Intrum Ab · OMXSTO:INTRUM

Intrum Ab — Intrum Justitia — Q1 2013 Earnings Presentation

24 slides from Intrum Ab's earnings presentation, Apr 24, 2013

  1. Slide 1: Quarterly report January-March 2013

    Quarterly report January-March 2013 April 24th 2013 Lars Wollung, CEO Erik Forsberg, CFO

  2. Slide 2: Quarterly highlights

    Quarterly highlights 21% RTM EPS growth EBIT growth (adjusted for currency and debt 24% portfolio revaluations) 920 MSEK investments in purchased debt 510 MSEK purchased debt cash flow* 20% Return on purchased debt 2(24) *) Indicative Net Cash Flow, defined as PD Collections (excl other fin. rev.),

  3. Slide 3: Intrum Justitia's cash flow generation model

    Intrum Justitia’s cash flow generation model – a self-reinforcing cycle and a base for reaching our financial targets Clients Clients Clients Financing Clients and Clients and cases CMS cases PD Services Op. cashflow Stable and strong cash flow Our Financial Targets 1. EPS growth to exceed 10% per y

  4. Slide 4: Diversified and healthy PD portfolio generating a solid PD cash flow

    Diversified and healthy PD portfolio generating a solid PD cash flow Balanced risk diversification Solid PD cash flow MSEK 2000 1800 1600 CAGR: 18% 1400 1200 1000 PD cash flow 800 600 400 200 0 2008 2009 2010 2011 2012 4(24) © Intrum Justitia AB 2013. All rights reserved.

  5. Slide 5: Financial summary

    Financial summary Jan-Mar Jan-Mar FY 2013 2012 Change % 2012 Revenues, MSEK: 1 048 956 10 4 048 EBIT, MSEK: 236 160 48 879 EBIT margin, %: 23 17 N/A 22 EPS growth, %: 68 -14 N/A 6 Cash flow from operations, MSEK: 464 423 10 1 988 Investments in purchased debt, MSEK: 920 295 212 2 014 Return on purch

  6. Slide 6: Revenues and operating margin, rolling 12 months

    Revenues and operating margin, rolling 12 months Revenues: SEK 4 148 M Operating margin: 25% SEK M % Revenues 4 000 25 EBIT 3 500 EBIT margin 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 2005 2006 2007

  7. Slide 7: Northern Europe

    Regional development Market position Market leader Northern Europe Top 5 48 percent of total revenues Q1 Highlights Jan-Mar Jan-Mar Change Fx Adj • Similar trend as experienced during 2012, Excl. PD Revaluations 2013 2012 % % with increased PD investments driving top Revenues, SEKm 508 454 12% 15% l

  8. Slide 8: Central Europe

    Regional development Market position Central Europe Market leader Top 5 24 percent of total revenues Other Jan-Mar Jan-Mar Change Fx Adj Q1 Highlights Excl. PD Revaluations 2013 2012 % % • Good EBIT growth YoY, with positive impact Revenues, SEKm* 252 235 7% 13% of good PD investment growth during l

  9. Slide 9: Western Europe

    Market position Regional development Market leader Western Europe Top 5 28 percent of total revenues Other Q1 Highlights Jan-Mar Jan-Mar Change Fx Adj • Negative development for CMS revenues Excl. PD Revaluations 2013 2012 % % year on year Revenues, SEKm 292 308 -5% -1% • Increased focus on sourcing

  10. Slide 10: Credit Management Services

    Credit Management Services 68 percent of total revenues Q1 Highlights Jan-Mar Jan-Mar Change Fx Adj Reported numbers 2013 2012 % % • Year-on-year Service Line earning Revenues, SEKm 814 837 -3% 1% development continues to be negatively Service line earnings, SEKm 180 198 -9% -6% impacted by increase

  11. Slide 11: Financial Services

    Financial Services 32 percent of total revenues Jan-Mar Jan-Mar Change Fx Adj Q1 Highlights Reported numbers 2013 2012 % % Revenues, SEKm 388 231 68% 74% • Increased revenue and service line earnings Service line earnings, SEKm 207 101 105% 112% due to very strong growth in PD investments Service li

