Quarterly Report • Oct 27, 2022
Quarterly Report
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| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR million | 30 Sep 2022 | 30 Sep 2021 1) | 30 Sep 2022 | 30 Sep 2021 1) | Full year 2021 1) |
| Gross revenue | 82.3 | 70.3 | 247.9 | 228.8 | 307.6 |
| Total income | 58.9 | 38.9 | 176.7 | 144.3 | 158.3 |
| EBITDA | 30.0 | 12.9 | 87.8 | 58.0 | 40.5 |
| Net profit/(loss) after tax from continuing operations | 10.2 | (2.3) | 30.3 | 6.6 | (25.4) |
| Net profit/(loss) after tax from discontinued operations | (1.6) | (3.2) | (5.4) | (11.1) | (20.6) |
| Net profit/(loss) after tax | 8.6 | (5.4) | 24.8 | (4.5) | (46.0) |
| Return on equity, excluding non-controlling interests, annualized | 9.5% | (3.3%) | 9.3% | 0.8% | (8.5%) |
| Return on equity, continuing operations, annualized | 10.1% | (2.1%) | 10.3% | 2.1% | (6.2%) |
| Growth gross revenue, period to period | 17.1% | (5.4%) | 8.3% | 10.3% | 6.5% |
| Cash and cash equivalents, end of period 2) | 20.0 | 36.8 | 20.0 | 36.8 | 38.2 |
| Cash EBITDA from continuing operations 3) | 53.9 | 44.2 | 160.6 | 143.2 | 192.1 |
| Cash EBITDA 4) | 55.6 | 50.8 | 169.5 | 168.6 | 223.8 |
| Acquired NPL portfolios during the period | 68.6 | 32.0 | 195.0 | 60.5 | 114.0 |
| Book value of NPL portfolios, end of period | 1,192.0 | 1,102.1 | 1,192.0 | 1,102.1 | 1,095.8 |
| Estimated remaining collection (ERC), NPL | 2,367.2 | 2,130.4 | 2,367.2 | 2,130.4 | 2,140.5 |
| Interest bearing debt, end of period 5) | 888.4 | 814.1 | 888.4 | 814.1 | 838.3 |
| Number of employees (FTEs), end of period | 1,205 | 1,112 | 1,205 | 1,112 | 1,096 |
| Price per share, last day of period | 5.42 | 9.39 | 5.42 | 9.39 | 7.55 |
1) For some figures, comparative information has been re-presented due to a discontinued operation, see note 12
2) Total cash and cash equivalents from continuing and discontinued operations, excluding restricted cash. See APM table
3) Cash EBITDA from continuing operations is EBITDA adjusted for change in fair value of forward flow commitments, portfolio amortizations and revaluations, repossessed assets cost of sale and impairment, and calculated cost of share option program. See APM table
4) Cash EBITDA is total EBITDA (continuing and discontinued operations) adjusted for change in fair value of forward flow commitments, portfolio amortizations and revaluations, REO and repossessed cost of sales and impairments, and calculated cost of share option program. See APM table
5) Interest bearing debt is total interest bearing debt allocated to continuing and discontinued operations. See APM table
All business segments delivered solid performance in a seasonally slow third quarter. Gross revenue improved 17% compared to the corresponding quarter in 2021, with collection upheld at good levels thanks to a successful strategy for the holiday period. The NPL collection performance has stabilized during 2022 and ended at 99%, the same level as in the previous quarter. Through a consistent focus on efficiency and automation, Axactor achieved a cost-to-collect ratio within the NPL segment of 38% for the first nine months of 2022. This is a significant improvement compared to 44% in 2021, and Axactor will strive for further improvements to this industry leading cost position going forward.
With the recent increases in interest rates and rising inflation, Axactors' debtors are experiencing an increased cost of living. To support debtors through these potentially difficult times, a group wide initiative has been initiated to assist debtors with sustainable payment plans. Such a holistic view on the debtor's financial situation improves the long-term outcome for both debtors and for Axactor.
Axactor has seen commercial success within both the 3PC and the NPL segment during the quarter. NPL portfolio investments amounted to EUR 68.6 million for the quarter, taking the investments so far in 2022 to EUR 195 million. A landmark 3PC agreement was made in Italy with a leading international bank, where Axactor also gains a right of first refusal at an agreed price if the claims are to be sold at a later point in time.
The usage of the debtor portal is developing positively and the average usage in the third quarter was 7% higher than the average usage in 2021. The increased number of log ins mainly originates from Finland and Italy, where the self-service portal has been marketed extensively towards debtors during the summer. Small adjustments have also been made to simplify the log in procedure, as well as to improve the payment plan functionality within the portal.
To attract further usage of the debtor portal, a live chat solution has been integrated into the debtor portal for all the Nordic countries. Front office agents are helping debtors to create payment plans and answering case related questions, with a secure identification log in process.
The ramp-up of the group advanced analytics team continues, and currently consists of seven data scientists. The collaboration between the team and local business intelligence resources progresses according to plan, resulting in an extensive number of machine learning scorecards. These scorecards are used for optimizing communication methods and collection strategies, as well as identifying the probability of payment prior to contacting a debtor.
Substantial technical improvements have been made to the Finnish core collection system, automizing the legal processes for court cases and the bailiff processes. This major milestone will increase both the quality in the debt collection process and the efficiency for the legal collection team in Finland.
Similar successful initiatives have also been implemented in Spain, where two new robotics projects went into production during the quarter. The most important project concerns automatic reading of notifications from the courts, with an expected saving of EUR 0.4 million per annum. The second project is related to automatic writing of judicial submissions in the Catalonia region. Both projects enable Axactor to replace manual work with fully automated solutions.
All employees have received various compliance awareness trainings within good debt collection practices, information security and data privacy in the third quarter.
A desktop exercise in the business continuity plan (BCP) has been held in Spain and Italy. Business continuity managers in all countries have received specific training tailored to the specifics of their role.
Axactor's manuals for dawn raids and whistle blowing have been subject to a full review and updates, and training on the procedures have been provided to relevant employees. Further, the finance team has reviewed the risks of financial crimes and discussed further mitigations.
During the year, Axactor has worked extensively on improving the quality and reporting of its activities contributing to climate gas emissions across the entire Group. The third quarter has been spent completing the data collection and development of the reporting tool. Axactor aims to be able to report on a full set of emissions in scope 1, 2, and 3, compliant with the GHG protocol for the fiscal year 2022. Going forward, this will enable the company to work more actively towards reducing its carbon footprint, as well as to continue to meet stakeholders', society's and regulators' expectations.
Axactor has during the quarter submitted its response to the European Banking Authority's (EBA) consultation on the draft Implementing Technical Standards (ITS) specifying the information that sellers of non-performing loans shall provide to prospective buyers. In the process of preparing its response, Axactor has discussed the matter with relevant peers. Following the consultation, it is anticipated that EBA will finalize and submit the draft ITS to the European Commission by the end of 2022.
To increase efficiency Axactor implemented several organizational changes in the quarter. The number of managers was reduced by 10% in order to promote a leaner organization. This reduction was enabled by extensive focus on leadership development over the course of 2022, with particular focus on middle management. The annual employee satisfaction survey from Great Place To Work conducted in October points toward a successful re-organization, with employees reporting increased satisfaction in relations with the management, their job and their colleagues.
A benchmark comparing the local organizations was conducted to identify best practices and potential performance improvements. The group internal auditor has, together with the NPL team, reviewed the NPL purchase and onboarding processes to improve quality and to ensure compliance. The procurement procedures have been reviewed and updated during the quarter, reiterating Axactor's commitment to transparent, objective, sustainable, and cost-effective procurement practices, with updated and practical guidelines.
Axactor's operations is split into two business segments: NPL and 3PC. The portfolios of purchased real estate (REO) are in a run-off mode and treated as discontinued operations effective from the fiscal year 2022. Repossessed assets from Axactor's secured NPL portfolios are defined as continuing operations and reported under the NPL segment. All comments and numbers in the following text refer to continuing operations unless explicitly stated otherwise. This also applies to figures for previous periods.
Total income for the third quarter came in at EUR 58.9 million, up 51% from the corresponding quarter last year (38.9). The increase was driven both by a 17% increase in gross revenue to EUR 82.3 million (70.3), and a decline in the NPL portfolio amortization rate. The high growth rates compared to last year is partly due to a weak third quarter 2021. The third quarter of 2021 saw significant headwinds in terms of collections, particularly affecting the NPL segment. Furthermore, prolonged effects of the Covid-19 pandemic caused significant negative NPL revaluations and reduced volumes for the 3PC segment.
Total income for the NPL segment was EUR 45.8 million for the quarter, up from EUR 28.0 million in the third quarter 2021. Segment gross revenue grew 17% to EUR 69.3 million (59.4), driven by the investments in NPL portfolios over the past twelve months and a collection performance of 99% in the quarter. The improved collection performance also contributed positively with approximately 7 percentage points on the NPL amortization rate compared to the third quarter last year. The NPL amortization rate ended at 33% for the quarter (43%). Net NPL revaluations ended at negative EUR 1.0 million compared to negative 5.6 million in the third quarter last year. Out of the gross revenue, EUR 0.6 million is related to sale of repossessed assets (0.1).
The 3PC segment continues to grow on the back of the acquisition of Credit Recovery Service, as well as continued organic growth. Total income thus ended at EUR 13.0 million, up 20% compared to the third quarter last year (10.9).
Total operating expenses before depreciation and amortization amounted to EUR 28.8 million for the third quarter, up from EUR 26.0 million in the corresponding quarter last year. As a percentage of gross revenue the operating expenses decreased from 37% to 35%, also when excluding EUR 0.3 million of restructuring cost in the third quarter 2021. The positive development is primarily driven by increased NPL collection, combined with a strict cost focus and improving economies of scale.
Depreciation and amortization – excluding amortization of NPL portfolios – was EUR 2.2 million for the quarter, down from EUR 2.3 million in the corresponding quarter last year.
EBITDA and EBITDA-margin
Total contribution from the business segments was EUR 40.1 million for the quarter, compared to EUR 22.7 million in the third quarter last year. Adjusting for EUR 0.3 million in restructuring costs in the third quarter 2021, the contribution margin over total income grew from 59% to 68%.
The NPL segment delivered a contribution margin of EUR 35.5 million in the third quarter, up from EUR 18.6 million in the same quarter last year. The main driver for the increase in profitability was the improvement in collection performance and increase in gross revenue. The total operating expenses for the NPL segment ended at EUR 10.3 million (9.4), whereof EUR 0.3 million relates to cost of repossessed assets sold (-0.0).The operating expenses grew by 9% from the third quarter 2021, or by 6% when excluding the cost of repossessed assets sold. This compares to a growth in total income of 63%, and the margin over total income thus improved significantly and ended at 78% (66%).
Contribution from 3PC was EUR 4.6 million, up from EUR 4.1 million in the third quarter 2021. The improvement is mainly driven by the inclusion of Credit Recovery Service, as well as organic total income growth and the cost saving initiatives implemented last year. The margin over total income decreased from 40% to 35%, adjusted for EUR 0.3 million in restructuring cost in the third quarter 2021.
EBITDA for the quarter more than doubled from the same quarter last year, ending at EUR 30.0 million (12.9). The EBITDA margin was thus 51%, up from 33% in the third quarter last year.
The difference between contribution margin and EBITDA is comprised of unallocated SG&A and IT costs, which amounted to EUR 10.1 million for the quarter, up from EUR 9.8 million in the third quarter 2021.
Cash EBITDA ended at EUR 53.9 million for the third quarter, up from EUR 44.2 million in the corresponding quarter last year. The improvement was mainly driven by increased NPL collection and higher 3PC income. Adding the contribution from discontinued operations, cash EBITDA was EUR 55.6 million (50.8).
Operating profit (EBIT) was EUR 27.8 million for the third quarter, compared to EUR 10.6 million in the third quarter last year.
Total net financial items for the quarter were negative EUR 13.8 million (negative 12.5), while total interest expense on borrowings for the quarter was EUR 14.0 million (12.1).
