November 11 th , 2016 Cerved Information Solutions S.p.A. Results to 30 September 2016
0 73
132
0 128 142
109 189 255
191 191 191
0 103 188
16 159 189
221 221 221
92 188 210
November 11th, 2016
Cerved Information Solutions S.p.A.
Results to 30 September 2016
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
7 years at Cerved
7 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
3 years at Cerved
13 years of TMT industry experience
Prior experience: CVC, Deutsche Bank, Bankers Trust, UBS, SEAT
Education: degree in Economics and Business Administration from University of Bergamo
8 years at Cerved (last 3 as GM&COO, beforehand as Board member and Operating Partner)
11 years of TMT industry experience
Prior experience: Bain Capital, Bain & Company, Citibank
Education: degree in Business Administration from Bocconi University of Milan
3
Table of Contents
Highlights 1
Appendices 3
First Nine-Months Financial Review 2
4
Executive Summary
Macro Highlights
Benign albeit fragile macroeconomic conditions
Increasing momentum by Italian banks with respect to NPLs
9M’16
Financial Results
Revenues +5.9% vs 9M 2015, +3.6% organic
Adjusted EBITDA1) +6.0% vs 9M 2015, +4.3% organic
Operating Cash Flow2) €95.4m in 9M 2016, +0.2% vs 9M 2015
Adjusted Net Income €62.4m in 9M 2016, +34.6% vs 9M 2015
Leverage 3.1x LTM Adjusted EBITDA
Other
Closed Major1 and Fox&Parker bolt-on deals in July and August
LTIP implemented in September with assignment of stock grants
Placed offer for the BMPS NPLs servicing platform
Note: 1) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan 2) Based on Adjusted EBITDA
5 Note: 1) 2012 EBITDA adjusted for shareholder’s fees; 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan 2) Based on Adjusted EBITDA
Consistent Growth and Cash Flow Generation
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
111 108 126 136
95 95
2012 2013 2014 2015 9M'15 9M'16
145 152 160 171
120 127
2012 2013 2014 2015 9M'15 9M'16
291 313
331 353
256 271
2012 2013 2014 2015 9M'15 9M'16
+5.9%/ 3.6%
+6.7% / +3.7%
% / % Total Growth % / Organic Growth %
+5.7% / +4.7%
+0.2%
+6.0%/ +4.3%
+7.0%
6
Source: Bank of Italy
11,4% 12,4% 12,7% 11,6%
11,5%
10,8%
8,6% 8,1% 8,0%
6,7%
Macro Highlights
Key Economic Indicators
Cerved Proprietary
Data
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
GDP flat in Q2 2016; IMF
growth estimates at
+0.8% and +0.9% for 2016
and 2017 respectively
Unemployment rate
stable at 11.5% in Q2
2016, well below the
peak in Q4 2014
New bank lending
declined by 5.9% YTD
Aug 2016 vs 2015
Late paying companies
down again to 6.7%, the
lowest Q2 figure in the
last 4 years
Bankruptcy procedures
in Q2 2016 declined 2.0%
vs Q2 2015
Inflow of NPLs up by 3.8%
vs the previous quarter,
after a moderately flat
2015
Growth rate compared to the
previous quarter
New lending volumes in € billions (quarterly)
Key highlights
Late paying companies Bankruptcies NPLs Key highlights
Default rate on outstanding loans; Cerved estimates on
Bank of Italy data
