We are passionate, proactive
and act with integrity
Axactor helps people and
companies to a better future
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Contents
This is Axactor
Axactor at a glance
4
Strategy and financial targets
5
Letter from the CEO
8
Key events 2022
10
Highlights of the year
11
Key figures
12
Sustainability
Introduction and highlights
13
Building a viable financial system for
people and society
17
People
27
Environment
38
Governance
Group executive management
41
Board of Directors
43
Board of Directors’ report
45
Corporate governance report
56
Remuneration report
65
Auditor’s assurance report
78
Financials
Consolidated financial statements
80
Financial statements of Axactor ASA
128
Responsibility statement
148
Auditor’s report
149
Alternative performance measures
153
Appendices
Glossary
156
GRI content index
158
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Axactor at a glance
Axactor is a European based company, investing in non-performing loan
portfolios and offering services within debt collection. Axactor believes that the
debt management and collection business fulfill an important role in society.
The purpose is all about helping people and companies to a better future.
The company’s continuous focus on innovations, digital and state-of-the-art
solutions for managing non-performing loans, together with cost leadership
and extensive industry knowledge, has placed Axactor as one of the main
players in the European debt-collection industry.
Axactor’s vision is to be the industry benchmark.
Passion
We are passionate
about everything
we do
Trust
We act with integrity,
create trust, and build
long-term relationships
Proactive
We are proactively
looking for things
to improve
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Strategy and financial targets
Axactor has a narrow focus on handling own and third-parties’ non-performing loans originated within the bank and finance industry. With digital operations and
streamlined systems and organizations, Axactor’s main competitive advantage is its industry-leading cost position. After a period of aggressive growth during the
first years after inception, Axactor spent 2020-2021 securing the foundation for future profitability. 2022 marked a return to growth, with double-digit return on
equity in this first year of the value creation phase.
Estimated remaining collections
EUR million
317
633
1,388
2,038
2,169
2,141
2,545
Value generation
Establish platform
Secure
foundation
2025202420232022202120202019201820172016
• Aggressive growth
• Market entries
• Establish IT and operations
• New strategy
• Stabilize
operations
• Exit non-core
segments
• Grow size in existing markets
• Operational excellence
• Initiate dividend payments
Return on equity to shareholders
(%)
-6%
1%
2%
6%
-6%
-9%
10%
Value generation
Establish platform
Secure
foundation
2025202420232022202120202019201820172016
9%
9+%
ROE to
shareholders
Continuing
operations
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This is AxactorThis is Axactor | Strategy and financial targetsThis is Axactor | Strategy and financial targets
Axactor has set financial targets which outline
a clear direction going forward
Dimension Targets 2023 Targets 2024 and beyond
Growth
NPL investments of EUR 100–150 million NPL investments of EUR 200 – 300 million
Profit
Minimum 9% ROE To be announced towards end of year
Returns
20–50% dividend pay-out ratio
1
20–50% dividend pay-out ratio
Leverage
2
Maximum leverage of 3.5x at year-end Maximum leverage of 3.5x
1
Based on FY2023 results and onwards
2
Leverage = (net interest-bearing debt / pro-forma adjusted cash EBITDA). As defined in the bond covenants
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This is AxactorThis is Axactor | Strategy and financial targetsThis is Axactor | Strategy and financial targets
To deliver on the financial targets Axactor has a holistic
approach to where we want to be and how to get there
Axactor’s strategy consists of three levers. Each lever is supported by three
KPIs which are outlined below.
Growth to continue to harvest economies
of scale and strengthen the market position.
Furthermore, Axactor has been able to secure
more attractive prices during recent years which
makes growth even more attractive to increase
return on equity.To monitor the development
the Group is closely monitoring three KPIs: 1)
Development in 3PC contribution margin, 2)
Gross IRR on new NPL portfolios and 3) NPL
investment level
Cost leadership is the competitive advantage
of Axactor. The Group was incepted to disrupt
the industry on cost-to-collect and is believed
to possess a position as industry leading today.
This has been possible through starting with
“clean sheets” and investing in cloud based
unified IT-infrastructure, optimized processes
and a strong cost culture. To excel further
Axactor is currently investing extensively in
data-driven valuation and operation. To monitor
the development the Group is closely monitoring
three KPIs: 1) NPL cost-to-collect, 2) Employee
satisfaction and 3) Debtor treatment score
Bank & finance is the core industry for Axactor.
The claims are perfectly suited for the operational
set-up of Axactor and the Group invests
significantly in competence and processes
to be the best partner for the Bank & finance
industry. To monitor the development the Group
is closely monitoring three KPIs: 1) Benchmark
performance, 2) ESG rating and 3) Customer
survey score
Values
Passion | Trust | Proactive
Strategy
Purpose
Growth Cost
leadership
Bank
& finance
“Helping people and companies to a better future”
“Industry benchmark”
Vision
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Letter from the CEO
/
Hard work pays off
2022 has been all about doing more of the things we do well. We have worked relentlessly over the past
years to position the company for sustainable value creation. This is the first year where I really feel this
is visible also in our financial statements. We continue our strategy of being best on cost, maintaining
a strict pricing discipline and building scale. The result of our efforts is the most profitable year in the
history of Axactor.
Skill through innovation and data driven operations
Enhancing our collection efficiency is one of the keys to our
success. We believe in building high-quality processes, utilizing
advanced analytics and the high competence of our employees.
We will continue to invest in Group wide business intelligence and
machine learning solutions, combined with local expertise and
knowledge. We encourage new and innovative ideas to maintain
our industry-leading cost-to-collect position.
A long-lasting trend is the increased level of self-service through digital
solutions. We have seen sharp increases in the usage of our debtor
portal in 2022, in particular in the Nordic countries. As we make more
and more options available for the debtors to service themselves,
not only do we make their lives easier—we also free up time in our
contact centers to handle the more complex cases, helping people in a
vulnerable situation to find a way out of their financial difficulties.
As we move further into digitalization of our collection processes,
information security becomes increasingly important. With this
in mind, we strive to protect privacy and the data we process in
the best possible way every day. Still, we must also focus on how
to minimize the consequences of a potential successful unlawful
attempt at entering our databases. In 2022 we implemented a
complete network segmentation, drastically reducing the amount of
data that potential successful intruders would be able to access.
The Axactor family
Our hard-working employees are the backbone of our business.
Taking good care of and investing in our high performers is one
of the most important tasks for me and our leaders. This year’s
employee satisfaction survey shows an overall improvement. All
the five countries that were certified as a Great Place To Work in
2021 maintained their certification, while Spain edged closer to
the level required for certification. Nonetheless, we also identified
several areas with improvement potential. In 2023, we will continue
our work to secure the wellbeing of our most important assets.
Early this year, we welcomed 150 new employees to the Axactor
family when we acquired the Italian company Credit Recovery
Service. This acquisition has significantly increased our presence
in the Italian 3PC market and has delivered well above expectations
this year. The balanced business model with both 3PC and NPL
offerings remain at the heart of our business, creating synergies
in terms of both cost efficiency, deal origination and workforce
flexibility.
Volatile markets
Looking ahead, we are expecting continued macroeconomic
turbulence. These are undeniably troubling times for many of our
debtors, and we are here to help them find sustainable solutions
to honor their obligations. So far, we have seen limited impacts of
the worsened economic situation on our collection. With continued
low unemployment rates, we expect collection to hold up well also
going forward. However, times like these have historically resulted
in fewer large settlements with more debtors opting for payment
plans.
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This is AxactorThis is Axactor | Letter from the CEOThis is Axactor | Letter from the CEO
From a business perspective, challenging times tend to create
opportunities. We invested substantially in new NPL portfolios at
favorable prices in 2022, and we expect the price level to remain
attractive in 2023. We remain patient, with flexibility to act when
attractive opportunities arise, be it high-IRR portfolios, valuable
3PC clients, or low-cost funding options.
We aim for continued stability in 2023 and will stick to our newly
announced financial targets. We expect to deliver at least 9% return
on equity for our shareholders, and to distribute 20–50% of our
2023 result as dividends. At the same time, we will work to reduce
our leverage ratio to a maximum of 3.5x at the end of the year.
With the best result in the history of Axactor under our belt,
we will keep doing more of the things we do well, also in 2023.
The result of our efforts
is the most profitable year
in the history of Axactor
Johnny Tsolis,
CEO
I would like to take this opportunity to
reiterate our continued commitment
to the UN Global Compact initiative.
We present our second “Communication
of progress” incorporated into our
Sustainability report.
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Key events 2022
2022
2023
CRS acquisition
closed
IR newsletter
launch
NPS score: 62
Customer Satisfaction survey
Kristian Melhus elected
Chair of the Board
Initiated bond
re-purchase
Great Place To Work
certified in 5/6 countries
Axactor ASA converted
from an SE company
Cost and compliance review of
vendors, stricter procurement
procedure
Full network
segmentation
Financial targets
announced
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This is AxactorThis is Axactor | Key events 2022This is Axactor | Key events 2022
• 2022 marked a return to profit with the best
result in the history of Axactor
• Return on equity for continuing operations
of 10% (-6%), and return on equity to
shareholders of 9% (-9%)
• Collection performance stabilized close
to 100%
• Substantial investment level of EUR 288
million in accretive NPL portfolios (114),
securing profitable growth also for 2023
• Continued investments in business
intelligence and advanced analytics drove
further improvements in cost ratios in 2022,
as evidenced by an EBITDA margin of 50%
(26%) and an NPL cost-to-collect of 39% (44%)
• Acquired debt collection service provider
Credit Recovery Service (CRS), significantly
strengthening Axactor’s position in the Italian
3PC market
• Full network segmentation implemented,
substantially reducing the amount of data at
risk in the event of a successful cyber attack
• Publicly listed parent company converted
from a Societas Europaea (SE) company to
a Norwegian Allmennaksjeselskap (ASA)
• A total of EUR 50 million of own bonds
re-purchased at an average price below par
• Annual customer satisfaction survey shows
consistent strong results, with an average
score of 8.5/10, and a net promoter score of
62 (50)
• Five countries maintained Great Place To
Work certification, while Spain edged closer
to certification requirement
• Hedging instruments covering 60% of the
Group’s current gross debt in place for 2023,
limiting impact of increased interest rates on
financial expenses
/
Highlights of the year
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Key figures
Key figures presented are for continuing operations unless otherwise stated. Comparative
information has been re-presented to show continuing operations only, see note 32 for more
information on discontinued operations. Key figures that can not be directly found in the
Group’s consolidated statements are reconciled in the APM tables.
EUR million 2022 2021
Gross revenue 337 308
Total income 240 158
EBITDA 119 40
Cash EBITDA from continuing operations 218 192
Net profit/(loss) after tax from continuing operations 41 -25
Return on equity to shareholders
1
9% -9%
Return on equity, continuing operations 10% -6%
Equity ratio 29% 29%
Acquired NPL portfolios 288 114
Book value of NPL portfolios 1 253 1 096
Estimated remaining collection (ERC) 2 545 2 141
Number of employees (FTEs) 1 301 1 096
Price per share, last day of period (NOK) 5.88 7.55
Market capitalization (NOK million) 1 777 2 281
1
Return on equity to shareholders includes continuing and discontinued operations
Gross revenue
EUR million
337
10% y/y
ERC, NPL
EUR million
2,545
19% y/y
Return on equity
10%
continuing operations
EBITDA
EUR million
119
50% margin
Cash EBITDA
EUR million
218
Equity ratio
29%
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Sustainability
report 2022
Axactor’s purpose is to help people and
companies to a better future, not only by
ensuring that they get paid, but also by being
an aid to the companies and people with
financial difficulties, offering sustainable
solutions – enabling further investments and
economic growth. Axactor recognizes that
business has a role to play in solving social
challenges through responsible investments,
by supporting and developing the skills of
the employees, and by offering innovative
products that cater to customers’ needs.
This combined with faster payments and
respectful treatment of debtors, brings down
outstanding credits, secures a stronger
financial market, and increases quality of
life for many people in financial difficulties.
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SustainabilitySustainability | Introduction and highlightsSustainability | Introduction and highlights
Responsible operations are essential for the license to operate and
an enabler of long-term value creation. Sustainability begins from
within the organization, and a clear tone from the top is crucial.
To increase the transparency in its sustainability reporting, Axactor
reports according to GRI. Axactor believes that its reporting is in
accordance with GRI’s reporting principles in all material respects
as defined by the GRI Universal Standards (2021). See Axactor’s
GRI content index.
At Axactor, everyone is accountable for conducting business in
an ethical, sustainable, environmentally, and socially responsible
manner. Axactor practices good corporate governance, respect
internationally recognized human rights principles and supports
the UN Sustainable Development Goals (“SDGs”), emphasizing
especially its commitment to the goals 5, 8, 13 and 16, which
underpins the results of the materiality analysis. In 2021, Axactor
became a signatory to the UN Global Compact, which further
emphasized this and solidified Axactor’s commitment to the ten
principles of the UN Global Compact, in each of the four areas:
Human rights, labour, environment, and anti-corruption. To update
its stakeholders and society on its progress in implementing the ten
principles, Axactor needs to annually communicate on its progress
about its efforts in a “Communication of Progress”. This report
also incorporates Axactor’s second Communication on Progress
(“COP”).
The ten principles are all reflected in Axactor’s various Board
approved policies, being the cornerstone of Axactor’s governance
structure. The success of Axactor’s business is dependent on
the confidence earned from its stakeholders. Credibility is gained
by adhering to the given commitments, displaying honesty and
integrity, and reaching company goals solely through honorable
conduct.
Further information about Axactor’s corporate governance can be
found in the Corporate governance report included in the Annual
report 2022 page 56.
Human rights
Principle 1 Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2 make sure that they are not complicit in human rights abuses.
Labour
Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective
bargaining;
Principle 4 the elimination of all forms of forced and compulsory labour;
Principle 5 the effective abolition of child labour; and
Principle 6 the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7 Businesses should support a precautionary approach to environmental challenges;
Principle 8 undertake initiatives to promote greater environmental responsibility; and
Principle 9 encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery.
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SustainabilitySustainability | Introduction and highlightsSustainability | Introduction and highlights
Sustainability
highlights
Sustainability is of high
importance to Axactor and
has been an integral part
of the company since the
foundation in 2015. In 2022,
Axactor made numerous
improvements to its
sustainability performance.
A summary of the key achievements
made during the year and key focus
areas for 2023 are listed in the table and
explained in further detail throughout
this sustainability report.
Key achievements 2022 Key focus areas 2023
Environment
• Implemented GHG measurement tool
• Improved Group GHG inventory (climate accounts)
• Supported local initiatives to reduce waste and/or emissions
• Set specific emission reduction targets with a clear strategy towards 2035
• Reduce number of company cars and transition to hybrid/zero emission cars
where there is a business need
• Support local initiatives to reduce paper consumption, waste management,
use of second-hand furniture etc.
• Implement more comprehensive environmental considerations in procurement
Social
• Improved debtor complaint management
• Increased number of scorecards for fairer and more efficient operations
• Continued targeted efforts to improve gender equality and diversity
• Renewed certification of 5/6 countries as a Great Place to Work and improved score
for Spain
• Improved reporting on employee training hours
• New human rights policy
• Chat solution launched in Norway, Sweden and Finland
• Reduce voluntary employee turnover
• Improve diversity and gender equality
• Continue to improve stakeholders’ satisfaction
• Improve measurement of employee training hours and set targets
• Improve measurement of ethical debt collection
• Additional initiatives to reduce gender pay-gaps i.e., awareness among leaders,
improve process for salary adjustment, automatize reporting and connecting
local payroll systems with the centralized reporting system.
• Publish a human rights impact assessment
• Increased focus on purpose
Governance
• Strengthened information security incl. network segmentation and mobile device policy
• Improved regulatory watch
• Increased knowledge-sharing
• Expanded measurement model for portfolios of non-performing loans (NPL) with more input
variables capturing current and future macroeconomic conditions and use of scenarios
• Continued to simplify the legal structure
• Strengthened preventive and detective measures to combat financial crime
• Updated dawn raid manual
• Updated procurement and vendor management processes and procedures
• New tax policy
• Increase risk maturity
• Increase visibility of ESG measures in the financial performance
• Implement further information security measures i.e., improved cyber security
awareness trainings
• Continue to improve vendor management
• Introduce ESG metrics in portfolio valuation
• Continue to reduce complexity in legal structure
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SustainabilitySustainability | Introduction and highlightsSustainability | Introduction and highlights
Material issues and stakeholder engagement
Axactor has updated the materiality analysis during the year, to
ensure the continuous relevance of the material sustainability
aspects identified. These are the areas considered to be the
most important for Axactor and its long-term value creation. The
materiality analysis defines the challenges and issues that Axactor
and its stakeholders perceive as most important, and where impact
on society and the environment is considered most decisive.
The materiality analysis is based on feedback from external
and internal stakeholders who have responded to and provided
comments on a questionnaire based on relevant topics inspired
by the GRI standards, either by survey or through interviews.
External stakeholders have included customers, partners,
regulators, suppliers, investors, and lenders. Internal stakeholders
have included representatives of the Board, the Group executive
management, and employees. The survey covers key factors for
Axactor’s daily operations and long-term value creation related to
governance, people, and the environment. The focus areas and
associated issues are presented in the materiality matrix below.
The results of the materiality analysis have been substantially the
same for the last three years, which further confirms what the
stakeholders believe Axactor should focus on going forward.
In addition to the feedback provided by the stakeholders, Axactor
has also illustrated certain societal trends in the matrix, which also
impacts the Group’s focus, when setting targets and priorities.
These trends are illustrated in yellow in the matrix.
Reporting boundaries
Defining consistent boundaries for sustainability reporting is
challenging due to the complexity of ownership and operational
arrangements in six different countries, including, among others
different regulatory requirements. Axactor strives to be consistent
and transparent about variations in boundaries and provide a
complete report in line with industry practice. Implementation
of common reporting systems and development of common
definitions and reporting standards have raised the quality of
the report, but there are still improvements to be made i.e., to
be able to report correctly on incidents year over year. Historic
numbers are sometimes also adjusted due to changes in reporting
principles, changes of calculation factors used by authorities, or
re-classification of incidents after investigations.
Importance to company
Importance to stakeholders
• Ethical business behavior
• Ethical collection by treating debtors fairly
• Data security
• Debtor privacy
• Preventing financial crime and corruption
• Diversity, non-discrimination and equal opportunities
• Talent attraction and retention
• Responsible selection of clients and portfolios
• Working conditions
• Responsible value chain and partnerships
• Relationships with regulators and organizations
• Innovative and efficient product offering
• Sound economy for our clients
• Increase financial literacy in society
• Environmental footprint
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Building a viable financial system for people and society
The objectives of the Axactor Group are to engage efficiently, responsibly, and profitably for investors,
customers, debtors, partners, and employees. Axactor assists in improving cash flows, increasing liquidity,
and minimizing the risk for its customers, while also helping debtors get out of debt through fair debt
collection practices. Axactor builds trust and confidence through transparency. Strong ethical values
promoting fair treatment of debtors and other stakeholders protects the Group’s reputation and contributes
to its success. The Group’s corporate principles are reflected in policies and procedures, which describes
how to make decisions, act, and prioritize.
Axactor sets clear responsibilities and expectations for
its managers, employees, and partners. Employees and
representatives of Axactor shall always:
• respect human rights, respect the rights of employees, protect
the environment, enable fair competition, and combat financial
crime
• balance potential benefits of actions, against the consequences
to society
• incorporate profitable business with social, ethical, and
environmental goals and actions
• clearly communicate its demands and expectations regarding
corporate responsibility and ethical conduct to employees and
business partners
• have corporate responsibility as a defining factor when
developing and managing products and services
• have a transparent management structure in line with national
and international standards for good corporate governance
• have a strong compliance and internal control culture
• only cooperate with customers, business partners and suppliers
who operate in compliance with laws and regulations, good
business practices and who maintains high ethical and
environmental standards
• ensure that all shareholders and other financial market players
are treated and informed equally, and that the information is
consistent, reliable, available, and not misleading
UN Sustainable
Development Goal #16
Promote peaceful and inclusive societies for sustainable
development, provide access to justice for all and build effective,
accountable, and inclusive institutions at all levels
Why is this important?
Axactor’s focus on responsible and sustainable investment is in
the larger picture aimed at achieving good long-term returns with a
limited level of risk, while at the same time contributing to complete
avoidance of the violation of fundamental rights.
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SustainabilitySustainability | Building a viable financial system for people and societySustainability | Building a viable financial system for people and society
Effective governance structures further allow the Group to work
smoothly by ensuring that everyone has a clear understanding of
the distribution of roles, responsibilities, rights, and accountability.
The corporate governance of Axactor complies with statutory
regulations and generally accepted best practices as further
outlined in the Corporate governance report included in the Annual
report 2022 page 56. All new employees are introduced to the Code
of Conduct as part of their on-boarding and signs a declaration
confirming that this is read and understood. This committment
shall be re-confirmed during their employment. Axactor also has
in place a Supplier Code of Conduct, that the Group’s suppliers
are required to sign, to acknowledge that they, and any of their
affiliates, agents and suppliers, fully comply with applicable laws,
and adhere to internationally recognized environmental, social, and
corporate governance standards. Each supplier’s commitment
is reaffirmed through regular compliance questionnaires and/or
through use of Axactor’s audit rights. The Supplier Code of Conduct
includes a link to a whistleblower channel, which may be used to
report actual or potential breaches to the Supplier Code of Conduct
on the part of the supplier or Axactor.
Ethical debt collection is an essential part of a well-functioning credit market
The markets Axactor operates in have local varieties in the way
collection processes are performed, but the main principles of
the collection activities are quite aligned. This enables Axactor to
set common group wide operational targets and KPIs relevant for
all jurisdictions in which the Group operates. Axactor is handling
volumes at many stages of the credit lifecycle throughout the
different markets, from invoicing and pre-collection to legal
collection and long-time surveillance. Coupled with the element of
debt purchase, Axactor is truly an integrated part of the European
credit market. The debt collection industry enables banks, financial
institutions, and companies to provide credit. Axactor believes that
this responsibility should not be taken lightly, which is reflected in
the operational policy, where Axactor commits to providing services
in line with the highest ethical standards, and always compliant
with principles of good collection practices.
In most of the countries where Axactor operates, debt collection
is strictly regulated through specific debt collection acts and
regulations, requiring a license to operate. Many of the financial
supervisory authorities and/or associations have additional
certification requirements for both debt collection companies
and their employees. Axactor has all mandatory certifications
and licenses in place, and proactively seeks to certify employees
within the debt collection profession. Further, Axactor is actively
engaged in the local debt collection associations and was in 2022
represented in various committees working on specific topics,
such as new legislation and fair debt collection practices. The
engagement is motivated by protecting its own and the industry’s
interests, but always with integrity and through transparent means.
Axactor or its employees shall never mislead or try to obtain
information dishonestly, or through inappropriate lobbying. In
Finland, the application process to become a member of the local
debt collection association “Suomen Perimistoimistojen Liitto» is
underway, and expected to be finalized during 2023.
Country Debt collection association
Membership
Norway Virke inkasso and Finans Norge Yes
Sweden Svenska inkassoforeningen Yes
Germany Federal Association of German Debt Collectors (BDIU) Yes
Italy UNIREC Yes
Spain ANGECO Yes
Finland Suomen Perimistoimistojen Liitto In process
KPIs
As a listed company, Axactor reports to the market on a quarterly
basis. Adding to the financial numbers, Axactor has also set
measurements to ensure that the Group’s objectives are met in
view to ethical and sustainable debt collection, something which
Axactor considers to be closely linked to the economic value
creation. Axactor is happy to report that the Group has a strong
performance on both stakeholders’ satisfaction and operational
KPIs during 2022, underlining the fact that the Group is able to
deliver on its economic targets – in a sustainable manner.
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Stakeholder KPIs
In understanding key stakeholders’ satisfaction with Axactor’s
debt collection services, the following KPIs have been identified:
debtor, employee, and customer satisfaction. The feedback from
these three stakeholders is of the utmost importance to ensure that
Axactor is delivering on its ambitions and promises.
The overall results from the surveys listed below gives Axactor
confidence that the commitment to ethical debt collection is visible
both externally and internally. Axactor also positively notes the
development year-over-year, where the Group has improved on
all KPIs from overall already satisfactory levels. Axactor aims to
remain at stable high levels in 2023 (and beyond).
Aggregated group score
Development
last yearKPIs 2022 2021 2019
1
Debtor satisfaction 4.56 4.53 - +0.03
Customer satisfaction
((Net Promoter Score (“NPS”))
62.0 50.3 37.6
1
+11.7
Employee satisfaction (%) 73 72 67
1
+1
1
Surveys measuring the customer- and employee satisfaction were not conducted in 2020 due
to Covid-19. The method measuring employee satisfaction was changed for 2021 onwards
Debtor satisfaction
The debtor satisfaction survey is conducted via phone after the
debtor has been talking with a collection advisor. The survey is
100% automized with no human interaction from Axactor’s side.
The debtor is asked three questions related to the service provided
in the previous call and is asked to rate Axactor’s services on a
scale from one to five, where five is the highest score. Throughout
2022 all countries have remained stable at high levels. Axactor also
monitors complaints received to Axactor directly or through local
supervisory authorities to ensure adherence to its business practice
principles. The results will in turn be used to improve Axactor’s debt
collection services. Axactor is committed to continue providing
excellent service to all debtors.
Customer satisfaction
The customer satisfaction survey is a valuable measurement of the
satisfaction from executives at Axactor’s customers. In addition
to this annual survey, Axactor measures customers’ satisfaction
on a more regular basis through other local initiatives. The NPS
is a proxy for measuring a combination of the customer’s loyalty
and satisfaction with the Axactor brand. The NPS ranges on a
scale from -100 to +100. A score above zero is positive, and a
score of 50 or more is excellent. When comparing the results
for Axactor to statistics from the supplier, the results show that
Axactor has enthusiastic customers across all markets, which is an
important step towards the Group’s vision of becoming the industry
benchmark.
Employee satisfaction
To measure employees’ satisfaction, Axactor has over the last two
years coupled with Great Place to Work. In 2022, Axactor managed
to certify five out of six countries as a “Great Place to Work”.
Over-all, the level of employee satisfaction is high throughout the
organization, and importantly, on an aggregated Group level the
score has improved since last year. Read more about the results of
the employee satisfaction survey below, under People.
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Operational KPIs
To trace performance and adherence to its business practice
principles over time, Axactor also measures on specific operational
KPIs. In understanding its adherence to these principles, Axactor
has identified the following KPIs: Inbound service level and
nuisance rate (outbound) for phone collection, quality of payment
agreements (payer-to-payer ratio), and use of digital self-service
solutions. Axactor is performing at stable high levels and aims to
continue this trend going into 2023. The use of digital self-service
is on the rise, in all markets, and expected to further increase as
markets mature.
Aggregated group score
KPI
Target
(%)
2022
(%)
2021
(%)
2020
(%)
Inbound service level 95 96.90 97.70 95.67
Nuisance rate (outbound) <1 0.40 0.48 0.65
Payer-to-payer ratio - 74.39 75.80 74.20
Average number
of logins per month
Development
last year
(%)KPI
2022
(#)
2021
(#)
Log-ins debtor portal 9,804 7,775 26
Phone collection
Axactor has an obligation not only to its investors, customers,
and employees, but also to society and most importantly to each
individual debtor. To ensure that Axactor meets its obligations,
Axactor has set group-wide targets for its contact centers on
inbound service level and nuisance rate.
The inbound service level measures Axactor’s availability to
debtors proactively trying to get in touch with Axactor by phone.
Where a debtor reaches out to find solutions to get out of debt, it
is Axactor’s responsibility to be available to assist. In view of this,
Axactor has defined a group-wide target to achieve an average
service level of answering 95% of all incoming calls to the contact
centers. Additionally, all contact centers have an automatic call-
back function, to call back all debtors who does not get through to
the collection advisors - to ensure that all debtors are serviced even
where incoming calls are lost.
The second measurement is the nuisance rate (calls lost when
performing outbound calling activities). Axactor shall have a
cautious and conscious approach to its outbound collection
activities and shall have available collection advisors to answer the
debtors when the predictive dialers call the debtors. The overall
target is that the abandoned call rate should not exceed 1%.
Continued investments in state-of-the-art contact center technology
and the resource capacity-planning, ensured that Axactor delivered
ahead of the internal targets in 2022.
Payer-to-payer ratio
Another important KPI is the quality of payment agreements and
how sustainable the agreements are for the individual debtor. The
payer-to-payer ratio measures how many of the debtors that paid
the previous month and paid the following month. This is a good
measurement over time to ensure that payment agreements are
not made on terms that are not possible to fulfil.
The payer-to-payer ratio has gradually improved over the previous
years and have stabilized at a satisfactory high level. It shows that
Axactor’s investments in training and education of employees
continues to yield positive results.
Digital collection
Axactor has debtor portals in place for all markets to ensure
efficiency and availability for the debtors. Offering digital payment
solutions enables more efficient settlements, with the ability to
settle debt being available 24/7. Investing in digital services are also
well aligned with the Group’s sustainability ambitions, giving the
debtors’ freedom of choice in their dialogue with Axactor, as well as
being less resource intensive, something that supports the Group’s
goals to reduce its environmental footprint. In 2022, Axactor also
launched a chat solution in Norway, Sweden and Finland offering
an additional communication channel to ease the debtors’ ability to
get into contact with Axactor.
The use of the debtor portals continued to increase with 26% during
2022 compared to 2021, and a continued increase is expected in
2023. In addition to the self-service portals, a payment solution
called QuickPay is offered in all six markets. This is an easy-to-use
payment channel where payment information in the official
correspondence from Axactor may be used to pay outstanding
debt.
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Personalized collection through use of advanced analytics
In 2022, Axactor continued the use of advanced analytics and
business intelligence to build predictable scorecards for more
efficient collections and fairer debtor treatment. By the end of
the year, machine learning models are incorporated into daily
operations in all countries. A minimum of three machine learning
models are in production in each geography, supporting operations
and valuation. Using insights from the machine learning models,
Axactor has successfully improved collection efficiency, whilst at
the same time been able to take educated and more personalized
approaches to each debtor. By analyzing each debtor’s situation
and adapting the collection process thereafter, Axactor ensures
that that the collection activities do not cause undue pressure or
unnecessary inconvenience to the debtors.
Continued learning and development
Employees are also provided with training that gives them the
tools with which they can give customers and debtors a positive
experience, for instance through in-depth knowledge of the
relevant collection processes they work with, and comprehensive
communication training. Employees are also offered various
e-learning courses throughout the year, some of which are
mandatory. Read more about this below under People.
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Sustainable value chains
Ethical debt collection is also about the value chain of debt
collection and ensuring that customers, debt portfolio sellers, and
vendors used by Axactor, are acting responsibly and in compliance
with applicable laws, and adheres to internationally recognized
environmental, social, and corporate governance standards.
