Coface Sa · EURONEXT:COFA
Coface Sa — Investor Day (September 2016)
91 slides from Coface Sa's investor day presentation, Sep 22, 2016
Slide 1: Investor Day: Fit to Win 3 year Plan
Investor Day Fit to Win 3 year Plan London, September 22nd, 2016
Slide 2: Today's agenda
Today’s agenda Start 10:30 am 1 Introduction: Fit to Win 3 year plan - Xavier Durand 11:00 am 2 Economic outlook - Julien Marcilly 11:20 am 3 Strengthen information & risk management - Nicolas de Buttet 11:40 am 4 Improve operational efficiency & client service - Carine Pichon 12:00 am Q & A session
Slide 3: Introduction
1 Introduction Xavier Durand CEO
Slide 4: 8 intense months preparing in depth transformation of Coface
8 intense months preparing in depth transformation of Coface Addressed issues • Emerging risk performance Ran diagnosis • Client defiance • Met >100 clients, versus risk actions >100 brokers, >50% employees Defined strategy • State Guarantees base “limbo” • Shared vision • Met investors, Launched in
Slide 5: Trade credit insurance is an attractive industry
Trade credit insurance is an attractive industry Continued historic growth Strong structural positives Trade Credit Premiums growth (1) • Ability to maintain returns through the cycle +4.9% +3.2% – Cancellable coverage is bulk of business – Less exposed to financial markets volatility • Limited # of
Slide 6: Coface can leverage strong historic capabilities
Coface can leverage strong historic capabilities Unparalleled global presence & network Strong expertise 70 years of experience through key cycles Integrated systems and infrastructure • Data management • Risk • Collections Strong client base • ~50,000 companies in 100 countries* • ~90% retention ra
Slide 7: But the environment for Coface has evolved
But the environment for Coface has evolved Slower, more Increased market risk Impact of technology Loss of State bifurcated growth volatility Guarantees business • Progressive • Lower growth & price commoditization • Economic pressure in mature of information & Financial • Contribution shortfall mar
Slide 8: In this environment, Coface needs significant change
In this environment, Coface needs significant change Key issues Actions • Aggressive expansion in Emerging Markets • Adapt growth strategy to market realities – Under estimated volatility • Continue investment in risk & information – Untested teams and infrastructure infrastructure • Loss of State G
Slide 9: Vision: to be the most agile, global trade credit partner in the industry
Vision: to be the most agile, global trade credit partner in the industry Financial Large Mid-market SMEs Partners retail institutions corporates bankers – B2B2B Clear ambition Fit to Win principles Specialized sales close • Most global credit insurer to the client • Prioritize value creation over “
Slide 10: Strategic plan around 2 pillars and 3 priorities
Strategic plan around 2 pillars and 3 priorities Ambition Transformation Benefits 1 A Position Coface Strengthen Return as the most agile, Risk Management to normalized loss ratio global trade credit & Information over the cycle partner in the industry Bring infrastructure into coherence with risk r
Slide 11: Strengthen information & risk management
1A Strengthen information & risk management Invest in information quality Reinforce UW processes Upgrade & enhance risk talent & data tools in higher risk segments & resources • Enhance data • Align commercial • Upgrade leadership purchasing policy & risk underwriting (UW) (e.g.: Asia, risk in key s
Slide 12: Fit to Win will utilize State Guarantees gain to invest in efficiency
1B Fit to Win will utilize State Guarantees gain to invest in efficiency while enhancing client service levels Actions 1 1− Drive sourcing & real estate utilization 4 2− Leverage centers of excellence €30m savings in 2018 2 3− Simplify and automate processes 4− Streamline organization 3 Utilize €70m
Slide 13: Driving differentiated growth strategies by market
1C Driving differentiated growth strategies by market Geographical vision Strategy A Drive sales efficiency & innovate to differentiate Stability Underpenetrated Mature B Invest in distribution Emerging stable C Seek scale through safe growth High risk TCI Penetration Stabilize risk and demonstrate
