Intrum — Interim / Quarterly Report 2022

Jan 26, 2023

Year end report Fourth quarter, 2022

Fourth quarter 2022 highlights

• Strong finish to the year, especially within Strategic Markets and Portfolio Investments segments
• In CMS we saw increasing inflows, predominantly from lower balance, lower margin invoices
• All segments contributed positively to cash revenues growth for the full year
• Cash revenues increased 12% and cash EBITDA 2%, while cash EBIT decreased 11% in Q4 '22 compared to Q4 last year
• Leverage ratio is stable at 4.0x, negative impact from depreci ating currency compared to last year
• We expect 2023 to be a transition year where we will see increased inflows of financial services claims to our servic ing business and a moderate pace of investments in a more uncertain risk environment across our footprint and to address leverage
• We look forward to laying out further details in respect of our strategic priorities in a Capital Markets Day to be held during Q2 '23
• The Board of Directors proposes a dividend of SEK 13.50 (13.50) per share payable in two equal instalments in May and November 2023, corresponding to a total of SEK 1,627 M (1,632)

		Fourth quarter		Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M, unless otherwise indicated	2022	2021	%	2022	2021	%
Revenues	5,557	4,870	14	19,485	17,789	10
Adjusted revenues	5,134	4,853	6	18,960	17,656	7
Operating earnings (EBIT)	-1,153	2,040	-157	154	6,475	n.m.
Adjusted operating earnings (EBIT)	1,928	2,355	-18	6,664	7,014	-5
Net earnings for the period	-3,576	1,251	n.m.	-4,379	3,391	n.m.
Earnings per share, SEK	-30.14	8.98	n.m.	-37.07	25.88	n.m.
Adjusted earnings per share, SEK	-2.74	10.69	-126	15.21	28.86	-47
Cash revenues	6,759	6,053	12	24,627	22,215	11
Cash EBITDA	3,786	3,726	2	13,238	12,310	8
Cash EBIT	1,943	2,171	-11	6,344	6,343	0
Cash EPS, SEK	8.56	13.93	-39	24.76	28.98	-15
Cash RoIC, %	10.3	12.0	-14	8.4	8.9	-6
Net debt/RTM cash EBITDA, x				4.0	3.9
Cash EBIT: Credit Management Services	315	437	-29	1,317	1,640	-20
Cash EBIT: Strategic Markets	1,137	1,310	-13	3,399	3,009	13
Cash EBIT: Portfolio Investments	1,234	901	37	4,240	3,561	19
Total portfolio investments made	1,277	2,683	-52	7,538	8,106	-7
Carrying value of portfolio investments	37,109	38,231	-3	37,109	38,231	-3
Adjusted return on portfolio investments, (ROI), %	15	14	1	14	14	0

Strong finish to 2022 provides a solid foundation for the future

Following the announcement on the 18th of January, I am excited and privileged to have been entrusted with the challenge to lead Intrum through its next chapter as President and CEO. While I am convinced that we have a very solid foundation with many strengths, I also see substantial opportunities for further commercial development and organisational improvement ahead. A strong fourth quarter ended 2022 and provides a positive environment in the years to come.

Strong cash generation and finish to 2022

Our performance during 2022 - as well as the fourth quarter - has showcased Intrum's fundamental strengths, given the backdrop of a challenging macroeconomic environment across our footprint. Our multi-market integrated business model has enabled us to significantly grow cash revenues, up 11% and 12%, as well as cash EBITDA, up 8% and 2%, year on year and quarter on quarter, respectively. This positive development is rooted in the strong contribution from both Portfolio Investments and Strategic Markets. Portfolio Investments delivered strong underlying collection outperformance of 108% for the full year and 111% for the fourth quarter, a testament to the quality of our underwriting and workout competencies, particularly important in this difficult market environment. In line with previous guidance, we have moderated our investment pace, with SEK 7.5 billion deployed in 2022 and SEK 1.2 billion during the fourth quarter, at increasing internal rate of return amounting to 15% in the second half of 2022 vs. 12% in first half of 2022. Strategic Markets delivered a consistently strong trajectory throughout the year with Greece and Italy outperforming relative to expectations and to other markets.

On the other hand, our challenges have also been consistent throughout the year as the CMS segment has not yet seen material increases in higher value, higher margin financial services inflows. At the same time, costs have increased due to higher levels of activity required to maintain revenues, given efforts to collect and increase inflows of lower value, lower margin industrial invoices. Costs overall have also been impacted by our efforts to enable and support the ONE Intrum transformation, as well as building and enhancing both our commercial and data and analytics capabilities.

The leverage ratio is still at 4.0x at the end of the year, adversely impacted by the continued depreciation of the SEK throughout 2022 as well as the settlement of the derivative agreement with CarVal. We remain committed to achieving our 3.5x leverage ratio target as soon as possible.

Our success benefits key stakeholders and society

Looking beyond financial indicators, we have made significant progress with our clients who benefit from our solutions, which enable us to win new and extend existing mandates. In 2022 Intrum won new servicing contracts with a 36% higher annual value compared to 2021. This comes in large part from new clients but also from our existing clients. Some of the largest deals last year included Sainsbury's Bank in the UK, Credit Agricole Italy and Vattenfall in Sweden. Satisfied clients are also a particularly important enabler for our commercial success. In our Annual Client Satisfaction Survey, we achieved a high score of 7.6 out of 10 overall and 8.4 out of 10 for larger and key clients.

Just as important, we have helped our customers resolve their financial challenges in a fair and ethical manner, with circa 4 million customers becoming debt free with Intrum in 2022 alone. This highlights the contribution we make to the functioning of the financial ecosystem and is only possible due to our highly competent and dedicated workforce, evidenced by a strong Employee Engagement Index of 80 out of 100 and Culture Index of 85 out of 100.

Strengths, opportunities and initiatives

We expect increasing demand for our services and solutions in 2023. Stage-2 loans have increased from 1.2 trillion to 2.0 trillion over the last three years, household cost of borrowing has more than doubled in 2022 and one of every three European households expect to miss at least one bill payment in the coming twelve months. In addition, the overall risk environment has started to adjust to increasing interest rates and risk premia.

We therefore expect 2023 to be a transition year where we

"Our performance during 2022 as well as the fourth quarter - has showcased Intrum's fundamental strengths, particularly against the backdrop of a challenging macroeconomic environment across our footprint."

will see: (i) an increased flow of financial services claims into our servicing business to add to the already strong flow of industrial invoices and (ii) a more moderate pace of investments given the more uncertain risk environment and our ambition to lower leverage.

