Q1 Results to 31 March 2015 - Cerved Company Q1... · Q1'2015 Group EBITDA EBITDA Bridge (Q1’2014...

Q1 Results to 31 March 2015

May 12th, 2015

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

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


Prior experience: CVC, Deutsche Bank, Bankers Trust, UBS, SEAT

Education: degree in Economics and Business Administration from University of Bergamo

9 years at Cerved


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

Financial Review 2

Highlights 1

Guidance 2015 3

Appendices 4

4

Executive Summary

Guidance 2015

Guidance for 2015 EBITDA in the range of €170m to €174m

Implied total EBITDA growth between 6.2% and 8.7%

Target long term leverage ratio of 3.0x and dividend policy

as per programmatic resolution to distribute available cash

Macro Highlights

GDP forecast growth in 2015 between +0.2% and +0.7%1)

Key macro indicators show positive signs, albeit early stage

Cerved expects to confirm its resilient business model in 2015

Cerved Financial Results

Revenues and EBITDA +4.7% and +3.6% vs 2014, respectively

Cash Flow marginally declines by -1.5% vs 2014

Adjusted Net Income up +50.1% and Leverage at 2.9x EBITDA

M&A,

Dividend,

Refinancing

Creval Portfolio Partnership closed on 1st April 2015

€39.975m dividend payment on 13th May 2015

Improved prospects to refinance bonds in January 2016

1) Source: Bank of Italy, OECD, Confindustria, ISTAT

5

113 119 125 132

30 31

2011 2012 2013 2014 Q1'14 Q1'15

Consistent Growth and Cash Flow Generation

Consistent Growth EBITDA Growth High Cash Flows

Revenue (€m) EBITDA (€m) EBITDA – Capex (€m)

138 145 152 160

38 39

2011 2012 2013 2014 Q1'14 Q1'15

267 291

313 331

79 83

2011 2012 2013 2014 Q1'14 Q1'15

+4.7%/ (0.7)%

+7.4% / +3.9%

% / % Total Growth % / Organic Growth %

Consistent Revenue, EBITDA and Cash Flow growth despite macroeconomic conditions

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%

+3.6%/ +1.3%

+5.2%

+3.9%

6

10,8%

8,6% 8,1%

11,3% 12,4% 12,5%

Q4

-0,6%

Q4

0,0% Q4

0,0%

50

100

150

200

5.3%

13.5%

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 versus

same quarter of previous year

2015 GDP finally

expected to grow,

after 3 very difficult

years in which there

were 9 quarters with

negative GDP growth

Positive signs from

new lending volumes:

+13% in Q1’15 after a

+12% in Q4‘14 (albeit

largely from TLTRO)

Same data as in FY

2014 presentation

This data confirms

improvement in key

variables such as late

paying companies

and bankruptcy rates

Growth in NPLs

continues at a lower

pace, as expected

by many sources

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

2014

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2012

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2012

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2012

Q1 Q2 Q3 Q4

2014

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2012

Q1 Q2 Q3 Q4

3,0%

3,5% 3,7%

2014

Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

2012

Q1 Q2 Q3 Q4

Default rate on outstanding loans (Q3 and Q4 2014 are forecasts; Cerved estimates

on Bank of Italy data)

Source: ISTAT/OECD Source: ISTAT Source: Bank of Italy

Source: Osservatorio Cerved Source: Osservatorio Cerved Source: Osservatorio Cerved, Bank of Italy

2008 – 2010 – 2012 – Q1’15

YoY -0.4% YoY -1.7% YoY -2.8%

7

Table of Contents

Financial Review 2

Highlights 1

Guidance 2015 3

Appendices 4

8

Group Revenues

290,6 313,5 331,3

79,3 83,0

2012 2013 2014 Q1'14 Q1'15

Revenue Bridge (Q1’2014 – Q1’2015) – (€m)

79,3

83,0

0,8 (0,8) 3,8

0,1 (0,1)

Revenues

Q1'2014

CI -

Financial Institutions

CI -

Corporates

Credit

Management

Marketing Solutions Other & Conso

clearing

Revenues

Q1'2015

Credit Information

+7.9% / +5.7%

+5.7% / +3.8%


Revenues (€m) and Revenue growth (%)

