Intrum — Interim / Quarterly Report 2024

Jan 30, 2025

Year end report

Fourth quarter 2024 highlights

• Solid end to 2024 with improved Servicing profitability and Investing collections exceeding expectations
• Income and Adjusted Income slightly down 4% vs. Q4'23 and up 2 % vs. FY '23
• Adjusted EBIT up by 5% vs. Q4'23 and marginally up vs. FY '23
• Leverage ratio increased 0.1 to 4.5 primarily due to Cash EBITDA decreasing post asset sale
• Significant progress on strategic initiatives achieved: • U.S Chapter 11 plan confirmed, Swedish re-organisation application accepted
• Recapitalisation expected to be closed by H1 2025
• Agreed to acquire 12 portfolios with Cerberus under Investment Partnership to date, totaling >2bn SEK
• Ophelos rolled out to five markets and operational impact further validated in BE-NL; >9 markets to be implemented by YE 2025
• Unadjusted Accounting Metrics for 2023 and 2024 throughout the report have been adjusted to remove discontinued operations, mainly related to the portfolio investment back-book sale agreed in Jan'24, and are aligned to the Primary Financial Statements on page 12 onwards
• Board of Directors of Intrum AB do not intend to propose a dividend payable for 2024 to the next Annual Meeting.

Fourth quarter, 2024 Fourth quarter Full year

	Oct–Dec	Oct–Dec	Change			Change
SEK M, unless otherwise indicated	2024	2023	%	2024	2023	%
Unadjusted Accounting Metrics1
Income	4,825	5,007	-4	18,033	17,705	2
EBITDA	1,257	1,901	-34	3,578	4,313	-17
EBIT	570	1,361	-58	1,941	2,777	-30
Net (Loss)/ Income attributable to the Parent Company's shareholders	-914	17	N/M	-3,697	57	N/M
Adjusted Accounting Metrics1
Adjusted Income	4,825	5,007	-4	18,033	17,705	2
Adjusted EBITDA	2,051	2,014	2	5,824	5,887	-1
Adjusted EBIT	1,696	1,616	5	4,548	4,464	2
Adjusted Cash Metrics1
Cash Income	5,714	5,866	-3	21,577	21,064	2
Cash EBITDA from continuing operations	2,918	2,789	5	9,287	9,137	2
Investing Segment: Capex Deployed	277	532	-48	1,383	5,508	-75
Cash EBITDA including discontinued operations				10,866	13,001
Net Debt before Other Obligations/RTM Cash EBITDA including discontinued operations, x				4.5x	4.4x

1) 2024 and 2023 comparatives exclude discontinued operations throughout the report, see page 5 and 6 for a detailed breakdown

Solid Q4 Performance and Significant Progress on Strategic Initiatives

As the undisputed European leader in credit management, Intrum is at the forefront of supporting clients and consumers facing increasing financial pressure and uncertainty. We are a critical part of the financial ecosystem, and we help people get out of debt and on a path to recovery whilst providing our clients with an exceptional service.

Maintaining market leadership

As the world around us continues to change, it impacts not only our clients and consumers, but also Intrum. We must always adapt and take decisive and thoughtful actions to evolve as a business and maintain our market leadership. As such, in the Autumn of 2023, we launched a revised strategic agenda and operating model, in the form of our capital-light strategy. This is aimed at reducing leverage, driving technology-led operational efficiencies through the integration of AI, increasing commercial focus, and leveraging third-party capital to grow our investment business. Since then, our full focus has been to execute on this strategy. During this transition, we are fortunate to benefit from a macro environment, driving high demand for credit management services. For example, Stage 3 loans in EU have increased EUR 2.4 bn between Q3 and Q2 2024 to reach 2.2% of total loans.

Successfully delivering on our strategy

Now that we conclude 2024, I am pleased to report that the Intrum team is delivering on what we set out to do. Throughout the year, we have made consistent, diligent and impactful progress across our three strategic pillars: operational excellence, client focus, and our shift towards a capital-light operating model. This progress has been achieved while maintaining full commercial focus and enhancing the value we create for clients and customers.

Since the inception of our revised strategic agenda and operating model, we have made significant strides including:

• Marked improvements to Servicing profitability achieved with more to come in 2025. Servicing improved its adjusted EBIT margin from 16% to 19% (above our YE2024 target).
• Investing collections coming in at 103 % vs. active forecast for the full year (111% of original forecast) despite a challenging macroeconomic environment.
• We sold part of our back-book and won new portfolios to co-invest with Cerberus to kick start our capital light strategy and begin our transformation to an Investment Management platform. Total capex for portfolios amount to SEK 2,266 M at an expected IRR of 18.5, of which Intrum committed SEK 680 M. Net cash extraction from our investment portfolio remains at high level on RTM basis: SEK 6.6 bn vs. average of SEK 3.5 bn over last three years.
• Ophelos has been rolled out to five markets and has demonstrated meaningful benefits in cost-to-collect and collections. Based on roll out in the Netherlands, we see a decreased costto-collect of 22%, while collections rate went up 25%. We expect to be up and running in five additional markets by 2025, reaching a footprint totalling nearly 60% of our commercial activity.
• We made significant progress to improve our capital structure and aligning our debt maturities to the company's transformation journey. More of this below.

"Throughout the year, we have made consistent, diligent and impactful progress across our three strategic pillars: operational excellence, client focus, and our shift towards a capital-light operating model."

Overwhelming support from creditors, shareholders and customers

Intrum's work towards completing the Recapitalisation Transaction continues at pace – and with overwhelming support from all our stakeholders. We continue to operate as normal with no disruptions, while our employees across the group seamlessly provide critical services for clients and customers.

At the end of the quarter, the pre-packaged Chapter 11 plan was confirmed by a US Court, followed in early January by the Stockholm District Court's approval of our petition to initiate a Swedish Company Reorganisation. On 24 January, the creditors' meeting took place as planned and the process continues. Assuming the process continues, the next step of the Swedish Company Reorganisation will take place in March when creditors will cast votes on our plan. Importantly, creditors who have signed the lock up agreement (97% of banks and 73% of bondholders) are legally committed to vote in favour.

Following the satisfaction of all conditions precedent, expected in H1 2025, the Recapitalisation Transaction will become effective, and the existing bonds will be exchanged with the new instruments.

Accelerating our momentum in 2025

We expect to emerge from the Recapitalisation Transaction with ample runway to execute our business plan effectively. Looking ahead to 2025, I am confident that we will continue to deliver consistent progress across our strategic pillars and towards our financial targets.

I would like to take the time to express my deep appreciation to the full Intrum team for their fantastic commitment and to our creditors, shareholders and clients for their overwhelming support. We will continue to execute on both the recapitalisation and our strategy with speed and purpose, and I look forward to staying in close contact with all our stakeholders throughout the year.

Stockholm, January 2025

Andrés Rubio President & CEO "Intrum's work towards completing the Recapitalisation Transaction continues at pace – and with overwhelming support from all of our stakeholders, we continue to operate with no disruptions."

Key financial metrics

Quarterly development

Adjusted Quarterly development

Adjusted EBIT increased by 5% to SEK 1,696 million (2023: SEK 1,616 million) for the quarter and by 2% to SEK 4,548 million (2023: SEK 4,464 million) for the year. The year-on-year income growth (2%) is offset by higher costs driven by nonrecurring items largely related to financial and operational restructuring. Unadjusted EBIT for the quarter decreased 58% to SEK 570 M from SEK 1,361 in Q4'23. This is due to marginally weaker income (-4%) coupled with 12% higher total costs, although adjusted costs continue to decrease, during the quarter. EBIT for the full year landed at SEK 1,941 M, 30% below 2023 (2,777 M).

