Interim report January - March 2015

Transcription

1 Interim report January - March 2015 April 22 th 2015 Lars Wollung, CEO Erik Forsberg, CFO

2 Q1 Key highlights Strong financial performance EBIT excluding revaluations and fx-impact +12% Investment grade rating from Standard & Poor s Improving market position Acquired units in Czech Republic, Denmark and France performing well Development of new services E-com offering launched in Nordic and Switzerland Operational excellence program delivering according to plan Continued focus on improving our consumer-friendly collection practices Approximate calls every day, to find optimal solutions for creditor and debtors E.g. in Sweden only, we agree on some payment plans per year 2(25)

3 Q1 Key financials 12% EBIT growth (adjusted for currency and debt portfolio revaluations) 34% RTM EPS growth -9% Growth in operating cash flow 19% Return on purchased debt 469 MSEK investments in purchased debt 12% Growth in purchased debt book value 3(25)

4 Financial summary Q1 Q1 Change FY % 2014 Revenues, MSEK EBIT, MSEK * EBIT margin, % n/a 28 EPS growth, % n/a 31 Cash flow from operations, MSEK Investments in purchased debt, MSEK Return on purchased debt, % n/a 20 Purchased debt book value, MSEK Net debt to RTM EBITDA** * Excluding items affecting comparability is -35 MSEK for Q (25) ** EBITDA = operating result before interest, taxes, depreciation on tangible and intangible fixed assets as well as amortization and revaluation of purchased debt

5 Regional development Northern Europe 47 percent of total revenues Market leader Top five Other Q1 Highlights Revenue growth excluding revaluations and fx-impact up 6% year-on-year, mainly from the acquisition of Advis A/S and organic growth from CMS Improved EBIT and EBIT margin mainly due to CMS revenue growth and improved cost efficiency, as well as improving results from the region s IJ Finance units Launch of Avarda, a joint venture with TF Bank, offering payment services for e-merchants in the Nordics Q1 Q1 Change Fx Adj Excl. PD Revaluations, Quarter % % Revenues, SEKm % 6% EBIT, SEKm % 22% EBIT margin % 28% 24% 4 ppt 5(25)

6 Regional development Central Europe 30 percent of total revenues Market leader Top five Other Q1 Highlights Continued good revenue and EBIT growth, with improvements from both PD and CMS Solid development from last year s acquisition of the leading PD company in the Czech Republic Launch of new payment and financing service for e-merchants in Switzerland Significant positive fx-impact from appreciation of CHF/SEK. Q1 Q1 Change Fx Adj Excl. PD Revaluations, Quarter % % Revenues, SEKm % 9% EBIT, SEKm % 18% EBIT margin % 30% 28% 2 ppt 6(25)

7 Regional development Western Europe 23 percent of total revenues Market leader Top five Other Q1 Highlights Significant negative EBIT-impact from one-off costs associated with change of Regional Managing Director Improved earnings from PD but negative year-on-year trend for CMS Strong focus on driving improved growth going forward, through strengthening organizational resources and growing PD investment levels Q1 Q1 Change Fx Adj Excl. PD Revaluations, Quarter % % Revenues, SEKm % 4% EBIT, SEKm % -32% EBIT margin % 12% 19% -7 ppt 7(25)

8 Credit Management Services 64 percent of total revenues Market leader Top five Other Q1 Highlights Revenue growth excluding currency impact at +4%, mainly from the acquisition of Advis Marginally positive organic growth from external clients Strong YoY increase in Service Line Earnings, driven by positive effects from acquisitions, organic growth and improved cost efficiency. Note also that that the comparison period in 2014 was relatively weak. Q1 Q1 Change Fx Adj Reported numbers, Quarter % % Revenues, SEKm % 4% Service line earnings, SEKm % 25% Service line earnings margin % 24% 20% 4 ppt 8(25)

9 Financial Services 36 percent of total revenues Market leader Top five Other Q1 Highlights PD Book Value growth of 12% (6% fxadjusted) driving increased Service Line Earnings growth. Strong RoI at 19%, in line with the same period last year. PD investment levels reflecting market situation with generally good supply but significant price competition in several markets. Q1 Q1 Change Fx Adj Reported numbers, Quarter % % Revenues, SEKm % 11% Service line earnings, SEKm % 9% Service line earnings margin % 54% 54% 0 ppt Investments in PD, SEKm % ROI 19% 19% 0 ppt PD Book Value closing balance % 9(25)

10 PD Book value & growth SEK M PD carrying value % % -1% 3% % Growth YoY 26% 33% PD carrying value: SEK M Book Value growth: 12% 15% 12% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% Q1 Y o Y comparison 0% 10(25)

