Dovalue S.p.a. · MIL:DOV
Dovalue — Investor Presentation (May 2022)
96 slides from Dovalue's investor presentation, May 2022
Slide 1: Corporate presentation May 2022
This presentation contains an updated version of the slides presented during the Capital Markets Day (26-Jan-22) now reflecting the expiration of the Sareb contract in June 2022. The updated slides are clearly highlighted with a green colour banner. Corporate presentation May 2022 Leading the evolut
Slide 2: Track Record
Track Record 2 Corporate Presentation
Slide 3: A highly attractive business model
A highly attractive business model Independent & capital light servicing platform, fee-based business model, limited balance sheet deployment, focus on high value-added activities Business Model Key Strengths No acquisition of credit portfolios ✓ • Banks Disposals / Securitisations Investors 1 Capit
Slide 4: A track record of profitable growth
A track record of profitable growth Substantial growth across all key metrics since IPO Gross Book Value (€bn) Gross Revenues (€m) EBITDA ex NRIs (€m) +1.8x +2.8x +3.1x 149 35% EBITDA margin 572 201 81 31% EBITDA margin 206 64 Dec-16 Dec-21 2016 2021 2016 2021 4 Corporate Presentation
Slide 5: A track record of diversification
A track record of diversification Achieved substantial diversification in terms of geographies and clients, ability to operate across the entire credit spectrum At IPO Today #1 position in Southern Europe Iberia + Gross Italy Geographies One Country 20% market share1 Hellenic Region Revenues 2021 31
Slide 6: A track record of successful acquisitions and integration
A track record of successful acquisitions and integration Proven track record of Core Acquisitions and of investments in Digital Platforms Core Acquisitions Investments in Digital Platforms Joint Venture with Debitos €368m investment (85% stake) Innovative platform for single names & portfolio sales
Slide 7: A track record of cash flow generation and operational resilience
A track record of cash flow generation and operational resilience Strong and consistent cash flow generation, deleveraging post M&A and operational resilience, only marginally impacted by COVID Cash Flow Leverage Collection Rate €426m Free Cash BB / Stable COVID COVID Flow Generation Credit Rating i
Slide 8: Key clients and maturity of agreements
Key clients and maturity of agreements 2019 2020 2021 2022 2023 2024 2025 2026 2027 Run-off Dec-21 Key considerations GBV ▪ Current contract maturing in Jun-22 €23bn ▪ No renewal post Jun-22 ▪ Stock managed until run-off FORWARD FLOW AGREEMENT €2bn ▪ Forward flows agreement expires in 2025 €6bn ▪ NP
Slide 9: Q1 2022 results
Q1 2022 results 9 Corporate Presentation
Slide 10: A positive start of the year 2022
A positive start of the year 2022 • Approx. €4.9bn of new mandates already secured in 2022 YTD (€1.2bn in Italy and €3.7bn in the Hellenic Region) • Forward flows in Q1 2022 totalling €0.8bn (roughly equally split between Spain, Greece and Italy) Strong intake • With a total of €5.6bn of new GBV sec
Slide 11: Strong intake of new GBV in Q1 2022
Strong intake of new GBV in Q1 2022 Inflows overview 2017-2022 YTD (€bn) Key mandates secured in the last 6 months Project Frontier Project Italy Business Plan 14.4 14.7 Target Mexico GACS I & II 13.5 of €13-14bn Greece, €5.7bn 13.0 NBG, Bain, Fortress Greece Italy 11.8 2021 €3.2bn €1.2bn Eurobank I
Slide 12: Financial highlights (Q1 2022)
