Intrum — Earnings Release 2023

Jan 25, 2024

Year end report

Fourth quarter 2023 highlights

• Seasonally strong end to a transitory year
• Income flat vs. strong Q4'22 and up 3% vs. FY '22
• EBIT for the year increased to SEK 4,364 M vs. SEK 154 M in 2022 (inclusive of the JV write down in 2022)
• EBIT includes SEK 541 M for the FY'23 in respect of costs to execute the cost saving program
• Adjusted Income was up 8% vs. Q4'22 and 5% vs. FY'22 primarily driven by M&A activity in our Servicing segment
• Adjusted EBIT reduced by 1% vs. Q4'22 and 13% vs. FY'22 driven by cost growth in excess of income
• Leverage ratio flat at 4.4x (including 0.1x favourable FX movements) and net debt declined by SEK 1.7 bn despite paying the final installment of the 2022 dividend and M&A activity
• Progressed on several strategic initiatives: (i) agreed a deal to sell portion of Investment portfolio to Cerberus, (ii) exiting selected markets and (iii) achieved announced savings of SEK ~800 M on a run-rate basis
• Board of Directors of Intrum AB do not intend to propose to the next Annual General Meeting any dividend payable in 2024

Fourth quarter, 2023 Fourth quarter Full year

	Oct–Dec	Oct–Dec	Change			Change
SEK M, unless otherwise indicated	2023	2022	%	2023	2022	%
Unadjusted Accounting Metrics
Income	5,540	5,542	0	20,000	19,368	3
EBITDA	2,180	-602	462	5,907	2,192	170
EBIT	1,646	-1,155	242	4,364	154	2,761
Net Income/(Loss) attributable to Parent company's shareholders	187	-3,633	105	-188	-4,473	95
Earnings/(Loss) Per Share, SEK	1.56	-30.14	105	-1.56	-37.07	95
Adjusted Accounting Metrics
Adjusted Income	5,540	5,134	8	20,000	18,960	5
Adjusted EBITDA	2,298	2,292	0	7,219	8,117	-11
Adjusted EBIT	1,899	1,927	-1	5,786	6,664	-13
Adjusted Net Income/(Loss) attributable to Parent company's shareholders	345	-331	204	1,114	1,834	-39
Adjusted Earnings/(Loss) Per Share, SEK	2.87	-2.75	204	9.24	15.21	-39
Adjusted Cash Metrics
Cash Income	6,966	6,686	4	25,385	24,280	5
Cash EBITDA	3,732	3,786	-1	12,854	13,238	-3
Investing Segment: Capex Deployed	532	1,277	-58	5,508	7,538	-27
Cash EBITDA (proforma)				13,001
Net Debt before Other Obligations/RTM Cash EBITDA (proforma), x				4.4x	4.1x

Eventful and challenging 2023 with clear direction into 2024

Reflecting on my first full calendar year as President and CEO for Intrum, 2023 was characterised by serious external challenges and important internal transformational steps. It was a year of management changes, strategic change and specific measures to drive our long-term success. Our Strategic direction, as presented at our Capital Markets Day in September, is to Simplify & Focus plus Grow & Transform our franchise, to become a capital light and client centric platform with a continuous improvement culture to ensure best in class operations. In 2023, and the beginning of 2024, we have taken significant steps towards this goal, and I am confident that we are on the right track to deliver on our strategy as the leader within credit management services.

2023 challenges impacting collection environment

With increased costs of living, many Europeans are struggling to make ends meet and require pay rises plus utilising credit to bridge spending gaps. At the same time, European SMEs are spending an enormous amounts and time on collecting late payments. The tougher collection environment in 2023 increased the level of activity required and therefore costs to achieve the same amount of collections. This further highlights the importance of delivering on our strategic agenda and focusing on initiatives aligned with the three pillars: operational excellence, client focus, and capital light.

Asset sale to enhance liquidity and manage debt maturities in 2024 and 2025

With the transaction announced earlier this week, we delivered on an important milestone in our tactical agenda to de-risk and reduce the absolute debt quantum on our balance sheet. The transaction consists of ~10,000 portfolios across 13 jurisdictions which is a fair representation of our total back book. At closing we expect to receive SEK 8.2 billion in net proceeds, which will be used in full to repay debt. This meaningfully increases liquidity position and enhance our ability to meet our maturing debt in 2024 and 2025 without relying on access to the debt capital markets.

More importantly, this deal deepens our already strong relationship with Cerberus, a leading investor in the field and one of our largest clients, and accelerates our development into a leading client service entity with a capital light investment business.

A seasonally stronger quarter in a transitory year

Adjusted Income was up eight percent in the quarter and five percent for the year to SEK 5,540 M (5,134) and SEK 20,000 M (18,960) respectively. Despite increased margin in the fourth quarter, we do need to continue to address the profitability of the full platform. Cash EBITDA as well as Adjusted EBIT was down one percent to SEK 3,732 M (3,786) and SEK 1,899 M (1,927) respectively.

By the end of 2023, we achieved most of the SEK 800 M run rate cost savings. We expect not only to exceed the SEK 800 M target in 2024 but also execute additional cost-cutting with additional measures which are necessary in the current inflationary environment.

Despite paying the last instalment of our 2022 dividend and closing acquisition of e-Collect, our net leverage declined by nearly SEK 2 billion and the leverage ratio (Net debt before other obligations/RTM Cash EBITDA) stayed at 4.4x (Q3'23: 4.4x), with ratio positively impacted from FX by ~0.1x. Pro forma for the expected liquidity from the announced asset sale our leverage decreases to SEK 49.1 billion, an approximate year end net debt figure last reported in 2020.

Continued commercial success

In the weaker economic environment, our services are needed more than ever, which was evident throughout the year by the

"We have taken significant steps towards our goal, and I am confident that we are on the right track to deliver on our strategy as the leader within credit management services"

high commercial activity level experienced by our Servicing segment. We reached an all-time high volume of new contracts, well above the target for the year. During 2023, we signed annual contract value ("ACV") of SEK 1,405 M (901) with higher margins across all our regions as clients recognise the value and quality of the services we provide. For example, during the quarter we won a large contract with Lyse AS and TF Bank in Norway and two large wins from financial sector in UK thanks to our comprehensive understanding of the clients' need and the value we create.

External Servicing Income increased by 17 percent in the quarter and 10 percent for the full year, mainly driven by acquisitions, amounting to SEK 3,918 M (3,631) and SEK 13,962 (13,088) M, respectively. However, the impact of elevated costs is visible with profit margins down four and five percentage points for the quarter and year, respectively. Servicing EBIT margin in the fourth quarter came in at 23 percent (27) and 16 percent (21) for the year.

Extracting cash and pivoting into a capital light Investing business

In our Investing segment we tactically moderated the investment pace during 2023, which was later underpinned by the strategy launched at the Capital Markets Day to extract cash and transform to a capital light business model. During the year we deployed SEK 5,508 M (7,538) at 16 percent (13) expected return. The fourth quarter's investments amounted to SEK 532 M (1,277) at 19 percent (16) expected return.

Cash EBITDA and adjusted ROI came in at SEK 10,810 M (10,528)

and 14 percent (14) for full year 2023, and SEK 2,734 M (2,861) and 14 (15) percent in the fourth quarter.

When cost of living increases and consumer's confidence falls, the collectability of our portfolios is clearly impacted. Despite this we collected 102 percent (108) of the active forecast during the year and 103 percent (111) in the quarter, which is indeed a testament to the resilience in our back book.

Eventful 2023 with a clear direction going into 2024

2023 was a year of change to lay the foundation for a stronger franchise built around our three strategic pillars: Operational Excellence, Client Focus and Capital Light. During the year we have increased our focus and accountability within the management group. We have taken important steps to improve our client centricity and seeded the foundation to more efficiently allocate capital and reduce our balance sheet intensity.

There is much more to be done and important measures to implement during 2024. I am thrilled and excited to continue the journey we have embarked upon and would also like to thank all our employees for a stellar effort during a challenging and transformational year.

Stockholm, January 2024

Andrés Rubio President & CEO "There is much more to be done and important measures to implement during 2024 and I am thrilled and excited to continue the journey we have embarked upon"

Key financial metrics

Quarterly development

EBIT for the quarter increased to SEK 1,646 M (-1,155) vs. Q4'22 due to the impact of the JV write down in 2022. Adjusted EBIT decreased 1% to SEK 1,899 M (1,927) for the quarter and reduced 13% to SEK 5,786 M (6,664) for the year due to increased costs in excess of increased income.

The challenging collection environment in 2023 meant that the level of activity required to achieve the same amount of collections as in previous years was higher. This can be seen in the increase in Direct Costs and Indirect Costs totalling SEK 3,951 M for the quarter and SEK 15,718 M for the year. Increased costs have predominantly been driven by M&A activity and Items Affecting Comparability relating to the cost saving program (SEK 541 M for the year) and IT transformation (SEK 308 M for the year). Underlying costs, excluding Items Affecting Comparability, have increased 11% to SEK 3,716 M (3,339) and 12% to SEK 14,373 M (12,841) for the quarter and the year respectively primarily driven by M&A. The cost saving program, which to date has achieved run-rate savings of SEK ~800 M, will primarily focus on adjusted costs that are not directly driving income and will benefit our 2024 results.

In Servicing, new case inflows and assets under management continue to grow with new ACV signings of SEK 303 M in the quarter bringing ACV signings for the year to a record SEK 1,405 M. External Servicing Income for the quarter has benefited significantly from M&A activity increasing Servicing Income by 23% compared to the same quarter last year. However, Servicing Adjusted Margin for the quarter reduced to 23% (27) driven by cost growth in excess of income. Portfolio Investments performance for the quarter came in above expectation at 103% (111) of active forecast with an Adjusted ROI of 14% (15).

