FY-2018 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 11 TH, 2019

Transcription

1 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY TH, 209

2 FY-208 Results: Net income at 22.3m and 00% pay-out FY-208 HIGHLIGHTS FY-208 RESULTS CAPITAL MANAGEMENT KEY TAKE-AWAYS & OUTLOOK APPENDICES 2 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

3 PART FY-208 HIGHLIGHTS

4 Coface reports 22.3m net income, reflecting strong underwriting discipline in a riskier economic environment Turnover reached,384.7m y-t-d, up 4.6% at constant FX and perimeter Q4-208 up 6.3% y-o-y and 4.0% excl. one-offs Trade Credit insurance growing at 5.7% at constant FX Insured turnover and client retention at record level. FY 208 net loss ratio down by (6.2) ppts. at 45.%; Net combined ratio at 79.6% Q4-208 net loss ratio at 45.5%, thanks to favourable past claims management and disciplined underwriting FY 208 net cost ratio down by (0.7) ppt. at 34.5% vs. 35.2% in 207, reflecting tight cost controls while sustaining investments Net combined ratio at 8.4% for Q4-208 Net income (group share) at 22.3m, of which 24.m in Q4-208 Earning per share reaches record m YoY one-off impacts 4 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

5 Solvency ratio stands at 69% ; 00% payout proposed RoATE stands at 7.7% for the year and 8.0% 2 excluding non-recurring items Estimated solvency ratio above target range at c. 69% Increased solvency ratio driven by operating performance and continued model optimization Quota share reinsurance cession maintained at 26% 5m additional share buyback launched in October 208 completed in January 209 Standard formula evolution now expected to apply in 2020 Coface is still targeting to apply for Partial Internal Model in the summer 209. Begun discussions with regulator Active capital management to continue, in line with Fit to Win targets: Proposed pay-out of 00% of the year's results of which at least 60% as a dividend 3 This estimated solvency ratio constitutes a preliminary calculation made according to Coface s interpretation of Solvency II regulations. The result of the definitive calculation may differ from the preliminary calculation. The estimated solvency ratio is not audited. 2 Non-recurring items amounted to (3.8)m and mainly including 0.6m of restructuring charges partially offset by reversals of provisions 7.5m. 3 The proposed distribution is subject to approval by the general shareholders meeting on 6 May FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

6 Fit to Win : The right strategy as world economy becomes more volatile Delivering on key metrics KPIs are making progress against targets Continuing to improve capital management Disciplined underwriting policy Investments more than financed by cost savings Solvency ratio above upper end of target range 50% 64% 69%2 FY 6 FY 7 FY 8 RoATE (in %) Revenue Growth (in %) 2.0% 4.3% V% V% ex. FX,385 37,358,355 Emerging Mature * FY 6 FY 7 FY 8 FY 6 FY 7 FY 8 Loss Ratio (in %) Cost ratio (in %) ** Returning capital - Proposed pay-out of 00% - At least 60% as a dividend* 209: Continuing to focus on execution Disciplined underwriting actions as economy slows down Driving differentiated growth * f Total dividend (EURm) Buyback Buyback (additionnal) End-207 final solvency ratio stands at 64% (based on the interpretation by Coface of Solvency II and integrating a stricter estimation for Factoring SCR to anticipate regulatory changes). Not audited. 2 This estimated solvency ratio constitutes a preliminary calculation made according to Coface s interpretation of Solvency II regulations. The result of the definitive calculation may differ from the preliminary calculation. The estimated solvency ratio is not audited. It includes the impact of the stricter estimation for Factoring SCR. * The proposed distribution is subject to approval by the general shareholders meeting on 6 May 209. FY 6 FY 7 FY 8 FY 6 FY 7 FY 8 * Ex. SEGM & one-off items ** Ex. SEGM (excluding State Export Guarantees Management): 53.4m revenue in FY-206 and 0.6m remainder revenue booked in FY-207. Coface ceded this activity as from January st, 207. Figures impacted by this activity have been restated so as to be comparable. Progressing Partial Internal Model 6 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