Financial highlights (Q1 2022) Item Q1 2021 Q1 2022 Delta Comments broadly GBV €161bn €153bn • Approx. €5.5bn already won but yet to be onboarded will bring stable to €158bn pro-forma GBV • GBV dynamic driven by acceleration of collections post COVID Collections €1.3bn €1.3bn +0.1% and by one-off di
Slide 13: Gross Book Value (Q1 2022)
Gross Book Value (Q1 2022) Gross Book Value (€bn) 158.1 5.5 152.6 5.7 ( 1.3 ) 149.5 0.8 ( 0.8 ) ( 1.3 ) GBV Inflows from New mandates Collections / Net write-offs Disposals GBV Mandates secured GBV (Dec-21) existing clients Sales (Mar-22) (not onboarded as of (Mar-22, PF) Mar-22) • Inflows from exis
Slide 14: Gross Book Value and Gross Revenues (Q1 2022, 1 of 2)
Gross Book Value and Gross Revenues (Q1 2022, 1 of 2) GBV Gross Revenues Comments by region by region • Well diversified GBV by region and client type Iberia Iberia 27% 27% Italy • Higher share of Revenues vs GBV from Hellenic 33% Region and Iberia reflects difference in average €153bn Italy €131m (
Slide 15: Gross Book Value and Gross Revenues (Q1 2022, 2 of 2)
Gross Book Value and Gross Revenues (Q1 2022, 2 of 2) GBV Gross Revenues Comments by product by product UTPs Early UTPs Early • Well diversified GBV by product and security 6% Arrears 9% Arrears REOs 2% 1% 13% • Higher share of Revenues from non-NPL REOs €153bn 16% €117m1 products reflects higher fe
Slide 16: Gross Revenues (Q1 2022)
Gross Revenues (Q1 2022) Gross Revenues (€m) Comments €15m €15m • Gross Revenues growth at +3.6% Outsourcing Fees Outsourcing Fees - Net of €4m Relais capital gain in Q1 2021, growth of +7.0% (11.9% of Gross (11.5% of Gross - Strong growth in Ancillary Revenues (+€5.0m / +58%) Revenues) Revenues) •
Slide 17: Operating Expenses (Q1 2022)
Operating Expenses (Q1 2022) Operating Expenses ex NRIs (€m) Comments • Broadly stable OpEx as a % of Gross Revenues at 59% (from 58%) 58% of 59% of - Broadly stable EBITDA margin at 30.0% (from 30.6%) Gross Revenues1 Gross Revenues • Growth in OpEx in absolute terms by +5% - Mainly driven by increa
Slide 18: EBITDA (Q1 2022)
EBITDA (Q1 2022) EBITDA ex NRIs (€m) Comments • EBITDA ex NRIs growth at +1.6% 30.6% 30.0% EBITDA ex NRIs EBITDA ex NRIs - Excluding €4m Relais capital gain in Q1 2021 growth of +13.3% margin margin • More favourable mix vs Q1 2021 (contribution of Hellenic Region) - EBITDA ex NRIs margin in Helleni
Slide 19: Regional Performance (Q1 2022)
Regional Performance (Q1 2022) doValue Hellenic Group Italy Iberia Region €0.4bn €0.4bn €0.5bn Collections €1.3bn (30% of tot) (28% of tot) (42% of tot) Collection Rate 4.2% 2.4% 5.4% 6.6% €43m €53m €36m Gross Revenues €131m (33% of tot) (40% of tot) (27% of tot) €10m €28m €1m EBITDA ex NRIs €39m (2
Slide 20: Net Income (Q1 2022)
Net Income (Q1 2022) Attributable Net Income (€m) Comments • Net Income growth of +63% (or +35% ex NRIs) +63% +35% - Higher EBITDA (delta €0.7m) - Lower D&A (delta €2.7m) - Higher fair value change on financial assets (delta €1.8m) - Partially offset by higher taxes (delta €1.6m) 10 • Approx. €1.5m
Slide 21: Financial Structure (Q1 2022)
Financial Structure (Q1 2022) Net Debt (€m) Comments • Significant liquidity position with no maturities before 2025 2.6x 2.0x 2.0x Net Debt / Net Debt / Net Debt / - Approx. €162m cash position as of Mar-22 EBITDA PF EBITDA EBITDA • All bond debt structure achieved in Q3 2021 - €265m issued in Aug-
Slide 22: Maturity profile (Q1 2022)
Maturity profile (Q1 2022) Gross Debt (€m) Comments • No maturity before 2025 563 • Current gross debt mainly composed of two bonds outstanding - €265m bond maturing in 2025 with coupon of 5.00% - €300m bond maturing in 2026 with coupon of 3.375% • First maturity in August 2025 - Possibility to call
