Intrum — Interim / Quarterly Report 2023

Apr 27, 2023

Interim report First quarter, 2023

First quarter 2023 highlights

• Slow but accelerating start to the year. Revenue increase sup ported by high commercial activity and growing assets under management (AUM)
• CMS and Portfolio Investments contributed to cash revenues growth, while Strategic Markets is stabilising after 24 months of substantial growth
• Disposal and capital partnership dialogues ongoing Cash revenues increased 2 % vs. Q1 '22, while cash EBITDA decreased 10 %
• Leverage ratio is up to 4.2x driven by adverse FX movements and slightly lower RTM cash EBITDA
• Results decline and recent increase in non-production costs to be addressed through SEK 0.6 bn cost reduction program
• We look forward to detail our strategic priorities in a Capital - Markets Day on 13th September

				Rolling
		First quarter		12 months	Full year
	Jan–Mar	Jan–Mar	Change
SEK M, unless otherwise indicated	2023	2022	%	2023	2022
Revenues	4,525	4,478	1	19,532	19,485
Adjusted revenues	4,524	4,471	1	19,013	18,960
Operating earnings (EBIT)	919	1,323	-31	-250	154
Adjusted operating earnings (EBIT)	1,068	1,471	-27	6,261	6,664
Net earnings for the period	70	622	-96	-4,931	-4,379
Earnings per share, SEK	0.19	4.57	-96	-41.18	-37.07
Adjusted earnings per share, SEK	1.10	5.34	-79	10.92	15.21
Cash revenues	5,901	5,792	2	24,736	24,627
Cash EBITDA	2,728	3,035	-10	12,931	13,238
Cash EBIT	1,180	1,409	-16	6,115	6,344
Cash EPS, SEK	0.12	4.58	-96	20.28	24.76
Cash RoIC, %	6.3	7.7	-1.4 ppt	8.2	8.4
Net debt/RTM cash EBITDA, x				4.2	4.0
Cash EBIT: Credit Management Services	250	314	-20	1,253	1,317
Cash EBIT: Strategic Markets	584	728	-20	3,255	3,399
Cash EBIT: Portfolio Investments	1,088	942	15	4,386	4,240
Total portfolio investments made	1,664	1,784	-7	7,418	7,538
Carrying value of Portfolio Investment	37,777	39,113	-3	35,773	37,109
Adjusted return on Portfolio Investment, (ROI), %	13	13	0 ppt	15	14

Slow but accelerating start to a transitory 2023

Q1 2023 was a seasonally slow quarter, with the results highlighting the economic and operational challenges we are facing across our footprint. Cost of living has increased materially, and mortgage interest rates have more than doubled in the last twelve months. Despite consumers' drop in disposable income and our operational challenges, our Servicing revenues rose 2% compared to last year and we collected in line with our expectations on our investment portfolios. However, I am not satisfied with the current performance nor the recent meaningful increase in non-production costs, both centrally and locally, and therefore today we are initiating a cost reduction program of SEK 0.6 billion.

To address the fundamental challenges to our business, we are accelerating the journey we started at the beginning of 2023 to Simplify & Focus plus Grow & Transform our company. We have determined that, while having extracted meaningful benefits from centralisation, ONE Intrum has gone too far in concentrating both the management and operations of our business. I believe in a more balanced global vs. local business model, driving benefits of centralisation while empowering our local teams who directly interact with our clients and customers. To this end, we recently modified the management structure in accordance with the new business lines (Servicing and Investing) and regional segments (Northern, Middle and Southern Europe plus Tactical markets). The new organisational structure will support commercial focus and empower decision making, bringing the organisation closer to our clients and increasing focus on our clients' needs. This allows us to be more competitive, but also more dynamic and fast paced in addressing challenges and adapting to the evolving environment – all bringing us closer to our full potential. As the European market leader, it is our responsibility to drive business development and to lead the way in understanding and meeting our clients' needs.

Resilient labour markets counterbalance disposable income decline

In the current challenging environment we see increasing demand for our services, evidenced by increasing assets under management (AUM) and substantial first quarter annual contract value (ACV) signings of SEK 288 million, with third party Servicing RTM cash revenues of SEK 10.8 billion. Our Servicing RTM cash EBITDA of SEK 4.7 billion is heavily impacted by increasing costs across the business. A sizeable portion of the cost increase is due to incremental spend to support the transformation program as well as cost duplication as we have built our global infrastructure. This effect is compounded by the current market backdrop driving the need to spend more time and effort to fairly and ethically collect on behalf of our clients.

We delivered a performance index of 100 in our Investing segment, matching our active forecast, with a slow January and February followed by a stronger March performance. This demonstrates our operational strength and the collectability of our diverse and granular back book, supported in part by increasing employment rates across Europe.

The increasing employment trend was discussed in our publication, Economy in Focus, released 18th April1 . For the last decade and a half, there has been a consistent upward trend in employment rates throughout Europe. Although the pandemic caused a slight, temporary dip the impact was minimal and shortlived. By end of 2022 a new peak was reached with 3 out of every 4 Europeans between the ages of 20 and 64 employed, albeit with their costs growing at a faster pace than their income since the beginning of 2022.

Regarding collections in our Investing segment, the first quarter is usually seasonally slow. On average during the preceding four years' first quarter collections were down ~5 index points compared to the preceding fourth quarter. Q1 2023 portfolio performance was not an exception with a drop of 11 index points after

"ONE Intrum has gone too far in concentrating both management and operations of our business. I believe in a more balanced global vs. local business model, driving benefits of centralisation while empowering our local teams who directly interact with our clients and customers."

a unusually strong December 2022 and 4Q 2022. The elevated drop this year was driven by the difficult economic environment and specific operating challenges, e.g. an extended court strike in Spain. Of these factors, our analysis indicates that ~60% are timing effects. We continue to expect a moderation of outperformance relative to the elevated levels experienced in 2021 and 2022. Despite the slow start to collections, Investing cash revenues and cash EBITDA are up 2% and 4%, respectively, compared to the same quarter last year.

In line with previous guidance we are moderating our investment pace, however, the total investment for the quarter came in slightly higher than anticipated compared to last year at SEK 1.7 billion due to a large one-off transaction in Spain of SEK 910 million carried over from 2022. The average expected return on investments made during the quarter was 16 per cent, again highlighting the higher returns available in the current environment.

