Dovalue S.p.a. · MIL:DOV
Dovalue — Merger or Acquisition (October 2024)
25 slides from Dovalue's merger presentation, October 2024
Slide 1: Unlocking New Frontiers
Unlocking New Frontiers October, 2024 Strictly private & confidential
Slide 2: Disclaimer
Disclaimer YOU MUST READ THE FOLLOWING BEFORE CONTINUING. THE FOLLOWING APPLIES TO THIS DOCUMENT, THE ORAL PRESENTATION OF THE INFORMATION IN THIS DOCUMENT BY DOVALUE S.P.A. (THE “COMPANY”) OR ANY PERSON ON BEHALF OF THE COMPANY, AND ANY QUESTION-AND-ANSWER SESSION THAT FOLLOWS THE ORAL PRESENTATION
Slide 3: Disclaimer
Disclaimer The Company undertakes no obligation to release the results of any revisions to any forward-looking statements in this Presentation that may occur due to any change in its expectations or to reflect events or circumstances after the date of this Presentation and the Company and its Repres
Slide 4: Introducing The New doValue
Introducing The New doValue
Slide 5: Key Highlights of Gardant Acquisition
Key Highlights of Gardant Acquisition Solid strategic rationale accelerating the diversification path and bringing a new industrial shareholder Gardant Acquisition Highlights Total Consideration of €230mn (including €180m cash and €50m net debt recognition), in addition to 4 million newly 2023A 2024
Slide 6: doValue: A Leading Strategic Financial Services Provider
doValue: A Leading Strategic Financial Services Provider Asset-light Credit Management Leader in the most attractive Southern European Leader in Italy and the markets Hellenic region1 #3 anchor shareholders2 Technology and innovation for product development and efficiencies to enhance and protect pr
Slide 7: 2024-2026 Business Plan Accelerated by Gardant Acquisition
2024-2026 Business Plan Accelerated by Gardant Acquisition Following the combination with Gardant, and the significant synergies that will be generated, the Business Plan 24-26 objectives will be accelerated, consolidating doValue’s leadership position in Italy and Southern Europe 2024-2026 Business
Slide 8: Consolidating doValue’s Leadership in Southern Europe’s Largest Markets
Consolidating doValue’s Leadership in Southern Europe’s Largest Markets #1 Player in Italy, Greece and Cyprus and a relevant position in Spain by GBV, with market share benefiting of long-standing relationships with banks and investors Italian NPE Landscape Greek NPE Landscape Spanish NPE Landscape
Slide 9: GBV Intake leads to an Inflection Point with GBV Increase
GBV Intake leads to an Inflection Point with GBV Increase 2024 GBV target of €8bn very much in sight thanks to actual commitments of €6.6bn (86% of full year target), even before accounting for Q3-24 Forward Flows GBV Onboarding to H1 2024 (€bn) New GBV Commitments in Q3 2024 (€bn) 2024 Target New M
Slide 10: Full Set of Products & Capabilities
Full Set of Products & Capabilities doValue is well-equipped to provide Asset Originators and Investors a wide range of essential services for the long term A highly attractive business model Revenue Breakdown by Product, Client Type and Geography (%) Asset Originators Banks & Financial Real Estate
Slide 11: Overall NPL Reference Market Expected to Improve with European NPL Stock Rising
Overall NPL Reference Market Expected to Improve with European NPL Stock Rising doValue is perfectly placed to benefit from a reversal of the cycle, led by worsening macroeconomic conditions EU/EEA NPL stock evolution at a positive inflection point NPL stock evolution from H1 23 to Q2 24 by geograph
Slide 12: More than 80% of Revenues for next Years are Locked In by Existing Contracts
More than 80% of Revenues for next 3 Years are Locked In by Existing Contracts Contract Type Client GBV Estimated Client Key Considerations 2024 2025 2026 Beyond Type (‘23A, €bn) expiry3 GACS SECURITISATIONS1 Stock Agreement Securitisation 28 2042 • doValue recorded a GBV of GREEK/HAPS €116 bn at YE
Slide 13: Visible Pipeline Providing Significant Room for Future GBV Growth
Visible Pipeline Providing Significant Room for Future GBV Growth doValue Potential Pipeline (18 months, €bn) Total €38bn (#39 deals) • All potential deals ongoing, as are portfolio sales generated by Spanish €5bn banks (#5 deals) • >80% of GBV are NPL deals €10bn (#9 deals) • ~€5bn of which are mix
