results to 30 september 2016 - cerved company q3 2016_vf_0.pdfnovember 11th, 2016 cerved information...

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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


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)


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%


+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%


+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



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


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%



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


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)%



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%


24

Credit Mgmt and Marketing Solutions - Quarterly Analysis

1,0 1,4 0,9

3,3

1,1 2,0

1,6

4,7


2015

2016

2,4

6,3 4,2

12,9

3,8

7,6 5,3

16,7


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%


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)



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


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 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

results to 30 september 2016 - cerved company q3 2016_vf_0.pdfnovember 11th, 2016 cerved information...

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