Consolidated Interim Report as at September 30, 2020

Registered office: Viale dell'Agricoltura, 7 – 37135 Verona Share capital €41,280,000.00 fully paid-up

Parent Company of the doValue Group Registered in the Register of Industries of Verona, Tax I.D. no. 00390840239 and VAT registration no. 02659940239 www.doValue.it

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CERTIFICATION OF THE FINANCIAL REPORTING OFFICER

CONTENTS

Governing and control bodies

BOARD OF DIRECTORS

Chairman

CEO

Directors

BOARD OF STATUTORY AUDITORS

Chairman Standing Auditors

Alternate Auditors

AUDIT FIRM Financial Reporting Officer

Giovanni Castellaneta (2) (4) Andrea Mangoni	Chairman of the Supervisory Committee, as per Chairman of Remuneration Committee Chairman of Remuneration Committee Leg. Decree 231/2001 Member of the
	(5) (6) (7) (8)
Francesco Colasanti (6) Emanuela Da Rin Giovanni Battista Dagnino (3) (2) Nunzio Guglielmino (4) (5) Giovanni Lo Storto (1) (6) Giuseppe Ranieri Marella Idi Maria Villa	Chairman of Risk and Operations with Related Parties
Chiara Molon (7)
Francesco Mariano Bonifacio (8) Nicola Lorito (8)	Chairman of Appointments Appointments Committee Committee Member of
Sonia Peron
Roberta Senni	(1) (2) (3) (4)

EY S.P.A.

Elena Gottardo

GROUP STRUCTURE

doValue is southern Europe's leading provider of services for managing accounts receivable and real estate assets (servicing) for banks and investors, with assets under management of about €160 billion at the end of September 2020 (gross book value).

The structure of the Group at September 30, 2020, which is illustrated in the following figure, reflects the organic and external growth and diversification of doValue over 20 years of operations.

The Parent Company doValue SpA, a servicing company governed by Article 115 of the TULPS,¹ performs servicing activities for NPL, UTP and real estate assets, provides ancillary services such as business information services through doData and master servicing through Italfondiario (ITF), and coordinates the subsidiaries' activities, which operate in a business area or a geographical market.

doValue (formerly doBank) was formed in 2016 from the combination of Italy's two largest independent servicers: UCCMB, originally part of the UniCredit Group, and Italfondiario, active since 2000 in partnership with leading specialist investors.

In July 2017, the doValue stock debuted on the stock exchange with an offer that was concluded in advance due to the strong interest shown by domestic and international institutional investors. doValue shares are traded under ISIN IT0001044996 and ticker symbol DOV [Bloomberg: DOV IM].

Between 2018 and 2019 doValue experienced a period of strong expansion and broad diversification, first entering the Greek market with a contract from the four local systemic banks and later moving into the wider southern European market, with the acquisition of Altamira Asset Management, a servicer active in Spain, Portugal and Cyprus and a leader in the management of real estate assets. doValue's development in the Italian market continued with the acquisition of new management contracts from banks and investors, in particular with the leadership in the provision of services for securitisations backed by the "GACS" government guarantees.

At the end of 2019 doValue announced an agreement for the acquisition of FPS, a Greek servicer with over €26 billion in assets under management, which enabled the Group to also become a leader in the promising Greek market. The completion of the FPS acquisition in June 2020 represents a further step forward in the achievement of the Group's 2020-2022 Business Plan, which seeks to strengthen doValue's leadership in the servicing market in southern Europe using an asset-light business model that does not require direct investments in asset portfolios and pursuing increasingly greater diversification in the credit value chain.

¹ Consolidated Public Security Act

doValue:		a story of growth and diversification

€ 3 bn	2000	UniCredit acquires Mediovenezie Banca and Fortress joins Italfondiario

	2003	Mediovenezie Banca is appointed UGC Banca
	2004	Fortress acquires 100% of Italfondiario
€ 38 bn	2006	Italfondiario incorporates the company managing the non-performing loans of the Intesa SanPaolo Group
€ 58 bn	2008	UGC Banca merges with Capitalia Service to create UCCMB (Unicredit Credit Management Bank)
€ 85 bn	2014	Italfondiario acquires a 45% stake in BCC Gestione Crediti
€ 85 bn	2015	Fortress acquires 100% of UCCMB from UniCredit
€ 81 bn	2016	doBank (previously UCCMB) acquires Italfondiario
€ 77 bn	2017	doBank is listed in the Milan Stock Exchange at 9€/share
€ 82 hr	2018	doBank enter the Greek servicing market and announces the acquisition of Altamira Asset Management, active in Spain, Portugal and Cyprus
€ 131.5 bn	2019	June: doBank gives up its banking license and takes on the name doValue, completes the acquisition of Altamira and becomes market leader in Southern Europe.
		December: doValue announces the acquisition of Greek servicer FPS Loans and Credits Claim Management
€ 160 bn	2020	June: doValue completes the acquisition of FPS
		(doValue Greece) and becomes market leader in Greece

NOTES TO THE CONSOLIDATED INTERIM REPORT

Basis of preparation

The Consolidated Interim Report as at September 30, 2020, drawn up using the euro as the currency of account, has been prepared on a voluntary basis in order to provide additional periodic information to the annual and half-yearly financial report and ensure continuity with the past, as Legislative Decree 25/2016 implementing Directive 2013/50/EU eliminated the requirement for periodic financial reporting referred to March 31 and to September 30.

The Consolidated Interim Report as at September 30, 2020 has not been prepared in accordance with the international accounting standard applicable to interim reporting (IAS 34 – Interim Financial Reporting) in view of the fact that the doValue Group applies that standard in the preparation of its Consolidated Half-Year Report and not to its quarterly reporting, except in circumstances connected with the preparation of documentation for exceptional transactions.

Beginning with the Consolidated Half-Year Report at June 30, 2019, the Group no longer uses the schedules and the related rules of compilation established in Bank of Italy Circular no. 262/2005 and instead presents its schedules in accordance with the framework established by IAS 1.

The criteria for the recognition, measurement and derecognition of assets and liabilities and the recognition of costs and revenues used in this document have not been updated from those adopted in the preparation of the consolidated financial statements for the year ended December 31, 2019.

The Consolidated Interim Report at September 30, 2020 has been prepared on a goingconcern basis in compliance with the provisions of IAS 1, and on an accrual basis in accordance with the principles of the relevance and materiality of accounting information, the prevalence of economic substance over legal form and with a view to facilitating consistency with future presentations.

The amounts stated are expressed in thousands of euros unless otherwise specified.

The Consolidated Interim Report as at September 30, 2020 is accompanied by the certification of the Financial Reporting Officer pursuant to Article 154-bis of Legislative Decree 58/1998.

Scope and method of consolidation

As at September 30, 2020, the Group comprises the companies reported in the following table:

		Owner relationship Headquarters			Voting
	Company name	and Registered Office	Country	Type of Relation ship (1)	Held by	Holding %	rights % (2)
1.	doValue S.p.A. (formerly doBank S.p.A.)	Verona	Italy		Holding
2.	Italfondiario S.p.A.	Rome	Italy	1	doValue S.p.A.	100%	100%
3.	doData S.r.l.	Rome	Italy	1	doValue S.p.A.	100%	100%
4.	doSolutions S.p.A.	Rome	Italy	1	doValue S.p.A.	100%	100%
5.	doValue Hellas Credit and Loan Servicing S.A.	Athens	Greece	1	doValue S.p.A.	100%	100%
6.	Altamira Asset Management S.A.	Madrid	Spain	1	doValue S.p.A.	85%	85%
7.	Altamira Asset Management Portugal, Unip. Lda. (Portugal)	Lisbon	Portugal	1	Altamira Asset Management S.A.	100%	100%
8.	Altamira Asset Management Cyprus limited	Nicosia	Cyprus	1	Altamira Asset Management S.A.	100%	100%
9.	doValue Cyprus Limited	Nicosia	Cyprus	1	doValue S.p.A. + Altamira AM S.A.		94%+6% 94%+6%
	10. dovalue Greece Holding Single Member Société Anonyme	Amaroussio	Greece	1	doValue S.p.A.	100%	100%
	11. dovalue Greece Loans and Credits Claim Management Société Anonyme	Moschato	Greece	1	dovalue Greece Holding Single Member Société Anonyme	80%	80%

Notes to the table

(1) Type of relationship: 1 = majority of voting rights at ordinary shareholders' meeting.

2 = dominant influence at ordinary shareholders' meeting.

3 = agreements with other shareholders.

4 = other types of control. 5 = centralized management pursuant to Article 39, paragraph 1, of Legislative Decree 136/2015.

6 = centralized management pursuant to Article 39, paragraph 1, of Legislative Decree 136/2015.

(2) Voting rights available in general meeting. The reported voting rights are considered effec tive

Increases for the third quarter of 2020 reflect the acquisition of the 49% minority stake in Altamira Asset Management Cyprus, which gave the Group full ownership of the company.

Decreases reflect the conclusion of the liquidation of Altamira Asset Management Hellas Single-Member Company, 100% owned by the Spanish company Altamira Asset Management S.A..

The methods used to account for the subsidiaries (line-by-line consolidation) are the same as those adopted for the 2019 Annual Report of the doValue Group, which readers are invited to consult.

The financial statements of the Parent Company and the other companies used to prepare the Interim Report are those prepared as at September 30, 2020. Where necessary, the financial statements of consolidated companies that may have been prepared on the basis of different accounting policies have been adjusted to ensure their consistency with the Group's accounting policies.

Accounting policies

In application of Legislative Decree 38 of February 25, 2005, this Consolidated Interim Report as at September 30, 2020 has been prepared in accordance with the accounting standards issued by the International Accounting Standards Board (IASB), including SIC and IFRIC interpretations, endorsed by the European Commission, as provided for in Regulation (EU) no. 1606 of July 19, 2002.

The recognition, measurement and derecognition criteria adopted for assets and liabilities, and the methods for recognising revenues and costs, adopted in the Consolidated Interim Report as at September 30, 2020 have not been updated with respect to those used in preparing the Consolidated Financial Statements for the financial year ended December 31, 2019.

DIRECTORS' INTERIM REPORT ON GROUP OPERATIONS

The summary results and financial indicators are based on accounting data and are used in management reporting to enable management to monitor performance.

They are also consistent with the most commonly used metrics in the sector, ensuring the comparability of the figures presented.

The Group's business

The doValue Group operations are focused on the provision of services to banks and investors over the entire life-cycle of loans and real estate assets ("servicing").

doValue is southern Europe's leading servicer, with about €160 billion (gross book value) in assets under management and a track record spanning 20 years. Its business model is independent, aimed at all banks and investors in the market, and asset light: it does not require direct investments in loan portfolios.

doValue's services are remunerated under long term contracts based on a fee structure that includes fixed fees based on the volume of assets under management and variable fees linked to the performance of servicing activities, such as collections from NPE² receivables or the sale of customers' real estate assets.

The Group provides services in the following categories:

NPL Servicing: the administration, management and recovery of loans utilising in court and out-of-court recovery processes for and on behalf of third parties for portfolios mainly consisting non-performing loans;
o within its NPL Servicing operations, doValue focuses on corporate bank loans of medium-large size and a high proportion of real estate collateral;
Real Estate Servicing: the management of real estate assets on behalf of third parties, including:
o Real estate collateral management: activities to develop or sell, either directly or through intermediaries, real estate owned by customers originally used to secure bank loans;
o Real estate development: analysis, implementation and marketing of real estate development projects involving assets owned by customers;
o Property management: management and maintenance of customers' real estate assets, with the aim of maximising profitability through sale or lease;
UTP Servicing: the administration, management and restructuring of loans classified as unlikely-to-pay, on behalf of third parties, with the aim of returning them to performing status. This activity is mainly carried out by the subsidiaries Italfondiario, which is governed under the provisions of Article 106 of the Consolidated Banking Act (financial intermediary) and doValue Greece, which governed under the provisions of Greek Law 4354/2015 (licensed NPL servicer supervised by the Bank of Greece);

² NPE is the acronym for "non-performing exposures", i.e. exposures that credit institutions have in respect of uncollectable loans, also called impaired loans. NPEs are distinguished on the basis of differences in the probability of recovering the claim at maturity and include: past-due and/or overlimit exposures that are in arrears by more than 90 days, unlikely-to-pay positions (UTPs), which are exposures for which the bank considers it unlikely that the debtor will fully discharge its contractual obligations without recourse to actions such as the enforcement of guarantees or a loan restructuring plan, while bad loans (also called NPLs) are exposures to debtors in a state of insolvency or similar situations.

Early Arrears and Performing Loans Servicing: the management, primarily by doValue Greece, of performing loans or loans past due by fewer than 90 days, not yet classified as non-performing, on behalf of third parties, with the aim of supporting creditors and ensuring the rapid return of the positions to performing status;
Ancillary Data and Products: the collection, processing and provision of commercial, real estate and legal information (through the doData subsidiary) on debtors as well as the provision of other services strictly linked to loan recovery activities, including:
o Due Diligence: including the collection and organisation of information in data room environments as well as the analysis and assessment of loan portfolios for the preparation of business plans for collection and recovery activities;
o Master Servicing and Structuring: administrative, accounting, cash management and reporting services in support of the securitisation of loans; structuring services for securitisation transactions under Law 130/1999 as well as performing the role of authorised entity in securitisation transactions;
o Master Legal: the preparation and coordination of activities for the recovery of loans through court action, including the analysis of documentation, the preparation of legal opinions and assistance in the preparation of litigation;
o "Co-investment": co-investment in loan portfolios in partnership with major financial investors, where such activities are instrumental to obtaining servicing contracts. This business involves taking minority positions in securities issued by securitisation vehicles.

doValue, in its capacity as a special servicer, has received the following ratings: "RSS1-/CSS1- " from Fitch Ratings, and "Strong" from Standard & Poor's. The Servicer Ratings assigned to doValue are the highest of those assigned to Italian operators in the sector and were assigned to doValue and Italfondiario in 2008, before any other operator in this sector in Italy. The rating from Fitch Ratings was, moreover, renewed in September 2020, despite of the pandemic crisis, confirming the resilience of the doValue business model. In addition to the Special Servicer Rating, through Italfondiario the doValue Group also boasts a Master Servicer Rating confirmed in 2020 by Fitch Ratings at MS2+. In July 2020 doValue received a Corporate credit rating of BB with stable outlook from Standard & Poor's and Fitch.