Axactor continued to purchase own outstanding bonds in the third quarter, acquiring a total face value of EUR 10.4 million in the quarter. The purchases were made at an average price below par, resulting in a positive net gain of EUR 0.2 million. The total face value of own bonds acquired so far this year is EUR 46.9 million.
The net FX impact for the quarter was negative EUR 0.1 million, compared to negative EUR 0.2 million in the third quarter last year.
Discontinued operations is comprised of the portfolios of real estate assets acquired during 2017 and 2018. It is the operating segment formerly reported as REO, but excluding repossessed assets from Axactor's secured NPL portfolios. Total income for the discontinued operations ended at EUR 2.3 million for the quarter (7.8), while EBITDA ended at negative EUR 1.4 million (negative 2.5). The net profit was negative EUR 1.6 million, compared to negative EUR 3.2 million in the third quarter 2021.
Earnings before tax ended at EUR 14.0 million for the third quarter (negative 1.8), while net profit ended at EUR 10.2 million (negative 2.3). The effective tax rate was thus 27% for the quarter (negative 25%). Adding discontinued operations, the net profit was EUR 8.6 million, up from EUR negative 5.4 million in the third quarter 2021.
The net profit including discontinued operations for the third quarter ended at EUR 9.7 million for shareholders of the parent company (negative 3.4), and at negative EUR 1.1 million for non-controlling interests (negative 2.0). The resulting earnings per share was thus EUR 0.032 both on a reported basis and fully diluted (negative 0.011), based on the average number of shares outstanding in each period.
The following text regarding cash flow includes contribution from both continuing and discontinued operations.
Net cash flow from operating activities, including NPL investments, amounted to negative EUR 17.5 million (26.4) for the quarter. The decrease compared to last year relates to higher NPL investments. The amount paid for NPL portfolios increased from EUR 28.0 million in the third quarter 2021 to EUR 70.5 million in the third quarter 2022. The deviation between the investment in NPL portfolios and the cash paid for NPL portfolios in the period relates to deferred payments on certain portfolios.
Excluding investments in NPL portfolios, cash flow from operations for the quarter amounted to EUR 53.0 million, slightly down from the corresponding period last year (54.5). Cash EBITDA from continuing operations increased to EUR 53.9 million, from EUR 44.2 million in the third quarter last year. The positive development was however partly offset by a EUR 4.9 million reduction in Cash EBITDA from the discontinued operations. In addition, taxes paid increased to EUR 2.6 million (0.0), and the net working capital was reduced by EUR 0.1 million compared to a reduction of EUR 3.7 million in the third quarter last year.
Total net cash flow from investments, not including investments in NPL portfolios, was negative EUR 1.0 million for the quarter (negative 1.0).
Total net cash flow from financing activities was EUR 6.2 million for the quarter (negative 30.4), with a net drawdown on credit facilities of EUR 19.6 million (net repayment of 12.3). Interests paid increased from EUR 11.6 million in the third quarter last year, to EUR 12.3 million.
Total net cash flow was negative EUR 12.3 million for the quarter (negative 5.0), leaving total cash and cash equivalents at EUR 26.2 million at the end of the third quarter (42.3). This includes EUR 6.2 million in restricted cash (5.5) and EUR 2.6 million allocated to the discontinued operations.
Total equity for the Group was EUR 404.7 million at the end of the third quarter (421.3), including non-controlling interests of EUR negative 3.6 million (8.7). The main reason for the reduced equity compared to last year is the losses recognized during the fourth quarter 2021.
The resulting equity ratio at the end of the second quarter was 29% (32%), same as at the end of 2021.
Annualized return on equity for shareholders, including discontinued operations, ended at 9.5% for the third quarter (negative 3.3%), while annualized return on equity for continuing operations ended at 10.1% (negative 2.1%).
Axactor is pleased to see the return on equity improving and aims for further improvements of key drivers in the near- to mid-term future. Increasing economies of scale, changes in the business mix, and the gradual blending in of higher gross IRR NPL portfolios all point towards higher profitability. The effective tax rate is expected to stabilize at around 27% over time, within the company's current jurisdictions. At the same time. the interest rate increases observed recently puts negative pressure on the return on equity development.
Axactor invested EUR 68.6 million in NPL portfolios during the third quarter (32.0) and has estimated NPL investment commitments for the final quarter of 2022 of EUR 37.2 million. A total of EUR 232.3 million of NPL investments is thus already secured for 2022, compared to the modest investment level of EUR 114.0 million for the full year 2021.
Axactor has two outstanding bond loans, both listed on Oslo Børs with respective tickers ACR02 and ACR03. ACR02 has a nominal value of EUR 200 million and ACR03 has a nominal value of EUR 300 million. After the bond buybacks in the second and third quarter, the outstanding face value of ACR02 and ACR03 is EUR 172.1 million and EUR 281.1 million, respectively.
The revolving credit facility from DNB and Nordea has a total size of EUR 545 million, with an additional EUR 75 million accordion option. At the end of the third quarter the drawn amount on the revolving credit facility was EUR 442.5 million.
Total interest-bearing debt including capitalized loan fees and accrued interest amounted to EUR 888.4 million at the end of the third quarter (814.1), including EUR 12.9 million allocated to discontinued operations.
Axactor are in compliance with all loan covenants as per the end of the third quarter 2022.
The activity level in the market for NPL acquisitions continues to be high. Although competition is fierce in certain markets, Axactor is still able to identify attractively priced portfolios. The 2022 NPL investment guiding of EUR 250-300 million is thus re-iterated, with the investments expected to be made at gross IRR levels significantly above the current portfolio stack. EUR 232.3 million of these investments has already been secured through the investments year-to-date and estimated forward flow commitments for the final quarter of the year.
Continued growth is also expected for the 3PC segment. The inclusion of Credit Recovery Service is the main growth driver, with additional organic growth supporting the development.
Increasing interest rates will have a negative impact on Axactor's funding cost. The impact has so far been limited but will increase as interest rates continue upwards. Interest rates are set quarterly for both the RCF and the two outstanding bond loans, resulting in a time lag for when interest rate increases are effectuated. Based on the interest rates set for the fourth quarter 2022 and the draw per 30 September 2022, Axactor expect interest
expenses in the fourth quarter to increase by EUR 2.1 million from the third quarter. Axactor has a partial interest rate hedge in place but still estimate that, based on the interest rates, debt structure and capitalized loan fees per 30 September 2022, a one percentage point increase in the interest rate will further increase the quarterly interest expenses by approximately EUR 1.8 million, and reduce the annualized return on equity by approximately 1.4 percentage points.
Axactor's operations have so far only seen limited impacts on collection from the high inflation and increasing interest rates observed over the past months. There have been some indications in certain markets of fewer large one-off payments and debtors asking for longer payment plans with lower monthly installments, or payment deferrals. In general, a potential further reduction in the debtors' real disposable income could adversely affect their ability to settle their debt. At the same time, this could lead to higher default rates at the banks, creating more volumes of non-performing loans available for both third-party servicing and for purchase. The executive management and Board closely monitor the general macroeconomic situation and its potential business impacts.
| For the quarter end | Year to date | |||||
|---|---|---|---|---|---|---|
| EUR thousand | Note | 30 Sep 2022 | 30 Sep 2021 1) | 30 Sep 2022 | 30 Sep 2021 1) | Full year 2021 1) |
| Continuing operations | ||||||
| Interest income from purchased loan portfolios | 5, 6 | 47,586 | 41,238 | 137,127 | 124,915 | 168,421 |
| Net gain/(loss) purchased loan portfolios | 5, 6 | (2,405) | (13,305) | (5,463) | (17,425) | (62,013) |
| Revenue from sale of repossessed assets | 5 | 637 | 112 | 4,157 | 1,857 | 3,018 |
| Other operating revenue | 13,040 | 10,896 | 40,854 | 34,970 | 48,858 | |
| Other income | - | 1 | 15 | 3 | 15 | |
| Total income | 3, 5 | 58,858 | 38,941 | 176,690 | 144,321 | 158,298 |
| Cost of repossessed assets sold, incl impairment | (276) | 17 | (1,203) | (582) | (2,136) | |
| Personnel expenses | (16,041) | (14,584) | (48,318) | (47,704) | (61,313) | |
| Operating expenses | (12,499) | (11,464) | (39,397) | (38,058) | (54,350) | |
| Total operating expenses | (28,816) | (26,031) | (88,918) | (86,344) | (117,800) | |
| EBITDA | 30,041 | 12,910 | 87,773 | 57,976 | 40,498 | |
| Amortization and depreciation | (2,238) | (2,289) | (6,538) | (7,177) | (9,616) | |
| Operating profit | 27,803 | 10,621 | 81,235 | 50,799 | 30,882 | |
| Financial revenue | 4 | 1,966 | 334 | 4,151 | 1,344 | 3,033 |
| Financial expenses | 4 | (15,774) | (12,788) | (44,437) | (39,750) | (54,012) |
| Net financial items | (13,808) | (12,455) | (40,286) | (38,407) | (50,979) | |
| Profit/(loss) before tax from continuing operations | 13,996 | (1,833) | 40,948 | 12,392 | (20,097) | |
| Tax (expense) | (3,828) | (450) | (10,665) | (5,779) | (5,296) | |
| Net profit/(loss) after tax from continuing operations | 10,168 | (2,283) | 30,284 | 6,614 | (25,393) | |
| Discontinued operations | ||||||
| Net profit/(loss) after tax from discontinued operations | 12 | (1,610) | (3,159) | (5,439) | (11,069) | (20,599) |
| Net profit/(loss) after tax | 8,558 | (5,442) | 24,845 | (4,455) | (45,992) | |
| Attributable to: Non-controlling interests: |
||||||
| Net profit/(loss) after tax from continuing operations | (148) | (125) | 672 | (317) | (952) | |
| Net profit/(loss) after tax from discontinued operations | (947) | (1,875) | (3,174) | (6,414) | (12,242) | |
| Net profit/(loss) after tax | (1,095) | (2,000) | (2,502) | (6,731) | (13,194) | |
| Shareholders of the parent company: | ||||||
| Net profit/(loss) after tax from continuing operations | 10,316 | (2,158) | 29,612 | 6,930 | (24,440) | |
| Net profit/(loss) after tax from discontinued operations | (662) | (1,284) | (2,264) | (4,655) | (8,357) | |
| Net profit/(loss) after tax | 9,653 | (3,442) | 27,347 | 2,275 | (32,797) | |
| Earnings per share: From continuing operations, basic and diluted: |
0.034 | (0.007) | 0.098 | 0.024 | (0.083) | |
| From continuing and discontinued operations, | ||||||
| basic and diluted: | 0.032 | (0.011) | 0.091 | 0.008 | (0.112) |
1) Comparative figures have been re-presented due to a discontinued operation, see note 12.
