FULLTEXT DEL 2 AV 3
Årsredovisning 2024
Financial statements
Contents
Group
Income statement /four.tf/seven.tf
Statement of other comprehensive income /four.tf/seven.tf
Statement of /f_i.liga nancial position /four.tf/eight.tf
C a s h /f_l.liga o w s /four.tf/nine.tf
Statement of changes in equity /five.tf/zero.tf
Parent company
Income statement /five.tf/one.tf
Balance sheet /five.tf/one.tf
Cash /f_l.liga ow statement /five.tf/one.tf
Statement of changes in shareholders’ equity /five.tf/two.tf
Note 1 Basis of preparation /five.tf/three.tf
Note 2 Accounting policies /five.tf/three.tf
Note 3 Critical accounting estimates and assumptions: /five.tf/eight.tf
Note 4 Income /five.tf/nine.tf
Note 5 Costs /five.tf/nine.tf
Note 6 Net /f_i.liga nancial expenses /six.tf/zero.tf
Note 7 Taxes /six.tf/one.tf
Note 8 Intangible assets /six.tf/two.tf
Note 9 Portfolio investments /six.tf/four.tf
Note 10 Associates and Joint Ventures /six.tf/four.tf
Note 11 Tangible /f_i.liga xed assets /six.tf/six.tf
Note 12 Other /f_i.liga nancial assets /six.tf/seven.tf
Note 13 Acquisitions of operations /six.tf/seven.tf
Note 14 Discontinued operations /six.tf/seven.tf
Note 15 Receivables and other operating assets /six.tf/eight.tf
Note 16 Fiduciary assets and liabilities /six.tf/eight.tf
Note 17 Cash and cash equivalents /six.tf/eight.tf
Note 18 Net de/f_i.liga ned bene/f_i.liga t liability /six.tf/eight.tf
Note 19 Borrowing /six.tf/nine.tf
Note 20 Other /f_i.liga nancial liabilities /seven.tf/zero.tf
Note 21 Other provisions /seven.tf/zero.tf
Note 22 Lease liability /seven.tf/zero.tf
Note 23 Payables and other operating liabilities /seven.tf/zero.tf
Note 24 Share capital and reserves /seven.tf/zero.tf
Note 25 Non-controlling Interest /seven.tf/one.tf
Note 26 Pledged assets and contingent liabilities /seven.tf/one.tf
Note 27 Segment analysis /seven.tf/two.tf
Note 28 Financial risk management /seven.tf/four.tf
Note 29 Related parties /seven.tf/seven.tf
Note 30 Subsequent events /seven.tf/seven.tf
Note 31 Average number of employees /seven.tf/seven.tf
Note 32 Share-based payments /seven.tf/eight.tf
Note 33 Terms and conditions of employment for key
executives
/seven.tf/eight.tf
Note 34 Group companies /eight.tf/zero.tf
Proposed appropriation of earnings 85
Auditor’s report /eight.tf/six.tf
Financial metrics /eight.tf/nine.tf
Performance reconciliation /eight.tf/nine.tf
Net debt reconciliation /eight.tf/nine.tf
De/f_i.liga nitions /nine.tf/zero.tf
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Consolidated statement of income
SEK M Note 2024 20231
Servicing Income 4 11,791 11,171
Interest Income 4 5,093 5,232
Other Income 1,149 1,302
Income 18,033 17,705
Direct Costs 5 -10,078 -9,409
Gross Earnings 7,955 8,296
Net Credit Gains Portfolio Investments 14 -79 -258
Other operating items 8 -1,320 -
Shares of Associates and Joint Ventures 10 517 613
Operating Income 7,073 8,651
Indirect Costs 5 -5,132 -5,875
Net Operating Income (EBIT) 1,941 2,776
Net Financial Expenses 6 -3,301 -2,944
Net Loss before Tax -1,360 -168
Tax Expense 7 -624 -419
Net Loss from Continuing Operations -1,984 -587
Net Loss/Income from Discontinued Operations 2 14 -1,361 644
TOTAL NET LOSS/INCOME FOR THE YEAR -3,345 57
Attributable to Shareholders:
Parent Company's Shareholders of Intrum AB (publ) -3,697 -187
Non-Controlling Interest 352 244
TOTAL NET LOSS/INCOME FOR THE YEAR -3,345 57
Average Number of Shares (‘000):
Before dilution 24 120,570 120,537
After dilution 24 120,570 120,537
Net Loss Per Share attributable to Intrum AB, SEK:
Before dilution -30.67 -1.56
After dilution -30.67 -1.56
Net Loss Per Share, SEK:
Before dilution -27.74 0.47
After dilution -27.74 0.47
Consolidated statement of other
comprehensive income
SEK M Note 2024 20231
Net Loss/Income for the year -3,345 57
