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February 24th, 2017
Cerved Information Solutions S.p.A.
Results to 31 December 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
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
Business Review 2
Financial Review 3
Appendices 4
4
Executive Summary
Macro Highlights
2016 and 2017 confirm expectations for modest growth
Increased activity by banks to resolve their issues with NPLs
2016
Financial Results
Revenues +6.6% vs FY 2015, +4.1% organic
Adjusted EBITDA1) +5.4% vs FY 2015, +3.9% organic
Operating Cash Flow2) €144.0m in FY 2016, +5.8% vs FY 2015
Adjusted Net Income €92.0m in FY 2016, +34.2% vs FY 2015
Leverage 2.9x LTM Adjusted EBITDA
Other
Dividends of €48.2m proposed by the Board of Directors
AGM to vote upon new Board of Statutory Auditors on April 13th
Strategic outlook to be presented with Q1 2017 results
Note: 1) 2016 Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan 2) Based on Adjusted EBITDA
5
Consistent Growth and Cash Flow Generation
Note: 1) 2012 EBITDA adjusted for shareholder’s fees; 2016 Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan 2) Based on Adjusted EBITDA
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
114 111 108 126 136 144
2011 2012 2013 2014 2015 2016
138 145 152 160 171 180
2011 2012 2013 2014 2015 2016
267 291
313 331 353
377
2011 2012 2013 2014 2015 2016
+6.6%/ 4.1%
+7.2% / +3.3%
% / % Total Growth % / Organic Growth %
+5.5% / +4.1%
+5.4%/ +3.9%
+4.5% +5.8%
6
Source: Bank of Italy
11% 12% 13% 12%
12%
10.8%
8.6% 8.1% 8.0%
7.2%
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
The EU commission
forecasts Italian real
GDP at +0.9% in 2016
and 2017, and +1.1% in
2018, lowest in the EU
Unemployment rate
stable at 12% in Q3 ‘16
New lending declined in
2016 (-3.6%), only Q4
had a positive growth
rate (+0.2%)
Late paying companies
continue to decline, with
Q4 being the best result
since 2012
Default rate on loans
and bankruptcies show
continuing improvement
versus the recent past,
reflecting the healthier
condition of SMEs
Growth rate compared to the
previous quarter
New lending volumes to corporates 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
50
100
150
200
2008
2009
2010
2011
2012
2013
2014
2015
2016
5.8% 12.3%
8.9% (11.7%)
(16.4%)
Source: Osservatorio Cerved
3.0% 3.5% 3.7% 3.7% 3.6%
Source: Osservatorio Cerved, Bank of Italy
Q4
(0,7)% Q4
(0,1)%
Q4
(0,1)%
Q4
0,2%
Q4
0,2%
Source: ISTAT, OECD
YoY -0.4%
YoY -1.7%
YoY -2.8%
Source: ISTAT
-41%
YoY +0.8%
Unemployment as % of total working
population
2012 2013 2014 2015
Note: figures and estimates are subject to periodical revisions
2016
YoY +1.0%
2012 2013 2014 2015 2016
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
7
Table of Contents
Business Review 2
Financial Review 3
Appendices 4
Highlights 1
8
Total
Snapshot of 2016 Divisional Results
Credit Info
Financial Inst.
