidence that the credit facility is likely to be drawn down, the fees and commissions are capitalised as a prepayment for liquidity services and amortised over the term of the credit facility.

32.17. Current and deferred taxes

Tax expense for the year comprises current tax and deferred tax. Tax is recognised in the income statement unless it is paid on items recognised directly in equity, in which case the tax is also recognised in equity.

The current tax expense is calculated in accordance with tax laws that have been enacted or substantially enacted at the reporting date in the countries in which the subsidiaries and associates operate and generate taxable income. Management regularly assesses the judgements made in tax returns where situations are subject to different interpretation under tax laws, recognising, if necessary, the corresponding provisions based on the expected tax liability.

A significant degree of judgement is required to determine the provision for income tax payable globally. In many transactions and calculations during the ordinary course of business, the final tax amount is uncertain. The Prosegur Cash Group recognises tax contingencies that it expects to arise based on estimates when it considers that additional taxes will be payable. If the tax finally paid in these cases differs from the amounts initially recognised, these differences affect income tax and the provision for deferred taxes for the year in which they were calculated.

Deferred tax is calculated using the balance sheet method, based on temporary differences that arise between the tax base of assets and liabilities and their carrying amounts in the Consolidated Annual Accounts. However, if deferred tax assets or liabilities arise from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affect neither accounting profit nor taxable income, they are not recognised.

Deferred tax assets or liabilities are measured using the tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date and are expected to be applicable when the corresponding deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets are recognised provided that it is likely that sufficient taxable income will be generated against which the temporary differences can be offset.

Deferred tax is recognised in respect of the temporary differences that arise from investments in subsidiaries and associates, except where the Prosegur Cash Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.

Prosegur Cash only offsets deferred income tax assets and liabilities against current revenue if there is a legal right in respect of the tax authorities and it intends to settle the resulting debts in their net amount or realise the assets and settle the debts simultaneously.

The Prosegur Cash Group only offsets deferred income tax assets and liabilities if there is a legal right to offsetting in respect of the tax authorities and said assets and liabilities correspond to the same tax authority, and to the same taxable entity or different taxable entities that intend to settle or realise current tax assets and liabilities in their net amount or realise the assets and settle the liabilities simultaneously, in each of the future years in which they expect to settle or recover significant amounts of deferred tax assets or liabilities.

Deferred tax assets and liabilities are recognised in the consolidated statement of financial position as non-current assets or liabilities, irrespective of the expected date of realisation or settlement.

32.18. Employee benefits

Compensations based on the quoted share price of Prosegur Cash shares – 2018-2020 and 2021-2023 Plans.

The 2018-2020 Plan and 2021-2023 Plan are generally linked to value creation and envisage the payment of share-based and/or cash incentives to the Executive President, the Managing Director and the Senior Management of the Company.

The fair value of the incentives referred to the share quotation price was estimated on the basis of Prosegur's share quotation price at the close of the period or at the payment time.

Quantification of the total incentive will depend on the degree of achievement of the targets established in line with the strategic plan.

Compensations based on Prosegur Cash shares for the Retention Plan

The Retention Plan is linked to the creation of value through digital transformation and envisages the payment of share incentives to the Executive President, Managing Director and Senior Management of the Company.

The fair value of the incentives indexed to the listed share price at the time of concession has been calculated on the basis of the average listed price during the 15 stock market session previous to the date of the session held on 29 October 2020, the amount being EUR 0.695 per share. Cash Group recognises a straight-line expense in the income statement during the length of service of the Plan, as well as the corresponding increase in equity, based on the fair value of the shares committed when the Plan was granted.

Quantification of the total incentive will depend on the degree of achievement of the targets established.

Termination benefits

Termination benefits are recognised on the earlier date between the one on which Prosegur Cash may no longer withdraw the offer and when restructuring costs entailing the payment of termination benefits are recognised.

In termination benefits resulting from the decision of employees to accept an offer, it is deemed that Prosegur Cash may no longer withdraw the offer on the earlier date between the one on which the employees accept the offer and when a restriction on the ability of Prosegur Cash Group to withdraw the offer takes effect.

In the case of benefits for involuntary termination, it is considered that Prosegur Cash can no longer withdraw the offer when the plan has been notified to the affected employees and union representatives, and the actions necessary to complete it indicate that the occurrence of significant changes to the plan are unlikely, the number of employees to be terminated, their employment category or duties and place of employment and the anticipated termination date are identified, and it establishes the termination benefits that the employees are going to receive in sufficient detail so that the employees are able to determine the type and amount of remuneration they will receive when terminated.

If Prosegur Cash expects to settle the benefits in their entirety within twelve months of the reporting period, the liability is discounted using the market performance yield corresponding to the issue of high-quality corporate bonds and debentures.

Short-term employee remuneration

Short-term employee remuneration is remuneration to employees, other than termination benefits, whose payment is expected to be settled in its entirety within 12 months of the end of the reporting period in which the employees have rendered the services for the remuneration.

Short-term employee remuneration is reclassified as long-term if the characteristics of the remuneration are modified or if a non-provisional change occurs in settlement expectations.

Prosegur Cash recognises the anticipated cost of short-term remuneration as paid leave whose rights accumulate as the employees render the services granting them the right to collection. If the leaves are not cumulative, the expense is recognised as the leaves take place.

Profit-sharing plans and bonuses

Prosegur Cash calculates the liability and expense for bonuses and profit-sharing using a formula based on EBITDA (earnings before interest, tax, depreciation and amortisation).

Prosegur Cash recognises this cost when a present, legal or constructive obligation exists as a result of past events and a reliable estimate may be made of the value of the obligation.

Management remuneration

As well as profit-sharing plans, Prosegur has incentive plans for Senior Management linked to the achievement of certain targets set by the corresponding remuneration committees. At the end of the reporting period, provision has been made for these plans based on Prosegur Cash Management's best possible estimate of the extent to which targets will be met.

Defined benefit schemes

Prosegur Cash includes in defined benefit schemes those financed through the payment of insurance premiums where there is the legal or constructive obligation to directly pay employees the benefits committed as soon as they are payable or to pay additional amounts if the insurer does not disburse the benefits corresponding to services provided by employees in the year or in previous years.

Liabilities for defined benefits recognised in the consolidated statement of financial position correspond to the current value of the defined benefit obligations existing at the reporting date, less the fair value at said date of the assets under the scheme.

The current value of employee benefits depends on a number of factors determined using various assumptions on an actuarial basis. The assumptions employed to calculate the net expense (income) include the discount rate. Any change in these assumptions will affect the carrying amount of employee benefits.

In those cases in which the result obtained from the undertaking of the aforementioned operations is negative, in other words an asset arises, Prosegur Cash recognises this up to the limit of the amount of the current value of any economic benefit available in the form of reimbursements from the scheme or reductions in future contributions thereto. The economic benefit is available for Prosegur Cash if it is realisable at any moment during the life of the plan or in the settlement of plan liabilities, even if not immediately realisable at the reporting date.

Income or expense related to defined benefit schemes is recognised as other employee benefits expenses and is the sum of the net current service cost and the net interest cost of the net liabilities or assets for defined benefits. The recalculation of the valuation of net liabilities or assets for defined benefits is recognised in other comprehensive income. The latter includes actuarial profits and losses, the net return on scheme assets and any change in the effects of the asset limit, excluding any quantities included in the net interest on liabilities or assets. The costs of administering plan assets and all types of taxes characteristic of these, other than those included in the actuarial assumptions, are deducted from the net return of the scheme assets. Amounts deferred in other comprehensive income are reclassified to retained earnings in the same reporting period.

Prosegur Cash likewise recognises the cost of past services as an expense of the reporting period on the earlier date between the one on which the modification or reduction of the plans takes place and when the corresponding restructuring or termination benefits are recognised.

The current value of defined benefit obligations is calculated annually by independent actuaries using the projected credit unit method. The discount interest rate of the net asset or liability for defined benefits is calculated based on the yield on high-quality corporate bonds of a currency and term consistent with the currency and term of the post-employment benefit obligations.

Discretionary contributions of employees or third parties to defined benefit schemes reduce the service cost for the reporting period in which they are received. Contributions of employees or third parties established in the terms of the plan reduce the service cost of the service periods if they are associated with the service or reduce recalculations. Changes in contributions associated with the service are recognised as a cost for a current or past service, if they are not established in the formal terms of the scheme and do not derive from a constructive obligation or as actuarial losses and gains, if they are established in the formal terms of the scheme or derive from a constructive obligation.

Prosegur Cash does not offset assets and liabilities among different schemes except in cases in which a legal right exists to offset surpluses and deficits generated by the various schemes and seeks to cancel obligations by their net amounts or realise the surplus in order to simultaneously cancel obligations in schemes with deficits.

Assets or liabilities for defined benefits are recognised as current or non-current depending on the term of realisation or maturity of the relevant benefits.

32.19. Revenue recognition

Recognition of revenue from contracts with customers (IFRS 15)

On 1 January 2019, Prosegur Cash adopted IFRS 15, concerning the recognition of revenue from contracts with customers. Prosegur Cash opted for the transition option provided in the Standard, which involves applying IFRS 15 retroactively recognising the cumulative effect as an adjustment at the date of initial application, without restating the information presented in 2017 under the aforementioned standards.

Pursuant to IFRS 15, revenue is recognised in an amount reflecting the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a client, when the client obtains the control of the goods or services provided. Determining the time at which said control is transferred (at a specific time or over a period of time) requires the exercise of judgement by the Group. This Standard replaced the following standards: (a) IAS 11 Construction Contracts; (b) IAS 18 Revenue, and the related interpretations (IFRIC 13 Customer Loyalty Programmes; IFRIC 15 Agreements for the Construction of Real Estate; IFRIC 18 Transfers of Assets from Customers; and SIC-31 Revenue – Barter Transactions Involving Advertising Services).

Moreover, with the application of IFRS 15 incremental costs of obtaining a contract must be recognised as an asset (success fees, mainly, and other expenses paid to third parties) and are recognised in the income statement to the extent that the revenue related to that asset is allocated.

IFRS 15 establishes a new five-step model applied to the accounting for revenue from contracts with clients:

• Step 1: Identify the contract(s) with the client
• Step 2: Identify the performance obligations in the contract
• Step 3: Determine the transaction price
• Step 4: Allocate the transaction price to the performance obligations in the contract
• Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.

Revenue recognition by business

Cash services

Most of Prosegur Cash revenue comes from cash-in-transit and cash management services. The IFRS 15 standard requires the use of a uniform method for recognising revenue for contracts and performance obligations with similar characteristics. The method chosen by Prosegur Cash to measure the value of the services, the control of which is transferred to the client over time, is the product method, provided that through the contract and during its execution it is possible to measure the progress in the work carried out. Product methods recognise revenue on the basis of direct measurements of the value for the client of the goods or services transferred so far in relation to the pending goods or services pledged in the contract.

Revenue from services is recognised during the period in which they are rendered. In fixed price contracts, revenue is recognised to the extent that current services are rendered at the end of the period as a proportion of the total services rendered.

If the services provided by Prosegur Cash exceed the unconditional right to payment, a contractual asset is recognised. If the payment received by the client exceeds the recognised income, a contractual liability is recognised.

Interest received

Interest received is recognised over the period of the outstanding principal and considering the effective interest rate applicable. When a receivable is impaired, Prosegur Cash writes down the carrying amount to the recoverable amount, discounting estimated future cash flows at the original effective interest rate of the instrument. The discounting continues to be recognised as a reduction in the interest received. Interest on impaired loans is recognised using the effective interest method.

Dividend received

Dividends received are recognised when the right to receive payment is established.

32.20. Borrowing costs

Prosegur Cash recognises borrowing costs directly attributable to the acquisition, construction or production of qualifying assets as an increase in the value of these assets. Qualifying assets are those which require a substantial period of time before they can be used or sold.

32.21. Distribution of dividends

Dividends distributed to the Company's shareholders are recognised as a liability in the Consolidated Annual Accounts of Prosegur Cash in the year in which the dividends are approved by the Shareholders General Meeting. Interim dividends will also result in a liability in Prosegur Cash Consolidated Annual Accounts in the year in which the payment on account is approved by the Board of Directors.

32.22. Discontinued operations

A discontinued operation is a component of the Prosegur Cash business whose operations and cash flows may be clearly distinguished from the rest of the Prosegur Cash Group and which:

• represents a business line or geographical area that is significant and may be considered to be separate from the rest;
• forms part of an individual and coordinated plan to sell or otherwise dispose of the operations of a business line or geographical area that is significant and may be considered to be separate from the rest; or
• is a subsidiary acquired with the sole purpose of being resold.

Classification as a discontinued operation takes place on initial disposal or when the operation meets the criteria to be classified as held for sale.

When an operation is classified as discontinued, the comparative income statement and other comprehensive income is restated as though the operation had been discontinued since the start of the comparative year.

32.23. Environmental issues

The cost of armoured vehicles compliant with the Euro VI standard on non-polluting emissions is recognised as an increase in the carrying amount of the asset. At the end of 2021, the Company has no environment-related contingencies, legal claims or income and expenses relating to the environment.

32.24. Consolidated statement of cash flows

In the consolidated statement of cash flows, prepared using the indirect method, the following expressions are used with the following meanings:

• Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to a low risk of material changes in value.
• Operating activities: the ordinary activities of companies belonging to the consolidated group and other activities that are not classified as investing or financing activities.
• Investing activities: the acquisition and disposal of non-current assets and other investments not included in cash and cash equivalents.
• Financing activities: activities that lead to changes in equity and in financing liabilities. In particular this section includes bank overdrafts.

32.25. Operating leases

When a Prosegur Cash Group entity is the lessee

Leases of property, plant and equipment in which Prosegur Cash Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recognised at the commencement of the lease term at the lower of the fair value of the leased asset and the present value of the minimum lease payments. Each lease payment is broken down into reductions in the payable and the finance costs, so as to produce a constant rate of interest on the remaining balance of the liability. The lease payable, net of the corresponding finance cost, is recognised under financial liabilities. The interest within the finance cost is taken to the income statement over the lease term so as to produce a constant periodic interest rate on the remaining balance of the liability in each period. Property, plant and equipment acquired under finance lease contracts are depreciated over the shorter of the useful life of the asset and the lease term when there is no possibility of Prosegur assuming ownership; otherwise, they are depreciated over the estimated useful life of the asset.

Leases in which the lessor retains a significant part of the risks and rewards of ownership are classified as operating leases. Lease payments under an operating lease (net of any incentive

received) are recognised on the income statement as an expense on a straight-line basis over the lease term.

When a Prosegur Cash Group entity is the lessor

Assets leased to third parties under operating lease contracts are recognised as property, plant and equipment in the statement of financial position. These assets are depreciated over their expected useful lives based on criteria consistent with those applied to similar assets owned by the Prosegur Cash Group. Lease income is recognised on a straight-line basis over the expected useful life of the asset.

32.26. Hyperinflation

Retroactively from 1 January 2018, Prosegur Cash applied IAS 29 for the first time and, as a result, IAS 21.42, due to the Argentine economy being considered as hyperinflationary on 1 July 2018.

The status of hyperinflation is indicated by the characteristics of Argentina's economic environment, which include cumulative inflation over the last three years in excess of 100%. As a result, the financial statements of the Argentine companies of the Prosegur Cash Group have used hyperinflationary accounting for the year 2018, and have not restated the previous financial information.

Hyperinflation accounting was applied to all assets and liabilities of the subsidiary company prior to translation. The historical cost of the non-monetary assets and liabilities and the various equity items of this company was adjusted as of its date of acquisition or inclusion in the consolidated statement of financial position through the end of 2018 to reflect changes in the purchasing power deriving from inflation.

The initial equity shown in the stable currency was affected by the cumulative effect of restatement for inflation of non-monetary items from the date of their first-time recognition and the effect of converting those balances at the closing rate at the beginning of 2018. Prosegur Cash chose to recognise the difference between equity at the end of 2017 and equity at the beginning of 2018 in reserves, along with the cumulative translation differences up to that date, 1 January 2018. Prosegur Cash adjusted the 2021 and 2020 income statements to reflect the financial gain corresponding to the impact of inflation on net monetary assets. The various items on the income statement and the cash flow statement for 2021 and 2020 were adjusted by the inflation rate since they were generated, with a balancing entry in net financial results and net exchange difference, respectively.

The inflation rates used to compile the information were the domestic wholesale price index (IPIM) through 31 December 2016, and the consumer price index (CPI) from 1 January 2017. IPIM affords greater weighting to manufacturing and primary products that are less representative with respect to the totality of activities conducted, while the CPI considers goods and services that are representative of household consumption expenditure.

The adjustment for hyperinflation includes the impacts from the application of IAS 29 and IAS 21.42.

As a result of the IFRIC agenda decision, in 2020 Prosegur Cash amended the previous presentation of translation differences for the Argentina business, regarding them as reserves. In its agenda decision, the IFRIC clarified that the effects of the inflation corrected in IAS 29 in the equity located in the country affected by hyperinflation (excluding the part of the net monetary position that directly affects profit/(loss)) has a currency effect similar to the one that arises when converting the country's financial statements to the presentation currency, whereby both concepts should be reflected in translation differences.

Likewise, the IFRIC clarified that in the first application of IAS 29, the treatment should be the same as that explained above and with retroactive effect and therefore present the effects in accumulated

translation differences, though separating the part of inflation corresponding to the net monetary position, which should be presented in reserves.

In application of all the above, Prosegur Cash proceeded to reclassify the treatments that it had carried out directly against reserves in previous years for an amount of EUR 360,558 thousand between translation differences and reserves in the year 2020 and cumulatively, without modifying the comparative presentation of said periods.

APPENDIX I. – Subsidiaries within the Consolidation Scope

Information at 31 December 2021

			Share
Company name	Registered office	% of Par Value	Company Owning Shareholdings	Basis of consolidation	Activity	Auditor
Prosegur Cash International S.A.U. (Ex-MIV Gestión S.A.U.)	Avda. Gran Vía, 175-177, Pol. Gran Vía Sur, 08908 L'Hospitalet de Llobregat (Barcelona)		100.00 % Prosegur Servicios de Efectivo España, S.L.U.	a	1	B
Prosegur Servicios de Efectivo España, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	1	A
Prosegur Global CIT, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Cash, S.A.	a	3	A
Prosegur Smart Cash Solutions, S.L.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	B
Armor Acquisition, S.A.	Pajaritos, 24 (Madrid)		95.00 % Prosegur Internationale Handels GmbH 5.00 % Prosegur Global CIT, S.L.U.	a	3	A
Juncadella Prosegur Internacional, S.A.	Pajaritos, 24 (Madrid)		68.79 % Armor Acquisition, S.A. 31.21 % Prosegur International Handels GmbH	a	3	A
Prosegur International CIT 1, S.L.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	3	B
Inversiones CIT 2, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	3	B
Prosegur Global CIT ROW, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Cash, S.A.	a	3	A
Prosegur Colombia 1, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	1	B
Prosegur Colombia 2, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	1	B
Prosegur Servicios de Pago EP, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	1	A
Alpha3 Cashlabs, S.L.	Pajaritos, 24 (Madrid)		92.96 % Prosegur Cash, S.A.	a	1	B
Gelt Tech Cashlabs, S.L.U. (Ex-Wohcash APP, S.L.)	Pajaritos, 24 (Madrid)		51.00 % Alpha3 Cashlabs, S.L.	a	1	B
CASH Centroamerica Uno, S.L.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	2	B
CASH Centroamerica Tres, S.L.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	2	B
Gelt Cash Transfer, S.L.	Pajaritos, 24 (Madrid)		100.00 % Alpha3 Cashlabs, S.L.	a	2	B
Prosegur Custodia de Activos Digitales, S.L.	Pajaritos, 24 (Madrid)		100.00 % Alpha3 Cashlabs, S.L.	a	1	B
MiRubi Internet, S.L.	Avda. Manoteras, 38 (Madrid)		100.00 % Alpha3 Cashlabs, S.L.	a	1	B
Prosegur International Handels GmbH	Poststraße 33 (Hamburg)		100.00 % Malcoff Holding BV	a	3	B
Prosegur Cash Services Germany GmbH	Kokkolastraße 5 (Ratingen)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	1	A
Prosegur Spike GmbH	Kokkolastraße 5 (Ratingen)		100.00 % Prosegur Cash, S.A.	a	1	C
Malcoff Holdings BV	Herikerbergweg 238 (Amsterdam)		100.00 % Prosegur Global CIT, S.L.U.	a	3	B
Pitco Reinsurance, S.A.	23, Av. Monterey (Luxembourg)		100.00 % Luxpai CIT SARL	a	7	A
Luxpai CIT SARL	23, Av. Monterey (Luxembourg)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	A
Prosegur Logistica e Tratamento de Valores Portugal, Unipessoal LDA	Av. Infante Dom Henrique, 326 (Lisbon)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	1	A
			94.79 % Juncadella Prosegur Internacional, S.A.
Transportadora de Caudales de Juncadella, S.A.	Tres Arroyos 2835 (Ciudad de Buenos Aires)		4.98 % Armor Acquisition, S.A.	a	1	A
			0.23 % Prosegur Holding CIT ARG, S.A.
			95.00 % Prosegur Global CIT, S.L.U.
Prosegur Holding CIT ARG, S.A.	Tres Arroyos 2835 (Ciudad de Buenos Aires)		5.00 % Prosegur International CIT 1, S.L.	a	3	A
	La Rioja N° 441, oficinas D, E and F (Ciudad de Córdoba)		90.00 % Prosegur Global CIT, S.L.U.
Grupo N, S.A.			10.00 % Prosegur Internacional CIT 1, S.L.	a	2	A
	La Rioja N° 441, oficinas D, E and F (Ciudad de Córdoba)		90.00 % Prosegur Global CIT, S.L.U.
VN Global BPO, S.A.			10.00 % Prosegur Internacional CIT 1, S.L.	a	2	A
	Calle Grecia (Ciudad de Buenos Aires)		95.00 % Transportadora de Caudales de Juncadella, S.A.
Dinero Gelt, S.A.			5.00 % Prosegur Holding CIT ARG, S.A.	a	1	B
			39.76 % Juncadella Prosegur Internacional, S.A.
Prosegur Serviços e Participações Societarias, S.A.	Av. Ermano Marchetti, nº 1.435 (São Paulo)		60.24 % Prosegur Global CIT, S.L.U.	a	3	A
Prosegur Logistica e Armazenamento Ltda.	Av. Marginal do Ribeirão dos Cristais, 200 (São Paulo)		100.00 % Prosegur Serviços e Participações Societarias,	a	1	B
			S.A.

Information at 31 December 2021 (continued)

	Registered office	Share
Company name		% of Par Company Owning Shareholdings Value	Basis of consolidation	Activity	Auditor
Log Cred Tecnologia Comercio e Serviços Ltda.	Avenida Santos Dumont, 1883 (Ciudad de Lauro de Freitas)	100.00 % Prosegur Serviços e Participações Societarias, S.A. 0.00 % Prosegur Brasil S.A. Transportadora de Valores e Segurança	a	1	B
Luma Empreendimientos Eireli- ME	Avenida Santos Dumont, 1883 (Ciudad de Lauro de Freitas)	100.00 % Prosegur Serviços e Participações Societarias, S.A. 0.00 % Prosegur Brasil S.A. Transportadora de Valores e Segurança	a	1	B
Prosegur Pay Consultoria em Tecnologia da Informação Ltda.	Av. Ermano Marchetti, nº 1.435 (São Paulo)	100.00 % Prosegur Serviços e Participações Societarias, S.A.	a	2	B
Prosegur Brasil S.A. Transportadora de Valores e Segurança	Av.Guaratã, 633 (Belo Horizonte)	99.99 % Prosegur Serviços e Participações Societarias, S.A.	a	3	A
Gelt Brasil Consultoria em Tecnologia da Informacão Ltda.	Rua Professor Atílio Innocenti 165/02-131 (São Paulo)	100.00 % Prosegur Alpha3 Cashlabs, S.L.	a	1	B
		99.99 % Juncadella Prosegur Internacional, S.A.
Juncadella Prosegur Group Andina S.A.	Los Gobelinos 2567 (Santiago de Chile)	0.01 % Armor Acquisition, S.A.	a	3	A
		86.17 % Prosegur Global CIT, S.L.U.
Capacitaciones Ocupacionales Sociedad Ltda.	Los Gobelinos 2567 (Santiago de Chile)	10.00 % Prosegur International CIT 1, S.L.	a	1	A
		1.55 % Prosegur International Handels GmbH
		2.28 % Juncadella Prosegur Group Andina S.A.
		99.98 % Prosegur Global CIT, S.L.U.
Servicios Prosegur Ltda.	Los Gobelinos 2567 (Santiago de Chile)	0.01 % Prosegur International Handels GmbH	a	1	A
		0.01 % Juncadella Prosegur Group Andina S.A.
Empresa de Transportes Compañía de Seguridad Chile Ltda.	Los Gobelinos 2567 (Santiago de Chile)	60.00 % Juncadella Prosegur Group Andina S.A.	a	1	A
		40.00 % Prosegur International Handels GmbH
Procesos Técnicos de Seguridad y Valores, S.A.S.	CL 19 68 B 76 (Bogotá)	100.00 % Inversiones CIT 2, S.L.U.	a	1	A
		50.00 % Prosegur Colombia 1, S.L.U.
Compañía Colombiana de Seguridad Transbank Ltda.	CL 19 68 B 76 (Bogotá)	49.00 % Prosegur Colombia 2, S.L.U.	a	2	A
		1.00 % Prosegur Smart Cash Solutions, S.L.
Corresponsales Colombia SAS	Calle 11 No. 31-89 Edificio Bosko Oficina 501 de Medellín (Bogotá)	100.00 % Prosegur Cash, S.A.	a	1	A
Dinero Gelt, S.A.S.	Calle 81 Nº. 11-55 P 9 (Bogotá)	100.00 % Alpha3 Cashlabs, S.L.	a	1	B
		94.90 % Prosegur Global CIT, S.L.U.
	CL 19 68 B 76 (Bogotá)	5.10 % Prosegur International CIT 1, S.L.
Compañia Transportadora de Valores Prosegur de Colombia, S.A.		0.00 % Prosegur Cash, S.A.	a	1	A
		0.00 % Prosegur Servicios de Efectivo España, S.L.U.
		0.00 % Prosegur Global CIT ROW, S.L.U.
Prosegur Procesos, S.A.S.	CL 19 68 B 76 (Bogotá)	100.00 % Inversiones CIT 2, S.L.U.	a	1	A
		99.00 % Juncadella Prosegur Internacional, S.A.
Prosegur Paraguay, S.A.	C/ Artigas, esq. Concepción Leyes de Chávez (Asunción)	1.00 % Transportadora de Caudales de Juncadella, S.A.	a	1	A
		90.00 % Prosegur Cash, S.A.
Prosegur Cash Servicios, S.A.C.	Av. Morro Solar 1086 (Lima)	10.00 % Prosegur Global CIT, S.L.U.	a	1	B
		52.00 % Juncadella Prosegur Internacional, S.A.
Compañía de Seguridad Prosegur, S.A.	Av. Morro Solar 1086 (Lima)	48.00 % Transportadora de Caudales de Juncadella, S.A.	a	1	A
		52.00 % Juncadella Prosegur Internacional, S.A.
Prosegur Cajeros, S.A.	La Chira, 103 (Lima)	48.00 % Transportadora de Caudales de Juncadella, S.A.	a	1	B
Dinero Gelt México SA de CV	Avenida Jesús del Monte, 41 (Huixquilucan)	90.00 % Alpha3 Cashlabs, S.L.	a	1	B
		10.00 % Gelt Cash Transfer, S.L.U.
Nummi, S.A.	Avda. Gral. Fructuoso Rivera 2452 (Montevideo)	100.00 % Prosegur Cash, S.A.	a	1	A
Findarin, S.A.	Avda. Gral. Fructuoso Rivera 2452 (Montevideo)	100.00 % Prosegur Cash, S.A.	a	1	A
Costumbres del Sur, S.A.	Colonia 981 Apto: 305 (Montevideo)	100.00 % Prosegur Global CIT, S.L.U.	a	1	B
Prosegur Transportadora de Caudales, S.A.	Guarani 1531 (Montevideo)	99.92 % Juncadella Prosegur Internacional, S.A.	a	1	A
		0.08 % Armor Acquisition, S.A.
Blindados, S.R.L.	Guarani 1531 (Montevideo)	99.00 % Prosegur Transportadora de Caudales, S.A.	a	1	B
		1.00 % Prosegur Global CIT, S.L.U.
Singpai Pte Ltd.	80 Robinson Road #02-00 (Singapore)	100.00 % Luxpai CIT SARL	a	3	A
Prosec Cash Services Pte Ltd.	11 Lorong 3 TOA PAYOH 03-26 Jackson Square (Singapore)	100.00 % Singpai Pte. Ltd.	a	6	B
Prosegur Australia Holdings PTY Limited	Level 1, 65 Epping Road, Macquarie Park NSW 2113	100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	A

Information at 31 December 2021 (continued)

	Registered office		Share	Basis of consolidation	Activity Auditor
Company name		% of Par Value	Company Owning Shareholdings
Prosegur Australia Investments PTY Limited	Level 1, 65 Epping Road, Macquarie Park NSW 2113		100.00 % Prosegur Australia Holdings PTY Limited	a	3	B
Prosegur Australia Pty Limited	Level 1, 65 Epping Road, Macquarie Park NSW 2113		100.00 % Prosegur Australia Investments PTY Limited	a	1	B
Prosegur Services Pty Ltd	Level 1, 65 Epping Road, Macquarie Park NSW 2113		100.00 % Prosegur Australia Holdings PTY Limited	a	6	B
Cash Services Australia Pty Limited	Level 5, 205 Pacific Highway, St Leonards NSW 2065		100.00 % Prosegur Australia Holdings PTY Limited	a	1	B
Precinct Hub Pty Limited (Ex-Prosegur SPV 1 PTY Limited)	Level 1, 65 Epping Road, Macquarie Park NSW 2113		100.00 % Prosegur Australia Holdings PTY Limited	a	2	B
Prosegur Exchange Pty Limited	Level 1, 65 Epping Road, Macquarie Park NSW 2113		100.00 % Prosegur Cash, S.A.	a	1	B
Prosegur CIT Integral System India Private Ltd.	Regus Elegance, 2F, Elegance Jasola District Centre, Old Mathura Road (New Delhi)		95.00 % Prosegur Global CIT ROW, S.L.U. 5.00 % Luxpai CIT SARL	a	1	B
PT Prosegur Cash Indonesia	Gedung Gajah Blok A, B, C Lantai 3A Unit BIV, Jl. Dr. Saharjo Nº 111, RT/RW 001/01, (Jakarta)		49.00 % Prosegur Global CIT ROW, S.L.U.	a	2	A
Protección de Valores, S.A.	Km 4.5 Carretera a Masaya (Managua)		49.94 % CASH Centroamerica Uno, S.L. 10.12 % CASH Centroamerica Tres, S.L.	a	1	A
			39.94 % CASH Centroamerica Dos
Proteccion de Valores S.A. de CV	Calle Padres Aguilar No. 9 (San Salvador)		60.00 % CASH Centroamerica Uno, S.L. 40.00 % CASH Centroamerica Dos	a	1	A
Protección de Valores, S.A.	Colonia San Ignacio, 4ta calle 5ta Avenida (Tegucigalpa)		60.00 % CASH Centroamerica Uno, S.L. 40.00 % CASH Centroamerica Dos	a	1	A
Corporacion Allium, S.A.	15 Avenida "A" 3-67 Oficina No 5 Zona 13 (Guatemala)		90.00 % Prosegur Global CIT, S.L.U. 10.00 % Prosegur International CIT 1, S.L.	a	1	B
CASH Centroamérica Dos S.A.	Distrito Panamá (Panama)		100.00 % Prosegur Global CIT, S.L.U.	a	1	B
Prosegur Filipinas Holding Corporation	21st Floor, Philamlife Tower, 8767 Paseo de Roxas, Makati City (The Philippines)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	B
Prosegur Global Resources Holding Philippines Incorporated	18th Floor, Philamlife Tower, 8767 Paseo de Roxas, Makati City, NCR (The Philippines)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	A
Armored Transport Plus Incorporated	Unit 401 J & L Bldg. 251 EDSA, Wack-Wack, Mandaluyong City (The Philippines)		36.00 % Prosegur Global Resources Holding Philippines	a	1	B
E-CTK Solutions Incorporated	Suite 21G Burgundy Corporate Tower, 252 Sen. Gil Puyat Ave., Makati City (The Philippines)		Incorporated 36.00 % Prosegur Global Resources Holding Philippines	a	1	A
Fortress Armored Transport Incorporated	IWMPC Bldg., Ilang-Ilang St. Alido Subd. Brgy. Bulihan Malolos Bulacan (The Philippines)		Incorporated 36.00 % Prosegur Global Resources Holding Philippines	a	1	A
Consultoría de Negocios CCR Consulting Costa Rica, S.A.	San Jose Montes de Oca San Pedro, 125 Metros al Oeste de la Cámara de Industrias, Edificio PWC (San José)		Incorporated 70.00 % Prosegur Global CIT, S.L.U. 30.00 % Prosegur International CIT 1, S.L.	a	2	B
Transportadora Ecuatoriana de Valores TEVCOL Cia Ltda.	Avenida La Prensa junto a la FAE N. 3558 (Quito)		90.00 % Prosegur Cash, S.A. 10.00 % Prosegur Global CIT, S.L.U.	a	1	A
Tevlogistic, S.A.	Avenida La Prensa junto a la FAE N. 3558 (Quito)		99.99 % Transportadora Ecuatoriana de Valores TEVCOL Cia Ltda. 0.01 % Prosegur Global CIT, S.L.U.	a	1	B
Transportadora Ecuatoriana de Productos Valorados Setaproval, S.A.	Avenida La Prensa junto a la FAE N. 3558 (Quito)		99.99 % Transportadora Ecuatoriana de Valores TEVCOL Cia Ltda. 0.01 % Prosegur Global CIT, S.L.U.	a	1	B

Basis of consolidation

• a. The company controls the investee, which is fully consolidated.
• b. Existence of significant influence, equity-accounted.

Activity

• 1. Area of activities of the Cash business group.
• 1. Activities included in another business line (See Note 17 Non-current assets held for sale)
• 1. Holding company
• 1. Financial services
• 1. Ancillary services
• 1. Dormant
• 1. Other services

Auditor:

• A. Audited by EY.
• B. Not subject to audit.
• C. Audited by other auditors.

Information at 31 December 2020

	Registered office		Share	Basis of	Activity Auditor
Company name		% of Par Value	Company Owning Shareholdings	consolidation
MIV Gestión, S.A.	Avda. Gran Vía, 175-177, Pol. Gran Vía Sur, 08908 L'Hospitalet de Llobregat (Barcelona)		100.00 % Prosegur Servicios de Efectivo España, S.L.U.	a	1	B
Prosegur Servicios de Efectivo España, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	1	A
Prosegur Global CIT, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Cash, S.A.	a	3	A
Prosegur Smart Cash Solutions, S.L. (former Prosegur Colombia 3,	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	B
S.L.U.) Prosegur AVOS España, S.L.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Cash, S.A.	a	1	A
Armor Acquisition, S.A.	Pajaritos, 24 (Madrid)		95.00 % Prosegur Internationale Handels GmbH 5.00 % Prosegur Global CIT, S.L.U.	a	3	A
Juncadella Prosegur Internacional, S.A.	Pajaritos, 24 (Madrid)		68.79 % Armor Acquisition, S.A. 31.21 % Prosegur International Handels GmbH	a	3	A
Prosegur International CIT 1, S.L.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	3	B
Inversiones CIT 2, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	3	B
Prosegur Global CIT ROW, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Cash, S.A.	a	3	A
Contesta Teleservicios, S.A.	Antonio Lopez, 247 (Madrid)		100.00 % Prosegur AVOS España, S.L.	a	1	A
Integrum 2008, S.L.	Antonio Lopez, 247 (Madrid)		100.00 % Contesta Teleservicios, S.A.	a	1	B
Bloggers Broker, S.L.	Antonio Lopez, 247 (Madrid)		100.00 % Contesta Teleservicios, S.A.	a	1	B
Contesta Servicios Auxiliares, S.L.	Antonio Lopez, 247 (Madrid)		100.00 % Contesta Teleservicios, S.A.	a	1	B
Prosegur Colombia 1, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	1	B
Prosegur Colombia 2, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	1	B
Prosegur Servicios de Pago EP, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	1	A
Risk Management Solutions, S.L.U.	Ochandiano, 8 (Madrid)		100.00 % Prosegur AVOS España, S.L.	a	1	A
Compliofficer, S.L.U.	Pajaritos, 24 (Madrid)		100.00 % Prosegur AVOS España, S.L.	a	1	B
Work 4 Data Lab, S.L.	Pajaritos, 24 (Madrid)		100.00 % Risk Management Solutions, S.L.U.	a	1	B
Alpha3 Cashlabs, S.L.	Pajaritos, 24 (Madrid)		92.96 % Prosegur Cash, S.A.	a	0	B
Wohcash APP, S.L.	La Paz 44 - 4º, 46003 (Valencia)		51.00 % Alpha3 Cashlabs, S.L.	a	0	B
CASH Centroamerica Uno, S.L.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	2	B
CASH Centroamerica Tres, S.L.	Pajaritos, 24 (Madrid)		100.00 % Prosegur Global CIT, S.L.U.	a	2	B
Gelt Cash Transfer, S.L.	Pajaritos, 24 (Madrid)		100.00 % Alpha3 Cashlabs, S.L.	a	2	B
Netijam Technologies S.L.	Cedaceros, 11 (Madrid)		100.00 % Prosegur AVOS España, S.L.	a	2	B
Garantis Sumarmas, S.L.	Cedaceros, 11 (Madrid)		100.00 % Netijam Technologies S.L.	a	2	B
QSNet Comunicaciones y Servicios, S.L.	Ateca, 4 (Zaragoza)		50.00 % Netijam Technologies S.L.	a	2	B
Prosegur Custodia de Activos Digitales, S.L.	Pajaritos, 24 (Madrid)		100.00 % Alpha3 Cashlabs, S.L.	a	1	B
MiRubi Internet, S.L.	Avda. Manoteras, 38 (Madrid)		100.00 % Alpha3 Cashlabs, S.L.	a	1	B
Prosegur International Handels GmbH	Poststraße 33 (Hamburg)		100.00 % Malcoff Holding BV	a	3	B
Prosegur Cash Services Germany GmbH	Kokkolastraße 5 (Ratingen)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	1	A
Prosegur Spike GmbH	Kokkolastraße 5 (Ratingen)		100.00 % Prosegur Cash, S.A.	a	1	C
Malcoff Holdings BV	Herikerbergweg 238 (Amsterdam)		100.00 % Prosegur Global CIT, S.L.U.	a	3	B
Pitco Reinsurance, S.A.	23, Av. Monterey (Luxembourg)		100.00 % Luxpai CIT SARL	a	7	A
Luxpai CIT SARL	23, Av. Monterey (Luxembourg)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	A
Prosegur AVOS Portugal Unipessoal LDA	Avenida de Berna, nº 54 (Lisbon)		100.00 % Prosegur AVOS España, S.L.
Prosegur Logistica e Tratamento de Valores Portugal, Unipessoal LDA	Av. Infante Dom Henrique, 326 (Lisbon)		100.00 % Prosegur Global CIT ROW, S.L.U.	a	1	B
			94.79 % Juncadella Prosegur Internacional, S.A.	a	1	A
			4.98 % Armor Acquisition, S.A.
Transportadora de Caudales de Juncadella, S.A.	Tres Arroyos 2835 (Ciudad de Buenos Aires)			a	1	A
			0.23 % Prosegur Holding CIT ARG, S.A.

Information at 31 December 2020 (continued)

			Share
Company name	Registered office		Company Owning Shareholdings	Basis of consolidation		Activity Auditor
Prosegur Holding CIT ARG, S.A.	Tres Arroyos 2835 (Ciudad de Buenos Aires)		95.00 % Prosegur Global CIT, S.L.U. 5.00 % Prosegur International CIT 1, S.L.	a	3	A
Grupo N, S.A.	La Rioja N° 441, oficinas D, E and F (Ciudad de Córdoba)		90.00 % Prosegur Global CIT, S.L.U. 10.00 % Prosegur Internacional CIT 1, S.L.	a	2	A
VN Global BPO, S.A.	La Rioja N° 441, oficinas D, E and F (Ciudad de Córdoba)		90.00 % Prosegur Global CIT, S.L.U. 10.00 % Prosegur Internacional CIT 1, S.L.	a	2	A
Dinero Gelt, S.A.	Calle Grecia (Ciudad de Buenos Aires)		95.00 % Transportadora de Caudales de Juncadella, S.A. 5.00 % Prosegur Holding CIT ARG, S.A.	a	1	B
Prosegur Serviços e Participações Societarias, S.A.	Av. Ermano Marchetti, nº 1.435 (São Paulo)		39.76 % Juncadella Prosegur Internacional, S.A. 60.24 % Prosegur Global CIT, S.L.U.	a	3	A
Prosegur Logistica e Armazenamento Ltda. Log Cred Tecnologia Comercio e Serviços Ltda.	Av. Marginal do Ribeirão dos Cristais, 200 (São Paulo) Avenida Santos Dumont, 1883 (Ciudad de Lauro de Freitas)		100.00 % Prosegur Serviços e Participações Societarias, S.A. 100.00 % Prosegur Serviços e Participações Societarias, S.A.	a a	1 1	B B
Luma Empreendimientos Eireli- ME	Avenida Santos Dumont, 1883 (Ciudad de Lauro de Freitas)		100.00 % Prosegur Serviços e Participações Societarias, S.A. 100.00 % Prosegur Serviços e Participações Societarias, S.A.	a	1	B
Prosegur Brasil S.A. Transportadora de Valores e Segurança	Av.Guaratã, 633 (Belo Horizonte)		99.99 % Prosegur Serviços e Participações Societarias, S.A.	a	3	A
Gelt Brasil Consultoria em Tecnologia da Informacão Ltda.	Av. Pedroso de Morais, 2120 (São Paulo)		100.00 % Prosegur Alpha3 Cashlabs, S.L. 99.99 % Juncadella Prosegur Internacional, S.A.	a	1	B
Juncadella Prosegur Group Andina S.A.	Los Gobelinos 2567 (Santiago de Chile)		0.01 % Armor Acquisition, S.A.	a	3	A
Capacitaciones Ocupacionales Sociedad Ltda.	Los Gobelinos 2567 (Santiago de Chile)		86.17 % Prosegur Global CIT, S.L.U. 10.00 % Prosegur International CIT 1, S.L. 1.55 % Prosegur International Handels GmbH 2.28 % Juncadella Prosegur Group Andina S.A.	a	1	A
Servicios Prosegur Ltda.	Los Gobelinos 2567 (Santiago de Chile)		99.98 % Prosegur Global CIT, S.L.U. 0.01 % Prosegur International Handels GmbH 0.01 % Juncadella Prosegur Group Andina, S.A.	a	1	A
Empresa de Transportes Compañía de Seguridad Chile Ltda.	Los Gobelinos 2567 (Santiago de Chile)		60.00 % Juncadella Prosegur Group Andina S.A. 40.00 % Prosegur International Handels GmbH	a	1	A
Procesos Técnicos de Seguridad y Valores, S.A.S.	DB 74 #6-51 (Bogotá)		99.51 % Inversiones CIT 2, S.L.U.	a	1	A
			50.00 % Prosegur Colombia 1, S.L.U.
Compañía Colombiana de Seguridad Transbank Ltda.	Avda. de las Américas 41-09 (Bogotá)		49.00 % Prosegur Colombia 2, S.L.U.	a	2	A
			1.00 % Prosegur Smart Cash Solutions, S.L.
Corresponsales Colombia SAS	Calle 11 No. 31-89 Edificio Bosko Oficina 501 de Medellín (Bogotá)		100.00 % Prosegur Cash, S.A.	a	1	A
			94.90 % Prosegur Global CIT, S.L.U.
			5.10 % Prosegur International CIT 1, S.L.U.
Compañia Transportadora de Valores Prosegur de Colombia, S.A.	Avda. de las Américas, 42-25 (Bogotá)		0.00 % Prosegur Cash, S.A.	a	1	A
			0.00 % Prosegur Servicios de Efectivo España, S.L.U.
			0.00 % Prosegur Global CIT ROW, S.L.U.
Prosegur Procesos, S.A.S.	Avda. de las Américas, 42-25 (Bogotá)		100.00 % Inversiones CIT 2, S.L.U.	a	1	A
			99.00 % Juncadella Prosegur Internacional, S.A.
Prosegur Paraguay, S.A.	C/ Artigas, esq. Concepción Leyes de Chávez (Asunción)		1.00 % Transportadora de Caudales Juncadella, S.A.	a	1	A
			90.00 % Prosegur Cash, S.A.
Prosegur Cash Servicios, S.A.C.	Av. Morro Solar 1086 (Lima)		10.00 % Prosegur Global CIT, S.L.U.	a	1	B
	Av. Morro Solar 1086 (Lima)		52.00 % Juncadella Prosegur Internacional, S.A.		1
Compañía de Seguridad Prosegur, S.A.			48.00 % Transportadora de Caudales de Juncadella, S.A.	a		A
			52.00 % Juncadella Prosegur Internacional, S.A.
Prosegur Cajeros, S.A.	La Chira, 103 (Lima)		48.00 % Transportadora de Caudales de Juncadella, S.A.	a	1	B
			99.91 % Juncadella Prosegur Internacional, S.A.
Prosegur Transportadora de Caudales, S.A.	Guarani 1531 (Montevideo)		0.09 % Armor Acquisition, S.A.	a	1	A
Singpai Pte Ltd.	80 Robinson Road #02-00 (Singapore)		100.00 % Luxpai CIT SARL	a	3	A

Information at 31 December 2020 (continued)

		Share	Basis of
Company name	Registered office	% of Par Company Owning Shareholdings Value	consolidation		Activity Auditor
Prosec Cash Services Pte Ltd.	111 Geylang Road, #01-01 (Singapore)	100.00 % Singpai Pte. Ltd.	a	6	B
Prosegur Australia Holdings PTY Limited	Level 1, 65 Epping Road, Macquarie Park NSW 2113	100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	A
Prosegur Australia Investments PTY Limited	Level 1, 65 Epping Road, Macquarie Park NSW 2113	100.00 % Prosegur Australia Holdings PTY Limited	a	3	B
Prosegur Australia Pty Limited	Level 1, 65 Epping Road, Macquarie Park NSW 2113	100.00 % Prosegur Australia Investments PTY Limited	a	1	B
Prosegur Services Pty Ltd	Level 1, 65 Epping Road, Macquarie Park NSW 2113	100.00 % Prosegur Australia Holdings PTY Limited	a	6	B
Cash Services Australia Pty Limited	Level 5, 205 Pacific Highway, St Leonards NSW 2065	100.00 % Prosegur Australia Holdings PTY Limited	a	0	B
Prosegur SPV 1 PTY Limited	Level 1, 65 Epping Road, Macquarie Park NSW 2113	100.00 % Prosegur Australia Holdings PTY Limited	a	2	B
Prosegur CIT Integral System India Private Ltd.	Regus Elegance, 2F, Elegance Jasola District Centre, Old Mathura Road (New Delhi)	95.00 % Prosegur Global CIT ROW, S.L.U. 5.00 % Luxpai CIT SARL	a	1	B
PT Prosegur Cash Indonesia	Gedung Gajah Blok A, B, C Lantai 3A Unit BIV, Jl. Dr. Saharjo Nº 111, RT/RW 001/01, (Jakarta)	49.00 % Prosegur Global CIT ROW, S.L.U.	a	2	A
CASH Centroamerica Dos	Distrito Panamá (Panama)	16.67 % Prosegur Global CIT, S.L.U.	a	1	B
		49.94 % CASH Centroamerica 1
Protección de Valores, S.A.	Km 4.5 Carretera a Masaya (Managua)	39.94 % CASH Centroamerica 2	a	1	A
		10.12 % CASH Centroamerica 3
	Calle Padres Aguilar No. 9 (San Salvador)	60.00 % CASH Centroamerica 1		1	A
Proteccion de Valores S.A. de CV		40.00 % CASH Centroamerica 2	a
Protección de Valores, S.A.	Colonia San Ignacio, 4ta calle 5ta Avenida (Tegucigalpa)	60.00 % CASH Centroamerica 1			A
		40.00 % CASH Centroamerica 2	a	1
Corporacion Allium, S.A.	15 Avenida "A" 3-67 Oficina No 5 Zona 13 (Guatemala)	90.00 % Prosegur Global CIT, S.L.U.		1	B
		10.00 % Prosegur International CIT 1, S.L.	a
Prosegur Filipinas Holding Corporation	21st Floor, Philamlife Tower, 8767 Paseo de Roxas, Makati City (The Philippines)	100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	B
Prosegur Global Resources Holding Philippines Incorporated	18th Floor, Philamlife Tower, 8767 Paseo de Roxas, Makati City, NCR (The Philippines)	100.00 % Prosegur Global CIT ROW, S.L.U.	a	3	A
Armored Transport Plus Incorporated	Unit 401 J & L Bldg. 251 EDSA, Wack-Wack, Mandaluyong City (The Philippines)	36.00 % Prosegur Global Resources Holding Philippines Incorporated	a	1	B
E-CTK Solutions Incorporated	Suite 21G Burgundy Corporate Tower, 252 Sen. Gil Puyat Ave., Makati City (The Philippines)	36.00 % Prosegur Global Resources Holding Philippines Incorporated	a	1	A
Fortress Armored Transport Incorporated	IWMPC Bldg., Ilang-Ilang St. Alido Subd. Brgy. Bulihan Malolos Bulacan (The Philippines)	36.00 % Prosegur Global Resources Holding Philippines Incorporated	a	1	A
Consultoría de Negocios CCR Consulting Costa Rica, S.A.	San Jose, Costa Rica	70.00 % Prosegur Global CIT, S.L.U.	a		B
		30.00 % Prosegur International CIT 1, S.L.		2
	Transportadora Ecuatoriana de Valores TEVCOL Cia Ltda.	90.00 % Prosegur Cash, S.A.
Transportadora Ecuatoriana de Valores TEVCOL Cia Ltda.		10.00 % Prosegur Global CIT, S.L.U.	a	1	A
		99.99 % Transportadora Ecuatoriana de Valores TEVCOL Cia Ltda.
Tevlogistic, S.A.	Tevlogistic, S.A.	0.01 % Prosegur Global CIT, S.L.U.	a	1	B
	Transportadora Ecuatoriana de Productos Valorados Setaproval, S.A.	99.99 % Transportadora Ecuatoriana de Valores TEVCOL Cia Ltda.
Transportadora Ecuatoriana de Productos Valorados Setaproval, S.A.		0.01 % Prosegur Global CIT, S.L.U.	a	1	B
	Guarani 1531 (Montevideo)	99.00 % Prosegur Transportadora de Caudales, S.A.	a		B
Blindados, S.R.L.		1.00 % Prosegur Global CIT, S.L.U.		1

Basis of consolidation

• a. The company controls the investee, which is fully consolidated.
• b. Existence of significant influence, equity-accounted.

