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    CERV   IT0005010423

CERVED GROUP S.P.A.

(CERV)
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Cerved S p A : Preliminary results as of 31 December 2020

02/11/2021 | 12:24pm EDT

PRESS RELEASE

CERVED GROUP: THE BOARD OF DIRECTORS EXAMINES PRELIMINARY FIGURES ON REVENUES, ADJUSTED EBITDA AND NET FINANCIAL POSITION AS OF DECEMBER 31, 2020

RESULTS IN LINE WITH THE GUIDANCE COMMUNICATED IN NOVEMBER 2020

INVESTOR DAY ON MARCH 26, 2021

  • • Consolidated revenues: € 488.3 million, -6.2% compared to the 520.6 million of the year 2019;

  • • Consolidated Adjusted EBITDA1): Euro 202.9 million, -14.2% compared to 236.6

million in 2019, with a margin on revenues of 41.6%;

  • • Consolidated Net Financial Debt: Euro 587.7 million at 31 December 2020, equal to 2.9x the Adjusted EBITDA.

1) Adjusted EBITDA excludes the impact of the Performance Share Plan with reference to the plan 2019-2021 and plan 2022-2024

San Donato Milanese, 11 February 2021 - The Board of Directors of Cerved Group S.p.A. (MTA: CERV, the "Company"), the largest information provider and credit servicer in Italy, has examined today the preliminary figures on Revenues, Adjusted EBITDA and Net Financial Position as of December 31, 2020.

Please note that the audit of such financial results is ongoing and that the 2020 financial statements with complete and final data for the period will be examined by the Board of Directors on 25 March 2021.

Andrea Mignanelli, Chief Executive Officer of the Group, commented:

"Within the context of a pandemic emergency and an unprecedented economic crisis, the preliminary results of 2020 confirm Cerved's solidity, its ability to rapidly introduce innovations to the market and the centrality of our role in the Italian economic system. The different mix of services in the data core business and the greater volatility of Credit Management led to an impact margins.

We slightly exceeded the guidance on Revenues and EBITDA that we had provided in November, mainly thanks to the contribution of the Risk Management and Growth Services divisions. These divisions, which account for over two thirds of the Group's revenues, held up, leveraging on the record results of the Financial Institutions segment and MBS Consulting. The timely launch of the Covid-19 Impact Assessment services and our support to banks in their provision of guaranteed loans supported the income statement, reaffirming our central role in the economic and financial system. The Credit Management division suffered in the area of banks credit management, mainly due to the effects of the pandemic on liquidity and court activities, while the other areas did well (primarily credit collection and legal services).

From a financial point of view, the leverage ratio increased at 2.9x at the end of 2020, reflecting an important operating cash flow despite significant investments in M&A and non-recurring costs related to the refinancing and rescheduling of the debt. The cash generation and the level of leverage continue to offer the Group ample financial flexibility in pursuing its M&A and dividend policy strategy.

We have scheduled our third Investor Day on March 26, 2021: it will be an opportunity to illustrate our development strategy, the Group's medium-long term economic-financial objectives, in the light of an in-depth analysis of 2020 results.

Analysis of Preliminary Revenues

In 2020, the Group's consolidated revenues decreased by 6.2%, reaching Euro 488.3 million compared to the 520.6 million of the previous year (- 9.4% on an organic basis).

The performance of the business units in 2020 is in line with the trend seen in the first nine months of the year. The Risk Management business unit recorded significant growth in the Financial Institutions segment thanks to the stability of Business Information services and new support services to banks in the provision of loans guaranteed by the Fondo Centrale di Garanzia. With reference to the Corporates segment, the Covid-19 Impact Assessment services partially offset the lower consumption of the companies that suffered during the lockdown period. The Growth Services business unit has grown both externally with the consolidation of the companies acquired in 2019 in the consulting services sector, and internally with the Atoka marketing intelligence services which will be an engine of growth in the future. The decline suffered by the Credit Management business unit is mainly due to the slowdown in court activities, particularly marked during the lockdown in the second quarter, as well as to lower business volumes related to a servicing contract in 2020.

Consolidated Revenues in millions of Euro

Full Year 2019

Full Year 2020

% Growth

Consolidated Revenues

520.6

488.31

(6.2%)

Divisional Revenues in millions of Euro

Full Year 2019

Full Year 2020

% Growth

Risk Management - Financial Institutions Risk Management - Corporates

126.2 131.2

4.0%

158.0 142.4

(9.9%)

Risk Management

Growth Services Credit Management

284.2 51.5 184.9

273.6 60.5 152.7

(3.7%)

17.5%

(17.4%)

Divisional Revenues

520.6

486.8

(6.5%)

1) Includes €1.5m of capital gain deriving from the sale of the Turin real estate property

Analysis of Consolidated Adjusted EBITDA

Consolidated Adjusted EBITDA of Euro 202.9 million in 2020 represents a decrease of 14.2% compared to the previous year. The Group's consolidated adjusted EBITDA margin was 41.6%, compared to 45.4% in the previous period.

