Intrum — Interim / Quarterly Report 2007

Nov 8, 2007

Intrum Justitia AB (publ) Stockholm, November 8, 2007 Corporate identity number: 556607-7581

Intrum Justitia discloses the following information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for public release on Thursday, November 8, 2007 at 7:00 a.m. CET.

Interim report January–September 2007

• Consolidated revenues for the third quarter 2007 amounted to SEK 792.5 M (725.6), an increase of 9.2 percent. Organic growth was 10.6 percent.
• Operating earnings (EBIT) increased by 10.1 percent to SEK 172.6 M (156.7). Operating earnings include write-ups and write-downs of purchased debt portfolios of SEK –2.5 M, net (+10.2). Excluding revaluations, operating earnings increased by 19.5 percent, corresponding to an operating margin of 22.0 percent (20.5).
• Net earnings for the third quarter increased by 11.3 percent to SEK 115.4 M (103.7).
• Earnings per share before dilution amounted to SEK 1.46 (1.30) for the quarter. For the first nine months earnings per share amounted to SEK 3.90 (3.24).
• Investments in Purchased Debt in the third quarter amounted to SEK 143.0 M (271.9). The return on purchased debt was 17.1 percent (18.9). For the first nine months the return on investments was 18.5 percent (15.7).

SEK M	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep	Full-year
unless indicated otherwise	2007	2006	2007	2006	2006
Revenues	792.5	725.6	2,337.2	2,142.1	2,939.6
Operating earnings (EBIT)	172.6	156.7	461.3	388.9	586.7
Operating margin, %	21.8	21.6	19.7	18.2	20.0
Earnings before tax	153.8	138.3	409.7	345.1	527.1
Net earnings	115.4	103.7	307.3	258.8	407.5
Earnings per share before dilution, SEK	1.46	1.30	3.90	3.24	5.09
Earnings per share after dilution, SEK	1.46	1.28	3.88	3.20	5.04
Current collection cases (million)	16.1	14.8	16.1	14.8	15.4

Michael Wolf

"Our achievements in the third quarter, with organic growth of 10.6 percent and improved profitability, including a 1.5 percent increase in the operating margin, excluding portfolio revaluations, provide further support for our financial objectives. We have had a good influx of new clients, and in important countries like Sweden and Finland efforts to boost sales from existing clients are producing results. For the second consecutive quarter the Poland, Czech Republic, Slovakia & Hungary region has significantly increased both revenues and earnings. The measures in England have not yet had a full impact on earnings, although we have succeeded in attracting new clients. Our understanding of consumers' payment habits is of great importance to the Credit Management service line, which is reporting good growth, at 7.3 percent. Purchased Debt continues to develop well, with revenue growth of 35 percent and a return of 17.1 percent. The strategic transformation of Intrum Justitia is progressing according to plan."

