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Dovalue

Earnings Release Mar 30, 2021

4145_agm-r_2021-03-30_584ed380-887c-45eb-822a-2d3d534a9d5c.pdf

Earnings Release

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Informazione
Regolamentata n.
1967-17-2021
Data/Ora Ricezione
30 Marzo 2021
19:22:12
MTA
Societa' : doValue S.p.A.
Identificativo
Informazione
Regolamentata
: 144478
Nome utilizzatore : DOVALUEN05 - Franchi
Tipologia : 1.1; 3.1; 2.2
Data/Ora Ricezione : 30 Marzo 2021 19:22:12
Data/Ora Inizio
Diffusione presunta
: 30 Marzo 2021 19:22:13
Oggetto : APPROVAL OF DRAFT FINANCIAL
RESOLUTIONS
STATEMENTS FOR 2020 AND OTHER

Testo del comunicato

Confirming the preliminary results disclosed on February 25, 2021, The Board of Directors of doValue S.p.A. ("doValue" or the "Group") today approved the financial statements, which will be submitted to the approval of the Shareholders' Meeting, and the consolidated financial statements at December 31, 2020.

Press release

BOARD OF DIRECTORS

APPROVAL OF DRAFT FINANCIAL STATEMENTS FOR 2020 AND OTHER RESOLUTIONS

Key consolidated figures and other KPIs as of 31 December 2020 compared to 2019 restated:

  • Portfolio under management of €158 billion (gross book value), +20% as compared with €132 billion in 2019;
  • New servicing agreements awarded for €13.0 billion: €8.6 billion (Gross Book Value) from new mandates and €4.4 billion from long-term management contracts ("forward flow agreements"), exceeding the FY20 guidance;
  • Gross revenues of €418.2 million, up +15% compared with €363.8 million in 2019;
  • Net revenues of 368.1 million, up +14% compared with 323.7 million in 2019;
  • EBITDA excluding non-recurring items amounted to €125.3 million, compared with € 140.4 million at the end of 2019; EBITDA margin excluding non-recurring items came to 30% (39% in 2019);
  • Net profit attributable to shareholders excluding non-recurring items equal to €20.8 million, improving significantly from the €3.5 million as of 30 September 2020;
  • Net financial position (net debt) of €410.6 million, increased as compared with €236.5 million posted at the end of 2019 to include the debt incurred for the acquisition of the Greek servicer FPS, now doValue Greece, for an amount of €265m and the transitory impact of the purchase of mezzanine notes for co-investment for approximately €21 million; operating cash flow1 generation at approximately €120 million, with a cash conversion rate of 105% on EBITDA Reported and free cash flow at €87 million;
  • Pro forma2 leverage (net financial position as a ratio of EBITDA) equal to 2.7x, compared with 1.3x at the end of 2019, in line with expectations and reflecting the acquisition of doValue Greece reduced already at the end of February due to the sale of certain co-investments notes; Pro forma EBITDA excluding non-recurring items for 2020 equal to €153 million.

***

1 Operating cash flow equal to: EBITDA minus Capex minus changes in NWC and changes in other assets/liabilities

2 Pro forma to include the effects of the acquisitions of Altamira Asset Management and FPS (now doValue Greece)

Rome, March 30, 2021 – Confirming the preliminary results disclosed on February 25, 2021, The Board of Directors of doValue S.p.A. ("doValue" or the "Group") today approved the financial statements, which will be submitted to the approval of the Shareholders' Meeting, and the consolidated financial statements at December 31, 2020.

As from the second half of 2020, doValue's income statements reflects the consolidation of Eurobank Financial Planning Services (now doValue Greece), the acquisition of which was completed at the beginning of June 2020.

In 2020, doValue posted Gross Revenues of €418.2 million, up +15% compared with €363.8 million in 2019, reflecting the contribution of the Group's acquisitions, Altamira Asset Management, consolidated since July 2019, and doValue Greece, consolidated since June 2020.

