Dovalue S.p.a. · MIL:DOV
Dovalue — 9M 2021 Earnings Presentation
28 slides from Dovalue's earnings presentation, Nov 5, 2021
Slide 1: 9M 2021 results
9M 2021 results November 5th, 2021 9M 2021 results 1
Slide 2: Business Update
Business Update Andrea Mangoni, CEO 9M 2021 results 2
Slide 3: Business highlights
Business highlights Inflows in 2021 YTD demonstrate strong progress vs FY 2021 targets €14.0 billion 1 ✓ Approx. €2.7bn of forward flows (vs €2.0bn target) GBV secured ✓ Approx. €5.6bn of new mandates (vs €7.0-9.0bn target), reaching €11.3bn with Project Frontier in 2021 YTD Project Frontier landmar
Slide 4: Inflows
Inflows Approx. €14.0bn of inflows secured in 2021 YTD (including Project Frontier) Inflows details Inflows from existing clients (€bn) Existing New Inflows Total clients Clients Inflows secured in 2020 €2.8bn 2.7 A - €2.8bn (onboarded in 9M 2021) (100% Greece) 2.0 Inflows secured in 2020 €0.6bn B -
Slide 5: Project Frontier
Project Frontier A landmark c. €5.7bn securitisation by NBG, doValue in consortium with Bain Capital and Fortress €32 billion2 doValue GBV in Greece #1 servicer in the Country Transaction structure Comments ▪ Landmark securitisation by National Bank of Greece - First securitisation (under HAPS) by N
Slide 6: Project Mexico
Project Mexico Project Mexico demonstrates ability to manage complex transactions and to offer structured solutions to strategic clients Transaction structure Comments Before After securitisation securitisation1,2 ▪ May-21: Eurobank started securitization process for Mexico portfolio - Mexico portfo
Slide 7: BidX1
BidX1 Following the investment in QueroQuitar, BidX1 is an additional step in doValue diversification and growth strategy Company overview Transaction structure ▪ Leading Pan European prop-tech company ▪ Acquisition of a ≈ 15% stake - Online auctions ▪ Subscription of €10m capital increase 140,000 r
Slide 8: Regulatory environment
Regulatory environment Full normalisation of the regulatory environment in most jurisdictions Country Moratoria1 Foreclosures2 Court activity in Italy6 6,405 Italy ▪ Ending in Dec-21 ≈ ▪ Limitations3 lifted in Jun-21 ✓ Spain ▪ Ended Mar-21 ✓ ▪ No limitations3,4 ✓ 3,716 Greece ▪ Ended in Mar-21 ✓ ▪ N
Slide 9: Collections
Collections Spain collections already ahead of pre-COVID levels, Italy collections close to reaching pre-COVID levels (Q3 2021 higher vs Q3 2019) Italy1 cumulated collections to September (€bn) 1.2 1.2 0.9 €1.2bn of collections in 9M 2021 +27% (9M 2021 vs 9M 2020) // +36% (Q3 2021 vs Q3 2020) -5% (9
Slide 10: MSCI ESG Ratings
MSCI ESG Ratings doValue upgraded to AA (from A) by MSCI ESG Ratings in October 2021 Overview MSCI ESG Ratings history on doValue ▪ MSCI ESG Ratings recently upgraded doValue from A to AA 7 - MSCI ESG Ratings measures a company’s resilience to long-term ESG risks AAA 6 ▪ MSCI ESG Ratings upgrade key
Slide 11: Financial Review
Financial Review Manuela Franchi, CFO 9M 2021 results 11
Slide 12: Financial highlights
Financial highlights Metrics 9M 2020 9M 2021 Delta Comments GBV (EoP) €159.1bn €150.3bn -6% ▪ New mandates partially compensating collections, write offs and disposals ▪ Trend in collections confirm post-COVID normalisation ▪ Growing collections across all regions in Q3 2021 Collections €2.8bn €4.0b
Slide 13: Gross book value
Gross book value GBV growth of 1.6% considering mandates won and yet to be onboarded Gross book value (€bn) Comments 4.7 ▪ Inflows from existing clients at €2.7bn - Above yearly target of €2.0bn 2.7 10.0 160.3 ▪ Mandates from new clients onboarded in 9M 2021 of €4.7bn ( 4.0 ) - Including onboarding
Slide 14: Gross book value
Gross book value A highly diversified business across countries, security type, clients and business GBV by region (Sep-21) GBV by security (Sep-21) Cyprus Portugal 4% 1% Unsecured ▪ Significant country diversification Greece 26% - Focus on most attractive markets in Europe 17% ▪ High quality Gross
Slide 15: Gross revenues
