Intrum — Interim / Quarterly Report 2022

Jul 21, 2022

Interim report Second quarter, 2022

Second quarter, 2022

• Seasonally strong second quarter, with cash EBIT up 13 per cent from Q1 2022 and Q2 2021
• Cash EPS up 99 per cent from Q1 2022 and 61 per cent from Q2 2021
• Continued strong performance in Strategic Markets and Portfolio Investments with record high collections
• Significantly improved fundamentals and outlook for CMS
• Temporarily elevated leverage ratio due to strong investment quarter, dividend payment and adverse FX impact
• Results consistent with fully normalised seasonal pattern, expect a seasonally slow summer quarter and strong finish to the year
• In the second quarter cash EBIT increased to SEK 1,595 M (1,413), cash RoIC increased to 8.4 per cent (8.0) and cash earnings per share (cash EPS) increased to SEK 9.12 (5.67). Net earnings for the period amounted to SEK 734 M (810)
• Cash EBIT for Credit Management Services decreased to SEK 342 M (411) and the adjusted operating margin decreased to 19 per cent (23). The segment cash RoIC for the quarter was 7.0 cent (8.6)
• Cash EBIT for Strategic Markets increased to SEK 834 M (572) and the adjusted operating margin increased to 35 per cent (26). The segment cash RoIC for the quarter was 22.5 per cent (14.6)
• Cash EBIT for Portfolio Investments increased to SEK 1,065 M (925), cash RoIC was 10.3 per cent (10.3) and total portfolio investments for the quarter amounted to SEK 3,141 M (2,051)

							Rolling
		Second quarter			6 months		12 months	Full year
	Apr–June	Apr–June	Change	Jan–June	Jan–June	Change	July 2021–
SEK M, unless otherwise indicated	2022	2021	%	2022	2021	%	June 2022	2021
Revenues	4,879	4,424	10	9,357	8,625	8	18,521	17,789
Adjusted revenues	4,825	4,422	9	9,296	8,620	8	18,332	17,656
Operating earnings (EBIT)	1,561	1,563	0	2,884	3,094	-7	6,265	6,475
Adjusted operating earnings (EBIT)	1,701	1,594	7	3,173	3,126	2	7,061	7,014
Net earnings for the period	734	810	-9	1,356	1,597	-15	3,150	3,391
Earnings per share, SEK	5.50	6.48	-15	10.07	12.54	-20	23.40	25.88
Adjusted earnings per share, SEK	6.28	6.70	-6	11.62	12.76	-9	27.75	28.86
Cash EBITDA	3,408	2,966	15	6,443	5,678	13	13,075	12,310
Cash EBIT	1,595	1,413	13	3,004	2,778	8	6,569	6,343
Cash EPS, SEK	9.12	5.67	61	13.70	11.34	21	31.34	28.98
Cash RoIC, %	8.4	8.0	0.4 ppt	8.0	7.9	-0.1 ppt	9.0	8.9
Net debt/RTM cash EBITDA, x							4.0	3.9
Cash EBIT: Credit Management Services	342	411	-17	656	807	-19	1,489	1,640
Cash EBIT: Strategic Markets	834	572	46	1,562	1,217	28	3,354	3,009
Cash EBIT: Portfolio Investments	1,065	925	15	2,007	1,754	14	3,814	3,561
Total portfolio investments made	3,141	2,051	53	4,925	3,790	30	9,241	8,106
Carrying value of portfolio investments	41,869	35,629	18	41,869	35,629	18	41,869	38,231
Adjusted return on portfolio investments, (ROI), %	14	15	-1 ppt	14	15	-1 ppt	14	14

Seasonally strong quarter with record new sales

Seasonally strong second quarter with more to come in the second half of the year

During the second quarter we delivered on the previously communicated seasonal performance step-up, whilst also continuing to execute our transformation trajectory. Compared to the same quarter last year, we grew cash revenues by 12 per cent with all segments contributing positively. This continued performance improvement was even more visible in cash EBIT, up 13 per cent, and cash EPS, up 61 per cent over the same period. Our leverage ratio at 4.0 times is temporarily elevated due to a strong investment quarter, the dividend payment and adverse FX impact.

The second quarter saw record new servicing sales, with the value of new recurring contracts up more than 60 per cent compared to the same quarter last year. We won net 555 new medium and large clients. We are particularly encouraged that this commercial success is also geographically very broad based.

While the overall macroeconomic picture is increasingly unsettled, we continue to deliver on organic growth and transformation towards ONE Intrum with no visible adverse impact from the rising economic uncertainty.

We are well prepared to support our clients and capture increasing servicing opportunities

The second quarter saw a continued deterioration in the macroeconomic environment across Europe. Inflation continues to rise with consumer prices in the Euro area posting an annualised increase of 8.6 per cent. At the same time borrowing costs for households and businesses also sharply increased. Against this backdrop it is not surprising that consumer confidence in the EU continues to fall with households' outlook on their future financial situation hitting a record low in June. At the same time Stage 2 loans on banks' balance sheets continued to increase to 9.1 per cent at the end of the first quarter. Our recently published European Payment Report also indicates that businesses are expecting late payments to grow significantly in the coming months, following the rising inflation and interest rates. This picture is consistent with numerous client conversations pointing towards increasing new case inflows as well as an expanded need for our services going forward.

From a capacity and capability perspective and through our ongoing ONE Intrum program, we are ready to support our clients to help them resolve increasing volumes of late payments, finding equitable and sustainable solutions whilst returning customers to financial health.

Strong performance in Strategic Market and Portfolio Investments, improving fundamentals in CMS

Strategic Markets continue to perform strongly with both performance improvements as well as increasing assets under management (AuM) driving results. During the first half of the year, we increased AuM in Italy and Spain by a gross total of c. SEK 40 bn, highlighting the strength of our franchise.

Portfolio Investments outperformed the active forecast by 15 per cent in the second quarter. Payment plans continue their solid performance trajectory with settlements becoming somewhat more difficult to complete. This development is consistent with the eventual, gradual normalisation in outperformance to our historical range of 5 to 10 per cent compared to active forecast we have mentioned since the beginning of the year.

CMS continues to be affected by lower like-for-like inflows compared to 2019 and the onset of the pandemic, particularly in higher value financial services claims, impacting the second quarter results. However, also given significant commercial wins over the last 12 months, overall AuM, value of cases and number of cases at the end of the quarter are significantly up across key geographies. While the challenging macro environment described above is expected to negatively impact collectability, revenue conversion and costs, these factors are expected to be substantially outweighed by the larger AuM as well as increasing case inflows, driving profitability and margin improvements in due course.

Expect a slow summer quarter with a strong finish to the year

Looking forward we expect a seasonally slower summer quarter and a strong finish to the year in line with a fully normalised seasonality pattern. In the current turbulent environment Intrum's diversified and macro hedged business model delivers stability across the business cycle.

In Strategic Market, we foresee continued strong performance,

"We continue to deliver on organic growth and transformation"

particularly in the fourth quarter based on continued performance improvements and growing AuM. CMS is set to benefit from increasing new case inflows later in the year in the context of the more challenging macroeconomic environment and associated impact on consumer and small business finances. Portfolio Investments is also expected to perform well, including the above-mentioned normalised outperformance over time.

In the second half of the year, we expect a more moderate investment pace in light of increasing macro uncertainty, as well as a continued growth in cash EBITDA. This will become particularly evident in the fourth quarter where the leverage ratio is expected to be around 3.5 times, in line with our financial targets.

As always, we continue to execute our strategy of organic growth and ONE Intrum transformation with the full benefit realisation expected over the coming 18 months.

Stockholm, July 2022

Anders Engdahl President & CEO

Key financial metrics

Cash metrics

Cash metrics help us present a transparent view of performance for the business in which we operate. Our servicing business area is not capital intensive but in our investment business area we utilise capital in terms of our investments. These investments and our servicing activities generate cash revenues and require cash expenses. When adjusting for cash items like replenishment capex, other capex, cash net financials and cash tax, we have a performance measurement of cash return on invested capital (Cash RoIC) and cash earnings per share (Cash EPS) on a recurring basis.

Cash metrics are central to our financial targets set out at the Capital Markets Day in late 2020.

Financial targets

Returns: Cash RoIC >10% medium term Growth : Cash EPS > 10% p.a. on average medium term Leverage: Net debt/Cash EBITDA 2.5–3.5x by end of 2022 Shareholder remuneration: Absolute annual increase in dividend per share

Quarterly development

Q2 2022 was a seasonally strong quarter, in particular in Portfolio Investments and Strategic Markets, while CMS continues to be affected by lower like-for-like new case inflows compared to pre-pandemic levels. The leverage ratio is temporarily elevated due to a strong investment quarter, the dividend payment and adverse FX development.

In Q2 2022 cash revenues increased to SEK 6,266 M (5,591), cash EBITDA SEK 3,408 M (2,966) and cash EBIT to SEK 1,595 M (1,413). Cash EPS was SEK 9.12 (5.67), Cash RoIC stood at 8.4 (8.0) and leverage ratio at 4.0x (4.1x).

On a rolling 12-month basis cash revenues increased to SEK 23,433 M (21,990), cash EBITDA SEK 13,075 SEK (11,943) and cash EBIT to SEK 6,569 M (5,959). Cash EPS increased to SEK 31.34 (26.22), and cash RoIC increased to 9.0% (8.4).

Cash revenues, SEK M Cash revenues rolling 12 months,

Cash EBIT, SEK M Cash EBIT rolling 12 months, SEK M

Q 2 2021

Cash EPS, SEK M Cash EPS rolling 12 months, SEK M

Cash RoIC, % Cash RoIC rolling 12 months, %

Net Debt/RTM cash EBITDA

ONE Intrum

Transforming the operating model to reach full potential of scale and efficiency

Intrum has a solid foundation and proud heritage with over 80,000 clients across Europe, making us the market leader. However, the market we operate in is changing. To capture growth opportunities, we must act as ONE aligned company with modern IT infrastructure and a global operating model, adapting to current and future needs of our clients and customers. We will spend SEK 1 bn in the transformation to achieve SEK 1bn of net savings per annum.

As part of the transformation program, we are implementing ONE technology platform across all our markets and building a global operations footprint consisting of global front- and back-offices in Athens, Bucharest, Malaga, Mauritius, and Vilnius.

Through our ONE Intrum transformation program, we are establishing a simpler, more digital and scalable business model making us more agile, cost-efficient and data-driven. The ONE Intrum transformation program allows us not only to maintain our market leading position – but to further strengthen it.

ONE Intrum transformation remains fully on track

The ONE Intrum transformation continued at full speed in the second quarter. We are very proud with the progress across all initiatives, particularly our ability to continuously increase volumes benefitting from our global footprint. Our 4 global front offices are now serving 17 Intrum markets and 18 per cent of all calls. All 4 sites are ISO 27001 certified, and we have engaged Qualtrics as a customer survey provider covering both local and global agents in the markets now being served.

The new global operating platform is our largest collection system with 9.4 million cases, 25 per cent of all cases globally, across 7 markets. A milestone migration was achieved during the quarter as the first servicing cases were migrated in Spain. We also migrated our first cases from Germany and UK during the quarter.

At the end of Q2 2022, our full year run-rate savings realised from the transformation program are at SEK 172 M, well on track toward our target of SEK 1 bn of recurring benefits. The runrate savings are expected to decrease slightly during the coming months as we focus on further building up our global centers and ensuring proper knowledge transfer before increasing again towards the end of the year as we resize our local organisations.

We are very excited about the potential to apply advanced analytics and automation technology to our core operating processes and systems. We can already now see how our technology roadmap can bring substantial further benefits and savings above our stated targets as we continue into 2024 and beyond.

Budget accumulated (RHS) Actuals accumulated (RHS)

7 6 FTE cost-to-collect RTM, %

Planned vs. realised program savings, run-rate SEK M

Quarterly actuals RTM 21

5

4

Q 4 20 Q 1 21 Q 2

Like-for-like FTE cost-to-collect reduced by 20%

Q 3 21 Q 4 21 Q 1 22 Q 2 22 Q 3 22 Q 4 22 Q 1 23 Q 2 23 Q 3 23 Q 4 23

Segment overview

Credit Management Services, Strategic Markets and Portfolio Investments

Key figures, Q2 2022

	Credit Management	Strategic	Portfolio	Group
SEK M	Services	Markets	Investments	items	Group
Cash revenues	1,019	1,557	3,690	–	6,266
Reported segment earnings	272	556	1,498	-765	1,561
Depreciation and amortisation	46	244	2	57	350
Portfolio amortisation	–	–	1,329	–	1,329
Adjustment earnings from joint ventures	–	–	-88	–	-88
Adjustment cash flow from joint ventures	–	–	112	–	112
Items affecting comparability	30	50	-36	101	145
Cash EBITDA	348	851	2,816	-608	3,408
Replenishment capex	–	–	-1,751	–	-1,751
Other capex	-6	-17	–	-39	-62
Cash EBIT	342	834	1,065	-647	1,595
Cash financial items					-397
Cash tax normalised					-98
Recurring consolidated cash earnings					1,100
Average number of shares outstanding Cash EPS, SEK					121 9.12
Average invested capital	19,449	14,845	41,194	208	75,695
Cash RoIC, %	7.0	22.5	10.3	–	8.4
Revenues	1,579	1,683	2,303	-687	4,879
Items affecting comparability	–	–	-54	–	-54
Adjusted revenues	1,579	1,683	2,249	-687	4,825
Reported segment earnings	272	556	1,498	-765	1,561
Items affecting comparability	30	41	-32	101	140
Adjusted segment earnings	302	597	1,466	-664	1,701

Credit Management Services, Strategic Markets and Portfolio Investments, cont.

Key figures, Q2 2021

	Credit Management	Strategic	Portfolio	Group
SEK M	Services	Markets	Investments	items	Group
Cash revenues	1,012	1,315	3,265	–	5,591
Reported segment earnings	367	370	1,303	-477	1,563
Depreciation and amortisation	61	216	2	45	325
Portfolio amortisation	–	–	1,120	–	1,120
Adjustment earnings from joint ventures	–	–	-95	–	-95
Adjustment cash flow from joint ventures	–	–	50	–	50
Items affecting comparability	1	3	22	-23	3
Cash EBITDA	429	589	2,402	-454	2,966
Replenishment capex	–	–	-1,477	–	-1,477
Other capex	-18	-17	–	-41	-76
Cash EBIT	411	572	925	-495	1,413
Cash financial items					-368
Cash tax normalised					-361
Recurring consolidated cash earnings					685
Average number of shares outstanding					121
Cash EPS, SEK					5.67
Average invested capital	19,176	15,674	35,888	235	70,971
Cash RoIC, %	8.6	14.6	10.3	–	8.0
Revenues	1,572	1,416	2,098	-661	4,424
Items affecting comparability	–	–	-3	–	-3
Adjusted revenues	1,572	1,416	2,095	-661	4,422
Reported segment earnings	367	370	1,303	-477	1,563
Items affecting comparability	1	3	50	-23	31
Adjusted segment earnings	367	373	1,353	-499	1,594

Credit Management Services

Credit management with a focus on late payments and collections. This segment includes 21 of the 24 European countries in which Intrum maintains credit management operations.

		Second quarter			Full year
	Apr–June	Apr–June	Change	Jan–June	6 months Jan–June	Change
SEK M	2022	2021	%	2022	2021	%	2021
Cash revenues	1,019	1,012	1	2,072	2,050	1	4,102
Cash EBITDA	348	429	-19	671	840	-20	1,701
Other capex	-6	-18	-67	-15	-33	-55	-61
Cash EBIT	342	411	-17	656	807	-19	1,640
External revenues	1,019	1,012	1	2,072	2,050	1	4,102
Internal revenues	561	560	0	1,081	1,106	-2	2,197
Total revenues	1,579	1,572	0	3,153	3,156	0	6,299
Items affecting comparability	–	–	–	–	–	–	–
Adjusted revenues	1,579	1,572	0	3,153	3,156	0	6,299
Segment earnings	272	367	-26	536	718	-25	1,430
Items affecting comparability	30	1	n.m.	42	-1	n.m.	17
Adjusted segment earnings	302	367	-18	578	717	-19	1,447
KPI's
Average invested capital	19,449	19,176	1	19,263	19,074	1	19,103
Segment cash RoIC, %	7.0	8.6	-1.6 ppt	6.8	8.5	-1.7 ppt	8.6
Cash revenues change, %	1	-4		1	-6		-6
– thereof organic change, %	-3	-1		-3	-3		-4
– thereof exchange rates, %	4	-3		4	-3		-2
– thereof acquired growth, %	–	–		–	–		–
Operating margin, %	17	23	-6 ppt	17	23	-6 ppt	23
Adjusted operating margin, %	19	23	-4 ppt	18	23	-5 ppt	23

the lower like-for-like inflows compared to 2019 and the onset of the pandemic, particularly in higher value financial services claims. On average we are experiencing significant increases of lower balance, lower commission invoice claims where cash collections are higher but come at a lower margin. This and the slower recovery in financial services claims are currently offsetting underlying growth attributable to new contracts signed as well as driving cost to collect. However, also given the significant

During the second quarter, CMS continued to be affected by

commercial wins over the last 12 months, overall AuM, value of cases and number of cases at the end of the quarter are up significantly across key geographies. While the challenging macro environment is expected to negatively impact collectability, revenue conversion and costsm, these factors are expected to be substantially outweighed by the larger AuM as well as increasing case inflows, driving profitability and margin improvements later into the second half of 2022 as well as 2023.

Cash revenues increased by 1 per cent to SEK 1,019 M compared to Q2 2021 while cash EBITDA and EBIT decreased by 19 and 17 per cent respectively due to higher operating expenses in the segment. Cash return on invested capital was 7.0 per cent (8.6) for the quarter.

Credit Management Services, adjusted operating margin, % and segment cash RoIC, %

Credit Management Services, Cash EBIT, SEK M Cash EBIT rolling 12 months, SEK M

Strategic Markets

Credit management focusing on late payments and collections in Greece, Italy and Spain.

		Second quarter			Full year
	Apr–June	Apr–June	Change	Jan–June	6 months Jan–June	Change
SEK M	2022	2021	%	2022	2021	%	2021
Cash revenues	1,557	1,315	18	2,976	2,661	12	5,624
Cash EBITDA	851	589	44	1,589	1,246	28	3,080
Other capex	-17	-17	-4	-28	-29	-6	-72
Cash EBIT	834	572	46	1,562	1,217	28	3,009
External revenues	1,557	1,315	18	2,976	2,661	12	5,624
Internal revenues	126	101	25	225	189	19	387
Total revenues	1,683	1,416	19	3,201	2,851	12	6,011
Items affecting comparability	–	–	–	–	–		–
Adjusted revenues	1,683	1,416	19	3,201	2,851	12	6,011
Segment earnings	556	370	50	983	809	22	1,974
Items affecting comparability	41	3	n.m.	96	3	n.m.	251
Adjusted segment earnings	597	373	60	1,079	812	33	2,225
KPI's
Average invested capital	14,845	15,674	-5	14,782	15,686	-6	15,504
Segment cash RoIC, %	22.5	14.6	7.8 ppt	21.0	15.5	5.5 ppt	19.4
Cash revenues change, %	18	9		12	15		4
– thereof organic change, %	15	15		8	21		8
– thereof exchange rates, %	3	-6		4	-6		-4
– thereof acquired growth, %	–	–		–	–		–
Operating margin, %	33	26	7 ppt	30	28	2 ppt	33
Adjusted operating margin, %	35	26	9 ppt	33	28	5 ppt	37

Strategic Markets continued its strong performance trajectory in the second quarter with substantial improvements across all metrics compared to Q2 2021. We continue to improve performance and to add new third party volumes to our platforms with AuM in Italy and Spain increasing by a gross total of c. SEK 40 bn during the first half of the year. Despite the more challenging macroeconomic backdrop Strategic Markets continues to excel across all three markets. Regarding Spain, we have now started to offboard SAREB volumes with all transfers expected to be completed by the end of Q3. While this is expected to reduce revenues by c. 7 per cent in 2022, we do not foresee any meaningful impact to the expected profit contribution from Spain.

Cash revenues came in 18 per cent above the second quarter of 2021 at SEK 1,557 M, while cash EBITDA and cash EBIT increased by 44 and 46 per cent, respectively, highlighting the operating leverage inherent in our Strategic Markets business. Cash RoIC was 22.5 per cent (14.6) for the quarter.

Strategic Markets, adjusted operating margin, % and segment cash RoIC, %

Strategic Markets, Cash EBIT, SEK M Cash EBIT rolling 12 months, SEK M

Portfolio Investments

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

		Second quarter 2022					Second quarter 2021
	Overdue		Financial	Joint	Segment	Overdue		Financial	Joint	Segment
SEK M	receivables	REO	services	ventures	total	receivables	REO	services	ventures	total
Cash revenues	3,460	44	74	112	3,690	3,109	68	38	50	3,265
Cash EBITDA	2,657	5	42	112	2,816	2,327	7	18	50	2,402
Replenishment capex	-1,751	–	–	–	-1,751	-1,477	–	–	–	-1,477
Cash EBIT	907	5	42	112	1,065	849	7	18	50	925
Total revenues	2,184	44	74	–	2,303	1,992	68	38	–	2,098
Items affecting comparability	-54	–	–	–	-54	-3	–	–	–	-3
Adjusted segment revenues	2,131	44	74	–	2,249	1,989	68	38	–	2,095
Segment earnings	1,380	3	26	88	1,497	1,209	-19	18	95	1,303
Items affecting comparability	-54	2	16	4	-32	-3	25	–	27	50
Adjusted segment earnings	1,326	5	42	92	1,465	1,206	6	18	122	1,353
KPI's
Average invested capital	33,544	321	704	6,626	41,194	29,142	371	521	5,854	35,888
Segment cash RoIC, %	10.8	6.6	24.0	6.7	10.3	11.7	7.3	14.1	3.4	10.3
Total portfolio investments made	3,131	11	–	–	3,141	1,739	32	–	280	2,051
Money-on-money multiple (RTM)	1.98	–	–	–	1.98	2.10	–	–	–	2.10
Book value	34,827	310	–	6,732	41,869	29,300	347	–	5,983	35,629
ERC	72,291	385	–	9,300	81,976	61,459	390	–	7,258	69,107
Cost to collect, paid %	23	94	–	–	24	25	127	–	–	27
Amortisation ratio, %	38	–	–	–	38	36		–	–	36
Operating margin, %	63	6	35	–	65	61	-28	47	–	62
Adjusted operating margin, %	62	11	56	–	65	61	9	47	–	65
Return on portfolio	16	3	–	5	15	17	-20	–	6	15
investments, ROI, %
Adjusted return on portfolio	16	6	–	6	14	17	6	–	8	15
investments, ROI, %

Portfolio Investments, Adjusted return, %, Cash RoIC, %

Portfolio Investments, Cash EBIT, SEK M Cash EBIT rolling 12 months, SEK M

In Portfolio Investments we saw record high collections with strong collection performance at 15 per cent above active forecast for the second quarter. Payment plans continue their solid performance trajectory with settlements becoming somewhat more difficult to complete. This development is consistent with the eventual gradual normalisation in outperformance to our historical range of 5 to 10 per cent compared to active forecast we have mentioned since the beginning of the year.

The second quarter was also a strong quarter from a new investment perspective with SEK 3,141 M (2,051) deployed. In the context of a more challenging macroeconomic backdrop we have focused on portfolios offering a good risk adjusted return based on high cash conversion due to existing payers. While such portfolios typically come with lower headline returns and money on money multiples, they are also less sensitive to macro factors such as changes in inflation and employment thus offering good protection in the current environment. In the second half of the year, we expect a more moderate investment pace in light of increasing macro uncertainty.

During the quarter we collected SEK 3,459 M, up 11 per cent compared to the same quarter last year. Cash EBITDA for the segment was SEK 2,816 M and cash EBIT was SEK 1,065 M, up 17 per cent and 15 per cent, respectively, compared to the second quarter 2021. Cash RoIC was 10.3 per cent (10.3) for the quarter.

		6 months 2022				6 months 2021
	Overdue		Financial	Joint	Segment	Overdue		Financial	Joint	Segment
SEK M	receivables	REO	services	ventures	total	receivables	REO	services	ventures	total
Cash revenues	6,595	93	123	200	7,011	5,851	102	82	93	6,129
Cash EBITDA	5,026	9	68	200	5,303	4,346	9	43	93	4,491
Replenishment capex	-3,296	–	–	–	-3,296	-2,736	–	–	–	-2,736
Cash EBIT	1,730	9	68	200	2,007	1,609	9	43	93	1,754
Total revenues	4,093	93	123	–	4,309	3,729	102	82	–	3,913
Items affecting comparability	-61	–	–	–	-61	-5	–	–	–	-5
Adjusted segment revenues	4,033	93	123	–	4,249	3,724	102	82	–	3,908
Segment earnings	2,522	4	50	215	2,790	2,222	-21	42	290	2,533
Items affecting comparability	-61	5	18	4	-34	-5	28	–	29	53
Adjusted segment earnings	2,461	8	68	219	2,755	2,217	7	42	320	2,586
KPI's
Average invested capital	32,707	321	661	6,553	40,241	28,731	379	495	5,675	35,280
Segment cash RoIC, %	10.6	5.9	20.7	6.1	10.0	11.2	4.7	17.4	3.3	9.9
Total portfolio investments made	4,819	106	–	–	4,925	3,241	69	–	480	3,790
Money-on-money multiple (RTM)	1.98	–	–	–	1.98	2.10	–	–	–	2.10
Book value	34,827	310	–	6,732	41,869	29,300	347	–	5,983	35,629
ERC	72,291	385	–	9,300	81,976	61,459	390	–	7,258	69,107
Cost to collect, paid %	24	96	–	–	25	26	121	–	–	27
Amortisation ratio, %	39	–	–	–	39	36		–	–	36
Operating margin, %	62	4	41	–	65	59	-21	51	–	65
Adjusted operating margin, %	61	9	55	–	65	60	7	51	–	66
Return on portfolio investments, ROI, %	15	2	–	7	14	15	-11	–	10	14
Adjusted return on portfolio investments, ROI, %	15	5	–	7	14	15	4	–	11	15

Financial overview

Alternative P&L

		Second quarter		6 months	Rolling 12 months		Full year
	Apr–June	Apr–June	Jan–June	Jan–June	July 2021–
SEK M	2022	2021	2022	2021	June 2022	2021	2020	2019
External revenues	2,695	2,433	5,254	4,898	10,504	10,148	10,082	9,191
– thereof Credit Management Services	1,019	1,012	2,072	2,050	4,124	4,102	4,375	4,736
– thereof Strategic Markets	1,557	1,315	2,976	2,661	5,939	5,624	5,409	4,180
– thereof Others	119	107	206	187	441	422	298	275
Gross cash collections	3,459	3,108	6,604	5,848	12,574	11,818	10,957	10,772
Cash flow from joint ventures	112	50	200	93	355	248	338	197
Cash revenues	6,266	5,591	12,058	10,840	23,433	22,215	21,377	20,160
Cash expenses	-2,858	-2,625	-5,616	-5,162	-10,359	-9,905	-9,770	-9,504
– thereof personnel	-1,506	-1,414	-3,012	-2,818	-5,778	-5,584	-5,434	-5,215
– thereof non-personnel	-1,352	-1,211	-2,604	-2,344	-4,581	-4,321	-4,336	-4,289
Cash EBITDA	3,408	2,966	6,443	5,678	13,075	12,310	11,607	10,656
Replenishment capex	-1,751	-1,477	-3,296	-2,736	-6,214	-5,654	-5,355	-5,339
Other capex	-62	-76	-143	-163	-294	-314	-672	-699
Cash EBIT	1,595	1,413	3,004	2,778	6,569	6,343	5,580	4,618
Cash financial items	-397	-368	-1,037	-967	-2,083	-2,013	-1,974	-1,875
Cash tax normalised	-98	-361	-313	-440	-701	-828	-474	-802
Recurring consolidated cash earnings	1,100	685	1,654	1,371	3,785	3,502	3,133	1,941
Average number of shares outstanding	121	121	121	121	121	121	124	131
Cash EPS, SEK	9.12	5.67	13.70	11.34	31.34	28.98	25.28	14.81

Key balance sheet items

		Second quarter		6 months	Rolling 12 months		Full year
	Apr–June	Apr–June	Jan–June	Jan–June	July 2021–
SEK M	2022	2021	2022	2021	June 2022	2021	2020	2019
Total portfolio investments made	3,141	2,051	4,925	3,790	9,241	8,106	5,129	7,556
Carrying value of portfolio investments	41,869	35,629	41,869	35,629	41,869	38,231	33,305	35,429
ERC	81,976	69,107	81,976	69,107	81,976	74,337	65,457	64,995
– thereof overdue receivables	72,291	61,459	72,291	61,459	72,291	64,901	58,490	55,311
– thereof joint ventures	9,300	7,258	9,300	7,258	9,300	9,047	6,288	6,539
– thereof REO	385	390	385	390	385	389	689	382
Net debt
Liabilities to credit institutions	8,472	3,851	8,472	3,851	8,472	4,060	2,081	6,186
Bond loans	46,218	44,027	46,218	44,027	46,218	44,443	43,706	41,644
Provisions for pensions	356	378	356	378	356	329	381	387
Commercial paper	2,069	3,724	2,069	3,724	2,069	3,998	2,916	2,794
Cash and cash equivalents	-4,903	-2,672	-4,903	-2,672	-4,903	-4,553	-2,134	-1,906
Net debt at end of period	52,213	49,309	52,213	49,309	52,213	48,277	46,951	49,105
Net debt/RTM cash EBITDA					4.0	3.9	4.0	4.3

Adjusted Group figures

				Rolling 12
		Second quarter		6 months		months Full year
	Apr–June	Apr–June	Jan–June	Jan–June	July 2021–
SEK M	2022	2021	2022	2021	June 2022	2021
Items affecting comparability by earnings
statement line
Positive revaluations of portfolio investments	426	468	680	786	1,683	1,789
Negative revaluations of portfolio investments	-372	-466	-619	-781	-1,494	-1,656
Cost of sales	-89	-29	-160	-30	-429	-299
Sales, marketing and administration costs	-101	23	-185	23	-292	-84
Items affecting comparability joint ventures	-4	-27	-4	-29	-263	-288
Total items affecting comparability in	-140	-31	-288	-32	-794	-538
operating earnings
Other items affecting comparability by
segment
Credit Management Services	-30	-1	-42	1	-60	-17
Strategic Markets	-41	-3	-96	-3	-344	-251
Portfolio Investments	32	-50	34	-53	-98	-185
Common costs	-101	23	-185	23	-293	-85
Total other items affecting comparability	-140	-31	-288	-32	-794	-538
Adjusted revenues
Revenues	4,879	4,424	9,357	8,625	18,521	17,789
Items affecting comparability	-54	-3	-61	-5	-189	-133
Adjusted revenues	4,825	4,422	9,296	8,620	18,332	17,656
Adjusted EBIT
EBIT	1,561	1,563	2,884	3,094	6,265	6,475
Items affecting comparability	140	31	288	32	794	538
Total adjusted EBIT	1,701	1,594	3,173	3,126	7,061	7,014
Adjusted earnings per share
Net earnings for the period attributable to	663	786	1,216	1,516	2,827	3,127
parent company's shareholders
Items affecting comparability attributable to the	95	24	188	25	524	361
parent company's shareholders adjusted for tax
Average number of outstanding shares	121	121	121	121	121	121
Adjusted earnings per share, SEK	6.28	6.70	11.62	12.76	27.75	28.86

		Second quarter		6 months	Rolling 12	months Full year
	Apr–June	Apr–June	Jan–June	Jan–June	July 2021–
SEK M	2022	2021	2022	2021	June 2022	2021
Portfolio Investments segment earnings
excluding items affecting comparability
Portfolio Investments segment earnings	1,471	1,285	2,741	2,491	5,188	4,938
Items affecting comparability for investments	-48	50	-52	53	80	185
Portfolio Investments segment earnings	1,423	1,335	2,689	2,544	5,267	5,122
excluding items affecting comparability
Average carrying value
Average carrying value receivables	33,544	29,142	32,707	28,731	31,411	29,423
Average carrying value joint ventures	6,626	5,854	6,553	5,675	6,332	5,893
Average carrying value real estate	321	371	322	379	325	353
Total average carrying value	40,491	35,367	39,581	34,785	38,068	35,670
Return including items affecting comparability	15	15	14	14	14	14
Return excluding items affecting	14	15	14	15	14	14
comparability
Cash EBITDA
EBIT	1,561	1,563	2,884	3,094	6,265	6,475
Depreciation and amortisation	350	325	740	651	1,589	1,500
Portfolio amortisation	1,329	1,120	2,562	2,127	4,745	4,310
Portfolio revaluations	-54	-3	-61	-5	-189	-133
Adjustments according to loan covenants:
Adjustment earnings from joint ventures	-88	-95	-215	-290	-216	-293
Adjustment cash flow from joint ventures	112	50	200	93	355	248
Items affecting comparability excluding	203	33	337	36	790	489
portfolio revaluations
Items affecting comparability joint ventures	-4	-27	-4	-29	-263	-288
Cash EBITDA	3,408	2,966	6,443	5,678	13,075	12,310

Revenues by type

		Second quarter		6 months	Full year
	Apr–June	Apr–June	Change	Jan–June	Jan–June	Change
SEK M	2022	2021	%	2022	2021	%	2021
External servicing revenues	2,576	2,327	11	5,048	4,711	7	9,726
Gross cash collections	3,459	3,108	11	6,604	5,848	13	11,818
Other Portfolio Investments segment	119	107	11	206	187	10	423
revenues
Cash flow from joint ventures	112	50	124	200	93	115	248
Cash revenues	6,266	5,591	12	12,058	10,840	11	22,215
Portfolio amortisation	-1,329	-1,120	19	-2,562	-2,127	20	-4,311
Portfolio revaluations	54	3	n.m.	61	5	n.m.	133
Adjustment cash flow from joint	-112	-50	124	-200	-93	115	-248
ventures
Total revenues	4,879	4,424	10	9,357	8,625	8	17,789

Items affecting comparability in operating earnings

	Second quarter		6 months		Full year
	Apr–June	Apr–June	Jan–June	Jan–June
SEK M	2022	2021	2022	2021	2021
Positive revaluations of portfolio investments	426	468	680	786	1,789
Negative revaluations of portfolio investments	-372	-466	-619	-781	-1,656
Items affecting comparability joint ventures	-4	-27	-4	-29	-288
Items affecting comparability depreciation and amortisations	9	–	-13	–	-179
Transformation program	-115	–	-237	–	-73
Other items affecting comparability	-84	-6	-95	-7	-132
Total items affecting comparability in operating earnings	-140	-31	-288	-32	-538

Change in revenues

	Second quarter			6 months	Full year
	Apr–June	Apr–June	Jan–June	Jan–June
Change in revenues, %	2022	2021	2022	2021	2021
Organic growth	6	19	4	17	8
Acquired growth	–	–	–	–	–
Portfolio revaluations	1	–	1	9	1
Exchange rates	3	-5	3	-6	-3
Total	10	14	8	19	6

Net financial items specification

		Second quarter			6 months		Full year
	Apr–June	Apr–June	Change	Jan–June	Jan–June	Change
SEK M	2022	2021	%	2022	2021	%	2021
Interest earnings	15	7	106	27	11	140	22
Interest costs	-537	-448	20	-1,023	-891	15	-1,832
Interest cost on leasing liability according to IFRS 16	-8	-10	-19	-17	-19	-13	-37
Exchange rate differences	-16	2	n.m.	-14	4	n.m.	-11
Amortisation of borrowing costs	-24	-25	-2	-49	-49	-1	-103
Commitment fee	-30	-37	-19	-68	-76	-11	-153
Other financial items	-20	-7	184	-1	-13	-89	-60
Total net financial items	-620	-517	20	-1,146	-1,034	11	-2,174

Group overview

Yearly overview, Group

SEK M	2021	2020	2019	2018	2017
Revenues	17,789	16,848	15,985	13,442	9,434
Adjusted revenues	17,656	16,731	15,780	13,131	9,437
EBIT	6,475	4,695	2,060	3,978	2,728
Adjusted EBIT	7,014	5,738	6,208	4,500	3,128
Net earnings	3,391	2,078	–285	1,943	1,503
Earnings per share, SEK	25.88	15.18	–2.76	14.18	14.62
Return on equity, %	15	9	–2	8	11
Equity per share, SEK	183.33	154.28	168.12	195.16	170.59
Cash flow from operating activities per share, SEK	83.11	68.64	48.77	48.10	–
Average number of employees (FTEs)	9,694	9,379	8,766	7,910	6,293

Quarterly overview, Group

	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3
SEK M	2022	2022	2021	2021	2021	2021	2020	2020
Cash revenues	6,266	5,792	6,053	5,322	5,591	5,249	5,601	5,549
Cash EBITDA	3,408	3,035	3,726	2,906	2,966	2,712	3,124	3,142
Cash EBIT	1,595	1,409	2,171	1,394	1,413	1,365	1,523	1,659
Cash EPS, SEK	9.12	4.58	13.93	3.68	5.67	5.68	9.00	5.88
Revenues	4,879	4,478	4,870	4,294	4,424	4,200	5,109	4,521
Adjusted revenues	4,825	4,471	4,853	4,183	4,422	4,198	4,359	4,520
Operating earnings (EBIT)	1,561	1,323	2,040	1,341	1,563	1,531	1,200	1,688
Adjusted EBIT	1,701	1,471	2,355	1,533	1,594	1,532	1,611	1,687
Net earnings	734	622	1,251	541	810	787	576	864
Earnings per share, SEK	5.50	4.57	8.98	4.33	6.48	6.06	3.40	6.97
Return on equity, %	12	10	20	11	16	15	8	16
Equity per share, SEK	186.20	188.25	183.38	168.72	162.54	171.12	158.05	166.15
Cash flow from operating activities per share, SEK	18.27	16.30	26.54	24.08	17.40	14.88	11.75	17.54
Average invested capital	75,695	73,299	72,224	71,405	70,971	69,578	70,057	71,565
Cash RoIC , %	8.4	7.7	12.0	7.8	8.0	7.8	8.7	9.3
Number of employees (FTEs)	9,920	9,750	9,664	9,733	9,786	9,626	9,458	9,446

Segment overview

Credit Management Services

	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3
SEK M	2022	2022	2021	2021	2021	2021	2020	2020
Cash revenues	1,019	1,054	1,056	996	1,012	1,038	1,099	1,089
Cash EBIT	342	314	437	396	411	396	281	495
Revenues	1,579	1,574	1,602	1,541	1,572	1,585	1,664	1,647
– thereof external clients	1,019	1,054	1,056	996	1,012	1,038	1,099	1,089
– thereof intercompany	561	520	546	545	560	546	565	559
revenues
Adjusted revenues	1,579	1,574	1,602	1,541	1,572	1,585	1,664	1,647
Segment earnings	272	264	355	356	367	352	328	482
Adjusted segment earnings	302	276	374	356	367	350	328	482
Items affecting comparability	30	12	19	–	-1	–2	–	–
Adjusted operating margin, %	19	18	23	23	23	22	20	29
Average invested capital	19,449	19,078	19,089	19,174	19,176	18,970	19,093	19,302
Segment cash RoIC, %	7.0	6.6	9.2	8.3	8.6	8.4	5.9	10.3

Strategic Markets

			Quarter 3		Quarter 1	Quarter 4	Quarter 3
2022	2022	2021	2021	2021	2021	2020	2020
1,557	1,418	1,802	1,160	1,315	1,346	1,461	1,637
834	728	1,310	482	572	645	875	819
1,683	1,517	1,903	1,257	1,416	1,434	1,558	1,738
1,557	1,418	1,802	1,160	1,315	1,346	1,461	1,637
126	99	101	97	101	88	97	101
1,683	1,517	1,903	1,257	1,416	1,434	1,558	1,738
556	427	901	265	370	439	585	515
597	482	1,142	271	373	439	691	515
41	55	242	-6	-3	–	106	–
35	32	60	22	26	31	44	30
14,845	14,719					16,126	16,582
22.5	19.8	34.7	12.4	14.6	16.4	21.7	19.8
			Quarter 2 Quarter 1 Quarter 4	15,118	Quarter 2 15,526	15,674	15,699

Q2 in brief Comment by the President and CEO Key financial metrics ONE Intrum Segment overview Financial overview Financial reports Other information Definitions About Intrum Intrum Interim report, second quarter 2022 15

Portfolio Investments

	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3
SEK M	2022	2022	2021	2021	2021	2021	2020	2020
Cash revenues	3,690	3,320	3,195	3,166	3,265	2,864	3,041	2,823
Cash EBITDA	2,816	2,486	2,375	2,350	2,402	2,089	2,243	2,065
Cash EBIT	1,065	942	901	907	925	830	834	748
Gross cash collections	3,459	3,145	3,008	2,961	3,108	2,740	2,937	2,700
Portfolio amortisation	-1,329	-1,233	-1,111	-1,072	-1,120	-1,007	-1,063	-972
Portfolio revaluation	54	7	17	112	3	2	599	1
Other Portfolio Investments	119	87	98	138	107	80	76	66
segment revenues
Revenues	2,303	2,006	2,012	2,138	2,098	1,816	2,549	1,795
Segment earnings	1,497	1,293	1,312	1,198	1,303	1,231	751	1,094
Adjusted segment earnings	1,465	1,290	1,337	1,305	1,353	1,234	1,063	1,093
Portfolio investments	3,131	1,689	2,683	1,420	1,739	1,503	1,258	837
Total carrying value of portfolio investments	41,869	39,113	38,231	36,179	35,629	35,104	33,305	34,940
– thereof purchased receivables	34,827	32,262	31,478	29,840	29,300	28,984	27,658	27,966
– thereof joint ventures	6,732	6,520	6,438	6,013	5,983	5,726	5,266	6,557
– thereof real estate	310	331	315	326	347	394	381	416
Adjusted return on portfolio investments, ROI, %	14	13	14	14	15	14	12	12
Amortisation ratio, %	38	39	37	36	36	37	36	36
ERC	81,976	76,092	74,337	70,322	69,107	68,263	65,467	64,393
Replenishment capex	-1,751	-1,545	-1,474	-1,443	-1,477	-1,259	-1,409	-1,317
Money-on-money multiple (RTM)	1.98	2.04	2.04	2.05	2.10	2.18	2.08	2.05
Average invested capital	41,194	39,289	37,798	36,478	35,888	34,673	34,602	35,440
Segment cash RoIC ,%	10.3	9.6	9.5	9.9	10.3	9.6	9.6	8.4

Money-on-money multiple

	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3
	2022	2022	2021	2021	2021	2021	2020	2020
Purchase price of portfolios	3,120	1,675	2,133	1,445	1,680	1,443	1,256	837
acquired in quarter
ERC 180 months of portfolios	5,589	3,667	4,239	2,794	3,414	3,190	2,554	1,791
acquired in quarter
Quarterly MoM	1.79	2.19	1.99	1.93	2.03	2.21	2.03	2.14
RTM MoM (average of	1.98	2.04	2.04	2.05	2.10	2.18	2.08	2.05
quarterly MoM)
In quarter collections	3,459	3,145	3,008	2,961	3,108	2,740	2,937	2,700
RTM MoM (average of quarterly MoM)	1.98	2.04	2.04	2.05	2.10	2.18	2.08	2.05
Replenishment capex	-1,751	-1,545	-1,474	-1,443	-1,477	-1,259	-1,409	-1,317
			Full year				Full year
			2021				2020
Replenishment capex			-5,654				-5,355

Financial report

Condensed consolidated income statement

	Second quarter		6 months		Full year
	Apr–June	Apr–June	Jan–June	Jan–June
SEK M	2022	2021	2022	2021	2021
Revenues from clients	2,695	2,434	5,254	4,898	10,149
Revenues from portfolio investments calculated	2,130	1,988	4,042	3,722	7,507
using the effective interest method
Positive revaluations of portfolio investments	426	468	680	786	1,789
Negative revaluations of portfolio investments	-372	-466	-619	-781	-1,656
Total revenues	4,879	4,424	9,357	8,625	17,789
Cost of sales	-2,739	-2,446	-5,372	-4,810	-9,555
Gross earnings	2,140	1,979	3,985	3,814	8,233
Sales, marketing and administrative expenses	-668	-510	-1,316	-1,011	-2,051
Participation in associated companies and joint	88	95	215	290	293
ventures
Operating earnings (EBIT)	1,561	1,563	2,884	3,094	6,475
Net financial items	-620	-517	-1,146	-1,034	-2,174
Profit before tax	940	1,045	1,738	2,060	4,301
Taxes	-207	-235	-382	-464	-910
Net earnings for the period	734	810	1,356	1,597	3,391
Of which attributable to:
Parent company's shareholders	663	783	1,216	1,516	3,127
Non-controlling interest	71	27	140	81	265
Net earnings for the period	734	810	1,356	1,597	3,391
Average no of shares before dilution, '000	120,656	120,850	120,738	120,860	120,828
Average no of shares after dilution, '000	120,672	120,887	120,753	120,897	120,830
Earnings per share before dilution
Profit from continuing operations, SEK	5.50	6.48	10.07	12.54	25.88
Total earnings per share before dilution, SEK	5.50	6.48	10.07	12.54	25.88
Total earnings per share after dilution, SEK	5.49	6.48	10.07	12.54	25.88

Condensed consolidated statement of comprehensive income

	Second quarter 6 months			Full year
	Apr–June	Apr–June	Jan–June	Jan–June
SEK M	2022	2021	2022	2021	2021
Net earnings for the period	734	810	1,356	1,597	3,391
Other comprehensive earnings, items that
will be reclassified to profit and loss:
Currency translation difference	1,419	-364	2,112	507	1,753
Comprehensive income for the year attributable to	-543		-714		-411
hedging of currency and other
Other comprehensive earnings, items that
will not be reclassified to profit and loss:
Remeasurement of pension liability	1		-3		51
Comprehensive income for the period	1,610	446	2,750	2,104	4,785
Of which attributable to:
Parent company's shareholders	1,419	455	2,466	2,020	4,446
Non-controlling interest	192	-9	285	84	338
Comprehensive income for the period	1,610	446	2,750	2,104	4,785

Condensed consolidated balance sheet

	30 June	30 June	31 Dec
SEK M	2022	2021	2021
ASSETS
Intangible fixed assets
Goodwill	34,051	32,127	32,758
Capitalised expenditure for IT development	897	943	917
and other intangibles
Client relationships	3,892	4,605	4,136
Total intangible fixed assets	38,840	37,675	37,811
Tangible fixed assets
Right-of-use assets	696	792	756
Other tangible fixed assets	211	213	218
Total tangible fixed assets	908	1,005	974
Other fixed assets
Shares in joint ventures	6,732	5,983	6,438
Portfolio investments	34,827	29,300	31,478
Deferred tax assets	1,696	1,392	1,748
Long-term interest-bearing receivables	10	–	10
Other long-term receivables	80	91	79
Total other fixed assets	43,345	36,766	39,754
Total fixed assets	83,092	75,446	78,539
Current assets
Accounts receivable	1,237	1,091	1,299
Inventory of real estate	310	347	315
Client funds	972	1,054	1,063
Tax assets	136	206	170
Other receivables	1,553	1,305	1,578
Prepaid expenses and accrued earnings	1,644	1,224	1,366
Cash and cash equivalents	4,903	2,672	4,553
Total current assets	10,756	7,897	10,334
TOTAL ASSETS	93,848	83,343	88,883

SEK M SHAREHOLDERS' EQUITY AND LIABILITIES	2022 22,466	2021	2021
Attributable to parent company's shareholders		19,202	21,698
Attributable to non-controlling interest	3,079	2,819	2,989
Total shareholders' equity	25,545		22,020 24,687
Long-term liabilities
Liabilities to credit institutions	8,472	3,851	4,060
Bond loans	45,468	42,927	43,693
Long-term leasing liabilities	519	612	582
Other long-term liabilities	426	515	478
Provisions for pensions	356	378	329
Other long-term provisions	55	64	42
Deferred tax liabilities	1,149	1,083	1,103
Total long-term liabilities	56,445	49,430	50,288
Current liabilities
Bond loans	750	1,100	750
Commercial paper	2,069	3,724	3,998
Client funds payable	972	1,054	1,063
Accounts payable	436	452	504
Earnings tax liabilities	1,175	902	1,198
Advances from clients	36	44	29
Short-term leasing liabilities	229	223	223
Other current liabilities	2,044	1,908	1,908
Accrued expenses and prepaid earnings	4,139	2,472	4,225
Other short-term provisions	7	14	10
Total current liabilities	11,857	11,893	13,908
TOTAL SHAREHOLDERS' EQUITY AND	93,848	83,343	88,883
LIABILITIES

Condensed consolidated statement of changes in shareholders' equity

		2022			2021
	Attributable to			Attributable to
	Parent	Non		Parent	Non
	Company's	controlling		Company's	controlling
SEK M	shareholder	interest	Total	shareholder	interest	Total
Opening balance, January 1	21,698	2,989	24,687	18,676	2,915	21,591
Dividends paid	-1,632	-195	-1,826	-1,453	-180	-1,634
Treasury shares	-72		-72	-41		-41
Share base payment	6		6
Comprehensive earnings for the period	2,466	285	2,750	2,020	84	2,104
Closing balance, June 30	22,466	3,079	25,545	19,202	2,819	22,020

Condensed consolidated cash flow statement

	Second quarter		6 months		Full year
	Apr–June	Apr–June	Jan–June	Jan–June
	2022	2021	2022	2021	2021
Operating activities
EBIT	1,561	1,563	2,884	3,094	6,475
Depreciation/amortisation and impairment	350	325	740	651	1,500
Amortisation/revaluation of portfolio investments	1,276	1,117	2,502	2,122	4,178
Other adjustment for items not included in cash	-139	-116	-249	-312	-263
flow
Interest received	15	7	27	11	22
Interest paid	-386	-331	-986	-889	-1,822
Other financial expenses paid	-26	-44	-78	-89	-213
Earnings tax paid	-98	-294	-313	-505	-893
Cash flow from operating activities before	2,552	2,228	4,527	4,084	8,985
changes in working capital
Changes in factoring receivables	-73	-66	-124	-108	-115
Other changes in working capital	-275	-59	-230	-75	1,172
Cash flow from operating activities	2,204	2,103	4,173	3,901	10,042
Investing activities
Purchases of intangible fixed assets	-54	-55	-126	-129	-72
Purchases of tangible fixed assets	-11	-19	-21	-33	-262
Sale of tangible and intangible fixed assets		2	1	2	3
Portfolio investments in receivables	-3,770	-1,998	-4,738	-3,133	-7,038
Property holdings	24	47	10	40	70
Other cash flow from investing activities	97	-134	196	-71	-710
Cash flow from investing activities	-3,713	-2,157	-4,679	-3,324	-8,009
Financing activities
Borrowings and repayment of loans	2,761	2,223	2,138	1,577	2,139
Repurchase of shares	0	-42	0	-42	-41
Share dividend to parent company's shareholders	-1,632	-1,454	-1,632	-1,454	-1,451
Dividend to non-controlling shareholders	-190	-180	-190	-180	-244
Cash flow from financing activities	940	547	317	-99	401
Total change in liquid assets	-569	494	-189	479	2,434
Opening balance of liquid assets	4,977	2,252	4,553	2,134	2,134
Exchange rate differences in liquid assets	495	-74	539	59	-15
Closing balance of liquid assets	4,903	2,672	4,903	2,672	4,553
Group total
Cash flow from operating activities	2,204	2,103	4,173	3,901	10,042
Cash flow from investing activities	-3,713	-2,157	-4,679	-3,324	-8,009
Cash flow from financing activities	940	547	317	-99	401

Condensed income statement – parent company

	6 months		Full year
	Jan–June	Jan–June
SEK M	2022	2021	2021
Revenues	355	459	690
Gross earnings	355	459	690
Sales and marketing expenses	-17	-22	-33
Administrative expenses	-783	-692	-1,037
EBIT	-445	-255	-380
Earnings from subsidiaries	0	0	0
Exchange rate differences on monetary items classified as	307	-178	-316
expanded investment and hedging activities
Net financial items	-215	239	912
Earnings before tax	-354	-194	216
Tax	-6	0	0
Net earnings for the period	-360	-194	216

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

Condensed balance sheet – parent company

	30 June	30 June	31 Dec
SEK M	2022	2021	2021
ASSETS
Fixed assets
Intangible fixed assets	537	373	507
Tangible fixed assets	8	12	10
Financial fixed assets	82,291	72,721	73,991
Total fixed assets	82,835	73,106	74,508
Current assets
Current receivables	1,186	249	1,930
Cash and cash equivalents	383	884	602
Total current assets	1,569	1,133	2,532
TOTAL ASSETS	84,405	74,239	77,040
SHAREHOLDERS' EQUITY AND LIABILITIES
Restricted equity	818	285	786
Unrestricted equity	7,506	10,547	10,212
Total shareholders' equity	8,324	10,832	10,998
Long-term liabilities	67,009	55,088	55,498
Current liabilities	9,071	8,319	10,544
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	84,405	74,239	77,040

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 34.16A 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 2021 Annual Report.

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 revenues of SEK 335 M (459) for the second quarter and earnings before tax of SEK -354 M (-194). The Parent Company invested SEK 34 M (35) in fixed assets for the quarter and at the end of the quarter held SEK 383 M (844) in cash and cash equivalents. The average number of employees was 72 (62).

Development in the period

Total assets in the first half of the year increased by SEK 4,943 M to SEK 93,848 M at the end of June 2022 from SEK 88,905 M at the end of 2021.

The increase was mainly due to the additional investments in Portfolio Investments of SEK 4,819 M (see also Portfolio Investment section within this report for further details) partially offset by the amortisation of the period for SEK 2,502 M.

Net FX movement was mainly due to SEK/EUR exposure which changed by a positive SEK 1,398 M the first six months of 2022. Working capital was SEK -1,015 M at the end of June 2022 compared to the SEK -1,244 M at the end of December 2021. The change was mainly due to the FX movement during the period.

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.

Investments in joint ventures

IAS 28 requires recognition of impairment losses relating to joint ventures if objective evidence is available to support such losses. Such assessment ordinarily includes significant management judgement and forward looking assumptions with limited observable data. Objective evidence considered can include for example continued underperformance compared to forecasts and/ or comparable transactions completed by third parties at arm's length.

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 2021 Annual and Sustainability report. 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. For outstanding bonds with a total carrying value of SEK 46,218 M (44,270) at the end of the quarter, fair value is, however, estimated at SEK 40,988 M (44,807). The Group also holds forward exchange contracts and other financial assets of SEK 239 M (35), as well as financial liabilities of SEK 278 M (116) carried at fair value through the income statement.

Assets and financing

Total assets at the end of the quarter amounted to SEK 93,848 M, compared to SEK 83,343 M at the end of the second quarter of the preceding year. Net debt amounted to SEK 52,213 M (49,309), the share of fixed rate debt amounts to 72 per cent of net debt and is principally composed of EUR bonds with maturities between 2024 and 2027. Net debt in relation to the RTM cash EBITDA stands at 4.0x compared to 4.1x at the end of the second quarter 2021. By the end of the second quarter, Intrum had SEK 2,072 M (3,732) 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 8,562 M (3,975) of Intrum's revolving credit facility was utilised.

Events after the balance sheet date

No events after the balance sheet date.

Other information

The share

Intrum AB's (publ) share is included in Nasdaq Stockholm's Large Cap list. During the period 1 April–30 June 2022, 16,678,843 shares were traded for a total value of SEK 3,846 M, corresponding to 14 per cent of the total number of shares at the end of the period.

The highest price paid during the period 1 April–30 June 2022 was SEK 273.8 (5 April) and the lowest was SEK 192.4 (30 June). On the last trading day of the period, 30 June 2022, the price was SEK 195.2 (latest paid). During the period 1 April–30 June 2022, Intrum AB's (publ) share price fell by 24 per cent, while Nasdaq OMX Stockholm fell by 17 per cent.

Share price, SEK (1 July 2019 – 30 June 2022)

Shareholders

		Capital and
30 June 2022	No of shares	Votes, %
Nordic Capital through companies	47,728,956	39.2
AMF Pension & Fonder	9,243,542	7.6
Swedbank Robur Fonder	5,407,909	4.4
Handelsbanken Fonder	3,852,193	3.2
Första AP-fonden	2,931,960	2.4
Vanguard	2,540,410	2.1
Länsförsäkringar Fonder	2,452,997	2.0
C WorldWide Asset Management	2,073,411	1.7
TIAA - Teachers Advisors	1,748,999	1.4
Capital Group	1,700,000	1.4
BlackRock	1,197,863	1.0
Intrum AB	1,183,983	1.0
State Street Global Advisors	1,031,220	0.8
Avanza Pension	953,478	0.8
Norges Bank	912,756	0.7
Total fifteen largest shareholders	84,959,677	69.8
Total number of shares excluding treasury	120,536,935

shares

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 39.2 per cent (institutions 9.1 percentage points, mutual funds 18.8 percentage points and private individuals 11.3 percentage points).

Currency exchange rates

	Closing	Closing	Average	Average	Average
	rate	rate	rate	rate	rate
	30 june	30 june	Apr–June	Apr–June	Jan–Dec
	2022	2021	2022	2021	2021
1 EUR=SEK	10.73	10.11	10.48	10.65	10.48
1 CHF=SEK	10.77	9.21	10.15	10.04	9.80
1 NOK=SEK	1.04	0.99	1.05	0.97	0.98
1 HUF=SEK	0.0270	0.0287	0.0279	0.0303	0.0299

For further information, please contact Anders Engdahl, President and CEO, tel: +46 8 546 102 02

Michael Ladurner, CFO, tel: +46 8 546 102 02 Michael Ladurner, Investor Relations, tel: +46 8 546 102 02

Michael Ladurner 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 21 July 2022 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, 21 July 2022

Anders Engdahl

President and CEO

Definitions

Result concepts, key figures and alternative indicators

Acquired growth

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

Adjusted earnings 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 revenues

Revenues excluding portfolio revaluations and other items affecting comparability.

Adjusted operating earnings (EBIT)

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

Adjusted operating margin

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

Adjusted segment earnings

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

Amortisation percentage

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

Cash EBIT

Cash EBITDA less replenishment capex and other capex.

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 EPS

Cash EBIT minus cash net financial items and cash net tax normalised divided by the average number of outstanding shares.

Cash return on invested capital (RoIC)

Annualised cash EBIT divided by average invested capital for the period. Average invested capital calculated using quarterly opening and closing balances for the relevant period. Year to date and RTM is calculated using the opening and closing balances of the quarters in the period.

Cash revenues

Revenues excluding non-cash revenues such as portfolio amortisation and earnings from joint ventures.

Cash tax normalised

Earnings tax paid adjusted for non recurring items.

Cash flow from joint ventures

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

EBITDA

EBITDA is defined as operating earnings (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

Growth in cash revenues related to the effects of changes in exchange rates.

External revenues

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

Internal revenues

Predominantly related to revenues 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.

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 revenue 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

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

Net debt/cash EBITDA

This key figure refers to net debt divided by Cash EBITDA on a rolling 12-month basis. The key figure is included among the Group's financial targets, it is an important measure for assessing the level of the Group's borrowings and is a widely accepted measure of financial capacity among lenders. This key figure is calculated in accordance with the definitions stated in the terms of the Group's revolving syndicated loan facility, which means, among other things, that participations in non-consolidated joint ventures is only included to the extent that earnings are distributed to Intrum and that operations acquired during the period are included on a pro forma-basis throughout the 12-month period.

Operating earnings (EBIT)

Operating earnings consist of revenues less operating expenses as shown in the income statement.

Operating margin

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

Operating margin, segment

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

Organic growth

Organic growth refers to the average increase in cash revenues in local currency, adjusted for revaluations of portfolio investments and 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.

Other capex

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

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. Revenues 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.

Total portfolio investments made

The investments for the period in portfolios of overdue receivables, with and without collateral, investments in real estate and in joint ventures whose operations entail investing in portfolios of receivables and properties.

Replenishment capex

The estimated portfolio investments required to maintain the ERC in a steady state. Calculated by dividing the in quarter gross cash collections by the RTM MoM multiple.

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.

Revenues

Consolidated revenues include 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).

RTM

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

RTM MoM multiple

The average quarterly underwriting money-on-money multiple for the past 12 months. Calculated by dividing the lifetime ERC of acquired portfolios with the purchase price of the portfolios.

Segment earnings

Segment earnings relate to the operating earnings of each segment, Credit Management Services, Strategic Markets, Portfolio Investments and Group items.

About Intrum

Intrum is the industry-leading credit management company in Europe with presence in 24 markets. 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 10,000 dedicated professionals who serve around 80,000 companies across Europe. In 2021, the company generated revenues of SEK 17.8 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 24 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

Returns: Cash RoIC >10% medium term

Growth: Cash EPS >10% p.a. on average medium term

Leverage: Net debt/Cash EBITDA 2.5–3.5x by end of 2022

Shareholder remuneration policy: Absolute annual increase in dividend per share

For further details and definitions, see https://www.intrum.com/investors/financial-info/ financial-targets/

Financial calendar 2022

27 October Interim report for the third quarter 26 January 2023 Full-year report 2022

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