Slide 1: Q1-2024 Results Presentation to Financial Analysts
Q 1 - 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 6 M AY 2 0 2 4
Slide 2: Q1-2024 Results: Net Income at €68.4M, RoATE at 14.8%
Q1-2024 RESULTS: NET INCOME AT €68.4M – ROATE STANDS AT 14.8% 01 02 03 04 Q1-2024 Q1-2024 K E Y TA K E - APPENDICES HIGHLIGHTS R E S U LT S A W AY S & OUTLOOK Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust. You can check the aut
Slide 3: Part 1: Q1-2024 Highlights
coface FOR TRADE PART 1 Q1-2024 HIGHL
Slide 4: Coface Reports Q1-2024 Net Income at €68.4M, Up 11.9%
COFACE REPORTS Q1-2024 NET INCOME AT €68.4M, UP 11.9% Turnover reached €464m in Q1-2024, down -1.6% at constant FX and perimeter › Trade Credit Insurance premiums decreasing by -3.3%. Client activity is flat after two quarters of decrease. › Client retention still high (93.8%) but down from records;
Slide 5: Better Business Mix, Continued Investment and Inflation Timing
BETTER BUSINESS MIX, CONTINUED INVESTMENT AND INFLATION TIMING COST RATIO BEFORE REASSURANCE KEY HIGHLIGHTS • Decelerating inflation and economy weigh on premiums 0.6% -0.6% 0.5% while cost base still reflect past inflation -0.8% 31.7% 1.3% • Investments (technology, sales, data) in both TCI and BI
Slide 6: Part 2: Q1-2024 Results
coface FOR TRADE PART 2 Q1-2024 RES
Slide 7: Turnover Down -1.6% with Services Up +6.5%
TURNOVER DOWN -1.6% WITH SERVICES UP +6.5% (2.4)% (1.6)% Total revenue down -1.6% vs. Q1-23 at constant FX and perimeter In €m 475 464 › Trade credit insurance* premiums decrease of -3.3% at constant FX. Insurance Revenue Clients’ activity at 0 after two quarters of decline. (IR) 395 379 › Other rev
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 (5.1)% (5.8)% (4.2)% (4.2)% 0.2% (3.5)% 4.3% 7.3% 133 139 97 102 98 92 45 45 Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 Positive one-off in 2023 Selective renewals
Slide 9: Rebounding New Sales and No Contribution from Activity
REBOUNDING NEW SALES AND NO CONTRIBUTION FROM ACTIVITY production* 40 New production rebounding at €37m driven by New 35 37 32 increased demand and growth investments Q1-21 Q1-22 Q1-23 Q1-24 95.7% Retention 93.8% 94.8% 93.8% Retention rate at high level in a still competitive rate* market and some r
Slide 10: Gross Loss Ratio at 33.2%, with High Reserves Bookings and Releases
GROSS LOSS RATIO AT 33.2%, WITH HIGH RESERVES BOOKINGS AND RELEASES Loss ratio before reinsurance and including claims handling expenses, in % › Slow normalization continues: 40.7 38.1 37.5 33.2 26.2 ‒ Number of claims increasing since mid-21, Q1-2024 now 8% lower than in 2019 with claims amount now
Slide 11: Loss Ratios Remain Under Control in Most Regions
LOSS RATIOS REMAIN UNDER CONTROL IN MOST REGIONS Loss ratio before reinsurance, including claims handling expenses – in % 9%* 4%* 6%* Group North America Latin America Asia Pacific 82.6 50.5 35.5 35.8 33.2 33.3 6.9 39.0 21.4 27.5 14.4 19.0 19.9 -35.8 8.8 8.2 FY-21 FY-22 FY-23 Q1-24 FY-21 FY-22 FY-23
Slide 12: 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 % 9%* 4%* 6%* Group North America Latin America Asia Pacific 180.7 82.6 49.7 29.2 25.5 39.0 40.7 48.1 38.1 37.5 26.2 33.2 31.8 27.7 28.3 33.3 22.3 13.5 -31.6 -35.8 Q1-23
Slide 13: Lower Revenues and Continued Investment Drives Cost Ratio Up
LOWER REVENUES AND CONTINUED INVESTMENT DRIVES COST RATIO UP 5.6% 6.2% 216 223 221 209 211 In €m 50 45 50 50 52 External costs (commissions) 159 159 166 178 171 Internal costs Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 V% V% ex. FX Cost ratio before reinsurance, in % › Q1-24 gross cost ratio increased by 2.3 ppt
Slide 14: Reinsurance Reflects Low Loss Ratio
