2018 Results April 25th, 2018 1
Disclaimer This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and the securities laws of other jurisdictions. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes", "estimates", "aims", "targets", "anticipates", "expects", "intends", "plans", "continues", "ongoing", "potential", "product", "projects", "guidance", "seeks", "may", "will", "could", "would", "should" or, in each case, their negative, or other variations or comparable terminology or by discussions of strategies, plans, objectives, targets, goals, future events or intentions. These forward-looking statements include matters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, competition in areas of our business, outlook and growth prospects, strategies and the industry in which we operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity and the development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate are consistent with the forward- looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. For a description of important factors that could cause those material differences, we direct you to the section of our Annual Report entitled "Risk Factors". Any forward-looking statements in this presentation are based on plans, estimates and projections as they are currently available to our management. We undertake no obligation, and do not expect, to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this presentation and in our Annual Report. 2
Key Highlights of FY 2018 Sustained growth whilst maintaining strict investment discipline Strong Cash EBITDA growth to €93.5m in FY 2018 (up 6% YoY), pro-forma DSO acquisition (1) • Strong dynamics coming from Debt Servicing +12% in terms of revenues • Increase in Gross collections in spite of lower investment activity (strong performance of the backbook) Collections are up by 3% Significant diversification and rebalancing of our business model • 56% of our business now coming from servicing revenues vs 25% LY (Q4 (2) 2018 vs. 2017) • Extension beyond the banking sector opening new business development opportunities (e.g. insurance, utilities, telco etc.) • First geographic diversification to accompany our existing customers with the acquisition of Serfin – a debt servicer in Italy High level of liquidity & contained leverage despite sustained M&A activity in 2018 (4) • Net debt at 3.0x (3) - one of the lowest amongst European peers • Strong cash generation supported by capital light activities • Significant dry powder, with €92m of cash and €50m of undrawn RCF, readily available to seize attractive investment opportunities Integration of DSOgroup on track to create the No.1 one-stop shop in the French CMS market • Group’s new governance in place and integration workstreams are on track • Estimated synergies from the merger at €4.7m, in line with sizing at due diligence (1) Pro-forma view considers full year contribution for DSO whereas IFRS view only considers DSO figures from acquisition. Excludes Serfin (2) Calculated based on Q4 figures - pro-forma DSO and Serfin (3) Considering MCS&DSO pro-forma including Serfin consolidation & merger synergies materialization 3 (4) Supported by significant reinvestment from shareholders and management
Sustained growth: pro-forma MCS&DSO P&L evolution (1) Total cash revenues Cash EBITDA & Cash EBITDA Margin (€m) (€m) 46% 46% 198.9 46% 46% 187.0 187.0 82.0 73.5 93.5 88.2 113.5 116.9 2017 2018 2017 2018 Cash EBITDA Cash EBITDA margin (2) Gross collection Servicing revenues (1) Cash EBITDA margin calculated as Cash EBITDA as a percentage of Total Cash Revenues. KEY POINTS •Robust performance throughout the year •Cash EBITDA Margin remained stable at 46% 4
Strong Servicing dynamics Servicing revenues Servicing revenues per sector +12% (€m) Utilities Insurance 14% 14% Saas and IT increase of services Industry and 4% Servicing other revenues to reach 11% Telco €82m in 2018 (1) 10% 82.0 73.5 Banking 47% +56% 2017 2018 OF MCS&DSO NET REVENUES (2) KEY POINTS +98% 500 •Robust increase of servicing revenues at 12% in 2018 •During the last 4 years, our number of customers has increased by 5% on CUSTOMER CUSTOMERS average every year (3) FIDELITY •Customers from Banking represent less than 50% of the total customers SINCE 10Y in number, Industry and other non banking customers number is growing fast . (1) MCS&DSO pro-forma view excluding Serfin (2) MCS&DSO Q4 pro-forma view – ratio on net revenues including Serfin (3) DSOgroup Servicing customers evolution only – FY 2018 pro-forma view 5
Debt Purchasing: Strong backbook performance softens the impact of strict investment discipline KEY POINTS +3% • Continued strict investment discipline led to decreasing investment in 2018 • GMM at underwriting was in line with historical levels at 1.8x, on porfolios presenting an attractive risk profile increase in • However, 2018 Collections exceeded that of 2017 thanks to a strong backbook performance, with earlier collections vintages continuing to bring solid cash flows. Portfolio Acquisitions & 120m Gross ERC GMM by Vintage (1) 1.9 1.9 1.6 1.8 1.8 1.8 1.8 1.8 1.5 1.7 1.9 1.8 (€m) 3.3 3.3 450 403 3.0 2.9 Continued strict 2.7 2.6 2.5 investment 2.6 2.3 2.4 discipline (2) 2.1 2.3 2.3 1.8 2.0 1.8 2.2 1.7 2.9 1.9 2.8 61.9 1.7 2.3 1.8 2.3 42.1 2.2 2.1 1.9 1.7 1.8 1.6 1.1 0.8 2017 2018 0.5 Portfolio acquisitions 0.2 ERC 120M Prior 2007 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (2) We intend to continue leveraging our robust due diligence process and analytics tools to ensure that we Actuals 120m implied Actuals+120M MM Due Diligence only acquire portfolios of non-performing and performing loans that present an attractive risk-adjusted • In the first instance, conservative collection forecasts were applied to recent DSO portfolios as the return group is still performing a thorough review of these (1) MCS&DSO pro-forma view 6
Significant diversification & rebalancing Capital light activities now account for 56% of our revenues 2017 (MCS Groupe) (1) 2018 (MCS&DSO) 25% 56% 44% KEY POINTS 75% • Strong business diversification with % Debt purchasing % Debt servicing Servicing providing stable, capital light …and they are spread accross a broad spectrum of industries… revenues • Industry diversification opens growth and 2017 Servicing 2018 Servicing business development opportunities beyond (MCS Groupe) (MCS&DSO (2) ) Utilities banking market (where dynamics remain Insurance 14% Banking Saas and IT 14% 100% favorable) services Industry 4% and other 11% Telco 10% Banking 47% (1) MCS&DSO Q4 pro-forma view – ratio on net revenues including Serfin 7 (2) MCS&DSO pro-forma view excluding Serfin
Snapshot on Italy KEY POINTS • One of the most attractive European markets in terms of NPL • Strong business connection between France and Italy, with significant cross-boarder presence of large corporates • First venture outside France for our Group. • Serfin is an ideal first step: •Servicing business (no underwriting risk) •Highly committed Senior management •Right size / entry price •Compelling customer loyalty with longstanding relationships and an excellent customer satisfaction level •Competitive and cost-efficient business model 8
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