Slide 1: Interim Report October — December 2020
Interim Report October — December 2020 28 January 2021 Anders Engdahl, President and CEO Michael Ladurner, CFO intrum
Slide 2: Today's presenters
Today’s presenters Anders Engdahl President & Chief Executive Michael Ladurner . Chief Financial Officer Officer intrum
Slide 3: Challenging year highlighting resilience of Intrum's performance
Challenging year highlighting resilience of Intrum’s performance Pandemic impact * Two distinct waves of the pandemic during 2020 o Evolution of measures implemented throughout 2020 Blanket approach during 1st wave with a number of economies coming to stand still More calibrated measures during 2" w
Slide 4: Highlights of Q4 2020
Highlights of Q@4 2020 Cash generation growth and reduced leverage Increasing business volumes Cash revenues up SEK > 1bn YoY Continued recovery in Strategic Markets - LTM Cash EBITDA of SEK 11.6 bn and leverage of 4.0x - 24 wave with lesser impact than 1st wave to date - Continued quarter over quar
Slide 5: Servicing
Servicing: Evolving behaviour of both customers and clients across our footprint * Second wave moratoria as well as clients offering customers temporary payment relief, delaying new case volume inflow — Underlying case stock increasing, preparedness, agility and commercial focus key to capture retur
Slide 6: Portfolio Investments
Portfolio Investments: NPL volumes expected to at least double in wake of Covid-19 Fe * Meaningful NPL creation and increased loan loss provisioning during 2020 among European banks — Banks’ loan loss provisioning up 2.5 times H1 2020 compared to H1 2019 - ECB Financial Stability Review, November 20
Slide 7: Change is a constant in our world, but we continue to develop
Change is a constant in our world, but we continue to QB develop, leading the way to a sound economy Intrum ESG targets By 2023 UN SDGs Leubluiwl 8.10 Universal access to Commentary Ethical collection by 1. Maintain the high level of value index above banking, insurance and Rea ueselives 80/100 (80/
Slide 8: ONE Intrum transformation program implementation proceeding according to plan
ONE Intrum transformation program implementation proceeding according to plan 2020 2021 2022 150 100 50 i i to} 2020 Q2 2020Q3_— 20204-20211: 20212-20213 2021Q4_—- 2022 Q1_-—-2022Q2_—-2022Q3_—-2022. G4 mmm Actuals Budget ——Budget Acumulated (RHS) Milestones in multilingual contact centres v Go-Live
Slide 9: ONE Intrum transformation program KPIs
ONE Intrum transformation program KPIs Aggregated cases migrated, 000s 50 000 —Forecast # Cases Migrated —Actual # Cases Migrated 40 000 30 000 20 000 10 000 2020 Q3 2020 Q4 2021Q1 FTE cost-to-collect, % 6.0% 5.9% 2021 Q2 2021Q3 2021Q4 2022 Q1 2022 Q2 2022. Q3 2022 Q4 5.5% 5.0% 45% 4.0% 2020 Q3 2020
Slide 10: Financials
Slide 11: Group key financials: business resilience and growth across all cash metrics
Group key financials: business resilience and growth across all cash metrics YoY despite pandemic SEK M Q4 2020 Q42019 Change% FY 2020 FY 2019 Cash revenues 5601 5751 3 21377 20 160 Expenses -2477 -2 688 -8 -9770 -9 504 Cash EBITDA 3124 3.063 2 11607 10 656 Replenishment capex -1409 -1382 2 -5 355 -
Slide 12: Group cash flow generation: sustained growth in recurring cash earnings
Group cash flow generation: sustained growth in recurring cash earnings with current yield of 15% SEK bn 30 24 20 20 19 18 19 22 . . + 24 ° * Continued growth in recurring 7 10 | I | cash earnings highlights 00 resilience of business model, \ a 2 owe OO | a 2 oe OU particularly in context of Covid-
Slide 13: Credit Management Services: lower inflows throughout 2020
Credit Management Services: lower inflows throughout | 2020 SEK M Q4 2020 FY 2020 FY 2019 Cash revenues 1099 4375 4736 Cash EBITDA 392 1891 2162 Other capex “11 =295 -369 Cash EBIT 281 1596 1793 Invested capital 19 292 19 583 20757 Segment cash RolC % 5.8 8.1 8.6 Revenues adj 1664 6607 7014 External
Slide 14: Strategic Markets: continued improvement albeit at slower pace
Strategic Markets: continued improvement albeit at 6. slower pace SEK M Q4 2020 FY 2020 FY 2019 Cash revenues 1461 5409 4180 Cash EBITDA 914 2722 1745 Other capex 39. -183 -170 Cash EBIT 875 2539 1575 Invested capital 16 297 16 980 17014 Segment cash RoIC % 21.5 15.0 9.3 Revenues adj 1558 5755 4259
Slide 15: Portfolio Investments: outperformance of pre-Covid-19 active forecast
Portfolio Investments: outperformance of pre-Covid-19 = active forecast with index of 102 in 2020 SEK M Q4 Q4 2019 ange % FY 2020 FY 2019 Cash revenues 3041 2955 3 11593 11406 Cash EBITDA 2243 2104 7 8545 8156 Replenishment capex -1409 -1382 2 =5 355 -5 339 Cash EBIT 834 722 16 3190 2817 Invested ca
Slide 16: Items affecting comparability: alignment to accounting practice and revaluations
