Slide 1: Axactor Q1 2017 Presentation
AXACTOR Q1 2017 PRESENTATION May 8, 2017
Slide 2: 1st Quarter 2017 – Axactor AB
1st Quarter 2017 — Axactor AB AXACTOR
Slide 3: Key highlights Q1
Key highlights Q1 REVENUE ERC EBITDA CASH EBITDA CASH BALANCE EUR MILLION EUR MILLION EUR MILLION EUR MILLION EUR MILLION * +615% y/y +36% q/q • Positive EBITDA for the first time with EUR 1.0 million reported for the quarter • Acquired Profact, Sweden, 35 people. Fully licensed to acquire and colle
Slide 4: Events after Q1
Events after Q1 • Last tranche released in May and upsized from EUR 25m to EUR 45m DNB/Nordea facility • Bank ReFi discussions started • Funding lines increased to EUR 55m Italian Bank Facilities • EUR 29m utilized ytd Prior years tax loss • Prior years tax loss carryforwards of SEK 262m/EUR 27m con
Slide 5: Balanced revenue mix
Balanced revenue mix Revenue Development per Country • Axactor represented in 3 of the largest NPL markets in 25 Europe (GER, ITA and SPA) • Established in Sweden with large NPL acquisition in Q1 20 • Well balanced revenue mix geographically • Nordic share of revenue will grow significantly in 2017
Slide 6: Balanced revenue mix
Balanced revenue mix Revenue Development per Product • 6.5% revenue growth in Q1 versus previous quarter Growth comes from NPL collections 20 • 18 • Main growth driver is the large Spanish portfolio 16 acquired in 12/2016, and improved NPL collections in 14 Spain 12 • Payment services being rolled o
Slide 7: Axactor milestones last 4 quarters
Axactor milestones last 4 quarters 2016 2017 Q2 Q3 Q4 Q1 Platform Ikas acq.closed New 3PC contract with New 3PC Acquisitions the largest electrical Altor acquisition Profact (~EUR31m) contract with top company in Spain announced acquisition (and 3PC Geslico 5 private bank acquisition CS Union acquis
Slide 8: 1H 2017 Main Focus Areas
1H 2017 Main Focus Areas NPL acquisitions – Primary Sales from FI Growth in the “Forward Flow deals” segment NPL Portfolios sales increase in size Extend existing products to new markets Roll-out of Payment Services in SWE and GER Successfully onboarded the Bank Norwegian portfolio Integrati
Slide 9: Status Operational Improvements & Systems Implementation
Status Operational Improvements & Systems Implementation Behind plan Amber – Plan initiated System/ Overall Standard status Planned Planned Planned Planned Planned On Track completion completion completion completion completion Country COLLECTION SYSTEM May-17 specific Axactor DIALER Q3/
Slide 10: Key financials Q1-17
Key financials Q1-17 Income statement Key comments • 6.5% revenue growth compared to Q4-16 • EBITDA positive for the first time • Cash EBITDA positive for the last three quarters • Profact included with 1 month trading in Q1 • Interest cost for the quarter is EUR 1.1 million • Unrealized FX signific
Slide 11: Q1 Balance Sheet
Q1 Balance Sheet Assets Equity and liabilities 11
Slide 12: Portfolio Statistics
Portfolio Statistics Collection curves - ERC per year Historical Development ERC 450 427 60 54 54 400 49 50 350 44 317 38 300 40 253 32 250 28 EUR m 30 EUR m 200 24 21 126 19 150 20 17 15 13 12 100 63 10 7 50 0 0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 y1 y2 y3 y4 y5 y6 y7 y8 y9 y10 y11 y12 y13 y14 y15 SPA IT
Slide 13: Portfolio Statistics
Portfolio Statistics Book value Portfolios Capex 250 70 66 192 60 200 50 150 39 128 40 32 33 EUR m 99 27 EUR m 30 100 64 20 50 27 10 0 0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 -10 SPA ITA SWE GER SPA ITA SWE GER • Includes portfolios held by platform companies at the time of acq
Slide 14: Debt and Leverage
Debt and Leverage 100 DNB/Nordea RCF 90 • In May 2017 the last tranche was increased to EUR 45m 80 and made available to the company 70 • Gearing on last two portfolios is 50%. 60 • Going forward we will on case-by-case basis assume 50% gearing. Mill SEK 50 • ReFi discussions started in Q2 40 30 Ita
Slide 15: Summary
Summary • Positive EBITDA and Cash EBITDA • DNB/Nordea facility - last tranche upsized to EUR 45m and released in May • Increased credit lines to EUR 55m in Italy • Refinancing process with banks initiated • Bank Norwegian portfolio fully onboarded - gives significant business volume increase/ERC •
Slide 16: www.axactor.com
www.axactor.com