The leverage ratio remained flat at 4.4x compared to the previous quarter including 0.1x favourable FX movements despite paying the final installment of the 2022 dividend and M&A activity.

Segment overview

Key figures, 2023

		Fourth quarter, Oct–Dec 2023					Full year, 2023
SEK M	Servicing	Investing	Central	Eliminations	Consolidated	Servicing	Investing	Central	Eliminations	Consolidated
External Income	3,415	2,114	10	-	5,540	11,444	8,545	12	-	20,000
Internal Income	502	-	93	-595	-	2,518	-	232	-2,750	-
Income1	3,918	2,114	103	-595	5,540	13,962	8,545	243	-2,750	20,000
Items Affecting Comparability in Income3	-	-	-	-	-	-	-	-	-	-
Adjusted Income	3,918	2,114	103	-595	5,540	13,962	8,545	243	-2,750	20,000
Direct Costs	-2,373	-832	-54	572	-2,687	-8,881	-3,294	-234	2,701	-9,708
Indirect Costs	-1,175	-65	-46	23	-1,264	-3,732	-356	-1,971	49	-6,010
Share of Associates and Joint Ventures	8	47	-	-	55	21	53	-	-	74
Net Credit Gains / (Losses)	-	2	-	-	2	-	9	-	-	9
EBIT2	378	1,265	3	-	1,646	1,370	4,956	-1,962	-	4,364
Items Affecting Comparability in EBIT3	515	26	-287	-	253	821	191	410	-	1,422
Adjusted EBIT	893	1,291	-284	-	1,899	2,191	5,147	-1,551	-	5,786
Cash Income	3,918	3,540	103	-595	6,966	13,962	13,930	243	-2,750	25,385
Cash EBITDA	1,234	2,734	-236	-	3,732	3,409	10,810	-1,365	-	12,854
Adjusted Income	3,918	2,114	103	-595	5,540	13,962	8,545	243	-2,750	20,000
– thereof Northern Europe	662	397	-	-89	971	2,736	1,692	-	-384	4,044
– thereof Middle Europe	860	644	-	-108	1,396	3,429	2,502	-	-847	5,083
– thereof Southern Europe	2,218	604	-	-167	2,655	7,047	2,444	-	-702	8,789
– thereof Tactical Markets	177	469	-	-139	508	750	1,908	-	-585	2,073
– thereof Central	-	-	103	-93	10	-	-	243	-232	12
Adjusted EBIT	893	1,291	-284	-	1,899	2,191	5,147	-1,551	-	5,786
– thereof Northern Europe	30	292	-	-	321	200	1,213	-	-	1,413
– thereof Middle Europe	75	343	-	-	418	196	1,313	-	-	1,509
– thereof Southern Europe	785	410	-	-	1,195	1,883	1,598	-	-	3,482
– thereof Tactical Markets	4	245	-	-	249	-88	1,023	-	-	935
– thereof Central	-	-	-284	-	-284	-	-	-1,551	-	-1,551

1) Income of SEK 5,540 M for Q4'23 and SEK 20,000 M for the 12 month period ended 31 December 2023 includes SEK 16 M and SEK 147 M related to

discontinued operations for Q4'23 and the 12 month period ended 31 December 2023, respectively

2) EBIT of SEK 1,646 M for Q4'23 and SEK 4,364 M for the 12 month period ended 31 December 2023 includes SEK 0 M and SEK 10 M related to the discontinued

operations for Q4'23 and the 12 month period ended 31 December 2023, respectively

3) Refer to page 10 for details on Items Affecting Comparability

Key figures, 2022

	Fourth quarter, Oct–Dec 2022					Full year, 2022
SEK M	Servicing	Investing	Central	Eliminations	Consolidated	Servicing	Investing	Central	Eliminations	Consolidated
External Income	2,929	2,613	-	-	5,542	10,424	8,944	-	-	19,368
Internal Income	702	-	19	-721	-	2,664	-	94	-2,758	-
Income1	3,631	2,613	19	-721	5,542	13,088	8,944	94	-2,758	19,368
Items Affecting Comparability in Income	-	-408	-	-	-408	-	-408	-	-	-408
Adjusted Income	3,631	2,205	19	-721	5,134	13,088	8,536	94	-2,758	18,960
Direct Costs	-2,263	-835	-41	737	-2,402	-8,543	-3,246	-89	2,774	-9,104
Indirect Costs	-768	-142	-414	-17	-1,341	-2,900	-528	-1,561	-17	-5,005
Share of Associates and Joint Ventures	10	-2,980	-	-	-2,970	24	-5,246	-	-	-5,223
Net Credit Gains / (Losses)	-	15	-	-	15	-	117	-	-	116
EBIT2	610	-1,329	-436	-	-1,155	1,669	42	-1,556	-	153
Items Affecting Comparability in EBIT	363	2,687	32		3,082	1,065	5,333	112	-	6,510
Adjusted EBIT	973	1,358	-404	-	1,927	2,734	5,374	-1,444	-	6,664
Cash Income	3,631	3,757	19	-721	6,686	13,087	13,857	94	-2,758	24,280
Cash EBITDA	1,283	2,861	-354	-	3,786	3,983	10,528	-1,269	-	13,238
Adjusted Income	3,631	2,205	19	-721	5,134	13,087	8,536	19	-2,682	18,960
– thereof Northern Europe	694	425	-	-99	1,020	2,669	1,826	-	-424	4,071
– thereof Middle Europe	755	616	-	-262	1,108	2,835	2,530	-	-1,023	4,341
– thereof Southern Europe	1,999	771	-	-195	2,575	6,873	2,440	-	-624	8,689
– thereof Tactical Markets	183	393	-	-145	431	710	1,740	-	-591	1,859
– thereof Central	-	-	19	-19	-	-	-	19	-19	-
Adjusted EBIT	973	1,358	-404	-	1,927	2,732	5,375	-1,444	-	6,664
– thereof Northern Europe	61	293	-	-	353	415	1,296	-	-	1,711
– thereof Middle Europe	69	317	-	-	386	249	1,307	-	-	1,556
– thereof Southern Europe	891	556	-	-	1,447	2,300	1,893	-	-	4,193
– thereof Tactical Markets	-48	192	-	-	145	-233	879	-	-	647
– thereof Central	-	-	-404	-	-404	-	-	-1,444	-	-1,444

1) Income of SEK 5,542 M for Q4'22 and SEK 19,368 M for the 12 month period ended 31 December 2022 includes SEK 57 M and SEK 237 M related to

discontinued operations for Q4'22 and the 12 month period ended 31 December 2022, respectively

2) EBIT of SEK -1,155 M for Q4'22 and SEK 153 M for the 12 month period ended 31 December 2022 includes SEK 14 M and SEK 86 M related to discontinued

operations for Q4'22 and the 12 month period ended 31 December 2022, respectively

Servicing

Credit management with a focus on late payments and collections.

		Fourth quarter	Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2023	2022	%	2023	2022	%
External Income	3,415	2,929	17	11,444	10,424	10
Internal Income	502	702	-28	2,518	2,664	-5
Income	3,918	3,631	8	13,962	13,088	7
Items Affecting Comparability in Income	-	-	-	-	-	-
Adjusted Income	3,918	3,631	8	13,962	13,088	7
Direct Costs	-2,373	-2,263	-5	-8,881	-8,543	-4
Indirect Costs	-1,175	-768	-53	-3,732	-2,900	-29
Share of Associates and Joint Ventures	8	10	-21	21	24	-13
EBIT	378	610	-38	1,370	1,669	-18
Items Affecting Comparability in EBIT	515	363	42	821	1,065	-23
Adjusted EBIT	893	973	-8	2,191	2,734	-20
Cash Income	3,918	3,631	8	13,962	13,087	7
Cash EBITDA	1,234	1,283	-4	3,409	3,983	-14
KPIs
Change in Adjusted Income, %	17	3	14ppt	10	7	3ppt
– thereof organic growth	-10	-5	-5ppt	-6	2	-8ppt
– thereof acquisitions	23	0	23ppt	9	-	9ppt
– thereof foreign exchange	4	7	-3ppt	6	5	1ppt
Adjusted EBIT Margin	23	27	-4ppt	16	21	-5ppt
Capex Deployed	89	69	29	206	146	42

In Q4'23, we see the full impact of our acquisitions during the course of the year. This combined with our commercial success is visible in External Income which at SEK 3,415 M for the quarter and SEK 11,444 M for the year is up 17% and 10% respectively vs. the same period last year. The increase in External Income is partially offset by a reduction in Internal Income as we deliver on our strategy to reduce our proprietary investing book value from which Internal Income is generated.

In total, Servicing Income for the quarter increased 8% to SEK 3,918 M (3,631) vs. Q4'22 and by 7% for the year to SEK 13,962 M (13,088) vs. 2022.

We are also seeing higher margins in new signings when compared to existing stock which will further benefit 2024.

Servicing EBIT decreased 38% to SEK 378 M (610) and 18% to SEK 1,370 M (1,669) for the quarter and year respectively vs. the same period last year.

During 2023, our costs increased in excess of our income growth resulting in Adjusted EBIT down 8% to SEK 893 M (973) for the quarter and 20% to SEK 2,191 M (2,734) for the year.

Direct Costs increased by 5% vs. Q4'22 and 4% vs. 2022. This does represent a reduction in direct costs as a percentage of Income compared to the previous year but is also inflated by the challenging collection environment, where a higher level of activity is required to achieve the same amount of collecitons as in previous years and also inflation.

The main driver of increased Servicing Costs was in Indirect Costs which have increased by 53% to SEK 1,175 M (768) in the

quarter and by 29% to SEK 3,732 M (2,900) for the year, materially driven by execution costs in respect of the cost savings program (SEK ~230 M for the year) and new acquisitions which also drives income growth.

Investing

Intrum invests in portfolios of overdue receivables and similar claims, after which Intrum's servicing operations collect on the claims acquired.