Slide 14: Differentiate value proposition for key segments
1C Differentiate value proposition for key segments Segment needs Strategy • BS and P&L optimization • Increase quality Large • Credit process management and hedging of service, retention corporates & selection • Project protection • Credit process management • Adapt offer and develop Mid-market dis
Slide 15: Enhancing management framework
Enhancing management framework From To Replicate successful Western Europe Build tailored infrastructure in each market, 1 organization everywhere around the globe 1 prove capacity to handle risk, then invest to grow Strong functional matrix for enhanced 2 Centralized decision making 2 controllershi
Slide 16: Driving a cultural transformation to support execution
Driving a cultural transformation to support execution Client focus Courage & accountability • Client satisfaction at the center: • Bottom line accountability requiring offers, service levels & flexibility to balance growth versus risk • Connected to the market: • Transparent delegation and reportin
Slide 17: Clear financial ambitions supported by aligned incentives
Clear financial ambitions supported by aligned incentives 1 Position Coface 2 Steer business towards as the most agile, global trade more efficient capital model credit partner in the industry RoATE expectations ≥ 9% ~8% C B 3.3% A ~2.2% H1 2016 H1 2016 Restated* Risk management Operational Selected
Slide 18: Wrap-up: Fit to Win '16 to '19 will transform Coface
Wrap-up: Fit to Win ‘16 to ‘19 will transform Coface • Become the most agile trade credit partner in the industry – Reinforce risk management – Drive operational efficiency & client service – Drive differentiated growth strategies • Optimize capital • Enhance management structure & execution • Drive
Slide 19: Economic outlook
2 Economic outlook Julien Marcilly Chief Economist
Slide 20: Economic Research: a unique expertise at the service of Coface and its clients
Economic Research: a unique expertise at the service of Coface and its clients Externally Economic expertise supporting Coface clients with important information Contribute and risk decision making to marketing policy, brand awareness Strong flow of economic publications and events and image Interna
Slide 21: Challenging global environment with lower growth, lower inflation and higher debt
Challenging global environment with lower growth, lower inflation and higher debt World: GDP, inflation and trade (yoy growth in %) Global debt by type (USD trillion) 8 199 200 Government GDP Households Inflation 180 Financial Good exports 7 Non financial Corporates 58 160 141 140 6 120 33 40 100 87
Slide 22: Advanced economies: lower interest rates mitigate corporate credit risk
Advanced economies: lower interest rates mitigate corporate credit risk Business insolvencies: % growth between June 2014 and June 2016 Benchmark corporate bond yield (5-year AA, %) 8 US Spain -43.3% Japan 7 UK Japan -17.4% Euro zone 6 US -16.2% 5 UK -14.8% 4 Germany -7.8% 3 2 Italy -2.5% 1 France -
Slide 23: Advanced economies still deal with legacy of global financial crisis
But advanced economies still have to deal with the legacy of global financial crisis Europe: non performing loans (as a % of total) Political uncertainty index 40 900 Europe average Spain Greece UK 35 800 France US Ireland 700 30 Italy Portugal 600 25 500 20 400 15 300 10 200 5 100 0 0 Sources: ECB,
Slide 24: Emerging Markets: the adjustment process is not over
Emerging Markets: the adjustment process is not over, especially at the “micro” level Emerging market GDP growth and oil price China: corporate Bond Defaults and NPL 9% 80% 20 20 Corporate Corporatebond bond defaultsdefaults 77 NPL ratio (+ special mention loans, RHS) 18 18 NPL ratio (+ special ment
Slide 25: Emerging Markets: differentiation is essential…
Emerging Markets: differentiation is essential… GDP growth: gap between Emerging Markets Standard deviation of GDP growth in Emerging and Advanced Economies (%) Markets (152 countries) 2006 7 2007 2008 6.0 6 2009 2010 2011 5 2012 2013 4.3 2014 4 2015 2016 2017 3 2018 2019 2 2 4 6 8 10 12 2005-2008 A
