Axactor (ACR) Investor Presentation summary

Company overview

• Leading European debt collector with operations in six countries and about 1,200 employees.

• Focuses on acquiring and collecting unsecured non-performing loans (NPLs) and third-party collections (3PC).

• Geveran Trading Company Ltd holds a 49.8% stake, providing strong shareholder support.

• Main markets include Finland, Germany, Italy, Norway, Spain, and Sweden.

• Management team has a strong track record in the debt collection industry.

Market environment and trends

• Lower interest rates are expected to improve disposable income and refinancing opportunities.

• High inflation and interest rates have previously reduced disposable income.

• Investment funds are active in NPLs, creating more 3PC opportunities.

• Market supply is lower, leading to higher prices and lower IRRs.

• Regulatory changes include payment-free months and limits on collection fees.

Financial performance and portfolio management

• Recent sale of older Spanish NPL portfolios generated substantial covenant headroom.

• Portfolios sold at a 2% premium, confirming book values in the Spanish market.

• Divestment reduced net interest-bearing debt and increased cash EBITDA.

• Leverage and interest cover ratios improved post-transaction.