Axactor SE

Quarterly Report • May 7, 2025

Axactor helps people and society to a better future

We are passionate, proactive and act with integrity

/ Highlights

First quarter 2025

• Annualized return on equity of 12%, driven by strong revenue growth and reduced financial expenses (1%)
• Total revenue growth of 15%, ending at EUR 65.0 million (56.6), with NPL collection performance of 101% (92%)
• 3PC revenue growth of 28% and margin expansion, with double digit growth in all four countries with 3PC product offering
• EBITDA margin expansion to 50%, up from 46% in the first quarter last year
• Re-purchased bond loans with a nominal value of EUR 48.8 million at sub-par values, resulting in a net gain of EUR 1.2 million
• Gross revenue of EUR 77.4 million (79.1) and Cash EBITDA of EUR 46.7 million (49.0). The decline compared to the first quarter 2024 was mainly due to the large NPL portfolio divestment in the fourth quarter 2024.
• NPL investments of EUR 5.2 million (10.8), with an average gross IRR for the total NPL stock of 19% (18%)
• Increased payer activation on the NPL portfolio, with 6.7% of all cases in stock registering at least one payment during the quarter
• Migration to new IT infrastructure vendor on track with first three countries successfully transferred to the new platform during the quarter. Finalization of migration process planned during second quarter 2025

Events after the period

• An agreement to exercise both extension options for the revolving credit facility (RCF) was made in April, and the new maturity date for the RCF will be 30 June 2028. With the extension, the Group has no debt maturities before September 2026
• Further bond re-purchases of EUR 2.9 million conducted in April, preparing for the re-financing of the ACR03 bond

Key figures that cannot be directly found in the Group's consolidated statements are reconciled in the APM tables.

		For the quarter end/YTD
EUR million	31 Mar 2025	31 Mar 2024	Full year 2024
Gross revenue	77	79	415
Total revenue	65	57	128
EBITDA	32	26	9
Cash EBITDA	47	49	298
Net profit/(loss) after tax	10	1	-79
EBITDA margin	50%	46%	7%
Return on equity to shareholders, annualized	12%	1%	-19%
Equity ratio	27%	30%	26%
Acquired NPL portfolios	5	11	128
Book value of NPL portfolios	1,095	1,235	1,087
Estimated remaining collections (ERC)	2,346	2,555	2,340
Number of employees (FTEs)	1,198	1,261	1,174
Price per share, last day of period (NOK)	4.45	4.67	3.69
Market capitalization (NOK million)	1,345	1,411	1,115

Gross revenue EUR million 77

-2% y/y

Return on equity

EBITDA EUR million 32

50% margin

Cash EBITDA EUR million 47 -5% y/y

Equity ratio

27%

/ Operations

The collection environment in Axactor's markets showed stability during the first quarter of 2025, with slightly positive signals from improved amicable collection. Larger settlements seem to be returning, driven by increased re-financing options for debtors. The NPL segment achieved a gross revenue of EUR 62.2 million, with an NPL collection performance of 101%. The 3PC segment delivered a total revenue of EUR 15.2 million, a 28% growth compared to the first quarter of 2024 and a testament to the tailwind experienced in the customer dialogue and customer satisfaction.

With the strong increase in 3PC revenue and the large NPL portfolio divestment in the fourth quarter of 2024, Axactor saw a shift in business mix during the first quarter of 2025. The NPL segment still make up the majority of gross revenue, but the 3PC segment increased its relative share from 15% in the first quarter 2024 to 20%. As the 3PC segment by nature has a lower margin compared to the NPL segment, the cost relative to gross revenue increased to 42% during the first quarter 2025. Additionally, IT cost increased due to the migration to a new infrastructure provider, a project aimed at significantly reducing the future cost level.

Activating more payers

The portfolio divested in the fourth quarter 2024 contained a large number of cases without any active payment agreement. With the freed-up capacity post sale focus was diverted towards the remaining portfolios, aiming for amicable solutions. The average

percentage of cases with at least one payment in the first quarter of 2025 increased to 6.7% of all cases. This 1 percentage point increase compared to the first quarter of 2024 marks a significant improvement. Axactor will continue its work to activate further payers over the coming months.

Building a successful secured collection unit by following a niche strategy

During the last three and a half years the secured NPL sub-segment in Spain has been re-built and transformed through a niche strategy of acquiring smaller NPL portfolios with secured claims with real estate as collateral. The same team offers 3PC services as well, focusing on institutional investors of secured NPL portfolios. The secured NPL segment currently represents 9% of the NPL book value, and Axactor intends to gradually grow its secured exposure following the same niche strategy.

Substantial growth within the 3PC segment

Axactor is experiencing an increasing demand for tailormade 3PC services within the bank and finance segment, as well as an increased willingness to pay for high quality and performance. All four markets where Axactor offer 3PC services are experiencing both increased revenue and improved profitability. Going forward, more resources will be deployed towards strategic customers, while the work to discontinue unprofitable customers is set to continue. Several new contracts have recently been closed, and new interesting opportunities are pending negotiations.

New projects utilizing artificial intelligence under implementation

Even though Axactor was an early adaptor of machine learning, robotics and systems that are using artificial intelligence, new projects were launched in March 2025 to utilize large language models directly into the collection processes and for quality related tasks. While there are strict regulations to consider and Axactor has a low risk tolerance, there are many possibilities to improve the collection processes within current regulations.

Migration to new IT infrastructure partner

The IT infrastructure migration project is well underway, and during the first quarter of 2025 Norway, Sweden and Finland were successfully migrated to the new platform. The project is progressing according to schedule. All major risks have been handled in an effective manner with minimal incidents and business impacts.

Progress for the remaining countries to be migrated is on track, and the aim is to conclude the project in June 2025.

Regulatory developments

The NPL directive continues to be of high importance to the Group, and Axactor closely monitors the development in its countries of operation. During the quarter, the legislators in both Finland and Spain have announced implementation delays. Finland expects to implement the directive during the second quarter of 2025, whilst Spain is expected to follow in the third quarter of 2025. Italy has implemented the directive, but the directive has no effect until secondary legislation has been implemented by Bank of Italy. Lastly, Norway is expected to complete their implementation by the first quarter of 2026.

The EU's AI Act entered into force across the Member States during the first quarter, with the premature implementation of Chapter 1 and 2 of the Act. The main parts of the Act enter into force in August 2026, with subsequent delayed implementation (e.g. for high-risk systems) entering into force August 2027. Axactor is closely following the regulatory implementation schedule to ensure that its systems and processes remain compliant and innovative.

Risk and compliance

As part of its risk management process, Axactor has updated its quarterly risk assessments and conducted operational internal controls. An annual plan for the internal audit function for 2025 has been set and the results of audits conducted have been analyzed and are being followed-up. Compliance awareness e-learning trainings within data privacy, ethics, anti-money laundering, and information security have been reviewed and prepared for distribution throughout 2025. During the quarter, Axactor has also renewed all its group wide insurance policies.

