Dovalue S.p.a. · MIL:DOV
Dovalue — FY2024 Earnings Presentation
28 slides from Dovalue's earnings presentation, Feb 28, 2025
Slide 1: Preliminary FY 2024 Financial Results
Preliminary FY 2024 Financial Results FEBRUARY 28TH, 2025
Slide 2: Executive summary
Executive summary • €10bn GBV from new business in 2024, above the €8bn annual target, 70% of 2025 target reached New Business1 ~€10bn • Revenues synergies already achieved with value-added services provided to Gardant’s customers Gardant Integration Ongoing • EBITDA ex NRI at €165m at the high-end
Slide 3: GBV from new business significantly above the €8bn target in 2024
GBV from new business significantly above the €8bn target in 2024 GBV FROM NEW BUSINESS IN 2024 NEW MANDATES COMPOSITION ~95% ~215% ~125% % of target By origination 4.3 9.9 33% 5.6 Primary 2.8 Secondary New Mandates & Forward Total New GBV from Secondary Mandates 67% Commitments flows New Business C
Slide 4: Current contracts and Pipeline will allow us to reach 2025 target ahead of time
Current contracts and Pipeline will allow us to reach 2025 target ahead of time YTD PROGRESS 18-MONTH PIPELINE GBV FROM NEW BUSINESS BY COUNTRY BY ASSET CLASS 21% Italy 11% Greece YTD NPL Greece €5.4bn Italy YTD Spain 16% UTP & EA 7% New GBV 3% REO Cyprus YTD YTD 73% 69% Non-Banking NPE ~70% of annu
Slide 5: doValue is on track for Gardant successful integration
doValue is on track for Gardant successful integration Track record of the group integrations in Focus on Gardant group integration Synergies Italy Integration of UniCredit Credit • Signed contracts to provide VAS services 2015 Management Bank to Gardant’s customers Up to €15m Annual Pre-Tax ~900 FT
Slide 6: Delivering targets outlined at the 2024 Capital Markets Day
Delivering targets outlined at the 2024 Capital Markets Day ENGINE 2 CAPITAL 2024 GBV OF GROWTH STRUCTURE FINANCIALS Achieved ~€115bn GBV at Mortgage 31/12/2024 2024-2026 brokerage JV, Refinancing of 2025 €460-480m gross €8bn GBV from new Advisory unit, Asset revenues BP business p.a. management co-
Slide 7: Strong start to 2025
Strong start to 2025 Hellenic Region New €3.9 billion GBV mandates in the Hellenic region since the beginning of the year Italy New €1.5bn mandates in Italy since the beginning of the year €0.4 billion for master servicing 2030 Bond New €300 million bond with 7% coupon rate and 2030 maturity oversub
Slide 8: Financial Results
Financial Results Titolo breaker slide Davide Soffietti Group CFO
Slide 9: Financials at a glance
Financials at a glance FY FY ∆% COMMENTS 2024 2023 YoY • Gross revenues in line with the high end of guidance Gross Revenues 479 481 (0.4)% • Strong ancillary revenues more than offset the lower level of disposals vs 2023 Net Revenues • Higher outsourcing costs driven by Italy due to 433 440 (1.5)%
Slide 10: Gross Revenues
Gross Revenues Gross Revenues (€m) COMMENTS (0.4)% 481 • Group 479 • Gross revenues approximately flat YoY as the lower disposals were largely offset 11% by higher ancillaries, further increasing diversification of revenue 14% • Non-NPL revenues in 2024 amounted to 35% of gross revenues • Hellenic R
Slide 11: Operating Expenses
Operating Expenses Operating Expenses ex NRIs (€m) COMMENTS % of Gross Revenues 51% 49% 54% 56% • Total Operating expenses +2.8% • Successfully contained the natural increase in operating costs from the consolidation of Gardant thanks to continued cost discipline and despite the tough comparison bas
Slide 12: EBITDA ex NRIs
EBITDA ex NRIs EBITDA ex NRIs (€m) COMMENTS EBITDA ex NRIs 41.2% 41.7% 37.2% 34.4% • Group margin % • EBITDA ex NRIs at the high-end of Guidance, reaching €165m in 2024 (-7.8% YoY), also thank to Gardant contribution in December (7.8)% • Variation mainly driven by lower disposals and unfavorable com
Slide 13: Net Income
Net Income FY FY COMMENTS €m Delta (%) 2024 2023 EBITDA ex NRIs 164.8 178.7 (7.8)% • Lower EBITDA ex NRIs driven by lower disposals and unfavorable comparison base linked to the release of provisions for former CEO MBO (€5.9m) Non-Recurring Items (10.8) (3.4) 221.7% • Increase in NRIs mainly due to
Slide 14: Cash Flow
