Dovalue — Earnings Release 2022

Mar 23, 2023

Informazione Regolamentata n. 1967-18-2023		Data/Ora Ricezione 23 Marzo 2023 19:59:14	Euronext Star Milan
Societa'	:	DOVALUE
Identificativo Informazione Regolamentata	:	173970
Nome utilizzatore	:	DOVALUEN08 - Goretti
Tipologia	:	1.1
Data/Ora Ricezione	:	23 Marzo 2023 19:59:14
Data/Ora Inizio Diffusione presunta	:	23 Marzo 2023 19:59:16
Oggetto	:	2022 and other resolutions	Approval of draft financial statements for
Testo del comunicato

Vedi allegato.

PRESS RELEASE

APPROVAL OF DRAFT FINANCIAL STATEMENTS FOR 2022 AND OTHER RESOLUTIONS

€558 MILLION OF GROSS REVENUES, €202 MILLION OF EBITDA EX NRIs, €51 MILLION OF ATTRIBUTABLE NET INCOME EX NRIs

FINANCIAL LEVERAGE AT 2.1x

DIVIDEND PER SHARE OF €0.60 FOR THE YEAR 2022

Income Statement

• Double digit EBITDA growth in the Hellenic Region and in Italy, Iberia turnaround well advanced
• Gross Revenues in 2022 at €558.2 million (-2.4% vs 2021, or +1.5% excluding Sareb)
• Net Revenues in 2022 at €500.4 million (-1.2% vs 2021, or +2.6% excluding Sareb)
• Control of Operating Expenses (-1.7% vs 2021)
• EBITDA ex NRIs in 2022 at €201.7 million (+0.4% vs 2021, or +11.5% excluding Sareb)
• Increase of 1 p.p. in EBITDA margin ex NRIs (from 35.1% to 36.1%)
• Attributable Net Income ex NRIs in 2022 equal to €50.6 million (-0.3% vs 2021)
• Dividend per Share of €0.60 for 2022, subject to approval of Shareholders

Gross Book Value (GBV) and Collections

• GBV as of December 31 st, 2022, at €120.5 billion (-19.4% year on year, or -5.1% excluding Sareb)
• Main driver of the reduction in GBV is the offboarding of the €20.7 billion Sareb portfolio in Spain
• Approx. €12 billion of new GBV secured in 2022, notwithstanding challenging markets
• Resilient collections in 2022 at €5.5 billion (-4.3% compared to 2021, or +6.3% excluding Sareb)
• Collections trajectory year-on-year better than corresponding trajectory in GBV
• Collection Rate for 2022 at 4.1% (0.1 p.p. increase vs September 2022)
• No material impact from macro headwinds experienced on collection activity

Balance Sheet and Cash Flow

• Conservative balance sheet with moderate Financial Leverage and no refinancing needs before 2025
• Net Debt at €429.9 million as of December 31 st, 2022 (€401.8 million as of December 31 st, 2021)
• Leverage at 2.1x as of December 31 st, 2022 (vs 2.0x as of December 31 st, 2021)
• Strong cash position at €134.3 million and €133.5m of lines available and not drawn
• Capex at €30.8 million for 2022 (and aligned with business plan, and equal to €57.3 million for 2022-2023)
• Cash flow generation of €11.1 million (pre-dividend payment of €39.1 million)

Outlook for 2023

• Short to medium term pipeline of servicing mandates totalling €52 billion in Southern Europe
• Stage 2 loans levels remain elevated in a context whereby default rates are expected to increase
• Macro headwinds are expected to lead to a new wave of additional NPEs generation

Rome, March 23rd, 2023 – Confirming the preliminary financial results published on February 23rd, 2023, the Board of Directors of doValue S.p.A. (the "Company", the "Group" or "doValue") has approved today the Draft Financial Statements for the year 2022, which will be submitted to the approval of the Shareholders' Meeting, and the Consolidated Financial Report for the year which closed on December 31st, 2022.

