Dovalue — Earnings Release 2023

Nov 9, 2023

Informazione Regolamentata n. 1967-72-2023		Data/Ora Inizio Diffusione 09 Novembre 2023 18:06:09	Euronext Star Milan
Societa'	:	DOVALUE
Identificativo Informazione Regolamentata	:	183133
Nome utilizzatore	:	DOVALUEN10 - Songini
Tipologia	:	REGEM
Data/Ora Ricezione	:	09 Novembre 2023 18:06:08
Data/Ora Inizio Diffusione	:	09 Novembre 2023 18:06:09
Oggetto	:	Consolidated Interim Report as of September 30th, 2023
Testo del comunicato

Vedi allegato.

PRESS RELEASE

APPROVAL OF CONSOLIDATED INTERIM REPORT AS OF SEPTEMBER 30th , 2023

GROSS REVENUES AT €335 MILLION AND EBITDA EX NRIs AT €115 MILLION

STRONG COLLECTION PERFORMANCE (UP 7.3%¹) DRIVEN BY GREECE

SOLID BALANCE SHEET, FINANCIAL LEVERAGE IN LINE WITH POLICY AT 2.9x DUE TO STRONG SEASONALITY IN 3Q

Collections and Gross Book Value (GBV)

• Collections in 9M 2023 growing by 7.3% ex Sareb
• Resilient collections at €3.4 billion with improving collection rate at 4.5% as of September 30th, 2023, growing by 0.5 p.p. compared to 9M 2022 despite challenging macro conditions and NPL volumes lower than market expectations
• Strong collections in the Hellenic Region (+25.2% Year-on-Year), thanks to good macro momentum and superior platform performance
• Minor slowdown in collections performance in Italy, broadly in line with GBV trend (-4.5% Year-on-Year)
• Collections in Iberia reflect off-boarding of Sareb and disruption in courts' activity (-46.8% Year-on-Year, +0.3% ex Sareb)
• GBV as of September 30 th, 2023, at €117.8 billion (declining marginally in the third quarter of 2023)
• Forward flows in 9M 2023 up by 53% Year-on-Year

Income Statement

• Gross Revenues at €335.2 million (-21.2% vs 9M 2022, -11.7% ex Sareb). 3Q22 included a significant indemnity fee from the disposal by Eurobank of the Mexico portfolio to a third party investor for which doValue Greece retained the servicing
• Net Revenues at €304.6 million (-19.8% vs 9M 2022, -13.3% ex Sareb)
• Cost efficiency initiatives lead to a reduction of Operating Expenses by 17%% Year-on-Year as result of the doTransformation plans both locally and at Group level
• EBITDA ex NRIs at €115.4 million (-24.0% vs 9M 2022, -16.0% ex Sareb) mainly due to strong seasonality in 3Q22, typically more pronounced in Q4
• EBITDA margin ex NRIs at 34.4%, 1.3 p.p. lower than 9M 2022
• Net Income ex NRIs of €19.3 million

Cash Flow and Balance Sheet

• Cash Flow from Operations at €38.0 million vs. €63.9 million in 9M 2022
• Overall cash flow mainly affected by dividend payment, interest coupons and tax outlays recorded in the first nine months of the year
• Solid balance sheet with moderate Financial Leverage and no refinancing needs before August 2025
• Net Debt at €485.5million as of September 30 st, 2023 (€479.0 million as of June 30th , 2023)
• Financial Leverage at 2.9x due to seasonality, expected to normalize at approximately 2.7x by year end 2023
• Ample cash position of €95.7 million (€96.7 million as of June 30th, 2023) and approximately €120m of credit lines

Guidance for 2023

• Gross Revenues at €490-500 million
• EBITDA excluding non-recurring items at €175-185 million
• Net Financial Leverage of approx. 2.7x at the end of 2023

¹ Excluding Sareb effect

Rome, November 9th, 2023 – The Board of Directors of doValue S.p.A. (the "Company", the "Group" or "doValue") has approved today the Consolidated Interim Report as of September 30 th, 2023.

