Slide 1: FY-2021 Results: Presentation to Financial Analysts
F Y- 2 0 2 1 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 15 FEBRUARY 2022
Slide 2: FY-2021 Results: Net Income at €223.8M – 100% Proposed Pay-out
FY-2021 RESULTS: NET INCOME AT €223.8M – 100% PROPOSED PAY-OUT 01 02 03 04 05 FY- 2 0 2 1 FY- 2 0 2 1 C A P I TA L K E Y TA K E - APPENDICES HIGHLIGHTS R E S U LT S MANAGEMENT A W AY S & OUTLOOK 2 FY-2021 RESULTS | PRESENTATION TO FINANCIAL ANALYSTS | 15 FEBRUARY 2022
Slide 3: Part 1: FY-2021 Highlights
coface FOR TRADE PART 1 FY-2021 HIGHL
Slide 4: Coface Reports €223.8M Net Income of Which €32.9M in Q4-2021
COFACE REPORTS €223.8M NET INCOME OF WHICH €32.9M IN Q4-2021 Turnover reached €1,568m y-t-d, up by +8.3% at constant FX and perimeter › Trade Credit Insurance growing +9.7% driven by activity recovery and past repricing › Pricing impact is still positive on the year (+0.7%) but evolution has been ne
Slide 5: Solvency Ratio at 196%; 100% Proposed Pay-out
SOLVENCY RATIO AT 196%1 ; 100% PROPOSED PAY-OUT2 RoATE3 stands at 12.2% for the year Estimated solvency ratio at c. 196%1 (194%1 excluding government schemes) › Limited remaining impact from government schemes › Solvency above target range set at 155-175% › Stable retention with reinsurance cession
Slide 6: Build to Lead – Objectives Remain Unchanged
BUILD TO LEAD – OBJECTIVES REMAIN UNCHANGED BUILD TRADE CREDIT INSURANCE LEADERSHIP GROW SELECT SPECIALTIES SIMPLIFY AND DIGITIZE INFORMATION AND RISK SINGLE RISK INFORMATION PROFITABLE GROWTH FACTORING OPERATING MODEL CAPABILITIES AND BONDING AND SERVICES • Migrate to X-Liner • Continuing to develo
Slide 7: Investing in Information, Leveraging Current Infrastructure and Synergies with TCI
INVESTING IN INFORMATION, LEVERAGING CURRENT INFRASTRUCTURE AND SYNERGIES WITH TCI CONSOLIDATED TURNOVER(€M) +27% COFACE ASSETS MARKET TRENDS 35 42 +48% • Data assets and payment behaviour • Need for more “informed” decisions 29 31 • Underwriting expertise • High quality data and risk insights • Glo
Slide 8: Build to Lead – On Track with Targets
BUILD TO LEAD – ON TRACK WITH TARGETS COMBINED RATIO PAY-OUT RATIO <80% >80% Dividend 77.7% 79.8% 100% 100% SBB 64.6% 15% 2019 2020 2021 2019* 2020 2021 *In view of the scale of the health crisis and following the vote at the Combined General Shareholders’ Meeting BUILD TO LEAD of May 14, 2020, it w
Slide 9: CSR: Embedding Strategy and Setting Targets
CSR: EMBEDDING STRATEGY AND SETTING TARGETS RESPONSIBLE RESPONSIBLE RESPONSIBLE DRIVING THE INSURER EMPLOYER ENTERPRISE C U LT U R E › Improved ESG rating of › Diversity & Inclusion: › Launched full carbon footprint › Appointed Senior group CSR ACTIONS TAKEN investment portfolio from C- to C 84/10
Slide 10: Part 2: FY-2021 Results
coface FOR TRADE PART 2 FY-2021 RESULT,
Slide 11: Turnover Growth at 8.3% Driven by TCI Premiums Up 9.7%
TURNOVER GROWTH AT 8.3% DRIVEN BY TCI PREMIUMS UP 9.7% 8.1% 8.3% Total revenue up +8.3% vs FY-2020 at constant In €m 1,451 1,568 FX and perimeter › Trade Credit Insurance* increasing by +9.7% at constant FX and Gross Earned Premiums perimeter driven by positive client activity, high retention and pa
