Slide 1: Investor presentation May 2016
Investor presentation May, 2016
Slide 2: Agenda
Agenda 1 Introduction 2 Market overview 3 Axactor operations and strategy 4 Appendix 2
Slide 3: Introduction
Introduction Market overview Axactor operations and strategy Appendix Introduction 3
Slide 4: This is Axactor
This is Axactor Axactor in brief Pan-European growth strategy • Established in 2015 as an ambitious debt collection and debt Established collection platform purchase company1) Strategic focus to enter • Main focus on collection and acquisition of non-performing loans Opportunistic approach in the No
Slide 5: Axactor milestones to date
Axactor milestones to date 2015 2016 October November December January February March April May Actively considering strong platforms to acquire in the Italian Financing event Financing event Financing event and German markets which are 3PC (third party Ikas acquisition believed to represent opportu
Slide 6: Axactor financial targets
Axactor financial targets Target To date Medium-to-long term target 1 Axactor Portfolio investment sizes Portfolio investment sizes investments of ~EUR 1-15 million of ~EUR 1-25 million Portfolio size (EURm) Portfolio investment sizes Co-investments n.a. of ~EUR 25-100 million 2 Portfolio MoC ~2.5x
Slide 7: Axactor key investment attractions
Axactor key investment attractions • Large European NPL stocks on banks’ balance sheets Attractive fundamentals within 1 • Double-digit growth in NPL sales volume in Europe driven by regulatory changes (Basel III, etc.) NPL purchase market • Strong growth trend in second-hand portfolio sales • Unpar
Slide 8: Market overview
Introduction Market overview Axactor operations and strategy Appendix Market overview 8
Slide 9: > € 1trillion Non-Performing Loan (NPL) FI market in Europe
> € 1trillion Non-Performing Loan (NPL) FI market in Europe B2C Unsecured B2C Unsecured 10% B2B Corporate B2B Credit card debt, private leasing, Corporate Corporate loans / bank term debt residual mortgages, consumer loans 30% ~EUR ~EUR 100bn 300bn B2C Secured 35% B2C Secured B2B SME B2B SME 25% Mor
Slide 10: Key trends in the debt purchase/debt collection industry
Key trends in the debt purchase/debt collection industry 1 • Strong growth in second-hand portfolio transactions Unsecured B2C NPL transactions (face value) EURbn Strong growth of NPL • Regulatory changes driving debt sales 30 20 portfolios coming to market • Strengthened FI balance sheets enable po
Slide 11: 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 8.1 % 9% 160 7.7 % 140.5 7.0 % 8% 140 2.0 6.6 % 15.5 12 000 6.3 % 7% 120 15.0 5.6 % 6% 100 91.0 11 500 1.5 5% 9.0 80 64.0 58.5 12 322 12 339 13.5 12 196
Slide 12: Axactor operations and strategy
Introduction Market overview Axactor operations and strategy Appendix Axactor operations and strategy 12
Slide 13: Axactor entry strategy
Axactor entry strategy Established collection platform 1 Acquire high-quality debt collection company in each priority market Strategic focus to enter Opportunistic approach in the Nordic region and Rest of Europe (e.g. Sweden, Finland, Netherlands, Switzerland, Poland, 2 Grow through NPL portfolio
Slide 14: Axactor will cover all major parts of the value chain
Axactor will cover all major parts of the value chain Outside Axactor scope Focus area Portfolio acquisitions Credit information Invoice Factoring Amicable collection Legal collection Surveillance and recovery • Fresh claims • Legal action taken when • Unrecoverable claims move to claims can not be
Slide 15: Axactor focus on established markets with strong growth
Axactor focus on established markets with strong growth The development curve of debt collection/debt purchase markets Early phase Growth phase Mature phase Axactor – established collection platform • Axactor’s initial focus is Spain, Axactor – strategic focus to enter Germany and Italy – Developed
Slide 16: Axactor value drivers: debt purchase and debt collection