Group highlights

(€/000)

Key data of the consolidated income statement	9/30/2020	9/30/2019 RESTATED	Change €	Change %
Gross Revenues	280,811	233,352	47,459	20%
Net Revenues	246,975	209,823	37,152	18%
Operating expenses	(178,934)	(131,051)	(47,883)	37%
EBITDA	68,041	78,772	(10,731)	(14)%
EBITDA Margin	24%	34%	(10)%	(28)%
Non-recurring items included in EBITDA¹⁾	(8,184)	(11,857)	3,673	(31)%
EBITDA excluding non-recurring items	76,225	90,629	(14,404)	(16)%
EBITDA Margin excluding non-recurring items	27%	39%	(12)%	(30)%
EBT	(872)	35,593	(36,465)	(102)%
EBT Margin	(0.3)%	15%	(16)%	(102)%
Profit (loss) for the period attributable to the Shareholders of the parent company	(8,134)	13,295	(21,429)	n.s.
Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding
non-recurring items	3,549	39,445	(35,896)	(91)%

¹⁾ Non-recurring items in Operating expenses include the costs connected with the acquisition of Altamira Asset Management S.A., of doValue Greece (ex Eurobank Financial Planning Services), those incurred for the Group reorganisation project and costs referred to Covid-19

(€/000)
Key data of the consolidated balance sheet	9/30/2020	12/31/2019 RESTATED	Change €	Change %
Cash and liquid securities	170,267	128,162	42,105	33%
Intangible assets	257,497	289,585	(32,088)	(11)%
Consolidation differences to be allocated	225,774	-	225,774	n.s.
Financial assets	54,591	48,609	5,982	12%
Trade receivables	143,117	176,991	(33,874)	(19)%
Tax assets	108,679	98,554	10,125	10%
Total assets	1,019,724	780,193	239,531	31%
Financial liabilities	677,216	434,269	242,947	56%
Trade payables	39,236	46,969	(7,733)	(16)%
Tax Liabilities	37,459	32,806	4,653	14%
Other liabilities	40,238	25,196	15,042	60%
Provisions for risks and charges	14,791	25,669	(10,878)	(42)%
Total liabilities	819,535	573,453	246,082	43%
Group Shareholders' equity	197,004	206,740	(9,736)	(5)%

The RESTATED balance sheet and income statement amounts respectively as at December 31, 2019 and at September 30, 2019 were restated based on the final outcome of the Altamira Asset Management purchase price allocation.

In order to facilitate an understanding of the doValue Group's performance and financial position, a number of alternative performance measures ("Key Performance Indicators" or "KPIs") have been selected by the Group. They are summarised in the following table.

				CHANGE ON FIRST NINE MONTHS
KPIs	9/30/2020	9/30/2019 RESTATED	12/31/2019	€	%
Gross Book Value (EoP) - Group¹⁾	159,142,312	158,804,856	157,600,134	337,456	0%
Gross Book Value (EoP) - Italy	76,087,611	77,079,160	78,796,103	(991,549)	(1%)
Collections of the period - Italy	924,991	1,235,420	1,893,198	(310,429)	(25%)
LTM Collections - Italy	1,582,769	1,862,598	1,893,198	(279,829)	(15%)
LTM Collections - Italy - Stock	1,536,035	1,804,343	1,794,339	(268,308)	(15%)
LTM Collections / GBV EoP - Italy - Overall	2.1%	2.4%	2.4%	(0.3%)	(14%)
LTM Collections / GBV EoP - Italy - Stock	2.1%	2.5%	2.5%	(0.4%)	(16%)
Staff FTE / Totale FTE Group	39%	33%	38%	6.0%	18%
LTM Collections / Servicing FTE - Italy	2.3	2.7	2.6	(40.0%)	(15%)
EBITDA	68,041	78,772	127,766	(10,731)	(14%)
Non-recurring items (NRIs) included in EBITDA	(8,184)	(11,857)	(12,676)	3,673	(31%)
EBITDA excluding non-recurring items	76,225	90,629	140,442	(14,404)	(16%)
EBITDA Margin	24%	34%	35%	(9.5%)	(28%)
EBITDA Margin excluding non recurring items Profit (loss) for the period	27%	39%	39%	(11.7%)	(30%)
attributable to the shareholders of the parent company Non-recurring items included in Profit	(8,134)	13,295	38,318	(21,429)	n.s.
(loss) for the period attributable to the Shareholders of the Parent Company Profit (loss) for the period	(11,683)	(26,150)	(31,135)	14,467	(55%)
attributable to the Shareholders of the Parent Company excluding non recurring items	3,549	39,445	69,062	(35,896)	(91%)
Earnings per share (Euro)	(0.10)	0.17	0.48	(26.8%)	n.s.
Earnings per share excluding non recurring items (Euro)	0.04	0.49	0.86	(44.9%)	(91%)
Capex	13,653	4,759	8,086	8,894	n.s.
EBITDA - Capex	54,388	74,013	119,680	(19,625)	(27%)
Net Working Capital	103,881	123,171	130,022	(19,290)	(16%)
Net Financial Position	(411,126)	(257,464)	(236,465)	(153,662)	60%
Leverage (Net Debt / EBITDA LTM PF)	2.4x	1.5x	1.3x	n.a.	n.a.

(€/000)

¹⁾ In order to enhance the comparability of Gross Book Value (GBV) as of:

9/30/2019 the values for doValue Greece have been included at the reference date
12/31/2019 the values for doValue Greece have been included at the reference date

Key

Gross Book Value EoP Group/Italy: indicates the book value of the loans under management at the end of the reference period for the entire scope of Group/Italy, gross of any potential write-downs due to expected loan losses.

Collections for period Italy: used to calculate fees for the purpose of determining revenues from the servicing business, they illustrate the ability to extract value from the portfolio under management.

LTM collections in last 12 months Italy: these are the recoveries for the 12 months prior to the reference date, which are used in intraannual periods in order to enable uniform comparison with the annual figure.

LTM collections in last 12 months Stock Italy: these are the recoveries for the 12 months prior to the reference date on the Stock under management.

LTM collections/GBV (Gross Book Value) EoP Italy: the ratio between total gross LTM collections and the period-end GBV of the total portfolio under management. This indicator represents another metric to analyse collections for the period and LTM in absolute terms, calculated in relation to the effectiveness rate of collections, i.e. the yield of the portfolio under management in terms of annual collections and, consequently, commission income from management activities.

LTM collections Stock/GBV (Gross Book Value) EoP Stock Italy: the ratio between total gross LTM collections on the Stock portfolio under management at the start of the reference year and the end-period GBV of that portfolio. Compared with the previous indicator LTM collections/GBV, this metric represents the effectiveness rate of recoveries normalised for the entry of new portfolios during the reference year.

Staff FTE/Total FTE: the ratio between the number of employees who perform support activities and the total number of full-time employees of the Group. The indicator illustrates the efficiency of the operating structure and the focus on management activities.

LTM collections/Servicing FTE Italy: the ratio between total LTM collections and the number of employees who perform servicing activities. The indicator provides an indication of the collection efficiency rate, i.e. the yield of each individual employee specialised in servicing activities in terms of annual collections on the portfolio under management.

EBITDA and EBT attributable to Parent Company shareholders: together with other relative profitability indicators, they highlight changes in operating performance and provide useful information regarding the Group's financial performance. These data are calculated at the end of the period.

Non-recurring items: items generated in extraordinary operations such as corporate restructurings, acquisitions or disposals of entities, start-up of new businesses or entry into new markets.

EBITDA excluding non-recurring items: EBITDA attributable to core operations, excluding all items connected with extraordinary operations such as corporate restructurings, acquisitions or disposals of entities, start-up of new businesses or entry into new markets.

EBITDA Margin: obtained by dividing EBITDA by Gross Revenues.

EBITDA Margin excluding non-recurrent elements: obtained by dividing Ordinary EBITDA by Gross Revenues.

Earnings per share: calculated as the ratio between net profit for the period and the number of outstanding shares at the end of the period.

Earnings per share excluding non-recurring items: the calculation is the same as that for earnings per share, but the numerator is equal to net profit for the period excluding non-recurring items net of the associated tax effects.

EBITDA – Capex: calculated as EBITDA net of investments in fixed capital (including property, plant and equipment and intangible and financial assets) ("Capex"). Together with other relative profitability indicators, it highlights changes in operating performance and provides an indication on the Group's ability to generate cash.

Net Working Capital: this is represented by receivables for fees invoiced and accruing, net of payables to suppliers for invoices accounted for and falling due in the period.

Net Financial Position: this is calculated as the sum of cash, cash equivalents and highly-liquid securities, net of amounts due to banks for loans and due to customers for the current accounts opened with the Group.

Leverage: this is the ratio between the net financial position and pro-forma EBITDA for the last 12 months to take account of significant transactions from the start of the reference year. It represents an indicator of the Group's debt level.

Group results as at September 30, 2020

PERFORMANCE

The following table presents the reclassified income statement as at September 30, 2020 with comparative figures as at September 30, 2019. Note that the amounts as at September 30, 2020 include Altamira Asset Management for the entire period under review and the contribution for June-September 2020 for doValue Greece (formerly Eurobank Financial Planning Services), the acquisition of which closed on June 5, 2020. The figures as at September 30, 2019 include the contribution of Altamira Asset Management for the third quarter only, as its acquisition closed on June 27, 2019. The latter figures have been restated to reflect the outcome of the Altamira Asset Management purchase price allocation.

A schedule has been included at the end of this Interim Report on Group Operations reconciling the management income statement shown below and the schedule presented in the section containing the financial statements.

(€/000)
	9/30/2020	9/30/2019 RESTATED	Change €	Change %
Servicing Revenues:	255,170	206,586	48,584	24%
o/w: NPE revenues	209,789	173,654	36,135	21%
o/w: REO revenues	45,381	32,932	12,449	38%
Co-investment revenues	372	477	(105)	(22)%
Ancillary and other revenues	25,269	26,289	(1,020)	(4)%
Gross revenues	280,811	233,352	47,459	20%
NPEOutsourcing fees	(15,028)	(12,396)	(2,632)	21%
REO Outsourcing fees	(11,004)	(5,143)	(5,861)	114%
Ancillary Outsourcing fees	(7,804)	(5,990)	(1,814)	30%
Net revenues	246,975	209,823	37,152	18%
Staff expenses	(121,782)	(89,266)	(32,516)	36%
Administrative expenses	(57,152)	(41,785)	(15,367)	37%
Total "o.w. IT"	(18,800)	(12,462)	(6,338)	51%
Total "o.w. Real Estate"	(3,851)	(3,719)	(132)	4%
Total "o.w. SG&A"	(34,501)	(25,604)	(8,897)	35%
Operating expenses	(178,934)	(131,051)	(47,883)	37%
EBITDA	68,041	78,772	(10,731)	(14)%
EBITDA margin	24%	34%	(10)%	(28)%
Non-recurring items included in EBITDA¹⁾	(8,184)	(11,857)	3,673	(31)%
EBITDA excluding non-recurring items	76,225	90,629	(14,404)	(16)%
EBITDA margin excluding non-recurring items	27%	39%	(12)%	(30)%
Net write-downs on property, plant, equipment
and intangibles	(49,733)	(32,476)	(17,257)	53%
Net provisions for risks and charges	(7,106)	(7,456)	350	(5)%
Net write-downs of loans	57	553	(496)	(90)%
Profit (loss) from equity investments	(2)	-	(2)	n.s.
EBIT	11,257	39,393	(28,136)	(71)%
Net income (loss) on financial assets and liabilities measured at fair value	231	1,093	(862)	(79)%
Financial interest and commissions	(12,360)	(4,893)	(7,467)	n.s.
EBT	(872)	35,593	(36,465)	(102)%

Non-recurring items included in EBT²⁾	(14,308)	(17,676)	3,368	(19)%
EBT excluding non-recurring items	13,436	53,269	(39,833)	(75)%
Income tax for the period	(7,906)	(20,283)	12,377	(61)%
PROFIT (LOSS) FOR THE PERIOD	(8,778)	15,310	(24,088)	n.s.
Profit (loss) for the period attributable to Non controlling interests	644	(2,015)	2,659	(132)%
PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS OF
THE PARENT COMPANY	(8,134)	13,295	(21,429)	n.s.
Non-recurring items included in Profit (loss) for the period	(12,142)	(26,346)	14,204	(54)%
O.w. Non-recurring items included in Profit (loss) for the period attributable to Non	(459)	(196)	(263)	134%
controlling interest Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding
non-recurring items Profit (loss) for the period attributable to Non	3,549	39,445	(35,896)	(91)%
controlling interests excluding non-recurring	(185)	-	(185)	n.s.
items Earnings per share (in Euro)	(0.10)	0.17	(0.3)	n.s.
Earnings per share excluding non-recurring
items (Euro)	0.04	0.49	(0.45)	(91)%

²⁾ Non-recurring items included below EBITDA refer mainly to (i) termination incentive plans that have therefore been reclassified from personnel expenses, (ii) income taxes and (iii) fair value delta of the Put-Option and Earnout

Portfolio under management

As at the end of June 2020, the Group's assets under management (GBV) in the markets of Italy, Spain, Portugal, Greece and Cyprus amounted to €159.1 billion, up 21.0% compared with the end of 2019 (€131.5 billion). This is mainly due to the inclusion of the assets managed by doValue Greece following the closure of the acquisition on June 5.

