Slide 1: Interim Report October — December 2019
Interim Report October — December 2019 February 4 2020 Mikael Ericson, President and CEO Anders Engdahl, CFO intrum
Slide 2: Q4 Highlights
Q4 Highlights Accelerating growth rates supported by Piraeus partnership * Group EBIT adjusted up 47% Partnerships Intesa Sanpaolo in Italy, Solvia with Banco Sabadell in Spain and Piraeus Bank in Greece contributing to growth * Financial performance overall good Solid performance from Portfolio Inv
Slide 3: Reflections on 2019
Reflections on 2019 An eventful year — fortifying our market leadi Intesa partnership contributing to both CMS and PI growth intrum Adj. EPS of SEK 27.8 Invested SEK 7.3bn in and proposed DPS of portfolios and maintained SEK 11 (9.5) for 2019 | By establishing the strong collection performance Pirae
Slide 4: Market Outlook
Market Outlook Active market opportunity across Europe * Clients affected by changing regulatory landscape, suggesting significant business opportunity in coming years * Broad based market activity level across our regions Stable outlook with macro moving sideways * Industry competition has become m
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Slide 6: Group Financials in Summary
Group Financials in Summary Q4 2019 Q4 2018 Change % FY 2019 FY 2018 Revenues 4663 3517 33 15985 13 442 19 EBIT -2137 1003 -313 2060 3978 -48 Adjustments (Adj) -3 958 -233 -4148 -522 EBIT Adj 1821 1236 47 6208 4500 38 Net profit for the period -2 482 482 -615 -285 1943 15 Earnings per share -18,84 3
Slide 7: From EBIT to EBIT Adjusted
From EBIT to EBIT Adjusted Items affecting comparability MIncrease Mi Decrease Ml Total Q4 Q4 SEKM 2019 2018 FY 2019 .° ve EBIT -2137 1003 2060 15 Positive Revaluations of Portfolio Investments 375 408 920 1,0 Negative Revaluations of Portfolio Investments -374 -332 -892 cS 05 Impact from early term
Slide 8: Credit Management Services
Credit Management Services SEK M Q4 Change FX Adjust Change FX Adjust All figures adjusted 2018 % % AoW lar % % Revenues 3.458 2403 44 A | 11273 9 257 22 18 Service Line Earnings 948 657 44 4 | 2912 2489 7 15 Service Line Earnings Margin, % 27 27 +0 ppt | 26 27 -l ppt Q4 Highlights + Revenue growth
Slide 9: Portfolio Investments
Portfolio Investments SEKM Change FX Adjust Change FX Adjust All figures adjusted uo % yao) Iai wo % Revenues 1866 1665 12 9 7027 6306 "1 8 Service Line Earnings 1208 982 23 20 | 4947 3516 4 37 Service Line Earnings Margin, % 65 59 +6 ppt | 70 56 +14 ppt Investments 3780 5 444 31 | 7324 11854 -38 RO
Slide 10: Northern Europe
Northern Europe SEK M All figures adjusted Revenues EBIT EBIT Margin % Portfolio Investment Book Value Q4 Highlights Change FX Adjust y y , . FY 2019 5 6 4162 18 a7 | 1491 5 ppt | 36 1" | 8.404 FY 2018 Crane FX (Aalsi % 4002 4 1425 5 36 +0 ppt 7567 ul * Stable underlying performance with continued c
Slide 11: 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 11
Slide 12: Western and Southern Europe
Western and Southern Europe SEK M Q4 Change FX Adjust All figures adjusted 2018 % % rage) Ivete Revenues 1087 729 49 45 3715 2 622 EBIT 593 244 143, 134 | 2048 664 EBIT Margin % 55 33 +22 ppt | 55 25 Portfolio Investment Book Value 12 693 10 443 22 12 693 10 443 Q4 Highlights * Strong year-over-year
Slide 13: Iberian Peninsula & Latin America
Iberian Peninsula & Latin America SEK M Q4 Change FX Adjust All figures adjusted 2018 % % AoW Revenues 958 642 49 46 3323 EBIT 126 221 -43 -45 | 664 EBIT Margin % 13 34 -21 ppt | 20 Portfolio Investment Book Value 5931 6 462 -8 | 5931 Q4 Highlights vane FX Adjust 2 826 18 15 969 3 -33 34 -14 ppt 6 4
Slide 14: 2019 ambition: Italian partnership with Intesa