Items Subsequently Reclassi/f_i.liga ed to Statement of Income
Net Foreign Exchange Translation Di/f_f.liga erences -278 -247
Net Investment Hedging Gains 542 261
Items Subsequently Reclassi/f_i.liga ed to Statement of Income 264 14
Items Not Subsequently Reclassi/f_i.liga ed to Statement of Income
Net Pension Bene/f_i.liga t Liability Measurement Di/f_f.liga erences 11 -12
Items Not Subsequently Reclassi/f_i.liga ed to Statement of Income 11 -12
Net Other Comprehensive Income 275 2
COMPREHENSIVE LOSS/INCOME FOR THE YEAR -3,070 59
Comprehensive loss/income for the year attributable to:
Parent Company's Shareholders in Intrum AB (publ) -3,337 -182
Non-Controlling Interest 267 240
Average Number of Shares (‘000):
Before dilution 24 120,570 120,537
After dilution 24 120,570 120,537
Total Comprehensive Loss Per Share attributable to Intrum AB, SEK:
Before dilution -27.68 -1.51
After dilution -27.68 -1.51
Total Comprehensive Loss Per Share, SEK:
Before dilution -25.47 -0.49
After dilution -25.47 -0.49
1) Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 14
to the consolidated /f_i.liga nancial statements.
2) The results of discontinued operations, comprising the post-tax pro/f_i.liga t, is shown as a single amount on the face of the income statement. An analysis of this
amount is presented in Note 14 to the consolidated /f_i.liga nancial statements.
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Consolidated statement of /f_i.liga nancial position
SEK M Note 31 Dec 2024 31 Dec 2023
ASSETS
Non-Current Assets
Intangible Assets 8 39,184 39,829
Portfolio Investments 9 22,695 35,294
Investment in Associates and Joint Ventures 10 2,352 823
Property, Plant and Equipment 11 225 280
Right of Use Assets 11 679 584
Deferred Tax Assets 7 1,986 2,197
Other Financial Assets 12 182 175
Total Non-Current Assets 67,303 79,182
Current Assets
Assets Held for Sale 14 - 496
Property Holdings 287 329
Tax Receivable 935 686
Derivatives 28 16 324
Receivables and Other Operating Assets 15 5,213 4,316
Fiduciary Assets 16 1,281 1,106
Cash and Cash Equivalents 17 2,504 3,769
Total Current Assets 10,236 11,026
TOTAL ASSETS 77,539 90,208
SEK M Note 31 Dec 2024 31 Dec 2023
LIABILITIES & SHAREHOLDERS' EQUITY
Non-Current Liabilities
Net De/f_i.liga ned Bene/f_i.liga t Liability 18 88 142
Borrowings 19 36,862 51,899
Other Financial Liability 20 616 641
Provisions 21 158 107
Deferred Tax Liability 7 1,106 1,411
Lease Liability 22 526 436
Total Non-Current Liabilities 39,356 54,636
Current Liabilities
Liabilities Held for Sale 14 - 100
Borrowings 19 13,839 7,953
Tax Payable 562 572
Payables and Other Operating Liabilities 23 6,540 6,041
Derivatives 28 61 303
Fiduciary Liabilities 16 1,281 1,106
Provisions 21 248 376
Lease Liability 22 185 193
Total Current Liabilities 22,716 16,644
Total Liabilities 62,072 71,280
Shareholders' Equity
Share Capital 24 3 3
Reserves 24 21,370 18,428
Retained Earnings 24 -7,985 -1,679
Equity attributable to Equity Holders 13,388 16,752
Non-Controlling Interest 25 2,079 2,176
Total Equity 15,467 18,928
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 77,539 90,208
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Consolidated statement of cash /f_l.liga ows
SEK M Note 2024 20231
Cash Flows from Operating Activities
Net Operating Income (EBIT) from Continuing Operations 1,941 2,776
Net Operating Income (EBIT) from Discontinued Operations 14 504 1,588
Net Operating Income / EBIT 2,445 4,364
Depreciation, Amortisation and Impairment 5,8 2,628 1,536
Net Credit Gains / (Losses) on Portfolio Investments 9 79 -9
Other Adjustment for Items Not Included in Cash Flow -325 334/uni00A0
Non-Cash Adjustments 2,382 1,861/uni00A0
Dividends received from Associates and Joint Ventures 351 412/uni00A0
Operating Cash Flows Before Working Capital Changes 5,178 6,637
