[PPT] - Gruppo MutuiOnline T hird Qua rte r 2007 Re sults 12 th No ve mb e PowerPoint Presentation

SLIDE 1

Gruppo MutuiOnline T hird Qua rte r 2007 Re sults 12th No ve mb e r 2007

SLIDE 2

2

Pr e se nte r s today

Gro up Cha irma n a nd He a d o f Bro king Divisio n
F
unde r a nd ke y sha re ho lde r (15.70% indire c tly thro ug h Alma Ve nture s SA)
Ba c kg ro und in c o nsulting (Mc K

inse y) a nd b a nking (Mo rg a n Sta nle y)

De g re e s in E

le c tric a l E ng ine e ring a nd Co mpute r Sc ie nc e , MBA fro m MI T

Gro up Cha irma n a nd He a d o f Bro king Divisio n
F
unde r a nd ke y sha re ho lde r (15.70% indire c tly thro ug h Alma Ve nture s SA)
Ba c kg ro und in c o nsulting (Mc K

inse y) a nd b a nking (Mo rg a n Sta nle y)

De g re e s in E

le c tric a l E ng ine e ring a nd Co mpute r Sc ie nc e , MBA fro m MI T

Gro up CE

O a nd He a d o f BPO Divisio n

F
unde r a nd ke y sha re ho lde r (15.70% indire c tly thro ug h Alma Ve nture s SA)
Ba c kg ro und in c o nsulting (Bo o z Alle n & Ha milto n) in I

ta ly a nd USA

De g re e in I

ndustria l E ng ine e ring , MBA fro m MI T

Gro up CE

O a nd He a d o f BPO Divisio n

F
unde r a nd ke y sha re ho lde r (15.70% indire c tly thro ug h Alma Ve nture s SA)
Ba c kg ro und in c o nsulting (Bo o z Alle n & Ha milto n) in I

ta ly a nd USA

De g re e in I

ndustria l E ng ine e ring , MBA fro m MI T

Me mb e r o f Gro up E

xe c utive Co mmitte e , He a d o f Busine ss & Co rpo ra te De ve lo pme nt, I nve sto r Re la tio ns

Qua lifie d sha re ho lde r (4.32%)
Ba c kg ro und in c o nsulting (Ba in & Co mpa ny), b a nking (Go ldma n Sa c hs) a nd

ve nture c a pita l (Ne t Pa rtne rs)

De g re e fro m Bo c c o ni Unive rsity, MBA fro m I

NSE AD

Me mb e r o f Gro up E

xe c utive Co mmitte e , He a d o f Busine ss & Co rpo ra te De ve lo pme nt, I nve sto r Re la tio ns

Qua lifie d sha re ho lde r (4.32%)
Ba c kg ro und in c o nsulting (Ba in & Co mpa ny), b a nking (Go ldma n Sa c hs) a nd

ve nture c a pita l (Ne t Pa rtne rs)

