results to 30 september 2017 - cerved company 9m … · october 27th, 2017 cerved information...

0 73

132

0 128 142

109 189 255

191 191 191

0 103 188

16 159 189

221 221 221

92 188 210

October 27th, 2017

Cerved Information Solutions S.p.A.

Results to 30 September 2017

1

Disclaimer

This presentation and any materials distributed in connection herewith (together, the “Presentation”) do not constitute or form a part of, and should not be construed as, an offer for sale or subscription of or solicitation of any offer to purchase or subscribe for any securities, and neither this Presentation nor anything contained herein shall form the basis of, or be relied upon in connection with, or act as an inducement to enter into, any contract or commitment whatsoever. The information contained in this Presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, reasonableness or correctness of the information or opinions contained herein. None of Cerved Information Solutions S.p.A., its subsidiaries or any of their respective employees, advisers, representatives or affiliates shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this Presentation. The information contained in this Presentation is provided as at the date of this Presentation and is subject to change without notice.

Statements made in this Presentation may include forward-looking statements. These statements may be identified by the fact that they use words such as “anticipate”, “estimate”, “should”, “expect”, “guidance”, “project”, “intend”, “plan”, “believe”, and/or other words and terms of similar meaning in connection with, among other things, any discussion of results of operations, financial condition, liquidity, prospects, growth, strategies or developments in the industry in which we operate. Such statements are based on management’s current intentions, expectations or beliefs and involve inherent risks, assumptions and uncertainties, including factors that could delay, divert or change any of them. Forward-looking statements contained in this Presentation regarding trends or current activities should not be taken as a representation that such trends or activities will continue in the future. Actual outcomes, results and other future events may differ materially from those expressed or implied by the statements contained herein. Such differences may adversely affect the outcome and financial effects of the plans and events described herein and may result from, among other things, changes in economic, business, competitive, technological, strategic or regulatory factors and other factors affecting the business and operations of the company. Neither Cerved Information Solutions S.p.A. nor any of its affiliates is under any obligation, and each such entity expressly disclaims any such obligation, to update, revise or amend any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this Presentation. It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of full-year results.

2

Today’s Presenters

Marco Nespolo – Chief Executive Officer

Giovanni Sartor – Chief Financial Officer

8 years at Cerved

8 years of TMT industry experience

Prior experience: Seves Group, Nylstar (RP-Snia JV), Eni, Heinz

Education: MBA from Eni University; Statistics and Economics degree from University of Padua

Pietro Masera – Head of Corporate Development & IR

4 years at Cerved


Prior experience: CVC, Deutsche Bank, Bankers Trust, UBS, SEAT

Education: degree in Economics and Business Administration from University of Bergamo

9 years at Cerved


Prior experience: Bain Capital, Bain & Company, Citibank

Education: degree in Business Administration from Bocconi University of Milan

3

Table of Contents

Highlights 1

First Nine-Months Financial Review 2

Appendices 3

4

Executive Summary

Macro Highlights

Italian macro improving with upgraded GPD forecasts for 2017-18

Continuing progress on systemic bank rescues and NPL deals

9M’17

Financial Results

Revenues +6.7% vs 9M’16, +5.3% organic

Adjusted EBITDA1) +3.8% vs 9M’16, +3.3% organic

Operating Cash Flow2) €99.0m in 9M’17, +3.8% vs 9M’16

Adjusted Net Income €68.4m in 9M’17, +10.0% vs 9M’16

Leverage 2.7x LTM Adjusted EBITDA

Other

Setting up Juliet platform & on-boarding €13bn NPLs from Atlante II

Expected closing of BP Bari NPL servicing platform in December

Kicked-off assessment for merger of Cerved Group into Cerved

Information Solutions to optimise the structure of the group

Note: 1) Adjusted EBITDA excludes provisions of €1.0m related to the Long Term Incentive Plan in 9M’17 2) Based on Adjusted EBITDA

5

116 126 136 144

95 99

2013 2014 2015 2016 9M'16 9M'17

152 160 171 180

127 132

2013 2014 2015 2016 9M'16 9M'17

313 331 353

377

271 289

2013 2014 2015 2016 9M'16 9M'17

+6.7%/ +5.3%

Consistent Growth and Cash Flow Generation

Note: 1) Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan in FY'16, €0.3m in 9M’16 and €1.0m in 9M'17 2) Based on Adjusted EBITDA; 2013 pro-forma for business disruption arising from adoption of new ERP systems in September 2013