Activity

• 1. Area of activities of the Cash business group.
• 1. Activities included in another business line (See Note 17 Non-current assets held for sale)
• 1. Holding company
• 1. Financial services
• 1. Ancillary services
• 1. Dormant
• 1. Other services

Auditor:

• A. Audited by KPMG.
• B. Not subject to audit.
• C. Audited by other auditors.

APPENDIX II. – Breakdown of Joint Arrangements

Information at 31 December 2021 - Joint Ventures

Company name	Registered office	Share		Basis of consolidation	Activity	Auditor
		% of Par Value	Company Owning Shareholdings
SIS Cash Services Private Ltd.	Annapurna Bhawan, Kurji, Patna 8000001 (Bihar - India)		49.00 % Singpai Pte. Ltd.	b	2	B
SIS Prosegur Holdings Private Limited	Regus Elegance 2F, Elegance, Jasola District Centre, Old Mathura Road, New Delhi, South Delhi, Delhi, India - 110025		100.00 % SIS Cash Services Private Ltd.	b	2	B
SIS Prosegur Cash Logistics Private Limited	Annapurna Bhawan, Kurji, Patna 8000001 (Bihar - India)		100.00 % SIS Cash Services Private Ltd.	b	2	B
Dinero Gelt, S.L.	Arturo Soria, 97 - 28027 (Madrid)		70.73 % Alpha3 Cashlabs, S.L.	b	1	B
Zerius Europe, S.L.	Paseo de la Castellana, 53 (Madrid)		49.00 % Prosegur Cash, S.A.	b	1	B

Information at 31 December 2021 - Temporary Joint Ventures (JVs)

Company name	Registered office	Share	Notes	Activity
		% of Par Value Partner company in the joint venture
UTE PSISE ESC AEROPUERTO DE SANTIAGO	Pajaritos, 24 (Madrid)	100.00 %	d	1
UTE PSISE ESC PSEE REAL ALCAZAR DE SEVILLA	Pajaritos, 24 (Madrid)	100.00 %	d	1
UTE PSISE-PSEE MUSEOS VALENCIA	Pajaritos, 24 (Madrid)	100.00 %	d	2

Information at 31 December 2020 - Joint Ventures

		Share		Basis of	Activity	Auditor
Company name	Registered office		Company Owning Shareholdings	consolidation
SIS Cash Services Private Ltd.	Annapurna Bhawan, Kurji, Patna 8000001 (Bihar - India)		49.00 % Singpai Pte. Ltd.	b	2	B
SIS Prosegur Holdings Private Limited	Regus Elegance 2F, Elegance, Jasola District Centre, Old Mathura Road, New Delhi, South Delhi, Delhi, India - 110025		100.00 % SIS Cash Services Private Ltd.	b	2	B
SIS Prosegur Cash Logistics Private Limited	Annapurna Bhawan, Kurji, Patna 8000001 (Bihar - India)		100.00 % SIS Cash Services Private Ltd.	b	2	B
Dinero Gelt, S.L.	Moscatelar nº 1K, 28043 (Madrid)		60.05 % Prosegur Alpha3 Cashlabs, S.L.	b	1	B

Information at 31 December 2020 - Temporary Joint Ventures (JVs)

		Share		Activity
Company name	Registered office	% of Par Value Partner company in the joint venture	Notes
UTE PSISE ESC AEROPUERTO DE SANTIAGO	Pajaritos, 24 (Madrid)	100.00 %	d	1
UTE PSISE ESC MERCABARNA	Pajaritos, 24 (Madrid)	100.00 %	d	1
UTE PSISE ESC PSEE REAL ALCAZAR DE SEVILLA	Pajaritos, 24 (Madrid)	100.00 %	d	1
UTE PSIS-ESC GOBIERNO VASCO II	Pajaritos, 24 (Madrid)	100.00 %	d	1
UTE PSISE-PSEE MUSEOS VALENCIA	Pajaritos, 24 (Madrid)	100.00 %	d	2

Basis of consolidation

• a. The company controls the investee, which is fully consolidated.
• b. Existence of significant influence, equity-accounted.

Activity

• 1. Area of activities of the Cash business group.
• 1. Activities included in another business line (See Note 16 Non-current assets held for sale)
• 1. Holding company
• 1. Financial services
• 1. Ancillary services
• 1. Dormant
• 1. Other services

Auditor

• A. Audited by EY (KPMG in 2019).
• B. Not subject to audit.
• C. Audited by other auditors

APPENDIX III. – Summary Financial Information on Joint Ventures

Information at 31 December 2021

Thousands of Euros	SIS Cash Services Private Limited	SIS Prosegur Holdings Private Limited	Dinero Gelt	Other companies of little significance	Total
Information on the statement of financial position
Non-current assets	17,358	9,844	1,024	3	28,230
Non-current liabilities	(18,760)	(1,291)	(340)	(59)	(20,451)
Total non-current net assets	(1,402)	8,553	684	(56)	7,779
Current assets	23,143	10,940	3,417	1,259	38,759
Cash and cash equivalents	8,984	322	1,098	6	10,410
Current liabilities	(16,772)	(13,368)	(2,478)	(1,240)	(33,858)
Non-current financial liabilities	—	—	—	—	—
Total current net assets	6,371	(2,428)	939	19	4,901
Net assets	4,969	6,125	1,623	(37)	12,680
Percentage share	49 %	49 %	66 %	0 %
Share in net assets	2,435	3,001	1,067	(18)	6,485
Share accounting value	2,435	3,001	1,067	(18)	6,485
Income statement information
Revenue	32,438	12,671	5,757	801	51,667
Cost of sales	(30,640)	(13,032)	(7,984)	(790)	(52,446)
Investment impairment using the equity method	—	—	—	—	—
Financial income	155	18	2	—	175
Depreciation and amortisation	(2,073)	(493)	(98)	—	(2,664)
Financial expense	(1,371)	(370)	(20)	—	(1,761)
Expense (income) from income tax	(105)	248	316	(2)	458
Profit/(loss) of the year from ongoing operations	477	(465)	(1,928)	9	(1,907)
Expense (income) from income tax paid on earnings from operations					—
Profit/(loss) for the year	477	(465)	(1,928)	9	(1,907)
Other comprehensive income
Profit/(loss) for Investments accounted for using the equity method	234	(228)	(1,268)	5	(1,257)

aaaa

Information at 31 December 2020

Thousands of Euros	SIS Cash Services Private Limited	SIS Prosegur Holdings Private Limited	Dinero Gelt	Other companies of little significance	Total
Information on the statement of financial position
Non-current assets	11,332	9,206	500	3	21,041
Non-current liabilities	(8,214)	(1,268)	(100)	—	(9,582)
Total non-current net assets	3,118	7,938	400	3	11,459
Current assets	17,327	12,930	1,585	705	32,546
Cash and cash equivalents	2,805	1,067	327	6	4,204
Current liabilities	(16,235)	(14,670)	(809)	(709)	(32,422)
Non-current financial liabilities	—	—	—	—	—
Total current net assets	1,092	(1,738)	776	(3)	126
Net assets	4,210	6,199	1,176	—	11,585
Percentage share	49 %	49 %	52 %	0 %
Share in net assets	2,063	3,038	617	—	5,718
Share accounting value	2,063	3,038	617	—	5,718
Income statement information
Revenue	28,080	13,668	2,021	801	44,570
Cost of sales	(25,810)	(14,961)	(2,826)	(787)	(44,384)
Investment impairment using the equity method	—	—	—	—	—
Financial income	—	—	—	—	—
Depreciation and amortisation	(1,512)	(470)	(37)	(1)	(2,020)
Financial expense	(1,708)	(686)	(5)	—	(2,400)
Expense (income) from income tax	(87)	226	—	(2)	137
Profit/(loss) of the year from ongoing operations	475	(1,754)	(810)	12	(2,076)
Profit/(loss) for the year	475	(1,754)	(810)	12	(2,076)
Other comprehensive income
Profit/(loss) for Investments accounted for using the equity method	233	(859)	(424)	6	(1,045)

Consolidated Directors' report 2021

Prosegur Cash, S.A. and subsidiaries

Table of Contents

Letter from the President	129
Message from the Managing Director	131
1. WHO WE ARE, WHAT WE DO	133
1.1. VALUES	135
1.2. BUSINESS ENVIRONMENT	137
1.3. STRATEGIC PERFORMANCE	139
1.3.1. Creativity as a lever for growth	140
1.4. INNOVATION AND DIGITAL TRANSFORMATION	141
1.4.1. Thus do we innovate	141
1.4.1.1. Emblematic projects	143
1.4.1.2. Initiatives of collaboration and open innovation	144
1.4.2. Thus do we transform	146
2. FINANCIAL AND INVESTMENT	147
2.1. NET FINANCE PROFIT/(LOSS)	148
2.1.1. 2021 Economic and financial results	148
2.1.1.1. Sales by geographical area	148
2.1.1.2. Sales by business area	149
2.1.1.3. Changes to the Group's structure	150
2.1.1.4. Investments	151
2.1.2. Liquidity and capital resources	152
2.1.2.1. Liquidity	152
2.1.2.2. Capital resources	152
2.1.2.3. Analysis of contractual obligations and off balance sheet transactions	155
2.1.3. Alternative Performance Measures	156
2.1.4. Important circumstances after the reporting period	159
2.2. STOCK-MARKET RESULTS	160
2.2.1. Share evolution	160
2.2.2. Geographical distribution of free float	160
2.2.3. Relative to investors	161
2.2.4. Coverage of analysts and recommendations	162
2.2.5. Main shareholders	163

3. RISK MANAGEMENT	164
3.1. MANAGEMENT SYSTEM	165
3.2. MAP AND CATEGORY OF THREATS	166
3.2.1. Operational and business risks	167
3.2.3. Financial risks	169
3.2.2. Other potential risks	171
3.3. GLOBAL RISK ENVIRONMENT	174
3.4. CONTINGENCY PLANS AGAINST THE CRISIS	174
4. RESPONSIBLE MANAGEMENT	175
4.1. COMMITMENT TO SUSTAINABLE DEVELOPMENT	178
4.1.1. Sustainability Governance	179
4.1.2. Sustainability Policy	180
4.1.3. Sustainability Master Plan	180
4.1.4. Commitment to Sustainable Development Goals (SDG)	184
4.2. CREATION OF VALUE	190
4.3. IMPACT OF NON-FINANCIAL QUESTIONS ON THE BUSINESS MODEL	191
4.4. MATERIALITY ANALYSIS	191
5. ENVIRONMENT	194
5.1. ENVIRONMENTAL ASPECTS	195
5.2. EUROPEAN TAXONOMY ON SUSTAINABILITY	203
5.2.1. Introduction to taxonomy	203
5.2.2. Main results	204
5.2.3. Qualitative information	204
5.2.3.1. Accounting policy	205
5.2.3.2. Assessment of compliance with Regulation (EU) 2020/852	206
5.2.3.3. Contextual information on eligibility indicators	207
6. SOCIAL	208
6.1. EMPLOYEES AND PROFESSIONAL DEVELOPMENT	209
6.1.1. Training	212
6.1.2. Remuneration	214
6.1.3. Employee relations	215
6.2. RESPECT FOR HUMAN RIGHTS	218
6.2.1. Health and occupational safety 6.2.2. Non-discrimination and diversity	219 221

6.3. PURCHASES AND SUPPLY CHAIN	224
6.4. CONSUMERS	225
6.5. PROSEGUR FOUNDATION	226
6.5.1. Our adaptation to the environment in 2021	227
6.5.2. Main actions in 2021	227

7. GOVERNANCE	232
---------------	-----

7.1. CORPORATE GOVERNANCE	233
7.1.1. Ownership structure	234
7.1.2. Governance of Prosegur Cash	235
7.1.3. Structure of the Board of Directors	236
7.1.4. Organisational structure	238
7.1.5. Annual Corporate Governance Report	239
7.1.6. Annual Report on Director Remuneration	239
7.2. BUSINESS CONDUCT	240
7.2.1. Anti-corruption and bribery	240
7.2.2. Public administrations and tax contribution	246

8. APPENDICES 248

8.1. ABOUT THIS REPORT
8.2. KEY INDICATORS	250
8.2.1. Environmental matters	250
8.2.2. Social and employment matters	251
8.2.3. Other relevant indicators	265
8.3. REQUIREMENTS OF THE NON-FINANCIAL INFORMATION STATEMENT	266
8.4. COMPLIANCE WITH THE UNITED NATIONS GLOBAL COMPACT	271
8.5. INDEX OF GRI STANDARD CONTENTS	272

9. INTERNAL CONTROL OVER FINANCIAL REPORTING SYSTEM
9.1. BUSINESS ENVIRONMENT	279
9.2. FINANCIAL INFORMATION RISK ASSESSMENT	283
9.3. CONTROL ACTIVITIES	284
9.4. INFORMATION AND COMMUNICATION	288
9.5. SYSTEM SUPERVISION AND OPERATION	289
9.6. REPORT OF THE EXTERNAL AUDITOR	293

Christian Gut

Executive President

On behalf of the entire Prosegur Cash team, welcome to this 2021 Directors' Report.

In the second year of COVID-19, our efforts focused, as always, on protecting the health of our professional teams, clients and collaborators. In this financial year, we continued with the protocols launched at the start of the pandemic to achieve maximum occupational and operational safety. Always with our sights set on making operational safety compatible with the progressive recovery of our levels of activity.

The year 2021 has undoubtedly been a complicated one. The projection of a rapid transition to the post-pandemic's new normal predicted during the final quarter was postponed time and again as a result of the outbreak of new virus strains and irregular geographical vaccine distribution.

In spite of everything, we have once again seen how cash has once again demonstrated its resilience as a means of payment and its solidity as a value storage vehicle in times of high uncertainty. In fact, the latest data confirm that the level of cash in circulation has beaten all historical records. According to data from the last two updates of the Global Payments Report, paying in cash continues to be the preferred, and in some cases the only, option for a large percentage of citizens in many regions of the planet. Especially in Latin America where around three quarters of retail operations are still made in cash. Cash is important for society and is especially a common denominator in today's world in environments of high uncertainty.

Beyond the complicated environment in which we have to carry out our activities, I would like to highlight the implementation of our new strategy: Perform & Transform.

Perform refers to our goal of achieving ever more efficient operations. To do this, we have taken advantage of the market situation and have introduced changes in our operations. We thus want to make Prosegur Cash a company better prepared to boost its profitability as we return to pre-pandemic volumes of activity. We have also paid particular attention to protecting cash with special plans to control receipts and manage working capital, as well as strict Capex containment. All this accompanied by a change of culture and a focus on Agile work methodologies. Without losing our essence, our Cash character.

Regarding Transform, we seek to prepare the company for the future, a future that is already here in some cases. In the last financial year, we increased the penetration of our new products from 18.8% to 21.4%, representing a growth in their sales of 15% in absolute terms. A remarkable development considering the disinvestment in the AVOS business in the first quarter of 2021.

Our service transformation is structured around three main axes. The first is Cash Today. A service that is helping to accelerate cash transformation in society to favour its efficiency and availability. The second is ATMs, especially our alliance with Euronet to develop a leading platform focused on the LatAm market. And the third is correspondent banking, Corban. A segment in which we are developing an aggressive expansion policy to offer our traditional banking clients an alternative distribution network for their products, where we already have more than 6,000 points. In addition to these three priority axes, we add other, more disruptive, initiatives with which we explore new territories in which to develop.

All this gives us a positive look at what lies ahead. We hope that, beyond possible new variants of the virus, the impact of the pandemic on the development of economic activity will gradually disappear and this will allow the economy to move more quickly. Furthermore, the current inflationary environment should favour an increase in cash circulation and, therefore, in our underlying activity.

The year that we report on in this Report has been a very demanding challenge for all of us. For this reason, I would like to sincerely thank the efforts of our staff, a professional group of approximately 45,000 people with very diverse profiles. Thanks to them, in addition to a year of resounding challenges, 2021 was a period of innovation, creativity and daily commitment to a job well done.

In 2022, we will continue working to strengthen the trust of all stakeholders with which Prosegur Cash is related and make cash accessible to all those who use it on a daily basis in their everyday transactions.

Thank you very much.

Message from the Managing Director

José Antonio Lasanta

Managing Director

As happened in 2020, we once again take stock of a year that, inevitably, continues to be marked by the pandemic. Although it is undeniable that the vaccination processes in the countries in which we operate have gradually improved the situation, we cannot ignore that the year has not evolved without its ups and downs.

In any case, our priority continues to be to ensure that trade, which is essential for the progress of our society and our well-being, can be carried out safely and efficiently.

The start of our financial year was marked by the promulgation of the state of alarm in Germany, in mid-December 2020. A path that many of the countries in which we have operations have also travelled. The last areas to issue restrictions on movement were Sydney and Melbourne, in

Australia, well into October. At the end of the year, the new variant of the virus has caused the return of such restrictions. Although, fortunately, these have not been as severe as those experienced in 2020 or at the beginning of 2021.

In this environment, our sales remained stable with revenues of EUR 1,519 million in 2021. We must highlight the organic growth of our activity, which reached 7.0%, in addition to the 0.2% from inorganic growth, as a result of the net impact of the investments and disinvestments made. These figures are a good example of the strength in the recovery of our activity, especially if we consider that the operation of the first quarter of 2020 was not affected by the pandemic.

However, the good evolution of our revenues in local currency is penalised by the depreciation of currencies, mainly in LatAm, which as a whole is 6.4%. In absolute terms, growth for the year was 0.7%, absorbing the first quarter of the previous year without restrictions and the depreciation of the exchange rate.

By region, in Ibero-America we have seen a gradual recovery in organic growth (up to 9.9%), which reflects the good performance of the underlying business. Although currency negatively affects it by 10.1%.

Europe maintains stable organic growth with an increase of 0.8%. This is remarkable if we consider that in the first quarter of 2020 the operation was not affected by the pandemic and the restrictions in place in the countries throughout 2021. On the other hand, from the inorganic point of view, the sales reflect the disinvestment of the AVOS business in March 2021.

Finally, in the AOA region, our commercial expansion policy favoured the evolution of our organic business, which increased by 5.8%. The inorganic contribution was also positive and

amounts to 3.2%. However, the end of the aid programmes and the severity of some closures have not yet made it possible to see the full impact of the better performance of sales on the region's profitability.

Regarding profitability, EBITA has shown a constant recovery and has reached EUR 205 million, representing 13.5% in relative terms. It is also worth noting the positive impact of the cash protection measures that allowed us to generate a free cash flow of EUR 159 million as of December 2021. Likewise, we reduced the Net Debt/EBITDA ratio to 2.2x despite investing EUR 65 million in acquisitions and allocating just over EUR 60 million to the payment of dividends and the redemption of treasury stock with the aim of continuing rewarding our shareholders.

Such behaviour has been endorsed by our Standard & Poor's credit rating, which remained at BBB Stable. This is undoubtedly a resounding endorsement of the solidity of our company, even in the most difficult circumstances.

Beyond the figures, at Prosegur Cash we work every day to strengthen our way of doing things. A process of continuous improvement in which ethics, responsibility and sustainability are an intrinsic part of what we want to be as a company.

2021 brought significant progress in this area, such as the obtaining of the AENOR Good Corporate Governance certification. A milestone since Prosegur Cash and its parent company have been the first companies to achieve it. Moreover, we have been included in the companies listed in the Ibex Gender Equality Index. This is the first index that measures the presence of women in management positions in Spanish companies.

I would also like to highlight our adherence to The Climate Pledge initiative, through which we commit to reaching net zero carbon emissions by 2040. Along these same lines, in April we published our decarbonisation and emissions compensation plan. These are just some of the initiatives of our new Sustainability Master Plan, whose advances and progress we will be explaining.

All this, together with our new Perform & Transform Strategic Plan, makes us look to the future with optimism. We are convinced that the initiatives we have under way are allowing us to make Prosegur Cash a more solid and efficient company in its traditional operations, and that we are capable of evolving and transforming our service offering.

In short, today we are a company that is better prepared to face any scenario. We have an enormous capacity to react to immediately adapt to changes in our environment. And, perhaps, this is one of the great lessons learned in these months of pandemic.

At Prosegur Cash we will continue working to facilitate trade in the world, making cash accessible to the entire population and innovating to improve its management. We hereby convey the commitment of the entire team and we hope to count on your trust.

Thank you very much.

1 Who we are, what we do

1. WHO WE ARE, WHAT WE DO

'Real learning consists of understanding who you are, and your true identity', Deepak Chopra, India, physician and thinker.

Prosegur Cash is a company providing comprehensive cash management solutions. Our activity focusses on transporting high value merchandise, integrated cash cycle management, solutions aimed at automating payments in retail establishments and integrated ATM management, mainly for financial institutions, business, government agencies and central banks, mints and jewellery stores.

Prosegur Cash constantly strives to maintain its position as a global benchmark in our sector, and this is reflected in our clear commitment to achieving leadership and transformation through innovation, the incorporation of the most advanced technology, and the selection of the most talented professionals in the field.

We currently operate in the following 20 countries in four different continents: Germany, Argentina, Australia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the Philippines, Guatemala, Honduras, India, Indonesia, Nicaragua, Paraguay, Peru, Portugal, and Uruguay.

At present we have a workforce of approximately 45,000 employees, 575 branch offices and a fleet of more than 9,000 armoured and light vehicles.

As specialists in the design and implementation of solutions to ensure the secure and efficient management of cash, Prosegur Cash has developed the following basic lines of business:

LOGISTICS

Local and international transport services, via land, sea and air, of funds and other valuable goods, such as jewellery, works of art, precious metals, electronic devices, pharmaceutical products, voting ballots and legal evidence, among others. These services include collection, transport, custody, delivery and deposit in vaults.

CASH MANAGEMENT

Comprises counting, processing, equipment, custody, packaging and delivery of cash in bank notes and coins, and the loading of ATMs.

NEW PRODUCTS

It includes the automation of payments in retail establishments via Cash Today, including, among others, devices for paying in cash, recycling or dispensing bank notes and coins. Likewise, ATM integrated management, including planning, supervision, first- and second-tier maintenance, and tallying. Also correspondent banking activities (Corban): covering collection and payment management and invoice payment services.

Prosegur Cash has a workforce of approximately 45,000 employees, 575 branch offices and a fleet of more than 9,000 armoured and light vehicles.

1.1. VISION AND VALUES

'The ones who are always back are usually the ones who have never gone anywhere', Antonio Machado, Spain, author.

At Prosegur Cash, we are very clear about what we do and why we do it. Our fundamental purpose is to facilitate business in all the territories in which we operate. We contribute to promoting the security and efficiency of business relations in an innovative way, through a continuous process of optimisation and digitalisation of our services, and particularly in areas relating to finance and distribution.

The ambition of a global leader

At Prosegur Cash, we have built on the solid experience of the Prosegur Group, which has established itself as a proven market leader in the private security sector over the last 45 years. This tradition and strong corporate culture of a job well done has been successfully transferred to our specific sphere of operation.

Today, after just over five years in the market as an independent business line, we are the market leader in cash management activities in 11 of the markets in which we operate. We are the second largest company in the sector in eight of the remaining countries, and are currently expanding in Indonesia, where operations are still in their infancy.

New corporate identity

2020 saw the presentation of a new corporate identity, shared with the rest of the business units of the Prosegur Group, which we went on to implement, develop and consolidate throughout 2021. This identity sets out our commitment to comprehensive protection and our vocation as a pioneering and groundbreaking company.

The new proposal common to the whole group, as set forth at the time, was: 'To make the world a safer place by taking care of people and companies, staying at the forefront of innovation'.

This declaration of intent formed the groundwork for establishing what have now become our fundamental corporate principles:

Sustainability is a key value

In line with the evolution of our corporate culture, since last spring both the Prosegur Group and Prosegur Cash have had a Sustainability Master Plan approved by their respective Board of Directors. It outlines the guiding principles that shape the company's commitment to environmental, social and governance.

The document is based on an unwavering commitment to the 17 Sustainable Development Goals (SDGs) launched in 2015 by the United Nations, which have become an integral part of Prosegur's business strategy and governance system. The development of this programme is supervised by a newly created Sustainability Committee, led by the Group's Management Committee, and it is applied to and in full force in the specific field of Prosegur Cash.

Independent recognition

This process of continuous improvement of our global ethical perspective and the responsibility and sustainability of our business model yielded tangible results over the last year.

For example, in November 2021, Prosegur Cash received a further accolade when it became the first company to obtain the AENOR Good Corporate Governance certification. That same month, Prosegur Cash was included in the companies listed in the Ibex Gender Equality Index. This is the first index that measures the presence of women in management positions in Spanish companies.

Ethical commitments and new partnerships

In addition to this independent recognition for responsibility and excellence in business practices, 2021 also saw the Prosegur Group undertaking noteworthy major ethical commitments.

In February, both the parent company and Prosegur Cash signed up to the environmental Climate Pledge initiative, a commitment launched in 2019 by Amazon and Global Optimism consisting on attaining zero net carbon emissions by 2040. On 21 April, we announced a comprehensive decarbonisation and emissions offsetting plan, which, among other initiatives, includes an ambitious waste management project in Rio de Janeiro (Brazil).

Further specific environmental initiatives undertaken in recent months include progress in the hybridisation and electrification of the company's vehicle fleet and the use of exclusively renewable energy sources in Spain. Finally, on 25 October, the Prosegur Group announced that it had reached an agreement to become a member of Forética, a benchmark organisation in the field of sustainability and corporate social responsibility in Spain.

Since last spring, the Prosegur Group has a Sustainability Master Plan approved by its Board of Directors.

1.2. BUSINESS ENVIRONMENT

'No medicine cures what happiness cannot', Gabriel García Márquez, Colombia, writer

The past year has been characterised by the persistence of a global health crisis that began in January 2020. Two years later, the severity and magnitude of this pandemic continue to pose an unprecedented social, economic and humanitarian challenge.

In 2021, we witnessed the succession of different waves of contagion, although with a general trend of sustained improvement in the health situation compared to the worst moments of the previous year. LatAm stands out for its slower progress in terms of vaccination programmes, particularly in contrast to the European countries in which we operate. In the case of our Asia-Pacific operations, the incidence of new waves has been subtler.

This sequence of peaks and troughs has hampered a sustained recovery of economies, but has in no way altered our priority precisely during the pandemic: to continue contributing toward a safe revitalisation of our business activities. In an unprecedented health context, we have taken special care to protect our staff and our clients.

Despite the uncertainty, in 2021 we were able to demonstrate the strength of our business model. As we already observed in 2020, the decrease in business activity caused by the lockdowns also entailed a drop in activity volumes. However, the progressive return to normality has made it possible to increase cash volumes, a preponderant means of payment in all regions in which we operate.

In any event, we have undertaken a series of additional measures in order to continue to strengthen the efficiency and sustainability of our business model. We have therefore focused on the digitisation and optimisation of our processes. We have also streamlined and made our organisation, production and cost structures more flexible by adapting them to the decreased activity levels brought about by the pandemic. Finally, we have taken financial measures to ensure our working capital and optimise our Capex.

Furthermore, during the first quarter of 2021, we made a strategic disinvestment with the sale to the Prosegur Group of one of our new business lines, Prosegur AVOS. By means of this transaction we seek to continue to promote our area of New Products as a key element of our transformation strategy, prioritising and accelerating those investment opportunities most synergistic with our traditional business.

In May 2021 we closed an agreement for the creation of a joint venture with Euronet Worldwide, a leading global company in technological solutions and means of payment provider. The aim of this strategic alliance is to own, manage and promote independent ATM management networks, as well as to provide ATM outsourcing services for financial institutions in several LatAm countries.

By means of this platform we will offer the best outsourcing services for ATMs to LatAm financial institutions. One of the most profitable places on the planet in which to offer its population access to cash, as it continues to be the consumers' most widely used means of payment and a critical element in domestic economies.

For the year 2022, we hope to continue to increase the volume and profitability of our traditional activities, owing to factors such as the foreseeable recovery of private consumption and a moderate increase in inflation, according to data from the International Monetary Fund and World Bank. In parallel, we hope that our new products and services will become particularly competitive in the recovery and return to normal anticipated for the years ahead.

In general lines, as the basis of our business model, cash payment demonstrated an unexpected degree of resilience in 2021 for many analysts.

1.3. STRATEGIC PERFORMANCE

'The future is not what will happen to us, but is instead what we are going to do', Jorge Luis Borges, Argentina, author.

In the Prosegur Group we believe that the most powerful steps are those that keep to a flexible but well-defined route. For this reason, last spring we presented our Strategic Plan for 2021-2023, a series of key lines of action aimed at consolidating and expanding the global leadership of our company. A springboard for changing the world.

Perform & Transform are the two key concepts driving the Group's commitment to the immediate future:

• 1. Perform because we want to continuously improve the way we do things. We strive to achieve continuous improvement of processes, the generation of operational efficiencies and the requisite flexibility to operate in the post-pandemic context. We set measurable goals and demand specific results in the short and medium term.
• 1. Transform because essential focus on immediate performance needs to be compatible with a medium and long-term vision that requires us to adapt to change and offer new responses to the various challenges raised by our clients. In short, it means innovation, optimisation and continuous growth.

Perform, an operational principle

'Perform' reflects our insistence on a job well done, our determination to retain and enhance the qualities that have enabled us to maintain our level of excellence for decades. Almost two years of pandemic have demonstrated just how resilient and solid our company really is. For the immediate future, continuous growth means

expanding on these strengths and focusing on three priority lines of action:

• ^J Flexible adaptation of our traditional business model to the new reality arising from the healthcare crisis.
• ^J Increased efficiency by optimising the cost of our operations and focusing on profitability.
• ^J Improved cash flow by optimising the management of our investments and seeking out new sources of financing.

Transform, adapting to changes

'Transform' means building the future by providing our company with a solid technological and innovation structure that consolidates our leadership in the sector. This process is based on four closely connected pillars:

• ^J The transformation of our practices and business model must be based on solid technological foundations.
• ^J Starting from technology, we create and underpin a new operating model.
• ^J The result is an innovation model.
• ^J Finally, these transformations must be translated into a far-reaching corporate culture of innovation and technological excellence, permeating our entire structure, and reflected in all our day-today activities and our relationships with clients.

Both concepts, which are common to all Prosegur Group business lines, have been adapted to the specific circumstances of the cash management sector, and form a fundamental part of our basic line of action, the pillars of Prosegur Cash.

That explains why we always ensure our ecosystem of business activities is open to ground-breaking innovation via a process of accelerated transformation operating simultaneously in three different time frames:

• ^J The first is the consolidation of the activities that constitute the company's core business: cash transportation and custody, cash management services and conventional ATM management.
• ^J The second encompasses business lines experiencing rapid growth, such

as New Products for comprehensive and advanced ATM management, and initiatives like Cash Today and Corban.

^J The third consists of innovation and development of new services and products of a more disruptive nature, but always aimed at generating high added value.

Perform & Transform are the two key concepts that inspire our commitment to the immediate future, as explained in our Strategic Plan.

1.3.1. Creativity as a lever for growth

In purely quantitative terms, we expect to consolidate revenue growth year-on-year so that Prosegur Cash will achieve a turnover of between EUR 2,900 and 3,000 million by 2030.

Up to that date, we are counting on the fact that the upward consolidation of our business plan will allow us to gradually recover profitability in terms of EBITA prior to the health crisis. Achieving this series of goals requires a growing diversification of sales, by region as well as business unit, so that New Products will have a 40% weight of sales by 2030.

In terms of quality, our roadmap focuses on the deployment of an increasingly comprehensive and refined technology infrastructure that will underpin our operations and make the company more profitable and better able to offer differentiated solutions to our clients Essentially, we are working to develop the solutions and services that will be the key to our future.

We expect to consolidate year-on-year growth to allow us to achieve a turnover of between EUR 2,900 and 3,000 million by 2030.

1.4. INNOVATION AND DIGITAL TRANSFORMATION

'There are no norms. All people are exceptions to a rule that doesn't exist', Fernando Pessoa, Portugal, author.

Prosegur Cash, in common with the Prosegur Group as a whole, believes in the transformative power of technology Ours is a company focused on the accelerated and systematic transformation of its entire corporate structure, business lines, processes, equipment, products and services. And achieving this goal necessarily entails a far-reaching and simultaneous cultural transformation. Our aim is to respond to a rapidly changing world with equally rapid progress. We cannot afford to be late for our appointment with the future.

The Prosegur Group is investing heavily in the development of disruptive technologies. We consider this an area of utmost importance, and are determined to spare no resources in achieving this objective. Hence the significance of the fact that the EIB (European Investment Bank) has granted the Group a EUR 57.5 million loan to finance innovation, digitalisation and sustainability projects through to 2023. This not only represents a substantial financial boost, but also a symbolic endorsement of the confidence shown in our transformation and innovation plan by a leading financial institution, for both the Prosegur Group and Prosegur Cash.

The projects that will receive this financial backing are part of the Innovation and Digital Transformation Plan, which aims to optimise flexibility, processes and operational efficiency. In addition to other initiatives focused on energy efficiency and emissions reduction to meet our Sustainability Master Plan.

1.4.1. Thus do we innovate

Cash management and in transit is currently at an encouraging technological crossroad. The major advances introduced in the sector in recent years have created a scenario in which a radical transformation of our business is both possible and necessary. We cannot afford to wait.

For this reason, in the last financial year we have focused on exponentially strengthening our capacity for innovation, while designing a working methodology focused on the development of new products and services. This methodology is built on three basic pillars:

• • ^J Desirability (generating desire).
  • ^J Feasibility (we ensure it is viable).
  • ^J Scalability (we try to make it scalable).

In practice, this involves listening to clients, identifying their problems and understanding their expectations and necessities. Only through this process of active listening and thorough understanding can we launch products that respond to the real demands of the market. Of course, the product is confirmed with the client and if the result is satisfactory, an action plan is designed that can be implemented on a massive scale.

Innovation is allowing us to develop new proposals that add value to our clients and makes us stand out from our competitors. Properly protecting this knowledge forms an intrinsic part of the innovation processes.

To this end, the Prosegur Group has a Corporate Policy as a cornerstone of its Intellectual and Industrial Property. The Intellectual Property Committee is responsible for supervising this Corporate Policy and makes decisions on management and marketing strategy. The Committee is made up of representatives of the Innovation Division; the Global Strategy and Development Division; the Global Media Management Division; the Global Human Resources Management Division; the Tax Division; the Global Institutional Relations Division; the Marketing Division, and the Legal Division.

1.4.1.1. Emblematic projects

During 2021 the Prosegur Group has been working on developing and putting into practice more than 30 world-wide applied technological innovation projects. This entails a certified total investment of EUR 26.6 million.

The basis of all these projects has been our specific knowledge of the security sector, the creativity and technological skills of our equipment and the use of the data available to us. These combined qualities enable us to build a unique proposal for solutions. Alone, in close collaboration with start-ups or in the framework of corporate partnerships, we have become specialists in technological fields such as Artificial Intelligence (AI), Data Science, Internet of Things or blockchain.

As an independent business line and listed subsidiary of the Group, Prosegur Cash remains highly focused on its transformation projects, which are progressively gaining importance in the company's activity. In 2022, we expect further consolidation of initiatives such as Cash Today, as well as our correspondent banking services and our ATM network. Some of the main initiatives resulting from our firm commitment to ongoing innovation.

Digitalisation of cash

Cash Today is the digitisation of cash at the point of sale. It offers automation solutions adapted to both large and small businesses. This service provides our clients with an intelligent and connected safe deposit, which facilitates the immediate crediting of the cash that businesses collect.

Cash is entered into a machine connected to Prosegur Cash's operating systems and is instantly digitalised and credited to the client's bank account. This allows prompt and efficient monitoring of the cash cycle of the business, avoids the risk of loss, and provides real-time information on all movements made, while also incorporating a counterfeit detection system validated and approved by the European Central Bank.

It should be noted that in April we reached an agreement with Banco Santander for the joint marketing of Cash Today in Spain. This collaboration allows us to combine the strengths of two leading companies in their respective sectors, and to pass on to the client the advantages of personalised and simplified products, with a single leasing contract and a fixed fee for the entire duration of the contract.

Self-service solutions

Prosegur Cash has built the first Self-Service Solutions plant in the Technological Pole of the Argentinian city of Buenos Aires. Measuring more than 4000 square metres, this facility is the first of its kind in LatAm.

This gigantic innovation hub offers repair services for modules and devices to countries such as Peru, develops transactional software for Australia and the Philippines, and collaborates with Spain in the design of front-end software for ATM networks.

Emergency action plans to combat financial desertification

Prosegur Cash is also developing pilot programmes to bring cash to geographical areas where there are no banks or where banks are routinely closing. One of these is the installation of independent multi-service ATMs in rural municipalities in the Spanish province of Salamanca, one of the areas at greatest risk of financial desertification in the country. Seven towns have taken up this initiative, which aside from an immediate economic return, also aims to make life easier for local residents and stimulate activity in local businesses.

In addition, in 2021 an agreement was reached with the Diputación de Salamanca to provide the provincial library bus service (a travelling library that covers several routes bringing books to 70 sparsely populated rural municipalities) with an onboard cash dispenser so that local residents can carry out basic financial transactions These programmes are in the trial stage and very limited in scope, but may, in the medium term, lead to the extension of similar services to the whole of so-called 'Empty Spain', and to other parts of Europe and the world where banks are disappearing or simply non-existent.

1.4.1.2. Initiatives of collaboration and open innovation

Canvassing and cooperation with start-ups

As part of a company commitment to collaborative solutions, 2020 saw the Prosegur Group launch its first edition of the COME IN Open Innovation programme, a pioneering initiative in our sector that seeks to respond to the security challenges of the future. With this, our group wants to open its doors, on a worldwide basis, to the talent and creativity of any company offering innovative and transformative solutions in the field of security

In the two editions held so far, more than 550 proposals have been presented. The Prosegur Group as a whole is already working with around fifteen of the finalist start-ups from countries such as Spain, South Korea, Finland and the United Kingdom Some of them, such as Luminance, Veridas or Thinger.io, are already part of our business ecosystem.

In the second edition, technological challenges focused on the specific area of cash management and logistics:

^J In the case of Prosegur Cash, a focus on data analysis in armoured vehicle fleets to improve their mobility, generate early warnings of possible failures, avoid accidents and reduce environmental impact and fuel consumption.

Prosegur Tech Ventures

As a complement to this open innovation program, the Prosegur Group is the only private security conglomerate to have a corporate venture capital (CVC) fund, known as Prosegur Tech Ventures. Funded with EUR 30 million, this project contributes to the financing of new external development trends and technologies which could have a disruptive impact on our sector.

Other initiatives

Innovative talent is also present within our organisation and we have set ourselves the goal of bringing it to the surface. With this goal in mind, in 2021 we launched the first edition of our global ideation program: The Best Rocket. The innovation team, in cooperation with the various business areas, set a series of challenges to respond to the needs of each division. By way of an online platform, all employees had the opportunity to propose, comment on and build upon the proposals of their colleagues in order to construct the Prosegur of the future. The results went far beyond all of our expectations. We received 1,135 ideas, more than 7,000 employees from 21 countries have participated at one time or another in the process and, in total we registered more than 40,000 interactions with the ideas presented.

The 5 projects which were elected, one for each business department, have gone through to the second phase: the global intrapreneurship program. With The Explorer Rocket our aim is to convert the selected proposals into solutions in order to include them in our portfolio of services. To this end, we have put together five teams, in which 27 professionals have worked for six months to create a prototype. Each team received training and guidance from academic experts and from our managers, and they have been able to count on the support of the business units and the Innovation team. During the Innovation workshops, the participants presented their solutions to the committee of experts, who then selected the winners.

The Prosegur Group has an internal Observatory of technological innovation where highly qualified professionals closely observe the changes and trends that are taking place, and work to identify new opportunities for each of our lines of business.

In the field of higher education, we cooperate actively with the Connected Industry Department at the Escuela Técnica Superior de Tecnología (ICAI) at the Comillas Pontificia University in Madrid, where we are developing various courses of action. These include the organisation of hackathons and the development of projects with students and researchers from the Prosegur Chair.

Finally, being part of the Industrial Liaison programme of the prestigious Massachusetts Institute of Technology (MIT) gives us a broad perspective of the latest technological trends, offers us high quality training programs and allows us to make contact with the start-ups emerging from this academic environment, which is so rich and conducive to innovation. We have also signed up, as a cooperating partner, to MIDE (Madrid innovation Driven Ecosystem), an initiative aimed at developing the entrepreneurship and innovation ecosystem in the Madrid region with a global perspective.

1.4.2. Thus do we transform

At Prosegur Cash, we have a digital transformation plan for all of our activities, which we have named the Global Optimum program. In addition to specific initiatives of varying scope, the programme pursues a series of objectives from which we hope to derive future opportunities and levers for growth:

• ^J Bringing continuity to our technological development, thus reducing the risk of obsolescence of our IT systems.
• ^J Automating and optimising the monitoring and control of our activities and permitting a homogeneous comparison of business in all the territories where we operate.
• ^J Improving client experience of interaction with Prosegur Cash in order to raise levels of satisfaction with our services.
• ^J Streamlining our financial management and control of such crucial aspects such as Opex, Capex, working capital and revenue guarantees.

During the period covered by the Plan, the Prosegur Group as a whole plans to invest significant resources in digitalisation and a far-reaching renewal of our operating model. Implementation of this plan is being carried out country by country: we began in Portugal in 2021 and by 2023 we will have extended it to a number of countries which will together represent two thirds of our global income.

Thinking differently, thinking better

Prosegur Cash has made notable progress with the introduction of the Agile system, an advanced project development methodology used by the world's most advanced companies. In essence, it serves to optimise and streamline creative teamwork by segmenting projects so as to allow projects to be tackled in a much faster and more flexible manner.

This potent transformation tool, one of the keys to our digital transformation model, is already being used by 31 teams, around one tenth of our workforce. In 2022 we plan to extend its use by offering specific training on this to a high percentage of our professionals, giving priority to those who may take the most advantage of it in their daily tasks.

Financial and investment performance

2. FINANCIAL AND INVESTMENT

2.1. NET FINANCE PROFIT/(LOSS)

2.1.1. 2021 Economic and financial results

Millions of Euros		2020	2021	Variation
Sales		1,507.5	1,518.8	0.7%
EBITDA		272.4	299.8	10.1%
	Margin	18.1%	19.7%
Depreciation and amortisation*		(87.4)	(94.8)
EBITA		185.0	204.9	10.8%
	Margin	12.3%	13.5%
Intangible asset amortisation		(33.3)	(21.0)
Goodwill impairment		(17.3)	(18.1)
EBIT		134.4	165.9	23.4%
	Margin	8.9%	10.9%
Financial profit/(loss)		(46.1)	(58.6)
Profit/(loss) before tax		88.3	107.3	21.5%
	Margin	5.9%	7.1%
Taxes		(72.7)	(74.2)
	Tax rate	(82.3%)	(69.2%)
Net profit/(loss) from ongoing operations		15.6	33.1	111.5%
Net result		15.6	33.1	111.5%
Non-controlling interests		0.3	0.1
Consolidated net profit/(loss)		15.9	33.2	108.6%
Basic profit per share		0.01	0.02

*Includes amortisation of property, plant and equipment, rights of use, real estate investments and amortisation and impairment of computer software.

2.1.1.1. Sales by geographical area

Consolidated sales are distributed by geographical area as follows:

Millions of Euros	2020	2021	Variation
Europe	436.1	399.6	(8.4) %
AOA	98.9	109.7	11.0 %
LatAm	972.5	1,009.5	3.8 %
Prosegur Cash Total	1,507.5	1,518.8	0.7 %

In Prosegur Cash we increased our consolidated turnover by 0.7%. This increase is due to the organic growth of 7.0% and inorganic growth of 0.2% recorded in the year, which offset the negative effect of the exchange rate of 6.4%.

With regard to Europe, the 8.4% drop in sales is explained by a 9.2% inorganic decrease, a result of the sale to Prosegur Compañía de Seguridad of certain areas of our added value outsourcing processes and services business (AVOS) for financial institutions and insurance companies, as well as the associated technology. Excluding

2.1.1.2. Sales by business area

Aggregated consolidated sales are distributed by business area as follows:

this effect, Europe recorded an organic growth of 0.8% during 2021.

On the other hand, LatAm recorded an organic growth of 9.9% which, together with an inorganic growth of 4.1%, offset the negative impact of the exchange rate, which was 10.1%, causing a 3.8% growth in sales in 2021.

Lastly, AOA increased its sales by 11.0%, the result of organic and inorganic growths of 9.9% and 4.1%, in addition to a positive impact of the exchange rate of 1.9%.

Europe			AOA			LatAm			Prosegur Cash Total
Millions of Euros	2020	2021	Variation	2020	2021	Variation	2020	2021	Variation	2020	2021	Variation
Transport	220.4	213.3	(3.2) %	60.8	67.1	10.5 %	591.4	556.2	(5.9) %	872.6	836.7	(4.1) %
% of total	50.5 %	53.4 %		61.5 %	61.2 %		60.8 %	55.1 %		57.9 %	55.1 %
Cash management	116.6	119.0	2.0 %	25.2	23.0	(8.9) %	210.6	214.6	1.9 %	352.4	356.5	1.2 %
% of total	26.7 %	29.8 %		25.5 %	20.9 %		21.7 %	21.3 %		23.4 %	23.5 %
New products	99.1	67.3	(32.1) %	12.9	19.6	52.0 %	170.6	238.7	39.9 %	282.5	325.6	15.2 %
% of total	22.7 %	16.8 %		13.0 %	17.9 %		17.5 %	23.6 %		18.8 %	21.4 %
Prosegur Cash Total	436.1	399.6	(8.4) %	98.9	109.7	11.0 %	972.5	1,009.5	3.8 %	1,507.5	1,518.8	0.7 %

Our Cash in Transit business decreased its turnover by 4.1% as a result of a drop in sales in Europe and LatAm. In the case of Europe, sales decreased due to a drop in volume as a result of the COVID-19 pandemic restrictions, that have continued throughout 2021. On the other hand, sales in LatAm decreased due to the negative impact of the exchange rate and disinvestment in Mexico.

With respect to the Cash Management business, sales increased by 1.2% owing to improved activity in Europe and LatAm and to the business combinations formed during the year.

On the other hand, the New Products business grew by 15.2%, despite AVOS business disinvestment, driven essentially by AOA and LatAm sales, backed by cash automation solutions for retail trade and ATMs, and by correspondent banking services acquired through business combinations, which offset the drop in sales in Europe.

2.1.1.3. Changes to the Group's structure

The changes in the composition of the Prosegur Cash Group during 2021 were mainly due to the following acquisitions:

• ^J Business combinations in LatAm. During the 2021 financial year, Prosegur Cash acquired a series of companies in LatAm devoted to payment and collection management. The total purchase price was EUR 59,102 thousand, comprising a cash consideration of EUR 24,267 thousand, a deferred contingent consideration amounting to a total of EUR 21,771 thousand, due in 2022, 2023 and 2024 and a deferred payment of EUR 13,064 thousand, due in 2022.
• ^J Business combinations in Europe. In 2021, Prosegur Cash acquired in Europe a series of assets relative to cash-intransit and cash management services. The total purchase price was EUR 150 thousand, comprising a cash payment of EUR 110 thousand and a deferred payment of EUR 40 thousand maturing in 2022.

The following companies were incorporated in 2021:

• ^J In August 2021, Dinero Gelt SAS was incorporated in Colombia.
• ^J In December 2021, Prosegur Exchange Pty Limited was incorporated in Australia.

The following companies were wound up in 2021:

^J In January 2021, Garantis Sumarmas, S.L. was wound up in Spain.

During April 2021 the dormant company Dinero Gelt México S.A. de C.V. was acquired in Mexico.

Purchase of AVOS Group from the parent company of the Prosegur Group

On 31 March 2021, Prosegur Cash sold to its parent company, Prosegur Compañía de Seguridad, certain areas of the added value outsourcing processes and services business (AVOS) for financial institutions and insurance companies, as well as the associated technology.

The transaction is in response to the strategic decision, independently taken by Prosegur Cash to better achieve its business goals, to crystallise the current value of the business sold, freeing up resources and investment capacity to focus on other priority growth opportunities.

The transaction consisted of the sale of Prosegur Cash to Prosegur of 100% of the share capital of the holding company of the aforementioned business in Spain, Prosegur AVOS España, S.L.U., for a price of EUR sixty seven million less the net financial debt. This business represents, approximately, 85% of the operating profit/ (loss) of the global business of Prosegur Cash in certain areas of activity, with the parties having agreed to jointly and in good faith analyse and explore the possibility of Prosegur Cash selling to Prosegur the rest of that business that it currently carries out in other countries, without there being any agreement on this.

The transaction has been reviewed by the Prosegur Cash Audit Committee which has confirmed that it is fair and reasonable from the Company's point of view and from the various Prosegur shareholders. For its part, KPMG has issued a fairness opinion for the Board of Directors of Prosegur Cash confirming that the aforementioned sales price is reasonable in financial terms for Prosegur Cash.

In light of the above, to adapt the Framework Agreement on relations between Prosegur and Prosegur Cash of 17 February 2017 to the new reality in terms of the development of the aforementioned added value outsourcing processes and services business (AVOS) for financial institutions and insurance companies, the parties have signed a non-extinguishing modifying novation contract of the Framework Agreement.

2.1.1.4. Investments

All of the Prosegur Cash Group's investments are analysed by the corresponding technical and operating areas and the management control department, which estimate and examine the strategic importance, return period and yields of the investments before these are approved. Subsequently these are submitted to the investment team for a final decision on whether to proceed with the investment. Investments in excess of EUR 0.6 million are submitted to Prosegur Cash's Management for approval.

Amortisation and depreciation charges totalled EUR 83.2 million in 2021 (2020: EUR 83.8 million). Property, plant and equipment accounts for EUR 56.1 million (2020: EUR 53.1 million) to computer software EUR 6.1 million (2020: EUR 7.1 million) and other intangible fixed assets EUR 21.0 million (2020: EUR 23.6 million).

