doValue S.p.A. (DOV) Earnings Call Transcript & Summary

Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the doValue First Half 2025 Financial Results Presentation. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Daniele Della Seta, Head of Group M&A, Strategic Finance and Investor relations of doValue. Please go ahead, sir.

Good morning, everyone. I'm Daniele Della Seta. Today, I'm joined by Manuela Franchi, our Group CEO; and Davide Soffietti, our Group CFO, as we present our half year results. Manuela will begin with an overview of our performance, including key insights into market and business trends. Next, Davide will provide a detailed analysis of our financial results for the period. Finally, I'll share a brief update on our recently announced coeo acquisition, which addresses some of the questions received by investors. We'll conclude with a Q&A session to answer any questions you may have. Thank you for joining us today. I will now hand over to Manuela.

Thank you, Daniele. After the significant news of the coeo acquisition, it's a pleasure to talk again about the consistent daily progress we are achieving in executing our 2024-'26 strategic vision. While a clear strategic direction is paramount for doValue's future, the successful delivery of our established milestone pulls the backdrop of any long-term plan. As you will see from our half year results, the foundations are indeed exceptionally solid. Following a very positive start of the year, doValue continued to deliver a strong set of results across all of our KPIs, including GBV, P&L and cash flows with outstanding year-on-year growth, keeping us on track to deliver on the full year guidance. GBV stood at EUR 141 billion, the highest level since 2022, thanks to robust market conditions and doValue's excellent commercial penetration in all of its core markets. New business intake reached EUR 11 billion, already approaching the revised full year target of EUR 12 billion plus. This target is well within reach, just considering the anticipated additional inflows from banking contracts in the second half of the year. Gross revenue grew 32% year-on-year, reaching EUR 281 million, driven by growth of non-NPL products. Non-NPL revenue amounted to 57%, progressing well towards our 2026 target. In the second half, the growth from non-NPL revenue outpaced the NPL segment, proving this is a recurring and consolidated trend that doValue strategically placed with its 2024-'26 plan. EBITDA ex NRI stood at EUR 99 million, up a staggering 47% versus H1 '24 with margin expansion by focus on synergies and operational efficiencies across regions. Gardant integration continues to progress fast and smoothly with important steps already achieved. Agreement with the unions for voluntary personnel exits, the merger of the master services completed at the beginning of Q3 and the special services already approved will be expected from 1st of January '26, when the integration will be fully finalized. By '26, we will have completed most of the integration plan with the full effect of cost synergies becoming apparent in '26. This will allow us to focus on the execution of our recently announced acquisition of coeo. The EUR 5 million run in synergies for this year have already been reached. Cash flow dynamics were once again very positive with a remarkable year-on-year increase in free cash flow and operating cash conversion, well on track to achieve our full year guidance of EUR 60 million to EUR 70 million free cash flow. Finally, the acquisition of coeo is proceeding towards closing by January '26. We are already working on the regulatory approval for which we don't see any risk. Both rating agencies, Fitch and Standard & Poor's have confirmed doValue's BB rating with stable outlook following the acquisition. The company's financial profile was deemed unaffected by the acquisition, thanks to the limited increase in leverage and swift deleveraging path. While the business profile is seen as benefiting from the diversification and growth profile of coeo. Although coeo will be run as a stand-alone brand without any significant integration risk, we are already laying the groundwork for a value creation road map to be