Why Read?

• Understand feasibility of Intrum’s Business Plan FY 24-28, particularly in respect of Cash EBITDA gains in Servicing, from Ophelos and from Cerberus front book partnership
• Understand SUNs & MTNs restructuring package value, comprising 2L Exchange Notes and equity
• Understand why Intrum could be an attractive acquisition candidate for a particular buyer and potential upside for its planned new 2L Exchange Notes in this scenario
• Understand likely market value range of Intrum’s remaining portfolios owned post sale of back book to Cerberus JV based on industry expert network-guided pricing parameters
• Understand potential cash distributions to Intrum from 35% equity stake in Cerberus JV
• Understand doValue’s performance (pure servicer focused on Southern Europe) and comparison vs Intrum’s Servicing business. Valuation implications for Intrum’s Servicing business from doValue and servicer M&A transaction multiples for Southern Europe and from broader universe of servicer M&A transaction multiples over past decade

What’s New?

• Financial projections, valuation and sensitivities – base, bear, bull cases pro forma for Refinancing & Recapitalisation Transaction

Questions Answered

• Is it feasible for Intrum to increase Servicing Cash EBITDA from c. SEK 3.4bn at FY 23 to c. SEK 5.0bn in FY 28 (excluding EBITDA from Cerberus front book partnership)?
• How transformational could Ophelos be with respect to reducing Intrum’s Servicing direct costs and how much of this is factored into the Business Plan?
• What cost-to-collect ratio progression are we likely to see for Intrum’s Investing segment post back book sale to Cerberus JV, as new portfolio purchases are below ERC replacement rate and given ERC composition between balances already on payment plans vs assumed conversion of non-payers to payers?
• Is Intrum an attractive acquisition candidate for a particular firm and what potential upside could there be to its planned new 2L Exchange Notes from this?
• How does Intrum’s Servicing business compare with doValue’s? Why has doValue’s servicing AUM declined whilst Intrum’s has increased?
• What are Intrum’s EBIT(DA) margins on servicing financial services claims vs industrial claims? Estimating unit economics per call agent of servicing financial services claims vs industrial claims
• How do we estimate a weighted average EV / EBITDA multiple for Intrum’s Servicing business, reflecting the very different structural dynamics across its geographic markets?