Intrum Ab · OMXSTO:INTRUM

Intrum Ab — Intrum Justitia — Q4 2015 Earnings Presentation

26 slides from Intrum Ab's earnings presentation, Jan 28, 2016

  1. Slide 1: Year-end report October - December 2015

    Year-end report October - December 2015 January 28th 2016 Erik Forsberg, CFO and Acting CEO

  2. Slide 2: We are a catalyst for a sound economy

    WE ARE A CATALYST FOR A SOUND ECONOMY 2 © Intrum Justitia AB 2015. All rights reserved.

  3. Slide 3: Q4 2015 Highlights

    Q4 2015 Highlights • Solid financial development ‒ Underlying EBIT growth at +7% (excluding revaluations, fx and items affecting comparability in Q4-14) ‒ EPS growth last 12 months at 18% ‒ Proposed dividend of SEK 8,25/share, for an increase of 18% vs last year • Strong quarter for PD investments ‒

  4. Slide 4: 2015 Full Year Highlights

    2015 Full Year Highlights • Improved market position ‒ Increased PD investments 25% YoY, including two significant portfolios in bank and finance segment ‒ Increased activity for CMS acquisitions • Strengthened client offering ‒ Launch of e-com financing solutions in the Nordics and Switzerland • Co

  5. Slide 5: Financial summary

    Financial summary Q4 Q4 Change FY FY Change 2015 2014 % 2015 2014 % Revenues, MSEK 1 396 1 370 2 5 628 5 184 9 EBIT, MSEK 385 360 7 1 624 1 430 14 EBIT margin, % 28 26 n/a 29 28 n/a EPS growth, % -2 28 n/a 18 31 n/a Cash flow from operations, MSEK 878 784 12 2 905 2 672 9 Investments in purchased de

  6. Slide 6: Northern Europe

    Regional development Market leader Northern Europe Top five 47 percent of total revenues Other Q4 Highlights Q4 Q4 Change Fx Adj Excl. PD Revaluations, Quarter 2015 2014 % % • Significant EBIT improvement Revenues, SEK M 669 678 -1 -1 compared to last year, mainly due to EBIT, SEK M 227 169 34 35 it

  7. Slide 7: Central Europe

    Regional development Market leader Central Europe Top five 29 percent of total revenues Other Q4 Q4 Change Fx Adj Q4 Highlights Excl. PD Revaluations, Quarter 2015 2014 % % • Excluding currency impact, modest Revenues, SEK M 419 382 10 4 EBIT, SEK M 128 119 8 1 year-on-year growth for revenues EBIT

  8. Slide 8: Western Europe

    Regional development Market leader Western Europe Top five 24 percent of total revenues Other Q4 Q4 Change Fx Adj Excl. PD Revaluations, Quarter 2015 2014 % % Q4 Highlights Revenues, SEK M 344 303 14 13 EBIT, SEK M 66 65 2 1 • Good revenue growth, mainly from EBIT margin, % 19 21 -2 ppt positive tre

  9. Slide 9: Credit Management Services

    Market leader Credit Management Services Top five 64 percent of total revenues Other Q4 Highlights Q4 Q4 Change Fx Adj Reported numbers, Quarter 2015 2014 % % • Underlying revenue growth, excluding Revenues, SEK M 1 160 1 019 14 12 currency impact and adjustment of Service line earnings, SEK M 278 2

  10. Slide 10: Financial Services

    Market leader Financial Services Top five 36 percent of total revenues Other Q4 Q4 Change Fx Adj Reported numbers, Quarter 2015 2014 % % Q4 Highlights Revenues, SEK M 581 570 2 0 Service line earnings, SEK M 328 275 19 17 • Strong Q4 PD investments mainly Service line earnings margin, % 56 48 8 ppt

  11. Slide 11: PD Carrying value & growth

    PD Carrying value & growth PD carrying value: SEK 7 027 M Book Value growth: 13% SEK M PD carrying value % Growth YoY 13% 50% 7 000 15% 45% 6 000 40% 33% 35% 5 000 26% 30% 4 000 36% 25% 3 000 20% 24% -1% 3% 15% 2 000 10% 1 000 5% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 Y o Y comparison 12(27) ©

  12. Slide 12: Purchased debt, investments & ROI

    Purchased debt, investments & ROI 2008–2015 PD ROI RTM excl revaluation SEK M 2 428 MSEK 2 500 1 937 25% 266 MSEK 2 000 20% 1130 477 1 500 15% FY 2475 267 Q1 320 1 000 1804 2014 574 10% Q2 509 Q3 500 872 871 1050 5% 619 Q4 469 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 1) 2008 – 2013 paid investme

  13. Slide 13: Purchased debt - revaluations

    Purchased debt - revaluations Q4 FY Q4 FY PD revaluations, SEK M 2015 2015 2014 2014 Northern Europe -52 -79 -2 17 Central Europe 1 69 9 15 Western Europe 15 41 0 3 Total -36 31 7 35 14(27) © Intrum Justitia AB 2015. All rights reserved.