deployed post-closing in order to reap the most from this very attractive acquisition. If you follow me to Page 3, you will see the tangible results of our commercial effort. As of today, we have already generated EUR 11 billion in new business GBVs, approaching the new target of EUR 12 billion we gave at Q1 results for the entire 2025. This outstanding performance showed continued strength in business development in the second quarter with EUR 800 million new mandates since May. This includes a significant new retiring mandate won in Spain with a leading banking institution as well as new UTP mandates in Italy. Additionally, in Italy, a project was started with a major utility to manage their small tickets unsecured and for data remediation. The growth into nonfinancial receivables will prove a significant growth opportunity, further boosted by coeo specialized know-how and advanced technological capabilities in this segment. Digital inflow from contracts with banks, which we normally refer to as forward flow, stood very soundly at EUR 2.1 billion in the first half of the year, well above our initial target of EUR 2 billion per annum. This performance was mainly driven by plus 42% in the flows from Spain as well as solid flows contributed with Italian and Greek banking partners, which continues to contribute GBV along the credit value chain from earlier years all the way to NPL. Forward flow contracts alone were able to replenish 85% of collection in the first half, contributing to GBV stabilization. Once we include the new mandate in the equation, we can easily see a very positive GBV dynamic underway. Even in times of positive economic activity and healthy bank balance sheet, market flows continue not only to exist, but to be sufficient to preserve the stability of the group GBV within very high levels. While we have recognized the need for revenue diversification and delivered on that promise, we remain strong believers in our NPE franchise, which will continue to deliver stable, visible and recurring cash flows in every macro environment. We are working to renew the Santander contract for which we will provide news in September and continue our partnership with UniCredit on flow business beyond managing the stock also after the closure of the current contract in October. While we remain positive on potential upside to the other forward contract as effects of Italian banking M&A rates. Proof of that is on Page 4. We are pleased to report an 18-month pipeline at all-time expansion of the 18-month pipeline at EUR 49 billion. This marks a EUR 14 billion increase from EUR 35 billion identified at the end of 2024, notwithstanding the 25% success rate on the pipeline as of December 31, which the group achieved in the first 7 months of the year. In this context, it's important to note that coeo, while it's not directly impacting the pipeline, and we are not currently including coeo clients in the EUR 49 billion will significantly accelerate and expand the group ability to manage large volumes of nonfinancial receivables in an automated manner through its advanced platform, enhancing the group's competitive advantage in the space as well as potential profitability in that segment. Moving to Page 5. We would like to provide more details on the value-added services, which are key pillar of our diversification strategy. Value-added services made up 20% of H1 gross revenue and increased 70% versus H1 '24. They include both new initiatives announced with the 2024-'26 business plan to diversify the business profile of doValue and ancillary services historically offered to doValue clients. Let's go through them one by one, starting with the new initiatives. First of all, the digital platform. We often mentioned it in the context of nonfinancial receivables. It's a digital channel for debt collection being launched in Greece and Italy and by year-end to come in Spain and Cyprus, driving efficiencies throughout automatization and digitalization of debtor management, increasing profitability, especially on small ticket unsecured, which are using to bid for nonfinancial receivables as well as to manage small tickets in other portfolios. The digital platform will be enhanced by the