+4.7% / (0.7)%

9

38,1

39,4 0,8

0,6 (0,0)

EBITDA

Q1'2014

Credit

Information

Credit

Management

Marketing

Solutions

EBITDA

Q1'2015

Group EBITDA

EBITDA Bridge (Q1’2014 – Q1’2015) – (€m)

EBITDA (1) (€m) and EBITDA margin (%)

144,7 151,5 160,1

38,1 39,4

2012 2013 2014 Q1'14 Q1'15

48.3% 49.8% 48.3%

(1) FY 2012 EBITDA is adjusted for Shareholder Fees;

+4.7% / +4.6%

+5.6/ +4.5%


+3.6% / +1.3%

48.0% 47.5%

10

119,0 125,0 131,9

30,2 31,4

2012 2013 2014 Q1'14 Q1'15

Group EBITDA-Capex and Financial Leverage

39.9% 41.0%

39.8%

% EBITDA-Capex margin (as % or Revenues)

Net Debt (€m) and Net Debt/ EBITDA

281

722

488 481

2012 2013 2014 Q1'15

1.9x

4.8x

x Adjusted Net debt/EBITDA

3.0x

YoY Growth % %

+5.5%

EBITDA-Capex (€m) and EBITDA-Capex margin (%)

+5.0%

2.9x

38.2% 37.9%

+3.9%

11

Group Divisional Performance

Credit Information Credit Management Marketing Solutions

127,4 126,3 122,0

30,3 31,1

128,8 138,2 142,7

36,0 35,2

256,2 264,5 264,7

66,4 66,3

2012 2013 2014 Q1'14 Q1'15

Re

ve

nu

e

EB

ITD

A

136,8 139,3 142,1

35,2 36,0

2012 2013 2014 Q1'14 Q1'15

25,0 36,6

53,3

10,3 14,1

2012 2013 2014 Q1'14 Q1'15

4,4

7,6

11,2

1,8 2,4

2012 2013 2014 Q1'14 Q1'15

9,9 12,8 14,7

2,8 2,9

2012 2013 2014 Q1'14 Q1'15

3,5 4,7

6,8

1,0 1,0

2012 2013 2014 Q1'14 Q1'15

35.6%

36.5%

45.9% 20.7%

21.0% 53.4% 52.7% 53.7%

4.8%

Fin. Inst.

Corp.

% YoY Growth %

21.9% 36.8%

45.9%

1.6%

(0.1)%

1.9%

2.2%

17.6%

(2.2)%

38.5%

34.2%

59.3%

% EBITDA margin % % CAGR

37.3% 34.8% 17.6% 17.2%

53.0% 54.2%

12

Growth in Financial Institutions

segment of +2.6%, thanks to

increased data consumption by

banks, product innovation, RLValue,

and no major contract renewals

Revenue decline of -2.4% in the

Corporate segment despite the

underlying consumption of Business

Information points by clients which

grew by +4.7%

Q1’14 Revenues impacted by

unusually high level of lost points

The increased EBITDA margin mainly

reflects a mix effect within the

Financial Institution and Corporate

segments and their respective

products

Please note that this improvement

was achieved in spite of higher

investments in personnel costs and

new product launches

127,4 126,3 122,0

30,3 31,1

128,8 138,2 142,7

36,0 35,2

256,2 264,5 264,6

66,3

2012 2013 2014 Q1'14 Q1'15

Credit Information

136,8 139,3 142,1

35,2 36,0

2012 2013 2014 Q1'14 Q1'15

1.8%

3.2%

52.7% 53.4% 53.7%

Corporates:

Financial Institutions:

5.3%

(2.1)%

% EBITDA margin %

(2.4)%

2.6%

YoY Growth %

Key highlights

Key highlights


EBITDA (€m) and EBITDA margin (%)