Slide 23: Business Plan Highlights
Business Plan Highlights 23 Corporate Presentation
Slide 24: Structural market tailwinds
Structural market tailwinds Several factors to support doValue reference market both in the short, medium and long term • Uptick in new NPEs formation expected from 2022 onwards Moratoria • Inflation and potential increase in interest rates to exacerbate distressed situations ending • Increase in St
Slide 25: Substantial formation of new NPEs expected
Substantial formation of new NPEs expected Approx. €200bn of new NPEs expected in Southern Europe in 2022-2024. Longer term, new NPEs at €50bn+ p.a. (1.0%+ default rate) New NPEs formation (€bn) New NPEs formation Bottom up estimate Top down simulation Italy Hellenic 46% Region 7% €197bn Unlikely Ib
Slide 26: A growing and attractive pipeline for 2022
A growing and attractive pipeline for 2022 Pipeline evolution (€bn) Comments 24.2 • Very active market in Italy and Hellenic Region c. 55% doValue market share • Pipeline consists of both outright portfolios and servicing platforms up for sale 17.1 Iberia 17% • Few transaction are relatively large (
Slide 27: Widening the reference market
Widening the reference market Innovation and extension of long term relationship with clients will enable a substantial increase of doValue reference market Reference markets Today Tomorrow doValue existing capabilities in NPLs, REOs, UTPs and Early Arrears Broaden the scope of the product offering,
Slide 28: doValue strategic evolution 2022-2024 … and beyond
doValue strategic evolution Strengthening strategic Pursuing Leading the and long term integration evolution of the Achieving partnership and cross credit servicing diversification with banks and fertilisation industry through and scale investors between investments in in a broadened geographies Tec
Slide 29: Strategic pillars of doValue 2024
Strategic pillars of doValue 2024 GROW ENHANCE TRANSFORM INNOVATE CARE 29 Corporate Presentation
Slide 30: Strategic pillars of doValue 2024: Grow
Strategic pillars of doValue 2024 Grow 1 Replenish GBV organically Track Record Business Plan ≈ €9bn ≈ €13-14bn expected average inflows new mandates per annum in 2022-2024 per annum (average 2019-2021) Including both forward flows agreements and mandates from new clients + On top of €10bn of mandat
Slide 31: Strategic pillars of doValue 2024: Enhance
Strategic pillars of doValue 2024 Enhance 2 Enhance product offering At IPO 2021 2024 NPL REO - UTP - Cross Leveraging Climb the Capitalise on fertilization on best credit client base to across practices value-chain sell more geographies, within the upwards products per Early Arrears - clients and d
Slide 32: Strategic pillars of doValue 2024: Transform
Strategic pillars of doValue 2024 Transform 3 Centralisation of Group Governance doTransformation Empower Regional Concept ≈ €55m total investment for Establish Back-office Hubs Global and Local Centralise IT Group Services Transformation (2022-2024) Optimise Cost Base Strategic Improve Client Servi
Slide 33: Strategic pillars of doValue 2024: Innovate
Strategic pillars of doValue 2024 Innovate 4 Innovation strategy developed internally • Joint venture between doValue and Debitos 2020 • Online NPL trading platform (Innovation Centre) and through M&A • Exclusive partnership for Italian and Greek NPLs (expanding into Spain) • Generated €6m of revenu
Slide 34: Strategic pillars of doValue 2024: Care