De g re e fro m Bo c c o ni Unive rsity, MBA fro m I

NSE AD

Mar c o Pe sc ar mona Ale ssandr

F

r ac assi Ste fano Rossini

SLIDE 3

3

Busine ss por tfolio

Br

king

2006: Re v. €12.7m E BI T €5.7m H1 2007: Re v. €9.0m E BI T

(a ) €5.1m

Br

king

2006: Re v. €12.7m E BI T €5.7m H1 2007: Re v. €9.0m E BI T

(a ) €5.1m

BPO

2006: Re v. €9.1m E BI T €2.8m H1 2007: Re v. €6.7m E BI T

(a ) €2.0m

BPO

2006: Re v. €9.1m E BI T €2.8m H1 2007: Re v. €6.7m E BI T

(a ) €2.0m

BUSINE SS L INE BUSINE SS L INE DIVISION DIVISION BRAND/ SE RVICE BRAND/ SE RVICE

Multi-br and br

king of

mor tgage s thr

ugh

Inte r ne t and te le phone Multi-br and br

king of

mor tgage s thr

ugh

Inte r ne t and te le phone Multi-br and br

king of

c onsume r loans thr

ugh

Inte r ne t Multi-br and br

king of

c onsume r loans thr

ugh

Inte r ne t Multi-br and br

king of

mor tgage s thr

ugh

physic al ne twor k Multi-br and br

king of

mor tgage s thr

ugh

physic al ne twor k R e mote mor tgage pac kaging se r vic e s R e mote mor tgage pac kaging se r vic e s Mor tga ge unde r wr iting and c losing se r vic e s Mor tga ge unde r wr iting and c losing se r vic e s E mploye e loan unde r wr iting and c losing se r vic e s E mploye e loan unde r wr iting and c losing se r vic e s

SIZE / RE VE NUE S 2006 H1 2007 SIZE / RE VE NUE S 2006 H1 2007 €9.7m €6.5m €2.3m €1.6m €0.7m €0.9m €4.2m €2.7m €3.4m €2.3m €1.5m €1.7m

No te : (a ) E xc lude s o ne o ff c o sts re la te d to re struc turing o f the Gro up a nd the I PO o f the c o mpa ny a mo unting to €816,000

SLIDE 4

4

Shar e holding str uc tur e

Shar e holding struc ture as of 1st Oc tobe r 2007*

Alma Venture s SA**; 31,40% Ne stor 2000 Sprl; 11,37% Merc a to ; 25,63% Tre a sury Sha re s; 1,01% Ro ssini Stefa no; 4,32% Ta la ris Ca pita l Pa rtne r L P; 2,73% GL G Pa rtne rs L P; 2,46% Ca pita l Re sea rc h & Ma na g e me nt Co mpa ny; 8,00% Jupite r Ve nture s SA; 5,47% Pa rvus Asset Ve ntures; 7,61%

* S hare c apital o wne rships c o mmunic ate d to the c o mpany by re le vant inve sto rs ac c o rding to CONS OB re gulatio ns; inc lude s all inve sto rs abo ve 2% o wne rship thre sho ld ** T he share c apital o f Alma Ve nture s S .A. is o wne d 50% by Gude rian S .r.l. and 50% by Caspe r S .r.l.; Gude rian S .r.l. is 100% o wne d by Marc o Pe sc armo na and Caspe r S .r.l. is 100% o wne d by Ale ssandro F rac assi.

SLIDE 5

5 2 4 6 8 10 Q3 06 Q3 07

Q3 highlights

Re ve nue s (€m) E BIT (€m)

Y-o -Y +63% 1 2 3 4 5 Q 3 06 Q 3 07 Y-o -Y +91%

5.1 8.3

2.0 3.9

Ne t Inc ome (€m)

1 2 3 Q 3 06 Q 3 07 Y-o -Y +72% 1.2 2.1 E BIT margin

40% 46%

E BIT margin

40% 46%

NI mar gin

24% 25%

NI mar gin

24% 25%

SLIDE 6

6 4 8 12 16 20 24 28 9m 06 9m 07

9m highlights

Re ve nue s (€m) E BIT (€m)

Y-o -Y +56% 2 4 6 8 10 12 9m 06 9m 07 (a ) Y-o -Y +65%

15.4 24.0

6.7 11.0

Ne t Inc ome (€m)

2 4 6 8 9m 06 9m 07 Y-o -Y +42% 4.0 5.7 E BIT margin

43% 46%

E BIT margin

43% 46%

NI mar gin

26% 24%

NI mar gin

26% 24%

No te : (a ) E xc lude s o ne o ff c o sts re la te d to re struc turing o f the Gro up a nd the I PO o f the c o mpa ny a mo unting to €816,000

SLIDE 7

7 4 8 12 16 20 24 28 9m 06 9m 07

Se gme nt r e por ting

Re ve nue s (€m) E BIT (€m)

