Axactor SE

Investor Presentation • Jan 12, 2024

2024 - a new cycle emerging?

Arctic Nordic Debt Collection Seminar 2024 Johnny Tsolis CEO Axactor ASA

2023 - Annus horribilis for the industry?

Higher cost of funding

• Increased interest rates and bond margins

Reduced access to capital

• Industry out of favor

Higher cost-to-collect

• Elevated inflation and wages

Reduced portfolio cash flow

• Reduced disposable income and regulatory changes

Reduced investment capacity

• Cost of funding deteriorate investment capacity

Plummeting industry share prices

Is now the time to take a long position?

Industry challenges

Dimension	Industry	Axactor	Comments
Macro			• Macro delays portfolio cash flow
Funding		✓	• No maturities until medio 2026 • Margins only marginally up compared to 2020
Investment capacity		✓	• Sufficient investment capacity enabling controlled growth
Profitability		✓	• Profitable business model – even if all credit facilities were unhedged and refinanced today

Axactor is one of the most profitable companies in the industry

Peers	Equity%1	NPL%1	ROE to shareholders '222		ROE to shareholders YTD Q3 '232
Peer 1	43%	96%		28%		29%
	29%	77%		10%		8%
Peer 2	13%	97%		9%		12%
Peer 3	32%	82%		6%		7%
Peer 4	38%	19%	-5%		-15%
Peer 5	21%	44%	-18%		-26%
Peer 6	14%	80%	-21%		-29%
Peer 7	26%	42%	-22%		-3%

4 1) Numbers for FY2022. NPL% = NPL total income / group total income. 2) Continuing operations

Next for Axactor is to do more of the same and stick to our strategy

1 Accretive investments	• Invest in accretive portfolios with attractive gross IRR driving margin expansion on NPL
	• Target of reaching total backbook Gross IRR above 20%. Currently experiencing Gross IRR of 30+% on newly signed acquisitions
2 Cost leadership	• Cloud based unified IT-infrastructure, optimized processes and a strong cost culture
	• Currently investing extensively in data-driven valuation and -operation to further excel
3 Best at what we do	Targeted focus to become best at what we do1 • Industry: Bank & finance • Debt type: B2C, unsecured • Markets: Existing six countries

The strategy has delivered satisfying return on equity in a turbulent business environment

Return on equity to shareholders

EBITDA uplift of 24% has secured the ROE result and to a large extend offset increasing cost of funding

EBITDA and EBITDA-margin (EUR million and %)

• Accretive growth on NPL
• Strict cost control
• Close-down of unprofitable business areas and clients
• Improved data-driven operations

Summary: Why invest in Axactor?

8 1) Cost is calculated as segment OPEX + allocation of unallocated OPEX and Depreciation & Amortization (excluding amortization of NPL portfolios). Segment OPEX is used as allocation key. Income is calculated as Total income adjusted for revaluations to show income excluding one-time effects based on changes in future expectations. YTD Q3

9 Q&A