Half Year 2026 Axactor ASA Earnings Call

August 13, 2026

Operator: Hello, everyone. Thank you for joining us and welcome to the Axactor ASA presentation of Q2 2026 results. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. If you have logged in via the webcast, please use the Q&A button to submit your questions. I will now hand the conference over to Johnny Tsolis, CEO at Axactor. Please go ahead.

Operator: Hello, everyone. Thank you for joining us and welcome to the Axactor ASA Presentation of Q2 2026 Results. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. If you have logged in via the webcast, please use the Q&A button to submit your questions. I will now hand the conference over to Johnny Tsolis, CEO at Axactor. Please go ahead.

Speaker #1: If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. If you have logged in via the webcast, please use the Q&A button to submit your questions.

Speaker #1: I will now hand the conference over to Joni Solis, CEO at Axactor. Please go ahead.

Speaker #2: Good morning, and welcome to Axactor's Q2 presentation. With me today, I have our CFO, Nina Mortensen. This presentation will be divided into four parts.

Johnny Tsolis: Good morning and welcome to Axactor's Q2 presentation. With me today, I have our CFO, Nina Mortensen. This presentation will be divided into four parts. First, I will take you through the main highlights, then Nina will present the financials before I will go through key focus areas going forward. We will round off with a Q&A session. This time I will focus on the two most important events in the quarter.

Speaker #2: First, I will take you through the main highlights. Then Nina will present the financials, before I go through key focus areas going forward.

Speaker #2: We will round off with your Q&A session. This time, I will focus on the two most important events in the quarter: firstly, the equity transaction and its main element, and secondly, the result of the book value assessment that was previously announced.

Johnny Tsolis: Firstly, the equity transaction and its main elements and secondly, the result of the book value assessment that was previously announced. Please move to slide three. As the main elements in the transaction are well-known, I will not spend too much time repeating these, but rather focus on the results and where we stand.

Speaker #2: Please move to slide three. As the main elements in the transaction are well known, I will not spend too much time repeating these, but rather focus on the results and where we stand.

Speaker #2: We raised a total of $215 million in new equity, divided into $200 million in the private placement and $15 million in a successful subsequent offering.

Johnny Tsolis: We raised a total of EUR 215 million in new equity, divided on EUR 200 million in the private placement and EUR 15 million in a successful subsequent offering. I am happy to say that everyone that subscribed in the subsequent offering got full allocation, including any request for over-subscription. Hence, it is clear that the maximum subsequent offering of EUR 20 million was more than enough to cover all demand from existing shareholders.

Speaker #2: I'm happy to say that everyone who subscribed in the subsequent offering received a full allocation, including any requests for oversubscription. Hence, it is clear that the maximum subsequent offering of $20 million was more than enough to cover all demand from existing shareholders.

Speaker #2: The co-investment structure with Fortress is now up and running, with the legal structure established and the first investments through the vehicle already closed in July.

Johnny Tsolis: The co-investment structure with Fortress is now up and running with the legal structure established and the first investments through the vehicle already closed in July. The sale of the seed portfolio is conducted to a newly established SPV, where Axactor owns 51%, and we have received the first EUR 50 million in proceeds. The remaining will be settled in Q3. Just before summer, we placed a new EUR 100 million bond with 4.25 years tenure at Euribor plus 390 bps margin.

Speaker #2: The sale of the seed portfolio is conducted to a newly established SPV, where Axactor owns 51%, and we have received the first $50 million in proceeds.

Speaker #2: The remaining will be settled in Q3. Just before summer, we placed a new $100 million bond with a 4.25-year tenure at EURIBOR plus 390 basis points margin.

Speaker #2: This was a record low for Axactor, confirming the strong market confidence in the company's transformation. During June, the bond ACRO3 was repaid in full, while parts of ACRO4 were also repaid in connection with the latest bond placement.

Johnny Tsolis: This was record low for Axactor, confirming the strong market confidence in the company's transformation. During June, bond ACR03 was repaid in full, while also parts of ACR04 was repaid in connection with the latest bond placement. To summarize, we are fully on track on the transaction, and we are now ready to focus on investment growth in combination with replacing the current bond structure with new bonds at better terms.

Speaker #2: To summarize, we are fully on track with the transaction, and we are now ready to focus on investment growth, in combination with replacing the current bond structure with new bonds on better terms.

