Moltiply Group S.p.a. · MIL:MOL
Moltiply — Gruppo MutuiOnline — H1 2020 Earnings Presentation
41 slides from Moltiply's earnings presentation, Sep 7, 2020
Slide 1: First Half 2020 Results
First Half 2020 Results September 7th, 2020
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 Mortgage lenders (in lenders’ name) • Technical-Legal Analysis BPO • Centralized packaging • Anti-fraud checks • CRM activities for origination • Notary co
Slide 8: Group structure
Group structure Headcount* 1,844 FTE Group structure as of September 7th, 2020 * 2019 average 8
Slide 9: Major milestones
Major milestones START-UP GROWTH RESTRUCTURING NEW GROWTH € 219,9M € 185,1M Collapse of Italian mortgage € 152,8M market € 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 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, 2020* Treasury shares 5,91% Alma Ventures** 32,10% Free Float 35,13% 5,05% 21,81% Kayne Anderson Rudnick Investmentaktiengesellschaft für Investment Management LLC langfristige Investoren TGV * Share ownership as registered in last S
Slide 13: Share Performance since IPO
Share Performance since IPO KEY STOCK DATA as of Sept. 4th, 2020 Number of Shares 40,000,000 Treasury Shares 2,365,639 Outstanding Shares 37,634,361 Price per Share € 24.10 Market Capitalisation € 907.0 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 +7.6% 140 25,6 27,6 20 120 Y-o-Y +11.2% 10 120,1 100 108,0 0 H1 2019 H1 2020 80 EBIT margin 23.7% 23.0% 60 Net Income 40 (€m) 30 20 Y-o-Y 0 20 +0.1% H1 2019 H1 2020 20,4 20,4 10 0 H1 2019 H1 2020 NI margin 18.9% 17.0% 15
Slide 16: Performance by Division
Performance by Division EBIT Revenues (€m) (€m) 27,6 30 25,6 Y-o-Y +7.6% 140 Y-o-Y 20 12,3 +47.3% 120,1 18,1 120 Y-o-Y 108,0 +11.2% 10 Y-o-Y +22.7% 13,4 Y-o-Y 100 9,5 -28.9% 50,6 0 41,3 H1 2019 H1 2020 80 60 Broking Division BPO Division Y-o-Y 40 +4.2% 66,7 69,5 20 EBIT margin (percent of revenues)
Slide 17: Revenue breakdown
Revenue breakdown Broking Division Revenues BPO Division Revenues (€m) (€m) 80 80 Y-o-Y 69,5 70 70 66,7 +4.2% 0,3 0,6 60 60 14,2 15,5 50,6 4,8 50 Y-o-Y 1,2 50 4,7 1,8 41,3 +22.7% 2,6 40 1,2 16,7 40 12,7 11,3 10,4 30 30 8,8 8,1 9,8 9,0 20 3,2 2,1 20 22,9 26,8 10 18,3 20,8 10 0 0 H1 2019 H1 2020 H1 20
Slide 18: Evolution of the Italian residential mortgage market
Evolution of the Italian residential mortgage market • After a drastic contraction in the central months of lockdown (March and April), the residential mortgage market is once again growing year on year, thanks to the strong growth of remortgages, powered by extremely low long-term interest rates, w
Slide 19: Broking Division – Business outlook 1/3
Broking Division – Business outlook 1/3 • The Broking Division performed above expectations in Q2 2020, due to the strong growth of E-Commerce Price Comparison during the lockdown period and immediately thereafter and the rapid recovery of Mortgage Broking and Insurance Broking after the end of the
Slide 20: Broking Division – Business outlook 2/3
Broking Division – Business outlook 2/3 Consumer • Consumer Loan Broking, after a significant drop in the Consumer Loan Broking Revenues lockdown period, enjoyed only a modest recovery, (€m) Loan 30 mainly due to the current great prudence of financial Broking institutions in the origination of new
Slide 21: Broking Division – Business outlook 3/3
Broking Division – Business outlook 3/3 • The E-Commerce Price Comparison business recorded E-Commerce Price Comparison Revenues E-Commerce (€m) Price a very strong performance in the months of lockdown and in the period immediately following, both due to 30 Comparison increased demand for online pu
Slide 22: BPO Division – Business outlook 1/4
BPO Division – Business outlook 1/4 • The turnover of the BPO Division has proved resilient during the crisis created by the pandemic emergency, holding just above that of the same period last year. • At the same time, there is a significant weakening in the Division's operating margins. Focusing th
Slide 23: BPO Division – Business outlook 2/4
BPO Division – Business outlook 2/4 • The performance of the Business Line exceeded Mortgage BPO Revenues Mortgage expectations with double-digit turnover growth, (€m) BPO linked, especially in Q2 2020, to para-notary services, 30 Y-o-Y 26,8 whose significant surge did more than offset the +17.0% 25
Slide 24: BPO Division – Business outlook 3/4
BPO Division – Business outlook 3/4 • The Business Line showed significant growth rates in sales, Loans BPO Revenues Loans especially in Q2 2020, while improving operating margins. The (€m) BPO growth in turnover is mainly due to the extension of the 30 outsourcing offering range: outsourced underwr
