Slide 1: Interim Report October — December 2022
Interim Report October — December 2022 26 January 2023 Andrés Rubio, President and CEO Michael Ladurner, CFO intrum
Slide 2: Today's presenters
Today’s presenters Andrés Rubio Michael Ladurner President and Chief Chief Financial Officer Executive Officer intrum
Slide 3: Strong cash generation and finish to 2022
Strong cash generation and finish to 2022 2022 performance shows fundamental strengths 2023 A transition year where we will see * Cash revenues up 11% YoY and 12% QoQ i. Increased flow of financial services claims to our * Strong contribution from PI and SM despite servicing business challenging env
Slide 4: Expected higher servicing volumes and increasing secondary investment volumes
Expected higher servicing volumes and increasing secondary investment volumes Market dynamic Inflation pressure across our markets remained high during Q4, core inflation reached a record high of 5.2% and household cost of borrowing more than doubled during 2022 European economic indicators between
Slide 5: Macro drivers put pressure on consumers and expected NPL increase
Macro drivers put pressure on consumers and expected non- performing loans (NPL) increase creates demand for Intrum’s services Incremental non-performing loans supply expected post pandemic % Stage-2 Loans of Total Loans and Advances at Amortized Cost Stage 2 Loan Stock fees <> £20) 95% 9.5% 91% 9.0
Slide 6: Highly resilient Portfolio Investment performance
Highly resilient Portfolio Investment performance Performance Index, RTM% Gross collections, SEK bn G 20 155 iSong * Since 2004, performance index (vs. original forecast) has not 115 [Original forecast dropped below c. 98% * Quick and sustained recovery from low points with significant 110 outperfor
Slide 7: Diversified and termed out funding profile a competitive advantage
Diversified and termed out funding profile a competitive advantage for Intrum Quarterly IRRs and funding market volatility Back-book IRRs and average cost of funds IRR per quarter Avg. back book IRR .. 9 18% 18% ° Avg. repricing of assets 19% p.a. of EoP book value 16% 16% oo . 2 Assets are self liq
Slide 8: ONE Intrum transformation program: spend and cases migrated
ONE Intrum transformation program: Program spend & cases migrated Transformation program spend, SEK M 2020 2021 2022 2023 150 1500 100 1000 * Our global front offices serve 50 500 18 markets and 19% of all Calls Q420 QI2 =Q221 QA QAM =—«QN22_-—Q222_—QB22_ QA 22 QNZB_-Q22B_-QB2B_—-QA2B . * The global
Slide 9: ONE Intrum transformation program: KPIs
ONE Intrum transformation program: KPIs FTE cost-to-collect RTM, % 7.0% wuarterly actuals 6.5% RTM actuals 6.0% 5.5% 5.0% 45% 4.0% 2021 2022 2023, Planned vs. realised program savings, run-rate SEK M 1,500 2023 P&L savings: 0.7 bn SEK 1,000 Realized 2022 P&L savings: 2024 and beyond P&L 500 >0.2 bn
Slide 10: We play a critical role in the wider financial system
We play a critical role in the wider financial system Progress on sustainability agenda By 2023 Ethical collection by 1. Maintain the high level of value treating customers index above 80/100 fairly Sound economy for 2. Increase the average client our clients satisfaction score across the group abov
Slide 11: Resilient, growing cash generation and strong capital return
Resilient, growing cash generation and strong capital return whilst steadily deleveraging since 2018 Shareholder Remuneration, SEK M Asset Growth and Steady Deleveraging Profitable Growth, SEK bn Efficiency and Operating Leverage Total assets, Delivered 8% avg. growth in cash SEK bn EBITDA and 7% av
