Dovalue

Earnings Release • Aug 5, 2021

Results for H1 2021

August 5th, 2021

H1 2021 results - key highlights

1 Well ahead on FY 2021 targets for GBV inflows

• ✓ Ca. €5.2bn of new mandates across different asset classes and countries, on track to reach target of €7-9bn in 2021
• ✓ Ca. €2.0bn of forward flow agreements, already reached target of €2bn in 2021
• ✓ Confirmed leadership in Italy with >75% market share (on GACS awarded to third-party servicers)
• ✓ doValue, Bain and Fortress exclusive consortium on Project Frontier in Greece, potentially ca. €6bn of additional GBV

2	Solid semester showing improving market conditions in all countries
	Normalization of collections is gaining pace with Gross Revenues at €254m (+54% YoY) and Collections at €2.7bn (+67% YoY) ✓	€73m
	✓ EBITDA ex NRI at €73m shows strong YoY growth from €36m in H1 2020 (+104%)	+104% YoY
	✓ Significant overperformance of Greece versus pre-COVID business plan (both in collections and marginality)
	✓ Net Income growing despite increasing financial charges and D&A related to acquisitions
3	Improved balance sheet structure and strong cash flow generation
	✓ Successful €300m / 5 year bond issuance, refinancing existing Senior Facility Agreement and extending avg. debt duration	Bond issuance
	✓ Cash generation continues to be strong, with €37m of operating cash flow and €21m of free cash flow
	✓ Continuing reduction in leverage (from 2.6x at Dec-20 to 2.4x at Jun-21) notwithstanding payment of the dividend	€300m

Inflows in 2021 YTD well on track to meet targets

A possible further consolidation of the Southern Europe banking sector could lead to additional opportunities for doValue given our type of banking clients

Collections and regulatory environment

Overall COVID-19 has caused a delay in collections for 2020 (i.e no loss of revenues) and an increase in GBV

Post-COVID recovery consolidating

• Strong top line growth (+54%) underpinned by continuous pick-up in collections and full consolidation of doValue Greece
• Net of seasonality effect (H1 gross revenues are historically 36% lower on average than H2 gross revenues), the recovery is visible also H1 2021 vs H2 2020
• Sustained EBITDA growth driven by full consolidation of doValue Greece, higher collections in Spain and progressing recovery in Italy including €4m gain on sales of notes
• EBITDA margin growing at 29% (from 22% in H1 2020) because of full contribution of higher margin businesses (e.g. Greece)

▪ Net Income growth deriving from increased EBITDA partially offset by higher financial charges and D&A resulting from acquisitions

The positive trends experienced in H2 2020 consolidating in H1 2021

Strong cash flow generation supporting dividend + M&A

Dividend distribution of €20.8m¹ in June 2021 (100% payout out of 2020 Net Income ex NRI)

Notes: 1: Actual cash out by doValue of €18.9m in June 2021, delta of €1.9m expected to be paid in H2 2021

H1 2021 summary financial highlights

		H1 2020	H1 2021	∆ (%)
e s u er n e v v ri e d R	GBV EoP	€161.8bn	€159.5bn	-1%	Strong intake of new mandates and active forward flows ▪ are stabilizing GBV despite stronger collections, in line
	Collections	€1.6bn	€2.7bn	+67%	with Group targets ▪ Collections underpinned by recovery in court activity and economic activity
	Gross Revenues	€165.3m	€254.2m	+54%	▪ Base fees at 35% of revenues, underpinning the defensive features of doValue's business model
	Net Revenues	€143.2m	€222.1m	+55%	▪ Revenue growth based on ongoing normalization of collections path and full consolidation of doValue Greece
L & e	EBITDA ex NRI1	€35.7m	€72.9m	+104%	▪ Growing profitability driven by increasing collections, full
r P u e ct pl u m	EBITDA ex NRI1 margin	22%	29%	+ 7 p.p.	consolidation of doValue Greece and €4m of capital gain on sale of notes Normalization of HR costs after end of Government ▪
str Si	EBITDA Reported	€27.5m	€72.9m	+165%	support schemes and variables compensation scheme in line with pre-Covid levels
	Net income ex NRI1	€(8.1)m	€13.5m	n.m.	▪ Net Income (impacted by non-cash D&A charges and
	Net income Reported	€(18.4)m	€8.5m	n.m.	financial charges) significantly improved vs H1 2020
n o h ati s er a C n e g	Net Financial Position / (Cash)	€396.7m	€387.8m	-2%	▪ Stable Net Financial Position
	Net Debt/ PF2 EBITDA	2.0x	2.4x	+0.4x	Positive FCF in the period with continuing deleverage ▪ ▪ Leverage ratio at lowest levels in industry