Revenues from servicing NPL, UTP and REO assets, which represent the core business of doValue and account for 92% of consolidated revenues, amounted to €383.8 million up +18% compared with €325.9 million in 2019. Altamira Asset Management and doValue Greece significantly contributed to the Group's diversification, adding approximately €101 million in Real Estate servicing revenues in the period and allowing the Group to expand more in the servicing of Early Arrears and Unlikely-to-Pay loans.

2020 marked a significant improvement in the base fee component of gross revenues, at 36% of total as compared with 22% in 2019, function of the greater exposure of earnings to markets such as Spain, Portugal, Greece and Cyprus, with base fees in excess of 10-15 basis points on GBV, as compared with approximately 5 basis points in Italy. This positive trend is, therefore, to be considered structural. The recently acquired doValue Greece continued to outpace expectations, on the back of positive results in loan restructuring and an above-average proportion of base fees.

Revenues from co-investments and revenue from ancillary products and minor activities equal to €34.5 million were down 9% compared with 2019, amounting to 8% of revenues, compared with 10% in 2019. The decline in the proportion of revenues from ancillary products compared with 2019 reflects the full contribution of Altamira Asset Management, which performs real estate asset servicing as its primary activity, which is not classified under ancillary products.

Net revenues amounted to €368.1 million in 2020, up 14% compared with 2019 (€323.7 million).

Operating expenses amounted to €253.7 million (€195.9 million in 2019) and include non-recurring items of about €10.9 million, reported mostly under general expenses. Non-recurring items are mainly linked to the acquisition of doValue Greece (including the transactions costs related to the financing) and the reverse merger of doValue Greece Holding into doValue Greece.

The trend in operating expenses compared with 2019 is a consequence of the greater scope of consolidation of the Group. Excluding this factor, operating expenses showed a decline of 20%, on the back of a number of efficiency measures in place, state aid to labour costs in Italy and due to a reduction of HR variable costs, from 14% of total HR cost in full-year 2019 to 6% in 2020. IT expenses benefited from the back-office partnership with IBM and real estate cost decreased due to a lesser use of office and co-working spaces, measures that, to a degree, will continue to reflect positively on the Group's cost base also in the future.

EBITDA before non-recurring items amounted to €125.3 million, as compared with €140.4 million in 2019 (-11%), with continued sequential growth from €41 million in the third quarter to € 49 million in the fourth quarter of 2020. As a percentage of gross revenues, EBITDA before non-recurring items

came to 30%, as compared with 39% in 2019. Including non-recurring items recorded in the period, which are discussed above, EBITDA would be €114.3 million (€127.8 million in 2019).

Net profit before non-recurring items amounted to 20.8 million down 60% compared with 51.9 million in 2019. Net profit was impacted by higher financial charges (€19.5 million) and amortization of contracts (€38.6 million), both linked to the acquisition of doValue Greece and Altamira Asset Management and the related bond financing.

Net working capital amounted to €123.3 million, down slightly on the end of 2019 (€130 million) in spite of the expansion of the scope of consolidation with the inclusion of doValue Greece. This dynamic reflects better terms of payments at doValue Greece level and a continuous shift of revenues from banking customer to professional investors at group level.

Net financial position was a negative €410.6 million at the end of 2020, in line with September 2020 and increasing as compared with the end of 2019, when it was a negative €236.5 million, to include the debt incurred for the acquisition of doValue Greece for an amount of €265 million and the transitory impact of the purchase of mezzanine notes as co-investment for approximately €21 million. Net financial position was at €389 million as of February 2021 end following the sale of the abovementioned mezzanine notes.

Pro-forma leverage, expressed by the ratio between net debt and EBITDA, is at 2.7x, based on a proforma EBITDA €153 million, compared with 1.3x at the end of December 2019.

Deferred tax assets amounted to €94.7 million, up slightly compared with the end of 2019 (€90.7 million) due to contribution of doValue Greece and despite the reversal of previous tax losses.

Asset under management

doValue's portfolio under management at the end of 2020 was equal to €158 billion (gross book value), improving by +20% as compared with €132 billion 2019, on the back of the acquisition of doValue Greece and the on-boarding of new mandates for €8.6 billion.