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Net profit/(loss) after tax | 8,558 | (5,442) | 24,845 | (4,455) | (45,992) |
| Items that will not be classified subsequently to profit and loss | |||||
| Remeasurement of pension plans | - | - | - | - | (4) |
| Net gain/(loss) on equity instruments designated at fair value through OCI |
- | - | - | - | (16) |
| Items that may be classified subsequently to profit and loss | |||||
| Foreign currency translation differences - foreign operations | (2,684) | (444) | (9,375) | 5,985 | 8,924 |
| Net gain/(loss) on cash flow hedges | 4,527 | - | 9,678 | - | (230) |
| Other comprehensive income/(loss) after tax | 1,843 | (444) | 303 | 5,985 | 8,675 |
| Total comprehensive income/(loss) for the period | 10,401 | (5,886) | 25,148 | 1,530 | (37,317) |
| Attributable to: | |||||
| Non-controlling interests | (1,095) | (2,000) | (2,502) | (6,731) | (13,194) |
| Shareholders of the parent company | 11,496 | (3,886) | 27,651 | 8,261 | (24,123) |
| EUR thousand | Note | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
|---|---|---|---|---|
| Assets | ||||
| Intangible non-current assets | ||||
| Intangible assets | 16,947 | 18,426 | 17,824 | |
| Goodwill | 61,195 | 55,496 | 55,960 | |
| Deferred tax assets | 12,218 | 7,761 | 13,700 | |
| Tangible non-current assets | ||||
| Property, plant and equipment | 2,472 | 2,557 | 2,290 | |
| Right of use assets | 8 | 12,211 | 4,596 | 10,768 |
| Financial non-current assets | ||||
| Purchased debt portfolios | 6 | 1,191,969 | 1,102,066 | 1,095,789 |
| Other non-current receivables | 12,352 | 365 | 338 | |
| Other non-current investments | 28 | 196 | 28 | |
| Total non-current assets | 1,309,393 | 1,191,462 | 1,196,698 | |
| Current assets | ||||
| Stock of secured assets | - | 46,043 | 29,310 | |
| Repossessed assets | 2,208 | - | - | |
| Accounts receivable | 5,935 | 6,121 | 7,060 | |
| Other current assets | 16,038 | 13,417 | 16,154 | |
| Restricted cash | 6,214 | 5,488 | 5,798 | |
| Cash and cash equivalents | 17,433 | 36,771 | 38,155 | |
| Total current assets | 47,829 | 107,840 | 96,476 | |
| Assets classified as held for sale | 12 | 16,746 | - | - |
| Total assets | 1,373,968 | 1,299,302 | 1,293,175 |
| EUR thousand | Note | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
|---|---|---|---|---|
| Equity and liabilities | ||||
| Share capital | 10 | 158,369 | 158,150 | 158,150 |
| Other paid-in equity | 270,284 | 269,900 | 269,919 | |
| Retained earnings | 10 | (13,347) | (5,398) | (40,475) |
| Translation reserve | (16,449) | (10,013) | (7,074) | |
| Other reserves | 9,433 | - | (245) | |
| Non-controlling interests | (3,627) | 8,702 | 976 | |
| Total equity | 404,663 | 421,340 | 381,249 | |
| Non-current liabilities | ||||
| Interest bearing debt | 7 | 872,019 | 661,554 | 834,411 |
| Deferred tax liabilities | 11,850 | 6,331 | 6,144 | |
| Lease liabilities | 8 | 9,789 | 3,044 | 8,866 |
| Other non-current liabilities | 1,522 | 1,644 | 1,994 | |
| Total non-current liabilities | 895,180 | 672,574 | 851,415 | |
| Current liabilities | ||||
| Accounts payable | 7,683 | 6,885 | 7,282 | |
| Current portion of interest bearing debt | 7 | 3,474 | 152,568 | 3,845 |
| Taxes payable | 21,091 | 17,443 | 20,259 | |
| Lease liabilities | 8 | 2,782 | 1,779 | 2,185 |
| Other current liabilities | 9 | 24,886 | 26,712 | 26,941 |
| Total current liabilities | 59,916 | 205,387 | 60,511 | |
| Liabilities directly associated with assets classified as held for sale | 12 | 14,209 | ||
| Total liabilities | 969,305 | 877,962 | 911,925 | |
| Total equity and liabilities | 1,373,968 | 1,299,302 | 1,293,175 |
| For the quarter end | Year to date | |||||
|---|---|---|---|---|---|---|
| EUR thousand | Note | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Operating activities | ||||||
| Profit/(loss) before tax from continued operations | 13,996 | (1,833) | 40,948 | 12,392 | (20,097) | |
| Profit/(loss) before tax from discontinued operations | 12 | (1,610) | (3,159) | (5,439) | (11,069) | (20,599) |
| Taxes paid | (2,618) | (10) | (5,470) | (434) | (3,261) | |
| Adjustments for: | ||||||
| - Net financial items allocated to continuing operations | 13,808 | 12,455 | 40,286 | 38,407 | 50,979 | |
| - Net financial items allocated to discontinued operations | 232 | 649 | 889 | 3,355 | 3,796 | |
| - Portfolio amortization and revaluation | 23,446 | 31,342 | 71,242 | 84,144 | 148,542 | |
| - Cost of repossessed assets sold, incl impairment | 276 | (17) | 1,203 | 582 | 2,136 | |
| - Cost of REOs sold, incl impairment | 12 | 3,049 | 9,087 | 13,481 | 33,017 | 48,379 |
| - Depreciation and amortization | 2,238 | 2,293 | 6,538 | 7,211 | 9,654 | |
| - Calculated cost of employee share options | 116 | (7) | 366 | 161 | 180 | |
| Change in working capital | 91 | 3,663 | 163 | 10,846 | 4,991 | |
| Cash flow from operating activities before NPL and REO investments |
53,025 | 54,461 | 164,208 | 178,613 | 224,700 | |
| Purchase of debt portfolios | 6 | (70,452) | (28,006) | (196,984) | (63,847) | (115,402) |
| Sale of debt portfolio | 6 | - | - | - | 300 | 450 |
| Purchases related to REO/repossessed assets | (44) | (19) | (148) | (133) | (193) | |
| Net cash flow from operating activities | (17,471) | 26,436 | (32,924) | 114,933 | 109,555 | |
| Investing activities | ||||||
| Investment in subsidiaries, net of cash acquired | 11 | - | - | (3,085) | - | - |
| Purchase of intangible and tangible assets | (1,084) | (1,015) | (3,794) | (3,582) | (4,718) | |
| Interest received | 113 | 1 | 158 | 2 | 5 | |
| Net cash flow from investing activities | (971) | (1,014) | (6,721) | (3,581) | (4,712) | |
| Financing activities | ||||||
| Proceeds from borrowings | 7 | 58,856 | 300,000 | 260,080 | 454,490 | 542,496 |
| Repayment of debt | 7 | (39,270) | (312,349) | (197,453) | (562,809) | (628,681) |
| Interest paid | (12,341) | (11,592) | (35,891) | (30,104) | (42,050) | |
| Loan fees paid | 7 | 1 | (4,060) | (82) | (24,033) | (24,033) |
| Lease payments | 8 | (719) | (757) | (1,921) | (2,186) | (2,812) |
| New share issues | - | - | - | 50,792 | 50,792 | |
| Repayments to non-controlling interests | (357) | (1,663) | (2,100) | (5,363) | (6,625) | |
| Cost related to share issues | - | - | - | (1,460) | (1,460) | |
| Net cash flow from financing activities | 6,171 | (30,421) | 22,633 | (120,673) | (112,373) | |
| Net change in cash and cash equivalents | (12,273) | (4,999) | (17,013) | (9,320) | (7,531) | |
| Cash and cash equivalents at the beginning of period | 38,474 | 47,338 | 43,953 | 50,725 | 50,725 | |
| Currency translation | - | (80) | (738) | 854 | 759 | |
| Cash and cash equivalents at end of period, incl. restricted funds | 26,202 | 42,259 | 26,202 | 42,259 | 43,953 |
| Equity related to the shareholders of the parent company | ||||||||
|---|---|---|---|---|---|---|---|---|
| Restricted | Non-restricted | |||||||
| EUR thousand | Share Capital |
Other paid in equity |
Translation reserve |
Other reserves |
Retained earnings |
Total | Non controlling interest |
Total Equity |
| Closing balance at 31 Dec 2020 | 97,040 | 236,562 | (15,999) | (16,036) | 301,566 | 74,113 | 375,680 | |
| Result of the period | 2,275 | 2,275 | (6,731) | (4,455) | ||||
| Other comprehensive income of the period | 5,985 | 5,985 | 5,985 | |||||
| Total comprehensive income for the period | - | - | 5,985 | - | 2,275 | 8,261 | (6,731) | 1,530 |
| Repayments to non-controlling interests | - | (5,363) | (5,363) | |||||
| Acquisition of remaining 50% of Axactor Invest 1 | 7,319 | 8,363 | 15,682 | (53,317) | (37,635) | |||
| New share issues | 61,110 | 27,318 | 88,427 | 88,427 | ||||
| Cost related to share issues | (1,460) | (1,460) | (1,460) | |||||
| Share based payment | 161 | 161 | 161 | |||||
| Closing balance at 30 Sep 2021 | 158,150 | 269,900 | (10,013) | - | (5,398) | 412,637 | 8,702 | 421,340 |
| Result of the period | - | - | - | - | (35,073) | (35,073) | (6,464) | (41,536) |
| Other comprehensive income of the period | - | - | 2,939 | (245) | (4) | 2,689 | - | 2,689 |
| Total comprehensive income for the period | - | - | 2,939 | (245) | (35,077) | (32,384) | (6,464) | (38,847) |
| Repayments to non-controlling interests | - | (1,263) | (1,263) | |||||
| Share based payment | - | 19 | - | - | - | 19 | - | 19 |
| Closing balance at 31 Dec 2021 | 158,150 | 269,919 | (7,074) | (245) | (40,475) | 380,273 | 976 | 381,249 |
| Result of the period | 27,347 | 27,347 | (2,502) | 24,845 | ||||
| Other comprehensive income of the period | (9,375) | 9,678 | 303 | 303 | ||||
| Total comprehensive income for the period | - | - | (9,375) | 9,678 | 27,347 | 27,651 | (2,502) | 25,148 |
| Repayments to non-controlling interests | - | (2,100) | (2,100) | |||||
| Share-based payment | 366 | 366 | 366 | |||||
| Bonus issue | 219 | (219) | - | - | ||||
| Closing balance at 30 Sep 2022 | 158,369 | 270,284 | (16,449) | 9,433 | (13,347) | 408,289 | (3,627) | 404,663 |
The parent company Axactor ASA (the Company) is a company domiciled in Norway. These condensed consolidated interim statements ("interim financial statements") comprise the Company and its subsidiaries (together referred to as "the Group"). The Group is primarily involved in debt management, specializing on both purchasing and collection on own portfolios and providing collection services for third party owned portfolios.
The activities are further described in note 3.
This unaudited interim report has been prepared in accordance with IAS 34. The accounting principles applied, excluding discontinued operations, correspond to those described in the Annual Report for the Financial Year 2021. The discontinued operations are described in note 12 of the interim report. This interim report does not contain all the information and disclosures available in the annual report and the interim report should be read together with the Annual Report for the Financial Year 2021.
In preparing these interim financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual result may differ from these estimates. Critical accounting estimates and judgements in terms of accounting policies are more comprehensively discussed in the Group Annual Report for the Financial Year 2021, which is available on Axactor's website: www.axactor.com.
The significant judgements made by management applying the Group's accounting policies and the key resources of estimation uncertainty were the same as those described in the last annual financial statements. Management continues to assess the data and information available at the reporting date.
On the Annual General Meeting on 21 April 2022, it was resolved that the parent company in the Axactor Group were to convert form from a Societas Europaea company (SE) to a Norwegian public limited liability company (ASA). It was further resolved that the parent company were to change name from Axactor SE to Axactor ASA and to amend the company's articles of association. The resolved conversion of form, change of name, and amendment of articles of association were registered with the Norwegian Register of Business Enterprises (Foretaksregisteret) on 2 May 2022. Reference is made to the stock exchange announcement by Axactor SE on 2 May 2022.
As communicated in a press release on 13 December 2021, Axactor ASA has received a conclusion from the Norwegian Financial Supervisory Authority (FSA) in accordance with the preliminary conclusion as stated in the press release of 2 September 2021. The FSA requires that the company expands its revaluation model for portfolios of non-performing loans (NPL) with more input variables capturing current and future macroeconomic conditions and use of scenarios with effect from the reporting of the annual accounts for the financial year 2022.
The estimation of future cash flow is affected by several factors, including general macro factors, market specific factors, portfolio specific factors and internal factors. Axactor has been considering relevant macro factors and market specific factors when estimating future cash flow but not as direct input generating output in the forecast models. The company takes notice of the conclusion from the FSA and has started the work on expanding the portfolio valuation model to better reflect the macro factors and scenarios as required.
The company has tested correlation and collection prediction value from macroeconomic variables interest rate, unemployment, GDP growth, housing price growth, household consumption, disposable income, inflation and salary growth, both on debtor level and portfolio level. The company has progressed far in the development of a new revaluation model and has a framework for a scenario model including external and internal drivers of cash collection. The model will be tested and implemented during the year with effect for the annual accounts for 2022.
Axactor's regular business activities entail exposure to various types of risk. The Group manages such risks proactively and the Board of Directors regularly analyses its operations and potential risk factors and takes steps to reduce risk exposure. Axactor gives strong emphasis to quality assurance and has quality systems implemented, or under implementation in line with the requirements applicable to its business operations.
