Axactor ASA: Financial targets and preliminary Q4-financials

Preliminary Q4 2022 financials*

Axactor is delivering on the promised strategy of growth

• NPL investments increasing to EUR 93m for the quarter and EUR 288m for the year - 2.7x replacement capex
• 5% growth on 3PC revenue in the fourth quarter compared to last year

Axactor is delivering on the promised strategy of accretive portfolio investments

• Gross IRR on the total book lifted from 15.7% to 17.3% over the last 7 quarters
• The 2022 vintage secured at an attractive and accretive gross IRR level of 21.3%
  

Axactor is delivering stable collection performance

• Collection performance came in at 99% in the fourth quarter and for the full year

Axactor is delivering on cost control

• We see strong cost control in all markets and expect 2022 to come in at an all-time low cost-to-collect
  

Axactor has improved the interest rate hedge for 2023

• Current hedge: 1-year duration, EUR 573m, 0.5% EURIBOR strike with start date 15 Dec 2022
  

"I am pleased to see increased and accretive investments for the quarter, securing future growth. Furthermore, we deliver another solid and stable quarter on collection performance and have a satisfying interest rate protection in place for 2023" says Johnny Tsolis, CEO of Axactor.

Financial targets

Growth

• 2023: NPL investments of EUR 100-150m
• 2024 and beyond: NPL investments of EUR 200-300m
  

Profit

• 2023: Minimum 9% return on equity
• 2024 and beyond: Reference is made to the attached presentation for underlying long-term potential
  

Returns

• 20-50% dividend pay-out ratio based on FY 2023 results and onwards
  

Leverage

• Maximum leverage of 3.5x at year-end 2023 and onwards (NIBD/pro-forma adjusted cash EBITDA)

Presentation

10:00 am CET: The financial targets and the preliminary results will be presented in a global investor webcast with a live Q&A session. A recording of the webcast will be made available after the live stream is concluded on axactor.com.

Webcast participation will be possible via the following:

Streaming
- https://streams.eventcdn.net/axactor/announcement-of-financial-targets/

Phone
Dial-in pin: 833120

• Norway: +47 81 50 33 08
• Sweden: +46 10 884 80 16
• Denmark: +45 89 87 50 45
• United Kingdom: +44 20 3936 2999
• United States: +1 646 664 1960

For additional information, please contact:

Johnny Tsolis,
CEO, Axactor
Tel: +47 913 35 461
E-mail: johnny.tsolis@axactor.com

Kyrre Svae,
Chief of Strategy & IR, Axactor
Tel: +47 478 39 405
E-mail: kyrre.svae@axactor.com

To learn more about Axactor, visit www.axactor.com

* Please note that the numbers are preliminary and unaudited. Please refer to the Q3 2022 report for terms and abbreviations