Slide 1: Interim Report January — March 2019
Interim Report January — March 2019 26" of April 2019 Mikael Ericson, President and CEO Danko Maras, CFO intrum
Slide 2: Market Outlook — High activity levels and attractive opportunities
Market Outlook — High activity levels and attractive opportunities Continued regulatory pressure * Financial institutions under pressure to clean up balance sheets * Licensing of market participants Very healthy pipeline for NPL portfolios * Across all segments — unsecured, secured, SME * Signs of i
Slide 3: 2019 — highlights from Q1
2019 — highlights from Q1 Significant step up despite challenges EBIT Adj is up 39% year on year ¢ Partnership in Italy delivers a significant step up for the business Strong performance from Portfolio Investments * ROl of 16%, continued high levels of supply and stable to increasing IRRs CMS perfor
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Slide 5: Group financials - summary
Group financials - summary Q1 2019 Q1 2018 Change % FY 2018 Revenues 3752 3115 20 14079 13 442 EBIT 1347 897 50 4428 3.978 Adjustments (Adj) <3 -76 -449 -522 EBIT Adj 1350 973 39 4877 4500 Net profit for the period 739 364 103 2318 1943 Earnings per share 5,63 2,77 17,04 14,18 CMS Revenue Growth Adj
Slide 6: Cash flow - summary
Cash flow - summary Q1 2019 Q1 2018 FY 2018 Operating earnings (EBIT) 1347 897 3978 Amortization and revaluation of portfolio investments 980 874 3854 Amortization/depreciation and impairment 288 177 900 Net Interest 526 -503 1184 Tax 13 124 -590 Joint Venture -395 7 -351 Other -229 110 -453, Cash f
Slide 7: Iberian Peninsula & Latin America
Iberian Peninsula & Latin America SEKM Change FX Adjust All figures adjusted ho % FY 2018 Revenues 704 727 3 7 EBIT 185 248 -25 -30 | EBIT Margin % 26 34 -8 ppt | Portfolio Investment Book Value 4583, 3798 21 | Q1 Highlights mostly referring to Spain * — Significant top-line and service line earning
Slide 8: Spain — Continued topline decline impact group CMS results
Spain — Continued topline decline impact group CMS results CMS margin 4 50% NN \ AY Spain CMS revenue & margin CMS Revenue -- intrum 2018 2019 CMS Margin -== Incl compensation SEK 570m CMS margin 30-35% Future improvements driven by: - Ongoing cost efficiency efforts — fit for purpose - Solvia acqui
Slide 9: Western and Southern Europe
Western and Southern Europe FY 2018 SEKM Change FX Adjust All figures adjusted % x Revenues 866 604 43 EBIT 465 138 237 EBIT Margin % 54 23 +31 ppt Portfolio Investment Book Value 11165 4901 128 Q1 Highlights * Strong growth in both revenue and earnings driven by Italian Joint Venture * Good earning
Slide 10: Italy - weakness in CMS but strength in PI — group impact in Q1 2019
Italy - weakness in CMS but strength in PI — group impact in Q1 2019 Total performance in line with plan Cash flow lower than plan due to mix between service lines SEKm Revenue Service Line Earnings Common Costs EBIT (CMS Margin / PI ROI Cash Flow to Intrum CMS Platform Lower than plan Full Portfoli
Slide 11: Northern Europe
Northern Europe FY 2018 SEKM Change FX Adjust All figures adjusted Ro Revenues 989 915 8 6 4076 EBIT 316 288 10 7 | 1453 EBIT Margin % 32 31 +1 ppt | 36 Portfolio Investment Book Value 7753 6969 11 | 7753 Q1 Highlights + Very solid quarter across all units in the region and from both service lines *
Slide 12: 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 12