The risks include but are not limited to credit risk, risk inherent in purchased debt, interest rate risk, regulatory risk, liquidity risk and financing risk. The Group tightly monitors its different risks in all countries where Axactor companies are present. The credit management is negatively affected by a weakened economy. Risks associated with changes in economic conditions are monitored through on-going dialogue with each country management team and through regular follow up on macro-economic development in each country. For a more elaborate discussion on the aforementioned risks one is referred to the Group's Annual Report for the Financial Year 2021, which is available on Axactor's website: www.axactor.com (Note 3 of the Group financial statement).
The first three quarters of 2022 has seen increasing geopolitical risk in Europe with the ongoing conflict in Ukraine. Although Axactor's operations are not directly impacted by the conflict, the executive management and the Board of Directors closely monitor the situation and potential indirect business impacts and maintain the business continuity plans.
The war on Ukraine and the following international sanctions and geopolitical uncertainty has, in addition to the human tragedy, added momentum to already high inflation levels. This has led central banks to increase interest rates earlier and at a faster pace than expected at the start of the year.
The Group holds interest rate caps, a derivative financial instrument with the purpose of reducing the Group's interest rate exposure. At quarter end the fair value of the interest rate hedging derivatives was positive EUR 12.1 million, reported as part of other non-current receivables in the consolidated statement of financial position. The Group holds two contracts at quarter end hedging a total of EUR 200 million in interest rate risk on bond loans. The Group started with hedge accounting at the end of 2021. The Group's strategy is to hedge between 50% and 70% of interest bearing debt with a duration of three to five years. At the end of third quarter of 2022 the hedging ratio was 23%. For further information see note 19 in the annual report for 2021.
The Group monitors its risk of a shortage of funds using cash flow forecasts regularly. The Group had cash and cash equivalents incl. restricted funds of EUR 26.2 million at 30 Sep 2022 (30 Sep 2021: EUR 42.3 million), as reconciled in the consolidated statement of cash flows. Per 30 Sep 2022, the Group had EUR 105.2 million in available credit in the revolving credit facility (30 Sep 2021: EUR 249.0 million).
The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. For forward flow NPL agreements expected cash flows are presented. The maturity calculation is made under the assumption that Axactor has a constant revolving credit facility draw in the period. The table includes both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from the interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Group may be required to pay.
The loan repayment amounts presented are subject to change dependent on a change in variable interest rates.
| EUR thousand | Q4-22 | Q1-23 | Q2-23 | Q3-23 | 1-2 years | 2-4 years | 4+ years | Total |
|---|---|---|---|---|---|---|---|---|
| Forward flow NPL agreements, non-cancellable 1)2) | 37,230 | 21,938 | 21,938 | 8,480 | 6,840 | - | - | 96,427 |
| Forward flow NPL agreements, cancellable 1)2)3) | - | 7,739 | 7,739 | 7,739 | 26,172 | - | - | 49,390 |
| Revolving credit facility DNB/Nordea | 5,684 | 5,684 | 5,684 | 5,684 | 444,985 | - | - | 467,722 |
| Bond ACR02 (ISIN: NO0010914666) | 3,523 | 3,523 | 3,523 | 3,523 | 175,573 | - | - | 189,664 |
| Bond ACR03 (ISIN: NO0011093718) | 4,595 | 4,595 | 4,595 | 4,595 | 18,381 | 317,811 | - | 354,572 |
| Other non-current liabilities | - | - | - | - | - | - | 1,522 | 1,522 |
| Accounts payable | 7,683 | - | - | - | - | - | - | 7,683 |
| Other current liabilities | 21,122 | 3,764 | - | - | - | - | - | 24,886 |
| Total allocated to continuing operations | 79,838 | 47,244 | 43,480 | 30,021 | 671,950 | 317,811 | 1,522 | 1,191,865 |
| Total allocated to discontinued operations | 1,343 | - | - | - | 12,866 | - | - | 14,209 |
| Total | 81,181 | 47,244 | 43,480 | 30,021 | 684,816 | 317,811 | 1,522 | 1,206,074 |
1) Forward flow NPL agreements split by country:
Norway 52 % Germany 37 %
Italy 5 %
Finland 5 %
2) Expected cash flows. Cash flows are limited to EUR 172.8 million by contracted capex limits.
3) Cancellable with three months notice
The ERC represents the estimated gross collection on the NPL portfolios. The ERC, amortization and interest income from purchased loan portfolios can be broken down per year as follows (year 1 means the first 12 months from the reporting date):
| EUR thousand | Estimated remaining collection (ERC), amortization and interest income from purchased loan portfolios next four quarters | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Year | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Year 1 | |||||
| ERC | 70,962 | 78,346 | 77,687 | 72,864 | 299,859 | |||||
| Amortization | 23,571 | 32,029 | 32,908 | 29,416 | 117,925 | |||||
| Interest income from purchased loan portfolios | 47,391 | 46,317 | 44,779 | 43,448 | 181,934 |
| EUR thousand | Estimated remaining collection (ERC), amortization and interest income from purchased loan portfolios next four quarters | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Year | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Year 1 | |||||
| ERC | 79,055 | 68,748 | 70,570 | 66,355 | 284,728 | |||||
| Amortization | 37,553 | 28,621 | 31,585 | 28,475 | 126,235 | |||||
| Interest income from purchased loan portfolios | 41,501 | 40,127 | 38,985 | 37,880 | 158,494 |
| EUR thousand | Estimated remaining collection (ERC), amortization and interest income from purchased loan portfolios per year | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | Total |
| ERC | 299,859 284,710 | 252,527 223,400 196,584 173,918 157,000 141,629 127,592 115,029 104,286 | 93,183 | 75,540 | 66,782 | 55,196 2,367,234 | ||||||||||
| Amortization 117,925 124,225 112,337 101,459 | 89,887 | 80,493 | 75,460 | 71,229 | 67,733 | 65,195 | 64,209 | 62,754 | 54,101 | 53,877 | 51,086 1,191,969 | |||||
| Interest 1) | 181,934 160,485 140,190 121,942 106,697 | 93,425 | 81,540 | 70,400 | 59,860 | 49,834 | 40,077 | 30,430 | 21,438 | 12,906 | 4,110 1,175,266 |
1) Interest income from purchased loan portfolios
| EUR thousand Estimated remaining collection (ERC), amortization and interest income from purchased loan portfolios per year |
|---|
| -------------------------------------------------------------------------------------------------------------------------------- |
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ERC | 284,728 253,350 | 225,441 196,955 175,820 156,950 138,996 125,407 113,238 102,225 | 92,367 | 83,860 | 74,058 | 57,041 | 49,983 2,130,419 | |||||||||
| Amortization 126,235 113,326 102,816 | 89,453 | 81,838 | 74,913 | 67,750 | 63,875 | 60,876 | 58,640 | 57,256 | 57,122 | 55,620 | 46,174 | 46,171 1,102,066 | ||||
| Interest 1) | 158,494 140,024 122,625 107,501 | 93,982 | 82,037 | 71,246 | 61,532 | 52,362 | 43,585 | 35,110 | 26,738 | 18,437 | 10,867 | 3,812 1,028,353 |
1) Interest income from purchased loan portfolios
Axactor delivers credit management services and the Group's revenue is derived from the following two operating segments:
The NPL segment invests in portfolios of non-performing loans. Subsequently, the outstanding debt is collected through either amicable or legal proceedings.
The 3PC segment's focus is to perform debt collection services on behalf of third-party clients. The operating segment applies both amicable and legal proceedings to collect the non-performing loans, and typically receive a commission for these services. Other services provided include, amongst other, helping creditors to prepare documentation for future legal proceedings against debtors, handling of invoices between the invoice date and the default date and sending out reminders. For these latter services, Axactor typically receives a fixed fee.
Axactor reports its business through reporting segments which correspond to the operating segments. Segment profitability and country profitability are the two most important dimensions when making strategic priorities and deciding where to allocate the Group's resources.
Segment total income reported represents revenue generated from external customers.
The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 1. Segment contribution margin represents contribution margin earned by each segment without allocation of management fee, central administration costs, other gains, and losses as well as finance costs. The measurement basis of the performance of the segment is the segment's contribution margin.
Portfolios of purchased real estate is classified as a discontinued operation (see note 12). Portfolios of purchased real estate has prior to 2022 been reported as part of the real estate owned (REO) operating segment. From 2022, in line with internal reporting, REO is no longer considered a separate operating segment. The REO segment consisted of portfolios of purchased real estate as well as repossessed assets from secured non-performing loans. From 2022, in line with the organization and reporting structure used by management, the repossessed assets from secured non-performing loans are reported as part of the NPL segment, whereas amounts from discontinued operations are not included in the segment reporting. Segment information for earlier periods is restated to reflect the change in operating segments.