The following chart shows the geographical distribution of the GBV, giving the amount under management at September 30, 2020.

Developments in assets under management were characterised by the following changes in flows from new customers, equal to €5.5 billion, as follows:

new contracts of Altamira Asset Management totalling €5.1 billion, and in particular:
o a contract with Alpha Bank in Cyprus in the amount of €4.2 billion, announced on October 14, 2019, the onboarding of which was completed at the end of March 2020;
o a portfolio totalling €0.8 billion from a securitisation of loans by an investor in Spain;
o a contract with Banco Santander in Portugal for real estate brokerage services for the management of the customer's assets (REO services), for a total amount of €0.1 billion.
new contracts won by the subsidiary Italfondiario as the exclusive servicer of a portfolio of unlikely-to-pay ("UTPs") positions in the amount of €0.4 billion.

The above flows were accompanied by an additional €3.1 billion from existing customers as follows:

new contracts of €0.6 billion from the forward flow agreement with UniCredit (Italy);
new contracts of €2.5 billion from forward flow agreements with Banco Santander (Spain), Alpha Bank (Cyprus) and Cooperative Central Bank (CCB, Cyprus);

In addition to this, onboarding continued during the period for the portfolio managed by Eurobank Financial Planning Services SA (hereinafter also "FPS"), whose name was changed to doValue Greece following its acquisition by doValue, equal to €26.4 billion.

GBV declined over the period due to transfers by a bank customer amounting to €1.3 billion.

Assets under management increased further compared with the situation already described due to the acquisition of additional contracts during the third quarter and currently still in the on-boarding phase. The new positions regard:

the ICON portfolio, in Greece, with a total value of around €2.6 billion, for which a Memorandum of Understanding was signed with Bain Capital Credit;
the agreement with Iccrea Banca to service a portfolio of non-performing loans worth around €2 billion (gross book value), of which around €0.4 billion already under management.

The following charts show the composition of the portfolio under management in terms of geographical diversification, type of asset/business and main customers:

Group collections and sales in the period amounted to €2.8 billion, compared with €2.2 billion at September 30, 2019. The increase is essentially attributable to the full contribution of the Altamira contracts and four months of FPS contracts (not present in 2019). Collections break down by geographical area as follows: €0.9 billion in "Italy", €1.2 billion in "Iberia" (Spain and Portugal) and €0.7 billion in "Greece & Cyprus".

Performance

With the primary objective of safeguarding the health of employees, doValue has proactively implemented all necessary measures to prevent and manage the current Coronavirus emergency as indicated by government decrees and the health authorities. The Group's full operation has been and continues to be ensured by the effective application of remote working methods. These containment measures, which have been adopted in all the markets in which the Group operates, especially between March and May, have in any case interrupted important services necessary for servicing loans and real estate assets, notably the courts and services supporting real estate transactions.

In the first nine months of 2020, the doValue Group posted gross revenues of €280.8 million, up 20% over the €233.4 million in the same period of 2019, due mainly to the full contribution to performance for the period of Altamira Asset Management, which was only consolidated as from the third quarter in the comparative figures, and to the contribution of doValue Greece, which was acquired last June. The third quarter of the year contributed more than proportionately to developments in gross revenues, registering gross revenues of €116 million, confirming the progressive normalization of the Group's activities, which had been significantly impacted by the spread of the coronavirus pandemic in April-June 2020.

On a pro-forma aggregate basis, including effects of the acquisitions of Altamira Asset Management and doValue Greece from the beginning of each period, revenues would amount to €335.4 million, a decrease of about 29% on the €469.8 million posted in the first nine months of 2019. This decline is connected with effects of the coronavirus pandemic on economic activity in general and, as noted, on servicing activities in particular. This negative performance, which is concentrated in the second quarter of 2020 due to the full application of lockdown measures in southern Europe, began to improve progressively from June 2020.

Revenues from servicing NPE and REO assets amounted to €255.2 million, an increase of 24% compared with the previous year, when such revenues totalled €206.6 million. The first nine months of 2020 benefited from the contribution of FPS (June-September) of €38.5 million and from the full contribution of Altamira Asset Management in both the NPE and Real Estate areas (€121.6 million compared with €60.6 million in same period of the previous year, when the contribution was limited to the third quarter only). The increase in revenues registered in 2020 would be even larger if the non-recurring revenues in respect of indemnities received for portfolio transfers carried out mainly by trhee client banks, concentrated in particular in the first and third quarter of 2019, were excluded from the calculation.

The positive trend in NPE base fees (compared with the same period of 2019), despite virtually no change in the average fees on the GBV of assets under management, is related to two factors:

the greater weight of this component of revenues in absolute terms and on average - in the markets of southern Europe, where Altamira and doValue Greece operate, as compared with Italy, a factor that can further strengthen the future visibility of the Group's revenues, particularly with the current external environment characterised by greater uncertainty due to the effects of the Coronavirus;
the growth in business for the subsidiary doValue Hellas, which is responsible for managing a €1.5 billion NPL portfolio assigned by the four systemic banks in Greece.

In the Italy segment of NPLs, collections for the last 12 months as a ratio to end-of-period (EoP) gross book value (GBV) — given by the formula "LTM collections/EoP GBV" — came to 2.1%, a decline compared with the 2.4% registered as at September 2019, reflecting the temporary adverse impact of the coronavirus pandemic on collection activities, but stable compared with the end of June 2020. Excluding new management contracts, the indicator "LTM collections stock/EoP GBV stock" was 2.1%, with a similar decrease from the 2.5% posted in the analogous period of 2019 and again at December 2019.

Revenues from co-investment include the €372 thousand contribution (€477 thousand in 2019) from revenues on the ABS securities for the two securitisations Romeo SPV and Mercuzio Securitisation.

The contribution of revenues from ancillary products and minor activities, in the amount of €25.3 million (€26.3 million at September 2019), was more significant and can be attributed to the following:

within Italy, mainly to income from data processing and provision services and other services connected with servicing activities, such as due diligence, master and structuring services, and legal services;
for Altamira, especially to services provided in the areas of rentals, real estate development, and diversified advisory and portfolio management activities.

These revenues account for 9% of total gross revenues for the period and are broadly unchanged on the previous year, decreasing by about €1 million (4%).

	9/30/2020	9/30/2019 RESTATED	Change €	Change %
NPE revenues	209,789	173,654	36,135	21%
REO revenues	45,381	32,932	12,449	38%
Co-investment revenues	372	477	(105)	(22)%
Ancillary and other revenues	25,269	26,289	(1,020)	(4)%
Gross revenues	280,811	233,352	47,459	20%
NPE Outsourcing fees	(15,028)	(12,396)	(2,632)	21%
REO Outsourcing fees	(11,004)	(5,143)	(5,861)	114%
Ancillary Outsourcing fees	(7,804)	(5,990)	(1,814)	30%
Net revenues	246,975	209,823	37,152	18%

Net revenues amounted to €247.0 million, an increase of 18% from the €209.8 million of 2019.

The following items were of note during the period:

the increase, compared with the previous year, in NPE outsourcing fees, which increased by a total of 21% due exclusively to the increase in the scope of consolidation with Altamira and FPS. Considering doValue only, compared with 2019, these fees decreased by 45%, in line with the objective of reducing the use of outsourcing and with rationalisation efforts implemented over the last year;
the consolidation of REO outsourcing fees, in the amount of €11.0 million, related to the increase in assets under management following the acquisition of Altamira Asset Management, consistent with developments in the business;
ancillary outsourcing fees amounted to €7.8 million, compared with €6.0 million in 2019, which is again the direct result of the consolidation of Altamira Asset Management for the entire period under review. However, considering doValue only, these fees recorded a slight increase, equal to about 6%, compared with the first nine months of 2019.

Operating expenses amounted to €178.9 million, an increase of 37% compared with the €131.1 million of the first nine months of 2019, due to the increase in the scope of consolidation with the inclusion of Altamira and doValue Greece.

(€/000)

	9/30/2020	9/30/2019 RESTATED	Change €	Change %
Staff expenses	(121,782)	(89,266)	(32,516)	36%
Administrative expenses	(57,152)	(41,785)	(15,367)	37%
o.w. IT	(18,800)	(12,462)	(6,338)	51%
o.w. Real Estate	(3,851)	(3,719)	(132)	4%
o.w. SG&A	(34,501)	(25,604)	(8,897)	35%
Operating expenses	(178,934)	(131,051)	(47,883)	37%
EBITDA	68,041	78,772	(10,731)	(14)%
o.w: Non-recurring items included in EBITDA	(8,184)	(11,857)	3,673	(31)%
o.w: EBITDA excluding non-recurring items	76,225	90,629	(14,404)	(16)%

More specifically, of the €47.9 million increase, €32.5 million is attributable to staff expenses and €15.4 million to administrative expenses. Excluding the impact of the Altamira and doValue Greece consolidations, costs decreased significantly on the whole, falling by 21% (-€21.7 million), which testifies to the effectiveness of the cost containment strategy implemented, concentrated in particular on the variable component of staff expenses.

Staff expenses increased by 36% compared with the same period of 2019. Excluding the impact of Altamira and doValue Greece, the significant decrease of 20% (down €14.5 million) was due to the twofold effect of:

a reduction in the variable component of remuneration for the period, attributable to the temporary negative impact of the coronavirus pandemic on performance compared with targets;
a reduction in the size of the workforce as a result of the continuation of the costefficiency plan defined in the 2019-2022 Business Plan.

Administrative expenses increased by 37% compared with the first nine months of 2019. Here, too, excluding the contribution of Altamira and doValue Greece, the aggregate posted a decrease of 22% (down €7.2 million) due to:

the full effect of projects announced in the 2018 plan aimed at achieving greater efficiency in the management of operating processes (especially IT and business process outsourcing);
a sharp focus on cost management;
the rationalisation in the number of directly managed local offices, which saw the closure in September and October 2019 of eight local offices, while one new office was opened in Verona and six others were opened under co-working agreements.

These items reflect the initial effects of the transfer to Dock Joined in Tech (a subsidiary of IBM) of the doSolution business unit to manage Group IT systems with effect from July 1, 2020, for a period of ten years. In addition, in response to the COVID-19 epidemic, the company has implemented a comprehensive plan for the further rationalisation of operating costs by taking full advantage of the cost flexibility inherent in the doValue business model.

In line with the two previous years, operating expenses in the period again include a number of non-recurring items (NRIs), which are shown as adjustments to EBITDA to facilitate comparison between periods and the interpretation of structural profitability for the Group.

These non-recurring items, which were also found in the first nine months of 2019 in the amount of €11.8 million, totalled €8.2 million and mainly concern:

(i) costs related to the acquisition of the servicer doValue Greece for financial advisory and due diligence activities connected with the acquisition;
(ii) costs related to the project to acquire the servicer Altamira Asset Management in respect of deferred bonuses for the company's management team;
(iii) the project to reorganise the Group as defined in the 2018-2020 Business Plan and

work to rationalise Altamira-related business processes.

EBITDA excluding non-recurring items decreased by 16% to €76.2 million (€90.6 million in the first nine months of 2019), posting a margin on revenues of 27% (39% in the same period of 2019). The decrease in EBITDA (down €14.4 million) is mainly attributable to the impact of the coronavirus pandemic, which since March has prevented the smooth operation of recovery activities, such as the aforementioned closure of courts and most of the services supporting real estate operations. As with revenues, EBITDA for the period benefited more than proportionately from the contribution of the third quarter of the year, in which the Group posted EBITDA excluding non-recurring items of €41.1 million, greater than the first two quarters of 2020 conbined.

In aggregate, including the effects of acquisitions of Altamira Asset Management e doValue Greece at the beginning of January 2019 and excluding non-recurring items (€104.5 million), EBITDA would be 47% lower than the €197.6 million posted in the first nine months of 2019, due to the effects of the coronavirus containment measures.

Including non-recurring expenses, EBITDA comes to €68.0 million, around 14% lower than the same figure for the first nine months of 2019 (€78.8 million).

Group EBIT was €11.3 million, compared with €39.4 million in 2019. This contraction reflects, in line with expectations, an increase in the amortisation of intangible assets, mainly the contract with Santander and Sareb deriving from the acquisition of Altamira Asset Management. EBT was negative €0.9 million, compared with a positive €35.6 million recorded in the same period of the previous year, including the financial expense connected with the financing received for the Altamira acquisition and interest expense on the bridge loan for the acquisition of doValue Greece, which was then replaced by the bond issued on August 4, 2020.

(€/000)
	9/30/2020	9/30/2019 RESTATED	Change €	Change %
EBITDA	68,041	78,772	(10,731)	(14)%
Net write-downs on property, plant, equipment and intangibles Net provisions for risks and charges Net write-downs of loans	(49,733) (7,106) 57	(32,476) (7,456) 553	(17,257) 350 (496)	53% (5)% (90)%
EBIT	11,257	39,393	(28,136)	(71)%
Net income (loss) on financial assets and liabilities measured at fair value	231	1,093	(862)	(79)%
Net financial interest and commissions	(12,360)	(4,893)	(7,467)	n.s.
EBT	(872)	35,593	(36,465)	(102)%

EBT includes non-recurring expenses in the amount of €14.3 million related to:

€5.5 million in costs for early termination incentives;
€0.4 million release of 2019 funds related to a dispute with Sareb;
€1.0 million for the time value of the put option and earn-out (€0.7 million related to the Altamira transaction and €0.3 million of the time value of the earn-out connected with the doValue Greece transaction);
non-recurring costs included in operating expenses indicated above.

