Intrum Ab · OMXSTO:INTRUM

Intrum Ab — Q4 2021 Earnings Presentation

34 slides from Intrum Ab's earnings presentation, Jan 27, 2022

  1. Slide 1: Interim Report October — December 2021

    Interim Report October — December 2021 27 January 2022 Anders Engdahl, President and CEO Michael Ladurner, CFO intrum

  2. Slide 2: Today's presenters

    Today’s presenters Anders Engdahl President and Chief Executive Officer Michael Ladurner Chief Financial Officer intrum

  3. Slide 3: Delivering on transformation and organic growth

    Delivering on transformation and organic growth Significant progress on our road towards ONE Intrum * Transformation already delivering value and ready to be scaled up for further operating leverage + Improved services and strengthened offering for both clients and customers * 4 global front offices

  4. Slide 4: Highlights of Q4 2021

    Highlights of Q4 2021 Overall: seasonally strong Q4 Servicing: growth and improving margins - Continued positive economic sentiment, despite - Gradual new case inflow normalisation, now also for inflationary pressures and supply chain challenges higher value financial services claims - Business acti

  5. Slide 5: Servicing: Backdrop highly supportive of growth trajectory

    Servicing: i {Jo} Backdrop highly supportive of growth trajectory co Market dynamic + European Economic Sentiment and Employment indicators remain at historically high levels * Continued normalisation of consumer and business behaviour, Omicron variant with limited impact to date * — Inflationary pr

  6. Slide 6: Portfolio Investments: Gradual reversion to more normalised environment

    Portfolio Investments: Fe Gradual reversion to more normalised environment — Investments Market dynamic Impact on Intrum Increasing supply with 2021 level in line with pre- pandemic experience Pandemic portfolios expected to gradually come to market in 2022 and beyond with emphasis on fresher (NPE)

  7. Slide 7: ONE Intrum transformation program

    ONE Intrum transformation program: On track to deliver SEK 1 bn of recurring benefits by YE 2023 SQ 2020 2021 2022 150 1500 100 1000 Q220 Q320 Q420 Qi2i Q221 Q321 Q421 QI 22 Q222 Q3 22 Q422 mmm Actuals Budget ——-Budget accumulated (RHS) © ——=Actuals accumulated (RHS) Milestones in global front offic

  8. Slide 8: ONE Intrum transformation program: KPIs

    ONE Intrum transformation program: KPIs Aggregated cases migrated, 000s 50.000 40 000 30.000 20000 76M 10.000 QQ BB B 6A Qk BS UM COO 2021 | 2022 2023 ——Actual # Cases Migrated —-—Current Forecast # Cases Migrated For reference: Old forecast # Cases Migrated FTE cost-to-collect RTM, % 7,0% ouarter »

  9. Slide 9: Cost control & transformation benefits clearly visible

    Cost control & transformation benefits clearly visible SEK bn 2019 2020 2021 agro Cash revenues 20.2 21.4 22.2 can oo oe Cash expenses +4% 95 98 99 -55% Other capex 07 o7 o Cash EBITRC” 10.0 10.9 12.0 Cash EBITRC” margin 49% 51% 54% +5ppt Cash EBITRC” margin excl. 49% 52% 56% +éppt transformation ca

  10. Slide 10: Progress on sustainability agenda during 2021

    Progress on sustainability agenda during 2021 Environmental In 2021 Intrum has: ¢ Supported the TCFD, Task Force on Climate Related Financial Disclosures * Started CDP reporting, Carbon Disclosure Project * Revised the Global instructions on travel and company cars * Financed certified projects, cre

  11. Slide 11: Slide 11

  12. Slide 12: Group key financials: Seasonally strong Q4

    Group key financials: Seasonally strong Q4 SEK M Q4 2021 @Q42020 Change% FY2021 FY 2020 Change % Cash revenues 6053 5601 8 22 215 21377 4 Cash EBITDA 3726 3124 19 12310 11 607 6 Replenishment capex -1474 -1409 5 -5 654 -5 355 6 Other capex -81 -191 -57 “314 -672 -53 Cash EBIT 2171 1523 43 6343 5580

