Slide 1: Interim Report July — September 2023
Interim Report July — September 2023 25 October 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: Near term and long term actions to reach our targets
Near term and long term actions to reach our targets as laid out at our Capital Markets Day on 13 September Near term tactical measures Long term fundamental measures intrum Lower proprietary investments Cost reduction Exiting selected markets Tactically selling back book Become a tech driven compan
Slide 4: The way forward — three strategic pillars
The way forward — a journey underpinned by three strategic pillars Capital Operational light excellence Tech-driven operations Profitable growth through Value extraction and client centricity pivot to capital light intrum ‘
Slide 5: New financial targets for 2026
New financial targets for 2026 Growth ~10% CAGR External Servicing adjusted income growth intrum EBIT margin >25% Total Servicing adjusted EBIT margin Balance sheet intensity Leverage Dividend SEK 35x Subject ~30bn , to $3.5x Proprietary Leverage ratio by Dividends subject to Investing book value en
Slide 6: Third quarter 2023 highlights
Third quarter 2023 highlights Progress on strategic initiatives * Cost program savings of SEK ~350 Mon run-rate basis * Commercial focus with record ACV signings and increased win rate * Dialogues regarding back book disposal a rket exits progressing Recent achievements * Operational scorecards inte
Slide 7: Falling disposable income and increased pressure on payment terms
Falling disposable income and increased pressure on payment terms 24% of European customers overspend each month on average exceeding their budget by EUR 232’ >33% European's have failed to pay at least one bill in the last 12 months’ 66% of SMEs asked to extend payment terms of the respondents in o
Slide 8: Servicing: increased win rate and all-time high ACV sales
‘SEK bn SEKM Servicing: increased win rate and all-time high ACV sales ACV pipeline (New, Cross and Upsell) Cumulative win rate" Go) ‘21 3.0 Q3'23 25 26 0 34 212A 20 : [ [ | L Q2 Q4 Qi Q2 2001 2022 2023 ACV sales and total assets under management mmm ACV sales(LHS) | =Total AuM (RHS) Buildingcenter
Slide 9: Servicing: increasing income, cost program and digital solutions
Servicing: increasing income, cost program and digital solutions to drive margin improvement Adj. Income and adj. EBIT Margin for Servicing CAGR * RTM adj. income increased 5% vs. Q3 '22 * Cost program expected to support adj. EBIT margin development into 2024 30% 20% 21% . ee LJ L| L] 0% Q3 Q4 Ql Q
Slide 10: Investing: extracting value from existing book
Investing: extracting value from existing book RTM net cash extraction, SEK bn * RTM net cash extraction of SEK 4.8 bn vs. average of SEK 2.3 bn over last three years * Book value decreased to SEK 39 bn vs. SEK 41 bn Q2 ‘23 * Q3'23 SEK 530 M of new portfolio investments at an IRR of 18%, compared to
Slide 11: Investing: continued solid collectability in line with active forecast
Investing: continued solid collectability in line with active forecast RTM gross cash collections 11,746 10,846 Q3 Q4 Ql Q2 Q3 Q4 2020 2021 Performance index vs. active forecast 13,9131 Ql Q2 Q3 112% 102% Q3 Q4 Ql Q2 Q3 Q4 2020 2021 2023 100% Ql Q2 Q3 2023 Z < Lee a inti UMA rctesing sates of portfo
Slide 12: Empathy at scale - treating customers fairly
Empathy at scale - leading the way by treating customers fairly Helped 5.2 M individuals to become debt free with Intrum last 12 months Achieved 4.3 / 5.0 customer satisfaction rating last 12 months average Collected SEK 97 bn last 12 months of which SEK ~14 bn on own portfolios intrum Nordea Resear
Slide 13: Financials
Slide 14: Cost program on track with SEK ~350 M of cost savings
Cost program on track with SEK ~350 M of cost savings already achieved on a run-rate basis Fully addressable cost base of SEK ~6 bn SEK: bn realised in P&L SEK- bn realised on run-rate basis Potentially Q1'23 Savings RTM intrum Volume effect ‘on cost base at constant margin (also includes M&A and di
Slide 15: Updated financial disclosure for increased transparency
Updated financial disclosure for increased transparency Alignment Updated segmentation & strategy as per CMD Servicing & Investing Northern, Middle & Southern Europe and Tactical Markets intrum Ease of Use Consistency ighout with ility to “add across” Consistent definition of all line items Fully al
Slide 16: Group key financials
Group key financials: growing income for third consecutive quarter SEKM Q3 2023 Q3 2022 Change % RTM FY 2022 mNet Debt = Cash EBITDA ——Leverage ratio Income 4,959 4,530 9 20,002 19,368 Adjusted income 4,959 4,530 9 19,594 18,960 44 EBIT 509 -1,576 132 1,566 154 Items affecting comparability 844 3,14
Slide 17: Servicing: M&A positively impacting income growth
Servicing: M&A positively impacting income growth, margins still subdued i External income 2,785 2,447 10,957 10,424 Adjus ted E BIT Internal income 656 656 ° 2,718 2,664 Adjusted income 3,441 3,103 n 13,675 13,088 EBIT 298 62 381 1,603 1,669 2,272 Items affecting comparability 118 496 -76 669 1,065
Slide 18: Investing: resilient cash collections and value extraction
Investing: resilient cash collections and value extraction Gross cash collections Income 2,173 2,083 9,044 8,944 Index vs. active forecast Adjusted income 2,173 2,083 4 8,636 8,536 EBIT 1,266 -1,220 204 2,364 42 2 106. _ Items affecting comparability 73 2,564 -97 2,781 5,333 Adjusted EBIT 1,339 1,34
Slide 19: Funding: deleveraging is the key priority
Funding: deleveraging is the key priority Net debt development, SEK bn Maturity profile, SEK M 20.000 59.7 1.6 16.000 ee “1.0 12000 a7 8000 “ [| | | — 2023 2024 2025 2026 2027 2028 @2:23' Cash flow Investing” FX Q3'23 =P EUR bond = SEK MTN = PP &RCF utilised = Unutilised RCF Underwriting returns vs.
