Dovalue — Investor Presentation 2018

Jun 19, 2018

doBank Business Plan 2018-2020

London June 19, 2018

Today speakers

Andrea Mangoni Fabio Balbinot Carlo Vernuccio

Group CEO Head of Servicing Head of NPL Management

Stathis Andrianakis Andrea Giovanelli

doBank Hellas Manager

Head of UTP & Banking

Manuela Franchi

Chief Financial Officer

Section	Speaker		Indicative Timetable
Strategic highlights of business plan 2018-2020	Andrea Mangoni	09:30	10:00
Deep dive on market opportunity	Fabio Balbinot, Stathis Andrianakis	10:00	10:40
1st Q&A session		10:40	11:00
Coffee break		11:00	11:15
The NPL factory	Carlo Vernuccio, Andrea Giovanelli	11:15	11:55
Financial review	Manuela Franchi	11:55	12.20
Closing remarks	Andrea Mangoni	12.20	12:25
2nd Q&A session		12:25	12:50
Lunch		12:50

Strategic highlights of business plan 2018-2020

Andrea Mangoni – Group CEO

doBank today

Leader in the largest NPL market in Europe

• Servicing €88bn GBV in Italy
• Highest rated by S&P and Fitch
• "Pure play" servicer with asset light business model
• Among the few European independent servicers

Focused on high value-added NPL value chain

• Corporate: 71% of GBV
• Secured: 80% of GBV
• Mid/large loan size:
• €120k avg. loan size
• 53% of loans > €500k
• Diversified: banks 31%, investors 69% of GBV

Highly visible revenue base

• Ca. 90% of revenues from long-term contracts
• Base fees help cover fixed cost and optimize collections timing
• Strong profitability and cash flows
• Business can grow scale without adding meaningful costs
• 92% operating cash flow conversion

Key figures 2017
Large portfolio and best-in-class collections	GBV 1Q 18	€88bn
	Collections	€1.8bn
Highly visible revenues and	Gross revenues	€213m
scalable operating platform	EBITDA margin	33%
High cash conversion and	Dividend pay-out	70%
dividend pay-out	Net Cash position	€39m

Unique business model combining growth, stable cash flows and defensive/countercyclical features

Strategic pillars of IPO plan

Plan execution: a solid base for continued growth

Track record since IPO

	Assumptions of IPO plan	Execution in 2017 and 1Q18
Grow GBV	 Add new GBV (ca. €18bn by 2019)  Increase client diversification and contract length  Increase weight of investors vs. banks (40%/60% at IPO)	+€3bn in 2017, +€12bn in 1Q18 already  All new GBV won from new clients with longer average  portfolio maturity  Investors at 69% of GBV vs 40% at IPO	Above expectations
Improve Collections	 Growth in absolute collections  Collect more per unit of GBV  Collect more per employee	+3% in FY 2017 despite declining GBV  Collection rate at 2.4% from 2.1% in 2016   Collections/FTE at €2.5m from €2.2m in 2016	In line with expectations
Develop Ancillary revenues	 Ancillary and other revenues at 10% of Group revenues by 2020  Grow client base and product offer	 Ancillary at 9.3% of Group revenues in 1Q18  New contracts with FINO and Unicredit in 2H17, new data quality and judicial management services in 1Q 18	In line with expectations
Grow profitability /operating leverage	Significantly expand margins  Grow GBV with little extra cost   Cost reduction in IT/SG&A/RE	 33% EBITDA margin in FY 2017 (31% in 2016)  Stable cost base despite growing revenues Tangible results from SG&A/RE cost cutting (-16%YoY) 	In line with expectations
Generate Cash flow and pay out dividends	 Maintain a high cash conversion  Pay-out at least 65% of net income  Grow net cash position for co-investment and M&A opportunities	 92% operating cash flow conversion in FY2017  70% dividend payout on 2017 net income  €30m co-investment Net Cash position at €48m in 1Q18 	Above expectations

Improvements in all main metrics

Main operational achievements during last 12 months

In 2017 and in 1Q 18, doBank reached important results also in terms of operational target sustaining its financial growth and confirming its capability to manage large and complex transactions

FINO on-boarding

€17bn portfolio on-boarded both as master and special servicer

New Contracts on-boarding

doBank on-boarded €12bn of new contracts (of which more than €8bn from MPS securitization)

Greece set-up

Branch setup obtaining the authorization to operate through passporting process First international branch of the Group, fully operational, ready to on-board and active in business development

Massive on-boarding operations and first international venture confirming doBank's execution capabilities

Distinctive positioning in the NPL value chain

Today's objectives

1	Present the targeted new transformational Group Structure  From a banking Group to a corporate structure with separate banking license unlocking capital potentials for M&A
2	Update on market opportunities ahead of us  Extract value from current bad loans scenario in Italy Significant potential in contiguous markets 
3	Describe doBank's unique operating platform  "Open the box" to explain the complexity and uniqueness of the business model
4	Share an ambitious cost efficiency and ICT investment plan Confirm inherent operating leverage, disruptive actions on fixed  cost base and IT investments to confirm innovation edge
5	Targets 2018-2020 Present doBank in 2020: a larger, stronger, more diversified, more profitable company 

Transformational Project: from a Banking to a Servicing group with separate banking license

• Heritage "banking Group" status limits growth potential
• Most of doBank competitors are not banks both in Italy and abroad
• Banking activities today add limited upside under current group structure
• M&A capped by capital requirements

Today Tomorrow

• Simpler regulatory framework
• Fully exploit debt capacity to grow current platform in Italy, Greece and other international markets, creating value for shareholders
• Greater focus of business units with specialized product offering by company
• Higher economies of scale
• Maintain benefits of banking license
• Cost synergies and cost reduction
• Tax efficiencies

doBank is today better equipped to exploit further market opportunities

How the Group re-organization will be executed upon regulatory clearance

• New structure envisages a Servicing Group with a banking subsidiary, in line with new business mix
• Regulatory process initiated in May with Bank of Italy/ECB, targeted completion by year-end

New Group structure unlocking full potential of servicing business

• 1. Art.115 TULPS (public security law) and following sections regulate the special servicing licensing and activity for non banking and non financial companies
• 1. Previously IBIS
• 1. Pending clearance by Bank of Italy
• 1. Regulated by Bank of Italy

Most relevant economic benefits from transformational project

Align Corporate Structure to actual business needs	The resulting structure of the Group will include:  The listed company that will operate as a pure Special Servicer ruled under  art. 115 and will also act as holding company Italfondiario specialized in Master Servicing and securitization services (ruled  under Art. 106 TUB) New Bank specialized in UTP and Specialty Finance services creating potential  upside. doBank Hellas part of banking subsidiary All current Master servicing activities of doBank transferred to Italfondiario and all  Special Servicing of Italfondiario transferred to doBank
Increased Investment Capability	The creation of New Bank and Italfondiario in line with the actual needs of the Group  will entail lower capital requirements Enable the new listed holding company to raise leverage and free up capital to  finance M&A and compete with its European peers
Simplify regulatory framework	Revisit regulatory implications and make more efficient control functions  Align the perimeter of the regulated activities to the actual businesses  The listed company subject to a simplified regulatory framework 
Achieve operating synergies	New Bank requires defined resources and independent outsourcing model  All Special Servicing and Ancillary services activities onto one single platform allow to  reduce operating costs Tax efficiency from bank to corporate to be maintained in the long run (from 33% to  28%) despite re-alignment of DTA value in 2018/20191

