Presentation of Intrum’s results for October-December 2022

• Report Q422 Eng
• Report Q422 Sv
• Press release Q4
• Presentation Q4

• Audiocast

Comment by President & CEO Andrés Rubio

“Our performance during 2022, particularly the fourth quarter, has showcased Intrum’s strengths in a challenging macroeconomic environment. Our multi-market integrated business model has enabled us to significantly grow cash revenues, up 11 per cent and 12 per cent, as well as cash EBITDA, up 8 per cent and 2 per cent, year on year and quarter on quarter, respectively.

In Credit Management Services, we have made significant progress with our clients and won new servicing contracts with a 36 per cent higher annual value compared to 2021. Some of the largest deals included Sainsbury’s Bank in the UK, Credit Agricole Italy and Vattenfall in Sweden. CMS has also been consistently challenging during the year, as the segment has not yet seen material increases in higher value or in higher margin financial services inflows. In parallel, costs have increased due to higher levels of activity required to maintain revenues, given efforts to collect and increasing inflows of lower value, lower margin invoices.

Portfolio Investments and Strategic Markets have both contributed positively, where Portfolio Investments delivered strong underlying collection outperformance. In line with previous guidance, we have moderated our investment pace with SEK 7.5 bn deployed in 2022 at increasing returns. Strategic Markets delivered a consistently strong trajectory throughout the year with Greece and Italy outperforming relative to expectations and relative to other markets.

Costs overall have also been impacted by our efforts to support ONE Intrum transformation as well as building and enhancing commercial and data and analytics capabilities. The transformation program has so far resulted in a global operating model and operational hubs. We are establishing simpler, more data-driven business processes and have converted portfolios from multiple countries to a global collection system.

Our long-term strategic priorities remain unchanged – profitable growth and improved effectiveness and efficiency. Our key themes for the long-term development are simplify and focus as well as grow and transform. In 2023 we will therefore pursue a number of specific initiatives.

• Organisation and footprint: We will focus on two businesses – Servicing and Investing – where our footprint is characterised by Franchise markets across Northern, Middle and Southern Europe and investment-dominated Tactical markets predominantly in Eastern Europe.
• Value-chain extension: In our Franchise markets we want to expand our product capabilities in line with clients’ evolving needs, including early stage solutions as well as secured and real estate services.
• Client and customer-centric approach: We will continue to harmonise our technology platform, focusing on increasing the efficiency and effectiveness of client and customer touchpoints.
• Capital partnership: To significantly increase overall portfolio investments as well as the asset base for our servicing platform, we will explore opportunities to establish a balance-sheet-light capital partnership, where a financial partner complements our Investing activities.

I am excited and privileged to have been entrusted with the challenge to lead Intrum through its next chapter as President and CEO. Intrum has a very solid foundation with many strengths, and I see substantial opportunities for further commercial development and organisational improvement ahead. We look forward to detailing the themes and initiatives, with associated trajectory and targets, on a Capital Markets Day during the second quarter.”