Results to 31 December CERVED INFORMATION SOLUTIONS S.p.A.

Transcription

1 Results to 31 December 2014 CERVED INFORMATION SOLUTIONS S.p.A. March 13th, 2015

2 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. 1

3 Today s Presenters Gianandrea De Bernardis Chief Executive Officer 9 years at Cerved 16 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 Giovanni Sartor Chief Financial Officer 6 years at Cerved 6 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 2 years at Cerved 12 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 2

4 Table of Contents 1 Highlights 2 Business Review 3 Financial Review 4 Trading Outlook 5 Appendices 3

5 Executive Summary Macro Highlights 2014 GDP change of -0.4% vs earlier expectations of +0.7% Current forecasts point to GDP growth of % in ) Regardless, Cerved confirmed its resilient business model Cerved Financial Results Sales and EBITDA up 5.7% and 5.6% vs 2013, respectively Operating Cash Flow up 17.3% vs 2013 Adjusted Net Profit up 27.7% and Leverage at 3.0x EBITDA M&A Activity Recus, RLValue and SpazioDati closed in 2014 Creval Portfolio Partnership expected to close in April 2015 M&A pipeline remains attractive and focussed on Italy Dividend & Trading Outlook Dividend proposal of Euro 40m payable in May 2015 Trading Outlook continuing growth in ) Source: Bank of Italy, OECD, Confindustria 4

6 Consistent Growth and Cash Flow Generation Consistent Growth EBITDA Growth High Cash Flows Revenue ( m) EBITDA ( m) EBITDA Capex ( m) +7.4% / 3.9% +5.7%/ +3.8% +5.1% / 3.8% +5.6%/ +4.5% +5.2% +5.5% % / % Total Growth % / Organic Growth % Consistent Revenue, EBITDA and Cash Flow growth despite macroeconomic conditions Note: 2011/2012 EBITDA adjusted for shareholder s fees and 2011 for reviewing of accounting policy related the database acquisition costs 5

7 Cerved Market share 2013 Cerved Position Italian market size 2013 ( mm) (CAGR 11-13) % Cerved 2014 Rev s (CAGR 11-14) Market Leadership Credit Information Credit Management Marketing Solutions 43% 37% 16% 4% (+8.5%) (-3.3%) (+63.7%) (+18.4%) 290 (+3.6%) 359 (-4.3%) 721 (+8.5%) 627 (+3.9%) Credit Information Consumer Information 103 Rating & Analytics 39 Real Estate 97 NPLs 502 Consumer 321 Business Information 120 Corporate receivables 219 Corporates 305 Credit Information Corporates Credit Information Financial Institutions Credit Management Marketing Solutions No.1 No.1 No. 1 1) No. 9 42% 42.7% 7.3% 1) 2% 4.2% Source: PwC 1) No. 1 player In the non-captive market, considering pro-forma revenues in 2013 which include Recus and Tarida 6

8 Macro Highlights Italian GDP Italian unemployment New lending Key highlights Key Economic Indicators Growth rate compared to the previous quarter Q4-0,6% YoY -2.8% Q1 Q2 Q3 Q Q4 0,0% YoY -1.7% Q1 Q2 Q3 Q Q4 0,0% YoY -0.4% Q1 Q2 Q3 Q Unemployment as % of total working population 11,3% Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 12,4% 12,5% Q1 Q2 Q3 Q New lending volumes in billions (quarterly) Source: ISTAT/OECD Source: ISTAT Source: Bank of Italy All key indicators show positive trends, albeit at a very early stage Flat GDP in Q4 after 3 negative quarters The jump in new lending volumes in Q4 includes the renewal and renegotiation of existing facilities Late paying companies Bankruptcies NPLs Key highlights Cerved Proprietary Data % of companies paying over 60 days late versus contractual terms 10,8% 8,6% 8,1% Number of proceedings (seasonally adjusted) and growth rates versus same quarter of previous year % 7.2% Default rate on outstanding loans (Q3 and Q are forecasts; Cerved estimates on Bank of Italy data) 3,0% 3,5% 3,7% Cerved proprietary data also shows an improvement in key variables such as late paying companies and bankruptcy rates Q1 Q2 Q3 Q Q1 Q2 Q3 Q Source: Osservatorio Cerved Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Source: Osservatorio Cerved Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Source: Osservatorio Cerved, Bank of Italy The growth in NPLs continues at a lower pace, as expected from numerous sources 7

