Dovalue Spa

Good morning, this is the Coruscall Conference Operator. Welcome and thank you for joining the Dual Value First Quarter 2026 Financial Results presentation. As a reminder, all participants are in listen-only mode, and after the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Daniele Della Seta, Head of Investor of DuValue. Please go ahead, sir.

Good morning, everyone. I'm Daniele Della Seta, Head of Investor Relations and M&A at DuValue. I'm joined by Manuela Fanti, our Group CEO, and Davide Soccetti, our Group CFO, as we present our Q1 2026 financial results. Manuela will begin with an overview of our project. including key insights into market and business trends. Next, Davide will provide a detailed analysis of our financial results for this quarter. We will conclude with a Q&A session to address any questions you may have. Thank you for joining us today. I will now hand over to Manuela.

Good morning, everyone. Let me start with the three key messages. We confirm our full year guidance of 800 million revenue and 300 million EBITDA performed for the acquisition of Coeo, with the Q1 in line with our internal facing. Coeo, the engine of our next growth phase, is performing ahead of expectation on every metric, with commercial synergies already activated. Commercial momentum across our core servicing business remains strong and increasingly diversified, with non-STL asset classes taking the lead. The year-on-year comparison reflects a very strong Q1 2025 pace. To be clear, last year was not supported by non-recurring items. It bursted from an unusual time in concentration of revenue effects that normally materialize across different quarters of the year. On a like-for-like basis, EBITDA would have been broadly stable year-on-year. This is why our $55 million EBITDA for COE is fully consistent with our full-year guidance and internal savings. Historically, the first quarter represents between 15% and 20% of full-year EBITDA, and on top of that, we will consolidate the full contribution of COE from Q2, a business that is growing at a sustained pace. Taken together, this puts us on the trajectory towards the 2026 combined target. Commercially, the quarter also confirmed a momentum of continuous. New business reached $1.6 billion, in line with the $8 billion annual target, with a healthy contribution from both new mandates and forward flow agreements. Most importantly, Coel's performing ahead of expectation on every key metric. In Q1, Coel revenue grew by 26 year-on-year, and EBITDA XNRI was around $26 million. Clean-up portfolio collections From Q2 onwards, Coeo turns to value into broader, faster-growing and a high-enabled group, with the first commercial synergies already started and revenue synergies expected to materialize from third quarter. A quick update on the timing of our Capital Markets Day. Given that Coeo closed in mid-April and is central to the new phase of the group, We want the new business plan to fully reflect Coeo management, platform and growth opportunities, as well as all the technology levels which will enable our growth and operating efficiencies. We will therefore hold the Capital Markets Day in October, presenting an integrated business plan for the combined group from day one. On automation, Coeo continues to show why it's one of the most advanced platforms in its segment. reporting more than 17% of cases resolved digitally. Finally, our capital structure remains solid. Net leverage was 2.3 times at quarter end. On track, power 2.2 times by year end. And Fitch reaffirms our double B rating with stable outlook in April, after the co-op meeting. On this basis, the board has resolved a dividend of 0.09 per share, payable next week. Sustainable and recurring cash generation will allow us to approach shareholder remuneration in a consistent and pragmatic way going forward. And we will share more details at the October Capital Markets Day. To sum up, Q1 was in line with our internal setting. The year-on-year dynamic reflects timing rather than underlying the trends. COEL is performing ahead of expectations. And with the closing of COEL, the group enters a new phase of growth. diversification and value creation. If you follow me on page 3, let's move to Coeo. Here the message is very positive. First, one important point. The Q1 numbers you see on this page are not yet consolidated into value-reported first quarter results, since the transaction closed on April 16, after quarter end. Coeo is the engine of our next phase of growth, and will fully consolidate to our TNL from April onwards. And this engine is already running at full steam. Cohered very strong first quarter. Revenues were up 26% year on year. File intake grew by more than 40% and the revenue run rate is already well ahead of our expectation. This confirms the quality of the assets that we have acquired and the strength of its digital first model. Importantly, this growth is becoming more