During the year, the Group has onboarded more than €8.6 billion of new contracts, with the inclusion of new bank and new investor customers in all the main markets among which a new contract for the management of a multi-originator UTP portfolio and a new agreement for the real-estate and credit management of non-performing asset originated by leasing contracts. On top of this, the portfolio under management benefitted from €4.4 billion of new inflows from existing long-term flow agreements.

When including committed contracts yet to be on-boarded (namely Marina and Icon projects) for €3.2 billion, inflows from new business amounted to €11.8 billion and the portfolio under management would be €161 billion. New contracts are in the course of being signed since the beginning of 2021.

Collections, curings and sales performed at group level amounted to €4.3 billion in total for the Group, supported by progressively normalizing trends in the third and fourth quarter of the year and by positive trends in the Hellenic Region. Collection trends for the year are in line with doValue management's initial assessment of the COVID impact, despite the presence of multiple waves of restrictions to economic activity and free movement of people, imposed by Governments to manage the pandemic.

FINANCIAL RESULTS OF doValue S.p.A. SEPARATE FINANCIAL STATEMENTS

The board of Directors has also approved the financial statements for the fiscal year 2019 of the group parent company doValue S.p.A., which reported net revenues equal to €129.0 million (€193.9 million in 2019), EBITDA equal to €29.7 million (€69.2 million in 2019), and Net Income, after taxes and excluding non-recurring items, equal to €15.5 million (€56.9 million in 2019).

DIVIDEND PROPOSAL

In lights of the liquidity position of the Group, even after COVID, and also considering improving business conditions following COVID vaccine deployment, the Board of Directors has resolved to propose to the Shareholders' Meeting the distribution of dividends for €20.8 million, corresponding to 100% of consolidated net income excluding non-recurring items (100% pay-out). Dividend per each ordinary share, net of treasury shares corresponding to 0.814% of share capital, would be equal to €0.2623 .

The dividend distribution will be preceded by a verification on the absence of any impedimental stemming from the compliance with the terms of the Senior Facility Agreement (covenant). The aforesaid verification will be carried out by the Board of Directors which will disclose the outcome of it by August 4, 2021.

The dividend, pending approval by the Shareholder's Meeting and the above-mentioned verification, will be payable as of August 9, 2021 (with ex-dividend date on August 5, 2021 and record date on 6 August, 2021).

SIGNIFICANT EVENTS AFTER CLOSE OF THE PERIOD. DISCLOSURE ON THE TAX ASSESSMENT RELATED TO THE SUBSIDIARY ALTAMIRA ASSET MANAGEMENT

The Company disclosed the following significant events occurred after the closure of the period and which the Company has specifically defined as inside information.

In the context of a tax inspection conducted by the Spanish Tax Authorities on Altamira Asset Management Holding ("AAMH"), legal entity used by the previous shareholders of AAM and not part of doValue Group, Altamira Asset Management ("AAM") for fiscal years 2014 and 2015, AAM has been informed by Spanish officials of a different approach by the Spanish Tax Authorities in the calculation of the tax base compared to the one followed by the company at the time based on the existing legislation, mainly regarding the fiscal deductibility of expenses and financial charges incurred by AAM and AAMH following the acquisition of AAM by AAMH.

As part of the above-mentioned tax inspection, new risk profiles have come out in the estimate of past tax liabilities of AAM, potentially subject to penalties applicable by the Spanish tax authorities, which only in March 24, 2021, following a discussion among AAMH, AAM and the Spanish tax authorities, doValue was able to quantify in terms of financial and economic impact.

In this respect, the Spanish tax authorities has shown willingness to reach an agreement to completely settle the tax liabilities without interests or penalties which would entail an overall cash-out of approximately €34 million (the "Agreement").

The Agreement is subject to certain conditions, including a satisfactory outcome of the tax inspection which would entail: (a) an official response by the Tax authority in the next days; (b) the formalization of the settlement proposal by the Tax authority, which could be issued on April 2021; (c) the opinion

3 Gross of witholding taxes

of the "Officina Tecnica – a higher administrative Spanish authority – on the settlement proposal which could be issued by May 2021.