Slide 26: …on a country by country basis
…on a country by country basis World: expected GDP growth and Current account balance by country (as a % of GDP) 10 Mature Emerging stable 5 High risk Current account 0 balance -5 -10 -15 -2 -1 0 1 2 3 4 5 6 7 8 GDP growth Sources: Coface, IMF Investor Day – September 22nd, 2016 26
Slide 27: …and on a sector by sector basis
…and on a sector by sector basis SECTOR RISK ASSESSMENT WESTERN EMERGING NORTH LATIN CENTRAL MIDDLE EAST SECTOR EUROPE ASIA AMERICA AMERICA EUROPE + TURKEY Agrofood EMERGING ASIA Automotive CHINA INDIA Chemical Construction Energy ICT* Metals Paper-wood Pharmaceuticals Retails Textile-clothing Trans
Slide 28: Fit To Win has to deal with all time high country risk
Fit To Win has to deal with all time high country risk 160 countries under the magnifying glass A unique methodology • Macroeconomic expertise in assessing country risk • Comprehension of the business environment • Microeconomic data collected over 70 years of payment experience Sources: Coface Inve
Slide 29: Strengthen information & risk management
Strengthen 3 information & risk management Nicolas de Buttet Information, Risk Underwriting and Claims Director
Slide 30: Coface has a solid risk prevention infrastructure
Coface has a solid risk prevention infrastructure Key figures Claims Core Information Risk & collection Information competencies gathering underwriting management 49 teams Database Portfolio Volume 684 FTEs 16 m companies 50,000 contracts 60,000 Claims/year 5m credit-limits 50,000 Collection Risk un
Slide 31: Increased losses in Emerging Markets highlighted need for continued investment
But increased losses in Emerging Markets highlighted need for continued investment Strong increase in claims in 2015… Impacting group gross loss ratio in 2016 Asia + Latam average monthly claim amount 61.9% +80% -20% 51.1% 51.0% 47.6% 2014 2015 2016 FY-2013 FY-2014 FY-2015 H1-2016 • First impacted E
Slide 32: Past 'One size fits all' approach shows limitations
Past ‘One size fits all’ approach shows limitations Efficient organization …not sufficient in Mature Markets… in Emerging Markets • Standardized & available information • Unstable information supply chains Information • Reliable and monitored information • Uneven information quality & reliability •
Slide 33: First set of actions implemented in the last months
First set of actions implemented in the last months Achievements • Aligned Economic research & risk UW ranking methodology Information Adjusted country ratings – Improves coherence of communications with customers – Improves consistency of risk evaluation over time 54% EM Exposure reduction from 01/
Slide 34: Strengthen information & risk management
Strengthen information & risk management Invest in information quality Reinforce UW processes Upgrade & enhance risk talent & data tools in higher risk segments & resources • Enhance data • Align commercial • Upgrade leadership purchasing policy & risk underwriting (UW) (e.g.: Asia, risk in key sect
Slide 35: Fit to Win: Invest in information quality & data tools
Fit to Win: Invest in information quality & data tools Actions Investment Objectives • Enhance information sources in 18 countries, • Increase reliability by Revisit Data mainly on emerging countries signing up new sources purchasing • Increase monitoring policy • Examples: China, Mexico, Turkey… rh
Slide 36: Fit to Win: Reinforce UW processes in higher risk segments
Fit to Win: Reinforce UW processes in higher risk segments Guidelines Objectives • Evolve exposure monitoring system from Develop more Increase reduction / 10 to 150 segments granular risk expansion action accuracy Before : 10 segments (Debtor Risk Assessment : DRA) approach & efficiency Now : 150 s
Slide 37: Fit to Win: Upgrade & enhance risk talent & resources
Fit to Win: Upgrade & enhance risk talent & resources in key areas Actions Objectives • Create new senior expert teams based in HQ to • Enhanced risk support country UW & collection teams (+6 FTEs) management Reinforce • Monitor and support teams • Add 25 FTEs focused on information enhancement regi