Net write-downs on property, plant and equipment and intangibles amounted to €49.7 million, a significant increase from 2019 (up €17.3 million). This aggregate mainly includes the net adjustments on the Altamira servicing agreements, as well as the amortisation of the same, which are classified as intangible assets given the particular characteristics of the servicing market in Spain, which, in the past, saw the leading operators investing in long-term asset management agreements. As regards doValue Greece servicing agreements, taking account of the recent acquisition date, measurement activities are still in progress and no allocation of the difference between the consideration for the acquisition of the investment and the net

book value of the investee company's assets and liabilities has yet been made. The purchase price allocation process, which involves allocating the fair value of the assets and liabilities of the acquired company and determining goodwill as the difference between the value of these assets and liabilities and the consideration paid, will be completed by June 5, 2021 (one year from the transaction). Therefore, no write-downs/write-backs have been recognised in profit or loss as at September 30, 2020 on the intangible assets of the subsidiary doValue Greece.

The balance for the item also includes the amortisation of lease agreements following the introduction of IFRS 16 as of January 1, 2019. The total impact on 2020 was €7.9 million, whereas for the first nine months of 2019 it was €3.5 million. The remainder of amortisation primarily concerns software licenses connected with technology investments made by the Group during the period to upgrade the IT platform.

Net provisions for risks and charges totalled €7.1 million, a decrease (€0.4 million) from the same period of the previous year. This is mainly attributable to provisions for termination incentives paid to employees (€5.5 million granted to employees in Italy and within Altamira and doValue Greece) participating in the Company's plan, in line with the targets of the 2020- 2022 business plan. This was partially offset by reversals of provisions set aside in previous years that are no longer necessary.

Net financial interest and commissions amounted to €12.4 million, an increase on the €4.9 million recognised at September 2019, reflecting the financial expense associated with the acquisition of Altamira, the increase in expense associated with the bond linked to the acquisition of doValue Greece as well as the effects of the expansion of the scope of consolidation.

(€/000)

	9/30/2020	9/30/2019 RESTATED	Change €	Change %
EBT	(872)	35,593	(36,465)	(102)%
Income tax for the period	(7,906)	(20,283)	12,377	(61)%
Profit (Loss) for the period	(8,778)	15,310	(24,088)	n.s.
Profit (loss) attributable to Non-controlling
interests	644	(2,015)	2,659	(132)%
Profit (loss) attributable to the shareholders of the Parent company	(8,134)	13,295	(21,429)	n.s.

Income tax for the period amounted to €7.9 million despite the loss before tax of €0.9 million posted for the period. The item was mainly impacted by the accounting treatment of the Spanish subsidiary Altamira due to the failure to record - pending the definition of a new business plan - deferred tax assets on the Spanish subsidiary Altamira Asset Management SA to cover the loss for the period.

The tax rate, calculated by excluding non-recurring items and normalising the effects of the deferred tax assets of Altamira SA and of the DTA charge, comes to 23%, compared with 25% for the same period of 2019. In this regard, the impact of the foreign subsidiaries (and of Cyprus in particular) on the normalised tax rate is evident, given that they enjoy a lower overall fiscal burden than that of the Italian companies.

Net profit attributable to Parent Company shareholders excluding non-recurring items is equal to €3.5 million, compared with €39.4 million reported in the first nine months of 2019, a substantial improvement on the loss of €6.1 million posted at June 30, 2020. Including nonrecurring items, the result is a net loss of €8.1 million attributable to the shareholders of the Parent Company, compared with a profit of €13.3 million in the same period of the previous year.

SEGMENT REPORTING

The international expansion of doValue in the broader market of southern Europe with the acquisition first of Altamira and then FPS (now doValue Greece) has prompted a revision of the manner in which management assesses and analyses our business, transitioning from a segmentation by customers and business lines to a geographical breakdown.

This classification is tied to specific factors of the entities included in each category and to the type of market. As a result, the geographical areas defined are: Italy, Greece and Cyprus, and Iberia (Spain and Portugal).

Based on these criteria, the following table shows the revenues and EBITDA for the period for each of these business segments.

For the first nine months of 2020, gross revenues totalled €280.8 million and EBITDA excluding non-recurring items came to €76.2 million.

The Italy segment accounts for 31% of EBITDA excluding non-recurring items for the Group (compared with 34% for Iberia and 36% for Greece & Cyprus), whereas the margin at the level of EBITDA excluding non-recurring items is lower in the Italy segment (22%) than in the other two segments, which are equal to 40% for Greece & Cyprus and 24% for Iberia.

	First Nine Months 2020 vs 2019
Condensed consolidated income statement (excluding non recurring items)	Italy	Greece & Cyprus	Iberia	Total
Servicing revenues
First Nine Months 2020	91,802	66,487	96,881	255,170
First Nine Months 2019 restated	145,970	11,377	49,239	206,586
Change	(54,168)	55,110	47,642	48,584
Co-investment revenues, ancillary and other revenues
First Nine Months 2020	14,947	853	9,841	25,641
First Nine Months 2019 restated	16,759	3,857	6,150	26,766
Change	(1,812)	(3,003)	3,691	(1,124)
Outsourcing fees
First Nine Months 2020	(9,181)	(2,341)	(22,314)	(33,836)
First Nine Months 2019 restated	(13,532)	(813)	(9,184)	(23,529)
Change	4,351	(1,528)	(13,130)	(10,307)
Staff expenses
First Nine Months 2020	(57,108)	(25,220)	(38,591)	(120,919)
First Nine Months 2019 restated	(70,862)	(5,053)	(13,350)	(89,266)
Change	13,755	(20,168)	(25,240)	(31,653)
Administrative expenses
First Nine Months 2020	(17,142)	(12,693)	(19,997)	(49,831)
First Nine Months 2019 restated	(19,136)	(3,040)	(7,752)	(29,928)
Change	1,994	(9,652)	(12,245)	(19,903)
EBITDA excluding non-recurring items
First Nine Months 2020	23,317	27,086	25,821	76,225
First Nine Months 2019 restated	59,199	6,327	25,103	90,629
Change	(35,881)	20,759	718	(14,404)
EBITDA Margin excluding non-recurring items
First Nine Months 2020	22%	40%	24%	27%
First Nine Months 2019 restated	36%	42%	45%	39%
Change	(15%)	(1%)	(21%)	(12%)

(€/000)

Group Financial Position

INTRODUCTION

The balance sheet figures have been reclassified from a management perspective, which is more in line with the representation of the reclassified income statement and the net financial position of the Group.

At the end of this interim report on Group operations, in accordance with the same presentation approach for the income statement, we have included a reconciliation between the management balance sheet and the schedule given in the section containing the financial statements.

(€/000)
	9/30/2020	12/31/2019 RESTATED	Change Amount	Change %
Cash and liquid securities	170,267	128,162	42,105	33%
Financial assets	54,591	48,609	5,982	12%
Property, plant and equipment	39,113	23,904	15,209	64%
Intangible assets	257,497	289,585	(32,088)	(11)%
Tax assets	108,679	98,554	10,125	10%
Trade receivables	143,117	176,991	(33,874)	(19)%
Assets held for sale	10	10	-	n.s.
Consolidation differences to be allocated	225,774	-	225,774	n.s.
Other assets	20,676	14,378	6,298	44%
TOTAL ASSETS	1,019,724	780,193	239,531	31%
Financial liabilities: due to banks	581,393	364,627	216,766	59%
Other financial liabilities	95,823	69,642	26,181	38%
Trade payables	39,236	46,969	(7,733)	(16)%
Tax Liabilities	37,459	32,806	4,653	14%
Employee Termination Benefits	10,595	8,544	2,051	24%
Provision for risks and charges	14,791	25,669	(10,878)	(42)%
Other liabilities	40,238	25,196	15,042	60%
TOTAL LIABILITIES	819,535	573,453	246,082	43%
Share capital	41,280	41,280	-	n.s.
Reserves	163,961	127,041	36,920	29%
Treasury shares	(103)	(184)	81	(44)%
Profit (loss) for the period attributable to the
Shareholders of the Parent Company	(8,134)	38,603	(46,737)	(121)%
NET EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY	197,004	206,740	(9,736)	(5)%
TOTAL LIABILITIES AND NET EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY	1,016,539	780,193	236,346	30%
NET EQUITY ATTRIBUTABLE TO NON-CONTROLLING
INTERESTS	3,185	-	3,185	n.s.
TOTAL LIABILITIES AND NET EQUITY	1,019,724	780,193	239,531	31%

The RESTATED balance sheet and income statement amounts as at December 31, 2019 were restated based on the final outcome of the Altamira Asset Management purchase price allocation.

Financial assets went from €48.6 million to €54.6 million, an increase of €6.0 million. A breakdown of financial assets is reported in the following table.

	9/30/2020	12/31/2019 RESTATED	Change €	Change %
At fair value through profit or loss	46,462	33,588	12,874	38%
Debt securities	18,281	4,619	13,662	n.s.
CIUs	28,135	28,923	(788)	(3)%
Equity instruments	46	46	-	n.s.
At amortized cost	8,129	15,021	(6,892)	(46)%
L&R with banks other than current accounts
and demand deposits	86	86	-	n.s.
L&R with customers	8,043	14,935	(6,892)	(46)%
TOTAL	54,591	48,609	5,982	12%

The increase in debt securities includes €13.7 million from the subscription of notes from the securitisation of NPEs with a government guarantee ("Asset Protection Scheme", also known as "Hercules"), similar to the GAGS mechanism in Italy, as part of the acquisition of doValue Greece, which is described in the section Significant events in the period.

Property, plant and equipment amounted to €39.1 million, an increase on the €23.9 million registered at the end of 2019. The increase is attributable to the contribution of the newly acquired company doValue Greece, in the amount of €8.9 million, and investments mainly made by Altamira Asset Management for the renewal of the Right of Use relating to the Madrid office.

Intangible assets decreased from €289.6 million to €257.5 million, a decline of €32.1 million, reflecting the net effect of amortisation for the period in the amount of €39.6 million and new acquisitions, mainly software, in the amount of €7.2 million.

The following is a breakdown of intangible assets.

	9/30/2020	12/31/2019 RESTATED	Change €	Change %
Software	16,372	18,543	(2,171)	(12)%
Brands	38,402	41,081	(2,679)	(7)%
Assets under development and payments on	3,640	2,291	1,349	59%
account Goodwill	124,506	124,499	7	0%
Other intangible assets	74,577	103,171	(28,594)	(28)%
TOTAL	257,497	289,585	(32,088)	(11)%

(€/000)

Brands, goodwill and other intangible assets are essentially related to the acquisition of Altamira Asset Management SA (Altamira) and its subsidiaries in June 2019, allocated based on the definitive purchase price allocation described in the Consolidated Half-Yearly Report at June 30, 2020.

Tax assets as at September 30, 2020, break down as follows:

	9/30/2020	12/31/2019 RESTATED	Change €	Change %
Current tax assets	3,151	1,141	2,010	n.s.
Paid in advance	2,739	1,812	927	51%
Tax credits	818	-	818	n.s.
Tax liabilities	(406)	(671)	265	(39)%
Deferred tax assets	92,936	90,740	2,196	2%
Write-down on loans	49,332	49,329	3	0%
Tax losses carried forward in the future	14,384	13,082	1,302	10%
Property, plants and equipment / Intangible assets	22,057	22,637	(580)	(3)%
Other assets / liabilities	2,165	112	2,053	n.s.
Provisions	4,998	5,580	(582)	(10)%
Other tax receivables	12,592	6,673	5,919	89%
TOTAL	108,679	98,554	10,125	10%

With regard to deferred tax assets, following the acquisition of Altamira in 2019, the Group recognised temporary differences on the deductibility of write-downs, depreciation and amortisation of non-current assets (€23 million) and of the tax loss deriving from write-downs of intangible assets at the time of acquisition of control by doValue (€7 million).

The following is a breakdown of tax liabilities:

	9/30/2020	12/31/2019 RESTATED	Change €	Change %
Taxes for the period	8,363	7,853	510	6%
Deferred tax liabilities	16,345	15,345	1,000	7%
Other tax payables	12,751	9,608	3,143	33%
TOTAL	37,459	32,806	4,653	14%

The amount of deferred tax liabilities reported here refers to the effect of the Altamira business combination, and in particular, the purchase price allocation process as the tax effect of the adjustments made to the initial consolidation values of the acquired company.

The other tax payables relate to the liability of VAT (€10.6 million) and withholding tax (€2.1 million).

Financial liabilities – due to banks amounted to €581.4 million as at September 30, 2020. The item mainly includes the residual liability of €332.0 million in respect of the 5-year facility loan obtained for the acquisition of Altamira, as well as €265.0 million in respect of the principal amount of the senior bond issued on August 4 this year, bearing an annual rate of 5%, for the acquisition of Eurobank FPS (now doValue Greece).

The initial nominal amount of the facility loan is €415.0 million, bearing a variable rate of 2.5% as at September 30, 2020, linked to 6-month Euribor and a number of financial covenants.

(€/000)

Other financial liabilities at the end of the first nine months of 2020 are detailed below:

(€/000)
	9/30/2020	12/31/2019 RESTATED	Change €	Change %
Lease liabilities	32,468	18,027	14,441	80%
Earn-out	36,341	17,417	18,924	109%
Put option on non-controlling interests	26,522	33,194	(6,672)	(20)%
Hedging derivatives	481	367	114	31%
Other financial liabilities	11	637	(626)	(98)%
TOTAL	95,823	69,642	26,181	38%

Lease liabilities include the discounted value of future lease payments, in accordance with the provisions of IFRS 16.

