Slide 1: Interim Report October - December 2018
Interim Report October - December 2018 30* of January 2019 Mikael Ericson, President and CEO Danko Maras, CFO intrum
Slide 2: Market observations
Market observations High levels of market activity continue * High pace of activity in Southern Europe show no sign of slowing * Regulatory pressure on the banking sector continuing to drive the debt sales and restructuring * No sign that regulation will negatively impact non-banking debt collection
Slide 3: Q4 2018 Highlights
Q4 2018 Highlights Strong finish to 2018 Consistent and sustainable model continues deliver with strong end to year inQ4 - Adjusted EBIT* up 23% year on year Good collection performance across the Group support a stable ROI adj of 16%** - Focus on efficiency and effectiveness Record portfolio invest
Slide 4: Reflections on 2018
Reflections on 2018 Year of good progress — established as a true market leader Dividend Steady progress in SEK 9.5 / Share getting CMS back on track and in position to soa for argets Managed the expand margin ‘2g headwinds in Cc leted th Spain @ Strong full year ompete . rowth -Adjusted industry tr
Slide 5: oe
oe
Slide 6: Group financials - summary
Group financials - summary Proforma Q4 2018 Q4 2017 Change % YTD 2018 YTD 2017 Revenues 3517 3101 13 13 442 12219 10 EBIT 1003 807 24 3978 3489 14 Adjustments "235, -201 - -522 436 - EBIT Adjusted 1236 1008 23 4500 3925 15 Net profit for the period 482 443, 9 1943 1318 47 Earnings per share 3,70 3,3
Slide 7: Cash flow statement
Cash flow statement SEKM Q4 201 Q4 2017 Operating earnings (EBIT) 1003 807 3978 Amortization and revaluation of portfolio investments 979 942 3854 Amortization/depreciation and impairment 216 191 900 Cash EBITDA 2198 1941 8732 Net Interest 127 -216 1184. Tax -269 -170 -590 Other 1 214 -804 Cash flow
Slide 8: Leverage and funding position
Leverage and funding position Maturity profile * Leverage (Net Debt/Cash EBITDA*) at 4.3x 28000 * Temporary leverage increase driven by 7000 completion of Intesa and acquisition of Real Estate Assets from lbercaja — financing, to be completed in Q1, will reduce leverage by 15000 mSEK 10 000 0.2x * F
Slide 9: Iberian Peninsula & Latin America
Iberian Peninsula & Latin America FX Adjust % Revenues Adjusted 642 782 18 -23 | 2 826 7 “12 EBIT Adjusted 221 301 -27 -32 | 969 9 “15 EBIT Margin Adjusted % 34 38 -Appt | 34 -1 ppt Portfolio Investments Book Value ex Ibercaja Real Estate 3 863 3390 14 3.863, 3390 14 Q4 Highlights * Headline decline
Slide 10: Western and Southern Europe
Western and Southern Europe Q4 Q4 FX Adjust YTD 2018 2017 fs % 2018 Revenues 729 585 25 20 2622 EBIT Adjusted 244 153 59 55 | 664 EBIT Margin Adjusted, % 33 26 +7 ppt | 25 Portfolio Investments Book Value inc Joint Ventures 10 412 4236 146 10 412 Q4 Highlights * Solid result from the region outside
Slide 11: Northern Europe
Northern Europe Proforma YTD 2017 FX Adjust Revenues 1084 934 16 12 4002 EBIT Adjusted 385 302 27 23 | 1425 EBIT Margin Adjusted, % 36 32 +4 ppt | 36 Portfolio Investments Book Value 7567 6607 15 7 567 Q4 Highlights * Solid end to the year across region in CMS and particularly PI * Increase year on
Slide 12: Central & Eastern Europe
• • • New regional division is applied from Q3 2018. Central & Eastern Europe (CEE): Austria, Czech Republic, Germany, Greece, Hungary, Poland, Romania,Slovakia and Switzerland 12
Slide 13: Credit Management Services
Credit Management Services Q4 Q4 Change FX Adjust Proforma 2018 2017 % % YTD 2017 Revenues Adjusted 2403 2251 7 2 9257 8852 Service Line Earnings Adjusted 657 610 8 3 | 2489 2475 Service Line Earnings Margin Adjusted, % 27 27 +/-O ppt | 27 28 Q4 Highlights * CMS continues to be held back by declines
Slide 14: Portfolio Investments
Portfolio Investments FX Adjust Proforma Change YTD 2017 % Revenues 1665 1450 15 " | 6397 5443 18 Service Line Earnings Adjusted 982 787 25 21 | 3607 2883 25 Service Line Earnings Margin Adjusted, % 59 53. +6 ppt | 56 53 +3 ppt Investments* 2205 2784 -21 | 6952 7857 12 ROI %* 16 15 +1 ppt | 15 16 “1
Slide 15: Common costs
Common costs ange FX Adjust YTD Proforma Change FX Adjust % % 2018 YTD 2017 % % Common Costs Adjusted -404 -391 3 A -1505 1433 5 ie) Q4 Highlights * Seasonally common cost tends to be a little higher in Q4 due 39140 35-404 to higher activity levels -18 4 -369 || * Costs associated with the earn-out
