Axactor Annual Report 2016

Letter from the CEO We are addressing a large non-performing loan (NPL) market in Europe, estimated to around € 1.5 trillion, and with an attractive growth rate going forward. The main growth factors, partly driven by regulatory changes, are sales of non-performing loans and an accelerating trend of outsourcing debt to specialized companies. Furthermore, we see a consolidation trend in the debt collec- tion/debt purchase industry. Axactor’s main focus in the credit management value chain will be: reminder services, amicable and legal collection, surveillance and acquisition of NPLs. As a first step in our Pan-European growth strategy we acquired in December 2015 the company ALD Abogados, a leading debt collection agency in Spain. With a very solid customer base, this company has been the platform for further growth in debt collection and NPL portfolio acquisitions in Spain. During the first two quarters of 2016 we acquired in April IKAS in Norway, in May Geslico in Spain and in June CS Union in Italy. In September 2016 we acquired Altor Group in Germany. Finally, in February 2017 we acquired Profact in Sweden. In addition, there has been a high activity level buying portfolios and entering into new collection deals. Axactor has specific strengths that will allow us to successfully pursue these market opportunities: Firstly, we have managers with a deep understanding of credit management services, and with an unparalleled industry track record. We fully understand the commercial aspects of this business, and, equally, we appreciate the legal framework and the compliance aspects that are critical to our customers. Secondly, as a new entrant, we are not burdened by legacy costs and structures that are no longer beneficial. We have set up a platform specifically designed for a next-generation debt collection service provider focused on rapid growth. Thirdly, we have funding and an investor base that will allow us to grow. We have a solid bank financing, and we are a listed com- pany on the Oslo Stock Exchange with a large shareholder base. We are excited to have embarked on this journey, and I hope you will join us, as a customer, investor, employee or business partner. Endre Rangnes, CEO Axactor is a group of companies within the credit management services industry. We are primarily focusing on large and high growth NPL markets, and have operations in Spain, Italy, Germany, Norway and Sweden. We have an ambitious Pan-European growth strategy and are continuously exploring new opportunities for growth in Europe. Axactor AB | Annual report 2016 5