Slide 1: Q1 2018 Axactor AB
Q1 2018 Axactor AB May 3, 2018 AXACTOR
Slide 2: Key highlights Q1 2018
Key highlights Q1 2018 GROSS REVENUE ERC EBITDA CASH EBITDA CASH BALANCE 41.0 EUR MILLION 1.0 EUR BILLION 6.1 EUR MILLION 18.1 EUR MILLION 195.9 EUR MILLION +108% y/y +134% y/y 17% margin • EUR 92m portfolio investments - including EUR 45m REO assets in Spain • ERC reached EUR 1 billion • 34% growth
Slide 3: Axactor events post Q1 closing
Axactor events post Q1 closing • Signing of largest unsecured NPL forward flow contract ever: • Komplett Bank (Norway) • Expected annual capex of appx. EUR 60m when fully operational • 18 month duration, plus 6 month extension option • Signed term sheet and mandate letter with global bank* • Refinan
Slide 4: Standardization is used to reduce costs and to drive efficiency
Standardization is used to reduce costs and to drive efficiency Standardization - “One Axactor” Positive effects from “One Axactor” • Intility (IT Infrastructure) • Miratech partnership (AD/AM) IT & SG&A share of cost will continue to • ERP/Finance/HR 1 decrease year over year • Portfolio pricing •
Slide 5: Axactor revenue mix – distribution per country
Axactor revenue mix – distribution per country Gross revenue per quarter (EUR million) Q1 revenue distribution per country 45 41.0 40 34.5 SWE 35 GER 8% 13 % 30 * ITA 24.9 23.6 25 7% 18.5 19.7 Q1 NOR 20 8% 15 41.0m 10 SPA 5 65 % 0 -5 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 ITA SWE NOR GER SPA • Continue
Slide 6: Axactor revenue mix – distribution per business segment
Axactor revenue mix – distribution per business segment Gross revenue development per segment (EUR million) 45 41.0 • 108% revenue growth y/y in Q1 2018 primarily driven by 40 34.5 contracts signed in 2017 35 30 • REO established as a major business segment * 24.9 25 23.6 • Capital light business se
Slide 7: Profitability development – EBITDA and Cash EBITDA
Profitability development – EBITDA and Cash EBITDA EBITDA per quarter (EUR million) Cash EBITDA per quarter (EUR million) 7 6.1 20 6 5.6 18.1 5 4.1 * 15 4 13.5 3 2.0 10 2 7.8* 1.0 1 6.2 0 5 3.6 -1 -1.2 0.3 -2 0 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 • 507% EBITDA gro
Slide 8: EBITDA and cash EBITDA - quarter by quarter
EBITDA and cash EBITDA - quarter by quarter EBITDA (EUR million) Cash EBITDA (EUR million) +507% +404% 7 20 6.1 18.1 6 18 16 5 14 4 12 3 10 2 8 1.0 6 1 4 3.6 0 2 -1 0 -1.1 -2 -2 -0.7 Q1-16 Q1-17 Q1-18 Q1-16 Q1-17 Q1-18 • Increased volume improves profit margins through scale and • REO portfolios a s
Slide 9: Gross revenue and ERC - quarter by quarter
Gross revenue and ERC - quarter by quarter Gross revenue (EUR million) ERC (EUR million) +108% +134% 45 1 100 REOs NPLs 41 1 001 40 1 000 900 274 35 800 30 700 25 600 20 500 20 427 15 400 726 300 10 200 5 3 100 61 0 0 Q1-16 Q1-17 Q1-18 Q1-16 Q1-17 Q1-18 • Continued solid revenue growth leveraging on
Slide 10: Collection on portfolios versus business case
Collection on portfolios versus business case LTM Performace vs. Business Case 170% • NPL collection performance stabilizing at 152% ~100% 150% 130% 117% • High REO performance in 2017 based on 110% moderate volume 103% • Conservative build-up in REO BC 90% 100% 101% 96% 92% 91% • Assets still under
Slide 11: Portfolio Statistics NPL
Portfolio Statistics NPL Historical development ERC (EUR million) ERC per year (EUR million) 120 112 800 110 726.2 100 99 700 100 633.0 90 600 80 492.6 506.9 500 70 66 427.1 60 53 400 317.1 50 46 41 300 40 37 33 29 26 200 30 24 22 19 17 20 100 10 0 0 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Y1 Y2 Y3 Y4 Y
Slide 12: Portfolio Statistics NPL
Portfolio Statistics NPL Book value portfolios (EUR million) Capex (EUR million) 400 90 87.0 354.0 350 80 317.1 70 66.5 300 60 250 233.4 237.9 50 46.2 46.8 200 191.9 40 33.8 150 128.0 30 100 20 50 10 6.6 0 0 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 NOR GER ITA SWE SPA
Slide 13: Portfolio Statistics REOs
Portfolio Statistics REOs Historical development ERC (EUR million) ERC per year (EUR million) 300 147 274.3 150 250 225.3 200 100 100 150 100 50 24 50 18.2 18.9 4 0 0 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 SPA SPA • First REO portfolio acquired in Q2-1
Slide 14: Portfolio Statistics REOs
Portfolio Statistics REOs Book value portfolios (EUR million) Capex (EUR million) 200 192.7 150 147.0 154.1 150 100 100 50 44.7 50 8.1 8.4 8.1 0.4 0 0 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 SPA SPA • REO portfolios account for 35% of total portfolio balance • Two new
Slide 15: REO Portfolios KPIs
REO Portfolios KPIs* Actual Business case • Total of 6 portfolios serviced by two different providers: GIA and Altamira 18.4 551 15.7 450 • Lifetime performance ahead of business case • Quicker liquidation • Higher money multiple • Working with international bank to re-finance current stock and fund
Slide 16: Opex profile REOs
Opex profile REOs • REO opex consist of three main elements: • Sales commission paid to servicer • Servicing fee (maintenance, marketing etc.) • Cost of sale – reversal of book value upon sale (no cash impact) • Sales commission generally fixed percentage of sales *Excluding cost of sales • Servicin
Slide 17: Q1 Income statement
Q1 Income statement Income statement Key comments 1Q 1Q LTM 1Q Jan - Dec • Net financial items were negative EUR 5.4m for the EURO thousand 2018 2017 2018 2017 quarter: Income 41 014 19 709 126 039 104 734 Amortization of debt portfolios -5 214 -2 281 -17 881 -14 948 • Interest cost of EUR 4.8 milli
Slide 18: Balance Sheet structure
Balance Sheet structure Assets Equity & Liabilities 842 842 Cash Other • Portfolio book value is EUR Intangibles IBD 79 547m, including REO Other 198 Equity Portfolios • Available cash at end of Q1 is 622 622 EUR 196m 50 78 32 20 76 467 • Equity ratio falls to 35% in 25 wake of the bond issue in Q1
Slide 19: Outlook
Outlook • Solid 3PC pipeline • Nordic consumer unsecured NPL market appears strong • REO market in Spain still highly active • German NPL market shows positive trend • Axactor with significant ramp-up of cash flow and margin expansion in 2018
Slide 20: Summary Q1 Presentation
Summary Q1 Presentation • Continued strong growth in revenue and earnings • Cash EBITDA of EUR 18m • Successfully raised EUR 150m in a bond issue • Acquired portfolios for EUR 92m (o/w EUR 45m in REOs) • ERC past the EUR 1bn mark • Continue to drive efficiency and cost initiatives through One Axacto
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