Axactor SE

Earnings Release • May 8, 2017

May 8, 2017

1 st Quarter 2017 – Axactor AB

Key highlights Q1

• Positive EBITDA for the first time with EUR 1.0 million reported for the quarter
• Acquired Profact, Sweden, 35 people. Fully licensed to acquire and collect on NPLs in Sweden
• Large NPL portfolio acquired from Bank Norwegian in Sweden; estimated gross collection first year EUR 8 million
• First Nordic forward flow deal secured
• 3 rd tranche of EUR 25 million released from DNB and Nordea

* Prior to paying for and financing of the BN portfolio

Events after Q1

Balanced revenue mix

• Axactor represented in 3 of the largest NPL markets in Europe (GER, ITA and SPA)
• Established in Sweden with large NPL acquisition in Q1
• Well balanced revenue mix geographically
• Nordic share of revenue will grow significantly in 2017

Balanced revenue mix

• 6.5% revenue growth in Q1 versus previous quarter
• Growth comes from NPL collections
• Main growth driver is the large Spanish portfolio acquired in 12/2016, and improved NPL collections in Spain
• Payment services being rolled out in SWE and GER during 2017

0 2 4 6 8 10 12 14 16 18 20 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 EUR million Revenue Development per Product Portfolio revenue 3PC revenue Payment Services

Axactor milestones last 4 quarters

1H 2017 Main Focus Areas NPL acquisitions – Primary Sales from FI

Extend existing products to new markets

Integration of Profact in Sweden

Operational improvements and systems implementation

Co-invest to increase CAPEX capacity

• Growth in the "Forward Flow deals" segment
• NPL Portfolios sales increase in size
• Roll-out of Payment Services in SWE and GER
• Successfully onboarded the Bank Norwegian portfolio
• Strengthening the organization & Rebranding
• New collection systems in all countries
• Implementing standard IT platform and systems
• Discussions in process with several potential co-investors, including Bank Financing with 50% (plus) gearing

Behind plan Amber – Plan initiated On Track	System/ Standard	Overall status	Planned completion	Planned completion	Planned completion	Planned completion	Planned completion
COLLECTION SYSTEM	Country specific			May-17			
DIALER	Axactor Standard			Q3/Q4-17		Q3/Q4-17	Q3/Q4-17
IT INFRASTRUCTURE	Axactor Standard		Phase I  Phase II – Q3-17			Q4-17	Q3-17
ERP SYSTEM/ INC. HR	Axactor Standard		Phase I  Phase II – Q2-17		Phase I  Phase II – Q3-17	Phase I – Q3-17 Phase II – Q4-17	Phase I Q2 Phase II – TBD
DEBTOR PORTAL	Axactor Standard		H2-17	H2-17	H2-17		H2-17
BUSINESS INTELLIGENCE/ DATA WAREHOUSE	Axactor Standard		Q3-17	Q4-17	Q3-17	Q4-17	Q4-17

Status Operational Improvements & Systems Implementation

Key financials Q1-17

Income statement		Key comments
		• 6.5% revenue growth compared to Q4-16
		• EBITDA positive for the first time
		• Cash EBITDA positive for the last three quarters
		• Interest cost for the quarter is EUR 1.1 million
		currency

• 6.5% revenue growth compared to Q4-16
• EBITDA positive for the first time
• Cash EBITDA positive for the last three quarters • Profact included with 1 month trading in Q1
• Interest cost for the quarter is EUR 1.1 million
• Unrealized FX significantly reduced with EUR as reporting currency

Q1 Balance Sheet

Assets			Equity and liabilities

EURO 1000'	31.03.2017	31.03.2016	31.12.2016
Equity for equity holders of the parent
Share capital	64 964	35 539	64 964
Other paid-in capital	262 414	166 998	262 414
Retained earnings for the period	$-147205$	$-141341$	$-145839$
Reserves	1 1 7 5	$-208$	2 1 9 4
Non-controlling interests			0
Total equity	181 348	60 988	183 733
Non-current liabilities
Non-current interest bearing debt Convertible loan	23 152		25 149
Deferred tax liabilities	5913	1 1 7 2	5 9 6 0
Other non-current liabilities	3 2 2 3	315	3 3 8 5
Total long term liabilities	32 287	1 4 8 7	34 495
Current liabilities
Accounts payable	5911	1469	6649
Current portion of non-current borro	42 891		48 852
Taxes Payable	1 1 6 2		387
Other current liabilities	77 238	9 3 9 4	8 9 5 4
Total current liabilities	127 203	10 862	64 843
TOTAL EQUITY AND LIABILITIES	340 837	73 338	283 071

Portfolio Statistics

• ERC increase of 35% compared to previous quarter • All countries with 15 years collection curves

• Next 12 months we expect to collect EUR 54 million from current NPL portfolios

Historical Development ERC

Portfolio Statistics

• Includes portfolios held by platform companies at the time of

acquisition

Book value Portfolios

Debt and Leverage

DNB/Nordea RCF

• In May 2017 the last tranche was increased to EUR 45m and made available to the company

• Gearing on last two portfolios is 50%. • Going forward we will on case-by-case basis assume

• 50% gearing. • ReFi discussions started in Q2

Italy (Outside DNB/Nordea ring fence)

• 100% gearing on portfolios @ 3m EURIBOR + 2%,
• Total NPL facilities has been increased to EUR 55m whereof EUR 29m is utilized.
• 8m is utilized.

• Overdraft facilities increased to EUR 14m whereof EUR

Summary

• Positive EBITDA and Cash EBITDA
• DNB/Nordea facility last tranche upsized to EUR 45m and released in May
• Increased credit lines to EUR 55m in Italy
• Refinancing process with banks initiated
• Bank Norwegian portfolio fully onboarded gives significant business volume increase/ERC • Co invest discussions in process – increases investment capacity significantly
• Continued focus on integration and system implementation
• Strong 2Q & 4Q NPL portfolio sales pipeline