AGILE GLOBAL TRADE CREDIT PARTNER IN THE INDUSTRY INVESTOR - PowerPoint PPT Presentation

THE MOST AGILE GLOBAL TRADE CREDIT PARTNER IN THE INDUSTRY — INVESTOR PRESENTATION MARCH 2018

Content 1 2 BUSINESS MODEL PERFORMANCE APPENDICES & STRATEGY & SOLVENCY 2 INVESTOR PRESENTATION | MARCH 2018

PART 1 BUSINESS MODEL & STRATEGY

WHO ARE WE? Coface, a publicly listed We SPECIALISE IN Our AREAS OF EXPERTISE: We also keep our customers company, has been one of FACILITATING BUSINESS- up-to-date on current market BUSINESS the WORLD’S LEADING TO-BUSINESS TRADE, conditions, leveraging CREDIT INFORMATION CREDIT INSURANCE working with our customers our INTERNATIONAL for insured INSURANCE and non-insured COMPANIES for the last to develop their operations, BUSINESS AND RISK companies 70 years both on their domestic MANAGEMENT EXPERTISE, DEBT markets and internationally SINGLE COUNTRY AND SECTOR COLLECTION RISK ASSESSMENTS AND for insured guarantees and non-insured QUALITY DATA for one-off complex companies operations 4,100 employees, 77 nationalities ON 80 MILLION COMPANIES Direct presence in 66 countries WORLDWIDE BONDING FACTORING Largest footprint vs . top global competitors In Austria, France, in Germany Germany & Italy & Poland 4 INVESTOR PRESENTATION | MARCH 2018

Our geographical footprint is the broadest in the industry COFACE is present DIRECTLY , or through its PARTNERS , in 100 COUNTRIES , providing support for customers in more than 200 COUNTRIES . The Group uses its OWN INTERNATIONAL NETWORK , which is complemented by the “COFACE PARTNER” NETWORK NORTH AMERICA CENTRAL EUROPE ASIA PACIFIC MEDITERRANEAN AND AFRICA Canada Austria Lithuania Australia New Zealand Albania Lebanon USA Bulgaria Poland Bangladesh Pakistan Algeria Libya Croatia Romania Brunei Philippines Bahrain Mali Czech Republic Russia China Singapore Benin Malta LATIN AMERICA Estonia Serbia Hong Kong South Korea Burkina Faso Mauritania Hungary Slovakia India Taiwan Cameroon Morocco Argentina Panama Kazakhstan Slovenia Indonesia Thailand Chad Niger Brazil Paraguay Latvia Japan Vietnam Cyprus Nigeria Chile Peru Malaysia Djibouti Portugal Colombia Uruguay Egypt Qatar Ecuador Venezuela Gabon Senegal Mexico Gambia South Africa Ghana Saudi Arabia WESTERN EUROPE Greece Spain Guinea Tunisia Belgium Luxembourg Israel Turkey France Switzerland Italy Uganda Ireland United Kingdom Ivory Coast United Arab Emirates Jordan Yemen NORTHERN EUROPE Kuwait Denmark Lichtenstein Finland Netherlands Germany Norway Iceland Sweden 5 INVESTOR PRESENTATION | MARCH 2018

Our ambition: To be the most agile, global trade credit partner in the industry PARTNERS LARGE FINANCIAL RETAIL SMEs MID-MARKET CORPORATES INSTITUTIONS BANKERS – B2B2B GLOBAL CONNECTED SCALE AGILITY MEANS FOR US Specialised sales close to the client Being the MOST GLOBAL credit insurer ‘FIT -TO- WIN’ PRINCIPLES Having the BEST CREDIT INFORMATION Unique integrated Differentiated in industry Prioritise VALUE CREATION systems information over “growth for growth” Proposing SPECIALISED — OFFERS by segment Maintain STRONG FINANCIAL POSITION Having QUALITY SERVICING, INNOVATIVE in select places Close to the Risk Underwriting 6 INVESTOR PRESENTATION | MARCH 2018

Our value proposition: Generating attractive sustainable returns and maintain solid financial position LEVERS OF SHAREHOLDER VALUE CREATION T RANSFORMATION C APITAL OPTIMIZATION STRENGTHEN IMPROVE IMPLEMENT IMPROVE THE CAPITAL EFFICIENCY OF THE COMPANY OPERATIONAL DIFFERENTIATED RISK MANAGEMENT — EFFICIENCY GROWTH STRATEGIES & INFORMATION Leverage reinsurance opportunities & CLIENT SERVICE — Relaunched Partial Internal Model application (Solvency II regulation) — Capture value from — Bring infrastructure Enhance back office our Global presence into coherence and system capabilities with risk reality for client benefit F IT TO W IN 3- YEAR PLAN IS TARGETING TO POSITION C OFACE TO DELIVER ≥ 9% R O ATE ACROSS CYCLE 7 INVESTOR PRESENTATION | MARCH 2018

