Growing markets
Our clients at Intrum Justitia's are expanding geographically and improving efficiencies in their business processes. A growing number of them are realizing the value of hiring a professional partner to handle every element of the credit management chain.90 percent of the market is still untapped
There are several important trends in the CMS market.
- Credit management as traditionally handled in-house by companies is being outsourced to specialists like Intrum Justitia. Today approximately 10 percent of the market is outsourced, according to our calculations.
- Payment delays are increasing, forcing European companies to finance the equivalent of EUR 250 billion in credit.
- Many industries are deregulating, including financial services, telecommunications, energy and health care. Deregulation increases competition and means that more invoices are produced. It also means that companies must have the tools and knowledge to take greater risks and make faster credit decisions.
Great potential
The European CMS market differs by country. In general, countries in northwestern Europe are more mature and hire outside specialists, while markets in southern Europe have a lower level of outsourcing and greater payment risks.
We estimate the total value of the outsourced market in Europe at SEK 30 billion. If outsourcing in Germany, France and the UK were to increase to 25 percent, the market would grow by about SEK 20-25 billion. That kind of growth offers Intrum Justitia great potential.
Banking and finance is major client group
Intrum Justitia has over 90,000 clients in 22 European markets. Our largest segments are banking and finance, telecom and utilities. The latter are expected to grow in pace with deregulation in several European markets.
The 150 largest clients together account for about 40 percent of the Group's revenues. No single client accounted for more than 2 percent in 2008.
There are good opportunities to expand the client base and offer existing clients a broader range of services when considering the aggregate value of unpaid invoices today and that the average late payment in Europe is 17 days, according to our annual survey, the European Payment Index (EPI).
