Slide 1: Q1-2021 Results
Q1-2021 RESULTS PRESENTATION TO FINANCIAL ANALYSTS 27 APRIL 2021
Slide 2: Q1-2021 Results: Net income at €56.4M; RoATE stands at 12.0%
Q1-2021 RESULTS: NET INCOME AT €56.4M; ROATE STANDS AT 12.0% 1 2 3 4 Q1-2021 Q1-2021 KEY TAKE-AWAYS APPENDICES HIGHLIGHTS RESULTS & OUTLOOK 2 Q1-2021 RESULTS | PRESENTATION TO FINANCIAL ANALYSTS | 27 APRIL 2021
Slide 3: Part 1: Q1-2021 Highlights
coface PART 1 Q1-2021 HIGHLIGHTS A
Slide 4: Coface reports €56.4M net income for Q1-2021
COFACE REPORTS €56.4M NET INCOME FOR Q1-2021 Turnover reached €378m y-t-d, up 4.2% at constant FX and perimeter • Trade credit insurance premiums growing by 6.1% at constant FX benefiting from stabilizing client activity • Client retention remains close to record highs; pricing impact is positive (+
Slide 5: Global economy on the recovery path as vaccines progress
GLOBAL ECONOMY ON THE RECOVERY PATH AS VACCINES PROGRESS COFACE’S WORLD GDP GROWTH FORECAST TOTAL TCI EXPOSURE – UP IN Q1-21 (annual average, %) (in € bn) 5.1 4.3 550 3.2 3.0 3.0 3.3 3.2 2.5 2.7 2.5 500 2.3 +2.7% 450 400 -1.7 350 -3.6 300 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 FY-17 FY-
Slide 6: Part 2: Q1-2021 Results
coface PART 2 Q1-2021 RESULTS A
Slide 7: Turnover growth at 4.2% driven by TCI premiums growing +6.1%
TURNOVER GROWTH AT 4.2% DRIVEN BY TCI PREMIUMS GROWING +6.1% 2.0% 4.2% 370 378 Total revenue up 4.2% vs Q1-2020 at constant FX In €m • Trade credit insurance1 premiums growing at 6.1% at constant FX Gross Earned Premiums due to price effect and stabilized activity (GEP) 301 312 • Other revenue2 down
Slide 8: Higher price and stabilizing client activity drive revenue rebound
HIGHER PRICE AND STABILIZING CLIENT ACTIVITY DRIVE REVENUE REBOUND Western Europe Northern Europe Central Europe Mediterranean & Africa 5.1% 5.5% 0.9% (2.2)% (2.7)% 1.0% 4.3% 6.1% 102 107 75 81 82 72 38 37 Q1-20 Q1-21 Q1-20 Q1-21 Q1-20 Q1-21 Q1-20 Q1-21 Positive price effect and activity New busines
Slide 9: Better pricing, retention at high level and lower new business
BETTER PRICING, RETENTION AT HIGH LEVEL AND LOWER NEW BUSINESS production* 51 35 40 New production at €40m after a record high level in 34 New Q1-20 Q1-18 Q1-19 Q1-20 Q1-21 93.1% 94.0% 94.3% 93.8% Retention rate* Retention close to record high level Q1-18 Q1-19 Q1-20 Q1-21 2.9% effect* Price -0.4% S
Slide 10: Gross loss ratio decreased to record low level at 29.5%
GROSS LOSS RATIO DECREASED TO RECORD LOW LEVEL AT 29.5% Loss ratio before reinsurance and including claims handling expenses, in % 62.8 ► Gross loss ratio has decreased by 25.7 points driven by 55.2 54.8 34.9 No large loss 29.5 Low claims experience across regions since Q3-2020 Q1-20 Q2-20 Q3-20
Slide 11: Low loss ratio across all regions
LOW LOSS RATIO ACROSS ALL REGIONS Loss ratio before reinsurance, including claims handling expenses – in % 9%* 7%* 4%* Group North America Asia Pacific Latin America 72.3**** 63.7 60.1*** 51.8 48.6 57.9** 44.2** 43.4*** 45.8 39.1 35.6 35.9 29.5 23.6 22.2 1.3 FY-18 FY-19 FY-20 Q1-21 FY-18 FY-19 FY-20
