Interim report January–June 2007

• Consolidated revenues for the second quarter 2007 amounted to SEK 786.9 M (707.2), an increase of 11.3 percent. Organic growth was 11.7 percent.
• Operating earnings (EBIT) increased by 32.1 percent to SEK 147.7 M (111.8). The operating margin expanded to 18.8 percent (15.8). Operating earnings include write-ups and write-downs of purchased debt portfolios of SEK +2.0 M, net (0.0).
• Net earnings for the second quarter increased by 26.3 percent to SEK 93.7 M (74.2).
• Earnings per share before dilution amounted to SEK 1.19 (0.94) for the quarter. For the first half year earnings per share amounted to SEK 2.43 (1.94).
• Investments in Purchased Debt in the second quarter amounted to SEK 125.2 M (69.5).
Return on purchased debt amounted to 18.8 percent (14.5).

Michael Wolf, President and CEO: “At this year’s Capital Markets Day we presented the details of our strategy work and our new financial objectives. Our strategy is based on a time frame of 3–4 years, but we are pleased to already this quarter have achieved organic growth of 11.7 percent and profitability in line with these objectives. A large part of the Group has contributed to this, notably Sweden. Higher growth in the Credit Management service line of 6.2 percent is also greatly important. The increase in our operating margin was achieved through revenue growth, and an improved situation in previously underperforming countries, in addition to the fact that our newer operations are improving their levels. The Purchased Debt service line continues to deliver strong, stable earnings, which we see as a sign of the quality of our operational management and ability to spread risk across 23 countries.”