Intrum

• Continued expansion of Servicing margin and stable collections in Investing business, despite cyclically slow nature of quarter
• Progress on capital light strategy with five transactions agreed as part of the investment partnership with Cerberus
• Cost reduction programme on target and delivering meaningful impact
• Significant progress on recapitalisation having achieved overwhelming support from creditors; now focused on implementation of transaction

Andrés Rubio, President & CEO of Intrum AB said:

“I am pleased with the progress we have made this quarter in both the Servicing and Investment businesses and our cost reduction initiatives are delivering. We also received overwhelming support from creditors on our recapitalisation transaction, which will ensure we have a capital structure which is aligned with our long-term business plan. We remain committed to our capital-light strategy which enables us to scale our investment activity without increasing our debt, while benefitting from long term servicing and portfolio management revenue. We continue to be focused on deleveraging, further strengthening our market-leading position and achieving our financial targets for 2026.”

Key financial highlights, July-September 2024 (July-September 2023)

• Servicing adjusted EBIT increased by 45% vs. Q3 2023
• Servicing adjusted EBIT margin increased to 18% (+6% vs. Q3 of the previous year)
• External servicing income decreased 4%
• Positive Q3 organic growth in Servicing in Northern and Middle Europe of 4% and 3%, respectively
• Collection performance in Investing during the quarter of 98% and 106% vs. active and original forecast, respectively
• Investing cash income and cash EBITDA decreased 5% and 17% respectively vs. Q3 2023 primarily driven by lower investment pace, a natural consequence of the move to a capital light strategy
• New portfolio investments of SEK 311 M (SEK 531 M) at IRR of 20% (18%)
• Investing book-value stood at SEK 25.5 bn (38.8)
• Available liquidity at the end of the quarter was SEK 3.8 bn (8.9), driven by significant debt reduction
  

Third quarter figures in summary

• Income down 5% vs. Q3 2023 driven by decreases in both Investing and Servicing segments
• Adjusted EBIT for the quarter decreased to SEK 951 M vs. SEK 1,004 M in Q3 2023
• Adjusted costs in the third quarter amounted to SEK 3,279 M, an 8% decrease compared to SEK 3,549 M in the third quarter last year
• Realised cost savings of SEK 1.1 bn by the end of Q3 2024 and adj. cost-income ratio decreased 2% vs. Q3 2023
• Leverage ratio of 4.2x (4.4x). Up 0.3x vs. Q2 2024, driven by a reduction in RTM cash EBITDA following completion of the portfolio investment back-book sale
• Progress on several strategic initiatives including:
  • Meaningful progress on recapitalisation
  • Five transactions agreed as part of its investment partnership with Cerberus
  • Ambitious roll-out plan for Ophelos with initial deployment in Spain
    

Presentation of the interim report

Andrés Rubio, President & CEO, and Johan Åkerblom, CFO, 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 writing.

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.

For further information, please contact:

Investor Relations
Anders Bengtsson, Investor Relations Manager
ir@intrum.com

Förfrågningar från media
Kristin Andersson, External Communications Director
+46 70 585 78 18
kristin.andersson@intrum.com