Slide 1: Interim report April - June 2015
Interim report April - June 2015 July 16th 2015 Lars Wollung, CEO Erik Forsberg, CFO
Slide 2: Q2 Key highlights
Q2 Key highlights • Continued strong financial performance ‒ EBIT excluding revaluations and fx-impact +11% ‒ All three financial targets met, with EPS growth last 12 months at 37% • Financial performance driven by strength of our hybrid business model ‒ CMS: earnings growth and solid margins ‒ Purc
Slide 3: Q2 Key financials
Q2 Key financials 11% EBIT growth (adjusted for currency and debt portfolio revaluations) 37% RTM EPS growth 30% Growth in operating cash flow 24% Return on purchased debt 509 MSEK investments in purchased debt 7% Growth in purchased debt book value 3(25) © Intrum Justitia AB 2014. All rights reserv
Slide 4: Financial summary
Financial summary Q2 Q2 Change YTD YTD Change 2015 2014 % 2015 2014 % Revenues, MSEK 1 476 1 301 13 2 846 2 505 14 EBIT, MSEK 448 372 20 787 655 20 EBIT margin, % 30 29 n/a 28 26 n/a EPS growth, % 36 26 n/a 37 24 n/a Cash flow from operations, MSEK 739 570 30 1 222 1 100 11 Investments in purchased
Slide 5: Northern Europe
Regional development Market leader Northern Europe Top five 49 percent of total revenues Other Q2 Highlights • Revenue growth excluding revaluations and fx-impact up 9% year-on-year, due to the Danish acquisition in 2014 as Q2 Q2 Change Fx Adj well as organic growth Excl. PD Revaluations, Quarter 20
Slide 6: Central Europe
Regional development Market leader Central Europe Top five 29 percent of total revenues Other Q2 Highlights • Continued good revenue growth excluding fx-effects, mainly from strong collections for the PD service Q2 Q2 Change Fx Adj Excl. PD Revaluations, Quarter 2015 2014 % % line Revenues, SEKm 414
Slide 7: Western Europe
Regional development Market leader Western Europe Top five 22 percent of total revenues Other Q2 Highlights • Revenue development approximately flat year-on-year, with growth in PD offset by slight decline for CMS Q2 Q2 Change Fx Adj Excl. PD Revaluations, Quarter 2015 2014 % % • Improvement in prof
Slide 8: Credit Management Services
Market leader Credit Management Services Top five 60 percent of total revenues Other Q2 Highlights • Revenue growth excluding currency impact mainly from past acquisitions in Denmark (Q4-14) and Switzerland Q2 Q2 Change Fx Adj (Q1-15) Reported numbers, Quarter 2015 2014 % % Revenues, SEKm 1 024 957
Slide 9: Financial Services
Market leader Financial Services Top five 40 percent of total revenues Other Q2 Highlights • PD Book Value growth at 7% (5% fx- adjusted) coupled with strong Q2 Q2 Change Fx Adj collections generated good revenue Reported numbers, Quarter 2015 2014 % % Revenues, SEKm 672 554 21% 15% growth and impro
Slide 10: PD Book value & growth
PD Book value & growth PD carrying value: SEK 6 435 M Book Value growth: 7% SEK M PD carrying value % Growth YoY 50% 6 000 7% 45% 15% 40% 5 000 33% 35% 4 000 30% 26% 25% 3 000 36% 20% 2 000 24% -1% 3% 15% 10% 1 000 5% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 Q2 Y o Y comparison 10(25) © Intrum J
Slide 11: Purchased debt, investments & ROI
Purchased debt, investments & ROI 2008–2015 PD ROI RTM excl revaluation SEK M 2 500 1 937 25% 266 KSEK 2 000 20% 477 1 500 15% FY 267 978 2475 Q1 KSEK 1 000 1804 2014 574 10% Q2 509 Q3 500 872 871 1050 5% 619 Q4 469 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 1) 2008 – 2013 paid investments 2) 2014