Axactor value drivers: debt purchase and debt collection Debt purchase 3rd party debt collection Portfolio purchase Portfolio cash flow (collection) • Strong value proposition in Europe many customers require cross-border 3rd party collection Portfolio – Axactor has strong execution capabilities a
Slide 17: Leading legal and amicable collection platform in Spain
Leading legal and amicable collection platform in Spain Key highlights Spanish locations • Axactor’s Spanish platform is built up of: Bilbao Valladolid I. The acquisition of ALD Abogados (Madrid) – a leading Spanish legal debt ~15 employees • Amicable call center collection agency established in 201
Slide 18: Position in Spain further strengthen through the Geslico acquisition
Position in Spain further strengthen through the Geslico acquisition Key highlights Key rationale • Incorporated in 1985,Geslico is one of the main players in the • Solid standalone business case – additional potential to be unlocked Spanish debt collection sector as part of Axactor • Geslico offers
Slide 19: Acquisition of Norwegian collection platform
Acquisition of Norwegian collection platform Ikas in brief Ikas revenue and EBIT margin 2011 – 2015 (NOKm) • Established in 1988 EBIT margin (%) Revenue • Purchase price NOK 291m – 70% of the purchase price settled in cash – Part of the cash settlement is financed with NOK 135m from the DNB facility
Slide 20: Strategic rationale for the Ikas acquisition
Strategic rationale for the Ikas acquisition • Significant increase in collection volume Norwegian market growth • Increase in number of non-performing loan portfolios available for sale • Ikas positions Axactor to reap the benefits from exciting Norwegian market opportunities • Significant and incr
Slide 21: Appendix
Introduction Market overview Axactor operations and strategy Appendix Appendix 21
Slide 22: Spanish NPL market overview
Spanish NPL market overview Total loans and NPL ratio of the Spanish banking market Portfolio transactions in the Spanish market EURbn EURbn 1 750 16% 25 13.6 % 20.9 1 700 12.5 % 14% 20 0.5 1 650 10.8 % 12% 16.0 1 600 9.0 % 8.2 10% 15 3.0 1 550 7.3 % 6.8 % 8% 1 728 9.7 9.5 1 500 10 1 656 6.5 6% 2.0
Slide 23: Norwegian NPL market overview
Norwegian NPL market overview Total loans and NPL ratio of the Norwegian banking market Debt collection volume and debt collection cases in Norway NOKbn NOKbn Millions 1.7 % 4 000 1.8% 160 7.1 8 1.5 % 6.7 3 500 1.6% 140 7 1.3 % 1.3 % 5.7 5.9 1.4% 5.5 3 000 120 5.2 6 1.1 % 1.2% 4.4 2 500 100 5 1.0% 2
Slide 24: Italian NPL market overview
Italian NPL market overview Total loans and NPL ratio of the Italian banking market Portfolio transactions in the Italian market EURbn EURbn 15.0 % 19.0 2 300 16.0% 20 14.2 % 18 2.5 2 200 12.6 % 14.0% 16 11.0 % 2 100 12.0% 14 9.2 % 2 000 8.0 % 10.0% 12 7.4 % 11.0 1 900 8.0% 10 7.5 2 213 8 1 800 2 12
Slide 25: German NPL market overview
German NPL market overview Total loans and NPL ratio of the German banking market Portfolio transactions in the German market EURbn EURbn 4 000 3.2% 12 3.1 % 10.2 10.5 9.7 3 500 3.1% 10 0.5 3.0 % 0.5 0.2 3 000 3.0% 8 2.9 % 2.9 % 2 500 6.3 2.9% 2 000 2.8 % 2.8 % 6 0.3 3 638 3 758 0.2 3 382 3 513 2.8%
Slide 26: Axactor company structure
Axactor company structure Legal organization Description of companies Company Description Axactor AB (Sweden) Axactor AB Incorporated in Sweden. Listed on the Oslo Stock Exchange. No employees. Axactor Incentive AB (Sweden) Incorporated in Norway. All staff in Norway is employed in this entity. Will
Slide 27: Income Statement
Income Statement Preliminary proforma Q1 2016 (not reported) Income statement (reported) including IKAS from 1 January 2016 SEK thousand Jan-Mar 2016 Full year 2015 • Gross revenues: SEK 53m Gross revenue 29 404 4 437 Amortization of debt portfolios -1 492 - • EBITDA: SEK -2m Net revenue 27 912 4 43
Slide 28: Balance sheet
Balance sheet Assets Liabilities and equity SEK thousand 31.03.2016 31.12.2015 SEK thousand 31.03.2016 31.12.2015 ASSETS EQUITY Fixed Assets Equity attributable to equity holders of the parent company Intangible fixed assets Share capital 328 107 298 307 Customer relationships 36 006 37 125 Other pa
Slide 29: axactor.com
axactor.com