The total investments analysed by the Investment Committee in 2021 with comparative figures from 2020 are detailed below:

Total	46.8	45.4
Fourth Quarter	18.5	13.2
Third Quarter	10.8	8.3
Second Quarter	6.8	16.9
First Quarter	10.7	7.0
Millions of Euros	2020	2021

EUR 59.7 million was invested in property, plant and equipment in 2021 (2020: EUR 65.9 million). Furthermore, we invested EUR 7.5 million in computer software (2020: EUR 6.1 million).

2.1.2. Liquidity and capital resources

We have a powerful cash generator in Prosegur Cash, and therefore have no financing difficulties and can enter into strategic financing agreements designed to optimise financial debt, control debt ratios and meet growth targets.

At Prosegur Cash we calculate net financial debt considering total current and non-current borrowings plus net derivative financial

2.1.2.1. Liquidity

At Prosegur Cash we keep a reasonable level of liquid reserves and a great financing capacity available to ensure flexibility and rapidity in meeting the requirements of working capital, of investing capital or inorganic growth.

At 31 December 2021 the Prosegur Cash Group has available liquidity for its Cash business of EUR 730.7 million (2020: EUR 676.0 million). This amount is mainly compound by:

• ^J EUR 250.8 million of cash and cash equivalents (2020: EUR 401.8 million).
• ^J EUR 300.0 million of non-current credit available, relating to the drawable syndicated loan arranged on 10 February 2017 (2020: EUR 145.0 million).

instruments, less cash and cash equivalents, less current investments in group companies and less other current financial assets.

Net financial debt (excluding other non-bank borrowings corresponding to deferred payments for M&A) at 31 December 2021 amounts to EUR 523.6 million (2020: EUR 538.2 million).

^J Other unused credit facilities for EUR 179.9 million (2020: EUR 129.2 million).

This liquidity figure accounts for 48.1% of consolidated annual sales (2020: 44.8%), which ensures both the short-term financing needs and the growth strategy.

The efficiency measures of internal administrative processes that we have implemented in recent financial years have helped to substantially improve business cash flow. The maturity profile of the Prosegur Cash debt is in line with its capacity to generate cash flow to repay it.

2.1.2.2. Capital resources

The structure of the long term financial debt is determined by the following contracts:

^J On 10 February 2017 Prosegur Cash S.A. arranged a new five-year syndicated credit financing facility of EUR 300 million to provide the company with long-term liquidity. On 7 February 2019 this syndicated credit facility was renewed, and its maturity extended by another 5 years. In February 2020 the

maturity was extended until February 2025. Additionally, in February 2021, the maturity was extended again until February 2026. At 31 December 2021, no amount related to this operation had been drawn down (EUR 155 million at 31 December 2020).

• ^J On 28 April 2017, Prosegur Cash, via its subsidiary Prosegur Australia Investments Pty, arranged a syndicated credit financing facility in the amount of AUD 70 million. The first maturity was in the first half of 2021 for AUD 10 million. The second and third will be in 2022 and 2023.
• ^J At 31 December 2021, the drawn down capital corresponding to the loan amounts to AUD 60 million (at 31 December 2021 equivalent to: EUR 38.4 million). At 31 December 2020, the drawn down capital corresponding to the loan amounts to AUD 70 million (at 31 December 2020 equivalent to EUR 44.04 million).
• ^J On 4 December 2017, Prosegur Cash, S.A. launched a EUR 600 million bond issue maturing on 4 February 2026. The bonds trade in the secondary market – the Irish Stock Exchange – accruing an annual coupon of 1.38%, payable at the end of each year.
• ^J On 2 June 2021, Prosegur Cash, via its subsidiary in Peru Prosegur Compañía de Seguridad SA, arranged a financing operation in the amount of PEN 300 million for a five-year term. At 31 December 2021, the drawn down capital was PEN 270 million (at 31 December 2021 equivalent to: EUR 59.6 million).

In consolidated terms, gross non-current financial debt (excluding other non-bank payables corresponding to deferred payments for acquisitions) with maturities of longer than one year at the end of 2021 amounts to EUR 716.4 million (2020: EUR 826.5 million), basically supported by the bond issued on 4 December 2017 and maturing in 2026.

Gross current financial debt (excluding other non-bank payables corresponding to deferred payments for acquisitions) amounts to EUR 133.5 million (2020: EUR 186.6 million).

The current and non-current maturities of gross financial debt are distributed as follows:

Gross financial debt (in millions of EUR)

In 2021 financial debt had an average cost of 1.44% (2020: 1.29%), which means that it remains relatively stable compared to the 2020 financial year.

Net financial debt (excluding other non-bank borrowings corresponding to deferred payments for M&A) at 2021 year-end amounts to EUR 523.6 million (2020: EUR 538.2 million).

Below is a comparison of gross debt and net debt (excluding deferred payments for M&A) from 2020 and 2021:

Evolution of Groups' financial debt (in millions of EUR)

No significant changes are expected in 2021 in regard to the structure of own funds and capital or in regard to the relative cost of capital resources in relation to the financial year ended 31 December 2020.

The following table shows the maturities of the debt set out according to contractual obligations at 31 December 2021:

Millions of Euros	Less than 1 year	1 to 5 years	More than 5 years	TOTAL
Debentures and other negotiable securities	8.3	633.0	—	641.3
Bank borrowings	93.1	89.9	—	182.9
Credit accounts	4.3	—	—	4.3
Other payables	42.1	50.1	—	92.2
Payables to Group companies (Note 28)	74.1	—	—	74.1
Lease liabilities	29.0	74.7	22.0	125.7
Suppliers and other payables	363.2	—	—	363.2
	614.1	847.6	22.0	1,483.7

Future lease payment commitments amount to EUR 1.9 million (2020: EUR 1.7 million), and correspond mainly to contracts for business operating headquarters and operating vehicles (Note 27).

In Prosegur Cash we calculate its leverage ratio as the ratio resulting from net financial debt (excluding other non-bank borrowings

corresponding to deferred M&A payments) over total capital, the latter being the sum of net financial debt (excluding other nonbank borrowings corresponding to deferred M&A payments) and net equity from the Cash business. The ratio at 31 December 2021 is of 0.87 (2020: 0.87).

2.1.2.3. Analysis of contractual obligations and off balance sheet transactions

Note 27 of the Consolidated Annual Accounts includes the amounts of future minimum payments arising from operating lease contracts by maturity tranches.

Additionally, as indicated in Note 26 of the Consolidated Annual Accounts, Prosegur Cash issues third party guarantees of a commercial and financial nature. The total amount of guarantees issued at 31 December 2021 amounts to EUR 215.0 million (2020: EUR 293.9 million).

2.1.3. Alternative Performance Measures

In order to meet ESMA guidelines on Alternative Performance Measures (hereinafter, APMs), We present this additional information to enhance the comparability, reliability and understanding of its financial information.

The Company presents its profit/(loss) in accordance with International Financial Reporting Standards (IFRS-EU). However, Management considers that certain alternative performance measures provide additional useful financial information that should be taken into consideration when assessing its performance. Management also uses these APMs to make financial, operating and planning decisions, as well as to assess the Company's performance. We provide those APMs it deems appropriate and useful for users to make decisions and those we believe represent a true and fair view of its financial information.

APM	Definition and calculation	Purpose
Working capital	This is a finance measure that represents the operating liquidity available for the Company. Working capital is calculated as current assets less current liabilities plus deferred tax assets less deferred tax liabilities less non-current provisions.	Positive working capital is necessary to ensure that the Company can continue its operations and has sufficient funds to cover matured short-term debt as well as upcoming operating expenses. Working capital management consists of the management of inventories, payables and receivables and cash.
Capex	Capex (Capital Expenditure), is the expense that a company incurs in capital goods and that creates benefits for the company, whether through the acquisition of new fixed assets or by means of an increase in the value of fixed assets already in existence. Capex includes additions of property, plant and equipment as well as additions of computer software of the intangible assets.	Capex is an important indicator of the life cycle of a company at any given time. When the company grows rapidly, the Capex will be greater than fixed asset depreciations, which means that the value of the capital goods is increasing rapidly. On the other hand, when the Capex is similar to the depreciations or even less, it is a clear sign that the company is decapitalising and may be a symptom of its clear decline.
EBIT margin	The EBIT margin is calculated by dividing the operating profit/(loss) of the company by the total figure of revenue.	The EBIT margin provides the profitability obtained of the total revenue accrued.
Organic Growth	Organic growth is calculated as an increase or decrease of income between two periods adjusted by acquisitions and disinvestments and the exchange rate effect.	Organic growth provides the comparison between years of the growth of the revenue excluding the currency effect.
Inorganic Growth	The Company calculates inorganic growth for a period as the sum of the revenue of the companies acquired. The income from these companies is considered inorganic for 12 months following their acquisition date.	Inorganic growth provides the growth experienced by the company through new acquisitions or divestments.
Exchange rate effect	The Company calculates the exchange rate effect as the difference between the revenue for the current year less the revenue for the current year using the exchange rate of the previous year.	The exchange rate effect provides the impact of currencies on the revenue of the company.
Cash flow translation rate	The Company calculates the cash translation rate as the difference between EBITDA less the Capex on EBITDA.	The cash flow conversion rate provides the cash generation of the Company.

Net Financial Debt	The Company calculates financial debt as the sum of the current and non-current financial liabilities (including other payables corresponding to deferred M&A payments and financial liabilities with Group companies) minus cash and cash equivalents, minus current investments in group companies and minus other current financial assets.	The net debt provides the gross debt less cash in absolute terms of a company.
EBITA	EBITDA is calculated on the basis of the consolidated profit/(loss) for the period without including the profit/(loss) after taxes from discontinued operations, taxes on earnings, financial income or costs, or depreciations of Goodwill or the amortisation of intangible assets, but including the depreciation of computer software.	The EBITA provides an analysis of earnings before taxes, tax burden and amortisation of intangible assets.
EBITDA	EBITDA is calculated on the basis of the consolidated profit/(loss) for the period for a company, excluding earnings after taxes from discontinued operations, income taxes, financial income or costs, and amortisation expenses or depreciation on goodwill.	The purpose of the EBITDA is to obtain a fair view of what the company is earning or losing in the business itself. The EBITDA excludes variables not related to cash that may vary significantly from one company to another depending upon the accounting policies applied. Amortisation is a non monetary variable and thereof of limited interest for investors.

The reconciliation of Alternative Performance Measures is as follows:

Working capital (in millions of Euros)	31/12/2020	31/12/2021
Inventories	9.8	14.1
Clients and other receivables	275.3	280.2
Receivables with Prosegur Group	43.6	47.8
Current tax assets	54.0	48.7
Current financial assets	1.2	1.3
Cash and cash equivalents	401.8	250.8
Deferred tax assets	45.5	52.0
Suppliers and other payables	(326.9)	(363.2)
Current tax liabilities	(66.8)	(87.2)
Non-current financial liabilities	(186.6)	(133.5)
Payables with Prosegur Group	(79.5)	(74.1)
Other current liabilities	(8.8)	(7.7)
Deferred tax liabilities	(48.1)	(59.0)
Provisions	(116.7)	(127.0)
Total Working Capital	(2.3)	(156.7)

CAPEX (in millions of Euros)	31/12/2020	31/12/2021
Land and buildings (without decommissioning costs)	0.7	3.9
Technical installations and machinery	17.6	12.6
Other installations and furniture	10.5	9.4
Armoured vehicles and other property, plant and equipment	9.1	8.0
Advances and work in progress	28.0	25.7
Additions of property, plant and equipment	65.9	59.7
Additions of computer software	3.8	7.5
Adjusted CAPEX	69.7	67.2
Total CAPEX	69.7	67.2
EBIT margin (in millions of Euros)	31/12/2020	31/12/2021
EBIT	134.4	165.9
Revenue	1,507.5	1,518.8
EBIT margin	8.9 %	10.9 %
Organic Growth (in millions of Euros)	31/12/2020	31/12/2021
Revenue current year	1,507.5	1,518.8
Less: revenue previous year	1,798.7	1,507.5
Less: Inorganic Growth	28.8	2.5
Exchange rate effect	(321.5)	(96.9)
Total Organic Growth	1.5	105.7
Inorganic Growth (in millions of Euros)	31/12/2020	31/12/2021
Europe	(17.4)	(40.2)
AOA	8.3	3.2
LatAm	38.0	39.5
Total Inorganic Growth	28.8	2.5
Exchange Rate Effect (in millions of Euros)	31/12/2020	31/12/2021
Revenue current year	1,507.5	1,518.8
Less: Revenue from the year underway at the exchange rate of the previous year	1,829.0	1,615.7
Exchange rate effect	(321.5)	(96.9)
Cash Flow Translation Rate (in millions of Euro)	31/12/2020	31/12/2021
EBITDA		299.8
	272.4
CAPEX	69.7	67.2
Conversion Rate (EBITDA - CAPEX / EBITDA)	74.4 %	77.6 %

Net financial debt (In millions of Euros)	31/12/2020	31/12/2021
Financial liabilities	1,013.1	849.9
Plus: Financial debt from lease payments and others	79.5	84.2
Adjusted financial liabilities (A)	1,092.6	934.1
Non-bank borrowings with Group (B)	—	—
Cash and cash equivalents	(401.8)	(250.8)
Less: adjusted cash and cash equivalents (C)	(401.8)	(250.8)
Less: Own shares (D)	(18.7)	(11.4)
Total Net Financial Debt (A+B+C+D)	672.1	671.9
Less: other non-bank borrowings (E)	(72.2)	(72.3)
Plus: Own shares (F)	18.7	11.4
Less: Financial debt from lease payments (G)	(80.4)	(87.4)
Total Net Financial Debt (excluding other non-bank borrowings referring to deferred M&A payments and financial debt from lease payments) (A+B+C+D+E+F+G)	538.2	523.6
EBITA (in millions of Euros)	31/12/2020	31/12/2021
Consolidated profit/(loss) for the year	15.9	33.1
Income taxes	72.7	74.2
Net financial expenses	46.1	58.6
Depreciation and amortisation	50.3	39.1
EBITA	185.0	204.9
EBITDA (in millions of Euros)	31/12/2020	31/12/2021
Consolidated profit/(loss) for the year	15.9	33.1
Income taxes	72.7	74.2
Net financial expenses	46.1	58.6
Depreciation, amortisation and impairment	137.8	133.9
EBITDA	272.4	299.8

2.1.4. Important circumstances after the reporting period

At the date of formulation of these consolidated annual accounts, there are no significant events after the reporting date.

2.2. STOCK-MARKET RESULTS

'Development is more than a number', Amartya Sen, India, Nobel Prize for Economics.

2.2.1. Share evolution

Last year was characterised by a high volatility in the financial markets. On 31 December 2021, Prosegur Cash's share price closed at EUR 0.63, i.e. 22% lower than in the previous December. Nevertheless, during the first nine months of the year, the share price was varying in the support levels between EUR 0.80 and 0.70.

This evolution is also a much lower drop than that recorded (41%) during 2020. Without doubt, the share price was adversely affected in the last quarter due to the emergence of the Omicron variant and the doubts this has generated on business activity. A generalised trend in the stock markets and which is expected to be circumstantial.

On 31 December 2021 the Prosegur Cash's share price closed at EUR 0.63, after sustaining values close to EUR 0.80 during the first nine months of the year.

2.2.2. Geographical distribution of free float

The free-float capital of Prosegur Cash (excluding that controlled by the Prosegur Group and treasury stock) has a relevant presence of investors from different countries. The distribution according to nationality, in spite of the dominance of Spain and United States, is very varied.

2.2.3. Relative to investors

Prosegur Cash defends a clear orientation in its business strategy. Create value for shareholders, increase profits/(loss) and provide transparency. Apart from these qualities are our seriousness and credibility.

The Company's corporate website features the policy that governs its relationship with shareholders and investors, as approved by its Board of Directors. Our unwavering commitment: to promote open, effective communication with all shareholders. But most especially, at all times, clarity and coherence of the information we provide. The intention is to maintain transparent and regular contact with its shareholders so as to nurture mutual understanding of both parties.

Transparency is a priority. Prosegur Cash seeks to make that quality the identifying feature of all strategic and financial communications. An open, coherent space. Wherever possible, using language that is easy to understand and which, in turn, shows a true, balanced

and understandable view of the situation and prospects of the company.

As part of this open doors proposal, the company would like to receive comments and suggestions that contribute to its improvement. The path is clearly mapped out. Investors can address the company using the specific channels available on the web site and/or the facility known as the 'investor communication policy'.

Logically, 2021 has continued to be compromised, both in the social and the economic aspect, by the heavy impact of the pandemic. Despite this adverse scenario, Prosegur Cash, as part of its objective of holding meetings, even if they cannot be face-to-face, has replaced them by online meetings and gatherings. The outcome has been a level of contact with the shareholders and investors very similar to that of previous years.

Prosegur Cash presents its quarterly results via webcast hosted on its website. This is one of the ways for keeping the investment community properly informed. These presentations of results are led by the Chief Financial Officer, the Director of Investor Relations, and, when it is necessary to make an annual assessment, by the Managing Director.

On ESG, which is a key issue these days, Prosegur Cash continuously provides detailed information to any shareholders, private and institutional investors, stock market analysts and proxy advisors who request it. The road map has been drawn up following face-to-face meetings or by telephone. In fact, the company has responded to questions related to its Sustainability Policy, its commitment to the environment, labour relations and respect of human rights. So much so that Prosegur Cash has participated in the procedures required by the main ESG ratings for the elaboration of its reports.

Looking back, Prosegur Cash forms part of the FTSE4Good IBEX index since 2019. This indicator independently assesses and classifies the companies that best manage sustainability and meet Standards of Good Practice and Corporate Social Responsibility.

In 2021, Prosegur Cash contacted more than 190 investment funds and 22 research firms, and participated in 12 sectoral conferences.

2.2.4. Coverage of analysts and recommendations

The number of analysts who cover and regularly inform on the company went up during 2021. To be specific, there are 14 firms that punctually follow the activity of Prosegur Cash.

2.2.5. Main shareholders

The shareholding structure of Prosegur Cash reflects its solidity and stability. At 31 December 2021, 79.28% of the company capital belonged directly or indirectly to Prosegur, 1.19% were own shares and the remaining 19.53% was free float.

This shareholding arrangement allows the Board of Directors to be the management body to define the strategic lines and take decisions in line with the interests of all its shareholders. A solid and stable shareholder base brings enormous advantages. Because as it is made up of important shareholders and institutional investors, it creates the ideal conditions for Prosegur Cash to develop its project and achieve its objectives.

Risk management

3. RISK MANAGEMENT

'It is very easy to complicate things, what is truly difficult is to simplify them', Friedrich Nietzsche, Germany, philosopher.

3.1. MANAGEMENT SYSTEM

Prosegur Cash is a complex, diversified organisation operating in 20 countries on four continents, and as such it is exposed to numerous risk factors associated with the nature of each of those markets. As befits the status of a global leader in the cash business, we have a new Risk Control and Management Policy with the following missions:

• ^J It acts as a regulatory framework throughout the organisation, defines the basic principles and management and control model, the various types of risk and control level in each case, as well as the competencies and responsibilities of the governance structure.
• ^J It seeks to ensure sustained stability and financial soundness.
• ^J It defends the interests of shareholders, clients, employees and other stakeholders.
• ^J It has its own Risk Management System, designed and adapted to corporate and client needs.
• ^J It identifies threats proactively and under changing contexts to eliminate and mitigate their impact on company goals.
• ^J It analyses its most critical aspects and implements measures based on key indicators capable of reducing the probability of the occurrence of those risks.
• ^J It applies a comprehensive, continuous,

capillary and consolidated management model in each activity, department, subsidiary, geographical area and support area.

• ^J This system is based on the COSO standard (Committee of Sponsoring Organizations of the Treadway Commission) and works together with other standards such as Basel III or ISO 31000 standard.
• ^J Since we work for a broad group of clients, our system also manages risks in their name.

Transversal liability and corporate governance

One of the principles of this new Policy is its transversal management. This is not construed as a task exclusive to senior management, but is instead a joint mission in which the entire staff shares responsibility. This is why it involves all employees in the risk management culture and encourages them to actively participate in its control.

This does not prevent the company's governing structure from being fully invested in that same mission. In fact, Prosegur Cash's Board of Directors is entrusted with responsibility for determining the general strategies and ensuring their compliance, and also delegates responsibility to the Audit Committee to report, advise, propose initiatives and supervise the operation of the Risk Committee (Control and

Management Unit), through its Internal Audit Department.

This Risk Committee ensures the proper functioning of the systems that identify, quantify and manage the most significant risks for the company, while also participating in preparing the strategy and decision-making to implement it.

As befits that transversal approach, the head of each business and support unit assumes the management of those risks directly involved in their area, prepares a plan for intervention, control, mitigation and monitoring, and provides all staff with relevant information to contribute toward those objectives.

Prosegur Cash Risk Management Cycle

3.2. MAP AND CATEGORY OF THREATS

The risks correspond to a broad range of factors related to changing circumstances in diverse scenarios and markets. Therefore the ability to calculate the likelihood of their occurrence, their potential impact on each activity and the appropriate responses depends on accurately classifying them thanks to an internal tool that identifies them on a risk map that is updated each year with standard and consolidated information.

This system currently identifies six different types of risks:

^J Strategic risks, may compromise the company's main objectives, hence we manage them proactively with priority over all others.

• ^J Operational risks, related to the organisation's operational management.
• ^J Reporting risks, affect the information reported to the company itself or to third parties.
• ^J Those that affect internal or external regulatory compliance vis-à-vis third parties.
• ^J Cybersecurity risks for IT systems and data management.
• ^J Risks that affect ESG standards: environmental, social and good corporate good governance.

We consider strategic risks to be those that may compromise the company's main objectives and that therefore require priority and proactive action.

3.2.1. Operational and business risks

These refer to factors such as concentration processes in the financial sector that cause falls in the use of cash, drops in demand for security services or expense containment policies in private companies, in addition to external hold-ups during cash-in-transit and even fraud attempts within the organisation. By nature, Prosegur Cash's operations are performed in competitive sectors and markets, with price pressures and relatively high entry barriers.

This scenario prevents us from ever lowering our guard and to apply continuous management by audits of valuables in custody, operating controls, installation security, remote monitoring of the close of daily accounting entries for all branches and, of course, compliance with the specific regulations of each market. Together with the internal control measures, we have external insurance schemes that contribute toward minimising the impact on the income statement.

Probability and impact of risks of fraud

To decrease the potential damage to the business, the Prosegur Group as a whole has a Global Risk Management Directorate that provides tools with which to resolve contingencies associated with operational security, maintain the procedures defined by the company and ensure compliance with local regulations.

It is structured among three departments with regional and national representation:

• ^J The Security department acts as a second level of defence, manages the risks and legal standards and takes part in the development and execution of security operations.
• ^J The Intervention department combines in situ reviews of the operations, such as audits of valuables in custody, operating controls and security of the installations or compliance with regulations. It

monitors the daily accounting entries for all branches, thus keeping losses in the Prosegur Cash activity to a minimum, and manages special procurement and fleet audits, among others. During 2021 this department was reinforced by incorporating techniques and tools based on machine learning and artificial intelligence, and new fraud control tools.

^J Lastly, the Insurance department identifies and controls operating risks in its area, arranges insurance schemes, signs corporate and local policies with top-rated insurance companies and provides cover for a broad range or risks, from direct and indirect employees related to the company's activity or its property, plant and equipment. It also manages a credit insurance programme for protection from possible unpaid invoices.

3.2.2. Financial risks

These are among the strategic risks and their management is entrusted to the Financial Department with the back-up of other company units. It is broken down into the following specific categories:

Interest rate

Related to monetary assets and liabilities on the balance sheet of Prosegur Cash. To monitor them we carry out a dynamic analysis of our exposure to fluctuating rates and simulation of scenarios which take into, consideration refinancing, the renewal of current positions at any given time, alternative financing and hedging. On the basis of each scenario, we calculate the effect on the profit/(loss) of a specific variation of the interest rate.

The different simulations use the same variation in the interest rate for all currencies and they are only performed on liabilities that represent the most significant positions subject to variable interest. In 2021 our financial liabilities at floating rates were mainly denominated in Euros and Australian Dollars.

Additionally, our debt includes the issue of a simple bond and fixed rate bank borrowings. We also hold credit accounts and fixed interest bank borrowings in Chile, Peru, Argentina, Colombia, Brazil, Ecuador and The Philippines. At 31 December 2021, had interest rates on bank loans and borrowings been 100 basis points higher, with the other variables remaining constant, post-tax profit would have been EUR 507 thousand lower (2020: EUR 1,292 thousand lower), mainly as a result of higher interest expense on variable rate loans.

Exchange rate risk

The natural coverage made by Prosegur Cash is based on the capital expenditure requirements being in line with the operating cash flow generated and the feasibility of regulating the pace of investment made in each country based on operating requirements.

Foreign currency operations - which are inherent to our international expansion - expose us to this type of risk associated to future trade transactions, equity investments, profit/(loss) from operating activities and financial positions when these factors are denominated in a foreign currency other than the functional currency of each of the Prosegur Cash companies.

To control exchange rate risk as far as possible, we use instruments that balance and neutralise the risks associated with the monetary in- and outflows of assets and liabilities, taking market expectations into consideration. We also use the strategy of not hedging the equity investments in those countries, in this way assuming the risk relating to the translation to Euros of the assets and liabilities denominated in those foreign currencies.

Credit risk

In our business we are not significantly exposed to credit risk and the percentage of defaults in payment is of no great relevance. If clients have been classified individually, those ratings are used; otherwise, our credit control department assesses the client's credit rating on the basis of its financial position, past experience or the impairment for credit risk based on the expected loss, amongst other factors. The individual credit limits are in line with those established by the Financial Department and consistent with internal and external ratings.

We also use methods for detecting objective evidence of impairment on trade receivables and, as a result, to identify any delays in payment deadlines and establish the impairment loss based on the individualised analysis for each business area. The value impairment of receivables from commercial clients as of 31 December 2021 amounts to EUR 12,773 thousand (2020: EUR 8,079 thousand).

In Spain, the Collections Department manages an approximate monthly volume of 3,490 clients with monthly average turnover of EUR 3,936 per client.

Liquidity risk

To ensure prudent management of this risk we hold a certain amount of cash and marketable securities, as well as sufficient short-, mediumand long-term financing through credit facilities to assure our business targets. The Financial Department supervises the company's liquidity reserve forecasts, which comprise credit drawdowns and available cash and cash equivalents, based on expected cash flows.

Prosegur Cash's liquidity position for 2021 and 2020 is based on the following:

Cash and cash equivalents of EUR 250,804 thousand at 31 December 2021 (2020: EUR 401,773 thousand).

EUR 479,930 thousand available in undrawn credit facilities at 31 December 2021 (2020: EUR 274,199 thousand).

Cash flows from operating activities in 2021 amounted to EUR 241,071 thousand (2020: EUR 237,373 thousand).

Lastly, we prepare systematic forecasts on cash generation and requirements that make it possible to determine and continuously monitor the liquidity position.

Capital risk

Our management strategy against this key factor is to safeguard our ability to generate a return to shareholders and profits for other holders of equity instruments, in addition to maintaining and adjusting an optimum capital structure and reducing the costs of this. In this latter aspect, Prosegur Cash can adjust the amount of dividends payable, reimburse capital to shareholders, issue new shares or dispose of assets to reduce debt.

In line with habitual practice in the sector, we keep track of capital in accordance with the leverage ratio - net financial debt divided by total capital - with the aim of streamlining our financial structure.

Prosegur calculates net financial debt with the total current and non-current financial liabilities (excluding other non-bank payables) plus/minus net derivative financial instruments, minus cash and cash equivalents, and minus other current financial assets. And the formula for calculating total capital is equity plus net financial debt.

Counterparty risk limits

Financial investments and other operations are carried out with defined rating entities and financial transaction framework agreements are entered into (CMOF or ISDA). The counterparty risk limits are clearly defined in the corporate policies of the Financial Department and updated credit limits and levels are periodically published.

3.2.3. Other potential risks

Given their economic significance, Prosegur Cash's services are particularly subject to regulation: licences that must be renewed periodically, permits to develop services, weapon use and control or employee training certificates, in addition to legislation on employment and social security, prevention of money laundering, data privacy and protection or reporting of information on various activities.

That binding legislation doubles if we consider that strategic clients such as financial institutions are likewise subject to regulations with a potential impact on Prosegur Cash's activity and results.

Typical changes to regulations may triple the risk: additional investments for adaptation to those changes, increased competition for Prosegur Cash if those regulatory requirements ease and possible financial penalties or permit revocations deriving from breach. Hence the company's constant effort to ensure compliance with the laws of all countries by identifying transactions, regularly assessing the control environment and continuously monitoring controls.

The local Business Divisions play a decisive role in this mission with knowledge of the reality on the ground that allows them to assess any deviation from tolerance levels at the operational control level in the control of operations, security and regulatory compliance.

Client concentration

Prosegur Cash does not have significant concentrations of clients. In this respect, Note 29.1 of the Consolidated Annual Accounts points to the following data on the representativity of the main clients over the overall turnover:

Technology and cyber security

Prosegur Cash's digital transformation is among the most intense of its sector. We therefore expedite the development of ICT infrastructures (Information and Communication Technologies) and the technological dependence of our operations on these; for example, the cash-intransit and cash management services.

To this regard, problems such as telecommunication system insufficiency, disruption to applications or outside intrusions in the systems may halt serviceability or even pose a threat to business continuity, at significant costs for returning to normal. Furthermore, in our day-to-day operations we process and store increasing amounts of sensitive information, from business and operational data to the private information of clients and employees. Any company is obligated to protect its systems against the accelerated increase in cyberattacks, but even further in the case of a security specialist. Therefore, in order to prevent litigation and damages to financial results and

our company's reputation, we shield our systems and those of our clients from attacks, sabotage, computer viruses, data loss and human error.

On many fronts: we have a CISO (Chief Information Security Officer), we report the security policy directly to the Board of Directors, we apply a hybrid perspective between the technical and risk management adapted to the Cash business and base ourselves on the NIST framework (National Institute of Standards and Technology) to improve all functions, particularly those that relate to protection, detection and recovery.

Our strategy focuses on:

• ^J Identifying and protecting all our physical and digital assets, as well as the information they manage.
• ^J Detecting and responding to any information security event (attacks, regulatory breaches, etc.) to mitigate their impact and prevent them from spreading.
• ^J Recovering technological and/or operational services following disruptive events or those that may affect the normal course of business.

With this strategy and guidelines, the department seeks the following objectives:

• ^J Confidentiality, ensuring that the information is not placed at the disposal of or disclosed to unauthorised individuals, entities or processes.
• ^J Integrity, protecting the accuracy and completeness of the information and processing methods.
• ^J Availability, ensuring that the information is accessible and usable when required by an authorised individual, entity or process.
• ^J Authenticity, ensuring that an entity is what it claims to be, which may be data, users or assets.
• ^J Non-repudiation, ensuring the ability to prove the occurrence of an event or transaction and involvement of entities in it (which may be data, users or assets).
• ^J Traceability, ensuring that all actions on information or an asset may be traced and that these actions may be unequivocally associated with an individual or entity.

We do not consider people the weakest link but as the last line of defence. This is why we promote the awareness and training of all employees by courses in Prosegur Corporate University, which have been completed by over 90% of new recruits, and massive practical advice campaigns or phishing simulations to train the staff from personal experience.

Brand reputation risk

Our company's success depends on its good name, on the trust that the quality of its services and the integrity of its employees kindled among clients. In a business as sensitive as the security of goods and individuals, credibility earned over time may be lost in a single incident, whether real or perceived, and may impact an ethical, responsible and secure work model. Any breach of stakeholder expectations may undermine that prestige.

Therefore, by deeming the management of any incidents that pose a threat to our brand value as critical, we have incorporated management and control principles in our Corporate Compliance Programme, including independent processes of due diligence and the detection of irregular situations from an ethical viewpoint.

Environmental

Any breach of environmental regulations may lead to penalties, financial loss or a negative perception of Prosegur Cash.

While environmental risk cannot be classified as strategic given its low impact of our company, we are going to reduce our environmental footprint even more by adopting the ISO 14001 standard for an effective management system and continual improvement. Not just for objective control issues and regulatory compliance, but for ethical responsibility to address the challenges of climate change.

We measure, evaluate and reduce the environmental impact associated with our activity, we establish specific objectives adapted to local legislations and we extend this risk reduction to suppliers and subcontractors by means of compliance commitments.

Corruption and fraud related

Not only may these have a negative impact on Prosegur Cash's financial health and reputation, but if they reach a sufficient level, they may impair development, infringe on free competition and even weaken the social order and political stability of entire nations.

In facing these risks, we have developed a solid programme with control and management policies and procedures. Its objective is preventive or at least quick reaction: it tries to deter or detect early any activity that might be suspected as corruption or fraud by employees, administrators, shareholders, clients, suppliers or third parties who act dishonestly.

Political

Political instability can trigger a dangerous domino effect in other spheres: from economic crises to the growth of crime or social conflicts that threaten the security of goods and people. In other words, these may lead to increased operating costs, commercial and financial losses and even to the close of our activities.

The prevention of this scenario, or even of partial aspects that may lead to it, implies an analysis of the political circumstances connected with the social and economic, in addition to continuous monitoring of emerging risks.

We have developed an internal system to deter or detect early activity that might be suspected as corruption or fraud.

3.3. GLOBAL RISK ENVIRONMENT

Given the high incidence of COVID-19, the environment in which Prosegur Cash operates continues to be far from fully normal, despite progress in terms of vaccination programmes and the progressive reactivation of economies.

Despite a favourable evolution along general lines, the return to normal is taking place unevenly between some markets and others. As the World Bank states in its Global Economic Prospects document, 'in many emerging market and developing economies, vaccination difficulties continue to affect activity', added to the 'impact of the various COVID-19 waves and strains'.

With respect to the countries where Prosegur Cash operates, the International Monetary Fund forecasts firm recovery prospects in Europe, the United States, Asia and Oceania.

In LatAm, one group of countries which includes Chile, Brazil and Peru, is on the way to achieving GDP levels similar to pre-pandemic levels while others, such as Argentina or Colombia, indicate a slower recovery.

IMF analyses suggest that the recovery prospects for most of the markets in which Prosegur Cash operates are generally solid.

3.4. CONTINGENCY PLANS AGAINST THE CRISIS

To develop our activities within the context of a pandemic puts all teams to the test, particularly those that must necessarily work on-site. However, their excellent response helps us to recover the path of organic growth in all regions, and to develop the new Strategic Plan, likewise thanks to the constant monitoring of the global environment in which we work.

In line with the capabilities we deployed in 2020, during 2021 we constantly analysed the pandemic's evolution and its impact on our operations as well as on employees, clients and suppliers. In response, we have adapted the action protocols to each market in keeping with the recommendations of health and administrative authorities.

For example, we created a multidisciplinary team of senior managers to apply the most appropriate measures at any given time to ensure the safety and health of all our employees, maintain the quality of client service and implement any suggestions and indications from the authorities against the spread of the virus.

Responsible management

4. RESPONSIBLE MANAGEMENT

'Let everyone sweep in front of his own door, and the whole world will be clean', Johann Wolfgang von Goethe, Germany, author.

In Prosegur Cash we are aware that our leadership in the logistics and cash management sector implies a series of social, ethical and environmental demands. Among them, we especially assume the commitment to sustainability, the generation of decent and stable employment, the health and safety of our professional teams, scrupulous regulatory compliance and good governance and, of course, non-negotiable respect for human rights.

In 2021, we have taken a further step in fully assuming our corporate responsibility by including ESG (environmental, social and governance) criteria in the company's business model, the new compass that guides our activities. From this, within our 3P management system, a series of internal rules, procedures and criteria are derived for the provision of services that permeate the entire organisational structure of Prosegur Cash:

ESG criteria (environmental, social and governance) forms an integral part of our business model.

• ^J Sustainability Policy
• ^J Environmental Policy.
• ^J Human Rights policy.
• ^J General Regulation Concerning Employee Complaints for Discrimination and Harassment.
• ^J Occupational Health and Safety Policy.
• ^J Inclusive Growth and Diversity Policy.
• ^J Work Conditions and Social Dialogue Policy.
• ^J Purchasing Policy.
• ^J General Conditions of Purchase.
• ^J Corporate Governance Policy.
• ^J Regulation of the Shareholders General Meeting.
• ^J Regulation of the Board of Directors.
• ^J Regulation of the Committee for Sustainability, Corporate Governance, Appointments and Remuneration.
• ^J Auditing Committee Regulation.
• ^J Policy for the Selection of Candidates as company directors.
• ^J Policy for Remuneration of members of the board of directors.

• ^J Internal Code of Conduct on matters relating to securities markets.
• ^J Dividend Policy.
• ^J External Communication Policy.
• ^J Investor Communication Policy.
• ^J Code of Ethics and Conduct.
• ^J Ethics Channel Policy.
• ^J Tax Strategy.

Main alliances

In the task of raising the standards of responsible behaviour in our sector and turning the world into a fairer, more supportive, resilient and greener place, Prosegur Cash is finding accomplices and powerful allies such as the International Security League, the organisation that brings together leading private security companies, present in 120 countries and gathering a total of more than two million professionals.

As of 2002 the Prosegur Group, and Prosegur Cash as well, is one of the 13,000 signatories to the world's largest responsible business initiative, the United Nations Global Compact. The Compact includes ten principles related to active respect for human rights, dignity of working conditions, preservation of the environment and the fight against corruption. This complete ethical programme includes, among other commitments, the abolition of any type of child labour, full freedom of association and trade unions, the promotion of clean technologies and the rejection and denunciation of corrupt practices such as extortion and bribery.

Other alliances related to the promotion of responsible management goals include the adherence to The Climate Pledge and Foretica, as defined in section (1.1.1.) on Values of this corporate report. In the words of Germán Granda, General Director of Foretica: 'the

incorporation the Prosegur Group into our network of more than 200 partners is a concrete commitment to the path outlined by Forética in sustainability, focused on three axes: increasing business ambition, accelerating action and promoting alliances that allow us to respond to the environmental, social and good governance challenges that we urgently need to address'.

True to its transparency commitment, Prosegur Cash is present in some of the most internationally recognised sustainability indices.

Presence in indices and ratings of sustainability and good governance

In Prosegur Cash we also assume that a mere statement of intent is never enough. Good intentions must be endorsed with concrete actions, and these actions must be supervised and validated by independent observers. That is why our company, true to its commitment to transparency, is present in some of the most internationally recognised sustainability indices and ratings and maintains a fluid relationship with the most relevant stakeholders.

These are the main indices that gauge our corporate commitment to sustainability:

^J The S&P Global Corporate Sustainability Assessment (CSA). For the first time, in 2021 we presented the questionnaires to participate in the corporate sustainability assessment of the world's leading provider of credit ratings, market analysis and benchmarks.

• ^J Carbon Disclosure Project (CDP). In 2021, we also disclosed our environmental impact for the first time through the system managed by this non-profit organisation. CDP offers logistic support to companies and institutions that want to make progress in areas such as the fight against climate change, water security and deforestation.
• ^J FTSE4Good. Prosegur Cash forms part of this index that identifies those companies with the best corporate social responsibility policies on the planet.
• ^J AENOR Good Corporate Governance Index. Finally, and as announced in the section on Values of this report, Prosegur Cash is one of the first companies to receive the Good Corporate Governance Index certification issued by AENOR, which we consider an independent assessment of the success of our commitment to a responsible, profitable and sustainable business model. The

company achieved the maximum rating of G++.

• ^J Ibex Gender Equality Index. Prosegur Cash was included in the companies listed in the Ibex Gender Equality Index. This is the first index that measures the presence of women in management positions in Spanish companies.
• ^J Sustainalytics. Prosegur Cash achieved the rating of Low Risk company in the corporate governance and ESG analysis index offered by this prestigious research company.
• ^J MSCI. We continue to work with MSCI, with which we have maintained a relationship for almost 10 years. MSCI measures a company's resistance to significant long-term environmental, social and governance risks (ESG) of the industry by measuring the exposure to those risks and how they are managed.

4.1. COMMITMENT TO SUSTAINABLE DEVELOPMENT

Actions based on solid principles generate true value. In Prosegur Cash, we believe in the need for our actions to have a positive impact on society in general and the communities in which we are present as well as among our employees, partners, clients, suppliers or institutions with which we collaborate.

From the point of view of sustainability, the framework that provides this vision of value creation is that of environmental, social and governance criteria as an inseparable part of the way we operate our business, in which these three individual elements are also intertwined.

Much of this positive impact comes from drawing up and implementing a sustainable development strategy, because few actions guided by ethical responsibility are right now as important as contributing to the good health and long-term future of the planet. Our company has a strategy and a non-negotiable plan that is based on the following pillars:

• ^J A wide range of sustainable services. Because being competitive is not incompatible with environmental responsibility, Prosegur Cash makes automated cash management services available to its clients, without associated increases in emissions. We also encourage both the suppliers we work with and require the raw materials we use to meet the highest standards in ethics, transparency, human rights, labour relations and environmental commitment.
• ^J Cost reduction. Not understood as a simple saving and expansion of the profit margin, but as an efficient management model based on the concept of circular economy. A clear example can be found in the design, production and management of our uniforms, in which criteria are applied to extend their useful life and facilitate the recycling of garments, drastically limiting the generation of waste.
• ^J Increased productivity through efficient labour management. This point involves the creation of a motivating environment that fosters and stimulates the development and talent of our workforce. Approximately 45,000 professionals who deserve

fair remuneration, promotion and professional development possibilities, and options to optimally balance work and family life.

• ^J The improvement of investment decisions. More than ever, Prosegur Cash investments must be sustainable, not cause environmental, social or governance damage and contribute to a sustainable transformation of the business.
• ^J Pioneers in sustainable mobility. In 2020, Prosegur Cash presented the world's first fully electric armoured vehicle in Germany. We have also developed the first armoured units with hybrid engines, one way in which we continue to explore new possibilities alongside specialist partners. The goal is to advance in the plan for the hybridisation and electrification of the fleet.
• ^J Alignment with the new regulatory environment. Legal frameworks, both nationally and transnationally, are changing to better reflect new commitments and concerns. Prosegur Cash includes both this legal evolution and the new recommendations and standards in labour, environmental and governance matters.

4.1.1. Sustainability Governance

In line with its new commitments and the evolution of its business model, Prosegur Cash has equipped itself with a renewed internal structure. At the top, as the highest decisionmaking body, except in matters of exclusive competence of the Shareholders General Meeting, remains the Board of Directors.

The Sustainability, Corporate Governance and Appointments and Remuneration Committee has the task of periodically evaluating and reviewing our environmental and social policy without

ever losing sight of social interest and the United Nations Sustainable Development Goals and making them compatible, as appropriate, with the legitimate interests of the other stakeholders. The Committee is also responsible for supervising compliance with the corporate governance rules and internal codes of conduct in force in the company, also ensuring the consolidation of a corporate culture fully in tune with Prosegur Cash valuesand purposes.

In turn, the Audit Committee is responsible for supervising the process for preparing and submitting the necessary financial information and presenting recommendations or proposals to the governing body aimed at safeguarding its integrity.

The organisational framework in this area is completed by the Sustainability Committee and the Global Sustainability Department. The first, led by members of the Management Committee, defines objectives and action plans. And the second, reporting to the Senior Management, is a transversal department that coordinates

and supervises the operation of all areas in environmental, social and corporate governance aspects.

The sustainability governance model at Prosegur Cash promotes a business model that seeks to respond to the needs and demands of our environment.

4.1.2. Sustainability Policy

The company's Board of Directors on 27 October approved an update of our principles and general bases of sustainable development. The new conceptual framework strengthens sustainability as one of Prosegur Cash's basic values, with the Sustainable Development Goals as its guiding principle and in full compliance with Recommendation 55 of the Code of Good Governance of Listed Companies, approved in Spain by the National Stock Market Commission (CNMV) in 2015 and updated in June 2020.

This Sustainability Policy permeates our entire corporate structure and admits no exceptions. Its application is non-negotiable in all Prosegur Cash activities and in all those countries in which the company is present. All those contracted companies that act on behalf of the firm should also adhere to it, such as joint ventures, temporary joint ventures and other, equivalent undertakings.

4.1.3. Sustainability Master Plan

Another important development in our company in 2021 was the approval of the Sustainability Master Plan, a detailed action guide that includes 63 specific initiatives in four areas: Environment, People, Safe Work, and Ethics, Transparency and Governance.

Each of these areas in turn encompasses five pillars with initiatives and objectives to be pursued during the term of the Strategic Plan 21-23. The principles by which the Master Plan is governed are detailed below.

Environmental issues

On this point, there is no room for reluctance or ambiguity: the preservation of the ecological environment is one of the fundamental challenges of our time, and any company that is willing to assume its corporate responsibilities must first commit itself to this objective. At Prosegur Cash, we wanted to go beyond the new laws and regulations that are being implemented at international level and stick as strictly as

necessary to an internal plan for optimising resources and reducing environmental impacts.

The transition to a circular economy, waste reduction and accelerated decarbonisation are key priorities in our Master Plan. The long-term goal is to achieve carbon neutrality by 2040. To get closer to that horizon, we have assigned ourselves a series of partial objectives for the period of the Strategic Plan 21-23.

OUTSTANDING STRATEGIC OBJECTIVES

• ^J To increase the penetration of New Products within the Prosegur Group perimeter that produce less greenhouse gas emissions, achieving a percentage of 21.6% by 2021, 23.2% by 2022 and 25.2% by 2023.
• ^J Use of 50% of renewable energies within the Prosegur Group perimeter.
• ^J 100% efficient lighting and a 5% reduction in electricity consumption before the end of 2023.
• ^J A 3% decrease in consumption per kilometre/year.
• ^J Management of 85% of the waste by certified suppliers within the Prosegur Group perimeter.
• ^J 20% reduction in the use of plastics, paper and toner.

People

Our team is our most valuable asset. With a workforce of approximately 45,000 people, the top priority consists of creating a safe working, motivating, equal, diverse environment and that promotes a commitment to Prosegur Cash's values.

We know that having a workforce like ours is our main competitive advantage and the key to being a sustainable company. We manage this enormous wealth by committing to equal opportunities; we offer work-life balance possibilities and a complete training and

development programme, and we strive to attract and retain talent.

In Prosegur Cash we are also conscious of the fact that the nature of our activities (securities, cash or other high-price objects logistics) and the characteristics of some of the environments in which we operate may leave our staff open to risks and threats to their safety and integrity.

In these cases, Prosegur Cash acts with a zero tolerance policy towards Human Rights violations and analyses each specific case in depth to take the necessary measures. To take stock of our actions in this specific area, we have internally systematised the Due Diligence process on Human Rights and established an external review every three years.

Regarding inclusive contracting and promotion of diversity, at Prosegur Cash we have brought a significant number of people with disabilities into our workforce, to whom we offer a better future through decent employment.

Another of Prosegur Cash's essential goals is to gradually achieve a balance between men and women in our staff. This is a process that has been underway for years and that has allowed us to rely on a percentage of women, in the Prosegur Group overall, that is above average

in the private security sector. In the period of our current Strategic Plan, we have proposed to increase the presence of women in positions of responsibility in the company by five points.

All this commitment to people has the ongoing training of our teams as an essential lever. The Prosegur Group's medium-term goal is to increase the online educational offer by 10% and ensure that the training modules, whether face-to-face or digital, reach 90% of our workforce. In 2021 we provided all employees in the organisation structure with mandatory training on sustainability, a fundamental topic of increasing importance for us.

Another main focal point is to train our staff in the technological transformation process on which Prosegur Cash has embarked. We thus reduce the effects of the digital divide as much as possible and ensure that no one is left behind.

OUTSTANDING STRATEGIC OBJECTIVES

• ^J Increase representation by women in positions of responsibility, management and leadership within the Prosegur Group perimeter by five points.
• ^J Inclusion of people with disabilities, until they account for 10% of the workforce in the information technology area.
• ^J Increase hours of on-line training by 10% on topics that are specific to Prosegur Group professionals, among which health and safety and human rights are worthy of emphasis.
• ^J 90% of Prosegur Group employees will receive face-to-face or online training each year, aimed at their professional development or recycling.

Safe work

The commitment to create safe environments for all starts with our employees. Caring for and protecting those who care for and protect is one of Prosegur Cash's essential concerns. This extends to all collaborators and suppliers, regardless of their relationship with the company.

Our management system focuses on the ongoing improvement of our processes, which makes it possible to increase the security level of our facilities and the jobs of our employees.

We will always aspire to decrease accidents to zero. To do so, each year we will establish specific objectives and monitor them continuously according to the line defined in our Master Plan. The goals in 2021 revolved around reducing the incidence, i.e., the number of accidents based on the number of employees. In this sense, while the objective was to reduce this index by 2 points, we achieved 1.3%, which, however, has been translated into a 12.5% decrease in minor accidents and 16% in serious.

As a complement to all this, Prosegur Cash takes its commitment to health both in and out of the workplace to the promotion of healthy habits among our employees to maintain an adequate state of physical and mental fitness. And an always urgent need, with our road safety campaign aimed at reducing traffic accidents.

OUTSTANDING STRATEGIC OBJECTIVES

• ^J Update of the Global Occupational Health and Safety Policy.
• ^J Holding quarterly management meetings to monitor the main Occupational Health and Safety indicators.
• ^J Development of a road safety campaign.
• ^J Promotion of healthy habits.

Ethics, transparency and governance

We must forcefully state: Prosegur Cash always acts with integrity, full respect for the law and principles guided by ethical responsibility in all the countries in which it is present. This is an essential element of our corporate identity and the best guarantee for our employees, suppliers, contractors and business partners.

To reinforce these commitments, in 2021 we endowed ourselves with a Sustainability Committee comprising all members of Senior Management. This new body ensures that our values and purposes in terms of sustainability and risk control are translated into scrupulous and consistent actions as a preliminary

step to supervision by the Sustainability, Corporate Governance and Appointments and Remuneration Committee.

During the previous year, we offered specific training to our staff on legal, regulatory and international operating issues, as well as on the ethical principles that inspire us. In this way, we hope that they fully understand and internalise Prosegur Cash's values and help prevent cases of corruption, fraud or bad practices from occurring. We also place an Ethics Channel at their disposal for anonymous whistleblowing.

Lastly, we have launched an Internal Control System for Non-Financial Information the objective of which is to identify associated risks and implement controls that guarantee that the information reported to the company's management bodies is accurate and complete and that it meets our standards.

OUTSTANDING STRATEGIC OBJECTIVES

• ^J Creation and updating of the internal regulatory framework for sustainability.
• ^J Updating of the Code of Ethics and Conduct.
• ^J Monitoring of 100% of the complaints filed through the Ethics Channel.
• ^J Implementation of a supplier risk monitoring, approval and assessment system.