Going forward, we believe that the significant increases in the volumes of potential investments (generated by the key drivers of Stage-2 loan and household borrowing cost increases) will begin near the end of 2023 and continue for several years. In the meantime, we will focus on driving collections performance on our existing portfolio in the increasingly challenging environment.

The servicing business will be driven by a general increased need for our services and, more specifically, the continued strong performance in those markets where we have a strong leadership position – Scandinavia, Greece, Italy, Spain and UK. In addition, it is incumbent on us to continue to improve our efficiency and service functionality across all of our key markets through a continued overview of our operations.

In sum, we expect 2023 to bring increased flows of financial services claims, moderate and selective investments, and a focus on deleveraging.

Our priorities going forward

Our fundamental and long-term strategic priorities remain unchanged - profitable growth and improved effectiveness and efficiency through a number of key initiatives. In this context, our key themes for our long-term development are simplify and focus as well as grow and transform.

Simplify and focus means making our organisation and communication more targeted, coherent and transparent. We will increase our focus on the geographies where we can achieve leadership in both servicing and investing, to set the foundation for the highest growth and profitability. Grow and transform encompasses all initiatives enabling profitable growth and fostering a culture of continuous improvement. In 2023 we will therefore pursue a number of specific initiatives.

Organisation and footprint: We will simplify and focus on two businesses - Servicing and Investing – plus clusters of geographies with distinct commonalities. Our overall footprint is generally characterised by Franchise markets across Northern, Middle and Southern Europe and investment-dominated Tactical markets predominantly in Eastern Europe. Franchise markets are defined by strong, deep and long-standing client relationships with leadership in both Servicing and Investing, while Tactical markets are dependent on continuous investment volumes and need to be monitored carefully over time. In line with this increased focus and simplification, we are investigating a potential exit from the Baltics, Romania and Brazil – reducing our jurisdictions from 25 to 20.

Value chain extension: In our Franchise markets we want to continue to expand our product capabilities in line with our clients' evolving needs, including early-stage solutions as well as secured and real estate services. This will allow us to broaden and deepen client relationships, supporting growth of the Servicing business.

Client and customer-centric approach: The value generation for our clients and customers is at the very centre of everything we do. We will continue to harmonise our technology platform, focusing on increasing the efficiency and effectiveness of our touchpoints with clients and customers. During 2023 we will update and harmonise our client and customer portals, roll out a state-of-the-art dialer system and introduce an end-to-end digital collection solution in our key markets.

Capital partnership: We will explore opportunities over the near term to establish a balance-sheet-light capital partnership, where a financial partner complements our Investing activities. This enables the further monetisation of our origination, underwriting and workout capabilities, adding additional revenues. This would allow us to significantly increase overall portfolio investments as well as the asset base for our servicing platform, while keeping our book value stable.

We will detail these themes as well as associated trajectory and targets on a Capital Markets Day to be held during the second quarter.

Stockholm, January 2023

Andrés Rubio President & CEO "Our fundamental and long-term strategic priorities remain unchanged - profitable growth and improved effectiveness and efficiency through our overall transformation program. In this context, my key themes for our long-term development are simplify and focus as well as grow and transform."

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

Q4 2022 was a seasonally strong quarter, with strong and resilient underlying performance. Strategic Markets continue to perform well. Underlying outperformance in Portfolio Investments, albeit strong, is starting to normalise and CMS again continues to be affected by lower new financial services inflows. The leverage ratio also continues to be adversely affected by currency movements.

In Q4 2022 cash revenues increased to SEK 6,759 M (6,053), cash EBITDA to SEK 3,786 M (3,726) and cash EBIT decreased to SEK 1,943 M (2,171). Cash EPS was SEK 8.56 (13.93), Cash RoIC stood at 10.3 (12.0) and leverage ratio at 4.0x (3.9x).

On a rolling 12-month basis cash revenues increased to SEK 24,627 M (22,215), cash EBITDA to SEK 13,238 SEK (12,310) and cash EBIT to SEK 6,344 M (6,343). Cash EPS decreased to SEK 24.76 (28.98), and cash RoIC decreased to 8.4% (8.9).

Cash revenues, SEK M Cash revenues rolling 12 months, SEK M

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

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, where we are the leading credit management services company. Our transformation program ONE Intrum has involved a number of milestones to ensure that we remain relevant in a changing market and is constantly being altered to its implications.

We have implemented a global operating model and established operational hubs. We are establishing simpler, more datadriven business processes and have transitioned portfolios from multiple countries to a global collection system.

Our global front offices serve 18 Intrum markets and 19.2 per cent of all calls. The global collection system is our largest collection system, handling 9.4 million cases, 25 per cent of all cases globally, across 7 markets. No new migrations took place during the fourth quarter of 2022.

At the end of Q4 2022, our full year run-rate savings realised from the transformation program are at SEK 290 M. Our rolling twelve month FTE cost-to-collect ratio improved to 5.8 per cent in Q4 2022 vs. 6.2 per cent in Q4 2021.

A broadened focus for increased client centricity and value creation

Our fundamental strategic priorities remain unchanged - profitable growth and improved efficiency through our transformation program. To succeed, we will increasingly focus on delivering value in our front-end touchpoints with clients and customers, with a more agile, needs basis approach to converting additional countries to a global collection system. We will continue to harmonise our technology platform, front end and back-end, on a bespoke basis in balance with other strategic priorities.

To strengthen the commercial development of Intrum, key themes will be simplify and focus our operations and market presence, as well as grow and transform to achieve profitable growth and fostering a culture of continuous improvement.

