Axactor SE

Earnings Release • Apr 26, 2019

Axactor off to a strong start in 2019

Axactor off to a strong start in 2019

Axactor continued its profitable growth journey and reinforced the position as a leading European debt management provider in the first quarter of 2019. Gross collection and net revenue more than doubled year-over-year, to EUR 91 million and EUR 74 million, respectively.

EBITDA more than tripled to EUR 22 million with the EBITDA-margin improving to 30%, showing the scalability and efficiency of the business model. Cash EBITDA also more than tripled to EUR 59 million, reflecting solid collection performance and increasing REO sales.

Portfolio investments amounted to EUR 69 million in the first quarter, most of which in NPL volumes acquired through forward flow agreements. The bulk of investments came in the Nordic region, improving the geographical balance. Total ERC exceeded EUR 1.7 billion at the end of the quarter, of which NPL portfolio accounted for 86% and REO for 14%.

The funding position was strengthened with the release of an additional EUR 100 million in bank

loans and EUR 50 million increase of a bond loan. Co-investor Geveran increased funding for the

co-investment vehicle Axactor Invest 1 S.à r.l. in April.

Axactor sees attractive investment opportunities in the NPL segment and increased funding leaves

room for increasing the total planned investment level in 2019 from EUR 350-400 million to

EUR 400-450 million. The portfolio investments and solid collection performance point towards continued profitable growth.

“Axactor had a very strong first quarter drawing on the large investments made late last year, in combination with positive market fundamentals. We delivered a record-high EBITDA margin, proving the scale benefits inherent in the Axactor model. Further, our improved funding capacity enables us to maintain a high investment level through 2019,” says CEO Endre Rangnes in Axactor.

For additional information, please contact:

Endre Rangnes, CEO Axactor

Mobile phone: +47 482 21 111

Email: endre.rangnes@axactor.com

or

Johnny Tsolis, CFO Axactor

Mobile phone: +47 913 35 461

Email: johnny.tsolis@axactor.com

About Axactor:

Axactor Group specializes in both Debt Collection and Debt Purchasing across several countries, with operations in Italy, Germany, Norway, Sweden, Finland 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 1,000 billion euros across Europe providing significant opportunities for Axactor's future expansion. Axactor has approximately 1,100 employees.