Slides
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Q4 2025 Presentation
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Agenda Highlights Financial update Focus areas Q&A
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3 1 Excluding divested portfolios in Q4’24 and Q4’25 2 Excluding non-recurring cost items Financial highlights for the quarter Continued gross revenue growth of 6%1 • NPL gross revenue growth of 3% y-o-y1 • 3PC delivering another strong quarter, with 16% revenue growth y-o-y Cash EBITDA of EUR 54m, up from EUR 51m last year1,2 • Cash EBITDA margin increasing from 63% to 64%1,2 Annualized return on equity to shareholders of 14%2 • Interest expense on borrowings down 15% y-o-y from less debt and lower interest rates Smaller-sized portfolios in Germany and Spain sold at a premium of more than 20% over book value • Strengthens the balance sheet and contributes to the strategy of renewing the book
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4 Collection performance Collection in line with active forecast Comments Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 Q4 ’25 99% 92% 93% 90% 94% 101% 102% 98% 106% • Collection performance of 106% for the quarter and 102% for the full year • Collection performance of 102% for the quarter and 101% for the full year, excluding sale of portfolios in Germany and Spain
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5 During Q4 2025, Axactor entered into binding agreements to sell smaller-sized portfolios in Germany and Spain Smaller-sized portfolios sold to strengthen the balance sheet and renew the NPL stock Oldest remaining vintages Total proceeds approximately EUR 15 million Premium of more than 20% over book value
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6 3PC total revenue1 1 Excluding 3PC segment in Finland and Sweden closed end of 2023 Continued double-digit growth on 3PC Comments 15 12 13 13 16 15 15 15 19 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 Q4 ’25 +16% • 3PC segment with continued momentum • Double digit growth in Norway, Spain and Germany • Spain growth fueled by successful partnership with major investment fund • Landmark agreement in Norway with first volumes onboarded during the quarter EURm
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7 Healthy organic 3PC revenue growth1 1 Excluding 3PC segment in Finland and Sweden closed end of 2023 Key highlights for the year Collection performance up Diversified maturity profile achieved Migrated to a new cost-efficient IT infrastructure 51 54 65 2023 2024 2025 +19% 65 850 193 468 125 ACR03 ACR04 RCF ACR05 Total debt 3.5 Years to maturity0.7 1.7 2.5 99% 93% 102% 2023 2024 2025 EURm EURm
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8 1 Assuming EURIBOR and STIBOR of 2.0% and NIBOR of 2.9% in 2026. The target is excluding any possible one-time financial cost related to refinancing 2 Leverage = (net interest-bearing debt / pro-forma adjusted cash EBITDA). As defined in the bond covenants 3 Excluding non-recurring cost items Status on financial targets for 2026 Growth Profit Returns Leverage2 NPL investments of EUR 100-200m Minimum 12% ROE1 in 2026 20 - 50% dividend pay-out ratio Maximum leverage of 3.5x in 2026 EUR 59m invested in 2025 Expect to invest EUR 100-200m in 2026 10% ROE in 2025, 12% adjusted for NRIs3 Leverage of 3.6x at year-end 2025 Recommend not to pay dividend based on 2025 results to prioritize deleveraging and cost of funding Target Status
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Agenda Highlights Financial update Focus areas Q&A
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10 Gross revenue Note: Stated numbers are for continuing operations 1 Excluding divested portfolios in Q4’24 and Q4’25 Group: Gross revenue growth in both segments1 Comments 70 67 76 73 144 62 65 63 80 15 12 13 13 16 15 15 15 19 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 Q4 ’25 85 79 89 86 161 77 81 78 99 -39% NPL 3PC EURm • Gross revenue down 39% y-o-y, due to sale of Spanish portfolios last year • Underlying growth of 6% y-o-y1 • NPL gross revenue decreasing by 45% y-o-y • Underlying growth of 3% y-o-y1 • Strong 3PC revenue growth of 16% y-o-y (+6% adj.1)
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11 NPL Total revenue and CM% Note: Stated numbers are for continuing operations NPL segment: Total revenue improved to EUR 49m Comments 50 45 46 42 50 48 46 49 75% Q4 ’23 75% Q1 ’24 78% Q2 ’24 76% Q3 ’24 Q4 ’24 77% Q1 ’25 77% Q2 ’25 79% Q3 ’25 74% Q4 ’25 -59 NPL Total revenue CM % EURm and % • Large improvement from last year due to significant negative revaluation in Q4’24 • Contribution margin negatively impacted by higher legal activation in Italy • Collection performance of 106%, and 102% excluding sale of portfolios in Germany and Spain • Replacement capex of EUR 75m in 2026
