INTERIM REPORT JANUARY-JUNE 2012

Second quarter 2012

• Consolidated net revenues for the second quarter of 2012 amounted to SEK 1,040 M (977). Adjusted for currency effects, revenues rose by 7 percent with an organic growth of 7 percent (3).

• Operating earnings (EBIT) amounted to SEK 218 M (210). The operating earnings include revaluations of purchased debt portfolios amounting to SEK 2 M (16). The operating margin was 21 percent (21). Excluding revaluations of purchased debt portfolios, the operating margin was 21 percent (20).

• Net earnings for the quarter amounted to SEK 139 M (110) and earnings per share were SEK 1.77 (1.39).

• Disbursements for investments in purchased receivables amounted to SEK 667 M (276).

• Cash flow from operating activities amounted to SEK 410 M (326).

• In May, the acquisition was completed of a Polish purchased debt portfolio with an outstanding collection value of about SEK 1.5 billion.

• In June, portions of the Group’s bank loans were renegotiated. The renegotiated syndicated loan facilities amount to SEK 5 billion.

Comment by President and CEO Lars Wollung
The second quarter of the year brought continued positive development for Intrum Justitia compared with the year-earlier period. Organic growth was 7 percent and operating earnings rose by 11 percent adjusted for currency effects and portfolio revaluations.

Cash flow from operations rose by 26 percent to SEK 410 M in the second quarter and the Group’s financial position is strong. During the quarter, to be able to benefit from opportunities for expansion over the coming years, we have continued our efforts to strengthen our loan financing by extending our opportunities to borrow from banks and to improve the maturity structure of the loans.

Our Financial Services service line, which focuses primarily on purchased receivables, continues to develop well. Income rose by 12 percent in the second quarter, with continued high margins and a very favorable return. The investment level in the second quarter was the highest in Intrum Justitia’s history and was mainly attributable to a high level of investment in Northern Europe.

In our Credit Management service line, we are seeing a continued stable trend with a 5 percent growth in revenues in the second quarter. Growth is being driven by increasing investment in portfolios of purchased  receivables and by growth in credit management on assignment from external customers. In the short term, operating earnings will be affected negatively by continued increases in expenses for pursuing cases through the legal systems – a trend that will continue in the second half of the year. In the long term, this generates favorable conditions for strengthening profitability and increasing the stability in the return on our portfolios of purchased receivables.

In our regions, Northern Europe has continued to show a positive trend in both revenues and operating earnings as a consequence of increased investments in portfolios of purchased receivables, as well as good organic growth in Credit Management. In Central Europe, earnings and margins developed favorably in the second quarter, although the level of investment in portfolios with purchased receivables was unsatisfactory. In Western Europe, we are seeing good organic growth in Credit Management but a negative impact on revenue and earnings from selectively decreased investment levels in purchased receivables as a consequence of the uncertain macro trend in several countries in the region.

Work to develop our service offering in the early stages of the payment chain is continuing according to plan and towards the end of the second quarter, we launched a factoring service in the Swedish market.

Presentation of the Interim Report
The interim report and presentation material 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)8 505 597 72 (SE) or +44 (0)20 710 862 05 (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