		Fourth quarter		Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2023	2022	%	2023	2022	%
Income	2,114	2,613	-19	8,545	8,944	-4
Items Affecting Comparability in Income	-	-408	n.m	-	-408	n.m
Adjusted Income	2,114	2,205	-4	8,545	8,536	0
– thereof REOs	49	65	-25	140	192	-27
–thereof Other Income	0	-94	105	20	103	-81
Direct Costs	-832	-835	0	-3,294	-3,246	-1
Indirect Costs	-65	-142	54	-356	-528	33
Share of Associates and Joint Ventures	47	-2,980	102	53	-5,246	101
Net Credit Gains / (Losses)	2	15	-89	9	117	-92
EBIT	1,265	-1,329	195	4,956	42	12,008
Items Affecting Comparability in EBIT	26	2,687	-99	191	5,333	-96
Adjusted EBIT	1,291	1,358	-5	5,147	5,374	-4
– thereof REOs	-5	17	-127	-27	32	-184
–thereof Other ncome	1	136	-99	3	622	-100
Cash Income	3,540	3,757	-6	13,930	13,857	1
Cash EBITDA	2,734	2,861	-4	10,810	10,528	3
KPIs
Internal Gross Collections	3,487	3,652	-5	13,748	13,426	2
Amortisation %	41	43	-2	39	40	0
Capex Deployed	532	1,277	-58	5,508	7,538	-27
ERC	76,058	77,634	-2	76,058	77,634	-2
Collection Index vs. Active Forecast	103	111	-8ppt	102	108	-6ppt
Book Value	36,585	37,109	-1	36,585	37,109	-1
Adjusted Return on Portfolio Investments %	14	15	-1ppt	14	14	-

Cash EBITDA, Full year

Northern Europe: 2,389 Middle Europe: 3,260

Southern Europe: 3,070

Tactical markets: 2,091

Collection performance was above expectations at 103% of active forecast for the quarter and at 102% of active forecast for the year. Adjusted ROI was 14% (15) for the quarter and 14% (14) for the year.

During the quarter, we invested SEK 532 M (1,277) in new portfolios with a net IRR of 19%. Q4'23 investments were predominantly as a result of forward flow commitments across our footprint. Cash Income came in at SEK 3,540 M (3,757), a decrease of 6% compared to the same quarter last year. Cash EBITDA for the segment was SEK 2,734 M (2,861) and Adjusted EBIT was SEK 1,291 M (1,358), down 4% and 5%, respectively, compared to the same quarter last year.

For the year, Cash EBITDA was SEK 10,810 M (10,528) and Adjusted EBIT was SEK 5,147 M (5,374), up 3% and down 4%, respectively, compared to last year.

Our Book Value decreased to SEK 36,585 M from SEK 38,785 M last quarter due to new investments below replenishment capex and the divestment of our portfolios in Romania. This is aligned with our overall strategy to reduce our proprietary investing book value.

Adjusted 5 year financial overview

Adjusted P&L

		Fourth quarter
	Oct–Dec	Oct–Dec
SEK M	2023	2022	2023	2022	2021	2020	2019
Adjusted Income	5,540	5,134	20,000	18,960	17,655	16,730	15,779
Adjusted Direct Costs	-2,500	-2,138	-9,350	-8,317	-7,910	-7,908	-7,674
– thereof personnel	-1,243	-1,090	-4,930	-4,086	-3,968	-3,923	-3,615
– thereof non-personnel	-1,257	-1,049	-4,420	-4,231	-3,942	-3,985	-4,059
Adjusted Indirect Costs	-1,216	-1,201	-5,024	-4,524	-3,312	-3,389	-3,076
– thereof personnel	-551	-578	-2,376	-2,097	-1,617	-1,511	-1,601
– thereof non-personnel	-665	-623	-2,648	-2,427	-1,695	-1,878	-1,475
Adjusted Share of Associates and Joint Ventures	76	132	161	545	581	306	1,179
Adjusted EBIT	1,899	1,927	5,786	6,664	7,014	5,739	6,208
Adjusted D&A	399	365	1,432	1,453	1,318	1,529	1,246
Adjusted EBITDA	2,298	2,292	7,219	8,117	8,332	7,268	7,454
Adjusted Financial Items	-823	-766	-3,478	-2,409	-2,174	-2,062	-1,921
Adjusted Tax	-569	-662	-861	-1,129	-910	-555	-424
Adjusted Net Income	507	499	1,448	3,126	3,930	3,122	3,863
Adjusted Net Income attributable to Parent company's shareholders	345	-331	1,114	1,835	3,487	2,689	2,797
Average number of shares outstanding	121	121	121	121	121	124	131
Adjusted EPS, SEK	2.87	-2.75	9.24	15.21	28.86	21.70	21.34
Adjusted EBITDA	2,298	2,292	7,219	8,117	8,332	7,268	7,454
Amortisation of Portfolio Investments	1,426	1,552	5,385	5,320	4,311	4,308	4,183
Income from Associates and Joint Ventures	-76	-132	-161	-545	-581	-306	-1,179
Cash from Associates and Joint Ventures	83	73	412	347	248	338	197
Cash EBITDA	3,732	3,786	12,854	13,238	12,310	11,608	10,655
Proforma adjustments in respect of M&A			146
Cash EBITDA (proforma)			13,001

Net Debt Reconciliation

	Fourth quarter Full year
	Oct–Dec	Oct–Dec
SEK M	2023	2022	2023	2022	2021	2020	2019
Borrowings	59,852	56,519	59,852	56,519	52,501	48,703	50,625
Lease Liability	637	712	637	712	805	871	917
Deferred Liabilities	348	384	348	384	406	1,073	926
Gross Debt	60,837	57,615	60,837	57,615	53,713	50,647	52,468
Cash and Cash Equivalents	-3,966	-3,474	-3,966	-3,474	-4,553	-2,134	-1,906
Net Debt before Other Obligations	56,871	54,141	56,871	54,141	49,160	48,513	50,562
Net Defined Benefit Liability	142	141	142	141	329	381	387
Payable to Non-controlling Interest	330	397	330	397	430	-	-
Net Debt after Other Obligations	57,342	54,678	57,342	54,678	49,919	48,894	50,949
Net Debt before Other Obligations/RTM cash EBITDA (proforma)	4.4	4.1	4.4	4.1	4.0	4.2	4.7

Reconciliation

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2023	2022	2023	2022
INCOME RECONCILIATION
Income	5,540	5,542	20,000	19,368
IACs in Income	0	-408	0	-408
Adjusted Income	5,540	5,134	20,000	18,960
Portfolio Amortisation	1,426	1,552	5,385	5,320
Cash Income	6,966	6,686	25,385	24,280
EBITDA RECONCILIATION
EBIT	1,646	-1,155	4,364	154
Depreciation and Amortisation	534	553	1,543	2,038
EBITDA	2,180	-602	5,907	2,192
IAC - NCIs
Impairments / (Reversals)	44	3,102	124	5,768
Net Credit Gains/(Losses)	-2	-15	-9	-117
- thereof Portfolio Investment Gains	-198	-545	-1,258	-1,795
- thereof Portfolio Investment Losses	197	530	1,249	1,678
IAC - Restructuring
IT Transformational Costs	65	160	308	512
Merger & Acquisition	57	11	88	11
Group Restructuring	-45	-585	676	-583
- therof cost saving program	-42	-	541	-
IAC - NRIs
Hungarian Tax Effects	-	-	90	74
Other	-	222	35	260
Adjusted EBITDA	2,298	2,292	7,219	8,117
JV Cash Adjustments
IFRS Earnings	-76	-132	-161	-545
Cash Earnings	83	73	412	347
Portfolio Amortisation	1,426	1552	5,385	5,320
Cash EBITDA	3,732	3,786	12,854	13,238
EPS RECONCILIATION
Earnings Per Share, SEK	1.56	-30.14	-1.56	-37.07
IACs in EPS
Impairments / (Reversals)	0.37	25.73	1.03	47.81
Other Operating (Gains) / Losses	0.95	1.66	9.77	4.47
Adjusted Earnings Per Share, SEK	2.87	-2.75	9.24	15.21

Group overview

Yearly overview, Group

SEK M	2023	2022	2021	2020	2019
Income	20,000	19,368	17,655	16,880	15,957
EBIT	4,364	154	6,475	4,695	2,060
Net Income/(Loss) attributable to Parent	-188	-4,473	3,127	1,881	-362
company's shareholders
Earnings Per Share, SEK	-1.56	-37.07	28.88	15.18	-2.76
Adjusted Income	20,000	18,960	17,655	16,730	15,779
Adjusted EBIT	5,786	6,664	7,014	5,739	6,208
Adjusted Net Income/(Loss) attributable to Parent	1,114	1,835	3,487	2,689	2,797
company's shareholders
Adjusted Earnings Per Share, SEK	9.24	15.21	28.86	21.70	21.34
Return on equity, %	-1	-22	15	9	-2
Equity per share, SEK	138.89	153.68	183.33	154.28	168.12
Average number of employees (FTEs)	10,641	9,965	9,694	9,379	8,766

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2023	2023	2023	2023	2022	2022	2022	2022
Income	5,540	4,959	4,978	4,524	5,542	4,530	4,825	4,471
EBIT	1,646	509	1,291	919	-1,153	-1,576	1,561	1,323
Net Income/(Loss) attributable to Parent company's shareholders	187	-411	14	23	-3,633	-2,055	663	553
Earnings Per Share, SEK	1.56	-3.41	0.11	0.19	-30.14	-17.05	5.50	4.57
Adjusted Income	5,540	4,959	4,978	4,524	5,134	4,530	4,825	4,471
Adjusted EBIT	1,899	1,353	1,468	1,068	1,928	1,564	1,701	1,471
Adjusted Net Income/(Loss) attributable to Parent company's shareholders	507	222	136	133	-330	761	758	646
Adjusted Earnings Per Share, SEK	2.87	1.84	1.12	1.10	-2.74	6.31	6.28	5.34
Return on equity, %	-1	-21	-30	-27	-23	1	12	13
Equity per share, SEK	138.89	152.11	160.83	154.58	153.81	172.39	186.20	188.25
Number of employees (FTEs)	11,099	11,066	10,907	10,240	10,238	10,054	9,920	9,750