4.1.4. Commitment to Sustainable Development Goals (SDG)

On 25 September 2015, world leaders from 193 member states of the United Nations adopted 17 Sustainable Development Goals (SDGs). The aim was to work for the present, but also for the future: to protect the planet, fight against poverty and build a fairer, more sustainable and prosperous world for future generations.

All these challenges found their space in the framework of the 2030 Agenda on sustainable development. These are challenges that call for action by States, civil society and companies in particular. Within each objective, different goals are set, each with its own indicators, green or red lights that serve to determine whether the objective is met or not.

At Prosegur Cash, we interpret the SDGs as an opportunity to deepen our company's social and ethical commitment. We have therefore brought them into our strategy and our business plan. They form a decisive part of our roadmap to contribute to a more sustainable society.

The algebra is simple, but ambitious. Our company works directly on the ten objectives that are closest to our sphere of activities and in which we believe it is more feasible to achieve results that make a difference.

Listing them is easy, but making them reality is a formidable challenge:

• ^J SDG 3: Health & Well-being.
• ^J SDG 4: Quality education.
• ^J SDG 5: Gender equality.
• ^J SDG 7: Affordable and non-polluting energy.
• ^J SDG 8: Decent work and economic growth.
• ^J SDG 9: Industry, innovation and infrastructure.
• ^J SDG 12: Production and responsible consumption.
• ^J SDG 13: Climate action.
• ^J SDG 16: Peace, justice and solid institutions.
• ^J SDG 17: Alliances to achieve objectives.

At Prosegur Cash, we know that this commitment will be a firm guide that will permeate our daily action in the coming years.

SDG 3: Health & Well-being

In this specific area of action, we still hope to reduce the accident rate to zero. To do so we have designed a complete shock plan that includes pre-defining the goals, specific quantitative as well as qualitative ones.

In addition to the objective of reducing the incidence of occupational accidents, from a qualitative perspective the focus has been on preventing traffic accidents, the main cause of serious accidents in the company, with measures such as the successful road safety campaign carried out throughout the month of June with more than 11,000 participants.

These actions and the accident data are followed up on in a triple way. First of all, by our expert local teams. And secondly, in the quarterly health and safety committees developed by the corporate team, which are led by the Managing Director.

In 2021, this objective was reinforced with the creation of the Health and Safety Expert Groups. It is the sum of professionals on this field from the various countries in which it is present, including Prosegur Cash among other areas of company activity. Its purpose is to identify trends and needs and implement a policy of best practices.

SDG 4: Quality education

In an environment as competitive as ours, the training and qualification of workers is one of the best ways to make a difference. At Prosegur Cash, we commit firmly to the talent and the professional development of our employees. They are the pillars of the company. And today, the updating of knowledge comes in different ways. This structure allows workers to move up in their careers, improve the performance of their duties and increase their job visibility. In real terms, total training provided in 2021 amounted to more than 721,000 hours, representing an average of 17 hours per employee.

Of course, today's society cannot be understood without online learning. Prosegur Cash has a global digital platform, the Prosegur Corporate University, a virtual space to acquire knowledge, live out the company's values and develop talent through a common culture. A total of 382,000 training hours were provided during the year.

SDG 5: Gender equality

At Prosegur Cash we are committed to internal talent, especially that of our women. For this reason, we consider the active promotion of equality and the empowerment of women as an inalienable value for us.

Despite the fact that the percentage of women in Prosegur Cash has already reached a figure above the average for our sector, we remain focused on continuing to increase the representation of women and gradually achieve a gender balance.

Precisely because equality is one of the central angles of Prosegur Cash, we have created #EmpoweredWomen, the programme through which we promote female talent. This includes an individual work plan for all women with greater responsibility, as well as the #EmpoweredWomen Scholarships, in collaboration with the Prosegur Foundation, the purpose of which is to provide women of all professional categories of Prosegur Cash with opportunities through training programmes.

SDG 7: Affordable and non-polluting energy

Our Strategic Plan includes the line of action and the commitment that Spain has adopted as a whole: that all electricity consumed might come from renewable sources as soon as possible. Rapid progress is being made in this regard with the north committed to the exclusive use of affordable, safe, sustainable, modern and non-polluting energy.

The change to efficiency will also be a change to a less contaminating model. Prosegur Cash's goal is to decrease consumption annually by 3% per kilometre. Older armoured vehicles (with increased emissions) have been decommissioned and we want to move toward a hybrid and electric model in Europe. Additionally, an innovative project to create an armoured vehicle driven by a hydrogen fuel cell is also on the table.

SDG 8: Decent work and economic growth

Prosegur Cash's commitment to the communities in which we operate is based on offering quality employment and guaranteeing decent working conditions and constant and fluid social dialogue.

It is our firm goal to maintain the connection between social progress and economic growth, reaffirming our commitment to strict compliance with the law in all those regions in which we are present, complying with local legislation and the requirements that exist in each one of them.

We likewise maintain constant collaboration with legitimate employee representatives for effective communication and open dialogue. So much so that we have 80% of employees covered by existing Bargaining agreements.

Maintaining stable and productive labour relations is a priority for Prosegur Cash, which is why we seek to foster trust and mutual respect between employers, workers and their organisations, in order to identify common interests to increase productivity and improve our professionals' working conditions.

SDG 9: Industry, innovation and infrastructure

The company has launched an ambitious Innovation and Digital Transformation Plan. The future of the business lies with R+D, and it has endowed this pillar with a certified total investment of EUR 26.6 million from the Prosegur Group. In Prosegur Cash, technology forms part of its activity's DNA. In 2020 it placed the Agile method into motion in a search for excellence by improving processes and services. To this regard, the positive evolution of New Products blazes the trail we wish to travel throughout the Strategic Plan.

SDG 12: Production and responsible consumption

The fight against climate change is a task taken on with the utmost seriousness at all levels of the company. Carbon dioxide (CO2) emissions are controlled, there is a smartphone application that allows you to reserve ecological vehicles (electric and natural gas) by time slots, and a multifunctional model of printers has been installed in the offices, which contribute to reducing paper consumption. Another measure implemented is the recycling of Prosegur Cash employee garments, with its subsequent positive impact on the environment. Uniforms follow an ecodesign pattern to lengthen their useful life, and are also made by people with intellectual disabilities.

SDG 13: Climate action

Mitigation of climatic impact is essential to Prosegur Cash's narrative. To begin with, we closely monitor the volume of our CO2 emissions with the aim of gradually reducing it and fully offset it before 2040. This goal is addressed in the signing of The Climate Pledge initiative, promoted by Amazon and Global Optimism. Older vehicles with high consumption are also being removed from the Prosegur Cash fleet.

SDG 16: Peace, justice and solid institutions

Make the world a safer place. This is a responsibility inherent to an activity like the one that Prosegur Cash performs. All company workers, regardless of their position, have an ethical commitment and strict compliance standards. Prosegur Cash has a Code of Ethics and Conduct that accurately traces the behavioural guidelines of the company's professionals.

This regulation focuses above all on compliance with the law, respect for human rights, equality and fair treatment among workers. But it goes further and also implies a code of respect in the relationship with our stakeholders. We are talking about a circle and it has a space that closes it. The Corporate Compliance Programme eliminates or reduces breaches that may arise in daily work.

SDG 17: Alliances to achieve objectives

Prosegur understands that in order to make this program a reality, it is necessary to work jointly and in coordination with the civil, state and business worlds. The company is part of various organisations that share this philosophy. It also supports the United Nations Global Compact, a call for companies to incorporate ten universal principles related to human rights, the environment, labour and the fight against corruption in their strategies. This pact is also an engine for moving forward in the implementation of the SDGs, reinforced by the already-mentioned integration of Prosegur in The Climate Pledge and Forética.

4.2. CREATION OF VALUE

Prosegur Cash is a company that generates value. And part of our essence consists of a just and equitable distribution of that income. There are three basic destinations: employees (39%),

suppliers (25%) and public administrations (19%). By extension, our activity benefits investors and shareholders, and the company overall.

4.3. IMPACT OF NON-FINANCIAL QUESTIONS ON THE BUSINESS MODEL

Sustainability is a demand of the market, society and clients. The environment varies and requires continuous transformation. The value-added products and services associated with technology will be a pair that dances their particular tango. The music playing in the background is the score for artificial intelligence, big data analytics, the internet of things, and less reliance on carbonbased energy.

This new vision comes at a price. In accounting terms they would be the financial impact of nonfinancial issues. Far from the economic tongue twister, they are simple concepts. Prosegur Cash is investing (in financial terminology we speak of Capex) today to achieve benefits tomorrow. For example, in the purchase of less polluting vehicles that allow access to city centres. But the balance is dressed. The reduction of emissions and the purchase of electrical energy increase operating expenses (Opex). Although at Prosegur Cash, sustainability is priceless.

4.4. MATERIALITY ANALYSIS

This materiality analysis of Prosegur Cash—that is, of its responsibility to deal with impacts and risks— revises and updates the previous (2020) materiality matrix and adapts its most relevant aspects to the sector context and evolution.

We have followed the concept of 'simple materiality', while keeping in mind the internal and external relevance. To do this, we not only identify the most significant economic, social and environmental impacts of the company, we also include their assessment for both external stakeholders, that is, clients and shareholders, and internal: Senior Management and employees. With the latter we maintain a constant dialogue through unions and workers' organisations. We thus aspire to show its progress and determine the most appropriate actions to continue generating value.

The analysis of priorities carried out this year results in a Materiality Matrix with 36 relevant issues. We have classified 20 of them as priorities for our Sustainability Strategy and the actions that we will develop next year.

In the following, we detail the materiality goals and the process to achieve them:

Objectives

• ^J To each year define and update the material issues three years ahead, considering the maturity of emerging aspects, among Prosegur Cash's stakeholders and the response capacity of our organisation.
• ^J To anticipate the concerns and expectations of internal and external stakeholders to improve our sustainable behaviour.
• ^J To focus on the most relevant issues to manage and implement sustainability in Prosegur Cash, in order to mitigate risks and align the reports with said priority objectives.

• ^J To integrate knowledge about the latest sustainability trends in the market and the sector, and to analyse the sustainable policies of the main companies in the field of security (benchmarking).
• ^J Through interviews and questionnaires, to find out what the company's Senior Management and its main stakeholders think about the material priorities.
• ^J Likewise, to know our employees' opinion through a climate survey.

Methodology

• ^J To identify material issues with possible impacts on the environment and nonfinancial issues that may affect Prosegur Cash. In this way:
• ^J We review the company's Sustainability Strategy and the latest materiality analysis to also determine its validity.
• ^J We delve into specific material aspects by analysing the main trends in the sustainability and security sectors and their reference companies.
• ^J We classify and structure the material issues around the following axes: People and safe work; Ethics, transparency and governance, Environment.
• ^J To prioritise the most important issues by twofold analysis: external relevance for stakeholders and internal relevance for Senior Management and employees.
• ^J To prepare a Materiality Matrix with the results of that prioritisation based on their importance and possible impact on the business.

In the following table we detail the classification of the 20 main issues resulting from the materiality analysis in three categories of importance —critical, high and medium. These

Internal relevance

The materiality analysis points out determining aspects for Prosegur Cash: firstly, the occupational health and safety of its employees, together with the fight against corruption and compliance with the code of ethics and labour relations, in addition to respect for human rights, good governance, diversity, equality and inclusion, data protection and information security.

take into account the level of priority when implementing plans, projects and actions, from those that require immediate development to those that can afford longer deadlines:

• 1 Diversity, equality and integration
• 2 Ethics and anti-corruption
• 3 Human Rights
• 4 Occupational health and safety
• 5 Customer relations
• 6 Good Governance
• 7 Risk management
• 8 Economic performance
• 9 Atmospheric Pollution: reducing CO2 emissions
• 10 Regulatory and legal compliance
• 11 Discussion with stakeholders
• 12 Talent management
• 13 Promoting Technology and innovation
• 14 Data protection and information security
• 15 Responsible supplier management
• 16 Supply chain management
• 17 Community relations
• 18 Labour Relations
• 19 Business continuity
• 20 Sustainable mobility as a fight against climate change
• People and safe work Ethics, transparency and governance Environment

Compared to the previous year, we have increased the importance we attribute to aspects related to air pollution and the reduction of CO2 emissions. And, in keeping with the results of 2021, our priorities do not include biodiversity and the fight against the food waste, since Prosegur Cash's activities have no significant impact on either of them.

5. ENVIRONMENT

'If the world does not learn now to show respect to nature, what kind of future will new generations have', Rigoberta Menchú, Guatemala, activist.

At Prosegur Cash, in 2021 we adopted a new, much more committed, demanding and ambitious Environmental Policy, which affects all company instances, from our internal daily action protocols to our purchasing management model.

These are its main guiding principles:

• ^J Within the scope of the transition toward a low emissions model, we reiterate our adherence to the United Nations Sustainability Development Goals.
• ^J A wager for the circular economy and drastic reduction of all types of waste.
• ^J A precise measurement of the carbon footprint and the effect on this indicator of each of our specific actions.
• ^J We work to identify the main environmental risks and develop measures to mitigate those risks. We apply the principle of precaution, seeking to guarantee a high level of environmental protection by taking preventive decisions in the event of risk.
• ^J We apply our own model for

this purpose: the Environmental Management System. We promote a policy of innovation and continuous environmental improvement on products, services and processes, and we set ambitious goals at local as well as global levels.

• ^J We rely on specific tools such as: clear organisational structure, the environmental variable of all risk control and management policies, endowment of specific and concrete goals verified from step to step, the extension of policies and goals to the supply chain and participation in international sustainability ratings and indices.
• ^J We train and raise the awareness of our employees and stakeholders in order to advance more rapidly toward those goals.
• ^J We notify environmental performance to stakeholders and to society in general, transparently and thoroughly, by several channels: reports, webs, social networks, mass media, Intranet, mobile apps, telephone and communication mailbox.

5.1. ENVIRONMENTAL ASPECTS

The business activities we develop do not have a significant impact on the environment, accelerate climate change or pose a threat to biodiversity. Nor do they have a significant impact in terms of acoustic or light contamination. They are

activities related to the provision of services, not transformation or production. These activities are labour intensive. For example, in transport of securities and cash management tasks.

As an example of that low impact, we can cite a study of the Netherlands Central Bank on the potential index of global warming in the sector for coin and bill production, ATM operation and cash-in-transfer, which scarcely represents 0.0009% in the country.

Therefore, the primary environmental aspect inherent to our business activity has to do with fuel consumption and direct emissions of greenhouse gases, in addition to the consumption of electricity, paper and plastics in other operations.

Nevertheless, our Environmental Policy's commitment is to progressively decrease the company's environmental footprint by means of the following initiatives.

It is important that the global changes caused by the COVID-19 pandemic have not had a significant impact on our environmental performance.

Towards a low carbon economy

The latest United Nations Climate Conference (COP26) yields a clear verdict: the global decarbonisation process is advancing at an insufficient rate to contain the increase in temperatures. It is therefore essential to speed up the pace.

In Prosegur Cash we assume our responsibility in this collective challenge, and in 2021 we renewed strategic commitments to achieve carbon neutrality prior to 2040. We have furthermore adhered to The Climate Pledge project to combat climate change.

Likewise, in line with our ambition, we have begun work on the possible establishment of emission reduction targets both in the short and long term, in line with the Science Based Targets (SBTi) initiative.

We were pioneers in applying emission reduction measures in the private security sector, and we are doing so again by launching a specific largescale decarbonisation project. Its first phase offsets the equivalent CO2 emissions generated by the European operations through waste management in Rio de Janeiro (Brazil). Endorsed by international reference standards and aligned with the SDGs, the project has already avoided the emission of more than 2.5 million tons of CO2 (Certified Emission Reduction) and furthermore significantly reduces the emission of methane, another greenhouse gas that is 25 times more harmful than CO2.

The choice of Brazil is no accident; it is explained precisely by its status as a strategic market and its special importance for the health of the planet given its immense biodiversity and the CO2 sink concentrated in its territory. The emissions compensation model will gradually be extended to the Asia-Pacific region and all of LatAm, until it covers all countries where Prosegur Cash operates in the medium term.

On the other hand it is worthy to note that 100% of the energy consumed in Spain comes from renewable sources.

We have launched a pioneering programme in our sector to offset the equivalent CO2 emissions generated by our operations in Europe.

Risks and opportunities derived from climate change

Throughout 2021, we carried out a specific project to analyse potential risks and opportunities arising from climate change. This examination was made under a GHG (greenhouse gas) emissions scenario and in different time periods, in accordance with the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures). The aim is to incorporate climate change into the short, medium and long-term business strategy, to manage risks appropriately and to maximise opportunities for our business.

Chosen scenario:

In recent years, climate change has become one of the most relevant risks within the Risk Management Model.

The study focuses on the exposure of our business to physical risks, the risks arising from the transition to a decarbonised economy, and the opportunities that might arise as a result of climate change and the transition to decarbonisation of the economy. To do this, we have analysed the probability and impact in the RCP 2.6 scenario (Representative concentration pathway, which assumes a substantial reduction in GHG emissions over time, to ensure that its radiative forcing first reaches 3.1 W/M2 in 2050 and 2.6 by 2100. The temperature probably does not exceed 2 °C and in several time horizons in the short, medium and long term.

Context of the chosen scenario:

At the time the scenario was chosen, the Sixth Assessment Report (AR6) of the Intergovernmental Panel on Climate Change (IPCC) had not been published, so the scenario was established with the data available up to that time. The most optimistic scenario was set.

• ^J The scenario chosen by Prosegur is halfway between two of the scenarios used by the IPCC in AR6.
• ^J The chosen scenario complies with the TCFD recommendations to choose a scenario of 2 °C or less.
• ^J The scenario is aligned with the objectives of the policies developed from Europe.
• ^J The chosen scenario assumes that policies will continue to be developed throughout the decade, which will make it even more plausible than SSP2 -4.5.

Additionally, we will continue to periodically evaluate climate risks and opportunities in the different scenarios, taking into account those of greatest probability according to the conclusions emanating from the main international organisations.

Climate risk and opportunity analysis methodology:

Each of the climatic risks and opportunities has been analysed taking into account different sources of internal and external information, according to the nature of the risk or opportunity. For physical risks, existing maps with climate projections have been used to find out how our facilities will be affected, alongside qualitative information from reputable sources. For transition risks, the regulation established by governments and institutions and the various future development plans and their implications were analysed. Finally, qualitative information from recognised sources was studied for opportunities.

In this way, for each of the areas, the particular impact that the risks and opportunities derived from climate change have on the assets and activities of Prosegur was evaluated, analysing their current and future implications on our activities. The study allowed us to establish the values of probability of occurrence and potential impact, identifying the time horizon of significant materialisation.

Furthermore, the established values of probable occurrence and impact on our activity, allowed us to prepare the different heat maps for each of the identified risks and opportunities.

Climate change risks:

The results of this scenario analysis indicate that in the SSP2 -2.6 scenario, the most relevant global risks that would affect our business are transition risks (twenty-one transition risks versus nine physical risks). On the time horizon, eight risks are current, fourteen risks are concentrated in the short term (from one to five years), four in the medium term (from six to fifteen years) and four in the long term (from sixteen to thirty years).

Physical impediments on mobility and new information reporting requirements stand out as current risks. In the short term, transition risks related to evolution towards low-emission technologies and new rates linked to GHG emissions derived from operating activity. In the medium term, transition risks such as geopolitical and social instability and loss of asset value. Finally, in the long term, the transition risk of variation in the availability of resources and physical increases in environmental temperature and sea level.

Physical risks

Chronic

T The increased environmental temperature or sea level, as well as rainfall and river flooding.

Acute

T Extreme rainfall (torrential rain, hail or snow) and extreme weather events, such as forest fires.

Transition hazards

Regulatory

• T Rates related activity GHG emissions.
• T Regulatory restrictions on vehicle mobility.
• T New information reporting requirements.
• T New legal requirements regarding energy efficiency in buildings.
• T New legal requirements regarding the reduction of GHG emissions and climate change management.
• T Increased exposure to environmental lawsuits/violations.

Technological

T Transition towards low emissions technologies.

Market

• T Variation in resource availability.
• T Changes in client behaviour/preferences. Inappropriate insurance cover.
• T Change in insurance conditions. Market uncertainty.
• T Difficulties achieving financing. Geopolitical and social instability.
• T Loss of value in assets.

Of Reputation

• T Increased concern or negative comments from stakeholders.
• T Changes to the Group's structure.
• T Prosegur loss of image due to the use of resources/services.
• T Non-fulfilment of climate goals.
• T Deterioration of the image of the sector.

Climate change opportunities:

Climate change and the transition to a decarbonised economy not only pose risks for companies. Opportunities also arise.

The results of our analysis establish thirteen opportunities (nine market opportunities and four of various types).

On the time horizon, we have identified one current opportunity regarding direct incentives from the administration related to energy efficiency and resource consumption; ten shortterm opportunities, among which the direct incentives of the administration related to the decarbonisation of transport and differentiation from the competition stand out; one opportunity in the medium term related to changes in client perception; and one long-term opportunity related to improving the image of the sector.

More energy efficiency

In Prosegur Cash we optimise the energy efficiency of our activities with products such as: ^J LED lighting. Although since 2015 we have developed a global plan to replace lighting with LED technology, we have set ourselves the goal of achieving 100% efficient lighting in the next three years. In the first phase, some Spanish offices will serve as a pilot experience to reduce total energy consumption by 30%. Later, the project will extend to other branches in Spain and Portugal with a potential impact for carbon footprint reduction of 35% in total consumption, a potential reduction of 50% in the consumption of electricity and an environmental impact of 225 tonnes of CO2.

^J Photovoltaic self-generation. We have followed in the footsteps of the pilot programme started in 2020 with the installation of photovoltaic solar panels in Prosegur Cash branches in Brazil and extended that action to Europe in 2021. The Madrid-Vicálvaro Delegation (Spain) will serve as a laboratory to generate its own renewable energy through photovoltaic solar panels, with a potential reduction in the carbon footprint of 348 tons of CO2 and self-generation of 15.4% of the total energy demanded. The plan is for it to be replicated in ten Spanish and Portuguese buildings to self-generate an average of 25% of the energy demand.

In Spain, these actions will entail a foreseeable improvement in the energy certification label of the linked properties.

More ecological, agile and urban mobility

We have been advancing for years in assuring the sustainability of our heavy and light fleet. In renovating, the company chooses vehicles in consideration of compliance with Euro VI legislation, lower fuel consumption and the lowest direct emissions possible of CO2. In 2021, the Prosegur Group fleet added 440 ECO or ZERO environmental category vehicles, with 100% electric, hybrid or ethanol, LPG (liquefied petroleum gas) or NCG (natural compressed gas) fuelled engines, depending upon the country and ease of implementation.

We have also promoted a shared fleet model in Spain, designed to cover the needs for mobility based on use. It has been in use for 3 years now, and allows a broad group of users, by using a reservation platform managed from their smartphone, to reserve the use of the fleet of ecological vehicles by timeslots.

Among other measures, we have also made progress in the global control of fuel consumption by reducing armoured vehicle fuel at the operational base level. Furthermore, in 2021 we decommissioned 334 armoured units as part of a permanent renewal plan for the heavy fleet, that identifies those vehicles with greater fuel consumption due to their age or state of repair. In this way we are able to reduce the carbon footprint and make variable fleet costs more efficient.

In 2021 we added two new projects with those same goals in mind:

• ^J Research and development of lighter materials to reduce armoured vehicle consumption and streamline urban operations. We are talking about two new models that will make their début on the Iberian peninsula: one weighing 3.5 tonnes, 100% electric, and another weighing 5.5 tonnes.
• ^J Hybridisation of armoured vehicles with more ecological LPG engines, less polluting than diesel or petrol engines.

These efforts are added to the inclusion in 2020 of a 100% electric armoured vehicle implemented in Germany and of hybrid armoured vehicles in Spain that combine a 100 PS EURO VI thermal engine and a 40 KW electric ECO environmental engine. Those first 12 hybrid armoured vehicles save almost 25% in CO2 emissions, 23% in fuel and decrease maintenance costs by 10%.

We have also maintained our collaboration with several companies in the automotive sector, universities and research centres to develop new sustainable mobility solutions: specifically, the design of armoured vehicles that consume alternative fuels such as green hydrogen and other renewable varieties.

Recycling and circular economy

Extending the life cycle of products and services is a pillar of our Environmental Policy. To attain this, we turn traditional operating materials into more sustainable and ecological solutions.

We wish to minimise waste and keep the product materials that we use in the economy, whenever possible. For example, we perform a standardisation process with tyre suppliers to ensure recycling is duly guaranteed. Furthermore, in our own shops in several LatAm countries we have established tyre collection models for proper recycling.

The tyre waste treatment in Spain follows the requirements of Royal Decree 1619/2005, prioritising reduction, reuse and recycling by an authorised supplier. The management of NFU (Out of Use Tyres) in the rest of European countries is governed by the attribution of the ECOTAX by the producing companies, which is applied in the purchase of the new tyre and is intended for the removal and recycling treatment by organisations approved for this purpose.

Likewise, we are progressing in reducing the plastics consumption and have included sustainability requirements for the bags used in cash-in-transit services. For example, in Spain we have replaced those made of virgin polymer with other, more sustainable ones made of recycled material (post-consumption recycled polyethylene). In fact, our main suppliers have the European Natur Cycle and Blue Angel Certificates. Progress continues on the

innovation project for the first compostable cashin-transit bag made from 100% biodegradable materials.

We also reduce toner and paper waste by means of a new global printer model, homogeneous among countries to facilitate control and monitoring, together with other measures such as the digitisation of administrative processes or the implementation of telework. We are also working on global waste management with containers adapted for the deposit of refuse or waste, such as cardboard, plastic, cells, batteries and scrap.

Evolving toward a more circular economy also entails a commitment to social benefits. Such is the case of our uniforms manufactured with Ecodesign criteria to extend their useful life, that are furthermore distributed in Europe from a Spanish warehouse jointly managed with the Aprocor Foundation, that promotes the inclusion of disabled individuals. Circular management includes direct logistics, reverse logistics and garment recycling.

At 31 December 2021, hazardous and nonhazardous waste managed amount to 92 tonnes and 1,605 tonnes, respectively (2020: 94 ton and 1,831 tons respectively).

Awareness raising and volunteering to face the sustainable challenge

We conceive the fight against climate change as a collective challenge without precedent, which is why we give priority to the environmental awareness of our target market through communication campaigns, training activities and corporate volunteering.

As an example: in 2021, several volunteer employees and their families planted 708 trees on moorland in Perales del Alfambra, Teruel, one of the areas most affected by deforestation in Spain. This is the first step toward developing a much more extensive forest cover, the Prosegur Forest, a project that we are implementing in collaboration with the technological development company ReTree.

Thanks to the algorithms trained with artificial intelligence and the monitoring technology developed by the start-up, our employees will be able to consult the positive impact on the environment online, with specific indicators such as the amount of CO2 captured by the trees. In fact, it has been calculated that those first specimens, in spite of their small size, can already capture almost 600 kg of CO2. Furthermore, the new forest may offer the area's inhabitants with an ecosystem and green areas that contribute toward the rural economy.

Measures aimed at minimising water consumption

Our activities are not intensive in water use. We are nevertheless conscious of the enormous challenges facing the planet with regard to this scarce commodity.

This is why we verify the consumption of cubic metres of water per occupied square metre and resident users, to assess any discrepancies that may indicate poor consumer habits in general or undetected failures.

In addition, the number of vehicles will be included as a variable in LatAm countries, for comparison with possible inefficient water uses.

5.2. EUROPEAN TAXONOMY ON SUSTAINABILITY

When can it be said with certainty that a business activity is sustainable from an environmental point of view? The answer to this question is not simple and, in fact, the lack of a criterion that specifies the degree of sustainability of a project is considered a strategic barrier to sustainable development. The objective of the European Taxonomy that is part of the Sustainable Finance Plan of the European Union is to remedy this deficiency in the following way:

^J By establishing the criteria and guidelines for measuring the degree of sustainability and unifying the reporting systems to facilitate comparisons.

5.2.1. Introduction to taxonomy

One of the most important goals of the EU Action Plan on Sustainable Finance is to direct cash flows toward sustainable investments. Within this context, the EU Taxonomy Regulation entered into force in mid-2020, establishing some new obligations with which companies must comply.

Regulation (EU) 2020/852 of the European Parliament and of the Council, of 18 June 2020, on the establishment of a framework to facilitate sustainable investment (hereinafter, 'Taxonomy' or 'the Regulation') seeks to serve as a standard and obligatory classification system for determining which economic activities are considered 'environmentally sustainable' in the EU.

The EU has currently published a catalogue of sustainable activities that address two of the six environmental goals that will be available: the mitigation of climate change and the adaptation to climate change. Companies should therefore report annually on the classification of their activities as 'environmentally sustainable', in accordance with EU Taxonomy. This will require

and companies to better plan their sustainable transition, as well as the information they disclose.

^J By helping investors to make decisions

• ^J By allowing business projects to be aligned with major environmental agreements such as the Green Deal or the Paris Agreement.
• ^J By contributing to financing the transition towards a carbon-neutral, resilient and sustainable community economy.

an initial distinction between Taxonomy-Eligibility and Taxonomy-Alignment.

It is first necessary to examine whether or not an activity is described in Annexes I and II to the Commission Delegated Regulation (EU) 2021/2139, since only those activities are eligible for Taxonomy.

A second step requires an analysis on whether the activities previously identified as eligible for Taxonomy may be considered aligned with Taxonomy and, therefore, 'environmentally sustainable'.

In 2022, using data corresponding to the 2021 report, in accordance with the reduced reporting obligation granted by the EU, only the proportions of activities eligible and ineligible for taxonomy must be published in terms of turnover, capital expenditure (CapEx) and operating expenses (OpEx). Since this is the first year in which this exercise is performed, it should be considered that prior data are unavailable for comparison.

Subject matter and scope

In accordance with Article 1.1, Regulation (EU) 2020/852 applies to companies that are subject to an obligation to publish a nonfinancial reporting statement or consolidated non-financial reporting statement in keeping with article 19(a) or article 29(a) of Directive 2013/34(EU) of the European Parliament and of the Council, respectively.

In accordance with these regulatory obligations, Prosegur Cash, S.A. is obligated to comply with Taxonomy and to report the specific Key

Performance Indicators (hereinafter, 'KPI') on the eligibility of its activities.

Therefore on the basis of an integral analysis of its economic activities, Prosegur Cash, S.A. provides the proportion of turnover/capital expenditure (CapEx)/operating expenses (OpEx) eligible for Taxonomy in their respective totals for financial year 2021.

This process includes the analysis of the company's percentage of Turnover, Capex and Opex at the consolidated group level for all companies.

5.2.2. Main results

During the 2021 financial year, Prosegur Cash obtained a total turnover of EUR 1,517,486,548, with a total Capex of EUR 67,215,502 and a total Opex of EUR 106,987,052.

The analysis established the following percentages of eligibility and non-eligibility in accordance with Regulation (EU) 2020/852.

KPIs for Prosegur Cash in 2021

KPIs	Climate change mitigation	Climate change adaptation
Eligible turnover (%)	61.08%	61.08%
Eligible Capex (%)	6.93%	6.93%
Eligible Opex (%)	6.57%	6.57%
Ineligible turnover (%)	38.92%	38.92%
Ineligible Capex (%)	93.07%	93.07%
Ineligible Opex (%)	93.43%	93.43%

5.2.3. Qualitative information

In accordance with point 1.2 of Annex I to the Commission Delegated Regulation supplementing Regulation (EU) 2020/852, in the 2021 financial year non-financial entities should report the following qualitative information.

5.2.3.1. Accounting policy

Next is a description of the manner in which the turnover, investments in fixed assets and operating expenses were determined and how the numerator and denominator for each indicator was assigned.

To this regard, to calculate the amount and percentage of eligibility of the Prosegur Cash activities within the various indicators, the total amount was taken of the specific Turnover, Capex and Opex amount required by regulation for eligible activities: vehicles related to activity 6. Transport. To report Capex and Opex ratios, purchases of assets and processes or services were assessed and it was considered that if they are essential for an eligible activity in particular, they are likewise eligible.

In the case of the Turnover indicator, the accounts are identified on the basis of the Delegated Regulation (EU), within ordinary income for the year, that comprises the company's Turnover. No income from other Group companies, grants or donations, among others, are considered. Once this figure is obtained, it will be the denominator for calculation of the Turnover, the eligible income is taken, as part of the Prosegur Cash income (see the details below in the section 'Assessment of compliance with Regulation 2020/852').

In calculating the Capex, the set of projects reported by the different countries is analysed, the amount of which is taken in its entirety. In this case the accounts are divided into two main groups, 'clients' and 'infrastructures', which are in turn divided into sub-categories that are itemised differently according to the COCE (Cost Centre) to which they belong. This figure is the indicator's denominator. To obtain the numerator, all eligible activities are taken into account (see the details below in the section on 'Assessment of compliance with Regulation 2020/852').

Lastly, for the Opex, the accounts are identified on the basis of the Delegated Regulation (EU) whose type corresponds to expenses in research and development, renovation of existing buildings, short-term lease expenses and maintenance and repairs or expenses that ensure proper asset operation. Once this figure is obtained, which will serve as the denominator for calculation of the Opex, the amount of the numerator should be identified, which is the sum of operating expenses of the Prosegur Cash eligible activities (see the details below in the section on 'Assessment of compliance with Regulation 2020/852').

In order to prevent counting those activities twice, the organisation has established supervision and control measures necessary to ensure the consistency and reliability of the process to extract and transform the information, and by doing so guarantee the integrity and traceability of the information from its source through the reporting of the calculated indicators. To do so it has defined the appropriate responsibilities and mechanisms for segregation of duties that enable supervision of the process tasks, as well as to ensure the uniformity of accounting criteria used and avoid any duplicity in the assignment of inter-company activities or relations in the various indicators.

5.2.3.2. Assessment of compliance with Regulation (EU) 2020/852

In accordance with point 1.2.2.2 of Annex I to the Commission Delegated Regulation supplementing Regulation (EU) 2020/852, Prosegur Cash performed an analysis to determine whether any of its activities are included among the activities described in Annexes I and II of Commission Delegated Regulation (EU) 2021/2139.

Despite the fact that Prosegur' Cash's main activity is identified with NACE code K64.20 (holding companies activities), and this activity is not included in any of the above documents, the Prosegur Cash Accounting department has identified a series of transversal activities that are eligible and included as potentially sustainable activities covered in Regulation (EU) 2020/852. The following logical sequence was used for this identification:

To assess compliance by the description of the activities identified in the Annexes to Delegated Regulation (EU) 2021/2139, specifically regarding '6. Transport', the model was considered in terms of vehicle use (lease, ownership...), vehicle type, characteristics, fuel and the Prosegur Cash activity to which it is assigned. This makes it possible to conclude whether the various vehicles comply with the descriptions of the major activities:

a. 6.5.- Purchase, financing, renting, leasing and operation of vehicles designated as category M1 and N1, or L (2- and 3-wheel vehicles and quadricycles).

b. 6.6.- Purchase, financing, leasing, rental and operation of vehicles designated as category N1, N2 or N3 falling under the scope of EURO VI (242), step E or its successor, for freight transport services by road.

In keeping with the results of this analysis, it may be concluded that the predominantly eligible activities are:

Business line	Description of the identified activity	Activity number included in Regulation (EU) 2020/852*	Description of the activity number included in Regulation (EU) 2020/852	Mitigation goal (Annex I)	Adaptation goal (Annex II)
Prosegur Cash	Activities related to the cash-in-transit service and armoured vehicle operation.	6.6	Freight transport services by road	Yes	Yes
	Employee transport activities to perform tasks.	6.5	Transport by motorcycle, cars and light commercial vehicles	Yes	Yes

5.2.3.3. Contextual information on eligibility indicators

In keeping with point 1.2.3 of Annex I to the Commission Delegated Regulation supplementing Regulation (EU) 2020/852, the informed results of the key indicators reported under 'main results' are set out, specifically the criteria applied and assumptions reached:

Turnover

This considers the income generated for the transport activities considered eligible as set out above. To do this, we have taken the income generated by direct transport reported for the year, and a percentage of income from new products, deriving from the use of transport for the new businesses but for which transport is not their main source of income.

Capex

Starting from the 'Capex cube', which includes the amount of the indicator for the company, it is identified that the transport activity is made up of the 'traffic and fleet' and 'armoured' business lines, which are selected in their entirety.

Opex

All the vehicles active in any period of the 2021 financial year were analysed, selecting those that were under a 'leasing' or 'renting' agreement, therefore entailing an operating expense. Following currency translation into Euros, the months that the vehicles were active during the year and the monthly amount entailing a monthly expense was calculated, in order to obtain the Opex amount.

6. SOCIAL

'He who has faith in himself needs nobody else to believe in him', Miguel de Unamuno, Spain, thinker.

The past financial year stands out as a period of favourable evolution in terms of social and labour concerns. In 2021, we perfected the selection and loyalty of the talent we need to advance in line with emerging social values, such as equal opportunities or the fight against any kind of discrimination, among others.

Despite a particularly difficult economic and

health context, we focused this adaptation in 20 diverse countries from various fronts. For example, on the training of our staff through digital channels, the promotion of teleworking that contributes to the family-work balance and, of course, respect for labour rights and commitment to human rights. And not just at home but in any other organisation where we can influence, even beyond our supply chain.

6.1. EMPLOYEES AND PROFESSIONAL DEVELOPMENT

In Prosegur Cash we understand the relationship with our employees as a mutually beneficial agreement and long-term vocation with a direct impact on the quality of our services.

Therefore, our selection of talent, in addition to technical training, prioritises a high level of ethical values and essential human qualities for the protection of goods and people, such as a sense of responsibility, honesty, and psychological maturity.

Investment in the best possible human capital for our ethical and professional commitments is undoubtedly , the basis of success that we measure with client satisfaction. Taking care of this investment therefore implies , a process of continuous improvement in the selection processes, first to find the most suitable people and then to maintain their long-term loyalty.

Leadership Model, the pillar of talent management

In 2021 we strengthened this process of permanent improvement by adapting our dictionary of competencies (employees' personal and professional qualities) to the principles of the Leadership Model common to all countries. This implies a leap forward, since this model can be considered the backbone of our talent management.

The goal is to enrich the workforce with the best people available. How? Through a structured, standard selection process and with the same evaluation criteria based on homogeneous and thoroughly detailed information on the candidates.

The basic pillars of our leadership model include passion for clients, team spirit and results orientation.

Thus, the five basic principles of the model guide the personal behaviour and professional performance of all employees, regardless of their activity, business, country or hierarchical position. Namely:

• ^J Passion for clients.
• ^J Results orientation.
• ^J Transformation and innovation.
• ^J Responsibility and commitment.
• ^J Team spirit.
• ^J Those principles give rise to the following management tools that Prosegur Cash implements to optimise the performance and harmonious operation of its teams:
• ^J Performance evaluation. This allows employees of the structure group to selfassess and to create a space for dialogue and feedback with their managers, in order to establish development plans.

• ^J 360º assessment of the Managing Director that supplements the above assessment, including the evaluation of direct collaborators that provides a panoramic view of his management.
• ^J Talent reviews of the key management group. After identifying direct supervisor strengths and specific points to improve, we design the tailored development plans and ensure succession plans.
• ^J Assessment Plans. Carried out ad hoc for specific groups at the request of the different businesses. They are carried out through the Panorama analysis tool, with the aim of identifying employee strengths and areas for improvement and designing tailored development plans. One example: in 2021 we performed an assessment for our group of delegates, in which 337 employees in 19 countries participated.

13,164 candidates to join Prosegur Cash have used the video-interview platform in their selection processes.

Technological solutions for the selection of talent

In 2021, we strengthened the personnel recruitment and selection systems through technological tools integrated into the company's process of digital transformation:

• ^J The curricular robotisation processes; in other words the qualitative use of intelligent analysis technologies to screen applications, improve the experience of both candidates and employees and optimise recruiter handling.
• ^J In a context of a prolonged pandemic, teleworking and digitisation, 13,164 candidates have used the deferred or live video-interview platform, which provides a useful solution to get to know the applicants better and enhance our employer brand image.
• ^J We implemented predictive selection tests in Spain that improve the fit of different job profiles.
• ^J We have improved the curricular enrolment, selection and onboarding processes (the step from candidate to employee) through the Alta Digital tool. This allows applicants to self-manage all the necessary information in a simple and intuitive way, avoiding trips to the offices, making Human Resource management more efficient and deepening digitisation from recruitment to contracting. It is already implemented in Argentina and Brazil, is advancing in Peru and is planned for deployment in Portugal and Spain in 2022.

6.1.1. Training

We are convinced that our main asset, human capital, is revalued with the highest possible quality in qualification and degree of professional specialisation. That is, with training as a differentiating factor and to be up to a mission as sensitive as protecting our clients' assets and personal integrity.

This conviction translates into a commitment: to deploy a continuous, diverse, multi-platform training model across the company, specialised according to each business, which aspires to excellence and not only improves employees' ability in their specific positions, but stimulates their proactivity to bring ideas, put them into practice and open new professional paths. These objectives materialise in the following initiatives:

Prosegur Corporate University

It is a virtual space developed on Cornerstone's LMS (Learning Management System) platform, accessible from any connected device or mobile and integrated into our company's intranet. At the Prosegur Corporate University (UP), all Group professionals share knowledge, good practices and experiences, develop their talent through different training tools, deepen their immersion in corporate values, improve their performance and prepare for accelerated changes of the sector, the market and society.

Its catalogue of courses is aligned with the company's professional development plans, varies according to the needs and requirements of each country and focuses on employee self-management. The platform was revamped in 2019 with new resources and tools, and in 2021 we increased the number of registered uses in Prosegur Corporate University by 55.8% compared to 2020, we included new educational applications to improve learning processes and completed the catalogue with courses on leadership development with training on fast management, development, strategy and delegating.

Training plan

Over the past year we also launched a training programme, part of the global strategy of the Human Resources department and targeted at structural groups, with content on Sustainability Awareness, Information Security, Regulatory Compliance, Intellectual Property, Agile Mentality (agile methods, Kanban method and ongoing improvement) and Change Management.

The Plan is designed to support the company's Perform & Transform strategy and in 2021 it achieved a new milestone by extending to the Asia-Pacific region and Germany. In total, more than 5,900 employees in the organisation structure devoted 73,000 hours to this training plan over the course of the year.

New record in online training

Not only have we broken the record for online hours studied in one year, we have pulverised it by going from 136,000 in 2020 to 347,000 in 2021, with an increase of 155%. What is the reason for such a jump in scale? To a large extent, the reason is very well received two projects from the Talent Team in Brazil: a pioneering Diversity and Inclusion (D&I) programme and a didactic and prescriptive itinerary with 16 business acumen courses aimed at the entire workforce. For example, regulatory compliance, corporate culture and practices, skills management and work management.

The online training model matures along with the company's digital transformation process. In this sense, during 2021 the impacts of virtual and face-to-face training were balanced and e-learning design skills were notably improved.

Local and global management at the same time

Another of the milestones in the process of continuous improvement last year was the management and planning of the entire training online and face-to-face training programme by the specialised teams of each country and according to the specific needs of businesses and clients. This proximity management allows content to be personalised based on what the local market is asking for at any given time.

Each country develops a strategy that combines the advantages of the local and the global. On the one hand, it has its own training team that, based on their knowledge of the terrain, defines needs and responses for their case. At the same time, it supports the company's overall vision and makes use of the synergies with the global training team. In this sense, the Corporate Management coordinates some general training actions that any employee can follow through the online training platform. For example, those of regulatory compliance or the Global Training Plan for structural employees.

In 2021, we also contributed to employees' professional and academic training by offering facilities for them to pursue higher education. Law or Business Administration and Management studies in Spain, through the Layret Foundation, serve as examples. In this case, the Layret Foundation makes it easier for the syllabus to be compatible with working hours and video conference class attendance, and at Prosegur Cash, we offer the possibility of taking the exams at the company's facilities to save time and travel. Furthermore, in Brazil we awarded 15 partial scholarships for university studies related to business and areas of specialisation for employees having done at least one year at Prosegur. Finally, Argentina opted for an aid programme with preferential discounts at leading private universities, in addition to scholarships that cover 75% of postgraduate studies or master's degrees in business administration (MBA). In 2021, we awarded two scholarships of this type in this country.

In total, the training given in 2021 exceeded 721,000 hours, meaning an 81% increase with respect to 2020 and an average of 17 hours per employee.

In 2021 we increased the number of hours given on our on-line training programme in the Prosegur Corporate University by 155%.

6.1.2. Remuneration

Our pay systems always meet the corresponding labour legislation, although they may vary with the market context and the company's financial situation. From this preamble, the pay policy meets the following general principles:

• ^J It must be competitive enough not only to attract, but also to retain the best talent. We also take into account the search for professional motivation and direct this stimulus towards business results through variable pay for the management group and key positions in the short, medium and long term.
• ^J It must align with internal equality, as well as comparable market practices and conditions.
• ^J It must take into account the economic situation of the company both at present and in the medium and long term to define the pay schemes and evolve towards a model with a greater proportion of variable remuneration.
• ^J It must apply controls to ensure compliance with the pay policy and to guarantee non-discrimination by gender, race or age.
• ^J It must include evaluations of worker performance (both that of the senior management and the rest of the workforce) that link remuneration to specific objectives, including those of sustainable development.
• ^J It must promote a flexible remuneration system that adapts to the different interests of the employees with both salary and non-salary benefits.
• ^J Finally, the salary structure contemplates a fixed remuneration in accordance with the legal guarantees, living standards and labour practices of each country, and variable remuneration for most of the

groups linked to specific objectives and meritocracy.

An external supplier audits the system for the evaluation of the different jobs based on objective criteria such as responsibility, impact or scope of action, among others. We thus guarantee that the remuneration of all our staff conforms to local salary bands completely free of any type of discrimination.

This is what variable pay is about

• ^J We apply different plans according to the functions and responsibilities of each group:
• ^J DSO. An objectives plan linked to the performance of the most operational teams based on absenteeism ratios, efficiency in services, etc.
• ^J PIC. An incentive plan for commercial groups.
• ^J DPO. An annual bonus plan for structural personnel.
• ^J ILP. A long-term incentive plan aimed at management personnel and linked to different strategic objectives, such as increased sustainability. In some cases, the participation is associated with concrete values of specific units of the company.
• ^J Additional plans for specific groups that align teams with the company's objectives and strategies.

Remuneration to Senior Management and the Board of Directors

The average pay of directors in 2021 was EUR 236,032 (in 2020 it was EUR 209,329 on average). By gender, it breaks down as follows:

• ^J Women: EUR 89,458 on average. In 2020, the pay stood at EUR 75,618.
• ^J Men: EUR 279,074 on average. In 2020, the pay stood at EUR 247,710.

In 2021, the average pay of senior management stood at EUR 199,173, while in 2020 the figure was EUR 247,414. In all cases, the calculation considers paid fixed and variable remuneration as well as allowances and remuneration for being on committees.

6.1.3. Employee relations

The company's relationship with its workers in all countries is governed by principles of justice, fairness, dignity and respect. To ensure compliance, it builds this relationship on three pillars: offering the best working conditions, giving a voice to both employees and their representatives, and applying proactive management that ensures productive and stable labour relations.

We have strong local labour relations teams that guide employee relations around these principles. From the corporate department, the different practices are accompanied and supervised, always with respect for national legislations.

We have deployed new digital management tools to support the management of these teams. Specifically, in 2021 we implemented the innovative litigation tool in Argentina, Chile, Paraguay, Peru and Uruguay, after the success of its application in Spain and Colombia in 2020. The solution has been designed and developed within the company to:

The average remuneration of our directors in 2021 was EUR 236,032.

• ^J Automate various tasks in the management of litigation and work inspections.
• ^J Register all work files in a single repository.
• ^J Carry out exhaustive country-by-country traceability.
• ^J Apply strategic analyses that detect areas for improvement and proactive actions to reduce labour conflict.

Work conditions and social dialogue

2021 marks a new milestone with the publication of the Global Policy on Working Conditions and Social Dialogue, which develops the commitment included in the Corporate Human Rights Policy for decent working conditions in all company activities.

This new strategic document:

• ^J Reaffirms strict compliance with the law in all jurisdictions where we operate.
• ^J It considers the different economic and social conditions in each country, as well as the different legislative frameworks and labour relations systems.
• ^J From adaptation to this specific reality, it establishes the basic principles and practices in working conditions and freedom of association, and extends them to all processes according to the international guidelines that regulate these matters.

Our Labour Relations Policy encourages more agile and flexible ways of organising work to contribute to work-life balance. As part of the intense digital transformation of the company, it addresses aspects such as digital disconnection and promotes hybrid models that alternate face-to-face work in the office with teleworking from home (provided the specific functions of the job allow it), which brings different benefits for the employees, the company and society: for example, the saving of resources, time and travel expenses and the contribution to decongesting cities and reducing polluting gas emissions.

All these measures come with others that make working hours more flexible, improve visibility over schedules and guarantee weekly and monthly breaks, in addition to those linked to maternity and paternity.

The employee satisfaction benchmark

We believe that the entire labour policy would be incomplete without the assessment that its main protagonists, the employees, make of it.

We have a programme that analyses the opinions of professionals, assigns ratings above or below their expectations and identifies both the areas for improvement and the initiatives that bring them the most satisfaction, and which therefore most increase the degree of engagement or sense of belonging to the company.

In order for the assessment to be as accurate as possible, we apply the eNPS (employee Net Promoter Score) methodology as a standard indicator, which also guarantees anonymity in order to avoid bias. It poses a single unequivocal question: 'Between 0 and 10, to what extent would you recommend working at Prosegur Cash to a friend or relative?' The indicator value is calculated by subtracting the percentage of proponents (only those who gave scores of 9 or 10) from that of opponents (those who gave scores from 0 to 6).

Another strength of the model is its frequency: the questionnaire is sent each day to a certain group of professionals until it covers the entire workforce in Argentina, Brazil, Chile, Spain, Paraguay and Uruguay and each person takes part twice each year at most. Measuring the results in real time makes it possible to understand the relationship between employee satisfaction and important events that have occurred in the company or in its environment.

We are talking about the voice of the employees and a way to evaluate the company from a genuine personal opinion. In other words, it is key information that, when analysed, allows us to prioritise urgent initiatives or define specific action plans. For example, the continuous improvements in the Prosegur Corporate University, new functions in the employee mobile app or the teleworking policies for reconciling work and family, all carried out during 2021.

In fact, this labour relations model contributed to the Prosegur Group's reception of the following recognition last year:

• ^J Human Resources Forum Award for Risk Management of Employees Abroad (Spain).
• ^J Cegos Award with E&T for Best Practices in the Development and Learning Category for the Innovation Immersion Programme (Spain).
• ^J Comenius EduMedia Award 2021 Scanner-Suppert App (Germany).
• ^J EU Excellence (India).
• ^J Great Place to Work (India).

