Slide 1: Half-year 2014 Financial Results
Half-year 2014 Financial Results Financial analysts presentation July 29th, 2014
Slide 2: Important legal information
Important legal information IMPORTANT NOTICE: This presentation has been prepared exclusively for the purpose of the conference call held on July 29th, 2014, for the publication of Coface Group’s first half results 2014, to research analysts. This presentation includes only summary information and d
Slide 3: H1-2014 results in line with guidance
H1-2014 results in line with guidance Current operating income Total turnover and premium Net combined ratio and net income (group share) Guidance Guidance Guidance Double digit +1.5%-+2.5% <80% 2013-2016 2014 2014 growth 82.6% 77.8% (4.8 ppts) Growth vs. +1.8%1 +1.7%1 +7.7%2 44 +24.0%5 +4.6%1 +40.4
Slide 4: Commercial performance (1/2)
Commercial performance (1/2) €m +14% 90 production1 79 68 New • New production continues to grow H1 2012 H1 2013 H1 2014 89.1% 86.9% 87.9% 92.3% Retention • High retention rate confirms that our service rate1 offering is meeting clients’ needs 2011 2012 H1 2013 H1 2014 0.0% Price effect 1 (0.8)% (2.
Slide 5: Turnover and Premium
Turnover and Premium Total turnover GEP NEP Fees / GEP (0.3)% +1.8% (0.8)% +1.7% +4.4% +7.7% 12.4% €m 12.2% 729 742 572 582 442 H1 2014 411 H1 2013* H1 2014* H1 2013* H1 2014* H1 2013* H1 2014* H1 2013 H1 2014 Continuous growth in turnover Growth Growth * * at constant FX and perimeter HALF-YEAR 201
Slide 6: Overview of turnover by region
Overview of turnover by region Northern Europe Western Europe Medaf 1 Central Europe Turnover +1.5% +0.6% Turnover Turnover (3.1%)(3.5)% Turnover +1.8% +5.2% +4.8% +5.2% €m €m €m 182 €m 246 238 109 179 111 56 54 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 Asia Pacific North Ameri
Slide 7: Loss ratio controlled
Loss ratio controlled Gross loss ratio evolution1 51.7% 51.5% 51.1% 47.4% 48.0% • First semester results show improvement in current year and all year loss ratios 2011 2012 2013 Q1 2014 H1 2014 Current year and all year gross loss ratio2 evolution 73.8% 77.4% 75.0% 72.5% 72.6% 73.0% 72.7% 49.4% 49.2
Slide 8: Cost under control
Cost under control Expenses under control Growing slower than premium (1.9%) €m 348 341 66 68 33 (3.2%) 1.7% 1 1.3% 282 Internal 273 costs H1 2013 H1 2014 GEP Internal costs Internal costs External acquisition costs H1 2014 vs. H1 2013 growth at constant FX and perimeter Cost evolution at lower pace
Slide 9: Gross combined ratio improving
Gross combined ratio improving Gross combined ratio evolution 80.9% 81.5% 82.5% (5.6 ppts) 76.9% 29.4% 30.5%1 28.8%1 29.0% 51.5% 51.1% 53.7% 48.0% H1 2013 H1 2014 2012 2013 Gross cost ratio Gross loss ratio Continuous improvement of gross combined ratio in H1 2014 1 Excluding relocation costs : €8.3
Slide 10: Reinsurance result
Reinsurance result Retention Reinsurance commissions / Premiums ceded NEP3 GEP 69.4% 71.6% 72.0% 71,7% 75,4% 790 831 813 34.2%2 34.2% 34.8% 35.3% +4.4% +7.7% 31.5% NEP3 408 426 €m 2011 2012 2013 H1 2013 H1 2014 2011 2012 2013 H1 2013 H1 2014 Growth Growth * * at constant FX and perimeter Reinsurance
Slide 11: Net combined ratio improving
Net combined ratio improving Net combined ratio evolution 80.2% 82.5% 82.6% (4.8 ppts) 77.8% 26.9% 28.7%1 26.5%1 26.9% 53.3% 53.8% 56.2% 50.9% 2012 2013 H1 2013 H1 2014 Net cost ratio Net loss ratio Net combined ratio in line the guidance 1 Excluding relocation costs : €8.3m in 2013, €7.9m in H1 201
Slide 12: Investment income
Investment income Investment portfolio 1 Loans, Deposits Equities & Other financials 8% 21% Improved economic yield Total € 2.35bn1 Bonds 72% €m 2012 2013 H1 2013 H1 2014 Income from investment portfolio2 47.6 68.6 52.5 21.0 Investment management costs (7.7) (7.0) (5.0) (3.4) Other (2.9) 5.9 3.2 4.7
Slide 13: Increase in RoATE
Increase in RoATE Changes in Equity Return on Average Tangible Equity (RoATE) Average Tangible 1,211 1,441 1,526 1,481 Equity €m €m RoATE 1,793 (227) 29 8 (6) 1,668 10.0% 70 8.6% 8.4% 5.3% Total IFRS Share prem. Net income Revaluation Currency Other variations Total IFRS Equity Distrib. impact reser
Slide 14: Annexes
Annexes
Slide 15: Key Figures for H1 2014
Key Figures for H1 2014 % Income statement items - in €m H1 2013 H1 2014 % like-for-like 1 Consolidated revenues 726.1 723.6 (0.3)% +1.8% of which earned premiums 569.2 564.8 (0.8)% +1.7% Underwriting income after reinsurance 59.8 87.8 +46.8% 2 Investment income net of expenses and excluding restate
Slide 16: Overview of net combined ratio calculations
Overview of net combined ratio calculations Adjusted Net Earned Premiums Adjusted net operating expenses €m H1-2013 H1-2014 €m H1-2013 H1-2014 A Gross Earned Premiums 569 565 Total operating expenses excl. relocation costs1 340 341 Ceded premiums (161) (139) D Net Earned Premiums 408 426 Factoring r
Slide 17: Investor relations
Investor relations Shareholder structure1 Calendar Next Event Date Q3 2014 Results October 29th, 2014 Natixis 41.35% IR Contacts Public 58.65% Nicolas ANDRIOPOULOS Head of Reinsurance and Financial Communication Cécile COMBEAU Investor Relations Numbers of Shares & Voting Rights1 +33 (0)1 49 02 22 9