Strategic pillars of doValue 2024 Care 5 Best in class Servicer and ESG Ratings Act professionally, demonstrate ongoing operational excellence for responsibly and sensitively the benefit of all key stakeholders Servicer Ratings Rating Scope Clients Regulators Fitch (Special Servicer) Level 1 (Feb-22
Slide 35: Sustainability targets
Sustainability targets Sustainable Development Areas Selected targets for 2022 and 2023 Goals (United Nations) • ISO 37001 certification by 2022 • Training on Ethical Code and Privacy (75% participation by 2023) Operate • Training on Cyber Security (100% participation by 2022) responsibly • Client S
Slide 36: Transformation Plan
Transformation Plan 36 Corporate Presentation
Slide 37: Why doTransformation
Why doTransformation A history of acquisitions coupled with an evolving industry in need of innovation require a transformation plan Countries Products Functions The Challenge and the Opportunity Complexity to be organised and managed Risks to be controlled and mitigated x x = Upgrading quality of s
Slide 38: Achievements from previous business plan and next steps
Achievements from previous business plan and next steps Excellent client service and collection performance will lead to winning more business and retaining market leadership What has been done so far What’s next • Central corporate functions created serving all Maintain industry Superior 5 countrie
Slide 39: Grow Revenues
Slide updated to reflect expiration Grow Revenues of the Sareb contract Enhanced origination and business development effort to boost revenue growth What How Targets • Common business development team (“Group product experts”) - Support all regions and provide tailor made solutions to clients - Anti
Slide 40: Optimise Costs
Slide updated to reflect expiration Optimise Costs of the Sareb contract Commitment to continue optimising every cost line to support EBITDA margin also leveraging on new Group structure Operating costs1 (ex NRIs) From Holding structure to Group structure as % of Gross Revenues 35% EBITDA +300 bps c
Slide 41: People aligned to Group targets and ambitions
Slide updated to reflect expiration People aligned to Group targets and ambitions of the Sareb contract HR Increasing efficiency and productivity to optimise FTEs allocation and Revenue generation What Actions Datapoints Revenues / FTE (€k) • Same corporate applications across 5 countries New tools
Slide 42: Streamlining operations
Streamlining operations IT Eliminated 2 Back Offices (consolidating into Italy, Greece and Spain) and 10 Data Centres (preserving geographical diversification) Before After No Regional Hubs 3 Regional Hubs (in 3 countries) 5 Back Offices (across 5 countries) 3 Back Office Hubs (in 3 countries) 28 14
Slide 43: Creating Back Office Hubs
Creating Back Office Hubs IT Transforming back-office activities to achieve operational excellence and further exploit outsourcing Overview Key Actions Simplify the operating model and change how back offices Ops transformation (both local and group) will bring operate saving of 15% vs. current oper
Slide 44: Technology enabler of rationalisation and growth
Slide updated to reflect expiration Technology enabler of rationalisation and growth of the Sareb contract IT IT investments facilitate superior performance, higher security, data enhancement, simplification and Opex reduction Key drivers ONE doValue Group IT (Main KPIs) Application • Maximise bluep
Slide 45: Our digital journey has already begun, wish to join?
