Axactor SE — Investor Presentation 2016

Mar 17, 2016

Investor presentation March 17th, 2016

European NPL market overview

The NPL market has counter-cyclical qualities

EUR 0.8-1.0 trillion since 2012

Axactor entry strategy and value chain focus

Axactor entry strategy Axactor value chain and geographical focus

• 1 Acquire a high quality debt collection company in each of the priority markets
• 2 Grow through NPL portfolio acquisitions
• 3 Carve-out of collection platforms from financial institutions
• 4 Further develop the 3PC business through Axactor customer relationships
• 5 Ensure scale benefits and operational excellence in operations
• Focus on the financial segment but opportunistically investigate other segments

6

Axactor milestones

Strong increase in debt collection cases and debt collection volume

Source: Finanstilsynet – Pressemelding nr.3/2015, Virke Inkasso

Strategic rationale for the IKAS acquisition

Norwegian market growth	• •	Significant increase in number of collection cases An increase in number of non-performing loan portfolios available for sale
Strong business case stand alone	• •	Significant and increasing cash generation from day 1 IKAS has operational improvement potential that Axactor can realise with limited investments (e.g. IT systems, collection strategy)
Entering a new geography with the "best platform" available	• •	IKAS considered to be the "best platform" available in the Norwegian market Entering the Norwegian market represents a diversification of Axactor's operations
Increased ability to secure financing	•	Nordic presence increase ability to secure financing with the Nordic banks

IKAS in brief

• Established in 1988 by Kjell Reiersrud, and is today one of Norway's most reputable suppliers of invoice administration and debt collection
• Delivers market leading and modern payment solutions for selected small to medium sized businesses across all sectors through two business segments:
• i. IKAS Collection
• ii. IKAS Payments
• Headquartered in Hokksund 70 employees located throughout Norway in 5 offices
• Total revenues in 2015 of ~NOK 91m and EBIT of ~NOK 26m

Overview Revenue (mNOK) and EBIT margins

Axactor competitive advantages