Main Consolidated Results and KPIs

Income Statement and Other Data	9M 2023	9M 2022	Delta
Collections	€3,399m	€3,907m	-13.0%
Collection Rate	4.5%	4.0%	+0.5 p.p.
Gross Revenues	€335.2m	€425.5m	-21.2%
Net Revenues	€304.6m	€380.0m	-19.8%
Operating Expenses	€189.3m	€230.4m	-17.9%
EBITDA including non-recurring items	€115.3m	€149.6m	-22.9%
EBITDA excluding non-recurring items	€115.4m	€151.9m	-24.0%
EBITDA margin excluding non-recurring items	34.4%	35.7%	-1.3 p.p.
Net Income including non-recurring items	€5.7m	€39.2m	-85.3%
Net Income excluding non-recurring items	€19.3m	€45.6m	-57.7%
Capex	€9.2m	€13.7m	(€4.5m)
Balance Sheet and Other Data	30-Sept-23	31-Dec-22	Delta
Gross Book Value	€117,768m	€120,478m	-2.2%
Net Debt	€485.5m	€429.9m	+12.9%
Financial Leverage (Net Debt / EBITDA LTM ex NRIs)	2.9x	2.1x	+0.8 p.p.

Gross Book Value

In the first nine months of 2023, the Group onboarded approximately €8.7 billion of new GBV, comprised of a robust €2.6 billion from forward flows (representing a significant Year-on-Year growth of 53%) and €6.1 billion from newly acquired mandates. These new mandates span across Italy, Iberia and the Hellenic Region, contributing €0.9 billion, €0.7 billion and €4.5 billion respectively, with a growing influx of new customers further enhancing the Group's portfolio. Several transactions relate to the secondary market and were facilitated by the use of the doLook platform which is currently used across all major countries allowing the placement of €698 million of loans (GBV) in 9M 2023.

Particularly significant are the new mandates related to Italy, the majorly of which linked to UTP portfolios contributed to the Efesto Fund which benefit from superior profitability if compared to traditional NPL servicing business, and those related to the Hellenic Region, associated with Project Souq, Heliopolis and Maranello, and project Frontier II as well as the onboarding by doValue Cyprus of the Sky portfolio for a value total of approximately €2.3 billion of Non-Performing Exposures, of which €2.1 billion represent new assets under management. This confirms the Group's ability to build productive relationships and secure profitable mandates in diverse markets notwithstanding macro environment. In Spain we are seeing the positive results of the diversification strategy on new clients, including Banco Sabadell and CaixaBank, and new products including early in arrears contributing €700 mln of flows in 9 months 2023.

As of September 30, 2023, the Gross Book Value (GBV) stands at €117.8 billion, decreasing marginally compared to December 31, 2022. This performance reflects a weaker than anticipated second half of the year in terms of NPE creation by banks and fewer primary transactions from banks to investors. This was compensated by the proactive management strategies of the Group, where new GBV onboarded for €8.7 billion and collections for €3.4 billion partly compensated write-offs and disposals from clients, amounting to €4.1 billion and €3.9 billion respectively.

Income Statement

The operational and financial results of 9M 2023 are in line with management expectations despite a weaker than anticipated second half of the year in terms of NPLs volumes, also in light of market developments. Notwithstanding macroeconomic slowdown (driven by inflation and higher financing costs affecting both SMEs and households, coupled with a slowdown in auctions in Italy and court strikes in Spain) and a few specific exogenous factors in the early part of the year, the Group demonstrates resilience with a strong collections' performance in Greece and Spain on a proforma basis.

Collections in 9M 2023 stood at a material €3.4 billion, and, when excluding the Sareb portfolio, increased by 7.3% compared to 9M 2022. This trajectory is all the more significant if compared to the corresponding GBV evolution. Collections in Italy are remained solid at €1.2 billion, while the Hellenic Region showed a significant increase to €1.4 billion, up 25.2% Year-on-Year. Even in Iberia, despite initial hurdles, collections were slightly higher year on year excluding Sareb.

The Collection Rate improved by 0.5 percentage points YoY to 4.5% as of September 30, 2023 with a positive trend in particular in Spain and Greece and all the more significant in light of the current macro environment for debtors.

In 9M 2023, doValue has recorded Gross Revenues for €335.2 million, a decline of 21.2% compared to the previous year (-11.7% excluding Sareb off-boarding effect).

Servicing Revenues, equal to €291.5 million in 9M 2023, show a decline of 25.3% vs 9M 2022 also as a result of the negative performance of Iberia mainly due to the Sareb portfolio off-boarding and the interruption of activity by Spanish courts due to strikes, as well as by the slower activity in Italy, and the effect of an indemnity received in Q3 2022 in the Hellenic Region related to the Mexico portfolio. The decline in Servicing Revenues was more pronounced in the REO segment (-37.8% Year-on-Year), considering the importance of the REO activity related to the Sareb contract and the trend of real estate prices in Spain, than to the NPE segment (-22.9% Year-on-Year).

