BOOSTING OUR BUSINESS

Market and clients
Intrum Justitia
– a full-service player in
a fragmented market
The European credit management market is fragmented. Many small players
conduct collection services locally in their individual countries – setting up
business as a local provider of simpler collection services is relatively easy. Other
large, international players offer the complete range of credit management
services, from credit decisions to account ledger services, dunning and collection.
Intrum Justitia is one of these.
What distinguishes us from other large players in Europe
though is that we are both a streamlined services provider
and a financial player. That is to say, that as a services
provider, we offer a complete range of credit management
services to both large and small companies throughout
Europe. And, as a financial player, we invest in portfolios
of overdue receivables and pursue collection measures
to secure payment for these receivables. In addition, we
offer a number of financing services, primarily to e-trading
companies, which makes us all the more unique.
When it comes to investments in overdue receivables, the
market is dominated by a small number of large European
companies. Investment operations of this kind require both
considerable capital and a substantial quantity of data on
consumers’ and companies’ payment behaviors to achieve
success. This is characteristic of Intrum Justitia.
A market with growth potential
Many companies in Europe still operate without engaging
a specialist for their credit management. Consequently,
good growth potential remains. In several markets
in Southern and Central Europe, there is far less of
a traditionof engaging credit management services than
in Northern Europe.
The uncertainty surrounding the economic trend
in many countries also means that companies’ need
to establish stronger and more predictable cash flow is
increasing. Also increasing is the need to create additional
alternatives for the financing of working capital, for
example through the sale of receivables – several trends
that, in the long-term, benefit Intrum Justitia.
In our assessment, one large engine for growth over the
next few years will be the market for investment in overdue
receivables. In the long-term, we also believe that
our growth will derive from assisting companies in more
ways to reduce their overall financial risk through, for
example, services that help them manage the entire payment
flow and by assuming the credit risk before invoices
mature for payment.
We also perceive considerable opportunities to generate
value for our clients through the newer services that
involve financing before invoices mature for payment,
such as factoring or payment solutions for e-trade.
Clients of all sizes
Intrum Justitia’s clients operate primarily within fields
including telecom, energy, banking and retail – helping
clients with large volumes of consumer receivables is our
speciality. But we also work with tens of thousands of
small and medium-sized companies that need to focus on
their operations rather than on payment management.
We have nearly 75,000 clients in 19 countries. The 30
largest clients account for about 15 percent of Intrum
Justitia’s revenues, although no individual client
accounts for more than 2 percent.
Some examples of clients in the financial sector include
the Nordic banks Swedbank and Nordea. One of the Group’s
largest clients is Ärztekasse of Switzerland, which operates in
the healthcare segment, while clients in the energy sector
include Savon Voima in Finland and the Nordic electricity
companies Fortum and E.ON. In the telecom segment,
we work with clients including Magyar Telekom Nyrt
in Hungary, Orange in France, MEO in Portugal, DNA
Oy in Finland and Vodafone in Spain. Clients in other
sectors include Fleurop Interflora in Switzerland, Canon in
Portugal, Schibsted in Norway and Fitness Dk in Denmark.
Under our Byjuno brand in Switzerland and Avarda
in the Nordic region, we are collaborating with Vorwerk
International Strecker & Co of Switzerland, a worldleading
company in sales of consumer products, and
the chain store Cervera and tire company Euromaster in
Sweden and consumer electronics company Anttila in
Finland.
Intrum Justitia Annual Report 2015
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