Slide 12: Continued Economic Rebound Driving Revenue Growth
CONTINUED ECONOMIC REBOUND DRIVING REVENUE GROWTH Western Europe Northern Europe Central Europe Mediterranean & Africa 8.5% 8.2% 11.4% 9.4% 9.2% 8.1% 8.7% 9.4% 429 395 317 332 292 298 143 156 FY-20 FY-21 FY-20 FY-21 FY-20 FY-21 FY-20 FY-21 Pricing, good retention and activity New business, activity
Slide 13: Very Strong Activity and Confirmed Competitive Market
VERY STRONG ACTIVITY AND CONFIRMED COMPETITIVE MARKET production* 133 138 129 116 New production at €129m, after a record high New level in FY-20. FY-18 FY-19 FY-20 FY-21 Retention 91.1% 91.6% 91.9% 91.7% rate* Retention rate close to record level in a more competitive market. FY-18 FY-19 FY-20 FY-2
Slide 14: Gross Loss Ratio at 21.4% Record Low
GROSS LOSS RATIO AT 21.4% RECORD LOW Loss ratio before reinsurance and including claims handling expenses, in % › FY-21 gross loss ratio improved by 30.4 points driven by: 62.8 55.2 54.8 ‒ Continued limited large loss activity 51.8 ‒ Low claims frequency across regions since Q3-2020 34.9 29.5 29.6 ‒
Slide 15: Record Low Loss Ratio Across All Regions
RECORD LOW LOSS RATIO ACROSS ALL REGIONS Loss ratio before reinsurance, including claims handling expenses – in % 9%* 5%* 8%* Group North America Latin America Asia Pacific 72.3**** 63.7 60.1*** 51.8 57.9** 48.6 44.2** 43.4*** 45.8 39.1 35.9 21.4 14.4 23.6 6.9 8.8 FY-18 FY-19 FY-20 FY-21 FY-18 FY-19
Slide 16: Loss Ratio for the Quarter Further Down at 10.7%
LOSS RATIO FOR THE QUARTER FURTHER DOWN AT 10.7% Loss ratio before reinsurance (by quarter), including claims handling expenses – in % 9%* 5%* 8%* Group North America Latin America Asia Pacific 34.9 35.6 41.4 29.5 29.6 31.8 27.3 22.3 22.2 21.0 24.8 16.9 10.5 2.6 1.3 1.3 8.5 1.6 -0.3 -15.7 Q4-20 Q1-2
Slide 17: Positive Operating Leverage While Continuing to Invest
POSITIVE OPERATING LEVERAGE WHILE CONTINUING TO INVEST 7.0% 7.1% 6.7% 4.7% 196 740 184 184 185 In €m 176 174 691 166 165 44 167 38 40 42 42 Cost ratio before reinsurance, in % External acquisition costs 155 36 39 40 (commissions) 36.0 33.7 34.1 33.2 31.2 573 138 144 142 143 153 536 126 128 135 Inter
Slide 18: Reinsurance Results Reflects Low Loss Activity and Public Schemes
REINSURANCE RESULTS REFLECTS LOW LOSS ACTIVITY AND PUBLIC SCHEMES 12M-20 12M-21 › Premium cession rate is down to 39.0% as public schemes have ended on Gross earned premiums 1,204.3 1,312.6 June 30th 2021. Net earned premiums 645.1 800.5 › Claims cession rate is down to 5.0% as reserve releases are
Slide 19: Gov. Schemes' Impact: Already Recognized a Large Majority of Costs
GOV. SCHEMES’ IMPACT: ALREADY RECOGNIZED A LARGE MAJORITY OF COSTS … ON COMBINED RATIO (%) 100% 90% 80% 70% 60% 50% 40% 30% • Government schemes have lowered pretax profit by €166m Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Published w/o schemes since the beginning of the crisis (€6m in 2020, €
Slide 20: Net Combined Ratio at 64.6% on Record Low Loss Ratio
