Dovalue

Earnings Release • Mar 21, 2024

Informazione Regolamentata n. 1967-35-2024		Data/Ora Inizio Diffusione 21 Marzo 2024 08:15:16	Euronext Star Milan
Societa'	:	DOVALUE
Identificativo Informazione Regolamentata	:	187731
Utenza - Referente	:	DOVALUEN06 - Della Seta
Tipologia	:	2.2
Data/Ora Ricezione	:	21 Marzo 2024 08:15:16
Data/Ora Inizio Diffusione	:	21 Marzo 2024 08:15:16
Oggetto	:	Approval of Draft Financial Statements for 2023 and other resolutions by the BoD
Testo del comunicato

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PRESS RELEASE

APPROVAL OF DRAFT FINANCIAL STATEMENTS FOR 2023 AND OTHER RESOLUTIONS

€485.7 MILLION OF GROSS REVENUES

€178.7 MILLION OF EBITDA EX NRIs

FINANCIAL LEVERAGE AT 2.7x

€11 BILLION OF NEW GBV IN 2023

NEW BUSINESS PLAN TO BE PRESENTED TODAY

Income Statement

• Gross Revenues at €485.7 million (1) (-13.0% vs 2022, or -4.6% excluding Sareb)
• Net Revenues at €443.2 million (-11.4% vs 2022, or -4.4% excluding Sareb)
• Control of Operating Expenses ex NRI (-12.7% vs 2022) gaining +0.7 p.p. on Gross Revenues
• EBITDA ex NRIs at €178.7 million (-11.4% vs 2022, or -3.9% excluding Sareb) in line with guidance
• EBITDA margin ex NRIs at 37.2% (+1.1 p.p. vs 2022)
• Good momentum in Q4 2023 with EBITDA ex NRI at +27.2%
• Attributable Net Income ex NRIs equal to €1.8 million (vs €50.6 million in 2022) affected by one-off impairments and lower EBITDA in line with what has been communicated in January

Collections and Gross Book Value (GBV)

• Approx. €10.6 billion of GBV onboarded and/or secured in 2023, notwithstanding challenging markets
• Collection Rate for 2023 at 4.6% (0.5 p.p. increase vs 2022 and 0.1 p.p. increase vs. September 2023)
• Collections in 2023 at €4.9 billion (-10.0% compared to 2022, or +5.1% excluding Sareb)
• Despite a challenging macro scenario, GBV and collections are holding up
• Normal dynamic in collections, write-offs and disposals reducing the GBV by €13.8 billion
• GBV as of December 31 st, 2023, at €116.4 billion (-3.4% year on year)
• €1.7 billion of GBV committed and in course of finalization

Balance Sheet and Cash Flow

• Conservative financial structure with moderate leverage and no refinancing needs before August 2025
• Net Debt at €475.7 million as of December 31st, 2023 (€429.9 million as of December 31st, 2022)
• Leverage at 2.7x as of December 31st , 2023 (vs 2.1x as of December 31st, 2022)
• Strong cash position at €112.4 million and €107m of undrawn committed lines as of December 31st, 2023
• Capex at €21.4 million for 2023
• Operating cash flow at €79.2 million, similar to 2022 levels, despite decrease in EBITDA
• Free cash flow before dividends and equity investments at €28.2m (double 2022, despite lower EBITDA)

⁽¹⁾ Including country Portugal, classified as NRI in 2023 due to the ongoing sale process of 100% of doValue Portugal to be completed by H1 2024: Gross Revenues excluding Portugal are equal to €480.9m

Outlook for 2024

• Short to medium term pipeline of servicing mandates totalling €40 billion in doValue markets
• Completion of new primary deals pipeline may slow due to banks' sound balance sheets reducing urgency
• doValue ready to be sound and profitable in new environment and lay the foundation for new growth path
• 2024 to be a year of transformation, cost rationalization and investments to prepare for subsequent growth in 2025 and 2026

CMD on March 21st, 2024

• doValue will hold today a capital market day to present its new 2024-2026 business plan

Rome, March 21st, 2024 – The Board of Directors of doValue S.p.A. (the "Company", the "Group" or "doValue") has approved today the Draft Financial Statements for the year 2023, which will be submitted to the approval of the Shareholders' Meeting, and the Consolidated Financial Report for the year which closed on December 31st, 2023.