Speaker #2: Let's have a look at our debt structure on the next page. As a result of the transaction, the net debt has been significantly reduced.

Johnny Tsolis: Let's have a look at our debt structure on the next page. As a result of the transaction, the net debt has been significantly reduced. This was, in addition to increased investment capacity, the main motivation for the transaction in the first place. Our net debt is now at EUR 559 million, down from EUR 837 million by the end of Q1.

Speaker #2: This was in addition to increased investment capacity, the main motivation for the transaction in the first place. Our net debt is now at $559 million, down from $837 million at the end of Q1.

Speaker #2: The proceeds from the equity issue and the seed portfolio sale have been used to call the remaining parts of ACRO3 and to reduce the RCF draw.

Johnny Tsolis: The proceeds from the equity issue and the seed portfolio sale has been used to call the remaining parts of ACR03 and to reduce the RCF draw. The leverage ratio has been reduced to 2.3 when adjusting for the remaining EUR 50 million proceeds from the portfolio sale that will be settled later in Q3. We expect to refinance the outstanding part of ACR04 in September this year, most likely using a combination of existing funds and a new bond placement.

Speaker #2: The leverage ratio has been reduced to 2.3 when adjusting for the remaining $50 million proceeds from the portfolio sale, which will be settled later in Q3.

Speaker #2: We expect to refinance the outstanding part of ACRO4 in September this year, most likely using a combination of existing funds and a new bond placement.

Speaker #2: However, the latter is dependent on market conditions. Let's move to the second major highlight from Q2—the result of the book value assessment. Please turn to page five in the presentation.

Johnny Tsolis: However, the latter is depending on market conditions. Let's move to the second major highlight from Q2, the result of the book value assessment. Please turn to page five in the presentation. Let me spend one minute on the background.

Speaker #2: Let me spend one minute on the background. If you look at the curve on the left-hand side and focus on the upper curve, which represents our active forecast as of 31st December 2025, you can see that it is increasing before it starts to decrease between 2027 and 2028.

Johnny Tsolis: If you look at the curve on the left-hand side and focus on the upper curve, which represents our active forecast per 31 December 2025, you can see that it is increasing before it starts to decrease between 2027 and 2028. In order for us to reach this curve, we had anticipated a number of improvements in relevant macroeconomic factors. For example, that Germany should be out of recession, interest rates should go down instead of up, inflation down, et cetera.

Speaker #2: In order for us to reach this curve, we had anticipated a number of improvements in relevant macroeconomic factors. For example, that Germany should be out of recession, interest rates should go down instead of up, inflation down, et cetera.

Speaker #2: We had also expected certain regulatory factors to improve. As we moved into 2026, it gradually became clear that these improvements were not materializing as expected, and in Q1 the unsecured NPL collections fell to 89% of the active forecast.

Johnny Tsolis: We had also expected certain regulatory factors to improve. As we moved into 2026, it gradually became clear that these improvements were not materializing as expected, and in Q1, the unsecured NPL collections fell to 89% of active forecast.

Speaker #2: Unfortunately, the unsecured NPL collections have continued to fall compared to the active forecast in Q2, and would have been down to 81% performance in Q2 if no curve adjustments had been done.

Johnny Tsolis: Unfortunately, the unsecured NPL collections have continued to fall compared to the active forecast in the second quarter and would have been down to 81% performance in Q2 if no curve adjustments had been done. As we announced in April, we initiated a full assessment of our back books to address the decline in collection performance. During this assessment, we have revised all our underlying assumptions and implemented this into an improved and more data-driven model.

Speaker #2: As we announced in April, we initiated a full assessment of our back books to address the decline in collection performance. During this assessment, we have revised all our underlying assumptions and implemented these into an improved and more data-driven model.

Speaker #2: This model has improved by obtaining more and better collection data as the company has matured over the years. The result of the assessment is lower expected collections and a differently shaped collection curve.

Johnny Tsolis: This model has been enabled by obtaining more and better collection data as the company has matured over the years. The result of the assessment is less expected collections and a differently shaped collection curve, as you can see on the graph to the left, and the decay rates are aligned with the market.

Speaker #2: As you can see on the graph to the left, the decay rates are aligned with the market. We have also illustrated how the new collection curve looks compared to the actual unsecured collection in the last 18 months, marked as 'actual collection.'

