Moltiply Group S.p.a. · MIL:MOL
Moltiply — Gruppo MutuiOnline — Q3 2019 Earnings Presentation
37 slides from Moltiply's earnings presentation, Nov 13, 2019
Slide 1: Third Quarter 2019 Results
Third Quarter 2019 Results November 13th, 2019
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 Launched in September Focus on marketing activities, Commission on new policy sales aggregator for 2012, is number two player in mostly TV and Internet. With the plus (lower) renewal fees from insu
Slide 7: BPO Division – Main services
BPO Division – Main services Product Life Cycle DISTRIBUTION UNDERWRITING/CLOSING SERVICING • Commercial activities for online • Income Analysis • Current Account Servicing Mortgage lenders (in lenders’ name) • Technical-Legal Analysis • Collections BPO • Centralized packaging • Anti-fraud checks •
Slide 8: Group structure
Group structure Headcount* 1,761 FTE Group structure as of November 4th, 2019 * 2018 average 8
Slide 9: Major milestones
Major milestones START-UP GROWTH RESHAPING NEW GROWTH € 185.1M € 152.8M Collapse of € 138.1M Italian mortgage € 120.7M market € 71.8M € 68.3M € 46.4M € 47.9M € 53.4M € 51.0M € 37.7M € 38.5M € 21.8M € 7.8M € 13.2M € 0.1M € 1.0M € 2.7M € 4.5M 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 10: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 10
Slide 11: 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 12: Shareholding Structure
Shareholding Structure Shareholding structure as of November 11th, 2019* Treasury shares 6.17% Alma Ventures** 32.10% Free Float 30.50% 9.42% 21.81% Investmentaktiengesellschaft für Frankfurter langfristige Investoren TGV Aktienfonds für Stiftungen * Share ownership as registered in last Shareholder
Slide 13: Share Performance since IPO
Share Performance since IPO KEY STOCK DATA as of Nov 8th, 2019 Number of Shares 40,000,000 Treasury Shares 2,467,331 Outstanding Shares 37,532,669 Price per Share € 18.30 Market Capitalisation € 686.8 M Since November 2018, MOL is included in the Italian FTSE Italia MID-CAP Index 13
Slide 14: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 14
Slide 15: Q3 highlights
Q3 highlights EBIT Revenues (€m) (€m) 15 Y-o-Y 60 +0.7% 10 11.0 11.0 50 Y-o-Y 5 +10.8% 48.6 40 43.9 0 Q3 2018 Q3 2019 30 EBIT margin 25.0% 22.7% 20 Net Income (€m) 10 15 10 Y-o-Y 0 -7.6% Q3 2018 Q3 2019 5 8.2 7.6 0 Q3 2018 Q3 2019 NI margin 18.8% 15.7% 15
Slide 16: Performance by Division
Performance by Division EBIT Revenues (€m) (€m) 15 11.0 Y-o-Y 11.0 60 +0.7% 10 Y-o-Y 4.5 5.6 +25.5% 50 48.6 Y-o-Y 5 43.9 +10.8% Y-o-Y 6.5 5.4 Y-o-Y -16.5% 40 +7.6% 0 19.5 Q3 2018 Q3 2019 18.2 30 Broking Division BPO Division 20 Y-o-Y +13.1% 25.7 29.1 10 EBIT margin (percent of revenues) 0 Q3 2018 Q3
Slide 17: 9M highlights
9M highlights EBIT Revenues (€m) (€m) 40 Y-o-Y +7.5% 180 30 34.1 36.7 160 20 Y-o-Y 140 +21.1% 156.6 10 120 129.3 0 9M 2018 9M 2019 100 EBIT margin 26.4% 23.4% 80 60 Net Income (€m) 40 40 20 30 Y-o-Y 0 +12.8% 20 28.0 9M 2018 9M 2019 24.8 10 0 9M 2018 9M 2019 NI margin 19.2% 17.9% 17
Slide 18: 9M Performance by Division
9M Performance by Division EBIT Revenues (€m) (€m) 36.7 40 34.1 Y-o-Y +7.5% 180 30 Y-o-Y 16.6 17.9 +7.8% 160 156.6 20 Y-o-Y Y-o-Y 140 129.3 +21.1% Y-o-Y 10 +7.1% 17.5 18.8 +9.9% 120 60.8 0 9M 2018 9M 2019 100 55.4 80 Broking Division BPO Division 60 Y-o-Y +29.6% 95.8 40 73.9 EBIT margin 20 (percent
Slide 19: Evolution of the Italian residential mortgage market
Evolution of the Italian residential mortgage market • In Q3 2019, the residential mortgage market is down Y-o-Y, due to a drop both of purchase mortgage and remortgage volumes. • Data from Assofin, an industry association which represents the main lenders active in the sector, show a year on year d
Slide 20: Broking Division – Business outlook
Broking Division – Business outlook • The Broking Division, while still suffering in Q3 2019 from the decrease of mortgage demand observed in previous periods, presents an improving outlook, thanks to the recovery of the mortgage market and the optimization of the E-Commerce Price Comparison. Mortga
Slide 21: BPO Division – Business outlook
BPO Division – Business outlook • The results for 9M 2019 of the BPO Division are in line with management’s expectations, as previously communicated, with a growth in turnover compared to 9M 2018, mainly due to the enlargement of the consolidation area. • However, in Q3 2019, the operating margin co
Slide 22: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 22
