Slide 1: Interim Report July — September 2022
Interim Report July — September 2022 27 October 2022 Andrés Rubio, Acting President and CEO Michael Ladurner, CFO intrum
Slide 2: Today’s presenters
Today’s presenters Andrés Rubio Michael Ladurner Acting President and Chief Chief Financial Officer Executive Officer intrum
Slide 3: ONE operating platform driving two businesses
ONE operating platform driving two businesses Servicing Portfolio Investments * c.250,000 customers contacted daily * c.SEK 40 bn book value & c. SEK 83 bn of ERC + c.80,000 clients * ¢.19,000 portfolio batches + c. SEK 10 bn external & SEK 3 bn internal revenues RTM + c. SEK 13 bn gross collections
Slide 4: Servicing: Increasing demand for Servicing solutions
Servicing: cS Increasing demand for Servicing solutions ee Market dynamic Inflationary pressures continue with consumer prices in the Euro area now up 10% from Q3 ‘21 Significantly increased cost of borrowing, the ECB has increased the policy rate cumulatively by 125bps since July with additional in
Slide 5: Servicing: Collections driving costs, revenue conversion still lagging
Servicing: Collections driving costs, revenue conversion still lagging CAGR Q1'21- Q3 ‘22: AuM', SEK bn Inflection . Oo: , 30 Point + AuM increased by 10% in Q3 ‘22 7 vs. Q3'21 Ga) * Overall activities underpinning increasing collections are driving 27 4 Total Collections some incremental costs desp
Slide 6: Portfolio Investments: Initial indications of repricing
Portfolio Investments: Initial indications of repricing Market dynamic Increasing uncertainty and higher funding costs for sector, supply of portfolios stable at present Non-payers generally more challenging to activate in adverse macro Banks’ NPL stocks are expected to increase due to economic situ
Slide 7: Portfolio Investments: Highly resilient performance in past crises
Portfolio Investments: Highly resilient performance in past crises Gross collections, SEK bn Performance Index, RTM% 120 15 110 0.8 Avg. Orit inal 108 A a Ke ae ores, 100 \ Low point: 99% Low point: 98% 95 intrum 2004 05 06 07 08 09 10 11 12 13 14 Global Financial & European Sovereign Crises (2007 -
Slide 8: ONE Intrum transformation program: Ambition level of SEK 1 bn reconfirmed
ONE Intrum transformation program: MX Ambition level of SEK 1 bn of recurring benefits reconfirmed ONE Intrum Transformation program spend, SEK M 2020 2021 2022 2023 150 1500 + Ambition level of at least SEK 1 bn 100 1000 of recurring benefits validated in 50 500 context of CEO change : Q420 Qi21 Q2
Slide 9: ONE Intrum transformation program: KPIs
ONE Intrum transformation program: KPIs FTE cost-to-collect RTM, % 7.0% 6.5% 6.0% 5.5% 5.0% 45% 4.0% uarterly actuals RTM actuals 2021 2022 2023, Planned vs. realised program savings, run-rate SEK M RTM target Quarterly target 1,500 2023 P&L savings: 0.7 bn SEK 1,000 2022 P&L savings: 0.1 bn SEK 202
Slide 10: We play a critical role in the wider economic system
We play a critical role in the wider economic system Customers Individuals repay their debts and feel better Employees Our employees are able to grow and contribute to the financial ecosystem intrum % Leading the way to a sound economy Clients Companies can grow, invest, employ and prosper Economy .
