Slide 1: 9M-2014 results
9M-2014 results Financial analysts presentation October 29th, 2014
Slide 2: Important legal information
Important legal information IMPORTANT NOTICE: This presentation has been prepared exclusively for the purpose of the conference call held on October 29th, 2014, for the publication of Coface Group’s 9M results 2014, to financial analysts. This presentation includes only summary information and does
Slide 3: 9M-2014 results in line with guidance
9M-2014 results in line with guidance Current operating income Total turnover and premiums Net combined ratio and net income (group share) Double digit Guidance +1.5%-+2.5% <80% growth Growth vs. +1.8%1 +1.6%1 +8.3%2 82.6% (5.2 ppts) +28.2%1 +7.3%1 +36.1%5 9M 2013 77.4% 27.0% 1,072 27.6% 164 9M 2014
Slide 4: Though painful, macroeconomic indicators point to recovery
Though painful, macroeconomic indicators point to recovery GDP Growth Exports of goods & services 7% 7% 6% 6% 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% 0% 2014e 2015e 2016e 2014e 2015e 2016e G7 G7 G7 - previous outlook G7 - previous outlook Latin america Euro area Latin america - previous outlook Euro area -
Slide 5: Organic growth based on innovation and ramp up in sales efficiency
Organic growth based on innovation and ramp up in sales efficiency One step ahead in innovation Commercial action plan underway & product differentiation to enhance earnings strength New appointments (Aug-2014) Commercial Manager Nicolas Garcia 17 years’ experience in credit insurance credit analyst
Slide 6: Commercial performance
Commercial performance €m 111 +8% 120 production1 93 New • New production steadily developing 9M 2012 9M 2013 9M 2014 89.1% 86.9% 87.4% 91.9% Retention rate1 • Strong client loyalty 2011 2012 9M 2013 9M 2014 0.0% Price effect 1 (0.9)% • Pricing reduction resulting from loss ratio (2.2)% (4.9)% decre
Slide 7: Turnover and Premiums
Turnover and Premiums Total turnover GEP NEP Fees / GEP (0.4)% +1.8% (0.7)% +1.6% +5.1% +8.3% 12.3% €m 1,093 11.9% 1,074 857 843 655 9M 2014 605 9M 2013* 9M 2014* 9M 2013* 9M 2014* 9M 2013* 9M 2014* 9M 2013 9M 2014 Continued growth in turnover Growth Growth * * at constant FX and perimeter Financial
Slide 8: Overview of turnover by region
Overview of turnover by region Northern Europe Western Europe Central Europe Mediterranean and Africa Turnover (1.9)% (1.4)% Turnover (2.0%) (2.5)% Turnover +4.3% +4.6% Turnover +2.0% +4.8% €m €m €m €m 273 268 81 84 159 162 354 347 9M 2013 9M 2014 9M 2013 9M 2014 9M 2013 9M 2014 9M 2013 9M 2014 Asia
Slide 9: Loss ratio evolution illustrates strong focus on technical profitability
Loss ratio evolution illustrates strong focus on technical profitability Gross loss ratio evolution1 51.7% 51.5% 51.1% 47.4% 48.0% • First 9 months results show 47,1% improvement in current year and all year loss ratios 2011 2012 2013 Q1 2014 H1 2014 9M 2014 Current year and all year gross loss rati
Slide 10: Costs under control
Costs under control Expenses under control Growing slower than premiums €m 517 (1.4%) 509 99 102 (2.6%) 1.6% 1.1% 418 407 9M2013 9M2014 GEP Internal costs 1 Internal costs External acquisition costs Ytd 2014 vs. Ytd 2013 growth at constant FX and perimeter Costs evolving at slower pace than premiums
Slide 11: Reinsurance result
Reinsurance result Retention Reinsurance commissions / Premiums ceded NEP 1 69.4% 71.6% 72.0% 76.0% GEP 34.2% 34.2% 35.7% NEP 1 831 813 31.5% €m 790 636 2 2011 2012 2013 9M 2014 2011 2012 2013 9M 2014 Reinsurance result €m 9M 2013 9M 2014 (43) (52) 1 Net Earned Premiums (NEP) computed as: Gross Earn
Slide 12: Net combined ratio improving
Net combined ratio improving Evolution in net combined ratio 80.2% 82.5% 82.6% (5.2 ppts) 77.4% 26.9% 28.7%1 27.0%1 27.6% 53.3% 53.8% 55.6% 49.7% 2012 2013 9M 2013 9M 2014 Net cost ratio Net loss ratio Net combined ratio in line with guidance 1 Excluding relocation costs : €8.3m FY 2013, €7.8m 9M 20
Slide 13: Investment income
Investment income Investment portfolio 1 Loans, Deposits Equities & Other financials 7% 22% Improved economic yield Total € 2.57bn1 Bonds 71% €m 2012 2013 9M 2013 9M 2014 Income from investment portfolio2 47.6 68.6 58,7 31.3 Investment management costs (7.7) (7.0) (5.8) (4.2) Other (2.9) 5.9 6.2 4.5
Slide 14: Increase in RoATE
Increase in RoATE Changes in equity Return on Average Tangible Equity (RoATE) Average Tangible 1,211 1,441 1,526 1,503 Equity €m €m RoATE 1,793 (227) 104 27 18 (6) 1,710 9.6% 8.6% 8.4% 5.3% Total IFRS Share prem. Net income Revaluation Currency Other variations Total IFRS Equity Distrib. impact rese
Slide 15: Annexes
Annexes
Slide 16: 9M 2014 - Key Figures
9M 2014 - Key Figures % Income statement items - in €m 9M 2013 9M 2014 % like-for-like 1 Consolidated revenues 1,075.9 1,072.0 (0.4)% +1.8% of which earned premiums 842.7 836.7 (0.7)% +1.6% Underwriting income after reinsurance 93.0 134.0 +44.0% 2 Investment income net of expenses and excluding rest
Slide 17: Q3 2014 - Key Figures
Q3 2014 - Key Figures % Income statement items - in €m Q3 2013 Q3 2014 % like-for-like 1 Consolidated revenues 349.7 348.4 (0.4)% +1.7% of which earned premiums 273.6 271.9 (0.6)% +1.4% Underwriting income after reinsurance 33.2 46.1 +39.0% Investment income net of expenses 8.4 9.2 9.9% Current oper
Slide 18: Overview of net combined ratio calculations
Overview of net combined ratio calculations Adjusted Net Earned Premiums Adjusted net operating expenses €m 9M-2013 9M-2014 €m 9M-2013 9M-2014 A Gross Earned Premiums 843 837 Total operating expenses excl. relocation costs1 509 509 Ceded premiums (238) (201) D Net Earned Premiums 605 636 Factoring r
Slide 19: A strengthened and experienced management team
A strengthened and experienced management team CEO Jean-Marc Pillu 14 years of experience in insurance industry & former General Manager of Euler Hermes Working for Coface since 2010 Group central functions Risk Underwriting, Info & Claims CFO Risks, Organisation & IT Manager Manager Carine Pichon N
Slide 20: Investor Relations
Investor Relations • COFACE SA is a société anonyme (joint-stock corporation), Calendar Issuer with a Board of Directors (Conseil d’Administration) incorporated under the laws of France. Next Event Date Registered • Registered No. 432 413 599 with the Nanterre Trade and 2014 FY Results February 17th