Dovalue — Investor Presentation 2019

Nov 8, 2019

doValue

9M 2019 Results and Business Plan Update November 8, 2019

2019 marked by the execution of several complex projects and…

2019 Projects execution	Long-term benefits to doValue
Group re-organization completed  Banking licence withdrawal with corporate name change from doBank to doValue (June)  Fully authorized by the Bank of Italy as a hybrid financial intermediary, able to grant financing and offer payment services to UTP clients (October)	Ability to deploy balance sheet for accretive M&A Lower regulatory costs Alignment of corporate perception to servicing business
Altamira Asset Management integration  Closing (June)  Set-up of new Group organization and finalization of coordinated workstreams (October)	Transformed corporate profile  doValue becomes a larger, less cyclical, more diversified servicing company
Project RESI  Structuring for Unicredit of the largest mortgage securitization in Europe (>€6bn, pj. Prisma)	Confirmed leadership in servicing market  driving product innovation and client reputation > €22bn of GACS executed by YE 2019, #1 in Italy
UTP Platform In exclusive negotiation for a >€500m GBV portfolio   Exclusive agreement with most advanced RE UTP servicer in Italy, AREC (project Mosaico)	Progress on UTP targets  Multi-originator platforms gaining traction  Market started witnessing UTP portfolio sales

…by the achievement of more than €11 billion of new mandates

Integrated Organizational Platform Selected KPIs – Alpha Bank Contract Servicing Platform Real Estate services NPE servicing Support Functions A nalytics Compliance, Legal, Internal controls HR, Finance doValue together with carvedout Alpha Cyprus employees to focus on NPE servicing Altamira Cyprus to provide Real Estate expertise Altamira Cyprus to provide analytics and support functions, driving operational leverage Serviced stock of €4.3bn brings total GBV in Cyprus to >€11bn Contract awarded after long selection process started in Q4 2018 Exclusivity on all future NPL and REO flows 90 days past due of Alpha Bank in Cyprus Exclusivity period of 4 years automatically extendable for an additional 3 years

• Carve-out of Alpha Bank local servicing platform and ca. 185 employees
• Retail and Corporate positions for more than 13k loans
• Mix of liquidation and restructuring
• Attractive profitability levels
• Requires small upfront price and limited capex investment in year 1 of operations

9M 2019 Summary financial highlights

		9M181	9M19	∆ (%)
e s u r n e e v v ri e d R	GBV EoP	€83.5bn	€132.4bn	+59%	 GBV at €140bn including recent mandates, up vs 9M 2018 "at constant perimeter"2 at €135.9bn Collections Italy at €1.2bn, discounting a light 
	Gross collections	€1.3bn	€3.9bn	n.m.	seasonality (collection rate Italy stable at 2.5%)  Structurally higher collection rates in markets ex Italy, due to shorter court timing
	Gross revenues	€161.9m	€233.4m	+44%	All regions contributing to "constant perimeter"2  revenues growth at +5%
L e & r P u e ct pl u str m Si	Operating costs ex NRIs3	€89.7m	€119.2m	+33%	"C onstant perimeter2 EBITDA ex NRI growth at 
	EBITDA ex NRI3	€56.2m	€90.6m	+61%	+13%  Continued expansion of profitability with positive contribution of Spain, Portugal and C yprus
	EBITDA ex NRI3 margin	35%	39%	+4.1 p.p.	€11.9m NRI3 recorded in the period   Reported EBITDA at €78.8m
	Net income ex NRI3	€34.5m	€44.7m	+30%	 Higher tax charges due to a DTA reassessment cost (one off-non cash) of €10.8m (triggered by de-banking process)
n o h ti a s r a e C n e g	Net Financial Position	(€67.9m)	€257.5m	n.m.	Significant decrease in leverage over Q3 2019,  from 1.8x to 1.5x Net Debt/EBITDA, supportive of
	Net Debt/ EBITDA	n.m.	1.5x	n.m.	the expected trend of quick deleveraging profile

N otes: 1: Restatedfollowing the application of I FRS 16;

2: T o improve c omparability with9M 2 019 results at c onstant perimeter, 2 018results were c ombined with Altamira A.M. Q3 2018 results; 3: E xcluding N on Recurring I tems (costs linked to G roup reorganization and the acquisition of A ltamira A.M.).