Slide 38: In summary, building a stronger, more tailored risk infrastructure
In summary, we are building a stronger, more tailored risk infrastructure to match market risk realities Fit to Win aims at returning to normalized loss ratio over the cycle • Capitalize on our expertise and draw on our strengths to consolidate Coface organization • Move from “One size fits all” to
Slide 39: Improve operational efficiency & client service
Improve operational efficiency 4 & client service Carine Pichon CFO
Slide 40: Coface has demonstrated good internal costs control
Coface has demonstrated good internal costs control Evolution of internal costs vs. inflation Evolution of staff (2011-2015) 10.4% Total -11.7% 7.7% Western Europe -18.9% 5.1% 2.5% Northern Europe -15.9% North America -13.4% 0.3% Mediterranean & Africa -2.2% 0.0% -1.5% Latin America 1.3% -2.7% 2011
Slide 41: Environment requires efficiency gains and stronger focus on client service
Environment requires both continued efficiency gains and stronger focus on client service State Guarantees Slowing & bifurcated Revenue challenge New technologies activity transfer growth in mature markets opportunity GDP Growth in % Western Europe Turnover 7.8 €m Cost ratio (10.0)% * +5 ppts • Diff
Slide 42: Fit to Win will utilize State Guarantees gain to invest in efficiency
1B Fit to Win will utilize State Guarantees gain to invest in efficiency while enhancing client service levels Actions 1 1− Drive sourcing & real estate utilization 4 2− Leverage centers of excellence €30m savings in 2018 2 3− Simplify and automate processes 4− Streamline organization 3 Utilize €70m
Slide 43: Drive sourcing and real estate utilization
1 Drive sourcing and real estate utilization Built integrated global procurement organization Team now sized for global management of the function: Key goal • 8 purchasing specialists at Group procurement Department • International network of purchasing correspondents Purchasing & RE Cost base (5)%*
Slide 44: Leverage Centers of Excellence to drive efficiency
2 Leverage Centers of Excellence to drive efficiency Operating model transformation to enhance productivity Opportunity to in-source Complete roll out of “close Evaluate further leveraging and offshore IT contractors to the risk model” to Centers of Excellence to Romania France and Germany • Scope:
Slide 45: Simplify and automate processes
3 Simplify and automate processes Productivity through tools enhancement 3-year journey to: Drive a Lean process management culture • Create central Lean management team • Support with dedicated local correspondents • Streamline key processes to eliminate waste, lead time and focus on value-add func
Slide 46: Streamline organisation
4 Streamline organisation Drive productivity while Geographies ensuring skill & talent vitality • Merge/simplify Baltics entities • Reallocate resources to higher value added work • Merge/simplify Adriatic entities • Continue to hire in critical areas to refresh • Simplify West Africa skills & talen
Slide 47: France: streamline commercial organization
France: streamline commercial organization Case study From To A geographies-based organization A function-based organization Marketing & commercial director Commercial Single Risk Back office Marketing Client relation Commercial Direct Sales Broker Sales Commercial UW Account Specifc lines Managemen
Slide 48: Wrap-up
Wrap-up Fit to Win aims at adjusting cost structure to market realities • A clear set of initiatives serving customer experience and sustainable operational efficiency • 4 different levers to generate €30m savings in ‘18 • Clear governance between Group and country projects teams • Continue dynamic
Slide 49: Q&A
Q &A
Slide 50: Lunch
L unch
Slide 51: Differentiated growth strategies
5 Differentiated growth strategies Thibault Surer Group Strategy & Business Development Director
Slide 52: Building our business through selective and profitable growth