Items affecting comparability: alignment to accounting practice and revaluations Alignment to Q4 2020 q Portfolio (adjusted) “COUNTING” evaluations O°" Q4 2020 * Alignment to accounting practice jprereittes through adjustment of methods and Revenue 4359 +899 -150 5109 estimates Service line costs -2
Slide 17: ERC and collection performance: reshaped ERC curve
ERC and collection performance: reshaped ERC curve in response to alignment to accounting practice SEK bn 70 60 50 40 30 20 10 Ya YS YO YY? Y8 Y9 YIO YI YI2) YI3 Ya YIS italian porftfolio ERC ERC Portfolio Investment collections vs. active forecast 120% 115% R 2018 2019 2020 intrum cra) 110% ® 105%
Slide 18: Funding: increasing return gap and resilient funding profile
Funding: increasing return gap and resilient funding profile in turbulent markets Increasing return vs. funding cost 18.0% 13.5% - CH ——— 7 * Return gap increasing due to 9.0% <> positive underwriting trends and 45% J stable cost of funds 0.0% an . Q217 Q317 Q417 QI18 Q218 Q318 Q418 QI19 Q219 Q319 Q
Slide 19: Medium term targets: continued progress despite resurgent pandemic
Medium term targets: continued progress despite resurgent pandemic Cash ROIC (LTM) + Progress towards new medium term targets set out during the CMD in November 2020 on track Recurring . consolidated cash EPS . v (LTM) Leverage (LTM) intrum 9
Slide 20: Final remarks
| remarks F
Slide 21: Final remarks
Final remarks Gradual normalisation throughout 2021 * Initially uneven recovery expected to accelerate 2°4 half of 2021 + Intrum set to benefit through presence in 24 countries in Europe and diversified offering * Bucharest contact centre opening and five new markets transferred to global contact ce
Slide 22: Q&A
Q&A intrum
Slide 23: Appendix
intrum x
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 4. Estimated Remaining Collections (ERC) 5. Unsecured Portfolio Vintages 6. Book Value Development during 2020 intrum 24
Slide 25: 1. Outstanding Interest Rate Bearing Debt
1. Outstanding Interest Rate Bearing Debt amount iM) y ae nc ree Haat frequen re SEK 1100 1100 1.72% 11/22/2021 Quarterly 2/22/2021 $£0012193928 EUR 150 1505 2.75% 7/15/2022 Biannually 1/15/2021 XS1634531344 SEK 750 750 239% 9/12/2022 Quarterly 3/12/2021 $£0013104072 wo HK 2900 2900 3.19% 7/3/2023 Q
Slide 26: 2. Pro Forma Portfolio Investments and ROI
18.0% 17.5% 17.5% 15.7% 14.7% 14.4% 11.8%
Slide 27: 3. Current MoM for Replenishment Capex
3. Current MoM for Replenishment Capex EKm Q218 Q318 «418119219, «Q319.-Q419.- 120. 220.320» QH20 Purchase price of portfolios 2385 © 927,«S «2538. «1277=S««*1436~SBSTS«B7BO.—«1650=«1267,=C«837«1:286 acquired in quarter sein the gore 5317 1825 4727 «2669 ~=«2811~=—«1856 7165 3036 =—-2944«1 7912554 Q
Slide 28: 4. Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) ERC* (SEK, billions) 1 655 60 mmm Total ERC —of which Italian portfolio 50 40 30 24.2 50 19.8 159 128 , 10.1 ” ° : 56 38 23 i 1.0 o x os Y6 7 Y8 Y9 yi0 yu yi2 Y13 v4 vis Z a * ii inti um From portfolio investments and cash flows from joint ventures 28
Slide 29: 4. Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) SEKbn 12.0 9.0 : o 20 | | i lJ J a He 00 |_| |_| || = = = — — — = MI y2 YB Ya Ys 6 v7 Y8 Y9 Yio vn yI2 YB v4 YIS mStrategic Markets Other markets mNordics DACH & UK Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Yio _Yit Yi2_—Y13,—Y14_—Y15, Strategic Markets 24 26 3.6 27 15 1.2
Slide 30: 4. Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) ERC by Asset Class ERC by Geography Real Estate 1% Secured Other Nordics | 14% markets 2% ° 27% Unsecured Strategic = DACH & UK 85% —— 22% Markets 28% ERC by Investment Type ERC by Industry Forward Realestate Other flows 2% 15% Telecom 6% Credit cards %% Fina
Slide 31: 5. Unsecured Portfolio Vintages
5. Unsecured Portfolio Vintages Unsecured Purchase Collec’ books, MSEK price to date” Constant Currency Vintage Evolution for Unsecured Books 3,50x A B c B+tc B+C/A <2010 8718 22046 2312 24358 279% 2.80x — — 2010 1940 4620 1285 5904 3.04x 2011 2660 5859 1335 7194 2.70x 240x 2012 3670 7462 1910 9372
Slide 32: 6. Book value development during 2020
6. Book value development during 2020 5059 899 -4.308 35429 - 782 -1028 -33 -32 33305 -1899 BoP Net Amortisation Net Alignment to Italian JV REO. Net other JV FX EoP investments revaluations accounting portfolio impairment adjustments practice intrum 32
Slide 33: 7. Upcoming IR Activities
7. Upcoming IR Activities Q4 Virtual Roadshow Additional events 2021 + Carnegie + NPL Seminar Carnegie, Stockholm — 1-1and group audiocast meetings 28 May 2021 Financial Calendar * Ql report, 29 April 2021 * Q2 report, 22 July 2021 * Q3 report, 21 October 2021 * Q4 report, 27 January 2022 intrum 8
Slide 34: 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 35: Leading the way to a sound economy.
Leading the way to a sound economy. intrum