Interim report January-June 2004

• Earnings per share for the first six months of the year improved to SEK 0.88 (–0.04). • Net earnings for the half year rose to SEK 74.8 M (–3.1). • Revenues for the half year amounted to SEK 1,402.1 M (1,419.7). • Cash flow from operating activities was SEK 83.9 M (84.6) after repayments in England of non-allocated receipts of SEK 53.1 M (0). • A SEK 75 M purchase of unsecured bank loan portfolio in the UK finalized in July.

January–June: Revenues and Earnings Consolidated revenues for the period January–June were unchanged in local currencies. Continued growth in the Netherlands, Sweden, Finland and France, with rising volumes from clients in the telecom and utility sectors, is being offset mainly by lower number of new cases from existing clients in England as well as by lower volumes in Norway and Germany. Operating earnings (EBITA) rose to SEK 178.6 M (81.3) compared with the corresponding period of 2003. The result for 2003 was charged with total nonrecurring expenses of SEK 121.0 M for England, Germany, Belgium and the Netherlands. The earnings decline adjusted for these nonrecurring items is primarily due to high administrative expenses in Consumer Collection & Debt Surveillance in England. Finland, the Netherlands, Sweden and Italy reported a positive earnings trend. Operating earnings (EBIT) rose to SEK 121.8 M (19.4). Earnings before tax and minority interests for January-June increased to SEK 100.9 M (–14.2), while net earnings for the period rose to SEK 74.8 M (–3.1). April–June 2004: Revenues and Earnings Consolidated revenues for the period April–June amounted to SEK 698.4 M (702.1) and were unchanged in local currencies. Operating earnings (EBITA) in the second quarter 2004 rose to SEK 81.1 M (18.3) compared with the corresponding period last year, when the result was charged with SEK 80.0 M for accounting inaccuracies in England. In addition to continued high administrative expenses the earnings decline, adjusted for nonrecurring items, are due to poor development in certain portfolios of written-off receivables in England and Austria, where also an adjustment in the value of a portfolio was carried out. Operating earnings (EBIT) rose to SEK 54.4 M (–13.5). Earnings before tax and minority interests for the quarter increased to SEK 44.2 M (–31.3), positively affected by a better financial net. Net earnings for the period rose to SEK 41.2 M (–9.3). Service Lines for April-June Consumer Collection & Debt Surveillance: Quarterly revenues amounted to SEK 439.0 M (429.7), corresponding to more than 60 percent of consolidated revenues. The service line’s continued organic growth of 3 percent is attributable to Finland and Sweden, where new and existing telecom and energy customers contributed to the positive development. The Netherlands, France, Switzerland and Italy also contributed to organic growth, principally through increased volumes from key clients in the above-mentioned sectors. In addition, Italy registered a large inflow of cases from a major new client. Operating earnings (EBITA) for the second quarter decreased to SEK 77.6 M (100.9), largely due to high administrative expenses in England as well as lower volumes in Norway and Germany. Commercial & International Collection: Quarterly revenues decreased to SEK 153.9 M (163.60) mainly due to a lower case inflow in Germany, Switzerland and Italy compared with the corresponding quarter of 2003. The service line is reporting growth in England, Sweden, Finland and Norway. Operating earnings (EBITA) rose to SEK 14.1 M (10.6) for the period. Purchased Debt: Service line revenues decreased to SEK 45.6 M (50.6) during the second quarter. Collections from portfolios in Finland, Switzerland and Poland remained good during the quarter. Growth was affected by certain portfolios in England and Austria developing poorly. The operating earnings (EBITA) for the period fell to SEK 11.0 M (24.1). Sales Ledger: Revenues rose to SEK 34.7 M compared with SEK 22.7 M in the second quarter of 2003. The increase is largely due to growing demand from the telecom, financial service and media sectors in the Netherlands, Finland, Italy and France. The operating deficit for the period was SEK –7.6 M (–8.0). The positive impact on earnings from volume growth was offset by continued expenses for the migration to a new production system in Sweden and a move of operations in the Netherlands. Other Services: Service line revenues declined from SEK 55.9 M to SEK 48.7 and produced an operating deficit (EBITA) of SEK –2.5 M (–2.9). The decrease in quarterly revenues for the service line is primarily due to the downsizing of the Swiss credit information and credit guarantee operation. Production disruptions in the Norwegian operation engaged in purchases of fresh receivables have adversely affected revenues and operating earnings. The VAT refund services offered