2024 has been a year of transition focused on restructuring the company's financial and operational framework, resulting in a number of exceptional items. Total costs amount to SEK 4,302 M (2023: 3,834 M) for the quarter and SEK 15,772 M (2023: 15,284 M) for the year. The Items Affecting Comparability (IAC) amounts to SEK 1,126 M for the quarter and SEK 2,610 M for the year with key items being impairments (SEK 1,040 M), M&A related (SEK 743 M) and group restructuring (SEK 336 M).

Underlying costs, excluding IACs, have decreased 11% to SEK 3,321 M (2023: 3,601 M) for the quarter and 6% to SEK 14,003 M (2023: 13,941 M) for the year. The cost saving programs launched and delivered in 2023 and 2024 are evident in our decreasing underlying cost base.

In our Servicing segment, we continue to display commercial momentum after a record breaking 2023 with new ACV signings of SEK 181 M in the quarter bringing total ACV signings for the full year 2024 to SEK 942 M. External Servicing income has decreased 6% SEK 3,425 M (2023: 3,624 M) on quarterly basis yet increased 2% to SEK 12,578 M (2023: 12,297 M) on annual basis. The servicing adjusted EBIT and adjusted EBIT margin for the quarter reached SEK 1,138 M and 30% respectively, compared to SEK 902 M in 2023 and SEK 2,672 M for full year, 26% above SEK 2,113 M in 2023.

The strong performance within the Investing segment continued for both the quarter and full year. For the quarter, collection performance came in above expectation at 103% (2023: 103%) of active forecast with an Adjusted ROI of 13% (2023: 14%). For the full year collection performance concluded at 101% (2023: 102%) with a ROI of 12% (2023: 14%).

The leverage ratio increased from 4.2 to 4.5 in the period, primarily due to a decrease in Cash EBITDA related to the H1 2024 asset sale, partly offset by an improved cash EBITDA year on year.

External Servicing Adjusted Income Growth, RTM bn

25% Total adjusted servicing margin

EBIT margin

Servicing Adjusted EBIT Margin, RTM

Investing BV excl. Revaluations, Quarter End Leverage Ratio, RTM

Leverage

3.5x

Leverage ratio by end of 2026

Segment overview

Key figures, 2024

	Fourth quarter, Oct–Dec 2024							Full year, 2024
	Including Discontinued Operations				Discontinued Operations				Including Discontinued Operations Discontinued Operations
				Elimi				Elimi					Elimi				Elimi
SEK M		Servicing Investing Central			nations Consolidated Servicing Investing				nations Consolidated Servicing Investing Central					nations Consolidated Servicing Investing				nation Consolidated
External Income	3,425	1,350	50	-	4,825	-	-	-	4,825	12,245	6,518	130	-	18,893	334	-1,194	-	18,033
Internal Income	414	-	45	-459	-	-	-	-	-	2,148	-		189 -2,337	-	-446	-	446	-
Income	3,839	1,350	95	-459	4,825	-	-	-	4,825	14,393	6,518		319 -2,337	18,893	-112	-1,194	446	18,033
Items Affecting Comparability in Income	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Adjusted Income	3,839	1,350	95	-459	4,825	-	-	-	4,825	14,393	6,518		319 -2,337	18,893	-112	-1,194	446	18,033
Direct Costs	-2,545	-591	-306	453	-2,989	-	-	-	-2,989	-9,414	-2,914	-415	2,294	-10,449	7	492	-446	-10,396
Indirect Costs	-694	-95	-535	11	-1,313	-	-	-	-1,313	-3,268		-425 -1,769	41	-5,421	17	24	-	-5,380
Share of Associates and Joint Ventures	7	178	-	-	185	-	-	-	185	36	218	-	-	254	-	263	-	517
Net Credit Gains / (Losses)	-	-47	-	-	-47	-	-	-	-47	-	-79	-	-	-79	-	-	-	-79
Other Operating Items	-91	-	-	-	-91	-	-	-	-91	-759	-	-	-	-759	-	-	-	-759
EBIT	516	795	-746	5	570	-	-	-	570	988		3,318 -1,865	-	2,441	-88	-415	-	1,941
Items Affecting Comparability in EBIT	622	41	464	-	1,126	-	-	-	1,126	1,772	199	639	-	2,610	-	-	-	2,610
Adjusted EBIT	1,138	836	-282	5	1,696	-	-	-	1,696	2,760		3,517 -1,226	-	5,051	-88	-415		4,548
Cash Income	3,839	2,239	95	-459	5,714	-	-	-	5,714	14,393	10,961		318 -2,337	23,336	-113	-2,090	444	21,577
Cash EBITDA	1,390	1,711	-183	-	2,918	-	-	-	2,918	3,726	8,096	-956		10,866	-89	-1,490	-	9,287
Adjusted Income	3,839	1,350	95	-459	4,825	-	-	-	4,825	14,393	6,518		319 -2,337	18,893
– thereof Northern Europe	746	251	-	-54	943	-	-	-	997	3,044	1,449	-	-375	4,119
– thereof Middle Europe	989	455	-	-145	1,299	-	-	-	1,444	3,903	2,074	-	-741	5,236
– thereof Southern Europe	1,994	374	-	-110	2,258	-	-	-	2,367	6,946	1,884	-	-553	8,277
– thereof Eastern Europe	110	271	-	-106	275	-	-	-	380	499	1,112	-	-479	1,132
– thereof Central	-	-	95	-45	50	-	-	-	-364	-	-	319	-189	130
Adjusted EBIT	1,138	836	-282	5	1,696	-	-	-	1,692	2,760		3,517 -1,226	-	5,051
– thereof Northern Europe	21	263	-	-	284	-	-	-	284	401	1,135	-	-	1,536
– thereof Middle Europe	168	192	-	-	360	-	-	-	360	384	869	-	-	1,253
– thereof Southern Europe	926	294	-	-	1,220	-	-	-	1,220	1,885	1,136	-	-	3,021
– thereof Eastern Europe	23	87	-	-	110	-	-	-	110	90	377	-	-	467
– thereof Central	-	-	-282	5	-277	-	-	-	-277	-		- -1,226		-1,226