Evolution of assets under management and collections

• Growth in GBV as a result of new GBV wins and support from flow agreements
• Group collection performance driven by new markets (Spain, Portugal, Cyprus) with structurally lower court timing

N otes: 1: Pro-forma includingthe acquisition of A ltamira Asset M anagement

2: Stock GBV excludes new s ervicing mandates not yetfully reflected in collections of the period

Revenue breakdown: resilient fees and improving diversification

9M 2019 Cash flow trend

• Very strong free cash flow generation at €78m in 9M19, supported by a positive NWC move (decrease receivables)
• Financial leverage measured in terms of Net Debt/EBITDA down from 1.8x to 1.5x during 3Q19
• Structurally low capex needs and limited cash taxes
• Closing of Altamira acquisition in 2Q19 with related cash out and dividend payment in May 2019

	2017A	2018A	2019 target	Key considerations
Gross Revenues (€m)	214	233	ca. 380 (ca.500 PF1)	Lower market growth in Italy compensated by other markets
EBITDA ex NRI2 (€m)	70	84	ca. 140 (ca. 185 PF1)	Industry leading profitability
Net Income ex NRI2 (€m)	45	53	ca. 70 (ca. 65 PF1)	Supported by D&A profile vs past at Altamira
DPS (€/share)	0.394	0.460	0.623	>30% yoy dividend growth
Net Debt / EBITDA	(0.6)x	(0.8)x	ca. 1.5x	Confirmed max 3x leverage target

2019 representing a solid base to the 2019-2022 business plan

N otes: 1: Pro-forma including the acquisition of Altamira Asset M anagement since January 1 st 2 019;

2: E xcluding N on Recurring I tems (costs linked to G roup reorganization andthe acquisition of A ltamira A.M.)

3: doValue management expectation

doValue transformed profile

Altamira integration reshapes doValue fundamentals

1 Wide exposure to markets and product cycles

Diversified toolbox to grow earnings across macro/product cycles

N otes: 1: Bank NPEs tock as at March 2019. Source: EBA risk dashboard; 2: Deloitte "Deleveraging E urope", October 2019

Italy: UTP, Real Estate, cost efficiency and consolidation

• Primary NPL market: banks move from 8% NPL ratio to 5% EBA (>€50bn transactions)
• UTP market: banks expected to increase outsourcing and disposals in 2020, first signs visible in 2019
• Flow agreements: supporting GBV trend
• Secondary market: €180bn primary transactions in 2015-2019 driving secondary market growth from 2020

• Growth in repossession activity incentivized by regulatory/tax changes
• doValue competitive advantage due to size of secured GBV, analytics and repossession expertise transfer from Spanish operations
• Opportunities for servicers to tap into the wider Real Estate Asset Management industry

Efficiency and Sector Consolidation

1

• NPE flows trending towards a structural €15/20bn p.a. require servicers to look at cost to stay competitive and continue to grow earnings before next cycle
• M&A: inevitable consolidation to support industry pricing. Positive for doValue regardless of its role in the process

N otes: 1: Source: PWC Update on the I talian servicing market, June 2019. 2: Source: BCG estimate

Spain & Portugal: secondary market and real estate

• Primary market: low volume expected in Spain, more opportunities in Portugal, with banks at 10% NPL ratio
• Secondary market: active and established secondary market supported by >€160bn primary transactions in 2014-2019
• Flow agreement sustaining GBV trend, base fees providing downside protection

and Asset Management

• Steady growth in Spanish real estate market, with pricing still below pre-crisis level
• Increasing demand for rental properties driven by demographic changes, generating significant interest from investors
• Prime urban areas and coastal regions generate the most interest (Madrid and Barcelona make up >25% of housing transactions and 61% of ongoing developments)