Notes: 1: Non-recurring items in Operating expenses include the costs connected with the merger between doValue Greece and doValue Hellas, those incurred for the Group reorganization project and costs referred to Covid-19 2: LTM Pro Forma including the acquisition doValue Greece.

Gross Book Value evolution

• Gross Book Value growing by 1% in H1 2021, as inflows more than compensated collections, sales, net write-offs and disposals
  • Stock of mandates already won (or secured) but still to be onboarded equal to €4.1bn
• Strong inflows from new clients in H1 2021 at €5.2bn, contribute towards meeting, and possibly exceeding, the €7-9bn target for 2021
• Strong inflows from existing clients in H1 2021 at €2.0bn with target for 2021 already achieved

One of the most diversified portfolios in the industry

1. "Other Investors" includes Fortress at 26% of total GBV (together with FINO 2 portfolio).

Revenue composition: resiliency in base fees

▪ Base fees has significantly grown from historical levels as a proportion of revenues (at 35%) despite pick-up in collections

• Structurally higher exposure to Spain and Greece & Cyprus (base fees ca. 10 and >15bps respectively vs Italy at ca. 5bps)
• Outsourcing fees stable in relative terms as perimeter as perimeter of activity stabilizes (i.e. REO/NPL)

Focus on operating expenses

Notes:

1. Non-recurring items in Operating expenses include the costs connected with the merger between doValue Greece and doValue Hellas, those incurred for the

Group reorganization project and costs referred to Covid-19

Financial highlights by geography

• Structurally higher collection rates in Iberia, Greece and Cyprus, due to shorter timing of legal procedures and improving macro environment
• Collections and REO sales trending towards normalization with improving Stock Collection Rate
• Spain and Portugal in line with expectations, supported by REO sales and real estate market holding up
• Strong results in Greece and Cyprus, with accretive profitability and downside protection in the form of higher than average base fees
• Continued overperformance of doValue Greece

Net working capital and net debt

• Long term trend of reduction of ratio NWC / Gross Revenues LTM
• Client shift towards investors (paying quicker vs banks) and doValue Greece contracts are key structural NWC positives

• No sign of stress in payments by customers due to Covid-19

• Continuous deleverage process with leverage at 2.4x and strong liquidity position at €117m (as of 30-Jun-2021), or €136m pro forma for July 2021 movements (net proceeds from bond issuance, payment of tax claim to Spanish tax authorities, payment received from Altamira seller)

• RCF of ca. €85m
• No refinancing needs until 2025

Notes: 1: LTM Pro Forma including the acquisition of Altamira Asset Management and doValue Greece.

Simple all bonds debt structure with support of banks through RCFs

• doValue took advantage of the debt market in 2019 and 2020 to support its international M&A strategy, within its stated max 3x leverage (Net Debt/EBITDA) policy
• Access to bond market provides for greater diversification and flexibility of funding
• Rationale for Senior Facility Agreement Refinancing in 2021: (i) removal of maintenance covenants reduces liquidity risk and allows for more flexibility still within our financial policy for M&A and dividends, (ii) good market timing with cost being historically low (65 bps more than the SFA which had a average duration of 1.5 years compared with a 5.0 years maturity of the bond), (iii) no principal repayment obligations within our capital structure will provide us with additional liquidity for M&A and dividends, (iv) additional flexibility for the bond to become unsecured / unguaranteed upon refinancing of the previous bond

Cash flow dynamics

• Confirmed highly cash generative nature of business with limited capex
• Net Debt reduction sustained by growing EBITDA and financial assets divestments
• Positive dynamic of operating cash flow even in a seasonally weak semester
• Operating Cash Flow conversion on EBITDA equal to 51%, Free Cash Flow conversion on EBITDA equal to 29%

