Slide 1: 9M-2024 Results: Presentation to Financial Analysts
9 M - 2 0 2 4 R E S U LT S P R E S E N TAT I O N T O F I N AN C I AL AN ALY S T S 5 NOVEMBER 2024
Slide 2: 9M-2024 Results: Net Income at €207.7M – RoATE at 14.8%
9M-2024 RESULTS: NET INCOME AT €207.7M – ROATE AT 14.8% 01 02 03 04 9M -2024 9M -2024 KE Y TAKE - APPE NDI CE S HIGHL IGHTS R E S U LTS AW AY S & OUTL OOK Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust. You can check the authent
Slide 3: Part 1: 9M-2024 Highlights
coface FOR TRADE PART 1 9M-2024 HIGHL
Slide 4: Coface Reports €207.7M Net Profit in 9M-2024 of Which €65.4M in Q3-2024
COFACE REPORTS €207.7M NET PROFIT IN 9M-2024 OF WHICH €65.4M IN Q3-2024 Turnover reached €1,376.6m in 9M-24, down -2.1% at constant FX and perimeter › Insurance revenue decreasing by -4.0% at constant FX with continued subdued client activity contribution › Q3-24 revenue stabilising at -0.1% with re
Slide 5: Developing a Unique Set of Services to Address Client Needs in Hardening Cycle
DEVELOPING A UNIQUE SET OF SERVICES TO ADDRESS CLIENT NEEDS IN HARDENING CYCLE CONTINUING TO BUILD PRODUCT RANGE OF SERVICES KEY ACHIEVEMENTS AND PERFORMANCE INDICATORS › Coface keeps expanding services salesforce. › Business Information use cases: Supply chain risk and customer risk (portfolio moni
Slide 6: Part 2: 9M-2024 Results
coface FOR TRADE PART 2 9M-2024 RESULT:
Slide 7: Total Revenue Down -2.1% with Services Up +6.0%
TOTAL REVENUE DOWN -2.1% WITH SERVICES UP +6.0% (2.9)% (2.1)% Total revenue down -2.1% vs. 9M-23 at constant FX and perimeter In €m 1,418 1,377 › Trade credit insurance* revenues decrease -4.0% at constant FX. Insurance Revenue Clients’ activity not rebounding in still weak economy and lower (IR) 1,
Slide 8: Lower Inflation and Slowing Economies Drive Turnover Evolution
LOWER INFLATION AND SLOWING ECONOMIES DRIVE TURNOVER EVOLUTION Western Europe Northern Europe Central Europe Mediterranean & Africa (0.5)% (3.1)% (6.7)% (6.7)% (1.6)% (3.5)% 1.2% 4.9% 399 403 290 288 291 272 132 130 9M-23 9M-24 9M-23 9M-24 9M-23 9M-24 9M-23 9M-24 Services growing (+24.8%) Selective
Slide 9: Rebounding New Sales and No Contribution from Client Activity
REBOUNDING NEW SALES AND NO CONTRIBUTION FROM CLIENT ACTIVITY production* New production rebounding at €96m driven by New 102 96 82 89 increased demand and growth investments 9M-21 9M-22 9M-23 9M-24 93.5% 93.9% 92.7% Retention 92.1% Retention rate at high level in a still competitive rate* market. S
Slide 10: Gross Loss Ratio at 32.9%, with High Reserves Bookings and Releases
GROSS LOSS RATIO AT 32.9%, WITH HIGH RESERVES BOOKINGS AND RELEASES Loss ratio before reinsurance and including claims handling expenses, in % 40.7 › Normalisation continues : 38.8 38.1 37.5 33.2 31.7 33.7 32.9 26.2 ‒ Number of claims keeps increasing ‒ Number of bankruptcies clearly exceed 2019 in
Slide 11: Loss Ratios Remain Under Control in All Regions
LOSS RATIOS REMAIN UNDER CONTROL IN ALL REGIONS Loss ratio before reinsurance, including claims handling expenses – in % 10%* 4%* 7%* Group North America Latin America Asia Pacific 82.6 35.5 35.8 32.9 50.5 21.4 27.5 26.5 27.6 14.4 19.0 19.9 6.9 8.8 8.2 21.3 FY-21 FY-22 FY-23 9M-24 FY-21 FY-22 FY-23
Slide 12: Risks Well Under Control Across Regions
RISKS WELL UNDER CONTROL ACROSS REGIONS Loss ratio before reinsurance (by quarter), including claims handling expenses – in % 10%* 4%* 7%* Group North America Latin America Asia Pacific 180.7 82.6 71.5 49.7 40.7 38.1 37.5 33.2 33.7 31.8 27.7 28.3 22.3 33.3 21.5 24.9 48.1 29.2 25.5 39.0 29.7 26.2 31.