Main Consolidated Results and KPIs

Income Statement and Other Data	2023	2022 (2)	Delta
Collections	€4,947m	€5,495m	-10.0%
Collection Rate	4.6%	4.1%	-0.5 p.p.
Gross Revenues	€485.7m	€558.2m	-13.0%
Net Revenues	€443.2m	€500.4m	-11.4%
Operating Expenses ex NRI	€260.9m	€298.7m	-12.7%
EBITDA including non-recurring items	€175.3m	€198.7m	-11.8%
EBITDA excluding non-recurring items	€178.7m	€201.7m	-11.4%
EBITDA margin excluding non-recurring items	37.2%	36.1%	+1.1 p.p.
Net Income including non-recurring items	-€17.8m	€16.5m	<100.0%
Net Income excluding non-recurring items	€1.8m	€50.6m	-96.4%
Capex	€21.4m	€30.8m	€9.5m

Balance Sheet and Other Data	31-Dec-23	31-Dec-22	Delta
Gross Book Value	€116,355m	€120,478m	-3.4%
Net Debt	€475.7m	€429.9m	+10.6%
Financial Leverage (Net Debt / EBITDA ex NRIs)	2.7x	2.1x	+0.5x

⁽²⁾ Including country Portugal, classified as NRI in 2023 due to the ongoing sale process of 100% of doValue Portugal to be completed by H1 2024: in FY 2023, Gross Revenues excluding Portugal are equal to €480.9m and Net Revenues are equal to €439.6m

Gross Book Value

Starting from the beginning of 2023, our Group has remarkably won around €6.3 billion in new contracts, with €1 billion from Italy, €4.5 billion from the Hellenic Region, and €0.8 billion from Iberia. Alongside, we have received €3.4 billion in forward flows this year, plus an extra €0.9 billion in contracts signed and pending onboarding. Altogether, these achievements add up to an additional GBV of €10.6 billion. Highlighting our ability to secure significant mandates in a challenging environment, this accomplishment underscores our sustained success and strategic growth, surpassing the notion of merely maintaining performance levels comparable to previous years.

This achievement is particularly impressive, given the deferment of several major transactions in the Hellenic Region and a challenging environment for new primary transactions in Italy and Spain. Our enduring relationships with professional investors and a proven track record have enabled doValue to uphold a stable market presence in Southern Europe's highly competitive landscape.

Notably, the strategic reorganization of doValue Spain — following the offboarding of Sareb — has resulted in a more agile and business development-oriented operation. This new structure has facilitated the addition of 15 new contracts, enhancing our diversification across client segments and asset classes. In the Hellenic Region, despite delays in substantial primary transactions, doValue has successfully captured over €1 billion in new GBV from secondary transactions, effectively reclaiming portfolios previously disposed of by clients.

As of December 31st, 2023, our GBV stood at €116.4 billion, reflecting a modest 3.4% decrease from the €120.5 billion recorded at the end of 2022. This figure is attributed to €9.7 billion in newly onboarded GBV, €4.9 billion in collections, €4.5 billion in write-offs, and €4.4 billion in client disposals, largely offset by indemnity fees.

With an average residual life exceeding 15 years, the GBV positions doValue to benefit from a predictable revenue stream derived from long-term contracts with over 100 legal entities.

Income Statement

Collections in 2023 stood at €4.9 billion (a decline of 10.0% compared to the €5.5 billion recorded in 2022, or a growth of 5.1% excluding Sareb). The trajectory of the Collections reflects the offboarding of Sareb, partially mitigated by a mix effect driven by new mandates (higher GBV in the Hellenic Region, moving from 30.5% of total as of December 31 st , 2023, to 32.0% of total as of December 31st , 2023, and lower vintage GBV which commands a higher Collection Rate vs Group average).

The Collection Rate is equal to 4.6% for 2023, an increase of 0.5 p.p. vs the level of December 2022. The Collection Rate in Italy increased by 0.01 p.p. in the last twelve months, in the Hellenic Region increased by 0.9 p.p. and in Iberia increased by 1.8 p.p.

