40
Results to 31 December 2015 March 16th, 2016 CERVED INFORMATION SOLUTIONS S.p.A.
Results to 31 December 2015
March 16th, 2016
CERVED INFORMATION SOLUTIONS S.p.A.
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
Gianandrea De Bernardis – 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 & Investor Relations
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
10 years at Cerved
17 years of TMT industry experience
Prior experience: TeamSystem, AMPS, Boston Consulting Group, AT&T
Education: MBA from Bocconi University; Electronic Engineering degree from Polytechnic of Milan
3
Table of Contents
Highlights 1
Business Review 2
Financial Review 3
Next Steps 4
Appendices 5
4
Executive Summary
Macro Highlights
Positive 2015 in terms of macroeconomic fundamentals
Numerous reforms launched regarding banks and NPLs
2015
Financial Results
Revenues +6.7% vs FY 2014, +1.6% organic
EBITDA +6.7% vs FY 2014, +5.2% organic
Operating Cash Flow €136.1m in FY 2015, +7.9% vs FY 2014
Adjusted Net Income €68.5m in FY 2015, +24.7% vs FY 2014
Leverage 2.9x LTM EBITDA excl. refinancing costs
Other
Dividends of €44.85m proposed by the Board of Directors
AGM to vote upon new Board of Directors on 29 April 2016
Guidance to be provided at Investor Day in London on May 10th
5
113 119 125 132 139
2011 2012 2013 2014 2015
Consistent Growth and Cash Flow Generation
Consistent Growth EBITDA Growth High Cash Flows
Revenue (€m) EBITDA (€m) EBITDA – Capex (€m)
138 145 152 160 171
2011 2012 2013 2014 2015
267 291
313 331 353
2011 2012 2013 2014 2015
+6.7%/ 1.6%
+7.4% / +3.9%
% / % Total Growth % / Organic Growth %
Consistent Revenue, EBITDA and Cash Flow growth
Note: 2011 and 2012 EBITDA adjusted for shareholder’s fees and 2011 adjusted to review accounting policy related to the database acquisition costs
+5.1% / +3.8%
+5.5%
+6.7%/ +5.2%
+5.2%
6
Source: Bank of Italy
11.3% 12.4% 12.8% 11.7%
10.8%
8.6% 8.1%
6.6%
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 versus
same quarter of previous year
2015 GDP grew +0.8%
versus 2014, first yearly
GDP growth since 2011
Strong decline in
unemployment, and
healthy increase in
new bank lending
Despite being positive,
all macroeconomic
indicators remain well
below pre-crisis levels
Cerved proprietary
data also reflecting an
improved macro
Fewer late paying
companies and
bankruptcies reflect
the improved health of
SMEs in Italy
NPLs confirm lower
growth vs prior years
Growth rate compared to the
previous quarter
New lending volumes in € billions (quarterly)
Key highlights
Late paying companies Bankruptcies NPLs Key highlights
Unemployment as % of total working
population
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
5.8% 12.8% 8.6% -12.2%
Source: Osservatorio Cerved
3.0% 3.5% 3.7%
3.9%
Source: Osservatorio Cerved, Bank of Italy
Q4
-0,5%
Q4
0,0%
Q4
0,0%
Q4
0,1%
Source: ISTAT, OECD
2012
Q1 Q2 Q3 Q4
YoY -0.4%
YoY -1.7%
YoY -2.8%
Source: ISTAT
Q1 Q2 Q3 Q4
2012 2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
-36%
2015
Q1 Q2 Q3
Q1 Q2 Q3 Q4
2012 2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015
Q1 Q2 Q3 Q1 Q2 Q3 Q4
2012 2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015
Q1 Q2 Q3
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015
Q1 Q2 Q3 Q4
YoY +0.8%
2012
Q1 Q2 Q3 Q4
2013
Q1 Q2 Q3 Q4
2014
Q1 Q2 Q3 Q4
2015
Q1 Q2 Q3 Q4
7
Table of Contents
Highlights 1
Business Review 2
Financial Review 3
Next Steps 4
Appendices 5
8
Business Review Topics
Operational and Strategic Update for 2015 and Key Actions for 2016
Business
Corporate
Credit Information – Corporate
Credit Information – Financial Institutions
Credit Management
Marketing Solutions
Governance
Mergers & Acquisitions
Investor Relations
9
4.0% 2.4%
5.9% 4.3%
Lost
Clients
Existing
Clients
New Clients Y-o-Y
Consumption
2015 negatively impacted by decline in lost points, despite positive trends regarding the
sale and consumption of prepaid points and services (+7.9% and +4.3%, respectively)
Revamp of sales force network well underway: completion expected by June 2016, with
full impacts expected by year-end 2016
