Dovalue

Investor Presentation • Feb 23, 2024

Preliminary FY 2023 Financial Results

February 23rd, 2024

1 Q2 2023 results

•Business Highlights

•Manuela Franchi Group CEO

2 Q2 2023 results

FY 2023 and Q4 Highlights

FY23 in line with expectations with strong performance in Q4

• FY '23 EBITDA ex NRI in line with company guidance and analysts' consensus (-11.5% YoY or -4.1% net of Sareb effect)
• 2023 results to be read within a challenging scenario in credit servicing markets in Europe with low NPL generation despite high rates
• Resilient AUM (€116.4bn vs €120.5bn) and continuing improvement in collection rates
• Q4 positive momentum with Gross Revenues growing +13.5% QoQ and EBITDA ex NRI margin at 43.2% (+5.7 p.p. QoQ)
• Planning exit from Portugal and focusing on RE development services only relative to collaterals of managed loans in Spain
• Spain and Hellenic Region delivering double-digit growth in EBITDA ex NRI (+43.9% and +41.8% QoQ respectively)
• Manageable leverage of 2.7x EBITDA despite significant historical dividend pay-out, non-recurring transactions
• Currently finalizing DOV's 2024-2026 CMD to be presented on 21 March 2024

Good momentum in a transitional year

Results in line with Nov-2023 guidance

Results in line with Nov-2023 guidance

	Guidance 2023 Nov-23	Press Release Jan-24	Preliminary FY 2023	2024 outlook
Gross Revenues (1)	€490-500m	Slightly (~2%) lower than the lower-end	✓ €486m	DOV is currently finalizing its new CMD for the period ▪ 2024-2026, including financial targets on key variables
		guidance		for the 3-year period The CMD is scheduled for 21 March 2024 with the ▪
EBITDA ex NRIs	€175-185m (~36% margin)	Confirms EBITDA Guidance	✓ €178m	▪ As an anticipation, 2024 to be a year of transformation and investments to lay the foundations for subsequent growth in 2025 and 2026 ▪ Results in 2024 to be read in the context of the execution
				of the transformation program, with further initiatives in all the regions, where full effect of cost saving measures will not yet be visible in H1
Financial Leverage	~2.7x	Confirms Leverage Guidance		▪ Dividends distribution in 2024 will be evaluated in the context of the CMD and overall financial policy other
				than plain NPLs
			✓ 2.7x	presence of key management team ▪ Continued effort towards diversification of revenue

Delivery on guidance

•Notes: (1) including Portugal classified as NRI in 2023 due to the ongoing sale process of 100% of doValue Portugal, €481m without Portugal

4 9M 2023 results FY 2023 results Q2 2023 results

Resilient and diversified growth

Growth and demonstrated adaptation to challenging market conditions

•Notes: (1) excluding Portugal in 2023 classified as NRI in 2023 due to the ongoing sale process of 100% of doValue Portugal, €486m including Portugal

2023 FY and Q4 Gross Revenues

Growth coming back in Q4

•Notes: (1) excluding Portugal in 2023 classified as NRI in 2023 due to the ongoing sale process of 100% of doValue Portugal, €486m including Portugal

Drill down on diversified revenues

Strengthening Revenue Stability Through Diversified Growth Amidst NPL Volume Decline

GBV intake in 2023

Strong market share in a weak year for primary transactions

Key milestones of doTransformation

Main targets of 2022-24 Business Plan already achieved

• Centralisation of Group Governance
• Empower Regional Concept
• Establish Back-office Hubs
• Centralise IT Group Services
• Optimise Cost Base
• Improve Client Service
• Enhance Recovery Capabilities
• Reinforce Sale Capabilities
• Enhance Technological Platform
• Boost Data Analytics
• Improve Track Record
• Win More Business

≈ €55m total investment for Global and Local Transformation (2022-2024) reduced to €35m spend

Confirmed run rate €25m in savings per annum after 2024 (incl. Ops) of which €18m achieved by 2023 (not considering a cost avoidance, amount of €3m+)

Positive workforce dynamic thanks to efficiency of processes and proactive workforce reduction measures (-~300 FTE)

