Slide 1: Interim report July - September 2014
Interim report July - September 2014 October 22nd 2014 Lars Wollung, CEO Erik Forsberg, CFO
Slide 2: Quarterly highlights
Quarterly highlights 34% RTM EPS growth EBIT growth (adjusted for currency and debt 16% portfolio revaluations) 22% Growth in operating cash flow 21% Return on purchased debt 271 MSEK investments in purchased debt 2(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 3: Financial summary
Financial summary Jul-Sep Jul-Sep Change Jan-Sep Jan-Sep Change 2014 2013 % 2014 2013 % Revenues, MSEK 1 309 1 135 15 3 814 3 335 14 EBIT, MSEK 415 330 26 1 070 867 23 EBIT margin, % 32 29 n/a 28 26 n/a EPS growth, % 46 26 n/a 32 42 n/a Cash flow from operations, MSEK 788 647 22 1 888 1 641 15 Inves
Slide 4: Revenues and operating margin, rolling 12 months
Revenues and operating margin, rolling 12 months Revenues: SEK 5 045 M Operating margin: 28% SEK M 5 000 Revenues % 4 500 EBIT 4 000 EBIT-margin (RHS) 25 3 500 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 Q2 Q3 Q4
Slide 5: Northern Europe
Regional development Market position Northern Europe Market leader Top 5 49 percent of total revenues Q3 Highlights Jul-Sep Jul-Sep Change Fx Adj • Revenues adjusted for revaluations Excl. PD Revaluations 2014 2013 % % Revenues, SEKm 635 615 3% -1% and currency impact decreasing year- EBIT, SEKm 220
Slide 6: Central Europe
Regional development Market position Central Europe Market leader Top 5 28 percent of total revenues Other Jul-Sep Jul-Sep Change Fx Adj Excl. PD Revaluations 2014 2013 % % Q3 Highlights Revenues, SEKm 362 272 33% 27% • Strong revenue growth and improved EBIT, SEKm 115 69 67% 59% EBIT margin % 32% 2
Slide 7: Western Europe
Regional development Market position Western Europe Market leader Top 5 23 percent of total revenues Other Q3 Highlights Jul-Sep Jul-Sep Change Fx Adj Excl. PD Revaluations 2014 2013 % % • Continued good year-on-year EBIT Revenues, SEKm 297 250 19% 12% and margin development, in line with EBIT, SEKm
Slide 8: Credit Management Services
Credit Management Services 63 percent of total revenues Q3 Highlights Jul-Sep Jul-Sep Change Fx Adj Reported numbers 2014 2013 % % • Revenue growth, adjusted for currency Revenues, SEKm 960 857 12% 7% impact, mainly from increased volumes Service line earnings, SEKm 253 217 17% 12% Service line earn
Slide 9: Financial Services
Financial Services 37 percent of total revenues Jul-Sep Jul-Sep Change Fx Adj Reported numbers 2014 2013 % % Q3 Highlights Revenues, SEKm 564 450 25% 20% • Revenue and earnings growth due to Service line earnings, SEKm 308 235 31% 26% Service line earnings margin % 55% 52% 3 ppt uptake in PD investm
Slide 10: PD ROI – rolling 12 months
PD ROI – rolling 12 months PD carrying value: SEK 5 941 M ROI RTM, excl. reval: 20% SEK M PD carrying value ROI RTM ROI RTM excl. reval 6 000 20% 5 000 4 000 15% 3 000 10% 2 000 5% 1 000 0 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 2008 2009 2010 2011 2012 20
Slide 11: Purchased debt, investments
Purchased debt, investments 2002–2014 SEK M 2 475 2 500 2 014 266 266 2 000 692 FY 753 1 496 1 500 Q1 271 Q2 597 Q3 299 1 000 1804 537 Q4 667 500 822 870 996 872 871 1050 920 688 258 201 267 295 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11(25) © Intrum Justitia AB 2014. All
Slide 12: Purchased debt - revaluations