People

Axactor focuses on building a strong corporate culture. Key areas of attention during the first quarter have been performance management, career planning, leadership development, and fostering a positive and social work environment. Appraisal talks focusing on employee satisfaction and development have been conducted, and short-term incentive targets for 2025 have been set for all managers. The targets support Axactor's strategy and sustainability related topics. To improve performance and to motivate and retain high performers, salaries and operational bonus models have been reviewed. The review also focused on equal pay for equally valuable work, to reduce potential unexplainable pay gaps.

/Financials

Revenue

Total revenue for the first quarter ended at EUR 65.0 million (56.6), with double digit growth in both business segments. The NPL amortization and revaluation ended at EUR 12.4 million, an improvement from EUR 22.4 million in the first quarter 2024. The gross revenue fell from EUR 79.1 million in the first quarter 2024 to EUR 77.4 million. The main reason for the decline in gross revenue is the large portfolio divestment in the fourth quarter last year. Excluding the divested portfolios, gross revenue increased by 7% compared to the first quarter last year. The NPL collection

performance was 101% for the quarter, up from 92% in the first quarter last year, and up from 94% in the fourth quarter last year.

The NPL segment delivered a total revenue of EUR 49.8 million in the first quarter, up from EUR 44.7 million in the first quarter 2024. The improvement is mainly caused by a lower effective NPL amortization rate of 17% (26%), and net NPL revaluations of EUR -2.0 million compared to -4.7 million in the first quarter 2024. Gross revenue for the NPL segment ended at EUR 62.2 million, down 7% compared to the first quarter last year (67.2). The decline comes

The 3PC segment total revenue ended at EUR 15.2 million, up 28% from the corresponding quarter last year (11.9). All the four countries with an active 3PC business delivered double digit growth, with particularly good results in Spain and Norway. Further expansion in the 3PC segment is expected throughout the year, with strong pipelines for new business.

NPL 80%

3PC 20%

%

Operating expenses

NPL 77% Total operating expenses before depreciation and amortization for the quarter was EUR 32.6 million. This compares to EUR 30.3 million in the first quarter 2024, which also included EUR 1.0 million in restructuring costs. The main increase comes from cost of repossessed assets sold, which ended at EUR 1.9 million, up from EUR 0.2 million in the corresponding quarter last year. The first quarter also saw increased expenses related to the migration to a new IT infrastructure provider, a move that is expected to significantly reduce the future cost level. Another factor explaining the increased cost level is the high growth in the 3PC segment, as

the segment typically has a higher relative cost level compared to the NPL segment. Overall, total operating expenses grew by 8%, compared to a 15% growth in total revenue. Nonetheless, the total operating expenses as percent of gross revenue increased to 42% for the first quarter (38%).

Depreciation and amortization – excluding amortization of NPL portfolios – was EUR 2.1 million for the quarter, down from EUR 2.2 million in the corresponding quarter last year.

Operating results

EBITDA and EBITDA margin

EUR million and %

Total contribution margin from the business segments in the quarter was EUR 43.2 million, up from EUR 37.5 million in the first quarter last year. The main driver for the improvement was the 15% increase in total revenue, combined with continued cost focus.

The NPL segment delivered a contribution margin of EUR 38.2 million in the quarter, up from EUR 33.7 million in the corresponding quarter last year. The total operating expenses for the NPL segment increased 6% to EUR 11.7 million (11.0), primarily due to a significant non-cash impact from cost of repossessed assets sold of EUR 1.9 million (0.2). The contribution margin over total revenue improved to 77% (75%).

The contribution margin for the 3PC segment was EUR 5.0 million, driven by the strong improvement in segment revenue (3.8). The revenue improvement contributed to an improvement in contribution margin over segment revenue as well, from 32% in the first quarter 2024 to 33% in the first quarter 2025.

EBITDA for the quarter ended at EUR 32.4 million, up 23% from the first quarter 2024 (26.2). The margin over total revenue improved from 46% in the first quarter last year, to 50%.

The difference between contribution margin and EBITDA is comprised of unallocated SG&A and IT costs, which amounted to EUR 10.8 million for the quarter. This represents a decrease from EUR 11.3 million in the corresponding quarter 2024, although the 2024 figure included EUR 1.0 million of restructuring costs.

Cash EBITDA ended at EUR 46.7 million for the quarter, down from EUR 49.0 million in the first quarter last year. The reduction was primarily driven by the large portfolio divestment in the fourth quarter 2024.

Operating profit (EBIT) was EUR 30.3 million for the first quarter, compared to EUR 24.1 million in the first quarter last year.

Net financial items

Total net financial items for the quarter were negative EUR 16.8 million (negative 23.1). The main part of the financial items was made up of interest expense on borrowings of EUR 19.3 million, compared to EUR 22.4 million in the first quarter last year. Axactor continued to re-purchase bond loans at sub-par values in the first quarter, acquiring a total face value of EUR 48.8 million. The acquisitions resulted in a net gain of EUR 1.2 million. The net foreign exchange impact for the quarter was positive EUR 1.1 million, compared to negative EUR 0.4 million in the first quarter last year.

Earnings and taxes

Earnings before tax ended at EUR 13.5 million for the first quarter (1.0), while net profit ended at EUR 10.1 million (0.7). The effective tax rate was thus 25% for the quarter, slightly lower than in the first quarter 2024 (27%).

During the first quarter 2025, Axactor acquired full ownership in Reolux Holding S.a.r.l., and consequently there are no non-controlling interests from this date. The profit to the shareholders of the parent company for the first quarter 2025 was EUR 10.1 million (0.7), while the non-controlling interest's share was less than EUR 0.1 million (0.0). The resulting earnings per share was thus EUR 0.033 for the first quarter 2025 both on a reported basis and fully diluted (0.002).

Cash flow

Net cash flow from operating activities, including NPL investments, amounted to EUR 75.7 million (29.1) for the quarter, of which the amount paid for NPL portfolios was EUR 4.9 million (13.2). 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. The total cash flow from operations excluding investments in NPL portfolios ended at EUR 80.6 million (42.4). The increase was mainly driven by a reduction in net working capital of EUR 36.5 million (2.1), which is mostly related to bond-repurchases that were closed in March but paid for in April. Taxes paid declined to EUR 2.6 million compared to EUR 8.8 million in the first quarter last year. These improvements were partly offset by the EUR 2.3 million reduction in cash EBITDA.

Total net cash flow from investing activities, not including investments in NPL portfolios, was EUR -0.8 million for the first quarter, compared to EUR -0.7 million for the first quarter 2024.

Total net cash flow from financing activities was EUR -72.6 million for the quarter (-24.1), with a net repayment on credit facilities of EUR 53.8 million (repayment of 1.4). Interests paid decreased from EUR 21.7 million in the first quarter last year, to EUR 18.3 million in the first quarter 2025. The decrease is partly related to reduced reference rates (EURIBOR, NIBOR and STIBOR) during the period, as well as reduced outstanding debt.

Total net cash flow was thus EUR 2.3 million for the quarter (4.3), leaving total cash and cash equivalents at EUR 36.1 million at the end of the period (35.3), not including restricted cash.

Equity position and balance sheet considerations

Total equity for the Group was EUR 347.3 million at the end of the first quarter (415.2), up from EUR 331.7 million at the end of last year. The increase is due to the results recognized during the period. The resulting equity ratio at the end of the quarter was 27% (30%).

