Moltiply Group S.p.a. · MIL:MOL
Moltiply — Gruppo MutuiOnline — H1 2019 Earnings Presentation
41 slides from Moltiply's earnings presentation, Sep 5, 2019
Slide 1: First Half 2019 Results
First Half 2019 Results September 5th, 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 September 4th, 2019 * 2018 average 8
Slide 9: Major milestones
Major milestones START-UP GROWTH RESTRUCTURING NEW GROWTH € 185.1M € 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 2
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, 2019* Treasury shares 6.04% Alma Ventures** 32.11% Free Float 30.62% 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 Sept 3rd, 2019 Number of Shares 40,000,000 Treasury Shares 2,416,230 Outstanding Shares 37,583,770 Price per Share € 15.18 Market Capitalisation € 570.5 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: H1 highlights
H1 highlights EBIT Revenues (€m) (€m) 30 Y-o-Y 120 +10.7% 20 25.6 23.2 Y-o-Y 100 +26.4% 108.0 10 80 85.4 0 H1 2018 H1 2019 60 EBIT margin 27.1% 23.7% 40 Net Income (€m) 20 30 20 Y-o-Y 0 +22.9% H1 2018 H1 2019 20.4 16.6 10 0 H1 2018 H1 2019 NI margin 19.4% 18.9% 15
Slide 16: Performance by Division
Performance by Division EBIT Revenues (€m) (€m) 30 25.6 23.2 Y-o-Y 120 +10.7% Y-o-Y 108.0 20 12.3 +1.3% 12.1 Y-o-Y 100 +26.4% Y-o-Y 10 Y-o-Y 85.4 +11.0% 11.0 13.4 +20.9% 41.3 80 0 H1 2018 H1 2019 37.2 60 Broking Division BPO Division 40 Y-o-Y 66.7 +38.3% 20 48.2 EBIT margin (percent of revenues) 0 H
Slide 17: Revenue breakdown
Revenue breakdown Broking Division Revenues BPO Division Revenues (€m) (€m) 70 70 66.7 Y-o-Y 0.6 +395.0% 60 60 Y-o-Y Y-o-Y +38.3% 15.5 +105.4% 50 50 48.2 Y-o-Y 0.1 4.7 +11.3% Y-o-Y 41.3 7.6 4.5 Y-o-Y 40 37.2 +11.0% 1.2 Y-o-Y -6.7% 40 +16.2% 1.3 4.2 9.5 Y-o-Y 10.4 Y-o-Y +16.7% 3.9 +7.0% 30 8.9 30 Y-o
Slide 18: Evolution of the Italian residential mortgage market
Evolution of the Italian residential mortgage market • The year-on-year contraction of the residential mortgage market already apparent in Q1 2019 became more pronounced in Q2 2019, with a significant drop of purchase mortgages and a strong decline of remortgages. • Data from Assofin, an industry as
Slide 19: Broking Division – Business outlook 1/3
Broking Division – Business outlook 1/3 • The Broking Division shows, as expected, a progressive slowdown in H1 2019, with a year-on-year drop in revenues of Mortgage Broking and Consumer Loan Broking starting from Q2 2019, while revenues of Insurance Broking and E-Commerce Price Comparison increase
Slide 20: Broking Division – Business outlook 2/3
Broking Division – Business outlook 2/3 Consumer • The lower attractiveness of the consumer loan Consumer Loan Broking Revenues (€m) Loan product offering compared to the reference 25 Broking market led to a decline in revenues and operating income of Consumer Loan Broking 20 in Q2 2019. 15 • An act
Slide 21: Broking Division – Business outlook 3/3
Broking Division – Business outlook 3/3 • The trend of the E-Commerce Price E-Commerce Price Comparison Revenues E-Commerce (€m) Price Comparison is gradually improving, with an 25 Comparison acceleration in revenues due to the increase in marketing expenses and the fine tuning of 20 pricing. 15 • F
Slide 22: BPO Division – Business outlook 1/4
BPO Division – Business outlook 1/4 • The turnover of the BPO Division grew strongly in H1 2019, and percentage margins remain within the long-term target range, although they decreased compared to H1 2018, partially due to the increase of amortization linked to the acquisition of Agenzia Italia S.p
Slide 23: BPO Division – Business outlook 2/4
BPO Division – Business outlook 2/4 • The performance of the Business Line (from which figures Mortgage BPO Revenues Mortgage relating to real estate valuation services have been (€m) BPO separated and reported separately from H1 2019) shows 25 23.8 Y-o-Y a double-digit increase in revenues, mainly
