Good morning, and welcome to Axaktor's First Quarter Presentation for 2021. We will divide this presentation into 5 parts. I would like to start by giving a short recap of who is at SAKTOR. It will only take a few minutes, and I hope that everyone can find such a recap valuable, both the ones that knows us well from before, investors that has recently entered our share and potential new investors. After the recap, I will go through Q1 main events followed by the financial highlights.
We will round off the presentation with an updated outlook and a Q and A session. As always, you may ask questions live after I'm done presenting or through the available chat function. Now Let us move to Slide 3 for a short company introduction. Axocta was established in December 2015 with the headquarter in Oslo. Our main focus is on collection and acquisition of nonperforming loans from financial institutions, meaning we are both buying nonperforming loans and do collection on behalf of banks and other financial customers.
Akstagtir operates in 6 European countries: Spain, Germany, Italy, Norway, Sweden and Finland, and currently we are just below 1100 FTE. We have been one of the largest purchasers of NPL debt in Europe over the last few years, and we have done portfolio acquisitions north of €600,000,000 for 2019 2020 combined. The company is listed at Oslo Stock Exchange and our main shareholder, Geberron, owns approximately 40% of the company. Please go to the next slide for more details on Axocto's strategic positioning. When Axocto was established, We have a clear idea regarding our strategic positioning.
In brief, it was the following. Cost leadership was a clear strategic target. We carefully selected 6 markets where we believe to have the best risk reward and the main focus were on fresh business to consumer unsecured debt within the Bank of Finance segment. The startup approach was also simple, acquisition of a relatively small platform company As a bridgehead into a new market, we immediately replaced main systems and process to the unified Vomaxaxel platform. And we used our strong balance sheet to scale the business organically in both NPL and PPP.
As you can see, the result when it comes to the cost position has been satisfying. Here it is important to focus on the trend as we obviously The higher cost to collect versus income the 1st year of operations due to scale disadvantage. We expect the ratio to continue to go down over time As we gain more scale of that and we consider our cost position to be one of our key competitive advantages also in the future. Let's move to Slide 5, where I'll present the more key contributors that will improve our return on equity over time. The first 4 to 5 years of operations are toktur focused on aggressive growth, market entries and to establish an efficient IT and operations platform.
We are now into a new and second phase where the focus has shifted towards profitability, operational excellence and controlled growth. We are also aiming to pay dividends as return on equity improves. Aksaktoy has at least 5 areas where we continue to improve in order to increase return on equity. The first one is cost to collect. Even though we have one of the lowest cost to collect ratios in the NPL industry, we still need to keep high attention on continuous cost improvement.
Several of our competitors have reduced cost reduction programs the last year, and they are also trying to get closer to our Vonage Sacker way of thinking with streamlining operations and to implement cloud based IT systems. Our cost to collect will continue to decrease As you are growing the top line more than the costs, basically taking out scale ahead. But as you will learn more about later in this presentation, we have introduced and to a large Aart already implemented a new cost reduction program to further trim our cost base. More details will be given under the part Main Event in Q1. Aksochtaert aims to feed volumes into the collection platform, not only through acquisitions of NPLs, but also by growing our 3TC business.
3TC is capitalized, recurring business, which will contribute to increased return on equity as It reaches a certain scale in each respective country. 3PC is also an important source to gain high quality data on fresh claims, which can be used in validations of portfolio to reduce risk and acquisition. Currently, Spain is the only acceptable country where we have significant scale in our 3 to 3 business, but we see positive development in several other countries. During the last 12 months, we have changed our sales strategy focusing primarily on bank and finance clients. An important part in being a successful 3PC company is to create a collection platform that can deliver satisfying collection performance, high level of compliance and comply with a significant reporting requirement that is expected by financial institutions.
We are therefore pleased to see that PyTorchter is doing well in so called benchmarks with our collection company, but we still have a significant improvement potential in this area. The 3rd area I would like to highlight is the improved IRR on portfolios acquired by FactSet. The IRR uplift comes mainly through 2 different sources. Firstly, the majority of all new portfolios acquired over the last 2 years Has a higher IRR than the average IRR on our back book. This means that everything else equal, The price reduction we have seen and are seeing in the market will improve Axaltor's return on equity.
But it is important to remember that the new prices are blended in over time and the positive effect will become visible in our financials gradually. Secondly, Akstagter is prioritizing portfolios where we have in-depth knowledge about the claims either from previous acquisitions from the seller or through handling of the portfolio or similar portfolios on 3PC contract. Over time, this will reduce the risk of doing errors in portfolio acquisition, which is obviously very important for the realized IRR level for our NPL business. In addition to operational contributors, AkSachter has improved potential on funding costs and what we call over maturity effect. If I start with the first one, funding costs.