Efficiency and Sector Consolidation

1

• NPE flows trending towards a structural €15/20bn p.a. require servicers to look at cost to stay competitive and continue to grow earnings before next cycle
• M&A: consolidation expected to continue as some PE funds near the end of their investment period. Integrated NPL/REO servicers to continue lead the market as client needs become more sophisticated and SAREB decided to shift a significant portion of NPL to REO management

N otes: 1: Source: BCG estimate

Greece & Cyprus: large primary markets and M&A optionality

Cyprus Servicing

• Systemic banks plan to reduce NPEs by ca. €47bn within 2021
• Short-term pipeline in excess of €12bn, made up of more than 10 transactions
• Piraeus and Eurobank platform disposals only entail the sale of €9bn out of total €50bn managed
• Asset Protection Scheme, similar to Italian GACS, expected to support securitizations
• Rising number of e-auctions resulted in banks REO stock growth and need for specialized real estate servicing to manage REO after repossess

• Short-term pipeline of €5.6bn in 4 transactions likely to close in the next 6-9 months
• Opportunity for doValue to grow beyond the current 55% market share
• Flow agreement supporting GBV
• Potential for further cost efficiencies across the two doValue platforms

1

N otes: 1: Source: BCG estimate

Unmatched ability to compete and win new clients year after year

Long term contracts and recurring revenue streams 4

	2019	2020	2021	2022	2023	2024	2025	2026	2027	Run off	2019 GBV	Key considerations
												 Weight on 2022 EBITDA ca. 6%
											€24bn	Recently renewed Haya contract to  2022 represents a pricing benchmark
											€6bn	 NPLs and REOs beginning 2017
												 NPLs and UTPs
					FORWARD FLOW AGREEMENT					€12bn	Stock until run-off 
												 NPLs and REOs
					FORWARD FLOW AGREEMENT						€16bn	 Stock agreement until 2026 + 4yrs
											€4bn1	 7y NPLs and REOs
Cyprus			FORWARD FLOW AGREEMENT									 Stock until run-off
										NPLs and REOs 
											€24bn	 Major NPL investor
GACS projects											€18bn2	 NPLs - entire life of the SPV
Other banks and											€35bn	 NPLs - entire life of the SPV
investors

2020-2022 Business Plan: focus on Altamira

Proven capability to win new clients and expand operations in new markets

NPL SERVICES €35bn
DEBT MANAGEMENT	RE SALES AND MARKETING	LAND DEVELOPMENT	ASSET MANAGEMENT	ADVISORY
Integrated debt  management service  Individuals, corporates and SMEs. Unsecured and secured Primary and  special servicing	 Sales of any Real Estate asset class  Combination of internal specialists with a large broker network  State-of-the-art digital platform	Largest developer  in Spain, 186 developments ongoing today  Value creation versus asset liquidation Internal capabilities  to feasibility analysis	Property  Management of more than 100k assets  More than 7k assets rented  Multi-client portfolio management capabilities	Strong valuation  and portfolio management capabilities for investors More than 16  large NPL/REO portfolios analyzed per year
Similar to doValue today		doValue in 2020-2022		Similar to doValue today

Altamira experience enables doValue to step into a broader services market

Real Estate services key metrics

Focus on Altamira real estate capabilities

Altamira leads the most advanced Real Estate market in Southern Europe

Robust deployment model

• Utilize a proprietary Real Estate deployment methodology based on a corporate real estate operating model that is customized to country specificities as required
• Organization led by an in-house Transformation team with proven experience in transferring operating models / systems to other geographies
• Successfully executed enhancements of Real Estate operating models in Portugal and Cyprus