digital capabilities of coeo. We expect this tool to exponentially accelerate its capabilities in '26, doAdvise business offering advisory services in relation to loan portfolio, sales underwriting and due diligence as well as business planning and business modeling services offered to third parties. Stage 2 model is a proprietary AI model, which identifies the richest and the riskier Stage 2 borrowers before any credit event occurs, allowing for proactive management for banks of their Stage 2 portfolios, offering significant P&L savings linked to the reduction of portfolio profitability of default. This product will also benefit from the acquisition of coeo, specifically from the cAI leading AI center. We are running a test with 2 Italian midsized banks on this. Asset management deployed to Gardant SGR with EUR 800 million in assets. The platform invests in alternative credit through the launch of dedicated funds across different asset classes, offering not only diversification into the stable [indiscernible] asset management business, but also subsequent synergies with our traditional NPE servicing business. FinThesis, our online mortgage brokerage business launched at the beginning of the year in Greece to fill a market gap we identified in the mortgage origination market. It has signed agreements with most major Greek banks and already generating very substantial leads, exceeding original expectations. We expect this business to continue growing significantly on an organic basis. doData a company providing data services today in Italy and from September also in Greece. This includes data intelligence, analytics and business information services, providing comprehensive assets and counterparty intelligence solutions to a wide range of clients. The services support not only captive banking and SPD clients, but now also third-party nonbanking clients. Master Legal business. It entails legal support services for more complex cases, leveraging our extensive network of legal experts across jurisdictions, primarily in Italy, but from second half also in Spain. Legal services are the single largest contributor to value-added services gross revenue because very close to our core business. Finally, master servicing carried out by doNext. It entails support and admin services like loan admin, accounting and cash management, portfolio reporting, servicer oversight and performance review for securitization vehicle with multiple investors and special servicers. doNext has significantly strengthened, thanks to the merger with Gardant Master Servicer, becoming the leading master servicer in Italy by AUM with a 56% market share, EUR 90 billion AUM, 20% of which is from non-captive portfolios. Value-added services does continue to be a key element of the diversification journey outlined on our business plan, and we are trying to say that since the plan announcement, the progress on this front is undeniable. Moving now to Page 6. Let's look at the outstanding progress we are delivering within this business plan time frame. With a mix of organic growth and strategic expansion with M&A at the end of the business plan time frame, doValue will be much bigger, more profitable and with much lower financial leverage. All of those targets are just 18 months away and considerably achievable. Last month, when we announced the acquisition of coeo, we provided the business plan targets for 2026, including coeo around EUR 800 million of gross revenue, of which 55% from non-NPL, around EUR 300 million EBITDA ex NRI and net leverage of 2.2x at December '26. These targets imply an extremely remarkable improvement versus '23, resulting in a 66% increase in gross revenue, 58% increase in EBITDA and a remarkable reduction in leverage of nearly 40%. As this time, the [indiscernible], doValue is progressing towards a significantly more sound, delevered, cash generative and diversified business with growing long-term prospects. This will be the basis of the new business plan, which we will unveil in mid '26, where we will define our new ambition and opportunities for the future. On this bright side, let me hand over to Davide, who will take you through the details of this positive first half results.