7 PART 2 FY-208 RESULTS

8 Turnover growth at 4.6% driven by credit insurance premiums In m 2.2% 4.6%,355,385 Total revenue up 4.6% vs. 207 at constant FX and perimeter; Q4-208 is up 6.3% y-o-y (+4.0% excl. one-offs) Trade credit insurance growing at 5.7% at constant FX Gross Earned Premiums (GEP),0,43 Growth driven by record client activity (volume effect) and retention. Pricing remains under control Insurance related fees Other revenue FY-207 FY-208 Other revenue 2 down by (3.9)% vs. 207 at constant FX, driven by Factoring Fees / GEP ratio 2.0%.9% Fees up by 3.% at constant FX FY-207 FY-208 Including Bonding and Single Risk 2 Other revenue includes Factoring and Services V% V% ex. FX 8 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

9 Revenue growth driven by mature markets recovery and emerging markets improved performance Western Europe Northern Europe Central Europe Mediterranean & Africa.%.6% (0.3)% (0.2)% 4.8% 6.% 6.4% 8.2% FY-7 FY-8 FY-7 FY-8 FY-7 FY-8 FY-7 FY-8 Growth driven by client activity and lower premium refunds Insurance revenues growing at +.6% ; Lower factoring Growing portfolio while monitoring risk tightly (Poland) Steady portfolio growth and higher level of client activity North America Asia Pacific Latin America 3.8% 8.3% (.5)% 2.7% (5.5)%.9% FY-7 FY-8 Stabilised portfolio; Higher revenues driven by Single Risks and clients activity FY-7 FY-8 Growing credit insurance and lower Single Risks FY-7 FY-8 Selective growth in a volatile environment through some large global contracts V% V% ex. FX Total revenue by region, in m 9 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

10 High volume effect and record high retention New production FY-5 FY-6 FY-7 FY-8 New business slowly recovering, reflecting selective growth strategy Q4-208 slightly above Q4-207 after slow start of the year Retention rate 9.% 89.7% 87.9% 88.0% FY-5 FY-6 FY-7 FY-8 Record/high / High retention in in most regions Price effect (2.5)% (.7)% (.5)% (.4)% Controlled price decrease Driving repricing of risky markets FY-5 FY-6 FY-7 FY-8 Volume effect 6.% 4.9% 2.5% 0.6% FY-5 FY-6 FY-7 FY-8 Client activity remains high in all markets Client activity still high in all markets confirming previous quarters trends Portfolio as of December 3 st 208; and at constant FX and perimeter. New production: in m 0 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

11 Gross loss ratio at 45.3%, stabilizing in a riskier environment Loss ratio before reinsurance and including claims handling expenses, in % * 46.3* Good claims performance (past and new) in a riskier economic environment Q4-208 gross loss ratio benefiting from FX movement (-.0%) FY-207 FY-208 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 * excl. FX Loss ratio before reinsurance and excluding claims handling expenses, in % Unchanged reserving policy Current underwriting year above historical average due to roll over of past claim and end of year large cases, particularly in Western Europe 72.5 (27.2) (2.4) (9.0) (25.) (34.0) Current underwriting year All underwriting years Prior underwriting years FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

12 Improving mature market performance, while controlling emerging markets volatility Loss ratio before reinsurance, including claims handling expenses in % 9%* 7%* 5%* Group North America Asia Pacific Latin America ** ** FY-5 FY-6 FY-7 FY-8 FY-5 FY-6 FY-7 FY-8 FY-5 FY-6 FY-7 FY-8 FY-5 FY-6 FY-7 FY-8 **43.8% excl. FX **5.8% excl. FX 0%* 20%* Central Europe Western Europe Northern Europe Mediterranean & Africa 22%* 27%* ** FY-5 FY-6 FY-7 FY-8 FY-5 FY-6 FY-7 FY-8 FY-5 FY-6 FY-7 FY-8 FY-5 FY-6 FY-7 FY-8 **48.9% excl. FX * % of Total revenue by region 2 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

13 Cost ratio improving while investing in key processes ex. one-off in Italy: In m 2.0% 4.4%.% 3.5% 4.3% 5.5% External acquisition costs (commissions) Internal costs 6.0m Italy one-off * Q4-7 Q-8 Q2-8 Q3-8 Q4-8 V% V% ex. FX FY-7 FY-8 Gross cost ratio 35.7% 34.8% 35.7% 37.0% 36.0% Internal overheads Achieved 39m Fit to Win savings Continue to invest ( 8m) into growth, risk management, compliance and process transformation 36.5% (.)% +0.0% +0.5% 35.9% FY-208 gross cost ratio at 35.9%; 36.0% in Q M-207 Earned premiums Internal overheads External acquisition cost 2M FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

