Slide 1: 9M-2015 results
9M-2015 results Coface stabilizes results and posts profit of €98m November 2nd, 2015 (Limited examination by Statutory Auditors)
Slide 2: Important legal information
Important legal information IMPORTANT NOTICE: This presentation has been prepared exclusively for the purpose of the disclosure of Coface Group’s 9M-2015 results, released on November 2nd, 2015. This presentation includes only summary information and does not purport to be comprehensive. The Coface
Slide 3: Global growth stuck in low gear, yet all is not doom and gloom
Global growth stuck in low gear, yet all is not doom and gloom Advanced economies: A weak but GDP Growth pre-crisis level vs. 2014-2016 (in %) continuing recovery World, Advanced countries, Eurozone, Emerging countries & BRICS 7.8 • US: Growth is levelling off, but is still underpinned by In % 6.2 s
Slide 4: Business highlights for 9M-2015 (1/2)
Business highlights for 9M-2015 (1/2) 2014 comparative has been restated - IFRIC 21* Total turnover and premiums Net combined ratio Consolidated total turnover has been developing steadily 9M-2015 net combined ratio in line with H1-2015 - Growth sustainably driven by emerging markets - Risk mitiga
Slide 5: Business highlights for 9M-2015 (2/2)
Business highlights for 9M-2015 (2/2) 2014 comparative has been restated - IFRIC 21* Operating income & net income (group share) Financial strength Net income (group share): 98 millions euros Financial strength affirmed - 32 million euros for the quarter - Net income (group share) for Q3 in line w
Slide 6: Commercial performance
Commercial performance €m €m production1 118 106 104 • Still steady growth in new production New 90 (one-off large deals last year) 9M-2012 9M-2013 9M-2014 9M-2015 87.6% 88.6% 89.5% 88.5% Retention rate1-3 • Stable loyalty 9M-2012 9M-2013 9M-2014 9M-2015 Price effect 1-3 0.4% • Competitive pre
Slide 7: Turnover by region
Turnover by region Northern Europe Western Europe Central Europe Mediterranean and Africa Turnover Turnover Turnover (4.3)% (3.2)%* +1.1% (0.6)%* +2.0% +1.8%* Turnover +12.9% +12.1%* €m €m 351 €m €m 268 256 347 183 84 86 162 9M-2014 9M-2015 9M-2014 9M-2015 9M-2014 9M-2015 9M-2014 9M-2015 Asia Pacifi
Slide 8: Loss ratio evolution
Loss ratio evolution Gross loss ratio evolution1 Risk monitoring actions Actions to reduce loss ratio: examples of Russia and Brazil* 51.5% 51.1% 52.8% 48.6% 48.9% 49.8% 50.2% 47.4% 45.2% 100 Russia FY-2012 FY-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3-2015 65 52 48 • The measures unde
Slide 9: Loss ratio by region
Loss ratio by region Group Western Europe North America Northern Europe 51.1% 50.9% 42.0% 47.6% 34.8% 30.9% 57.7% 52.2% 49.5% 45.2% 19.3% 24.1% FY-2013 FY-2014 9M-2015 FY-2013 FY-2014 9M-2015 FY-2013 FY-2014 9M-2015 FY-2013 FY-2014 9M-2015 Central Europe Mediterranean & Africa Asia Pacific Latin Ame
Slide 10: Cost evolution
Cost evolution Stronger growth in intermediated countries leads to increased external acquisition costs €m Total expenses 186 180 510 +5.0% +2.7%* 536 176 173 172 178 175 35 41 39 40 102 119 37 36 40 Total 141 145 142 138 136 136 135 internal costs +2.2% +0.6%** 408 416 Q1-2014* Q2-2014* Q3-2014* Q4
Slide 11: Reinsurance result
Reinsurance result Ceded premium / GEP Ceded claims / Total claims Reinsurance impact 9M-2014 9M-2015 24% 23% 21% = 21% (39) (52) 9M-2014 9M-2015 9M-2014 9M-2015 Underwriting income before and after reinsurance Before reinsurance After reinsurance (-16.4%) 185 (-13.1%) 155 134 116 9M-2014 9M-2015 9M
Slide 12: Net combined ratio
Net combined ratio Evolution in net combined ratio +4.4ppts. 81.8% 77.4% 86.0% 86.4% +1.6 ppts.** 29.3% 81.6% 27.7% 77.7% 78.2% 76.4% 77.5% 33.9% 32.1% 28.1% 25.4% 28.7% 29.0% 27.7% +2.8 ppts. 49.7% 52.5% 52.3% 49.5% 47.4% 52.1% 49.8% 54.3% 53.5% Q1-2014* Q2-2014* Q3-2014* Q4-2014* Q1-2015 Q2-2015 Q
Slide 13: Prudent but proactive investment strategy
Investment income Progressive portfolio diversification 1 Equities Investment 8% Real Estate 4% Loans, Deposit & other financial Total Prudent but proactive investment strategy 22% € 2.44bn1 Bonds 66% €m 9M-2014 9M-2015 2 Income from investment portfolio 32.0 39.6 Investment management costs (2.6)
Slide 14: Shareholders' equity
Shareholders’ equity Changes in equity €m 99 (20) 1,725 (76) (5) 1,722 Total IFRS Equity Distribution to Net income Revaluation reserve Treasury shares, Total IFRS Equity Dec 31, 2014 shareholders impact (financial instruments currency translation September 30, 2015 (IFRIC21 restated) AFS) differenc
Slide 15: Public guarantees management
Follow-up news Financial Impacts* The law concerning the transfer has not yet been voted Valuation of the compensation in € M Public guarantees management Cash payment 77.2 Transferred net liabilities 1 12.5 Bpifrance is working to prepare for integration of the activity : Total compensation 89.