Changes to Working Capital -608 -189
Operating Cash Flows Before Taxes 4,570 6,448
Income Taxes Paid -860 -1,137/uni00A0
Net Cash Flows from Operating Activities 3,710 5,311
Cash Flows from Investing Activities
Acquisition of Portfolio Investments -1,479 -5,114
Amortisation of Portfolio Investments 4,442 5,385/uni00A0
Acquisition of Intangible Assets -531 -229
Disposal of Intangible Assets 23 2/uni00A0
Acquisition of Property, Plant and Equipment 11 -54 -124
Disposal of Property, Plant and Equipment 6 1/uni00A0
Investment in Associated Companies / Subsidiaries -1,570 -2,347
Disposal of Associated Companies / Subsidiaries 8,640 -134
Other cash /f_l.liga ow from investing activitties -274 -
Net Cash Flows from Investing Activities 9,203 -2,560
SEK M Note 2024 20231
Cash Flows from Financing Activities
Net Proceeds from Borrowings -10,491 3,349
Repayment of Other Financial Liabilities 100 -294
Repayment of Leases -229 -101
Share Repurchases -63 -355
Finance Income Received 122 68
Finance Expense Paid -3,430 -2,994
Receipts from Settlement of Hedging Derivatives 767 1,168
Payments for Settlement of Hedging Derivatives -287 -776
Net Payments on Settlement of Other Derivatives -790 -321
Dividends Paid to Parent Company's Shareholders - -1,627
Dividends Paid to Non-Controlling Interest -285 -380
Net Cash Flows from Financing Activities -14,586 -2,263
Net Cash Out/f_l.liga ow/In/f_l.liga ow during the year -1,673 488
Cash and Cash Equivalents at the beginning of the year 17 3,769 3,474
Foreign Exchange Di/f_f.liga erences 408 4
Cash and Cash Equivalents from Discontinued Operations - -197
Cash and Cash Equivalents at the end of the year 17 2,504 3,769
1) Comparative cash /f_l.liga ows have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note
14 to the consolidated /f_i.liga nancial statements.
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Consolidated statement of changes in equity
SEK M Notes Share Capital
Other Paid-in
Capital Reserves
Retained Earnings
Incl. Net Earnings for
the Year
Total Shareholders'
Equity Attributable
to Parent Company’s
Shareholders
Non-Controlling
Interests
Total Shareholder’s
Equity
As at 1 January 2024 3 17,442 5,977 -6,670 16,752 2,176 18,928
Comprehensive Loss/income for the year
Net Loss/Income for the year - - - -3,697 -3,697 352 -3,345
Other Comprehensive income for the year
Net De/f_i.liga ned Bene/f_i.liga t Remeasurementas - - 11 11 - 11
Foreign Exchange Di/f_f.liga erences - - -193 - -193 -85 -278
Net Investment Hedge Di/f_f.liga erences - - 542 - 542 - 542
Total other comprehensive income - - 349 11 360 -85 275
Total comprehensive income for the year - - 349 -3,686 -3,337 267 -3,070
Share Dividend 24 - - - - - -285 -285
Share-based Employee Remuneration 32 - - -27 - -27 -27
NCI Share Repurchases 25 - - - - - -79 -79
Closing balance, 31 Dec 2024 3 17,442 6,299 -10,356 13,388 2,079 15,467
As at 1 January 2023 3 17,442 5,963 -4,869 18,539 2,661 21,200
Comprehensive Loss/income for the year
Net Loss/Income for the year - - - -187 -187 244 57
Other Comprehensive income for the year
Foreign Exchange Di/f_f.liga erences - - -247 - -247 - -247
Net Investment Hedging Di/f_f.liga erences - - 281 - 281 - 281
De/f_i.liga ned Bene/f_i.liga t Remeasurement Di/f_f.liga erences - - - -8 -8 -4 -12
Income Tax on Other Comprehensive Income - - -20 - -20 - -20
Total other comprehensive income - - 14 -8 6 -4 2
Total comprehensive income for the year - - 14 -195 -181 240 59
Share Dividend 24 - - - -1,627 -1,627 -380 -2,007
Share-based Employee Remuneration 32 - - - 21 21 - 21
NCI Share Repurchases 25 - - - - - -345 -345
As at 31 December 2023 3 17,442 5,977 -6,670 16,752 2,176 18,928
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Parent company
Income statement
SEKM Note 2024 2023
Other income 4 1,335 1,617