Slide 13: Portfolio Investments
Portfolio Investments SEK M Change FX Adjust All figures adjusted % % abt lar Revenues 1771 1495 20 15 6 602 Service Line Earnings 1289 814 58 54 | 3991 Service Line Earnings Margin, % 72 54 +18 ppt | 60 Investments 1277 1373 7 | 11758 ROI %* 16 15 +1 ppt | 14 Portfolio Investments Book Value 31392
Slide 14: Credit Management Services
Credit Management Services SEK M Change FX Adjust All figures adjusted % % Revenues 2375 2209 8 4 Service Line Earnings 515 548 -6 -10 Service Line Earnings Margin, % 22 25 -3 ppt Excluding Italy & Spain Revenues 1713, 1595 7 4 Service Line Earnings 410 368 am) 8 Service Line Earnings Margin, % 24 2
Slide 15: From EBIT to EBIT Adjusted
From EBIT to EBIT Adjusted Sree FY 2018 EBIT 1347 897 50 4428 3978 Positive Revaluations of Portfolio Investments 120 45 870 795 Negative Revaluations of Portfolio Investments. -104 -32 -779 -707 Compensation for early termination of BPO 146 ie) 324 178 Lindorff Integration Costs 35 -65 -322 -352 Tr
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Slide 17: Common costs
Common costs SEKM Change FX Adjust RTM FY 2018 All figures adjusted % % Common Costs 454 -389 7 13 -1570 1505 Q1 Highlights * Common Costs Adj are higher than LY + Year over year increase mainly due to impacts of M&A (adding Joint Venture management structure to Italian business and new market entri
Slide 18: Synergies from Lindorff Integration
Synergies from Lindorff Integration * Coming towards the beginning of the end * SEK 570m in run-rate synergies realized after Q1 2019 * Q1 2019 P&L effect vs LY is SEK 75m intrum Pwsek By end of Q12019 By end of 2019 Run rate synergies 570 680 Accumulated cost to A 4 635 725 realize synergies 18
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Slide 20: Short and medium term focus in 2019
Short and medium term focus in 2019 Integrate Solvia and realise cost efficiencies in Spain Further develop broad partnership with Europe’s leading financial institutions intrum 20
Slide 21: Q&A
intrum Q&A
Slide 22: intrum
intrum
Slide 23: Table of contents
Table of contents Cash multiple 6. Balance sheet highlights 7. Upcoming IR activities intrum 23
Slide 24: Debt maturity profile
‒ 25 000 ‒ ‒ 20 000 15 000 ‒ MSEK ‒ ‒ 10 000 ‒ 5 000 ‒ - 2019 2020 2021 2022 2023 2024 ‒ CP Bonds SEK MTN Private Placement RCF Utilised Unutilised RCF ‒
Slide 25: 18,0% 17,5% 17,5% 15,7% 14,7% 14,4%
18,0% 17,5% 17,5% 266 15,7% 14,7% 14,4%
Slide 26: Collections vs Active Forecast per quarter and R12
Collections vs Active Forecast per quarter Collections vs Active Forecast R12 26
Slide 27: 58,7 48,9 39,6 30,2 23,1 17,7 13,6 10,6 8,2 6,3 4,5 3,1 1,8 0,8
70 58,7 60 48,9 50 39,6 40 30,2 30 23,1 20 17,7 13,6 10,6 10 8,2 6,3 4,5 3,1 1,8 0,8 0,1 0 27
Slide 28: 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 2,57 2010 1906 2,69 2011 2648 2,41 2012 3785 2,31 2013 3431 2,20 2014 3 867 2,31 2015 5036 1,99 2016 4979 2,02 2017 7804 1,80 2018 11854 1,98 2019 1277 2,09 Gross Cash-on-Cash Mult
Slide 29: Balance sheet highlights
6. 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 30: Preliminary and subject to future updates
• • • • • • • • • • • • • • * Preliminary and subject to future updates 30
Slide 31: 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 recommenda
Slide 32: Leading the way to a sound economy
Leading the way to a sound economy. intrum