Slide 20: Medium term financial targets: progress since CMD
Medium term financial targets: progress since CMD in September 2023 Starting point (Q2 ‘23 RTM) SEK 10.6 bn Q3 2023 13% CAGR 2026 Target ~10% CAGR External Servicing adjusted income growth intrum 18% >25% Total Servicing adjusted EBIT margin SEK 41 bn SEK ~30bn Proprietary Investing book value excl.
Slide 21: Final Remarks
Slide 22: Near term and long term actions to deliver on our targets
Near term and long term actions to deliver on our targets Near term tactical measures Long term fundamental measures intrum Lower proprietary investments Cost reduction Exiting selected markets Tactically selling back book Become a tech driven company Intense commercial focus Leverage third-party ca
Slide 23: Q&A
Q&A intrum
Slide 24: Appendix
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Slide 25: Table of Contents
Table of Contents 1. Outstanding interest rate bearing debt 2. Pro forma portfolio investments and ROI 3. Current MoM 5. Portfolio joint ventures 6. Unsecured portfolio vintages 7. Upcoming IR activities intrum 25
Slide 26: Outstanding interest rate bearing debt
1. Outstanding interest rate bearing debt Currency ee amen Coupon rate Maturity date a acid ISIN EUR 469 5,409 «3.13% 7/5/2024 Biannually ‘1/15/2024 XS1634532748 sek 1500 1500 7.14% 10/1/2024 Quarterly —=«10/2/2023~—=—«SE0013102407 EUR 850 9,803 «4.88% 8/15/2025 Biannually 11/15/2028 XS2211136168 se
Slide 27: Pro forma portfolio investments and ROI
2. Pro forma portfolio investments and ROI SEKm 12000 11854 17.5% 17.5% 15.7% 14.7% 8.106 7,538 9.000 aa 139 7,324 11.8% 2,683 6000 3,780 5,012 4,258 1633 7,857 4n0 837 3141 831 5, 3000 8 2051 2,783 1,436 ey i ~~ 2015 2016 2017 2018 2019 2020 2022 2023 Portfolio ROI ex IAC and revaluations RTM Portf
Slide 28: Current MoM
3. Current MoM SEKM Q120 @220 Q320 Q420 Q121 Q221 Q321 Q421 Q122) Q222) —-Q322 Q422 Q123 Q223 Q323 Purchase price of portfolios acquired in 1,650 1,267 837 1256 1443 1,680 1445 2133 1675 3120 1,347 1147 1,675 «2854 ~~ 409 quarter Lifetime ERC of portfolios acquired in 3,036 2944 1791 2554 3190 3414
Slide 29: Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) 15-year ERC of SEK 81.5 bn SEK bn 12.0 29% of ERC due next 24 months 6.0 | [| q [ so i a - YI Y2 Y3 Y4 YS Y6 Y7 Y8 Yo Y10 Yu "Northern Europe = Middle Europe mSouthern Europe © Tactical Europe IERC distribution (SEKbn) Y1 Y2 Y3 Ya Y5 Yo Y7 Ys Y9 Y10 Yn Northe
Slide 30: Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) ERC by Asset Class Real Estate 1% __\ Secured 7% Unsecured 92% ERC by Investment Type Forward flows 18% One-off investments 85% intrum ERC by Geography Tactical Northern Europe. Europe 16% \ a Southern Europe 31% Midalle Europe 30% ERC by Industry Realestate
Slide 31: Portfolio joint ventures
5. Portfolio joint ventures Invectmentchare Investment Cash received to CurrentERC Current book value Portfolio Geography (Intrum), % (Intrum), date (Intrum), (Intrum), (Intrum), SEK M SEK M SEK M SEK M Savoy Italy 59 5,027 758 520 225 Portland Italy 29 234 36 399 242 Cierzo Spain 40 230 0 27 27 Win
Slide 32: Unsecured portfolio vintages
6. Unsecured portfolio vintages Peete Mies ae Constant currency vintage evolution for unsecured books 3,50x 2.80x ——— 2.10x vA 1,40x 0.70x 0.00x <2010 = 2011 YE =—-2013YE_-—«2015YE_- «2017YE_-—«2019YE | 2021YE 2023 YTD <2010 2010 2011 2012 2013 2014 2015 2016 2017 2018 178,724 —2019 2020 2021 2022 2
Slide 33: Upcoming IR activities
7. Upcoming IR activities Q3'23 roadshow Organised by SEB -10n1's and group meetings + 25 October 2023 — Physical SEB office (Stockholm) * 26 October 2023 — Online Organised by JPM * 6-7 November 2023 — Physical US (New York) Financial calendar + 25 January 2024 Full year report 2023 * 26 April 2024
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