Interim report January – September 2015

July–September year-on-year

• Gross cash collections increased 52 per cent to SEK 974m (640)
• Total revenue increased 40 per cent to SEK 590m (422)
• EBIT totalled SEK 187m (127)
• The EBIT margin was 32 per cent (30)
• Profit before tax totalled SEK 94m (65)
• Portfolio acquisitions totalled SEK 1,982m (353)
• Basic earnings per share were SEK 0.93 (0.85) Diluted earnings per share were SEK 0.91 (0.72)1)
• Financial net amounted to an expense of SEK 93m (–62).

30 September year-on-year

• Carrying value of acquired loans increased 42 per cent to SEK 10,639m (7,504)2)
• Gross 120-month ERC (Estimated Remaining Collections) increased 43 per cent to SEK 18,082m (12,657)
• The total capital ratio improved to 15.66 per cent (12.52)
• The CET1 ratio was 12.98 per cent (9.02)

1) Includes effect of 929,627 outstanding warrants.

2) Including run-off consumer loan portfolios and portfolios held in joint venture.

Strong earnings trend and high acquisition rate

Hoist Finance continues its positive, stable development, with record high acquisition volumes during the third quarter. Gross cash collections as well as total revenue saw considerable growth. This is primarily due to the contribution of portfolio acquisition made in 2014 and our dynamically improving operational leverage.

EBIT is up 48 per cent year-on-year. The EBIT margin has improved to 32 per cent notwithstanding transaction costs for the acquisition of Compello and negative portfolio revaluations; with the majority relating to Poland.

High market activity and increased presence in attractive debt segment

The quarter was distinguished by a high acquisition level, with transactions on several markets. A large proportion of the volume acquired this quarter is attributed to the acquisition of Compello Holding Ltd. As we have previously communicated, the acquisition includes a diversified portfolio of claims on banks, comprised of over one million non-performing loans from 19 financial institutions and an established call centre with 178 employees.

As with some of our previous portfolio acquisitions, parts of Compello will initially involve a higher share of legal collections, which increases our operating expenses in the short term. This is a natural part of our operations and fully in line with our strategy regarding certain portfolios, aimed at optimising profitability over time.

We also strengthened our position in the non-consumer segment with the acquisition of an SME portfolio in Italy in early October. We have previously managed this type of debt, albeit on a smaller scale, and we believe that this is an emerging asset class that fits well with our other loan portfolios. The transaction is well aligned with our strategy to enhance collaboration with our partners.

A more efficient organisational structure

We have decided to divide operational activities into three regions in order to improve organisational efficiency and strengthen our position in Europe. This will better equip Hoist Finance to achieve its long-term goals and benefit from opportunities available in the market, and will involve a new method of segment reporting next year.

Opportunities in a growing market

The long-term market for non-performing consumer loans and other debt segments is growing steadily. With our many years of experience, broad geographic presence and well-developed collaborations with several major European banks, we see very good opportunities for growth in coming years. Our focus remains on growing and developing the markets where we currently operate while actively evaluating various business opportunities in other Europe areas.

Outlook

Hoist Finance continues to defend and strengthen its position as a leading debt restructuring partner to major international banks. Developments to date, reinforce our confidence in our ability to deliver our medium term financial targets.

We also see good prospects in 2015 for achieving a total acquisition volumes that well exceeds last year’s.

Jörgen Olsson

CEO

Hoist Finance AB (publ)

Hoist Finance AB (publ) (the “Company” or the “Parent”) is the parent company of the Hoist Finance group of companies (“Hoist Finance”). The Company’s wholly owned subsidiary, Hoist Kredit AB (publ) (“Hoist Kredit”) is a regulated credit market company. Hence, Hoist Finance produces financial statements in accordance with the Swedish Annual Accounts Act for Credit Institutions and Securities Companies. In order to assess the operational performance of the debt purchasing and collection operations and to facilitate comparison with our competitors, Hoist Finance supplements its statutory financial statements with an operating income statement. The operating income statement is prepared based on the accounting and valuation principles used in the statutory financial statements, with no amendments or adjustments thereto.

The information in this interim report has been published pursuant to the Swedish Securities Market Act and/or Swedish Financial Instruments Trading Act. This information was submitted for publication on 29 October 2015 at 8.00 A.M. (CET).

Anne Rhenman Eklund

Group Head of Communications and IR

Phone: +46 8 555 177 45

About Hoist Finance

Hoist Finance is a leading debt restructuring partner to international banks and financial institutions, offering a broad spectrum of advanced solutions for acquisition and management of non-performing unsecured consumer loans. Hoist Finance operates through eleven in-house collection centers across Europe, complemented by local external debt servicing partners. The total carrying value of Hoist Finance’s acquired loans was approximately SEK 8.9 billion as per 31 December 2014. The parent company Hoist Finance AB (publ) is listed on Nasdaq Stockholm Mid-Cap list and its subsidiary Hoist Kredit AB (publ) is a regulated “Credit Market Company” under the supervision of the Swedish Financial Supervisory Authority (Sw. Finansinspektionen). In Sweden, the company offers internet-based savings deposit services through HoistSpar, with around 65,000 active accounts.