MCS & DSO becomes...MCS & DSO becomes QUARTERLY / i QERA / NOVEMBER 2019 Financial highlightsFor the...

MCS & DSO b e c o m e s

Q 3 - 1 9Q U A R T E R L Y R E P O R T


Definitions and Glossary

QUARTERLY / iQERA / NOVEMBER 2019

Attributable Cash EBITDA Means our Cash EBITDA for a given period after subtracting distributions to

co-investors for their participation in our consolidated SPVs.

Attributable ERC Refers to Gross ERC after taking into account the pro rata share of such

collections that will be attributable to co-investors pursuant to contractual arrangements with such co-investors in SPVs.

BC Partners Refers to BC Partners LLP.

Cash EBITDA Means our total Cash Revenue for the period, after subtracting professional

fees and services, personnel costs and committed costs.

Cash Revenue Means our Gross Collections for a period after adding the revenue generated

from our third-party servicing business.

Committed costs Expenses related to headquarters (including rent) and IT costs are recorded

in this line item.

Company Means MCS et Associés SAS, a French société par actions simplifiée having

its registered office at 256 bis, rue des Pyrénées, 75020 Paris, France and registered in France under sole identification number 334 537 206 R.C.S. Paris.

FCTs Means fonds commun de titrisation, which are investment funds contractually

organized under French law for the purposes of holding debt portfolios.

Group, MCS, we, our and us Collectively, the Issuer and its direct and indirect subsidiaries including

the SPVs that are consolidated into the Issuer’s consolidated financial statements.

Gross Collections Refer to the cash proceeds received from the debtors related to the debt

portfolios that the Group or its SPVs purchased, before allocation of the pro rata share of Gross Collections attributable to co-investors (if any). Gross Collections are presented prior to factoring any legal fees or other collection activity costs.

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Definitions and Glossary


Gross ERC Refers to our estimated remaining collections on our purchased debt

portfolios, which represents the expected gross cash proceeds over, as applicable, an 84- or 120-month period from our purchased debt portfolios, assuming no additional purchases are made and on an undiscounted basis before taking into account the pro rata share of such collections that will be attributable to co-investors.

Issuer Means Louvre Bidco SAS, a French société par actions simplifiée à associé

unique having its registered office at 256 bis, rue des Pyrénées 75020 Paris, France and registered in France under sole identification number 829 775 600 R.C.S. Paris.

Professional fees and services This line item consists of external legal and other accessory costs (such

as fees paid to bailiffs and notaries) incurred on both a routine and extraordinary basis to support Gross Collections.

SPV Means special purpose vehicle, and as used herein shall include FCTs.

The Issuer At the reporting date of September 30, 2019, the Issuer is Louvre Bidco SAS, a French société par actions simplifiée à associé unique having its registered office at 256 bis, rue des Pyrénées 75020 Paris, France and registered in France under sole identification number 829 775 600 R.C.S. Paris.

On October 18, 2017, the company Louvre Bidco acquired Promontoria MCS Holding (Promontoria MCS Holding group’s parent company).

On October 4, 2018, the company Promontoria MCS Holding acquired the DSO sas company (the parent company of the DSO Group).

In its capacity as an acquisition holding company, Louvre Bidco entirely holds the capital of Promontoria MCS Holding. Louvre Bidco is the new consolidating company of the group since Q4-17.

All financial information disclosed in this document prior to this date relates to the former Promontoria MCS Holding consolidation perimeter.

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Financial highlightsFor the nine months ended September 30, 2019


Key figures at September 30, 2019

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€188m (1) Cash

revenues of

+9% y/y 62% Servicing in Group

Net Revenues (2)

€87m (1) Cash

EBITDA of

+16% y/y 3.1x Leverage ratio on

Cash EBITDA (1)

9 MONTHS

12%

€255mLTM Cash revenues September 30, 2019

€238mLTM Cash Revenues

September 30, 2018

LTM Cash EBITDA


(1) Pro-forma iQera including Sistemia.(2) iQera excluding Sistemia.


Business Review

First of all, we are pleased to announce that our Group has developed and implemented a new commercial branding under the name of iQera. The new branding was confirmed end of September 2019 and a plan of communication was launched for our customers and partners. For the first time, we will comment on our results with this new reference branding.