Slide 16: From EBIT to adjusted EBIT
From EBIT to adjusted EBIT EBIT 1003 807 24 3978 3489 14 Non-Recurring items, NRI -223 157 742 -499 Revaluations of Portfolio Investments 76 -44 88 63 Items Affecting Comparability, IAC -86 ie) 132 ie) EBIT adjusted 1236 1008 23 4500 3.925 15 * Total reported NRIs in Q4 of SEK -223m of which SEK -76
Slide 17: 17
17
Slide 18: Synergy
Synergy * SEK 540m in run-rate synergies realized after Q4 2018 * P&L effect of synergies is SEK 160m in Q4 2018 (year on year increase ~SEK 110m) * SEK 380m FY 2018 synergy effect in P&L (year on year increase ~SEK 310m) intrum (MSEK) PF By end of 2018 By end of 2019 Run rate synergies Accumulated
Slide 19: Near term priorities
Slide 20: Looking forward to 2019
Looking forward to 2019 Internal focus on leveraging our scale to transform our production capabilities Normalised investments and extracting value from the high activity levels of 2018 Ensure Intesa partnership delivers in full Reinforce our #1 position in the market, leading the way to a sound eco
Slide 21: Q&A
intrum Q&A
Slide 22: intrum
intrum
Slide 23: Table of content
Table of content 1. NRI, revaluations and IACs by profit and loss segment 2. Funding base 3. Pro forma portfolio investments and ROI 4. Portfolio investments collections vs active forecast {o) Portfoli i i intrum 23
Slide 24: NRI, revaluations and IAC by profit and loss segment
1. NRI, revaluations and IAC by profit and loss segment Regions ‘Service lines [scx NOE CEE _WSE _IPLA__Group| | CMS __FS__ Common Group EBIT Including NRI 320. -469°—~=«108.—=—=«106-—=—«:1005 509 1057-563. —:1005 Lindorff Integration NRI 16-48 9 5 73 18 A 55 13 Other NRI “16 “4 63-68 150 45 0 405-1
Slide 25: Funding base
2. Funding base g credit facility EUR 1.1bn — EUR 646m utilized per 31 Dec 2018 Swedish MTN program — SEK 1bn, 5Y, issued May 2014 (margin of 1.60%) — SEK 1bn, 2Y, issued Jun 2018 (margin of 1.90%) Senior bonds issued June 2017 — SEK 3.0bn, 5Y (3m Stibor(0% floor) + 2.75%) = EUR 300m, 5Y (3m Euribor
Slide 26: Pro forma portfolio investments and ROI
3. Pro forma portfolio investments and ROI SEKM 12000 11 854* 20% 11000 -— 10 000 9.000 15% 8000 er 7.000 e@a 6000 5086 tao 10% @a3 5.000 @ 4.000 @a 3.000 5% 2.000 1000 1373 ° 0% 2013 2014 Portfolio ROI ex NRI and Revaluations RTM 2018 * Ex Joint Venture Intesa and Ibercaja Real Estate intrum 2%
Slide 27: Proforma portfolio investment collections vs. active forecast
4. Proforma portfolio investment collections vs. active forecast 18,0% 16,0% 14,0% 12,0% 10.0% mmm Collections vs Active Forcast per Quarter 8,0% 6,0% — Collections vs Active Forcast R12 4,0% 2,0% 0,0% Qi16 Q216 Q316* Q4 16* Qii7* Q217 Q317 Q417 Qiis Q218 Q318 Q418 *The R12 numbers for these quarter
Slide 28: ERC
5. ERC ERC* (SEK, billions) 60) 574 LA intrum *From Portfolio Investments and Cash flow from Joint Ventures, excluding investment in Ibercaja Real Estate Cash Multiple (ERC/Current BV) as of 31" December 2018 =1,94 28
Slide 29: Pro forma gross cash-on-cash multiple
6. Pro forma gross cash-on-cash multiple Vintage Purchase Price, SEK M 2009 and before 2010 2011 2012 2013 2014 2015 2016 2017 2018 Gross Cash-on-Cash Multiple: 9974 1906 2648 3785 3431 3.867 5 036 4979 7804 11 489* Gross Cash-on-Cash Multiple 2,56 2,64 2,40 2,30 219 2,29 2,00 2,01 1,83 2,01 Gross c
Slide 30: Balance sheet highlights Dec 2018 Dec 2017
7. Balance sheet highlights 31 Dec 2018 31 Dec 2017 Intangible fixed assets 37181 32 690 - whereof goodwill 33.055 29 565 Tangible fixed assets 493 245 Financial fixed assets 30 230 21 880 - whereof portfolio investments. 24 830 21149 - whereof shares in joint ventures 4746 10) Current assets 8129 4
Slide 31: Preliminary and subject to future updates
• • • • • • • • • • • • • • • • • • • • * Preliminary and subject to future updates 31
Slide 32: Disclaimer
Disclaimer The material in this presentation has been prepared by Intrum AB (publ{ (“Intrum’). This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered as advice or a recommenda
Slide 33: Leading the way to a sound economy
Leading the way to a sound economy. intrum