| EUR thousand | NPL | 3PC | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|
| Collection on own portfolios | 68,627 | - | - | 68,627 |
| Portfolio amortization and revaluation | (23,446) | - | - | (23,446) |
| Revenue from sale of repossessed assets | 637 | - | - | 637 |
| Other operating income: | ||||
| -Change in fair value of forward flow commitments | - | - | - | - |
| -Other operating revenue and other income | - | 13,040 | - | 13,040 |
| Total income | 45,818 | 13,040 | - | 58,858 |
| Cost of repossessed assets sold | (276) | - | - | (276) |
| Impairment repossessed assets | - | - | - | - |
| Direct operating expenses | (10,030) | (8,424) | - | (18,455) |
| Contribution margin | 35,511 | 4,616 | - | 40,127 |
| SG&A, IT and corporate cost | (10,085) | (10,085) | ||
| EBITDA | 30,041 | |||
| Amortization and depreciation Operating result |
(2,238) | (2,238) 27,803 |
||
| Total operating expenses | (10,307) | (8,424) | (10,085) | (28,816) |
| Contribution margin (%) | 77.5% | 35.4% | na | 68.2% |
| EBITDA margin (%) | 51.0% | |||
| Opex ex SG&A, IT and corporate cost / Gross revenue | 14.9% | 64.6% | na | 22.8% |
| SG&A, IT and corporate cost / Gross revenue | 12.3% |
| EUR thousand | NPL | 3PC | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|
| Collection on own portfolios | 59,275 | - | - | 59,275 |
| Portfolio amortization and revaluation | (31,342) | - | - | (31,342) |
| Revenue from sale of repossessed assets | 112 | - | - | 112 |
| Other operating income: | ||||
| -Change in fair value forward flow commitments | - | - | - | - |
| -Other operating revenue and other income | - | 10,896 | 1 | 10,896 |
| Total income | 28,045 | 10,896 | 1 | 38,941 |
| Cost of repossessed assets sold | 17 | - | - | 17 |
| Impairment repossessed assets | - | - | - | - |
| Direct operating expenses | (9,451) | (6,813) | - | (16,264) |
| Contribution margin | 18,611 | 4,082 | 1 | 22,694 |
| SG&A, IT and corporate cost | (9,784) | (9,784) | ||
| EBITDA | 12,910 | |||
| Amortization and depreciation | (2,289) | (2,289) | ||
| Operating result | (2,289) | 10,621 | ||
| Total operating expenses | (9,434) | (6,813) | (9,784) | (26,031) |
| Contribution margin (%) | 66.4% | 37.5% | na | 58.3% |
| EBITDA margin (%) | 33.2% | |||
| Opex ex SG&A, IT and corporate cost / Gross revenue | 15.9% | 62.5% | na | 23.1% |
| SG&A, IT and corporate cost / Gross revenue | 13.9% |
| EUR thousand | NPL | 3PC | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|
| Collection on own portfolios | 202,906 | - | - | 202,906 |
| Portfolio amortization and revaluation | (71,242) | - | - | (71,242) |
| Revenue from sale of repossessed assets | 4,157 | - | - | 4,157 |
| Other operating income: | ||||
| -Change in fair value forward flow commitments | - | - | - | - |
| -Other operating revenue and other income | - | 40,854 | 15 | 40,869 |
| Total income | 135,821 | 40,854 | 15 | 176,690 |
| Cost of repossessed assets sold | (1,203) | - | - | (1,203) |
| Impairment repossessed assets | - | - | - | - |
| Direct operating expenses | (30,391) | (25,778) | - | (56,169) |
| Contribution margin | 104,227 | 15,076 | 15 | 119,318 |
| SG&A, IT and corporate cost | (31,545) | (31,545) | ||
| EBITDA | 87,773 | |||
| Amortization and depreciation Operating result |
(6,538) | (6,538) 81,235 |
||
| Total operating expenses | (31,594) | (25,778) | (31,545) | (88,918) |
| Contribution margin (%) | 76.7% | 36.9% | na | 67.5% |
| EBITDA margin (%) | 49.7% | |||
| Opex ex SG&A, IT and corporate cost / Gross revenue | 15.3% | 63.1% | na | 23.1% |
| SG&A, IT and corporate cost / Gross revenue | 12.7% |
| EUR thousand | NPL | 3PC | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|
| Collection on own portfolios | 191,634 | - | - | 191,634 |
| Portfolio amortization and revaluation | (84,144) | - | - | (84,144) |
| Revenue from sale of repossessed assets | 1,857 | - | - | 1,857 |
| Other operating income: | ||||
| -Change in fair value forward flow commitments | (374) | - | - | (374) |
| -Other operating revenue and other income | - | 35,344 | 3 | 35,347 |
| Total income | 108,973 | 35,344 | 3 | 144,321 |
| Cost of repossessed assets sold | (582) | - | - | (582) |
| Impairment repossessed assets | - | - | - | - |
| Direct operating expenses | (27,298) | (26,676) | - | (53,975) |
| Contribution margin | 81,093 | 8,668 | 3 | 89,764 |
| SG&A, IT and corporate cost | (31,787) | (31,787) | ||
| EBITDA | 57,976 | |||
| Amortization and depreciation | (7,177) | (7,177) | ||
| Operating result | 50,799 | |||
| Total operating expenses | (27,880) | (26,676) | (31,787) | (86,344) |
| Contribution margin (%) | 74.4% | 24.5% | na | 62.2% |
| EBITDA margin (%) | 40.2% | |||
| Opex ex SG&A, IT and corporate cost / Gross revenue | 14.4% | 75.5% | na | 23.8% |
| SG&A, IT and corporate cost / Gross revenue | 13.9% |
| EUR thousand | NPL | 3PC | Eliminations/ Not allocated |
Total |
|---|---|---|---|---|
| Collection on own portfolios | 254,949 | - | - | 254,949 |
| Portfolio amortization and revaluation | (148,542) | - | - | (148,542) |
| Revenue from sale of repossessed assets | 3,018 | - | - | 3,018 |
| Other operating income: | ||||
| -Change in fair value forward flow commitments | (782) | - | - | (782) |
| -Other operating revenue and other income | - | 49,640 | 15 | 49,655 |
| Total income | 108,643 | 49,640 | 15 | 158,298 |
| Cost of repossessed assets sold | (2,046) | - | - | (2,046) |
| Impairment repossessed assets | (90) | - | - | (90) |
| Direct operating expenses | (36,819) | (34,235) | - | (71,055) |
| Contribution margin | 69,687 | 15,405 | 15 | 85,107 |
| SG&A, IT and corporate cost | (44,609) | (44,609) | ||
| EBITDA | 40,498 | |||
| Amortization and depreciation | (9,616) | (9,616) | ||
| Operating result | 30,882 | |||
| Total operating expenses | (38,956) | (34,235) | (44,609) | (117,800) |
| Contribution margin (%) | 64.1% | 31.0% | na | 53.8% |
| EBITDA margin (%) | 25.6% | |||
| Opex ex SG&A, IT and corporate cost / Gross revenue | 15.1% | 69.0% | na | 23.8% |
| SG&A, IT and corporate cost / Gross revenue | 14.5% |
| For the quarter end | Year to date | |||||
|---|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 | |
| Financial revenue | ||||||
| Interest on bank deposits | 113 | 1 | 158 | 2 | 5 | |
| Exchange gains realized | 1,439 | 331 | 1,617 | 1,316 | 2,982 | |
| Gain on purchase of bonds in own bond loans (note 7) | 377 | - | 2,323 | - | - | |
| Other financial income | 37 | 2 | 52 | 26 | 46 | |
| Total financial revenue allocated to continuing operations | 1,966 | 334 | 4,151 | 1,344 | 3,033 | |
| Total financial revenue allocated to discontinued operations | - | - | - | - | - | |
| Total financial revenue | 1,966 | 334 | 4,151 | 1,344 | 3,033 | |
| Financial expenses | ||||||
| Interest expense on borrowings 1) | (14,031) | (12,107) | (41,827) | (36,184) | (49,099) | |
| Exchange losses realized | (75) | (280) | (210) | (483) | (3,161) | |
| Net unrealized exchange loss | (1,451) | (288) | (1,711) | (2,814) | (1,326) | |
| Other financial expenses 2) | (216) | (114) | (690) | (269) | (427) | |
| Total financial expenses allocated to continuing operations | (15,774) | (12,788) | (44,437) | (39,750) | (54,012) | |
| Total financial expenses allocated to discontinued operations | (232) | (649) | (889) | (3,355) | (3,796) | |
| Total financial expenses | (16,005) | (13,437) | (45,326) | (43,106) | (57,809) | |
| Net financial items allocated to continuing operations | (13,808) | (12,455) | (40,286) | (38,407) | (50,979) | |
| Net financial items allocated to discontinued operations | (232) | (649) | (889) | (3,355) | (3,796) | |
| Total net financial items | (14,039) | (13,103) | (41,175) | (41,762) | (54,775) |
1) Interest expense on borrowings for the third quarter of 2022 includes EUR 0.2 million in amortization of capitalized loan fees related to the relative fair value of repurchased bonds 2) Includes interest expense from negative bank accounts in group multicurrency cash pool and negative interest on bank deposits.
The Group operates in seven European countries: Finland, Germany, Italy, Luxembourg, Norway, Spain, and Sweden. Apart from in Luxembourg, Axactor delivers credit management services in all countries. The Group's revenue from continuing operations from external customers by location of operations are detailed below.
| Total income | For the quarter end | Year to date | |||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Finland | 4,307 | 3,471 | 12,278 | 11,128 | 10,113 |
| Germany | 8,907 | 7,082 | 26,147 | 23,711 | 30,331 |
| Italy | 6,912 | 3,066 | 20,334 | 12,494 | 17,387 |
| Norway | 10,404 | 8,301 | 32,157 | 28,867 | 35,271 |
| Spain | 21,306 | 10,421 | 64,054 | 43,220 | 59,009 |
| Sweden | 7,022 | 6,600 | 21,720 | 24,901 | 6,187 |
| Total income from continuing operations | 58,858 | 38,941 | 176,690 | 144,321 | 158,298 |
| Total income from discontinued operations | 2,269 | 7,790 | 11,134 | 29,301 | 36,828 |
| Total income | 61,127 | 46,731 | 187,824 | 173,622 | - 195,127 |
| Non-current assets 1) | For the quarter end | Year to date | ||||
|---|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 | |
| Finland | 3,902 | 4,178 | 3,902 | 4,178 | 4,052 | |
| Germany | 15,589 | 12,813 | 15,589 | 12,813 | 15,884 | |
| Italy | 16,054 | 9,255 | 16,054 | 9,255 | 9,184 | |
| Norway | 33,863 | 32,760 | 33,863 | 32,760 | 36,088 | |
| Spain | 20,010 | 18,187 | 20,010 | 18,187 | 17,519 | |
| Sweden | 3,407 | 3,882 | 3,407 | 3,882 | 4,115 | |
| Total assets | 92,826 | 81,074 | 92,826 | 81,074 | 86,843 |
1) Non-current assets consist of intangible assets, goodwill, property, plant and equipment and right-of-use assets. There are no non-current assets related to discontinued operations.
Portfolio revenue consists of interest income from purchased loan portfolios, net gain/(loss) from purchased loan portfolios and revenue from sale of repossessed assets. In line with the information given in note 3 and 12, revenue from sale of repossessed assets is reported as part of the NPL segment from 2022. The portfolio revenue tables below will hence include revenue from sale of repossessed assets for current and prior periods. Net gain/(loss) from purchased loan portfolios is split into collection above/(below) collection forecasts (previously reported as CU1) and net present value of changes in collection forecasts (previously reported as CU2 and CU2 tail).
| EUR thousand | Finland | Germany | Italy | Norway | Spain | Sweden | For the quarter end 30 Sep 2022 |
|---|---|---|---|---|---|---|---|
| Interest income from purchased loan portfolios | 3,774 | 7,795 | 4,864 | 10,033 | 14,185 | 6,935 | 47,586 |
| Collection above/(below) forecasts | 437 | (1,282) | (264) | (688) | 579 | (214) | (1,433) |
| NPV of changes in collection forecasts | (95) | 303 | 83 | (459) | (154) | (650) | (972) |
| Net gain/(loss) purchased loan portfolios | 341 | (979) | (181) | (1,146) | 425 | (865) | (2,405) |
| Sale of repossessed assets | 637 | 637 | |||||
| Total | 4,115 | 6,817 | 4,683 | 8,886 | 15,247 | 6,070 | 45,818 |
| EUR thousand | Finland | Germany | Italy | Norway | Spain | Sweden | For the quarter end 30 Sep 2021 |
|---|---|---|---|---|---|---|---|
| Interest income from purchased loan portfolios | 3,735 | 5,375 | 3,953 | 9,183 | 10,565 | 8,429 | 41,238 |
| Collection above/(below) forecasts | (438) | (1,002) | (590) | (2,316) | (545) | (2,797) | (7,689) |
| NPV of changes in collection forecasts | - | 176 | (808) | (224) | (5,346) | 585 | (5,617) |
| Net gain/(loss) purchased loan portfolios | (438) | (826) | (1,397) | (2,540) | (5,891) | (2,212) | (13,305) |
| Sale of repossessed assets | 112 | 112 | |||||
| Total | 3,297 | 4,549 | 2,555 | 6,642 | 4,786 | 6,216 | 28,045 |
| EUR thousand | Finland | Germany | Italy | Norway | Spain | Sweden | Year to date 30 Sep 2022 |
|---|---|---|---|---|---|---|---|
| Interest income from purchased loan portfolios | 11,047 | 21,123 | 13,843 | 29,679 | 40,126 | 21,308 | 137,127 |
| Collection above/(below) forecasts | 825 | (2,872) | (177) | (2,084) | (381) | 562 | (4,127) |
| NPV of changes in collection forecasts | (103) | 1,623 | 166 | (330) | (467) | (2,225) | (1,336) |
| Net gain/(loss) purchased loan portfolios | 722 | (1,249) | (11) | (2,414) | (849) | (1,662) | (5,463) |
| Sale of repossessed assets | 4,157 | 4,157 | |||||
| Total | 11,769 | 19,874 | 13,833 | 27,265 | 43,435 | 19,646 | 135,821 |
| EUR thousand | Finland | Germany | Italy | Norway | Spain | Sweden | Year to date 30 Sep 2021 |
|---|---|---|---|---|---|---|---|
| Interest income from purchased loan portfolios | 11,231 | 15,819 | 12,193 | 27,211 | 32,817 | 25,644 | 124,915 |
| Collection above/(below) forecasts | (742) | (553) | (538) | (4,540) | (1,272) | (3,243) | (10,889) |
| NPV of changes in collection forecasts | 16 | 402 | (720) | 969 | (8,828) | 1,625 | (6,536) |
| Net gain/(loss) purchased loan portfolios | (726) | (151) | (1,257) | (3,572) | (10,101) | (1,618) | (17,425) |
| Sale of repossessed assets | 1,857 | 1,857 | |||||
| Total | 10,505 | 15,668 | 10,935 | 23,639 | 24,573 | 24,026 | 109,347 |
| EUR thousand | Finland | Germany | Italy | Norway | Spain | Sweden | Full year 2021 |
|---|---|---|---|---|---|---|---|
| Interest income from purchased loan portfolios | 14,931 | 21,612 | 16,023 | 36,889 | 44,911 | 34,055 | 168,421 |
| Collection above/(below) forecasts | (1,728) | (1,223) | (272) | (5,932) | (1,605) | (7,107) | (17,868) |
| NPV of changes in collection forecasts | (3,817) | (229) | (684) | (2,728) | (14,589) | (22,098) | (44,146) |
| Net gain/(loss) purchased loan portfolios | (5,546) | (1,452) | (956) | (8,660) | (16,194) | (29,206) | (62,013) |
| Sale of repossessed assets | 3,018 | 3,018 | |||||
| Total | 9,385 | 20,160 | 15,067 | 28,230 | 31,734 | 4,849 | 109,426 |
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Balance at start of period | 1,154,509 | 1,104,079 | 1,095,789 | 1,124,699 | 1,124,699 |
| Acquisitions during the period 3) | 68,579 | 32,016 | 195,037 | 60,454 | 113,979 |
| Collection | (68,627) | (59,275) | (202,906) | (191,634) | (254,949) |
| Interest income from purchased loan portfolios | 47,586 | 41,238 | 137,127 | 124,915 | 168,421 |
| Net gain/(loss) purchased loan portfolios 1) | (2,405) | (13,305) | (5,463) | (17,425) | (62,013) |
| Repossession of secured NPL | (200) | (81) | (684) | (723) | (845) |
| Deliveries on forward flow contracts | - | (245) | (409) | (1,221) | (1,221) |
| Disposals 1) | - | - | - | - | (193) |
| Translation difference | (7,474) | (2,360) | (26,522) | 3,002 | 7,911 |
| Balance at end of period | 1,191,969 | 1,102,066 | 1,191,969 | 1,102,066 | 1,095,789 |
| Payments during the period for investments in purchased debt amounted to EUR 2) |
70,452 | 28,006 | 196,984 | 63,847 | 115,402 |
1) Gain on disposals is netted in P&L as 'Net gain/(loss) purchased loan portfolios'
2) Payments during the year will not correspond to credit impaired acqusitions during the year due to deferred payments
3) Reconciliation of credit impaired acquisitions during the period;
| Nominal value acquired portfolios | 658,936 | 166,581 | 1,886,569 | 218,528 | 827,810 |
|---|---|---|---|---|---|
| Expected credit losses at acquisition | (590,357) | (134,565) | (1,691,533) | (158,074) | (713,831) |
| Credit impaired acquisitions during the period | 68,579 | 32,016 | 195,037 | 60,454 | 113,979 |
For an elaborate description of Axactor's accounting principles for purchased debt, see note 2.12.1, and for a description of revenue recognition and fair value estimation, see note 4, in the Group's Annual Report for the Financial Year 2021.
