Altamira doValue Group is launching an ambitious transformation growth and diversification plan to strengthen its leadership on the spanish market

• The Transformation Plan is the first pillar of the Strategic Plan and it includes more than 200 projects which have already started to be implemented with a central aim: to extract more value from the assets managed to offer customers a better result.
• The Transformation is transversal, but it has an ad hoc team for its development and it is incorporating very relevant improvements such as increasing by more than 30% the debt recoveries per employee and raising by 66% the sales of real estate assets (REOs)
• Growth is the second pillar of the Strategic Plan: Altamira doValue Group aspires to attracting new portfolios to its management in the servicing business for the sum of 7,600 million euros until 2024
• It also wishes to grow in terms of end-to-end real estate management through Ádsolum, managing an initial land portfolio of 6,600 million euros and with a view to achieving new real estate development mandates.
• The Plan regards Diversification as the third pillar of its Strategic Plan: Altamira doValue Group is launching a business unit specialised in portfolio management in the SMEs segment, envisaging a growth in problematic assets in this segment.
• What's more, it is creating new business verticals such as the rendering of legal services and other activities to lead disruption in the servicers industry.

Altamira doValue Group today announced a Strategic Plan 2022-2024, part of the Business Plan 2022-2024 approved by its main shareholder - the doValue group -, to transform, grow and diversify. This Strategic Plan is a clear commitment to Transformation, with a central objective: to extract more value from the assets managed to the benefit of its customers through more than 200 projects already defined and which have started to be carried out whose development shall be extended over the next 3 years, with relevant improvements in productivity. The second pillar of the Strategic Plan is Growth, both by attracting new portfolios under the management of the servicing business for a total sum of 7,600 million euros until 2024 and differentiated value proposals for Investors and Financial Entities, as well as with the creation of a new company - Ádsolum - for end-to-end real estate management which has emerged with a land portfolio under its management worth 6,600 million. The third pillar of the Strategic Plan announced today is Diversification through new  businesses, such as the creation of a business unit specialised in problematic asset management of small and medium-sized enterprises (SMEs) or the rendering of legal services, inter alia.

The CEO of doValue group and chairman of Altamira doValue Group, Andrea Mangoni, stressed during an internal meeting held with around a hundred managers of Altamira doValue Group that “one of our differentiating factors is that we have an industrial project with a long-term vision in which we wish to lead the servicers sector on all the markets where we are present”.

“Spain is key to the group as a whole, it has our full backing and we are here to stay”, Andrea Mangoni stressed.

Francesc Noguera, the CEO of Altamira doValue Group, also stressed this medium and long-term commitment message which the plan itself represents per se, and he added that Altamira doValue Group has an excellent team with very ambitious aims. “All of this will enable us to strengthen our leadership on the Spanish market”.

The new Strategic Plan, explained Francesc Noguera, is based on 3 key pillars:

Francesc Noguera, CEO of Altamira doValue Group Spain

1. “The Transformation of our main financial and real estate asset management business in order to take on a much more competitive environment”.
2. “Growth, both in new servicing mandates as well as in new real estate developments”.
3. "And Diversification to new verticals which are close to our strengths and enable us to deal with the disruption which we wish to lead in the servicers industry”.

“The new Altamira positions us as a very powerful pole for the attraction of talent in the servicers sector and this is possible because we have a Plan with the backing of our shareholders - the doValue group (85%) and Santander (15%) -, and its clear commitment to a long-term industrial project”, added Francesc Noguera.

The Strategic Plan of Altamira doValue Group is based on organic growth to attain a real estate and financial asset portfolio under its management which is more diversified and thus more sustainable over time.

Furthermore, the Strategic Plan has been approved in the context of the process opened by Sareb to review its historic servicing contracts whose result is expected to be known in the near future. Altamira doValue Group, one of the main servicers of Sareb in recent years, is competing in this process with its main ambition being to continue with Sareb as a client, bearing in mind the relevance of the contract on the market.

In any case, Altamira doValue Group has the full backing of its shareholders for its Strategic Plan 2022-2024 and so the outcome of the Sareb tender does not place any constraints on the development of its Strategic Plan nor on its firm commitment to keep leading the Spanish servicers market

Transformation, the first pillar of the Strategic Plan

The main pilar of the Strategic Plan approved is the transformation of the traditional servicing business. Altamira doValue Group has been working on a Transformation process since the admission of Francesc Noguera as the CEO in February 2021.

The central aim of this ambitious transformation is to create a  new  Altamira capable of extracting more  value from the assets managed and which results in higher returns for its customers through a major investment in technology which will allow the introduction of new processes and a new modus operandi.

This Transformation Plan already began to be implemented a few months ago and it has more than 200 projects defined, to be developed over the next three years, which affect the core businesses of the company (NPLs, Property &Asset Transformation and Real Estate) and transversal matters such as Organisation and People, Technology, the use of Data or Customer Management, inter alia. Although it impacts the whole organisation, there is a team created specifically for the design and development of the Transformation Plan, with a view to the business units continuing to focus on their aims.

The measures whose implementation is a priority include a major improvement in productivity in the financial asset management business (NPLs), with a view to increasing by 30% employee recoveries by 2024. In the same way, Altamira has set ambitious objectives in terms of the sale of real estate assets (REOs), with an increase of 66% in the sales volume by 2024.

Growth, focus on investors and banks

The second pillar underlying the Strategic Plan is Growth, with there being a clear commitment to achieving new servicing and real estate development mandates.

In this regard, Altamira has set as an objective the attraction of new portfolios of real estate and financial assets for the sum of 7,600 million euros by 2024 -  representing an annual average in excess of 2,500 million euros-, with differentiated value proposals for investors and banks.

To complement this organic growth strategy, Altamira also includes in its Strategic Plan a spin-off from the real estate development business, already implemented in January, to tackle the challenges of the new real estate management environment.

With this in mind, it has created the company Ádsolum, with a view to presenting to the market a differential value proposal which covers the entire life cycle of assets through complete end-to-end management by the new company. Ádsolum has emerged managing a land portfolio of 6,600 million euros and its aim is to substantially increase this line of business through new investor development mandates.

Diversification, a key way of extending the value proposal

The third pillar underlying the Strategic Plan is diversification. For Altamira doValue Group, there is a clear opportunity to increase its value proposal to the market with new verticals or lines of business, thanks to the experience accumulated by the company since its creation. This is combined with the fact that it belongs to a multinational group like doValue which opens up the possibility of importing products and services which work successfully on other markets.

Of the projects unveiled, the Strategic Plan includes the immediate start-up of a specialised business unit for the management of problematic portfolios of small and medium-sized enterprises (SMEs) which until now had not played such an important role in the servicing business. The current economic climate and the potential deterioration of this type of assets on the balance sheets of financial entities, once the subsidies generated during the COVID 19 pandemic gradually fade away, opens up a window of opportunity for the development of this new business unit specialised in this segment.

Another project also included in the Strategic Plan is the offer of a legal advice service based on the know-how accumulated by the company teams to customers who need this type of help.

Within diversification, the Strategic Plan includes other more disruptive projects, under development, which shall take shape in new technology-leveraged business models.