INTERIM REPORT JANUARY-MARCH 2013

• Consolidated net revenues for the first quarter of 2013 amounted to SEK 1,048 M (956).

• Operating earnings (EBIT) amounted to SEK 236 M (160). Operating earnings were burdened by  revaluations of purchased debt portfolios amounting to a negative SEK 4 M (negative 41).

• The operating margin was 23 percent (17). Excluding revaluations of purchased debt portfolios, the

operating margin was 23 percent (20).

• Net earnings for the quarter amounted to SEK 155 M (92) and earnings per share were SEK 1.94 (1.16).

• Disbursements for investments in purchased debt amounted to SEK 920 M (295).

• Cash flow from operating activities amounted to SEK 464 M (423).


Comment by President and CEO Lars Wollung

Intrum Justitia has started 2013 well. Operating earnings rose by 24 percent adjusted for revaluations of purchased debt portfolios and currency exchange rate changes, compared with the year-earlier period. On a rolling 12-month basis, earnings per share rose by 21 percent. Cash flow from operations rose 10 percent to SEK 464 M.

The Financial Services service line developed very well during the start of the year and at SEK 920 M, the level of investment in purchased debt was the highest for any individual quarter in Intrum Justitia’s history. The return on the portfolios amounted to a favorable 20 percent. The conditions for continued growth remain favorable, although the increase in the level of investment in purchased debt in the first quarter should be considered as exceptional.

The revenue trend in the Credit Management service line has been relatively unchanged compared with the preceding year, although it continued to be affected negatively by increased costs for cases being pursued through the legal systems. We are seeing clear positive effects from continuing to increase the number of legal cases and this will improve the operating margin in the future.

During 2013, we are launching a new service line, Intrum Justitia Finance. The service line offers customers services early in the payment chain that complement the existing Credit Management and Financial Services offerings, initially with factoring services and various payment and financing solutions for e-trade. The service line is developing as planned and we see good potential for it to contribute positively to the Group’s long-term growth.

Within our regions, development has been favorable in Northern and Central Europe while Western Europe developed less well in early 2013. In Northern Europe, growth is good in terms of both revenues and operating earnings, driven mainly by increased investment levels in purchased debt and good cost control. Central Europe had a strong quarter with good growth in earnings, affected partly by the decision made in 2012 to undertake measures to reduce costs in Germany – measures which are now having an effect on earnings. The trend in Credit Management in the Western Europe region in particular was negative in the first quarter as a consequence, among other factors, of continued price pressure. Increased focus on raising the pace of investment in purchased debt means that the income mix is now gradually improving.

Presentation of the Interim Report

The interim report and presentation materials are available at www.intrum.com > Investor relations. President & CEO Lars Wollung and Chief Financial Officer Erik Forsberg will comment on the report at a teleconference today, starting at 9:00 a.m. CET. The presentation can be followed at  www.intrum.com  and/or www.financialhearings.com. To participate by phone, call +46 (0)8 505 564 78 (SE) or +44 (0)20 336 453 72 (UK).

For further information, please contact

Lars Wollung, CEO & President
Tel: 46 8 546 102 02

Erik Forsberg, CFO
Tel: 46 8 546 102 02, E-mail: e.forsberg@ intrum.com

Annika Billberg, IR & Communications Director
Tel: 46 702 67 97 91, E-mail: a.billberg@intrum.com

Intrum Justitia is Europe’s leading Credit Management Services (CMS) group and offers services designed to measurably improve clients’ cash flows and long-term profitability. Intrum Justitia was founded in 1923, has around 3,100 employees in 22 countries and revenues of approximately SEK 3.8 billion in 2010. Intrum Justitia AB is listed on NASDAQ OMX Stockholm since 2002. For further information, please visit www.intrum.com

About Us

Intrum Justitia is Europe’s leading Credit Management Services (CMS) group, offering comprehensive services, including purchase of receivables, designed to measurably improve clients’ cash flows and long-term profitability. Founded in 1923, Intrum Justitia has some 3,850 employees in 19 markets. Consolidated revenues amounted to about SEK 5.6 billion in 2015. Intrum Justitia AB is listed on Nasdaq Stockholm since 2002. For further information, please visit www.intrum.com