For the nine months ended September 30, 2019, the main highlights include:

1/ On the revenues side, trends evolved with a significant growth of our debt acquisition revenues - following our new acquisition dynamic from beginning of 2019 - and solid servicing revenuesOn debt purchase activities, year-to-date collections increased by 18% from €85.5 million during the first nine months ended September 30, 2018 to €100.5 million during the first nine months ended September 30, 2019. Following H1 results marked by a lower performance due to lower acquisitions in 2018, Q3 presents the first positive signs of our good level of acquisitions in 2019. We have to underline a specific deal positively impacted collections for €8.6 million in Q3 which also contributed to the good collections performance during the quarter. Performance on a portfolio basis remains strong, and we continue to see collections overperforming our due-diligence expectations.

In parallel, servicing activities generated €88.0 million of revenues, 3% better than the comparable period ended September 30, 2018 at €85.5 million. This solid performance evolution is mainly due to the dynamism of our activities in Italy following the acquisition of Sistemia S.p.A in July 2019, as our local revenues including Sistema increased by 13% (pro-forma figures as Sistemia is not consolidated yet in our IFRS accounts).

The group’s revenues profile remains well balanced, with 62%(1) of the group’s revenues stemming from recurring, capital light activities.

2/ Our commercial dynamics are gathering pace in France and ItalyOn debt purchasing, we reached a very significant level of acquisition as of September 30, 2019 with €68 million of acquisitions, more than €35 million above the level of acquisition reached during the same period in 2018. In addition, new transactions have already been signed during the first weeks of the fourth quarter, further evidencing that the French market continues to be robust and offers good investment opportunities.

On Servicing France, as already underlined end of H1 2019, we have already onboarded and we expect the onboarding of newly signed servicing mandates representing several millions of euros of revenues on a full year basis; these could start producing revenues before the end of 2019.

In both activities, our pipeline is today at its highest ever, and we expect the rest of the year to bring healthy and diversified activity levels – without departing from our strict ressources allocation discipline.



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(1) Pro forma iQera ratio including Sistemia - nine months ended September 30, 2019.




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In Italy, we announced the completion of the acquisition of Sistemia S.p.A. on July 10, 2019. As foreseen, perspectives on Italian market remain good and our new position allows us to get referenced on higher level of potential opportunities. It is also worth noting that in Italy, we are gaining new mandates thanks to joint commercial efforts between our Italian and French teams and we are now structuring the Group organisation locally.

3/ We continue to operate with moderate leverage levels and significant liquidity despite important investments made during Q3During Q3, iQera acquired Sistemia for €72 million and additional debt portfolios for €43 million.

As announced at the end of H1-2019, in connection with the completion of the Sistemia acquisition by Louvre BIDCO SAS, €55.0 million in aggregate principal amount of its senior secured floating rate notes due 2024 were issued under the Company’s existing indenture dated September 28, 2017 governing its existing €270.0 million in aggregate principal amount of 4.25% senior secured notes due 2024 and its existing €120.0 million in aggregate principal amount of its senior secured floating rate notes due 2024. This issuance did not lead our leverage ratios to shift from their targets after the acquisition of Sistemia but will allow us to maintain significant liquidity positions in the context of an active French debt purchase market.

In addition, a vendor loan was issued for €8.7 million to acquire a new important portfolio during the period.

Despite these important investments, the Group LTM Cash EBITDA leverage ratio stood at 3.1x(2) as of September 30, 2019 – well within our target leverage range of 2.5x - 3.5x. We also had €72 million of available cash, on top of a fully untapped €50 million RCF.

(2) Net debt / LTM Cash EBITDA ratio for iQera including Sistemia and synergies realization.



Financial reviewFor the nine months ended September 30, 2019

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Cash EBITDA and Attributable Cash EBITDA For the nine months ended September 30, 2019 including Sistemia figures pro-forma, Cash EBITDA was €87.4 million, as compared to €73.7 million for the nine months ended September 30, 2018, representing an increase of €13.7 million, or 19%. This good performance was due to significant growth of our collections and solid performance in servicing revenues.

