Axactor Annual Report 2016

NPL Portfolio Capex 0 100 200 300 400 GER ITA ESP Q4-16 Q3-16 Q2-16 Q1-16 SEK million 267 378 323 293 As of December 31st, the company was in breach with a loan covenant in the Revolving Credit Facility, and negotiated with the lending banks to get a waiver in place. The waiver was in place in Q1, 2017. Because of the breach, all borrowings under the facility is classified as short term debt at year end 2016. At end of the year, total equity equals MSEK 1 749.9 debt (MSEK 477.0), representing an equity ratio of 65 per cent. Axactor is in a build-up phase where investments in NPL portfolios and production systems take priority and the Board proposes therefore that no dividend be paid for 2016. Parent company The Group’s publicly listed Parent Company, Axactor AB (publ), owns the subsidiaries, provides the Group’s head office functions and provides development work, services and marketing to the entire group. Axactor AB had an Operating Income of MSEK 10.5 (MSEK 0.0) for the full-year and earnings before tax of MSEK 40.6 (MSEK -204.8). Interest income of MSEK 27.2 from group companies and unrealized FX gains of MSEK 47.7 contributed to the positive nest result for the year. At the end of the year the Parent Company had MSEK 405.2 (MSEK 142.9) in cash and cash equivalents. Risk profile andmanagement Axactor’s regular business activities entail exposure to various types of risk. The company manages such risks proactively, and the board of directors regularly analyses its operations and potential risk factors and takes steps to reduce risk exposure. Axactor gives strong emphasis to quality assurance, and has quality systems implemented, or under implementation, in line with the requirements applicable to its business operations. A range of risk factors is discussed in detail in Note 3. Riskmanagement and internal control The Board receives regular reports regarding financial performance from the company. The Board considers that risk management and internal control of the company is adequate considering the size and the nature of the operation. The Board has established an audit committee that will oversee these activities on a regular basis. The Board has met with the external auditor to discuss the internal control environment. Proposed allocation of the company´s result SEK thousand 2016 At the disposal of the AGM is the following Share premium reserve 2,510,970 Retained earnings -1,275,969 Result for the period 40,636 Total non-restricted equity 1,275,634 The Board of Directors recommends the following allocation: Share premium reserve -1,231,282 Retained earnings brought forward 1,231,282 The Board of Directors recommend a re-classification of TSEK 1.231.282, which relates to discontinued operations, to better reflect the continuing structure within equity in the continuing operations. Axactor AB | Annual report 2016 20