Coface Sa · EURONEXT:COFA

Coface Sa — Q1 2015 Earnings Presentation

20 slides from Coface Sa's earnings presentation, May 5, 2015

  1. Slide 1: Q1-2015 results

    Q1-2015 results Coface begins 2015 with robust results: +5.3% total turnover and €40m net profit May 5th, 2015 (Unaudited Results)

  2. Slide 2: Important legal information

    Important legal information IMPORTANT NOTICE: This presentation has been prepared exclusively for the purpose of the disclosure of Coface Group’s Q1-2015 results, released on May 5th, 2015. This presentation includes only summary information and does not purport to be comprehensive. The Coface Group

  3. Slide 3: Slight pick-up in global economy… but still monitoring several risks

    Slight pick-up in global economy… …but still monitoring several risks Contribution to world growth GDP growth 0.0 4.6% 2013 (0.1) 0.5 0.3 1.0 0.2 0.8 2.7% 4.3% 4.2% 3.0% 2.9% 2.8% 2.7% 2.4% 2.1% 2.2% 1.7% 1.9% 1.7% 0.0 1.3% 1.6% 1.4% 1.5% 2014 0.5 0.2 0.3 1.0 0.1 0.8 2.8% 1.3% 1.0% 0.9% 0.8% 0.4% 0.

  4. Slide 4: Q1-2015 Results

    Q1-2015 Results 2014 comparative has been restated - IFRIC 21* Operating income Total turnover and premiums Net combined ratio and net income (group share) Growth vs. Q1 2014* +5.3% +2.3%1 +6.8% +2.9%1 +11.0% +5.9%1 +6.1%1-5 (0.2 ppts) 390 Q1 2015 79.7% 77.7% 77.5% -0.6%1 +10.7%1-5 €m 307 3 239 29.3

  5. Slide 5: Sound commercial performance

    Sound commercial performance €m  production1 New 53 43 42 • New production remains at a sustainable level 34 33 33 32 32 31 31 30 24 26 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 92.4% 93.2% 91.8%  Retention rate1 • Client loyalty still

  6. Slide 6: Turnover and Premiums

    Turnover and Premiums Total turnover GEP NEP Earned fees 5.3% +2.3%* 6.8% +2.9%* +11.0% +5.9%* +2.5% +0.7%* 39 38 Q1 2015 369 377 €m 296 288 215 228 Q1 2014* Q1 2015* Q1 2014* Q1 2015* Q1 2014* Q1 2015* Q1 2014* Q1 2015* Q1 2015 Fees / GEP 13.1%* Growth Growth * * at constant FX and perimeter Financ

  7. Slide 7: Overview of turnover by region

    Overview of turnover by region Northern Europe Western Europe Central Europe Mediterranean and Africa Turnover (2.4)% (0.9)% Turnover (2.1%) (3.9)% Turnover (0.8%) (0.9%) Turnover +13.4% +11.3% €m €m 122 120 €m €m 94 91 66 28 58 29 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Asia

  8. Slide 8: Loss ratio controlled in spite of still uncertain environment

    Loss ratio controlled in spite of still uncertain environment Gross loss ratio evolution1 51.5% 51.1%  49.8% 48.6% 48.9% • Slight increase of the loss ratio 47.4% compared to previous quarters 45.2% FY 2012 FY 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Current year and all year gross loss ratio2

  9. Slide 9: Costs under control

    Costs under control Internal costs growing at Expenses under control slower pace than premiums 5.3% €m 172 181 33 39 2.6% 2.9% 139 143 1.2% Q1-2014 Q1-2015 GEP Internal costs Q1-2014 (Restated - IFRIC 21) vs. Q1-2015 growth at Internal costs External acquisition costs constant FX and perimeter  Str

  10. Slide 10: Good technical results confirmed by reinsurers

    Reinsurance result Ceded premium / GEP Reinsurance impact 25% Q1-2014 Q1-2015 22% -13 Q1-2014 Q1-2015 -24 Ceded claims / Total claims Good technical results confirmed by reinsurers 23% 18% • Improved reinsurance conditions for the 2015 renewal • Cession rate maintained at 20% • Extended XS Cover Q1