Y-o -Y +56%

No te : (a ) E xc lude s o ne o ff c o sts re la te d to re struc turing o f the Gro up a nd the I PO o f the c o mpa ny a mo unting to €816,000

Y-o -Y +60% Y-o -Y +51% BPO Divisio n Bro king Divisio n 2 4 6 8 9m 06 9m 07(a ) Y-o -Y +65% Y-o -Y +102% Y-o -Y +5% BPO Divisio n Bro king Divisio n

9m 2006 2006 9m 2007(a ) 9m 2006 2006 9m 2007(a )

Bro king Divisio n 47% 45% 60% BPO Divisio n 38% 31% 26%

T

tal

43% 39% 46%

Bro king Divisio n 47% 45% 60% BPO Divisio n 38% 31% 26%

T

tal

43% 39% 46%

E BIT mar gin 15.4 8.8 6.6 24.0 14.0 10.0

4.1 2.6 8.4 2.6

6.7 11.0

SLIDE 8

8

Br

king Division busine ss update

Br

king

Division Br

king

Division

I

nc re a se o f mo rtg a g e a nd pe rso na l lo a n a pplic a tio ns in Q3 2007 vs. Q3 2006

Co ntinuo us stre ng the ning o f the Gro up in the ma rke t fo r re ta il c re dit pro duc t

distrib utio n tha nks to the g ro wing po pula rity o f re mo te distrib utio n c ha nne ls

I

n pa rtic ula r, inc re a sing de ma nd fo r mo rtg a g e re fina nc ing a s a dire c t c o nse q ue nc e o f the le g isla tive c ha ng e s intro duc e d b y the so -c a lle d “De c re to Be rsa ni”

Re mo rtg a g e a pplic a tio ns ha ve a nywa y lo we r c lo sing ra te s e xpe c ta tio ns
Alto g e the r, the g ro wth a nd pro fita b ility o utlo o k fo r 2007 is ve ry po sitive
I

nc re a se o f mo rtg a g e a nd pe rso na l lo a n a pplic a tio ns in Q3 2007 vs. Q3 2006

Co ntinuo us stre ng the ning o f the Gro up in the ma rke t fo r re ta il c re dit pro duc t

distrib utio n tha nks to the g ro wing po pula rity o f re mo te distrib utio n c ha nne ls

I

n pa rtic ula r, inc re a sing de ma nd fo r mo rtg a g e re fina nc ing a s a dire c t c o nse q ue nc e o f the le g isla tive c ha ng e s intro duc e d b y the so -c a lle d “De c re to Be rsa ni”

Re mo rtg a g e a pplic a tio ns ha ve a nywa y lo we r c lo sing ra te s e xpe c ta tio ns
Alto g e the r, the g ro wth a nd pro fita b ility o utlo o k fo r 2007 is ve ry po sitive

SLIDE 9

9

BPO Division busine ss update

Q3 2007 pe rfo rma nc e influe nc e d b y b usine ss se a so na lity a nd a dditio na l c o sts re la te d

to inc re a se o f pro duc tio n c a pa c ity fo r ne w a nd e xisting c lie nts

Ne w BPO c o ntra c t sig ne d with o ne o f the le a ding I

ta lia n b a nking g ro ups, fo r the pro c e ssing o f se c ure d lo a ns fo r pe nsio ne rs o rig ina te d b y the g ro up b ra nc he s

Co ntra c t e xpire s o n 31 De c 2008, a uto ma tic re ne wa l fo r a dditio na l pe rio ds o f 12

mo nths; due to re c e nt la unc h o f the c o lla b o ra tio n it is diffic ult to ma ke a ssumptio ns o n po te ntia l vo lume s o r future c o ntra c t e xte nsio ns

Ne w c usto me r fo r mo rtg a g e pro c e ssing e xpe c te d to la unc h o utso urc e d le nding
pe ra tio ns during Q1 2008; vo lume po te ntia l is to b e ve rifie d
T

he g ro wth a nd pro fita b ility o utlo o k fo r 2007 re ma ins mo de ra te ly po sitive