Main Consolidated Results and KPIs

Income Statement and Other Data	2022	2021	Delta
Collections	€5,495m	€5,743m	-4.3%
Collection Rate	4.1%	4.3%	-0.2 p.p.
Gross Revenues	€558.2m	€572.1m	-2.4%
Net Revenues	€500.4m	€506.5m	-1.2%
Operating Expenses	€301.7m	€307.1m	-1.7%
EBITDA including non-recurring items	€198.7m	€199.3m	-0.3%
EBITDA excluding non-recurring items	€201.7m	€200.9m	+0.4%
EBITDA margin excluding non-recurring items	36.1%	35.1%	+1.0 p.p.
Net Income including non-recurring items	€16.5m	€23.7m	-30.5%
Net Income excluding non-recurring items	€50.6m	€50.7m	-0.3%
Capex	€30.8m	€29.6m	€1.2m

Balance Sheet and Other Data	31-Dec-22	31-Dec-21	Delta
Gross Book Value	€120,478m	€149,487m	-19.4%
Net Debt	€429.9m	€401.8m	+7.0%
Financial Leverage (Net Debt / EBITDA ex NRIs)	2.2x	2.1x	+0.1 p.p.

Gross Book Value

Since the beginning of 2022, the Group has been awarded approx. €7.4 billion of new mandates (partly not yet onboarded as of December 31 st, 2022) of which €3.0 billion in Italy, €3.9 billion in the Hellenic Region and €540 million in Iberia.

The new mandates, together with the €3.8 billion forward flows received in 2022, represent €11.2 billion of new GBV.

In addition, considering the €450 million Project Virgo and the €630 million Project Souq in Greece (secondary NPL disposals out of the Frontier, and Cairo I and Cairo II portfolios respectively, whereby doValue is retaining the servicing mandate) the total GBV secured in 2022 is to €12.3 billion.

Such results are remarkable considering the postponement to 2023 of the Ariadne project (€5.2 billion GBV portfolio in Greece).

As of December 31st, 2022, Gross Book Value stood at €120.5 billion, a decline of 19.4% compared to the level of €149.5 billion at the end of 2021 (or a decline of 5.1% excluding the €20.7 billion Sareb portfolio).

The level of Gross Book Value of €120.5 billion is the result of new GBV onboarded for €13.0 billion, collections for €5.5 billion, write offs for €8.7 billion, disposals from clients for €7.1 billion (mostly compensated by indemnity fees) and the Sareb portfolio off-boarding for €20.7 billion.

As a reminder, as of December 31st , 2022, there were €4.5 billion of new mandates already secured and not yet onboarded.

Income Statement

Collections in 2022 stood at €5.5 billion (a decline of 4.3% compared to the €5.7 billion recorded in 2021, or a growth of 6.3% excluding Sareb). The trajectory of the Collections reflects the decline in GBV, partially mitigated by a mix effect (higher GBV in the Hellenic Region, moving from 21% of total as of December 31 st, 2021, to 31% of total as of December 31st , 2022, which commands a higher Collection Rate vs Group average) as well as the progressive post-COVID recovery of court activities and the relaxation of the Government restrictions on foreclosures.

The Collection Rate is equal to 4.1% for 2022, an increase of 0.1 p.p. vs the level of September 2022. In 2022, the Collection Rate in Italy increased by 0.1 p.p., in the Hellenic Region increased by 0.1 p.p. and in Iberia increased by 2.6 p.p..

In 2022, doValue has recorded Gross Revenues for €558.2 million, a decline of 2.4% compared to the €572.1 million recorded in 2021 (or a growth of 1.5% excluding Sareb).

Servicing Revenues, equal to €510.2 million (€528.6 million in 2021), show a decline of 3.5%, mainly driven by negative performance of Iberia (decline of 29.8%, mainly due to the Sareb portfolio off-boarding) as well as by the slower activity in Italy (decline of 1.1%), partially offset by a strong performance in the Hellenic Region (growth of 14.9%). Excluding Sareb, Servicing Revenues grew by 0.6% year on year.

Revenues from Co-investments are equal to €1.5 million (whilst were equal to €8.8 million in 2021, primarily driven by the capital gain related to the Relais and Mexico transactions, completed in Q1 2021 and Q4 2021 respectively).

The contribution of Revenues from Ancillary Products is €46.6 million, a 34.7% increase compared to the €34.6 million level achieved in 2021. More broadly, these revenues include various services provided by the Group (data services, due diligence services, master and structuring services, legal activities, real estate services and advisory services), primarily in the Italian and Greek market.

Outsourcing fees have decreased both in absolute terms (by 11.8%) and as a percentage of Gross Revenues (from 11.5% in 2021 to 10.4% in 2022) partially reflecting a different revenue mix but also the insourcing of some business processes, in particular in Italy, which allow to efficiently deploy the current available workforce available capacity.

