Intrum : Year-end announcement 2019

Year-end announcement 2019

· Intrum concluded a strong 2019 but items affecting comparability impacted
reported results
  · Stable CMS margins and good cost control
  · Portfolio investments end 2019 strongly
  · Firm foundations in place for further growth going into 2020

Fourth quarter, October-December 2019:

•    Consolidated net revenues increased to SEK 4,663M (3,517).

•    Adjusted EBIT increased to SEK 1,821M (1,236).

•    Elevated non-recurring items in the quarter e.g.:

  · Non-cash intangible asset impairment in Spain of SEK 2.9 billion reflecting
changed market conditions, visible in our figures the past couple quarters.
  · Other non-recurring items totaling SEK 1.3 billion whereof efficiency
program constituting SEK 0.6 billion.

•    Net debt / cash EBITDA amounted to 4.3x (4.3x).

•    Portfolio investments amounted to SEK 3,780M (5,444). Return on portfolio
investments increased to 14 per cent (13).

•    Net profit decreased to SEK -2,482M (482), and earnings per share decreased
to SEK -18.84 (3.70).

•    Cash flow from operating activities increased to SEK 1,837M (1,813).

Full year 2019:

•    Consolidated net revenues for 2019 amounted to SEK 15,985M (13,442).

•    Adjusted operating profit (EBIT) increased to SEK 6,208M by 38 per cent
versus adjusted operating profit (EBIT) of SEK 4,500M in 2018.

•    Net profit amounted to SEK -285M (1,943) and earnings per share were SEK
 -2,76. Adjusted for items affecting comparability in EBIT and financial net,
the adjusted EPS amounted to SEK 27.8.

•    Cash flow from operating activities increased to SEK 6,392M (6,154).

•    The carrying value of portfolio investments, including properties and
participation in joint ventures, increased by 10 per cent since the end of the
previous year. The year's portfolio investments amounted to SEK 7,324M (11,854).
The return on portfolio investments was 15 per cent (14).

•    In Credit Management services, revenue growth amounted to 21 per cent and
the operating margin was 26 per cent excluding non-recurring items.

•    The Board of Directors proposes a dividend of SEK 11.0 per share (9.50).

Events after the reporting period

As communicated in November 2019, a new organisational setup was implemented as
of 1 January 2020. The aim is to achieve increased efficiency and thus
strengthen competitiveness. The former four geographical regions were removed
and a third new business line created, 'Strategic Markets, consisting of
Intrum's key southern European markets (Spain, Italy and Greece) in parallel
with the existing 'Credit Management Services' and 'Portfolio Investments'.
Comment by President and CEO Mikael Ericson

'I am pleased that the development of the business continued to progress well in
Q4 with adjusted EBIT up 47 per cent year-on-year, coupled with a high portfolio
investment pace at stable underwriting levels.

Due to headwinds experienced in Spain in recent years, we have adjusted our
balance sheet by impairing SEK 2.9 billion of intangible assets. This adjustment
reflects the earnings level observed in recent quarters compared to earlier
periods when Spain was characterised by different market conditions. In addition
to the adjustment of intangibles in Spain, our results are impacted by non
-recurring items that relate to our previously communicated efficiency programme
of SEK 0.6 billion, M&A transaction related costs, impairment of group IT assets
and other items relating to integration costs etc.

Our CMS business reported stable margins of 27 per cent (27 per cent) and the
portfolio investment business made investment totalling SEK 3.8 billion (5.4
billion), growing our portfolio book value to SEK 35 billion at stable
underwriting levels.

2019 provided a good foundation for further growth going into 2020. We note that
2020 is off to a good start and see a continued high activity across Europe on
the non-performing loan market. We retain our ambition to reach a Net
Debt/EBITDA of 2.5-3.5x and EPS of SEK 35 by year-end, acknowledging that this
requires flawless execution of our 2020 business plan.'

Dividend proposal
The Board of Directors of Intrum AB proposes that the Annual General Meeting
distribute a dividend to the shareholders of SEK 11 per share (9.50),
corresponding to a total of SEK 1,440M (1,250).
Presentation of the year-end report

Mikael Ericson, President & CEO, and Anders Engdahl, CFO, will present the
results and answer questions. The conference will be held in English.

Link to live webcast
https://tv.streamfabriken.com/2020-02-04-intrum-press-conference

To listen in to the conference live, please dial:

UK: [phone]
US: [phone]
SE: [phone]

Participant Pin code:
66539347#

The interim report and presentation are available at www.intrum.com/investors/
For further information, please contact:
Viktor Lindeberg, Head of Investor Relations & Group Business Control
[phone]
[phone]
[e-mail]
[e-mail]

This information is information that Intrum AB (publ) is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Market Act. The
information was submitted for publication, through the agency of the contact
person set out below, at 11:30 CET on February 4, 2020.

Attachments:
02047434.pdf