Slide 1: Financial Results to 31 March 2018
Financial Results to 31 March 2018 May 11th 2018
Slide 2: doBank team presenting today
doBank team presenting today General Manager of Fincantieri in 2015 From 2013 to 2015 Chairman and CEO of Sorgenia CFO, General Manager of International Operations of Telecom Italia and Chairman of Telecom Italia Sparkle from 2009 to 2013 Andrea Mangoni Previously CEO of ACEA Group CEO CEO
Slide 3: 1. Key Highlights
1. Key Highlights
Slide 4: Summary
Summary Gross Collections: €374m vs €394m in Q1 2017: -5% despite -9% stock GBV1, ex new on-boarding Gross Revenues: €46m vs €45m in Q1 2017 (+2%) Financial results Net Revenues: €43m vs €41m in Q1 2017 (+4%), outsourcing fees -12% Q1 18 vs Q1 17 EBITDA: €11m vs €10m in Q1 2017 (+12%), EBITD
Slide 5: Q1 2018 Financial results
Q1 2018 Financial results New servicing mandates (ca. €12.1bn GBV), on-boarded progressively during the quarter, to be fully reflected in collections from Q2 onwards Gross Revenues growth due to higher base fees, improving average performance fees, higher ancillaries & other revenues and indemni
Slide 6: On-boarding of recent contract wins on track with expectations
On-boarding of recent contract wins on track with expectations Massive, automatized on-boarding process in line with budget and involving >100k loan files in Q1 18 Timing phase-out of different portfolios: REV and Berenice: on-boarding started in mid-February, loan management in March MPS: o
Slide 7: Italian NPL servicing market growth opportunities
Italian NPL servicing market growth opportunities Growing portfolio sales to investors helped drive Italian banks’ NPL volumes down from the 2015 peak and sustained the third-party servicing market, expected at €240bn in 2018 from approximately €170bn in 2017 Italian banks’ strategies continue t
Slide 8: Greek market opportunity
Greek market opportunity doBank set-up its first foreign branch in Q1 18 through passporting of banking license Branch operational since April with 15+ FTEs by June 2018 and specialized in both NPE liquidation and restructuring Several servicing opportunities with banks and investors clients i
Slide 9: Strategic pillars of IPO plan for 2017
Strategic pillars of IPO plan for 2017 1 1) Add more servicing 2 2) Increase collections and efficiency 3 3) Grow ancillary services business 1 2 3 Efficiency & New Servicing Contracts Ancillary Business Effectiveness Increased Collections on Sold by Outsourced by Existing Portfolios & New Services
Slide 10: 2. Financial Review
2. Financial Review Bank Servicing» Lending Selations'
Slide 11: Key financial highlights
Key financial highlights Q1 2017 Q1 2018 ∆ (%) Largest servicing ~€12.1bn new servicing mandates on- portfolio in the GBV EoP €82.5bn €87.5bn +6.1% boarded between Feb. and March Revenue drivers Italian market €0.3bn inflows from existing clients Collections in line with expectations Best-in-c
Slide 12: Evolution of gross book value under management
Evolution of gross book value under management Significant growth in GBV to €87.5bn (+€10.8bn or +14% vs YE 2017) driven by new servicing mandates REV, Berenice and MPS portfolios progressively on-boarded during the quarter as well as other minor ones Inflows from existing clients and portfoli
Slide 13: Portfolio diversification
Portfolio diversification GBV Composition 2017 Q1 2018 Investors 64% / Banks 36% Investors 69% / Banks 31% Other Investors Italian REV Other Banks Recovery Higher diversification vs IPO time: 4% UniCredit Fund 3% UniCredit 4% Other Banks at 31% of GBV (60% at IPO) 11% Intesa SP 23% Investors 20%
Slide 14: Seasonality of collections across quarters
Seasonality of collections across quarters Historical quarterly pattern % on yearly collections1 2015 2016 2017 Seasonality of collections trend confirmed Q1 2018 collections in line with expectations and seasonality Stable collection rate on stock2 GBV (2.4% in Q1 2018 LTM, in line with FY201