Building our business through selective and profitable growth • Differentiate commercial ambition and approach by geography • Adapt product/service offering and delivery model to our 4 main client segments • Maintain strong focus on retention of existing clients and distribution partners • Promote l
Slide 53: Market growth driven by economy and risk & commercial decision
Market growth driven by both economy and risk & commercial decision ILLUSTRATIVE Market growth drivers (in %) Economic Risk action environment Net production Pricing plan adjustment + - + - - ~ 3% + GDP growth New clients Up-selling Attrition Pricing pressure Credit limit Market and international re
Slide 54: Differentiate growth strategy by geography
Differentiate growth strategy by geography Geographical vision Market features Strategy • High market penetration Drive sales • Most businesses equipped • Intense competition efficiency & innovate to differentiate Stability and pricing pressure Underpenetrated Mature • Some market potential • Low pr
Slide 55: Differentiate approach by segment
Differentiate approach by segment Segment needs Strategy • BS and P&L optimization • Invest in systems and processes Large • Speed and tailor-made solutions • Centralize program information corporates • Timely program setup • Design tailor-made solutions and consolidated reporting • Account selectio
Slide 56: Drive sales efficiency and innovate in mature markets
Drive sales efficiency and innovate to differentiate in mature markets Market share of total TCI (~€6 Bn) Growth strategy • Increase client retention through Mature enhanced credit process management Underpenetrated – Improve communication on risk 52% Emerging stable and limit decisions – Provide ac
Slide 57: Invest in distribution and new client acquisition in underpenetrated markets
Invest in distribution and new client acquisition in underpenetrated markets Market share of total TCI (~€6 Bn) Growth strategy • Drive distribution mix to improve market Mature coverage Underpenetrated 15% Emerging stable – Strengthen direct sales force focusing on SMEs and mid-market High risk – D
Slide 58: Seek scale through safe growth in emerging stable markets
Seek scale through safe growth in emerging stable markets Market share of total TCI (~€6 Bn) Growth strategy • Progressively “industrialize” commercial Mature practices – Leverage critical mass to improve distribution 6% Underpenetrated Emerging stable effectiveness (e.g., account management High ri
Slide 59: Stabilize risk and demonstrate ability to make returns before growing
Stabilize risk and demonstrate ability to make returns before growing in high risk markets Market share of total TCI (~€6 Bn) Growth strategy • Improve risk underwriting capabilities before Mature growing Underpenetrated 27% Emerging stable • Define selective “target zone” to improve profitability a
Slide 60: Invest in a dedicated, specialist financial institutions team
Invest in a dedicated, specialist financial institutions team Positive environment Growth strategy • Growing market • Capitalize on Coface experience – Evolution of product mix towards receivable – Large product range in receivable, payable, finance solutions (e.g., Factoring) financial guarantee, d
Slide 61: Innovate to differentiate
Innovate to differentiate Products & services Information Distribution Fund dynamic innovation funnel Experiment “big data” approach Leverage Digital and “Lab” to enhance business model • Fully “web-enable” products • Feed and manage project funnel • Access non conventional & services information (w
Slide 62: Latin America - Case study
5.1 Differentiated growth strategies Latin America - Case study Bart Pattyn Regional CEO
Slide 63: Current crisis in Latin America is more severe than in 2008/2009
Current crisis in Latin America is more severe than in 2008/2009 Latam currencies experienced a sharper decline vs USD 2008/2009 Crisis 2014/2016 Crisis 80% 80% 100% 100% 120% 120% 140% 140% ARS ARS BRL 160% BRL 160% CLP CLP COP COP CRC CRC 180% EUR 180% EUR MXN MXN PEN PEN 200% 200% • High level of
Slide 64: 10 action plans implemented since end of 2014 showing positive results