For the nine months ended September 30, 2019, collections reached €100.5 million as compared to €85.5 million for the nine months ended September 30, 2019, increasing by 18%. This was due to (i) solid performance in our Backbook in line with last year performance and despite a low level of acquisitions in 2018, (ii) exceptional collections due to €8.6m especially strong revenues following the acquisition of a specific Banking portfolio (iii) improvement of our Frontbook collections following a higher level of acquisition since the beginning of 2019 (+€11.5 million of collections since beginning of 2019).

Our servicing revenues increased by 3% for the nine months ended September 30, 2019 to reach €88.0 million from €85.5 million for the nine months ended September 30, 2018. This solid performance is mainly due to favorable conditions in the Italian market as revenues increased by +13% for the nine months ended September 30, 2019 to reach €28.9 million, as compared to €25.1 million for the nine months ended September 30, 2018.

The following is a reconciliation from Gross Collections to Cash EBITDA and Attributable Cash EBITDA for the periods indicated. The 2019 financial figures are full IFRS for MCS, DSO and Serfin as from January 1st 2019 and pro-forma for the Sistemia acquisition.

(i) Pro-forma perimeter post acquisition of Sistemia:

For the nine months ended Sept. 30

LTM ended Sept. 30

2019 2018 2019 2018IFRS & Proforma (1) IFRS & Proforma (1)

(in thousands of euros) Attributable Gross Collections (2) 99,837 84,572 131,638 120,846Non-attributable Gross Collections (3) 614 888 961 1,255Gross Collections 100,451 85,460 132,599 122,101Servicing revenue 87,973 85,486 122,338 115,869Total cash revenue 188,424 170,946 254,937 237,971Professional fees and services (29,899) (28,857) (40,920) (37,608)Personnel costs (48,994) (46,647) (65,931) (62,751)Committed costs (4) (22,147) (21,734) (29,770) (32,147)Cash EBITDA 87,384 73,709 118,316 105,464Cash distributions to SPV co-investors (5) (786) (810) (1,216) (1,175)Attributable Cash EBITDA 86,598 72,899 117,100 104,290

(1) 9M-2019 is full IFRS for MCS, DSO & Serfin and pro-forma for Sistemia. All 2018 figures are considering a iQera pro-forma view including Serfin and Sistemia historical data. On these historical periods, DSO is consolidated in French GAAP and Serfin & Sistemia in Italian GAAP.

(2) Attributable Gross Collections refers to cash proceeds received from debtors related to debt portfolios that the Company owns or the pro rata share of such proceeds corresponding to its level of ownership in the relevant SPV.

(3) Non-attributable Gross Collections refers to pro rata share of the cash proceeds received from debtors by the SPVs that are owed to minority co-investors in such SPVs.

(4) Figures from 9M-2019 include IFRS 16 new impact on lease debts.(5) Represents cash distributions to co-investors in certain portfolio SPVs.




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(ii) Previous perimeter, i.e., before the acquisition of Sistemia:


LTM ended Sept. 30

2019 2018 2019 2018IFRS & Proforma (1) IFRS & Proforma (1)

(in thousands of euros) Attributable Gross Collections (2) 99,837 84,572 131,638 120,846

Non-attributable Gross Collections (3) 614 888 961 1,255

Gross Collections 100,451 85,460 132,599 122,101

Servicing revenue 68,458 68,512 93,322 91,430

Total cash revenue 168,909 153,972 225,921 213,532

Professional fees and services (21,063) (21,579) (28,046) (27,192)

Personnel costs (46,779) (44,608) (62,672) (59,790)

Committed costs (4) (20,355) (19,938) (26,726) (29,241)

Cash EBITDA 80,712 67,846 108,477 97,308

Cash distributions to SPV co-investors (5) (786) (810) (1,216) (1,175)

Attributable Cash EBITDA 79,926 67,036 107,260 96,133

(1) 9M-2019 is full IFRS including DSO & Serfin and excluding Sistemia. All 2018 figures are considering a iQera pro-forma view excluding Sistemia historical data. On 2018 period, DSO & Serfin accounts are consolidated in French & Italian GAAP.

(2) Attributable Gross Collections refers to cash proceeds received from debtors related to debt portfolios that the Company owns or the pro rata share of such proceeds corresponding to its level of ownership in the relevant SPV.

(3) Non-attributable Gross Collections refers to pro rata share of the cash proceeds received from debtors by the SPVs that are owed to minority co-investors in such SPVs.