2020-2022 Business Plan Targets

Summary 2022 financial targets

	Financial targets	Key considerations
Gross Revenues & 2 EBITDA ex NRI	 +1%/+3% Revenue growth CAGR in 2019PF1-2022 and similarly foreseen for the following period  +3%/+5% EBITDA excluding NRI2 CAGR in 2019PF -2022 EBITDA margin >40% by 2022 	Mix of geographies and products able to  drive EBITDA growth in the medium term Significant efficiency plan and actions to  reduce the fixed cost base while enhancing the variable component
2 EPS ex NRI	 15% CAGR in 2019PF-2022	 EPS growth to stay structurally above EBITDA growth as curving D&A and interest expenses reduce Tax rate at 30% from 2020 onwards,  including DTA charge of c .€2m
Dividend Policy	 Dividend payments (DPS) above current market expectations  Payout above current policy of 65% of Net Income ex NRI	 Reinforced commitment to remunerate investors at industry-leading levels
Leverage	 Quick organic deleverage with Net Debt/EBITDA below 1x by 2021  Use balance sheet strength for accretive M&A but peak leverage to stay <3x Net Debt/EBITDA	 Confirmed strong cash conversion and cautious approach to M&A  M&A opportunity concentrated in 2020, higher dividends or share buyback thereafter

doValue growth pace to continue in the medium-term across product and market cycles

N otes: 1: Pro-forma including the acquisition of Altamira Asset M anagement since January 1 st 2 019; 2: E xcluding N on Recurring I tems;

3: doValue management expectation

Main variables underpinning revenue targets in 2020-2022

Continue strict cost control to support profitability growth

What has been done in 2018-2019		Operating costs breakdown	New operating objectives
Centralized purchasing for Italy  and Greece	EBITDA ~37% margin	>40%	 Centralized purchasing where achievable within the Group
 New territorial footprint in Italy (closed 6 local offices)  Smart working project rolled-out to >60 employees	Cost base €m 19%	(3)% CAGR in 2019-2022 15%	 Continue local footprint rationalization Smart working to be extended to  larger portion of employees  Complete migration of servicing
 Credit servicing platform migration completed for relevant portfolios  Rationalization of IT	3% 9%	2% 6%	platforms in Italy  Exploit outsourcing opportunities (especially IT)
 Turnaround program achieved: 7% FTE reduction target in Italy. Full positive impact on cost in 2020	69%	77%	 Rationalize IT infrastructure across countries  Continue turnaround program in Italy and Spain and increase HR efficiency of Portugal and Cyprus
	2019 HR IT	2022 Real Estate SG&A

Commitment to continue optimizing every cost line to grow EBITDA margin

Focus on synergy potential

• Already completed detailed synergy assessment and implementation plan strategy with cautious approach to sizing of financial impacts
• From January 2020, new organizational structure in place to fully empower regional leadership and set -up of a European-wide client facing team

Synergy area Main projects		Expected impact
Cost Revenues	Shared infrastructure and best practices Shared ICT infrastructure   Centralized procurement  More use of Robotic Process Automation Transfer Altamira Real Estate model to Italy and Greece  Increased use of repossession as a recovery tool for secured NPEs Deploy Altamira's "Active Real Estate"  model to broaden revenue streams	 Reduced number of ICT systems, group purchasing  €2-4m EBITDA in 2022 Improved timing and amount  of recoveries €8-10m EBITDA in 2022 
Additional opportunities	 Client cross-selling Data quality/governance cross-selling   NPE marketplace development Transfer of securitization expertise from  Italy to other markets	 Additional cross-selling and collection efficiency opportunities Not included in business plan  synergy target

Despite limited overlap in cost base, integration with Altamira expected to provide >€10m synergies at EBITDA level with limited realization costs

M&A and capital deployment guidelines

N otes: 1: Illustrative calculationassuming no additional EBITDA from M&A target

1 doValue today is the Southern European leader in services for NPE and Real Estate investors

2 Opportunities to grow revenues and improve efficiency across markets and products translate into continued earnings growth in the medium term