Return on equity

Driven by the improvements in total revenue and lower financial expenses, the annualized return on equity for the first quarter improved to 12% (1%). With lower interest rates, improved NPL collection performance, strong 3PC growth and a continued focus on cost, Axactor expects to continue to deliver a return on equity at a healthy level throughout 2025. The improved return on equity also shows Axactor is on track to deliver on the communicated profitability targets for 2026.

Capital expenditure and funding

Axactor invested EUR 5.2 million in NPL portfolios during the first quarter (10.8). The moderate investment level is expected to pick up later in 2025. The book value of NPL portfolios increased by 1% from year-end 2024 to EUR 1,095.3 million (1,235.3), while the estimated remaining collections ended at EUR 2,345.7 million (2,555.1). Estimated future NPL investment commitments stand at EUR 7.3 million per the end of the first quarter, of which EUR 5.7 million is related to the remainder of 2025.

Axactor has two outstanding bond loans per the end of the first quarter 2025. The EUR 300 million bond with ticker ACR03 matures in September 2026. A total face value of EUR 47.1 million was re-purchased during the first quarter, and adjusting for treasury bonds the outstanding face value of the bond was EUR 183.1 million per quarter-end. Further re-purchases were made in April as well, acquiring an outstanding face value of EUR 2.9 million. The NOK 2,300 million bond with ticker ACR04 was placed during the third quarter 2023, with a maturity in September 2027. A total face value of EUR 1.7 million was re-purchased during the quarter, and consequently the outstanding face value of the bond at the end of the first quarter was EUR 199.8 million.

Axactor's multi-currency revolving credit facility (RCF) has a total size of EUR 545 million, of which EUR 474.7 million were drawn per the end of the year (465.8). Additionally, the agreement has a EUR 275 million accordion option, contingent on separate credit approval. An extension of the maturity for the RCF was agreed in April, and the new maturity will be 30 June 2028.

Total interest-bearing debt including capitalized loan fees amounted to EUR 847.6 million at the end of the first quarter 2025 (925.9).

Axactor is in compliance with all loan covenants as per the end of the first quarter 2025.

Outlook

Axactor continued to re-purchase bond loans during the first quarter 2025, in line with the communicated deleveraging strategy. An agreement to extend the RCF maturity was made in April, and the Group expects to refinance or re-pay its 2026 bond maturity during 2025. Investments in attractive NPL portfolios is expected to pick up during the coming quarters, and the current investment guiding of EUR 100 – 200 million per year for the period 2024- 2026 is reiterated. The estimated replacement capex for 2025 is EUR 66.0 million.

The 3PC segment is growing significantly across all four countries where Axactor offer the product. Several large contracts have been closed over the past year, providing strong momentum going forward. Additionally, the pipeline remains very healthy, further enhancing the segment outlook.

NPL collection performance was 101% in the first quarter, and Axactor expect to continue to deliver stable performance through 2025. Although the collections will still be impacted by macroeconomic conditions, legislation and geopolitical uncertainty, there are upsides from falling interest rates and an expected improvement in both the market for refinancing unsecured loans and in debtor's real disposable income. Falling interest rates and the planned deleveraging will also benefit Axactor in terms of reduced interest expenses. Furthermore, Axactor are accelerating its operational optimization program to enhance efficiency and reduce structural costs.

/Interim condensed consolidated financial statements

Interim condensed consolidated statement of profit or loss	12
Interim condensed consolidated statement of comprehensive income	13
Interim condensed consolidated statement of financial position	14
Interim condensed consolidated statement of cash flows	15
Interim condensed consolidated statement of changes in equity	16

	Notes to the interim condensed consolidated financial statements	17
Note 1	Reporting entity and accounting principles	17
Note 2	Financial risks	17
Note 3	Operating segments	19
Note 4	Financial items	21
Note 5	Revenue	22
Note 6	Purchased loan portfolios	24
Note 7	Interest-bearing loans and borrowings	26
Note 8	Leases	29
Note 9	Fair value of forward flow commitments	30
Note 10	Issued shares and share capital	31

Interim condensed consolidated statement of profit or loss

		For the quarter end/YTD
EUR thousand	Note	31 Mar 2025	31 Mar 2024	Full year 2024
Interest revenue from purchased loan portfolios	5, 6	49,745	54,238	222,038
Net gain/(loss) purchased loan portfolios	5, 6	-1,774	-9,900	-152,269
Revenue from sale of repossessed assets	5	1,865	499	3,968
Other operating revenue		15,169	11,731	54,200
Total revenue	3, 5	65,005	56,568	127,937
Cost of repossessed assets sold, incl impairment	7	-1,857	-153	-1,599
Personnel expenses		-16,495	-17,109	-63,541
Other operating expenses		-14,294	-13,083	-53,518
Total operating expenses		-32,646	-30,345	-118,658
EBITDA		32,359	26,223	9,279
Amortization and depreciation		-2,059	-2,163	-11,557
Operating profit /(loss)		30,300	24,060	-2,278
Financial revenue	4	2,660	44	8,437
Financial expenses	4	-19,507	-23,117	-91,238
Net financial items		-16,847	-23,073	-82,801
Profit/(loss) before tax		13,453	987	-85,079
Income tax expense		-3,363	-266	6,019
Net profit/(loss) after tax		10,090	720	-79,060

		For the quarter end/YTD
EUR thousand	Note	31 Mar 2025	31 Mar 2024	Full year 2024
Attributable to:
Non-controlling interests:
Net profit/(loss) after tax		-	45	466
Shareholders of the parent company:
Net profit/(loss) after tax		10,090	675	-79,526
Earnings per share:
Basic and diluted		0.033	0.002	-0.263

Interim condensed consolidated statement of comprehensive income

	For the quarter end/YTD
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Net profit/(loss) after tax	10,090	720	-79,060
Items that will not be reclassified subsequently to profit or loss
Remeasurement of pension plans	-	-	-6
Items that may be reclassified subsequently to profit or loss
Currency translation differences - foreign operations	6,053	-8,398	-9,419
Fair value net gain/(loss) on cash flow hedges during the period	-662	-	-407
Cumulative net gain/(loss) on cash flow hedges reclassified to profit or loss	84	-796	-3,185
Other comprehensive income/(loss) after tax	5,475	-9,195	-13,018
Total comprehensive income/(loss) for the period	15,564	-8,474	-92,077
Attributable to:
Non-controlling interests	-	45	466
Shareholders of the parent company	15,564	-8,519	-92,544

