Slide 1: Interim report January - March 2016
Interim report January - March 2016 April 20th, 2016 Mikael Ericson, CEO Erik Forsberg, CFO
Slide 2: Intrum Justitia
intrum Ww justitia
Slide 3: Q1 2016 Highlights
Q1 2016 Highlights Solid financial development ‒ EPS growth Last Twelve Months +17% (+30% YoY for Q1-16) ‒ PD RoI at 20% (19% excluding revaluations) ‒ ND / EBITDA at 1,9x, just below our 2-3x target ratio Continued delivery on core strategies ‒ Improving market position: Good PD investment levels a
Slide 4: Financial summary
Financial summary Q1 Q1 Change FY 2016 2015 % 2015 Revenues,SEK M 1 408 1 370 3 5 628 EBIT,SEK M 428 339 26 1 624 EBIT margin, % 30 25 n/a 29 EPS growth, % 30 39 n/a 18 Cash flow from operations,SEK M 730 483 51 2 905 Investments in purchased debt,SEK M 738 469 57 2 428 Return on purchased debt, % 2
Slide 5: Northern Europe
Regional development Market leader Northern Europe Top five 46 percent of total revenues Other Q1 Highlights • Fx-adjusted revenue growth due to increased PD investments in 2015, partially offset by a marginal decline Q1 Q1 Change Fx Adj in CMS revenues Excl. PD Revaluations, Quarter 2016 2015 % % •
Slide 6: Central Europe
Regional development Market leader Central Europe Top five 30 percent of total revenues Other Q1 Highlights • Revenue growth from strong PD collection performance, in turn generating EBIT growth and margin Q1 Q1 Change Fx Adj improvement Excl. PD Revaluations, Quarter 2016 2015 % % • Positive develo
Slide 7: Western Europe
Regional development Market leader Western Europe Top five 24 percent of total revenues Other Q1 Highlights • Revenue growth from increased PD investments and CMS acquisitions • Reported EBIT in Q1 2015 included Q1 Q1 Change Fx Adj significant negative impact from Excl. PD Revaluations, Quarter 2016
Slide 8: Credit Management Services
Market leader Credit Management Services Top five 62 percent of total revenues Other Q1 Highlights • Underlying revenue growth, Q1 Q1 Change Fx Adj excluding currency impact and Reported numbers, Quarter 2016 2015 % % Revenues, SEK M 1 024 1 002 2 4 adjustment of intercompany Service line earnings,
Slide 9: Financial Services
Market leader Financial Services Top five 38 percent of total revenues Other Q1 Highlights • Revenue growth from good collection performance and increased PD investments last twelve months Q1 Q1 Change Fx Adj • Increased Service Line Earnings Reported numbers, Quarter 2016 2015 % % Revenues, SEK M 6
Slide 10: PD Carrying value & growth
PD Carrying value & growth PD carrying value: SEK 7 403 M Book Value growth: 17% SEK M PD carrying value % Growth YoY 8 000 50% 13% 17% 7 000 45% 15% 40% 6 000 33% 35% 5 000 30% 26% 4 000 25% 36% 3 000 20% 24% -1% 3% 15% 2 000 10% 1 000 5% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Y o Y c
Slide 11: Purchased Debt, investments & ROI
Purchased Debt, investments & ROI 2008–2016 PD ROI RTM excl revaluation SEK M 2 428 MSEK 2 500 25% 1 937 266 MSEK 2 000 20% 1130 477 1 500 15% FY 2475 267 Q1 320 1 000 1804 2014 574 10% Q2 509 Q3 500 872 871 1050 5% 619 738 Q4 469 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 1) 2008 – 2013 paid
Slide 12: Purchased Debt - revaluations
Purchased Debt - revaluations Q1 Q1 FY PD revaluations, SEK M 2016 2015 2015 Northern Europe -1 -33 -79 Central Europe 17 18 69 Western Europe -11 8 41 Total 5 -7 31 12
Slide 13: Balance sheet – Highlights
Balance sheet – Highlights 31 Mar 31 Mar Dev SEK M 2016 2015 % Intangible fixed assets 3 095 3 031 2 - whereof goodwill 2 804 2 763 1 Tangible fixed assets 113 123 -8 Financial fixed assets 7 462 6 392 17 - whereof purchased debt 7 403 6 338 17 Current assets 1 893 2 012 -6 Total assets 12 563 11 55
Slide 14: Cash flow statement
Cash flow statement Q1 Q1 Dev FY SEK M 2016 2015 % 2015 Operating earnings (EBIT) 428 339 26 1 624 Depreciation 40 41 -2 164 Amortization and revaluation of purchased debt 374 367 2 1 495 Income tax paid -24 -140 -83 -229 Changes in factoring receivables 13 -20 n/a -44 Other changes in working capit
Slide 15: Funding base
Funding base • Syndicated bank loan facility (up to SEK 7,5bn) ‒ Renegotiated in December 2015 Debt Maturity Schedule (SEK million) ‒ About SEK 2,5 bn utilized per Mar 2016 4000 • Corporate bonds (up to SEK 5 bn under MTN program) 3500 ‒ SEK 1 bn, 5Y note, issued in March 2012 (margin of 3,10%) 3000
Slide 16: Financial targets
Financial targets Financial targets Q1 16 Q1 16 RTM FY 2015 1. EPS growth to exceed 10% per year 30% 17% 18% 2. Return on PD investments to exceed 15% per year 20% 20% 20% 3. Net Debt/EBITDA should be between 2.0 and 3.0 1.9 1.9 1.8 16
Slide 17: Q&A
Q&A intrum mn) justitia
Slide 18: Appendix
Appendix intrum mn) justitia
Slide 19: This is Intrum Justitia
Market leader This is Intrum Justitia Top five 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 2015 2014 Revenue 5 628 5 184 Diversification of risk through broad b
Slide 20: Intrum Way
Intrum Way Objectives, Strategies & Capabilities Stakeholder Objectives Citizen Client Customer Employee Shareholder Better Increased A better life The place The share usiness Profibility to be to own for all Core strategies Ensure Establish Ensure Contribute market leading superior credit operation
Slide 21: Gross Collections vs. Active Forecast - R12
Gross Collections vs. Active Forecast - R12 14% 12% 10% 8% 6% 4% 2% 0% Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 21
Slide 22: One-offs vs. Forward Flow, as a % of PD Investments
One-offs vs. Forward Flow, as a % of PD Investments 100% 13% 90% 18% 26% 28% 30% 29% 30% 31% 31% 34% 33% 32% 80% 40% 38% 50% 48% 51% 52% 49% 51% 52% 50% 49% 49% 70% 59% 56% 61% 75% 60% 79% 50% 87% 40% 82% 74% 72% 70% 71% 70% 69% 69% 66% 67% 68% 30% 60% 62% 50% 52% 49% 48% 51% 49% 48% 50% 51% 51% 20%
Slide 23: A broad indication going forward
A broad indication going forward Carrying value 31 Mar 2016: SEK 7,403 M +17% y-o-y (SEK 6,338 M) Gross collection: Carrying value x 2.0 Cash flow distribution 31 Mar of Gross collection 2016 2015 Y1 22% 25% Y2 17% 16% Y3 13% 13% Y4 10% 10% Y5 8% 10% Y6 7% 7% Y7 6% 6% Y8 5% 5% Y9 4% 3% 23
Slide 24: Better business for all
intrum oD justitia Better business for all