Italian partnership with Intesa Full year 2019 performance in line with plan and guidance 2019 outcome OMS Platform Portfolio SRV. Consolidated Impact All figures adjusted Revenue 1307 = 1307 Service Line Earnings 390 1247 1637 Common Costs = = WSS | | Lh eceecececeeeeeeceeececeeeeeeeee EBIT — — 148
Slide 15: Common Costs
Common Costs SEKM a4 Q4 Change FX Adjust Allfigures adjusted 2019 2018 % oe AOI Io Common Costs -335 -403 17-419 | 4651 =«-1505 10 Q4 Highlights * Common cost level starting to benefit from efficiency improvements and streamlining of overhead relating to recent years M&A * Q4 cost level run-rate is
Slide 16: Start 2019 / MTN transactions / End 2019
25 000 Start 2019 20 000 1 MTN transactions Jul: SEK 2bn 4 year transaction @ S3M + 3.25% 15 000 Sep: SEK 900m tap @ 102 effective interest of S3M + 10 000 2.63% Nov: SEK 1.1bn 2 year transaction @ S3M +1.80% 5 000 1 - 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 EUR Bonds CP MTN EUR BOND PP RCF
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Slide 18: Short- and medium-term Focus in 2020
Short- and medium-term Focus in 2020 Execute on our business plan to achieve our 2020 targets of SEK 35 in EPS and Net Debt/Cash EBITDA of 2.5-3.5x Ensure our partnership with Piraeus Bank becomes fully operational Gradually standardise and centralise operations through shared service centres to enh
Slide 19: Q&A
intrum Q&A
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intrum
Slide 21: Table of Contents
Table of Contents 1. Funding base 2. Pro forma portfolio investments and ROI 3. Portfolio inves’ s collections vs active forecast ‘ortfolio investments ER 5. Portfolio investments gross cas! ash multiple 6. Cash flow 7. Balance sheet highlights 8. Upcoming IR activities intrum 21
Slide 22: Funding base
20 000 15 000 MSEK 10 000 5 000 - 2020 2021 2022 2023 2024 2025 2026 2027 CP Bonds SEK MTN Private Placement RCF Utilised Unutilised RCF * New RCF Facility effective from 15th January 2020 22
Slide 23: Pro forma portfolio investments and ROI
18,0% 17,5% 17,5% 266 15,7% 15,0% 14.0%
Slide 24: Collections vs Active Forecast per quarter and R12
Collections vs Active Forecast per quarter Collections vs Active Forecast R12 24
Slide 25: Portfolio investments ERC
70 65,0 60 54,2 50 43,1 40 33,2 30 25,7 20,1 20 15,7 12,3 9,5 10 7,1 5,1 3,4 1,9 0,7 0,2 0 Total of which Italian JV 25
Slide 26: 5. 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 2010 and before 11 880 2,62 2011 2648 2,46 2012 3785 2,33 2013 3431 2,22 2014 3867 2,36 2015 5036 1,94 2016 4979 2,10 2017 7804 1,73 2018 11854 1,86 2019 7324 1,98 Gross Cash-on-Cash Multiple: Gross ca
Slide 27: 6. Cash Flow - Summary
6. Cash Flow - Summary Q4 2019 Q4 2018 FY 2019 FY 2018 Operating earnings (EBIT) -2 137 1003 2060 3978 Amortisation and revaluation of portfolio 1057 979 4155 3854 Amortisation/depreciation and impairment 3385 216 4284 900 Net Interest 119 -127 1392 -1184 Tax -322 -269 -802 -590 Other -27 nN 1913 -8
Slide 28: 7. Balance Sheet Highlights
7. Balance Sheet Highlights FY 2019 FY 2018 Intangible fixed assets 40 239 37181 - where of goodwill 33 358 33.055 Tangible fixed assets 1100 493 Financial fixed assets 36 530 30 230 - where of portfolio investments 28 508 24 830 - where of shares in joint ventures 6 539 4746 Current assets 8 267 81
Slide 29: 8. Upcoming IR Activities
8. Upcoming IR Activities Q4 Roadshow Additional events 2020 * Stockholm, February 5 * Carnegie annual NPL seminar, Stockholm March 25 * Europe, February 6-7 * Morgan Stanley Leveraged Finance Conference, London, March 26 + USA, February 10-12 + Handelsbanken Small & Mid Cap seminar, Stockholm, June
Slide 30: 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 31: Leading the way to a sound economy
Leading the way to a sound economy. intrum