Income 1,335 1,617
Direct costs 5 -553 -286
Gross Earnings 782 1,331
Operating Income 782 1,331
Indirect costs 5 -1,613 -2,114
Net Operating loss/EBIT -831 -783
Net /f_i.liga nancial income 6 3,417 738
Pro/f_i.liga t/Loss before tax 2,586 -45
Taxes 7 -161 24
Pro/f_i.liga t/Loss for the period 2,425 -21
Balance sheet
31 Dec 31 Dec
SEK M Note 2024 2023
ASSETS
Non-current Assets
Intangible Assets 8 141 527
Tangible Assets 11 35 4
Participations in Group companies 34 41,793 39,152
Deferred tax asset 169 320
Receivables from Group companies 1 13,280 38,971
Total Non-current assets 55,418 78,974
Current Assets
ST Receivables from Group companies1 30,267 5,289
Other receivables 15 31 23
Prepaid expenses and accrued income 15 868 180
Derivatives 28 16 324
Cash and cash equivalents 17 672 762
Total Current Assets 31,854 6,578
TOTAL ASSETS 87,272 85,552
SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 24 3 3
Statutory reserve1 24 423 809
Total Restricted Reserves 426 812
Share premium 17,442 17,442
Retained earnings1 -12,228 -12,566
Net earnings for the year 2,425 -21
Total Non-restricted Equity 7,639 4,855
Total Shareholder’s Equity 8,065 5,667
Non-Current Liabilities
Liabilities to credit institutions 19 12,231 14,886
Bond loans 19 24,631 37,014
Liabilities to Group companies 24,015 17,704
Other long term liabilities 358 -
Total long-term liabilities 61,235 69,604
Current Liabilities
Liabilities to credit institutions 1,030 -
Bond loans 19 12,809 7,259
Commercial paper 19 - 694
Accounts payable 23 19 27
Liabilities to Group companies ST 2,744 845
Other current liabilities 23 102 5
Accrued expenses 23 1,207 1,148
Derivatives 28 61 303
Total current liabilities 17,972 10,281
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 87,272 85,552
Cash /f_l.liga ow statement
SEK M Note 2024 2023
Cash /f_l.liga ows from operating activities
Operating earnings (EBIT) -831 -783
Not included in the cash /f_l.liga ow
Amortisation/depreciation and impairment 539 149
Other adjustment for items not included in cash
/f_l.liga o w
-2 21
Interest received 3,793 3,590
Interest paid -4,391 -3,878
Payments for other /f_i.liga nancial expenses 119 -112
Income tax paid -9 -297
Cash /f_l.liga ow from operating activities before
changes in working capital
-782 -1,310
Changes in Working Capital 3,443 186
Cash /f_l.liga ow from operating activities 2,661 -1,124
Investing activities
Purchases of intangible /f_i.liga xed assets -165 -124
Purchases of tangible /f_i.liga xed assets 11 -40 -1
Net Purchases of shares in subsidiaries and
associated companies
-3,864 -4,254
Share dividend from subsidiaries 4,259 1,333
Net Cash Flows from Investing Activities 190 -3,046
Financing activities
Borrowings and repayments of loans -10,089 3,506
Net loans to subsidiaries 7,153 2,508
Share repurchases -5 -
Share dividend to Parent Company’s shareholders - -1,627
Net Cash Flows from Financing Activities -2,941 4,387
Net Cash Out/f_l.liga ow/In/f_l.liga ow during the year -90 217
Liquidity at the beginning of the year 762 545
Liquidity at the end of the year 17 672 762
1) This has been restated - see note 2 and the Parent Statement of Changes in Equity
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Parent company
Statement of changes in shareholders’ equity
See also Note 24
SEK M Share Capital Other Paid-in Capital Statutory Reserve Retained Earnings Net Eanings/Loss for the Year Total Shareholder’s Equity
As at 1 January 2024 3 17,442 1,354 -13,111 -21 5,667
Prior year adjustment (Note 2) - - -545 545 - -
As at 1 January 2024 as restated 3 17,442 809 -12,566 -21 5,667
Comprehensive income for the year
Total net income for the year - - - - 2,425 2,425
Total comprehensive income for the year - - - - 2,425 2,425
Disposition of prior year’s result - - - -21 21 -
Development fund - - -386 386 - -