New organizational structure

Rationale of new organizational structure

• New organizational structure is part of Business Plan 2018- 2020
• Reduction of direct reporting lines to CEO, streamlining decision making
• Creation of new areas of responsibility:
• Servicing: development and management of core business, ancillaries and Greek Branch
• Operations: support functions, technology and data governance
• UTP and banking: dedicated management of Unlikely to Pay servicing and new Bank

A streamlined reporting structure to facilitate decision making and Plan execution

Servicing market to offer significant growth potential

		Market update	doBank Strategy
s s e n si u b e r o C	Bad loans servicing Italy	 Servicing market at ca.240bn in M/T  Regulatory framework still supportive, lots of work to do for banks: Total new inflows (including portfolio sales):  €84bn in 2018E, €20bn in 2019E, and €13bn in 2020E  Growing outsourcing levels  Following jumbo deals, market focused on mid-sized GACS transactions and platform sales with long-term flow agreements	 Maintain distinctive positioning  Protect premium pricing  Add revenues per unit of GBV  Deploy operating leverage "Do more with less" 
s u s	UTP servicing Italy	UTP exposures expected to become the next  area of focus for banks' asset quality  Servicing market at €18bn in 2018E, expected at >€25bn in M/T	 Maintain leadership in the Italian market  Grow internal capabilities  Focus on product knowledge and client relationship
o s e u n g si ti n u o b C	UTP and bad loans servicing Greece	Early stage market with significant growth  potential and no incumbent  €40bn NPL reduction by 2019 target by BoG/SSN out of more than €90bn total NPL	Finalizing first contract with 4  systemic banks  Establish leadership and transfer operational excellence

Confirmed focus on core Italian Bad Loans market while adding new sources of growth by products and countries

doBank's unique operating model

• Scalable infrastructure will support growth without incurring material costs
• Huge local knowledge through the network across all the Italian courts

People: first pillar of doBank growth

• Reward mechanisms are crucial for performance results and also for quality of management both internal and external
• doBank currently trains both the internal and external network with courses dedicated to legal and out-of-court settlements, courses on the use of management software and portfolio management also through the use of ABI

Reward Mechanism				Academy for new AMs
		Basis	Reference	Key Features	6th edition of the doBank Group academy 
	Primary target	Individual & Team	Collection	Divided in periods   Easy and clear calculation target as % of collection	 730 participants to the program of which 150 asset managers hired during the last years  Last edition in May 2018  More than 80 hours of in-class-training  Working side by side with experienced asset manager
Internal Network	Secondary target	Portfolio (long term)	Business plan, collection distribution index, database quality etc.	 Bonus is paid if the periodic target are met  Bonus could be doubled if the Team hits the annual target	Training  Credit Management  AML Internal  Negotiation resources  Risk Management
External Network	Contest	Individual & Company	Collection	 Divided in periods The contests are  linked to recovery target or to specific projects	 Real Estate ~3,000 participants External  Management Platform lawyers &  Listening Meetings consultants

IT capabilities – Transformation plan post migration

Migration of the IT Platforms into One

In parallel with the merger of the Special servicing activities of doBank and Italfondiario once transferred to doBank, the current doBank's portfolio will be migrated onto Italfondiario's proprietary platform (IFAMS – Italfondiario Asset Management System)

Implementation	Expected results	KPIs improvement
Management workflow integration	Higher collections efficiency	Collection / Servicing FTEs
Consolidation of	Higher workloads by asset manager	Revenues / Servicing FTEs
proprietary IT platform	IT cost savings	IT running cost savings
Back office rationalization	Efficiencies from back office automation	Staff FTEs efficiency
Ongoing – Expected	and rationalization

Migration of the IT Platform and merger of the Special Servicing activities will continue the improvement of Group's operating efficiency

closing in 1H19

Ambitious cost efficiency plan

	Plan Milestones	2020 Targets vs. 2017
Outsourcing Fees	Integration of IT platforms with right sizing of internal  and external network	Progressively reduce ratio of outsourcing fees on  gross revenues Small loans: increase outsourcing   Medium and large loans: increase insourcing
HR costs	 Geographical rationalization of staff and support functions in line with new Group structure  New hiring related to new business	Despite revenue growth and ramp up of new  businesses, limited FTE growth vs revenue growth  Strengthen high potential new businesses  Optimize support and low growth potential businesses
Real Estate Costs	 Re-organization of the geographical footprint  Rental cost of local offices under control  Smart working pilot	 Continued cost reduction and footprint optimization plan
SG&A Costs	Continuous effort to control and rationalize SG&A  costs  Centralization of purchasing  Digitalization and automation of back-office activities	Support startup and ramp up of new business,  expected to progressively reduce as a percentage of revenues
IT Costs	 IT investments to:  Maintain technological leadership in servicing  Reduce operating expenses already from 2019  Harvest the potential of own data through analytics	 Investments in 2018 and 2019 to yield significant tangible results from 2020 onwards  Baseline cost reduction due to operating efficiency gains enabled by IT investments

EBITDA growth at >15% CAGR in 2017A-2020E

Key strategic pillars of doBank business plan

doBank in 2020 and beyond

	2018E	2020E
Gross Revenues	 Gross revenues at more than €230m New GBV additions at €15-17bn  total for the year 2018 Collections above €2bn   Protect premium pricing Continue to grow revenue per GBV 	 8%-9% Gross Revenues CAGR in 2017A-2020E: New GBV:   +€15bn in Italian bad loans (on top of 1Q18 GBV on boarded)  Ramp-up UTP and Greek platform New bank as potential upside   Protect premium pricing, growth in collection efficiency  Ancillaries to complete core business and provide recurring revenues
EBITDA and EPS	Ordinary EBITDA margin expansion   Increase in HR cost, partially compensated by lower SG&A  Greek operations and UTP, new Bank start-up costs of c.€3m	>15% EBITDA CAGR, EPS CAGR > EBITDA CAGR   Significant efficiencies coming on stream  Exploit operating leverage  doBank-Italfondiario integration of management model  Impact of new Group organization
Cash flows and leverage	 Confirmed commitment to high-levels of cash conversion  Dividend payout policy confirmed at >65% of consolidated ordinary Net Income  Debt/Ebitda	New organizational structure to allow use of B/S strength for accretive M&A opportunities up to 3x Net

doBank in 2020: a more profitable and more diversified company

Deep dive on market opportunity

Fabio Balbinot – Head of Servicing Stathis Adrianakis – DoBank Hellas manager

European NPL servicing: highest potential in Southern Europe

Common attractive features in Italy, Greece and Southern Europe

• Significant market size and complexity
• Opportunity for doBank to leverage on its proven credit management track record
• Need for specialized players to improve and speed-up collections in the system
• Asset quality targets unlikely to be met through collections by banks' servicing units
• Data, technology, process advantage of servicers unlocking superior collection rates

Footprint today

• Italy: developed market where doBank entered 20 years ago and secured, large, attractive and long-term mandates
• Greece: early stage market with no incumbent and possibility for doBank to transfer its Italian track record and positioning

NPL exposure and macro highlights

Servicing market potential – Screening criteria

• Market size and deleveraging targets
• Presence of global investors
• Complex legal system
• Collateral management
• Market timing: servicing in early stage (greenfield entry) or in consolidation phase (M&A option)

Tier 2 targets Tier 1 targets

Macroeconomic view – moderate growth, below EU average

• Italian macro indicators point towards a moderate improvement, pre and post new Government
• 2018E GDP growth +1.5% (EU-28 avg. +2.3%)
• 2018E unemployment rate 10.85% (EU-28 avg. +7.1%)
• The real estate market is showing tangible signs of rebound:
• Price levels steadily improving from the May 2015 low and up +1.2% on a YoY basis in April 2018 (Nonresidential +0.4%, Residential +1.4%)
• Transaction volumes are picking up, led by industrial properties
• Number of successful auctions increased by 71% since 2015 with nearly 30% of auctions resulting in sale¹