At the end of the first quarter the leverage ratio increased to 4.2x driven by adverse currency movements and lower RTM cash EBITDA. The leverage ratio target is unchanged at 3.5x to be achieved as soon as possible.

Increasing new business flows and early indications of increasing asset supply

We see a continued trend of new and existing clients asking us for fair and ethical collection solutions to maintain good customer relationships, rehabilitating customers and receiving payment for their products and services. In the first quarter of 2023 we signed an ACV of SEK 288 million, across more than 200 medium and large transactions. Notably, in Italy, we signed agreements for EUR 520 million of additional contributions to the UTP credit fund "UTP Italia" from top primary banks, including our new client ICCREA Banca and we increased our mandate with AMCO to sell more than EUR 50 million real estate assets. We also prolonged our agreement with DNB in Norway. Our social impact is just as important as ever. We are continuously helping customers to become debt free with Intrum and in the last twelve months we resolved 4.4 million customers' debt and settled 8.9 million cases. During the last twelve months, we collected SEK ~76 billion for our clients and SEK ~13 billion on our own portfolios for a record SEK 89 billion. The importance (economically and socially) of credit management services rises meaningfully in a weaker economic environment, supporting economic activity and fair allocation of resources in society at large and supporting re-entrance of our clients' customers into the financial ecosystem.

Transformation recast

To Simplify & Focus plus Grow & Transform, we are recasting and broadening the transformation of our business, which will allow us to more appropriately address local markets' needs and drive shareholder returns. To date, we have improved across several areas with global hubs unlocking scale effects and enabling data and tech-driven processes to drive top-line growth and improve cost efficiency. We have achieved SEK 364 million in annual savings and reduced cost to collect by 0.4% points. Yet, we are not satisfied with the progress and acknowledge that our cost base has disproportionally grown compared to our revenues over the last years.

2023 initiatives will concentrate on achieving leadership in Servicing and Investing in our franchise markets, expanding the value chain and improving the technological front-end platform towards clients and customers. In addition, we are moving to a capital lighter business model where we will systematically partner with experienced investors to deploy capital across our markets utilising our origination platform. The combination of our proprietary origination plus our industry leading, resilient cash collections offer the potential for attractive and consistent long term investment returns for our capital partners and by extension our shareholders.

We will provide a detailed overview of our medium-term full potential and associated financial trajectory at the upcoming capital markets day scheduled for 13th September. In the meantime, given the current environment and our recent performance, we must strive to do more with less. Consequently, we are immediately initiating a targeted cost reduction program with the goal of SEK 0.6 billion in recurring savings to be realised during 2023.

Finally, I would like to thank the whole organisation for the hard work invested in accelerating the recast of the transformation program and working on setting ambitious targets for the years to come when we expect the demand for servicing solutions powered by capital to increase meaningfully.

Stockholm, April 2023

Andrés Rubio President & CEO "We see a continued trend of new and existing clients asking us for fair and ethical collection solutions... in the first quarter of 2023 we signed more than 200 transactions."

"We will provide a detailed overview of our medium-term full potential and associated financial trajectory at the upcoming capital markets day scheduled for 13th September."

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

Q1 2023 is generally a seasonally slow quarter. CMS and Strategic Markets continue to be affected by increases in operating expenses in the current environment. Although cases from financial services remain low, we are starting to see increasing inflows from the bank and finance sector in some of the key Servicing markets. Portfolio Investments performance is resilient and despite macroeconomic headwinds and operational challenges, such as the court strike in Spain, we collected at an index of 100 vs. active forecast. The leverage ratio was adversely impacted by currency movements, slightly lower RTM cash EBITDA, a deferred payment to Piraeus Bank in respect of our Greek business and a large one-off portfolio investment in Spain.

In Q1 2023 cash revenues increased to SEK 5,901 M (5,792), cash EBITDA decreased to SEK 2,728 M (3,035) and cash EBIT decreased to SEK 1,180 M (1,409). Cash EPS was SEK 0.12 (4.58), Cash RoIC stood at 6.3 (7.7) and leverage ratio at 4.2x (3.8x).

On a rolling 12-month basis cash revenues increased to SEK 24,736 M (22,758), cash EBITDA to SEK 12,931 SEK (12,633) and cash EBIT decreased to SEK 6,115 M (6,387). Cash EPS decreased to SEK 20.28 (27.89), and cash RoIC decreased to 8.2 % (8.9).

Cash revenues, SEK M Cash revenues rolling 12 months,

SEK M

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

Q 1 2022

1,409

Q 2 2022

1,595

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

Cash RoIC, % Cash RoIC rolling 12 months, %

Net Debt/RTM cash EBITDA

Segment overview

Credit Management Services, Strategic Markets and Portfolio Investments

Key figures, Q1 2023

	Credit Management	Strategic	Portfolio	Group
SEK M	Services	Markets	Investments	items	Group
Cash revenues	1,181	1,329	3,392	-	5,901
Reported segment earnings	180	359	1,235	-855	919
Depreciation and amortisation	43	206	2	66	318
Portfolio amortisation	-	-	1,226	-	1,226
Adjustment earnings from joint ventures	-	-4	-40	-	-43
Adjustment cash flow from joint ventures	-	7	146	-	153
Items affecting comparability	45	30	7	75	156
Cash EBITDA	268	599	2,576	-714	2,728
Replenishment capex	-	-	-1,488	-	-1,488
Other capex	-18	-15	-	-27	-60
Cash EBIT	250	584	1,088	-741	1,180
Cash financial items					-917
Cash tax normalised					-250
Recurring consolidated cash earnings					14
Average number of shares outstanding					121
Cash EPS, SEK					0.12
Average invested capital	21,573	15,529	37,715	196	75,013
Cash RoIC, %	4.6	15.0	11.5	-	6.3
Revenues	1,697	1,447	2,022	-640	4,525
Items affecting comparability	-	-	-1	-	-1
Adjusted revenues	1,697	1,447	2,021	-641	4,524
Reported segment earnings	180	359	1,236	-855	919
Items affecting comparability	44	22	7	75	150
Adjusted segment earnings	224	381	1,243	-781	1,068