Axactor works to ensure that the selection of its partners is based
on transparent and objective criteria, free from personal interests.
Contracts shall contain warranties of compliance to relevant laws,
regulations and business practice principles, hereunder ethical
obligations. Axactor is committed to responsible product offering,
which includes regular reviews of vendors and partners, with a
specific focus on social risks and impacts – especially given the
nature of the industry in which Axactor operates.
Responsible investments
Axactor’s strategy is to purchase non-performing unsecured
consumer debt mainly originated from loans and credits provided
from regulated banks and financial institutions. The sellers are
chosen primarily due to the quality of the claims, as the sellers
are operating under strict regulations and supervision from
authorities. This way, Axactor limits the risk of purchasing, and
collecting on debt not in accordance with its ethical and business
practice requirements. A “know-your-counterparty” (“KYC”) check
shall always be conducted before entering a contract. Axactor
shall not purchase portfolios from sellers that represents an
unacceptable reputational or compliance risk. Information on good
debt collection practices, requirements to the collection process
related to information, transparency, guidance, interest rates etc.
are investigated during any due diligence, to verify adherence to
good debt collection practices throughout any prior debt collection
process. Management shall ensure responsible investments,
and no portfolios which include use of unethical lending terms,
aggressive sales methods, or which does not meet the Group’s
ethical standards shall be purchased.
Responsible product offering
Axactor has structured procurement processes and sourcing
strategies in place to ensure that the services and goods acquired
are aligned with ethical business practice principles and of high
quality. In 2022 Axactor reviewed and updated its group-wide
procurement procedures, adapting them to meet the future
expectations of its stakeholders. Axactor shall continue to ensure
that suppliers both directly and indirectly involved in the debt
collection process, ranging from field collectors to facility cleaning
service providers, commit to Axactor’s Supplier Code of Conduct.
Additionally, specific requirements are in place for certain suppliers,
i.e., requirements for technical or organizational measures to be
applied for those suppliers that process personal data on behalf of
Axactor, or that the Group only engage collection agents through
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the acknowledged organization LIC, when performing international
collection. Axactor shall during the contractual period review the
quality and quantity of goods or services received regularly, to verify
that the suppliers deliver according to what has been invoiced.
Similarly, as with Axactor’s investments, Axactor shall also
perform KYC checks of potential customers. Customers who
represent an unacceptable reputational or compliance risk
shall not be accepted. Axactor has in place mutual contractual
obligations relating to ethics and compliance requirements with
its customers. Information on good debt collection practices,
requirements to the collection process related to information,
transparency, guidance, interest rates etc. are provided to the
customers to ensure compliance and high quality throughout the
debt collection process. Axactor also perform regular reviews and
audits of its customers. If weaknesses or errors are discovered
in the customer’s process, advice and instructions are given
promptly to the relevant customer, to always ensure good debt
collection practices are followed. Oppositely, Axactor’s customers
also perform regular audits and reviews of Axactor’s operations,
to ensure that Axactor is compliant with their contractual
commitments, regulatory obligations, and the advertised business
practice principles.
In most countries, Axactor is subject to supervision by the
authorities, which oversees Axactor’s regulatory compliance, as
further outlined in the Corporate governance report on page 56,
and the Board of Directors’ report on page 45, of the Annual report
2022.
Complaints and deviation management
To deliver on its ambitions, Axactor needs to ensure continuous
improvement in all aspects of its business. Therefore, Axactor has
continued to invest in efficient complaints handling during the year,
in particular by the implementation of a new group-wide complaints
and deviations management system, launched in January 2023,
and replace the previous country-specific solutions. This system
shall help the Group to identify opportunities for improvement
of processes, ensuring compliance to policies and procedures,
eliminate the root cause of complaints and deviations to stop
problems from happening again, avoid losses and extra cost by
discovering deviations at an early stage, and eventually improve
the company image, as well as employee, debtor, and customer’
satisfaction.
Through the existing debtor complaints processes, only a limited
number of complaints were received during 2022, and none were
considered critical. All complaints were handled in accordance with
applicable local procedures; investigated, answered, errors (if any)
corrected, reported, and filed.
Whistleblowing
Axactor also has an independent whistleblower channel open
to anyone that wishes to report censurable, illegal, or unethical
conduct by Axactor or any of its employees or representatives.
The channel allows for reporting 24/7 at various levels – including
directly to external counsel. The whistleblowing channel is easily
accessible through the Group’s website, the “intranet”, and through
a link in the Code of Conduct and the Supplier Code of Conduct.
The channel handles reported cases in local language with
integrity, respect, and confidentiality, also ensuring the protection
of anyone reporting in good faith. Full anonymity is offered if opted
for allowing users to engage in written dialogue and exchanging
information without losing their anonymity. Whistleblower reports
are processed in accordance with the company’s procedures and
in compliance with applicable data privacy regulations. The Board
is informed of all cases reported, the types of misconduct and
measures taken.
In 2022 Axactor updated its whistleblower procedures, to align
with new regulatory requirements, and the portal to improve
visibility and control. During the year, a limited number of reports
were submitted. Five reports were rejected as groundless from a
whistleblower perspective and followed up by human resources.
One case was resolved through labor court procedures. Another
related to collection advisors claiming discrimination in the internal
case distribution process and performance evaluation process.
Restricted access to internal communication channels has been
questioned in one report. One sexual harassment incident was
also reported. One report registered was a continuation of a closed
whistleblower report from 2021. No material breaches have been
identified through the investigations, but some recommendations
for improvements to operational procedures made to i.e. increase
objectivity and transparency in the case distribution processes. One
employee got a warrant notice. All reports submitted have been
followed up in line with protocol, appropriately investigated and
improvements proposed based on the findings.
No. of whistleblower reports
2022 2021 2020
Group total 10 5 6
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Data privacy
Axactor is committed to respecting the right to privacy of all
individuals whose data is being processed by or on behalf of
Axactor – acting in compliance with all applicable data privacy
regulations in the jurisdictions in which it operates. Different types
of personal data are processed in different ways and situations,
depending on whether a person is the representative of a customer,
vendor or public authority, debtor, employee, job applicant, visitor,
etc. A robust data privacy framework is required when handling
vast amounts of data, including sensitive data related to individual’s
financial and, in many cases, vulnerable situations. Protecting
the fundamental rights and dignity of all data subjects of which
Axactor process personal data, is of the utmost importance to
Axactor, and codified in the Group data protection policy, as
approved by the Board. Appropriate technical and organizational
measures are implemented in accordance with the GDPR and local
data protection laws, as well as requiring the same of vendors
processing data on behalf of Axactor.
No. of inquiries from
the data supervisory
authority
No. of data breaches
reported to the data
supervisory authority
No. of fines or
corrections by the data
supervisory authority
2022 2021 2022 2021 2022 2021
Group total 11 12 5 7 0 0
During 2022 Axactor has updated various data privacy related
procedures and processes, to ensure that they remain relevant
and updated taking into consideration regulatory developments
and heightened expectations from stakeholders, including data
subjects and data supervisory authorities. The Group has also
established a common group-wide reporting tool to ensure better
alignment between the various countries in reporting on inquiries
from the data supervisory authorities, breaches, and administrative
fines. There were no major breaches during the year, and Axactor
has not been subject to any administrative fines by any of the data
supervisory authorities in the jurisdictions where it operates.
Information security
As a listed company and with great respect for the trust given by
partners and investors, Axactor also place significant focus on
safeguarding confidential information and trade secrets to which
Axactor has access. The IT and information security policy sets out
detailed procedures and clear roles and responsibilities applicable
for all employees within the Group and is approved by the Board
annually. The information security procedures below have also
been reviewed and where necessary updated. The group CISO,
the security committees, and the data protection officers, monitor
risks, govern compliance, manage incidents and government data
requests, and report on a regular basis to management and the
Board.
• IT information assets inventory
• Backup
• Secure software development
• Remote access
• Best practice guidelines for IT & information security
• Data encryption and communication
• Access control and administration
• Security incident
• Antivirus security
• Information classification
• Vulnerability management
• Data migration
Building a good security culture requires continuous work through
regular improvements, trainings, and awareness campaigns. In
2022 Axactor continued its investments in cyber- and information
security, by various initiatives and trainings. In addition to the
regular awareness trainings, the Group also performed several
waves of extensive phishing campaigns and penetration testing
through external vendors. The results show good improvements
in all countries, in particular with regards to the reporting rate for
suspicious emails, where the rate of reported emails has doubled
since last year. Axactor is very satisfied with this result, and it gives
a comforting affirmation that the Group is steadily improving.
In 2022, internal audit has also audited the physical security of
several locations, and certain improvements have been made in
line with the recommendations. Axactor is continuously adapting
its information security measures to the risk picture present at all
times.
On the more technical side, Axactor also implemented full network
segmentation across the Group’s IT infrastructure during the
first half of 2022, in order to improve control over network traffic,
optimize performance, and most importantly to reduce risk and
potential consequences of generalized malware attacks.
Preventing financial crime and corruption
Each year, millions of transactions pass through Axactor, which
entails an inherent risk for financial crime. Axactor is committed to
comply with all applicable laws and regulations to combat fraud,
anti-money laundering, bribery, and corruption in the jurisdictions
in which Axactor operates, and to prevent Axactor from being used
for any illegal activity. This also includes complying with all relevant
trade sanctions regulations. Axactor has a zero-tolerance attitude.
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Non-compliance with policies to prevent financial crime may
result in criminal or civil penalties which will vary according to the
offence. Axactor prohibits facilitation payments, kickbacks, or other
improper payment for any reason.
Employees are not permitted to give or receive any gifts or other
benefits that endanger any decision-making process, which should
be based on sound financial principles and/or strategic decisions.
Legitimate charitable contributions may be given, but adequate
measures shall be taken to prevent misuse before entering into
such agreements. All donation requires approval from the Group
management. Charitable contributions to political parties shall
never be approved, and no such contributions have been made
during the lifetime of Axactor. This also precludes Axactor’s
engagement in political lobbying. Axactor has strict rules for
cash management and accounting. No invoices, customer, or
vendor who lack documented legal foundation shall be approved.
Cash payments should be avoided, and when exceptionally used,
strict procedures must be followed. Axactor has detailed policies
regulating different preventing and mitigating actions. These Board
approved policies are updated annually to reflect the risks identified
through the annual risk assessments.
During the year, Axactor has further simplified its legal and
ownership structure to increase transparency, i.e., by finalizing the
liquidation of the Baltic entities and merging of two Norwegian legal
entities. Additionally, the overall structure remains subject to further
review and simplifications where possible, in 2023. Axactor has
also codified its tax policy into an independent instrument, which
has been approved by the Board. Axactor shall be a responsible
taxpayer. This is recognized by the tax policy, which establishes
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a clear and robust Group approach based on openness and
transparency in tax reporting and compliance.
Axactor regularly evaluate systems, internal control mechanisms
and procedures, to ensure that they are effective and efficient. In
addition, appropriate measures are taken to correct any identified
deficiencies. All transactions must be executed in accordance
with management’s general or specific authorization. Accurate
books and records that fairly document all financial transactions,
risk assessments and due diligence shall be maintained and
available in case of audits. Financial authorities across the
jurisdictions in which Axactor operates are interested in Axactor’s
efforts to combat financial crime, and Axactor has an open and
active dialogue with the regulators. Employees are encouraged
to report of any suspicions of violations through one of the many
reporting channels. Axactor is committed to follow up all reports of
suspicious acts and take appropriate action.
During the last three years, including 2022, there have been no
cases of confirmed fraud and/or corruption within the Group.
No. of reported whistleblower
cases regarding fraud and/or
corruption
No. of confirmed cases of fraud
and/corruption which have been
reported to the authorities
2022 2021 2020 2022 2021 2020
Group total 0 0 0 0 0 0
Part of the internal audit work is to provide the Board with
reasonable assurance that controls are present and functioning,
also from a fraud prevention perspective. Internal audit has during
the year had focus on risk of misuse of funds and evaluation of
the internal control structure, by evaluating the transactions in the
collection system vs. accounting, auditing the payment process,
audit of NPL portfolio post-sale implementation, physical security,
evaluation of AML processes and procedures and follow-up on
observations from 2021. The results of the internal audits are
reported to the Board, which also follows up on any risks identified
to ensure appropriate management and mitigation. No material
findings were reported by Group internal audit in 2022.
Corporate citizenship
Part of Axactor’s strategy is to be close to the community where
it operates, where the country organizations are the hub of the
customer relationships, based on knowing local regulations and
market conditions for customers and debtors.
In addition to its economic and financial responsibilities towards
its investors, Axactor also recognizes its social, cultural, and
environmental responsibility in the local communities where
it operates. Empowering the local organizations to adapt an
interactional approach to corporate citizenship, based on mutual
trust and transparency. The goal is to produce higher standards
of living and quality of life for the communities that surrounds
them. Axactor believes that this cannot be achieved strictly by
transactional contributions. Success requires proximity, expertise,
and local engagement.
Even more so now, than in the last decade, the above holds true.
In the aftermaths of the Covid-19 pandemic and Russia’s full-
scale invasion and war of aggression against Ukraine, geopolitical
instability has caused shortage of goods and inflation rates to
rise across the globe. Because of this, the communities in which
Axactor operates have also seen rising interest costs and spikes
in unemployment rates furthering already prevalent economic
challenges.
In a time where local communities need to rebuild their economies,
Axactor’s mission has become even more relevant. Axactor’s
purpose is to help people and companies to a better future, not
only by ensuring that they get paid, but also by being an aid to
the companies and people with financial difficulties, offering
sustainable solutions.
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People
The positive operational results would not have been possible without the dedication of Axactor’s
employees, acting passionately, proactively and with integrity. Axactor’s strategy is clear. “PEOPLE”
– the employees – is one of Axactor’s pivotal pillars on the path towards meeting its financial goals.
Axactor aims to meet its financial goals and at the same time be perceived as an employer who
“walk the talk” and live its values – trust, passion and proactive.
With the expertise and dedication of its employees, Axactor can
meet all stakeholder’s expectations. Axactor strives to ensure
that it remains an attractive workplace for its 1,458 employees
by providing a healthy work environment with meaningful work
through fostering a culture that empowers everyone to learn and
grow. Clear expectations are set for all leaders to act as role models
promoting the core values, and inspiring employees to succeed
by working with dedication. Everyone that come into contact with
Axactor shall be treated with trust and respect and provided with
professional and ethical advice based on their individual situation.
The positive feedback received in the employee satisfaction survey
shows that Axactor’s dedication to its employees yields results.
At Axactor, responsible business conduct has always been at the
core of its operations. Strategic goals, policies and procedures
coupled to recruiting, development and succession of employees
are issued at Group level. Ability to act in accordance with these
principles combined with understanding and managing the
risk of human rights impacts, regulations related to labour law,
work environment and collective bargaining agreements, are
fundamental preconditions for Axactor’s operations.
The Group has always respected internationally recognized human
rights and rights at work, which are reflected in our various policies
and the Code of Conduct. This includes commitment to comply
with the ten principles of the UN Global Compact, actively support
the UN Sustainable Development Goal #5 and #8, as well as the
Norwegian Transparency Act. The ongoing proposals regarding
mandatory environmental and human rights due diligence
legislation from the European Union and the proactiveness of
the Norwegian legislator are welcomed developments. Axactor’s
activities do not cause, contribute, or is linked to adverse impacts to
any individuals’ fundamental rights.
Considering the Norwegian Transparency Act, Axactor has
established a separate Human Rights policy, codifying these
commitments to ease interested parties’ ability to educate
themselves on human rights at Axactor. Axactor requires its
UN Sustainable
Development Goal #8
Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all
Why is this important?
Sense of achievement and contribution to a bigger whole are
fundamental to many individuals’ well-being. Contributing to decent
work for all individuals regardless of any variable that adds to their
uniqueness is a strategic focus at Axactor.
The benefits of a diverse and inclusive workplace are manyfold,
not least to business performance.
UN Sustainable
Development Goal #5
Achieve gender equality and empower all women and girls
Why is this important?
Gender equality at all levels in the organization is pivotal to Axactor’s
working environment, corporate culture, skill set, decision-making, as
well as debtor and customer service.
The benefits of a conscious gender balance throughout the
organization adds indisputable value, and Axactor aims to have a
gender balance in all managerial teams, within a range of 40%–60%.
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suppliers to comply with human rights through the Supplier code
of conduct. A dedicated email address to which interested parties
may ask questions about how Axactor addresses actual and
potential impacts on fundamental human rights has been created.
Diversity
Axactor rejects all forms of discrimination in hiring and employment.
At Axactor, diversity is not simply a matter of complying with
legal requirements. Axactor believes that the strength lies in
the differences between the employees, which is one of the key
factors to the Group’s success. Their varied skills, perspectives
and experiences form the basis of innovation and help Axactor to
better understand the needs of customers and debtors. Axactor is
committed to treat everyone equally and with respect, regardless
of gender, nationality, disability, marital status, religion, or sexual
orientation, and are committed to equal opportunities for all
employees. Employees are encouraged to voice their opinions or
concerns when something is not right or does not feel right. Different
opinions shall always be respected, and people are encouraged to
question the decisions of others. The Ethical council, management
at group and local level as well as the Board, discuss measures to
further these objectives. The employees have through the employee
satisfaction survey confirmed that they are treated fairly, regardless
of their age, race or ethnic origin, gender, and sexual orientation.
Axactor will not rest on its laurels and will continue ensuring a
respectful and inclusive culture also in the future.
Axactor has a strong spread between employees’ age, skills, gender,
cultural backgrounds, and perspectives. A variety of languages are
spoken which eases communication and the ability to assist many
debtors. Axactor strives for objectivity in its recruitment process. Job
listings for vacant positions shall be written in an inclusive manner.
Job opportunities are offered to individuals with disabilities. In 2022,
9 employees equal to 1.3% of Axactor’s employees in Spain were
employees with a disability grade of more than 33% and 7% in Italy
were employees with a disability grade of more than 46%. All offices
are universally designed to accommodate employees with disabilities.
Age distribution Group total
Number of employees per age
0
50
100
150
200
250
300
65+60-6455-5950-5445-4940-4435-3930-3425-2920-2415-19
2022 2021
2020
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Hiring students provides young academics access to relevant
work experience and increases employment in groups that find
themselves on the outside of today’s labour market. By end of 2022,
75 employees in Axactor were under the age of 24 years, an increase
of 41% compared to 2021. Axactor offers students different job
training opportunities in all countries where it operates, full-time as an
internship or part-time besides studying. Several students are offered
jobs at Axactor, while others gain a valuable experience for their CVs.
Axactor facilitates for older employees to stay in work-life also
after retirement age. This retains important competence within
the company. Older employees educate youngers with their
experiences and younger employees contributes with fresh
perspectives and drives innovation. Social aspects of keeping
employees in active work should not be underestimated. Measures
vary between countries, but includes the possibility of reduced
working hours, extra holidays, and adjusted work tasks. Out of
Axactor’s 1,458 employees, 42 are over the age of 60 years, an
increase of 31% from 2021.
Gender equality
In 2022 the overall gender balance improved to 65% women and
35% men, despite hiring 54% more women. Due to the nature of
Axactor’s operations, a higher female ratio is expected.
Axactor aims to have an even gender balance in all managerial
levels, where genders are represented within a range of 40%–60%.
To increase efficiency, Axactor implemented several organizational
changes in 2022. A benchmark comparing the local organizations
was conducted to identify best practices and potential performance
improvements. The total number of employees increased
Gender balance, management
%
0 20 40 60 80 100
Other management
levels
Country
management
2
Country
managers
1
Group executive
management
1
Board of Directors
Women
Men
Target
40
50
33
37
56
60
50
67
63
44
2022 2021 2020
Level Headcount Women (%) Men (%) Headcount Women (%) Men (%) Headcount Women (%) Men (%)
Board of Directors 5 40 60 6 50 50 7 43 57
Group executive
management
1
6 33 67 12 42 58 13 31 69
Country managers
1
6 50 50 - - - - - -
Country management
2
30 37 63 39 41 59 43 37 63
Other management levels 162 56 44 160 57 43 - - -
All Group employees 1,458 65 35 1,243 66 34 1,235 65 35
1
Group executive management include country managers for the year 2021 and 2020, but not for 2022
2
Country management does not include country managers who are reported on separately
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year-over-year with 17% including 461 new hires and 150 new
employees from the acquisition of Credit Recovery Services S.R.L.
At the same time the numbers of leaders are stable promoting a
leaner organization. The increased employee versus leader ratio
was enabled by extensive focus on leadership development over
the course of 2022, with particular focus on middle-management.
The employee satisfaction survey points toward a successful
re-organization, with employees reporting increased satisfaction
in their relations with management, their job, and their colleagues.
The gender balance managerial ratio of 43% women and 57% men
is still within the overall target, but not for the Group executive
management with 33% women (stable from 2021), nor for the
country management teams having 37% women (a reduction from
41% compared to the previous year).
Axactor is continuously working to achieve a more balanced
gender distribution across all levels and functions, through focus
on encouraging, developing, and promoting women into leadership
positions. Measures includes requirement for female candidates in
all recruitment processes, performance management, leadership
development, mentorship, role models and work-life balance
initiatives to accommodate for staying in work life. In Spain, this
has resulted in 10 women being promoted internally to leadership
positions.
Axactor is working systematically to ensure equal pay for equal work
or equal valued work, and to rectify unwanted pay gaps between
women and men. An extensive mapping of remuneration for all
employees at all levels has been conducted in all countries and
corrective measures implemented where appropriate. Leaders are
requested to ensure fair and equal pay, and to raise awareness and
ensure that correct salary levels are set. To support identification
of comparable roles, competences, and expectations, the job
framework is continuously developed. The result after this year’s
wage settlement shows an overall fairer balance but should still be
improved as the gender pay-gap in several areas, though to a lower
extent, favours men. The annual base salaries pay-gap difference
has decreased to -27% overall, compared to -28% in 2021.
Base salary pay-gap
2022 2021 2020
Norway incl. HQ -28 -26 -
Sweden -23 -16 -
Finland -24 -30 -
Germany -16 -24 -
Italy -45 -46 -
Spain -25 -28 -
Group total country average -27 -28 -
Base salary pay-gap managerial level
2022 2021 2020
Board of Directors -29 -19 -
Group executive management -16 -19 -22
Country managers (CM) -22 -18 -18
Country management (excl. CM) -14 -18 -
All other managers -20 -24 -
The overall pay-gap difference is due to the largest group of
employees being collection advisors with lower salary levels
consisting of more women than men. More women than men work
more part-time, which also affects the comparable salary. Market
price for specialist roles explains other differences. Salary levels
cannot be raised just to equal out historical differences. Managerial
positions have higher salaries and consist of more men. As an
example, in Italy the salary gap is of -45% in favour of men. The
country management team consist of 6 men and 1 woman. 72%
of the employees overall are women, mainly working as collection
advisors and mostly part-time. If country management is excluded
from the analysis, the pay gap is fairer, at -5.9%.
Gender balance country level
2022 2021 2020
Country Headcount Women (%) Men (%) Headcount Women (%) Men (%) Headcount Women (%) Men (%)
Norway incl. HQ 114 51 49 130 53 47 136 54 46
Sweden 50 70 30 70 71 29 48 65 35
Finland 47 68 32 48 67 33 63 76 24
Germany 190 65 35 183 67 33 225 66 34
Italy 304 72 28 120 80 20 123 76 24
Spain 753 65 35 692 65 35 640 64 36
Group total 1,458 65 35 1,243 66 34 1,235 65 35
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The work to further reduce the gender pay-gap will continue. The
above-mentioned initiatives to improve gender balance is expected
to affect the gender pay-gap positively. Certain work-life balance
initiatives to retain and attract women to managerial position may
however have an opposite effect. Axactor will continue to comply
with the collective bargaining agreements, but challenge principles of
fixed percentage for salary increases as it worsens already identified
differences. In Spain, 68% of the salary increase in this year’s wage
settlement were given to women, resulting in an improved gender
pay-gap of base salaries from -28% to -25%. Additional initiatives
include ensuring awareness among all leaders, improve processes
for salary adjustment, automatizing reporting and connecting local
payroll systems to the centralized reporting system.
Remuneration and benefits
The main purpose of the company’s remuneration is to encourage
a strong and sustainable performance-based culture which
supports growth in shareholder value over time, based on
responsible business practices and aligned with company values.
The remuneration must be aligned with efficient and responsible
risk management, Axactor’s values and applicable regulations. The
targets set must motivate responsible operations and business
conducted in an ethical, sustainable, environmentally, and socially
responsible manner, ensuring that good corporate governance
is practiced, and internationally recognized fundamental rights
principles are respected. Remuneration may differ based on
market, achievements, competences, abilities, and behaviour,
but shall never discriminate on gender, sexual orientation, age,
ethnicity, religion, marital status, or any other identity. This is stated
in the Group’s remuneration policy, determined by the Board, and
approved by the general meeting available at www.axactor.com.
To attract and retain employees, Axactor offers competitive
employment terms in line with local market conditions. To avoid
bias and ensure fairness, the grand-father principle is applied
when setting or adjusting terms. Remuneration is adapted to
local market terms. Collective bargaining agreements are entered
in Sweden, Finland, Norway, Italy, and Spain covering 87% of all
employees. Employees in Germany have voluntarily chosen not to
sign up for such agreements. Axactor commits to the International
Labour Conventions on the freedom of association and the right to
collective bargaining among its employees. Axactor collaborates
well with the unions and facilitates their work by offering use of
Axactor’s offices and equipment for union-related work. Balancing
the improvement of benefits and working conditions for the
employees against the importance of having a sustainable and
competitive employer is challenging, both for the company as well
as for the unions’ representatives. The constructive discussions
and collaboration with the unions are important, and highly
appreciated.
Salary difference CEO vs. average base salary of all employees
2022
1
2021
2
2020
CEO salary in NOK 4,131,000 4,050,000 -
CEO salary comparable in EUR 380,052 405,000 -
Avarage all employees in EUR 31,143 37,434 -
Median base salary in EUR 20,893 24,000 -
Annual total compensation ratio 18.19 16.88 -
1
FX rates applied for 2022: NOK EUR: 0.092; SEK EUR: 0.089
2
FX rates applied for 2021: NOK EUR: 0.102; SEK EUR: 0.094
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Work-life balance
Axactor recognizes the importance of work-life balance, which
is supported through various initiatives, i.e., accommodating
for a substantial number of part-time employees. To Axactor’s
knowledge, all part-time work is voluntary and is largely related
to students working in combination with studies, employees with
reduced capacity, and mothers with younger children requesting
part-time work after maternity leave. In Italy, the amicable and
field collection advisors work part-time, 6 hours per day. This has
been part of a restructuring project since 2018, where the affected
employees voluntarily accepted the part time reduction. However,
in accordance with its commitment to the SDG #5, Axactor aims to
reduce part-time work. The form of employment is expected to be a
topic in appraisal talks. Leaders are encouraged to work with part-
time employees to find other accommodations that can contribute
to minimizing the need for part-time work. As an example,
to increase possibility of working full-time in Spain discount
agreements with day-care centres and nurseries are entered, shift
hours have been adapted, and more flexible working-hours given.
In Axactor, home-office is not offered as a general benefit. Although
efficient communication solutions are available, Axactor believes
that home-office disconnects one from the workplace and reduces
the facetime which creates the passion, good solutions through
discussions and knowledge sharing, innovation, compliance and
proactiveness driving the great results. For many, this also results
in a disproportionate work-life balance. Further it challenges
the responsibility for a healthy and safe work environment
mentally and physically, gender balance, leadership, and personal
development. Flexible solutions are offered on an individual level
when needed, considering work-tasks, responsibilities, personal
needs etc. However, it is noted through the feedback in the employee
satisfaction survey, exit-interviews, and dialogue with the unions that
more flexibility specifically through use of home-office is desired.
Holidays, sick-leave, parental leave, flexible working hours and other
forms of regulations of working hours follow regulations, collective
bargaining agreements and best practices in each country. Axactor
shall offer a working environment where it is possible to combine
work, career, family life and spare time. An important element is the
possibility to take parental leave. Norway and Sweden offer parental
leave benefits greater than the statutory requirement. The parental
leaves were taken without any restrictions or consequences for the
remuneration, benefits, or work tasks of the individual employee.
In Italy, parents are offered the possibility to work from home until
the first year of the child. Germany is offering a holiday entitlement
for its employees that higher than legally required and some days
Employees by form of employment
2022 2021 2020
Number Women (%) Men (%) Number Women (%) Men (%) Number Women (%) Men (%)
Regular employment
Full time 992 62 38 863 63 37 920 63 37
Part time 212 83 17 204 80 20 237 78 22
Temporary employment 254 66 34 176 63 38 78 - -
Group total 1,458 - - 1,243 - - 1,235 - -
Parental leave
2022 2021 2020
Country
Maternity leave
No. of women
No. of weeks of
maternity leave
Paternity leave
No. of men
No. of weeks of
paternity leave
Maternity leave
No. of women
No. of weeks of
maternity leave
Paternity leave
No. of men
No. of weeks of
paternity leave
Norway 10 266 5 70 9 223 3 25 -
Sweden 5 377 3 77 11 138 2 2 -
Finland 3 187 0 0 6 167 2 7 -
Germany 9 248 0 0 8 293 2 12 -
Italy 23 316 3 4 14 248 2 2 -
Spain 20 249 14 214 21 241 13 99 -
Group total 70 1,643 25 365 61 1,017 22 135 -
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of special leave for certain events in the employee´s personal
life. With reference to the statistics presented, Axactor considers
itself compliant with the reporting requirements pursuant to the
Norwegian Equality and Anti-Discrimination Act section 26.
Talent attraction and retention
It is important for Axactor to attract and retain skilled employees.
A professional recruitment process through different channels is
practised to be able to reach diversified types of candidates fit for
the different tasks. In 2022, Axactor recruited 461 new employees
in addition to internal mobility. Job vacancies are also advertised
internally as it is important for Axactor to invest in and develop
high-performing employees. Leaders encourage employees to
actively apply for new positions in the Group, and Axactor’s internal
mobility program helps to retain crucial expertise, promote Axactor’s
culture, and contribute to internal career development. Succession
planning is a key factor to ensure, identify, encourage, and develop
new leaders and specialists. The employees are the company’s best
ambassadors and a solid source of reference for new recruitments.
Team spirit, passion, proactivity, mutual trust and a respectful
attitude are cornerstones of the Group’s success. Management
shall lead by example. Workshops have been held in all
management teams clarifying expectations and what the values
and leadership principles mean in practice. One common HR
system is used cross the Group to monitor and ensure competence
development, performance management, appraisal talks, and
succession planning. In accordance with the performance
management process at Axactor, performance appraisals,
including the establishment of new development goals, are
conducted annually between all employees and their immediate
leaders. The completion rate of these performance reviews is close
to 100% at all levels of the organization. Employee’s motivation,
development and continuous feedback are also secured through
structured and regular “check-ins”. Thorough analysis and
continuous improvement of the different elements of the employee
journey at Axactor is conducted regularly to strengthen retention of
its valuable employees.