Slide 24: BPO Division – Business outlook 3/4
BPO Division – Business outlook 3/4 • The Business Line shows moderate growth in H1 CQ Loan BPO Revenues CQ Loan (€m) BPO 2019 compared to H1 2018, thanks to the 25 activation of the contract with Banca 20 Mediolanum and the growth of some existing customers. 15 • This trend of slight growth is also
Slide 25: BPO Division – Business outlook 4/4
BPO Division – Business outlook 4/4 • The Business Line dedicated to investment Investment Services BPO Revenues Investment (€m) services shows an organic double-digit growth Services BPO linked both to the increase in volumes managed 25 for the main client and to the acquisition of new clients for
Slide 26: Agenda
Agenda Business Description 1 Share Information 2 Current Trading and Outlook 3 Historical Performance 4 26
Slide 27: 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 28: Revenue Breakdown by Business Line
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 29: Revenue Breakdown by Business Line
Revenue Breakdown by Business Line 120 BPO Division Revenues (€m) 106.0 Other revenues 100 21% Leasing/Rental BPO 85.6 Investment Services BPO 80 77.1 10% Insurance BPO 8% 11% 8% CQ Loan BPO 9% 63.6 8% Real Estate Services BPO 60 10% 20% 17% Mortgage BPO 61% 11% 21% 45% 43.2 4% 40 12% 28% 29.9 30.5
Slide 30: 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 31: 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 32: 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 33: Appendix
teh Appendix
Slide 34: H1 Profit & Loss
H1 Profit & Loss (€000) H1 2019 H1 2018 % Var. Revenues 107,976 85,408 26.4% Other income 1,886 1,581 19.3% Capitalization of internal costs 1,092 548 99.3% Service costs (42,274) (30,889) 36.9% Personnel costs (34,220) (27,564) 24.1% Other operating costs (3,312) (2,802) 18.2% Depreciation and amor
Slide 35: Quarterly Profit & Loss
Quarterly Profit & Loss (€000) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Revenues 54,358 53,618 55,830 43,885 47,638 Other income 980 906 1,302 1,196 972 Capitalization of internal costs 927 165 384 158 346 Service costs (20,856) (21,418) (21,740) (17,527) (16,903) Personnel costs (17,723) (16,497) (1
Slide 36: Q2 Profit & Loss
Q2 Profit & Loss (€000) Q2 2019 Q2 2018 % Var. Revenues 54,358 47,638 14.1% Other income 980 972 0.8% Capitalization of internal costs 927 346 167.9% Service costs (20,856) (16,903) 23.4% Personnel costs (17,723) (15,512) 14.3% Other operating costs (1,552) (1,536) 1.0% Depreciation and amortization
Slide 37: Q2 highlights
Q2 highlights EBIT Revenues (€m) (€m) 15 13.4 Y-o-Y 13.3 -1.4% 60 Y-o-Y 54.4 10 7.3 6.3 -12.8% Y-o-Y 50 47.6 +14.1% Y-o-Y +2.0% 5 Y-o-Y 20.5 6.2 6.9 +12.0% 40 0 20.1 Q2 2018 Q2 2019 30 Broking Division BPO Division 20 Y-o-Y 33.9 +22.9% 27.6 10 EBIT margin (percent of revenues) 0 Q2 2018 Q2 2019 Q2 2
Slide 38: Balance Sheet – Asset Side
Balance Sheet – Asset Side As of June 30, December 31, (€000) Change % 2019 2018 ASSETS Intangible assets 109,195 98,641 10,554 10.7% Property, plant and equipment 23,010 16,995 6,015 35.4% Associates measured with equity method 1,731 1,554 177 11.4% Non-current financial assets at fair value 50,677
Slide 39: Balance Sheet – Liability Side
Balance Sheet – Liability Side As of June 30, December 31, (€000) Change % 2019 2018 LIABILITIES AND SHAREHOLDERS' EQUITY Total equity attributable to the shareholders of the Issuer 90,401 81,792 8,609 10.5% Minority interests 1,569 1,154 415 36.0% Total shareholders' equity 91,970 82,946 9,024 10.9
Slide 40: Net Financial Position
Net Financial Position As of June 30, December 31, (€000) Change % 2019 2018 A. Cash and cash equivalents 24,756 67,876 (43,120) -63.5% B. Other cash equivalents - - - N/A C. Financial assets held to maturity or for trading 3,030 3,395 (365) -10.8% D. Liquidity (A) + (B) + (C) 27,786 71,271 (43,485)
Slide 41: 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