Slide 1: Interim report January-March 2014
Interim report January-March 2014 April 23rd 2014 Lars Wollung, CEO Erik Forsberg, CFO
Slide 2: Quarterly highlights
Quarterly highlights 32% RTM EPS growth EBIT growth (adjusted for currency and debt 18% portfolio revaluations) 14% Growth in operating cash flow 19% Return on purchased debt 688 MSEK investments in purchased debt 2(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 3: Financial summary
Financial summary Jan-Mar Jan-Mar Change FY 2014 2013 % 2013 Revenues, MSEK: 1 204 1 048 15 4 566 EBIT, MSEK: 283 236 20 1207 EBIT margin, %: 24 23 n/a 26 EPS growth, %: 21 68 n/a 41 Cash flow from operations, MSEK: 530 464 14 2305 Investments in purchased debt, MSEK: 688 920 -25 2475 Return on purc
Slide 4: Revenues and operating margin, rolling 12 months
Revenues and operating margin, rolling 12 months Revenues: SEK 4 722 M Operating margin: 27% SEK M Revenues % 4 500 EBIT 4 000 EBIT margin 25 3 500 3 000 2 500 20 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 Q1 Q2 Q3 Q4
Slide 5: Northern Europe
Regional development Market position Market leader Northern Europe Top 5 48 percent of total revenues Q1 Highlights • Good EBIT growth in several markets following increased PD investments during the past few years, combined Jan-Mar Jan-Mar Change Fx Adj with good cost control Excl. PD Revaluations
Slide 6: Central Europe
Regional development Market position Central Europe Market leader Top 5 28 percent of total revenues Other Q1 Highlights • Continued strong EBIT growth following past years’ uptake in PD Jan-Mar Jan-Mar Change Fx Adj investment levels, offsetting the short- Excl. PD Revaluations 2014 2013 % % term n
Slide 7: Western Europe
Market position Regional development Market leader Western Europe Top 5 24 percent of total revenues Other Q1 Highlights • Solid year-on-year development for EBIT, mainly from improved CMS growth and a relatively weak Q1 last Jan-Mar Jan-Mar Change Fx Adj year Excl. PD Revaluations 2014 2013 % % Rev
Slide 8: Credit Management Services
Credit Management Services 65 percent of total revenues Q1 Highlights • Revenue growth mainly from acquisitions and servicing of acquired Jan-Mar Jan-Mar Change Fx Adj PD portfolios Reported numbers 2014 2013 % % Revenues, SEKm 908 814 12% 9% • Service line earnings in line with last Service line ea
Slide 9: Financial Services
Financial Services 35 percent of total revenues Q1 Highlights • Revenue growth driven by strong increase in PD investments during Jan-Mar Jan-Mar Change Fx Adj recent years Reported numbers 2014 2013 % % Revenues, SEKm 485 388 25% 22% • Good collections for the quarter Service line earnings, SEKm 26
Slide 10: PD ROI – rolling 12 months
PD ROI – rolling 12 months PD carrying value: SEK 5 656 M ROI RTM, excl. reval: 21% SEK M 5 600 PD carrying value ROI RTM ROI RTM excl. reval 5 200 4 800 20% 4 400 4 000 3 600 15% 3 200 2 800 2 400 10% 2 000 1 600 1 200 5% 800 400 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
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 Q1 1 500 Q2 597 Q3 299 1 000 1804 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 rights reserve
Slide 12: Purchased debt – revaluations
Purchased debt – revaluations Q1 Q1 PD revaluations, SEK m 2014 2013 Northern Europe -12 -3 Central Europe 2 -2 Western Europe 0 1 Total -10 -4 12(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 13: Balance sheet – Highlights
Balance sheet – Highlights 31 Mar 31 Mar Dev SEK m 2014 2013 % Total assets 10 472 8 866 18 Goodwill 2 542 2 298 11 Total financial fixed assets 5 736 4 686 22 - whereof purchased debt 5 656 4 594 23 Shareholders' equity 3 275 3 057 7 Net debt/ R12 EBITDA* 1.68 1.54 * EBITDA = operating result befor
Slide 14: Cash flow statement
Cash flow statement Jan-Mar Jan-Mar Dev FY SEK m 2014 2013 % 2013 Operating earnings (EBIT) 283 236 20 1207 Depreciation 38 39 -3 157 Amortization and revaluation of purchased debt 360 318 13 1320 Income tax paid -45 -37 22 -111 Changes in factoring receivables -1 -8 n/a -89 Other changes in working
Slide 15: Funding base
Funding base • Syndicated bank loan facility (up to SEK 5bn) Debt Maturity Schedule ‒ SEK 2 bn utilized per March 2014 (SEK million) ‒ Loan facility allows a total financing of up to SEK 8 bn 2500 • Corporate bonds (up to SEK 3 bn under current 2000 MTN program) 1500 ‒ SEK 1 bn, 5Y note, issued in M
Slide 16: Financial targets
Financial targets Financial targets Q1 14 Q1 14 RTM FY 2013 1. EPS growth to exceed 10% per year 21% 32% 41% 2. Return on PD investments to exceed 15% per year 19% 21% 21% 3. Net Debt/EBITDA should be between 2.0 and 3.0 1.68 1.68 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 Avrg nr of employees in Q1 2014: 3 745 Listed on NASDAQ OMX, Stockholm, Large-Cap Market capitalization, March 31, 2014: SEK 13.7 billion Intrum Justitia's
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 5 750 5 500 5 250 5 000 4 750 4 500 4 250 4 000 3 750 3 500 3 250 3 000 2 750 2 500 2 250 2 000 1 750 1 500 1 250 1 000 750 500 250 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 -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% 31% 34% 80% 40% 38% 50% 48% 51% 52% 49% 51% 52% 70% 61% 59% 56% 60% 75% 79% 50% 40% 69% 74% 72% 70% 71% 69% 66% 30% 60% 62% 50% 52% 49% 48% 51% 49% 48% 20% 39% 41% 44% 10% 25% 21% Forward flows One-offs 0% Q1 Q2 Q3 Q4 Q1
Slide 24: A broad indication going forward
A broad indication going forward Carrying value 31 Mar 2014: SEK 5,656 M +23% y-o-y (SEK 4,594 M) Gross collection: Carrying value x 2.1 Cash flow distribution 31 Mar of Gross collection 2014 2013 Y1 23% 24% Y2 17% 17% Y3 13% 13% Y4 11% 10% Y5 9% 8% Y6 7% 7% Y7 6% 5% Y8 5% 4% Y9 4% 3% 24(25) © Intru
Slide 25: Intrum Justitia
intrum (~))) justitia Better business for all