Transactions with Group Owners in 2024
Share-based Employee Remuneration - - - -27 - -27
As at 31 December 2024 3 17,442 423 -12,228 2,425 8,065
As at 1 January 2023 3 17,442 827 -8,968 -2,010 7,294
Comprehensive income for the year
Total net income for the year -21 -21
Total comprehensive income for the year - - - - -21 -21
Disposition of prior year’s result - - - -2,010 2,010 -
Development fund - - 527 -527 -
Transactions with Group Owners in 2023
Share Dividend - - - -1,627 - -1,627
Share-based Employee Remuneration - - - 21 - 21
As at 31 December 2023 3 17,442 1,354 -13,111 -21 5,667
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Notes
Accounting policies
Note 1 Basis of preparation
Intrum AB, as a standalone entity (“the Company” or “the Parent”), is regis-
tered and domiciled in Stockholm, Sweden. The Company is listed as a large
company on Nasdaq Stockholm, a stock exchange located in Sweden.
The Company and its subsidiaries’ (collectively, “the Group”) main operation
is to provide payment solutions, credit and collection services to clients and to
invest in non-performing loans. - The Group operates in the European market.
The /f_i.liga nancial statements are presented in Swedish Krona (“SEK”) and
rounded to the nearest million (“SEK M”).
Accounting Framework:
The Group’s consolidated /f_i.liga nancial statements are prepared in compliance
with:
• the Swedish Annual Accounts Act – Årsredovisningslag (1995:1554);
• the EU-adopted (International Financial Reporting Standards (“IFRS”),
including interpretations issued by the IFRS Interpretation Committee
(“IFRIC”); and
• IFRS ® redovisningsstandarder (“Rådet för Finansiell Rapportering” or
“RFR”)) 1 Supplementary Accounting Rules for Groups issued by the
Swedish Financial Reporting Board (“SFRB”).
The Company’s standalone /f_i.liga nancial statements are prepared using the same
accounting framework as the Group’s consolidated /f_i.liga nancial statements. In
addition, the Company’s /f_i.liga nancial statements comply with RFR 2 Account-
ing for Legal Entities issued by the SFRB. RFR 2 requires that the standalone
/f_i.liga nancial statements should be prepared in accordance with the EU-adopted
IFRSs within the framework of the Swedish Annual Accounts Act, taking into
account the connection between reporting and taxation. The recommenda-
tion speci/f_i.liga es exemptions and additions relative to IFRSs’ requirements.
The /f_i.liga nancial statements are composed of the primary statements: State-
ment of Income (“SOI”), Statement of Other Comprehensive Income
(“SOCI”), Statement of Financial Position (“SFP”), Statement of Cash Flows
(“SCF”), Statement of Changes in Equity (“SCE”) and accompanying notes
(“the Notes”) to the primary statements.
The SOI is prepared based on the ‘function of expenses’ method: “Direct
Costs” and “Indirect Costs”. The Notes provide details based on the ‘nature
of expenses’ method. The SCF is prepared based on the ‘indirect’ method.
Going-concern Assumption:
The /f_i.liga nancial statements are prepared on a going-concern basis. The Group’s
management has assessed the following:
• The ongoing recapitalization transaction, which has received approval in
the US court for the prepackaged Chapter 11 on 31 December 2024. This
approval is a signi/f_i.liga cant milestone, indicating strong judicial support for
the restructuring e/f_f.liga orts;
• The settlement with the opposing bondholders, which has been success-
fully negotiated, ensuring that all major stakeholders are aligned with the
recapitalization plan, and that there is an overwhelming majority support-
ing the company’s ongoing plan;
• The recapitalization is expected to be successfully implemented within
the communicated timeline, as planned and executed by the management
team.
