Slides
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Q3 2025 Presentation
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Agenda Highlights Financial update Outlook Q&A
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3 1 Excluding divested portfolios in Spain and a positive one-off effect from court cash bookings in Spain in Q3’24 2 Excluding non-recurring items (NRI) related to legal proceedings, IT infrastructure migration and refinancing activities 3 IBOR = Interbank Offered Rate Financial highlights for the quarter Double-digit revenue growth with solid contribution from both segments • Gross revenue growth of 11% y-o-y1 • Total revenue growth of 12% y-o-y in combination with a contribution margin expansion of 2%-points Solid EBITDA of EUR 33m, up from EUR 27m last year • 23% EBITDA growth driven by revenue growth and strict cost control Annualized return on equity to shareholders of 11% • Net financial expenses down 23% y-o-y, lower IBOR3 elevates financial performance Secured the option to utilize the RCF to refinance the residual outstanding balance of ACR03 • Ensures flexibility with regards to refinancing of the only maturity in 2026
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4 Collection performance Collection as expected in line with active forecast YTD Comments Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 98% 99% 92% 93% 90% 94% 101% 102% 98% • Collection performance of 98% for the quarter and 100% YTD • Supported by Q4’24 revaluation • Expect collection in line with forecast going forward
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5 3PC total revenue1 1 Excluding 3PC segment in Finland and Sweden closed end of 2023 Continued double-digit growth on 3PC Comments 12 15 12 13 13 16 15 15 15 Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 +6% +19% • 3PC segment with continued momentum • Growth in all markets • Norway and Spain primary growth drivers • Spain growth fueled by successful partnership with major investment fund • On track to onboard previously announced landmark agreement in Norway • Solid pipeline providing foundation for continued growth EURm
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6 Successful refinancing initiatives 1 Nominal values Well positioned with no major maturities next two years Debt structure as of Q3 20251 3.7 • In Q2 the company successfully extended the RCF at compelling terms and issued a new 4- year EUR 125m bond (ACR05) • In this quarter the company secured the option to utilize the RCF to refinance the residual outstanding balance of ACR03 of EUR 65m • Axactor now has full flexibility with regards to refinancing the 2026 maturity of EUR 65m Years to maturity0.9 1.9 65 884 196 498 125 ACR03 ACR04 RCF ACR05 Total debt EURm 2.7
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Agenda Highlights Financial update Outlook Q&A
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8 Gross revenue Note: Stated numbers are for continuing operations 1 Excluding divested portfolios in Spain and a positive one-off effect from court cash bookings in Spain in Q3’24 Group: Gross revenue back to growth1 Comments 72 70 67 76 73 144 62 65 63 13 15 12 13 13 16 15 15 15 Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 84 85 79 89 86 161 77 81 78 -9% NPL 3PC EURm • Gross revenue down 9% y-o-y, driven by sale of Spanish portfolios last year • Underlying growth of 11% y-o-y1 • NPL gross revenue decreasing by 14% y-o-y • Underlying growth of 9% y-o-y1 driven by improved collection performance • Strong 3PC revenue growth of 19% y-o-y (+11% adj.1)
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9 NPL Total revenue and CM% Note: Stated numbers are for continuing operations NPL segment: Total revenue increasing 10% y-o-y with improved margin Comments 52 50 45 46 42 50 48 46 78% Q3 ’23 75% Q4 ’23 75% Q1 ’24 78% Q2 ’24 76% Q3 ’24 Q4 ’24 77% Q1 ’25 77% Q2 ’25 -59 Q3 ’25 79% +10% NPL Total revenue CM % EURm and % • Total revenue increasing 10% y-o-y • Reduced effective NPL amortization rate following Q4’24 revaluations • Improved contribution margin of 3pp • Collection performance fluctuating around 100% and ended up at 98% for the quarter • YTD collection performance of 100%