Interim condensed consolidated statement of financial position

EUR thousand	Note	31 Mar 2025	31 Mar 2024	Full year 2024	EUR thousand	Note	31 Mar 2025	31 Mar 2024	Full year 2024
Assets					Equity and liabilities
Non-current assets					Equity
Intangible assets					Share capital	10	158,369	158,369	158,369
Goodwill		59,531	59,018	58,871	Other paid-in equity		271,143	270,953	271,048
Deferred tax assets		9,020	8,056	12,320	Retained earnings		-51,561	27,758	-52,450
Other intangible assets		11,147	14,605	12,003	Other components of equity		-30,617	-32,275	-36,092
					Non-controlling interests		-	-9,622	-9,201
Tangible assets					Total equity		347,334	415,182	331,674
Property, plant and equipment		2,167	1,912	1,839
Right of use assets	8	8,025	10,721	7,820	Non-current liabilities
					Interest-bearing debt	7	847,628	925,868	884,728
Financial assets					Deferred tax liabilities		1,616	10,341	1,802
Purchased loan portfolios	6	1,095,322	1,235,256	1,087,472	Lease liabilities	8	7,119	8,117	7,083
Other non-current assets		2,239	512	1,431	Other non-current liabilities		2,015	4,320	4,570
Total non-current assets		1,187,451	1,330,079	1,181,757	Total non-current liabilities		858,377	948,646	898,183
Current assets					Current liabilities
Repossessed assets		3,697	4,237	4,180	Accounts payable		5,081	5,324	3,915
Accounts receivable		6,059	6,426	7,730	Taxes payable		1,251	4,141	2,406
Other current assets		37,599	27,984	37,151	Lease liabilities	8	3,394	3,178	3,348
Restricted cash		1,887	1,662	1,882	Other current liabilities		57,400	29,250	26,165
Cash and cash equivalents		36,145	35,333	32,991	Total current liabilities		67,126	41,893	35,834
Total current assets		85,386	75,641	83,934
					Total liabilities		925,503	990,539	934,017
Total assets		1,272,838	1,405,721	1,265,691
					Total equity and liabilities		1,272,838	1,405,721	1,265,691

Interim condensed consolidated statement of cash flows

		For the quarter end/YTD
EUR thousand	Note	31 Mar 2025	31 Mar 2024	Full year 2024
Operating activities
Profit/(loss) before tax		13,453	987	-85,079
Taxes paid		-2,610	-8,793	-23,584
Adjustments to reconcile profit before tax to net cash flows:
Net financial items	4	16,847	23,073	82,801
Portfolio amortization and revaluation		12,399	22,388	286,898
Change in fair value of forward flow commitments		-	120	120
Cost of repossessed assets sold, incl impairment		1,857	153	1,599
Depreciation and amortization		2,059	2,163	11,557
Calculated cost of employee share options		96	123	382
Change in working capital		36,542	2,136	-4,394
Cash flow from operating activities before NPL investments		80,642	42,350	270,300
Purchase of loan portfolios	6	-4,922	-13,246	-131,022
Purchases related to repossessed assets		-16	-17	-104
Net cash flow from operating activities		75,705	29,087	-139,174

		For the quarter end/YTD
EUR thousand	Note	31 Mar 2025	31 Mar 2024	Full year 2024
Investing activities
Purchase of intangible and tangible assets		-760	-720	-3,071
Net cash flow from investing activities		-760	-720	-3,071
Financing activities
Proceeds from borrowings	7	-	-	42,000
Repayment of debt	7	-53,815	-1,430	-89,321
Interest paid		-18,253	-21,746	-87,467
Interest received		308	35	5,451
Loan fees paid	7	-	-117	-117
Lease payments, principal amount	8	-846	-799	-3,731
Net cash flow from financing activities		-72,606	-24,058	-133,185
Net change in cash and cash equivalents		2,339	4,308	2,918
Cash and cash equivalents at the beginning of period		32,991	31,826	31,826
Currency translation		815	-801	-1,753
Cash and cash equivalents at end of period		36,145	35,333	32,991

Interim condensed consolidated statement of changes in equity

	Equity attributable to the shareholders of the parent company
	Restricted	Non-restricted
EUR thousand	Share capital	Other paid in equity		Retained earnings Translation reserve	Cash flow hedge reserve	Total	Non-controlling interests 1	Total equity
Balance on 31 Dec 2023	158,369	270,831	27,082	-28,912	5,832	433,202	-9,667	423,534
Result of the period			675			675	45	720
Other comprehensive income of the period			-	-8,398	-796	-9,195		-9,195
Total comprehensive income for the period	-	-	675	-8,398	-796	-8,519	45	-8,474
Share-based payment		122				122		122
Balance on 31 Mar 2024	158,369	- 270,953	27,758	-37,310	5,035	424,804	-9,622	415,182
Balance on 31 Dec 2024	158,369	271,048	-52,450	-38,332	2,240	340,875	-9,201	331,674
Result of the period			10,090			10,090	-	10,090
Other comprehensive income of the period				6,053	-578	5,475		5,475
Total comprehensive income for the period	-	-	10,090	6,053	-578	15,564	-	15,564
Acquisition of non-controlling interests 1			-9,201			-9,201	9,201	-
Share-based payment		96				96		96
Balance on 31 Mar 2025	158,369	- 271,143	-51,561	-32,279	1,662	347,335	-	347,334

¹ Axactor ASA acquired the remaining 50 percent of the shares in Reolux Holding S.à r.l in the first quarter 2025

Notes to the interim condensed consolidated financial statements

Note 1 Reporting entity and accounting principles

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 policies applied correspond to those described in the annual report 2024. 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 2024.

In preparing these interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenue and expenses. Actual result may differ from these estimates.

Accounting policies and significant judgements, estimates and assumptions are more comprehensively discussed in the annual report 2024. The significant judgements made by management applying the Group's accounting policies and the key sources 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.

All prior year figures presented are for continuing operations, unless otherwise stated.

Note 2 Financial risks

All economic activities are associated with risk. Axactor's risks are managed within the Group in accordance with the policies established by the Board. For more information on financial risks and risk management, one is referred to note 3 of the Group's financial statements in the annual report 2024.

Interest rate and currency risk

The Group's long-term strategy is to hedge between 50% and 70% of interest-bearing debt with a duration of three to five years. The Group is gradually implementing the strategy in line with new portfolio investments by entering into interest rate swap agreements. These instruments are recognized as hedge instruments to reduce the interest volatility in the income statement.

The Group aims to reduce currency risk by keeping interest-bearing debt in the same currencies as the Group's assets. The Group also holds cross currency interest rate swaps to reduce currency risk.

Liquidity risk

The Group monitors its risk of a shortage of funds using cash flow forecasts regularly. On 31 Mar 2025, the Group had an unused part of the RCF agreement of EUR 70.3 million, in addition to unrestricted cash and cash equivalents of EUR 36.1 million. The Group had positive cash flow from operating activities before NPL investments of EUR 80.6 million in first quarter 2025, and cash flows from operating activities amounted to EUR 75.7 million.

The table of contractual maturities analyses non-derivative financial liabilities of the Group into relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. The contractual maturity is based on the earliest date on which the Group may be required to pay. The amounts disclosed in the table are the contractual undiscounted cash flows of liabilities. For NPL investment commitments, 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. The loan repayment amounts presented are subject to change dependent on changes in variable interest rates. To the extent that interest rates are floating, the undiscounted payable interest is derived from the interest rate curves at the end of the reporting period.

The Group's estimated remaining collections from purchased loan portfolios for the next 15 years are presented below the table of contractual maturities (see also note 6).

