Moltiply Group S.p.a. · MIL:MOL
Moltiply — Gruppo MutuiOnline — Q3 2022 Earnings Presentation
45 slides from Moltiply's earnings presentation, Nov 15, 2022
Slide 1: Third Quarter 2022 Results
Third Quarter 2022 Results November 15th, 2022
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 Business Update 3 M&A Update 4 Historical Performance 5 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 aggregator Strong number two Focus on marketing activities, Commission on new policy sales for insurance, personal player in insurance mostly TV and Internet. Relies plus (lower) renewal fees from
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* 2,329 FTE Group structure as of September 30th, 2022 * 2021 average 8
Slide 9: Broking Division structure
Broking Division structure Group structure as of September 30th, 2022 9
Slide 10: BPO Division structure
BPO Division structure Group structure as of September 30th, 2022 10
Slide 11: Agenda
Agenda Business Description 1 Share Information 2 Business Update 3 M&A Update 4 Historical Performance 5 4 11
Slide 12: 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 13: Shareholding Structure
Shareholding Structure Shareholding structure as of November 11th, 2022* Treasury shares 6.12% Alma Ventures** 32.10% Free Float 39.97% 21.81% Investmentaktiengesellschaft für langfristige Investoren TGV * Share ownership as registered in last Shareholders’ meetings and as communicated to the compan
Slide 14: Share Performance since IPO
Share Performance since IPO 3,000 85.0 80.0 KEY STOCK DATA as of Nov. 11th, 2022 2,750 75.0 2,500 Number of Shares 40,000,000 70.0 Treasury Shares 2,449,748 65.0 2,250 Outstanding Shares 37,550,252 60.0 Price per Share € 27.30 2,000 Market Capitalisation € 1,025 M 55.0 1,750 50.0 Since November 2018
Slide 15: Agenda
Agenda Business Description 1 Share Information 2 Business Update 3 M&A Update 4 Historical Performance 5 4 15
Slide 16: Q3 highlights
Q3 highlights Broking Division BPO Division Revenues EBIT (€m) (€m) 80 71.4 30 Y-o-Y 69.4 -2.9% 60 46% 43% 20 18.1 Y-o-Y -18.4% 14.8 40 67% 10 62% 20 54% 57% 33% 38% 0 0 Q3 2021 Q3 2022 Q3 2021 Q3 2022 EBIT margin 25.3% 21.3% Includes € 1.8m of EBITDA one-off costs for Net Income (€m) financial and
Slide 17: 9M highlights
9M highlights Broking Division BPO Division Revenues EBIT (€m) (€m) 230.2 80 240 Y-o-Y 226.4 -1.7% 60 49.7 Y-o-Y 51.2 43% 43% +2.9% 160 40 65% 59% 80 57% 57% 20 35% 41% 0 0 9M 2021 9M 2022 9M 2021 9M 2022 EBIT margin 21.6% 22.6% EBITDA Net Income (€m) (€m) 80 80 67.5 Y-o-Y 65.9 -2.4% 60 60 54% 55% Y
Slide 18: Evolution of the Italian residential mortgage market
Evolution of the Italian residential mortgage market • In Q3 2022, the contraction of the residential mortgage market continued, as a result of collapsing remortgage volumes and a moderate contraction of purchase mortgage volumes, also because of the absence from the market of subsidized mortgages f
Slide 19: Broking Division – Q3 Key Financials
Broking Division – Q3 Key Financials EBITDA Revenues (€m) (€m) 20 50 13.6 Y-o-Y -19.4% 11.0 10 40 32.6 Y-o-Y 29.9 0 -8.5% Q3 2021 Q3 2022 30 EBITDA margin 41.7% 36.7% 20 EBIT (€m) 10 20 12.2 Y-o-Y 0 10 -24.8% 9.2 Q3 2021 Q3 2022 0 Q3 2021 Q3 2022 EBIT margin 37.3% 30.7% 19
Slide 20: Broking Division – 9M Key Financials
Broking Division – 9M Key Financials EBITDA Revenues (€m) (€m) 40 36.7 Y-o-Y 36.0 -2.1% 150 20 98.0 Y-o-Y 100 -0.9% 97.1 0 9M 2021 9M 2022 EBITDA margin 37.5% 37.0% 50 EBIT (€m) 40 32.4 Y-o-Y 30.4 -6.0% 0 9M 2021 9M 2022 20 0 9M 2021 9M 2022 EBIT margin 33.1% 31.4% 20
Slide 21: Broking Division – Performance and outlook