9 Business Model & Strategy: Confirmed 1 Resiliency Credit Info - Consolidate position in financial institutions Credit Info and Marketing Services Continue to exploit the underpenetrated corporate market 2 Growth Credit Management - Grow AUM and keep focused on collection Continue to invest in new product development and innovation Exploit opportunities in adjacent markets 3 Cash flow Add-on opportunities in Italy and abroad 8

10 Table of Contents 1 Highlights 2 Business Review 3 Financial Review 4 Trading Oultook 5 Appendices 9

11 Business Review Topics Operational and Strategic Update for 2014 and Key Actions for 2015 Credit Information - Corporate Business Credit Information Financial Institutions Credit Management Marketing Solutions EBITDA & Profitability Finance Financial Reporting, Working Capital and Capital Structure M&A and IR Mergers & Acquisitions Investor Relations 10

12 Credit Information Corporates Business Finance M&A and IR Investing in the business to improve performance in the medium term Revenue growth of 3.3% in 2014 impacted by weak economy, integration of Experian Data Services (EDS) and the launch of Cerved s new ERP system Drivers of consumption (1) in 2014 were positive and led to 3.3% growth vs 2013: churn declined vs 2013, new clients more than offset churn, and renewals were positive Numerous new products are being launched or are in the pipeline Launched a strategic project to improve sales force efficiency and effectiveness Consumption of Business Information Points 2014 vs 2013 (1) Corporate Revenues ( m) 2) % (4.1%) 2.0% 5.4% Lost Clients Existing Clients New Clients Y-o-Y Consumption Lince Honyvem EDS 1) Consumption of points in 2014 compared to 2013 for business information products by c. 22k corporate clients covered by the field sales network 2) 2011 proforma for Honyvem 11

13 (16%) (13%) (10%) (2%) (6%) (5%) +6% Credit Information Financial Institutions Business Finance M&A and IR After a tough 2014 the environment appears less challenging in 2015 Tough year in 2014 with Revenues declining 3.4% due to large contract renewals coupled with lower new bank lending Lower pressure expected in 2015 with absence of large business information contract renegotiations with large banks, together with improved new bank lending prospects Banche Popolari consolidation impact should be limited and diluted over time; a consolidation in the Italian banking system will occur in the medium to long term CI Financial Institutions Breakdown 2014 Bank New Lending from 2008 ( bn) 1) 25% Business Information Real Estate Rating & Analytics % 15% 10% 5% 0% (5%) (10%) YoY change (%) (15%) (20%) 1) Source: Bank of Italy 12

14 Credit Management Business Finance M&A and IR Impressive growth and diversification from 2011 to 2014 with Revenue CAGR of 64% 2014 was another record year with Revenues growing 46% and EBITDA 47% Cerved Credit Management is now the #1 independent player in Italy covering: All credit types: personal/corporate, secured/unsecured, large/small All client types: corporates, utilities, financial companies, banks and funds Full value chain: caring, out-of-court settlement, legal services and re-marketing Launched strategic project to focus on performance and integration of operations Credit Management Revenue Breakdown AuM Evolution ( bn) Remarketing Banks & Investors NPLs and Problematic Credits 7,8 10,3 Legal Services Utilities & Financials 0,5 1,3 1,8 Corporates

15 Credit Management (cont d) Business Finance M&A and IR Potential in the market to increase sale and/or outsourcing of bank portfolios Closing of strategic partnership with Creval to manage their NPL portfolio planned in April 2015 Price of 21.7m reflects an EV/EBITDA multiple of 5.5x on expected 2015 EBITDA of 3.9m Credit Management sector growth fundamentals remain solid with banks due to increase pace of NPL disposals or outsourcing Business Map Evolution of NPL Financial Institutions Banks ( bn) 156 7% % E 2015E 2016E 2017E Source: Prometeia 14

