Dovalue S.p.a. · MIL:DOV
Dovalue — 9M 2024 Earnings Presentation
29 slides from Dovalue's earnings presentation, Nov 12, 2024
Slide 1: 9M 2024 Financial Results
9M 2024 Financial Results NOVEMBER 12TH, 2024
Slide 2: Business Highlights
Business Highlights Titolo breaker slide Manuela Franchi Group CEO
Slide 3: 9M Business Highlights
9M Business Highlights New Business1 • €8bn total GBV from new business in 9M 2024 already reaching the €8bn annual €8bn target. Expected to exceed target by YE24 EBITDA ex NRIs €96m • EBITDA ex NRI at €96m, above management expectations Guidance • Confirmed FY 2024 guidance confirmed Gardant closin
Slide 4: Prudently set assumptions on new business validated by market trends
Prudently set assumptions on new business validated by market trends Assumptions at Capital Markets Day Current State Italian ~€70-75bn NPE transactions in 2024-2026 Stable forecast as of Sep-2024(1) market Market €33bn pipeline + €6bn new business Pipeline (2) €40bn pipeline next 18 months closed s
Slide 5: Strong new business intake YTD
Strong new business intake YTD GBV FROM NEW BUSINESS IN 2024 YTD NEW GBV YTD COMPOSITION(1) Vs announced Targets €6.0bn €2.0bn €8.0bn By origination >95% >100% 100% 2.3 8.0 32.3% Primary 5.7 Secondary 2.7 67.7% New Mandates & Forward Total New GBV from Secondary Mandates Commitments flows New Busine
Slide 6: Visible Pipeline Providing Room for Future GBV Growth
Visible Pipeline Providing Room for Future GBV Growth doValue Potential Pipeline (next 18 months) Total COMMENTS €33bn FORWARD FLOWS €4bn • Forward Flows pipeline excludes Gardant’s FF agreements with Banco BPM and BPER €5bn • Most deals are primary portfolio sales by banks and a major SLA with a Ti
Slide 7: Diversification program continues according to plan
Diversification program continues according to plan doAdvise fully operational, sole Cross selling with insurance companies to advisor on 90% of doValue sales in Greece since expand product offering in Spain inception, and co-advisor on the remaining 10% ENGINE 2 OF GROWTH FinThesis received regulat
Slide 8: Update on Transformation capex plan
Update on Transformation capex plan Enabling of new businesses driving collections as well as our Engine 2 of growth AI-powered collection Digital Platform Stage 2 model Real Estate Granular tickets models 50% of 2024 investments strategically deployed Driving operational efficiency through AI-drive
Slide 9: Gardant acquisition moves us closer to our 2026 Business Plan objectives
Gardant acquisition moves us closer to our 2026 Business Plan objectives Closing Closing of acquisition and subsequent rights issue expected within Q4 Guidance Confirmed Guidance for Gardant of €50m EBITDA for 2024 Synergies Confirmed €15 million synergies by 2026 (20% revenue, 80% cost) Integration
Slide 10: Financial Results
Financial Results Titolo breaker slide Davide Soffietti Group CFO
Slide 11: Financials at a glance
Financials at a glance Q3 Q3 ∆% 9M 9M ∆% ITEMS (*) COMMENTS 2024 2023 YoY 2024 2023 YoY • Gross revenues trend driven by lower REOs in Gross Spain and delayed disposals in Greece Revenues €100m €105m (4.8)% €314m €332m (5.4)% • In Q3 higher servicing revenues offset by negative ancillaries in Greece
Slide 12: Gross Revenues
Gross Revenues Gross Revenues(1) (€m) COMMENTS (5.4)% • Group 332 • Gross revenues slightly decreasing YoY driven by lower disposals, partially offset by 314 higher ancillaries in Italy in 9M24, further increasing diversification of revenue 14% 12% • Hellenic Region • Revenues down (6.4)% YoY, due l
Slide 13: Operating Expenses
Operating Expenses Operating Expenses ex NRIs (€m) COMMENTS % of Gross Revenues 57% 62% 56% 60% +1.2% • Total Operating expenses 200 • Successfully decreased operating costs YoY in 9M 2024, despite the tough 185 187 comparison base due to one-off events thanks to continued cost discipline 180 9% 9%
Slide 14: EBITDA ex NRIs
EBITDA ex NRIs EBITDA ex NRIs (€m) COMMENTS (1) EBITDA • Group ex NRIs 33.8% 28.4% 35.3% 30.5% • Results above management expectations margin % • EBITDA at €96.5m in 9M 2024 (-18.3% YoY) • Decline mainly driven by corresponding lower direct revenues and unfavorable comparison base linked to the rele