10 action plans have been implemented since end of 2014 showing positive results on loss ratio Actions taken Results: Re-balancing our business • Review of Debtor Risk Assessment LatAm Accounting Loss Ratio2 • Launch of specific prevention plans – Sector specific – Country specific 170.4% 146.2% Bra
Slide 65: Fit to Win in Latin America
Fit to Win in Latin America “One size fits all” not adapted to market realities €51m market, Coface #2 with €16m €18m market, Coface #3 with €5m Colombia Specific: “Nafta” Common: Specific: “fast emerging” Mexico – Low inflation – Dependence on commodities – Low inflation – Construction sector suffe
Slide 66: Each country has a specific priority
Each country has a specific priority – Small Trade Credit insurance market – Pricing of brazilian risk did not reflect the reality in the – Cost-efficient and good quality information production prolonged downturn capability for 18 countries – 137% industry loss ratio in 2015 Actions: Actions: Brazi
Slide 67: Germany - Case study
5.2 Differentiated growth strategies Germany - Case study Thibault Surer Group Strategy & Business Development Director
Slide 68: Germany: a mature market environment with strong price pressure
Germany: a mature market environment with strong price pressure Market background: – Strong economy: GDP growth (1.8%), low inflation and low level of insolvencies – Large credit insurance market : €800M premium, but decreased by approx. 2.9 % in last 3 years. – Coface: 20% market share in credit in
Slide 69: Commercial transformation program launched in 2014
Commercial transformation program launched in 2014 3 Key levers Reorganize sales force: – Stop agent structure because of poor performance – Decentralize commercial teams into 11 regions (except for large accounts) – Segment sales force and introduce a “hunter – farmer” organization – Change sales f
Slide 70: This program has already generated visible results
This program has already generated visible results Results – Increased sales force productivity by 30% in 2015 – New business production for H1-2016: +20% vs H1-2015 – Retention rate grew by 2ppts (from 92% as of H1-2015 to 94.4% as of H1-2016) Retention rate 94.4% 92.0% H1-2015 H1-2016 Investor Day
Slide 71: Italy - Case study
5.3 Differentiated growth strategies Italy - Case study Ernesto de Martinis Country Manager
Slide 72: Italy: a difficult environment with positive trends
Italy: a difficult environment with positive trends Macroeconomic indicators 15% 10% Private Comments consumption 5% Export 0% Investments -5% -10% Industrial production • Strong recession with decline in GDP -15% GDP level and industrial production -20% 2008 2009 2010 2011 2012 2013 2014 2015 • Tre
Slide 73: Strategy focused on both risk management and distribution
Strategy focused on both risk management and distribution Risk Management Distribution Ambition Ambition By becoming the most accurate information To become the preferred company for tied company on the market agents in the market How How By redefining the information gathering and By re-orienting t
Slide 74: Bank networks: new channel for Small / extra small segments
Bank networks: new channel for Small / extra small segments Turnover Penetration Segment #Targets Channel Coface strategy in Italy Range Rate Large / extra large segments Large / International • Single entry point Extra >50 M€ 1.200 +++ • Integrated communication with Brokers large sales, risk & cla
Slide 75: Focus on bank partnerships
Focus on bank partnerships Strategy implemented since April 2016 for 3 banks: new channel as intermediary • +130 contracts signed • +1,6 M€ premiums • +90% S and XS business target Investor Day – September 22nd, 2016 75
Slide 76: Positive results along several dimensions
Positive results along several dimensions Gross written premium (€m): Loss ratio: positive growth under control 165 160 89.7% 155 83.5% 150 145 38.8% 32.4% 140 135 2011 2012 2013 2014 2015 FY-2013 FY-2014 FY-2015 H1-2016 Coface Italy’s success brought by focusing on risk management and distribution,
Slide 77: Wrap-up
Wrap-up Fit to Win aims at driving profitable growth over the long term • Our growth ambition is realistic and supported by existing assets and skills • Reversing attrition is an ambitious goal, as we are facing significant headwinds: – Price pressure in developed countries – Need to be more selecti