Consistent Growth Adjusted EBITDA Growth1) High Cash Flows

Revenue (€m) Adjusted EBITDA (€m)1) Operating Cash Flow (€m)2)

Consistent Revenue, Adjusted EBITDA1) and Cash Flow growth

% / % Total Growth % / Organic Growth %

+6.3% / +3.2%

CAGR 2013-16

+5.9% / +4.5%

CAGR 2013-16

+7.5%

CAGR 2013-16

+3.8% / +3.3%

+3.8%

6

Macro Highlights

Note: figures and estimates are subject to periodical revisions

Key Economic Indicators

Cerved Proprietary

Data

IMF revised its GDP

growth forecasts for 2017

to +1.5% (+1.1% for 2018)

Unemployment declined

further, reaching 11.2%

in Q2’17

New bank lending to

corporates declined

9.2% YTD to August ‘17;

consumer lending

increased 0.5%

Late paying companies

and number of

bankruptcies in Q2’17

confirm the improving

situation

Default rates on loans

increased at a much

lower pace in Q2’17

(3.3%) versus last year

(3.8%)

Key highlights

Key highlights

Source: Bank of Italy

12,4% 12,7% 11,6% 11,8% 11,2%

8,6%

8,1% 8,0% 7,2%

6,6%

Italian unemployment Italian GDP New lending

% of companies paying over 60 days late versus contractual

terms

Number of proceedings (seasonally

adjusted) and growth rates as change

versus same quarter of previous year

Growth rate compared to the

previous quarter

New lending volumes to

corporates in € billions (quarterly)

Late paying companies Bankruptcies NPLs

Default rate on outstanding loans; Cerved estimates on

Bank of Italy data

Source: Osservatorio Cerved

50

100

150

200

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

13.3% 9.7% (10.3%)

(14.1%)

(15.3%)

Source: Osservatorio Cerved

3,5% 3,7% 3,7% 3,8%

3,3%

Source: Osservatorio Cerved, Bank of Italy

Q4

(0.1)%

Q4

0.1%

Q4

0.3% Q4

0.4%

Q2

0.3%

Source: ISTAT, OECD

YoY +0.8%

YoY -0.4%

YoY -1.7%

Source: ISTAT

-50%

YoY +1.0%

Unemployment as % of total working

population

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2015

Q1 Q2 Q3 Q4

2016 ‘17

Q1 Q2

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2015

Q1 Q2 Q3 Q4

2016 ‘17

Q1 Q2

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2015

Q1 Q2 Q3 Q4

2016 ‘17

Q1 Q2 Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2015

Q1 Q2 Q3 Q4

2016 ‘17

Q1 Q2 Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2015

Q1 Q2 Q3 Q4

2016 ‘17

Q1 Q2

7

Table of Contents


Appendices 3

Highlights 1

8

Group Revenues

Revenue Bridge (9M’16 – 9M’17, €m)

Revenues (€m) and Revenue growth (%)

331,3 353,5

377,0

270,8 288,9

2014 2015 2016 9M'16 9M'17

270,8

288,9

1,8 4,6

8,3 3,5 (0,1)

Revenues

9M'16

CI - Financial

Institutions

CI -

Corporates

Credit

Management

Marketing

Solutions

Other & Conso

clearing

Revenues

9M'17

Credit Information


+6.7% / +5.3%

+6.7% / +1.6%

+6.6% / +4.1%

9

127,3

132,1 3,0 1,2

0,7

Adjusted EBITDA

9M'16

Credit

Information

Credit

Management

Marketing

Solutions

Adjusted EBITDA

9M'17

160,1 170,8 180,0

127,3 132,1

2014 2015 2016 9M'16 9M'17

Group Adjusted EBITDA1)

Adjusted EBITDA Bridge (9M’16 – 9M’17, €m)

Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)1)

48.3% 48.3%


47.0% 45.7%

47.8%

+6.7% / +5.2% +3.8% /

+3.3%

Note: 1) Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan in FY'16, €0.3m in 9M’16 and €1.0m in 9M'17

+5.4% / +3.9%

10 Note: 1) Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan in FY'16, €0.3m in 9M’16 and €1.0m in 9M'17 2) Excluding impact of €37.3 million of non-recurring financial charges related to the “Forward Start” financing agreement, not having had any cash impact in 2015

Group Operating Cash Flow and Financial Leverage

Net Debt (€m) and Net Debt/ LTM Adjusted EBITDA

Operating Cash Flow (€m) and Operating Cash Flow /Adjusted EBITDA (%)1)