Slide 15: From EBITDA to Attributable Net Income
From EBITDA to Attributable Net Income EBITDA to Net Income bridge (€m) Ex 95.8 50.0 27.4 4.8 NRI Ex NRI 30.5% 15.9% 8.7% 1.5% Margin % EBITDA Net write- Net Provisions & EBIT Net financial Net result of Tax claim EBT Income tax for Minorities Tax claim Attributable downs on Net write-downs of inter
Slide 16: Cash Flow
Cash Flow Q3 Q3 9M 9M COMMENTS €m 2023 2024 2023 2024 EBITDA 35.5 27.1 115.3 92.2 • Cash flow from operations, equal to €23.7m, in 9M, €(14.3)m lower than LY (€38.0m) driven by €(23.2)m lower EBITDA and: Capex (3.7) (5.7) (9.2) (12.3) • Increase in Capex (+€3.2m YoY), in line with the transformation
Slide 17: Financial Structure
Financial Structure Net Debt (€m) COMMENTS • Decrease in cash position in Q3 mostly due to lower EBITDA Leverage • Net leverage in line with seasonality at 3.1x due to combined effect of cash absorption in Greece and lower LTM EBITDA 2.7x 3.0x 2.9x 3.1x • Significant cash-in in April related to arbi
Slide 18: Regional Performance
Regional Performance 9M 2024 Hellenic Group Region Italy Spain GBV €117bn €38bn €67bn €11bn Collections €3.1bn €1.3bn €1.1bn €0.7bn Collection Rate 4.2% 5.8% 2.4% 9.4% Gross Revenues (1) €314m €161m €115m €38m EBITDA ex NRIs (1) €96m €79m €25m(2) €0.1m EBITDA ex NRIs margin (1) 30.5% 48.9% 21.6%(2)
Slide 19: Guidance Confirmed
Guidance Confirmed Titolo breaker slide Davide Soffietti Group CFO
Slide 20: Guidance confirmed for 2024 and 2026
Guidance confirmed for 2024 and 2026 2024 2024 2026 NEW COMMENTS DOVALUE1 GARDANT DOVALUE Gross revenues €460-480m €135m €605-625m • Non-NPL revenues to ~ 40-45% from 30-35% in 2024 • Annual Collection Rate to increase to 5.5% by 2026 thanks to Gross Book Value ~€115bn ~€22bn ~€130bn younger and hig
Slide 21: Appendix
Appendix Titolo breaker slide
Slide 22: Acquisition process status
Acquisition process status Q3 2024 Q4 2024 COMMENTS RESERVED ▪ EGM took place on the EGM REVERSE CAPITAL RIGHTS ISSUE September 11th , 2024 SEPTEMBER STOCK REGULATORY APPROVAL PROCESS INCREASE FOR CLOSING OF SUBSCRIPTION 11° SPLIT CONVERTIBLE GARDANT PERIOD BONDS ▪ Acquisition closing date expected
Slide 23: GBV dynamics
GBV dynamics GBV evolution COMMENTS Resilient GBV dynamic: natural GBV reduction being offset by stable inflows from existing clients and solid new business +1.8% • Inflows from new clients: stable vs LY (+0.8%). Intakes by region worth €0.3bn from Italy, more than 80% NPLs, €4.8bn from the Hellenic
Slide 24: Condensed Income Statement
Condensed Income Statement 9/30/2023 (€/000) 9/30/2024 Change € Change % Restated Servicing Revenues: 272,793 291,498 (18,705) (6.4)% o/w: NPE revenues 240,614 251,623 (11,009) (4.4)% o/w: REO revenues 32,179 39,875 (7,696) (19.3)% Co-investment revenues 1,025 1,064 (39) (3.7)% Ancillary and other r
Slide 25: Condensed Balance Sheet
Condensed Balance Sheet (€/000) 9/30/2024 12/31/2023 Change € Change % Cash and liquid securities 90,509 112,376 (21,867) (19.5)% Financial assets 41,945 46,167 (4,222) (9.1)% Property, plant and equipment 41,936 48,678 (6,742) (13.9)% Intangible assets 454,701 473,784 (19,083) (4.0)% Tax assets 87,
Slide 26: Condensed Cash Flow
Condensed Cash Flow (€/000) 9/30/2024 9/30/2023 12/31/2023 EBITDA 92,152 115,335 175,345 Capex (12,332) (9,160) (21,361) EBITDA-Capex 79,820 106,175 153,984 as % of EBITDA 87% 92% 88% Adjustment for accrual on share-based incentive (176) (4,761) (5,853) system payments Changes in Net Working Capital
Slide 27: Glossary
Glossary BPO Business Process Outsourcing, i.e. the outsourcing of non-strategic support activities by banks 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
Slide 28: Disclaimer
Disclaimer NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO THE UNITED STATES, THE UNITED KINGDOM, CANADA, JAPAN, AUSTRALIA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. This presentation is not a prospectus and not an offer of securities
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