Coface Sa · EURONEXT:COFA

Coface Sa — FY2024 Earnings Presentation

36 slides from Coface Sa's earnings presentation, Feb 20, 2025

  1. Slide 1: FY-2024 Results Presentation to Financial Analysts

    F Y- 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 A N C I A L A N A LY S T S 20 FEBRUARY 2025

  2. Slide 2: FY-2024 Results: Net Income at €261.1M – €1.40 Proposed Dividend

    FY-2024 RESULTS: NET INCOME AT €261.1M – €1.40 PROPOSED DIVIDEND 01 02 03 04 05 FY- 2 0 2 4 FY- 2 0 2 4 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 Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technol

  3. Slide 3: Part 1: FY-2024 Highlights

    coface FOR TRADE PART 1 FY-2024 HIGHL

  4. Slide 4: Coface Reports €261.1M Net Profit in 2024, of Which €53.4M in Q4-2024

    COFACE REPORTS €261.1M NET PROFIT IN 2024 OF WHICH €53.4M IN Q4-2024 Total revenue reached €1,845m y-t-d, down -0.6% at constant FX and perimeter › Insurance revenue decreasing by -2.2% at constant FX. Client activity slightly positive in Q4-24. Positive net production for the year › Client retentio

  5. Slide 5: Solvency Ratio at 196%; €1.40 Proposed Dividend per Share

    SOLVENCY RATIO AT 196%1 ; €1.40 PROPOSED DIVIDEND PER SHARE2 RoATE3 stands at 13.9% for the year, up by 0.5 ppt Estimated solvency ratio at c. 196%1 › Solvency above target range set at 155-175% › Stable retention with reinsurance cession rate at 23%; reinsurance treaties renewed at stable condition

  6. Slide 6: Managing Through Continued Cycle

    MANAGING THROUGH CONTINUED CYCLE P O S T C O V I D I N F L AT I O N E P I S O D E N O W O V E R CCUURRRREENNTTSSTAT TATUUSS ( C L I E N T AC T I V I T Y ) (%) 13.8 • Exposure growth at +4.4% in FY-24 (€715bn) outpacing revenues as Coface is supporting its clients’ growth 8.4 • Remained selective on

  7. Slide 7: Our CSR Strategy and Commitments

    OUR CSR STRATEGY AND COMMITMENTS RESPONSIBLE RESPONSIBLE RESPONSIBLE DRIVE THE CULTURE INSURER EMPLOYER ENTERPRISE › Further decrease › Continuously improve › Pursue deployment of › Strengthen our corporate emissions of investment employee engagement emissions reduction plan CSR image with more port

  8. Slide 8: Part 2: FY-2024 Results

    coface FOR TRADE PART 2 FY-2024 RESULT:

  9. Slide 9: Improved Q4-24 Leaves Total Year Revenue Almost Stable

    IMPROVED Q4-24 LEAVES TOTAL YEAR REVENUE ALMOST STABLE (1.3)% (0.6)% Total revenue down -0.6% vs. FY-23 at constant FX and perimeter In €m 1,868 1,845 › Trade credit insurance* revenues decrease -2.2% at constant FX. Insurance Revenue 2024 ended on a slightly more positive note (Q4-24 insurance (IR)

  10. Slide 10: Slow Economy and Low Inflation with Slightly Better End of Year

    SLOW ECONOMY AND LOW INFLATION WITH SLIGHTLY BETTER END OF YEAR Western Europe Northern Europe Central Europe Mediterranean & Africa 3.1% 0.4% (4.6)% (4.6)% (1.9)% (3.2)% 2.3% 5.6% 526 539 380 392 380 362 177 174 FY-23 FY-24 FY-23 FY-24 FY-23 FY-24 FY-23 FY-24 Strong growth in services Selective ren

  11. Slide 11: Rebounding New Sales, Still Low Contribution from Client Activity

    REBOUNDING NEW SALES, STILL LOW CONTRIBUTION FROM CLIENT ACTIVITY production* 129 New production rebounding at €126m driven by 126 New 110 117 increased demand and growth investments mostly on mid-market clients FY-21 FY-22 FY-23 FY-24 92.9% 93.1% 92.3% Retention 91.7% Retention rate at high level i

  12. Slide 12: Gross Loss Ratio at 33.4%, with High Reserves Bookings and Releases

    GROSS LOSS RATIO AT 33.4%, WITH HIGH RESERVES BOOKINGS AND RELEASES Loss ratio before reinsurance and including claims handling expenses, in % › Normalization continues: 40.7 38.1 37.5 ‒ Number of bankruptcies clearly exceed 2019 in most countries 35.8 33.4 33.2 31.7 33.7 35.0 26.2 ‒ Number of claim