Our digital journey has already begun, wish to join? It started from Greece…now being rolled out to other countries too Advanced messaging system Digital Signatures eRequests eKYC SMS, email and From contract Submit inquiry and 100% virtual and Viber signing up to service requests remote process Mas
Slide 46: Efficiencies on procurement and office footprint
Efficiencies on procurement and office footprint RE & SG&A Centralised procurement function has already yielded savings for c. 3% of current operating cost base Real Estate Costs Global Procurement strategy (office footprint reduction) Rationalisation of 50% of footprint (2018-2024), with Defined pr
Slide 47: Key milestones of doTransformation
Key milestones of doTransformation 2022 will be the core year of doTransformation, setting the base for improved operations and better margins going forward Goals already met Targets to be achieved 2020 2021 2022 2023 2024 • Italian IT & Back office • AAM RE Platform across • Group IT centralised •
Slide 48: Financial Targets
Financial Targets 48 Corporate Presentation
Slide 49: Revenue growth supported by increased collection rates
Slide updated to reflect expiration Revenue growth supported by increased collection rates of the Sareb contract Revenues growth reflects growth in collection rates and more favourable GBV mix (despite stable GBV) Gross Revenues (€m) Key drivers • Stable GBV in aggregate (post Sareb) 4.0% 11% c. 12-
Slide 50: Cost base streamlined through doTransformation
Slide updated to reflect expiration Cost base streamlined through doTransformation of the Sareb contract doTransformation program will enable to grow EBITDA margin maximising operational leverage (c. 85-90% of OpEx fixed) Operating Expenses1 ex NRIs (€m) Key drivers • HR costs from 38% of Gross Reve
Slide 51: EBITDA growth driven by Hellenic Region performance
Slide updated to reflect expiration EBITDA growth driven by Hellenic Region performance of the Sareb contract Strong growth contribution by the Hellenic Region, combined with a stable Italian business and transformation of Iberia EBITDA ex NRIs (€m) Key drivers • Gross Revenues / FTE to increase by
Slide 52: Directional business plan profile by region
Slide updated to reflect expiration Directional business plan profile by region of the Sareb contract Better GBV vintage, improved collections and increased efficiencies support growth of Group Gross Revenues and EBITDA Gross Revenues (€m) EBITDA ex NRIs (€m) 800 300 700 250 600 200 500 400 150 300
Slide 53: Net Income expected evolution
Net Income expected evolution Substantial increase in recurring Net Income from 2021 to 2024 mainly related to EBITDA growth and declining D&A Attributable Net Income ex NRIs (€m) Key drivers +1.4x • Mostly related to amortisation of Altamira / doV. Greece PPA - €94m in 2021 (2021 -> 2024) D&A - App
Slide 54: Capex plan
Capex plan A €42m Capex plan in 2022 (in addition to €30m spent in 2021) will contribute to doValue operational excellence and leadership in the sector Capex evolution (€m) Capex considerations 4.0% 4% c. 5% c. 7% c. 3% c. 3% • The Capex plan is aimed at delivering savings equivalent to Benefit 42 8
Slide 55: Free Cash Flow generation to accelerate in 2023-2024
Free Cash Flow generation to accelerate in 2023-2024 Total expected Free Cash Flow generation > €300m in 2022-2024, with 2022 being a transition year due to Capex plan and other factors Free Cash Flow (€m) Key drivers of cash flow generation > €300m • Cash flow generation mainly impacted by Total Fr
Slide 56: M&A aimed at consolidation and broadening reference market
M&A aimed at consolidation and broadening reference market A two legged M&A strategy focussed on in-market consolidation and broadening the reference market In-market consolidation with revenue / cost Acquisition in adjacent areas broadening synergies reference market • Increase GBV • Increase scope
Slide 57: Financial policy
Financial policy Leverage target 1 - Maximum net leverage of 3.0x Net Debt / EBITDA - Target to remain between 2.0-3.0x in the medium term, as per Business Plan 2022-2024 target ✓ - Strong cash flow generation leads to clear and consistent deleveraging Dividend Policy 2 - Dividend Per Share of €0.50