FTE cost-to-collect RTM, %

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

Segment overview

Credit Management Services, Strategic Markets and Portfolio Investments

Key figures, Q4 2022

	Credit Management	Strategic	Portfolio	Group
SEK M	Services	Markets	Investments	items	Group
Cash revenues	1,149	1,785	3,825	–	6,759
Reported segment earnings	208	675	-1,230	-806	-1,153
Depreciation and amortisation	46	430	2	76	553
Portfolio amortisation	–	–	1,552	–	1,552
Adjustment earnings from joint ventures	–	-10	2,980	–	2,970
Adjustment cash flow from joint ventures		5	68	–	73
Items affecting comparability	78	90	-416	40	-208
Cash EBITDA	332	1,190	2,955	-690	3,786
Replenishment capex	–	–	-1,721	–	-1,721
Other capex	-17	-53	–	-52	-122
Cash EBIT	315	1,137	1,234	-742	1,943
Cash financial items					-666
Cash tax normalised					-245
Recurring consolidated cash earnings					1,032
Average number of shares outstanding					121
Cash EPS, SEK					8.56
Average invested capital	20,892	15,182	38,969	200	75,243
Cash RoIC, %	6.0	30.0	12.7	–	10.3
Revenues	1,688	1,943	2,628	-702	5,557
Items affecting comparability	–	–	-424	–	-424
Adjusted revenues	1,688	1,943	2,205	-702	5,134
Reported segment earnings	208	675	-1,230	-806	-1,153
Items affecting comparability	78	278	2,686	40	3,081
Adjusted segment earnings	286	952	1,455	-766	1,928

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

Key figures, Q4 2021

	Credit Management	Strategic	Portfolio	Group
SEK M	Services	Markets	Investments	items	Group
Cash revenues	1,056	1,802	3,195	–	6,053
Reported segment earnings	355	901	1,312	-527	2,040
Depreciation and amortisation	74	376	2	66	518
Portfolio amortisation	–	–	1,111	–	1,111
Adjustment earnings from joint ventures	–	–	-124	–	-124
Adjustment cash flow from joint ventures	–	–	88	–	88
Items affecting comparability	16	63	-14	28	92
Cash EBITDA	444	1,340	2,375	-433	3,726
Replenishment capex	–	–	-1,474	–	-1,474
Other capex	-7	-30	–	-44	-81
Cash EBIT	437	1,310	901	-477	2,171
Cash financial items					-419
Cash tax normalised					-68
Recurring consolidated cash earnings					1,683
Average number of shares outstanding					121
Cash EPS, SEK					13.93
Average invested capital	19,089	15,118	37,798	239	72,224
Cash RoIC, %	9.2	34.7	9.6	–	12.0
Revenues	1,602	1,903	2,012	-646	4,870
Items affecting comparability	–	–	-17	–	-17
Adjusted revenues	1,602	1,903	1,995	-646	4,853
Reported segment earnings	355	901	1,312	-527	2,040
Items affecting comparability	19	242	25	28	314
Adjusted segment earnings	374	1,142	1,337	-499	2,355

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.

		Fourth quarter		Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2022	2021	%	2022	2021	%
Cash revenues	1,149	1,056	9	4,264	4,102	4
Cash EBITDA	332	444	-26	1,364	1,701	-20
Other capex	-17	-7	143	-47	-61	-23
Cash EBIT	315	437	-28	1,317	1,640	-20
External revenues	1,149	1,056	9	4,264	4,102	4
Internal revenues	539	546	-1	2,164	2,197	-2
Total revenues	1,688	1,602	5	6,428	6,299	2
Items affecting comparability	–	–	–	–	–	–
Adjusted revenues	1,688	1,602	5	6,428	6,299	2
Segment earnings	208	355	-41	1,039	1,430	-27
Items affecting comparability	78	19	311	141	17	729
Adjusted segment earnings	286	374	-24	1,180	1,447	-18
KPI's
Average invested capital	20,892	19,089	9	19,876	19,103	4
Segment cash RoIC, %	6.0	9.2	-3.3 ppt	6.6	8.6	-2.0 ppt
Cash revenues change, %	9	-4		4	-6
– thereof organic change, %	2	-5		-1	-4
– thereof exchange rates, %	7	1		5	-2
– thereof acquired growth, %	–	–		–	–
Operating margin, %	12	22	-10 ppt	16	23	-7 ppt
Adjusted operating margin, %	17	23	-6 ppt	18	23	-5 ppt

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

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

During the fourth quarter of 2022, new case inflows continued to increase, predominantly from lower balance, lower margin invoices such as utility bills. Higher value, higher margin financial services claims continued to lag during this period. Given the challenging macroeconomic environment across our footprint and deteriorating credit quality across Europe, as evidenced by the near doubling of Stage-2 bank loans over the last three years, CMS benefits from a favourable outlook into 2023 with growing revenues and increasing margin expected over time.

Throughout the year we have seen an increasing cost trend in

the segment. As existing claims are ageing, inflows are at lower margin, and new financial services claims are lagging the segment has experienced a marked increase in costs for a less pronounced increase in revenues.

As a result, cash revenues are up 9 per cent and cash EBIT is down 28 per cent compared to the fourth quarter last year. Full year 2022 cash revenues are up 4 per cent and cash EBIT is down 20 per cent. Cash return on invested capital was 6.0 (9.2) per cent for the quarter and 6.6 (8.6) per cent for the year.

Strategic Markets

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

		Fourth quarter		Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2022	2021	%	2022	2021	%
Cash revenues	1,785	1,802	-1	6,172	5,624	10
Cash EBITDA	1,190	1,340	-11	3,497	3,080	14
– thereof joint ventures	5	–	–	12	–
Other capex	-53	-30	77	-99	-72	38
Cash EBIT	1,137	1,310	-13	3,399	3,009	13
External revenues	1,780	1,802	-1	6,160	5,624	10
Internal revenues	163	101	61	500	387	29
Total revenues	1,943	1,903	2	6,660	6,011	11
Items affecting comparability	–	–	–	–	–
Adjusted revenues	1,943	1,903	2	6,660	6,011	11
Segment earnings	675	901	-25	1,681	1,974	-15
– thereof joint ventures	10	–		25	–
Items affecting comparability	278	242	15	834	251	232
Adjusted segment earnings	952	1,142	-17	2,513	2,225	13
KPI's
Average invested capital	15,182	15,118	0	14,951	15,504	-4
Segment cash RoIC, %	30.0	34.7	-4.7 ppt	22.7	19.4	-3.3 ppt
Cash revenues change, %	-1	23		10	4
– thereof organic change, %	-8	25		5	8
– thereof exchange rates, %	7	-2		5	-4
– thereof acquired growth, %	–	–		–	–
Operating margin, %	35	47	-12 ppt	25	33	-8 ppt
Adjusted operating margin, %	49	60	-11 ppt	38	37	1 ppt

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

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

Strategic Markets delivered a strong full year performance with increasing cash metrics compared to last year. Both Italy and Greece had a strong year, significantly up compared to 2021, driven by improving collection performance and supported by some transactional items throughout the year. Spain delivered stable performance throughout the year, despite losing the SAREB contract. For 2023, we expect a stabilisation of the performance trajectory across Strategic Markets.