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

Key figures, Q1 2022

	Credit Management	Strategic	Portfolio	Group
SEK M	Services	Markets	Investments	items	Group
Cash revenues	1,054	1,418	3,320	-	5,792
Reported segment earnings	264	427	1,293	-660	1,323
Depreciation and amortisation	47	248	2	93	390
Portfolio amortisation	-	-	1,233	-	1,233
Adjustment earnings from joint ventures	-	-	-126	-	-126
Adjustment cash flow from joint ventures	-	-	88	-	88
Items affecting comparability	12	64	-3	53	127
Cash EBITDA	324	739	2,487	-515	3,035
Replenishment capex	-	-	-1,545	-	-1,545
Other capex	-9	-11	-	-61	-81
Cash EBIT	314	728	942	-575	1,409
Cash financial items					-640
Cash tax normalised					-215
Recurring consolidated cash earnings					554
Average number of shares outstanding					121
Cash EPS, SEK					4.58
Average invested capital	19,078	14,719	39,289	213	73,299
Cash RoIC, %	6.6	19.8	9.6	-	7.7
Revenues	1,574	1,517	2,006	-619	4,478
Items affecting comparability	-	-	-7	-	-7
Adjusted revenues	1,574	1,517	1,999	-619	4,471
Reported segment earnings	264	427	1,293	-660	1,323
Items affecting comparability	12	55	-3	84	148
Adjusted segment earnings	276	482	1,290	-576	1,471

Jan–Mar 2023 Jan–Mar 2022 Change

Credit Management Services

SEK M

KPI's

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.

Adjusted revenues 1,697 1,574 8 6,428 Segment earnings 180 264 -32 1,039 Items affecting comparability 44 12 267 141 Adjusted segment earnings 224 276 -19 1,180

Average invested capital 21,573 19,078 13 19,876 Segment cash RoIC, % 4.6 6.6 -2.0 ppt 6.6 Cash revenues change, % 12 2 - 4 – thereof organic change, % 7 -3 - -1 – thereof exchange rates, % 5 5 - 5 – thereof acquired growth, % - - - - Operating margin, % 10 17 -7 ppt 16 Adjusted operating margin, % 13 18 -5ppt 18

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

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

In a seasonally weaker quarter, where customers' disposable income was affected by the macroeconomic environment, we managed to increase revenues slightly with a larger AUM but at increased cost to collect. Commercial activity was high during the quarter with ~160 medium and larger sized transactions signed. ACV signings remain on a positive trajectory proving the increasing demand for our services. We have also seen a gradual return of higher value, higher margin financial services cases to our platform.

Adjusted segment earnings are down 19% to SEK 224 M (276) compared to Q1 2022. Cash revenues increased by 12 % to SEK 1,181 M (1,054) compared to Q1 2022, while cash EBITDA and EBIT decreased by 17 % and 20 % respectively due to higher operating expenses.

Strategic Markets

Credit management with a focus on late payments and collections in Greece, Italy and Spain

		First quarter
	Jan–Mar	Jan–Mar	Change	Full year
SEK M	2023	2022	%	2022
Cash revenues	1,329	1,418	-6	6,172
Cash EBITDA	599	739	-19	3,497
– thereof joint ventures	7	-		12
Other capex	-15	-11	36	-99
Cash EBIT	584	728	-20	3,399
External revenues	1,322	1,418	-7	6,160
Internal revenues	125	99	26	500
Total revenues	1,447	1,517	-5	6,660
Items affecting comparability	-	-	-	-
Adjusted revenues	1,447	1,517	-5	6,660
Segment earnings	359	427	-16	1,681
– thereof joint ventures	4	-		25
Items affecting comparability	22	55	-60	834
Adjusted segment earnings	381	482	-21	2,513
KPI's
Average invested capital	15,529	14,719	6	14,951
Segment cash RoIC, %	15.0	19.8	-4.8 ppt	22.7
Cash revenues change, %	-6	5	-	10
– thereof organic change, %	-12	1	-	5
– thereof exchange rates, %	6	4	-	5
– thereof acquired growth, %	-	-	-	-
Operating margin, %	25	28	-3 ppt	25
Adjusted operating margin, %	26	32	-6 ppt	38

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

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

We have seen two years of high growth in the Strategic Markets segment which is now beginning to normalise. In the segment, we have progressed commercial activity with important client wins, particularly in Italy, where we signed agreements for EUR 520 million of additional contributions to the UTP credit fund "UTP Italia" from top primary banks, including our new client ICCREA Banca and we increased our mandate with AMCO to sell more than EUR 50 M real estate assets.

Adjusted segment earnings reduced 21 % to SEK 381 M (482) compared to Q1 2022. Cash revenues at SEK 1,329 M were 6 % below the same quarter last year, while cash EBITDA and cash EBIT decreased by 19 and 20 % respectively to SEK 599 M (739) and SEK 584 M (728) respectively. In addition to the reduction in cash revenues in the segment we see an increase in operating expenses driving the more noticeable decrease in cash EBITDA and cash EBIT compared to the same period last year.

Portfolio Investments

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

	First quarter 2023				First quarter 2022
	Overdue		Financial	Joint	Segment	Overdue		Financial	Joint	Segment
SEK M	receivables	REO	services	ventures	total	receivables	REO	services	ventures	total
Cash revenues	3,216	23	7	146	3,392	3,135	49	49	88	3,320
Cash EBITDA	2,428	-1	2	146	2,576	2,369	4	26	88	2,486
Replenishment capex	-1,488				-1,488	-1,545	-	-	-	-1,545
Cash EBIT	940	-1	2	146	1,088	824	4	26	88	942
Total revenues	1,993	22	7	-	2,022	1,909	49	49	-	2,006
Items affecting comparability	-1	-	-	-	-1	-7	-	-	-	-7
Adjusted segment revenues	1,992	22	7	-	2,021	1,902	49	49	-	1,999
Segment earnings	1,203	-10	2	40	1,235	1,142	1	24	125	1,293
Items affecting comparability	-	7	-	-	7	-7	2	2	-	-3
Adjusted segment earnings	1,203	-3	2	40	1,243	1,135	3	26	125	1,290
KPI's
Average invested capital	36,000	321	272	1,120	37,715	31,870	323	618	6,479	39,289
Segment cash RoIC, %	10.4	-1.9	3.6	52.1	11.5	10.3	5.1	16.8	5.4	9.6
Total portfolio investments made	1,617	47	-	-	1,664	1,689	95	-	-	1,784
Money-on-money multiple (RTM)	2.16	-	-	-	2.16	2.04	-	-	-	2.04
Book value	36,355	340	-	1,081	37,777	32,262	331	-	6,520	39,113
ERC	76,119	399	-	2,021	78,539	66,643	412	-	9,037	76,092
Cost to collect, paid %	24	145	-	-	25	24	97	-	-	25
Amortisation ratio, %	38		-	-	38	39	-	-	-	39
Operating margin, %	60	-45	34	-	61	60	3	50	-	64
Adjusted operating margin, %	60	-9	34	-	61	60	7	52	-	64
Return on portfolio investments, ROI, %	13	-12	-	14	13	14	2	-	8	13
Adjusted return on portfolio investments, ROI, %	13	-3	-	14	13	14	4	-	8	13

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

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

Cash revenues came in largely unchanged compared to Q1 2022 despite macro challenges and operational headwinds where, for example, an extended strike in the Spanish court system affected cash collections. In spite of these challenges, the first quarter's collection performance was 100 % of active forecast with a ROI of 13 % (13).