Source: Osservatorio Cerved
Q2
50
100
150
200
2008
2009
2010
2011
2012
2013
2014
2015
2016
5.8% 12.7% 8.7% -11.6%
-2,0%
Source: Osservatorio Cerved
3,0% 3,5%
3,7% 3,7% 3,8%
Source: Osservatorio Cerved, Bank of Italy
Q4
(0,6)%
Q4
(0.1)% Q4
(0,1)%
Q4
0,2%
0,0%
Source: ISTAT, OECD
YoY -0.4%
YoY -1.7%
YoY -2.8%
Source: ISTAT
-44%
YoY +0.8%
Unemployment as % of total working
population
Q1 Q2 Q3 Q4
2012
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015 ‘16
Q1 Q2
Q1 Q2 Q3 Q4
2012
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015 ‘16
Q1 Q2
Q1 Q2 Q3 Q4
2012
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015 ‘16
Q1 Q2 Q1 Q2 Q3 Q4
2012
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015 ‘16
Q1 Q2 Q1 Q2 Q3 Q4
2012
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015 ‘16
Q1 Q2
Note: figures and estimates are subject to periodical revisions
7
Table of Contents
Highlights 1
Appendices 3
First-Nine Months Financial Review 2
8
Group Revenues
Revenue Bridge (9M’15 – 9M’16, €m)
Revenues (€m) and Revenue growth (%)
313,5 331,3 353,4
255,9 270,8
2013 2014 2015 9M'15 9M'16
255,9
270,8
1,3 4,0
6,4 4,4 (1,0)
Revenues
9M'2015
CI - Financial
Institutions
CI -
Corporates
Credit
Management
Marketing
Solutions
Other & Conso
clearing
Revenues
9M'2016
Credit Information
+6.7% / +1.6%
+5.7% / +3.8%
% / % Total Growth % / Organic Growth %
+5.9% / 3.6%
9
170,8 151,5 160,1
120,1 127,3
2013 2014 2015 9M'15 9M'16
Group Adjusted EBITDA1)
EBITDA Bridge (9M’15 – 9M’16, €m)
Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)1)
48.3% 48.3%
+5.6/ +4.5%
% / % Total Growth % / Organic Growth %
+6.0% / 4.3%
46.9% 47.0%
120,1
127,0 127,3
2,0
3,8
1,4 (0,3)
EBITDA
9M'2015
Credit
Information
Credit
Management
Marketing
Solutions
Adjusted EBITDA
9M'2016
Impact
PSP 2019-2021
EBITDA
9M'2016
+6.7/ +5.2%
48.3%
Note: 1) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan
10 Note: 1) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan; Operating Cash Flow based on Adjusted EBITDA 2) Excluding impact of Euro 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)
136,1
107,5 126,2
95,2 95,4
2013 2014 2015 9M'15 9M'16
71.0% 78.8%
% Operating Cash Flow (as % of Adjusted EBITDA) YoY Growth % %
+17.3%
79.3% 74.9%
+0.2%
79.7%
+7.9%
722
488 500 550
2013 2014 2015 9M'16
4.8x
3.0x
x Net debt/Adjusted EBITDA
2.9x2) 3.1x
11 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) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan
Group Divisional Performance
Credit Information Credit Management Marketing Solutions
126,3 122,0 124,5 92,7 94,0
138,2 142,7 142,6
102,4 106,4
264,5 264,7 267,1
195,1 200,4
2013 2014 2015 9M'15 9M'16
Re
ve
nu
e
Ad
just
ed
EB
ITD
A2)
139,3 142,1 145,4
103,9 105,9
2013 2014 2015 9M'15 9M'16
36,6 53,3
75,0
53,3 59,7
2013 2014 2015 9M'15 9M'16
7,6 11,2
19,5
12,9 16,7
2013 2014 2015 9M'15 9M'16
12,8 14,7 13,8 9,2
13,5
2013 2014 2015 9M'15 9M'16
4,7 6,8 5,9
3,3 4,7
2013 2014 2015 9M'15 9M'16
36.5%
45.9%
20.7%
21.0%
52.7% 53.7% 54.4%
47.4%
Fin. Inst.
Corp.
