Axactor Annual Report 2016

Outlook Going forward the key focus for Axactor will be operational improvements thought system implementations and work process refinement. We will continue to look at smaller acquisitions of platform companies in the countries where we already operate, as well as smaller platforms in the other Nordic countries. NPL portfolio purchases will continue to have priority in all geographies. For 2017 the main priorities for the Axactor Group will be to prepare the company for accelerated revenue growth as well as driving efficiency enhancement in systems and work processes. To make this happen the company will: ·· Continue acquisition of attractive portfolios in all four countries ·· Secure new 3PC clients in all markets including bank carve-outs ·· Enhanced operational focus – standardize our IT platform; implement group core production systems; align KPIs across countries and cross-country learning ·· Increase gearing towards long-term target of 75% and continue the efforts to develop co-investment partnerships We continue to be positive to the NPL sales activities in our main markets. There is a certain degree of seasonality in the sales activity, and for 2017 we expect 2nd and 4th quarter to show the highest level of activity. The consumer credit growth in the Nordic countries continues and we believe that this, combined with the consolidation efforts we see taking place in the Nordics will represent growth opportunities for Axactor going forward. Subsequent events ·· On January 20th, 2017 an extraordinary general meeting (EGM) was held and the EGM elected the following persons as new Board of Directors: Bjørn Erik Næss (Chairman of the Board from 01.03.17); Dag W. R. Strømme (acting Chairman until 01.03.17); Merete Haugli Brita Eilertsen; Beate Skjerven Nygårdshaug; Terje Mjøs; Michael Hylander (deputy board member) ·· Oslo 6 February 2017 the 3rd tranche under the EUR 100 million Recurring Credit Facility which Axactor has with DNB Bank ASA and Nordea Bank AS was made available to the company, thereby increasing the available amount under the facility from EUR 50 million to EUR 75 million. After this event, an additional EUR 25 million is remaining under the facility. ·· Oslo, 28 February, 2017 - Axactor AB announced that it had acquired the Swedish company Profact AB. Profact is offering credit management services and customer services in the Swedish market. The transaction closed on March 1, 2017. ·· On 31 March 2017 Axactor has acquired the largest unsecured NPL portfolio since starting up in the fourth quarter of 2015. The portfolio was originated by Bank Norwegian in Sweden and included unsecured credit with a total Outstanding Balance (OB) of approximately EUR 105 million, across close to 15,200 open accounts of individual loans and credit card debt. ·· On 4 April 2017 Axactor signed 3 new servicing contracts with 2 large Financial Institutions and a Large Fund specializing in Receivables management and Debt Purchase in Spain. The one year renewable contracts have a total revenue value of circa five million euros over the next 12 months. Stockholm, 19 April 2017 The Board of Directors Bjørn Erik Næss Chairman of the Board Dag W. R. Strømme Board member Merete Haugli Board member Endre Rangnes CEO Brita Eilertsen Board member Beate Skjerven Nygårdshau Board member Terje Mjøs Board member Axactor AB | Annual report 2016 21