14 Reinsurance : second quota share successfully renewed Cession rate now shows full impact of higher cession contracts Second 3% quota share successfully renewed for 2 years. Overall, slightly better terms secured 2M-7 2M-8 Gross earned premiums,09.7,42.6 Net earned premiums Premium cession rate 27.2% 28.7% Gross claims expenses (570.9) (504.5) Net claims expenses (45.) (367.8) Claims cession rate 27.3% 27.% 2M-7 2M-8 V% Underwriting income before reinsurance % Reinsurance result (26.0) (62.) N.S Underwriting income after reinsurance % 4 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

15 Net combined ratio at 79.6% In % (7.0) ppts. Net combined ratio Net cost ratio Net combined ratio improved to 79.6% (vs. 86.6% in 207) due to lower losses and cost discipline Net loss ratio Cost ratio down 0.7ppt as investments are fully financed by cost savings FY-208 net loss ratio down by (6.2) ppts. 2M-207 2M-208 In % Net combined ratio ppts Q4-208 loss ratio remains under control in a riskier environment (47.6% excl. FX) Net cost ratio Net loss ratio Q4-7 Q-8 Q2-8 Q3-8 Q4-8 Q4-208 combined ratio is below through the cycle target (~83%) Q4-208 net loss ratio at 45.5% (47.6% excl. FX) after 48.5% (44.4% excl. FX) 5 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

16 Financial portfolio: stabilised yield and lower realized gains Loans, Deposit & other financial 9% Equities 7% Investment Real Estate 8% Total 2.7bn Bonds 66% m FY-207 FY-208 Income from investment portfolio without gains on sales Gains on sales and impairment / impairment's release FX effect Other (2.5) (2.5) Net investment income Accounting yield on average investment portfolio Accounting yield average investment portfolio excl. gains on sales & depreciations / release depreciations %.7% 3.4%.5% Stable portfolio mix Excludes investments in non-consolidated subsidiaries 2 Excludes investments in non-consolidated subsidiaries, FX and investment management costs 3 End-207 final ratio stands at.5%. The ratio above of.4% is excluding the depreciations / release depreciations Stable accounting yield Lower realized gains due to market conditions 6 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

17 FY-208 net income at 22.3m of which 24.m in Q4-208 Income statement items - in m 2M-7 2M-8 Current operating income Fit to Win investments & restructuring expenses (0.4) (5.7) Other operating income and expenses (0.2) 0.7 Operating income at 203.9m is back to historical highs Investments & restructuring expenses at (5.7)m Tax rate at 34.4% (32.8% in Q4-208) Operating income Finance costs (8.) (7.7) Share in net income of associates Earnings per share (EPS): 0.79 Income tax (55.7) (64.) Tax rate 4% 34% Non-controlling interests 0.2 (0.4) Net income (group share) Proposed pay-out of 00% of the year's results of which at least 60% as a dividend* * the proposed distribution is subject to approval by the general shareholders meeting on 6 May FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

18 RoATE stands at 7.7%, up 2.4ppts on stable equity base Change in equity In m,802.6 (52.9) 22.3 (8.0) (47.8),806.2 IFRS Equity attributable to owners of the parent Dec 3, 207 Distribution to shareholders Net income impact Revaluation reserve (financial instruments AFS) Treasury shares, currency translation differences & others IFRS Equity attributable to owners of the parent Dec 3, 208 Return on average tangible equity (RoATE) 5.3% 2. ppts. (0.2) ppts. 0.4 ppts. 7.7% 8.0% RoATE Technical result Financial result Tax and others RoATE RoATE excl. non-recurring Non-recurring items amounted to (3.8)m and mainly including 0.6m of restructuring charges partially offset by reversals of provisions 7.5m 8 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