Johnny Tsolis: We have also illustrated how the new collection curve looks compared to the actual unsecured collection the last 18 months, marked as actual collection. The new curve will obviously translate into a significantly negative revaluation for the unsecured NPL book. I will go through more details on the next slide. The total negative revaluation amounts to EUR 320 million, corresponding to 33% of the unsecured NPL book value.

Speaker #2: The new curve will obviously translate into a significantly negative revaluation for the unsecured NPL book. I will go through more details on the next slide.

Speaker #2: The total negative revaluation amounts to $320 million, corresponding to 33% of the unsecured NPL book value. The amount is approximately 10% lower than Fortress pricing assumptions in relation to the private placement.

Johnny Tsolis: The amount is approximately 10% lower than Fortress pricing assumptions in relation to the private placement. If we deep dive a bit more into the vintages affected, pre-2021 vintages and the German 2021 vintage account for 92% of the total revaluation. Norway and Sweden have the largest adjustments, both in nominal terms and relative to book value. Spanish secured portfolios are still overperforming and it's not part of the process.

Speaker #2: If we deep dive a bit more into the vintages affected, pre-2021 vintages and the German 2021 vintage account for 92% of the total revaluation.

Speaker #2: Norway and Sweden had the largest adjustments, both in nominal terms and relative to book value. Spanish secured portfolios are still overperforming, and it's not part of the process.

Speaker #2: Unsecured collection performance was lifted to 102% in June after implementing the new curves. Axactor expects future collections to be in line with the collection curves and hence no further revaluation will be needed.

Johnny Tsolis: Unsecured collection performance was lifted to 102% in June after implementing the new curves. Axactor expects future collection to be in line with collection curves and hence, no further revaluation will be needed. With that, I leave the word to Nina for the financial update.

Speaker #2: With that, I hand the word over to Nina for the financial update.

Speaker #1: Thank you, Johnny. So now I'll take you through the Q2 financial performance, starting with the overall figures and then providing a bit more context on what is behind the numbers.

Nina Mortensen: Thank you, Johnny. I will take you through the Q2 financial performance, starting with the overall figures and then a bit more context on what is behind the numbers. Gross revenue for the group ended at EUR 78 million in the quarter, down 4% compared to the second quarter of 2025. As I also explained in the Q1 report in May, the decline is largely due to the portfolio sales in Spain and Germany last year and limited NPL investments. The NPL segment reported gross revenue of EUR 62 million. Excluding the portfolio sold last year, the segment gross revenue decreased 4% compared to Q2 2025. The TPC segment continued to deliver well with a solid top line of EUR 16 million, up 3% from the second quarter last year.

Speaker #1: Gross revenue for the group ended at $78 million in the quarter, down 4% compared to the second quarter of 2025. As I also explained in the Q1 report in May, the decline is largely due to the portfolio sales in Spain and Germany last year, and limited NPL investments.

Speaker #1: The NPL segment reported gross revenue of $62 million. Excluding their portfolio sold last year, the segment's gross revenue decreased 4% compared to Q2 2025.

Nina Mortensen: The NPL segment reported gross revenue of EUR 62 million. Excluding the portfolio sold last year, the segment gross revenue decreased 4% compared to Q2 2025. The TPC segment continued to deliver well with a solid top line of EUR 16 million, up 3% from the second quarter last year.

Speaker #1: The PPC segment continued to deliver well, with a solid top line of $16 million, up 3% from the second quarter last year. Let's look a bit more into the details of each of the business segments, starting with NPL on the next slide.

Nina Mortensen: Let's look a bit more into details on each of the business segments, starting with NPL on the next slide. As Johnny explained earlier, the NPL segment was heavily impacted by the negative revaluations of EUR 320 million in the quarter, and total revenue for the segment ended at negative EUR 274 million. The NPL collection performance, including both unsecured and secured portfolios, ended at 93% for the quarter. Please note that the reported collection performance includes the updated curves with effect from June, while April and May are reported based on unadjusted collection curves. While unsecured portfolios have been underperforming, the secured portfolios continued to perform strongly this quarter. The NPL investments were EUR 19 million in the second quarter and EUR 55 million so far this year. Portfolio investments are expected to pick up with the significantly improved investment capacity.

Speaker #1: As Johnny explained earlier, the NPL segment was heavily impacted by negative revaluations of $320 million in the quarter, and total revenue for the segment ended at negative $274 million.

