Intrum Ab · OMXSTO:INTRUM

Intrum Ab — Intrum Justitia — Q1 2012 Earnings Presentation

26 slides from Intrum Ab's earnings presentation, Apr 25, 2012

  1. Slide 1: Interim Report January-March 2012

    Interim Report January-March 2012 April 25th 2012

  2. Slide 2: Presented by Lars Wollung and Erik Forsberg

    Presented by Lars Wollung CEO and President Erik Forsberg CFO

  3. Slide 3: Quarterly highlights

    Quarterly highlights EBIT margin (adjusted for non-recurring cost in 20% Spain) EBIT growth (adjusted for currency and non- 22% recurring cost in Spain) Return on Purchased Debt (adjusted for non- 18% recurring cost in Spain) 6% Revenue growth in CMS (currency adjusted) © Intrum Justitia AB 2012. Al

  4. Slide 4: Financials

    Financials

  5. Slide 5: Financial summary

    Financial summary Jan–Mar Jan-Mar FY 2012 2011 RTM 2011 Revenues, SEK M: 961 932 3 979 3 950 Revenues, SEK M:* 1 002 932 4 020 3 950 EBIT, SEK M: 160.0 165.7 861.9 867.6 EBIT, SEK M:* 203.9 165.7 905.8 867.6 EBIT margin, %:* 20.3 18.8 22.5 22.0 Organic growth, %: 6 1 - 2 Cash flow from operations, S

  6. Slide 6: Revenues and operating margin, rolling 12 months

    Revenues and operating margin, rolling 12 months Revenues: SEK 4 021 M Operating margin: 22.5% SEK M Revenues 4 000 % EBIT 3 500 EBIT margin 3 000 20 2 500 2 000 1 500 15 1 000 500 0 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 20

  7. Slide 7: Northern Europe

    Regional development Market position Market leader Northern Europe Top 5 45 percent of total revenues Q1 Highlights • Good revenue growth, mainly from Jan-Mar Jan-Mar Change Fx Adj Purchased Debt Excl. PD Revaluations 2012 2011 % % • EBIT improving due to successful Revenues, SEKm 453.5 405.6 11.8%

  8. Slide 8: Central Europe

    Regional development Market position Central Europe Market leader Top 5 24 percent of total revenues Other Jan-Mar Jan-Mar Change Fx Adj Q1 Highlights Excl. PD Revaluations 2012 2011 % % • Good revenue growth, driven by Purchased Debt investments during 2011 Revenues, SEKm 240.0 205.6 16.7% 14.2% •

  9. Slide 9: Western Europe

    Market position Regional development Market leader Western Europe Top 5 31 percent of total revenues Other Q1 Highlights Jan-Mar Jan-Mar Change Fx Adj • Revenues impacted by 42 MSEK and EBIT Excl. PD Revaluations 2012 2011 % % by 44 MSEK due to provision for Spanish court case Revenues, SEKm 308.2 3

  10. Slide 10: Credit Management Services

    Credit Management Services 78 percent of total revenues Q1 Highlights Jan-Mar Jan-Mar Change Fx Adj • Positive trend in organic growth from Q4 Reported numbers 2012 2011 % % continued in Q1 Revenues, SEKm 837.2 786.4 6.5% 6.0% • Service line earnings and margins Service line earnings, SEKm 197.9 192

  11. Slide 11: Financial Services

    Financial Services 22 percent of total revenues Jan-Mar Jan-Mar Change Fx Adj Q1 Highlights Reported numbers 2012 2011 % % Revenues, SEKm 241.3 238.1 1.3% 1.9% • Revenues impacted by 42 MSEK and EBIT Service line earnings, SEKm 105.6 126.3 -16.4% -15.5% by 44 MSEK due to provision for Spanish Servic

  12. Slide 12: Purchased Debt – revaluations

    Purchased Debt – revaluations Q1 Q1 FY PD revaluations, SEK m 2012 2011 2011 Northern Europe 1.9 2.4 18.0 Central Europe -0.4 4.8 7.3 Western Europe -41.9 -1.4 -6.5 Total -40.4 5.8 18.8 Excluding the revaluation of a Spanish portfolio following the ruling of a Spanish court case, revaluations in Q1

  13. Slide 13: PD ROI – rolling 12 months

    PD carrying value: SEK 3 282 M PD ROI – rolling 12 months ROI 12: 17.9% ROI 12: 19.3%* (*Excluding non recurring item in Spain in Q1 2012) SEK M PD carrying value ROI 12 3 200 2 800 20% 2 400 15% 2 000 1 600 10% 1 200 800 5% 400 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010

  14. Slide 14: Purchased Debt, investments 2002–2012

    Purchased Debt, investments 2002–2012 SEK M 1 804 2 000 1 500 498 1 000 660 500 870 996 872 871 1050 276 822 258 201 267 370 295 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 14 © Intrum Justitia AB 2012. All rights reserved.

