Intrum : Report Q323 Eng

Interim report

Third quarter 2023 highlights

• Seasonally slow Q3 in transitory 2023
• Income increased 9% vs. Q3'22 and 5% vs. YTD 22 driven by both Servicing and Investing segments
• Adjusted EBIT reduced by 13% vs. Q3'22 and 18% vs. YTD'22 driven by cost growth in excess of income
• EBIT for the YTD, which includes a provision of SEK 583 M in respect of costs to execute the cost saving program, increased by 108% vs. YTD'22 due to the impact of the JV write down in YTD'22
• Leverage ratio decreased 0.2x to 4.4x in the quarter driven by favourable FX movements and recent acquisition in Spain
• Delivered on several strategic priorities during the quarter: completed the divestment of Estonia and Latvia and the acqui- sition of Haya Real Estate in Spain and e-collect in Switzerland. Also, completed the acquisition of Ophelos Ltd in the UK on 17 October 2023
• The third quarter report has been updated to provide increased transparency and clarity. Full details of these GAAP and non- GAAP changes are provided on page 18 and 23 of this report

Third quarter, 2023		Third quarter			9 months		12 months	Full year
							Rolling
	July-Sep	July-Sep	Change	Jan-Sep	Jan-Sep	Change
SEK M, unless otherwise indicated	2023	2022	%	2023	2022	%	2023	2022
Unadjusted Accounting Metrics
Income	4,959	4,530	9	14,460	13,826	5	20,002	19,368
EBITDA	884	-831	206	3,753	2,792	34	3,153	2,192
EBIT	509	-1,576	132	2,719	1,307	108	1,566	154
Net Income/(Loss) attributable to parent company's	-411	-2,055	80	-375	-839	-55	-4,008	-4,473
shareholders
Earnings/(Loss) Per Share, SEK	-3.41	-17.05	80	-3.11	-6.95	-55	-33.23	-37.07
Adjusted Accounting Metrics
Adjusted Income	4,959	4,530	9	14,460	13,826	5	19,594	18,960
Adjusted EBITDA	1,727	1,924	-10	4,922	5,824	-15	7,215	8,117
Adjusted EBIT	1,353	1,564	-13	3,888	4,736	-18	5,816	6,664
Adjusted Net Income/(Loss) attributable to parent company's	222	760	-71	769	2,165	-64	438	1,834
shareholders
Adjusted Earnings/(Loss) Per Share, SEK	1.84	6.31	-71	6.38	17.93	-64	3.66	15.21
Adjusted Cash Metrics
Cash Income	6,336	5,736	10	18,420	17,594	5	25,106	24,280
Cash EBITDA	3,160	3,009	5	9,124	9,452	-3	12,910	13,238
Investing Segment: Capex Deployed	530	1,335	-60	4,977	6,260	-20	6,255	7,538
Cash EBITDA (proforma)							13,239
Net Debt before Other Obligations/RTM cash EBITDA	-	-	-	-	-		4.4x	4.1x
(proforma), x

Q3 in brief Comment by the President and CEOKey financial metrics Segment overview Financial overview Financial reports Other information Definitions About Intrum

Intrum  Interim report, third quarter 2023 2

Continued high commercial activity in a seasonally slower quarter

Operational excellence, client focus and capital light

In September at our Capital Markets Day, we presented our strategic priorities for the coming three years underpinned by three pillars. First, operational excellence: technology and automation will permeate our operating model to create an efficient and scalable operating platform while improving our collections capabil- ity. Second, client focus: emphasising profitable growth through client centricity. Third, capital light: extract cash from our back- book and pivot to a capital-light business model.

In our continuous effort to build a stronger and tech-driven fran- chise, we also announced the acquisition of Ophelos and eCol- lect, two companies set to accelerate our tech-transition. With these additions, we will advance our client value proposition while becoming more efficient by leveraging Ophelos - the only tech-powered autonomous debt resolution platform in Europe. Tech-driven decisions do not only allow us to be more profitable and relevant to our clients and customers but also drive other key benefits. For example, in Denmark, we transitioned from sending customers ~3 M physical letters annually to now sending more than 80 percent in digital form. Since August, when this program was initiated, we have not only increased our customer response rate by more than 700 percent, but we will also eliminate the emission of 61 tons of CO2 annually. This clearly shows that all stakeholders and our society as a whole benefit by driving technology within Intrum.

