BOOSTING OUR BUSINESS

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Corporate governance report Board, Group Management and local operations. The Board and Group Management work to identify and manage risks on Group level. The management of each local entity is responsible for identifying, assessing and managing the risks that primarily affect the local operations. Each local management team is responsible for identifying new risks at an early stage and managing known risks in a cost-effective way. The risk assessment of the financial reporting serves to identify risks that may impact the financial reporting, business areas and processes. The Group-wide risk management process includes identifying and assessing the most significant risks affecting the financial reporting and ensuring that suitable measures are taken to mitigate those risks. This work is based on self-assessments conducted by the Group Finance function complemented with an ongoing dialogue with regional finance managers. These assessments then form the basis for continued efforts to continuously improve internal controls in the financial reporting process. In 2015, the Group introduced a mandatory decisions- and risk analysis process process to be used in connection with material changes in the Group, such as acquisitions, launches of new products or services, major reorganizations or the establishment of new Group-wide systems or processes. In addition, the company has expanded and strengthened the implementation of crisis and continuity plans to permeate all units within the Group and these efforts will continue in 2016. Control activities To a large extent, control activities are steered by risk assessment. Controls are designed to manage the risks identified in the work described above. The control structures are based on the Group’s minimum requirements for internal controls in financial reporting and consist both of company-wide controls, controls at transaction level and general IT controls. Control activities include all subsidiaries within the Group and encompass methods and activities to secure assets, ascertain the accuracy and reliability in internal and external financial reports and to ensure adherence to legislation and established internal guidelines. The subsidiaries’ are required to submit a quarterly assurance from the local manager and financial manager, which is then reviewed and followed-up at several levels of the Group’s Finance Function. The Group Finance function is also implementing a number of control activities among local operations to safeguard good quality in the financial reporting of the Group’s subsidiaries. Information and communication The company works continuously to improve the awareness among employees of the control instruments applicable in financial reporting, both external and internal. Responsibilities and authorities are communicated within the Group to enable reporting and feedback from operations to Group Management and the Board’s Audit Committee. All key internal guidelines can be accessed via the company’s intranet and employees receive training on an ongoing basis. The local finance managers are part of a network that communicates to disseminate and share experiences, and to exchange information on new regulations and changes in the Group’s accounting principles. This cooperation serves to increase coordination and opportunities for comparisons of analyses, follow-up of accounting and business systems and the development of various key figures. Follow-up The Group is organized on a matrix model, whereby financial review primarily follows the three geographical regions and, secondarily the service areas Financial Services and Credit Management Services. Within the geographical regions, the respective regional and country managers bear considerable responsibility. Group Management exerts control through e.g. regular reviews of financial and operational performance, regional business review meetings twice a year and Board representation in the local companies. Each month, the subsidiaries submit their monthly closing reports, which consist of income statements divided by service area, balance sheets and key performance indicators in the Group’s reporting system. The closing figures are consolidated as a monthly report to Group Management. Consolidated accounts are prepared each month for internal follow-up and analysis. The subsidiaries receive feedback from the Group on their reporting and in-depth follow-up meetings are held with each country organization on a monthly basis. The follow-up of the internal control with regard to financial reporting is conducted primarily by the Group Finance function, and is reported to the Board’s Audit Committee. At the assignment of the Board, the internal audit also reviews and assesses how the internal control is organized and its efficacy, as well as following up on outstanding material observations from previous audits. Lastly, the Group’s external auditors also assess the internal control procedures as part of their annual audit and report on their findings to the Board, Group Management and the Board of Directors. Stockholm, March 24 2016 The Board of Directors of Intrum Justitia AB (publ) Auditor’s statement regarding the Corporate Governance Report To the annual meeting of the shareholders of Intrum Justitia AB (publ), corporate identity number 556607-7581. The Board of Directors is responsible for the Corporate Governance Report for 2015 presented on pages 82–86 and for it having been prepared in accordance with the Annual Accounts Act. We have read the Corporate Governance Report and, based on that reading and our knowledge of the company and the Group, we believe that we have a sufficient basis for our opinions. This means that our statutory examination of the Corporate Governance Report has a different focus and is substantially less in scope compared to the focus and scope of an audit in accordance with International Standards on Auditing and generally accepted auditing practices in Sweden. A Corporate Governance Report has been prepared, and we consider its statutory information to be consistent with the annual and consolidated accounts. Stockholm, March 24, 2016 Ernst & Young AB Erik Åström authorized public accountant 86 Intrum Justitia Annual Report 2015
