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Results to 31 December 2014
March 13th, 2015
CERVED INFORMATION SOLUTIONS S.p.A.
Disclaimer
1
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.
Gianandrea De Bernardis – Chief Executive Officer
Today’s Presenters
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
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
2
Table of Contents
3
Financial Review 3
Highlights 1
Trading Outlook 4
Business Review 2
Appendices 5
Executive Summary
4
Dividend & Trading Outlook
Dividend proposal of Euro 40m payable in May 2015
Trading Outlook continuing growth in 2015
Macro Highlights
2014 GDP change of -0.4% vs earlier expectations of +0.7%
Current forecasts point to GDP growth of 0.2-0.5% in 20151)
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
1) Source: Bank of Italy, OECD, Confindustria
113 119 125 132
2011 2012 2013 2014
+5.5%
5
Consistent Growth EBITDA Growth High Cash Flows
Revenue (€m) EBITDA (€m) EBITDA – Capex (€m)
138 145 152 160
2011 2012 2013 2014
267 291
313 331
2011 2012 2013 2014
+5.7%/ +3.8%
+7.4% / 3.9%
% / % 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
+5.1% / 3.8%
+5.6%/ +4.5% +5.2%
Consistent Growth and Cash Flow Generation
6 Source: PwC 1) No. 1 player In the non-captive market, considering pro-forma revenues in 2013 which include Recus and Tarida
2% 42%
Credit Information Corporates
290 (+3.6%)
Credit Information
627 (+3.9%)
721 (+8.5%)
Ce
rve
d
Ma
rke
t sh
are
2013
Ce
rve
d
Po
sitio
n
359 (-4.3%)
4.2% 42.7% 7.3%1)
Credit Information Financial Institutions
Credit Management Marketing Solutions
Consumer 321
Corporates 305
4%
(+18.4%)
43%
(+8.5%)
16%
(+63.7%)
37%
(-3.3%)
No. 9 No.1 No. 11) No.1
Ita
lian
ma
rke
t si
ze 2
013 (
€m
m)
(CA
GR
11
-13)
% C
erv
ed
2014 R
ev’s
(C
AG
R 1
1-1
4)
NPLs 502
Corporate receivables
219
Market Leadership
Credit Information Credit Management Marketing Solutions
Business Information
120
Rating & Analytics 39
Real Estate
97
Consumer Information
103
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
5.38
13.5%
7.2%
Macro Highlights
7
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
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
Cerved proprietary
data also shows an
improvement in key
variables such as late
paying companies
and bankruptcy rates
The growth in NPLs
continues at a lower
pace, as expected
from numerous
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 - 2014
YoY -0.4% YoY -1.7% YoY -2.8%
Business Model & Strategy: Confirmed
2 Growth
3 Cash flow
1 Resiliency
Credit Info - Consolidate position in financial
institutions
Credit Info and Marketing Services – Continue to
exploit the underpenetrated corporate market
Exploit opportunities in adjacent markets
Credit Management - Grow AUM and keep
focused on collection
Continue to invest in new product development
and innovation
Add-on opportunities in Italy and abroad
8
Table of Contents
9
Financial Review 3
Highlights 1
Trading Oultook 4
Business Review 2
Appendices 5
Operational and Strategic Update for 2014 and Key Actions for 2015
Business Review Topics
10
Business
Finance
M&A
and
IR
Credit Information - Corporate
Credit Information – Financial Institutions
Credit Management
Marketing Solutions
EBITDA & Profitability
Financial Reporting, Working Capital and
Capital Structure
Mergers & Acquisitions
Investor Relations
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
Credit Information – Corporates
11
95
102
108
124 129
138 143
2008 2009 2010 2011 2012 2013 2014