Slide 12: Loss ratio for the quarter at 29.5%
LOSS RATIO FOR THE QUARTER AT 29.5% Loss ratio before reinsurance (by quarter), including claims handling expenses – in % 9%* 7%* 4%* Group North America Asia Pacific Latin America 112.5 93.4 70.5 70.3 76.6 62.8 59.3 58.0 55.2 54.8 48.3 46.1 41.4 34.9 31.8 35.6 27.3 29.5 22.2 1.3 Q1-20 Q2-20 Q3-20 Q
Slide 13: Stable costs, growing revenues drive cost ratio improvement
STABLE COSTS, GROWING REVENUES DRIVE COST RATIO IMPROVEMENT (1.4)% 0.7% In €m 184 176 174 166 165 External acquisition 38 40 39 40 36 Cost ratio before reinsurance, in % costs (commissions) 34.1 36.0 32.3 32.5 31.2 Internal costs 138 144 126 128 135 V% V% ex. FX Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q
Slide 14: Reinsurance reflects low loss activity and public schemes
REINSURANCE REFLECTS LOW LOSS ACTIVITY AND PUBLIC SCHEMES Q1-20 Q1-21 ► Government schemes are now fully in force in all countries. They Gross earned premiums 301.2 312.1 have an estimated negative net impact of €15m in Q1-21 at the Net earned premiums 219.3 160.1 underwriting income level. 27.2% 48
Slide 15: Net combined ratio at 52.8% on record low loss ratio
NET COMBINED RATIO AT 52.8% ON RECORD LOW LOSS RATIO (34.0) ppts In % Net combined ratio 91.4 86.8 ► Net cost ratio improved to 28.3% (vs 29.7% in Q1-20) 77.4 Net cost ratio 29.7 33.5 27.5 58.3 52.8 ► Loss ratio at 24.5%, reflecting record low losses and significant 40.0 28.3 recoveries Net loss rat
Slide 16: Government scheme's impact on ratio
GOVERNMENT SCHEME’S IMPACT ON RATIO GOVERNMENT SCHEMES’ IMPACT ON RATIO (%) FULL YEAR BY QUARTER (4.8) ppts 0 ppt (6.6) ppts (6.8) ppts (11.1) ppts (8.3) ppts In % In % 98.0 84.5 Net combined 91.4 Net combined 79.8 ratio 86.8 86.8 84.2 ratio 77.7 31.7 77.4 Net cost 29.7 29.7 33.5 69.4 Net cost 31.6
Slide 17: Financial portfolio: declining yield and low realized gains
FINANCIAL PORTFOLIO: DECLINING YIELD AND LOW REALIZED GAINS €m Q1-20 Q1-21 Investment Real Estate Income from investment portfolio without gains on sales** 9.4 7.9 8% Gains on sales and impairement, net of hedging*** (2.1) 0.1 Equities FX effect (2.4) (0.6) 7% Other (2.3) (1.7) Loans, Deposit & 5.7
Slide 18: Q1-2021 net income at €56.4M
Q1-2021 NET INCOME AT €56.4M Income statement items - in €m Q1-20 Q1-21 ► Current operating income at €80m up mostly on lower loss ratio and higher Current operating income 30.9 80.0 financial income Other operating income and expenses (0.2) (0.4) Operating income 30.7 79.6 Finance costs (5.2) (4.9)
Slide 19: RoATE stands at 12.0%, up 7.2 ppts
ROATE STANDS AT 12.0%, UP 7.2 PPTS Change in equity 1,998.3 (0.0) 56.4 (6.2) 0.8 2,049.3 In €m IFRS Equity attributable Distribution to Net income impact Revaluatuion reserve Treasury shares, IFRS Equity attributable to owners of the parent shareholders (financial instruments currency translation to
Slide 20: Part 3: Key take-aways & outlook
PART 3 KEY TAKE-AWAYS & OUTLOOK
Slide 21: Key take-aways & outlook