19 PART 3 CAPITAL MANAGEMENT

20 Solid balance sheet 208 simplified balance sheet IFRS 9 Financial instruments Coface meets criteria to apply temporary exemption of IFRS 9 for its insurance business, until Jan 2022 m Goodwill & intangible assets Insurance investments Other assets Shareholders equity Financing liabilities (including hybrid debt) Gross insurance reserves Other liabilities IFRS 9 implemented for factoring entities (in Germany & Poland) as of Jan 208, with a limited impact of (0.7)m on the factoring receivables IFRS 6 Lease contracts New standard applies from st January m estimated impact on opening balance sheet (209) IFRS 7 Insurance contracts Project progressing as planned Financial strength affirmed Factoring assets Factoring liabilities Fitch: AA-, stable outlook rating affirmed on August 29 th, 208 Assets Liabilities Moody s: A2, stable outlook credit opinion updated June 8 th, FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

21 Robust solvency over time FY-208 estimated Solvency ratio in target range Low sensitivity to market shocks market sensitivity tested through instantenous shocks 64% 3.7 ppts. (0.6) ppts..4 ppts. 69% 2 FY % 2 60% 3/2/208 SCR cover (Std) +00 bps Interest rates 69% 64% 40% 20% +00 bps Spread - 25% Stock market 65% 66% 3/2/207 Insurance SCR variation Factoring SCR variation Own funds variation 3/2/208 Coface comfort scale Solvency requirement respected in crisis scenarios Estimated Solvency above the upper range of the comfort scale (40% - 60%) Insurance SCR down as lower market and counterparty risk offset slightly higher underwriting risk Stable factoring required capital 2008 crisis equivalent /20 crisis equivalent % +00 bps on credit and +50 bps for OECD government debt 2 Based on the level of loss ratio observed during 2008 crisis 3 Based on the level of loss ratio corresponding to 95% quantile 56% End-207 final solvency ratio stands at 64% (based on the interpretation by Coface of Solvency II and integrating a stricter estimation for Factoring SCR to anticipate regulatory changes). Not audited 2 The estimated Solvency ratio disclosed in this presentation is a preliminary calculation based on the interpretation by Coface of Solvency II ; final calculation could result in a different Solvency ratio. The estimated Solvency ratio is not audited. It includes the impact of the stricter estimation for Factoring SCR 2 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

22 Solvency required capital at 3 December 208 Standard model 69% Operational risk - Client, product and business practices - Employment practices and workplace safety, etc. m 2, Counterparty risk - Fixed income default risk - Reinsurance default risk, etc., (209) (2) ,238 25,639 Market risk - Interest rate risk - Spread risk (corporate & sovereign) - Equity risk, etc. 920 SCR components before diversification and tax adjustments 987 Diversification Tax adjustments Total SCR as of Factoring required capital as of Total required capital as of Eligible own funds Tier 3 Tier 2 Tier Non-life underwriting risk - Reserve risk (risk of underestimated technical reserves) - Premium risk (risk related to pricing determination) - Extreme scenarios leading to unexpected losses The estimated Solvency ratio disclosed in this presentation is a preliminary calculation based on Coface s interpretation of Solvency II ; final calculation could result in a different Solvency ratio. The estimated Solvency ratio is not audited. Total solvency ratio computed by comparing the sum of SCR and Factoring required capital to the total available own funds eligible under Solvency II SCR calculation year time horizon; measures maximum losses in own funds with a 99.5% confidence level; Standard Formula based on unified parameters (standard deviation, correlations, etc.) Factoring required capital 9.875% x RWA (RWA computed based on standard methodology) 22 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

23 PART 4 KEY TAKE-AWAYS & OUTLOOK

24 Key take-aways & outlook Solid results in 208 demonstrate Coface s ability to perform in a riskier environment Improved underwriting infrastructure allowed to control higher volatility (Argentina, Turkey) Net combined ratio at 79.6% driven by a net loss ratio of 45.% Operating profit at 203.9m; Annualised RoATE stands at 7.7% (8.0% excluding non-recurring items) Strong balance sheet allows for active capital management Solvency at ~69% 2, above the target range Have begun Partial Internal Model discussions with French regulator. Standard formula reform expected in 2020 Affirming 00% payout ratio for 208 results 209 outlook: Fit to Win is the right strategy in a more volatile economy Similar underwriting discipline will continue in 209 in a more volatile market (Chinese slowdown, Brexit, shutdown, trade wars) Coface will continue to invest on long term value creating projects: 25m in 209 including implementing new accounting standards Coface continues to target application submission for internal model in Summer 209 Confirming ~83% combined ratio target across the cycle Non-recurring items amounted to (3.8)m and mainly including 0.6m of restructuring charges partially offset by reversals of provisions 7.5m. 2 This estimated solvency ratio constitutes a preliminary calculation made according to Coface s interpretation of Solvency II regulations. The result of the definitive calculation may differ from the preliminary calculation. The estimated solvency ratio is not audited. 24 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

