Slide 1: Q3 2017 Axactor AB
Q3 2017 Axactor AB November 1, 2017
Slide 2: Key highlights Q3
Key highlights Q3 REVENUE ERC EBITDA CASH EBITDA CASH BALANCE 23.6 EUR MILLION 526 EUR MILLION 2.0 EUR MILLION 6.2 EUR MILLION 54.7 EUR MILLION +113% y/y +108% y/y 10% margin • Axactor and Geveran signs Co-investment Partnership LOI with EUR 300 million in investment capacity • A private placement o
Slide 3: Events after Q3 closing
Events after Q3 closing • The co-invest tansaction with Geveran closed - securing the investment capacity of EUR Geveran co-invest 300 million transaction closed • The co-investment vehicle Bank Funding in place • Acquired an Auto Loan Portfolio in Spain from one of the major European car New NPL ac
Slide 4: Portfolio investment company
Portfolio investment company Capital structure with EUR 300 mill capitalization Rationale for Axactor Geveran Axactor • Enables bid for significantly larger portfolios, including new NPL Equity EUR 30 million EUR 30 million 20% segments (10%) (10%) • Optimizes cost of capital for larger purchases du
Slide 5: Balanced revenue mix
Balanced revenue mix Revenue per Quarter (EUR million) Q3 Revenue Distribution per Country 24.9 * 25 23.6 19.7 SWE 20 18.5 GER 16% 23% 15 Q3 11.0 ITA 23.6m 8% 10 NOR SPA 10% 5 44% 0 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 GER ITA NOR SPA SWE • No significant change in geographic mix • Swedish revenue mainly d
Slide 6: Balanced revenue mix
Balanced revenue mix Revenue Development per Product (EUR million) 24.9* 25 23.6 • Q3 with seasonality impact 19.7 20 18.5 • Four new significant 3PC contracts signed during Q3 • Good balance between NPL and 3PC 15 • Payment services/Accounts Receivable Management 11.1 System currently being rolled
Slide 7: Collection on NPL portfolios vs. Initial business case
Collection on NPL portfolios vs. Initial business case (EUR million) Performance vs. business case 120% • 2016 performance impacted by external 20,0 servicing and replacement of old collection 100% 99% 97% systems in all countries 100% 92% 91% • Q4-16 collection includes a large settlement of 80% 15
Slide 8: Portfolio Statistics
Portfolio Statistics Historical Development ERC (EUR million) ERC per year (EUR million) 78.9 550 525.8 80 76.4 510.7 500 70 450 427.1 61.4 400 60 350 49.6 317.1 50 300 41.7 253.2 40 35.9 250 31.1 200 30 27.4 24.3 21.4 150 19.0 17.0 20 15.3 13.9 100 12.5 10 50 0 0 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Y1 Y2
Slide 9: Portfolio Statistics
Portfolio Statistics Book value Portfolios (EUR million) Capex (EUR million) 241.5 246.3 250 70 66.5 60 54.3 200 191.9 50 150 40 33.8 128.0 30 98.7 100 20 13.6 10 7.0 50 0 0 -10 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 GER ITA NOR SPA SWE GER ITA NOR SPA SWE • Two portfolios acqui
Slide 10: Q3 Income statement
Q3 Income statement Income statement Key comments 3Q 3Q EURO 1000' 2017 2016 Income 23 617 11 072 • 113% Y/Y Revenue growth Amortization of debt portfolios -3 544 -378 Net revenue 20 073 10 694 • Double digit EBITDA margin at 10% Cost of secured assets sold -124 0 Personnel expenses collection -6 65
Slide 11: Q3 Balance Sheet
Q3 Balance Sheet Assets Key comments EURO 1000' 30.09.2017 30.09.2016 31.12.2016 • Book value of NPLs is 246m, including Stock of Secured Intangible non-current assets Assets (Spain) Intangible assets 18 386 17 078 18 347 • Available cash at end of Q3 is 54.7 million Goodwill 54 756 51 094 53 491 De
Slide 12: Q3 Balance Sheet
Q3 Balance Sheet Equity and liabilities Key comments EURO 1000' 30.09.2017 30.09.2016 31.12.2016 Equity for equity holders of the parent • Total interest bearing debt of EUR 116.1 million whereof EUR Share capital 79 377 49 133 64 198 29.9 million in Italy Other paid-in capital 195 773 195 611 262 4
Slide 13: End Q3 investment capacity of EUR 430m
End Q3 investment capacity of EUR 430m 430 Figures in EUR million 300 160 24 30 130 86 50 Cash available RCF Italian loan facility Axactor stand alone Investment in SPV Axactor stand alone Portfolio investment Total investment for CAPEX (pre equity issue) (post equity issue) company capacity Additio
Slide 14: Entering new market segment in Spain - and market trends in Europe
Entering new market segment in Spain - and market trends in Europe 14
Slide 15: The Real Estate Owned (REO) market in Spain is an attractive segment for Axactor
The Real Estate Owned (REO) market in Spain is an attractive segment for Axactor Attractive stand-alone returns (IRR normally 30-60% higher than for B2C unsecured) Regulatory changes driving Improved macro large transaction volumes environment in Spain (More than 70 transactions last 3 (Real estate
Slide 16: “Clean up” of the bank´s balance sheets has just started…
“Clean up” of the bank´s balance sheets has just started… 1 289 • A modest 16% reduction of NPLs on the bank´s -16% balance sheets 1 084 • Deleveraging to continue due to regulatory pressure • Large volumes of NPLs and REOs currently offered in the market 2013 2016 16 Source: PwC Portfolio Advisory
Slide 17: NPL ratio as % of total gross loans is decreasing
NPL ratio as % of total gross loans is decreasing NPL ratio as % of total gross loans 18% 17% 17% 16% 15% 14% 12% 6% 8% 10% 7% 8% 8% 6% 6% 6% 4% 3% 3% 4% 1% 1% 1% 1% 1% 2% 1% 0% 2014 2015 2016 Germany Italy Sweden Spain Eurozone Norway 17 Source: ECB Statistical Data Warehouse, Statistics Norway
Slide 18: Eurozone banking overview
Eurozone banking overview Total loans (bEUR) Business/corporate loans (bEUR) 18 477 18 500 4 800 4 720 18 118 4 700 17 987 18 000 4 600 4 536 17 572 17 500 4 500 17 163 4 400 16 982 4 345 17 000 4 309 4 304 4 315 16 832 4 300 4 282 0 0 2011 2012 2013 2014 2015 2016 1H 2017 2011 2012 2014 2015 2016 1
Slide 19: Summary Q3 Presentation
Summary Q3 Presentation • Q3 gross collection/EBITDA with seasonality impact – significantly better gross collection/EBITDA expected in Q4 • Double digit EBITDA margin • Equity issue with gross proceeds of appx EUR 64 million • Co-invest agreement with Geveran closed in October creating a vehicle wi
Slide 20: axactor.com
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