Slide 1: Year-end report October - December 2014
Year-end report October - December 2014 January 29th 2015 Lars Wollung, CEO Erik Forsberg, CFO
Slide 2: Quarterly highlights
Quarterly highlights 31% RTM EPS growth EBIT growth (adjusted for currency, debt portfolio 13% revaluations and items affecting comparability) 18% Growth in operating cash flow Return on purchased debt (adjusted for items 21% affecting comparability) 454 MSEK investments in purchased debt 15% Growth
Slide 3: Financial summary
Financial summary Oct-Dec Oct-Dec Change Jan-Dec Jan-Dec Change 2014 2013 % 2014 2013 % Revenues, MSEK 1 370 1 231 11 5 184 4 566 14 EBIT excluding items affecting comparability, MSEK * 395 340 16 1 465 1 207 21 EBIT margin excluding items affecting comparability, % * 29 28 n/a 28 26 n/a EPS growth,
Slide 4: Revenues and EBIT margin, rolling 12 months
Revenues and EBIT margin, rolling 12 months Revenues: SEK 5 184 M EBIT margin: 28% SEK M 5 000 Revenues % 4 500 EBIT 4 000 EBIT-margin (RHS) 25 3 500 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 Q1 Q2 Q3
Slide 5: Northern Europe
Regional development Market position Northern Europe Market leader Top 5 50 percent of total revenues Q4 Highlights • Revenues adjusted for revaluations and currency impact up 2% year-on- Oct-Dec Oct-Dec Change Fx Adj year, mainly due to growth for CMS. Excl. PD Revaluations, Quarter 2014 2013 % % •
Slide 6: Central Europe
Regional development Market position Central Europe Market leader Top 5 28 percent of total revenues Other Q4 Highlights • Solid EBIT margins and strong year- on-year improvement in line with Oct-Dec Oct-Dec Change Fx Adj previous quarters, driven by Excl. PD Revaluations, Quarter 2014 2013 % % incr
Slide 7: Western Europe
Regional development Market position Western Europe Market leader Top 5 22 percent of total revenues Other Q4 Highlights • Good year-on-year revenue and EBIT growth at 9%, adjusted for currency impact. Oct-Dec Oct-Dec Change Fx Adj Excl. PD Revaluations, Quarter 2014 2013 % % • Q4 EBIT growth mainly
Slide 8: Credit Management Services
Credit Management Services 64 percent of total revenues Q4 Highlights • Revenue growth excluding currency impact at +6%, mainly from increased Oct-Dec Oct-Dec Change Fx Adj revenues from servicing of own PD Reported numbers, Quarter 2014 2013 % % portfolios and acquired units. Revenues, SEKm 1019 92
Slide 9: Financial Services
Financial Services 36 percent of total revenues Q4 Highlights Oct-Dec Oct-Dec Change Fx Adj • Revenue growth due to increased PD Reported numbers, Quarter 2014 2013 % % investments in past years, generating Revenues, SEKm 570 495 15% 11% Service line earnings, SEKm 275 273 1% -2% a PD Book Value gro
Slide 10: PD ROI – rolling 12 months
PD ROI – rolling 12 months PD carrying value: SEK 6 197 M ROI RTM, excl. reval: 19% SEK M PD carrying value ROI RTM ROI RTM excl. reval 6 000 20% 5 000 4 000 15% 3 000 10% 2 000 5% 1 000 0 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 2008 2009 2010 2011 2012
Slide 11: Purchased debt, investments
Purchased debt, investments 2002–2014 SEK M 2 475 2 500 2 014 266 1266 950 2 000 692 FY 753 454 1 500 Q1 271 Q2 597 Q3 299 1 000 1804 537 Q4 667 500 822 870 996 872 871 1050 920 688 258 201 267 295 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11(26) © Intrum Justitia AB 2014. A
Slide 12: Purchased debt - revaluations
Purchased debt - revaluations Q4 YTD Q4 YTD PD revaluations, SEK m 2014 2014 2013 2013 Northern Europe -2 17 4 -5 Central Europe 9 15 -3 1 Western Europe 0 3 6 11 Total 7 35 7 7 12(26) © Intrum Justitia AB 2014. All rights reserved.