2016 also expected to benefit from product innovation: recent launch of Cerved
Credibility, as well as a new platform for Corporate products and services
Credit Information – Corporates
2015 represents a year of discontinuity, with a significant investment in the revamp of the sales network
Consumption of Credit Information Points & Services: 2015 vs 2014 1) Status Quo Sales Force Revamp
Business
Corporate
1) Consumption of points and services in 2015 compared to 2014 for credit information products by c. 20k corporate clients covered by the field sales network
Key
Initiatives
New Go-to-Market
Teleselling for Small Clients
Salesforce Reinforcement
New CRM
Churn Reduction Initiatives
finalised
ongoing ongoing
advanced advanced
10
Credit Information – Financial Institutions Business
Corporate
2015 Revenue growth of +2.0% exceeded initial guidance of -1.0% to +1.0%
Better than expected results due to a combination of few bank renewals, no impact yet
from bank consolidation, new bank lending returning to growth, and most importantly
strong results from the real estate appraisals segment
Popolari banks currently preparing themselves for consolidation, which is expected to
start to materialise in the latter part of 2016
2015 characterised by positive conditions with limited renewals and no impact from consolidation
Bank New Lending from 2008 (€bn) 1) CI Financial Institutions – Revenue Breakdown 2015
1) Source: Bank of Italy
682
572 517
488 463 401 395
451
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
2008 2009 2010 2011 2012 2013 2014 2015
Yo
Y c
ha
ng
e (%
)
Real Estate
Rating &
Analytics Business
Information
11
Credit Management Business
Corporate
Banks &
Investors
Utilities &
Financials Corporates
Legal
Services
Re-
marketing
Significant opportunities in 2016 offered by government reforms regarding bankruptcy
and foreclosure procedures, together with specific initiatives to reduce bank NPLs
Strong focus also on optimising the “small tickets” segment, integrating the operations of
Recus (utility and finance company clients) with Finservice (corporate clients)
Assets Under Management at EUR 12.5bn at YE 2015, reflecting an outflow of EUR 1.6bn
of old portfolios. The outflow does not have any impact on future Revenues
Another record year for the Credit Management division with Sales and EBITDA up 40.8% and 74.5%, respectively
NPLs and Problematic
Credits
Revenues Breakdown 2015 Credit Management AuMs
1.8
7.8
10.3
14.1
1.6
12.5
2012 2013 2014 FY'15
(ex.
outflows)
Outflows FY'15
12
Marketing Solutions Business
Corporate
Database &
Marketing
Platforms
Ad-Hoc
Projects
Industrial
and
Competitor
Analysis
8.9 9.9
12.8
14.7 13.8
3.1 3.5
4.7
6.8 5.9
2011 2012 2013 2014 2015
Revenues Breakdown 2015 Revenues and EBITDA (€m)
2015 was a lacklustre year for the Marketing Solutions division, despite continuing product innovation
Despite the positive launch of the Marketing+ platform, 2015 Revenues and EBITDA
declined vs the prior year, due to commercial issues and revenue recognition phasing
2015 saw a solid increase in marketing platforms (eg. Marketing+) and database-
derived products, at the expense of projects on industry and competitor analysis
2016 to continue this trend, and also to focus on improving the commercial synergies
between the corporate and marketing solutions field sales forces
13
Recus SpA 81% 19.0m
RLValue Srl 100% 1.4m
Creval Partnership 100% 21.7m
SpazioDati Srl 43% 2.3m
Mergers and Acquisitions Corporate
Business
Continue to complement organic growth with acquisitions in core and adjacent markets in Italy
2015 deals were the Creval transaction (valued €21.7m) and a further stake in
SpazioDati (€1m capital increase to reach 43%)
2016 has already seen the acquisition of a further 11% stake (reaching 91%) in the
holding company of the Credit Management activities
Currently working on a rich pipeline of small, bolt-on transactions in all key business
areas in Italy
A few deals at a very advanced stage, with Closing expected in the short term
M&A Since IPO in June 2014 Illustrative Targets
Company Stake % Investment
CI
BI
CM
Adj.