Credit Info
Corporate
Credit Management
Marketing Solutions
125 127
142 148
+1.0%
+4.5%
+13.0%
+52.7%
+6.6% (+4.1% organic)
+1.4%
+25.1%
+38.0%
+5.4% (+3.9% organic)
6 8
19 24
14 21
75 85
F.I.: limited contraction of business
information, offset by other segments
Corporate: successful impact of sales
force revamp & new products
EBITDA growth rate below Revenues
mainly due to lower margins of faster-
growing segments
Revenues: higher collection rates and
cross-selling; limited AuM inflows and
weak corporate receivables segment
EBITDA margin growth from mix,
collection and operational improvements
Revenues: high single digit organic
growth plus impact of PayClick
EBITDA margins stable organically,
decline due to PayClick mix effect
Drivers Adjusted EBITDA1) Revenues Area
145 147
Consolidated and divisional Revenues and EBITDA in line with company guidance, also on an organic basis
Note: 1) 2016 Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan
+2.8%
9
Business Review – Topics
Operational and Strategic Update for 2016 and Key Actions for 2017
Business
Corporate
Credit Information – Financial Institutions
Credit Information – Corporate
Credit Management
Marketing Solutions
Leverage and Dividends
Investor Relations
Mergers & Acquisitions
10
Non residential RE appraisals
Evolution of monitoring platform
Business Process Outsourcing Platform
(Mortgages)
Integrated offering with Experian
(Scoring, Decision Analytics)
Evolution of Cerved Group Score
(e.g. integration with RE data)
Revenues +1.0% in 2016 with growth in Real Estate and other segments offsetting minor
decline in Business Information
Business Information mainly impacted by renewals and volumes; no impact to date
from bank consolidation which is expected in the medium term
Real Estate appraisals segment continues to yield strong growth, also thanks to market
share gain, and is expected to continue to expand in the medium term
Focus on innovation (data sources, scoring models, etc.) and product range expansion
Credit Information – Financial Institutions
Another positive year for the Financial Institutions division
Business
Corporate
Revenues Breakdown 2012-2016 (€m)1) Selected innovation and product expansion initiatives
89 88 83 83 81
24 25 26 29 31
15 14 13 13 14
2012 2013 2014 2015 2016
127 126 122 125 127
(1.9%)
%’16 vs’15
6.7%
6.6%
1.9%
(2.1%)
Note: 1) Breakdown in 2015 impacted by client reclassifications
Business
Information
Real
Estate
Ratings &
Analytics
11
4.5% Revenue growth in 2016, with 4.3% growth in the sale of pre-paid points and 5.1%
growth in consumption; lost points substantially stabilized after drop in 2015
2016 results confirm the positive impact of the sales force revamp, which is a
continuous effort expected to bring additional results in the medium term
Strong focus on continuous product evolution in order to best match the needs of the
different customer segments, with further product launches in 2017
Credit Information – Corporates
Back to growth, in line with Strategic Outlook
Business
Corporate
Consumption of Credit Information Points & Services 2016 vs 2015 1)
Note: 1) Consumption of points and services in 2016 compared to 2015 for credit information products by c. 20k corporate clients
Cerved Credibility (credit on self)
Cerved app for Salesforce.com
(CRM integration)
NEW Cerved Credit Suite (Q2 ‘17)
Integration of Credit Collection features
into Credit Info platforms
Industry specific solutions & value
propositions (e.g. insurance, utilities)
Selected product innovations in 2016 and 2017
4.0% 2.9%
6.2% 5.1%
Lost
Clients
Existing
Clients
New Clients Y-o-Y
Consumption
12
13.0% increase in Revenues and 25.1% increase in Adjusted EBITDA, with margin
expansion to 28.8% from 26.0% in 2015
Solid results achieved in spite of (i) limited net inflows (AuMs moved from €12.5bn to
€13.3bn), (ii) contraction in Consumer Finance and Corporate segment
Improvements in collection rates on most portfolios and solid growth in Legal Services
Good market momentum on NPL activities by Banks, expected to yield AuM growth in
coming quarters
Solid growth in line with expectations despite limited inflow of new NPLs during calendar 2016
Evolution of AuM in 2016 (€bn) Revenues Breakdown 2016 (€m)
Credit Management Business
Corporate
Credit
Workout
49%
Corp.
