Axactor SE

Earnings Release • Aug 14, 2017

AXACTOR Q2-2017 REPORT - RECORD STRONG OPERATIONAL PERFORMANCE

AXACTOR Q2-2017 REPORT - RECORD STRONG OPERATIONAL PERFORMANCE

Oslo, 14 August 2017,

Highlites

* Strong operational performance and significant margin expansion for

the quarter.

* Continued to grow the business through new NPL acquisitions and

contracts

* Growth also fueled by additional funding facilities from the banks

in addition to private placement

* Gross Revenue of EUR 26.9 million (7.8) - up 341% vs Q2 2016

* EBITDA of EUR 6.1 million (-3.4) - up 179% vs Q2 2016

* Cash EBITDA of EUR 9.4 million (-2.1) - up 447% vs Q2 2016

* Net result positive with 4.6 million (-2.8) - up 164% vs Q2 2016

* ERC at end of Q2 EUR 511 million (126) - up 305% vs Q2 2016

* Settlement with former IGE Board members increased Q2 revenue and

EBITDA by EUR 2 million.

Axactor shows strong operating performance during the second quarter

of 2017 and continues to grow the business through acquisitions of

NPL (none performing loan) portfolios and signing of new 3PC (third

party collection) contracts. To fuel the growth the company has

secured additional funding facilities from the banks in addition to

the private placement which was successfully completed during the

quarter.

The strong performance resulted in an EBITDA of EUR 6.1 million and

an operating margin of 26.3%. The gross collection of EUR 26.9

million was in line with company expectations.

The Group posted a record-high quarterly cash EBITDA of EUR 9.4

million, an increase of EUR 11.5 million compared to Q1 2016 and an

increase of EUR 5.8 million compared to the previous quarter.

A settlement with the former IGE Board members contributed with a

positive one-time effect of approx.

EUR 2 million to revenue and EBITDA as Axactor in June received EUR

1.6 million cash and 0.4 million in none cash compensation.

The major contributor to the enhanced operational result is the Bank

Norwegian portfolio where the portfolio shows performance well ahead

of the initial investment case. Additionally, 3PC revenue was up by

17 % compared to previous quarter. These two elements, combined with

the mentioned settlement, resulted in a significant margin expansion

for the quarter.

"Second quarter was a good quarter for Axactor, where we achieved a

good performance in our operations and continued the growth of the

company as planned. The Bank Norwegian portfolio we acquired at the

very end of Q1 has performed well in Q2, and significantly

contributed to the EBITDA uplift we now are seeing", says Endre

Rangnes, CEO in Axactor.

During the quarter Axactor acquired its first portfolio in Germany

and the first secured portfolio in Spain. In total Axactor invested

EUR 54 million across 6 portfolios which increased ERC at the end of

the quarter to EUR 515 million.

Axactor increased the borrowing facilities in Norway and Italy by a

total of EUR 72 million during the quarter, bringing the total

borrowing facilities earmarked for investments up to EUR 175 million.

In July, DNB and Nordea further made a 5th tranche of EUR 40 million

available, bringing total borrowing facilities for investments to EUR

215 million.

The market for purchases of NPL portfolios remains buoyant, with

Spain and the Nordics being the most active markets. New contracts

within the 3PC segment are showing positive developments,

particularly in Spain, where a total of 7 new contracts with a

combined annual value of EUR 8 million have been announced during the

quarter. "We continue to focus on profitable growth within Axactor's

current markets. We are staying true to our strategy and have reached

several important milestones ahead of time. It is inspiring for the

whole Axactor team to see that our strategy is bearing fruits", says

Endre Rangnes.

For further information, please see the presentation and the Q2 2017

report attached.

The documents are also available on the Company's website:

www.axactor.com

For additional information, please contact:

Endre Rangnes, CEO Axactor

Mobile phone: +47 4822 1111

Email: endre.rangnes@axactor.com

or

Geir Johansen, CFO & Investor Relations, Axactor

Mobile phone: +47 4771 0451

Email: geir.johansen@axactor.com

www.axactor.com

About Axactor

Axactor Group specializes in both Debt Collection and Debt Purchasing

across several countries, with operations in Italy, Germany, Norway,

Sweden and Spain. The company has a Nordic base and an ambitious Pan-

European growth strategy, which targets the market for non-performing

loans (NPL) in Europe. This market is estimated to be about 1,500

billion euros across Europe providing significant opportunities for

Axactor's future expansion. Axactor has approximately 888 employees.