Macroeconomic environment²

Real Estate transactions trend (2004-2016)³

Italian banking sector – asset and profitability trend

Italian banks - total loans and loan default rate¹

Italian Banks RoTE vs Euribor 3M and Gov't bond yields (%)²

• Italian banking system stabilized but still facing challenges:
• Capital restored with capital ratio at about >13%
• NPL coverage increased to 51%
• Loans to both corporates and households still significantly below historical highs
• Recent improvement in loan default rates but above pre-crisis levels
• Depressed levels of profitability remain a key issue for the Italian banking sector, despite recent improvements
• Increase in interest rate beneficial for Bank NII but challenge asset quality improvements
• Sovereign risk impacting margins and capital

Better profitability and capital facilitate proactive asset quality management

1: Source: Bloomberg, Bank of Italy 2: Bloomberg, Company data

Top Italian Banks for NPL stock and main transactions

• Looking forward, Italian banks have set ambitious asset quality targets and are focused on an accelerated execution
• Role of independent servicers key to execution, internal platforms unlikely to be sufficient
• doBank took a leading role in the most relevant transactions in the Italian NPL market confirming its leadership

Bank	Bad Loans (€bn)	Other NPLs (€bn)	Total (€bn)	NPL Ratio Target1	Target Year	Platform acquirer	doBank Client
	34	18	52	6.0%	2021	doBank (2005) Intrum (2018)
	29	22	50	7.8%	2019	doBank (2015)
	33	12 45		12.9%	2021	Sirio (2017)
	16 10 26			12.9%	2019	Process announced and ongoing
	7 6 13			11.9%	2020	n.a.
	9 4 13			n.a.	n.a.	n.a.
	11 7 3			13.5%	2020	n.a.
	5 3 2			16.4%	2020	Credito Fondiario (2017)

Source: Banks' FY reports 2017/business plans, PWC report: Update on the Italian NPL servicing market (June 2018) 1. Gross NPL Ratio Target

Italian banks NPLs expected to stay above EU average in M/T

There will be plenty of work to do on banks' asset quality in the medium term before the next cycle

Regulatory framework continues to be supportive

• ECB became single supervisory mechanism taking over regulation of Europe's largest systemic banks
• ECB implemented asset quality reviews increasing banks provisioning against NPLs

2014- 2016 GACS scheme

• NPL securitizations backed by the Italian government to increase liquidity of the NPL market
• Expires in September 2018 (possible renewal to the ECB)

ECB guidance on NPLs

Pressure on banks to review their strategies and operating models on NPLs reporting the NPL reduction plan

New accounting treatment under IFRS9

• EBA enhanced disclosure guidance
• Covering asset quality and NPLs and standardized data approach to all NPLs
• Addendum to the ECB guidance on NPLs specified that all new NPLs must be provisioned within 2 years (unsecured) and 7 years (secured)
• Expansion of the ECB guidance to less significant Banks

EBA guidelines on NPLs, Banks required to outline a strategy to reduce stock and avoid future build-ups

• European Commission proposals facilitating cross border activity of NPL Servicers and investors and supporting out-of-court settlements
• European Commission Recommendations to Italy to reduce NPL stock and length of legal procedures

2018

2017

A growing Italian NPL Servicing Market

• Italian system still burdened by a significant stock of NPL in the medium term (over €300bn today)
• Portfolio sales by banks and GACS securitizations represent a key tool to meet AQR targets while impact of internal workout units remains slow
• Portfolio sales/de-consolidation trend supportive of increased NPL ownership by investors and higher involvement of independent servicers

• Current doBank cautious planning assumptions assume no near-term negative economic cycle in Italy but a new economic cycle has positive impact on stock

• Source: PWC report: "update on the Italian NPL servicing market (June 2018)"; data includes NPLs owned by both banks and investors Actual NPL exposure data for SPVs and other intermediaries includes impact of write-offs; Coherently with doBank reporting and industry standards, NPL servicing market data does not include impact of write-offs of sales from banks to SPVs or other financial intermediaries

Italy Bad Loans strategy confirmed: profitable growth to continue

1. Win servicing mandates to confirm leadership position in Italian NPL Special and Master Servicing 2. Increase collections and collections efficiency to extract maximum value from portfolio under management 3. Increase revenue per unit of GBV by leveraging on a complete suite of Ancillary services 1 2 3

Bad Loans growth pillars	Strategic priorities	2018E-2020E Targets
1
Add GBV and	Confirm leadership in Italian Bad Loans Special and Master Servicing	2018E: total New GBV wins at €15-17bn (€3-5bn on top of what announced with 1Q18 results)
Grow collections	Selective approach to new mandates to deploy operating leverage at best returns	2018E-2020E: €15bn new GBV wins (Italian bad loans only)
2		Progressive improvement in:
Increase collection efficiency	Internal efficiency and innovation levers to support an organic improvement in	Collection Rate: above 2.6% by 2020E (2.4% in FY 2017)
	collection rates	Collection/FTE: above €2.8m by 2020E (€2.5m in FY 2017)
3 Complete service	Rollout of Ancillary services primarily targeting captive clients, offering a one-stop shop solution	Increase revenue per unit of GBV via ancillary services
offering via ancillaries	Specialized banking services to complete product offer of core NPL services	Upside non included in Business Plan: non-captive clients and growth via M&A

Italy UTP: significant exposure in need of proactive management

UTP exposures expected to become the next issue for banks' asset quality

• Net Book Value exposure higher than bad loans
• Significantly lower coverage ratio with higher impact in case of shift to NPL
• IFRS 9 more sensitive to change of classification from performing to UTP

UTP composition mirrors that of bad loans

• Highly skewed towards corporate loans
• Highly concentrated among top Italian banks
• Significant proportion of common exposures among banks
• Need to improve current UTP management
• 4 years after the beginning of the restructuring procedure, >62% of positions are still being restructured
• 50% of UTP stock at the beginning of 2017 stayed UTP at YE 2017
  • 7% went back to performing
  • 16% moved to bad loans

2017YE Italian Banks' UTP gross size and coverage

Italy UTP: increased opportunity in the servicing market

• The Regulator, in defining the Guidance to banks on NPLs, expects that Banks implement a proactive management to NPLs, much like Bad Loans management
• 1. Portfolio segmentation
• 1. Borrower's analysis
• 1. Early warning system
• 1. NPL operating model
• Some UTP sales by banks executed in 2017, several processes currently ongoing (small and medium size portfolios)
• Bid/ask spread still too wide for banks to engage in transactions of significant size, need to find structures which allow for proactive management by servicers and limited loss for banks
• doBank already managing the largest UTP portfolio (ca. €2bn) as an independent servicer in Italy, currently strengthening its capabilities in corporate restructuring

Source: PWC report "Update on the Italian NPL servicing market (June 2018)"

Competitive dynamics in the Italian NPL Market

doBank enjoys the most diversified product offer and the largest scale among peers both in Special & Master Servicing

1. PWC report "Update on the Italian NPL servicing market (June 2018)" - Intrum ISP data considering the ISP transaction of April – Cerved excludes Barclays performing loans – doBank GBV as of Q1 2018 33

Highest rating in the sector in Europe and solid reputation

• Key servicer rating mainly driven by
• Management
• Organization (e.g. staff, operational structure)
• Asset/loans administration (procedures, collection efforts and results)
• Financial position
• Best-in-class rating underpinned, among others, by:
• "Best practices evidenced by superior performance metrics and vendor management controls" (Fitch)
• "Highest ability, efficiency, and competence in managing large and highly diverse asset portfolios" (S&P)
• Special Servicer Rating is a key variable for the assignment of credit ratings to NPLs securitization tranches by rating agencies