Condensed consolidated income statement H1 2021

Condensed Income Statement	6/30/2021	6/30/2020 RESTATED	Change €	Change %
Servicing Revenues:	232,396	147,652	84,744	57%
o/w: NPE revenues	193,427	120,468	72,959	61%
o/w: REO revenues	38,969	27,184	11,785	43%
Co-investment revenues	4,134	263	3,871	n.s.
Ancillary and other revenues	17,666	17,411	255	1%
Gross revenues	254,196	165,326	88,870	54%
NPEOutsourcing fees	(15,336)	(9,705)	(5,631)	58%
REO Outsourcing fees	(11,308)	(6,565)	(4,743)	72%
Ancillary Outsourcing fees	(5,439)	(5,895)	456	(8)%
Net revenues	222,113	143,161	78,952	55%
Staff expenses	(106,780)	(78,225)	(28,555)	37%
Administrative expenses	(42,446)	(37,473)	(4,973)	13%
Total "o.w. IT"	(14,901)	(11,461)	(3,440)	30%
Total "o.w. Real Estate"	(3,282)	(2,397)	(885)	37%
Total "o.w. SG&A"	(24,263)	(23,615)	(648)	3%
Operating expenses	(149,226)	(115,698)	(33,528)	29%
EBITDA	72,887	27,463	45,424	165%
EBITDA margin	29%	17%	12%	73%
Non-recurring items included in EBITDA¹⁾	(3)	(8,200)	8,197	(100)%
EBITDA excluding non-recurring items	72,890	35,663	37,227	104%
EBITDA margin excluding non-recurring items	29%	22%	7%	33%
Net write-downs on property, plant, equipment and intangibles	(38,316)	(36,044)	(2,272)	6%
Net provisions for risks and charges	(6,746)	(3,929)	(2,817)	72%
Net write-downs of loans	386	53	333	n.s.
EBIT	28,211	(12,457)	40,668	n.s.
Net income (loss) on financial assets and liabilities measured at fair value	(543)	(418)	(125)	30%
Financial interest and commissions	(13,553)	(6,591)	(6,962)	106%
EBT	14,115	(19,466)	33,581	n.s.
Non-recurring items included in EBT²⁾	(6,275)	(12,365)	6,090	(49)%
EBT excluding non-recurring items	20,390	(3,817)	24,207	n.s.
Income tax for the period	(2,561)	(1,834)	(727)	40%
Profit (Loss) for the period	11,554	(21,300)	32,854	n.s.
Profit (loss) for the period attributable to Non-controlling interests	(3,007)	2,894	(5,901)	n.s.
Profit (Loss) for the period attributable to the Shareholders of the Parent Company	8,547	(18,406)	26,953	(146)%
Non-recurring items included in Profit (loss) for the period	(5,350)	(10,600)	5,250	(50)%
O.w. Non-recurring items included in Profit (loss) for the period attributable to Non-controlling interest	(357)	(287)	(70)	24%
Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding non-recurring items	13,540	(8,093)	21,633	n.s.
Profit (loss) for the period attributable to Non-controlling interests excluding non-recurring items	3,364	(2,607)	5,971	n.s.
Earnings per share (in Euro)	0.11	(0.23)	0.34	(146)%
Earnings per share excluding non-recurring items (Euro)	0.17	(0.10)	0.27	n.s.

¹⁾ Non-recurring items in Operating expenses include the costs connected with the merger between doValue Greece and doValue Hellas, the insurance reimbursement linked to the Altamira tax dispute and other consultancy related to M&A projects

²⁾ Non-recurring items included below EBITDA refer mainly to (i) termination incentive plans that have therefore been reclassified from personnel expenses, (ii) fair value delta of the Put-Option and Earn-out and (iii) income taxes

Condensed consolidated balance sheet (30/06/21)