  14. Slide 14: Balance sheet – Highlights

    Balance sheet – Highlights 31 Dec 31 Dec Dev SEK M 2015 2014 % Intangible fixed assets 3 098 2 986 4 - whereof goodwill 2 810 2 719 3 Tangible fixed assets 118 127 -7 Financial fixed assets 7 078 6 249 13 - whereof purchased debt 7 027 6 197 13 Current assets 1 851 1 979 -6 Total assets 12 145 11 34

  15. Slide 15: Cash flow statement

    Cash flow statement Q4 Q4 Dev FY FY Dev SEK M 2015 2014 % 2015 2014 % Operating earnings (EBIT) 385 360 7 1 624 1 430 14 Depreciation 42 52 -19 164 170 -4 Amortization and revaluation of purchased debt 428 359 19 1 495 1 395 7 Income tax paid -36 -27 33 -229 -138 66 Changes in factoring receivables

  16. Slide 16: Funding base

    Funding base • Syndicated bank loan facility (up to SEK 7,5bn) Debt Maturity Schedule ‒ Renegotiated in December 2015 (SEK million) ‒ About SEK 2,3 bn utilized per Dec 2015 4000 3500 • Corporate bonds (up to SEK 5 bn under MTN program) ‒ SEK 1 bn, 5Y note, issued in March 2012 (margin of 3,10%) 3000

  17. Slide 17: Financial targets

    Financial targets Financial targets Q4 15 FY 2015 FY 2014 1. EPS growth to exceed 10% per year -2% 18% 31% 2. Return on PD investments to exceed 15% per year 19% 20% 20% 3. Net Debt/EBITDA should be between 2.0 and 3.0 1.8 1.8 1.9 18(27) © Intrum Justitia AB 2015. All rights reserved.

  18. Slide 18: Q&A

    Q&A 19(27) © Intrum Justitia AB 2015. All rights reserved.

  19. Slide 19: Appendix

    Appendix 20(27) © Intrum Justitia AB 2015. All rights reserved.

  20. Slide 20: This is Intrum Justitia

    Market leader Top five This is Intrum Justitia Other European market leader in an attractive growth market Proven hybrid business model serving the full credit management value chain Delivering consistent, strong financial returns 2015 2014 Revenue 5 628 5 184 Diversification of risk through broad b

  21. Slide 21: Revenues and EBIT margin, rolling 12 months

    Revenues and EBIT margin, rolling 12 months Revenues: SEK 5 628 M EBIT margin: 29% SEK M 6 000 Revenues 30 5 500 EBIT 5 000 EBIT-margin (RHS) 25 4 500 4 000 20 3 500 % 3 000 15 2 500 2 000 10 1 500 1 000 5 500 0 0 2008 2009 2010 2011 2012 2013 2014 2015 22(27) © Intrum Justitia AB 2015. All rights r

  22. 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 Q414 Q115 Q215 Q315 Q415 23(27) © Intrum Justitia AB 2015. All rights reserved.

  23. Slide 23: 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

  24. Slide 24: One-offs vs Forward Flow, as a % of PD Investments

    One-offs vs Forward Flow, as a % of PD Investments 100% 13% 90% 26% 28% 30% 29% 30% 31% 31% 34% 33% 32% 80% 40% 38% 50% 48% 51% 52% 49% 51% 52% 50% 49% 49% 70% 59% 56% 61% 75% 60% 79% 50% 87% 40% 74% 72% 70% 71% 70% 69% 69% 66% 67% 68% 30% 60% 62% 50% 52% 49% 48% 51% 49% 48% 50% 51% 51% 20% 41% 44%

  25. Slide 25: A broad indication going forward

    A broad indication going forward Carrying value 31 Dec 2015: SEK 7,027 M +13% y-o-y (SEK 6,197 M) Gross collection: Carrying value x 2.1 Cash flow distribution 31 Dec of Gross collection 2015 2014 Y1 22% 22% Y2 17% 17% Y3 13% 14% Y4 10% 11% Y5 8% 9% Y6 7% 7% Y7 6% 6% Y8 5% 5% Y9 4% 4% 26(27) © Intru

  26. Slide 26: Intrum Justitia - Better business for all

    intrum (~))) justitia Better business for all

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