DoValue S p A : Document -PDF

Consolidated Reports and Accounts

2021

Consolidated

Reports and Accounts

Registered office: Viale dell'Agricoltura, 7 - 37135 Verona

Share capital € 41,280,000.00 fully paid-up

Parent Company of the doValue Group

Registered in the Company Register of Verona, Tax I.D. no. 00390840239 and VAT registration no. 02659940239

DIRECTORS'REPORT

ONTHEGROUP

1	Consolidated Financial Statements	96
Illustrative Notes
2	Accounting policies	106
3	Information on the Consolidated Balance Sheet	148
4	Information on Consolidated Income Statement	178
5	Information on Risks and Risk Management Policies	190
6	Segment reporting	204
7	Business Conbination	208
8	Related-party transactions	218
9	Annexes	225
10	Certifications and Reports	229
Certification of the Financial Reporting Officer
Independent Auditor's Report

4 43 94

CONSOLIDATEDFINANCIALSTATEMENTSATDECEMBER31,2021

4 doValue Consolidated Reports and Accounts 2021

Dear Shareholders and Stakeholders,

In 2021 the doValue Group achieved record results, with around €14.7 billion in newly awar-ded Gross Book Value, Gross Revenues of €572.1 million, up by 36% compared to 2020, and an EBITDA excluding non-recurring items of €200.9 million, up by 58% compared to 2020. Fur- thermore, the Group's profitability increased by almost five percentage points, with an EBIDTA margin (excluding non-recurrent items), which grew from 30.3% in 2020 to 35.1% in 2021.

The growth recorded was mainly achieved through the acquisitions of Altamira Asset Management and FPS, respectively in 2019 and 2020, which are now fully integrated.

Thanks to the progressive acceleration of the vaccination campaign during 2021, which gradually led to the normalisation of court activities and the suspension of the various measures implemented by different governments to support businesses and households, the Group's operations have returned to pre-pandemic levels, in particular with a recovery rate of 4.3%, higher than the level of 3.1% achieved in 2020 and of 4.1% reached in 2019.

The Frontier Project was one of the most significant transactions in 2021, the first securi-tisation of non-performing loans by NBG, the largest Greek bank in terms of total assets, under the Hellenic Asset Protection Scheme, successfully awarded after a competitive process in which doValue participated in a consortium with companies affiliated with Bain Capital and Fortress. Recently we have presented to the financial community a new 2022-2024 Business Plan, which outlines a significant organic growth, leveraging long- term structural market trends and a greater cross-selling activity in the region in which we already operate. We will continue to drive development in the credit servicing sector by investing in technology and strengthening the long-term strategic partnerships with banks and investors in a wider reference market to create value for all Stakeholders.

With particular regard to dividends, the expected strong cash generation and the thrust towards a growth more strongly driven by organic development allow us to review our dividend policies independently from profits, aimed at increasing distribution to sharehol-ders and a greater visibility with the same.

As presented in the Business Plan, doValue is committed to pay a growing dividend per share, at a rate of at least 20% per year in the 2021-2024 period, starting with €0.50 per share, that is to pay total dividends of at least €200 million.

Both in geographical terms and in terms of customers and products, we seek diversifi- cation to achieve a more complete offer for customers and a more balanced risk profile for shareholders.

At the same time our innovation strategy has focussed on new acquisitions, such as the case of the minority interest transactions with the fintech QueroQuitar and the protech company BidX1, as well as the creation of the joint venture with Debitos for the con-struction of the doLook NPL trading platform.

Introduction

5

Sustainability represents one of the pillars of the Company's Business Plan. Inspired by listening to our own Stakeholders and by the willingness to actively contribute to a more inclusive and sustainable future, in December 2021 the Group published its first 2021- 2023 Sustainability Plan, as well as its relative Policy, approved by the Board of Directors.

doValue has a delicate role in the financial ecosystem and this implies the need to act with transparency, independence and integrity with respect to customers and debtors. The doValue business is linked to people so it is important to enhance and develop pro- fessional profiles, strategic drivers to guarantee sustainable innovation and growth.

doValue's operating excellence and real commitment to sustainability are apparent in the recent ratings obtained for Servicing Rating and ESG Rating Agencies: in February 2022, for the role of Special Servicer, Fitch Ratings confirmed its "RSS1-/CSS1-" rating and Stan- dard & Poor's its "Strong" rating, which represent the highest Servicer Ratings among those assigned to Italian operators in the sector.

In October 2021, MSCI ESG Ratings improved doValue's ESG rating from "A" to "AA", a tangi-ble example of doValue's commitment to adopt best practices in the interest of its Stakehol-ders, in particular customers, capital providers (shareholders and bondholders), employees, and the broader social and environmental ecosystem in which the Company operates.

I thank our employees, Board of Directors and Stakeholders with whom we will continue to operate with our utmost commitment towards the creation of value and the achieve- ment of increasingly significant results.

Chairman of the Board of Directors

Giovanni Castellaneta