Slide 14: Key Shareholders Support new Business Flows and Investments
Key Shareholders Support new Business Flows and Investments doValue’s platform has attracted the 3 key players in the sector (Fortress, Bain and Elliott1), supporting new business flow and investments. The deal includes a 12-month lock-up on newly issued shares as a consideration for Gardant, and ex
Slide 15: Diversification Opportunities
Diversification Opportunities Opportunity to expand the activity beyond NPLs, setting sights on highly growing businesses, still not explored as of today Global AuM (€ trn) 21,7 2,7 Private assets are Outlook 12,2 expected to grow at 12.2% 9,9 in the next 5 years and 1,4 Alternative assets 3,1 1,3 1
Slide 16: Diversification Beyond NPL Towards Financial Services Provider
Diversification Beyond NPL Towards Financial Services Provider Revenues and margin Achievements towards diversification in LTM New lines of business by business line (€mn, %) UTP Early Arrears Performing REO & Other 33% Mortgage brokering ex-NPL STAGE 2 finThesis ready for go-to-market revenues in G
Slide 17: The Asset Management Business Opportunity
The Asset Management Business Opportunity Gardant Investor SGR benefits from the origination, underwriting, management and servicing capabilities of the Group Asset Management Strategy Overview of Gardant AM Funds Gardant Investor SGR has €715mn of funding and AUM of €559m as of 31/12/2023 • Asset M
Slide 18: Technology, Innovation & Transformation to Improve Efficiency and Profitability
Technology, Innovation & Transformation to Improve Efficiency and Profitability Technology and Innovation Initiatives New technology applications to enable Strengthened tech and analytics Extract value from data minimum human touch capabilities • Analytics& GenAI solutions : segmentation • Next wave
Slide 19: Enriched Management Team, Enlarged Shareholder Base & Improved Governance
Enriched Management Team, Enlarged Shareholder Base & Improved Governance Management team Board of Directors composition1 Significant improvement in Board of Directors metrics post renewal Enhanced governance structure, with a Manuela Rodolfo Guido Davide Daniele Chairman who actively supports the F
Slide 20: Solid Capital Structure providing Ample Coverage of Bond Maturities
Solid Capital Structure providing Ample Coverage of Bond Maturities €150mn rights issue1, which is 55% covered by an underwriting commitment from certain shareholders of Gardant and 45% by a pre- underwriting commitments by banks €516mn bank financing package1: including 5-year amortising term loan
Slide 21: Targets post Gardant
Targets post Gardant Targets to 2026 are based on conservative assumptions and reflect the strong focus on protecting profitability and enhancing cash flow generation 2026E 2026E Key Considerations doValue CMD post Gardant1 • 2026E EBITDA includes synergies generated from the EBITDA ex NRIs €185-195
Slide 22: Efficient Capital Structure paving the way to Sustainable Higher Cash Flow Generation
Efficient Capital Structure paving the way to Sustainable Higher Cash Flow Generation doValue’s business model and capability to generate significant free cash flows provide financial flexibility to structurally reduce leverage, support growth initiatives, offer an attractive shareholders remunerati
Slide 23: Summary of Key Investment Highlights
Summary of Key Investment Highlights Market Leadership to Resilient Business Model Solid Capital Structure & Capture Potential Tailwinds with Growth Potential Cash Flow Generation Stable, long-term contracts with €150m Rights Issue & €500m new Bank #1 in Italy and #1 Hellenic Region leading clients
Slide 24: Key Historical Figures
Key Historical Figures (€mn) 1 2022 2023 1H2024 COMMENTSon H1 2024 Key Considerations • Reduction due to lower REO revenues in Spain and postponement of ongoing disposal to 2H in Greece Gross Revenues €558mn €485mn €216mn • Trend partly offset by in ancillary revenues primarily in Greece • Net reven
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