Slide 1: Axactor Presentation Q4 2024
AXACTOR Presentation Q4 2024
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 Gross revenue of EUR 161m, up from EUR 85m last year • Down 4% adjusted for the portfolio sale in Spain • 3PC total revenue increasing by 10% y-o-y on a like-for-like basis Cash EBITDA of EUR 130m, up from EUR 55m last year • Down 6% adjusted for the portfolio sa
Slide 4: Negative portfolio revaluation in Q4 will improve collection performance
Negative portfolio revaluation in Q4 will improve collection performance Change in book value of NPL portfolios during the quarter Comments EURm -14% 1,259 • Net negative portfolio 1,158 -1011 34 1,087 revaluation of EUR 104m -104 • Revaluation corresponds to 9% of Q3 book value after portfolio sale
Slide 5: Axactor has a solid balance sheet with 89% of the assets invested in NPL portfolios
Axactor has a solid balance sheet with 89% of the assets invested in NPL portfolios, repossessed assets and cash Assets as of Q4 2024 Comments EURm 1,266 80 6% 59 35 5% 1,092 3% • Industry leading tangible equity ratio • 86% of the assets are NPL portfolios and repossessed assets 100% 86% • Only 5%
Slide 6: Portfolio sale generating substantial covenant headroom
Portfolio sale generating substantial covenant headroom - Confirming book values in the Spanish market Portfolio sale comprised of older Spanish vintages Positive effect on covenants 3.8x ≤4.0x 3.7x 46% Covenant 3.0x 2016 2.7x ≥3.0x Covenant 2019 6% 2018 28% 20% 2017 Leverage ratio Interest coverage
Slide 7: EUR 70m of ACR03 bond repurchased
EUR 70m of ACR03 bond repurchased - Deleveraging while reducing interest expenses Bonds repurchased in 2022 and 2024 Comments EURm EUR 19.0m bought in 2022 at average price of 89.4% of par 300 19 51 230 The purchases of bonds at sub-par value resulted in a gross gain1 of EUR 2.0m in 2022 EUR 50.9m b
Slide 8: Current debt structure
Current debt structure Size and maturities on current borrowings as of 31.12.20241 EURm Undrawn RCF Drawn RCF Bonds 73 195 472 545 230 73 EUR 897m 230 472 195 RCF Net outstanding ACR03 ACR04 Total debt Maturity End June 20262 September 2026 September 2027 8 1) Nominal values 2) RCF agreement contain
Slide 9: Expect to refinance 2026 maturities during 2025
Expect to refinance 2026 maturities during 2025 1. RCF extension or renewal during 1H 2025 2. Reiterates investment guiding of EUR 100-200 million 3. Refinance ACR03 during 2025 4. Diversify debt maturity profile 5. Exploration of further portfolio sales in 2025 9
Slide 10: Highlights, Financial update, Outlook, Q&A
Highlights Financial update Outlook Q&A
Slide 11: Group: Gross revenue is up 89% y-o-y, while declining 4% adjusted for the portfolio sale
Group: Gross revenue is up 89% y-o-y, while declining 4% adjusted for the portfolio sale in Spain Gross revenue Comments EURm +89% 161 • Total gross revenue of EUR 82m excluding the 16 portfolio sale in Spain -4% 89 91 89 • NPL gross revenue increasing by 107% y-o-y 83 84 85 86 15 13 79 13 13 while
Slide 12: NPL segment: Total revenue of EUR -59m driven by net negative revaluation
NPL segment: Total revenue of EUR -59m driven by the EUR 104m net negative revaluation NPL Total revenue and CM% Comments EURm and % 48 49 52 52 50 45 46 42 75% 76% 76% 78% 75% 75% 78% 76% • Collection performance of 94% for the quarter • All markets performing below expectations • Net negative reva
Slide 13: 3PC segment: Underlying positive development on both top line and margins
3PC segment: Underlying positive development on both the top line and margins 3PC Total revenue and CM% Comments EURm and % +5% +3% 16 15 15 13 • 3PC total revenue increasing by 5% y-o-y 13 13 13 13 12 • 10% growth on a like-for-like basis1 46% • Norway increasing by 25% y-o-y 44% 41% 36% 37% 31% 33
Slide 14: Group: Total revenue and EBITDA impacted by revaluation while Cash EBITDA impacted by portfolio sale