Avg. cost reduced despite inflationary pressures (HR cost/FTE from €70k to €68k)

Capital structure

Manageable upcoming maturities in the next 18 months

•Financial Results

•Davide Soffietti Group CFO

11 Q2 2023 results

Financials at a glance

Improved profitability in Q4 thanks to flexible cost structure

Item	Q4 2022	Q4 2023	∆%	FY 2022	FY 2023	∆%	∆% Excl. Sareb
GBV	€120bn	€116bn	-3.4%	€120bn	€116bn	-3.4%	-3.4%
Collections	€1.6bn	€1.5bn	-2.5%	€5.5bn	€4.9bn	-10.0%	+5.1%
Collection Rate				4.1%	4.6%	+0.5 p.p.
Gross Revenues (1)	€133m	€151m	+13.5%	€558m	€486m	-13.0%	-4.6%
Net Revenues (1)	€120m	€139m	+15.0%	€500m	€443m	-11.4%	-4.4%
EBITDA ex NRIs	€50m	€63m	+26.6%	€202m	€178m	-11.5%	-5.1%
EBITDA ex NRIs margin	37.5%	43.2%	+5.7 p.p.	36.1%	37.1%	+1.0 p.p.
Attributable Net Income ex NRIs	€5m	€17m	>100.0%	€50m	€3m	-94.7%

•Note: Delta % calculated on data rounded to the second decimal numeral in this presentation | (1) Including Portugal, classified as NRI in 2023 due to the ongoing sale process of 100% of doValue Portugal: Gross Revenues €481m, Net revenues €440m without Portugal respectively

GBV Dynamic

New inflows for €9.7bn. GBV EoP worth €68.2bn for Italy, €37.3bn for Hellenic region and €10.9bn for Spain

GBV evolution (€bn) (1) Comments

• Inflows from existing clients lower than 2022 by €0.4bn (-10.5%). Decline mostly attributable to Santander contract where loans are predominantly ICO-backed and are also negatively impacted by delays in the Spanish civil courts
• Mandates from new clients mostly from Hellenic Region
• Weak Italian primary pipeline and Spain gaining traction
• Disposal related mostly to Pillar contract (€2bn) and Cairo (€1.1bn, but gained as new mandates from new clients investing in the secondary transactions) in Greece. Additional minor disposals from UniCredit and Santander
• doValue re-captured approximately 35% of the disposed GBV through new mandates with buyers (secondary transactions in Greece and Fortress contracts in Spain)
• New contract agreed in 2024 already at €1.4bn

Gross Revenues

Revenues diversification on track despite mixed signals from NPL core markets

Gross Revenues (€m) (1) Comments

Notes: (1) Including Portugal, classified as NRI in 2023 due to the ongoing sale process of 100% of doValue Portugal: Gross Revenues €481m excl. Portugal

▪ Group

• Although Collections drop by 10.0% YoY (+5.1% ex Sareb), gross revenues decreased by 4.6% ex Sareb thanks to replacement of older GBV vintages with newer assets and higher revenues on UTPs and ancillaries
• Gross revenues decrease YoY by -13.0% mainly due to Sareb off-boarding in Spain, with significant pick up in Q4 growing by 13.5% YoY

▪ Hellenic Region

• Strong collections up +27% YoY with revenues mostly stable because (comparison with FY22 affected by large Mexico indemnity fees in 3Q22)
• REO and ancillary now represents 17.5% of Hellenic Region revenues vs. 9.2% in 2022

▪ Italy

• Subdued performance on collections from older GACS partially compensated by pick-up in collections form newer GACS onboarded in 2021 and 2022 which are showing an increase in collections by 34%
• Higher ancillary revenues whose shares on total is increasing from 19.7% in 2022 to 25.8% thanks to a strong performance of UTPs, data quality services and master legal

▪ Iberia

• Lower collections and gross revenue due to Sareb offboarding effect
• New early-in-arrears contracts ramping up and gaining momentum
• Lower flows from Santander due to contained default ratios in the Spanish market but collection rate improving like-for like and performing better than peers

