Slide 1: Q1 2024 Financial Results
Q1 2024 Financial Results MAY 15TH, 2024
Slide 2: Agenda
01 Business Highlights 02 Financial Results 03 Appendix AGENDA
Slide 3: Business Highlights
Business Highlights Titolo breaker slide Manuela Franchi Group CEO
Slide 4: Q1 2024 Business Highlights
Q1 2024 Business Highlights • Ongoing efforts to deliver on Business Plan are on track • Gross revenues in line with LY (-3.3%) and guidance with positive performance of Italy (+7.5%) and ancillaries (+34.8%) • EBITDA ex NRI stable vs LY1 • Stable AUM (€116.9bn vs 116.4 as of 2023-end) and growing w
Slide 5: Guidance for 2024: progress update
Guidance for 2024: progress update 2024 Q1 2024 GUIDANCE Gross revenues1 €97m €480-490m • In line with guidance and seasonality • GBV in line with guidance Gross Book Value ~€117bn ~€115bn • Collection rate still not reflecting higher Collection Rate (%) ~4.4% ~5.1% performance from new operating mo
Slide 6: Already delivering on the pillars of our new 2024-2026 business plan
Already delivering on the pillars of our new 2024-2026 business plan... 1 Enhanced client-oriented • Hiring of senior management for Product and Business Development approach • New organization already effective from 1Q • Share of non-NPL business increasing to 34% 2 Growth and diversification beyon
Slide 7: 2026 targets
2026 targets 2026 Q1 COMMENTS TARGETS 2024 Market Share: keeping our market share Market share (%) stable vs competitors, coping in our 15-20% 15% In Southern Europe profitability in adverse market conditions already visible from Q1 Gross revenues and share of NPL: >30% Gross revenues contribution i
Slide 8: Outlook for NPE production
Outlook for NPE production NPE ratio reduction Cost of risk 35.2% 132 112 108 6.70% 91 84 5.00% 76 3.30% 63 61 3.20% 2.80% 48 47 48 38 2.40% gen-19 gen-20 gen-21 gen-22 gen-23 gen-19 gen-20 gen-21 gen-22 gen-23 • Ongoing reduction of legacy NPL stock between 2019-2021 thanks to servicer contributing
Slide 9: GBV intake
GBV intake GBV onboarded as of March 2024 (€m) Potential pipeline (€bn) Various Various 38 €553m €249m 4 Forward flows €313m 2 723 1,002 31 217 1,838 21 313 1,115 516 37 11 Committed Omega portfolios Mandates Sabadell Cooperative Forward onboarded Gemini flows Other New Total banks Potential pipelin
Slide 10: Partnership with Cardo AI
Partnership with Cardo AI doValue users with Cardo AI into innovative Stage 2 credit management approach Italian Stage 2 loan volumes are increasing Impacts of Stage 2 credit management on banks Stage 2 loans stock per ticket size in Italy as of 2023 (GBV €m) Stage 2 loans features Credit management
Slide 11: Other updates
Other updates • Payment of €22.7m received from the Madrid Court in April • Action pursued by Altamira Asset Management Holding for annulment of arbitration still ongoing • Court of Madrid to issue final verdict in May • Positive impact on net financial position • Positive impact on reported net inc
Slide 12: Financial Results
Financial Results Titolo breaker slide Davide Soffietti Group CFO
Slide 13: Financials at a glance
Financials at a glance Q1 Q1 ∆% COMMENTS 2024 2023 YoY ITEMS Inflows from existing clients under FF agreements in place worth €0.7bn, GBV €117bn €120bn -2.7% increasing in Italy on YoY basis. New inflows onboarded worth €1,1bn, mainly in Hellenic Region and marking +7.5% YoY in Spain Lower collectio
Slide 14: GBV dynamics
GBV dynamics GBV evolution COMMENTS GBV at €116.9bn vs. EoP 2023 €116.4bn, driven by: • Inflows from existing clients €0.7bn. 22% lower +0.5% YoY for lower NPE formations • Inflows from new clients €1.1bn: €0.6bn in the Hellenic Region, mainly related to portfolio 117.9 originated from Attica; €0.3b
Slide 15: Gross Revenues
