Aucun titre de diapositive

1
COFACE PRESENTATION
last update 8 October 2007
2
Coface Background
3
Coface history
Coface is created as an insurance company
specialised in export credit insurance, managing
its own products and French government export
guarantees.
1946
1988
Coface buys into Coface Scrl, extending its
product range to company information and
receivables management.
1992
Coface launches its international development in
the United Kingdom and Italy (with Viscontea
Coface) and creates the CreditAlliance world
network of credit insurance partners.
1994
Coface is privatised.
Coface acquires the German and Austrian credit
insurers AK and OKV respectively, which have
become Coface Deutschland and Coface Austria.
1996
1999
Coface extends its product range to include
factoring with the creation of AKCF in Germany.
2000
Coface enhances its information line by
launching _at_rating the first worldwide, insurable
credit rating system.
4
Coface history
Natexis Banques Populaires becomes the majority
shareholder.
Coface strengthens its position in France (buying
into Axa Assurcrédit) and abroad (acquisition of
the second-ranking American credit insurers
portfolio issuance with the insurance partner
Ping An of Chinas first credit insurance policy).
Natexis Banques Populaires acquires 100
ownership of Coface. The acquisition of Ort
strengthens Cofaces position as French leader in
information
Acquisition of credit insurer in South Africa,
CUAL, and of Lithuanian credit insurer LEID,
Gain major share in Israeli business information
company BDI, Launch of Strategic Plan 2005-2007


5
Coface history
Creation of Coface Services 1 January 2006
(merger of Coface Scrl and Coface Ort) Creation
of Coface Algérie. Purchase of a leading American
provider of receivables management services
(Newton Associates Holding Company). Acquisition
of a stake in Cerved, Italian leader in business
information. Development of commercial offer in
countries where Coface is present 2 new
countries for company information, 10 for
receivables management, 4 for credit insurance
and 4 for factoring. Creation of Natixis on 17
November 2006, bringing together the financing,
investment asset management and financial
services banking activities of the Banque
Populaire and Caisse d'Epargne groups. Acquisition
of Kompass France, Kompass Belgium and Spanish
branch office


6
Coface Key figures
7
Key figures

• No. 1 in trade receivables in France
• No. 3 in the world in credit insurance
• No. 6 in the world in receivables management
• No. 7 in the world in company information
• No. 6 in the world in factoring
• 6 000 employees
• 105,000 clients
• Over 45 of the 500 largest international
  groups are already Coface clients
• Offices in 64 countries
• Local service offering in 93 countries via the
  Coface offices and the global

Cofacs aim is to become world n1 in trade
receivables in 2015
8
Key figures
Change
2006
2005
2006/2005
In m
10.2
1,343
1,218
Consolidated turnover
10.2
Growth rate
7.7
49
49
-
Loss ratio
189
190
Operating profit
- 1
114
- 3
Net profit
117
1,012
13
Shareholders equity
893
()Calculated in Light IFRS, without standards
IAS 32 and 39 being applied.
9
Consolidated turnover by activity
change
2006
In m
2005
2006/2005
401
Export credit
445
11.2
413
457
10.7
Domestic credit
56
52
6.6
Bonds others
10.7
866
958
Premiums written
111
3.4
Related services
107
9.9
973
1,069
Total insurance
58
Public procedures management
60
- 2.9
125
115
8.7
Company information
36
31
16.2
Receivables management
10.3
146
161
Credit management services
Factoring
54
40.0
38
1,343
10.2
Consolidated turnover 2005 data restated to take
account of activity redeployment as part of the
strategic plan
1,218
10
Consolidated turnover by country
change
2006
2005
In m
2006/2005
4.9
812
Traditional markets
774
3.4
477
461
France
7.8
285
264
Germany