Broking Division – Performance and outlook • In Q3 2022, the results of the Broking Division are down Y-o-Y due to the significant drop of Mortgage Broking revenues, which the growth of all the other business lines is unable to offset. • For the rest of the financial year, it is reasonable to assume
Slide 22: BPO Division – Q3 Key Financials
BPO Division – Q3 Key Financials EBITDA Revenues (€m) (€m) 20 50 9.3 Y-o-Y 8.7 10 -6.4% 38.8 Y-o-Y 39.5 40 +1.8% 0 30 Q3 2021 Q3 2022 EBITDA margin 23.9% 21.9% 20 EBIT (€m) 10 20 0 Q3 2021 Q3 2022 10 5.9 Y-o-Y -5.1% 5.6 0 Q3 2021 Q3 2022 EBIT margin 15.3% 14.2% 22
Slide 23: BPO Division – 9M Key Financials
BPO Division – 9M Key Financials EBITDA Revenues (€m) (€m) 40 30.8 Y-o-Y 29.9 150 -2.7% 132.3 Y-o-Y -2.2% 129.3 20 100 0 9M 2021 9M 2022 EBITDA margin 23.3% 23.2% 50 EBIT (€m) 40 0 Y-o-Y 20.7 9M 2021 9M 2022 20 17.4 +19.4% 0 9M 2021 9M 2022 EBIT margin 13.1% 16.0% 23
Slide 24: BPO Division – Performance and outlook
BPO Division – Performance and outlook • Q3 2022 shows trends consistent with the previous months of the year, with substantial stability in turnover and EBITDA, especially net of one-off effects related to acquisitions. • At the level of the business lines, the reduction in turnover of Mortgage BPO
Slide 25: Agenda
Agenda Business Description 1 Share Information 2 Business Update 3 M&A Update 4 Historical Performance 5 4 25
Slide 26: Major announced acquisitions
Major announced acquisitions Description Timing Price Financials DISTRIBUTION • Leading • Signed on 28 • Euro 150 million • Expected revenues Rastreator & insurance August 2022 plus net cash of 62 million and LeLynx aggregators in • Closing expected adjustment with normalized Ebitda Spain, France in
Slide 27: Focus on Trebi
Focus on Trebi COMPANY DESCRIPTION BUSINESS LINES • Trebi is a vendor of mission-critical software designed for Leasing NPLs Other Loan Products the specialty lending market and is the Italian Financial and NPLs and UTPs Consumer factoring undisputed leader in the leasing market. operational l
Slide 28: Joint management of Agenzia Italia and Trebi
Joint management of Agenzia Italia and Trebi - Integrated offer of BPO and software services, in line with the BPO Division’s strategy of offering “Complete Service Platforms”. - Joint tailored development of new features and evolutions in the leasing service offering, including integration of propr
Slide 29: Agenda
Agenda Business Description 1 Share Information 2 Business Update 3 M&A Update 4 Historical Performance 5 4 29
Slide 30: Major milestones
Major milestones START-UP GROWTH RESTRUCTURING NEW GROWTH Revenues (€m) 313.5 259.4 Collapse of 219.9 Italian mortgage 185.1 market 152.8 138.1 120.7 71.8 68.3 46.4 47.9 53.4 51.0 37.7 38.5 13.2 21.8 0.1 1.0 2.7 4.5 7.8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 31: Revenue trends by Division
Revenue trends by Division Group Revenues (€m) Collapse of the Italian Mortgage Market 350 313.5 300 259.4 250 43% 58% 219.9 200 185.1 43% 40% 39% 152.8 150 61% 138.1 43% 45% 120.7 44% 100 44% 71.8 47% 57% 68.3 53.4 57% 46.4 47.9 51.0 61% 50 37.7 58% 38.5 37% 57% 66% 61% 40% 56% 56% 21.8 60% 45% 53%
Slide 32: Revenue Breakdown by Business Line
Revenue Breakdown by Business Line 180 Broking Division Revenues (€m) 150 134.2 1% 8% 120 Other Revenues 111.1 Telco & Energy Comparison* 4% 26% E-Commerce Price Comparison 86.8 Insurance Broking 90 31% 79.1 3% Consumer Loan Broking 61% 45% 3% 18% Mortgage Broking 67.2 27% 61.0 24% 3% 60 57.2 18% 3%
Slide 33: Revenue Breakdown by Business Line
