Axactor SE

Quarterly Report • Oct 25, 2019

Q32019 Report

25 October, 2019

Highlights

Third quarter of 2019

• · Axactor continued its profitable growth journey, with high growth in the NPL segment supporting a 55% year-on-year increase in gross revenue to EUR 87.3 million. Net revenue increased by 32% to EUR 64.3 million.
• · EBITDA doubled to EUR 20.0 million with the EBITDA-margin improving to 31% from 21% in the same period last year, reflecting solid collection performance and high operational leverage. Cash EBITDA increased by 83% to EUR 59.7 million.
• · Net profit amounted to EUR 3.7 million, up from 0.4 million in the third quarter of last year.
• · Axactor invested EUR 85 million in NPL portfolio acquisitions in the quarter, bringing overall capital expenditure for the first nine months to EUR 303 million. Adding estimated investments for the fourth quarter, the 2019 full year investment level is expected to be in the region of EUR 400 million.
• · Two significant new forward flow contracts were signed in Norway during the third quarter. The first builds on an existing client relationship in the Nordics, with an estimated annual volume of EUR 44 million across 2,750 claims within unsecured consumer loans. This contract is for eighteen months, starting in January 2020. The second contract is a combined 3PC and forward flow deal, where Axactor provides 3PC servicing in the initial period prior to acquiring the claims. The contract is for eighteen months, starting in August 2019, with an estimated volume of close to EUR 15 million across 1,500 claims.
• · ERC for the NPL portfolio stood at close to EUR 1.9 billion at the end of September 2019, accounting for 91% of total Group ERC. Remaining ERC for the REO portfolio was EUR 193 million.

Key events after the end of the period

• · Available funds were increased after the end of the reporting period, when the company's two main banks increased a credit line by EUR 150 million to EUR 500 million through establishment of two accordion options of EUR 75 million each. Axactor exercised one of the options in October 2019.
• · In October, Axactor Italy acquired a payment plan portfolio with an outstanding balance of EUR 60 million.

Key Figures Axactor Group

	For the quarter end		YTD
EUR million	30 Sep 2019	30 Sep 2018	30 Sep 2019	30 Sep 2018	Full year 2018
Gross revenue	87.3	56.5	269.3	164.2	238.8
Net revenue	64.3	48.7	210.3	138.9	206.9
EBITDA	20.0	10.0	68.3	26.7	46.3
Cash EBITDA 1)	59.7	32.7	184.0	91.3	136.0
Depreciation and amortization (excl Portfolio Amortization)	-2.6	-1.5	-7.3	-4.3	-6.0
Net financial items	-11.1	-7.7	-36.9	-21.7	-34.1
Tax (expense)	-2.7	-0.4	-9.7	-1.1	-3.8
Net profit/(loss) after tax	3.7	0.4	14.4	-0.4	2.4
Cash and Cash Equivalents, end of period	60.5	112.0	60.5	112.0	67.6
Gross revenue from NPL Portfolios	53.8	25.2	156.3	77.4	117.0
Gross revenue from REO Portfolios	20.2	19.0	70.0	49.5	69.8
Acquired NPL portfolios during the period	85.1	68.7	302.8	133.0	461.9
Acquired REO portfolios during the period	0.0	43.8	0.3	93.7	99.3
Book value of NPL, end of period	964.0	419.1	964.0	419.1	728.8
Book value of REO, end of period	148.1	212.6	148.1	212.6	200.0
Estimated Remaining Collection, NPL	1,876.6	820.9	1,876.6	820.9	1,388.2
Estimated Remaining Collection, REO	192.9	304.2	192.9	304.2	274.5
Interest bearing debt, end of period	874.0	477.4	874.0	477.4	734.4
Number of Employees (FTEs), end of period	1,183	1,023	1,183	1,023	1,040
Price per share, last day of period	17.20	24.93	17.20	24.93	18.65

1) Cash EBITDA is EBITDA adjusted for calculated cost of share option program, portfolio amortisations, revaluations, REO cost of sales and REO impairments

Operations

Axactor has continued to invest in its non-performing loans (NPL) business over the past year, and the ERC of its NPL portfolio has increased by more than EUR 1 billion to almost EUR 1.9 billion at the end of the first nine months 2019. Combined with continued solid collection performance the larger NPL portfolio was the main driver for the 55% year-on-year growth in gross revenue to EUR 87.3 million in the third quarter. Strong growth in the high-margin NPL segment has also supported the increase in EBITDA-margin to 31% from 21% in the third quarter last year, reflecting the significant operational leverage of Axactor's scalable, lean and efficient organization.

NPL – Continued profitable growth

Gross revenue in the NPL segment increased 113% to EUR 53.8 million (25.2), as a result of the investments made through 2018 and 2019 as well as continued solid collection performance on both new and older vintages.

The NPL portfolio investments of EUR 85.1 million in the third quarter compares to EUR 68.7 million in the third quarter last year, and mainly reflects EUR 68.5 million invested under forward flow agreements and acquisition of an unsecured portfolio in Germany. Year to date, the capital expenditure for NPL portfolio acquisitions amounts to EUR 303 million, up from EUR 133 million in the same period last year.

The ERC for the NPL portfolio stood at EUR 1,877 million at the end of the third quarter (821), a 9% increase during the quarter and 35% since the end of 2018. ERC for the coming 12 months is estimated at EUR 238 million, which compares to realized gross revenue of EUR 196 million over the past 12 months. Book value of the NPL portfolio stood at EUR 964 million (419) per the end of September 2019.

The capex figures, ERC, and book values do not include volumes Axactor have not yet taken over under forward flow agreements. Estimated investments under forward flow agreements amount to EUR 61 million for the remainder of 2019 and an additional EUR 61 million for the first three months of 2020. Axactor is discussing combinations of initial 3PC contracts and subsequent forward flow acquisitions with several potential clients.

REO – Asset sales set to unwind the portfolio

Gross revenue from the REO segment amounted to EUR 20.2 million in the third quarter 2019 (19.0), corresponding to 7% year-on-year growth. The increase reflects higher unit sales volumes, whereas the asset mix and a moderate price decline had a dampening effect on the revenue growth.

In accordance with the company strategy, Axactor did not acquire any new REO portfolios in the third quarter 2019 (43.8).