The liability for the earn-out is connected (i) with the Altamira operation in the amount of €17.7 million and represents a portion of the acquisition price that will be defined within two years from the date of the agreement at end of December 2020, and (ii) with the acquisition of Eurobank FPS (€18.6 million), linked to the achievement of a number of EBITDA targets over a ten-year horizon. Any earn-out payments will not be due before 2024.

The liability for the put option on non-controlling interests regards the option for the purchase of residual non-controlling interests of Altamira, expiring in 2021.

All the liabilities indicated were recalculated as at September 30, 2020.

Provisions for risks and charges amounted to €14.8 million, compared with €25.7 million at the end of 2019, a decrease of €10.9 million due to the combined effect of new allocations, uses and releases in respect of litigation and out- of-court disputes settled during the period and for staff incentive provisions.

(€/000)

	9/30/2020	12/31/2019 RESTATED	Change €	Change %
Legal disputes	8,434	14,035	(5,601)	(40)%
Staff expenses	1,324	7,359	(6,035)	(82)%
Other	5,033	4,275	758	18%
TOTAL	14,791	25,669	(10,878)	(42)%

NET WORKING CAPITAL

(€/000)

	9/30/2020	12/31/2019	9/30/2019
Trade receivables	143,117	176,991	166,304
Trade payables	(39,236)	(46,969)	(43,133)
TOTAL	103,881	130,022	123,171

The figure for the period of €103.9 million shows an improvement of €26.1 million compared with December 2019 and €19.3 million compared with September 2019, while it is substantially unchanged on the end of June 2020 (€102 million).

This trend is particularly commendable if we also take account of the deterioration in the general macroeconomic environment brought on by the coronavirus pandemic. It benefits from the strategic choice of the Group, which, thanks to a policy of diversification, was able to limit the adverse impact on cash generation by monitoring net working capital.

NET FINANCIAL POSITION

(€/000)

		9/30/2020	12/31/2019	9/30/2019
A	Cash	170,267	128,162	151,271
C	Liquidity (A)+(B)	170,267	128,162	151,271
D	Current bank debts	(84,808)	(79,683)	(83,087)
E	Net current financial position (C )+(D)	85,459	48,479	68,184
F	Non-current bank debts	(244,017)	(284,944)	(325,648)
G	Bonds issued	(252,568)	-	-
H	Net financial position (E)+(F)+(G)	(411,126)	(236,465)	(257,464)

The net financial position at September 30, 2020 amounted to €(411.1) million, compared with €(236.5) million at the end of 2019 and €(257.5) million at the end of September 2019. The item shows a significant increase compared with the previous periods and is the result of the acquisition of Eurobank FPS, which was financed with the issue of a guaranteed senior bond of €265.0 million. In partial compensation, the cash position increased to €170.3 million, only partially linked to the contribution of the newly acquired company.

It should be noted that the trend of the current net financial position is significantly improving and stands at €85.5 million in September against €(152.2) million in June 2020, thanks to the refinancing operation of the bridge loan carried out in August.This indicator, if compared with the figures at the end of 2019 (equal to €48.5 million) and September 2019 (equal to €68.2 million), underlines the correct balance of the Group's capital structure.

OPERATING CASH FLOW

(€/000)

	9/30/2020	9/30/2019 RESTATED
EBITDA	68,041	78,772
Capex	(13,653)	(4,760)
EBITDA-Capex	54,388	74,012
as % of EBITDA	80%	94%
Adjustment for accrual on share-based incentive system payments	1,847	3,707
Changes in NWC (Net Working Capital)	35,093	32,645
Changes in other assets/liabilities	(21,454)	(23,942)
Operating Cash Flow	69,874	86,422
Tax paid (IRES/IRAP)	(9,156)	(8,201)
Free Cash Flow	60,718	78,221
(Investments)/divestments in financial assets	(22,147)	(6,334)
Equity (investments)/divestments	(211,357)	(360,998)
Dividend paid	(1,875)	(36,264)
Net Cash Flow of the period	(174,661)	(325,375)

Net financial Position - Beginning of period	(236,465)	67,911
Net financial Position - End of period	(411,126)	(257,464)
Change in Net Financial Position	(174,661)	(325,375)

Operating cash flow amounted to €69.9 million, compared with €86.4 million in the same period of 2019. This performance was reflected in good cash generation in the period despite the temporary contraction in business due to the coronavirus pandemic. This was made possible by the close attention paid to managing working capital, which in the period generated €35.1 million in cash, compared with 32.6 million in the year-earlier period.

Income taxes paid increased slightly over the €8.2 million of the corresponding period of 2019 to €9.2 million.

Investments in financial assets amounted to €22.1 million, mainly including the following:

the investment of €14.2 million in junior and mezzanine securities of 3 securitisations, involving €7.5 billion in NPEs (the "Cairo Project"), backed by a government guarantee ("Asset Protection Scheme", also known as "Hercules");
the payment of interest on the €415 million half-yearly instalment of the facility loan (€332 million of residual principal as at September 30), obtained for the acquisition of the servicer Altamira;
interest paid in the period on finance leases, pursuant to IFRS 16;
the recovery of €6.5 million on an opportunistic and non-recurring short-term investment made at end of December 2019 in a non-performing loan portfolio.

Equity investments, equal to €211.4 million, reflects the effect of the net disbursement connected with the acquisition of the servicer doValue Greece, which closed on June 5, 2020, and the investment at the end of September to acquire 49% of Altamira Cyprus, equal to an amount of about €4,5 million.

Dividend paid includes the dividend distributed by Altamira to the non-controlling shareholder Banco Santander (15%).

Net cash flow for the period was a negative €(174.7) million, an improvement on the negative €(325.4) million recorded in September 2019 (which was affected by the outlay for the acquisition of Altamira) despite the sharp deterioration in general macroeconomic conditions.

Significant events during the period

ONBOARDING OF NEW LOAN PORTFOLIOS

During the first nine month of the year, in line with the objectives of the Business Plan, the main operations involving the portfolio under management saw the on-boarding of about €5.5 billion in new positions under an agreement signed with Alpha Bank in Cyprus in October 2019, and a new contract for an NPL portfolio originated in Spain and transferred from one of doValue's leading customers in the local market, an international investor specialising in distressed credit.

In addition, about €3.1 billion in new assets were received for management from existing customers under long-term contracts signed in Spain, Italy and Cyprus.

NEW CREDIT SERVICING AGREEMENTS

In the period between January and September 2020, doValue's commercial initiatives have produced a significant volume of new credit servicing agreements, which, in the coming months, once onboarding procedures have been completed, will expand the portfolio under management and support the Group's future cash generation.

The most representative servicing agreements include:

an agreement with Iccrea Banca in Italy for €1.6 billion,
an agreement with an investor in Spain for €0.8 billion, and
an agreement with Bain Capital Credit in Greece for €2.6 billion.

ACQUISITION OF EUROBANK FINANCIAL PLANNING SERVICING (FPS), NOW DOVALUE GREECE

On June 5, 2020 the doValue Board of Directors announced that it had completed the acquisition of an 80% stake in Eurobank Financial Planning Services (FPS), now doValue Greece. The remaining 20% is still held by Eurobank.

The operation also includes the exclusive management of future flows from Early Arrears and NPEs originated by Eurobank in Greece for a period of 10 years, thus consolidating doValue's role as the strategic long-term partner of a systemic bank.

The consideration paid by doValue amounted to around €211 million. The amount was adjusted from the €248 million (€310 million for 100%) cited at the launch of the transaction in order to reflect contractual provisions concerning the liquidity position of FPS, the actual servicing portfolio at end 2019 and the net economic benefits accrued to date during 2020. Moreover, the operation envisaged an earn-out up to €50 million (€40 million for the 80% acquired by doValue) connected with the achievement of a number of EBITDA targets over a 10-year horizon. Any earn-out payments will not fall due before 2024 and will depend on outperforming current business plan expectations.

The transaction was financed with a bank credit line granted by a pool of national and

international banks and structured as a bridge to long-term financing with no amortisation (a bullet loan), equal to €265.0 million.

As part of the transaction, a total of €14.2 million in mezzanine and junior securities were also subscribed. They were issued by three SPVs for loan securitisations with senior notes backed by government guarantees ("Asset Protection Scheme", also known as "Hercules").

ASSIGNMENT OF CORPORATE RATING BY S&P AND FITCH

On July 10, 2020, the Company announced that the rating agencies S&P Global Ratings and Fitch Ratings had both assigned a "BB" Corporate rating with stable outlook to doValue.

doValue believes that the ratings confirm the Group's leadership in the European market, the presence of long-term management contracts and a sound profitability growth profile.

PRICING OF THE SENIOR SECURED BOND

On July 31, 2020, the Company announced that the pricing of the secured senior bond had been conducted for a total principal amount of €265 million, at an annual fixed rate of 5.00%, with an issue price equal to 98.913% and yield of 5.25%. This is the first debt capital markets transaction carried out by doValue.

The bond will mature on August 4, 2025 and has been reserved to qualified investors. The funds raised with the issue will be used by doValue for the early repayment of the entire senior secured bridge loan in the amount of €265 million (plus accrued interest), which was obtained by the Company on June 3, 2020, as part of the acquisition of FPS. As from the issue date, the bond will be listed by the Luxembourg Stock Exchange on the Euro MTF multilateral trading facility.

OUTSOURCING OF FUNCTIONS - DOVALUE CHOOSES IBM AS A PARTNER FOR DIGITAL TRANSFORMATION AND MANAGEMENT OF THE GROUP'S IT SYSTEMS

On July 3, 2020 the Company announced that it had selected IBM as a partner for technological innovation and the management of the ICT and back-office processes of its Italian operations. Through its subsidiary Dock Joined in Tech, IBM will develop a cognitive data platform, thanks to which doValue will be able to supply all customers of in the credit industry with data-driven value-added services, following through on recently announced initiatives in this area.

The agreement envisages the transfer to Dock of doSolutions, the IT & Operations company of the doValue Group, which provides IT and back-office services. The remaining staff of doSolutions will subsequently be integrated into doValue.

ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING

The Ordinary and Extraordinary Shareholders' Meeting, in a single call, was held on May 26, 2020.

In the extraordinary session, the Shareholders' Meeting amended Articles 4 and 5 of the Articles of Association. The amendments (i) allow for, within the limits permitted by law, the publication and disclosure of information relating to properties that are the subject of out-of-court activities carried out by the Company (Article 4); and (ii) grant the Board of Directors the power to carry out a divisible capital increase, in one or more instalments, with the exclusion of pre-emption rights, pursuant to Article 2443 and 2441, paragraph 4, second sentence, of the Italian Civil

Code, i.e. for consideration in cash, by issuing, in one or more tranches, a number of ordinary shares not exceeding 10% of the total number of shares in circulation at the date of any exercise of the delegated powers (Article 5).

In the ordinary session, the Shareholders' Meeting:

approved the Group's consolidated financial statements as at December 31, 2019 and the separate financial statements of doValue S.p.A.. Profit was allocated entirely to retained earnings;
approved the Remuneration Report and the 2020 Incentive Plan;
authorised the Board of Directors to purchase treasury shares and to dispose of them. In compliance with applicable regulations and in such a way as to guarantee equal treatment of shareholders, the resolution concerns the purchase, in one or more transactions, of up to a maximum of 8,000,000 ordinary shares of the Company, equal to 10% of the total, for a period of 18 months from the date of approval of the Shareholders' Meeting.

For further information, see the Company's website, www.dovalue.it, in the section "Governance - Shareholders' Meeting".

Significant events after the end of the period

NEW CREDIT SERVICING AGREEMENT

On October 29, 2020, the Group announced that the subsidiary Italfondiario had reached an agreement for the exclusive management as servicer of a portfolio of unlikely-to-pay ("UTP") loans with a gross book value of approximately €450 million.

The total volume of doValue's new servicing contracts in southern Europe in 2020 following this agreement amounts to nearly €9 billion, approaching the year-end pre-COVID target of around €10 billion, confirming the positive outlook of the credit management and real estate services market.

Outlook for operations

The current economic situation linked to the effects of the coronavirus, which is not expected to involve structural changes in the dynamics of the sector, calls for a cautious approach to short-term developments in a context of limited visibility and despite the encouraging indications that emerged from collection trends beginning in June and continuing through September 2020.

More specifically, despite the operational continuity of doValue operations in all its markets, the Group is carefully monitoring the introduction of new measures to contain the spread of the coronavirus, the reduced activity of the legal system – which is gradually improving but still not at an optimal level - and public services in general, together with decisions on bank loan repayment moratoriums and developments in the real estate sector, which can impact the time needed to manage positions and collections.

The seasonality of the Group's collections, which are concentrated on the last quarter of the year, our significant geographical, product and customer diversification and the flexibility of costs, in particular outsourcing costs and the employee incentive plan, are factors that mitigate the short-term adverse impacts of the crisis and support the moderate and progressive recovery now under way, as underscored by developments in the third quarter of 2020, in line with current consensus expectations.

Finally, we believe that the doValue business model is able to respond to the various phases of the economic cycle with the expansion of assets under management or collections, respectively, during a contraction or expansion of the cycle itself, consistent with the Group's mission to support banks, investors, companies and individuals in all phases of credit management, fostering the sustainable development of the financial system.

Main risks and uncertainties

In consideration of the activities it performs and the results achieved, the financial position of the doValue Group is appropriately scaled to meet its needs.

The financial policy pursued is aimed at fostering the stability of the Group, which in view of its operations does not currently or prospectively intend to engage in speculative investment activity.

With regard to the main risks and uncertainties, current financial market conditions and the consequences of any economic and financial effects of the spread of the coronavirus pandemic are inevitably shadowed by uncertainty, even in the presence of stable macroeconomic conditions. The Group believes in any case that at present there is no doubt regarding its ability to continue to operate as a going concern.