Slide 13: Balance sheet – Highlights
Balance sheet – Highlights 31 Dec 31 Dec Dev SEK m 2014 2013 % Total assets 11 341 10 222 11 Goodwill 2 719 2 542 7 Total financial fixed assets 6 249 5 486 14 - whereof purchased debt 6 197 5 411 15 Shareholders' equity 3 041 3 316 -8 Net debt/ R12 EBITDA* 1.88 1.61 * EBITDA = operating result befo
Slide 14: Cash flow statement
Cash flow statement Oct-Dec Oct-Dec Dev Jan-Dec Jan-Dec Dev SEK m 2014 2013 % 2014 2013 % Operating earnings (EBIT) 360 340 6 1 430 1 207 18 Depreciation 52 40 30 170 157 8 Amortization and revaluation of purchased debt 359 341 5 1 395 1 320 6 Income tax paid -27 -26 4 -138 -111 24 Changes in factor
Slide 15: Funding base
Funding base • Syndicated bank loan facility (up to SEK 5bn) Debt Maturity Schedule ‒ About SEK 1,7 bn utilized per Dec 2014 (SEK million) ‒ Loan facility allows a total financing of up to SEK 10 bn 3500 • Corporate bonds (up to SEK 5 bn under MTN program) 3000 ‒ SEK 1 bn, 5Y note, issued in March 2
Slide 16: Financial targets
Financial targets Financial targets Q4 14 FY 2014 FY 2013 1. EPS growth to exceed 10% per year 28% 31% 41% 2. Return on PD investments to exceed 15% per year 18% 20% 21% 3. Net Debt/EBITDA should be between 2.0 and 3.0 1.88 1.88 1.61 16(26) © Intrum Justitia AB 2014. All rights reserved.
Slide 17: Items Affecting Comparability included in Q4 results
Items Affecting Comparability included in Q4 results Regions Service lines SEK M NEU CEU WEU Group CMS PD Unalloc. Group EBIT Reported (including revaluations) 167 128 65 360 246 275 -161 360 Items Affecting Comparability -35 -35 -24 -38 26 -35 of which, VAT dispute -56 -56 -38 -18 -56 of which, Buc
Slide 18: Q&A
Q&A 18(26) © Intrum Justitia AB 2014. All rights reserved.
Slide 19: Appendix
Appendix 19(26) © Intrum Justitia AB 2014. All rights reserved.
Slide 20: Intrum Justitia in brief
Intrum Justitia in brief Europe’s leading provider of credit management services, with operations in 20 countries Revenue 2014: SEK 5.2 billion Avg nr of employees in Q4 2014: 3 806 Listed on NASDAQ OMX, Stockholm, Large-Cap Market capitalization, Dec 31, 2014: SEK 17.1 billion Intrum Justitia's mar
Slide 21: Indicative Financial illustration
Indicative Financial illustration 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 -100 Amortisation ra
Slide 22: Purchased debt, carrying value
Purchased debt, carrying value SEK M 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 22(26) © Intrum Justitia AB 2014. All rights reserved.
Slide 23: 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 -2% -4% 23(26) © Intrum Justitia AB 2014. All rights reserved.
Slide 24: One-offs vs Forward Flow, as a % of PD Investments
One-offs vs Forward Flow, as a % of PD Investments 100% 90% 31% 26% 28% 30% 29% 30% 31% 34% 33% 80% 40% 38% 50% 48% 51% 52% 49% 51% 52% 50% 70% 61% 59% 56% 60% 75% 79% 50% 40% 69% 74% 72% 70% 71% 70% 69% 66% 67% 30% 60% 62% 50% 52% 49% 48% 51% 49% 48% 50% 20% 39% 41% 44% 10% 25% 21% Forward flows On
Slide 25: A broad indication going forward
A broad indication going forward Carrying value 31 Dec 2014: SEK 6,197 M +15% y-o-y (SEK 5,411 M) Gross collection: Carrying value x 2.1 Cash flow distribution 31 Dec of Gross collection 2014 2013 Y1 22% 23% Y2 17% 17% Y3 14% 13% Y4 11% 11% Y5 9% 9% Y6 7% 7% Y7 6% 6% Y8 5% 4% Y9 4% 4% 25(26) © Intru
Slide 26: Intrum Justitia - Better business for all
intrum (~))) justitia Better business for all