Slide 78: Financial targets and capital
Financial targets 6 and capital Carine Pichon CFO
Slide 79: Fit to Win addresses Coface financial challenges
Fit to Win adresses Coface financial challenges Our financial challenges Fit to Win transformation drivers Position Coface as the most agile, Deteriorating economics 1 global trade credit partner in the industry 60.8% 63% to 66% 52.5% Increasing net A Strengthen Risk Management & Information loss ra
Slide 80: …with ambitious yet realistic targets
1 Position Coface as the most …with ambitious yet realistic targets agile, global trade credit partner in the industry ~8% RoATE expectations C B A 3.3% ~2.2% H1 2016 H1 2016 Restated* Risk management Operational efficiency Selected growth RoATE through the cycle * Excluding State guarantees managem
Slide 81: Effects of Fit to Win will materialize gradually
1 Position Coface as the most Effects of Fit to win will materialize gradually agile, global trade credit partner in the industry Fit to Win transformation drivers Expected timeline impact Illustration of loss development – per UWY A Strengthen Risk Management • Expect full pay-off after 2 years & I
Slide 82: Keep a resilient and secure yield of the investment portfolio
Keep a resilient and secure yield of the investment portfolio in a low interest rate environement Monitoring our risk : Key priority Average rating of Bond Portfolio A Low sensitivity to market shock Modified duration of Bond Portfolio 3.4 years 10% of Investment Portfolio SCR Market with significan
Slide 83: Coface has 2 key capital management goals
2 Steer business Coface has 2 key capital management goals towards more efficient capital model Ensure Support Solvency & Ratings progressive growth Solvency ratio* Underlying scenario [0-3]% CAGR ex. FX 160% Target H1-2016 140% 155% 120% Coface's comfort scale 1 2 3 4 5 6 7 • Fitch AA- stable outlo
Slide 84: Coface will continue to optimize capital structure
2 Steer business Coface will continue to optimize towards more efficient capital structure capital model Partial internal model Solvency II Innovative as an option reinsurance Contingent equity line Hybrid debt Leverage reinsurance as a tool of risk 100% equity and capital management funded – Broad
Slide 85: Capital management will further improve returns for shareholders
2 Steer business Capital management will further improve towards more efficient returns for shareholders capital model Optimize returns Attractive dividend policy for investors ≥ 60% pay-out share Normalized earnings ≥ +1% Special dividends or buyback to address excess capital – Capacity to further
Slide 86: Wrap up
Wrap up Fit to Win aims at reviving Coface’s financial performance with ambitious yet realistic targets • RoATE: more than 9% across the cycle, after capital optimization • Combined ratio: ~83% across the cycle – Progressive return to normalized loss ratio over the cycle, in line with industry – €30
Slide 87: Q&A
Q &A
Slide 88: Wrap-up: Fit to Win '16 to '19 will transform Coface
Wrap-up: Fit to Win ‘16 to ‘19 will transform Coface • Become the most agile global trade credit partner in the industry – Reinforce risk management – Drive operational efficiency & client service – Drive differentiated growth strategies • Optimize capital • Enhance governance & execution • Drive cu
Slide 89: Appendix
Appendix
Slide 90: Key Figures
Key Figures H1-2016 2015 2016 % % Income statement items - in €m H1-2016 vs. Q1 H1 9M FY Q1 H1 9M FY like-for-like 1 H1-2015 Consolidated revenues 389.6 760.3 1,126.3 1,489.5 365.0 716.7 (5.7)% (3.4)% of which gross earned premiums 306.9 603.0 894.1 1,185.9 288.5 565.7 (6.2)% (3.4)% Underwriting inc
Slide 91: Important legal information
Important legal information IMPORTANT NOTICE: This presentation has been prepared exclusively for the purpose of the disclosure of Coface Group’s new strategic plan “Fit to Win 2016-2019”, released on September 22nd, 2016. This presentation includes only summary information and does not purport to b