New recruitments incl. gender balance
2022 2021 2020
Country Headcount Women (%) Men (%) Headcount Women (%) Men (%) Headcount Women (%) Men (%)
Norway 18 44 56 27 48 52 - - -
Sweden 5 40 60 28 21 79 - - -
Finland 11 55 45 8 50 50 - - -
Germany 54 56 44 26 62 38 - - -
Italy 69 68 32 36 22 78 - - -
Spain 304 62 38 270 41 59 - - -
Group total employee average 461 54 46 395 40 60 - - -
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Despite these efforts, Axactor had a turnover rate in 2022 of 28%,
a decrease from 2021 of 31%, Axactor is continuously optimizing
its operations to keep the competitive advantage of cost leadership
and adapting the organization to operational needs. Due to reduced
numbers of portfolio purchases and 3PC volumes, automatization
of processes and reduction in SG&A, certain positions have been
downsized which explains the high turnover increase in Sweden
from 9% to 42%. Restructuring processes are performed in
compliance with local law and regulations and internal restructuring
procedures. For the voluntary leavers, main reasons given are lack
of home-office, salaries, and career development opportunities. In
addition, Axactor have several internship and temporary workers
who have not renewed, or gotten its engagement renewed and
some who have not successfully passed the trial period.
Competence development
Correct, easily accessible and comprehensible information is vital to
stay compliant and have efficient operations. Axactor is continuously
focusing on new and effective ways to communicate, learn and share
information to ensure that the right decisions are taken and that
employees continue to develop their competencies. All employees
have the right and obligation to perform training and competence
development. Axactor Academy, the Group’s centre for learning and
development, provides the organization with a streamlined structure
and a variety of courses to manage competence development
for all employees. In addition, Axactor motivates its employees to
prove their competences through certification, something i.e., most
collection advisors in Sweden have achieved.
All employees need to conduct mandatory trainings to secure
compliance to relevant laws and regulations such as debt collection
regulations, and financial regulations, anti-fraud and anti-corruption,
data privacy, information security, anti-money laundering and
terror financing and other business ethical standards. Employees
are also provided with training that gives them the tools with
which they can give customers or debtors a positive experience,
for instance through in-depth knowledge of the relevant collection
Employee turnover incl. gender balance
2022 2021 2020
Country Total (%) Women (%) Men (%) Total (%) Women (%) Men (%) Total (%) Women (%) Men (%)
Norway 27 33 20 28 27 28 16 - -
Sweden 42 40 46 9 16 5 22 - -
Finland 30 22 47 43 26 50 12 - -
Germany 25 22 33 32 48 24 10 - -
Italy 6 6 6 31 49 26 12 - -
Spain 35 33 38 33 42 28 10 - -
Group total 28 26 32 31 40 27 11 - -
1
Employee turnover refers to the proportion of permanent employees who have left the company during the year in relation to the number of employees by the beginning and end of the year including
voluntary turnover, retirement, death, dismissals, organizational changes, and efficiency
Total number of courses offered, and average training hours recorded per employee
2022 2021
Country No. of courses offered
Average time (h) spent
on training per employee No. of courses offered
Average time (h) spent
on training per employee
Norway 55 12.4 52 6.5
Sweden 42 5.4 57 18.0
Finland 84 23.6 49 6.8
Germany 73 14.1 70 9.6
Italy 127 10.3 101 19.8
Spain 64 6.0 129 16.3
Group total 289
1
8.46
2
338
1
14.2
2
1
Excluding duplicates for different language versions
2
Adjusted for number of employees per country
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processes they work with, and comprehensive communication
training. Statistics from number of e-learning courses offered
through the Group HR system and the time spent per employee on
e-learning courses are recorded. Competence development is also
offered through on-the-job-training, sharing of best practices and
knowledge, classroom training and mentorship programs. Learning
and development objectives for both leaders and employees are
linked to Group-wide organizational objectives and values.
Health and work environment
Axactor regularly addresses risks and opportunities related to
the workforce and discuss these with relevant stakeholders to
sustain a workplace that is healthy and safe – both physically and
psychologically. Axactor does not engage in and expressly prohibits
any kind of forced-, compulsory- or child labour in all its operations,
including those serviced by suppliers. A continuous trust-based
dialogue between leaders and their employees makes it possible to
detect early signs of poor health and to ensure the work situation
is sustainable in the long run. This is done systematically across
the Group through structured annual appraisal talks, anonymous
employee satisfaction surveys, and regular “check-ins”.
Working actively to facilitate a positive work environment, Axactor
encourages employees to be physically active and take care of
their health. Different local initiatives are promoted, i.e., initiatives to
facilitate cycling to work, sponsoring of health club memberships,
common training for groups of employees, physiotherapist
availability in the office on a regular basis, football games, culture
and value events dedicated to physical and mental health, in
addition to local health insurances and health checks.
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Axactor does not accept any form of sexual harassment. Specific
focus to raise awareness is given through i.e., the digital ethical
e-learning courses mandatory for all employees to conduct. Axactor
has received one whistle-blower report on an incident of sexual
harassment which resulted in a warning notice to the employee.
The employee suffering the insult was cared for and offered
appropriate assistance. The result from the employee satisfaction
survey confirms that this is not a challenge within Axactor.
No. of whistle-blower
reports concerning sexual
harassment
No. of reported cases
resulting in disciplinary and/or
criminal sanctions
2022 2021 2020 2022 2021 2020
Group total 1 0 0 1 0 0
All leaders have access to tools to be able to act upon early signs of
ill-health among employees and increase the work attendance rate
through proactive wellness initiatives. Furthermore, Axactor closely
monitors sick-leave trends, through local HR processes.
Sick-leave %
Country 2022 2021 2020
Norway 7.0 5.0 -
Sweden 5.7 3.2 -
Finland 4.8 - -
Germany 7.4 4.2 -
Italy 3.0 1.3 -
Spain 6.9 7.8 -
Group total 5.0 - -
Quality, health, and safety are integral aspects of Axactor’s
operations. Systems are in place to monitor and follow up
accidents and/or incidents. Axactor’s business is by nature
non-hazardous.
Employee satisfaction
Investing in the employees is key for Axactor’s success. 92.4% of
the employees in Axactor have given their feedback anonymously
on whether Axactor is a workplace where you trust the people
you work for, have pride in what you do, and enjoy the people
you work with. The feedback from the employees show that
Axactor is an effective, rational, and competent organization
with a clear strategy. The management set clear expectations
and the employees have high trust in management. There is an
open dialogue where straight answers are given. The systematic
work to develop the organization and culture has paid off with
improvements in several areas emphasized by the employees
in the 2022 survey. Leaders and employees are more involved in
decision making, achievements are celebrated more, investments
in facilities have contributed to a better work environment, it is easy
to be yourself in the workplace, and people are social and friendly,
treated fairly and you can count on your colleagues. Axactor has
worked systematically to develop its organization and culture,
and hard work pays off. Norway, Sweden, Finland, Germany, and
Italy renewed their certifications as a Great Place to Work. Spain
improved their result from last year.
Due to the change of company form from a European Company
(SE) to a public limited liability company (ASA), the European Works
Council was terminated. Different networking and affinity groups
across the organization, communication channels etc. are ensuring
the continuous involvement of and knowledge-sharing between the
employees cross the group.
Axactor will continue to build on their strengths going into the next
year and strives to continuously improve as an employer. Together
with its employees, each leader is obliged to plan how to improve
identified weaknesses within their respective departments, such as
No. of workplace injuries recorded No. of serious or fatal workplace injuries recorded No. of commuting injuries recorded
Country 2022 2021 2020 2022 2021 2020 2022 2021 2020
Norway 0 0 0 0 0 0 0 0 0
Sweden 0 0 0 0 0 0 0 0 0
Finland 0 0 0 0 0 0 0 0 1
Germany 1 0 0 0 0 0 5 0 0
Italy 0 0 0 0 0 0 4 1 0
Spain 3 0 0 0 0 0 14 13 7
Group total 4 0 0 0 0 0 23 14 8
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the need to review the way of communicating important issues and
changes. Progress shall be discussed regularly. Most people are
treated fairly, regardless of gender, age, race, ethnic origin, or sexual
orientation, but having zero tolerance for discrimination, Axactor
should not have any signs of discrimination. Further, not everyone
feels that Axactor is a psychologically and emotionally safe place
to work. This is not acceptable, and the reasons will be analyzed
further, and appropriate measures will be taken. The industry
Axactor operates within is demanding, especially for the collection
advisors having to manage difficult calls and debtors with different
destinies during a day. This is one of the reasons the Italian
operations in 2018 together with the employees decided to reduce
working hours to 6 hours a day. Higher salaries cannot be offered in
all instances, and alternative measures contributing to i.e., greater
work-life balance and other types of remuneration and benefits are
considered where feasible.
There is also a need to continue to focus on the purpose, making
everyone understand why they make a difference and increase
the pride each employee takes in their work. The people at
Axactor makes a difference by helping people and companies to
a better future. Not only by helping people pay their bills and make
sustainable payment plans to get out of debt, but by taking social
responsibility for their colleagues’ well-being and through local
engagement. In 2022, the local organizations have engaged in a
wide array of initiatives, including amongst others, supporting the
victims of the war in Ukraine, and collecting toys to children.
Survey score by country
Scale of 0-100%, share of respondents answering almost always,
or often true to 60 statements
+1%
0
20
40
60
80
100
TotalHQSwedenSpainNorwayItalyGermanyFinland
2022 2021
Certification limit
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Environment
Axactor shall have a cautious and conscious approach to its environmental impact, and the environmental
and climate impact from business operations is of ever-increasing importance for stakeholders and society.
Axactor’s operations are by nature low-polluting and relatively harmless to the environment. At the same
time, Axactor recognizes that the responsibility to combat climate change is shared, and the company
has since its foundation worked actively to minimize its environmental footprint. Axactor’s environmental
commitments follows from its environmental policy, which is adopted annually by the Board. The principles
set out in the environmental policy are also reflected throughout the corporate governance structure, and
relevant Group policies.
Axactor’s risk management system requires the group to identify,
assess and document environmental risks and opportunities.
An environmental risk assessment is conducted annually with
high risks expected to be mitigated through the ordinary risk
management process, and opportunities are elevated to the Group
executive management for further evaluation. Additionally, an
internal climate risk assessment of Axactor’s locations have been
conducted, showing limited climate-related risks associated with
its locations. This risk is further mitigated in the aftermath of the
Covid-19 pandemic, learning from the experiences and emergency
preparedness capacities, i.e., with respect to the ability to leverage
home office solutions if necessary.
Measures
During 2022, Axactor has had significant group-wide awareness
campaigns, addressing environmental issues and the Group’s
impact in this respect. With the improvement of the Group’s GHG
inventory all countries have been actively involved in the collection
of activity data, and in determining better ways of measuring and
calculating their emissions.
With the updating of the Group’s procurement routines, increased
emphasis has been put on making sure that services and
goods acquired are provided from suppliers with acceptable
environmental standards. Axactor shall aim to only use products
and services that represent the lowest total impact on the
environment. Axactor further ensures its suppliers’ commitments
to its environmental expectations, through the prerequisite to
sign Axactor’s Supplier code of conduct. Axactor anticipates that
environmental considerations will be subject to closer scrutiny in
the years to come, especially as the market matures with respect to
associated reporting requirements and stakeholder expectations.
UN Sustainable
Development Goal #13
Take urgent action to combat climate change and its impacts
Why is this important?
Axactor’s business is low-polluting, and not associated with
any significant environmental impact. Despite this, Axactor
recognizes that climate change is one of the biggest challenges
of our generation. In recognition of this, Axactor actively takes
steps towards reducing its operational emissions and promoting
environmentally friendly behavior amongst employees.
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Axactor is well prepared when this happens, both as provider of
services, and as a purchaser.
In addition to the group-wide initiatives, there has also been
several local initiatives, aimed at raising awareness and reducing
emissions, i.e., through reducing paper and plastic, improved
recycling, etc.
GHG inventory
Global trends and initiatives are driving actions towards better
accountability and transparency on greenhouse gas (GHG)
emissions, together with increased climate ambition towards
reaching a low carbon future. As reported on last year, Axactor
recognizes the need to improve its practices on emissions’ data
collection and reporting as an important first step towards having a
high-quality GHG inventory that could trigger strategies for climate
action with a clear understanding of the main sources and issues to
be addressed, and the best mitigations available.
Together with climate mitigation consultants, Axactor has spent
the year developing an inventory tool for Axactor’s scope 1, 2 and
3 GHG emissions in accordance with the GHG Protocol Corporate
Standard requirements. The inventory is developed following an
operational control approach, which estimates GHG emissions
coming from operated assets. The results are provided by business
unit, specific GHGs (CO
2
e, CO
2
, CH
4
, N
2
O, HFCs, PFCs, SF6 and
NF3) and over time. Values are reported in CO
2
equivalents.
Emissions
Compared to previous years, the total emissions show a significant
increase during 2022, because the reporting from previous years
were limited to the data available at the time. With the improved
inventory, Axactor has sought to cover all relevant emissions
associated with its operations. Where no data has been available
for specific activities, emissions have been conservatively
estimated. In 2023, Axactor will continue working on improving
the quality of the data and try to obtain data where estimations
have previously been necessary. In terms of absolute emissions,
Axactor expects that comparability to peers will increase in the
years to come once the various upcoming sustainability reporting
regulations enter into force.
Category
% of total
emissions
(2022)
2022
(tCO
2
e)
2021
1
(tCO
2
e)
2021
1
(tCO
2
e)
Scope 1 15 368.5 240.2 203.9
Scope 2 11 269.1 467.2 291.2
Scope 3 75 1882.1 144.0 175.3
Total emissions (1-2-3) 100 2519.7 851.5 670.5
1
Emissions for full year 2021 and 2020 only cover company cars (scope 1), electricity usage
(scope 2) and flights and hotels nights (scope 3)
Axactor’s emissions in Scope 1 and 2 are primarily from company
cars, and electricity and heating/cooling purchases in Axactor’s
offices. Axactor has limited use of company cars and incentivizes
the choice of low emission vehicles. It is mandatory to select
models/specifications that have a lower-than-average fuel
consumption and emission for its class, according to the World
Light Vehicle Test Procedures (“WLTP”), however it is strongly
encouraged to choose an electrical vehicle. Axactor aims to use
renewable energy where possible, and 100% of the power usage
from the Group’s common IT infrastructure provider is guaranteed
renewable energy. Several of Axactor’s offices are also set up with
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district heating, that further reduces the need to use electricity for
heating. All Axactor offices have systems for smart controlling and
monitoring of ventilation, heating/cooling, and lights. No relocations
or reconstruction of existing offices shall lead to higher energy
consumption per square meter.
The biggest part of Axactor’s emissions is found in Scope 3,
which is indirect emissions linked to the activities of Axactor. As
a service company, Axactor purchases goods needed in office
spaces, receives and sends significant number of letters, and
generates waste. Its employees are travelling on business trips
and commuting to work. Further, the emission split per country
shows expected coherence in terms of size of operations and
geographical location. Axactor has invested in efficient tele-/video
conferencing equipment, strives to lower the travel ratio and aims
to choose less emission intensive travels where possible. Axactor
also works actively to identify and utilize opportunities to reduce the
use of paper through opportunities for electronic communication,
as opposed to physical letters etc. within its room of possibility
pursuant to legal requirements in the countries where Axactor
operates.
Reducing emissions
The work that Axactor has done during the year is an important
step towards understanding its impact on the environment, and
necessary preparations to start addressing climate reduction in
its own operations. By having a comprehensive GHG inventory in
place, Axactor has laid the foundation to implement an ambitious
emissions reduction strategy, and to keep meeting the future
expectations of both its stakeholders, and society.
Axactor’s vision to become the industry benchmark not only
stipulates that the Group needs to meet its financial targets, but
just as much delivering on this through sustainable economic
growth. True to this vision, Axactor aims to formulate a plan to
reduce emissions linked to its operations significantly by 2035.
During 2023, Axactor will continue working with climate mitigation
consultants to formulate a strategy and a plan to achieve this goal,
and to set specific emission reduction targets, including by way of
science-based targets.
Emission split per country and scope – absolute amount
tCO
2
e
0
500
1,000
1,500
2,000
2,500
3,000
TotalHQSwedenSpainNorwayItalyGermanyFinland
Scope 1 Scope 2
Scope 3
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Group executive management
Johnny Tsolis
Chief Executive Officer
Mr. Tsolis is a co-founder of Axactor and has previously held positions
as Chief Financial Officer and Chief of Strategy & Projects within the
company. He has vast industry experience having worked several years
as a management consultant focusing on PMI/cost, productivity
improvement, post-merger acquisition processes, funding, corporate
finance, and M&A. He also has extensive international experience
managing projects abroad, primarily in the US and Europe. Prior
to joining Axactor, his work experience includes positions as a
partner in Cardo Partners AS, a partner in DHT Corporate Services,
Handelsbanken Capital Markets, and Arkwright.
Mr. Tsolis holds a «Siviløkonom» degree in Economics and Business
Administration from the Norwegian Business School, BI.
Nina Mortensen
Chief Financial Officer
Ms. Mortensen has extensive experience in financial governance
and transformations, financial operations, managing IPOs and M&A
processes. She has held several financial leadership positions within
TietoEVRY, among others interim CFO for the EVRY group and Head
of Corporate Controlling and Finance Operations. She also has several
years’ experience from Audit & Assurance within Deloitte.
Ms. Mortensen holds a «Siviløkonom» degree in Economics and
Business Administration from the Norwegian School of Economics
(NHH). She is also a certified public accountant (CPA) from the
Norwegian Business School, BI.
Arnt André Dullum
Chief Operating Officer
Mr. Dullum has broad operational and management experience
within credit management services across Europe. He was previously
responsible for the operational and compliance team within the
Norwegian organization, and is now responsible for Operations, IT
and Data & Analytics for the Axactor Group. Prior to joining Axactor,
he held multiple roles in the Lindorff Group within operations, project
management and finance. The international experience includes longer
periods as an expatriate working out of Spain and the Netherlands,
and multiple projects within M&A, greenfield start-ups, offshoring- and
efficiency improvement projects.
Mr. Dullum holds a bachelor’s degree from BI Norwegian Business
School (BI) and an MBA from Norwegian School of Economics (NHH).
He is also a certified Project Management Professional (PMP®)
certified by the Project Management Institute (PMI) and has a
personal debt collection license authorized by the Norwegian Financial
Supervisory Authority (FSA).
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Vibeke Ly
Chief of Staff
Ms. Ly is responsible for corporate legal affairs, compliance,
sustainability, internal audit, HR, and marketing & communications.
She has broad experiences in building solid risk management and
corporate governance structures, driving sustainability initiatives,
managing IPOs and M&A processes, contract management and data
privacy. Prior to joining Axactor, she served as a group corporate
lawyer and compliance officer in Intrum group, Lindorff group and
EVRY group, as an associate in the Norwegian law firm Grette, and as
a legal advisor in the Justice Department.
Ms. Ly holds a Master of Laws from the University of Oslo (UiO), in
addition to international law from Université libre de Bruxelles (ULB),
and law and prosecution rights from University of Bergen (UiB).
Kyrre Svae
Chief of Strategy and IR
Mr. Svae has extensive experience from working as a management
consultant focusing on strategy development, operational
improvement, and M&A. He also previously held the position as Interim
CFO of Axactor. His former work experience includes positions as
founder and managing partner of Breidablikk Consulting AS, and as a
partner in Cardo Partners AS.
Mr. Svae holds an MSc from Copenhagen Business School, with part
of the degree from Harvard University and China Europe Int. Business
School.
Robin Knowles
Chief Investment Officer
Mr. Knowles has broad industry experience across Europe, including
positions in Lindorff Group, Aktiv Kapital (PRA), Cabot Financial, and
Morgan Stanley. His former work experience includes investment
banking with Barclays Bank and container shipping with P&O Nedlloyd.
Mr. Knowles holds a bachelor’s degree from the University of Plymouth
and is a qualified accountant with Chartered Institute of Management
Accountants (CIMA).
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Board of Directors
Kristian Melhuus
Chair
Member of the Remuneration Committee and the Investment
Committee.
Mr. Kristian Melhuus is partner in Sandwater AS, an impact venture
capital fund and deputy chair of the Board of Mowi ASA. Before
partnering up with Sandwater he held the position as director
of Seatankers Management Norway AS, Investment Director in
HitecVision, CFO/COO of Liquid Barcodes and analyst at ABG Sundal
Collier.
Mr. Melhuus holds an MSc in Industrial Economics and Technology
Management from the Norwegian University of Science and
Technology (NTNU), and has also studied Finance, Derivatives, and
Econometrics at the University of Karlsruhe.
Kathrine Astrup Fredriksen
Board member
Ms. Kathrine Astrup Fredriksen is currently employed by Seatankers
Services (UK) LLP working closely with its investment advisory
company. She serves as a member of the board of SFL Corporation
Ltd, of MOWI AS, Avance Gas and Norwegian property ASA.
Fredriksen’s previous directorships include Seadrill Ltd, Frontline Ltd
and Golar LNG.
Ms. Fredriksen was educated at the European Business School in
London.
Brita Eilertsen
Board member
Chair of the Investment Committee and Chair of the Audit Committee.
Ms. Brita Eilertsen has vast experience from investment banking
and consulting institutions like SEB Enskilda, Orkla Finans and
Touche Ross Mgmt Consultants (Deloitte). She has held various
board positions for several listed and private companies in different
industries since 2005. Current directorships outside Axactor are
Pareto Bank, Klaveness Combination Carriers ASA, Novelda ASA and C
WorldWide.
Previous directorships last five years outside Axactor are NRC Group,
Unifor, Next Biometrics, Anders Jahres Fond til vitenskapens fremme
and Fjord1 ASA.
Ms. Eilertsen holds a «Siviløkonom» degree in Economics and
Business Administration from the Norwegian School of Economics
(NHH) and is a Certified Financial Analyst (AFA).
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Terje Mjøs
Board member
Member of the Audit Committee and Chair of the Remuneration
Committee.
Mr. Terje Mjøs has broad operational experience as former CEO of
Visolit AS, EVRY ASA and ErgoGroup AS, from senior positions in Hydro
IS Partner AS and as a senior advisor to Apax Partners (private equity).
Previous directorships and senior management positions last five
years outside Axactor is Solid Media Group (Chair) and Visolit group
(CEO and Board member in several of their companies).
Mr. Mjøs has a Cand. Scient. Degree in Computer Science from
the University of Oslo, and an MBA in Economics and Business
Administration from Norwegian Business School BI.
Lars Erich Nilsen
Board member
Member of the Investment Committee.
Mr. Lars Erich Nilsen is the Managing Director and the Chair of the
Board of Seatankers Management Norway AS. He is a portfolio
manager with experience as investment and equity analyst from
Fearnley Advisors AS and Fearnley Securities AS.
Current directorships and senior management positions outside
Axactor are Norwegian Property ASA (Board member), Bulk
Infrastructure Holding AS (Board member) and FP Bolig Holding AS
(Board member).
Previous directorships and senior management positions last five
years outside Axactor is Seatankers Management Norway AS
(Chairman and CEO).
Mr. Nilsen holds a «Siviløkonom» degree in Economics and Business
Administration from the Norwegian Business School, BI.
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Board of Directors’ report
1. Market development
The market for sale of non-performing loans remained at a high
level throughout 2022. Volumes that were withheld during the
Covid-19 pandemic were put up for sale, and consumer lending
increased. Although there has definitely been competition in
the bidding processes, the substantial volumes available meant
that Axactor was able to acquire new NPL portfolios for close to
EUR 300 million at accretive IRR levels in 2022.
The 3PC market varied more between geographies in 2022.
In Spain, the market for servicing unsecured claims has been
characterized by consolidation in the banking industry, meaning
volumes have been temporarily kept from the market or
re-distributed. As a counter measure, Axactor has built a team to
service secured claims, where competition has been less fierce. In
Italy, the market remained quite active, with the addition of Credit
Recovery Service to the Axactor family contributing positively to the
market position. In Germany and the Nordic markets, the activity
has been lower, as banks have preferred to offload debt from their
balance sheets as opposed to outsource servicing.
Looking ahead, the increased interest rates, and thus funding cost
for the industry, are expected to improve the market prices for
NPL portfolios, to Axactor’s benefit. Adding an expected increase
in default rates following the worsened macroeconomic climate,
2023 is poised to be a buyer’s market. The uncertainty lies first and
foremost in how long it will take before prices adjust enough to fully
offset the increased funding cost. There is a risk that there will be
a hiatus of a few months where buyers and sellers will struggle to
agree on prices. With increasing volumes and reduced prices, some
banks might opt for outsourcing rather than portfolio sales. This
means the market outlook for the 3PC segment is positive as well.
2. Strategy
Axactor was incepted on the notion that the debt collection industry
was inefficient. As a young challenger without legacy, Axactor could
disrupt the market in terms of cost-to-collect. This remains the
Group’s key competitive advantage today.
Axactor continue to invest in data driven operations. Through
advanced analytics and business intelligence, resources can be
directed to the cases where the likelihood of payment is highest. At
the same time, efforts to collect where the likelihood of payment
is low can be avoided. This saves time and money for the front
offices, as well as reducing the burden on the debtors. Further
development of machine learning capabilities will remain a key
focus area going forward.
There are two main segments in Axactor’s product portfolio:
acquisition of non-performing loans (NPL) and third-party debt
collection services (3PC). By combining the two product offerings,
Axactor both diversifies its income stream and leverages synergies
Total income per country
%
17%
15%
7%
12%
38%
12%
Norway
Sweden
Spain
Italy
Germany
Finland
NPL book value per country
%
29%
19%
14%
16%
12%
10%
Norway
Sweden
Spain
Italy
Germany
Finland
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between the business segments in terms of business origination,
collection execution and data generation. In addition, the combined
product offering improves scale benefits for both business
segments.
The business strategy entails a narrow focus on the core
competence of Axactor: fresh unsecured consumer debt originated
within the regulated financial sector in carefully selected markets.
Axactor performs debt collection services well suited for the typical
size and complexity of these claims. Furthermore, this segment is
perceived by Axactor as having the best risk/reward relationship.
To maximize profits, Axactor focuses primarily on this core
competence.
Having dedicated and motivated employees with great industry
knowledge is crucial to deliver on the strategy. To attract, retain
and develop the best talents, attention is directed towards making
Axactor an attractive employer with career opportunities. The
Axactor Academy program offers a wide variety of courses to
increase the employees’ skill sets. Promising talents are given
the opportunity to participate in a mentorship program, where
senior staff members provide personal guidance and learning
opportunities for the participants. These initiatives are in place to
enable the desired performance culture that characterizes Axactor.
To enable the employees to achieve their potential, they need
efficient tools to perform their work. Axactor has had a clear
strategy from day one of having modern, standardized and efficient
common IT solutions for the Group. As a young company with
limited legacy, Axactor has had the opportunity to design and build
its IT environment from scratch. The result is an IT platform with
low maintenance cost combined with a high level of efficiency and
security.
Another important benefit of having common systems and setup
on both the IT and the organizational side, is improved cross-border
cooperation. It eases communication between countries, which in
turn enables sharing of best practices and innovations.
Cyber security is continuously growing in importance. A benefit
of Axactor’s strategy is that the modern and streamlined IT
environment by default is up to the best current security standards.
Working with large amounts of personal data, the employees
of Axactor have a continuous focus on cyber security in their
everyday operations. Training sessions and stress tests are
performed on a running basis to be prepared for potential attacks.
A major milestone in the cyber security work in 2022 was the
implementation of a full network segmentation. This means that
in the event hostile individuals should succeed in breaking in, the
amount of information at stake would be limited.
Axactor strives to be a transparent, reliable and trustworthy
company with focus on fair treatment of debtors, clients and
employees alike. As a part of this ambition, Axactor has joined
the United Nations Global Compact and adheres to the United
Nations sustainable development goals with specific focus on 5
Gender equality, 8 Decent work and economic growth, 13 Climate
action and 16 Peace, justice and strong institutions. This ambition
is inherent in Axactor’s DNA and affects all parts of the Group’s
business and decisions. Axactor sees working in a sustainable
matter as an obvious goal in itself, and it is also an increasingly
important factor for banks and financial institutions when they
select their business partners.
The debt collection industry has been criticized for being difficult
to interpret from an investor perspective. As a response, Axactor
is striving to disclose more information and key performance
indicators through the notes in the financial statements, in
publicly available presentations, and through educational videos
on www.axactor.com. Through being transparent, Axactor hope to
both earn trust from investors, and to push the whole industry into
becoming more transparent and open.
Axactor was founded during a time of historically high NPL prices.
This means the back book has a lower average gross IRR than
some competitors. In 2022, Axactor lifted the profitability on the
total NPL book substantially, through EUR 288 million of accretive
investments. The average gross IRR for all portfolios owned has
increased to 17.3% at the end of 2022. This compares to 15.7%
at the end of 2020, and 16.3% at the end of 2021. The uplift is the
result of sticking to the strategy of well-known debt from reliable
sellers, and a strict price discipline. Accretive investments remain
an important factor for Axactor to further increase profitability
going forward.
With an established skilled, scalable, lean, and passionate
organization, Axactor is well positioned to continue the growth
journey. To deliver profitable growth, Axactor will continue to
improve operational performance, show investment discipline, and
grow the capital light part of the business. The Group will further
intensify the investor relations work with banks, bond market, equity
market and other sources of capital. Finally, Axactor will continue
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to pursue fair debtor treatment, high customer satisfaction and
dedicated and motivated employees.
3. Operations
Both the non-performing loans (NPL) and third-party collection
(3PC) business segments had solid collections and great cost
control in 2022, resulting in the highest EBITDA in the history of
Axactor.
The NPL portfolio investments were consistent throughout the
year, and ended at EUR 288.1 million for 2022. Together with NPL
portfolios of EUR 1,095.8 million going into the year, the operational
units had large volumes to process through both amicable and
legal actions during the year. In total, Axactor had close to 1.4
million NPL cases under management per the end of 2022. The
NPL performance was close to 100% for the year. Gross revenue
for the NPL segment increased from EUR 258.0 million in 2021 to
EUR 281.0 million for the year.
In 2022, the whole organization has focused on maintaining a high
loyalty rate on existing payment plans and setting up new payment
plans on claims with no prior agreements. Through this approach,
Axactor saw a positive development in the number of paying cases
in the NPL segment across all countries. The focus on sustainable
payment plans is a key strategy in achieving Axactor’s purpose
of helping people and companies to a better future. In total, the
average number of paying cases per month increased more than
9% from 2021 to 2022.
