Slide 1: Interim Report January — March 2023
Interim Report January — March 2023 27 April 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 Financial Officer Chief Executive Officer intrum
Slide 3: First quarter 2023 highlights
First quarter 2023 highlights Progress on strategic initiatives Slow but accelerating start to a transitory 2023 * Rebalancing global vs. local * Unsatisfactory first quarter bottom line result + New organisational structure * Increased interest rates and muted consumer confidence create demand for
Slide 4: Peak inflation seems to have passed, but consumer confidence remains muted
Peak inflation seems to have passed, but consumer confidence remains muted with a recession considered likely Key Euro area macroeconomic indicators in Q1 2023 44% decrease in consumer confidence vs Q1'22 107% increase in mortgage cost vs Q1'22 32% increase in cost of consumer loans vs Q1 ‘22 13% in
Slide 5: Favorable market opportunity with Stage 2 loans materially increasing
Favorable market opportunity with Stage 2 loans materially increasing and banks’ propensity to minimise on-balance sheet NPLs Historical NPL formation and NPL transactions in EU EUR bn mStage 2 mNPL 2,500 Sb 2,009 cri , 2,000 ch 1,800 1,549 1,500 1,262 1,220 1,000 500 468 2018 2019 2020 2021 2022 GB
Slide 6: Distribution of European NPLs and Stage 2 loans
Distribution of European NPLs and Stage 2 loans highlights significant opportunity for Intrum in Middle and Southern Europe EU/EEA (as of Q4 '22) EUR 357 bn 1.8% - NPL volume & ratio on banks’ balance sheet EUR eyes on - Stage 2 loans & ratio on banks’ balance sheet ws ° F net stse2, (of total volum
Slide 7: Servicing: increasing case values; bank & finance claims gradually return
Servicing: increasing case values; bank & finance claims gradually return Average value per case and business mix (for key servicing geographies*) SEK k Business mix 10 @ 28% 9 (25%) 26% 8 23% * Increasing number of claims from 7 2% banks & finance positively impact average case value 6 18% Bh & a o
Slide 8: Investing: collections in line with active forecast
Investing: despite operational and macro challenges, collections in line with active forecast, benefiting from a highly diversified portfolio Investing performance vs. active forecast (%) 110% | | | | | | | | | | Qi Q2. QB 4 QI 2 QB 4 AI 2 QB 4 2020 2021 2022 2023 mPI Index vs. Active forecast intru
Slide 9: Update on transformation and focus going forward
Update on transformation and focus going forward ONE Intrum has gone too far in concentrating both the management and operations of our business -a more balanced global vs. local business model empowers our local teams Progress on Transformation Focus going forward 364 MSEK run-rate savings achieved
Slide 10: Intrum has significant social impact and creates substantial benefit
Intrum has significant social impact and creates substantial benefit for the financial ecosystem Helped 4.4 M individuals to Individuals resolve tn, prom ambanies can become debt free with Intrum feel better. _ ; — and flourish... last 12 months ’ me hea *, Achieved 4.2 / 5.0 customer : bescing he °
Slide 11: In summary, Intrum has steadily increased commercial activity
In summary, Intrum has steadily increased commercial activity and produced a highly resilient cash flow supported by its investments Positive trend in Servicing Annual Contract Value sales EURM Sainsbury's EUR bn 2s transformational deal 20 182 15 10 172 5 0 162 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi 2021 2022
Slide 12: Financials
Slide 13: Group key financials: slow first quarter with stable revenues