  12. Slide 12: PD ROI – rolling 12 months

    PD ROI – rolling 12 months PD carrying value: SEK 4 594 M ROI RTM, excl. reval: 20% SEK M PD carrying value ROI RTM ROI RTM excl. reval 4,400 4,000 20% 3,600 3,200 15% 2,800 2,400 2,000 10% 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 2008 2009 2010 2011

  13. Slide 13: Purchased debt, investments

    Purchased debt, investments 2002–2013 SEK M 2 500 2 014 2 000 FY Q1 1 500 753 Q2 Q3 299 1 000 1804 Q4 667 500 822 870 996 872 871 1050 920 258 201 267 295 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 13(24) © Intrum Justitia AB 2013. All rights reserved.

  14. Slide 14: Purchased debt – revaluations

    Purchased debt – revaluations Q1 Q1 PD revaluations, SEK m 2013 2012 Northern Europe -3 2 Central Europe -2 -1 Western Europe 1 -42 Total -4 -41 14(24) © Intrum Justitia AB 2013. All rights reserved.

  15. Slide 15: Balance sheet – Highlights

    Balance sheet – Highlights 31 Mar 31 Mar Dev SEK m 2013 2012 % Total assets 8 860 8 256 7 Goodwill 2 298 2 412 -5 Total financial fixed assets 4 680 3 410 37 - whereof purchased debt 4 594 3 153 46 Shareholders' equity 3 092 2 904 7 Net debt/ R12 EBITDA* 1.54 1.30 18 15(24) * EBITDA = operating resu

  16. Slide 16: Cash flow statement

    Cash flow statement Jan-Mar Jan-Mar Dev FY SEK m 2013 2012 % 2012 Operating earnings (EBIT) 236 160 48 879 Depreciation 39 42 -7 187 Amortization and revaluation of purchased debt 318 282 13 1 133 Income tax paid -37 -49 24 -145 Changes in working capital -48 13 n/a 52 Financial Net & other non-cash

  17. Slide 17: Financial targets

    Financial targets Financial target Q113 RTM FY 2012 1. EPS growth to exceed 10% per year 21% 6% 2. Return on PD investments to exceed 15% per year 19% 17% 3. Net Debt/EBITDA should be between 2,0 and 3,0 1.54 1.47 17(24) © Intrum Justitia AB 2013. All rights reserved.

  18. Slide 18: Q&A

    Q&A 18(24) © Intrum Justitia AB 2013. All rights reserved.

  19. Slide 19: Appendix

    Appendix 19(24) © Intrum Justitia AB 2013. All rights reserved.

  20. Slide 20: Intrum Justitia in brief

    Intrum Justitia in brief Europe’s leading provider of credit management services, with operations in 20 countries Revenue 2012: SEK 4.1 billion Avrg nr of employees in Q1 2013: 3 422 Listed on NASDAQ OMX, Stockholm, Mid-Cap Market capitalization, Mar 31, 2013: SEK 10.1 billion Intrum Justitia's mark

  21. Slide 21: 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

  22. Slide 22: Purchased debt, carrying value

    Purchased debt, carrying value SEK M 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 22(24) © Intrum Justitia AB 2013. All rights reserved.

  23. Slide 23: One-offs vs Forward Flow, as a % of PD Investments

    One-offs vs Forward Flow, as a % of PD Investments 23(24) © Intrum Justitia AB 2013. All rights reserved.

  24. Slide 24: A broad indication going forward

    A broad indication going forward Carrying value 31 Mar 2013: SEK 4,594 M +46% y-o-y (SEK 3,153 M) Gross collection: Carrying value x 2.1 Cash flow distribution 31 Mar of Gross collection 2013 2012 Y1 24% 26% Y2 17% 18% Y3 13% 13% Y4 10% 10% Y5 8% 8% Y6 7% 6% Y7 5% 5% Y8 4% 4% Y9 3% 3% 24(24) © Intru

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