The 3PC segment achieved a total income growth of 13% in 2022,
ending at EUR 55.8 million. The main growth drivers were increased
income from existing clients in Spain, and the acquisition of Credit
Recovery Service (CRS) in Italy. The CRS acquisition was closed in
January 2022 and marked a substantial improvement of Axactor’s
3PC servicing capabilities in Italy. With efficient operations and
a solid base of banks and financial institutions as clients, all 3PC
clients in Italy are now serviced through the CRS platform to
achieve scale advantages and increased collection efficiency. The
organic 3PC growth in Spain was driven by exceptional results in
benchmarking contests, where Axactor was rated as number one in
the majority of benchmarks.
During the year, a second German operational site was established
in Saarbrücken. The new contact center will run in parallel with the
existing center in Heidelberg, supporting future growth and vastly
improving Axactor’s servicing capabilities in the German market.
The debtor portal took big steps in 2022, becoming an easily
accessible platform for debtors in a cost-efficient manner. By
adding fully digital payment solutions for all countries, the number
of successful transactions through the portal increased by 10%
in 2022. The total number of debtors logging in to the self-service
portal increased with 26% compared to 2021, as close to 10,000
debtors logged in every month. Live chat functionality has also
been enabled to give debtors more contact opportunities, and
simultaneously increase cost efficiency.
In 2022, Axactor completed an innovation project, delivering a
cloud-based enterprise data warehouse, an insight and analytical
framework and new digital solutions. The project has enabled
reliable group-wide analytics across all Axactor markets, providing
a competitive advantage. The project got financial support
from the Norwegian state as an approved SkatteFUNN project.
Axactor launched a major ramp-up of the advanced analytics
team during 2022 to utilize the results of the project. The ramp-up
has supported more ambitious targets for improving collection
strategies, and as a result increased efficiency for the collection
processes. By year-end Axactor reached a new milestone with
machine learning models being incorporated into the daily
operations for all countries of operations. Axactor now has
machine learning models to support key decision points throughout
the lifecycle of a claim.
Through a combination of efficiency measures, Axactor was able to
reach an industry leading NPL Cost-to-collect ratio of 39% for 2022,
a 5 percentage point improvement from 2021. This was possible
through a combination of efficient processes, the skills and
competence of the employees, and strong analytical capabilities, as
well as a series of restructuring initiatives.
2022 was a year with multiple initiatives to strengthen information
security. Axactor successfully implemented full network
segmentation across the complete IT infrastructure in the first half
of 2022. This was a major step to improve the security layer and
reduce the risk and consequences of a potential malicious malware
strike against the company. In addition, several enhancements
were implemented towards end-users. From technical solutions
to discover vulnerabilities, detection and alert towards threats
and malware, to mobile device management and multifactor
authentication. This implementation was in combination with
several digital nano learning courses and physical training covering
security and GDPR related topics for employees.
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Results from simulated phishing campaigns in 2022 show higher
awareness and understanding of cybersecurity threats among
all employees. The work to raise awareness will continue to be a
part of the information security exercises and planning. Axactor
was faced with one incident in relation to security where an
internal employee was victim of a phishing attempt related to the
Office365 platform. The attempt was promptly mitigated, and no
consequences or data leakage were identified.
To ensure continued growth in the 3PC segment, Axactor always
strives to maintain good client relationships. The results from
the annual customer satisfaction survey for 2022 conclude that
the customers are very satisfied with Axactor’s services and
deliverables in all six countries, with an overall net promoter score
(NPS) of 62.
The positive operational results in 2022 would not have been
feasible without the dedication of Axactor’s employees, acting
passionately, proactively and with integrity. Investing in competent
high-performing employees is key for Axactor’s success. Axactor
retained its Great Place To Work certification for 2022 in Finland,
Germany, Italy, Norway and Sweden, while the results in Spain
edged closer to the level required for certification.
4. Corporate social responsibility
The objective of Axactor is to create and perform sound,
sustainable, responsible and competitive business conduct –
creating long-term value and returns for our stakeholders. To
effectively achieve such objectives and to have a well-run business,
effective corporate governance is indispensable. This means
that Axactor shall comply with all applicable laws and regulations
in the jurisdictions in which it operates, as well as general rules
of ethical business conduct. Axactor is committed to creating
value in an ethical, sustainable, environmental, and socially
responsible manner, practice good corporate governance, and
respect internationally recognized human- and workers- rights.
To safeguard compliance and support the effectiveness of these
board level commitments, an open and ongoing dialogue on these
issues, shall be maintained.
The company has since 2021 been a signatory to the UN Global
Compact, supporting the UN Sustainable Development Goals,
placing specific focus on: 5. Gender equality; 8. Decent work and
economic growth; 13. Climate action; 16. Peace, justice and strong
institutions. Axactor’s values and corporate policies support these
goals. The sustainability report describes Axactor’s work on ESG,
including the company’s reviews of working environment, gender
equality, and the Group’s effects on its external environment.
5. Financial performance
Axactor’s operations is split into two business segments: NPL and
3PC. The portfolios of purchased real estate (REO) are in a run-off
mode and treated as discontinued operations effective from the
fiscal year 2022. Repossessed assets from Axactor’s secured NPL
portfolios are defined as a part of the continuing operations and
reported under the NPL segment. All comments and numbers in the
following text refer to continuing operations unless explicitly stated
otherwise. This also applies to figures for previous year.
Total income
Total income for 2022 ended at EUR 239.7 million, up from
EUR 158.3 million in 2021. The main driver for the increase was
increased collection on NPL portfolios, improved gross IRRs and
solid investment level during 2022. 2021 was also weighed down
by net negative revaluations of EUR 44.1 million, compared to net
negative revaluations of EUR 2.6 million in 2022.
Gross revenue from the NPL segment increased by 9% to EUR 281.0
million in 2022 (258.0). The growth is supported by improved
collection performance and significant investments in new NPL
portfolios during 2022. The NPL amortization rate fell from 41% in
2021 to 34% for the year 2022, contributing positively on the total
income development. Out of the 7 percentage point reduction,
approximately 2 percentage points relate to improved collection
performance, while the rest relates to improved average IRR and
timing of collections. 2021 was impacted by EUR 44.1 million in
Total income by segment
EUR million
0
50
100
150
200
250
2022202120202019
165
197
158
240
NPLPortfolios 3PC
Other/Not allocated
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net negative revaluations, compared to net negative revaluations of
EUR 2.6 million in 2022. NPL total income ended at EUR 183.8 million
for 2022 (108.6), representing 77% of the Group’s total income (69%).
Estimated remaining collection (ERC) on the NPL portfolios stood at
EUR 2,545.4 million at the end of 2022, an increase of 19% compared
to the end of 2021. Out of the total ERC, EUR 310.0 million is
expected to be collected in 2023.
Axactor invested EUR 288.1 million in new NPL portfolios in 2022,
up from EUR 114.0 million in 2021. The investments done in 2022
supports a solid profitable growth for 2023. In addition, a total
estimated EUR 68.1 million of investments are committed in signed
contracts for 2023 per the end of 2022. Axactor expects to deploy in
total EUR 100-150 million in NPL portfolios during 2023, including the
already committed amount.
Axactor continues to follow the established strategy with an
intensified focus on the core competence of the Group. This means a
strict capital discipline with investments directed at fresh unsecured
non-performing consumer loans from known sellers. This reduces
risk, leverages customer relationships in both the 3PC and NPL
segments, and ensures Axactor invests only in attractively priced
high-quality portfolios. The strategy is evidenced by a significantly
higher gross IRR on acquisitions in 2022 compared to the average
for the back book.
The 3PC business reported total income of EUR 55.8 million for 2022,
up 13% from 2021 (49.6). The main growth driver was the acquisition
of Credit Recovery Service (CRS) in Italy in January 2022. 3PC
continue to be an important business segment for Axactor, providing
a capital light income stream and providing important synergies with
the NPL segment. The 3PC total income corresponded to 23% of
total income for the Group in 2022 (31%).
Operating expenses
Total operating expenses for 2022 amounted to EUR 120.7 million
(117.8), excluding depreciation and amortization.
Personnel costs accounted for EUR 64.7 million in 2022 (61.3) and
is the single most important input factor in Axactor’s operations.
The increase is supported by higher number of FTEs, driven by the
acquisition of CRS, and the accretive investments made in 2022.
Cost of repossessed assets sold amounted to EUR 1.5 million,
compared to EUR 2.1 million in 2021.
Other expenses amounted to EUR 54.6 million (54.4), and is mainly
related to IT/ infrastructure costs and legal fees.
Contribution by segment
The total contribution margin amounted to EUR 161.5 million in
2022, up from EUR 85.1 million in 2021. The contribution margin
reflects the segments’ contribution to EBITDA, before local SG&A, IT
and corporate cost. Please see Note 5 for more details.
The contribution margin from the NPL segment was EUR 140.4
million in 2022 (69.7). The main driver for the increase in
profitability was improved collection performance and continued
strict cost control, as well as the large negative revaluations in
2021. The NPL contribution margin ended at 76% of total income,
up from 64% in 2021.
The contribution margin from 3PC was EUR 21.2 million (15.4),
corresponding to 38% of total income (31%). The margin in 2021
was impacted by costs related to a restructuring program. The
saving initiatives gained full effect in 2022, supporting the higher
margin.
Local SG&A, IT and corporate cost amounted to EUR 42.6 million
for 2022 (44.6).
EBITDA
EBITDA for 2022 ended at EUR 119.0 million, up from EUR 40.5
million in 2021. The increased profitability level is due to the growth
in total income, combined with strict cost control. The EBITDA
margin ended at 50% for the year (26%).
Cash EBITDA ended at EUR 218.1 million in 2022, up from
EUR 192.1 million in 2021.
0
20
40
60
80
100
120
2022202120202019
EBITDA and EBITDA margin
EUR million and %
119
88
52
40
50%
44%
32%
26%
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Operating profit (EBIT)
Some of the investments in the collection platforms during the
initial years of the Group’s history have been fully depreciated
or amortized. After some years of stabilizing investments,
depreciation and amortization – excluding amortization of NPL
portfolios – fell to EUR 8.9 million in 2022 (9.6).
Operating profit (EBIT) was hence EUR 110.1 million for 2022
(30.9).
Net financial items
Net financial items were negative EUR 55.9 million in 2022 (51.0),
comprising financial revenue of EUR 3.2 million (0.1) and financial
expenses of EUR 59.1 million (51.0).
Interest expenses on borrowings accounted for EUR 57.9 million in
2022, up from EUR 49.1 million in 2021. The increase is driven by
increased interest rates during second half of 2022 and a higher
debt level following the accretive investments made during the
year. Axactor increased the interest rate hedge ratio at the end of
2022, in order to reduce the financial expenses going into 2023.
Axactor has during 2022 purchased own outstanding bonds with
a total face value of EUR 49.5 million. The purchases were made
at prices significantly below par, resulting in a positive net gain of
EUR 2.3 million.
The net foreign exchange impact included in net financial items
for 2022 was positive EUR 0.6 million, compared to a net negative
impact in 2021 of EUR 1.5 million.
Discontinued operations
Discontinued operations is comprised of the portfolios of real
estate assets acquired during 2017 and 2018. It is the operating
segment formerly reported as REO, but excluding repossessed
assets from Axactor’s secured NPL portfolios. Total income for
the discontinued operations ended at EUR 14.1 million in 2022
(36.8). EBITDA ended at EUR -7.0 million (-16.8), including a EUR 0.8
million write-down of book values following the annual impairment
review (5.9). The net profit for 2022 ended at EUR -8.1 million
(-20.6).
Profits and tax
The profit before tax was EUR 54.2 million in 2022 (-20.1), and the
net profit was EUR 40.6 million (-25.4).
Axactor recorded a tax expense of EUR 13.5 million in 2022 (5.3),
resulting in an effective tax rate of 25% (-26%). Axactor expects
to trend towards a normalized average effective tax rate of
approximately 27% over time.
Including discontinued operations, the net profit for 2022 was
EUR 32.6 million, up from EUR -46.0 million in 2021.
The net profit attributable to shareholders was EUR 36.8 million for
2022 (-32.8), whereas the net profit to non-controlling interests was
EUR -4.2 million (-13.2).
Total comprehensive income was EUR 31.1 million for 2022
(-37.3), with the deviation from reported net profit/(loss) after tax
mainly explained by currency translation differences from foreign
operations and fair value changes on cash flow hedges. EUR 35.3
million of the total comprehensive income was attributable to
shareholders of the parent company (-24.1) and EUR -4.2 million to
non-controlling interests (-13.2).
Earnings per share totaled EUR 0.122 both on an ordinary and on a
diluted basis (-0.112).
Financial position
Total assets amounted to EUR 1,437.8 million at the end of 2022,
up from EUR 1,293.2 million at the end of 2021.
Total non-current assets amounted to EUR 1,350.4 million at
the end of 2022 (1,196.7), including purchased NPL portfolios of
EUR 1,252.6 million (1,095.8). Intangible assets accounted for
EUR 83.0 million (87.5) reflecting goodwill and other intangible
assets acquired since inception, as well as deferred tax assets of
EUR 5.4 million (13.7).
Return on equity to shareholders
%
-12
-8
-4
0
4
8
12
2022202120202019
ROE to shareholders
Continuing operations
-9%
-6%
6.0%
9%
10%
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Current assets amounted to EUR 74.7 million (96.5), including cash
and cash equivalents of EUR 29.0 million (38.2) and EUR 7.0 million
in restricted cash (5.8).
Assets classified as held for sale amounted to EUR 12.7 million at
the end of 2022.
Total interest-bearing debt stood at EUR 945.3 million at the end of
2022, up from EUR 838.3 million at the end of 2021. The increase in
interest-bearing debt is related to the investments in NPL portfolios
during 2022.
Total equity amounted to EUR 410.6 million (381.2), including
non-controlling interests of EUR -5.4 million (1.0). The equity ratio
was 29% at the end of 2022, same as at the end of 2021.
Supervision of financial reporting
As communicated in a press release on 13 December 2021,
Axactor ASA received a conclusion from the Norwegian Financial
Supervisory Authority (FSA) in accordance with the preliminary
conclusion as stated in the press release of 2 September 2021.
The conclusion imposed Axactor to change its future accounting
practice for subsequent measurement of expected credit losses
for acquired portfolios of non-performing loans (NPL) with effect
from the reporting of the annual accounts for the financial year
2022. The subsequent measurement shall apply current and future
macroeconomic factors as input and use more than one scenario.
Axactor has in 2022 implemented an expanded revaluation model
that applies current and future macroeconomic factors as input
and use of scenarios. For more information, please refer to note 4
to the consolidated financial statements.
6. Cash flow and financing
The following text regarding cash flow includes contribution from
both continuing and discontinued operations.
Net cash flow from operating activities, before NPL and REO
investments, amounted to EUR 220.0 million in 2022 (224.7). The
amount paid for NPL portfolios was EUR 290.8 million in 2022,
up from EUR 115.4 million in 2021. The difference between the
amount paid and total NPL investments for the year is related to
deferred payments on certain contracts. Including investments in
NPL portfolios, cash flow from operating activities was EUR -71.0
million (109.6). The difference between cash EBITDA and cash flow
from operating activities before NPL investments relates to taxes
paid of EUR 10.7 million (3.3) and a decrease in net working capital
excl. forward flow commitments of EUR 1.3 million (4.2).
Net cash outflow from investing activities was EUR 7.7 million in
2022 (4.7), whereof EUR 3.1 million was related to the acquisition
of CRS in Italy in January 2022. The remaining amount primarily
represents investments related to IT and infrastructure, and setting
up new office facilities in Spain and Germany.
Net cash flow from financing activities was EUR 75.9 million in
2022 (-112.4). Net proceeds from borrowings were EUR 132.1
million after debt repayments (-86.2). There were no new share
issues in 2022, while Axactor had EUR 49.3 million in net proceeds
from new share issues in 2021. Repayments to non-controlling
interests amounted to EUR 2.2 million for 2022 (6.6). Interest
payments, loan fees and lease payments represented a cash
outflow of EUR 53.9 million in 2022 (68.9).
Funding
Axactor has two sources of credit; bond loans and a revolving credit
facility from DNB and Nordea. All legal entities except Axactor ASA
and the Reolux structure are inside the ringfenced structure that
is funded by the revolving credit facility (RCF). The RCF matures
on 22 December 2023 and is classified as current interest-bearing
debt in the consolidated financial statement at the end of 2022.
The company expects the refinancing of the RCF to be completed
during the first half of 2023.
Axactor has two outstanding bonds loans; ACR02 and ACR03.
ACR02 is an unrated bond, with a carrying amount of EUR 170.6
million and a floating interest rate of EURIBOR +700bps. The
ACR03 is a rated bond with a carrying amount of EUR 279.1 million
and a floating interest rate of EURIBOR +535bps. The ACR02 bond
is maturing 12 January 2023, while the ACR03 bond is maturing
15 September 2026.
7. Reported alternative performance measures
Axactor uses alternative performance measures (APM) such
as gross revenue, EBITDA, cash EBITDA, estimated remaining
collection, net interest-bearing debt and return on equity, to better
reflect its operational business performance and to enhance
comparability between financial periods. These alternative
performance measures are reported in addition to, but not as a
substitute for, the performance measures reported in accordance
with IFRS. For definition and reconciliation tables of the used APMs,
see page 154.
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8. Proposed allocation of the company’s result
The parent company, Axactor ASA, had a net negative result after
tax of EUR 14.9 million in 2022, compared to negative EUR 16.4
million in 2021. The result available for disposal of the Annual
General Meeting is as follows:
EUR thousand
Distribution from other paid in capital 14,950
8. Statement on transparency
Axactor will publish its statement regarding the Norwegian
transparency act (“Åpenhetsloven”) on www.axactor.com no later
than 30 June, 2023.
9. Corporate Governance
The governance structure of Axactor ASA complies with Norwegian
corporate law and Norwegian securities legislation and stock
exchange regulations. The shares of Axactor are freely negotiable.
There are no restrictions on owning, trading, or voting for shares
in the Articles of Association. The shares in the company are
not subject to any transfer restrictions. The Board has approved
guidelines for good corporate governance in accordance with the
Norwegian Code of Practice for corporate governance issued by
the Norwegian Corporate Governance Board (NCGB and NUES),
last revised on 14 October 2021. Axactor is fully compliant with the
NUES recommendations. A detailed description of the corporate
governance principles and reporting for 2022 can be found in the
Corporate governance report.
Axactor has relevant group-wide insurance policies in place,
covering; general liability and professional indemnity, directors’
and officers’ insurance, crime, and cyber. The company’s directors’
and officers’ insurance covers the directors of the Board, the CEO,
and any employee acting in a managerial capacity which includes
wholly owned subsidiaries. Coverage does not include grossly
negligent or willful acts in which directors have obtained illegal
remuneration or acted for personal profit.
10. Risk review
Axactor’s regular business activities entail exposure to various
types of risk that separately, or in combination could affect its
operational and financial performance. Risk management is an
integral part of the Group’s business activities and decisions. The
Board has the overall responsibility to define expectations and
oversee the Group’s risk management, including monitoring key
risks and implementing mitigating actions as outlined below.
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Risk Description Mitigations
Strategic risks
Macroeconomic Lower disposable income for debtors, as a result of a worsened macroeconomic climate, might affect their ability to settle their debts. In the event
of postponed payments, the value is not necessarily lost, but realization of the value could be spread out over a longer period. Recent company
studies show limited correlations between macroeconomic factors and the likelihood of payment.
If debtors are unable to pay large settlements, they are guided to
entering longer installment plans.
Competitiveness Competitors may have or develop competitive advantages that the Group is unable to match. Additionally, the inability to enter new contracts,
inability to purchase portfolios at profitable prices, or acquisitions of portfolios based on incorrect assumptions, may adversely affect the Group’s
competitiveness. Reputational damage suffered due to unforeseen events may affect the ability to attract and retain customers, employees and
investors, or eligibility to purchase portfolios from favorable sellers. If these risks are to materialize the business and ability to implement the
business plan may be materially adversely affected.
The Group continuously works to improve collection and cost
efficiency through data driven operations, reduced funding
costs, improved procurement processes, as well as to focus on
employer branding.
Financial risks
Currency The Group reports figures, and has its majority of operations and borrowings, in EUR. The Group is exposed to NOK and SEK through borrowings
and operations in Norway and Sweden. Movements in these currency exchange rates could have an effect on the Group’s financial figures.
The Group aims to reduce currency risk by keeping interest-
bearing debt in the same currencies as the Group’s assets.
Interest rate The interest rate risk relates to the variable rates on the Group’s interest-bearing debt, which amounted to EUR 955.5 million per 31 December
2022. An annualized increase/decrease of 100 basis points would increase/ decrease profit before tax by EUR 4.0 million, given the debt and
hedging level at the end of 2022.
The Group has a strategy to hedge 50-70% of total outstanding
gross debt with a duration of three to five years. The strategy is
under implementation, and the Group has currently hedged 60%
of total outstanding gross debt, with a duration until December
15, 2023. Axactor is committed to the strategy and expects full
implementation over time.
Credit (not including NPLs) Counterparties under a financial or customer contract may be unable to meet their obligations towards Axactor, leading to a financial loss.
The Group is exposed to credit risk from its operating activities, primarily related to trade receivables and from its financing activities, including
deposits with banks.
Credit risk is managed subject to established policies, procedures
and controls relating to customer credit risk management.
The credit risk is not considered to be a material risk in Axactor.
Liquidity The Group has financial obligations in terms of NPL forward flow commitments, interest expenses on borrowings, running salary expenses
and external costs. If the cash inflow is not sufficient to support these obligations, there is a risk that the Group may be unable to meet them.
The liquidity level at the end of 2022 is perceived as satisfying.
The Group is maintaining a balance of financial assets and
unutilized credit lines to meet the cash requirements of its
operations and investments for the next 12-24 months.
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Risk Description Mitigations
Funding In the event that new credit is not possible to obtain, the Group’s growth potential could be adversely affected.
If the Group should fail to secure new funds or a re-financing of the current agreements before the maturity dates, there is a risk that the Group
could default on its debt obligations.
A default could also occur as a result of a significant drop in financial and/or operational performance, through the breach of covenants tied to the
credit facilities. Axactor complies with all loan covenants as per the end of 2022, and given the current financial position, cash flow projections and
investment outlook, the Board consider the headroom as satisfactory.
The Group diversifies its funding through two main sources of
credit: a revolving credit facility (RCF) and bond loans. The Group
aims to refinance credit lines well ahead of maturity.
Operational and financial performance is continuously monitored,
and covenant headroom is an important part of business
decisions.
Operational risks
Performance Weaknesses in operational processes, or application of the processes, could cause lower collection on own portfolios. Failure to employ and
retain skilled personnel is also likely to contribute to lower performance. The cumulated effects may have material adverse effects on the Group’s
performance.
The Group seeks to mitigate these risks through active employee
management, and frequent operational reviews. Additionally,
the Group is investing in technology to increase automation,
continuing to enhance its processes where possible.
IT and information security The Group faces risks related to IT stability, application availability, as well as information security and data processing. As the Group is dependent
on third-party outsourcing providers, there is also a risk associated with failure to maintain successful third-party relationships. The cumulated
consequences of which are difficult to concretize but can be severe if left unmitigated. Additionally, the Group has seen an increase in attempted
cyber- and phishing attacks recently, which can have adverse financial consequences if successful.
The Group seeks to mitigate these risks through partnerships
with certified infrastructure, hardware and software providers and
strict internal control including vendor management. Technical
mitigations such as network segmentation have also been
implemented, to reduce potential consequences of attempted
cyber- and phishing-attacks.
Regulatory Increased regulatory scrutiny and level of fines issued by the authorities continues to be a risk. This trend is coupled with more consumer-friendly
debt collection legislation and practices across the countries in which the Group operates, having various consequences such as lower (regulatory)
collection fees and more lenient debt forgiveness arrangements. Additionally, close attention is being paid to the stricter and more comprehensive
sustainability related disclosure- and reporting requirements. Failure to comply with applicable regulations in relevant jurisdictions may materially
adversely affect the financial position due to severe fines, or inability to operate due to loss of license in respective jurisdictions.
Mitigations include continuous monitoring of regulatory changes
both on an EU level and in the various jurisdictions in which the
Group operates, i.e., through dialogue with peers, regulators, and
participation in local debt collection associations. The Group’s
processes and compliance programs are also subject to regular
oversight through internal controls and internal audits. Relevant
trainings are frequently provided to employees at all levels
tailored to their roles and responsibilities.
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11. Going concern
Based on the review of Axactor ASA’s financial statement, the
Board of Directors confirms that the annual financial statements
for 2022 have been prepared on the basis of a going concern
assumption, and that this assumption has been made in
accordance with Section 3-3a of the Norwegian Accounting Act.
12. Outlook
The increasing interest rates and macroeconomic uncertainty will
have an impact on Axactor’s markets in the coming year. With
increasing funding costs for the industry, NPL prices must adjust
to compensate for the increased cost of capital. Axactor sees
indications that prices are already adjusting but expects there will
be a transition period in which sellers and buyers of NPL portfolios
will struggle to find common ground. Combined with an expected
increase in default rates, Axactor is confident that a new and fair
price level will be reached, but it might take some months to reach
this new equilibrium. As a response, Axactor expect to scale down
investments to EUR 100–150 million for 2023.
The NPL segment will nonetheless see significant revenue growth
in 2023 on the back of the high investment level in 2022. The
replacement capex for 2023 is estimated to be EUR 114 million, and
the estimated investment level is thus enough to secure a stable
NPL book value. Continued organic growth is expected for the 3PC
segment in 2023. The debt originators typically choose between
outsourcing or selling off their NPLs, and the servicing volume thus
depends on how quickly NPL prices adjust, and how determined
debt originators are to offload their balance sheets.
Axactor has two loan maturities in 2023 and 2024 respectively;
the RCF and the ACR02 bond. Negotiations to renew the RCF are
ongoing and expected to close during the first half of the year.
The high cash generation from Axactor’s operations will be used
to reduce leverage through 2023. Axactor remains opportunistic
regarding refinancing in the bond market if market conditions
improve, within the limits of the leverage ratio target of 3.5x or less at
the end of 2023.
In order to reduce financial expenses, Axactor has increased its
interest rate hedge position for 2023. Based on the current base
interest rates and keeping the gross debt level constant from the
end of 2022, the hedge position is expected to fully offset the
impact of increased base interest rates in the first quarter 2023.
However, the gross debt increased towards the end of the fourth
quarter, meaning the estimated average debt for the first quarter is
higher. Estimated interest expenses for the first quarter 2023 with
these assumptions is thus EUR 1.0 million higher than the prior
quarter. The sensitivity on interest expenses from a further one
percentage point increase in base interest rates is approximately
EUR 1.0 million per quarter.
Axactor’s operations saw limited impacts on collection from the
high inflation and increasing interest rates in 2022. There were some
indications in certain markets of fewer large one-off payments,
and debtors asking for longer payment plans with lower monthly
installments or payment deferrals towards the end of the year. Going
into 2023, bailiffs in several countries are reserving higher amounts
to cover debtors’ cost of living, meaning legal cash flow to creditors
will be somewhat reduced.
The executive management and Board continue to closely monitor the
general macroeconomic situation and its potential business impacts.
Oslo, 30 March 2023
Kristian Melhuus
Chair
Brita Eilertsen
Board member
Terje Mjøs
Board member
Lars Erich Nilsen
Board member
Kathrine Astrup
Fredriksen
Board member
Johnny Tsolis
CEO
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Corporate governance report
Axactor ASA is a Norwegian Public Limited Liability Company (Allmennaksjeselskap) listed on Oslo Børs
and bases its corporate governance structure on Norwegian legislation and recommended guidelines.
Axactor is committed to good corporate governance standards which contributes to optimizing the value
creation over time and strengthens the stakeholders’ trust and confidence in the company. The company’s
corporate governance framework regulates the division of roles, responsibilities and accountability between
shareholders, the Board, CEO, and the other members of the Group executive management, to ensure that
the company’s resources are applied in an efficient and sustainable manner.
The Board has the ultimate responsibility for ensuring that good corporate governance is practiced.
Confidence in Axactor and its business activities is essential for the Group’s competitiveness. Axactor
is committed to openness and transparency about its principles and procedures for how the Group is
managed.
1. Implementation and reporting on corporate governance
The company adheres to the Norwegian Code of Practice for
corporate governance (“Code”), last revised 14 October 2021,
issued by the Norwegian Corporate Governance Board (“NUES”).
The principles and implementation of corporate governance are
subject to annual reviews and discussions by the Board, last
revised and approved by the Board 15 December 2022. The current
corporate governance policy is available on the company’s website.
This report addresses Axactor’s main corporate governance
policies and practices and how Axactor has complied with the
Code in the preceding year. Application of the Code is based on
the “comply or explain” principle and any deviation from the Code
is explained under each item. By the company’s own assessment,
Axactor has not had any deviations from the Code during 2022 and
is fully compliant with all sections of the Code.
2. Business activity
The company’s business as set out in the articles of association
is: “to directly or indirectly through subsidiaries or investment
partnerships, conduct debt collection work, financial and
administrative services, legal services, invoicing services, debt
acquisition and other investment activities, as well as therewith
associated activities”.
To create value over time, the Board has developed clear
objectives, strategies, and a risk profile for the business. Axactor’s
commitment to sustainable development is codified in the quality
policy. The company will continue to pursue the following main
strategies to reach its overall objective:
• Being a profitable company with organic and sustainable growth
through targeted focus to becoming best at what we do within
current markets
• Invest in accretive portfolios with attractive gross IRR driving
margin expansion based on accountable investments
• Putting emphasis on loyal and satisfied customers within the
bank and finance sector through responsible product offering
• Being an innovative player with a strong cost culture to
achieve competitive advantages through cloud based unified
IT-infrastructure, optimized processes, and data-driven valuation
and -operation
• Being an attractive employer, with a focus on creating an
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environment for professional and personal growth, with respect
and regard for each employee
• Helping hard working companies get paid and debtors solving
their financial commitments through fair debt collection practices
A description of the key risk factors and risk management can be
found in the Board of Directors’ report on page 45.
During 2022, the company has reviewed its policies and procedures
providing business practice guidance on environmental, social and
governance matters including but not limited to human resources,
human rights, legal and compliance, data privacy, information
security, anti-money laundering, corporate social responsibility,
code of conduct and anti-fraud and anti-corruption. A separate
report on how these policies and procedures are integrated with the
company’s activities and how they relate to value creation for the
company’s stakeholders can be found in the sustainability report
integrated in the annual report 2022 page 13.
At the AGM on 21 April 2022, the general meeting resolved to
change the company form from a European SE-company (Societas
Europaea) to a Norwegian Public Limited Liability company (an
allmennaksjeselskap), in accordance with the proposal of the
Board. Consequently, certain changes were also made to the
company’s articles of association. For supplementary information,
see the minutes of the AGM held on 21 April 2022, and the
conversion proposal and report, available at www.axactor.com.