  13. Slide 13: 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 50.5 35.5 35.8 33.4 38.4 21.4 27.5 27.3 14.4 19.0 18.3 19.9 6.9 8.8 8.2 FY-21 FY-22 FY-23 FY-24 FY-21 FY-22 FY-23

  14. Slide 14: Risks Well Under Control with Some Local Cases

    RISKS WELL UNDER CONTROL WITH SOME LOCAL CASES Loss ratio before reinsurance (by quarter), including claims handling expenses – in % 10%* 4%* 7%* Group North America Latin America Asia Pacific 71.5 71.9 26.2 33.2 31.7 33.7 35.0 33.3 29.8 39.0 29.7 22.3 21.5 24.9 25.3 15.3 13.5 9.2 -35.8 -31.6 Q4-23

  15. Slide 15: Stable Revenues and Continued Investments Drive Cost Ratio Up

    STABLE REVENUES AND CONTINUED INVESTMENTS DRIVE COST RATIO UP 5.3% 5.5% 6.1% 5.7% 859 904 236 223 221 225 221 In €m 196 48 51 197 45 50 47 Cost ratio before reinsurance, in % External costs 34.8 36.0 31.7 33.5 33.7 (commissions) 662 708 178 171 177 174 186 Internal costs FY-23 FY-24 Q4-23 Q1-24 Q2-2

  16. Slide 16: Reinsurance Treaties Again Renewed at Stable Conditions

    REINSURANCE TREATIES AGAIN RENEWED AT STABLE CONDITIONS 12M-23 12M-24 Insurance revenue 1,559.1 1,512.9 › Premium cession rate at 27.6% Net earned premiums 1,135.0 1,095.7 › Claims cession rate at 23.7% with limited impact from 27.2% 27.6% Premium cession rate non-proportional reinsurance › Successf

  17. Slide 17: Net Combined Ratio Increased at 65.5%

    NET COMBINED RATIO INCREASED AT 65.5% +1.2 ppt In % 64.3 65.5 › Net combined ratio increased to 65.5% reflecting higher cost ratio Net combined ratio Net cost ratio on continued investments with stable revenues and slightly better 26.6 30.2 loss ratio in a more difficult economic environment Net los

  18. Slide 18: Financial Portfolio: Increased Underlying Income with Higher Rates

    FINANCIAL PORTFOLIO: INCREASED UNDERLYING INCOME WITH HIGHER RATES Investment €m FY-23 FY-24 Real Estate Equities 5% Income from investment portfolio without gains on sales** 64.9 96.6 3% FVPL and gains on sales and impairement, net of hedging*** (3.7) 6.6 FX effect (38.7) (2.7) Loans, Deposit & Oth

  19. Slide 19: 2024 Net Income at €261.1M of Which €53.4M in Q4-2024

    2024 NET INCOME AT €261.1M OF WHICH €53.4M IN Q4-2024 Income statement items - in €m 12M-23 12M-24 Current operating income 367.9 417.9 › Net earned premiums down by 3.5% at €1,096m Other operating income and expenses (5.0) (8.6) Operating income 362.9 409.2 › Operating income up 12.8% on higher inv

  20. Slide 20: RoATE Stands at 13.9%, Up 0.5 ppt

    ROATE STANDS AT 13.9%, UP 0.5 PPT Change in equity In €m 4.0 2,193.6 (194.3) 261.1 72.0 2,050.8 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) translatio

  21. Slide 21: Part 3: Capital Management

    coface FOR TRADE PART 3 CAPITAL MANAG

  22. Slide 22: Solid Balance Sheet

    SOLID BALANCE SHEET FY-2024 simplified balance sheet In €m Financial strength 8,084 8,084 Goodw ill 240 › Fitch: AA-, stable outlook & intangible assets 2,196 Shareholders’ equity rating affirmed on 28 October 2024 3,357 Insurance investments Financing liabilities › Moody’s: A1, stable outlook 599 (

  23. Slide 23: Robust Solvency Over Time

    ROBUST SOLVENCY OVER TIME FY-2024 estimated Solvency ratio above target range Low sensitivity to market shocks market sensitivity tested through instantaneous shocks ( 4.0 ppt ) (1.1 ppt ) 196% * 199% * 4.8 ppts 196% * (2.0 ppt ) 31.12.2024 SCR cover 196% 201% +100 bps Interest rates (1) 192% +100 b