11%
Utilities &
Finance
Co's
13%
Asset
Remark'ng
14%
Legal
Services
13%
Receivables
Banks &
Investors
(NPLs)
12.5
1.3
2.9
0.8
13.3
FY 2015 Interrupted
Portfolios
New
Portfolios
Organic
Reduction
FY 2016
Note: Receivables amounted to €0.7bn and €0.6bn in 2015 and 2016, respectively
13
Credit Management – Business Development
Partnership with Banca Monte dei Paschi di Siena
Business
Corporate
Transaction currently on hold due to State intervention on BMPS, leading to a review of
its strategy regarding stock and future flow of NPLs
Cerved seeking to enter into alternative transactions underpinned by a strong industrial
logic in line with BMPS’ strategic goals
Letter of Intent with Barclays
Letter of intent signed with Barclays on 7 February 2017, closing expected in Q3 2017
Cerved to act as coordinator and servicer of €12bn performing mortgage portfolio
The transaction significantly reinforces Cerved’s position on performing loan servicing
NPL disposal/ outsourcing activities by Banks
Significant activity from numerous Italian banks to sell and/or outsource their NPLs
Largest publicly known transactions are €8-9bn from Vicenza-Veneto, €9-10bn from the
Resolution Vehicle “ReV” (Etruria-Marche-Chieti-Ferrara) and €2.5bn from Intesa
Numerous smaller initiatives from other banks are currently under way
14
Marketing Solutions Market Map Revenues Breakdown 2016 (PF FY, €m)
Marketing Solutions
Organic performance in line with expectations, coupled with PayClick acquisition which further boosted growth
Business
Corporate
2016 results in line with strategic outlook with Revenues +52.7% and EBITDA +38.0%
Product mix moving toward Performance, Database & Platform and Marketing projects
Successful integration of PayClick which grew Revenues low double digit in FY 2016,
thanks also to cross-selling on Cerved SME clients
Strategy aimed at exploiting attractive market conditions with low penetration on SMEs,
highly fragmented competition, cross-selling opportunities and bolt-on M&A deals
33%
36%
11%
20%
Database &
Platforms
Performance
(PayClick)
Competitive
Analysis
Marketing
Projects
Research & Database
Performance Leads & Contact
B2B
B2C Potential expansion
Potential expansion
Potential
expansion
15
2.9x
3.1x
3.3x
3.2x 3.3x
3.1x
2.9x 2.9x
Q1
'15
Q1
'16
Q2
'15
Q2
'16
Q3
'15
Q3
'16
Q4
'15
Q4
'16
Net Debt Bridge1) Quarterly Leverage 2015 vs 2016
Leverage and Dividends
Leverage in line with targets allows for attractive dividend payout
Leverage ratio of 2.9x at year-end 2016 (2.9x year-end 2015, excluding non-recurring
Forward Start costs), in line with leverage target as per the Investor Day presentation
Board of Directors proposed total dividend payment of €48.2m (+7.4% versus €44.85m
paid in May 2016), entirely attributable to ordinary progressive dividend (52% of 2016
Adjusted Net Income)
No distribution of special dividend in order to finance M&A strategy and share
buybacks, in line with strategic outlook
Corporate
Business
537 523 (144)
29 27
44 28 2
Ne
t D
eb
t
20
15
Op
. C
ash
Flo
w
Ca
sh-In
tere
sts
Ca
sh-T
axe
s
Ne
t d
ivid
en
ds
M&
A
Oth
er
& N
on
-
Re
cu
rrin
g
Ne
t D
eb
t
20
16
Note: 1) Refinancing cash-out already included in Net Debt 2015 due to the inclusion of €37.3m of non-cash items
16
Qualitative Target List Deals closed in 2016
Mergers & Acquisitions
Continuous effort to complement organic growth, strengthen Cerved’s positioning, and enter new adjacent markets
4 deals closed during the course of FY 2016 for a total cash outflow of €18.9m
Focus on potential transaction with BMPS, as well as completing other transactions
currently under investigation, both bolt-on and of larger scale
We confirm Investor Day guidelines in terms of target sectors: focus on all of Cerved’s
divisions, with strong interest in adjacencies, in Italy
Corporate
Business
CI
CM
BI
Adj.