During the quarter, we invested SEK 1,664 M (1,784) in new

portfolios at a money-on-money multiple of 2.16 (2.04) and an IRR of 16 % (13). The investment levels were mainly driven by a large one-off transaction contracted in 2022.

Cash revenues increased to SEK 3,392 M (3,320), up 2 % compared to the same quarter last year. Cash EBITDA for the segment was SEK 2,576 M (2,486) and cash EBIT was SEK 1,088 M (942), up 4 % and 15 %, respectively, compared to the first quarter of 2022.

Financial overview

Alternative P&L

		First quarter	Rolling 12 months		Full year
	Jan–Mar	Jan–Mar	Apr 2022 -
SEK M	2023	2022	Mar 2023	2022	2021	2020	2019
External revenues	2,533	2,559	10,828	10,854	10,148	10,082	9,368
– thereof Credit Management Services	1,181	1,054	4,391	4,264	4,102	4,375	4,736
– thereof Strategic Markets	1,322	1,418	6,071	6,160	5,624	5,409	4,180
– thereof Others	30	87	366	430	422	298	452
Gross cash collections	3,216	3,145	13,497	13,426	11,818	10,957	10,772
Cash flow from joint ventures	153	88	412	347	248	338	197
Cash revenues	5,901	5,792	24,736	24,627	22,215	21,377	20,337
Cash expenses	-3,174	-2,757	-11,806	-11,389	-9,905	-9,770	-9,681
– thereof personnel	-1,749	-1,507	-6,425	-6,183	-5,584	-5,434	-5,215
– thereof non-personnel	-1,425	-1,250	-5,381	-5,206	-4,321	-4,336	-4,466
Cash EBITDA	2,728	3,035	12,931	13,238	12,310	11,607	10,656
Replenishment capex	-1,488	-1,545	-6,493	-6,550	-5,654	-5,355	-5,339
Other capex	-60	-81	-324	-345	-314	-672	-699
Cash EBIT	1,180	1,409	6,115	6,344	6,343	5,580	4,618
Cash financial items	-917	-640	-2,708	-2,431	-2,013	-1,974	-1,875
Cash tax normalised	-250	-215	-961	-926	-828	-474	-802
Recurring consolidated cash earnings	14	554	2,447	2,987	3,502	3,133	1,941
Average number of shares outstanding	121	121	121	121	121	124	131
Cash EPS, SEK	0.12	4.58	20.28	24.76	28.98	25.28	14.81

Key balance sheet items

		First quarter	Rolling 12 months			Full year
	Jan–Mar	Jan–Mar	Apr 2022 -
SEK M	2023	2022	Mar 2023	2022	2021	2020	2019
Total portfolio investments made	1,664	1,784	7,418	7,538	8,106	5,129	7,556
Carrying value of Investing	37,777	39,113	37,777	37,109	38,231	33,305	35,429
ERC	78,539	76,092	78,539	77,634	74,337	65,457	64,995
– thereof overdue receivables	76,119	66,643	76,119	75,302	64,901	58,490	55,311
– thereof joint ventures	2,021	9,037	2,021	1,954	9,047	6,288	6,539
– thereof REO	399	412	399	377	389	689	382
Net debt
Liabilities to credit institutions	8,817	4,305	8,817	8,430	4,060	2,081	6,186
Bond loans	47,526	44,775	47,526	46,958	44,443	43,706	41,644
Provisions for pensions	139	344	139	141	329	381	387
Commercial paper	1,689	3,360	1,689	1,130	3,998	2,916	2,794
Cash and cash equivalents	-3,713	-4,997	-3,713	-3,474	-4,553	-2,134	-1,906
Net debt at end of period	54,459	47,787	54,459	53,185	48,277	46,951	49,105
Net debt/RTM cash EBITDA			4.2	4.0	3.9	4.0	4.3

Adjusted Group figures

		First quarter	Rolling 12 months	Full year
	Jan–Mar	Jan–Mar	Apr 2022 -
SEK M	2023	2022	Mar 2023	2022
Items affecting comparability by earnings
statement line
Revenues from clients	-	-	408	408
Positive revaluations of portfolio investments	62	254	1,603	1,795
Negative revaluations of portfolio investments	-61	-247	-1,493	-1,679
Cost of sales	-82	-71	-1,055	-1,044
Sales, marketing and administration costs	-67	-84	-206	-223
Items affecting comparability joint ventures	-	-	-5,768	-5,768
Total items affecting comparability in operating	-150	-148	-6,512	-6,510
earnings
Other items affecting comparability by segment
Credit Management Services	-44	-13	-172	-141
Strategic Markets	-22	-55	-801	-834
Portfolio Investments	-7	4	-5,268	-5,257
Common costs	-75	-84	-269	-278
Total other items affecting comparability	-150	-148	-6,512	-6,510
Adjusted revenues
Revenues	4,525	4,478	19,532	19,485
Items affecting comparability	-1	-7	-519	-525
Adjusted revenues	4,524	4,471	19,013	18,960
Adjusted EBIT
EBIT	919	1,323	-250	154
Items affecting comparability	150	148	6,512	6,510
Total adjusted EBIT	1,068	1,471	6,261	6,664
Adjusted earnings per share
Net earnings for the period attributable to parent	23	553	-5,003	-4,473
company's shareholders
Items affecting comparability attributable to the	110	93	6,324	6,307
parent company's shareholders adjusted for tax
Average number of outstanding shares	121	121	121	121
Adjusted earnings per share, SEK	1.10	5.34	10.92	15.21

