PRESS RELEASE

Coface confirms its very good start to the year with a net
income of €142.3m, up 10%
Paris, 5 August 2024 – 17.35••••

Turnover: €923m, down -3.1% at constant FX and perimetero Credit insurance premiums down -5.3%; client activity remains slightly negativeo Client retention still high (92.8%) but down from 2023 record; pricing effect remained negative(-1.4%) in line with historical trends
o Renewed double-digit growth in information services (+16.9% at constant FX) and debt collection(+20.3% vs. a low base); factoring down -2.6% but up 1.0% in Q2
Net loss ratio at 35.0%, improved by 5.3 ppts; net combined ratio at 63.4%, improved by 3.2 ppts
o Gross loss ratio at 32.5%, improved by 6.9 ppts with stable opening reserving and high reserve
releaseso Net cost ratio up by 3.2 ppts to 28.4%, reflecting lower revenues, offset by a better product mix,
while we continue to invest
Net income (group share) at €142.3m, including €73.8m for Q2-24 and annualised RoATE1 at 15.3%
Estimated solvency ratio at 195%2, above the target range (155%-175%)
Unless otherwise indicated, change comparisons refer to the results as at 30 June 2023

Xavier Durand, Coface’s Chief Executive Officer, commented:“Our results reflect the disciplined execution of our strategy and a still sluggish economic environment. The
continuing decline in inflation and the lack of a rebound in our clients’ activities are reflected in a fall in our
insurance revenues of 5.3%, from a record high comparison basis.
In line with our strategic priorities, our service revenues (information services, debt collection) once again
recorded double-digit growth, limiting the decline in our overall turnover to 3.1%.
Our combined ratio was resilient at 63.4%, an excellent level, due to our successful risk management. We
benefited from the past rise in interest rates to record an increase in financial income.
Our net income rose once again, to €142.3m, which corresponds to a return on average tangible equity of
15.3%, well above our mid-cycle targets.
Our solvency ratio remains very high, at 195%, which provides our clients with a high level of security while
enabling us to seize growth opportunities as they arise.”

Return on average tangible equity
This estimated solvency ratio is a preliminary calculation made according to Coface’s interpretation of Solvency II regulations and using the Partial Internal Model.
The final calculation may differ from this preliminary calculation. The estimated solvency ratio is not audited.
12First half 2024 results

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PRESS RELEASE
Key figures at 30 June 2024
The Board of Directors of COFACE SA examined the consolidated financial statements at 30 June 2024 at its meeting of
5 August 2024. The Audit Committee at its meeting on 2 August 2024 also previously reviewed them. These interim
consolidated financial statements have been subject to limited review by the statutory auditors. The limited review
report is being issued.
Income statements items in €m

H1-23

H1-24

Variation% ex. FX*Gross earned premiums

803.1

754.3

(6.1)%(5.3)%

Other revenues

156.6

168.5

+7.6%

+7.9%

REVENUE

959.7

922.7

(3.8)%(3.1)%

198.8

195.0(1.9)%(0.5)%

1.440.8+2,779%+2,521%

Insurance Finance Expenses-14.7-18.1+22.8%+33.0%CURRENT OPERATING INCOME

185.5

217.7

+17.3%+15.4%

Other operating income / expenses-0.7-0.5(26.1)%(23.3)%OPERATING INCOME

184.8

217.2

+17.5%+15.6%NET INCOME (GROUP SHARE)

128.8

142.3

+10.4%+7.3%

Key ratios

H1-23

H1-24

Variation

Loss ratio net of reinsurance

40.3%

35.0%

(5.3)

ppts

UNDERWRITING INCOME/LOSS AFTERREINSURANCE
Investment income, net of management
expenses,
excluding finance costs

Cost ratio net of reinsurance

25.2%

28.4%

3.2ppts

COMBINED RATIO NET OF REINSURANCE

65.5%63.4%(2.1)

ppts

Balance sheet items in €m2023

H1-24Variation

Total equity (group share)

2,050.8

2,002.9(2.3)%

H1-23

H1-24

1195%1Solvency ratio

192%+3ppts* Also excludes scope impact
1
This estimated solvency ratio constitutes a preliminary calculation made according to Coface’s interpretation of Solvency II regulations and using the Partial
Internal Model. The final calculation may differ from this preliminary calculation. The estimated solvency ratio is not audited.

First half 2024 results

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PRESS RELEASE
1.