MS
Advanced Preliminary Status
Mo
re
Less
Eff
ort
Deal closed
in 2016 Division Price (€m)
BHW Italia (branch) Credit Mgmt 0.1m
ClickAdv (70%) Mktg Solutions 14.1m
Major 1 (55%) Credit Info 1.9m
Fox & Parker (branch) Credit Info 2.8m
Total 18.9m
17
Financial Calendar and Tentative Conferences and Roadshows in 2017
Investor Relations
Continuing effort to provide investors with more visibility and information on the Cerved investment opportunity
Cerved ranks among very few Italian public companies with 100% free float
Focus on increasing analyst coverage (currently 12) to attract new investors and
positively impact trading volumes
Rich agenda with conferences and roadshows scheduled during the course of 2017
Corporate
Business
Date Event Venue
Feb 27-28 Roadshow (HSBC) London
Mar 29-30 Roadshow (tbc) Benelux
Mar 31 Equity Conference (HSBC) Paris
Apr 13 Annual General Meeting – Cerved Milan
Apr 28 Q1 Results 2017 – Cerved Conf call
May 10 Business Services Conference (JPM) London
May 11 Roadshow (tbc) Paris
May 16 Pan European MidCap Conf. (UBS) London
May 22 European Conference (Berenberg) New York
May 23-24 Roadshow (tbc) NY/ Boston
May 23 Italian Equity Conference (Kepler) Milan
Jun 26 Business Services Conference (GS) London
Date Event Venue
Jun 27 CEO Conference (Mediobanca) Milan
Jul 27 H1 Results 2017 – Cerved Conf call
Jul 31 Roadshow (tbc) Nordic
Aug 1 Roadshow (tbc) London
Sep 6-7 Roadshow (tbc) London/ Swiss
Sep 29 Business Services Conf. (JPM) Milan
Oct 8-9 Roadshow (tbc) Madrid/ Paris
Oct 27 9M Results 2017 – Cerved Conf call
Nov 6-8 Roadshow (tbc) Boston/Toro-nto/Chicago
Nov 28 Business Services Conference (DB) London
Dec 4 Mid Cap Conference (Berenberg) Pennyhill
18
Financial Review 3
Table of Contents
Appendices 4
Highlights 1
Business Review 2
19
Group Revenues
Revenue Bridge (2015 – 2016, €m)
Revenues (€m) and Revenue growth (%)
313.5 331.3 353.5
377.0
2013 2014 2015 2016
353.5
377.0
1.3 6.3
9.7 7.3 (1.2)
Revenues
2015
CI - Financial
Institutions
CI -
Corporates
Credit
Management
Marketing
Solutions
Other & Conso
clearing
Revenues
2016
Credit Information
+6.6% / 4.1%
+6.2% / 2.7%
% / % Total Growth % / Organic Growth %
20
170.8
179.3 180.0
2.1
4.9 2.2 (0.7)
EBITDA
2015
Credit
Information
Credit
Management
Marketing
Solutions
Adjusted EBITDA
2016
Impact
PSP 2019-2021
EBITDA
2016
151.5 160.1 170.8 180.0
2013 2014 2015 2016
Group Adjusted EBITDA1)
EBITDA Bridge (2015 – 2016, €m)
Adjusted EBITDA (€m) and Adjusted EBITDA margin (%)1)
48.3% 48.3%
% / % Total Growth % / Organic Growth %
+5.4% / 3.9%
47.8% 48.3%
Note: 1) 2016 Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan
+6.2% / 4.8%
21
12.8 14.7 13.8
21.1
2013 2014 2015 2016
52.7%
Note: 1) Breakdown between Corporates and Financial Institutions slightly different from past figures due to client reclassifications 2) 2016 Adjusted EBITDA excludes provisions of €0.7m related to the Long Term Incentive Plan
Group Divisional Performance
Credit Information Credit Management Marketing Solutions
126.3 122.0 125.4 126.6
138.2 142.7 141.7 148.1
264.5 264.7 267.1 274.7
2013 2014 2015 2016
Re
ve
nu
e
Ad
just
ed
EB
ITD
A2)
139.3 142.1 145.4 147.5
2013 2014 2015 2016
36.6 53.3
75.0 84.7
2013 2014 2015 2016
7.6 11.2
19.5 24.4
2013 2014 2015 2016
4.7 6.8 5.9
8.2
2013 2014 2015 2016
36.5%
45.9%
20.7%
21.0%
52.7% 53.7% 54.4%
Fin. Inst.
Corp.