Revenue Breakdown by Business Line BPO Division Revenues 179.2 180 1% (€m) 20% 148.3 150 Other revenues 133.1 6% BPO Leasing/Rental 22% Investment Services BPO 120 Insurance BPO 24% 17% 106.0 6% Loans BPO 5% Real Estate Services BPO* 21% 7% 90 85.6 4% Mortgage BPO 17% 14% 61% 77.1 10% 8% 45% 8% 17%
Slide 34: EBITDA by Division
EBITDA by Division EBITDA EBITDA margin (€m) (%) 150 50% 40.5% 120 40% 37.8% 35.0% 92.6 30% 90 29.1% 76.6 29.5% 29.5% 64.0 25.3% 55% 20% 23.3% 60 21.3% 59% 47% 10% 30 53% 45% 41% 0% 0 2019 2020 2021 2019 2020 2021 BPO Division Broking Division Broking Division BPO Division Group 34
Slide 35: Operating Income by Division
Operating Income by Division EBIT (€m)80 Collapse of the 69.0 Italian Mortgage 63.1 Market 60 + 50.8 46.1 Launch of 39.7 64% 40 Segugio.it 35.2 66% 30.9 32.0 52% 51% 21.9 21.5 22.0 46% 17.6 47% 20 14.5 57% 77% 8.5 78% 84% 5.6 36% 48% 36% 77% 93% 3.6 53% 54% 49% 34% 67% 32% 64% 43% 0 33% 23% 22% 7% 1
Slide 36: Net Income
Net Income Net income (€m) 150 130.7* 120 Tax benefit from the 90 revaluations 85.1 60 47.5** 40.6 34.4 23.5 24.8 27.5 Recalculation of 14.8 14.4 15.3 20.9 30 29.7 DTA due to 9.7 9.9 45.6 regulatory changes 5.2 3.6 3.8 17.8 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 37: Dividend Payout
Dividend Payout Earnings per share, consolidated (€) 4.00 3.42* 3.50 3.00 Tax benefit 2.50 from the revaluations 2.23 2.00 1.50 1.14** 1.07 0.89 1.00 0.59 0.69 Recalculation of 0.56 0.58 0.71 DTA due to 0.38 0.38 0.41 1.19 0.50 0.25 0.24 regulatory changes 0.09 0.09 0.43 0.00 2007 2008 2009 2010 201
Slide 38: Appendix
beh Appendix
Slide 39: Quarterly Profit & Loss
Quarterly Profit & Loss (€000) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Rev enues 69,383 79,125 77,865 83,231 71,444 Other income 1,889 2,062 1,417 1,704 971 Capitalization of internal costs 1,167 1,589 1,153 1,915 804 Serv ices costs (29,521) (30,782) (32,405) (34,087) (27,534) Personnel costs (20,5
Slide 40: Q3 Profit & Loss
Q3 Profit & Loss (€000) Q3 2022 Q3 2021 % Var. Rev enues 69,383 71,444 -2.9% Other income 1,889 971 94.5% Capitalization of internal costs 1,167 804 45.1% Serv ice costs (29,521) (27,534) 7.2% Personnel costs (20,517) (20,431) 0.4% Other operating costs (2,764) (2,383) 16.0% Depreciation and amortiz
Slide 41: 9M Profit & Loss
9M Profit & Loss (€000) 9M 2022 9M 2021 % Var. Rev enues 226,373 230,233 -1.7% Other income 5,368 3,378 58.9% Capitalization of internal costs 3,909 2,938 33.0% Serv ice costs (92,708) (96,548) -4.0% Personnel costs (68,835) (65,381) 5.3% Other operating costs (8,206) (7,109) 15.4% Depreciation and
Slide 42: Balance Sheet – Asset Side
Balance Sheet – Asset Side As of September 30, December 31, (€000) Change % 2022 2021 ASSETS I ntangible assets 215,668 202,758 12,910 6.4% Property, plant and equipment 25,175 24,669 506 2.1% Participation measured w ith equity method 1,079 1,058 21 2.0% Financial assets at fair v alue 92,419 40,41
Slide 43: Balance Sheet – Liability Side
Balance Sheet – Liability Side As of September 30, December 31, (€000) Change % 2022 2021 LIABILITIES AND SHAREHOLDERS' EQUITY Total equity attributable to the shareholders of the Issuer 258,546 264,399 (5,853) -2.2% Minority interest 1,889 4,671 (2,782) -59.6% Total shareholders' equity 260,435 269
Slide 44: Net Financial Position
Net Financial Position As of September 30, December 31, (€000) Change % 2022 2021 A. Cash and current bank accounts 218,843 165,857 52,986 31.9% B. Cash equiv alents - - - N/A C. Other current financial assets 1,849 1,510 339 22.5% D. Liquidity (A) + (B) + (C) 220,692 167,367 53,325 31.9% E. Current
Slide 45: 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