Group key financials: Slow first quarter with stable revenues SEKM Q1 2023 Q12022 _ Change % RTM FY 2022 Cash revenues 5,901 5,792 2 24,736 24,627 Cash EBITDA 2,728 3,035 -10 12,931 13,238 Cash EBITDA margin, % 46 52 -6 ppt $2 54 Cash EBIT 1,180 1,409 16 6115 6,344 Cash net financials and tax 1,166
Slide 14: Costs have increased beyond what is supported by top line growth
Costs have increased beyond what is supported by top line growth — immediate cost program of SEK 0.6 bn Cash cost have grown faster than cash revenues... ... With root causes clearly identified... .. to be addressed with a SEK 0.6 bn cost program 247 | Addressable cost base 118 SEK 6.3bn + Growth of
Slide 15: Recurring cash flow generation: SEK 8.9 bn
Recurring cash flow generation: SEK 8.9 bn generated despite cost challenges and inflationary operating environment Significant cash available after ..for discretionary finance cost and tax... .. With positive multi-year trajectory... deployment RTM, SEK bn Deleveraging 12.9 | 89 Replenishment capex
Slide 16: Net debt has increased due to FX and other items
Net debt has increased due to FX and other items while cash EBITDA has also grown substantially Net Debt development Q1 ‘20 to Q1 ‘23 Cash EBITDA Q1'20 to Q1‘23 RTM, SEK bn 6.2% RTM, SEK bn -0.4% | 15% | 2.5 54.5 13.2 51.3 4.4 511 22 . mm 116 46 Cash flow Adj. Extraordinary @1'20 Q1'23 Q1'23 items @
Slide 17: Credit Management Services
Credit Management Services: Organically increasing revenues and more favourable claim mix Cash EBITDA Cash revenues 1,181 1,054 re at 4,264 —r™ (Margin) Cash EBITDA 268 324 ” 1,307 1,364 Cash EBITDA margin, % 23 31 -8 ppt 30 32 Revenues adj. 1,697 1,574 8 6,550 6,428 External revenue adj. 1,181 1,05
Slide 18: Strategic Markets
Strategic Markets: Important client wins in a seasonally slower first quarter SEKM Q12023 @12022 Change% RTM GZ =Cash EBITDA Cash revenues 1,329 1,418 ~6 6,084 6,172 RTM (Margin) Cash EBITDA 599 739 19 3,358 3,497 Cash EBITDA margin, % 45 52 -7 ppt 55 57 5.558 Revenues adj. 1,447 1,517 5 6,590 6,660
Slide 19: Portfolio Investments
Portfolio Investments: Stable growth and new investments at attractive returns Cash EBITDA Cash revenues 3,392 3,320 14,262 14,191 Cash EBITDA 2,576 2,486 4 10,879 10,790 mim Cash) EBITDA a 10879 Cash EBITDA margin, % 76 75 +7 ppt 76 76 Replenishment capex 1,488 1,545 -4 -6,494 -6,550 Cash EBIT 1,08
Slide 20: New segment reporting to be introduced later in '23
New segment reporting to be introduced later in ‘23 Business lines Geographies Servicing: collecting late payments on Franchise markets behalf of clients Investing: acquiring late payment claims © [tesdiesneugzs as a principal @ Middle Europe @ Southern Europe @ Tactical Markets SEK M, RTM Q1'23 Gro
Slide 21: 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% ——_Unlevered underwriting IRRs 4 8.0% 40% _ Costef funds Ql Q2 3 Q4/ Qi Q2 @ a4 {ar Qz Qs a Qi Q2 @3 a4 a 2019 2020 2021 2022 Leverage ratio Maturity profile 51,270 SEKM @1'20 Q2'20 Q3'20 Q4'
Slide 22: Medium-term financial targets
Medium-term financial targets: Progress since CMD in November 2020 82% 84% poy 89% 89% 90% 88% g4% g.2% 7.8% i 7% 6.8% Cash RolC 620% 210% (RTM) | | Q120 Q220 Q320 Q420 Q121 on en Q421 Q122 Q222 Q322 Q422 Q1I23 : ¢ All target metrics somewhat ge subdued 33 30.2 : * Recurring consolidated cash lidate
Slide 23: Final remarks
Slide 24: Final remarks
Final remarks Servicing Investing + High ACV signings and AuM growth demonstrating clients’ * Resilient collections in line with active forecast, supported by high increasing demand for our services employment and a granular diverse back-book * Positive trends in business mix to support margin devel