3 Wider business services sector to provide moderate but steady growth in the long-term. Servicers expected to diversify in to Real Estate and Business services and to consolidate

doValue advantages in the current market scenario: scale, expertise, track record and financial firepower to improve shareholder returns

4

9M 2019 by market – benefits of diversification already visible

• Exposure to different macro and product cycles yields top-line benefits
• Accretive profitability in markets ex Italy, due to a mix of factors:
  • Italy weighed down by seasonality in 9M 2019
  • More mature markets pushing on added-value services in the Real Estate value chain
  • Early-stage markets benefit from structurally higher fees and lower competitive pressure

GBV in 9M 2019: one of the most diversified portfolios in the industry

35

Integrated Group structure and sharing of know-how

European servicing market: multiple sources of opportunity

Current market trends 1 Non Performing Loans: Primary deals stabilizing post 2018 peak, bit a sizeable flow of business continues. Past primary activity to translate in secondary market pick-up from 2020 onwards 2 Unlikely to Pay Loans: market activity starting with some delay in 2019, providing growth opportunities for servicers especially in Italy and Greece 3 Real Estate: REO activity continues in more developed markets (Spain/Portugal) and growing significantly in Italy, Greece and Cyprus. Servicers stepping into broader Real Estate asset management 4 Sector consolidation/efficiency: volume stabilization pushing servicers to improve cost base. Italian and Spanish market likely to see a consolidation wave. More banking platform disposals in Greece

Condensed consolidated income statement 9M19

(€/000)

Condensed consolidated income statement	First nine months	First nine months	Change
	2019	2018 RESTATED ⁽¹⁾	Amount	%
Servicing revenues	206,586	144,172	62,414	43%
o/w NPL	173,654	144,172	29,482	20%
o/w REO	32,932	-	32,932	n.s.
UTP Servicing
Co-investment revenues	477	714	(237)	(33)%
Ancillary and other revenues	26,289	17,037	9,252	54%
Gross Revenues	233,352	161,923		71,429 44%
NPL Outsourcing fees	(12,396)	(12,445)	49	(0)%
REO Outsourcing fees	(5,143)	-	(5,143)	n.s.
Ancillary Outsourcing fees	(5,990)	(3,562)	(2,428)	68%
Net revenues	209,823	145,916		63,907 44%
⁽³⁾ Staff expenses	(89,266)	(68,092)	(21,174)	31%
Administrative expenses	(41,785)	(21,640)	(20,145)	93%
Operating expenses	(131,051)	(89,732)	(41,319)	46%
EBITDA	78,772	56,184	22,588	40%
EBITDA Margin	34%	35%	(1%)	(3)%
Non-recurring items (NRIs) included in EBITDA ⁽²⁾	(11,857)	-	(11,857)	n.s.
EBIT DA e x cl ud i ng NR I s	90,629	56,184	34,445	61%
EBITDA Margin excluding NRIs	39%	35%	4%	12%
Impairment/Write-backs on property, plant, equipment and intangible assets Net Provisions for risks and charges	(25,455) (7,456)	(3,818) 146	(21,637) (7,602)	n.s. n.s.
Net Write-downs of loans	553	450	103	23%
Net income (losses) from investments	-	917		(917) (100)%
EBIT	46,414	53,879		(7,465) (14)%
Net income (loss) on financial assets and liabilities measured at fair value	1,093	630	463	73%
Net financial interest and commissions	(4,893)	(299)	(4,594)	n.s.
EBT	42,614	54,210		(11,596) (21)%
Income tax for the period	(22,038)	(19,701)	(2,337)	12%
Profit (loss) from group of assets sold and held for sale net of tax	-	-	-	n.s.
Net Profit (Loss) for the period	20,576	34,509		(13,933) (40)%
Net Profit(Loss) attributable to non-controlling interests	(2,015)	-	(2,015)	n.s.
Net Profit (Loss) for the period attributable to the shareholders of the Parent Company	18,561	34,509	(15,948) (46)%
NRIs including in the result for the period attributable to the shareholders of the Parent Company	(26,346)	-	(26,346)	n.s.
NRIs including in the result for the period attributable to non-controlling interests	(196)	-	(196)	n.s.
Net Profit (Loss) for the period attributable to the shareholders of the Parent Company excluding NRIs 44,711		34,509	10,202	30%
Net Profit(Loss) attributable to non-controlling interests excluding NRIs	2,211	-	2,211	n.s.
Earnings per share (Euro)	0.24	0.44		(0.21) (47)%
Ea r n i ng s p e r s h a r e e x cl ud i ng NR I s (Eu r o )	0.57	0.44		0.13 29%