Slide 58: Attractive shareholders' distribution policy
Attractive shareholders’ distribution policy Dividend Per Share (€) Total dividends to be paid > €200m related to Fiscal Years 2021-2024 6% 7% 9% 11% Dividend Dividend Dividend Dividend Yield Yield Yield Yield Current market capitalisation > 30% returned to shareholders Dividend Per Share to grow by
Slide 59: Appendix
Appendix 59 Corporate Presentation
Slide 60: Appendix - Focus on Italy
Appendix - Focus on Italy 60 Corporate Presentation
Slide 61: Key achievements in Italy since IPO
Key achievements in Italy since IPO Maintained # 1 position, diversifying client and product offering, mitigating profitability pressure due to shift from banks to investors • Broad client diversification achieved 1 Clients • Added more than 20 clients in Italy through active origination effort • 75
Slide 62: Servicers market in Italy
Servicers market in Italy Most servicers in Italy either active as investors (with limited third party client growth) or dependant on few key clients Top 10 credit servicers by GBV (€bn) Fee environment Share 20% doValue 75 * Historical trend at doValue (2017-2021) Outlook 11% Cerved 41 * Banks Decr
Slide 63: Expected uptick in formation of new NPEs in Italy
Expected uptick in formation of new NPEs in Italy Expectation of approximately €90bn of new NPEs in Italy in 2022-2024 New NPEs formation (€bn) New NPEs formation Bottom up estimate Top down simulation 90 Unlikely ≈ €60bn given Scenario ≈ 3.0% of new NPEs strength of 16 A default rate per annum macr
Slide 64: Revenue buckets in Italy
Revenue buckets in Italy Business plan targets driven by further expansion of product offering and enhanced profitability Current Revenues Ambition Product offering development Comment (2021) for 2024 status • Maintain leadership, in particular on GACS ✓✓✓ - > 75% share in 2020-2021 NPLs €143m (new
Slide 65: Efesto UTP Fund successful case study
Efesto UTP Fund successful case study An innovative “open platform” approach to the management of UTPs Rationale & Capabilities Efesto UTP fund structure Rationale • Re-launch of SMEs and RE assets with turnaround potential Efesto UTP Fund • Achieve UTP deconsolidation targets of banks • Possibility
Slide 66: Reducing costs and optimising operations
Reducing costs and optimising operations Significant milestones have been achieved and additional projects are underway Projects in 2019-2021 Operating costs in Italy Projects in 2022-2024 • Merger of NPL platforms completed • Process standardisation & triage model - Improved systems and higher effi
Slide 67: Historical performance and targets
Historical performance and targets Italian business now stabilised after structural shift in client mix. Profitability to be enhanced by doTransformation program Gross Revenues and EBITDA (€m) Key drivers of historical performance €77bn €82bn €79bn €78bn €76bn c. €81bn • Organic decrease in UniCredi
Slide 68: Appendix - Focus on the Hellenic Region
Appendix - Focus on the Hellenic Region 68 Corporate Presentation
Slide 69: Key achievements in the Hellenic Region
Key achievements in the Hellenic Region Confirmed # 1 position as independent servicer in the Hellenic market through Project Frontier and Project Mexico • Successful carve-out of Eurobank platform to build a leading independent player 1 Clients - Leadership in Greek HAPS securitisations (€6bn Proje
Slide 70: Servicers market in the Hellenic Region
Servicers market in the Hellenic Region Relatively concentrated market structure with top 4 players representing 80% of the market Top 10 credit servicers by GBV (€bn) Fee environment Share Historical trend at doValue Greece (2020-2021) Outlook 29% doValue 38 * 22% CEPAL 29 Banks Stable Base fee 21%
Slide 71: Expected uptick in formation of new NPEs in the Hellenic Region
Expected uptick in formation of new NPEs in the Hellenic Region Expectation of approximately €14bn of new NPEs in the Hellenic Region in 2022-2024 (on top of current excess NPEs of €10bn+) New NPEs formation (€bn) New NPEs formation Bottom up estimate Top down simulation ≈ €14bn of new NPEs expected