	First quarter		Rolling 12 months	Full year
	Jan–Mar	Jan–Mar	Apr 2022 -
SEK M	2023	2022	Mar 2023	2022
Portfolio Investments segment earnings excluding
items affecting comparability
Investing segment earnings	1,233	1,268	-152	-117
Items affecting comparability for investments	7	-3	5,673	5,663
Portfolio Investments segment earnings excluding	1,240	1,265	5,521	5,546
items affecting comparability
Average carrying value
Average carrying value receivables	36,000	31,870	34,985	33,953
Average carrying value joint ventures	1,121	6,479	3,986	5,322
Average carrying value real estate	321	323	311	311
Total average carrying value	37,443	38,672	39,282	39,586
Return including items affecting comparability	13	13	-0	-0
Return excluding items affecting comparability	13	13	14	14
Cash EBITDA
EBIT	918	1,323	-251	154
Depreciation and amortisation	318	390	1,966	2,038
Portfolio amortisation	1,226	1,233	5,313	5,320
Portfolio revaluations	-1	-7	-111	-117
Adjustments according to loan covenants:
Adjustment earnings from joint ventures	-43	-126	5,307	5,224
Adjustment cash flow from joint ventures	153	88	411	346
Items affecting comparability excluding portfolio	158	134	6,065	6,041
revaluations
Items affecting comparability joint ventures	-	-	-5,768	-5,768
Cash EBITDA	2,728	3,035	12,931	13,238

Revenues by type

		Full year
	Jan–Mar	Jan–Mar	Change
SEK M	2023	2022	%	2022
External servicing revenues	2,503	2,472	1	10,424
Gross cash collections	3,216	3,145	2	13,426
Other Investing segment revenues	30	87	-66	430
Cash flow from joint ventures	153	88	74	346
Cash revenues	5,901	5,792	2	24,627
Portfolio amortisation	-1,226	-1,233	-1	-5,320
Portfolio revaluations	1	7	-86	116
Adjustment cash flow from joint ventures	-153	-88	74	-346
Items affecting comparability revenues	-	-	-	408
Total revenues	4,525	4,478	1	19,485

Change in revenues

	First quarter	Full year
	Jan–Mar	Jan–Mar
Change in revenues, %	2023	2022	2022
Organic growth	-4	2	3
Acquired growth	-	-	-
Portfolio revaluations	-	-	-
Exchange rates	5	4	5
Items affecting comparability change in	-	-	2
revenues
Total	1	7	10

Items affecting comparability in operating earnings

	First quarter		Full year
	Jan–Mar	Jan–Mar
SEK M	2023	2022	2022
Positive revaluations of portfolio investments	62	254	1,795
Negative revaluations of portfolio investments	-61	-247	-1,678
Items affecting comparability joint ventures	-	-0	-5,768
Items affecting comparability depreciation and amortisations	8	-22	-585
Transformation program	-94	-122	-512
Other items affecting comparability	-64	-11	238
Total items affecting comparability	-150	-148	-6,510
in operating earnings

Net financial items specification

		First quarter
	Jan–Mar	Jan–Mar	Change
SEK M	2023	2022	%	2022
Interest earnings	19	12	58	85
Interest costs	-774	-486	59	-2,325
Interest cost on leasing liability according to IFRS 16	-8	-9	-11	-33
Exchange rate differences	2	2	-	-28
Amortisation of borrowing costs	-23	-25	-8	-109
Commitment fee	-28	-38	-26	-127
Other financial items	-13	19	-168	-867
Total net financial items	-825	-525	57	-3,404
Items affecting comparability in other financial items	-	-	-	995
Adjusted net financial items	-825	-525	57	-2,409

Group overview

Yearly overview, Group

SEK M	2022	2021	2020	2019	2018
Revenues	19,485	17,789	16,848	15,985	13,442
Adjusted revenues	18,960	17,656	16,731	15,780	13,131
EBIT	154	6,475	4,695	2,060	3,978
Adjusted EBIT	6,664	7,014	5,738	6,208	4,500
Net earnings	-4,379	3,391	2,078	-285	1,943
Earnings per share, SEK	-37.07	25.88	15.18	-2.76	14.18
Return on equity, %	-22	15	9	-2	8
Equity per share, SEK	153.68	183.33	154.28	168.12	195.16
Cash flow from operating activities per share, SEK	53.93	83.11	68.64	48.77	48.10
Average number of employees (FTEs)	9,965	9,694	9,379	8,766	7,910

Quarterly overview, Group

	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2
SEK M	2023	2022	2022	2022	2022	2021	2021	2021
Cash revenues	5,901	6,759	5,810	6,266	5,792	6,053	5,322	5,591
Cash EBITDA	2,728	3,786	3,009	3,408	3,035	3,726	2,906	2,966
Cash EBIT	1,180	1,943	1,396	1,595	1,409	2,171	1,394	1,413
Cash EPS, SEK	0.12	8.56	2.48	9.12	4.58	13.93	3.68	5.67
Revenues	4,525	5,557	4,570	4,879	4,478	4,870	4,294	4,424
Adjusted revenues	4,524	5,134	4,530	4,825	4,471	4,853	4,183	4,422
Operating earnings (EBIT)	919	-1,153	-1,576	1,561	1,323	2,040	1,341	1,563
Adjusted EBIT	1,068	1,928	1,564	1,701	1,471	2,355	1,533	1,594
Net earnings	70	-3,633	-2,158	734	622	1,251	541	810
Earnings per share, SEK	0.19	-30.14	-17.05	5.50	4.57	8.98	4.33	6.48
Return on equity, %	-27	-23	1	12	13	15	12	14
Equity per share, SEK	154.58	153.81	172.39	186.20	188.25	183.38	168.72	162.54
Cash flow from operating activities per share, SEK	13.30	9.24	10.11	18.27	16.30	26.54	24.08	17.40
Average invested capital	75,013	75,243	76,930	75,695	73,299	72,224	71,405	70,971
Cash RoIC , %	6.3	10.3	7.3	8.4	7.7	12.0	7.8	8.0
Number of employees (FTEs)	10,240	10,238	10,054	9,920	9,750	9,664	9,733	9,786