Slide 12: Financials
Slide 13: Group key financials
Group key financials: Strong finish to the year with increase in cash revenues ISEK M Q4 2022 Q42021___Change % FY 2022 FY 2021 Cash revenues 6759 6053 12 24 627 22 215 Cash expenses -2973 -2 327 28 -11 389 -9 905 Cash EBITDA 3786 3726 2 13 238 12 310 Replenishment capex 1721 -1474 7 -6 550 -5 654 O
Slide 14: Group cash earnings generation
Group cash earnings generation: Stable recurring cash earnings despite challenging operating i t 40 35 35 34 38 36 32 29 7 30 RTM, SEK bn. 30 ; 246 20 1.0 i \ ai @ os a4 ai @ @ aa | \ 2021 2022 / _— 3200 NS 1.4 \ / \ — 63 6.6 03 Te 3.0 33 0° Cash revenues Cash expenses Cash EBITDA Replenishment Othe
Slide 15: Credit Management Services
Credit Management Services: Higher margin financial services claims continue to lag ISEK M Q4 2022 Q4 2021 Change % FY 2022 FY 2021 Cash revenues 1149 1056 9 4264 4102 Cash EBITDA 332 444 -25 1364 1703 Other capex -17 -7 136 -47 -61 Cash EBIT 315 437 -28 1317 1640 Avg. invested capital 20 892 19 089
Slide 16: Strategic Markets
Strategic Markets: Strong fourth quarter and exceptional full year performance ISEK M Q4 2022 Q4 2021 Change % FY 2022 FY 2021 Cash revenues 1785 1802 -1 6172 5624 . Cash EBITDA 1190 1340 1 3497 3080 pene lly eacce ment Other capex 53 30 5 99 -72 performance, with Italy and Cash EBIT 1137 1310 =13 3
Slide 17: Portfolio Investments
Portfolio Investments: Moderate investment pace at attractive returns SEKM 42022 42021 ge% FY2022 FY 2021 Cash revenues 3.825 3195 20 14191 12.490 ° Siveins [esitiemamaE lin tins Cash EBITDA 2955 2375 24 10790 9215 quarter and for the full year, Replenishment capex 1721 1474 7 -6 550 -5 654 with inc
Slide 18: Portfolio Investments: Negative adjustments in Italian SPV in Q4
Portfolio Investments: Negative adjustments in Italian SPV in Q4 Revaluation impact, SEKbn Q3 ‘22 Adjustments Q4'22 * Adjustment related to a specific transaction between unrelated parties other than ERC 82.8 Book value portfolio JVs Intrum Book value client relationship 11 0.8 * No read-across to o
Slide 19: Funding: Ample liquidity and no significant maturities until '25
Funding: Ample liquidity and no significant maturities until ‘25 Underwriting returns vs. funding cost 16.0% 12.0% ee te " 8.0% 4.0% Q4.18 Q119_ Q219 Q319 Q4 19 QI 20 Q2 20Q3 20Q4 20 QI 21 Q2 21 Q321 Q3 21 Q421 QI 22 Q2 22 Q3 22 Q4 22 Maturity profile — Cost of funds ——RTM avg. net unlevered underwr
Slide 20: Medium-term financial targets
Medium-term financial targets: Progress since CMD in November 2020 SS BT EI%—9U% BEE 9.4% ISS 7A% 77% 82% 84% 8.0% * All target metrics slightly “erm 1 I il il ] 1 | | | | ] _ * Recurring consolidated cash EPS Q120 Q220 Q320 Q420 QI21 Q221 Q321 Q421 QI22 Q222 Q322 Q422 increased from 22.3 to 24.8, +
Slide 21: intrum
intrum
Slide 22: Our priorities going forward
Our priorities going forward wee Ly (EAE Ore Key themes Specific 2023 initiatives priorities a} Organisation and footprint Profitable growth Simplify & Focus b ] Value chain and extension improved effectiveness and efficiency through transformation program Grow & Transform rc} Client and customer ce
Slide 23: Simplify & Focus
@ Simplify & Focus * Focus on two businesses, Servicing and Investing * Coherent and transparent organisation + Franchise markets with deep and long-standing client relationships across both businesses * Tactical markets focus on and are dependent on continuous portfolio investments intrum Streamlin
Slide 24: Grow & Transform
