Axactor Asa · OSL:ACR
Axactor Asa — Investor Presentation (February 2016)
23 slides from Axactor Asa's investor presentation, Feb 16, 2016
Slide 1: Investor presentation
Investor presentation February, 2016
Slide 2: Agenda
Agenda • Introduction • Market overview • Axactor strategy • Financials & Structure • Q415 & YTD16 Highlights • Appendix (financial information) 16.02.2016 2
Slide 3: Investment summary
Investment summary • Large European NPL stock in the banks’ balance sheets Attractive fundamentals • Double digit growth in the Non-Performing Loans (NPL) debt sales market in several within NPL purchase European countries market • Regulatory changes (Basel III, etc.) driving debt divestments in the
Slide 4: Agenda
Agenda • Introduction • Market overview • Axactor strategy • Financials & Structure • Q415 & YTD16 Highlights • Appendix (financial information) 16.02.2016 4
Slide 5: €1 trillion Non-Performing Loan (NPL) FI market in Europe
€ 1trillion Non-Performing Loan (NPL) FI1 market in Europe Primary focus Non-focus B2C Unsecured 10% B2B Corporate Credit card debt, private leasing, residual 30% Corporate loans/ bank term debt mortgages, consumer loans ~EUR 300bn market ~EUR 100bn market 35% Secondary focus Secondary focus B2C Sec
Slide 6: Key trends in the debt purchase/debt collection industry
Key trends in the debt purchase/debt collection industry Portfolio sales – strong growth • Regulatory changes driving debt sales Unsecured B2C NPL transactions (EURbn Face Value) 1 • Strengthened FI balance sheets enable portfolio sales 30 • Asking price approaching street price +140% 20 10 - 2010 2
Slide 7: European NPL market overview
European NPL market overview Total loans and NPL ratio of Eurozone banking market Portfolio transactions in the Eurozone market EURbn EURbn 12 500 10% 120 12 322 12 339 12 196 11 961 100 12 000 8% 11 731 11 737 80 21 39 Face value 11 500 6% 6 60 10 8 11 000 4% 10 22 40 9 5 10 61 4 24 10 500 2% 20 10
Slide 8: Spanish NPL market overview
Spanish NPL market overview Total loans and NPL ratio of Spanish banking market Portfolio transactions in the Spanish market EURbn EURbn 1 750 1 728 16% 25 1 700 14% 20.9 1 656 20 1 1 650 12% 1 600 1 518 1 585 10% 8 Face value 1 535 15 1 550 8% 1 500 1 481 1 461 9.7 9.5 6% 10 1 450 3 2 8 4% 1 400 5
Slide 9: Agenda
Agenda • Introduction • Market overview • Axactor strategy • Financials & Structure • Q415 & YTD16 Highlights • Appendix (financial information) 16.02.2016 9
Slide 10: Axactor will cover all major parts of the value chain
Axactor will cover all major parts of the value chain Outside Axactor scope Axactor focus area Portfolio sales Credit Amicable Surveillance and Invoice Factoring Legal collection information collection recovery • Fresh claims • Legal action taken • Unrecoverable claims move when claims can not be to
Slide 11: Axactor to focus on established markets with strong growth
Axactor to focus on established markets with strong growth The development curve of debt collection/debt purchase markets Early phase Growth phase Mature phase Axactor’s initial focus is Spain, Germany and Italy • Developed markets with strong growth • Strong relationships with financial instituti
Slide 12: Axactor Strategy & Action plan
Axactor Strategy & Action plan Step 1 Step 2 Step 3 • Top 3 market share in debt • Establish debt collection service collection in Spain • Enter new growth markets Strategy platform in Spain through platform and portfolio • Collection of debt on acquired acquisitions in Germany and Italy Non-Perfo
Slide 13: Acquisition of a leading legal collection platform in Spain
Acquisition of a leading legal collection platform in Spain Description ALD Abogados in numbers Leading Spanish legal debt collection agency established in 2010 100 FTEs and 675 external lawyers and solicitors (Dec 2015) 5% 12m recovery Management with long industry experience rate1 Strong c
Slide 14: Agenda
Agenda • Introduction • Market overview • Axactor strategy • Financials & Structure • Q415 & YTD16 Highlights • Appendix (financial information) 16.02.2016 14
Slide 15: Capacity to acquire significant portfolios
Capacity to acquire significant portfolios C Illustrative example of uses of available funds: NOKbn 5.8-20.0 A. NOK 300m in available funds B. Enables acquisition of debt portfolios for NOK 462m-600m @ 35-50% leverage C. Face Value of claims acquired NOK 5.8 – 20.0 billion (Assuming portfolios acq
Slide 16: Axactor company structure
Axactor company structure1 Axactor AB Axactor Platform Axactor Portfolio Axactor AS HoldCo AB Holdco AB Aguamenti Investments S.L. ALD Abogados S.L. 1: Name changes still in process for Axactor AB, Axactor Platform HoldCo AB and Axactor Portfolio HoldCo AB 16.02.2016 New structure per 31.12.2015 the
Slide 17: Agenda
Agenda • Introduction • Market overview • Axactor strategy • Financials & Structure • Q415 & YTD16 Highlights • Appendix (financial information) 16.02.2016 17
Slide 18: Q415 & YTD16 Highlights
Q415 & YTD16 Highlights • Discontinued the mining business (NMG) • Renamed the company to Axactor (AXA) • Raised NOK 460 million in equity • Established a financing commitment from DNB at highly competitive terms • Acquired a leading Legal Collection Platform in Spain (ALD Abogados) • Recruited expe
Slide 19: Agenda
Agenda • Introduction • Market overview • Axactor strategy • Financials & Structure • Q415 & YTD16 Highlights • Appendix (financial information) 16.02.2016 19
Slide 20: Key figures Axactor AB (group)
Key figures Axactor AB (group) For remaining operation after sale of the mining activities SEK thousand Q4 2015 12 months 2015 Q4 2014 12 months 2014 Sales 4 437 4 437 - - Other income - - - 75 Total revenues 4 437 4 437 - 75 EBITDA1 -26 713 -30 592 -2 792 -9 665 Impairment losses and depreciation1
Slide 21: Income Statement
Income Statement Income statement Oct - Dec Oct - Dec Jan - Dec Jan - Dec SEK thousand 2015 2014 2015 2014 Continued operations Net income 4 437 - 4 437 - Other operating income - - - 75 Total operating income 4 437 0 4 437 75 Other external expenses -26 061 -3 090 -29 940 -9 927 Personnel expenses
Slide 22: Balance Sheet
Balance Sheet Assets Equity and liabilities SEK thousand 31.12.2015 31.12.2014 31.12.2015 31.12.2014 ASSETS EQUITY Fixed Assets Equity attributable to equity holders of the parent company Intangible fixed assets Share capital 298 307 45 405 Mineral interests - 111 676 Other paid-in capital 1 468 788
Slide 23: axactor.com
axactor.com