Group: Total revenue and EBITDA impacted by revaluation while Cash EBITDA impacted by portfolio sale Total revenue EBITDA and EBITDA-margin Cash EBITDA EURm EURm and % EURm 31 33 34 34 130 63 62 65 64 65 30 30 27 59 26 57 55 54% 53% 51% 49%49% 50% 48% 46% 58 60 61 59 51 55 55 49 -43 -74 Q4 Q1 Q2 Q3
Slide 15: ROE of -19% for 2024 – impacted by negative revaluation
ROE of -19% for 2024 – impacted by negative revaluation and challenging collection environment Return on equity to shareholders 9% 7% 6% 1% 2% 6%1 -6% -6% -9% -19% 2016 2017 2018 2019 2020 2021 2022 2023 2024 ROE to shareholders ROE to shareholders excluding revaluations 15 1) Using adjusted net pro
Slide 16: Current status on financial targets for 2026
Current status on financial targets for 2026 Dimension Financial targets 2026 2024 result Growth • NPL investments of EUR 100 – 200 million annually EUR 128m Profit • Minimum 12% ROE1 in 2026 -19% Returns • 20 - 50% dividend pay-out ratio annually n.a. Leverage2 • Maximum leverage of 3.5x in 2026 2.
Slide 17: Highlights, Financial update, Outlook, Q&A
Highlights Financial update Outlook Q&A
Slide 18: Outlook
Outlook 1 Collection • Expect higher collection performance after negative revaluation in Q4 2 OPEX • Aim to absorb inflation and keep OPEX flat • Expect continued reduction in cost of funding from repurchased bonds 3 Cost of funding and lower IBOR-rates. Leverage to be substantially reduced • Expec
Slide 19: Highlights, Financial update, Outlook, Q&A
Highlights Financial update Outlook Q&A
Slide 20: Supporting information
Supporting information
Slide 21: Strict cost control enables a reduction in total operating expenses
Strict cost control enables a reduction in total operating expenses Total operating expenses Comments EURm -5% 125 Total operating expenses for the year down 5% from FY 2023 119 • Despite inflationary pressure, operating expenses have been reduced since 2023 and 2022 2023 2024 OPEX %1 36% 29% 21 Com
Slide 22: NPL investment commitments of EUR 3m next 12 months
NPL investment commitments of EUR 3m next 12 months Quarterly NPL investments EURm 93 70 40 33 34 24 Additional forward 19 flow agreements and 11 13 one-off acquisitions 2 expected to further 1 0 increase NPL Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 investments ’22 ’23 ’23 ’23 ’23 ’24 ’24 ’24 ’24 ’25
Slide 23: ERC down due to portfolio sale and negative revaluation
ERC down due to portfolio sale and negative revaluation ERC development Forward ERC profile by year EURm EURm -11% 2,664 2,602 267 261 2,545 2,523 2,563 2,586 2,620 2,555 258 2,340 239 211 181 161 144 129 113 95 83 74 64 57 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y1
Slide 24: 3PC volumes by geographic region
3PC volumes by geographic region 3PC Total revenue split by geographic region Comments 10% 21% • Spain accounting for 57% of total revenue on Q4’24 3PC Total revenue EUR 16.3m 57% • Segment closed down in Finland and Sweden, with no active clients per year-end 2023 12% DEU ITA NOR ESP 24
Slide 25: Bond covenants (1/2)
Bond covenants (1/2) Leverage ratio - covenant ≤4.0x 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 5.0 3.7 4.6 4.2 3.8 3.5 3.7 3.2 3.
Slide 26: Bond covenants (2/2)
Bond covenants (2/2) Loan-to-value - covenant ≤80% Secured Loan-to-value - covenant ≤60% Net interest-bearing debt divided by total portfolio book value Secured net interest-bearing debt divided by total portfolio book value 80% 60% 75% 74% 73% 73% 73% 73% 73% 73% 38% 39% 40% 37% 37% 37% 35% 35% 35%
Slide 27: Terms and abbreviations
Terms and abbreviations Abbreviations 3PC Third-party collection AGM Annual general meeting APM Alternative performance measures ARM Accounts receivable management B2B Business to business Terms B2C Business to consumer Active forecast Forecast of estimated remaining collection on NPL portfolios BoD
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