Slide 1: Presentation Q1 2025
AXACTOR Presentation Q1 2025
Slide 2: Highlights, Financial update, Outlook, Q&A
Highlights Financial update Outlook Q&A
Slide 3: Financial highlights for the quarter
Financial highlights for the quarter Collection performance of 101% • Affirming updated forecast based on current portfolio performance Healthy gross revenue of EUR 77m in a seasonally slow quarter • Up 7% y-o-y excluding divested portfolios in Spain • 3PC total revenue increasing by 28% y-o-y combi
Slide 4: Beating collection performance expectations
Beating collection performance expectations Collection performance Comments 102% 99% 101% 98% 98% 94% 92% 93% 90% • Collection performance of 101% in Q1’25 • Supported by Q4 ’24 revaluation • Expect collection in line with forecast going forward Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ’23 ’23 ’23 ’23 ’24 ’24 ’24
Slide 5: 3PC delivering high growth and margin expansion
3PC delivering high growth and margin expansion 3PC total revenue and contribution margin Comments EURm and % +28% 15 • 3PC segment experiencing good momentum 12 • All markets growing double digit 32% 33% • Customers more willing to pay for high quality collection services • Growing pipeline with so
Slide 6: Refinancing progressing ahead of plan
Refinancing progressing ahead of plan - Successful extension of RCF and further significant bond buybacks at a discount Successfull refinancing initiatives Debt structure as of Q1 20251 EURm 475 858 • Highly supportive RCF banks RCF extension • RCF maturity extended to June 2028 at same attractive t
Slide 7: Next step is to refinance ACR03 during 2025 – well ahead of maturity
Next step is to refinance ACR03 during 2025 – well ahead of maturity Comments Debt structure as of Q1 20251 EURm • Significant flexibility on refinancing secured as the bond 475 858 still has 16 months left to maturity • The company aim to refinance EUR 183m3 (ACR03) in 2025 as follows 200 • Place a
Slide 8: Interest expenses declining rapidly
Interest expenses declining rapidly - Double positive effect from declining IBOR rates and bond buybacks Interest expense on external borrowings Comments EURm -15% 22 23 22 22 23 22 -7% • Double positive effect on interest expenses 19 18 19 19 18 • Reduced IBOR rates • Bond repurchased at discount,
Slide 9: Highlights, Financial update, Outlook, Q&A
Highlights Financial update Outlook Q&A
Slide 10: Group: Healthy gross revenue of EUR 77m in a seasonally slow quarter
Group: Healthy gross revenue of EUR 77m in a seasonally slow quarter, with 7% adjusted growth Gross revenue Comments EURm -2% (+7% adj.) 161 • Gross revenue is down 2% y-o-y, while 16 increasing 7% excluding divested portfolios in Spain 91 89 86 83 84 85 13 79 13 77 13 13 13 15 12 144 15 • NPL gross
Slide 11: NPL segment: Total revenue increasing 11% y-o-y with improved margins
NPL segment: Total revenue increasing 11% y-o-y with improved margins NPL Total revenue and CM% Comments EURm and % -9% +11% 49 52 52 50 50 45 46 42 • Total revenue increasing 11% y-o-y 76% 76% 78% 75% 75% 78% 76% 77% • Contribution margin up 1pp y-o-y • Collection performance of 101% for the quarte
Slide 12: 3PC segment: Strong development on the top line with improving margins
3PC segment: Strong development on the top line with improving margins 3PC Total revenue and CM% Comments EURm and % +28% -7% 16 15 15 13 • 3PC total revenue increasing by 28% y-o-y 13 13 13 13 12 • Double digit growth in all markets 46% • Particularly good results in Norway and 44% 36% 37% Spain 31
Slide 13: Group: Solid growth y-o-y on total revenue and EBITDA
Group: Solid growth y-o-y on total revenue and EBITDA - Cash EBITDA reflecting Spanish portfolio sale last year Total revenue EBITDA and EBITDA-margin Cash EBITDA EURm EURm and % EURm 130 34 34 62 65 64 65 65 33 32 59 30 30 57 55 26 27 60 61 59 54% 53% 51% 48% 55 55 49% 50% 51 46% 49 47 50% -43 -74
Slide 14: Annualized ROE of 12% in Q1 2025
Annualized ROE of 12% in Q1 2025 - All time high and on par with 2026 financial goal Return on equity to shareholders 12% 9% 7% 6% 1% 2% -6% -6% -9% -19% 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1’251 14 1 Annualized
Slide 15: Highlights, Financial update, Outlook, Q&A
Highlights Financial update Outlook Q&A
Slide 16: Outlook
Outlook Solid • ~100% collection performance collection 3PC growth • Continued growth on 3PC with healthy margins Declining • Declining interest expenses from bond buyback and falling IBOR rates cost • Quarterly OPEX expected to be reduced by EUR ~700k post IT migration1 Strong cash • To be used to
Slide 17: Highlights, Financial update, Outlook, Q&A
Highlights Financial update Outlook Q&A
Slide 18: Supporting information
Supporting information
Slide 19: NPL investment commitments of EUR 7m next 12 months
NPL investment commitments of EUR 7m next 12 months Quarterly NPL investments EURm 70 40 33 34 24 19 Additional forward 13 flow agreements and 11 one-off acquisitions 5 expected to further 3 2 1 1 increase NPL Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 investments ’23 ’23 ’23 ’23 ’24 ’24 ’24 ’24 ’25 ’25
Slide 20: ERC down due to portfolio sale and revaluation
ERC down due to portfolio sale and revaluation ERC development Forward ERC profile by year EURm EURm -8% 2,620 2,555 2,664 2,602 273 266 2,523 2,563 2,586 257 2,340 2,346 241 209 179 160 144 129 111 95 84 75 65 58 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 ’23 ’23
Slide 21: 3PC volumes by geographic region
3PC volumes by geographic region 3PC Total revenue split by geographic region Comments 12% Q1’25 20% Total revenue 52% • Spain accounting for 52% of total revenue on EUR 15.2m 3PC 17% DEU ITA NOR ESP 21
Slide 22: Bond covenants (1/2)
Bond covenants (1/2) Leverage ratio - covenant ≤4.0x1 Interest coverage ratio - covenant ≥3.0x Net interest-bearing debt divided by LTM Pro-forma adjusted cash EBITDA Pro-forma adjusted cash EBITDA divided by net interest expenses 4.0 3.0 3.9 4.0 3.9 3.8 3.8 3.8 3.8 4.6 4.2 3.8 3.7 3.8 3.5 3.2 3.1 3
Slide 23: Bond covenants (2/2)
Bond covenants (2/2) Loan-to-value - covenant ≤80%1 Secured Loan-to-value - covenant ≤60%1 Net interest-bearing debt divided by total portfolio book value Secured net interest-bearing debt divided by total portfolio book value 79% 80% 60% 75% 74% 73% 74% 73% 73% 73% 73% 38% 39% 40% 40% 35% 37% 37% 3
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