On the financial and economic impacts of this event, these circumstances have led doValue to increase the provision already booked for the abovementioned tax inspection with an impact of €29.2 million on the income statement 2020 (€25.2 million as higher tax charges and €4.0 million as additional financial charges on tax arrears). Both items have been earmarked as non-recurring items in the consolidated accounts since they refer to exceptional events occurred before the acquisition of AAM by doValue.

doValue points out that, although the formalization of a settlement has not been completed, AAM has deemed the Agreement as represented above in its best interest and the amount of booked provisions adequate to face entirely any liability arising by the tax inspection for 2014 and 2015 as well as consequent recalculations of the tax base for the period 2016-2019.

All of the above tax contingencies originate from the structure originally put in place in 2013 and 2014 for the acquisition of AAM by the previous shareholders (Apollo, CCPIB and Adia). At the time of its acquisition of AAM from AAMH, doValue protected the risk from contingent liabilities, including tax liabilities, by obtaining representations and warranties from the seller and complementing them with a specific insurance coverage. Therefore, against of the overall amount related to the tax inspection abovementioned, doValue will claim a full indemnity from the insurance policy underwritten at the time of the acquisition and any other contractual protection. Further analysis of the matter, also supported by specific legal advisors, support recovery of these cash-outs by way of indemnities, whose impact on P&L will be registered as a windfall gain when they will be paid by the insurance or the seller as prescribed by IAS.

The cash-out expected in 2021 related to the settlement of the tax inspection is funded by an adequate level of available cash and does not entail any critical issue for the maintenance of existing financial covenants.

OUTLOOK FOR OPERATIONS

The servicing market in Southern Europe continues to be vibrant, with banking institutions eager to accelerate their asset quality projects ahead of the expected increase in default rates, and doValue was able to secure new mandates already in January and February 2021.

Servicing activities for complex, secured assets rely on a number of public services, in particular an efficient legal system that our clients, banks and investors, utilize to satisfy their claims in a timely fashion. As flagged during the course of 2020, the COVID pandemic caused a significant reduction of most of those services especially in the March-May full lockdown period, with a recovery beginning in June. Such recovery continued in the third and fourth quarter of 2020, supporting improving trends in collections and, subsequently, profitability and cash flow generation. At present, however, despite the continued signs of improvement, the efficiency levels of legal systems and other public services across Southern Europe are not yet at pre-pandemic levels.

Other factors to monitor in the short-term, in a benign medium-term backdrop for the industry, which is looking at significant volume of new servicing opportunities from investors, banks and governmental agencies, are the extensions of debt relief measures such as loan moratoria, currently still active in most of Southern Europe and planned to expire by end of 1H21.

Positive trends in business development, progressively improving collections and a conservative approach to the cost base are expected to continue supporting doValue's profitability and cash flow generation, in a context of a sound balance sheet and low leverage, important defensive features in the present context.

OTHER RESOLUTIONS OF THE BOARD OF DIRECTORS

During today's meeting the board of directors has also approved:

  • the illustrative reports and proposals on Remuneration policies according to art. 123 ter od D.lgs 24 february 1998, n. 58 and art. 84 quarter of CONSOB regulations n. 11971/1999 and and the 2021 Incentive Plan based on financial instruments according to art. 84 bis and table 7 of the annex 3a of the regulation issued with Consob resolution of 14 May 1999 n. 11971 as amended pursuant art. 114 bis of Dlgs 24 February 1998 n. 58;
  • Proposal for Authorization to purchase and dispose of treasury shares and operate on them, following revocation of the resolution of authorization passed by the Ordinary Shareholders' Meeting on 26 May 2020) of the agenda of the shareholders' meeting of 29 April 2021 and consequent resolutions In this respect it is recalled that the Ordinary Shareholders' Meeting had already resolved in 26 May 2020 the authorization to purchased treasury shares for a timeframe of 18 months, which the company has not exercised. Consequently, following revocation of the previous authorization, the company intends to submit to the Shareholders' meeting a new authorization proposal with the same terms and conditions;
  • Report on corporate governance and ownership structure according to art. 123 bis of D. Lgs 24 February 1998 n. 58;
  • Non-financial statement according to D.lgs 254/2016 as of 31.12.2020.