Given the fact that TaxActor is still a young company, GM has significant start up costs on the funding side, both when borrowing from bank and when addressing the Nordic bond market. We still have a disadvantage compared to several of our competitors when it comes to funding, but we are working hard to reduce the gap. We did manage to reduce the average funding cost through the restructuring exercise we finalized in Q1, but we still should be able to reduce this further over time. Currently, we are working on establishing a credit rating that we expect to be finalized in the second half of twenty twenty one. With the rating, Akzocto will have flexibility to reach a wider investor base for our bond, both in the Nordics and potentially the European bond market.
After the restructuring, we have more flexibility to refinance parts of our balance sheet If the bond market reveals attractive opportunities and hopefully the next time we address the market, we will not be in an epidemic situation. Other maturity effects consist of at least 3 different elements. The effective tax rate is still too high, but as we are gradually getting in positive earnings In most of our legal entities, effective tax rate will be reduced. Simplification of our legal structure will contribute to both lower cost on administration, but also to improve our tax position. The last item I would like to address It's that we are phasing out the non profitable retail segment and this will have a positive effect on return on equity as well.
To summarize, Axocto has several contributors Improve return on equity going forward, and we are working very hard every day with both small and large improvements to realize this potential. This was just a short recap of Ataktor and I will now move to Slide 7 to present the main events in Q1. Axocto was still affected by the pandemic during Q1, Q1 was another step in the right direction towards normality on underlying operational performance. Last year, negative effects from the pandemic started in March, but this year we have had COVID affecting us the entire quarter in all of our countries. However, luckily, so much lesser extent than what we experienced with the lockdowns last year.
Year over year, we saw improvements on gross collection, which was up 7%. The total income was up 10% and EBITDA up a healthy twenty 6% compared to last year. Cash EBITDA came in at €52,000,000 which was also 8% higher than Q1 last year. As in previous quarters, the financials were affected by one off effect, obviously of a different nature than in 2020. I will come back with more details, but restructuring costs related So our cost reduction program was one of them.
Furthermore, unrealized FX loss had negative impact on profit before tax and then the return on equity for the quarter. Let us move to Slide 8 for a final reminder of the balance sheet restructuring that was concluded in I guess some of you know this by heart now, but since this was one of the most important events we have in the quarter, I will quickly summarize the transaction and its main effect. A stock raised €50,000,000 in new equity. It was a combination of SEK 30,000,000 in a private placement and SEK 20,000,000 in a repair issuance. We acquired Geviran 50% stake in our daughter company, Axato Invest 1, and we refinance all major credit facilities.
The main motivation for the transaction was to reduce complexity and simplify the structure, extend maturities of both the bank facilities and on our unsecured bond, reduce funding costs and to increase investment capacity. Our equity ratio is also strengthened as a result of the transaction. On Page 9, I will give more details about the new cost Reduction program being produced in December. The program is targeting an annual saving of approximately EUR 5,000,000 and most of the cost saving initiatives will be implemented during first half. We expect full saving impact from Q4 this year.
As part of the cost reduction program, we are doing a site consolidation in Spain, resulting in shutting down 3 of our offices, Seville, Bintbrau and Zaragoza. In addition, a large number of other initiatives will be implemented such as optimizing the organization in terms of employees, evaluating and renegotiating vendor contracts and outsourcing of noncore tasks. Such initiatives Usually comes at the cost and these ones are no exception. We expect that the total restructuring cost will amount to €4,200,000 where EUR 3,200,000 has been booked in Q1 and the estimated remaining EUR 1,000,000 will be booked in Q2. I will now move to the next slide to give a short status on the 3PC market.
Even though the development in the 3PC market is maybe not the main event, we find it important to update the investors on the situation. First, I would like to say that Axocta has not lost any significant PTC customers during the last 12 months. However, it is True that the volumes we have received from our customers has been lower than expected, but we believe that the volumes will increase after societies reopen. The lower volumes has also been a result of authorities giving a payment holiday letters. For example, the moratorium situation in Italy has been extended several times.
The latest extension will last until the end of June. From the positive note, AkSachter is building a strong 3PC pipeline across all markets, And we are in advanced stage for several significant PPC deals. We have also signed a couple of new deals where we combine PPC services with NPL acquisitions of the claims at the later stage. And further volume improvements are expected in the second half of twenty twenty one. The last item I will present on the main event is the significant improvement AkSaktor has received on ESG rating.