% YoY Growth %
4.0%
13.0%
43.1%
0.5% 2.8%
38.0% 12.6%
25.1%
60.3%
Adjusted EBITDA margin % % CAGR
38.6%
28.8% 53.7%
%
1.4%
26.0%
42.7%
1)
2.2%
22
€m 2013 2014 2015 2016
Revenues 313.5 331.3 353.5 377.0
% growth (YoY) 7.9% 5.7% 6.7% 6.6%
Adjusted EBITDA 151.5 160.1 170.8 180.0
% Revenues 48.3% 48.3% 48.3% 47.8%
EBITDA 151.5 160.1 170.8 179.3
Depreciation & Amortization (23.3) (25.1) (28.5) (30.6)
EBITA 128.2 135.0 142.3 148.7
PPA Amortization (39.4) (42.9) (45.8) (47.4)
Non recurring income and expenses (7.4) (4.5) (3.8) (6.5)
EBIT 81.4 87.6 92.8 94.8
Financial income 0.8 1.1 1.1 0.8
Financial expenses (59.6) (54.6) (43.2) (19.5)
Non recurring financial expenses - (10.1) (52.4) (0.5)
PBT 22.6 24.0 (1.7) 75.5
Income tax expenses (14.7) (12.0) 5.3 (22.4)
Non recurring Income tax expenses - - - (4.5)
Reported Net Income 8.0 12.0 3.6 48.7
Adjusted Net Income 43.0 55.0 68.5 92.0
of which: Minorities 1.1 1.4 2.5 1.9
Summary Profit and Loss (€m)
Summary Profit and Loss
Adjusted Net Income increases
+34.2% versus the prior year
The Adjusted EBITDA is calculated
before €0.7m non-cash charge
for the Long Term Incentive Plan
(first-time event)
Increase in PPA amortisation
reflecting recent M&A activity.
€18.1m attributable to database
amortization will fall to €3.0m in
2017 and zero thereafter
Financial expenses more than
halved thanks to the refinancing
in January 2016
Non recurring expenses include
€4.0m for layoffs and personnel
restructuring (eg. Finservice),
€1.0m non-compete for the prior
CEO, and €1.6 for M&A-related
activities
Key highlights
23
1.3 0.7 2.0 1.7
151.5 145.3 139.8
154.9
(30.1) (32.4) (30.0) (38.5)
(81.9) (73.3) (74.0) (77.3)
40.8 40.4 37.8 40.9
2013 2014 2015 2016
Inventories Trade receivables Trade payables
Deferred revenues Net Working Capital
Net Working Capital
13.0%
Net Working Capital (€m)
NWC as % of Revenues %
11.7% 10.7% 10.8%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
Net Working Capital at 10.8% of
LTM Revenues (proforma for
acquisitions) in line with 2015
Trade Receivables increased by
€15.1m versus 2015, largely due
to the sustained growth of the
Credit Management division
In the medium term NWC is
expected to expand due to
continuing growth in the Credit
Management division
Trade Payables increased by
€8.6m, also due to €2.6m trade
payables related to the new
Cerved HQ
Deferred Revenues increased
by €3.2m due to increased sales
of prepaid points and the
consolidation of Fox & Parker
24
€m 2013 2014 2015 2016
Adjusted EBITDA 151.5 160.1 170.8 180.0
Net Capex (26.6) (28.2) (31.6) (33.5)
Adjusted EBITDA-Capex 125.0 131.9 139.1 146.5
as % of Adjusted EBITDA 82% 82% 81% 81%
Cash change in Net Working
Capital(24.7) 8.2 3.0 (4.6)
Change in other assets /
liabilities / provisions7.3 (13.9) (6.0) 2.0
Operating Cash Flow1) 107.5 126.2 136.1 144.0
Operating Cash Flow (€m)
Operating Cash Flow
Note: 1) Based on Adjusted EBITDA
Key highlights
Operating Cash Flow increased
+5.8%, from €136.1m to €144.0m