144,0 126,2

136,1

95,4 99,0

2014 2015 2016 9M'16 9M'17

78.8% 79.7%

% Operating Cash Flow (as % of Adjusted EBITDA) YoY Growth % %

74.9% 74.9%

80.0%

722

488 500 523 505

2013 2014 2015 2016 9M'17

4.8x

3.0x

x Net debt/Adjusted EBITDA

2.9x2) 2.9x

+3.8%

2.7x

+7.9% +5.8%

11

53,3

75,0 84,7

59,7 67,9

2014 2015 2016 9M'16 9M'17

Note: 1) Breakdown between Corporates and Financial Institutions could be slightly different from past figures due to the reclassification of some clients within segments 2) Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan in 9M'16 and €1.0m in 9M’17

Group Divisional Performance

Credit Information Credit Management Marketing Solutions

122,0 125,4 126,6 94,0 95,8

142,7 141,7 148,1

106,4 111,0

264,7 267,1 274,7

200,4 206,7

2014 2015 2016 9M'16 9M1'17

Re

ve

nu

e

Ad

just

ed

EB

ITD

A2)

142,1 145,4 147,5

105,9 108,8

2014 2015 2016 9M'16 9M'17

11,2

19,5 24,4

16,7 17,8

2014 2015 2016 9M'16 9M'17

14,7 13,8

21,1

13,5 17,0

2014 2015 2016 9M'16 9M'17

6,8 5,9 8,2

4,7 5,4

2014 2015 2016 9M'16 9M'17

45.9% 42.7%

21.0%

26.0%

53.7% 54.4% 53.7%

Fin. Inst.

Corp.

% YoY Growth % Adjusted EBITDA margin % % CAGR

31.9%

27.9% 26.3%

52.8% 52.7%

%

28.8%

38.7%

1)

35.0%

+9.9%

14.4% CAGR ‘14-16

+47.8% 7.0%

CAGR ‘14-16

+1.9%

CAGR ‘14-16

2.8%

+19.7%

25.6% CAGR ‘14-16

+26.1% 13.9%

CAGR ‘14-16

+1.9%

CAGR ‘14-16

3.2%

12

Strong performance in the Financial

Institutions segment which grew

+3.5% in Q3 bringing YTD growth to

+1.9%

This segment generated better than

expected results in both the business

information and RE appraisals

segments

The Corporate segment grew +0.4%

in Q3 bringing YTD to +4.3%, partially

attributable to a delay the

completion of specific projects with

large accounts

YTD EBITDA growth of +2.8% despite

a soft Q3, leading to an Adjusted

EBITDA margin in line with previous

year (52.7% in 2017 vs 52.8% in

2016)

Beyond lower than expected

Revenues in the Corporate

segment, Q3 Adjusted EBITDA

impacted by calendarisation

effect

Credit Information



CAGR 2014-2016 9M’16 vs 9M’17

Key highlights

Key highlights

122,0 125,4 126,6 94,0 95,8

142,7 141,7 148,1

106,4 111,0

264,7 267,1 274,7

200,4 206,7

2014 2015 2016 9M'16 9M'17

Financial Institutions:

1.9%

1.9% 4.3%

1.9%

Corporates:

% % YoY Growth %

1)

Note: 1) Breakdown between Corporates and Financial Institutions could be slightly different from past figures due to the reclassification of some clients within segments 2) Adjusted EBITDA excludes provisions of €0.6m related to the Long Term Incentive Plan in FY’2016, €0.3m in 9M’2016 and €0.9m in 9M’2017

142,1 145,4 147,5

105,9 108,8

2014 2015 2016 9M'16 9M'17

+2.3% +1.4%

53.7% 54.4% 53.7%

2.8%

52.8% 52.7%

+0.9% +2.8% 3.2%

13

YTD growth of +13.9% (+19.8% in

Q3) despite limited inflow of new

portfolios of NPLs

YTD growth mainly arising from the

NPL workout and Legal Services

segments, as well as the recently

added Performing Loans segment

(partnership with Barclays), despite

the softer performance of the

Remarketing and Receivables

segments

Credit Management

Key highlights

Key highlights

Note: 1) Adjusted EBITDA excludes provisions of €0.1m related to the Long Term Incentive Plan in FY’2016, €0.0m in 09M’2016 and €0.1m in 9M’2017


