Moltiply Group S.p.a. · MIL:MOL
Moltiply — Gruppo MutuiOnline — H1 2018 Earnings Presentation
39 slides from Moltiply's earnings presentation, Sep 7, 2018
Slide 1: First Half 2018 Results
First Half 2018 Results September 7th, 2018
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 • Founder and key shareholder (16.25% • Founder and key shareholder • Background in auditing (Arthur indirectly through Alma Ventures SA) (16.25%
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* Real Estate 1,473 FTE Gruppo MutuiOnline S.p.A. PP&E S.r.l. renting and 100% support services Centro Centro MutuiOnline S.p.A. PrestitiOnline S.p.A 100% 100% Finanziamenti S.p.A. 100% 100% Istruttorie S.p.A. CercAssicurazioni.it S.r.l. Segugio.it S.r.l. CESAM S.r.l. Quinse
Slide 9: Major milestones
Major milestones START-UP GROWTH RESTRUCTURING NEW GROWTH € 152,8M € 138,1M € 120,7M € 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 2012 2013 2014 2015 2016 2017 2018 BPO D
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 September 4th, 2018* Treasury shares 5,29% Alma Ventures** 32,10% Free Float 31,52% 9,28% 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 Sept. 4th, 2018 Number of Shares 40,000,000 Treasury Shares 2,115,543 Outstanding Shares 37,884,457 Price per Share € 14.34 Market Capitalisation € 543.3 M 13
Slide 14: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 14
Slide 15: H1 highlights
H1 highlights EBIT Revenues (€m) (€m) 25 Y-o-Y +13.4% 90 20 23,2 Y-o-Y 20,4 +8.6% 15 80 85,4 10 70 78,7 5 60 0 H1 2017 H1 2018 50 EBIT margin 26.0% 27.1% 40 30 Net Income (€m) 20 20 10 Y-o-Y 15 +19.0% 0 16,6 H1 2017 H1 2018 10 13,9 5 0 H1 2017 H1 2018 NI margin 17.7% 19.4% 15
Slide 16: Performance by Division
Performance by Division EBIT Revenues (€m) (€m) 23,2 25 Y-o-Y 20,4 +13.4% 90 85,4 20 Y-o-Y Y-o-Y 12,1 +38.4% 78,7 +8.6% 15 8,8 80 10 Y-o-Y Y-o-Y 70 11,7 37,2 +9.0% 5 11,0 -5.3% 60 34,1 0 H1 2017 H1 2018 50 40 Broking Division BPO Division Y-o-Y 30 8.2% 44,6 48,2 20 EBIT margin 10 (percent of revenue
Slide 17: Revenue breakdown
Revenue breakdown Broking Division Revenues BPO Division Revenues (€m) (€m) 50 50 Y-o-Y 48,2 44,6 +8.2% 45 45 7,6 4,0 40 Y-o-Y 37,2 Y-o-Y 40 3,6 Y-o-Y 34,1 +9.0% +9.6% 4,2 +7.1% 35 1,3 35 1,2 3,9 8,9 Y-o-Y 9,0 Y-o-Y 30 -6.0% 30 +6.9% 9,5 8,8 Y-o-Y 25 Y-o-Y 25 7,1 -2.3% +9.8% 20 6,4 20 3,3 Y-o-Y 15 3
Slide 18: Evolution of the Italian residential mortgage market
Evolution of the Italian residential mortgage market • The residential mortgage market is undergoing a progressive acceleration, switching from a contraction in Q1 2018 to an increasingly strong growth starting from Q2 2018. The growth is mainly fueled by an increase of real estate transactions and
Slide 19: Broking Division – Business outlook 1/3
Broking Division – Business outlook 1/3 During H1 2018, the Broking Division shows a good growth of revenues compared to H1 2017, coupled with a strong improvement of operating income, primarily linked to the excellent performance of Mortgage Broking. Contrasting this general positive trend, we high
Slide 20: Broking Division – Business outlook 2/3
Broking Division – Business outlook 2/3 • The announced optimization of online marketing Consumer Loan Broking Revenues Consumer 18 (€m) Loan expenses led to a drop of volumes of brokered loans Broking and associated revenues in a year on year comparison, combined with an increase of the 12 operatin
Slide 21: Broking Division – Business outlook 3/3
Broking Division – Business outlook 3/3 E-Commerce Price Comparison Revenues E-Commerce • The business continues to suffer because of the 18 (€m) Price deterioration of organic traffic, therefore revenues and Comparison operating margin are down year on year. 12 10,7 • In order to counter such effec
Slide 22: BPO Division – Business outlook 1/3
BPO Division – Business outlook 1/3 The revenues of the BPO Division are slightly up in H1 2018, whereas the percentage operating margin drops, while remaining close to our long-term targets. Revenue growth is, however, due only to the recent acquisition of Agenzia Italia S.p.A., while the Division
Slide 23: BPO Division – Business outlook 2/3
BPO Division – Business outlook 2/3 30 Cessione Quinto BPO Revenues • The Business Line remains essentially stable, if (€m) CQ Loan compared to H1 2017. We point out, however, an 25 BPO interesting growth opportunity linked to a new 20 agreement regarding loan underwriting services with Gruppo Medio