  15. Slide 15: Balance sheet – Highlights

    Balance sheet – Highlights 31 Mar 31 Mar Dev SEK m 2012 2011 % Total assets 8 262 6 899 19.8 Goodwill 2 412 2 136 12.9 Total financial fixed assets 3 392 2 642 28.4 - whereof Purchased Debt 3 282 2 504 31.1 Shareholders' equity 2 904 2 706 7.3 Net debt/ R12 EBITDA* 1.29 1.30 - Net debt/equity ratio,

  16. Slide 16: Cash flow statement

    Cash flow statement Jan-Mar 2012 Jan-Mar Jan-Mar Dev SEK m 2012 2011 % Operating earnings (EBIT) 160.0 165.7 -3.4 Depreciation 42.5 42.6 0.2 Amortization of purchased debt 293.3 196.3 49.4 Income tax paid -48.9 -63.8 23.4 Changes in working capital 22.1 -9.9 n.a. Financial Net & and other non-cash i

  17. Slide 17: Q&A

    Q&A © Intrum Justitia AB 2012. All rights reserved.

  18. Slide 18: Appendix

    Appendix © Intrum Justitia AB 2012. All rights reserved.

  19. Slide 19: Intrum Justitia in brief

    Intrum Justitia in brief Europe’s leading provider of credit management services, with operations in 20 countries Revenue 2011 FY: SEK 4.0 billion Avrg nr of employees in Q1 2012: 3 373 Listed on NASDAQ OMX, Stockholm, Mid-Cap Market capitalization, March 31, 2012: SEK 8.8 billion Intrum Justitia's

  20. Slide 20: Purchased Debt – an illustrative financial example

    SEK Purchased Debt Gross collection - An illustrative financial example Revenue Amortizations Time Invested amount: 100 SEK M Gross collection 2.25 x invested amount (SEK M) Y1 Y2 Y3 Y4 Y5 Y6-Y10 Y10-Y15 Y1-Y15 Cash-flow distribution 19% 24% 16% 9% 8% 19% 5% 100% Gross collection 43 54 36 20 18 43 1

  21. Slide 21: Purchased Debt, carrying value

    Purchased Debt, carrying value SEK M 3 250 3 000 2 750 2 500 2 250 2 000 1 750 1 500 1 250 1 000 750 500 250 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 21 © Intrum Justitia AB 2012. All rights reserved.

  22. Slide 22: Organic growth revenue 2005-2012

    Organic % growth revenue 2005-2012 Organic growth in Q1(12): 6.1% 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -5 2005 2006 2007 2008 2009 2010 2011 2012 22 © Intrum Justitia AB 2012. All rights reserved.

  23. Slide 23: EBIT Margin Y-o-Y

    EBIT* Margin Y-o-Y Ppt 6 5 4 3 2 1 0 -1 -2 -3 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 2010 2011 2012 Excl. UK downsizing in 2009, goodwill write-down in 2008 and non-recurring 23 item in Spain in Q1 2012 © Intrum Justitia AB

  24. Slide 24: One-offs vs Forward Flow, as a % of PD Investments

    One-offs vs Forward Flow, as a % of PD Investments 100% 8% 90% 28% 31% 31% 26% 33% 80% 44% 46% 42% 38% 40% 48% 50% 48% 51% 52% 49% 70% 61% 59% 56% 60% 75% 50% 92% 40% 72% 69% 69% 74% 67% 30% 56% 58% 62% 60% 52% 54% 50% 52% 49% 48% 51% 20% 39% 41% 44% 10% Forward flows One-offs 25% 0% Q1 Q2 Q3 Q4 Q1

  25. Slide 25: Revaluation pattern (SEK)

    Revaluation pattern (SEK) SEK 19,000 9,000 -1,000 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 -11,000 -21,000 -31,000 -41,000 Q1 2012 include a SEK -41.6 M non-recurring revaluation in Spain. © Intrum Justitia AB 2012. All rights reserved.

  26. Slide 26: A broad indication going forward

    A broad indication going forward Carrying value 31 March 2012: SEK 3,282 M +31% y-o-y (SEK 2,504 M) Gross collection: Carrying value x around 2-2.5 Cash flow distribution 31 Mar of Gross collection 2012 2011 Y1 26% 26% Y2 18% 19% Y3 13% 13% Y4 10% 10% Y5 8% 8% Y6 6% 6% Y7 5% 5% Y8 4% 4% Y9 3% 3% Amo

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