Preliminary Financial Results Full Year 2018

11th February 2019

Summary

Financial results FY2018 vs FY2017	Gross Collections: €1.96bn vs €1.84bn in 2017 (+7%), on the back of new GBV mandates  Gross Revenues: €234m, +9% vs €214m in 2017, with stable base and performance fees   Net Revenues: €210m, +8% vs €193m in 2017 EBITDA excluding NRI1: €84m vs €70m in 2017 (+20%), margin up from 33% to 36%  Net Income excluding NRI1: €53m vs €45m in 2017 (+17%), Net Income at €51m (+13%)   Net Cash Position: €68m post dividend payment, supported by positive NWC trends and limited cash taxes due to use of DTAs; Cash conversion (EBITDA-Capex) at 93%
Main events in 2018	 Consolidation of leadership in home market via large portfolio wins:  >€15bn new mandates and >€13bn already on-boarded with visible in collections Selective approach toward mandates with better pricing terms, supporting profitability  2018-2020 Business Plan and Altamira acquisition reshaping doBank's fundamentals   De-banking process going ahead and expected to be completed by early Q2 '19 Progress in Greek and UTP markets with additional portfolios expected in 2019  M&A market presents further opportunities in Italy and Southern Europe, within the  targeted leverage (<3x Net Debt/EBITDA)
What's next Notes:	 Growing markets: confirmed outlook shared at the June '18 BP presentation, with opportunities in Southern Europe (portfolio sales, outsourcing deals and platform sales)  Several active processes, doBank already benefiting from a broader client/market base to be exploited in the wider region  Plan execution: continued focus on cost efficiency and operational excellence, with IT platform migration to be completed by H1 '19 as planned and HR efficiency plan confirmed Updated mid-term targets and details on Altamira Acquisition synergies to be released post  acquisition closing
1. at	Excluding Non Recurring Items (start-up costs for Greece and UTP and part of the costs of the acquisition of Altamira Asset Management); 2018 EBITDA reported €81.3m, 2018 Net Income reported at €50.9

Continued execution towards a larger and stronger doBank

	2016 A	2018 A	2018 PF Altamira	Highlights
GBV (€bn)	81	+1% 82	137	Significant share of Italy's most important NPL mandates and entry into Europe's highest potential markets
Revenues (€m)	206	+14% 234	489	Volume growth, resilient pricing, improving collection rates and higher diversification
EBITDA ex NRI (€m) (% margin)	64 31%	+31% 84 36%	179 37%	Operating leverage and continued focus on cost control, driven by IT excellence
Product mix	NPL, UTP 100%	NPL, UTP 100%	REO 15% NPL, UTP 85%	Higher diversification while maintaining an asset light and focused approach
Weight of top 3 clients	91%	72%	59%	Largest client now accounting for ~20% of GBV. doBank working with some of the largest banks and investors in Europe
Weight of Italy AUM	100%	98%	60%	Exporting Italy's success into similar markets while drastically reducing macro risk

Organic revenue growth, profitability expansion and M&A opportunities

Italy update: supportive environment continues

Macro in line with expectations	  	doBank planning assumptions in line with current market consensus for very limited 2019 GDP growth Real estate indicators still pointing to positive liquidity and pricing momentum Moderate but continued progress in the reduction of court timing bodes well for the future	Italian Real Estate Pricing Trend1 266 264 262 260 258 256 254 252 250 248 Dec-12 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Sep-15 Dec-15 Mar-16 Sep-16 Dec-16 Sep-17 Dec-17 Sep-18 Dec-18 Mar-13 Jun-13 Mar-15 Jun-15 Jun-16 Mar-17 Jun-17 Mar-18 Jun-18
		2018: EBA guidance (5% NPE ratio), calendar provisioning on new NPE flows and BoI significant banks driving a proactive approach to NPEs and need for specialized servicers	guidance for less
Supportive regulatory push		2019: ECB draft SREP requirement letters recommending to increase coverage on both stock and flow of new NPEs in the medium-term
		2019: possible GACS extension in Italy, with potential to include UTP

Main deals planned and in pipeline, not including structured deals (stock, flow and platform)