Q3 2007 pe rfo rma nc e influe nc e d b y b usine ss se a so na lity a nd a dditio na l c o sts re la te d

to inc re a se o f pro duc tio n c a pa c ity fo r ne w a nd e xisting c lie nts

Ne w BPO c o ntra c t sig ne d with o ne o f the le a ding I

ta lia n b a nking g ro ups, fo r the pro c e ssing o f se c ure d lo a ns fo r pe nsio ne rs o rig ina te d b y the g ro up b ra nc he s

Co ntra c t e xpire s o n 31 De c 2008, a uto ma tic re ne wa l fo r a dditio na l pe rio ds o f 12

mo nths; due to re c e nt la unc h o f the c o lla b o ra tio n it is diffic ult to ma ke a ssumptio ns o n po te ntia l vo lume s o r future c o ntra c t e xte nsio ns

Ne w c usto me r fo r mo rtg a g e pro c e ssing e xpe c te d to la unc h o utso urc e d le nding
pe ra tio ns during Q1 2008; vo lume po te ntia l is to b e ve rifie d
T

he g ro wth a nd pro fita b ility o utlo o k fo r 2007 re ma ins mo de ra te ly po sitive BPO Division BPO Division

SLIDE 10

10

Mor tgage mar ke t dynamic s

Ne w Ba nk o f I

ta ly da ta c o nfirms a re side ntia l mo rtg a g e ma rke t slo wdo wn in H1; tre nd c o uld c o ntinue in H2 sinc e the re a re no e vide nt sig ns o f re a l e sta te ma rke t re c o ve ry

I

n this ma rke t e nviro nme nt, Bro king Divisio n

rig ina tio n in H1 g re w Y-o -Y b y c a . 73% :
Hig h g ro wth o f re mo te distrib utio n c ha nne l

pe ne tra tio n vs. o the r c ha nne ls (tra ditio na l a nd no n-tra ditio na l o ne s)

Ne w a dditio na l re -mo rtg a g e de ma nd b o o ste d

b y the Ja n 2007 L a w De c re e “Be rsa ni” (a b o lishing / c a pping pre pa yme nt ra te s o n e xisting mo rtg a g e s)

Re g a rding the so -c a lle d “sub prime mo rtg a g e

c risis”, the ma na g e me nt c o ntinue s to b e lie ve the b usine ss o f the Gro up sho uld no t b e ne g a tive ly a ffe c te d b y the phe no me no n

Re side ntial mor tgage flows in fir st half of the ye ar (€b n) Br

king Division or

igination in fir st half of the ye ar (€mn)

335 579 100 200 300 400 500 600 H1 06A H1 07A Y-o -Y +72.8% 31,7 30,5 5 10 15 20 25 30 35 H1 06A H1 07A Y-o -Y

3.7%

S

urc e : Banc a d’I

talia and Co mpany data

SLIDE 11

11

Divide nd polic y

T

he ma na g e me nt b e lie ve s tha t the fina nc ia l re so urc e s g e ne ra te d b y the o pe ra ting a c tivity c o uld a llo w the Gro up to a do pt a divide nd po lic y - c o nsiste nt with its c urre nt stra te g y o f o rg a nic g ro wth - pro viding fo r a 100% distrib utio n o f the a va ila b le e a rning s (a fte r se tting a side re se rve s re q uire d b y la w/ re so urc e s fo r po ssib le sha re s b uy b a c ks)

I

n a c c o rda nc e with I AS 18 (pa r. 30), with re fe re nc e to the b o o king o f divide nds a s fina nc ia l inc o me , a nd in a c c o rda nc e with a rt. 2433-b is o f the Civil Co de (“inte rim divide nds”), the ma na g e me nt unde rline s tha t the e a rning s distrib ute d b y the o pe ra ting c o mpa nie s o f the Gro up, e ntire ly o wne d b y the Ho lding , c a n b e a c c o unte d a s fina nc ia l inc o me b y the Ho lding in the ye a r a fte r the ir re a liza tio n a nd, c o nse q ue ntly, the y a re distrib uta b le b y the Ho lding with a de la y o f o ne fina nc ia l ye a r.