As underscored in the recently approved report, despite being the period most affected by the negative effects of the COVID-19 health emergency and the related impact on global economic activities, the Company generated EBITDA of about €68 million, or over €76 million excluding non-recurring items. This performance testifies to the sound strategy being pursued by the Group, both from the point of view of the rationalisation of costs and geographical diversification. The Group's liquidity available at end of October is about €194 million and unused credit lines total a further €80 million. Finally, during 2020, the Group obtained new credit management contracts amounting to more than €9 billion and on July 1 signed an agreement to manage an additional €2.6 billion in loans in Greece.

Impacts and effects of the COVID-19 epidemic

The international health emergency declared in January 2020 by the World Health Organisation (WHO) as a consequence of the spread of coronavirus has caused a significant slowdown in activity in the period, and in some cases the interruption of economic and commercial activity in multiple sectors.

Market turbulence persists, which amplifies the level of uncertainty of the estimates of possible developments in terms of the economic impact of the spread of the coronavirus around the world, Europe and Italy. Short-term macroeconomic forecasts will therefore be subject to changes that are currently not precisely quantifiable.

As from end of February, the doValue Group promptly activated the Business Continuity & Crisis Management Committee in order to make the decisions required by the evolving situation. The main measures, promptly adopted, were focused on supporting the companies' employees and associates, both in Italy and abroad, in dealing with the COVID-19 emergency, protecting first and foremost their health and well-being and enabling them to keep in touch with the organisation:

a freeze on travel and promotion of remote meetings;
an analysis of flexible working in order to assess the technological requirements in terms of equipment (laptops and smartphones) and the capacity of servers and data network lines accessing the Data Centres, with the establishment of monitoring arrangements for the communication network and external access systems to ensure timely intervention in case of critical issues;
the authorisation for flexible working, progressively extended to all Italian branches as well as the foreign offices of subsidiaries;
the supply of IT equipment, while increasing service-desk services, in order to ensure faster delivery and more appropriate telephone support and advice services;
the adoption of new "unified communication" systems, such as Skype and Microsoft Team, so as to facilitate meetings and video calls between users of flexible working arrangements;
the activation of on-line courses and seminars on flexible working practices in order to support staff in managing operational changes as effectively as possible;
the supply of on-line training courses on issues such as COVID-related health & safety.

These measures have enabled almost all companies in Italy and abroad to continue their activities using flexible working approaches, while ensuring full business operations and all critical processes, while maximising safety for our people.

After conclusion of the maximum safety phase and with the beginning of the gradual reopening of operational offices, both in Italy and abroad, additional measures were adopted to safeguard health and safety, as well as the well-being of people:

the installation of sanitising product dispensers in all premises
the posting of notices and warnings on rules of conduct in order to minimise the risks of contagion from COVID-19 in all common areas and refreshment points, with the issue of an appropriate Company safety protocol;
the sanitization of premises and provision of personal protective equipment (gloves and masks) to be delivered daily to employees;
temperature reading at entrances to our premises;
the reorganization of spaces and procedures for access to premises based on phases and groups, in order to ensure minimum compulsory distancing between people.

With regard to the Italian companies of the Group whose employees are covered by the national collective bargaining agreement for the credit sector, an application was submitted for access to the Solidarity Fund for the reduction of activities caused by the COVID-19 emergency, establishing a total number of hours intended to cover the reduction.

The application for the benefit concerned the period from May 4, 2020 to August 28, 2020 for a maximum of 9 weeks and the payment of the ordinary allowance to eligible employees was advanced by the Company.

In compliance with the recommendations issued by Consob on July 16, 2020 (Warning notice no. 8/20 - COVID 19 – Warning notice on financial reporting) and ESMA guidelines, the main financial information helpful in understanding the effects of the pandemic on the Company's business is provided below.

Evaluations pursuant to IAS 36 "Impairment of assets"

With special regard to the intangible assets recognised following the acquisition of Altamira

Asset Management and for which the allocation of the purchase price is now final - pursuant to IFRS 3 - 12 months after the acquisition date, as of September 30, tests were carried out on trigger events which revealed for some of them, relating to servicing contracts and the brand name, the need to carry out a new impairment test.

On the basis of the foregoing, the Company carried out an impairment test in accordance with IAS 36 "Impairment of assets". The test was performed therefore on the carrying amounts of all intangible assets other than goodwill resulting as at September 30, 2020 from the updating of amortisation/depreciation pertaining to the period.

For the purposes of impairment testing, the forward-looking information determined in accordance with the most recent scenario assumptions collected by the subsidiaries was considered, based also on developments in the pandemic and the estimated effects it has had and will have on the NPL servicing market in general and on Altamira Asset Management in particular. As regards impairment testing of the carrying amounts of each single intangible asset, the measurement models used to determine the estimate of the recoverable value found no impairment of the net carrying amounts of the assets. The analyses were performed on the basis of approved plans that were stressed to take account of developments in operations and the impacts of the pandemic, with particular regard to collections and sales of real estate assets.

The valuation models used to determine the estimate of the recoverable value did not reveal any losses from the comparison with the net book value of the assets.

As regards the value of the goodwill, the execution of the tests on the trigger events as of September 30, 2020 did not indicate a need to update of the impairment testing conducted with reference to the date of June 30, 2020. As a result of this exercise, from the comparison between the recoverable value and the net book value of the two CGUs identified in the geographical areas pertaining to Altamira Asset Management and its subsidiaries, namely Iberia (Spain and Portugal) and Greece & Cyprus, the model found the recoverable value was more than sufficient to support goodwill, confirming the absence of impairment losses.

Uncertainties and significant risks related to COVID-19

Current conditions in the financial markets and the consequences of any economic and financial effects of the spread of the coronavirus are inevitably shadowed by uncertainty, even in the presence of stable macroeconomic conditions.

However, in light of the information available to date, considering the organisational measures implemented to guarantee business continuity, the multiple cost containment initiatives undertaken, and taking account of the type of business conducted by the Group, which is structurally flexible in different phases of the economic cycle, it is believed that there is currently no risk of having to adjust the carrying amounts of the assets and liabilities reported in these financial statements.

The Group believes in any case that at present there is no doubt regarding its ability to continue to operate as a going concern.

Impact of the COVID-19 epidemic on the income statement

The direct effects of the COVID-19 pandemic and the lockdown measures imposed by European governments have caused operating difficulties for the sector in which doValue operates and the visibility of short-time developments remains limited. Nevertheless, the courts, which are essential to both in-court and out-of-court management of credit positions, have progressively been reopening since mid-May, and the level of court activity, although still below normal, is gradually increasing. This therefore represents a positive sign, albeit amid ongoing uncertainty. Accordingly, collections are in line with the scenarios expected by the Group, showing an improvement in the third quarter compared with the previous period, and are substantially in line with current consensus expectations. In the first nine months of 2020 the Group achieved the following results (compared with the first nine months of 2019):

Collections equal to around €2,800 million (about €2,180 million as at September 30, 2019);
Gross revenues equal to €281 million (€233 million as at September 30, 2019). Pro-forma

gross revenues equal to €335 million (€470 million as at September 30, 2019);

• EBITDA excluding non-recurring elements equal to €76 million (€91 million as at September 30, 2019). Pro-forma EBITDA excluding non-recurring elements equal to €105 million (€198 million as at September 30, 2019).

As regards assets under management (GBV), despite the current environment, in the nine months ended September 30, 2020 doValue entered new servicing contracts with investors with a GBV equal to €5.5 billion, in addition to flows from long-term management contracts of over €3.1 billion. This underscores the stability of the current pipeline of the servicing market in southern Europe. With regard to costs, the Group's business model has proven to be flexible and capable of offering an additional level of protection in the current scenario. doValue has adopted cost efficiency measures in each of the markets in which it operates, including a substantial reduction in variable personnel costs and overheads. Developments in EBITDA and actions to address costs have enabled the Group to preserve and increase cash flow, with total available liquidity amounting to nearly €250 million, of which about €170 million in current account balances and €80 million in credit lines (unused at the end of September 2020). doValue therefore closes the period with a leverage ratio (ratio between net financial debt and EBITDA) of 2.4x at the end of September 2020. No restrictions connected with financial covenants are expected in the medium term.

Information on the impact of COVID-19 on strategic planning and plan targets, economic performance, financial position and cash flow

As of the date of this Consolidated Interim Report as at September 30, 2020, in consideration of the persistence of market turbulence linked to the COVID-19 pandemic, which makes it impossible to forecast possible developments in its economic impact with any accuracy, it would be premature to conduct a review of the overall business plan.

However, in order to assess the sustainability of the carrying amounts of assets under management, while taking account of the difficulty inherent in making even short- or mediumterm forecasts in this climate of uncertainty, the Company has prepared a scenario of the future impact of COVID-19 on the plan targets. The Company considered the decline in revenue flows from portfolios under management during 2020, assuming a gradual and progressive recovery in operations in the short term, together with cost containment measures envisaged in the budget.

This scenario is consistent with the doValue business model, which is able to adapt to phases of contraction or expansion over the economic cycle, reacting with the expansion of assets under management or collections.

Other information

MANAGEMENT AND COORDINATION

As at September 30, 2020, 25.05% of the shares of the Parent Company doValue are owned by its largest shareholder, Avio S.à r.l., a company incorporated in Luxembourg, affiliated with the Fortress Group which in turn was acquired by Softbank Group Corporation in December 2017. A further 1.74% of doValue shares are held by other investors similarly connected with Softbank Group Corporation, which there by holds an overall stake of 26.79%.

As at September 30, 2020, 72.40% of the shares were in circulation on the market and the remaining 0.81% is represented by 651,542 treasury shares, measured at cost, for a total of €103 thousand held by the Parent Company.

The majority shareholder does not exercise any management or coordination powers over doValue pursuant to Article 2497 et seq. of the Civil Code, as it does not issue directives to doValue and, more generally, does not interfere in the management of the Group. Accordingly, the strategic and management policies of the doValue Group and all of its activities in general are the product of the independent self-determination of the corporate bodies and do not involve external management by Avio.

The Parent Company doValue exercises its management and coordination powers over its direct subsidiaries as provided for in the legislation referred to above.

TRANSACTIONS IN TREASURY SHARES

At September 30, 2020, doValue held 651,542 treasury shares, equal to 0.81% of total share capital. Their carrying amount is €103 thousand and they are presented in the financial statements as a direct reduction of shareholders' equity under "Treasury shares". The item "Other reserves" includes the associated equity reserve in the same amount.

The Ordinary Shareholders' Meeting of May 26, 2020 approved the purchase of treasury shares on the market up to a maximum of 8,000,000 ordinary shares of doValue S.p.A., equal to 10% of the total, for a period of 18 months from the date of approval of the Shareholders' Meeting.

RESEARCH AND DEVELOPMENT

During the period the Group continued to invest in a number of technological innovation projects, which are expected to bring a competitive advantage in the future.

TRANSACTIONS WITH RELATED PARTIES

In compliance with the provisions of the "Rules for Transactions with Related Parties" referred to in Consob Resolution no. 17221 of March 12, 2010, as amended, any transaction with related parties and connected persons shall be approved in accordance with the procedure approved by the Board of Directors, whose most recent update was approved at the meeting held on November 7, 2019.

This document is available to the public in the "Governance" section of the company website www.doValue.it.

The universe of related parties of the Group changed near the end of the previous year

following the acquisition of the Fortress Investment Group LLC ("Fortress") by SoftBank Group Corp. ("SoftBank" or "SBG"). As a result of the transaction, SBG and its subsidiaries gained ownership of the shares of Fortress, which in turn held Avio S.à r.l., doValue's majority shareholder.

With regard to paragraph 8 of Article 5 - "Public information on transactions with related parties" of the Consob Regulations containing provisions relating to transactions with related parties (adopted by Consob with Resolution no. 17221 of March 12, 2010 and subsequently amended with Resolution no. 17389 of June 23, 2010), please note that:

a) on the basis of the policy concerning transactions with related parties adopted by the Board of Directors of doValue S.p.A. on November 7, 2019, during the first nine months of 2020 no transactions of greater importance were carried out;
b) during the first nine months of 2020 no transactions with related parties were carried out, as defined pursuant to Article 2427, paragraph 2 of the Italian Civil Code, on conditions different from normal market conditions that significantly influenced the performance and financial position of the Group;
c) during the first nine months of 2020 there were no changes or developments in individual transactions with related parties already discussed in the last annual report that had a significant effect on the Group's financial position or performance in the reference period.

DISCLOSURE ON THE OPT-OUT OPTION

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, as 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.