Speaker #1: The NPL collection performance, including both unsecured and secured portfolios, ended at 93% for the quarter. Please note that the reported collection performance includes the updated curves with effect from June, while April and May are reported based on unadjusted collection curves.

Nina Mortensen: Please note that the reported collection performance includes the updated curves with effect from June, while April and May are reported based on unadjusted collection curves. While unsecured portfolios have been underperforming, the secured portfolios continued to perform strongly this quarter. The NPL investments were EUR 19 million in the second quarter and EUR 55 million so far this year. Portfolio investments are expected to pick up with the significantly improved investment capacity.

Speaker #1: While the unsecured portfolios have been underperforming, the secured portfolios continue to perform strongly this quarter. The NPL investments were $19 million in the second quarter, and $55 million so far this year.

Speaker #1: Portfolio investments are expected to pick up with the significantly improved investment capacity. The higher investment capacity comes from both the proceeds from the equity raise, but also through the establishment of the new co-investment structure with Fortress.

Nina Mortensen: The higher investment capacity comes from both the proceeds from the equity raise, but also through establishment of the new co-investment structure with Fortress. Please turn to next slide for comments on the development in the TPC segment. The TPC revenues ended at EUR 16 million for the quarter, up 3% from the corresponding quarter last year. As for Q1 last year, the second quarter of 2025 also saw positive one-off impacts on a specific contract in Spain, impacting the growth for this quarter. Adjusted for this one-off impact, the underlying year-over-year growth was 5%. The growth is predominantly driven by new contracts in Norway and a strong performance in Germany. The Norwegian landmark deal is performing very well, but is experiencing some minor delays in onboarding of certain key segments. The contribution margin ended at 36%, up from 31% in the second quarter 2025.

Speaker #1: Please turn to the next slide for comments on the developments in the PPC segment. The PPC revenues ended at $16 million for the quarter, up 3% from the corresponding quarter last year.

Speaker #1: As for Q1 last year, the second quarter of 2025 also saw positive one-off impacts on a specific contract in Spain, impacting growth for this quarter.

Nina Mortensen: As for Q1 last year, the second quarter of 2025 also saw positive one-off impacts on a specific contract in Spain, impacting the growth for this quarter. Adjusted for this one-off impact, the underlying year-over-year growth was 5%. The growth is predominantly driven by new contracts in Norway and a strong performance in Germany. The Norwegian landmark deal is performing very well, but is experiencing some minor delays in onboarding of certain key segments.

Speaker #1: Adjusted for this one-off impact, the underlying year-over-year growth was 5%. The growth is predominantly driven by new contracts in Norway and strong performance in Germany.

Speaker #1: The Norwegian Landmark deal is performing very well, but it's experiencing some minor delays in onboarding certain key segments. The contribution margin ended at 36%, up from 31% in the second quarter of 2025.

Nina Mortensen: The contribution margin ended at 36%, up from 31% in the second quarter 2025.

Speaker #1: The contribution margin is improving through both revenue growth and lower operating expenses. It is important to mention that Axactor receives excellent feedback from our clients on our tailored, high-quality deliveries.

Nina Mortensen: The contribution margin is improving through both the revenue growth along with lower operating expenses. It is important to mention that Axactor receives excellent feedback from our clients on our tailored high-quality deliveries. The pipeline for new clients remains strong across the geographies, and further growth is expected for the segment going forward. The capitalized servicing will also benefit from both the co-investment vehicle and the seed portfolio sale, as Axactor retains exclusive servicing rights for both vehicles. Let us move on to the next slide, where I present more details on the reported financials for the group. Due to the negative revaluation booked this quarter, total revenue at group level ended EUR -258 million, with EBITDA at EUR -290 million. The corresponding figures for Q2 last year were total revenues of EUR 64 million and an EBITDA of EUR 33 million.

Speaker #1: The pipeline for new clients remains strong across geographies, and further growth is expected for the segment going forward. The capitalized servicing will also benefit from both the co-investment vehicle and the seed portfolio sale, as Axactor retains exclusive servicing rights for both vehicles.

Nina Mortensen: The capitalized servicing will also benefit from both the co-investment vehicle and the seed portfolio sale, as Axactor retains exclusive servicing rights for both vehicles. Let us move on to the next slide, where I present more details on the reported financials for the group. Due to the negative revaluation booked this quarter, total revenue at group level ended EUR -258 million, with EBITDA at EUR -290 million. The corresponding figures for Q2 last year were total revenues of EUR 64 million and an EBITDA of EUR 33 million.