Highest Special Servicer Rating assigned by rating agencies compared to other players since 2008. Fitch confirmed Special Servicing Rating RSS1-/Css1- for the 9th year in a row and assigned Master Servicer rating of RMS2/CMS2/ABMS2 in July 2017

Greek market opportunity

• NPL management is the biggest challenge of the Greek banking system due to the size of NPLs (€94.4bn as of YE 2017) and the impact it could have on the recovery of the real economy
• Greece is an early stage market without a real servicing sector and with a new regulatory framework defined in 2016
• All stakeholders understand that the creation of a servicing market for NPLs would allow the banks to manage or sell portfolios more efficiently

Greek NPL Landscape

	New Legal resolution framework
Legal Reforms	Judicial Reforms	Servicing Player Establishment
New classification for Greek debtors  with less protective approach	Establishment of special chambers in  Peace Courts	New legal framework for experienced  NPL management companies to attain
New legal framework for bankruptcy 	Pending cases categorization 	resolution, offer investment opportunities & ultimately instigate recovery
 Changes in the framework to improve the efficiency of the Law	 Communication and information reforms
New auction process to sell properties 	New legislation to expand the Asset  Registry to include deposits, GGBs, mutual funds, overseas fixed / moveable assets, etc.

Servicing Market

• 1 central liquidator of all Bad Banks appointed in 2016 called PQH as JV between PWC, Qualco and Hoist, and is mandated by the BoG to liquidate €9bn of NPLs generated by 16 bad banks
• More than 10 licensed NPL servicers in Greece, all licensed since summer 2017. None of them is allowed to provide loans for refinancing. The probably most advanced in the set-up are:
• Cepal: 43% Alpha Bank and 57% other shareholders (incl. Centerbridge) which has already transferred €500m of residential mortgages to it for servicing and it's focalized on small unsecured
• FPS (100% Eurobank) focused on Eurobank SBL and consumer loans

doBank is the only Bank servicer, managing all NPL, focusing on corporates and with the ability to finance restructuring transactions

Greek Branch Structure

• doBank set-up its first foreign branch in 1Q18 through passporting of banking license
• Branch operative since April with c.30 FTE by June 2018 specialized in both NPL liquidation and restructuring with Greek talent and additional Italian staff involved in the project
• Simple structure with defined roles to ensure independence of specialists and a streamlined decision-making process
• The platform will be responsible for all strategic, tactical and support activities across the NPL value chain and utilizes a network of real estate brokers and lawyers which replicate the Italian business model

Platform Organization, roles and responsibilities

doBank Hellas merges a very experienced Greek team with the support of doBank Group and its 20 years track record

doBank approach to SME common exposures in Greece

The Context	Main benefits of the approach
The consolidation of the Greek banking  market naturally brought debtors to have exposures to the four banks This affects NPL management (bad loans and  UTP) mainly in two ways:  Very high cost to service exposures  Collateral asymmetry among the involved parties, making resolutions, both restructuring and liquidation, more difficult  The issue is particularly evident in SMEs, which are many, for which the banking system cannot rely on a sufficient number of asset managers to carry on effective resolutions	Making un-cooperative borrowers  cooperate through coordinated legal pressure  Avoiding individual action turning viable clients into liquidation cases Maximize value  High level delegation and reducing NPL  Reduction in cost due to access to a full data set regarding the borrowers and reduced duplication Cost optimization through the  management of the loans as a syndicated exposure
Recent updates	 Develop additional capabilities across the entire value chain thanks to doBank Facilitate sustainability  Optionality new funding to restructuring
doBank is currently in the final exclusive  negotiation stage with the four local systemic	of Greek SMEs cases and flexibility of using different financing instruments
banks for a €1.8 billion servicing mandate (GBV)	 From retaining the full legal and Enable asset economic ownership of the assets to deconsolidation target future asset deconsolidation

Greece Additional Potential Development

NPL Stock in the Greek Market 2Q17 -YE19¹

• Portfolio sales estimated at ca. €12bn by 2019 (60% unsecured, 40% SME/Corporate secured), system needs collections beyond Greek banks current capabilities
• doBank accredited with top European investors:
• First established servicer for secured portfolios
• Expected agreement with 4 systemic banks
• More transactions likely with the 4 banks
• doBank ambitions: grow platform beyond initial mandate and win mandates from Investors and Banks

Recent deals in the market

Buyer	Seller	Size	Type
Intrum	Eurobank	€1.5bn	Unsecured
B2Holding	Alpha Bank	€3.7bn	Unsecured
Intrum/Carval	NBG	€5.1bn	Unsecured
Bain	Piraeus Bank	€1.9bn	Secured

Market Servicing pipeline

Portfolio sale pipeline – 2018 only

• Piraeus Bank: €2bn corporate secured +€2bn unsecured
• National Bank of Greece: >€2.5bn unsecured portfolio
• Alpha Bank: €1bn secured portfolio
• National Bank of Greece: €0.6bn secured portfolio

The NPL factory

Carlo Vernuccio – Head of NPL management Andrea Giovanelli – Head of UTP and Banking

Expanding across the value chain

doBank has decided to grow value by exploiting its NPL skills in contiguous products (UTP & Banking) and markets (Greece and potentially others)

doBank positioning in high value activities as a pure servicer

NPL ownership Advisory and strategy Credit collection Purchase of credit portfolios or securitizations Master servicing Due diligence Real estate advisory Collection enforcement Co-Investors Valuation advisors Debt purchasers RE advisors Master servicers Debt collections agencies NPL Servicers PE funds NPL management is a non core activity for banks & corporates doBank is a unique player that can cover all credit management phases doBank is not a debt purchaser but has a capital light business Co-investment is instrumental to obtain servicing contracts doBank is not a Debt collection agency (DCA) but an NPL servicer NPL servicers are focused on elaborating and executing individual collection strategies with a high level of specialization model, integrating different activities as real estate management, commercial information and legal activities DCAs are focused on massive collection through phone and home collectors, with significant involvement of FTEs and low margins Phases of NPL Management Players of NPL Management Extrajudicial Judicial Large tickets Small tickets Secured Unsecured Single agreements Extra-judicial foreclosure Foreclosure procedures Bankruptcies Repossession Asset repossession Massive standardized Homephone collection Distrains on salaries, wages or bank accounts NPL servicers DCAs High value added activities

Focus on NPL: Product and Services offering

Product / Service	Description	Company	Revenue Driver
1 Credit management	 Includes three main activities: (i) credit management, focused on judicial / extrajudicial credit recovery, (ii) management & disposal (e.g. REOCO) of assets used as guarantees for NPLs or expired leasing contracts, (iii) administrative activities to support recovery processes		 Base fee: tied to GBV  Collection fee: tied to yearly collections
2 Master Servicing & securitization	 Includes all administrative activities aimed at coordinating special servicer(s) underlying securitization projects  Structuring of the securitization includes SPV incorporation, loan transfer, technical characteristics of the issuance, rating process and securities distribution  Italfondiario operates as "soggetto incaricato" (entity responsible for the securitization) according to law 130/1999 (securitization law)		 Fee-for-service
3 Due diligence	Support in acquisition / disposal processes of loan portfolios to identify  potential risk factors that affect loan collection, valuation and, if requested, dialogue with rating agencies		 Fee-for-service
4 Co investment	 Co-investment activities are functional to obtaining the servicing contract related to the loan portfolio underlying the securitization transaction		Interest income  on securitization notes