(4) Figures from 9M-2019 include IFRS 16 new impact on lease debts.(5) Represents cash distributions to co-investors in certain portfolio SPVs.




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Sistemia is considered to be an acquired asset but its results are not consolidated as of September 30, 2019 in our IFRS accounts. Therefore, following figures are excluding Sistemia. On this basis, our unaudited consolidated financial statements, on a nine months basis, are the following:


2019 2018

IFRS (1)

(in thousands of euros)

Income from loans 55,213 44,453

Other income 67,057 13,925

Total revenue 122,270 58,378

Professional fees and services (21,063) (6,347)

Personnel costs (46,888) (16,909)

Committed costs (2) (20,418) (9,685)

Operating margin 33,901 25,437

Other income and expenses (7,732) (1,716)

Net operating income 26,169 23,722

Financial income 437 40

Financial expenses (16,937) (11,963)

Net financial income/(loss) (16,500) (11,923)

Share in income of associates - -

Pre-tax income 9,669 11,798

Income tax (1,552) (2,770)

Net income/(loss) for the period 8,116 9,029

Minority interests (513) 26

Net income/(loss) for the period, Group Share 7,603 9,055

(1) Sistemia not consolidated. Therefore, 9M-2019 is full IFRS including MCS, DSO & Serfin. 9M-2018 is full IFRS on MCS scope only. (2) Committed costs for the nine months ended September 30, 2018 excluded non-recurring costs related to the setup of

MC2S, an SPV owned by the Group that carries out certain of its debt servicing activities. In addition, figures from 9M-2019 include IFRS 16 new impact on lease debts.

Income from loans increased by €10.8 million, or 24%, to €55.2 million for the nine months ended September 30, 2019, from €44.5 million for the nine months ended September 30, 2018. Beyond consolidation perimeter impact (2018-9M IFRS figures do not include DSO & Serfin data), the increase on income from loans is mainly linked to the solid level of collections despite a higher level of portfolio amortization following the good level of acquisition in 2019 (+€23.9 million amortization on 9M-2019 of which +€14.7 million on MCS only).




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Other income increased by €53.1 million, to €67.1 million for the nine months ended September 30, 2019, from €13.9 million for the nine months ended September 30, 2018. The increase is due to the DSO & Serfin contribution representing €55.6 million for the first nine months of 2019. On a comparable basis, revenues for the nine months ended September 30, 2019 are stable despite CIF Servicing revenues (ex-MCS perimeter) attrition.

As a result of the foregoing factors, total revenue increased by €63.9 million, or 109%, to €122.3 million for the nine months ended September 30, 2019, from €58.4 million for the nine months ended September 30, 2018.

Professional fees and servicesProfessional fees and services increased by €14.7 million to €21.1 million for the nine months ended September 30, 2019, from €6.3 million for the nine months ended September 30, 2018. No major impact to underline despite activity growth and current integration process for DSO & Serfin. As a percentage of total revenues, professional fees and services increased by 6.4 percentage points to 17.2% for the nine months ended September 30, 2019 from 10.9% for the nine months ended September 30, 2018. This increase is directly linked to a better balancing between debt acquisition and servicing activities following DSO and Serfin integration, servicing activity having an inherently higher professional fees use. This ratio is slightly improving from Q2 2019 as debt acquisition activities increased in Q3 whereas servicing activities remained stable.

Personnel costs level has changed due to rebalancing of the business between debt collection and debt servicingPersonnel costs increased by €30.0 million to €46.9 million for the nine months ended September 30, 2019 from €16.9 million for the nine months ended September 30, 2018. First 9 months of 2019 also included some synergies impacts in accordance with our plans. As a percentage of total revenues, personnel costs increased by 9.4 percentage points to 38.3% for the nine months ended September 30, 2019, from 29.0% for the nine months ended September 30, 2018. The increase is mainly due to (i) DSO and Serfin higher weight of personnel costs and (ii) to the alignment of accounting methodology on Personnel costs.