Operating Expenses

Ongoing cost reduction effort despite inflationary pressures in Q4

EBITDA ex NRI

Strong momentum in Q4 while FY comparison was affected by extraordinary items

▪ Group

▪ EBITDA lower because Sareb offboarding and lower indemnities fees in Greece (Mexico for €45m)

▪ Hellenic Region

• Strongest performance in the Group driven by increasing collections and new business, with ancillary revenues picking up
• Very strong momentum in Greece in Q4 (+44.6%)

▪ Italy

• EBITDA negatively impacted by lower collections and weak GBV intake
• Includes Group costs allocation for €14m (-27.7% YoY)
• Spain
  • Reduced inflows of NPL from Santander
  • Negative impact from REOs sales due to real estate market prices
  • Significant cost efficiency initiatives
  • EBITDA stabilizing with turnaround almost completed
  • New business initiatives to gradually pick-up

Regional Performance

Improving collection performance overall

FY 2023	Group	Hellenic Region	Italy	Iberia
Gross Book Value	€116bn	€37bn (32% of total)	€68bn (59% of total)	€11bn (9% of total)
Collections	€4.9bn	€2.2bn (43% of total)	€1.7bn (34% of total)	€1.1bn (23% of total)
Collection Rate	4.6%	7.0%	2.5%	11.0%
Gross Revenues	€486m(2)	€251m (52% of total)	€164m (34% of total)	€71m (14% of total)
EBITDA ex NRIs	€178m	€144m	€40m (1)	€2m
EBITDA margin ex NRIs	37%	57%	24%	3%

Note: (1) EBITDA for Italy excluding Group costs worth €8m | (2) Including Portugal, classified as NRI in 2023 due to the ongoing sale process of 100% of doValue Portugal: Gross Revenues €481m excl. Portugal

Net Income

Net Income affected by higher provisions in Spanish intangibles with no impact on cash flow

Cash Flow

Improving working capital dynamic

Comments

• Positive Cash Flow from Operations of €79.4m in 2023 vs. €83.6m in 2022
• Better performance on NWC vs 2022 in all regions due to a specific action plan to focus BUs on cash generation. Room for further improvement as some NWC is still affected by items related to sales on secondary market with financial definition delayed
• Change in Other assets and liabilities substantially in line vs 9M 2022, main effects are related to:
  • Redundancies (€10m)
  • Frontier deferred price (€6m)
  • IFRS 16 leases (€15m)
  • Adv. Payment in REO Project in Spain (€3m)
  • Other liabilities included for included VAT and pass through costs and IFRS 15 items
• Cash taxes paid for €27.6m
• Interest on bond coupon 2023 for €23.3m net of interest rates earned on cash
• Cash out for put option on doValue minorities worth €21m classified under equity investments

Note: (1) In order to better represent the substance of cash flow dynamics, some items have been reclassified from other asset/liabilities to NWC (ERB advance payments)

Deep down on cash flow dynamics

• IFRS 15: Release of provision on curing. This items will be lower in the following
• Redundancies: amount linked to resizing of operations mainly in Spain
• IFRS 16: rents on headquarters. Stable over the next year and reducing overtime
• Adj accrual share based: release of previous CEO bonus. Item to be reduced significantly in the next year
• Other items: one off cash out for real estate investment in Spain, Frontier upfront payment. Amount to be reduced in the following years