diversified. Klarna remains a key client, but is now significantly less than half of total file. More than 60% of files are non-Klarna, supported by new clients in Germany, the Netherlands, and Sweden, as well as renewal across existing clients. On automation, Coel continues to show why it's one of the most advanced platform in its segment. It processes 345,000 high customer interaction in the quarter, up 26%, with 70% of activity handled digitally. This is translating into real efficiency, with the revenue per quarter up 24% year-on-year. The platform is also expanding geographically to a proven greenfield playbook that requires very limited capital expenditures. Sweden is a good example. After just one year, revenues grew by 77% year-on-year, reaching 6 million in the quarter. Denmark has now been confirmed as an additional market, bringing the Duvelio Group to 14 countries in 2026. At the same time, Coeho is starting expansion in Italy and Spain by leveraging the collaboration with Duvelio. And this is already becoming a group opportunity. We have activated commercial synergies with three major clients in Italy and Spain, starting to be managed from June 26, and operational synergies are also underway, including the deployment of Coeo CHI voice agents and CRM capabilities to do value. The takeaway is simple. While reported Q1 does not yet include Coeo, the combined group is already materially stronger. From Q2, we begin consolidating a business that is growing faster than expected, highly automated, increasingly diversified, and already generating tangible synergies with the value. Let's now turn to page 4 and look at why co-op growth is structural. Co-op operates in markets that benefit from several long-term growth trends. The first one is the continued expansion of e-commerce across COEAO core geography, DAC, the Nordics and the UK. E-commerce is expected to continue growing over the coming years, with annual growth rates in the high single digits. The second trend is the increasing penetration of buy now, pay later within e-commerce. Even in the markets where buy now, pay later is already well established, penetration remains far from saturated. In other words, most e-commerce transactions are still paid through traditional methods, which means there is still meaningful room for buy-now-pay-later related receivables to grow within CREO's existing market perimeter. And the third, even larger opportunity is beyond buy-now-pay-later. Non-banking receivables, including telco, utilities, insurance, mobility and commercial receivables, represent a much broader addressable market. There are high volumes, granular receivables, where traditional human-aided servicing model is often too expensive, but where COEO digital and AI-enabled platforms can create attractive economics. This is the key point. Coel does not need to rely on one single growth driver. It benefits from growth in e-commerce, growth in binocular penetration within e-commerce, and growth in broader non-banking receivables outside binoculars. In that, the Nordics and the UK, where Coel is already operating, this creates a clear and immediate runaway. These are markets where the platform is already present, where client relationships are already in place, and while there is still significant wide space to capture. Italy, Greece, and Spain represent an additional opportunity, but with a different timing. These markets are still much smaller in terms of buy-now-pay-later and digital receivable penetration, so we see them as medium- to long-term growth options. The important point is that two values are already at scale, local presence and institutional relationship in these countries. So, as these markets develop, we will be positioned with Coel technology and operating model into them. Let's now turn to new business on page five. Our commercial engine continues to perform. Year to date, new business reached 1.6 billion in line with the trajectory towards the 8 billion annual target. Considering the usual spacing of the year and the pipeline I had. This is a solid result, particularly because this year, There wasn't any sale of a large legacy portfolio like the Alphabet One agreed last year, and still delivered 1.6 billion of new business. This is business as usual. The mix is also encouraging. In Italy, we signed 460 million of new servicing mandates with non-NPL access classes, including performance and UTP exposures, accounting for around 70% of new mandates in Italy. This confirms that diversification is progressing in practice and not only in our strategic narrative. In the Hellenic region, new mandates amounted to around 300 million with a balanced contribution from Cyprus and Greece. We also completed the first ever sale of re-performing loans in Greece while retaining the servicing of the portfolio. an important signal that the Greek market is evolving and that re-performing loans are becoming a recognized and investable