Net Revenues, equal to €500.4 million, have declined by 1.2% compared to €506.5 million in 2021 (but excluding Sareb, Net Revenues have grown by 2.6% year on year).

Operating Expenses, equal to €301.7 million for 2022 (€307.1 million in 2021) have declined by 1.7% year on year and remained stable as a percentage of Gross Revenues at 54%. The decline in Operating Expenses in absolute terms of €5.4 million is due to lower HR, SG&A and Real Estate expenses, partially offset by an increase in IT costs due to projects.

EBITDA excluding non-recurring items grew by 0.4% to €201.7 million (from €200.9 million in 2021), with an increase in margin of 1.0 p.p., from 35.1% to 36.1%. Excluding Sareb, EBITDA excluding non-recurring items grew by 11.5% year on year.

Including non-recurring items, EBITDA stood at €198.7 million, recording a decline of 0.3% compared to 2021, when it was €199.3 million. Non-recurring items above the EBITDA mainly include charges related to consultancy M&A projects for €3.0 million in 2022.

Net Income including non-recurring items stands at €16.5 million, compared to €23.7 million in 2021. The decline is primarily related to the negative impact of the earn-out payable by doValue to Eurobank for the acquisition of doValue Greece (explained in more details below), as well as higher taxes, partially compensated by the growth in EBITDA, lower D&A, lower provisions for risks and charges and lower interest expenses.

Excluding non-recurring items, Net Income stands at €50.6 million, compared to €50.7 million in 2021. The nonrecurring items included below the EBITDA for 2022 mainly refer to the earn-out payable by doValue to Eurobank for the acquisition of doValue Greece, provisions for exit incentive plans and a litigation for operating claim which was compensated by an insurance payment.

Earn-out payable by doValue to Eurobank

The strong operating and financial performance in Greece led doValue to the almost full recognition to fair value of the earn-out (due to Eurobank in relations to the acquisition of the 80% stake in FPS, now doValue Greece, completed in 2020) in its balance sheet as of December 31st, 2022, thus leading to a negative charge at income statement level of €21.6 million. Such earn-out, already disclosed to the market in 2020, at the time of the closing of the acquisition, is equal to maximum amount of €40.0 million. In terms of cash outflows, the earn-out is payable in three tranches in 2024, 2026 and 2030 (for €12.0 million, €12.0 million and €16.0 million respectively). As of December 31st, 2021, doValue had already accounted in its balance sheet this item for €5.6 million.

Balance Sheet and Cash Flow Generation

Net Debt as of December 31st, 2022, stood at €429.9 million, compared to the €401.8 million as of December 31st , 2021.

The year 2022 was characterised by €30.8 million of Capex, related to the doTransformation program, an increase of €1.2 million compared to the level of 2021. Overall, the Capex plan 2022-2023 is in line with the initial plan as presented in the Capital Markets Day in January 2022 (considering the savings achieved with suppliers, the broader review of the plan during the last twelve months and the non-renewal of the Sareb contract).

In addition, a dividend of €39.1 million was paid in 2022, a substantial growth compared to the dividend paid in 2021 of €20.7 million.

Financial Leverage (represented by the ratio between Net Debt and EBITDA excluding non-recurring items) stands as of December 31st, 2022, at 2.1x (vs 2.0x as of December 31st, 2021) due to the increase in Net Debt partially compensated by the growth in EBITDA excluding non-recurring items.

The Financial Leverage of 2.1x is at the lower end of the 2.0-3.0x target range as reiterated in the Business Plan 2022-2024, thus making the balance sheet of doValue conservative. In addition, as of December 31st, 2022, doValue had €134.3 million of cash on its balance sheet and €133.5 million of lines available and not drawn.

Separate financial statements of doValue S.p.A.

The Board of Directors has also approved the financial statements of the Group parent company doValue S.p.A. for the fiscal year 2022, which reported net revenues equal to €149.4 million (€150.5 million in 2021), EBITDA equal to €42.6 million (€35.9 million in 2021), and Net Income, after taxes and excluding non-recurring items, equal to €24.4 million (€12.3 million in 2021).

Dividends

On April 28th, 2022, the Annual General Meeting of doValue approved the dividend related to the fiscal year 2021 of €0.50 per share for a total amount of €39.5 million. The dividend was paid on May 4th, 2022 (an amount of €0.4 million was yet to be claimed by shareholders as of December 31 st, 2022).

