Slide 1: Interim Report July — September 2020
Interim Report July — September 2020 23 October 2020 Anders Engdahl, President and CEO Michael Ladurner, Acting CFO intrum
Slide 2: Today's presenters
Today’s presenters intrum Anders Engdahl President & Chief Executive Officer Michael Ladurner Acting Chief Financial Officer
Slide 3: Strong quarter but uncertainties remain
Strong quarter but uncertainties remain . A Q3 Highlights Catch-up effects offsetting Cash EBITDA and Cash Flow Strong rebound in Strategic normal seasonality growth reducing leverage Markets ° Adj. EBIT of 1,687 MSEK 25% ahead of Cash EBITDA of SEK 3.1 bn + CMS revenue impacted by Covid-19 Q2 despi
Slide 4: Second wave increases uncertainty in near term outlook
Second wave increases uncertainty in near term outlook Business trends The economic outlook remain fragile as economic support and stimulus is reduced After growth moderating in 2020, 2021 is set to gradually normalise intrum Servicing and Investment volumes set to increase longer term but short ter
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Slide 6: Group Financials in Summary
Group Financials in Summary SEK M Q3 2020 Q2 Change% @32019 Change % RTM FY 2019 Revenues 4521 3885 16 3786 19 16 402 15985 EBIT 1688 1,348 25 1375 23 1358 2.060 Items affecting comparability 1 5 -101 -4591 -4148 EBIT Adj 1687 1345 25 1476 14 5948 6208 Consolidated Net profit 864 671 29 579 49 -979
Slide 7: Credit Management Services
Credit Management Services Change FY 2019 Revenues Adj 1647 1590 4 1764 7 6736 7014 External Revenue Adj 1089 1048 4 1190 9 4458 4736 Segment Earnings Adj 482 383 26 489 -1 1716 1793 Segment Earnings Margin Adj % 29 24 +5 ppt 28 +1 ppt 25 26 External Revenue Growth: Organic % -4 -10 FX Related % -4
Slide 8: Strategic Markets
Strategic Markets Change RTM FY 2019 Revenues Adj 1738 1265 37 961 81 5 862 4259 External Revenue Adj 1637 1202 36 899 82 5 558 4003 Segment Earnings Adj 515 345 49 161 219 1479 1118 Segment Earnings Margin Adj % 30 27 +3 ppt 7 +13 ppt 25 26 External Revenue Growth: Organic % 28 -16 FX Related % -4
Slide 9: Portfolio Investments
Portfolio Investments Q3 Change 2019 % RTM FY 2019 Gross Collections 2700 2536 6 2679 1 10 846 Portfolio Amortisation -972 -994 -2 -1061 8 -4153 Other Revenue 66 90 -20 69 4 319 Revenues Adj 1794 1632 10 1687 6 7012 Earnings from Joint Ventures 60 102 41 310 -81 437 Segment Earnings Adj 1093 1003 9
Slide 10: Portfolio Investment Collections vs. Active Forecast
Portfolio Investment Collections vs. Active Forecast Quarterly Performance for Gross Cash Collections Collections vs. Active Forecast (Post-Covid19) 99% of pre Covic-19 Gross Cash Collections pre-2019 vintages (Jan-19 = 100) mm Performance vs Forecast. —==Cash Collections Original Forecast 120% fore
Slide 11: Cash Flow Evolution
Cash Flow Evolution Q3 Cash EBITDA Growth In Line with Historical Track-Record Q3 LTM Cash Flow and Capital Allocation Priorities 25,0 25,0 25 215 20,0 20.0 163 - ng . ns 00 my 03 150.0 10.0 88 10,0 =10.0. = 103 men 9.6 65 “2 -O7 50 | I 50 00 00 Hig FY-18 HHO FY-19 H1-20 3-20 Cash revenue Cash EBITD
Slide 12: Funding Sources and Maturity Profile
Funding Sources and Maturity Profile Funding Sources, MSEK 60 000 155312 51.297 50 00 2484 my 50 000 6000 To coo zon 40 000 30.000 20 000 10000 3720 RCF EUR Bonds SEK MTN PP cP Other SumIRBD Cash Net IRBD Available liquidity of SEK 16 bn from cash balance and unutilised RCF Key Bond and RCF restrict
Slide 13: Net Debt overview
Net Debt overview Intrum and Italian SPV Leverage Net Debt ratio to ERC and External Revenue share mmm Net debt/ERC ——-External Servicing revenue (RHS) EKbn H1-18 _FY-18 _H1-19 _FY-19 _H1-20 Q3-20} 100% 65% Proforma Cash EBITDA 88 95 10,4 11,4 11,2 11,5 90% gS Net debt share of total ERC 80% 60% Net
Slide 14: Near-term Priorities
Slide 15: Short- and Medium-term Focus
