Slide 1: 9M-2023 Results Presentation to Financial Analysts
9 M - 2 0 2 3 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 14 NOVEMBER 2023
Slide 2: 9M-2023 Results: Net Income at €189.7M – RoATE at 14.1%
9M-2023 RESULTS: NET INCOME AT €189.7M – ROATE STANDS AT 14.1% 01 02 03 04 9M-2023 9M-2023 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-2023 Highlights
coface FOR TRADE PART 1 9M-2023 HIGHL
Slide 4: Coface Reports €189.7M Net Profit in 9M-2023 of Which €60.9M in Q3-2023
COFACE REPORTS €189.7M NET PROFIT IN 9M-2023 OF WHICH €60.9M IN Q3-2023 Turnover reached €1,418m y-t-d, up +7.1% at constant FX and perimeter › Trade Credit Insurance premiums growing by +6.6%. Negative client activity in Q3-23 with lower inflation and sharp economic slowdown weighting on premium gr
Slide 5: Deep Dive on Insurance Finance Expense (IFE)
DEEP DIVE ON INSURANCE FINANCE EXPENSE (IFE) MOVING FORWARD IMPACT REFLECTING HIGHER RATES AND RESERVES M€ % M€ % of reserves 6 • Moving forward (unwinding of discount) is the main and more 15 5 predictable driver of IFE 4 • It closely follows current interest rates as Coface’s reserves are 10 3 rel
Slide 6: Part 2: 9M-2023 Results
coface FOR TRADE PART 2 9M-2023 RESUL
Slide 7: Turnover Growth at 7.1% with Sharp Activity Slowdown
TURNOVER GROWTH AT 7.1% WITH SHARP ACTIVITY SLOWDOWN 5.3% 7.1% Total revenue up +7.1% vs 9M-22 pro forma at constant FX and perimeter In €m 1,418 1,347 › Trade credit insurance* premiums growing at +6.6% at constant FX Insurance Revenue due to record high retention and past client activity during th
Slide 8: High Retention Across Regions, Activities Reflecting Local Economy
HIGH RETENTION ACROSS REGIONS, ACTIVITIES REFLECTING LOCAL ECONOMY Western Europe Northern Europe Central Europe Mediterranean & Africa 7.0% 7.4% 4.0% 4.3% (4.3)% (5.6)% 10.9% 14.5% 399 360 271 290 280 291 138 132 9M-22 9M-23 9M-22 9M-23 9M-22 9M-23 9M-22 9M-23 All business lines contributing Activi
Slide 9: Reduced Activity, Improving Pricing & New Sales
REDUCED ACTIVITY, IMPROVING PRICING & NEW SALES production* 114 New production rebounding at €89m driven by New 102 82 89 increased demand 9M-20 9M-21 9M-22 9M-23 92.7% 93.5% 93.9% Retention 92.1% Retention rate at record level in a still rate* competitive market 9M-20 9M-21 9M-22 9M-23 1.0% 1.6% ef
Slide 10: Gross Loss Ratio at 38.8%, in a Deteriorating Economy
GROSS LOSS RATIO AT 38.8%, IN A DETERIORATING ECONOMY Loss ratio before reinsurance and including claims handling expenses, in % 41.8 40.7 › Slow normalization continues: 38.8 35.5 38.1 37.5 35.5 31.5 32.4 ‒ Number of claims increasing since mid-21, now 8% lower than in 2019 with claims amount now s
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%* 5%* 7%* Group North America Latin America Asia Pacific 63.7 72.3** 51.8 104.1 48.6 35.5 38.8 50.5 35.6 29.2 21.4 14.4 19.0 6.9 8.8 8.2 FY-20 FY-21 FY-22 9M-23 FY-20 FY-21 FY-
Slide 12: Risks Well Under Control Excluding LatAm Large Case
RISKS WELL UNDER CONTROL EXCLUDING LATAM LARGE CASE Loss ratio before reinsurance (by quarter), including claims handling expenses – in % 9%* 5%* 7%* Group North America Latin America Asia Pacific 165.8 180.7 82.6 68.7 47.2 48.1 49.7 31.5 32.5 41.8 35.5 40.7 38.1 37.5 31.8 27.7 28.3 15.0 41.2 19.1 2
Slide 13: Cost Ratio Under Control Despite Revenue Momentum Slowdown
COST RATIO UNDER CONTROL DESPITE REVENUE MOMENTUM SLOWDOWN 0.5% 4.0% 215 220 209 211 216 In €m 195 189 53 50 50 52 50 46 47 Cost ratio before reinsurance, in % External costs (commissions) 30.6 31.6 35.1 32.4 29.6 29.4 29.8 162 170 159 159 166 143 148 Internal costs Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-