1) Consumption of points in 2014 compared to 2013 for business information products by c. 22k corporate clients covered by the field sales network
Investing in the business to improve performance in the medium term
Lince Honyvem EDS
Consumption of Business Information Points 2014 vs 2013 (1) Corporate Revenues 2008-2014 (€m) 2)
Business
Finance
M&A and IR
Lost
Clients
Existing
Clients
New
Clients
Y-o-Y
Consumption
(4.1%)
2.0%
5.4%
3.3%
2) 2011 proforma for Honyvem
Real Estate
Rating &
Analytics
Business
Information
Credit Information – Financial Institutions
12
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
682
572 517
488 463
401 395
+6
%
(16
%) (1
0%
) (6%
)
(5%
)
(13
%)
(2%
)
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
2008 2009 2010 2011 2012 2013 2014
1) Source: Bank of Italy
After a tough 2014 the environment appears less challenging in 2015
CI Financial Institutions – Breakdown 2014 Bank New Lending from 2008 (€bn) 1)
Business
Finance
Yo
Y c
ha
ng
e (%
)
M&A and IR
Banks &
Investors
Utilities &
Financials
Corporates
Legal
Services
Re-
marketing
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
13
10,3
7,8
1,8 1,3 0,5
2014 2013 2012 2011 2010
Impressive growth and diversification from 2011 to 2014 with Revenue CAGR of 64%
Credit Management Revenue Breakdown AuM Evolution (€bn)
NPLs and Problematic
Credits
Business
Finance
M&A and IR
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
Credit Management (cont’d)
14
Potential in the market to increase sale and/or outsourcing of bank portfolios
Business Map Evolution of NPL Financial Institutions – Banks (€bn)
59 78
107
125
156 183
201 216
227
2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E
Business
Finance
Source: Prometeia
7%
28%
M&A and IR
Ad-Hoc
Projects
Database
Industrial
and
Competitor
Analysis
Marketing
Platforms
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
Marketing Solutions
15
8,9 9,9
12,8
14,7
3,1 3,5 4,7
6,8
2011 2012 2013 2014
Continue to exploit synergies with Corporates on database, clients and sales force
Breakdown of 2014 Revenues Revenues and EBITDA (€m)
Business
Finance
M&A and IR
Labor
Expenses
Information
Services
Sales
Agents
Accruals &
Bad Debt
Other Costs
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
EBITDA and Profitability
16
53,9% 53,4% 52,7% 53,7%
2011 2012 2013 2014
17,0% 17,6% 20,7% 21,0%
2011 2012 2013 2014
34,5% 35,6% 36,5%
45,9%
2011 2012 2013 2014
Cerved enjoys operating leverage in each of its three divisions
Credit Information EBITDA margins Credit Management EBITDA margins Marketing Solutions EBITDA margins
Business
Finance
1) Note: financials related to Cerved Group SpA
Operating Expenses 2014 1)
M&A and IR
Financial Reporting, Working Capital, Capital Structure
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
17
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
Business
Finance
M&A and IR
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
Mergers & Acquisitions
18
Recus SpA 1) 80% 18.8m 15.9m 3.5m
RLValue Srl 1) 100% 1.4m 1.7m 0.4m
SpazioDati Srl 33% 1.3m n.a. n.a.
Creval Partnership 2)
100% 21.7m c. 9m c. 3.9m
1) Actual Revenues and EBITDA for the 12m period ending December 2014 2) Closing expected in April 2015; Expected EBITDA for the 12m period ending December 2015
Strategy focused on safe, bolt-on acquisitions in core and adjacent markets in Italy
Pipeline 2015
Company Stake Investment Revenues EBITDA
Deal Closed 2014 & Creval Portfolio Partnership (2015)
CI
BI CM
Adj.
