Slide 1: Interim Report July — September 2019
Interim Report July — September 2019 October 23 2019 Mikael Ericson, President and CEO Anders Engdahl, CFO intrum
Slide 2: Q3 Highlights
Q3 Highlights Continued steady progress ¢ EBIT adjusted up 35%; partnership in Italy, Solvia and underlying business contributing to growth * Solid performance from Portfolio Investments * Underlying CMS performance demonstrating incremental growth and margin expansion, while southern European seaso
Slide 3: Market Outlook
Market Outlook Active markets across Europe and seasonally active Q4 anticipated * Clients affected by changing regulatory landscape, suggesting significant business opportunity in coming years * Q4 activity is typically the seasonal high Overall positive outlook whilst mindful of potential downside
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Slide 5: Group Financials in Summary
Group Financials in Summary Q3 2019 Q3 2018 Change % FY 2018 Revenues 3786 3180 19 14 839 13 442 EBIT 1375 838 64 5 200 3978 Adjustments (Adj) -101 -257 -423 -522 EBIT Adj 1476 1095 35 5623 4500 Net profit for the period 579 396 46 2679 1943 Earnings per share 4,26 3,02 4 19,66 14,18 CMS Revenue Gro
Slide 6: CMS Adj. Service Line Earnings (SLE) & margin
CMS Adj. Service Line Earnings (SLE) & margin • 140 40% Adj. SLE earnings (Q3-17=100) 120 35% 30% • 100 Adj. SLE margin 25% 80 20% 60 15% • 40 10% 20 5% 0 0% • Q3-17 Q3-18 Q3-19 "Other 23" SLE Spain SLE "Other 23" SLE margin (RHS) Spain SLE margin (RHS)
Slide 7: Portfolio Investments
Portfolio Investments SEK M Change FX Adjust All figures adjusted % % Revenues 1687 1557 8 6 Service Line Earnings 1236 837 48 45 Service Line Earnings Margin, % 73 54 +20 ppt Investments 831 927 -10 ROI% 15 13 +2 ppt Portfolio Investments Book Value 33196 25772 29 Q3 Highlights * Solid quarter with
Slide 8: Northern Europe
Northern Europe SEKM Change All figures adjusted Revenues 1075 983 9 EBIT 426 352 21 EBIT Margin % 40 36 +4 ppt Portfolio Investment Book Value 8 370 7176 7 Q3 Highlights * Solid quarter across the region with positive development in both service lines * Organic CMS revenue growth supported by front
Slide 9: Central & Eastern Europe
• • • New regional division is applied from Q3 2018. Central & Eastern Europe (CEE): Austria, Czech Republic, Germany, Greece, Hungary, Poland, Romania,Slovakia and Switzerland 9
Slide 10: Western and Southern Europe
Western and Southern Europe SEKM Change FX Adjust All figures adjusted % % Revenues 863 632 37 35 3357 EBIT 479 143, 235 227 | 1699 EBIT Margin % 56 23 +33 ppt | 51 Portfolio Investment Book Value 12152 6945 75 | 12152 Q3 Highlights * Strong year-over-year growth in portfolio book value and service
Slide 11: Iberian Peninsula & Latin America
Iberian Peninsula & Latin America SEKM Change FX Adjust Allfigures adjusted % % RTM FY 2018 Revenues 843 629 34 32 3.007 2 826 EBIT 146 204 -28 -30 | 759 969 EBIT Margin % 7 32 -15 ppt | 25 34 Portfolio Investment Book Value 4598 3 864 19 | 4598 6 462 Q3 Highlights * Service line earnings continue t
Slide 12: Italy improving CMS - Group impact in Q3 2019
Italy improving CMS - Group impact in Q3 2019 otal performance in line with pla CMS Platform Portfolio SBM Consolidated Impact All figures adjusted Revenue 279 = 279 Service Line Earnings 80 317 396 Common Costs = = -40 EBIT —_ —_ 356 (CMS Margin / PI ROI 28% 22% —_ Solid performance in seasonally s
Slide 13: Common Costs
Common Costs SEKM Change FX Adjust Allfigures adjusted % % RTM FY 2018 Common Costs -411 -339 21 19 A719 -1505 Q3 Highlights + Impacts of M&A (Intesa JV and Solvia) main explanation for increase versus last year + Underlying cost level is lower compared to Q2, partly due to seasonality but also some