Revenues from co-investments are equal to €1.1 million in 9M 2023, substantially in line with the €1.1 million recorded in 9M 2022. The contribution of Ancillary Revenues is €42.6 million, growing 25% against €34.1 million of 9M 2022 with a growing contribution from 8.0% to 12.7% of Total Gross Revenues.

Outsourcing Fees for servicing business have decreased both in absolute terms (by 33.0%) and as a percentage of Gross Revenues (from 10.7% in 9M 2022 to 9.1% in 9M 2023) reflecting the insourcing of some business processes, in particular in Italy, which allow to efficiently deploy the current available workforce capacity, and a different revenue mix (the activity performed on the Sareb portfolio comprised an above average outsourcing activity related to REO business).

Net Revenues, equal to €304.6 million, have declined by 19.8% compared to €380.0 million in 9M 2022, which however benefitted from the Mexico indemnity fee.

Operating Expenses were reduced by 33.8% YoY to €47.5 million for 9M 2023 (€71.9 million in 9M 2022). HR costs were reduced by 10.6% YoY to €141.8 million mainly driven by the FTE reduction in Iberia (mostly related to the post-Sareb restructuring program completed in June 2023 with full run-rate effects from 2024) and one-off effect of release of provisions related to the LTI plan of the previous CEO.

EBITDA excluding non-recurring items declined by 24.0% to €115.4 million (from €151.9 million in 9M 2022), with a marginal decrease in margin of 1.3 p.p., from 35.7% to 34.4% mainly as a result of the Sareb offboarding and the unfavourable comparison with 9M 2022 which saw a significant margin uplift from a disposal indemnity in 3Q 2022, whereas historically most disposals occur in 4Q. EBITDA ex. non-recurring items, excluding Sareb off-boarding, decreased by 16.0%.

Net profit excluding non-recurring items stands at €19.3 million in 9M 2023, compared to a positive result of €45.6 million in 9M 2022. The decline is primarily related to the lower in EBITDA.

Including non-recurring items, Net Income stands at €5.7 million, compared to a positive result of €39.2 million in 9M 2022. The non-recurring items included below the EBITDA for 9M 2023 mainly refer to provisions for redundancies for approx. €11.2 million (related mostly to Sareb). The redundancy costs sustained in Spain in 9M 2023 will enable annual run rate savings of €6.4 million.

Cash Flow and Balance Sheet

Cash flow from Operations showed a positive trend in 9M 2023, standing at €38.0 million, compared to the €63.9 million recorded in 9M 2022. The variation reflects the lower EBITDA, negative change in Other Assets & Liabilities mainly related to personnel redundancy costs, lease payments and taxes. Capex was €9.2m (vs. €13.7m in 9M 2022) and mainly focused on IT and Transformation plan.

As of September 30th, 2023, Net Debt stood at €485.5 million, marginally up from the €479.0 million recorded at the end of June 2023 mainly driven by the dividend distribution to minorities in Greece, interest payments in 3Q and income taxes in Greece.

Net Debt to LTM EBITDA excluding non-recurring items, was at 2.9x as of September 30th, 2023, up from 2.4x as of June 30th, 2023 mainly as a result of seasonality effects on LTM EBITDA and of certain movements in working capital that will reverse in 4Q23 leading to a net debt/EBITDA of approximately 2.7x expected at the end of 2023.

The Financial Leverage remains within the 2.0-3.0x target range as specified in the Business Plan 2022-2024. This positioning supports doValue's conservative balance sheet management strategy, promoting financial stability and resilience.

In addition, as of September 30th, 2023, doValue has a solid liquidity position of €95.7 million of cash on its balance sheet and approximately €120.0 million of credit lines. In Q2 2023, doValue strategically used excess cash to repurchase outstanding doValue senior secured notes on the open market for a nominal amount of about €5 million. These notes were subsequently cancelled, leading to a reduction in gross debt and financial charges, further enhancing the company's financial health. Moreover, it actively invested its cash to improve interest income given growing yields in the market.

Update on business activity

Since the beginning of 2023, doValue has been active on several fronts. A summary of all the main initiatives and key mandates is shown below.