53,3

75,0

84,7

59,7 67,9

2014 2015 2016 9M'16 9M'17

% % YoY Growth %


40.8%

+13.0%

11,2 19,5

24,2

16,7 17,8

2014 2015 2016 9M'16 9M'17

74.5%

+25.1%

21.0% 26.0%

28.8%

+7.0%

27.9% 26.3%

+13.9%

YTD growth of +7.0% (+13.3% in Q3),

improving from +4.0% in H1’17

Minor margin dilution YTD (26.3% in

2017 vs 27.9% in 2016) due to lower

margins from the partnership with

Barclays, coupled with the soft

performance of the Remarketing

segment

14

On 2 August 2017 Cerved and Quaestio S.A. entered into an industrial partnership to service NPLs in Italy, with stakes

of 49.9% for Cerved and 50.1% for Quaestio. Cerved to consolidate Newco line-by-line in virtue of reinforced

governance rights and has a call option to reach 100% ownership in 2021

Cerved and Quaestio also reached an agreement with Banca MPS to acquire the servicing platform (“Juliet”) and

a 10-year contract to service the bank’s future NPLs for a price of €52.5m

Portfolio of NPLs to be serviced by Juliet shall include i) 80% of future MPS non-performing loans originating from stock

of UTPs, expected at approx. €2bn at closing, and ii) approx. €13bn of stock of MPS NPLs to be acquired and

securitised by the Atlante II fund

Combination of future flows and stock generates an attractive growth profile of Revenues and EBITDA in the

medium term, thanks to the growth in newly formed NPLs by far outpacing the decline in the stock of NPLs

The Atlante II fund also owns approx. €5.5bn of NPLs from the Cube, Este and Berenice portfolios, of which a portion

is expected to be serviced by the Quaestio-Cerved partnership (negotiations underway)

Transaction Structure

Industrial Partnership with Quaestio and MPS to Service NPLs

Landmark industrial partnership with Quaestio to service current and future NPLs of Banca MPS and other NPLs portfolios

Illustrative AUM flows over 5 years (€bn)

1) Call option for Cerved to acquire stake of 50.1% in 2021. Cerved to consolidate NewCo line-by-line in virtue of reinforced governance rights

Cerved Quaestio SA

Juliet (Servicing platform)

Atlante II fund

Monte dei Paschi di Siena

50.1% 49.9%1)

100%

Atlante II Stock (€13bn MPS)

Platform price €52.5m

10-yr servicing contract for new NPL inflows

NewCo (partnership)

2018 2019 2020 2021 2022

MPS Future Flows Atlante II Stock Total AuM

15

The industrial partnership with Banca Popolare di Bari (“BP Bari”) closely resembles the transactions with Credito

Valtellinese (closed in April 2016) and with Monte dei Paschi di Siena (announced in August 2017)

Based on the agreement with BP Bari, Cerved will service on an exclusive basis:

the current stock of NPLs (initially approx. €600m) and 75% of future inflows

the current stock of UTPs (initialy approx. €500m) and 55% of future inflows

approx. €300m of NPLs currently managed by third parties

The agreement with BP Bari envsiages potential synergies in adjacent areas, in particularl business information,

cadastral surveys and real estate appraisals

Closing expected in Q4 and subject to customary conditions and Bank of Italy approval

Key Terms of the Transaction

Acquisition of BP Bari Servicing Platform

10-year partnership for the servicing of NPLs and UTPs announced on 19 September 2017

Servicing contract: 10-year exclusivity with BP Bari

Enterprise Value: €18.0m payable at Closing

Expected closing: during Q4 2017

Medium term financials: Revenues in the €7-8m range with an EBITDA margin of approx. 40%

Valuation multiple: approx. 6.0x EBITDA in forecasts for 2018-2020

2018 2019 2020 2021 2022

NPLs UTPs Total AuM

Illustrative AUM flows over 5 years (€bn)

Total AuMs

16

Marketing Solutions

YTD growth of +25.6% partially

benefiting from consolidation of

PayCclick from Q2 2016. Q3 2017

growth of +7.0%

PayClick revenues into double digit

territory, starting to benefit from

cross-selling synergies with the

Cerved SME client base

Attractive growth profile and

product offering of PayClick has

triggered increased interest in the

Digital Marketing arena

Key highlights

Key highlights


YTD growth of +14.4% (+6.7% in Q3)