MS
Advanced Preliminary Status
Mo
re
Less
Eff
ort
M&A Effort and Status
14
Investor Relations Corporate
Business
Marked effort to increase liquidity and share price, in line with Cerved’s status as public company
2015 was a very busy year also considering CVC’s full exit via 3 ABBs, increasing Cerved’s
free float from 44% to 100% and significantly widening its institutional shareholder base
IR activity for 2016 focussed on further increasing analyst coverage (currently 11) and
attracting new investors, with the objective of increasing average daily volumes
In line with 2015 we have planned a rich schedule of conferences and roadshows,
together with the Investor Day on May 10th in London
Mar 23 Equity Conference (HSBC) Paris
May 10 Investor Day London
May 11 Business Services Conference (JPM) London
May 18 Italy Conference (DB) London
Jun 8 Italian Equity Conference (Kepler) Milan
Jun 22 CEO Conference (Mediobanca) Milan
Jun 28 European Business Services (GS) London
Sep 8 Equity Conference (HSBC) Frankfurt
Dec 6 Mid Cap Conference (Berenberg) Pennyhill
Tentative Agenda for 2016 Cerved Share Price evolution in 2015
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
80%
90%
100%
110%
120%
130%
140%
150%
160%
AVG NOSH
(monthly, k)
CERVED FTSE Mid-Cap
15
Corporate Governance Corporate
Business
Appointment of the new Board of Directors
A new Board of Directors will be voted at the AGM to be held on 29 April 2016
Total board members to remain at 11, of which a maximum of 2 from minority slates
The incumbent board will propose its own slate, to be published 30 days pre-AGM
Authorisation to issue shares for acquisitions
Enabling resolution for the BoD to issue shares for a maximum of 10% of existing shares,
without pre-emption rights, in order to maintain leverage and dividend targets
Long-term Incentive Plan (LTIP)
Performance share plan, 3 year vesting, maximum dilution of 1.5% dilution up to 2021:
- 70% of target based on Adjusted Pre-Tax Profit/Share CAGR, vesting from 6.0%
- 30% of target based on TSR, vesting from median of FTSE Italy mid-cap index
AGM/EGM on 14 December 2015 aligned Cerved to international best practice in key areas
16
Table of Contents
Highlights 1
Business Review 2
Financial Review 3
Next Steps 4
Appendices 5
17
Group Revenues
290.6 313.5 331.3
353.5
2012 2013 2014 2015
Revenue Bridge (2014 – 2015, €m)
331.3
353.5
2.5 (0,1)
21.7 (0,9) (1,0)
Revenues
2014
CI -
Financial Institutions
CI -
Corporates
Credit
Management
Marketing Solutions Other & Conso
clearing
Revenues
2015
Credit Information
+7.9% / +5.7%
+5.7% / +3.8%
% / % Total Growth % / Organic Growth %
Revenues (€m) and Revenue growth (%)
+6.7% / 1.6%
18
160.1
170.8
3.3
8.3 (0,9)
EBITDA
2014
Credit
Information
Credit
Management
Marketing
Solutions
EBITDA
2015
Group EBITDA
EBITDA Bridge (2014 – 2015, €m)
EBITDA (1) (€m) and EBITDA margin (%)
144.7 151.5 160.1 170.8
2012 2013 2014 2015
48.3% 49.8% 48.3%
(1) FY 2012 EBITDA is adjusted for Shareholder Fees;
+4.7% / +4.6%
+5.6/ +4.5%
% / % Total Growth % / Organic Growth %
+6.7% / +5.2%
48.3%
19
500
722
488
281
537
2012 2013 2014 2015
119.0 125.0
131.9 139.1
2012 2013 2014 2015
Group EBITDA-Capex and Financial Leverage
39.9% 41.0%
39.8%
% EBITDA-Capex margin (as % or Revenues)
Net Debt (€m) and Net Debt/ LTM EBITDA
1.9x
4.8x
x Adjusted Net debt/EBITDA
3.0x
YoY Growth % %
+5.5%
EBITDA-Capex (€m) and EBITDA-Capex margin (%)
+5.0% 39.4%
+5.5%
3.1x/2.9x €37.3m related
to Forward
Start, non-cash
in 2015
20
Group Divisional Performance
Credit Information Credit Management Marketing Solutions
127.4 126.3 122.0 124.5
128.8 138.2 142.7 142.6
256.232 264.5 264.7 267.1
2012 2013 2014 2015
Re
ve
nu
e
EB
ITD
A
136.8 139.3 142.1 145.4
2012 2013 2014 2015
25.0 36.6
53.3
75.0
2012 2013 2014 2015
4.4 7.6
11.2
19.5
2012 2013 2014 2015
9.9 12.8 14.7 13.8
2012 2013 2014 2015
3.5 4.7
6.8 5.9
2012 2013 2014 2015
35.6%
36.5%
45.9%
20.7%
21.0%
53.4% 52.7% 53.7%
(6.2%)
Fin. Inst.