The illustrative reports related to today's board of directiors resolutions and related to items 2 and 3 are made available today in the company headquarters upon appointment, on the company's website www.dovalue.it in the section "Governance", and in the platform "eMarket Storage", managed by Spafid Connect S.p.A. e available on .

***

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

The Annual Report as at December 31, 2020 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".

***

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, spin-offs, capital increases through the contribution of assets in kind, acquisitions and sales.

Webcast conference call

The results for 2020 will be presented on Wednesday, March 31, at 10:30 in a conference call held by the Group's top management.

The conference call can be followed via webcast by connection to the company's website at www.dovalue.it or the following URL: https://87399.choruscall.eu/links/dovalue210319.html

As an alternative to the webcast, it will be possible to participate in the conference call by calling one of the following numbers:

ITALY: +39 02 805 88 11 UK: +44 121 281 8003 USA: +17187058794

The presentation by the top management will be available as from the start of the conference call on the company's website www.dovalue.it in the Investor Relations section.

doValue S.p.A.

doValue, formerly doBank S.p.A., is the leading operator in Southern Europe in credit management and real estate services for banks and investors. Present in Italy, Spain, Portugal, Greece and Cyprus, doValue has more than 20 years of industry experience and manages assets of approximately €160 billion (gross book value) with around 3,200 employees of an integrated range of services: special servicing of NPLs, UTPs, early arrears and performing positions, real estate servicing, master servicing, data processing and provision and other ancillary services. doValue is listed on the MTA (Mercato Telematico Azionario) operated by Borsa Italiana S.p.A. and, including the acquisition of Altamira Asset Management and doValue Greece, recorded preliminary gross revenues in 2020 of about €418 million and an EBITDA ex non-recurring items of about €125 million.

Contact info

Image Building Investor Relations – doValue S.p.A. Simona Raffaelli – Emilia Pezzini [email protected] [email protected] 06 47979154

doValue

RECLASSIFIED INCOME STATEMENT

,
C
12/31/2020 12/31/2019
RESTATED
Change € Change %
Servicina Revenues: 383.790 325.890 57.900 18%
o/w: NPE revenues 316.150 268.059 48.091 18%
o/w: REO revenues 67.640 57.831 9.809 17%
Co-investment revenues 429 564 (135) (24)%
Ancillary and other revenues 34.024 37.385 (3.361) (9)%
Gross revenues 418.243 363.839 54.404 15%
NPEOutsourcing fees (22.147) (19.854) (2.293) 12%
REO Outsourcing fees (17.407) (12.675) (4.732) 37%
Ancillary Outsourcing fees (10.608) (7.628) (2.980) 39%
Net revenues 368.081 323.682 44.399 14%
Staff expenses (172.921) (133.658) (39.263) 29%
Administrative expenses (80.813) (62.258) (18.555) 30%
Total"o.w. IT" (26.440) (20.297) (6.143) 30%
Total "o.w. Real Estate" (5.484) (5.193) (291) 6%
Total"o.w. SG&A" (48.889) (36.768) (12.121) 33%
Operating expenses (253.734) (195.916) (57.818) 30%
EBITDA 114.347 127.766 (13.419) $(11)\%$
EBITDA margin 27% 35% $(8)\%$ (22)%
Non-recurring items included in EBITDA 1 (10.928) (12.676) 1.748 (14)%
EBITDA excluding non-recurring items 125.275 140.442 (15.167) (11)%
EBITDA margin excluding non-recurring items 30% 39% (9)% (22)%
Net write-downs on property, plant, equipment and intangibles (62.638) (63.008) 370 (1)%
Net provisions for risks and charges (11.272) (10.732) (540) 5%
Net write-downs of loans 162 815 (653) (80)%
Profit (loss) from equity investments (2) (2) n.s.
EBIT 40.597 54.841 (14.244) (26)%
Net income (loss) on financial assets and liabilities measured at fair value (3.729) 1.091 (4.820) n.s.
Financial interest and commissions (23.416) (7.459) (15.957) n.s.
EBT 13.452 48.473 (35.021) (72)%
Non-recurring items included in EBT 2) (25.461) (23.664) (1.797) 8%
EBT excluding non-recurring items 38.913 72.138 (33.225) (46)%
Income tax for the period (36.596) (23.987) (12.609) 53%
PROFIT (LOSS) FOR THE PERIOD (23.144) 24.486 (47.630) n.s.
Profit (loss) for the period attributable to Non-controlling interests 1.201 (3.061) 4.262 (139)%
PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS OF
THE PARENT COMPANY
(21.943) 21.425 (43.368) n.s.
Non-recurring items included in Profit (loss) for the period (47.872) (30.850) (17.022) 55%
O.w. Non-recurring items included in Profit (loss) for the period attributable to Non-controlling interest (5.122) (391) (4.731) n.s.
Profit (loss) for the period attributable to the Shareholders of the Parent Company
excluding non-recurring items 20.807 51.884 (31.077) $(60)$ %
Profit (loss) for the period attributable to Non-controlling interests excluding non-recurring items 3.921 3.921 n.s.
Earnings per share (in Euro) (0, 28) 0,27 (0, 5) n.s.
Earnings per share excluding non-recurring items (Euro) 0.26 0.66 (0, 40) (60)%