Slide 15: Ancillary and other revenues
Ancillary and other revenues Contract with FINO started with full effect on IBIS, doReal Estate and Judicial Management Contract with UCI on legal services now fully operational New contracts related to new on-boarded clients (eg. REV, MPS, etc.) Data governance product offer enriching IBIS
Slide 16: From gross to net revenues
From gross to net revenues Revenues breakdown Q1 2018 €m Higher base fee (+€0.2m) in line with on-boarding of new 91% 9% (8%) servicing contracts at 25% of 46.3 total fees 45.2 4.1 41.9 42.6 Ancillary Base: (3.7) Significant increase in collection 3.5 10.7 fees expected in 2018E in line Collecti
Slide 17: Focus on operating expenses
Focus on operating expenses Operating expenses breakdown €m EBITDA 33% 22% 24% Margin 124.8 Stable operating cost base in Q1 2018 31.6 year-on-year, of which 71% HR costs 15.4 31.2 2.8 3.8 Personnel cost increase, as anticipated, 8.1 41.4 2.0 9.0 due to new management team and IPO 1.9 incentive
Slide 18: NWC and net financial position
NWC and net financial position Net working capital €m Q1 2018 Slight increase in Net Working Capital since YE 17, in line with 100.0 93.1 seasonality of revenues (highly 82.4 seasonal) and costs (more 78.3 (17.6) evenly distributed) Confirmed trend of NWC being positively impacted by shift of cl
Slide 19: Regulatory capital
Regulatory capital CET 1 RWA Breakdown €m €m 144.9 535.5 540.0 141.5 62% 62% 38% 38% 2017 Q1 2018 2017 Q1 2018 Ratio 26% 27% Credit & Counterparty Risk Operational Risk Excess capital to support business growth through M&A and investments as well as remunerate investors Notes: Regulatory capital rat
Slide 20: 3. Appendix
3. Appendix
Slide 21: Condensed consolidated income statement Q1 2018
Condensed consolidated income statement Q1 2018 (€/000) Condensed consolidated income statement First Quarter Change 2018 2017 Amount % Serv icing rev enues 41,947 41,721 226 1% o/w Banks 27,053 38,454 (11,401) (30)% o/w Invest ors 14,894 3,267 11,627 n.s. Co-inv estment rev enues 236 - 236 n.s. Anc
Slide 22: Consolidated balance sheet Q1 2018
Consolidated balance sheet Q1 2018 (€/000) Main consolidated balance sheet items 3/31/2018 12/31/2017 Financial assets 83,965 76,303 at fair v alue through profit or loss 22,853 22,998 at fair v alue through comprehensiv e income 1,002 1,003 at amortised cost - loans and receiv ables with banks 55,6
Slide 23: Consolidated cash flow Q1 2018
Consolidated cash flow Q1 2018 (€/000) Cash Flow 31/03/2018 31/03/2017 EBITDA 11,001 9,861 Net Capex (439) (722) EBITDA-Capex 10,562 9,139 as % of EBITDA 96% 93% Adjustment for accrual on share-based incentiv e system payments 1,607 - Changes in NWC (4,162) (13,786) Changes in other assets/liabiliti
Slide 24: Key Performance Indicators Q1 2018
Key Performance Indicators Q1 2018 (€/000) Key performance indicators 3/31/2018 3/31/2017 12/31/2017 Gross Book Value (Eop) - in millions of Euro - 87,523 82,496 76,703 Collections for the period - in millions of Euro - 374 394 1,836 Collections for the Last Twelv e Months (LTM) - in millions of Eur
Slide 25: Tax assets
Tax assets Tax assets breakdown €m Tax assets are originated from 2015 UCCMB 8.5 0.2 transaction in 2015 A Tax Credit: 29.9 Off-settable against 2017 taxes (currently used 55.6 against VAT) B DTAs (Loss Carry forward): Can be used to off-set future direct and indirect taxes, subject to futur
Slide 26: Disclaimer
Disclaimer This presentation and any materials distributed in connection herewith (together, the “Presentation”) do not constitute or form a part of, and should not be construed as, an offer for sale or subscription of or solicitation of any offer to purchase or subscribe for any securities, and nei