Committed costs increase in absolute value but in line with 2018 as a percentage of revenuesCommitted costs increased by €10.7 million to €20.4 million for the nine months ended September 30, 2019, from €9.7 million for the nine months ended September 30, 2018. This increase in terms of value is fully due to DSO & Serfin integration. As a percentage of total revenue, committed costs remained stable at 16.7% for the nine months ended September 30, 2019 from 16.6% for the nine months ended September 30, 2018.

Other income and expenses increased by €6.0 million, to €7.7 million for the nine months ended September 30, 2019, from €1.7 million for the nine months ended September 30,2018. This is mainly due to IT projects that were finalized at the end of 2018, which we have started to amortize in 2019.




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Net financial loss increased by €4.6 million, or 42%, to €16.5 million for the nine months ended September 30, 2019, from €11.9 million for the nine months ended September 30, 2018. This increase of financial expenses is due to the interest of our bonds resulting from the additional €120m in debt issued at the end of Q3 2018 for the acquisition of DSO Group. In Q3-2019, €55.0 million of additional senior secured floating rate notes due 2024 were issued under the Company’s existing indenture dated September 28, 2017 governing its existing €270.0 million in aggregate principal amount of 4.25% senior secured notes due 2024 and its existing €120.0 million in aggregate principal amount of its senior secured floating rate notes due 2024.

As a result of the foregoing factors, Net income for the period decreased by €0.9 million, to €8.1 million for the nine months ended September 30, 2019, from €9.0 million for the nine months ended September 30, 2018.

Cash Flows evolutionThe following table sets forth the statement of consolidated cash flows of Louvre Bidco SAS for the unaudited condensed.


2019 2018

IFRS Pro forma

(unaudited)

(in thousands of €) (1) (1)

Net cash flows from operating activities 71,006 59,273

Net cash flows for investment activities (144,907) (35,330)

Net cash flows for financing activities 42,507 (7,467)

Change in net cash position (31,394) 14,399

Opening cash and cash equivalents 104,025 67,648

Closing cash and cash equivalents 72,631 82,048

(1) 9M-2019 is full IFRS including DSO & Serfin. All 2018 figures are considering a iQera pro-forma view excluding Sistemia.

Net cash flows from operating activitiesNet cash flows from operating activities for the nine months ended September 30, 2019 were recorded at €71.0 million, as compared to €59.3 million for the nine months ended September 30, 2018.

The variance of €9.7 million observed in 2019 between the Cash EBITDA of €80.7 million and the Net cash flows from operating activities of €71.0 million is mainly explained by (i) the increase of working capital needs by €7.8 million mostly coming from DSO Servicing perimeter and (ii) adjustment and repayment of debts for €1.3 million.




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Net cash flows for investment activitiesNet cash flows used for investment activities for the nine months ended September 30, 2019 were recorded at -€144.9 million, as compared to -€35.3 million for the nine months ended September 30, 2018, mainly linked to (i) a much higher level of portfolio acquisition in 2019 (€68.4 million) and (ii) acquisition of Sistemia (€72 million).

Net cash flows for financing activitiesNet cash flows used for financing activities for the nine months ended September 30, 2019 were recorded at an inflow of €42.5 million, as compared to an outflow of €7.5 million for the nine months ended September 30, 2018 and included the tap issuance of €55 million for the Sistemia acquisition and an additional vendor loan of €8.7 million entered into for a specific portfolio acquisition financing.




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Detailed Cash Flow statement as of September 30, 2019For the nine months

ended Sept. 30,2019

(in thousands of euros) IFRSFlows from operating activitiesNet income / (loss) for the period 8,116Share in income of associates -Dividends received from associates -Non-cash expenses 6,825Deferred tax expense 1,552Neutralization of financial cash flows 16,550Cash flow from operating activities before change in working capital 33,044Remeasurement of receivables (3,685)Amortization of receivables 50,322Disposal of receivables 479Remeasurement of debts (563)Increase in debts -Repayment of debts (749)Change in operating working capital (excluding portfolio) (7,842)Change in operating working capital (Portfolio) 37,962

Net cash flows from operating activities 71,006

Flows for investment operationsAcquisitions of portfolios (68,447)Proceeds from sales of subsidiaries -Acquisition of subsidiaries, net of cash acquired 925Proceeds from sales of subsidiaries -Acquisitions of intangible assets (2,613)Acquisitions of tangible assets (2,238)Acquisitions of investments (41,392)Sale of intangible assets -Sale of tangible assets -Sale of investments -Other movements (31,142)Impact of changes in the scope of consolidation -Net cash flows for investment activities (144,907)

