Slide 1: 9M-2019 Results: Presentation to Financial Analysts
9M-2019 RESULTS PRESENTATION TO FINANCIAL ANALYSTS 23 OCTOBER 2019
Slide 2: 9M-2019 Results: Net income at €117.3m; RoATE stands at 9.5%
9M-2019 Results: Net income at €117.3m; RoATE stands at 9.5% 1 2 3 4 9M-2019 9M-2019 KEY TAKE AWAYS APPENDICES HIGHLIGHTS RESULTS & OUTLOOK 2 9M-2019 RESULTS | PRESENTATION TO FINANCIAL ANALYSTS | 23 OCTOBER 2019
Slide 3: Part 1: 9M-2019 Highlights
coface PART 1 9M-2019 HIGHLIGHTS /
Slide 4: Coface reports another strong quarter
Coface reports another strong quarter Turnover reached €1,103.4m y-t-d, up 5.6% at constant FX and perimeter, Q3-2019 up 3.8% y-o-y − All regions continue to contribute to growth − New production is improving, retention remains high − Lower client activity growth reflects slowing global economy 9M-2
Slide 5: Part 2: 9M-2019 Results
coface PART 2 9M-2019 RESULTS /
Slide 6: Turnover growth at 5.6% driven by credit insurance premiums
Turnover growth at 5.6% driven by credit insurance premiums 6.5% 5.6% Total revenue up 5.6% vs 9M-2018 at constant FX and perimeter In €m 1,103 1,036 ► Trade credit insurance1 growing 6.7% at constant FX and perimeter. Q3-2019 (+5.0%) slowing down vs previous quarters Gross Earned Premiums on slowin
Slide 7: All regions contributing positively to growth
All regions contributing positively to growth Western Europe Northern Europe Central Europe Mediterranean & Africa 3.1% 2.9% 2.0% 2.0% 9.2% 2.3% 4.3% 4.9% 277 289 219 228 233 213 101 110 9M-18 9M-19 9M-18 9M-19 9M-18 9M-19 9M-18 9M-19 Growing new sales and retention. Growth at constant scope driven
Slide 8: Growing new business, record high retention, slowing activity
Growing new business, record high retention, slowing activity production1 112 102 90 96 Confirmed new business recovery while keeping New selective growth strategy 9M-16 9M-17 9M-18 9M-19 Retention rate1 91.4% 92.2% 88.6% 89.7% Record high retention 9M-16 9M-17 9M-18 9M-19 Price effect 1 (1.1)% (1.6
Slide 9: Gross loss ratio remains strong in more complex environment
Gross loss ratio remains strong in more complex environment Loss ratio before reinsurance and including claims handling expenses, in % ► YTD gross loss ratio still down by 1.2 ppt. y-o-y 43.8 45.0 46.5 45.3 41.9 45.9 42.6 39.7 39.8 43.6* 46.3* 45.1* 42.2** ► Claims activity increasing slightly in ri
Slide 10: Loss ratio stable at a low level in most regions
Loss ratio stable at a low level in most regions Loss ratio before reinsurance, including claims handling expenses – in % 9%* 8%* 6%* Group North America Asia Pacific Latin America 146.8 85.0 63.3 60.2 57.9** 58.2*** 51.4 49.0 47.7 53.8 44.2** 42.6 39.1 35.9 23.6 26.6 FY-16 FY-17 FY-18 9M-19 FY-16 F
Slide 11: Operational leverage and one-offs driving 2ppts cost ratio improvement
Operational leverage and one-offs driving 2ppts cost ratio improvement (0.6)% (1.9)% In €m 175 175 176 177 174 External acquisition 44 41 41 40 42 costs (commissions) Cost ratio before reinsurance, in % 34.8 35.6 35.7* 37.0 36.0 33.2 34.6 33.7 131 134 134 137 132 Internal costs Q3-18 Q4-18 Q1-19 Q2-
Slide 12: Reinsurance results reflect low loss ratio and stabilizing cession rate
Reinsurance results reflect low loss ratio and stabilizing accounting cession rate 9M-18 9M-19 Gross earned premiums 852.9 917.9 ► Premiums cession rate stabilized Net earned premiums 606.4 652.8 28.9% 28.9% ► Slightly higher claims cession rate on old years recoveries Premium cession rate Gross cla
Slide 13: Net combined ratio at 76.8%; below through the cycle average
Net combined ratio at 76.8%; below through the cycle average (2.27) ppts. In % Net combined ratio 79.0 76.8 ► Net combined ratio improved to 76.8% (vs 79.0% in 9M-18) Net cost ratio 34.0 31.7 ► Cost ratio improved by 2.3 ppts. thanks to positive operating leverage and one-off savings Net loss ratio
Slide 14: Financial portfolio: yield almost stable despite low rates