⁽¹⁾ In order to enhance the comparability of the figures for 2019 with the figures in the income statement, the effects of the application of the new IFRS 16 Leases as from January 1, 2019 have been included. See also the separate reconciliation table.

⁽²⁾ Non-recurring items in Operating expenses include the costs connected with the acquisition of Altamira Asset Management S.A.. And those incurred for the Group reorganisation project

⁽³⁾ Non-recurring items included below EBITDA refer to (i) termination incentive plans that have therefore been reclassified from personnel expenses, and (ii) income taxes mainly referred to the cancellation of deferred tax assets following the change in the rate as part of the debanking process

Focus on P&L items below EBITDA line

9M doValue P&L includes the first-time contribution of Altamira Asset Management (for Q3 2019) and Non-Recurring items, in line with company guidance:

Non-Recurring Items on EBITDA A

• Transaction costs of Altamira Asset Management acquisition, non tax deductible
• Group reorganization costs (transition from banking Group to servicing Group)
• Set-up costs of new businesses (Greece and UTP)

D&A B

• First-time impact of Altamira
• Total Group D&A expected at approximately €40m for 2019
• D&A of AAM contracts to follow curved profile based on cash flow dynamic of underlying portfolios
• Goodwill PPA at approx. €97m to be finalized by June 2020

Net Provisions for risk and charges C

Impact of on-going HR efficiency plan

Tax charges D

Includes €10.8m DTA reassessment charge, oneoff and non-cash, linked to the Group reorganization

Condensed consolidated income statement 9M19 – 2019 aggregate figures (constant consolidation perimeter including Altamira)

(€/000)

Condensed consolidated income statement	First nine months	First nine months	Change
	2019	2018 AGGREGATE ⁽¹⁾	Amount	%
Servicing revenues	206,586	200,108	6,478	3%
o/w NPL	173,654	175,495	(1,841)	(1)%
o/w REO	32,932	24,613	8,319	34%
UTP Servicing
Co-investment revenues	477	714		(237) (33)%
Ancillary and other revenues	26,289	20,478	5,811	28%
Gross Revenues	233,352	221,300	12,052	5%
NPL Outsourcing fees	(12,396)	(16,439)		4,043 (25)%
REO Outsourcing fees	(5,143)	(4,770)	(373)	8%
Ancillary Outsourcing fees	(5,990)	(4,556)	(1,434)	31%
Net revenues	209,823	195,535	14,288	7%
⁽³⁾ Staff expenses	(89,266)	(85,024)	(4,242)	5%
Administrative expenses	(41,785)	(32,072)	(9,713)	30%
Operating expenses	(131,051)	(117,096)	(13,955)	12%
EBITDA	78,772	78,439	333	0%
EBITDA Margin	34%	35%	(2%)	(5)%
Non-recurring items (NRIs) included in EBITDA ⁽²⁾	(11,857)	(1,784)	(10,073)	n.s.
EBIT DA e x cl ud i ng NR I s	90,629	80,223	10,406	13%
EBITDA Margin excluding NRIs	39%	36%	3%	7%
Impairment/Write-backs on property, plant, equipment and intangible assets Net Provisions for risks and charges	(25,455) (7,456)	(17,660) (4,067)	(7,795) (3,389)	44% 83%
Net Write-downs of loans	553	450	103	23%
Net income (losses) from investments	-	917		(917) (100)%
EBIT	46,414	58,079		(11,665) (20)%
Net income (loss) on financial assets and liabilities measured at fair value	1,093	(1,613)	2,706	n.s.
Net financial interest and commissions	(4,893)	630	(5,523)	n.s.
EBT	42,614	57,096		(14,482) (25)%
Income tax for the period	(22,038)	(20,683)	(1,355)	7%
Profit (loss) from group of assets sold and held for sale net of tax	-	-	-	n.s.
Net Profit (Loss) for the period	20,576	36,413		(15,837) (43)%
Net Profit(Loss) attributable to non-controlling interests	(2,015)	685	(2,700)	n.s.
Net Profit (Loss) for the period attributable to the shareholders of the Parent Company	18,561	37,098	(18,537) (50)%
⁽ ⁾ NRIs including in the result for the period attributable to the shareholders of the Parent Company ³	(26,346)	(1,388)	(24,958)	n.s.
NRIs including in the result for the period attributable to non-controlling interests	(196)	(202)	6	(3)%
Net Profit (Loss) for the period attributable to the shareholders of the Parent Company excluding NRIs	44,711	38,284	6,427	17%
Net Profit(Loss) attributable to non-controlling interests excluding NRIs	2,211	(483)	2,694	n.s.
Earnings per share (Euro)	0.24	0.47		(0.23) (49)%