In 2023, doValue has recorded Gross Revenues for €485.7 million, a decline of 13.0% compared to the €558.2 million recorded in 2022 (or a decline of 4.6% excluding Sareb).

Servicing Revenues, equal to €419.9 million (€510.2 million in 2022), show a decline of 17.7%, mainly driven by negative performance of Iberia (decline of 43.9%, mainly due to the Sareb portfolio off-boarding) as well as by the slower activity in Italy (decline of 17.3%), and lower revenues in Greece (decline of 4.9%, all attributable to lower disposal fees vs. 2022 which benefited from Mexico Transaction).

Revenues from Co-investments are equal to €1.3 million (whilst they were equal to €1.5 million in 2022).

The contribution of Revenues from Ancillary Products is €64.6 million, a 38.6% increase compared to the €46.6 million level achieved in 2022. More broadly, these revenues include various services provided by the Group (data services, due diligence services, master and structuring services, legal activities, real estate services and advisory services), primarily in the Italian and Greek market.

Outsourcing fees have decrease both in absolute terms (by 26.4%) and as a percentage of Gross Revenues (from 10.4% in 2022 to 8.8% in 2023) mostly for the insourcing of some business processes.

Net Revenues, equal to €443.2 million, have declined by 11.4% compared to €500.4 million in 2022.

Operating Expenses ex NRI, equal to €260.9 million for 2023 (€298.7 million in 2022) have declined by 12.7% year on year and are slightly higher as a percentage of Gross Revenues at 54.2% (vs 53.5% in 2022). The decline in Operating Expenses in absolute terms of €37.8 million is due to lower HR, SG&A and Real Estate expenses and IT costs, with saving and cost flexibility across all the categories.

EBITDA excluding non-recurring items declined by 11.4% to €178.7 million (from €201.7 million in 2022), with an EBITDA margin of 37.2% (+1.1 p.p. vs 2022). Excluding Sareb, EBITDA excluding non-recurring items declined by 3.9% year on year.

Including non-recurring items, EBITDA stood at €175.3 million, recording a decline of 11.8% compared to 2022, when it was €198.7 million. Non-recurring items above the EBITDA mainly include charges related to consultancy M&A projects for €3.4 million in 2023.

Net Income including non-recurring items stands at -€17.8 million, compared to €16.5 million in 2022. The decline is primarily related to lower EBITDA, higher D&As and net provisions vs 2022 mainly connected to the impairment on Spanish contracts, as well as lower result of asset FV and higher taxes.

Excluding non-recurring items, Net Income stands at €1.8 million, compared to €50.6 million in 2022. The nonrecurring items included below the EBITDA for 2023 mainly refer to provision for downsizing and interest charges for the arbitration with Apollo for tax claim in Spain.

Write-downs of intangibles in doValue Spain and DTAs

Considering the preliminary Business Plan 2024-2026 for the Iberia Region, which was approved by the Board of Directors in January, the Group has proceeded with recording an adjustment of certain intangible asset values (namely, SLA brand and Goodwill) and deferred tax asset mainly related to the activities of the Group in Iberia Region. These adjustments have no cash impact.

The overall negative non-monetary impact of the accounting adjustments on the net result of the Group for the full year 2023 amounts to Euro 39.2 million.

Balance Sheet and Cash Flow Generation

Net Debt as of December 31st, 2023, stood at €475.7 million, compared to the €429.9 million as of December 31st , 2022.

The year 2023 was characterised by €21.4 million of Capex a decline of -30.7% or €9.5 million compared to the level of 2022. Overall, the Capex plan 2022-2023 is 15% lower than the plan as presented in the Capital Markets Day in January 2022 (considering the savings achieved with suppliers, the broader review of the plan during the last twelve months and the non-renewal of the Sareb contract).

In addition, a dividend of €48 million was paid in 2023 versus €39 million in 2022

Financial Leverage (represented by the ratio between Net Debt and EBITDA excluding non-recurring items) stands as of December 31st, 2023, at 2.7x (vs 2.1x as of December 31st, 2022) due to the increase in Net Debt and lower EBITDA excluding non-recurring items.