Speaker #1: Let us move on to the next slide, where I present more details on the reported financials for the group. Due to the negative revaluation booked this quarter, total revenue at group level ended at negative $258 million, with EBITDA at negative $290 million.

Speaker #1: The corresponding figures for the second quarter last year were total revenues of $64 million and an EBITDA of $33 million. The cash EBITDA was at a good level for the second quarter this year, ending at $46 million.

Nina Mortensen: The cash EBITDA was at a good level for Q2 this year, ending at EUR 46 million. As a final remark, we have initiated a review of the segment's reporting structure. The capitalized servicing will now benefit from both the co-investment vehicle and the seed portfolio sale, and the segment reporting will be adapted to better reflect the impact of these changes. We expect to report according to the new structure from the next quarter. With that, I will now hand it back to Johnny for some additional comments on the key focus areas going forward.

Speaker #1: As a final remark, we have initiated a review of the segment reporting structure. The capitalized servicing will now benefit from both the co-investment vehicle and the seed portfolio sale, and the segment reporting will be adapted to better reflect the impact of these changes.

Speaker #1: We expect to report according to the new structure from the next quarter. With that, I'll now hand it back to Johnny for some additional comments on the key focus areas going forward.

Nina Mortensen: We expect to report according to the new structure from the next quarter. With that, I will now hand it back to Johnny for some additional comments on the key focus areas going forward.

Speaker #2: Thank you so much, Nina. I would like to wrap up this presentation by emphasizing our key focus areas going forward. These are, in our opinion, the most important factors to succeed with in order to deliver on our updated financial targets that were presented as part of the equity transaction.

Johnny Tsolis: Thank you so much, Nina. I would like to wrap up this presentation by emphasizing our key focus areas going forward. These are, in our opinion, the most important factors to succeed with in order to deliver on our updated financial targets that was presented as part of the equity transaction. I will not go through the financial targets now, but you can find these on page 16 in the presentation. Firstly, we are resuming full focus on building an attractive NPL investment pipeline. The new co-investment structure is in place, and now we need to continue to identify and acquire attractively priced NPL portfolios. This is one of the most important value drivers in order to reach the financial targets for 2027 and beyond. Secondly, we will continue to fight for new, attractive large size bank and finance customers in the TPC segment.

Speaker #2: I will not go through the financial targets now, but you can find these on page 16 in the presentation. Firstly, we are assuming full focus on building an attractive NPL investment pipeline.

Johnny Tsolis: Firstly, we are resuming full focus on building an attractive NPL investment pipeline. The new co-investment structure is in place, and now we need to continue to identify and acquire attractively priced NPL portfolios. This is one of the most important value drivers in order to reach the financial targets for 2027 and beyond. Secondly, we will continue to fight for new, attractive large size bank and finance customers in the TPC segment.

Speaker #2: The new co-investment structure is in place, and now we need to continue to identify and acquire attractively priced NPL portfolios. This is one of the most important value drivers in order to reach the financial targets for 2027 and beyond.

Speaker #2: Secondly, we will continue to fight for new, attractive, large-sized bank and finance customers in the PPC segment. Operational excellence is an important part of securing the top line and delivering on the active forecasts going forward.

Johnny Tsolis: Operational excellence is an important part of securing the top line and to deliver on the active forecast going forward. We will continue to improve cost of funding, starting with refinancing of ACR04 in September this year. Lastly, we will work hard to continue to increase efficiency through further automation with support from AI to secure our strong cost position. With that, we open up for questions.

Speaker #2: We will continue to improve our cost of funding, starting with the refinancing of ACR 04 in September this year. And lastly, we will work hard to continue increasing efficiency through further automation, with support from AI, to secure our strong cost position.

Speaker #2: With that, we open up for questions.

Speaker #3: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.

Johnny Tsolis: We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. If you have logged in via the webcast, please use the Q&A button to submit your questions. Please stand by while we compile the Q&A roster. There are no questions on the audio line at this time. I will hand it over to the management team to address any text-based questions.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device.

Speaker #3: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #3: If you are muted locally, please remember to unmute your device. If you have logged in via the webcast, please use the Q&A button to submit your questions.