Corp.
% YoY Growth %
11.8%
40.8% 44.2%
1.4% 0.9%
2.0%
17.6%
(12.6%)
18.8%
74.5%
64.2%
% EBITDA margin % % CAGR
42.7%
26.0% 54.4%
%
2.3%
21
Credit Information grew +0.9% FY
and +1.0% in Q4, showing an
improvement compared to 2014 in
which FY growth was +0.1%
Financial Institutions exceeded
initial expectations with +2.0% FY
and +2.3% in Q4
Corporates were lower than
expected with -0.1% FY and -0.1% in
Q4, despite positive sales and
consumption trends in FY 2015
FY 2015 EBITDA margins increased
to 54.4% versus 53.7% prior year
Q4 2015 EBITDA margin at 57.6%
versus 54.8% prior year
Increase in margin mainly due to
the operating leverage and better
product mix, particularly within the
incremental revenues registered by
the Financial Institutions segment
127.4 126.3 122.0 124.5
128.8 138.2 142.7 142.6
256.2 264.5 264.6 267.1
2012 2013 2014 2015
Credit Information
136.8 139.3
142.1 145.4
2012 2013 2014 2015
1.8%
3.2%
52.7% 53.4% 53.7%
Corporates:
Financial Institutions:
3.4%
(0.8)%
% EBITDA margin %
(0.1)%
2.0%
YoY Growth %
Revenues (€m) and Revenue growth (%)
EBITDA (€m) and EBITDA margin (%)
2.0%
0.1%
CAGR 2012-2015 2014 vs 2015
0.9%
54.4%
2.3%
Key highlights
Key highlights
22
Credit Management continued to
grow at a strong pace, with
Revenues +40.8% FY and +13.1% in
Q4
FY figures show balanced growth in
all the underlying business lines:
credit workout, legal services and
asset remarketing, both organic
and via M&A
Q4 2014 weaker than expected,
mainly due to phasing of
collections, and weaker small-ticket
performance
Credit Management
25.0
36.6
53.3
75.0
2012 2013 2014 2015
46.4%
4.4 7.6
11.2
19.5
2012 2013 2014 2015
72.4%
20.7% 17.6%
21.0%
EBITDA (€m) and EBITDA margin (%)
% EBITDA margin
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
% YoY Growth %
45.5%
47.2%
40.8%
26.0%
74.5% FY 2015 EBITDA margins at 26.0%
versus 21.0% in the prior year
Also Q4 2015 EBITDA margin at
30.4% versus 25.9% in the prior year
Increased profitability from i.) slightly
higher collection rates on most
portfolios, (ii.) the ramp-up of new
portfolios brought in during the last
year, (iii.) favourable product mix
and (iv.) benefits from cross-
fertilisation
23
3.5 4.7
6.8 5.9
2012 2013 2014 2015
Marketing Solutions
9.9
12.8 14.7
13.8
2012 2013 2014 2015
29.0%
32.3%
36.5% 35.6%
45.9%
% EBITDA margin
Marketing Solutions performance
well below expectations, with -
6.2% FY and -22.2% in Q4, despite
positive sales from new product
launches (eg. Marketing+)
Sales force suffered from fewer
leads from the Corporate field sales
(especially in Q4) due to the latter’s
focus on the revamp
Different product mix also
impacted revenue growth
EBITDA (€m) and EBITDA margin (%)
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
% YoY Growth %
45.0%
15.3%
42.7%
(12.6)%
FY 2015 EBITDA margins at 42.7%,
marginally lower compared to
45.9% in the prior year
Also Q4 2015 EBITDA margin at
55.8% is lower versus 60.4% in the
prior year