Rome, November 5, 2020 Board of Directors

STATEMENT RECONCILING THE RECLASSIFIED CONSOLIDATED INCOME STATEMENT AND THE STATUTORY CONSOLIDATED INCOME STATEMENT (€/000)

	9 /30/20 20	30/0 9/2019 RESTATED
NPE revenue s	209 ,789	173,6 54
o.w. Revenue from contracts with customers	207,433	157,068
o.w. Other revenue	2,356	16,586
REO reve nues	45,38 1	32,9 32
o.w. Revenue from contracts with customers	37,365	28,182
o.w. Other revenue	8,016	4,750
Co- investment re venues o.w. Financial (expense)/income	372 372	4 77 477
Ancillary and other reve nues	25 ,269	26,2 89
o.w. Financial (expense)/income	9	51
o.w. Revenue from contracts with customers	4,932	925
o.w. Other revenue	20,456	25,624
o.w. Costs for services rendered	(209)	(311)
o.w. Other operating (expense)/income	81	-
Gross reve nues	280 ,811	233,3 52
NPE Outsourcing fee s	(15 ,028)	(12,3 96)
o.w. Costs for services rendered o.w. Other revenue	(15,028) -	(12,395) (1)
REO Outsourcing fees	(11,004)	(5,143)
o.w. Costs for services rendered	(11,004)	(5,143)
Ancillary Outsourcing fees	(7 ,804)	(5,9 90)
o.w. Costs for services rendered	(4,134)	(2,516)
o.w. Administrative expenses	(3,588)	(3,118)
o.w. Other operating (expense)/income	(82)	-
o.w. Other revenue	-	(356)
Ne t revenue s	246 ,975	209,8 23
Sta ff expenses o.w. Personnel expenses	(121,782) (121,786)	(89,2 66) (89,270)
o.w. Other revenue	4	4
Administrative expenses	(57,152)	(4 1,7 85)
o.w. Personne l expenses	(2 ,973)	(1,515)
o.w. Personnel expenses - o.w. SG&A	(2,973)	(1,515)
o.w. Administrative expenses	(54 ,740)	(4 1,0 63)
o.w. Administrative expenses - o.w. IT	(18,800)	(12,462)
o.w. Administrative expenses - o.w: Real Estate	(3,849)	(3,682)
o.w. Administrative expenses - o.w. SG&A	(32,091)	(24,919)
o.w. Other operating (e xpe nse )	(5)	817
o.w. Other operating (expense)/income - o.w. IT o.w. Other operating (expense)/income - o.w. Real Estate	- (2)	- (37)
o.w. Other operating (expense)/income di cui: SG&A	(3)	854
o.w. Other re venue	625	-
o.w. Other revenue - o.w. SG&A	625
o.w. Costs for se rvic es rende red	(59)	(24)
o.w. Costs for services rendered - o.w. SG&A	(59)	(24)
Total "o.w. IT"	(18,800)	(12,462)
Total "o.w. Real Estate"	(3,851)	(3,719)
Total "o.w. SG&A"	(34,501)	(25,604)
Ope rating expenses EBITDA	(178 ,934) 68,04 1	(131,051) 78,7 72
EBITDA margin	2 4%	34 %
Non- recurring items included in EBITDA	(8,184)	(11,857)
EBITDA excluding non- recurring items	76,225	90,629
EBITDA Margin excluding non- recurring items	27%	39%
Ne t write- downs on property, pla nt, equipment and inta ngibles	(49 ,733)	(32,4 76)
o.w. Depreciation, amortisation and impairment	(49,733)	(32,476)
Ne t Provisions for risks a nd c harge s	(7,106)	(7,4 56)
o.w. Personnel expenses	(5,698)	(5,962)
o.w. Provisions for risks and charges o.w. Other operating (expense)/income	(418) (68)	(1,408) (86)
o.w. Depreciation, amortisation and impairment	(922)	-
Ne t Write- downs of loans	57	5 53
o.w. Depreciation, amortisation and impairment	3	182
o.w. Other revenue	54	371
Profit (loss) from equity investme nts	(2)	-
o.w. Profit (loss) of equity investments	(2)	-
EBIT	11,257	39,3 93
Ne t inc ome (loss) on financial assets and liabilities measured at fa ir value	23 1	1,0 93
o.w. Financial (expense)/income Financial inte rest and commissions	231 (12 ,360)	1,093 (4,8 93)
o.w. Financial (expense)/income	(12,188)	(4,742)
o.w. Costs for services rendered	(174)	(151)
o.w. Profit (loss) of equity investments	2	-
EBT	(872)	35,5 93
Non- recurring items included in EBT	(14,308)	(17,676)
EBT excluding non- recurring items	13,436	53,269
Income tax for the period	(7 ,906)	(20,2 83)
o.w. Administrative expenses	(1,290)	(1,366)
o.w. Income tax expense PROFIT (LOSS) FOR THE PERIOD	(6,616) (8 ,778)	(18,917) 15,310
Profit (loss) for the period attributable to Non- controlling interests	644	(2,015)
PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO THE SHAREHOLDERS OF THE
PARENT COMPANY	(8,134)	13,2 95

STATEMENT RECONCILING THE RECLASSIFIED CONSOLIDATED BALANCE SHEET AND THE STATUTORY CONSOLIDATED BALANCE SHEET (€/000)

Cash and liquid securities 170,267 128,162 Cash and cash equivalents 170,267 128,162 Financial assets 54,591 48,609 Non-current financial assets 54,591 48,609 Property, plant and equipment 39,113 23,904 Property, plant and equipment 39,058 23,767 Inventories 55 137 Intangible assets 257,497 289,585 Intangible assets 257,497 289,585 Tax assets 108,679 98,554 Deferred tax assets 92,939 90,740 Other current assets 1,296 6,673 Tax assets 14,444 1,141 Trade receivables 143,117 176,991 Trade receivables 143,117 176,991 Assets held for sale 10 10 Assets held for sale 10 10 Consolidation differences to be allocated 225,774 - Consolidation differences to be allocated 225,774 - Other assets 20,676 14,378 Other current assets 19,045 14,272 Other non-current assets 1,631 106 TOTAL ASSETS 1,019,724 780,193 Financial liabilities: due to banks 581,393 364,627 Loans and other financing non-current 496,585 284,944 Loans and other financing current 84,808 79,683 Other financial liabilities 95,823 69,642 Loans and other financing non-current 7 637 Loans and other financing current 4 - Other non-current financial liabilities 41,464 43,923 Other current financial liabilities 54,348 25,082 Trade payables 39,236 46,969 Trade payables 39,236 46,969 Tax Liabilities 37,459 32,806 Tax payables 21,113 17,461 Deferred tax liabilities 16,346 15,345 Employee Termination Benefits 10,595 8,544 Employee benefits 10,595 8,544 Provision for risks and charges 14,791 25,669 Provisions for risks and charges 14,791 25,669 Other liabilities 40,238 25,196 Other current liabilities 40,238 25,196 TOTAL LIABILITIES 819,535 573,453 Share capital 41,280 41,280 Share capital 41,280 41,280 Reserves 163,961 127,041 Valuation reserve (233) (13) Other reserves 164,194 127,054 Treasury shares (103) (184) Treasury shares (103) (184) Profit (loss) for the period attributable to the Shareholders of the (8,134) 38,603 Parent Company Profit (loss) for the period attributable to the Shareholders of the (8,134) 38,603 Parent Company NET EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY 197,004 206,740 TOTAL LIABILITIES AND NET EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY 1,016,539 780,193 NET EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 3,185 - Net Equity attributable to Non-controlling interests 3,185 - TOTAL LIABILITIES AND NET EQUITY 1,019,724 780,193	9/30/2020	12/31/2019 RESTATED

FINANCIAL STATEMENTS AT 30 SEPTEMBER 2020

CONSOLIDATED FINANCIAL

STATEMENTS

CONSOLIDATED BALANCE SHEET

(€/000)
		12/31/2019
	9/30/2020	RESTATED
NON-CURRENT ASSETS:
Intangible assets	257,497	289,585
Property, plant and equipment	39,058	23,767
Non-current financial assets	54,591	48,609
Deferred tax assets	92,939	90,740
Consolidation differences to be allocated	225,774	-
Other non current assets	1,631	106
Total non-current assets	671,490	452,807

CURRENT ASSETS:
Inventories	55	137
Trade receivables	143,117	176,991
Tax assets	14,444	1,141
Other current assets	20,341	20,945
Cash and cash equivalents	170,267	128,162
Total current assets	348,224	327,376

Assets held for sale	10	10

TOTAL ASSETS	1,019,724	780,193

SHAREHOLDERS' EQUITY:
Share capital	41,280	41,280
Valuation reserve	(233)	(13)
Other reserves	164,194	127,054
Treasury shares Profit (loss) for the period attributable to the Shareholders of the Parent	(103)	(184)
Company	(8,134)	38,603
Net Equity attributable to the Shareholders of the Parent Company	197,004	206,740

Net Equity attributable to Non-controlling interests	3,185	-

TOTAL NET EQUITY	200,189	206,740

NON-CURRENT LIABILITIES:
Loans and other financing	496,592	285,581
Other non-current financial liabilities	41,464	43,922
Employee benefits	10,595	8,544
Provisions for risks and charges	14,791	25,669
Deferred tax liabilities	16,346	15,345
Total non-current liabilities	579,788	379,061

CURRENT LIABILITIES:
Loans and other financing	84,812	79,683
Other current financial liabilities	54,348	25,083
Trade payables	39,236	46,969
Tax payables	21,113	17,461
Other current liabilities	40,238	25,196
Total current liabilities	239,747	194,392

TOTAL LIABILITIES	819,535	573,453
TOTAL NET EQUITY AND LIABILITIES	1,019,724	780,193

The RESTATED balance sheet amounts as at December 31, 2019 were restated based on the final outcome of the Altamira Asset Management purchase price allocation.

CONSOLIDATED INCOME STATEMENT

(€/000)

		30/09/2019
	9/30/2020	RESTATED
Revenue from contracts with customers	249,730	186,175
Other revenue	31,510	47,796
Total revenue	281,240	233,971

Costs for services rendered	(30,608)	(20,540)
Personnel expenses	(130,457)	(96,747)
Administrative expenses	(59,613)	(45,548)
Other operating (expense)/income	(78)	(86)
Depreciation, amortisation and impairment	(50,650)	(32,294)
Provisions for risks and charges	(418)	(1,408)
Total costs	(271,824)	(196,623)

OPERATING INCOME	9,416	37,348

Financial (Expense)/Income	(11,578)	(3,120)

PROFIT (LOSS) BEFORE TAX	(2,162)	34,228

Income tax expense	(6,616)	(18,918)


NET PROFIT (LOSS) FROM CONTINUING OPERATIONS	(8,778)	15,310

PROFIT (LOSS) FOR THE PERIOD	(8,778)	15,310
o.w. Profit (loss) for the period attributable to the Shareholders of the Parent	(8,134)	13,295
Company o.w. Profit (loss) for the period attributable to Non-controlling interests	(644)	2,015

The RESTATED income statement amounts as at September 30, 2019 were restated based on the final outcome of the Altamira Asset Management purchase price allocation.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(€/000)

	09/30/2020	30/09/2019 RESTATED

PROFIT (LOSS) FOR THE PERIOD	(8,778)	15,310

Other comprehensive income after tax not recyclable to profit or loss
Defined benefit plans	(279)	(460)

Other comprehensive income after tax recyclable to profit or loss
Cash flow hedges	(88)	(575)
Financial assets (other than equity instruments) measured at fair value through
comprehensive income	-	(4)
TOTAL OTHER COMPREHENSIVE INCOME AFTER TAX	(367)	(1,039)

COMPREHENSIVE INCOME	(9,145)	14,271
o.w. Comprehensive income attributable to Shareholders of the Parent	(8,501)	12,256
Company o.w. Comprehensive income attributable to Non-controlling interests	(644)	2,015

The RESTATED comprehensive income amounts as at September 30, 2019 were restated based on the final outcome of the Altamira Asset Management purchase price allocation.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

AT 30/09/2020

(€/000)

				All tio f p rof it oca n o		Ch du rin he g t ang es yea r				ity Ne t e qu	Ne ity t e qu
	lan Ba ce as 12/ 31 at	Ch ang es in nin ope g bal anc e			lan Ba ce at as 1/1	fro m p rev	iou s y ear		Equ ity tra ctio nsa ns		Co reh ive mp ens	rib ble att uta to Sh hol der are s	att rib uta ble to No n tro llin con g	Tot al N et ity Equ at the
	vio pre us			Res erv es	Div ide nds and her ot out pay s	Ch in ang es res erv es	Iss ue of new sha res	Sto ck opt ion s	Ch in ang es ity equ inv est nts me	inc t th om e a e iod per	of the Pa t ren Co at mp any the rio d pe	int st a t ere the rio d pe	iod per
Sha tal api re c	41, 280	-	4 1,2 80	-	-	-	-	-	-	-	41, 280	84	41, 364
Val uat ion re ser ves	(13 )	-	(13 )	-	-	-	-	-	-	(22 0)	(23 3)	(35 )	(26 8)
- R s fr ofit d/o ese rve om pr an r wit hho ldin g ta x	18, 607	-	1 8,6 07	38, 505	-	287	-	3 ,68 1	-	-	61, 080	756	6 1,8 36
the - O r	127 ,29 1	-	12 7,2 91	(18 7)	-	(22 ,07 5)	-	(1 ,91 5)	-	-	103 ,11 4	5	1 03, 119
har Tre asu ry s es	(18 4)	-	(18 4)	-	-	-	-	81	-	-	(10 3)	-	(10 3)
Ne rof it ( los s) for th eri od t p e p	38, 318	-	38 ,31 8	(3 18) 8,3	-	-	-	-	-	(8, ) 134	(8, ) 134	2,3 75	(5 9) ,75
Ne ity rib ble t e att uta to qu Sh hol der f th e P nt Co are s o are mp any	22 5,2 99	-	22 5,2 99	-	-	( 21, 788 )	-	1, 84 7	-	(8, 354 )	197 ,00 4		20 0,1 89
ity rib ble Ne t e att uta to No qu n tro llin g i nte ts con res	-	-	-	-	-	2,9 60	-	-	86 9	(64 4)		3,1 85	3,1 85
TO EQ TA L N ET UIT Y	22 5,2 99	-	22 5,2 99	-	-	( 18, 82 8)	-	84 1, 7	86 9	(8, 99 8)	197 ,00 4	3,1 85	20 0,1 89

AT 31/12/2019

(€/000)