July–September 2007: Revenues and Earnings	Consolidated revenues during the third quarter amounted to SEK 792.5 M (725.6). The revenue increase of 9.2 percent includes organic growth of 10.6 percentage points, currency effects of 0.4 percentage points and –1.8 percentage points owing to portfolio write-downs. Operating earnings amounted to SEK 172.6 M (156.7). Operating earnings include a net write down of purchased portfolios of SEK –2.5 M (+10.2) and expenses of SEK 7.0 M to terminate the lease in Stratford-upon-Avon. Earnings before tax for the period rose by 11.2 percent to SEK 153.8 M (138.3), while net earnings for the period amounted to SEK 115.4 M (103.7). Excluding the revaluation, revenues amounted to SEK 795.0 M (715.4), an increase of 11.1 percent. Operating earnings amounted to SEK 175.1 M (146.5), an increase of 19.5 percent, equivalent to an operating margin of 22.0 percent (20.5).
January–September 2007: Revenues and Earnings	Consolidated revenues during the first nine months of 2007 amounted to SEK 2,337.2 M (2,142.1). The revenue increase of 9.1 percent includes organic growth of 9.8 percentage points, currency effects of –0.7 percentage points and 0.0 percentage points owing to portfolio revaluations. Operating earnings amounted to SEK 461.3 M (388.9). Earnings before tax for the period rose by 18.7 percent to SEK 409.7 M (345.1), while net earnings for the period amounted to SEK 307.3 M (258.8). Operating earnings for the period include a net write-up of purchased portfolios of SEK +9.7 M (+10.2). Excluding the revaluation, revenues amounted to SEK 2,327.5 M (2,131.9), an increase of 9.2 percent. Operating earnings amounted to SEK 451.6 M (378.7), an increase of 19.3 percent, equivalent to an operating margin of 19.4 percent (17.8).
	COMMENTS ON RESULTS AND SIGNIFICANT EVENTS DURING THE QUARTER
Geographic regions Sweden, Norway & Denmark	Regional revenues for the third quarter amounted to SEK 177.9 M (181.5). Operating earnings amounted to SEK 61.3 M (68.6). Revenues and earnings include a net revaluation of purchased portfolios of SEK 0.0 M (+18.7). Excluding this revaluation, revenues amounted to SEK 177.9 M (162.8), an increase of 9.3 percent. Operating earnings amounted to SEK 61.3 M (49.9), an increase of 22.8 percent, equivalent to an operating margin of 34.5 percent (30.7). An increase in successful marketing activities aimed at both old and new clients has led to a faster increase in revenues. This, coupled with the Swedish reorganization launched in the first quarter 2007, has positively affected the operating margin.
The Netherlands, Belgium & Germany	Regional revenues during the third quarter amounted to SEK 153.7 M (145.6). Operating earnings rose by 9.8 percent to SEK 29.1 M (26.5). Revenues and earnings include a net revaluation of purchased portfolios of SEK –1.8 M (+0.2). Excluding this revaluation, revenues amounted to SEK 155.5 M (145.4), an increase of 6.9 percent. Operating earnings amounted to SEK 30.9 M (26.3), an increase of 17.5 percent, equivalent to an operating margin of 19.9 percent (18.1). The entire region is developing positively. The Netherlands is meeting plans to expand capacity to handle more complex collection cases. During 2007, Germany has implemented several Swiss processes which have resulted in significant better success rate in collection. The Swiss production system will be introduced during 2008.
Switzerland, Austria & Italy	Regional revenues for the quarter amounted to SEK 104.7 M (100.2). Operating earnings rose by 5.8 percent to SEK 25.5 M (24.1). Revenues and earnings include a net revaluation of purchased portfolios of SEK 0.0 M (+0.7). Excluding this revaluation, revenues amounted to SEK 104.7 M (99.5), an increase of 5.2 percent. Operating earnings amounted to SEK 25.5 M (23.4), an increase of 9.0 percent, equivalent to an operating margin of 24.4 percent (23.5). Efforts to capitalize on synergies and economies of scale in various areas, so-called regionalization, are positively affecting revenues and earnings. Austria has been operational integrated with Switzerland.
France, Spain & Portugal	During the third quarter regional revenues amounted to SEK 124.8 M (95.5). Operating earnings rose by 116.1 percent to SEK 25.5 M (11.8). Revenues and earnings include a net revaluation of purchased portfolios of SEK –1.8 M (–10.9). Excluding this revaluation, revenues amounted to SEK 126.6 M (106.4), an increase of 19.0 percent. Operating earnings amounted to SEK 27.3 M (22.7), an increase of 20.3 percent, equivalent to an operating margin of 21.6 percent (21.3).
Finland, Estonia, Latvia & Lithuania	The region's revenues for the third quarter amounted to SEK 115.3 M (116.5). Operating earnings amounted to SEK 57.1 M (61.6). Revenues and earnings include a net revaluation of purchased portfolios of SEK +5.1 M (+20.8). Excluding this revaluation, revenues amounted to SEK 110.2 M (95.7), an increase of 15.2 percent, while operating earnings amounted to SEK 52.0 M (40.8), an increase of 27.5 percent, equivalent to an operating margin of 47.2 percent (42.6). The continuous efforts to broaden the client offering are an important contributor to the growth in the region.

United Kingdom & Ireland	Regional revenues for the quarter amounted to SEK 53.2 M (42.4). The operating deficit amounted to SEK –26.2 M (–28.4). Revenues and earnings include a net revaluation of purchased debt portfolios of SEK –10.2 M (–24.4). Earnings were also charged with SEK 7.0 M to terminate the lease on the office in Stratford-upon-Avon, which originally extended to 2012. By terminating the lease, future operating earnings will improve by SEK 1.2 M per quarter. Excluding the revaluation of purchased portfolios and lease termination, revenues amounted to SEK 63.4 M (66.8), a decrease of 5.1 percent. Operating deficit was SEK –9.0 M (–4.0). Despite that a restructuring program launched in the fourth quarter of 2005 has been successfully completed, reducing annual expenses by SEK 45 M, earnings remain below expectations. There has been a conscious strategy to take a cautious approach to new debt purchases. Moving forward this means that collections from older, profitable client volumes will be finalized at a faster rate than work with new volumes begin. Efforts in England to improve long-term profitability are progressing, and England is one of the priority countries for the introduction of the Group's best practices.
Poland, Czech Republic, Slovakia & Hungary	During the third quarter revenues amounted to SEK 62.9 M (43.9). Operating earnings rose by 106.3 percent to SEK 19.6 M (9.5). Revenues and earnings include a net revaluation of purchased debt portfolios of SEK +6.2 M (+5.1). Excluding this revaluation, revenues amounted to SEK 56.7 M (38.8), an increase of 46.1 percent. Operating earnings amounted to SEK 13.4 M (4.4), an increase of 204.5 percent, equivalent to an operating margin of 23.6 percent (11.3). The region has reported solid financial improvements in the last six months.
Service lines Credit Management	Service line revenues during the third quarter amounted to SEK 711.2 M (662.9). Operating earnings amounted to SEK 130.3 M (125.4), an increase of 3.9 percent, equivalent to an operating margin of 18.3 percent (18.9).
Purchased Debt	Service line revenues during the third quarter amounted to SEK 130.6 M (96.7), an increase of 35.1 percent. Operating earnings amounted to SEK 58.4 M (46.5). During the quarter the carrying amount of purchased debt was adjusted by a net of SEK –2.5 M (+10.2) due to changes in estimates of future cash flows. Excluding this revaluation, revenues amounted to SEK 133.1 M (86.5). Operating earnings amounted to SEK 60.9 M (36.3), equivalent to an operating margin of 45.8 percent (42.0). Revenues are being positively affected by the Group's increased rate of investment since 2005. In accordance with IFRS, Intrum Justitia applies an accounting model (the effective interest method) where the carrying amount of each debt portfolio, and thus quarterly earnings, is based on discounted future cash flows updated quarterly. The adjustments for the third quarter 2007 were as follows:
	SEK M	Jul–Sep	Jul–Sep	Jan–Sep	Jan–Sep
		2007	2006	2007	2006
	Sweden, Norway & Denmark	0.0	+18.7	+8.6	+18.7
	Netherlands, Belgium & Germany	–1.8	+0.2	–1.8	+0.2
	Switzerland, Austria & Italy	0.0	+0.7	0.0	+0.7
	France, Spain & Portugal	–1.8	–10.9	–1.8	–10.9
	Finland, Estonia, Latvia & Lithuania	+5.1	+20.8	+6.7	+20.8
	United Kingdom & Ireland	–10.2	–24.4	–10.6	–24.4
	Poland, Czech Republic, Slovakia & Hungary	+6.2	+5.1	+8.6	+5.1
	Total	–2.5	+10.2	+9.7	+10.2
	The adjustments are reported as part of the quarter's amortization, as a result of which revenues and operating earnings are affected correspondingly. This is because revenues in Purchased Debt are reported as the net of collected amounts less amortization. Investments in portfolios during the third quarter amounted to SEK 143.0 M (271.9). As of September 30 the Group's purchased debt portfolios had a carrying amount of SEK 1,369.5 M (1,075.2), an increase of 27.4 percent year-to-year. The carrying amount for portfolios purchased in the period January 1–September 30 2007 amounted to SEK 385.1M (479.8).
Depreciation/ amortization	Third-quarter operating earnings were charged with depreciation/amortization of SEK 22.3 M (20.6). Operating earnings before SEK 194.9 M (177.3). Other intangible fixed assets accounted in the balance sheet and attributable to revaluations to fair value in connection with acquisitions amounted to SEK 14.2 M (19.7) and were amortized by SEK 1.5 M (1.4) during the quarter.	depreciation/amortization		therefore	amounted to
Net financial items	Quarterly net financial items amounted to SEK –18.8 M (–18.4), including translation

