Moltiply Group S.p.a. · MIL:MOL
Moltiply — Gruppo MutuiOnline — Q3 2020 Earnings Presentation
36 slides from Moltiply's earnings presentation, Nov 16, 2020
Slide 1: Third Quarter 2020 Results
Third Quarter 2020 Results November 16th, 2020
Slide 2: Disclaimer
Disclaimer Certain statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. The user of such information should recognize t
Slide 3: Presenting Today
Presenting Today Marco Pescarmona Alessandro Fracassi Francesco Masciandaro Group Chairman and Head of Broking Division Group CEO and Head of BPO Division Group CFO • Founder and key shareholder (16.05% • Founder and key shareholder • Background in auditing (Arthur indirectly through Alma Ventures S
Slide 4: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 4
Slide 5: Business portfolio
Business portfolio Online comparison and intermediation Provision of complex Business Process Broking BPO services operating with a portfolio of Outsourcing services for specific verticals leading brands in the Italian market Division Division within the Italian financial services industry Mortgage
Slide 6: Broking Division – Top brands
Broking Division – Top brands Brand Description Market Position Operations Revenue Model Multi-product Launched in September Focus on marketing activities, Commission on new policy sales aggregator for 2012, is number two player in mostly TV and Internet. With the plus (lower) renewal fees from insu
Slide 7: BPO Division – Main services
BPO Division – Main services Product Life Cycle DISTRIBUTION UNDERWRITING/CLOSING SERVICING • Commercial activities for online • Income Analysis Mortgage lenders (in lenders’ name) • Technical-Legal Analysis BPO • Centralized packaging • Anti-fraud checks • CRM activities for origination • Notary co
Slide 8: Group structure
Group structure Headcount* 1,844 FTE Group structure as of November 13th, 2020 * 2019 average 8
Slide 9: Major milestones
Major milestones START-UP GROWTH RESTRUCTURING NEW GROWTH € 219.9M € 185.1M Collapse of Italian mortgage € 152.8M market € 138.1M € 120.7M € 71.8M € 68.3M € 46.4M € 47.9M € 53.4M € 51.0M € 37.7M € 38.5M € 21.8M € 7.8M € 13.2M € 0.1M € 1.0M € 2.7M € 4.5M 2000 2001 2002 2003 2004 2005 2006 2007 2008 2
Slide 10: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 10
Slide 11: Transparency and governance standards
Transparency and governance standards Gruppo MutuiOnline is listed since IPO (June 6, 2007) in the STAR Segment of Borsa Italiana’s equity market dedicated to mid-size companies with a capitalization less than Euro 1 billion, which voluntarily adhere and comply with a number of strict requirements i
Slide 12: Shareholding Structure
Shareholding Structure Shareholding structure as of November 13th, 2020* Treasury shares 5.77% Alma Ventures** 32.10% Free Float 35.27% 5.05% 21.81% Kayne Anderson Rudnick Investmentaktiengesellschaft für Investment Management LLC langfristige Investoren TGV * Share ownership as registered in last S
Slide 13: Share Performance since IPO
Share Performance since IPO KEY STOCK DATA as of Nov. 13th, 2020 Number of Shares 40,000,000 Treasury Shares 2,309,555 Outstanding Shares 37,690,445 Price per Share € 24.55 Market Capitalisation € 925.3 M Since November 2018, MOL is included in the Italian FTSE Italia MID-CAP Index 13
Slide 14: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 14
Slide 15: Q3 highlights
