Intrum (INTRUM) investor relations material

Executive summary

• First quarter of new strategy execution focused on operational efficiency, with cost reductions ahead of plan and servicing income slightly behind due to FX and seasonality; full management team in place.

• A fully guaranteed SEK 7.5 billion capital raise was announced to accelerate deleveraging, reduce financing costs, and support growth, targeting a servicing leverage ratio of 3.0x by 2028, two years ahead of previous plans.

• Consolidation of the Savoy Group joint venture increased book value by up to SEK 3.8 billion, added SEK 1.9 billion in debt, and resulted in a positive net impact on equity and EBIT.

• Operational efficiencies and AI-driven automation are being prioritized to improve cost structure and service delivery, with progress in document, voice, and email management.

Financial highlights

• Total income for Q1 2026 was SEK 3,754 million, down 12% year-over-year, mainly due to FX headwinds and lower servicing and investing income.

• Adjusted EBIT increased up to 45% year-over-year to SEK 1,502 million, driven by cost reductions and Savoy Group consolidation.

• Net income was negative for the quarter, at SEK -371 million, impacted by non-cash FX effects and write-downs related to Savoy consolidation.

• Personnel expenses declined up to 16% year-over-year, reflecting ongoing efficiency measures and FTE reductions.

• Net financial expense rose to SEK -1,621 million, including SEK 305 million FX headwinds.

Outlook and guidance

• Full-year guidance remains unchanged despite income headwinds; servicing income expected to be flat versus 2025 after FX adjustment.

• Capital raise will accelerate deleveraging, targeting a leverage ratio of 3.0x by 2028, two years ahead of previous plans.

• Portfolio investments are expected to increase faster than previously planned, subject to market conditions and price discipline.

• Further cost improvements expected in Q2, contingent on closing a portfolio sale.

• Potential for dividend payments post-2028 if deleveraging targets are met.