Loan lifecycle – Management Workflow 1

• To develop customer segmentation and assign debtor cases to recovery strategies, doBank carries out a broad set of activities, from due diligence of the loan portfolio to the implementation of management actions
• Based on valuation of the portfolio and management strategies to be adopted, the asset manager defines the recovery cash flow expected in terms of time and amount to be recovered (Business Plan of the Portfolio)

Strong capability to on-board loans, clustering as a key factor 1

Strategy definition is pivotal phase for successful management 1

Settlement and closing 1

Improvements in recovery performance 1

doBank as independent servicer has proven track record in improving collections after taking over servicing of NPL portfolios from commercial banks and investors

Actual Net Cash Flow

Reporting 1

• In order to support the asset management team, doBank developed specific reporting for asset managers used in daily activities
• The new reporting is based on the following criteria:
• Synthesis: in just 3 pages the AM can monitors his portfolio having a clear view of collections performance, current legal stages, business plan status and next fixed real estate auctions
• Variance over time: all the tracked variance are compared to previous week and beginning of the year
• Deeper analysis: each single figure included in the reporting can be detailed at asset level

NPL AM Cruscotto Periodo - Anno 2014 Investors Business, GL Vernuccio Claudio , Team Bottero - NPL Roma 3 , AM Pacchiarotti Flavio	1/3 - Performance			RECEIVED A 447 MALMAGNET REP Ad esclusivo uso interno
Teum				doll agglomati a 03/03/14
	In Progress	In Progress	In Progress
	P1 (Gen-Apr)	P2 (Mag-Age)	P3 (Set-Dic)	Totale Anno (Gen-Dic)
Target Originatio	5 974 795	6.256.007	8.202.656	20561210
Ternet	5 974 765	6.256.867	8.282.656
Increased (IT)	2811563	$\theta$	$\alpha$	2813503
% Tanaet	44%	ON.	O%	13%
Одиниза	3,361,212	6,256,162	8.282,656	17,000.235
vs. settmana procedente (incassi)	102.002	$\circ$	$\circ$	102.002
Asset Manager contribution
	Ja Progress	In Progress	In Progress
	P1 (Gen-Apr)	P2 (Mag-Age)	P3 (Set-Dic)	Totale Anno (Gan-Dic)
Contabilizzato (con case) CAS	318.017	٠	$\circ$	316.017
Courtstate	101.031	٥	٥	109.153
Strapputtziale	146,824	t	ö	146,824
Brass Bighthand	$\circ$		ó	$\circ$
Brans Boons	۵	٠	۵	٥
Contabilizzato (privo di Case) da.	$\circ$	$\sigma$	$\circ$	$\circ$
Non contabilizzati (degnaiati) (c)	$\bullet$	$\sigma$	$\circ$	$\circ$
Incassi Totali $(40 - 10)$ by $(2)$	316.017	$\sigma$	٠	316.017
Ni su Incassi total del Team	12%	ON.	ON-	12%
vs. settimana precedente (incassi)	758	$\circ$	٥	750
Asset Manager Bonus	KYA	$\theta$	۰	KV
(0.20%) Incorps	632	$\circ$	۰	632
C. KF1 cosa	$\bullet$	$\theta$	ö	$\alpha$

Page 1: Performance Page 2: Stratifications Page 3: BP & Auctions

				2/3 - Portfolio
		Periodo - Anno 2014									Ad esclusivo uso interno
						Investors Business, GL Vernuccio Claudio , Team Bottero - NPL Roma 3 , AM Pacchiarotti Flavio					dot conformati a 03/03/14
Peritoio
		Mesi dalla oessione					New IN
		olim.	6n.12m	12m 24m	24m	Technic	YT0		P1 (Cen Apr) P2 (Mag Apr)	P3 (Set Die)	YTD % of Total	YID Closed
	٠	$\circ$	2.7	7.5	16	8.	ø		$\circ$	×	ON.
Classroo Full	DHI	ò	۵	422.283	2.333.500	3795172	٠		$\circ$	ï	ON
	NDV	$\alpha$	۵	15.540	238,609	254,148			ö	ï	ON
	×	$\circ$	z.	6.5	$\overline{2}$	$\Omega$	×		ċ	ċ	ON.
Closing Partia	so.	$\circ$	220.754	4400.127	9.000.938	13,417,770	r.	×	c	¢	CN
	SIDV	$\circ$	00.994	11,337	00,445	159,745			ċ	ċ	CN
	٠	4.7	60.7	271.2	22	348			٨	k	m
NPLAM	607	421.723	11.078.934	1001-001-2333	1144,503	199,844,354	431.799	424,225	٨	é	ON
	N D V	141817	BAR KNN	6.268.333	90,632	7.849.4%	\$41,817	\$45,817	۵	ï	ON
	٠	4 2	ME 2	284 .	41	385	٠	٠	c	k	98	$\bullet$
Totalis	ond	421.723	11.300.688	101.114.143	12.884.081	216.020.536	421723	421,722	۰	r	ON
	Mode	101.437	203,5690	673,631	314, 200	1403 (842)	105,431	105,435	c	r	19%
	NRY	141.917	000.649	6706.170	415,685	8,262,338	541,617	141111	c	r	O%
Security
		Stato procedura legale			COL	10%	cos	92%	IDON	100%
		CAL	10%	20%
		Nessuna	Assemblance Legale	Aziena accusta	Reform CTU ( Arrente BK	CBU Det Am Pows RK	Asto	Distribution	Chinaka i Residual	Closing	Totale	Audicial Incles
	٠	3i	$\alpha$	48	12.7	11.7	78.0	G.D	14.7	23.	148	77%
11 Grado	oers	15.302.170	$\mathbf{u}$	4/5.457	5.965.321	4,905,991	22.991.943	8.540.632	15.305.659	12.100.661	05.857.030	69%
	٠	$\mathbf{E}$	$\theta$	e	45	3 2	12.7	9.0	3.0	31	26	77%
$2n$ Grado	cov	450.720	$\alpha$	e	24.267	30.628	4.985,983	1.306,663	5.003.248	AB DSS	13,384,411	85%
	٠	$20 -$	30.	17.2	55.	13.	30 2	75	HO.	11.	212	52%
Unsecured	m	8815235	4.378.765	6.007.675	4.435.855	8.426.938	6,695,704	33.099.217	38,020,275	3.505.435	116,703,095	25%
Totals	٠	39	30	жś	$\mathbf{a}$	$\overline{\mathbf{v}}$	118.2	м.	$\overline{n}$	37	385	65%
	on/	34,580,120	4.178.765	6.483.131	10.415.444	13,780,434	32.042.057	42,896,532	58.376.183	16.174.142	216.020.536	23%
	٠	¢.	1.5	17.5	54.	15.	13.7	g P	82.	zo.	161
of which UK:	cov	14.008.515	$\mathbf{u}$	6.007.679	0.955.364	9.065.073	14.524.133	41,669,470	58.779.305	12.492.374	164,392,814
Leursanne	٠	2.7	f.	75	2.5	$\overline{1}$	ø	ô	62.	15	$22 -$
non dissoriale	OHV	502.239	ö	1,398,865	1006.001	2,443,070	×	$\theta$	08.729.368	88,050	61.449.058
Arrmitatione		n	a	$\overline{2}$	5.	z.	16.0	35	×	$\alpha$	22.
ELONGNON	641	ø	ö	101.055	6.885.038	4,854,096	44-455-500	8 923 849	ö	a	20.049.726
	Imparta	$\alpha$	ö	165291	3 843 656	574,354	8.373.398	4.423.235		$\alpha$	14.259.006
Arringstone	٠	$\overline{2}$	ó	$\mathbb{R}$	$\overline{L}$	$\mathbf{a}$	$3.0^{+1}$	ő.	a	a.	33 1
in chicagalo	680	\$4,334,277	n	4.419.359	2.014.877	5 608 748	3.368.598	32.744.854	n	12.404.319	74,085,030
	HERAKA	843,526	ò	2.238.634	1.762.359	3 679 824	2.382.766	16.216.986	$\theta$	5.124.521	12.219.021
		ON	OK.	-5%	4%	86	os.	-7%	74	$-7%$	-9%
Tel. ys. set. organizate	s. North A	OW	O%	-9%	1%	CG	-1%	$-196$	2%	-1%	D%
Tot vs. Intdo	$\mathbf{X}$	m	D%	ON-	crs.	DA	O%	CN 3	ON.	m.	D%

