Intrum Ab · OMXSTO:INTRUM
Intrum Ab — Investor Day (2023)
11 slides from Intrum Ab's investor day presentation, Sep 13, 2023
Slide 1: Agenda
Agenda Introduction Leading the way — today and tomorrow Operations Operational excellence Servicing Profitable growth through client focus Investing Value extraction and pivot to capital light e e e e Financials Servicing growth and accelerated deleveraging Closing remarks intrum Intrum today and t
Slide 2: Three years ago we promised to substantially grow Cash EBITDA
Three years ago we promised to substantially grow Cash EBITDA while keeping net debt largely flat - what have we done? Since mid 2020 we have substantially grown cash EBITDA... ... through investing more... ... expanding net debt and the leverage ratio Cash EBITDA (RTM) Book Value of Investments Net
Slide 3: Going forward our three strategic pillars show focus on Servicing, value extraction and deleveraging
Going forward our three strategic pillars show focus on Servicing, value extraction and deleveraging... 6 Servicing Client centricity and Commercial excellence and Cost program focused geographic Value chain expansion Data and tech to drive footprint efficiency Investing Active back book Strictly li
Slide 4: With the resulting financial trajectory based on the following assumptions
..With the resulting financial trajectory based on the following assumptions Profitable growth in Servicing... Servicing * External servicing revenues ° Majority of SEK >0.8 bn cost growth with ~10% CAGR program to benefit Servicing * Northern Europe: <5% * Operational efficiency and * Middle Europe
Slide 5: Profitable growth and operating leverage in Servicing through improving efficiency and effectiveness
Profitable growth and operating leverage in Servicing through improving efficiency and effectiveness — trajectory External Servicing Revenues Servicing Adj. EBIT Margin (%) Servicing Adj. EBIT intrum Q2 2020 2026 ~3% at constant FX CAGR: 4% Q2 2023 T New metric including local overhead costs CAGR: 1
Slide 6: Unlocking value of back book and franchise in Investing
Unlocking value of back book and franchise in Investing — trajectory Investing Cash Revenues Investing Cash EBITDA Capital Invested p.a. intrum @22020 Q22023 2026 @ CAGR 10% — CAGR: ~(10)% .. i ween >
Slide 7: De-risked financial profile with >SEK 16bn available to de-lever
6 De-risked financial profile with >SEK 16bn available to de-lever B ) Q2 2020 Q2 2023 2026 Servicing: 43% CAGR: 6% Cash Revenues 209) Servicing: 60% Cash EBITDA CAGR: ~0% Discretionary cash @ generated! 28} intrum Cumulative 2024-26 of SEK >16bn
Slide 8: Capital light: de-risking and deleveraging the balance sheet
Capital light: de-risking and deleveraging the balance sheet — : trajectory @22020 922028 2028 AGR: 6% a c fod ae “AGR: &.(10)9 Net debt (SEK bn) (07) a Leverage Ratio (x) @ Tote oS / 2024 2025 Investing 3s ) °o ae Book value (SEK bn) ae RR : , intrum a s
Slide 9: Potential upsides and risks to our financial trajectory
Potential upsides and risks to our financial trajectory Upsides Risks Asset management Successful implementation of asset management model Financing costs Reduced financing costs given deleveraging focus Investment in tech Upside from product suite and operating leverage Back book disposals Retentio
Slide 10: New financial targets for 2026
New financial targets for 2026 Balance Growth EBIT margin sheet intensity Leverage Dividend ~10% 25%, SEK 3.5x Subject (o} . CAGR ~30bn to <3.5x External servicing Total adjusted Proprietary Leverage ratio by Dividends subject to revenues of growth servicing margin _ Investing book value end of 2025
Slide 11: Slide 11