Please turn to Page 11 for more detail. Ak Saktur has had a strong focus on ESG related topics from the inception of the company. From 2019, we have received external ESG ratings, 1st from GE in 2019 and then later from Susternaalytics in 2020. In order to fully understand these ratings, it is important to know that they are primarily relying on information unknown by the company in annual reports and on company website. In addition to actual improvement, our software has over the last couple of years strengthened the reporting and increased the level of disclosure.
And this has given us a significant improvement in ESG rating. Please note that the 2021 scores does not fully reflect 2020 Annual Report improvement due to announcement date on the rating, which was before we announced the 2020 Annual Report. And we expect further improvements to be visible when the rating agencies update their rating scores. Akzoaktur is determined to continue to drive ESG improvements and contribute to raise the bar for the industry. ESG was the last item we have under main event.
So please move to Slide 13 for our Q1 financial highlights. Those of you that follow the debt collection industry closely have probably noticed that the Q1 of the year normally is the weakest, maybe together with the vacation period in Q3. This year is no exception. If we look closer at the 3 segments, Starting with Ampeel, we did achieve our gross revenue of €53,000,000 up from €54,000,000 same quarter last year, corresponding to 17% growth. We had a slow start in January, but saw strong improvements in February March.
The growth is a result of SAKO being able to invest north of EUR 200,000,000 in new portfolios last year, but we also see positive effects of normalization towards pre pandemic level. For 3rd party collection, the gross revenue came in at €12,000,000 down 14% compared to same quarter last year. As discussed on the remaining events, we are not back at pre pandemic lows yet. We have been experiencing That closing of new 3PC contracts has taken longer time than what we consider normal as some customers are postponing the decision regarding new collection partners. Other customers have been holding back on volumes sent to collection and moratoriums have been extended.
We do expect that volumes will pick up moving further into 2021. For our ramp up segment, Rios, the sales came in at 10,000,000 which we consider an acceptable level and in line with our budget. However, Rios is only counting for a small part of our balance sheet, some 2.3% of total book value exposure on portfolio excluding minority. Please move to next slide where we can see that Axaker continues to focus on cost discipline. As I mentioned in the introduction, To be industry leading on cost to collect is a key element in our strategy.
Our cost position continued to improve and was down 5% in Q1 compared to same quarter last year, adjusted for restructuring costs. Let me underline that these figures are excluding Vios. At the same time, our gross revenue increased 11% year over year. The cost reduction program is expected to drive further improvements throughout 2021. Let's now look a bit more into details on each of the business segments, starting with NPL on the next slide.
In Q1, the NPL collections continued to normalize and we delivered up 17% growth year over year. The contribution margin is still at a satisfying level of 77% and actually 8 percentage points higher than the same quarter last year. No reevaluations has been required and as previously communicated, we expect to have done the necessary changes in active forecast for 2021 and the second half of twenty twenty two, primarily linked to the pandemic. On the next page, we will give more details on which assumptions we are taking regarding the collection curves going forward and also show the performance in Q1 versus our active quarter. Akstagtu delivered 98% collection performance on unsecured NPL collections in Q1.
The reason While we did not hit 1% was primarily due to slow January in Norway. The performance did gradually pick up in February And March came in strong across all Axocto markets. Like we communicated during our Q4 presentation, There are different ways of implementing curve adjustment. As Doctor takes a prudent approach and accounting wise, we assume historical underperformance as loss. This is a more conservative approach than the one assuming that all or parts of the underperformance can be recaptured in the future.
However, it is worth mentioning that this does not necessarily mean that the collections are actually lost as there are not made any adjustments to the claims against Debtors and the debt can be partly or fully repaid. Now please turn to next slide for further comments on the 3PC development. As already mentioned, the 3PC revenue reached €12,000,000 for the quarter. We have already been through PPC market conditions on Page 10, so I will not repeat it. However, please note that the 6 percent contribution margin is burdened with SEK 2,800,000 of restructuring costs in connection with the earlier mentioned cost reduction program.
Adjusted for this, the contribution margin would be 30%, which is down from Q4 last year, mainly due to seasonality, but also some overcapacity in operations as volumes came in lower than expected. Please move to the next slide for more details on our runoff segment, Rios. As you know, we are not doing any new investment in Rios and this is a pure runoff segment. We are satisfied with the revenue level of €10,000,000 in Q1, but the prices was a bit disappointing, taking the contribution margin down to minus 21%. We sold just north of 300 assets in the quarter and the inventory is down 36% since Q1 last year.