Slide 25: BPO Division – Business outlook 4/4
BPO Division – Business outlook 4/4 • The Business Line dedicated to investment services is Investment Services BPO Revenues Investment substantially stable. During the first phase of the (€m) Services BPO emergency, we experienced an extraordinary 30 increase in transaction volumes linked to the re
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 240 219,9 200 185,1 39% 160 58% 152,8 138,1 43% 120,7 40% 120 44% 61% 44% 45% 47% 80 71,8 68,3 53,4 61% 46,4 47,9 51,0 37% 57% 37,7 58% 38,5 40 66% 40% 56% 56% 60% 61% 21,8 45% 53% 60% 63% 58% 42% 60% 40% 40% 34%
Slide 28: Revenue Breakdown by Business Line (Broking)
Revenue Breakdown by Business Line 90 Broking Division Revenues 86,8 (€m) 3% 79,1 80 Other Revenues 3% E-Commerce Price Comparison 27% 70 Insurance Broking 67,2 24% Consumer Loan Broking 3% 61,0 Mortgage Broking 60 57,2 3% 2% 30% 19% 50 18% 28% 36% 41,9 6% 40 61% 6% 8% 45% 19% 31,7 32,2 25% 17% 18%
Slide 29: Revenue Breakdown by Business Line (BPO)
Revenue Breakdown by Business Line 140 BPO Division Revenues 133,1 (€m) 120 24% Other revenues 106,0 Leasing/Rental BPO 100 Investment Services BPO 21% 7% Insurance BPO 85,6 6% Loans BPO 80 77,1 10% 8% Real Estate Services BPO* 11% 8% 14% 9% Mortgage BPO 63,6 8% 61% 20% 60 45% 10% 17% 11% 21% 13% 43
Slide 30: Operating Income by Division
Operating Income by Division EBIT (€m)60 Collapse of the Italian Mortgage 50,8 Market 46,1 + 39,7 40 35,2 30,9 Launch of 32,0 52% 51% Segugio.it 46% 21,9 21,5 22,0 47% 17,6 57% 20 77% 14,5 8,5 78% 93% 84% 36% 49% 48% 77% 5,6 53% 54% 3,6 43% 67% 23% 80% 32% 64% 0 33% 23% 22% 7% 16% 20% 68% 2006 2007
Slide 31: Net Income
Net Income Net income (€m) 50 40,6 40 34,4 30 27,5 23,5 24,8 20.9 20 14.8 15.3 14.4 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 2019 Net income margin (%) 40% 31,9% 30,1% 28,7% 29,1% 30% 25,7% 23,9% 19,5% 18,0% 18,0% 18,6% 18,5% 20% 14,5% 9,4% 10% 7,5% 0
Slide 32: Dividend Payout
Dividend Payout Earnings per share, consolidated Dividends per outstanding share (€) (€) 1,20 1,20 1,07 1,00 1,00 0,89 0,80 0,80 0,69 0,59 0,58 0,60 0,56 0,60 0,41 0,38 0,38 0,36 0,37 0,40 0,40 0.30 0,30 0,30 0,25 0,24 0,21 0,20 0,20 0.15 0,12 0,12 0,12 0,12 0,12 0,09 0,09 0,09 0,00 0,00 2007 2008 2
Slide 33: Appendix
Teh Appendix
Slide 34: H1 Profit & Loss
H1 Profit & Loss (€000) H1 2020 H1 2019 % Var. Revenues 120,096 107,976 11.2% Other income 1,909 1,886 1.2% Capitalization of internal costs 1,935 1,092 77.2% Service costs (49,329) (42,274) 16.7% Personnel costs (35,664) (34,220) 4.2% Other operating costs (4,661) (3,312) 40.7% Depreciation and amo
Slide 35: Quarterly Profit & Loss
Quarterly Profit & Loss (€000) Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Revenues 61,954 58,142 63,332 48,627 54,358 Other income 1,069 840 1,145 1,179 980 Capitalization of internal costs 1,166 769 585 540 927 Service costs (24,389) (24,940) (24,718) (18,947) (20,856) Personnel costs (17,971) (17,693
Slide 36: Q2 Profit & Loss
Q2 Profit & Loss (€000) Q2 2020 Q2 2019 % Var. Revenues 61,954 54,358 14.0% Other income 1,069 980 9.1% Capitalization of internal costs 1,166 927 25.8% Service costs (24,389) (20,856) 16.9% Personnel costs (17,971) (17,723) 1.4% Other operating costs (2,150) (1,552) 38.5% Depreciation and amortizat
Slide 37: Q2 highlights
Q2 highlights EBIT Revenues (€m) (€m) 20 Y-o-Y 16,4 70 15 13,3 +23.8% Y-o-Y Y-o-Y 62,0 +79.2% 10 6,3 11,3 60 +14.0% 54,4 5 Y-o-Y 50 Y-o-Y 6,9 5,1 -26.7% 27,7 +1.0% 0 20,5 Q2 2019 Q2 2020 40 30 Broking Division BPO Division Y-o-Y 20 +35.4% 33,9 34,2 10 EBIT margin (percent of revenues) 0 Q2 2019 Q2 2
Slide 38: Balance Sheet – Asset Side
Balance Sheet – Asset Side As of June 31, December 31, (€000) Change % 2020 2019 ASSETS Intangible assets 105,192 107,282 (2,090) -1.9% Property, plant and equipment 25,409 25,512 (103) -0.4% Associates measured with equity method 1,733 1,786 (53) -3.0% Non-current financial assets at fair value 42,
Slide 39: Balance Sheet – Liability Side
Balance Sheet – Liability Side As of June 30, December 31, (€000) Change % 2020 2019 LIABILITIES AND SHAREHOLDERS' EQUITY Total equity attributable to the shareholders of the Issuer 115,715 112,571 3,144 2.8% Minority interest 1,862 1,627 235 14.4% Total shareholders' equity 117,577 114,198 3,379 3.
Slide 40: Net Financial Position
Net Financial Position As of June 30, December 31, (€000) Change % 2020 2019 A. Cash and cash equivalents 82,389 34,654 47,735 137.7% B. Other cash equivalents - - - N/A C. Financial assets held to maturity or for trading 1,747 2,184 (437) -20.0% D. Liquidity (A) + (B) + (C) 84,136 36,838 47,298 128
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