Gross Revenues Gross Revenues (€m) (*) COMMENTS • Group • Gross revenues broadly stable despite lower collection in all regions thanks to higher ancillaries in Italy -3.3% • Hellenic Region • Overall drop in revenues by 6.3% YoY, due lo lower disposals vs 1Q23 % of Total 100 • Lower NPL revenues by
Slide 16: Operating Expenses
Operating Expenses Operating Expenses ex NRIs (€m) (*) COMMENTS • Total cost • Operating costs broadly stable despite positive effect of provision release for former % of Gross CEO variable compensation in 2023 (€5.9m) and wage inflation 60% 63% Revenues • Overall cost discipline across the group wi
Slide 17: EBITDA ex NRIs
EBITDA ex NRIs EBITDA ex NRIs (€m) (*) COMMENTS • Group • EBITDA declining by 20.0% to €25m in Q1 2024 but stable when excluding positive -20.0% effect from release of provisions following CEO resignation in 1Q23 -1.3% (**) • NRI components around €35k incl. Variable CEO compensation in 2023 • Helle
Slide 18: Regional Performance
Regional Performance Q1 2024 Hellenic Group Region Italy Spain €37bn €69bn €10bn GBV €117bn 32% of total 59% of total 9% of total €0.4bn €0.3bn €0.2bn Collections €1.0bn 43% of total 33% of total 24% of total TMR 4.4% 6.4% 2.4% 10.8% €48m €37m €12m Gross Revenues €97m 50% of Total 38% of Total 12% o
Slide 19: Attributable Net Income
Attributable Net Income Attributable Net Income ex NRIs (€m) (*) COMMENTS Net Income • Net Income ex NRI lower vs. LY by €3.9m, due to delta at EBITDA level. Negative net €(1.8) €(7.1) Reported income due to strong seasonality of revenues coupled with linear evolution of D&A (- 13.5m) and financial
Slide 20: Cash Flow
Cash Flow COMMENTS Q1 Q1 €m 2023 2024 • Operating Cash Flow, equal to €3.9m, lower than LY (€22.1m) mainly due to: EBITDA €30.1m €24.9m • Weaker performance of Ebitda respect to Capex performed 93% vs 95% of previous year with Capex €(1.4)m €(1.8)m • Change in NWC linked to the collection done April
Slide 21: Financial Structure
Financial Structure Net Debt (€m) COMMENTS • Group Leverage • Increase in leverage influenced by payment of Earn-out (€22.3m) and interest on Bonds (€11.6m) 2.7x 3.0x 2.9x 2.8x • Net leverage under control despite extraordinary payments for Earn-Out • Significant cash-in in April related to Arbitrat
Slide 22: Q&A
Q&A 22
Slide 23: Appendix
Appendix Titolo breaker slide
Slide 24: Condensed Income Statement
Condensed Income Statement (€/000) 3/31/2024 3/31/2023 (*) Change € Change % Servicing Revenues: 83,916 87,917 (4,001) (4.6)% o/w: NPE revenues 70,902 76,653 (5,751) (7.5)% o/w: REO revenues 13,014 11,264 1,750 15.5% Co-investment revenues 349 377 (28) (7.4)% Ancillary and other revenues 14,777 13,1
Slide 25: Condensed Balance Sheet
Condensed Balance Sheet (€/000) 3/31/2024 12/31/2023 Change € Change % Cash and liquid securities 66,007 112,376 (46,369) (41.3)% Financial assets 45,490 46,167 (677) (1.5)% Property, plant and equipment 47,821 48,678 (857) (1.8)% Intangible assets 465,848 473,784 (7,936) (1.7)% Tax assets 94,625 99
Slide 26: Condensed Cash Flow
Condensed Cash Flow (€/000) 3/31/2024 3/31/2023 12/31/2023 EBITDA 24,917 30,117 175,345 Capex (1,816) (1,449) (21,361) EBITDA-Capex 23,101 28,668 153,984 as % of EBITDA 93% 95% 88% Adjustment for accrual on share-based incentive system payments (1,061) 678 (5,853) Changes in Net Working Capital (NWC
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 This disclaimer applies to all documents and information provided herein and to any verbal or written comments of person presenting them by doValue S.pA. and its affiliates (collectively, the “Company”) or any person on behalf of the Company, and any question and answer session that follo
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