Moltiply Group S.p.a. · MIL:MOL
Moltiply — Gruppo MutuiOnline — FY2020 Earnings Presentation
43 slides from Moltiply's earnings presentation, Mar 17, 2021
Slide 1: Full Year 2020 Results
Full Year 2020 Results March 17th, 2021
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 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* 1,944 FTE Group structure as of December 31st, 2020 * 2020 average 8
Slide 9: Broking Division structure
Broking Division structure Group structure as of December 31st, 2020 9
Slide 10: BPO Division structure
BPO Division structure Group structure as of December 31st, 2020 10
Slide 11: Major milestones
Major milestones START-UP GROWTH RESTRUCTURING NEW GROWTH € 259.2M € 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 € 38.5M € 51.0M € 37.7M € 21.8M € 13.2M € 0.1M € 1.0M € 2.7M € 4.5M € 7.8M 2000 2001 2002 2003 2004 2005 2006 2007
Slide 12: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 12
Slide 13: 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 14: Shareholding Structure
Shareholding Structure Shareholding structure as of March 17th, 2021* Treasury shares 5.67% Alma Ventures** 32.10% Free Float 35.37% 5.05% 21.81% Kayne Anderson Rudnick Investmentaktiengesellschaft für Investment Management LLC langfristige Investoren TGV * Share ownership as registered in last Shar
Slide 15: Share Performance since IPO
Share Performance since IPO KEY STOCK DATA as of Mar. 16th, 2021 Number of Shares 40,000,000 Treasury Shares 2,266,855 Outstanding Shares 37,733,145 Price per Share € 41.60 Market Capitalisation € 1,570 M Since November 2018, MOL is included in the Italian FTSE Italia MID-CAP Index 15
Slide 16: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 16
Slide 17: Full-year highlights
Full-year highlights EBIT (€m) Revenues 80 (€m) 60 Y-o-Y +24.3% 63.1 280 40 50.8 Y-o-Y 240 +17.8% 259.2 20 0 200 219.9 2019 2020 EBIT margin 23.1% 24.4% 160 120 Net Income (€m) 80 150 130.7 120 40 Y-o-Y Tax benefit 90 85.1 from the +221.5% revaluations 0 60 Y-o-Y 2019 2020 30 +12.1% 40.6 45.6 0 2019
Slide 18: Performance by Division
Performance by Division EBIT Revenues (€m) (€m) 80 280 63.1 259.2 60 50.8 Y-o-Y +24.3% Y-o-Y Y-o-Y 240 219.9 +17.8% 40 26.3 41.9 +59.0 % Y-o-Y +28.0% 20 Y-o-Y 200 111.1 24.4 21.2 -13.1% 0 86.8 2019 2020 160 120 Broking Division BPO Division Y-o-Y 80 +11.2% 133.1 148.1 40 EBIT margin (percent of reve
Slide 19: Evolution of the Italian residential mortgage market
Evolution of the Italian residential mortgage market • The residential mortgage market has been growing Y-o-Y in recent months, thanks to the contribution of purchase mortgages, which offset a gradual drop of the remortgage volumes. • Data from Assofin, an association representing the main banks act
Slide 20: Business Outlook
Business Outlook • The strength of the historic businesses, the contribution of the new acquisitions and the Group’s financial solidity make it possible to look to 2021 with cautious optimism, also because the health, economic and financial situation in Italy, although difficult, currently appears t
Slide 21: Broking Division – Business outlook 1/3
Broking Division – Business outlook 1/3 • The Broking Division recorded exceptional results in 2020 in terms of growth and margins, also because of the Covid-19 pandemic, which accelerated the use of remote channels by Italian consumers. • For the FY 2021, any forecast on the development of the busi
Slide 22: Broking Division – Business outlook 2/3
Broking Division – Business outlook 2/3 Consumer Loan Broking Revenues (€m) • The broadening of the product supply and the redesign of 60 the web site, together with a gradual normalization of the 50 market, should allow for a resumption of growth during 40 2021. 30 Y-o-Y 20 Y-o-Y -17.1% Y-o-Y -34.3
Slide 23: Broking Division – Business outlook 3/3
Broking Division – Business outlook 3/3 E-Commerce Price Comparison Revenues (€m) • Revenue growth, given the exceptional performance in 60 2020, will only be possible against a significant increase in Y-o-Y 50 +45.0% marketing expenses, with a foreseeable lower contribution of 40 34.5 Y-o-Y Y-o-Y t
Slide 24: BPO Division – Business outlook 1/5
BPO Division – Business outlook 1/5 • Overall, the BPO Division’s 2020 results saw an increase in revenues and a reduction in operating margins, primarily due to a revenue mix effect in Mortgage BPO, a disappointing performance of Insurance BPO and the negative contribution of some innovative initia
Slide 25: BPO Division – Business outlook 2/5
BPO Division – Business outlook 2/5 Real Estate Services BPO Revenues (€m) • The line of business performed below management’s 60 expectations in 2020, with turnover slightly down, both because of 50 the pandemic and for the slower-than-expected growth of a 40 Y-o-Y customer acquired in late 2019 th
Slide 26: BPO Division – Business outlook 3/5