I also want to repeat and emphasise that our top near-term priority is to reduce our leverage and cost base. This quarter, we have lowered our proprietary investments, reduced operating costs and we are progressing on our plan to potentially exit selected Tactical markets and part of our back book. All cash flows from these tactical measures will repay debt and de-risk our platform.

In the third quarter, Income was SEK 4,959 M (4,530), translating to an increase of 9 per cent. Servicing Income amounted to SEK 3,441 M (3,103), while Investing Income stood at SEK 2,173 M (2,083). Cash EBITDA for the group was SEK 3,160 M (3,009), up 5 per cent. Adjusted EBIT decreased 13% to SEK 1,353 M (1,564) for the quarter and reduced 18% to SEK 3,888 M (4,736) for YTD due to increased costs in excess of increased income.

Direct and Indirect Costs totalled SEK 4,436 M for the quarter and SEK 11,767 M for the YTD. This includes SEK 791 M and SEK 1,110 M respectively of Items Affecting Comparability predominantly relating to the cost saving program and IT transformation (see page 10). Underlying costs, excluding these Items Affecting Comparability, have increased 15% to SEK 3,647 M (3,161) and 12% to SEK 10,657 M (9,503) for the quarter and the year, respec- tively, with currency movements contributing 10% for the quarter compared to Q3 '22 and 8% YTD. The cost program launched during the first quarter is principally focused on non-production elements which constitute approximately half of the above mentioned adjusted cost base.

Acceleration commercial success

On the commercial side, during the quarter we signed a transformational contract with Buildingcenter in Spain and a meaningful increased mandate with Virgin Money in the UK. We have also been awarded a large contract with Sykehusinnkjøp (hospitals) in Norway where the key reason for our selection was the quality of our service rather than the price of our offer. These efforts to drive the commercial development of the company are visible in our total annual contract value (ACV) signings. At the end of Sep- tember, the ACV signings in 2023 amounted to SEK 1.1 bn (690 M). During the third quarter alone, the ACV signings, excluding the

"I also want to repeat and emphasise that our top near-term priority is to reduce our leverage and cost base"

Q3 in brief Comment by the President and CEOKey financial metrics Segment overview Financial overview Financial reports Other information Definitions About Intrum

Intrum  Interim report, third quarter 2023 3

transformational contract with Buildingcenter, reached SEK 261 M with a win rate greater than 55 per cent.

Progress on cost program, cash extraction and leverage

By the end of the quarter, we have already achieved run rate cost savings of SEK ~350 M, mainly from redundancies which will gradually come into the results over the coming quarters. Given progress during the third quarter, we have taken a provision for costs to achieve of SEK ~ 580 M. The progress to date and our high ambition level make me comfortable with the previously communicated target of more than SEK 800 M with the majority to be achieved on a run-rate basis by end of 2023.

Our near term ambition to extract value from our Investing business delivered a cash EBITDA of SEK 2.8 bn, with SEK 531 M reinvested in portfolios in the quarter. The investments were made at an average unlevered IRR of 18 per cent (15). The leverage ratio Net debt before other obligations/RTM Cash EBITDA currently stands at 4.4x. The leverage reduction, compared to Q2 '23, is mainly driven by including the RTM results of Haya. In addi- tion, we had favourable FX movements in the quarter.

Reducing disposable income and extended payment terms Surging inflation and higher borrowing costs continue to be a problem for European household finances. As their real earnings stagnate or even decline, consumers will have to make difficult choices. In our own data, we see around half of consumers breaking even on their finances each month, while 24 per cent are overspending - and the average over-spender is exceeding their budget by EUR 232.