The Financial Leverage of 2.7x is within the 2.0-3.0x target range of the 2022-2024 and in line with the guidance despite the declining EBITDA following the challenging market conditions, thus showing the resilience and the conservative approach of doValue's financial structure. In addition, as of December 31st, 2023, doValue had €112.4 million of cash on its balance sheet and €107 million of undrawn committed lines.

Separate financial statements of doValue S.p.A.

The Board of Directors has also approved the financial statements of the Group parent company doValue S.p.A. for the fiscal year 2023, which reported Net Revenues equal to €121.0 million (€149.4 million in 2022), EBITDA equal to

€25.5 million (€42.6 million in 2022), and Net Income, after taxes and excluding non-recurring items, equal to €5.4 million (€24.4 million in 2022).

Dividends

On April 27 th, 2023, the Annual General Meeting of doValue approved the dividend related to the fiscal year 2023 of €0.60 per share for a total amount of €48.0 million. The dividend was paid on May 10th, 2023.

In order to preserve financial flexibility and strength in a more volatile environment, the board of directors will not propose any dividend distribution in 2024.

Update on business activity

Since the beginning of 2023, doValue has been active on several fronts across the three regions in which it operates, below is a summary of all the main initiatives and key mandates.

• Greek Secondary transactions doValue completed secondary transaction in Greece for a total a €1.1 billion of GBV, including innovative sales of reperforming loan portfolio. The disposals allow doValue to accelerate its collection activity in Greece (for which it received a collection fee in 2023) whilst retaining the long-term servicing mandate on the portfolio.
• Efesto Fund: in 2023 the Efesto Fund has received commitments for UTP contributions for an aggregate amount of €0.7 billion, including sizeable commitments from two top tier banks in Italy. Efesto fund had asset under management for an overall €1.7 billion as of December 31st 2023, managing a portfolio of 2,500+ SMEs
• Project Frontier II: doValue has completed in 2023 the securitisation process of a €1 billion portfolio originated by NBG under the Hellenic Asset Protection Scheme (HAPS). The portfolio of mostly secured nonperforming loans has been fully onboarded in February 2024.
• Project Sky: in September 2023 doValue Cyprus has successfully completed the onboarding of the Sky Portfolio awarded by an affiliate of Cerberus Capital Management for a total value of approximately €2.4 billion of non-performing exposures originated by Alpha Bank Cyprus.
• Fonteno / Esino: In 2023, among the contributions received by Efesto, there is a UTP (Unlikely to Pay) residential mortgage portfolio with a GBV of approximately €350 million. One third of this portfolio has been re-securitized with the goal of developing re-performing strategies.
• Luzzatti: at the end of December, doValue received a servicing mandate from the securitization vehicle consortium Luzzatti for master and special servicing activities related to a portfolio of NPLs with GBV of €313m, originated by 12 popular banks. 51% of the assets correspond to mortgages secured by first mortgages. doValue had assisted Luzzatti from the due diligence phase on the portfolio
• New portfolios in Spain: during 2023 doValue has successfully captured portfolios awarded by different international investors for a total €0.8 billion of secured and unsecured non-performing loans, over €0.3 billion in early-in-arrears and non-performing loans from new contracts with Spanish banks and €0.2 billion of new Real Estate contracts with new customers.

Other resolutions of the Board of Directors

During the meeting held on March 20th, the Board also approved the following:

• Consolidated Non-Financial Statement drawn up pursuant to Legislative Decree 254/2016 as of December 31st , 2023.
• Directors' Report and Ownership Structures pursuant to Article 123-bis of Legislative Decree No. 58 of February 24th, 1998, for the year 2023;
• Report on Remuneration Policy and Compensation Paid (Section 1 and 2) pursuant to Article 123-ter of Legislative Decree No. 58 of February 24, 1998 and Article 84-quater of CONSOB Regulation No. 11971/1999;
• Illustrative Report and Disclosure Document relating to the 2024-2026 cycle of the 2022-2024 LTIP of Compensation based on financial instruments pursuant to Article 84-bis and Schedule 7 of Annex 3A of the

Regulations adopted by CONSOB Resolution No. 11971 of May 14th, 1999, as amended and supplemented, in implementation of Article 114-bis of Legislative Decree No. 58 of February 24th, 1998.