% YoY Growth %
4.0%
11.9% 43.1%
0.5%
2.7%
2.2%
43.1%
12.6%
29.4%
60.3%
Adjusted EBITDA margin % % CAGR
36.1%
35.0%
24.2%
27.9%
53.3% 52.8%
%
1.9% 26.0%
42.7%
1)
12
Continuing growth in the Financial
Institutions segment (+1.4% YTD,
+1.2% in Q3) thanks to the
Appraisals segment
Solid results in the Corporate
segment which grew +5.1% in Q3’
16 (+3.9% YTD), driven by the
ongoing implementation of the
sales force revamp coupled with
new product launches (eg Cerved
Credibility)
Healthy trends in terms of sale and
consumption of prepaid points
Adjusted EBITDA increased by
+1.9% in 9M 2016 versus previous
year
Margin stood at 52.8%, slightly
lower than in previous year due to
mix effect
Including the impact of the Long
Term Incentive Plan, EBITDA growth
in 9M 2016 would have been +1.6%
with a margin of 52.7%
Credit Information
Revenues (€m) and Revenue growth (%)
Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)2)
CAGR 2013-2015 9M’15 vs 9M’16
Key highlights
Key highlights
126,3 122,0 124,5 92,7 94,0
138,2 142,7 142,6
102,4 106,4
264,5 264,7 267,1
195,1 200,4
2013 2014 2015 9M'15 9M'16
0.1%
2.7%
0.9%
Financial Institutions:
1.6%
(0.7)% 3.9%
1.4%
Corporates:
139,3 142,1 145,4
103,9 105,9
2013 2014 2015 9M'15 9M'16
52.7% 53.7%
% % YoY Growth %
2.0%
53.3% 52.8%
1.9%
54.4%
2.3%
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) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan
13
Credit Management division grew
+11.9% YTD and +6.3% in Q3 2016
The Receivables-based segment
declined YTD, although Recus and
Finservice (now merged in Cerved
Credit Collection S.p.A.) returned
to growth in September
The NPLs-based segment continues
to grow in all business lines
(workout, legal services,
remarketing) despite limited new
portfolio intakes (AUM €13.2bn)
Credit Management
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
Adjusted EBITDA increased +29.4%
YTD versus the prior year and
+25.8% in Q3
The improvement in margins
reflects: (i.) improving collection
rates in the NPLs-related segment;
(ii.) operational improvements in
the entire division; (iii.) cost
reduction initiatives within
Finservice and Recus; and (iv.)
positive impact from business mix
36,6
53,3
59,7 53,3
75,0
2013 2014 2015 9M'15 9M'16
7,6 11,2
19,5
12,9 16,7
2013 2014 2015 9M'15 9M'16
20.7% 21.0%
% % YoY Growth %
45.5%
47.2%
11.9%
24.2%
27.9%
29.4%
40.8%
74.5%
26.0%
Note: 1) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan
Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)1)
14
Marketing Solutions
Marketing Solutions grew by +47.4%
YTD and +64.7% in Q3
The bulk of the growth is
attributable to the first time
consolidation of the PayClick
business starting from 1 April 2016
On an organic basis, YTD growth
was high single digit for the legacy
Marketing Solutions business and
low double digit for the PayClick
business
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
Adjusted EBITDA increased by
+43.1% in 9M’16 versus previous
year, with an even higher growth
rate in Q3 which grew by +74.8%
Despite the lower margins
generated by the PayClick
business, the overall margin for the
Marketing Solutions division was
35.0% of 9M 2016, marginally below
the level of 36.1% in the prior year
3,3
4,7 4,7
6,8 5,9
2013 2014 2015 9M'15 9M'16
