Reports and Financial
Statements of the
Company
2023
REPORTS AND
FINANCIAL
STATEMENTS
OF THE COMPANY
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. 0265994023
www.dovalue.it
GOVERNING AND CONTROL BODIES
DIRECTORS’ REPORT
FINANCIAL STATEMENTS AT DECEMBER 31, 2023
1. FINANCIAL STATEMENTS
ILLUSTRATIVE NOTES
2. ACCOUNTING POLICIES
3. INFORMATION ON THE BALANCE SHEET
4. INFORMATION ON INCOME STATEMENT
5. INFORMATION ON RISKS AND RISK MANAGEMENT POLICIES
6. SEGMENT REPORTING
7. BUSINESS COMBINATIONS
8. RELATED-PARTY TRANSACTIONS
9. ANNEXES
10. PROPOSED ALLOCATION OF NET PROFIT FOR THE YEAR
11. CERTIFICATIONS AND REPORTS
CERTIFICATION OF THE FINANCIAL REPORTING OFFICER
REPORT OF THE AUDIT FIRM
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6
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51
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139
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147
151
153
155
CONTENTS
FINANCIAL STATEMENTS AS AT DECEMBER 31, 2023
DIRECTORS’ REPORT
control bodies
Governing and
BOARD OF DIRECTORS
Chairman GIOVANNI CASTELLANETA
(2)
CEO MANUELA FRANCHI
Directors FRANCESCO COLASANTI
(2)
GIOVANNI BATTISTA DAGNINO
(4)
CRISTINA FINOCCHI MAHNE
(3)
NUNZIO GUGLIELMINO
(1)
GIUSEPPE RANIERI
ROBERTA NERI
(4)
MARELLA IDI MARIA VILLA
(2)
ELENA LIESKOVSKA
(2)
BOARD OF STATUTORY AUDITORS
Chairman NICOLA LORITO
(6)
Statutory Auditors FRANCESCO MARIANO BONIFACIO
(6)
CHIARA MOLON
(5)
Alternate Auditors SONIA PERON
MAURIZIO DE MAGISTRIS
AUDIT FIRM EY S.p.A.
Financial Reporting Officer DAVIDE SOFFIETTI
At the date of approval of this document
(1) Chairman of the Appointments and Remuneration Committee
(2) Member of the Appointments and Remuneration Committee
(3) Chairman of the Risks, Related Party Transactions and Sustainability Committee
(4) Member of the Risks, Related Party Transactions and Sustainability Committee
(5) Chairman of Supervisory Committee, pursuant to Italian Legislative Decree 231/2001
(6) Member of Supervisory Committee, pursuant to Italian Legislative Decree 231/2001
4 4
5
doValue: a story of
growth and diversification
2017
GBV
€77 bn
€82 bn
€132 bn
€158 bn
€150 bn
€120 bn
Listing on Borsa Italiana (now Euronext Milan)
doBank enters the Greek servicing market and announces the acquisition
of Altamira Asset Management, active in Spain, Portugal and Cyprus
doBank renounce to its banking license and takes on the name
doValue, completes the acquisition of Altamira (today doValue Spain)
and becomes market leader in Southern Europe
doValue announces the acquisition of Greek servicer FPS Loans
and Credits Claim Management
doValue completes the acquisition of FPS (today doValue Greece)
and becomes market leader in Greece
doValue has completed the issue of its first bond
doValue signs an agreement for the investment in a stake of c.10%
in Brazilian fintech company QueroQuitar
doValue completes the issuance of its second bond
doValue acquires an approximately 15% stake in lrish proptech
company BidX1
doValue admitted to the STAR segment of Euronext Milan
Expiry of the contract with Sareb and off-boarding of its €21 bn portfolio
2018
2019
2020
2021
2022
doValue completes the acquisition of Team 4 in Spain to boost its
SMEs business unit
Successful onboarding of Sky Portfolio in Cyprus
New CEO appointed Manuela Franchi
doValue has been upgraded from MSCI ESG Research and Moody’s Analytics.
Respectively from “AA” to Leader “AAA” and from “Limited” to “Robust”
2023
€116 bn
6
DIRECTORS’
REPORT
The summary results and financial indicators are based on
accounting data and are used in management reporting to
enable management to monitor performance.
They are also consistent with the most commonly used metrics
in the relevant sector, ensuring the comparability of the figures
presented.
6
7
doValue provides services to banks and investors over the entire life cycle of loans and real estate
assets.
doValue’s services are remunerated under long-term contracts based on a fee structure that
includes fixed fees based on the volume of assets under management and variable fees linked
to the performance of servicing activities, such as collections from NPL receivables or the sale
of customers’ real estate assets or the number of real estate and business information services
provided; in the context of the same activity, ancillary services may also be offered, the remuneration
of which is linked to the type of service provided.