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

Key figures, 2023

	Fourth quarter, Oct–Dec 2023							Full year, 2023
	Including Discontinued Operations					Discontinued Operations			Including Discontinued Operations					Discontinued Operations
				Elimi				Elimi					Elimi				Elimi
SEK M		Servicing Investing Central			nations Consolidated Servicing Investing				nation Consolidated Servicing Investing Central					nations Consolidated Servicing Investing				nation Consolidated
External Income	3,416	2,114	10	-	5,540	209	-742	-	5,007	11,444	8,545	12		20,001	854	-3,150	-	17,705
Internal Income	502	-	93	-595	-	-229	-	229	-	2,518	-		232 -2,750	-	-1,051		- 1,051	-
Income	3,918	2,114	103	-595	5,540	-20	-742	229	5,007	13,962	8,545		243 -2,750	20,001	-196		-3,150 1,051	17,705
Items Affecting Comparability in Income	-	-	-	-	-	-	-	-	-	-	-	-	-	-				-
Adjusted Income	3,918	2,114	103	-595	5,540	-20	-742	229	5,007	13,962	8,545		243 -2,750	20,001	-196		-3,150 1,051	17,705
Direct Costs	-2,372	-833	-53	573	-2,685	12	285	-229	-2,618	-8,881	-3,294		-234 2,701	-9,708	46		1,304 - 1,051	-9,409
Indirect Costs	-1,175	-66	-46	22	-1,265	19	30	-	-1,216	-3,732		-356 -1,971	49	-6,010	75	61	-	-5,874
Share of Associates and Joint Ventures	8	47	-	-	55	-	134	-	189	21	53	-	-	74	-	539	-	613
Net Credit Gains / (Losses)	-	2	-	-	2	-	-1	-	1	-	9	-	-	9	-	-266	-	-257
EBIT	379	1,264	3	-	1,646	9	-294	-	1,361	1,370		4,957 -1,962	-	4,366	-76	-1,512	-	2,777
Items Affecting Comparability in EBIT	515	26	-288	-	253	-	1	1	255	821	191	410	-	1,422	-	266		1,688
Adjusted EBIT	894	1,290	-285	-	1,899	9	-293	1	1,616	2,191		5,148 -1,552	-	5,787	-76	-1,246	-	4,464
Cash Income	3,918	3,540	102	-595	6,965	-20	-1,308	229	5,866	13,962	13,930		243 -2,750	25,385	-197		-5,175 1,051	- 21,064
Cash EBITDA	1,236	2,731	-235	-	3,732	7	-952	-	2,787	3,411		10,810 -1,365	-	12,856	-85	-3,638	-	9,137
Adjusted Income	3,918	2,114	103	-595	5,540	-	-	-	5,540	13,962	8,545		243 -2,750	20,000
– thereof Northern Europe	664	397	-	-89	972	-	-	-	972	2,736	1,692	-	-384	4,044
– thereof Middle Europe	861	644	-	-110	1,395	-	-	-	1,395	3,429	2,501	-	-847	5,083
– thereof Southern Europe	2,217	604	-	-166	2,655	-	-	-	2,655	7,047	2,444	-	-702	8,789
– thereof Eastern Europe	176	469	-	-137	508	-	-	-	508	750	1,908	-	-585	2,073
– thereof Central	-	-	103	-93	10	-	-	-	10	-	-	243	-232	11
Adjusted EBIT	893	1,289	-285	-	1,897	-	-	-	1,897	2,191		5,146 -1,551	-	5,786
– thereof Northern Europe	30	292	-	-	322	-	-	-	322	200	1,213	-	-	1,413
– thereof Middle Europe	74	343	-	-	417	-	-	-	417	196	1,313	-	-	1,509
– thereof Southern Europe	785	409	-	-	1,194	-	-	-	1,194	1,883	1,597	-	-	3,480
– thereof Eastern Europe	4	245	-	-	249	-	-	-	249	-88	1,023	-	-	935
– thereof Central	-	-	-285	-	-285	-	-	-	-285	-		- -1,551	-	-1,551	-	-	-

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

Servicing (excluding discontinued operations)

Credit management with a focus on late payments and collections.

		Fourth quarter	Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2024	2023	%	2024	2023	%
External Income1	3,425	3,624	-5	12,579	12,297	2
Internal Income1	414	272	52	1,702	1,468	16
Income1	3,839	3,896	-2	14,281	13,765	4
Items Affecting Comparability in Income1	-	-	-	-	-
Adjusted Income1	3,839	3,896	-2	14,281	13,765	4
Direct Costs1	-2,545	-2,360	8	-9,407	-8,837	6
Indirect Costs1	-694	-1,156	40	-3,251	-3,657	11
Share of Associates and Joint Ventures1	7	8	-13	36	21	71
Other Operating Items1	-91	-	-	-759	-	-
EBIT1	516	388	33	900	1,292	-30
Items Affecting Comparability in EBIT1	622	515	21	1,772	821	115
Adjusted EBIT1	1,138	903	26	2,672	2,113	26
Cash Income1	3,839	3,918	-1	14,281	13,765	4
Cash EBITDA1	1,390	1,243	12	3,637	3,324	9
KPIs
Change in Adjusted Income, %2	-6	17	-100	2	10	-80
– thereof organic growth	-6	-10	-40	-6	-6	-
– thereof acquisitions	-	23	-100	8	9	-
– thereof foreign exchange	1	4	-75	-	6	-100
Adjusted EBIT Margin, %1	30	23	30	19	16	19
Capex Deployed1	396	89	345	534	206	159

1) 2024 and 2023 comparatives have been restated in respect of discontinued operations, see page 5 and 6 for a detailed breakdown

2) 2024 "Change in Adjusted Income, %" KPIs have been restated in respect of discontinued operations. 2023 "Change in Adjusted Income, %" KPIs have not been restated

External income decreased 6% vs. Q4 '23 driven by negative organic growth in southern Europe which is a natural decline in portfolios (stock market) compared to our other markets which benefit from ongoing in-flows (flow market).

For the full year external income grew 2% driven by our M&A's activity in Spain and UK in H2 2023. Adjusted EBIT grew significantly in the fourth quarter with 26% to SEK 1,137 M compared to SEK 902 M in Q4 '23. For the full year adjusted EBIT grew 27% amounting to SEK 2,673 M compared to SEK 2,113 M in 2023.

The significant progress in adjusted EBIT is a result of lower cost-income ratio of 6% in Q4 and 2% for the full year compared to 2023 and this development is driven by cost-reductions and client profitability focus. As a result of the cost reduction adjusted EBIT margin significantly increased to 30% compared to 23% in Q4 '23 and for the full year adjusted EBIT margin came in at 19% vs. 16% in 2023.

We expect to see continued profitability progression and margin expansion in Servicing and a positive trajectory going into 2025.

Investing (excluding discontinued operations)

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

		Fourth quarter	Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2024	2023	%	2024	2023	%
Income1	1,350	1,372	-6	5,324	5,395	-1
Items Affecting Comparability in Income1	-	-	-	-	-	-
Adjusted Income1	1,350	1,372	-2	5,324	5,395	-1
– thereof REOs1	44	82	-	175	140
–thereof Other Income1	-	5	N/M	-	20	N/M
Direct Costs1	-591	-548	-8	-2,422	-1,989	22
Indirect Costs1	-95	-36	164	-401	-295	36
Share of Associates and Joint Ventures1	178	181	-2	481	592	-19
Net Credit Gains / (Losses) 1	-47	1	N/M	-79	-258	-69
EBIT1	795	970	-26	2,904	3,446	-30
Items Affecting Comparability in EBIT1	41	27	52	199	457	-56
Adjusted EBIT1	836	997	-16	3,103	3,903	-26
– thereof REOs1	414	-	N/M	457	-27	N/M
–thereof Other Income1	-	-	-	-	3
Cash Income1	2,239	2,232	-	8,901	8,855	1
Cash EBITDA1	1,711	1,779	-4	6,606	7,175	-8
KPIs
Internal Gross Collections	2,143	3,487	-39	10,729	13,748	-22
Amortisation %	41	41	-	41	39	5
Capex Deployed	277	532	-48	1,383	5,508	-75
ERC	53,067	76,058	-30	53,067	76,058	-30
Collection Index vs. Active Forecast	103	103	-	101	102	-1
Book Value	25,302	25,842	-2	25,302	25,842	-2
Adjusted Return on Portfolio Investments %	13	14	-7	12	14	-2

1) 2024 and 2023 comparatives have been restated in respect of discontinued operations, see page 5 and 6 for a detailed breakdown

The fourth quarter of 2024 was a strong quarter, with collection performance at 103% (103%) of active forecast for the quarter and 101% (102%) of active forecast for the year. Collection performance vs. original forecast amounted to 110% in the fourth quarter and 111% for the year.

Adjusted ROI was 13% (14%) for the quarter and 12% (13%) for the year. During the quarter, we invested SEK 512 M (SEK 532 M) in new portfolios with a net IRR of 20% (19%).

Cash Income came in flat at SEK 2,239 M (2,232). Cash EBITDA for the segment was SEK 1,711 M (2,734) and adjusted EBIT was SEK 836 M (997, down 4% and 16%, respectively, compared to the same quarter last year.

The decrease in the results versus last year is mainly explained by higher cost-to-collect compared to a year ago.

Our Book value decreased to SEK 25.3 bn from SEK 25.8 bn last quarter due to a low investment pace for the quarter, in line with our overall strategy to reduce our proprietary investing book, as part of our capital light strategy.