In addition, in line with the dividend policy approved in the context of the Business Plan 2022-2024, the Board of Directors of doValue has approved to propose to Shareholders a dividend related to the fiscal year 2022 of €0.60 per share for 2022 (for a total of approximately €47.5 million, considering the current number of treasury shares owned by the Company), representing a growth of 20% over the 2021 Dividend Per Share of €0.50. The dividend, which is subject to the approval of the Shareholders' Meeting, will be paid on May 10th, 2023 (ex-dividend date on May 8th , 2023, and record date on May 9th, 2023).

Resignation of the Chief Executive Officer

On March 17th, 2023, the Board of Directors of doValue S.p.A. has communicated that, on the same day, it had been notified by the Chief Executive Officer Andrea Mangoni of the intention to offer his resignation from his role, with effective date April 27th, 2023 (the planned day for the Annual General Meeting of the Company), to take on new professional opportunities. The Board of Directors has activated the relevant internal procedures aimed at starting the succession process for the role of Chief Executive Officer. In line with the remuneration policy adopted by the Company, there are no indemnities nor benefits in relations to the cessation of the role of Chief Executive Officer. The number of shares of the Company owned by Andrea Mangoni will be communicated at the time of the effective cessation of his role as Chief Executive Officer.

Update on business activity

Since the beginning of 2022, doValue has been active on several fronts across the three regions in which it operates, below is a summary of all the main initiatives and key mandates.

• MSCI ESG Research: 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 upgrade by MSCI ESG Research is 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.
• 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 has been managed by doValue since their creation. The disposal allows doValue to accelerate its collection activity in Greece (for which it received a sale fee in Q1 2023) whilst retaining the long-term servicing mandate on the 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 Ministry of Economy and Finance, the Class A senior notes of such 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, including sizeable commitments from primary Italian banks.
• Project Nix: in October 2022, doValue granted the management of a €300 million portfolio of non-performing loans by Fortress in Spain, representing the first sizeable NPL portfolio investment of Fortress in the Spanish market after it set up its local office in Madrid in May 2022.
• Project Virgo: in October 2022, doValue completed a €450 million GBV secondary portfolio disposal in Greece to EOS Group. The portfolio has been carved out from the Frontier I HAPS securitisation vehicle which has been managed by doValue since the beginning of February 2022. The disposal allows doValue to accelerate its collection activity in Greece (for which it received a sale fee in Q4 2022) whilst retaining the long-term servicing mandate on the portfolio.
• Project Frontier II: in July 2022, doValue signed an agreement with National Bank of Greece (NBG) in relation to the management of a Greek portfolio consisting of mostly secured non-performing loans for a GBV of €1.0 billion. The agreement is subject to the completion of the securitisation process of such portfolio by NBG under the Hellenic Asset Protection Scheme (HAPS) which is expected to be finalised in the first half of 2023.
• GACS securitisations: between May and June 2022, BCC Banca Iccrea and UniCredit completed two securitisations of non-performing loans assisted by GACS guarantee for €650 million and €1.1 billion respectively. doValue assumed the role of special servicer of the two securitisations.
• Project Sky: in May 2022, doValue signed a memorandum of understanding with Cerberus for the exclusive management of a portfolio of non-performing loans originated in Cyprus with GBV of €2.2 billion. doValue will assume the servicing of the portfolio from the closing (expected for 2023) until the portfolio run-off, whilst assisting with the interim management of the portfolio until closing.

• Project Neptune: in April 2022, doValue was awarded a servicing mandate in Greece by Fortress for a portfolio of €500 million. As background, in 2020, Fortress acquired a portfolio from Alpha Bank with a GBV of approximately €1.1 billion and assigned the transitional servicing mandate to Greek servicer CEPAL. With Project Neptune, doValue assumes as long-term servicer the management of approximately 50% of the initial €1.1 billion portfolio.

• Launch of Legal Services business unit in Spain: in July 2022, doValue has formally set up a new business unit in Spain dedicated to the offering of legal services to banks and institutional investor. The initiative is in line with the plan of further growing and diversifying the portfolio of products and solutions offered by doValue to its current and prospective clients in Spain. In this context, in October 2022, doValue signed an important contract with Sareb for the provision of legal services.