Condensed Balance Sheet	6/30/2021	12/31/2020 RESTATED	Change €	Change %
Cash and liquid securities Financial assets	116,537 49,152	132,486 70,859	(15,949) (21,707)	(12)% (31)%
Property, plant and equipment Intangible assets Tax assets Trade receivables Assets held for sale Other assets Total Assets	30,889 538,879 132,399 193,273 30 14,947 1,076,106	36,176 564,136 126,157 175,155 30 16,485 1,121,484	(5,287) (25,257) 6,242 18,118 - (1,538) (45,378)	(15)% (4)% 5% 10% n.s. (9)% (4)%
Financial liabilities: due to banks	504,331	543,042	(38,711)	(7)%
Other financial liabilities Trade payables Tax Liabilities	75,495 62,081 97,873	76,075 51,824 91,814	(580) 10,257 6,059	(1)% 20% 7%
Employee Termination Benefits	12,954	16,465	(3,511)	(21)%
Provisions for risks and charges Other liabilities Total Liabilities Share capital Reserves Treasury shares	85,794 62,603 901,131 41,280 93,597 (75)	87,346 65,872 932,438 41,280 150,533 (103)	(1,552) (3,269) (31,307) - (56,936) 28	(2)% (5)% (3)% n.s. (38)% (27)%
Profit (loss) for the period attributable to the Shareholders of the Parent Company	8,547	(30,407)	38,954	(128)%
Net Equity attributable to the Shareholders of the Parent Company	143,349	161,303	(17,954)	(11)%
Total Liabilities and Net Equity attributable to the Shareholders of the Parent Company	1,044,480	1,093,741	(49,261)	(5)%
Net Equity attributable to Non-Ccontrolling Interests	31,626	27,743	3,883	14%
Total Liabilities and Net Equity	1,076,106	1,121,484	(45,378)	(4)%

Management cash flow H1 2021

Cash flow	6/30/2021	6/30/2020 RESTATED
EBITDA	72,887	27,463
Capex	(7,040)	(9,340)
EBITDA-Capex	65,847	18,123
as % of EBITDA	90%	66%
Adjustment for accrual on share-based incentive system payments	605	982
Changes in NWC (Net Working Capital)	(7,861)	30,629
Changes in other assets/liabilities	(21,772)	17,890
Operating Cash Flow	36,819	67,624
Tax paid (IRES/IRAP)	(2,409)	(5,120)
Financial charges	(13,021)	(5,666)
Free Cash Flow	21,389	56,838
(Investments)/divestments in financial assets	20,281	(8,324)
Equity (investments)/divestments	-	(206,857)
Dividend paid	(18,908)	(1,875)
Net Cash Flow of the period	22,762	(160,218)
Net financial Position - Beginning of period	(410,556)	(236,465)
Net financial Position - End of period	(387,794)	(396,683)
Change in Net Financial Position	22,762	(160,218)

Key performance indicators H1 2021

				CHANGE
KPIs	6/30/2021	6/30/2020 RESTATED	12/31/2020 RESTATED	€	%
Gross Book Value (EoP) - Group¹⁾	159,546,826	161,814,647	157,686,703	(2,267,821)	(1%)
Gross Book Value (EoP) - Italy	77,939,487	77,511,909	78,435,631	427,578	1%
Collections of the period - Italy	753,075	613,754	1,386,817	139,321	23%
LTM Collections - Italy	1,526,138	1,623,313	1,386,817	(97,175)	(6%)
LTM Collections - Italy - Stock	1,501,925	1,593,407	1,349,089	(91,481)	(6%)
LTM Collections / GBV EoP - Italy - Overall	2.0%	2.1%	1.8%	(0.1%)	(7%)
LTM Collections / GBV EoP - Italy - Stock	2.0%	2.1%	1.9%	(0.1%)	(5%)
Staff FTE / Total FTE Group	40%	38%	43%	1.6%	4%
LTM Collections / Servicing FTE - Italy	2.28	2.30	2.02	(2.4%)	(1%)
EBITDA	72,887	27,463	116,649	45,424	165%
Non-recurring items (NRIs) included in EBITDA	(3)	(8,200)	(10,869)	8,197	(100%)
EBITDA excluding non-recurring items	72,890	35,663	127,518	37,227	104%
EBITDA Margin	29%	17%	28%	12.1%	73%
EBITDA Margin excluding non-recurring items	29%	22%	30%	7.1%	33%
Profit (loss) for the period attributable to the shareholders of the Parent Company	8,547	(18,406)	(30,407)	26,953	(146%)
Non-recurring items included in Profit (loss) for the period attributable to the Shareholders of the Parent Company	(4,993)	(10,313)	(47,550)	5,320	(52%)
Profit (loss) for the period attributable to the Shareholders of the Parent
Company excluding non-recurring items	13,540	(8,093)	12,044	21,633	n.s.
Earnings per share (Euro)	0.11	(0.23)	(0.38)	34.1%	(146%)
Earnings per share excluding non-recurring items (Euro)	0.17	(0.10)	0.15	27.3%	n.s.
Capex	7,040	9,340	19,735	(2,300)	(25%)
EBITDA - Capex	65,847	18,123	96,914	47,724	n.s.
Net Working Capital	131,192	102,149	123,331	29,043	28%
Net Financial Position	(387,794)	(396,683)	(410,556)	8,889	(2%)
Leverage (Net Debt / EBITDA LTM PF)	2.4x	2.0x	2.6x	n.a.	n.a.

