Investor Presentation • May 13, 2020
Investor Presentation
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3 What's next: FPS closing, finalization of REO project in Italy and Greece, capitalize on the growing servicing opportunity in Southern Europe
Notes: 1. Excluding Non Recurring Items (costs linked to Group reorganization process and the acquisition of Altamira Asset Management); 2. Italy 1Q19 EBITDA excluding the ca. €8m one-off indemnity fee related to part of the IntesaSanPaolo portfolio no longer under management
expiry as market reopens
doValue footprint and low-risk business model position it ideally to take advantage of next NPE wave
Notes: 1: NPL flows of a sample of top Italian banks, sourced from company data and sector reports; 2020E and 2021E illustrative scenario based on trend seen in 2008 financial crisis.
| 1Q19 | 1Q20 | ∆ (%) | |||
|---|---|---|---|---|---|
| e s u er n e v v ri e d R |
GBV EoP | €83.2bn | €134.8 | +62% | ▪ GBV under management at €136bn including the recently awarded portfolio in Spain |
| Positive trend in forward flows, no portfolio sales by ▪ |
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| Gross collections | €403m | €892m | +121% | clients Higher collection rates in markets ex-Italy, due to ▪ shorter collection timing |
|
| ▪ Base fees at 37% of revenues |
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| L & e r P u e ct pl u m |
Gross revenues | €54.4m | €84.3m | +55% | Benefits of Altamira integration more than offset ▪ the disruption caused by lockdown |
| Operating costs ex NRIs1 |
€35.0m | €54.8m | +57% | ▪ Resilient earnings, with +21% EBITDA ex NRI growth despite challenging comparison base (€8m one-off indemnity fees in 1Q19) |
|
| EBITDA ex NRI1 | €16.1m | €19.5m | +21% | ▪ Significant actions on variable and fixed costs already in place, focused on HR, outsourcing fees and SG&A |
|
| str Si |
▪ Reported 2020 EBITDA at €18m |
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| EBITDA ex NRI1 margin |
30% | 23% | - 7 p.p. |
▪ EBITDA margin +6 p.p. if one-off is excluded from 1Q19 (17% vs 23%) |
|
| Net income ex NRI1 |
€8.3m | €0.1 | n.m. | ▪ Net Income impacted by non-cash D&A charges, in line with expectations |
|
| n o h ati s er a C n e g |
Net Financial Position (cash) |
(€62.1m) | €233.0m | n.m. | ▪ About stable trend in leverage over the quarter, from 1.3x to 1.4x Net Debt/EBITDA |
| Net Debt/ PF2 EBITDA |
n.m. | 1.4x | n.m. | ▪ Growing liquidity position into April, providing further comfort to the Group's solid balance sheet |
Notes: 1: Excluding Non Recurring Items (costs linked to Group reorganization and the acquisition of Altamira Asset Management; 2: LTM Pro Forma EBITDA including the acquisition of Altamira Asset Management.
7
Notes: 1: LTM Pro Forma EBITDA including the acquisition of Altamira Asset Management.
| (€/1000) | 31/03/2020 | 31/03/2019 | Change € |
Change % |
|---|---|---|---|---|
| Servicing Revenues: | 75,377 | 48,457 | 26,920 | 56% |
| o/w: NPL revenues | 60,486 | 48,457 | 12,029 | 25% |
| o/w: REO revenues | 14,891 | - | 14,891 | n.s. |
| Co-investment revenues | 141 | 167 | (26) | (16)% |
| Ancillary and other revenues | 8,745 | 5,731 | 3,014 | 53% |
| Gross revenues | 84,263 | 54,355 | 29,908 | 55% |
| NPL Outsourcing fees | (4,869) | (3,183) | (1,686) | 53% |
| REO Outsourcing fees | (4,152) | - | (4,152) | n.s. |
| Ancillary Outsourcing fees | (2,197) | (1,012) | (1,185) | 117% |
| Net revenues | 73,045 | 50,160 | 22,885 | 46% |
| Staff expenses | (38,386) | (25,898) | (12,488) | 48% |
| Administrative expenses | (16,444) | (9,089) | (7,355) | 81% |
| Total "o.w. IT" | (5,463) | (3,349) | (2,114) | 63% |
| Total "o.w. Real Estate" | (1,199) | (1,416) | 217 | (15)% |
| Total "o.w. SG&A" | (9,782) | (4,324) | (5,458) | 126% |
| Operating expenses | (54,830) | (34,987) | (19,843) | 57% |
| EBITDA | 18,215 | 15,173 | 3,042 | 20% |
| EBITDA margin | 22% | 28% | (6)% | (23)% |
| Non-recurring items included in EBITDA⁽¹⁾ | (1,283) | (931) | (352) | 38% |
| EBITDA excluding non-recurring items | 19,504 | 16,104 | 3,400 | 21% |
| EBITDA margin excluding non-recurring items | 23% | 30% | (6)% | (22)% |
| Net write-downs on property, plant, equipment and | ||||
| intangibles | (14,994) | (1,646) | (13,348) | n.s. |
| Net provisions for risks and charges | (1,856) | (266) | (1,590) | n.s. |
| Net write-downs of loans | 50 | 84 | (34) | (40)% |
| EBIT | 1,415 | 13,345 | (11,930) | (89)% |
| Net income (loss) on financial assets and liabilities | ||||
| measured at fair value Financial interest and commissions |
(385) (2,865) |
- (115) |
(385) (2,750) |
n.s. n.s. |