			All tio f p rof it oca n o			Ch du rin g t he ang es yea r				Ne ity t e qu	Ne ity t e qu
	Ch lan Ba ce as at 12/ 31 ope vio pre us bal			ang es in nin g	lan Ba ce at as	fro iou m p rev s y ear		ity ctio Equ tra nsa ns			reh ive Co mp ens	att rib uta ble to Sh hol der are s	rib ble att uta No to n llin tro con g	al N Tot et Equ ity at the
		anc e		1/1	Res erv es	Div ide nds and her ot out pay s	Ch in ang es res erv es	Iss ue of new sha res	Sto ck ion opt s	Ch in ang es ity equ inv est nts me	inc t th om e a e iod per	of the Pa t ren Co at mp any the rio d pe	int st a t ere the rio d pe	iod per
Sha api tal re c	41, 280	-	4 1,2 80	-	-	-	-	-	-	-	41, 280	-	41, 280
Val uat ion re ser ves	591	-	591	-	-	-	-	-	-	(60 4)	(13 )	-	(13 )
s fr ofit d/o - R ese rve om pr an r wit hho ldin g ta x - O the r	13, 993 126 ,33 1	- -	1 3,9 93 12 6,3 31	- 14, 576	- -	- (14 ,86 3)	- -	4 ,61 3 1 ,24 8	- -	- -	18, 606 127 ,29 2	- -	18, 606 1 27, 292
Tre har asu ry s es	(24 6)	-	(24 6)	-	-	-	-	62	-	-	(18 4)	-	(18 4)
Ne t p rof it ( los s) for th eri od e p	50, 84 0	-	50 ,84 0	(1 4,5 76 )	(3 6,2 64 )	-	-	-	-	38, 318	38, 318	-	3 8,3 18
Ne t e ity att rib uta ble to qu Sh hol der f th Co e P nt are s o are mp any	23 2,7 89	-	23 2,7 89	-	(3 6,2 64 )	( 86 3) 14,	-	92 3 5,	-	37, 714	22 5,2 99	-	22 5,2 99
Ne ity rib ble No t e att uta to qu n llin g i tro nte ts con res	-	-	-	-	-	( 8) 17, 84	-	-	14, 78 7	3,0 61	-	-	-
TO EQ TA L N ET UIT Y	23 2,7 89	-	23 2,7 89	-	(3 6,2 64 )	( 32, 1) 71	-	92 3 5,	78 14, 7	40 ,77 5	22 5,2 99	-	22 5,2 99

AT 30/09/2019

(€/000) Balance as at 12/31 previous Changes in opening balance Balance as at 1/1 Allocation of profit from previous year Changes during the year Net equity attributable to Shareholders of the Parent Company at the period Net equity attributable to Noncontrolling interest at the period Total Net Equity at the Changes in period reserves Equity transactions Comprehensive income at the period Reserves Dividends and other payouts Issue of new sharesStock optionsChanges in equity investmentsShare capital 41,280 - 41,280 - - - - - - - 41,280 - 41,280Valuation reserves 591 - 591 - - - - - - (1,040) (449) - (449) - Reserves from profit and/or withholding tax 13,993 - 13,993 - - - - 4,616 - - 18,609 - 18,609 - Other 126,331 - 126,331 14,576 - (5,484) - (972) - - 134,451 - 134,451Treasury shares (246) - (246) - - - - 62 - - (184) - (184)Net profit (loss) for the period 50,840 - 50,840 (14,576) (36,264) - - - - 18,561 18,561 - 18,561Net equity attributable to Shareholders of the Parent Company 232,789 - 232,789 - (36,264) (5,484) - 3,706 - 17,521 212,268 - 212,268Net equity attributable to Noncontrolling interests - - - - - (30,920) - - 28,905 2,015 - - -TOTAL NET EQUITY 232,789 -232,789 - (36,264) (36,404) - 3,706 28,905 19,536 212,268 - 212,268

CONSOLIDATED CASH FLOW STATEMENT – INDIRECT METHOD -

(€/000)
	9/30/2020	9/30/2019 RESTATED
OPERATING ACTIVITIES
Profit (loss) for the period befor tax	(2,162)	34,228
Adjustments to reconcile the profit (loss) before tax with the net
financial flows:	64,448	36,316
Capital gains/losses on financial assets/liabilities held for trading and on
financial assets/liabilities measured at fair through profit or loss (+/-)	(1,232)	(1,093)
Depreciation, amortisation and impairment Change in net provisions for risks and charges	50,650 479	32,294 1,408
Financial (Expense)/Income	12,704	-
Costs for share-based payments	1,847	3,707

Change in working capital	33,976	32,644
Change in trade receivables	47,473	25,448
Change in trade payables	(13,496)	7,196
Change in financial assets and liabilities	(4,537)	7,998
Financial assets measured at fair value through other comprehensive	-	999
income Other assets mandatorily measured at fair value	(11,641)	2,294
Financial assets measured at amortised cost	7,104	(6,856)
Financial liabilities measured at amortised cost	-	11,561
Other changes:	(18,017)	(39,105)
Interests payed	(5,747)	-
Payment of income taxes	(7,437)	(8,201)
Other changes in other assets/other liabilities	(4,833)	(30,904)
CASH FLOWS GENERATED BY OPERATIONS	73,709	72,081

INVESTING ACTIVITIES Sales of inventories	82	809
Sales of property, plant and equipment	1,490	-
Sales of intangible assets	204	-
Sales of subsidiaries and business units	26	-
Purchases of property, plant and equipment	(17,416)	(967)
Purchases of intangible assets	(7,495)	(3,793)
Purchases of subsidiaries and business units	(211,333)	(360,998)
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(234,442)	(364,949)

FUNDING ACTIVITIES
Distribution of dividends and other	(1,875)	(36,264)
Loans obtained	252,568	406,959
Repayment of loans	(42,020)	-
Payment of principal portion of lease liabilities	(5,835)	-
NET CASH FLOWS USED IN FUNDING ACTIVITIES	202,838	370,695
NET LIQUIDITY IN THE PERIOD	42,105	77,827

RECONCILIATION
Cash and cash equivalents	128,162	73,444
NET LIQUIDITY IN THE PERIOD	42,105	77,827
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	170,267	151,271

The RESTATED ccash flow amounts as at September 30, 2019 were restated based on the final outcome of the Altamira Asset Management purchase price allocation.

RECONCILIATION OF PUBLISHED BALANCE SHEET AND THAT RESTATED AT DECEMBER 31 2019

(€/000)
		RESTATEMENT	12/31/2019
	12/31/2019	ADJs	RESTATED
NON-CURRENT ASSETS:
Intangible assets	340,879	(51,294)	289,585
Property, plant and equipment	23,767	-	23,767
Non-current financial assets Deferred tax assets	48,609 90,740	- -	48,609 90,740
Other non current assets	106	-	106
Total non-current assets	504,101	(51,294)	452,807

CURRENT ASSETS:
Inventories	137	-	137
Trade receivables	176,991	-	176,991
Tax assets	1,141	-	1,141
Other current assets	20,145	800	20,945
Cash and cash equivalents	128,162	-	128,162
Total current assets	326,576	800	327,376

Assets held for sale	10	-	10

TOTAL ASSETS	830,687	(50,494)	780,193
SHAREHOLDERS' EQUITY:
Share capital	41,280	-	41,280
Valuation reserve	(13)	-	(13)
Other reserves	145,898	(18,844)	127,054
Treasury shares	(184)	-	(184)
Profit (loss) for the period attributable to the
Shareholders of the Parent Company	38,318	285	38,603
Net Equity attributable to the Shareholders of the
Parent Company	225,299	(18,559)	206,740

TOTAL NET EQUITY	225,299	(18,559)	206,740

NON-CURRENT LIABILITIES:
Loans and other financing	285,581	-	285,581
Other non-current financial liabilities	43,922	-	43,922
Employee benefits	8,544	-	8,544
Provisions for risks and charges Deferred tax liabilities	25,669 24,886	- (9,541)	25,669 15,345
Total non-current liabilities	388,602	(9,541)	379,061

CURRENT LIABILITIES:
Loans and other financing	79,683	-	79,683
Other current financial liabilities	47,477	(22,394)	25,083
Trade payables	46,969	-	46,969
Tax payables	17,461	-	17,461
Other current liabilities	25,196	-	25,196
Total current liabilities	216,786	(22,394)	194,392

TOTAL LIABILITIES	605,388	(31,935)	573,453

TOTAL NET EQUITY AND LIABILITIES 830,687 (50,494) 780,193

RECONCILIATION OF PUBLISHED INCOME STATEMENT AND THAT RESTATED AT 30 SEPTEMBER 2019

(€/000)
	RESTATEMENT	RESTATEMENT	30/09/2019
	ADJs	ADJs	RESTATED
Revenue from contracts with customers	185,989	186	186,175
Other revenue	47,982	(186)	47,796
Total revenue	233,971	-	233,971

Costs for services rendered	(20,540)	-	(20,540)
Personnel expenses	(96,747)	-	(96,747)
Administrative expenses	(45,548)	-	(45,548)
Other operating (expense)/income	(86)	-	(86)
Depreciation, amortisation and impairment	(25,273)	(7,021)	(32,294)
Provisions for risks and charges	(1,408)	-	(1,408)
Total costs	(189,602)	(7,021)	(196,623)

OPERATING INCOME	44,369	(7,021)	37,348
Financial (Expense)/Income	(3,120)	-	(3,120)
PROFIT (LOSS) BEFORE TAX	41,249	(7,021)	34,228
Income tax expense	(20,673)	1,755	(18,918)
NET PROFIT (LOSS) FROM CONTINUING OPERATIONS	20,576	(5,266)	15,310

PROFIT (LOSS) FOR THE PERIOD	20,576	(5,266)	15,310
o.w. Profit (loss) for the period attributable to the Shareholders of the Parent Company o.w. Profit (loss) for the period attributable to Non	18,561	(5,266)	13,295
controlling interests	2,015	-	2,015

Certification pursuant article 154 BIS, paragraph 2 of Italian Legislative Decree no. 58 of 24 February 1998 (the Consolidated Financial Law)

Pursuant to Article 154 bis, paragraph 2, of the "Consolidated Law on Finance", Mrs Elena Gottardo, in her capacity as the Financial Reporting Officer with preparing the financial reports of doValue S.p.A, certifies that the accounting information contained in the 'Consolidated Interim Report as at September 30,2020 ' is consistent with the data in the supporting documents and the Group's books of accounts and other accounting records.

Rome, November 05, 2020

Elena Gottardo

Financial Reporting Officer

AI Terminal

Dovalue

4145_10-q_2020-11-06_4b472794-8008-4277-b323-a3e37617e2cd.pdf

Consolidated Interim Report as at September 30, 2020

Governing and control bodies

BOARD OF DIRECTORS

BOARD OF STATUTORY AUDITORS

GROUP STRUCTURE

NOTES TO THE CONSOLIDATED INTERIM REPORT

Basis of preparation

Scope and method of consolidation

Accounting policies

DIRECTORS' INTERIM REPORT ON GROUP OPERATIONS

The Group's business

Group highlights

Key

Group results as at September 30, 2020

PERFORMANCE

Portfolio under management

GBV declined over the period due to transfers by a bank customer amounting to €1.3 billion.

Performance

(€/000)

SEGMENT REPORTING

Group Financial Position

INTRODUCTION

The following is a breakdown of intangible assets.

Tax assets as at September 30, 2020, break down as follows:

NET WORKING CAPITAL

NET FINANCIAL POSITION

OPERATING CASH FLOW

Significant events during the period

ONBOARDING OF NEW LOAN PORTFOLIOS

NEW CREDIT SERVICING AGREEMENTS

ACQUISITION OF EUROBANK FINANCIAL PLANNING SERVICING (FPS), NOW DOVALUE GREECE

ASSIGNMENT OF CORPORATE RATING BY S&P AND FITCH

PRICING OF THE SENIOR SECURED BOND

OUTSOURCING OF FUNCTIONS - DOVALUE CHOOSES IBM AS A PARTNER FOR DIGITAL TRANSFORMATION AND MANAGEMENT OF THE GROUP'S IT SYSTEMS

ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING

Significant events after the end of the period

NEW CREDIT SERVICING AGREEMENT

Outlook for operations

Main risks and uncertainties

Impacts and effects of the COVID-19 epidemic

Evaluations pursuant to IAS 36 "Impairment of assets"

Uncertainties and significant risks related to COVID-19

Impact of the COVID-19 epidemic on the income statement

Information on the impact of COVID-19 on strategic planning and plan targets, economic performance, financial position and cash flow

Other information

MANAGEMENT AND COORDINATION

TRANSACTIONS IN TREASURY SHARES

RESEARCH AND DEVELOPMENT

TRANSACTIONS WITH RELATED PARTIES

DISCLOSURE ON THE OPT-OUT OPTION

STATEMENT RECONCILING THE RECLASSIFIED CONSOLIDATED INCOME STATEMENT AND THE STATUTORY CONSOLIDATED INCOME STATEMENT (€/000)

STATEMENT RECONCILING THE RECLASSIFIED CONSOLIDATED BALANCE SHEET AND THE STATUTORY CONSOLIDATED BALANCE SHEET (€/000)

FINANCIAL STATEMENTS AT 30 SEPTEMBER 2020

CONSOLIDATED FINANCIAL

CONSOLIDATED BALANCE SHEET

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

AT 30/09/2020

AT 31/12/2019

AT 30/09/2019

CONSOLIDATED CASH FLOW STATEMENT – INDIRECT METHOD -

RECONCILIATION OF PUBLISHED BALANCE SHEET AND THAT RESTATED AT DECEMBER 31 2019

RECONCILIATION OF PUBLISHED INCOME STATEMENT AND THAT RESTATED AT 30 SEPTEMBER 2019

Certification pursuant article 154 BIS, paragraph 2 of Italian Legislative Decree no. 58 of 24 February 1998 (the Consolidated Financial Law)

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