• Launch of SME business unit in Spain: in June 2022, doValue has formally set up a business unit dedicated to the management of Non-performing Exposures (NPE) related to Small and Medium Enterprises (SME) in Spain. The SME business unit employs about 40 professionals and is currently managing approximately €3 billion of GBV, a level which is expected to grow over the next few quarters.
• Sareb servicing contract: at the end of February 2022, Sareb made the decision of appointing two new servicers for the 2022-2025 contract and therefore not renewing the contract with doValue and the other 3 servicers currently managing the Sareb portfolio. The decision by Sareb has triggered a reorganisation of doValue's activities in Spain aimed at operating at an adequate scale preserving the profitability of the business in Iberia. Approx. €8 million of reorganisation costs were spent in 2022 and it is expected that the overall cost will be c. €11 million (thus lower than the initially estimated amount of approx. €15 million).
• ISO Certification 37001:16: during the month of November 2022, doValue S.p.A. received the UNI ISO 37001:16 certification - Management system for the prevention of corruption - the first international standard for anti-corruption management systems. The certification, issued by Bureau Veritas - one of the most important international players in the field of certification - testifies to the constant attention and commitment of doValue in preventing all forms of corruption. The UNI ISO 3700 standard was created to offer companies and organizations advanced management standards and effective measures to prevent and address corruption, establishing a culture of integrity, transparency, and compliance.

Other resolutions of the Board of Directors

During today's meeting, the Board also approved the Non-Financial Statement drawn up pursuant to Legislative Decree 254/2016 as of December 31st, 2022.

Outlook

European Banks have gone through a significant deleveraging process since 2014, selling and securitising €585 billion euro of non-performing exposures and achieving record-low NPE ratios (EBA data as of September 2023 indicate a weighted-average NPE ratio for banks in Italy, Spain, Greece, Portugal and Cyprus in the region of 2.8%).

Having said that, the level of Stage 2 loans in Southern Europe has materially increased since pre-COVID times, and currently stands at around 9.4% with Italy, Greece and Cyprus featuring even higher levels of Stage 2 loans (at 13.1%, 12.2% and 14.1% respectively).

The pipeline of potential servicing mandates for 2022 across Southern Europe is currently estimated by doValue at approximately €52 billion (including an estimated €18 billion related to secondary transactions) and is likely to grow further in the coming quarters, in particular as the currently challenging macro-economic conditions and stress factors (inflation and interest rates in primis) are likely to lead to increased production of NPEs. Data published by third party institutions already show that corporates default rates in Italy have increased in the first part of 2022, mainly in the corporate sector, and they are expected to increase further in 2023 and 2024.

More generally, doValue activity is underpinned by exogenous and favourable medium to long-term tailwinds, including the implementation, by banks, of stringent regulations (IFRS 9, Calendar Provisioning, Basel IV) aimed at promoting a very proactive approach in managing their balance sheets, in addition to the well-established outsourcing trend by banks of servicing activities.

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 Financial Report and the Draft Financial Statements as of December 31 th , 2022, 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 3,200 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) Alberto Goretti Simonetta Caglioti (+39 02 89011300) +39 02 83460127

dovalue@imagebuilding.it investorrelations@dovalue.it

MANAGEMENT INCOME STATEMENT (€ '000)

