The Lindorff Group - A Leading creditor and Provider For 2010

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1 > Year of investment: t 20 > Share of capital/votes: 57%/50% > Value of holding: SEK m. 3 Scandinavia Gambro & CaridianBCT Mölnlycke Health Care > Serving on the Board: Börje Q Ekholm and Petra Hedengran Swedish Orphan Biovitrum > Other owner: Altor Lindorff A leading credit management company in the Nordic region with a growing European presence. Lindorff has offices in Denmark, Estonia, Finland, Germany, Latvia, Lithuania, the Netherlands, Norway, Russia, Spain and Sweden. Public The Lindorff Group Investor Capital Markets Day Endre Rangnes, CEO Lindorff Group May 18, 2010 This presentation is solely for the use of Lindorff Group and companies associated with Lindorff Group. No part of it may be circulated, quoted or reproduced for distribution without prior written approval from Lindorff Group. This material was used during an oral presentation; it is not a complete record of the discussion. Professional Customer-oriented Performance-oriented Caring

2 Agenda The Lindorff story Financial results Key Initiatives for The Lindorff Group Lindorff; A leading European provider of debtrelated administrative services Net revenues; 283 (IFRS) million in employees in Norway, Finland, Sweden, Denmark, Estonia, Latvia, Lithuania, Russia, The Netherlands, Germany and Spain Owners; Altor Equity Fund (50%), Investor AB (50%) Main Industries: Financial institutions, Insurance, Telecom & Utilities, Retail and SME. 4

3 Lindorff; A Nordic market leader with growing international footprint... Norway #1 Debt collection and support services Market share 35% Sweden #1-2 Debt collection and support services Market share 18% Denmark #2 Debt collection and support services Market share 10% Netherlands #2 Debt collection and support services Market share 15% Spain S i Debt collection services New market entry No 1 or 2 market position New market entries, in build up Finland #1 Debt collection services Market share 41% Russia Debt collection services New market entry Baltic #1 Debt collection services Market share 36% Germany Debt collection services New market entry Market share 1% Source: Lindorff 5 Note: Market share is defined by revenues from 3 rd party collection and purchased debt From a Norwegian to a European company footprint European f Germany Spain Russia Investor AB The Entry into Continental Europe Netherlands Acquisition of Transfair Launched second greenfield operation for Lindorff Added Aktiv Kapital operation First greenfield start up for Lindorff Group Investor AB takes 50% share in Lindorff Group Acquisition of Dausend Group and Aktiv Inkasso Established position in Europe s largest NPL market 2005 Nordic leade er Building the Lindorff - Norway 2005 Sweden Match Finland Acquisition of Contant Broadened the product and service chain through h enrichment of data Large portfolio acquisitions Outsourcing of entire bank internal units Lindorff acquired by Altor Equity Partners in Norway

4 ...a full range of products and services... Credit Invoicing services Debt collection Pre-legal / Legal acquisition Surveillance & recovery Portfolio Cre edit Credit information Scoring and credit CRM solutions Data quality Solutions ces Inv voicing Servi Invoicing Services A/R management Loan administration Accounting Consumer services Debt Collection / Le egal Reminder services Customer recovery Pre-legal collection: Phone Letter Street collection Legal collection: Bailiff Salary deductions Surveillanc ce & Recov very Surveillance and recovery Debt reconstructuring Debt recovery tion tfolio acquisit Port Acquisition of whole portfolios Financing/factoring 7 Purchased debt from Financial institutions is important for revenue and profit growth European receivables management revenue and profit pool Revenue and profit pool (as % of total EUR millions) ~51% Financial services ~26% ~14% ~68% Revenue EBITA Revenue EBITA Revenue EBITA Trade ~15% ~9% ~8% ~10% Revenue EBITA Revenue EBITA 3 rd party collection Portfolio acquisition 8

5 Key European players Financial services Trade Cabot 1 st Credit Lindorff has a unique competitive position The only large collection company with a strong position in bank/finance Substantial share of Nordic bank s outsourced debt collection Strong track record within telecom, utilities, retail and public sector Extraordinary reputation and strong track record of handling debtors in a highly professional manner 3 rd party collection Portfolio acquisition Strategic Intent 9 Source: Company reports; Lindorff; McKinsey analysis Overview of selected public collection companies - 5 companies considered comparable to Lindorff Topline (1) CAGR Encore capital Intrum Justitia Portfolio Rec. Nordic USA Size = Revenues (20 revenues) Lindorff Group Asset Acceptance Aktiv Kapital 20 EBITdA margin (2) 10 (1) Growth in gross collection (2) EBITdA margin = EBITDA excluding portfolio depreciation and write-offs / Gross collections

6 Good underlying growth in the number of debt collection cases - example Norway and Sweden Signficant increase in the number of cases to collection in Norway......and the Swedish bailiff system has seen similar il growth 000 cases Norway cases Sweden 2 I. Credit overhang (1) Number of cases to legal collection, The Financial supervisory board of Norway (2)Number of cases received by the Swedish Bailiff System (source) II. Increased outsourcing III. Increased market effectiveness 11 Our strategy Competitive Advantage Market Participation Objectives & Plan of Actions Extensive Product Range Operational Capabilities Cross-Border Innovation BPO Experience Reputation & Brand Equity Complementary Assets Integrated Mgmt Platform International ti Customer Base Access to Capital Geography Full European coverage Drive market consolidation Customers Bank, Finance, Insurance Telecom/Utilities Retail/Public Sector SME Products Comprehensive ORM value chain Leverage cross-product synergies Customer-driven innovation BPO Pricing Premium pricing for superior value Export the Lindorff business model to Europe Grow in established markets Continuous operational improvement

7 Agenda The Lindorff story Financial results Key Initiatives for Lindorff Group Results 20 and Q Financial results -3% +7% EBITDA margin % 21% -18% Net sales (1) EBITDA Q1-20 Q EBITDA margin 17% 27% +67% Key highlight - 20 Key highlight Q Revenues in 20 in line with the 20 figures despite tough market conditions Margins still healthy however - slightly lower than for 20 Significant increase in Capital results Higher solution rates and strong case inflow in third party collection 14 (1) Revenues minus portfolio depreciation

8 Significant growth in the number of new collection cases and a solid build-up of collection fees in stock # cases % Increase in case volume from ILLUSTRATIVE EXAMPLE NORWAY BNOK 1,30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15 % Increase in the stock of collection fees in the last 26 months 1,25 1,20 +15% 1,15 0,00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 10 Feb 10 Lindorff Group Results 20 Scandinavia 52%* ECE 22%* ution evenue distribu Re 50,3% 49,4% 49,7% 50,6% Continental Europe 20%* Revenues Capital Revenues 3PC * As percentage of total Group revenues 16

9 Agenda The Lindorff story Financial results Key Initiatives for Key initiatives for 2010 Growth Initiatives for organic and M&A growth Margin improvements Initiatives targeting operational efficiency and effectiveness Platform improvements Strengthening of systems and organization to deliver on financial and operational targets

10 Summary Huge opportunities to build a profitable business we are well-positioned Huge amounts of NPLs in 20 Increased pressure for FI to sell portfolios Increased collection volumes Increased readiness to outsource Ability to deliver on the entire value chain Successfully built portfolio acquisition business Exceptional track record in Nordic FI segment Secured funding and strong owners 19