Slide 12: Purchased debt - revaluations
Purchased debt - revaluations Q2 YTD Q2 YTD PD revaluations, SEK m 2015 2015 2014 2014 Northern Europe 12 -21 12 0 Central Europe 19 37 8 10 Western Europe 14 22 3 3 Total 45 38 23 13 12(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 13: Balance sheet – Highlights
Balance sheet – Highlights 30 Jun 30 Jun Dev SEK m 2015 2014 % Intangible fixed assets 3 016 2 855 6 - whereof goodwill 2 753 2 608 6 Tangible fixed assets 121 117 3 Financial fixed assets 6 490 6 122 6 - whereof purchased debt 6 435 6 030 7 Current assets 2 107 1 875 12 Total assets 11 734 10 969 7
Slide 14: Cash flow statement
Cash flow statement Q2 Q2 Dev YTD YTD Dev SEK m 2015 2014 % 2015 2014 % Operating earnings (EBIT) 448 372 20 787 655 20 Depreciation 40 40 0 81 78 4 Amortization and revaluation of purchased debt 345 337 2 712 697 2 Income tax paid -21 -56 -63 -161 -101 59 Changes in factoring receivables -25 -24 4
Slide 15: Funding base
Funding base • Syndicated bank loan facility (up to SEK 5bn) Debt Maturity Schedule ‒ About SEK 2,4 bn utilized per Jun 2015 (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 Q2 15 Q2 15 RTM FY 2014 1. EPS growth to exceed 10% per year 36% 37% 31% 2. Return on PD investments to exceed 15% per year 24% 20% 20% 3. Net Debt/EBITDA should be between 2.0 and 3.0 2.0 2.0 1.9 16(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 17: Q&A
Q&A 17(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 18: Appendix
Appendix 18(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 19: This is Intrum Justitia
Market leader Top five This is Intrum Justitia Other European market leader in an attractive growth market Proven hybrid business model serving the full credit management value chain Delivering consistent, strong financial returns 2014 2013 Revenue 5 184 4 566 Diversification of risk through broad b
Slide 20: Revenues and EBIT margin, rolling 12 months
Revenues and EBIT margin, rolling 12 months Revenues: SEK 5 525 M EBIT margin: 28% SEK M 6 000 Revenues 30 5 500 EBIT 5 000 EBIT-margin (RHS) 25 4 500 4 000 20 3 500 % 3 000 15 2 500 2 000 10 1 500 1 000 5 500 0 0 2008 2009 2010 2011 2012 2013 2014 2015 Q2 20(25) © Intrum Justitia AB 2014. All right
Slide 21: Gross Collections vs. Active Forecast - R12
Gross Collections vs. Active Forecast - R12 10% 8% 6% 4% 2% 0% Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 21(25) © Intrum Justitia AB 2014. All rights reserved.
Slide 22: 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 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% 28% 30% 29% 30% 31% 34% 33% 32% 80% 40% 38% 50% 48% 51% 52% 49% 51% 52% 50% 49% 70% 61% 59% 56% 60% 75% 79% 50% 40% 69% 74% 72% 70% 71% 70% 69% 66% 67% 68% 30% 60% 62% 50% 52% 49% 48% 51% 49% 48% 50% 51% 20% 39% 41% 44% 10% 25% 21%
Slide 24: A broad indication going forward
A broad indication going forward Carrying value 30 Jun 2015: SEK 6,435 M +7% y-o-y (SEK 6,030 M) Gross collection: Carrying value x 2.1 Cash flow distribution 30 Jun of Gross collection 2015 2014 Y1 23% 22% Y2 17% 17% Y3 13% 13% Y4 11% 11% Y5 8% 9% Y6 7% 7% Y7 6% 6% Y8 5% 5% Y9 3% 4% 24(25) © Intrum
Slide 25: intrum justitia
intrum (~))) justitia Better business for all