  13. Slide 13: Group cash earnings generation

    Group cash earnings generation: Substantial growth & SEK 3.5 bn of recurring cash earnings generated 40 35 32 35 RTM, SEK bn 50 2 i 29 : 21 22 22 20 * Cost control and substantial 10 operating leverage, positive jaws from cash revenues to cash EBIT ai Q2 Qs a4 ai Q2 Qs Q4 | 2020 2021 } P p * Recurri

  14. Slide 14: Credit Management Services

    Credit Management Services: | oOo Cash EBIT growth & improvement in cash RolC and margin co Credit Management Services SEK M hange % FY 2021 FY 2020 Change % Cash revenues 1056 1099 4 4102 4375 6 . . : Cash EBITDA 444 392 13 1701 1891 10 * New case inflows with continued Other capex 7 <1 -94 -61 -29

  15. Slide 15: Strategic Markets

    Strategic Markets: 6. Very strong finish across all markets Strategic Markets SEK M ange % FY 2021 FY2020 Change % o Seasenalhiywary sien Oe Cash revenues 1802 1461 23 5624 5409 4 Cash EBITDA 1340 14 47 3080 2722 13 . Other capex 30 39 23 2 183 61 * Timing of cash expenses vs. Cash EBIT 1310-875 50

  16. Slide 16: Portfolio Investments: Continued broad-based outperformance

    Portfolio Investments: Continued broad-based outperformance SEK M Q4 2021 @42020 Change% FY2021 FY 2020 Change % Cash revenues 3195 3041 5 12 490 11593 8 Cash EBITDA 2375 2243 6 9215 8545 8 Replenishment capex -1474 -1409 5 -5 654 -5 355 6 Cash EBIT 901 834 8 3561 3190 12 Avg. invested capital 37798

  17. Slide 17: Portfolio Investments: Refinancing of Italian SPV completed

    Portfolio Investments: Refinancing of Italian SPV successfully completed Refinancing impact Before After owners Intrum MN% 59% * Overall investment structure unchanged * Relevant refinancing proceeds Senior debt SEK 7.3 bn SEK 10.1 bn recycled to increase Intrum stake Coupon 3.25% + EURIBOR?) 2.00%

  18. Slide 18: Funding: Ample liquidity and no significant maturities until 2024

    Funding: Ample liquidity and no significant maturities until 2024 Underwriting returns vs. funding cost 16,0% 20% eS * Return gap of 3.9x, stabilising at 8,0% © pre-pandemic levels 4,0% PT aye . + No significant maturities until - 2024 Q3 17 Q4.17 Q118 Q2 18 Q3 18 Q4 18 Q119 Q2 19 Q3 19 Q4 19 QI 20Q

  19. Slide 19: Medium-term financial targets

    Medium-term financial targets: Clear progress towards medium-term financial targets >10% 74% 77% 82% 8.4% 3% 5 Cash RolC 65% 67% 6,8% . 8.0% (RTM) i | | | [] l] Q419 Q120. 220 -Q320 Q420 BIA = 221. QSAI_— QAI CAGR B= Recurring . 253 28,5 262 29,0 . 23 : my (240 >10% Continued progress towards consol

  20. Slide 20: Final remarks

    | remarks F

  21. Slide 21: Final remarks

    Final remarks [See | Portfolio Investments. - CMS Normalising case inflows, including financial claims and demonstrable progress on big client signings + Proven ability to grow and expand margins in competitive environment as demonstrated in Q4 '21 further enhanced by increasing operating leverage d