• Secure future performance of the Group and ensure robust /f_i.liga nancial
health moving forward, including its liquidity and the new capital struc-
ture, which has been thoroughly evaluated and assessed during the
process.
Given these comprehensive assessments, Management has concluded at the
time of approval of the 2024 Annual and Sustainability Report that there are
no /f_i.liga nancial or other indicators that cast signi/f_i.liga cant doubt upon the Group’s
ability to operate and meet its obligations in the next 12-18 months and into
the foreseeable future from the approval date. Furthermore, considering the
current steps of progress, there is a very high likelihood that the transaction
will succeed. The alignment of key stakeholders, judicial approvals, and
strategic planning all contribute to a strong foundation for the Group’s
continued stability and growth. Management has also put in place a much
higher focus on performance management and is continuing to further
optimize the use of liquid assets in the Group to enhance the working capital
and use of its proceeds.
Note 2 Accounting policies
Standards, Interpretations, Rules and Other Changes Adopted During
2024:
Amendment to IAS 1 Presentation of Financial Statements (January 2020,
July 2020 & October 2022):
In January 2020, the IASB issued amendments to IAS 1. The amendments
provided clari/f_i.liga cation between ‘current’ and ‘non-current’ classi/f_i.liga cation
of liabilities. The guidance clari/f_i.liga es that a liability should be classi/f_i.liga ed as
‘non-current’ if an entity has the right at the end of the reporting period to
defer the settlement of liability for at least 12 months from the reporting date.
It is also speci/f_i.liga ed that the classi/f_i.liga cation is una/f_f.liga ected by expectations about
whether an entity will exercise its right.
In October 2022, further amendments to IAS 1 were issued. The amend-
ments specify that covenants compliance and any renegotiations by the end
of the reporting period that allow deferring settlement for at least 12 months
should result in ‘non-current’ classi/f_i.liga cation.
The amendments also require additional disclosures regarding the risk of
the non-current liabilities becoming repayable within 12 months after the
reporting period. Events related to current liabilities, such as re/f_i.liga nancing on
a long-term basis or recti/f_i.liga cation of a breach of a long-term loan agreement,
are disclosed as non-adjusting events in accordance with IAS 10 Events after
the Reporting Period, if such events occur after the reporting date and before
the /f_i.liga nancial statements are authorised for issue.
The update is e/f_f.liga ective from 1 January 2024.The update had no material
impact on the classi/f_i.liga cation of liabilities or on the subsequent events disclo-
sure requirements included in this update.
Amendment to IFRS 16 Leases (September 2022):
In September 2022, the IASB amended IFRS 16 to require a seller-lessee to
determine ‘lease payments’ or ‘revised lease payments’ in a way that the sell-
er-lessee would not recognise any amount of the gain or loss that relates to
the right of use it retains. This amendment relates to sales and leaseback
transactions.
The update is e/f_f.liga ective from 1 January 2024.This amendment had no
impact on the Groups’ /f_i.liga nancial statements.
Amendment to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments : Disclosures (May 2023):
In May 2023, the IASB issued guidance requiring an entity to disclose infor-
mation around supplier /f_i.liga nance arrangements that assists users in under-
standing such arrangements’ impact on the entity’s liabilities, cash/f_l.liga ows and
exposure to liquidity risk. The disclosure requirements include both quantita-
tive and qualitative information.
The update is e/f_f.liga ective from 1 January 2024. The Group has no exposure
to supplier /f_i.liga nance arrangements.
Changes to the Primary Statements
Restatement of Parent Statement of Changes in Equity
The 2023 Parent Statement of Changes in Equity re/f_l.liga ected a transfer from
retained earnings to the statutory reserve that was equal to the amount
of intangibles held at 31 December 2023 of SEK 527 M instead of transfer-
ring the movement in intangible of SEK -20 M from the statutory reserve
to retained earnings. Total closing equity at 31 December 2023 was not
impacted.
No other changes have been made to the primary statements in 2024.
Changes to the Notes
Note 10 previously disclosed information in relation to all associates and joint
ventures. The level of disclosure has been reduced in accordance with the
IFRS requirement to disclose relevant information on associates and joint
ventures that are material to the Group.