ERC of the REO portfolio stood at EUR 193 million at the end of the third quarter 2019 (304), of which EUR 92 million is expected to be realized over the coming 12 months. The book value of the REO portfolio stood at EUR 148 million (213) per the end of September 2019. The book value was also affected by the company repossessing a small number of secured NPL assets during the quarter.

3PC – Building for the future

With effect from the second quarter 2019, Axactor subordinated its accounts receivable management activities under its third-party collection (3PC) segment.

Gross revenue from 3PC amounted to EUR 12.5 million in the third quarter 2019 (12.3), representing a 1% increase from the third quarter last year.

3PC has a strong position in the Spanish market and is well positioned to grow on cross-border deals in the Nordic region. Axactor is currently sharpening its focus on the bank/finance sector in the Nordics and remains confident that the 3PC growth will pick up again over the coming quarters.

As part of the strategy of maintaining a balanced business mix, a sharpened focus is set on combined deals starting with a 3PC servicing contract before acquiring the remaining claims under a forward flow agreement. Such combined deals will increase the capital light side of Axactor's business, and at the same time remain an attractive way for Axactor's clients to offload their balance sheets.

Organization

Headquartered in Oslo, Norway, Axactor currently operates in six geographical markets; Spain, Norway, Germany, Italy, Sweden and Finland.

Axactor's key growth enablers are People, Systems and Funding, and the company believes it has built a scalable, lean and efficient organization to continue its growth journey going forward.

At the end of September 2019, the company counted 1,183 FTEs compared to 1,040 at the end of 2018.

Axactor has built a flexible, secure, sustainable and efficient business system, with a modern collection system adapted to handle differences between legal frameworks in the individual markets, surrounded by standardized systems through a well-functioning outsourcing model.

Axactor continues working to optimize its collection system further, having launched new and user-friendly debtor portals in Spain, Italy and Sweden during the year, with Norway, Finland and Germany scheduled for launch over the coming two quarters. By the end of

the third quarter, all countries had implemented a standard dialer with a centralized traffic control team in Spain handling both in- and outbound calls, further increasing the efficiency of the call centers.

The company also continues investing in data warehouses and further development of business intelligence systems building on standardized KPIs across the markets.

Axactor's IT and overhead costs are continuously declining as a percentage of revenue. Although the cost structure holds up well in comparison with the competition, the company is currently carrying out cost efficiency programs in Spain and Germany to improve the cost ratios further.

Financials

Gross revenue for the third quarter of 2019 was EUR 87.3 million, an increase of 55% over the third quarter last year. Gross revenues from the NPL segment more than doubled compared to the same quarter last year.

Gross revenues declined by 4% from the seasonally stronger second quarter, as the sequential growth in the NPL segment was counterbalanced by declines in REO and 3PC due to a lower activity level in the summer months.

Net revenue amounted to EUR 64.3 million, an increase of 32% from the third quarter last year and a decline of 11% from the previous quarter. Amortization and revaluation of NPL portfolios amounted to EUR 23.1 million in the third quarter (7.8), compared to EUR 18.8 million in the previous quarter.

Revenues

The NPL segment accounted for EUR 53.8 million (25.2) of total gross revenue in the second quarter, reporting year-on-year growth of 113% as a result of investments made through 2018 and 2019 as well as continued solid collection performance.

As stated in the half-year report the investment and collection profiles pointed towards sequential growth in the second half of the year, and gross revenue from the NPL segment in the third quarter was 7% above the previous quarter.

Gross revenue from the REO segment amounted to EUR 20.2 million in the third quarter (19.0), corresponding to 7% year-on-year growth. Gross revenue declined by 19% from the previous quarter, reflecting both seasonally slower volumes but also a moderate decline in average prices for the remaining REO assets.

ERC for the coming 12 month indicates that average quarterly REO sales are expected at roughly the same level, from a rapidly declining inventory.

The 3PC segment – which includes the accounts receivables management activities with effect from the second quarter – reported gross revenue of EUR 12.5 million in the third quarter (12.3). This was an increase of 1% year-on-year, whereas seasonal effects explain a decline of 22% from the previous quarter.

Operating expenses

Total operating expenses for the third quarter 2019 amounted to EUR 44.2 million (38.7), including REO cost of sales of EUR 16.4 million (14.6). The latter represents reversal of the book value of sold assets.

OPEX declined to 69% of net revenue in the third quarter (79%).

Depreciation and amortization - excluding amortization of NPL portfolios - was EUR -2.6 million (-1.5) for the third quarter, with the increase mainly explained by amortization of leasing contracts under IFRS 16.

Operating results

Total contribution from the business segments amounted to EUR 28.9 million in the third quarter (18.2), down from EUR 35.2 million in the previous quarter. The contribution margin on net revenue was 45% (37%), compared to 49% in the seasonally stronger second quarter.

Contribution from the NPL segment was EUR 22.3 million (11.9), corresponding to 73% margin on the segment net revenue (69%).

Contribution from the REO segment was EUR 1.5 million (2.1), or 7% margin on the segment net revenue (11%).

Contribution from 3PC (including ARM) was EUR 4.3 million (4.1), or 34% margin on the net revenue from the segment (33%).

Reported EBITDA was EUR 20.0 million in the third quarter, a doubling from EUR 10.0 million last year. The EBITDA margin thus improved to 31% from 21% in the same quarter last year, showing the scalability and efficiency of the business model.

The difference between contribution margin and EBITDA comprise unallocated SG&A and IT costs, amounting to EUR 8.8 million (8.1) for the third quarter. Unallocated costs declined to 10% of gross revenue, down from 14% in the third quarter last year.

Cash EBITDA amounted to EUR 59.7 million (32.7) in the third quarter 2019. Cash EBITDA is defined as EBITDA excluding amortization and revaluations of NPL portfolios, REO cost of sales and impairments, and calculated costs related to the share option program.

The increase mainly reflects continued strong cash flow from the NPL segment.

The gross margin – defined as cash EBITDA to gross revenueincreased to 68% in the third quarter (58%).

Operating profit (EBIT) was EUR 17.4 million in the third quarter (8.5).

Net financial items

Total net financial items were a negative EUR 11.1 million for the third quarter (7.7), comprising interest expense on borrowings of EUR 13.4 million (7.0), positive currency effects of EUR 2.8 million (-0.3), and other minor financial items.