16 Marketing Solutions Business Finance M&A and IR Continue to exploit synergies with Corporates on database, clients and sales force 2014 was a record year in terms of Revenue and EBITDA growth of 15% and 45% resp. thanks to revamp of product offering and new go-to-market approach 2015 focus on launching new products and consolidating results to exploit cross-selling opportunities while at the same time reducing cannibalisation Searching M&A opportunities although there are few targets considering market fragmentation and stringent regulation regarding information on private individuals Breakdown of 2014 Revenues Revenues and EBITDA ( m) 14,7 Marketing Platforms Ad-Hoc Projects 8,9 9,9 12,8 6,8 Industrial and Competitor Analysis Database 3,1 3,5 4,7 15

17 EBITDA and Profitability Business Finance M&A and IR Cerved enjoys operating leverage in each of its three divisions Margin improvements in 2014 demonstrated the operating leverage of each division Improvement in Credit Information due to careful cost management and impact of Experian deal Further scope to optimise the cost base and increase efficiency within the group Other Costs Accruals & Bad Debt Sales Agents Operating Expenses ) Labor Expenses Information Services Credit Information EBITDA margins Credit Management EBITDA margins Marketing Solutions EBITDA margins 53,9% 53,4% 52,7% 53,7% 17,0% 17,6% 20,7% 21,0% 34,5% 35,6% 36,5% 45,9% 1) Note: financials related to Cerved Group SpA 16

18 Financial Reporting, Working Capital, Capital Structure Business Finance M&A and IR Busy 2015 for the Financial Division with 3 key projects in place Significant investment to improve and integrate management information systems of acquired companies Launched project to optimise Working Capital and in particular Trade Receivables with objective of improving cash inflows Albeit premature, we are monitoring the opportunity to refinance the 530m of outstanding bonds in January 2016; debt market conditions currently very attractive Bond Redemption Cost Evolution ( m) 60 Senior Subordinated Senior Secured ,6 25,7 21,7 17,8 13,8 13,8 13,8 13,8 25,5 21,5 17,5 9,2 9,2 9,2 9,2 13,5 9,6 9,6 9,6 9,6 4,8 4,8 4,8 4,8 4,6 jan-15 apr-15 jul-15 oct-15 jan-16 apr-16 jul-16 oct-16 jan-17 apr-17 jul-17 oct-17 jan-18 17

19 More Mergers & Acquisitions Business Finance M&A and IR Strategy focused on safe, bolt-on acquisitions in core and adjacent markets in Italy 2014 was a very busy year with 3 closed deals and 1 signed deal Pipeline remains interesting and focused on Italy in current and adjacent sectors. Foreign M&A only at the monitoring phase Seeking adjacencies in which to exploit existing competitive strengths along the lines of the entry into the Credit Management business in 2011 Deal Closed 2014 & Creval Portfolio Partnership (2015) Pipeline 2015 Company Stake Investment Revenues EBITDA M&A Effort and Status Recus SpA 1) 80% 18.8m 15.9m 3.5m BI CM RLValue Srl 1) 100% 1.4m 1.7m 0.4m Adj. Less Effort SpazioDati Srl 33% 1.3m n.a. n.a. MS CI Creval Partnership 2) 100% 21.7m c. 9m c. 3.9m Foreign 1) Actual Revenues and EBITDA for the 12m period ending December ) Closing expected in April 2015; Expected EBITDA for the 12m period ending December 2015 Preliminary Status Advanced 18

20 Investor Relations Business Finance M&A and IR Medium term objective is to prepare Cerved to be a Public Company IR activity focussed on virtuous circle involving analyst coverage, investor meetings and trading volumes 2015 envisages a rich agenda in terms of conferences and non-deal roadshows in Europe and North America Corporate website improved to include numerous new features as per best practice Conferences Scheduled for ) Average Daily Volumes (NOSH k) 2) Date Event Location Mar 25 Mid-Small Caps Conference (DB) London 304 Apr 1 Mid-Small Caps Conference (HSBC) Paris May Business Services Conference (JPM) London Jun Business Conference (Unicredit) Milan Sep 16 Euro Services Conference (UBS) London Oct 2 Italian Conference (JPM) Milan Nov 18 Business Services Conference (DB) London Dec 1 Pennyhill Equities (Berenberg) London Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 1) Tentative dates and events subject to change 2) Excluding 2, 5 and 6 January ) Up to March 11th,