MS
Foreign
Company Stake Investment
Advanced Preliminary Status
Mo
re
Less
Effo
rt
M&A Effort and Status
Business
Finance
M&A and IR
Date Event Location
Mar 25 Mid-Small Caps Conference (DB) London
Apr 1 Mid-Small Caps Conference (HSBC) Paris
May 13-14 Business Services Conference (JPM) London
Jun 10-11 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
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
Investor Relations
19
120 141
206 182
207
304
176
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
Medium term objective is to prepare Cerved to be a Public Company
Conferences Scheduled for 2015 1) Average Daily Volumes (NOSH k) 2)
1) Tentative dates and events subject to change 2) Excluding 2, 5 and 6 January 2015 3) Up to March 11th, 2015
Business
Finance
M&A and IR
Table of Contents
20
Financial Review 3
Highlights 1
Trading Outlook 4
Business Review 2
Appendices 5
Group Revenues
21
267,2 290,6 313,5 331,3
2011 2012 2013 2014
Revenue Bridge (2013 – 2014) – (€m)
313,5
331,3
(4,2 ) 4,5
16,7 2,0 (1,0 )
Revenues
2013
CI -
Financial Institutions
CI -
Corporates
Credit
Management
Marketing Solutions Other & Conso
clearing
Revenues
2014
Credit Information
+7.9% / +5.7%
+8.8% / +2.3%
+5.7% / +3.8%
% / % Total Growth % / Organic Growth %
Revenues (€m) and Revenue growth (%)
151,5
160,1
2,8
3,6 2,1
EBITDA
2013
Credit
Information
Credit
Management
Marketing
Solutions
EBITDA
2014
Group EBITDA
22
EBITDA Bridge (2013 – 2014) – (€m)
EBITDA (1) (€m) and EBITDA margin (%)
138,0 144,7 151,5 160,1
2011 2012 2013 2014
48.3% 49.8% 51.6% 48.3%
(1) FY 2011 EBITDA is adjusted for Database Acquisition Costs and Shareholder Fees; FY 2012 EBITDA only for Shareholder Fees
+4.7% / +4.6%
+4.9% / +2.3%
+5.6/ +4.5%
% / % Total Growth % / Organic Growth %
113,2
119,0
125,0
131,9
2011 2012 2013 2014
Group EBITDA-Capex and Financial Leverage
23
39.9%
41.0%
42.4%
39.8%
% EBITDA-Capex margin (as % or Revenues)
Net Debt (€m) and Net Debt/ EBITDA
298 281
722
488
2011 2012 2013 2014
2.2x 1.9x
4.8x
x Adjusted Net debt/EBITDA
3.0x
YoY Growth % %
+5.5%
EBITDA-Capex (€m) and EBITDA-Capex margin (%)
+5.0% +5.1%
24
Credit Information Credit Management Marketing Solutions
134,9 127,4 126,3 122,0
111,8 128,8 138,2 142,7
247 256 264 265
2011 2012 2013 2014
Re
ve
nu
e
EB
ITD
A
132,9 136,8 139,3 142,1
2011 2012 2013 2014
12,1 25,0
36,6
53,3
2011 2012 2013 2014
2,1 4,4
7,6
11,2
2011 2012 2013 2014
8,9 9,9 12,8 14,7
2011 2012 2013 2014
3,1 3,5 4,7
6,8
2011 2012 2013 2014
34.5% 35.6%
36.5%
45.9%
Group Divisional Performance
17.1%
20.7%
21.0%
53.9% 53.4% 52.7% 53.7%
15.3%
Fin. Inst.
Corp.
% YoY Growth %
18.4%
45.5% 63.7%
2.4% 0.1%
2.3% 2.0%
17.6%
45.0% 30.2%
47.2%
75.5%
% EBITDA margin % % CAGR
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
The EBITDA generated by the
Credit Information division
increased by 2.0% compared to
2013, thanks to the cost control
activities during the year
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
134,9 127,4 126,3 122,0
111,8 128,8 138,2 142,7
246,6 256,2 264,5
2011 2012 2013 2014
Credit Information
25
132,9 136,8
139,3 142,1
2011 2012 2013 2014
1.8% 2.9%
3.9% 3.2%
52.7% 53.4% 53.9% 53.7%
Corporates:
Financial Institutions:
11.2%
(3.2%)
% EBITDA margin %
3.3%
(3.4%)
YoY Growth %
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
EBITDA (€m) and EBITDA margin (%)
2.0%
0.1%
CAGR 2011-2013 2014
264,7
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)
2014 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)
Credit Management
26
12,1
25,0
36,6
53,3
2011 2012 2013 2014
106.2% 46.4%
2,1 4,4
7,6
11,2
2011 2012 2013 2014
72.4% 112.8% 20.7%
17.6% 17.0%
21.0%
EBITDA (€m) and EBITDA margin (%)
% EBITDA margin
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
% YoY Growth %
45.5%
47.2%
3,1 3,5 4,7
6,8
2011 2012 2013 2014
Marketing Solutions
27
8,9 9,9
12,8 14,7
2011 2012 2013 2014
29.0%
32.3%
15.1% 36.5%
35.6% 34.5%
45.9%
% EBITDA margin
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
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 (%)
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
11.7%
% YoY Growth %
45.0%
15.3%
Key highlights Summary Profit and Loss (€m)
Summary Profit and Loss
28
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
€m 2011 2012 2013 2014
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
Income 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
121,3 119,5
151,5 145,3
135,3
(26,8) (25,4) (30,1) (32,4) (31,8)