The Company provides services, also through its subsidiaries, in the following categories:
NPL Servicing
The administration, management and recovery of loans utilising in-court
and out-of-court recovery processes for and on behalf of third parties
for portfolios mainly consisting in non-performing loans. Within its NPL
Servicing operations, doValue focuses on corporate bank loans that are of
medium-large size and have a high proportion of real estate collateral
Real Estate
Servicing
The management of real estate assets on behalf of and under mandate from
third parties, including: (1) real estate collateral management, i.e., activities
to develop or sell, either directly or through intermediaries, real estate assets
owned by customers originally used to secure bank loans, (2) Real estate
development, i.e., the analysis, implementation and marketing of real estate
development projects involving assets owned by customers, and (3) Property
management, i.e., supervision, management and maintenance of customers’
real estate assets, with the aim of maximising profitability through sale or
lease
UTP Servicing
Administration, management and restructuring of loans classified as
unlikely-to-pay on behalf of third parties, with the aim of returning them
to performing status; this activity is primarily carried out by the doNext
subsidiaries, pursuant to Art. 106 of the Consolidated Banking Act (financial
intermediary) and doValue Greece, pursuant to Greek Law 4354/2015 (NPL
Servicer under the license and supervision of the Bank of Greece)
DIRECTORS’ REPORT
The Company’s business
€116bn
IN ASSET
UNDER MANAGEMENT
RSS1- / CSS1-
FITCH RATINGS
STRONG
STANDARD & POOR’S
RATING
8
doValue, in its capacity as Special Servicer, has received the following ratings confirmed in February
2022: “RSS1-/CSS1-” by Fitch Ratings, and “Strong” by Standard & Poor’s, which are the highest
ratings assigned to Italian operators in the sector. They have been assigned to the two companies
since 2008 before any other operator in this sector in Italy. doNext, as a Master Servicer, received
an MS2+ rating from Fitch Ratings in February 2022, which is an indicator of high performance in
overall Servicing management capability.
In July 2020, doValue received the Corporate credit rating BB with “Stable” outlook from Standard
& Poor’s and Fitch.
This rating has been confirmed by both agencies in relation to doValue’s senior bonds, issued with
an original nominal value of €265.0 million and €300.0 million with maturity in 2025 and 2026,
respectively. The rating was confirmed in June 2023 by both Fitch and Standard & Poor’s, both with
““Stable” outlook.
Early Arrears e
performing loans
servicing
The management of performing loans or loans past due by less than 90 days,
not yet classified as non-performing, on behalf of third parties
Ancillary
Services
These include: (1) Due Diligence: services for the collection and organisation
of information in data room environments and advisory services for the
analysis and assessment of loan portfolios for the preparation of business
plans for Collection and Recovery activities; (2) Master Servicing and
Structuring: administrative, accounting, cash management and reporting
services in support of receivables securitisation vehicles (2) Master
Servicing and Structuring, i.e., administrative, accounting, cash management
and reporting services in support of the securitisation of loans; structuring
services for securitisation transactions, as well as performing the role of
“authorised entity” in securitisation transactions, and (3) Master Legal, i.e.,
activities relating to the management of legal proceedings at all levels in
relation to loans, mainly non-performing receivables, managed by doValue
on behalf of third parties
European banks are currently enjoying the benefits of exceptionally high interest rates, which
have led to a notable increase in net interest margins. Despite the ongoing deterioration in
the macroeconomic environment and high interest rates putting pressures on households
and SMEs, the cost of risk for European banks has surprisingly remained at historical lows.
This scenario, coupled with a low NPE ratio resulting from an extensive de-risking process
throughout Southern Europe carried out in the previous years, has created a challenging
landscape for debt servicers and purchasers, marked by a shrinking pipeline for primary
deals.
Despite these challenges, the economic forecast for Europe remains cautious, with modest
GDP growth, a looming commercial real estate crisis, and a rise in bankruptcies, particularly
among SMEs. The Bank of Italy anticipates a decline in credit quality over the next two
years. In this context, the governor of the Bank of Italy has emphasized the crucial role of
credit servicers in maintaining a robust banking and economic system. Meanwhile, large
Spanish banks are managing €71 billion in non-performing loans (NPLs) on their balance
sheets, a 2.3% year-over-year increase compared to 2022. Greece is experiencing strong
positive GDP growth, yet banks are still in the midst of their de-risking processes.
In light of this situation, doValue estimates the pipeline of potential servicing mandates for
next 18 months across Southern Europe at approximately €40 billion, including secondary
transactions. However, any further delays in anticipated primary transactions could
challenge a return to growth in 2024. To address this, the company has adopted a flexible
cost structure and plans to make additional adjustments to safeguard profitability and cash
generation.