Flows for financing operationDividends paid to the company shareholders (12)Capital increase for cash -Increase in long-term borrowing 63,707Repayments made on long-term borrowing (858)Change in bank overdrafts -Increase of lease debt -Decrease of lease debt (2,423)Other changes (17,907)Financial cash flows -Net cash from financing activities 42,507

Net change in cash and cash equivalents (31,394)Opening cash and cash equivalents 104,025Closing cash and cash equivalents 72,631




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Consolidated Balance Sheet Data


As of Dec. 31

2019 2018

IFRS

(unaudited) (1) (unaudited) (1)

(in thousands of euros) Notes

Assets

Goodwill 348,275 340,506

Other intangible assets 8,958 8,681

Tangible assets 6,871 6,553

Right of use 15,091 -

Purchased loans portfolio 139,257 128,424 A

Investment in associates - -

Financial assets 41,397 11,657

Other non-current assets 1,124 1,119

Deferred tax assets - 694

Total non-current assets 560,973 497,635

Purchased loans portfolio 102,336 89,132 A

Other receivables 72,692 28,291

Cash and cash equivalents 72,631 104,025

Total current assets 247,660 221,448

Total assets 808,633 719,082




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Consolidated Balance Sheet Data

Shareholders’ Equity and Liabilities

Equity

Share capital 234,385 226,814

Issue Premiums - -

Consolidated reserves - -

Result for the financial year - -

Total equity attributable to the shareholders 234,385 226,814 B

Minority interests 4,148 2,474

Total shareholders’ equity 238,533 229,288 B

Non-Current liabilities

Pension and other post-employment benefit 1,835 567

Provisions for other liabilities 6,559 6,643

Convertible bond loan - -

Long term financial debt 470,392 406,134 C

Long-term lease debt 12,169 - C

Co-investors liabilities 455 1,192

Deferred tax liabilities 19,074 18,254

Other non-current liabilities 1,337 1,580

Total non current liabilities 511,821 434,370

Current liabilities

Short-term financial debt 3,537 5,081 C

Short-term lease debt 2,865 - C

Debt towards co-investors 759 1,334

Trade and other accounts payable 17,857 15,603

Other current liabilities 33,261 33,406

Total current liabilities 58,279 55,424

Total liabilities and shareholders’ equity 808,633 719,082

(1) 9M-2019 is full IFRS including DSO & Serfin, Sistemia being considered as financial asset. On December, 2018, all figures are considering MCS&DSO IFRS figures, Serfin being considerated as financial asset.


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NOTE A: Loan portfolio

Current assets are calculated by discounting the cash inflows expected to arise from the assets within 12 months of the end of the reporting period. Any other amounts are classified as non-current items.

(in thousands of euros) September 30, 2019 December 31, 2018

January 1st 217,556 176,962

Acquisitions 68,447 22,210

Disposals (479) (141)

Changes in scope 2,706 54,676

Impairment - -

Amortization (50,322) (42,958)

Revaluation 3,685 6,807

Foreign exchange effect - -

End of period 241,593 217,556

Current assets 102,336 89,132

Non-current assets 139,257 128,424




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(in thousands of euros)

Share capital

Issue preniums

Consolidated reserves

Translation reserves

Actuarial gains and losses on post-employ-

ment benefits obligations

Attributable to the

shareholders of the parent

company

Non controlling

interests

Total

January 1, 2018 160,000 - (2,040) - - 157,960 22 157,982

Dividends paid - - - - - -

Capital increase 60,833 3,825 - - - 64,658 - 64,658

Net income / (loss) for the period

- - 4,020 - - 4,020 149 4,169

Payment of dividends - - - - - - (20) (20)

Effect of changes in consolidation scope

- - - - - - 2,331 2,331

Other comprehensive income

- - - 17 225 242 (8) 234

Other mouvements - - (66) - - (66) - (66)

December 31, 2018 220,833 3,825 1,914 17 225 226,814 2,474 229,288

Dividends paid - - - - - -

Capital increase - - - - - - - -

Net income / (loss) for the period

- - 7,603 - - 7,603 513 8,116

Payment of dividends - - - - - - (11) (11)