Lower margins in 2015 reflect
operating leverage of the business
(6.2)%
24
Key highlights Summary Profit and Loss (€m)
Summary Profit and Loss
Adjusted Net Income increases
+24.7% versus the prior year
Increased D&A due to the full
ramp-up of the capitalisation
and amortisation of database
costs which began in 2012
Positive tax impact due to, inter
alia, the reduction of the IRES tax
rate from 27.5% to 24.0% in 2017
Non-recurring financial expenses
include:
€37.3m of breakage costs
and old upfront fees write-off
€8.5m to adjust the fair value
of the put & call for a 11%
stake in CCMG Srl (not tax
deductible)
€6.7m write-down to reflect
changes occurred to ECIS
after the revision of strategic
partnership with Experian
€m 2012 2013 2014 2015
Revenues 290,6 313,5 331,3 353,5
% growth (YoY) 8,8% 7,9% 5,7% 6,7%
EBITDA 144,7 151,5 160,1 170,8
% Revenues 49,8% 48,3% 48,3% 48,3%
Depreciation & Amortization (16,5) (23,3) (25,1) (28,5)
EBITA 128,3 128,2 135,0 142,3
PPA Amortization (53,1) (39,4) (42,9) (45,8)
Non recurring income and expenses 2,5 (7,4) (4,5) (3,8)
EBIT 75,5 81,4 87,6 92,8
Financial income 0,9 0,8 1,1 1,1
Financial expenses - non recurring - - (10,1) (52,4)
Financial expenses (29,1) (59,6) (54,6) (43,2)
PBT 20,5 22,6 24,0 (1,7)
Income tax expenses (15,4) (14,7) (12,0) 5,3
Reported Net Income 5,1 8,0 12,0 3,6
Adjusted Net Income 62,6 43,0 55,0 68,5
of which: Minorities 0,8 1,1 1,4 2,5
25
119.5
151.5 145.3 139.8
(25.4) (30.1) (32.4) (30.0)
(82.5) (81.9) (73.3) (74.0)
11.7
40.8 40.4 37.8
2012 2013 2014 2015
Inventories Trade receivables Trade payables
Deferred revenues Net Working Capital
Net Working Capital
4.0% 13.0%
Net Working Capital (€m) Key highlights
NWC as % of Revenues %
11.7% 10.7%
NWC improves to 10.7% of
Revenues, reflecting a
continuing improvement
compared to Q1, Q2 and Q3
(15.9%, 13.0%, and 11.0%
respectively)
Cerved’s net working capital is
gradually stabilising, after an
important increase in 2014 due
to ERP-related issues, and the
strong growth of the Credit
Management business
Deferred Revenues increase
versus the prior year, reflecting
positive sales results in 2015
(+7.9% vs 2014). Please recall
that each of Q1, Q2 and Q3
figures in 2015 were below the
2014 result
Trade payables also decline, as
2014 figures included amounts
related to the IPO
26
Operating Cash Flow
increased 7.9% to €136.1m from
€126.2m in the prior year
The bulk of the improvement in
Operating Cash Flow arises
from the underlying growth in
EBITDA, together with an
improvement in Net Working
Capital
Capex was higher in 2015 vs
2014, reflecting efforts on new
product development,
innovation and other strategic
initiatives
OCF growth in FY 2015 is
weaker than in the Q1-Q3
figures, however as
anticipated this was due to the
significant improvement in
NWC in H2 2014
Key highlights Operating Cash Flow (€m)
Operating Cash Flow
(1) Cash change in Net Working Capital exludes non recurring items
€m 2012 2013 2014 2015