The year-on-year increase in interest expense mainly reflects financing of the investments carried out over the past year, and the interest expense was only slightly higher than in the previous quarter.

The positive currency effects mainly reflect unrealized gains from a weakening of NOK and SEK versus EUR, whereof approximately EUR 2 million relates to an internal transfer of a company from a NOK entity to a EUR entity.

Earnings and taxes

Profit before tax was EUR 6.3 million (0.8) for the third quarter 2019, whereas net profit was EUR 3.7 million (0.4). The average tax rate was thus 42% (50%). Although this is an increase from 37% in the previous quarter, the general downward trend is expected to continue over time with a convergence towards a sub-30% average tax rate.

Cash flow

Cash flow from operating activities amounted to EUR 51.6 million (28.7) in the third quarter 2019. The deviation from the cash EBITDA mainly reflect working capital increases of EUR 6.9 million (3.7).

The total amount paid for portfolio acquisitions was EUR 85.8 million (110.0) in the third quarter, and EUR 306.5 million year to date (222.1). During the quarter, two small and old portfolios not considered part of Axactor's core business in Italy were sold. The combined sale value amounted to EUR 0.5 million, realizing a P&L gain of EUR 0.4 million.

Total net cash flow from investments was EUR 87.2 million (112.0) in the third quarter.

Total cash flow from financing activities was EUR 29.7 million (75.5) in the third quarter, mainly reflecting drawdowns on existing and new funding lines.

Total free cash and cash equivalents at the end of the period was EUR 60.5 million (112.0), compared to EUR 67.6 million at the end of 2018.

Equity position

Total equity for the Group was EUR 371.1 million (326.7) at the end of the third quarter 2019, including minority interests of EUR 99.1 million (65.8). Equity increased by EUR 42.9 million in the first nine months of 2019, with a marginal decline in equity ratio to 29% from 30% at the end of 2018.

Capital expenditure and Funding

Axactor invested EUR 85.1 million in portfolio acquisitions in the third quarter of 2019 and EUR 303.2 million in the first nine months.

The investments have been financed through available cash flow from operation and drawdowns on credit facilities.

The estimated capex requirement for already signed forward flow agreements amount to EUR 61 million for the remainder of 2019, and the company expects total portfolio acquisitions in the region of EUR 400 million for the full year.

After the end of the quarter, Axactor's main banking partners DnB and Nordea increased funds available under a revolving credit facility by an additional EUR 150 million, in the form of two accordion options of EUR 75 million each. Axactor executed one of the options in October.

At the same time Nordea joined DnB on equal terms as a lender to Axactor Invest 1, which is an investment vehicle jointly owned with co-investor Geveran Trading.

Including the execution of an additional EUR 75 million accordion option in October, Axactor has increased its funding base by a total of EUR 310 million in 2019. The increase has been in the form of additional bank debt and bond debt, as well as externally provided new equity and loans in Axactor Invest 1. In addition, Axactor has an unactivated accordion option of EUR 75 million that was agreed in October.

Risk

The most important risk and uncertainty factors facing the business in the next accounting period relate to debt collection performance, debt purchase processes, and the price level and timing of asset sales.

Axactor has reduced the total ERC of its REO portfolio by EUR 24 million through sales and reassessments in the third quarter 2019.

Otherwise, the company sees limited changes in its overall risk profile compared with the descriptions in the Annual Report for 2018 and the report for the first half year 2019.

Outlook

Axactor has seen healthy revenue growth throughout 2019, on the back of the investments made through 2018 and 2019. The reported margin improvements reflect good collection performance and the benefits of a scalable, lean and efficient organization and business model, and Axactor overall expects continued solid growth also for the remainder of 2019 and into 2020.

The company continues to see very interesting NPL investment opportunities in its main markets, with high volumes coming to the markets, declining portfolio prices and increasing IRRs. Axactor will continue to deploy capex in NPL portfolios during the fourth quarter of 2019, and expects full year 2019 investments in the region of EUR 400 million.

With the collection platforms and IT systems in place, Axactor has the ability to handle significantly higher volumes.

Responsibility Statement

We confirm that, to the best of our knowledge, the unaudited Financial Statements for first third quarter 2019, which have been prepared in accordance with IFRS as adopted by EU, gives a true and fair view of the Company's assets, liabilities, financial position and results of operations, and that the management report includes a fair review of the information required under the Norwegian account act.

Oslo, 24 October 2019 The Board of Directors

Bjørn Erik Næss Chairman of the Board Lars Erich Nilsen Board member

Merete Haugli Board member

Brita Eilertsen Board member Beate S. Nygårdshaug Board member

Terje Mjøs Board member

Endre Rangnes Chief Executive Officer

Consolidated Statement of Profit and Loss

	For the quarter end			YTD
EUR thousand	Note	30 Sep 2019	30 Sep 2018	30 Sep 2019	30 Sep 2018	Full year 2018
Interest income from purchased loan portfolios	6	35,828	17,781	97,292	52,247	74,536
Net gain/loss purchased loan portfolios	6	-5,089	-385	93	-152	10,599
Other operating revenue		33,523	31,292	112,944	86,780	121,774
Total Revenue	3,4	64,263	48,689	210,329	138,875	206,909
Cost of REO's sold, incl impairment	7	-16,374	-14,598	-56,093	-38,074	-56,438
Personnel expenses operations		-9,597	-7,709	-28,162	-23,770	-32,585
Personnel expenses other		-3,414	-3,893	-14,309	-14,337	-19,548
Operating expenses		-14,849	-12,461	-43,451	-35,959	-52,032
Total operating expense		-44,233	-38,661	-142,015	-112,140	-160,602
EBITDA		20,029	10,028	68,314	26,735	46,306
Amortization and depreciation		-2,625	-1,507	-7,287	-4,323	-6,009
EBIT		17,405	8,521	61,027	22,412	40,298
Financial revenue	5	2,892	21	2,262	395	453
Financial expenses	5	-13,961	-7,741	-39,166	-22,086	-34,591
Net financial items		-11,069	-7,720	-36,904	-21,691	-34,138
Profit/(loss) before tax		6,336	801	24,123	720	6,160
Tax (expense)		-2,679	-401	-9,688	-1,146	-3,770
Net profit/(loss) after tax		3,657	399	14,435	-425	2,390
Net profit/(loss) to Non-controlling interests	5	-801	-866	3,333	-524	-2,103
Net profit/(loss) to equity holders		4,457	1,266	11,102	99	4,492
Earnings per share: basic		0.029	0.008	0.072	0.001	0.029
Earnings per share: diluted		0.025	0.007	0.064	0.001	0.026