Slide 14: Near-term Priorities
Slide 15: A Two-Year Recap
A Two-Year Recap An eventful journey so far Successfully combined two organisations with ~4,000 FTEs each, while maintaining growth focus, taking the group to ~10,000 dedicated professionals incl. Piraeus We have strengthened our organisational setup and now operate with one global operation in Port
Slide 16: Short- and medium-term Focus in 2019
Short- and medium-term Focus in 2019 Ensure Piraeus becomes fully operational Realise €60m in efficiency improvements Execute on disciplined capital deployment opportunities in a seasonally active Q4 Continued integration of Solvia to realize cost savings whilst addressing current operational headwi
Slide 17: Q&A
intrum Q&A
Slide 18: Appendix
intrum
Slide 19: Table of Contents
Table of Contents 1. Funding base 2. Pro forma portfolio investments and ROI 3. Portfolio investments collections vs active forecast ortfolio investments ER 5. Portfolio investments gross cas! ash multiple 6. Cash flow 7. Balance sheet highlights 8. EBIT to EBIT adjusted 9. Upcoming IR activities in
Slide 20: Funding base
16 000 14 000 12 000 10 000 MSEK 8 000 6 000 4 000 Senior bonds Issued 2 000 - 2019 2020 2021 2022 2023 2024 2025 2026 2027 CP Bonds SEK MTN Private Placement RCF Utilised Unutilised RCF Co- investors- for large portfolios of receivables • 20
Slide 21: Pro forma portfolio investments and ROI
18,0% 17,5% 17,5% 266 15,7% 15,1% 14,4%
Slide 22: Collections vs Active Forecast
Collections vs Active Forecast per quarter Collections vs Active Forecast R12 22
Slide 23: Estimated remaining collections
70 61,3 60 51,1 50 41,1 40 31,3 30 24,0 20 18,6 14,4 11,2 10 8,7 6,5 4,6 3,1 1,8 0,8 0,1 0 Total of which Italian JV 23
Slide 24: Pro Forma Gross Cash-on-Cash Multiple
5. Pro Forma Gross Cash-on-Cash Multiple Vintage Purchase Price, SEK M Gross Cash-on-Cash Multiple 2009 and before 9974 2,59 2010 1906 271 2011 2648 2,44 2012 3785 2,34 2013 3431 2,21 2014 3 867 2,31 2015 5036 1,99 2016 4979 2,04 2017 7804 1,72 2018 11854 1,87 2019 3544 2,07 Gross Cash-on-Cash Multi
Slide 25: Cash Flow - Summary
6. Cash Flow - Summary Q3 2019 Q3 2018 FY 2018 Operating earnings (EBIT) 1375 838 3978 Amortization and revaluation of portfolio investments 1052 998 3854 Amortization/depreciation and impairment 300 154 900 Net Interest -587 -449 1184 Tax -267 “112 -590 Other -567 -215 -804 Cash flow from operating
Slide 26: Balance Sheet Highlights
7. Balance Sheet Highlights Intangible fixed assets - where of goodwill Tangible fixed assets Financial fixed assets - where of portfolio investments - where of shares in joint ventures Current assets Total assets Shareholders’ equity Long-term liabilities Current liabilities Total shareholders equi
Slide 27: From EBIT to EBIT Adjusted
8. From EBIT to EBIT Adjusted EBIT 1375 838 64 Positive Revaluations of Portfolio Investments 131 126 Negative Revaluations of Portfolio Investments. -122 -126 Impact from early termination of BPO (0) 10) Lindorff Integration Costs -22 -105 Transaction Costs -27 -83 Other Items Affecting Comparabili
Slide 28: Upcoming IR Activities
9. Upcoming IR Activities Q3 Roadshow * Stockholm, October 23 + Europe, October 24-25 + USA, November 5-7 Financial Calendar + Full-year report 2019, January 29, 2020 * Ql report, April 22,2020 Q2 report, July 17, 2020 Q3 report, October 21, 2020 intrum 28
Slide 29: Disclaimer
Disclaimer The material in this presentation has been prepared by Intrum AB (publ (“Intrum’). This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendat
Slide 30: Leading the way to a sound economy.
Leading the way to a sound economy. intrum