Non-performing loans consist of portfolios of delinquent consumer debts purchased significantly below nominal value, reflecting incurred and expected credit losses, and thus defined as credit impaired. NPLs are recognized at fair value at the date of purchase. Since the loans are measured at fair value, which includes an estimate of future credit losses, no allowance for credit loss is recorded in the consolidated balance sheet on the day of acquisition of the loans. The loans are subsequently measured at amortized cost according to a credit adjusted effective interest rate.
Since the delinquent consumer debts are a homogenous group, the future cash flows are projected on a portfolio basis except for secured portfolios, for which cash flows are projected on a collateral asset basis.
The carrying amount of each portfolio is determined by projecting future cash flows discounted to present value using the credit adjusted effective interest rate as at the date the portfolio was acquired. The total cash flows (both principal and interest) expected to be collected on purchased credit impaired loans are regularly reviewed and updated in line with expectation on an array of economic factors and conditions that will be experienced over time. Changes in expected cash flow are adjusted in the carrying amount and are recognized in profit or loss as income or expense in 'Net gain/(loss) purchased loan portfolios'. Interest income is recognized using a credit adjusted effective interest rate, included in 'Interest income from purchased loan portfolios'.
The majority of the non-performing loans are unsecured. Only a small part of the loans, approximately 5% of the book value of the loans, is secured by a property object.
| EUR thousand | Book value | ||
|---|---|---|---|
| Market | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Finland | 119,089 | 116,902 | 111,841 |
| Germany | 167,251 | 124,680 | 131,059 |
| Italy | 143,319 | 113,950 | 111,348 |
| Norway | 245,313 | 245,732 | 249,439 |
| Spain | 309,587 | 244,064 | 264,034 |
| Sweden | 207,411 | 256,738 | 228,068 |
| Total | 1,191,969 | 1,102,066 | 1,095,789 |
The estimation of future cash flow is affected by several factors, including general macro factors, market specific factors, portfolio specific factors and internal factors. Axactor considers relevant macro factors and market specific factors when estimating future cash flow but not as direct input generating output in the forecast models. Portfolio specific factors and internal factors are considered to affect the estimation of future cash flow significantly more than changes in general macro factors and market specific factors.
Axactor has incorporated into the estimated remaining collection (ERC) the effect of the economic factors and conditions that is expected to influence collections going forward. An analysis of the effects of historical crisis like the financial crisis in 2008 and the experience on collections of the Covid-19 over the last years has formed the basis for the current ERC. The ERC table is included in note 2.
| EUR thousand | Currency | Facility limit |
Nominal value |
Treasury bonds |
Capitalized loan fees |
Accrued interest |
Carrying amount, EUR |
Interest coupon | Maturity |
|---|---|---|---|---|---|---|---|---|---|
| Facility | |||||||||
| Bond ACR02 (ISIN: NO0010914666) | EUR | 200,000 | (27,950) | (2,546) | 2,678 | 172,183 3m EURIBOR+700bps | 12.01.2024 | ||
| Bond ACR03 (ISIN: NO0011093718) | EUR | 300,000 | (18,950) | (3,074) | 741 | 278,718 3m EURIBOR+535bps 15.09.2026 | |||
| Total bond loan | 500,000 | (46,900) | (5,619) | 3,419 | 450,900 | ||||
| Revolving credit facility DNB/Nordea | EUR | 146,169 | (5,053) | 56 | 141,172 | EURIBOR+ margin | 22.12.2023 | ||
| (multiple currency facility) | NOK | 117,393 | 117,393 | NIBOR+ margin | 22.12.2023 | ||||
| SEK | 178,894 | 178,894 | STIBOR+ margin | 22.12.2023 | |||||
| Total credit facilities | 545,000 | 442,457 | (5,053) | 56 | 437,459 | ||||
| Total borrowings at end of period | 942,457 | (46,900) | (10,672) | 3,474 | 888,359 | ||||
| Allocated to continuing operations: | 875,493 | ||||||||
| Allocated to discontinued operations: |
12,866 | ||||||||
| whereof: | |||||||||
| Non-current | 884,885 | ||||||||
| Allocated to continuing operations: | 872,019 | ||||||||
| Allocated to discontinued operations: |
12,866 | ||||||||
| Current | 3,474 | ||||||||
| Allocated to continuing operations: | 3,474 | ||||||||
| Allocated to discontinued operations: |
- | ||||||||
| of which in currency: | |||||||||
| NOK | 117,393 | ||||||||
| SEK | 178,894 | ||||||||
| EUR | 592,072 | ||||||||
All borrowings in discontinued operations are denominated in EUR.
| EUR thousand | Bond loan | Credit facilities | Total Borrowings |
|---|---|---|---|
| Balance at 1 Jan | 495,193 | 343,063 | 838,256 |
| Proceeds from loans and borrowings | - | 260,080 | 260,080 |
| Repayment of loans and borrowings | (46,900) | (150,553) | (197,453) |
| Loan fees | - | (82) | (82) |
| Total changes in financial cash flow | (46,900) | 109,444 | 62,544 |
| Change in accrued interest | (405) | 132 | (273) |
| Amortization capitalized loan fees | 3,012 | 3,966 | 6,978 |
| Currency translation differences | - | (19,145) | (19,145) |
| Total borrowings at end of period | 450,900 | 437,459 | 888,359 |
| Allocated to continuing operations: | 875,493 | ||
| Allocated to discontinued operations: | 12,866 |
| Total | Estimated future cash flow within | ||||||
|---|---|---|---|---|---|---|---|
| EUR thousand | Currency | Carrying amount |
estimated future cash flow |
6 months or less | 6-12 months | 1-2 years | 2-5 years |
| Bond ACR02 (ISIN: NO0010914666) | EUR | 172,183 | 189,664 | 7,045 | 7,045 | 175,573 | - |
| Bond ACR03 (ISIN: NO0011093718) | EUR | 278,718 | 354,573 | 9,190 | 9,190 | 18,381 | 317,811 |
| Total bond loans | 450,900 | 544,236 | 16,236 | 16,236 | 193,953 | 317,811 | |
| Revolving credit facility DNB/Nordea (multiple currency facility) |
EUR/NOK/SEK | 437,460 | 480,588 | 11,369 | 11,369 | 457,850 | - |
| Total credit facilities | 437,460 | 480,588 | 11,369 | 11,369 | 457,850 | - | |
| Total borrowings at end of period | 888,359 | 1,024,824 | 27,605 | 27,605 | 651,804 | 317,811 | |
| Allocated to continuing operations: | 875,493 | ||||||
| Allocated to discontinued operations: |
12,866 |
The maturity calculation is made under the assumption that no new portfolios are acquired, and the revolving credit facility draw is constant to maturity date.
Bond ACR02 (ISIN NO 0010914666) was placed at 3m EURIBOR +7.00% interest, with maturity date 12 January 2024.
The bond is listed on Oslo Børs.
The following financial covenants apply:
Bond ACR03 (ISIN NO 0011093718) was placed at 3m EURIBOR +5.35% interest, with maturity date 15 September 2026.
The bond is listed on Oslo Børs.
The following financial covenants apply:
During the third quarter of 2022 the Group has repurchased part of the outstanding bonds. At the end of the third quarter the Group holds treasury bonds with a nominal value of EUR 46.9 million, split between EUR 18.9 million in ACR03 (ISIN NO 0011093718) and EUR 28.0 million in ACR02 (ISIN NO 0010914666).
The revolving credit facility consists of EUR 545 million in a multicurrency facility, with an additional EUR 75 million accordion option. The loan carries a variable interest rate based on the interbank rate in each currency with a margin.
The following financial covenants apply:
The maturity date for the facility is 22 December 2023.
All material subsidiaries of the Group are guarantors and have granted a share pledge and bank account pledge as part of the security package for this facility. ReoLux Holding Sarl is not part of the agreement nor the security arrangement.
All leases are related to continuing operations.
| EUR thousand | Buildings | Vehicles | Other | Total |
|---|---|---|---|---|
| Right of use assets at 1 Jan 2021 | 3,949 | 797 | 80 | 4,826 |
| New leases and lease modifications | 2,541 | (36) | 41 | 2,547 |
| Depreciation of the year | (1,787) | (257) | (76) | (2,120) |
| Disposals | (573) | (84) | (4) | (661) |
| Currency exchange effects | 2 | 1 | - | 2 |
| Right of use assets at 30 Sep 2021 | 4,132 | 421 | 41 | 4,594 |
| New leases and lease modifications | 6,792 | 143 | 10 | 6,945 |
| Depreciation of the year | (717) | (89) | (4) | (809) |
| Disposals | 89 | - | - | 89 |
| Currency exchange effects | (49) | - | - | (50) |
| Right of use assets at 31 Dec 2021 | 10,247 | 475 | 46 | 10,768 |
| New leases and lease modifications | 3,945 | 279 | - | 4,223 |
| Depreciation of the period | (1,949) | (249) | (10) | (2,208) |
| Disposals | (298) | (3) | - | (301) |
| Currency exchange effects | (266) | (3) | (3) | (271) |
| Right of use assets at 30 Sep 2022 | 11,679 | 500 | 33 | 12,211 |
| Remaining lease term | 0-9 years | 0-3 years | 3 years | |
| Depreciation method | Linear | Linear | Linear | |
| 5,086 |
|---|
| 8,812 |
| (2812) |
| (35) |
| 11,051 |
| 2,185 |
| 8,866 |
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
|---|---|---|---|
| Undiscounted lease liabilities and maturity of cash outflow | |||
| < 1 year | 3,400 | 1,990 | 2,717 |
| 1-2 years | 3,060 | 1,326 | 2,511 |
| 2-3 years | 2,670 | 860 | 2,065 |
| 3-4 years | 2,444 | 559 | 1,821 |
| 4-5 years | 1,258 | 456 | 1,800 |
| > 5 years | 1,675 | 125 | 2,100 |
| Total undiscounted lease liabilities, end of period | 14,507 | 5,316 | 13,015 |
| Discount element | (1,936) | (493) | (1,964) |
| Total discounted lease liabilities, end of period | 12,570 | 4,823 | 11,051 |
Changes in the forward flow agreements is shown below. For additional information, see Note 2.12.2 in Group Annual Report for the Financial Year 2021.
