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
14 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
9 years at Cerved
12 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
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
First Nine-Months Financial Review 2
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
% / % Total Growth % / Organic Growth %
+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%
% / % Total Growth % / Organic Growth %
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
Revenues (€m) and Revenue growth (%)
Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)2)
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
Revenues (€m) and Revenue growth (%)
53,3
75,0
84,7
59,7 67,9
2014 2015 2016 9M'16 9M'17
% % YoY Growth %
Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)1)
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
Revenues (€m) and Revenue growth (%)
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
Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)1)
(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
First Nine-Months Financial Review 2
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
EBITDA - Q1 EBITDA - Q2 EBITDA - Q3 EBITDA - 9M
2016
2017
3,8
7,6 5,3
16,7
4,5
7,4 6,0
17,8
EBITDA - Q1 EBITDA - Q2 EBITDA - Q3 EBITDA - 9M
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) - -
Reported Net Income 3,6 48,7 33,2 38,2
Adjusted Net Income 68,5 92,0 62,2 68,4
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
Reported Net Income 3,6 48,7 28,9 38,2
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 68,5 92,0 62,2 68,4
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