Slide 25: Q&A
Q&A intrum
Slide 26: Appendix
intrum x
Slide 27: 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 uropean market of
Slide 28: 1. Outstanding interest rate bearing debt
1. Outstanding interest rate bearing debt urrency pmount(e) pon rate Maturity SEK 2,900 6.60% 7/3/2028 Quarterly 7/3/2028 $£0011426295 EUR 469 3.13% 7/15/2024 Biannually 7/7/2023 X$1634532748 SEK 1,500 6.60% 10/1/2024 Quarterly 7/3/2023 SE0013102407 wy FUR 850 4.88% 8/15/2025 _Biannually 5/15/2028 X
Slide 29: 2. Pro forma portfolio investments and ROI
2. Pro forma portfolio investments and ROI SEK m 12000 11854 175% 175% 18.7% am% 8,106 9.000 14.4% 7,324 11.8% 2,683 6000 3,780 5,012 4,258 1633 7,857 4q10 837 831 3000 8 are 1,436 ey i 2018 2016 2017 2018 2019 2020 Portfolio ROI ex IAC and revaluations RTM Portfolio ROI ex JV, IAC and revaluations
Slide 30: 3. Current MoM for replenishment capex calculation
3. Current MoM for replenishment capex calculation seKm ata | atts Q219 Q319 Q419 Q120 Q220 Q320 Q420 Qi21 Q221 Q321 Q421 Qi22 Q222 Q322 Q422 Qi23 Purchase price of portfolios acquired in 2538 1,277 1,436 «831 3,780 1,650 1,267 837 1,256 1,443 1680 1,445 21331675 3,120 13471147 1,675 quarter Lifetim
Slide 31: 4. Estimated Remaining Collections (ERC) and collections performance
4. Estimated Remaining Collections (ERC) and collections performance SEK bn 80 70 60 * 180m ERC at SEK 78.5 bn 50 40 30 * Collections during the first 20 quarter in line with active forecast 10 : YI Y2 Y3 Y4 YS Y6 Y7 Y8 Yo Y10 Yu YI2 YI3 YI4 YIS . RTM collections at 10% of active forecast Portfolio
Slide 32: 4. Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) 15-year ERC of SEK 78.5 bn SEK bn 12.0 30% of ERC due next 24 months 60 Pay 3.0 YI Y2 Y3 Y4 YS Y6 Y7 Y8 Y10 Yu mStrategic Markets Other markets = Nordics DACH & UK ERC distribution (SEKbn) v1 Y2 Y3 ZI Y5 Y6 Y7 Y8 Yo Y10 Strategic Markets 3A 27 24 24 2.3 1.6 1
Slide 33: 4. Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) ERC by Asset Class ERC by Geography Real Estate Other 1% | __ Secured markets Nordics ~ : YY | Markets 28% ERC by Industry DACH & UK Unsecur 22% 1% — ERC by Investment Type Forward flows 18% Other Realestate “5° 2% Telecom 6% Credit cards T% Finance 10% One-o
Slide 34: 5. Portfolio joint ventures
5. Portfolio joint ventures Investment share Investment (Intrum), Cash received to date Current ERC (Intrum), Current book value Geography Cir SEKM a, SEKM Cire Savoy Italy 59 5,027 758 508 226 Portland Italy 29 234 19 406 249 Cierzo Spain 40 230 0 253 107 Winter Italy 20 200 34 280 215 Sunrise 1 Gr
Slide 35: 6. Unsecured portfolio vintages
6. Unsecured portfolio vintages Unsecured Purchase Collec’ books, SEKM_ price to date 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 amo
Slide 36: 7. European market of NPLs and Stage 2 loans
7. European market of NPLs and Stage 2 loans Q4 2022 Snapshot EU/EEA EUR 357 bn - NPL in EUR bn and NPL 1.8% ratio to Total Loans - Stage 2 loans in EUR bn and Stage 2 ratio to Total Loans Sbn 1.8% 23bn 0.7% : 32bn 1.1% Franchise markets @ _ Northern Europe Middle Europe @ — Southern Europe @ © Tact
Slide 37: 8. Upcoming IR activities
8. Upcoming IR activities Q1'23 Physical roadshow * Organised by SEB -10n1's and group meetings * 28 April 2023 in Stockholm Financial calendar * 20 July 2023 Interim report for the second quarter + 25 October 2023 Interim report for the third quarter + 25 January 2024 Interim report for the fourth
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