Slide 72: Revenue buckets in the Hellenic Region
Revenue buckets in the Hellenic Region Further boost leadership position through acquisition of key mandates, both primary and secondary Current Revenues Ambition Product offering development Comment (2021) for 2024 status • Maintain market leadership (in particular HAPS) and enhance NPLs €140m ✓✓✓
Slide 73: Reducing costs and optimising operations
Reducing costs and optimising operations Journey to higher efficiency levels to reduce cost base in the medium term and protect margins Change Grow Enhance post carve-out operating model by focusing on increasing Onboard new portfolios, while establishing a blueprint process efficiency Retail initia
Slide 74: Historical performance and targets
Historical performance and targets Attractive fee levels driving above average profitability, increased productivity to support profitability going forward Gross Revenues and EBITDA (€m) Key drivers of business plan performance €34bn €34bn €32bn c. €40bn • Strong profitability underpinned by attract
Slide 75: Appendix - Focus on Iberia
Appendix - Focus on Iberia 75 Corporate Presentation
Slide 76: Key achievements in Iberia since Altamira acquisition
Key achievements in Iberia since Altamira acquisition Maintained # 1 position, mitigated profitability pressure and acted as REOs best practices provider to the rest of doValue Group • Ongoing diversification of client base lowering reliance on Santander 1 Clients - Portfolio of clients currently in
Slide 77: Servicers market in Iberia
Servicers market in Iberia Relatively fragmented market structure in Iberia could lead to a consolidation wave post Sareb Top 10 credit servicers by GBV (€bn) Fee environment Share 17% doValue Historical trend at Altamira Spain (2017-2021) Outlook (Altamira) 42 ** Aliseda + Anticipa 13% (Blackstone)
Slide 78: Expected uptick in formation of new NPEs in Iberia
Expected uptick in formation of new NPEs in Iberia Expectation of approximately €90bn of new NPEs in Iberia in 2022-2024 New NPEs formation (€bn) New NPEs formation Bottom up estimate Top down simulation 92 Unlikely ≈ €60-70bn given Scenario ≈ 2.0-2.5% of new NPEs strength of 26 A default rate per a
Slide 79: Revenue buckets in Iberia
Revenue buckets in Iberia Key objective for 2024 is to transform the operating model and develop new revenue streams Current Revenues Ambition Product offering development Comment (2021) for 2024 status • Further develop model into more granular and unsecured NPEs NPLs €95m ✓✓ ✓✓✓ • Increase collect
Slide 80: Transformation to increase productivity and improve performance
Transformation to increase productivity and improve performance 4 pillars for this transformation program under one single agenda – Lego & doTransformation Process E2E: NPL, Property & Asset Golden source for data 1 3 • • Process Transformation, Real Estate Development and Data • Deploy new asset ma
Slide 81: Sareb will accelerate transformation in Iberia
Sareb will accelerate transformation in Iberia Process overview Considerations • Sareb decided not to reappoint doValue Sareb RfP process - Decision made on February 24th, 2022 started - All current four servicers (including doValue) not reappointed (Jul-21) Capital - Two “new” servicers appointed (
Slide 82: Historical performance and targets
Slide updated to reflect expiration Historical performance and targets of the Sareb contract Key focus in improving profitability with new generation contracts Gross Revenues and EBITDA (€m) Key drivers of business plan performance €46bn €45bn €45bn €42bn c. €21bn • New generation contracts with no
Slide 83: Appendix - Other material
Appendix - Other material 83 Corporate Presentation
Slide 84: Shareholders' structure
Shareholders’ structure Top Shareholders Comments • High quality and relatively stable shareholder base No. Institution Type Country Stake • Fortress is founding shareholder 1 Fortress Private Equity USA c. 28% - Active also in NPL investing - Historical client of doValue. In Dec-21, increased its s
