Interim report January-June 2011

Second quarter 2011

• Consolidated net revenues for the second quarter of 2011 amounted to SEK 977.5 M (922.5). Adjusted for currency effects, revenues rose by 10.1 percent, of which organic growth amounted to 1.2 percent (–1.2).

• Operating earnings (EBIT) amounted to SEK 210.6 M (180.6). Adjusted for currency effects, this corresponds to an increase in operating earnings of 22.2 percent. The operating earnings include revaluations of purchased debt portfolios amounting to SEK 15.9 M (1.0).

• The operating margin was 21.5 percent (19.6).

• Net earnings for the quarter amounted to SEK 110.7 M (85.3) and earnings per share were SEK 1.39 (1.07).

• Disbursements for investments in purchased debt amounted to SEK 276.4 M (198.3), an increase of 39.4 percent.

• Cash flow from operating activities remains strong, amounting to SEK 326.5 M (365.8).

Comment by President and CEO Lars Wollung

Intrum Justitia continues to develop well in 2011. Operating earnings for the second quarter rose by 22 percent adjusted for currency effects.

Our Credit Management operations have a stable development and the measures taken in recent years to improve efficiency in operations and increase sales activities have produced the desired results. The integration of recently and previously acquired operations is also progressing according to plan. The operations acquired from Aktiv Kapital are contributing positively to operating earnings. Currency-adjusted operating earnings rose by 9 percent in the second quarter and the margin strengthened to 13 percent. The increased level of investment in Purchased debt and the effects of recently signed contracts with major customers are contributing to the improvement in earnings. Our operational excellence program is developing well, paving the way for further earnings improvement in the future.

Intrum Justitia’s service line Purchased Debt has developed well over both the first and second quarters. In the second quarter, the level of investment rose by 39 percent to SEK 276 M compared with the year-earlier period. Over the past twelve months, investments have amounted to about SEK 1.3 billion. Adjusted for currency effects, operating earnings rose by 47 percent and return for the quarter amounted to 22.7 percent. Activity with regard to small and medium-sized portfolios remains good and demand for integrated services that include what are known as forward-flow contracts is increasing. We are now also seeing increasing activity with regard to large portfolios. The agreement we signed at the end of June regarding a large bank portfolio in Germany serves as good indication of this.

In the Northern Europe region currency-adjusted operating earnings rose by 44 percent and the margin strengthened to about 25 percent in the second quarter, excluding revaluations. Several new customer contracts were signed during the quarter. A continued favorable level of investment in purchased debt also contributed to the improved margin.

In the Central Europe region, we see a continued weakening in operating earnings. Currency-adjusted operating earnings fell by 29 percent and the margin was 14 percent. Declining volumes in Germany as a consequence of the investment levels in portfolios of receivables being too low affected earnings negatively. At the end of June, Intrum Justitia signed an agreement to acquire a large bank portfolio from Commerzbank with a nominal value of EUR 300 M. The acquisition will provide positive effects as of the third quarter. The positive trend in Hungary, Slovakia and the Czech Republic, with increased operating earnings, continued also in the second quarter.

In the Western Europe region, currency-adjusted operating earnings rose by 6 percent and the margin strengthened to 19 percent. We are performing well in the region despite a challenging macroeconomic climate. Efforts to enhance efficiency and productivity mean that we are highly competitive – even in countries with a poorer macroeconomic outlook. In the Netherlands, our measures to adjust our cost base and strengthen the sales organization have given the desired effects and we have improved our earnings both sequentially and compared with the year-earlier period.

All indicators suggest that demand for services combining traditional credit management with purchased debt will continue to increase. As a market leader, with an integrated range of services in these areas, Intrum Justitia benefits by this trend. We see good opportunities to continue expanding our service offering, particularly early in the payment chain, in areas such as credit decision solutions and payment solutions. Our extensive program of measures to enhance earnings in the Credit Management service line continues and is expected to generate beneficial effects over the coming years.

For more 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