Purpose doValue
The context
The provision of credit, one of the main drivers of the growth and economic development of modern and advanced economies, allows to undertake entrepreneurial projects that create innovation and employment and to start personal projects related to fundamental stages in the life of each of us. The management of Non-Performing loans is a fundamental activity to restore and maintain the balance of the economic and financial system when this balance is compromised by negative events leading to the insolvency of the debtor.
The proper management of Non-Performing loans, on the one hand, enables credit institutions to better manage their balance sheets and strengthen their lending activities (with the consequent effect of stimulating economic growth and employment levels) and on the other hand leads to a more efficient and equitable allocation of resources within civil and productive society.
Who is doValue?
doValue is the main operator in Southern Europe in the field of credit and real estate management for banks and investors.
With more than 20 years of experience and approximately €150 billion of assets under management (Gross Book Value) across Italy, Spain, Portugal, Greece and Cyprus, doValue Group's activities contribute to the economic growth by promoting the sustainable development of the financial system. With its 3,200 employees, doValue offers an integrated range of services: servicing of NonPerforming Loans (NPL), Unlikely To Pay (UTP), Early Arrears, and performing credit, real estate servicing, master servicing, data processing and other ancillary services for credit management.
Dates as at 31.12.2021
The shares of doValue are listed on Satr segment of Euronext Milan (EXM) and, in 2021, the Group reported Gross Revenues of approximately €572 million and EBITDA excluding non-recurring items of approximately €201 million.
Purpose, the role of doValue: Contribute to restore the balance of the economic and financial system.
doValue provides integrated services in the management of the entire credit life cycle, contributing to restore an economic and financial balance between the creditor and the debtor, to the benefit of long-term economic growth and equity in the allocation of resources within civil and productive society.
Modus operandi
The principles of fairness, responsibility and integrity guide our activities and relationships according to standards of conduct which are consistent with those set out in the Group’s Code of Ethics and the Code of Conduct for the External Network.
We tend to take a conciliatory and conservative approach that enables debtor client to resolve their claims. Each solution is configured with the grated delegation authorities, or submitted to the client’s committee.
In the interest of the community, doValue seeks solutions aimed at pursuing the best management strategy, preferring out-of-court settlements with debtor clients, avoiding long, costly judicial processes and allowing the client to re-establish financial balance in order to return to an economically active role. Asset Managers and the External Network of Collaborators dialogue periodically with the Client debtor to try to find a sustainable out-of-court solution together.
In line with the current legislative orientation, we work to safeguard the entrepreneurial heritage: our management activity is aimed at seeking a settlement agreement regardless of the years of litigation management.
Thanks to its experience, acquired over the years with the management of thousands of loan positions, doValue is able to make a precise assessment of the insolvency of the debtor client anticipating and limiting, where possible, the risks arising from the continuation of the default (or the difficult situation).
The expertise and the level of diversification achieved by the Group over the years, allow to operate along the entire credit value chain, safeguarding the relationship between creditor and debtor clients, ensuring high standards of satisfaction through constant monitoring of the quality of the services offered.
The future evolution of the Group
The Business Plan 2022-2024 confirms doValue as a leading credit servicer in Southern Europe with an efficient, independent and capital light business model.
doValue will lead the evolution of the the credit servicing induatry through investments in technology, strenghtening the strategic relationships with its clients and broadening its reference market:
- our efficient business model reconfirmed doValue independent and capital light operator in the credit servicing sector in Southern Europe;
- best practices and cross selling between the various regions will support our growth and the expansion of our reference market is a further element of long-term development;
- we promote organic growth in all regions where we are present;
- we apply a new dividend policy to increase distributions to shareholders;
- we promote an M&A strategy focused on consolidation, expansion on the reference market and innovation.
It’s a plan that shows a greater impetus towards technology, process automation, productivity improvement, all aimed at making doValue more and more a long-term company and to serve its clients with a diversified portfolio of expertise.
5 pillars of Business Plan
- GROW: Gross Revenues and EBITDA are expected to grow notwithstanding a substantial stability in headline GBV level;
- ENHANCE: increase the level of cross fertilisation amongst the regions in terms of products, capabilities, and adoption of best practices;
- TRANSFORM: the doTransformation program is aimed at extracting more revenues per unit of GBV managed, enhancing productivity in order to lower costs per unit of GBV managed, update the operating model to reduce cost break-even point and strengthening human capital;
- INNOVATE: Innovation, since ever a key focus for doValue, will accelerate in the Business Plan 2022-2024, with a particular focus on data management, process structuring and leveraging the know-how of newly acquired companies in the fintech sectors (QueroQuitar) and proptech (BidX1);
- CARE: Sustainability is the basis of the business strategy to generate long-term sustainable value for all its Stakeholders.
Sustainability for the doValue Group
In the last years doValue has integrated Sustainability into its business strategy to generate long-term sustainable value for all its Stakeholders: shareholders, investors, employees, clients and communities.
For doValue "Sustainability" means combine the objective of creating sustainable value over time with the care for the environment and the attention to all Stakeholders.
doValue has an important and delicate role in the financial ecosystem and this implies the need to act professionally, responsibly and sensibly with respect to clients and debtors.
doValue has defined its ESG strategy by publishing its first Sustainability Plan for the three-year period 2021-2023, which is based on the following pillars:
1. OPERATING RESPONSIBLY
The respect for the highest ethical and moral standards and the mitigation of risks are fundamental principles for doValue to operate responsibly and to build stakeholder trust.
2. ATTENTION TO PEOPLE
doValue recognises the value of the people who contribute every day,with commitment and dedication, to the development of the Group’s activities and to the creation of value in the medium- and long-term.
3. CARE FOR THE ENVIRONMENTW
While operating in a sector with a limited environmental impact, doValue is committed to reducing the impacts generated by its activities.
Rating of doValue
Our business requires us to measure performance not only from a financial point of view but also from the ESG issues point of view: the social aspect plays a key role for doValue.
The operational excellence and the concrete commitment to sustainability of doValue are demonstrated by the recent Servicing Rating and ESG Rating: in February 2022 as Special Servicer, Fitch Ratings confirmed the rating “RSS1- / CSS1-” and Standard & Poor’s confirmed the “Strong” rating, which represent the highest Servicer Ratings among those assigned to Italian operators in the sector.
In October 2021, MSCI ESG Ratings increased doValue’s ESG rating from “A” to “AA”, a tangible example of doValue’s commitment to adopting best practices in the interest of its stakeholders, particularly customers, capital providers (shareholders and bondholders), stakeholders, and the broader social and environmental ecosystem in which the company operates.
In July 2022, Sustainalytics has upgraded the Group’s ESG Risk Rating from “Medium Risk” (20.6) to “Low Risk” (19.1), in line with the continuous improvement trajectory followed by the Company since the first rating assigned by Sustainalytics, in October 2020.