21 Table of Contents 1 Highlights 2 Business Review 3 Financial Review 4 Trading Outlook 5 Appendices 20

22 Group Revenues Revenues ( m) and Revenue growth (%) % / % Total Growth % / Organic Growth % +8.8% / +2.3% +7.9% / +5.7% +5.7% / +3.8% 267,2 290,6 313,5 331,3 Revenue Bridge ( ) ( m) Credit Information 16,7 2,0 (1,0 ) 331,3 313,5 (4,2 ) 4,5 Revenues 2013 CI - Financial Institutions CI - Corporates Credit Management Marketing Solutions Other & Conso clearing Revenues

23 Group EBITDA EBITDA (1) ( m) and EBITDA margin (%) % / % Total Growth % / Organic Growth % +4.9% / +2.3% +4.7% / +4.6% +5.6/ +4.5% 51.6% 49.8% 48.3% 48.3% 138,0 144,7 151,5 160,1 EBITDA Bridge ( ) ( m) 2,8 3,6 2,1 160,1 151,5 EBITDA 2013 Credit Information Credit Management Marketing Solutions EBITDA 2014 (1) FY 2011 EBITDA is adjusted for Database Acquisition Costs and Shareholder Fees; FY 2012 EBITDA only for Shareholder Fees 22

24 Group EBITDA-Capex and Financial Leverage EBITDA-Capex ( m) and EBITDA-Capex margin (%) +5.1% +5.0% +5.5% 39.8% 42.4% 113,2 41.0% 119,0 39.9% 125,0 131,9 % EBITDA-Capex margin (as % or Revenues) % YoY Growth % Net Debt ( m) and Net Debt/ EBITDA 2.2x 1.9x x x 488 x Adjusted Net debt/ebitda 23

25 EBITDA Revenue Group Divisional Performance Credit Information Credit Management Marketing Solutions 2.4% 0.1% ,8 128,8 138,2 142,7 Corp. 63.7% 45.5% 18.4% 15.3% 134,9 127,4 126,3 122,0 Fin. Inst. 12,1 25,0 36,6 53,3 8,9 9,9 12,8 14,7 2.3% 2.0% 75.5% 47.2% 21.0% 30.2% 45.0% 53.9% 53.4% 52.7% 53.7% 20.7% 45.9% 132,9 136,8 139,3 142,1 17.1% 2,1 17.6% 4,4 7,6 11,2 34.5% 35.6% 3,1 3,5 36.5% 4,7 6,8 % % CAGR % YoY Growth % % EBITDA margin 24

26 Credit Information Revenues ( m) and Revenue growth (%) 3.9% 3.2% 246,6 256,2 264,5 CAGR Corporates: 11.2% 3.3% Financial Institutions: (3.2%) (3.4%) 0.1% 264,7 111,8 128,8 138,2 142,7 134,9 127,4 126,3 122,0 Key highlights The Corporate segment grew 3.3% despite the difficult macroeconomic situation, the integration of Experian Data Services and the launch of the new ERP system at YE 2013 The Financial Institutions segment declined by 3.4% and was negatively impacted by the slowdown in new bank lending and the renegotiation and lengthening of certain large contracts in the first half of 2013 EBITDA ( m) and EBITDA margin (%) Key highlights 53.9% 2.9% 53.4% 1.8% 52.7% 2.0% 53.7% The EBITDA generated by the Credit Information division increased by 2.0% compared to 2013, thanks to the cost control activities during the year 142,1 136,8 139,3 132,9 Please also note that the 2013 EBITDA margin had been negatively impacted by the Experian Data Services acquisition which contributed virtually zero EBITDA in 2013 % YoY Growth % % EBITDA margin 25

27 Credit Management Revenues ( m) and Revenue growth (%) Key highlights 12, % 25,0 46.4% 36,6 45.5% 53, Revenues increased 45.5% versus 2013 thanks to the increase in assets under management coupled with the acquisition of Recus 2014 Revenues include 3.4m from Recus (consolidated from 6 October 2014) EBITDA ( m) and EBITDA margin (%) Key highlights 17.0% 2, % 17.6% 4,4 72.4% 20.7% 7,6 47.2% 21.0% 11,2 The EBITDA margin increases to 21.0% from 20.7% thanks to operational benefits deriving from the increased scale of the business 2014 EBITDA includes 0.6m from Recus (consolidated from 21 October 2014) % YoY Growth % % EBITDA margin 26