Definitions Average number of employees: Average number of employees during the year, recalculated to full-time positions. Beta: Measure of the share price’s fluctuation in relation to the market as a whole, in the form of the OMX Stockholm Index, over the course of the year. Changes that precisely follow the index produce a beta of 1.0. A figure below 1.0 means that the changes in the share price have been smaller than those in the index. Dilution: Theoretical impact of outstanding employee stock options on the number of shares and shareholders’ equity. Dividend payout: Dividend as a percentage of net earnings for the year. Earnings per share: Net earnings for the year attributable to the Parent Company’s shareholders divided by the average number of shares during the year. Net debt: Interest-bearing liabilities and pension provisions less liquid funds and interest-bearing receivables. Net debt in relation to operating earnings before depreciation and amortization: Net debt divided by the operating result before depreciation of tangible and intangible assets as well as amortization of Purchased debt. Operating cash flow per share: Cash flow from operating activities divided by the average number of shares during the year. Operating earnings: Earnings before net financial items and income tax. Operating margin: Operating earnings as a percentage of revenues. Organic growth: Increase of net revenues in the continuous business, excluding any impact of mergers and acquisitions, revaluations of Purchased Debt and changes in currency exchange rates. P/E Price /earnings ratio: Year-end share price divided by earnings per share before dilution. P/S Price /sales ratio: Year-end share price divided by sales per share. Return on Purchased debt: The service line earnings divided by the average value of Purchased debt Revaluations: Operating revenue derived from the increase or decrease in the carrying value of a Purchased Debt portfolio that is related to changes during the period in estimates of future cash flows. Revenues: Variable collection commissions, fixed collection fees, debtor fees, guarantee commissions, subscription revenue and income within Financial Services. Yield: Dividend per share divided by the year-end share price. Information to the shareholders Annual General Meeting The Annual General Meeting of Intrum Justitia AB will be held on on Wednesday 20 April, 2016 at 3.00 pm the company’s head office, Hesselmanstorg 14, Nacka. A notice will be published in the Svenska Dagbladet and Post- och Inrikes Tidningar. The notice and other information released prior to the Annual General Meeting are available at www.intrum.com. Dividend The Board of Directors proposes a dividend of SEK 8.25 (7.00) per share for fiscal year 2015. Financial report dates 2016 Annual General Meeting 2016, April 20 Interim report January–March, April 20 Interim report January–June, July 19 Interim report January–September, October 19 Other information from Intrum Justitia Financial reports are published in Swedish and English and can be ordered from Intrum Justitia AB, Corporate Communications Department, SE-105 24 Stockholm, Sweden. The reports and other information from the company are published on the Group’s website, www.intrum.com. Communication with shareholders, analysts and the media is a priority. A presentation of Intrum Justitia’s results and operations is made for analysts and investors in Stockholm after the release of each interim report. In addition to these contacts, representatives of the company meet current and potential shareholders on other occasions such as one-onones and meetings with shareholder clubs. Please visit our website, www.intrum.com, for a general presentation of the Group as well as a detailed IR section with corporate governance documents, analysis tools, an insider list, etc. Shareholder contact Annika Billberg Ph. +46 8-546 10 203 e-mail: ir@intrum.com A printed version of this annual report can be ordered via ir@intrum.com or be downloaded as a pdf-document at www.intrum.com. In case of any discrepancy between the Swedish and English versions of this Annual Report, the Swedish version shall govern. Intrum Justitia’s annual report 2015 has been produced in cooperation with Passion:Reutersten AB. Design: J.Friman. Photography: Lena Larsson. Intrum Justitia AB, corp. ID no. 556607-7581. Intrum Justitia Annual Report 2015 87
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BOOSTING OUR BUSINESS Annual Report
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2015 in brief Revenues by region, %
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Intrum Justitia in brief Intrum Jus
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During the year we also strengthene
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Business concept, mission, vision,
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Our credit management offering Soun
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Case Interflora Interflora: A solid
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Our financial services offering Cus
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Corporate Social Responsibility (CS
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Intrum Justitia Annual Report 2015
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Market and clients Intrum Justitia
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Service lines Service lines Intrum
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Employees and values Shared values
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Employees and values Ciara McAdam S
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The share The share Intrum Justitia
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Financial overview Financial overvi
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Board of Directors’ Report Operat
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Page 79 and 80: Board of Directors Charlotte Ström
Page 81 and 82: Group Management Team Jean-Luc Ferr
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