  24. Slide 24: Solvency Required Capital as at 31 December 2024

    SOLVENCY REQUIRED CAPITAL AS AT 31 DECEMBER 2024 196%1 PARTIAL INTERNAL MODEL 2,630 27 629 €m 1,391 (168) 1,340 Operational risk 47 253 (135) Tier 3 172 1,063 Tier 2 Counterparty risk 253 Tier 1 1,974 Market risk 348 Non-life underwriting risk 1,087 1,087 824 SCR components Diversification Tax adjus

  25. Slide 25: Part 4: Key Take-Aways & Outlook

    PART 4 KEY TAKE-AWAYS & OUTLOOK

  26. Slide 26: Key Take-Aways & Outlook

    KEY TAKE-AWAYS & OUTLOOK Coface delivers record high net income under IFRS17 methodology, up +8.6% in a rising claim environment › Net combined ratio at 65.5% remains well below through the cycle targets › Annualized RoATE (Return on Average Tangible Equity) at 13.9% › Investment income (€91.7m) ben

  27. Slide 27: Part 5: Appendices

    coface FOR TRADE PART 5 APPENDICES.

  28. Slide 28: 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 Q4-24 % % ex. FX* Insurance revenue 395.3 407.8 384.7 371.3 378.6 375.6 375.9 382.7 +3.1% +3.7% Services revenue 79.8 76.8 73.4 79.2 85.0 83.4 78.0 85.5 +8.0%

  29. Slide 29: 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 Q4-24 V% ex. FX* Northern Europe 102.2 97.9 91.2 88.2 97.8 87.2 86.8 90.4 +2.4% Western Europe 96.6 97.7 95.4 90.3 91.7 95.9 100.8 103.3 +12.0% Central Euro

  30. Slide 30: Exposure in Emerging Markets Maintained at a Stable Share

    EXPOSURE IN EMERGING MARKETS MAINTAINED AT A STABLE SHARE Evolution of TCI exposure1 per FY-2024 total TCI exposure1 – Top 10 Advanced vs. Emerging markets (in €bn) countries vs. others (in %) Germany Dec-21 82% 18% 588 11.4% USA Italy Dec-22 82% 18% 667 11.2% 37.3% France Spain Dec-23 82% 18% 685 U

  31. Slide 31: Combined Ratio Calculation

    COMBINED RATIO CALCULATION In €k FY-2023 FY-2024 › Combined ratio before reinsurance Earned Premiums (B) (C) Insurance revenue [A] 1,559,063 1,512,923 loss ratio before reinsurance + cost ratio before reinsurance (A) (A) Ceded premiums (424,015) (417,176) Net earned premiums [D] 1,135,048 1,095,747

  32. Slide 32: Q4-24 Results vs. Consensus

    Q4-24 RESULTS VS. CONSENSUS in M€ # of replies Consensus Q4-2024 Spread Comment Total revenue 5 450 468 +18 Gross Earned Premiums 5 369 383 +13 Better end of year across businesses Net Earned Premiums 5 268 279 +12 NEP/GEP 5 72.5% 73.0% +0.5 ppt Stable cession rate Net underwriting income 5 79 85 +6

  33. Slide 33: Management Team

    MANAGEMENT TEAM GROUP MANAGEMENT COMMITTEE GROUP EXECUTIVE COMMITTEE Xavier DURAND Hugh BURKE Ernesto DE MARTINIS Chief Executive Officer CEO Asia Pacific CEO Mediterranean & Africa › +35 years of international experience in › +20 years of international exp. › +20 years of experience in regulated fi

  34. Slide 34: Corporate Governance as of 31 December 2024

    CORPORATE GOVERNANCE AS OF 31 DECEMBER 2024 Board of directors AUDIT & ACCOUNTS COMMITTEE Chairman Bernardo SANCHEZ INCERA Age: 64 › 3 members: 2 independents incl. the chairman (independent) › Laetitia Leonard-Reuter (Chm.) › Board member › Isabelle Laforgue › David Gansberg Isabelle LAFORGUE Laeti

  35. Slide 35: Financial Calendar & Investor Relations Contacts

    FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own shares transactions Next Event Date Own shares transactions Liquidity Buy-back Q1-25 Results 05 May 2025 (after market closing) Date LTIP TOTAL % Total of Voting Agreement (cancellation) (in shares) # Shares rights Annual Shareholders Mee

  36. Slide 36: Important Legal Information

    IMPORTANT LEGAL INFORMATION IMPORTANT NOTICE: Coface Group’s current beliefs, assumptions and expectations of its future This presentation has been prepared exclusively for the purpose of the disclosure performance, taking into account all information currently available. The Coface Group is under n

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