TurnoverIn the first half of the year, Coface recorded a consolidated turnover of €922.7m, down -3.1% at constantperimeter and FX compared to H1-23. As reported (at current FX and perimeter), turnover was down -3.8%.
Revenues from insurance activities (including bonding and Single Risk) were down by -5.3% at constant FX andperimeter due to a decline in inflation and the absence of a rebound in client activities. Client retention remains
high at 92.8% (down -1.6% on H1-23), in a competitive market where Coface implemented risk mitigation plans.
Buoyed by an increase in demand and the positive effects of investments for growth, new business rose to€69m, up €6m compared to H1-23.
Client activities have not returned to growth and were slightly negative over the first half of the year (-0.1%). The
price effect remained negative at -1.4% in H1-24, in line with long-term trends. This is largely due to very low
past losses offset by the current normalisation environment.
Turnover from non-insurance activities was up +7.9% compared to H1-23. Factoring turnover was down by -2.6%
over the first half of the year. However, it increased by 1.0% in Q2-24. Information services turnover rose +16.9%.
Fee and commission income (debt collection commissions) increased by +20.3%, from a low base, due to theincrease in claims to be collected. Commissions were up +8.9%.
Total revenue - in €m(by country of invoicing)Northern Europe
Western Europe
Central and Eastern Europe
Mediterranean & Africa
North America
Latin America
Asia PacificTotal GroupH1-23200.1
194.3
91.1
267.0
85.454.567.3959.7

H1-24Variation% ex. FX1

185.0
187.6
87.0
276.0
88.7
38.2
60.2
922.7

(7.5)%(3.4)%(4.5)%+3.4%+3.8%(29.9)%(10.6)%(3.8)%(7.5)%(3.8)%(7.3)%+6.0%(6.9)%(7.8)%(9.4)%(3.1)%In Northern Europe, turnover was down by -7.5% at constant and current FX. The region was hit by a slowdown
in client activities and the selective non-renewal of some loss-making policies. This decline was partially offset
by the growth in adjacent activities. Factoring revenues were down -1.5%, an improvement compared to theprevious quarter.
In Western Europe, turnover was down by -3.8% at constant FX (-3.4% at current FX). The slowdown in client
activities was partially offset by the rise in information sales.
In Central and Eastern Europe, turnover fell -7.3% at constant FX (-4.5% at current FX) due to the decline in client
activities, which weighed on credit insurance. Factoring was down -6.9% at constant exchange rates.
In the Mediterranean and Africa region, which is driven by Italy and Spain, turnover rose +6.0% at constant FX
and +3.4% at current FX on the back of robust sales in credit insurance and services and a stronger economicenvironment.

1Also excludes scope impact

First half 2024 results

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PRESS RELEASEIn North America, turnover was down -6.9% at constant FX but increased by +3.8% at current FX due to theintegration of Mexico. The region saw a slowdown in client activities despite higher retention.
In Latin America, turnover fell by -7.8% at constant FX and -29.9% at current FX. The region was hit by a decline
in client activities, mainly in commodities and metals, and the transfer of Mexico to the North America region.
In Asia-Pacific, turnover decreased by -9.4% at constant FX and -10.6% at current FX, due to a slowdown in clientactivities.

2. Result–Combined ratio

The combined ratio net of reinsurance stood at 63.4% for H1-24 (an improvement of 2.1 ppts year on year andalmost flat against the previous quarter).

(i) Loss ratio
The gross loss ratio stood at 32.5%, a 6.9-ppt improvement on the first half of the previous year. This
improvement reflects the gradual normalisation of the loss experience, offset by high reserve releases. The
number of mid-sized claims increased but remains below long-term trends.
The Group’s provisioning policy remained unchanged. The amount of provisions related to the underwriting
year, although discounted, remained in line with the historical average. Strict management of past claims
enabled the Group to record 44.4 ppts of recoveries.
The net loss ratio improved by 5.3 ppts compared to H1-23, at 35.0%.

(ii) Cost ratio
Coface is pursuing a strict cost management policy while maintaining its investments, in line with the Power
the Core strategic plan. In H1-24, costs rose by +6.5% at constant perimeter and FX, and +6.3% at current FX.
The cost ratio net of reinsurance was 32.6% in H1-24, up 3.0 ppts year on year. This rise was mainly due to thedecline in revenues (1.0 ppt), embedded cost inflation (1.9 ppts) and ongoing investments (1.6 ppts). In contrast,
the improved product mix (information services, debt collection and fee and commission income) had apositive effect of 1.5 ppts. High reinsurance commissions explain the remainder of the variation.