2 Grow & Transform pws 2023 initiatives Value chain extension b Expand product capabilities across Franchise markets, including early stage solutions, secured and real estate Focus on profitable growth & continuous improvement * Rollout our full product offering across franchise Client and customer
Slide 25: Final remarks
Final remarks
Slide 26: Q&A
Q&A intrum
Slide 27: Appendix
intrum x
Slide 28: 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 5. Portfolio joint ventures 6. Unsecured portfolio vintages 7. Upcoming IR act
Slide 29: 1. Outstanding interest rate bearing debt
1. Outstanding interest rate bearing debt Nominal Amount in amount (M) SEKm Bete SEK 2900 -2900--.95% 7/3/2023 Quarterly ~=—=4/3/2028»——-SE0011426295 EUR 469 5216 3.13% 7/5/2024 Biannually —«-7/17/2023-~=—=—«XS1634532748 SEK 1500 1500 5.92% 10/1/2024 Quarterly —=—=«4/3/2023-—-SEOO13102407 ay EUR 850
Slide 30: 2. Pro forma portfolio investments and ROI
17.5% 17.5% 15.7% 14.7% 14.4% 14.4% 14.0% 11.8%
Slide 31: 3. Current MoM for replenishment capex calculation
3. Current MoM for replenishment capex calculation Purchase price of portfolios > 535 1277 1436 831-«3780 1650 1267 837 1256 1443 1680 1445 2133 1675 3120. «13471147 acquired in quarter Lifetime ERC of portfolios 4757 469 2811 1856 7165 3036 2944 1791 2554 3190 3414 2794 4239 3667 5589 30% 2528 acqu
Slide 32: 4. Estimated Remaining Collections (ERC) and collections performance
4. Estimated Remaining Collections (ERC) and collections performance SEK bn ‘I Y2 Y3 Y4 YS Y6 7 8 yo yiO YN YvI2 YI3 YI YIS ERC Portfolio Investment collections vs. active forecast 120% @®> 115% © 110% 105% 100% 95% 90% | 85% 2019 2020 2021 2022 Q119 Q2.19 G3 19. Q4 19 Q1 20Q2 203 2044 20 QI 21 Q2 2
Slide 33: 4. Estimated Remaining Collections (ERC) by market
4. Estimated Remaining Collections (ERC) 60 tay so a a of YI Y2 Y3 Y4 YS Y6 Y7 Y8 mStrategic Markets = Other markets. mNordics ERC distribution (SEKbn) Yi Y2 Y3 Y4 Ys Yo Y7 Y8 Strategic Markets 28 25 2.2 21 23 15 14 WW Other markets 39 3.3 235 19 15 12 1.0 0.9 Nordics 2.8 2.4 2.2 19 17 1.6 14 13 DAC
Slide 34: 4. Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) ERC by Asset Class ERC by Geography Real Estate Other 1% _\ _— Secured markets wa Ke Nordics : -Y DACH & UK Unsecur 22% 1% —— ERC by Investment Type Forward flows 18% Strategic Markets 26% ERC by Industry Other Realestate “5° 2% Telecom 6% Credit cards 8% Fin
Slide 35: 5. Portfolio joint ventures
5. Portfolio joint ventures Cash received to date Current book value Investment share Investment (Intrum), Current ERC (Intrum), Geography Cir) SEKM an, SEKM an, Savoy Italy 59 5 027 758 501 212 Portland Italy 29 234 16 408 229 Cierzo Spain 40 230 37 249 12 Winter Italy 20 200 26 316 216 Sunrise 1 G
Slide 36: 6. Unsecured portfolio vintages
6. Unsecured portfolio vintages Unsecured Purchase Collec’ 5 books, SEKM price men Constant currency vintage evolution for unsecured books Gross money-on-money multiple: Gross money-on-money multiple means the actual gross collections to date, plus ERC as of the same date divided by the total amount
Slide 37: 7. Upcoming IR activities
7. Upcoming IR activities Q4 '22 Physical roadshow * Organised by Citibank and Carnegie -10n1's and group meetings 26 January 2023 in Stockholm (Carnegie) 27 January 2023 in London (Citibank) 30-31 January 2023 in New York (Citibank) Financial calendar 27 April 2023 Interim report for the first quar
Slide 38: 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 39: Leading the way to a sound economy.
Leading the way to a sound economy. intrum