Our operational transformation is progressing well STRENGTHEN RISK MANAGEMENT IMPROVE OPERATIONAL EFFICIENCY IMPLEMENT DIFFERENTIATED & INFORMATION & CLIENT SERVICE GROWTH STRATEGIES Invested in information quality Streamlining organizations Driving sales efficiency in mature markets and data tools − implemented early retirement plan in France − reorganized sales teams and introduced nomad and negotiated voluntary leaves in Germany technology in France − hired 15 analysts in risk sensitive countries − renegotiated French employee benefits − concluded distribution partnerships with Banks Reinforced underwriting processes agreements Underpenetrated markets: started − regrouped commercial and risk U/W reorganizing distribution in the US and adding Simplified structure organization resources in Japan − increased granularity of risk analysis − created hubs in Nordic, Adriatic and Baltic regions − setup daily U/W committee Emerging stable markets: driving growth through enhanced targeting and hunting Generated savings through systematic use Upgraded and enhanced risk talents technics in Central Europe of sourcing and better real estate utilization − assembled senior expert support team − upgraded local risk talent High risk markets: repriced portfolio Invested in IT platform and capabilities in Latin America, pruned Asia of low return / De-risked hotspots and hot segments − launched 10+ IT projects high risk areas and implemented sector- − set up IT center in Romania based targeting strategy Launched a Lean program addressing process efficiency and service quality − identifying double digit productivity and response time gains 8 INVESTOR PRESENTATION | MARCH 2018

First step in capital optimization achieved Reinsurance cession rate increased to 26% since 2017 ADEQUATE CAPITAL CAPITAL MANAGEMENT GOALS REMUNERATION CAPITAL ALLOCATION POLICY FINANCE PROFITABLE is a long-term factor — & SUSTAINABLE GROWTH in strengthening our competitive Ensure long-term development of the Group position and a major lever in creating SHAREHOLDER VALUE RATINGS SOLVENCY MAINTAIN A STRONG — — CAPITAL POSITION Fitch : AA- stable outlook 140% - 160% target range Moody’s: A2 stable outlook LEVERS ADDITIONAL SOLVENCY II: ATTRACTIVE DIVIDEND POLICY REINSURANCE PARTIAL INTERNAL — — MODEL AS AN OPTION ≥ 60% pay-out share – normalized earnings Broad and strong reinsurers’ pool — Special dividends or buybacks to address excess capital Leverage diversification benefit PIM has to receive regulatory approval 9 INVESTOR PRESENTATION | MARCH 2018

Success in the execution of Fit to Win relies on our people LEADERSHIP TALENT REVIEW CROSS- ATTRACT — PROCESS FERTILIZATION NEW TALENT — & MOBILITY — Strengthen team Redesign process — Develop employer Local leaders brand Renovate key functions Review of top 100 roles to Lean Management Create career Invest in strategy, Review pay plans, Engage local ownership opportunities process management, introduce long term risk, compliance, audit incentive plan Develop technical and leadership training OUR MOST PRECIOUS ASSET 10 INVESTOR PRESENTATION | MARCH 2018

Management team GROUP CENTRAL FUNCTIONS CEO Xavier Durand — 30+ years of international experience in regulated financial services Working for Coface since 2016 Strategy & Business CFO & Risk Director General Secretary Chief Operating Officer Development Director Carine Pichon Carole Lytton Valérie Brami Thibault Surer — — — — 15+ years of experience 30+ years of experience 25+ years of experience 25+ years of experience in credit insurance in credit insurance in managing transformation projects in financial services Working for Coface since 2001 Working for Coface since 1983 Working for Coface since 2016 Working for Coface since 2016 Commercial Director Underwriting Director Deputy Underwriting Director Nicolas Garcia Nicolas de Buttet Cyrille Charbonnel — — — 20+ years of experience 15+ years of experience 25+ years of experience in credit insurance in credit insurance in credit insurance Working for Coface since 2013 Working for Coface since 2012 Working for Coface since 2011 REGIONAL FUNCTIONS Western Europe CEO Northern Europe CEO Mediterranean & Africa CEO Central Europe CEO Antonio Marchitelli Katarzyna Kompowska Cécile Paillard Declan Daly — — — — 20+ years of experience in insurance 25+ years of experience in credit 15+ years of experience in insurance 25+ years of experience Working for Coface since 2013 insurance & related services Working for Coface since 2017 in financial services Working for Coface since 1990 Working for Coface since 2017 North America CEO Asia Pacific CEO Latin America CEO Fredrik Murer Bhupesh Gupta Bart Pattyn — — — 20+ years of experience 25+ years of international experience 30+ years of experience in insurance & political risk underwriting in credit, origination and risk in insurance & financial services Working for Coface since 2016 Working for Coface since 2016 Working for Coface since 2000 11 INVESTOR PRESENTATION | MARCH 2018