Cash Flow €m Q4 2024 Q4 2023 FY 2024 FY 2023 COMMENTS EBITDA 61.9 60.0 154.0 175.3 • Cash flow from operations, equal to €83.7m, in 2024, +6% higher than LY (€79.2m) with a much higher cash conversion (54% vs. 44%) Capex (11.4) (12.2) (23.8) (21.4) • Moderate increase in Capex (+€2.4m YoY), in line
Slide 15: Financial Structure
Financial Structure Net Debt (€m) COMMENTS Leverage • Net leverage at 2.4x, better than guidance (2.6x) due to stronger cash-flow production vs expectations especially in doV Italy and Gardant 2.7x 3.0x 2.9x 3.1x 2.4x(1) • Solid liquidity buffer of €264m, including €130m undrawn RCF lines (o/w €80m
Slide 16: Streamlined capital structure
Streamlined capital structure Debt maturity profile (€m) Financial leverage targets Dividend distributions COMMENTS 2024 PF 2026 2025 2026 300 266 • Very successful issuance of new SSNs for €300m with strong 50-70% 2.4x ≤1.5x(1) - demand from the market (6x oversubscribed) NI ex NRIs • Cost of debt
Slide 17: 2025 Guidance
2025 Guidance 2025 COMMENTS Gross revenues €600-615m • Non-NPL revenues to ~ 40-45% in 2026 from 35% in 2024 • Slight increase in GBV YoY as solid inflows are offset by increasing collection rate Gross Book Value €130-135bn • ~€8bn p.a. new business (€6bn new mandates, €2bn future flows) EBITDA ex N
Slide 18: Appendix
Appendix Titolo breaker slide
Slide 19: Seasonality: an historical overview
Seasonality: an historical overview Gross Revenues (€m) COMMENTS 35% % of FY 33% • The servicing business is highly affected by seasonal 31% Gross Revenues 28% 26% factors impacting on collection capability: mainly 24% 25% 24% 22% 22% 23% 186 24% 22% closure of courts and debtors’ overall decisions
Slide 20: Quarterly Financials at a glance
Quarterly Financials at a glance Q4 Q4 ∆% 2024 2023 YoY Gross Revenues 165 149 10.8% Net Revenues 150 138 9.3% EBITDA ex NRIs 69 61 12.3% EBITDA ex NRIs 41.7% 41.2% 0.6 p.p. margin Net Income ex NRIs 2 12 - Net Income (8) 8 - Notes: All figures except Reported Net Income exclude Portugal which is co
Slide 21: Regional Performance
Regional Performance FY 2024 Hellenic Combined Group Region Italy Spain GBV €136bn €39bn €86bn €11bn Collections €4.8bn €2.0bn €1.8bn €1.0bn ACR 4.3% 5.6% 3.1% 9.7% Gross Revenues (1) €479m €243m €183m €53m EBITDA ex NRIs (1) €165m €131m €43m(2) €3m EBITDA ex NRIs margin (1) 34.4% 53.7% 23.4%(2) 5.0
Slide 22: GBV dynamics
GBV dynamics GBV evolution COMMENTS Improvement in GBV dynamic: natural GBV reduction being offset by stable inflows from existing clients and solid new business +16.6% Inflows from new clients: intakes by region worth €0.9bn from Italy, ~40% NPLs, €6.3bn from the Hellenic Region, mainly NPLs, of wh
Slide 23: Condensed Income Statement
Condensed Income Statement 12/31/2023 Condensed Income Statement 12/31/2024 Change € Change % Restated (*) Servicing Revenues: 397,150 419,890 (22,740) (5.4)% o/w: NPE revenues 353,325 366,697 (13,372) (3.6)% o/w: REO revenues 43,825 53,193 (9,368) (17.6)% Co-investment revenues 950 1,290 (340) (26.
Slide 24: Condensed Balance Sheet
Condensed Balance Sheet 12/31/2023 Condensed Balance Sheet 12/31/2024 Change € Change % Restated (*) Cash and liquid securities 232,169 112,376 119,793 106.6% Financial assets 49,293 46,167 3,126 6.8% Property, plant and equipment 52,305 48,678 3,627 7.5% Intangible assets 682,684 473,784 208,900 44
Slide 25: Condensed Cash Flow
Condensed Cash Flow Condensed Cash flow 12/31/2024 12/31/2023 EBITDA 154,045 175,345 Capex (23,769) (21,361) EBITDA-Capex 130,276 153,984 as % of EBITDA 85% 88% Adjustment for accrual on share-based incentive system payments 1,176 (5,853) Changes in Net Working Capital (NWC) (5,895) (10,673) Changes
Slide 26: Glossary
Glossary Early Arrears Loans that are up to 90 days past due Agreement with commercial bank related to the management of all future NPL generation by the bank for number of years, customary feature of credit servicing platforms spun off by Forward Flows commercial banks FTE Full Time Equivalent, i.e
Slide 27: Disclaimer
Disclaimer This presentation is not a prospectus and not an offer of securities for sale to U.S. persons or in any jurisdiction, including in or into the United States, Canada, Japan or Australia. This disclaimer applies to all documents and information provided herein and to any verbal or written c
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