But the main award for the company is undoubtedly the positive view of our people. The current average assessment exceeds 67 points when this value in all Spanish companies in 2019 stood at 18, according to the latest Employee Experience Barometer published by the Centre for Human Resources Studies of the Business Institute.

If we refer to team satisfaction, we also talk about generating the framework of trust necessary to express it. We believe it is essential to maintain constant contact with employees to share information and understand their needs. This two-way communication also makes it possible to promote corporate values, the company's social purpose and the sense of belonging to the same corporate culture.

With these objectives, in Human Resources we promote different channels such as the global intranet and its mobile application that receive requests from the teams. In 2021 we updated it with a more intuitive, manageable and scalable interface for new solutions to be added. It includes key functions such as payroll visualisation, access to Prosegur Corporate University and, on the basis of their profile and location, aspects such as work schedules, for example. Other developments were additionally added this year, such as access to social benefits, advantages for employees, welcome plans or information about the Prosegur Foundation.

Its status as a multitasking tool with growing utility explains why during 2021 more than 24,000 users in 17 countries used the app, that is, 57% of the total workforce.

Collective bargaining processes

Our corporate policy recognises the fundamental right of workers to establish, participate in or join unions or other representative bodies without any type of interference, in accordance with Convention 87 of the International Labour Organisation.

In this sense, we hold frequent meetings with the workers' representatives and we start from the commitment to negotiate in good faith, in a constructive manner that respects the parties' independence to assume the commitments reached. We believe that this climate of trust and mutual respect, of active listening and dialogue, of willingness, contributes to understanding the positions of the parties until they agree on common objectives.

The result of this dialogue is specified in the more than 150 Collective Covenants signed, which affect 84% of the total workforce. During 2021, new covenants went ahead in Brazil, Colombia, Spain, Peru, Portugal and Uruguay among other countries, and labour conflict was considerably reduced.

6.2. RESPECT FOR HUMAN RIGHTS

We take an active position that protects and promotes sustainability criteria and human rights from all our activities. And we guarantee compliance with the United Nations Guiding Principles on Business and the obligations imposed by the International Labour Organisation in terms of freedom of association and collective bargaining, discrimination, forced labour and child labour, among others.

In 2020 we already developed the Human Rights Policy as the specific instrument that enhances the protection of human rights, which until then had been reflected in other corporate mechanisms such as the Code of Ethics and Conduct or the Corporate Social Responsibility Policy.

In 2021 we developed said Policy in independent instruments that assume specific commitments and detail the lines of action to safeguard them. Specifically, this year the Diversity and Inclusive Growth, Labour Conditions and Social Dialogue policies were approved, and a comprehensive review of the Occupational Health and Safety Policy was carried out.

Along these lines, we also joined initiatives such as those promoted by the UN Special Rapporteur on human rights defenders, and also the Inclusive Growth Observatory, at the invitation of the NGO Codespa.

Due diligence

Through our Human Rights Policy, we have systematised the management of Due Diligence (the measures or tools that allow identification, prevention, mitigation and accountability in respect of Human Rights) based on the continuous improvement cycle methodology, which sequences management in four phases:

• ^J Planning. We evaluate and identify the company's impact on human rights and prepare a risk map to project the measures that allow us to meet our commitments.
• ^J Deployment. We apply the measures defined in the planning phase. We not only involve all levels of the organisation, but also suppliers, clients and communities related to the company.
• ^J Verification. We quantitatively and qualitatively control compliance with respect for human rights. This supervision task is performed by the audit and internal compliance committees.
• ^J Action. We correct the human rights violations detected in any area and the processes that may be deficient or improvable.

Our risk management and control system also identifies the different types of threats, from operational, regulatory or business risks, to critical financial and reputation risks.

In addition to internal controls, the Prosegur Group has voluntarily decided to be submitted to an external review by a specialised supplier every three years. The last evaluation (by KPMG in 2021) concludes that the company shows a high level of maturity in the protection, respect and fulfilment of its human rights commitments. Among its conclusions, it highlights that, of the 49 recommendations issued by the Due Diligence management in 2018, we have already adopted 67% and 27% are in process.

The Ethics Channel to report and resolve violations

On the other hand, our Ethics Channel is designed as an internal conflict resolution mechanism that allows any person, even from outside the workforce, to report a possible human rights violation safely and anonymously. Once said situation has been reported, the Internal Audit Department ensures equality between the related parties and independently and confidentially coordinates the management, investigation and resolution of the case.

This past year, in line with previous years, we have not received any complaints in relation to Human Rights breaches.

Specific training in human rights

In the preceding section we addressed the importance of training in order to have the best workforce possible. The same principle governs the defence of human rights, which is why we include this commitment in the Human Resources and Regulatory Compliance training plans. In fact, some compulsory courses include sessions on issues such as the control of aggressiveness and the use of force, gender violence, cultural diversity or human rights in the context of companies.

In 2021 we reviewed a good part of the training material to enrich it with the principles and spirit of the new Human Rights Policy. Following the strong momentum for this type of content in 2020, an additional 9,445 hours were taught in 2021, and all mandatory courses for office staff already include specific content on human rights.

6.2.1. Health and occupational safety

At Prosegur Cash, occupational health and safety as a means Cash of ensuring a decent, safe and healthy environment is a priority for all organisational levels. This responsibility is embodied in the quarterly meetings of Health and Safety Committees, led by the steering committee.

Here, the management of occupational risk prevention in each country and its indicators are analysed and supervised, initiatives are proposed and adopted, allocating the necessary resources to their implementation, and a specific analysis is made of all serious or fatal accidents that may have occurred.

In line with the Global Occupational Health and Safety Policy, revised in 2021 and applicable to all business activities, employees and collaborators, Prosegur Cash pursues the firm objective of reducing the serious accident rate to zero, by implementing specific objectives, actions and indicators that are included in its Global Standard for Occupational Health and Safety Indicators, and that are reviewed on a quarterly basis with the company's management.

Apart from the above, the Committee of Experts on Safety and Health, made up of experts in occupational risk prevention from the different countries where Prosegur Cash operates, meets each week to identify needs, trends in the exercise of function and best practices. As a result of its sessions, various initiatives have been set up, such as the Global Road Safety Campaign developed in June 2021, which had more than 11,000 participants from different parts of the world.

Prevention of occupational risks

Prosegur Cash's Occupational Risk Prevention (ORP) management system is doubly reinforced. Beyond the corporate mechanisms mentioned in the section above, Health and Safety management is administered locally. For this reason, the company has experts assigned in each country, which guarantees both strict regulatory compliance in accordance with local laws, and a management close to the different work environments.

As a result of the above, Prosegur Cash presents a large number of initiatives to improve workers' well-being both locally and as part of the corporate projects.

All of this is accessible, with the rest of the information on ORP, through the Intranet app and other new operational tools, which offer employees all the updated information and send notifications focused on their well-being.

But the main guarantee in terms of systematic risk reduction is to give our teams detailed training on the potential threats they face and the necessary measures to prevent them.

As a result of all this, in 2021 a reduction in the incidence rate of 1.3% was achieved. This decrease is derived from the 12.5% reduction in the number of minor accidents and 16% in serious accidents, and has also been reflected in the 1% decrease in both frequency and severity.

Similarly, the prioritisation of health and safety is extended to relations with third parties according to the provisions of the 3P General Purchasing Standard. Prosegur Cash therefore has solid systems for coordinating preventive activities, an essential tool to guarantee optimal working conditions throughout the supply chain and services received by the group.

This exhaustive management architecture is regularly subjected to internal and external checks and evaluations. Obtaining the ISO45001:2018, SRC Act 1988 Self Insurance or NORSOK-S-WA 006-2018/GTC 310:2000 certifications in 2021 is palpable proof of the success of our efforts in this area.

Health crisis

Lastly, as regards management of the health crisis, our company continues to be guided by a strict action protocol to prevent contagion in the work environment:

• ^J The weekly Global Crisis Committee has been maintained to promote agility in decision-making and critical actions.
• ^J There has been a gradual return to face-to-face activity in our offices, always depending on the epidemiological situation in each area, and maintaining teleworking for discretionary use by all staff whose duties allow it.

• ^J The organisational redistribution of shifts and work spaces has been maintained to limit the number of people who come into daily contact in the course of their activities.
• ^J We have made information and awareness campaigns, enabling digital tools for access control, facilitating the traceability of infections and giving

agility to the various procedures as far as possible.

^J At present we continue to use a hybrid telework system, alternating this with several days of in-office presence, for those types of position for which this is possible. The future projection is to give continuity to this hybrid model, adapting it to the company's operational needs.

6.2.2. Non-discrimination and diversity

Plurality, diversity and multiculturalism have always formed part of our corporate identity, as befits a company with a workforce of approximately 45,000 employees in such diverse regions.

In 2021, we updated this commitment by approving the Global Diversity and Inclusive Growth Policy, which serves as an umbrella for the different local equality instruments and plans where the main lines of action are specified to ensure equal treatment and opportunities within the company (work-family life balance measures, publishing of the harassment protocol, among others). Such is the case of the Spanish Equality Plan signed in 2021.

Gender equality

The promotion of female employment is a pending issue in an environment as traditionally masculine as that of private security. According to 2021 data from the employers' association APROSER, only 13% of active security professionals in Spain are women. The figure has increased in recent years, but remains far from parity.

Prosegur Cash, with 25.7% of female workers, presents data above the average for its field of activities, but we are not in a position to fall into complacency: accelerating the process of balance between men and women in our workforce is

one of our main priorities in the field of gender equality and one of the strategic objectives of our Sustainability Master Plan.

The main tool for attracting, promoting and caring for female talent is the #EmpoweredWomen programme, based on three pillars:

• ^J Raising awareness. We offer our staff training sessions on gender equality issues. The last, which had more than a thousand attendees, focused on the impact of unconscious biases.
• ^J Acting. Our High Performance Women programme monitors the members of our workforce with greater responsibilities and more possibilities to develop in the company. Every six months, the Human Resources department reports its progress, skills acquired or challenges faced. The programme also includes specific ongoing training and safe spaces for sharing concerns and experiences.
• ^J Motivating. The #EmpoweredWomen Scholarships, developed together with the Prosegur Foundation and open to all female workers regardless of their position, focus on operational personnel (guards, assistants, etc.) and bring training programmes to those women who have not had the resources, the time

or the support necessary to access them. This gives visibility to their achievements and enhances their chances of internal promotion. The scholarship programme includes a quarterly accompaniment by women with a long career in the company.

Implementation of this programme began remotely, at the height of the pandemic. However, this event imposed by circumstances nevertheless provided an opportunity to facilitate contact among women from different geographical areas and operating units. Launched in Spain in 2021, #EmpoweredWomen is currently spreading to 16 countries in LatAm and Europe, and in the medium term will be available in all Prosegur Cash territories.

Wage gap

In the analysis of this aspect, the company takes into account four main categories (Directors, Middle Managers, Analysts and Operations) and compares them with variables associated with specific geographical areas and the different lines of business. On the basis of these parameters, Prosegur Cash's wage gap is currently 12.1%, attributable above all to remuneration differences in operating positions. In 2020, the Prosegur Cash wage gap was 16.4%.

This calculation takes into account the diversity of the teams that make up our different lines of business, first analysing the salary gap registered in these teams and weighing it according to the number of employees in each one. Through the global compensation tool, the company has specific analysis reports by gender and wage gap that facilitate constant monitoring and allow salary variations that must be corrected to be identified.

Worker remuneration is adjusted in all cases to what is stipulated by law and what is specified in the Collective Agreements, without discrimination in any of the pay elements or conditions. Prosegur Cash guarantees the objectivity of all items in the wage structure.

What's more, in 2021 we contracted an independent and specialised consultancy to audit the job levelling system, not only in order to guarantee pay equity as a whole, but also to ensure that any difference in pay is never due to a matter of gender, ethnic origin, age or any other circumstance that may lead to some type of discrimination. This first audit found no significant incidents.

Employment opportunities for people with disabilities

Prosegur Cash has established a series of measures to boost integration of intellectually or physical disabled people in the labour market, offering them a more stable future through employment.

The main activities in this sense were as follows:

^J Inclusion of people with disabilities in document digitisation processes, and in the management of the large amount of paper generated.

• ^J To gradually increase their percentage in the workforce and broaden the type of positions and tasks available to them.
• ^J Active search for this type of professional profiles through our online job offers.
• ^J Integration of digitisation services offered by disabled staff in a technological area, the Group's Robotisation, Excellence, Automation and Digitisation Centre (CREAD). Here, people with disabilities are placed at the centre of the operation, offering them the chance to move from routine tasks to performing tasks with greater added value such as the training of machine learning models. The Group has four Digitisation Centres in the world, in Brazil, Chile, Spain and Peru, and employs 36 people with some type of disability. As relevant data, these centres have managed more than 34 million pages of the different departments of the company and there is a commitment not only to increase the volume managed but also to export this internal service to third-party clients who might be interested. The CREAD team

was awarded the worldwide Innovation Excellence in Robotic Process Automation (RPA) award at the Blue Prism Awards.

^J Finally, the Group has a Special Employment Centre in Spain, fruit of the partnership between Aprocor and Prosegur to provide disabled people with employment opportunities. For a similar purpose, the 'CICLO' training centre in Brazil: a partnership between Prosegur and the São Paulo Association of Parents and Friends of the Disabled (Brazil).

Additionally, through the Code of Ethics and Conduct, policies that favour integration are promoted in a concrete and effective manner, especially with regard to contracting processes.

Prosegur Cash guarantees all employees access to its facilities by adapting and improving accessibility to all the Group's operating and corporate buildings.

The total number of disabled employees in 2021 was 460 (2020: 496 employees). The medium and long-term objective is to fully integrate such people into our structure.

6.3. PURCHASES AND SUPPLY CHAIN

'Living in harmony with others is not always easy, and poses a constant challenge', Jorge Amado, Brazil, author.

At Prosegur Group, we have a Resources Management Department that is responsible for organising the company's purchasing and supply processes and ensuring that they are carried out in a responsible and sustainable manner.

This Department manages resources to optimise their efficiency and reduce costs, and projects these objectives on relationships with suppliers from the areas of Purchasing and Supply Chain; Fleet; Property and Service Management.

All services and goods are purchased in accordance with the new Purchasing Policy approved in 2021, a specific general, mandatory rule that will be applied to all purchases and contracts of goods and/or services, with the aim of ensuring a homogeneous sustainable supply policy, adequate expense management, process standardisation, protecting the company from unnecessary risks and ensuring legitimate use of company funds. In addition to the legal requirements in each country. In the same way, relations with suppliers are guided by the ABC supplier studio, which defines the strategies, identifies those most critical and determines the treatment according to that importance.

We are talking about key management for our sustainable behaviour given the volume of purchases and contracting of our company: more than 30,000 suppliers in 18 countries, with a large contribution to their economies since 85% of them are local, and in sectors as diverse as technology, fleets, building maintenance, travel, telecommunications, machinery, equipment, marketing or consulting, among many others.

Among this enormous mass of candidates, we prioritise the contracting of suppliers that meet criteria of sustainability and corporate social responsibility. We additionally ask them to

subscribe to and promote the United Nations SDGs and to have some type of certification in ESG criteria. They must also accept, by contract, Prosegur Group's right to carry out an audit on them. In 2021, we have not advanced any audit process.

Furthermore, we include supplier management in our Code of Ethics and Conduct, and their selection follows criteria of independence, objectivity and transparency compatible with obtaining good business conditions. In this regard, we have defined a procedure for action in the event of any conflict of interest or possible fraud in the relationship between an employee and a supplier.

Purchasing and relationships with suppliers follow a process of continuous improvement. In 2021, we added additional sustainability criteria in line with the corporate strategy, we provided training in sustainable purchasing and delivered the first Annual Award for Sustainable Purchasing Initiatives and Projects.

Imminent improvements in management

To deepen the sustainability and gradual optimisation of our supply chain, since May 2021 we have been developing a new global supplier approval process. Alongside this, we improve risk management through assessment and rating tools based on business continuity, environmental impact, employment and contracting conditions, or the reputation of suppliers, among other criteria.

At the same time, we will start sales and operations planning (S&OP) as key support to decision-making across all supply chains. Together with process standardisation, automation and robotisation this new procedure will allow the efficiency, resilience and agility of the operations to be increased.

We are developing a new global supplier approval process that was launched in 2021 and will be progressively extended to all markets until 2023.

6.4. CONSUMERS

At Prosegur Cash, we aim to always meet the expectations of our clients and anticipate their needs through a friendly service based on transparency and a proactive approach.

In recent years, we have implemented a platform for B2B (Business to Business) clients, through which operational and administrative information is available in real time, which allows us to manage security for clients and streamline decision-making. The purpose is to ensure an adequate response to their requirements and

maintain the traceability required for this.

These values of transparency and service are conveyed by all our employees, particularly those in direct contract with clients (sales staff, facility technicians, customer service or security guards).

We also have a CEM Client Experience platform. Its objective is to identify the action levers in order to continue improving the quality of the service. The high level touchpoints in the customer journey for our B2B clients include

those relative to the selling experience, the service provision experience and the global experience, each with specific associated indicators.

Complaint channels and operation

For the claims that derive in Civil Liability, the usual channel is to make a formal claim exposing the facts and the amount claimed for the damages suffered. The salesperson sends the claim to the Legal department and this in turn and with the Risk Management area arranges the processing of compensation, if applicable.

For the rest of claims, there are multiple channels:

• ^J Billing claims, received by the salesperson and resolved by the Prosegur Advanced Administrative Centre (CAAP).
• ^J Operational claims for deficiencies in the operation, received by the salesperson or the operational department.
• ^J Others.

6.5. PROSEGUR FOUNDATION

'It is still not too late to build a world in which solidarity could become a reality', Gabriel García Márquez, Colombia.

At Prosegur Cash, we believe in people who improve the world. Human beings who share their efforts with others to build a more supportive, inclusive, ethical and sustainable society. With humility and conviction, we believe that what is to come depends above all on what we do today. We aspire to building the future.

In this spirit, at the Prosegur Foundation, a nonprofit entity, we channel Prosegur Group's social and cultural action, generating development opportunities for people. A commitment to the communities in which Prosegur and Prosegur Cash operate, materialised through projects in the following fields of action: Development Cooperation, education, labour integration of people with intellectual disabilities, corporate volunteering and the promotion of culture; seeking more innovative approaches every day to respond to new social challenges.

In 2021, at Prosegur Foundation we have developed projects in 14 countries on three continents (Argentina, Chile, Colombia, Costa Rica, El Salvador, Spain, Guatemala, Honduras, Nicaragua, Paraguay, Peru, Portugal, Singapore and Uruguay), progressively implementing the initiatives in the different countries under criteria of sustainability, transparency and replication of good practices.

A social work which, aligned with the United Nations 2030 Agenda for the fight against poverty, inequality and the defence of the planet, compliments and strengthens our company's action in achieving the Sustainable Development Goals. Specifically in Quality Education (SDG4), Decent Work (SDG8) and Generation of Alliances (SDG17).

To carry out these projects, at the Prosegur Foundation we have a professional team headed by the President of Prosegur. The Board of Trustees is made up of representatives from the Board and the Prosegur and Prosegur Cash Steering Committee, who encourage social commitment and promote the institution's activities. Teamwork and continuous improvement processes govern the work, which aspires to be an area that generates shared value for society, the company and its stakeholders.

On an annual basis, Prosegur Cash provides us at the Prosegur Foundation with the funds necessary for our operation. Contribution to the Prosegur Foundation in 2021 amounted to EUR 1,443,852.52.

The social work of the Prosegur Foundation complements and strengthens the action of our company in achieving the Sustainable Development Goals.

6.5.1. Our adaptation to the environment in 2021

Our innovative approach has been put to the test during the pandemic. Without a doubt, the most difficult context we have ever faced and with the greatest economic, labour and social impact; a human impact. Social challenges have evolved and, consequently, so has our response capacity.

In this context, we have developed new forms of collaborative work to continue responding to beneficiary needs, in order to be more efficient and scalable. Technological solutions such as online platforms and formats have been key

in this regard: they have allowed us to keep educational or volunteer activities alive that could not be carried out as before, in person.

In short, the difficulties experienced have also been an opportunity to deepen our strategic and digital adaptation as a Foundation, prioritising agility, creating internal collaboration networks that break down silos and generating alliances with leading entities and entrepreneurs to achieve a more systemic impact.

6.5.2. Main actions in 2021

Against the educational gap

We believe in quality education as the most powerful tool to generate future opportunities. And for this reason, in 2021 we prioritised support for children and young people from the most vulnerable environments, to prevent the pandemic from opening the educational gap. Putting special focus on the students of our Development Cooperation programme, Piecitos Colorados.

The 36 schools attached to Piecitos Colorados in the six LatAm countries (Argentina, Chile, Colombia, Paraguay, Peru and Uruguay) and their 4,800 students, were seriously affected by the closure of the classrooms and the lack of connectivity and devices. To confront this sustained precariousness, which the United Nations has already defined as 'learning poverty', we promoted the following actions to ensure that no student was left behind:

• ^J Workshops for headmasters and headmistresses, in alliance with the Teach for All international educational network, to improve institutional and pedagogical management in times of pandemic.
• ^J Training through playful-educational primers with transversal contents of science, spelling, artistic drawing or emotional intelligence.
• ^J Promotion of reading and digital skills in alliance with the Leer Foundation in Argentina.
• ^J Computational thinking courses aimed at Peruvian teachers, to train them in the fundamentals of computer science and programming, which they then transfer to their students.
• ^J First LatAm Writing Contest for Piecitos Colorados, in alliance with Fundalectura. A transversal project that has developed new learning methodologies, such as infographics and podcasts. The Sueña tu historia, escribe tu futuro (dream your story, write your future) initiative received 458 stories, from which an international panel chose 20 winners.

In addition, in 2021 we reinforced the accompaniment of the 41 Piecitos Colorados students awarded scholarships for their talent in secondary school and university, so that they do not stop their training in this complex educational context. Thus, thanks to the alliance with the Asociación Conciencia entity, we have trained volunteer employees from Colombia and Paraguay as mentors. The aim has been to monitor scholarship students in their countries, to guide them with their experience, to support them in their projects and to strengthen their skills.

Students who, with the right tools, together with their abilities and effort, are called to be agents of change. This is the case of the young Paraguayan 'piecito' Marlene Palma whose talent brought her a scholarship from the Foundation to study the International Baccalaureate at Atlantic College in Wales (belonging to the United World Schools network). After graduating in May 2021, her outstanding performance brought her a full scholarship to study Political Science at a university in the United States.

The Piecitos Colorados scholarship programme allows students to continue their education beyond school, as is the case of Paraguayan Marlene Palma, an International Baccalaureate graduate from the United World School in Wales.

Bridging the digital gap

We refurbish the company's unused computers thanks to the work of professionals in the ICT (Information and Communications Technology) area, to give them a second life, reducing the digital divide that compromises the future of the most vulnerable people.

In 2021, we recycled and delivered nearly 400 computers to Piecitos Colorados students in LatAm, to social integration centres and students at risk of exclusion in Spain, as well as to people with disabilities to support their employment.

Among the digital divide actions carried out in the different countries, that carried out in Chile together with the company B Kyklos stands out. The initiative transcended the educational impact on the students of Piecitos Colorados, to add in the process of reconditioning equipment, the environmental sphere and inclusive growth. The computers are recycled by people with disabilities in an integration centre, where nonreusable components are destroyed following environmental criteria. A 'virtuous' circle or circular economy, thus exemplifying the triple impact.

Talent at the service of innovation

In a context of uncertainty, innovation is even more necessary to adapt and design creative solutions that respond quickly and appropriately to the needs of the moment.

Under this premise, collaboration with the Innovation area of our company has allowed us to continue discovering new, more agile and disruptive ways of working. In 2021, we applied this joint action in two initiatives, aimed at both internal and external talent.

First of all, at the Foundation we joined the Group's Intrapreneurship and Ideation Programme, launching a challenge to discover the entrepreneurs within our organisation. Among all the proposals received worldwide, three 'changemakers' were selected, with the following projects:

^J Development of infrastructures in vulnerable populations in Africa, designed by young talents from the ICAI University in Spain.

• ^J A platform aimed at children, to bring the programming language closer in a playful and digital way.
• ^J Entrepreneurship training to reduce the gender gap in STEM (science, technology, engineering and mathematics) vocations, by supporting girls' talent.

Regarding external talent, our action in 2021 was aimed at searching for innovative, digital and open corporate volunteering initiatives, which will mitigate the effect of the pandemic restrictions on our face-to-face model.

With this challenge, we join the 5th edition of Hunger4Innovation: an innovation programme that connects young university talents with leading companies and institutions from different sectors, to generate creative solutions to the proposed challenges, through a team competition. After 24 hours of intense remote work following agile methodologies, the jury chose the proposal from the In Extremis team as the winner. A solution that stands out for its disruptive nature when it comes to involving company volunteers globally in an online and gamified format, oriented towards security training issues.

We accompany talent and promote excellence

Since 2007, the Talent Scholarships have represented the Prosegur Foundation's commitment to academic excellence and the personal effort of Prosegur Group's professionals and their children, benefiting more than 15,200 students in 14 countries to date. Through its different forms, and depending on the needs of each country, the programme helps high school, technical or university students in their studies.

In the last financial year, and hand in hand with the Human Resources area, we offered our support to the children of employees facing the challenge of looking for their first job in a context of job insecurity. To achieve this, we gave online orientation workshops and training sessions focused on the current demands of companies, with useful tools to access said market.

What's more, in 2021 we expanded our Scholarship programme with a new form aimed at supporting the talent of women in Prosegur and Prosegur Cash and promoting their professional development. Thus, the Empowered Women Scholarships were created in Spain in collaboration with Human Resources, with the aim of being replicated in other countries in the coming years. The professionals benefiting from this aid to training also have a support and mentoring programme given by other women leaders of the Group.

In 2021 we expanded our Talent Scholarship programme with a new form that recognises the effort and professional excellence of women at Prosegur and Prosegur Cash.

Our volunteers, the leaders of environmental awareness

We encourage the participation of Prosegur Cash professionals in different volunteer actions, channelling their solidarity to achieve a positive impact on society.

In addition, as a business foundation, we support the company in achieving its objectives in ESG (Environmental, Social and Governance) matters and in its commitment to sustainability. To this end, we have been developing environmental education initiatives since 2014 aimed at making children aware of the proper management of resources and their active role in caring for the environment.

Following this line, in 2021 we wanted to extend this awareness to the Group professionals and their families, supporting our company's project to reforest an uninhabited area of Spain with the participation of volunteers. The growth of this forest mass started with the planting of more

than 700 trees and can be followed digitally through a geolocation platform developed by ReTree.

New image, new website

Finally, in 2021 we tackled the official launch of our new graphic identity and we launched a new website. At the Prosegur Foundation we have therefore joined yellow to further reflect the brand that we carry within, through a more innovative, current and adaptable image. A change in form that does not alter our essence. Because we evolve to strengthen our purpose and to continue endorsing Prosegur Group's social commitment.

232 CONSOLIDATED DIRECTORS' REPORT 2021

6. SOCIAL

7. GOVERNANCE

'If football has taught me anything about life, it is the importance of being patient', Ricardo Izecson dos Santos Leites, Kaká, Brazil, football player.

7.1. CORPORATE GOVERNANCE

Following the provisions and recommendations of the Unified Code of Good Governance for Listed Companies, approved by the Council of the National Securities Market Commission, and considering the best international practices and recommendations in the field of good governance, Prosegur Cash has remained steadfastly committed to success and its efforts to consolidate a responsible, profitable and sustainable business.

In this regard, the organisation's corporate governance is founded on five core pillars: independence, transparency, protection of minority shareholders, effectiveness and efficiency, and integrity.

The Prosegur Cash Corporate Governance Policy regulates activities in this area, and includes the criteria and principles that define the organisation and functioning of the bodies that govern the Company, applying both national and international best practices.

Respecting these principles and good practices, Prosegur Cash's Corporate Governance System is based on clear goals:

• ^J Promotion of social interest which, ethically and sustainably, creates value for shareholders, clients and society in general.
• ^J Adaptation to the best national and international practices with regard to Corporate Governance, promoting the review and constantly updating the standards of that Governance, the Company and its Group.
• ^J Compliance with regulations in force by Company directors, executives and employees. Special attention will be given to regulatory compliance in terms of the prevention of money laundering, preservation of competition, unfair competition, personal data protection and securities markets.
• ^J Communication of information of interest about the Company to shareholders and the market in general, respecting the principles of transparency and accuracy.
• ^J Promotion of informed participation by shareholders.

The Good Governance strategy combines several standards that help define the Corporate Governance system: Articles of Association, Regulations of the General Meeting and of the Board of Directors, Audit Committee Regulation and the Sustainability, Corporate Governance, Appointment and Remuneration Committee Regulation. Other internal procedures are also added to the regulations to reinforce this policy:

^J Internal Code of Conduct on Matters Relating to Securities Markets. This is a legal code that establishes the rules of conduct by which employees, executives and members of the Company's governing bodies must abide on matters relating to the securities markets that affect the company.

• ^J Code of Ethics and Conduct, which includes the values, principles and standards of action that the employees, managers and members of the governing bodies of the Company must respect, both in their internal professional relationships and in external relationships with shareholders, clients and users, suppliers, public administrations, regulatory bodies and competitors. That is, with society in general.
• ^J Internal Audit Statute, which ensures efficiency and effectiveness in the use of

resources, the reliability of accounting and management information and compliance with the law.

^J Framework Agreement on Relations between Prosegur Cash and Prosegur Compañía de Seguridad, as the controlling shareholder of the Company, the purpose of which is to establish a transparent space of relationships between them, defining their respective areas of activity, the scope of commercial relationships and the mechanisms provided to resolve any possible conflicts of interest.

7.1.1. Ownership structure

The share capital of Prosegur Cash, S.A. is EUR 30,458,933.66, represented by 1,522,946,683 shares with a par value of EUR 0.02 each, represented by book entries, with ISIN code ES0105229001, of a single class and series.

All shares have been fully paid up and subscribed, and are traded on the Stock Exchanges of Madrid, Barcelona, Bilbao and Valencia (Spain). Each share carries the right to one vote and there are no legal or statutory restrictions on the exercise of the vote or on the acquisition or transfer of shares in the share capital.

Acquisition and disposal of own shares

On 23 February 2021, the Company Board of Directors resolved to implement a new Own Shares Buy-back Programme, under the provisions of Regulation (EU) no. 596/2014 on market abuse, and with Commission Delegated Regulation (EU) 2016/1052. This Programme was authorised by the Shareholders General Meeting held on 6 February 2017. And its purpose is to

comply with the commitments and obligations derived from the share compensation plans for the executive directors and employees of the Company.

Under said Programme, the Company acquired a total of 14,000,000 shares, representing approximately 0.92% of its share capital. Once the Programme goals were attained, it ended on 2 August 2021.

On the other hand, on 3 June 2021 the Company gave notice of the termination of the one-year validity period for the Buy-back Programme approved by the Board of Directors on 3 June 2020. 21,589,296 shares were acquired, or approximately 1.39% of the share capital.

The direct result of the Programme's application and the resolution passed (point 13 of the Agenda) during the Shareholders General Meeting held on 28 October 2020, was the share capital reduction by EUR 431,785.92, through the redemption of 21,589,296 own shares. In this way, the resulting share capital was EUR 30,458,933.66, corresponding to 1,522,946,693 shares, with a par value of EUR 0.02 each one, subscribed and paid up in their entirety.

At 2021 year end, Prosegur Cash, S.A.'s treasury stock amounted to 18,198,819 shares of which 1,141,392 are linked to the current liquidity contract which came into force on 11 July 2017.

Share information

Share capital of Prosegur Cash, S.A.	EUR 30,458,933.66
Number of shares	1,522,946,683 shares
Par value per share	EUR 0.02

7.1.2. Governance of Prosegur Cash

The main body representing the share capital of Prosegur Cash is the General Shareholders' Meeting, which exercises the functions granted by law and the Articles of Association. In 2021, the Ordinary General Meeting was held on 2 June. It dealt with various issues: approval of the Company's Annual Accounts, approval of the Company's Statement of Non-Financial Information, validation of the Profit and Loss Account for the 2020 financial year, approval of the management of the Board of Directors for 2020, re-election of directors, acceptance of the capital reduction, and the remuneration policy for directors.

The Board of Directors is the body responsible for the representation, administration, direction, management and control of the Company. Two committees depend on the Board: the Audit Committee and the Sustainability, Corporate Governance, Appointments and Remuneration Committee. The organisation and functioning of both are regulated in the Articles of Association, the Regulations for Management, the Regulations for the Audit Committee and the Regulations for the Sustainability, Corporate Governance, Appointments and Remuneration Committee (detailed information is available on the websites of Prosegur Cash).

The responsibilities of the Audit Committee, mainly composed by independent directors, include: proposing the appointment of the auditor; reviewing the Prosegur Cash accounts; ensuring compliance with legal requirements and the application of generally accepted accounting principles. Although its functions do not end here. Plus analysing the Company's Corporate Social Responsibility Policy, coordinating the process of reporting non-financial information and diversity, and supervising the strategy for communication and relationships with shareholders and investors.

For its part, the duty of the Sustainability, Corporate Governance, Appointments and Remuneration Committee is to establish and review the criteria for the composition and remuneration of the Board of Directors, and of the members of the Prosegur Cash management team. It also periodically reviews payment programmes. It also has the power to provide information, advice and proposals on environmental, social and corporate governance matters. While not forgetting the company's commitment to achieving the United Nations Sustainable Development Goals.

Prosegur Cash's Corporate Governance is a very broad structure, reinforced by additional internal programmes. It can be seen as a succession of complementary layers. The Regulatory Compliance Programme is one of the most

comprehensive. It consists of pre-established procedures, behaviour manuals and training activities, as well as a continuous process of critical evaluation with regards to the prevention of money laundering, defence of competition, unfair competition and other matters.

In practical terms, it complements and develops the Prosegur Cash Code of Ethics and Conduct. An entire geometry is created from this line. Standardised procedures are in place for all the policies analysed, as well as collegiate, internal, permanent and multidisciplinary supervision and control bodies, such as the Risk and Regulatory Compliance Committees. These bodies ensure the implementation, adoption and execution of the Company's best practices, policies and commitments.

In October 2021, Prosegur Cash obtained the AENOR Good Corporate Governance Certification with the highest possible rating: G++. This achievement represents recognition of the company in its work to ensure responsible and transparent corporate governance and relationship protocols.

In October 2021, Prosegur and Prosegur Cash were the first Spanish companies to obtain AENOR Good Corporate Governance certification, with the highest possible rating. G++.

7.1.3. Structure of the Board of Directors

At 31 December 2021, the Prosegur Cash Board of Directors was composed of nine members (33.3% women). Two executives and seven non-executives, four of whom are independent (44.4%) and three proprietary. The President and the Managing Director have different and complementary roles. Prosegur Cash follows the main international standards in matters of Corporate Governance that advise the separation of the two functions.

Composition of the Board of Prosegur Cash, S.A.

7.1.4. Organisational structure

Our organisational structure is designed with the intention of improving business processes and flexibility, which facilitates adaptation to the changing environment and the evolution of services, aimed at generating value for clients. The Business Areas are divided into three geographical segments: LatAm, Europe, Australia, and Asia.

There is also a Division for Innovation and Productivity, a New Business Division and a Global Optimum Division. The corporate functions are supervised by the Global Support Divisions for Finance Support and Strategic Planning.

The organisation of Prosegur Cash is shown in the table below:

7.1.5. Annual Corporate Governance Report

The Annual Corporate Governance Report of Prosegur Cash for 2021 forms part of the Directors' Report, and is presented as a separate document in its corresponding format. It is therefore available on the CNMV and the Prosegur Cash websites from the date of publication of the Annual Accounts.

This report includes section 'E', analysing control and risk management systems of the Company; and 'F', providing details on the risk control and management system in relation with the process of issue of financial information (ICFR) and which is included in section 9 of this Directors' Report.

Prosegur Cash complies with 62 of the 64 recommendations of the Unified Code of Good Governance of Listed Companies, and partially carries out the remaining two.

Prosegur Cash complies with 62 of the 64 recommendations of the Unified Code of Good Governance of listed companies, and partially carries out the remaining two recomendations.

7.1.6. Annual Report on Director Remuneration

The Prosegur Cash Annual Report on Director Remuneration for 2021 forms part of the Directors Report, and is presented in a separate document in its corresponding format. It is therefore available on the CNMV and the Prosegur Cash websites from the date of publication of the Annual Accounts.

7.2. BUSINESS CONDUCT

'Unfair and unworthy behaviours are human, but it is even more humane to fight against them', Bertolt Brecht, Germany, writer.

At Prosegur Cash we are strongly committed to ethical compliance and anti-fraud regulations. This has led us to design a structure of solid pillars to avoid the inherent risks in a business whose logistics move high-value items.

The pillars build a story of security that permeates the entire company. The top layer is the Prosegur Cash Code of Ethics and Conduct. It is a reference that determines our daily activities and the way we relate to employees, shareholders, clients and users, suppliers, authorities, Public Administrations, regulatory bodies, the competition and, very especially, civil society as a whole.

Within this structure, the Code of Ethics and Conduct is not the only regulatory text that binds this behaviour. We also have a Corporate Compliance Programme aimed at all the governing bodies, managers and workers of the company. It produces a series of common standards that must be respected in the relationship with stakeholders, in addition to the Code of Ethics and Conduct.

This philosophy leads to an inalienable path: zero tolerance for any breach or irregularity. For this reason, the standards of the mechanisms for the control and prevention of irregular or illegal practices are of the highest level. However, behind all regulations are people. They are the ethical framework and this culture has spread through our organisation.

7.2.1. Anti-corruption and bribery

Our Corporate Compliance Programme establishes the measures designed to reduce or eliminate the risks of non-compliance with regulations in daily work. It encompasses any aspect, although it focuses above all on antimoney laundering, data protection, defence of competition and prevention of criminal offences.

This programme is approved by our Board of Directors and overseen by the Compliance Committee which acts in an autonomous and independent manner and reports to the Audit Committee. This Committee implements it in close collaboration with an internal structure: General Secretary and representatives of the Legal, Human Resources, Risk Management, Compliance and Internal Audit Directorates.

Our ethical vision is global and, therefore, we have compliance officers in all the countries where we are present. Their function? To implement the Compliance Programme in the countries under their responsibility and ensure that it is respected. The local Compliance Committee makes sure that this is the case. The regulations are very strict, especially in certain high-risk countries. Again the human factor comes into play. Employees, senior managers and members of the governing bodies are offered specific training on this subject.

Due diligence in crime prevention

The principle of due diligence is at the core of Prosegur Cash. It groups and gives coherence to the various elements of internal control that prevent crimes from being committed. It is not just about preparing reports on specific cases or conducting investigations, but also about establishing a corporate culture of extreme responsibility in daily practices that permeates the entire company and ensures that good practices are encouraged and irregularities are avoided, detected and eradicated.

The pattern for this line of action was found in the US Federal Sentencing Guidelines. These guidelines, once assumed, are supervised by North American federal judges. They are the ones who certify that the company acts with due diligence to avoid criminal activities or bad practices.

Prosegur Cash's ethical and security framework, which the firm already has in place, fits in with this high level of demand. This 'architecture' of Prosegur can be summed up in five infinitive verbs:

Preventive controls and risk group approaches

At Prosegur Cash. we base part of our operations on crime prevention. They are a kind of customs barriers, controls which prevent situations that can lead to criminality.

The barrier works on two levels. On the outer margin are the general preventive controls, whose purpose would be to reduce the generic crime risk. After these come the specific controls, focused on mitigating criminal danger.

In 2021, the task of consolidating these specific controls continued to be deepened to guarantee that they satisfactorily cover most eventualities. These are some of the actions carried out:

^J All Prosegur Cash workers have been made aware of the importance of complying, in their daily work, with the General and Specific Preventive Controls.

• ^J Employees have been clearly and unequivocally explained the labour consequences, among others, that a violation of the rules of the Code of Ethics and Conduct may entail.
• ^J The firm condemnation by the company of any behaviour that is illegal or violates its ethical and social principles has been made explicit.
• ^J The necessary measures continue to be adopted to prevent and intervene in the face of the risk of committing crimes.
• ^J Controls have been strengthened in those operations liable (hypothetically) to generate criminal risks.
• ^J Emphasis has been placed on the implementation of the principle of separation of functions.
• ^J Emphasis has been placed on the supervision and control of Prosegur Cash's behaviour, as well as its policies and procedures.
• ^J The functions and rules of conduct of Prosegur Cash have been updated following any possible changes in current legislation.
• ^J There has been a monitoring and supervision board.

All this web of risk reduction rules is only effective if employees are made aware of them. Their involvement is essential to prevent crime.

Prevention of money laundering

Our level of demand in terms of money laundering and terrorist financing is very high due to the activity carried out by the company. Above all, thinking about the logistics of transporting valuable assets. The company adapts its performance to each territory where it is present.

Obviously, we scrupulously comply with the requirements and guidelines of the European Union. In general, we also follow the recommendations of the Financial Action Task Force (FATF) and the best practices that are applied worldwide in this field.

Specifically, as an obligated undertaking in the countries where we conduct our business through local operating companies, we have developed and implemented a money laundering prevention programme that consists of a series of principles to prevent any irregularity and which include: know your client; operation analysis; communication of suspicious transactions; development of training plans and ongoing collaboration with regulators.

One way to reduce this type of bad practice is permanent vigilance. We constantly prepare an Annual Risk Report (IAR). In it, the risks inherent to the activity are periodically identified and the clients' activity is analysed, paying particular attention to their possible exposure to money laundering. All these pages generate a detailed diagnosis of business risk levels, which is evaluated by the Committee for the Prevention of Money Laundering.

The subsequent step is to submit the conclusions reached to the supervision of the Internal Audit department and the control of external auditors. The reports issued are forwarded to the Governing Bodies of Prosegur Cash and are available to the regulator. Workers also assume their share of responsibility through compulsory annual training (Prosegur Corporate University) in this area.

The system for the prevention of money laundering is based on three pillars:

• ^J Identification and knowledge of the client. Different levels of risk are established, applying greater identification and knowledge requirements to those that present greater objective danger. No client is accepted without meeting the requirements established by our policy.
• ^J Monitoring of the commercial relationship. A profile is drawn up for each client that seeks coherence between their operations and the activity they have declared. If in doubt, this disconnection is examined.
• ^J System of communication to regulators. When any alert takes place, whether caused by a change in the profile of client transactions or by other means, such as the internal communications of employees or reports through the Ethics Channel, a file is initiated whose result may entail a communication of suspicious operation to the regulator.

During 2021, 18,820 workers of the Prosegur Group were trained in money laundering prevention compared to 13,708 in 2020.

Privacy

The protection of personal data is a corporate requirement. And an ever greater one. This requirement is highly considered by Prosegur Cash. The result is compliance with the standards that apply in this area in all the countries where the company operates. The aim is to protect the fundamental rights and freedoms of natural persons who intervene in the exercise of their activity.

Among its regulations, the company has a Data Protection Management System, which complies with the requirements established by Regulation (EU) 2016/679 of 27 April 2016 regarding the protection of natural persons with regard to personal data processing and their free circulation (General Data Protection Regulation - GDPR), and Organic Act 3/2018 of 5 December, on the Protection of Personal Data and Guarantee of Digital Rights (LOPDGDD), and are implemented throughout the organisation.

Our Privacy Management System is based on the application of the most rigorous international security and privacy standards (ISO/IEC 27001 and ISO/IEC 27701: 2019). What the company has decided is to express all this information through the Privacy & Compliance Management System (P&CMS) tool. This instrument automatically manages Prosegur Cash privacy. It covers 16 domains. The main ones to comply with privacy regulations.

Under the certainty that the active protection of privacy must adapt to changing environments and the appearance of new potential threats, we have reinforced its internal legislative apparatus. New regulations, policies, procedures and action protocols have been added to it for the exercise of the rights of the stakeholders and management of breaches, among others.

The resulting equation are the so-called Binding Corporate Rules of the Prosegur Cash Group. A legal instrument recognised in article 46 of the GDPR. They are also pending the approval of the European control authorities, as well as the definitive regularisation of international data transfers.

Privacy training

This new regulatory platform requires training. During 2021, in Prosegur Group we have trained our workers in data protection. The teaching was both online and face-to-face. The proposal was to segment this 'classroom' based on the needs of the company's businesses and the different profiles of the organisation. Last year, specific training in this area was offered to 10,000 employees, a figure much higher than the 2,850 in 2020.

Code of Ethics and Conduct

It is part of the core values of our company. The latest version of the Code of Ethics and Conduct was approved by the Board of Directors on 26 April 2017 and is scheduled to be updated for next year.

It is a binding instrument. That is to say, it must be known and complied with by all workers and members of Prosegur Cash governing bodies. It is a guide and, as such, outlines the standards of behaviour and good work of all the company's professionals. It covers aspects such as compliance with the law, respect for human rights and equality and, of course, politeness among employees. These are also those who must collaborate to facilitate its implementation and report (through the Ethics Channel) all possible breaches of which they are aware. It is accessible through the corporate website and is given to all workers when they join our organisation.

At Prosegur Cash, we are not alone in this ethical reference. This is why we have signed and promote the Code of Conduct and Ethics of the International Security Ligue (a global association of security companies with headquarters in Switzerland).

Ethics Channel

At Prosegur Cash, we have a permeable Ethics Channel through which incidents can be reported. Its purpose is to detect irregular, illegal or attitudes contrary to the Code of Ethics and Conduct. Through this Channel, available at the websites of Prosegur Cash, anyone, whether they belong to the company or not, can report these behaviours securely and anonymously The Internal Audit Department is responsible for independently and confidentially evaluating, investigating and resolving any reported incident.

In 2020, the channel was restructured to be sole and global across the organisation. This year we have approved the Ethics Channel Policy in order to regulate its operation. It has also been provided with all the necessary organisational resources. It is a unique tool that adapts to existing government and management needs. The purpose is to comply with the regulations that apply in the different jurisdictions while being faithful to the highest international standards applied to such channels. The purpose is to promote an ethical culture of transparency free from corruption or fraud.

Since the approval and launch of the Ethics Channel at the end of the first quarter of 2020, we have implemented and applied different policies and procedures in order to regulate the channel and guarantee that any communication is treated objectively, independently, anonymously and confidentially, taking all appropriate measures to ensure effective compliance with the Code of Ethics.

The main results obtained from the application of these policies have been:

^J Determining what is considered an incident or irregularity and the preparation of a catalogue (nonexcluding) on issues that can be reported through the Ethics Channel.

• ^J Excluding communications from the management of the channel that deal with issues for which there is a specific channel, such as client or employee service; the unification of the reporting of incidents through a single means enabled as an Ethics Channel on the corporate website and in Prosegur's premises, as well as on the Intranets of the different countries where we operate; and establishing a single management system in which, if a report is received that could be transferred to the Ethics Channel by a route other than that of the channel itself, employees are obliged to inform the Compliance department so that it can be redirected to said channel.
• ^J Creation of the figure of the Ethics Manager as an independent figure who manages the Ethics Channel, continuously controlling incoming complaints and work units, with the aim of ensuring their correct processing and resolution through an objective and structured procedure.
• ^J Establishing various guarantees within the management process, such as the protection of informants; confidentiality and anonymity in communications, establishing the obligation to ensure the protection of the identity of the accused during the process of managing communications, and, where appropriate, after their resolution; the management of conflicts of interest, by which it is guaranteed that the communications received through the Ethics Channel are managed out by an independent, impartial and objective team; the prohibition of retaliation against those who have reported an incident or irregularity through the Ethics Channel, in good faith; the presumption of innocence and professional integrity of the persons reported and persons involved through any communication received through the Ethics Channel.

The conclusion is that the tool has undergone a process of refinement and improvement. This gives it more efficiency in the management and resolution of the communications received through the Channel. Furthermore, the requirements established by Directive (EU) 2019/1937 of the European Parliament and Council of 23 October 2019, are included. These resolutions protect the identity of the complainant and guarantee communications with them.

Contributions to sector-specific associations

Our Code of Ethics and Conduct establishes the duty to act in accordance with the principles of legality, cooperation, truth and transparency

in relations with the authorities, public administrations and regulatory bodies in the countries in which we operate.

Prosegur Cash is a member of industry associations and organisations in order to promote the development of the sector, to improve quality standards and to drive the most advanced public policies.

Among the professional organisations, our presence stands out, in addition to in the aforementioned International Security League, in: European Security Transport Association (ESTA), Asian Cash Management Association (ACMA) and ATM Industry Association (ATMIA).

Moreover, Prosegur Cash is a member of the main sector organisations in the countries in which we are present.

7.2.2. Public administrations and tax contribution

Prosegur Cash does not obtain material public subsidies that warrant breaking down in the Statement of Non-financial Information.

As a multinational company, in Prosegur Cash we contribute to the revitalisation of the economies where we have operations through our contribution to public administrations. Accordingly, our tax strategy is based on OECD (Organisation for Economic Cooperation and Development) guidelines, in compliance with recommendations set forth in the document Base Erosion and Profit Shifting, concerning how to combat tax evasion or reduction and practices tending to shift profits to territories with low or zero tax rates.

The regions are a pivotal axis for the organisation and are represented in the General Regional Business Areas, which are in charge of commercial negotiations, as well as designing the services required by each client, covering all business lines in each region. Operating segments are defined in accordance with the organisational structure and based on the

similarities between macroeconomic and commercial markets and market operations, as well as on the basis of the commercial negotiations between countries in each region.

Due to these interrelationships between the countries of each region, the information above is shown per geographic region, as it is understood that it reliably represents how Management conducts company business. With this, the main segments are identified in geographic terms as follows:

^J Europe, which includes the following countries: Spain, Germany, Portugal and Luxembourg (despite not being an area where it has any operational activities, it is included due to the existence of the Luxembourg company Pitco Reinsurance, S.A., whose corporate purpose is insurance cover).

• ^J Asia-Oceania-Africa (AOA), comprising the following countries: Australia, India, The Philippines, Singapore (although there is no actual operating activity here, it is included because of the existence of the Singapore company Singpai Pte Ltd., whose corporate purpose is administrative coverage) and Indonesia.
• ^J LatAm, which includes the following countries: Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Guatemala, Nicaragua, El Salvador, Honduras and Ecuador.