In September, the European Commission presented the "SME Relief Package", with the overarching ambition to empower SMEs across Europe. The European Commission highlights that late payments are causing severe liquidity issues for companies across Europe - in extreme cases directly leading to the compa- ny's bankruptcy. This is congruent with our '23 European Payment Report showed that 66 per cent of the respondents have been asked to accept longer payment terms. These numbers are worrisome, shedding light on the importance of not only address- ing, but acting on Europe's late payment problem now, but also supporting consumers as disposable income is being squeezed. We will closely monitor the developments, on the presented regulation and continue to maintain an active dialogue with regulators and support individuals to become debt free with Intrum.

The first small steps on a long journey

We have taken some important steps in improving and strengthening Intrum, and I am confident that we are on the right track. The journey we presented during the Capital Markets Day has only just begun. Step by step, we will execute on the realisation of Intrum's full potential over the coming years. In the meantime, we will concurrently focus on delivering on our near-term tactical measures.

Stockholm, October 2023

Andrés Rubio

President & CEO

"We have taken some important steps in improving and strengthening Intrum, and I am confident that we are on the right track"

Q3 in brief Comment by the President and CEO Key financial metricsSegment overview Financial overview Financial reports Other information Definitions About Intrum

Intrum  Interim report, third quarter 2023 4

Key financial metrics

Quarterly development

Adjusted EBIT decreased 13% to SEK 1,353 M (1,564) for the quarter and reduced 18% to SEK 3,888 M (4,736) for YTD due to increased costs in excess of increased income. Direct and Indirect Costs totalled SEK 4,436 M for the quarter and SEK 11,767 M for the YTD. This includes SEK 791 M and SEK 1,110 M respectively of Items Affecting Comparability predominantly relating to the cost saving program and IT transformation (see page 10). Underlying costs, excluding these Items Affecting Comparability, have increased 15% to SEK 3,647 M (3,161) and 12% to SEK 10,657

M (9,503) for the quarter and the year respectively with fx movements contributing 10% for the quarter (8% for the YTD). The cost saving program, which to date has identified savings > SEK 0.8 bn, will focus on the c.50% of adjusted costs that are not directly driving income and will be visible in our 2024 results.

In Servicing, new case inflows and assets under management continue to grow with exceptional new ACV signings of SEK 594 M (164) in the quarter, an all-time high for the segment. External Servicing Income for the quarter has benefited from increased inflows, rising to SEK 2,785 M (2,447) and reaching SEK 10,957

M on a rolling 12 month basis. However, Servicing Adjusted Margin for the quarter reduced to 12% (18) driven by cost growth in excess of income. Portfolio Investments performance for the quarter was in line with expectations at 100% of active forecast with an Adjusted ROI of 14% (14).

The leverage ratio reduced to 4.4x compared to the previous quarter driven by favourable FX movements and recent acqui- sitions. In Q3'23, Income and Adjusted Income for the quarter increased to SEK 4,959 M (4,530), EBIT increased to SEK 509 M (-1,576) and Adjusted EBIT decreased to SEK 1,353 M (1,564).

		Balance
Growth		sheet intensity
~10%	EBIT margin	SEK	Leverage
CAGR	>25%	~30 bn	3.5x
Total adjusted	Leverage ratio by
External servicing	servicing margin	Proprietary investing	end of 2025
Income growth		book value excl.
		revaluations
External Servicing Adjusted Income
Growth, RTM bn	Servicing Adjusted EBIT Margin, RTM	Investing BV excl. Revaluations, Quarter End	Leverage Ratio, RTM

10.6	10.5	10.4	10.6	11.0
			CAGR: 13%
CMD	Q 4	Q 1	Q2	Q 3
Sep'23	2022	2023	2023	2023

	21
18		19	18
		17
CMD	Q 4	Q 1	Q2	Q 3
Sep'23	2022	2023	2023	2023

41		38	41	39
	37
CMD	Q 4	Q 1	Q2	Q 3
Sep'23	2022	2023	2023	2023

4.6x			4.6x	4.4x
		4.3x
	4.1x
CMD	Q 4	Q 1	Q2	Q 3
Sep'23	2022	2023	2023	2023

Q3 in brief Comment by the President and CEO Key financial metrics Segment overviewFinancial overview Financial reports Other information Definitions About IntrumIntrum  Interim report, third quarter 2023 5

