Intrum Ab · OMXSTO:INTRUM
Intrum Ab — Intrum Justitia Group — FY2003 Earnings Presentation
25 slides from Intrum Ab's earnings presentation, Feb 19, 2004
Slide 1: Intrum Justitia Group Full-year report 2003
Intrum Justitia Group Full-year report 2003 Good organic growth, excluding England Presented by Jan Roxendal, CEO and Bertil Persson, CFO Stockholm, 19 February 2004
Slide 2: Agenda
Agenda • Business introduction • Financials Full-year 2003 • Initiatives 2
Slide 3: Leader in Credit Management Services
Leader in Credit Management Services • Business idea: To improve our clients’ cash flow thus creating strong cash flow for Intrum Justitia to the benefit of our shareholders • Only true pan-European player with leading positions in all important markets • Core activities: consumer and commercial rec
Slide 4: Positioned for Profitable Growth
Positioned for Profitable Growth Pan-European, with operations in 21 countries, market leader in 14 countries in CMS Revenues of SEK 2,865M (EUR 314 millions) 2,870 employees Listed on Stockholm Stock Exchange Intrum Justitia’s market position Market leader Top-five position 4
Slide 5: Our market offering – Credit Management Services
Our market offering – Credit Management Services Invoice Due Write-off date date date Time line Purchased Debt Credit Sales Debt Debt Market information Ledger collection surveillance offering & decision services • Consumer • Commercial • International 5
Slide 6: Revenues and EBITA per Service Line
Revenues and EBITA per Service Line Other services Sales ledger Consumer service collection & 7% Debt surveillance 4% Purchased 59% Debt 7% EBITA Other services Commercial & 23% Consumer International Purchased 4% collection & collection Debt 15% Debt surveillance 71% Commercial & Revenues Internati
Slide 7: Outsourcing and Indebtedness – key factors driving market growth
Outsourcing and Indebtedness – key factors driving market growth Illustration of growth drivers in the European CMS market No. of debt collection cases Outsourcing Increased • Deregulation indebtedness • Focus on core • Drive to lower cost (change of CFO/CEO) In-house production • Emergence of new i
Slide 8: Agenda
Agenda • Business introduction • Financials Full-year 2003 • Initiatives 8
Slide 9: Financial highlights 2003
Financial highlights 2003 • Revenues up 3% to SEK 2,864.6M (2,774.9) • Organic growth 3%, excl England: 9% • Adjusted EBITA SEK 428.1M (481.4) • Adjusted EBITA, excl England and related costs, amounted to SEK 433.4M, up 16% • Cash flow SEK 301.8M (333.1) • Earnings per share SEK –2.12 (2.61) 9
Slide 10: Main events in 2003
Main events in 2003 • Accounting inaccuracies in England • Restructuring in Germany and Holland/Belgium • French acquisitions successfully integrated • Joint Venture with Goldman Sachs • Strengthening of Group management • Improved financial control and internal audit • Main growth drivers: – In Pol
Slide 11: Income statement, 2003
Income statement, 2003 MSEK Full-year Full-year 2003 2002 Revenues 2,864.6 2,774.9 Cost of sales –1,765.7 –1,755.4 Gross earnings 1,098.9 1,019.5 Sales, marketing, general, admin expenses –671.2 –545.1 Participations in associated companies 0.4 7.0 Adjusted EBITA 428.1 481.4 Goodwill amortization –1
Slide 12: Income statement, 2003, excl England
Income statement, 2003, excl England MSEK Full-year Full-year 2003 2002 Revenues 2,545.6 2,285.2 Cost of sales –1,524.4 –1,429.7 Gross earnings 1,021.2 855.5 Sales, marketing, general, admin expenses –588.1 –488.5 Participations in associated companies 0.4 7.0 Adjusted EBITA 433.5 374.0 Goodwill amo
Slide 13: Income statement, 2003, England