by Intrum Justitia in Finland have developed well, contributing to the service line’s improved earnings for the period. Expenses Administrative expenses rose in England due to the legal investigation, expanded administrative resources and auditing expenses. The consolidation of the Dutch operations in a single property also added to administrative expenses. Central expenses fell due to the fact that a Group-wide IT project was concluded in 2003. Items Affecting Comparability No items affecting comparability affected the second quarter of 2004. Items affecting comparability of SEK 80 M in the corresponding quarter of 2003 relate to the accounting inaccuracies in England. Six-month earnings for 2003 were charged with an additional SEK 41 M for the integration of the German operations and a rationalization package in the Netherlands and Belgium. The reserve of SEK 15.0 M for England that was established in connection with the full-year report for 2003 has not yet been utilized. Net Financial Items Financial expenses were lower than the year-on-year period, which is largely due to lower negative foreign exchange rate differences. Net interest expense also improved thanks to lower market interest rates, mainly in Norwegian kroner and euro. Cash Flow and Investments Cash flow from operating activities amounted to SEK 83.9 M during the first half year, against SEK 84.6 M in the corresponding period of 2003. Cash flow during the first half year 2004 was charged with SEK 53.1 M for repayments of previously unallocated receipts in England. The change in working capital was positive during the second quarter. Investments in tangible and intangible fixed assets were lower than the corresponding period of 2003. Purchases of written-off receivables amount to SEK 134.3 M (46.5), including disbursements of SEK 36.1 M in the first half year 2004 for purchases contractually agreed upon in 2003 and SEK 37.3 M in prepaid purchases during the second half year 2004. During the second quarter of 2004 Intrum Justitia raised the ownership interest in its Icelandic associated company from 20 to 25 percent. During the first half year the Group lent SEK 55.5 M to the joint venture company it owns together with Goldman Sachs to finance the purchase of a British portfolio of written-off debt after the closing day. Financing As of June 30, 2004 net debt was SEK 798.1 M, against SEK 768.6 M at year-end 2003. Shareholders’ equity amounted to SEK 1,316.6 M, compared with SEK 1,240.8 on December 31, 2003. Shareholders’ equity was positively affected by SEK 7.4 M by fluctuations in exchange rates. Shareholders’ equity was negatively affected by a preliminary estimate of SEK –6.4 M due to the change in accounting principles for pensions. As of June 30, 2004 consolidated liquid assets totaled SEK 174.0 M, compared with SEK 243.2 M on December 31, 2003. Unutilized credit facilities amounted to SEK 295.0 M on the same date (SEK 301.7 M at year-end 2003). Minority Interests Minority interests of SEK –2.4 M in the income statement and SEK 17.6 M in the balance sheet refer principally to the 40% minority holdings in the Group’s companies in Poland, the Czech Republic and Hungary as of April 2003. Goodwill Consolidated goodwill amounted to SEK 1,494.3 M, against SEK 1,528.1 M at year-end 2003. The change during the half year consists of goodwill amortization of SEK –56.8 M and the effect of exchange rate fluctuations of SEK 23.0 M. Tax The Group’s tax expense for the six-month period includes a positive effect of SEK 15.7 M booked after the English subsidiary received approval from the tax authorities for the deductibility of certain expenses from 2001. Excluding the one-time effect of SEK 15.7 M, the Group’s tax expense remains 25 percent of earnings before goodwill amortization. Human Resources The average number of employees during the quarter was 2,916 (2,938). The number of employees has increased in Poland and Finland to handle expanded volume, at the same time that reductions have been made in Germany. Parent Company The parent company, Intrum Justitia AB (publ), provides the Group’s head office functions and certain Group-wide development and marketing services. The parent company had revenues of SEK 8.0 (26.7) and pre-tax deficit of SEK –37.7 M (–27.4). The parent company invested SEK 0.3 M (0.1) in fixed assets during the half year and had liquid assets of SEK 0.0 M (0.3) at the end of the period. The average number of employees was 20 (18). Market and Outlook The trend toward increased outsourcing and higher indebtedness is expected to continue, particularly in the Consumer Collection & Debt Surveillance service line. The Outlook given on May 5 was as follows: “The outlook, comprising the entire Group, forecasts that organic growth in 2004 will exceed the previous year. Due to the weak start of 2004, growth for the year is expected to be below the Group’s