Adjusted 5 year financial overview

Adjusted Profit & Loss

		Fourth quarter
	Oct–Dec	Oct–Dec
SEK M	2024	2023	2024	2023	2022	2021	2020
Adjusted Income1	4,825	5,007	18,033	17,705	18,960	17,655	16,730
Adjusted Direct Costs1	-2,374	-2,434	-9,464	-9,052	-8,317	-7,910	-7,908
– thereof personnel1	-1,408	-1,320	-5,482	-4,930	-4,086	-3,968	-3,923
– thereof non-personnel1	-966	-1,114	-3,982	-4,122	-4,231	-3,942	-3,985
Adjusted Indirect Costs1	-947	-1,167	-4,539	-4,889	-4,524	-3,312	-3,389
– thereof personnel1	-554	-551	-2,292	-2,376	-2,097	-1,617	-1,511
– thereof non-personnel1	-393	-616	-2,247	-2,513	-2,427	-1,695	-1,878
Adjusted Share of Associates and Joint Ventures1	185	210	518	700	545	581	306
Adjusted EBIT1	1,696	1,616	4,548	4,464	6,664	7,014	5,739
Adjusted D&A1	355	398	1,276	1,423	1,453	1,318	1,529
Adjusted EBITDA1	2,051	2,014	5,824	5,887	8,117	8,332	7,268
Adjusted EBITDA1	2,051	2,014	5,824	5,887	8,117	8,332	7,268
Amortisation of Portfolio Investments1	889	860	3,544	3,360	5,320	4,311	4,308
Income from Associates and Joint Ventures1	-185	-210	436	-700	-545	-581	-306
Cash from Associates and Joint Ventures1	163	126	-517	590	347	248	338
Cash EBITDA from continuing operations1	2,918	2,790	9,287	9,137	13,238	12,310	11,608
Adjustment in respect of discontinued operations1			1,579
Cash EBITDA including discontinued operations1			10,866

1) 2024 and 2023 comparatives have been restated in respect of discontinued operations, see page 5 and 6 for a detailed breakdown

Net Debt Reconciliation

		Fourth quarter
	Oct–Dec	Oct–Dec
SEK M	2024	2023	2024	2023	2022	2021	2020
Borrowings	50,701	59,852	50,701	59,852	56,519	52,501	48,703
Lease Liability	710	637	710	637	712	805	871
Deferred Liabilities	416	348	416	348	384	406	1,073
Gross Debt	51,827	60,837	51,827	60,837	57,615	53,712	50,647
Cash and Cash Equivalents	-2,504	-3,966	-2,504	-3,966	-3,474	-4,553	-2,134
Net Debt before Other Obligations	49,324	56,871	49,324	56,871	54,141	49,159	48,513
Net Defined Benefit Liability	88	142	88	142	141	329	381
Payable to Non-controlling Interest	246	330	246	330	397	430	-
Net Debt after Other Obligations	49,658	57,343	49,658	57,343	54,679	49,918	48,894
Net Debt before Other Obligations/RTM cash EBITDA (proforma)	4.5	4.4	4.5	4.4	4.1	4.0	4.2

Reconciliation

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2024	2023	2024	2023
INCOME RECONCILIATION1
Income	4,825	5,007	18,033	17,705
Adjusted Income	4,825	5,007	18,033	17,705
Portfolio Amortisation	889	859	3,544	3,360
Cash Income	5,714	5,866	21,577	21,064
EBITDA RECONCILIATION1
EBIT	570	1,361	1,941	2,777
Depreciation and Amortisation	687	540	1,637	1,536
EBITDA	1,257	1,901	3,578	4,313
IAC - NCIs
Impairments / (Reversals)	335	40	1,010	124
Net Credit Gains/(Losses)	47	-2	79	-9
- thereof Portfolio Investment Gains	-551	-199	-1,504	-1,258
- thereof Portfolio Investment Losses	598	197	1,583	1,249
Net Credit Gains/(Losses) from discontinued	-	2	-	266
operations
IAC - Restructuring
IT Transformational Costs	-	61	-	308
Merger & Acquisition	286	57	743	88
Group Restructuring	128	-45	296	676
- therof cost saving program	34	-42	99	541
IAC - NRIs
Hungarian Tax Effects	-2	-	118	90
Adjusted EBITDA	2,051	2,014	5,824	5,887
Cash Adjustments
Income from Associates and JVs	-185	-210	-517	-700
Cash from Associates and JVs	163	126	436	590
Portfolio Amortisation	889	859	3,544	3,360
Cash EBITDA	2,918	2,789	9,287	9,137

1) 2024 and 2023 comparatives have been restated in respect of discontinued operations, see page 5 and 6 for a detailed breakdown

Group overview

Yearly overview, Group

SEK M	2024	2023	2022	2021	2020	SEK M	2024	2024	2024	2024	2023
Income1	18,033	17,705	19,368	17,655	16,880
EBIT1	1,941	2,776	154	6,475	4,695
Net Income/(Loss) attributable to Parent company's shareholders1	-3,697	-187	-4,473	3,127	1,881	Net Income/(Loss) attributable to Parent company's
Earnings Per Share, SEK1	-30,84	-1.56	-37.07	28.88	15.18	shareholders1
Adjusted Income1	18,033	17,705	18,960	17,655	16,730
Adjusted EBIT1	4,548	4,464	6,664	7,014	5,739
Adjusted Net Income/(Loss) attributable to Parent	-534	845	1,835	3,487	2,689
company's shareholders1						Adjusted Net Income/(Loss) attributable to Parent company's
Return on equity, %1	-27	-1	-22	15	9	shareholders1
Equity per share, SEK1	111.01	138.89	153.68	183.33	154.28
Average number of employees (FTEs)	10,002	10,222	9,965	9,694	9,379

1) 2023 comparatives have been restated in respect of discontinued operations, see page 5 and 6 for a detailed breakdown

Quarterly overview, Group

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2024	2024	2024	2024	2023	2023	2023	2023
Income1	4,825	4,171	4,607	4,430	5,007	4,378	4,352	3,968
EBIT1	570	-127	1,024	476	1,356	54	704	662
Net Income/(Loss) attributable to Parent company's shareholders1	-914	-1,210	-1,334	-238	187	-411	14	23
Earnings Per Share, SEK1	-7.56	-10.04	-11.06	-1.98	1.56	-3.41	0.11	0.19
Adjusted Income1	4,825	4,171	5,006	4,891	5,540	4,959	4,978	4,524
Adjusted EBIT1	1,696	951	1,254	1,155	1,899	1,353	1,468	1,068
Adjusted Net Income/(Loss) attributable to Parent company's shareholders1	-77	-402	89	-144	345	222	136	133
Return on equity, %1	-27	-19	-12	-3	-1	-21	-30	-27
Equity per share, SEK1	-11.01	114.33	110.75	142.71	138.89	152.11	160.83	154.58
Number of employees (FTEs)	9,354	9,664	10,331	10,671	11,099	11,066	10,907	10,240

1) 2024 and 2023 comparatives have been restated in respect of discontinued operations, see page 5 and 6 for a detailed breakdown