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EURm and % 10 3PC Total revenue and CM%1 1 Including 3PC segments in Finland and Sweden closed end of 2023 3PC segment: Continued double-digit growth Comments 13 15 12 13 13 16 15 15 15 33% Q3 ’23 46% Q4 ’23 32% Q1 ’24 36% Q2 ’24 37% Q3 ’24 44% Q4 ’24 33% Q1 ’25 31% Q2 ’25 Q3 ’25 36% +19% 3PC Total revenue CM % • 3PC total revenue increasing by 19% y-o-y • All markets delivering healthy revenue growth • Particularly good results in Norway and Spain • Spain growth fueled by successful partnership with major investment fund • Stable margin despite start-up phase for major contracts • On-boarding of landmark contract in Norway on track and started first deliveries in Q4’25
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11 Total revenue 1 Q2’25 EBITDA margin of 54% excluding NRIs Group: Double-digit revenue growth and EBITDA-margin expansion. Cash EBITDA reflecting Spanish portfolio sale EBITDA and EBITDA-margin1 Cash EBITDA 64 65 57 59 55 65 64 62 Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 -43 +12% 34 34 26 30 27 32 33 33 54% Q3 ’23 53% Q4 ’23 46% Q1 ’24 51% Q2 ’24 48% Q3 ’24 Q4 ’24 50% Q1 ’25 51% Q2 ’25 53% Q3 ’25 -74 +23% 55 55 49 61 59 47 50 49 Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 130 -16%EURm EURm and % EURm
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12 Return on equity to shareholders1 1 Annualized Double-digit annualized ROE YTD - Increasing to 11% excluding NRIs -6% 1% 2% 6% -6% -9% 9% 7% -19% 10% 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD Q3’25
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Agenda Highlights Financial update Outlook Q&A
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• Well positioned with no major maturities next two years 14 Outlook • ~100% collection performance • Shifting strategic focus from refinancing to accretive NPL investments • Expect NPL investments of EUR 50m to 100m in 2025 • In advanced discussions with regards to a smaller sized backbook sale Solid collection NPL Investments Portfolio sale Refinancing • Several large new 3PC agreements secured which is expected to ensure continued double-digit growth for the next 12 monthsGrowth
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Agenda Highlights Financial update Outlook Q&A
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Supporting information
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17 ERC development ERC down 12% y-o-y due to portfolio sale and revaluation Forward ERC profile by year Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 2,586 2,620 2,555 2,664 2,602 2,340 2,346 2,320 Q3 ’25 2,278 -12% FIN DEU ITA NOR ESP SWE Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 266 278 264 238 200 169 152 136 121 100 88 79 69 61 55 FIN DEU ITA NOR ESP SWE EURm EURm
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18 3PC Total revenue split by geographic region 3PC volumes by geographic region • Spain accounting for 51% of total revenue 3PC • Norway with increasing share of total revenue Comments 12% 21% 16% 51% DEU ITA NOR ESP Q3’25 Total revenue EUR 15.2m
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19 Leverage ratio - covenant ≤4.0x 1 EUR 31m of ACR03 was repurchased at end of Q1 with cash settlement the following quarter which temporarily reclassified EUR 31m of NIBD into NWC. Adjusted for the delayed settlement, leverage was 2.7x for Q1 Bond covenants (1/2) Interest coverage ratio - covenant ≥3.0x Net interest-bearing debt divided by LTM Pro-forma adjusted cash EBITDA Pro-forma adjusted cash EBITDA divided by net interest expenses 3.8x Q3 ’23 3.9x Q4 ’23 4.0x Q1 ’24 Q2 ’24 3.8x Q3 ’24 Q1 ’25 2.7x1 Q3 ’25 2.6x 3.9x 2.9x Q4 ’24 Q2 ’25 2.8x2.7x 4.0x Covenant NIBD / Pro-forma Cash EBITDA 3.8x Q3 ’23 3.5x Q4 ’23 3.2x Q1 ’24 3.1x Q2 ’24 3.0x Q3 ’24 3.7x Q4 ’24 3.8x Q1 ’25 3.9x Q2 ’25 Q3 ’25 3.0x 4.0x Covenant Interest coverage
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20 Loan-to-value - covenant ≤80% 1 EUR 31m of ACR03 was repurchased at end of Q1 with cash settlement the following quarter which temporarily reclassified EUR 31m of NIBD into NWC. Adjusted for the delayed settlement, LTV was 77% and secured LTV was 43% in Q1 Bond covenants (1/2) Secured Loan-to-value - covenant ≤60% Net interest-bearing debt divided by total portfolio book value Secured net interest-bearing debt divided by total portfolio book value Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 73% 75% 78% Q3 ’25 74% 74% 77% 73% 77%1 79% 73% 80% Covenant LTV 60% Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 40% Q1 ’25 Q2 ’25 35% 35% 35% 37% 37% 40% 43%1 43% Q3 ’25 42% Covenant Secured LTV