2.0%

0.1%

CAGR 2012-2014 Q1’14 vs Q1’15

66,4

(0.1)%

53.0% 54.2%

2.2%

13

Quarterly performance of the

corporate segment varies

significantly from quarter to quarter

Commercial campaigns had a

positive impact on Q2-Q3 2013 and

Q3-Q4 2014

Q1 2013 is negative due to a

commercial campaign in Q1

of 2012

Lost points had a positive impact on

Q4 2013 and Q1 2014

Credit Information - Corporate

Key highlights

Key highlights

Corporate Sales, Consumption and Revenues

Variability of Corporate Credit Information Y-o-Y Revenue Growth 1)

The sale of points shows healthy

trends in 2014 and also in Q1 2015

This is also reflected in the

consumption of Business

Information points by clients

served by field sales agents

Revenues are however impacted

by lost points which were

particularly high in Q1 2014 due to

churn arising from the integration

of Experian Data Services

Q1 Q2 Q3 Q4 FY

2013 (1,7%) 8.1% 10.4% 4.4% 5.0%

2014 6.8% 1.1% 0.8% 0.6% 2.3%

2015 (2.4%)

Positive effect from commercial campaigns

Positive effect from lost points

Negative comparison effect from lost points

(1) 2013 Revenues adjusted to exclude the impact of the acquisition of Experian Data Services

Q1 2015 FY 2014 LTM to

Mar 2015

Sale of Points to Clients 14.9% 2.5% 5.3%

Consumption of Business Information Points

(only clients served by field sales agents) 4.7% 2.9% 3.3%

Credit Information Revenues (2.3)% 3.3% (0.1)%

14

Stable margins compared to 2014

Q1 2015 results impacted by (i.)

low collection rates which have a

negative compounding effect on

margins and (ii.) soft performance

by Recus with EBITDA of EUR 0.5m

due to shortfall in Revenues

Results do not yet reflect an

ongoing project aimed at

optimizing the production base

Headline growth of +36.8%

(including Recus Revenues of

€3.5m)

Focus for growth in 2015 is on

total increase in NPLs under

management, either organic or

from acquisitions, due to the

strong impact on operations

The acquisition of Recus, the

partnership with Creval, and

servicing contracts with MPS

contribute a total of approx. EUR

3.4bn of NPLs to be managed

Credit Management

25,0 14,1

36,6

53,3

10,3

2012 2013 2014 Q1'14 Q1'15

46.4%

4,4

7,6

11,2

1,8 2,4

2012 2013 2014 Q1'14 Q1'15

72.4%

20.7%

17.6%

21.0%


% EBITDA margin

Key highlights

Key highlights


% YoY Growth %

45.5%

47.2%

36.8%

17.6% 17.2%

34.2%

15

3,5 4,7

6,8

1,0 1,0

2012 2013 2014 Q1'14 Q1'15

Marketing Solutions

9,9

12,8 14,7

2,8 2,9

2012 2013 2014 Q1'14 Q1'15

29.0%

32.3%

36.5% 35.6%

45.9%

% EBITDA margin

EBITDA margin in line with 2014, at

34.8% in 2015 versus 37.3% in 2014

These margins remain significantly

higher than the EBITDA margin in

Q1 2013 which was -3.2%

Growth of +4.8% is positive

considering that Q1 2014

Revenues had grown +69.3%

Q1 2015 Revenues do not yet

reflect the contribution from the

new Marketing+ web-based

platform which was launched in

early May

Prospects are positive considering

that orders received in Q1 2015

are 14% higher than in Q1 2014


Key highlights

Key highlights


% YoY Growth %

45.0%

15.3%

4.8%

37.3% 34.8%

(2.2)%

16

Key highlights Summary Profit and Loss (€m)

Summary Profit and Loss

EBITDA margin of 47.5% in Q1

2015 versus 48.0% in 2014, entirely

attributable to the consolidation

of Recus

Financial expenses are lower by

€4.2m due to savings related to

the FRNs repaid in June 2014

Adjusted Net Income increased

50.1% reaching €14.7m in Q1

2015

PPA amortisation includes €3.4m

deductible for tax purposes

Non-recurring items related to

the payment of residual IPO

costs

Adjusted Net Income is adjusted

for non-recurring income and

expenses, capitalized financing

fees, PPA amortisation, and the

relevant fiscal impact of such

components (ca. 31%)