12,8
14,7 13,8
9,2
13,5
2013 2014 2015 9M'15 9M'16
36.5%
45.9%
% % YoY Growth %
45.0%
15.3% 47.4%
36.1%
35.0%
43.1%
(12.6)%
42.7%
(6.2)%
Note: 1) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan
Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)1)
15
Summary Profit and Loss (€m)
Summary Profit and Loss
Top line growth of +5.9%, of
which +3.6% organic
Adjusted EBITDA growth of +6.0%,
of which +4.3% organic, or +5.7%
including the impact of the Long
Term Incentive Plan (non-cash)
The Adjusted EBITDA margin
remained in line with the prior
year, despite the lower margins
associated with faster growing
businesses and the LTIP provisions
PPA increased by €2.2m having
allocated the Creval transaction
goodwill as per year end 2015
Higher non-recurring items due to
the increase in lay-offs, the non-
compete paid to the former CEO,
and costs related to the M&A
transactions
Non-recurring income tax
accrual of €4.3m referred to a
tax settlement related to events
at the time of the buyout in 2009
Key highlights
€m 2014 2015 9M'15 9M' 16
Revenues 331,3 353,5 255,9 270,8
% growth (YoY) 5,7% 6,7% 8,6% 5,9%
Adjusted EBITDA 160,1 170,8 120,1 127,3
% Revenues 48,3% 48,3% 46,9% 47,0%
EBITDA 160,1 170,8 120,1 127,0
Depreciation & Amortization (25,1) (28,5) (21,3) (22,6)
EBITA 135,0 142,3 98,8 104,3
PPA Amortization (42,9) (45,8) (32,7) (34,9)
Non recurring income and expenses (4,5) (3,8) (3,3) (5,3)
EBIT 87,6 92,8 62,8 64,2
Financial income 1,1 1,1 0,7 0,5
Financial expenses (54,6) (43,2) (32,2) (15,2)
Non recurring financial expenses (10,1) (52,4) (36,4) (0,5)
PBT 24,0 (1,7) (5,1) 49,0
Income tax expenses (12,0) 5,3 (3,4) (15,9)
Non recurring Income tax expenses - - - (4,3)
Reported Net Income 12,0 3,6 (8,5) 28,9
Adjusted Net Income 55,0 68,5 46,3 62,4
16
Net Working Capital
13.0%
Net Working Capital (€m)
NWC as % of Revenues %
11.7% 10.7%
Net Working Capital at 13.0% of
Revenues versus 11.0% in
September 2015 (based on LTM
revenues including acquisitions)
Trade Receivables increased by
€14.2m versus the prior year. The
increase derives from (i.)
underlying growth in particular in
the Credit Management division,
(ii) recent M&A activity (c. €4.0m)
(iii) late-paying clients and in
particular financial institutions
A portion of such increase will be
structural to the business
Deferred Revenues increased by
€2.5m reflecting the upward
trend in the sale of pre-paid
points by the Corporate sales
force, as well as the
consolidation of Fox & Parker
Similarly to H1’16, the increase in
inventory of c. €1m is due to the
impact of goods held for sale on
behalf of banks
1,3 0,7 2,0 1,8 2,9
151,5 145,3 139,8 120,2 134,4
(30,1) (32,4) (30,0) (25,2) (28,0)
(81,9) (73,3) (74,0) (57,8) (60,3)
40,8 40,4 37,8 38,9 49,1
2013 2014 2015 9M'15 9M'16
Inventories Trade receivables Trade payables
Deferred revenues Net Working Capital
11.0%1) 13.0%2)
Note: 1) NWC/Revenues based on Revenues of Recus, RL Value and the Creval transaction for the previous 12 months 2) NWC/Revenues based on Revenues of ClickAdv, Major1 and Fox&Parker for the previous 12 months
Key highlights
17
Operating Cash Flow at €95.4m,
in line with the previous year
(+0.2% vs 9M’15)
Note that OCF had been
particularly strong in 2015 due to
phasing of NWC improvements