The company’s objectives, strategies and risk profile are subject to
regular review by the Board throughout the year.
Deviations from the Code: None
3. Equity and dividend
The Board aims to maintain a responsible equity ratio, considering
the company’s financial targets, strategy, and risk profile. This to
ensure that the company has an appropriate balance between
equity and other sources of financing.
On 31 December 2022, the Group had an equity ratio of 28.6%
and a debt-to-equity ratio of 2.5x. The Board considers the current
capital structure as appropriate.
The Board has committed a dividend policy forming the basis for
the Board’s proposals to the general meeting on cash dividend
payments or authorization for payment of dividend or share
buy-back programs on one or several occasions based on the
last audited financial accounts. Axactor targets a distribution to
its shareholders for a financial year of 20–50% of profit after tax
on a consolidated basis through either cash distribution or share
buy-back programs of treasury shares. Distributions through
dividends or share buy-back programs can only be initiated by
the Board based on an authorization from the general meeting
applicable for one or several occasions limited to the framework of
the latest annual report.
At the AGM on 21 April 2022, it was resolved to increase the share
capital of the company through a bonus issue in connection with
the change in company form, to reduce the number of decimals
in the company’s nominal share value, in accordance with the
proposal from the Board. Because of the change in company
form, cf. Section 2 above, the share capital of the company was
converted from EUR to NOK (Norwegian Kroner).
• The nominal value of issued shares was increased by
NOK 0.007037424125127 per share, in total NOK 2,126,325.78
• The bonus issue was carried out by transferring NOK 2,126,325.78
to the share capital from the unrestricted equity
• The company’s share capital was increased from
NOK 1,535,794,085.98 to NOK 1,537,920,411.76. This
resulted in an increase in the nominal share value from
NOK 5.082962575874870 to NOK 5.09
At the AGM on 21 April 2022, three authorizations to increase the
company’s share capital were granted to the Board:
• Authorization to increase the share capital by issuing new shares
with a total nominal value of up to NOK 153,792,041, equal to
30,214,546 shares, each with a nominal value of NOK 5.09 in
connection with acquisitions of assets within the company’s core
areas of expertise
• Authorization to increase the share capital by issuing new
shares or acquire own shares with a total nominal value of up to
NOK 27,995,000, equal to 5,500,000 shares, each with a nominal
value of NOK 5.09 in connection with the performance share
units allocated under LTI 2022 which is an incentive program for
the CEO, other members of the Group executive management
and key personnel
• Authorization to increase the share capital by issuing new
shares or acquire own shares with a total nominal value of up to
NOK 35,023,496, equal to 6,880,844 shares, each with a nominal
value of NOK 5.09 in connection with the share options allocated
under ESOP 2019 and ESOP 2020 (also named ESOP 2020-B)
which are incentive programs for the CEO, other members of the
Group executive management and key personnel
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All three authorizations are valid until the AGM in 2023, and
no later than 30 June 2023. As of 31 December 2022, neither
authorization have been used. There was a separate vote on each
of the authorizations. All three authorizations have a limited overall
amount by which the Board is permitted to increase the share
capital. For supplementary information, see the minutes of the
AGM held on 21 April 2022 available at www.axactor.com.
Deviations from the Code: None
4. Equal treatment of shareholders
The Board, CEO, and other members of the Group executive
management are committed to treat all shareholders equally, unless
there exists a factual basis for deviation from this principle, justified
by the common interests of the company and the shareholders.
In the event of a capital increase based on authorization from the
general meeting, where the pre-emptive rights of shareholders are
set aside, the company shall provide reasons for the action in the
stock exchange release in which the capital increase is announced.
Any transactions the company carries out in its own shares shall be
carried out either through the stock exchange or at prevailing stock
exchange prices. If there is limited liquidity in the company’s shares,
other ways to ensure equal treatment of all shareholders shall be
considered. There were no transactions in treasury shares in 2022.
The instruction issued by the Board states how the company shall
manage agreements with closely related parties. For significant
transactions with closely related parties, Axactor will use valuations
and statements from an independent third party. There were no
such significant transactions in 2022.
For other transactions with related parties, reference is made to
the servicing agreement with Seatankers Management Co. Ltd.
(a company controlled by Geveran) entered 17 February 2020, as
reported in the annual report 2021. Secondly, the general meeting
approved the option agreement with Andrés López Sánchez
(Country Manager, Spain), dated 18 May 2021 to secure his
retention, as reported in the annual report 2021. The agreement
with Aston AS (a company controlled by Kristian Melhuus), for
advisory services to the company and as reported on in the annual
report 2021, expired on 21 April 2022. All three agreements were
entered on an arms-length basis and are not considered significant.
For further details, see note 29 to the financial statements for 2022.
Deviations from the Code: None
5. Shares and negotiability
Axactor has one class of shares, and each share carries equal voting
rights. The shares are freely negotiable. There are no restrictions on
owning, trading, or voting of shares in the articles of association.
Deviations from the Code: None
6. General meetings
The general meeting is the company’s ultimate corporate body.
The Board strives to ensure that the general meeting is an effective
forum for communication between shareholders and the Board. All
registered shareholders have the right to participate in the general
meetings, which exercise the highest authority of the company. To
attend, nominee-registered shareholders must be registered in the
VPS by the close of business the day before the general meeting.
Notices of general meetings are made available on newsweb.no
and on the company’s website and are sent to all shareholders
no later than three weeks in advance of the meeting. The articles
of association stipulate that the supporting documents handling
matters to be considered at a meeting can be made available on
the company’s website rather than being sent to shareholders
by post. However, shareholders are still entitled to receive the
documents by post upon request if they so wish.
The general meetings in 2022 were conducted as hybrid meetings
with registration deadline CET 12:00 (noon) on the prior business
day. When attending the online general meetings shareholders
were able to listen to a live audiocast of the meeting, see the
presentation, submit questions relating to the items on the
agenda and cast their votes in the real time poll. Identification
of the shareholders was secured. The notices included
information providing the shareholders with sufficient detail for
the shareholders to assess all the matters to be considered as
well as all relevant information regarding attendance and voting
procedures including a proxy form with and without voting
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instructions that permitted separate votes for each item up for
consideration in the general meetings and each candidate up
for election. Advanced votes and proxies were required to be
provided the last business day prior to the general meetings by
electronic means, in writing or by use of written proxy forms. The
Chair declared the general meetings opened. The person chairing
the general meetings was elected by the general meeting and
was considered independent of the company and the Board.
Representatives of the Board, CEO and other members of the
Group executive management, the company’s auditor, and the
Chair of the nomination committee were present at the AGM. For
the EGM only the Chair and CEO were present which was deemed
sufficient given the items treated.
In 2022, Axactor held its AGM on 21 April 2022 with 50,55% of the
shares represented. In addition, an EGM was held on 21 February
2022 to elect Kristian Melhuus as Chair of the Board, with 50,43% of
the shares represented.
The minutes from general meetings are published on newsweb.no
and on the company’s website.
Deviations from the Code: None
7. Nomination committee
The company has established a nomination committee, ref. articles
of association article 8. It consists of 2 members:
• Anne Lise E. Gryte (Chair)
• Magnus Tvenge (member)
Both were elected by the AGM in 2022 for a period of 2 years,
until the AGM in 2024, and are considered independent of
the Board, CEO and other members of the Group executive
management. Efforts are made to ensure that the nomination
committee comprises of persons with the necessary expertise and
understanding of the shareholders’ interests. The general meeting
elected the Chair of the nomination committee and determined the
remuneration to the members based on the nature of the duties
performed and the time invested.
The duties and responsibilities of the nomination committee
are regulated by the guidelines to the nomination committee
approved by the general meeting in 2022. The main responsibilities
are to propose candidates for election to the Board, and to
advice on the remuneration of the Board members. Grounds for
recommendations are provided when nominees are presented to
the general meeting, at latest at the time of the notice of the general
meeting. All shareholders are entitled to nominate candidates to the
Board, and information on whom to contact can be found on the
company’s website.
The nomination committee monitors the need for any changes
in the composition of the Board through dialogue with the
shareholders, board members, and executive management. The
nomination committee has also reviewed the Board of Direcors’
report on its own performance as outlined in Section 9 below.
Deviations from the Code: None
8. Board of Directors
Composition
The Board shall constitute of 3 to 7 directors, as regulated in the
articles of association article 5. The Board was elected by the
general meeting. On 31 December 2022, the Board consisted of
the following 5 directors (see table below).
All members of the Board are elected until the next AGM and may
be re-elected. The composition of the Board is based on broad
representation of the shareholders, as well as the company’s need
for competence, capacity, and ability to form balanced decisions.
Information on each Board member’s expertise and capacity can
be found in the Annual report 2022 on page 43 and on the
company’s website.
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Name Role Age
Considered
independent of
main shareholders Served since Term expires
Participation Board
meetings 2022
Share ownership in Axactor
as of 31 December 2022
(direct/indirect)
Kristian Melhuus Chair 41 Yes
21.02.22 as Chair
(from 15.04.21–21.02.22
as personal deputy for
Kathrine Astrup Fredriksen) AGM 2023
14 as Chair
2 as personal deputy
for Kathrine Astrup
Fredriksen 0
Brita Eilertsen Director 60 Yes 20.01.17 AGM 2023 19 19.892
Lars Erich Nilsen Director 41 No 04.05.18 AGM 2023 19 0
Kathrine Astrup Fredriksen Director 39 No 01.04.20 AGM 2023 15 0
Terje Mjøs Director 61 Yes 20.01.17 AGM 2023 19 500.000
Independence
The nomination committee has evaluated the independency of the
Board members in relation to the Group executive management,
and material business contacts. 3 out of 5 board members are
regarded as independent of the main shareholders.
Deviations from the Code: None
9. The work of the Board
The Board has the primary responsibility for overseeing and
supervising the CEO and the other members of the Group executive
management and daily operations. The Board has adopted written
instructions which describes the responsibilities and duties of the
Board, including how the Board should handle agreements with
related parties, and regulate the allotment of work between the CEO
and the Board. The instructions also regulate work related to the
Board committees.
The Board’s primary responsibilities include: (i) participating in
the development and approval of the strategy and budget, (ii)
performing necessary monitoring functions, and (iii) acting as an
advisory body to the CEO and the other members of the Group
executive management. The Board’s duties may change over time,
depending on the company’s ongoing needs.
The Board has prepared an annual plan for its work with special
emphasis on goals, strategy, and implementation, to ensure that,
(i) the operation of the company complies with the company’s
values, ethical guidelines and corporate social responsibility, (ii)
that the business and assets are well-managed, and (iii) that the
risk management and the financial reporting is carried out in a
satisfactory manner.
The Board has also established rules on conflicts of interest to
ensure that any potential conflicts are identified and handled in a
professional manner. If the Board is to consider material matters
in which the Chair, or has been, personally involved, the meeting in
which the matter is considered shall be chaired by another board
member. There were no such cases in 2022.
The Chair ensures that the Board’s work is performed in an
effective and correct manner. It is the Board’s responsibility to
ensure that that the company is managed with clear distribution
of responsibilities and duties. The Board appoints the CEO, which
is responsible for the day-to-day operations of Axactor Group and
for ensuring that the Board receives accurate, relevant, and timely
information, sufficient for the Board to carry out its duties. The
duties, responsibilities and delegated authorities for the CEO are
stated in the CEO instruction issued by the Board.
All members of the Board regularly receive information about the
operational and financial development. The company’s strategies
are regularly subject to review and evaluation by the Board. The
Board holds regular physical meetings, at least every second
month, where the members may elect to attend either physically
or virtually. Extraordinary Board meetings are held when necessary
and may be conducted as telephone conferences or, in exceptional
circumstances, the Board may take its decisions based on
circulating documents. In 2022, the Board held 19 board meetings
whereof 8 ordinary and 11 extraordinary. Out of the ordinary
meetings 4 were held in relation to the interim reporting and the
others mainly devoted to strategy discussions, budget, business,
operational and financial updates, risk and internal control, ESG
discussions, portfolio assessments, remuneration and employee
related matters, review of polices and instructions etc. The
extraordinary board meetings were held to discuss budget, claim
settlement, change of the Board’s composition, bond buy-back, long-
term incentive programs and portfolio purchases.
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The members of the Board have also visited all of Axactor’s local
business operations. The CEO has been present in all Board
meetings, except during the board deep-dives locally and when the
Board is discussing the CEO compensation and performance. The
Board has also discussed without CEO and other members of the
Group executive management present in all ordinary board meetings
and held separate discussions with the auditor without CEO and
other members of the Group executive management present.
The Board’s work, constitution of the Board committees and review
and approval of the Board’s instructions were discussed in the
constitutional Board meeting following the AGM. The Board has
conducted an annual assessment of its performance and expertise.
The assessment of the year 2022 was conducted in December 2022
and discussed in the Board meeting 16 January 2023.The results
has been presented to the nomination committee. In addition, the
nomination committee has discussed the performance with each
Board member.
Board committees
The Board has established an audit committee, an investment
committee, and a remuneration committee to provide subject
matter advice to and preparation for the full Board.
The audit committee’s main responsibilities are to ensure the
integrity of the Group’s financial reporting, to supervise the Group’s
internal control and risk management system, to ensure the
auditor’s independency, to inform the Board of the results of the
statutory audit, and to ensure that the annual accounts give a fair
picture of the Group’s financial results and financial condition in
accordance with generally accepted accounting principles. The
audit committee works as the Board’s risk committee, reviews
the procedures for risk management, and assess the risks and
financial controls related to the Group’s business activities. The
audit committee ensures that the company has sufficient focus on
ESG to contribute to sustainable development and appropriate risk
management to minimize negative impact of the operations. The
committee follow-up on regulatory changes, compliance matters
that may have a material impact on the financial statements or
policies, monitor material external investigations, sanctions, claims,
litigations, substantial authority contact, licenses issues and
follow up security incidents and whistle blower reports. The audit
committee also receives reports on the work of the internal and the
external auditor and the results of the audits.
As of 31 December 2022, the audit committee consisted of the
following members:
• Brita Eilertsen (Chair)
• Terje Mjøs
All of the members are independent of the Group executive
management, and have qualifications within accounting. The audit
committee held 6 meetings in 2022.
The investment committee oversees the financial investment
process and proposals to ensure that the relevant investments
meet the requirements with respect to expected return, responsible
investments and due diligence prior to commitment of funds.
Further, the investment committee reviews the re-evaluations of
portfolios regularly assess the risks of the market from a micro
and macro perspective and evaluate and implement necessary
mitigations to reduce the risks through monthly reporting and
quarterly meetings.
As of 31 December 2022, the Investment Committee consisted of
the following members:
• Brita Eilertsen (Chair)
• Lars Erich Nilsen
• Kristian Melhuus
The investment committee held 21 meetings in 2022.
The remuneration committee develops the philosophy, policy
and guidelines for remuneration that creates the link between
remuneration levels, business performance and return to
shareholders and makes proposals to the Board on the
employment terms and total remuneration of the CEO and approve
the terms and remuneration for the other members of the Group
executive management which are communicated to the general
meeting. These guidelines create precedence for remuneration
throughout the organization. Further, the committee oversees
that the company has an appropriate succession plan, monitor
employee satisfaction, and assess and follow-up other material
employment issues related to executive personnel.
As of 31 December 2022, the remuneration committee consisted of
the following members:
• Terje Mjøs (Chair)
• Kristian Melhuus
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The remuneration committee held 5 meetings in 2022.
Deviations from the Code: None
10. Risk management and internal control
The Board is responsible for ensuring that the company has sound
internal control and systems for risk and compliance management
appropriate to the extent and nature of the company’s activities.
In 2022 Axactor has continued to build on the advancements
made on the ESG performance, further strengthening the value for
the stakeholders and society. Sustainability is an integral part in
the company’s vision to become the industry benchmark, as also
anchored in the quality policy. This is further outlined in the outlined
in the sustainability report, cf. Annual report 2022 page 13.
The company’s systems and procedures related to risk management
and internal control contributes to efficient operations, timely
and correct financial reporting, and compliance with applicable
laws and regulations. These systems form an integral part of the
management’s decision-making process.
The internal control and risk management system cover the
organizational structure, managerial responsibilities for compliance,
policies and procedures, training, customer and supplier due
diligence, monitoring through financial reviews and internal
audits, incident investigations and corrective actions as well as
reporting. The Code of Conduct and Group policies are reviewed
and approved by the Board annually. All policies have designated
owners within the executive management, responsible for
developing and monitoring compliance with their respective areas.
To each policy a set of procedures are established e.g., the Legal
and compliance policy has a procedure for managing internal
control and risk management. The risk management framework
shall ensure that the business operations comply with applicable
laws and regulations, commitments to sustainable operations, and
business ethics, as well as ensuring profitability, efficiency, and
continuity. The company operates a structured risk management
process that includes relevant categories of risk, such as strategic,
financial, operational, and regulatory risks. A top-down/bottom-up
risk assessment is conducted annually. Key risks are monitored
through monthly business reviews with the Group executive
management, and through quarterly reporting to the Board. All
employees are trained regularly, and annually as a minimum,
through trainings on inter alia business ethics, anti-fraud and
anti-corruption, good debt collection practices, GDPR and anti-
money laundering and customized training within their area of
Group policies
• Quality • Operations
• Corporate governance • Delegation of authority
• IT and Infosec • Physical security
• Code of conduct • CSR
• Procurement • Environmental
• Finance • Debt purchase
• Treasury • Data protection
• Hedging • Insider
• Tax • Anti-fraud and anti-corruption
• Dividend • Anti-trust
• Communication • Trade sanctions
• HR • Human rights
• Legal and compliance
Corporate governance structure
Board of Directors
1
st
line of defense
Supervisory authority
2
nd
line of defense 3
rd
line of defense
Internal
monitoring
and oversight
functions
Internal audit
Operational
management
CEO / Executive management
BIC RCAC
External audit
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responsibility. Compliance with the Code of Conduct is another key
component in the Group’s internal control system. The company
has established an independent whistle-blowing channel for all
employees and vendors to report any concerns related to illegal or
unethical conduct.
Internal controls are conducted throughout the Group annually,
at defined intervals which vary between departments. The legal
and compliance functions, locally and at group level, follow up
on the performance of the controls, as well as any deviations
and necessary mitigations. The results are reported to the Board
regularly. Axactor’s internal auditor conduct audits recommended
by the Board and reports its findings to the Board quarterly.
Axactor’s separate entities prepares its financial statements within
a standard financial accounting system which is consolidated into
the Group’s results. Impairment testing of NPLs is conducted on
a quarterly basis, and goodwill at least on an annual basis. These
processes are reviewed by the external auditor. The external auditor
presents a review of the internal control procedures, including
identified weaknesses and proposals for improvement, to the Board
at least once a year. The audit committee monitors the financial
reporting and internal controls regularly.
Under Norwegian securities laws, the Norwegian Financial
Supervisory Authorities (FSA) oversees that the financial reporting
of issuers of transferable securities which are quoted or for which
admission to quotation has been requested on a regulated market
within the EEA, is compliant with relevant laws and regulations.
As communicated in a press release on 13 December 2021, the
company has received a conclusion from the Norwegian Financial
Supervisory Authority (FSA) regarding the review of certain
accounting practices and their implications for the Annual report
2019 and half-year report 2020. Further information about the FSA
process can be found in Board of Directors’ report page 45 and in
note 4 in the Annual report 2022.
The Board accounts for the main features of the internal control
and risk management systems in the annual report.
Deviations from the Code: None
11. Remuneration of the Board of Directors
The remuneration of Board members is stipulated annually by the
AGM based on the nomination committee’s recommendation.
The remuneration reflects the Board’s responsibilities, work, time
invested, and the complexity of the company.
The remuneration of board members is not performance based and
no share options are granted to board members.
The Chair receives a higher compensation than the other board
members, and work in board committees provides for additional
compensation. The Board shall be informed if any board members
perform other tasks for the company than exercising their role as
board members. None of the members of the Board has taken
on specific assignments for the company in addition to their
appointment as a member of the board. However, prior to being
elected Chair, Kristian Melhuus was during 2022 compensated by
the company for advisory services under the agreement with Aston
AS, cf. Section 4.
Further details about the remuneration of the Board can be found
in note 8 to the Annual report, and in the Remuneration report, on
page 65 of the Annual report 2022.
Deviations from the Code: None
12. Salary and other remuneration of executive management
The Board decides the salary and other compensation paid to
the CEO. The CEO’s salary and bonus are based on an evaluation
with emphasis on specific factors determined by the Board. Each
year, the Board carries out an assessment of the salary and other
remuneration to the CEO and revise the total compensation and
remuneration criteria without any executive manager present.
The CEO proposes the remuneration of the other members of
the Group executive management for approval by the Board’s
remuneration committee. The Board has issued guidelines for the
remuneration of the CEO and the Group executive management
which has been presented and approved by the AGM and published
on the company’s website. The salary level ensures that the
company can attract and retain executive employees with the
desired expertise and experience without harming the company’s
reputation or exceeding the norm in comparable companies.
Performance related salary in the form of performance share
units or share options, bonus schemes or the like is linked to value
creation for shareholders or the earnings performance over time.
The bonus scheme for the CEO is limited to 75% of the annual base
salary and 50% of the annual base salary for the other members of
the Group executive management.
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The Board’s statement regarding remuneration of the executive
management can be found in note 8 to the Annual report, and in the
Remuneration report, on page 65 of the Annual report 2022.
Deviations from the Code: None
13. Information and communication
The company complies with the relevant recommendations and
market practices for reporting financial and other Investor Relation
(“IR”) related information.
The Board, CEO and the other members of the Group executive
management prioritize to give shareholders quick, relevant, and
current information about the company and its activity areas, while
ensuring equal treatment.
The Board has adopted an insider policy to increase awareness of
the responsibility entailed by the possession of inside information
and the consequences of misusing such information and to ensure
that Axactor itself fulfills its responsibilities. The Board has also
adopted a communication policy which regulates spokespersons
on behalf of the company and disclosure of information to
the market and investor community in a transparent, honest,
consistent, reliable, and timely manner. The CEO and the Chief of
IR and strategy are the main contact persons in such respects.
Contact details of the IR representatives are available at the
company website to facilitate the dialogue between the company
and its shareholders.
Financial information is published by producing quarterly reports,
annual reports, and other relevant information, as well as stock
exchange notices, in accordance with Oslo Børs’ recommendations.
The Board shall keep itself updated on matters of special
importance to the shareholders. The Board shall therefore ensure
that the shareholders are given the opportunity to make known
their points of view at and outside the general meeting.
Deviations from the Code: None
14. Take-over bids
There are no restrictions in the articles of association to hinder the
acquisition of shares in Axactor. Guidelines have been prepared for
how the Board shall respond to any takeover bids. The guidelines
are in accordance with the Code.
Deviations from the Code: None
15. Auditor
The auditor has attended one meeting with the Board at which the
company’s management was not present to review the company’s
financial reporting, accounting principles, risk areas, internal
control routines etc. The Board’s audit committee has met 4 times
with the auditor during 2022 where the auditor presented a plan
for the implementation of the audit work, observations, risks etc.
The auditor has confirmed in writing to the Board and the audit
committee that independence and objectivity requirements are met.
The auditor is only used as a financial advisor to the company if
such use of the auditor cannot influence or call into question the
auditors’ independence and objectiveness in its capacity as auditor
for the company. The Board has established guidelines in respect
of the use of the auditor for services other than the audit. The
breakdown between the audit fee and fees for other services for
2022 is described in note 9 to the Annual report 2022.
At the AGM, the Board presented a review of the compensation
paid to the auditor for audit work required by law and remuneration
for other concrete assignments.
In connection with the auditor’s presentation to the Board of
the annual work plan, the Board also reviewed the work and
performance of the auditor.
The Board arranges for the auditor to attend all AGMs and EGMs
when deemed necessary depending on item treated.
The company’s auditor is PwC and considered independent from
the company and the Board.
Deviations from the Code: None
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Remuneration report
The purpose of the remuneration report is to provide an open account of remuneration to members of
the Board and the Group executive management and show that variable remuneration is closely linked to
Axactor’s long-term interests and sustainable value creation. The report explains how remuneration earned
and paid in 2022 complies with Axactor’s policy for remuneration of Group executive management as
approved by the AGM on 21 April 2022.
The report includes the remuneration of the members of the Board
and the Group executive management for the financial year 2022
and describes how the remuneration policy approved by the AGM
in 2022 has been implemented in practice. This report will be
presented at the AGM in 2023 for an advisory shareholder vote. All
amounts in the remuneration report are stated in NOK thousand
unless otherwise specified.
The company’s financial results
2022 ended as the most profitable year in Axactor’s history, with
a return on equity from continuing operations of 10%. The result
comes from a continued focus on the strategy: Narrow focus on
bank and finance claims, low cost through efficient and digital
operations, and maintaining a strict price discipline.
Axactor returned to growth in 2022, and the gross revenue
increased EUR 29.3 million from 2021. EBITDA increased EUR 78.5
million, resulting in an EBITDA margin improvement from 26% in
2021 to 50% in 2022. Including contribution from the discontinued
operations, the net profit to shareholders for the year ended at
EUR 36.8 million.
Changes in the Board and Group executive
management during 2022
Kristian Melhuus was elected Chair of the Board in February 2022.
Prior to that he was a personal deputy board member for board
member Kathrine Astrup Fredriksen. Merete Haugli and Hans Harén
left their positions as a board member in April 2022.
There has been no changes in Group executive management during
2022.
Remuneration
The annualized fixed fees for the board members were increased
in line with the recommendation from the Nomination committee,
approved by the AGM 21 April 2022. The annualized fixed fee for the
Chair was increased by 45% from NOK 550 thousand to NOK 800
thousand. For the other board members, the annualized fixed fee
was increased with 25% from NOK 350 thousand to NOK 437.5
thousand. Any further changes of total actual remuneration at an
individual level in 2022 is due to additional committee responsibilities
that the individual member has taken on during the reporting year.
Further information on the remuneration of the Board is detailed in
the section ‘Remuneration - Board of Directors’.
The Group executive management received an increase in the
annual base salary during 2022 of two percent. The increase is in
line with the overall average salary increase for non-executives in
Axactor.
The bonus pay-out is determined based on the company’s
performance and individual performance. This resulted in a bonus
between 20% and 30% of the Group executive manager’s individual
base salary for 2022.
Remuneration committee (RC)
The RC continuously monitors prevailing market practice and
developments in remuneration in Europe and within its group
of peers. Axactor values ongoing dialogue with shareholders,
institutional investors, and other stakeholders to ensure that
Axactor’s remuneration policy is aligned with market practice and
helps drive execution of the company’s strategy.
In 2022, the RC has focused on the following key areas:
• Reviewing the remuneration and benefits strategy including
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short- and long-term incentive plans to ensure it continues to fit
business needs.
• Maintaining a close dialogue with shareholders, gathering their
feedback and having subsequent discussions on their views
about Axactor’s remuneration arrangements.
• Assessing and recommending for the Board’s approval the
overall remuneration, the composition between fixed and variable
pay, pensions and other employment conditions for the CEO.
• Reviewing the performance of the Group executive management
versus the adopted objectives.
Summary of remuneration policy
The key objectives of Axactor’s remuneration policy are to support
business needs by guiding the development of an appropriate total
remuneration level that has a clear link to the business strategy and
with shareholders’ interests. The remuneration policy applicable to
the Board and the Group executive management approved at the
AGM in April 2022 is compliant with the requirements following
The Norwegian Public Limited Liability Companies Act, section
6-16a. This report is made according to the requirements in section
6-16b of the Norwegian Public Limited Liability Companies Act
and Axactor’s remuneration policy. The report is based on the
guidelines under Directive 2007/36/EC.
Axactor has had no exceptions or deviations from the approved
remuneration policy during 2022.
The remuneration policy, including the purpose and key aspects of
each of the remuneration elements, is summarized in the following
table.
Remuneration policy summary
Component Purpose and link to strategy Size of the award
Board
Fixed fee Attracts individuals with a broad range of experience and
skills, rewards the Board members for setting strategy and
overseeing its implementation.
Fixed fees are set to reflect market practice
and the role of each member of the Board in
terms of efforts and responsibilities.
Shareholding Aligns the interests of the Board members and shareholders. The share purchasing is at the Board
members’ own account.
Group executive management
Base salary (inclusive of pension) Recognizes market value, the nature of the role in terms
of scale, complexity and responsibility and the executive
members’ experience, sustained performance and
contribution.
Subject to annual remuneration review, it may
change in the context of the individual’s long-
term performance, market pay positioning
and consideration of the wider employee
group.
Short-term incentive Rewards the achievement of annual company goals guided
by Axactor’s strategy plan.
Up to 100% of base salary at maximum
performance.
Long-term incentives Link executive remuneration to the achievement of long-term
shareholder value creation and support the retention of the
executives.
Delivered through the stock options plans.
Benefits Provide for the executive management members’ health and
welfare needs.
As per the respective benefits policy and may
vary at individual level.
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Remuneration of the Board
The members of the Board receive an annual fixed fee as
compensation for their services. The Chair’s fee is higher than
the other board members, reflecting the difference in role and
responsibilities.
Board members serving in the Board’s different committees receive
an additional annual compensation based on their participation
in the respective committees. Each committee’s Chair receives
a higher annual fixed compensation than the other committee
members, following the same logic as for the Chair of the Board.
An overview of the members of the Board is available at Axactor’s
website (www.axactor.com)
Fixed fee
Name 2022 2021
Current members
Kristian Melhuus, Chair
1
841 100
Terje Mjøs, Board member 576 465
Brita Eilertsen, Board member 598 480
Lars Erich Nilsen, Board member 488 415
Kathrine Astrup Fredriksen, Board member 432 415
Former members
Merete Haugli, Board member
2
94 546
Hans Olov Haren, Board member 104 415
Glen Ole Rødland, Chair - 277
1
Kristian Melhuus was appointed Chair of the Board 21 February 2022, prior to this he was deputy board member for Kathrine Astrup Frederiksen
2
Merete Haugli was Interim Chair of the Board from 31 May 2021 to 21 February 2022
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Remuneration of the Group executive management
Remuneration of the Group executive managers shall support
business needs with a clear link to the business strategy and share-
holders’ interests. Members of the Group executive management
do not receive any additional remuneration from other internal
Board positions within Axactor.