The revenue and profits from each of the segments mentioned are as follows:

	Europe	AOA	LatAm	Total
Profit before tax	8,634	(39,044)	137,677	107,267
EUR 8 million of taxes were paid in the European region, 0 in AOA and EUR 31 million in LatAm.
The breakdown of the effective rate by country is as follows:

	Argentina	Brazil	Spain	Peru	Chile	Germany	Paraguay	Other
TFE	61 %	19 %	100 %	33 %	19 %	19 %	11 %	250 %

The breakdown of the effective rate by geographic region is as follows:

	Europe	AOA	LatAm
TFE	70 %	9 %	52 %

The effective rate of each company reflects the tax contribution as a percentage of the profit before income tax of each company. Therefore the tax paid or to be paid year on year for those profits.

The payment of income tax in 2021 was EUR 39 million (2020: EUR 76 million).

This Statement of Non-financial Information does not itemise the profit before income tax by country due to the risk that the disclosure of this information could pose in terms of competitiveness, assuming the flexibility allowed by Directive 2013/34/EU for the protection of sensitive trade information and assurance of fair competition.

8. APPENDICES

8.1. ABOUT THIS REPORT

This report responds to Act 11/2018 concerning non-financial reporting and diversity.

The scope of this Statement of Non-Financial Information is the same as the one for financial reporting and equity method consolidations (Cash India). The tables including quantitative data contain notes indicating the scope of the data reported compared to sales or employees.

Sales and employees in the consolidation scope amount to EUR 1,518.8 million and there are 42,366 employees.

Most of the comparative figures for 2020 are shown for information purposes only and may not cover the same scope as the figures for 2021, although there are exceptions as a result of legal requirements for reporting the evolution.

Taking into account the profit and loss for this year, Prosegur Cash does not consider the following to be material issues:

• ^J Biodiversity: The Company does not have a significant impact on living creatures and the variety of ecosystems.
• ^J Actions to fight the waste of food The company has no related business activity.

The contents of Act 11/2018 and GRI standards were used to compile this report, in accordance with the GRI option chosen, as detailed in the Appendix to this Statement of Non-financial Information.

In accordance with current commercial regulations, this Statement of Non-Financial Information has been verified by EY. The independent Verification Report is attached to this Statement of Non-Financial Information.

8.2. KEY INDICATORS

8.2.1. Environmental matters

KPIs	2020	2021
Emissions
Direct CO2 emissions (t)	112,628 T	125,462 T
Indirect CO2 emissions (t)	12,785 T	11,553 T
Waste
Non-hazardous waste managed (t)	1,655 T	1,605 T
Hazardous waste managed (t)	82 T	92 T
Consumptions
Electricity consumption (MWh)	53,470 MWh	49,865 MWh
Fuel (millions of litres)	41	46
Natural gas (m3)	150,956	140,211
Paper consumption (t)	628 T	859 T
Number of uniforms distributed	147,755	286,107
Water consumption (m3)	485,920	398,815
Consumption of Operational Plastics (t)	1,577 T	1,362 T

A. The scope of these KPIs covers 93%. The scope excludes new M&A acquisitions during the year, disinvestments and the countries in which business are equity-accounted.

B. Direct emissions include those derived from the direct consumption of energy (petrol, diesel or natural gas) and correspond to scope 1. To calculate these emissions, the emission factors available in the UK Government GHG Conversion Factors for Company Reporting have been applied.

C. Indirect emissions include those from electricity consumption and correspond to scope 2. To calculate these emissions, the emission factors of the International Energy Agency (IEA) have been applied.

D. Information is provided exclusively on the withdrawal of water from the public network.

8.2.2. Social and employment matters

Employees and professional development

		Scope	Total	Spain	Portugal	Germany		Australia Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia	Guatemala	El Salvador		Honduras Nicaragua	Ecuador
Total no. of employees			42,366	2,442	582	3,953	893	547	955	13,403	6,650	1,864	475	774	3,202	14	3,816	624	247	483	93	1,349
	Summary of total no. of employees
	Man		31,476	1,853	514	3,291	610	537	584	10,472	4,348	1,367	408	677	2,045	9	2,344	554	180	388	71	1,224
Gender	Woman	100%	10,890	589	68	662	283	10	371	2,931	2,302	497	67	97	1,157	5	1,472	70	67	95	22	125
	Less than 30 years		7,701	80	17	327	110	311	461	1,697	1,562	208	9	169	993	1	1,117	204	101	76	31	227
Age	30 to 50 years	100%	25,903	1,043	392	1,908	378	233	440	9,057	4,322	1,010	295	574	1,971	11	2,477	350	120	344	58	920
	More than 50 years		8,762	1,319	173	1,718	405	3	54	2,649	766	646	171	31	238	2	222	70	26	63	4	202
	Executives and Managers		322	50	4	16	6	3	8	118	50	7	4	7	9	6	14	8	0	4	0	8
Professional	Heads, supervisors and coordinators		1,273	91	2	83	27	19	22	357	292	129	10	24	57	1	96	5	2	26	1	29
category	Analysts and office clerks	100%	3,821	209	6	76	42	11	57	1,127	958	225	191	97	393	4	143	76	39	57	18	92
	Operational		36,950	2,092	570	3,778	818	514	868	11,801	5,350	1,503	270	646	2,743	3	3,563	535	206	396	74	1,220
	Average number of employees per year
	Operational		39,676	2,346	610	3,720	861	492	941	13,435	5,786	1,434	276	727	2,950	0	3,565	535	191	434	83	1,291
	Man		29,742	1,809	502	3,108	598	491	577	10,621	3,643	1,067	275	637	1,937	0	2,223	477	143	359	67	1,208
Employee	Woman		9,933	536	107	612	263	1	364	2,814	2,143	367	1	90	1,013	0	1,342	58	48	75	16	83
type	Indirect	100%	3,366	187	12	150	80	33	94	582	899	433	205	28	142	14	222	57	49	49	10	121
	Man		2,262	126	9	114	37	25	50	343	734	314	138	18	61	9	105	47	32	29	4	67
	Woman		1,104	60	3	36	43	8	44	239	165	119	67	10	81	5	117	10	17	20	6	54
	Number of employees per types of contracts
	Man		31,476	1,853	514	3,291	610	537	584	10,472	4,348	1,367	408	677	2,045	9	2,344	554	180	388	71	1,224
	Indefinite		29,153	1,746	445	2,652	327	9	584	10,360	4,348	1,282	408	631	1,621	9	2,344	524	180	388	71	1,224
Gender	Temporary	100%	2,323	107	69	639	283	528	0	112	0	85	0	46	424	0	0	30	0	0	0	0
	Woman		10,890	589	68	662	283	10	371	2,931	2,302	497	67	97	1,157	5	1,472	70	67	95	22	125
	Indefinite Temporary		9,791 1,099	568 21	54 14	537 125	108 175	4 6	371 0	2,786 145	2,302 0	394 103	67 0	94 3	719 438	5 0	1,472 0	68 2	0 67	95 0	22 0	125 0
	Less than 30 years		7,701	80	17	327	110	311	461	1,697	1,562	208	9	169	993	1	1,117	204	101	76	31	227
	Indefinite Temporary		6,155 1,546	65 15	1 16	115 212	32 78	0 311	461 0	1,440 257	1,562 0	144 64	9 0	158 11	431 562	1 0	1,117 0	184 20	101 0	76 0	31 0	227 0
	30 to 50 years		25,747	1,043	392	1,908	378	233	440	9,057	4,166	1,010	295	574	1,971	11	2,477	350	120	344	58	920
Age	Indefinite	100%	24,422	1,021	329	1,505	199	13	440	9,057	4,166	910	295	539	1,680	11	2,477	338	120	344	58	920
	Temporary		1,325	22	63	403	179	220	0	0	0	100	0	35	291	0	0	12	0	0	0	0
	More than 50 years		8,918	1,319	173	1,718	405	3	54	2,649	922	646	171	31	238	2	222	70	26	63	4	202
	Indefinite		8,433	1,228	169	1,569	204	0	54	2,649	922	622	171	28	229	1	222	70	26	63	4	202
	Temporary		485	91	4	149	201	3	0	0	0	24	0	3	9	1	0	0	0	0	0	0
	Executives and Managers		322	50	4	16	6	3	8	118	50	7	4	7	9	6	14	8	0	4	0	8
	Indefinite		319	50	4	14	6	3	8	118	50	7	4	7	9	5	14	8	0	4	0	8
	Temporary		3	0	0	2	0	0	0	0	0	0	0	0	0	1	0	0	0	0	0	0
	Heads, supervisors and coordinators		1,320	91	2	83	27	19	22	357	292	129	10	73	57	1	96	5	2	26	1	27
	Indefinite		1,289	90	2	80	26	9	22	357	292	122	10	67	54	1	96	5	2	26	1	27
Professional category	Temporary	100%	31	1	0	3	1	10	0	0	0	7	0	6	3	0	0	0	0	0	0	0
	Analysts and office clerks Indefinite		3,795 3,429	209 205	6 6	76 73	42 36	11 1	57 57	1,127 870	958 958	225 220	191 191	54 51	393 315	4 4	143 143	76 76	39 39	57 57	18 18	109 109
	Temporary		366	4	0	3	6	10	0	257	0	5	0	3	78	0	0	0	0	0	0	0
	Operational		36,929	2,092	570	3,778	818	514	868	11,801	5,350	1,503	270	640	2,743	3	3,563	535	206	396	74	1,205
	Indefinite		33,973	1,969	487	3,022	367	0	868	11,801	5,350	1,327	270	600	1,962	3	3,563	503	206	396	74	1,205
	Temporary		2,956	123	83	756	451	514	0	0	0	176	0	40	781	0	0	32	0	0	0	0

		Scope	Total	Spain	Portugal	Germany		Australia Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia	Guatemala	El Salvador		Honduras Nicaragua	Ecuador
Yearly contract average
	Man		30,601	1,936	78	3,397	634	517	627	10,964	3,734	1,608	0	655	2,027	9	2,328	201	175	388	71	1,253
	Indefinite full time		27,674	1,758	25	2,527	344	9	627	10,671	3,734	1,380	0	610	1,586	9	2,328	181	174	388	71	1,253
Gender	Indefinite part time		503	57	0	259	0	0	0	182	0	1	0	0	3	0	0	0	1	0	0	0
	Temporary full time		1,736	30	42	432	0	508	0	1	0	225	0	44	434	0	0	20	0	0	0	0
	Temporary part time	100%	688	91	11	179	290	0	0	110	0	2	0	1	4	0	0	0	0	0	0	0
	Woman		9,695	597	4	698	307	8	408	3,053	870	689	0	99	1,147	5	1,459	37	65	95	22	133
	Indefinite full time		8,173	525	1	385	122	4	408	2,809	870	451	0	96	702	5	1,459	25	61	95	22	133
	Indefinite part time		368	52	0	182	0	0	0	121	0	0	0	0	9	0	0	0	4	0	0	0
	Temporary full time		786	10	3	88	0	4	0	4	0	238	0	3	424	0	0	12	0	0	0	0
	Temporary part time		369	10	0	43	185	0	0	119	0	0	0	0	12	0	0	0	0	0	0	0
	Less than 30 years		6,539	87	13	282	108	272	435	1,831	436	320	0	169	1,001	1	1,010	149	98	76	31	221
	Indefinite full time		4,863	61	0	86	29	0	435	1,496	436	180	0	158	417	1	1,010	129	98	76	31	221
	Indefinite part time		150	14	0	25	0	0	0	101	0	3	0	0	8	0	0	0	0	0	0	0
	Temporary full time		1,158	12	13	128	0	272	0	5	0	135	0	10	563	0	0	20	0	0	0	0
	Temporary part time		368	1	0	43	79	0	0	230	0	2	0	1	13	0	0	0	0	0	0	0
	30 to 50 years		24,840	1,123	63	1,950	401	249	538	9,458	3,276	1,204	0	555	1,940	11	2,526	86	117	344	58	942
	Indefinite full time		22,929	1,049	22	1,379	212	13	538	9,270	3,276	937	0	520	1,647	11	2,526	74	112	344	58	942
Age	Indefinite part time	100%	436	52	0	178	0	0	0	188	0	9	0	0	4	0	0	0	5	0	0	0
	Temporary full time		1,194	21	33	322	0	236	0	0	0	250	0	35	285	0	0	12	0	0	0	0
	Temporary part time		281	2	9	71	189	0	0	0	0	8	0	0	3	0	0	0	0	0	0	0
	More than 50 years		8,917	1,322	6	1,863	432	4	62	2,727	892	773	0	30	234	2	251	3	25	63	4	223
	Indefinite full time		8,037	1,174	4	1,446	225	0	62	2,713	892	700	0	27	225	2	251	0	25	63	4	223
	Indefinite part time		299	43	0	238	0	0	0	14	0	3	0	0	0	0	0	0	0	0	0	0
	Temporary full time		164	7	0	70	0	4	0	0	0	68	0	3	9	0	0	3	0	0	0	0
	Temporary part time		418	98	2	109	207	0	0	0	0	2	0	0	0	0	0	0	0	0	0	0
	Executives and Managers		282	50	0	30	7	4	8	120	3	8	0	7	12	6	14	1	0	4	0	8
	Indefinite full time		274	48	0	25	7	3	8	120	3	8	0	7	12	6	14	1	0	4	0	8
	Indefinite part time		5	2	0	3	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	Temporary full time		3	0	0	2	0	1	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	Temporary part time		0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	Heads, supervisors and coordinators		1,029	89	0	87	33	20	22	367	35	142	0	24	59	0	96	0	2	26	1	27
	Indefinite full time		982	82	0	77	32	9	22	367	35	131	0	22	54	0	96	0	2	26	1	27
	Indefinite part time		13	6	0	7	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	Temporary full time		31	0	0	2	0	11	0	0	0	11	0	2	5	0	0	0	0	0	0	0
	Temporary part time		3	1	0	1	1	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Professional category	Analysts and office clerks	100%	2,776	218	1	109	44	10	65	1,100	101	257	0	94	369	5	152	22	38	57	18	116
	Indefinite full time		2,388	209	1	90	35	1	65	858	101	236	0	88	297	5	152	22	38	57	18	116
	Indefinite part time		27	5	0	13	0	0	0	8	0	2	0	0	0	0	0	0	0	0	0	0
	Temporary full time		115	0	0	4	0	9	0	5	0	18	0	6	73	0	0	0	0	0	0	0
	Temporary part time		246	5	0	2	9	0	0	230	0	1	0	0	0	0	0	0	0	0	0	0
	Operational		36,210	2,175	81	3,869	857	491	940	12,430	4,465	1,890	0	629	2,734	3	3,525	215	200	396	74	1,235
	Indefinite full time		32,190	1,945	26	2,720	392	0	940	12,135	4,465	1,442	0	589	1,925	3	3,525	183	195	396	74	1,235
	Indefinite part time		839	96	0	418	0	0	0	295	0	13	0	0	12	0	0	0	5	0	0	0
	Temporary full time		2,365	39	46	512	0	491	0	0	0	424	0	40	781	0	0	32	0	0	0	0
	Temporary part time		816	95	10	219	465	0	0	0	0	11	0	0	16	0	0	0	0	0	0	0

Number of employees per types of Working Day

	Man		31,477	1,853	514	3,291	610	537	584	10,472	4,348	1,368	408	677	2,045	9	2,344	554	180	388	71	1,224
Gender	Full time		30,396	1,736	510	2,941	327	537	584	10,161	4,343	1,367	408	676	2,038	9	2,344	554	178	388	71	1,224
	Part time		1,081	117	4	350	283	0	0	311	5	1	0	1	7	0	0	0	2	0	0	0
	Woman	100%	10,889	589	68	662	283	10	371	2,931	2,302	496	67	97	1,157	5	1,472	70	67	95	22	125
	Full time		10,207	543	66	471	108	10	371	2,702	2,295	495	67	97	1,134	5	1,472	70	59	95	22	125
	Part time		682	46	2	191	175	0	0	229	7	1	0	0	23	0	0	0	8	0	0	0
	Less than 30 years		7,701	80	17	327	110	311	461	1,697	1,562	208	9	169	993	1	1,117	204	101	76	31	227
	Full time		7,195	68	17	272	32	311	461	1,371	1,558	208	9	168	972	1	1,117	204	92	76	31	227
	Part time		506	12	0	55	78	0	0	326	4	0	0	1	21	0	0	0	9	0	0	0
	30 to 50 years		25,903	1,043	392	1,908	378	233	440	9,057	4,322	1,010	295	574	1,971	11	2,477	350	120	344	58	920
Age	Full time	100%	25,263	1,007	387	1,708	199	233	440	8,857	4,314	1,008	295	574	1,962	11	2,477	350	119	344	58	920
	Part time		640	36	5	200	179	0	0	200	8	2	0	0	9	0	0	0	1	0	0	0
	More than 50 years		8,762	1,319	173	1,718	405	3	54	2,649	766	646	171	31	238	2	222	70	26	63	4	202
	Full time		8,145	1,204	172	1,432	204	3	54	2,635	766	646	171	31	238	2	222	70	26	63	4	202
	Part time		617	115	1	286	201	0	0	14	0	0	0	0	0	0	0	0	0	0	0	0
	Executives and Managers		322	50	4	16	6	3	8	118	50	7	4	7	9	6	14	8	0	4	0	8
	Full time		320	48	4	16	6	3	8	118	50	7	4	7	9	6	14	8	0	4	0	8
	Part time		2	2	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	Heads, supervisors and coordinators		1,320	91	2	83	27	19	22	357	292	129	10	73	57	1	96	5	2	26	1	27
	Full time		1,307	85	2	77	26	19	22	357	292	129	10	73	57	1	96	5	2	26	1	27
	Part time		13	6	0	6	1	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Professional category	Analysts and office clerks	100%	3,795	209	6	76	42	11	57	1,127	958	225	191	54	393	4	143	76	39	57	18	109
	Full time		3,506	202	6	63	36	11	57	867	958	223	191	53	393	4	143	76	39	57	18	109
	Part time		289	7	0	13	6	0	0	260	0	2	0	1	0	0	0	0	0	0	0	0
	Operational		36,929	2,092	570	3,778	818	514	868	11,801	5,350	1,503	270	640	2,743	3	3,563	535	206	396	74	1,205
	Full time		35,470	1,944	564	3,256	367	514	868	11,521	5,338	1,503	270	640	2,713	3	3,563	535	196	396	74	1,205
	Part time		1,459	148	6	522	451	0	0	280	12	0	0	0	30	0	0	0	10	0	0	0

		Scope	Total	Spain	Portugal	Germany		Australia Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia			Guatemala El Salvador Honduras Nicaragua		Ecuador
Number of dismissals
Gender	Man Woman	100%	2,582 902	107 31	35 37	247 62	18 8	42 1	13 8	1,559 548	15 0	48 19	6 1	111 19	49 63	1 1	177 78	62 7	10 5	6 2	1 1	75 11
	Less than 30 years		716	13	23	51	4	24	11	349	6	17	0	17	75	0	73	32	11	2	0	8
Age	30 to 50 years More than 50 years	100%	2,012 756	44 81	46 3	174 84	11 11	16 3	10 0	1,240 518	8 1	45 5	3 4	107 6	36 1	1 1	173 9	36 1	3 1	5 1	1 1	53 25
Professional category	Executives and Managers Heads, supervisors and coordinators Analysts and office clerks Operational	100%	19 69 321 3,075	2 4 12 120	0 0 2 70	3 4 2 300	5 4 3 14	3 0 1 39	0 0 18 3	2 41 232 1,832	0 2 5 8	0 1 2 64	0 0 1 6	1 2 9 118	0 1 3 108	0 0 2 0	1 7 6 241	1 2 7 59	0 0 0 15	0 0 4 4	0 0 0 2	1 1 12 72
Number of recruits
Gender	Man Woman	100%	3,809 2,721	217 59	76 6	343 73	59 106	144 5	24 12	754 598	54 12	213 181	0 0	161 17	420 772	1 3	937 745	201 37	41 32	43 28	31 17	90 18
Age	Less than 30 years 30 to 50 years	100%	3,357 2,900	39 171	15 60	130 214	49 79	124 25	18 18	678 654	20 42	115 234	0 0	70 107	896 294	0 3	864 807	149 86	67 5	43 27	22 25	58 49
	More than 50 years		273	66	7	72	37	0	0	20	4	45	0	1	2	1	11	3	1	1	1	1
Professional category	Executives and Managers Heads, supervisors and coordinators Analysts and office clerks Operational	100%	23 103 673 5,731	3 3 13 257	0 0 1 81	0 31 4 381	10 5 25 125	1 5 10 133	0 1 32 3	3 9 400 940	0 4 24 38	0 16 24 354	0 0 0 0	1 6 16 155	1 5 42 1,144	0 0 4 0	0 7 41 1,634	1 4 3 230	0 1 4 68	0 3 13 55	0 1 5 42	3 2 12 91
	Breakdown of employees by professional category
	Executives and Managers Man		321 286	50 44	4 4	16 15	6 6	3 2	8 6	118 114	49 41	7 6	4 4	7 5	9 9	6 5	14 11	8 7	0 0	4 2	0 0	8 5
	Woman Heads, supervisors and coordinators Man		35 1,274 973	6 91 66	0 2 2	1 83 73	0 27 21	1 19 14	2 22 17	4 357 284	8 292 234	1 129 96	0 10 6	2 24 16	0 57 42	1 1 1	3 96 67	1 5 5	0 2 1	2 26 3	0 4 2	3 27 23
Professional category	Woman Analysts and office clerks Man	100%	301 3,836 2,204	25 209 124	0 6 3	10 76 48	6 42 13	5 11 10	5 57 22	73 1,127 525	58 959 654	33 225 129	4 191 129	8 97 74	15 393 224	0 4 0	29 143 72	0 76 53	1 39 29	23 57 34	2 15 9	4 109 52
	Woman Operational Man Woman		1,632 36,935 27,991 8,939	85 2,092 1,619 473	3 570 505 65	28 3,778 3,155 623	29 818 573 245	1 514 511 3	35 868 539 329	602 11,801 9,549 2,252	305 5,350 3,419 1,931	96 1,503 1,136 367	62 270 269 1	23 646 582 64	169 2,743 1,770 973	4 3 3 0	71 3,563 2,194 1,369	23 535 489 46	10 206 145 56	23 396 329 67	6 74 60 14	57 1,205 1,144 61
	Executives and Managers		322	50	4	16	6	3	8	118	50	7	4	7	9	6	14	8	0	4	0	8
	Less than 30 years 30 to 50 years More than 50 years		0 181 141	0 28 22	0 2 2	0 9 7	0 3 3	0 3 0	0 2 6	0 67 51	0 22 28	0 6 1	0 2 2	0 4 3	0 8 1	0 4 2	0 10 4	0 5 3	0 0 0	0 2 2	0 0 0	0 4 4
	Heads, supervisors and coordinators Less than 30 years		1,274 51	91 0	2 0	83 2	27 0	19 2	22 0	357 27	292 7	129 2	10 0	24 3	57 0	1 0	96 6	5 1	2 0	26 1	4 0	27 0
	30 to 50 years More than 50 years		879 344	50 41	1 1	40 41	18 9	17 0	12 10	270 60	208 77	75 52	6 4	18 3	48 9	1 0	70 20	1 3	2 0	19 6	4 0	19 8
Professional category	Analysts and office clerks Less than 30 years	100%	3,835 864	209 10	6 0	76 6	42 9	11 4	57 15	1,127 442	958 162	225 22	191 5	97 30	393 59	4 0	143 42	76 17	39 10	57 6	15 2	109 23
	30 to 50 years		2,388	114	2	37	24	7	34	576	679	140	129	61	289	4	86	53	24	46	13	70
	More than 50 years Operational		583 36,935	85 2,092	4 570	33 3,778	9 818	0 514	8 868	109 11,801	117 5,350	63 1,503	57 270	6 646	45 2,743	0 3	15 3,563	6 535	5 206	5 396	0 74	16 1,205
	Less than 30 years 30 to 50 years		6,723 22,362	70 851	17 387	319 1,822	101 333	305 206	383 455	1,228 8,144	1,393 3,257	184 789	4 158	136 491	934 1,626	1 2	1,069 2,311	186 291	91 94	69 277	29 41	204 827
	More than 50 years		7,850	1,171	166	1,637	384	3	30	2,429	700	530	108	19	183	0	183	58	21	50	4	174
Number of employees with disabilities
	Number of persons with disabilities Man	100%	460 370	18 14	5 4	223 194	0 0	0 0	0 0	137 98	2 1	28 26	0 0	1 1	5 3	0 0	21 11	0 0	0 0	0 0	0 0	20 18
	Woman Percentage of persons with disabilities		90 — %	4 — %	1 — %	29 — %	0 — %	0 — %	0 — %	39 — %	1 — %	2 — %	0 — %	0 — %	2 — %	0 — %	10 — %	0 — %	0 — %	0 — %	0 — %	2 — %
Number of immigrant employees
	Number of immigrants on staff	100%	730	24	4	555	4	2	1	2	69	32	10	13	1	1	6	4	0	0	0	2
	Percentage of immigrants on staff		2 %	1 %	1 %	14 %	— %	— %	— %	— %	1 %	2 %	2 %	2 %	— %	7 %	— %	1 %	— %	— %	— %	— %
	Number of executives from the local community	100%	273	50	0	2	4	1	7	117	47	6	1	3	9	5	11	4	0	0	0	6
	Percentage of senior managers from the local community		85 %	100 %	— %	13 %	67 %	33 %	88 %	99 %	94 %	86 %	25 %	43 %	100 %	83 %	79 %	50 %	— %	— %	— %	75 %

		Scope	Total	Spain	Portugal	Germany		Australia Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia		Guatemala El Salvador Honduras Nicaragua			Ecuador
Average pay in Euro
Gender	Man	100%	12,856	28,596	15,313	35,129	41,609	3,200	3,426	6,773	12,687	12,937	15,466	6,160	9,243	41,589	4,314	6,215	6,841	9,845	5,478	5,363
	Woman		9,222	20,057	11,836	25,933	39,152	9,654	3,426	5,233	10,521	7,386	16,316	5,314	5,500	10,067	3,192	6,087	4,243	8,145	3,958	5,376
	Less than 30 years		6,779	17,753	12,093	20,183	37,769	3,048	3,426	4,611	9,562	6,021	11,121	5,455	5,201	7,288	3,192	5,196	5,303	7,778	4,703	5,246
Age	30 to 50 years	100%	10,973	23,968	15,313	33,904	41,565	4,062	3,426	6,494	12,275	11,221	15,624	6,212	8,954	11,793	3,820	6,522	6,926	9,794	5,452	5,387
	More than 50 years		18,746	29,192	15,313	34,231	41,319	4,358	9,711	7,014	13,649	13,513	16,216	7,447	11,025	53,178	4,972	6,781	7,081	10,046	6,406	5,438
	Executives and Managers		59,117	78,743	52,895	92,800	179,141	61,042	27,473	31,150	87,806	83,238	64,334	53,875	81,636	71,774	49,141	52,772	0	43,897	0	27,356
	Man		60,064	81,045	52,895	94,600	179,141	60,796	27,418	31,150	85,910	87,792	64,334	53,808	81,636	78,782	48,692	60,206	0	112,720	0	36,596
	Woman		46,849	72,687	0	51,585	0	61,042	31,036	34,459	45,669	54,335	0	54,991	0	34,402	50,079	45,339	0	38,525	0	18,117
	Heads, supervisors and coordinators		22,240	46,886	35,601	56,086	85,833	10,246	13,749	12,256	19,003	19,094	31,865	11,532	26,882	15,825	12,341	24,669	43,654	12,672	17,123	7,487
	Man		22,941	46,499	35,601	56,590	91,509	9,796	13,690	12,427	19,617	18,629	31,865	15,191	27,646	15,825	13,084	24,669	29,777	12,744	0	7,436
	Woman		19,685	47,075	0	50,590	68,038	12,444	16,469	11,238	17,666	19,258	29,848	9,134	24,978	0	8,638	0	57,532	11,378	17,123	9,468
Professional category	Analysts and office clerks	100%	11,257	27,890	19,709	37,743	44,444	3,933	4,295	5,859	12,715	12,845	16,393	6,292	9,493	9,731	6,067	8,381	7,057	8,994	6,603	5,719
	Man		12,193	30,116	20,913	40,370	45,080	3,863	4,401	6,314	12,936	13,503	16,786	6,479	10,861	0	6,395	8,652	7,123	9,651	7,361	5,813
	Woman		9,918	24,517	15,103	29,488	44,390	7,785	4,253	5,457	12,191	12,064	15,741	5,314	7,932	9,731	5,882	6,989	6,172	6,860	4,679	5,665
	Operational		11,771	25,953	15,313	33,324	40,519	3,200	3,426	6,271	12,087	10,893	13,523	5,984	6,661	7,288	3,419	6,033	6,153	9,545	4,937	5,329
	Man		12,732	28,189	15,313	34,794	41,450	3,200	3,426	6,657	12,542	12,499	13,518	6,090	9,028	7,288	3,915	6,040	6,773	9,804	5,449	5,337
	Woman		9,041	19,364	11,836	25,659	37,730	196	3,426	5,138	10,187	5,393	17,453	5,218	5,383	0	3,192	5,381	3,814	8,145	1,773	5,246

Wage gap

Wage gap	Wage gap	100%	12.1 %	9.3 %	23.6 %	26.0 %	8.4 %	85.2 %	(0.4) %	4.1 %	11.8 %	14.7 %	(13.1) %	17.6 %	10.6 %	52.7 %	21.4 %	13.6 %	37.8 %	18.4 %	60.7 %	1.4 %
	Executives and Managers		16.0 %	22.0 %	100.0 %	45.0 %	100.0 %	— %	(13.0) %	(16.0) %	13.0 %	38.0 %	100.0 %	(2.0) %	100.0 %	56.0 %	53.0 %	25.0 %	— %	66.0 %	— %	50.0 %
	Heads, supervisors and coordinators		9.0 %	11.0 %	100.0 %	11.0 %	26.0 %	(27.0) %	(20.0) %	— %	— %	(23.0) %	6.0 %	40.0 %	4.0 %	100.0 %	30.0 %	100.0 %	(93.0) %	11.0 %	— %	(27.0) %
Professional category	Analysts and office clerks	100%	12.0 %	13.0 %	28.0 %	27.0 %		2.0 % (102.0) %	3.0 %	15.0 %	5.0 %	11.0 %	6.0 %	18.0 %	24.0 %	— %	17.0 %	20.0 %	13.0 %	29.0 %	36.0 %	3.0 %
	Operational		11.0 %	9.0 %	23.0 %	26.0 %	7.0 %	94.0 %	— %	3.0 %	14.0 %	18.0 %	(29.0) %	14.0 %	8.0 %	100.0 %	21.0 %	12.0 %	44.0 %	17.0 %	67.0 %	2.0 %

Trade union representation

Number of employees who are trade union members		12,219	689	169	1,142	0	0	0	3,581	3,850	1,616	403	0	656	0	113	0	0	0	0	0
Percentage of employees who are trade union members	100%	29 %	28 %	29 %	29 %	— %	— %	— %	27 %	58 %	87 %	85 %	— %	20 %	— %	3 %	— %	— %	— %	— %	— %

Bargaining agreements

Number of employees covered by a bargaining agreement		35,486	2,442	582	3,808	0	0	0	13,403	5,383	1,616	403	774	2,516	0	3,254	0	0	0	0	1,305
Percentage of employees covered by a bargaining agreement	100%	84 %	100 %	100 %	96 %	— %	— %	— %	100 %	81 %	87 %	85 %	100 %	79 %	— %	85 %	— %	— %	— %	— %	97 %

Number of workers' representatives

Number of employees elected by employees as workers' representatives (both union and individual)		2,122	149	9	0	0	0	0	1,673	122	31	9	0	21	0	97	0	0	0	0	11
Percentage of employees elected by employees as workers' representatives (both union and individual)	100%	5 %	6 %	2 %	— %	— %	— %	— %	12 %	2 %	2 %	2 %	— %	1 %	— %	3 %	— %	— %	— %	— %	1 %

Number of people with work-life balance

Number of employees with some benefit associated with work-life balance		119	59	0	0	0	0	0	0	0	18	0	42	0	0	0	0	0	0	0	0
Percentage of employees with work-life balance	100%	— %	2 %	— %	— %	— %	— %	— %	— %	— %	1 %	— %	5 %	— %	— %	— %	— %	— %	— %	— %	— %

Total number of training hours imparted

	Man		534,525	27,512	1,941	5,340	5,157	344	0	254,408	74,737	38,599	1,524	11,482	44,410	345	37,606	2,138	531	2,141	401	25,909
Gender	Woman	100%	187,136	5,535	13	1,345	608	0	0	69,497	66,892	16,526	351	1,040	2,128	212	16,895	918	270	638	255	4,013

		Scope	Total	Spain	Portugal	Germany		Australia Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia			Guatemala El Salvador Honduras Nicaragua		Ecuador
	Executives and Managers		9,325	750	4	104	288	80	0	3,696	1,023	328	108	240	922	256	615	451	0	50	0	409
Professional category	Heads, supervisors and coordinators	100%	39,723	754	0	1,048	23	0	0	11,560	10,744	2,266	474	3,757	594	201	5,026	600	42	961	438	1,235
	Analysts and office clerks		63,069	6,544	40	798	285	0	0	31,247	12,988	2,433	491	811	1,023	100	793	940	305	364	71	3,836
	Operational		609,545	25,000	1,910	4,734	5,169	264	0	277,402	116,874	50,098	802	7,714	43,999	0	48,067	1,065	454	1,402	148	24,443
	Total number of training hours imparted on human rights
Gender	Man Woman	100%	7,356 2,089	35 5	26 0	0 0	0 0	0 0	0 0	4,983 1,259	53 103	0 0	6 3	49 9	4 4	32 24	759 437	81 38	21 14	236 66	18 10	1,054 117
	Executives and Managers		146	0	0	0	0	0	0	44	3	0	3	0	0	38	32	9	0	4	0	13
Professional category	Heads, supervisors and coordinators	100%	574	0	0	0	0	0	0	151	100	0	6	3	2	12	156	25	2	74	16	27
	Analysts and office clerks		821	1	0	0	0	0	0	527	42	0	0	8	6	6	25	33	24	28	3	118
	Operational		7,904	39	26	0	0	0	0	5,519	11	0	0	46	0	0	983	53	9	197	9	1,013
	Total number of training hours imparted on Occupational Safety
	Man		71,951	18,013	110	216	3,936	0	0	12,547	9,472	8,550	31	159	6,330	48	3,977	200	21	228	26	8,087
Gender	Woman	100%	20,411	1,263	0	48	393	0	0	3,565	1,925	6,800	10	7	3,283	30	2,092	85	12	61	12	826
	Executives and Managers		784	32	0	176	24	0	0	156	108	0	1	0	107	43	76	11	0	2	0	49
	Heads, supervisors and coordinators		4,981	36	0	76	22	0	0	457	1,133	1,535	5	108	438	22	844	30	0	58	20	198
Professional category	Analysts and office clerks	100%	9,656	456	0	12	12	0	0	1,664	4,117	1,535	9	8	898	13	103	29	0	35	3	762
	Operational		76,942	18,752	110	0	4,271	0	0	13,835	6,039	12,280	26	50	8,171	0	5,046	216	33	194	15	7,904
Investment in training
	Investment made in employee training (€M)	100%	2.5	0.5	0.0	0.8	0.3	0.0	0.0	0.5	0.1	0.3	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
	Number of employees who receive performance and professional development evaluations regularly
Gender	Man Woman	100%	5,336 1,818	210 118	514 68	0 0	610 283	24 8	16 14	1,010 485	1,445 294	158 87	15 6	574 97	285 181	7 4	195 53	62 22	17 9	51 21	11 7	132 61
	Percentage of employees who receive performance and professional development evaluations regularly
	Man		17.0 %	11.0 %	100.0 %	— %	100.0 %	4.0 %	3.0 %	10.0 %	33.0 %	12.0 %	4.0 %	85.0 %	14.0 %	78.0 %	8.0 %	11.0 %	9.0 %	13.0 %	15.0 %	11.0 %
Gender	Woman	100%	17.0 %	20.0 %	100.0 %	— %	100.0 %	80.0 %	4.0 %	17.0 %	13.0 %	18.0 %	9.0 %	100.0 %	16.0 %	80.0 %	4.0 %	31.0 %	13.0 %	22.0 %	32.0 %	49.0 %
	Number of employees who benefited from maternity or paternity leave
	Man		554	25	17	50	3	8	11	248	61	0	6	24	0	0	46	0	0	0	0	55
Gender	Woman	100%	491	16	3	28	9	0	45	226	7	24	4	12	50	0	50	7	5	2	0	3
	Number of employees who returned to work upon the conclusion of their maternity or paternity leave
	Man		522	23	16	36	0	0	11	248	57	0	6	24	0	0	46	0	0	0	0	55
Gender	Woman	100%	458	15	3	7	2	0	45	226	5	24	4	12	50	0	50	7	3	2	0	3
	Number of employees who returned to work upon the conclusion of their maternity or paternity leave and remained at their jobs for 12 months following their return
	Man		454	23	2	0	3	0	11	228	57	0	6	23	0	0	46	0	0	0	0	55
Gender	Woman	100%	274	15	0	0	5	0	45	78	4	5	4	11	43	0	50	7	2	2	0	3

Turnover Man 5,551 341 70 463 133 93 121 1,771 176 245 11 140 358 1 1,065 187 31 53 21 Gender 100% Woman 3,038 83 61 122 85 5 103 721 42 200 3 26 637 2 822 24 28 20 13 Less than 30 years 2,905 47 30 138 54 64 147 539 42 84 0 36 674 0 782 121 48 20 15 Age 30 to 50 years 100% 4,429 213 85 256 100 31 71 1,424 133 269 7 124 309 3 1,046 88 9 49 18 More than 50 years 1,255 164 16 191 64 3 6 529 43 92 7 6 12 0 59 2 2 4 1 Executives and Managers 56 2 0 5 33 3 2 4 0 1 0 1 1 0 1 1 0 0 0 Heads, supervisors and coordinators 174 4 0 10 13 7 21 48 5 16 0 3 11 1 21 4 0 4 1 Professional category 100% Analysts and office clerks 869 19 2 8 23 8 196 354 44 33 4 10 36 2 56 11 7 19 5 Operational 7,490 399 129 562 149 80 5 2,086 169 395 10 152 947 0 1,809 195 52 50 28 Turnover (terminations/total employees) Man 17.6 % 18.4 % 13.6 % 14.1 % 21.8 % 17.3 % 20.7 % 16.9 % 4.0 % 17.9 % 2.7 % 20.7 % 17.5 % 11.1 % 45.4 % 33.8 % 17.2 % 13.7 % 29.6 % 100.0% Gender Woman 27.9 % 14.1 % 89.7 % 18.4 % 30.0 % 50.0 % 27.8 % 24.6 % 1.8 % 40.2 % 4.5 % 26.8 % 55.1 % 40.0 % 55.8 % 34.3 % 41.8 % 21.1 % 59.1 % Less than 30 years 37.7 % 58.8 % 176.5 % 42.2 % 49.1 % 20.6 % 31.9 % 5.1 % 2.7 % 40.4 % — % 21.3 % 67.9 % — % 70.0 % 59.3 % 47.5 % 26.3 % 48.4 % Age 30 to 50 years 100.0% 17.1 % 20.4 % 21.7 % 13.4 % 26.5 % 13.3 % 16.1 % 13.6 % 3.1 % 26.6 % 2.4 % 21.6 % 15.7 % 27.3 % 42.2 % 25.1 % 7.5 % 14.2 % 31.0 % More than 50 years 14.3 % 12.4 % 9.2 % 11.1 % 15.8 % 100.0 % 11.1 % 5.1 % 5.6 % 14.2 % 4.1 % 19.4 % 5.0 % — % 26.6 % 2.9 % 7.7 % 6.3 % 25.0 % Executives and Managers 17.4 % 4.0 % — % 31.3 % 550.0 % 100.0 % 25.0 % — % — % 14.3 % — % 14.3 % 11.1 % — % 7.1 % 12.5 % — % — % — % Heads, supervisors and coordinators 13.7 % 4.4 % — % 12.0 % 48.1 % 36.8 % 95.5 % 0.5 % 1.7 % 12.4 % — % 12.5 % 19.3 % 100.0 % 21.9 % 80.0 % — % 15.4 % 100.0 % Professional category 100.0% Analysts and office clerks 22.7 % 9.1 % 33.3 % 10.5 % 54.8 % 72.7 % 343.9 % 3.4 % 4.6 % 14.7 % 2.1 % 10.3 % 9.2 % 50.0 % 39.2 % 14.5 % 17.9 % 33.3 % 27.8 % Operational 20.3 % 19.1 % 22.6 % 14.9 % 18.2 % 15.6 % 0.6 % 19.9 % 3.2 % 26.3 % 3.7 % 23.5 % 34.5 % — % 50.8 % 36.4 % 25.2 % 12.6 % 37.8 % Number of days worked by all Prosegur employees Man 73,524,473 3,704,587 1,061,032 4,597,795 1,064,476 1,084,608 1,457,664 28,568,911 8,730,918 2,851,065 861,696 1,700,624 5,049,645 23,031 6,750,720 1,978,080 504,233 968,448 161,987 Gender 100.0% Woman 22,033,874 1,140,064 228,120 776,064 453,562 18,144 926,016 7,742,408 1,422,036 928,241 141,504 243,664 2,785,722 10,872 4,239,360 247,104 187,687 237,120 50,193 Total number of days lost through absence Man 2,582,702 212,945 92,027 426,076 28,745 720 0 517,544 480,614 315,006 43,085 7,424 122,728 1 186,656 90,636 88 2,464 176 Gender 100.0% Woman 914,849 86,041 32,167 73,161 9,880 184 0 153,861 94,980 207,919 7,075 1,480 97,248 0 136,672 8,964 40 80 48 Total number of hours lost due to work accidents and professional illness Man 302,932 27,776 13,082 0 4,203 240 0 15,418 188,110 8,032 1,980 7,216 3,480 0 10,344 0 176 15,888 2,064 Gender 100.0% Woman 44,745 5,011 826 0 2,663 0 0 4,441 17,184 3,224 190 1,464 472 1,416 384 0 208 6,176 992		Scope	Total	Spain	Portugal	Germany		Australia Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia			Guatemala El Salvador Honduras Nicaragua		Ecuador
																						271
																						41
																						64
																						194
																						54
																						2
																						5
																						32
																						273
																						22.1 % 32.8 %
																						28.2 %
																						21.1 %
																						26.7 %
																						25.0 %
																						17.2 %
																						34.8 %
																						22.4 %
																						2,404,954
																						255,994
																						55,768
																						5,048
																						4,923
																						93
	Rate of absenteeism	100.0%	3.7 %	6.2 %	9.6 %	9.3 %	2.5 %	0.1 %	0.0 %	1.8 %	5.7 %	13.8 %	5.0 %	0.5 %	2.8 %	0.0 %	2.9 %	4.5 %	0.0 %	0.2 %	0.1 %	2.3 %

A. The scope of these KPIs excludes the new M&A acquisitions in the year, disinvestments and the countries in which business are equity-accounted.

B. On 31 March 2021, Prosegur Cash sold to its parent company, Prosegur Compañía de Seguridad, certain areas of the added value outsourcing processes and services business (AVOS) for financial institutions and insurance companies, as well as the associated technology.

C. The data are presented at year close (31/12/2021).

D. Indefinite contracts: Work contracts established for an indefinite period of time, in other words without end date. Temporary contracts: Work contracts ending upon the expiry of a pre-set period of time or when a specific job for which a duration has been calculated comes to an end).

E. Number of full-time employees: Number of employees as of 31/12/2021 who, as defined in legislation and national practice on working hours, work a full day. Number of part-time employees: Number of employees as of 31/12/2021 in whose working day the provision of services is agreed for a number of hours per day, week, month or year that is fewer than the working day of a comparable full-time worker.

F. Number of dismissals: Cumulative number from 01/01/2021 to 31/12/2021 of employees whose contract has been annulled by unilateral decision of the employer, including appropriate disciplinary dismissals and failure to pass the trial period.

G. Number of recruits: Accumulated number of employees recruited from 01/01/2021 until 31/12/2021.

H. Disabled employees: Employees as of 31/12/2021 with permanent mental or physical conditions that have been declared as limiting their capacities.

• I. Immigrant employees: Employees at 31/12/2021 from a country other than that where they are employed.
• J. Annual average pay: Median Annual Total Remuneration may include items such as salary, bonuses, share awards, share stock options, non-participating incentive plan compensation, changes in pension value, nonqualified deferred earnings, and any other remuneration.
• K. Wage gap: Consolidated wage gap (weighted median of wage gaps by professional category for the same country). Positive gap indicates the percentage by which the median salary for women is lower than the median salary for men and negative gap indicates the percentage by which the median salary for women is higher than the median salary for men. Calculated on the set of employees whose role is assigned in each of the professional categories described, taking into account the different lines of business to which the group belongs and weighting the number of workers in each case.
• L. People with work-life balance: Number of employees registered as of 31/12/2021 who have some type of adaptations in their working day or work system for the care of children/elders/sick relatives. Examples: temporary reductions in the working day, adaptation of timetables, teleworking or leave of absence.
• M. Hours of training given: Accumulative number of hours of training that employees received face-to-face or online from 01/01/2021 to 31/12/2021.
• N. Total number of training hours given on human rights: Accumulative number of hours of training in connection with human rights that employees received face-to-face or online from 01/01/2021 to 31/12/2021.
• Ñ. Hours of training given on occupational safety: Accumulative number of hours of training on occupational safety that employees received face-to-face or online from 01/01/2021 to 31/12/2021.
• O. Investment in training: Total invested in training (including costs of internal staff and suppliers) in millions of euro.
• P. Number of employees who receive performance and professional development evaluations regularly: Number of registered employees at 31/12/2021 who regularly receive performance and professional development evaluations.
• Q. Rotation: Accumulative number of employees from 01/01/2021 to 31/12/2021 who leave the organisation voluntarily or due to dismissal, retirement or death in service divided by the total number of employees as of 31/12/2021.
• R. Total number of hours lost through absence: Absence is understood as those employees who were absent from work due to any type of disability, not only due to accidents or professional illnesses. It does not include leave of absence (e.g. for training).
• S. Rate of absenteeism: Calculation of the total number of hours lost due to absence between the number of hours worked by all employees.

Health and occupational safety

		Scope	Total	Spain	Portugal	Germany			Australia Indonesia The Philippines Brazil		Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia		Guatemala El Salvador Honduras Nicaragua			Ecuador
	Total number of training hours imparted on occupational safety
	Total		92,362	19,277	110	264	4,329	0	0	16,112	11,397	15,350	41	165	9,613	78	6,069	285	33	289	38	8,913
Gender	Man	95 %	71,951	18,013	110	216	3,936	0	0	12,547	9,472	8,550	31	159	6,330	48	3,977	200	21	228	26	8,087
	Woman		20,411	1,263	0	48	393	0	0	3,565	1,925	6,800	10	7	3,283	30	2,092	85	12	61	12	826
	Total number of occupational accidents
	Total		1,095	106	55	141	23	11	3	127	196	70	6	14	80	0	225	0	4	3	8	23
	Minor accident victims		1,057	106	55	141	22	10	3	114	194	70	6	6	75	0	220	0	3	3	8	21
	Man Woman		945 112	86 20	46 9	127 14	19 3	10 0	3 0	96 18	187 7	57 13	6 0	6 0	70 5	0 0	203 17	0 0	1 2	3 0	7 1	18 3
	Serious accident victims		37	0	0	0	1	1	0	13	2	0	0	8	4	0	5	0	1	0	0	2
Severity	Man	95 %	31	0	0	0	1	1	0	10	2	0	0	7	4	0	3	0	1	0	0	2
	Woman		6	0	0	0	0	0	0	3	0	0	0	1	0	0	2	0	0	0	0	0
	Fatal accident victims		1	0	0	0	0	0	0	0	0	0	0	0	1	0	0	0	0	0	0	0
	Man		1	0	0	0	0	0	0	0	0	0	0	0	1	0	0	0	0	0	0	0
	Woman		0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	Number of days lost owing to occupational accidents
	Total		52,745	6,282	1,806	1,932	109	157	117	1,762	4,840	747	41	1,036	876	0	1,341	0	660	102	193	382
Gender	Man	95 %	50,219	5,321	1,577	1,763	101	157	117	1,305	4,742	560	41	859	805	0	1,293	0	610	102	182	369
	Woman		2,526	961	229	169	8	0	0	457	98	187	0	177	71	0	48	0	50	0	11	13
	Total number of occupational illness cases
	Total		61	0	0	0	0	0	0	0	7	23	0	18	0	0	16	0	0	0	0	0
Gender	Man	95 %	47	0	0	0	0	0	0	0	4	17	0	15	0	0	1	0	0	0	0	0
	Woman		14	0	0	0	0	0	0	0	3	6	0	3	0	0	15	0	0	0	0	0
KPIs
Frequency Rate Incidence Rate Severity Rate Fatality Rate Training Rate		95 %	11.46 25.85 0.55 0.02 2.18

A. The scope of these KPIs excludes the new M&A acquisitions in the year, disinvestments and the countries in which business are equity-accounted.

B. The data are presented at year close (31/12/2021).

C. Minor accident: Number of persons who sustained an accident not considered serious or fatal. Serious accident: Any accident that results in the amputation of a body part; long-bone fractures (femur, tibia, fibular, humerus, radius and ulna); trauma to the head; second and third-degree burns; severe hand injuries, such as crushing or

burns; severe injuries to the backbone with spinal cord involvement; eye injuries that compromise visual sharpness or field of vision or injuries that compromise hearing. Fatal accident: Number of persons who died as a result of conditions deriving from an occupational accident within one year of the current one.

D. Days lost owing to occupational accidents: Number of workdays lost by the injured worker as a result of temporary disability, regardless of whether the position is full- or part-time.

E. Occupational illnesses: Pathological condition acquired as a result of the work or exposure to the setting in which the employee performs occupational tasks.