Slide 16: Investor Relations
Investor Relations • COFACE SA is a société anonyme (joint-stock corporation), with a Board Shareholder composition Issuer of Directors (Conseil d’Administration) incorporated under French Law Registered • Registered No. 432 413 599 with the Nanterre Trade and Companies Employees Number & Register &
Slide 17: Annexes
Annexes
Slide 18: Key Figures (1/2)
Key Figures (1/2) 9M-2015 focus 2014 - Restated IFRIC 21* 2015 % % Income statement items - in €m 9M-2015 vs. Q1 H1 9M FY Q1 H1 9M like-for-like 1 9M-2014 * Consolidated revenues 370.0 723.6 1,072.0 389.6 760.3 1,126.3 +5.1% +2.5% of which gross earned premiums 287.5 564.8 836.7 306.9 603.0 894.1 +6
Slide 19: Key Figures (2/2)
Key Figures (2/2) Q3-2015 focus 2014 - Restated IFRIC 21* 2015 % % Income statement items - in €m Q3-2015 vs. Q1 Q2 Q3 Q4 Q1 Q2 Q3 like-for-like 1 Q3-2014* Consolidated revenues 370.0 353.6 348.4 389.6 370.7 366.0 +5.1% +3.4% of which gross earned premiums 287.5 277.3 271.9 306.9 296.1 291.1 +7.1% +
Slide 20: Bridge table
Bridge table From Operating income to Operating income excluding restated items Q1-2014 Q1-2014 Q2-2014 Q2-2014 Q3-2014 Q3-2014 9M-2014 9M-2014 in thousand euros Q1-2015 Q2-2015 Q3-2015 9M-2015 published IFRIC 21 published IFRIC 21 published IFRIC 21 published IFRIC 21 Operating income 53,413 52,601
Slide 21: Overview of net combined ratio calculations
Overview of net combined ratio calculations Adjusted Net Earned Premiums Adjusted net operating expenses 9M-2014 9M-2014 In €k 9M-2014 Restated 9M-2015 In €k 9M-2014 Restated 9M-2015 IFRIC 21 IFRIC 21 A Gross Earned Premiums 836,668 836,668 894,109 Total operating expenses 509,352 509,797 535,512 Ce
Slide 22: Financial strength acknowledged by rating agencies
Financial strength acknowledged by rating agencies Coface is rated ‘AA-’ by Fitch Ratings and ‘A2’ by Moody’s, both with a stable outlook The positive assessments by the two agencies is based on 3 key drivers: 1. Coface's strong competitive position in the global credit insurance market 2. Robus
Slide 23: A strengthened and experienced management team
A strengthened and experienced management team CEO Jean-Marc Pillu 15 years of experience in insurance industry & former General Manager of Euler Hermes Working for Coface since 2010 Group central functions CFO Corporate Secretary Human Resources Manager Carine Pichon Carole Lytton Cécile Fourmann 1
Slide 24: Corporate governance
Corporate governance Board of Directors Laurent MIGNON Chairman CEO of Natixis BPCE (Marguerite Non independent members Jean ARONDEL Jean-Paul DUMORTIER BERARD-ANDRIEU) ► BPCE ► BPCE ► BPCE Laurent ROUBIN Pascal MARCHETTI ► BPCE ► BPCE Sharon MACBEATH Olivier ZARROUATI Eric HÉMAR Independent members