Gross revenues Gross revenues growth at +37%, driven by improved collection rates and full contribution of doValue Greece in 9M 2021 Gross revenues (€m) Comments Outsourcing fees Outsourcing fees €34m (12% of €47m (12% of ▪ Gross Revenues growth at +37% Gross Revenues) Gross Revenues) - Larger conso
Slide 16: Operating expenses
Operating expenses Growth in operating expenses lower than growth in Gross Revenues driving margin expansion Operating expenses1 (€m) Comments EBITDA margin1 EBITDA margin1 at 25% at 30% ▪ Growth in operating expenses by +25% - Larger consolidation perimeter in 9M 2021 vs 9M 2020 * Full contribution
Slide 17: Performance by region
Performance by region Strong performance in the Hellenic Region continues while Italy and Iberia in line with expectations HELLENIC ITALY IBERIA REGION €1.2bn €1.9bn €1.0bn Collections €4.0bn (29% of total) (47% of total) (24% of total) Collections LTM / GBV 4.0% 2.2% 5.8% 11.6% €128m €123m €134m Gr
Slide 18: Collection rates
Collection rates Improving collection rates across all regions towards pre-COVID levels Collections LTM / Gross book value (%) 12% 12% 11.6% 10% 10% 9.5% 9.4% 8.4% 6.0% 6.0% 5.8% Historically (2017-2018) 5.0% 5.0% 5.1% at 2.4% 4.2% 4.1% 4.2% 4.0% 3.9% 3.6% 3.5% 3.7% 3.3% 3.1% 2.4% 2.4% 2.1% 2.1% 2.2
Slide 19: Cash flow
Cash flow Increase in Financial Leverage in Q3 2021 mainly driven by one-off items Net debt bridge (€m) 5 20 432 411 24 33 3 34 6 21 13 ( 21 ) ( 116 ) Net debt Reported Capex Delta NWC Delta other Taxes Financial Financial assets Tax Claim Share Dividends Dividends Net debt (30-Dec-2020) EBITDA asse
Slide 20: Net debt
Net debt All bond debt structure achieved in Q3 2021 with material improvement in cash flow generation going forward (entirely bullet profile) Net debt breakdown (€m) Comments ▪ All bond debt structure achieved in Q3 2021 2.6x 2.6x Net debt / EBITDA Net debt / EBITDA - €265m issued in Aug-20 LTM pro
Slide 21: Financial Guidance
Financial Guidance Andrea Mangoni, CEO 9M 2021 results 21
Slide 22: Guidance for FY 2021
Guidance 1 for FY 2021 Expected EBITDA in line with sell side consensus, reduction in Financial Leverage towards 2.0x, attractive dividend FY 2021 Comments Acceleration in collections due to customary seasonality Gross Revenues €565-575m (compounded by post-COVID recovery) and recognition of indemni
Slide 23: Appendix
Appendix 9M 2021 results 23
Slide 24: Income statement
Income statement Condensed Income Statement 9/30/2021 9/30/2020 RESTATED Change € Change % Servicing Revenues: 355,806 256,791 99,015 39% o/w: NPE revenues 296,968 211,410 85,558 40% o/w: REO revenues 58,838 45,381 13,457 30% Co-investment revenues 4,186 372 3,814 n.s. Ancillary and other revenues 2
Slide 25: Balance sheet
Balance sheet Condensed Balance Sheet 9/30/2021 12/31/2020 RESTATED Change € Change % Cash and liquid securities 138,070 132,486 5,584 4% Financial assets 49,344 70,859 (21,515) (30)% Property, plant and equipment 28,050 36,176 (8,126) (22)% Intangible assets 528,012 564,136 (36,124) (6)% Tax assets
Slide 26: Cash flow
Cash flow Cash flow 9/30/2021 9/30/2020 RESTATED EBITDA 115,901 69,635 Capex (12,648) (13,653) EBITDA-Capex 103,253 55,982 as % of EBITDA 89% 80% Adjustment for accrual on share-based incentive system payments 1,547 1,847 Changes in NWC (Net Working Capital) (21,002) 29,093 Changes in other assets/l
Slide 27: KPIs
KPIs KPIs 9/30/2021 9/30/2020 RESTATED 12/31/2020 RESTATED Gross Book Value (EoP) - Group¹⁾ 150,287,410 159,142,312 157,686,703 Gross Book Value (EoP) - Italy 75,392,249 76,087,611 78,435,631 Collections of the period - Italy 1,176,497 924,991 1,386,817 LTM Collections - Italy 1,638,323 1,582,769 1,
Slide 28: Disclaimer
Disclaimer This disclaimer applies to all documents and information provided herein and the verbal or written comments of any person presenting them. This presentation and any materials distributed in connection herewith taken together with any such verbal or written comments and the contents thereo