REINSURANCE REFLECTS LOW LOSS RATIO (in €m) Q1-23 Q1-24 Gross earned premiums 395.3 378.6 › Premium cession rate at 26.8% in line with stable cession Net earned premiums 287.6 277.2 › Claims cession rate at 21.1% in line with previous year excluding 27.3% 26.8% Premium cession rate the triggering of
Slide 15: Net Combined Ratio Improved at 63.1%
NET COMBINED RATIO IMPROVED AT 63.1% › Net combined ratio improved to 63.1% (vs. 66.3% in Q1-23) reflecting lower loss ratio › Cost ratio up 1.6 ppt vs. Q1-23 with good cost discipline against (3.2) ppts slower revenue growth and continued investments In % 66.3 66.8 › Q1-24 net loss ratio improved b
Slide 16: Financial Portfolio: Increased Underlying Income with Higher Rates
FINANCIAL PORTFOLIO: INCREASED UNDERLYING INCOME WITH HIGHER RATES €m Q1-23 Q1-24 Investment Real Estate Income from investment portfolio without gains on sales** 14.6 19.9 Equities 5% 3% FVPL and gains on sales and impairement, net of hedging*** (8.6) 4.1 FX effect (6.3) (2.7) Other (2.3) (3.4) Loa
Slide 17: Q1-2024 Net Income at €68.4M, Up 11.9%
Q1-2024 NET INCOME AT €68.4M, UP 11.9% Income statement items - in €m Q1-23 Q1-24 Current operating income 90.4 106.8 › Net earned premiums down by 3.6% at €277m Other operating income and expenses (0.3) (0.1) Operating income 90.0 106.8 › Operating income up 18.6% Finance costs (7.9) (12.6) Income
Slide 18: RoATE Stands at 14.8%, Up 1.4 ppt
ROATE STANDS AT 14.8%, UP 1.4 PPT Change in equity 68.4 1.1 (1.8) 2,118.5 0.0 In €m 2,050.8 IFRS Equi ty a ttributable to Distribu tio n to Net income impact Revaluation reserve Treasury shar es, cur rency IFRS Equi ty a ttributable to owners of the paren t shareh olders (financial instr uments) tra
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 in a slowing economy › Net combined ratio at 63.1% › Investment income net of Insurance Finance Expense turns positive › Annualized RoATE (Return on Average Tangible Equity) at 14.8% Diversification strategy starts to pay off: ›
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 statements items in €m - quarterly figures Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 % % ex. FX* Insurance revenue 395.3 407.8 384.7 371.3 378.6 (4.2)% (3.3)% Services revenue 79.8 76.8 73.4 79.2 85.0 +6.6% +6.9% REVENUE 475.1 484.5 458.1 450.4 463.7 (2.4
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 V% ex. FX* Northern Europe 102.2 97.9 91.2 88.2 97.8 (4.2)% Western Europe 96.6 97.7 95.4 90.3 91.7 (5.8)% Central Europe 45.0 46.1 41.0 45.0 45.1 (3.5)% Mediterranean
Slide 24: Combined Ratio Calculation
COMBINED RATIO CALCULATION In €k Q1-2023 Q1-2024 › Combined ratio before reinsurance Earned Premiums (B) (C) Insurance revenue [A] 395,345 378,649 loss ratio before reinsurance + cost ratio before reinsurance (A) (A) Ceded premiums (107,789) (101,420) Net earned premiums [D] 287,556 277,230 › Combin
Slide 25: Q1-24 Results vs. Consensus
Q1-24 RESULTS VS. CONSENSUS # of in M€ Consensus Q1-2024 Spread Comment replies Total revenue 5 465 464 (1.6) Lower inflation weights on premiums revenues Gross Earned Premiums 5 387 379 (8.6) Good services revenue growth Net Earned Premiums 5 282 277 (4.6) NEP/GEP 5 72.8% 73.2% +0.4 ppt No special
Slide 26: Financial Calendar & Investor Relations Contacts
FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own shares transactions Next Event Date 2023 Annual shareholders meeting 16 May 2024 Own shares transactions Liquidity Buy-back Date LTIP TOTAL % Total of Voting Agreement (cancellation) Ex-dividend date 22 May 2024 (in shares) # Shares right
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