Interim Report third quarter 2011

• Consolidated net revenues for the third quarter of 2011 amounted to SEK 998.1 M (922.9). Adjusted for currency effects, revenues rose by 8.5 percent, of which organic growth amounted to 2.9 percent (negative 2.2).
• Operating earnings (EBIT) amounted to SEK 263.6 M (211.2). Adjusted for currency effects, this corresponds to an increase in operating earnings of 24.7 percent. The operating earnings include revaluations of purchased debt portfolios amounting to SEK 3.7 M (-0.8).
• The operating margin was 26.4 percent (22.9).
• Net earnings for the quarter amounted to SEK 170.5 M (144.9) and earnings per share were SEK 2.14 (1.82).
• Disbursements for investments in purchased debt amounted to SEK 659.7 M (263.1), an increase of 150.7 percent.
• Cash flow from operating activities remains strong, amounting to SEK 543.3 M (428.1).

Comment by President and CEO Lars Wollung

For Intrum Justitia, 2011 is a good year, and development remained favorable in the third quarter. Adjusted for currency effects, operating earnings rose by 25 percent and the operating margin is strengthened with 3.5 percentage points compared to last year.

The ongoing European debt crisis is tangible in several of the countries in which Intrum Justitia operates, although we have yet to see any decline in recoverability of receivables in our operations. Thanks to rigorous market efforts and internal efficiency over the past year, we stand better equipped to cope with a continued deterioration in macroeconomic conditions, compared to the last financial crisis.

Our Credit Management service line continues its stable development and we are seeing favorable effects from our efficiency enhancement efforts of the past year. Our investments in taking more cases through the legal systems over the past year are giving the desired results and we are continuing to invest in Eastern Europe for example. At the same time, analyses are being carried out in additional countries where we operate, where such activities could benefit our business.

In the third quarter, we saw increased activity in purchased debt, both with regard to small and medium-sized portfolios, as well as larger portfolios. We are also seeing a continued positive trend with regard to integrated services that include so-called forward flow contracts. Investments made during the quarter amounted to SEK 660 M, and for the past 12 months, investments have totaled approximately SEK 1.7 billion. The return during the quarter was 19.1 percent. The opportunities to expand in purchased debt are favorable and a strong financial base is a prerequisite.

The Northern Europe region continues to develop well with an increase in currency-adjusted operating earnings by 29 percent and the margin strengthening to 31 percent. In the third quarter, we acquired Difko Inkasso in Denmark, further strengthening our position in the Danish market, particularly within Credit Management Services.

In the Central Europe region, currency-adjusted operating earnings rose by 14 percent in the third quarter, while the margin strengthened to 25 percent. The positive trend in the region is driven by strong development in purchased debt. The acquisition, for example, of a German purchased debt portfolio has been concluded and is contributing to positive development.

In the Western Europe region, currency-adjusted operating earnings rose by 18 percent and we can see that the trend from the first quarter with a strengthened operating margin is continuing, with the margin being 19 percent for the third quarter. Several of the countries in the region are affected by the European debt crisis, although there have yet to be any visible effects on our operations. Thanks to rigorous efforts on cost control and efficiency improvement, we are nonetheless seeing a positive trend in the region.

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.

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