asset class. Polar flow remains solid at around 700 million in the quarter. In Italy, Biver contract flow were up 20% year-on-year, despite the fact that the Banca Popolare di Sondrio perimeter will only start contributing after completion of the merger with Biver, which occurred on April 20, 2006. This means that we expect some contribution from Sondrio flows from Q2 with a full effect from Q3 onwards as well as the stock to the assets. Importantly, new inflows were 1.45 times collection, supporting GPD stabilization. So the method is simple. Even in a clear banking system and a normalized MPE market, Duvello continues to generate new business replenish its servicing base and expand into more diversified asset classes. Let's now turn to the market backdrop on page 6. The European empty market has evolved into a new equilibrium underpinning more than 2 billion of acceptable servicing revenues across our core footprint over 26-29 periods. This is not the same market we had 10 years ago, since the peak of the MPL cycle and banks were dealing with very large legacy stocks. The market is smaller than the peak MPL market of the past, but more disciplined, more recurring, and more sustainable. And this is where the role of the servicer has become systemic. This is visible across our footprint. In Italy, we see approximately 5 to 6 billion of annual MP disposals from banks plus 8 billion of secondary disposal, and the country remains the number one destination for European NPL capital allocation in 26. In Spain, primary and secondary disposal together exceed 10 billion annually, with the market entering a regulatory transition under the EU NPL directive. In Greece, we have around 5 billion annual flows from banks and secondary transactions, supported by GDP growth of around 6.5%, and an expanding state receivable of stock above $100 billion. In Germany, the BNP stock has grown 62% versus 2019, to around $50 billion in a highly fragmented servicing market with no structured incumbent. A clear opportunity for skilled, technology-enabled operators like us. The second message is equally important. The opportunity is no longer limited to banking MPs. Technology and AI are making economically viable to serve adjacent asset classes that were historically less profitable under a traditional human-heavy servicing model. This is exactly where the combination with Coel becomes strategically powerful. Duvalio brings scale, licenses, institutional relationships, and deep servicing expertise. COE brings a highly automated AI-enabled platform for small-ticket, high-volume receivables. Together, we can address both sides of the market, the new equilibrium in banking and ETH, and the emerging opportunities in address and credit and receivable segments. Let's now move to page 7, to strategic execution. Beyond the quarterly numbers, Q1 was an important quarter in terms of delivery against the key strategic priorities of the group. First on gardens, the integration is now completed. The seven work streams have been closed. The platform is fully consolidated and synergies are entering through a rate. This is a clear example of execution ahead of plan. This is also visible in the cost base. Staff costs were down 7% year-on-year at group level. confirming that the integration is not only completed from an organizational standpoint, but is also translating into tangible efficiencies. Second, we are preparing for new revenue pools in adjacent markets. In Italy, the 26 budget law positions AMCO as the central procurement platform for the recovery of local tax receivables, and the implementing decree is expected to define the operating rules and the addressable volumes. This could turn that what has historically been a fragmented and ad hoc opportunity into a more institutional and transparent market. For Duvalio, this is exactly the type of opportunity we want to capture in the next phase. Although not traditional banking and PE servicing, but it's very close to our capabilities. Data collection, legal processes, operating scale and technology. Third, we continue to strengthen our commercial positions. In Q1, we won a new servicing mandate from a new client, a leading global asset manager, reinforcing our role with top tier investors and in secondary transactions. At the same time, the first step of BRIC re-performing loan sales confirms what new asset classes are becoming investable and that DoValue is well positioned to remain the servicer of reference as this market evolves. So the message on execution is clear. Garden is the limit, synergies are ahead of plan, new regulatory opportunities are emerging, and institutional client diversification is progressing. The group is moving towards a broader, more fast-growing segment of this market. And it is executing on this roadmap with very solid partnerships. I will now hand over to Davide who will take you through the financial performance of the quarter in more detail.