KEY TAKE-AWAYS & OUTLOOK Q1-2021 net profit at record level in extraordinary circumstances • Good operating performance achieved by Coface since the beginning of the Covid crisis • Still low level of bankruptcies across all regions Coface is preparing itself for the next phase of an highly different
Slide 22: Part 4: Appendices
coface PART 4 APPENDICES A
Slide 23: Key figures (1/3)
KEY FIGURES (1/3) Quarterly and cumulated figures Income statements items in €m - quarterly figures Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 % % ex. FX* Gross earned premiums 301.2 297.9 298.1 307.2 312.1 +3.6% +6.1% Services revenue 69.3 56.3 59.7 61.3 65.9 (4.9)% (3.9)% REVENUE 370.5 354.2 357.8 368.4 377.9
Slide 24: Key figures (2/3)
KEY FIGURES (2/3) Revenue by region: quarterly and cumulated figures Total revenue - by quarter - in €m Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 V% ex. FX* Northern Europe 81.5 65.5 74.1 76.5 82.2 (2.2)% Western Europe 71.8 70.7 77.3 72.1 75.5 +5.5% Central Europe 37.6 35.9 33.5 36.1 36.6 +1.0% Mediterranean &
Slide 25: Key figures (3/3)
KEY FIGURES (3/3) Financial portfolio: quarterly figures Financial portfolio Q1-19 H1-19 9M-19 FY-19 Q1-20 H1-20 9M-20 FY-20 Q1-21 Bonds 66% 67% 72% 74% 64% 64% 65% 68% 71% Loans, Deposit & other financial 20% 19% 13% 11% 23% 23% 23% 19% 15% Equities 6% 6% 6% 6% 4% 5% 5% 5% 7% Investment Real Estate
Slide 26: Government schemes finalised: main features
GOVERNMENT SCHEMES FINALISED: MAIN FEATURES % of Ceded Ceded Country Type Eligible Policyholders Renewal Commissions Renewed until exposure* premium claims Top-up Domestic Signed 31/12/2021 France 22.0% Quota share Domestic Signed 20% 20% 35% 30/06/2021 Germany 16.7% Guarantee Domestic & co-Insured
Slide 27: Combined ratio calculation
COMBINED RATIO CALCULATION In €k Q1-2020 Q1-2021 ► Combined ratio before reinsurance Earned Premiums (B) (C) Gross earned premiums [A] 301,176 312,050 loss ratio before reinsurance + cost ratio before reinsurance (A) (A) Ceded premiums (81,886) (151,978) Net earned premiums [D] 219,290 160,072 ► Com
Slide 28: Q1-21 results vs consensus
Q1-21 RESULTS VS CONSENSUS in M€ # of # of Consensus Q1-2021 Spread Comment in M€ Consensus Q1-2021 Spread Comment repliesreplies Total revenue Total revenue 5 5 374374 378 378 +4.3 +4.3 Revenue growth Revenue drivendriven growth by premiums on priceon price by premiums Gross Gross Earned Earned Pre
Slide 29: Financial calendar & investor relations contacts
FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own shares transactions Own shares transactions Next Event Date Liquidity Buy-back Date LTIP TOTAL % Total of Voting Agreement (cancellation) Annual shareholders meeting 12 May 2021 (in shares) # Shares rights 31/03/2021 139,262 1,063,069 1,8
Slide 30: Important legal information
IMPORTANT LEGAL INFORMATION IMPORTANT NOTICE: This presentation has been prepared exclusively for the purpose of the disclosure of Coface Group’s results for the period ending 31 March 2021. This presentation includes only summary information and does not purport to be comprehensive. The Coface Grou