Slide 13: Lower Revenues and Continued Investment Drives Cost Ratio Up
LOWER REVENUES AND CONTINUED INVESTMENT DRIVES COST RATIO UP 2.5% 3.3% 216 223 221 225 221 In €m 209 211 50 45 50 48 47 Cost ratio before reinsurance, in % 50 52 External costs (commissions) 32.4 34.8 31.7 33.5 33.7 178 177 29.4 29.8 159 159 166 171 174 Internal costs Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q
Slide 14: Reinsurance Reflects Persisting Low Loss Ratio
REINSURANCE REFLECTS PERSISTING LOW LOSS RATIO 9M-23 9M-24 Insurance revenue 1,187.8 1,130.2 › Premium cession rate at 27.8% in line with stable quota share Net earned premiums 864.2 816.3 27.2% 27.8% › Claims cession rate at 22.1% in line with previous year Premium cession rate › Commissions receiv
Slide 15: Net Combined Ratio Improved at 64.4%
NET COMBINED RATIO IMPROVED AT 64.4% In % (1.6) ppt Net combined ratio › Net combined ratio improved at 64.4% (vs. 66.0% in 9M-23) 66.0 64.4 Net cost ratio reflecting lower loss ratio and higher cost ratio 25.7 28.9 › Cost ratio up 3.2 ppt vs. 9M-23 with lower revenues and continued 40.2 Net loss ra
Slide 16: Financial Portfolio: Increased Underlying Income with Higher Rates
FINANCIAL PORTFOLIO: INCREASED UNDERLYING INCOME WITH HIGHER RATES €m 9M-23 9M-24 Investment Income from investment portfolio without gains on sales** 49.8 70.9 Real Estate Equities 5% FVPL and gains on sales and impairement, net of hedging*** (9.5) 8.4 3% FX effect (17.8) (10.0) Other (8.0) (9.5) L
Slide 17: 9M-24 Net Income at €207.7M of Which €65.4M in Q3-24
9M-24 NET INCOME AT €207.7M OF WHICH €65.4M IN Q3-24 Income statement items - in €m 9M-23 9M-24 › Net earned premiums down -5.5% at €816.3m Current operating income 274.4 318.2 Other operating income and expenses (0.9) (3.1) Operating income 273.4 315.1 › Operating income up 15.2% Finance costs (24.
Slide 18: RoATE Stands at 14.8%, Up by 1.4 ppt
ROATE STANDS AT 14.8%, UP BY 1.4 PPT Change in equity In €m 49.2 (7.3) 2 106.0 2 050.8 (194.3) 207.7 IFRS Equity attributable to Distribution to Net income impact Revaluation reserve Treasury shares, currency IFRS Equity attributable to owners of the parent shareholders (financial instruments) trans
Slide 19: Part 3: Key Take-aways & Outlook
PART 3 KEY TAKE-AWAYS & OUTLOOK
Slide 20: Key Take-aways & Outlook
KEY TAKE-AWAYS & OUTLOOK Coface delivers another set of strong results as credit cycle continues to harden › Net combined ratio at 64.4%, well below through the cycle targets, with continued investments › Q3-24 revenues almost stable as the biggest part of disinflation headwind is behind us and serv
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 statement items in €m - Quarterly figures Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 % % ex. FX* Insurance revenue 395.3 407.8 384.7 371.3 378.6 375.6 375.9 (2.3)% (1.3)% Services revenue 79.8 76.8 73.4 79.2 85.0 83.4 78.0 +6.2% +6.0% REVENUE 4
Slide 23: Key Figures (2/2)
KEY FIGURES (2/2) REVENUE BY REGION: QUARTERLY AND CUMULATED FIGURES Total revenue by quarter - in €m Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 % ex. FX* Northern Europe 102.2 97.9 91.2 88.2 97.8 87.2 86.8 (4.9)% Western Europe 96.6 97.7 95.4 90.3 91.7 95.9 100.8 (1.8)% Central Europe 45.0 46.1 41.0
Slide 24: Combined Ratio Calculation
COMBINED RATIO CALCULATION In €k 9M-23 9M-24 › Combined ratio before reinsurance Earned Premiums Insurance revenue [A] 1,187,811 1,130,174 (B) (C) loss ratio before reinsurance (A)+ cost ratio before reinsurance (A) Ceded premiums (323,626) (313,843) Net earned premiums [D] 864,185 816,331 › Combine
Slide 25: 9M-2024 Results vs. Consensus
9M-2024 RESULTS VS. CONSENSUS # of in M€ Consensus Q3-24 Spread Comment replies Total revenue 6 449 454 +5 Well flagged top line momentum Insurance Revenue 6 369 376 +7 Q3-24 total revenue almost flat vs Q3-23 on services Net Earned Premiums 6 269 271 +2 NEP/IR 6 72.9% 72.2% (0.7) ppt Stable cession
Slide 26: Financial Calendar & Investor Relations Contacts
FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own s h a re s tra n s a c tio n s Next Event Date Own shares transactions FY-24 Results 20 February 2025 (after market close) Liquidity Buy-back Date LTIP TOTAL % Total of Voting Agreement (cancellation) Q1-25 Results 05 May 2025 (after mark
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