AXACTOR PRESENTATION. DNB SME Conference Oslo, April 2017

Transcription

1 AXACTOR PRESENTATION DNB SME Conference Oslo, April 2017

2 Recent Events Acquired Profact, Sweden, 35 people. Fully licensed to acquire and collect on NPLs in Sweden 2 forward flow deals closed with Nordic Financial Institution start up in April and June Acquired smaller sized portfolios in Italy and Norway from Financial Institutions Acquired large NPL portfolio from Bank Norwegian in Sweden Committed Capex YTD 2017 equal to FY 2016 Capex 3 x Primary insider share purchases in Q1 2

3 This is Axactor Axactor in brief Pan-European growth strategy Established in Q as an ambitious and fast-growing debt collection and debt purchase company 1) Established collection platform Main focus on collection and acquisition of non-performing loans ( NPL ) from financial institutions Led by a management team with strong track record from the purchased debt and debt collection industry En route to execute on clearly defined entry strategy and build an efficient and high-quality company without any legacy burdens Main focus on scaling existing platforms. Opportunistic view on new countries Platform Portfolios HQ Platform Portfolios Headquartered in Oslo, Norway ~875 employees in Norway, Spain, Italy, Germany and Sweden 2) Platform 1 2 Portfolios Debt collection Axactor value creation pillars Purchased debt Platform Portfolios Platform Portfolios Notes: 1) the legacy mineral activities related to Nickel Mountain Group AB were fully divested from January ) Full-time and part-time 3

4 Key trends in the debt purchase/debt collection industry 1 Strong growth of NPL portfolios coming to market Strong growth in second-hand portfolio transactions Regulatory changes driving debt sales Strengthened FI balance sheets enable portfolio sales Approaching price equilibrium between sellers and buyers Unsecured B2C NPL transactions (face value) EURbn A 2013A 2014A 2015A 2016A 2 Outsourcing trend (carve-outs of collection units) Several major carve-outs from European banks FI regards debt collection as non-core operations Debt collection agencies achieve higher solution rates 3 Market maturity and professionalization Industrial acquisitions PE acquisitions / IPOs Industry consolidation Technology enables increased scale advantages Capital constraints access to capital key success criteria Influx of private equity players / IPO activity IPO 4

5 > 1.5 trillion Non-Performing Loan (NPL) FI market in Europe B2C Unsecured Credit card debt, private leasing, residual mortgages, consumer loans B2C Unsecured 10% B2B Corporate 30% B2B Corporate Corporate loans / bank term debt ~EUR 150bn ~EUR 450bn B2C Secured 35% B2C Secured Mortgages, secured loans with collateral Axactor primary focus B2B SME 25% B2B SME Small business loans ~EUR 525bn Axactor secondary focus ~EUR 375bn Axactor non focus Source: ECB, Oxford Economics Note: (based on 2014 estimates) 5

6 Market Update Axactor Countries Comments: Few large, structured processes in 1H Strong competition on NPL portfolios Monthly forward flow contracts on ecommerce player available Market consolidation Comments: No major transactions concluded in Q1 High number of structured processes expected in Q2 Increase activity on 3PC market and within legal collection /solicitor services Comments: Several large NPL sales expected in Q2 High level of small to medium sized transactions, but at low IRR Market consolidation Comments: High activity level in Q1, Axactor managed to capture parts of it. Expected to continue in Q2 Forward flow contracts more commonly used Large, untapped market for Payment product in Sweden Comments: Several large structured NPL processes expected in Q2 Forward flow trend even more visible 3PC market still shows healthy growth

7 SEK mill CAPEX capacity- Pre Bank Norwegian Acquisition 1400 Current CAPEX capacity approx. SEK 1100m At the end of 2016 Axactor had SEK 618m in cash and SEK 75m in unused RCF with DNB/Nordea In January 2017 SEK 240m was made available through release of 3 rd tranche in RCF We plan for 4 th tranche to be release within 1H-17. In Italy our funding facility is steadily increasing We plan for working capital levels of SEK 150m 0 Cash Unused RCF RCF 3rd tranche RCF 4th tranche Italy 7

8 1H 2017 Main Focus Areas NPL portfolio acquisitions Primary Sales from Financial Institutions Leveraging existing products in new markets Nordic expansion - Integration of Profact in Sweden Operational improvements & system implementation to increase efficiency Establish the Co-invest structure to increase CAPEX capacity 8

9 Co-Invest Structure EUR 200m Investment Capacity (illustrative) SPV to acquire 3-7 portfolios in the Axactor countries CO-INVESTOR 80% EUR 80m BANK(S) 50% gearing EUR 100m AXACTOR 20% EUR 20m Axactor gets servicing agreement for entire set of portfolios with associated solid EBITDA Increases Axactor s CAPEX capacity and reducing the risk Adding significant collection volumes to Axactor collection centers Enables Axactor to bid for significantly larger portfolios 9

10 Status Operational Improvements & Systems Implementation Behind plan Amber Plan initiated On Track System/ Overall status Planned completion Planned completion Planned completion Planned completion Planned completion COLLECTION SYSTEM Country specific May-17 DIALER Axactor April-17 Sept-17 April-17 Q3-17 T.B.D. IT INFRASTRUCTURE Axactor Phase I done Phase II Q3-17 March-17 Q4-17 Q3-17 ERP SYSTEM/ INC. HR Axactor Q1-17 (I) Q3-17 (II) Q1-17 Phase I - April Q3-17 (II) Phase I - Q3-17 Q3-17 DEBTOR PORTAL BUSINESS INTELLIGENCE/ DATA WAREHOUSE Axactor Axactor H2-17 H2-17 H2-17 H2-17 Q2-17 H2-17 Q2-17 Q3-17 Q

11