Slide 11: Resilient, growing cash generation and strong capital return whilst deleveraging
Resilient, growing cash generation and strong capital return whilst steadily deleveraging since 2018 merger Profitable Growth, SEK bn — Asset Growth and Steady Deleveraging Total assets, Shareholder Remuneration, SEK M 1,628 1,306 Be one skin QD @ 13.2 70.3, 98 4.3x 4.0x 2018 RTM Q3' 22 2018 RTM Q3'
Slide 12: Financials
Slide 13: Group key financials: Growth across the board in seasonally slower third quarter
Group key financials: Growth across the board in seasonally slower third quarter SEK M Q3 2022 @32021 Change % RTM FY 2021 Cash revenues 5810 5322 9 23921 22 215 Cash expenses -2 800 -2 417 16 -10 741 -9 905 Cash EBITDA 3009 2906 4 13179 12 310 Replenishment capex -1533 1443 6 -6 303 -5 654 Other ca
Slide 14: Group cash earnings generation
Group cash earnings generation: Substantial, growing cash generation YoY 40 35 35 34 RTM, SEK bn ol 29 5 * Year over year 10% cash revenues 39 20 growth translating into 25% 10 recurring cash earnings growth i / \ Hp we * Highlights resilience and 2020 2021 2022 . . 132 \ " TS operating leverage als
Slide 15: Credit Management Services: Increasing AuM and collections
Credit Management Services: Increasing AuM and collections SEK M Q3 2022 Q32021 Change % RTM FY 2021 Cash revenues 1042 996 4171 4102 Cash EBITDA 360 416 1476 1701 Other capex -14 -21 =37 -61 Cash EBIT 346 396 1439 1640 Avg. invested capital 20 086 19 174 19 426 19 103 Segment cash RoIC, % 6.9 8.3 7
Slide 16: Strategic Markets: Yet another strong quarter across all geographies
Strategic Markets: Yet another strong quarter across all 3 geographies SEK M Q3 2022 @32021 Change % RTM FY 2021 Cash revenues 1412 1160 22 6189 5624 Cash EBITDA 718 494 45 3648 3.080 Other capex -19 -12 55 -77 -72 Cash EBIT 699 482 45 3571 3.009 Avg. invested capital 15 056 15 526 -3 14 934 15 504
Slide 17: Portfolio Investments: Continued outperformance with index of 106%
Portfolio Investments: Continued outperformance with index of 106% SEK M Q3 2022 Q32021 Change % RTM FY 2021 Cash revenues 3356 3166 6 13 561 12 489 Cash EBITDA 2532 2350 8 10 210 9216 Replenishment capex 1533. 1443 6 -6 303 -5 654 Cash EBIT 999 907 10 3907 3561 Avg. invested capital 41 587 36 478 1
Slide 18: Portfolio Investments: Negative adjustments following Q3 revaluations
Portfolio Investments: Negative adjustments following Q3 revaluations Revaluation impact, MSEK Before (Q2) Adjustments After (Q3) | ERC | Total ERC affected exposures SEK 7.3 bn SEK 1.6 bn SEK 5.7 bn Book value portfolio JVs 6,544 3,879 -2,665 CS Book value client relationship 1,446 -393 1,053 sheet
Slide 19: Funding: Ample liquidity and no significant maturities until ’24
Funding: Ample liquidity and no significant maturities until ‘24 Underwriting returns vs. funding cost 16.0% 12.0% a _, * Return gap of 3.3x with increasing > IRR on new investments as well 8.0% | as cost of funds 4.0% * Avg. IRR of c. 15% and MoM of - 2.30x for new investments in Q3 Q318 Q418 Q119
Slide 20: Funding: Assets and liabilities repricing dynamically
Funding: Assets and liabilities repricing dynamically, resilient cash generation Assets (EoP Q3' 22) BV ERC SEK 40 bn | SEK 83 bn * Self liquidating assets with RTM gross collections of c. SEK 13 bn + Average performance index vs. original forecast of 106% since 2004 + Low point of 98% in past crise
Slide 21: Medium-term financial targets: Significant progress since CMD