Thank you, Manuela, and good morning, everyone. On Page 8, you can see a summary of the first half financials. Overall, in the first half, we registered very positive results across all key metrics with strong growth not only revenue and EBITDA, but also on cash conversion. Gross revenue in the first half of 2025 was EUR 281.2 million, showing the strong double-digit growth of 31.6% versus prior year driven by a non-NPL servicing revenues, especially UTP and value added services, which grew 79% and 70% versus last year, continuing the positive momentum for the recent quarters. Net value rose to EUR 264.6 million, 32.6% higher versus first half 2024, thanks to the continuing impact of our consolidation on outsourcing costs, which decreased by approximately 1% year-on-year, as a percentage of gross revenues to 9.5%. EBITDA ex NRIs was EUR 99.1 million, 47.2% versus first half 2024, driven by strong revenue and cost containment initiatives as well as a successful release of synergies in Italy and the efficiency across the group. Double digit growth continued also in the second quarter. The EBITDA ex NRIs margin at 25.2% grew from 31.5% year-on-year thanks to the continued cost discipline alongside the expansion of higher-margin business and acquisition of Gardant. Net income ex NRIs delivered strong double-digit growth of plus 72.4%, EUR 11.9 million higher than first half of 2024, thanks to the strong growth in EBITDA, which more than offset the increase in financial expenses and minorities. Moving now to Page 9. We can find a breakdown of gross revenue by region. At group level, gross revenue grew plus 31.6% year-on-year, in line with the full year guidance, supported by Gardant contribution, synergies and continued strength in non-NPL revenue, which reached 37.5% of gross revenue. In Hellenic region gross revenue was stable with strong dynamics in value-added services and REOs were offset by lower disposals in the second quarter, which impacted revenue. In Italy gross revenue grew 86% year-on-year, driven by data contribution and by very positive trends in recurring value added services. In Spain, revenue declined only by EUR 1.8 million year-on-year and declining REOs were mitigated by improvement in all other categories. On Page 10, we show how we continue to successfully contain the natural increase in operating costs from the consolidation of Gardant, thanks to continued cost discipline, which allows us to unlock savings across functions and markets. Indeed cost containment remains a key focus for the group even in the current context of strong business expansion. In the first six months of 2025 HR costs were up by 21.9% versus first half of 2024 linked to the effect of Gardant consolidation and to the increase in variable compensation following better-than-expected performance of the business. HR costs increased in Greece due to the onboarding of new portfolios. This effect was effectively mitigated by cost containment measures in Italy and Spain. When it comes to IT, real estate and SG&A expenses, we recorded an increase of EUR 3.9 million year-on-year thanks to already achieved EUR 5 million synergies that mitigated the effect of Gardant consolidation. On Page 11, EBITDA ex NRI for the group was EUR 99.1 million, up 47% versus first half of 2024. This variation was mainly driven by the increase of Italy and by the continued strong performance of recurring value-added services driving revenue across the group. EBITDA ex NRI margin increased significantly thanks to the accretive impact of VAS and [ NPL servicing ] and continued focus on cost containment. EBITDA for the Hellenic region decreased by 7.3% year-on-year to EUR 49.6 million as positive trends in UTPs and value-added services were more than offset by year-on-year decrease in disposals in the second quarter. The region delivered an EBITDA margin of 45.6%, continuing to drive group profitability, 35.2% at the group level despite some onboarding costs of new portfolios in Greece. In Italy, EBITDA rose to EUR 56.2 million, excluding group costs, an increase of EUR 36.6 million against first half 2024 thanks to Gardant as well as to a positive contribution of value-added services to gross revenue. Gardant continues to contribute proportionately to our full year expectation. In Spain, EBITDA was back to being positive, thanks to continued cost efficiency and new portfolio onboardings. Non-recurring items were very limited at minus EUR 2.6 million despite the cost of synergies and coeo acquisition initial fees leading to an EBITDA reported of EUR 96.5 million. Moving to Page 12. We show very positive dynamics in net income evolution, which excluding nonrecurring items, increased by over 70% year-on-year despite the higher financial cost as the new minorities related to BPER and Banco BPM, related to the Gardant acquisition. Breaking down the number, we start from a higher EBITDA driven by positive momentum across key products and markets. Write-downs on property, plant, equipment, intangibles, loans and equity investments were EUR 46.3 million, in line with collection cost, including also Gardant portfolio. Financial interest and commissions increased to EUR 33.6 million, driven by the interest of the new bond issued in February, which amounted to EUR 8.4 million, including amortized costs, the interest on the new term loan funding the Gardant transaction, which amounted to EUR 14.8 million, including amortized costs and the residual interest on the '26 senior secured notes redeemed in February of EUR 1.3 million. The line also includes EUR 7.3 million nonrecurring costs related to the early redemption of the 2026 bond and reduction of