Q3 highlights EBIT Revenues (€m) (€m) 20 70 15 Y-o-Y +33.5% 14.7 10 60 11.0 Y-o-Y +20.5% 58.6 5 50 0 48.6 Q3 2019 Q3 2020 40 EBIT margin 22.7% 25.2% 30 Net Income 20 (€m) 20 10 15 0 Y-o-Y Q3 2019 Q3 2020 10 +39.1% 10.6 5 7.6 0 Q3 2019 Q3 2020 NI margin 15.7% 18.1% 15
Slide 16: Performance by Division
Performance by Division EBIT Revenues (€m) (€m) 20 14.7 70 15 Y-o-Y 11.0 +33.5% Y-o-Y 58.6 10 +87.9% 60 5.5 10.4 Y-o-Y +20.5% 5 Y-o-Y 48.6 50 Y-o-Y 5.5 4.4 -20.8% 25.2 +29.2% - Q3 2019 Q3 2020 40 19.5 30 Broking Division BPO Division Y-o-Y 20 +14.7% 33.4 29.1 10 EBIT margin (percent of revenues) 0 Q
Slide 17: 9M highlights
9M highlights EBIT Revenues (€m) (€m) 50 Y-o-Y 40 +15.4% 200 42.3 30 36.7 180 Y-o-Y +14.1% 178.7 20 160 10 140 156.6 0 120 9M 2019 9M 2020 100 EBIT margin 23.4% 23.7% 80 Net Income 60 (€m) 40 50 20 40 Y-o-Y 0 30 +10.7% 9M 2019 9M 2020 28.0 31.0 20 10 0 9M 2019 9M 2020 NI margin 17.9% 17.3% 17
Slide 18: 9M Performance by Division
9M Performance by Division EBIT Revenues (€m) (€m) 50 42.3 Y-o-Y 40 36.7 +15.4% 200 Y-o-Y 178.7 30 +59.9% 180 Y-o-Y 17.8 28.5 156.6 +14.1% 20 160 Y-o-Y 10 18.9 Y-o-Y +24.8% 13.9 140 75.9 -26.5% 0 120 60.8 9M 2019 9M 2020 100 80 Broking Division BPO Division Y-o-Y 60 +7.4% 95.8 102.9 40 EBIT margin 2
Slide 19: Evolution of the Italian residential mortgage market
Evolution of the Italian residential mortgage market • In Q3 2020, after a mixed July, the residential mortgage market is growing robustly Y-o-Y, thanks to interest rates at minimums and a perceived improvement in the economic and health situation. • Data from Assofin, an industry association which
Slide 20: Broking Division – Business outlook
Broking Division – Business outlook • The Broking Division records strong growth in Q3 2020, both in terms of revenues and margins, thanks to the contribution above expectations of all Business Lines. • This performance is likely to have benefitted from an increased propensity to use remote channels
Slide 21: BPO Division – Business outlook
BPO Division – Business outlook • The results of Q3 2020 are in continuity with the trend seen in H1 2020. Revenues are slightly higher than in Q3 2019, while EBITDA is substantially stable, with a consequent reduction of the operating margin, however slightly better than in H1 2020. • At the level
Slide 22: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 22
Slide 23: Revenue trends by Division
Revenue trends by Division Group Revenues (€m) Collapse of the Italian Mortgage Market 240 219.9 200 185.1 39% 160 58% 152.8 138.1 43% 120.7 40% 120 44% 61% 44% 45% 47% 80 71.8 68.3 53.4 61% 46.4 47.9 51.0 37% 57% 37.7 58% 38.5 40 66% 40% 56% 56% 60% 61% 21.8 45% 53% 60% 63% 58% 42% 60% 40% 40% 34%
Slide 24: Revenue Breakdown by Business Line – Broking
Revenue Breakdown by Business Line 90 Broking Division Revenues 86.8 (€m) 3% 79.1 80 Other Revenues 3% E-Commerce Price Comparison 27% 70 Insurance Broking 67.2 24% Consumer Loan Broking 3% 61.0 Mortgage Broking 60 57.2 3% 2% 30% 19% 50 18% 28% 36% 41.9 6% 40 61% 6% 8% 45% 19% 31.7 32.2 25% 17% 18%
Slide 25: Revenue Breakdown by Business Line – BPO
Revenue Breakdown by Business Line 140 BPO Division Revenues 133.1 (€m) 120 24% Other revenues 106.0 Leasing/Rental BPO 100 Investment Services BPO 21% 7% Insurance BPO 85.6 6% Loans BPO 80 77.1 10% 8% Real Estate Services BPO* 11% 8% 14% 9% Mortgage BPO 63.6 8% 61% 20% 60 45% 10% 17% 11% 21% 13% 43