More broadly, doValue’s activities are supported by a substantial and contractual long-term
GBV and are buoyed by external, favourable medium to long-term trends. These include the
enforcement of strict regulations by banks for loan recognition (IFRS 9, Calendar Provisioning,
Basel IV), which encourage a proactive approach to balance sheet management.
9
DIRECTORS’ REPORT
Macroeconomic environment
The tables below show the main economic and financial data of doValue extracted from the
related management statements, which are subsequently represented in the section of the
doValue Results as at December 31, 2023.
Key data of the income statement 12/31/2023 12/31/2022 Change € Change %
Gross Revenues 141,129 167,705 (26,576) (16)%
Net Revenues 121,037 149,444 (28,407) (19)%
Operating expenses (95,512) (106,805) 11,293 (11)%
EBITDA 25,525 42,639 (17,114) (40)%
EBITDA Margin 18% 25% (7)% (29)%
Non-recurring items included in EBITDA (1,198) (2,563) 1,365 (53)%
EBITDA excluding non-recurring items 26,723 45,202 (18,479) (41)%
EBITDA Margin excluding non-recurring items 19% 27% (8)% (30)%
EBT 4,709 24,660 (19,951) (81)%
EBT Margin 3% 15% (11)% (77)%
Profit (loss) for the period (2,936) 19,471 (22,407) (115)%
Profit (loss) for the period excluding non-recurring items 5,366 24,436 (19,070) (78)%
(€/000)
Key data of the balance sheet 12/31/2023 12/31/2022 Change € Change %
Cash and liquid securities 57,326 114,358 (57,032) (50)%
Equity investments 400,939 374,429 26,510 7%
Property, plant and equipment 13,576 17,969 (4,393) (24)%
Intangible assets 17,439 17,907 (468) (3)%
Financial assets 198,720 198,475 245 0%
Trade receivables 80,191 84,066 (3,875) (5)%
Tax assets 59,716 65,661 (5,945) (9)%
Financial liabilities 635,297 626,768 8,529 1%
Trade payables 29,977 20,459 9,518 47%
Tax Liabilities 3,303 2,266 1,037 46%
Other liabilities 17,707 19,712 (2,005) (10)%
Provisions for risks and charges 12,503 13,816 (1,313) (10)%
Net Equity 129,214 190,190 (60,976) (32)%
(€/000)
10
Main Highlights
1
11
In order to facilitate an understanding of the performance and financial position, a number of
alternative performance measures (“Key Performance Indicators” or “KPIs”) have been selected
by the Company and are summarised in the table below.
KPIs 12/31/2023 12/31/2022
Gross Book Value (EoP) - Italy 66,016,036 70,329,055
Collections of the period - Italy 1,398,098 1,634,745
LTM Collections / GBV EoP - Italy - Stock 2.5% 2.4%
Staff FTE / Total FTE 30.1% 31.3%
EBITDA 25,525 42,639
Non-recurring items (NRIs) included in EBITDA (1,198) (2,563)
EBITDA excluding non-recurring items 26,723 45,202
EBITDA Margin 18.1% 25.4%
EBITDA Margin excluding non-recurring items 19.0% 27.0%
Profit (loss) for the period (2,936) 19,471
Non-recurring items included in Profit (loss) for the period (8,302) (4,965)
Profit (loss) for the period excluding non-recurring items 5,366 24,436
Capex 5,312 8,233
EBITDA - Capex 20,213 34,406
Net Working Capital 50,214 63,607
Net Financial Position (357,102) (305,698)
(€/000)
DIRECTORS’ REPORT
12
KEY
Gross Book Value EoP: indicates the book value of the loans under management at the end of the
reference period for the entire scope of Italy, gross of any potential write-downs due to expected loan
losses.
Collections for the period: used to calculate fees for the purpose of determining revenues from the
servicing business, they illustrate the ability to extract value from the portfolio under management.
LTM collections Stock/GBV (Gross Book Value) EoP Stock: the ratio between total gross LTM
collections on the Stock portfolio under management at the start of the reference year and the end-
period GBV of that portfolio.
Staff FTE/Total FTE: the ratio between the number of employees who perform support activities
and the total number of full-time employees. The indicator illustrates the efficiency of the operating
structure and the focus on management activities.
EBITDA and Profit (loss) for the period: together with other relative profitability indicators, they
highlight changes in operating performance and provide useful information regarding the Company’s
financial performance. These data are calculated at the end of the period.
Non-recurring items: items generated in extraordinary operations such as corporate restructuring,
acquisitions or disposals of entities, start-up of new businesses or entry into new markets.
EBITDA and Profit (loss) for the period excluding non-recurring items: are defined as EBITDA and Profit
(loss) for the period attributable to core operations, excluding all items connected with extraordinary
operations such as corporate restructuring, acquisitions or disposals of entities, start-up of new
businesses or entry into new markets.