Income statement, 2003, England MSEK Full-year Full-year 2003 2002 Revenues 319.0 489.7 Cost of sales –241.3 –325.7 Gross earnings 77.7 164.1 Sales, marketing, general, admin expenses –83.1 –56.6 Participations in associated companies 0 0 Adjusted EBITA –5.4 107.4 Goodwill amortization –19.0 –20.9 I
Slide 14: Items affecting comparability
Items affecting comparability Item SEK M Restructuring: Germany 39.2 Netherlands and Belgium 3.3 Related to England: As per previous information Accounting adjustment 80 Provision for alignment to Group policy 104 Costs for review 34 Related to full year report Write-down of part of goodwill 103 Gro
Slide 15: Cash flow extracts
Cash flow extracts SEK M Full-year Full-year 2003 2002 Cash flow from operating activities 136.4 379.0 Change in working capital –32.8 –45.9 Effect in working cap from adjustm. in Engl. 198.2 — Accounting errors from Q2 SEK 80M Accrual for unallocated cash SEK 104M General accrual SEK 15M Cash flow
Slide 16: Revenues (Group and excl England)
Revenues (Group and excl England) SEK M 3500 3% 3000 11% 2500 2000 2002 1500 2003 2,865 2,546 -1% 1000 8% 2,775 2,285 743 500 692 751 642 0 Jan-Dec Jan-Dec, Oct-Dec Oct-Dec, excl excl England England Organic growth in revenues 2003 was 2.6%, and 9.2% excluding England. 16 For Q4 0.5% and 8.9% respec
Slide 17: Adjusted EBITA (Group and excl England)
Adjusted EBITA (Group and excl England) SEK M 600 -11% 500 16% 400 2002 300 2003 428 433 -32% 200 -9% 481 374 100 118 97 143 130 0 Year-to-date YTD, excl Q4 Q4, excl England England 17
Slide 18: Revenues by service line, excl England
Revenues by service line, excl England 1600 22% 2002 1400 2003 1200 1000 SEK M 800 -1% 600 1,448 645 40% 400 201 13% 1,186 654 144 200 93 105 0 CC & DS C & IC PD SL Consumer Collection & Debt Surveillance is key revenue driver, organic growth was 6% for the full year 18 2003, excluding England: 16%.
Slide 19: Adjusted EBITA by service line, excl England
Adjusted EBITA by service line, excl England 450 2002 31% 400 2003 350 300 250 SEK M 200 150 30% -17% 79 386 83 100 64 294 94 50 0 CC & DS C & IC PD SL -50 -36 -51 -100 Excluding England and related costs 19
Slide 20: Outlook
Outlook • Several of the Group’s main markets enjoy good growth. The trend of increased outsourcing and indebtedness is expected to continue, in particular Consumer Collection. The overall assessment is that for the full year 2004, consolidated revenues, excluding England, will grow in line with the
Slide 21: Agenda
Agenda • Business introduction • Financials Q3 – 2003 • Initiatives 21
Slide 22: Examples of initiated Group projects
Examples of initiated Group projects Review of Group strategy and business plan Measures to improve financial control environment Expansion of Debt Surveillance concept Multinational offering M&A process model Employee survey Revitalizing our Fair pay philosophy Strengthen the Group
Slide 23: Management appointments
Management appointments Appointments CEO February 2003 Legal counsel April 2003 HR Director August 2003 Group IT Director August 2003 CIO February 2004 New Group functions Merger & Acquisitions March 2003 Business Development May 2003 Group Treasury May 2003 Public Affairs Augu
Slide 24: Management appointments
Management appointments New Regional Managers Sweden, Norway & Denmark Sep 2003 Netherlands and Belgium Oct 2003 United Kingdom & Ireland Feb 2004 France, Spain & Portugal Feb 2004 New Country Managers England & Wales Mar 2003 Germany May 2003 Latvia Jan 2004 Denmark Jan 2004 I
Slide 25: Intrum Justitia Group
Intrum Justitia Group Europe’s leading Credit Management Services company 25