€m 2013 2014 Q1'14 Q1'15

Total Revenues 313,5 331,3 79,3 83,0

% growth (YoY) 7,9% 5,7% 10,0% 4,7%

EBITDA 151,5 160,1 38,1 39,4

% Revenues 48,3% 48,3% 48,0% 47,5%

Depreciation & Amortization (23,3) (25,1) (5,8) (7,2)

EBITA 128,2 135,0 32,3 32,2

PPA Amortization (39,4) (42,9) (10,7) (10,8)

Non recurring income and expenses (7,4) (4,5) (0,5) (1,0)

EBIT 81,4 87,6 21,1 20,3

Financial income 0,8 1,1 0,1 0,2

Financial expenses - non recurring - (10,1) - -

Financial expenses (59,6) (54,6) (14,9) (10,7)

PBT 22,6 24,0 6,4 9,9

Income tax expenses (14,7) (12,0) (4,9) (3,8)

Reported Net Income 8,0 12,0 1,5 6,1

Adjusted Net Income 43,0 55,0 9,8 14,7

of which: Minorities 1,1 1,4 0,3 0,2

17

119,5

151,5 135,3 145,3 151,1 140,9

149,8

(25,4) (30,1) (31,8) (32,4) (33,8) (28,6) (29,1)

(82,5) (81,9) (73,3) (73,3) (73,1) (66,9) (66,9)

11,6

40,8 31,0

40,4 45,3 46,6 54,9

2012 2013 2014

Ex-M&A

2014 Q1'14 Q1'15

Ex-M&A

Q1'15

Inventories Trade receivables Trade payables

Deferred revenues Net Working Capital

Net Working Capital

4.0% 13.0%

Net Working Capital (€m)

Due to seasonality trends, Net

Working Capital in Q1 is

typically higher than in Q4

Net Working Capital in Q1 2015

increases vs Q1 2014 due to (i.)

the consolidation of Recus, (ii.)

higher than expected

Receivables yet having

resolved the ERP-related issues,

(iii.) lower Deferred Revenues

due to a more conservative

commercial policy and the use

of points by the Marketing

Solutions division, and (iv.)

lower Trade Payables

The decline of Deferred

Revenues from YE 2014 to Q1

2015 (€6.4m) was lower than in

the prior year (€8.8m)

An ad-hoc project was

launched at the end of 2014 to

optimise working capital in

order to extract cash. Results

are expected in the second

half of 2015

Key highlights

NWC as % of Revenues %

(1) Data excludes Recus and RLValue

9.5%1) 14.2%1) 14.1% 11.7%2) 15.9%2)

(2) NWC/Revenues based on Revenues of Recus and RL Value for the last 12 months

18

+3.9% increase in EBITDA minus

Capex due to the increase in

EBITDA and stable Capex

Operating Cash Flow declines

marginally to €19.2m, mainly

due to temporary adverse

changes in Deferred Revenues

and Trade Payables

The positive change in other

assets and liabilities is mainly

related to VAT paid in

advance in December 2014

Please note that in 2015

bonuses were paid in March as

opposed to April in 2014. On a

like for like basis, Operating

Cash Flows in 2015 would be

approx. €3m higher

Key highlights Operating Cash Flow (€m)

Operating Cash Flow

(1) Cash change in Net Working Capital exludes non recurring items

€m 2013 2014 Q1'14 Q1'15

EBITDA 151,5 160,1 38,1 39,4

Net Capex (26,6) (28,2) (7,8) (8,0)

EBITDA-Capex 125,0 131,9 30,2 31,4

as % of EBITDA 82% 82% 79% 80%

Cash change in Net Working

Capital(1)(24,7) 8,2 (7,1) (13,5)

Change in other assets /

liabilities7,3 (13,9) (3,7) 1,3

Operating Cash Flow 107,5 126,2 19,5 19,2

19

Leverage declines to 2.9x in Q1

2015 (on a proforma basis

including Recus and RLValue

for the last 12 months)