  11. Slide 11: Net combined ratio improving

    Net combined ratio improving Evolution in net combined ratio 2014 Net combined ratio : 79.7% 77.7% (0.2 ppts.) 77.5% 86.0% 77.7% 78.2% 76.4% 77.5% 33.9% 25.4% +2.3ppts*. 27.7% 25.4% 28.7% 29.0% 27.7% 52.3% 49.8% 52.3% 49.5% 47.4% 52.1% 49.8% (2.5 ppts.) Q1-2014* Q1-2015* Q1-2014* Q2-2014* Q3-2014* Q

  12. Slide 12: Investment income

    Investment income Progressive portfolio diversification 1 Equities Investment 8%  Real Estate 2% Loans, Deposit & Our prudent and proactive investment other financial strategy is delivering: 20% Total € 2.65bn1 • Stable accounting yield Bonds 70% • Improved economic yield €m Q1 2014 Q1 2015 2 Incom

  13. Slide 13: Shareholders' equity

    Shareholders’ equity Changes in equity €m 27 27 1 1 819 1,725 40 Total IFRS Equity Net income Revaluation Currency Other Total IFRS Equity Dec 31, 2014 impact reserve (financial translation variations Mar 31, 2015 (IFRIC21 restated) instruments AFS) differences Return on Average Tangible Equity (RoA

  14. Slide 14: Investor Relations

    Investor Relations • COFACE SA is a société anonyme (joint-stock corporation), with a Board of Shareholder composition Issuer Directors (Conseil d’Administration) incorporated under French Law Employees • Registered No. 432 413 599 with the Nanterre Trade and Companies 0.24% Registered Register & Re

  15. Slide 15: Annexes

    Annexes

  16. Slide 16: Q1-2015 - Key Figures

    Q1-2015 - Key Figures Q1-2014 % % Income statement items - in €m Q1-2014 Q1-2015 Q1-2014 Restated IFRIC Restated IFRIC 21* 21* vs Q1-2015 like-for-like 1 Consolidated revenues 370 370 390 5.3% 2.3% of which gross earned premiums 288 288 307 6.8% 2.9% Underwriting income after reinsurance 46 45 50 10

  17. Slide 17: Overview of net combined ratio calculations

    Overview of net combined ratio calculations Adjusted Net Earned Premiums Adjusted net operating expenses Q1-2014 Q1-2014 In €k Q1-2014 Restated Q1-2015 In €k Q1-2014 Restated Q1-2015 IFRIC 21 IFRIC 21 A Gross Earned Premiums 287,519 287,519 306,935 Total operating expenses exc. relocation 171,446 17

  18. Slide 18: Financial strength acknowledged by rating agencies

    Financial strength acknowledged by rating agencies  Coface is rated ‘AA-’ by Fitch Ratings and ‘A2’ by Moody’s, both with a stable outlook  The positive assessments by the two agencies is based on 3 key drivers: 1. Coface's strong competitive position in the global credit insurance market 2. Robus

  19. Slide 19: A strengthened and experienced management team

    A strengthened and experienced management team CEO Jean-Marc Pillu 15 years of experience in insurance industry & former General Manager of Euler Hermes Working for Coface since 2010 Group central functions Risk Underwriting, Info & Claims CFO Risks, Organisation & IT Manager Manager Carine Pichon N

  20. Slide 20: Corporate governance

    Corporate governance Board of Directors Laurent MIGNON Chairman CEO of Natixis BPCE (Marguerite Non independent members Jean ARONDEL Jean-Paul DUMORTIER BERARD-ANDRIEU) ► BPCE ► BPCE ► BPCE Laurent ROUBIN Pascal MARCHETTI ► BPCE ► BPCE Sharon MACBEATH Olivier ZARROUATI Eric HÉMAR Independent members

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