ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...

12 Business concept, mission, vision, values, strategies and goals
Making a difference
We don’t look for problems, we find solutions.
We help our clients by providing
credit management services that make
them more competitive. Informed credit
decisions, faster payment and smooth debt
collection processes improve margins and
cash flow. Intrum Justitia makes a difference
– not just for our clients, employees
and shareholders, but for society in general.
Profitable companies create jobs and help
move society in a positive direction.
Committing to challenge
We are often participants in sensitive situations.
Sometimes people are stressed
because their finances are at stake or they
are handling large sums that are crucial for
a company’s future. We also affect the macroeconomy
because our business is a catalyst
for a sound economy, not just for individual
businesses but for all of society. We
welcome challenges. Challenges are what
we live for.
STRATEGIES
Market leader in every local market
In the credit management sector understanding
the market and its inhabitants is
crucial in order to offer effective credit management
solutions. Size is therefore one
of the keys to our success, because we have
assembled an extensive client register with
access to business and credit information for
many more individuals and businesses than
smaller credit management companies have.
With the help of a solid understanding of
payment behaviors in every local market,
we can help our clients to better understand
their customers. In order to reach a marketleading
position in all local markets, Intrum
Justitia is constantly evaluating acquisition
opportunities.
Comprehensive credit management
services that support our clients’
relationships with their customers
A complete offering of credit management
services supports our clients in their relationships
with their own customers. Clients
can benefit from our knowledge of payment
patterns and credit use to strengthen relationships
with customers and increase the
potential for more sales.
Intrum Justitia operates under the same
brand in all local markets. Through our
local presence we can offer clients and debtors
services that are well-suited to the local
market’s maturity, regulations and practices.
At the same time we offer a European
brand with a strong international network.
We have well-developed systems and processes
for effective credit management
across national borders in Europe. And
our global network enables us to offer our
clients credit management services in 170
countries outside Europe.
Greater benefits for clients
through improved processes and methods
We are constantly working on enhancing
the quality of the services we deliver to our
clients. We streamline credit management
processes and aim to use common IT systems
to improve productivity. Within the
Group we have a number of forums to enable
employees to benefit from competences
in the group. These forums are working on
improving work methods and services for
our clients. Intrum Justitia has also developed
analysis methods to optimize debt collection
management.
Healthy payment behavior in society
Intrum Justitia has an important role to play
in society because we help companies and
consumers to see the link between a healthy
attitude to payments and a well-functioning
economy.
Few people know that around 25 percent
of all bankruptcies in Europe are caused
by companies being paid late or not
at all. This results in less business activity,
fewer jobs and higher prices for consumers.
Our employees are crucial in their role
of looking after and delivering high-quality
services to businesses and consumers.
Personal development, the knowledge that
we have an important job to do, and pride
in our ability to help promote a better cre-
dit and payment environment in society
are therefore vital. Through the services
Intrum Justitia offers, we are ensuring that
there are fewer bankruptcies, greater economic
growth and more job opportunities.
GOALS
Business goal
Intrum Justitia’s goal is to promote business
and help create sound economies by making
business more easy, secure and fair. We are a
leading player in Europe in credit management
and financial services, and our goal is
to be one of the three largest players in every
local market.
Financial goals
Intrum Justitia’s long-term financial goal is
to achieve organic sales growth of 10 percent
per year and to have pre-tax earnings
growth that is at least in line with our organic
growth.
In 2010 our organic growth amounted
to -0.8 percent and pre-tax earnings grew
by 8.7 percent. Since 2005 our average annual
organic growth has been 5.3 percent,
while pre-tax earnings have grown by 8.7
percent.
We also have a goal of achieving an annual
return on purchased debt of at least 15
percent and in the long-term to achieve a
net debt/equity ratio of less than 150 percent.
In 2010 the return on purchased debt
was 16.3 percent and the net debt/equity
ratio was 85.1 percent.
Dividend goal
Intrum Justitia’s Board of Directors intends
to annually propose a dividend or its equivalent
to shareholders that over time averages at
least half of the net earnings for the year after
tax. Decisions relating to dividend proposals
take into account future revenues, financial
position, capital requirements and the status
in general.
For 2010 the Board has proposed a dividend
totaling SEK 327 million (SEK 4.10
per share), which is equivalent to approximately
72 percent of the net earnings for the year.