Operator: If you have logged in via the webcast, please use the Q&A button to submit your questions. Please stand by while we compile the Q&A roster. There are no questions on the audio line at this time. I will hand it over to the management team to address any text-based questions.

Speaker #3: Please stand by while we compile the Q&A roster. There are no questions on the audio line at this time. I will hand it over to the management team to address any tax-based questions.

Speaker #2: Thank you so much. The first question is: can you give us the updated figure for your investment capacity, and details on the size of the July investments?

Johnny Tsolis: Thank you so much. The first question is: can you give us the updated figure for your investment capacity and details on the size of the July investments? The investment capacity depends on a few things. In our case, specifically, how much money we raise in the bond market going forward. Because as you all know, we have the ACR04 that we can, and we will repay now in September. But if we only use our RCF to repay it, of course, that will eat from the investment capacity. If we do raise bond market and refinance in the bond market, we will have investment capacity to deliver on the financial targets as we have mentioned earlier, which is EUR 200 to 400 million per year.

Speaker #2: The investment capacity depends on a few things. In our case specifically, how much money we raise in the bond market going forward. Because, as you all know, we have the ACR 04 that we can, and we will, repay now in September.

Speaker #2: But if we don't—if we only use our RCF to repay it, of course that will eat from the investment capacity. But if we do raise in the bond market and refinance in the bond market, we will have investment capacity to deliver on the financial targets as we have mentioned earlier, which is €200 million to €400 million per year.

Johnny Tsolis: But if we only use our RCF to repay it, of course, that will eat from the investment capacity. If we do raise bond market and refinance in the bond market, we will have investment capacity to deliver on the financial targets as we have mentioned earlier, which is EUR 200 to 400 million per year.

Speaker #2: And then the second question is, can you give some more details on the Norwegian Landmark deal and the delays in onboarding of certain key elements?

Johnny Tsolis: Second question is: can you give some more details on the Norwegian landmark deal and the delays in onboarding of certain key elements? Yes, I can do that. First of all, I would like to say that the agreement delivers better than expected on the received volumes. The customer has also transferred additional surveillance portfolios that was not part of the original agreement. However, we have a delay on the largest segment, so it will not be transferred before 1 January 2027, compared to the plan, which was 1 April 2026. That unfortunately gives us a delay in we see growth. Then we have the next question is: What type of macroeconomic parameters and regulatory factors were expected to improve in the last ERC? Are there any upsides to the curve? What type of macroeconomic assumptions do you have now?

Speaker #2: Yes, I can do that. First of all, I would like to say that the agreement delivers better than expected on the received volumes. The customer has also transferred additional surveillance portfolios that were not part of the original agreement.

Speaker #2: However, we have a delay on the largest segment, so it will not be transferred before 1 January 2027, compared to the plan, which was 1 April 2026.

Johnny Tsolis: However, we have a delay on the largest segment, so it will not be transferred before 1 January 2027, compared to the plan, which was 1 April 2026. That unfortunately gives us a delay in we see growth. Then we have the next question is: What type of macroeconomic parameters and regulatory factors were expected to improve in the last ERC? Are there any upsides to the curve? What type of macroeconomic assumptions do you have now?

Speaker #2: So, that unfortunately gives us a delay in PPC growth. Then we have the next question: what type of macroeconomic parameters and regulatory factors were expected to improve in the last ERC?

Speaker #2: Are there any upsides to the curve? What type of macroeconomic assumptions do you have now? So, first of all, I think when it comes to the macro parameters, it's the ones that you know very well.

Johnny Tsolis: First of all, I think when it comes to the macro parameters, it is the ones that you know very well. It is interest rate development, inflation, GDP growth, basically all the most common macroeconomic parameters that you will use to describe an economy. I think there will always be upside and downside risk in a forecast, and we believe it to be balanced. On the regulatory side, that is a very complex question. I think we have to take that offline because it is not. But it is the normal, also what we have described earlier. It is payment 3 months. That is one thing. It is like you saw in Sweden, if the country is doing something on regulatory, if you can deduct interest rates on consumer loans or not, that is one thing. It is the normal fee regime, the development in what kind of prices can we take from the debtors, et cetera.

Speaker #2: It's interest rate development, inflation, GDP growth—basically all the most common macroeconomic parameters that you would use to describe an economy. I think there will always be upside and downside risks in the forecast, and we believe it to be balanced.