EBITDA 144,7 151,5 160,1 170,8
Net Capex (25,7) (26,6) (28,2) (31,6)
EBITDA-Capex 119,0 125,0 131,9 139,1
as % of EBITDA 82% 82% 82% 81%
Cash change in Net Working
Capital(1)(6,1) (24,7) 8,2 3,0
Change in other assets /
liabilities / provisions(1,9) 7,3 (13,9) (6,0)
Operating Cash Flow 111,1 107,5 126,2 136,1
as % of EBITDA 77% 71% 79% 80%
27
Financial Indebtedness
Financial Indebtedness table (€m) Key highlights
IFRS Net Debt of €536.8m at the
end of December 2015
Note that this includes €24.0m
related to the Forward Start
transaction, in addition to the
write-off of €13.3m of old
capitalized financing fees
Accruals made according to
IAS/IFRS to account for the
refinancing, even if closing
occurred on 15 Jan 2016
Net of these items, IFRS Net
Debt would be lower at
€499.6m, which leads to a
leverage ratio in December
2015 of 2.9x
Please note that on 15 January
2016 Cerved paid out €23.4m
of prepayment penalties,
€11.3m of transaction costs,
and €18.8m of accrued interest
(1) FY’15 includes 1m of Revolving Credit Facility,16m of Vendor Loan, and 24m of breakage costs related to the refinancing transaction; H1’15 includes 5m of Revolving Credit Facility and 16m of Vendor Loan
(2) Extraordinary write-off of €13.3m in FY’15 and €5.3m in 9M’15 related to the refinancing transaction
(3) LTM EBITDA pro-forma including Recus, RL Value and the Creval transaction for the last 12 months
€m 2013 2014 H1'15 2015
Bonds 780,0 530,0 530,0 530,0
Other financial Debt 1) 0,6 4,0 25,9 41,8
Accrued Interests 20,6 17,3 17,3 17,3
Gross Debt 801,1 551,3 573,2 589,1
Cash (50,3) (46,1) (14,3) (50,7)
Capitalized financing fees 2) (28,6) (17,6) (16,2) (1,5)
IFRS Net Debt 722,2 487,6 542,7 536,8
Net Debt/ LTM EBITDA 3) 4,8x 3,0x 3,3x 3,1x
Non-recurring impact of "Forward Start"
transaction- - - 37,3
Adjusted Net Debt 722,2 487,6 542,7 499,6
Adjusted Net Debt/ LTM EBITDA 4,8x 3,0x 3,3x 2,9x
28
Table of Contents
Highlights 1
Business Review 2
Financial Review 3
Next Steps 4
Appendices 5
29
Next Steps
AGM
Ordinary Shareholders’ Meeting scheduled for April 29th
Approval of FY 2015 financial accounts and appointment of new
Board of Directors among the items on the agenda
Q1
Results
Q1 Results 2016 on May 5th
Typical quarterly presentation, no strategic outlook on FY2016
Investor Day
Investor Day scheduled on May 10th in London
Focus on business review, new products and medium-long term
strategic outlook
All key Executives to attend the Investor Day
30
Table of Contents
Highlights 1
Business Review 2
Financial Review 3
Appendices 5
Next Steps 4
31
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 and
FY2013 are represented via the following accounts’ aggregation respectively:
(i.) CG SpA from 1 January to 31 March 2014 and CIS SpA from 14 March to 31
December 2014, and (ii.) Cerved Holding SpA from 1 January to 27 February
2013 and CG SpA from 9 January to 31 December 2013
On a consolidated basis, there are minor differences between the accounts of
