Slide 1: Interim Report January — March 2020
Interim Report January — March 2020 May 6 2020 Mikael Ericson, President and CEO Anders Engdahl, CFO intrum
Slide 2: Q1 Highlights
Q1 Highlights A solid position in an uncertain world Diverging segment Sound ncial performance throughout the economic cycle Continued stable Cash EBITDA growth performance in Q1 Strong cash flow and growing Cash EBITDA - Liquidity position of SEK 13,5bn - Net debt/Cash EBITDA of 4.5x vs 4.3x year e
Slide 3: Outlook
Outlook Short term outlook uncertain — sideways development best assessment Slower economic activity to prevail for the foreseeable future Moderation of growth in PI mitigated by new case volumes —- Long-term trends intact intrum Based on the current outlook Q2 and Q3 Adj. EBIT will develop largely
Slide 4: Leading the Way During Covid-19
Leading the Way During Covid-19 We are guided by our values; Empathy, Ethics, Dedication and Solutions * Intrum employees are guided by our core values in their day-to-day work. Honouring our strong value based approach also means adapting to a changing environment * To ensure that we go to any leng
Slide 5: Our Daily Business Operations have Continued
= Our Daily Business O rations have Continued - Though In a Somewhat Different Shape Business Continuity Plans activated in all markets Intrum’s business clearly affected in a handful countries, in others moderate or limited impact 75 percent of Intrum’s work force switched to working remotely withi
Slide 6: Preparing for post Covid-19
Preparing for post Covid-19 Ensure efficient contingency planning 1. Benefitting from country-based support measures and participating in governmental support programmes where applicable 2. Temporary measures including furlough, re-prioritisation of internal projects and postponed recruitments intro
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Slide 8: Group Financials in Summary
Group Financials in Summary SEK M Q1 2020 Q1 2019 RTM FY 2019 Revenues 3333 3752 an 15 566 15 985 EBIT 459 1347 -66 1172 2060 Items affecting comparability -636 3 -4781 -4148 EBIT Adj 1095 1350 19 5953 6208 Net profit for the period 33 739 N.M -1057 -285 Earnings per share -0,25 5,63 N.M -8,64 -2,76
Slide 9: Credit Management Services
Credit Management Services Change RTM FY 2019 Revenues Adj 1705 1716 A 7003 7014 External Revenue Adj 1139 1179 -3 4696 4736 Segment Earnings Adj 420 412 2 1802 1793 Segment Earnings Margin Adj % 25 24 +1 ppt 26 26 External Revenue Growth: Organic % -4 FX Related % 1 Acquired % (0) Q1 Highlights * S
Slide 10: Strategic Markets
Strategic Markets FY 2019 Revenues Adj 1194 659 81 4793 4259 External Revenue Adj 1108 591 87 4520 4003 Segment Earnings Adj 102 103 A 1117 1118 Segment Earnings Margin Adj % 9 16 -7 ppt 23 26 External Revenue Growth: Organic % 35 FX Related % 2 Acquired % 78 Q1 Highlights * Segment revenue growth i
Slide 11: Portfolio Investments
Portfolio Investments Change FY 2019 Gross Collections 2784 2594 7 10 961 10772 Portfolio Amortisation -1129 -996 13 -4316 -4183, Other Revenue 66 193 -66 311 438 Revenues Adj 1721 1791 -4 6956 7027 Earnings from Joint Ventures 81 360 -78 900 1179 Segment Earnings Adj 1037 1289 -20 4693 4947 Segment
Slide 12: Portfolio Investment Collections vs. Active Forecast
Portfolio Investment Collections vs. Active Forecast Quarterly Performance for Gross Cash Collections Illustrating 2008-09 Performance Applied in 2020 115% 111% 111% 11% .% 110% % 109% 110% 408%. 107% 105% 105% 103% 100% 98% 90% 85% 207 2018 2019 QB Q218 GIB _Q4IB QI Q219 _QI19_Q4I9 120 Annual Perfo
Slide 13: Cash revenue, Pro forma Cash EBITDA, Operating Cash Flow
H1-18 FY-18 H1-19 FY-19 Q1-20 Cash revenue Proforma Cash EBITDA Operating Cash Flow
Slide 14: Funding Sources and Maturity Profile
Funding Sources and Maturity Profile Funding Sources, MSEK Maturity Profile, MSEK 60.000 18000 2375 3 53 866 + 2599 51.269 6 000 50 000 5000 2597 36502 4 000 40 000 12 000 10 000 30000 8000 20000 6000 4.000 10000 737 | 2.000 - = EUR Bonds PPs Other Cash 2020 ©2021 2022 2023-= 2024 2025 © 2028=S 2027
Slide 15: Net Debt & Illustrative Impact From New Investments
Net Debt & Illustrative Impact From New Investments Intrum and Italian SPV Leverage Incremental Portfolio Investment and Leverage Impact EKbn HI-18 _FY-18 _H1-19__FY-19 _Q1-20 ISEKm Qi Q2.. Qs 4 QS Q7__Qa Proforma Cash EBITDA 88 95 10,4 11,4 11,5 Collections 43 79 99 86 85 66 84 69 Net Debt 35,5 421