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EURm and % 12 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 15 12 13 13 16 15 15 15 19 46% Q4 ’23 32% Q1 ’24 36% Q2 ’24 37% Q3 ’24 44% Q4 ’24 33% Q1 ’25 31% Q2 ’25 36% Q3 ’25 48% Q4 ’25 +16% 3PC Total revenue CM % • 3PC total revenue increasing by 16% y-o-y • All time high total revenue for the quarter • Double digit growth in Norway, Spain and Germany • Spain growth fueled by successful partnership with major investment fund • Highest contribution margin since 2019 despite significant ramp-up costs in Norway
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13 Total revenue Group: Key metrics positively affected by portfolio sales in the quarter EBITDA and EBITDA-margin Cash EBITDA 65 57 59 55 65 64 62 68 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 Q4 ’25 -43 55 49 61 59 47 50 49 67 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 Q4 ’25 130 EURm EURm and % EURm 34 26 30 27 32 33 33 35 53% Q4 ’23 46% Q1 ’24 51% Q2 ’24 48% Q4 ’24 50% Q1 ’25 51% Q2 ’25 53% Q3 ’25 52% Q4 ’25 -74 Q3 ’24
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14 Return on equity to shareholders 1 Excluding non-recurring cost items ROE of 10% in 2025 - 12% adjusted for NRIs1 -6% 1% 2% 6% -6% -9% 9% 7% -19% 10% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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Agenda Highlights Financial update Focus areas Q&A
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16 Key focus going forward is to secure accretive growth NPL 3PC Ensure operational excellence on all clients, despite rapid growth Win additional new large bank and finance clients Build larger NPL investment pipeline Target to place an EUR 100m bond during the year to refinance ACR03 and secure additional investment capacity
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Agenda Highlights Financial update Focus areas Q&A
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Supporting information
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19 ERC development ERC down 4% y-o-y driven by portfolio sales Forward ERC profile by year Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 Q4 ’25 2,620 2,555 2,664 2,602 2,340 2,346 2,320 2,278 2,245 -4% FIN DEU ITA NOR ESP SWE Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 261 287 265 232 194 166 149 133 116 98 86 77 67 59 54 FIN DEU ITA NOR ESP SWE EURm EURm
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20 3PC Total revenue split by geographic region 3PC volumes by geographic region • Double digit growth in Norway, Spain and Germany • Spain growth fueled by successful partnership with major investment fund • Spain accounting for 60% of total revenue 3PC Comments 10% 15% 14% 60% DEU ITA NOR ESP Q4’25 Total revenue EUR 19.0m
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21 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 3.9x Q4 ’23 4.0x Q1 ’24 3.9x Q2 ’24 Q3 ’24 2.7x Q4 ’24 Q2 ’25 2.7x1 Q4 ’25 2.8x 3.8x 3.6x Q1 ’25 Q3 ’25 2.9x2.6x 4.0x Covenant NIBD / Pro-forma Cash EBITDA 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 4.0x Q3 ’25 Q4 ’25 3.0x 3.2x Covenant Interest coverage
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22 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 (2/2) 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 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 74% Q1 ’25 Q2 ’25 Q4 ’23 80% Q4 ’25 73% 73% 74% Q3 ’25 79% 77%1 78% 77% 75%75% Covenant LTV 60% Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 40% Q1 ’25 Q2 ’25 Q3 ’25 Q4 ’25 35% 35% 37% 37% 40% 43%1 43% 42% 40% Covenant Secured LTV
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23 Cautionary note regarding forward-looking statements. The statements contained in this presentation may include forward-looking statements, such as statements of future expectations. These statements are based on the management’s current views and assumptions and involve both known and unknown risks and uncertainties. Although Axactor believes that the expectations implied in any such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Actual results, performance or events may differ materially from those set out or implied in the forward-looking statements. Important factors that may cause such a difference include, but are not limited to: ( i) general economic conditions, (ii) performance of financial markets, including market volatility and liquidity, (iii) debtors' ability and willingness to repay debt, (iv) interest rate levels, (v) currency exchange rates, (vi) changes in the competitive climate, (vii) changes in laws and regulations, (viii) changes in the policies of central banks and/or foreign governments, or supranational entities. Axactor assumes no general obligation to update any forward-looking statement. Disclaimer