CIS SpA and CG SpA, mainly related to costs connected to CIS SpA’s status as
listed company, and costs incurred to carry out the IPO of CIS SpA (in 2014
results)
32
Group Revenues and EBITDA - Quarterly Analysis
160.1 170.8
FY
2014
2015
331.3
353.5
FY
2014
2015
Quarterly Analysis - Revenues (€m)
Quarterly Analysis - EBITDA(€m)
79.3 84.7
71.5
95.8
83.0
94.6
78.3
97.6
Q1 Q2 Q3 Q4
38.1 41.3
33.1
47.6
39.4
45.0
35.7
50.7
Q1 Q2 Q3 Q4
Total Growth % / Organic Growth %
+11.6% / +4.6%
% / %
+6.7% / +1.6%
+4.7% / (0.7)%
+6.7% / +5.2%
+9.1%/ 7.4%
+3.6% / +1.1%
+9.5% / +2.3%
+7.7% / +5.9%
+1.9% / +0.2%
+6.4% / +6.0%
33
Credit Information – Quarterly Analysis
66.4 69.2 57.9 71.3
264.7
66.3 69.7 59.1 72.1
267.2
Rev CI - Q1 Rev CI - Q2 Rev CI - Q3 Rev CI - Q4 Rev CI - FY
2014
2015
30.3 31.5 28.6 31.6
122.0
31.1 31.6 29.5 32.3
124.5
Rev- Q1 Rev - Q2 Rev - Q3 Rev - Q4 Rev - FY
Credit Information – Financial Institutions – Rev (€m)
3.1%
36.1 37.7 29.2 39.8
142.7
35.2 38.1 29.6 39.7
142.6
Rev- Q1 Rev - Q2 Rev - Q3 Rev - Q4 Rev - FY
Credit Information – Corporate – Rev (€m)
35.2 37.4 30.4 39.1
142.1
36.0 37.4 30.6 41.5
145.4
EBITDA - Q1 EBITDA - Q2 EBITDA - Q3 EBITDA - Q4 EBITDA - FY
2014
2015
Credit Information – Revenues (€m)
(0.1)% 2.1%
Credit Information – EBITDA (€m)
2.0%
1.3% (2.4%)
2.2% (0.2)%
0.8%
0.2% 2.6% 1.2%
0.9%
2.3%
0.4% 6.2%
1.0%
2.3% (0.1)%
(0.1)%
34
Credit Mgmt and Marketing Solutions – Quarterly Analysis
1.0 1.2 0.9
3.6
6.8
1.0 1.4 0.9
2.6
5.9
EBITDA -
Q1
EBITDA -
Q2
EBITDA -
Q3
EBITDA -
Q4
EBITDA -
FY
2014
2015
1.8 2.6
1.8
5.0
11.2
2.4
6.3 4.2
6.6
19.5
EBITDA -
Q1
EBITDA -
Q2
EBITDA -
Q3
EBITDA -
Q4
EBITDA -
FY
2014
2015
Marketing Solutions – Revenues and EBITDA (€m)
10.3 12.7 11.2 19.2
53.3
14.1 21.9
17.2 21.7
75.0
Rev - Q1 Rev - Q2 Rev - Q3 Rev - Q4 Rev - FY
Credit Management – Revenues and EBITDA (€m)
2.8 3.2 2.8
6.0
14.7
2.9 3.4 2.8
4.7
13.8
Rev - Q1 Rev - Q2 Rev - Q3 Rev - Q4 Rev - FY
37.3%
73.3%
54.5%
34.2%
4.8% 6.0%
3.4%
142.0%
74.5%
12.2%
4.2%
131.7%
40.8%
(22.2%)
(6.2%)
(28.0%)
(12.6%)
(2.2%)
13.1% 33.1%
35
Profit and Loss
Source: Company Information, 2013 as “Added data”, 2014 as “Aggregated data”; for further details refer to CIS S.p.A. Quarterly and Annual Reports
€m 2012 2013 2014 2015
Total Revenues (including other income) 290,6 313,7 331,6 353,7
Cost of raw material and other materials (0,7) (2,8) (7,0) (8,3)
Cost of Serv ices (76,3) (77,6) (76,3) (78,9)
Personnel costs (67,2) (67,2) (73,7) (81,5)
Other operating costs (7,4) (8,1) (8,2) (8,5)
Impairment of receivables and other provisions (7,1) (6,4) (6,3) (5,7)
EBITDA 144,7 151,5 160,1 170,8
Depreciation & amortization (16,4) (23,3) (25,1) (28,5)
EBITA 128,2 128,2 135,0 142,3
PPA Amortization (53,1) (39,4) (42,9) (45,8)
Non-recurring income and expenses (7,4) (4,5) (3,8)
EBIT 75,5 81,4 87,6 92,8
PBT 20,5 22,6 24,0 (1,7)
Income tax expenses (15,4) (14,7) (12,0) 5,3
Reported Net Income 5,1 8,0 12,0 3,6
