Axactor Annual Report 2016

Background and operations Axactor is a fast growing debt collection & debt purchase company, with presence in Spain, Norway, Italy, Germany and Sweden. The company has an experienced management team and a solid investor base consisting of large international funds and private investors. Axactor is investing in new technology and standardized systems, which enables us to deliver best in class debt collection services in all markets. Further, Axactor has the relevant competence and sufficient funding to acquire large non-performing loan portfolios. Axactor will focus on amicable and legal collection, including debt surveillance primarily within the unsecured consumer debt segment. The Parent Company Axactor AB, is incorporated in Sweden and listed on the Oslo Stock Exchange (ticker “AXA”), with Headquarter in Oslo. Spain In Spain Axactor has acquired 2 companies; ALD in 2015 and Geslico during 2016. With offices in 7 cities throughout Spain our Spanish operations employ close to 200 staff. Axactor Spain offers 3rd party collection services to external clients in addition to buying and collecting on NPLs bought from financial institutions in Spain. At the end of 2016 the book value of our own portfolios in Spain was MSEK 660 (MEUR 68.4). Total revenue in Spain for 2016 was MSEK 212.0. Norway Norway was the second country in which Axactor established operations during 2016. The entry in to the Norwegian market came through the acquisition of IKAS, a well-run company with more than 35 years of operating history in the Norwegian market. The company today employes 84 employees and has offices in 6 cities throughout Norway with main office in the city of Drammen outside Oslo. Axactor Norway offers 3rd party collection services and reminder services to SMEs, and did in addition secure its first NPL portfolio, a forward flow deal, in December 2016. Total revenue for Axactor Norway for the 9 months since the initial acquisition was MSEK 74.5. Italy The Italian platform company CS Union was acquired late in 2nd quarter 2016. The company operates out of one office in Cuneo, a city in the Piedmont district north in Italy and has close to 100 employees. In Italy Axactor offers 3rd party collection services to external clients in addition to buying and collecting on NPLs bought from financial institutions in Italy. At the end of 2016 the book value of our own portfolios in Italy was MSEK 318 (MEUR 33.0). Total revenue in Italy for the 6 months we have had operation in the country during 2016 was MSEK 44.0. Germany In Germany Axactor established operations through the acquisition of Altor group at the end of the third quarter. Altor has its office in Heidelberg which is situated some 90km south of Frankfurt. With 200 employees, the company offers 3rd party collection services to external clients in addition to buying and collecting on NPLs bought from financial institutions in Germany. Book value of own portfolios in Germany at the end of last year was MSEK 244 (MEUR 25.3). Total revenue in Germany for the 3 months Axator had operation in Germany during 2016 was MSEK 56.7. Sweden (acquired in February 2017) Axactor made its entry in to the Swedish market in February 2017 when the company acquired Profact AB, and through this transaction we believe Axactor has established a solid foundation for further growth within the debt collection and debt purchase market in Sweden. Profact has approximately 35 full time-employees and has delivered strong growth particularly in the Customer Service area over the last few years. The 2016 revenues were approximately MSEK 18.0. The company was established in 2008 by the CEO Fredrik Kessler who has 24 years' experience in collection industry. Staff, management and environment During 2016 Axactor grew from being a company of 105 employees, to being a true pan-European company, with 794 employees (FTEs) in 4 countries. The growth mainly comes from acquisitions of IKAS, Norway in April, Geslico, Spain in May, CS Union, Italy in June and Altor Group, Germany in September. In addition we had organic growth in our collec- tion centre in Valladolid, Spain. During this growth period it has been worked in a systematic manner, in order to move towards a common corporate culture and values. The company practices a policy of equal treatment pertaining to assignments and promotions, and regards the promotion of a positive working environment as key to the company’s future. No accidents or injuries were recorded in 2016. A new board of directors was elected at an extraordinary gen- eral meeting on January 20th, 2017. The Board of Directors now consists of the following members: Bjørn Erik Næss (Chairman of the Board from 01.03.17); Dag W. R. Strømme (acting Chairman until 01.03.17); Merete Haugli Board member) Brita Eilertsen (Board member); Beate Skjerven Nygårdshaug (Board member); Terje Mjøs (Board member); Michael Hylander (deputy Board member) Axactor AB | Annual report 2016 17