EBITDA Margin: obtained by dividing EBITDA by Gross Revenues.
EBITDA Margin excluding non-recurring items: obtained by dividing EBITDA excluding non-recurring
items by Gross revenues.
Earnings per share: calculated as the ratio between net profit for the period and the number of
outstanding shares at the end of the period.
Earnings per share excluding non-recurring items: the calculation is the same as that for earnings
per share, but the numerator differs from net profit for the period excluding non-recurring items net
of the associated tax effects.
Capex: investments in property, plant, equipment and intangibles.
EBITDA – Capex: calculated as EBITDA net of investments in property, plant and equipment and
intangibles. Together with other relative profitability indicators, it highlights changes in operating
performance and provides an indication on the Company’s ability to generate cash.
Net Working Capital: this is represented by receivables for fees invoiced and accruing, net of payables
to suppliers for invoices accounted for and falling due in the period.
Net Financial Position: this is calculated as the sum of cash, cash equivalents and highly liquid
securities, net of amounts due to banks and bonds issued.
12
13
Results as
at December 31, 2023
The operating results for the year are reported on the following pages, together with details on
the performance of the portfolio under management.
At the end of this Directors’ Report, we have included a reconciliation between the management
income statement reported below and the income statement provided in the financial statements
section.
DIRECTORS’ REPORT
PERFORMANCE
Condensed Income Statement 12/31/2023 12/31/2022 Change € Change %
Servicing Revenues: 107,882 138,015 (30,133) (22)%
o/w: NPE revenues 107,882 138,015 (30,133) (22)%
Co-investment revenues 1,274 1,507 (233) (15)%
Ancillary and other revenues 31,973 28,183 3,790 13%
Gross revenues 141,129 167,705 (26,576) (16)%
NPE Outsourcing fees (6,535) (7,629) 1,094 (14)%
Ancillary Outsourcing fees (13,557) (10,632) (2,925) 28%
Net revenues 121,037 149,444 (28,407) (19)%
Staff expenses (74,277) (83,606) 9,329 (11)%
Administrative expenses (21,235) (23,199) 1,964 (8)%
Total "o.w. IT" (7,943) (9,733) 1,790 (18)%
Total "o.w. Real Estate" (1,315) (1,634) 319 (20)%
Total "o.w. SG&A" (11,977) (11,832) (145) 1%
Operating expenses (95,512) (106,805) 11,293 (11)%
EBITDA 25,525 42,639 (17,114) (40)%
EBITDA margin 18% 25% (7)% (29)%
Non-recurring items included in EBITDA (1,198) (2,563) 1,365 (53)%
EBITDA excluding non-recurring items 26,723 45,202 (18,479) (41)%
EBITDA margin excluding non-recurring items 19% 27% (8)% (30)%
Net write-downs on property, plant, equipment and
intangibles
(13,278) (11,777) (1,501) 13%
Net provisions for risks and charges (5,520) (4,925) (595) 12%
Net write-downs of loans 139 484 (345) (71)%
EBIT 6,866 26,421 (19,555) (74)%
Net income (loss) on financial assets and liabilities
measured at fair value
(2,809) (915) (1,894) n.s.
Financial interest and commissions 652 (846) 1,498 n.s.
EBT 4,709 24,660 (19,951) (81)%
Non-recurring items included in EBT (8,302) (6,722) (1,580) 24%
EBT excluding non-recurring items
13,011 31,382 (18,371) (59)%
Income tax for the period (7,645) (5,189) (2,456) 47%
Profit (Loss) for the period (2,936) 19,471 (22,407) (115)%
Non-recurring items included in Profit (loss) for the
period
(8,302) (4,965) (3,337) 67%
Profit (loss) for the period excluding non-recurring items 5,366 24,436 (19,070) (78)%
(€/000)
14
77+50+11+6+8+17+1+D
11+2+26+11+34+6+20+D
15
Portfolio under management
At the end of 2023, the portfolio under management (GBV) of doValue amounted to €66.0 billion,
down by approximately 6% compared to the figure as at December 31, 2022 of €70.3 billion.
The main positive changes in 2023 are shown below:
• new mandates from existing clients for €0.8 billion, from flow contracts with UniCredit,
• new mandates for a total of €0.1 billion referring to a portfolio managed by AMCO.
A reduction of GBV was recorded in the period, among other elements, due to transfers by a
customer amounting to €0.3 billion.
The following charts show the composition of the portfolio under management and the
collections for the period.
