Interim Report January-June 2020

· Faster recovery than expected and tight cost control · Stable earnings and strong cash flow · Positive development in Strategic Markets

Second quarter, January-June 2020:

  • Consolidated net revenues amounted to SEK 3,885M (3,784).
  • EBIT amounted to SEK 1,348M (1,475). Items affecting comparability totalled SEK 3M (-86).
  • Cash flow from operating activities was strong and increased by 53 per cent to SEK 2,899M (1,897). Cash EBITDA amounted to SEK 2,709M (2,670), corresponding to 1 per cent year-on-year increase.
  • The leverage ratio fell to 4.4x (4.5) end of quarter, supported by strong operating cash flow generation while dividends and share buybacks reduced the cash flow by SEK 2.6 billion.
  • Available liquidity at the end of the quarter was SEK 11 billion.
  • Portfolio Investments amounted to SEK 1.3 billion SEK (1.4) in the quarter, with a substantially better than expected return level compared to both before Covid-19 and the first quarter of 2020.

Comment by President and CEO Mikael Ericson:

Thanks to the successful operational changes and adjustments as the pandemic broke out, as well as tight cost control, we have been able to support our clients effectively throughout the first six months of the year. The reopening of societies, in southern Europe in particular, has contributed positively, while collections in our Portfolio Investments performed stronger than our forecast.

Group cash collections amounted to 111 per cent of our Covid-19-adjusted forecast and 92 per cent of our forecast made prior to Covid-19. This stability highlights the benefits of having a diversified business in 25 countries, and the resilience of our business model where around 85 per cent of collected amounts in our loan portfolios are generated from automated and online payments, respectively.

For further information, please contact:
Viktor Lindeberg, Head of Investor Relations & Group Business Control
+46 76 897 07 08

+46 8 546 102 02

Anna Fall, Chief Brand & Communications Officer
+46 70 996 98 21

This press release contains information that Intrum AB (publ) is obliged to make public pursuant to the Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:00 CET on July 23, 2020.