Cash revenues came in slightly lower at SEK 1,785 M (1,802) for the fourth quarter and SEK 6,172 M (5,624) for the year, down 1 and up 10 per cent respectively compared to the same period last year. Cash EBITDA and cash EBIT for the quarter is down 11 and 13 per cent, respectively. For the year cash EBITDA and cash EBIT is up 14 and 13 per cent. Cash RoIC was 30.0 (34.7) per cent in the fourth quarter and 22.7 (19.4) per cent for the year.

Portfolio Investments

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

	Fourth quarter 2022				Fourth quarter 2021
	Overdue		Financial	Joint	Segment	Overdue		Financial	Joint	Segment
SEK M	receivables	REO	services	ventures	total	receivables	REO	services	ventures	total
Cash revenues	3,659	65	33	68	3,825	3,022	37	47	88	3,195
Cash EBITDA	2,856	17	15	68	2,955	2,260	3	24	88	2,375
Replenishment capex	-1,721	–	–	–	-1,721	-1,474	–	–	–	-1,474
Cash EBIT	1,135	17	15	68	1,234	786	3	24	88	901
Total revenues	2,122	65	441	–	2,628	1,927	37	47	–	2,012
Items affecting comparability	-15		-408	–	-424	-17	–	–	–	-17
Adjusted segment revenues	2,108	65	33	–	2,205	1,911	37	47	–	1,995
Segment earnings	1,317	10	422	-2,980	-1,230	1,165	1	22	124	1,312
Items affecting comparability	-15	7	-408	3,102	2,686	-17	1	1	40	25
Adjusted segment earnings	1,302	17	14	122	1,455	1,148	3	23	164	1,337
KPI's
Average invested capital	35,403	299	568	2,699	38,969	33,659	320	593	6,226	37,798
Segment cash RoIC, %	17.4	22.3	-277.3	10.0	12.7	10.3	3.8	16.2	5.7	9.6
Total portfolio investments made	1,240	38	–	–	1,277	2,342	7	–	333	2,683
Money-on-money multiple (RTM)	2.12	–	–	–	2.12	2.04	–	–	–	2.04
Book value	35,645	302	–	1,162	37,109	31,478	315	–	6,438	38,231
ERC	75,302	377	–	1,954	77,634	64,901	389	–	9,047	74,337
Cost to collect, paid %	22	84	–	–	23	25	97	–	–	26
Amortisation ratio, %	43	–	–	–	43	37	–	–	–	37
Operating margin, %	62	16	96	–	-47	60	3	48	–	65
Adjusted operating margin, %	62	26	44	–	66	60	7	49	–	67
Return on portfolio	15	14	–	-441	-17	15	1	–	8	14
investments, ROI, %
Adjusted return on portfolio investments, ROI, %	15	22	–	18	15	15	3	–	11	14

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

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

The collection performance for the fourth quarter was 118 per cent above active forecast and 112 per cent for the full year. During 2022, a few small portfolios were sold, above book value, for a total value of SEK 381 M realising a gain on sale of SEK 106 M. These portfolio sales were in respect of claims outside of our normal course of business. Adjusting collection performance for sales, the fourth quarter collection performance was 111 per cent above active forecast and 108 per cent for the full year. In 2023, we expect Portfolio Investments outperformance to reduce over time and also anticipate a more moderate investment pace for most of the year. Cash return on invested capital was 12.7 (9.6) per cent for the quarter and 10.5 (9.8) per cent for the year.

During the quarter we invested SEK 1,277 M (2,683) in new portfolios at a money-on-money multiple of 2.12 (2.04) and an IRR of 18 (12) per cent.

Cash EBITDA and cash EBIT is up 24 and 37 per cent respectively compared to the fourth quarter last year. For the year the cash EBITDA and cash EBIT is up 17 and 19 per cent. Adjusted segment earnings is up 9 per cent in the quarter and 8 per cent for the year.

	Full year 2022				Full year 2021
	Overdue		Financial	Joint	Segment	Overdue		Financial	Joint	Segment
SEK M	receivables	REO	services	ventures	total	receivables	REO	services	ventures	total
Cash revenues	13,435	192	230	334	14,191	11,853	198	190	248	12,490
Cash EBITDA	10,319	33	103	334	10,790	8,843	16	107	248	9,215
Replenishment capex	-6,550	–	–	–	-6,550	-5,654	–	–	–	-5,654
Cash EBIT	3,769	33	103	334	4,240	3,190	16	107	248	3,561
Total revenues	8,231	192	638	–	9,061	7,676	198	190	–	8,063
Items affecting comparability	-116	–	-408	–	-525	-133	–	–	–	-133
Adjusted segment revenues	8,116	192	230	–	8,537	7,543	198	190	–	7,931
Segment earnings	5,111	20	507	-5,246	392	4,659	-14	105	293	5,043
Items affecting comparability	-116	12	-406	5,768	5,257	-133	29	1	288	185
Adjusted segment earnings	4,995	32	101	521	5,648	4,526	15	106	581	5,229
KPI's
Average invested capital	33,953	311	674	5,323	40,260	29,423	354	539	5,893	36,209
Segment cash RoIC, %	10.1	2.0	75.9	6.3	10.5	10.9	4.5	19.5	4.2	9.8
Total portfolio investments made	7,385	152	–	–	7,538	7,004	99	–	1,002	8,106
Money-on-money multiple (RTM)	2.05	–	–	–	2.05	2.04	–	–	–	2.04
Book value	35,645	302	–	1,162	37,109	31,478	315	–	6,438	38,231
ERC	75,302	377	–	1,954	77,634	64,901	389	–	9,047	74,337
Cost to collect, paid %	23	90	–	–	24	26	107	–	–	24
Amortisation ratio, %	40	–	–	–	40	36	–	–	–	36
Operating margin, %	61	10	80	–	4	61	-7	55	–	63
Adjusted operating margin, %	62	16	44	–	66	60	8	56	–	66
Return on portfolio	15	6	–	-99	1	16	-6	–	5	14
investments, ROI, %
Adjusted return on portfolio investments, ROI, %	15	10	–	10	14	15	6	–	10	14