	Periodo - Anno 2014		3/3 - Performance						Ad esclusivo uso interno
				Investors Business, GL Vernuccio Claudio , Team Bottero - NPL Roma 3 , AM Pacchiarotti Flavio
Husiness Plan										dat aggromat a G3CG14
		Mesi dalla ocstione
		kdes	fm 12m	120-240	24m *	Totale	Tot yx sett procedents	DP Index	RP cco. delinguagev	RP con incassi nell'anno
EP < Y2011	٠	٥	20.	103.1	14.	137.	O%	76	37.7	2P
٤	ctu	ö	4.129.010	49.841.996	2.793.571	58,784,575	C%	S%	24:345.000	1,309,608
BP Y2011 ٤	٠	ö	R 2	10 o	$2\overline{z}$	21.7	2%	4%	A.D	$20^{\circ}$
	GRS	ö	296,656	8,549,426	30265	9.576.347	ON.	2%	605 651	3-802-943
RP Y2012 ٤	٠ AR-	ö	6.	40.	$\mathbf{A}$	61.3	0%	11%	W.P	12
	٠	ö ö	1,791,983	21211.553	R.JON 988	31.430.525	0% gs.	12%	2979.847 10	262.051 1.0
٤ EP 12013	oth	۵	8. 1.205.817	20 37,683,697	$\mathbf{1}$ 82732	29.2 39.052.045	g%	8% 19%	1260.241	88.055
	٠	45	65	44.7	1.5	SS.	ow.	O%	۰	٥
DP 12014	one	421.723	1.417.734	63,526,477	133,796	65.400.730	O%	O%	۰	$\Omega$
	٠	ô	Δ.	59	15	AS.	O%	O%	۰	٥
I None	GP	ö	1,957,879	10:501.804	1,417,629	13,887,312	O%	os.	$\circ$	$\overline{a}$
	٠	4.	56.	28.4.1	41.	385.2	-0%	24 04	60.0	6.P
Totale	opy	421.723	11.399.688	991.354.543	12.884.981	216.020.536	-0%	30%	29.270.819	5.121.958
		Garanta
VTD		1º quido	Altro quado	Non Garantito	2ª srado	Totale	Tot, vs. sett. procedente	Auction Facilitation	% Auction Facilitation	Intertio in diardo
	٠	aca.	90.0	300 /	119,2	ars.	5%	$\alpha$	C%	270
	Cost Arts	30.031.823	12:208.044	30:282.728	15 (CO) 706	89 139 102	1%	7.091.109	$0\%$	39.962.929
Deserta No esito	٠	3i	$\alpha$	7,0	$25 -$	$\mathbf{r}$	-29%		17%	$\ddot{\phantom{a}}$
	Racinalis	120,000	$\alpha$	Silvi croz	296,555	1.010.042	20195	967414	17%	$\alpha$
Postcassis	$\bullet$	9 o	ö	10	ö	n	ON.	١	10%	$\overline{1}$
	Roce artist $\overline{\phantom{a}}$	1.084.998	$\alpha$	$\mathbf{r}$	۰	1.084.958	OK.	178,000	10%	178,000
		43.	$H_{\nu}$	463	s.	108.2	4%	50	9%	28. ـ
Cresbutos	Committee ٠	3.615.970	3,078,455 $\alpha$	5.148.283 $\mathbf{r}$	2343.100 ۰	14.084.907	2% $-100%$	1.052.475 ۰	7% ON	2,492,057
Sold Reoco	Back and	Đ 125,000	$\Omega$	$\mathbf{r}$	$\circ$	$\mathbf{1}$ 125,000	$-100%$	$\circ$	ON	o $\bullet$
	٠	17.1	۰	10 1	٥	$33 -$	120%	90	30%	$25^{\circ}$
	Cose arts	1311900	$\theta$	4,005,910	ó	8.157.010	$-100%$	1.022.014	17%
	$\mathbf{r}$	75	8.0	8.0	ö	$\sigma$	3%	é	35%	$\alpha$
	Richards ٠	398 823	231,650	50.674	ö	683.347	4%	384 120	58%
		ある 349,934	$\circ$ ۰	75 381,090	٥ ۰	$12 -$ 731,014	6% -21%	ĸ 417,000	42% 57%	$\circ$
Macro Acritic Maggare	Cose anto ٠	34	$\circ$	ø	۰	3 o	CW	и	22%	$\circ$
Gugna	Cost and	762,059	n	$\mathbf{r}$	ö	762.059	OY.	600,000	79%

2 Master Servicing and structuring of securitizations

• Master servicer performs different activities in a securitization, both regulated and ancillary
• doBank provides services to the investors from the structuring of the securitization to the SPV management

Loan Administration	Accounting and Cash Management	Portfolio and/or Investor Reporting	Servicer Oversight
Automated analysis,  such as performance metrics or dashboards Timely exception  reporting regime to identify errors, omissions and actions outside of delegation authorities	Cash collection and  payments processing Control of the custodial  accounts, bank reconciliations Escrow accounts or  reserve accounts Control over adjustments  to mortgage loan	Accurate and timely  reporting to trustees, investors and from special to master servicer Remitting funds to clients 	Review of info from  Special Servicer(s) Authorization  procedures Ongoing review of  Special Servicers capabilities and performance

Securitizations

• Long experience in origination and underwriting securitizations of performing and non performing portfolios
• Since 2000, Italfondiario has structured more than 50 securitizations to date (#1 ranked in Italy)
• The Group can support the originator in all phases of the process

Due Diligence capability 3

• Due diligence scope is to define the valuation of a portfolio through the analysis of available documentation
• Based on valuation and management strategies applied, the asset manager determines the recovery cash flow expectations in terms of time and volumes (Business Plan)
• doBank provides its assistance to:
• Client with servicing contracts in this case doBank organizes the dataroom and Q&A and assists client in sale
• Investors / banks for buy side in this case doBank gives support in credit valuation
• doBank has proven the capability to manage due diligences with a pronounced number of loans and great complexity as demonstrated in the MPS and FINO due diligence (more than €40bn analysed)

Co-Investment 4

• Co-investments instrumental to win new servicing mandates and subject to the Group being servicer of overall NPLs portfolio and leading underwriting due diligence
• Co-investment strategy focuses on investing across the capital structure, however investment only in mezzanine and junior tranches can be considered under certain conditions
• Minority co-investments alongside main investors in NPLs securitization structures

doBank ancillary services

doBank ancillary services: focus on doData offering

• Extensive expertise in managing large sets of complex data enables the creation of data quality products
• doData offers a complete solution to improve NPL specific data sets at banks, with a focus on the real estate component
• As a result, banks benefit from improved ability to collect and better data governance
• First contract signed with Unicredit in 1Q2018 and a second in the pipeline for 2018