As anticipated in Q2 results,

PayClick EBITDA impacted by a

number of one-off adjustments

related to its integration into

Cerved

Overall margins gradually declining

due to lower margins of PayClick

compared to the legacy

Marketing Solutions business

14,7 13,8

21,1

13,5

17,0

2014 2015 2016 9M'16 9M'17

% % YoY Growth %

Note: 1) Adjusted EBITDA excludes provisions of €0.0m related to the Long Term Incentive Plan in FY’2016, €0.0m in 9M’2016 and €0.0m in 9M’2017


(6.2%)

+52.7%

6,8 5,9

8,2

4,7 5,4

2014 2015 2016 9M'16 9M'17

(12.6%)

+38.0%

+14.4%

45.9% 42.7%

38.7%

35.0% 31.9%

+25.6%

17

€m 2015 2016 9M' 16 9M'17

Revenues 353,5 377,0 270,8 288,9

% growth (YoY) 6,7% 6,6% 5,9% 6,7%

Adjusted EBITDA 170,8 180,0 127,3 132,1

% Revenues 48,3% 47,8% 47,0% 45,7%

EBITDA 170,8 179,3 127,0 131,1

Depreciation & Amortization (28,5) (30,6) (22,6) (25,6)

EBITA 142,3 148,7 104,3 105,5

PPA Amortization (45,8) (47,4) (34,9) (25,2)

Non recurring income and expenses (3,8) (6,5) (5,3) (4,6)

EBIT 92,8 94,8 64,2 75,7

Financial income 1,1 0,8 0,5 0,5

Financial expenses (43,2) (19,5) (15,2) (20,6)

Non recurring financial expenses (52,4) (0,5) (0,5) (0,2)

PBT (1,7) 75,5 49,0 55,4

Income tax expenses 5,3 (22,4) (15,9) (17,2)

Non recurring Income tax expenses - (4,5) (4,3) -

Reported Net Income 3,6 48,7 28,9 38,2

Adjusted Net Income 68,5 92,0 62,2 68,4

of which: Minorities 2,5 1,9 0,9 1,0

Adjusted Net Income increased

+10.0% versus the previous year,

reaching €68.4m in 9M’17

Adjusted EBITDA margin of 45.7%

in 9M’17, marginally lower than

47.0% in the prior year

PPA amortization significantly

declined due to the end of

amortization of database

allocated from business

combinations in prior years

Non-recurring items of €4.6m,

lower than the previous year,

include €2.8m for layoffs and

personnel optimization, and

€1.8m for M&A-related activities

Financial expenses include €7.5m

for fair value adjustment related

to the put&call options of CCMG,

PayClick and Major 1, expected

to result in cash-outs during the

course of 2018-2020

Summary Profit and Loss (€m)

Summary Profit and Loss

Key highlights

Note: 1) Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan in FY'16, €0.3m in 9M’16 and €1.0m in 9M'17

18

Net Working Capital at 12.1% of

LTM Revenues (pro-forma for

acquisitions), lower than 13.0% in

September 2016

The amount of Receivables

reflects a historically low level of

DSO (Days Sales Outstanding)

thanks to Cerved’s stringent

credit policies

The ongoing pickup of Revenue

growth in the Credit

Management division will lead to

an increase in Receivables and

hence also in Cerved’s

NWC/Revenue ratio

The minor contraction in

Deferred Revenues is due to the

increasing contribution of large

corporate accounts, less linked

to prepaid points

0,7 2,0 1,7 2,9 1,5

145,3 139,8 154,9 134,4 140,9

(32,4) (30,0) (38,5) (28,0) (34,8)

(73,3) (74,0) (77,3)

(60,3) (59,7)

40,4 37,8 40,9 49,1 48,0

2014 2015 2016 9M'16 9M'17

Inventories Trade receivables Trade payables

Deferred revenues Net Working Capital

Net Working Capital

11.7%

Net Working Capital (€m)

NWC as % of Revenues 1) %

10.7% 10.8% 13.0% 12.1%

Note: 1) NWC/Revenues based on pro-forma Revenues for the previous 12 months

Key highlights

19

€m 2015 2016 9M'16 9M'17

Adjusted EBITDA 170,8 180,0 127,3 132,1

Net Capex (31,6) (33,5) (23,9) (28,4)

Adjusted EBITDA-Capex 139,1 146,5 103,4 103,7

as % of Adjusted EBITDA 81% 81% 81% 79%

Cash change in Net Working

Capital3,0 (4,6) (9,9) (4,8)