Segment overview

Credit Management Services

	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2
SEK M	2023	2022	2022	2022	2022	2021	2021	2021
Cash revenues	1,181	1,149	1,042	1,019	1,054	1,056	996	1,012
Cash EBIT	250	315	346	342	314	437	396	411
Revenues	1,697	1,688	1,586	1,579	1,574	1,602	1,541	1,572
– thereof external clients	1,181	1,149	1,042	1,019	1,054	1,056	996	1,012
– thereof intercompany	516	539	544	561	520	546	545	560
revenues
Adjusted revenues	1,697	1,688	1,586	1,579	1,574	1,602	1,541	1,572
Segment earnings	180	208	295	272	264	355	356	367
Adjusted segment earnings	224	286	316	302	276	374	356	367
Items affecting comparability	43	78	21	30	12	19	-	-1
Adjusted operating margin, %	13	17	20	19	18	23	23	23
Average invested capital	21,573	20,892	20,086	19,449	19,078	19,089	19,174	19,176
Segment cash RoIC, %	4.6	6.0	6.9	7.0	6.6	9.2	8.3	8.6

Strategic Markets

	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2
SEK M	2023	2022	2022	2022	2022	2021	2021	2021
Cash revenues	1,329	1,785	1,412	1,557	1,418	1,802	1,160	1,315
Cash EBIT	584	1,137	699	834	728	1,310	482	572
Revenues	1,447	1,943	1,516	1,683	1,517	1,903	1,257	1,416
– thereof external clients	1,322	1,780	1,405	1,557	1,418	1,802	1,160	1,315
– thereof intercompany	125	163	112	126	99	101	97	101
revenues
Adjusted revenues	1,447	1,943	1,516	1,683	1,517	1,903	1,257	1,416
Segment earnings	359	675	23	556	427	901	265	370
Adjusted segment earnings	381	952	483	597	482	1,142	271	373
Items affecting comparability	22	278	460	41	55	242	-6	-3
Adjusted operating margin, %	26	49	32	35	32	60	22	26
Average invested capital	15,529	15,182	15,056	14,845	14,719	15,118	15,526	15,674
Segment cash RoIC, %	15.0	30.0	18.6	22.5	19.8	34.7	12.4	14.6

Portfolio Investments

	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2
SEK M	2023	2022	2022	2022	2022	2021	2021	2021
Cash revenues	3,392	3,825	3,356	3,690	3,320	3,195	3,166	3,265
Cash EBITDA	2,575	2,955	2,532	2,816	2,486	2,375	2,350	2,402
Cash EBIT	1,088	1,234	999	1,065	942	901	907	925
Gross cash collections	3,216	3,652	3,170	3,459	3,145	3,008	2,961	3,108
Portfolio amortisation	-1,226	-1,552	-1,206	-1,329	-1,233	-1,111	-1,072	-1,120
Portfolio revaluation	1	15	40	54	7	17	112	3
Other Investing segment revenues	183	105	119	119	87	98	138	107
Items affecting comparability	-	408	–	–	–	–	–	–
revenues
Revenues	1,990	2,628	2,124	2,303	2,006	2,012	2,138	2,098
Segment earnings	1,233	-1,230	-1,169	1,497	1,293	1,312	1,198	1,303
Adjusted segment earnings	1,240	1,455	1,438	1,465	1,290	1,337	1,305	1,353
Investing	1,617	1,240	1,326	3,131	1,689	2,342	1,420	1,739
Total carrying value of Investing	37,453	37,109	39,693	41,869	39,113	38,231	36,179	35,629
– thereof purchased receivables 36,000		35,645	35,161	34,827	32,262	31,478	29,840	29,300
– thereof joint ventures	1,132	1,162	4,236	6,732	6,520	6,438	6,013	5,983
– thereof real estate	321	302	296	310	331	315	326	347
Adjusted return on portfolio investments, ROI, %	13	15	14	14	13	14	14	15
Amortisation ratio, %	38	43	38	38	39	37	36	36
ERC	78,539	77,634	82,832	81,976	76,092	74,337	70,322	69,107
Replenishment capex	-1,448	-1,721	-1,533	-1,751	-1,545	-1,474	-1,443	-1,477
Money-on-money multiple (RTM)	2.16	2.12	2.07	1.98	2.04	2.04	2.05	2.10
Average invested capital	37,715	38,968	41,587	41,194	39,289	37,798	36,478	35,888
Segment cash RoIC ,%	11.5	12.7	9.6	10.3	9.6	9.5	9.9	10.3

Money-on-money multiple

	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2
	2023	2022	2022	2022	2022	2021	2021	2021
Purchase price of portfolios	1,675	1,147	1,347	3,120	1,675	2,133	1,445	1,680
acquired in quarter
ERC 180 months of portfolios	3,936	2,528	3,096	5,589	3,667	4,239	2,794	3,414
acquired in quarter
Quarterly MoM	2.35	2.20	2.30	1.79	2.19	1.99	1.93	2.03
RTM MoM (average of quarterly MoM)	2.16	2.12	2.07	1.98	2.04	2.04	2.05	2.10
In quarter collections	3,216	3,652	3,170	3,459	3,145	3,008	2,961	3,108
RTM MoM (average of quarterly MoM)	2.16	2.12	2.07	1.98	2.04	2.04	2.05	2.10
Replenishment capex	-1,488	-1,721	-1,533	-1,751	-1,545	-1,474	-1,443	-1,477
		Full year 2022				Full year 2021
Replenishment capex		-6,550				-5,654

Financial report

Condensed consolidated income statement

		First quarter
	Jan–Mar	Jan–Mar	Full year
SEK M	2023	2022	2022
Revenues from clients	2,533	2,560	11,263
Revenues from portfolio investments calculated using the effective interest method	1,990	1,912	8,105
Positive revaluations of portfolio investments	62	254	1,795
Negative revaluations of portfolio investments	-61	-247	-1,678
Total revenues	4,525	4,478	19,485
Cost of sales	-2,912	-2,633	-11,433
Gross earnings	1,612	1,845	8,053
Sales, marketing and administrative expenses	-737	-648	-2,676
Participation in associated companies and joint ventures	43	126	-5,223
Operating earnings (EBIT)	919	1,323	154
Net financial items	-825	-525	-3,404
Profit before tax	93	797	-3,250
Taxes	-23	-175	-1,129
Net earnings for the period	70	622	-4,379
Of which attributable to:
Parent company's shareholders	23	553	-4,473
Non-controlling interest	47	69	93
Net earnings for the period	70	622	-4,379
Average no of shares before dilution, '000	120,537	120,821	120,637
Average no of shares after dilution, '000	120,537	120,857	120,637
Earnings per share before dilution
Profit from continuing operations, SEK	0.19	4.57	-37.07
Total earnings per share before dilution, SEK	0.19	4.57	-37.07
Total earnings per share after dilution, SEK	0.19	4.58	-37.07