GBV (€bn)	Details	SELLER	GBV (€bn)	Details
6.0	NPL secured and unsecured, secondary transaction		1.8	Mixed portfolio
4.2	Mixed portfolio		1.5	Mixed portfolio
3.0	Project "Sandokan Bis"	REV	1.5	Mixed portfolio
2.6	Project "Merlino"		1.0	Mixed portfolio
2.3	NPL unsecured		0.7	Mixed portfolio
2.0	Mixed portfolio	Others	>5

Notes:

Source: Bloomberg. Index=100 in Dec. 1996, latest value 263 in Dec. 2018
Source: press and EY report "The Italian NPEs market", Jan 2019

Solid deal pipeline²

Greece update: ideally positioned to benefit from market growth

Market update and doBank ambition

Continued commitment by banks to complete deleverages plan and tangible investor interest
doBank in discussion with main players in the local NPE ecosystem
Competitive scenario developing in line with expectations, supportive of doBank ambitions
€1.8bn Solar Project completed the business planning phase and has just started the loan management phase
2019 growth based on a mix of new flows into Solar Platform, new mandates in the market and M&A options

Greek banks' deleverage plan

NPE €bn

Deal Pipeline update

2018: sales of mostly unsecured and retail portfolios
2019: mix shift towards SME secured and two possible structured deals (stock, flow and platform):
NBG: €1.6bn secured SME
Piraeus: €0.8bn secured + €0.9bn unsecured
NBG: €1bn secured +€0.7bn unsecured
Eurobank: €2.5bn mortgage
Alphabank: two projects to come to market
…

Group 2018-2020E guidance confirmed

Growth in UTP and Greece GBV
Improved collection efficiency
Collection rate >2.6% in 2020
Collections/Servicing FTEs >€2.8m
Ancillary revenues expansion
Deployment of operating leverage and strict cost control, enabled by IT investments in management platform
Cash flow conversion (EBITDA-Capex) >90% and dividend payout >65% of consolidated ordinary net income
Consolidated leverage up to ~3x net debt/EBITDA

Notes: 1. EBITDA excluding Non Recurring Items (start-up costs for Greece and UTP and part of the costs of the acquisition of Altamira Asset Management); EBITDA at €81.3m in 2018 (35% EBITDA margin)

2. Financial Review

Key financial highlights

			2017	2018	∆ (%)
e s u r n e e v	Largest servicing portfolio in the Italian market	GBV EoP	€76.7bn	€82.2bn	+7.1%	 €13.2bn new servicing mandates on boarded progressively in 2018  €1.2bn inflows from existing clients
v ri e d R	Best-in-class collections	Gross collections	€1.8bn	€2.0bn	+6.8%	Stronger H2 due to seasonality of  collections, as expected
	Visible revenue base	Gross revenues	€213.5m	€233.5m	+9.3%	 Significant volume growth and resilient average fees
L & e	Operating leverage	Operating costs	€123.3m €128.3m		+4.1%	 IT and SG&A efficiencies, higher HR cost as expected  Fixed HR costs at 85% of total HR costs
r P u e ct pl u r m st Si		EBITDA ex NRI1	€70.1m	€84.0m	+19.8%	 Tangible evidence of operating leverage with a 20% expansion of EBITDA and EBITDA margin at 36%
	Proven profitability	EBITDA1 margin	32.8%	36.0%	+3.2 p.p.	 Reported EBITDA at €81.3m (35% EBITDA margin)
		Net income ex NRI1	€45.0m	€52.6m	+17.0%	 Including €0.9m (pre-tax) gain from BCC GeCre 45% stake sale to Iccrea
n o h ti a s r	Limited capex	Cash conversion2	€63.5m	€75.9m	+19.0%	93% cash conversion rate2   Most of IT and other investments expensed at income statement
a e C n e g	Benefits from tax assets	Tax Assets	€94.0m	€81.4m	(13%)	 Tax assets fully off-settable against direct and indirect taxes
	Notes:

Excluding Non Recurring Items (start-up costs for Greece and UTP)
EBITDA-Capex

Evolution of gross book value under management

Strong growth in GBV to €82bn driven by new servicing mandates, confirming #1 position in Italian market
REV, Berenice, MPS, BP Ragusa, Project "Milano" and minor portfolios progressively on-boarded during the period
Greek mandate with systemic banks and €2.4 of new business to be on-boarded in the first quarter of 2019 (ICCREA and Project Riviera of Carige)

Portfolio composition: large, diversified, secured, corporate

GBV Composition

YE 2018

guarantees & other

Loan Profile 2018

# of Claims	618k
Loan Size	€133k
% "Large" Loans (> €500k GBV)	54%
% Corporate	71%
% Northern/Central Italy	68%

Improving diversification :
Banks at 29% of GBV (60% at IPO)
Investors at 71% of GBV (40% at IPO)
No relevant client overlap with Altamira Asset Management expected to materially improve GBV diversification post deal closing
Intrum/Intesa transaction to reduce GBV by approx. €2bn in Q1 2019 offset by indemnity fees. Impact on collections already visible in Q4 '18 due to reduced activity
Portfolio maintains its highly secured profile, with dominance of corporate, mid to large size loans

Seasonality of collections across quarters

Italfondiario collections for 2016 are accounted for as net cash flow consistent with their historical reporting
Stock GBV excludes new servicing mandates on-boarded progressively in 2018, not yet fully reflected in collections of the period

Ancillary and other revenues

Ancillary and other revenues well above IPO target for 2019YE
Data remediation contracts completed on non-captive portfolios and on new GACS
Several due diligence closed in 4Q18 (e.g. BAMI process and others)
Judicial management progressing towards its run rate, only one year after start of operations
Others include Greek branch revenues for €3.2m, which represents cost reimbursement by the local banks

From gross to net revenues

Focus on operating expenses

NWC and net financial position

2018 Cash flow trend

Significant net cash flow generation driven by growth in EBITDA and reduction in Net Working Capital
Low capex needs and limited cash taxes support a Free Cash Flow generation of €66m, converting 81% of reported EBITDA
Organic cash flow generation deployed to reward investors with industry-leading dividend yields and to invest in M&A in an accretive and financially prudent transaction

Condensed consolidated income statement FY2018

Condensed consolidated income statement		Year	Year	Change
		2018	2017	Amount	%
Serv icing rev enues		205,539	194,746	10,793	6%
Co-inv estment rev enues		911	665	246	37%
Ancillary and other rev enues		27,054	18,136	8,918	49%
Gross Revenues		233,504	213,547	19,957	9%
Outsourcing fees		(23,910)	(20,141)	(3,769)	19%
Net revenues		209,594	193,406	16,188	8%
Staff expenses		(94,054)	(83,391)	(10,663)	13%
Administrativ e expenses		(34,246)	(39,913)	5,667	(14)%
Operating expenses		(128,300)	(123,304)	(4,996)	4%
EBITDA		81,294	70,102	11,192	16%
EBITDA Margin		35%	33%	2%	6%
Non-recurring items included in EBITDA	(2,712)		-	(2,712)	n.s.
EBITDA excluding non-recurring items	84,006		70,102	13,904	20%
EBITDA Margin excluding non-recurring items	36%		33%	3%	10%
Impairment/Write-backs plant, equipment and intangible on property, assets		(2,750)	(2,284)	(466)	20%
isions for risks Net Prov and charges		(318)	(4,041)	3,723	(92)%
Net Write-downs of loans		876	1,776	(900)	(51)%
Net income (losses) from inv estments		917	2,765	(1,848)	(67)%
EBIT		80,019	68,318	11,701	17%
Net financial interest and commissions		198	(184)	382	n.s.
EBT		80,217	68,134	12,083	18%
for Income tax the year		(29,362)	(22,750)	(6,612)	29%
Profit (loss) from group of assets sold and held for sale net of tax		-	(390)	390	(100)%
Net Profit (Loss) attributable to the Group		50,855	44,994	5,861	13%
Non-recurring items included in Profit (Loss) attributable Net to the Group	(1,784)		-	(1,784)	n.s.
Net Profit (Loss) attributable to the Group excluding non-recurring items	52,639		44,994	7,645	17%
Earnings per share (Euro)		0.65	0.58	0.07	13%
Earnings per share excluding non-recurring items (Euro)	0.67		0.58