Adjusted Net Income 62,6 43,0 55,0 68,5
of which: Minorities 0,8 1,1 1,4 2,5
36
Balance Sheet
Source: Company Information, 2013 as “Added data”, 2014 as “Aggregated data”; for further details refer to CIS S.p.A. Quarterly and Annual Reports (1) Non cash item (2) Net of capitalized financing fees
€m 2012 2013 2014 2015
Intangible assets 248,7 501,1 472,4 459,7
Goodwill 275,8 708,6 718,8 718,8
Tangible assets 16,5 16,6 17,3 16,4
Financial assets 15,0 14,9 14,9 8,3
Fixed assets 556,1 1.241,3 1.223,4 1.203,1
Inventories 0,1 1,3 0,7 2,0
Trade receivables 119,5 151,5 145,3 139,8
Trade payables (25,4) (30,1) (32,4) (30,0)
Deferred revenues (82,5) (83,1) (73,3) (74,0)
Net working capital 11,6 39,6 40,4 37,8
Other receivables 15,4 5,8 7,1 7,6
Other payables (53,8) (20,4) (26,1) (32,2)
Net corporate income tax items (3,0) (27,2) (18,8) (1,0)
Employees Leaving Indemnity (9,6) (10,9) (13,1) (12,5)
Provisions (10,6) (15,0) (11,1) (8,5)
Deferred taxes (1) (60,4) (119,8) (109,1) (88,7)
Net Invested Capital 445,7 1.093,3 1.092,7 1.105,6
IFRS Net Debt (2) 280,6 722,2 487,6 536,8
Group Equity 165,1 371,1 605,1 568,8
Total Sources 445,7 1.093,3 1.092,7 1.105,6
37
Cash Flow
Source: Company Information, 2013 as “Added data”, 2014 as “Aggregated data”; for further details refer to CIS S.p.A. Quarterly and Annual Reports
€m 2012 2013 2014 2015
EBITDA 144,7 151,5 160,1 170,8
Net Capex (25,7) (26,6) (28,2) (31,6)
EBITDA-Capex 119,0 125,0 131,9 139,1
as % of EBITDA 82% 82% 82% 81%
Cash change in Net Working Capital (6,1) (24,7) 8,2 3,0
Change in other assets / liabilities (1,9) 7,3 (13,9) (6,0)
Operating Cash Flow 111,1 107,5 126,2 136,1
Interests paid (6,9) (29,1) (51,7) (40,3)
Cash taxes (21,3) (18,4) (24,1) (40,2)
Non recurring items (3,9) 0,1 (3,4) (3,2)
Cash Flow (before debt and equity movements) 76,8 60,1 46,9 52,3
Net Div idends (13,1) (0,1) 1,0 (40,1)
Acquisitions / deferred payments / earnout (3,4) (509,4) (20,9) (23,5)
IPO Capital Increase (net of IPO costs) - - 220,2 -
Other - - (0,1) (1,1)
Debt drawdown / (repayment) (48,0) 482,8 (254,5) -
Net Cash Flow of the Period 12,3 33,5 (7,5) (12,3)
38
Adjusted Net Income Bridge
Source: Company Information, 2013 as “Added data”, 2014 as “Aggregated data”; for further details refer to CIS S.p.A. Quarterly and Annual Reports Note: PPA Amortization refers to business aggregation processes
€m 2012 2013 2014 2015
Reported Net Income 5,1 8,0 12,0 3,6
Non recurring income and expenses (2,5) 7,4 4,5 3,8
Shareholders Fee 2,2 - -
Capitalized financing fees 3,2 4,1 3,4 2,9
Earn-out 26,8 - -
PPA Amortization 53,1 39,4 42,9 45,8
Financial charges non-recurring - - 10,1 52,4
IRS termination - - 1,0 -
Fiscal Impact of above components (25,3) (15,8) (18,9) (28,4)
Adjustments 57,5 35,1 43,0 76,4
Impact of IRES change treatment - - - (11,5)
Adjusted Net Income 62,6 43,0 55,0 68,5
Cerved Information Solutions S.p.A. Via San Vigilio, 1 - 20142 Milano
Tel. +39 02 77541 Fax +39 02 76020458
company.cerved.com