Consolidated Statement of Comprehensive Profit and Loss

EUR thousand	For the quarter end		YTD
	30 Sep 2019	30 Sep 2018	30 Sep 2019	30 Sep 2018	Full year 2018
Net profit/(loss) after tax	3,657	399	14,435	-425	2,390
Items that will not be classified subsequently to profit and loss
Remeasurement of pension plans	0	0	0	0	50
Items that may be classified subsequently to profit and loss
Foreign currency translation differences - foreign operations	-5,469	418	-4,906	-478	-2,830
Other comprehensive income/(loss) afer tax	-5,469	418	-4,906	-478	-2,780
Total comprehensive income for the period	-1,812	818	9,529	-903	-390
Attributable to:
Non-controlling interests	-801	-866	3,333	-524	-2,103
Equity holders of the parent company	-1,012	1,684	6,196	-379	1,713

Interim Consolidated Statement of Financial Position

EUR thousand	Note	30 Sep 2019	30 Sep 2018	31 Dec 2018
ASSETS
Intangible non-current assets
Intangible Assets		20,098	19,544	19,170
Goodwill		55,740	54,462	55,577
Deferred tax assets		6,336	4,239	7,564
Tangible non-current assets
Property, plant and equipment		3,000	2,795	2,683
Right-of-use assets	9	5,938	0	0
Financial non-current assets
Purchased debt portfolios	6	963,953	419,108	728,820
Other non-current receivables		295	1,155	293
Other non-current investments		662	170	778
Total non-current assets		1,056,021	501,473	814,885
Current assets
Stock of Secured Assets	7	148,101	212,555	200,009
Accounts Receivable		10,782	7,671	9,459
Other current assets		13,144	8,545	12,774
Restricted cash		2,611	54	3,184
Cash and Cash Equivalents		60,481	112,018	67,593
Total current assets		235,119	340,844	293,018
TOTAL ASSETS		1,291,140	842,317	1,107,903

Interim Consolidated Statement of Financial Position

EUR thousand	Note	30 Sep 2019	30 Sep 2018	31 Dec 2018
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share Capital		81,338	80,842	81,115
Other paid-in equity		201,503	199,135	200,298
Retained Earnings		-3,070	-18,619	-14,172
Reserves		-7,724	-465	-2,817
Non-controlling interests		99,067	65,801	63,746
Total Equity		371,114	326,693	328,170
Non-current Liabilities
Interest bearing debt	8	641,095	368,161	567,829
Deferred tax liabilities		10,417	5,261	11,124
Lease liabilities	9	3,578	0	0
Other non-current liabilities		1,917	3,736	1,180
Total non-current liabilities		657,007	377,159	580,132
Current Liabilities
Accounts Payable		1,384	4,214	4,522
Current portion of interest bearing debt	8	232,915	109,244	169,296
Taxes Payable		8,658	1,694	1,610
Lease liabilities	9	2,436	0	0
Other current liabilities		17,626	23,313	24,172
Total current liabilities		263,019	138,465	199,600
Total Liabilities		920,026	515,624	779,732
TOTAL EQUITY AND LIABILITIES		1,291,140	842,317	1,107,903

Interim Consolidated Statement of Cash Flow

		For the quarter end		YTD
EUR thousand	Note	30 Sep 2019	30 Sep 2018	30 Sep 2019	30 Sep 2018	Full year 2018
Operating actitvities
Profit/(loss) before tax		6,336	801	24,123	720	6,160
Taxes paid		-1,333	-192	-4,441	-2,373	-2,543
Adjustments for:
- Finance income and expense		11,069	7,720	36,904	21,691	34,138
- Portfolio amortization and revaluation		23,086	7,818	58,942	25,342	31,900
- Cost of secured assets sold, incl. Impairment		16,374	14,598	56,093	38,074	56,432
- Depreciation and amortization		2,625	1,507	7,287	4,323	6,009
- Calculated cost of employee share options		362	231	880	1,180	1,374
Change in Working capital		-6,921	-3,743	-9,753	4,713	2,783
Net cash flows operating activities		51,597	28,739	170,035	93,670	136,253
Investing actitvities
Purchase of debt portfolios	6	-85,754	-110,013	-306,209	-222,146	-456,339
Sale of debt portfolio	6	519	0	519	0	0
Purchase of REO's	7	-7	0	-305	0	-99,310
Investment in subsidiaries		0	0	0	0	-1,086
Purchase of intangible and tangible assets		-2,036	-2,021	-6,479	-5,813	-6,995
Interest received		77	0	98	0	17
Net cash flows investing activities		-87,200	-112,034	-312,375	-227,959	-563,713
Financing actitvities
Proceeds from borrowings	8	84,065	120,973	235,941	336,058	600,651
Repayment of debt	8	-38,103	-49,387	-65,052	-154,309	-156,791
Interest paid	8	-11,737	-5,034	-32,133	-16,532	-24,405
Loan fees paid	8	-1,212	-2,499	-4,181	-5,058	-10,090
New Share issues		0	0	547	3,147	4,395
Proceeds from Non-controlling interests		-3,349	11,423	1,988	34,548	34,073
Costs related to share issues		0	0	0	-21	-31
Net cash flows financing activities		29,664	75,476	137,110	197,833	447,802
Net change in cash and cash equivalents		-5,939	-7,819	-5,230	63,544	20,341
Cash and cash equivalents at the beginning of period		69,335	121,037	70,776	50,482	50,482
Currency translation		-304	-1,146	-2,455	-1,954	-47
Cash and cash equivalents at end of period, incl. restricted funds		63,092	112,072	63,092	112,072	70,776