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
|---|---|---|---|
| Balance at 1 Jan | (409) | (834) | (834) |
| Deliveries | 409 | 1,221 | 1,221 |
| Value change | - | (374) | (782) |
| Translation difference | - | (14) | (14) |
| Balance at period end | - | - | (409) |
The changes in forward flow derivatives is included in 'Other current assets' and 'Other current liabilities' in the consolidated statement of financial position;
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
|---|---|---|---|
| Fair value of forward flow commitments (liability) | - | - | (409) |
| Balance at period end | - | - | (409) |
On 21 April 2022, the parent company in the Axactor Group converted form from Societas Europaea company (SE) to a Norwegian public limited liability company (ASA) and converted the share capital from euro to Norwegian kroner. A bonus issue was carried out on the same day, whereby NOK 2,126,326 (EUR 218,961) was transferred from unrestricted equity to share capital. The share capital of Axactor ASA as of 30 Sep 2022 was NOK 1,537,920,412 (EUR 158,368,902) consisting of 302,145,464 ordinary shares at NOK 5.09 per share.
| Number of shares | Share capital (EUR) |
|
|---|---|---|
| At 31 Dec 2020 | 185,395,464 | 97,040,286 |
| New share issues, Jan | 50,000,000 | 26,171,159 |
| New share issues, Jan | 40,000,000 | 20,936,928 |
| New share issues, Mar | 26,750,000 | 14,001,570 |
| At 31 Dec 2021 | 302,145,464 | 158,149,942 |
| Bonus issue, Apr | 218,961 | |
| At 30 Sep 2022 | 302,145,464 | 158,368,902 |
| Name | Shareholding | % Share |
|---|---|---|
| Geveran Trading Co Ltd | 140,784,692 | 46.6% |
| Torstein Ingvald Tvenge | 10,000,000 | 3.3% |
| Ferd AS | 7,864,139 | 2.6% |
| Skandinaviska Enskilda Banken AB | 5,279,467 | 1.8% |
| Skandinaviska Enskilda Banken AB | 4,500,000 | 1.5% |
| Verdipapirfondet Nordea Norge Verdi | 4,454,162 | 1.5% |
| Nordnet Livsforsikring AS | 2,390,364 | 0.8% |
| Endre Rangnes | 2,017,000 | 0.7% |
| Gvepseborg AS | 2,009,694 | 0.7% |
| Stavern Helse og Forvaltning AS | 2,000,000 | 0.7% |
| Nordnet Bank AB | 1,821,555 | 0.6% |
| Alpette AS | 1,661,643 | 0.5% |
| Verdipapirfondet Nordea Avkastning | 1,535,709 | 0.5% |
| Klotind AS | 1,532,704 | 0.5% |
| Velde Holding AS | 1,500,000 | 0.5% |
| Masani AS | 1,400,000 | 0.5% |
| Verdipapirfondet Nordea Kapital | 1,255,847 | 0.4% |
| David Martin Ibeas | 1,177,525 | 0.4% |
| Andres Lopez Sanchez | 1,177,525 | 0.4% |
| Latino Invest AS | 1,040,000 | 0.3% |
| Total 20 largest shareholders | 195,402,026 | 64.7% |
| Other shareholders | 106,743,438 | 35.3% |
| Total number of shares | 302,145,464 | 100% |
| Total number of shareholders | 10,008 |
| Name | Shareholding | % Share |
|---|---|---|
| Latino Invest AS 1) | 1,040,000 | 0.3% |
| Johnny Tsolis Vasili 1)4) | 670,000 | 0.2% |
| Terje Mjøs Holding AS 3) | 500,000 | 0.2% |
| Robin Knowles 2) | 352,921 | 0.1% |
| Vibeke Ly 2) | 203,750 | 0.1% |
| Arnt Andre Dullum 2) | 162,000 | 0.1% |
| Nina Mortensen 2) | 160,000 | 0.1% |
| Kyrre Svae 2) | 150,000 | 0.0% |
| Brita Eilertsen 3) | 19,892 | 0.0% |
1) CEO/Related to the CEO of Axactor ASA
2) Member of the Executive Management Team of Axactor
3) Member of the Board of Directors of Axactor / controlled by member of the Board of Directors of Axactor
4) Holds 300 000 call options that will be settled in cash on 22 June 2023
The Group secured 100% of the shares in C.R. Service - Credit Recovery Service S.r.l (CRS) on 26 October 2021 and the transaction was closed 3 January 2022.
CRS is an Italian debt collection agency, managed from the headquarter in Grosseto (Tuscany) and has a contact center in Milazzo (Sicily) with a total of 155 employees. After the transaction Axactor has a strong footprint with 279 employees in Italy. CRS is a top-5 independent 3PC-player in the Italian bank and finance segment. The acquisition supports the Group's strategy of strengthening the position in existing countries, improving capabilities on 3PC and preparing for post-pandemic volumes and new signed contracts in Italy.
The purchase price allocation identifies a fair value of the equity of EUR 0.7 million, the residual value of the transferred consideration, EUR 6.3 million, is allocated to goodwill. All goodwill in the acquisition is related to CRS' 3PC business. The total amount of goodwill recognized in the period that is expected to be deductible for tax purposes is nil. The Group has recognized a provision per 3 January 2022 of EUR 2.6 million related to three contingent considerations. The payments are contingent upon retention and financial performance.
The table below discloses the impact from the transaction effective from 3 January 2022.
| 2022 | |
|---|---|
| EUR thousand | CRS |
| Date of acquisition | 3 Jan 2022 |
| Acquired part of company | 100% |
| Purchase price | 7,033 |
| - Whereof cash consideration | 4,433 |
| - Whereof contingent consideration | 2,600 |
| Assets | |
| Deferred tax assets | 103 |
| Other intangible fixed assets | 15 |
| Leases | 990 |
| Other tangible assets | 50 |
| Current receivables | 989 |
| Cash and cash equivalents | 1,348 |
| Total assets | 3,495 |
| Liabilities | |
| Non-current interest bearing debt | 67 |
| Deferred tax liabilities | 265 |
| Trade payables | 256 |
| Lease liabilities | 1,095 |
| Other short-term liabilities | 1,105 |
| Total liabilities | 2,788 |
| Total net assets acquired | 707 |
| Identified goodwill | 6,326 |
| Cash consideration | 4,433 |
| Less: cash and cash equivalent balances acquired | 1,348 |
| Net cash outflow arising on acquisition | 3,085 |
On 15 December 2021 the Board resolved to dispose of the Group's real estate owned (REO) operating segment. The REO segment consisted of portfolios of purchased real estate and repossessed assets from secured non-performing loans. In the first quarter of 2022, both portfolios of purchased real estate and repossessed assets from secured non-performing loans were presented as discontinued operations in line with the Board's resolution. In the second quarter of 2022, it was resolved that it is only the portfolios of purchased real estate that shall be classified as discontinued operations. Assets repossessed from secured non-performing loans prior to 2022 are thus presented as continuing operations, and the Group will also continue with repossessions from secured non-performing loans going forward.
The disposal of portfolios of purchased real estate is consistent with the Group's long-term policy to focus its activities on the Group's other businesses. These operations, which are expected to be sold within 12 months, have been classified as a disposal group held for sale and presented separately in the statement of financial position. As per 30 Sep 2022, the Group is still pursuing a buyer and expects the disposal group to be sold within year end.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between continuing operations and discontinued operations are eliminated. The elimination of the intragroup transactions seeks to portray the results of the continuing operations after the disposal. The discontinued operation has intragroup debt related to their operations. To seek to portray the results of the continuing operations after disposal, the intragroup receivable with corresponding interest income related to discontinued operations is eliminated within continuing operations. The same applies for intragroup debt and corresponding interest expense, taking minority interest into account and capped according to the cash flow the parent company expects to receive from the net asset value in the discontinued operations. The rest of the intragroup debt is eliminated within discontinued operations. A part of the Group's total debt and interest expense are hence allocated to discontinued operations. The net assets directly associated with the assets classified as held for sale represents minority interests in the discontinued operations.
