Slide 1: Interim Report April — June 2019
Interim Report April — June 2019 18% of July 2019 Mikael Ericson, President and CEO Anders Engdahl, CFO intrum
Slide 2: Market Outlook
Market Outlook Continued strong market momentum ¢ Portfolio sales and outsourcing continue to grow, even in mature markets * Continued regulatory pressure on banks Favourable underwriting environment * Clear improvement in pricing picture across multiple markets * Strong pipeline across all categori
Slide 3: 2019 — highlights from Q2
2019 — highlights from Q2 Continued steady progress ¢ EBIT Adjusted up 31% - Partnership in Italy delivers a significant step up, stable in other units * Stable performance from Portfolio Investments * CMS performance improving and further efficiencies planned * Temporary increase in leverage but on
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Slide 5: Group financials - summary
Group financials - summary Q2 2019 Q2 2018 Change % FY 2018 Revenues 3784 3630 4 14 233 13 442 EBIT 1475 1240 19 4 663 3978 Adjustments (Adj) -86 44 -579 -522 EBIT Adj 1561 1196 ‘i 5242 4500 Net profit for the period 879 701 25 2496 1943 Earnings per share 6,26 5,33, 7 19,02 14,18 CMS Revenue Growth
Slide 6: Credit Management Services
Credit Management Services SEKM Change FX Adjust All figures adjusted % % RTM FY 2018 Revenues 2714 2428 12 10 | 9709 9 257 Service Line Earnings 798 687 16 14 | 2 567 2489 Service Line Earnings Margin, % 29 28 +1 ppt | 26 27 Q2 Highlights * Seasonally good quarter reflected across the group + Meani
Slide 7: Portfolio Investments
Portfolio Investments RTM FY 2018 SEK M Change FX Adjust 9 9 All figures adjusted % % Revenues 1683 1589 6 4 | 6 696 Service Line Earnings 1214 883 37 35 | 4322 Service Line Earnings Margin, % 72 56 +17 ppt | 65 Investments 1436 2385 -40 | 10809 ROI% 15 14 +1 ppt | 14 Portfolio Investments Book Valu
Slide 8: Northern Europe
Northern Europe SEK M FX Adjust All figures adjusted , late Revenues 1071 1020 5 4 | 4127 4002 EBIT 433 400 8 7 | 1486 1425 EBIT Margin % 40 39 +1 ppt | 36 36 Portfolio Investment Book Value 8379 7237 16 | 8379 7 567 Q2 Highlights * Solid quarter across the region from all countries * Positive momen
Slide 9: Central & Eastern Europe
• • New regional division is applied from Q3 2018. Central & Eastern Europe (CEE): Austria, Czech Republic, Germany, Greece, Hungary, Poland, Romania,Slovakia and Switzerland 9
Slide 10: Iberian Peninsula & Latin America
Iberian Peninsula & Latin America SEKM Change FX Adjust RTM All figures adjusted ho % Revenues 818 828 1 3 2793 EBIT 207 296 -30 -32 | 817 EBIT Margin % 25 36 -10 ppt | 29 Portfolio Investment Book Value 4518 47 10 | 4518 Q2 Highlights * EBIT continues to be impacted by declines from older BPO contr
Slide 11: Western and Southern Europe
Western and Southern Europe SEKM Change FX Adjust RTM All figures adjusted % % Revenues 899 657 37 35 3126 EBIT 511 139 268 265 | 1363 EBIT Margin % 57 21 +36 ppt | 44 Portfolio Investment Book Value 11405 6787 68 | 11405 Q2 Highlights * — Strong quarter on quarter comparison primarily driven by ste
Slide 12: Italy improving CMS - Group impact in Q2 2019
Italy improving CMS - Group impact in Q2 2019 Total performance in line with plan SEKm All figures adjusted Revenue Service Line Earnings Common Costs EBIT (CMS Margin / PI ROI Cash Flow to Intrum CMS Platform 32% Ramping up towards plan Full Portfolio SBM 24% In line with plan Limited Senior debt p
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Slide 14: Common costs
Common costs SEKM Change FX Adjust Allfigures adjusted % % RTM FY 2018 Common Costs -451 -374 21 18 -1647 -1505 Q2 Highlights + Impacts of M&A (Intesa and Solvia) drive increase versus last year + Underlying cost approximately SEK 25m lower versus Q1 * — Significant opportunities to drive further re
Slide 15: Targeting €60m additional efficiency improvements by end of 2019
Targeting €60m additional efficiency improvements by end of 2019 €60m efficiency improvement program supports the 2020 targets and ensures long-term profitable growth — approximately 1/3 of improvement to come in Spain To be realised in H2 2019 providing full year P&L benefits in 2020 with cost to r
Slide 16: Near term priorities
Slide 17: Short and medium term focus in 2019
Short and medium term focus in 2019 Continued ramp-up of platform performance in Italy Realise €60m further efficiency targets Focus on disciplined sourcing Detailed operational planning to prepare for closing of Piraeus partnership intrum 7
Slide 18: Q&A
intrum Q&A
Slide 19: intrum
intrum
Slide 20: Table of contents
Table of contents 1. Funding base 2. Pro forma portfolio investments and ROI 3. Portfolio investments collections vs active forecast ortfolio investments ER 7. Balance sheet highlights 8. EBIT to EBIT Adjusted 6. Cash Flow 9. Upcoming IR activities intrum 20
Slide 21: Funding base
‒ ‒ ‒ 25 000 20 000 ‒ ‒ ‒ 15 000 ‒ MSEK 10 000 ‒ 5 000 ‒ - 2019 2020 2021 2022 2023 2024 CP Bonds SEK MTN Private Placement RCF Utilised Unutilised RCF ‒ * Funds not recieved 30 Jun 2019
Slide 22: Pro forma portfolio investments ROI
18,0% 17,5% 17,5% 266 15,7% 14,8% 14,4%
Slide 23: Collections vs Active Forecast per quarter and R12
Collections vs Active Forecast per quarter Collections vs Active Forecast R12 23
Slide 24: Portfolio investments estimated remaining collections
70 60,9 60 51,0 50 41,9 40 31,8 30 24,3 Total 20 18,6 of which Italian JV 14,4 11,2 10 8,6 6,4 4,6 3,1 1,8 0,7 0,1 0 24
Slide 25: Pro forma gross cash-on-cash multiple
5. Pro forma gross cash-on-cash multiple Vintage Purchase Price, SEK M Gross Cash-on-Cash Multiple 2009 and before 9974 2,58 2010 1906 2,68 2011 2648 2,41 2012 3785 2,32 2013 3431 2,20 2014 3 867 2,30 2015 5036 1,99 2016 4979 2,03 2017 7804 1,73 2018 11854 1,90 2019 2713 2,02 Gross Cash-on-Cash Mult
Slide 26: Cash flow - summary
6. Cash flow - summary Q2 2019 Q2 2018 FY 2018 Operating earnings (EBIT) 1475 1240 3978 Amortization and revaluation of portfolio investments 1066 1003 3854 Amortization/depreciation and impairment 311 353, 900 Net Interest -160 -105 1184 Tax -100 -85 -590 Other -695, 727 -804 Cash flow from operati
Slide 27: Balance sheet highlights
7. Balance sheet highlights Intangible fixed assets - where of goodwill Tangible fixed assets Financial fixed assets - where of portfolio investments - where of shares in joint ventures Current assets Total assets Shareholders’ equity Long-term liabilities Current liabilities Total shareholders equi
Slide 28: From EBIT to EBIT Adjusted
8. From EBIT to EBIT Adjusted FY 2018 EBIT 1475 1240 19 4663 3978 Positive Revaluations of Portfolio Investments 294 216 948 795 Negative Revaluations of Portfolio Investments. -292 -217 -854 -707 Impact from early termination of BPO 2 218 107 178 Lindorff Integration Costs -33 -109 -246 -352 Transa
Slide 29: Upcoming IR activities
9. Upcoming IR activities Q3 Roadshow Additional events 2019 * Stockholm, October 23 * Carnegie Small and Mid Cap Seminar, Stockholm September 3 + Europe, October 24-25 * — Goldman Sachs Leveraged Finance Conference, London, September 3 ¢ USA, tod, October 28-31 + JPM Conference, London, September 4
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