Interim Consolidated Statement of Changes in Equity

	Equity related to the shareholders of the Parent Company
	Restricted		Non-restricted
EUR thousand	Share capital	Other paid in capital	Exchange differences	Retained earnings and profit for the year	Total	Non controlling interest	Total Equity
Closing balance on 31 Dec 2017	79,377	196,298	13	-15,630	260,057	31,776	291,833
Adjustment on initial application of IFRS 15 (net of tax)				-3,087	-3,087		-3,087
Balance on 1 Jan 2018	79,377	196,298	13	-18,717	256,970	31,776	288,746
Result of the period				4,492	4,492	-2,103	2,390
Remeasurement of pension plans				50	50		50
Foreign currency translation differences - foreign operations			-2,830		-2,830		-2,830
Total comprehensive income for the period	0	0	-2,830	4,543	1,712	-2,103	-390
Proceeds from Non-controlling interests					0	34,073	34,073
New Share issues (exercise of share options)	1,465	1,682			3,147		3,147
New Share issues	273	975			1,248		1,248
Costs related to share issues		-31			-31		-31
Share based payment		1,374			1,374		1,374
Closing balance on 31 Dec 2018	81,115	200,298	-2,817	-14,172	264,423	63,746	328,170
Result of the period				11,102	11,102	3,333	14,435
Remeasurement of pension plans					0		0
Foreign currency translation differences - foreign operations			-4,906		-4,906		-4,906
Total comprehensive income for the period	0	0	-4,906	11,102	6,196	3,333	9,529
Proceeds from Non-controlling interests					0	31,988	31,988
New Share issues (exercise of share options)	222	325			547		547
Share based payment		880			880		880
Closing balance on 30 Sep 2019	81,337	201,503	-7,724	-3,070	272,046	99,067	371,114

Notes to the Financial Report

Note 1 Reporting entity and Accounting Principles

The Parent Company Axactor SE (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 primery involved in debt management, specialising on both purchasing and collection on own portfolios and providing collection services for 3rd party owned portfolio. The activities are further described in note 3.

The interim report has been prepared in accordance with IAS 34. The accounting principles applied correspond to those described in the Annual Report for the Financial Year 2018. 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 2018.

In preparing these interim financial statements, management has made judgements and estimates that effects the application and accounting policies and the reported amounts of assets and lliabilities, income and expenses. Actual result may differ from these estimates. Critical Accounting estimates and judgements in terms of accounting policies are more comprehensive discussed in the Company Annual report for the Financial Year 2018, which is available on Axactors website: www. axactor.com.

The significant judgements made by managements 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, except for the new leasing standard, IFRS 16, which is described below.

In January 2016 IASB introduced a new leasing standard that will replace IAS 17, leasing agreements and the associated interpretations IFRIC 4, SIC-15 and SIC-27. The standard demands that essentially all assets and liabilities related to a leasing agreement get recognized in the balance sheet with only a few exceptions. The new standard is based on the view that the lessee has a right to use an asset during a specified time period and at the same time an obligation to pay for it. The standard is applicable for annual reporting periods beginning on or after January 1, 2019.

The Group leases a limited number of assets such as buildings and vehicles. The Group's right-of-use assets are categorized and presented in the table below:

EUR thousand Total

7,442
6,445
436
58
-20
-109
-1,071
4
5,743

Note 2 Risks and uncertainties

Axactor's regular business activities entail exposure to various types of risk. The company 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, interst rate risk, regulatory risk, liquidity risks and financing risks. For a more elaborate discussion on the aforementioned risks one is referred to the Company's Annual Report for the Financial Year 2018, which is available on Axactor website: www.axactor.com (note 3 of the Group financial statement).

Note 3 Segment note

Axactor delivers credit management services and the company's revenue is derived from the following three operating segments: Non-Performing Loans (NPL), Real Estate Own (REO), and Third Party Collection (3PC). Axactor's operations are managed through these three 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 REO segment invests in real estate assets held for sale.

The 3PC segments main focus is to perform debt collection services on behalf of third-party clients. They apply both amicable and legal proceedings in order to collect the non-performing loans, and typically receive a commission for these services. They also help creditors to prepare documentation for future legal proceedings against debtors, and for this they typically receive a fixed fee. With effect from Q2 2019, Accounts Receivables Management (ARM) is subordinated under the 3PC segment. The ARM services include the handling of invoices between the invoice date and the default date, as well as sending out reminders.

Axactor reports its business through reporting segment which corresponds 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 Groups resources.

Segment revenue reported below 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.

For the quarter end 30 Sep 2019

EUR thousand	NPL	REO	3PC 1)	Eliminations/ Not allocated	Total
Collections on own portfolios	53,825	20,248	0	0	74,073
Other operating revenue	0	0	12,466	809	13,275
Portfolio amortization and revaluation	-23,086	0	0	0	-23,086
Net revenue	30,739	20,248	12,466	809	64,263
REO cost of sales	0	-16,374	0	0	-16,374
Impairment REOs	0	0	0	0	0
Direct operating expenses	-8,397	-2,408	-8,215	0	-19,020
Contribution margin	22,342	1,466	4,251	809	28,868
Local SG&A, IT and corporate cost				-8,839	-8,839
EBITDA					20,029
Total opex	-8,397	-18,782	-8,215	-8,839	-44,233
CM1 Margin	72.7 %	7.2 %	34.1 %	na	44.9 %
EBITDA Margin					31.2 %
Dopex / Gross revenue	15.6 %	92.8 %	65.9 %	na	40.5 %
SG&A, IT and corporate cost / Gross revenue					10.1 %

1) External revenue

For the quarter end 30 Sep 2018

EUR thousand	NPL	REO	3PC 1)	Eliminations/ Not allocated	Total
Collections on own portfolios	25,214	18,984	0	0	44,198
Other operating revenue	0	0	12,309	0	12,309
Portfolio amortization and revaluation	-7,818	0	0	0	-7,818
Net revenue	17,396	18,984	12,309	0	48,689
REO cost of sales	0	-14,598	0	0	-14,598
Impairment REOs	0	0	0	0	0
Direct operating expenses	-5,449	-2,250	-8,220	0	-15,919
Contribution margin	11,947	2,136	4,089	0	18,172
Local SG&A, IT and corporate cost				-8,144	-8,144
EBITDA					10,028
Total opex	-5,449	-16,848	-8,220	-8,144	-38,661
CM1 Margin	68.7 %	11.3 %	33.2 %	na	37.3 %
EBITDA Margin					20.6 %
Dopex / Gross revenue	21.6 %	88.7 %	66.8 %	na	54.0 %
SG&A, IT and corporate cost / Gross revenue					14.4 %

