Slide 1: Interim Report April — June 2020
Interim Report April — June 2020 July 23 2020 Mikael Ericson, President and CEO Anders Engdahl, CFO intrum
Slide 2: Faster return towards normality than anticipated
Faster return towards normality than anticipated Operational update « Majority of our markets that were impacted have opened up relatively fast, including the legal systems in Greece, Italy and Spain — our operations are approaching a normalised level ¢ All Intrum offices are open, though ensuring r
Slide 3: Stronger performance than expected
Stronger performance than expected Q2 Highlights Sequentially improved EBIT Stable Cash EBITDA and strong Strong recovery in Strategic perfor ice cash flow Markets * 1,345 MSEK well above first quarter * Cash EBITDA of SEK 2,7 bn * CMS reported slowing revenue and level of 1,095 MSEK . margins - ove
Slide 4: Encouraging outlook but with short term risks
Encouraging outlook but with short term risks Business trends Slower economic activity to prevail for the foreseeable future Moderation of growth in PI mitigated by new case volumes —- Long-term trends intact intrum Servicing and Investment volumes set to increase longer term but short term outlook
Slide 5: New supply expected to add to existing elevated stock
New supply expected to add to existing elevated stock Cost of risk for key European banks on the back of COVID-19 outbreak Key takeaways Change in Loan Loss Provisions 1Q20 vs. 1Q19 10,4x Q?7 Loan Loss Provisions increased EUR 120bn 64x 49x 43x 40x 39x 29% Average / Median:2.3x /1.9x. 26x 23 - 22 22
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Slide 7: Group Financials in Summary
Group Financials in Summary SEK M Q12020 Change% @22019 Change % FY 2019 Revenues 3.885 3333 7 3784 3 15 667 15985 EBIT 1,348 459 194 1475 9 1045 2.060 Items affecting comparability 5 -636 -86 -4 692 -4148 EBIT Adj 1345 1095 23 1561 14 5737 6208 Consolidated Net profit 671 -33 N.M 879 -24 -1265 -285
Slide 8: Credit Management Services
Credit Management Services Change RTM FY 2019 Revenues Adj 1590 1705 7 1741 9 6 853 7014 External Revenue Adj 1048 1139 -8 1194 12 4559 4736 Segment Earnings Adj 383 420 9 460 -17 1723 1793 Segment Earnings Margin Adj % 24 25 -1 ppt 26 -2 ppt 25 26 External Revenue Growth: Organic % -10 -4 FX Relate
Slide 9: Strategic Markets
Strategic Markets FY 2019 Revenues Adj 1265 1194 6 973 30 5085 4259 External Revenue Adj 1202 1108 9 903 33 4820 4003 Segment Earnings Adj 345 102 238 337 2 1125 1118 Segment Earnings Margin Adj % 27 9 +18 ppt 34 -7 ppt 22 26 External Revenue Growth: Organic % -16 =35 FX Related % 0 2 Acquired % 48
Slide 10: Portfolio Investments
Portfolio Investments Change (ey) Change 2019 RTM FY 2019 Gross Collections 2536 2784 9 2672 5 10 825 Portfolio Amortisation -994 -1129 12 -1068 7 -4 242 Other Revenue 90 66 36 79 14 322 Revenues Adj 1632 1721 5 1683 3 6905 Earnings from Joint Ventures 102 81 26 315 -68 687 Segment Earnings Adj 1003
Slide 11: Portfolio Investment Collections vs. Active Forecast
Portfolio Investment Collections vs. Active Forecast Quarterly Performance for Gross Cash Collections Collections vs. Active Forecast (Post-Covid!9) m Collections vs. Active Forecast (Pre-Covid!9) 115% 1M% 10% 105% 100% 95% 90% 85% 2017 2018 2019 Q118 Q2 18 Q3 18 Q4 18 Q119 Q219 G3 19 Q4 19 QI 20 Q2
Slide 12: Cash Flow Evolution
Cash Flow Evolution Q1 Cash EBITDA Growth In 25,0 20,0 ° ° H1-18 FY-18 H1-19 mCash revenue = Proforma Cash EBITDA CAGR(HI-18H1-20): 13% 12% [Proforma Cash Flow (LTM) H’ F Cash revenue 16,3, 16,6 Expenses -7,6 77 Cash EBITDA 88 89 M&A proforma 0,0 05 Working capital -0,7 -0,7 Non-cash adj. 0,2 0,2 Ne
Slide 13: Funding Sources and Maturity Profile
Funding Sources and Maturity Profile Funding Sources, MSEK 60000 2466 1254 20 52599 50 000 5.000 = 49717 34.633 "2062 40 000 w @ 30000 = 20 000 10.000 [| EUR Bonds PP Other Cash RCF SEK MTN cP Sum IRBD Net IRBD Available liquidity of SEK 11bn from cash balance and unutilised RCF Key Bond and RCF res
Slide 14: Net Debt & Illustrative Impact From New Investments