• ESG upgraded: in March 2023, MSCI ESG Research has upgraded the Group's MSCI ESG rating from "AA" to "AAA". MSCI ESG Research measures a company's resilience to environmental, social and governance (ESG) risks on a long-term horizon. The upgrades by MSCI ESG Research and Moody's Analytics are a tangible example of doValue's commitment in adopting best practices in the interest of its stakeholders, in particular clients, capital providers (equity holders and bond holders), employees, and the broader social and environmental ecosystem in which the Company operates. Moreover, in July Moody's Analytics upgraded doValue's ESG rating from "Limited" to "Robust".
• Project Souq: in February 2023, doValue completed a €630 million GBV secondary portfolio disposal in Greece to Intrum. The portfolio has been carved out from the Cairo I and Cairo II HAPS securitisation vehicles, which have been managed by doValue since their creation. The collection performance in Greece has accelerated (it received a Collection fee in Q1 2023) obtaining the long-term servicing mandate on the dismissed portfolio.
• Fino 1 GACS securitisation: in January 2023, thanks to the strong performance of doValue in the management of the securitisation Fino 1, in the context of which the GACS guarantee was granted by the Italian Ministry of Economy and Finance, the Class A senior notes of this securitisation have been repaid.
• Efesto Fund: between December 2022 and January 2023, the Efesto Fund has received commitments for UTP contributions for an aggregate amount of €1.1 billion (partially already onboarded as of March 31st , 2023), including sizeable commitments from two primary Italian banks.
• doValue Spain Put Option: the expiry date of the put option on the minority interest of 15% in doValue Spain was extended from the end of June 2023 to September 2023. The notification of the exercise of the put option was received on September 29th, 2023.
• New business in Spain: doValue Spain has significantly increase the number of new customers and mandates adding new business for €0.7 billion GBV. Although relatively small in terms of size, some of the contracts are linked to innovative products (early arrears, SMEs in Spain) and are a testament of a new business strategy development aimed at diversifying more the business with smaller mandated following the loss of Sareb.

Significant events after the end of the period

• Share buy-back Programme: On October 9th , 2023, doValue S.p.A. announced the initiation, as from October 10, 2023, of its share buyback programme for a maximum amount of 2,000,000 shares to restore the own shares reserve to service the share-based incentive plan for the Group's management.
• doValue Spain Put option: following the notification received last September 29th for the exercise of the sale option, the Company has formalized the repurchase of the minority stake equal to 15% on October 24th , 2023.

Outlook

In 2023, the Group will pursue the goals of its 2022-2024 Business Plan, leveraging on the results achieved in 2022 and on the effectiveness and operational efficiency resulting from the implementation of the doTransformation program.

In particular, it is expected that:

• activities in Italy will continue in line with 2022, with collections expected to decline slightly year-on-year, in line with trend in GBV impacted by macro factors, revenues supported by new business and progress on cost efficiency initiatives to offset the lower volumes managed;

• activities in the Hellenic Region will be sustained by an acceleration of collections also driven by potential disposals of portfolios on the secondary market on behalf of customers, which should lead to a stable margin year-on-year;
• activities in Iberia will fully reflect the expiry of the Sareb contract and the off-boarding of the related portfolio completed in October 2022, partially offset by the reduction in costs deriving from the reorganisation of the Spanish activities, which has already seen effects in the second half of 2022, and that will deliver run-rate savings from 2024.

***

Webcast conference call

The financial results for 9M 2023 will be presented on Friday, November 10th, 2023, at 10:30 am CEST 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/dovalue231110.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
• USA, toll free (help line): +1 855 2656957

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 (Testo Unico della Finanza) – that the accounting information in this press release is consistent with the data in the accounting documentation, books and other accounting records.

The Consolidated Interim Report as of September 30 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 €120 billion of assets under management (Gross Book Value) 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. With its 2,800 employees, doValue offers an integrated range of services: management of Non-Performing Loans (NPL), Unlikely To Pay (UTP), Early Arrears, and 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 2022, the Group reported Gross Revenues of €558 million and EBITDA excluding non-recurring items of €202 million.