Illustrative Reports, referred to in the resolutions of the Board of Directors and referring to the items on the agenda of the Shareholders' Meeting of April 26th, 2024, will be made available within the legal deadlines and in the prescribed forms.

Market Outlook

European banks are currently enjoying the benefits of exceptionally high interest rates, which have led to a notable increase in net interest margins. Despite the ongoing deterioration in the macroeconomic environment and high interest rates putting pressures on households and SMEs, the cost of risk for European banks has surprisingly remained at historical lows. This scenario, coupled with a low NPE ratio resulting from an extensive de-risking process throughout Southern Europe carried out in the previous years, has created a challenging landscape for debt servicers and purchasers, marked by a shrinking pipeline for primary deals.

Despite these challenges, the economic forecast for Europe remains cautious, with modest GDP growth, a looming commercial real estate crisis, and a rise in bankruptcies, particularly among SMEs. The Bank of Italy anticipates a decline in credit quality over the next two years. In this context, the governor of the Bank of Italy has emphasized the crucial role of credit servicers in maintaining a robust banking and economic system. Meanwhile, large Spanish banks are managing €71 billion in non-performing loans (NPLs) on their balance sheets, a 2.3% year-over-year increase compared to 2022. Greece is experiencing strong positive GDP growth, yet banks are still in the midst of their de-risking processes.

In light of this situation, doValue estimates the pipeline of potential servicing mandates for next 18 months across Southern Europe at approximately €40 billion, including secondary transactions. However, any further delays in anticipated primary transactions could challenge a return to growth in 2024. To address this, the company has adopted a flexible cost structure and plans to make additional adjustments to safeguard profitability and cash generation.

More broadly, doValue's activities are supported by a substantial and contractual long-term GBV and are buoyed by external, favourable medium to long-term trends. These include the enforcement of strict regulations by banks for loan recognition (IFRS 9, Calendar Provisioning, Basel IV), which encourage a proactive approach to balance sheet management.

Certification of the Financial Reporting Officer

Davide Soffietti, in his capacity as Financial Reporting Officer responsible for preparing corporate accounting documents, certifies – pursuant to Article 154-bis, paragraph 2, of Legislative Decree 58/1998 (the Consolidated Financial Intermediation Act) – that the accounting information in this press release is consistent with the data in the accounting documentation, books and other accounting records.

The preliminary financial results for 2023 as of December 31 st , 2023, will be made available to the public at the Company's headquarters and at Borsa Italiana, as well as on the website www.dovalue.it in the "Investor Relations / Financial Reports and Presentations" section by the statutory deadlines.

We inform you that doValue S.p.A. has adopted the simplified rules provided for in Articles 70, paragraph 8, and 71, paragraph 1-bis, of the Consob Issuers Regulation no. 11971/1999, subsequently amended, and has therefore exercised the option to derogate from compliance with the obligations to publish the information documents provided for in Articles 70, paragraph 6, and 71, paragraph 1, of that Regulation on the occasion of significant mergers, spinoffs, capital increases through the contribution of assets in kind, acquisitions and sales.

doValue is the main operator in Southern Europe in the management of credit and real estate for banks and investors. With more than 20 years of experience and approximately €116 billion of assets under management (Gross Book Value) as of December 31st, 2023 across Italy, Spain, Portugal, Greece and Cyprus, doValue Group's activities contribute to the economic growth by promoting the sustainable development of the financial system. The doValue Group offers an integrated range of services: management of Non-Performing Loans (NPL), Unlikely To Pay (UTP), Early Arrears, performing credit, real estate management, master servicing, data processing and other ancillary services for credit management. The shares of doValue are listed on the STAR segment of Euronext Milan (EXM) and, in 2023, the Group reported Gross Revenues of €486 million and EBITDA excluding non-recurring items of €179 million.