70.3
0.8
0.1
(1.4)
(3.5)
(0.3)
66.0
GBV
Dec 2022
Forward Flows New
Mandates
Collections
/ Sales
Net
write-off
Disposal
GBV
Dec 2023
GBV breakdown by Client
Collections breakdown by Client
Intesa
1%
UniCredit
2%
Other Italy
26%
Italian Recovery
Fund
11%
Fortress
34%
Prisma
6%
Fino
20%
In 2023 the proceeds of doValue S.p.A. amounted to €1.4 billion (€1.6 billion in 2022).
UniCredit
7%
Intesa
1%
Fino
17%
Prisma
8%
Fortress
6%
Italian Recovery
Fund
11%
Other Italy
50%
DIRECTORS’ REPORT
Performance
In 2023, the European economy showed signs of recovery after the pandemic, supported by
stimulus policies and public investments, such as the one in Italy relating to the National
Recovery and Resilience Plan. However, challenges such as high inflation, financial market
volatility and uncertainty linked to the ECB’s monetary policy persist. The transition to a green
and digital economy continues to be a focal point, while trade and geopolitical tensions affect
the economic landscape.
In this complex framework, doValue recorded gross revenues of €141.1 million, a decrease of
16% compared to €167.7 million in 2022.
Revenues from Servicing of NPE assets, equal to €107.9 million, show a decrease of 22%
compared to 2022. Regarding NPLs, it should be noted that collections for the last 12 months as
a ratio to end-of-period (EoP) gross book value (GBV), given by the indicator “LTM collections/
GBV (EoP)”, came to 2.5%, in line with the result in 2022. The ratio assumes the same value,
equal to 2.5% also excluding the new mandates under management, (“LTM Stock/GBV Stock
(EoP) Collections”).
Co-investment revenues include the €1.3 million contribution (€1.5 million in 2022) from revenues
on the ABS securities for the two securitisations Romeo SPV and Mercuzio Securitisation in
which doValue holds 5%.
The contribution of ancillary and other revenues was more significant, amounting to €32.0
million (€28.2 million in December 2022), mainly originating from income from data processing
and provision services and other services connected with servicing activities, such as due
diligence and legal services.
These revenues represent 23% of the total gross revenues for the year and show an increase of
13% compared to the previous year.
16
12/31/2023 12/31/2022 Change € Change %
NPE revenues 107,882 138,015 (30,133) (22)%
Co-investment revenues 1,274 1,507 (233) (15)%
Ancillary and other revenues 31,973 28,183 3,790 13%
Gross revenues 141,129 167,705 (26,576) (16)%
NPE Outsourcing fees (6,535) (7,629) 1,094 (14)%
Ancillary Outsourcing fees (13,557) (10,632) (2,925) 28%
Net revenues 121,037 149,444 (28,407) (19)%
(€/000)
Net revenues decreased by around 19% to €121.0 million, compared to €149.4 million in the
previous year.
NPE outsourcing fees fell by 14% to €6.5 million (€7.6 million in 2022), with a decrease in all
perimeters as a result of lower collections through the external network.
Ancillary outsourcing fees amounted to €13.6 million compared to €10.6 million in 2022, an
increase of 28%, which was more than proportional to the increase in related revenues, thus
showing a lower overall margin.
17
Operating expenses of €95.5 million, including €1.2 million of non-recurring items, showed an
overall decrease of 11% compared to the same period in 2022, when they stood at €106.8 million.
More specifically, of the €11.3 million decrease, €9.3 million is attributable to staff expenses and
€2.0 million to administrative expenses.
Staff expenses amounted to €74.3 million, therefore recording a decrease of around 11%
compared to €83.6 million in the previous year. During 2023, the employee efficiency programme
also included in the approved Business Plan continued.
As regards administrative expenses, these amounted to €21.2 million (compared to €23.2
million in 2022) with a decrease of approximately 9% due to the combined effect of lower IT
costs (€1.8 million) and lower costs relating to Real Estate (€0.3 million) and higher general and
administrative costs (€0.1 million).
12/31/2023 12/31/2022 Change € Change %
Staff expenses (74,277) (83,606) 9,329 (11)%
Administrative expenses (21,235) (23,199) 1,964 (9)%
o.w. IT (7,943) (9,733) 1,790 (18)%
o.w. Real Estate (1,315) (1,634) 319 (20)%
o.w. SG&A (11,977) (11,832) (145) 1%
Operating expenses (95,512) (106,805) 11,293 (11)%
EBITDA 25,525 42,639 (17,114) (40)%
o.w: Non-recurring items included in EBITDA
(1,198) (2,563) 1,365 (53)%
o.w: EBITDA excluding non-recurring items
26,723 45,202 (18,479) (41)%
(€/000)
In line with previous reporting periods, operating costs for the year include a number of non-
recurring items (NRIs), which are shown as adjustments to EBITDA to facilitate comparison
between periods and the identification of structural profitability for doValue.
