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Earnings Release • Feb 22, 2024
4145_10-k_2024-02-22_ab313ad7-76c0-49af-8464-e419fde8ab32.pdf
Earnings Release
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| Informazione Regolamentata n. 1967-23-2024 |
Data/Ora Inizio Diffusione 22 Febbraio 2024 21:19:30 |
Euronext Star Milan | ||
|---|---|---|---|---|
| Societa' | : | DOVALUE | ||
| Identificativo Informazione Regolamentata |
: | 186494 | ||
| Utenza - Referente | : | DOVALUEN06 - Della Seta | ||
| Tipologia | : | 1.1; 2.2 | ||
| Data/Ora Ricezione | : | 22 Febbraio 2024 21:19:30 | ||
| Data/Ora Inizio Diffusione | : | 22 Febbraio 2024 21:19:30 | ||
| Oggetto | : | Approval of preliminary results for 2023 | ||
| Testo del comunicato |
Vedi allegato
PRESS RELEASE
THE BOARD OF DIRECTORS APPROVES THE PRELIMINARY RESULTS FOR 2023
€485.7 MILLION OF GROSS REVENUES
€178.4 MILLION OF EBITDA EX NRIs
FINANCIAL LEVERAGE AT 2.7x
€11 BILLION OF NEW GBV IN 2023
NEW BUSINESS PLAN TO BE PRESENTED ON 21 MARCH 2024 DURING CAPITAL MARKETS DAY
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 (-12.6% vs 2022) gaining +0.8 p.p. on Gross Revenues
- EBITDA ex NRIs at €178.4 million (-11.5% vs 2022, or -4.1% excluding Sareb) in line with guidance
- EBITDA margin ex NRIs at 37.1% (+1.0 p.p. vs 2022)
- Good momentum in Q4 2023 with EBITDA ex NRI at +26.6%
- Attributable Net Income ex NRIs equal to €2.7 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 €475.2 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 €21.3 million for 2023
- Operating cash flow at €79.4 million, similar to 2022 levels, despite decrease in EBITDA
- Free cash flow before dividends and equity investments at €28.5m (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
- Dividends distribution in 2024 and dividend policy to be communicated in the context of the new business plan
CMD on 21 March 2024
• doValue will held a capital market day on the 21st March to present its new 2024-2026 business plan
Rome, February 22nd, 2024 – The Board of Directors of doValue S.p.A. (the "Company", the "Group" or "doValue") has approved the preliminary financial results as of December 31st, 2023. Please note that the approval by the board of directors of the separate financial statements and the consolidated financial statements as of December 31st, 2023, is scheduled for March 21 st, 2024.
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 | €261.2m | €298.7m | -12.6% |
| EBITDA including non-recurring items | €175.1m | €198.7m | -11.9% |
| EBITDA excluding non-recurring items | €178.4m | €201.7m | -11.5% |
| EBITDA margin excluding non-recurring items | 37.1% | 36.1% | +1.0 p.p. |
| Net Income including non-recurring items | -€18.9m | €16.5m | <100.0% |
| Net Income excluding non-recurring items | €2.7m | €50.6m | -94.7% |
| Capex | €21.3m | €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 | €475.2m | €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 €261.2 million for 2023 (€298.7 million in 2022) have declined by 12.6% year on year and are slightly higher as a percentage of Gross Revenues at 54.3% (vs 53.5% in 2022). The decline in Operating Expenses in absolute terms of €37.5 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 11.5% to €178.4 million (from €201.7 million in 2022), with an EBITDA margin of 37.1% (+1.0 p.p. vs 2022). Excluding Sareb, EBITDA excluding non-recurring items declined by 4.1% year on year.
Including non-recurring items, EBITDA stood at €175.1 million, recording a decline of 11.9% 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 -€18.9 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 €2.7 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 €475.2 million, compared to the €429.9 million as of December 31st , 2022.
The year 2023 was characterised by €21.3 million of Capex a decline of -30.9% 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.
Dividends
On April 27 th, 2023, the Annual General Meeting of doValue approved the dividend related to the fiscal year 2022 of €0.60 per share for a total amount of €48.0 million. The dividend was paid on May 10th , 2023.
Following the approval of the new business plan, the board of directors will take a stance on an appropriate dividend policy for the current market context and doValue's financial policy.
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.
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.
Webcast conference call
The preliminary financial results for 2023 will be presented on Friday, February 23 th , 2024, at 10:30 am CET in a conference call held by the Group's top management.
The conference call can be followed via webcast by connecting to the bank's website at www.doValue.it or the following URL: https://87399.choruscall.eu/links/dovalue240223.html
As an alternative to webcast, you can join the conference call by calling one of the following numbers:
- Italy and other countries: +39 028020902
- UK: +44 2030595875
- USA: +1 7187058795
The presentation by top management will be available as from the start of the conference call on the www.dovalue.it site in the "Investor Relations/Financial Reports and Presentations" section.