differences of SEK +1.0 M (–2.4). The net interest expense is higher due to the higher net debt.

Tax	Quarterly earnings are taxed at a rate of 25 percent. The Group's tax expense is dependent in part on how earnings are distributed between subsidiaries in different countries with different tax rates. For 2007 and beyond, the estimated tax expense of 25 percent of pre-tax earnings is reiterated. This determination does not include the potential impact of legal proceedings that could be resolved before the end of the year, including the case involving tax loss carryforwards in Italy, which, in accordance with the European Court of Justice's so-called Marks & Spencer ruling, could further reduce the group's tax expense for 2007. In 2006 the Group's tax expense was reduced by SEK 11.1 M through a Group contribution from Sweden to Italy of SEK 39.7 M, where it was offset against tax loss carryforwards from previous years. In the company's opinion, the Group contribution is tax deductible in Sweden in accordance with the Marks & Spencer ruling. The company's interpretation of the EU rules was upheld in an advance ruling by the Swedish National Tax Board in March 2007. The Swedish tax authorities have appealed the ruling. The Group's companies have total tax loss carryforwards corresponding to SEK 426.6 M for which no deferred tax assets are reported.
Cash flow and investments	Cash flow from operating activities during the period January–September rose by 2.0 percent to SEK 348.6 M (341.7). Disbursements for investments in debt portfolios during the reporting period amounted to SEK 385.1 M (479.8). Investments in tangible and intangible fixed assets amounted to SEK 75.6 M (67.1) during the first nine months of the year. Income tax paid during the period exceeds the tax expense partly as a result of each country's due dates for preliminary taxes over the course of the year. For the full-year 2007 the Group's investments in tangible and intangible fixed assets are estimated at SEK 100–130 M, compared to SEK 106.1 M in 2006.
Financing	Net debt as of September 30, 2007 amounted to SEK 1,517.9 M, compared to SEK 1,464.5 M at year-end 2006. Shareholders' equity including minority interests amounted to SEK 1,645.5 M on September 30, 2007, against SEK 1,492.6 M on December 31, 2006. Minority interests have been reduced from SEK 32.8 M to SEK 0.1 M through the Group's acquisition of the minority shares in the holding company that owns the Group's operating companies in Poland, Czech Republic, Slovakia and Hungary. Through its international subsidiaries, the Group has significant net assets in currencies other than Swedish kronor. As a result of rising exchange rates, particularly for the euro, the Group's shareholders' equity was affected during the nine month period by exchange rate differences of SEK 26.0 M (–32.1). As of September 30, 2007 the Group had liquid assets of SEK 241.2 M, compared to SEK 217.4 M on December 31, 2006. Unutilized credit facilities amounted to SEK 244.0 M, compared to SEK 278.9 M on December 31, 2006.
Goodwill	Consolidated goodwill amounted to SEK 1,597.6 M, compared to SEK 1,524.4 M at year-end 2006. Of this increase, SEK 7.6 M is attributable to exchange rate differences, while SEK 65.6 M is due to the acquisition of the minority shares in Poland, Czech Republic, Slovakia and Hungary.
Human Resources	The average number of employees during the first nine months of 2007 was 2,969 (2,824). Compared to the previous year the number of employees increased during the quarter primarily in the regions the Netherlands, Belgium & Germany and France, Spain & Portugal and decreased in the regions United Kingdom & Ireland and Sweden, Norway & Denmark.
Employee Stock Option Program 2003/2009	The Group's Employee Stock Option Program 2003/2009, which was approved by the Annual General Meeting in 2003, provides 20 Group employees in senior positions an opportunity to acquire new shares at a strike price of SEK 54.60 per share during the period July 1, 2007– May 30, 2009. The cost of the option program, calculated according to the accounting recommendation IFRS 2 Share-based Payment and statement URA 46 from the Swedish Financial Accounting Standards Council's Emerging Issues Task Force, amounted to SEK 7.8 M (10.8) for the first nine months of the year, including SEK +2.4 M (–3.5) for the third quarter. The total cost during the vesting period, which expired at the end of the second quarter 2007, is estimated at SEK 40.1 M. An adjustment was made during the third quarter for the actual share price and actual social security costs when the options were exercised. During the quarter 1,133,600 new shares were subscribed through the exercise of the options, whereby the share capital increased from SEK 1,559,125.02 to SEK 1,581,797.02. Intrum Justitia continuously provides information on any increases in share capital resulting from employee stock options exercised in accordance with applicable rules. The dilution effect from the remaining options corresponds to 408,816 shares when calculating earnings per share.
Parent Company	The publicly listed parent company, Intrum Justitia 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 revenues of SEK 37.5 M (40.1) during the period and a pre-tax loss of SEK –34.4 M (–82.5). The improvement is due to dividends from subsidiaries of

