Intrum Ab · OMXSTO:INTRUM

Intrum Ab — Intrum Justitia — FY2012 Earnings Presentation

25 slides from Intrum Ab's earnings presentation, Feb 5, 2013

  1. Slide 1: Year-end report January-December 2012

    Year-end report January-December 2012 February 5th 2013

  2. Slide 2: Presented by Lars Wollung and Erik Forsberg

    Presented by Lars Wollung CEO and President Erik Forsberg CFO

  3. Slide 3: Quarterly highlights

    Quarterly highlights EBIT growth (adjusted for currency and debt 22% portfolio revaluations) 753 MSEK investments in purchased debt 17% Return on purchased debt 7% Organic growth 3(25) © Intrum Justitia AB 2013. All rights reserved.

  4. Slide 4: Financial summary

    Financial summary Oct–Dec Oct-Dec FY FY 2012 2011 2012 2011 Revenues, SEK M: 1052 1042 4056 3 950 EBIT, SEK M: 230 228 879 868 EBIT margin, %: 22 22 22 22 Organic growth, %: 7 4 6 2 Cash flow from operations, SEK M: 614 575 1963 1 768 Investments in purchased debt: 753 498 2 014 1 804 Net debt to eq

  5. Slide 5: Revenues and operating margin, rolling 12 months

    Revenues and operating margin, rolling 12 months Revenues: SEK 4 056 M Operating margin: 24% SEK M Revenues 25 4 000 EBIT % 3 500 EBIT margin 3 000 20 2 500 2 000 1 500 15 1 000 500 0 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 20

  6. Slide 6: Northern Europe

    Regional development Market position Market leader Northern Europe Top 5 49 percent of total revenues Q4 Highlights Oct-Dec Oct-Dec Change Fx Adj • Continued solid revenue growth, mainly Excl. PD Revaluations 2012 2011 % % driven by strong PD development Revenues, SEKm 544 478 14% 16% EBIT, SEKm 187

  7. Slide 7: Central Europe

    Regional development Market position Central Europe Market leader Top 5 24 percent of total revenues Other Oct-Dec Oct-Dec Change Fx Adj Q4 Highlights Excl. PD Revaluations 2012 2011 % % • Significant actions implemented during the Revenues, SEKm 259 252 3% 7% year to strengthen the German operation

  8. Slide 8: Western Europe

    Market position Regional development Market leader Western Europe Top 5 27 percent of total revenues Other Q4 Highlights Oct-Dec Oct-Dec Change Fx Adj • Weak macro including price pressure Excl. PD Revaluations 2012 2011 % % impacts CMS revenue and margin Revenues, SEKm 297 320 -7% -3% development E

  9. Slide 9: Credit Management Services

    Credit Management Services 72 percent of total revenues Q4 Highlights Oct-Dec Oct-Dec Change Fx Adj Reported numbers 2012 2011 % % • Good underlying year-on-year margin Revenues, SEKm 868 868 0% 3% improvement as Q4 reported figures Service line earnings, SEKm 222 221 0% 4% include one off costs in

  10. Slide 10: Financial Services

    Financial Services 28 percent of total revenues Oct-Dec Oct-Dec Change Fx Adj Q4 Highlights Reported numbers 2012 2011 % % Revenues, SEKm 339 298 14% 16% Service line earnings, SEKm 159 159 0% 1% • Very good margin and RoI development, Service line margin % 47% 53% -6 ppt adjusted for the German rev

  11. Slide 11: Purchased debt – revaluations

    Purchased debt – revaluations Q4 Q4 FY FY PD revaluations, SEK m 2012 2011 2012 2011 Northern Europe 0 1 6 18 Central Europe -44 -1 -44 7 Western Europe -4 -7 -45 -6 Total -48 -7 -83 19 Excluding the revaluation of a Spanish portfolio following the ruling of a court case and the German portfolio wri

  12. Slide 12: PD ROI – rolling 12 months

    PD carrying value: SEK 4 071 M PD ROI – rolling 12 months ROI RTM: 17% ROI RTM:* 19% *Excluding revaluations SEK M PD carrying value ROI RTM ROI RTM excl. reval 3 600 3 200 20% 2 800 2 400 15% 2 000 1 600 10% 1 200 800 5% 400 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009