•Appendix

21 Q2 2023 results

Condensed Income Statement

Condensed Income Statement	12/31/2023	12/31/2022	Change €	Change %
Servicing Revenues:	419,889	510,164	(90,275)	(17.7)%
o/w: NPE revenues	366,696	433,538	(66,842)	(15.4)%
o/w: REO revenues	53,193	76,626	(23,433)	(30.6)%
Co-investment revenues	1,290	1,507	(217)	(14.4)%
Ancillary and other revenues	64,552	46,578	17,974	38.6%
Gross revenues	485,731	558,249	(72,518)	(13.0)%
NPE Outsourcing fees	(14,365)	(20,913)	6,548	(31.3)%
REO Outsourcing fees	(9,684)	(22,631)	12,947	(57.2)%
Ancillary Outsourcing fees	(18,525)	(14,285)	(4,240)	29.7%
Net revenues	443,157	500,420	(57,263)	(11.4)%
Staff expenses	(196,240)	(212,395)	16,155	(7.6)%
Administrative expenses	(71,849)	(89,317)	17,468	(19.6)%
Total o.w. IT	(30,672)	(33,034)	2,362	(7.2)%
Total o.w. Real Estate	(5,084)	(5,586)	502	(9.0)%
Total o.w. SG&A	(36,093)	(50,697)	14,604	(28.8)%
Operating expenses	(268,089)	(301,712)	33,623	(11.1)%
EBITDA	175,068	198,708	(23,640)	(11.9)%
EBITDA margin	36.0%	35.6%	0.4%	1.3%
Non-recurring items included in EBITDA	(3,355)	(2,979)	(376)	12.6%
EBITDA excluding non-recurring items	178,423	201,687	(23,264)	(11.5)%
EBITDA margin excluding non-recurring items	37.1%	36.1%	1.0%	2.7%
Net write-downs on property, plant, equipment and intangibles	(92,268)	(71,021)	(21,247)	29.9%
Net provisions for risks and charges	(18,463)	(13,963)	(4,500)	32.2%
Net write-downs of loans	(906)	493	(1,399)	n.s.
EBIT	63,431	114,217	(50,786)	(44.5)%
Net income (loss) on financial assets and liabilities measured at fair value	(8,180)	(22,520)	14,340	(63.7)%
Net financial interest and commissions	(29,042)	(28,868)	(174)	0.6%
EBT	26,209	62,829	(36,620)	(58.3)%
Non-recurring items included in EBT	(21,582)	(35,901)	14,319	(39.9)%
EBT excluding non-recurring items	47,791	98,730	(50,939)	(51.6)%
Income tax for the period	(40,563)	(36,354)	(4,209)	11.6%
Profit (Loss) for the period	(14,354)	26,475	(40,829)	n.s.
Profit (loss) for the period attributable to Non-controlling interests	(4,527)	(9,973)	5,446	(54.6)%
Profit (Loss) for the period attributable to the Shareholders of the Parent Company	(18,881)	16,502	(35,383)	n.s.
Non-recurring items included in Profit (loss) for the period	(23,328)	(35,494)	12,166	(34.3)%
O.w. Non-recurring items included in Profit (loss) for the period attributable to Non-controlling interest Profit (loss) for the period attributable to the Shareholders of the Parent Company excluding non	(1,755)	(1,433)	(322)	22.5%
recurring items	2,692	50,563	(47,871)	(94.7)%
Profit (loss) for the period attributable to Non-controlling interests excluding non-recurring items	6,282	11,406	(5,124)	(44.9)%
Earnings per share (in Euro)	(0.24)	0.21	(0.45)	n.s.
Earnings per share excluding non-recurring items (Euro)	0.03	0.64	(0.61)	(94.7)%

Condensed Balance Sheet

Condensed Balance Sheet	12/31/2023	12/31/2022	Change €	Change %
Cash and liquid securities	112,376	134,264	(21,888)	(16.3)%
Financial assets	46,167	57,984	(11,817)	(20.4)%
Property, plant and equipment	48,387	59,191	(10,804)	(18.3)%
Intangible assets	473,339	526,888	(53,549)	(10.2)%
Tax assets	98,679	118,226	(19,547)	(16.5)%
Trade receivables	200,537	200,143	394	0.2%
Assets held for sale	16	13	3	23.1%
Other assets	46,739	29,889	16,850	56.4%
Total Assets	1,026,240	1,126,598	(100,358)	(8.9)%
Financial liabilities: due to banks/bondholders	587,628	564,123	23,505	4.2%
Other financial liabilities	96,540	120,861	(24,321)	(20.1)%
Trade payables	85,003	70,381	14,622	20.8%
Tax liabilities	63,689	67,797	(4,108)	(6.1)%
Employee termination benefits	8,412	9,107	(695)	(7.6)%
Provisions for risks and charges	26,356	37,655	(11,299)	(30.0)%
Other liabilities	54,635	75,754	(21,119)	(27.9)%
Total Liabilities	922,263	945,678	(23,415)	(2.5)%
Share capital	41,280	41,280	-	n.s.
Reserves	35,675	83,109	(47,434)	(57.1)%
Treasury shares	(6,095)	(4,332)	(1,763)	40.7%
Profit (loss) for the period attributable to the Shareholders of the Parent Company	(18,881)	16,502	(35,383)	n.s.
Net Equity attributable to the Shareholders of the Parent Company	51,979	136,559	(84,580)	(61.9)%
Total Liabilities and Net Equity attributable to the Shareholders of the Parent Company	974,242	1,082,237	(107,995)	(10.0)%
Net Equity attributable to Non-Controlling Interests	51,998	44,361	7,637	17.2%
Total Liabilities and Net Equity	1,026,240	1,126,598	(100,358)	(8.9)%