These non-recurring items amounted to €1.2 million (€2.6 million in 2022) and mainly refer to
consultancy costs related to extraordinary transactions aimed at business development.
EBITDA excluding non-recurring items amounted to €26.7 million (€45.2 million in December
2022) with a margin of 19% on gross revenues, down from 27% in the comparative period.
Including non-recurring expenses, EBITDA was €25.5 million, down by 40% compared to €42.6
million reported in 2022.
The Company’s EBIT stood at €6.9 million, compared to €26.4 million in the comparative period.
EBT amounted to €4.7 million compared to €24.7 million recorded in the previous year.
DIRECTORS’ REPORT
12/31/2023 12/31/2022 Change € Change %
EBITDA 25,525 42,639 (17,114) (40)%
Net write-downs on property, plant, equipment and
intangibles
(13,278) (11,777) (1,501) 13%
Net provisions for risks and charges (5,520) (4,925) (595) 12%
Net write-downs of loans 139 484 (345) (71)%
EBIT 6,866 26,421 (19,555) (74)%
Net income (loss) on financial assets and liabilities mea-
sured at fair value
(2,809) (915) (1,894) n.s.
Net financial interest and commissions 652 (846) 1,498 n.s.
EBT 4,709 24,660 (19,951) (81)%
(€/000)
18
This item includes the financial costs related to the two bond issues, the delta fair value related
to the notes of the Cairo securitisations, the Romeo and Mercuzio SPV securities and Mexico
and other minor items related to the accounting under IFRS 16.
In addition to the non-recurring items within the EBITDA (€1.2 million), EBT includes additional
non-recurring items for a total of €8.3 million mainly relating to costs for early retirement
incentives (€4.1 million) and items linked to an arbitration in progress for the tax claim in Spain
(€2.9 million).
Net write-downs on property, plant and equipment and intangibles amounted to €13.3 million,
compared to €11.8 million recorded in the previous year.
The total balance includes the amortisation of rights of use deriving from the accounting of
lease agreements pursuant to IFRS 16 for a total of €5.7 million (€5.6 million in 2022). The
remainder of amortisation primarily concerns software licenses for technology investments
made by the Company during the period and aimed at upgrading the IT platform.
Net provisions for risks and charges amounted to €5.2 million, compared to €4.9 million in
2022, and were mainly related to provisions for early retirement incentives, legal disputes and
prudential provisions for receivables.
Net income (loss) on financial assets and liabilities measured at fair value recorded a negative
result of €2.8 million and recorded an increase compared to the previous period of around €1.9
million, when the item was €0.9 million. This change is mainly attributable to the write-down
of the notes of the Cairo securitisations and the units of the Italian Recovery Fund (formerly
Atlante II) investment fund.
19
Net financial interest and commissions, positive for €0.6 million, show a positive change of
€1.5 million compared to -€0.8 million in 2022. Therefore, the item in question reflects the cost
related to the onerousness of the two bond issues serving the process of acquisitions carried
out in Spain and Greece as implementation of the Group’s internationalisation strategy and the
dividends collected from subsidiaries (up by €0.8 million compared to 2022) and the interest
income relating to current accounts and term deposits.
12/31/2023 12/31/2022 Change € Change %
EBT 4,709 24,660 (19,951) (81)%
Income tax for the period (7,645) (5,189) (2,456) 47%
Profit (Loss) for the period (2,936) 19,471 (22,407) (115)%
Non-recurring items included in Profit (loss) (8,302) (4,965) (3,337) 67%
Profit (loss) for the period excluding non-recurring items 5,366 24,436 (19,070) (78)%
(€/000)
Income tax for the period is quantified at €7.6 million compared to €5.2 million in 2022, by
virtue of the negative effect of the change in deferred tax assets. Income taxes also include the
accrued portion of the DTA charge of €1.6 million.
Profit (loss) for the period excluding non-recurring items amounted to €5.4 million, compared
to €24.4 million in 2022. Including non-recurring items, Profit (Loss) for the period was equal to
-€2.9 million, compared to €19.5 million in the previous year.
SEGMENT REPORTING
For Segment Reporting, reference should be made to the representation in the Consolidated
Financial Statements of the doValue Group as at December 31, 2023, as the Group uses the
Region as a dimension of analysis; for these Corporate Financial Statements, the representation
corresponds to that reported in the Consolidated Financial Statements for Italy.
DIRECTORS’ REPORT
Financial Position
The balance sheet figures have been reclassified from a management perspective, in line with
the representation of the reclassified income statement and the net financial position of the
Company.
At the end of this Directors’ Report, in accordance with the same presentation approach for the
income statement, we have included a reconciliation between the management balance sheet
reported below and the schedule provided in the financial statement tables.