Change in other assets /

liabilities / provisions(6,0) 2,0 1,9 0,1

Operating Cash Flow1) 136,1 144,0 95,4 99,0

Operating Cash Flow increased

+3.8%, from €95.4m to €99.0m

Commentary in line with H1’17

Results presentation

Operating Cash Flow benefits

from improving DSO

Net Capex continues to grow

due to the increased effort in

product innovation and new

product launches (eg. Cerved

Credit Suite launched in June)

Other payables positively

impacted by a cash contribution

for future rent installments related

to the new headquarters

Operating Cash Flow (€m)

Operating Cash Flow

Note: 1) Based on Adjusted EBITDA

Key highlights

20

€m 2015 9M'16 2016 9M'17

Bonds 530,0 - - -

New Facilities - 557,6 557,6 548,0

Revolv ing Facility - - - -

Other financial Debt 1) 41,8 17,5 19,7 16,3

Accrued Interests 17,3 5,4 3,9 4,7

Gross Debt 589,1 580,5 581,3 569,0

Cash (50,7) (20,8) (48,5) (56,2)

Capitalized financing fees 2) (1,5) (9,8) (9,3) (8,0)

IFRS Net Debt 536,8 549,8 523,4 504,8

Net Debt/ LTM Adj. EBITDA 3) 3,1x 3,1x 2,9x 2,7x

Non-recurring impact of "Forward

Start" transaction37,3 - - -

Adjusted Net Debt 499,6 549,8 523,4 504,8

Adj. Net Debt/ LTM Adj. EBITDA 3) 2,9x 3,1x 2,9x 2,7x

Financial Indebtedness

Financial Indebtedness table (€m)

IFRS Net Debt of €504.8m in

9M’17, deleveraging €18.0m

compared to H1’17

Leverage ratio in 9M’17 at 2.7x

based on LTM Adjusted EBITDA,

allowing Cerved to reduce

interest spreads to 1.50% for TLA

and 1.875% for TLB

Unanimous approval of

amendment of existing facilities

by the bank syndicate

Progress on the extension of the

maturity of existing financing

facilities: currently in talks with

bank syndicate to extend approx.

50% of the €400m TLB facility to

end-2023 (currently January

2022)

Further decline in the leverage

ratio expected by year-end, in

spite of the impact of the BP Bari

deal

1) FY’15, 9M’16, FY’16 and 9M’17 include €16.0m of Vendor Loan; FY’15 includes also €24.3m of breakage costs related to the refinancing;

2) Extraordinary write-off of €13.3m in FY’15;

3) LTM Adjusted EBITDA pro-forma including the M&A transactions for the last 12 months and the impact of provisions related to the Long Term Incentive Plan.

Key highlights

21

Table of Contents

Appendices 3

Highlights 1


0 73

132

0 128 142

109 189 255

191 191 191

0 103 188

16 159 189

221 221 221

92 188 210

22

128,4

152,8 24,6

92,9

Revenues LTM PF 9M’17

(€ and % Group)

Credit Information

Corporate Financial Institution

1.9% +26.1% +19.7% 1.9%

38%

23%

6%

32%

Credit Management Marketing Solutions

Scope of Business

Growth 9M ’17 vs’16

CAGR % ‘14-’16

Products and services sold to financial institutions and corporations to assess the solvency, creditworthiness and financial condition of commercial counterparties

and clients

Based on Italy’s largest and most comprehensive database on corporates

Market analysis, lead generation and

performance marketing products and services arising

from Cerved’s database

Servicing of all types of performing,

NPLs and problematic receivables on behalf

of banks, investors, finance companies,

utilities and corporates

+4.3% +13.9% +25.6% +1.9%

The Italian Leader in the Credit Information Market

Note: figures includes intercompanies

0 73

132

0 128 142

109 189 255

191 191 191

0 103 188

16 159 189

221 221 221

92 188 210

23

2% 42%

291 (+2.5%)

Business Information

627 (+3.9%) 802 (+9.4%)

Cerved

Position and

Market Share in 20141)

369 (-2.0%)

4.2% 41.9% 8.2%

Consumer 321

Corporates 305

No. 9 No.1 No.1 3) No.1

Market

2014 Data (€m)

(CAGR11-14)

Bank NPLs 233

Corporate Receivables

220

Business Information

119

Rating & Analytics 43

Real Estate

100

Consumer Information

107

Source: PwC, Cerved 1) Market share on 2014 figures proforma for RLValue and Recus; Credit Information market share includes the consolidation of the JV with Experian 2) Market figures on Marketing Solutions referred to 2013 fiscal year 3) No. 1 player In the non-captive market