Contacts

Image Building doValue Media Relations Investor Relations Raffaella Casula (+39 348 306 7877) Daniele Della Seta (+39 06 4797 9184) Francesca Alberio, Matide Tagliavini (+39 02 89011300) investorrelations@dovalue.it dovalue@imagebuilding.it

MANAGEMENT INCOME STATEMENT (€ '000)

Condensed Income Statement	12/31/2023	12/31/2022	Change €	Change %
Servicing Revenues:	419,890	510,164	(90,274)	(17.7)%
o/w: NPE revenues	366,697	433,538	(66,841)	(15.4)%
o/w: REO revenues	53,193	76,626	(23,433)	(30.6)%
Co-investment revenues	1,290	1,507	(217)	(14.4)%
Ancillary and other revenues	64,551	46,578	17,973	38.6%
Gross revenues	485,731	558,249	(72,518)	(13.0)%
NPE Outsourcing fees	(14,365)	(20,913)	6,548	(31.3)%
REO Outsourcing fees	(9,684)	(22,631)	12,947	(57.2)%
Ancillary Outsourcing fees	(18,525)	(14,285)	(4,240)	29.7%
Net revenues	443,157	500,420	(57,263)	(11.4)%
Staff expenses	(196,312)	(212,395)	16,083	(7.6)%
Administrative expenses	(71,500)	(89,317)	17,817	(19.9)%
Total o.w. IT	(30,662)	(33,034)	2,372	(7.2)%
Total o.w. Real Estate	(5,084)	(5,586)	502	(9.0)%
Total o.w. SG&A	(35,754)	(50,697)	14,943	(29.5)%
Operating expenses	(267,812)	(301,712)	33,900	(11.2)%
EBITDA	175,345	198,708	(23,363)	(11.8)%
EBITDA margin	36.1%	35.6%	0.5%	1.4%
Non-recurring items included in EBITDA	(3,355)	(2,979)	(376)	12.6%
EBITDA excluding non-recurring items	178,700	201,687	(22,987)	(11.4)%
EBITDA margin excluding non-recurring items	37.2%	36.1%	1.0%	2.8%
Net write-downs on property, plant, equipment and intangibles	(91,920)	(71,021)	(20,899)	29.4%
Net provisions for risks and charges	(16,555)	(13,963)	(2,592)	18.6%
Net write-downs of loans	(906)	493	(1,399)	n.s.
EBIT	65,964	114,217	(48,253)	(42.2)%
Net income (loss) on financial assets and liabilities
measured at fair value	(8,180)	(22,520)	14,340	(63.7)%
Net financial interest and commissions	(29,534)	(28,868)	(666)	2.3%
EBT	28,250	62,829	(34,579)	(55.0)%
Non-recurring items included in EBT	(19,674)	(35,901)	16,227	(45.2)%
EBT excluding non-recurring items	47,924	98,730	(50,806)	(51.5)%
Income tax for the period	(41,891)	(36,354)	(5,537)	15.2%
Profit (Loss) for the period	(13,641)	26,475	(40,116)	n.s.
Profit (loss) for the period attributable to Non-controlling
interests	(4,189)	(9,973)	5,784	(58.0)%
Profit (Loss) for the period attributable to the
Shareholders of the Parent Company	(17,830)	16,502	(34,332)	n.s.
Non-recurring items included in Profit (loss) for the period	(21,420)	(35,494)	14,074	(39.7)%
O.w. Non-recurring items included in Profit (loss) for the period attributable to Non-controlling interest	(1,755)	(1,433)	(322)	22.5%
Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding non
recurring items	1,835	50,563	(48,728)	(96.4)%
Profit (loss) for the period attributable to Non-controlling
interests excluding non-recurring items	5,944	11,406	(5,462)	(47.9)%
Earnings per share (in Euro)	(0.23)	0.21	(0.43)	n.s.
Earnings per share excluding non-recurring items (Euro)	0.02	0.64	(0.62)	(96.4)%

MANAGEMENT BALANCE SHEET (€ '000)

