Slide 1: 9M-2022 Results: Presentation to Financial Analysts
9 M - 2 0 2 2 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 27 OCTOBER 2022
Slide 2: 9M-2022 Results: Net Income at €228.4M, RoATE 16.4%
9M-2022 RESULTS: NET INCOME AT €228.4M – ROATE STANDS AT 16.4% 01 02 03 04 9M-2022 9M-2022 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 au
Slide 3: Part 1: 9M-2022 Highlights
coface FOR TRADE PART 1 9M-2022 HIGHL
Slide 4: Coface Reports €228.4M Net Profit in 9M-2022, of which €84.0M in Q3-22
COFACE REPORTS €228.4M NET PROFIT IN 9M-2022 OF WHICH €84.0M IN Q3-22 Turnover reached €1,363m y-t-d, up 15.2% at constant FX and perimeter and up 17.7% on a reported basis › Trade Credit Insurance premiums growing by 16.6% driven by high client activity in still inflationary environment › Client re
Slide 5: Continuing to Actively Mitigate Russia Risks
CONTINUING TO ACTIVELY MITIGATE RUSSIA RISKS TCI EXPOSURE* TO RUSSIA C U R R E N T S TAT U S (€bn at current rate) 4.8 • Exposure at constant FX down by 81% since mid-Feb 22 • 80% of remaining exposures are domestic • Notified claims activity still moderate Export • Further increased reserves level
Slide 6: Part 2: 9M-2022 Results
coface FOR TRADE PART 2 9M-2022 RESULT:
Slide 7: Turnover Growth at 15.2% Driven by TCI Premiums Up 16.6%
TURNOVER GROWTH AT 15.2% DRIVEN BY TCI PREMIUMS UP 16.6% 17.7% 15.2% Total revenue up 15.2% vs 9M-2021 at constant FX and perimeter In €m 1,363 1,158 › Trade credit insurance* premiums growing at 16.6% at constant Gross Earned Premiums FX due to strong client activity and record high retention and u
Slide 8: Still Strong Client Activity and High Retention
STILL STRONG CLIENT ACTIVITY AND HIGH RETENTION Western Europe Northern Europe Central Europe Mediterranean & Africa 16.0% 14.8% 10.7% 9.6% 17.6% 16.8% 15.4% 17.2% 362 314 271 277 234 250 115 136 9M-21 9M-22 9M-21 9M-22 9M-21 9M-22 9M-21 9M-22 High retention and positive activity. High retention and
Slide 9: Very High Activity and Increasingly Competitive Market
VERY HIGH ACTIVITY AND INCREASINGLY COMPETITIVE MARKET production* 114 New production at €82m, as Coface remains 102 New 96 82 committed to underwriting discipline despite growing market exuberance. 9M-19 9M-20 9M-21 9M-22 92.7% 93.5% Retention 92.2% 92.1% Retention rate at record level in a more ra
Slide 10: Gross Loss Ratio at 30.2% Still Below Mid Cycle
GROSS LOSS RATIO AT 30.2% STILL BELOW MID CYCLE Loss ratio before reinsurance and including claims handling expenses, in % › Normalization is under way: 30.2 29.5 29.6 28.9 32.2 29.5 ‒ Number of claims increasing since mid-21, nearing pre-crisis level 25.2 16.9 ‒ Large losses increasing but still be
Slide 11: Low Loss Ratio Across Most Regions, Russia Impacting CER the Most
LOW LOSS RATIO ACROSS MOST REGIONS, RUSSIA IMPACTING CER THE MOST Loss ratio before reinsurance, including claims handling expenses – in % 9%* 6%* 8%* Group North America Latin America Asia Pacific 63.7 72.3*** 51.8 60.1** 43.4** 45.8 48.6 30.2 35.9 21.4 27.3 14.4 7.7 8.8 10.6 6.9 FY-19 FY-20 FY-21
Slide 12: Loss Ratio for the Quarter Remains Low
LOSS RATIO FOR THE QUARTER REMAINS LOW Loss ratio before reinsurance (by quarter), including claims handling expenses – in % 9%* 6%* 8%* Group North America Latin America Asia Pacific 52.9 35.6 29.5 29.6 28.9 32.2 29.5 21.7 24.8 24.5 20.2 16.9 22.3 22.2 21.0 20.0 10.5 4.8 8.5 -0.3 2.6 1.3 0.9 2.2 1.