Consumer Receivables

349

Corporate Financial Institution

Key Drivers

Pricing pressure

Cross-selling

New bank lending

Underpenetration

Industrial production

Credit checks

Growth of NPLs

Bank outsourcing

Collection levels

Cross-selling

Consolidation

Product innovation

Credit Information Marketing Solutions2)

The Italian Leader in the Credit Information Market

Credit Management

24

Group Revenues and EBITDA – Quarterly Analysis

127,3 132,1

9M

2016

2017

270,8 289,0

9M

2016

2017

Quarterly Analysis - Revenues (€m)

Quarterly Analysis – Adjusted EBITDA(€m)

88,5

99,3

83,0

97,8 102,8

88,2

Q1 Q2 Q3

41,8 47,1

38,4 44,5

48,9

38,8

Q1 Q2 Q3

Total Growth % / Organic Growth % % / %

+10.5% / +7.4%

+3.3% / +3.0%

+6.7% / +5.3%

+6.3% / +5.0%

+3.8% / +3.7%

+3.8% / +3.3%

+6.2% / +5.9%

+1.0% / +1.0%

25

Credit Information – Quarterly Analysis

68,6 70,9 60,9

200,4

71,7 73,0 62,2

206,7

Rev CI - Q1 Rev CI - Q2 Rev CI - Q3 Rev CI - 9M

2016

2017

32,0 32,0 30,0

94,0

32,7 32,0 31,0

95,8

Rev- Q1 Rev - Q2 Rev - Q3 Rev - 9M

Credit Information – Financial Institutions – Rev (€m)

36,6 38,9 30,9

106,4

39,0 40,9 31,1

111,0

Rev- Q1 Rev - Q2 Rev - Q3 Rev - 9M

2016 2017

Credit Information – Corporate – Rev (€m)

36,9 37,4 31,5

105,9

38,3 39,5 31,1

108,8

EBITDA - Q1 EBITDA - Q2 EBITDA - Q3 EBITDA - 9M

2016

2017

Credit Information – Revenues (€m)

Credit Information – Adjusted EBITDA (€m)

+3.6% +5.6%

+2.8%

+4.4% +3.0% +2.0%

+2.1% +0.1%

+1.9%

+6.5% +5.3% +0.4% +3.5%

+4.3%

+3.2%

(1.3%)

26

Credit Mgmt and Marketing Solutions – Quarterly Analysis

1,1

2,0 1,6

4,7

1,7 2,0 1,7

5,4


2016

2017

3,8

7,6 5,3

16,7

4,5

7,4 6,0

17,8


2016

2017

17,4 23,9

18,3

59,7

21,5 24,5 22,0

67,9

Rev - Q1 Rev - Q2 Rev - Q3 Rev - 9M

3,1

5,7 4,7

13,5

5,6 6,4 5,0

17,0

Rev - Q1 Rev - Q2 Rev - Q3 Rev - 9M

Credit Management – Revenues and Adjusted EBITDA (€m)

Marketing Solutions – Revenues and Adjusted EBITDA (€m)

+23.3%

+2.4%

+13.9%

+18.2%

(3.0%)

+7.0%

+79.8% +11.7%

+25.6%

+57.4% (2.8%)

+6.7%

+14.4%

+7.0%

+19.8% +13.3%

27

€m 2015 2016 9M'16 9M'17

Total Revenues (including other income) 353,7 377,1 271,1 289,0

Cost of raw material and other materials (8,3) (7,4) (4,2) (6,6)

Cost of Serv ices (78,9) (84,9) (62,0) (70,1)

Personnel costs (81,5) (91,7) (67,4) (70,9)

Other operating costs (8,5) (8,6) (6,1) (6,5)

Impairment of receivables and other provisions (5,7) (4,5) (3,9) (2,9)

Adjusted EBITDA 170,8 180,0 127,3 132,1

Performance Share Plan - (0,7) (0,3) (1,0)

EBITDA 170,8 179,3 127,0 131,1

Depreciation & amortization (28,5) (30,6) (22,6) (25,6)

EBITA 142,3 148,7 104,3 105,5

PPA Amortization (45,8) (47,4) (34,9) (25,2)

Non-recurring Income and expenses (3,8) (6,5) (5,3) (4,6)

EBIT 92,8 94,8 64,2 75,7

PBT (1,7) 75,5 49,0 55,4

Income tax expenses 5,3 (22,4) (15,9) (17,2)

