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

NOTE 21
LIQUID ASSETS
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Cash and bank balances 428.1 434.9 88.3 151.7
Restricted bank accounts 28.6 48.4 0.0 0.0
Short-term investments 50.4 8.1 50.0 8.1
Total 507.1 491.4 138.3 159.8
Short-term investments have an insignificant risk of fluctuating in value,
can easily be converted to cash and mature in not more than three months
from acquisition. Short-term investments at each year consisted of overnight
investments with banks which were available the first business day
after the turn of the year.
NOTE 22
SHAREHOLDERS’ EQUITY
Share capital
According to the Articles of Association of Intrum Justitia AB (publ), the
company’s share capital will amount to not less than SEK 1,500,000 and
not more than SEK 6,000,000. All shares are fully paid in, carry equal
voting rights and share equally in the company’s assets and earnings. No
shares are reserved for transfer.
Changes in
share capital
No. of
shares
2010 2009
Share
capital (SEK)
No. of
shares
Share
capital (SEK)
Opening balance
New share issues in
79,994,651 1,599,893.02 79,592,171 1,591,843.42
connection with exercise
of employee stock
options
– – 402,480 8,049.60
Closing balance 79,994,651 1,599,893.02 79,994,651 1,599,893.02
Treasury shares –250,000 –5,000.00 –250,000 –5,000.00
Net 79,744,651 1,594,893.02 79,744,651 1,594,893.02
Share repurchase
In 2008, 250,000 shares of the total of 79,994,651shares outstanding were
repurchased for SEK 25.7 M to guarantee the delivery of shares and payment
of social security costs in connection with the Group’s Performance-
Based Share Program. The amount is recognized as a reduction in retained
earnings.
Other shareholders’ equity in the Group
Other paid-in capital
Refers to equity other than share capital contributed by the owners or arising
owing to the Group’s shared-based payment programs. Also included
are share premiums paid in connection with new issues.
Reserves
Refer exclusively to the translation reserve, which contains all exchange rate
differences arising as of January 1, 2004 from the translation of financial
reports from foreign operations as well as long-term intra-Group receivables
and liabilities that represent an increase or decrease in the Group’s net
investment in the foreign operations. The amount also includes exchange
rate differences arising since January 1, 2009 on the Parent Company’s
external loans in foreign currency, which are intended to hedge the Group’s
translation exposure attributable to net assets in foreign subsidiaries.
Retained earnings including net earnings for the year
Refer to earnings in the Parent Company and subsidiaries, joint ventures
and associated companies. Provisions to the statutory reserve, excluding
transferred share premium reserves, were previously included in this item.
Dividends paid and share repurchases are deducted from the amount.
Following the balance sheet date the Board of Directors proposed a dividend
of SEK 4.10 per share (3.75), or a total estimated payout of SEK 327.0
M (299.0).
NOTE 23
Notes
Other shareholders’ equity in the Parent Company
Statutory reserve
Refers to provisions to the statutory reserve and share premium reserve
prior to 2006. The statutory reserve is restricted equity and may not be
reduced through profit distributions.
Share premium reserve
When shares are issued at a premium, the amount exceeding their quota
value is transferred to the share premium reserve. Provisions to the share
premium reserve as of 2006 are non-restricted equity.
Fair value reserve
Refers to unrealized exchange rate gains or losses on long-term monetary
transactions with subsidiaries as well as external loans in foreign currency,
which are intended to hedge the Group’s translation exposure attributable
to net assets in foreign subsidiaries. The fair value reserve is non-restricted
equity.r i utländska dotterföretag. Fond för verkligt värde är fritt eget kapital.
Retained earnings
Refer to retained earnings from the previous year less the dividend paid and
share repurchases. Retained earnings are non-restricted equity.
Capital structure
The company’s definition of capital corresponds to shareholders’ equity
including the minority share, which at year-end totaled SEK 2,576.6 M
(2,548.9).
The measure used to monitor the company’s capital structure is the debt/
equity ratio, defined as the sum of interest-bearing liabilities and pension
provisions less liquid assets and interest-bearing receivables, divided by equity
including the minority share. The Board of Directors has established financial
objectives for the Group, where one of the restrictions is that the debt/
equity ratio may not exceed 150 percent over the long ter m. There is also an
external limit in the form of one of the covenants in the Group’s main loan
facility, which requires that the debt/equity ratio not exceed 175 percent.
The debt/equity ratio was 85.1 percent (81.2) at year-end.
PENSIONS
Employees in Intrum Justitia’s companies are covered by various pension
benefits. Some are defined benefit plans and are fully financed through assets
administered by fund managers.
The Group applies IAS 19 Employee Benefits, which contains, among
other things, uniform regulations on the actuarial calculation of provisions
for pensions in defined benefit plans. Defined benefit pension plans
are used by the Group’s companies in Belgium, France, Italy, Norway and
Germany. Employees in these countries account for a total of 26 (25) percent
of the entire Group’s personnel. The pension plan in Norway is a
funded obligation insured with the Norwegian insurance company Storebrand.
Other pension plans are not funded.
Provisions for pensions at year-end can be sub-divided into the following
components:
GROUP
SEK M 2010 2009 2008 2007 2006
Present value of fully or partly
funded obligations
73.9 38.9 36.8 40.3 32.0
Fair value of assets
under management
–66.9 –39.5 –37.2 –34.0 –28.7
Surplus/deficit in the plan 7.0 –0.6 –0.4 6.3 3.3
Present value of
unfunded obligations
26.6 32.6 32.9 29.5 27.7
Present value of
net obligation
33.6 32.0 32.5 35.8 31.0
Unrecognized actuarial
gains/losses
–1.5 7.4 6.9 –0.8 3.3
Provisions for pensions 32.1 39.4 39.4 35.0 34.3
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