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 th , 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 €178 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) [email protected] [email protected]
MANAGEMENT INCOME STATEMENT (€ '000)
| Condensed Income Statement | 12/31/2023 | 12/31/2022 | Change € | Change % |
|---|---|---|---|---|
| Servicing Revenues: | 419,889 | 510,164 | (90,275) | (17.7)% |
| o/w: NPE revenues | 366,696 | 433,538 | (66,842) | (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 | 64,552 | 46,578 | 17,974 | 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 | (196,240) | (212,395) | 16,155 | (7.6)% |
| Administrative expenses | (71,849) | (89,317) | 17,468 | (19.6)% |
| Total o.w. IT | (30,672) | (33,034) | 2,362 | (7.2)% |
| Total o.w. Real Estate | (5,084) | (5,586) | 502 | (9.0)% |
| Total o.w. SG&A | (36,093) | (50,697) | 14,604 | (28.8)% |
| Operating expenses | (268,089) | (301,712) | 33,623 | (11.1)% |
| EBITDA | 175,068 | 198,708 | (23,640) | (11.9)% |
| EBITDA margin | 36.0% | 35.6% | 0.4% | 1.3% |
| Non-recurring items included in EBITDA | (3,355) | (2,979) | (376) | 12.6% |
| EBITDA excluding non-recurring items | 178,423 | 201,687 | (23,264) | (11.5)% |
| EBITDA margin excluding non-recurring items | 37.1% | 36.1% | 1.0% | 2.7% |
| Net write-downs on property, plant, equipment and | ||||
| intangibles | (92,268) | (71,021) | (21,247) | 29.9% |
| Net provisions for risks and charges | (18,463) | (13,963) | (4,500) | 32.2% |
| Net write-downs of loans | (906) | 493 | (1,399) | n.s. |
| EBIT | 63,431 | 114,217 | (50,786) | (44.5)% |
| 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 | (29,042) | (28,868) | (174) | 0.6% |
| EBT | 26,209 | 62,829 | (36,620) | (58.3)% |
| Non-recurring items included in EBT | (21,582) | (35,901) | 14,319 | (39.9)% |
| EBT excluding non-recurring items | 47,791 | 98,730 | (50,939) | (51.6)% |
| Income tax for the period | (40,563) | (36,354) | (4,209) | 11.6% |
| Profit (Loss) for the period | (14,354) | 26,475 | (40,829) | n.s. |
| Profit (loss) for the period attributable to Non-controlling | ||||
| interests | (4,527) | (9,973) | 5,446 | (54.6)% |
| Profit (Loss) for the period attributable to the | ||||
| Shareholders of the Parent Company | (18,881) | 16,502 | (35,383) | n.s. |
| Non-recurring items included in Profit (loss) for the period | (23,328) | (35,494) | 12,166 | (34.3)% |
| 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 | 2,692 | 50,563 | (47,871) | (94.7)% |
| Profit (loss) for the period attributable to Non-controlling | ||||
| interests excluding non-recurring items | 6,282 | 11,406 | (5,124) | (44.9)% |
| Earnings per share (in Euro) | (0.24) | 0.21 | (0.45) | n.s. |
| Earnings per share excluding non-recurring items (Euro) | 0.03 | 0.64 | (0.61) | (94.7)% |
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 | 48,387 | 59,191 | (10,804) | (18.3)% |
| Intangible assets | 473,339 | 526,888 | (53,549) | (10.2)% |
| Tax assets | 98,679 | 118,226 | (19,547) | (16.5)% |
| Trade receivables | 200,537 | 200,143 | 394 | 0.2% |
| Assets held for sale | 16 | 13 | 3 | 23.1% |
| Other assets | 46,739 | 29,889 | 16,850 | 56.4% |
| Total Assets | 1,026,240 | 1,126,598 | (100,358) | (8.9)% |
| Financial liabilities: due to banks/bondholders | 587,628 | 564,123 | 23,505 | 4.2% |
| Other financial liabilities | 96,540 | 120,861 | (24,321) | (20.1)% |
| Trade payables | 85,003 | 70,381 | 14,622 | 20.8% |
| Tax liabilities | 63,689 | 67,797 | (4,108) | (6.1)% |
| 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 | 54,635 | 75,754 | (21,119) | (27.9)% |
| Total Liabilities | 922,263 | 945,678 | (23,415) | (2.5)% |
| Share capital | 41,280 | 41,280 | - | n.s. |
| Reserves | 35,675 | 83,109 | (47,434) | (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 | (18,881) | 16,502 | (35,383) | n.s. |
| Net Equity attributable to the Shareholders of the Parent | ||||
| Company | 51,979 | 136,559 | (84,580) | (61.9)% |
| Total Liabilities and Net Equity attributable to the Shareholders | ||||
| of the Parent Company | 974,242 | 1,082,237 | (107,995) | (10.0)% |
| Net Equity attributable to Non-Controlling Interests | 51,998 | 44,361 | 7,637 | 17.2% |
| Total Liabilities and Net Equity | 1,026,240 | 1,126,598 | (100,358) | (8.9)% |
MANAGEMENT CASH FLOW (€ '000)