The fully consolidated book value at the end of the quarter was €68,000,000 and what sectors exposure is 39% of this amount due to minority interest in the structure. Let's move on to the next slide, where we will present more details of the reported financials. Total income came in at €61,000,000 per quarter, up from EUR56 1,000,000 same quarter last year and also up EUR6 1,000,000 from the previous quarter. The reported EBITDA came in at EUR18 1,000,000 corresponding to a margin of 29%. Please note that the EBITDA was burdened with €3,200,000 restructuring costs.
Cash EBITDA came in at €52,000,000 for the quarter, up from €48,000,000 same quarter last year, but down €8,000,000 from previous quarter, primarily due to gross revenue reduction from Q4 and restructuring costs. More details On items affecting the financials will be given in the next couple of slides. Let me start with net profit after tax on Page 20. As we saw previously, Akzocto reported an EBITDA of EUR 17,700,000. Depreciation and amortization were at an expected level of EUR 2.6 However, the net financial items are extraordinary high with EUR 16,800,000.
The reason is that the net Financial items includes a net unrealized FX loss of €3,200,000 Just for comparison, same quarter last year had an Unrealized FX gain of close to €10,000,000 The tax expense came in at minus €1,700,000 despite negative profit before tax. The main reason for this is that unrealized FX loss is not tax deductible. Hence, the net profit after tax came in at minus €1,400,000 with a corresponding minus 1.6 percent annualized return on equity excluding non controlling interest. On the next slide, we have summarized the 2 most significant items affecting the quarter. Firstly, restructuring cost of SEK 3,200,000 is booked as operating expense, reducing the EBITDA from SEK 20,900,000 down to the reported SEK 17,700,000 Secondly, the net FX impact hitting our net financial items by SEK 3,200,000, bringing the net financial items from $13,600,000 up the reported level of $16,800,000 In total, these items would bring the profit before tax up to €4,700,000 compared to the minus €1,700,000 reported results.
On the next page, Slide 22, we will look closer at the development of internal equity. I will start by repeating what I said during the Q4 presentation in February. 1, there is no big secret that the profitability on wheels has been disappointing since the acquisitions back in 2018. And 2, the return on equity during the pandemic has been weak, both for our sector and the industry assets. But we also show that the difference between reported consolidated rate turn on equity And return on equity excluding reals was 4 percentage points in Q4 2019.
In the following quarters, heavily impacted by the pandemic, The return on equity dropped significantly, both on consolidated levels and excluding reals. Although still impacted by COVID-nineteen, Q1 looks to be The quarter where we again start to see a gap between the two curves, although not huge. We expect this trend to continue over the coming quarters. With that said, let us move on to Slide 24 for an updated outlook. Since we are still in the 3rd COVID-nineteen wave, the outlook Of course, burden with a certain level of uncertainty or maybe I should say an even higher level of uncertainty than what we normally would face.
We believe that the COVID-nineteen impact on business has stabilized and we do not anticipate sudden movement in either direction. PTC volumes are expected to return to pre pandemic levels as societies reopen. Our cost reduction program is targeting A €4,800,000 annualized saving effect by year end and we see an increasing market activity for both PPC and NPL for the coming quarters. We expect an overhang of portfolios released to the market in the second half of twenty twenty. Akzocto will continue to strictly prioritize best NPL deals and we stick to the guiding that NPL investments will exceed EUR 200,000,000 for the year.
This concludes the presentation and we will now open up for questions. Please remember that you can find more information in the supporting information and appendix attached to this presentation.
Thank you. Our first question comes from the line of Ulrik Zorcha from Nordea Markets. Please go ahead.
Hi. Thank you for taking my question. I have a bit of maybe a boring question, but it's regarding the rebound in 3PC volumes. And I was wondering, what are the banks telling you there? And like how Certainly, can we be that it will rebound already maybe in the Q3 given that societies are opening up?
And the reason I'm asking is that Will the banks be willing to maybe stress their clients like 1 quarter after lockdowns? Or like what is the reason they haven't been sending you volumes here. So a bit on the timing and the certainty of the 2PC rebound.
Yes. I could elaborate a bit on that. So thank you for the question. First of all, I think it's several reasons why the banks are not sending all the volumes currently. So for some countries like Spain and Italy, you have this moratorium effect where basically the debtors has been given a holiday on payments.