F. Frequency Rate: Represents the number of occupational accidents that occur per million hours worked.

G. Incidence Rate: Represents the number of occupational accidents that occur per thousand workers.

H. Severity Rate: Number of workdays lost per thousand hours worked.

I. Fatality Rate: Number of fatal accidents that occur per thousand workers.

J. Training Rate: Represents the number of training hours on Safety and Health per worker.

2020 comparative data

		Scope	Total	Spain	Portugal	Germany	Australia	Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia	Central America	Ecuador
Total no. of employees			46,120	4,370	632	4,148	1,001	496	1,145	14,659	6,658	1,913	488	748	3,005	14	3,881	1,407	1,555
	Summary of total no. of employees
	Man		33,715	2,542	509	3,447	664	487	689	11,533	4,417	1,397	418	645	1,984	9	2,391	1,177	1,406
Gender	Woman	100%	12,405	1,828	123	701	337	9	456	3,126	2,241	516	70	103	1,021	5	1,490	230	149
	Less than 30 years		8,357	399	39	323	149	301	629	1,877	1,631	252	16	177	922	1	968	421	252
Age	30 to 50 years More than 50 years	100%	28,356 9,407	2,306 1,665	437 156	2,049 1,776	460 392	190 5	466 50	9,868 2,914	4,361 666	995 666	300 172	545 26	1,882 201	11 2	2,576 337	850 136	1,060 243
	Executives and Managers		389	69	4	29	7	31	11	120	43	7	4	11	8	6	15	17	7
Professional	Heads, supervisors and coordinators	100%	1,277	111	2	55	43	25	17	388	284	19	11	59	55	2	104	67	35
category	Analysts and office clerks		3,090	268	7	97	38	17	84	1,053	456	270	16	39	338	6	173	102	126
	Operational		41,364	3,922	619	3,967	913	423	1,033	13,098	5,875	1,617	457	639	2,604	0	3,589	1,221	1,387
	Average number of employees per year
	Operational		41,722	3,852	642	3,782	845	455	1,041	14,370	4,246	1,605	493	727	3,015	254	3,427	1,407	1,560
	Man		32,433	2,295	521	3,159	591	453	793	11,419	3,671	1,139	423	631	2,084	181	2,403	1,200	1,471
Employee	Woman		9,289	1,558	121	623	254	2	248	2,950	575	467	70	96	932	73	1,024	207	89
type	Indirect	100%	2,863	475	14	150	86	31	112	532	238	460	26	26	142	14	223	176	158
	Man		1,787	288	11	116	39	24	60	335	183	336	18	17	63	9	99	105	84
	Woman		1,076	187	3	34	47	7	52	197	55	124	8	9	79	5	124	71	74
	Number of employees per types of contracts
	Man		33,715	2,542	509	3,447	664	487	689	11,533	4,417	1,397	418	645	1,984	9	2,391	1,177	1,406
Gender	Indefinite		29,358	2,172	439	2,759	334	11	689	11,421	4,417	1,303	418	598	1,520	9	704	1,167	1,397
	Temporary		4,357	370	70	688	330	476	0	112	0	94	0	47	464	0	1,687	10	9
	Woman	100%	12,405	1,828	123	701	337	9	456	3,126	2,241	516	70	103	1,021	5	1,490	230	149
	Indefinite		9,917	1,287	64	548	121	4	456	3,028	2,241	438	70	99	674	5	507	228	147
	Temporary		2,488	541	59	153	216	5	0	98	0	78	0	4	347	0	983	2	2
	Less than 30 years		8,357	399	39	323	149	301	629	1,877	1,631	252	16	177	922	1	968	421	252
	Indefinite		5,876	171	1	119	34	1	629	1,667	1,631	204	16	164	407	1	174	411	246
	Temporary		2,481	228	38	204	115	300	0	210	0	48	0	13	515	0	794	10	6
	30 to 50 years		28,356	2,306	437	2,049	460	190	466	9,868	4,361	995	300	545	1,882	11	2,576	850	1,060
Age	Indefinite	100%	24,729	1,841	350	1,589	229	13	466	9,868	4,361	897	300	510	1,593	11	798	848	1,055
	Temporary		3,627	465	87	460	231	177	0	0	0	98	0	35	289	0	1,778	2	5
	More than 50 years		9,407	1,665	156	1,776	392	5	50	2,914	666	666	172	26	201	2	337	136	243
	Indefinite		8,670	1,447	152	1,599	192	1	50	2,914	666	640	172	23	194	2	239	136	243
	Temporary		737	218	4	177	200	4	0	0	0	26	0	3	7	0	98	0	0
Professional category	Executives and Managers		389	69	4	29	7	31	11	120	43	7	4	11	8	6	15	17	7
	Indefinite		367	68	4	27	7	14	11	120	43	7	4	11	8	6	14	16	7
	Temporary		22	1	0	2	0	17	0	0	0	0	0	0	0	0	1	1	0
	Heads, supervisors and coordinators		1,277	111	2	55	43	25	17	388	284	19	11	59	55	2	104	67	35
	Indefinite		1,184	110	2	52	41	0	17	388	284	19	11	54	32	2	70	67	35
	Temporary	100%	93	1	0	3	2	25	0	0	0	0	0	5	23	0	34	0	0
	Analysts and office clerks		3,090	268	7	97	38	17	84	1,053	456	270	16	39	338	6	173	102	126
	Indefinite		2,678	254	6	93	30	1	84	843	456	255	16	37	276	6	93	102	126
	Temporary		412	14	1	4	8	16	0	210	0	15	0	2	62	0	80	0	0
	Operational		41,364	3,922	619	3,967	913	423	1,033	13,098	5,875	1,617	457	639	2,604	0	3,589	1,221	1,387
	Indefinite		35,046	3,027	491	3,135	377	0	1,033	13,098	5,875	1,460	457	595	1,878	0	1,034	1,210	1,376
	Temporary		6,318	895	128	832	536	423	0	0	0	157	0	44	726	0	2,555	11	11

		Scope	Total	Spain	Portugal	Germany	Australia	Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia	Central America	Ecuador
Yearly contract average
Gender	Man Indefinite full time Indefinite part time Temporary full time Temporary part time Woman Indefinite full time Indefinite part time Temporary full time Temporary part time	100%	27,273 22,399 600 3,629 645 10,025 7,074 956 1,570 425	2,278 2,043 75 102 59 1,476 1,005 156 223 92	23 7 0 16 0 6 2 0 4 0	3,477 2,513 268 525 171 705 367 185 97 56	632 319 0 0 313 305 117 0 0 188	477 11 0 466 0 9 4 0 5 0	703 703 0 0 0 451 451 0 0 0	11,754 11,563 93 4 94 3,147 2,920 146 7 74	348 204 144 0 0 852 396 456 0 0	1,475 1,367 19 89 0 590 486 1 103 0	11 11 0 0 0 1 1 0 0 0	104 49 0 55 0 11 4 0 7 0	2,146 1,532 1 606 8 1,011 656 9 331 15	68 64 0 4 0 42 41 0 1 0	2,502 766 0 1,736 0 1,148 383 0 765 0	1,254 1,229 1 24 0 264 239 2 24 0	22 19 0 3 0 6 2 1 3 0
Age	Less than 30 years Indefinite full time Indefinite part time Temporary full time Temporary part time 30 to 50 years Indefinite full time Indefinite part time Temporary full time Temporary part time More than 50 years Indefinite full time Indefinite part time Temporary full time Temporary part time	100%	6,782 3,924 546 1,936 376 22,154 18,121 685 2,971 377 8,362 7,441 331 275 316	281 120 33 85 43 1,988 1,591 130 189 78 1,486 1,337 68 51 30	10 2 0 8 0 18 6 0 12 0 1 1 0 0 0	309 79 26 152 52 2,029 1,383 189 385 72 1,844 1,419 237 86 102	127 33 0 0 94 437 213 0 0 224 373 189 0 0 184	293 1 0 292 0 188 13 0 175 0 5 1 0 4 0	635 635 0 0 0 479 479 0 0 0 40 40 0 0 0	1,783 1,499 106 10 168 9,962 9,846 116 0 0 3,156 3,139 18 0 0	696 324 372 0 0 492 264 228 0 0 12 7 5 0 0	278 215 3 60 0 1,113 988 15 110 0 674 655 3 16 0	6 6 0 0 0 5 5 0 0 0 1 1 0 0 0	38 20 0 18 0 72 31 0 41 0 5 2 0 3 0	960 359 4 578 20 1,967 1,607 6 351 4 229 221 0 8 0	51 48 0 3 0 47 45 0 2 0 12 12 0 0 0	844 137 0 707 0 2,432 743 0 1,689 0 375 269 0 106 0	453 430 2 21 0 917 904 1 13 0 148 147 0 1 0	19 17 0 2 0 8 3 1 4 0 1 1 0 0 0
Professional category	Executives and Managers Indefinite full time Indefinite part time Temporary full time Temporary part time Heads, supervisors and coordinators Indefinite full time Indefinite part time Temporary full time Temporary part time Analysts and office clerks Indefinite full time Indefinite part time Temporary full time Temporary part time Operational Indefinite full time Indefinite part time Temporary full time Temporary part time	100%	327 300 5 21 0 939 842 7 87 3 2,427 2,023 26 203 175 33,605 26,305 1,505 4,891 903	64 62 1 1 0 106 101 4 0 0 253 234 7 10 1 3,332 2,651 218 314 149	0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 28 8 0 20 0	28 22 4 2 0 55 49 3 2 1 95 83 10 2 0 4,004 2,725 436 617 226	8 8 0 0 0 42 40 0 0 2 34 28 0 0 6 853 348 0 0 505	31 14 0 17 0 25 0 0 25 0 17 1 0 16 0 413 0 0 413 0	3 3 0 0 0 5 5 0 0 0 83 83 0 0 0 1,063 1,063 0 0 0	121 121 0 0 0 393 393 0 0 0 1,026 839 9 10 168 13,360 13,130 231 0 0	12 12 0 0 0 48 48 0 0 0 24 24 0 0 0 1,116 528 588 0 0	7 7 0 0 0 19 19 0 0 0 277 267 0 10 0 1,762 1,560 20 182 0	2 2 0 0 0 0 0 0 0 0 4 4 0 0 0 6 6 0 0 0	1 1 0 0 0 6 4 0 2 0 10 1 0 9 0 98 47 0 51 0	7 7 0 0 0 50 27 0 24 0 296 234 0 62 0 2,804 1,919 10 851 23	7 7 0 0 0 14 14 0 0 0 17 17 0 0 0 72 67 0 5 0	16 16 0 0 0 106 71 0 34 0 174 96 0 78 0 3,354 966 0 2,389 0	18 17 0 1 0 70 70 0 0 0 113 109 0 4 0 1,317 1,270 3 44 0	1 1 0 0 0 0 0 0 0 0 4 2 0 2 0 23 18 0 5 0
	Number of employees per types of Working Day
Gender	Man Full time Part time Woman Full time Part time	100%	33,715 32,427 1,288 12,405 11,234 1,171	2,542 2,237 305 1,828 1,397 431	509 504 5 123 118 5	3,447 3,039 408 701 471 230	664 334 330 337 121 216	487 487 0 9 9 0	689 689 0 456 456 0	11,533 11,309 224 3,126 2,887 239	4,417 4,411 6 2,241 2,233 8	1,397 1,394 3 516 498 18	418 418 0 70 70 0	645 645 0 103 103 0	1,984 1,977 7 1,021 1,001 20	9 9 0 5 5 0	2,391 2,391 0 1,490 1,490 0	1,177 1,177 0 230 227 3	1,406 1,406 0 149 148 1
Age	Less than 30 years Full time Part time 30 to 50 years Full time Part time More than 50 years Full time Part time	100%	8,357 7,677 680 28,356 27,358 998 9,407 8,628 779	399 256 143 2,306 1,952 354 1,665 1,426 239	39 38 1 437 428 9 156 156 0	323 249 74 2,049 1,806 243 1,776 1,455 321	149 34 115 460 229 231 392 192 200	301 301 0 190 190 0 5 5 0	629 629 0 466 466 0 50 50 0	1,877 1,562 315 9,868 9,736 132 2,914 2,898 16	1,631 1,626 5 4,361 4,352 9 666 666 0	252 249 3 995 982 13 666 663 3	16 16 0 300 300 0 172 172 0	177 177 0 545 545 0 26 26 0	922 902 20 1,882 1,875 7 201 201 0	1 1 0 11 11 0 2 2 0	968 968 0 2,576 2,576 0 337 337 0	421 418 3 850 850 0 136 136 0	252 251 1 1,060 1,060 0 243 243 0
Professional category	Executives and Managers Full time Part time Heads, supervisors and coordinators Full time Part time Analysts and office clerks Full time Part time Operational Full time Part time	100%	389 383 6 1,277 1,265 12 3,090 2,839 251 41,364 39,174 2,190	69 67 2 111 105 6 268 253 15 3,922 3,209 713	4 4 0 2 2 0 7 7 0 619 609 10	29 25 4 55 51 4 97 86 11 3,967 3,348 619	7 7 0 43 41 2 38 30 8 913 377 536	31 31 0 25 25 0 17 17 0 423 423 0	11 11 0 17 17 0 84 84 0 1,033 1,033 0	120 120 0 388 388 0 1,053 841 212 13,098 12,847 251	43 43 0 284 284 0 456 454 2 5,875 5,863 12	7 7 0 19 19 0 270 268 2 1,617 1,598 19	4 4 0 11 11 0 16 16 0 457 457 0	11 11 0 59 59 0 39 39 0 639 639 0	8 8 0 55 55 0 338 338 0 2,604 2,577 27	6 6 0 2 2 0 6 6 0 0 0 0	15 15 0 104 104 0 173 173 0 3,589 3,589 0	17 17 0 67 67 0 102 102 0 1,221 1,218 3	7 7 0 35 35 0 126 125 1 1,387 1,387 0

		Scope	Total	Spain	Portugal	Germany	Australia	Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia	Central America	Ecuador
Number of dismissals
Gender	Man Woman	100%	2,934 1,156	148 151	28 3	37 7	19 5	95 3	46 24	1,483 487	8 12	401 268	35 12	139 15	86 57	25 14	225 60	145 35	14 3
Age	Less than 30 years 30 to 50 years More than 50 years	100%	4090 982 2,178 930	299 86 148 65	31 8 23 0	44 26 5 13	24 9 10 5	98 33 61 4	70 39 28 3	1970 305 1,075 590	20 19 1 0	669 177 330 162	47 3 15 29	154 21 129 4	143 91 47 5	39 10 25 4	285 74 184 27	80 84 16	17 1 13 3
Professional category	Executives and Managers Heads, supervisors and coordinators Analysts and office clerks Operational	100%	4090 26 98 306 3,660 4,090	299 9 5 19 266 299	31 0 0 0 31 31	44 0 0 0 44 44	24 0 0 3 21 24	98 6 3 2 87 98	70 0 0 15 55 70	1970 8 52 195 1,715 1,970	20 0 0 0 20 20	669 0 2 38 629 669	47 1 0 1 45 47	154 0 7 7 140 154	143 0 1 3 139 143	39 0 6 4 29 39	285 0 7 14 264 285	2 13 3 162	17 0 2 2 13 17
Number of recruits
Gender	Man Woman	100%	3,404 2,496	445 565	24 12	293 78	135 81	168 4	66 64	621 462	57 134	197 146	11 1	104 11	128 205	68 42	664 597	172 42	251 52
Age	Less than 30 years 30 to 50 years More than 50 years	100%	5900 2,681 2,887 332	1010 297 589 124	36 10 26 0	371 106 207 58	216 68 101 47	172 129 43 0	130 89 41 0	1083 516 546 21	191 155 36 0	343 106 205 32	12 6 5 1	115 38 72 5	333 234 99 0	110 51 48 11	1261 541 702 18	114 95 5	303 221 72 10
Professional category	Executives and Managers Heads, supervisors and coordinators Analysts and office clerks Operational	100%	5900 47 64 410 5,379	1010 9 6 15 980	36 0 1 0 35	371 2 3 4 362	216 2 7 13 194	172 5 0 2 165	130 0 0 13 117	1083 2 10 202 869	191 0 2 2 187	343 0 2 32 309	12 2 0 4 6	115 1 6 10 98	333 0 1 17 315	110 7 9 22 72	1261 2 6 20 1,233	5 11 15 183	303 10 0 39 254
	Breakdown of employees by professional category		5900	1010	36	371	216	172	130	1083	191	343	12	115	333	110	1261		303
Professional category	Executives and Managers Man Woman Heads, supervisors and coordinators Man Woman Analysts and office clerks Man Woman	100%	389 338 51 1,278 1,011 267 3,089 1,716 1,373	69 55 14 111 81 30 268 146 122	4 4 0 2 2 0 7 4 3	29 24 5 55 47 8 97 68 29	7 6 1 43 23 20 38 10 28	31 29 2 25 25 0 17 15 2	11 8 3 17 12 5 84 40 44	120 114 6 388 317 71 1,053 526 527	43 38 5 284 235 49 456 321 135	7 6 1 19 17 2 270 164 106	4 4 0 11 6 5 16 11 5	11 9 2 59 48 11 39 23 16	8 8 0 55 41 14 338 184 154	6 5 1 3 1 2 5 3 2	15 12 3 104 72 32 173 79 94	17 11 6 67 55 12 102 59 43	7 5 2 35 29 6 126 63 63
	Operational Man Woman		41,364 30,660 10,704	3,922 2,260 1,662	619 499 120	3,967 3,308 659	913 625 288	423 423 0	1,033 629 404	13,098 10,576 2,522	5,875 3,823 2,052	1,617 1,210 407	457 397 60	639 565 74	2,604 1,751 853	0 0 0	3,589 2,228 1,361	1,221 1,057 164	1,387 1,309 78
Professional category	Executives and Managers Less than 30 years 30 to 50 years More than 50 years Heads, supervisors and coordinators Less than 30 years 30 to 50 years More than 50 years Analysts and office clerks Less than 30 years 30 to 50 years More than 50 years Operational Less than 30 years	100%	389 2 241 146 1,278 78 925 275 3,089 702 1,912 475 41,364 7,575	69 0 46 23 111 3 70 38 268 30 160 78 3,922 366	4 0 3 1 2 0 1 1 7 0 3 4 619 39	29 0 12 17 55 2 28 25 97 8 50 39 3,967 313	7 0 3 4 43 2 31 10 38 7 20 11 913 140	31 2 28 1 25 4 21 0 17 8 9 0 423 287	11 0 3 8 17 0 7 10 84 35 39 10 1,033 594	120 0 72 48 388 24 296 68 1,053 384 561 108 13,098 1,469	43 0 23 20 284 9 212 63 456 46 360 50 5,875 1,576	7 0 5 2 19 0 9 10 270 30 162 78 1,617 222	4 0 2 2 11 0 8 3 16 4 8 4 457 12	11 0 8 3 59 10 46 3 39 16 22 1 639 151	8 0 7 1 55 3 49 3 338 53 249 36 2,604 866	6 0 4 2 3 0 3 0 5 1 4 0 0 0	15 0 10 5 104 6 76 22 173 41 106 26 3,589 921	17 0 13 4 67 15 45 7 102 22 71 9 1,221 384	7 0 2 5 35 0 23 12 126 17 88 21 1,387 235
	30 to 50 years More than 50 years		25,278 8,511	2,030 1,526	430 150	1,959 1,695	406 367	132 4	417 22	8,939 2,690	3,766 533	819 576	282 163	469 19	1,577 161	0 0	2,384 284	721 116	947 205
Number of employees with disabilities
	Number of persons with disabilities Percentage of persons with disabilities	100%	496 1.1 %	42 1.0 %	4 0.6 %	239 5.8 %	0 0.0 %	0 0.0 %	0 0.0 %	131 0.9 %	2 0.0 %	11 0.6 %	0 0.0 %	0 0.0 %	4 0.1 %	0 0.0 %	34 0.9 %	2 0.1 %	27 1.7 %
Number of immigrant employees
	Number of immigrants on staff Percentage of immigrants on staff	100%	886 1.9 %	140 3.2 %	8 1.3 %	539 13.0 %	2 0.2 %	2 0.4 %	1 0.1 %	3 0.0 %	133 2.0 %	24 1.3 %	5 1.0 %	12 1.6 %	2 0.1 %	2 14.3 %	7 0.2 %	5 0.4 %	1 0.1 %
	Number of executives from the local
	community Percentage of senior managers from the local community	100%	327 84.1 %	69 100.0 %	4 100.0 %	2 6.9 %	5 71.4 %	29 93.5 %	7 63.6 %	118 98.3 %	42 97.7 %	6 85.7 %	1 25.0 %	4 36.4 %	8 100.0 %	5 83.3 %	12 80.0 %	9 52.9 %	6 85.7 %

		Scope	Total	Spain	Portugal	Germany	Australia	Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia	Central America	Ecuador
Average pay in Euro
Gender	Man	100%	14,330	26,815	15,237	34,931	40,338	3,189	3,224	8,637	11,476	12,613	16,602	6,685	10,246	17,923	6,860	5,967	8,025
	Woman		9,804	14,806	11,778	26,209	36,231	10,923	3,224	6,277	6,087	9,485	17,752	5,642	6,057	5,130	3,655	5,144	7,883
	Less than 30 years		7,305	14,555	11,778	26,293	37,091	3,050	3,224	5,625	5,596	13,203	13,584	6,260	6,160	5,130	3,820	5,234	7,500
Age	30 to 50 years	100%	11,867	19,361	15,237	33,928	38,893	4,309	3,224	8,258	11,219	9,418	16,880	6,712	9,870	10,332	5,636	6,123	8,049
	More than 50 years		18,589	27,289	15,237	33,644	38,407	4,309	9,552	8,393	12,560	11,495	17,133	7,132	11,658	72,092	8,300	6,042	8,343
	Executives and Managers		59,611	84,731	55,784	64,410	165,258	35,589	31,276	48,674	66,701	66,669	62,729	58,317	98,112	32,232	42,067	35,903	51,325
	Man		59,875	90,833	55,784	74,297	152,712	35,536	32,901	47,116	67,794	73,458	62,729	42,913	98,112	26,644	42,200	29,032	51,325
	Woman		61,199	75,529	0	25,400	422,473	74,191	24,899	50,482	64,780	51,668	0	61,503	0	37,820	34,994	40,578	51,737
	Heads, supervisors and coordinators		23,164	49,853	36,984	54,249	73,631	10,475	16,368	15,439	19,245	39,269	28,631	7,908	29,204	12,073	14,304	7,557	19,594
	Man		23,350	51,789	36,984	57,519	86,967	10,028	15,652	15,596	19,847	40,253	30,557	7,898	29,682	14,546	15,430	7,828	19,594
	Woman		22,298	42,210	0	47,440	61,237	10,923	16,368	15,008	15,745	33,112	28,631	8,657	27,103	8,601	7,708	7,115	21,780
Professional category	Analysts and office clerks	100%	12,063	24,651	22,476	37,045	40,259	5,226	4,006	7,170	13,634	14,244	17,230	7,895	11,723	1,493	6,082	6,056	8,834
	Man		13,369	28,392	25,619	38,600	56,393	5,555	4,143	7,304	14,367	14,897	16,719	8,130	12,659	3,487	7,978	7,147	9,452
	Woman		10,488	21,466	14,848	30,798	39,001	4,602	3,918	7,046	12,514	12,108	17,741	6,903	9,143	225	5,730	5,267	8,119
	Operational		12,171	19,600	15,237	33,226	37,303	3,058	3,224	7,766	9,910	11,345	16,592	6,517	7,811	0	5,080	5,772	7,922
	Man		13,579	26,336	15,237	34,587	39,652	3,058	3,224	8,538	11,100	12,281	16,420	6,609	9,845	0	6,742	5,873	7,936
	Woman		9,169	14,632	11,778	25,863	36,138	0	3,224	6,100	5,869	8,846	17,572	5,393	5,866	0	3,468	5,191	7,680
Wage gap
Wage gap	Wage gap	100%	16.4 %	8.6 %	23.7 %	25.3 %	9.2 %	93.0 %	0.2 %	14.1 %	32.3 %	20.6 %	-9.7 %	11.7 %	1.9 %	28.0 %	13.2 %	11.2 %	3.8 %
	Executives and Managers		-2.0 %	20.9 %	100.0 %	65.8 %	-176.6 %	-108.8 %	24.3 %	-6.2 %	-15.7 %	76.0 %	100.0 %	-56.2 %	100.0 %	-41.9 %	36.4 %	6.5 %	-0.8 %
Professional category	Heads, supervisors and coordinators	100%	2.0 %	18.3 %	100.0 %	17.5 %	29.6 %	-8.9 %	-30.8 %	-6.5 %	11.4 %	26.9 %	9.0 %	-8.6 %	3.5 %	40.9 %	-10.5 %	12.5 %	-11.2 %
	Analysts and office clerks		12.2 %	17.4 %	42.0 %	20.2 %	30.8 %	17.2 %	6.1 %	6.7 %	8.1 %	5.0 %	23.2 %	-8.6 %	31.6 %	93.6 %	18.4 %	4.6 %	14.1 %
	Operational		17.1 %	7.0 %	22.7 %	25.2 %	8.8 %	100.0 %	0.0 %	15.5 %	35.5 %	22.9 %	-12.3 %	16.0 %	-2.3 %	0.0 %	13.5 %	13.8 %	3.2 %
Trade union representation
	Number of employees who are trade union members		9,644	714	177	1,200	0	0	0	3,726	897	1,643	411	0	719	0	157	0
	Percentage of employees who are trade union members	100%	20.9 %	16.3 %	28.0 %	28.9 %	0.0 %	0.0 %	0.0 %	25.4 %	13.5 %	85.9 %	84.2 %	0.0 %	23.9 %	0.0 %	4.0 %	0.0 %	0.0 %
Bargaining agreements
	Number of employees covered by a
	bargaining agreement	100%	36,882	4,370	632	3,995	0	0	0	14,659	5,510	1,630	485	748	2,630	0	1,985	0	238
	Percentage of employees covered by a bargaining agreement		80.0 %	100.0 %	100.0 %	96.3 %	0.0 %	0.0 %	0.0 %	100.0 %	82.8 %	85.2 %	99.4 %	100.0 %	87.5 %	0.0 %	51.1 %	0.0 %	15.3 %
Number of workers' representatives
	Number of employees elected by employees
	as workers' representatives (both union and individual)		2,123	176	3	0	0	0	0	1,697	64	40	26	0	28	0	78	0
	Percentage of employees elected by employees as workers' representatives (both union and individual)	100%	4.6 %	4.0 %	0.5 %	— %	— %	— %	— %	11.6 %	1.0 %	2.1 %	5.3 %	— %	0.9 %	— %	2.0 %	— %	0.7 %
Number of people with work-life balance
	Number of employees with some benefit
	associated with work-life balance	100%	415	154	0	0	0	0	0	0	247	14	0	0	0	0	0	0
	Percentage of employees with work-life balance		0.9 %	3.5 %	— %	— %	— %	— %	— %	— %	3.7 %	0.7 %	— %	— %	— %	— %	— %	— %	— %
Total number of training hours imparted
	Man		282,927	27,091	2,987	1,992	3,717	360	39	57,947	43,234	64,210	959	8,600	41,366	242	19,467	4,819	5,897
Gender	Woman	100%	115,629	6,678	48	447	2,107	30	11	18,135	39,312	24,227	47	915	11,398	148	10,513	1,516
	Executives and Managers		8,344	403	5	129	80	70	8	4,019	1,006	157	5	249	850	0	899	386
	Heads, supervisors and coordinators		25,663	571	149	361	600	50	24	12,402	5,294	570	19	1,113	2,552	0	560	1,130	270
Professional category	Analysts and office clerks	100%	46,991	5,919	106	514	360	50	18	8,622	9,128	9,280	27	624	9,664	61	406	1,388	823
	Operational		317,559	26,876	2,775	1,436	4,784	220	0	51,038	67,119	78,430	955	7,529	39,699	329	28,114	3,431	4,824

		Scope	Total	Spain	Portugal	Germany	Australia	Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia	Central America	Ecuador
	Total number of training hours imparted on human rights
	Man		39,670	81	48	0	0	40	0	1,696	3	0	0	24	36,443	226	1,075	32
Gender	Woman	100%	9,645	3	0	0	0	8	0	569	6	0	0	3	8,877	139	22	19
	Executives and Managers		812	0	0	0	0	24	0	30	0	0	0	0	754	0	0	4
	Heads, supervisors and coordinators		2,251	0	0	0	0	8	0	136	3	0	0	2	2,088	0	0	14
Professional category	Analysts and office clerks	100%	9,602	0	0	0	0	8	0	189	0	0	0	1	9,324	57	0	22
	Operational		36,650	84	48	0	0	8	0	1,910	6	0	0	24	33,155	308	1,097	11
	Total number of training hours imparted on Occupational Safety
	Man		110,406	27,091	24	0	424	24	16	8,136	7,128	48,230	175	288	4,923	16	12,947	717	268
Gender	Woman	100%	41,649	6,678	5	0	231	0	8	2,452	857	21,003	30	94	2,521	10	7,604	130	27
	Executives and Managers		1,040	403	0	0	10	16	8	186	79	0	0	9	96	0	212	21
	Heads, supervisors and coordinators		3,600	571	0	0	308	0	16	543	765	2	8	90	464	0	732	88	0 13
Professional category	Analysts and office clerks	100%	14,801	5,919	0	0	80	8	0	894	1,995	4,217	14	70	340	4	1,171	76	13
	Operational		132,614	26,876	29	0	257	0	0	8,965	5,146	65,014	183	213	6,544	21	18,436	661	269
Investment in training
	Investment made in employee training (€M)	100%	2	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	Number of employees who receive performance and professional development evaluations regularly
	Man		4,823	349	509	121	664	24	0	709	1,412	209	42	51	308	5	217	132	71
Gender	Woman	100%	3,440	251	123	62	337	2	0	296	1,840	103	17	24	179	4	61	64	77
	Percentage of employees who receive performance and professional development evaluations regularly
Gender	Man	100%	14.3 %	13.7 %	100.0 %	3.5 %	100.0 %	4.9 %	— %	6.1 %	32.0 %	15.0 %	10.0 %	7.9 %	15.5 %	55.6 %	9.1 %	11.0 %	5.0 %
	Woman		27.7 %	13.7 %	100.0 %	8.8 %	100.0 %	22.2 %	— %	9.5 %	82.1 %	20.0 %	24.3 %	23.3 %	17.5 %	80.0 %	4.1 %	31.3 %	51.7 %
	Number of employees who benefited from maternity or paternity leave
Gender	Man	100%	656	72	20	45	0	0	11	311	74	0	11	21	0	7	64	1	19
	Woman		507	79	2	35	3	0	36	118	74	32	3	11	61	0	32	16	5
	Number of employees who returned to work upon the conclusion of their maternity or paternity leave
Gender	Man	100%	632	66	14	39	0	0	8	311	71	0	11	21	0	7	64	1	19
	Woman		418	62	1	10	3	0	9	118	55	32	3	11	61	0	32	16	5
	Number of employees who returned to work upon the conclusion of their maternity or paternity leave and remained at their jobs for 12 months following their return
	Man		672	66	5	122	0	0	11	297	70	0	11	21	0	2	64	3	0
Gender	Woman	100%	424	62	0	72	3	0	17	87	54	12	3	9	61	0	32	12	0
Turnover
	Man		7,210	203	19	531	97	147	150	1,636	535	401	49	180	459	752	1,329	313	409
Gender	Woman	100%	3,218	150	7	121	83	5	150	622	304	269	12	33	277	339	702	97	47
	Less than 30 years		3,114	92	7	155	44	83	178	449	298	62	3	54	391	276	711	190	121
Age	30 to 50 years	100%	5,628	154	13	260	97	65	116	1,202	325	577	18	152	289	671	1,210	198	281
	More than 50 years		1,686	107	6	237	39	4	6	607	216	31	40	7	56	144	110	22	54
	Executives and Managers		55	10	0	0	4	10	0	10	3	0	1	0	1	6	5	3
	Heads, supervisors and coordinators		289	12	0	2	6	6	0	62	29	1	0	9	2	99	27	27	2 7
Professional category	Analysts and office clerks	100%	696	29	0	1	12	7	6	255	38	45	1	18	32	113	89	23	27
	Operational		9,388	302	26	649	158	129	294	1,931	769	624	59	186	701	873	1,910	357	420

		Scope	Total	Spain	Portugal	Germany	Australia	Indonesia	The Philippines	Brazil	Argentina	Chile	Uruguay	Paraguay	Peru	Mexico	Colombia	Central America	Ecuador
Turnover (terminations/total employees)
Gender	Man Woman	100.0%	21.4 % 25.9 %	8.0 % 8.2 %	3.7 % 5.7 %	15.4 % 17.3 %	14.6 % 24.6 %	30.2 % 55.6 %	21.8 % 32.9 %	14.2 % 19.9 %	12.1 % 13.6 %	28.7 % 52.1 %	11.7 % 17.1 %	27.9 % 32.0 %	23.1 % 27.1 %	n/a n/a	55.6 % 47.1 %	31.7 % 48.1 %	29.1 % 31.5 %
	Less than 30 years		37.3 %	23.1 %	17.9 %	48.0 %	29.5 %	27.6 %	28.3 %	23.9 %	18.3 %	24.6 %	18.8 %	30.5 %	42.4 %	n/a	73.5 %	45.4 %	48.0 %
Age	30 to 50 years More than 50 years	100.0%	19.8 % 17.9 %	6.7 % 6.4 %	3.0 % 3.8 %	12.7 % 13.3 %	21.1 % 9.9 %	34.2 % 80.0 %	24.9 % 12.0 %	12.2 % 20.8 %	7.5 % 32.4 %	58.0 % 4.7 %	6.0 % 23.3 %	27.9 % 26.9 %	15.4 % 27.9 %	n/a n/a	47.0 % 32.6 %	32.0 % 17.8 %	26.5 % 22.2 %
Professional category	Executives and Managers Heads, supervisors and coordinators Analysts and office clerks Operational	100.0%	14.1 % 22.6 % 22.5 % 22.7 %	14.5 % 10.8 % 10.8 % 7.7 %	— % — % — % 4.2 %	— % 3.6 % 1.0 % 16.4 %	57.1 % 14.0 % 31.6 % 17.3 %	32.3 % 24.0 % 41.2 % 30.5 %	— % — % 7.1 % 28.5 %	8.3 % 16.0 % 24.2 % 14.7 %	7.0 % 10.2 % 8.3 % 13.1 %	— % 5.3 % 16.7 % 38.6 %	25.0 % — % 6.3 % 12.9 %	— % 15.3 % 46.2 % 29.1 %	12.5 % 3.6 % 9.5 % 26.9 %	n/a n/a n/a n/a	33.3 % 26.0 % 51.4 % 53.2 %	— % 59.5 % 22.5 % 35.8 %	28.6 % 20.0 % 21.4 % 30.3 %
	Number of days worked by all Prosegur employees
Gender	Man Woman	100.0%	8,691,972 2,797,083	550,954 370,735	114,444 27,319	532,202 86,943	136,413 61,032	137,749 2,112	126,869	191,695 3,039,575 1,047,810 809,673	405,791	342,003 124,376	105,970 17,746	172,573 27,558	553,757 252,684	2,749 1,572	800,480 367,467	378,776 64,729	584,821 50,477
Total number of days lost through absence
Gender	Man Woman	100.0%	385,787 143,709	31,522 26,527	13,211 4,982	47,212 7,574	763 47	1,280 21	0 0	68,047 28,730	116,549 38,324	11,351 10,904	13,935 2,334	4,567 1,726	17,520 10,274	3 2	32,322 8,081	9,723 2,876	17,783 1,308
	Total number of hours lost due to work accidents and professional illness
Gender	Man Woman	100.0%	600,493 287,625	7,940 38,283	12,848 160	0 0	2,289 170	21,120 288	0 0	16,109 4,453	166,797 61,713	212,329 137,700	450 34	5,352 408	1,172 8	1,018 1,103	87,128 33,800	58,062 9,416	7,880 88
Rate of absenteeism		100.0%	4.6 %	6.3 %	12.8 %	8.8 %	0.4 %	0.9 %	0.0 %	2.5 %	10.7 %	4.8 %	13.2 %	3.1 %	3.4 %	0.1 %	3.5 %	1.7 %	3.0 %
	Training in health and safety to employees (hours) (absolute value)
	Total Man	100.00%	151,399 109,982
	Woman		41,418
No. of fatal accidents (absolute value)
	Total Man	100.00%	1 1
	Woman		0
	Accident rate (IR) = Frequency Rate IR=no. Accidents/no. hours*10^6
	Total		12.74
	Man Woman	100.00%	14.98 6.32
	Severity rate (IDR) IDR=no. Days lost due to occupational accidents/no. hours*10^3
	Total Man	100.00%	1.12 0.97
	Woman		1.54
Occupational illnesses (absolute value)
	Total		94.00
	Man	100.00%	62.00
	Woman Number of occupational accidents (absolute Value)		32.00
	Total		1,300
	Man Woman	100.00%	1,133 167

8.2.3. Other relevant indicators

Anti-corruption and bribery matters

KPIs	2020	2021
No. of complaints for breaches of the Code of Ethics	11	6
No. of complaints for fraud	7	10

A. The scope of these KPIs covers 100%. This excludes the scope of the new M&A acquisitions in 2020, disinvestments and the countries in which business are equity-accounted.

Consumers

KPIs	2020	2021
Number of complaints received from clients/Number of complaints solved	27,588/23,208	39,865/38,436

A. The scope of these KPIs covers 93%. The scope excludes Ecuador, Central America and Asia-Pacific (with the exception of Australia), the new M&A acquisitions in the year, disinvestments and the countries in which business are equity-accounted.

8.3. REQUIREMENTS OF THE NON-FINANCIAL INFORMATION STATEMENT

Index of the contents required by Spanish Act 11/2018, of 28 December and the Taxonomy regulation.

	Content	Rough connection with GRI indicators (reporting framework)	Pages
General Information
-	Brief description of the business model that includes its business environment, its organisation and structure.	GRI 102-2 GRI 102-7	140 / 251
-	Markets in which it operates.	GRI 102-3 GRI 102-4 GRI 102-6	140
-	Organisation objectives and strategies.	GRI 102-14	145
-	Main factors and tendencies that affect its future evolution.	GRI 102-14 GRI 102-15	155
- -	Reporting Framework utilised. Materiality principle.	GRI 102-54 GRI 102-46 GRI 102-47	262 201
	Corporate matters and those relative to the staff
-	Management approach: description and results of policies relative to these issues, as well as the main risks relating to these issues associated with the activities of the Group.	GRI 102-15 GRI 103-2	221
	Employment
-	Number and distribution of employees by country, gender, age and professional category.	GRI 102-8 GRI 405-1	264
-	Number and distribution of types of employment contracts, and the yearly average of open-ended, temporary and part time contracts by gender, age and professional category.	GRI 102-8	264
-	Number of laid-off employees by gender, age and professional category.	GRI 103-2	264
-	Average remuneration and its evolution broken down by gender, age and professional category or similar value.	GRI 405-2	264
-	Wage gap, remuneration for equivalent jobs or on average for the Company.	GRI 405-2	264
-	Average remuneration of directors and managers, including variable remuneration, per diems, compensation, the payment into long-term savings systems and any other earning broken down by gender.	GRI 405-2	226
-	Implementation of labour disconnection measures.	GRI 103-2	231
-	Number of employees with disabilities.	GRI 405-1	264
	Work Organisation
-	Organisation of working time.	GRI 103-2	221
-	Number of hours of absenteeism.	GRI 403-9	264

-	Measures aimed at facilitating the benefits of reconciliation and promoting the co-responsible exercise of these by both parents.	GRI 401-3	227
	Health and safety
-	Health and safety conditions in the workplace.	GRI 403-1 GRI 403-2 GRI 403-3 GRI 403-7	231
-	Occupational accidents, specifically their frequency and gravity, as well as occupational illnesses, broken down by gender.	GRI 403-9 GRI 403-10	264
	Social relations
-	Organisation of social dialogue including procedures for informing and consulting staff and negotiating with them.	GRI 103-2	227
-	Percentage of employees covered by the collective agreement by country.	GRI 102-41	264
-	Result of bargaining agreements, particularly in the field of occupational health and safety.	GRI 403-4	227
	Training
-	Policies implemented in the training field.	GRI 103-2 GRI 404-2	224
-	Total number of training hours by professional category.	GRI 404-1	264
	Universal integration and accessibility of individuals with disabilities
-	Measures adopted to promote equal treatment and opportunities between men and women.	GRI 103-2	233
-	Equality plans, measures adopted to promote employment, protocols against sexual and gender-based harassment.	GRI 103-2	233
-	Policy against all types of discrimination and, where appropriate, diversity management.	GRI 103-2	233
	Environmental issues
-	Management approach: description and results of policies relative to these issues, as well as the main risks relating to these issues associated with the activities of the Group.	GRI 102-15 GRI 103-2	206
Detailed general information
-	Detailed information on the current and foreseeable effects of Company activities on the environment and, where appropriate, on health and safety.	GRI 102-15	206
-	Environmental evaluation or certification procedures.	GRI 103-2	206
-	Resources devoted to environmental risk protection.	GRI 103-2	206
-	Application of the Precautionary Principle.	GRI 102-11	206
-	Quantity of provisions and guarantees for environmental risks.	GRI 103-2	206
	Pollution

Measures to prevent, decrease or remedy emissions that

seriously affect the environment, considering any form of atmospheric pollution specific to an activity, including noise and light pollution. GRI 103-2 GRI 305-7 206

Circular Economy and waste prevention and
management

-	Measures for prevention, recycling, re-utilisation, other forms of recovery and elimination of waste.	GRI 103-2 GRI 306-1 GRI 306-2	206
-	Actions to fight the waste of food.	GRI 103-2	262
	Sustainable use of resources
-	Consumption and supply of water in accordance with local restrictions.	GRI 303-5	263
-	Consumption of raw materials and measures adopted to improve the efficiency of use.	GRI 301-1	263
-	Direct and indirect energy consumption.	GRI 302-1	263
-	Measures to improve energy efficiency.	GRI 302-4	206
-	Use of renewable energies.	GRI 302-1	206
	Climate change
-	Greenhouse Gas Emissions generated as a result of Company activities, including the use of the goods and services it produces.	GRI 305-1 GRI 305-2	263
-	Measures adopted for adaptation to the consequences of climate change.	GRI 201-2	206
-	Reduction targets established voluntarily for the medium and long term to reduce greenhouse gas emissions and the measures implemented for this purpose.	GRI 305-5	206
	Biodiversity protection
-	Measures taken to preserve or restore biodiversity.	GRI 103-2	206
-	Impacts caused by activities or operations in protected areas.	GRI 103-2	206
	Respect for Human Rights
-	Management approach: description and results of policies relative to these issues, as well as the main risks relating to these issues associated with the activities of the Group.	GRI 102-15 GRI 103-2	230
-	Application of due diligence procedures on human rights and the prevention of the risks of the infringement of human rights and, where appropriate, measures to mitigate, manage and remedy possible abuses committed.	GRI 102-16 GRI 102-17 GRI 410-1 GRI 412-1 GRI 412-2	230
-	Reporting in cases of the infringement of human rights.	GRI 103-2 GRI 406-1	230
-	Measures implemented for the promotion and compliance with the provisions of the fundamental conventions of the International Labour Organisation regarding the respect for the freedom of association and the right to collective bargaining, the abolition of discrimination in employment and occupation, the abolition of forced obligatory labour	GRI 103-2 GRI 407-1 GRI 408-1 GRI 409-1	230

and the effective abolition of child labour.

Anti-corruption and bribery

-	Management approach: description and results of policies relative to these issues, as well as the main risks relating to these issues associated with the activities of the Group.	GRI 102-15 GRI 103-2	253
-	Measures adopted to prevent corruption and bribery.	GRI 103-2 GRI 102-16 GRI 102-17 GRI 205-2 GRI 205-3	253
-	Measures to combat money laundering.	GRI 103-2 GRI 102-16 GRI 102-17 GRI 205-2 GRI 205-3	253
-	Contributions to foundations and not-for-profit entities.	GRI 102-13 GRI 201-1	238
	General information on the Company
-	Management approach: description and results of policies relative to these issues, as well as the main risks relating to these issues associated with the activities of the Group. Commitments of the Company with sustainable development	GRI 102-15 GRI 103-2	186
	Impact of the Company activity on local employment and
-	development.	GRI 103-2 GRI 204-1	194
-	The impact of the Company activity on local populations and the territory.	GRI 413-1 GRI 413-2	194
-	The relations with local players of local communications and types of dialogue with them.	GRI 102-43 GRI 413-1	194
-	Association or sponsorship actions.	GRI 103-2	194
	Subcontracting and suppliers
-	Inclusion in the procurement policy of social, gender equality and environmental issues.	GRI 103-2	236
-	Consideration of social and environmental responsibility in relations with suppliers and subcontractors.	GRI 102-9	236
-	Supervision and audits and their results.	GRI 102-9 GRI 308-2 GRI 414-2	236
Consumers
-	Measures for consumer health and safety.	GRI 103-2	237
-	Systems for claims, complaints received and their resolution.	GRI 103-2 GRI 418-1	237
	Tax information
-	The profits obtained country by country.	GRI 207-4	258
-	Income tax paid.	GRI 207-4	258
-	Public grants received.	GRI 201-4	258

Taxonomy Regulation

-	Proportion of the turnover (Net Turnover Amount) from products or services related to economic activities considered environmentally sustainable in accordance with the Taxonomy Regulation.	EU Taxonomy Article 8 delegated act on the implementation of article 8 of the Taxonomy Regulation, on Company transparency in non financial reporting.	215
-	Proportion of total fixed assets (CAPEX) in relation to economic activities considered environmentally sustainable in accordance with the Taxonomy Regulation.	EU Taxonomy Article 8 delegated act on the implementation of article 8 of the Taxonomy Regulation, on Company transparency in non financial reporting.	215
-	Proportion of total operating expenses (OPEX) in relation to assets or processes associated with economic activities considered environmentally-sustainable in accordance with the Taxonomy Regulation.	EU Taxonomy Article 8 delegated act on the implementation of article 8 of the Taxonomy Regulation, on Company transparency in non financial reporting.	215

The page numbering refers to the first page of the caption in question.

8.4. COMPLIANCE WITH THE UNITED NATIONS GLOBAL COMPACT

The United Nations Global Compact is a call to companies and organisations to align their strategies and operations with ten universal principles on human rights, labour rules, the environment and anti-corruption.

It has the UN mandate for promotion of the Sustainable Development Goals (SDG) in the private sector.

Prosegur Cash is a subsidiary of the Prosegur Group, which has been a member of the United Nations Global Compact since 2002.

Global Compact Principle	Chapter
Human Rights
Principle 1. Business should support and respect the protection of international fundamental human rights recognised in their area of influence	6.2. Respect for Human Rights
Principle 2. Companies should make sure that they are not complicit in Human Rights abuses.	6.2. Respect for Human Rights
Labour laws
Principle 3. Business should uphold the freedom of association and the effective recognition of the right to collective bargaining.	6.1.3. Employee relations
Principle 4. Companies should support the elimination of all forms of forced and compulsory labour.	6.2. Respect for Human Rights 6.3. Purchases and supply chain
Principle 5. Companies should support the effective abolition of child labour.	6.2. Respect for Human Rights 6.3. Purchases and supply chain
Principle 6. Companies should support the elimination of discrimination in respect of employment and occupation.	6.2.2. Non-discrimination and diversity
Environment
Principle 7. Business should support a precautionary approach to benefit environmental challenges.	5.1. Environmental aspects
Principle 8. Companies should undertake initiatives to promote greater environmental responsibility.	5.1. Environmental aspects
Principle 9. Companies should encourage the development and diffusion of environmentally friendly technologies.	5.1. Environmental aspects
Anti-Corruption
Principle 10. Business should work against corruption in all its forms, including extortion and bribery.	7.2.1. Anti-corruption and bribery

8.5. INDEX OF GRI STANDARD CONTENTS

The Directors' Report has been prepared in accordance with Global Reporting Initiative (GRI) standards, thus covering all indicators related to the material aspects of the Company that were defined in the materiality analysis.