Regional Overview

Quarterly

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2024	2024	2024	2024	2023	2023	2023	2023
Northern Europe
External Income	943	919	1,152	1,103	1,145	1,205	1,232	1,137
Internal Income	54	58	138	125	129	141	146	128
Income	997	978	1,289	1,228	1,274	1,346	1,378	1,265
EBIT	259	115	349	374	377	385	524	332
Adjusted Income	997	978	1,289	1,228	1,274	1,346	1,378	1,265
Adjusted EBIT	284	385	479	389	407	477	493	372
Middle Europe
External Income	1,299	1,220	1,362	1,355	1,396	1,372	1,206	1,109
Internal Income	145	148	206	242	108	229	258	252
Income	1,444	1,368	1,568	1,597	1,504	1,601	1,464	1,362
EBIT	310	-173	327	227	304	418	188	336
Adjusted Income	1,444	1,368	1,568	1,597	1,504	1,601	1,464	1,362
Adjusted EBIT	360	266	338	288	418	396	350	345
Southern Europe
External Income	2,258	1,749	2,159	2,112	2,655	2,019	2,177	1,937
Internal Income	110	110	166	167	167	180	204	152
Income	2,368	1,858	2,325	2,279	2,822	2,199	2,381	2,089
EBIT	621	198	575	654	806	544	842	664
Adjusted Income	2,258	1,858	2,325	2,279	2,822	2,199	2,381	2,089
Adjusted EBIT	1,129	466	625	713	1,195	706	887	693
Eastern Europe
External Income	275	267	304	287	333	362	358	340
Internal Income	106	120	162	91	98	107	111	109
Income	381	387	466	378	431	469	470	449
EBIT	121	152	254	-55	156	218	186	34
Adjusted Income	381	387	466	378	431	469	470	449
Adjusted EBIT	110	144	138	76	163	177	153	95

Segment overview

Quarterly

	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
SEK M	2024	2024	2024	2024	2023	2023	2023	2023
Servicing
External Income1	3,425	2,904	3,181	3,068	3,624	3,016	2,947	2,711
Internal Income1	414	437	448	403	273	385	436	373
Income1	3,839	3,341	3,629	3,471	3,897	3,401	3,383	3,084
EBIT1	516	-336	559	162	387	288	405	213
Adjusted Income1	3,839	3,341	3,629	3,471	3,897	3,401	3,383	3,084
Adjusted EBIT1	1,138	589	635	312	902	406	517	288
Adjusted EBIT Margin, %1	30	18	17	9	23	12	15	9
Investing
Income1	1,350	1,250	1,396	1,328	1,373	1,362	1,404	1,256
EBIT1	795	629	731	748	972	816	763	895
Adjusted Income1	1,350	1,250	1,396	1,328	1,373	1,362	1,404	1,256
– thereof REOs1	44	44	60	28	49	34	35	23
–thereof Other Income1	0	-	-	-	-	5	8	7
Adjusted EBIT1	836	673	731	864	998	999	990	915
Investing Segment: Capex Deployed	277	311	425	371	532	530	2,783	1,664
Adjusted ROI, %	13	10	14	12	14	14	14	13
ERC	53,067	53,848	55,464	75,291	76,058	81,522	86,066	78,539

1) 2024 and 2023 comparatives have been restated in respect of discontinued operations, see page 5 and 6 for a detailed breakdown

Financial report

Consolidated Statement of Income

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2024	2023	2024	2023
Servicing Income	3,201	3,388	11,791	11,171
Interest Income	1,255	1,339	5,093	5,232
Other Income	369	280	1,149	1,302
Income	4,825	5,007	18,033	17,705
Direct costs	-2,806	-2,618	-10,209	-9,409
Gross Earnings	2,020	2,389	7,824	8,296
Net Credit Gains/(Losses)	-47	-1	-79	-258
Other Operating Items	-90	-	-758	-
Shares of Associates and Joint Ventures	185	189	517	613
Operating Income	2,068	2,577	7,504	8,651
Indirect Costs	-1,499	-1,209	-5,563	-5,875
Net Operating Income/EBIT	570	1,368	1,941	2,776
Net Financial Expense	-913	-820	-3,301	-2,944
Income before taxes	-344	548	-1,360	-168
Taxes	-423	-531	-624	-419
Net Income/(loss) from continuing operations	-767	17	-1,985	-587
Net Income/(loss) from discontinuing operations	-	262	-1,360	644
Net Income/(loss) for the period	-767	279	-3,345	57
Of which attributable to
Parent company shareholders	-914	187	-3,697	-188
Non-controlling interest	147	91	351	244
Average Number of Shares:
Before dilution	120,537	120,537	120,537	120,537
After dilution	120,537	120,537	120,537	120,537
Net income/(loss) Per Share
Before dilution	-7.58	1.55	-30.67	-1.56
After dilution	-7.58	1.55	-30.67	-1.56
Discontinued Income/(loss) Per Share
Before dilution	0.00	2.17	-11.28	5.34
After dilution	0.00	2.17	-11.28	5.34

Consolidated statement of Other Comprehensive Income

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
SEK M	2024	2023	2024	2023
Net Income/(loss) from continuing operations	-767	17	-1,985	-587
Net Foreign Exchange Translation Differences	791	-1,792	-383	-247
Net Investment Hedging Gains / (Losses)	-71	743	648	261
Items Subsequently Reclassified to Statement of	719	-1,049	264	14
Income
Net Defined Pension Benefit Remeasurement	16	-9	11	-12
Items Not Subsequently Reclassified to Statement	16	-9	11	-12
of Income
Comprehensive income from continuing operations	-32	-1,041	-1,710	-585
Comprehensive income from discontinuing operations	-	262	-1,361	644
Comprehensive income/(loss) for the period	-32	-779	-3,071	59
Of which attributable to
Parent company shareholders	-138	-772	-3,337	-182
Non-controlling interest	106	-8	266	240
Comprehensive income/(loss) for the period	-32	-780	-3,071	59
Average Number of Shares:
Before dilution	120,537	120,537	120,537	120,537
After dilution	120,537	120,537	120,537	120,537
Total Comprehensive Income/(loss) Per Share
Before dilution	-1.14	-6.40	-27,68	-1.51
After dilution	-1.14	-6.40	-27.68	-1.51

Consolidated statement of financial position

SEK M	31 Dec 2024	31 Dec 2023
ASSETS
Intangible Assets	39,184	39,829
Portfolio Investments	22,695	35,294
Investment in Associates and Joint Ventures	2,352	823
Property, Plant and Equipments	225	280
Right of Use Assets	679	584
Deferred Tax Assets	1,986	2,197
Other Financial Assets	890	175
Total Non-Current Assets	68,011	79,183
Assets Held for Sale	-	496
Property Holdings	287	329
Tax Receivable	935	686
Derivatives	16	324
Receivables and Other Operating Assets	5,213	4,316
Fiduciary Assets	1,281	1,106
Cash and Cash Equivalents	2,504	3,769
Total Current Assets	10,236	11,025
TOTAL ASSETS	78,247	90,208

SEK M	31 Dec 2024	31 Dec 2023
LIABILITIES & SHAREHOLDERS' EQUITY
Net Pension Benefit Liability	88	142
Borrowings	37,892	51,899
Other Financial Liability	616	641
Provisions	158	107
Deferred Tax Liability	1,106	1,411
Lease Liability	526	436
Total Non-Current Liabilities	40,386	54,636
Liabilities Held for Sale	-	100
Borrowings	12,809	7,953
Tax Payable	562	572
Payables and Other Operating Liabilities	7,248	6,041
Derivatives	61	303
Fiduciary Liabilities	1,281	1,106
Provisions	248	376
Lease Liability	185	193
Total Current Liabilities	22,394	16,644
Total Liabilities	62,780	71,280
Share Capital	3	3
Reserves	21,370	18,428
Retained Earnings	-7,985	-1,679
Shareholders' Equity	13,388	16,752
Non-Controlling Interest	2,079	2,176
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	78,247	90,208