So we have signed 3PC clients in both of those markets the contract is signed, but they are not in a position to send us the claims. And we have no indications that as soon as the moratorium is Finished that they will not send claims. So we expect claims to be sent to us from Q3. And then you have the situation maybe more characteristic for the Nordics where we, as you know, have a lot of consumer banks on our 3PC Client list, I think that there is just a question of they have less lending volumes and less default rates. So I think there the volume will increase when society reopens and people starts to again use their credit card.
So I think we are pretty confident that in second half, and it's hard to say exactly when, but in second half, the volumes We'll start to increase again on PPC.
Is there a risk that maybe when these non marathons or in Spain and Italy when they Run out that it that the economies or the households are so stressed that it actually will be very difficult To collect on the 3 PC or do you have any comments on that?
Well, It's hard to say exactly how this will play out because it's linked to what kind of supporting packages and so on the government will provide for each every market. I think, again, you have to look at this country by country. Again, the Nordics, we don't expect huge drop In collections, what we have seen is actually quite the opposite, that people are prioritizing to repay their debt. We believe that to continue, but I cannot rule out that certain debtors will have payment issues. But This is I don't have a good estimate for the risk on this, unfortunately.
But if they have payment issue, then maybe it's So reasonable to assume you will get even more volumes or?
Yes, the volumes and this is So it's when there are macroeconomic, call it, challenges, then the default rate usually goes up. And then the volumes usually over time will go down because the credit will be tightened. And then But yes, we believe that what we see here now in the Nordics, the volumes is down mainly because The debtors are the bank's customers are not using the credit cards, and that is the big source of volumes for us, right? When Credit cards and personal loans are going into default. That is when we come into the picture and that volume is down.
Yes, very clear. Thanks a lot.
Thank you.
And the next question comes from the line of Joakim Svingnes From Arctic Securities, please go ahead.
Good morning and thank you for taking my questions. I was just wondering if you could elaborate a bit on the savings program and perhaps indicate how much will be taken under direct Operating expenses and how much will be SG and A.
Could you please repeat the last part of your question?
Yes, because you're stating that some will be Efficiency measures on closing of offices in Spain and some is renegotiating contracts and efficiencies made centrally. So I'm just wondering how much will be taken in Spain and how much will be taken under SG and A and general expenses.
Yeah, thank you so much. I think how you should look upon this is More than 80% will be part of direct OpEx and roughly 20% will be on SG and A.
Okay. Thanks. And then I was just wondering if perhaps there's something I'm missing here, but the costs of the secured assets sold were higher than the income in The quarter, what's the reason for this? And also perhaps you could comment on the low amortization rate in Q1?
Yes, thank you. I can do so. If you look at The reals for the secured assets, we are more or less having the same purchase price as the asset is valued on our balance sheet. And then we get a negative margin for the segment due to operational expenses for selling it.
Okay.
Because I think that's trended around 85% historically, but do you expect that to continue then, that will be At the same level or?
Yes, that's our expectations going forward.
Okay. Thanks. And then I just had one follow-up on 3PCS Karsten as well. The growth you plan within PTC, is that purely organic or are you also considering M and A in certain markets.
I would say that this is mainly organic growth, But we are looking into small M and A transaction in certain markets, but I would say the vast majority would be organic on the CPC and we're also looking at a couple of minor what you call Karma deals. That's basically that You buy volumes, say, for example, a 5 year period with an upfront payment and then you collect with a certain volume guarantee for either 3 year or 5 years, for example. So we are looking into that as well, but mainly organic PTC growth.
Yes, very clear. Just one final thing then. Is there anything if you look at the run rate Collections in Ampells, Rios and 3PC. You said that 3PC you expected will Pickup in the second half, but adjusted for seasonalities, do you expect the same level approximately for the areas in Q2.
Yes, I would say that for Rios, we I'll start with that. That, I think, will be more or less the same level, potentially a bit on maybe, maybe a bit higher, but not so much risk on the downside, I think, based on what we see in the pipeline now. GPC will be adjusted for seasonality and hopefully a Small pickup, but the issue here is that the moratoriums are extended until, for example, like in April, the end of June. So I don't expect a quick pickup in 3PC volumes. And for NPL, I think we have a seasonality effect as well, But also knowing that we have a pretty weak January, I think that it will be maybe a small uptick as well above the adjustment for seasonality.
Okay, that's great. Thank you.
We have another question from the line of Hakan Asplog from DNB Markets. Please go ahead.