Condensed Cash Flow

Condensed Cash flow	12/31/2023	12/31/2022
EBITDA	175,068	198,708
Capex	(21,300)	(30,833)
EBITDA -Capex	153,768	167,875
as % of EBITDA	88%	84%
Adjustment for accrual on share -based incentive system payments	(5,853)	5,557
Changes in Net Working Capital (NWC)	(11,746)	(15,137)
Changes in other assets/liabilities	(56,610)	(74,697)
Operating Cash Flow	79,559	83,598
Corporate Income Tax paid	(27,595)	(44,042)
Financial charges	(23,329)	(27,146)
Free Cash Flow	28,635	12,410
(Investments)/divestments in financial assets	2,598	3,664
Equity (investments)/divestments	(21,520)	-
Treasury shares buy -back	(2,115)	-
Dividends paid to minority shareholders	(5,000)	(5,002)
Dividends paid to Group shareholders	(47,992)	(39,140)
Net Cash Flow of the period	(45,394)	(28,068)
Net financial Position - Beginning of period	(429,859)	(401,791)
Net financial Position - End of period	(475,253)	(429,859)
Change in Net Financial Position	(45,394)	(28,068)

Glossary

BPO	Business Process Outsourcing, i.e. the outsourcing of non-strategic support activities by banks
Early Arrears	Loans that are up to 90 days past due
Forward Flows	Agreement with commercial bank related to the management of all future NPL generation by the bank for number of years, customary feature of credit servicing platforms spun off by commercial banks
FTE	Full Time Equivalent, i.e. a unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts
GACS	Garanzia Cartolarizzazione Sofferenze, i.e. the State Guarantee scheme put together by the Italian Government in 2016 which favoured the creation of a more liquid NPL market in Italy and allowed banks to more easily deconsolidate NPL portfolios through securitisations
GBV	Gross Book Value, i.e. nominal value of assets under management by doValue, represents the maximum / nominal claim by banks / investors to borrowers on their portfolios
HAPS	Hercules Asset Protection Scheme, i.e. the State Guarantee scheme put together by the Greek Government in 2019 with the aim of favouring the creation of a more liquid NPL market in Greece and to allow banks to more easily deconsolidate NPL portfolios through securitisations
NPE	Non-Performing Exposure, i.e. the aggregate od NPL, UTP and Early Arrears
NPL	Non-Performing Loan, i.e. loans which are more than 180 days past due and have been denounced
NRI	Non-Recurring Items, i.e. costs or revenues which are non-recurring by nature (typically encountered in M&A or refinancing transactions)
Performing Loans	Loans which do not present problematic features in terms of principal / interest repayment by borrowers
REO	Real Estate Owned, i.e. real estate assets owned by a bank / investor as part of a repossession act
UTP	Unlikely to Pay, i.e. loans that are between 90-180 days past due and denounced or more than 180 past due and not denounced

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

Pursuant to Article 154 bis, paragraph 2, of the "Consolidated Law on Finance", Mr Davide Soffietti, in his capacity as the Financial Reporting Officer with preparing the financial reports of doValue S.p.A, certifies that the accounting information contained in this document, is consistent with the data in the supporting documents and the Group's books of accounts and other accounting records.

Investor Relations Contacts

Name: Daniele Della Seta Head of Group M&A, Strategic Finance and Investor Relations E-mail: investorrelations@dovalue.it

•Leading the evolution of the servicing industry

27 Q2 2023 results