DoValue S p A : Full year 2020 Financial Results

Full year 2020 Financial Results

March 31st, 2021

Full year 2020 key messages

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€13bn new AuM, exceeding pre-Covid targets with a positive FY20 momentum

• +€8.6n GBV from new servicing mandates on the high end of the €7-9bn target in addition to €3.2GBV to be onboarded
• + €4.4bn GBV from forward flow agreements, above €2.0bn guidance despite moratoria
• EBITDA ex NRI at €125.3m with continued sequential growth from €41m in 3Q to €49m in 4Q
• Higher base fees (36% vs. 22% of total revenues) have provided a cushion for temporary volatility of collections
• Re-openingof economies and new GBV added in 2020 will sustain collections and EBITDA growth in 2021

Strong cash flow generation and return to dividend distribution in 2021

• Operating cash flow generation at €120m with >100% cash conversion rate on reported EBITDA
• Net financial debt at €389m as of February 2021 and 2.7x PF leverage at the end of 2020
• Further deleverage in 2021 and EBITDA growth will provide headroom for both dividend distribution and M&A
• The BoD will propose a dividend payout of 100% of Net Income ex NRI (well above minimum dividend policy)
• M&A focus on in-market consolidation and business diversification across fintech, big data and proptech sectors

GBV:

€161bn

Operating Cash flow:

€120m

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Integration of acquisitions and operational efficienties projects on track

• Fully integrated Altamira and on-track for integration of doValue Greece
• Completed deployment of RE platform in Greece and Italy
• Continuous cost reduction initiatives and unification of in-countries IT platforms

Cost savings: €20m (2020)

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New servicing mandates: better than pre-COVID target

€bn				FY20 new servicing mandates and short-term pipeline
GBV	Including €3.2bn of
	signed contracts to be		▪	Unicredit		▪ Investor
	onboarded	€16.1bn			▪ Project
		Leasing GACS			portfolio in
							ICON (GR,
			actual					Spain
			▪	Iccrea GACS				Bain)
	€10bn				▪	REO		10.0
							▪ Project
			▪	Multi-bank UTP
	pre-COVID					portfolio in
							Marina
	target				mandate	8.0		Portugal
							(CY, Bain)	7.5
			11.8							▪ Alpha
								5.0	Bank
									Cyprus
					3.4					(CY)
	8.0
			4.4					0.9
	2.0
	2020 Target		2020 Actual		Italy			Iberia Region		Hellenic Region
	Forward Flows	New Servicing Mandates			2020 New Servicing Mandates	Current Servicing Pipeline

Forward Flows

New Servicing

mandates

• Better than expected trend in Spain and Cyprus, chiefly due to flows from Santander
• Slower trend in Italy, where bank moratoria have been more stringent
• Cautious expectations in 1H21, due to moratoria extension until June in most countries, with pick-upforeseen more in 2H21
• Very strong performance of Italy, with repeat business from ICCREA and Unicredit, testifying our track record and significant innovation capabilities with a Leasing GACS and a multi-bankcorporate UTP portfolio
• Hellenic Region also better than expected due to synergetic relationship with Bain Capital Credit yielding results

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Strong FY2020 financial results despite Covid

Gross Revenues

€m

473

418

364

2019A 2020A(1)2020PF(2)

• Base fees at 36% of revenues, underpinning the defensive features of doValue's business model
• Benefits of Altamira and doValue Greece integration more than offset the disruption caused by lockdown

EBITDA Ex NRI

€m

153

140

125

2019A 2020A(1)2020PF(2)

• Impact on profitability limited by quick reduction in variable costs
• Significant actions on all fixed cost items, focused on HR, IT, SG&A

Net Income is affected by a significant amout of D&A related to PPA (€38.6m in 2020) which originates from non recurring investments (i.e acquisitions) out of total D&A of €62.6m

Net Income Ex NRI

€m

52

27

21

2019A 2020A(1)2020PF(2)

• Reduction of Net Income ex NRI impacted mainly by non-cash D&A component and financial charges related to acquisitions

Resilient business model providing strong financial results with limited and temporary impact from COVID-19

Notes: (1) Assumes doValue Greece consolidated from June 2020 (2) Assumes doValue Greece consolidated for 12 months of 2020

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Strong cash flow supporting dividend and M&A

Net financial position		Operating free cash flow		M&A Strategy

1.3x	2.0x	2.7x	Leverage Ratio	€m
			Pro Forma LTM			125	2019
						120
€m
					76		✓
				73
	397	411	389				✓
237
							✓
Dec-19	Jun-20	Dec-20	Feb-21	2017	2018	2019	2020

2020

Geographical diversification completed

+81bn GBV of new stocks + 2 new forward

flows agreements

Prudent approach with leverage within 3x even after accounting for COVID impact

• Strong cash position of +130m increased to €157m as of Feb 21
• Undrawn RCF for up to €80m
• Access to debt capital market with a NC2 2025 bond issued in 2020
• Leverage ratio expected to increase slightly in 1Q21 mainly due to LTM EBITDA and trending down afterwards

• €394m of operating cash flow generated over the last 4 years with €127m1 of capital returned to shareholder mainly by dividend distributions
• Current dividend policy allows for minimum 65% payout out of Net Income ex NRI however decision not to pay dividends of c.€50m in 2020 (on 2019 earnings) to preserve a strong financial profile and liquidity

• doValue continues monitoring the market environment for potential opportunities both in existing markets and via diversification in higher growth potential contiguous sectors such as fintech, big data and proptech
• Commitment to keep leverage target within 3.0x Net Debt /EBITDA

BoD will propose a dividend distribution of €20.8m or 100% payout out of Net Income ex NRI to be paid in August 2021

Notes: 1: including €1.9m of dividend distributed during 2020 to Banco Santander, as minority shareholder of Altamira Spain and not including a dividend of €21 million which will be proposed to the next shareholders' meeting

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