25 PART 5 APPENDICES

26 Key figures (/2) Quarterly and cumulated figures Income statement items in m Quarterly figures Q-7 Q2-7 Q3-7 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 % % ex. FX Gross earned premiums % +8.4% Services revenue (3.)% (2.9)% REVENUE % +6.3% UNDERWRITING INCOME(LOSS) AFTER REINSURANCE Investment income, net of management expenses x0.8 x x0.8 x0.8 CURRENT OPERATING INCOME x0.8 x0.8 Other operating income / expenses (.0) 0.0 (.3).7 (2.3).5 (.0) (3.2) N.S N.S OPERATING INCOME x0.7 x0.7 NET INCOME x0.9 x0.8 Income tax rate 52.0% 47.% 27.3% 47.2% 35.3% 26.4% 39.7% 32.8% (4.4) ppts. Income statement items in m Cumulated figures Q-7 H-7 9M-7 FY-7 Q-8 H-8 9M-8 FY-8 % % ex. FX Gross earned premiums , , % +5.7% Services revenue (.3)% (0.)% REVENUE ,02.2, ,035.7, % +4.6% UNDERWRITING INCOME(LOSS) AFTER REINSURANCE Investment income, net of management expenses 26 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY x.6 x (7.5)% +0.3% CURRENT OPERATING INCOME x.3 x.4 Other operating income / expenses (.0) (0.9) (2.3) (0.6) (2.3) (0.8) (.8) (5.0) N.S N.S OPERATING INCOME x.3 x.4 NET INCOME x.5 x.5 Income tax rate 52.0% 49.0% 36.9% 40.8% 35.3% 3.7% 34.8% 34.4% (6.4) ppts.

27 Key figures (2/2) Revenue by region: quarterly and cumulated figures Total revenue by quarter - in m Q-7 Q2-7 Q3-7 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 Northern Europe Western Europe Central Europe Mediterranean & Africa North America Latin America Asia Pacific Total revenue V% ex. FX +0.6% +.9% (.)% +7.9% +6.3% +54.9% +9.4% +6.3% Total revenue cumulated - in m Q-7 H-7 9M-7 FY-7 Q-8 H-8 9M-8 FY-8 Northern Europe Western Europe Central & Eastern Europe Mediterranean & Africa North America Latin America Asia Pacific V% ex. FX Total Group ,02.2, ,035.7, % (0.2)% +.6% +6.% +8.2% +8.3% +.9% +2.7% DOWNLOAD OUR.XLS FINANCIAL SUPPLEMENT 27 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

28 Exposure in EM maintained at a stable share Total exposure up 5.4% vs. end of the year, in line with client activity increase Evolution of total exposure by country of debtor In bn FY-208 total exposure Top 0 countries vs. others In % Dec-205 Dec-206 Dec-207 Dec % 79% 22% 2% % 2% 53 79% 2% 540 Advanced Emerging 36.0% 2.% 2.3% 2.7% 4.6% 3.2% 4.4% 8.6% 5.4%.6% 9.2% Germany France Italy USA Spain UK Netherlands China Poland Japan Others 0.0% 6.0% 20.% FY-208 total exposure by region 8.9% 3.4% 2.3% 20.3% Western Europe Northern Europe Asia Pacific Mediterranean & Africa North America Latin America Central Europe Insured receivables : theoretical maximum exposure under the group s insurance policies : 540.5bn as of 3/2/208 vs. 52.6bn as of 3/2/207 FY-208 total exposure by debtors trade sector.8%.0% Minerals, chemistry, oil, plastics, pharma and glass Agriculture, meat, agri-food and wine 3.7% 3.0% Construction 4.3% Electrical equipment, electronics, IT and telecom 3.2% 5.7% 8.4% Unspecialised trades 4.8% Metals Car & bicycles, other vehicles and transportation Mechanical and measurement Textiles, leather and apparel.% Services to businesses and individuals 7.6% Others 9.5% 0.0% Paper, packing and printing Public services Financial serivces Wood and furniture 28 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