Financial overview

Alternative P&L

	Fourth quarter			Full year
	Oct–Dec Oct–Dec
SEK M	2022	2021	2022	2021	2020	2019
External revenues	3,034	2,956	10,854	10,148	10,082	9,368
– thereof Credit Management Services	1,149	1,056	4,264	4,102	4,375	4,736
– thereof Strategic Markets	1,780	1,802	6,160	5,624	5,409	4,180
– thereof Others	105	98	430	422	298	452
Gross cash collections	3,652	3,008	13,426	11,818	10,957	10,772
Cash flow from joint ventures	73	88	347	248	338	197
Cash revenues	6,759	6,053	24,627	22,215	21,377	20,337
Cash expenses	-2,973	-2,327	-11,389	-9,905	-9,770	-9,681
– thereof personnel	-1,667	-1,440	-6,183	-5,584	-5,434	-5,215
– thereof non-personnel	-1,306	-887	-5,206	-4,321	-4,336	-4,466
Cash EBITDA	3,786	3,726	13,238	12,310	11,607	10,656
Replenishment capex	-1,721	-1,474	-6,550	-5,654	-5,355	-5,339
Other capex	-122	-81	-345	-314	-672	-699
Cash EBIT	1,943	2,171	6,344	6,343	5,580	4,618
Cash financial items	-666	-420	-2,431	-2,013	-1,974	-1,875
Cash tax normalised	-245	-68	-926	-828	-474	-802
Recurring consolidated cash earnings	1,032	1,683	2,987	3,502	3,133	1,941
Average number of shares outstanding	121	121	121	121	124	131
Cash EPS, SEK	8.57	13.93	24.76	28.98	25.28	14.81

Key balance sheet items

		Fourth quarter	Full year
	Oct–Dec	Oct–Dec
SEK M	2022	2021	2022	2021	2020	2019
Total portfolio investments made	1,277	2,683	7,538	8,106	5,129	7,556
Carrying value of portfolio investments	37,109	38,231	37,109	38,231	33,305	35,429
ERC	77,634	74,337	77,634	74,337	65,457	64,995
– thereof overdue receivables	75,302	64,901	75,302	64,901	58,490	55,311
– thereof joint ventures	1,954	9,047	1,954	9,047	6,288	6,539
– thereof REO	377	389	377	389	689	382
Net debt
Liabilities to credit institutions	8,430	4,060	8,430	4,060	2,081	6,186
Bond loans	46,958	44,443	46,958	44,443	43,706	41,644
Provisions for pensions	141	329	141	329	381	387
Commercial paper	1,130	3,998	1,130	3,998	2,916	2,794
Cash and cash equivalents	-3,474	-4,553	-3,474	-4,553	-2,134	-1,906
Net debt at end of period	53,185	48,277	53,185	48,277	46,951	49,105
Net debt/RTM cash EBITDA			4.0	3.9	4.0	4.3

Adjusted Group figures

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2022	2021	2022	2021
Items affecting comparability by earnings
statement line
Revenues from clients	408	–	408	–
Positive revaluations of portfolio investments	545	321	1,795	1,789
Negative revaluations of portfolio investments	-530	-304	-1,679	-1,656
Cost of sales	-386	-263	-1,044	-299
Sales, marketing and administration costs	-18	-28	-223	-84
Items affecting comparability joint ventures	-3,102	-40	-5,768	-288
Total items affecting comparability in operating	-3,081	-314	-6,510	-538
earnings
Other items affecting comparability by segment
Credit Management Services	-78	-19	-141	-17
Strategic Markets	-278	-242	-834	-251
Portfolio Investments	-2,686	-25	-5,257	-185
Common costs	-40	-28	-278	-85
Total other items affecting comparability	-3,081	-314	-6,510	-538
Adjusted revenues
Revenues	5,557	4,870	19,485	17,789
Items affecting comparability	-424	-17	-525	-133
Adjusted revenues	5,134	4,853	18,960	17,656
Adjusted EBIT
EBIT	-1,153	2,040	154	6,475
Items affecting comparability	3,081	314	6,510	538
Total adjusted EBIT	1,928	2,355	6,664	7,014
Adjusted earnings per share
Net earnings for the period attributable to parent	-3,633	1,085	-4,473	3,127
company's shareholders
Items affecting comparability attributable to the	3,303	206	6,307	361
parent company's shareholders adjusted for tax
Average number of outstanding shares	121	121	121	121
Adjusted earnings per share, SEK	-2.74	10.69	15.21	28.86

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2022	2021	2022	2021
Portfolio Investments segment earnings excluding
items affecting comparability
Portfolio Investments segment earnings	-1,653	1,289	-117	4,938
Items affecting comparability for investments	3,094	25	5,663	185
Portfolio Investments segment earnings excluding	1,441	1,314	5,546	5,122
items affecting comparability
Average carrying value
Average carrying value receivables	35,403	30,659	33,953	29,423
Average carrying value joint ventures	2,699	6,226	5,322	5,893
Average carrying value real estate	299	320	311	353
Total average carrying value	38,401	37,205	39,586	35,670
Return including items affecting comparability	-17	14	1	14
Return excluding items affecting comparability	15	14	14	14
Cash EBITDA
EBIT	-1,153	2,040	154	6,475
Depreciation and amortisation	553	518	2,038	1,500
Portfolio amortisation	1,552	1,111	5,320	4,310
Portfolio revaluations	-15	-17	-117	-133
Adjustments according to loan covenants:
Adjustment earnings from joint ventures	2,970	-124	5,224	-293
Adjustment cash flow from joint ventures	73	88	346	248
Items affecting comparability excluding portfolio revaluations	2,908	148	6,041	489
Items affecting comparability joint ventures	-3,102	-40	-5,768	-288

Revenues by type

	Fourth quarter			Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2022	2021	%	2022	2021	%
External servicing revenues	2,929	2,858	2	10,424	9,726	7
Gross cash collections	3,652	3,008	21	13,426	11,818	14
Other Portfolio Investments segment	105	98	7	430	423	2
revenues
Cash flow from joint ventures	73	88	-17	346	248	40
Cash revenues	6,759	6,053	12	24,627	22,215	11
Portfolio amortisation	-1,552	-1,111	40	-5,320	-4,311	23
Portfolio revaluations	15	17	-12	116	133	-13
Adjustment cash flow from joint	-73	-88	-17	-346	-248	40
ventures
Items affecting comparability	408	–	–	408	–	–
revenues
Total revenues	5,557	4,870	14	19,485	17,789	10

Items affecting comparability in operating earnings

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2022	2021	2022	2021
Positive revaluations of portfolio investments	545	321	1,795	1,789
Negative revaluations of portfolio investments	-530	-304	-1,678	-1,656
Items affecting comparability joint ventures	-3,102	-40	-5,768	-288
Items affecting comparability depreciation and amortisations	-188	-179	-585	-179
Transformation program	-163	-85	-512	-73
Other items affecting comparability	355	-28	238	-132
Total items affecting comparability in operating earnings	-3,081	-314	-6,510	-538