Condensed Balance Sheet	12/31/2023	12/31/2022	Change €	Change %
Cash and liquid securities	112,376	134,264	(21,888)	(16.3)%
Financial assets	46,167	57,984	(11,817)	(20.4)%
Property, plant and equipment	48,678	59,191	(10,513)	(17.8)%
Intangible assets	473,784	526,888	(53,104)	(10.1)%
Tax assets	99,483	118,226	(18,743)	(15.9)%
Trade receivables	199,844	200,143	(299)	(0.1)%
Assets held for sale	16	13	3	23.1%
Other assets	51,216	29,889	21,327	71.4%
Total Assets	1,031,564	1,126,598	(95,034)	(8.4)%
Financial liabilities: due to banks/bondholders	588,030	564,123	23,907	4.2%
Other financial liabilities	96,540	120,861	(24,321)	(20.1)%
Trade payables	85,383	70,381	15,002	21.3%
Tax liabilities	65,096	67,797	(2,701)	(4.0)%
Employee termination benefits	8,412	9,107	(695)	(7.6)%
Provisions for risks and charges	26,356	37,655	(11,299)	(30.0)%
Other liabilities	57,056	75,754	(18,698)	(24.7)%
Total Liabilities	926,873	945,678	(18,805)	(2.0)%
Share capital	41,280	41,280	-	n.s.
Reserves	35,676	83,109	(47,433)	(57.1)%
Treasury shares	(6,095)	(4,332)	(1,763)	40.7%
Profit (loss) for the period attributable to the Shareholders of the
Parent Company	(17,830)	16,502	(34,332)	n.s.
Net Equity attributable to the Shareholders of the Parent
Company	53,031	136,559	(83,528)	(61.2)%
Total Liabilities and Net Equity attributable to the Shareholders
of the Parent Company	979,904	1,082,237	(102,333)	(9.5)%
Net Equity attributable to Non-Controlling Interests	51,660	44,361	7,299	16.5%
Total Liabilities and Net Equity	1,031,564	1,126,598	(95,034)	(8.4)%

MANAGEMENT CASH FLOW (€ '000)

Condensed Cash flow	12/31/2023	12/31/2022
EBITDA	175,345	198,708
Capex	(21,361)	(30,833)
EBITDA-Capex	153,984	167,875
as % of EBITDA	88%	84%
Adjustment for accrual on share-based incentive system payments	(5,853)	5,557
Changes in Net Working Capital (NWC)	(10,673)	(15,137)
Changes in other assets/liabilities	(58,301)	(74,697)
Operating Cash Flow	79,157	83,598
Corporate Income Tax paid	(27,595)	(44,042)
Financial charges	(23,329)	(27,146)
Free Cash Flow	28,233	12,410
(Investments)/divestments in financial assets	2,599	3,664
Equity (investments)/divestments	(21,520)	-
Treasury shares buy-back	(2,115)	-
Dividends paid to minority shareholders	(5,000)	(5,002)
Dividends paid to Group shareholders	(47,992)	(39,140)
Net Cash Flow of the period	(45,795)	(28,068)
Net financial Position - Beginning of period	(429,859)	(401,791)
Net financial Position - End of period	(475,654)	(429,859)
Change in Net Financial Position	(45,795)	(28,068)

It should be noted that for the sole purpose of better representing the dynamics involving the net working capital, a reclassification was made of the movements related to the "Advance to Suppliers" and to the "Contractual Advance from ERB" from item "Changes in other assets/liabilities" to item "Changes in Net Working Capital (NWC)" for a total of €25.9 as at Dec-23 and €17.9m in Dec-22

ALTERNATIVE PERFORMANCE INDICATORS

KPIs	12/31/2023	12/31/2022
Gross Book Value (EoP) - Group	116,355,196	120,478,346
Collections of the period - Group	4,947,493	5,494,503
LTM Collections / GBV EoP - Group - Stock	4.6%	4.1%
Gross Book Value (EoP) - Italy Collections of the period - Italy	68,241,322 1,661,168	72,031,038 1,707,403
LTM Collections / GBV EoP - Italy - Stock	2.5%	2.5%
Gross Book Value (EoP) - Iberia Collections of the period - Iberia	10,861,946 1,136,157	11,650,908 1,965,314
LTM Collections / GBV EoP - Iberia - Stock	11.0%	9.2%
Gross Book Value (EoP) - Hellenic Region	37,251,928	36,796,401
Collections of the period - Hellenic Region	2,150,168	1,821,787
LTM Collections / GBV EoP - Hellenic Region - Stock	7.0%	6.1%
Staff FTE / Total FTE Group EBITDA	42.0% 175,345	45.0% 198,708
Non-recurring items (NRIs) included in EBITDA	(3,355)	(2,979)
EBITDA excluding non-recurring items	178,700	201,687
EBITDA margin	36.1%	35.6%
EBITDA margin excluding non-recurring items	37.2%	36.1%
Profit (loss) for the period attributable to the shareholders of the Parent Company	(17,830)	16,502
Non-recurring items included in Profit (loss) for the period attributable to the Shareholders of the Parent Company	(19,665)	(34,061)
Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding non recurring items	1,835	50,563
Earnings per share (Euro)	(0.23)	0.21
Earnings per share excluding non-recurring items (Euro)	0.02	0.64
Capex	21,361	30,833
EBITDA - Capex	153,984	167,875
Net Working Capital	114,461	129,762
Net Financial Position	(475,654)	(429,859)
Leverage (Net Debt / EBITDA excluding non-recurring items LTM)	2.7x	2.1x