28 Marketing Solutions Revenues ( m) and Revenue growth (%) 15.3% 29.0% 11.7% 14,7 12,8 8,9 9,9 Key highlights The Marketing Solutions division registered strong Revenue growth in virtue of the successful improvement and widening of its product offering coupled with the restructuring of its sales force A portion of the growth may have cannibalised Corporate Credit Information revenues due to the largely common client base and go to market effort EBITDA ( m) and EBITDA margin (%) 45.0% 32.3% 45.9% 15.1% 36.5% 6,8 34.5% 35.6% 4,7 3,1 3,5 % YoY Growth % % EBITDA margin Key highlights The surge in the EBITDA margin from 36.5% in 2013 to 45.9% in 2014 reflects the strong operating leverage within the Marketing Solutions division 2014 margins also benefited from the multiple sales of projects with a common cost base 2015 margins expected to be lower also due to the launch of the new Marketing+ product 27

29 Summary Profit and Loss Summary Profit and Loss ( m) Key highlights m Total Revenues 267,2 290,6 313,5 331,3 % growth (YoY) 8,8% 7,9% 5,7% EBITDA (1) 138,0 144,7 151,5 160,1 % Revenues 51,6% 49,8% 48,3% 48,3% Depreciation & Amortization (12,0) (16,5) (23,3) (25,1) EBITA 126,0 128,3 128,2 135,0 PPA Amortization (49,5) (53,1) (39,4) (42,9) Non recurring income and expenses (5,0) 2,5 (7,4) (4,5) EBIT 56,5 75,5 81,4 87,6 Earn out cost - (26,8) - - Financial income 1,0 0,9 0,8 1,1 Financial expenses - non recurring (10,1) Financial expenses (26,6) (29,1) (59,6) (54,6) PBT 30,9 20,5 22,6 24,0 I ncome tax expenses (14,0) (15,4) (14,7) (12,0) Reported Net Income 16,9 5,1 8,0 12,0 Adjusted Net Income 66,9 62,6 43,0 55,0 of which: Minorities 0,3 0,8 1,1 1,4 EBITDA margin at 48.3% in 2014, in line with 2013 PPA amortisation includes 18.1m deductible for tax purposes Non-recurring items include 7.6m for the write-down of capitalised financing fees (non cash), 2.5m prepayment fee on the FRNs, 0.6m for IPO roadshow costs, 1.7m for M&A activity, and 1.4m for restructuring Cerved also spent 1.0m to cancel the IRS contracts related to FRNs; this cost was adjusted for in the Adjusted Net Income Adjusted Net Income is adjusted for non-recurring income and expenses, capitalised financing fees, PPA amortisation, and the fiscal impact of such components (ca. 31%) (1) FY 2011 EBITDA is adjusted for Database Acquisition Costs and Shareholder Fees; FY 2012 EBITDA only for Shareholder Fees 28

30 Net Working Capital Net Working Capital ( m) Key highlights 4.0% 4.0% 13.0% 121,3 119,5 10,7 11,6 151,5 145,3 40,8 40,4 135,3 31,0 (26,8) (25,4) (30,1) (32,4) (31,8) (83,8) (82,5) (81,9) (73,3) (73,3) Reported 2014PF ex-m&a Inventories Trade receivables Trade payables Deferred revenues Net Working Capital 11.7% 1) 9.5% 2) % NWC as % of Revenues Excluding Recus and RLValue, NWC as % of Revenues falls to 9.5% in 2014 from 13.0% in 2013 On a proforma basis which assumes Recus and RLValue revenues for all of 2014, NWC increases to 11.7% of Revenues Trade Receivables of 135m (excluding Recus and RLValue for 9.9m) equate to 41% of Revenues showing recovery from ERP-related issues which emerged at YE 2013, but still impacted by growth of Credit Management business and late payers Deferred Revenues show a 9m decline vs YE 2013 due to the impact of commercial policies which adopt more restrictive conditions to be able to renew contracts in advance (1) NWC/Revenues based on Revenues of Recus and RL Value for the entire calendar year 2014 (2) NWC/Revenues of 9.5% excludes Recus and RL Value acquisitions 29

