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

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18 Our financial services offering Our financial services offering financing services, payment guarantee & purchase of receivables Intrum Justitia’s financial services help our clients to improve their cash flow and reduce financial risk. Our Credit Management Services and Financial Services departments cooperate and support each other on a daily basis because credit management services can be refined through the considerable amount of information about customers generated in our portfolios of purchased receivables, and our databases can be enhanced. This information enables us to offer our clients effective debt collection methods. Similarly, our cooperation with companies within credit management provides important information on which to base good assessments of future investments in outstanding receivables. financing services financing services Payment guarantee Purchase of receivables Companies may sometimes, for a variety of reasons, need to quickly increase their liquidity, e.g. to make an investment or cover a capital requirement without tying up capital in trade receivables. Another reason might be that they want to reduce their credit risk. To assist our clients in these situations, Intrum Justitia offers various financing services, such as invoice factoring. No-recourse factoring involves the transfer of all rights by a company of its invoices before they are due for payment to quickly increase cash flow. Intrum Justitia currently only offers factoring services through partners. The option of including factoring in Intrum Justitia’s overall service offering is under consideration.
Payment guarantee Many of our customers operate businesses that involve extending large amounts of credit to end customers, and financial risk can therefore arise. One example could be a company that wishes to offer payment by invoice for its webshop. To ensure the payment of the transaction, we offer services that provide a payment guarantee based on a credit decision and credit limit monitoring. By using Intrum Justitia’s stored information, the company can check at the time of the sale if the customer is creditworthy and offer bespoke payment options. If the customers decides to pay on credit, Intrum Justitia can guarantee that the company will receive the full amount for the sale. We take over invoices that become overdue and handle them as normal collection cases. BETTER CASH fLOW AND LESS ADMINISTRATION Because our clients are guaranteed payment when unpaid invoices are overdue, they do not put their cash flow at risk or use their own resources for the administration of reminders and collection cases. Purchase of receivables More and more of our clients are taking the opportunity to sell portfolios of outstanding receivables. By purchasing receivables, Intrum Justitia frees up resources for clients and speeds up cash flow. Purchasing overdue receivables is a logical step in managing receivables that, despite collection and other measures, have not been paid and have therefore become a credit risk for the client. Examples could be trade receivables or unsecured loans between companies and private individuals, or between companies. The clients customer is still liable for payment, but the cost of collecting payment is considered so unpredictable and the creditor would have to write off all or part of the debt. The receivable still has financial value, however, and can be sold to a third party who continues to attempt to collect payment. IMPROVED LIQUIDITY The benefit for our clients is improved liquidity because they get paid for a portion of the receivable immediately and thereby avoid the risk of receiving no payment at all. The < Our financial services offering benefit for us is that we can continue with more long-term collection measures on our own behalf and for the client’s customer it becomes easier to become free of debt since we can help to gradually lower the debt in various ways, for example through payment plans. Intrum Justitia purchases portfolios after making an assessment of when and how much of the debt in the various cases will be paid. The price we pay for the portfolio is based on this forecast. Depending on age and quality, the amount can be significantly lower than the amount of the receivable. Typically the price may be around five to fifty percent of the receivable’s nominal value. After purchasing a portfolio, individual collection scoring that the various cases are handled through an action network which optimizes recovery. This action network determines who will receive a letter or phone call, a payment plan structure, and which cases will be left alone for the time being. By monitoring the period of limitation, keeping in frequent contact with the debtor, and finding the best solutions for all parties, even old debts can be paid. EXTENSIVE SERVICE PACKAGE INCLUDING PAYMENT GUARANTEE In Switzerland Intrum Justitia and Debtors Service Ltd (a subsidiary of Swiss Post) offer clients a complete payment guarantee solution. This service, called factoring Plus, includes managing sales ledgers, pre-financing and payment guarantees. The sales ledger management service also includes creditworthiness checks, accounting and reminders. Intrum Justitia is responsible for delivering creditworthiness checks and payment guarantees. factoring Plus is well suited for e-commerce companies and businesses that offer invoicing services and that quickly need access to liquid funds. 19
Page 1 and 2: INTRUM JUSTITIA ANNUAL REPORT
Page 3 and 4: Net earnings amounted to SEK 452 M
Page 5 and 6: We are working to promote healthy p
Page 7 and 8: ity will increase in these countrie
Page 9 and 10: In addition to being present in 22
Page 11 and 12: We are the market-leading credit ma
Page 13 and 14: Our services Respectful credit mana
Page 15 and 16: insight to feed innovation We are a
Page 17: Payment services Information is imp
Page 21 and 22: Committing to challenge We are ofte
Page 23 and 24: Credit institutions, private and pu
Page 25 and 26: Our goal is to be the employer of c
Page 27 and 28: Benefits of credit management Sound
Page 29 and 30: Regions Intrum Justitia has operati
Page 31 and 32: No. of shares traded Intrum Justiti
Page 33 and 34: financial overview Income statement
Page 35 and 36: There are several attractive commer
Page 37 and 38: NET fINANCIAL ITEMS The net financi
Page 39 and 40: GOODWILL The Group’s goodwill amo
Page 41 and 42: PROPOSED APPROPRIATION Of PROfIT Th
Page 43 and 44: Consolidated balance sheet SEK M NO
Page 45 and 46: Consolidated cash flow statement SE
Page 47 and 48: Parent Company income statement SEK
Page 49 and 50: Parent Company balance sheet SEK M
Page 51 and 52: Condensed statement of changes in s
Page 53 and 54: NOTE 1 SIGNIfICANT ACCOUNTING AND V
Page 55 and 56: Legal outlays The Group incurs outl
Page 57 and 58: iod of employment of the employees
Page 59 and 60: GROUP Tangible and intangible fixed
Page 61 and 62: GROUP 2010 2009 Reconciliation SEK
Page 63 and 64: NOTE 11 TANGIBLE fIXED ASSETS GROUP
Page 65 and 66: NOTE 13 JOINT VENTURES Intrum Justi
Page 67 and 68: NOTE 21 LIQUID ASSETS GROUP PARENT
Page 69 and 70:
ity amounted to SEK 168.7 M (849.7)
Page 71 and 72:
SEK Base salary/fee Variable comp-
Page 73 and 74:
2010 PARENT COMPANY SEK M At fair v
Page 75 and 76:
Accounts receivable The Group’s a
Page 77 and 78:
Audit Report We have audited the an
Page 79 and 80:
CHARLOTTE STRÖMBERG Age 51 Directo
Page 81 and 82:
PER CHRISTOFFERSON Age 42, Director
Page 83 and 84:
ATTENDANCE AT BOARD MEETINGS IN 201
Page 85 and 86:
The Board of Directors’ report on
Page 87 and 88:
able on the intranet and ongoing em
Page 89 and 90:
Information for shareholderst Annua
Page 91 and 92:
Intrum Justitia’s annual report 2
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ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...

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