Slide 23: Revenue trends by Division
Revenue trends by Division Group Revenues (€m) Collapse of the Italian Mortgage Market 200 185.1 160 152.8 138.1 43% 58% 120.7 120 44% 40% 44% 61% 47% 80 71.8 45% 68.3 53.4 51.0 46.4 47.9 37% 57% 58% 37.7 38.5 56% 40 66% 61% 40% 56% 21.8 60% 45% 53% 60% 63% 58% 42% 60% 40% 40% 34% 39% 55% 42% 0 2006
Slide 24: Revenue Breakdown by Business Line – Broking Division
Revenue Breakdown by Business Line 90 Broking Division Revenues (€m) 79.1 80 Other Revenues 3% E-Commerce Price Comparison 70 67.2 24% 3% Insurance Broking 61.0 60 57.2 3% Consumer Loan Broking 2% 30% Mortgage Broking 50 18% 28% 36% 41.9 40 61% 6% 8% 45% 19% 31.7 32.2 25% 17% 18% 30 27.8 25.1 11% 32
Slide 25: Revenue Breakdown by Business Line – BPO Division
Revenue Breakdown by Business Line 120 BPO Division Revenues (€m) 106.0 100 Other revenues 21% Leasing/Rental BPO 85.6 Investment Services BPO 80 77.1 10% 8% 11% 8% Insurance BPO 9% 63.6 8% CQ Loan BPO 60 10% 20% 17% Mortgage BPO 61% 11% 21% 45% 43.2 40 12% 28% 30.5 14% 29.9 14% 13% 62% 20.6 21.2 35
Slide 26: Operating Income by Division
Operating Income by Division EBIT (€m)50 46.1 Collapse of the Italian Mortgage 39.7 40 Market 35.2 30.9 + 32.0 51% 30 Launch of 46% 21.9 21.5 22.0 Segugio.it 47% 17.6 57% 20 77% 14.5 8.5 78% 93% 84% 36% 10 77% 5.6 53% 54% 49% 3.6 43% 67% 32% 64% 23% 22% 7% 16% 23% 80% 0 33% 20% 68% 2006 2007 (a) 200
Slide 27: Net Income
Net Income Net income (€m) 40 34.1 30 27.5 23.5 24.8 20.9 20 14.8 14.4 15.3 9.7 9.9 10 5.2 3.6 3.8 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net income margin (%) 40% 31.9% 30.1% 28.7% 29.1% 30% 25.7% 23.9% 19.5% 18.0% 18.0% 18.4% 20% 14.5% 9.4% 10% 7.5% 0% 2006 2007 2008 20
Slide 28: Dividend Payout
Dividend Payout Earnings per share, consolidated Dividends per outstanding share (€) (€) 1.00 1.00 0.88 0.90 0.90 0.80 0.80 0.69 0.70 0.70 0.59 0.58 0.60 0.56 0.60 0.50 0.50 0.41 0.38 0.38 0.36 0.37 0.40 0.40 0.30 0,30 0,30 0.30 0.25 0.24 0.30 0.21 0.20 0.20 0.15 0.12 0.12 0.12 0.12 0.09 0.09 0.09 0
Slide 29: Appendix
Appendix 29
Slide 30: Quarterly Profit & Loss
Quarterly Profit & Loss (€000) Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Revenues 48,627 54,358 53,618 55,830 43,885 Other income 1,179 980 906 1,302 1,196 Capitalization of internal costs 540 927 165 384 158 Service costs (18,947) (20,856) (21,418) (21,740) (17,527) Personnel costs (15,579) (17,723)
Slide 31: Q3 Profit & Loss
Q3 Profit & Loss (€000) Q3 2019 Q3 2018 % Var. Revenues 48,627 43,885 10.8% Other income 1,179 1,196 -1.4% Capitalization of internal costs 540 158 241.8% Service costs (18,947) (17,527) 8.1% Personnel costs (15,579) (14,109) 10.4% Other operating costs (2,012) (1,210) 66.3% Depreciation and amortiz
Slide 32: 9M Profit & Loss
9M Profit & Loss (€000) 9M 2019 9M 2018 % Var. Revenues 156,603 129,293 21.1% Other income 3,065 2,777 10.4% Capitalization of internal costs 1,632 706 131.2% Service costs (61,221) (48,416) 26.4% Personnel costs (49,799) (41,673) 19.5% Other operating costs (5,324) (4,012) 32.7% Depreciation and am
Slide 33: Balance Sheet – Asset Side
Balance Sheet – Asset Side As of September 30, December 31, (€000) Change % 2019 2018 ASSETS Intangible assets 108,598 98,641 9,957 10.1% Property, plant and equipment 25,259 16,995 8,264 48.6% Associates measured with equity method 1,901 1,554 347 22.3% Non-current financial assets at fair value 50
Slide 34: Balance Sheet – Liability Side
Balance Sheet – Liability Side As of September 30, December 31, (€000) Change % 2019 2018 LIABILITIES AND SHAREHOLDERS' EQUITY Total equity attributable to the shareholders of the Issuer 97,968 81,792 16,176 19.8% Minority interests 1,623 1,154 469 40.6% Total shareholders' equity 99,591 82,946 16,6
Slide 35: Net Financial Position – 9M evolution
Net Financial Position – 9M evolution As of September 30, December 31, (€000) Change % 2019 2018 A. Cash and cash equivalents 26,877 67,876 (40,999) -60.4% B. Other cash equivalents - - - N/A C. Financial assets held to maturity or for trading 2,323 3,395 (1,072) -31.6% D. Liquidity (A) + (B) + (C)
Slide 36: Net Financial Position – Q3 evolution
Net Financial Position – Q3 evolution As of September 30, June 30, (€000) Change % 2019 2019 A. Cash and cash equivalents 26,877 24,756 2,121 8.6% B. Other cash equivalents - - - N/A C. Financial assets held to maturity or for trading 2,323 3,030 (707) -23.3% D. Liquidity (A) + (B) + (C) 29,200 27,7
Slide 37: 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