Segment overview

Key figures, 2023

		Third quarter, July-Sep 2023			9 months, Jan-Sep 2023
SEK M	Servicing	Investing	Central	Eliminations	Consolidated	Servicing	Investing	Central	Eliminations	Consolidated
External Income	2,785	2,173	1	-	4,959	8,028	6,431	2	-	14,460
Internal Income	656	-	66	-722	-	2,016	-	139	-2,155	-
Income1	3,441	2,173	67	-722	4,959	10,044	6,431	141	-2,155	14,460
Items Affecting Comparability in Income3	-	-	-	-	-	-	-	-	-	-
Adjusted Income	3,441	2,173	67	-722	4,959	10,044	6,431	141	-2,155	14,460
Direct Costs	-2,252	-833	-37	695	-2,427	-6,509	-2,461	-181	2,129	-7,022
Indirect Costs	-893	-59	-1,084	27	-2,009	-2,557	-290	-1,925	27	-4,745
Share of Associates and Joint Ventures	2	-27	-	-	-25	13	6	-	-	19
Net Credit Gains / (Losses)	-	12	-	-	12	-	7	-	-	7
EBIT2	298	1,266	-1,054	-	509	991	3,693	-1,965	-	2,719
Items Affecting Comparability in EBIT3	118	73	653	-	844	306	165	698	-	1,169
Adjusted EBIT	416	1,339	-401	-	1,353	1,297	3,858	-1,267	-	3,888
Cash Income	3,441	3,551	66	-722	6,336	10,044	10,390	141	-2,155	18,420
Cash EBITDA	742	2,775	-356	-	3,160	2,175	8,079	-1,130	-	9,124
Adjusted Income	3,441	2,173	67	-722	4,959	10,044	6,431	141	-2,155	14,460
- thereof Northern Europe	688	449	-	-103	1,035	2,074	1,294	-	-295	3,073
- thereof Middle Europe	952	648	-	-229	1,372	2,569	1,857	-	-739	3,687
- thereof Southern Europe	1,616	583	-	-180	2,019	4,829	1,840	-	-535	6,134
- thereof Tactical Markets	185	492	-	-145	532	572	1,439	-	-447	1,565
- thereof Central	-	-	67	-66	1	-	-	141	-139	2
Adjusted EBIT	416	1,339	-401	-	1,353	1,297	3,858	-1,267	-	3,888
- thereof Northern Europe	66	324	-	-	390	170	922	-	-	1,092
- thereof Middle Europe	55	341	-	-	396	121	969	-	-	1,091
- thereof Southern Europe	322	384	-	-	706	1,098	1,188	-	-	2,286
- thereof Tactical Markets	-28	292	-	-	264	-92	778	-	-	686
- thereof Central	-	-	-401	-	-401	-	-	-1,267	-	-1,267

1. Income of SEK 4,959 M for Q3'23 and SEK 14,460 M for the 9 month period ended 30 September 2023 includes SEK 80 M and SEK 131 M related to the discontinued operations for Q3'23 and the 9 month period ended 30 September 2023, respectively.
2. EBIT of SEK 509 M for Q3'23 and SEK 2,719 M for the 9 month period ended 30 September 2023 includes SEK 12 M and SEK 10 M related to the discontinued operations for Q3'23 and the 9 month period ended 30 September 2023, respectively.
3. Refer to page 10 for details on Items Affecting Comparability

Q3 in brief Comment by the President and CEO Key financial metrics Segment overviewFinancial overview Financial reports Other information Definitions About IntrumIntrum  Interim report, third quarter 2023 6

