Interim report January-March 2018

First quarter 2018  

•  Consolidated net revenues for the first quarter of 2018 increased to SEK 3,115 M (1,551). Pro forma for the first quarter of 2017, net revenues were SEK 2,928 M.

•  Operating earnings improved to SEK 897 M (468). Pro forma for the first quarter of 2017, operating earnings were SEK 841 M.

•  The operating earnings of SEK 897 M include non-recurring items of SEK –89 M (pro forma in the preceding year –89) and revaluations of SEK 13 M (pro forma in the preceding year 42). Accordingly, operating earnings excluding non-recurring items and revaluations increased to SEK 973 M (pro forma in the preceding year 888).

•  Net earnings for the quarter amounted to SEK 364 M (347) and earnings per share were SEK 2.77 (4.77). Earnings include SEK –84 million in earnings from discontinued operations, of which SEK –126 million are related to transaction costs on the sale of subsidiaries in Sweden, Norway, Denmark, Finland and Estonia, in accordance with the Group’s undertaking in connection with the merger with Lindorff in 2017.

•  Cash flow from operating activities increased to SEK 1,448 M (695).

•  The carrying amount for portfolio investments has risen by 7 percent since the end of 2017. Portfolio investments for the quarter amounted to SEK 1,373 M (pro forma in the preceding year, 2,522). The return on portfolio investments was 15 percent (pro forma in the preceding year, 16 percent).

•  In service line Credit Management, revenues grew on a pro forma basis by 3 percent, and the service line margin declined by 2 percentage points, attributable to Spain. Other business units in the Group are developing as planned.

•  The divestment of Intrum Justitia’s former subsidiaries in Norway and Lindorff’s former subsidiaries in Sweden, Denmark, Finland and Estonia was completed on March 20, 2018.

•  An agreement has been signed after the balance sheet date entailing a partnership with the Italian bank Banca Intesa Sanpaolo, who will contribute their entire recovery operations with 600 employees and a portfolio of non-performing loans that will be owned together with co-investors. Intrum’s net investment is expected to amount to EUR 670 M.

Presentation of the interim report

The interim report and presentation materials are available at www.intrum.com/Investor relations. President & CEO Mikael Ericson and Acting CFO Thomas Moss will comment on the report at GT30, Grev Turegatan 30 in Stockholm, on April 27, starting at 9:00 CET. The presentation can also be followed at www.intrum.com and/or www.financialhearings.com. To participate by phone, call +46 8 566 427 01 (SE), +44 20 300 898 17 (UK), eller +1-855-753-2236 (USA).

For further information, please contact

Mikael Ericson, President and CEO, tel: +46 8 546 102 02

Thomas Moss, Acting CFO, tel: +46 8 546 102 02

Thomas Moss is the contact under the EU Market Abuse Regulation.

This information is such that Intrum Justitia AB (publ) is required to publish under the EU Market Abuse Regulation. The information was provided under the auspices of the contact person above for publication on April 27, 2018 at 7.00 a.m. CET.

Intrum is the industry-leading provider of Credit Management Services with a presence in 24 markets in Europe. Intrum helps companies prosper by offering solutions designed to improve cash flows and long-term profitability and by caring for their customers. To ensure that individuals and companies get the support they need to become free from debt is one important part of the company’s mission. Intrum has more than 8,000 dedicated and empathetic professionals who serve around 80,000 companies across Europe. In 2017 pro-forma revenues amounted to SEK 12.2 billion. Intrum is headquartered in Stockholm, Sweden and the Intrum share is listed on the Nasdaq Stockholm exchange. For further information, please visit www.intrum.com.