11 Purchased debt, investments & ROI PD ROI RTM excl revaluation SEK M KSEK % % 15% 10% 5% 0% FY Q1 Q2 Q3 Q4 1) paid investments 2) booked investments 11(25)

12 Purchased debt - revaluations Q1 Q1 PD revaluations, SEK m Northern Europe Central Europe 18 2 Western Europe 8 0 Total (25)

13 Balance sheet Highlights 31 Mar 31 Mar Dev SEK m % Intangible fixed assets whereof goodwill Tangible fixed assets Financial fixed assets whereof purchased debt Current assets Total assets Shareholders' equity Long-term liabilities Current liabilities Total shareholders equity and liabilities Net Debt (25)

14 Cash flow statement Q1 Q1 Dev FY SEK m % 2014 Operating earnings (EBIT) Depreciation Amortization and revaluation of purchased debt Income tax paid Changes in factoring receivables n/a -38 Other changes in working capital Financial net & other non-cash items Cash flow from operating activities (CFFO) Purchases of tangible and intangible fixed assets (CAPEX) Purchases of debt Acquisitions and other cash flow from investing activities n/a -158 Cash flow from investing activities (CFFI) Free cash flow (CFFO - CFFI) (25)

15 Funding base Syndicated bank loan facility (up to SEK 5bn) About SEK 1,9 bn utilized per Mar 2015 Loan facility allows a total financing of up to SEK 10 bn Corporate bonds (up to SEK 5 bn under MTN program) SEK 1 bn, 5Y note, issued in March 2012 (margin of 3,10%) SEK 1 bn, 5Y note, issued in June 2013 (margin of 2,22%) SEK 1 bn, 5Y note, issued in May 2014 (margin of 1,60%) Commercial Paper (up to SEK 1,5bn) SEK 0,7 bn outstanding per Mar 2015 Co-Investors for large portfolios of receivables Typically participate by 50-75% of total investment Debt Maturity Schedule (SEK million) Commercial Paper Bank Loan Bonds 15(25)

16 Financial targets Financial targets Q1 15 Q1 15 RTM FY EPS growth to exceed 10% per year 39% 34% 31% 2. Return on PD investments to exceed 15% per year 19% 20% 20% 3. Net Debt/EBITDA should be between 2.0 and (25)

17 Q&A 17(25)

18 Appendix 18(25)

19 This is Intrum Justitia Market leader Top five Other European market leader in an attractive growth market Proven hybrid business model serving the full credit management value chain Delivering consistent, strong financial returns Diversification of risk through broad base of clients, sources and countries Revenue EBIT # Average Nr of Employees (25)

20 Revenues and EBIT margin, rolling 12 months Revenues: SEK M SEK M EBIT margin: 28% Revenues EBIT EBIT-margin (RHS) Q % 20(25)

21 Gross Collections vs. Active Forecast - R12 10% 8% 6% 4% 2% 0% Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 21(25)

22 Indicative Financial illustration Invested amount: 100 SEK M Gross collection 2.05 x invested amount (SEK M) Y1 Y2 Y3 Y4 Y5 Y6-Y10 Y11-Y15 Y1-Y15 Cash-flow distribution 29% 18% 12% 9% 8% 20% 4% 100% Gross collection Amortisation * Amortisation rate (Amortisation/Gross Collection) 52% 44% 45% 46% 48% 50% 59% 49% Revenues (Gross Collection less Amortisation) Costs ** (mainly Collection Costs) Service Line Profit Service Line Margin 52% 49% 57% 59% 60% 57% 52% 54% Book Value, Average Balance RoI, defined as Service Line Profit/ (Average Book Value) 18% 17% 17% 17% 17% 77% 75% *) The PD amortization equals the change in carrying value in each year. The change in carrying value in turn is a function of the change of the estimated present value of future collections of the portfolio, estimated as the cash-flow from Gross Collections less Collection Costs, discounted at an estimated Effective Interest Rate (IRR) **) Collection Costs are mainly commission charged from Intrum's CMS service line at arms-length prices 22(25)

23 One-offs vs Forward Flow, as a % of PD Investments 23(25)

24 A broad indication going forward Carrying value 31 Mar 2015: SEK 6,338 M +12% y-o-y (SEK 5,656 M) Gross collection: Carrying value x 2.05 Cash flow distribution 31 Mar of Gross collection Y1 25% 23% Y2 16% 17% Y3 13% 13% Y4 10% 11% Y5 10% 9% Y6 7% 7% Y7 6% 6% Y8 5% 5% Y9 3% 4% 24(25)

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