Intrum AB – Interim results January-March 2024

• First quarter seasonally slow - in line with expectations and continued high commercial activity
• Adjusted Income and adjusted EBIT both up 8 percent vs. Q1 ’23, driven by M&A in Servicing, specifically in Middle and Southern Europe
• Leverage ratio flat at 4.4x, including 0.1x unfavourable FX movement
• Progressed on several strategic initiatives including: (i) Ophelos operational in the Netherlands, (ii) realised savings of SEK ~500 M in Q1 ’24 (out of the SEK 800 M implemented in 2023), and implementing measures to save an additional SEK ~700 M in 2024 and 2025 and (iii) debt capital realignment and front-book discussions ongoing

Financial results in brief, January-March 2024 (January-March 2023)

• Adjusted income increased to SEK 4,891 M (4,524)

• Adjusted EBIT increased to SEK 1,155 M (1,068)

• Cash EBITDA increased to SEK 2,782 M (2,728)

• External Servicing income growth of 16 per cent

• Servicing adjusted EBIT margin of 15 per cent RTM Q1 ‘24 (19)

• Investing book-value excluding revaluations stood at SEK 37 bn (37)

• Available liquidity at the end of the quarter was SEK 9 bn (17)

Presentation of the interim report
Andrés Rubio, President & CEO, and Emil Folkesson, Interim CFO and Investor Relations Director, will present the results and answer questions in a webcast with teleconference at 9:00 a.m. CET. The conference will be held in English.

If you wish to participate via webcast, please use this link. Via the webcast you are able to ask questions in written.

To participate via teleconference, please use this link. After registration you will be provided phone numbers and a conference ID to access the conference. Via the teleconference you can ask questions verbally.

Comment by President & CEO Andrés Rubio
“The seasonally slow first quarter is in line with expectations. During the quarter we continued to focus our efforts on achieving the goals presented at our Capital Markets Day: to become increasingly client-centric, capital-light while pursuing an operating model driven by technology and automation.

With continued inflation and need to improve margin, we continue to explore further cost-cutting measures. On top of the SEK 800 million run rate cost savings implemented in 2023, we have identified additional measures that will generate cost savings of approximately SEK 400 million in 2024 and an additional approximately SEK 300 SEK million in 2025. To date, we have realised approximately SEK 500 million of cost savings.

Intrum’s commercial activity continued to accelerate, with signed annual contract value (“ACV”) increasing 11 percent to SEK 278 million from SEK 251 in Q1 2023. Selected examples are: (i) a new contract with a major BNPL company in Norway, (ii) an increased mandate with EDF in France and (iii) a major consumer finance mandate in the UK.

Our Investing segment, recorded SEK 3,243 million in gross cash collections or 100 percent against the active forecast, which represents 109 percent of original underwriting forecast, demonstrating the resilience and strong cash generation of our back book.

During the last 12 months, Intrum helped 4.9 million customers to become debt free and collected SEK 120 billion of which SEK 14 billion on own portfolios. More broadly, we expect a continued high demand for Intrum’s services. NPL volumes have increased steadily throughout 2023, leading to a rise in NPL ratio to 1.9 percent at year end. A similar development is seen for Stage 2 loans, where the ratio in EU jumped to 9.7 percent in Q4 2023 from 9.2 percent in Q3, reaching the second highest reading since 2018.

In March, we launched Ophelos in the Netherlands – an important step on our journey towards operational excellence and ongoing tech transition. We will evaluate lessons learnt from this pilot in the Netherlands and introduce Ophelos in at least two additional markets during 2024.

In addition, I am delighted to announce the recruitment of our incoming CFO, Johan Åkerblom, and I look forward to welcoming him later in 2024. I am eager to continue our transformation journey with all of my outstanding colleagues at Intrum.”

For further information, please contact:
Emil Folkesson, Interim CFO and Investor Relations Director
ir@intrum.com

This information is information that Intrum AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 24 March 2024 at 07.00 CET.

Intrum is the industry-leading provider of Credit Management Services with a presence in 20 markets in Europe. By helping companies to get paid and support people with their late payments, Intrum leads the way to a sound economy and plays a critical role in society at large. Intrum has circa 10,000 dedicated professionals who serve around 80,000 companies across Europe. In 2023, revenues amounted to SEK 20.0 billion. Intrum is headquartered in Stockholm, Sweden and publicly listed on the Nasdaq Stockholm exchange. For more information, please visit www.intrum.com.