BPO Division – Business outlook 3/5 Loans BPO Revenues (€m) • 2020 was a record year for BPO Loans, which grew both in 60 terms of revenues and percentage margins. This result was 50 achieved by entering the market for government- 40 Y-o-Y +10.3% guaranteed SME loan origination support services, who
Slide 27: BPO Division – Business outlook 4/5
BPO Division – Business outlook 4/5 Insurance BPO Revenues • The performance of this line of business was particularly disappointing 60 (€m) during 2020, with strong impacts of reduction in claims handled, and 50 resulting in a negative contribution to the Division’s margins, despite the relatively
Slide 28: BPO Division – Business outlook 5/5
BPO Division – Business outlook 5/5 BPO Leasing/Rental Revenues • 2020 ended with a very positive Q4, thanks to a one-off activity related 60 (€m) to car tax stamp duty that allowed us to recover from the difficulties of 50 Y-o-Y the first part of 2020 and to post a turnover in line with 2019. -0.3%
Slide 29: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 29
Slide 30: Revenue trends by Division
Revenue trends by Division Group Revenues (€m) Collapse of the Italian Mortgage Market 259.2 240 219.9 200 43% 185.1 58% 39% 160 152.8 138.1 43% 40% 120.7 120 61% 44% 44% 45% 47% 80 71.8 68.3 57% 53.4 61% 46.4 47.9 51.0 58% 37% 57% 37.7 38.5 40 66% 40% 56% 56% 21.8 60% 61% 45% 53% 60% 63% 58% 42% 55
Slide 31: Revenue Breakdown by Business Line
Revenue Breakdown by Business Line 150 Broking Division Revenues (€m) 120 111.1 4% Other Revenues Telco & Energy Comparison* 90 86.8 31% 3% E-Commerce Price Comparison 79.1 3% Insurance Broking 67.2 27% Consumer Loan Broking 61% 24% 45% 61.0 3% Mortgage Broking 57.2 18% 60 3% 2% 30% 19% 18% 4% 28% 3
Slide 32: Revenue Breakdown by Business Line
Revenue Breakdown by Business Line 150 BPO Division Revenues 148.1 (€m) 133.1 22% Other revenues 120 24% BPO Leasing/Rental 106.0 6% Investment Services BPO 5% Insurance BPO 21% 7% 90 85.6 Loans BPO 4% 17% 77.1 10% Real Estate Services BPO* 8% 11% 8% 17% Mortgage BPO 9% 61% 63.6 8% 13% 45% 20% 60 10
Slide 33: Operating Income by Division
Operating Income by Division EBIT (€m) Collapse of the 63.1 60 Italian Mortgage Market 50.8 + 46.1 39.7 40 Launch of 35.2 66% 30.9 Segugio.it 32.0 52% 51% 46% 21.9 21.5 22.0 47% 20 17.6 57% 77% 14.5 8.5 78% 93% 84% 36% 48% 77% 3.6 5.6 53% 54% 49% 34% 67% 32% 64% 43% 33% 23% 22% 7% 16% 23% 0 68% 2006
Slide 34: Net Income
Net Income Net income (€m) 150 130.7* 120 Tax benefit 90 85.1 from the revaluations 60 40.6 34.4 23.5 24.8 27.5 30 9.7 14.8 14.4 15.3 20.9 9.9 45.6 5.2 3.6 3.8 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net income margin (%) 60% 50.4%* 50% 40% 31.9% 30.1% 28.7% 29.1
Slide 35: Dividend Payout
Dividend Payout Earnings per share, consolidated (€) 4.00 3.42 3.50 3.00 2.50 2.00 1.50 1.07 0.89 1.00 0.59 0.69 0.56 0.58 0.38 0.38 0.41 0.50 0.25 0.24 0.09 0.09 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Earnings per share Dividends per outstanding share (€) 1.20 1.
Slide 36: Appendix
Teh Appendix
Slide 37: Quarterly Profit & Loss
Quarterly Profit & Loss (€000) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Revenues 80,459 58,616 61,954 58,142 63,332 Other income 1,308 939 1,069 840 1,145 Capitalization of internal costs 906 778 1,166 769 585 Service costs (32,169) (23,273) (24,389) (24,940) (24,718) Personnel costs (23,636) (16,743
Slide 38: Q4 Profit & Loss
Q4 Profit & Loss (€000) Q4 2020 Q4 2019 % Var. Revenues 80,459 63,332 27.0% Other income 1,308 1,145 14.2% Capitalization of internal costs 906 585 54.9% Service costs (32,169) (24,718) 30.1% Personnel costs (23,636) (18,855) 25.4% Other operating costs (2,701) (2,429) 11.2% Depreciation and amortiz
Slide 39: Full Year Profit & Loss
Full Year Profit & Loss (€000) FY 2020 FY 2019 % Var. Revenues 259,171 219,935 17.8% Other income 4,156 4,210 -1.3% Capitalization of internal costs 3,619 2,217 63.2% Service costs (104,771) (85,939) 21.9% Personnel costs (76,043) (68,654) 10.8% Other operating costs (9,564) (7,753) 23.4% Depreciati
Slide 40: Balance Sheet – Asset Side
Balance Sheet – Asset Side As of December 31, December 31, (€000) Change % 2020 2019 ASSETS Intangible assets 196,095 107,282 88,813 82.8% Property, plant and equipment 27,841 25,512 2,329 9.1% Participation measured with equity method 2,320 1,786 534 29.9% Financial assets at fair value 60,503 54,3
Slide 41: Balance Sheet – Liability Side
Balance Sheet – Liability Side As of December 31, December 31, (€000) Change % 2020 2019 LIABILITIES AND SHAREHOLDERS' EQUITY Total group shareholders' equity 233,257 112,571 120,686 107.2% Minority interests 3,575 1,627 1,948 119.7% Total shareholders' equity 236,832 114,198 122,634 107.4% Long-ter
Slide 42: Net Financial Position
Net Financial Position As of December 31, December 31, (€000) Change % 2020 2019 A. Cash and cash equivalents 121,888 34,654 87,234 251.7% B. Other cash equivalents - - - N/A C. Securities held for trading 4,588 2,184 2,404 110.1% D. Liquidity (A) + (B) + (C) 126,476 36,838 89,638 243.3% E. Current
Slide 43: 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