29 Loss ratio for the quarter at 45.3% (46.3% excl. FX impact) Loss ratio before reinsurance, including claims handling expenses in % 9%* 7%* 5%* Group North America Asia Pacific Latin America *** ** ** Q4-7 Q-8 Q2-8 Q3-8 Q4-8 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 ** 46.3% excl. FX ** 37.4% excl. FX *** 70.0% excl. FX 0%* 20%* Central Europe Western Europe Northern Europe Mediterranean & Africa 22%* 27%* ** Q4-7 Q-8 Q2-8 Q3-8 Q4-8 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 Q4-7 Q-8 Q2-8 Q3-8 Q4-8 ** 44.% excl. FX * % of Total revenue by region 29 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

30 Combined ratio calculation Combined ratio before reinsurance loss ratio before reinsurance (B) (C) + cost ratio before reinsurance (A) (A) Combined ratio after reinsurance loss ratio after reinsurance (E) (F) + cost ratio after reinsurance (D) (D) In k FY-207 FY-208 Earned Premiums Gross earned premiums [A],09,697,42,608 Ceded premiums (30,545) (327,54) Net earned premiums [D] 808,52 85,067 Claims expenses Claims expenses [B] (570,863) (504,509) Ceded claims 2,655 24,537 Change in claims provisions 43,53 2,2 Net claims expenses [E] (45,055) (367,762) Ratios FY-207 FY-208 Loss ratio before reinsurance 5.4% 44.2% Loss ratio after reinsurance 5.4% 45.% Cost ratio before reinsurance 36.5% 35.9% Cost ratio after reinsurance 35.2% 34.5% Combined ratio before reinsurance 87.9% 80.0% Combined ratio after reinsurance 86.6% 79.6% Technical expenses Operating expenses (653,864) (658,29) Employee profit sharing sharing and incentive plans 4,662 6,29 Other revenue 244,66 242,27 Operating expenses, net of revenues from other services before reinsurance [C] (404,542) (409,872) Commissions received from reinsurers 9,767 28,666 Operating expenses, net of revenues from other services after reinsurance [F] (284,775) (28,207) Excluding 0.6m remainder revenue for SEGM booked in Q4-207 DOWNLOAD OUR.XLS FINANCIAL SUPPLEMENT 30 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

31 Q4-8 results vs. consensus in M # of replies Consensus Q4-208 Spread Comment Total revenue Revenue increase driven by mature markets, Gross Earned Premiums high retention and higher client activity Net Earned Premiums NEP/GEP % 72.0% +.2 ppt Higher cession goes through the P&L Net underwriting income Better loss ratio Net Investment Income Low realized gains Current operating income Better loss ratio Other operating & Restructuring charges (Fit to Win) 5 (4) (3) + In line with guidance Operating Income Better loss ratio Net income Net Loss Ratio (% ) % 45.5% (3.5) ppts 47.6% excluding FX impact Net Cost Ratio (% ) % 35.9% +2.3 ppts Continuing investments Net Combined Ratio (%) % 8.4% (.2) ppts Better loss offsets higher costs 3 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

32 Management team CFO & Risk Director Carine Pichon 5+ years of experience in credit insurance Working for Coface since 200 Commercial Director Nicolas Garcia 20 years of experience in credit insurance Working for Coface since 203 GROUP CENTRAL FUNCTIONS CEO Xavier Durand 30+ years of international experience in regulated financial services Working for Coface since 206 General Secretary Carole Lytton 30+ years of experience in credit insurance Working for Coface since 983 Chief Human Resources Officer Pierre Bevierre 25+ years of experience in Human Resources Working for Coface since 207 REGIONAL FUNCTIONS Strategy & Business Development Director Thibault Surer 25+ years of experience in financial services Working for Coface since 206 Business Technology Director Keyvan Shamsa 25+ years of experience in financial services Working for Coface since 208 Underwriting Director Cyrille Charbonnel 25+ years of experience in credit insurance Working for Coface since 20 Transformation Office Director Nicolas de Buttet 5+ years of experience in credit insurance Working for Coface since 202 Western Europe CEO Antonio Marchitelli 20 years of experience in insurance Working for Coface since 203 Northern Europe CEO Katarzyna Kompowska 25 years of experience in credit insurance & related services Working for Coface since 990 Mediterranean & Africa CEO Cécile Paillard 5+ years of experience in insurance Working for Coface since 207 Central Europe CEO Declan Daly 25 years of experience in financial services Working for Coface since 207 North America CEO Fredrik Murer 20+ years of experience in insurance & political risk underwriting Working for Coface since 206 Asia Pacific CEO Bhupesh Gupta 25 years of international experience in credit, origination and risk Working for Coface since 206 Latin America CEO Carmina Abad Sanchez 30+ years of experience in the insurance industry Working for Coface since FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