long-term target of 10% organic growth.” In the new outlook the Intrum Justitia Group revenue for the fiscal year 2004 is expected to be in line with the previous year. The Group’s long-term target of 10 percent organic growth remains. The Intrum Justitia Share The Intrum Justitia share rose by 16% during the first half year 2004. During the same period Stockholmsbörsen’s All Share Index rose by 10%. During the period 28.0 million shares were traded, corresponding to 33 percent of the total number of shares outstanding as of June 30. Since March 29 the share is again traded in its ordinary position on the O-list of Stockholmsbörsen and since July 1 is included in the Attract40 segment. The number of shareholders as of June 30 was 3,633 (1,818). On May 27 Amaranth Capital L.P. acquired a total of 4.5 million shares from Parkerhouse Investments. Highlights after the Conclusion of the Report Period In July Intrum Justitia and Goldman Sachs’ joint venture company made its first purchase of written-off debt. A portfolio of defaulted unsecured bank loans was acquired from a leading British bank. All collections will be administered by Intrum Justitia’s British subsidiary. An Extraordinary General Meeting on August 17, 2004 elected Lars Förberg as a new member and Dennis Punches as a deputy member of Intrum Justitia AB’s Board of Directors for the period through the conclusion of the next Annual General Meeting. The Board currently consists of nine members with one deputy. Accounting Principles This Interim Report has been prepared in accordance with generally accepted accounting practice in Sweden and accounting standard RR 20 of the Swedish Financial Accounting Standards Council (RR). From January 1, 2004 the company applies the Swedish Financial Accounting Standards Council’s accounting standard RR29 Employee Benefits, which contains, among other things, uniform regulations on the actuarial calculation of provisions for pensions in defined-benefit pension plans. These pensions were previously reported by each Group company in accordance with the local practice in each country. The amended accounting principles have resulted in an increase in provisions for defined-benefit pensions in Norway, France and Italy totaling SEK 17.7 M through a decrease in shareholders’ equity of SEK 6.4 M and a reclassification of other long-term liabilities of SEK 11.3 M. The pension obligations in Sweden according to the so-called ITP plan are still reported as defined-contribution pension solutions since Alecta has stated that it will not be able to supply the information companies need to report them as defined-benefit pension solutions. As of 2004 the Group reports bad debt losses on its accounts receivable as a portion of sales and marketing expenses, in accordance with Swedish practice. In the previous year they were reported as cost of services sold. Comparative figures have been restated due to this reclassification. The company has otherwise applied the same accounting principles as in previous years. Harmonization of New Accounting Principles From January 1, 2005 Intrum Justitia will report in accordance with International Financial Reporting Standards (IFRS, formerly IAS). Intrum Justitia currently complies with the recommendations of the Swedish Financial Accounting Standards Council. Although the latter have gradually been adapted to IFRS, a number of differences remain. Intrum Justitia has appointed a steering committee to monitor developments and harmonize the company’s accounts with the new rules. Based on what is now known, the only major differences between the current accounting principles and IFRS regard the reporting of acquisitions and goodwill, as well as financial instruments. Intrum Justitia will provide more detailed information on the effects on the company’s reporting during the fourth quarter. Reporting Dates The Interim Report for January-September 2004 will be published on October 27, 2004. The Full-Year Report for 2004 will be published on February 17, 2005 Stockholm, August 18, 2004 Intrum Justitia AB (publ) Jan Roxendal President & Chief Executive Officer This Interim Report and other financial information are available at Intrum Justitia’s website: www.intrum.com Denna delårsrapport finns även på svenska. Presentation of the Interim Report The interim report and presentation material are available at www.intrum.com > Investors. Intrum Justitia’s President & CEO Jan Roxendal and CFO Bo Askvik will comment on the report at a telephone conference today at 10:00 a.m. CET. To participate by telephone, call +44 (0)207 162 0191. A recorded version will be available by telephone: +44 (0)208 288 4459 using the code 506 362. For further information, please contact: Jan Roxendal, President & CEO Tel: +46 8 546 10 200 Bo Askvik, CFO Tel: +46 8 546 10 200 Anders Antonsson, Investor Relations Tel: +46 8 546 10 206, mobile: +46 703 36 78 18