GENERAL BASIC CONTENT

	Indicators	Chapter / Information	Global Compact Principle
	ORGANISATION PROFILE
102-1	Company name	Prosegur Cash S.A.	-
102-2	Activities, trademarks, products and services	1. Who we are, What we do	-
102-3	Location of organisation headquarters	Calle Santa Sabina, 8, Madrid, Spain	-
102-4	Location of Operations	1. Who we are, What we do	-
102-5	Ownership and legal nature	7.1.1. Ownership structure	-
102-6	Service markets	1. Who we are, What we do	-
102-7	Organisation size	2. Financial and investment	-
102-8	Information on employees and other workers	6.1. Employees and professional development	-
102-9	Describe the organisation supply chain	6.3. Purchases and supply chain	-
102-10	Significant changes in the organisation and its supply chain	6.3. Purchases and supply chain	-
102-11	Precautionary principle or approach	3. Risk management	-
102-12	Prepare a list of the letters, the principles or other external initiatives of an economic, environmental and social nature to which the organisation subscribes or has adopted	7.2. Business conduct 8.4. Compliance with the United Nations Global Compact	-
102-13	Association membership	7.2. Business conduct	-
	STRATEGY AND ANALYSIS
102-14	Statement of senior executives responsible for decision-making	Letter from the President Message from the Managing Director	-
102-15	Main impacts, risks and opportunities	1.2. Business environment 1.4. Strategic performance 1.5. Innovation and Digital Transformation 3. Risk management 5.1. Environmental aspects	-
ETHICS AND INTEGRITY
	GRI 103: Management focus - Material topic: Ethics and anti-corruption
103-1	Explanation of the material topic and its coverage	1.1. Values 7.2. Business conduct	-
103-2	Management approach and its components	1.1. Values 7.2. Business conduct	-
103-3	Evaluation of the management approach	1.1. Values 7.2. Business conduct	-
102-16	Values, principles, standards and rules of conduct	1.1. Values 7.2. Business conduct	10
102-17	Mechanisms for consultancy and ethical concerns	1.1. Values 7.2. Business conduct	10
GOVERNANCE
103-1	Explanation of the material topic and its coverage	7.1. Corporate governance	-
103-2	Management approach and its components	7.1. Corporate governance	-
103-3	Evaluation of the management approach	7.1. Corporate governance	-
102-18	Describe the governance structure	7.1. Corporate governance	-

102-19	Describe the process by which the Board of Directors delegates its authority to Senior Management and certain employees for matters of an economic, environmental and social nature	7.1.5. Annual Corporate Governance Report	-
102-20	Indicate whether executive posts exist in the organisation or any with responsibility for economic, environmental and social matters, and whether those holding them are directly accountable before the Board of Directors.	7.1.5. Annual Corporate Governance Report	-
102-21	Describe the consulting processes among stakeholders and the Board of Directors with respect to economic, environmental and social matters.	7.1. Corporate governance	-
102-22	Structure of the supreme governing body and its committees.	7.1. Corporate governance	-
102-23	Indicate if the person who presides over the Board of Directors also holds an executive post. If so, describe the executive duties and the reasons for this arrangement.	7.1. Corporate governance	-
102-24	Describe the processes for appointment and selection of the Board of Directors and its committees, as well as the criteria on which the appointment and selection of its members are based.	7.1.5. Annual Corporate Governance Report	-
102-25	Describe the processes by means of which the Board of Directors prevents and manages possible conflicts of interest.	7.1.5. Annual Corporate Governance Report	-
102-26	Describe the duties of the Board of Directors and of Senior Management in the development, approval and update of the proposal, the values or the mission statements, strategies, policies and objectives relative to economic, environmental and social impacts of the organisation.	7.1.5. Annual Corporate Governance Report	-
102-27	Indicate what measures have been adopted to develop and improve the collective knowledge of the Board of Directors in relation to economic, environmental and social matters.	7.1.5. Annual Corporate Governance Report	-
102-28	Describe the processes for evaluating the performance of the Board of Directors in relation to the governing of economic, environmental and social matters. Indicate whether the evaluation is independent and how frequently it is performed. Indicate if this is a self-evaluation.	7.1.5. Annual Corporate Governance Report	-
102-29	Describe the duty of the Board of Directors in the identification and management of the impacts, risks and opportunities of an economic, environmental and social nature. Likewise indicate the role of the Board of Directors in the application of due diligence processes.	3. Risk management 7.1.5. Annual Corporate Governance Report	-
102-30	Describe the duty of the Board of Directors in the analysis of the effectiveness of risk management processes of the organisation with regard to economic, environmental and social matters.	3. Risk management 7.1.5. Annual Corporate Governance Report	-
102-31	Indicate the frequency with which the Board of Directors analyses and evaluates the impacts, risks and opportunities of an economic, environmental and social nature.	3. Risk management 7.1.5. Annual Corporate Governance Report	-
102-32	Indicate which committee or position of greatest importance reviews and approves the sustainability report of the organisation and ensures that all material Aspects are reflected.	The Annual Report is reviewed and approved by the Board of Directors.	-
102-33	Describe the process for conveying significant concerns to the Board of Directors.	7.1. Corporate governance	-
102-34	Indicate the nature and the number of important concerns that were conveyed to the Board of Directors; also describe the mechanisms used to address and evaluate them.	7.1.5. Annual Corporate Governance Report	-

102-35	Describe the remuneration policies for the Board of Directors and Senior Management.	7.1.5. Annual Corporate Governance Report	-
102-36	Describe the processes by means of which the remuneration is determined. Indicate if consultants are used to determine the remuneration and whether they are independent from Management.	7.1.5. Annual Corporate Governance Report	-
102-37	Explain how the opinion of stakeholders is requested and considered with regard to remuneration including, where appropriate, the results of votes on policies and proposals regarding this matter.	In 2021 there was no consultation relative to this matter in any of the Company communication channels.	-
102-38	Ratio of total annual compensation	7.1.5. Annual Corporate Governance Report 7.1.6. Annual Report on Director Remuneration	-
102-39	Ratio of the percentage increase of total annual compensation	7.1.5. Annual Corporate Governance Report 7.1.6. Annual Report on Director Remuneration	-
	PARTICIPATION OF STAKEHOLDERS
102-40	Prepare a list of stakeholders associated with the organisation	4. Responsible management	-
102-41	Percentage of employees covered by bargaining agreements	8.2. Key indicators	1, 3
102-42	Indicate the basis for the election of stakeholders with which it works	4. Responsible management	-
102-43	Describe the approach of the organisation regarding the participation of stakeholders, including the frequency of collaboration with the different stakeholder types and groups, or indicate if the participation of one group took place specifically in the process for preparation of the annual report.	4. Responsible management	1, 2, 3, 4, 5, 6, 7, 8, 9, 10
102-44	Indicate which key issues and problems were identified as a result of the participation of the stakeholders and describe the evaluation made by the organisation, by means of its annual report among other aspects. Specify which stakeholders raised each of the key topics and problems.	4. Responsible management	-
REPORTING PRACTICE
102-45	Entities included in the Consolidated financial statements	2021 Consolidated Annual Accounts Report Available at www.prosegurcash.com	-
102-46	Definition of the contents of the report and coverage of each aspect	4. Responsible management	-
102-47	List of material topics	4. Responsible management	-
102-48	Re-statement of the information	None of the information published in any prior reports has been restated	-
102-49	Significant changes in the scope and coverage of reported aspects	8.1. About this report	-
102-50	Annual reporting period (for example, fiscal or calendar year)	2021	-
102-51	Date of the last report (if appropriate)	2020	-
102-52	Reporting cycle (annual, biennial, etc.)	Annual	-
102-53	Provide a point of contact to resolve any doubts that may arise over the content of the report	accionistascash@prosegur.com	-
102-54	Statement of report preparation in accordance with GRI standards	8.5. Index of GRI Standard Contents	-
102-55	GRI indicator index	8.5. Index of GRI Standard Contents	-
102-56	External audit	The Statement of Non-financial Information, contained in the 2021 Consolidated Directors' Report, has been audited by EY.	-
SPECIFIC CONTENT

ECONOMY

ECONOMIC PERFORMANCE 201-1 Direct, generated and distributed economic value 2. Financial and investment - 201-2 Financial consequences and other risks and opportunities for organisation activities owing to climate change 5.1. Environmental aspects 7, 8, 9

201-3	Restriction of organisation obligations owing to social benefit programmes	N/A. There is no benefit plan for employees	-
MARKET PRESENCE
202-2	Percentage of Senior Managers from the local community in places where significant operations are undertaken	8.2. Key indicators	-
204-1	Percentage of the expense in places with significant operations that correspond to local suppliers	6.3. Purchases and supply chain	-
COMPANY
ANTI-CORRUPTION
	GRI 103: Management focus - Material topic: Ethics and anti-corruption
103-1	Explanation of the material topic and its coverage	7.2. Business conduct	-
103-2	Management approach and its components	7.2. Business conduct	-
103-3	Evaluation of the management approach	7.2. Business conduct	-
205-1	Number and percentage of centres in which risks regarding corruption have been appraised, and significant risks detected	7.2. Business conduct	10
205-2	Policies and procedures for communication and training on anti corruption	7.2. Business conduct	10
205-3	Confirmed cases of corruption and measures adopted	7.2. Business conduct	10
	UNFAIR COMPETITION PRACTICES
206-1	Number of legal procedures for causes regarding monopolies and other unfair competition practices, and their results	7.2. Business conduct	10
	REGULATORY COMPLIANCE
419-1	Breach of laws and legislation in social and economic areas	7.2. Business conduct	10
ENVIRONMENT
MATERIALS
301-1	Materials by weight or volume	5.1. Environmental aspects	-
301-2	Percentage of used materials that have been recycled	5.1. Environmental aspects	9
ENERGY
302-1 302-4	Internal energy consumption Decreased energy consumption	5.1. Environmental aspects 5.1. Environmental aspects	- 9
WATER
303-1	Water extraction by source	5.1. Environmental aspects	-
	Percentage and total volume of recycled
303-3	and reused water	5.1. Environmental aspects	9
EMISSIONS
305-1	Direct greenhouse gas emissions (Scope 1)	5.1. Environmental aspects	-
305-2	Indirect greenhouse gas emissions from generating energy (Scope 2)	5.1. Environmental aspects	-
305-5	Reduced greenhouse gas emissions	5.1. Environmental aspects	9
EFFLUENTS AND WASTE
306-2	Total weight of waste managed, by type and treatment method	5.1. Environmental aspects	-
SOCIAL PERFORMANCE
LABOUR PRACTICES AND DIGNIFIED EMPLOYMENT
EMPLOYMENT
401-1	Number and rate of recruits and average rotation of employees, broken down by ethnic group, gender and region	8.2. Key indicators	6

	PROSEGUR
	CASH

401-2	Social benefits for full-time employees that are not offered to temporary or part-time employees, broken down by significant activity locations	The Company does not differentiate social benefits between temporary or part-time employees and full time employees	-
401-3	Rates of returning to and remaining at the job following maternity or paternity leave, broken down by gender	8.2. Key indicators	6
	RELATIONS BETWEEN EMPLOYEES AND MANAGEMENT
402-1	Minimum notice periods for operating changes and possible inclusion of these in bargaining agreements	6.1. Employees and professional development	-
	OCCUPATIONAL HEALTH AND SAFETY
	GRI 103: Management focus - Material topic: Occupational health and safety
103-1	Explanation of the material topic and its coverage	6.2.1. Health and occupational safety	-
103-2	Management approach and its components	6.2.1. Health and occupational safety	-
103-3	Evaluation of the management approach	6.2.1. Health and occupational safety	-
403-1	Employee representation on formal employee-company committees on health and safety	6.2.1. Health and occupational safety	1
403-2	Type of accidents and accident frequency rates, occupational illnesses, days lost, absenteeism and number of deaths by occupational accident or illness	6.2.1. Health and occupational safety	-
403-3	Employees with a high incidence or at high risk for illnesses relating to their activity	6.2.1. Health and occupational safety	-
403-4	Health and safety topics addressed in formal agreements with unions	The information is contained in the bargaining agreements of the various countries of operation.	-
	TRAINING AND EDUCATION
404-1	Average hours of annual training per employee, broken down by gender and professional category	8.2. Key indicators	-
404-2	Programmes for skill management and on-going training that promote the employability of workers and helps them manage the end of their professional careers	6.1. Employees and professional development	6
404-3	Percentage of employees who receive regular evaluations on performance and professional development, broken down by gender and professional category	8.2. Key indicators	-
	DIVERSITY AND EQUAL OPPORTUNITIES
405-1	Diversity in governance bodies and employees	7.1. Corporate governance	1, 6
EQUAL REMUNERATION BETWEEN MEN AND WOMEN
405-2	Ratio of the base salary and remuneration of women vs men	8.2. Key indicators	1, 6
HUMAN RIGHTS
GRI 103: Management focus - Material topic: Human Rights
103-1	Explanation of the material topic and its coverage	6.2. Respect for Human Rights	-
103-2	Management approach and its components	6.2. Respect for Human Rights	-
103-3	Evaluation of the management approach	6.2. Respect for Human Rights	-
NON-DISCRIMINATION
406-1	Number of cases of discrimination and corrective measures adopted	6.2. Respect for Human Rights	-
FREEDOM OF ASSOCIATION AND COLLECTIVE NEGOTIATION
407-1	Identification of centres and suppliers in which the freedom of association and the right to bargaining agreements may be infringed or threatened, and measures adopted in defence of these rights	6.2. Respect for Human Rights	3
SECURITY MEASURES

410-1	Percentage of security staff that has received training on the policies or procedures of the organisation on human rights relevant to the operations	6.2. Respect for Human Rights	1
INVESTMENT
412-3	Number and percentage of significant investment contracts and agreements that include clauses on human rights or that have been the subject of analysis on human rights	6.2. Respect for Human Rights	2
412-2	Training hours of employees on policies and procedures regarding those aspects of human rights relevant to their activities, including the percentage of trained employees	8.2. Key indicators	1, 2
PRODUCT RESPONSIBILITY
CLIENT HEALTH AND SAFETY
416-1	Percentage of categories of significant products and services whose impacts on health and safety have been evaluated to promote improvements	6.4. Consumers	9
416-2	Number of incidents deriving from the breach of legislation or of the voluntary codes relative to the impacts of the products and services on health and safety during their life cycle, broken down by the type of result of those incidents	No incidents have been recorded in this aspect	-

Independent Limited Assurance Report of the Consolidated Non-Financial Statement for the year ended December 31, 2021

PROSEGUR CASH, S.A. and SUBSIDIARIES

INDEPENDENT LIMITED ASSURANCE REPORT OF THE CONSOLIDATED NON-FINANCIAL STATEMENT

Translation of a report originally issued in Spanish. In the event of discrepancy, the Spanish-language version prevails

To the Shareholders of PROSEGUR CASH, S.A.:

Pursuant to article 49 of the Code of Commerce we have performed a verification, with a limited assurance scope, of the Consolidated Non-Financial Information Statement (hereinafter NFS) for the year ended December 31, 2021, of PROSEGUR CASH, S.A. and subsidiaries (hereinafter, the Group), which is part of the Group's accompanying 2021 Consolidated Management Report.

The content of the Management Report includes additional information to that required by prevailing mercantile regulations in relation to non-financial information that has not been subject to our verification. In this regard, our assignment has been exclusively limited to the verification of the information shown in appendices 8.3 "Requirements of the Non-Financial Information Statement" of the accompanying Management Report.

Responsibility of the Board of Directors

The preparation of the NFS included in the Consolidated Management Report of PROSEGUR CASH, S.A. and its content is the responsibility of the Board of Directors of the Group. The NFS was prepared in accordance with the content required by prevailing company law and in conformity with the criteria outlined in the Global Reporting Initiative Sustainability Reporting Standards (GRI standards) selected, as well as other criteria described in accordance with that indicated for each subject in appendices 8.3 "Requirements of the Non-Financial Information Statement" from the accompanying Management Report.

The Board of Directors are also responsible for the design, implementation and maintenance of such internal control as they determine is necessary to enable the preparation of an NFS that is free from material misstatement, whether due to fraud or error.

They are further responsible for defining, implementing, adapting and maintaining the management systems from which the information necessary for the preparation of the NFS is obtained.

Our independence and quality control procedures

We have complied with the independence and other Code of Ethics requirements for accounting professionals issued by the International Ethics Standards Board for Accountants (IESBA), which is based on the fundamental principles of professional integrity, objectivity, competence, diligence as well as confidentiality and professional behaviour.

Our Firm complies with the International Standard on Quality Control No. 1 and thus maintains a global quality control system that includes documented policies and procedures related to compliance with ethical requirements, professional standards, as well as applicable legal provisions and regulations.

The engagement team consisted of experts in the review of Non-Financial Information and, specifically, in information about economic, social and environmental performance.

Our responsibility

Our responsibility is to express our conclusions in an independent limited verification report based on the work performed. Our review has been performed in accordance with the requirements established in prevailing International Standard on Assurance Engagements 3000 "Assurance Engagements Other than Audits or Reviews of Historical Financial Information" (ISAE 3000 Revised) issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC) and the guidelines for verifying Non-Financial Statement, issued by the Spanish Official Register of Auditors of Accounts (ICJCE).

The procedures carried out in a limited assurance engagement vary in nature and execution timing and are smaller in scope than reasonable assurance engagements, and therefore, the level of assurance provided is likewise lower.

Our work consisted in requesting information from Management and the various Group units participating in the preparation of the 2021 NFS, reviewing the process for gathering and validating the information included in the NFS, and applying certain analytical procedures and sampling review tests as described below:

• Meeting with Group personnel to know the business model, policies and management approaches applied, the main risks related to these matters and obtain the necessary information for our external review.
• Analyzing the scope, relevance and integrity of the content included in the NFS for the year 2021 based on the materiality analysis made by the Group and described in section 4.4 "Materiality Analysis", considering the content required by prevailing mercantile regulations.
• Analyzing the processes for gathering and validating the data included in the 2021 Non-Financial Statement.
• Reviewing the information on the risks, policies and management approaches applied in relation to the material aspects included in the 2021 NFS.
• Checking, through tests, based on a selection of a sample, the information related to the content of the 2021 NFS and its correct compilation from the data provided by the information sources.
• Obtaining a representation letter from the Board of Directors and Management.

Paragraph of emphasis

Regulation (EU) 2020/852 of the European Parliament and the Council, June 18 2020, on the establishment of a framework to facilitate sustainable investments settles the obligation to disclose information on how and to what extent the company's activities are associated with economic activities that are considered environmentally sustainable in relation to climate change mitigation and adaptation objectives for the first time for the financial year 2021, provided that the Statement of Non-Financial Information is published as of January 1 2022. Consequently, comparative information on this matter has not been included in the accompanying NFIS. Additionally, information has been included, for which the directors of PROSEGUR CASH, S.A. have chosen to apply the criteria that, in their opinion, best enable compliance with the new obligation and which are defined within section 5.2 "European Taxonomy on Sustainability" of the accompanying Consolidated Management Report. Our conclusion has not been modified in relation to this matter

Conclusion

Based on the limited assurance procedures conducted and the evidence obtained, no matter has come to our attention that would cause us to believe that the Group NFS for the year ended December 31, 2021 has not been prepared, in all material respects, in accordance with the contents required by prevailing company law and the criteria of the selected GRI standards, as well as other criteria, described as explained for each subject matter in the appendices 8.3 "Requirements of the Non-Financial Information Statement" of the Consolidated Management Report.

Use and distribution

This report has been prepared as required by prevailing mercantile regulations in Spain and may not be suitable for any other purpose or jurisdiction.

ERNST & YOUNG, S.L.

(Signature on the original in Spanish)

____________________ Alberto Castilla Vida

February 25, 2022

9

Internal Financial Information Control System (ICFR)

9. INTERNAL CONTROL OVER FINANCIAL REPORTING SYSTEM (ICFR)

9.1. BUSINESS ENVIRONMENT

Government and Responsible Bodies

The two main bodies responsible for the existence of an adequate and effective ICFR, as well as for its implementation and supervision, are the Board of Directors and the Audit Committee.

Therefore, in the first place, article 5 of the Prosegur Cash Board of Directors Regulation, updated in October 2021, establishes that said body has a general supervisory function. Specifically, it establishes that 'Except in respect of matters reserved for the competency of the Shareholders General Meeting, the Board of Directors is the Company's most senior decisionmaking body'.

For these purposes, article 5 of the Prosegur Cash Board of Directors Regulation establishes that the Board specifically agrees to directly exercise the following powers: 'The determination of the general policies and strategies of the Company and, in particular: (i) the strategic or business plan, as well as the annual management goals and budget; (ii) the investment and financing policy; (iii) the corporate governance policy for the Company and group of which it is the parent; (iv) the corporate social responsibility policy; (v) the remuneration policy and evaluation of senior executive performance; (vi) the treasury stock policy and its limits, specifically; (vii) the dividend policy; (viii) determination of the Company's tax strategy; and (ix) risk control and management policy, including tax risks, as well as the monitoring of internal reporting and control systems'.

Article 17 of the Board of Directors Regulation, and 8 and 11 of the Audit Committee Regulation establish that the latter will be responsible for the following, among other tasks:

• ^J 'Ensuring that the annual accounts that the Board of Directors presents to the General Shareholders' Meeting are prepared in accordance with accounting regulations (…)'
• ^J In turn, the Audit Committee is responsible for supervising the process for preparing and submitting the necessary financial information and presenting recommendations or proposals to the Board of Directors aimed at safeguarding its integrity. In relation to this, it is responsible for supervising and assessing the process for the preparation and integrity of financial and non-financial reporting, as well as the systems for control and management of financial and non-financial risks relative to the Company and to the Group, including operational, technological, legal, social, environmental, political and reputational systems or those regarding corruption, checking for compliance with legal requirements, the appropriate definition of the consolidation perimeter, and the proper application of accounting criteria, disclosing this to the Board of Directors'.
• ^J 'To previously inform the Board of Directors on any financial information that the Company should publish periodically'.

^J 'Supervising the effectiveness of the Company's internal control and risk management systems, including tax risks, and discussing any significant weaknesses in the internal control system detected during the audit with the accounts auditor, all without violating their independence. For these purposes and where applicable, it may present recommendations or proposals to the Board of Directors and the corresponding deadline for follow-up'.

With regard to this, it corresponds to the Committee 'to make proposals to the Board of Directors regarding the risk management and control policy, which will identify or determine the following at minimum: (i) the various types of financial or nonfinancial risks (operating, technological, financial, legal, social, environmental, political and reputational, including those regarding corruption) that the Company faces, with the financial or economic risks including contingent liabilities and other off balance sheet risks; (ii) a risk control and management model based on various levels, of which a commission specialising in risks will form part when sectoral rules so provide or the Company deems its appropriate; (iii) the establishment of the risk level that the Company considers acceptable; (iv)

the measures to mitigate the impact of risk events should they occur; and (v) the reporting and control system to be used to control and manage those risks'.

^J 'Supervising the operation of the Company's risk control and management unit responsible for: (i) to ensure the proper functioning of the risk control and management systems and, in particular, that all significant risks affecting the Company are properly identified, managed, and quantified; (ii) to actively participate in preparing the risk strategy and in taking important decisions regarding its management; and (iii) to ensure that risk control and management systems adequately mitigate the risks in accordance with the policy defined by the Board of Directors'.

In addition, the Auditing Committee Regulation, determines in article 1 that 'The Auditing Committee, as a registered body, has specific responsibilities for advising the Board of Directors and for supervising and controlling the processes of preparation and presentation of the financial information, the independence of the accounts auditor and the effectiveness of the internal control and risk management systems, without prejudice to the responsibility of the Board of Directors'.

Responsibilities, General Code of Conduct, Report Channel and training

Responsibility functions

In keeping with its regulation, the Prosegur Cash Board of Directors specifically undertakes to directly appoint and dismiss Managing Directors of the Company, as well as to establish the conditions of their contracts and the appointment and dismissal of executives who report directly to the Board of Directors or any of its members, as well as to establish the basic conditions of their contracts, including remuneration.

The design and review of the organisational structure and the definition of the lines of responsibility and authority is proposed by the Managing Director and validated by the Committee for Sustainability, Corporate Governance, Appointments and Remuneration. The Human Resources Department is responsible for updating the information in the organisational chart, once the modification has been validated, and publishing it on the intranet.

The functions - responsibilities, as well as the job profile and the necessary skills for each of the jobs, are defined by each direct superior and are validated by the Directors of the corresponding areas based on the job evaluation policy for the Prosegur group. To do this, they have the help of experts from the Human Resources department.

This organisational structure is set forth in a chart showing the relationships among the various business and support departments comprising Prosegur Cash. The Company's organisation chart is located on the corporate intranet and is accessible to all personnel.

Code of Ethics and Conduct

The Company has a Code of Ethics and Conduct, approved by the Board of Directors on 26 April 2017, applicable to all companies comprising Prosegur Cash and to all businesses and activities performed by Prosegur Cash in all countries in which it operates. This derives from the Prosegur Compañía de Seguridad, S.A. Code of Ethics and Conduct, the parent of the Prosegur Group and of which Prosegur Cash forms part, and therefore reflects the same conduct principles. It is binding upon all members of Prosegur Cash governing bodies, executives and staff. The Code of Ethics and Conduct provides guidance on how all the Prosegur professionals behave. It evidences Prosegur Cash's commitment to conduct itself at all times in line with common principles and standards in its relations with stakeholders affected by its activities: employees, shareholders, customers and users, suppliers and associates; authorities, public administrations and regulatory bodies; competitors and the civil society in which it is present.

All Prosegur Cash professionals are obliged to know and comply with the Code of Ethics and Conduct, and to collaborate in facilitating its implementation as well as notify possible breaches about which they may become aware.

The Code establishes that those who, by action or omission, violate the Code of Ethics and Conduct will be subject to disciplinary measures applicable in each case, in accordance with current labour regulations and internal policies and procedures. All reported breaches are analysed through an enquiry process conducted by a team of impartial experts led by the compliance unit, which will present its conclusions and, as appropriate, propose any corrective measures that should be applied, informing those individuals who identified or reported the breach.

Within the legal compliance section of the Code of Ethics and Conduct, express reference is made to the preparation of financial information in a thorough, clear and accurate manner, using the appropriate accounting records, and its dissemination through transparent communication channels that enable permanent access to the market, and to Prosegur Cash's shareholders and investors in particular.

Likewise, the section concerning the use and protection of resources includes the need to ensure that all economically significant transactions performed on Prosegur Cash's behalf are listed clearly and accurately in the appropriate accounting records representing a true and fair view of the transactions performed, and that these be available to internal and external auditors.

The Code of Ethics and Conduct is available on the Prosegur Cash corporate website.

Likewise, the third section of the Code of Ethics and Conduct describes that Prosegur professionals accept the rules summarised in said Code and are bound to complying with it by signing. New hires personally receive a copy of the Code of Ethics and Conduct.

Prosegur Cash employees have training courses on the Code of Ethics and Conduct on the Prosegur Corporate University platform.

Ethics Channel

Prosegur Cash has an Ethics Channel that allows any party to safely report any incidents and irregularities of potential significance that could be contrary to its contents, and that could occur in the development of the activities carried out by the Company. The reports are treated objectively, independently, anonymously and confidentially, taking all appropriate measures to ensure compliance with the Code of Ethics. Accounting irregularities and those of a financial nature are among the matters that may be reported through the Ethics Channel.

The Ethics Channel consists of a reporting tool, available on the Company website as well as its Intranet, which is permanently open and provides anonymity to ensure the integrity of the individuals who use it.

The Internal Audit Department confidentially manages the communications received and transmits information on their results to the Audit Committee.

Training

Prosegur Cash pays particular attention to continuing training and the development of its professionals for the proper performance of their functions.

The framework agreement on relations between Prosegur Compañía de Seguridad, S.A. and Prosegur Cash, S.A. includes providing agreements for providing central and management support services (among others, legal counsel, accounting and financial services) between Prosegur Cash and the companies comprising the Prosegur Group asset management division, specifically Prosegur Gestión de Activos, S.L, which is fully owned by Prosegur Companía de Seguridad, S.A. This is why the staff that provides central and management support services and the Internal Audit Department continuously attend training sessions to remain current in regulatory and legislative changes.

The Company receives periodic training from certain organisations that allow it to constantly update the knowledge of employees involved in preparing the Financial Statements of the Company and its Group and the review of financial information.

On the other hand and in order to manage training processes with an on-line platform, Prosegur Cash has the Prosegur Corporate University, which is placed at the disposal of Company staff so that they may obtain the training they need.

Each year using the ICFR scoping matrix, Financial Management identifies the risks affecting financial reporting from the standpoint of accounting records and potential noncompliance with accounting standards following its analysis of these.

The purpose of the ICFR scope matrix isto identify the accounts and breakdowns that have a significant associated risk, whose potential impact on the financial information is material and therefore requires special attention. In this sense, in the process of identifying significant accounts and breakdowns, a series of quantitative variables (account balance in relation to the materiality established for these purposes) and qualitative variables (account composition, automation of systems processes/ integration, standardisation of operations, susceptibility to fraud or error, complexity of transactions, degree of estimation/judgment and valuations, changes with respect to the previous year; changes and complexity in regulations; application of judgment and qualitative importance of the information, among others) are considered.

This ICFR scoping matrix is based on the statement of financial position and on the balance sheet and consolidated statement of comprehensive income included in the audited Consolidated Financial Statements available. This matrix is updated annually, following the preparation of the Consolidated Financial Statements. In 2021, the scope matrix was updated based on the figures contained in the Annual Financial Statements for 31 December 2020.

For each of the accounts and significant breakdowns included in the scope matrix, the critical processes and sub-processes associated with them are defined, and controls are implemented that could prevent errors and/ or fraud in the financial information, covering all of the objectives of the financial information

(existence and occurrence; completeness; valuation; presentation, breakdown and comparability; and rights and obligations).

The consolidation scope is identified on a monthly basis. Changes in the consolidation scope are recorded in the Group's consolidation computer system, in which the map of the ownership structure of the companies within the scope is constantly updated.

The management support functions fulfilled through Prosegur Gestión de Activos, S.L., Prosegur Group Business Development and the Legal Department include the obligation to inform Financial Management of any transactions performed within its sphere that could affect the structure of the group and the consolidation perimeter.

Financial Management, through the Tax Department and in compliance with its support duties to Prosegur Cash and its Group from Prosegur Gestión de Activos, S.L., keeps a record of all the companies included in its consolidation perimeter, form of control or influence, legal form and the type of direct or indirect holdings in all the companies. It is continuously updated and allows historical changes in the scope to be traced.

Prosegur Cash has a Risk Committee that informs the Audit Committee of the results of regular assessments of critical risk management. Prosegur Cash's Internal Audit Department identifies all types of critical risks (operating, technological, financial, interest rate, exchange rate, legal, tax, social, regulatory, reputational, environmental, political, corruption and fraud) that, were they to materialise, could have an adverse affect on the achievement of relevant goals for the Company.

Supervision of the effectiveness of internal controls over financial reporting (ICFR) is the responsibility of the Audit Committee. The Internal Audit Department applies specific audit programmes on the internal control system under the supervision of the Audit Committee.

9.3. CONTROL ACTIVITIES

Financial information review and authorisation procedures

Prosegur Cash's consolidated financial statements and half-yearly and quarterly consolidated financial reports are reviewed by the Audit Committee prior to their preparation by the Board of Directors, in accordance with articles 17 and 8, respectively, of the Regulation of the Board of Directors and Audit Committee. The Audit Committee also reviews any other relevant information prior to publication through the regulatory bodies.

The Board of Directors approves and, where appropriate, draws up the financial information presented, which is subsequently published through the National Securities Market Commission and presented to third parties.

Prosegur Cash conducts periodic reviews of the financial information it prepares, as well as the description of the ICFR in order to ensure the quality of information. Financial Management, from Prosegur Gestión de Activos, S.L. and in compliance with its support duties, is in charge of preparing the description of the ICFR in coordination with the departments involved. This process culminates with the review by the Audit Committee and consequently, it is also approved through the Annual Corporate Governance Report validated by the Board of Directors as a whole.

Financial Management provides a detailed description of the flow of activities and controls on significant transactions that affect the financial statements. The documentation of these flows defines the applicable rules of

action and the information systems used for the accounting closing process. The procedures for preparing the accounting close of the Consolidated and Individual Financial Statements and Annual Accounts are updated and sent to the personnel involved in the process of preparing the financial information. The documents detail the basic tasks of preparation, review and approval of the consolidated accounting closings and of the individual companies that make up the Group.

Prosegur Cash discloses financial information to securities markets on a quarterly basis. The Prosegur Cash Chief Financial Officer is ultimately responsible for financial reporting. In the description of the flow of activities of the accounting closing process, the control activities that ensure the reliability of the information are identified. The departments that comprise Financial Management and support the Company and its Group from Prosegur Gestión de Activos, S.L., analyse and supervise the information prepared.

Financial Management documents the risk of error or fraud in financial reporting and the controls that affect all critical processes/subprocesses. These processes cover the different types of transactions that can materially affect the financial statements (purchases, sales, personnel expenses, etc.), as well as the specific consolidation and reporting process.

To this regard, Prosegur Cash has ensured the identification of all processes necessary to prepare the financial information, in which it has used relevant judgements, estimates, valuations and projections, considering all of them to be critical.

The documentation of each of the critical processes consists of:

• ^J Flow diagrams of each one of the subprocesses
• ^J Risk and control matrices that include:
  • ^J Detail of the procedures and internal rules approved by the Management, and which regulate said sub-processes.
  • ^J Description of the key and non-key controls that mitigate each of the identified risks.

For each control, the following were identified:

• ^J Organizational structures and/or job functions responsible for each of the identified key and non-key controls.
• ^J Frequency of controls.
• ^J Automation of the controls.
• ^J Type of control: preventive or detective.
• ^J Existence of fraud risk.
• ^J Business to which it applies.
• ^J Detail of the information systems that affect the controls.

The specific review of the relevant judgements, estimates and valuations for quantifying goods, rights and obligations, revenue and expenses and any other commitment listed in the Individual and Consolidated Annual Financial Statements is performed by Prosegur Cash Financial Management with the collaboration and support of Prosegur Gestión de Activos, S.L. and the rest of Prosegur Cash's Support Divisions. Assumptions based on business performance are analysed jointly with the Business Division.

The Prosegur Cash Chief Financial Officer and Managing Director analyse the reports issued and approve financial information before it is presented to the Audit Committee and Board of Directors.

Internal control policies and procedures for information systems

Information Security, led by a Global CISO, reports directly to the Prosegur Group General Director, and supports all those countries in which Prosegur is present. In turn, Prosegur Cash has its own CISO with a dual reporting obligation: the Prosegur Cash Department and the Global CISO.

The Information Security area has the following responsibilities:

• ^J To align information security objectives with the main strategic lines of business.
• ^J To undertake Prosegur's information security as a global activity that is part of the business.
• ^J To coordinate and approve the proposals received from projects related to information security.

• ^J To provide the necessary resources for the development of information security initiatives.
• ^J To identify and assess security risks against business needs.
• ^J To raise awareness and train company employees on information security.

The Information Security Department is currently executing the 2021-2023 strategic plan, which includes the improvements necessary in relation to those matters and which serves as a guide for the ongoing and cultural process in relation to information security.

The Group has an updated Information Security Regulatory Framework that, among others, establishes the applicable guidelines in:

• ^J Computer resource and system usage.
• ^J Password management and use.
• ^J Identity and access control management.
• ^J Classification of the information
• ^J Storage media protection.
• ^J Security Incident management.
• ^J Vulnerability management.
• ^J Information security risk management.
• ^J Asset Management.
• ^J Training and awareness in Information Security.
• ^J Management of cryptographic keys.
• ^J Computer encryption and access to removable devices.
• ^J System security requirements.
• ^J Configuration, maintenance and change management.
• ^J Network controls.
• ^J Supervision of Systems and Networks.
• ^J Suppliers management.
• ^J Organisation of information security.
• ^J Security in Cloud environments.
• ^J Project Security.
• ^J Systems auditability.

The Regulatory Framework has a global reach, it is under constant development and comprises the Information Security Policy, the Rules that emanate from it, and all procedures and technical instructions in compliance with Prosegur Cash processes and assets (physical and/or digital), including systems with financial impact.

With this strategy and guidelines, the department seeks to ensure the following dimensions:

• ^J Confidentiality, ensuring that the information is not placed at the disposal of or disclosed to unauthorised individuals, entities or processes.
• ^J Integrity, protecting the accuracy and completeness of the information and processing methods.
• ^J Availability, ensuring that the information is accessible and usable when required by an authorised individual, entity or process.
• ^J Authenticity, ensuring that an entity is what it claims to be, which may be data, users or assets.

• ^J Non-repudiation, ensuring the ability to prove the occurrence of an event or transaction and involvement of entities in it (which may be data, users or assets).
• ^J Traceability, ensuring that all actions on information or an asset may be traced and that these actions may be unequivocally associated with an individual or entity.

Internal control policies and procedures for activities subcontracted to third parties and valuation services entrusted to independent experts

Recurring activities in the process for preparation of financial information are subcontracted by Prosegur Cash to Prosegur Gestión de Activos, S.L. and supervised by the Company Chief Financial Officer. Prosegur occasionally seeks advice from independent experts in the following situations:

• a. Related Transactions with Prosegur Compañía de Seguridad, S.A.
• b. Assessment of the tax impact of corporate restructuring transactions.
• c. Tax advice in preparing tax returns subject to specific regulations.
• d. Appraisals of the fair value of certain assets, branches of activity or businesses.
• e. Verification of the effectiveness of the money laundering prevention system.
• f. Valuation of new company purchase price allocation.
• g. Accounting advice regarding the reporting of annual financial reports in ESEF format.
• h. Accounting advice on the treatment of certain specific operations.

When hiring external advisers, at least three proposals from the cost and professional qualification standpoints are requested and evaluated. Prosegur resorts to expert services that underpin valuations, judgements or accounting calculations only when they are registered with relevant Professional Associations or have equivalent certification, and when they are companies of renowned prestige on the market. The results of the evaluation, calculation or valuation entrusted to third parties on accounting, legal or tax issues are ultimately supervised by Prosegur Cash Financial Management and Legal Department.

Function in charge of accounting policies

The Corporate Consolidation department, that supports the Group from Prosegur Gestión de Activos, S.L. and that forms an integral part of Prosegur Compañía de Seguridad, S.A. Financial Management, is responsible for preparing, issuing, publishing and the subsequent application, by joint agreement with Prosegur Cash Financial Management, of the accounting standards to Prosegur Cash under the internal certification of the 3P process management system (Policies, Procedures and Processes). Likewise, it analyses and answers queries, doubts or conflicts about the interpretation and proper application of each of the policies.

The functions of the Corporate Financial Reporting Department includes the analysis of International Financial Reporting Standards in order to comply with:

• a. The establishment of Support Standards or procedures to help personnel related to the process of preparing financial information.
• b. The analysis of transactions that require specific accounting treatment.
• c. The resolution of queries on the application of specific accounting standards.
• d. The evaluation of possible future impacts on the financial statements resulting from new developments or changes in international accounting regulations.
• e. The list of external auditors in relation to the criteria applied, accounting estimates and judgements.
• f. The resolution of any doubt caused by the different interpretations of the regulations themselves.

The process for updating Prosegur Cash's accounting procedures (3P accounting rules) is performed yearly. Fluid communication is maintained with all managers involved in preparing the financial information, and any updates made following the latest regulatory changes are also distributed and placed at the disposal of employees with accounting duties.

The consolidated financial information is consolidated and prepared centrally. The first phase of this process begins in the subsidiaries of the Prosegur Cash Group, based on enterprise resource planning (ERP) platforms and under the supervision of Financial Management, which ensures that the financial information of these companies is reliable, complete and consistent. The individual and consolidated financial statements are consolidated and analysed based on the financial statements of the subsidiaries, and through computerised systems programmed for data extraction and aggregation.

A half-yearly reporting process exists to obtain the necessary information for the line items of the consolidated financial statements and consolidated half-yearly reports. Prosegur Cash's Accounting Plan is applied in all Prosegur Cash subsidiaries for the purposes of compiling information for the consolidation of financial statements.

9.5. SYSTEM SUPERVISION AND OPERATION

Supervision activities and results of the ICFR

In accordance with the provisions of Article 17.4 of the Board of Directors Regulation and other, consistent articles of the Audit Committee Regulation, the basic responsibilities of the Audit Committee include the following:

• ^J To inform the Shareholders General Meeting on issues raised in relation to those under the authority of the Committee and, specifically, on the result of the audit, explaining how this contributed to the integrity of the financial information and the role of the Committee in that process.
• ^J Ensuring that the annual accounts that the Board of Directors presents to the Shareholders General Meeting are prepared in accordance with accounting regulations and, in those cases in which the auditor has included any condition in their audit report, to clearly explain the opinion of the Committee on its content and scope in the Shareholders General Meeting, through the Chairman of the Audit Committee, making a summary of said opinion available to the shareholders at the time of publication of the call for the General Meeting, together with the rest of the proposals and reports.
• ^J Submitting the proposals for the selection, appointment, re-election and substitution of the external auditor to the Board of Directors, taking responsibility for the selection process in accordance with the provisions of the law, and for the conditions of their contracting and regularly requesting information from the auditor on the audit plan and its execution, in addition to preserving its independence in the exercise of its functions.
• ^J In relation to the external auditor, to: (i) in the event of the resignation of the external auditor, to examine the circumstances that motivated it; (ii) to ensure that the

remuneration of the external auditor does not compromise its independence; (iii) to supervise that the Company notifies the change in auditor to the National Securities Market Commission together with a statement on the possible existence of discrepancies with the outgoing auditor, and a description of these if they exist; (iv) to ensure that the external auditor holds a yearly meeting with a plenary meeting of the Board of Directors to report on the work performed and on the developments of the Company's accounting and risk situation; and (v) to supervise compliance with the audit agreement, endeavouring that the opinion on the financial statement and main content of the audit report are drafted clearly and precisely; and (vi) to ensure that the Company and external auditor respect rules in force on the provision of services other than auditing, restrictions to the concentration of the auditor business and, in general, all other rules on auditor independence.

^J Establishing and maintaining the appropriate relations with the external auditor to receive information on those issues that may pose a threat to its independence, for examination by the Committee, and any others related to the process of auditing accounts, and, when appropriate, the authorisation of services other than those prohibited, in the terms contemplated in the law, as well as those other communications provided for in the account auditing legislation and in the auditing regulations. In any case, the Audit Committee must receive an annual declaration of its independence from the auditor in relation to the entity or entities linked to it directly or indirectly, as well as detailed and individualised information on additional services of any kind provided and the corresponding fees received from these

entities by the aforementioned auditor, or by the persons or entities linked to it in accordance with the provisions of current regulations.

^J Each year, prior to the issuance of the accounts audit report, to issue a report expressing an opinion on whether the independence of the accounts auditor is compromised. This report must, in any case, be made on the reasoned assessment of the provision of each and every one of the additional services referred to in the previous point, considered individually and as a whole, other than the legal audit and in relation to the regime of independence or the regulations governing the account auditing activity.

^J Supervising the internal audit and, in particular, (i) ensure the independence and effectiveness of the internal audit function; (ii) propose the selection, appointment and dismissal of the head of the internal audit service; (iii) propose the budget for that service; (iv) approve or propose to the Board of Directors the approval of the internal audit orientation and annual work plan and the annual activities report, ensuring that its activity is mainly focused on the relevant risks (including of reputation); (v) receive regular information on its activities, and; (vi) verify that the senior management takes into account the conclusions and recommendations of its reports.

^J In turn, the Audit Committee is responsible for supervising the process for preparing and submitting the necessary financial information and presenting recommendations or proposals to the Board of Directors aimed at safeguarding its integrity. In relation to this, it is responsible for supervising and assessing the process for the preparation and integrity of financial and non-financial information, as well as

the systems for control and management of financial and non-financial risks relative to the Company and to the Group, including operational, technological, legal, social, environmental, political and reputational systems or those regarding corruption, checking for compliance with legal requirements, the appropriate definition of the consolidation perimeter, and the proper application of accounting criteria, disclosing this to the Board of Directors.

^J Supervising the effectiveness of the Company's internal control and risk management systems, including tax risks, and discussing any significant weaknesses in the internal control system detected during the audit with the accounts auditor, all without violating their independence. For such purposes, and where appropriate, it may present recommendations or proposals to the Board of Directors and the corresponding term for its follow-up. With regard to this, it corresponds to it to make proposals to the Board of Directors regarding the risk management and control policy, which will identify or determine the following at minimum: (i) the types of financial or non-financial risks (operating, technological, legal, social, environmental, political and reputational, including those regarding corruption) that the Company faces, with the financial or economic risks including contingent liabilities and other off balance sheet risks; (ii) a risk control and management model based on various levels, of which a commission specialising in risks will form part when sectoral rules so provide or the Company deems its appropriate; (iii) the risk level that the Company considers acceptable; (iv) the measures to mitigate the impact of risk events should they occur; and (v) the reporting and control system to be used to control and manage those risks'.

• ^J Supervising the operation of the Company's risk control and management unit responsible for: (i) to ensure the proper functioning of the risk control and management systems and, in particular, that all significant risks affecting the Company are properly identified, managed, and quantified; (ii) to actively participate in preparing the risk strategy and in taking important decisions regarding its management; and (iii) to ensure that risk control and management systems adequately mitigate the risks in accordance with the policy defined by the Board of Directors.
• ^J Analysing and reporting the economic conditions, the accounting impact and, if applicable, the proposed exchange equation of the structural and corporate modification operations that the Company plans to carry out, before their submission to the Board of Directors.
• ^J Reporting, in advance, to the Board of Directors, on all matters provided for in the law and the Articles of Association, and, in particular, on: (i) the financial information that the Company must publish periodically, and; (ii) the creation or acquisition of shares in entities of special purpose or entities domiciled in countries or territories that are considered tax havens.
• ^J Reviewing the issue prospectuses and any other relevant information that the Board of Directors must provide to the markets and their supervisory bodies.
• ^J To establish and supervise a system which enables the employees and other persons related to the Company, such as directors, shareholders, suppliers, contractors or subcontractors, to notify any irregularities of potential significance, including financial and accounting or any other type of irregularities regarding the Company that may be detected within the Company or its Group. Said mechanism must guarantee confidentiality and, in any case, provide for cases in which communications can be made anonymously,

respecting the rights of the complainant and accused.

• ^J To receive information and, as the case may be, to issue a report on all actions and decisions made by the Regulatory Compliance Department in the exercise of its authorities and, specifically, in relation to the provisions of the Company's Internal Code of Conduct on Matters relating to Securities Markets.
• ^J Supervising the application of the general policy regarding the communication of economic-financial, non-financial and corporate information, as well as communication with shareholders and investors, voting advisors and other stakeholders. It will also monitor the way in which the Company communicates and relates to small and medium shareholders.
• ^J To inform on related transactions or any others that involve or may involve conflicts of interest, in the terms established by Law.
• ^J In general, to ensure that the policies and systems established on internal control are effectively applied in practice.
• ^J With regard to the framework agreement on relations between the Company and Prosegur Compañía de Seguridad, S.A. (the 'Framework Agreement'), to perform the following:
• ^J To previously inform, in terms of their essential elements (price, term and purpose) on all related transactions between the Company and Prosegur Compañía de Seguridad, S.A., or among any of the companies of their respective groups, whose approval is reserved to the Board of Directors in accordance with the Framework Agreement.

• ^J To previously inform on all sections of the Company's periodic public information and annual corporate governance report that refer to the Framework Agreement and to related transactions between the Group and the Prosegur Group.
• ^J To inform on situations in which overlapping business opportunities exist between companies of the Group and the Prosegur Group and to monitor compliance with the provisions of the Framework Agreement on this topic.
• ^J To periodically inform on compliance with the Framework Agreement.
• ^J To previously inform on any proposal for amendment of the Framework Agreement, as well as any possible transaction proposals aimed at putting an end to disputes that may arise among its signatories on the occasion of its application.

Prosegur Cash has an Internal Audit Department that is functionally dependent upon the Audit Committee. Its objectives and functions include (i) assisting the Audit Committee in the objective fulfilment of its responsibilities, (ii) verifying proper risk management and (iii) ensuring the integrity and reliability of the accounting information.

The Internal Audit Department has prepared a programme for ICFR review that is regularly executed over two-year periods and is integrated in the annual work schedules submitted to the Audit Committee for approval.

The Internal Audit Department continuously updates its verification programmes in order to adapt these to possible changes to ICFR made by the Financial Information Department that provides the Group with support from Prosegur Gestión de Activos.

In 2021, significant processes were reviewed in relation to financial information in Spain and other European and Latin American subsidiaries.

The Internal Audit Department verifies the state of implementation of the recommendations included in its audit reports, including those related to the ICFR verifications. In 2021, two semi-annual reports were issued on the implementation of the recommendations sent to the members of the Audit Committee.

As Prosegur Cash's risk control and management unit, the Risk Committee ensures the proper functioning of the risk control and management systems and, in particular, that all significant risks that affect the company are properly identified, managed, and quantified. Prosegur Cash actively participates in preparing the risk strategy and in the important decisions regarding its management and ensures that risk control and management systems adequately mitigate the risks.

In coordination with the Internal Audit Department, quarterly evaluations are made of critical risk management that may possibly include financial reporting risks, based on key risk indicators, their comparison with the established limits and their evolution over time. The results are presented to the Corporate Risk Committee for analysis and to the Audit Committee for the supervision of their management.

Detection and management of weaknesses

During 2021, external auditors participated in two meetings of the Audit Committee to review the conclusions of their audit of the financial statements as well as the procedures conducted within the context of the annual audit of planning and progress on the auditing task of half-yearly figures. Likewise, the external auditors report on any internal control weaknesses and opportunities for improvement that they have identified in the performance of their work.

The Chief Financial Officer, with responsibility for preparing the financial statements and

interim financial information that Prosegur Cash provides to the markets and its supervisory boards, attends Audit Committee meetings to review and discuss relevant matters in the process of preparing and presenting regulatory financial information.

In each meeting of the Auditor Committee, the Internal Audit Director provides conclusions of verification on the operation and efficacy of ICFR procedures, control weaknesses identified, any recommendations made and the status of execution of the action plans resolved to mitigate them.

9.6. REPORT OF THE EXTERNAL AUDITOR

Prosegur Cash has submitted the ICFR information sent to the markets for financial year 2021 for review by the external auditor, whose report is included in the following pages. The scope of the auditor's review procedures has been determined to be consistent with the Guidelines for Action and the model auditor report referring to information concerning the July 2013 internal control system on financial reporting of listed companies, issued by the Spanish Association of Chartered Accountants.

Tel: 902 365 456 Fax: 915 727 238 ey.com

-

-

-

STATEMENT OF RESPONSIBILITY FOR THE ANNUAL FINANCIAL REPORT OF 2021

The members of the Board of Directors of Prosegur Cash, S.A. hereby confirm that, to the best of our knowledge, the Consolidated Annual Accounts for 2021, authorised for issue by the Board of Directors at the meeting held on 22 February 2022 and prepared in accordance with applicable accounting principles and the European Unique Electronic Format, present a fair view of the equity, financial position and profit/ (loss) of Prosegur Cash, S.A. and the consolidated subsidiaries taken as a whole, and that the consolidated directors' reports provides a reliable analysis of the Company's performance and results and the position of Prosegur Cash, S.A. and its consolidated group taken as a whole, together with the main risks and uncertainties facing the Group.

Madrid, 22 February 2022.

Mr Christian Gut Revoredo	Mr Pedro Guerrero Guerrero
Executive President	Vice-president
Mr José Antonio Lasanta Luri	Ms Chantal Gut Revoredo
Managing Director	Director
Mr Antonio Rubio Merino	Mr Claudio Aguirre Pemán
Director	Director
Ms María Benjumea Cabeza de Vaca	Ms Ana Inés Sainz de Vicuña Bemberg
Director	Director

Mr Daniel Guillermo Entrecanales Domecq Director

DIRECTORS' RESPONSIBILITY OVER THE CONSOLIDATED ANNUAL ACCOUNTS

The Consolidated Annual Accounts of Prosegur Cash, S.A. and subsidiaries are the responsibility of the Directors of the parent company, and have been prepared in accordance with international financial reporting standards endorsed by the European Union and according to the European Unique Electronic Format.

The Directors are responsible for the completeness and objectivity of the Annual Accounts, including the estimates and judgements included therein. They fulfil their responsibility mainly by establishing and maintaining accounting systems and other regulations, supporting them adequately using internal accounting controls. These controls have been designed to provide reasonable assurance that the Company's assets are protected, that transactions are performed in accordance with the authorisations and regulations laid down by Management and that accounting records are reliable for the purposes of drawing up the Annual Accounts. The automatic correction and control mechanisms are also a relevant part of the control environment, insofar as corrective action is taken when weaknesses are observed. Nevertheless, an effective internal control system, irrespective of how perfect its design may be, has inherent limitations, including the possibility of circumventing or invalidating controls, and can therefore provide only reasonable assurance in relation with preparation of the Annual Accounts and the protection of assets. However, the effectiveness of internal control systems may vary over time due to changing conditions.

The Company evaluated its internal control system at 31 December 2021. Based on this evaluation, the Directors believe that existing internal accounting controls provide reasonable assurance that the Company's assets are protected, that transactions are performed in accordance with the authorisations laid down by Management, and that the financial records are reliable for the purposes of drawing up the Annual Accounts.

Independent auditors are appointed by the shareholders at their Shareholders General Meeting to audit the Annual Accounts, in accordance with the technical standards governing the audit profession. Their report, with an unqualified opinion, is attached separately. Their audit and the work performed by the Company's internal services include a review of internal accounting controls and selective testing of the transactions. The Company's management teams hold regular meetings with the independent auditors and with the internal services in order to review matters pertaining to financial reporting, internal accounting controls and other relevant audit-related issues.

Mr Javier Hergueta Vázquez

Chief Financial Officer