Quarterly overview, Group

Regional Overview

Quarterly

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2023	2023	2023	2023	2022	2022	2022	2022
Northern Europe
External Income	971	1,035	1,056	981	1020	1,038	1,057	957
Internal Income	89	103	102	91	99	112	116	97
Income	1,059	1,138	1,158	1,072	1,119	1,150	1,173	1,054
EBIT	233	277	367	258	297	517	528	361
Adjusted Income	1,059	1,138	1,158	1,072	1,119	1,150	1,173	1,054
Adjusted EBIT	321	390	401	301	352	499	478	378
Middle Europe
External Income	1,396	1,372	1,206	1,109	1,516	1,076	1,092	1,066
Internal Income	108	229	258	252	262	266	259	236
Income	1,504	1,601	1,464	1,362	1,778	1,342	1,351	1,302
EBIT	304	418	188	336	-107	311	344	358
Adjusted Income	1,504	1,601	1,464	1,362	1,370	1,342	1,351	1,302
Adjusted EBIT	418	396	350	345	350	305	476	388
Southern Europe
External Income	2,655	2,019	2,177	1,937	2,575	1,955	2,192	1,967
Internal Income	167	180	204	152	195	140	159	130
Income	2,822	2,199	2,381	2,089	2,770	2,095	2,351	2,097
EBIT	806	544	842	664	-1,286	-2,274	910	757
Adjusted Income	2,822	2,199	2,381	2,089	2,770	2,095	2,351	2,097
Adjusted EBIT	1,195	705	887	693	1,483	914	979	854
Tactical Markets
External Income	508	532	537	495	431	461	485	482
Internal Income	139	145	155	146	145	137	153	156
Income	646	677	692	642	576	598	637	638
EBIT	300	325	345	118	383	287	168	157
Adjusted Income	646	677	692	642	576	598	637	638
Adjusted EBIT	249	264	246	176	150	183	191	130

Segment overview

Quarterly

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2023	2023	2023	2023	2022	2022	2022	2022
Servicing
External Income	3,415	2,785	2,740	2,503	2,929	2,447	2,576	2,472
Internal Income	502	656	719	641	701	656	687	619
Income	3,918	3,441	3,459	3,144	3,630	3,103	3,263	3,091
EBIT	378	298	451	243	614	62	570	423
Adjusted Income	3,918	3,441	3,459	3,144	3,630	3,103	3,263	3,091
Adjusted EBIT	893	416	564	318	978	558	658	543
Adjusted EBIT Margin, %	23	12	16	10	27	18	20	18
Investing
Income	2,114	2,173	2,237	2,020	2,613	2,083	2,249	1,999
Adjusted Income	2,114	2,173	2,237	2,020	2,205	2,083	2,249	1,999
– thereof REOs	49	34	35	23	65	35	44	49
–thereof Other Income	0	5	8	7	33	73	74	48
EBIT	1,265	1,266	1,290	1,134	-1,327	-1,220	1,380	1,210
Adjusted EBIT	1,291	1,339	1,319	1,198	1,357	1,344	1,466	1,207
Investing Segment: Capex Deployed	532	530	2,783	1,664	1,277	1,335	3,141	1,784
Adjusted ROI, %	14	14	14	13	15	14	14	13
ERC	76,058	81,522	86,066	78,539	77,634	82,832	81,976	76,092

Financial report

Consolidated Statement of Income

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2023	2022	2023	2022
Servicing Income	3,167	2,354	10,294	8,978
Interest Income	2,047	2,055	8,247	7,979
Other Income	311	1,074	1,313	2,174
Income	5,525	5,483	19,853	19,131
Direct costs	-2,681	-2,358	-9,663	-9,023
Gross Earnings	2,844	3,124	10,191	10,108
Net Credit Gains/(Losses)	2	15	25	112
Shares of Associates and Joint Ventures	55	-2,970	74	-5,223
Operating Income	2,901	170	10,290	4,997
Indirect Costs	-1,256	-1,338	-5,935	-4,929
Net Operating Income/EBIT	1,644	-1,168	4,353	68
Net Financial Expense	-871	-1,758	-3,515	-3,394
Income before taxes	774	-2,926	839	-3,326
Taxes	-543	-662	-555	-1,131
Net Income/(loss) from continuing operations	231	-3,588	284	-4,457
Net Income/(loss) from discontinuing operations	47	12	-227	78
Net Income/(loss) for the period	278	-3,576	56	-4,379
Of which attributable to
Parent company shareholders	187	-3,633	-188	-4,473
Non-controlling interest	91	57	244	93
Average Number of Shares:
Before dilution	120,537	120,537	120,537	120,637
After dilution	120,537	120,537	120,537	120,637
Net income/(loss) Per Share
Before dilution	1.56	-30.14	-1.56	-37.07
After dilution	1.56	-30.14	-1.56	-37.07
Discontinued Income/(loss) Per Share
Before dilution	0.39	0.10	-1.88	0.65
After dilution	0.39	0.10	-1.88	0.65

Consolidated statement of Other Comprehensive Income

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2023	2022	2023	2022
Net Income/(loss) from continuing operations	231	-3,588	284	-4,457
Net Foreign Exchange Translation Differences	-1,792	1,121	-247	3,868
Net Investment Hedging Gains / (Losses)	743	-62	261	-1,017
Items Subsequently Reclassified to Statement of Income	-1,049	1,059	14	2,851
Net Pension Benefit Liability Measurement Differences	-11	129	-12	126
Items Not Subsequently Reclassified to Statement of Income	-11	129	-12	126
Comprehensive income from continuing operations	-829	-2,400	286	-1,480
Comprehensive income from discontinuing operations	47	12	-227	78
Comprehensive income/(loss) for the period	-782	-2,388	59	-1,402
Of which attributable to
Parent company shareholders	-772	-2,495	-182	-1,737
Non-controlling interest	-10	107	240	335
Comprehensive income/(loss) for the period	-782	-2,388	59	-1,402
Average Number of Shares:
Before dilution	120,537	120,537	120,537	120,637
After dilution	120,537	120,537	120,537	120,637
Total Comprehensive Income/(loss) Per Share
Before dilution	-6.40	-20.71	-1.51	-14.43
After dilution	-6.40	-20.71	-1.51	-14.43
Discontinued Comprehensive Income/(loss) Per Share
Before dilution	0.39	0.10	-1.88	0.65
After dilution	0.39	0.10	-1.88	0.65

Consolidated statement of financial position

SEK M	31 Dec 2023	31 Dec 2022	31 Dec 2021
ASSETS
Intangible Assets	39,829	39,053	37,811
Portfolio Investments	35,294	35,645	31,478
Investment in Joint Ventures	823	1,174	6,438
Property, Plant and Equipments	280	241	218
Right of Use Assets	584	659	756
Deferred Tax Assets	2,197	1,891	1,748
Other Financial Assets	175	53	90
Total Non-Current Assets	79,183	78,716	78,539
Assets Held for Sale	496	-	-
Property Holdings	329	302	315
Tax Receivable	686	300	170
Derivatives	324	253	107
Receivables and Other Operating Assets	4,316	4,536	4,158
Fiduciary Assets	1,106	1,130	1,063
Cash and Cash Equivalents	3,769	3,474	4,553
Total Current Assets	11,025	9,994	10,366
TOTAL ASSETS	90,208	88,710	88,905

SEK M	31 Dec 2023	31 Dec 2022	31 Dec 2021
LIABILITIES & SHAREHOLDERS' EQUITY
Net Pension Benefit Liability	142	141	329
Borrowings	51,899	50,709	47,754
Other Financial Liability	641	406	478
Provisions	107	31	42
Deferred Tax Liability	1,411	1,279	1,103
Lease Liability	436	482	582
Total Non-Current Liabilities	54,635	53,047	50,288
Liabilities Held for Sale	100	-	-
Borrowings	7,953	5,810	4,748
Tax Payable	572	665	1,198
Payables and Other Operating Liabilities	6,040	6,485	6,514
Derivatives	303	138	173
Fiduciary Liabilities	1,106	1,130	1,063
Provisions	376	8	10
Lease Liability	193	230	223
Total Current Liabilities	16,644	14,464	13,930
Share Capital	3	3	3
Reserves	18,441	18,809	20,770
Retained Earnings	-1,679	-272	925
Shareholders' Equity	16,753	18,540	21,698
Non-Controlling Interest	2,176	2,659	2,989
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	90,208	88,710	88,905