51
4.1
Austria
49
530
19.5
Markets with recent local presence
444
8.6
137
127
Italy
61
23.9
49
Great Britain
40
25.0
Spain
32
112
14.0
Other European countries
98
82
63
31.2
North America
31
20
54.7
South America
66
20.7
Asia and other continents
55
1 343
10.2
1 218
Consolidated turnover
On a like-for-like operating scope and exchange
rate basis 9.8
11
Net profit
In m
2005
2006
Recurring profit
190
189
-11
-11
Finance costs
2
-1
Non-recurring income and expenses
-67
-66
Tax
4
5
Profits of associated companies
-2
-1
Minority interests
Consolidated net profit
117
114
12
Financially robust

• Book equity capital of 1012 million and restated
  equity capital of 1033 million,
• Profitable throughout its history (114 million
  on 31 December 2006),
• Coface is subsidiary of Natixis, whose share
  capital (Tier 1) was 11.2 billion euros at end
  2006 (after application of CRD/Basel II norms),
• Since the creation of Natixis, Coface enjoys the
  best ratings in the profession AA by Fitch
  Rating, AA by SP and Aa3 by Moodys.

13
Coface Trade receivables management, under
control
14
The Coface mission

• Our mission is to facilitate business-to-business
  trade throughout the world, thereby contributing
  to the development of world commerce.
• Our strategy is based on the complementarity of
  our tools, proximity to our clients and our
  service provision.
• Cofaces mission is to facilitate global
  business-to-business trade by offering companies
  the means to manage with precision the credit
  routinely agreed (of 30 days, 60 days or
  sometimes more) in the course of commercial
  relations with client-companies and suppliers in
  home and foreign markets. This credit is commonly
  known as a companys trade receivables.

15
The Coface mission

• Coface provides a four solutions for companies of
  all sizes, sectors and nationalities to help them
  optimise their trade receivables
• Credit management services (information and
  receivables management) to manage them
• Credit insurance to manage and protect them
• Receivables finance services (factoring and debt
  securisation) to manage, protect and finance
  them.
• Three complementary offerings are also provided
• guarantee insurance
• in France, public procedures management for
  export guarantees provided by the state (market
  survey cover, medium- and long-term financing
  guarantees, investment insurance, etc.).

16
The Coface Offer A full range of services
providing proven, easy-to-use tools for
receivables management
17
The Coface guarantee and service offer

• Coface provides a complete range of guarantees
  and services to help client- companies manage
  their receivables with precision and ease in
  their home markets or abroad. The offerings have
  a modular structure, enabling solutions to be
  tailored to each companys organisation and
  marketing strategy. This approach ensures that
  all needs related to customer and supplier
  portfolios are fully met.
• This range ensures that a companys entire needs
  are covered at every stage of the relations that
  it develops with its clients and suppliers.

18
1. Information and receivables management

• Companies need reliable information concerning
  trading partners financial situation and their
  ability to honour commitments (solvency
  information). They also need to identify
  potential business opportunities with
  creditworthy parties (marketing information).

19
1.1 Creditworthiness information

• Coface draws on the expertise of its network of
  credit information subsidiaries in Western Europe
  (Coface Scrl/Coface Ort and Coface Mope, who are
  the market leaders in France and Portugal
  respectively), North and South America, Central
  Europe (Coface Central Europe, one of the market
  leaders in the new European Union member
  countries), and Asia (Coface Greater China
  Services in Hong Kong), as well as its
  CreditAlliance partners.
• Through this dense web of international
  information sources, data are fed into the Common
  Risk System, which forms the backbone of the
  Cofaces credit risk rating, management,
  insurance and financing offering. The system is
  used by Cofaces 260 underwriters, and also by
  Coface clients, to obtain up-to-date information
  about 50 million companies worldwide in real
  time. It includes default data for some 340
  billion worth of commercial transactions.

20
1.1 _at_rating Line to track company solvability

• The _at_rating Line service (called the Pack
  _at_rating in France) provides secure Internet
  access to intelligence on all client-companies
  trading partners during a 12-month period. 2006
  saw the launch of a new version _at_rating Line²
  (to the power of ²), which introduces new
  services auditors opinion, payment behaviour
  indicators, access to electronic documents etc
• Thanks to its modular design, _at_rating Line is
  adapting permanently and in real time to a
  client-companys changing portfolio, and customer
  and supplier service needs.
• It carries out a quality credit check on global
  trading partners in real time using their _at_rating
  score.
• The _at_rating is constantly updated and monitored.
  It enables client-companies to obtain online
  guarantees and to manage outstanding receivables
  from all debtors in the portfolio.