The disclosures in note 27 have been expanded to provide further seg-
mental information in relation to investing revenues by market.
Note 28 has been expanded to include additional disclosures relating to
the following:
• the fair value of /f_i.liga nancial instruments; and
• interest rates that apply to /f_i.liga nancial assets.
Note 9 has been updated to re/f_l.liga ect the total amount of undiscounted
expected credit losses at initial recognition on /f_i.liga nancial assets initially rec-
ognised during the reporting period.
Standards, Interpretations, Rules and Other Changes E/f_f.liga ective in 2025
Onwards:
At the date of authorisation of these /f_i.liga nancial statements, the Group has not
applied the following new and revised IFRS Accounting Standards that have
been issued but are not yet e/f_f.liga ective.
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Amendments to IAS 21 Lack of Exchangeability
IFRS 18 Presentation and Disclosures in Financial Statements
IFRS 19 Subsidiaries without Public Accountability: Disclosures
Amendment to IAS 21 The E/f_f.liga ects of Changes in Foreign Exchange Rates
(August 2023):
The amendment provides guidance for foreign currency exposures where
foreign currency transactions are not readily available for a timely conversion
to other currencies. The amendment further provides guidance on how to
identify such non-exchangeable currencies. In case an entity has exposure to
such non-exchangeable currencies, the amendment requires additional dis-
closure for users of the /f_i.liga nancial statements.
The update is e/f_f.liga ective from 1 January 2025, with an option to apply ear-
lier. The Group does not have any material exposure to non-exchangeable
foreign currency transactions.
IFRS 18 Presentation and Disclosures in Financial Statements (April 2024):
IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS
1 unchanged and complementing them with new requirements. In addi-
tion, some IAS 1 paragraphs have been moved to IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors and IFRS 7. Furthermore, the
IASB has made minor amendments to IAS 7 and IAS 33 Earnings per Share.
IFRS 18 introduces new requirements to:
• present speci/f_i.liga ed categories and de/f_i.liga ned subtotals in the statement of
pro/f_i.liga t or loss;
• provide disclosures on management-de/f_i.liga ned performance measures
(MPMs) in the notes to the /f_i.liga nancial statements; and
• improve aggregation and disaggregation.
An entity is required to apply IFRS 18 for annual reporting periods beginning
on or after 1 January 2027, with earlier application permitted. The amend-
ments to IAS 7 and IAS 33, as well as the revised IAS 8 and IFRS 7, become
e/f_f.liga ective when an entity applies IFRS 18. IFRS 18 requires retrospective appli-
cation with speci/f_i.liga c transition provisions.
Management anticipate that the application of these amendments will
have an impact on the Group’s consolidated /f_i.liga nancial statements in future
periods.
IFRS 19 Subsidiaries without Public Accountability: Disclosures (May 2024):
IFRS 19 permits an eligible subsidiary to provide reduced disclosures when
applying IFRS Accounting Standards in its /f_i.liga nancial statements.
Eligible entities can apply IFRS 19 in their consolidated, separate or indi-
vidual /f_i.liga nancial statements. An eligible intermediate parent that does not
apply IFRS 19 in its consolidated /f_i.liga nancial statement may do so in its separate
/f_i.liga nancial statements.
The new standard is e/f_f.liga ective for reporting periods beginning on or after
1 January 2027 with earlier application permitted.
Management do not anticipate that IFRS 19 will be applied for purposes of
the consolidated /f_i.liga nancial statements of the Group.
Signi/f_i.liga cant Accounting Policies Applicable to Current and Prior Year:
Subsidiaries and business combinations
Subsidiaries are all entities (including structured entities) over which the
Group has control. The Group controls an entity where the Group is exposed
to, or has rights to, variable returns from its involvement with the entity and
has the ability to a/f_f.liga ect those returns through its power to direct the activi-
ties of the entity.
Subsidiaries are fully consolidated from the date on which the Group
obtained the control. Subsidiaries are deconsolidated from the date when
the Group ceases control over such subsidiaries.
The acquisition method of accounting is used by the Group to account for
business combinations.
Inter-company transactions, balances and unrealised gains on transactions
between group entities are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the transferred
asset. Accounting policies of subsidiaries have been changed where neces-
sary to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are
shown separately in the consolidated SOI, SOCI, SFP and SCE, respectively.