Consolidated statement of changes in Equity

				Retained earnings incl.	Total Shareholders' equity attributable	Non-controlling	Total
SEK M Opening balance, January 1 2023	Share capital 3	Other paid-in capital 17,442	Reserves 5,963	net earnings for the year -4,868	to Parent Company Shareholders 18,540	interests 2,659	Shareholders' equity 21,199
Comprehensive income, 2023
Net earnings for the year	-	-	-	-188	-188	244	56
Other Comprehensive income for the year
Foreign Exchange Differences	-	-	-246	-	-246	-1	-247
Net Investment Hedging Differences	-	-	281	-	281		281
Defined Benefit Remeasurement Differences	-	-	-	-9	-9	-3	-12
Income Tax on Other Comprehensive Income	-	-	-20	-	-20		-20
Share Dividend	-	-	-	-1,627	-1,627	-380	-2,007
Share Repurchases	-	-	-	-	-	-	-
Share-based Employee Remuneration	-	-	-	21	21	-	21
Taxes related to Share-based Payments	-	-	-	-	-	-	-
NCI Share Repurchases	-	-	-	-	-	-343	-343
Closing balance, 31 December 2023	3	17,442	5,978	-6,671	16,751	2,176	18,927
Opening balance, January 1 2022	3	17,442	3,328	925	21,698	2,989	24,687
Comprehensive income, 2022
Net earnings for the year	-	-	-	-4,473	-4,473	93	-4,379
Other Comprehensive income for the year
Foreign Exchange Differences	-	-	3,628	-	3,628	241	3,868
Net Investment Hedging Differences	-	-	-1,311	-	-1,311	-	-1,311
Defined Benefit Remeasurement Differences	-	-	-	125	125	1	126
Income Tax on Other Comprehensive Income	-	-	294	-	294	-	294
Share Dividend	-	-	-	-1,632	-1,632	-392	-2,024
Share Repurchases	-	-	-	-72	-72	-	-72
Share-based Employee Remuneration	-	-	24	-	24	-	24
Taxes related to Share-based Payments	-	-	-	-14	-14	-	-14
Acquisition of Minority Interest	-	-	-	272	272	-272	-
Closing balance, 31 December 2022	3	17,442	5,962	-4,868	18,540	2,659	21,198

Consolidated statement of cash flow

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
	2023	2022	2023	2022
EBIT from Continuing Operations	1,644	-1,168	4,353	87
EBIT from Discontinuing Operations	2	13	10	67
Operating earnings (EBIT)	1,646	-1,155	4,364	154
Not included in the cash flow
Amortisation/depreciation and impairment	535	292	1,545	3,220
Net Credit Gains / (Losses)	-2	-15	-9	-117
Other adjustment for items not included in cash flow	-249	3,113	325	3,988
Gain on sale of subsidiaries	-	-408	-	-408
Non-Cash Adjustments	284	2,981	1,861	6,683
Payments from Joint Ventures	83	73	412	346
Operating Cash Flows Before Working Capital	2,014	1,900	6,636	7,183
Changes
Changes in working capital	-511	-307	-189	-757
Operating Cash Flows Before Taxes	1,502	1,593	6,448	6,427
Income Taxes Paid	-202	-245	-1,137	-1,444
Net Cash Flows from Operating Activities	1,300	1,348	5,311	4,982

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
	2023	2022	2023	2022
Investing activities
Acquistion of Portfolio Investments	-426	-1,802	-5,114	-7,109
Sale of Portfolio Investments	-	-	-	-
Amortisation of Portfolio Investments	1,426	1,552	5,385	5,320
Acquistion of Intangible Assets	-117	-88	-229	-275
Disposal of Intangible Assets	-1	7	2	7
Acquistion of Propterty, Plant and Equipment	-66	-43	-124	-87
Disposal of Property, Plant and Equipment	21	3	1	4
Investment in Associated Companies / Subsidiaries	-687	-279	-2,347	-279
Disposal of Associated Companies / Subsidiaries	-	781	-134	790
Cash flow from investing activities	152	130	-2,561	-1,629
Financing activities
Proceeds/(repayment) from Borrowings	519	-1,131	3,349	519
Repayment of Leases	344	-73	-101	-249
Proceeds/(repayment) of other financial liabilities	-92	-15	-291	-144
Share repurchases	-	-	-355	-72
Finance Income Received	29	14	68	25
Finance Expense Paid	-526	-1,616	-2,994	-3,278
Receipts from Settlement of Hedging Derivatives	383	156	1,168	654
Payments for Settlement of Hedging Derivatives	-507	-74	-776	-306
Net Payments on Settlement of Other Derivatives	-124	16	-321	-7
Dividends Paid to Parent Company's Shareholders	-814	-	-1,627	-1,632
Dividends Paid to Non-Controlling Interest	-0	-22	-380	-392
Cash flow from financing activities	-788	-2,748	-2,262	-4,884
Total change in liquid assets	664	-1,270	488	-1,531
Opening balance of liquid assets	3,465	4,541	3,474	4,553
Exchange rate difference in liquid assets	-164	203	492	452
Closing balance of liquid assets	3,966	3,474	3,966	3,474

The closing balance of liquid assets for the 12 month period and the three month period ended as of 31 December 2023, included cash and cash equivalents from the discontinued operations of SEK 197 M.

Statement of Income – Parent company

	Full year
SEK M	2023	2022
Other Income	1,617	891
Income	1,617	891
Direct Costs	-286	-206
Gross Earnings	1,331	685
Operating Income	1,331	685
Indirect Costs	-2,114	-1,615
Net Operating Income/EBIT	-783	-930
Net Financial Expense	841	-1,356
Income before taxes	59	-2,287
Taxes	24	276
Net Income/(loss) for the period	82	-2,010

Net earnings for the period corresponds to comprehensive earnings for the period.

Statement of financial position – Parent company

	31 Dec	31 Dec
SEK M	2023	2022
ASSETS
Non-Current Assets
Intangible Assets	527	547
Tangible Assets	4	6
Financial Assets	82,911	80,936
Total Non-Current Assets	83,442	81,490
Current Assets
Receivables	1,452	1,437
Cash and Cash Equivalents	762	545
Total Current Assets	2,215	1,982
TOTAL ASSETS	85,657	83,472
SHAREHOLDERS' EQUITY AND LIABILITIES
Restricted Equity	812	830
Unrestricted Equity	4,958	6,464
Total Shareholders' Equity	5,770	7,294
Non-Current Liabilities	69,604	68,238
Current liabilities	10,283	7,940
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	85,657	83,472

Notes

Accounting principles

This interim report has been prepared in accordance with the Annual Accounts Act and IAS 34 Interim Financial Reporting for the Group and in accordance with Chapter 9 of the Annual Accounts Act for the Parent Company. In addition to appearing in the financial statements, disclosures in accordance with IAS 34 also appear in other parts of the interim report.

The accounting principles applied by the Group and the Parent Company are essentially unchanged compared with the 2022 Annual Report.

Changes to Primary Statements and Notes

As part of the new strategy communicated on 13 September and completion of technical review of our existing primary statements, the Group has made following changes to improve transparency and clarity of financial informa-

tion communicated to investors.

• 1. Previously, 'Revenue' included servicing income, interest income, and other gains and losses. 'Income' going forward shall include servicing Income, interest income (excluding income forming part of cash management), sale of property holdings, portfolios and lease income. Based on the new format, YTD'23 Income is lower by SEK 25 M (net revaluation gains/ losses on portfolio investments).
• 1. Previously, 'Costs' were presented based on functional analysis. 'Costs' going forward shall be presented based as 'Direct Costs' and 'Indirect Costs' based on the nature of expense analysis. Direct costs include incremental costs directly related to Income generating activities. Any overheads that are not wholly or directly related to 'Income' line is included in 'Indirect Costs'. Based on the new format, YDT'23 Direct Costs are lower and Indirect Costs are higher by SEK 2.8 bn. Accordingly, YTD'23 Gross Earnings and Operating Income are higher by SEK 2.8 bn.
• 1. Previously, hedging activities were not prominently disclosed. These are now prominently disclosed in Statement of Other Comprehensive Income, Statement of Cashflows and Statement of Change in Equity.
• 1. Previously, 'Liabilities to Credit Institutions', 'Commercial Papers' and 'Bond Loans' were separately disclosed on Statement of Financial Position. These items will be aggregated and disclosed as 'Borrowings'. Based on the old format, 'Liabilities to Credit Institution', 'Commercial Papers' and 'Bond Loans' amounted to SEK 14.9 bn, SEK 0.7 bn and SEK 44.3 bn, respectively.
• 1. Previously, 'Derivatives' were disclosed within Notes to the financial statements. 'Derivatives' shall be prominently disclosed on Statement of Financial Position.
• 1. Previously, 'Goodwill', 'Capitalised Expenditure for IT Development and Other Intangibles' and 'Client Relationships' were separately disclosed. These items will be aggregated and disclosed as 'Intangible Assets'. Based on the old format, 'Goodwill', 'Capitalised Expenditure for IT Development and Other Intangibles' and 'Client Relationship' amounted to SEK 35.6 bn, SEK 1.5 bn and SEK 2.8 bn, respectively.

• Previously, 'Accounts Receivable', 'Other Receivables' and 'Prepaid Expenses and Accrued Income' were separately disclosed on Statement of Financial Position. These are now included as one line item, 'Receivable and Other Operating Assets' and breakdown is included in the Notes to the financial statements. Based on the old format, 'Account Receivable', 'Other Receivables' and 'Prepaid Expenses and Accrued Earnings' amounted to SEK 1.4 bn, SEK 0.8 bn and SEK 2.2 bn, respectively.

• 1. Previously, 'Accounts Payable', 'Advances from Clients', 'Accrued Expenses and Prepaid Income' and 'Other current liabilities' were separately disclosed on Statement of Financial Position. These are now included as one line item, 'Payables and Other Operating Liabilities' and breakdown is included in the Notes to the financial statements. Based on the old format, 'Accounts Payable', 'Advances from Clients', 'Accrued Expenses and Prepaid Earnings' and 'Other current liabilities' amounted to SEK 0.3 bn, SEK 0.1 bn, SEK 4.2 bn and SEK 1.5, respectively.
• 1. Previously, 'Amortisation of Portfolio Investments' was included in operating cashflows. All movements from Portfolio Investments shall be included in investing cashflows except for interest income.
• 1. Previously, 'Property Holdings' was included in investing cashflows. As this is part of the operating cycle, it shall be included as part of working capital changes in operating cashflows in Statement of Cash Flows.
• 1. Previously, 'Portfolio Investments', 'Credit Market Services' and 'Strategic Markets' were recognised as segments. The Group shall have two business segments: 'Servicing' and 'Portfolio Investments'. The above operating segments will be reported into following geographical segments: 'Northern Markets', 'Middle Markets', 'Southern Markets' and 'Tactical Markets'.
• 1. Previously, 'Mature and Emerging Markets' and 'Strategic Markets' were recognised as Cash-Generating Untis ("CGUs"). The Group will recognise CGUs at Markets level:
• a. Northern Markets (4 markets): 'Norway', 'Sweden', 'Denmark' and 'Finland'
• b. Middle Markets (5 markets): 'Austria & Germany', 'Belgium & Netherlands', 'Switzerland', 'UK & Ireland' and 'France'
• c. Southern Markets (4 markets): 'Portugal', 'Spain', 'Italy' and 'Greece'
• d. Tactical Markets (6 markets): 'Czech Republic', 'Romania', 'Slovakia', 'Hungary', 'Poland' and 'Baltics'
• 1. Previously, Weighted Average Cost of Capital ("WACC") was applied at the aggregated CGUs level of 'Credit Markets Services' and 'Strategic Markets'. The Group with effect from Q4 2023 shall apply WACC at Markets level as mentioned above in point 11.
• 1. Previously, the forecasting period for goodwill impairment test was 8 years. The Group has decided to reduce the forecasting period to 5 years.