Slide 16: Resilient Business Model Through Economic Cycles
Resilient Business Model Through Economic Cycles Balancing the Benefits of An Integrated Business Model Resilient Performance Throughout the Cycle Peak Trough Consumer lending volumes Increasing Decreasing Credit origination quality Decreasing Increasing Volumes of defaulted claims Reducing Picking
Slide 17: Near-term Priorities
Slide 18: Short- and Medium-term Focus in 2020
Short- and Medium-term Focus in 2020 Ensure the well-being of our employees and that we can maintain productivity levels despite external headwinds in some markets Actively mitigate potential shortfalls in revenue and collection performance with additional appropriate savings initiatives Accelerate
Slide 19: Q&A
intrum Q&A
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Slide 21: Table of Contents
Table of Contents 1. Pro forma portfolio investments and ROI 2. Estimated remaining collections (ERC) 3. Unsecured portfolio vintages 4. Q1 2020 Segment overview 5. From EBIT to EBIT adjusted and Cash EBI 6. Cash flow 7. Balance sheet highlights 8. Upcoming IR activities intrum 21
Slide 22: Pro forma portfolio investments and ROI
18,0% 17,5% 17,5% 15,7% 14,7% 13,8% 14.0%
Slide 23: 2. Estimated Remaining Collections (ERC)
2. Estimated Remaining Collections (ERC) ERC* (SEK, billions) 80 68,6 70 60 50 40 30 20 10 =e "Total” — of which Italian JV LA a * . . inti um From Portfolio Investments and cash flows from Joint Ventures Cash Multiple (ERC/Current BV) as of 315 March 2020 =1,89 23
Slide 24: 2. Estimated Remaining Collections (ERC)
2. Estimated Remaining Collections (ERC) 120 100% 90% 10,0 | | 20% | 70% 80 60% ‘SEKbn | 6,0 50% | 40% 40 i 30% 20% 2» Pia, | | 10% i Deen Ba = 0.0 BS eee FS = 0% YIooy2 Y3 Ya YS Yé Y7 Y8 Y9 YIO YN YI2 YI8 Yia YI5 mStrategic Markets = Other markets mNordics = DACH & UK IERC di ion (SEKbn) Yi Y2 Y3 Y
Slide 25: 2. Estimated Remaining Collections (ERC)
2. Estimated Remaining Collections (ERC) ERC by Asset Class ERC by Geography Real Estate; 1% Other markets; | — Secured; 19% 24% \ Nordics; 22% DACH & UK; 21% __ —~ Unsecured; 80%. __— Strategic Markets; 34% ERC by Investment Type Forward Flows; Real Estate; 3% 13% | ERC by Industry Other, 6% Teleco
Slide 26: 3. Unsecured Portfolio Vintages
3. Unsecured Portfolio Vintages <2010 878 21.459 1612 23071 2,65x 2010 1940 4.422 968 5390 2,78x 2011 2.660 5602 1131 6733 2,53x 2,00x 2012 3670 710 1734 8844 24Ix 2013 3532 6128 1940 8.068 2,28x 1,50x 2014 3811 6 296 2769 9.065 2,38x 2015 4923 5688 4.307 9.995 2,03x 100% 2016 4.550 4736 4.554 9.289
Slide 27: 4. Q1 2020 Segment Overview
4. Q1 2020 Segment Overview Credit . Strategic Portfolio Q1 2020 ME respira Markets Investments Ciraplliaiiis Group Total ervices Reported revenue 1705 1194 1085 -652 3333 Items affecting comparability (IAC) - - 636 - 636 Adjusted Revenue 1705 1194 1721 ~652 3969 Reported service line earnings 420 1
Slide 28: 5. From EBIT to Adjusted EBIT and Cash EBITDA
5. From EBIT to Adjusted EBIT and Cash EBITDA FY 2019 EBIT 459 1347 -66 1172 2060 Positive Revaluations of Portfolio Investments ° -120 -800 -920 Negative Revaluations of Portfolio Investments. 636 104 1424 892 Impact from early termination of BPO - -146 Bi -147 Lindorff Integration Costs - 35, 189
Slide 29: 6. Cash Flow - Summary
6. Cash Flow - Summary SEKM FY 2019 Operating earnings (EBIT) 459 1347 2060 Amortisation and revaluation of portfolio 1764 980 4155 Amortisation/depreciation and impairment 338 288 4284 Net Interest -589 -526 -1392 Tax -80 “13 -802 Other 375 -624 193 Cash flow from operating activities (CFFO) 2267 1
Slide 30: 7. Balance Sheet Highlights
7. Balance Sheet Highlights FY 2019 Intangible fixed assets 40 844 38 001 40 239 - where of goodwill 33792 33714 33 358 Tangible fixed assets 1097 927 1100 Financial fixed assets 37 474 31 665 36 530 - where of portfolio investments 29 026 25 628 28 508 - where of shares in joint ventures 6 855 5477
Slide 31: 8. Upcoming IR Activities
8. Upcoming IR Activities Q1 Virtual Roadshow Additional events 2020 + Stockholm with ABG Sundal Collier * Handelsbanken Small & Mid Cap seminar, Stockholm, — Group audiocast and 1-1 audiocast meetings June 3 (TBC) * UBS Nordic Financial Services Conference, Stockholm, September 3 (TBC) Financial Ca
Slide 32: 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 33: Leading the way to a sound economy.
Leading the way to a sound economy. intrum