1) External revenue

YTD 30 Sep 2019

EUR thousand	NPL	REO	3PC 1)	Eliminations/ Not allocated	Total
Collections on own portfolios	156,327	69,963	0	0	226,290
Other operating revenue	0	0	42,098	884	42,981
Portfolio amortization and revaluation	-58,942	0	0	0	-58,942
Net revenue	97,385	69,963	42,098	884	210,329
REO cost of sales	0	-55,881	0	0	-55,881
Impairment REOs	0	-212	0	0	-212
Direct operating expenses	-23,047	-7,343	-25,964	0	-56,354
Contribution margin	74,338	6,526	16,134	884	97,882
Local SG&A, IT and corporate cost				-29,568	-29,568
EBITDA					68,314
Total opex	-23,047	-63,437	-25,964	-29,568	-142,015
CM1 Margin	76.3 %	9.3 %	38.3 %	na	46.5 %
EBITDA Margin					32.5 %
Dopex / Gross revenue	14.7 %	90.7 %	61.7 %	na	41.8 %
SG&A, IT and corporate cost / Gross revenue					11.0 %

1) External revenue

YTD 30 Sep 2018

EUR thousand	NPL	REO	3PC 1)	Eliminations/ Not allocated	Total
Collections on own portfolios	77,437	49,539	0	0	126,976
Other operating revenue	0	0	37,241	0	37,241
Portfolio amortization and revaluation	-25,342	0	0	0	-25,342
Net revenue	52,095	49,539	37,241	0	138,875
REO cost of sales	0	-38,074	0	0	-38,074
Impairment REOs	0	0	0	0	0
Direct operating expenses	-16,404	-5,901	-26,001	0	-48,307
Contribution margin	35,691	5,564	11,240	0	52,495
Local SG&A, IT and corporate cost				-25,760	-25,760
EBITDA					26,735
Total opex	-16,404	-43,975	-26,001	-25,760	-112,141
CM1 Margin	68.5 %	11.2 %	30.2 %	na	37.8 %
EBITDA Margin					19.3 %
Dopex / Gross revenue	21.2 %	88.8 %	69.8 %	na	52.6 %
SG&A, IT and corporate cost / Gross revenue					15.7 %

1) External revenue

Full year 2018

EUR thousand	NPL	REO	3PC 1)	Eliminations/ Not allocated	Total
Collections on own portfolios	117,034	69,810	0	0	186,844
Other operating revenue	0	0	51,964	0	51,964
Portfolio amortization and revaluation	-31,900	0	0	0	-31,900
Net revenue	85,135	69,810	51,964	0	206,909
REO cost of sales	0	-54,492	0	0	-54,492
Impairment REOs	0	-1,946	0	0	-1,946
Direct operating expenses	-23,100	-8,603	-35,352	0	-67,055
Contribution margin	62,035	4,769	16,612	0	83,416
Local SG&A, IT and corporate cost				-37,110	-37,110
EBITDA					46,306
Total opex	-23,100	-65,041	-35,352	-37,110	-160,603
CM1 Margin	72.9 %	6.8 %	32.0 %	na	40.3 %
EBITDA Margin					22.4 %
Dopex / Gross revenue	19.7 %	93.2 %	68.0 %	na	51.7 %
SG&A, IT and corporate cost / Gross revenue					15.5 %

1) External revenue

Note 4 Revenue

Portfolio Revenue

	For the quarter end		YTD
EUR thousand	30 Sep 2019	30 Sep 2018	30 Sep 2019	30 Sep 2018	Full year 2018
Yield 1)	35,828	17,781	97,292	52,247	74,536
CU1 2)	-9,369	-1,712	-4,711	942	8,454
CU2 3)	3,093	893	1,779	-2,235	447
CU2 tail 4)	1,187	434	3,025	1,140	1,697
Net revenue	30,739	17,396	97,385	52,095	85,135

1) The effective interest rate on portfolios

2) Catch up 1. Over- or underperformance compared to collection forecast

3) Catch up 2. Revaluations and net present value of changes in forecast

4) Catch up 2 tail. The net present value effect of rolling 180 months forecast

Note 5 Financial items

	For the quarter end		YTD
EUR thousand	30 Sep 2019	30 Sep 2018	30 Sep 2019	30 Sep 2018	Full year 2018
Financial revenue
Interest on bank deposits	68	5	98	7	17
Exchange gains	0	0	0	0	0
Exchange gains realized	8	76	7	364	381
Net unrealized exchange gain	2,794	0	2,121	0	0
Other financial income	21	-59	36	24	54
Total financial revenue	2,892	21	2,262	395	453
Financial expense
Interest expense on borrowings	-13,411	-7,013	-37,314	-20,195	-29,713
Distribution of interest on Notes to NCI 1)	0	0	0	0	-2,080
Exchange losses realized	-39	-61	-123	-279	-294
Net unrealized exchange loss	0	-315	0	-125	-456
Other financial expense 2)	-510	-353	-1,729	-1,487	-2,047
Total financial expense	-13,961	-7,741	-39,166	-22,086	-34,591
Net financial items	-11,069	-7,720	-36,904	-21,691	-34,138

1) Notes are classified as Debt instruments in 2018, hence distribution over P&L

2) Includes amortization of warrants of 0.4m in each Q 2019, 0.4 each Q 2018 and 1.5m full year 2018

3) Main part of the unrealized exchange gain relates to a short term exposure on a NOK loan

Note 6 Non-performing loans

	YTD
EUR thousand	30 Sep 2019	30 Sep 2018	Full year 2018
Opening balance	728,819	317,150	317,150
Acquisitions during the year	302,849	133,042	461,910
Collection	-156,327	-77,437	-117,034
Yield - Interest income from purchased loan portfolios	97,292	52,247	74,536
Net gain/loss purchased loan portfolios 1)	93	-152	10,599
Repossession of secured NPL to REO	-3,881	-2,813	-2,953
Disposals 1)2)	-167	-628	-9,416
Translation difference	-4,725	-2,302	-5,972
Closing balance	963,952	419,107	728,819
Payments during the year for investments in purchased debt amounted to EUR	306,209	222,146	456,339
Deferred payment	1,278	0	5,572

1) Gain on disposals is netted in P&L as 'Net gain/loss purchased loan portfolios'

2) Disposals relates to portfolio purchase agreements entered with Unicaja to purchase REOs. The agreement was entered with a first and second closing. The condition for the second closing was that Axactor was committed to purchase the defined assets in the contract. Assets that was in a sales process on the date of signing were held back pending on a sale. A sale of committed, not transferred assets are treated as a cash flow from NPL portfolio revenue. Assets still unsold within a defined period from signing of the contract was treated as a disposal and transferred to REOs.