Key figures, 2022

		Third quarter, July-Sep 2022			9 months, Jan-Sep 2022
SEK M	Servicing	Investing	Central	Eliminations	Consolidated	Servicing	Investing	Central	Eliminations	Consolidated
External Income	2,447	2,083	-	-	4,530	7,495	6,331	-	-	13,826
Internal Income	656	-	29	-685	-	1,962	-	75	-2,037	-
Income1	3,103	2,083	29	-685	4,530	9,457	6,331	75	-2,037	13,826
Items Affecting Comparability in Income	-	-	-	-	-	-	-	-	-	-
Adjusted Income	3,103	2,083	29	-685	4,530	9,457	6,331	75	-2,037	13,826
Direct Costs	-2,319	-780	-12	685	-2,426	-6,280	-2,411	-48	2,037	-6,702
Indirect Costs	-737	-80	-434	-	-1,251	-2,134	-383	-1,147		-3,664
Share of Associates and Joint Ventures	15	-2,482	-	-	-2,467	14	-2,267*	-	-	-2,253
Net Credit Gains / (Losses)	-	40	-	-	40	-	101	-	-	101
EBIT2	62	-1,220	-418	-	-1,576	1,057	1,371	-1,121	-	1,307
Items Affecting Comparability in EBIT	496	2,564	80	-	3,140	702	2646	80		3,428
Adjusted EBIT	558	1,344	-338	-	1,564	1,759	4,017	-1,040	-	4,736
Cash Income	3,103	3,289	29	-685	5,736	9,456	10,100	75	-2,037	17,594
Cash EBITDA	853	2,446	-289		3,009	2,698	7,669	-915		9,452
Adjusted Income	3,103	2,083	29	-685	4,530	9,457	6,331	75	-2,037	13,826
- thereof Northern Europe	669	481	-	-112	1,038	1,975	1,401	-	-325	3,051
- thereof Middle Europe	701	641	-	-266	1,076	2,080	1,914	-	-761	3,233
- thereof Southern Europe	1,568	527	-	-140	1,955	4,874	1,669	-	-429	6,114
- thereof Tactical Markets	164	434	-	-137	461	527	1,347	-	-446	1,428
- thereof Central	-	-	29	-29	-	-	-	75	-75	-
Adjusted EBIT	558	1,344	-338	-	1,564	1,759	4,017	-1,040	-	4,736
- thereof Northern Europe	152	347	-	-	499	354	1,003	-	-	1,358
- thereof Middle Europe	41	265	-	-	306	180	990	-	-	1,170
- thereof Southern Europe	426	488	-	-	914	1,409	1,337	-	-	2,746
- thereof Tactical Markets	-61	244	-	-	183	-185	687	-	-	502
- thereof Central	-	-	-338	-	-338	-	-	-1,040	-	-1,040

1. Income of SEK 4,530 M for Q3'22 and SEK 13,826 M for the 9 month period ended 30 September 2022 includes SEK 103 M and SEK 180 M related to the discontinued operations for Q3'22 and the 9 month period ended 30 September 2022, respectively.
2. EBIT of SEK -1,576 M for Q3'22 and SEK 1,307 M for the 9 month period ended 30 September, 2022 includes SEK 44 M and SEK 72 M related to the discontinued operations for Q3'22 and the 9 month period ended 30 September 2022, respectively.

Q3 in brief Comment by the President and CEO Key financial metrics Segment overviewFinancial overview Financial reports Other information Definitions About Intrum

Intrum  Interim report, third quarter 2023 7

Servicing

Credit management with a focus on late payments and collections.

		Third quarter			9 months		Full year
	July-Sep	July-Sep	Change	Jan-Sep	Jan-Sep	Change
SEK M	2023	2022	%	2023	2022	%	2022
External Income	2,785	2,447	14	8,028	7,495	7	10,424
Internal Income	656	656	0	2,016	1,962	3	2,664
Income	3,441	3,103	11	10,044	9,457	6	13,088
Items Affecting Comparability in Income	-	-	-	-	-	-	-
Adjusted Income	3,441	3,103	11	10,044	9,457	6	13,088
Direct Costs	-2,252	-2,319	-3	-6,509	-6,280	4	-8,543
Indirect Costs	-893	-737	19	-2,557	-2,134	19	-2,900
Share of Associates and Joint Ventures	2	15	-87	13	14	-7	24
Other Operating Items	-	-		-	-		-
EBIT	298	62	381	991	1,057	-5	1,669
Items Affecting Comparability in EBIT	118	496	-76	306	702	-56	1,065
Adjusted EBIT	416	558	-25	1,297	1,759	-26	2,734
Cash Income	3,441	3,103	11	10,044	9,456	6	13,087
Cash EBITDA	742	853	-12	2,175	2,698	-25	4,037
KPIs
Change in Adjusted Income, %	14	14		7	9		7
- thereof organic growth	-6	9		-4	5		2
- thereof acquisitions	10	-		4	-		-
- thereof foreign exchange	10	5		7	4		5
Adjusted EBIT Margin	12	18	-6ppt	13	19	-6ppt	21
Capex Deployed	-43	-33	30	-117	-76	54	-146