Slide 24: BPO Division – Business outlook 3/3
BPO Division – Business outlook 3/3 Asset • The Business Line continues to grow organically, Asset Management BPO Revenues 30 Management (€m) also through the acquisition of new clients, even if BPO 25 there is still a significant concentration of revenues with the main client. In the last months of
Slide 25: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 25
Slide 26: Revenue trends by Division
Revenue trends by Division Group Revenues (€m) Collapse of the Italian Mortgage Market 160 152,8 138,1 140 120,7 120 44% 58% 44% 100 47% 40% 80 71,8 68,3 61% 45% 60 53,4 51,0 46,4 47,9 37% 58% 37,7 38,5 56% 40 40% 56% 66% 61% 60% 45% 53% 21,8 60% 20 63% 58% 42% 60% 40% 40% 34% 39% 55% 42% 0 2006A 20
Slide 27: Revenue Breakdown by Business Line
Revenue Breakdown by Business Line Broking Division Revenues (€m) 90 80 Other Revenues 70 67,2 61,0 3% 57,2 E-Commerce Price Comparison 60 3% 2% 30% 50 Insurance Broking 41,9 28% 36% 40 6% 19% Consumer Loan Broking 31,7 32,2 17% 27,8 25% 25,1 18% 30 22,7 11% 32% 33% 20,5 12% Mortgage Broking 31% 17,
Slide 28: Operating Income by Division
Operating Income by Division EBIT (€m) Collapse of the 39,7 40 Italian Mortgage 35,2 Market 32,0 30,9 30 + 46% 21,9 22,0 Launch of 47% 21,5 Segugio.it 17,6 57% 20 77% 14,5 8,5 78% 84% 36% 10 77% 93% 54% 5,6 53% 67% 3,6 43% 23% 80% 32% 64% 33% 23% 22% 7% 16% 20% 68% 0 2006A 2007A (a) 2008A 2009A 2010
Slide 29: Net Income
Net Income Net income (€m) 30 27,5 24,8 25 23,5 20,9 20 14,8 14,4 15,3 15 9,7 9,9 10 5,2 5 3,6 3,8 0 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A Net income margin (%) 40% 31,9% 30,1% 28,7% 29,1% 30% 25,7% 23,9% 19,5% 18,0% 18,0% 20% 14,5% 9,4% 10% 7,5% 0% 2006A 2007A 2008
Slide 30: Dividend Payout
Dividend Payout Earnings per share, consolidated Dividends per outstanding share (€) (€) 0,80 0,45 0,69 0,40 0,70 0,36 0,37 0,59 0,58 0,35 0,60 0,56 0.30 0,30 0,30 0,50 0,41 0,25 0,40 0,38 0,38 0,21 0,20 0,30 0,25 0.15 0,24 0,15 0,12 0,12 0,12 0,12 0,20 0,09 0,10 0,09 0,09 0,10 0,05 0,00 0,00 2007 2
Slide 31: Appendix
teh Appendix
Slide 32: H1 Profit & Loss
H1 Profit & Loss (€000) H1 2018 H1 2017 % Var. Rev enues 85,408 78,665 8.6% Other income 1,581 1,185 33.4% Capitalization of internal costs 548 513 6.8% Serv ice costs (30,889) (28,779) 7.3% Personnel costs (27,564) (25,096) 9.8% Other operating costs (2,802) (2,565) 9.2% Depreciation and amortizati
Slide 33: Quarterly Profit & Loss
Quarterly Profit & Loss (€000) Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Rev enues 47,638 37,770 40,673 33,457 40,131 Other income 972 609 1,074 667 657 Capitalization of internal costs 346 202 250 186 314 Serv ice costs (16,903) (13,986) (13,909) (12,537) (14,800) Personnel costs (15,512) (12,052) (1
Slide 34: Q2 Profit & Loss
Q2 Profit & Loss (€000) Q2 2018 Q2 2017 % Var. Rev enues 47,638 40,131 18.7% Other income 972 657 47.9% Capitalization of internal costs 346 314 10.2% Serv ice costs (16,903) (14,800) 14.2% Personnel costs (15,512) (12,926) 20.0% Other operating costs (1,536) (1,062) 44.6% Depreciation and amortizat
Slide 35: Q2 highlights
Q2 highlights EBIT Revenues (€m) (€m) 15 Y-o-Y 13,4 50 47,6 10,6 +27.2% Y-o-Y Y-o-Y 10 7,3 +66.8% +18.7% 4,4 40,1 Y-o-Y 40 +20.9% 5 20,1 6,2 6,2 Y-o-Y -0.5% 0 30 16,6 Q2 2017 Q2 2018 20 Broking Division BPO Division Y-o-Y 27,6 +17.1% 10 23,5 EBIT margin (percent of revenues) 0 Q2 2017 Q2 2018 Q2 201
Slide 36: Balance Sheet – Asset Side
Balance Sheet – Asset Side As of June 30, December 31, (€000) Change % 2018 2017 ASSETS I ntangible assets 99,684 49,611 50,073 100.9% Property, plant and equipment 15,970 14,683 1,287 8.8% Associates measured w ith equity method 2,276 1,986 290 14.6% Non-current financial assets held to maturity 3,
Slide 37: Balance Sheet – Liability Side
Balance Sheet – Liability Side As of June 30, December 31, (€000) Change % 2018 2017 LIABILITIES AND SHAREHOLDERS' EQUITY Total equity attributable to the shareholders of the I ssuer 84,230 80,042 4,188 5.2% Minority interests 9,055 8,350 705 8.4% Total shareholders' equity 93,285 88,392 4,893 5.5%
Slide 38: Net Financial Position
Net Financial Position As of June 30, December 31, (€000) Change % 2018 2017 A. Cash and cash equiv alents 89,332 76,569 12,763 16.7% B. Other cash equiv alents - - - N/A C. Financial assets held to maturity or for trading 4,486 920 3,566 387.6% D. Liquidity (A) + (B) + (C) 93,818 77,489 16,329 21.1
Slide 39: 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