31 Operating Cash Flow Operating Cash Flow ( m) Key highlights m EBITDA (1) 138,0 144,7 151,5 160,1 Net Capex (24,8) (25,7) (26,6) (28,2) EBITDA-Capex 113,2 119,0 125,0 131,9 as % of EBITDA 82% 82% 82% 82% Cash change in Net Working Capital (2) 7,8 (6,1) (24,7) 8,2 Change in other assets / liabilities (7,1) (1,9) 7,3 (13,9) Operating Cash Flow 113,9 111,1 107,5 126,2 Strong increase in Operating Cash Flow which increases 17.3% to 126.2m Despite the decline in Deferred Revenues, the net change in working capital leads to a cash inflow of 8.2m Contribution of Recus and RL Value equal to 1.8m The negative change in other assets and liabilities is mainly related to VAT payments and the distortion created by the launch of the new ERP system at the end of 2013 ( 6m of VAT payments delayed to early 2014) coupled with the change of control of the Cerved Group (creation of the new parent company) (1) FY 2011 EBITDA is adjusted for Database Acquisition Costs and Shareholder Fees; FY 2012 EBITDA only for Shareholder Fees (2) Cash change in Net Working Capital exludes non recurring items, eg Trade Payables related to IPO transaction fees 30

32 Capital Structure Capitalization table ( m) Key highlights m 2013 H1'14 9M' Bonds 780,0 530,0 530,0 530,0 Other financial debt 0,6 0,6 0,4 4,0 Accrued Interests 20,6 17,8 8,0 17,3 Gross Debt 801,1 548,4 538,5 551,3 Cash (50,3) (17,1) (31,1) (46,1) Capitalized financing fees (28,6) (19,1) (18,4) (17,6) Net Debt was 487.6m in December 2014, representing 3.0x EBITDA for the year 3.0x leverage is in line with Cerved s targets for the end of the financial year Deleverage from 30 June to 31 December 2014 equal to 24.5m, despite 21.5m cash outflow for 3 M&A deals IFRS Net Debt 722,2 512,1 488,9 487,6 Net Debt/ LTM EBI TDA 4,8x 3,3x 3,1x 3,0x Adjusted Net Debt (1) 750,8 531,3 507,3 505,2 Adjusted Net Debt/ LTM EBI TDA 5,0x 3,4x 3,2x 3,2x (1) Adjusted Net Debt is calculatd as IFRS Net Debt plus capitalised financing fees 31

33 Table of Contents 1 Highlights 2 Business Review 3 Financial Review 4 Trading Outlook 5 Appendices 32

34 Trading Outlook for 2015 Consolidated Revenues Yearly revenues expected to grow as in the recent past EBITDA Margins Stable at the consolidated level, thanks to operating leverage in each single division coupled with the mix effect M&A Continuing effort to identify accretive bolt-on targets in core and adjacent markets with a focus on the Italian market 33

35 Table of Contents 1 Highlights 2 Business Review 3 Financial Review 4 Trading Outlook 5 Appendices 34

36 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 the markets with complete financial information to reflect the CIS SpA consolidated business operations in calendar years 2013 and 2014, the financial data contained in this presentation represents the aggregate of the following consolidated accounts: (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 Cerved Group 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 a listed company, and the costs incurred to carry out the IPO of CIS SpA Financial information are provided to investors at two different levels: CIS SpA (listed on the Milan Stock Exchange) and CG SpA (issuer of 530m of bonds) 35

37 Profit and Loss m Total Revenues 267,2 290,6 313,5 331,3 Cost of raw material and other materials (0,6) (0,7) (2,8) (7,0) Cost of Serv ices (79,9) (76,3) (77,6) (76,3) Personnel costs (57,8) (67,2) (67,2) (73,7) Other operating costs (6,4) (7,4) (8,1) (8,2) I mpairment of receiv ables and other prov isions (4,5) (7,1) (6,4) (6,3) EBITDA (1) 138,0 144,7 151,5 160,1 Depreciation & amortization (12,0) (16,4) (23,3) (25,1) EBITA 126,0 128,2 128,2 135,0 PPA Amortization (49,5) (53,1) (39,4) (42,9) EBIT 56,5 75,5 81,4 87,6 PBT 30,9 20,5 22,6 24,0 I ncome tax expenses (14,0) (15,4) (14,7) (12,0) Reported Net Income 16,9 5,1 8,0 12,0 Adjusted Net Income 66,9 62,6 43,0 55,0 of which: Minorities 0,3 0,8 1,1 1,4 Source: Company Information (2011 and 2012 restated financials; 2013 aggregate financials) (1) Includes Other income 36