	Contractual maturities per 31 Mar 2025
EUR thousand	1 year	1-2 years	2-4 years	4+ years	Total
NPL investment commitments, non-cancellable 1	5,094	635	-	-	5,729
NPL investment commitments, cancellable 1	1,571	-	-	-	1,571
Revolving credit facility (RCF)	26,018	420,312	-	-	446,330
Bond ACR03 (ISIN NO0011093718)	13,640	221,072	-	-	234,712
Bond ACR04 (ISIN NO0013005264)	23,646	23,581	211,563	-	258,790
Other non-current liabilities	-	-	-	2,015	2,015
Accounts payable	5,081	-	-	-	5,081
Lease liabilities	3,979	3,482	2,436	2,220	12,117
Other current liabilities	57,471	-	-	-	57,471
Total contractual maturities	136,501	669,081	213,999	4,235	1,023,816

¹ Expected cash flows based on the last three months' actual deliveries and future deliveries on new agreements confirmed at the balance sheet date. Per 31 March 2025, cash flows are limited to EUR 13.3 million by contracted capex limits. The NPL commitments that are cancellable are cancellable with one to three months' notice.

	ERC per 31 Mar 2025
EUR thousand	1 year	1-2 years	2-4 years	4+ years	Total
Estimated remaining collections (ERC)	256,502	273,087	507,424	1,308,672	2,345,686

Note 3 Operating segments

Axactor delivers credit management services and the Group's revenue is derived from the following two operating segments:

• Non-performing loans (NPL)

• Third-party collection (3PC)

The NPL segment invests in portfolios of non-performing loans, presented as 'Purchased loan portfolios' in the consolidated statement of financial position. Subsequently, the outstanding loans are 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 normally receive a commission for these services. Other services provided include, amongst others, 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 normally 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 revenue 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. The measurement basis of the performance of the segment is the segment's contribution margin.

For the quarter end / YTD 31 Mar 2025

			Eliminations/
EUR thousand	NPL	3PC	Not allocated	Total
Collections on own portfolios	60,370	-	-	60,370
Portfolio amortization and revaluation	-12,399	-	-	-12,399
Revenue from sale of repossessed assets	1,865	-	-	1,865
Other operating revenue:
Change in fair value forward flow commitments	-	-	-	-
Other operating revenue and other revenue	-	15,169	-	15,169
Total revenue	49,836	15,169	-	65,005
Cost of repossessed assets sold	-1,857	-	-	-1,857
Impairment repossessed assets	-	-	-	-
Direct operating expenses	-9,824	-10,119	-	-19,943
Contribution margin	38,155	5,050	-	43,204
SG&A, IT and corporate cost			-10,846	-10,846
EBITDA				32,359
Amortization and depreciation			-2,059	-2,059
Operating result				30,300
Total operating expenses	-11,681	-10,119	-10,846	-32,646
Contribution margin (%)	76.6%	33.3%	na	66.5%
EBITDA margin (%)				49.8%
Opex ex SG&A, IT and corporate cost / Gross revenue	18.8%	66.7%	na	28.2%
SG&A, IT and corporate cost / Gross revenue				14.0%

For the quarter end / YTD 31 Mar 2024

EUR thousand	NPL	3PC	Eliminations/ Not allocated	Total
Collections on own portfolios	66,726	-	-	66,726
Portfolio amortization and revaluation	-22,388	-	-	-22,388
Revenue from sale of repossessed assets	499	-	-	499
Other operating revenue:
Change in fair value forward flow commitments	-120	-	-	-120
Other operating revenue and other revenue	-	11,851	-	11,851
Total revenue	44,716	11,851	-	56,568
Cost of repossessed assets sold	-153	-	-	-153
Impairment repossessed assets	-	-	-	-
Direct operating expenses	-10,846	-8,074	-	-18,920
Contribution margin	33,717	3,777	-	37,494
SG&A, IT and corporate cost			-11,271	-11,271
EBITDA				26,223
Amortization and depreciation			-2,163	-2,163
Operating result				24,060
Total operating expenses	-10,999	-8,074	-11,271	-30,345
Contribution margin (%)	75.4%	31.9%	na	66.3%
EBITDA margin (%)				46.4%
Opex ex SG&A, IT and corporate cost / Gross revenue	16.4%	68.1%	na	24.1%
SG&A, IT and corporate cost / Gross revenue				14.3%

Full year 2024

EUR thousand	NPL	3PC	Eliminations/ Not allocated	Total
Collections on own portfolios	356,667	-	-	356,667
Portfolio amortization and revaluation	-286,898	-	-	-286,898
Revenue from sale of repossessed assets	3,968	-	-	3,968
Other operating revenue:
-Change in fair value forward flow commitments	-120	-	-	-120
-Other operating revenue and other revenue	-	54,320	-	54,320
Total revenue	73,617	54,320	-	127,937
Cost of repossessed assets sold	-1,599	-	-	-1,599
Impairment repossessed assets	-	-	-	-
Direct operating expenses	-41,143	-33,818	-	-74,961
Contribution margin	30,875	20,502	-	51,377
SG&A, IT and corporate cost			-42,098	-42,098
EBITDA				9,279
				-11,557
				-2,278
Total operating expenses	-42,742	-33,818	-42,098	-118,658
Contribution margin (%)	41.9%	37.7%	na	40.2%
EBITDA margin (%)				7.3%
Opex ex SG&A, IT and corporate cost / Gross revenue	11.9%	62.3%	na	18.5% 10.1%
Amortization and depreciation Operating result SG&A, IT and corporate cost / Gross revenue			-11,557

Note 4 Financial items

EUR thousand		For the quarter end / YTD
	31 Mar 2025	31 Mar 2024	Full year 2024
Financial revenue
Interest on bank deposits	308	35	5,451
Net foreign exchange gain 1	1,118	-	352
Gain on purchase of treasury bonds (note 7)	1,214	-	2,554
Other financial revenue	21	9	79
Total financial revenue	2,660	44	8,437
Financial expenses
Interest expense on borrowings	-19,276	-22,425	-89,141
Net foreign exchange loss 1	-	-387	-
Other financial expenses	-231	-305	-2,097
Total financial expenses	-19,507	-23,117	-91,238
Total net financial items	-16,847	-23,073	-82,801

¹ Foreign exchange gains and losses are presented net as either financial revenue or financial expenses, depending on the net position. The amount includes changes in fair value of currency derivatives.

Note 5 Revenue

The Group delivers credit management services in six European countries: Finland, Germany, Italy, Norway, Spain and Sweden. Axactor also owns some portfolios through an entity based in Luxembourg.

The Group's revenue from from external customers by location of operations and information about its non-current assets by location of assets are detailed below.

The information in the table presented is based on the location of the debtors and the country of the company performing the collection (which correspond). This is not necessarily the same as the country owning the portfolio. The same principle is used for the allocation of the non-current assets. Non-current assets presented in the table consists of intangible assets, goodwill, property, plant and equipment and right of use assets.