the term loan dedicated to refinancing the '26 bond, which was not [indiscernible]. Income tax for the period was higher due to the one-off effect in first half 2024 from the tax paid in Spain. If we adjust for that tax is only slightly higher on the back of the higher EBITDA and the consolidation of Gardant's profit-making legal entities in Italy. Finally, minorities increased due to Gardant's partnership with Banco BPM and BPER bank. The nonrecurring items at net income level amounted to EUR 16 million, mainly due to aforementioned one-off costs related to the refinancing of '26 bonds as well as to a lower extent, payment for the exit of employees as part of the integration in Italy. Moving to Page 13. Let's have a look at the cash flow dynamics, which improved significantly. Cash flow from operation in the first half increased considerably to EUR 80.6 million, up EUR 61 million versus first half of 2024. Cash conversion reached a notable increase in first half at 84% versus 30% in first half 2024. This positive result was achieved thanks to continued reduction in net working capital, thanks to improved control of the invoicing cycle for securitization and positive dynamics in advanced payments. CapEx was EUR 8 million. Lease payments slightly increased versus the previous year to EUR 10.1 million due to [indiscernible] mitigated by the real estate efficiencies carried out by [indiscernible]. Redundancies increased slightly year-on-year to EUR 5.67 million in the first half [indiscernible] from the voluntary action program as part of the Gardant integration, which is expected to continue in the second half of the year. Other changes in other assets and liabilities were stable year-on-year with an increase versus first quarter, mainly related to the temporary impact of the '24 MBO payment higher than the first half 2025 [indiscernible]. This negative effect will be completely offset in the second half of the year. Free cash flow was significantly higher than the previous year at EUR 50.5 million, up from negative minus EUR 1.8 million in the first half of 2024. The EUR 62.3 million increase in free cash flow was [indiscernible] in line with our ambition to return to the historical levels of cash generation. Minorities of EUR 7.7 million linked to BPER and BPM were distributed in the period with no further significant payments expected to minorities in 2025. Investment in equity and financial assets include the earnout for doValue Greece in January 2025. On Page 14, we show our net debt and leverage position. At the end of the period net debt stood at EUR 484 million down from EUR 514.4 million recorded at the end of 2024 and from EUR 504 million at March 2025. During the second quarter, we repaid the first tranche of the term loan, decreasing our gross debt by EUR 26.3 million. Nevertheless, we closed the quarter with a solid cash position of EUR 132 million and enjoy a liquidity buffer of EUR 262 million, including undrawn revolving credit facility lines. Net leverage at the end of June remained stable quarter-on-quarter at 2.3x on a pro forma basis with 12 months of Gardant EBITDA, decreasing from 2.4x level at December 2024 and 2.9x in June 2024, supported by very positive cash flow dynamics and despite the EUR 11 million of earnout paid to doValue Greece and the EUR 8 million minorities paid in the second quarter to BPER and Banco BPM. Our rating was confirmed at BB with stable outlook in July in the context of the announcement of the acquisition of coeo. Our bond trades at one of the lowest of the industry, reflecting the solvency of our asset-light business model. Let's now move to Page 15. To conclude, we had a very positive first half of the year with growth rates in line with our full year guidance, which gives us confidence in the ability to position ourselves within the guidance range for the full year 2025 communicated in February. As a reminder, the guidance implies gross revenue between EUR 600 million and EUR 650 million, EBITDA, excluding nonrecurring items between EUR 210 million and EUR 220 million and net leverage at 2x, thanks to continued positive cash flow generation. In the context of coeo acquisition, we confirm our dividend policy of 50% to 70% of the net income excluding NRI to be distributed from 2026. We expect the acquisition to close in January 2026 with the 2025 full year numbers to show clear delivery of the guidance without impact from coeo contribution. Finally, before handing over to Daniele, let's move to Page 16. Here, you'll find the 2026 business plan targets, including coeo, which imply significant progress since 2024. The current targets do not include any potential synergies on which we will share more details in the new business plan in mid-2026. The targets currently include the conservative end of the stand-alone value guidance. We expect to end 2025 at our target leverage of 2x and 2026 with 2.2x with fast leverage our initial 1.5, 1.8 net leverage target by just 1 year from 2026 to 2027. As previously mentioned, at closing of the acquisition, the cash generation for coeo will be decreased by the sale of the debt book resulting from the company's hybrid model. The cost of financing the consolidation of coeo portfolio is included in our cash conversion estimate of 40% to 50% for coeo. As a result, starting from 2025 level of net debt in line with our guidance and accounting for the new bond as well as the expected free cash flow for doValue and coeo, we reached 2.2x net debt to EBITDA at the end of 2026, in line with our target. Let me now hand over to Daniele, who will dive deeper into some key opportunities stemming from the acquisition of coeo.

