Slide 1: Q1-2023 Results: Presentation to Financial Analysts
Q 1 - 2 0 2 3 R E S U LT S P R E S E N TAT I O N T O F I N A N C I A L A N A LY S T S 2 5 M AY 2 0 2 3
Slide 2: Net income at €61.2m – RoATE stands at 13.6%
Q1-2023 RESULTS: NET INCOME AT €61.2M – ROATE STANDS AT 13.6% 01 02 03 04 Q1-2023 Q1-2023 K E Y TA K E - APPENDICES HIGHLIGHTS R E S U LT S A W AY S & OUTLOOK Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust. You can check the aut
Slide 3: Part 1: Q1-2023 Highlights
coface FOR TRADE PART 1 Q1-2023 HIGHL
Slide 4: Coface reports Q1-2023 net income at €61.2m, up 17.0%
COFACE REPORTS Q1-2023 NET INCOME AT €61.2M, UP +17.0% Coface applies IFRS 17 and IFRS 9 accounting standards since 1st January 2023. All comparisons are made with IFRS 17 pro forma 2022 numbers disclosed on 27th April 2023 Turnover reached €475m y-t-d, up +11.4% at constant FX and perimeter › Trade
Slide 5: Focused on driving value
FOCUSED ON DRIVING VALUE C O N T I N U I N G T O E X PAN D C O FAC E C O N T I N U I N G T O D E R I S K R E AL E C O S Y S T E M F R O M A S M AL L B AS E E S TAT E P O R T F O L I O • Current exposure at €200m exclusively through investment • Historical Business information (60% of total) growing
Slide 6: Part 2: Q1-2023 Results
coface FOR TRADE PART 2 Q1-2023 RESULT:
Slide 7: Turnover growth at 11.4% with favourable business mix evolution
TURNOVER GROWTH AT 11.4% WITH FAVOURABLE BUSINESS MIX EVOLUTION 11.0% 11.4% Total revenue up +11.4% vs Q1-22 pro forma at constant FX and perimeter In €m 475 428 › Trade credit insurance* premiums growing at +10.9% at constant FX Gross Earned Premiums due to past client activity and record high rete
Slide 8: High retention across regions while activities reflect local economies
HIGH RETENTION ACROSS REGIONS WHILE ACTIVITIES REFLECT LOCAL ECONOMIES Western Europe Northern Europe Central Europe Mediterranean & Africa 21.1% 21.8% 7.9% 7.2% (4.1)% (4.6)% 14.9% 17.2% 133 97 95 102 116 80 47 45 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Retention and activity. High retentio
Slide 9: Positive client activity and record high retention
POSITIVE CLIENT ACTIVITY AND RECORD HIGH RETENTION production* 51 New production at €32m, close to pre-covid New 40 35 32 levels. Q1-20 Q1-21 Q1-22 Q1-23 95.7% Retention 94.3% 93.8% 94.8% Retention rate at record level in a competitive rate* market. Q1-20 Q1-21 Q1-22 Q1-23 2.9% effect* Price Pricing
Slide 10: Gross loss ratio at 40.7%, slow normalization is under way
GROSS LOSS RATIO AT 40.7%, SLOW NORMALIZATION IS UNDER WAY Loss ratio before reinsurance and including claims handling expenses, in % › Slow normalization is under way: 41.8 35.5 40.7 ‒ Number of claims increasing since mid-21, now nearing pre-crisis 31.5 32.4 level ‒ Large losses increasing but sti
Slide 11: Loss ratio reflects different regional economical trends
LOSS RATIO REFLECTS DIFFERENT REGIONAL ECONOMICAL TRENDS Loss ratio before reinsurance, including claims handling expenses – in % 9%* 6%* 6%* Group North America Latin America Asia Pacific 180.7 63.7 51.8 48.6 35.5 40.7 72.3** 31.8 29.2 21.4 19.0 50.5 14.4 8.8 8.2 6.9 FY-20 FY-21 FY-22 Q1-23 FY-20 F
Slide 12: Continuation of large cases booking
CONTINUATION OF LARGE CASES BOOKING Loss ratio before reinsurance (by quarter), including claims handling expenses – in % 9%* 6%* 6%* Group North America Latin America Asia Pacific 165.8 180.7 68.7 47.2 19.1 29.2 31.5 32.5 41.8 35.5 40.7 31.8 -2.0 41.2 13.9 14.3 15.0 0.0 -52.3 -15.7 Q1-22 Q2-22 Q3-2
Slide 13: Operating leverage and continued investments
OPERATING LEVERAGE AND CONTINUED INVESTMENTS 10.7% 10.9% Q1-23 vs Q1-22 at constant FX & 215 220 209 perimeter In €m 195 189 53 50 50 +8.8% 46 47 External costs (commissions) 162 170 159 +11.5% 143 148 Internal costs Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 V% V% ex. FX › Insurance costs are growing 7.9%, a sl
Slide 14: Reinsurance results benefit from past very low loss activity
REINSURANCE RESULTS BENEFIT FROM PAST VERY LOW LOSS ACTIVITY (in €m) Q1-22 Q1-23 › Premium cession rate stable at 27.3% Gross earned premiums 359.2 395.3 › Claims cession rate at 27.4% in line with premium cession rates Net earned premiums 261.2 287.6 as public schemes have no additional impact 27.3