Consolidated statement of changes in Equity

					Total Shareholders' equity
				Retained earnings incl.	attributable to Parent	Non-controlling	Total
SEK M	Share capital	Other paid-in capital	Reserves	net earnings for the year	Company Shareholders	interests	Shareholders' equity
Opening balance, January 1 2024	3	17,442	5,977	-6,671	16,753	2,176	18,929
Comprehensive income, 2024
Net earnings for the year	-	-		-3,697	-3,697	351	-3,346
Other Comprehensive income for the year
Pension				11	11	-	11
Foreign Exchange Differences	-	-	-193	-	-193	-85	-278
Net Investment Hedging Differences	-	-	542	-	542	-	542
Share Dividend	-	-	-	-	-	-285	-285
Share-based Employee Remuneration	-	-	-26	-	-26		-26
NCI Share Repurchases	-	-	-	-	-	-79	-79
Closing balance, 31 Dec 2024	3	17,442	6,300	-10,357	13,388	2,078	15,466
Opening balance, January 1 2023	3	17,442	5,963	-4,869	18,539	2,661	21,200
Comprehensive income, 2023
Net earnings for the year	-	-		-188	-188	243	56
Other Comprehensive income for the year
Foreign Exchange Differences	-	-	-247	-	-247	-1	-248
Net Investing Hedging Differences	-	-	281	-	281	-	281
Defined Benefit Pension Remeasurement	-	-	-	-7	-7	-3	-10
Differences
Income tax on other Comprehensive Income	-	-	-20	-	-20	-	-20
Total comprehensive income for the year	-	-	14	-195	-181	238	59
Share Dividend	-	-	-	-1,627	-1,627	-380	-2,007
Share-based Payment	-	-	-	-	-	-	-
Share-based employee remuneration	-	-	-	21	21	-	21
NCI Share Repurchases	-	-	-	-	-	-345	-345
Closing balance, 31 Dec 2023	3	17,442	5,977	-6.670	16,752	2,176	18,928

Consolidated statement of cash flow

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec
	2024	2023	2024	2023
EBIT from Continuing Operations	570	1,368	1,941	2,695
EBIT from Discontinuing Operations	-	276	504	1,669
Operating earnings (EBIT)	570	1,644	2,445	4,364
Not included in the cash flow
Amortisation/depreciation and impairment	776	535	2,395	1,545
Net Credit Gains / (Losses)	47	-2	79	-9
Other adjustment for items not included in cash flow	-112	-249	-92	325
Non-Cash Adjustments	711	284	2,382	1,861
Payments from Associates and Joint Ventures	165	84	351	412
Operating Cash Flows Before Working Capital	1,446	2,012	5,178	6,637
Changes
Changes in working capital	-131	-279	100	-190
Operating Cash Flows Before Taxes	1,315	1,733	5,278	6,447
Income Taxes Paid	-38	-202	-860	-1,137
Net Cash Flows from Operating Activities	1,277	1,531	4,418	5,310

	Fourth quarter			Full year
	Oct–Dec	Oct–Dec
	2024	2023	2024	2023
Investing activities
Acquistion of Portfolio Investments	-273	-676	-1,479	-5,114
Amortisation of Portfolio Investments	888	1,426	4,442	5,385
Acquistion of Intangible Assets	-297	-116	-531	-229
Disposal of Intangible Assets	23	-10	23	2
Acquistion of Property, Plant and Equipment	-14	-66	-54	-124
Disposal of Property, Plant and Equipment	-8	21	6	1
Investment in Associated Companies / Subsidiaries	-153	-693	-1,570	-2,347
Disposal of Associated Companies / Subsidiaries	-	22	8,640	-134
Other cash flow from investing activities	-	-	-274	-
Cash flows from investing activities	166	-92	9,203	-2,560
Financing activities
Proceeds/(repayment) from Borrowings	-1,549	959	-10,491	3,349
Proceeds/(repayment) of other financial liabilities	-254	-295	-608	-291
Repayment of Leases	-56	98	-229	-101
Share repurchases	-	-	-63	-355
Finance Income Received	35	-23	122	68
Finance Expense Paid	-335	-390	-3,430	-2,994
Receipts from Settlement of Hedging Derivatives	85	670	767	1,168
Payments for Settlement of Hedging Derivatives	-98	-544	-288	-776
Net Payments on Settlement of Other Derivatives	-96	-298	-790	-321
Dividends Paid to Parent Company's Shareholders	-	-813	-	-1,627
Dividends Paid to Non-Controlling Interest	-	-	-285	-382
Cash flows from financing activities	-2,268	-636	-15,295	-2,262
Total cash flow changes in the period	-825	803	-1,674	488
Opening balance of Cash and Cash Equivalents1	3,208	3,433	3,769	3,474
Foreign Exchange Differences	120	-300	408	4
Cash and Cash Equivalents from Discontinued Operations	-	-167	-	-197
Closing balance of liquid assets	2,503	3,769	2,503	3,769

1) Opening balances of cash and cash equivalents have been adjusted to align with the closing balances in the 2023 audited financial statements.

Statement of Income – Parent company

	Full year	Full year
SEK M	2024	2023
Other Income	1,335	1,617
Income	1,335	1,617
Direct Costs	-324	-286
Gross Earnings	1,011	1,331
Other Operating Items	-	-
Operating Income	1,011	1,331
Indirect Costs	-2,149	-2,114
Net Operating Income/EBIT	-1,138	-783
Net Financial Income	2,944	841
Income/(loss) before taxes	1,806	58
Taxes	-161	24
Net Income/(loss) for the period	1,645	82

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

Statement of financial position – Parent company

	31 Dec	31 Dec
SEK M	2024	2023
ASSETS
Non-Current Assets
Intangible Assets	141	527
Tangible Assets	35	4
Financial Assets	83,093	82,912
Total Non-Current Assets	83,269	83,443
Current Assets
Receivables	2,679	1,452
Cash and Cash Equivalents	672	762
Total Current Assets	3,351	2,214
TOTAL ASSETS	86,620	85,657
SHAREHOLDERS' EQUITY AND LIABILITIES
Restricted Equity	426	812
Unrestricted Equity	6,986	4,958
Total Shareholders' Equity	7,412	5,770
Non-Current Liabilities	62,265	69,604
Current liabilities	16,943	10,283
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	86,620	85,657

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 2023 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 income of SEK 1,335 M (2023: SEK 1,617 M for the YTD and earnings before tax of SEK 1,806 M (2023: SEK 58 M) . The Parent Company held SEK 672 M (2023: SEK 7624 M) in cash and cash equivalents at the end of the quarter. The average number of employees was 71 (2023: 77).

Development in the period

Total assets as of 31 December 2024 of SEK 78,247 M is down by SEK 11,961 M, or 15%, compared to 31 December 2023 primarily driven by the sale of disconued operations.

Recapitalisation Transaction

Recapitalisation Transaction

On 18 October 2024, Intrum launched the solicitation of creditors' votes for a prepackaged Chapter 11 (the "Chapter 11") in order to reduce gross liabilities and extend repayment terms. Intrum also sought consents under the MTNs to facilitate the Chapter 11 and the Recapitalisation Transaction (the "Consent Solicitation").

Based on the Lock-Up Agreement the vast majority of creditors were supportive of the Recapitalisation Transaction (c.97% of Intrum's RCF lenders and c.73% of noteholders, each by value) and were bound to confirm their support by voting in favour of the Chapter 11 and, if applicable, the Consent Solicitation providing Intrum with certainty of outcome under section 1126(c) of the United States Bankruptcy Code. Following the solicitation period, Intrum filed a voluntary petition for reorganisation pursuant to Chapter 11 of the United States Bankruptcy Code in the Southern District of Texas which was approved on 31 December 2024.The Recapitalisation Transaction is expected to become effective in H1 2025, following the satisfaction of all conditions.

