01 November 2017, 06:00 CET

Axactor Group

Stock notice

Axactor Q3 2017 - Continues to deliver on strategy, with rapid development and growth

Highlights third Quarter of 2017

- Continued positive operational performance and to grow the


- Signed and closed a co-investment partnership with Geveran

Trading Co. Limited, with a EUR 300 million investment capacity.

- Future growth opportunities fueled by additional funding

facilities from the banks, in addition to the partnership with


- Gross Revenue of EUR 23.6 million (11.1)

- EBITDA of EUR 2.0 million (-0.8)

- Cash EBITDA at EUR 6.2 million (-0.1)

- Net result positive with EUR 0.3 million (-2.1)

Axactor continued to show positive operational performance in the

third quarter of 2017, and to grow the business according to the

communicated strategy through acquisitions of NPL (non-performing

loan) portfolios and signing of new 3PC (third party collection)

contracts. As notified in Q2, summer holiday both for our staff

and debtors, and less number of available portfolios from banks

and financial institutions during this period, led to lower


Axactor achieved an EBITDA of EUR 2.0 million and Cash EBITDA of

EUR 6.2 million in Q3. The corresponding numbers for the same

period in 2016 was EUR -0.8 million and EUR -0.1 million. The

operating margin was 10 % in Q3, compared to -7 % in the same

quarter in 2016. The gross revenue of EUR 23.6 million was in line

with the company's expectations.

The main event of the quarter was the signing of a letter of

intent with Geveran Trading Co. Limited to enter in to a co-

investment partnership (SPV) with a EUR 300 million investment

capacity. The transaction was closed in October 2017. This was an

important strategic milestone for Axactor, bringing the company to

a new level, and puts Axactor in a position to compete for larger

portfolios. In addition, Axactor has an exclusive service

agreement for debt collection on behalf of the SPV, which will

generate additional 3PC revenue for Axactor.

In conjunction with the signing of the partnership with Geveran,

Axactor did a private placement directed at Geveran Trading Co.

Limited and other large existing shareholders of Axactor, bringing

Geveran to own 9.96 per cent of the outstanding shares in Axactor.

Axactor's total investment capacity at the end of Q3 totals more

than EUR 430 million and this could be further increased as we

conclude the re-financing discussion of the current RCF with our

Nordic banks during Q4. The company's total financial position

supports continued rapid development and growth, in line with the

communicated strategy.

Axactor's development over the last two years, and the

opportunities that have emerged as a result of the partnership

with Geveran, means that Axactor in record time has evolved from

being a startup company to being a long-term challenger with a

strong position in our markets. But the ambitions are considerably


"We are pleased with the development and implementation of our

strategy in Axactor's first two years, and are impressed by the

organization's ability to execute initiatives to reach our growth

targets. From the start in December 2015, we have developed the

company to be a top 10 provider in Europe, with ambitions of

significant growth over the coming years. Q3 is usually the

quarter of the year with the lowest activity level in our

industry, primarily because of the summer holiday and consequently

less portfolios available in the market. Despite this, we maintain

rapid development and growth, in line with our high ambitions",

says Rangnes.

On 11 September Axactor acquired two portfolios of NPL Loans

including auto financing and personal loans in Germany, with an

outstanding balance of EUR 25.7m across more than 4,000 cases. In

July Axactor signed a total of 4 new 3PC contracts with financial

institutions in Spain and Germany for a combined estimated annual

revenue of EUR 5 million. The contracts are renewable every 12


The market for sales of NPL portfolios remains strong, with Spain

and the Nordics currently being the most active markets. The

fourth quarter has started on a strong note, with a significant

ramp up of available portfolios. In October Axactor acquired an

Auto Loan Portfolio in Spain from one of the major European car

manufacturers, with a total outstanding balance close to EUR 100

million and more than 10.000 claims.

With a strong capital base which enables larger portfolio

acquisitions, Axactor will pursue both medium- and large sized

portfolios within the secured and unsecured consumer debt space.

As a continuance of the secured portfolio which Axactor acquired

in Spain in Q2, we are now actively seeking portfolio

opportunities within the Real Estate Owned (REOs) segment. Through

Axactor´s excellent relationship with financial institutions the

company has access to a large and highly attractive pipeline,

particularly in Spain. The REOs segments offers significantly

higher IRRs than what we currently can expect in the unsecured

market and provides further diversification to our business model.

International banks have both long experience and great appetite

for financing such transactions due to the portfolios high cash

flow generation and short payback time.

For additional information, please contact:

Endre Rangnes, CEO Axactor

Mobile phone: +47 4822 1111

Email: endre.rangnes@axactor.com


Geir Johansen, CFO & Investor Relations, Axactor

Mobile phone: +47 4771 0451

Email: geir.johansen@axactor.com