| EBT | (1,835) | 13,230 | (15,065) | (114)% |
| Income tax for the period | (2,467) | (5,518) | 3,051 | (55)% |
| PROFIT (LOSS) FOR THE PERIOD | (4,302) | 7,712 | (12,014) | n.s. |
| Profit (loss) for the period attributable to Non | ||||
| controlling interests | 1,327 | - | 1,327 | n.s. |
| ATTRIBUTABLE PROFIT (LOSS) FOR THE PERIOD | (2,975) | 7,712 | (10,687) | (139)% |
| NRIs included in attributable Profit (loss) | (3,260) | (574) | (2,686) | n.s. |
| Attributable profit (loss) for the period ex NRIs |
121 | 8,286 | (8,165) | (99)% |
| Earnings per share (in Euro) | (0.04) | 0.10 | (0.1) | (138)% |
| Earnings per share NRIs(Euro) | 0.00 | 0.11 | (0.10) | (99)% |
Notes: 1: Non-recurring items in Operating expenses include the costs connected with the acquisition of Altamira Asset Management S.A. and those incurred for the Group reorganisation project
| (€/1000) | 03/31/2020 | 12/31/2019 | Change Amount |
Change % |
|---|---|---|---|---|
| Cash and liquid securities | 134,279 | 128,162 | 6,117 | 5% |
| Financial assets | 45,889 | 48,609 | (2,720) | (6)% |
| Property, plant and equipment | 25,698 | 23,904 | 1,794 | 8% |
| Intangible assets | 330,718 | 340,879 | (10,161) | (3)% |
| Tax assets | 100,255 | 98,554 | 1,701 | 2% |
| Trade receivables | 161,523 | 176,991 | (15,468) | (9)% |
| Assets held for sale |
10 | 10 | - | n.s. |
| Other assets | 15,729 | 13,578 | 2,151 | 16% |
| TOTAL ASSETS | 814,101 | 830,687 | (16,586) | (2)% |
| Financial liabilities: due to banks | 367,304 | 364,627 | 2,677 | 1% |
| Other financial liabilities | 88,056 | 92,036 | (3,980) | (4)% |
| Trade payables | 39,252 | 46,969 | (7,717) | (16)% |
| Tax Liabilities | 39,888 | 42,347 | (2,459) | (6)% |
| Employee Termination Benefits | 8,122 | 8,544 | (422) | (5)% |
| Provision for risks and charges | 23,349 | 25,669 | (2,320) | (9)% |
| Other liabilities | 23,146 | 25,196 | (2,050) | (8)% |
| TOTAL LIABILITIES | 589,117 | 605,388 | (16,271) | (3)% |
| Share capital | 41,280 | 41,280 | - | n.s. |
| Reserves | 186,863 | 145,885 | 40,978 | 28% |
| Treasury shares | (184) | (184) | - | n.s. |
| Profit (loss) for the period attributable to the | ||||
| Shareholders of the Parent Company | (2,975) | 38,318 | (41,293) | (108)% |
| NET EQUITY ATTRIBUTABLE TO THE | ||||
| SHAREHOLDERS OF THE PARENT COMPANY | 224,984 | 225,299 | (315) | (0)% |
| TOTAL LIABILITIES AND NET EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE |
||||
| PARENT COMPANY | 814,101 | 830,687 | (16,586) | (2)% |
| (€/1000) | |
|---|---|
| (€/1000) KPIs |
03/31/2020 | 03/31/2019 | |
|---|---|---|---|
| [1] | Gross Book Value (EoP) - Group | 134,816,908 | 137,175,592 |
| [2] | Gross Book Value (EoP) - Italy | 77,808,637 | 81,403,804 |
| [3] | Collections of the period - Italy | 329,785 | 403,045 |
| [4] | LTM Collections - Italy | 1,821,907 | 1,989,776 |
| [5] | LTM Collections - Italy - Stock | 1,809,140 | 1,973,616 |
| [6] | LTM Collections / GBV EoP - Italy - Overall | 2.3% | 2.4% |
| [7] | LTM Collections / GBV EoP - Italy - Stock | 2.4% | 2.5% |
| [8] | Staff FTE / Totale FTE | 35% | 38% |
| [9] | LTM Collections / Servicing FTE - Italy | 2.62 | 2.77 |
| [10] | EBITDA | 18,215 | 15,173 |
| [11] | Non-recurring items (NRIs) included in EBITDA | (1,283) | (931) |
| [12] | EBITDA excluding non-recurring items | 19,498 | 16,104 |
| [13] | EBITDA Margin | 22% | 28% |
| [14] | EBITDA Margin excluding non-recurring items Profit (loss) for the period attributable to the |
23% | 30% |
| [15] | shareholders of the parent company Non-recurring items included in Profit (loss) for |
(2,975) | 7,712 |
| [16] | the period attributable to the Shareholders of the Profit (loss) for the period attributable to the |
(3,091) | (574) |
| [17] | Shareholders of the Parent Company excluding | 121 | 8,286 |
| [18] | Earnings per share (Euro) Earnings per share excluding non-recurring items |
(0.04) | 0.10 |
| [19] | (Euro) | 0.00 | 0.11 |
| [20] | Capex | 6,647 | 805 |
| [21] | EBITDA - Capex | 11,568 | 14,368 |
| [22] | Net Working Capital | 122,274 | 83,682 |
| [23] | Net Financial Position | (233,025) | 62,125 |
| [24] | Leverage (Net Debt / EBITDA LTM PF) | 1.4x | n.a. |
1) With regard to the indicator [1], in order to enhance the comparability of the figures for 2020, the effects deriving from the acquisition of Altamira were included in the 2019 data as if this had occurred from 1 January 2019
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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.
Fabio Ruffini Investor Relations
Tel.: +39 06 4797 9154 Mail: [email protected]
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