Contacts

Image Building doValue Media Relations Investor Relations Raffaella Casula (+39 348 306 7877) Simonetta Caglioti (+39 02 89011300) dovalue@imagebuilding.it investorrelations@dovalue.it

CONDENSED INCOME STATEMENT (€ '000)

Condensed Income Statement	9/30/2023	9/30/2022	Change €	Change %
Servicing Revenues:	291,498	390,305	(98,807)	(25.3)%
o/w: NPE revenues	251,623	326,188	(74,565)	(22.9)%
o/w: REO revenues	39,875	64,117	(24,242)	(37.8)%
Co-investment revenues	1,064	1,141	(77)	(6.7)%
Ancillary and other revenues	42,592	34,083	8,509	25.0%
Gross revenues	335,154	425,529	(90,375)	(21.2)%
NPE Outsourcing fees	(10,692)	(16,111)	5,419	(33.6)%
REO Outsourcing fees	(7,256)	(19,514)	12,258	(62.8)%
Ancillary Outsourcing fees	(12,569)	(9,891)	(2,678)	27.1%
Net revenues	304,637	380,013	(75,376)	(19.8)%
Staff expenses	(141,751)	(158,580)	16,829	(10.6)%
Administrative expenses	(47,551)	(71,871)	24,320	(33.8)%
Total o.w. IT	(19,604)	(25,578)	5,974	(23.4)%
Total o.w. Real Estate	(3,801)	(5,161)	1,360	(26.4)%
Total o.w. SG&A	(24,146)	(41,132)	16,986	(41.3)%
Operating expenses	(189,302)	(230,451)	41,149	(17.9)%
EBITDA	115,335	149,562	(34,227)	(22.9)%
EBITDA margin	34%	35%	(1)%	(2.1)%
Non-recurring items included in EBITDA	(79)	(2,357)	2,278	(96.6)%
EBITDA excluding non-recurring items	115,414	151,919	(36,505)	(24.0)%
EBITDA margin excluding non-recurring items	34.4%	35.7%	(1.3)%	(3.5)%
Net write-downs on property, plant, equipment and intangibles	(48,228)	(47,919)	(309)	0.6%
Net provisions for risks and charges	(15,474)	(7,317)	(8,157)	111.5%
Net write-downs of loans	1,207	265	942	n.s.
EBIT	52,840	94,591	(41,751)	(44.1)%
Net income (loss) on financial assets and liabilities measured at fair value	1,586	(1,170)	2,756	n.s.
Net financial interest and commissions EBT	(23,614) 30,812	(21,279) 72,142	(2,335) (41,330)	11.0% (57.3)%
Non-recurring items included in EBT	(14,292)	(8,490)	(5,802)	68.3%
EBT excluding non-recurring items	45,104	80,632	(35,528)	(44.1)%
Income tax for the period	(20,037)	(22,984)	2,947	(12.8)%
Profit (Loss) for the period	10,775	49,158	(38,383)	(78.1)%
Profit (loss) for the period attributable to Non-controlling interests	(5,033)	(9,977)	4,944	(49.6)%
Profit (Loss) for the period attributable to the
Shareholders of the Parent Company	5,742	39,181	(33,439)	(85.3)%
Non-recurring items included in Profit (loss) for the period	(14,708)	(6,849)	(7,859)	114.7%
O.w. Non-recurring items included in Profit (loss) for the period
attributable to Non-controlling interest	(1,153)	(400)	(753)	n.s.
Profit (loss) for the period attributable to the
Shareholders of the Parent Company excluding non
recurring items	19,297	45,630	(26,333)	(57.7)%
Profit (loss) for the period attributable to Non-controlling
interests excluding non-recurring items	6,186	10,377	(4,191)	(40.4)%
Earnings per share (in Euro)	0.07	0.50	(0.42)	(85.4)%
Earnings per share excluding non-recurring items (Euro)	0.24	0.58	(0.33)	(57.7)%

CONDENSED BALANCE SHEET (€ '000)