Condensed Income Statement	2022	2021	Change €	Change %
Servicing Revenues:	510,164	528,626	(18,462)	(3)%
o/w: NPE revenues	433,538	446,097	(12,559)	(3)%
o/w: REO revenues	76,626	82,529	(5,903)	(7)%
Co-investment revenues	1,507	8,846	(7,339)	(83)%
Ancillary and other revenues	46,578	34,579	11,999	35%
Gross revenues	558,249	572,051	(13,802)	(2)%
NPE Outsourcing fees	(20,913)	(29,998)	9,085	(30)%
REO Outsourcing fees	(22,631)	(24,217)	1,586	(7)%
Ancillary Outsourcing fees	(14,285)	(11,369)	(2,916)	26%
Net revenues	500,420	506,467	(6,047)	(1)%
Staff expenses	(212,395)	(215,851)	3,456	(2)%
Administrative expenses	(89,317)	(91,269)	1,952	(2)%
Total "o.w. IT"	(33,034)	(30,183)	(2,851)	9%
Total "o.w. Real Estate"	(5,586)	(6,159)	573	(9)%
Total "o.w. SG&A"	(50,697)	(54,927)	4,230	(8)%
Operating expenses	(301,712)	(307,120)	5,408	(2)%
EBITDA	198,708	199,347	(639)	(0)%
EBITDA margin	36%	35%	1%	2%
Non-recurring items included in EBITDA	(2,979)	(1,572)	(1,407)	90%
EBITDA excluding non-recurring items	201,687	200,919	768	0%
EBITDA margin excluding non-recurring items	36%	35%	1%	3%
Net write-downs on property, plant, equipment and intangibles	(71,021)	(94,371)	23,350	(25)%
Net provisions for risks and charges	(13,963)	(25,547)	11,584	(45)%
Net write-downs of loans	493	545	(52)	(10)%
Profit (loss) from equity investments	-	83	(83)	(100)%
EBIT	114,217	80,057	34,160	43%
Net income (loss) on financial assets and liabilities measured at fair
value	(22,520)	1,071	(23,591)	n.s.
Net financial interest and commissions	(28,868)	(32,839)	3,971	(12)%
EBT	62,829	48,289	14,540	30%
Non-recurring items included in EBT	(35,901)	(33,350)	(2,551)	8%
EBT excluding non-recurring items	98,730	81,639	17,091	21%
Income tax for the period	(36,354)	(15,116)	(21,238)	141%
Profit (Loss) for the period	26,475	33,173	(6,698)	(20)%
Profit (loss) for the period attributable to Non-controlling interests	(9,973)	(9,429)	(544)	6%
Profit (Loss) for the period attributable to the Shareholders of
the Parent Company	16,502	23,744	(7,242)	(31)%
Non-recurring items included in Profit (loss) for the period	(35,494)	(29,481)	(6,013)	20%
O.w. Non-recurring items included in Profit (loss) for the period
attributable to Non-controlling interest	(1,433)	(2,504)	1,071	(43)%
Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding non-recurring items	50,563	50,721	(158)	(0)%
Profit (loss) for the period attributable to Non-controlling interests
excluding non-recurring items	11,406	11,933	(527)	(4)%
Earnings per share (in Euro)	0.21	0.30	(0.09)	(30)%
Earnings per share excluding non-recurring items (Euro)	0.64	0.64	(0.00)	(0)%

MANAGEMENT BALANCE SHEET (€ '000)

Condensed Balance Sheet	31-Dec-2022	31-Dec-2021	Change €	Change %
Cash and liquid securities	134,264	166,668	(32,404)	(19)%
Financial assets	57,984	61,961	(3,977)	(6)%
Property, plant and equipment	59,191	34,204	24,987	73%
Intangible assets	526,888	545,225	(18,337)	(3)%
Tax assets	118,226	152,996	(34,770)	(23)%
Trade receivables	200,143	206,326	(6,183)	(3)%
Assets held for sale	13	30	(17)	(57)%
Other assets	29,889	17,226	12,663	74%
Total Assets	1,126,598	1,184,636	(58,038)	(5)%
Financial liabilities: due to banks/bondholders	564,123	568,459	(4,336)	(1)%
Other financial liabilities	120,861	76,017	44,844	59%
Trade payables	70,381	73,710	(3,329)	(5)%
Tax liabilities	67,797	113,060	(45,263)	(40)%
Employee termination benefits	9,107	10,264	(1,157)	(11)%
Provisions for risks and charges	37,655	44,235	(6,580)	(15)%
Other liabilities	75,754	104,888	(29,134)	(28)%
Total Liabilities	945,678	990,633	(44,955)	(5)%
Share capital	41,280	41,280	-	n.s.
Reserves	83,109	96,299	(13,190)	(14)%
Treasury shares	(4,332)	(4,678)	346	(7)%
Profit (loss) for the period attributable to the Shareholders of
the Parent Company	16,502	23,744	(7,242)	(31)%
Net Equity attributable to the Shareholders of the Parent Company	136,559	156,645	(20,086)	(13)%
Total Liabilities and Net Equity attributable to the Shareholders of the Parent Company	1,082,237	1,147,278	(65,041)	(6)%
Net Equity attributable to Non-Controlling Interests	44,361	37,358	7,003	19%
Total Liabilities and Net Equity	1,126,598	1,184,636	(58,038)	(5)%

MANAGEMENT CASH FLOW (€ '000)