Ea r n i ng s p e r s h a r e e x cl ud i ng NR I s (Eu r o ) 0.57 0.49 0.08 16% ⁽¹⁾ In order to enhance the comparability of the figures for 2019 with the figures in the income statement, 2018 is represented on a like-for-like basis, so adding Altamira's third quarter 2018 to the doValue perimeter.

⁽²⁾ Non-recurring items in Operating expenses include the costs connected with the acquisition of Altamira Asset Management S.A.. And those incurred for the Group reorganisation project

⁽³⁾ Non-recurring items included below EBITDA refer to (i) termination incentive plans that have therefore been reclassified from personnel expenses, and (ii) income taxes mainly referred to the cancellation of deferred tax assets following the change in the rate as part of the debanking process

Condensed consolidated balance sheet 9M19

(€/000)

Condensed balance sheet	9/30/2019	12/31/2018	Change
			Amount	%
Cash and liquid securities	151,271	74,443	76,828	103%
Financial assets	48,087	36,312	11,775	32%
Equity investments	-	-	-	n.s.
Tangible assets	22,027	4,290	17,737	n.s.
Intangible assets	392,687	6,847	385,840	n.s.
Tax assets	78,392	87,355	(8,963)	(10)%
Trade receivables	166,304	99,224	67,080	68%
Assets on disposal	10	710	(700)	(99)%
Other assets	10,336	7,855	2,481	32%
Total assets	869,114	317,036	552,078	n.s.
Financial liabilities: due to banks	408,735	-	408,735	n.s.
Other financial liabilities	93,161	294	92,867	n.s.
Trade payables	43,133	21,848	21,285	97%
Tax Liabilities	56,093	11,090	45,003	n.s.
Employee Termination Benefits	9,047	9,577	(530)	(6)%
Provision for risks and charges	18,104	20,754	(2,650)	(13)%
Liabilities on disposal	-	6,532	(6,532)	(100)%
Other liabilities	28,572	14,152	14,420	102%
Total Liabilities	656,845	84,247	572,598	n.s.
Share capital	41,280	41,280	-	n.s.
Reserves	152,612	140,915	11,697	8%
Treasury shares	(184)	(246)	62	(25)%
Result for the period	18,561	50,840	(32,279)	(63)%
Total shareholders' equity	212,269	232,789	(20,520)	(9)%
Minorities	-	-	-	n.s.
Total liabilities and shareholders' equity	869,114	317,036	552,078	n.s.