Cash Income, 9 months

Northern Europe: 2,074

Middle Europe: 2,569

Southern Europe: 4,829

Tactical markets: 572

Cash EBITDA, 9 months

Northern Europe: 244

Middle Europe: 193

Southern Europe: 1,796

Tactical markets: -57

In the third quarter, the strong commercial performance contin- ued, with new signings of SEK 594 M (164) in ACV. In total, new signings are at SEK 1.1 bn for the first 9 months of the year, an increase of 60% compared to 2022. We continue seeing a positive development also in terms of higher margins in new signings compared to existing stock.

In total, the Adjusted Income for Servicing was at SEK 3,441 M (3,103) in the quarter, up by 11% compared to Q3 22. The External Income was at SEK 2,785 (2,447), up by 14%. Adjusted EBIT decreased by 23% to SEK 416 M (558), while Cash EBITDA decreased by 12% to SEK 742 M (853).

The decrease in Adjusted EBIT and Cash EBITDA is due to increased cost to collect and also higher Indirect Costs. The cost programme announced in Q1 23 has been launched and effects are starting to materialise, though not visible in financials yet.

Q3 in brief Comment by the President and CEO Key financial metrics Segment overviewFinancial overview Financial reports Other information Definitions About Intrum

Intrum  Interim report, third quarter 2023 8

Investing

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

		Third quarter			9 months		Full year
	July-Sep	July-Sep	Change	Jan-Sep	Jan-Sep	Change
SEK M	2023	2022	%	2023	2022	%	2022
Income	2,173	2,083	4	6,431	6,331	2	8,944
Items Affecting Comparability in Income	-	-	-	-	-		-408
Adjusted Income	2,173	2,083	4	6,431	6,331	2	8,536
- thereof REOs	34	35	-3	92	127	-28	192
-thereof Other Income	5	73	-93	20	197	-90	103
Direct Costs	-833	-780	7	-2,461	-2,411	2	-3,246
Indirect Costs	-59	-80	-27	-290	-383	-17	-528
Share of Associates and Joint Ventures	-27	-2,482	-99	6	-2,267	-100	-5,246
Other Operating Items	-	-	-	-	-		-
Net Credit Gains / (Losses)	12	40	-70	7	101	-93	117
EBIT	1,266	-1,220	204	3,693	1,371	167	42
Items Affecting Comparability in EBIT	73	2,564	-97	165	2,646	-94	5,333
Adjusted EBIT	1,339	1,344	-0	3,858	4,017	-5	5,374
- thereof REOs	-5	6	-183	5	15	-67	32
-thereof Other ncome	1	200	-100	3	486	-99	622
Cash Income	3,551	3,289	8	10,390	10,100	3	13,857
Cash EBITDA	2,775	2,446	13	8,079	7,669	5	10,528
KPIs
Internal Gross Collections	3,497	3,170	10	10,261	9,774	5	13,426
Amortisation %	39	38	1ppt	39	39	0ppt	40
Capex Deployed	530	1,335	-60	4,977	6,260	-20	7,538
ERC	81,522	82,832	-2	81,522	82,832	-2	77,634
Collection Index vs. Active Forecast	100	105	-5	101	110	-8	117
Book Value	38,785	39,693	-2	38,785	39,693	-2	37,109
Adjusted Return on Portfolio Investments %	14	14	0ppt	13	13	0ppt	14

Cash Income, 9 months

Northern Europe: 2,204

Middle Europe: 3,320

Southern Europe: 2,708

Tactical markets: 2,158

Cash EBITDA, 9 months

Northern Europe: 1,833

Middle Europe: 2,433

Southern Europe: 2,314

Tactical markets: 1,498

Despite the challenging macro environment, collection performance for the quarter came in at 100 % of active forecast with an Adjusted ROI of 14 % (14). The Q3 performance is seasonally weaker but still landed in line with forecast. We also completed the divestment of our platforms in Estonia and Latvia.