The Recapitalisation Transaction will significantly improve and strengthen Intrum's capital structure. Its implementation has been designed to minimise any impact on the Group's operations, suppliers and employees. Furthermore, Intrum has sufficient liquidity to support continued operations while executing on its business plan throughout the Chapter 11 process and to fund reorganisation processes. Intrum will continue to meet its financial obligations to all creditors and employees in the ordinary course, without interruption. The Recapitalisation Transaction includes, (i) the injection of new capital through the issuance of new senior secured 1.5 lien notes in a nominal amount of c.EUR 526 M ("New Money Notes"), (ii) the amendment and/or exchange of the existing unsecured notes issued by Intrum AB for new secured notes ("Exchange Notes") to be issued by a subsidiary of Intrum AB in accordance with the Lock-Up Agreement in a nominal amount equal to 90 per cent of the aggregate nominal amount of the unsecured notes subject to the exchange and newly issued ordinary shares in Intrum equal to 10 per cent of the total share capital on a fully diluted basis to be allocated pro-rata to the holders of the unsecured notes subject to the exchange, (iii) amendment and extension of Intrum's RCF, and (iv) a pro-rata tender offer for EUR 250 M (or lesser amount if the New Money Notes are not fully subscribed) of the Exchange Notes within 60 days following completion (at a price of 94.4c per EUR of the face value of all series of Exchange Notes).

90 per cent of the aggregate nominal amount of the unsecured notes subject to the exchange and newly issued ordinary shares in Intrum equal to 10 per cent of the total share capital on a fully diluted basis to be allocated pro-rata to the holders of the unsecured notes subject to the exchange, (iii) amendment and extension of Intrum's RCF, and (iv) a pro-rata tender offer for EUR 250 M (or lesser amount if the New Money Notes are not fully subscribed) of the Exchange Notes within 60 days following completion (at a price of 94.4c per EUR of the face value of all series of Exchange Notes).

Events after the balance sheet date

On the 8 January 2025 Intrum entered into a Swedish company reorganisation, which formed an important step in the implementation of the Intrum´s Recapitalisation Transaction.

Discontinued operations

On 28 June 2024, Intrum completed the sale to sell part of its portfolio investments back-book to a third-party investor for a total consideration of SEK 9.6 bn. The transaction resulted in a total loss of SEK 1.4 bn. The investments disposed of by Intrum were acquired by a leveraged investment vehicle. The acquired assets are funded 57% by leverage and 27.95% by the third-party investor. The thirdparty investor and Intrum hold a 65% and 35% stake in the leveraged investment vehicle, respectively. In conjunction with this transaction Intrum has agreed a minimum 5-year exclusive servicing agreement with the investment vehicle, provided certain KPIs are met. Intrum plans to use net cash proceeds from the backbook sale amounting to SEK 7.2 bn to reduce debt.

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

The financial results of discontinued operations are as follows:

			31 Dec 2024
			Including
	Continuing Discontinued Discontinued
SEK M	Operations	Operations	Operations
Income	18,033	861	18,894
Direct costs	-10,209	-53	-10,263
Net Credit Gains/(Losses)	-79	-	-79
Share of Associates and JVs	517	-263	254
Other Operating Items	-668	-	-668
Indirect Costs	-5,563	-41	-5,604
Net Operating Income/EBIT	2,031	504	2,532
Net Financial Items	-3,391	-186	-3,577
Loss on disposal	-	-1,587	-1,587
Income before Tax	-1,361	-1,269	-2,629
Taxes	-624	-92	-716
Net Income/(loss) for the period	-1,985	-1,361	-3,345

			31 Dec 2023
			Including
	Continuing Discontinued Discontinued
SEK M	Operations	Operations	Operations
Income	17,705	2,296	20,001
Direct costs	-9,409	-313	-9,722
Net Credit Gains/(Losses)	- 258	266	8
Share of Associates and JVs	613	-539	74
Indirect Costs	-5,875	-122	-5,997
Net Operating Income/EBIT	2,776	1,588	4,364
Net Financial Items	-2,944	-804	-3,748
Income before Tax	-168	784	616
Taxes	-419	-140	-559
Net Income/(loss) for the period	-587	644	57

The cashflows of discontinued operations are as follows:

	31 Dec	31 Dec
SEK M	2024	2023
Operating Cashflows	-1,387	456
Investing Cashflows	556	-275
Financing Cashflows	-2,131	-61
Net Cashflows	2,962	120

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

	31 Dec	31 Dec
SEK M	2024	2023
Earnings per Share before Dilution	-11.28	-5.32
Earnings per Share after Dilution	-11.28	-5.32

The Brazilian operations was disposed of during Q2 2023. All assets and liabilities associated with the jurisdictions sold during 2023 and 2024 are excluded from the consolidated Statement of Financial Position as of 31 December 2024.

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.

Goodwill

		31 Dec	31 Dec
Markets	Segment	2024	2023
Norway	North	3,497	3,845
Sweden	North	2,013	2,013
Denmark	North	807	783
Finland	North	2,691	2,541
Austria & Germany	Middle	2,092	2,008
Belgium & Netherlands	Middle	1,285	1,232
Switzerland	Middle	3,268	3,211
France	Middle	3,547	3,506
UK & Ireland	Middle	3,500	4,009
Portugal	South	980	910
Spain	South	5,003	4,388
Italy	South	1,901	1,831
Greece	South	5,011	5,083
Poland	Eastern	43	43
Other	Central	236	228
Total		35,871	35,632

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

The value-in-use estimates are based on a 4-year forecasting period. At the end of the 4th year, a terminal value is estimated to reflect the value relating to future period in perpetuity. The value-in-use estimate is a total of forecasting period and terminal value discounted at post-tax WACC. The value-in-use estimates are based on following key assumptions:

Key Assumptions	2024	2023
WACC (Post-tax)	7.7% to 11.6%	7.2% to 11.1%
Tax Rate		15.4% to 27.9% 15.4% to 27.9%
Growth Rate		0.0% to 25.6% -5.4% to 19.1%
Terminal Growth Rate	2.0%	2.0%

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

WACC sensitivity

					WACC sensitivity Headroom
					(SEK M)
			(100)	(50)		50	100
Markets	Segment WACC		BPS		BPS WACC	BPS	BPS
Norway	North	8.2%	738	365		53 (214) (443)
Sweden	North				7.7% 1,702 1,340 1,041 790		576
Denmark	North	7.7%	403	282	182	98	27
Finland	North		8.7% 1,630 1,275		974		714 488
Austria & Germany	Middle	8.2%	424	199		10 (151) (289)
Belgium & Netherlands Middle		8.4%	772	592	441	311	199
Switzerland	Middle				7.7% 3,047 2,431 1,924 1,498 1,135
France	Middle	9.1%	672	338		52 (197) (415)
UK & Ireland	Middle		9.7% 1,347 986		671	396	152
Portugal	South	9.9%	142	67		2 (55) (106)
Spain	South	10.3%	799	417		81 (218) (484)
Italy	South	11.0%	595	451	324	210	108
Greece	South				11.6% 3,593 3,132 2,719 2,346 2,007
Poland	Eastern	8.9%	788	722	666	617	575

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

TGR sensitivity

					TGR sensitivity Headroom (SEK M)
			(100)	(50)		50	100
Markets	Segment	TGR	BPS	BPS	TGR	BPS	BPS
Norway	North		2.0% (365) (171)		53		316 630
Sweden	North	2.0%	643		826 1,041 1,296 1,605
Denmark	North	2.0%	49	110	182	267	371
Finland	North	2.0%	570	758			974 1,224 1,519
Austria & Germany	Middle		2.0% (226) (117)		10	159	337
Belgium & Netherlands Middle		2.0%	237	332		441 568	719
Switzerland	Middle				2.0% 1,252 1,561 1,924 2,356 2,880
France	Middle		2.0% (333) (153)		52	287	562
UK & Ireland	Middle	2.0%	249	447	671		926 1,219
Portugal	South	2.0%	(86)	(44)	2	55	115
Spain	South		2.0% (375) (160)		81		352 660
Italy	South	2.0%	150	232	324	427	542
Greece	South				2.0% 2,171 2,431 2,719 3,037 3,393
Poland	Eastern	2.0%	591	626	666	712	767

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 2024 Annual and Sustainability report. A high level of uncertainty exists 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. Intrum is in the process of a Recapitalisation Transaction, in order to significantly improve and strengthen its capital structure. More information on this transaction can be found in the section "Recapitalisation Transaction" on page 18.