Slide 14: Reinsurance Results Benefit from High Reinsurance Commissions
REINSURANCE RESULTS BENEFIT FROM HIGH REINSURANCE COMMISSIONS 9M-22 9M-23 › Premium cession rate at 27.2% Insurance revenue 1,136.6 1,187.8 › Claims cession rate at 24.6% in line with premium cession rates Net earned premiums 831.3 864.2 with limited impact from non-proportional treaty on large loss
Slide 15: Net Combined Ratio at 66.0%
NET COMBINED RATIO AT 66.0% +0.3 ppt In % 65.7 66.0 Net combined ratio › Net combined ratio increased to 66.0% (vs 65.7% in 9M-22) Net cost ratio 26.8 25.7 reflecting improving cost ratio and slightly higher loss ratio in a more difficult economic environment Net loss ratio 38.9 40.2 › Cost ratio do
Slide 16: Financial Portfolio: Increased Underlying Income with Higher Rates
FINANCIAL PORTFOLIO: INCREASED UNDERLYING INCOME WITH HIGHER RATES €m 9M-23 Investment Real Estate Income from investment portfolio without gains on sales** 49.8 Equities 6% FVPL and gains on sales and impairement, net of hedging*** (9.5) 3% FX effect (17.8) Other (8.0) Loans, Deposit & 14.5 other N
Slide 17: 9M-2023 Net Income at €189.7M of Which €60.9M in Q3-2023
9M-2023 NET INCOME AT €189.7M OF WHICH €60.9M IN Q3-2023 Income statement items - in €m 9M-22 9M-23 Current operating income 280.5 274.4 › Net earned premiums up by 4.0% at €864m Other operating income and expenses (5.0) (0.9) Operating income 275.5 273.4 › Operating income down -0.8% Finance costs
Slide 18: RoATE Stands at 14.1%, Up 1.4 ppt
ROATE STANDS AT 14.1%, UP 1.4 PPT Change in equity 2,018.6 (227.0) (10.0) In €m 189.7 12.4 1,983.7 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 umen
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 again a good set of results in a more challenging environment › TCI revenues resisting against sharp economic slowdown thanks to retention and diversification by geography and sectors › Net combined ratio under IFRS 17 at 66.0% › Double digit growth in capita
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 statement items in €m - Quarterly figures Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 % % ex. FX* Insurance revenue 359.2 374.0 403.5 379.0 395.3 407.8 384.7 (4.7)% (1.7)% Services revenue 68.8 71.6 70.1 73.0 79.8 76.8 73.4 +4.8% +8.1% REVENUE 4
Slide 23: Key Figures (2/2)
KEY FIGURES (2/2) REVENUE BY REGION: QUARTERLY AND CUMULATED FIGURES Total revenue by quarter - in €m Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 % ex. FX* Northern Europe 94.7 92.8 92.7 92.9 102.2 97.9 91.2 (1.3)% Western Europe 79.8 87.0 103.9 88.9 96.6 97.7 95.4 (7.4)% Central Europe 46.9 42.6 48.5
Slide 24: Combined Ratio Calculation
COMBINED RATIO CALCULATION In €k 9M-2022 9M-2023 › Combined ratio before reinsurance Earned Premiums (B) (C) Insurance revenue [A] 1,136,622 1,187,811 loss ratio before reinsurance + cost ratio before reinsurance (A) (A) Ceded premiums (305,340) (323,626) Net earned premiums [D] 831,282 864,185 › Co
Slide 25: Q3-23 Results vs Consensus
Q3-23 RESULTS VS CONSENSUS # of in M€ Consensus Q3-2023 Spread Comment replies Total revenue 5 492 458 (34) Premium growth benefit from high retention but activity Insurance Revenue 5 416 385 (31) level is weaker in more difficult economic environment Net Earned Premiums 5 304 279 (25) NEP/IR 5 73.1
Slide 26: Financial Calendar & Investor Relations Contacts
FINANCIAL CALENDAR & INVESTOR RELATIONS CONTACTS Calendar Own shares transactions Next Event Date Own shares transactions FY-2023 Results 27 February 2024 (after market close) Liquidity Buy-back Date LTIP TOTAL % Total of Voting Agreement (cancellation) Investor Day 5 March 2024 – Paris (in shares)
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