Slide 15: Slightly improved net combined ratio at 66.3%
SLIGHTLY IMPROVED NET COMBINED RATIO AT 66.3% › Net combined ratio improved to 66.3% (vs 68.1% in Q1-22) but (1.7) ppt increases from combined ratio excluding public schemes (56.0% in Q1-22) reflecting risk normalization and some large cases. In % 68.1 69.8 73.5 › Cost ratio down 2.1 ppts vs Q1-22 w
Slide 16: Financial portfolio: increased underlying income with higher rates
FINANCIAL PORTFOLIO: INCREASED UNDERLYING INCOME WITH HIGHER RATES €m Q1-23 Investment Real Estate Income from investment portfolio without gains on sales** 14.6 Equities 7% FVPL and gains on sales and impairement, net of hedging*** (8.6) 3% FX effect (6.3) Other (2.3) Loans, Deposit & other Total N
Slide 17: Q1-2023 net income at €61.2m up 17%
Q1-2023 NET INCOME AT €61.2M UP 17% Income statement items - in €m Q1-22 Q1-23 › Net earned premiums up by +10.1% at €288m on growing revenues Current operating income 82.0 90.4 Other operating income and expenses (1.2) (0.3) Operating income 80.8 90.0 › Operating income up +11.4% Finance costs (5.1
Slide 18: RoATE stands at 13.6%, up 0.9 ppt
ROATE STANDS AT 13.6%, UP 0.9 PPT 0.0 61.2 24.2 (3.5) 2,100.4 Change in equity 2,018.6 In €m IFRS Equi ty a ttributable to Distribu tio n to Net income impact Revaluation reserve Treasury shar es, cur rency IFRS Equi ty a ttributable to owners of the paren t shareh olders (financial instr uments) tr
Slide 19: Part 3: Key Take-aways & Outlook
PART 3 KEY TAKE-AWAYS & OUTLOOK
Slide 20: Key take-aways & outlook
KEY TAKE-AWAYS & OUTLOOK As expected, the economic cycle has confirmed its slowdown but at a slower pace than expected › Inflation peak seems now behind us and unemployment remains low › Number of insolvencies continues to rise in most economies › US-centred banking crisis adds additional uncertaint
Slide 21: Part 4: Appendices
coface FOR TRADE PART 4 APPENDICES,»
Slide 22: Key figures (1/2)
KEY FIGURES (1/2) QUARTERLY AND CUMULATED FIGURES Income statements items in €m - quarterly figures Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 % % ex. FX* Gross earned premiums 359.2 374.0 403.5 379.0 395.3 +10.1% +10.9% Other revenues 68.8 71.6 70.1 73.0 79.8 +16.0% +13.9% REVENUE 428.0 445.6 473.5 452.0 475.1
Slide 23: Key figures (2/2)
KEY FIGURES (2/2) REVENUE BY REGION: QUARTERLY AND CUMULATED FIGURES Total revenue - by quarter - in €m Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 V% ex. FX* Northern Europe 94.7 92.8 92.7 92.9 102.2 +7.2% Western Europe 79.8 87.0 103.9 88.9 96.6 +21.8% Central Europe 46.9 42.6 48.5 43.9 45.0 (4.6)% Mediterranea
Slide 24: Combined ratio calculation
COMBINED RATIO CALCULATION In €k Q1-2022 Q1-2023 › Combined ratio before reinsurance Earned Premiums (B) (C) Gross earned premiums [A] 359,167 395,345 loss ratio before reinsurance + cost ratio before reinsurance (A) (A) Ceded premiums (97,919) (107,789) Net earned premiums [D] 261,248 287,556 › Com
Slide 25: Q1-23 results vs consensus
Q1-23 RESULTS VS CONSENSUS # of in M€ Consensus Q1-2023 Spread Comment replies Total revenue 6 462 475 +13.4 TCI premiums grow with retention and client activity Gross Earned Premiums 6 388 395 +7.3 Good performance from specialties Net Earned Premiums 6 283 288 +5.0 NEP/GEP 6 72.8% 72.7% (0.1) ppt
Slide 26: Financial calendar & investor relations contacts
FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own shares transactions Next Event Date Own shares transactions H1-2023 Results 10 August 2023 Liquidity Buy-back Date LTIP TOTAL % Total of Voting Agreement (cancellation) 9M-2023 Results 14 November 2023 (in shares) # Shares rights 31/03/20
Slide 27: Important legal information
IMPORTANT LEGAL INFORMATION IMPORTANT NOTICE: Coface Group’s current beliefs, assumptions and expectations of its future performance, taking into account all information currently available. The Coface This presentation has been prepared exclusively for the purpose of the disclosure Group is under n