Consolidated Statement of Income Presentation Reconciliation

	31 December 2023
	Old			Revised
SEKm		Format Note 1 Note 2		Format
Income (previously "Revenue")	19,878	-25		19,853
Direct Costs (previously "Cost of Sales") -12,485		-		2,823 -9,663
Gross Earnings	7,393	-25		2,823 10,191
Net Credit Gains/(Losses) on Portfolio Investments	-	25	-	25
Shares of Associates and Joint Ventures	74	-	-	74
Operating Income	7,467	-		2,823 10,289
Indirect Costs (previously "Sales, Marketing and Administrative expenses")	-3,114	-		2,823 -5,935
Net Operating Income/EBIT	4,353	-	-	4,353

Parent Company

The Group's publicly listed Parent Company, Intrum AB (publ), owns the subsidiaries, provides the Group's head office functions and handles certain Group-wide development work, services and marketing.

The Parent Company reported income of SEK 1,617 M (891) for the year and earnings before tax of SEK 59 M (-2,287). The Parent Company invested SEK 69 M (48) in fixed assets for the quarter and at the end of the quarter held SEK 762 M (545) in cash and cash equivalents. The average number of employees was 79 (97).

Development in the period

Total assets as of 31 December 2023 of SEK 90,208 M is up by SEK 1,498 M, or 2%, compared to 31 December 2022.

On 1 June 2023, the Group completed its acquisition of Arrow Global Group UK operations for a total consideration of SEK ~ 524 M. The Group also acquired 50% of Arrow Global's UK portfolio (unsecured) amounting to SEK ~ 1,238 M. The Group has joint control with Arrow Global to manage the portfolio which is recognised as a joint operation. The portfolio performance, assets and liabilities are proportionally included in the consolidated financial statements.

The acquisition from Arrow Global Group will assist in growing secured loans and asset servicing capabilities and significantly broaden and deepen the service range to existing and new clients. The integration of this acquisition to the UK operations will also result in significant cost synergies.

On 1 September 2023, the Group completed its acquisition of Haya Real Estate in Spain for a total consideration of SEK ~1,308 M. The acquired business includes a servicing platform for secured loans and assets and has no principal investment activity.

The acquisition improves the Group's client service business by deepening our existing relationships. Post-acquisition, the Group has become the key servicing provider to all the leading banks in Spain. The integration of this acquisition to the UK operations will also result in significant cost synergies. On 11 September 2023, the Group completed its acquisition of eCollect

business in Switzerland for a total consideration of SEK ~257 M. The upfront cash consideration amounts to SEK 91 M, with the remaining consideration to be paid in 2026 and 2027 on successful achievement of specified KPIs.

eCollect offers a full value chain services from invoicing, billing, customer communications via cloud based digital platform. The acquisition is expected to help the Group in expanding its digital solution offerings to a wider client base.

On 17 October 2023, the Group completed its acquisition of Ophelos business in the UK for a total consideration of SEK ~569 M. The upfront cash consideration amounts to SEK 390 M, with the remaining consideration to be paid in 2024, 2025 and 2026 on successful completion of specified KPIs.

Ophelos is an AI supported debt collection platform which provides additional data to its clients compared to that of traditional services led debt collectors. The Group seeks to advance the development of tech-enabled solutions in its offering by further strengthening its market-leading position – a key component in building a tech-driven organisation.

Subsequent integration of Ophelos across Markets over the next 3 years will improve servicing margins by significantly reducing cost of debt collection and at the same time increasing opportunities to expand servicing products to wider untapped market participants.

Discontinued operations

On 24 May 2023, the Group completed the sale of the Brazilian operations in line with its 2023 divestment strategy. The disposal resulted in a loss of SEK 35 M.

On 30 June 2023, Intrum signed a binding agreement to exit operations in the Baltics (Latvia, Lithuania and Estonia) and Romania. The total purchase consideration amounts to EUR 30 M and EUR 17 M for Baltics and Romania, respectively. The purchase consideration will be settled on a deferred payment basis with last payments settled in December 2024 for Baltics and in December 2025 for Romania.

The impairment of SEK 120 M is principally driven by the disposal of the servicing platform in the Lithuania and Romania.

The financial results of discontinued operations are as follows:

	31 December 2023
	Including
	Continuing Discontinued Discontinued
SEK M	Operations	Operations	Operations
Income	19,853	147	20,000
Direct costs	-9,663	-59	-9,722
Net Credit Gains/(Losses)	25	-16	9
Share of Associates and Joint	74	-	74
Ventures
Indirect Costs	-5,935	-62	-5,997
Net Operating Income/EBIT	4,353	10	4,364
Net Financial Items	-3,515	-233	-3,747
Income before Tax	839	-223	617
Taxes	-555	-4	-559
Net Income/(loss) for the period	284	-227	56

	31 December 2022
			Including
	Continuing	Discontinued	Discontinued
SEK M	Operations	Operations	Operations
Income	19,131	237	19,368
Direct costs	-9,023	-78	-9,101
Net Credit Gains/(Losses)	112	5	117
Share of Associates and Joint	-5,223	-	-5,223
Ventures
Indirect Costs	-4,929	-78	-5,007
Net Operating Income/EBIT	68	86	154
Net Financial Items	-3,394	-10	-3,404
Income before Tax	-3,326	76	-3,250
Taxes	-1,131	1	-1,130
Net Income/(loss) for the period	-4,457	78	-4,379

The cashflows of discontinued operations are as follows:

Financing Cashflows Net Cashflows	23 474	-26 -128
Investing Cashflows	37	-125
Operating Cashflows	413	22
SEK M	2023	2022
	31 Dec	31 Dec

The impact on earnings per share from discontinued operations is as follows:

	31 Dec	31 Dec
SEK M	2023	2022
Earnings per Share before Dilution	-1.88	0.65
Earnings per Share after Dilution	-1.88	0.65

The Brazilian operations was disposed of during Q2 2023. The Finnish, Estonian and Latvian operations were disposed of during Q3 2023. The Romanian portfolio investments were disposed of during Q4 2023.. The Group is expected to complete the disposal of the Lithuanian operations (including portfolio investments) in Q1 2024.

All assets and liabilities associated with the jurisdictions sold during 2023 are excluded from the consolidated Statement of Financial Position as of 31 December 2023.

Transactions with related parties

During the quarter no significant transactions occurred between the Group and other closely related companies, board members or the Group management team.

Total		35,632	38,777	32,758
Other	-	228	-	-
Poland	Tactical	43	44	38
Greece	South	5,083	1,806	1,506
Italy	South	1,831	4,056	3,382
Spain	South	4,388	6,221	5,188
Portugal	South	910	1,016	847
UK & Ireland	Middle	4,009	4,179	3,678
France	Middle	3,506	3,916	3,265
Switzerland	Middle	3,211	3,372	2,681
Belgium & Netherlands	Middle	1,232	1,375	1,147
Austria & Germany	Middle	2,008	2,243	1,870
Finland	North	2,541	2,838	2,366
Denmark	North	783	876	731
Sweden	North	2,013	2,243	2,029
Norway	North	3,845	4,591	4,029
Markets	Segment	2023	2022	2021
Goodwill

In Q3 2023, following changes to corporate strategy and group reorganisation, the goodwill balance has been reallocated to 'Austria & Germany', 'Belgium & Netherlands', 'Czech Republic, Romania & Slovakia', 'Finland', 'France', 'Hungary', 'Poland', 'Portugal', 'Norway', 'Sweden', 'Denmark', 'Switzerland', 'UK & Ireland', Spain', 'Italy' and 'Greece' Markets.

The goodwill balances have been reallocated on the relative recoverable value estimates as at 30 September 2023 for current and comparative reporting periods

The goodwill balances are annually assessed for impairment by comparing carrying amounts to value-in-use estimates. These estimates are measured based on post-tax cash flow forecasts. These forecasts are based on historical results adjusted with current assumptions and future trends for each respective CGUs.

The value-in-use estimates are based on a 5-year forecasting period. The forecasting period includes steady growth rates applied to the initial period, whilst diminishing growth rates are applied to later periods. At the end of 5th year, a terminal value is estimated to reflect the value relating to future period in perpetuity. The value-in-estimate is a total of forecasting period and terminal value discounted at post-tax WACC.

