Intrum Ab · OMXSTO:INTRUM
Intrum Ab — Intrum Justitia — Investor Day (May 2007)
17 slides from Intrum Ab's investor day presentation, May 22, 2007
Slide 1: Capital Markets Day 2007
Capital Markets Day 2007 Presented by Benno E. Oertig, Regional Managing Director 22 May 2007
Slide 2: Placement of Intrum Justitia
Placement of Intrum Justitia • Intrum Justitia is NOT a collection company • Intrum Justitia is NOT an Accounts Receivable Management company • Intrum Justitia is NOT a Credit Information company 2
Slide 3: Positioning of Intrum Justitia
Positioning of Intrum Justitia Intrum Justitia is a Direct Marketing Company with two different markets: • Clients market • Debtors market 3
Slide 4: Positioning of Intrum Justitia
Positioning of Intrum Justitia Direct Marketing because: • Phone (incl. Mobile / SMS / Automated Outbound) • Letter (incl. Email) • Web (Debtor-Site) • One to One GW5 4
Slide 5: Bild 4 GW5 include yellow card in background!
Bild 4 GW5 include yellow card in background! g.wassink, 26/04/2007
Slide 6: Positioning of Intrum Justitia
Positioning of Intrum Justitia Being aware of the difference between the 2 types of clients is crucial for our success. In this presentation, we focus on debtor marketing. Our message since 1992 is: Fair pay… please! 5
Slide 7: Debtor marketing
Debtor marketing There are 3 main reasons why an invoice remains unpaid. The invoice is: • Disputed • Send to wrong address • Issued towards a debtor with a collection related problem => Focus of this presentation 6
Slide 8: Debtor market
Debtor market Breakdown of Clients Gross Turnover Consumers Debtors Non payers Late payers 7
Slide 9: Debtor marketing
Debtor marketing • Consumers can have overdue accounts, but through using the right collection activities, collectability is high. • We have to optimise turnover for our clients through fast and amicable collection of the overdue accounts, whilst focusing on the reactivation of the customers (ReConn
Slide 10: Debtor marketing
Debtor marketing • Debtors also have overdue accounts, but these accounts can only be collected through legal- or post legal collection procedures. We have to minimise the credit losses for our clients. They are indebted (passive and negative) 9
Slide 11: Debtor marketing
Debtor marketing Debtor marketing is the tool to select collection activities. Its goals are: • to maintain our clients customer base • to optimise cash flow for our clients • to minimise credit losses Also: • to solve a financial problem of the consumer/debtor 10
Slide 12: Debtor marketing
Debtor marketing To select the right collection activities: Client profile: Type of product / services sold. Debtor profile: socio demographic attributes and collection attributes. Case profile: balance, age of case, prior dunning activities, etc. 11
Slide 13: Debtor marketing
Debtor marketing Debtor Marketing combines objective measurements with subjective (psychological) experiences. Key questions: • What type of consumer/debtor are we dealing with? • What are the reasons for the late payment? • Which message do we wish to communicate to the debtor? • How can we motivat
Slide 14: Psychology in debtor behaviour
Psychology in debtor behaviour Focus on debtor behaviors increases recovery Each consumer / debtor is rated after a contact 13
Slide 15: Activity based costs
Activity based costs Permanent supervising of process costs • Cost - benefit analysis of every collection activity • Profitability analysis of every client portfolio • Permanent implementation of optimised workflows • Redesign of non profitable workflows 14
Slide 16: Business process (part)
Business process (part) Case opening process Scoring process Activity Based Costing Activity Based Costing Collectability rate Consumer / Debtor Contact 15
Slide 17: Market awareness
Market awareness Positive Influence on Market Perception of Intrum Justitia: • Public opinion Risk index – B2B – New B2C • Personal Campaigns targeted at students This resulted in the following awards: • 2005: Nomination Swiss Business Ethics Award • 2006: Golden Communicator for best PR Campaign 16