Terms and abbreviations

Active forecast

Forecast of estimated remaining collection on NPL portfolios

Cash EBITDA margin

Cash EBITDA as a percentage of gross revenue

Contribution margin (%)

Total operating expenses (excluding SG&A, IT and corporate cost) as a percentage of total income

Collection performance

Collection on own NPL portfolios in relation to active forecast

Equity ratio

Total equity as a percentage of total equity and liabilities

Forward flow agreement

Agreement for future aquisitions of NPLs at agreed prices and delivery

Gross IRR

The credit adjusted interest rate that makes the net present value of ERC equal to NPL book value, calculated using monthly cash flows over a 180-months period

NPL amortization rate

NPL amortization divided by NPL gross revenue

One off portfolio aquisitions

Aquisition of a single portfolio of NPLs

Opex

Total operating expenses

Recovery rate

Portion of the original debt repaid

Replacement capex

Aquisitions of new NPLs to keep the same book value of NPLs from last period

SG&A, IT and corporate cost

Total operating expenses for overhead functions, such as HR, finance and legal etc.

Solution rate

Accumulated paid principal amount for the period divided by accumulated collectable principal amount for the period. Usually expressed on a monthly basis

Yield

Interest revenue from purchased loan portfolios

3PC

Third-Party Collection

AGM

Annual General Meeting

APM

Alternative Performance Measures

ARM

Accounts Receivable Management

B2B

Business to Business

B2C

Business to Consumer

BoD

Board of Directors

BS

Consolidated Statement of Financial Position (Balance Sheet)

CF

Consolidated Statement of Cash Flows

CGU

Cash Generating Unit

CM1

Contribution Margin

D&A

Depreciation and Amortization

Dopex

Direct operating expenses

EBIT

Operating profit/Earnings before Interest and Tax

EBITDA

Earnings before Interest, Tax, Depreciation and Amortization

ECL

Expected Credit Loss

EGM

Extraordinary general meeting

EPS

Earnings Per Share

ERC

Estimated Remaining Collection

ESG

Environmental, social and governance

ESOP

Employee Stock Ownership Plan

FSA

The Financial Supervisory Authority

FTE

Full Time Equivalent

GHG

Greenhouse gas emissions

IFRS

International Financial Reporting Standards

LTV

Loan to value

NCI

Non-Controlling Interests

NPL

Non-Performing Loan

OB

Outstanding Balance, the total amount Axactor can collect on claims under management, including outstanding principal, interest and fees

OCI

Consolidated Statement of Other Comprehensive Income

P&L

Consolidated Statement of Profit or Loss

PCI

Purchased Credit Impaired

PPA

Purchase Price Allocations

REO

Real Estate Owned

ROE

Return on Equity

SDG

Sustainable development goal

SG&A

Selling, General & Administrative

SPV

Special Purpose Vehicle

VIU

Value in Use

VPS

Verdipapirsentralen/Norwegian Central Securities Depository

WACC

Weighted Average Cost of Capita

WAEP

Weighted Average Exercise Price