Condensed Balance Sheet	9/30/2023	12/31/2022	Change €	Change %
Cash and liquid securities	95,667	134,264	(38,597)	(28.7)%
Financial assets	52,374	57,984	(5,610)	(9.7)%
Property, plant and equipment	52,410	59,191	(6,781)	(11.5)%
Intangible assets	500,735	526,888	(26,153)	(5.0)%
Tax assets	115,127	118,226	(3,099)	(2.6)%
Trade receivables	158,902	200,143	(41,241)	(20.6)%
Assets held for sale	16	13	3	23.1%
Other assets	55,471	29,889	25,582	85.6%
Total Assets	1,030,702	1,126,598	(95,896)	(8.5)%
Financial liabilities: due to banks/bondholders	581,179	564,123	17,056	3.0%
Other financial liabilities	115,750	120,861	(5,111)	(4.2)%
Trade payables	48,282	70,381	(22,099)	(31.4)%
Tax liabilities	62,833	67,797	(4,964)	(7.3)%
Employee termination benefits	8,582	9,107	(525)	(5.8)%
Provisions for risks and charges	32,940	37,655	(4,715)	(12.5)%
Other liabilities	48,358	75,754	(27,396)	(36.2)%
Total Liabilities	897,924	945,678	(47,754)	(5.0)%
Share capital	41,280	41,280	-	n.s.
Reserves	42,590	83,109	(40,519)	(48.8)%
Treasury shares	(4,006)	(4,332)	326	(7.5)%
Profit (loss) for the period attributable to the Shareholders of the Parent
Company	5,742	16,502	(10,760)	(65.2)%
Net Equity attributable to the Shareholders of the Parent Company	85,606	136,559	(50,953)	(37.3)%
Total Liabilities and Net Equity attributable to the Shareholders of
the Parent Company	983,530	1,082,237	(98,707)	(9.1)%
Net Equity attributable to Non-Controlling Interests	47,172	44,361	2,811	6.3%
Total Liabilities and Net Equity	1,030,702	1,126,598	(95,896)	(8.5)%

CONDENSED CASH FLOW (€ '000)

Condensed Cash flow	9/30/2023	9/30/2022	12/31/2022
EBITDA	115,335	149,562	198,708
Capex	(9,160)	(13,733)	(30,833)
EBITDA-Capex	106,175	135,829	167,875
as % of EBITDA	92%	91%	84%
Adjustment for accrual on share-based incentive system payments	(4,761)	4,810	5,557
Changes in Net Working Capital (NWC) (*)	(10,269)	(26,950)	(15,137)
Changes in other assets/liabilities	(53,175)	(49,771)	(74,697)
Operating Cash Flow	37,970	63,918	83,598
Corporate Income Tax paid	(19,961)	(25,368)	(44,042)
Financial charges	(23,329)	(20,200)	(27,146)
Free Cash Flow	(5,320)	18,350	12,410
(Investments)/divestments in financial assets	2,285	2,428	3,664
Dividends paid to minority shareholders	(5,000)	(5,002)	(5,002)
Dividends paid to Group shareholders	(47,618)	(36,763)	(39,140)
Net Cash Flow of the period	(55,653)	(20,987)	(28,068)
Net financial Position - Beginning of period	(429,859)	(401,791)	(401,791)
Net financial Position - End of period	(485,512)	(422,778)	(429,859)
Change in Net Financial Position	(55,653)	(20,987)	(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 €29.4 as at Sept-23; €19.5m in Sept-22 and €17.9m in Dec-22

ALTERNATIVE PERFORMANCE INDICATORS

KPIs	9/30/2023	9/30/2022	12/31/2022
Gross Book Value (EoP) - Group	117,768,420	137,343,130	120,478,346
Collections of the period - Group	3,398,809	3,906,556	5,494,503
LTM Collections / GBV EoP - Group - Stock	4.5%	4.0%	4.1%
Gross Book Value (EoP) - Italy	68,710,519	72,481,364	72,031,038
Collections of the period - Italy	1,163,734	1,218,305	1,707,403
LTM Collections / GBV EoP - Italy - Stock	2.5%	2.6%	2.5%
Gross Book Value (EoP) - Iberia	11,230,354	26,405,149	11,650,908
Collections of the period - Iberia	835,620	1,570,705	1,965,314
LTM Collections / GBV EoP - Iberia - Stock	9.6%	6.7%	9.2%
Gross Book Value (EoP) - Hellenic Region	37,827,547	38,456,618	36,796,401
Collections of the period - Hellenic Region	1,399,455	1,117,546	1,821,787
LTM Collections / GBV EoP - Hellenic Region - Stock	7.0%	5.0%	6.1%
Staff FTE / Total FTE Group	42.6%	44.0%	45.0%
EBITDA	115,335	149,562	198,708
Non-recurring items (NRIs) included in EBITDA	(79)	(2,357)	(2,979)
EBITDA excluding non-recurring items	115,414	151,919	201,687
EBITDA margin	34.4%	35.1%	35.6%
EBITDA margin excluding non-recurring items	34.4%	35.7%	36.1%
Profit (loss) for the period attributable to the shareholders of the Parent Company	5,742	39,181	16,502
Non-recurring items included in Profit (loss) for the period attributable to the Shareholders of the Parent Company	(13,555)	(6,449)	(34,061)
Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding non-recurring items	19,297	45,630	50,563
Earnings per share (Euro)	0.07	0.50	0.21
Earnings per share excluding non-recurring items (Euro)	0.24	0.58	0.64
Capex	9,160	13,733	30,833
EBITDA - Capex	106,175	135,829	167,875
Net Working Capital	110,620	140,074	129,762
Net Financial Position	(485,512)	(422,778)	(429,859)
Leverage (Net Debt / EBITDA excluding non-recurring items LTM)	2.9x	1.8x	2.1x