Slide 26: Operating Income by Division
Operating Income by Division EBIT (€m)60 Collapse of the Italian Mortgage 50.8 Market 46.1 + 39.7 40 35.2 30.9 Launch of 32.0 52% 51% Segugio.it 46% 21.9 21.5 22.0 47% 17.6 57% 20 77% 14.5 8.5 78% 93% 84% 36% 49% 48% 77% 5.6 53% 54% 3.6 43% 67% 23% 80% 32% 64% 0 33% 23% 22% 7% 16% 20% 68% 2006 2007
Slide 27: Net Income
Net Income Net income (€m) 50 40.6 40 34.4 30 27.5 23.5 24.8 20.9 20 14.8 15.3 14.4 9.7 9.9 10 5.2 3.6 3.8 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net income margin (%) 40% 31.9% 30.1% 28.7% 29.1% 30% 25.7% 23.9% 19.5% 18.0% 18.0% 18.6% 18.5% 20% 14.5% 9.4% 10% 7.5% 0
Slide 28: Dividend Payout
Dividend Payout Earnings per share, consolidated Dividends per outstanding share (€) (€) 1.20 1.20 1.07 1.00 1.00 0.89 0.80 0.80 0.69 0.59 0.58 0.60 0.56 0.60 0.41 0.38 0.38 0.36 0.37 0.40 0.40 0.30 0,30 0,30 0.25 0.24 0.21 0.20 0.20 0.15 0.12 0.12 0.12 0.12 0,12 0.09 0.09 0.09 0.00 0.00 2007 2008 2
Slide 29: Appendix
Teh Appendix
Slide 30: Quarterly Profit & Loss
Quarterly Profit & Loss (€000) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Revenues 58,616 61,954 58,142 63,332 48,627 Other income 939 1,069 840 1,145 1,179 Capitalization of internal costs 778 1,166 769 585 540 Service costs (23,273) (24,389) (24,940) (24,718) (18,947) Personnel costs (16,743) (17,971
Slide 31: Q3 Profit & Loss
Q3 Profit & Loss (€000) Q3 2020 Q3 2019 % Var. Revenues 58,616 48,627 20.5% Other income 939 1,179 -20.4% Capitalization of internal costs 778 540 44.1% Service costs (23,273) (18,947) 22.8% Personnel costs (16,743) (15,579) 7.5% Other operating costs (2,202) (2,012) 9.4% Depreciation and amortizati
Slide 32: 9M Profit & Loss
9M Profit & Loss (€000) 9M 2020 9M 2019 % Var. Revenues 178,712 156,603 14.1% Other income 2,848 3,065 -7.1% Capitalization of internal costs 2,713 1,632 66.2% Service costs (72,602) (61,221) 18.6% Personnel costs (52,407) (49,799) 5.2% Other operating costs (6,863) (5,324) 28.9% Depreciation and am
Slide 33: Balance Sheet – Asset Side
Balance Sheet – Asset Side As of September 30, December 31, (€000) Change % 2020 2019 ASSETS Intangible assets 105,621 107,282 (1,661) -1.5% Property, plant and equipment 24,679 25,512 (833) -3.3% Associates measured with equity method 1,860 1,786 74 4.1% Non-current financial assets at fair value 4
Slide 34: Balance Sheet – Liability Side
Balance Sheet – Liability Side As of September 30, December 31, (€000) Change % 2020 2019 LIABILITIES AND SHAREHOLDERS' EQUITY Total equity attributable to the shareholders of the Issuer 124,945 112,571 12,374 11.0% Minority interest 2,198 1,627 571 35.1% Total shareholders' equity 127,143 114,198 1
Slide 35: Net Financial Position
Net Financial Position As of September 30, December 31, (€000) Change % 2020 2019 A. Cash and cash equivalents 103,179 34,654 68,525 197.7% B. Other cash equivalents - - - N/A C. Financial assets held to maturity or for trading 1,698 2,184 (486) -22.3% D. Liquidity (A) + (B) + (C) 104,877 36,838 68,
Slide 36: Declaration of the manager responsible for preparing the Company’s financial reports
Declaration of the manager responsible for preparing the Company’s financial reports Declaration Pursuant to Art. 154/bis, Paragraph 2 – Part IV, Title III, Chapter II, Section V-bis, of Italian Legislative Decree No. 58 of 24 February 1998: “Consolidation Act on Financial Brokerage Pursuant to Arti