Net financial items specification

		Fourth quarter
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2022	2021	%	2022	2021	%
Interest earnings	32	5	558	85	22	284
Interest costs	-694	-467	49	-2,325	-1,832	27
Interest cost on leasing liability	-9	-9	-1	-33	-37	-10
according to IFRS 16
Exchange rate differences	-27	-1	n.m.	-28	-11	144
Amortisation of borrowing costs	-37	-25	50	-109	-103	5
Commitment fee	-32	-38	-16	-127	-153	-17
Other financial items	-995	-31	n.m.	-867	-60	n.m.
Total net financial items	-1,761	-565	212	-3,404	-2,174	57
Items affecting comparability in other	995	–	–	995	–	–
financial items
Adjusted net financial items	-766	–	–	-2,409	–	–

Change in revenues

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
Change in revenues, %	2022	2021	2022	2021
Organic growth	-2	7	3	8
Acquired growth	–	–	–	–
Portfolio revaluations	–	-11	–	1
Exchange rates	8	-1	5	-3
Items affecting comparability change	8		2
in revenues
Total	14	-5	10	6

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 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2022	2022	2022	2022	2021	2021	2021	2021
Cash revenues	6,759	5,810	6,266	5,792	6,053	5,322	5,591	5,249
Cash EBITDA	3,786	3,009	3,408	3,035	3,726	2,906	2,966	2,712
Cash EBIT	1,943	1,396	1,595	1,409	2,171	1,394	1,413	1,365
Cash EPS, SEK	5.57	2.48	9.12	4.58	13.93	3.68	5.67	5.68
Revenues	5.557	4,570	4,879	4,478	4,870	4,294	4,424	4,200
Adjusted revenues	5.134	4,530	4,825	4,471	4,853	4,183	4,422	4,198
Operating earnings (EBIT)	-1,153	-1,576	1,561	1,323	2,040	1,341	1,563	1,531
Adjusted EBIT	1,928	1,564	1,701	1,471	2,355	1,533	1,594	1,532
Net earnings	-3.633	-2,158	734	622	1,251	541	810	787
Earnings per share, SEK	-30.14	-17.05	5.50	4.57	8.98	4.33	6.48	6.06
Return on equity, %	-18	-39	12	10	20	11	16	15
Equity per share, SEK	153.81	172.39	186.20	188.25	183.38	168.72	162.54	171.12
Cash flow from operating activities per share, SEK	9.24	10.11	18.27	16.30	26.54	24.08	17.40	14.88
Average invested capital	75,243	76,930	75,695	73,299	72,224	71,405	70,971	69,578
Cash RoIC , %	10.3	7.3	8.4	7.7	12.0	7.8	8.0	7.8
Number of employees (FTEs)	10,238	10,054	9,920	9,750	9,664	9,733	9,786	9,626

Segment overview

Credit Management Services

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2022	2022	2022	2022	2021	2021	2021	2021
Cash revenues	1,149	1,042	1,019	1,054	1,056	996	1,012	1,038
Cash EBIT	315	346	342	314	437	396	411	396
Revenues	1,688	1,586	1,579	1,574	1,602	1,541	1,572	1,585
– thereof external clients	1,149	1,042	1,019	1,054	1,056	996	1,012	1,038
– thereof intercompany	539	544	561	520	546	545	560	546
revenues
Adjusted revenues	1,688	1,586	1,579	1,574	1,602	1,541	1,572	1,585
Segment earnings	208	295	272	264	355	356	367	352
Adjusted segment earnings	286	316	302	276	374	356	367	350
Items affecting comparability	78	21	30	12	19	–	-1	–2
Adjusted operating margin, %	17	20	19	18	23	23	23	22
Average invested capital	20,892	20,086	19,449	19,078	19,089	19,174	19,176	18,970
Segment cash RoIC, %	6.0	6.9	7.0	6.6	9.2	8.3	8.6	8.4

Strategic Markets

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2022	2022	2022	2022	2021	2021	2021	2021
Cash revenues	1,785	1,412	1,557	1,418	1,802	1,160	1,315	1,346
Cash EBIT	1,137	699	834	728	1,310	482	572	645
Revenues	1,943	1,516	1,683	1,517	1,903	1,257	1,416	1,434
– thereof external clients	1,780	1,405	1,557	1,418	1,802	1,160	1,315	1,346
– thereof intercompany	163	112	126	99	101	97	101	88
revenues
Adjusted revenues	1,943	1,516	1,683	1,517	1,903	1,257	1,416	1,434
Segment earnings	675	23	556	427	901	265	370	439
Adjusted segment earnings	952	483	597	482	1,142	271	373	439
Items affecting comparability	278	460	41	55	242	-6	-3	–
Adjusted operating margin, %	49	32	35	32	60	22	26	31
Average invested capital	15,182	15,056	14,845	14,719	15,118	15,526	15,674	15,699
Segment cash RoIC, %	30.0	18.6	22.5	19.8	34.7	12.4	14.6	16.4

Q4 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 Year end report, fourth quarter 2022 16

Portfolio Investments

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2022	2022	2022	2022	2021	2021	2021	2021
Cash revenues	3,825	3,356	3,690	3,320	3,195	3,166	3,265	2,864
Cash EBITDA	2,955	2,532	2,816	2,486	2,375	2,350	2,402	2,089
Cash EBIT	1,234	999	1,065	942	901	907	925	830
Gross cash collections	3,652	3,170	3,459	3,145	3,008	2,961	3,108	2,740
Portfolio amortisation	-1,552	-1,206	-1,329	-1,233	-1,111	-1,072	-1,120	-1,007
Portfolio revaluation	15	40	54	7	17	112	3	2
Other Portfolio Investments	105	119	119	87	98	138	107	80
segment revenues
Items affecting comparability	408	–	–	–	–	–	–	–
revenues
Revenues	2,628	2,124	2,303	2,006	2,012	2,138	2,098	1,816
Segment earnings	-1,230	-1,169	1,497	1,293	1,312	1,198	1,303	1,231
Adjusted segment earnings	1,455	1,438	1,465	1,290	1,337	1,305	1,353	1,234
Portfolio investments	1,240	1,326	3,131	1,689	2,342	1,420	1,739	1,503
Total carrying value of portfolio investments	37,109	39,693	41,869	39,113	38,231	36,179	35,629	35,104
– thereof purchased receivables	35,645	35,161	34,827	32,262	31,478	29,840	29,300	28,984
– thereof joint ventures	1,162	4,236	6,732	6,520	6,438	6,013	5,983	5,726
– thereof real estate	302	296	310	331	315	326	347	394
Adjusted return on portfolio investments, ROI, %	15	14	14	13	14	14	15	14
Amortisation ratio, %	43	38	38	39	37	36	36	37
ERC	77,634	82,832	81,976	76,092	74,337	70,322	69,107	68,263
Replenishment capex	-1,721	-1,533	-1,751	-1,545	-1,474	-1,443	-1,477	-1,259
Money-on-money multiple (RTM)	2.12	2.07	1.98	2.04	2.04	2.05	2.10	2.18
Average invested capital	38,968	41,587	41,194	39,289	37,798	36,478	35,888	34,673
Segment cash RoIC ,%	12.7	9.6	10.3	9.6	9.5	9.9	10.3	9.6