Condensed Cash flow	2022	2021
EBITDA	198,708	199,347
Capex	(30,833)	(29,640)
EBITDA-Capex	167,875	169,707
as % of EBITDA	84%	85%
Adjustment for accrual on share-based incentive system	5,557	1,027
payments Changes in NWC (Net Working Capital)	2,854	(9,285)
Changes in other assets/liabilities	(92,688)	(21,340)
Operating Cash Flow	83,598	140,109
Corporate Income Tax paid	(44,042)	(12,827)
Financial charges	(27,146)	(31,220)
Free Cash Flow	12,410	96,062
(Investments)/divestments in financial assets	3,664	(26,489)
Tax claim payment	-	(32,981)
Treasury shares buy-back	-	(4,603)
Dividends paid to minority shareholders	(5,002)	(2,502)
Dividends paid to Group shareholders	(39,140)	(20,722)
Net Cash Flow of the period	(28,068)	8,765
Net financial Position - Beginning of period	(401,791)	(410,556)
Net financial Position - End of period	(401.791) (429,859)	(401,791)
Change in Net Financial Position	(28,068)	8,765

ALTERNATIVE PERFORMANCE INDICATORS

KPIs	2022	2021
Gross Book Value (EoP) - Group	120,478,346	149,486,889
Collections of the period - Group	5,494,503	5,743,101
LTM Collections / GBV EoP - Group - Stock	4.1%	4.3%
Gross Book Value (EoP) - Italy	72,031,038	75,965,150
Collections of the period - Italy	1,707,403	1,698,356
LTM Collections / GBV EoP - Italy - Stock	2.5%	2.4%
Gross Book Value (EoP) - Iberia	11,650,908	41,523,359
Collections of the period - Iberia	1,965,314	2,726,453
LTM Collections / GBV EoP - Iberia - Stock	9.2%	6.6%
Gross Book Value (EoP) - Hellenic Region	36,796,401	31,998,380
Collections of the period - Hellenic Region	1,821,787	1,318,292
LTM Collections / GBV EoP - Hellenic Region - Stock	6.1%	6.0%
EBITDA	198,708	199,347
Non-recurring items (NRIs) included in EBITDA	(2,979)	(1,572)
EBITDA excluding non-recurring items	201,687	200,919
EBITDA margin	36%	35%
EBITDA margin excluding non-recurring items	36%	35%
Profit (loss) for the period attributable to the shareholders of the Parent Company	16,502	23,744
Non-recurring items included in Profit (loss) for the period attributable to the Shareholders of the Parent Company	(34,061)	(26,977)
Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding non-recurring items	50,563	50,721
Earnings per share (Euro)	0.21	0.30
Earnings per share excluding non-recurring items (Euro)	0.64	0.64
Capex	30,833	29,640
EBITDA - Capex	167,875	169,707
Net Working Capital	129,762	132,616
Net Financial Position Leverage (Net Debt / EBITDA LTM PF)	(429,859) 2.1x	(401,791) 2.0x

SEGMENT REPORTING (€ '000)

		Year 2022
Condensed Income Statement (excluding non-recurring items)	Italy	Hellenic Region	Iberia	Total
Servicing revenues	145,093	249,394	115,677	510,164
o/w NPE Revenues	145,094	229,892	58,552	433,538
o/w REO Revenues	(1)	19,502	57,125	76,626
UTP Servicing	-	-	-	-
Co-investment revenues	1,507	-	-	1,507
Ancillary and other revenues	35,910	3,854	6,814	46,578
Gross Revenues	182,510	253,248	122,491	558,249
NPE Outsourcing fees	(7,673)	(4,428)	(8,812)	(20,913)
REO Outsourcing fees	-	(3,819)	(18,812)	(22,631)
Ancillary Outsourcing fees	(12,816)	-	(1,469)	(14,285)
Net revenues	162,021	245,001	93,398	500,420
Staff expenses	(84,610)	(73,073)	(54,712)	(212,395)
Administrative expenses	(29,333)	(22,745)	(34,260)	(86,338)
o/w IT	(14,955)	(8,756)	(9,323)	(33,034)
o/w Real Estate	(1,594)	(2,689)	(1,303)	(5,586)
o/w SG&A	(12,784)	(11,300)	(23,634)	(47,718)
Operating expenses	(113,943)	(95,818)	(88,972)	(298,733)
EBITDA excluding non-recurring items	48,078	149,183	4,426	201,687
EBITDA margin excluding non-recurring items	26%	59%	4%	36%
Contribution to EBITDA excluding non-recurring items	24%	74%	2%	100%