Purchased debt - revaluations Q3 YTD Q3 YTD PD revaluations, SEK m 2014 2014 2013 2013 Northern Europe 19 19 -3 -9 Central Europe -4 6 -1 4 Western Europe 0 3 2 5 Total 15 28 -2 0 12(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 13: Balance sheet – Highlights
Balance sheet – Highlights 30 Sep 30 Sep Dev SEK m 2014 2013 % Total assets 10 854 9 726 12 Goodwill 2 616 2 400 9 Total financial fixed assets 6 012 5 394 11 - whereof purchased debt 5 941 5 320 12 Shareholders' equity 3 036 2 968 2 Net debt/ R12 EBITDA* 1.77 1.73 * EBITDA = operating result before
Slide 14: Cash flow statement
Cash flow statement Jul-Sep Jul-Sep Dev Jan-Sep Jan-Sep Dev SEK m 2014 2013 % 2014 2013 % Operating earnings (EBIT) 415 330 26 1 070 867 23 Depreciation 40 38 5 118 117 1 Amortization and revaluation of purchased debt 339 340 0 1 036 979 6 Income tax paid -10 -20 -50 -111 -85 31 Changes in factoring
Slide 15: Funding base
Funding base • Syndicated bank loan facility (up to SEK 5bn) Debt Maturity Schedule ‒ About SEK 1,6 bn utilized per Sept 2014 (SEK million) ‒ Loan facility allows a total financing of up to SEK 10 bn 3500 • Corporate bonds (up to SEK 5 bn under MTN program) 3000 ‒ SEK 1 bn, 5Y note, issued in March
Slide 16: Financial targets
Financial targets Financial targets Q3 14 Q3 14 RTM FY 2013 1. EPS growth to exceed 10% per year 46% 34% 41% 2. Return on PD investments to exceed 15% per year 21% 21% 21% 3. Net Debt/EBITDA should be between 2.0 and 3.0 1.77 1.77 1.61 16(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 17: Q&A
Q&A 17(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 18: Appendix
Appendix 18(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 19: Intrum Justitia in brief
Intrum Justitia in brief Europe’s leading provider of credit management services, with operations in 20 countries Revenue 2013: SEK 4.6 billion Avg nr of employees in Q3 2014: 3 855 Listed on NASDAQ OMX, Stockholm, Large-Cap Market capitalization, Sept 30, 2014: SEK 15.3 billion Intrum Justitia's ma
Slide 20: Indicative Financial illustration
Indicative Financial illustration Invested amount: 100 SEK M Gross collection 2.05 x invested amount (SEK M) Y1 Y2 Y3 Y4 Y5 Y6-Y10 Y11-Y15 Y1-Y15 Cash-flow distribution 29% 18% 12% 9% 8% 20% 4% 100% Gross collection 60 38 25 19 15 40 8 205 Amortisation * -31 -17 -11 -9 -7 -20 -5 -100 Amortisation ra
Slide 21: Purchased debt, carrying value
Purchased debt, carrying value SEK M 6 000 5 000 4 000 3 000 2 000 1 000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 21(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 22: Gross Collections vs. Active Forecast - R12
Gross Collections vs. Active Forecast - R12 14% 12% 10% 8% 6% 4% 2% 0% Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 -2% -4% 22(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 23: One-offs vs Forward Flow, as a % of PD Investments
One-offs vs Forward Flow, as a % of PD Investments 100% 90% 31% 26% 28% 30% 29% 30% 31% 34% 80% 40% 38% 50% 48% 51% 52% 49% 51% 52% 50% 70% 61% 59% 56% 60% 75% 79% 50% 40% 69% 74% 72% 70% 71% 70% 69% 66% 30% 60% 62% 50% 52% 49% 48% 51% 49% 48% 50% 20% 39% 41% 44% 10% 25% 21% Forward flows One-offs 0
Slide 24: A broad indication going forward
A broad indication going forward Carrying value 30 Sep 2014: SEK 5,941 M +12% y-o-y (SEK 5,320 M) Gross collection: Carrying value x 2.1 Cash flow distribution 30 Sep of Gross collection 2014 2013 Y1 22% 23% Y2 17% 17% Y3 14% 14% Y4 11% 11% Y5 9% 9% Y6 7% 7% Y7 6% 6% Y8 5% 5% Y9 4% 3% 24(25) © Intru
Slide 25: Intrum Justitia
intrum (~))) justitia Better business for all