(+26.3% H1, +13.4% 9M, +7.9% FY)
Cash outflow of €9.9m for NWC
driven by the increase in
Receivables, in part structural
(Credit Management and
PayClick), in part temporary (late
paying clients)
Operating Cash Flow for FY 2016
expected to improve during the
course of Q4
Capex increased by €1.4m
compared to 9M’15 due to
development of new products
and the enlarged perimeter
Capex for new HQ estimated at
€4.5m and to be registered in the
Q4 accounts
Operating Cash Flow (€m)
Operating Cash Flow
Note: 1) Based on Adjusted EBITDA
Key highlights
€m 2014 2015 9M'15 9M'16
Adjusted EBITDA 160,1 170,8 120,1 127,3
Net Capex (28,2) (31,6) (22,5) (23,9)
Adjusted EBITDA-Capex 131,9 139,1 97,6 103,4
as % of Adjusted EBITDA 82% 81% 81% 81%
Cash change in Net Working
Capital8,2 3,0 1,8 (9,9)
Change in other assets /
liabilities / provisions(13,9) (6,0) (4,2) 1,9
Operating Cash Flow1) 126,2 136,1 95,2 95,4
18
Financial Indebtedness
Financial Indebtedness table (€m)
IFRS Net Debt of €549.8m at the
end of September 2016
Leverage ratio in 9M’16 stood at
3.1x (based on LTM Adjusted
EBITDA pro-forma including
M&A transactions for the last 12
months), lower than the 3.2x in
H1’16
New Facilities in 9M’15
decreased to €557.6m due to
the reimbursement of €2.4m in
Q3’16 related to the Term Loan
A tranche
Revolving Credit Facility drawn
€25.0m during the course of
H1 ’16 and entirely reimbursed in
Q3 ’16
Cerved on track to reach
guidance in terms of leverage
target of 3.0x by the end of 2016 1) FY’15, H1’16 and 9M’16 include €16m of Vendor Loan; FY’15 includes also €24m 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
€m 2014 2015 H1'16 9M'16
Bonds 530,0 530,0 - -
New Facilities - - 560,0 557,6
Revolv ing Facility - - 25,0 -
Other financial Debt 1) 4,0 41,8 18,3 17,5
Accrued Interests 17,3 17,3 5,7 5,4
Gross Debt 551,3 589,1 609,0 580,5
Cash (46,1) (50,7) (30,0) (20,8)
Capitalized financing fees 2) (17,6) (1,5) (10,4) (9,8)
IFRS Net Debt 487,6 536,8 568,6 549,8
Net Debt/ LTM Adjusted EBITDA 3) 3,0x 3,1x 3,2x 3,1x
Non-recurring impact of "Forward Start"
transaction- 37,3 - -
Adjusted Net Debt 487,6 499,6 568,6 549,8
Adjusted Net Debt/ LTM Adjusted EBITDA 3) 3,0x 2,9x 3,2x 3,1x
19
Table of Contents
Highlights 1
Appendices 3
First Nine Months Financial Review 2
20
Summary Long Term Incentive Plan (extract from 9M’15 Results)
Key
Features of
New LTIP
Performance Shares with 3-year vesting. Performance indicators for
rights awarded in 2016 and vesting in 2019 are:
Adjusted Pre-Tax Profit CAGR per share from 2016-2018 (70%
weight): 0% vesting below 6% CAGR, 40% vesting at 6% CAGR,
100% vesting from 10% CAGR
Total Shareholder Return vs Italian FTSE Mid-Cap Index (30%
weight): 0% vesting below median, 50% to 100% vesting in 3rd
quartile, 100% vesting in 4th quartile
Total compensation for key managers in line with market standards.
Coinvestment requirements for all categories of beneficiaries
1.5% maximum dilution of share capital to 2021 (2.925m shares)
Guidelines
for
New LTIP
Incentivise and loyalise the management team in the long term
Wide group of beneficiaries to foster alignment with shareholders
Transparent LTIP in line with market standards
21
Basis for Financial Information