33 Corporate governance Board of Directors Chairman François RIAHI CEO of Natixis Non independent members Daniel KARYOTIS Jean ARONDEL Jean-Paul DUMORTIER BPCE BPCE BPCE Anne SALLE MONGAUZE Isabelle RODNEY BPCE BPCE Independent members Sharon MACBEATH Olivier ZARROUATI Eric HÉMAR Tarkett Thélème SASU ID Logistics Nathalie LOMON Isabelle LAFORGUE Ingenico Committees AUDIT & ACOUNTS COMMITTEE 3 members among which 2 independents Independent chairman RISK COMMITTEE 3 members among which independent Independent chairman NOMINATION & COMPENSATION COMMITTEE 3 members among which 2 independents Independent chairman 33 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

34 Financial Calendar & investor relations contacts Next Event Calendar Date Q-209 Results April 24 th, 209 after market close Annual shareholders meeting May 6 th, 209 H-209 Results July 25 th, 209 after market close 9M-209 Results Oct. 23 rd, 209 after market close Coface is scheduled to attend the following investor conferences Next Event Portzamparc Conference, Paris KBW Conference, London Date April 0 th, 209 May 4 th, 209 Date Liquidity Agreement Own shares transactions LTIP Buy-back (cancellation) TOTAL (in shares) Note: After the Board s decision of 24 October 208, 3,348,97 were cancelled on 9 December 208. The new Company s share capital amount to 307,798,522, divided into 53,899,26 shares ( 2 nominal value). IR Contacts: investors@coface.com Thomas JACQUET Head of Investor Relations & Rating Agencies thomas.jacquet@coface.com +33 (0) Benoit CHASTEL Investor Relations Officer benoit.chastel@coface.com +33 (0) Own shares transactions % Total of # Shares Voting rights 3/2/208 26, ,868,708,735 2,600,240.69% 5,299,02 34 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209

35 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 3 December 208. This presentation includes only summary information and does not purport to be comprehensive. The Coface Group takes no responsibility for the use of these materials by any person. The information contained in this presentation has not been subject to independent verification. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Coface Group, its affiliates or its advisors, nor any representatives of such persons, shall have any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document or any other information or material discussed. Participants should read the financial statements for the period ending 3 December 208 and complete this information with the Registration Document for the year 207. The Registration Document for 207 was registered by the Autorité des marchés financiers ( AMF ) on 5 April 208 under the number D These documents all together present a detailed description of the Coface Group, its business, strategy, financial condition, results of operations and risk factors. This presentation contains certain forward-looking statements. Such forward looking statements in this presentation are for illustrative purposes only. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forwardlooking statements are based on Coface Group s current beliefs, assumptions and expectations of its future performance, taking into account all information currently available. The Coface Group is under no obligation and does not undertake to provide updates of these forward-looking statements and information to reflect events that occur or circumstances that arise after the date of this document. Forward-looking information and statements are not guarantees of future performance and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Coface Group. Actual results could differ materially from those expressed in, or implied or projected by, forward-looking information and statements. These risks and uncertainties include those discussed or identified under Chapter 5 Main risk factors and their management within the Group (Chapitre 5 Principaux facteurs de risque et leur gestion au seins du Groupe ) in the Registration Document. This presentation contains certain information that has not been prepared in accordance with International Financial Reporting Standards ( IFRS ). This information has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under IFRS. More comprehensive information about the Coface Group may be obtained on its Internet website ( This document does not constitute an offer to sell, or a solicitation of an offer to buy COFACE SA securities in any jurisdiction. 35 FY-208 RESULTS PRESENTATION TO FINANCIAL ANALYSTS FEBRUARY 209