Net Debt & Illustrative Impact From New Investments Intrum and Italian SPV Leverage EKbn H-18 FY-18 HI-9 _FY-19 _H1-20 Proforma Cash EBITDA 88 95 10,4 1,4 11,2 NetDebt 353 421 45,0 49,1 49,7 Intrum ND/Cash EBITDA 40x 44x 43x 43x x Intrum ND/Cash EBITDA ex SPV portfolio 40x 39x 39K 39K Ax Italian SPV
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Slide 16: Short- and Medium-term Focus in 2020
Short- and Medium-term Focus in 2020 Despite approaching a normal state of business we remain vigilant and monitor developments closely and are prepared to adapt if necessary Accelerate internal transformation agenda by implementing a further standardised and global operating and collection process
Slide 17: Q&A
intrum Q&A
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Slide 19: Table of Contents
Table of Contents 1. Pro forma portfolio investments and ROI 2. Estimated remaining collections (ERC) 3. Unsecured portfolio vintages 4. Q2 2020 Segment overview 5. From EBIT to EBIT adjusted and Cash EBI 6. Cash flow 7. Balance sheet highlights 8. Upcoming IR activities intrum 19
Slide 20: Pro forma portfolio investments and ROI
18,0% 17,5% 17,5% 15,7% 14,7% 14.0% 12,5%
Slide 21: "Total" of which Italian JV
70 60 50 40 30 20 10 0 "Total" of which Italian JV
Slide 22: 2. Estimated Remaining Collections (ERC)
2. Estimated Remaining Collections (ERC) 12,0 . | SEKbn 60 ° | %° = = =e = | i | — 00 |_| |_| = = = = — = — MI y2 YB v4 Ys Yo v7 Y8 Y9 vio vn yin v3 v4 vIs mStrategic Markets = Other markets mNordics_ = DACH & UK ERC distribution (SEKbn) YI Y2 Y3__Y4 Y6 YJ Ys Y9 YO. YN —¥12, 13, YAS Strategic Market
Slide 23: 2. Estimated Remaining Collections (ERC)
2. Estimated Remaining Collections (ERC) Real Estate; 1% | Other markets; —~ Secured; 18% 23% = Nordics; 22% DACH & UK; 21%. oS __ Strategic Markets; yO 34% Unsecured; 81%. ERC by Investment Type ERC by Industry Forward Flows, Other; 6% 14% Real Estate; 3% Telecom; 5% Credit Cards; 9% _ Finance; 10%
Slide 24: 3. Unsecured Portfolio Vintages
3. Unsecured Portfolio Vintages <2010 8718 21752 1429 23 182 2,66x 2010 1940 4502 909 5411 2,79x 2011 2660 5700 1046 6747 2,54x 2012 3670 7 250 1618 8 869 2,42x 2013 3532 6291 1796 8 087 2,29x 2014 3811 6509 2573 9 082 2,38x 2015 4923 5923 4087 10 010 2,03x 2016 4550 4992 4277 9 269 2,04x 2017 7010
Slide 25: 4. Q2 2020 Segment Overview
4. Q2 2020 Segment Overview Credit Management Services Strategic Markets Portfolio Investments Group Items Q2 2020 Group Total Q1 2020 Group Total Reported revenue 1590 1265 1635 -604 3885 3333 7 Items affecting comparability (IAC) - - -3 - 3 636 Adjusted Revenue 1590 1265 1632 -604 3.882 3969 -2 Re
Slide 26: 5. From EBIT to Adjusted EBIT and Cash EBITDA
5. From EBIT to Adjusted EBIT and Cash EBITDA Change % Gren FY 2019 EBIT 1348 459 194 1475 9 1045 2060 Positive Revaluations of Portfolio Investments -44 2 -294 -549 -920 Negative Revaluations of Portfolio Investments. 4 636 292 1172 892 Impact from early termination of BPO - - -l - -147 Lindorff In
Slide 27: 6. Cash Flow - Summary
6. Cash Flow - Summary FY 2019 Operating earnings (EBIT) 1348 459 1475 2060 Amortisation and revaluation of portfolio 991 1764 1066 4155 Amortisation/depreciation and impairment 371 338 311 4284 Net Interest 21 -589 -121 -1392 Tax -131 -80 -100 -802 Other 299 375 -734 193 Cash flow from operating ac
Slide 28: 7. Balance Sheet Highlights
7. Balance Sheet Highlights FY 2019 Intangible fixed assets 39 330 40 844 40 513 40 239 - where of goodwill 32 809 33.792 35 036 33 358 Tangible fixed assets 1050 1097 N4 1100 Financial fixed assets 36 017 37 474 32 829 36 530 - where of portfolio investments 28 032 29 026 26 228 28 508 - where of s
Slide 29: 8. Upcoming IR Activities
8. Upcoming IR Activities Q2 Virtual Roadshow * Carnegie Investment Bank — 1-1 audiocast meetings Financial Calendar * Q2 report, July 23, 2020 * Q3 report, October 23, 2020 * Capital Markets Day, @4, 2020 + Q4 report, January 28, 2021 intrum Additional events 2020 UBS Nordic Financial Services Conf
Slide 30: 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 recommendat
Slide 31: Leading the way to a sound economy.
Leading the way to a sound economy. intrum