First half 2024 results

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PRESS RELEASE–Financial result

Net financial income was +€40.8m over the first half of the year. This amount includes realised capital gains(+€10.1m), which more than offset negative market value adjustments on investments (-€4.2m) and an FX effectof -€7.0m, mostly due to the rise in the euro against most other currencies in which the Group does business.
The portfolio’s current yield (i.e. excluding capital gains, depreciation and FX) was €48.0m. The accounting
yield1, excluding capital gains and fair value effect, was 1.5% in H1-24. The yield on new investments was 4.5%.
Insurance Finance Expenses (IFE) stood at €18.1m for the first half due to higher discount rates and higher loss
reserves.

–

Operating income and net income

Operating income amounted to €217.2m in H1-24, up 17.5%.
The effective tax rate was 27% over the first half of the year (vs. 24% for H1-23).
In total, net income (group share) was €142.3m, up 10.4% compared to the first half of 2023.

3. Shareholders’ equity
As of 30 June 2024, Group shareholders’ equity stood at €2,002.9m, down €47.8m, or -2.3% (comparedto €2,050.8m at 31 December 2023).
These changes are mainly due to the positive net income of €142.3m and the dividend payment of -€194.3m.
Other items such as changes in unrealised capital gains had only a minor impact.
The annualised return on average tangible equity (RoATE) was 15.3% at 30 June 2024, mainly due to theimprovement in financial income.
The solvency ratio stood at 195%2, up 3 points compared to H1-23. It remains well above the upper end of thetarget range (155%-175%).

Book yield calculated on the average of the investment portfolio excluding non-consolidated subsidiaries.
This estimated solvency ratio is a preliminary calculation made according to Coface’s interpretation of Solvency II regulations and using the Partial Internal Model.
The final calculation may differ from this preliminary calculation. The estimated solvency ratio is not audited.
12First half 2024 results

Page 5 / 8PRESS RELEASE
4. Outlook

Coface has slightly raised its global growth forecast to 2.5% for 2024, and expects 2.7% in 2025. China and theUnited States continue to post moderate growth, offset by the performance of some emerging countries. Thesefigures are substantially lower than the pace of growth recorded over the past decade.
On inflation, the rebalancing of the labour market in the United States is good news after the significant
tensions caused by labour shortages. However, persistent moderate inflation confirms that it will be very
difficult to bring inflation back in line with central bank targets. The target of 2% will only be attainable at thecost of a decline in the labour market or companies’ operating margins, with the risk of a renewed increase incompany failures.
Political risk remains higher than ever with many elections still to come and several conflicts that have potential
to take a turn for the worse. The surprise dissolution of the National Assembly in France has put decisions onhold, which is bad news for economic activity as Paris hosts the Olympic Games, which will provide a temporaryboost.
The US presidential election remains the major political event for the end of the year and has already broughta run of surprises.
In this environment of continued uncertainty and with a modest growth outlook, Coface continues toimplement its Power the Core strategic plan. The first half of 2024 marked an excellent start to this plan, withmost key performance indicators positive.

Conference call for financial analysts
Coface’s H1-2024 results will be discussed with financial analysts during the conference call on Monday 5 August
at 18.00 (Paris time). Dial one of the following numbers:•By webcast: Coface H1-2024 results - Webcast•

By telephone (for sell-side analysts): Coface H1-2024 results - Conference call

The presentation will be available (in English only) at the following address:
http://www.coface.com/Investors/financial-results-and-reports

First half 2024 results

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PRESS RELEASE
Appendices
Quarterly results
Income statements items in €m
Quarterly figures
Insurance revenue
Other revenues
REVENUEUNDERWRITING INCOME (LOSS)
AFTER REINSURANCE
Investment income, net of management
expenses,
excluding finance costs
Insurance Finance Expenses
CURRENT OPERATING INCOME
Other operating income / expenses
OPERATING INCOME

Q1-23

Q2-23

Q3-23

Q4-23

Q1-24

Q2-24

395.3
79.8
475.1

407.8
76.8
484.5

384.7
73.4
458.1

371.3
79.2
450.4

378.6
85.0
463.7

375.6
83.4
459.1

(7.9)%+8.7%(5.3)%%ex. FX*(7.2)%+8.8%(4.6)%

95.3

103.5

91.2

105.4

100.3

94.7

(8.5)%(6.9)%

(2.6)

4.0

13.0

(2.0)

17.9

22.8

+467.5%+431.8%

(2.4)
90.4

(12.3)
95.2(15.4)
88.9(9.9)
93.5-11.4
106.8

-6.7
110.9

(46.1)%+16.5%(41.7)%+16.1%(0.3)
90.0(0.4)
94.8(0.2)
88.6(4.0)
89.5

-0.1
106.8

-0.5
110.4

+23.0%+16.5%+25.2%+16.1%+9.2%%

NET INCOME (GROUP SHARE)