Group executive remuneration
All numbers in NOK thousand
Name / position Year Salary Benefits Bonus
5
Pension Total
6
Fixed pay Variable pay
Group executive management
Johnny Tsolis, CEO
2022 4,281 12 2,736 361 7,389 63% 37%
2021 4,169 15 889 351 5,423 84% 16%
Nina Mortensen, CFO
2
2022 2,152 12 1,119 177 3,460 68% 6%
2021 938 6 200 50 1,194 83% 17%
Arnt Andre Dullum, COO
2022 2,082 12 927 152 3,172 71% 29%
2021 1,899 15 178 164 2,256 92% 8%
Vibeke Ly, Chief of Staff
2022 2,069 12 941 149 3,171 70% 30%
2021 2,025 15 295 143 2,479 88% 12%
Kyrre Svae, Chief of strategy and IR
3
2022 2,045 12 923 149 3,129 70% 30%
2021 1,876 15 497 143 2,532 80% 20%
Robin Knowles, Chief Investment Officer
4
2022 2,480 - 1,000 16 3,495 71% 29%
2021 2,737 - 285 36 3,058 91% 9%
Former Group executive management
1
Endre Rangnes, CEO
2022 - - - - - n.a n.a
2021 - - 44 - 44 - 100%
Oddgeir Hansen, COO
2022 - - - - - n.a n.a
2021 469 - 1,350 5 1,824 26% 74%
Teemu Alaviitala, CFO
2022 - - - - - n.a n.a
2021 604 3 - 15 622 100% -
1
Salary in last year of employment is based on employment period in the year plus severance pay if agreed
2
Nina Mortensen was appointed CFO from 1 August 2021. Nina Mortensen received a sign-on fee of NOK 200 thousand presented as bonus
3
Kyrre Svae held the position as interim CFO from January 2021 to 31 July 2021
4
Remuneration to Robin Knowles is denominated in GBP, an exchange rate of 11.84 (2021: 11.90) is used to convert to NOK
5
Bonuses are paid in one payment. Bonus for 2021 is paid bonus. Bonus for 2022 is accrued bonus
6
There are no extraordinary items paid to Group executive management
The following information is not included in the table above as its not applicable for Axactor: board fees, multiple year bonus, extraordinary items.
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Long-term incentive plan
The long-term incentive plan is divided into several share option programs based on the year of award. The long-term incentive program for 2022 (ESOP 2022) are based on performance share units, strike set at average
share price last 30 days prior to grant, and vesting conditional upon service conditions and specific performance criteria to ensure commitment to common goals. There are no significant differences between the earlier
share option programs, beside strike price and the dates for vesting and exercise (applicable for ESOP2017, ESOP2019 and ESOP2020). After the awarding date there are no other conditions to be met other than that the
Group executive manager needs to be employed in Axactor on the vesting date (applicable for ESOP2017, ESOP2019 and ESOP2020). There is no lock up period on the shares once the options are exercised.
Granted share options in the reporting period
Name/position Plan Performance period Award date Vesting date Exercise period
Strike price
(NOK)
Awarded at
period start
Granted
in period
Vested
in period
Subject to a
performance
condition
period end
Awarded and
unvested
period end
Johnny Tsolis, CEO
ESOP 2017
28.08.2017 01.06.2018 01/06/2018–15/07/2022 30.00 75,000 - - - -
28.08.2017 01.06.2019 01/06/2019–15/07/2022 32.00 75,000 - - - -
28.08.2017 01.06.2020 01/06/2020–15/07/2022 35.00 75,000 - - - -
28.08.2017 01.06.2021 01/06/2021–15/07/2022 37.50 75,000 - - - -
ESOP 2019
25.04.2019 25.04.2020 25/04/2020–25/04/2024 24.50 77,485 - - - -
25.04.2019 25.04.2021 25/04/2021–25/04/2024 26.50 77,485 - - - -
25.04.2019 25.04.2022 25/04/2022–25/04/2024 28.00 77,486 - 77,486 - -
ESOP 2020
26.06.2020 26.06.2021 26/06/2021–26/06/2025 28.00 125,000 - - - -
26.06.2020 26.06.2021 26/06/2021–26/06/2025 22.00 75,000 - - - -
26.06.2020 26.06.2021 26/06/2021–26/06/2025 17.25 50,000 - - - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 28.00 125,000 - 125,000 - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 22.00 75,000 - 75,000 - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 17.25 50,000 - 50,000 - -
26.06.2020 26.06.2023 26/06/2023–26/06/2025 28.00 125,000 - - - 125,000
26.06.2020 26.06.2023 26/06/2023–26/06/2025 22.00 75,000 - - - 75,000
26.06.2020 26.06.2023 26/06/2023–26/06/2025 17.25 50,000 - - - 50,000
ESOP 2022
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 333,333 - 333,333 333,333
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 333,333 - 333,333 333,333
15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 333,334 - - 333,334
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Name/position Plan Performance period Award date Vesting date Exercise period
Strike price
(NOK)
Awarded at
period start
Granted
in period
Vested
in period
Subject to a
performance
condition
period end
Awarded and
unvested
period end
Nina Mortensen, CFO
ESOP 2020
04.08.2021 02.08.2022 02/08/2022–01/08/2025 28.00 62,500 - 62,500 - -
04.08.2021 02.08.2022 02/08/2022–01/08/2025 22.00 37,500 - 37,500 - -
04.08.2021 02.08.2022 02/08/2022–01/08/2025 17.25 25,000 - 25,000 - -
04.08.2021 02.08.2023 02/08/2023–01/08/2025 28.00 62,500 - - - 62,500
04.08.2021 02.08.2023 02/08/2023–01/08/2025 22.00 37,500 - - - 37,500
04.08.2021 02.08.2023 02/08/2023–01/08/2025 17.25 25,000 - - - 25,000
ESOP 2022
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,666 - 91,666 91,666
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,667 - 91,667 91,667
15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,667 - - 91,667
Arnt André Dullum, COO
ESOP 2017
06.06.2018 01.06.2018 01/06/2018–15/07/2022 30.00 18,750 - - - -
06.06.2018 01.06.2019 01/06/2019–15/07/2022 32.00 18,750 - - - -
06.06.2018 01.06.2020 01/06/2020–15/07/2022 35.00 18,750 - - - -
06.06.2018 01.06.2021 01/06/2021–15/07/2022 37.50 18,750 - - - -
ESOP 2019
25.04.2019 25.04.2020 25/04/2020–25/04/2024 24.50 38,742 - - - -
25.04.2019 25.04.2021 25/04/2021–25/04/2024 26.50 38,742 - - - -
25.04.2019 25.04.2022 25/04/2022–25/04/2024 28.00 38,744 - 38,744 - -
ESOP 2020
26.06.2020 26.06.2021 26/06/2021–26/06/2025 28.00 62,500 - - - -
26.06.2020 26.06.2021 26/06/2021–26/06/2025 22.00 37,500 - - - -
26.06.2020 26.06.2021 26/06/2021–26/06/2025 17.25 25,000 - - - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 28.00 62,500 - 62,500 - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 22.00 37,500 - 37,500 - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 17.25 25,000 - 25,000 - -
26.06.2020 26.06.2023 26/06/2023–26/06/2025 28.00 62,500 - - - 62,500
26.06.2020 26.06.2023 26/06/2023–26/06/2025 22.00 37,500 - - - 37,500
26.06.2020 26.06.2023 26/06/2023–26/06/2025 17.25 25,000 - - - 25,000
ESOP 2022
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,666 - 91,666 91,666
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,667 - 91,667 91,667
15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,667 - - 91,667
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Name/position Plan Performance period Award date Vesting date Exercise period
Strike price
(NOK)
Awarded at
period start
Granted
in period
Vested
in period
Subject to a
performance
condition
period end
Awarded and
unvested
period end
Vibeke Ly, Chief of Staff
ESOP 2017
19.11.2018 01.06.2018 01/06/2018–15/07/2022 30.00 12,500 - - - -
19.11.2018 01.06.2019 01/06/2019–15/07/2022 32.00 12,500 - - - -
19.11.2018 01.06.2020 01/06/2020–15/07/2022 35.00 12,500 - - - -
19.11.2018 01.06.2021 01/06/2021–15/07/2022 37.50 12,500 - - - -
ESOP 2019
25.04.2019 25.04.2020 25/04/2020–25/04/2024 24.50 38,742 - - - -
25.04.2019 25.04.2021 25/04/2021–25/04/2024 26.50 38,742 - - - -
25.04.2019 25.04.2022 25/04/2022–25/04/2024 28.00 38,744 - 38,744 - -
ESOP 2020
26.06.2020 26.06.2021 26/06/2021–26/06/2025 28.00 62,500 - - - -
26.06.2020 26.06.2021 26/06/2021–26/06/2025 22.00 37,500 - - - -
26.06.2020 26.06.2021 26/06/2021–26/06/2025 17.25 25,000 - - - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 28.00 62,500 - 62,500 - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 22.00 37,500 - 37,500 - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 17.25 25,000 - 25,000 - -
26.06.2020 26.06.2023 26/06/2023–26/06/2025 28.00 62,500 - - - 62,500
26.06.2020 26.06.2023 26/06/2023–26/06/2025 22.00 37,500 - - - 37,500
26.06.2020 26.06.2023 26/06/2023–26/06/2025 17.25 25,000 - - - 25,000
ESOP 2022
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,666 - 91,666 91,666
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,667 - 91,667 91,667
15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,667 - - 91,667
Kyrre Svae, Chief of Strategy and IR
ESOP 2020
01.08.2020 01.08.2021 01/08/2021–01/08/2025 28.00 62,500 - - - -
01.08.2020 01.08.2021 01/08/2021–01/08/2025 22.00 37,500 - - - -
01.08.2020 01.08.2021 01/08/2021–01/08/2025 17.25 25,000 - - - -
01.08.2020 01.08.2022 01/08/2022–01/08/2025 28.00 62,500 - 62,500 - -
01.08.2020 01.08.2022 01/08/2022–01/08/2025 22.00 37,500 - 37,500 - -
01.08.2020 01.08.2022 01/08/2022–01/08/2025 17.25 25,000 - 25,000 - -
01.08.2020 01.08.2023 01/08/2023–01/08/2025 28.00 62,500 - - - 62,500
01.08.2020 01.08.2023 01/08/2023–01/08/2025 22.00 37,500 - - - 37,500
01.08.2020 01.08.2023 01/08/2023–01/08/2025 17.25 25,000 - - - 25,000
ESOP 2022
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,666 - 91,666 91,666
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,667 - 91,667 91,667
15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 91,667 - - 91,667
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Name/position Plan Performance period Award date Vesting date Exercise period
Strike price
(NOK)
Awarded at
period start
Granted
in period
Vested
in period
Subject to a
performance
condition
period end
Awarded and
unvested
period end
Robin Knowles,
Chief Investment Officer
ESOP 2017
28.08.2017 01.06.2018 01/06/2018–15/07/2022 30.00 31,250 - - - -
28.08.2017 01.06.2019 01/06/2019–15/07/2022 32.00 31,250 - - - -
28.08.2017 01.06.2020 01/06/2020–15/07/2022 35.00 31,250 - - - -
28.08.2017 01.06.2021 01/06/2021–15/07/2022 37.50 31,250 - - - -
ESOP 2019
25.04.2019 25.04.2020 25/04/2020–25/04/2024 24.50 38,742 - - - -
25.04.2019 25.04.2021 25/04/2021–25/04/2024 26.50 38,742 - - - -
25.04.2019 25.04.2022 25/04/2022–25/04/2024 28.00 38,744 - 38,744 - -
ESOP 2020
26.06.2020 26.06.2021 26/06/2021–26/06/2025 28.00 62,500 - - - -
26.06.2020 26.06.2021 26/06/2021–26/06/2025 22.00 37,500 - - - -
26.06.2020 26.06.2021 26/06/2021–26/06/2025 17.25 25,000 - - - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 28.00 62,500 - 62,500 - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 22.00 37,500 - 37,500 - -
26.06.2020 26.06.2022 26/06/2022–26/06/2025 17.25 25,000 - 25,000 - -
26.06.2020 26.06.2023 26/06/2023–26/06/2025 28.00 62,500 - - - 62,500
26.06.2020 26.06.2023 26/06/2023–26/06/2025 22.00 37,500 - - - 37,500
26.06.2020 26.06.2023 26/06/2023–26/06/2025 17.25 25,000 - - - 25,000
ESOP 2022
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 41,666 - 41,666 41,666
15/06/2022–15/06/2025 15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 41,667 - 41,667 41,667
15.06.2022 15.06.2025 15/06/2025–15/06/2027 6.07 - 41,667 - - 41,667
Oddgeir Hansen, former COO
ESOP 2017
28.08.2017 01.06.2018 01/06/2018–15/07/2022 30.00 75,000 - - - -
28.08.2017 01.06.2019 01/06/2019–15/07/2022 32.00 75,000 - - - -
28.08.2017 01.06.2020 01/06/2020–15/07/2022 35.00 75,000 - - - -
ESOP 2019 25.04.2019 25.04.2020 25/04/2020–25/04/2024 24.50 51,657 - - - -
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Performance measures and outcomes
for 2022 short-term incentive
The Group executive management is measured on a combination
of financial targets for the Group and individual targets relating to
the development according to Axactor’s strategy and ESG targets.
Each member of the Group executive management has between
two and five individual targets with respective sub targets.
Axactor can claw back granted and paid bonuses from
beneficiaries on certain conditions, pursuant to the remuneration
policy. There has been no claw back of granted and paid bonuses in
Axactor for the financial year 2022.
Name position Value driver Weighting
Min
performance
(%)
Min
remuneration
Max
performance
(%)
Max
remuneration
Actual
performance
(%)
Actual
remuneration
Johnny Tsolis, CEO
Financial performance 70% - - 100% 2,169 97.6% 2,116
Other 30% - - 100% 929 66.7% 620
Nina Mortensen, CFO
Financial performance 70% - - 100% 803 97.6% 784
Other 30% - - 100% 344 97.2% 335
Vibeke Ly, Chief of Staff
Financial performance 70% - - 100% 706 97.6% 689
Other 30% - - 100% 302 83.3% 252
Arnt Andre Dullum, COO
Financial performance 70% - - 100% 803 97.6% 697
Other 30% - - 100% 344 66.7% 230
Kyrre Svae, Chief of strategy and IR
Financial performance 70% - - 100% 705 97.6% 688
Other 30% - - 100% 302 77.8% 235
Robin Knowles, Chief Investment Officer
Financial performance 70% - - 100% 824 97.6% 804
Other 30% - - 100% 353 55.6% 196
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Annual changes in remuneration and company result
The annual change in remuneration to the Group executive management is a combination of increase in base salary and decrease in short-term incentive payment and pension contribution. The base salary for the Group
executive management was increased with 2% to compensate for the general cost level increase in Norway. The decrease in short-term incentive payment was a result of weaker financial results for the financial year 2021.
The changes in remuneration are in line with the remuneration policy.
Change in remuneration and percent change
Name / position 2018 2019 2020 2021 2022
Current Group executive management
Johnny Tsolis, CEO
Remuneration
1
3,696 4,472 4,845 5,423 7,389
Change in NOK 1,121 776 374 578 1,966
Change in % 44% 21% 8% 12% 36%
Nina Mortensen, CFO
Remuneration
1
- - - 2,250 3,460
Change in NOK - - - - 1,210
Change in % - - - - 54%
Arnt Andre Dullum, COO
Remuneration
1
- - 1608 2,256 3,172
Change in NOK - - - 648 916
Change in % - - n.a 40% 41%
Vibeke Ly, Chief of Staff
Remuneration
1
1,728 1,753 2,273 2,479 3,171
Change in NOK - 25 519 206 692
Change in % - 1% 30% 9% 28%
Kyrre Svae, Chief of strategy and IR
Remuneration
1
- - 2,412 2,532 3,129
Change in NOK - - - 120 597
Change in % - - n.a 5% 24%
Robin Knowles, Chief Investment Officer
Remuneration
1
2,362 3,467 3,795 3,343 3,495
Change in NOK 300 1,106 328 -452 152
Change in % 15% 47% 9% -12% 5%
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Name / position 2018 2019 2020 2021 2022
Former Group executive management
2
Endre Rangnes, CEO
Remuneration
1
9,350 10,372 11,095 - -
Change in NOK 3,351 1,022 723 - -
Change in % 56% 11% 7% - -
Oddgeir Hansen, COO
Remuneration
1
3,180 5,040 7,400 - -
Change in NOK 910 1,860 2,360 - -
Change in % 40% 58% 47% - -
Siv Farstad, EVP HR
Remuneration
1
2,246 2,689 4,502 - -
Change in NOK -1,383 443 1,813 - -
Change in % -38% 20% 67% - -
Teemu Alaviitala, CFO
Remuneration
1
- - 2,250 - -
Change in NOK - - - - -
Change in % - - - - -
Geir Johansen, CFO
Remuneration
1
4,090 - - - -
Change in NOK 1,412 - - - -
Change in % 53% - - - -
1
Remuneration is grossed up to full year if Group executive has been employed only for a part of the year
2
Salary in last year of employment is based on employment period in the year plus severance pay if agreed
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Group result
Amounts in EUR million 2018 2019 2020 2021 2022
Net result to shareholders of the parent company 4,492 16,326 -18,131 -32,797 36,757
Annual change net result to shareholders of the parent company 1,875 11,834 -34,456 -14,666 69,554
Annual change net result to shareholders of the parent company % 72% 263% -211% -81% 212%
ROE to shareholders 0.6% 6.0% -6.1% -8.5% 9.2%
Annual change ROE -40.0% 900.0% -201.7% -39.3% 208.2%
EBITDA 46.3 92.1 32 23.7 119.0
Annual change EBITDA 31.5 45.8 -60.1 -8.3 95.3
Annual change EBITDA % 213% 99% -65% -26% 402%
Gross revenue 238.8 368.1 325.2 344.5 336.9
Annual change gross revenue 134.1 129.3 -42.9 19.3 -7.6
Annual change gross revenue % 128% 54% -12% 6% -2%
Axactor average remuneration
The average remuneration presented is excluding Group management remuneration.
Amounts in NOK thousand 2018 2019 2020 2021 2022
Employees in Axactor ASA
1
Average total salary 1,101 1,039 1,199 1,136 1,128
Change in NOK 96 -62 160 -63 -8
Change in % 10% -6% 15% -5% -1%
Employees in Norwegian
Axactor companies
1
Average total salary 657 596 649 674 644
Change in NOK - -61 53 25 -30
Change in % - -9% 9% 4% -4%
1
Reduction in salary relates to differences in paid bonus and new employees in 2022
The remuneration report for 2021 was approved by 94% of the votes on the annual general meeting 21 April 2022.
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Statement by the Board of Directors
The remuneration report is prepared in accordance with section 6-16b of the Norwegian Public Limited Liability Companies Act. The Board has
considered and adopted the remuneration report of Axactor ASA for the financial year 2022. The remuneration report will be presented for an
advisory vote at the Annual General Meeting on 3 May 2023.
Oslo, 30 March 2023
Kristian Melhuus
Chair
Brita Eilertsen
Board member
Terje Mjøs
Board member
Lars Erich Nilsen
Board member
Kathrine Astrup Fredriksen
Board member
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To the General Meeting of Axactor ASA
Independent auditor’s assurance report on report
on salary and other remuneration to directors
Opinion
We have performed an assurance engagement to obtain
reasonable assurance that Axactor ASA report on salary and other
remuneration to directors (the remuneration report) for the financial
year ended 31 December 2022 has been prepared in accordance
with section 6-16 b of the Norwegian Public Limited Liability
Companies Act and the accompanying regulation.
In our opinion, the remuneration report has been prepared,
in all material respects, in accordance with section 6-16 b of
the Norwegian Public Limited Liability Companies Act and the
accompanying regulation.
Board of directors’ responsibilities
The board of directors is responsible for the preparation of the
remuneration report and that it contains the information required in
section 6-16 b of the Norwegian Public Limited Liability Companies
Act and the accompanying regulation and for such internal
control as the board of directors determines is necessary for the
preparation of a remuneration report that is free from material
misstatements, whether due to fraud or error.
Our Independence and Quality Management
We are independent of the company as required by laws and
regulations and the International Ethics Standards Board for
Accountants’ Code of International Ethics for Professional
Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We apply the International
Standard on Quality Management (ISQM) 1, Quality Management
for Firms that Perform Audits or Reviews of Financial Statements,
or Other Assurance or Related Services Engagements, and
accordingly, maintain a comprehensive system of quality control
including documented policies and procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Auditor’s responsibilities
Our responsibility is to express an opinion on whether the
remuneration report contains the information required in section
6-16 b of the Norwegian Public Limited Liability Companies Act
and the accompanying regulation and that the information in the
remuneration report is free from material misstatements. We
conducted our work in accordance with the International Standard
for Assurance Engagements (ISAE) 3000 – “Assurance engagements
other than audits or reviews of historical financial information”.
We obtained an understanding of the remuneration policy approved
by the general meeting. Our procedures included obtaining an
understanding of the internal control relevant to the preparation
of the remuneration report in order to design procedures that
are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the company’s
internal control. Further we performed procedures to ensure
completeness and accuracy of the information provided in the
remuneration report, including whether it contains the information
required by the law and accompanying regulation. We believe that
the evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Oslo, 30 March 2023
PricewaterhouseCoopers AS
Anne Lene Stensholdt
State Authorised Public Accountant
(This document is signed electronically)
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Consolidated financial statements
80
Financial statements of Axactor ASA
128
Responsibility statement
148
Auditor’s report
149
Alternative performance measures
153
/
Financial
statements
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FinancialsFinancials Financials
/
Consolidated financial statements
Consolidated statement of profit or loss
81
Consolidated statement of comprehensive income
82
Consolidated statement of financial position
83
Consolidated statement of cash flows
84
Consolidated statement of changes in equity
85
Notes to the consolidated financial statements
86
Note 1 Corporate information
86
Note 2 Significant accounting policies
86
Note 3 Risk management
92
Note 4 Significant accounting judgements, estimates
and assumptions
95
Note 5 Operating segments
96
Note 6 Income
98
Note 7 Employee remuneration
99
Note 8 Executive remuneration
100
Note 9 Other operating expenses
101
Note 10 Leases
102
Note 11 Financial items
103
Note 12 Income tax
103
Note 13 Earnings per share
105
Note 14 Intangible assets
106
Note 15 Goodwill and intangible assets with indefinite
useful lives
107
Note 16 Property, plant and equipment
108
Note 17 Fair value measurement
109
Note 18 Purchased loan portfolios
111
Note 19 Hedge accounting
113
Note 20 Shares in subsidiaries
114
Note 21 Accounts receivable and other current assets
115
Note 22 Cash and cash equivalents
115
Note 23 Issued shares and share capital
116
Note 24 Share-based payments
117
Note 25 Interest-bearing loans and borrowings
119
Note 26 Post-employment benefits
122
Note 27 Other non-current liabilities
122
Note 28 Other current liabilities
123
Note 29 Related party transactions
123
Note 30 Purchase price allocations
124
Note 31 Pledged assets
125
Note 32 Discontinued operations
125
Note 33 Events after the reporting period
127
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FinancialsFinancials | Consolidated financial statementsFinancials | Consolidated financial statements
Consolidated statement of profit or loss
EUR thousand Note 2022 2021
1
Continuing operations
Interest income from purchased loan portfolios
6, 18 187,490 168,421
Net gain/(loss) purchased loan portfolios
6, 18 -8,185 -62,013
Revenue from sale of repossessed assets
6 4,526 3,018
Other operating revenue
5 55,846 48,858
Other income 15 15
Total income
5, 6 239,692 158,298
Cost of repossessed assets sold, incl impairment -1,496 -2,136
Personnel expenses
7, 8 -64,655 -61,313
Other operating expenses
9 -54,587 -54,350
Total operating expenses -120,738 -117,800
EBITDA 118,955 40,498
Amortization and depreciation
10, 14, 16 -8,895 -9,616
Operating profit 110,060 30,882
Financial revenue
11 3,194 51
Financial expenses
11 -59,061 -51,030
Net financial items -55,867 -50,979
Profit/(loss) before tax from continuing operations 54,193 -20,097
Income tax expense
12 -13,549 -5,296
Net profit/(loss) after tax from continuing operations 40,644 -25,393
EUR thousand Note 2022 2021
1
Discontinued operations
Net profit/(loss) after tax from discontinued operations
32 -8,066 -20,599
Net profit/(loss) after tax 32,578 -45,992
Attributable to
Non-controlling interests
Net profit/(loss) after tax from continuing operations 489 -952
Net profit/(loss) after tax from discontinued operations -4,668 -12,242
Net profit/(loss) after tax -4,179 -13,194
Shareholders of the parent company
Net profit/(loss) after tax from continuing operations 40,156 -24,440
Net profit/(loss) after tax from discontinued operations -3,399 -8,357
Net profit/(loss) after tax 36,757 -32,797
Earnings per share
From continuing operations, basic and diluted
13 0.133 0.083
From continuing and discontinued operations, basic and diluted
13 0.122 0.112
1
Comparative figures have been re-presented due to a discontinued operation, see note 32
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Consolidated statement of comprehensive income
EUR thousand Note 2022 2021
Net profit/(loss) after tax 32,578 -45,992
Items that will not be reclassified subsequently to profit and loss
Remeasurement of pension plans 238 -4
Net gain/(loss) on equity instruments designated at fair value through OCI 16 -16
Items that may be reclassified subsequently to profit and loss
Foreign currency translation differences - foreign operations -11,343 8,924
Fair value net gain/(loss) on cash flow hedges during the period
19 9,876 -230
Cumulative (gain)/loss on cash flow hedges reclassified to profit or loss
19 -245 -
Other comprehensive income/(loss) after tax -1,458 8,675
Total comprehensive income/(loss) 31,120 -37,317
Attributable to
Non-controlling interests -4,179 -13,194
Shareholders of the parent company 35,299 -24,123
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Consolidated statement of financial position
EUR thousand Note 2022 2021
Assets
Intangible non-current assets
Goodwill
6, 14, 15 61,069 55,960
Deferred tax assets
12 5,356 13,700
Other intangible assets
6, 14 16,617 17,824
Tangible non-current assets
Property, plant and equipment
6, 16 2,372 2,290
Right of use assets
6, 10 11,757 10,768
Financial non-current assets
Purchased loan portfolios
17, 18 1,252,642 1,095,789
Other non-current assets 607 366
Total non-current assets 1,350,420 1,196,698
Current assets
Stock of secured assets - 29,310
Repossessed assets 3,230 -
Accounts receivable
21 6,376 7,060
Other current assets
21 29,021 16,154
Restricted cash
22 7,026 5,798
Cash and cash equivalents
22 29,045 38,155
Total current assets 74,699 96,476
Assets classified as held for sale
32 12,660 -
Total assets 1,437,778 1,293,175
EUR thousand Note 2022 2021
Equity and liabilities
Equity
Share capital
23 158,369 158,150
Other paid-in equity 270,381 269,919
Retained earnings -3,699 -40,475
Other components of equity -9,016 -7,320
Non-controlling interests -5,441 976
Total equity
24 410,593 381,249
Non-current liabilities
Interest-bearing debt
17, 25 445,590 834,411
Deferred tax liabilities
12 6,143 6,144
Lease liabilities
10 9,404 8,866
Other non-current liabilities
26, 27 3,423 1,994
Total non-current liabilities 464,561 851,415
Current liabilities
Accounts payable 7,141 7,282
Interest-bearing debt
17, 25 499,709 3,845
Taxes payable 17,578 20,259
Lease liabilities
10 2,835 2,185
Other current liabilities
28 24,741 26,941
Total current liabilities 552,005 60,511
Liabilities directly associated with assets classified as held for sale
32 10,619 -
Total liabilities 1,027,185 911,925
Total equity and liabilities 1,437,778 1,293,175
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Consolidated statement of cash flows
EUR thousand Note 2022 2021
Operating activities
Profit/(loss) before tax from continuing operations 54,193 -20,097
Profit/(loss) before tax from discontinued operations -8,066 -20,599
Taxes paid
12 -10,713 -3,261
Adjustments for:
Net financial items, continuing operations
11 55,867 50,979
Net financial items, discontinued operations
32 1,059 3,796
Portfolio amortization and revaluation
5, 18 97,218 148,542
Cost of repossessed assets sold, incl impairment 1,496 2,136
Cost of REOs sold, incl. impairment
32 18,318 48,379
Depreciation and amortization
10, 14, 16 8,895 9,654
Calculated cost of employee share options
24 462 180
Change in working capital 1,291 4,991
Cash flow from operating activities before NPL and REO investments 220,019 224,700
Purchase of loan portfolios
18 -290,816 -115,402
Sale of loan portfolios - 450
Purchases related to REO/repossessed assets -227 -193
Net cash flow from operating activities -71,025 109,555
EUR thousand Note 2022 2021
Investing activities
Investment in subsidiaries, net of cash acquired
30 -3,085 -
Purchase of intangible and tangible assets
14, 16 -4,862 -4,718
Interest received 203 5
Net cash flow from investing activities -7,744 -4,712
Financing activities
Proceeds from borrowings
25 354,051 542,496
Repayment of debt
25 -222,001 -628,681
Interest paid -51,067 -42,050
Loan fees paid
25 -83 -24,033
Lease payments, principal amount
10 -2,755 -2,812
Repayments to non-controlling interests -2,238 -6,625
New share issues - 50,792
Cost related to share issues - -1,460
Net cash flow from financing activities 75,907 -112,373
Net change in cash and cash equivalents -2,861 -7,531
Cash and cash equivalents at the beginning of period, incl. restricted cash 43,953 50,725
Currency translation -1,413 759
Cash and cash equivalents at end of period, incl. restricted cash
22 39,679 43,953
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Consolidated statement of changes in equity
Equity related the shareholders of the parent company
Restricted Non-restricted
EUR thousand Share capital Other paid in equity Retained earnings Translation reserve
Cash flow hedge
reserve Other reserves Total
Non-controlling
interest Total equity
Balance at 31 Dec 2020 97,040 236,562 -16,036 -15,999 - - 301,566 74,113 375,680
Result of the period -32,797 -32,797 -13,194 -45,992
Other comprehensive income of the period -4 8,924 -230 -16 8,675 8,675
Total comprehensive income for the period - - -32,802 8,924 -230 -16 -24,123 -13,194 -37,317
Repayments to non-controlling interests - -6,625 -6,625
Acquisition of remaining 50% of Axactor Invest 1 7,319 8,363 15,682 -53,317 -37,635
New share issues 61,110 27,318 88,427 88,427
Cost related to share issues -1,460 -1,460 -1,460
Share-based payment 180 180 180
Balance at 31 Dec 2021 158,150 269,919 -40,475 -7,074 -230 -16 380,273 976 381,249
Result of the period 36,757 36,757 -4,179 32,578
Other comprehensive income of the period 238 -11,343 9,630 16 -1,458 -1,458
Total comprehensive income for the period - - 36,995 -11,343 9,630 16 35,299 -4,179 31,120
Repayments to non-controlling interests - -2,238 -2,238
Share-based payment 462 462 462
Bonus issue 219 -219 - -
Balance at 31 Dec 2022 158,369 270,381 -3,699 -18,417 9,401 - 416,033 -5,441 410,593
Oslo, 30 March 2023
Kristian Melhuus
Chair
Brita Eilertsen
Board member
Terje Mjøs
Board member
Lars Erich Nilsen
Board member
Kathrine Astrup
Fredriksen
Board member
Johnny Tsolis
CEO
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Fair value sensitivity table
Performance
EUR million 90% 95% 100% 105% 110%
WACC
5% 1,353 1,427 1,501 1,576 1,650
6% 1,292 1,363 1,433 1,504 1,575
7% 1,235 1,303 1,371 1,439 1,506
8% 1,191 1,257 1,322 1,388 1,453
9% 1,135 1,197 1,260 1,322 1,385
10% 1,090 1,150 1,210 1,270 1,330
11% 1,049 1,106 1,164 1,222 1,280
Fair value of forward flow commitments, balance movements
EUR thousand 2022 2021
Balance at 1 Jan -409 -834
Deliveries 409 1,221
Value change - -782
Currency translation differences - -14
Balance at 31 Dec - -409
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/
Financial statements of Axactor ASA
Parent company statement of profit or loss
129
Statement of comprehensive income
129
Statement of financial position
130
Statement of cash flows
131
Statement of changes in equity
132
Notes to the parent company financial statements
133
Note 1 Corporate information
133
Note 2 Significant accounting policies
133
Note 3 Employee remuneration
134
Note 4 Executive remuneration
134
Note 5 Other operating expenses and remuneration to
auditors
136
Note 6 Leases
136
Note 7 Financial items
137
Note 8 Income tax
138
Note 9 Intangible assets
139
Note 10 Property, plant and equipment
139
Note 11 Issued shares and share capital
140
Note 12 Shares in subsidiaries
141
Note 13 Other current assets
142
Note 14 Cash and cash equivalents
142
Note 15 Loans and receivables to group companies
143
Note 16 Interest-bearing loans and borrowings
144
Note 17 Other current liabilities
146
Note 18 Hedge accounting
146
Note 19 Events after the reporting period
147
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Parent company statement of profit or loss
EUR thousand Note 2022 2021
Management services to group companies 11,241 10,519
Total revenue 11,241 10,519
Personnel expenses
3 -5,796 -4,922
Operating expenses
5 -7,665 -7,394
Total operating expense -13,461 -12,315
EBITDA -2,220 -1,797
Amortization and depreciation
6, 9, 10 -2,334 -2,004
Operating profit/(loss) -4,554 -3,801
Financial revenue
7 42,328 22,898
Financial expenses
7 -48,062 -35,525
Net financial items -5,734 -12,626
Profit/(loss) before tax -10,288 -16,427
Income tax expense
8 -4,662 23
Net profit/(loss) after tax -14,950 -16,404
Distibution from other paid in capital -14,950 -16,404
Statement of comprehensive income
EUR thousand Note 2022 2021
Net profit/(loss) after tax -14,950 -16,404
Items that may be reclassified subsequently to profit or loss
Fair value net gain/(loss) on cash flow hedges during the period
18 9,876 -230
Cumulative (gain)/loss on cash flow hedges reclassified to profit or loss -245
Other comprehensive income/(loss) after tax 9,630 -230
Total comprehensive income/(loss) -5,319 -16,634
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Statement of financial position
EUR thousand Note 2022 2021
Assets
Intangible non-current assets
Intangible assets
9 9,612 10,291
Tangible non-current assets
Property, plant and equipment
10 55 71
Right of use assets
6 361 521
Financial non-current assets
Investment in subsidiaries
12 332,108 532,086
Loans to group companies
15 428,728 290,507
Other long-term receivables 367 -
Total non-current assets 771,231 833,475
Current assets
Receivables group companies
15 25,400 37,310
Other current assets
13 13,175 664
Restricted cash
14 422 402
Cash and cash equivalents
14 4,046 4,182
Total current assets 43,043 42,558
Total assets 814,275 876,033
EUR thousand Note 2022 2021
Equity and liabilities
Equity
Share capital 158,369 158,150
Other paid in capital 202,225 218,386
Cash flow hedge reserve
18 9,401 -230
Result for the year -14,950 -16,404
Total equity
11 355,046 359,903
Non-current liabilities
Interest-bearing debt
16 445,590 491,369
Deferred tax liabilities
8 3,956 167
Lease liabilities
6 245 401
Other non-current liabilities 367 230
Total non-current liabilities 450,159 492,167
Current liabilities
Accounts payable 777 781
Liabilities group companies
15 260 15,607
Interest-bearing debt
16 4,057 3,824
Taxes payable
8 2,017 1,962
Lease liabilities
6 156 156
Other current liabilities
17 1,802 1,632
Total current liabilities 9,070 23,964
Total liabilities 459,229 516,131
Total equity and liabilities 814,275 876,033
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Statement of cash flows
EUR thousand Note 2022 2021
Operating activities
Profit/(loss) before tax -10,288 -16,427
Taxes paid
8 -2,864 -1,787
Adjustments for:
Net financial items
7 5,734 12,626
Depreciation and amortization
6, 9, 10 2,334 2,004
Calculated cost of employee share options 112 81
Change in working capital 11,045 1,500
Net cash flow from operating activities 6,073 -2,003
EUR thousand Note 2022 2021
Investing activities
Investment/share issue in subsidiaries - -148,100
Purchase of intangible and tangible assets
9, 10 -1,479 -1,652
Interest received 15 1
Net group contribution received - 4,346
Net cash flow from investing activities -1,464 -145,405
Financing activities
Proceeds/repayments from external borrowings
16 -49,500 299,717
Loans to subsidiaries/repaid from subsidiaries 75,086 -176,593
Interest paid -30,006 -21,217
Lease payments, principal amount
6 -156 -144
Loan fees paid
16 - -10,976
New share issues - 50,792
Costs related to share issues - -1,460
Net cash flow from financing activities -4,576 140,119
Net change in cash and cash equivalents 34 -7,289
Cash and cash equivalents at the beginning of period, incl. restricted cash 4,584 10,988
Currency translation -150 886
Cash and cash equivalents at end of period, incl. restricted cash 4,468 4,584
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Statement of changes in equity
Restricted Non-restricted
EUR thousand Share capital
Other
paid in capital
Cash flow
hedge reserve
Result
for the year Total Total equity
Balance at 31 Dec 2020 97,040 219,580 - -27,231 192,349 289,389
Transfer of prior year's net result -27,231 27,231 - -
Result of the period -16,404 -16,404 -16,404
Other comprehensive income of the period -230 -230 -230
Total comprehensive income for the period - -27,231 -230 10,827 -16,634 -16,634
New share issues 61,110 27,318 27,318 88,427
Cost related to share issues -1,460 -1,460 -1,460
Share-based payment 180 180 180
Balance at 31 Dec 2021 158,150 218,386 -230 -16,404 201,753 359,903
Transfer of prior year's net result -16,404 16,404 - -
Result of the period -14,950 -14,950 -14,950
Other comprehensive income of the period 9,630 9,630 9,630
Total comprehensive income for the period - -16,404 9,630 1,454 -5,319 -5,319
Bonus issue 219 -219 -219 -
Share-based payment 462 462 462
Balance at 31 Dec 2022 158,369 202,225 9,401 -14,950 196,676 355,046
Oslo, 30 March 2023
Kristian Melhuus
Chair
Brita Eilertsen
Board member
Terje Mjøs
Board member
Lars Erich Nilsen
Board member
Kathrine Astrup
Fredriksen
Board member
Johnny Tsolis
CEO
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Notes to the parent company financial statements
Note 1 Corporate information
The Parent Company Axactor ASA (“Axactor”) is a Norwegian public
limited liability company (Allmennaksjeselskap), domiciled in Norway. The
registered address is Drammensveien 167, 0277 Oslo. The company’s
shares are traded in Norway on Oslo Børs.