Slide 85: Board of Directors
Board of Directors Board of Directors Comments No. Name Role Type • High quality and relatively stable Board of Directors - Composed of 50-50% Independent / Non-Independent members 1 Giovanni Castellaneta Chairman Independent - Composed of 40-60% Women / Men members - Number of members increased (by
Slide 86: Corporate Structure
Corporate Structure Overview Recent Events • Dec-20: merger of doValue Greece Holding by doValue Greece • Nov-20: merger of doSolutions S.p.A. in doValue S.p.A. doValue S.p.A. - doValue IT/back office company - Following the partnership with IBM signed in July 2020 - Significant employee transfer fr
Slide 87: Group Organisational Structure
Group Organisational Structure Overview Chief Group Control Officer Board of Directors (Paolo Poncetta) CEO (Andrea Mangoni) General Manager of Country Manager Chief Market Strategy & Regional Manager Regional Manager Corporate Functions and General Counsel Italy Product Development Officer Iberia H
Slide 88: Financial highlights (FY 2021)
Financial highlights (FY 2021) Item FY 2020 FY 2021 Delta Comments broadly GBV €158bn €149bn • GBV dynamic driven by acceleration of collections post COVID stable and by one-off disposals by banks clients, partially offset by inflows Collections €4.3bn €5.7bn +34% • Approx. €8.3bn of mandates alread
Slide 89: A strong 2021 is the bedrock of the BP 2022-2024
Slide updated to reflect expiration A strong 2021 is the bedrock of the BP 2022-2024 of the Sareb contract EBTIDA ex NRIs (€m) EBITDA margin ex NRI (%) Free Cash Flow (€m) As per Business Target EBITDA Plan 2022-2024 margin of 38% ≈ 18-19% EBITDA CAGR 39% More than €300m (2017-2024) of Free Cash Flo
Slide 90: Gross Revenues (FY 2021)
Gross Revenues (FY 2021) Gross Revenues (€m) Comments €50m €66m • Gross Revenues growth at +36% Outsourcing Fees Outsourcing Fees - Larger consolidation perimeter in 2021 vs 2020 (doValue Greece) (12% of Gross (11% of Gross - Full contribution of doValue Greece in 2021 (only 7 months in 2020) Revenu
Slide 91: Operating Expenses (FY 2021)
Operating Expenses (FY 2021) Operating Expenses ex NRIs (€m) Comments • OpEx as a % of Gross Revenues decreasing to 53% (from 58%) 58% of 53% of - All OpEx lines decreasing as % of Gross Revenues Gross Revenues Gross Revenues - Driving EBITDA margin uplift from 30% to 35% • Growth in OpEx in absolut
Slide 92: EBITDA (FY 2021)
EBITDA (FY 2021) EBITDA ex NRIs (€m) Comments • EBITDA ex NRIs growth at +58% 30.3% 35.1% EBITDA ex NRIs EBITDA ex NRIs - Larger consolidation perimeter in 2021 vs 2020 (doValue Greece) margin margin - Full contribution of doValue Greece in 2021 (only 7 months in 2020) - Pro-forma1 EBITDA ex NRIs gr
Slide 93: Regional Performance (FY 2021)
Regional Performance (FY 2021) doValue Hellenic Group Italy Iberia Region €1.7bn €1.3bn €2.7bn Collections €5.7bn (30% of tot) (23% of tot) (47% of tot) Collection Rate 4.3% 2.4% 6.0% 6.6% €180m €220m €172m Gross Revenues €572m (31% of tot) (38% of tot) (30% of tot) €40m €119m €42m EBITDA ex NRIs €2
Slide 94: Net Income (FY 2021)
Net Income (FY 2021) Attributable Net Income (€m) Comments +4.2x • Net Income driven by EBITDA growth, partially offset by higher: - D&A due to full contribution of doValue Greece and Sareb contract - Provisions for Risk and Charges (mainly group redundancies) - Financial Charges due to increase in
Slide 95: Cash Flow (FY 2021)
Cash Flow (FY 2021) Cash Flow (€m) 199 1 140 ( 30 ) (9) 96 ( 21 ) ( 13 ) ( 33 ) ( 31 ) ( 21 ) ( 26 ) (5) (3) 9 Reported Capex Adj. for LTI Delta NWC Delta other Operating Taxes Financial Free Financial assets Tax Claim Share Dividends Dividends Cash Flow EBITDA assets and Cash Flow charges Cash Flow
Slide 96: Disclaimer
Disclaimer This disclaimer applies to all documents and information provided herein and to any verbal or written comments of person presenting them. This presentation and any materials distributed in connection herewith, taken together with any such verbal or written comments, including the contents