q1 results to 31 march 2015 - cerved company q1... · q1'2015 group ebitda ebitda bridge...
TRANSCRIPT
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
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
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%
% / % Total Growth % / Organic Growth %
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%
% / % Total Growth % / Organic Growth %
+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
Revenues (€m) and Revenue growth (%)
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 (€m) and EBITDA margin (%)
% EBITDA margin
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
% 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
EBITDA (€m) and EBITDA margin (%)
Key highlights
Key highlights
Revenues (€m) and Revenue growth (%)
% 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)
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
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
Reported Net Income 8,0 12,0 1,5 6,1
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
Adjusted Net Income 43,0 55,0 9,8 14,7
Cerved Information Solutions S.p.A. Via San Vigilio, 1 - 20142 Milano
Tel. +39 02 77541 Fax +39 02 76020458
company.cerved.com