| Condensed Cash flow | 12/31/2023 | 12/31/2022 |
|---|---|---|
| EBITDA | 175,068 | 198,708 |
| Capex | (21,300) | (30,833) |
| EBITDA-Capex | 153,768 | 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) | (11,746) | (15,137) |
| Changes in other assets/liabilities | (56,610) | (74,697) |
| Operating Cash Flow | 79,559 | 83,598 |
| Corporate Income Tax paid | (27,595) | (44,042) |
| Financial charges | (23,329) | (27,146) |
| Free Cash Flow | 28,635 | 12,410 |
| (Investments)/divestments in financial assets | 2,598 | 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 | (45,394) | (28,068) |
| Net financial Position - Beginning of period | (429,859) | (401,791) |
| Net financial Position - End of period | (475,253) | (429,859) |
| Change in Net Financial Position | (45,394) | (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 | 68,241,322 | 72,031,038 |
| Collections of the period - Italy | 1,661,168 | 1,707,403 |
| LTM Collections / GBV EoP - Italy - Stock | 2.5% | 2.5% |
| Gross Book Value (EoP) - Iberia | 10,861,946 | 11,650,908 |
| Collections of the period - Iberia | 1,136,157 | 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% |
| EBITDA | 175,068 | 198,708 |
| Non-recurring items (NRIs) included in EBITDA | (3,355) | (2,979) |
| EBITDA excluding non-recurring items | 178,423 | 201,687 |
| EBITDA margin | 36.0% | 35.6% |
| EBITDA margin excluding non-recurring items | 37.1% | 36.1% |
| Profit (loss) for the period attributable to the shareholders of the Parent Company | (18,881) | 16,502 |
| Non-recurring items included in Profit (loss) for the period attributable to the Shareholders of the Parent Company |
(21,573) | (34,061) |
| Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding non-recurring items |
2,692 | 50,563 |
| Earnings per share (Euro) | (0.24) | 0.21 |
| Earnings per share excluding non-recurring items (Euro) | 0.03 | 0.64 |
| Capex | 21,300 | 30,833 |
| EBITDA - Capex | 153,768 | 167,875 |
| Net Working Capital | 115,534 | 129,762 |
| Net Financial Position | (475,253) | (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 | 120,039 | 235,013 | 60,091 | 415,143 |
| o/w NPE Revenues | 120,039 | 207,189 | 38,284 | 365,512 |
| o/w REO Revenues | - | 27,824 | 21,807 | 49,631 |
| Co-investment revenues | 1,290 | - | - | 1,290 |
| Ancillary and other revenues | 42,258 | 16,128 | 6,122 | 64,508 |
| 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 | (80,015) | (75,020) | (37,032) | (192,067) |
| Administrative expenses | (27,361) | (22,894) | (18,864) | (69,119) |
| o/w IT | (12,395) | (10,651) | (6,765) | (29,811) |
| o/w Real Estate | (1,320) | (2,606) | (1,104) | (5,030) |
| o/w SG&A | (13,646) | (9,637) | (10,995) | (34,278) |
| Operating expenses | (107,376) | (97,914) | (55,896) | (261,186) |
| EBITDA excluding non-recurring items | 32,062 | 144,096 | 2,265 | 178,423 |
| EBITDA margin excluding non-recurring items | 19.6% | 57.4% | 3.4% | 37.1% |
| Contribution to EBITDA excluding non-recurring items | 18.0% | 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 | 120,039 | 235,013 | 60,091 | 415,143 | |
| Year 2022 | 145,093 | 249,394 | 115,677 | 510,164 | |
| Change | (25,054) | (14,381) | (55,586) | (95,021) | |
| Co-investment revenues, ancillary and other revenues | |||||
| Year 2023 | 43,548 | 16,128 | 6,122 | 65,798 | |
| Year 2022 | 37,417 | 3,854 | 6,814 | 48,085 | |
| Change | 6,131 | 12,274 | (692) | 17,713 | |
| 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 | (80,015) | (75,020) | (37,032) | (192,067) | |
| Year 2022 | (84,610) | (73,073) | (54,712) | (212,395) | |
| Change | 4,595 | (1,947) | 17,680 | 20,328 | |
| Administrative expenses | |||||
| Year 2023 | (27,361) | (22,894) | (18,864) | (69,119) | |
| Year 2022 | (29,333) | (22,745) | (34,260) | (86,338) | |
| Change | 1,972 | (149) | 15,396 | 17,219 | |
| EBITDA excluding non-recurring items | |||||
| Year 2023 | 32,062 | 144,096 | 2,265 | 178,423 | |
| Year 2022 | 48,078 | 149,183 | 4,426 | 201,687 | |
| Change | (16,016) | (5,087) | (2,161) | (23,264) | |
| EBITDA margin excluding non-recurring items | |||||
| Year 2023 | 19.6% | 57.4% | 3.4% | 37.1% | |
| Year 2022 | 26.3% | 58.9% | 3.6% | 36.1% | |
| Change | (7)p.p. | (2)p.p. | (0)p.p. | 1p.p. |
| Fine Comunicato n.1967-23-2024 | Numero di Pagine: 16 |
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