  13. Slide 13: Purchased debt, investments

    Purchased debt, investments 2002–2012 SEK M 1 804 2 014 2 500 CAGR 07-11: 13% 2 000 1 500 498 753 Q1 Q2 CAGR 02-06: 28% Q3 1 000 299 Q4 660 500 996 1050 276 667 822 870 872 871 258 201 267 370 295 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 13(25) © Intrum Justitia AB 2013. All rights r

  14. Slide 14: Balance sheet – Highlights

    Balance sheet – Highlights 31 Dec 31 Dec Dev SEK m 2012 2011 % Total assets 8 475 7 907 7 Goodwill 2 369 2 204 7 Total financial fixed assets 4 167 3 344 25 - whereof purchased debt 4 071 3 229 26 Shareholders' equity 3 019 2 811 7 Net debt/ R12 EBITDA* 1.44 1.40 3 Net debt/equity ratio, % 107 96 11

  15. Slide 15: Cash flow statement

    Cash flow statement Oct-Dec Oct-Dec Dev FY FY Dev SEK m 2012 2011 % 2012 2011 % Operating earnings (EBIT) 230 228 1 879 868 1 Depreciation 61 45 36 187 173 8 Amortization and revaluation of purchased debt 343 255 35 1 173 888 32 Income tax paid -21 -23 17 -145 -177 -15 Changes in working capital 40

  16. Slide 16: Q&A

    Q&A 16(25) © Intrum Justitia AB 2013. All rights reserved.

  17. Slide 17: Appendix

    Appendix 17(25) © Intrum Justitia AB 2013. All rights reserved.

  18. Slide 18: Intrum Justitia in brief

    Intrum Justitia in brief Europe’s leading provider of credit management services, with operations in 20 countries Revenue 2012 FY: SEK 4.1 billion Avrg nr of employees in Q4 2012: 3 391 Listed on NASDAQ OMX, Stockholm, Mid-Cap Market capitalization, Dec 31, 2012: SEK 7.8 billion Intrum Justitia's ma

  19. Slide 19: Purchased debt – an illustrative financial example

    Purchased debt - An illustrative financial example 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 -10

  20. Slide 20: Purchased debt, carrying value

    Purchased debt, carrying value SEK M 4 000 3 750 3 500 3 250 3 000 2 750 2 500 2 250 2 000 1 750 1 500 1 250 1 000 750 500 250 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20(25) © Intrum Justitia AB 2013. All rights reserved.

  21. Slide 21: Organic growth revenue 2005-2012

    Organic growth revenue 2005-2012 Organic growth % in Q4(12): 7% 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -5 2005 2006 2007 2008 2009 2010 2011 2012 21(25) © Intrum Justitia AB 2013. All rights reserved.

  22. Slide 22: EBIT Margin Y-o-Y

    EBIT* Margin Y-o-Y Ppt 6 5 4 3 2 1 0 -1 -2 -3 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 2008 2009 2010 2011 2012 Excl. UK downsizing in 2009, goodwill write-down in 2008, non-recurring 22(25) item in Spain in Q1 2012, and one-of

  23. Slide 23: One-offs vs Forward Flow, as a % of PD Investments

    One-offs vs Forward Flow, as a % of PD Investments 100% 90% 31% 26% 31% 34% 80% 40% 38% 50% 48% 51% 52% 49% 70% 61% 59% 56% 60% 75% 79% 50% 40% 69% 74% 69% 66% 30% 60% 62% 50% 52% 49% 48% 51% 20% 39% 41% 44% 10% Forward flows One-offs 25% 21% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2

  24. Slide 24: Revaluation picture (SEK)

    Revaluation picture (SEK) SEK 20,000 10,000 0 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 -10,000 -20,000 -30,000 -40,000 -50,000 24(25) © Intrum Justitia AB 2013. All rights reserved.

  25. Slide 25: A broad indication going forward

    A broad indication going forward Carrying value 31 Dec 2012: SEK 4,071 M +23% y-o-y (SEK 3,323 M) Gross collection: Carrying value x 2-2.5 Cash flow distribution 31 Dec of Gross collection 2012 2011 Y1 25% 25% Y2 18% 18% Y3 14% 13% Y4 11% 10% Y5 8% 8% Y6 7% 6% Y7 5% 5% Y8 4% 4% Y9 3% 3% 25(25) © Int

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