T

he ma na g e me nt b e lie ve s tha t the fina nc ia l re so urc e s g e ne ra te d b y the o pe ra ting a c tivity c o uld a llo w the Gro up to a do pt a divide nd po lic y - c o nsiste nt with its c urre nt stra te g y o f o rg a nic g ro wth - pro viding fo r a 100% distrib utio n o f the a va ila b le e a rning s (a fte r se tting a side re se rve s re q uire d b y la w/ re so urc e s fo r po ssib le sha re s b uy b a c ks)

I

n a c c o rda nc e with I AS 18 (pa r. 30), with re fe re nc e to the b o o king o f divide nds a s fina nc ia l inc o me , a nd in a c c o rda nc e with a rt. 2433-b is o f the Civil Co de (“inte rim divide nds”), the ma na g e me nt unde rline s tha t the e a rning s distrib ute d b y the o pe ra ting c o mpa nie s o f the Gro up, e ntire ly o wne d b y the Ho lding , c a n b e a c c o unte d a s fina nc ia l inc o me b y the Ho lding in the ye a r a fte r the ir re a liza tio n a nd, c o nse q ue ntly, the y a re distrib uta b le b y the Ho lding with a de la y o f o ne fina nc ia l ye a r. Divide nd polic y Divide nd polic y

SLIDE 12

12

Bac k-ups

SLIDE 13

13

Quar te r ly Pr

fit & loss

(€000)

Q3 2007 Q2 2007 Q1 2007 Q4 2006 Q3 2006

(€000)

Q3 2007 Q2 2007 Q1 2007 Q4 2006 Q3 2006

Re ve nue s 8,333 9,343 6,366 6,412 5,108 Othe r inc o me 154 108 4 151 88 Ca pita liza tio n o f inte rna l c o sts 41 55 48 46 46 Se rvic e s c o sts (2,065) (2,673) (2,283) (1,920) (1,376) Pe rso nne l c o sts (1,994) (1,988) (1,500) (2,073) (1,250) Othe r o pe ra ting c o sts (339) (415) (268) (469) (298) De pre c ia tio n a nd a mo rtiza tio n (256) (262) (226) (290) (295)

Ope rating inc ome 3,874 4,169 2,142 1,857 2,023

F ina nc ia l inc o me 84 82 73 87 58 F ina nc ia l e xpe nse s (101) (91) (81) (78) (18)

Ne t inc ome be fore inc ome tax e xpe nse 3,857 4,160 2,134 1,866 2,063

I nc o me ta x e xpe nse (1,737) (1,788) (890) (749) (828)

Ne t inc ome 2,120 2,372 1,244 1,117 1,235

SLIDE 14

14

Busine ss se asonality and r e ve nue s dynamic s

4,5 5,8 5,1 6,4 9,3 8,3 2 4 6 8 10 Q 1 06 Q 2 06 Q 3 06 Q 1 07 Q 2 07 Q 3 07

Re ve nue s (€m)

Q3 2007 re ve nue s c o mpa re d to Q2 o ne s sho w a

de c re a se due to the se a so na lity tre nds o f the mo rtg a g e a nd c o nsume r c re dit ma rke ts

Co mpa re d with mo nthly a ve ra g e re ve nue s,

re ve nue s in July a nd De c e mb e r a re g e ne ra lly hig he r while in Ja nua ry a nd Aug ust a re lo we r; this no rma lly re fle c ts into Q1 a nd Q3 re ve nue s re sults b e lo w Q4 a nd Q2 o ne s

SLIDE 15

15

Risk fac tor s

What do you c onside r as manage r s the main r isk fac tor s pote ntially affe c ting your busine ss? What do you c onside r as manage r s the main r isk fac tor s pote ntially affe c ting your busine ss?