Features of the UTP market and doBank's core capabilities

GBV already under management	€1.8bn from UniCredit UTP (residential  mortgage)	Top class team	 Dedicated team already operative both in front and back office activities
	UTP Market Features		doBank track record and capabilities
Corporate exposure	 >70% of UTP portfolio	70% of its  Core asset  successful	NPL portfolio is corporate class of the Group, long-standing track record of management
Highly Secured	>75% of UTP portfolio 	 80% of NPL  Deep estate assets	portfolio either secured or soft-secured understanding and valuation capabilities of Italian real
Mid-market size of position	 ~50% of positions range between €1m and €15m	Strong  capability to	preparation for the mid-market size thanks to the great manage large number of positions
Client concentration	 53% of total GBV with top three Italian banks	 Ability to	leverage on current client relationships
doBank Expertise and Interest Alignment	 Corporates: benefits from management expertise and professional new finance  Client banks: deconsolidation of loans keeping strong exposure to upside doBank fee structure: different fee structure from NPL  servicing with strong alignment of parties both in credit		Bring borrower doBank back to Objective performing
	management and new finance

Rationale of doBank proposal for UTP

Objective

• Enhance credit management efficiency through a best in class team, with a thorough understanding of main industries and adequate incentive schemes
• Focus actions on SMEs with business rationales, jeopardized by financial burdens and impacted by banking de-risking mood
• Capital light model to fulfill new finance needs of borrowers: partnerships with external Investors, coupling their liquidity and risk appetite, with banking capabilities of doBank
• Deal structures allowing Banks to derecognize NPLs without crystalizing losses, thus keeping a strong exposure to value creation
• Banking and IT solutions allowing a comprehensive solution to any banking instrument

Success Key

• The success keys of this Servicing structure are:
• Speeding up of financial restructuring process
• Ensure the right time, amount and instrument for the New Finance
• Facilitate all suitable changes of governance and management in borrowers

Outcome

To improve corporate turnaround leading to an increase in Banks future recovery performances, with a strong alignment of economic interests among different parties involved

doBank UTP operating model

• doBank is structured in order to carry out two different, but interconnected core activities: Servicing and Financing activities
• A Back-office Team will support both the Restructuring and Financing Team

doBank role in the UTP management process

• doBank, already the largest independent servicer of UTP in Italy, will offer restructuring expertise and its active portfolio management process, for an attractive fee structure
• When appropriate, doBank will be able to offer co-financing along other investors, supporting the Business Plan of the borrower

Business model for the new Bank

• Other than UTP management, follow up of existing banking activities along same clear principles:
• Sustain the existing fee business of doBank, providing a further competitive advantage
• Provided that there is a privileged insight and understanding of creditworthiness and great experience in NPLs/UTPs

Key financials – Execution of IPO plan

• A resilient business, able to grow revenues and expand margins
• Internal levers enabling quality top-line growth and progressively higher profitability and cash flows

Growth drivers

• Add GBV by winning mandates
• Protect premium pricing
• Improve collection efficiency
• Add more revenues per unit of GBV via ancillaries

Growth drivers

• Deployment of operating leverage
• Process-driven efficiency improvement
• Strict control of SG&A and Real Estate costs

Growth drivers

• Structurally low-capex needs
• High operational cash flow conversion

GBV dynamics

• GBV trend is a pivotal driver for loan servicers, impacted by several factors
• A loan servicer is "good for all seasons"
• In a positive macro cycle, the GBV will reduce faster owing to more collections and lower new flows
• On the opposite, inflows will increase in a negative macro cycle

GBV Evolution and key assumptions

Conservative planning assumptions underlying key variables of GBV evolution in 2018-2020

Portfolio features support growing profitability with low risk

Key features of doBank portfolio

Implications for doBank

Lower risk profile vs debt purchasers:

• 1. Servicing third-party portfolios via long-term contracts ensures low volatility and high predictability of cash flows
• 1. Lower risks involved: no balance sheet risk, no pricing risk, no sensitivity to interest rates, low execution risk
• 1. Balanced client mix and independence reduce client risk
• 4. Co-investment captures upside on value of portfolio managed on top of fee structure

Higher profitability of the servicing business:

• 1. Value-added services, with higher barriers to entry represented by data, protecting pricing
• 1. Complex asset management activity requiring specialized skills
• 1. Possibility to add more revenues per unit of GBV via legal, real estate and other ancillary services
• 1. Ability to scale up due to low labor intensity of operations and leveraging on technology

Portfolio mix drives strong cash flow generation and low execution risk

1. 2016: UniCredit 47%, Fortress 33%, Intesa Sanpaolo 11% - 2017: Fortress 32%, Unicredit 20%, Fino 20%

Collection rate dynamics

• Large, corporate, secured assets tend to have long recovery curves in need of proactive asset management
• Collection amounts linked to collection costs, ensuring high profitability at each stage of the process
• doBank's improvement in collection rates based on internal levers such as new flows vintage and collections efficiency

	New Flows	Improved average portfolio vintage drives collection rate growth 
Collection rate drivers	Collection efficiency	 Collect more on the same unit of GBV, collect at lower cost due to technology and process improvements
	Macro factors	 External factors not included in doBank's planning assumptions: improving macro that positively affects collections via asset prices and higher borrowers wealth

Ability to collect profitably throughout the loan lifetime

Tiered fee structure aligns interests of clients and doBank

• Performance-based and recurring revenues provide downside protection and upside potential to doBank
• Client and portfolio mix are key to protect pricing power and stay focused on most profitable sub-segments

Revenue drivers of new business

• doBank is focused on developing growth in contiguous markets both by product and by country
• Current expertise in Italian NPL and UTP is fundamental in the development of the new activities

Building from core competences to selectively add new revenue streams

Group Revenue outlook in 2018-2020

Consolidated Revenue Targets

• Gross Revenues >€230m driven by
• Significant new GBV under management (+€3-5bn in 2Q-4Q18, +€15-17bn in 2018FY)
• Improved collection efficiency
• Ancillary revenues expansion
• €2bn out of Intesa managed portfolio potentially included in Intrum perimeter (indemnity protection or continue servicing)

2018E 2017A-2020E

• Gross Revenues 8%-9% CAGR in 2017A-2020E
• New GBV wins of €15bn over the plan post 1Q18 (Italy bad loans)
• Ramp up of new growth initiatives such as UTP and Greece
• Higher collections efficiency
• Ancillary revenues supporting a one-stop-shop offer

M&A upside not included

2017A 2018E 2020E Specialized banking upside not included (costs already included)

Strict cost control to support profitability growth

Growing revenues while keeping cost base under control Reallocation of resources to highest growth potential business

Deployment of New Group structure: financial impacts

Lever	Description of initiative	Nature of impact
Operating cost	Reductions of SG&A and HR costs 	Yearly recurring
savings	 Upfront redundancies costs related to ca. 7% FTE reduction	One-Off
Tax efficiencies	Cost of DTA reassessment in   More efficient applicable tax regime, year of status change of decreasing tax rate from 33% c.€11m gross (applied to the Bank) to 28% (applied to the Servicer)	One-off non cash
and compensation	 Payback period to recover the initial  Future tax efficiencies DTA re-assessment: 3 – 4 years	Yearly recurring Cash from FY 2020
ICT	 Capex for project setup in 2018 The setup of the new Bank will  require dedicated investments (i.e	One-off
investments	core banking, marketing, reporting and monitoring tools) IT running costs 	Yearly recurring
Project costs	 Consulting costs arising for setting up of new Bank and Group re organization in 2018  Start-up cost for UTP, Greek and new Bank of c.€3m	One-off
	Certain one-off costs in 2018 and potentially 2019 to re-organize Group Structure

with future ongoing savings

M&A and capital deployment guidelines

• New organizational structure provides doBank with significant firepower for M&A
• Use leverage up to ~3x net debt/EBITDA
• Priority in use of capital is deployment to capture new sources of growth in same/contiguous markets
• Alternative use of excess cash to progressively increase shareholder remuneration
• Stringent screening criteria with a selective approach to accretive opportunities