¹⁾ In order to enhance the comparability of Gross Book Value (GBV) as of 6/30/2020 the values for doValue Greece have been included at the reference date

D&A related to Purchase Price Allocation

• Every time the company completes an acquisition, the positive difference between purchase price and net equity of the target company is allocated to:
  • Tangible/Intangible Assets
  • Goodwill
• In the context of the acquisition of FPS and AAM the company has booked:
  • Goodwill of €124m related to AAM
  • Goodwill of €112m related to FPS
  • Intangibles of €193m related to AAM (mostly contracts)
  • Intangibles of €215m related to FPS (contracts)
• Intangible depreciate on the basis of the curve of expected profitability (i.e. nonlinear amortization) both over the business plan period and across the year
• Goodwill undergoes each year an impairment test (no write-off up until now)
• doValue adopts a safe approach allocating most of the value of its acquisitions to asset which depreciate in a predictable way
• No D&A or intangibles are booked for contracts acquired in the context of regular business development activities with no upfront payment (i.e. no M&A)

Tax assets

Tax assets mostly originated from 2015 UCCMB transaction (ex doValue)

Consolidated Tax Assets derive c. 60% from Italy and rest from Spain

▪ DTAs (Loss Carry forward)

• Can be used to off-set future direct taxes, subject to future profitability of
• To be fully exploited through future profit generation

▪ DTAs (Net Write-down):

• Can be used to off-set future direct taxes, with no maturity, starting from
• C DTAs on temporary differences and others

Disclaimer

This presentation and any materials distributed in connection herewith (together, the "Presentation") do not constitute or form a part of, and should not be construed as, an offer for sale or subscription of or solicitation of any offer to purchase or subscribe for any securities, and neither this Presentation nor anything contained herein shall form the basis of, or be relied upon in connection with, or act as an inducement to enter into, any contract or commitment whatsoever. The information contained in this Presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, reasonableness or correctness of the information or opinions contained herein. None of doValue S.p.A., its subsidiaries or any of their respective employees, advisers, representatives or affiliates shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this Presentation. The information contained in this Presentation is provided as at the date of this Presentation and is subject to change without notice.

Statements made in this Presentation may include forward-looking statements. These statements may be identified by the fact that they use words such as "anticipate", "estimate", "should", "expect", "guidance", "project", "intend", "plan", "believe", and/or other words and terms of similar meaning in connection with, among other things, any discussion of results of operations, financial condition, liquidity, prospects, growth, strategies or developments in the industry in which we operate. Such statements are based on management's current intentions, expectations or beliefs and involve inherent risks, assumptions and uncertainties, including factors that could delay, divert or change any of them. Forward-looking statements contained in this Presentation regarding trends or current activities should not be taken as a representation that such trends or activities will continue in the future. Actual outcomes, results and other future events may differ materially from those expressed or implied by the statements contained herein. Such differences may adversely affect the outcome and financial effects of the plans and events described herein and may result from, among other things, changes in economic, business, competitive, technological, strategic or regulatory factors and other factors affecting the business and operations of the company. Neither doValue S.p.A. nor any of its affiliates is under any obligation, and each such entity expressly disclaims any such obligation, to update, revise or amend any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this Presentation. It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of full-year results.

Certification of the financial reporting officer

Elena Gottardo, in her capacity as the 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 presentation is consistent with the data in the accounting documentation, books and other accounting records.

Investor relations contacts

Alberto Goretti Head of Investor Relations Tel.: +39 02 83460127 Email: investorrelations@dovalue.it