T he risk fa c to rs hig hlig hte d in the pro spe c tus, inc luding :

T

he c o mpa ny fa c e s risks re la ting to po ssib le se rvic e inte rruptio ns, e rro rs a nd b re a c he s

f se c urity in its I

T , te le c o mmunic a tio ns a nd e le c tric a l syste ms;

De c re a se s in the fe e s the c o mpa ny re c e ive s fo r its c re dit b ro king a nd BPO se rvic e s

c o uld a dve rse ly a ffe c t the b usine ss, po te ntia lly ha rming c urre nt pro fita b ility le ve ls;

Re c la ssific a tio n a s e mplo yme nt a g re e me nts o f c e rta in c o lla b o ra tio n a g re e me nts

c o uld re sult in a dditio na l lia b ilitie s fo r the c o mpa ny;

Co mpa ny re sults de pe nd sig nific a ntly o n g e ne ra l tre nds in the I

ta lia n mo rtg a g e , c o nsume r c re dit, fina nc ia l a nd re a l e sta te ma rke ts (e .g . de ma nd fo r lo a n pro duc ts we b ro ke r c o uld de c line with inc re a se s in inte re st ra te s/ o the r ma c ro e c o no mic fa c to rs);

A sig nific a nt pe rc e nta g e o f BPO Divisio n’ s re ve nue s de rive s fro m a limite d numb e r o f

c lie nts. T he risk fa c to rs hig hlig hte d in the pro spe c tus, inc luding :

T

he c o mpa ny fa c e s risks re la ting to po ssib le se rvic e inte rruptio ns, e rro rs a nd b re a c he s

f se c urity in its I

T , te le c o mmunic a tio ns a nd e le c tric a l syste ms;

De c re a se s in the fe e s the c o mpa ny re c e ive s fo r its c re dit b ro king a nd BPO se rvic e s

c o uld a dve rse ly a ffe c t the b usine ss, po te ntia lly ha rming c urre nt pro fita b ility le ve ls;

Re c la ssific a tio n a s e mplo yme nt a g re e me nts o f c e rta in c o lla b o ra tio n a g re e me nts

c o uld re sult in a dditio na l lia b ilitie s fo r the c o mpa ny;

Co mpa ny re sults de pe nd sig nific a ntly o n g e ne ra l tre nds in the I

ta lia n mo rtg a g e , c o nsume r c re dit, fina nc ia l a nd re a l e sta te ma rke ts (e .g . de ma nd fo r lo a n pro duc ts we b ro ke r c o uld de c line with inc re a se s in inte re st ra te s/ o the r ma c ro e c o no mic fa c to rs);

A sig nific a nt pe rc e nta g e o f BPO Divisio n’ s re ve nue s de rive s fro m a limite d numb e r o f

c lie nts.

SLIDE 16

16

De c lar ation of the manage r r e sponsible for pr e par ing the Company’s financ ial r e por ts

De c lar ation Pur suant to Ar

t. 154/ bis, Par

agr aph 2 – Par t IV, T itle III, Chapte r II, Se c tion V-bis, of Italian L e gislative De c r e e No. 58 of 24 F e br uar y 1998: “Consolidation Ac t on F inanc ial Br

ke r

age Pur suant to Ar tic le s 8 and 21 of Italian L aw No. 52 of 6 F e br uar y 1996”

I , the unde rsig ne d, F ra nc e sc o Ma sc ia nda ro , the ma na g e r re spo nsib le fo r pre pa ring the fina nc ia l re po rts o f Gruppo MutuiOnline S.p.A. de c la re s, pursua nt to pa ra g ra ph 2 o f Artic le 154-b is o f the Co nso lida te d L a w o n F ina nc e , tha t the a c c o unting info rma tio n c o nta ine d in this pre se nta tio n c o rre spo nds to the do c ume nt re sults, b o o ks a nd a c c o unting re c o rds.