Medium-term financial targets: Significant progress since CMD in November 2020 a EOL EIS — FON By >10% * Alltarget metrics slightly subdued CashRolc 67% 60% 74% 776 Ges Sas oe in seasonally slower Q3, however, (RTM) | | iil il [ i [ | | I significant progress since CMD in November 2020 Q120 Q220 Q32
Slide 22: Final remarks
| remarks F
Slide 23: Final remarks
Final remarks Servicing + Macro to drive increasing new case inflows, also from financial services, and improving margins * Continued and relentless focus on new client signings in context of increasing demand for our services * Cost pressures in inflationary environment to be addressed with increas
Slide 24: Q&A
Q&A intrum
Slide 25: Appendix
intrum x
Slide 26: Table of Contents
Table of Contents 1. Outstanding interest rate bearing debt 2. Pro forma portfolio investments and ROI 3. Current MoM for replenishment capex calculation 4. Estimated Remaining Collections (ERC) and collection performance nsecured portfolio vintages 6. Upcoming IR activities | intrum 26
Slide 27: 1. Outstanding interest rate bearing debt
1. Outstanding interest rate bearing debt upon rate Maturity SEK 2900 532% 7/3/2023 Quarterly 01/3/2023 $E00T1426295 EUR 900 9809 3.13% 7/5/2024 Biannually 1/16/2023 XS1634532748 SEK 1500 1500 514% 10/1/2024 Quarterly 01/2/2028: SE0013102407 o 2 eur 850 9264 4.88% 8/15/2025 Biannually —*11/15/2022,-
Slide 28: Pro forma portfolio investments and ROI
17.5% 17.5% 15.7% 14.7% 14.4% 14.4% 14.0% 11.8%
Slide 29: 3. Current MoM for replenishment capex calculation
3. Current MoM for replenishment capex calculation Purchase price of portfolios 957 2538 1277 1436 831-«3780 1650 1267 837 1256 1443 1680 1445 2133 1675 3120 1347, acquired in quarter Lifetime ERC of portfolios 5 395 4727 2669 2811 1856 7165 3036 2944 1791 2554 3190 3414 2794 4239 3667 5589 309% acq
Slide 30: 4. Estimated Remaining Collections (ERC) and collections performance
4. Estimated Remaining Collections (ERC) and collections performance SEK bn 80 70 * 180m ERC at SEK 82.8 bn 40 30 * Collections during the third 20 quarter continued to strongly ae ee eee outperform active forecast at YI Y2 Y3 Y4 YS Y6 Y7 Y8 Y9 YIO YI YI2 YI3. YI4 YIS 1 06% italian porftfolio ERC ER
Slide 31: 4. Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) ft [| U a o vt Dinace : Yo YI Y2 Y3 Y4 YS Y6 Y7 Y8 mStrategic Markets Other markets mNordics ERC (SEK bn) Y1 Y2 Y3 Y4 Y5 Y6 Y7 Strategic Markets 27 24 23 34 29 24 2.0 Other markets 37 29 23 18 15 1.2 1.0 Nordics 28 25 2.2 19 17 16 14 DACH & UK 28 23 2.0 17 14
Slide 32: 4. Estimated Remaining Collections (ERC)
4. Estimated Remaining Collections (ERC) Real Estate 1% _\ ERC by Geography Other _— Secured markets Nordics S % 28% 25% DACH & UK Unsecured 21% 85% _— ERC by Investment Type Forward flows 14% Strategic Markets 31% ERC by Industry Realestate ner 2% Telecom 5% Credit cards T% Finance 10% One-off inve
Slide 33: 5. Unsecured portfolio vintages
5. Unsecured portfolio vintages Unsecured Purchase Collec’ 5 books, SEKM price men Constant currency vintage evolution for unsecured books Gross money-on-money multiple: Gross money-on-money multiple means the actual gross collections to date, plus ERC as of the same date divided by the total amount
Slide 34: 6. Upcoming IR activities
6. Upcoming IR activities Q3 ‘22 Virtual Roadshow Additional investor events * Organised by Citibank and ABG Sundal Collier . . . -10n 1's and group audiocast meetings SEB Nordic Seminar 9-11 January 2023 Financial calendar * 26 January 2023 Full-year report 2022 intrum u
Slide 35: 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 36: Leading the way to a sound economy.
Leading the way to a sound economy. intrum