INTERIM REPORT JANUARY-SEPTEMBER 2014


  · Consolidated net revenues for the third quarter of 2014 amounted to SEK
1,309 M (1,135).
  · Operating earnings (EBIT) amounted to SEK 415 M (330). Operating earnings
include revaluations of purchased debt portfolios amounting to SEK 15 M
(negative 2).
  · The operating margin was 32 percent (29), including revaluations of
purchased debt portfolios.
  · Net earnings for the quarter amounted to SEK 311 M (222) and earnings per
share were SEK 4.09 (2.79).
  · Disbursements for investments in Purchased debt amounted to SEK 271 (692).
  · Cash flow from operating activities amounted to SEK 788 M (647).
Comment by President and CEO Lars Wollung

Intrum Justitia’s performance was good in the third quarter of 2014. Our
business model, combining credit management services and financial services, has
continued to generate profitable growth and strong cash flows. Consolidated
income rose by 9 percent and operating earnings increased by 16 percent compared
with the year-earlier period, adjusted for currency effects and revaluations of
purchased debt portfolios. The consolidated operating margin was 32 percent for
the third quarter, compared with 29 percent in the year-earlier period. As with
previous quarters in 2014, this performance was mainly due to the Financial
Services business line, which showed increased volumes of purchased debt and
improved operating efficiency. Earnings per share have risen by 34 percent over
the past 12 months.

Within our regions, it is chiefly Central Europe and Western Europe that are
contributing to the improvement in consolidated earnings. Our Central European
region has shown strong earnings improvement in purchased debt in recent years,
helped by increased activities in the area of collection measures through the
legal systems. Western Europe has also been boosted by increased investments in
purchased debt and positive performance from acquisitions in credit management.
Our region Northern Europe has a continued strong profitability. The earnings
development in the region has however been relatively unchanged compared with
last year, owing mainly to lower investment volumes in purchased debt for a
period of time.

Our Financial Services line showed positive performance in terms of growth and
profitability, with purchased debt generating a 21 percent return in the third
quarter. Collection of purchased debt remained strong in the quarter, with
operating earnings rising by 31 percent compared with the year-earlier period.
Investment levels for purchased debt, however, were significantly lower in the
third quarter than the year-earlier period, which is partly due to the third
quarter of 2013 being unusually strong. We still believe we will see good growth
in Financial Services over a number of years. However, the level of investments
in purchased debt may vary considerably in individual years as a result of
changes in market conditions in terms of offering, prices levels and
competition.

Our Credit Management service line showed a continued stable trend in the third
quarter. We are showing a certain positive development in terms of revenues from
external customers and operating margins were up on the year-earlier period. In
line with the Group’s strategy of growing value creation in Credit Management
through bolt-on acquisitions, earlier in October we announced that we are
strengthening our market position in Denmark by acquiring a business with a
complementary customer base and a cost base that offers good opportunities for
significant synergies.

Presentation of the Interim Report

The interim report and presentation material are available at
www.intrum.com/Investor relations. President & CEO Lars Wollung and Chief
Financial Officer Erik Forsberg will comment on the report at a live webcast
today, starting at 9:00 a.m. CET. The presentation can be followed at
www.intrum.com and/or www.financialhearings.com. To listen in to the conference
live, please dial +44(0)20 766 020 81 (UK) or +46 (0)8 519 993 51 (SE).

For further information, please contact:

Lars Wollung, CEO & President Tel: +46 (0)8 546 102 02

Erik Forsberg, CFO Tel: +46 (0)8 546 102 02
Intrum Justitia is Europe’s leading Credit Management Services (CMS) group,
offering comprehensive services, including purchase of receivables, designed to
measurably improve clients’ cash flows and long-term profitability. Founded in
1923, Intrum Justitia has some 3,600 employees in 20 markets. Consolidated
revenues amounted to about SEK 4.6 billion in 2013. Intrum Justitia AB is listed
on NASDAQ OMX Stockholm since 2002. For further information, please visit
www.intrum.com

Attachments

10213715.pdf