Fair value of financial instruments

Most of the Group's financial assets and liabilities (portfolio investments, accounts receivable, other receivables, cash and cash equivalents, liabilities to credit institutions, bonds, commercial paper, accounts payable and other liabilities) are carried at amortised cost in the consolidated financial statements. For most of these financial instruments, the carrying amount is deemed to be a good estimate of fair value at group level. For outstanding bonds with a total carrying value of SEK 37,706 M (2023: SEK 44,273 M) at the end of the quarter, fair value is, however, estimated at SEK 27,618 M (2023: SEK 39,566 M). The Group also holds forward exchange contracts and other financial assets of SEK 17 M (2023: SEK 323 M), as well as financial liabilities of SEK 61 M (2023: SEK 303 M) carried at fair value through the income statement.

Total Financing

Repayments	-22,710	-30,223
Currency translation effect	1,170	-116
Amortised costs and other As of 31 Dec	170 50,701	100 59,852

Net debt consist of EUR bonds, SEK MTNs, Bank term loan facilities and drawings under the revolving credit facility. Net debt amounted to

SEK 49,658 M (2023: SEK 57,343 M), the share of fixed rate debt amounts to 69% of net debt and is principally composed of EUR bonds with maturities between 2025 and 2028. Net debt in relation to the RTM cash EBITDA stands at 4.5x compared to 4.4x at the end of the fourth quarter 2023. At the end of the quarter SEK 12,635 M (2023: SEK 13,834 M) of Intrum's revolving credit facility was utilised. The cash balance at the end quarter was SEK 2,504 M (2023: SEK 3,769 M).

Net Financial Items Specification

	Fourth quarter		Full year
	Oct–Dec	Oct–Dec	Change			Change
SEK M	2024	2023	%	2024	2023	%
Interest Earnings	35	36	-3%	122	127	-4%
Interest Costs	-804	-894	-17%	-3,442	-3,417	-1%
Interest Cost on Leasing Liability	-17	-9	90%	-53	-36	47%
Exchange Rate Differences	22	32	-32%	-28	3	-1032%
Amortisation of Borrowing Costs	-85	-27	215%	-170	-100	70%
Commitment Fee	-9	-23	-62%	-44	-98	-55%
Other Financial Items	-54	62	-293%	-1,456	-227	570%
Total Net Financial Items	-912	-823	11%	-5,073	-3,748	35%
Less Net Financial Items from Discontinued Operations	-	4	-100%	1,772	804	120%
Total Net Financial Items	-912	-819	11%	-3,301	-2,944	12%
IAC in Net Financial Items	-	-289	-100%	196	-	0%
Adjusted Net Financial Items	-912	-1,108	-18%	-3,105	-2,944	5%

Other information

The share

Intrum AB's (publ) share is included in Nasdaq Stockholm's Large Cap list. During the period 1 October – 31 December 2024, 43,456,470,000 shares were traded for a total value of SEK 1,385 M.

The highest price paid during the period was SEK 48.80 (1 October 2024) and the lowest was SEK 25.40 (10 December 2024). On the last trading day of the period, 31 December 2024, the price was SEK27.4 (latest paid). During the period Intrum AB's (publ) share price decreased by 43%, while Nasdaq OMX Stockholm decreased by 6%.

Share price, SEK (1 January 2021 – 31 December 2024)

Shareholders

		Capital and
31 December 2024	No of shares	Votes, %
Nordic Capital through companies	34,509,696	28.35%
AMF Pension & Fonder	7,000,000	5.75%
Avanza Pension	5,514,730	4.53%
Magnus Lindquist	1,756,410	1.44%
Defa Endeavour AS	1,676,083	1.38%
Handelsbanken Fonder	1,496,148	1.23%
Lennart Laurén	1,201,650	0.99%
Intrum AB	1,119,055	0.92%
Kerstin Danielson	1,100,012	0.90%
Swedbank Försäkring	953,046	0.78%
SEB Investment Management	843,898	0.69%
Nordea Liv & Pension	740,352	0.61%
Vidarstiftelsen	737,160	0.61%
Andrés Rubio	710,246	0.58%
Fidelity International (FIL)	704,864	0.58%
Total top 15 largest shareholders	60,063,350	49.35%
Other shareholders	59,376,344	48.78%
Total number of shares including treasury shares 121,720,918		50.65%

Source: Modular Finance Holdings and Intrum

The proportion of Swedish ownership amounted to 82.8% (institutions 31.4 percentage points, mutual funds 10.8 percentage points and private individuals 43.6 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
	2024	2023	2024	2023	2023
1 EUR=SEK	11.46	11.10	11.42	11.49	11.48
1 CHF=SEK	12.17	11.98	11.70	11.81	11.82
1 NOK=SEK	0.97	0.99	0.98	1.01	1.01
1 HUF=SEK	0.028	0.029	0.029	0.030	0.03

For further information, please contact

Andrés Rubio, President and CEO, tel: +46 8 546 102 02

Johan Åkerblom, CFO, tel: +46 8 546 102 02

Anders Bengtsson, Investor Relations tel: +46 8 546 102 02

Johan Åkerblom 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 30 January 2025 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, 30 January 2025

Andrés Rubio

President and CEO

Definitions

Result concepts, key figures and alternative indicators

Acquired growth

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

Adjusted Earning per Share

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

Adjusted EBIT

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

Adjusted EBIT margin

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

Adjusted EBITDA

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

Adjusted Income

Income excluding portfolio revaluations and other items affecting comparability.

Amortisation percentage

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

Annual contract value, ACV

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

Capex Deployed

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

Cash EBITDA

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

Cash flow from joint ventures

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

Cash Income

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

EBIT

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

EBITDA

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

Estimated remaining collections, ERC

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

Exchange rates in change of income

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

External Income

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

Income

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

Internal Income

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

Investing Capex Deployed

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

Items affecting comparability

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

Net Debt before Other Obligations

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

Net Debt after Other Obligations

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

Non-Investing Capex Deployed

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

Operating margin

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

Operating margin, segment

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

Organic growth

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

Portfolio investments – collected amounts, amortisations and revaluations

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

Servicing segment: Capex Deployed

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

REO

Real estate owned.

Return on Portfolio Investments (ROI)

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

RTM

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

About Intrum

Intrum is the industry-leading credit management company in Europe with presence in 20 countries. We help companies prosper by offering solutions designed to improve cash flow as well as long-term profitability and by caring for their customers. Our focus is to create shared value for business and society, which both benefit from companies being paid on time and citizens getting out of debt. Intrum has over 9,800 dedicated professionals who serve around 80,000 companies across Europe. In 2024, the company generated income of SEK 18 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 20 countries. We also work with partners to cover approximately 160 countries across the world. Given our comprehensive footprint we can partner with clients across several markets. Our broad knowledge spans multiple industries and our scale enables us to invest in the newest technologies and innovative solutions.

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

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

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

Financial targets

External Servicing Adjusted Income Growth: ~10% CAGR Servicing Adjusted EBIT Margin: >25% Proprietaty Investing Book Value excl. Revaluation: SEK ~30bn Leverage: Net debt/Cash EBITDA 3.5x by end of 2026

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

Financial calendar 2025

31 Mar 2025	Annual report 2024
7 May 2025	Interim report for the first quarter
28 May 2025	Annual General Meeting
31 Jul 2025	Interim report for the second quarter
30 Oct 2025	Interim report for the third quarter

Intrum AB (publ)

Riddargatan 10 114 35 Stockholm, Sweden Tel +46 8 546 10 200 Fax +46 8 546 10 211 www.intrum.com info@intrum.com