The value-in-use estimates are based on following key assumptions:

Key Assumptions	2023	2022
WACC (Post-tax)	8.0% to 11.8%	7.5%
Tax Rate	15.4% to 27.9%	22.0%
Growth Rate	-5.4% to 19.1% 3.6% to 12.9%
Terminal Growth Rate	2.5%	2.5%

WACC is one of the key inputs to compute the value-in-use estimates. Following sensitivity analysis highlights changes to the headroom between goodwill balance and value-in-use estimates if WACC changes by 50 Basis Points ("BPS"), whist assuming no change to Terminal Growth Rate ("TGR"):

WACC sensitivity

			WACC sensitivity Headroom, %
			(100)	(50)		50	100
Markets	Segment WACC		BPS		BPS WACC	BPS	BPS
Norway	North		8.5% 36% 23%		12%	3%	-4%
Sweden	North		8.3% 37%	24%	12%	3%	-5%
Denmark	North		8.1% 39%	24%	12%	2%	-6%
Finland	North		8.6% 36% 23%		12%	3%	-4%
Austria & Germany	Middle		8.1% 39%	24%	12%	2%	-6%
Belgium & Netherlands Middle			9.0% 34% 22%		12%	4%	-4%
Switzerland	Middle		8.0% 38%	24%	12%	3%	-5%
France	Middle		8.7% 36% 23%		12%	3%	-4%
UK & Ireland	Middle		9.9% 32%	21%	12%	4%	-3%
Portugal	South		10.8% 29% 20%		12%	6%	-1%
Spain	South		10.4% 94% 82%			71% 62% 54%
Italy	South	11.3% 92%		81%		71% 63% 55%
Greece	South		11.8% 91% 80%			71% 63% 55%
Poland	Tactical		11.1% 23% 18%		12%	8%	4%

TGR is another key input to compute the value-in-use estimates. Following sensitivity analysis highlights changes to the headroom between goodwill balance and value-in-use estimates if TGR changes by 50 Basis Points ("BPS"), whilst assuming no change to WACC:

TGR sensitivity

			TGR sensitivity Headroom, %
			(100)	(50)		50	100
Markets	Segment	TGR	BPS	BPS	TGR	BPS	BPS
Norway	North	2.5%	-2%	5%	12%	21% 32%
Sweden	North	2.5%	-3%	4%		12% 22% 34%
Denmark	North	2.5%	-3%	4%		12% 23% 35%
Finland	North	2.5%	-2%	5%	12%	21% 32%
Austria & Germany	Middle	2.5%	-3%	4%		12% 23% 35%
Belgium & Netherlands Middle		2.5%	-1%	5%	12%	21%	31%
Switzerland	Middle	2.5%	-3%	4%		12% 22% 34%
France	Middle	2.5%	-2%	5%	12%	21% 32%
UK & Ireland	Middle	2.5%	0%	6%		12% 20% 29%
Portugal	South	2.5%	2%	7%	12%	19%	26%
Spain	South		2.5% 58% 64%			71% 79% 89%
Italy	South		2.5% 59% 65%			71% 78% 87%
Greece	South		2.5% 59% 65%			71% 78% 86%
Poland	Tactical	2.5%	6%	9%	12%	16% 20%

Market development and outlook

The Group's integrated business model consists of credit management services and portfolio investments and benefits from favourable medium term development prospects in both areas. The Group continues to execute

its Transformation program and will gradually standardise, globalise and improve its collections processes. The Group anticipates the actions being taken in this area will continue to improve efficiency and margins, as well as enabling sustainable and organic growth.

Significant risks and uncertainties

Risks to which the Group and Parent Company are exposed include but are not strictly limited to any and all risks relating to economic developments, compliance and changes in regulations, reputation risks, tax risks, risks attributable to IT and information management, epidemic and pandemic risks, geopolitical risks such as political risks, civil unrest, disruption, or conflicts including armed conflicts and war directly or indirectly affecting locations where Intrum or its clients maintain or conduct business, risks attributable to acquisitions, market risks, liquidity risks, credit risks, risks inherent in and associated with portfolio investments and payment guarantees, as well as financing risks. The risks are described in more detail in the Board of Directors' report in Intrum's 2022 Annual and Sustainability report. High level of uncertainty with high inflation and in particular high and increasing energy prices and interest rates are a major concern for the euro-area. Intrum has a resilient business model and demand for our services and solutions are expected to increase over the coming quarters. No new significant risks have arisen besides those described in the Annual and Sustainability report.

Fair value of financial instruments

Most of the Group's financial assets and liabilities (portfolio investments, accounts receivable, other receivables, cash and cash equivalents, liabilities to credit institutions, bonds, commercial paper, accounts payable and other liabilities) are carried at amortised cost in the consolidated financial statements. For most of these financial instruments, the carrying amount is deemed to be a good estimate of fair value at group level. For outstanding bonds with a total carrying value of SEK 44,273 M (46,958 at the end of December 2022) at the end of the quarter, fair value is, however, estimated at SEK 39,566 M (42,528 at the of December 2022). The Group also holds forward exchange contracts and other financial assets of SEK 324 M (253 at the end of December 2022), as well as financial liabilities of SEK 303 M (138 at the end of December 2022) carried at fair value through the income statement.

Net Financial Items Specification

		Fourth quarter		Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2023	2022	%	2023	2022	%
Interest Earnings	36	32	13	127	85	50
Interest Costs	-893	-694	29	-3,417	-2,325	47
Interest Cost on Leasing Liability	-9	-9	10	-36	-33	9
Exchange Rate Differences	32	-27	-258	3	-28	-110
Amortisation of Borrowing Costs	-28	-37	-25	-100	-109	-8
Commitment Fee	-23	-32	-27	-98	-127	-23
Other Financial Items	15	-995	-102	6	-867	-101
Total Net Financial Items	-871	-1,761	-51	-3,515	-3,404	3
IAC in Net Financial Items	-	995		-	995
Adjusted Net Financial Items	-871	-766	14	-3,515	-2,409	46

The Total Net Financial Items for the 12 month period and the three month period ended as of 31 December 2023, included Net Financial Items from discontinued operations of SEK 11 M and SEK 5 M, respectively.

Total Financing

As of 31 December	59,852	56,519
Amortised costs and other	100	109
Currency translation effect	-116	1,079
Repayments	-30,223	-30,644
Proceeds	33,474	31,163
As of 1 January	56,519	52,501
	2023	2022

Net debt consist of EUR bonds, SEK MTNs, Commercial papers, Bank term loan facilities and drawings under the revolving credit facility. Net debt amounted to SEK 56,871 M (54,141 at the end of December 2022), the share of fixed rate debt amounts to 69% of net debt and is principally composed of EUR bonds with maturities between 2024 and 2028. Net debt in relation to the RTM cash EBITDA stands at 4.4x compared to 4.1x at the end of the fourth quarter 2022. By the end of the fourth quarter, Intrum had SEK 694 M (1,130) outstanding commercial paper, the decrease reflects a more negative short term credit sentiment. Drawings under the revolving credit facility have been used to cover for this. At the end of the quarter SEK 13,834 M (8,430) of Intrum's revolving credit facility was utilised.

Events after the balance sheet date

On 22 January 2024, Intrum agreed to sell part of its portfolio investments back-book to a third-party investor for a total consideration of SEK ~9.6 bn. The transaction will result in a total loss of SEK ~845 M, which will be recognised in the Q1 2024 consolidated Statement of Income.

The investments disposed of by Intrum will be acquired by a leveraged investment vehicle. The acquired assets will be funded by 57% leverage and 27.95% by the third-party investor. The third-party investor and Intrum will acquire a 65% and 35% stake in the leveraged investment vehicle, respectively. Intrum will have a minimum 5-year exclusive servicing agreement with the investment vehicle, provided certain KPIs are met. Intrum plans to use cash proceeds from the back-book sale amounting to SEK 8.2 bn to reduce its debt.

Other information

The share

Intrum AB's (publ) share is included in Nasdaq Stockholm's Large Cap list. During the period 2 October–29 December 2023, 49,341,115 shares were traded for a total value of SEK 2,969 M, corresponding to 41 % of the total number of shares at the end of the period.

The highest price paid during the period was SEK 71.90 (28 December) and the lowest was SEK 51.14 (1 December). On the last trading day of the period, 29 December 2023, the price was SEK 69.78 (latest paid). During the period Intrum AB's (publ) share price increased by 7%, while Nasdaq OMX Stockholm increased by 13 %.

Share price, SEK (1 October 2020 – 31 December 2023)

Intrum OMX Stockholm (Indexed)

Shareholders

		Capital and
31 Dec 2023	No of shares	Votes, %
Nordic Capital Through Companies	38,769,929	31.9
AMF Pension & Fonder	9,081,539	7.5
Avanza Pension	3,576,105	2.9
Vanguard	2,846,133	2.3
Swedbank Robur Fonder	2,336,045	1.9
BlackRock	1,216,694	1.0
Swedbank Försäkring	1,205,567	1.0
Intrum AB	1,183,983	1.0
Handelsbanken Fonder	1,145,426	0.9
Nordnet Pensionsförsäkring	848,432	0.7
Lennart Laurén	801,650	0.7
Dimensional Fund Advisors	788,844	0.6
SEB Fonder	728,728	0.6
Fidelity International (FIL)	706,555	0.6
Futur Pension	701,310	0.6
Total fifteen largest shareholders	65,936,940	54.2

Total number of shares excluding treasury shares 120,536,935 Source: Modular Finance Holdings and Intrum

Treasury holdings of 1,183,983 shares are not included in the number of shares outstanding. The proportion of Swedish ownership amounted to 48.9 % (institutions 17.7 percentage points, mutual funds 4.2 percentage points and private individuals 27.0 percentage points).

Currency exchange rates

	Closing	Closing	Average	Average	Average
	rate	rate	rate	rate	rate
	31Dec	31Dec	Oct–Dec	Oct–Dec	Jan–Dec
	2023	2022	2023	2022	2022
1 EUR=SEK	11.10	11.12	11.49	10.60	10.63
1 CHF=SEK	11.98	11.29	11.81	10.55	10.59
1 NOK=SEK	0.99	1.06	1.01	1.05	1.05
1 HUF=SEK	0.029	0.028	0.030	0.027	0.027

For further information, please contact

Andrés Rubio, President and CEO, tel: +46 8 546 102 02 Anders Blomqvist, Interim CFO, tel: +46 8 546 102 02 Emil Folkesson, Investor Relations, tel: +46 8 546 102 02

Anders Blomqvist is the contact under the EU Market Abuse Regulation.