Cerved is currently assessing

market conditions to refinance

its €530m of bonds in January

2016, when prepayment

penalties fall to €23.4m

Securing the terms of the re-

financing facilities ahead of

January 2016 would allow

Cerved to crystallise current

market conditions which

appear very favourable

Financial Indebtedness

Key highlights Financial Indebtedness table (€m)

Bond Redemption Cost Evolution (€m)

25,5 21,5 17,5 13,5 9,6 9,6 9,6 9,6 4,8 4,8 4,8 4,8

29,6

25,7

21,7

17,8

13,8 13,8 13,8 13,8

9,2 9,2 9,2 9,2 4,6

0

20

40

60

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

Senior Subordinated Senior Secured

€m 2013 H1'14 2014 Q1'15

Bonds 780,0 530,0 530,0 530,0

Other financial debt 0,6 0,6 4,0 1,4

Accrued Interests 20,6 17,8 17,3 8,5

Gross Debt 801,1 548,4 551,3 539,9

Cash (50,3) (17,1) (46,1) (42,1)

Capitalized financing fees (28,6) (19,1) (17,6) (16,9)

IFRS Net Debt 722,2 512,1 487,6 480,9

Net Debt/ LTM EBITDA 4,8x 3,3x 3,0x 2,9x

20

Table of Contents

Financial Review 2

Highlights 1

Guidance 2015 3

Appendices 4

21

Guidance Full Year 2015

EUR 170m (+6.2%) FY 2015

including Creval Partnership for 3 quarters

Leverage 3.0x EBITDA long-term target, save for non-recurring

or strategic transactions and quarterly fluctuations

Dividends

EUR 174m (+8.7%)

Organic Growth + EUR 4m (+2.5%) + EUR 7m (+4.5%)

EBITDA

Leverage & Dividends

EUR 160.1m FY 2014 Reported

EUR 163.2m FY 2014 Proforma Including Recus & RLValue

Maximize distribution of available cash, to the extent permitted by our financial condition and future investment opportunities, as per board’s programmatic resolution

22

Table of Contents

Financial Review 2

Highlights 1

Guidance 2015 3

Appendices 4

23

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 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

listed company, and costs incurred to carry out the IPO of CIS SpA (in 2014

results)

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)

24

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 (1) Includes ‘Other income’

€m 2013 2014 Q1'14 Q1'15

Total Revenues 313,5 331,3 79,3 83,0

Cost of raw material and other materials (2,8) (7,0) (1,1) (1,3)

Cost of Serv ices (77,6) (76,3) (19,4) (18,9)

Personnel costs (67,2) (73,7) (17,6) (19,7)

Other operating costs (8,1) (8,2) (1,8) (2,1)

Impairment of receivables and other provisions (6,4) (6,3) (1,2) (1,6)

EBITDA (1) 151,5 160,1 38,1 39,4

Depreciation & amortization (23,3) (25,1) (5,8) (7,2)

EBITA 128,2 135,0 32,3 32,2

PPA Amortization (39,4) (42,9) (10,7) (10,8)

EBIT 81,4 87,6 21,1 20,3

PBT 22,6 24,0 6,4 9,9

Income tax expenses (14,7) (12,0) (4,9) (3,8)



of which: Minorities 1,1 1,4 0,3 0,2

25

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 2013 2014 Q1'14 Q1'15

Intangible assets 501,1 472,4 491,9 462,6

Goodwill 708,6 718,8 709,0 718,8

Tangible assets 16,6 17,3 17,1 17,0

Financial assets 14,9 14,9 15,6 14,9

Fixed assets 1.241,3 1.223,4 1.233,7 1.213,4

Inventories 1,3 0,7 1,1 1,2

Trade receivables 151,5 145,3 151,1 149,8

Trade payables (30,1) (32,4) (33,8) (29,1)

Deferred revenues (83,1) (73,3) (73,1) (66,9)

Net working capital 39,6 40,4 45,3 54,9

Other receivables 5,8 7,1 8,3 14,2

Other payables (20,4) (26,1) (25,4) (28,1)

Net corporate income tax items (27,2) (18,8) (17,7) (31,5)