Slide 13: Continued Operating Leverage Driven by Long Term Productivity Programs
CONTINUED OPERATING LEVERAGE DRIVEN BY LONG TERM PRODUCTIVITY PROGRAMS 20.1% 16.0% Q3-22 vs Q3-21 at constant FX & 223 perimeter In €m 196 195 205 184 185 +25.0% 174 54 Cost ratio before reinsurance, in % 44 46 50 incl. profit External acquisition costs 39 42 42 sharing (commissions) 34.1 33.2 31.6
Slide 14: Record Low Past Losses and Commissions Drive Reinsurance Result
RECORD LOW PAST LOSSES AND COMMISSIONS DRIVE REINSURANCE RESULT 9M-21 9M-22 › Premium cession rate at 27.1% as public schemes have ended on June 30th 2021 Gross earned premiums 969.5 1,152.1 Net earned premiums 548.4 840.3 › Claims cession rate is down to 11.0% as positive development of 43.4% Premi
Slide 15: Net Combined Ratio at 63.8% on Still Low Loss Ratio
NET COMBINED RATIO AT 63.8% ON STILL LOW LOSS RATIO +7.7 ppts › Net combined ratio increased to 63.8% (vs 56.1% in 9M-21) as In % claims ratio has started to normalize which includes impact of 63.8 Russia crisis Net combined ratio 56.1 26.9 › Cost ratio down 3.8 ppts showing good cost discipline in
Slide 16: Financial Portfolio: Resilient in Turbulent Markets and Higher Yields
FINANCIAL PORTFOLIO: RESILIENT IN TURBULENT MARKETS AND HIGHER YIELDS Investment €m 9M-21 9M-22 Real Estate Equities 7% Income from investment portfolio without gains on sales** 25.2 29.5 3% Gains on sales and impairement, net of hedging*** 4.8 10.7 FX effect (0.7) 3.2 Loans, Other 1.7 (4.3) Deposit
Slide 17: Successful Liability Management De-Risking 2024 Refinancing Deadline
SUCCESSFUL LIABILITY MANAGEMENT DE-RISKING 2024 REFINANCING DEADLINE G U AR AN TE E D S U B O R D I N ATE D SOLVENCY II TIER 2 NOTES 2024 (€M) NOTES 2032 (€M) 380.0 300.0 153.4 €380M 4.125% €300M 6.000% Tier 2 Solvency II grandfathered Tier 2 226.6 Notes due in Notes due in March 2024 September 2032
Slide 18: 9M-2022 Net Income at €228.4M of which €84.0M in Q3-2022
9M-2022 NET INCOME AT €228.4M OF WHICH €84.0M IN Q3-2022 Income statement items - in €m 9M-21 9M-22 › Net earned premiums up by +53% at €840.3m on growing revenues Current operating income 266.1 334.8 and the end of public schemes Other operating income and expenses (0.8) (5.0) › Operating income up
Slide 19: RoATE Stands at 16.4%, Up 4.2 ppts
ROATE STANDS AT 16.4%, UP 4.2 PPTS Change in equity 2,141.0 (214.3) 228.4 (240.5) In €m 40.5 1,955.2 IFRS Equi ty a ttributable Distribu tio n to Net income impact Revaluatuion reserve Treasury shar es, IFRS Equi ty a ttributable to o wn ers of the par ent shareh olders (financial instr uments curre
Slide 20: Part 3: Key Take-aways & Outlook
PART 3 KEY TAKE-AWAYS & OUTLOOK
Slide 21: Key Take-aways & Outlook
KEY TAKE-AWAYS & OUTLOOK Coface continued to deliver a strong operating performance › Double digit revenue growth in both TCI (activity and retention) and business information › Annualized RoATE (Return on Average Tangible Equity) at 16.4% › Low loss ratio despite further increased reserves level re
Slide 22: Part 4: Appendices
coface FOR TRADE PART 4 APPENDICES,»
Slide 23: Key Figures (1/2)
KEY FIGURES (1/2) QUARTERLY AND CUMULATED FIGURES Income statement items in €m - Quarterly figures Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 % % ex. FX* Gross earned premiums 312.1 326.7 330.7 343.2 361.3 392.7 398.1 +20.4% +17.6% Services revenue 65.9 63.4 59.6 66.3 69.5 71.4 70.1 +17.6% +10.2% REV
Slide 24: Key Figures (2/2)
KEY FIGURES (2/2) REVENUE BY REGION: QUARTERLY AND CUMULATED FIGURES Total revenue by quarter - in €m Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 % ex. FX* Northern Europe 82.2 84.7 83.5 81.1 93.0 91.9 92.4 +8.8% Western Europe 75.5 78.2 79.9 83.0 80.8 93.3 96.8 +19.5% Central Europe 36.6 38.8 39.9 41
Slide 25: Combined Ratio Calculation
COMBINED RATIO CALCULATION In €k 9M-2021 9M-2022 › Combined ratio before reinsurance Earned Premiums (B) (C) Gross earned premiums [A] 969,451 1,152,141 loss ratio before reinsurance + cost ratio before reinsurance (A) (A) Ceded premiums (421,088) (311,832) Net earned premiums [D] 548,363 840,309 ›
Slide 26: Q3-22 Results vs Consensus
Q3-22 RESULTS VS CONSENSUS # of in M€ Consensus Q3-2022 Spread Comment replies Total revenue 4 457 468 +12 Revenue growth driven by TCI premiums on high client Gross Earned Premiums 4 391 398 +7 retention and client activity in inflationary environment Net Earned Premiums 4 286 293 +7 NEP/GEP 4 73.3
Slide 27: Financial Calendar & Investor Relations Contacts
FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own shares transactions Next Event Date FY-2022 Results 16 February 2023 after market close Own shares transactions Liquidity Buy-back Date LTIP TOTAL % Total of Voting Agreement (cancellation) 2022 Annual shareholders meeting 16 May 2023 (in
Slide 28: 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