Money-on-money multiple

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
	2022	2022	2022	2022	2021	2021	2021	2021
Purchase price of portfolios	1,147	1,347	3,120	1,675	2,133	1,445	1,680	1,443
acquired in quarter
ERC 180 months of portfolios	2,528	3,096	5,589	3,667	4,239	2,794	3,414	3,190
acquired in quarter
Quarterly MoM	2.20	2.30	1.79	2.19	1.99	1.93	2.03	2.21
RTM MoM (average of	2.12	2.07	1.98	2.04	2.04	2.05	2.10	2.18
quarterly MoM)
In quarter collections	3,652	3,170	3,459	3,145	3,008	2,961	3,108	2,740
RTM MoM (average of quarterly MoM)	2.12	2.07	1.98	2.04	2.04	2.05	2.10	2.18
Replenishment capex	-1,721	-1,533	-1,751	-1,545	-1,474	-1,443	-1,477	-1,259
	Full year				Full year
	2022				2021
Replenishment capex	-6,550				-5,654

Financial report

Condensed consolidated income statement

	Fourth quarter			Full year
	Oct–Dec	Oct–Dec
SEK M	2022	2021	2022	2021
Revenues from clients	3,443	2,957	11,263	10,149
Revenues from portfolio investments calculated	2,099	1,897	8,105	7,507
using the effective interest method
Positive revaluations of portfolio investments	545	321	1,795	1,789
Negative revaluations of portfolio investments	-530	-304	-1,678	-1,656
Total revenues	5,557	4,870	19,485	17,789
Cost of sales	-3,048	-2,428	-11,433	-9,555
Gross earnings	2,509	2,441	8,053	8,233
Sales, marketing and administrative expenses	-693	-525	-2,676	-2,051
Participation in associated companies and joint	-2,970	124	-5,223	293
ventures
Operating earnings (EBIT)	-1,153	2,040	154	6,475
Net financial items	-1,761	-565	-3,404	-2,174
Profit before tax	-2,914	1,476	-3,250	4,301
Taxes	-662	-225	-1,129	-910
Net earnings for the period	-3,576	1,251	-4,379	3,391
Of which attributable to:
Parent company's shareholders	-3,633	1,085	-4,473	3,127
Non-controlling interest	57	166	93	265
Net earnings for the period	-3,576	1,251	-4,379	3,391
Average no of shares before dilution, '000	120,537	120,797	120,637	120,828
Average no of shares after dilution, '000	120,537	120,799	120,637	120,830
Earnings per share before dilution
Profit from continuing operations, SEK	-30.14	8.98	-37.07	25.88
Total earnings per share before dilution, SEK	-30.14	8.98	-37.07	25.88
Total earnings per share after dilution, SEK	-30.14	8.98	-37.07	25.88

Condensed consolidated statement of comprehensive income

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2022	2021	2022	2021
Net earnings for the period	-3,576	1,251	-4,379	3,391
Other comprehensive earnings, items that will be reclassified to profit and loss:
Currency translation difference	1,121	1,051	3,868	1,753
Comprehensive income for the year attributable to	-62	-411	-1,017	-411
hedging of currency and other
Other comprehensive earnings, items that will not be reclassified to profit and loss:
Remeasurement of pension liability	129	64	126	51
Comprehensive income for the period	-2,388	1,954	-1,402	4,785
Of which attributable to:
Parent company's shareholders	-2,495	1,750	-1,737	4,446
Non-controlling interest	107	204	335	338
Comprehensive income for the period	-2,388	1,954	-1,402	4,785

Condensed consolidated balance sheet

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

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

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	24,688	18,676	2,915	21,591
Dividends paid	-1,632	-392	-2,024	-1,451	-244	-1,696
Treasury shares	-72		-72	-41		-41
Share base payment	10		10	68		68
Change in non-controlling	272	-272	0		-20	-20
interest
Comprehensive earnings	-1,737	334	-1,402	4,446	338	4,784
for the period
Closing balance,	18,540	2,659	21,200	21,698	2,989	24,687
December 31

Condensed consolidated cash flow statement

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
	2022	2021	2022	2021
Operating activities
EBIT	-1,153	2,040	154	6,475
Depreciation/amortisation and impairment	553	518	2,038	1,500
Amortisation/revaluation of portfolio investments	1,537	1,095	5,204	4,178
Other adjustment for items not included in cash flow	2,851	-84	5,170	-263
Gain on sale of subsidiries	-408	–	-408	–
Interest received	32	5	85	22
Interest paid	-575	-356	-2,274	-1,822
Other financial expenses paid	-1,119	-69	-1,237	-213
Earnings tax paid	-245	-68	-1,444	-893
Cash flow from operating activities before changes	1,472	3,082	7,286	8,985
in working capital
Changes in factoring receivables	115	29	-65	-115
Other changes in working capital	-473	96	-716	1,172
Cash flow from operating activities	1,114	3,206	6,506	10,042
Investing activities
Purchases of intangible fixed assets	-88	-85	-275	-262
Purchases of tangible fixed assets	-43	-23	-87	-72
Sale of tangible and intangible fixed assets	10	4	11	3
Portfolio investments in receivables	-1,802	-2,333	-7,109	-7,038
Property holdings	5	10	27	70
Purchases of shares in subsidiaries and associated	-279	–	-279	–
companies
Proceeds from divestment of subsidiaries	781	–	781	–
Other cash flow from investing activities	119	-253	352	-710
Cash flow from investing activities	-1,298	-2,680	-6,579	-8,009
Financing activities
Borrowings and repayment of loans	-1,958	732	-130	2,139
Repurchase of shares	–	–	-72	-41
Share dividend to parent company's shareholders	–	–	-1,632	-1,451
Dividend to non-controlling shareholders	-23	-63	-392	-244
Cash flow from financing activities	-1,981	669	-2,226	401
Total change in liquid assets	-2,164	1,195	-2,300	2,434
Opening balance of liquid assets	4,541	3,372	4,553	2,134
Exchange rate differences in liquid assets	1,097	-14	1,221	-15
Closing balance of liquid assets	3,474	4,553	3,474	4,553
Group total
Cash flow from operating activities	1,114	3,206	6,506	10,042
Cash flow from investing activities	-1,298	-2,680	-6,579	-8,009
Cash flow from financing activities	-1,981	669	-2,226	401