Employees Leaving Indemnity (10,9) (13,1) (11,1) (13,4)

Provisions (15,0) (11,1) (13,0) (10,8)

Deferred taxes (1) (119,8) (109,1) (118,5) (106,8)

Net Invested Capital 1.093,3 1.092,7 1.101,6 1.091,8

IFRS Net Debt (2) 722,2 487,6 730,2 480,9

Group Equity 371,1 605,1 371,4 610,9

Total Sources 1.093,3 1.092,7 1.101,6 1.091,8

26

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 2013 2014 Q1'14 Q1'15

EBITDA 151,5 160,1 38,1 39,4

Net Capex (26,6) (28,2) (7,8) (8,0)

EBITDA-Capex 125,0 131,9 30,2 31,4

as % of EBITDA 82% 82% 79% 80%

Cash change in Net Working Capital (24,7) 8,2 (7,1) (13,5)

Change in other assets / liabilities 7,3 (13,9) (3,7) 1,3

Operating Cash Flow 107,5 126,2 19,5 19,2

Interests paid (29,1) (51,7) (22,3) (19,2)

Cash taxes (18,4) (24,1) (12,8) -

Non recurring items 0,1 (3,4) (0,5) (1,0)

Cash Flow (before debt and equity movements) 60,1 46,9 (16,1) (1,0)

Dividends (0,1) 1,0 0,3 -

Acquisitions / deferred payments / earnout (509,4) (20,9) (0,4) (0,4)

IPO Capital Increase (net of IPO costs) - 220,2 - -

Other - (0,1) - (1,0)

Debt drawdown / (repayment) 482,8 (254,5) - -

Net Cash Flow of the Period 33,5 (7,5) (16,2) (2,4)

27

Reconciliation CIS SpA – CG SpA

(1) Consultancy & Other Operating Costs includes consultancy fees, audit fees, board remuneration, travel costs, marketing

Profit & Loss

Q1'15EBITDA

Depreciation &

Amortization

Non recurring

items

Financial income &

expensesTaxes Net income

Cerved Information Solutions 39,4 18,0 1,0 10,5 3,8 6,1

Cost of Serv ices 0,1 0,1

Labor Cost (CIS) 0,3 0,3

Consultancy & Oth. Operating Costs 0,1 0,1

Other 0,0 (0,0) 0,0 0,0 (0,2) 0,2

Cerved Group 40,0 18,0 1,0 10,5 3,6 6,8

Balance Sheet

Q1'15

Fixed

assets

Net working

capital

Other working

capital

Current and

Deferred

Taxes

Provisions and

Other

Net Invested

CapitalEquity NFP

Cerved Information Solutions 1.213,4 54,9 (13,9) (138,3) (24,3) 1.091,8 610,9 480,9

Trade Receivables 0,1 0,1

Trade Payables (0,6) (0,6)

Other receivables/payables 0,8 0,8

Employees Leaving Indemnity 0,3 0,3

Deferred taxes (2,0) (2,0)

Current taxes (0,7) (0,7)

Equity 0,0 (4,7)

Net Debt 0,0 2,4

Other (0,2) - - - - (0,2) 0,0 0,0

Cerved Group 1.213,2 54,5 (13,1) (141,0) (23,9) 1.089,5 606,2 483,3

28

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 2013 2014 Q1'14 Q1'15


Non recurring income and expenses 7,4 4,5 0,5 1,0

Capitalized financing fees 4,1 3,4 0,9 0,7

PPA Amortization 39,4 42,9 10,7 10,8

Financial charges non-recurring - 10,1 - -

IRS termination - 1,0 - -

Fiscal Impact of above components (15,8) (18,9) (3,7) (3,9)

Adjustments 35,1 43,0 8,3 8,6


Cerved Information Solutions S.p.A. Via San Vigilio, 1 - 20142 Milano

Tel. +39 02 77541 Fax +39 02 76020458

company.cerved.com

Q1 Results to 31 March 2015 - Cerved Company Q1... · Q1'2015 Group EBITDA EBITDA Bridge (Q1’2014...

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