During the quarter, we invested SEK 530 M (1,335) in new portfolios with a net IRR of 18 % (15 %). The investment levels are aligned with our updated reduced investment appetite. The real-

ised investments are predominantly forward flow commitments across our markets. Cash Income came in at SEK 3,551 M (3,289), an increase compared to the same quarter last year. Cash EBITDA for the segment was SEK 2,775 M (2,446) and Adjusted EBIT was SEK 1,339 M (1,344), up 13 % and flat, respectively, compared to the same quarter last year.

Our Book Value decreased to SEK 38.8 bn from SEK 41.0 bn last quarter, aligned with the overall strategy.

Q3 in brief Comment by the President and CEO Key financial metrics Segment overview Financial overviewFinancial reports Other information Definitions About IntrumIntrum  Interim report, third quarter 2023 9

Financial overview

Adjusted P&L

	Third quarter	9 months		Rolling 12 months		Full year
	July-Sep	July-Sep	Jan-Sep	Jan-Sep	Oct 2022-
SEK M	2023	2022	2023	2022	Sep 2023	2022	2021	2020	2019
Adjusted Income	4,959	4,530	14,460	13,826	19,594	18,960	17,655	16,730	15,779
Adjusted Direct Costs	-2,341	-2,015	-6,862	-6,204	-8,975	-8,317	-7,910	-7,908	-7,674
- thereof personnel	-1287	-979	-3,694	-3,022	-4,758	-4,086	-3,968	-3,923	-3,615
- thereof non-personnel	-1054	-1,037	-3,168	-3,182	-4,217	-4,231	-3,942	-3,985	-4,059
Adjusted Indirect Costs	-1,306	-1,146	-3,795	-3,299	-5,020	-4,524	-3,312	-3,389	-3,076
- thereof personnel	-615	-526	-1,818	-1,495	-2,420	-2,097	-1,617	-1,511	-1,601
- thereof non-personnel	-691	-620	-1,977	-1,804	-2,600	-2,427	-1,695	-1,878	-1,475
Adjusted Share of Associates and Joint Ventures	40	195	85	413	217	545	581	306	1,179
Adjusted EBIT	1,353	1,564	3,888	4,736	5,816	6,664	7,014	5,739	6,208
Adjusted D&A	375	360	1,034	1,088	1,399	1,453	1,318	1,529	1,246
Adjusted EBITDA	1,727	1,924	4,922	5,824	7,215	8,117	8,332	7,268	7,454
Adjusted Financial Items	-1,004	-497	-2,655	-1,643	-3,421	-2,409	-2,174	-2,062	-1,921
Adjusted Tax	-68	-85	-292	-467	-954	-1,129	-910	-555	-424
Adjusted Consolidated Earnings	281	982	941	2,626	1,441	3,126	3,930	3,122	3,863
Adjusted Consolidated Earnings attributable to	222	760	769	2,165	438	1,835	3,487	2,689	2,797
parent company's shareholders
Average number of shares outstanding	121	121	121	121	121	121	121	124	131
Adjusted EPS, SEK	1.84	6.31	6.38	17.93	3.66	15.21	28.86	21.70	21.34
Adjusted EBITDA	1,727	1,924	4,922	5,824	7,215	8,117	8,332	7,268	7,454
Amortisation of Portfolio Investments	1,378	1,206	3,959	3,768	5,511	5,320	4,311	4,308	4,183
Income from Associates and Joint Ventures	-40	-195	-85	-413	-217	-545	-581	-306	-1,179
Cash from Associates and Joint Ventures	95	75	328	274	401	347	248	338	197
Cash EBITDA	3,160	3,009	9,124	9,453	12,910	13,238	12,310	11,608	10,655
Proforma adjustments					330
Cash EBITDA (proforma)					13,239