$\frac{1}{2}$ Non-recurring items in Operating expenses include the costs connected with the acquisition of Altamira Asset Management S.A., of do Value Greece (ex Eurobank Financial Planning Services), those incurred for the

2) Non-recurring items included below EBITDA refer mainly to (i) termination incentive plans that have therefore been reclassified from personnel expenses, (ii) financial expenses
related to the Altamira's tax claim, (ii

CONSOLIDATED BALANCE SHEET

€'000

12 /3 1/2 0 2 0 12 /3 1/2 0 19
RESTATED
Cha nge
Amount
Cha nge %
Cash and liquid securities 132.486 128.162 4.324 3 %
Financial assets 70.859 48.609 22.250 46%
Property, plant and equipment 36.176 23.904 12.272 51%
Intangible assets 577.460 289.585 287.875 99%
Tax assets 117.909 98.554 19.355 20%
Trade receivables 175.155 176.991 (1.836) (1)%
Assets held for sale 3 0 10 2 0 n.s.
Consolidation differences to be allocated - - - n.s.
Other assets 16.485 14.378 2.107 15%
TOTAL ASSETS 1.12 6 .5 6 0 7 8 0 .19 3 3 4 6 .3 6 7 44%
Financial liabilities: due to banks 543.042 364.627 178.415 49%
Other financial liabilities 83.162 69.642 13.520 19%
Trade payables 51.824 46.969 4.855 10%
Tax Liabilities 105.549 28.170 77.379 n.s.
Employee Termination Benefits 16.341 8.544 7.797 91%
Provision for risks and charges 55.110 30.305 24.805 82%
Liabilities held for sale - - - n.s.
Other liabilities 65.872 25.196 40.676 n.s.
TOTAL LIABILITIES 9 2 0 .9 0 0 5 7 3 .4 5 3 3 4 7 .4 4 7 6 1%
Share capital 41.280 41.280 - n.s.
Reserves 145.162 144.219 943 1%
Treasury shares (103) (184) 8 1 (44)%
Profit (loss) for the period attributable to the Shareholders of
the Parent Company (21.943) 21.425 (43.368) n.s.
NET EQUITY ATTRIBUTABLE TO THE
SHAREHOLDERS OF THE PARENT COMPANY 16 4 .3 9 6 2 0 6 .7 4 0 (4 2 .3 4 4 ) (2 0 )%
TOTAL LIABILITIES AND NET EQUITY
ATTRIBUTABLE TO THE SHAREHOLDERS OF THE
PARENT COMPANY 1.0 8 5 .2 9 6 7 8 0 .19 3 3 0 5 .10 3 39%
NET EQUITY ATTRIBUTABLE TO NON- CONTROLLING
INTERESTS
41.264 - 41.264 n.s.
TOTAL LIABILITIES AND NET EQUITY 1.12 6 .5 6 0 7 8 0 .19 3 3 4 6 .3 6 7 44%