The Risk Management business unit recorded an Adjusted EBITDA margin of 50.7%, down from 53.5% in 2019. The Growth Services business unit recorded an Adjusted EBITDA margin of 26.6%, higher than the 25.0% in 2019. The Credit Management business unit, on the other hand, had a margin of 30.6%, down compared to the Adjusted EBITDA margin of 38.8% of the previous year.

Consolidated Adjusted EBITDA in millions of Euro

Full Year 2019

Full Year 2020

% Growth

Consolidated Adjusted EBITDA

236.6

202.91

(14.2%)

Divisional Adjusted EBITDA in millions of Euro

Full Year 2019

Full Year 2020

% Growth

Risk Management Growth Services

152.0 12.9

138.6 16.1

(8.8%) 24.8%

Credit Management

71.7

46.8

(34.7%)

Divisional Adjusted EBITDA

236.6

201.5

(14.8%)

Divisional Adjusted EBITDA Margin Risk Management

45.4%

41.4%

Growth Services Credit Management

53.5% 25.0% 38.8%

50.7% 26.6% 30.6%

1) Includes €1.5m of capital gain deriving from the sale of the Turin real estate property

Analysis of Consolidated Net Financial Position

At 31 December 2020, the Group's Net Financial Position amounted to Euro 587.7 million compared to Euro 549.5 million at 31 December 2019. The ratio between Net Financial Position and Adjusted EBITDA for the last 12 months was 2.9x at December 31, 2020, compared to 2.3x in the previous year.

Consolidated Net Financial Position in millions of Euro

As of 31 December 2019

As of 31 December 2020

Net Financial Position

LTM Adjusted EBITDA Multiple1

549.5 2.3x

587.7 2.9x

1) Proformated to include the EBITDA of the M&A acquisitions in the 12 months preceding the selected period

Investor Day 2021

On March 26, 2021, the Cerved Group will present the Strategic Outlook 2021-2023 to investors and financial analysts as part of its Investor Day. Management will illustrate the main dynamics of the Group's business units, the strategy that will be pursued in the medium-long term, the growth expectations on a divisional and consolidated basis, the capital structure and the dividend policy, as well as an in-depth analysis of the 2020 results.

A detailed agenda of the event and how to access the webcast will be made available on the Company's website in the Investor Relations. An extract of the Strategic Outlook 2021-2023 and the analysis of the financial results as at 31 December 2020 will be made available via a press release on 25 March in the Press Release Price Sensitive section.

***

According to paragraph 2 of article 154-bis of the TUF, the executive appointed to draft corporate accounts, Mrs Francesca Perulli, stated that the accounting information herein contained tallies with the company's documentary evidence, ledgers and accounts.

The Consolidated Financial Statement as of December 31, 2020, will be made available, in accordance with terms imposed by current law, at the registered office of the Company (Via dell'Unione Europea n. 6A/6B - 20097, San Donato Milanese), on the authorised storage system eMarketSTORAGE (www.emarketstorage.com) and on the Company website (http://company.cerved.com, Investor Relations area, Financial Statements).

***

Thanks to a unique asset of data, evaluation models, innovative technological solutions and a team of experts and analysts, Cerved Group every day helps about 30,000 companies, public administrations and financial institutions to manage the opportunities and risks of their business relationships. Cerved Group supports customers in the planning and implementation of commercial and marketing strategies. It is one of the most important independent operators in the evaluation and management of loans - both performing and problematic - and of connected assets, supporting customers in each phase of credit life. Finally, Cerved owns, within the group, one of the most important Rating Agencies in Europe.

***

Contacts:Cerved Group Investor Relations Pietro Masera ir@cerved.com

Close To Media

Luca Manzato 335-8484706

Nicola Guglielmi 366-6190711

Tel. 02-70.00.62.37

Disclaimer

Cerved Information Solutions S.p.A. published this content on 11 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 February 2021 17:22:03 UTC.


© Publicnow 2021
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Sales 2021 515 M 612 M 612 M
Net income 2021 68,6 M 81,5 M 81,5 M
Net Debt 2021 497 M 591 M 591 M
P/E ratio 2021 27,4x
Yield 2021 2,56%
Capitalization 1 860 M 2 205 M 2 209 M
EV / Sales 2021 4,58x
EV / Sales 2022 4,21x
Nbr of Employees 2 656
Free-Float 90,5%
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Number of Analysts 6
Average target price 10,23 €
Last Close Price 9,73 €
Spread / Highest target 23,3%
Spread / Average Target 5,17%
Spread / Lowest Target -5,45%
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NameTitle
Andrea Mignanelli Chief Executive Officer & Director
Emanuele Bona Chief Financial Officer
Gianandrea de Bernardis Executive Chairman
Fabio Cerchiai Lead Independent Director
Mara Anna Rita Caverni Independent Director
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