Slide 1: Interim report April - June 2016
Interim report April - June 2016 July 19th, 2016 Mikael Ericson, CEO Erik Forsberg, CFO
Slide 2: Intrum Justitia
intrum Ww justitia
Slide 3: Q2 2016 Highlights
Q2 2016 Highlights Solid financial development ‒ Underlying EBIT +15% YoY (excluding fx-impact and revaluations) ‒ Stable development across the group: all regions and both service line improve results ‒ All financial targets met: EPS growth, PD RoI and ND/EBITDAA Continued delivery on core strategi
Slide 4: Financial summary
Financial summary Q2 Q2 Change YTD YTD Change 2016 2015 % 2016 2015 % Revenues,SEK M 1 475 1 476 0 2 883 2 846 1 EBIT,SEK M 474 448 6 902 787 15 EBIT margin, % 32 30 n/a 31 28 n/a EPS growth, % 11 36 n/a 18 37 n/a Cash flow from operations,SEK M 695 739 -6 1 425 1 222 17 Investments in purchased deb
Slide 5: Northern Europe
Regional development Market leader Northern Europe Top five 48 percent of total revenues Other Q2 Highlights Q2 Q2 Change Fx Adj • Fx-adjusted revenues in line with Excl. PD Revaluations, Quarter 2016 2015 % % Revenues, SEK M 693 705 -2 0 last year. Positive impact from EBIT, SEK M 231 216 7 8 incre
Slide 6: Central Europe
Regional development Market leader Central Europe Top five 28 percent of total revenues Other Q2 Highlights Q2 Q2 Change Fx Adj Excl. PD Revaluations, Quarter 2016 2015 % % • FX-adjusted revenue growth due to Revenues, SEK M 411 414 -1 2 positive development for CMS EBIT, SEK M 144 121 19 22 EBIT ma
Slide 7: Western Europe
Regional development Market leader Western Europe Top five 24 percent of total revenues Other Q2 Highlights Q2 Q2 Change Fx Adj Excl. PD Revaluations, Quarter 2016 2015 % % • Strong fx-adjusted revenue growth Revenues, SEK M 354 312 13 14 from increased PD investments in EBIT, SEK M 82 66 24 25 EBIT
Slide 8: Credit Management Services
Market leader Credit Management Services Top five 60 percent of total revenues Other Q2 Highlights Q2 Q2 Change Fx Adj Reported numbers, Quarter 2016 2015 % % • Underlying revenue growth of 1%, Revenues, SEK M 1 052 1 024 3 4 due to growth from servicing of own Service line earnings, SEK M 282 255 1
Slide 9: Financial Services
Market leader Financial Services Top five 40 percent of total revenues Other Q2 Q2 Change Fx Adj Q2 Highlights Reported numbers, Quarter 2016 2015 % % Revenues, SEK M 695 672 3 5 • Excluding revaluations and FX Service line earnings, SEK M 385 381 1 3 impact, growth in revenue and Service line earni
Slide 10: PD Carrying value & growth
PD Carrying value & growth PD carrying value: SEK 7 649 M Book Value growth: 19% SEK M PD carrying value % Growth YoY 8 000 19% 50% 13% 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 Q2 Y o Y c
Slide 11: Purchased Debt, investments & ROI
Purchased Debt, investments & ROI 2008–2016 Q2 16 RTM Investments: SEK 2,7bn (Q2 15: SEK 1,7bn) 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 574 550 10% Q2 509 Q3 500 872 871 1050 5% 619 738 Q4 469 0 0% 2008 2009 2010 2011 2012 2013 2014 2
Slide 12: Purchased Debt - revaluations
Purchased Debt - revaluations Q2 YTD Q2 YTD PD revaluations, SEK M 2016 2016 2015 2015 Northern Europe 12 11 12 -21 Central Europe 17 34 19 37 Western Europe -12 -23 14 22 Total 17 22 45 38 12
Slide 13: Balance sheet – Highlights
Balance sheet – Highlights 30 Jun 30 Jun Dev SEK M 2016 2015 % Intangible fixed assets 3 159 3 016 5 - whereof goodwill 2 860 2 753 4 Tangible fixed assets 110 121 -9 Financial fixed assets 7 712 6 490 19 - whereof purchased debt 7 649 6 435 19 Current assets 2 272 2 107 8 Total assets 13 253 11 734
Slide 14: Cash flow statement
Cash flow statement Q2 Q2 Dev YTD YTD Dev SEK M 2016 2015 % 2016 2015 % Operating earnings (EBIT) 474 448 6 902 787 15 Depreciation 41 40 2 81 81 0 Amortization and revaluation of purchased debt 389 345 13 763 712 7 Income tax paid -140 -21 n/a -164 -161 2 Changes in factoring receivables -33 -25 32
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 1,9 bn utilized per 30 June 2016 4000 3500 • Corporate bonds (up to SEK 5 bn under MTN program) 3000 ‒ SEK 1 bn, 5Y note, issued in March 2012 (margin of 3,
Slide 16: Financial targets
Financial targets Financial targets Q2 16 Q2 16 RTM FY 2015 1. EPS growth to exceed 10% per year 11% 11% 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 2.0 2.0 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 Business Profibility to be to own for all Core strategies Ensure Establish Ensure Contribute market leading superior credit operatio
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 Q216 21
Slide 22: One-offs vs Forward Flow, as a % of PD Investments
One-offs vs Forward Flow, as a % of PD Investments 22
Slide 23: A broad indication going forward
A broad indication going forward Carrying value 30 Jun 2016: SEK 7,649 M +19% y-o-y (SEK 6,435 M) Gross collection: Carrying value x 2.0 Cash flow distribution 30 Jun of Gross collection 2016 2015 Y1 21% 23% Y2 17% 17% Y3 13% 13% Y4 11% 11% Y5 9% 8% 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