Condensed Balance Sheet 12/31/2023 12/31/2022 Change € Change %
Cash and liquid securities 57,326 114,358 (57,032) (50)%
Financial assets 198,720 198,475 245 0%
Equity investments 400,939 374,429 26,510 7%
Property, plant and equipment 13,576 17,969 (4,393) (24)%
Intangible assets 17,439 17,907 (468) (3)%
Tax assets 59,716 65,661 (5,945) (9)%
Trade receivables 80,191 84,066 (3,875) (5)%
Assets held for sale 10 10 - n.s.
Other assets 4,611 4,900 (289) (6)%
Total Assets 832,528 877,775 (45,247) (5)%
Financial liabilities: due to banks/bondholders 562,628 564,084 (1,456) (0)%
Other financial liabilities 72,669 62,684 9,985 16%
Trade payables 29,977 20,459 9,518 47%
Tax Liabilities 3,303 2,266 1,037 46%
Employee Termination Benefits 4,527 4,564 (37) (1)%
Provision for risks and charges 12,503 13,816 (1,313) (10)%
Other liabilities 17,707 19,712 (2,005) (10)%
Total Liabilities 703,314 687,585 15,729 2%
Share capital 41,280 41,280 - n.s.
Reserves 96,965 133,771 (36,806) (28)%
Treasury shares (6,095) (4,332) (1,763) 41%
Profit (loss) for the period (2,936) 19,471 (22,407) (115)%
Net Equity 129,214 190,190 (60,976) (32)%
Total Liabilities and Net Equity 832,528 877,775 (45,247) (5)%
(€/000)
INTRODUCTION
20
The item Cash and liquid securities includes available liquidity in current accounts. Compared to
December 31, 2022, there was a decrease of €57.0 million compared to the end of the previous
year, as a result of the financial dynamics of the period described below in the paragraph relating
to the Net Financial Position.
Financial assets showed a balance of €198.7 million, an increase of €0.2 million compared to
the value recorded as at December 31, 2022, and amounting to €198.5 million.
The item is broken down in the following table.
(€/000)
Financial assets 12/31/2023 12/31/2022 Change € Change %
At fair value through profit or loss 37,037 42,126 (5,089) (12)%
Debt securities 16,484 18,145 (1,661) (9)%
CIUs 20,499 23,628 (3,129) (13)%
Non-hedging derivatives 54 353 (299) (85)%
At fair value through OCI 8,165 10,171 (2,006) (20)%
Equity instruments 8,165 10,171 (2,006) (20)%
At amortized cost 153,518 146,178 7,340 5%
Loan assets on intercompany current account 82,061 33,935 48,126 142%
L&R with customers 71,457 112,243 (40,786) (36)%
Total 198,720 198,475 245 0%
The component of financial assets “at fair value through profit or loss” recorded an overall
decrease of €5.1 million, mainly due to a decrease in the debt securities component caused
by valuation effects (€1.6 million), and a decrease of €3.1 million in CIU units related to the
restricted closed-end alternative securities investment fund denominated Italian Recovery
Fund (formerly Atlante II), of which €2.2 million was due to the cancellation and distribution of
units and €0.9 million to the related negative fair value difference.
Non-hedging derivatives include the value of one option related to the purchase of additional
interests in the company BidX1; the reduction of €0.3 million originates from the fair value
differential of this option.
The category “at fair value through other comprehensive income”, which includes minority
interests in the Brazilian fintech company QueroQuitar S.A. (11.6%) and in the Irish proptech
company BidX1 (17.7%), shows a total decrease of €2.0 million exclusively attributable to the
fair value differential of the latter.
21
DIRECTORS’ REPORT
The component of financial assets “At amortised cost” recorded an increase of €7.3 million
mainly due to the increase in receivables from doValue Spain and doValue Portugal deriving
from cash pooling transactions, partially offset by repayments of loans received during the year,
disbursed to doValue Spain and doValue Greece.
Equity investments amounted to €400.9 million and were essentially affected in the period by:
• an increase in the equity investment in doValue Spain Servicing of €21.5 million for the
purchase of the residual 15% minority interest following the finalisation of the put option
exercise on October 24, 2023;
• an increase of €5.1 million in the value of the equity investment in doValue Greece due
to the combined effect of an increase in the fair value of the Earn-out liability linked to
the company’s acquisition price (€5.4 million) and the decrease due to the absence of
previously capitalised costs (€0.3 million);
• a decrease of €0.1 million in the value of the equity investments in doValue Spain Servicing
due to the release of significant provisions made in previous years with respect to the
accrued remuneration in the form of allocation of doValue shares, allocated to certain
categories of managers of this investee company, as required by the remuneration policy.
Property, plant and equipment, equal to €13.6 million, decreased by €4.4 million compared to
December 31, 2022, mainly due to the combined effect of the accrued portion of depreciation
(€6.3 million) and the acquisition or extension of rights of use capitalised pursuant to IFRS 16
(€1.1 million).