Short- and Medium-term Focus True effects & impact from pandemic remain uncertain but history shows our organisation & business model is well equipped to face challenges Accelerate internal transformation agenda by implementing a further standardised and global operating and collection process Opera
Slide 16: Q&A
intrum Q&A
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intrum
Slide 18: Table of Contents
Table of Contents 1. Pro forma portfolio investments and ROI 2. Estimated remaining collections (ERC) 3. Unsecured portfolio vintages 4. Q3 2020 Segment overview 5. From EBIT to EBIT adjusted and Cash EBI 6. Cash flow 7. Balance sheet highlights 8. Upcoming IR activities intrum 18
Slide 19: Pro forma portfolio investments and ROI
18,0% 17,5% 17,5% 15,7% 14,7% 14.0% 12,0%
Slide 20: 2. Estimated Remaining Collections (ERC)
2. Estimated Remaining Collections (ERC) Cash Multiple (ERC/Current BV) ERC* (SEK, billions) as of 30* September 2020 =1,84 70 64,4 60 50 40 30 20 10 i} Sa ss * jms "Total" ——of which Italian JV LA a * . . inti um From Portfolio Investments and cash flows from Joint Ventures 20
Slide 21: 3,4 2,4 1,6 1,3 0,9 0,8 0,6 0,5 0,4 0,4 0,2 0,1 0,0 2,2
3,4 2,4 1,6 1,3 0,9 0,8 0,6 0,5 0,4 0,4 0,2 0,1 0,0 2,2 1,7 1,3 0,8 0,6 0,5 0,4 0,3 0,3 0,2 0,2 0,1 0,0 1,6 1,4 1,3 1,2 1,0 0,9 0,8 0,7 0,6 0,5 0,3 0,1 0,0 1,6 1,3 1,1 0,9 0,8 0,7 0,6 0,5 0,5 0,4 0,2 0,1 0,0 8,9 6,9 5,4 4,2 3,4 2,9 2,4 2,1 1,8 1,5 0,9 0,5 0,1 1,8 1,0 0,4 0,3 0,1 0,1 - - - - - - -
Slide 22: 2. Estimated Remaining Collections (ERC)
2. Estimated Remaining Collections (ERC) Real Estate; 1% Other markets | — Secured ; 18% 24% \. > _Nordics; 23% DACH & UK; 20%, ~~ Unsecured ; 81%. __-Strategic Markets y 34% ERC by Investment Type ERC by Industry Forward Flows, Other; 6% 14% Real Estate; 3% Telecom; 5% Credit Cards; 9% _ Finance; 1
Slide 23: 3. Unsecured Portfolio Vintages
3. Unsecured Portfolio Vintages A B c B+c B+C/A ‘ __ <2010 878 21897 1345 23.241 2,67« 2808 2010 1940 4.562 865 5426 2,80x 2011 2.660 5779 984 6763 2,54x 2,00x 2012 3670 7356 1535 8891 2,A2x 2013 3532 6414 1684 8.098 2,29 1,50x 2014 3811 6672 2427 9.099 2,39 2015 4923 6104 3937 10 041 2,04x 100« 201
Slide 24: 4. Q3 2020 Segment Overview
4. Q3 2020 Segment Overview Credit A i Management Strategic Portfolio Group Items Q3 2020 Q2 2020 Change % Servi Markets, Investments Group Total Group Total ervices Reported revenue 1647 1738 1795 -659 4521 3 885 16 Items affecting comparability (IAC) - - 1 - -1 3 Adjusted Revenue 1647 1738 1794 ~6
Slide 25: 5. From EBIT to Adjusted EBIT and Cash EBITDA
5. From EBIT to Adjusted EBIT and Cash EBITDA Change % Stee FY 2019 EBIT 1688 1348 25 1375 23 1358 2060 Positive Revaluations of Portfolio Investments 7” 44 -131 -490 -920 Negative Revaluations of Portfolio Investments. 71 4 122 1120 892 Impact from early termination of BPO - - - - -147 Lindorff Int
Slide 26: 6. Cash Flow - Summary
6. Cash Flow - Summary FY 2019 Operating earnings (EBIT) 1688 1348 1375 2060 Amortisation and revaluation of portfolio 971 991 1052 4155 Amortisation/depreciation and impairment 485 371 301 4284 Net Interest -784 21 -587 1392 Tax -135 131 -267 -802 Other -167 299 -568 193 Cash flow from operating ac
Slide 27: 7. Balance Sheet Highlights
7. Balance Sheet Highlights FY 2019 Intangible fixed assets 39109 39 330 40755 40 239 - where of goodwill 32 855 32 809 35 407 33 358 Tangible fixed assets 1079 1050 867 1100 Financial fixed assets 35 893 36 017 33 637 36 530 - where of portfolio investments 27966 28 032 26 279 28 508 - where of sha
Slide 28: 8. Upcoming IR Activities
8. Upcoming IR Activities Q3 Virtual Roadshow Additional events 2020 + Morgan Stanley * Capital Markets Day roadshow, Digital — 1-1 audiocast meetings November * Goldman Sachs EMEA Leveraged Finance conference, Digital 8 December Financial Calendar * Q3 report, 23 October 2020 * Capital Markets Day,
Slide 29: 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 30: Leading the way to a sound economy.
Leading the way to a sound economy. intrum