doValue

CONSOLIDATED CASH FLOW

€'000

12/31/2020 12/31/2019
RESTATED
EBITDA 114.347 127.766
Capex (19.735) (8.352)
EBITDA-Capex 94.612 119.414
as % of EBITDA 83% 93%
Adjustment for accrual on share-based incentive system payments 3.098 5.926
Changes in NWC (Net Working Capital) 15.645 22.397
Changes in other assets/liabilities 6.555 (23.031)
Operating Cash Flow 119.910 124.706
Tax paid (IRES/IRAP) (15.324) (12.370)
Financial charges (17.807) (6.950)
Free Cash Flow 86.779 105.386
(Investments)/divestments in financial assets (24.938) (10.807)
Equity (investments)/divestments (234.057) (356.878)
Dividend paid (1.875) (42.264)
Net Cash Flow of the period (174.091) (304.563)
Net financial Position - Beginning of period (236.465) 68.098
Net financial Position - End of period (410.556) (236.465)
Change in Net Financial Position (174.091) (304.563)

KEY PERFORMANCE INDICATORS

€'000

C H A N GE
KPIs 12 /3 1/2 0 2 0 12 /3 1/2 0 19
RESTATED
%
Gross Book Value (EoP) - Group¹⁾ 157.686.703 157.600.134 86.569 0%
Gross Book Value (EoP) - Italy 78.435.631 78.796.103 (360.472) (0%)
Collections of the period - Italy 1.386.817 1.893.198 (506.381) (27%)
LTM Collections - Italy 1.386.817 1.893.198 (506.381) (27%)
LTM Collections - Italy - Stock 1.349.089 1.794.339 (445.250) (25%)
LTM Collections / GBV EoP - Italy - Overall 1,8% 2,4% (0,6%) (26%)
LTM Collections / GBV EoP - Italy - Stock 1,9% 2,5% (0,6%) (25%)
Staff FTE / Totale FTE Group 43% 38% 4,9% 13%
LTM Collections / Servicing FTE - Italy 2,0 2,6 (54,6%) (21%)
EBITDA 114.347 127.766 (13.419) (11%)
Non-recurring items (NRIs) included in EBITDA (10.928) (12.676) 1.748 (14%)
EBITDA excluding non-recurring items 125.275 140.442 (15.167) (11%)
EBITDA M argin 27% 35% (7,8%) (22%)
EBITDA M argin excluding non-recurring items 30% 39% (8,6%) (22%)
Profit (loss) for the period attributable to the
shareholders of the parent company
(21.943) 21.425 (43.368) n.s.
Non-recurring items included in Profit (loss) for the
period attributable to the Shareholders of the Parent
Company
(42.750) (30.459) (12.291) 40%
Profit (loss) for the period attributable to the
Shareholders of the Parent Company excluding non
recurring items
20.807 51.884 (31.077) (60%)
Earnings per share (Euro) (0,28) 0,27 (55,0%) n.s.
Earnings per share excluding non-recurring items (Euro) 0,26 0,66 (39,6%) (60%)
Capex 19.735 8.086 11.649 144%
EBITDA - Capex 94.612 119.680 (25.068) (21%)
Net Working Capital 123.331 130.022 (6.691) (5%)
Net Financial Position (410.556) (236.465) (174.091) 74%
Leverage (Net Debt / EBITDA LTM PF) 2,7x 1,3x n.a. n.a.

¹⁾ In orde r to e nha nc e the c ompa ra bility of Gross Book Va lue (GBV) a s of 12/31/2019 the va lue s

for doValue Greece have been included at the reference date

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