Full-year report 2007

Fourth quarter 2007:
• Consolidated revenues amounted to SEK 888.0 M (797.5), an increase of 11.3 percent. Organic growth was 12.3 percent (6.7).
• Operating earnings (EBIT) increased by 4.4 percent to SEK 206.5 M (197.8). Operating earnings, excluding net write-ups and write-downs of purchased debt portfolios of SEK 1.8 M (–3.1) and nonrecurring items in the fourth quarter 2006 of SEK 14.4 M, increased by 9.8 percent. Excluding revaluations and nonrecurring items in 2006, the operating margin was 23.1 percent (23.8).
• Net earnings for the fourth quarter increased by 4.0 percent to SEK 154.7 M (148.7).
• Investments in Purchased debt, comprising actual payments during the quarter with the addition of the previously announced Austrian portfolio which is not yet paid for, amounted to SEK 611.1 M (389.9). The return on purchased debt was 21.0 percent (14.5).

Full-year 2007:
• Consolidated revenues for 2007 amounted to SEK 3,225.2 M (2,939.6), an increase of 9.7 percent. Organic growth was 10.4 percent (4.3). Operating earnings amounted to SEK 667.8 M (586.7) and the operating margin was 20.7 percent (20.0).
• Earnings per share before dilution amounted to SEK 5.86 (5.09) for the full year.
• Investments in Purchased debt, comprising actual payments during the year with the addition of the previously announced Austrian portfolio which is not yet paid for, amounted to SEK 996.2 M (869.7). The return on purchased debt was 17.0 percent (14.4).
• The Board of Directors proposes a dividend of SEK 3.25 per share (2.75).

“We leave 2007 having met all our financial objectives. In addition, we have taken a number of concrete steps, such as increased coordination within the regions, a common datacenter and improved processes, which have strengthened Intrum Justitia in its role as a professional credit management partner. In the fourth quarter we were pleased to see organic growth of 12.3 percent and growth in Credit Management of 8.2 percent. Through investments, Purchased Debt has increased its carrying value as of the balance sheet date by 43 percent compared with the previous year, in addition to generating a return on invested capital of 21 percent for the fourth quarter. As a whole, this provides a solid foundation for 2008. In late 2007 we had expenses related to restructuring and strategic projects, however we are convinced there is still potential for good expansion in margins.”

Michael Wolf, President & CEO, Intrum Justitia