Operating Cash Flow is adjusted
for €4.8m capex for the new HQ
and €2.6m residual capex
payables
The bulk of the improvement in
Operating Cash Flow arises from
the underlying growth in EBITDA,
with a minor absorption from
working capital items and
changes in other assets and
liabilities
Excluding the new HQ, capex
increased by €1.9m reflecting
the development of new
products and the enlarged
perimeter
25
€m 2014 2015 H1'16 2016
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 19.7
Accrued Interests 17.3 17.3 5.7 3.9
Gross Debt 551.3 589.1 609.0 581.3
Cash (46.1) (50.7) (30.0) (48.5)
Capitalized financing fees 2) (17.6) (1.5) (10.4) (9.3)
IFRS Net Debt 487.6 536.8 568.6 523.4
Net Debt/ LTM Adj. EBITDA 3) 3.0x 3.1x 3.2x 2.9x
Non-recurring impact of "Forward
Start" transaction- 37.3 - -
Adjusted Net Debt 487.6 499.6 568.6 523.4
Adj. Net Debt/ LTM Adj. EBITDA 3) 3.0x 2.9x 3.2x 2.9x
Financial Indebtedness
Financial Indebtedness table (€m)
IFRS Net Debt of €523.4m at the
end of December 2016
Leverage ratio in FY’16 at 2.9x
based on LTM Adjusted EBITDA
(proforma for acquisitions)
Bank facilities decreased to
€557.6m due to the amortization
of €2.4m on the Term Loan A
tranche
Revolving Credit Facility drawn
for €25.0m in H1’16 to fund the
acquisition of PayClick, and
entirely reimbursed in H2
Accrued interests at the end of
the year decline due to
different interest payment
periods and lower rates
Net Debt includes €2.2m cash
outflow related to the new
Cerved HQ
1) FY’15, H1’16 and FY’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
26
Table of Contents
Appendices 4
Financial Review 3
Highlights 1
Business 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
27
126.6
148.1 21.1
84.7
Revenues FY 2016
(€ and % Group)
Credit Information
Corporate Financial Institution
+6.3% +57.7% +11.7% (2.0%)
39%
22%
5%
33%
Credit Management Marketing Solutions
Scope of Business
Growth ‘16 vs ’15
CAGR % ‘11-’15
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 NPLs and
problematic receivables on
behalf of banks, investors, finance
companies, utilities and corporates
+4.5% +13.0% +52.7% 1.0%
The Italian Leader in the Credit Information Market
0 73
132
0 128 142
109 189 255
191 191 191
0 103 188
16 159 189
221 221 221
92 188 210
28
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 Credit Management Marketing Solutions2)
The Italian Leader in the Credit Information Market
29
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
30
Group Revenues and Adjusted EBITDA – Quarterly Analysis
171 180
FY
2015
2016
353 377
FY
2015
2016
Revenues (€m)
Adjusted EBITDA(€m)1)
83
95
78
98
88
99
83
106
Q1 Q2 Q3 Q4
39
45
36
51
42
47
38
53
Q1 Q2 Q3 Q4
Total Growth % / Organic Growth %
+5.0% / +3.1%
% / %
+6.6% / +3.9%
+4.6%/ +3.4%
+6.1% / +3.7%
+6.1% / +3.8%
+6.6%/ 4.1%
+5.4% / 3.9%
+7.6%2) / +6.3%
Note: 1) Adjusted EBITDA excludes provisions related to the Performance Share Plan 2019-2021 (€0.3m in 9M’16 and €0.7m in FY’16) 2) Including impact of provisions for the Performance Share Plan 2019-2021 the EBITDA growth would have been 6.8% in Q3’16 and 3.3% in Q4’16