Total revenue

		For the quarter end / YTD
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Finland	1,720	654	4,236
Germany	7,892	9,104	6,618
Italy	9,230	10,106	25,493
Norway	10,638	9,357	15,845
Spain	30,549	22,286	85,999
Sweden	4,977	5,062	-10,254
Total revenue	65,005	56,568	127,937

Non-current assets

	Book value
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Finland	2,995	2,920	3,036
Germany	13,370	15,626	13,530
Italy	16,098	15,777	15,317
Norway	27,208	28,996	27,221
Spain	19,173	19,932	19,388
Sweden	2,026	3,005	2,041
Total revenue	80,870	86,256	80,533

Portfolio revenue

Portfolio revenue consists of interest revenue from purchased loan portfolios, net gain/(loss) from purchased loan portfolios and revenue from sale of repossessed assets. Net gain/(loss) from purchased loan portfolios is split into collections above/(below) collection forecasts and net present value of changes in collection forecasts.

Full year 2024

For the quarter end / YTD 31 Mar 2025

EUR thousand	Finland	Germany	Italy	Norway	Spain	Sweden	Total
Interest revenue from purchased loan portfolios	3,367	7,296	7,409	8,942	17,242	5,490	49,745
Collections above/(below) forecasts NPV of changes in collection forecasts	-541 -1,107	-476 -682	-624 -573	-220 -614	2,784 792	-725 212	197 -1,971
Net gain/(loss) purchased loan portfolios	-1,648	-1,158	-1,198	-834	3,576	-513	-1,774
Sale of repossessed assets					1,865		1,865
Total portfolio revenue	1,719	6,138	6,211	8,107	22,684	4,977	49,836

EUR thousand	Finland	Germany	Italy	Norway	Spain	Sweden	Total
Interest revenue from purchased loan portfolios	14,813	35,214	30,212	38,375	78,405	25,020	222,038
Collections above/(below) forecasts	-2,080	-9,775	-3,204	-6,691	-7,457	-2,808	-32,016
NPV of changes in collection forecasts	-8,534	-25,029	-12,864	-22,815	-18,546	-32,465	-120,253
Net gain/(loss) purchased loan portfolios	-10,614	-34,805	-16,068	-29,506	-26,002	-35,274	-152,269
Sale of repossessed assets					3,968		3,968
Total	4,199	409	14,144	8,869	56,371	-10,254	73,737

For the quarter end / YTD 31 Mar 2024

EUR thousand	Finland	Germany	Italy	Norway	Spain	Sweden	Total
Interest revenue from purchased loan portfolios	3,888	9,167	7,461	9,623	17,702	6,397	54,238
Collections above/(below) forecasts	-837	-1,713	106	-1,765	-531	-437	-5,176
NPV of changes in collection forecasts	-2,404	105	-15	47	-1,559	-898	-4,724
Net gain/(loss) purchased loan portfolios	-3,240	-1,609	91	-1,718	-2,089	-1,335	-9,900
Sale of repossessed assets					499		499
Total portfolio revenue	647	7,558	7,552	7,905	16,112	5,062	44,837

Note 6 Purchased loan portfolios

Purchased loan portfolios consists of portfolios of delinquent consumer debts purchased significantly below nominal value, reflecting incurred and expected credit losses, and thus defined as credit impaired. For purchased loan portfolios, timely collection of principal and interest is no longer reasonably assured at the date of purchase. Purchased loan portfolios 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 losses is recorded 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 majority of the purchased loan portfolios are unsecured, whereas approximately 9% of the book value of the loans are secured by a property object per 31 March 2025 (2024: 6%)

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. Changes in expected cash flows are adjusted in the carrying amount and are recognized in the profit or loss as revenue or expense in 'Net gain/ (loss) purchased loan portfolios'. Interest revenue is recognized using a credit adjusted effective interest rate, included in 'Interest revenue from purchased loan portfolios'.

The estimation of future cash flows is affected by several factors, including general macro factors, market specific factors, portfolio specific factors and internal factors. Axactor has incorporated into the estimated remaining collections the effect of the economic factors and conditions that is expected to influence collections going forward. Scenarios have been used to consider possible non-linear relationships between macroeconomic factors and collections.

For more information on accounting principles and a description of significant accounting judgments, estimates and assumptions related to purchased loan portfolios, see note 2.10.1 and note 4 in the Group's annual report 2024.

	For the quarter end / YTD
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Balance at start of period	1,087,472	1,265,327	1,265,327
Acquisitions during the period	5,156	10,764	127,757
Collections	-60,370	-66,726	-356,667
Interest revenue from purchased loan portfolios	49,745	54,238	222,038
Net gain/(loss) purchased loan portfolios	-1,774	-9,900	-152,269
Repossessions	-1,357	-1,708	-3,077
Deliveries on forward flow contracts	-	185	185
Currency translation differences	16,451	-16,924	-15,822
Balance at end of period	1,095,322	1,235,256	1,087,472

Acquisitions during the period can be split into nominal value of the acquired portfolios and expected credit losses at acquisition as follows:

	For the quarter end / YTD
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Nominal value acquired portfolios	6,943	482,448	3,780,879
Expected credit losses at acquisition	-1,787	-471,684	-3,653,122
Acquisitions during the period	5,156	10,764	127,757

Purchase of loan portfolios presented in the consolidated statement of cash flows will not correspond to acquisitions during the period due to deferred payments.

The book value of purchased loan portfolios per market is presented in the table below:

	31 Mar 2025		31 Mar 2024		31 Dec 2024
EUR thousand	Book value	% of total	Book value	% of total	Book value	% of total
Finland	100,051	9%	113,962	9%	102,351	9%
Germany	150,126	14%	185,728	15%	152,474	14%
Italy	154,958	14%	163,982	13%	158,001	15%
Norway	219,843	20%	234,378	19%	212,450	20%
Spain	295,036	27%	343,060	28%	297,245	27%
Sweden	175,308	16%	194,146	16%	164,951	15%
Total book value	1,095,322	100%	1,235,256	100%	1,087,472	100%

The ERC represents the estimated gross collections on the purchased loan portfolios. ERC, amortization, and interest income from purchased loan portfolios per year are specified below (year 1 means the first 12 months from the reporting date):

EUR thousand	Estimated remaining collections (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
31 Mar 2025
ERC	256,502	273,087	266,223	241,201	208,781	179,356	160,456	143,962	129,184	110,588	94,740	83,700	74,592	65,250	58,062	2,345,686
Amortization	63,276	95,792	111,278	108,371	96,123	82,211	76,407	71,942	68,454	60,442	53,964	51,771	51,458	50,963	52,870	1,095,322
Interest revenue	193,226	177,295	154,945	132,830	112,658	97,145	84,049	72,020	60,730	50,146	40,776	31,929	23,135	14,287	5,192	1,250,363
31 Mar 2024
ERC	308,983	298,478	282,842	251,985	218,742	190,965	171,414	154,601	139,430	125,778	107,394	91,227	79,304	70,941	63,015	2,555,097
Amortization	104,332	114,306	120,773	112,967	99,248	87,773	81,653	77,390	74,051	71,781	64,251	57,834	55,176	56,031	57,691	1,235,256
Interest revenue	204,651	184,173	162,068	139,018	119,494	103,191	89,761	77,211	65,380	53,996	43,143	33,393	24,128	14,909	5,324	1,319,841