Intangible assets decreased from €17.9 million to €17.4 million, a decrease of €0.5 million
essentially for the combined effect due to both the capitalisation of costs connected with IT
and the accrual of a portion pertaining to amortisation.
The following is a breakdown of Intangible assets:
Intangible assets 12/31/2023 12/31/2022 Change € Change %
Software 15,151 13,577 1,574 12%
Brands 52 56 (4) (7)%
Assets under development and payments on account 2,236 4,274 (2,038) (48)%
Total 17,439 17,907 (468) (3)%
(€/000)
The tax assets detailed below show a balance of €59.7 million as at December 31, 2023,
compared to €65.7 million as at December 31, 2022. The reduction of €5.9 million mainly refers
to releases and write-downs of “deferred tax assets”, €5.2 million of which derives from the
derecognition of DTAs.
22
Tax assets
12/31/2023 12/31/2022 Change € Change %
Current tax assets
4,158 4,025 133 3%
Paid in advance - 4,025 (4,025) (100)%
Tax credits 4,158 - 4,158 n.s.
Deferred tax assets 53,730 59,975 (6,245) (10)%
Write-down on loans 40,202 49,330 (9,128) (19)%
Tax losses carried forward in the future 13,199 4,611 8,588 n.s.
Property, plants and equipment / Intangible assets - 326 (326) (100)%
Other assets / liabilities - 1,886 (1,886) (100)%
Provisions 329 3,822 (3,493) (91)%
Other tax receivables 1,828 1,661 167 10%
Total 59,716 65,661 (5,945) (9)%
(€/000)
The breakdown of tax liabilities is also shown below, highlighting an increase compared to
the 2022 balances (€1.0 million), referring to higher receivables included in the item “Other tax
receivables”.
Tax liabilities 12/31/2023 12/31/2022 Change € Change %
Deferred tax liabilities 20 20 - n.s.
Other tax payables 3,283 2,246 1,037 46%
Total 3,303 2,266 1,037 46%
(€/000)
As at December 31, 2023, financial liabilities - payables to banks/bondholders decreased from
€564.1 million to €562.6 million, a decrease of €1.5 million, mainly linked to the combined effect
of the €5.0 million reduction deriving from two outstanding bonds buy-back transactions which
were concluded by repurchasing part of the own debt on the market below par so as to reduce
the total amount of liabilities to a further amount than compared to the financial disbursement
required, with the consequent recognition of income of €0.5 million and the increase in the
amortised cost of the bonds issued.
As at December 31, 2023, the residual debt at amortised cost for the two bonds issued is as
follows:
- 2020-2025 bond with a nominal value of €264.0 million, interest rate of 5.0%: €265.1 million;
- 2021-2026 bond with a nominal value of €296.0 million, interest rate of 3.4%: €297.4 million.
23
DIRECTORS’ REPORT
Other liabilities went from €19.7 million to €17.7 million with a decrease of €2.0 million due to
the combined effect of various components, as summarised in the table below.
Provisions for risks and charges 12/31/2023 12/31/2022 Change € Change %
Legal disputes 5,424 4,621 803 17%
Staff expenses 599 514 85 17%
Other 6,480 8,681 (2,201) (25)%
Total 12,503 13,816 (1,313) (10)%
(€/000)
24
Other financial liabilities 12/31/2023 12/31/2022 Change € Change %
Lease liabilities 13,062 16,443 (3,381) (21)%
Earn-out 54,668 44,648 10,020 22%
Other financial liabilities 4,939 1,593 3,346 n.s.
Total 72,669 62,684 9,985 16%
(€/000)
Other financial liabilities at the end of 2023 are detailed below:
“Lease liabilities” include the discounted value of future lease payments, in accordance with the
provisions of IFRS 16.
The liability for the “Earn-out” refers (i) to the doValue Spain acquisition for €22.2 million (€17.5
million as at December 31, 2022) and relates to a portion of the acquisition price, supplemented
by the interest component, and (ii) to the acquisition of doValue Greece for €32.5 million (€27.2
as at December 31, 2022) linked to the achievement of some EBITDA targets within a 10-year
time frame and whose possible payments will be due from 2024.
“Other financial liabilities” include payables for cash pooling to the subsidiaries doData, doNext
and doValue Cyprus.
Provisions for risks and charges go from a balance at the end of 2022 of €13.8 million to €12.5
million as at December 31, 2023. The reduction of €1.3 million is due to the combined effect of
new allocations, uses and releases on both in-court and out-of-court disputes settled during
the period.
Other liabilities 12/31/2023 12/31/2022 Change € Change %
Amounts due to personnel 11,899 12,512 (613) (5)%