Speaker #2: On the regulatory side, that's a very complex question. I think we have to take that offline, because it's not—but it's the normal, also what we have described earlier.

Johnny Tsolis: I think we have to take that offline because it is not. But it is the normal, also what we have described earlier. It is payment 3 months. That is one thing. It is like you saw in Sweden, if the country is doing something on regulatory, if you can deduct interest rates on consumer loans or not, that is one thing. It is the normal fee regime, the development in what kind of prices can we take from the debtors, et cetera.

Speaker #2: It's payment-free months. That is one thing. Like you saw in Sweden, if the country is doing something regulatory, on if you can deduct interest rates on consumer loans or not, that is one thing.

Speaker #2: It's the normal fee regime, the development in what kind of prices we can take from the debtors, et cetera. So it's a long list of different regulatory elements that's included.

Johnny Tsolis: So it is a long list of different regulatory elements that is included. I do not have the full list in front of me now, unfortunately. Then we have, let's see. Yeah, and then the last part of it, what type of macro assumptions do you have now? This is something that we do not disclose. This is competitive sensitive, so I will not move into that. Then we have, let's see, what is the investment capacity at such a precedent, potentially throughout 2026, given all refinancing? I already answered it. Then the next question, Nina, I will leave for you, which is, I can read the question. Why did we not see any tax benefits from the revaluation?

Speaker #2: I don't have a full list in front of me now, unfortunately. Then we have—let's see—yeah, and then the last part of it.

Speaker #2: What type of macro assumptions do you have now? This is something that we don't disclose. This is competitively sensitive, so I will not move into that.

Speaker #2: Then we have, let's see... What is the investment capacity at present, potentially throughout 2026, given all refinancing? I already answered it. And then the next question, Nina, I will leave for you.

Johnny Tsolis: Then we have, let's see, what is the investment capacity at such a precedent, potentially throughout 2026, given all refinancing? I already answered it. Then the next question, Nina, I will leave for you, which is, I can read the question. Why did we not see any tax benefits from the revaluation?

Speaker #2: Which is—I can read the question: Why did we not see any tax benefits from the revaluation?

Speaker #4: Yes, I can answer that one. We have, in line with also our press approval approach, when it comes to recognition of tax losses in the balance sheet.

Nina Mortensen: Yes, I can answer that one. We have in mind also our correct and prudent approach when it comes to recognition of tax losses in the balance sheet. As we always do, we also do a full review of the tax position of that at year-end. At this point, we have not put any tax losses in the balance sheet.

Speaker #4: But as we always do, we will also do a full review of the tax position at year-end. But at this point, we have not put any tax losses in the balance sheet.

Speaker #2: Very good. And then we have the next one: Can you quantify the existing effects from AI and future expectations? And to be honest, that is also a very complex question.

Johnny Tsolis: Very good. Then we have the next one. Can you quantify the existing effects from AI and future expectations? To be honest, that is also a very complex question. What I can tell you is that we are doing everything in our power to test out. We have now implemented a new dialer system, which is very suitable for using AI. We are using AI in training. We are using in some back office functions. We are also testing it out with different chatbots and so on. We see effects, but we need to develop with the markets. As far as I know, there is no one of the large competitors that are using AI to a large extent.

Speaker #2: What I can tell you is that we're doing everything in our power to test it out. And we have now implemented a new dialer system, which is very suitable for using AI.

Speaker #2: We are using AI in training. We are using it in some back office functions. We are also testing it out with different chatbots and so on.

Johnny Tsolis: We are using in some back office functions. We are also testing it out with different chatbots and so on. We see effects, but we need to develop with the markets. As far as I know, there is no one of the large competitors that are using AI to a large extent.

Speaker #2: And we see effects, but we need to develop with the markets. As far as I know, none of the large competitors are using AI to a large extent.

Speaker #2: And when I say to a large extent, if you really want large effects for our industry, or at least for Axactor, you need to have chatbots that are good enough, and you need clients that are ready to use them.

Johnny Tsolis: What I mean to a large extent, if you really want large effects for our industry, or at least for Axactor, you need to have chatbots that is good enough, and you need clients that are ready to use it. Then, so you could start reducing substantial number of FTEs in the call centers. That is where we have most of our people. When we reach that level, you can see substantial effects. So far, we have not seen massive effects, but we expect them to gradually be implemented over the next quarters. Then we have the next question. When do you expect dividends to be paid to shareholders? I think this was something that we announced in connection with the equity transaction, that the first possible dividend payment will be in June, July 2027.

