Mr. Todd Hudson reports

AXIS REPORTS Q2 FISCAL 2023 FINANCIAL RESULTS

Axis Auto Finance Inc. has released financial results for the second quarter of fiscal 2023 ended Dec. 31, 2022.

Q2 2023 FINANCIAL HIGHLIGHTS:

• Auto loan portfolio of $252.2 million, up 28% year-over-year;
• Equipment finance portfolio of $48.0 million, up 612% year-over-year;
• Total owned and managed finance receivables of $300.2 million, up 47% year-over-year;
• Revenues increased 6% to $10.6 million year-over-year; and
• Adjusted earnings of $0.7 million.

For the quarter ending December 31, 2022, auto loan originations were $35.7 million, consisting of $15.1 million owned and on balance sheet, while $20.6 million were volumes managed for Westlake Financial Services ("Westlake"). Axis' total owned and managed auto portfolio reached a record $252.2 million, consisting of $142.5 million of on balance sheet assets and $109.7 million in Westlake managed assets.

Equipment finance origination volumes in the quarter were $27.3 million, representing an 11% year-over-year increase, and consisted of $14.2 million owned and on balance sheet, with $13.1 million being brokered for third parties or originated for syndication partners. In aggregate, the Axis on balance sheet portfolio increased 35% year-over- year, to a record $187.0 million.

Revenues for the quarter were $10.6 million, an increase of 6% year-over-year.

Annualized auto portfolio credit losses for the quarter were 8.03%, up from 7.77% during the same period in prior year, while the Company concluded the quarter with reportable delinquency of 5.58%.

Adjusted earnings for the quarter was $0.7 million, or $0.006 per share, as compared to $1.6 million or $0.013 per share for the comparable quarter of 2022. The Company recorded a net loss for the quarter of $0.5 million or $0.004 per share, as compared to net income of $0.2 million or $0.002 per share in the second quarter of 2022. Adjusted shareholder equity was $58.7 million, or $0.48 per share, at December 31, 2022.

About Axis Auto Finance

Axis is a financial technology company changing the way Canadians buy and finance used vehicles. Through our direct-to-consumer portal, DriveAxis.ca, customers can choose their next used vehicle, arrange financing, and get the car delivered to their home. In addition, the company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its Dealer Partner Network. All Axis auto loans report to Equifax, resulting in over 70% of customers seeing a significant improvement of their credit scores. Further information on the Company can be found at https://www.axisfinancegroup.com/investors-press-releases/.