The results of the discontinued operations, which have been included in net profit/(loss) after tax, were as follows:
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Other operating revenue | 2,269 | 7,790 | 11,134 | 29,301 | 36,828 |
| Total income | 2,269 | 7,790 | 11,134 | 29,301 | 36,828 |
| Cost of REOs sold, incl impairment | (3,049) | (9,087) | (13,481) | (33,017) | (48,379) |
| Operating expenses | (598) | (1,210) | (2,202) | (3,964) | (5,215) |
| Total operating expenses | (3,647) | (10,297) | (15,684) | (36,980) | (53,593) |
| EBITDA | (1,378) | (2,507) | (4,550) | (7,679) | (16,765) |
| Amortization and depreciation | - | (4) | - | (34) | (38) |
| Operating profit | (1,378) | (2,511) | (4,550) | (7,713) | (16,803) |
| Financial expenses | (232) | (649) | (889) | (3,355) | (3,796) |
| Net financial items | (232) | (649) | (889) | (3,355) | (3,796) |
| Profit/(loss) before tax | (1,610) | (3,159) | (5,439) | (11,069) | (20,599) |
| Tax (expense) | - | - | - | - | |
| Net profit/(loss) after tax | (1,610) | (3,159) | (5,439) | (11,069) | (20,599) |
| Attributable to: | |||||
| Non-controlling interests | (947) | (1,875) | (3,174) | (6,414) | (12,242) |
| Shareholders of the parent company | (662) | (1,284) | (2,264) | (4,655) | (8,357) |
| Earnings per share: basic and diluted | (0.002) | (0.004) | (0.007) | (0.016) | (0.028) |
The major classes of assets and liabilities comprising the operations classified as held for sale are as follows:
| EUR thousand | 30 Sep 2022 |
|---|---|
| Current assets | |
| Stock of secured assets | 13,249 |
| Accounts receivable | 222 |
| Other current assets | 720 |
| Cash and cash equivalents | 2,554 |
| Total current assets | 16,746 |
| Assets classified as held for sale | 16,746 |
| Non-current liabilities | |
| Interest bearing debt | 12,866 |
| Total non-current liabilities | 12,866 |
| Current liabilities | |
| Other current liabilities | 1,343 |
| Total current liabilities | 1,343 |
| Liabilities directly associated with assets classified as held for sale | 14,209 |
| Net assets directly associated with assets classified as held for sale | 2,537 |
The net cash flows incurred by the operations classified as held for sale are as follows:
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Net cash flow from operating activities | 1,671 | 6,580 | 8,932 | 25,338 | 28,535 |
| Net cash flow from investing activities | - | - | - | - | - |
| Net cash flow from financing activities | (1,908) | (7,882) | (10,895) | (30,872) | (33,151) |
| Total net cash flow | (237) | (1,302) | (1,963) | (5,534) | (4,616) |
| APM | Definition | Purpose of use | Reconciliation IFRS |
|---|---|---|---|
| Gross revenue | Total income plus portfolio amortizations and revaluations, and change in fair value of forward flow commitments |
To review the revenue before split into interest and amortization (for own portfolios) |
Total income from consolidated statement of profit or loss plus portfolio amortizations and revaluations in the consolidated statement of cash flows and change in fair value of forward flow commitments |
| Cash and cash equivalents | Consolidated cash and cash equivalents, from continuing and discontinued operations |
To reflect the Group's total cash position |
Cash and cash equivalents from the consolidated statement of financial position plus cash and cash equivalents from discontinued operations according to note 12 |
| Cash EBITDA from continuing operations |
EBITDA adjusted for change in fair value of forward flow commitments, portfolio amortizations and revaluations, repossessed assets cost of sale and impairment, and calculated cost of share option program |
To reflect cash from continuing operating activities, excluding timing of taxes paid and movement in working capital |
EBITDA from continuing operations (total income minus total operating expenses) in consolidated statement of profit or loss adjusted for specified elements from the consolidated statement of cash flows |
| Cash EBITDA | Cash EBITDA from continuing operations plus EBITDA from discontinued operations, adjusted for REO cost of sale, including impairment |
To reflect cash from continuing and discontinued operating activities, excluding timing of taxes paid and movement in working capital |
EBITDA from continuing operations (total income minus total operating expenses) in consolidated statement of profit or loss plus EBITDA from discontinued operations according to note 12, adjusted for specified elements from the consolidated statement of cash flows |
| Estimated remaining collection (ERC) |
Estimated remaining collection express the expected future cash collection on own portfolios (NPLs) in nominal values, over the next 180 months. The ERC does not include sale of repossessed assets if the assets are already repossessed |
ERC is a standard APM within the industry with the purpose to illustrate the future cash collection including estimated interest income and opex |
Purchased debt portfolios from the consolidated statement of financial position plus estimated opex for future collection at time of acquisition and estimated discounted gain |
| Net interest bearing debt (NIBD) |
Net interest bearing debt means the aggregated amount of interest bearing debt allocated to both continuing and discontinued operations, less aggregated amount of unrestricted cash and cash equivalents, on a consolidated basis |
NIBD is used as an indication of the Group's ability to pay off all of its debt |
Non-current interest bearing debt, current portion of interest bearing debt and unrestricted cash and cash equivalents from the consolidated statement of financial position and as allocated to discontinued operations according to note 12, adjusted for capitalized loan fees and accrued interest according to note 8 |
| Return on equity (ROE), excluding non-controlling interests, annualized |
Net consolidated result from continuing and discontinued operations attributable to shareholders divided by average equity for the period attributable to shareholders, annualized |
Measures the profitability in relation to shareholders' equity |
Net profit/(loss) after tax attributable to shareholders of the parent company from the consolidated statement of profit or loss and equity attributable to shareholders from the consolidated statement of changes in equity |
| Return on equity (ROE), continuing operations, annualized |
Net profit/(loss) after tax from continuing operations divided by average total equity for the period, annualized |
Measures the profitability in relation to total equity. This APM has replaced 'Return on equity, including non-controlling interests, annualized' to measure the profitability in relation to continuing operations |
Net profit/(loss) after tax from continuing operations from the consolidated statement of profit or loss and total equity from the consolidated statement of changes in equity |
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 1) | 30 Sep 2022 | 30 Sep 2021 1) | Full year 2021 1) |
| Total income | 58,858 | 38,941 | 176,690 | 144,321 | 158,298 |
| Portfolio amortizations and revaluations | 23,446 | 31,342 | 71,242 | 84,144 | 148,542 |
| Change in fair value of forward flow commitments | - | - | - | 374 | 782 |
| Gross revenue | 82,304 | 70,283 | 247,932 | 228,838 | 307,622 |
| For the quarter end | Year to date | |||||
|---|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 1) | 30 Sep 2022 | 30 Sep 2021 1) | Full year 2021 1) | |
| Total income | 58,858 | 38,941 | 176,690 | 144,321 | 158,298 | |
| Total operating expenses | (28,816) | (26,031) | (88,918) | (86,344) | (117,800) | |
| EBITDA from continuing operations | 30,041 | 12,910 | 87,773 | 57,976 | 40,498 | |
| Change in working capital related to forward flow commitments | - | - | - | 374 | 782 | |
| Calculated cost of share option program | 116 | (7) | 366 | 161 | 180 | |
| Portfolio amortizations and revaluations | 23,446 | 31,342 | 71,242 | 84,144 | 148,542 | |
| Cost of repossessed assets sold, incl impairment | 276 | (17) | 1,203 | 582 | 2,136 | |
| Cash EBITDA from continuing operations | 53,880 | 44,228 | 160,583 | 143,237 | 192,138 | |
| EBITDA from discontinued operations | (1,378) | (2,507) | (4,550) | (7,679) | (16,765) | |
| Cost of REOs sold, incl impairment | 3,049 | 9,087 | 13,481 | 33,017 | 48,379 | |
| Cash EBITDA | 55,551 | 50,808 | 169,514 | 168,574 | 223,752 | |
| Taxes paid | (2,618) | (10) | (5,470) | (434) | (3,261) | |
| Change in working capital, excl. forward flow commitments | 91 | 3,663 | 163 | 10,473 | 4,209 | |
| Cash flow from operating activities before NPL and REO investments |
53,025 | 54,461 | 164,208 | 178,613 | 224,700 |
1) Comparative figures have been re-presented due to a discontinued operation, see note 12.
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Purchased debt portfolios | 1,191,969 | 1,102,066 | 1,191,969 | 1,102,066 | 1,095,789 |
| Estimated opex for future collection at time of acquisition | 332,935 | 295,786 | 332,935 | 295,786 | 296,290 |
| Estimated discounted gain | 842,330 | 732,567 | 842,330 | 732,567 | 748,463 |
| Estimated remaining collection, NPL | 2,367,234 | 2,130,419 | 2,367,234 | 2,130,419 | 2,140,543 |
| For the quarter end | Year to date | |||||
|---|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 | |
| Cash and cash equivalents from financial position | 17,433 | 36,771 | 17,433 | 36,771 | 38,155 | |
| Cash and cash equivalents, discontinued operations | 2,554 | 2,554 | ||||
| Cash and cash equivalents | 19,988 | 36,771 | 19,988 | 36,771 | 38,155 |
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Non-current portion of interest bearing debt from financial position |
872,019 | 661,554 | 872,019 | 661,554 | 834,411 |
| Current portion of interest bearing debt from financial position | 3,474 | 152,568 | 3,474 | 152,568 | 3,845 |
| Interst bearing debt allocated to discontinued operations | 12,866 | 12,866 | |||
| Total interest bearing debt | 888,359 | 814,122 | 888,359 | 814,122 | 838,256 |
| Capitalized loan fees | (10,672) | (19,344) | (10,672) | (19,344) | (17,566) |
| Accrued interest | 3,474 | 4,030 | 3,474 | 4,030 | 3,845 |
| Cash and cash equivalents from financial position | 17,433 | 36,771 | 17,433 | 36,771 | 38,155 |
| Cash and cash equivalents, discontinued operations | 2,554 | - | 2,554 | - | - |
| Net interest bearing debt (NIBD) | 875,569 | 792,666 | 875,569 | 792,666 | 813,821 |
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Net profit/(loss) after tax attributable to shareholders of the parent company |
9,653 | (3,442) | 27,347 | 2,275 | (32,797) |
| Average equity for the period related to shareholders of the parent company |
402,483 | 414,584 | 395,283 | 385,870 | 384,751 |
| Return on equity, excluding non-controlling interests, annualized | 9.5% | (3.3%) | 9.3% | 0.8% | (8.5%) |
| For the quarter end | Year to date | ||||
|---|---|---|---|---|---|
| EUR thousand | 30 Sep 2022 | 30 Sep 2021 | 30 Sep 2022 | 30 Sep 2021 | Full year 2021 |
| Net profit/(loss) after tax from continuing operations | 10,168 | (2,283) | 30,284 | 6,614 | (25,393) |
| Average total equity for the period | 399,582 | 425,118 | 393,806 | 414,005 | 407,454 |
| Return on equity, continuing operations, annualized | 10.1% | (2.1%) | 10.3% | 2.1% | (6.2%) |
| Active forecast | Forecast of estimated remaining collection on NPL portfolios |
|---|---|
| Board | Board of directors |
| Cash EBITDA margin | Cash EBITDA as a percentage of gross revenue |
| Chair | Chair of the board of directors |
| Contribution margin (%) | Total operating expenses (excluding SG&A, IT and corporate cost) as a percentage of total income |
| Collection performance | Gross collection on NPL portfolios in relation to active forecast, including sale of repossessed assets in relation to book value |
| Cost-to-collect | Cost to collect is calculated as segment operating expenses plus a pro rata allocation of unallocated operating expenses and unallocated depreciation and amortization. The segment operating expense is used as allocation key for the unallocated costs |
| Equity ratio | Total equity as a percentage of total equity and liabilities |
| Forward flow agreement | Agreement for future acquisitions of NPLs at agreed prices and delivery |
| Gross IRR | The credit adjusted interest rate that makes the net present value of ERC equal to NPL book value, calculated using monthly cash flows over a 180-months period |
| Group | Axactor ASA and all its subsidiaries |
| NPL amortization rate | NPL amortization divided by collection on own NPL portfolios |
| NPL cost-to-collect ratio | NPL cost to collect divided by NPL total income excluding NPV of changes in collection forecasts and change in fair value of forward flow commitments |
| One off portfolio acquisition | Acquisition of a single portfolio of NPLs |
| Opex | Total operating expenses |
| Recovery rate | Portion of the original debt repaid |
| Replacement capex | Acquisitions of new NPLs to keep the same book value of NPLs from last period |
| Repossession | Taking possession of property due to default on payment of loans secured by property |
| Repossessed assets | Property repossessed from secured non-performing loans |
| SG&A, IT and corporate cost | Total operating expenses for overhead functions, such as HR, finance and legal etc |
| Solution rate | Accumulated paid principal amount for the period divided by accumulated collectable principal amount for the period. Usually expressed on a monthly basis |
| 3PC | Third-party collection |
|---|---|
| AGM | Annual general meeting |
| APM | Alternative performance measures |
| ARM | Accounts receivable management |
| B2B | Business to business |
| B2C | Business to consumer |
| BoD | Board of Directors |
| BS | Consolidated statement of financial position (balance sheet) |
| CF | Consolidated statement of cash flows |
| CGU | Cash generating unit |
| CM | Contribution margin |
| D&A | Depreciation and amortization |
| Dopex | Direct operating expenses |
| EBIT | Operating profit/Earnings before interest and tax |
| EBITDA | Earnings before interest, tax, depreciation and amortization |
| ECL | Expected credit loss |
| EGM | Extraordinary general meeting |
| EPS | Earnings per share |
| ERC | Estimated remaining collection |
| ESG | Environmental, social and governance |
| ESOP | Employee stock ownership plan |
| FSA | The financial supervisory authority |
| FTE | Full time equivalent |
| GHG | Greenhouse gas emissions |
| IFRS | International financial reporting standards |
| LTV | Loan to value |
| NCI | Non-controlling interests |
| NPL | Non-performing loan |
| OB | Outstanding balance, the total amount Axactor can collect on claims under management, including outstanding principal, interest and fees |
| OCI | Consolidated statement of other comprehensive income |
| P&L | Consolidated statement of profit or loss |
| PCI | Purchased credit impaired |
| PPA | Purchase price allocations |
| REO | Real estate owned |
| ROE | Return on equity |
| SDG | Sustainable development goal |
| SG&A | Selling, general & administrative |
| SPV | Special purpose vehicle |
| VIU | Value in use |
| VPS | Verdipapirsentralen/Norwegian central securities depository |
| WACC | Weighted average cost of capital |
| WAEP | Weighted average exercise price |
| Interim report - Fourth quarter of 2022 | 17 Feb, 2023 |
|---|---|
| Annual accounts and annual report 2022 | 31 Mar, 2023 |
0277 Oslo Norway
The shares of Axactor ASA (publ.) are listed on the Oslo Stock Exchange, ticker ACR.
Cautionary Statement: Statements and assumptions made in this document with respect to Axactor ASA's ("Axactor") current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Axactor. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where Axactor operates; (ii) changes relating to the statistic information available in respect of the various debt collection projects undertaken; (iii) Axactor's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential partners, ventures and alliances, if any; (v) currency exchange rate fluctuations between the euro and the currencies in other countries where Axactor or its subsidiaries operate. In the light of the risks and uncertainties involved in the debt collection business, the actual results could differ materially from those presented and forecast in this document. Axactor assumes no unconditional obligation to immediately update any such statements and/or forecasts.
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