Non-recurring Income tax expenses - (4,5) - -



of which: Minorities 2,5 1,9 0,9 1,0

Profit and Loss

Source: Company Information; for further details refer to Cerved Information Solutions S.p.A. Annual and Quarterly Reports

28

€m 2015 9M'16 2016 9M'17

Intangible assets 459,7 427,2 423,7 401,5

Goodwill 718,8 736,0 732,5 732,4

Tangible assets 16,4 15,6 19,8 20,2

Financial assets 8,3 8,7 8,7 8,8

Fixed assets 1.203,1 1.187,5 1.184,7 1.162,9

Inventories 2,0 2,9 1,7 1,5

Trade receivables 139,8 134,4 154,9 140,9

Trade payables (30,0) (28,0) (38,5) (34,8)

Deferred revenues (74,0) (60,3) (77,3) (59,7)

Net working capital 37,8 49,1 40,9 48,0

Other receivables 7,6 8,2 7,7 8,4

Other payables (32,2) (52,5) (53,9) (59,4)

Net corporate income tax items (1,0) (12,0) 0,3 (9,7)

Employees Leaving Indemnity (12,5) (14,0) (13,1) (13,0)

Provisions (8,5) (7,5) (7,3) (5,9)

Deferred taxes (1) (88,7) (88,6) (91,9) (91,7)

Net Invested Capital 1.105,6 1.070,1 1.067,4 1.039,7

IFRS Net Debt (2) 536,8 549,8 523,4 504,8

Group Equity 568,8 520,3 543,9 534,9

Total Sources 1.105,6 1.070,1 1.067,4 1.039,7

Balance Sheet

Source: Company Information; for further details refer to Cerved Information Solutions S.p.A. Annual and Quarterly Reports (1) Non cash item; (2) Net of capitalized financing fees

29

€m 2015 2016 9M'16 9M'17

Adjusted EBITDA 170,8 180,0 127,3 132,1

Net Capex (31,6) (33,5) (23,9) (28,4)

Adjusted EBITDA-Capex 139,1 146,5 103,4 103,7

as % of Adjusted EBITDA 81% 81% 81% 79%

Cash change in Net Working Capital 3,0 (4,6) (9,9) (4,8)

Change in other assets / liabilities (6,0) 2,0 1,9 0,1

Operating Cash Flow 136,1 144,0 95,4 99,0

Shareholder's fees - - - -

Interests paid (40,3) (29,2) (28,9) (13,2)

Cash taxes (40,2) (27,3) (10,6) (9,6)

Non recurring items 1) (3,2) (8,8) (5,4) (7,7)

Cash Flow (before debt and equity movements) 52,3 78,7 50,5 68,5

Net Div idends (40,1) (44,4) (44,5) (47,8)

Acquisitions / deferred payments / earnout (23,5) (27,9) (27,9) (2,5)

IPO Capital Increase (net of IPO costs) - - - -

Other (1,1) - - -

Debt drawdown / (repayment) - - - -

"Forward-Start" Refinancing - (35,5) (35,5) (0,2)

Net Cash Flow of the Period (12,3) (29,1) (57,3) 18,0

Cash Flow

Source: Company Information; for further details refer to Cerved Information Solutions S.p.A. Annual and Quarterly Reports (1) FY 2016 figure Includes €2.2m cash outflow for the new headquarters

30

€m 2015 2016 9M'16 9M'17


Non recurring income and expenses 3,8 6,5 5,3 4,6

Non recurring financial charges 52,4 0,5 0,5 0,2

Capitalized financing fees 2,9 2,2 1,6 1,3

PPA Amortization 45,8 47,4 34,9 25,2

IRS termination - - - -

Fair Value adjustment of options - - - 7,5

Fiscal Impact of above components (28,4) (17,7) (13,3) (8,6)

Adjustments 76,4 38,8 29,0 30,2

Impact of IRES change treatment (11,5) - - -

Non recurring income tax expenses - 4,5 4,3 -


Adjusted Net Income Bridge

Source: Company Information; for further details refer to Cerved Information Solutions S.p.A. Annual and Quarterly Reports

Cerved Information Solutions S.p.A. Via dell’Unione Europea, 6A/6B –

20097 San Donato Milanese Tel. +39 02 77541

company.cerved.com

results to 30 september 2017 - cerved company 9m … · october 27th, 2017 cerved information...

Documents