Intrum presents Annual and Sustainability Report for 2018

Annual Report

For Intrum, 2018 was yet another eventful year with a continuous high activity on the non-performing loan market. For example, a strategic partnership with Italian Banco Intesa Sanpaolo was closed in April, with the transaction being closed in November as planned. Intrum expanded geographically as well during the year and established business in Brazil.

The core operations, credit management with focus on late payments and collection, continued to develop steadily, with increasing efficiency and synergies maintaining a good service line margin (27 percent). The integration between Intrum Justitia and Lindorff continued and most of the planned measures had been completed by the end of the year.
Having yielded good results, Intrum’s strategic focus on growth and efficiency, alongside digitisation and analysis, stands firm.

Over the coming year, we expect the implementation of our strategic plan to continue generating stable development, and we intend to be very selective in our investments.

Revenues by business area

• Credit management services with a focus on late payments and collection
  60% (2017, 62 %)
• Purchasing portfolio of overdue receivables
  40% (2017, 38 %)

Our financial targets for 2020 remain firm:

• Earnings per share:
  Target 35 SEK/share
• Return on purchased debt
  Target Outcome 13%
• Net debt in relation to operating earnings before depreciation and amortisation
  Target 2.5 to 3.5

Sustainability report

For the first time, Intrum’s Sustainability Report is included in the Annual Report.
Our sustainability efforts are rooted in our purpose: to lead the way to a sound economy. In a sound economy, companies are prospering and growing, while individuals in society have sufficient knowledge to be able to make informed decisions and achieve sustainable private finances. This in turn benefits society as a whole.

Three areas of sustainability that drive our work
Building on findings from dialogues that we have had with a range of our key stakeholders, we have identified three general areas that drive and strengthen our sustainability work forward.

We shall:

• Enable sustainable payments
• Be a trusted and respected actor
• Grow by making a difference

These areas form the foundation of our work to create value, they are closely related to our identity and we are integrating them into the day-to-day operations.

Our three focus areas incorporates the ten principles of the United Nations Global Compact, which Intrum has been a signatory of since 2016. Each focus area is also linked to selected Sustainable Development Goals (SDG’s) within the United Nation’s Agenda 2030 that we can make an important contribution to.