Condensed income statement – parent company

	Full year
SEK M	2022	2021
Revenues	891	690
Gross earnings	891	690
Sales and marketing expenses	-41	-33
Administrative expenses	-1,780	-1,037
EBIT	-930	-380
Earnings from subsidiaries	0	0
Exchange rate differences on monetary items classified as expanded investment	591	-316
and hedging activities
Net financial items	-765	912
Earnings before tax	-1,105	216
Tax	276	0
Net earnings for the period	-828	216

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

Condensed balance sheet – parent company

	31 Dec	31 Dec
SEK M	2022	2021
ASSETS
Fixed assets
Intangible fixed assets	547	507
Tangible fixed assets	6	10
Financial fixed assets	80,936	73,991
Total fixed assets	81,490	74,508
Current assets
Current receivables	1,437	1,930
Cash and cash equivalents	545	602
Total current assets	1,982	2,532
TOTAL ASSETS	83,472	77,040
SHAREHOLDERS' EQUITY AND LIABILITIES
Restricted equity	830	786
Unrestricted equity	6,464	10,212
Total shareholders' equity	7,294	10,998
Long-term liabilities	68,238	55,498
Current liabilities	7,940	10,544
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	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 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 891 M (690) for the full year and earnings before tax of SEK -1,105 M (216). The Parent Company invested SEK 48 M (238) in fixed assets for the quarter and at the end of the quarter held SEK 545 M (602) in cash and cash equivalents. The average number of employees was 97 (60).

Development in the period

Total assets as of December 31, 2022, of SEK 88,711 M, was flat as compared of the same period of last year, of SEK 88,905 M.

The increase in Portfolio Investments of SEK 4,167 M was offset by negative adjustments mainly caused by lowered collection expectations on specific portfolios invested via joint venture arrangements, principally the Italian SPVs as identified as part of the regular revaluation process. The book value of the italian joint ventures reduced by SEK 5,548 M to SEK 212 M, the movement was recognised in Participation in associated companies and joint ventures in the profit and loss. As a direct consequence client relationships reduced by SEK 591 M to SEK 829 M, the movement was recognised in cost of sales in the profit and loss. For the client relationship impairment the discount rate of 7.7% was used compared to 14.1% at initial recognition.

In addition, fair value loss following the exercise on a derivative related to the above Italian JV and amounting to SEK 1,091 M was recognised in net financial items in the profit and loss.

Net FX movement was mainly due to SEK/EUR exposure which changed by a positive SEK 2,557 M at the end of 2022. Working capital was SEK -589 M at the end of December 2022 compared to the SEK -1,244 M at the end of December 2021. The share of revenues denominated in EUR amounted to 71 per cent (60).

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. 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 46,958 M (42,589) at the end of the quarter, fair value is, however, estimated at SEK 42,528 M (45,006). The Group also holds forward exchange contracts and other financial assets of SEK 253 M (107), as well as financial liabilities of SEK 138 M (173) carried at fair value through the income statement.

Financing

Net debt amounted to SEK 53,185 M (48,277), the share of fixed rate debt amounts to 73 per cent 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 4.0x compared to 3.9x at the end of the fourth quarter 2021. By the end of the fourth quarter, Intrum had SEK 1,130 M (3,998) 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 8,430 M (4,060) 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 October–30 December 2022, 45,091,631 shares were traded for a total value of SEK 6,068 M, corresponding to 37 per cent of the total number of shares at the end of the period.

The highest price paid during the period 1 October–30 December 2022 was SEK 167.2 (15 November) and the lowest was SEK 111.5 (20 December). On the last trading day of the period, 30 December 2022, the price was SEK 126.2 (latest paid). During the period 1 October–30 December 2022, Intrum AB's (publ) share price fell by 9 per cent, while Nasdaq OMX Stockholm rose by 6 per cent.

Share price, SEK (1 January 2020 – 30 December 2022)

Shareholders

		Capital and
30 September 2022	No of shares	Votes, %
Nordic Capital through companies	43,879,929	36,0
AMF Pension & Fonder	11,875,900	9,8
Första AP-fonden	3,143,082	2,6
Vanguard	2,721,842	2,2
TIAA - Teachers Advisors	2,363,983	1,9
Capital Group	2,150,237	1,8
Swedbank Robur Fonder	2,145,402	1,8
Avanza Pension	2,004,274	1,6
C WorldWide Asset Management	1,698,225	1,4
Intrum AB	1,183,983	1,0
BlackRock	1,152,562	0,9
State Street Global Advisors	1,099,097	0,9
Handelsbanken Fonder	1,036,949	0,9
Dimensional Fund Advisors	913,224	0,8
Norges Bank	906,861	0,7
Total fifteen largest shareholders	78,275,550	64.3
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 39.1 per cent (institutions 8.4 percentage points, mutual funds 14.4 percentage points and private individuals 16.3 percentage points).

Currency exchange rates

	Closing	Closing	Average	Average	Average
	rate	rate	rate	rate	rate
	31 Dec	31 Dec	Oct–Dec	Oct–Dec	Jan–Dec
	2022	2021	2022	2022	2021
1 EUR=SEK	11.12	10.25	10.63	10.14	10.48
1 CHF=SEK	11.29	9.92	10.59	9.38	9.80
1 NOK=SEK	1.06	1.03	1.05	0.99	0.98
1 HUF=SEK	0.0277	0.0277	0.0272	0.0283	0.0299

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 26 januari 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, 26 January 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

26 January 2023	Full-year report 2022
27 April 2023	Interim report for the first quarter
27 April 2023	Annual General Meeting
20 July 2023	Interim report for the second 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