The Annual Report and Parent Company Report for Axactor ASA were
adopted by the Board of Directors on 30 March 2023 and will be submitted
for approval to the Annual General Meeting on 3 May 2023.
Note 2 Significant accounting policies
These parent company financial statements should be read in conjunction
with the consolidated financial statements of the Axactor Group,
published together with these financial statements. With the exceptions
described below, Axactor ASA applies the accounting policies of the
Group, as described in Axactor Group’s disclosure, note 2 Significant
accounting policies, and reference is made to the Axactor Group note for
further details. To the extent that the company applies policies that are
not described in the Axactor Group note due to group level materiality
considerations, such policies are included below, if necessary, for sufficient
understanding of Axactor’s accounts.
The principal accounting policies applied in the preparation of these
financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated.
As a result of rounding adjustments, the figures in one or more columns
may not add up to the total of that column.
2.1 Basis for preparation
The financial statements of the parent company are prepared in
accordance with simplified IFRS pursuant to the Norwegian Accounting
Act §3-9 and regulations regarding simplified application of IFRS issued
by the Norwegian Ministry of Finance on 3 November 2014. The company
follows the exception from IAS 10 regarding timing of recognition of group
contribution and dividend.
The parent company’s functional currency is euro (EUR) and this is also the
reporting currency for the Group. All amounts in the financial reports are
stated in EUR thousands unless otherwise specified.
2.2 Investments in subsidiaries
Investments in subsidiaries are accounted for using the cost method in
the parent company accounts. The investments are valued at cost unless
impairment losses occur. Impairment of investments are recognized as
financial expenses in the statement of profit or loss.
2.3 Segment reporting
Axactor ASA’s activities are currently organized as one operating unit for
internal reporting purposes, thus no segment information is presented in
these financial statements.
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Note 3 Employee remuneration
Personnel expenses
EUR thousand 2022 2021
Salaries 2,803 2,752
Bonus 2,034 1,561
Social security costs 528 479
Pension costs 133 103
Share-based payment expense 112 83
Other benefits 188 -57
Total personnel expenses 5,796 4,922
Axactor ASA meets the local mandatory occupational pension requirement.
Average number of FTEs
EUR thousand 2022 2021
Number of FTEs, 1 Jan 19 16
Number of FTEs, 31 Dec 20 19
Average number of FTEs 19 17
Note 4 Executive remuneration
Board of Directors remuneration
The following remuneration has been made to the members of the Board of Directors during the year.
Remuneration presented includes remuneration for participation in Board committees.
EUR thousand 2022 2021
Kristian Melhuus
1
80 10
Terje Mjøs 55 45
Brita Eilertsen 57 47
Lars Erich Nilsen 46 41
Kathrine Astrup Fredriksen 41 41
Merete Haugli
2,
3
9 54
Hans Harén
3
10 41
Glen Ole Rødland
4
- 27
Total remuneration 298 306
1
Chair of the Board from February 2022
2
Interim chair of the Board from May 2021 to February 2022
3
Member of the Board until April 2022
4
Chair of the Board until May 2021
Nomination committee
The following remuneration has been made to the members of the nomination committee during the year:
EUR thousand 2022 2021
Anne Lise Ellingsen Gryte 6 -
Magnus Tvenge 4 -
Total remuneration 10 -
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Executive management remuneration
EUR thousand Salary Bonus
7
Pension
Share
options
1
Other 2022
Johnny Tsolis, CEO 407 260 34 34 1 734
Nina Mortensen, CFO 204 106 17 16 1 343
Arnt Andre Dullum, COO 198 88 14 12 1 312
Vibeke Ly, Chief of Staff 197 89 14 12 1 312
Kyrre Svae, Chief of Strategy and IR 194 88 14 11 1 307
Robin Knowles, Chief Investment Officer 236 95 1 8 - 340
Total remuneration 1,435 726 95 91 6 2,349
EUR thousand Salary Bonus
7
Pension
Share
options
1
Other 2021
Johnny Tsolis, CEO 410 87 35 39 1 573
Endre Ragnes, CEO
2
- 44 - - - 44
Nina Mortensen, CFO
3
92 20 7 - 1 120
Teemu Alaviitala, CFO
4
44 16 2 - - 61
Arnt Andre Dullum, COO 178 18 16 17 2 230
Oddgeir Hansen, COO
5
46 133 - - - 179
Vibeke Ly, Chief of Staff 199 29 14 17 1 261
Kyrre Svae, Chief of Strategy and IR
6
185 49 14 8 2 257
Robin Knowles, Chief Investment Officer 297 25 3 19 - 344
Total remuneration 1,451 420 91 100 7 2,069
1
Cost in relation to share option program, not exercised
2
CEO until 3 April 2020
3
CFO from 1 August 2021
4
CFO until 31 January 2021
5
COO until 1 July 2020
6
Interim CFO from 1 February to 31 July 2021
7
Bonus for 2022 represents accrued bonus for the financial year, whereas bonus for 2021 represents paid bonus in the financial year
The CEO, Johnny Tsolis, has a six-month notice period and is entitled to a severance pay of six months in case of
termination by the company. In addition, there is a non-compete and non-solicitation clause in the employment
agreement.
The share-based option program is presented in Group note 24. Bonus stated in tables above reflects the paid
amounts during the year. At the end of 2022 no loan or prepayments were granted to members of the Board or
executive management.
Members of the executive management employed in Axactor ASA has an additional contribution pension entitling
them to pension rights for salary over 12G (Norwegian Grunnbeløp).
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Note 5 Other operating expenses and remuneration to auditors
Other operating expenses
EUR thousand 2022 2021
Direct operating expenses 1,217 972
External services 1,769 2,651
IT expenses 4,366 3,590
Other expenses 313 181
Total other operating expenses 7,665 7,394
Auditor’s remuneration
PricewaterhouseCoopers AS (PwC) is the auditor of Axactor ASA. The following table shows fees to the appointed
auditor. The reported fee is the recognized expense for the year.
EUR thousand 2022 2021
Auditing 242 242
Other services 24 15
Total auditor’s remuneration 266 297
The audit fees and other operating expenses presented in the financial statements are exclusive of VAT.
Note 6 Leases
The company leases premises only. The Facility contract was entered into on 1 April 2020 and is being recognized as
a right of use asset and lease liability from this date.
Leasing contracts are classified as lease liabilities and right of use assets under IFRS 16. See Axactor Group note 2.11.
Right of use assets
EUR thousand Buildings Total
Right of use assets at 31 Dec 2020 681 681
Depreciation -160 -160
Right of use assets at 31 Dec 2021 521 521
Depreciation -160 -160
Right of use assets at 31 Dec 2022 361 361
Lease liabilities
EUR thousand 2022 2021
Lease liabilities at 1 Jan 558 701
Lease payments, principal amount -156 -144
Lease liabilities at 31 Dec 401 558
Current 156 156
Non-current 245 401
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The future aggregated minimum lease payments under lease liabilities are as follows:
EUR thousand 2022 2021
Undiscounted lease liabilities and maturity of cash outflows
< 1 year 188 185
1–2 years 192 188
2–3 years 49 192
3–4 years - 49
Total undiscounted lease liabilities 429 614
Discounting element -28 -57
Total lease liabilities 401 558
Note 7 Financial items
EUR thousand 2022 2021
Financial revenue
Interest on bank deposits 15 1
Interest on loans to group companies 19,158 12,778
Group contribution 20,806 4,323
Net foreign exchange gain
1
- 5,796
Gain on purchase of bonds in own bond loans (note 16) 2,349 -
Total financial revenue 42,328 22,898
Financial expenses
Interest expense on borrowings
2
-33,612 -27,041
Net foreign exchange loss
1
-6,870 -
Impairment of investment in subsidiaries - -6,760
Impairment of loans to group companies -7,400 -1,600
Other financial expenses -181 -123
Total financial expenses -48,062 -35,525
Net financial items -5,734 -12,626
1
Foreign exchange gains and losses are presented net as either financial revenue or financial expenses, depending on the net position
2
In 2022, EUR 0.3 million are reclassified from the cash flow hedge reserve (OCI) into interest expense on borrowings, see note 18
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Note 8 Income tax
Income tax calculation
EUR thousand 2022 2021
Profit/(loss) before tax -10,288 -16,427
Adjustment prior year - -297
Non deductible expenses - 2
Other permanent differences - 3,547
Interest expense limitation 4,539 8,118
Group contribution with tax effect - 15,942
Change in temporary differences 10,582 -640
Adjustment for currency differences due to tax calculation in NOK 5,563 -119
Basis for income tax 10,396 10,126
Taxes payable before tax deduction scheme 2,287 2,227
Tax deduction scheme
1
-270 -265
Taxes payable 2,017 1,962
Tax expense in profit or loss
Change in deferred taxes -1,137 1,460
Adjustment for previous years -1,238 -158
Tax effect on permanent differences -2,287 -
Adjustment for currency differences due to tax calculation in NOK - -1,279
Income tax expense -4,662 23
1
Skattefunn – Tax deduction scheme in Norway for companies with research and develoment projects
Tax included in other comprehensive income
EUR thousand 2022 2021
Fair value net gain/(loss) on cash flow hedges 2,720 -
Cumulative (gain)/loss on cash flow hedges reclassified to profit or loss -69 -
Deferred tax charged to OCI 2,651 -
Temporary differences
EUR thousand 2022 2021
Non-current assets/liabilities 882 -
Current assets 16 214
Limitation interest carried forward 6,037 3,202
Differences not included in the calculation of deferred tax -8,239 -3,583
Hedges over OCI -2,652 -
Net income tax reduction temporary differences -3,956 -167
Net deferred tax asset - -
Net deferred tax liability -3,956 -167
Net deferred tax -3,956 -167
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Note 9 Intangible assets
EUR thousand Software Other intangibles Total
Cost price
Cost price at 31 Dec 2020 10,871 2,745 13,616
Acquisitions 1,227 412 1,639
Cost price at 31 Dec 2021 12,098 3,157 15,255
Acquisitions 904 552 1,456
Cost price at 31 Dec 2022 13,002 3,709 16,711
Amortization
Accumulated amortizations at 31 Dec 2020 -2,445 -720 -3,165
Amortization -1,447 -352 -1,799
Accumulated amortizations at 31 Dec 2021 -3,892 -1,072 -4,965
Amortization -1,652 -483 -2,135
Accumulated amortizations at 31 Dec 2022 -5,544 -1,556 -7,100
Carrying amount at 31 Dec 2022 7,458 2,153 9,612
Useful life 5–10 yr 5–10 yr
Note 10 Property, plant and equipment
EUR thousand Fixtures Office eqipment Total
Cost price
Cost price at 31 Dec 2020 145 95 241
Acquisitions 6 7 13
Cost price at 31 Dec 2021 152 102 253
Acquisitions 2 21 23
Cost price at 31 Dec 2022 154 123 276
Depreciation
Accumulated depreciations at 31 Dec 2020 -88 -50 -138
Depreciation -25 -19 -44
Accumulated depreciations at 31 Dec 2021 -59 -69 -182
Depreciation -13 -26 -39
Accumulated depreciations at 31 Dec 2022 -126 -95 -221
Carrying amount at 31 Dec 2022 28 27 55
Useful life 5 yr 3 yr
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Note 11 Issued shares and share capital
On 21 April 2022, the company converted form from a Societas Europaea company (SE) to a Norwegian public limited
liability company (ASA) and converted the share capital from EUR to NOK. A bonus issue was carried out the same day,
whereby NOK 2,126,326 (EUR 218,961) was transferred from unrestricted equity to share capital. The share capital of
Axactor ASA as of 31 December 2022 was NOK 1,537,920,412 (EUR 158,368,902) consisting of 302,145,464 ordinary
shares at NOK 5.09 per share. Each share has the same rights, and all issued shares are fully paid.
Issued shares and share capital
Number of shares Share capital (EUR)
At 31 Dec 2020 185,395,464 97,040,286
New share issues 116,750,000 61,109,656
At 31 Dec 2021 302,145,464 158,149,942
Bonus issue - 218,961
At 31 Dec 2022 302,145,464 158,368,902
20 largest shareholders at 31 December 2022
Name Shareholding Share %
Geveran Trading Co Ltd 140,784,692 46.6%
Torstein Ingvald Tvenge 10,000,000 3.3%
Ferd AS 7,864,139 2.6%
Skandinaviska Enskilda Banken AB (Nominee) 5,279,467 1.8%
Skandinaviska Enskilda Banken AB 4,500,000 1.5%
Verdipapirfondet Nordea Norge Verdi 4,454,162 1.5%
Nordnet Livsforsikring AS 2,443,779 0.8%
Endre Rangnes 2,017,000 0.7%
Gvepseborg AS 2,009,694 0.7%
Stavern Helse og Forvaltning AS 2,000,000 0.7%
Alpette AS 1,661,643 0.5%
Klotind AS 1,532,704 0.5%
Velde Holding AS 1,500,000 0.5%
Masani AS 1,400,000 0.5%
David Martin Ibeas 1,177,525 0.4%
Andres Lopez Sanchez 1,177,525 0.4%
Latino Invest AS 1,040,000 0.3%
Verdipapirfondet Nordea Avkastning 1,035,709 0.3%
Titas Eiendom AS 1,000,000 0.3%
Kistefos Investment AS 1,000,000 0.3%
Total 20 largest shareholders 193,878,039 64.2%
Other shareholders 108,267,425 35.8%
Total number of shares 302,145,464 100%
Total number of shareholders 9,825
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Shares owned by the Board and Group executive management per 31 December 2022
Name Shareholding Share %
Latino Invest AS
1
1,040,000 0.3%
Johnny Tsolis Vasili
1
4
670,000 0.2%
Terje Mjøs Holding AS
3
500,000 0.2%
Robin Knowles
2
352,921 0.1%
Vibeke Ly
2
203,750 0.1%
Arnt Andre Dullum
2
162,000 0.1%
Nina Mortensen
2
160,000 0.1%
Kyrre Svae
2
150,000 0.0%
Brita Eilertsen
3
19,892 0.0%
1
CEO/related to the CEO of Axactor ASA
2
Member of the Group executive management
3
Member of the Board of Directors/controlled by member of the Board of Directors
4
Holds 300,000 call options that will be settled in cash on 22 June 2023
Note 12 Shares in subsidiaries
Subsidiary company
EUR thousand Ownership Head office Country
Book value in
parent company
Axactor Portfolio Holding AB 100.0% Gothenburg Sweden 169,234
Axactor Platform Holding AB 100.0% Gothenburg Sweden 162,874
Reolux Holding SARL 50.0% Luxembourg Luxembourg -
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Note 13 Other current assets
Other current assets
EUR thousand 2022 2021
Prepaid expenses 809 664
Cash flow hedge derivatives (note 18) 12,367 -
Total other current assets 13,175 664
Note 14 Cash and cash equivalents
For the purpose of the consolidated statement of cash flows, cash and cash equivalents include cash on hand and in
banks. Cash and cash equivalents including restricted cash as shown in the cash flow statement can be reconciled
to the related items in the statement of financial position as follows:
EUR thousand 2022 2021
Cash and cash equivalents 4,046 4,182
Restricted cash 422 402
Total cash and cash equivalents, incl. restricted cash 4,468 4,584
Composistion of the cash per currency
EUR thousand 2022 2021
EUR 2,374 3,171
GBP 2 6
NOK 1,840 1,058
SEK 253 349
Total cash and cash equivalents, incl. restricted cash 4,468 4,584
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Note 15 Loans and receivables to group companies
2022 2021
EUR thousand
Loans to group
companies
1
Receivables group
companies
Liabilities group
companies
Loans to group
companies
1
Receivables group
companies
Liabilities group
companies
Axactor Portfolio Holding AB 210,835 - - 6,417 218 -
Axactor Platform Holding AB 195,627 - - 243,336 313 -
Axactor Norway Holding AS - - - - 4,322 -
Axactor Norway AS - 2 -3 - 718 -1,607
Axactor Capital AS 4,217 20,806 -9 4,452 17,947 -13,761
Axactor Sweden AB - 379 -57 - 435 -120
Axactor Germany Holding GmbH - - - - 2,157 -
Axactor Germany GmbH - 1,419 - - - -17
Axactor Espana SLU - 236 - - -32 -5
Axactor Platform España SA - 2,184 -110 - 1,075 -45
Axactor Capital Luxembourg SARL - - - - 172 -
Axactor Holding Srl 168 - - 156 - -
Axactor Italy SpA - 326 -28 210 - -24
Axactor Capital Italy Srl - - - - 314 -
Axactor Invest 1 SARL - - - - 9,352 -
Reolux Holding SARL 17,881 - - 35,936 50 -
Axactor Finland Holding OY - - - - 270 -
Axactor Finland OY - 48 -53 - - -30
Closing balance at 31 Dec 428,728 25,400 -260 290,507 37,309 -15,607
1
Loans to subsidiaries carries an interest rate of 6.3–7.38%, to be paid at year end
An ECL (Expected Credit Loss) assessment according to IFRS 9 has been carried out. The company has impaired a receivable towards Reolux Holding SARL with 7.4 million in 2022, included in the line item ‘Financial expenses’ in the statement
of profit or loss. The same receivable was impaired with 1.6 million in 2021. There are no other expected credit losses on receivables to group companies.
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Note 16 Interest-bearing loans and borrowings
EUR thousand Currency Nominal value Treasury bonds
Capitalized
loan fees Accrued interest
Carrying
amount, EUR Interest coupon Maturity
Facility
Bond ACR02 (ISIN: NO0010914666) EUR 200,000 -30,550 -2,009 3,133 170,574 3m EURIBOR+700pbs 12.01.2024
Bond ACR03 (ISIN: NO0011093718) EUR 300,000 -18,950 -2,901 925 279,074 3m EURIBOR+535bps 15.09.2026
Total bond loan 500,000 -49,500 -4,910 4,057 449,648
Total loans and borrowings at 31 Dec 2022 500,000 -49,500 -4,910 4,057 449,648
whereof
Non-current borrowings 445,590
Current borrowings 4,057
Maturity Estimated future cash flow within
Currency Carrying amount Total future cash flow 6 months or less 6–12 months 1–2 years 2–5 years
Bond ACR02 (ISIN: NO0010914666) EUR 170,574 186,235 8,224 7,794 170,218 -
Bond ACR03 (ISIN: NO0011093718) EUR 279,074 371,985 11,308 10,840 25,013 324,824
Total bond loan 449,648 558,220 19,531 18,633 195,231 324,824
Total loans and borrowings at 31 Dec 2022 449,648 558,220 19,531 18,633 195,231 324,824
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Change in loans and borrowings from financial activities
EUR thousand Bond loans Total borrowings
Total loans and borrowings at 31 Dec 2020 200,283 200,283
Proceeds from loans and borrowings 500,000 500,000
Repayment of loans and borrowings -200,283 -200,283
Loan fees -10,976 -10,976
Total changes in financial cash flow 288,741 288,741
Change in accrued interest 3,824 3,824
Amortization capitalized loan fees
1
2,345 2,345
Total loans and borrowings at 31 Dec 2021 495,193 495,193
Repayment of loans and borrowings -49,500 -49,500
Total changes in financial cash flow -49,500 -49,500
Change in accrued interest 232 232
Amortization capitalized loan fees
2
3,721 3,721
Total loans and borrowings at 31 Dec 2022 449,648 449,648
1
Includes expensed capitalized loan fees of EUR 0.4 million related to the refinancing of the bond
2
Includes expensed capitalized loan fees of EUR 0.2 million related to repurchasing of bonds
Bond ACR02
The bond was placed at 3m EURIBOR + 7% interest, with maturity date 12 January 2024. The bond is listed on Oslo
Børs (ISIN: NO0010914666).
The following financial covenants apply:
• Interest coverage ratio: >4.0x (Pro-forma adjusted cash EBITDA to net interest expenses)
• Leverage ratio: <4.0x (NIBD to pro-forma adjusted cash EBITDA)
• Net loan to value: <75% (NIBD to total book value all loan portfolios and REOs)
• Net secured loan to value: <65% (secured loans less cash to total book value all loan portfolios and REOs)
Trustee: Nordic Trustee
Bond ACR03
The bond was placed at 3m EURIBOR + 5.35% interest, with maturity date 15 September 2026. The bond is listed on
Oslo Børs (ISIN: NO0011093718).
The following financial covenants apply:
• Interest coverage ratio: >4.0x (Pro-forma adjusted Cash EBITDA to net interest expenses)
• Leverage ratio: <4.0x (NIBD to pro-forma adjusted cash EBITDA)
• Net loan to value: <80% (NIBD to total book value all loan portfolios and REOs)
• Net secured loan to value: <65% (secured loans less cash to total book value all loan portfolios and REOs)
Trustee: Nordic Trustee
During 2022, the company has repurchased part of the outstanding bonds. On 31 December 2022, the company
holds treasury bonds with a nominal value of EUR 49.5 million, split between EUR 30.6 million in ACR02 (ISIN NO
0010914666) and EUR 19.0 million in ACR03 (ISIN NO 0011093718).
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Note 17 Other current liabilities
EUR thousand 2022 2021
Public duties 158 359
Personnel related liabilities 1,541 807
Other accruals 103 467
Total other current liabilities 1,802 1,632
Note 18 Hedge accounting
The Group´s risk management objective is to mitigate the effect of interest rate changes related to its floating
rate instruments. In order to achieve the objective, the Group´s strategy is to use derivatives to limit the impact of
changes in interest rates on the Group´s interest expenses. The Group has applied cash flow hedge accounting to
ensure that the Group´s risk management strategy is reflected in its financial statements.
Cash flow hedges
Interest rate risk in floating rate instruments
The Group has applied cash flow hedge accounting for interest rate risk in order to mitigate the effect of increasing
interest rates on issued loans and therefore limit the impact on the Group´s interest expenses. The hedged items
consist of a proportion of issued floating-rate loans. The hedging instruments consist of interest rate caps. The
hedge ratio for the relationships is defined by the ratio of the principal of the interest rate cap to the designated
proportion of the hedged item, resulting in 100% hedge ratio. The cash flow hedges of interest rate risk on loans are
expected to be highly effective. Potential sources of ineffectiveness have been identified as differences in timing of
cash flows of hedged items and hedging instruments, derivatives used as hedging instruments having a non-nil fair
value at the time of designation and the effect of changes in counterparties’ credit risk on the fair values of hedging
instruments or hedged items.
The Group’s strategy is to hedge between 50% and 70% of interest-bearing debt with a duration of three to five
years. Per 31 December 2022, the strategy is under implementation and the Group is still committed to the strategy
which it expects to fully implement. On 31 December 2022, the Group holds two interest rate caps with a strike
of 0.5% EURIBOR and maturity 15 December 2023. The two contracts hedge the interest risk of EUR 573 million
in borrowings, equaling a hedging ratio of 60%. The hedged items are included as part of current and non-current
interest-bearing debt in the consolidated statement of financial position. Per 31 December 2022, the fair value of the
interest rate hedging derivatives was positive EUR 12.4 million (2021: -0.2 million), reported as part of other current
receivables (2021: other non-current liabilities) in the consolidated statement of financial position.
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The financial instruments designated as hedged items in existing cash flow hedge relationships are:
Hedged items
2022 2021
EUR thousand
Nominal
amount
Nominal amount
designated for
hedge accounting
Cash flow
hedge reserve
Nominal
amount
Nominal amount
designated for
hedge accounting
Cash flow
hedge reserve
Interest rate risk
Floating rate issued loans 573,000 573,000 9,630 200,000 200,000 -230
Total 573,000 573,000 9,630 200,000 200,000 -230
The table below sets out the derivatives designated as hedging instruments in existing cash flow hedge relationships,
and the outcome of the Group´s hedging strategy.