Condensed consolidated statement of comprehensive income

	First quarter	Full year
	Jan–Mar	Jan–Mar
SEK M	2023	2022	2022
Net earnings for the period	70	622	-4,379
Other comprehensive earnings, items that
will be reclassified to profit and loss:
Currency translation difference	203	693	3,868
Comprehensive income for the year attributable to hedging of	-102	-171	-1,017
currency and other
Other comprehensive earnings, items that
will not be reclassified to profit and loss:
Remeasurement of pension liability	0	-4	126
Comprehensive income for the period	171	1,140	-1,402
Of which attributable to:
Parent company's shareholders	87	1,047	-1,737
Non-controlling interest	84	93	335
Comprehensive income for the period	171	1,140	-1,402

Condensed consolidated balance sheet

	31 Mar	31 Dec	31 Dec
SEK M	2023	2022	2021
ASSETS
Intangible fixed assets
Goodwill	35,214	35,143	32,758
Capitalised expenditure for IT development	856	891	917
and other intangibles
Client relationships	2,888	3,019	4,136
Total intangible fixed assets	38,958	39,053	37,811
Tangible fixed assets
Right-of-use assets	660	659	756
Other tangible fixed assets	251	241	218
Total tangible fixed assets	912	899	974
Other fixed assets
Shares in joint ventures	1,090	1,174	6,438
Portfolio investments	36,356	35,645	31,478
Deferred tax assets	1,964	1,891	1,748
Long-term interest-bearing receivables	0	0	10
Other long-term receivables	54	53	79
Total other fixed assets	39,464	38,764	39,754
Total fixed assets	79,333	78,716	78,539
Current assets
Accounts receivable	1,075	1,080	1,299
Inventory of real estate	340	302	315
Client funds	1,081	1,130	1,063
Tax assets	339	300	170
Other receivables	1,146	1,472	1,578
Prepaid expenses and accrued earnings	1,708	2,236	1,366
Cash and cash equivalents	3,713	3,474	4,553
Total current assets	9,402	9,994	10,334
TOTAL ASSETS	88,735		88,711 88,883

SEK M	31 Mar 2023	31 Dec 2022	31 Dec 2021
SHAREHOLDERS' EQUITY AND
LIABILITIES
Attributable to parent company's	18,632	18,540	21,698
shareholders
Attributable to non-controlling interest	2,551	2,659	2,989
Total shareholders' equity	21,183	21,200	24,687
Long-term liabilities
Liabilities to credit institutions	8,817	8,430	4,060
Bond loans	42,822	42,279	43,693
Long-term leasing liabilities	468	482	582
Other long-term liabilities	392	406	478
Provisions for pensions	139	141	329
Other long-term provisions	25	31	42
Deferred tax liabilities	1,281	1,279	1,103
Total long-term liabilities	53,944		53,047 50,288
Current liabilities
Bond loans	4,705	4,679	750
Commercial paper	1,689	1,130	3,998
Client funds payable	1,081	1,130	1,063
Accounts payable	554	440	504
Earnings tax liabilities	629	665	1,198
Advances from clients	27	26	29
Short-term leasing liabilities	241	230	223
Other current liabilities	1,120	1,967	1,908
Accrued expenses and prepaid earnings	3,555	4,189	4,225
Other short-term provisions	7	8	10
Total current liabilities	13,608	14,464	13,908
TOTAL SHAREHOLDERS' EQUITY AND	88,735		88,711 88,883
LIABILITIES

Condensed consolidated statement of changes in shareholders' equity

		2023		2022
	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	18,540	2,659	21,200	21,698	2,989	24,687
Repurchase of shares	-	-	-	-	-	-
Dividends paid	-	-192	-192	-	-	-
treasury shares	-	-	-	-	-	-
Share base payment	6	-	6	-2	-	-2
Other comprehensive	86	84	169	1,047	93	1,140
income and other
movements
Closing balance as of	18,632	2,551	21,183	22,743	3,082	25,825
March 31

Condensed consolidated cash flow statement

	First quarter		Full year
	Jan–Mar	Jan–Mar
	2023	2022	2022
Operating activities
EBIT	919	1,323	154
Depreciation/amortisation and impairment	318	390	2,038
Amortisation/revaluation of portfolio investments	1,224	1,226	5,204
Other adjustment for items not included in cash flow	-47	-110	5,170
Gain on sale of subsidiries	-	-	-408
Interest received	20	12	85
Interest paid	-902	-600	-2,274
Other financial expenses paid	-35	-52	-1,237
Earnings tax paid	-252	-215	-1,444
Cash flow from operating activities before changes in working	1,245	1,975	7,286
capital
Changes in factoring receivables	29	-50	-65
Other changes in working capital	335	44	-716
Cash flow from operating activities	1,609	1,969	6,506
Investing activities
Purchases of intangible fixed assets	-34	-72	-275
Purchases of tangible fixed assets	-32	-10	-87
Sale of tangible and intangible fixed assets	3		11
Portfolio investments in receivables	-1,974	-968	-7,109
Property holdings	-26	-14	27
Purchases of shares in subsidiaries and associated companies	-		-279
Proceeds from divestment of subsidiaries	-		781
Other cash flow from investing activities	153	98	352
Cash flow from investing activities	-1,910	-966	-6,579
Financing activities
Borrowings and repayment of loans	581	-623	-130
Repurchase of shares	-	-	-72
Share dividend to parent company's shareholders	-	-	-1,632
Dividend to non-controlling shareholders	-192	-	-392
Cash flow from financing activities	389	-623	-2,226
Total change in liquid assets	88	380	-2,300
Opening balance of liquid assets	3,474	4,553	4,553
Exchange rate differences in liquid assets	151	44	1,221
Closing balance of liquid assets	3,713	4,977	3,474
Group total
Cash flow from operating activities	1,609	1,969	6,506
Cash flow from investing activities	-1,910	-966	-6,579
Cash flow from financing activities	389	-623	-2,226