Please note that Cerved Information Solutions SpA (“CIS SpA”) was
incorporated on 14 March 2014 and holds a 100% stake in Cerved Group SpA
(“CG SpA”) since 28 March 2014
In order to provide complete financial information to reflect CIS SpA
consolidated business operations, the financial data referred to FY2014 are
represented via the CG SpA from 1 January to 31 March 2014 and CIS SpA from
14 March to 31 December 2014
22
Group Revenues and Adjusted EBITDA – Quarterly Analysis
120,1 127,3
9M
2015
2016
255,9 270,8
9M
2015
2016
Quarterly Analysis - Revenues (€m)
Quarterly Analysis – Adjusted EBITDA(€m)1)
83,0
94,6
78,3
88,5
99,3
83,0
Q1 Q2 Q3
39,4
45,0
35,7
41,8
47,1
38,4
Q1 Q2 Q3
Total Growth % / Organic Growth %
+5.0% / +3.1%
% / %
+6.6% / +3.9%
+4.6%/ +3.4%
+6.1% / +3.7%
+6.1% / +3.8%
+5.9%/ 3.6%
+6.0% / 4.3%
+7.6%2) / +6.3%
Note: 1) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan 2) Including impact of provisions for the Performance Share Plan 2019-2021 the EBITDA growth in Q3’16 would have been 6.8%
23
Credit Information – Revenues (€m)
Credit Information - Quarterly Analysis
66,3 69,7 59,1
195,1
68,6 70,9 60,9
200,4
Rev CI - Q1 Rev CI - Q2 Rev CI - Q3 Rev CI - 9M
2015
2016
31,2 31,8 29,7
92,7
32,1 31,9 30,0
94,0
Rev- Q1 Rev - Q2 Rev - Q3 Rev - 9M
Credit Information – Financial Institutions – Rev (€m)
2.7%
35,1 37,9 29,4
102,4
36,6 38,9 30,9
106,4
Rev- Q1 Rev - Q2 Rev - Q3 Rev - 9M
2015 2016
Credit Information – Corporate – Rev (€m)
36,0 37,4 30,6
103,9
36,9 37,4 31,5
105,9
EBITDA - Q1 EBITDA - Q2 EBITDA - Q3 EBITDA - 9M
2015
2016
Credit Information – Adjusted EBITDA (€m)1)
0.3%
3.5% 1.6%
0.2% 2.7%
4.2% 2.7%
3.0%
3.1%
2.7%
1.2%
1.4%
5.1%
3.9%
1.9%
Note: 1) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan
24
Credit Mgmt and Marketing Solutions - Quarterly Analysis
1,0 1,4 0,9
3,3
1,1 2,0
1,6
4,7
EBITDA - Q1 EBITDA - Q2 EBITDA - Q3 EBITDA - 9M
2015
2016
2,4
6,3 4,2
12,9
3,8
7,6 5,3
16,7
EBITDA - Q1 EBITDA - Q2 EBITDA - Q3 EBITDA - 9M
2015
2016
Marketing Solutions – Revenues and Adjusted EBITDA (€m)1)
14,1
21,9 17,2
53,3
17,4 23,9
18,5
59,9
Rev - Q1 Rev - Q2 Rev - Q3 Rev - 9M
Credit Management – Revenues and Adjusted EBITDA (€m)1)
2,9 3,4 2,8
9,2
3,1
5,7 4,7
13,5
Rev - Q1 Rev - Q2 Rev - Q3 Rev - 9M
9.0%
23.3% 21.1%
5.1%
69.7%
7.6%
48.6%
64.7%
47.4%
74.8%
43.1%
6.3%
11.9%
26.7%
29.4%
54.9%
Note: 1) 9M’16 Adjusted EBITDA excludes provisions of €0.3m related to the Long Term Incentive Plan
25
Profit and Loss
Source: Company Information, 2014 as “Aggregated data”; for further details refer to Cerved Information Solutions S.p.A. Quarterly and Annual Reports
€m 2014 2015 9M'15 9M'16
Total Revenues (including other income) 331,6 353,7 256,0 271,1
Cost of raw material and other materials (7,0) (8,3) (6,0) (4,2)
Cost of Serv ices (76,3) (78,9) (57,8) (62,0)
Personnel costs (73,7) (81,5) (61,4) (67,4)
Other operating costs (8,2) (8,5) (6,4) (6,1)
Impairment of receivables and other provisions (6,3) (5,7) (4,4) (3,9)
Adjusted EBITDA 160,1 170,8 120,1 127,3
Performance Share Plan - - - (0,3)
EBITDA 160,1 170,8 120,1 127,0
Depreciation & amortization (25,1) (28,5) (21,3) (22,6)
EBITA 135,0 142,3 98,8 104,3
PPA Amortization (42,9) (45,8) (32,7) (34,9)
Non-recurring Income and expenses (4,5) (3,8) (3,3) (5,3)
EBIT 87,6 92,8 62,8 64,2