The information in this interim report is such as Intrum AB (publ) is required to disclose pursuant to the EU's markets abuse directive and the Securities Markets Act.

The information was provided under the auspices of the contact person above for publication on 25 January 2024 at 07.00 a.m. CET.

Year-end reports, interim reports and other financial information are available on www.intrum.com.

Denna delårsrapport finns även på svenska.

Stockholm, 25 January 2024

Andrés Rubio

President and CEO

Definitions

Result concepts, key figures and alternative indicators

Acquired growth

Growth in cash income related to mergers and acquisitions of Group companies.

Adjusted Earning per Share

Net earnings for the period attributable to Parent company's shareholders adjusted for IACs attributable to the Parent company's shareholders and the corresponding tax amount divided by average number of outstanding shares for the period.

Adjusted EBIT

Adjusted EBIT is operating earnings excluding revaluations of portfolio investments and other items affecting comparability.

Adjusted EBIT margin

Adjusted operating earnings (EBIT) in relation to adjusted income.

Adjusted EBITDA

EBITDA is defined as adjusted EBIT adding back adjusted deprecation and amortisations of tangible and intangible assets.

Adjusted Income

Income excluding portfolio revaluations and other items affecting comparability.

Amortisation percentage

Amortisation on portfolio investments during the period, as a percentage of collections.

Annual contract value, ACV

The annual contract value represents the average annual Servicing income generated from client contracts.

Capex Deployed

Investments made to maintain and grow the business. For example, IT and tangible assets.

Cash EBITDA

Cash EBITDA is adjusted operating earnings (EBIT) adding back depreciation and amortisations and portfolio amortisations. In addition, the EBIT contribution from joint ventures is replaced by the actual cash contribution from the joint venture.

Cash flow from joint ventures

The cash flow received by Intrum in form of distributions and dividends from investments in non-consolidated joint ventures.

Cash Income

Adjusted Income excluding non-cash income such as portfolio amortisation.

EBIT

EBIT consists of income less operating costs as shown in the income statement.

EBITDA

EBITDA is defined as EBIT adding back deprecation and amortisations of tangible and intangible assets.

Estimated remaining collections, ERC

The estimated remaining collections represent the nominal value of the expected future collection on the Group's portfolio investments, including Intrum's anticipated cash flows from investments in joint ventures.

Exchange rates in change of income

Change in income related to the effects of changes in exchange rates.

External Income

Income from Intrum's external clients and income generated from Real Estate Owned assets (REO).

Income

Consolidated income includes external servicing earnings (variable collection commissions, fixed collection fees, debtor fees, guarantee commissions, subscription earnings, etc.), earnings from portfolio investments operations (collected amounts less amortisation and revaluations for the period) and other earnings from financial services (fees and net interest from financing services).

Internal Income

Predominantly related to income paid by the Portfolio Investment segment to Credit Management Services and Strategic Markets segments for collection activities made on the behalf of Intrum's own portfolios.

Investing Capex Depolyed

The commitments to invest in portfolios of overdue receivables, with or without collaterals made in the reporting period. This includes real estates and investments in joint arrangements where the underlying assets are portfolio of receivables or/and properties.

Items affecting comparability

Significant items that impact comparability of key metrics are adjusted from IFRS reported numbers to provide more relevant information to external users. Items Affecting Comparability ("IAC") are based on three sub-groups: Group Restructurings ("Restructurings"), Non-Recurring Items ("NRIs") and Non-Cash Items ("NCIs"). Restructurings are costs relating to group-wide business transformation programs and M&A transactions. Incremental temporary incurred costs over and above anticipated net fixed costs are reported as an IAC. NRIs are one-off costs or income that weren't incurred in previous reporting periods and are not expected to recur in future reporting periods. An item that is part of core operations is not reported as an NRI irrespective how infrequent it could be occurring in business operations. For cash metrics, NCIs represent all valuation, estimates and provisions which are non-cash in nature and relates to future periods. For non-cash metrics, NCIs represent items that enhances periodic comparability, like adjustments to prospective accounting changes, measurement adjustments to match income and costs that are interconnected or recognition of partial impairment losses that relate to the current reporting period. NCI excludes normal working capital changes. NCIs could arise from Restructurings or NRIs.

Net Debt before Other Obligations

This includes Borrowings (including additional net obligations arising from connected currency or/and interest rate agreements), Lease Liabilities, Guarantees covering indebtedness of other persons and other obligations, Deferred Payments having an initial due date of more than 12 months, net of Cash and Cash Equivalents. It excludes Net Defined Benefit Liability, subordinated Shareholder Funding, Operating Liabilities (including Provisions), Contingent Liabilities and non-recourse indirect equity interests in certain co-investment vehicles.

Net Debt after Other Obligations

This includes Borrowings (including additional net obligations arising from connected currency or/and interest rate agreements), Lease Liabilities, Guarantees covering indebtedness of other persons and other obligations, Deferred Payments having an initial due date of more than 12 months, Net Defined Benefit Liabilities and 'non-recourse indirect equity interests in certain co-investment vehicles, net of Cash and Cash Equivalents. It excludes Operating Liabilities (including Provisions) and Contingent Liabilities.

Non-Investing Capex Deployed

The commitments to invest in non-current assets to maintain and grow the business excluding items included in Investing Capex Deployed.

Operating margin

The operating margin consists of operating earnings expressed as a percentage of income.

Operating margin, segment

The operating margin, segment consists of service line earnings expressed as a percentage of income.

Organic growth

Organic growth refers to the average increase in adjusted income in local currency, adjusted for the effects of acquisitions and divestments of Group companies. Organic growth is a measure of the development of the Group's existing operations that management has the ability to influence.

Portfolio investments – collected amounts, amortisations and revaluations

Portfolio investments consist of portfolios of delinquent consumer debts purchased at prices below the nominal receivable. These are recognised at amortised cost applying the effective interest method, based on a collection forecast established at the acquisition date of each portfolio. Income attributable to portfolio investments consist of collected amounts less amortisation for the period and revaluations. The amortisation represents the period's reduction in the portfolio's current value, which is attributable to collection taking place as planned. Revaluation is the period's increase or decrease in the current value of the portfolios attributable to the period's changes in forecasts of future collection.

Servicing segment: Capex Deployed

Investments made to maintain and grow the business. For example, IT and tangible assets.

REO

Real estate owned.

Return on Portfolio Investments (ROI)

Return on portfolio investments is the service line earnings for the period, excluding operations in factoring and payment guarantees (financial services), recalculated on a full-year basis, as a percentage of the average carrying amount of the balance-sheet item purchased debt. The ratio sets the segment's earnings in relation to the amount of capital tied up and is included in the Group's financial targets. The definition of average book value is based on using average values for the quarters. Year to date and RTM is calculated using the opening and closing balances of the quarters in the period.

RTM

Rolling Twelve Months, RTM, refers to figures on a last 12-month basis.

About Intrum

Intrum is the industry-leading credit management company in Europe with presence in 21 countries. We help companies prosper by offering solutions designed to improve cash flow as well as long-term profitability and by caring for their customers. Our focus is to create shared value for business and society, which both benefit from companies being paid on time and citizens getting out of debt. Intrum has around 11,000 dedicated professionals who serve around 80,000 companies across Europe. In 2023, the company generated income of SEK 20.0 billion. Intrum is headquartered in Stockholm, Sweden, and the Intrum AB (publ) share is listed on the Nasdaq Stockholm exchange. For further information, please visit www.intrum.com.

Business model

We ensure that companies are paid by offering a full range of services covering companies' entire credit management chain. In our Credit Management Services and Strategic Markets segments we act as agents, collect late payments on our clients' behalf and generate a commission. In our Portfolio Investments segment we act as principals and invest in portfolios of overdue receivables as well as similar claims and collect on our own behalf.

Intrum as an investment

Growing market – The market for our services is growing, supported by our clients' desire to manage their balance sheets, also aided by regulation, focus on their core businesses as well as ongoing NPL generation. Digitisation and changes in customer behaviour lead to new types of receivables being generated. This market backdrop is a strong foundation for sustainable organic growth.

Market-leading position – Intrum is the industry leader in Europe, with a presence in 21 countries. We also work with partners to cover approximately 160 countries across the world. Given our comprehensive footprint we can partner with clients across several markets. Our broad knowledge spans multiple industries and our scale enables us to invest in the newest technologies and innovative solutions.

A complete range – Intrum offers a complete range of credit management services, covering companies' complete credit management chain.

Considerable trust and 100 years of experience – Our work can only be performed if we have our clients' complete trust and conduct our operations ethically and with respect for the end-customer. Our 100 years of experience demonstrate the strength of our business model. We build long-term partnerships with our clients.

Intrum leads the way towards a sound economy – A functioning credit market is a prerequisite for the business community and consequently for society as a whole. Intrum plays an important role in this context.

Financial targets

External Servicing Adjusted Income Growth: ~10% CAGR Servicing Adjusted EBIT Margin: >25% Proprietaty Investing Book Value excl. Revaluation: SEK ~30bn Leverage: Net debt/Cash EBITDA 3.5x by end of 2025 For further details and definitions, see https://www.intrum.com/investors/financial-info/ financial-targets/

Financial calendar 2024

24 April 2024	Interim report for the first quarter
24 April 2024	Annual General Meeting
18 July 2024	Interim report for the second quarter
	23 October 2024 Interim report for the third quarter

Intrum AB (publ)

Sicklastråket 4, Nacka 105 24 Stockholm, Sweden Tel +46 8 546 10 200 Fax +46 8 546 10 211 www.intrum.com info@intrum.com