61.2

67.7

60.9

50.8

68.4

73.8

+9.1%

Income tax rate

25.5%

21.9%

24.2%

36.0%

27.2%

26.8%

+4.8 ppts

Cumulated results
Income statements items in €m
Cumulated figures
Insurance revenue
Other revenues
REVENUEUNDERWRITING INCOME (LOSS)
AFTER REINSURANCE
Investment income, net of management
expenses,
excluding finance costs
Insurance Finance Expenses
CURRENT OPERATING INCOME

Q1-23

H1-23

9M-23

2023

Q1-24

H1-24%

395.3
79.8
475.1

803.1
156.6
959.7

1,187.8
230.0
1,417.8

1,559.1
309.2
1,868.2

378.6
85.0
463.7

754.3
168.5
922.7

(6.1)%+7.6%(3.8)%%
ex. FX*(5.3)%+7.9%(3.1)%

95.3

198.8

290.0

395.4

100.3

195.0

(1.9)%(0.5)%

(2.6)

1.4

14.5

12.4

17.9

40.8

+2,779%+2,520,5%(2.4)
90.4(14.7)
185.5(30.1)
274.4(40.0)
367.9(11.4)
106.8(18.1)
217.7+22.8%+17.3%+33.0%+15.4%(0.3)
90.0(0.7)
184.8(0.9)
273.4(5.0)
362.9

(0.1)
106.8(0.5)
217.2(26.1)%+17.5%(23.3)%+15.6%NET INCOME (GROUP SHARE)

61.2

128.8

189.7

240.5

68.4

142.3

+10.4%+7.3%

Income tax rate

25.5%

23.7%

23.8%

26.8%

27.2%

27.0%

+3.3 ppts

Other operating income / expenses
OPERATING INCOME* Also excludes scope impact

First half 2024 results

Page 7 / 8

PRESS RELEASECONTACTSANALYSTS / INVESTORS

Thomas JACQUET: +33 1 49 02 12 58 – thomas.jacquet@coface.com

MEDIA RELATIONS

Saphia GAOUAOUI: +33 1 49 02 14 91 – saphia.gaouaoui@coface.com
Adrien BILLET: +33 1 49 02 23 63 – adrien.billet@coface.com
FINANCIAL CALENDAR 2024
(subject to change)
9M-2024 results: 5 November 2024 (after market close)
FINANCIAL INFORMATIONThis press release, as well as COFACE SA’s integral regulatory information, can befound on the Group’s website: http://www.coface.com/Investors
For regulated information on Alternative Performance Measures (APM), please refer to our Interim
Financial Report for H1-2024 and our 2023 Universal Registration Document (see part 3.7 “Keyfinancial performance indicators”).
Regulated documents posted by COFACE SA have been secured and authenticated withthe blockchain technology by Wiztrust.
You can check the authenticity on the website www.wiztrust.com.

COFACE: FOR TRADE
With over 75 years of experience and the most extensive international network, Coface is a leader
in trade credit insurance & risk management, and a recognized provider of Factoring, Debt
Collection, Single Risk insurance, Bonding, and Information Services. Coface’s experts work to thebeat of the global economy, helping around 100,000 clients in 100 countries build successful,growing, and dynamic businesses. With Coface’s insight and advice, these companies can makeinformed decisions. The Group' solutions strengthen their ability to sell by providing them withreliable information on their commercial partners and protecting them against non-payment
risks, both domestically and for export. In 2023, Coface employed ~4,970 people and registered aturnover of €1.87 billion.
www.coface.com
COFACE SA is quoted in Compartment A of Euronext Paris
Code ISIN: FR0010667147 / Ticker: COFADISCLAIMER - Certain declarations featured in this press release may contain forecasts that notably relate to future events,
trends, projects or targets. By nature, these forecasts include identified or unidentified risks and uncertainties, and may beaffected by many factors likely to give rise to a significant discrepancy between the real results and those stated in thesedeclarations. Please refer to chapter 5 “Main risk factors and their management within the Group” of the Coface Group's 2023
Universal Registration Document filed with AMF on 5 April 2024 under the number D.24-0242 in order to obtain a description ofcertain major factors, risks and uncertainties likely to influence the Coface Group's businesses. The Coface Group disclaims anyintention or obligation to publish an update of these forecasts, or provide new information on future events or any othercircumstance.

First half 2024 results

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