Hedging instruments
2022 2021
EUR thousand Up to 1 year 1–5 years Total Up to 1 year 1–5 years Total
Interest rate caps
Nominal amount 573,000 573,000 2,778 197,222 200,000
Average strike 0.5% 0.5% 0.5% 0.5% 0.5%
The effective portion of changes in the fair value on the hedging instrument that are designated and qualify as cash
flow hedges is recognized in other comprehensive income and accumulated in the cash flow hedge reserve. Hedge
ineffectiveness is, if applicable, recorded as part of financial expenses or financial revenue. There was no material
ineffectiveness in 2022 or 2021. Amounts previously recognized in other comprehensive income and accumulated
in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line
as the recognized hedged item. In 2022, EUR 0.2 million (net of tax) has been reclassified from the cash flows hedge
reserve (OCI) into profit or loss, reducing the interest rate expenses on borrowings reported in note 7 with EUR 0.3
million (pre-tax).
Note 19 Events after the reporting period
There has been no material events after the reporting period for 2022.
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/
Responsibility statement from the Board and the CEO
We confirm to the best of our knowledge that the consolidated financial statements for 2022 have been prepared in accordance with IFRS
as adopted by the European Union, as well as additional information requirements in accordance with the Norwegian Accounting Act, that
the financial statements for the parent company for 2022 have been prepared in accordance with simplified IFRS pursuant to the Norwegian
Accounting Act and regulations regarding simplified application of IFRS issued by the Norwegian Ministry of Finance, and that the information
presented in the financial statements gives a true and fair view of the assets, liabilities, financial position and result of Axactor ASA and the
Axactor Group for the period.
We also confirm to the best of our knowledge that the Annual Report gives a true and fair view of the development, performance and financial
position of Axactor ASA and the Axactor Group, together with a description of the principal risks and uncertainties that they face.
Oslo, 30 March 2023
Kristian Melhuus
Chair
Brita Eilertsen
Board member
Terje Mjøs
Board member
Lars Erich Nilsen
Board member
Kathrine Astrup
Fredriksen
Board member
Johnny Tsolis
CEO
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To the General Meeting of Axactor ASA
Independent Auditor’s Report
Report on the Audit of the Financial
Statements
Opinion
We have audited the financial statements of Axactor ASA, which
comprise:
• the financial statements of the parent company Axactor ASA (the
Company), which comprise the statement of financial position as
at 31 December 2022, the statement of profit or loss, statement
of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended, and notes to
the financial statements, including a summary of significant
accounting policies, and
• the consolidated financial statements of Axactor ASA and its
subsidiaries (the Group), which comprise the consolidated
statement of financial position as at 31 December 2022, the
consolidated statement of profit or loss, consolidated statement
of comprehensive income, consolidated statement of changes
in equity and consolidated statement of cash flows for the year
then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion
• the financial statements comply with applicable statutory
requirements,
• the financial statements give a true and fair view of the financial
position of the Company as at 31 December 2022, and its
financial performance and its cash flows for the year then
ended in accordance with simplified application of international
accounting standards according to section 3-9 of the Norwegian
Accounting Act, and
• the consolidated financial statements give a true and fair view
of the financial position of the Group as at 31 December 2022,
and its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting
Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit
Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards
on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of
the Financial Statements section of our report. We are independent
of the Company and the Group as required by relevant laws and
regulations in Norway and the International Ethics Standards Board
for Accountants’ International Code of Ethics for Professional
Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit
services referred to in the Audit Regulation (537/2014) Article 5.1
have been provided.
We have been the auditor of the Company for 5 years from the
election by the general meeting of the shareholders on 17 October
2018 for the accounting year 2018.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in
the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
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The business activities are largely unchanged compared to last year. We have not identified regulatory changes, transactions or other events that qualified as new Key audit matters for our audit of the 2022 financial
statements. Valuation of debt portfolios continues to be an important focus area in our audit.
Key Audit Matters How our audit addressed the Key Audit Matter
Valuation of debt portfolios
Debt portfolios represent a considerable part of the Group’s total assets. The valuation of the portfolios includes
substantial elements of management judgement. The book value of debt portfolios is determined by projecting
expected future cash flows and discounting them to present value using the effective interest rate as of the date the
portfolios were acquired.
Some of the key assumptions related to the valuation includes the size of expected future cash flows, and timing of
future payments. The estimated timing and size of payments of cash flows require both judgement and experience
to assess, and actual timing and size of payments may differ from the estimates.
Management performed a review every quarter in which they assessed the performance of the Group’s portfolios,
with particular focus directed towards whether portfolios met certain performance criteria. The quarterly procedure
was designed to identify portfolios where adjustments of book value was necessary.
In accordance with IFRS 9, expected credit losses shall be based on forward-looking assessments, so that any
impairment reflects expected losses. The use of models to determine expected credit losses also entails judgment,
specifically related to determination of significant parameters in the model.
During 2022 Axactor, with assistance from external experts, performed extensive work to expand the portfolio
revaluation model. The work included testing of correlation between macroeconomic factors and cash collection.
The purpose of the testing was to identify macroeconomic factors with prediction value on cash collection and
apply current and future macroeconomic factors as input with usage of more than one scenario in subsequent
measurement of expected credit losses. A new expanded revaluation model (macroeconomic overlay model) was
implemented in Q4 2022.
We focused on this area because valuation of debt portfolios carries an inherent risk of both errors due to the large
data materials and complex models necessary to arrive at an estimate, and bias in judgmental assumptions. Both
factors may have a material effect on the Group’s net profit and net book value of total assets.
Notes 2.12.1, 3, 4 and 18 to the consolidated financial statements are relevant for the description of the Group’s debt
portfolios.
We tested the accuracy of initial recognition of portfolios by tracing purchase prices in the contracts back to registration
in the system on a sample basis. We also tested completeness, by reconciling the value per 31 December 2022 of the
debt portfolios from the database, which is used as a source for the performance review, to the booked value. To verify
accuracy of portfolio performance, we sampled and matched reported cash collection to underlying bank statements.
Correspondingly, we obtained cash collection reports and traced the amounts to the database.
We obtained a detailed understanding of management’s review controls, specifically as it relates to the review
management performed quarterly on the performance of the portfolio, and tested its operational effectiveness.
We sampled all portfolios not meeting management’s defined performance criteria at year end. Based on obtained
documentation for these portfolios, including inspection of the underlying figures in the database, we challenged
management’s assumptions and conclusions noted in their review. We discussed with them their assessments and
tested assumptions, and were deemed necessary, obtained and evaluated additional documentation that substantiated
management’s conclusions. We performed recalculation based on our own models to test the completeness and
accuracy of the Group’s, portfolio database.
In connection with Axactor’s testing of macroeconomic relationships, scenarios, and implementation of the
macroeconomic overlay model, we used our own experts and carried out an assessment of Axactor’s methodology
for applying macroeconomic stress testing to their cash flow forecasts. The assessment consisted of a qualitative
analysis of the model and a test of the model build to ensure that it had been implemented in line with their model
documentation. Additionally, as part of our audit procedures, our experts also reviewed the adjustments implemented
at the balance-sheet date related to macroeconomic adjustments and comparing Axactors documentation to their own
experience and knowledge.
Additionally, we assessed qualifications, competence and objectivity of management’s external experts by among other,
reviewing their terms of engagement to determine whether there were unusual terms that might have affected their
objectivity or imposed scope limitations upon their work. Based on this work, we were satisfied that the experts remained
objective and competent, and that the scope of their work was appropriate.
We read the notes and found them to be adequate and give a balanced overview of the different parameters and
judgmental assumptions used.
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Other Information
The Board of Directors and the Managing Director (management)
are responsible for the information in the Board of Directors’ report
and the other information accompanying the financial statements.
The other information comprises information in the annual report,
but does not include the financial statements and our auditor’s
report thereon. Our opinion on the financial statements does not
cover the information in the Board of Directors’ report nor the other
information accompanying the financial statements.
In connection with our audit of the financial statements, our
responsibility is to read the Board of Directors’ report and the other
information accompanying the financial statements. The purpose
is to consider if there is material inconsistency between the Board
of Directors’ report and the other information accompanying the
financial statements and the financial statements or our knowledge
obtained in the audit, or whether the Board of Directors’ report
and the other information accompanying the financial statements
otherwise appear to be materially misstated. We are required to
report if there is a material misstatement in the Board of Directors’
report or the other information accompanying the financial
statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that
the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory
requirements.
Our opinion on the Board of Director’s report applies
correspondingly to the statements on Corporate Governance and
Corporate Social Responsibility.
Responsibilities of Management for
the Financial Statements
Management is responsible for the preparation of financial
statements that give a true and fair view in accordance with
simplified application of international accounting standards
according to the Norwegian Accounting Act section 3-9, and for
the preparation and true and fair view of the consolidated financial
statements of the Group in accordance with International Financial
Reporting Standards as adopted by the EU, and for such internal
control as management determines is necessary to enable the
preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible
for assessing the Company’s and the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise
professional judgment and maintain professional scepticism
throughout the audit. We also:
• identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error. We design
and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal control.
• obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s and the Group’s internal
control.
• evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management.
• conclude on the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on
the Company’s and the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are
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required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company
and the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events in a manner that achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for
our audit opinion.
We communicate with the Board of Directors regarding, among
other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the Audit Committee with a statement that
we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, we
determine those matters that were of most significance in the
audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory
Requirements
Report on Compliance with Requirement on
European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Axactor ASA, we
have performed an assurance engagement to obtain reasonable
assurance about whether the financial statements included in
the annual report, with the file name AxactorASA-2022-12-31-en,
have been prepared, in all material respects, in compliance with
the requirements of the Commission Delegated Regulation
(EU) 2019/815 on the European Single Electronic Format
(ESEF Regulation) and regulation pursuant to Section 5-5 of the
Norwegian Securities Trading Act, which includes requirements
related to the preparation of the annual report in XHTML format,
and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual
report, have been prepared, in all material respects, in compliance
with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual
report in compliance with the ESEF regulation. This responsibility
comprises an adequate process and such internal control as
management determines is necessary.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when
performing an assurance engagement of the ESEF reporting, see:
https://revisorforeningen.no/revisjonsberetninger
Oslo, 30 March 2023
PricewaterhouseCoopers AS
Anne Lene Stensholdt
State Authorised Public Accountant
(This document is signed electronically)
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Alternative performance measures
Alternative performance measures (APMs) used in Axactor
APM Definition Purpose of use Reconciliation IFRS
Gross revenue Total income plus portfolio amortizations and revaluations, and
change in fair value of forward flow commitments
To review the revenue before split into interest and amortization
(for own portfolios)
Total income from consolidated statement of profit or loss plus
portfolio amortizations and revaluations in the consolidated
statement of cash flows and change in fair value of forward flow
commitments
Cash EBITDA from continuing operations EBITDA adjusted for change in fair value of forward flow
commitments, portfolio amortizations and revaluations,
repossessed assets cost of sale and impairment, and calculated
cost of share option program
To reflect cash from continuing operating activities, excluding
timing of taxes paid and movement in working capital
EBITDA from continuing operations (total income minus total
operating expenses) in consolidated statement of profit or loss
adjusted for specified elements from the consolidated statement
of cash flows
Cash EBITDA Cash EBITDA from continuing operations plus EBITDA from
discontinued operations, adjusted for REO cost of sale, including
impairment
To reflect cash from continuing and discontinued operating
activities, excluding timing of taxes paid and movement in
working capital
EBITDA from continuing operations (total income minus total
operating expenses) in consolidated statement of profit or loss
plus EBITDA from discontinued operations according to note 32,
adjusted for specified elements from the consolidated statement
of cash flows
Estimated remaining collection (ERC) Estimated remaining collection express the expected future
cash collection on purchased loan portfolios in nominal values,
over the next 180 months. The ERC does not include sale of
repossessed assets if the assets are already repossessed
ERC is a standard APM within the industry with the purpose to
illustrate the future cash collection including estimated interest
income and opex
Purchased loan portfolios from the consolidated statement of
financial position
Net interest-bearing debt (NIBD) Net interest-bearing debt means the aggregated amount
of interest-bearing debt attributable to both continuing
and discontinued operations, less aggregated amount of
unrestricted cash and cash equivalents, on a consolidated basis
NIBD is used as an indication of the Group’s ability to pay off all
of its debt
Non-current and current portion of interest-bearing debt and cash
and cash equivalents from the consolidated statement of financial
position and as attributable to discontinued operations according
to note 32, adjusted for capitalized loan fees and accrued interest
according to note 25
Return on equity to shareholders Net profit/(loss) after tax from continuing and discontinued
operations attributable to shareholders divided by average
equity for the period attributable to shareholders
Measures the profitability in relation to shareholders’ equity Net profit/(loss) after tax attributable to shareholders of the
parent company from the consolidated statement of profit or loss
and equity attributable to shareholders from the consolidated
statement of changes in equity
Return on equity, continuing operations Net profit/(loss) after tax from continuing operations divided by
average total equity for the period
Measures the profitability in relation to total equity. This APM
has replaced ‘Return on equity, including non- controlling
interests’ to measure the profitability in relation to continuing
operations
Net profit/(loss) after tax from continuing operations from the
consolidated statement of profit or loss and total equity from
the consolidated statement of changes in equity
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Gross revenue
EUR thousand 2022 2021
1
Total income 239,692 158,298
Portfolio amortizations and revaluations 97,218 148,542
Change in fair value of forward flow commitments - 782
Gross revenue 336,911 307,622
1
Comparative figures have been re-presented due to a discontinued operation, see note 32
EBITDA and Cash EBITDA
EUR thousand 2022 2021
1
Total income 239,692 158,298
Total operating expenses -120,738 -117,800
EBITDA from continuing operations 118,955 40,498
Change in working capital related to forward flow commitments - 782
Calculated cost of share option program 462 180
Portfolio amortizations and revaluations 97,218 148,542
Cost of repossessed assets sold, incl. impairment 1,496 2,136
Cash EBITDA from continuing operations 218,130 192,138
EBITDA from discontinued operations -7,008 -16,765
Cost of REOs sold, incl. impairment 18,318 48,379
Cash EBITDA 229,440 223,752
Taxes paid -10,713 -3,261
Change in working capital, excl. forward flow commitments 1,291 4,209
Cash flow from operating activities before NPL and REO investments 220,019 224,700
1
Comparative figures have been re-presented due to a discontinued operation, see note 32
Estimated remaining collection (ERC)
EUR thousand 2022 2021
Purchased loan portfolios 1,252,642 1,095,789
Estimated opex for future collection at time of acquisition 363,858 296,290
Estimated discounted gain 928,920 748,464
Estimated remaining collection (ERC) 2,545,419 2,140,543
Net interest-bearing debt (NIBD)
EUR thousand 2022 2021
Non-current portion of interest-bearing debt from financial position 445,590 834,411
Current portion of interest-bearing debt from financial position 499,709 3,845
Interest-bearing debt, discontinued operations 10,247
Total interest-bearing debt 955,546 838,256
Capitalized loan fees -9,144 -17,566
Accrued interest 4,172 3,845
Cash and cash equivalents from financial position 29,045 38,155
Cash and cash equivalents, discontinued operations 3,607
Net interest-bearing debt (NIBD) 927,865 813,821
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Return on equity to shareholders
EUR thousand 2022 2021
Net profit/(loss) after tax attributable to shareholders of the parent company 36,757 -32,797
Average equity for the period related to shareholders of the parent company 399,433 384,751
Return on equity to shareholders 9.2% -8.5%
Return on equity, continuing operations
EUR thousand 2022 2021
Net profit/(loss) after tax from continuing operations 40,644 -25,393
Average total equity for the period 397,163 407,454
Return on equity, continuing operations 10.2% -6.2%
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Glossary
Terms
Active forecast Forecast of estimated remaining collection on purchased loan portfolios
Board Board of Directors
Cash EBITDA margin Cash EBITDA as a percentage of gross revenue
Chair Chair of the Board of Directors
Contribution margin (%) Total operating expenses (excluding SG&A, IT and corporate cost) as a percentage of total
income
Collection performance Gross collection on purchased loan portfolios in relation to active forecast, including sale of
repossessed assets in relation to book value
Cost-to-collect Cost to collect is calculated as segment operating expenses plus a pro rata allocation
of unallocated operating expenses and unallocated depreciation and amortization. The
segment operating expense is used as allocation key for the unallocated costs
Equity ratio Total equity as a percentage of total equity and liabilities
Forward flow agreement Agreement for future acquisitions of loan portfolios at agreed prices and delivery
Gross IRR The credit adjusted interest rate that makes the net present value of ERC equal to the book
value of purchased loan portfolios, calculated using monthly cash flows over a 180-months
period
Group Axactor ASA and all its subsidiaries
NPL amortization rate Portfolio amortization divided by collection on own portfolios for the NPL segment
NPL cost-to-collect ratio NPL cost to collect divided by NPL total income excluding NPV of changes in collection
forecasts and change in fair value of forward flow commitments
One off portfolio acquisition Acquisition of a single loan portfolio
Opex Total operating expenses
Recovery rate Portion of the original debt repaid
Replacement capex Amount of acquisitions of new loan portfolios needed to keep the book value of purchased
loan portfolios constant compared to last period
Repossession Taking possession of property due to default on payment of loans secured by property
Repossessed assets Property repossessed from secured loan portfolios
SG&A, IT and corporate cost Total operating expenses for overhead functions, such as HR, finance and legal etc
Solution rate Accumulated paid principal amount for the period divided by accumulated collectable
principal amount for the period. Usually expressed on a monthly basis
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AppendicesAppendices | GlossaryAppendices | Glossary
Abbreviations
3PC Third-party collection
AGM Annual general meeting
APM Alternative performance measures
ARM Accounts receivable management
B2B Business to business
B2C Business to consumer
BoD Board of Directors
BS Consolidated statement of financial position (balance sheet)
CF Consolidated statement of cash flows
CGU Cash generating unit
CM Contribution margin
D&A Depreciation and amortization
Dopex Direct operating expenses
EBIT Operating profit/Earnings before interest and tax
EBITDA Earnings before interest, tax, depreciation and amortization
ECL Expected credit loss
EGM Extraordinary general meeting
EPS Earnings per share
ERC Estimated remaining collection
ESG Environmental, social and governance
ESOP Employee stock ownership plan
FSA The financial supervisory authority
FTE Full time equivalent
GHG Greenhouse gas emissions
HQ Headquarters
IFRS International financial reporting standards
LTV Loan to value
NCI Non-controlling interests
NPL Non-performing loan
OB Outstanding balance, the total amount Axactor can collect on claims under management, including
outstanding principal, interest and fees
OCI Consolidated statement of other comprehensive income
P&L Consolidated statement of profit or loss
PCI Purchased credit impaired
PPA Purchase price allocations
REO Real estate owned
ROE Return on equity
SDG Sustainable development goal
SG&A Selling, general & administrative
SPV Special purpose vehicle
VIU Value in use
VPS Verdipapirsentralen/Norwegian central securities depository
WACC Weighted average cost of capital
WAEP Weighted average exercise price
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GRI content index
Axactor has reported in accordance with the GRI Standards for the period from 1 January 2022 to 31 December 2022.
This table shows Axactor’s reporting for 2022 with reference to the GRI Universal Standards 2021.
GRI-Indicator Name Description of the indicator Response in the annual report Source
General information
Organization profile
2-1 Organizational details Name of the organization Axactor ASA
2-6 Activities and workers Activities, products and services provided by the organization This is Axactor -Axactor at a glance
2-1 Organizational details Location of the organization’s headquarters Drammensveien 167, 0277 Oslo, Norway
2-1 Organizational details The organization’s countries of operations Norway, Sweden, Finland, Germany, Spain and Italy
2-1 Organizational details Ownership and legal form Publicly listed limited liability company (Norwegian
allmennaksjeselskap)
https://www.axactor.com/
investor-relations/share-and-debt-
information/main-shareholders
2-6 Activities and workers Sector(s) in which the organization is active This is Axactor -Axactor at a glance and Strategy and financial targets
2-6 Activities and workers Scope and size of the organization This is Axactor -Axactor at a glance and Key figures
2-6 Activities and workers Supply chain Sustainability report – Sustainable value chains
2-6 Activities and workers Significant changes in sector(s) which the organization is active and other relevant
business relationships compared to the previous reporting period
This is Axactor – Key events 2022 and Highlights of the year
2-7 Employees Total number of employees (permanent and temporary) and a breakdown by gender
and region
Sustainability report - People
2-23 Policy commitments Policy commitments for responsible business conduct and respect of human rights Corporate governance report – Section 10
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GRI-Indicator Name Description of the indicator Response in the annual report Source
2-28 Membership associations Industry associations, other memberships associations, and national or
international advocacy organization in which it participates in a significant role
Sustainability report - Ethical debt collection is an essential part of a
well-functioning credit market
Strategy, policies and practices
2-22 Statement on sustainable development
strategy
Statement from the highest governance body or most senior executive of the
organization about the relevance of sustainable development and its strategy for
contributing to this
This is Axactor – Letter from the CEO
Board of Director’s report – Section 4
2-23 Policy commitments Describe the organization's values, principals, standards and norms of behavior Sustainability report – Building a viable financial system for people and
society
2-24 Embedding policy commitments Describe how policies for responsible business conduct are embedded in the
organzation's activities and business relationships
Sustainability report
2-25 Processes to remediate negative
impacts
Describe the organization's commitments and approach has for remedation of
negative impacts it has directly or indirectly caused or contributed to
Sustainability report – Sustainable value chains
2-26 Mechanisms for seeking advice and
raising concerns
Mechanisms for individuals to seek advice on implementing the organization's
policies and practices for responsible business conduct, and raise concerns about
the organization's business conduct
Sustainability report – Sustainable value chains
People – Health and work environment
2-27 Compliance with laws and regulation Total number of significant instances of non-compliance with laws and regulations
during the reporting period, and instance where fines or non-monetary fines were
incurred
Board of Director’s report – Section 4 No violations and no fines
Governance
2-9 Governance structure and composition Governance structure, including commitees of the highest governance body that
are responsible for decision making on and overseeing the management of the
organization's impacts on the economy, environment, and people
Corporate governance report – Section 9
2-10 Nomination and selection of the
highest governance body
Criteria used for nominating and selecting highest governances body members,
including whether and how views of stakeholders, diversity, independence and
competencies relevant to the impacts of the organization are considered
Corporate governance report – Section 7
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GRI-Indicator Name Description of the indicator Response in the annual report Source
2-11 Chair of the highest governance body Describe whether the chair of the highest governance body is also a senior
executive of the organization, and if so, explain their function, the reasons of such
an arrangement and how conflicts of interested are prevented and mitigated
Corporate governance report – Section 8
2-12 Role of the highest governance body
in overseeing the management of
impacts
Describe the role of the highest governance body and its senior executives in
developing, approving and updating the organization's purpose, values, mission
statement, strategies, policies and goals related to sustainable development
Corporate governance report – Section 2
2-12 Role of the highest governance body
in overseeing the management of
impacts
Describe the role of the highest governance body in overseeing the organizations’
due diligence and other processes to identify and manage the organization's impact
of the economy, environment, and people
Corporate governance report – Section 10
2-13 Delegation of responsibility for
managing impacts
Describe how the highest governance body delegates responsibilities for managing
the organization's impacts on economy, environment and people
Sustainability report
2-14 Role of the highest governance body in
sustainability reporting
If the highest governance body is responsible reviewing and approving the reported
information, describe the process
Corporate governance report – Section 4
Sustainability report
2-15 Conflict of interest Processes meant to prevent and mitigate conflicts of interest in the highest
governance body
Corporate governance report – Section 9
2-16 Communcation of critical concerns Whether and how critical concerns are communicated to the highest governance
body, and the nature and number of critical concerns reported during the reporting
period
Corporate governance report – Section 10 No critical concerns reported
during the year
2-17 Collective knowledge of the highest
governance body
Measures taken to advance the collective knowledge, skills, and experience of the
highest governance body on sustainable development
Corporate governance report
2-18 Evaluation of the performance of the
highest governance body
Independent and internal processes to evaluate the performance of the highest
governance body in overseeing the management of the organization's impact on
the economy, environment and people. Describe actions taken in response to the
evaluations
Corporate governance report – Section 7 and 8
https://www.axactor.com/
corporate-governance/
nomination-committee
2-19 Remuneration policies Remuneration policies for members of the highest governance body and senior
executives, and how the remuneration policies for relate to their objectives and
performance in relation to the management of the organization’s impacts on the
economy, environment and people
Corporate governance report – Section 11 and 12
https://www.axactor.com/
corporate-governance/
remuneration
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GRI-Indicator Name Description of the indicator Response in the annual report Source
2-20 Process to determine remuneration Process for designing its remuneration policies and for determining remuneration Corporate governance report – Section 11 and 12 https://www.axactor.com/
corporate-governance/
remuneration
2-21 Annual total compensation ratio Ratio of the annual total compensation for the organization's highest-paid individual
to the median annual total compensation for all employees (excluding the highest-
paid individual), represented as amount and percentage
People – Remuneration and benefits
Stakeholder engagement
2-21 Approach to stakeholder engagement The categories of stakeholders the organization engages with Sustainability report – Material issues and stakeholder engagement
2-29 Approach to stakeholder engagement Description of how the organization identifies stakeholders Sustainability report – Material issues and stakeholder engagement
2-29 Approach to stakeholder engagement Approach to engaging with stakeholders, and how often the organization includes
different stakeholders
Sustainability report – Material issues and stakeholder engagement
2-30 Collective bargaining agreements Percentage of total employees covered by collective bargaining agreements People – Remuneration and benefits
Reporting practices
2-2a Entities included in the organization's
sustainability reporting
Entities included in its sustainability reporting
Financials – Note 20
2-2b Entities included in the organization's
sustainability reporting
Specify the differences between the list of entities included in its financial reporting
and the list included in its sustainability reporting
No differences
2-2c Entities included in the organization's
sustainability reporting
Explain the approach used for consolidating information
Same as for financial reporting. See Financials – Note 2
3-1a Process to determine material topics Describe the process the organization has followed to determine its material topics Global Reporting Initiative 2016 and 2021
3-1b Stakeholders whose views have
informed the process of determining
material topics
Specify the stakeholders and experts whose views have informed the process of
determining its material topics
Sustainability report – Material issues and stakeholder engagement
3-2 List of materials topics List the organization’s material topics (i) Sustainable value creation Ethical debt collection Environment
2-4 Restatements of information Report restatements of information from previous reporting periods N/A
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GRI-Indicator Name Description of the indicator Response in the annual report Source
3-2 List of materials topics Report changes to the list of material topics compared to the previous reporting
period
N/A
2-3 Reporting period, frequency and
contact point
Reporting period for, and the frequency of, the organization's sustainability reporting,
publication date and contact point for questions about the report
Date of publishing: 30.03.2023 Reporting period: 2022 Reporting
frequency: Yearly Contact point: Vibeke Ly
Vibeke.ly@axactor.com
2-5 External assurance External assurance of the organization's sustainability report The organization’s sustainability report has not been externally
assured.
Specific information
1. Sustainable value creation
1.1. Preventing financial crime and corruption
3-3 Management of material topics Description and definition of material topics Sustainability report – Preventing financial crime and corruption
https://www.axactor.com/
corporate-governance/policy-
documents
205-1 GRI 205: Anti-corruption 2016 Operations assessed for risks related to corruption Sustainability report – Preventing financial crime and corruption
https://www.axactor.com/
corporate-governance/policy-
documents
205-2 GRI 205: Anti-corruption 2016 Communication and training about anti-corruption policies and procedures Sustainability report – Preventing financial crime and corruption
205-3 GRI 205: Anti-corruption 2016 Confirmed incidents of corruption and actions taken Sustainability report – Preventing financial crime and corruption No violations and no fines
207-1 GRI 207: Tax 2019 Approach to tax Sustainability report – Preventing financial crime and corruption
https://www.axactor.com/
corporate-governance/policy-
documents
207-2 GRI 207: Tax 2019 Tax governance, control, and risk management Sustainability report – Preventing financial crime and corruption
https://www.axactor.com/
corporate-governance/policy-
documents
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GRI-Indicator Name Description of the indicator Response in the annual report Source
2. Ethical debt collection
2.1. Customer privacy
3-3 Management of material topics Description and definition of material topics Sustainability report – Data privacy and Information security
418-1 GRI 418: Customer privacy 2016 Substantiated complaints concerning breaches of customer privacy and losses of
customer data
Sustainability report – Data privacy and Information security None
2.2. Training and education
3-3 Management of material topics Evaluation of policies and commitments regarding material topics Sustainability report – People
404-1 GRI 404: Training and education 2016 Average hours of training per year per employee Sustainability report – People
404-2 GRI 404: Training and education 2016 Programs for upgrading employee skills and transition assistance programs Sustainability report – People
404-3 GRI 404: Training and education 2016 Percentage of employees receiving regular performance and career development
reviews
Sustainability report – People Close to 100%
2.3. Employment
3-3 Management of material topics Evaluation of policies and commitments regarding material topics Sustainability report – People
401-1 GRI 401: Employment 2016 New employee hires and employee turnover Sustainability report – People
401-3 GRI 401: Employment 2016 Parental leave Sustainability report – People
2.4. Diversity and equal opportunity
3-3 Management of material topics Evaluation of policies and commitments regarding material topics Sustainability report – People
405-1 GRI 405: Diversity and equal
opportunity 2016
Diversity of governance bodies and employees Sustainability report – People
405-2 GRI 405: Diversity and equal
opportunity 2016
Ratio of basic salary and remuneration of women to men Sustainability report – People
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GRI-Indicator Name Description of the indicator Response in the annual report Source
3. Environment
3.1. Emissions
3-3 Management of material topics Description and definition of material topics Sustainability report – Environment
305-1 GRI 305: Emissions 2016 Direct (Scope 1) GHG emissions Sustainability report – Environment
305-2 GRI 305: Emissions 2016 Energy indirect (Scope 2) GHG emissions Sustainability report – Environment
305-3 GRI 305: Emissions 2016 Other indirect (Scope 3) GHG emissions Sustainability report – Environment
305-5 GRI 305: Emissions 2016 Reduction of GHG emissions Sustainability report – Environment
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General ESEF data
Name of reporting entity or other means of identification Axactor ASA
Domicile of entity Norway
Legal form of entity Public limited liability
Country of incorporation Norway
Address of entity’s registered office Drammensveien 167, 0277 Oslo
Principal place of business Oslo, Norway (head office)
Description of nature of entity’s operations and principal activities Debt collection
Name of parent entity Axactor ASA
Name of ultimate parent of group Axactor ASA
Explanation of change in name of reporting entity or other means of identification from end of
preceding reporting period
Change of legal form from SE to ASA