Condensed income statement – parent company

	First quarter		Full year
	Jan–Mar	Jan–Mar
SEK M	2023	2022	2022
Revenues	225	180	891
Gross earnings	225	180	891
Sales and marketing expenses	-25	-8	-41
Administrative expenses	-469	-346	-1,780
EBIT	-269	-174	-930
Earnings from subsidiaries	0	0	0
Exchange rate differences on monetary items classified as	25	-99	-591
expanded investment and hedging activities
Net financial items	-279	-211	-765
Earnings before tax	-523	-485	-2,286
Tax	-2	0	276
Net earnings for the period	-525	-485	-2,010

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

Condensed balance sheet – parent company

	31 Mar	31 Dec	31 Dec
SEK M	2023	2022	2021
ASSETS
Fixed assets
Intangible fixed assets	530	547	507
Tangible fixed assets	5	6	10
Financial fixed assets	81,986	80,936	73,991
Total fixed assets	82,521	81,490	74,508
Current assets
Current receivables	643	1,437	1,930
Cash and cash equivalents	444	545	602
Total current assets	1,087	1,982	2,532
TOTAL ASSETS	83,608	83,472	77,040
SHAREHOLDERS' EQUITY AND LIABILITIES
Restricted equity	815	830	786
Unrestricted equity	5,957	6,464	10,212
Total shareholders' equity	6,772	7,294	10,998
Long-term liabilities	68,437	68,238	55,498
Current liabilities	8,399	7,940	10,544
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	83,608	83,472	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 also appear in other parts of the interim report.

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

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 225 M (180) for the quarter and earnings before tax of SEK -523 M (-485). The Parent Company invested SEK 42 M (58) in fixed assets for the quarter and at the end of the quarter held SEK 444 M (619) in cash and cash equivalents. The average number of employees was 87 (66).

Development in the period

Total assets as of March 31, 2023 of SEK 88,735 was flat as compared of the same period of last year, of SEK 88,711 M.

The increase in Portfolio Investments of SEK 710 M was mainly offset by reduction of prepaid expenses and accrued income of SEK 528 M. Net FX movement was mainly due to SEK/EUR exposure which changed by a positive SEK 64 M at the end of the first quarter 2023. Working capital was SEK -525 M at the end of December 2022 compared to the SEK -589 M at the end of December 2022. The share of revenues denominated in EUR amounted to 71 % (66).

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 2022 Annual and Sustainability report. High level of uncertainty with high inflation and in particular high and increasing energy prices and interest rates are a major concern for the euro-area. Intrum has a resilient business model and demand for our services and solutions are expected to increase over the coming quarters. No new significant risks have arisen besides those described in the Annual and Sustainability report.

Fair value of financial instruments

Most of the Group's financial assets and liabilities (portfolio investments, accounts receivable, other receivables, cash and cash equivalents, liabilities to credit institutions, bonds, commercial paper, accounts payable and other liabilities) are carried at amortised cost in the consolidated financial statements. For most of these financial instruments, the carrying amount is deemed to be a good estimate of fair value. For outstanding bonds with a total carrying value of SEK 47,526 M (44,775) at the end of the quarter, fair value is, however, estimated at SEK 42,879 M (43,946). The Group also holds forward exchange contracts and other financial assets of SEK 191 M (187), as well as financial liabilities of SEK 128 M (241) carried at fair value through the income statement.

Financing

Net debt amounted to SEK 54,459 M (47,787), the share of fixed rate debt amounts to 72 % of net debt and is principally composed of EUR bonds with maturities between 2024 and 2028. Net debt in relation to the RTM cash EBITDA stands at 4.2x compared to 3.8x at the end of the first quarter 2022. By the end of the first quarter, Intrum had SEK 1,689 M (1,130) outstanding commercial paper, the increase 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 8,885 M (4,316) 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 January–31 March 2023, 46,693,887 shares were traded for a total value of SEK 5,891 M, corresponding to 39 % of the total number of shares at the end of the period.

The highest price paid during the period 1 January–31 March 2023 was SEK 146.0 (26 January) and the lowest was SEK 96.5 (28 March). On the last trading day of the period, 31 March 2023, the price was SEK 111.65 (latest paid). During the period 1 January–31 March 2023, Intrum AB's (publ) share price fell by 14 %, while Nasdaq OMX Stockholm rose by 6 %.

Share price, SEK (1 April 2020 – 31 March 2023)

Shareholders

		Capital and
31 December 2022	No of shares	Votes, %
Nordic Capital through companies	38,769,929	31.9
AMF Pension & Fonder	11,947,900	9.8
Första AP-fonden	4,843,082	4.0
Vanguard	2,735,783	2.2
Swedbank Robur Fonder	2,385,235	2.0
TIAA - Teachers Advisors	2,126,927	1.7
Norges Bank	2,002,962	1.6
C WorldWide Asset Management	1,698,225	1.4
Swedbank Försäkring	1,248,684	1.0
Avanza Pension	1,242,079	1.0
BlackRock	1,202,055	1.0
Intrum AB	1,183,983	1.0
Handelsbanken Fonder	1,140,600	0.9
Nordnet Pensionsförsäkring	1,057,483	0.9
Futur Pension	901,356	0.7
Total fifteen largest shareholders	74,486,283	61.2
Total number of shares excluding treasury	120,536,935

Total number of shares excluding treasury 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 47.6 % (institutions 11.4 percentage points, mutual funds 14.7 percentage points and private individuals 21.9 percentage points).

Currency exchange rates

	Closing	Closing	Average	Average	Average
	rate	rate	rate	rate	rate
	31 Mar	31 Mar	Jan–Mar	Jan–Mar	Jan–Dec
	2023	2022	2023	2022	2022
1 EUR=SEK	11.28	10.33	11.97	10.48	10.63
1 CHF=SEK	11.32	10.07	11.28	10.11	10.59
1 NOK=SEK	0.99	1.06	1.02	1.06	1.05
1 HUF=SEK	0.030	0.028	0.029	0.029	0.027

For further information, please contact

Andrés Rubio, President and CEO, tel: +46 8 546 102 02 Michael Ladurner, CFO, tel: +46 8 546 102 02 Emil Folkesson, 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 27 April 2023 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, 27 April 2023

Andrés Rubio 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 in change of revenues

Change in 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. MoM is adjusted to exclude the VAT component of portfolios plus certain portfolio investments outside of our typical investment mix.

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 2022, the company generated revenues of SEK 19.5 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 2023

27 April 2023 Annual General Meeting 20 July 2023 Interim report for the second quarter 25 October 2023 Interim report for the third quarter 25 January 2024 Interim report for the forth quarter

Intrum AB (publ)

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