Slide 1: H1-2024 Results Presentation to Financial Analysts
H 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 5 AUGUST 2024
Slide 2: H1-2024 Results: Net Income at €142.3M, RoATE 15.3%
H1-2024 RESULTS: NET INCOME AT €142.3M – ROATE STANDS AT 15.3% 01 02 03 04 05 H1-2024 H1-2024 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 technology by Wiz
Slide 3: Part 1: H1-2024 Highlights
coface FOR TRADE PART 1 H1-2024 HIGHLIC
Slide 4: Coface Reports H1-2024 Net Income at €142.3M, Solvency at 195%
COFACE REPORTS H1-2024 NET INCOME AT €142.3M, SOLVENCY AT 195% Turnover reached €923m y-t-d, down 3.1% at constant FX and perimeter › Trade Credit Insurance premiums decreasing by -5.3% at constant FX. Client activity remains slightly negative. › Client retention still high (92.8%) but down from 202
Slide 5: Key Uncertainties Remain
KEY UNCERTAINTIES REMAIN AS EXPECTED UNCERTAIN • Decelerating inflation and slowing economy weigh on • China economic rebound premiums • Technology boom ability to last • High political uncertainty • Claims normalization upward trend slope • Insolvencies uptrend continues • Central banks response to
Slide 6: CSR: Strategy and Targets
CSR: STRATEGY AND TARGETS RESPONSIBLE RESPONSIBLE RESPONSIBLE DRIVING THE INSURER EMPLOYER ENTERPRISE C U LT U R E › Decreased GHG emissions of › Completed a carbon footprint › › First First EcoVadis EcoVadis ratingrating (June (June 24): 24): silver medal/ › Diversity & Inclusion: Top 15%medal/ Top
Slide 7: Part 2: H1-2024 Results
coface FOR TRADE PART 2 H1-2024 RESL
Slide 8: Turnover Down -3.1% on Lower Premiums While Services Up +6.5%
TURNOVER DOWN -3.1% ON LOWER PREMIUMS WHILE SERVICES ARE UP +6.5% (3.8)% (3.1)% Total revenue down -3.1% vs. H1-23 at constant FX and perimeter In €m 960 923 › Trade credit insurance* premiums decrease of -5.3% at constant FX. Insurance Revenue Client activity is not rebounding with lower inflation
Slide 9: Lower Inflation and Slowing Economies Drive Turnover Evolution
LOWER INFLATION AND SLOWING ECONOMIES DRIVE TURNOVER EVOLUTION Western Europe Northern Europe Central Europe Mediterranean & Africa (3.4)% (3.8)% (7.5)% (7.5)% (4.5)% (7.3)% 3.4% 6.0% 267 276 194 188 200 185 91 87 H1-23 H1-24 H1-23 H1-24 H1-23 H1-24 Good commercial performance on Services growing (+
Slide 10: New Production, Retention, Price and Volume Effects
REBOUNDING NEW SALES AND STILL NO CONTRIBUTION FROM ACTIVITY production* New production rebounding at €69m driven by New 72 69 58 63 increased demand and growth investments H1-21 H1-22 H1-23 H1-24 93.9% 94.4% 92.8% Retention 92.4% Retention rate at high level in a still competitive rate* market and
Slide 11: Gross Loss Ratio at 32.5%
GROSS LOSS RATIO AT 32.5%, WITH HIGH RESERVES BOOKINGS AND RELEASES Loss ratio before reinsurance and including claims handling expenses, in % 40.7 › Normalization continues: 39.4 38.1 37.5 33.2 31.7 32.5 26.2 ‒ Number of claims keeps increasing since mid-21 ‒ Lower premiums are putting upward press
Slide 12: Losses Under Control
LOSSES UNDER CONTROL 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 32.5 34.1 27.5 27.2 19.2 21.4 19.0 19.9 14.4 8.8 6.9 8.2 FY-21 FY-22 FY-23 H1-24 FY-21 FY-22 FY-23 H1-24 FY-21 FY-22 FY-23 H1-
Slide 13: 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 180.7 82.6 71.5 40.7 38.1 37.5 48.1 49.7 39.0 26.2 33.2 31.7 31.8 27.7 28.3 22.3 33.3 21.5 29.2 25.5 29.7 1
Slide 14: Lower Revenues and Continued Investment Drives Cost Ratio Up
LOWER REVENUES AND CONTINUED INVESTMENT DRIVES COST RATIO UP 6.9% 6.9% In €m 216 223 221 225 209 211 Cost ratio before reinsurance, in % 50 45 50 48 50 52 External costs 32.4 34.8 31.7 33.5 (commissions) 29.4 29.8 159 159 166 178 171 177 Internal costs Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q1-23 Q2-23
Slide 15: Reinsurance Reflects Low Loss Ratio
REINSURANCE REFLECTS LOW LOSS RATIO H1-23 H1-24 › Premium cession rate at 27.7% in line with stable cession Gross earned premiums 803.1 754.3 Net earned premiums 585.4 545.1 › Claims cession rate at 22.1% in line with previous year excluding Premium cession rate 27.1% 27.7% the triggering of XS trea
Slide 16: Net Combined Ratio Improved at 63.4%
NET COMBINED RATIO IMPROVED AT 63.4% -2.1 ppts In % 65.5 Net combined ratio 63.4 › Net combined ratio improved to 63.4% (vs. 65.5% in H1-23) with Net cost ratio 25.2 lower loss ratio and higher cost ratio 28.4 › Cost ratio up 3.2 ppts vs. H1-23 with lower revenues and continued Net loss ratio 40.3 3
Slide 17: Financial Portfolio: Increased Underlying Income with Higher Rates
