Intrum Justitia AB:s Year-end Report for 2009

Fourth quarter 2009

• Consolidated revenues for the fourth quarter 2009 amounted to SEK 1,046.3 M (1,020.0), an increase of 2.6 percent. Organic growth was 1.6 percent (6.2).

• Operating earnings (EBIT) amounted to SEK 206.1 M (142.9). Revenues and earnings include net purchased debt revaluations of SEK –3.7 M (–4.0). Quarterly earnings last year were also charged with a goodwill impairment of SEK 60.7 M. Excluding these items, operating earnings (EBIT) were SEK 209.8 M (207.6), corresponding to an operating margin of 20.0 percent (20.3).

• Net earnings for the fourth quarter amounted to SEK 138.7 M (96.0) and earnings per share before dilution amounted to SEK 1.74 (1.21).

• Investments in Purchased Debt amounted to SEK 211.3 M (205.1).

Full-year 2009

• Consolidated revenues for the full-year 2009 amounted to SEK 4,127.8 M (3,677.7), an increase of 12.2 percent. Organic growth was 3.9 percent (9.3).

• Operating earnings (EBIT) amounted to SEK 668.2 M (697.3). Revenues and earnings include net purchased debt revaluations of SEK –35.7 M (2.2) as well as nonrecurring items of SEK –70.1 M (–51.8). Excluding these items, operating earnings (EBIT) were SEK 774.0 M (746.9), corresponding to an operating margin of 18.6 percent (20.3).

• Net earnings amounted to SEK 440.6 M (441.7) and earnings per share before dilution amounted to SEK 5.53 (5.58) for the full-year.

• Investments in purchased debt amounted to SEK 870.6 M (871.6).

• Cash flow from operating activities amounted to SEK 1,523.2 M (1,261.3). Cash and bank at year-end amounted to SEK 491.4 M (294.3).

• The Board of Directors proposes a dividend of SEK 3.75 per share (3.50).

Comment by President and CEO Lars Wollung:

At the end of 2009 we saw evidence that our restructuring in the UK & Ireland was complete. In the fourth quarter the region reported a profit of SEK 9 M, which represents an improvement of SEK 33 M compared with the same quarter of 2008.

Activity in the purchased debt market improved at the end of 2009. We invested 211 M (205) during the quarter, and incoming cash flow exceeded our expectations by 6 percent. Operating earnings (EBIT) for Purchased Debt were 3.6 percent higher for the full-year than in 2008. This includes portfolio write-offs of SEK 36 M, against a revaluation of SEK 2 M in 2008.

We have launched a joint venture with East Capital in Russia to invest in nonperforming consumer loans. The parties each intend to invest EUR 10 M.

Margin pressure continued to affect CMS operations in the fourth quarter. The operating margin (EBIT) was 12.2 percent (13.8) during the quarter and 12.8 percent (15.6) for the full-year, adjusted for restructuring costs.

Our industry has also been affected by the global financial crisis, which launched a recession. The number of collection cases that have been turned over to legal actions has risen, which immediately raised expenses but delayed revenue. The solvency of debtors deteriorated in 2009 at the same time that average administrative times increased. The situation has stabilized, but will persist in 2010.

The Switzerland, Germany & Austria region reported a year-over-year drop in earnings of SEK 33 M during the fourth quarter. About half this amount is due to one-off items. CMS revenue from a few extraordinary large debt portfolios is beginning to decline with age. On the other hand, costs continued to increase in the last year. The region’s new management team gradually came into place in late 2009 and has begun a comprehensive improvement program aimed at higher sales and cost efficiencies. This work is expected to produce results during the second half of 2010 and have its full impact in 2011.

Efforts to increase the Group’s productivity continue at the same time that we are further improving our services.

Our strong cash flow of SEK 1,523.3 M, a low debt/equity ratio of 78 percent and a new three-year loan agreement of EUR 310 M provide a stable financial foundation that facilitates a good growth rate.