Thank you, Davide. It's a great pleasure to outline how the acquisition of coeo will redefine doValue's growth trajectory, accelerating our diversification into nonfinancial receivables. Let's begin by highlighting coeo's standout strength, its technology-driven customer-centric approach. In e-commerce, delivering an exceptional customer experience is paramount. From the moment the customers visit the website for us, a seamless journey from product selection to checkout is essential. Amazon revolutionized this 20 years ago with its groundbreaking one-click checkout system. However, the experience shifts dramatically when a transaction sales and collection becomes necessary. The process often turns bumpy, marked by disjointed phone calls, outdated web portals, cumbersome payment system and fragmented communications. This is where coeo steps in, leveraging advanced technology to transform this challenging phase into a smooth customer-friendly resolution process. Coeo prioritizes an outstanding customer experience, setting new standards and ensuring the customers' journey in the collection phase is as smooth as the commerce experience. This has allowed coeo to thrive in this vertical. Its method is built around self-learning processes that adapt to the behavior of consumers, recognizing how they communicate and determine the best response. From the moment a [ file ] is assigned to coeo, it takes just 65 minutes to automatically set up a payment and resolve the case without any human intervention. The same process takes more than 5 days for a traditional operator involved in multiple manual interaction, e-mails and calls, back and forth validation before reaching resolution. The service portal of coeo is a key component of this, offering a portfolio of services that is unrivaled elsewhere in the industry, making settling outstanding claims easier and faster. This portal has received multiple awards for best-in-class user experience from external third parties. The portal is more than a webpage. It is a service focused on convenience, transparency and low effort interaction for debtors, leading to high conversion rates. This is certified by very high rating on Google reviews and Trustpilot all above 4.5. AI is a game changer for coeo, revolutionizing data analysis and process automation. The modular AI ecosystem, cAI developed in-house supports all business processes with maximum flexibility and leverages generative AI to elevate customer service and process efficiency. It offers 24/7 availability, faster case processing, increased transparency, improved service quality by focused human agents on higher value-added complex issues and enhance compliance through AI-based quality assurance. As of summer 2025, cAI had processed over 1.5 million customer interaction and achieved an automation rate of over 65% since establishment in 2023. All of this has been built with internal capabilities concentrated in the legal entity, cAI Technology, which operates as an independent company within the coeo Group and then doValue Group, enabling agile responses to new technological developments while remaining closely integrated with coeo's processes for rapid testing and refinement of innovation. cAI will become the competence centers for AI solution within the whole doValue Group and will contribute significantly to accelerate the undergoing development of the doValue digital platform. If you follow me to Slide 19, let's move from coeo tech advantage to its broader strategic strength, which go far beyond automation. First, coeo has a long-lasting and stable client base with very demanding and dynamic customers. As per industry standard practice for nonfinancial receivables, coeo has annual contracts, which are renewed on a rolling basis, providing the customer is happy with the service. In the case of coeo, most client relationships, coeo has are over 5 years old with a churn rate close to 0. This stability is a strong foundation for recurring predictable revenue and is a testament of the very high customer satisfaction and the results of a high degree of integration with its customers' operations. Second, the business model is based on volume, number of files processed, not the actual collection rate. As previously mentioned, coeo processes 7 million files per year and continues to focus on increasing automation and digitalization in order to increase that number. As a volume-driven business, it is not linked to credit cycle and is mainly linked to a high degree of operational consistencies and efficiency. Third, the growth opportunity is substantial. Coeo's commercial pipeline include 30 potential new clients in payments, telecom, insurance and other sectors in 2025 and 2026, providing significant upside to our estimates. Fourth, there is no meaningful seasonality in earnings. As shown on the bottom right of the slide, EBITDA is highly stable month-over-month, contributing around 8%, 9% per month with a max deviation from average contribution of just around 7%. Lastly, coeo has a very committed management team that has decided to reinvest its exit package into the new coeo and we, therefore, retain a minority stake around 3% in the new entity that ensures strong long-term alignment without any material impact on doValue's consolidated financials. Finally, I would like to spend a couple of minutes on financial performance of coeo. In our 2026 business plan target, we have assumed around 10% year-over-year growth for coeo. Here, you can see that in the first 5 months of the year, this year, coeo grew by 20%, much higher than our conservative expectation. In fact, it grew even faster than the seller plan, which is much more bullish than our estimates, all this before any revenue synergies. In short, this is a business that grows with its clients, has strong forward visibility and is structurally stable, both operationally and financially. We look forward to closing this acquisition and deliver to you an enhanced growth profile for doValue one quarter at a time. That's all on our side today. Thank you all for your attention. We will now take your questions.