21
1.1 Marketing information

• Companies need to undertake cost-effective
  marketing actions to attract new business and
  retain existing customers.
• Coface provides a vast array of services in this
  field, including the online identification and
  targeting of reliable prospects using the new
  Cofacibles platform and the Veille Dynamisme
  service for strategic customer surveillance.
  These services, available on the Internet
  (www.coface.com) and on CD-ROM, enable companies
  to tailor their requests with a view to planning
  marketing initiatives.
• The marketing information service also includes
  Internet directories and websites to showcase
  client-companies offerings. Kompass
  International is the leader in this field, thanks
  to its global-scale coverage (franchise network
  spanning more than 70 countries) and extensive
  listings (53,000 products and services accessible
  in 38 languages). The www.kompass.com website
  offers a database of 1.9 million companies
  worldwide and provides business-to-business
  players with international visibility.

22
2. Receivables management and collection

• For receivables covered by a guarantee under a
  Globalliance contract, a company benefits from
  collection services in France and abroad for
  recovery of amounts due from its clients.
• If a company has not taken out a credit insurance
  policy, it can avail of the services of Coface
  Services, which can make a comprehensive or
  flexible proposal for collections in France and
  abroad.
• For exceptionally large claims, Coface has
  created Coface RBI (Recovery Business
  Intelligence). That subsidiary provides high
  value-added international debt collection
  services that permit detecting possible defaults
  by debtors through in-depth investigations.

23
3. Credit insurance

• Companies, in the course of their trade
  relations, often have to grant their client
  companies time to make payments. To cover risks
  associated with such business-to-business credit
  which now represents twice the outstanding
  amount of short-term bank loans companies can
  resort to credit insurance through Coface.
• Whatever its form domestic, export, global,
  specific or excess loss credit insurance
  protects companies and banks against the risk of
  default by clients.

24
3.1 Global credit insurance

• In most cases, Coface provides coverage for a
  companys (or groups) entire client base,
  whether it comprises a dozen or several thousand
  clients.
• The Coface business offer in this area is centred
  on the Globalliance policy, intended for
  companies wishing to completely or partially
  outsource their accounts receivable management
  and associated risks. Globalliance is a flexible
  credit insurance policy that can be tailored to
  any companys needs, whatever its size or
  organisation, its business sector, the countries
  where it operates, or its payment-default
  coverage needs linked to client or country risks.
• Coface provides the French market with a
  comprehensive solution, Pack _at_rating
  Globalliance, for client-companies seeking both
  credit insurance protection and credit and
  marketing information. The services are delivered
  as a single relationship, with a single
  administration platform and alert system.

25
3.2 Specific (single risk) credit insurance

• A company may sometimes need specific credit
  insurance (or Single Risk) to cover financial
  risks, notably linked to the political context in
  emerging countries.
• Coface covers such risks via special contracts
  established in partnership with its subsidiary
  Unistrat Coface.

26
Excess loss credit insurance

• Depending on their own experience and
  organisational structure, companies may prefer to
  use credit insurance for exceptional credit risks
  or major losses above the excess and within the
  cover limit fixed by common agreement.
• Coface enhanced this offering in 2005 with the
  launch in France of the Excess Risk policy for
  companies seeking to protect their balance sheets
  against major losses resulting from unforeseen
  payment defaults by key customers. Responsibility
  for the customer credit management policy remains
  with the client-companys credit manager, who is
  evaluated beforehand by Coface.
• Coface has also added the Top Cover policy. The
  policy is in the form of an endorsement to the
  Globalliance contract and provides for additional
  compensation, subject to payment of an additional
  premium, where the insured amount does not cover
  the full amount outstanding.