PBT 24,0 (1,7) (5,1) 49,0
Income tax expenses (12,0) 5,3 (3,4) (15,9)
Non-recurring Income tax expenses - - - (4,3)
Reported Net Income 12,0 3,6 (8,5) 28,9
Adjusted Net Income 55,0 68,5 46,3 62,4
of which: Minorities 1,4 2,5 1,6 0,9
26
Balance Sheet
Source: Company Information, 2014 as “Aggregated data”; for further details refer to Cerved Information Solutions S.p.A. Quarterly and Annual Reports (1) Non cash item (2) Net of capitalized financing fees
€m 2014 2015 9M'15 9M'16
Intangible assets 472,4 459,7 441,3 427,2
Goodwill 718,8 718,8 739,6 736,0
Tangible assets 17,3 16,4 16,9 15,6
Financial assets 14,9 8,3 15,2 8,7
Fixed assets 1.223,4 1.203,1 1.213,0 1.187,5
Inventories 0,7 2,0 1,8 2,9
Trade receivables 145,3 139,8 120,2 134,4
Trade payables (32,4) (30,0) (25,2) (28,0)
Deferred revenues (73,3) (74,0) (57,8) (60,3)
Net working capital 40,4 37,8 38,9 49,1
Other receivables 7,1 7,6 8,0 8,2
Other payables (26,1) (32,2) (31,4) (52,5)
Net corporate income tax items (18,8) (1,0) (8,7) (12,0)
Employees Leaving Indemnity (13,1) (12,5) (13,1) (14,0)
Provisions (11,1) (8,5) (8,6) (7,5)
Deferred taxes (1) (109,1) (88,7) (94,6) (88,6)
Net Invested Capital 1.092,7 1.105,6 1.103,7 1.070,1
IFRS Net Debt (2) 487,6 536,8 546,7 549,8
Group Equity 605,1 568,8 557,0 520,3
Total Sources 1.092,7 1.105,6 1.103,7 1.070,1
27
Cash Flow
Source: Company Information, 2014 as “Aggregated data”; for further details refer to Cerved Information Solutions S.p.A. Quarterly and Annual Reports
€m 2014 2015 9M'15 9M'16
Adjusted EBITDA 160,1 170,8 120,1 127,3
Net Capex (28,2) (31,6) (22,5) (23,9)
Adjusted EBITDA-Capex 131,9 139,1 97,6 103,4
as % of Adjusted EBITDA 82% 81% 81% 81%
Cash change in Net Working Capital 8,2 3,0 1,8 (9,9)
Change in other assets / liabilities (13,9) (6,0) (4,2) 1,9
Operating Cash Flow1) 126,2 136,1 95,2 95,4
Interests paid (51,7) (40,3) (38,1) (28,9)
Cash taxes (24,1) (40,2) (28,4) (10,6)
Non recurring items (3,4) (3,2) (2,3) (5,4)
Cash Flow (before debt and equity movements) 46,9 52,3 26,3 50,5
Net Div idends 1,0 (40,1) (39,8) (44,5)
Acquisitions / deferred payments / earnout (20,9) (23,5) (23,5) (27,9)
IPO Capital Increase (net of IPO costs) 220,2 - - -
Other (0,1) (1,1) (1,1) -
Debt drawdown / (repayment) (254,5) - - -
"Forward-Start" Refinancing - - - (35,5)
Net Cash Flow of the Period (7,5) (12,3) (38,0) (57,3)
28
€m 2014 2015 9M'15 9M'16
Reported Net Income 12,0 3,6 (8,5) 28,9
Non recurring income and expenses 4,5 3,8 3,3 5,3
Non recurring financial charges 10,1 52,4 36,4 0,5
Non recurring income tax expenses - - - 4,3
Performance Share Plan - - - 0,3
Capitalized financing fees 3,4 2,9 2,1 1,6
PPA Amortization 42,9 45,8 32,7 34,9
IRS termination 1,0 - - -
Fiscal Impact of above components (18,9) (28,4) (19,7) (13,4)
Adjustments 43,0 76,4 54,8 33,5
Impact of IRES change treatment - (11,5) - -
Adjusted Net Income 55,0 68,5 46,3 62,4
Adjusted Net Income Bridge
Source: Company Information, 2014 as “Aggregated data”; for further details refer to Cerved Information Solutions S.p.A. Quarterly and Annual Reports Note: PPA Amortization refers to business aggregation processes
Cerved Information Solutions S.p.A. Via San Vigilio, 1 - 20142 Milano
Tel. +39 02 77541 Fax +39 02 76020458
company.cerved.com