[Operator Instructions] We have the first question of Tommaso Nieddu of Kepler Cheuvreux.

The first one on net working capital dynamics, again, very positive. I remember at the previous call, we were talking about around EUR 15 million for the full year. Is it still the case? It seems you can go a bit higher than that. And that was also a bit offset by higher other assets and liabilities. Can you explain the increase in Q2? Is there something else beyond MBO? The second one is on operating costs, which seems you are doing a great job there in terms of synergies. My question is, are we still talking about only EUR 5 million synergies for the year? Or do you think you can extract something more? And then just the last one on inflows and especially in Spain. I mean in the presentation in the press release, you mentioned 42% increase in flows in Spain. So just a bit more color there. Are you seeing a rebound in activity there?

Okay. I will take the first 2 questions. On network dynamics, as we stated, we are very proud of the results. We are working a lot on this improvement of the process, especially in Greece. We still think that we will be in line with our target by the end of the year. We are working to improve, but we want to see the second part of the year to be sure that we are able also to improve the results. But as of today, we confirm our guidance, our number. In terms of other assets and liabilities, as I would say, the main impact -- negative impact is a temporary impact on the MBO side because we have paid the 2024 MBO and we accrued only the first half of the 2025 MBO. By the end of the year, this impact will be 0. Then we have circa EUR 5 million of other change coming from IFRS 16 and certain payment of more claim that is in line with our expectation. So we don't expect any further increase.

I will take the question on Spain. The focus on the organic growth strategy is proving correct because the company is very much focusing on getting new clients and improving the performance with the existing clients. So the performance on the portfolio with investors has been much above our expectation. And on the bank side, we have achieved other new contracts with the bank on top of the ones we had already gained last year. And we are positive also on Santander renewal. We are also adding, as I mentioned, on the value-added servicing part, development on the legal services side that today, we only do internally, and we will offer also to noncaptive clients from the second part of the year. We have continued our rationalization efforts, especially on the process side. So not a personnel effort anymore, but to reengineer the process behind the NPL and real estate segment in order to extract a business model which has lower -- better operating leverage. And last, we see Spain as the first country where the coeo business model will be deployed based also on the customer -- on the interaction with the key customers of coeo. So all in all, Spain is progressing towards the objective we have portrayed for the year-end.

And the last question was on the synergies. As we announced, we already achieved the target of 2025 of EUR 5 million. So for sure, we will improve the results during this year, but we will benefit most of the higher synergies in 2026 because most of the synergies comes also from HR savings and will depend from the exit. The exits are arriving now in the first -- we closed the voluntary exit scheme this first half, but some people will exit also in the second part of the year.

The next question is from Simonetta Chiriotti of Mediobanca.

So my question is on value-added services, so the Slide #5. So you have commented on the various line of services. Could you help us understand which are the most relevant? So the relative size of this segment? And another question is on cash flow. So you have a EUR 60 million, EUR 70 million target for the full year that has been confirmed. This amount compares with a level achieved in the first half of EUR 30 million. Is that correct?

Okay. Perfect. Sorry, we are having some troubles with microphones today. The main contributors are the legal services, the data services and master servicing, with legal providing around EUR 10 million, EUR 11 million of revenues, master around EUR 6 million and data services around also EUR 6 million. The rest is pretty much spread across the other products. Obviously, there are some which are still in infancy phase like doAdvise, FinThesis that will grow in the next quarters. and also the deployment of data services, legal services to clients of Gardant as well as to third-party clients. It's something we have started this year, so we'll progress from there.