27
4. Factoring

• The services and guarantees provided by Coface
  indirectly play a key role in companies
  receivables financing decisions. By delegating
  them to a bank (or other securitisation vehicle),
  companies can obtain the credit they need for the
  development of their commercial relations more
  easily.
• Coface provides direct receivables financing
  through its factoring operations (receivables
  purchasing) in an ever-increasing number of
  countries. It also provides services and cover to
  more than 80 factors worldwide.

28
5. Guarantee insurance

• Some companies require their suppliers to put up
  guarantees in connection with sales contracts
  and/or the posting of tax or custom bonds
• Coface is able to issue such guarantees in
  Germany, Argentina, Austria, France, Italy
  (Coface Italia is Cofaces centre of excellence
  in this field), Singapore, South Africa and the
  United Kingdom.
• Coface can also provide protection against
  unjustified recourse to guarantees (tender
  guarantees, deposit refund guarantees,
  performance bonds, etc.) issued in connection
  with sales contracts insured.

29
7. Government export guarantees

• Since 1946, Coface has been managing on the
  French governments behalf a broad range of
  guarantees intended to promote French exports.
• The guarantees concern risks not insurable by the
  private market and are for the benefit of
  companies marketing products and services
  predominantly of French origin.
• Such operations performed with a government
  guarantee give rise to distinct accounting
  entries. The government, via the French Ministry
  of Finance and Industry, sets risk underwriting
  policy, collects the premiums, and settles
  claims. The main guarantees managed by Coface in
  this respect are

30
7.1 Market survey cover

• Market survey cover
• Provides protection for French SMEs against the
  failure of canvassing actions in foreign markets.
  
• The actions concerned include the occasional
  participation in trade fairs or recognised
  symposia, and participation in long-term,
  structured canvassing programmes set up in one or
  more countries.
• Medium- and long-term export credit insurance
• Covers large-scale international projects, as
  well as capital goods export contracts with long
  delivery lead times and/or payment terms in
  excess of two years.
• The main users of this type of cover are
  industrial SMEs.

31
7.2 Guarantee public

• Exchange risk cover
• Protects exporters against unfavourable exchange
  rate fluctuations from the start of the tendering
  process. Euro-related cover was initiated in
  2005.
• Investment insurance
• Covers political risks associated with French
  companies investments outside their home markets.

32
Coface - Global _at_rating
33
8. Global _at_rating

• Global _at_rating bridges the gap between the
  various Coface business lines.
• A unique rating system of insurable trade debt
  spanning the entire globe, it is the essential
  aid for credit managers called on to make quick
  and reliable assessments of credit risks.
• _at_rating comprises Credit Opinions and scores
  supplemented by country and sector ratings.
• Credit ratings may be consulted at
  www.cofacerating.com and on the various national
  websites like www.cofacerating.de, or via the
  _at_rating Line, which enables client-companies to
  manage their client and supplier portfolios

34
8.1 _at_rating Credit Opinions

• _at_rating Credit Opinions express recommended
  credit exposures on individual companies in a
  simple manner with _at_ representing a 20,000
  limit, _at__at_ 50,000, _at__at__at_ 100,000 etc.
• Those recommended credit exposures are insurable
  by Coface via a credit insurance contract
  applicable to business-to-business commercial
  credit.
• Available for 50 million companies worldwide
  including all French companies, _at_rating Credit
  Opinion draw on Cofaces twofold expertise in
  company information and credit insurance.

35
8.2 _at_rating Score

• Developed in France in collaboration with Coface
  Services, the _at_rating Score measures the
  probability of a company defaulting over a
  one-year time frame.
• The score is based on a comprehensive analysis of
  large corporations and SMEs. It is a particularly
  useful indicator for companies of all sizes, as
  well as for financial institutions looking to
  develop a rating system that complies with the
  new international banking regulations.
• The _at_rating Score, which in 2002, was launched on
  Frances 4.5 million active companies, was rolled
  out in Germany, Greece and Portugal during 2004,
  and in Austria in 2005. 2006 should see
  deployment in eight Central European countries
  Bulgaria, Croatia, Hungary, Poland, the Czech
  Republic, Romania, Slovakia and Slovenia.