Note 7 Stock of secured assets - REO

	YTD
EUR thousand	30 Sep 2019	30 Sep 2018	Full year 2018
Acquisition cost, opening balance	200,009	154,101	154,101
Acquisitions during the year	305	93,715	99,310
Repossession of secured NPL	3,881	2,813	2,953
Cost of sold secured assets	-55,881	-38,074	-54,491
Other	0	0	82
Total acquisition cost	148,314	212,555	201,955
Impairment	-212	0	-1,946
Closing balance	148,101	212,555	200,009
Number of assets	4,612	7,388	6,323

Note 8 Loans and borrowings

EUR thousand				Currency	Interest rate	Carrying amount	Year of maturity
Balance at 1 Jan 2019				EUR / NOK / SEK	Variable	737,124	2019-2024
New issues
Italian Banks 2)				EUR		24,001	2019-2024
DnB/Nordea 1)				Various		158,947	2020-2021
Listed Bond Loan 4)				EUR		50,000	2021
Nomura 5)				EUR		2,993	2022
Finnish Banks				EUR		0	2020-2021
Repayments
Italian Banks				EUR		-29,501
Coversion to Equity Notes, NCI				EUR		-30,000
Nomura 5)				EUR		-35,483
Other 3)				EUR		-68
Other movements
Capitalized loan fees						-3,908
Amortized loan fees on loans						5,096
Accrued interest						-72
Currency translations						-5,119
Balance at 30 Sep 2019						874,010
Non-current portion of interest bearing debt						641,095
Current portion of interest bearing debt						232,915
Of which in currency
NOK						110,997
SEK						78,101
EUR						684,912
EUR thousand	DNB/Nordea	Bond	Sterna	DNB	Nomura	Local banks	Total
Borrowings per facility
Gross interest bearing debt	334,207	200,000	120,000	117,446	65,218	47,684	884,555
Capitalized loan fee	-6,090	-1,437	-1,734	-1,420	-2,501	0	-13,181
Accrued interest Interest bearing debt, end of period	0 328,117	272 198,835	2,080 120,346	0 116,026	283 63,000	0 47,684	2,636 874,010

1) The debt facility agreement with DNB Bank ASA and Nordea Bank AB is EUR 350 million, whereof 50 million in the form of accordion options. The last 50 million was utilized July 5th. The loan carries a variable interest rate based on the interbank rate in each currency with a margin.

Under the terms of this debt facility the group is required to comply with the following financial covenants: the Group NIBD Ratio < 3; the Portfolio Leverage Ratio < 60 % and Collection performance > 90 %

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. Italian subsidiaries together with the co-Invest Vehicle in Luxembourg as well as the REO Holding company in Luxembourg are not a part of the agreement nor the security arrangement.

2) The facilities of the Italian banks relate to eleven different facilities and agreements with several Italian banks. The loans carries variable interest rates based on the interbank rate with a margin. Some of the loans are secured with collaterals worth EUR 24 million.

• 3) Following the co-investment partnership with Geveran, Notes in the amount of EUR 230 million has been issued, of which for EUR 185 million has been subscribed to by Sterna Finance, a company in the Geveran Group. The remainder has been subscribed to by Axactor SE. This consists of EUR 120 million class B Notes, subordinated secured Note, fully subscribed by Geveran. The maturity is in 2022.
• 4) In March 2019, Axactor SE completed a tap issue of EUR 50 million in its outstanding senior unsecured bonds due 23 June 2021 (ISIN NO0010840515). Following the tap issue the total nominal amount outstanding under the bonds will be EUR 200 million.

The bonds are listed on Oslo Exchange. The coupon rate is 3m EURIBOR + 700 bps pa. The following financial covenants: Interest coverage ratio: >4.0x (Pro-Forma Adjusted Cash EBITDA to net interest expenses); Leverage ratio: <4.0x (NIBD to Pro-Forma Adjusted Cash EBITDA); Net loan to value: <75% (NIBD to total book value all debt portfolios and REOs); Net secured loan to value: <65% (secured loans less cash to total book value all debt portfolios and REOs). Trustee: Nordic Trustee

5) In August 2018 Reolux Holding S.à.r.l signed a 96 mill EUR senior secured term loan facility with Nomura International plc ("Nomura") to refinance Reolux's existing Spanish Real Estate Owned (REO) investments. The facility was amended in September to facilitate new Spanish Real Estate Owned (REO) investments.

Note 9 Leasing

Right-of-use assets

EUR thousand	Buildings	Vehicles	Other	Total
Right-of-use assets per 1 Jan	5,043	611	89	5,743
New leases	2,000	130	0	2,129
Depreciation of the year	-1,616	-217	-37	-1,870
Disposals	0	-6	0	-6
Currency exchange effects	-54	-4	-1	-58
Carrying amount of right-of-use assets 30 Sep 2019	5,427	523	52	5,938
Remaining lease term	1-6 years	1-4 years	1-3 years
Depreciation method	Linear	Linear	Linear

Lease liabilities

EUR thousand	Total
Discounted lease liabilities and maturity of cash outflow
< 1 year	2,436
1-2 years	1,955
2-3 years	824
3-4 years	586
4-5 years	206
> 5 years	8
Total discounted lease liabilities at 30 Sep 2019	6,014

Note 10 Shares

Issued shares and share capital

	Number of shares	Share capital (EUR thousand)
At 1 Jan 2017	1,226,488,769	64,197,268
New share issues, May	50,000,000	2,617,116
New share issues, Aug	75,600,000	3,957,079
New share issues, Sep	164,400,000	8,605,077
At 31 Dec 2017	1,516,488,769	79,376,540
Exercise of share options, Apr	27,992,250	1,465,179
New share issues, May	1	0
Reverse split 1:10, May
at 30 Jun after Reverse split 1:10	154,448,102	80,841,720
New share issues, Nov 2018	523,012	273,756
At 31 Dec 2018	154,971,114	81,115,475
New share issues, May	424,350	222,115
At 30 Sep 2019	155,395,464	81,337,590