Growth via M&A not included in 2018-2020 business plan assumptions and targets

Group 2018-2020E guidance

	 Commitment to high levels of operating cash flow conversion (>90% in 19-20E) despite higher Capex program of €14m in 2018 reducing to €5m in 2020
Cash generation and M&A	 Invest to be able to "do more with less"  Industry-leading dividend payout at >65% of consolidated ordinary net income  New organizational structure enables use of balance sheet strength for M&A, not included in
	current planning assumptions

Significant medium term growth in revenues with expanding margins and more than proportional impact on ordinary EPS

Key strategic pillars of doBank business plan

Condensed consolidated income statement

(€/000)

Condensed consolidated income statement		Year		Change		First Quarter	Change
	2017	2016 PF	Amount	%	2018	2017	Amount
Serv icing rev enues	196,554	191,754	4,800	3%	41,947	41,721	226
o/w Banks	159,763	169,305	(9,542)	(6)%	27,053	38,454	(11,401)
o/w Investors	36,791	22,449	14,342	64%	14,894	3,267	11,627
Co-inv estment rev enues	665	25	640	n.s.	236	-	236
Ancillary and other rev enues	15,796	14,402	1,394	10%	4,069	3,486	583
Gross Revenues	213,015	206,181	6,834	3%	46,252	45,207	1,045
Outsourcing fees	(18,087)	(17,767)	(320)	2%	(3,684)	(4,191)	507
Net revenues	194,928	188,414	6,514	3%	42,568	41,016	1,552
Staff expenses	(83,391)	(81,570)	(1,821)	2%	(22,496)	(19,436)	(3,060)
Administrativ e expenses	(41,435)	(42,537)	1,102	(3)%	(9,071)	(11,719)	2,648
o/w IT	(17,784)	(14,253)	(3,531)	25%	(3,343)	(6,905)	3,562
o/w Real Estate	(8,086)	(9,114)	1,028	(11)%	(1,925)	(1,967)	42
o/w SG&A	(15,565)	(19,170)	3,605	(19)%	(3,803)	(2,847)	(956)
Operating expenses	(124,826)	(124,107)	(719)	1%	(31,567)	(31,155)	(412)
EBITDA	70,102	64,307	5,795	9%	11,001	9,861	1,140
EBITDA Margin	33%	31%	2%	6%	24%	22%	2%
Impairment/Write-backs on PP&E and intangible assets	(2,284)	(1,720)	(564)	33%	(559)	(506)	(53)
Net Prov isions for risks and charges	(4,041)	1,538	(5,579)	n.s.	(211)	(135)	(76)
Net Write-downs of loans	1,776	114	1,662	n.s.	8	70	(62)
Net income (losses) from inv estments	2,765	179	2,586	n.s.	340	-	340
EBIT	68,318	64,418	3,900	6%	10,579	9,290	1,289
Net financial interest and commission	(184)	(196)	12	(6)%	(46)	(46)	-
EBT	68,134	64,222	3,912	6%	10,533	9,244	1,289
Income tax for the period	(22,750)	(23,550)	800	(3)%	(3,960)	(3,572)	(388)
Profit (loss) from group of assets sold and held for sale net of tax	(390)	(1,435)	1,045	(73)%	-	(341)	341
Net Profit (Loss) for the period	44,994	39,237	5,757	15%	6,573	5,331	1,242
Minorities	-	-	-	n.s.	-	-	-
Net Profit (Loss) attributable to the Group before PPA	44,994	39,237	5,757	15%	6,573	5,331	1,242
Economic effects of "Purchase Price Allocation"	-	1,157	(1,157)	(100)%	-	-	-
Goodwill impairment	-	-	-	n.s.	-	-	-
Net Profit (Loss) attributable to the Group	44,994	40,394	4,600	11%	6,573	5,331	1,242
Earnings per share	0.58	0.52	0.06	11%	0.08	0.07	0.02

Consolidated balance sheet

(€/000)

Main consolidated balance sheet items	3/31/2018	12/31/2017
Financial assets	83,965	76,303
fair profit at v alue through or loss	22,853	22,998
at fair v alue through comprehensiv e income	1,002	1,003
at amortised cost - loans and receiv ables with banks	55,645	49,449
at amortised cost - loans and receiv ables with customers	4,465	2,853
Tax assets	92,791	94,187
Other assets	124,631	127,010
Total assets	301,387	297,500
Financial liabilities	8,531	12,106
at amortised cost - due to customers	8,531	12,106
prov ision for risks E.T.B. and and charges	38,221	36,939
Other liabilities	70,740	41,758
Shareholders' equity	183,895	206,697
Total liabilities and shareholders' equity	301,387	297,500

Consolidated cash flow

(€/000)

Cash Flow	31/03/2018	31/03/2017
EBITDA	11,001	9,861
Net Capex	(439)	(722)
EBITDA-Capex	10,562	9,139
as % of EBITDA	96%	93%
Adjustment for accrual on share-based incentiv e system payments	1,607	-
in Changes NWC	(4,162)	(13,786)
Changes in other assets/liabilities	1,842	3,466
Operating Cash Flow	9,849	(1,181)
Financial interests paid/collected	(46)	(46)
Free Cash Flow	9,803	(1,227)
(Inv estments)/div in financial estments assets	(73)	(751)
Net Cash Flow of the period	9,730	(1,978)
financial Position - Beginning of period Net	38,605	29,459
Net financial Position - End of period	48,335	27,481
Change in Net Financial Position	9,730	(1,978)

Key Performance Indicators

(€/000)

performance indicators Key	3/31/2018	3/31/2017	12/31/2017	12/31/2016 PF
Gross Book Value (Eop) - in millions of Euro -	87,523	82,496	76,703	80,901
Collections for the period - in millions of Euro -	374	394	1,836	1,694
Collections for (LTM) - in millions of the Last Twelv e Months Euro -	1,817	1,899	1,836	1,694
Collections/GBV (EoP) LTM	2.1%	2.3%	2.4%	2.1%
Collections Stock/GBV Stock (EoP) LTM	2.4%	2.4%	2.4%	2.1%
Staff FTE/Total FTE	37%	33%	37%	34%
LTM Collections/Serv icing FTE	2,523	2,414	2,510	2,166
Cost/Income ratio	74%	76%	64%	66%
EBITDA	11,001	9,861	70,102	64,307
EBT	10,533	9,244	68,134	64,222
Margin EBITDA	24%	22%	33%	31%
Margin EBT	23%	20%	32%	31%
ROE	3%	3%	22%	22%
EBITDA – Capex	10,562	9,139	64,436	62,645
Net Working Capital	82,427	93,106	78,265	79,320
Financial Position of cash/(debt) Net	48,335	27,481	38,605	29,459

Disclaimer

This presentation contains certain forward-looking statements that reflect the doBank S.p.A.'s ("doBank" and/or the "Company") management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries

These forward-looking statements are based on doBank's current expectations and projections about future events. Because these forward looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of doBank to control or estimate precisely, including changes in the regulatory environment, future market developments, fluctuations in the price and other risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation

doBank does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. The information contained in this presentation does not purport to be comprehensive and has not been independently verified by any independent third party

This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not contain an offer to sell or a solicitation of any offer to buy any securities issued by doBank

This Presentation is confidential and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to law, rule or regulation

Investor relation contacts: Investor relations contacts

Fabio Ruffini Head of Investor Relations

Tel.: +39 06 – 4797 9154 Mail: investorrelations@dobank.com