36
8.3 Country _at_rating

• Country _at_rating is the result of systematic
  monitoring of 152 countries via a panoply of
  indicators reflecting political factors, currency
  shortage risk, a countrys capacity to honour its
  commitments abroad, as well as risks of currency
  devaluation triggered by sudden capital flight or
  of systemic banking crises.
• Country _at_ratings also provide an assessment of
  economic conditions and payment behaviour on
  short-term transactions. Each country receives a
  composite rating in seven risk families.

37
8.4 Sector _at_ratings

• Sector _at_rating combine the evaluation of three
  risk factors

• Vulnerability of economic outlook for sector
• Financial solidity of companies within the sector
  (calculated using the Coface database of company
  scores)
• Payment behaviour monitored using the Coface
  database on short-term commercial transaction

• These sector scores are complementary to other
  Coface ratings, such as a company B2B ratings and
  country ratings. They are established on ten
  levels ranging from A for the lowest risks to D
  for the highest.

38
Coface - Tools
39
Coface tools

• To fulfil its corporate mission, Coface benefits
  from three exclusive tools
• Common Risk System (CRS)
• Global service capability
• Multi-channel marketing

40

• Common Risk System (CRS)

• CRS is a unique tool for credit risk management,
  credit rating and credit risk financing that
  monitors 50 million companies and flags payment
  incidents in 340 billion euros of trade flows.
• Information contained in the Common Risk System
  is consolidated in real time from hundreds of
  public and confidential sources and from
  information developed by Coface on variations in
  the capacity of companies to meet their
  commitments.
• The CRS tool is accessible to
• Cofaces staff of 400 risk-management specialists
• CreditAlliance partners and 30,000 Coface clients
  already online.

41
2. Local service capability in France
Lille
Amiens
Rouen
33 offices and regional representatives 5
platforms
Caen
Reims
Nancy
Rennes
Strasbourg
Quimper
Orléans
Nantes
Dijon
Besançon
Poitiers

Annecy
Clermont- Ferrand
IDF Ouest
Limoges
Lyon
Saint-Denis
Cergy


Grenoble
60 specialist brokers
Paris
Bordeaux
Valence
IDF Est
Versailles
Evry
Montpellier
Bayonne
Nice
Toulouse
Marseille


42

• Global service capability

• Coface provides a local service to clients in 93
  countries representing over 80 of world trade
  via
• direct presence in 64 countries with 6 000 staff
  located in 160 cities
• CreditAlliance network comprising Coface
  subsidiaries and branches worldwide, 51 credit
  insurance and company information partners and 6
  observers.

43
2. Cofaces presence in 64 countries
Poland
Bulgaria
Germany
Norway
Czech Republic
Netherlands
Austria
Croatia
Rumania
Portugal
Belgium
Estonia
Slovakia
Spain
Denmark
Hungary
Russia
Sweden
Canada
France
Latvia
Slovenia
Switzerland
Ireland
Turkey
Lithuania
California
United Kingdom
Italy
Serbia
Connecticut
Ukraine
Luxemourg
Florida
United States
Israel
Illinois
Maryland
Algeria
Emirates
New Jersey
Morocco
Morocco
New York
Mexico
Ohio
Benin
Oregon
Burkina Faso
Pennsylvania
Cameroon
Texas
Ivory Coast
Mali
Senegal
Togo
South Africa
44
2. CreditAlliance network spanning 93 countries
45

• Multi-channel marketing

• Coface pursues distribution strategy for its
  guarantees and services that permits responding
  effectively to client needs by adapting to
  national markets.
• Coface markets its product range either directly
  under its own brand name or under private labels,
  through a partnership network.
• Direct sales under the Coface brand via
  proprietary networks (with its own salesmen or
  exclusive agents) and specialised brokers.
• Indirect sales via federated partner networks
  within CreditAlliance banks insurance companies,
  service providers.
• Sales via Internet www.cofacerating.com or its
  national subsidiary sites (eg. www.cofacerating.de
  ).

46
COFACE PRESENTATION
last update 8 October 2007