Consolidated cash flow 9M19

(€/000)
Cash Flow	9/30/2019	9/30/2018
EBITDA	78,772	54,393
Capex	(4,760)	(3,250)
EBITDA-Capex	74,012	51,143
as % of EBITDA	94%	94%
Adjustment for accrual on share-based incentive system payments	3,707	3,835
Changes in NWC	32,645	(4,421)
Changes in other assets/liabilities	(23,942)	(6,464)
Operating Cash Flow	86,422	44,093
Tax paid (IRES/IRAP)	(8,201)	(5,582)
Free Cash Flow	78,221	38,511
(Investments)/divestments in financial assets	(6,334)	(11,318)
Equity (investments)/divestments	(360,998)	2,610
Dividend paid	(36,264)	(30,907)
Net Cash Flow of the period	(325,375)	(1,104)

Change in Net Financial Position	(325,375)	(1,104)
Net financial position - End of period	(257,464)	37,501
Net financial position - Beginning of period	67,911	38,605

Key Performance Indicators 1H19

(€/000)

	KPIs	Sep -2019	Dec - 2018 ⁽²⁾	Sep -2018 RESTATED ⁽¹⁾
[1]	Gross Book Value (EoP) - Group	132,433,608	138,578,013	135,915,088
[2]	Gross Book Value (EoP) - Italy	77,079,160	82,179,013	83,549,481
[3]	Collections - Italy	1,235,420	1,961,177	1,334,000
[4]	LTM Collections - Italy	1,862,598	1,961,177	1,936,099
[5]	LTM Collections - Italy - Stock	1,804,343	1,768,762	1,808,324
[6]	LTM Collections / GBV EoP - Italy	2.4%	2.4%	2.3%
[7]	LTM Collections / GBV EoP - Italy - Stock	2.5%	2.5%	2.5%
[8]	Staff FTE / Total FTE	33%	37%	31%
[9]	LTM Collections / Servicing FTE - Italy	2.73	2.66	2.60
[10]	EBITDA Reported	78,772	84,013	56,184
[11]	Non-recurring items (NRIs) included in EBITDA	(11,857)	(2,712)	0
[12]	EBITDA Ordinary	90,629	86,725	56,184
[13]	EBITDA Margin Reported	33.8%	36.0%	34.7%
[14]	EBITDA Margin wo/NRIs	38.8%	37.1%	34.7%
[15]	Net Profit (Loss) for the period attributable to the shareholders of the Parent Company Reported	18,561	50,511	34,509
[16]	Non-recurring items (NRIs) included in Net Income	(26,346)	(1,784)	0
[17]	Net Profit (Loss) for the period attributable to the shareholders of the Parent Company Ordinary	44,711	52,295	34,509
[18]	Earning per share (Euro)	0.24	0.64	0.44
[19]	Earning per share wo/NRIs (Euro)	0.57	0.66	0.44
[20]	Capex	4,759	5,408	3,201
[21]	EBITDA - Capex	74,013	78,605	52,984
[22] [23] [24]	Net Working Capital Net Financial Position Leverage (Net Debt / EBITDA LTM PF)	123,171 (257,464) 1.5x n.a.	77,387 67,911	82,686 37,501 n.a.

⁽¹⁾ In order to enhance the comparability of the figures for 2019 with the figures in the income statement, the effects of the application of the new IFRS 16 Leases as from January 1, 2019 have been included. See also the separate reconciliation table.

⁽²⁾ With regard to the indicators from [1] to [9], in order to enhance the comparability of the figures for 2019 with the figures in the income statement, the effects deriving from the acquisition of Altamira were included in the 2018 data as if this had occurred from 1 January 2018

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Certification of the financial reporting o fficer

Elena Gottardo , in her capacity as the officer responsible for preparing corporate accounting documents, certifies – pursuant to Article 154-bis, paragraph 2, of Legislative Decree 58/1998 (the Consolidated Financial Intermediation Act) – tha t the accounting information in this presenta tion is consistent with the data in the accounting documentation, books and other accounting records.

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