Effect of changes in consolidation scope

- - - - - - 1,172 1,172

Other omprehensive income

- - - (19) - (19) (19)

Other mouvements - - (12) - - (12) - (12)

September 30, 2019 220,833 3,825 9,505 (2) 225 234,386 4,148 238,535

NOTE B: Evolution consolidated equity



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NOTE C: NET DEBT

Currency: € m Sep-19 Synergies impact (5) Q3 2019 with synergies

High Yield Bond (1) 432.8 - 432.8

Other loans (2) 13.8 - 13.8

Co-investors’ Debt 1.3 - 1.3

Others (3) 7.5 - 7.5

Gross Debt (IFRS) 455.4 - 455.4

Cash including restricted cash 82.8 - 82.8

Restricted cash 10.9 - 10.9

Cash and cash equivalents 71.9 - 71.9

Net Debt (IFRS) 383.4 - 383.4

LTM CASH EBITDA (4) 118.3 3.4 121.7

Leverage on Cash EBITDA 3.2x - 3.1x

(1) High Yield Bonds includes additional bond subscribed for Sistemia acquisition.(2) Other loans are referring to DSO (BPI), VL portfolio acquisition for €8.7m and Serfin loan.(3) Others are referring to profit sharing accruals and EFFICO put for €6.1m.(4) LTM Cash EBITDA includes Sistemia proforma figures.(5) Synergies correspond to the synergies plan figures to be generated from 2019 following DSO acquisition. Synergies already

materialized have been restated. Synergies secured end of 9M-2019 reached €4.7m.

Gross ERCGross ERC refers to the estimated remaining collections that we have recorded based on the debt portfolios we own or have rights to collect at some point in time, before taking into account the pro rata share of such collections that will be attributable to any co-investors.

At September 30, 2019, iQera 120-Month Gross ERC decreased to €397.5 million versus €403 million as of December 31, 2018, down 1%, or €5.5 million. ERC increased by €15 million compared to the previous quarter following the higher level of acquisitions since beginning of 2019. Nevertheless, we have continued to apply a deliberately conservative approach to portfolio revaluations as most recent vintages are still valued based on due diligence forecasts, despite strong operating performance since the portfolios were acquired.

The table below sets forth our Gross ERC for the periods indicated.

As of September 30 As of December 31

(millions of euros) 2019 2018

84m Gross ERC 352.8 354.2

120m Gross ERC 397.5 403.4 (1) ERC excluding Serfin



Our risks are described in more detail under the caption “Risk Factors” in the offering memorandum dated September 18, 2018 related to the issuance of our Senior Secured Floating Rate Notes due 2024 (€120m) and have been updated in our 2018 Annual Report.

The Group’s risks include, among other things, strategic risks related to economic development and acquisitions, regulatory changes, possible errors and omissions and financial risks such as market risk, funding risk and credit risk inherent to a debt purchasing business, as well as counterparty risk for our third-party servicing business.


Significant risks and uncertainties

This Quarterly Report contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and the securities laws of other jurisdictions. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes”, “estimates”, “aims”, “targets”, “anticipates”, “expects”, “intends”, “plans”,“continues”, “ongoing”, “potential”, “product”, “projects”, “guidance”, “seeks”, “may”, “will”, “could”, “would”, “should” or, in each case, their negative, or other variations or comparable terminology or by discussions of strategies, plans, objectives, targets, goals, future events or intentions. These forward-looking statements include matters that are not historical facts. They appear in a number of places throughout this Quarterly Report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, competition in areas of our business, outlook and growth prospects, strategies and the industry in which we operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity and the development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate are consistent with the forward-looking statements contained in this Quarterly Report, those results or developments may not be indicative of results or developments in subsequent periods.

Forward Looking statements

19


For a description of important factors that could cause those material differences, we direct you to the risk factors disclosed in our Annual Report.

Any forward-looking statements in this Quarterly Report are based on plans, estimates and projections as they are currently available to our management. We undertake no obligation, and do not expect, to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this Quarterly Report.


Forward Looking statements

Contacts / Information

LOUVRE BIDCO256 bis rue des Pyrénées 75020 Paris+331 53 30 11 [email protected]

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