Note 7 Interest-bearing loans and borrowings

					Carrying amount,
EUR thousand	Currency	Facility limit	Nominal value	Treasury bonds	EUR	Interest coupon	Maturity
Facility
Bond ACR03 (ISIN NO0011093718)	EUR		300,000	-116,910	181,649	3m EURIBOR + 535bps	15.09.2026
Bond ACR04 (ISIN NO0013005264)	NOK		201,487	-1,715	198,539	3m NIBOR + 825bps	07.09.2027
Total bond loans			501,487	-118,625	380,189
Revolving credit facility	EUR		322,294		315,074	EURIBOR + margin	30.06.2026
(multi-currency facility)	SEK		152,366		152,366	STIBOR + margin	30.06.2026
Total credit facilities		545,000	474,659		467,439
Total interest-bearing loans and borrowings at end of period			976,146	-118,625	847,628

Change in loans and borrowings from financial activities

EUR thousand	Bond loan	Credit facilities	Total borrowings
Balance on 1 Jan	421,764	462,964	884,728
Repayment of loans and borrowings	-48,815	-5,000	-53,815
Total changes in financial cash flow	-48,815	-5,000	-53,815
Amortization of capitalized loan fees	750	1,359	2,110
Currency translation differences	6,489	8,116	14,605
Other non-cash movements		-	-
Total interest-bearing loans and borrowings at end of period	380,189	467,439	847,628

Maturity

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

				Estimated future cash flow within
EUR thousand	Currency	Carrying amount	Total estimated future cash flow	6 months or less	6-12 months	1-2 years	2-5 years
Bond ACR03 (ISIN NO0011093718)	EUR	181,649	234,712	7,068	6,572	221,072	-
Bond ACR04 (ISIN NO0013005264)	NOK	198,539	258,791	12,075	11,572	23,581	211,563
Total bond loan		380,189	493,502	19,143	18,145	244,652	211,563
Revolving credit facility (multi-currency facility)	EUR/SEK	467,439	446,330	13,491	12,527	420,312	-
Total credit facilities		467,439	446,330	13,491	12,527	420,312	-
Total interest-bearing loans and borrowings at end of period		847,628	939,833	32,634	30,672	664,964	211,563

Revolving credit facility DNB/Nordea

The revolving credit facility consists of EUR 545 million in a multi-currency facility. The loan carries a variable interest rate based on the interbank rate in each currency with a margin. The maturity date for the facility is 30 June 2026.

The following financial covenants apply:

• NIBD ratio to pro-forma adjusted cash EBITDA ≤ 3:1 (secured loans (RCF) less cash to pro-forma adjusted cash EBITDA L12M)
• Portfolio loan to value ratio ≤ 60% (NIBD to total book value of loan portfolios)
• Portfolio collection performance ≥ 90% (actual portfolio performance L6M to active forecast L6M)
• Parent loan to value ≤ 80% (total loans for the Group less cash to total book value of all loan portfolios and REOs)

Axactor is compliant with all covenants.

All subsidiaries of the Group, except Reolux Holding S.à r.l. and its subsidiaries, are part of the security package for this facility. The subsidiaries that are part of the security package are guarantors and have granted a share pledge and a bank account pledge with the exception of Axactor Italy SpA and the subsidiaries of Axactor Portfolio Holding where there is only granted a share pledge.

Bond loans

ACR03 (ISIN NO0011093718)

The bond was placed at 3m EURIBOR + 5.35% interest, with maturity date 15 September 2026. The bond is listed on Oslo Børs. On 31 December 2024, the Group holds treasury bonds in ACR03 with a nominal value of EUR 70 million.

ACR04 (ISIN NO0013005264)

The bond was placed at 3m NIBOR + 8.25% interest, with maturity date 7 September 2027. The bond is listed on Oslo Børs.

The following financial covenants apply to both bond loans:

• Interest coverage ratio: ≥ 3.0x (Pro-forma adjusted Cash EBITDA to net interest expenses)
• Leverage ratio: ≤ 4.0x (NIBD to pro-forma adjusted cash EBITDA)
• Net loan to value: ≤ 80% (NIBD to total book value all loan portfolios and REOs)
• Net secured loan to value: ≤ 60% (secured loans less cash to total book value all loan portfolios and REOs)

Axactor is compliant with all covenants.

Trustee: Nordic Trustee

Note 8 Leases

Right of use assets

EUR thousand	Buildings	Vehicles	Other	Total
Right of use assets on 31 Dec 2023	10,711	792	101	11,604
Additions	118	47	-	166
Depreciation	-717	-95	-13	-824
Disposals	-62	-18	-	-81
Currency translation differences	-141	-3	-1	-144
Right of use assets on 31 Mar 2024	9,910	723	88	10,721
Right of use assets on 31 Dec 2024	7,176	594	50	7,820
Additions	1,142	113	-	1,255
Depreciation	-591	-109	-13	-712
Disposals	-409	-	-	-409
Currency translation differences	66	5	-	71
Right of use assets on 31 Mar 2025	7,384	603	38	8,025
Remaining lease term	1-8 years	1-4 years	1-3 years
Depreciation method	Linear	Linear	Linear

Lease liabilities

EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Lease liabilities on 1 Jan	10,430	12,163	12,163
Net new leases	846	84	2,153
Lease payments, principal amount	-846	-799	-3,731
Currency translation differences	83	-153	-155
Lease liabilities at period end	10,513	11,294	10,430
Current	3,394	3,178	3,348
Non-current	7,119	8,117	7,083

The future aggregated minimum lease payments under lease liabilities are as follows:

EUR thousand	31 Mar 2025	31 Mar 2024	31 Dec 2024
Undiscounted lease liabilities and maturity of cash outflows
< 1 year	3,979	3,774	3,892
1-2 years	3,482	3,459	3,683
2-3 years	1,371	2,881	1,575
3-4 years	1,065	929	959
4-5 years	852	627	696
> 5 years	1,368	1,152	977
Total undiscounted lease liabilities	12,117	12,822	11,781
Discounting element	-1,604	-1,527	-1,350
Total lease liabilities	10,513	11,295	10,430

Note 9 Fair value of forward flow commitments

Changes in the fair value of forward flow commitments are shown below. For additional information, see note 2.10.2 in the Group's annual report 2024.

EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Balance on 1 Jan	-	311	311
Value change	-	-120	-120
Deliveries	-	-185	-185
Currency translation differences	-	-5	-5
Balance at period end	-	-	-

Note 10 Issued shares and share capital

Issued shares and share capital

Number of shares	Share capital (EUR)
	158,368,902
302,145,464	158,368,902
302,145,464	158,368,902
	302,145,464

Shares owned by the Board and Group executive management on 31 Mar 2025

Name	Shareholding	Share %
Latino Invest AS/Johnny Tsolis 1	2,170,000	0.7%
Terje Mjøs Holding AS 2	750,000	0.2%
Karl Mamelund 3	276,858	0.1%
Vibeke Ly 3	240,850	0.1%
Arnt Andre Dullum 3	200,000	0.1%
Nina Mortensen 3	160,000	0.1%
Kyrre Svae 3	80,000	-
Kjersti Høklingen 2	21,000	-
Brita Eilertsen 2	19,892	-
Ørjan Svanevik, through Oavik Capital AS 2	13,000	-

¹ CEO/related to the CEO of Axactor ASA

² Member of the Board/controlled by member of the Board

³ Member of the Group executive management

20 largest shareholders on 31 Mar 2025

Name	Shareholding	Share %
Geveran Trading Company Ltd	150,385,439	49.8%
Skandinaviska Enskilda Banken AB	11,000,000	3.6%
Dnb Markets Aksjehandel/-Analyse	10,019,900	3.3%
Skandinaviska Enskilda Banken AB	5,279,467	1.7%
J.P. Morgan Se	4,454,162	1.5%
Spectatio Finans AS	3,786,728	1.3%
Stiftelsen Kistefos	3,000,000	1.0%
Stavern Helse og Forvaltning AS	3,000,000	1.0%
Nordnet Livsforsikring AS	2,900,121	1.0%
Nordnet Bank AB	2,676,051	0.9%
Siljan Industrier AS	2,235,306	0.7%
Latino Invest AS/Johnny Tsolis	2,170,000	0.7%
Endre Rangnes	2,017,000	0.7%
Alpette AS	1,661,643	0.5%
Gvepseborg AS	1,332,826	0.4%
Andres Lopez Sanchez	1,177,525	0.4%
David Martin Ibeas	1,177,525	0.4%
Øen Holding AS	1,100,000	0.4%
Øvrum Invest AS	1,009,384	0.3%
Ragnar Flak Thomassen	992,090	0.3%
Total 20 largest shareholders	211,375,167	70.0%
Other shareholders	90,770,297	30.0%
Total number of shares	302,145,464	100%
Total number of shareholders	7,495

/ Alternative performance measures

Alternative performance measures (APMs) used in Axactor

APM	Definition	Purpose of use	Reconciliation IFRS
Gross revenue	Total revenue plus portfolio amortizations and revaluation, and change in fair value of forward flow commitments	To review the revenue before split into interest and amortization (for own portfolios)	Total revenue from consolidated statement of profit or loss plus portfolio amortization and revaluation and change in fair value of forward flow commitments in the consolidated statement of cash flows
Cash EBITDA	EBITDA adjusted for calculated cost of share option program, portfolio amortization and revaluation, change in fair value of forward flow commitments and cost of sold repossessed assets and impairment	To reflect cash from operating activities, excluding timing of taxes paid and movement in working capital	EBITDA (total revenue 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 adjusted for cost of repossessed assets sold, including impairment	To reflect cash from operating activities, excluding timing of taxes paid and movement in working capital	EBITDA (total revenue minus total operating expenses) in consolidated statement of profit or loss, adjusted for specified elements from the consolidated statement of cash flows
Estimated remaining collections (ERC)	Estimated remaining collections express the expected future cash collections on purchased loan portfolios 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 collections including estimated interest revenue and opex	Purchased loan portfolios in the consolidated statement of financial position, plus estimated operating expenses for future collections at time of acquisition and estimated discounted gain
Net interest-bearing debt (NIBD)	Net interest-bearing debt reflects total interest-bearing debt less total amount of unrestricted cash and cash equivalents	NIBD is used as an indication of the Group's ability to pay off all of its debt	Non-current and current portion of interest-bearing debt and cash and cash equivalents from the consolidated statement of financial position with adjustments to get to nominal value of the debt, less treasury bonds
Return on equity to shareholders, annualized	Net profit/(loss) after tax 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 divided by average equity attributable to shareholders from the consolidated statement of changes in equity
Return on equity, annualized	Net profit/(loss) after tax divided by average total equity for the period, annualized	Measures the profitability in relation to total equity	Net profit/(loss) after from the consolidated statement of profit or loss divided by average total equity from the consolidated statement of changes in equity

Gross revenue

For the quarter end / YTD
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Total revenue	65,005	56,568	127,937
Portfolio amortization and revaluation	12,399	22,388	286,898
Change in fair value of forward flow commitments	-	120	120
Gross revenue	77,404	79,076	414,956

Estimated remaining collections (ERC)

	For the quarter end / YTD
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Purchased loan portfolios	1,095,322	1,235,256	1,087,472
Estimated opex for future collections at time of acquisition	367,087	359,560	367,087
Estimated discounted gain	883,276	960,280	885,170
Estimated remaining collections (ERC)	2,345,686	2,555,097	2,339,729

EBITDA and Cash EBITDA

	For the quarter end / YTD
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Total revenue	65,005	56,568	127,937
Total operating expenses	-32,646	-30,345	-118,658
EBITDA	32,359	26,223	9,279
Calculated cost of share option program	96	123	382
Portfolio amortization and revaluation	12,399	22,388	286,898
Change in fair value of forward flow commitments	-	120	120
Cost of repossessed assets sold, incl. impairment	1,857	153	1,599
Cash EBITDA	46,711	49,007	298,278
Taxes paid	-2,610	-8,793	-23,584
Change in working capital	35,180	2,136	-4,394
Cash flow from operating activities before NPL investments	79,281	42,350	270,300

Net interest-bearing debt (NIBD)

Full year 2024
884,728
884,728
12,004
-32,991
863,740

Return on equity to shareholders, annualized

EUR thousand	For the quarter end
	31 Mar 2025	31 Mar 2024	Full year 2024
Net profit/(loss) after tax attributable to shareholders of the parent company	10,090	675	-79,526
Average equity for the period related to shareholders of the parent company	344,105	429,003	411,687
Return on equity to shareholders, annualized	11.9%	0.6%	-19.3%

Return on equity, annualized

		For the quarter end
EUR thousand	31 Mar 2025	31 Mar 2024	Full year 2024
Net profit/(loss) after tax	10,090	720	-79,060
Average total equity for the period	339,504	419,358	402,223
Return on equity, annualized	12.1%	0.7%	-19.7%

/ Glossary

Terms

Active forecast	Forecast of estimated remaining collections on purchased loan 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 revenue
Collection performance	Gross collections on purchased loan 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 loan portfolios at agreed prices and delivery
Gross IRR	The credit adjusted interest rate that makes the net present value of ERC equal to the book value of purchased loan portfolios, calculated using monthly cash flows over a 180-months period

Group	Axactor ASA and all its subsidiaries
NPL amortization rate	Portfolio amortization divided by collections on own portfolios for the NPL segment
NPL cost-to-collect ratio	NPL cost to collect divided by NPL total revenue excluding NPV of changes in collection forecasts and change in fair value of forward flow commitments
One off portfolio acquisition	Acquisition of a single loan portfolio
Opex	Total operating expenses
Recovery rate	Portion of the original debt repaid
Replacement capex	Amount of acquisitions of new loan portfolios needed to keep the book value of purchased loan portfolios constant compared to last period
Repossession	Taking possession of property due to default on payment of loans secured by property
Repossessed assets	Property repossessed from secured loan portfolios
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

Abbreviations

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)
BV	Book value
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 collections
ESG	Environmental, social and governance
ESOP	Employee stock ownership plan

FSA	The financial supervisory authority
FTE	Full time equivalent
GHG	Greenhouse gas emissions
HQ	Headquarters
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

Highlights Key figures Operations Financials APM Glossary