NET COMBINED RATIO AT 64.6% ON RECORD LOW LOSS RATIO (15.2) ppts › Net combined ratio improved to 64.6% (vs 79.8% in 2020) due to improved In % claims ratio Net combined ratio 79.8 › Net cost ratio improved by -0.8 ppt showing good cost discipline and 64.6 Net cost ratio 32.1 investments 31.3 › 2021
Slide 21: Financial Portfolio: Stabilising Underlying Investment Income
FINANCIAL PORTFOLIO: STABILISING UNDERLYING INVESTMENT INCOME Investment €m FY-20 FY-21 Real Estate 7% Income from investment portfolio without gains on sales** 32.9 33.1 Equities Gains on sales and impairement, net of hedging*** (1.7) 3.6 8% FX effect (3.5) 7.0 Other (0.8) (1.6) Loans, Deposit & To
Slide 22: FY-2021 Net Income at €223.8M of Which €32.9M in Q4-2021
FY-2021 NET INCOME AT €223.8M OF WHICH €32.9M IN Q4-2021 Income statement items - in €m 12M-20 12M-21 Current operating income 154.2 316.0 › Current operating income more than doubled at €316.0m Other operating income and expenses (13.8) (3.2) Operating income 140.4 312.9 Finance costs (21.8) (21.5)
Slide 23: RoATE Stands at 12.2%, Up 7.4 ppts
ROATE STANDS AT 12.2%, UP 7.4 PPTS 223.8 9.7 (7.9) 2,141.0 Change in equity 1,998.3 (83.0) In €m IFRS Equi ty Distribu tio n to Net income impact Revaluatuion reserve Treasury shar es, IFRS Equi ty attri butable to owner s shareh olders (financial instr uments currency translation attri butable to o
Slide 24: Part 3: Capital Management
coface FOR TRADE PART 3 CAPITAL MANAG
Slide 25: Solid Balance Sheet
SOLID BALANCE SHEET 2021 simplified balance sheet In €m IFRS 17 “Insurance contracts” › Project progressing as planned 8,039 8,039 Goodw ill 230 & intangible assets Shareholders’ 2,141 equity Financial strength 3,219 Insurance investments 391 Financing liabilities › Fitch: AA-, stable outlook (inclu
Slide 26: Robust Solvency Over Time
ROBUST SOLVENCY OVER TIME FY-2021 estimated Solvency ratio above target range Low sensitivity to market shocks market sensitivity tested through instantaneous shocks 39.0 ppts (17.7 ppts) 205%* 205% (24.6 ppts ) 31/12/2021 SCR cover (PIM) 196% 196%* 196% 191%* 191%* 191% 194% 191% (5.7 ppts ) 194% +
Slide 27: Solvency Required Capital as at 31 December 2021
SOLVENCY REQUIRED CAPITAL AS AT 31 DECEMBER 2021 196%1 2,472 PARTIAL INTERNAL MODEL 34 407 €m 1,379 (157) 40 1,264 120 (168) 209 Operational risk 1,055 209 2,032 Counterparty risk 388 Market risk Non-life underwriting risk 1,055 1,055 Tier 3 831 Tier 2 Tier 1 SCR components Diversification Tax adjus
Slide 28: Part 4: Key Take-aways & Outlook
PART 4 KEY TAKE-AWAYS & OUTLOOK
Slide 29: Key Take-aways & Outlook
KEY TAKE-AWAYS & OUTLOOK FY-2021 ended on record high profit, on the back of › Continued strong operating performance › Progressively normalizing operating environment since low point reached in July 2021 › High accounting impact of government schemes, reflecting record low loss environment Coface h
Slide 30: Part 5: Appendices
coface FOR TRADE PART 5 APPENDICES,»
Slide 31: Key Figures (1/2)