SEGMENT REPORTING (€ '000)

	Year 2023
Condensed Income Statement (excluding non-recurring items)	Italy	Hellenic Region	Iberia	Total
Servicing revenues	120,040	235,013	60,091	415,144
o/w NPE Revenues	120,040	207,189	38,284	365,513
o/w REO Revenues	-	27,824	21,807	49,631
Co-investment revenues	1,290	-	-	1,290
Ancillary and other revenues	42,257	16,128	6,122	64,507
Gross Revenues	163,587	251,141	66,213	480,941
NPE Outsourcing fees	(6,675)	(4,609)	(2,950)	(14,234)
REO Outsourcing fees	-	(4,522)	(4,073)	(8,595)
Ancillary Outsourcing fees	(17,474)	-	(1,029)	(18,503)
Net revenues	139,438	242,010	58,161	439,609
Staff expenses	(80,042)	(75,065)	(37,032)	(192,139)
Administrative expenses	(27,361)	(22,545)	(18,864)	(68,770)
o/w IT	(12,395)	(10,641)	(6,765)	(29,801)
o/w Real Estate	(1,320)	(2,606)	(1,104)	(5,030)
o/w SG&A	(13,646)	(9,298)	(10,995)	(33,939)
Operating expenses	(107,403)	(97,610)	(55,896)	(260,909)
EBITDA excluding non-recurring items	32,035	144,400	2,265	178,700
EBITDA margin excluding non-recurring items	19.6%	57.5%	3.4%	37.2%
Contribution to EBITDA excluding non-recurring items	17.9%	80.8%	1.3%	100.0%

	Year 2023 vs 2022
Condensed Income Statement (excluding non-recurring items)	Italy	Hellenic Region	Iberia	Total
Servicing revenues
Year 2023	120,040	235,013	60,091	415,144
Year 2022	145,093	249,394	115,677	510,164
Change	(25,053)	(14,381)	(55,586)	(95,020)
Co-investment revenues, ancillary and other revenues
Year 2023	43,547	16,128	6,122	65,797
Year 2022	37,417	3,854	6,814	48,085
Change	6,130	12,274	(692)	17,712
Outsourcing fees
Year 2023	(24,149)	(9,131)	(8,052)	(41,332)
Year 2022	(20,489)	(8,247)	(29,093)	(57,829)
Change	(3,660)	(884)	21,041	16,497
Staff expenses
Year 2023	(80,042)	(75,065)	(37,032)	(192,139)
Year 2022	(84,610)	(73,073)	(54,712)	(212,395)
Change	4,568	(1,992)	17,680	20,256
Administrative expenses
Year 2023	(27,361)	(22,545)	(18,864)	(68,770)
Year 2022	(29,333)	(22,745)	(34,260)	(86,338)
Change	1,972	200	15,396	17,568
EBITDA excluding non-recurring items
Year 2023	32,035	144,400	2,265	178,700
Year 2022	48,078	149,183	4,426	201,687
Change	(16,043)	(4,783)	(2,161)	(22,987)
EBITDA margin excluding non-recurring items
Year 2023	19.6%	57.5%	3.4%	37.2%
Year 2022	26.3%	58.9%	3.6%	36.1%
Change	(7)p.p.	(1)p.p.	(0)p.p.	1p.p.

Fine Comunicato n.1967-35-2024	Numero di Pagine: 16
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