(83,8) (82,5) (81,9) (73,3) (73,3)
10,7 11,6
40,8 40,4 31,0
2011 2012 2013 2014
Reported
2014PF
ex-M&A
Inventories Trade receivables Trade payables
Deferred revenues Net Working Capital
29
Net Working Capital
4.0% 4.0% 13.0%
Net Working Capital (€m)
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
Key highlights
NWC as % of Revenues %
(1) NWC/Revenues based on Revenues of Recus and RL Value for the entire calendar year 2014
11.7%1) 9.5%2)
(2) NWC/Revenues of 9.5% excludes Recus and RL Value acquisitions
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)
Key highlights Operating Cash Flow (€m)
Operating Cash Flow
30
(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
€m 2011 2012 2013 2014
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
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
Capital Structure
31 (1) Adjusted Net Debt is calculatd as IFRS Net Debt plus capitalised financing fees
Key highlights Capitalization table (€m)
€m 2013 H1'14 9M'14 2014
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)
IFRS Net Debt 722,2 512,1 488,9 487,6
Net Debt/ LTM EBITDA 4,8x 3,3x 3,1x 3,0x
Adjusted Net Debt (1) 750,8 531,3 507,3 505,2
Adjusted Net Debt/ LTM EBITDA 5,0x 3,4x 3,2x 3,2x
Table of Contents
32
Financial Review 3
Highlights 1
Trading Outlook 4
Business Review 2
Appendices 5
Trading Outlook for 2015
Consolidated Revenues
EBITDA Margins
M&A
33
• Yearly revenues expected to grow as in the recent past
Stable at the consolidated level, thanks to operating leverage
in each single division coupled with the mix effect
Continuing effort to identify accretive bolt-on targets in core
and adjacent markets with a focus on the Italian market
Table of Contents
34
Financial Review 3
Highlights 1
Trading Outlook 4
Business Review 2
Appendices 5
Basis for Financial Information
35
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)
Profit and Loss
36
Source: Company Information (2011 and 2012 restated financials; 2013 aggregate financials) (1) Includes ‘Other income’
€m 2011 2012 2013 2014
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)
Impairment of receivables and other provisions (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
Income 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
37
Balance Sheet
Source: Company Information (2011 and 2012 restated financials; 2013 aggregate financials) (1) Non cash item (2) Net of capitalized financing fees
€m 2011 2012 2013 2014
Intangible 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 588,1 556,1 1.241,3 1.223,4
Inventories 0,0 0,1 1,3 0,7
Trade receivables 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 receivables 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 Leaving Indemnity (9,8) (9,6) (10,9) (13,1)
Provisions (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 1.093,3 1.092,7
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 1.093,3 1.092,7
38
Cash Flow
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)
€m 2011 2012 2013 2014
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
Interests 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)
IPO Capital Increase (net of IPO costs) - - - 220,2
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)
39
Reconciliation CIS SpA – CG SpA
(1) Consultancy & Other Operating Costs includes consultancy fees, audit fees, board remuneration, travel costs, marketing
Profit & Loss
FY'14EBITDA
Depreciation &
Amortization
Non recurring
items
Financial income &
expensesTaxes 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
CapitalEquity NFP
Cerved Information Solutions 1.223,4 40,4 (19,0) (127,8) (24,2) 1.092,7 605,1 487,6
Trade Receivables 0,3 0,3
Trade Payables 0,6 0,6
Other receivables/payables 0,9 0,9
Employees Leaving 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
Adjusted Net Income Bridge
Source: Company Information (2011 and 2012 restated financials; 2013 aggregate financials) Note: PPA Amortization refers to business aggregation processes
40
€m 2011 2012 2013 2014
Reported Net Income 16,9 5,1 8,0 12,0
Non recurring income and expenses 5,0 (2,5) 7,4 4,5
Shareholders Fee 2,2 2,2 - -
Capitalized financing fees 3,2 3,2 4,1 3,4
Earn-out - 26,8 - -
Database costs 12,7 - - -
PPA Amortization 49,5 53,1 39,4 42,9
Financial charges non-recurring - - - 10,1
IRS termination - - - 1,0
Fiscal Impact of above components (22,7) (25,3) (15,8) (18,9)
Adjustments 50,0 57,5 35,1 43,0
Adjusted Net Income 66,9 62,6 43,0 55,0
