Hoist Finance Year-end Report 2014

The information above has been published pursuant to the Swedish Securities
Markets Act (Sw. lag om värdepappersmarknaden) and Swedish Financial Instruments
Trading Act (Sw. lagen om handel med finansiella instrument). This information
was released for publication at 8.00 CET on 3 February 2015.

  · Gross cash collections increased by SEK 231 M to SEK 750 M (SEK 519 M).
  · Total revenue increased by 16% to SEK 480 M (SEK 413 M).
  · EBIT totalled SEK 150 M, an increase from SEK 126 M. The corresponding EBIT
margin was 31% (31%).
  · Profit before tax decreased to SEK 48 M (SEK 70 M).
  · Portfolio acquisitions totalled SEK 1,544 M (SEK 1,339 M).
  · Earnings per share before dilution totalled SEK 2.37 (SEK 3.85). Earnings
per share after dilution totalled SEK 2.02 (SEK 2.85).
  · Carrying value of acquired loans totalled SEK 8,921 M (SEK 6,400 M).
  · Gross 120m ERC (Estimated Remaining Collections) increased to SEK 15,576 M
(SEK 10,673 M).
  · During the period, a preferential rights issue of approximately SEK 100 M
was completed. The issue was fully-subscribed by existing shareholders. Hoist
Finance also completed a new share issue against payment in kind by perpetual
convertible debentures with subsequent conversion into shares in Hoist Kredit AB
(publ), thereby converting SEK 100 M from Tier I capital into CET 1 capital.
  · Total capital ratio increased to 12.17% (11.62%).

  · CET 1 ratio (Common Equity Tier I Capital) totalled 9.35% (5.69%).
  · The Board does not propose any dividend for 2014.
Continued strong portfolio acquisitions with increased profitability

2014 was another successful year for Hoist Finance. We have continued to
reinforce our position as a leading debt restructuring partner to international
banks and financial institutions across Europe. Through consolidated efforts we
managed to achieve important strategic milestones. We launched a new internal
strategic platform, formalising and executing on a number of key strategic
initiatives, both operational and financial. This, together with a continued
high rate in portfolio acquisitions, enabled us to deliver significant financial
improvements with increased net income and an improved EBIT margin for 2014.

Market development

We operate in a market that offers significant growth opportunities, which
ultimately stem from a number of strong underlying factors including;

  · The implementation of Basel III, which will over time result in an increase
in capital requirements of credit and banking institutions;
  · The substantial backlog of non-performing loans still present on the balance
sheets of the international banks – a legacy of the financial crisis in 2008;
  · The growing trend of institutional outsourcing of non-core business to
specialised market participants.

With our wide geographical presence, our focused sales strategy and our proven
model for amicable settlements, we acquired a total portfolio transacted value
of SEK 3.2 billion during 2014. As a result we positioned us once again, as the
largest pan-European buyer of
non-performing consumer loans originated by financial institutions, a position
we have held for three consecutive years.

Improving our geographical footprint

During the course of 2014 our strategy for growth and geographical
diversification has been successful. We had the opportunity to acquire TRC SpA,
which was our master servicer in Italy. TRC has
a countrywide presence in Italy, and this was clearly of strategic interest.
During the fourth quarter we also acquired Navi Lex – a leading Polish debt
collection agency with a solid background in collection process. This resulted
in that we now have local and more scalable collection platforms in all of our
jurisdictions except for Austria.

Change in the Board of Directors

Our Board of Directors has been strengthened during 2014. A new Chair of Board,
Ingrid Bonde has been appointed, as well as new board members Gunilla Wikman,
Annika Poutiainen and Liselotte Hjorth.

Strengthening of internal processes
and new financial targets

We have also continued to strengthen our headquarters in Stockholm, adding new
functions and roles in order to build an organisation prepared to take on larger
volumes in front of the market trajectory.

As of 2015 we introduce three financial targets:

Profitability:

  · By utilising our operating leverage we aim to expand our EBIT margin and
achieve an EBIT margin of above 40% in the medium term.

Capitalisation:

  · Core primary capital ratio to exceed 12% with potential to temporarily go
below as a result of large portfolio or goodwill acquisitions.

Dividend policy:

  · As we continue to foresee substantial acquisition opportunities in our
markets we will initially aim to distribute around 25-30% of our net profit as
dividend over the medium term. Given the historically strong cash flow
generation of our business, our long term aim is to distribute around 50% of the
annual net profit as dividend.

Significant growth opportunities ahead

Our financial targets and strategic priorities are ambitious. However, our
ambition is only tempered by what is realistic according to projected market
conditions, and we see significant growth opportunities in the markets where we
currently operate.

Going forward Hoist Finance is expecting the portfolio purchase volume to be in
line with or higher than the previous years.

In addition, we are continuously reviewing new market entry potential according
to their underlying characteristics and strategic fit with Hoist Finance ́s
growth plans. And as always, we will continuously work to deepen our
relationships with our partners in existing markets and will follow them into
new jurisdictions when opportunities arise.

Jörgen Olsson

CEO
Hoist Finance AB (publ)

For further information, please contact:

Jörgen Olsson, CEO Hoist Finance

Anne Rhenman Eklund, Group Head of Communications and IR Hoist Finance

Contact details:

Phone +46 (0)8 55 51 77 90

Email: anne.rhenman-eklund@hoistfinance.com

About Hoist Finance

Hoist Finance is a trusted debt restructuring partner to global banks and
financial institutions, offering a broad spectrum of advanced solutions for
acquisition and management of non-performing unsecured consumer loans. The total
carrying value of Hoist Finance’s acquired loans is approximately EUR 940
million at 31 December 2014.

Hoist Finance is a Pan-European debt purchase company with presence in eight
European markets. Hoist Kredit AB (publ) is licensed and regulated by the
Swedish Financial Supervisory Authority, and is funded by the internet-based
savings deposit service HoistSpar in Sweden, with more than 60,000 accounts, and
by senior and subordinated unsecured bonds of in total SEK 1.1 billion as well
as EUR 100 million in senior unsecured bonds listed on Nasdaq.

www.hoistfinance.com