KEY FIGURES (1/2) QUARTERLY AND CUMULATED FIGURES % Income statement items in €m / Quarterly figures Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 % ex. FX* Gross earned premiums 301.2 297.9 298.1 307.2 312.1 326.7 330.7 343.2 +11.7% +10.8% Services revenue 69.3 56.3 59.7 61.3 65.9 63.4 59.6 66.3
Slide 32: Key Figures (2/2)
KEY FIGURES (2/2) REVENUE BY REGION: QUARTERLY AND CUMULATED FIGURES Total revenue Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 V% ex. FX* by quarter - in €m Northern Europe 81.5 65.5 74.1 76.6 82.2 84.7 83.5 81.1 +5.6% Western Europe 71.8 70.7 77.3 72.0 75.5 78.2 79.9 83.0 +14.8% Central Europe
Slide 33: Exposure in Emerging Markets Maintained at a Stable Share
EXPOSURE IN EMERGING MARKETS MAINTAINED AT A STABLE SHARE Evolution of TCI exposure1 per FY-2021 total TCI exposure1 – Top 10 Advanced vs Emerging markets (in €bn) countries vs. others (in %) Germany France Dec-18 79% 21% 510 12.9% USA Italy Dec-19 79% 21% 537 36.3% 10.1% Spain Dec-20 81% 19% 486 Un
Slide 34: Government Scheme's Impact on Ratio
GOVERNMENT SCHEME’S IMPACT ON RATIO GOVERNMENT SCHEMES’ IMPACT ON RATIO (%) FULL YEAR BY QUARTER +10.1 ppts (11.1) ppts (8.3) ppts (10.8) ppts. +9.0 ppts +40.3 ppts 83.0 69.4 In % 64.6 62.4 61.1 61.8 32.6 58.3 Net combined ratio 54.5 52.8 53.4 51.0 36.3 31.3 28.7 31.1 42.7 32.1 Net cost ratio 31.3 4
Slide 35: Combined Ratio Calculation
COMBINED RATIO CALCULATION In €k FY-2020 FY-2021 › Combined ratio before reinsurance Earned Premiums (B) (C) Gross earned premiums [A] 1,204,334 1,312,637 loss ratio before reinsurance + cost ratio before reinsurance (A) (A) Ceded premiums (559,203) (512,098) Net earned premiums [D] 645,131 800,539
Slide 36: Q4-21 Results vs Consensus
Q4-21 RESULTS VS CONSENSUS # of in M€ Consensus Q4-2021 Spread Comment replies Total revenue 5 396 409 +13 Continuing rebound in client activity Gross Earned Premiums 5 331 343 +12 Net Earned Premiums 5 226 252 +26 Government schemes unwind NEP/GEP 5 68.2% 73.5% +5.3 ppts Government schemes unwind N
Slide 37: Management Team
MANAGEMENT TEAM GROUP CENTRAL FUNCTIONS REGIONAL FUNCTIONS Xavier DURAND Bhupesh GUPTA Jaroslaw JAWORSKY Chief Executive Officer CEO Asia Pacific CEO Central & Eastern Europe › 30+ years of international experience in regulated financial services › 25 years of international › 25 years of experience
Slide 38: Corporate Governance
CORPORATE GOVERNANCE Board of directors AUDIT & ACOUNTS COMMITTEE Chairman Bernardo SANCHEZ INCERA Age: 61 › Board member › 3 members among which 2 independents › Independent chairman Independent Eric HÉMAR Isabelle LAFORGUE Age: 58 Age: 41 directors › Chairman & CEO › Dir. Digital, Transformation I
Slide 39: Financial Calendar & Investor Relations Contacts
FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own shares transactions Next Event Date Own shares transactions Q1-2022 Results 28 April 2022 after market close Liquidity Buy-back Date LTIP TOTAL % Total of Voting Agreement (cancellation) 2021 Annual shareholders meeting 17 May 2022 (in sh
Slide 40: 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