+8.7% / +5.5%
+4.0%2) / +2.7%
31
31 32 30 33
125
32 32 30 33
127
Rev- Q1 Rev - Q2 Rev - Q3 Rev - Q4 Rev - FY
Credit Information – Revenues (€m)
Credit Information – Quarterly Analysis
66 70 59 72
267
69 71 61 74
275
Rev CI - Q1 Rev CI - Q2 Rev CI - Q3 Rev CI - Q4 Rev CI - FY
2015
2016
Credit Information – Financial Institutions – Rev (€m)
2.7%
35 38 29 39
142
37 39 31 42
148
Rev - Q1 Rev - Q2 Rev - Q3 Rev - Q4 Rev - FY
2015 2016
Credit Information – Corporate – Rev (€m)
36 37 31 41
145
37 37 32 42
147
EBITDA - Q1 EBITDA - Q2 EBITDA - Q3 EBITDA - Q4 EBITDA - FY
2015
2016
Credit Information – Adjusted EBITDA (€m)1)
0.3%
3.5% 1.6%
0.2% 2.7%
6.0% 2.7%
3.0%
3.1%
2.8%
1.2%
1.0%
5.1% (0.1%)
4.2%
4.5%
3.2%
0.3%
1.4%
Note: 1) Adjusted EBITDA excludes provisions related to the Performance Share Plan 2019-2021 (€0.3m in 9M’16 and €0.6m in FY’16)
32
Credit Mgmt and Marketing Solutions – Quarterly Analysis
1.0 1.4 0.9
2.6
5.9
1.1 2.0 1.6
3.4
8.2
EBITDA
Q1
EBITDA
Q2
EBITDA
Q3
EBITDA
Q4
EBITDA
FY
2015
2016
2.4
6.3 4.2
6.6
19.5
3.8
7.6 5.3
7.7
24.4
EBITDA
Q1
EBITDA
Q2
EBITDA
Q3
EBITDA
Q4
EBITDA
FY
2015
2016
Marketing Solutions – Revenues and Adjusted EBITDA (€m)2)
14.1 21.9 17.2 21.7
75.0
17.4 23.9
18.3 25.1
84.7
Rev
Q1
Rev
Q2
Rev
Q3
Rev
Q4
REV
FY
Credit Management – Revenues and Adjusted EBITDA (€m)1)
2.9 3.4 2.8 4.7
13.8
3.1 5.7 4.7
7.6
21.1
Rev
Q1
Rev
Q2
Rev
Q3
Rev
Q4
REV
FY
9.0% 23.3% 21.1%
5.1%
69.7%
7.6%
48.6%
64.7%
74.8%
6.3%
13.0%
26.7%
25.1%
54.9% 15.7%
16.7%
63.1%
52.7%
38.0%
31.6%
Note: 1) Adjusted EBITDA excludes provisions related to the Performance Share Plan 2019-2021 (€0.0m in 9M’16 and €0.1m in FY’16) 2) Adjusted EBITDA excludes provisions related to the Performance Share Plan 2019-2021 (€0.0m in 9M’16 and €0.0m in FY’16)
33
€m 2013 2014 2015 2016
Total Revenues (including other income) 313.7 331.6 353.7 377.1
Cost of raw material and other materials (2.8) (7.0) (8.3) (7.4)
Cost of Serv ices (77.6) (76.3) (78.9) (84.9)
Personnel costs (67.2) (73.7) (81.5) (91.7)
Other operating costs (8.1) (8.2) (8.5) (8.6)
Impairment of receivables and other provisions (6.4) (6.3) (5.7) (4.5)
Adjusted EBITDA 151.5 160.1 170.8 180.0
Performance Share Plan - - - (0.7)
EBITDA 151.5 160.1 170.8 179.3
Depreciation & amortization (23.3) (25.1) (28.5) (30.6)
EBITA 128.2 135.0 142.3 148.7
PPA Amortization (39.4) (42.9) (45.8) (47.4)
Non-recurring Income and expenses (7.4) (4.5) (3.8) (6.5)
EBIT 81.4 87.6 92.8 94.8
PBT 22.6 24.0 (1.7) 75.5
Income tax expenses (14.7) (12.0) 5.3 (22.4)
Non-recurring Income tax expenses - - - (4.5)
Reported Net Income 8.0 12.0 3.6 48.7
Adjusted Net Income 43.0 55.0 68.5 92.0
of which: Minorities 1.1 1.4 2.5 1.9
Profit and Loss
Source: Company Information, 2013 as “Added data”, 2014 as “Aggregated data”; for further details refer to Cerved Information Solutions S.p.A. Annual Reports
34
€m 2013 2014 2015 2016