Financial portfolio: yield almost stable despite low rates €m 9M-18 9M-19 Investment Real Estate Income from investment portfolio without gains on sales** 32.7 32.6 8% Equities Gains on sales and impairment / impairment's release 6.4 7.3 6% FX effect 9.5 4.0 Loans, Other (6.2) (15.5) Bonds Deposit &
Slide 15: 9M-2019 net income up 19% at €117.3m
9M-2019 net income up 19% at €117.3m, of which €38.8m in Q3-2019 Income statement items - in €m 9M-18 9M-19 Current operating income 165.3 174.1 ► Strong operating performance in 9M-2019 Fit to Win investments & restructuring expenses (4.2) (2.3) ► Limited restructuring charges Other operating incom
Slide 16: RoATE stands at 9.5% for 9M-2019
RoATE stands at 9.5% for 9M-2019 Change in equity In €m 17.5 1,888.7 67.1 1,806.2 (119.4) 117.3 IFRS Equity Distribution to Net income impact Revaluatuion reserve Treasury shares, IFRS Equity attributable to owners shareholders (financial instruments currency translation attributable to owners of th
Slide 17: Part 3: Key take-aways & outlook
PART 3 KEY TAKE-AWAYS & OUTLOOK
Slide 18: Key take-aways & outlook
Key take-aways & outlook Another strong quarter in a slowing economy − Slower economic growth starting to be visible in Coface’s numbers (clients activity growing at a slower pace and pressure on financial portfolio return) − Loss frequency is increasing but Coface has avoided most major market loss
Slide 19: Part 4: Appendices
coface PART 4 APPENDICES /
Slide 20: Key figures (1/2)
Key figures (1/2) Quarterly and cumulated figures Income statement items in €m % Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 % Quarterly figures ex. FX* Gross earned premiums 278.4 282.3 292.2 289.7 299.0 306.3 312.6 +7.0% +5.0% Services revenue 65.6 58.7 58.5 59.3 66.4 60.8 58.3 (0.5)% (2.1)% REVENUE
Slide 21: Key figures (2/2)
Key figures (2/2) Revenue by region: quarterly and cumulated figures Total revenue by % Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 quarter - in €m ex. FX* Northern Europe 79.0 73.2 76.2 74.7 80.2 75.9 76.7 +0.2% Western Europe 74.8 68.4 69.6 71.2 74.9 72.6 71.9 +3.3% Central Europe 33.6 33.5 33.7 33.
Slide 22: Loss ratio of the quarter at 45.9%
Loss ratio of the quarter at 45.9% Loss ratio before reinsurance, including claims handling expenses – in % 9%* 8%* 6%* Group North America Asia Pacific Latin America 65.8 94.1 59.5 62.3 72.4* 46.5 45.3 39.8 41.9** 45.9 44.6 50.9 36.5 37.8 28.6 31.7 51.3 49.4 20.2 28.9 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19
Slide 23: Combined ratio calculation
Combined ratio calculation In €k 9M-2018 9M-2019 ► Combined ratio before reinsurance Earned Premiums (B) (C) loss ratio before reinsurance + cost ratio before reinsurance Gross earned premiums [A] 852,876 917,895 (A) (A) Ceded premiums (246,482) (265,069) Net earned premiums [D] 606,394 652,825 ► Co
Slide 24: Q3-19 results vs consensus
Q3-19 results vs consensus # of in M€ Consensus Q3-2019 Spread Comment replies Total revenue 366 371 +5 Growing revenues driven by growing new Gross Earned Premiums 305 313 +8 production, past client activity and high retention Net Earned Premiums 216 223 +7 NEP/GEP 71.2% 71.2% +0.0 ppt Cession rate
Slide 25: Financial Calendar & investor relations contacts
Financial Calendar & investor relations contacts Calendar Own shares transactions Next Event Date Own shares transactions Liquidity Buy-back Date LTIP TOTAL % Total of Voting FY-2019 Results 5 February 2020 after market close Agreement (cancellation) (in shares) # Shares rights 30/09/2019 96,557 1,1
Slide 26: Important legal information
Important legal information IMPORTANT NOTICE: This presentation has been prepared exclusively for the purpose of the disclosure of Coface Group’s results for the period ending 30 September 2019. This presentation includes only summary information and does not purport to be comprehensive. The Coface