30 largest shareholders as at 30 Sep 2019

Name	Shareholding	% Share
Geveran Trading Co Ltd	36,450,533	23.5 %
Verdipapirfondet Dnb Norge (IV)	9,105,292	5.9 %
Torstein Ingvald Tvenge	7,150,000	4.6 %
Ferd AS	5,335,139	3.4 %
Verdipapirfondet Alfred Berg Gamba	3,805,376	2.4 %
Verdipapirfondet Alfred Berg Norge	2,890,144	1.9 %
Verdipapirfondet Alfred Berg Aktiv	2,255,706	1.5 %
Gvepseborg AS	2,154,655	1.4 %
Verdipapirfondet Nordea Norge Verd	2,036,494	1.3 %
Alpette AS	2,013,102	1.3 %
UBS Switzerland AG	1,707,084	1.1 %
Nordnet Livsforsikring AS	1,675,970	1.1 %
Vatne Equity AS	1,661,643	1.1 %
Citibank	1,502,706	1.0 %
Andres Lopez Sanchez	1,341,599	0.9 %
David Martin Ibeas	1,177,525	0.8 %
Klotind AS	1,177,525	0.8 %
Latino Invest AS	1,098,523	0.7 %
Hunderi Holding AS	1,068,351	0.7 %
Verdipapirfondet Nordea Avkastning	1,030,000	0.7 %
Verdipapirfondet Nordea Kapital	1,024,709	0.7 %
BNP Paribas Securities Services	990,330	0.6 %
Vardfjell AS	915,672	0.6 %
Elena AS	891,401	0.6 %
Endre Rangnes	879,000	0.6 %
Citibank	864,000	0.6 %
Svein Dugstad	808,287	0.5 %
Norus AS	719,000	0.5 %
Banca Sistema S.P.A	688,271	0.4 %
Bente Mowinckel Tvenge	610,000	0.4 %
Total 30 largest shareholders	95,028,037	61.2 %
Other shareholders	60,367,427	38.8 %
Total number of shares	155,395,464	100%

Total number of shareholders 8,797

Shares owned by related parties

Name	Shareholding	% Share
Geveran Trading Co Ltd 1)	42,985,233	27.7 %
Alpette AS 2)	1,661,643	1.1 %
Andres Lopez Sanchez 3)	1,177,525	0.8 %
David Martin Ibeas 3)	1,177,525	0.8 %
Latino Invest AS 4)	1,030,000	0.7 %
Endre Rangnes 2)	864,000	0.6 %
Banca Sistema S.P.A 5)	604,504	0.4 %
Fryden AS / Oddgeir Hansen 6)	576,000	0.4 %
Johnny Tsolis Vasili 4)	540,000	0.3 %
Siv Farstad 6)	294,810	0.2 %
Robin Knowles 6)	278,180	0.2 %
Bjørn Erik Næss 7)	100,000	0.1 %
Susanne Lene Rangnes Schneider 2)	39,832	0.0 %
Anders Gulbrandsen 8)	22,375	0.0 %
Sicubi AS / Bente Brocks 8) 9)	16,200	0.0 %
Bergsjo AS / Beate Skjerven Nygårdshaug 7)	12,300	0.0 %
Lars Valseth 8)	12,188	0.0 %
Brita Eilertsen 7)	10,000	0.0 %
Terje Mjøs 7)	10,000	0.0 %

1) Geveran Trading Co Ltd owns 50% of Luxco Invest1 S.A and Reolux Holding S.à.r.l., companies controlled by Axactor Group

2) CEO/Related to the CEO of Axactor SE

3) Member of the executive management team of Axactor SE and former owner of ALD, Spain

4) Related to the CFO of Axactor SE

5) Banca Sistema S.P.A. owns 10% of the shares in Axactor Italy Srl, a company controlled by Axactor Group

6) Member of the executive management team of Axactor SE

7) Member of the Board of Directors of Axactor SE/controlled by member of the Board of Directors of Axactor SE

8) Primary insider of Axactor SE

9) Company controlled by primary insider of Axactor SE

As from 31 May 2018 the shares in Axactor SE are traded ex reverse split, with new ISIN and new face value. Ratio: 10 old shares give 1 new share. New ISIN: NO0010840515. New Face value: EUR 0.5234232

Terms and abbreviations

3PC	Third-Party Collection
ARM	Accounts Receivable Management
B2B	Business to Business
B2C	Business to Consumer
BoD	Board of Directors
Cash EBITDA	EBITDA adjusted for calculated cost of share option program, portfolio amortizations, revaluations, REO cost of sales and REO impairments
CGU	Cash Generating Unit
CM1	Contribution Margin
Dopex	Direct Operating expenses
EBITDA	Earnings Before Interest, Tax, Depreciation and amortization
ECL	Expected credit loss
ERC	Estimated Remaining Collection, the total of expected collection on portfolios over the next 180 months. The discounted value of the ERC for NPLs is booked as Closing balance in the Financial Position
EPS	Earnings Per Share
EUR	Euro
FTE	Full Time Equivalent
IFRS	International Financial Reporting Standards
NIBD	Net Interest Bearing Debt - Interest bearing debt less cash
NCI	Non-controlling interests
NOK	Norwegian Krone
NPL	Non- Performing Loan
OB	Outstanding Balance, the total amount Axactor can collect on claims under management, including outstanding principal, interest and fees
PCI	Purchased Credit Impaired
PPA	Purchase Price Allocations
Pro-forma Cash EBITDA	Cash EBITDA adjusted for acquired/sold business (and portfolios in regards of covenants)
REO	Real Estate Owned
SEK	Swedish Krone
SG&A	Selling, General & Administrative Expenses
SPV	Special Purpose Vehicle
VIU	Value in Use
WAEP	Weighted average exercise price

Financial calendar 2019

Quarterly Report - Q1	26.04.2019
Quarterly Report - Q2	24.07.2019
Quarterly Report - Q3	25.10.2019
Quarterly Report - Q4	12.02.2020

Contact details

Axactor SE (publ) Drammensveien 167 0277 Oslo Norway

www.axactor.com

The shares of Axactor SE (publ.) are listed on the Oslo Stock Exchange, ticker AXA.

Cautionary Statement: Statements and assumptions made in this document with respect to Axactor SE'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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