SEGMENT REPORTING (€ '000)

(€/000)

	First Nine Months 2023
Condensed Income Statement (excluding non-recurring items)	Italy	Hellenic Region	Iberia	Total
Servicing revenues	84,383	158,939	48,176	291,498
o/w NPE Revenues	84,383	140,200	27,040	251,623
o/w REO Revenues	-	18,739	21,136	39,875
Co-investment revenues	1,064	-	-	1,064
Ancillary and other revenues	27,674	12,737	2,181	42,592
Gross Revenues	113,121	171,676	50,357	335,154
NPE Outsourcing fees	(4,893)	(3,398)	(2,401)	(10,692)
REO Outsourcing fees	-	(3,141)	(4,115)	(7,256)
Ancillary Outsourcing fees	(12,157)	-	(412)	(12,569)
Net revenues	96,071	165,137	43,429	304,637
Staff expenses	(56,006)	(54,230)	(31,515)	(141,751)
Administrative expenses	(17,283)	(15,570)	(14,619)	(47,472)
o/w IT	(6,685)	(7,153)	(5,766)	(19,604)
o/w Real Estate	(1,001)	(1,847)	(953)	(3,801)
o/w SG&A	(9,597)	(6,570)	(7,900)	(24,067)
Operating expenses	(73,289)	(69,800)	(46,134)	(189,223)
EBITDA excluding non-recurring items	22,782	95,337	(2,705)	115,414
EBITDA margin excluding non-recurring items	20.1%	55.5%	(5.4)%	34.4%
Contribution to EBITDA excluding non-recurring items	19.7%	82.6%	(2.3)%	100.0%

First Nine Months 2023 vs 2022

Condensed Income Statement (excluding non-recurring items)	Italy	Hellenic Region	Iberia	Total
Servicing revenues
First Nine Months 2023	84,383	158,939	48,176	291,498
First Nine Months 2022	105,204	190,077	95,024	390,305
Change	(20,821)	(31,138)	(46,848)	(98,807)
Co-investment revenues, ancillary and other revenues
First Nine Months 2023	28,738	12,737	2,181	43,656
First Nine Months 2022	27,416	2,681	5,127	35,224
Change	1,322	10,056	(2,946)	8,432
Outsourcing fees
First Nine Months 2023	(17,050)	(6,539)	(6,928)	(30,517)
First Nine Months 2022	(14,014)	(5,983)	(25,519)	(45,516)
Change	(3,036)	(556)	18,591	14,999
Staff expenses
First Nine Months 2023	(56,006)	(54,230)	(31,515)	(141,751)
First Nine Months 2022	(63,253)	(53,285)	(42,042)	(158,580)
Change	7,247	(945)	10,527	16,829
Administrative expenses
First Nine Months 2023	(17,283)	(15,570)	(14,619)	(47,472)
First Nine Months 2022	(20,482)	(18,705)	(30,327)	(69,514)
Change	3,199	3,135	15,708	22,042
EBITDA excluding non-recurring items
First Nine Months 2023	22,782	95,337	(2,705)	115,414
First Nine Months 2022	34,871	114,785	2,263	151,919
Change	(12,089)	(19,448)	(4,968)	(36,505)
EBITDA margin excluding non-recurring items
First Nine Months 2023	20.1%	55.5%	(5.4)%	34.4%
First Nine Months 2022	26.3%	59.5%	2.3%	35.7%
Change	(6)p.p.	(4)p.p.	(8)p.p.	(1)p.p.