Oslo, 23 March 2020

The coronavirus outbreak and the Government measures to limit the spreading of
the virus have created an extraordinary situation for people, organizations and
businesses in affected areas. Axactor hereby provides an update of the
operational and financial implications.

Axactor acts responsibly and in compliance with rules and recommendations from
national and local authorities in all the six countries with operations, both to
protect its employees and their families and local communities, and to ensure
that the company remains operational for its customers, debtors and partners. So
far, the company has registered zero cases of COVID-19 among its employees.

Operational update
The company has activated business continuity plans in response to the situation
and has to date remained in full operation in all countries. Most of the
employees are now working from remote locations, with exception of certain
critical roles that require physical presence. The call centres in Valladolid
and Alicante in Spain have remained open.

Axactor has since the beginning in 2015 been built as a technology and IT-driven
company with secure and scalable digital solutions at the core of its operating
model. Axactor's cloud-based collection systems are supported by outsourced
IT-solutions, and in combination with a lean and flexible operating model this
has enabled Axactor to remain in full operation despite the current
extraordinary environment.

As the COVID-19 virus continues to spread, Axactor is working on the assumption
that the macroeconomic situation may worsen further in the coming months. The
company has not yet implemented temporary workforce reductions, although this is
considered as part of the ongoing cost savings initiatives to adapt to the
situation.

Responsible Collection
Axactor is observing lower collection performance as a result of the
comprehensive COVID-19 measures, particularly in Italy and Spain. This is both
due to a worsened financial situation for many debtors but also slower processes
at bailiffs and public notary offices. The Italian operation, which is hardest
hit, accounts for approximately 5% of revenue and a lower percentage of the
results. In Spain, representing approximately 45% of revenue, the closure of
public offices also affects the completion of REO sales agreements and
realization of secured assets. The collection performance has so far held up
better in Germany and the Nordics.

Axactor acknowledges that the debt management and collection industry plays an
important role in society, not least in times like these. "In the current
environment, Axactor is committed to finding the best possible solutions for our
customers, debtors and partners. Sustainability begins within the organization,
and everyone from the top management throughout the entire organization are
accountable for conducting business in an ethical, sustainable and socially
responsible manner. We remain confident that we are equipped to navigate through
this economic crisis," says Endre Rangnes, Axactor CEO.

Overall, Axactor sees a significant revenue shortfall in the first quarter and a
further revenue decline in the second quarter 2020, although the total effects
are still too early to quantify. Looking further ahead into the second half of
the year, the company expects the situation to generate increasing 3PC volumes
due to a higher volume of non-performing loans on the customers' balance sheets.


Financial position
Axactor had total equity of EUR 378 million at the end of 2019 and an equity
ratio of 30%. The cash balance was EUR 72 million. The equity was further
strengthened through an equity issue in February 2020, which generated gross
proceeds of approximately EUR 51 million.

Even though revenue and EBITDA levels in the first quarter of 2020 will fall
significantly below forecasts, the operational cash flow from the business will
contribute positively to liquidity.

The challenging global economic outlook and highly volatile financial markets
will likely mean that an increasing amount of non-performing loans will come to
the market at significantly lower prices. Due to the current high uncertainty,
Axactor will nevertheless hold back on investments in new NPL portfolios while
remaining committed to already entered forward flow agreements. At the end of
2019, Axactor had entered into forward flow agreements with an estimated capital
requirement level of EUR 178 million for 2020.

For additional information, please contact: