Slide 1: Interim report January - March 2015
Interim report January - March 2015 April 22th 2015 Lars Wollung, CEO Erik Forsberg, CFO
Slide 2: Q1 Key highlights
Q1 Key highlights • Strong financial performance ‒ EBIT excluding revaluations and fx-impact +12% • Investment grade rating from Standard & Poor’s • Improving market position ‒ Acquired units in Czech Republic, Denmark and France performing well • Development of new services ‒ E-com offering launche
Slide 3: Q1 Key financials
Q1 Key financials 12% EBIT growth (adjusted for currency and debt portfolio revaluations) 34% RTM EPS growth -9% Growth in operating cash flow 19% Return on purchased debt 469 MSEK investments in purchased debt 12% Growth in purchased debt book value 3(25) © Intrum Justitia AB 2014. All rights reser
Slide 4: Financial summary
Financial summary Q1 Q1 Change FY 2015 2014 % 2014 Revenues, MSEK 1 370 1 204 14 5 184 EBIT, MSEK 339 283 20 1 465 * EBIT margin, % 25 24 n/a 28 EPS growth, % 39 21 n/a 31 Cash flow from operations, MSEK 483 530 -9 2 672 Investments in purchased debt, MSEK 469 619 -24 1 937 Return on purchased debt,
Slide 5: Northern Europe
Regional development Market leader Northern Europe Top five 47 percent of total revenues Other Q1 Highlights • Revenue growth excluding revaluations and fx-impact up 6% year-on-year, mainly from the acquisition of Advis A/S Q1 Q1 Change Fx Adj and organic growth from CMS Excl. PD Revaluations, Quart
Slide 6: Central Europe
Regional development Market leader Central Europe Top five 30 percent of total revenues Other Q1 Highlights • Continued good revenue and EBIT growth, with improvements from both PD and CMS Q1 Q1 Change Fx Adj Excl. PD Revaluations, Quarter 2015 2014 % % • Solid development from last year’s Revenues,
Slide 7: Western Europe
Regional development Market leader Western Europe Top five 23 percent of total revenues Other Q1 Highlights • Significant negative EBIT-impact from one-off costs associated with change of Regional Managing Director Q1 Q1 Change Fx Adj Excl. PD Revaluations, Quarter 2015 2014 % % • Improved earnings
Slide 8: Credit Management Services
Market leader Credit Management Services Top five Other 64 percent of total revenues Q1 Highlights • Revenue growth excluding currency impact at +4%, mainly from the acquisition of Advis Q1 Q1 Change Fx Adj Reported numbers, Quarter 2015 2014 % % • Marginally positive organic growth Revenues, SEKm 1
Slide 9: Financial Services
Market leader Financial Services Top five Other 36 percent of total revenues Q1 Highlights • PD Book Value growth of 12% (6% fx- adjusted) driving increased Service Q1 Q1 Change Fx Adj Line Earnings growth. Reported numbers, Quarter 2015 2014 % % • Strong RoI at 19%, in line with the Revenues, SEKm
Slide 10: PD Book value & growth
PD Book value & growth PD carrying value: SEK 6 338 M Book Value growth: 12% SEK M PD carrying value % Growth YoY 50% 6 000 12% 45% 15% 40% 5 000 33% 35% 4 000 30% 26% 25% 3 000 36% 20% 2 000 24% -1% 3% 15% 10% 1 000 5% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 Q1 Y o Y comparison 10(25) © Intrum
Slide 11: Purchased debt, investments & ROI
Purchased debt, investments & ROI 2008–2014 PD ROI RTM excl revaluation SEK M 2 500 1 937 25% 266 KSEK 2 000 20% 477 1 500 15% FY 2475 267 Q1 1 000 1804 2014 574 10% Q2 Q3 500 872 871 1050 5% 619 Q4 469 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 1) 2008 – 2013 paid investments 2) 2014 – 2015 booke
Slide 12: Purchased debt - revaluations
Purchased debt - revaluations Q1 Q1 PD revaluations, SEK m 2015 2014 Northern Europe -33 -12 Central Europe 18 2 Western Europe 8 0 Total -7 -10 12(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 13: Balance sheet – Highlights
Balance sheet – Highlights 31 Mar 31 Mar Dev SEK m 2015 2014 % Intangible fixed assets 3 031 2 796 8 - whereof goodwill 2 763 2 542 9 Tangible fixed assets 123 110 12 Financial fixed assets 6 392 5 736 11 - whereof purchased debt 6 338 5 656 12 Current assets 2 012 1 830 10 Total assets 11 558 10 47
Slide 14: Cash flow statement
Cash flow statement Q1 Q1 Dev FY SEK m 2015 2014 % 2014 Operating earnings (EBIT) 339 283 20 1 430 Depreciation 41 38 8 170 Amortization and revaluation of purchased debt 367 360 2 1 395 Income tax paid -140 -45 211 -138 Changes in factoring receivables -20 -1 n/a -38 Other changes in working capita
Slide 15: Funding base
Funding base • Syndicated bank loan facility (up to SEK 5bn) Debt Maturity Schedule ‒ About SEK 1,9 bn utilized per Mar 2015 (SEK million) ‒ Loan facility allows a total financing of up to SEK 10 bn 3500 • Corporate bonds (up to SEK 5 bn under MTN program) 3000 ‒ SEK 1 bn, 5Y note, issued in March 2
Slide 16: Financial targets
Financial targets Financial targets Q1 15 Q1 15 RTM FY 2014 1. EPS growth to exceed 10% per year 39% 34% 31% 2. Return on PD investments to exceed 15% per year 19% 20% 20% 3. Net Debt/EBITDA should be between 2.0 and 3.0 1.89 1.89 1.88 16(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 17: Q&A
Q&A 17(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 18: Appendix
Appendix 18(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 19: This is Intrum Justitia
Market leader Top five This is Intrum Justitia Other European market leader in an attractive growth market Proven hybrid business model serving the full credit management value chain Delivering consistent, strong financial returns 2014 2013 Revenue 5 184 4 566 Diversification of risk through broad b
Slide 20: Revenues and EBIT margin, rolling 12 months
Revenues and EBIT margin, rolling 12 months Revenues: SEK 5 350 M EBIT margin: 28% SEK M 5 500 Revenues 30 5 000 EBIT 4 500 EBIT-margin (RHS) 25 4 000 20 3 500 3 000 % 15 2 500 2 000 10 1 500 1 000 5 500 0 0 2008 2009 2010 2011 2012 2013 2014 2015 Q1 20(25) © Intrum Justitia AB 2014. All rights rese
Slide 21: Gross Collections vs. Active Forecast - R12
Gross Collections vs. Active Forecast - R12 10% 8% 6% 4% 2% 0% Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 21(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 22: Indicative Financial illustration
Indicative Financial illustration Invested amount: 100 SEK M Gross collection 2.05 x invested amount (SEK M) Y1 Y2 Y3 Y4 Y5 Y6-Y10 Y11-Y15 Y1-Y15 Cash-flow distribution 29% 18% 12% 9% 8% 20% 4% 100% Gross collection 60 38 25 19 15 40 8 205 Amortisation * -31 -17 -11 -9 -7 -20 -5 -100 Amortisation ra
Slide 23: One-offs vs Forward Flow, as a % of PD Investments
One-offs vs Forward Flow, as a % of PD Investments 23(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 24: A broad indication going forward
A broad indication going forward Carrying value 31 Mar 2015: SEK 6,338 M +12% y-o-y (SEK 5,656 M) Gross collection: Carrying value x 2.05 Cash flow distribution 31 Mar of Gross collection 2015 2014 Y1 25% 23% Y2 16% 17% Y3 13% 13% Y4 10% 11% Y5 10% 9% Y6 7% 7% Y7 6% 6% Y8 5% 5% Y9 3% 4% 24(25) © Int
Slide 25: Intrum Justitia - Better business for all
intrum (~))) justitia Better business for all