Condensed consolidated balance sheet FY2018

			Change
Condensed balance sheet	12/31/2018	12/31/2017	€	%
Cash and liquid securities	74,443	50,364	24,079	48%
Financial assets	36,312	25,960	10,352	40%
Equity inv estments	-	2,879	(2,879)	(100)%
Tangible assets	2,810	2,772	38	1%
Intangible assets	8,327	6,041	2,286	38%
Tax assets	87,356	103,941	(16,585)	(16)%
Trade receiv ables	99,224	99,337	(113)	(0)%
Assets on disposal	710	10	700	n.s.
Other assets	7,855	6,196	1,659	27%
Total assets	317,037	297,500	19,537	7%

Financial liabilities: due to customers	-	11,759	(11,759)	(100)%
Trade payables	21,848	21,072	776	4%
Tax Liabilities	10,174	6,105	4,069	67%
Employee Termination Benefits	9,577	10,360	(783)	(8)%
Prov ision for risks and charges	20,754	26,579	(5,825)	(22)%
Liabilities associated with non-current assets and disposal groups held for sale	6,532	-	6,532	n.s.
Other liabilities	15,362	14,928	434	3%
Total Liabilities	84,247	90,803	(6,556)	(7)%
Share capital	41,280	41,280	-	n.s.
Reserv es	140,901	120,700	20,201	17%
Treasury shares	(246)	(277)	31	(11)%
Result for the period	50,855	44,994	5,861	13%
Total shareholders' equity	232,790	206,697	26,093	13%
Total liabilities and shareholders' equity	317,037	297,500	19,537	7%

Consolidated cash flow FY 2018

Cash Flow	12/31/2018	12/31/2017
EBITDA	81,294	70,102
Capex	(5,408)	(6,557)
EBITDA-Capex	75,886	63,545
as % of EBITDA	93%	91%
Adjustment for accrual on share-based incentiv e system payments	5,814	2,195
Changes in NWC	889	1,055
in assets/liabilities Changes other	(6,471)	6,666
Operating Cash Flow	76,118	73,461
paid (IRES/IRAP) Tax	(10,480)	(1,170)
Free Cash Flow	65,638	72,291
(Inv estments)/div estments in financial assets	(8,035)	(12,509)
Equity (inv estments)/div estments	2,610	1,694
Div idend paid	(30,907)	(52,330)
Net Cash Flow of the period	29,306	9,146

Net financial Position - Beginning of period	38,605	29,459
Net financial Position - End of period	67,911	38,605
in Financial Position Change Net	29,306	9,146

Key Performance Indicators FY 2018

Key performance indicators	12/31/2018	12/31/2017
Gross Book Value (Eop) - in millions of Euro -	82,179	76,703
Collections for the period - in millions of Euro -	1,961	1,836
Collections for the Last Twelv e Months (LTM) - in millions of Euro -	1,961	1,836
Collections/GBV (EoP) LTM	2 4%	2 4%
Collections Stock/GBV Stock (EoP) LTM	2 .5%	2 4%
Staff FTE/Total FTE	37%	37%
Collections/Serv icing LTM FTE	2,668	2,510
Cost/Income ratio	61%	64%
EBITDA	81,294	70,102
Non-recurring items	(2,712)	-
excluding non-recurring items EBITDA	84,006	70,102
EBT	80,217	68,134
Margin EBITDA	35%	33%
Margin excluding non-recurring items EBITDA	36%	33%
Margin EBT	34%	32%
Earning per share (Euro)	0 65	0 .58
Earning excluding non-recurring items (Euro) per share	0 67	0 .58
EBITDA – Capex	75,886	63,545
Net Working Capital	77,376	78,265
Net Financial Position of cash/(debt)	67,911	38,605

Regulatory capital

Excess capital to support business growth through M&A and investments as well as to remunerate investors

Tax assets

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 doBank 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 doBank 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

Mauro Goatin, in his 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 press release is consistent with the data in the accounting documentation, books and other accounting records.

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