38 Balance Sheet m I ntangible assets 291,5 248,7 501,1 472,4 Goodwill 275,8 275,8 708,6 718,8 Tangible assets 17,7 16,5 16,6 17,3 Financial assets 3,1 15,0 14,9 14,9 Fixed assets 588,1 556, , ,4 I nv entories 0,0 0,1 1,3 0,7 Trade receiv ables 121,3 119,5 151,5 145,3 Trade payables (26,8) (25,4) (30,1) (32,4) Deferred revenues (83,8) (82,5) (83,1) (73,3) Net working capital 10,7 11,6 39,6 40,4 Other receiv ables 10,3 15,4 5,8 7,1 Other payables (44,8) (53,8) (20,4) (26,1) Net corporate income tax items (7,3) (3,0) (27,2) (18,8) Employees Leav ing I ndemnity (9,8) (9,6) (10,9) (13,1) Prov isions (10,7) (10,6) (15,0) (11,1) Deferred taxes (1) (66,9) (60,4) (119,8) (109,1) Net Invested Capital 469,6 445, , ,7 IFRS Net Debt (2) 297,7 280,6 722,2 487,6 Group Equity 172,0 165,1 371,1 605,1 Total Sources 469,6 445, , ,7 Source: Company Information (2011 and 2012 restated financials; 2013 aggregate financials) (1) Non cash item (2) Net of capitalized financing fees 37

39 Cash Flow m EBITDA 123,1 144,7 151,5 160,1 Net Capex (12,1) (25,7) (26,6) (28,2) EBITDA-Capex 110,9 119,0 125,0 131,9 as % of EBITDA 90% 82% 82% 82% Cash change in Net Working Capital (1) 7,8 (6,1) (24,7) 8,2 Change in other assets / liabilities (7,1) (1,9) 7,3 (13,9) Operating Cash Flow 111,7 111,1 107,5 126,2 I nterests paid (8,1) (6,9) (29,1) (51,7) Cash taxes (26,4) (21,3) (18,4) (24,1) Non recurring items (5,0) (3,9) 0,1 (3,4) Cash Flow (before debt and equity movements) 72,1 76,8 60,1 46,9 Div idends (51,1) (13,1) (0,1) 1,0 Acquisitions / deferred payments / earnout (2) (71,5) (3,4) (509,4) (20,9) I PO Capital I ncrease (net of I PO costs) ,2 Other (0,1) Debt drawdown / (repayment) (39,3) (48,0) 482,8 (254,5) Net Cash Flow of the Period (89,8) 12,3 33,5 (7,5) Source: Company Information (2011 and 2012 restated financials; 2013 aggregate financials) (1) Excluding ~ 37mm of cash balance as of February 2013 (acquisition date) (non cash flow item) 38

40 Reconciliation CIS SpA CG SpA Profit & Loss FY'14 EBITDA Depreciation & Amortization Non recurring items (1) Consultancy & Other Operating Costs includes consultancy fees, audit fees, board remuneration, travel costs, marketing Financial income & expenses Taxes Net income Cerved Information Solutions 160,1 68,0 14,6 53,5 12,0 12,0 Labor Cost (CIS) 0,7 0,7 Consultancy & Oth. Operating Costs 0,2 0,2 IPO costs (0,7) 0,7 Transaction costs (0,2) 0,2 Other 0,3 (0,0) - 0,0 0,1 0,2 Cerved Group 161,2 68,0 13,7 53,5 12,1 14,0 Balance Sheet FY'14 Fixed assets Net working capital Other working capital Current and Deferred Taxes Provisions and Other Net Invested Capital Cerved Information Solutions 1.223,4 40,4 (19,0) (127,8) (24,2) 1.092,7 605,1 487,6 Trade Receiv ables 0,3 0,3 Trade Payables 0,6 0,6 Other receiv ables/payables 0,9 0,9 Employees Leav ing Indemnity 0,3 0,3 Deferred taxes (2,2) (2,2) Current taxes (0,9) (0,9) Equity 0,0 (5,4) Net Debt 0,0 4,3 Other (0,1) (0,1) - - Cerved Group 1.223,2 41,2 (18,1) (130,9) (23,9) 1.091,6 599,7 491,9 Equity NFP 39