  22. Slide 22: Q&A

    Q&A intrum

  23. Slide 23: Appendix

    intrum x

  24. Slide 24: Table of Contents

    Table of Contents 1. Outstanding interest rate bearing debt 2. Pro forma portfolio investments and ROI 3. Current MoM for replenishment capex calculation 4. Estimated Remaining Collections (ERC) and collection performance nsecured portfolio vintages 6. Upcoming IR activities | intrum 24

  25. Slide 25: Outstanding interest rate bearing debt

    1. Outstanding interest rate bearing debt amount (M) aren c rate Maturity SEK 750 2.40% 9/12/2022 Quarterly 3/14/2022 SEO013104072 SEK 2900 2900 3.19% 7/3/2023 Quarterly 1/3/2022 $£0011426295 EUR 900 9225 3.18% 7/15/2024 Biannually 1/17/2022 XS1634532748 SEK 1500 1500 3.19% 10/1/2024 Quarterly 4/1/2

  26. Slide 26: 17,5% 17,5% 15,7% 14,7% 14,4% 14,4% 11,8%

    17,5% 17,5% 15,7% 14,7% 14,4% 14,4% 11,8%

  27. Slide 27: Current MoM for replenishment capex calculation

    3. Current MoM for replenishment capex calculation EK M Purchase price of portfolios acquired in quarter Lifetime ERC of portfolios acquired in the quarter Q121 Q221 Q321 Q421 1443 1680 1445 2133 3190 3414 2794 4239 Quarterly MoM RTM MoM (avg. of quarterly MoM) In quarter collections RTM MoM (avg. o

  28. Slide 28: Estimated Remaining Collections (ERC) and collections performance

    4. Estimated Remaining Collections (ERC) and collections performance SEK bn 80 70 ‘I Y2. Y3 Y4 YS Y6 7 8 yo yiO YN YvI2 YI3 Ya YIS italian porftfolio ERC ERC Portfolio Investment collections vs. active forecast 120% 115% 10% 105% 2018 2019 2020 2021 intrum Q218 Q3 18 Q4 18 Q119 Q219 Q319 Q419 QI 20

  29. Slide 29: Estimated Remaining Collections (ERC)

    4. Estimated Remaining Collections (ERC) SEK bn 12,0 9,0 7 U | 30 = |_| if L a I YI Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 YIO. Yu mStrategic Markets Other markets mNordics DACH & UK ERC ion (SEK bn) Y1 Y2 Y3 Y4 Y5 Y6é Y7 Y8 Y9 Y10 Strategic Markets 22 24 1.8 21 27 23 19 1.6 14 12 Other markets 37 29 22 1.8 14 1.2

  30. Slide 30: Estimated Remaining Collections (ERC)

    4. Estimated Remaining Collections (ERC) ERC by Asset Class ERC by Geography Real Estate Other 1% \ __ Secured markets Nordics 9% 25% 25% DACH & UK Unsecurer 20% 90% —— ERC by Investment Type Forward flows 14% Strategic Markets 30% ERC by Industry Realestate Other Credit cards 8% Finance 1% One-off

  31. Slide 31: Unsecured portfolio vintages

    5. Unsecured portfolio vintages Unsecured Purchase Collec’ books, SEKM price to date Constant currency vintage evoluti 3,50x <2010 879 22597 2098 24 696 2.83x 2,80x 2010 1940 4.843 1163 6006 3.10x 2011 2.660 6179 1324 7503 2.82x 210x — 2012 3.670 7893 1834 9726 2.65x 2013 3532 7038 2121 9159 2.59% 2

  32. Slide 32: Upcoming IR activities

    6. Upcoming IR activities Q4 Virtual Roadshow Additional investor events * Organised by JP Morgan and SEB * SEB Financial Summit 2022 -10n1's and group audiocast meetings 22 February 2022 Financial calendar * 29 April 2022 Interim report for the first quarter * 29 April 2022 Annual General Meeting *

  33. Slide 33: 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

  34. Slide 34: Leading the way to a sound economy

    Leading the way to a sound economy. intrum

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