Intrum Ab · OMXSTO:INTRUM
Intrum Ab — Intrum Justitia — Investor Day (May 2007)
20 slides from Intrum Ab's investor day presentation, May 22, 2007
Slide 1: Capital Markets Day 2007
Capital Markets Day 2007 A symphony of Finance, PD and Guidance - with New Financial Targets Presented by Monika Elling, CFO 22 May 2007
Slide 2: Team Finance
Team Finance - Leverage on existing organizational competences Conference 30/5 – 1/6 Finance 2007 Team Business Intelligence Streamlining Treasury – Risk group financial Cash pooling Internal Management systems Control
Slide 3: Annual acquisitions
Annual acquisitions 1. SEK 500 M in annual smaller and medium sized portfolios 2. Larger deals on top of the SEK 500 M is looked for, but visibility is low 3. Larger deals (> EUR 20 M) will normally be shared with our partners The Board has erased the earlier limit of SEK 1.2 bn
Slide 4: A broad indication going forward
A broad indication going forward Book value 31 Dec 2006: SEK 1,318 M => + 41% y-o-y (SEK 933 M) Gross collection: Book value x 2 Cash flow distribution of Gross collection 2006 (31%) 2007 27% (20%) 2008 19% (15%) 2009 14% (12%) 2010 11% (8%) 2011 8% (6%) A slightly higher mix 2012 6% (4%) of bank po
Slide 5: Segmental distribution of portfolios
Segmental distribution of portfolios Other, 11% (14) Mail order, 1% (2) Telecom, 10% (7) Bank loan, 48% (40) Finance, 11% (8) Credit card, 19% (29) Distribution of portfolios by purchase price, end of March 2007 (end of March 2006)
Slide 6: Typical behaviour in a segment portfolio
Typical behaviour in a segment portfolio Bank loan Credit card 0.25% 0.80% 0.70% 0.20% 0.60% 0.15% 0.50% 0.40% 0.10% 0.30% 0.20% 0.05% 0.10% 0% 0% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 4951 53 55 57 59 1 3 5 7 9 11131517192123252729313335373941434547495153555759 Telecom
Slide 7: Accounting for purchased portfolios
Accounting for purchased portfolios SEK M FY 2006 Q1 2007 Gross collection 812.1 240.8 Amortization -409.8 –107.3 Reported revenues 402.3 133.5 Commission + service line costs -240.5 –69.8 Operating earnings (EBIT) 161.8 63.7 EBIT margin 40.2% 47.7% Amortization / Gross collection 50.5% 44.6%
Slide 8: Historical collections and forecasts
Ju n 50,000 -0 0 100,000 150,000 200,000 250,000 300,000 5 Se p- 05 D ec -0 5 M ar -0 6 Ju n- 06 Se p- 06 D 1. ec 2. -0 6 M ar -0 7 Ju n- 07 Se p- 07 D ec -0 7 4. M ar -0 8 Ju n- 08 Se p- 08 D ec -0 8 3. M ar -0 9 Ju n- 09 Se p- 09 D ec -0 9 M ar -1 0 Ju n- 10 Orig_fcast Historical collections and f
Slide 9: IFRS
IFRS Book value SEK M Well above expectations 1,205 portfolios Well below SEK 1,318 M expectations Time 31 Dec 2006 31 Mar 2007 1,320 portfolios SEK 1,365 M
Slide 10: Sweden, Norway & Denmark
22% Regional development, Sweden, Norway & Denmark IFRS impact MSEK 800 700 600 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 Revenues, MSEK EBIT, MSEK * Impact of transition from GAAP to IFRS in 2004 figures: Revenue -107.8 MSEK, EBIT +4.8 MSEK
Slide 11: The Netherlands, Belgium & Germany
Regional development, The Netherlands, Belgium & Germany 20% Acquisition of Start of major bank restructuring portfolio DE MSEK Germany 700 Bailiff D&B Acquisition alliance 600 NL 500 Assu-Re 400 Acquisition BE 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 Revenues, MSEK EBIT, MSEK * Impact
Slide 12: Switzerland, Austria & Italy
Regional development, Switzerland, Austria & Italy 14% Restructuring of non-core D&B Acquisition business in Reorganization MSEK Switzerland Italy 450 400 350 300 250 200 150 100 50 0 1999 2000 2001 2002 2003 2004 2005 2006 Revenues, MSEK EBIT, MSEK * Impact of transition from GAAP to IFRS in 2004 f
Slide 13: France, Spain & Portugal
Regional development, France, Spain & Portugal 16% PD bank portfolio ES MSEK 500 Cofreco acquisition 400 300 D&B Acquisition 200 100 0 -100 1999 2000 2001 2002 2003 2004 2005 2006 Revenues, MSEK EBIT, MSEK * Impact of transition from GAAP to IFRS in 2004 figures was minor
Slide 14: Finland, Estonia, Latvia & Lithuania
Regional development, 13% Finland, Estonia, Latvia & Lithuania MSEK 450 400 350 300 250 200 150 100 50 0 1999 2000 2001 2002 2003 2004 2005 2006 Revenues, MSEK EBIT, MSEK * Impact of transition from GAAP to IFRS in 2004 figures: Revenue -2.5 MSEK, EBIT -2.5 MSEK
Slide 15: United Kingdom & Ireland
9% Regional development, United Kingdom & Ireland Run off of mail order stock Prudent Debt Purchase strategy Stirling Park Loss of commission limits activity in an MSEK acquisition clients to PD sale overheated market 600 D&B Acquisition UK accounting L&T acquisition issues 500 Turnaround Cost 400 R
Slide 16: Poland, Czech Rep., Slovakia & Hungary
6% Regional development, Poland, Czech Rep., Slovakia & Hungary Height of Polish Creditexpress PD-business acquisition MSEK 200 150 100 50 0 -50 1999 2000 2001 2002 2003 2004 2005 2006 Revenues, MSEK EBIT, MSEK * Impact of transition from GAAP to IFRS in 2004 figures: Revenue -9.7 MSEK, EBIT -9.7 MS
Slide 17: Group level Guidance
Group level Guidance Acquisition of minority interest in Intrum Justitia Central Europe BV • Total acquisition price: SEK 100 M SEK 35.6 M - minorities SEK 64.4 M - goodwill • Related negative P&L impact of ca. SEK 4-5 M in Q2 Increase quarterly central expenses • SEK 4 M PD central costs • SEK
Slide 18: Breakdown Revenue growth
Breakdown Revenue growth 2005-2006 and Q106-Q107 Performance Variables 2006 2005 Q1 07 Q1 06 Good No of countries: 11 9 9 11 > 10 % % of total group: 33 23 43 28 Fair No of countries: 6 8 9 6 0 - 10 % % of total group: 41 56 47 43 Unacceptable 1 No of countries: 3 1 4 2 -10 - 0 % % of total group: 1
Slide 19: Breakdown EBITA margin
Breakdown EBITA margin 2005-2006 and Q106-Q107 Performance Variables 2006 2005 Q1 07 Q1 06 Best in class No of countries: 3 3 6 4 > 30 % % of total group: 33 31 49 33 Good No of countries: 8 5 3 5 20 - 30 % % of total group: 37 29 7 24 Yet away to go No of countries: 6 10 7 7 10 - 20 % % of total gr
Slide 20: New financial objectives
New financial objectives • Organic growth of 10% per year • Generate pre-tax earnings at least in line with the annual organic growth • Actively seek out opportunities to grow through selective acquisitions • Achieve an annual return on investments in Purchased Debt of at least 15% • Maintain a net