Speaker #2: And then, you could start reducing a substantial number of FTEs in the call centers. That is where we have most of our people. And when we reach that level, you could see substantial effects.

Speaker #2: But so far, we have not seen massive effects, but we expect them to gradually be implemented over the next quarters. Then we have the next question.

Johnny Tsolis: So far, we have not seen massive effects, but we expect them to gradually be implemented over the next quarters. Then we have the next question. When do you expect dividends to be paid to shareholders? I think this was something that we announced in connection with the equity transaction, that the first possible dividend payment will be in June, July 2027.

Speaker #2: When do you expect dividends to be paid to shareholders? And I think this was something that we announced in connection with the equity transaction, that the first possible dividend payment will be in June or July 2027.

Speaker #2: And that is because we have a bond ACR of 5, and there we have a covenant, which limits it. So, we need to refinance that bond.

Johnny Tsolis: That is because we have a bond, ACR05, and there we have a covenant which limits it. We need to refinance that bond or ask for a waiver. But in reality, I think we will refinance it before we are ready to pay a dividend. We have a next question. Having difficulties with the voice dial-in when hitting star one. Sorry, Kyle, I cannot help you with that. But the rest of them now that we have the breakdown of where the write-offs are. Are you able to give any more specific on issues in Sweden, Norway pre-2021, and Germany 2021? I think that you know that Sweden has been a market that has developed negatively over a long time. I don't want to go into specific details on these countries other than it's also Germany.

Speaker #2: Or ask for a waiver. But in reality, I think we will refinance it before we are ready to pay dividends. Then we have the next question.

Speaker #2: Having difficulties with the voice dial-in when hitting star one. Okay. Sorry, Kyle, I cannot help you with that. But to the rest of the question, now that we have the breakdown of where the write-offs are.

Speaker #2: Are you able to give any more specifics on issues in Sweden, Norway pre-2021, and Germany in 2021? I think that you know Sweden has been a market that has developed negatively over a long time.

Johnny Tsolis: Are you able to give any more specific on issues in Sweden, Norway pre-2021, and Germany 2021? I think that you know that Sweden has been a market that has developed negatively over a long time. I don't want to go into specific details on these countries other than it's also Germany.

Speaker #2: I don't want to go into specific detail on these countries, other than to say it's also Germany. You know, it has been in recession for a very long time period now.

Johnny Tsolis: You know it has been in recession for a very long time period now. I don't want to go into more details on that, unfortunately, Kyle. That was what we have so far. Yeah, now we have one more question here. One of your competitors reported high competition across Europe for purchases on debt portfolios. How do you see the competition in the market? I have to say, yes, we see relatively high competition in several geographies, especially some of the Specialised Debt Restructurer banks seems to be very aggressive in their pricing. But we continue to have a disciplined approach. We are still able to invest at satisfying prices in the markets where we have a strong position, which is especially Spain and Norway. We will not contribute to push market prices to unsustainable levels. Yeah, I think that was the last question.

Speaker #2: So I don't want to go into more detail on that, unfortunately, Kyle. That is what we have so far. Now, we have one more question here.

Speaker #2: One of your competitors reported high competition across Europe for purchases of debt portfolios. How do you see the competition in the markets? And I have to say, yes, we see relatively high competition in several geographies.

Speaker #2: Especially some of the SDR banks seem to be very aggressive in their pricing. But we continue to have a disciplined approach. We are still able to invest at satisfying prices in the markets where we have a strong position, which is especially Spain and Norway.

Johnny Tsolis: But we continue to have a disciplined approach. We are still able to invest at satisfying prices in the markets where we have a strong position, which is especially Spain and Norway. We will not contribute to push market prices to unsustainable levels. Yeah, I think that was the last question.

Speaker #2: And we will not contribute to pushing market prices to unsustainable levels. Yeah, I think that was the last question. So, thank you all for calling in.

Johnny Tsolis: Thank you all for calling in. Have a nice day.

Speaker #2: And have a nice day.

Speaker #1: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Axactor ASA presentation of Q2 2026 results.

Johnny Tsolis: This concludes today's call. Thank you for attending. You may now disconnect.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Johnny Tsolis: This event has now concluded. Thank you for joining Axactor ASA presentation of Q2 2026 results. The line will disconnect automatically.