FINANCIAL PORTFOLIO: INCREASED UNDERLYING INCOME WITH HIGHER RATES €m H1-23 H1-24 Investment Income from investment portfolio without gains on sales** 31.9 48.0 Real Estate Equities 5% FVPL and gains on sales and impairement, net of hedging*** (9.0) 5.6 3% FX effect (17.4) (7.0) Loans, Other (4.1) (
Slide 18: H1-2024 Net Income at €142.3M
H1-2024 NET INCOME AT €142.3M OF WHICH €73.8M IN Q2-2024 Income statement items - in €m H1-23 H1-24 Current operating income 185.5 217.7 › Net earned premiums down by 6.9% at €545m Other operating income and expenses (0.7) (0.5) Operating income 184.8 217.2 › Operating income up 17.5% Finance costs
Slide 19: RoATE Stands at 15.3%, Up 1.9 ppt
ROATE STANDS AT 15.3%, UP 1.9 PPT Change in equity In €m 2 050.8 (194.3) 142.3 (0.1) 4.3 2 002.9 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) translati
Slide 20: Part 3: Capital Management
coface FOR TRADE PART 3 CAPITAL MANAG
Slide 21: Solid Balance Sheet
SOLID BALANCE SHEET H1-2024 simplified balance sheet In €m Financial strength Goodw ill & intangible assets 7 864 7 864 › Fitch: AA-, stable outlook 237 Shareholders’ equity rating affirmed on 9 November 2023 2 005 Insurance investments Financing liabilities › Moody’s: A1, stable outlook 3 240 (incl
Slide 22: Robust Solvency Over Time
ROBUST SOLVENCY OVER TIME H1-2024 estimated Solvency ratio above target range Low sensitivity to market shocks market sensitivity tested through instantaneous shocks 25.7 ppts ( 18.9 ppts) 201%* 199%* 195%* 30.06.2024 SCR cover 195% 192%* ( 10.4 ppts) ( 0.4 ppts) +100 bps Interest rates (1) 191% 175
Slide 23: Solvency Required Capital as at 30 June 2024
SOLVENCY REQUIRED CAPITAL AS AT 30 JUNE 2024 195%1 PARTIAL INTERNAL MODEL 2,680 28 626 €m 1,443 1,377 (168) 47 243 Operational risk (140) 166 1,135 Tier 3 243 Tier 2 Tier 1 Counterparty risk 2 026 334 Market risk Non-life underwriting risk 1 135 1 135 897 SCR components Diversification Tax adjustmen
Slide 24: Part 4: Key Take-aways & Outlook
PART 4 KEY TAKE-AWAYS & OUTLOOK
Slide 25: Key Take-aways & Outlook
KEY TAKE-AWAYS & OUTLOOK Coface H1-2024 net income reaches €142.3m, up 10.4% › Net combined ratio remains below through the cycle targets at 63.4% in a slow economy, while we continue to invest deliberately › Investment income now reflects the higher yield environment › Annualized RoATE (Return on A
Slide 26: Part 5: Appendices
coface FOR TRADE PART 5 APPENDICES.»
Slide 27: 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 Q2-24 % % ex. FX* Insurance revenue 395.3 407.8 384.7 371.3 378.6 375.6 (7.9)% (7.2)% Services revenue 79.8 76.8 73.4 79.2 85.0 83.4 +8.7% +8.8% REVENUE 475.1 484.5 458.1
Slide 28: 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 V% ex. FX* Northern Europe 102.2 97.9 91.2 88.2 97.8 87.2 (11.0)% Western Europe 96.6 97.7 95.4 90.3 91.7 95.9 (1.9)% Central Europe 45.0 46.1 41.0 45.0 45.1 41.9
Slide 29: Exposure in Emerging Markets Maintained at a Stable Share
EXPOSURE IN EMERGING MARKETS MAINTAINED AT A STABLE SHARE Evolution of TCI exposure1 per H1-2024 total TCI exposure1 – Top 10 Advanced vs. Emerging markets (in €bn) countries vs. others (in %) Germany 11.6% USA Dec-21 82% 18% 588 France 36.6% 10.7% Italy Dec-22 82% 18% 667 Spain UK Dec-23 82% 18% 68
Slide 30: Combined Ratio Calculation
COMBINED RATIO CALCULATION In €k H1-23 H1-24 › Combined ratio before reinsurance Earned Premiums (B) (C) Gross earned premiums [A] 803 113 754 285 loss ratio before reinsurance + cost ratio before reinsurance (A) (A) Ceded premiums (217 743) (209 165) Net earned premiums [D] 585 370 545 119 › Combin
Slide 31: H1-24 Results vs. Consensus
H1-24 RESULTS VS. CONSENSUS # of in M€ Consensus Q2-24 Spread Comment replies Total revenue 5 467 459 (7.9) Declining inflation and weak economy weight on premiums Gross Earned Premiums 5 386 376 (10.6) Good fees and services revenues Net Earned Premiums 5 282 268 (14.6) NEP/GEP 5 73.1% 71.3% (1.8)
Slide 32: 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
Slide 33: Corporate Governance as of 30 June 2024
CORPORATE GOVERNANCE AS OF 30 JUNE 2024 Board of directors AUDIT & ACOUNTS 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 Laetitia L
Slide 34: Financial Calendar & Investor Relations Contacts
FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own shares transactions Own shares transactions Liquidity Buy-back Date LTIP TOTAL % Total of Voting Agreement (cancellation) Next Event Date (in shares) # Shares rights 30/06/2024 177,673 668,287 0 845,960 0.56% 149,333,832 9M-2024 Results 5
Slide 35: 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