Net Debt Reconciliation

	Third quarter	9 months		Rolling 12 months		Full year
	July-Sep	July-Sep	Jan-Sep	Jan-Sep	Oct 2022-
SEK M	2023	2022	2023	2022	Sep 2023	2022	2021	2020	2019
Borrowings	61,007	56,662	61,007	56,662	61,007	56,519	52,501	48,703	50,625
Lease Liability	718	742	718	742	718	712	805	871	917
Deferred Liabilities	346	374	346	374	346	384	406	1,073	926
Gross Debt	62,071	57,778	62,071	57,778	62,071	57,615	53,713	50,647	52,468
Cash and Cash Equivalents	-3,465	-4,541	-3,465	-4,541	-3,465	-3,474	-4,553	-2,134	-1,906
Net Debt before Other Obligations	58,606	53,237	58,606	53,237	58,606	54,141	49,160	48,513	50,562
Net Defined Benefit Liability	144	367	144	367	144	141	329	381	387
Payable to Non-controlling Interest	123	401	123	401	123	397	430	-	-
Net Debt after Other Obligations	58,873	54,004	58,873	54,004	58,873	54,678	49,919	48,894	50,949
Net Debt before Other Obligations/RTM cash EBITDA					4.4	4.1	4.0	4.2	4.7
(proforma)

Q3 in brief Comment by the President and CEO Key financial metrics Segment overview Financial overviewFinancial reports Other information Definitions About IntrumIntrum  Interim report, third quarter 2023 10

Reconciliation

	Third quarter	9 months	Rolling 12 months	Full year
	July-Sep	July-Sep	Jan-Sep	Jan-Sep
SEK M	2023	2022	2023	2022	2023	2022
INCOME RECONCILIATION
Income	4,959	4,530	14,460	13,826	20,002	19,368
IACs in Income	-		-	-	-	-408
Adjusted Income	4,959	4,530	14,460	13,826	19,594	18,960
Portfolio Amortisation	1,378	1,206	3,959	3,768	5,511	5,320
Cash Income	6,338	5,736	18,420	17,594	25,106	24,280
EBITDA RECONCILIATION
EBIT	509	-1,576	2,719	1,307	1,566	154
Depreciation and Amortisation	367	745	1,010	1,485	1,563	2,038
EBITDA	876	-831	3,729	2,792	3,129	2,192
IAC - NCIs
Impairments / (Reversals)	71	2,662	80	2,666	3,182	5,768
Net Credit Gains/(Losses)	-11	-39	-7	-101	-23	-117
- thereof Portfolio Investment Gains	-461	-571	-1,059	-1,250	-1,604	-1,795
- thereof Portfolio Investment Losses	450	532	1,051	1,149	1,581	1,678
IAC - Restructuring
IT Transformational Costs	74	113	243	352	403	512
Merger & Acquisition	20	-	31	-	42	11
Group Restructuring	681	-	721	3	136	-583
- therof cost saving provision	583	-	583	-	583	-
IAC - NRIs
Hungarian Tax Effects	13	-	90	74	90	74
Other	3	19	35	38	257	260
Adjusted EBITDA	1,727	1,924	4,922	5,824	7,215	8,117
JV Cash Adjustments
IFRS Earnings	-40	-195	-85	-414	-216	-545
Cash Earnings	95	75	328	274	401	347
Portfolio Amortisation	1,378	1,206	3,959	3,768	5,511	5,320
Cash EBITDA	3,160	3,009	9,124	9,452	12,910	13,238
EPS RECONCILIATION
Earnings Per Share, SEK	-3.41	-17.05	-3.11	-6.95	-33.2	-37.07
IAC - NCIs
Impairments / (Reversals)	0.50	22.08	0.61	22.09	26.3	47.8
Portfolio Investments Costs of Sales
Other Operating (Gains) / Losses	4.75	1.27	8.88	2.80	10.6	4.47
Adjusted Earnings Per Share, SEK	1.84	6.31	6.38	17.93	3.66	15.21