	SEK 135.6 M (0.0). The parent company invested SEK 0.2 M (1.3) in fixed assets during the first nine months of the year and had liquid assets of SEK 0.0 M (0.0) and short-term investments of SEK 53.3 M (0.0) at September 30. The average number of employees was 24 (24).
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 the Annual Accounts Act for the parent company. These accounting principles are unchanged from those used in the preparation of the most recent annual report.
Significant risks and uncertainties	The risks faced by the Group and the parent company include operational risks related to several countries, the expansion of operations, national or EU regulations and economic fluctuations, which can impact anticipated collection results. There are also financial risks related to credit card guarantees, exchange rates and interest rate levels. The risks are described in more detail in the Board of Directors' report in Intrum Justitia's annual report 2006. No other significant risks are considered to have arisen besides those described in the annual report.
Market outlook (reaffirmed, published for the first time on February 15, 2007)	In the last five years consumer credits have grown by 5–7 percent and households and businesses have taken on more debt. From a short-term perspective there are no indications this trend will slow. Coupled with the introduction of the Basel II rules, this should create greater demand for professional credit management services. Intrum Justitia estimates that only 10 percent of the total market is currently outsourced to CMS professionals. Client needs are similar regardless of geographic market, and Intrum Justitia therefore believes its offering of services with a high information content will drive growth in outsourcing. In the Group's opinion, there are good opportunities for synergies by establishing uniform business models, processes and organizational structures.
The Intrum Justitia share	Intrum Justitia's market capitalization as of September 30, 2007 was SEK 7,929 M (5,534). During the period January 1–September 30, 2007 the share rose from SEK 88.75 to SEK 100.25, or by 13.0 percent, in addition to the dividend of SEK 2.75 per share. The number of shareholders on September 30, 2007 was 4,952 (4,716). Intrum Justitia AB (ticker: IJ) is listed on the Nordic Exchange, Mid Cap list.
Nomination Committee	Intrum Justitia AB's Annual General Meeting on April 25, 2007 resolved that the Chairman of the Board shall convene representatives of the five largest shareholders of the company at the end of the third quarter to form a Nomination Committee. Following contact with the company's six largest shareholders, the following five members have been nominated: • Árni Thorbjörnsson, Landsbanki Íslands (11.6 percent of capital and votes); • Christer Gardell, Cevian Capital (10.0 percent of capital and votes); • Jan Andersson, Swedbank Robur Funds (4.9 percent of capital and votes); • Björn Lind, SEB Funds (4.2 percent of capital and votes); and • Björn Fröling, Parkerhouse Investments (3.8 percent of capital and votes). The Nomination Committee represents a total of approximately 34.5 percent of the capital and votes in the company. The Nomination Committee will be chaired by one of its members. The tasks of the Nomination Committee and the guidelines for the appointment of its members are described on the company's website, www.intrum.com. Shareholders are welcome to submit their proposals and views to the Nomination Committee by November 30, 2007 by e-mail to agm@intrum.com. The Nomination Committee's proposal for Board of Directors will be presented in the notice of the Annual General Meeting 2008 and on the corporate website.
Annual General Meeting 2008	The Annual General Meeting will be held on Thursday, April 10, 2008, at 4 p.m. CET at the World Trade Center in Stockholm, Sweden.
	This interim report has been reviewed by the company's auditors.
	This Interim Report and other financial information are available at Intrum Justitia's website, www.intrum.com.
	Denna delårsrapport finns även på svenska.
	Stockholm, November 8, 2007
	Michael Wolf

President & Chief Executive Officer

Auditors' Review Report	To the Board of Directors of Intrum Justitia AB (publ), corp. identity no. 556607-7581 We have reviewed the interim report for Intrum Justitia AB (publ) as per September 30, 2007 and the nine-month period ending thereon. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
	Focus and scope of the review We conducted our review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Financial Information Performed by the Independent Auditors of the Entity. A review consists of making inquiries, primarily to persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden RS and other generally accepted auditing practices in Sweden. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed on the basis of an audit.
	Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared in accordance with IAS 34 and the Annual Accounts Act and, for the Parent Company, in accordance with the Annual Accounts Act.
		Stockholm November 8, 2007 KPMG Bohlins AB Carl Lindgren Authorized Public Accountant
Presentation of the Interim Report	The Interim Report and presentation material will be available at www.intrum.com > Investors. President & CEO Michael Wolf and CFO Monika Elling will comment on the report at an analyst meeting and telephone conference today at 9:00 a.m. CET. Location: Operaterrassen in Stockholm, Sweden. The presentation can also be followed at www.intrum.com and/or www.financialhearings.com. To participate by phone, call +44 20 7806 1968 or +46 8 5352 6458.
For further information, please contact	Michael Wolf, President & CEO Tel: +46 8 546 10 200	Intrum Justitia AB (publ) SE-105 24 Stockholm Sweden
	Monika Elling, Chief Financial Officer Tel: +46 8 546 10 201, mobile +46 705 120 201 Anders Antonsson, Investor Relations Tel: +46 8 546 10 206	Tel: +46 8 546 10 200, fax: +46 8 546 10 211 www.intrum.com E-mail: ir@intrum.com Swedish corporate identity no.: 556607-7581 Ticker symbols: IJ SS on Bloomberg IJ.ST on Reuters
Reporting dates	Mobile: +46 703 367 818 The Year-End Report for 2007 will be published on February 12, 2008. The Interim Report for the first quarter (Jan–March) 2008 will be published on April 23, 2008. The Interim Report for the second quarter (April–June) 2008 will be published on July 25, 2008.
About the Intrum Justitia Group	Intrum Justitia is Europe's leading Credit Management Services (CMS) company. Our offering covers every stage of these services, from credit information and invoicing through sales ledger services, reminders and collection to debt surveillance and collection of written-off receivables. We also work with purchased debt and specialized credit management services.

FINANCIAL REPORTS, pages 7–15

Intrum Justitia Group – Consolidated Income Statement

SEK M	July–September			January–September	Full-year
	2007	2006	2007	2006	2006
Revenues	792.5	725.6	2,337.2	2,142.1	2,939.6
Cost of sales	–463.1	–415.0	–1,370.5	–1,268.9	–1,705.9
Gross earnings	329.4	310.6	966.7	873.2	1,233.7
Sales and marketing expenses	–65.5	–64.2	–206.2	–190.3	–261.9
General and administrative expenses	–91.4	–89.9	–299.8	–294.5	–385.5
Participations in associated companies	0.1	0.2	0.6	0.5	0.4
Operating earnings (EBIT)	172.6	156.7	461.3	388.9	586.7
Net financial income/expenses	–18.8	–18.4	–51.6	–43.8	–59.6
Earnings before tax	153.8	138.3	409.7	345.1	527.1
Tax	–38.4	–34.6	–102.4	–86.3	–119.6
Net earnings for the period	115.4	103.7	307.3	258.8	407.5
Of which attributable to:
Parent company's shareholders	115.3	101.1	304.9	252.6	397.0
Minority interests	0.1	2.6	2.4	6.2	10.5
Net earnings for the period	115.4	103.7	307.3	258.8	407.5

Intrum Justitia Group – Data per Share / Number of shares

SEK	July–September		January–September		Full-year
	2007	2006	2007	2006	2006
Share price at end of period	100.25	72.00	100.25	72.00	88.75
Earnings per share before dilution	1.46	1.30	3.90	3.24	5.09
Earnings per share after dilution	1.46	1.28	3.88	3.20	5.04
Shareholders' equity (net asset value) b. dilution	20.80	17.21	20.80	17.21	18.73
Average number of shares before dilution, '000	78,735	77,956	78,216	77,956	77,956
Average number of shares after dilution, '000	79,150	78,898	78,625	78,898	78,795
Number of shares at end of period, '000	79,090	77,956	79,090	77,956	77,956

Operating earnings and margin, rolling 12 months

Intrum Justitia Group – Consolidated Balance Sheet

SEK M	September 30 2007	September 30 2006	December 31 2006
ASSETS
Intangible fixed assets
Capitalized expenditure for IT development and other intangibles	144.8	126.3	130.8
Goodwill	1,597.6	1,550.9	1,524.4
Total intangible fixed assets	1,742.4	1,677.2	1,655.2
Tangible fixed assets	79.8	78.3	80.7
Financial fixed assets
Shares and participations in associated companies and other
companies	14.4	5.9	5.5
Purchased debt	1,369.5	1,075.2	1,317.9
Deferred tax assets	41.5	27.5	39.4
Other long-term receivables	29.0	9.5	19.6
Total financial fixed assets	1,454.4	1,118.1	1,382.4
Total fixed assets	3,276.6	2,873.6	3,118.3
Current assets
Accounts receivable	271.3	249.9	252.0
Client funds	409.4	414.3	480.3
Tax assets	43.2	24.4	36.3
Other receivables	292.9	257.6	263.7
Prepaid expenses and accrued revenue	131.1	100.2	93.5
Cash and cash equivalents	241.2	190.7	217.4
Total current assets	1,389.1	1,237.1	1,343.2
TOTAL ASSETS	4,665.7	4,110.7	4,461.5

Intrum Justitia Group – Consolidated Balance Sheet

SEK M	September 30 2007	September 30 2006	December 31 2006
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Attributable to Parent Company's shareholders	1,645.4	1,341.4	1,459.8
Attributable to minority	0.1	28.1	32.8
Total shareholders' equity	1,645.5	1,369.5	1,492.6
Long-term liabilities
Liabilities to credit institutions	1,687.7	1,446.8	1,618.6
Other long-term liabilities	1.7	10.1	1.0
Provisions for pensions	34.9	37.3	34.3
Deferred tax liabilities	32.6	32.6	25.4
Other long-term provisions	0.0	2.0	2.1
Total long-term liabilities	1,756.9	1,528.8	1,681.4
Current liabilities
Liabilities to credit institutions	35.4	12.2	27.8
Client funds payable	409.4	414.3	480.3
Accounts payable	114.6	105.8	118.6
Income tax liabilities	49.7	60.9	78.1
Advances from clients	33.1	37.6	34.9
Other current liabilities	222.8	217.7	194.7
Accrued expenses and prepaid income	397.9	359.8	351.9
Other short-term provisions	0.4	4.1	1.2
Total current liabilities	1,263.3	1,212.4	1,287.5
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	4,665.7	4,110.7	4,461.5

The company is involved in tax disputes in Norway and Finland subsequent to tax audits in 2002–2003. In Norway, the company plans to appeal a taxation ruling from May 2007. In Finland, the courts initially ruled in the company's favor, but the state's tax agent has appealed. The disputed amounts, in excess of the amounts allocated by the company, are SEK 4.8 M in Norway and SEK 20.9 M in Finland. Fees and interest may be additional.

In 2006 the Group's tax expense was reduced by SEK 11.1 M through a Group contribution from Sweden to Italy of SEK 39.7 M, which was offset against tax loss carryforwards in previous years. In the company's opinion, the Group contribution is tax deductible in Sweden in accordance with the European Court of Justice's so-called Marks & Spencer ruling. The company's interpretation of the EU's rules was upheld in an advance ruling by the Swedish National Tax Board in March 2007. The Swedish tax authorities have appealed the ruling.

Intrum Justitia Group – Cash Flow Statement

SEK M		January–September	Full-year
	2007	2006	2006
Operating activities Operating earnings (EBIT)		388.9	586.7
Depreciation/amortization	461.3	61.8	80.8
Adjustment for expenses not included in cash flow	65.4	6.0	8.0
Interest received	5.3 10.4	8.7	14.3
Interest paid and other financial expenses	–48.8	–50.8	–69.2
Income tax paid	–132.8	–117.4	–164.5
Cash flow from operating activities before
changes in working capital	360.8	297.2	456.1
Changes in working capital	–12.2	44.5	7.6
Cash flow from operating activities	348.6	341.7	463.7
Investing activities
Purchases of tangible and intangible fixed assets	–75.6	–67.1	–106.1
Debt purchases	–385.1	–479.8	–869.7
Amortization of purchased debt	332.9	285.2	409.8
Purchases of shares in subsidiaries and other companies	–110.1	–2.0	–1.9
Other cash flow from investing activities	–9.4	0.0	–6.4
Cash flow from investing activities	–247.3	–263.7	–574.3
Financing activities
Borrowings and amortization	69.9	103.1	321.0
New share issues	61.9	—	—
Share dividend to parent company's shareholders	–214.4	–175.4	–175.4
Share dividend to minority owners	—	–8.7	–8.7
Cash flow from financing activities	–82.6	–81.0	136.9
Change in liquid assets	18.7	–3.0	26.3
Opening balance of liquid assets	217.4	198.5	198.5
Exchange rate differences in liquid assets	5.1	–4.8	–7.4
Closing balance of liquid assets	241.2	190.7	217.4

Intrum Justitia Group – Consolidated Statement of Changes in Shareholders' Equity

SEK M		2007___		2006_____
	Attributable to parent company's shareholders	Attributable to minority	Total	Attributable to parent company's shareholders	Attributable to minority	Total
Opening balance, January 1	1,459.8	32.8	1,492.6	1,284.5	31.6	1,316.1
Exchange rate differences Effect of employee stock option	25.4	0.6	26.0	–31.1	–1.0	–32.1
program New share issues in connection	7.8		7.8	10.8		10.8
with exercise of employee stock
option Acquisition from minority	61.9		61.9
shareholders		–35.7	–35.7			0.0
Share dividend	–214.4		–214.4	–175.4	–8.7	–184.1
Net earnings for the period	304.9	2.4	307.3	252.6	6.2	258.8
Closing balance, Sept. 30	1,645.4	0.1	1,645.5	1,341.4	28.1	1,369.5

Intrum Justitia Group – Quarterly Overview

	Quarter 3 2007	Quarter 2 2007	Quarter 1 2007	Quarter 4 2006	Quarter 3 2006
Revenues, SEK M	792.5	786.9	757.8	797.5	725.6
Operating earnings (EBIT), SEK M	172.6	147.7	141.0	197.8	156.7
Organic growth, %	10.6	11.7	7.2	6.7	3.1
Collection cases in stock, million	16.1	15.4	15.3	15.4	14.8
Total collection value, SEK billion	93.4	92.0	91.4	89.4	90.7

Intrum Justitia Group – Five-Year Overview

	2006	2005	2004	2003	20021
Revenues (SEK M)	2,939.6	2,823.2	2,740.5	2,864.6	2,774.9
Operating earnings, SEK M	586.7	503.6	430.6	–93.9	346.2
Earnings before tax, SEK M	527.1	472.2	394.2	–146.8	238.4
Net earnings, SEK M	407.5	333.6	323.4	–168.0	173.0
Earnings per share before dilution, SEK	5.09	3.84	3.68	–2.12	2.61
Interest coverage ratio, multiple	8.1	11.2	9.3	–1.5	3.0
Return on operating capital, %	21.5	22.3	21.6	6.0	20.5
Return on shareholders' equity, %	28.9	23.0	23.2	–13.0	16.8
Equity/assets ratio, %	33.5	31.8	42.3	33.7	41.1
Dividend, SEK	2.75	2.25	*	—	1.00
Average number of employees	2,954	2,863	2,945	2,870	2,661

* In 2005 a redemption offer allowed shareholders to redeem every twelfth share in Intrum Justitia AB for SEK 84 per share. In total, SEK 590,465,652 was distributed to the company's shareholders, corresponding to approximately SEK 6.95 per share.

¹Excluding the effect of the correction of accounting inaccuracies in England; the correction is accounted under items affecting comparability in 2003. Comparative figures for the years 2002–2003 are not restated to the International Financial Reporting Standards (IFRS). The largest difference relates to goodwill amortization, which in accordance with previous accounting rules was charged against earnings as follows: SEK 124.0 M for 2003 and SEK 126.7 M for 2002.

Intrum Justitia Group – Revenues by Region

SEK M		July–September	Change	January–September		Change
	2007	2006	%	2007	2006	%
Sweden, Norway & Denmark	177.9	181.5	–2.0	513.4	495.8	3.5
Netherlands, Belgium & Germany	153.7	145.6	5.6	458.1	429.5	6.7
Switzerland, Austria & Italy	104.7	100.2	4.5	314.8	296.9	6.0
France, Spain & Portugal	124.8	95.5	30.7	376.5	314.8	19.6
Finland, Estonia, Latvia & Lithuania	115.3	116.5	–1.0	319.9	297.0	7.7
United Kingdom & Ireland	53.2	42.4	25.5	190.4	182.8	4.2
Poland, Czech Republic, Slovakia &
Hungary	62.9	43.9	43.3	164.1	125.3	31.0
Total revenues	792.5	725.6	9.2	2 337.2	2 142.1	9.1

Intrum Justitia Group – Operating Earnings by Region

SEK M		July–September	Change		January–September	Change
	2007	2006	%	2007	2006	%
Sweden, Norway & Denmark	61.3	68.6	–10.6	156.8	149.1	5.2
Netherlands, Belgium & Germany	29.1	26.5	9.8	93.6	85.5	9.5
Switzerland, Austria & Italy	25.5	24.1	5.8	77.3	68.5	12.8
France, Spain & Portugal	25.5	11.8	116.1	80.7	59.0	36.8
Finland, Estonia, Latvia & Lithuania	57.1	61.6	–7.3	128.9	119.2	8.1
United Kingdom & Ireland Poland, Czech Republic, Slovakia &	–26.2	–28.4	—	–34.2	–50.4	—
Hungary	19.6	9.5	106.3	37.2	25.8	44.2
Participations in associated companies	0.1	0.2	–50.0	0.6	0.5	20.0
Central expenses	–19.4	–17.2	—	–79.6	–68.3	—
Total operating earnings	172.6	156.7	10.1	461.3	388.9	18.6

Operating earnings for service lines and regions are earnings less central marketing expenses.

Central expenses above include expenses allocated by service line but not by region.

Intrum Justitia Group – Operating Margin by Region

%	July–September		January–September
	2007	2006	2007	2006
Sweden, Norway & Denmark	34.5	37.8	30.5	30.1
Netherlands, Belgium & Germany	18.9	18.2	20.4	19.9
Switzerland, Austria & Italy	24.4	24.1	24.6	23.1
France, Spain & Portugal	20.4	12.4	21.4	18.7
Finland, Estonia, Latvia & Lithuania	49.5	52.9	40.3	40.1
United Kingdom & Ireland	–49.2	–67.0	–18.0	–27.6
Poland, Czech Republic, Slovakia & Hungary	31.2	21.6	22.7	20.6
Group total	21.8	21.6	19.7	18.2

Intrum Justitia Group – Revenues by Service Line

SEK M		July–September	Change		January–September	Change
	2007	2006	%	2007	2006	%
Credit Management	711.2	662.9	7.3	2,078.8	1,974.4	5.3
Purchased Debt	130.6	96.7	35.1	400.6	286.4	39.9
Elimination of inter-service line revenue	–49.3	–34.0	—	–142.2	–118.7	—
Total revenues	792.5	725.6	9.2	2,337.2	2,142.1	9.1

Intrum Justitia Group – Operating Earnings by Service Line

SEK M		July–September	Change	January–September		Change
	2007	2006	%	2007	2006	%
Credit Management	130.3	125.4	3.9	343.3	332.1	3.4
Purchased Debt	58.4	46.5	25.6	186.3	118.5	57.2
Participations in associated companies	0.1	0.2	–50.0	0.6	0.5	20.0
Central expenses	–16.2	–15.4	—	–68.9	–62.2	—
Total operating earnings	172.6	156.7	10.1	461.3	388.9	18.6

Operating earnings for service lines and regions are earnings less central marketing expenses.

Intrum Justitia Group – Operating Margin by Service Line
%		July–September	January–September
	2007	2006	2007	2006
Credit Management	18.3	18.9	16.5	16.8
Purchased Debt	44.7	48.1	46.5	41.4
Group total	21.8	21.6	19.7	18.2

Intrum Justitia Group – Additional Data

Key figures, percent unless indicated otherwise	July–September		January–September		Full-year
	2007	2006	2007	2006	2006
Revenue growth	9.2	2.9	9.1	3.8	4.1
Organic growth	10.6	3.1	9.8	3.0	4.3
Change in operating earnings	10.1	12.3	18.6	1.5	16.5
Change in earnings before tax	11.2	4.5	18.7	–4.3	11.6
Operating margin	21.8	21.6	19.7	18.2	20.0
Return on operating capital	21.9	24.2	20.1	20.0	21.5
Return on shareholders' equity	29.4	31.3	26.2	25.7	28.9
Return on purchased debt	17.1	18.9	18.5	15.7	14.4
Net debt, SEK M	1,517.9	1,306.6	1,517.9	1,306.6	1,464.5
Net debt/equity ratio	92.2	95.4	92.2	95.4	98.1
Equity/assets ratio	35.3	33.3	35.3	33.3	33.5
Interest coverage ratio, multiple	7.9	7.8	7.7	7.6	8.1
Collection cases in stock, million	16.1	14.8	16.1	14.8	15.4
Total collection value, SEK billion	93.4	90.7	93.4	90.7	89.4
Average number of employees	3,005	2,838	2,969	2,824	2,954

Definitions

Increases in revenues, operating earnings and earnings before tax refer to the percentage increase in each income-statement item year-to-year. Organic growth refers to the average increase in revenues in local currency, adjusted for revaluations of purchased debt portfolios and the effects of acquisitions and divestments of Group companies.

Consolidated revenues include variable collection commissions, fixed collection fees, debtor fees, guarantee commissions, subscription revenue and income from purchased debt operations. Income from purchased debt consists of collected amounts less amortization, i.e., the decrease in the portfolios' book value for the period.

Operating margin is operating earnings as a percentage of revenues.

Return on operating capital consists of operating earnings, recalculated on a full-year basis, divided by average operating capital. Operating capital consists of the sum of shareholders' equity including minority interests, interest-bearing liabilities and pension provisions less liquid assets and interest-bearing receivables.

Return on shareholders' equity is net earnings for the period attributable to the parent company's shareholders, recalculated on a full-year basis, as a percentage of average equity attributable to the parent company's shareholders.

Return on purchased debt is the service line's operating earnings for the period, recalculated on a full-year basis, as a percentage of the average reported value of the balance-sheet item purchased debt.

Net debt is interest-bearing liabilities and pension provisions less liquid assets and interest-bearing receivables.

Equity/assets ratio is shareholders' equity including minority interests as a percentage of total assets.

Interest coverage ratio is earnings after financial items plus financial expenses divided by financial expenses.

Intrum Justitia Group – Ownership structure

September 30, 2007
	Number of	Capital and
Total number of shares: 79,089,851	shares	votes, %
Landsbanki Íslands	9,129,784	11.6
Cevian Capital	7,841,678	10.0
Swedbank Robur funds	3,803,727	4.9
Lannebo funds	3,374,950	4.3
SEB funds	3,265,985	4.2
Parkerhouse Investments	3,000,000	3.8
Nordea funds	2,049,226	2.6
SHB/SPP funds	1,833,095	2.3
Länsförsäkringar funds	1,344,600	1.7
Harris Associates Fund	1,332,943	1.7
Total, ten largest shareholders	36,975,988	46.8

Swedish ownership accounted for 41.8 percent (institutional investors for 9.2 percentage points, equity funds 25.2 percentage points and individual investors 7.4 percentage points). Source: SIS Aktieägarservice

Intrum Justitia AB (parent company) – Income Statement

SEK M	July–September		January–September		Full-year
	2007	2006	2007	2006	2006
Revenues	13.1	12.6	37.5	40.1	34.2
Gross earnings	13.1	12.6	37.5	40.1	34.2
Sales and marketing expenses	–4.4	–3.2	–13.7	–11.5	–15.3
General and administrative expenses	–19.5	–26.5	–79.8	–79.7	–120.6
Operating earnings	–10.8	–17.1	–56.0	–51.1	–101.7
Net financial income/expenses	–35.5	–17.8	21.6	–31.4	–40.6
Earnings before tax	–46.3	–34.9	–34.4	–82.5	–142.3
Tax	15.1	9.8	47.6	23.1	39.9
Net earnings for the period	–31.2	–25.1	13.2	–59.4	–102.4

Intrum Justitia AB (parent company) – Balance Sheet

SEK M	September 30 2007	September 30 2006	December 31 2006
ASSETS
Fixed assets
Intangible fixed assets	2.0	2.0	2.6
Tangible fixed assets	0.6	0.5	0.6
Financial fixed assets	7,165.4	7,162.7	7,679.7
Total fixed assets	7,168.0	7,165.2	7,682.9
Current assets
Current receivables	1,450.8	2,131.4	1,878.6
Cash and bank balances	0.0	0.0	0.0
Short-term investments	53.3	0.0	18.7
Total current assets	1,504.1	2,131.4	1,897.3
TOTAL ASSETS	8,672.1	9,296.6	9,580.2
SHAREHOLDERS' EQUITY AND LIABILITIES
Total shareholders' equity	825.0	898.4	956.6
Long-term liabilities	7,390.3	7,283.0	7,556.1
Current liabilities	456.8	1,115.2	1,067.5
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	8,672.1	9,296.6	9,580.2