Hi, good morning. Thank you for taking the questions. Some questions from me as well. The first one on the costs and the new program. So just to make sure that I understand this correctly.
So in Q1, you already have And annual positive impact from the cost program of SEK 2,300,000. So the net incremental improvement from the Q1 level, That should be then SEK 2,500,000 if that's understandable.
Thank you so much, Hakan. That is correct.
Perfect. Very clear. And then also a follow-up on the 3 PC, so you mentioned that there will be some, say, the start of this year will be a bit Challenging, well, I understand you correctly that we should not expect to see, say, revenues on the 3 PC side at the same level I'll see that lower in 2021 than we saw in 2019.
No, I think I remember that question from the last time, I will stick to what I said the last time. We still have reason to believe that we will reach the 2019 level on GPC for 2021.
Perfect. And then also A question on Q2 and how do you see the investment trajectory into Q2? Should we expect similar as in Q1 and then an uptick in the second part or are you seeing some improvements in terms of Q2 versus Q1.
Yes. We expect the investments to be above Q1 levels for Q2. But then, of course, this is very dependent on if we close one off deals or not because if you look at the pure For the flow commitment, there's just a small uptick. But there are definitely coming opportunities to the market, And we are in a few processes right now. And normally, we would be able to close some of these one of these And hence the Q2 investments would probably be higher.
But again, I would just like to underline, if we don't see the Necessary IRRs, we will not do investments in Q2 on the loan loss. We will then we will continue to work hard on getting the right prices like we do on the forward flow agreements and then wait for the higher volumes to come in, in the second half of the year.
Thank you so much.
And there are no further questions from the phones.
Okay. Then we have a few questions that have come in through the chat function. And the first one being from Jonas Ljem. He asked if Could you give an indication to what the tax rate would have been in the quarter excluding the FX effect? And I'll have our CFO, Kirasva, to answer it.
Thank you so much for the question, Yonath. So to put this very simple, we have reported profit before tax of negative €1,700,000 And then we have unrealized FX losses, which is non tax Deductible of €4,000,000 That would fit us into a profit before tax Adjusted of the €2,300,000 and then the tax would roughly be unchanged of the €1,700,000 giving us some tax rate of 75% roughly. But here, I think it's important to note that when the figures are so close to 0, looking at the tax rate It doesn't make that much sense. Over time, we expect to get to the normalized level of 25% tax rate.
Good. And then we have second question from Johan Strom in Carnegie. The question goes like this. Do you consider a deconsolidation or Spin off of Rios. And to that, we could say, yes, we are considering the consolidation.
It's not decided, but we will look into it. So that is definitely on the table. When it comes to spin off of Rios, this is something that we continuously are looking at. But like I think I comment on this last time or was it the quarter before. The challenge is that we believe that we have the correct asset prices now in our balance sheet.
So for a new player to buy it, they will need to buy it at a discount to get their necessary IRR. So we have the sub costs already taken. So we believe that the most value creating thing that we could do is to actually sell off these assets ourselves. So I think that's the most realistic view on it currently at least. Then let's have the question on the second part and that was what was the underlying CM1 margin in GPC adjusted for restructuring cost?
And that was also commented during on Page 17. It's 30%. Then we have another question here from Ulla Stolberg. I think we have answered At least part of this first part was, can you elaborate on the restructuring cost? And I think we have done it already.
When will PPC volumes improve? I think we have answered that Already, a large competitor reported yesterday, seemed to indicate PPC was improving during the Q1. That might be correct. To be honest, I don't know which competitor and I don't know which market they operate and so on. So it's A bit hard to comment what they are seeing, but so I think we will stick to the comments we have given that is kind of covering the Akaksektur country.
Then we have another question from Magnus Rasmussen in Sberbank, and he's asking, From which rating agencies are you seeking an official credit rating? And that would be Moody's and S and P. Should the euro €5,000,000 or savings all come within 3.50? And that I will not all, but Ekater, you have a better split on it. I don't have the exact split, but I think
I would estimate that we have 70% of the effects within the 3PC segment and the rest split on NPL and SG and A.
Then we have the last question from Jan Christoffersson and he asked, do you have any comments Did the private investors sold off their shares at a price lower than stock market value in the voluntary offer? And the answer to that is no. So we don't have any Other questions on our side, so unless there are more questions on the phone?
There are no further questions on the phone.
Okay. Then I think I would just say again, Thank you to all of you for attending this Q1 presentation, and we wish all of you a very nice day. Bye bye.