Uploaded byNOAH Advisors
Gruppo MutuiOnline - NOAH14 London
The document outlines the evolution of Gruppo Mutuionline from focusing on the Italian retail credit market to becoming a leading financial services company. It describes the challenges faced due to the financial crisis that led to a drastic reduction in loan volumes and necessitated a restructuring to stabilize and diversify the business. The company has since implemented strategies to recover and create growth, including developing new services in insurance and asset management.
More Related Content
Similar to Gruppo MutuiOnline - NOAH14 London
Gruppo MutuiOnline - NOAH14 London
- 1. NOAH Conference London, 13November 2014
- 3. 2 Until 2011 GruppoMutuiOnline was highly focused on the Italian retail credit market… Broking Business Process Outsourcing Multi-brand broking of mortgages through Internet and telephone Multi-brand broking of consumer loans through Internet Multi-brand broking of mortgages through physical network Remote mortgage packaging services Mortgage underwriting and closing services Employee loan underwriting and closing services VISION To be the most innovative financial services company capturing the opportunities stemming from the evolution of the underdeveloped Italian retail credit market
- 4. 7%22%33% 24% 93% 78% 67% 76% 0 6 12 18 24 30 36 2006A 2007A(a) 2008A 2009A (b) 2010A 2011A BPO Div ision Broking Div ision 17,6 8,5 EBIT (€m) CAGR +29% Broking Division BPO Division 20,9 Note: (a) Excludes one off costs related to restructuring of the Group and the IPO of the Company amounting to €816,000 (b) EBIT margin at Gourp level includes EBIT of Cercassicurazioni.it S.r.l. amounting to -€528,000 …this allowed us to build a leadership position and deliver strong results 21,9 EBIT margin (%) 57% 24% 43% 57% 63%61% 45% 17% 9% 26% 31% 41%44% 47%47% 39% 0% 10% 20% 30% 40% 50% 60% 70% 2006A 2007A (a) 2008A 2009A (b) 2010A 2011A Broking Div ision BPO Div ision Group 59% 28% 22,0 84% 16% 30,9 77% 23% 34%40% 42% 40% 66% 60% 58% 60% 0 10 20 30 40 50 60 70 2006A 2007A 2008A 2009A 2010A 2011A BPO Division Broking Division 37,7 21,8 Group Revenues (€m) CAGR +27% 46,3 47,9 53,4 61% 39% 71,8 58% 42%
- 5. Between 2011 and2012 the Italian retail credit market suddenly collapsed because of the financial crisis 4 New mortgage applications in Italy YoY Change (percent) •First phase: severe supply restrictions (starting Sep 2011) •Second phase (from 2012/13): complete lack of demand In 2 yrs -70%
- 6. 1. Restructure (tosurvive with -70% loan volumes) - Adjustment of media spend in Broking (semi-automatic, because of lower demand) - Reduction of excess capacity (i.e. many layoffs), especially in BPO - Drastic reduction of variable compensation - Review all other costs 2. Create cash buffer (just in case Italy went under) - Borrow in 2011 just before window closes, despite positive cash position - Drastically reduce dividend payout 5 FIRST: STABILIZE BUSINESS TO SURVIVE SECOND: DIVERSIFY TO RE-CREATE GROWTH The collapse of our reference market forced us to intervene forcefully to stabilise the business and re-create growth Broking Division - 2011/2: Develop insurance aggregator - 2012: Develop bank account aggregator - Fall 2012: Start TV advertising with Segugio brand (insurance focus) - 2013: Start utility aggregator (under Segugio brand) BPO Division - End of 2011: Acquire loan portofolio servicing company - 2013: Acquire two insurance BPO companies - Jan 2014: Start asset management BPO business (quasi-greenfield)
- 7. 6 Thanks to theseactions the business is now recovering and growth potential is much higher than before Consolidated Quarterly Results Euro Million
- 8. Some final deepthoughts on change Shit happens… for us three times in 14 years When in trouble you should not complain but roll up your sleeves, fix broken things and start back from what is left You deliver more when your back is against the wall… but it is not a fun experience Focus delivers the highest value, but some diversification (and cash) can protect your company