Intangible assets 501.1 472.4 459.7 423.7
Goodwill 708.6 718.8 718.8 732.5
Tangible assets 16.6 17.3 16.4 19.8
Financial assets 14.9 14.9 8.3 8.7
Fixed assets 1,241.3 1,223.4 1,203.1 1,184.7
Inventories 1.3 0.7 2.0 1.7
Trade receivables 151.5 145.3 139.8 154.9
Trade payables (30.1) (32.4) (30.0) (38.5)
Deferred revenues (83.1) (73.3) (74.0) (77.3)
Net working capital 39.6 40.4 37.8 40.9
Other receivables 5.8 7.1 7.6 7.7
Other payables (20.4) (26.1) (32.2) (53.9)
Net corporate income tax items (27.2) (18.8) (1.0) 0.3
Employees Leaving Indemnity (10.9) (13.1) (12.5) (13.1)
Provisions (15.0) (11.1) (8.5) (7.3)
Deferred taxes (1) (119.8) (109.1) (88.7) (91.9)
Net Invested Capital 1,093.3 1,092.7 1,105.6 1,067.4
IFRS Net Debt (2) 722.2 487.6 536.8 523.4
Group Equity 371.1 605.1 568.8 543.9
Total Sources 1,093.3 1,092.7 1,105.6 1,067.4
Balance Sheet
Source: Company Information, 2013 as “Added data”, 2014 as “Aggregated data”; for further details refer to Cerved Information Solutions S.p.A. Annual Reports (1) Non cash item; (2) Net of capitalized financing fees
35
Cash Flow
Source: Company Information, 2013 as “Added data”, 2014 as “Aggregated data”; for further details refer to Cerved Information Solutions S.p.A. Annual Reports (1) Includes €2.2m cash outflow for the new headquarters
€m 2013 2014 2015 2016
Adjusted EBITDA 151,5 160,1 170,8 180,0
Net Capex (26,6) (28,2) (31,6) (33,5)
Adjusted EBITDA-Capex 125,0 131,9 139,1 146,5
as % of Adjusted EBITDA 82% 82% 81% 81%
Cash change in Net Working Capital (24,7) 8,2 3,0 (4,6)
Change in other assets / liabilities 7,3 (13,9) (6,0) 2,0
Operating Cash Flow 107,5 126,2 136,1 144,0
Shareholder's fees - - - -
Interests paid (29,1) (51,7) (40,3) (29,2)
Cash taxes (18,4) (24,1) (40,2) (27,3)
Non recurring items 1) 0,1 (3,4) (3,2) (8,8)
Cash Flow (before debt and equity movements) 60,1 46,9 52,3 78,7
Net Dividends (0,1) 1,0 (40,1) (44,4)
Acquisitions / deferred payments / earnout (509,4) (20,9) (23,5) (27,9)
IPO Capital Increase (net of IPO costs) - 220,2 - -
Other - (0,1) (1,1) -
Debt drawdown / (repayment) (254,5) - -
"Forward-Start" Refinancing 482,8 - - (35,5)
Net Cash Flow of the Period 33,5 (7,5) (12,3) (29,1)
36
€m 2013 2014 2015 2016
Reported Net Income 8.0 12.0 3.6 48.7
Non recurring income and expenses 7.4 4.5 3.8 6.5
Non recurring financial charges - 10.1 52.4 0.5
Capitalized financing fees 4.1 3.4 2.9 2.2
PPA Amortization 39.4 42.9 45.8 47.4
IRS termination - 1.0 - -
Fiscal Impact of above components (15.8) (18.9) (28.4) (17.7)
Adjustments 35.1 43.0 76.4 38.8
Impact of IRES change treatment - - (11.5) -
Non recurring income tax expenses - - - 4.5
Adjusted Net Income 43.0 55.0 68.5 92.0
Adjusted Net Income Bridge
Source: Company Information, 2013 as “Added data”, 2014 as “Aggregated data”; for further details refer to Cerved Information Solutions S.p.A. Annual Reports
Cerved Information Solutions S.p.A. Via San Vigilio, 1 - 20142 Milano
Tel. +39 02 77541 Fax +39 02 76020458
company.cerved.com