Associates
Associates are all entities over which the Group has signi/f_i.liga cant in/f_l.liga uence but
have neither control nor joint control. This is generally the case where the
Group holds between 20% and 50% of the voting rights. Investments in asso-
ciates are accounted for using the equity method, after being initially rec-
ognised at cost.
Joint Arrangements
Under IFRS 11 Joint Arrangements, investments in joint arrangements are
classi/f_i.liga ed as either joint operations or joint ventures (see Note 10). The clas-
si/f_i.liga cation depends on the contractual rights and obligations of each inves-
tor, rather than the legal structure of the joint arrangement. The Group has
investments only in joint ventures during the current reporting period. Joint
ventures are accounted for using the equity method, after being initially rec-
ognised at cost.
Equity Method
Under the equity method of accounting, the investment in an associate or a
joint venture is initially recognised at cost and adjusted thereafter to recog-
nise the Group’s share of the post-acquisition pro/f_i.liga ts or losses of the investee
in SOI, and the Group’s share of movements in other comprehensive income
of the investee in SOCI. Dividends received or receivable from an associate
or a joint venture are recognised as a reduction in the carrying amount of the
investment. Where the Group’s share of losses in an associate or a joint ven-
ture equals or exceeds its interest in the associate or joint venture, including
any other unsecured long-term receivables, the Group does not recognise
further losses, unless it has incurred obligations or made payments on behalf
of the associate or joint venture. Unrealised gains on transactions between
the Group and its associates and joint ventures are eliminated to the extent
of the Group’s interest in these entities. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the asset(s)
transferred. Adjustments are made where necessary to make an equity-
accounted investee’s accounting policies conform to those of the Group
before such investee’s /f_i.liga nancial statements are used by the Group in applying
the equity method. The carrying amount of equity-accounted investments
is tested for impairment if indicators exist that the carrying value as at the
reporting date may not be recovered.
Changes in Ownership Interest
The Group treats transactions with non-controlling interests that do not
result in a loss of control as ‘transactions with equity owners in their capacity
as owners’. A change in ownership interest results in an adjustment between
the carrying amounts of the controlling and non-controlling interests to
re/f_l.liga ect their relative interests in the subsidiary. Any di/f_f.liga erence between the
non-controlling interests balance and any consideration paid or received is
recognised within equity attributable to owners of the Group.
When the Group ceases to consolidate or equity account for an invest-
ment because of a loss of control, joint control or signi/f_i.liga cant in/f_l.liga uence, any
retained interest in the investee is remeasured to its fair value, with the
change in carrying amount recognised in SOI. This fair value becomes the
initial carrying amount for the purposes of subsequently accounting for the
retained interest in an associate, joint venture or /f_i.liga nancial asset. In addi-
tion, any amounts previously recognised in other comprehensive income in
respect of that investee are accounted for as if the Group had directly dis-
posed of the related assets or liabilities. This may mean that amounts previ-
ously recognised in other comprehensive income are reclassi/f_i.liga ed to SOI. If
the ownership interest in a joint venture or an associate is reduced but joint
control or signi/f_i.liga cant in/f_l.liga uence is retained, only a proportionate share of the
amounts previously recognised in other comprehensive income are reclassi-
/f_i.liga ed to SOI.
Foreign Currency Transactions
The Group applies IAS 21 The E/f_f.liga ects of Changes in Foreign Exchange Rates
to all foreign currency transactions.
Functional and Presentation Currency
Items included in the /f_i.liga nancial statements of each of the Group’s entities are
measured using the currency of the primary economic environment in which
the entity operates (‘the functional currency’).
The consolidated /f_i.liga nancial statements’ functional and presentation cur-
rency is SEK.
Transactions and Balances
Foreign currency transactions are translated into the functional currency
using the exchange rates at the date of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions, and from
the translation of monetary assets and liabilities denominated in foreign cur-
rencies at year end exchange rates, are generally recognised in pro/f_i.liga t or loss.
Such gains and losses are deferred in equity if they relate to qualifying cash
/f_l.liga ow hedges, qualifying net investment hedges or are attributable to part of
the net investment in a foreign operation. Non-monetary items that are mea-
sured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
Translation of the Financial Statements of Foreign Operations
The /f_i.liga nancial performance and /f_i.liga nancial position of foreign operations (none
of which has the currency of a hyperin/f_l.liga ationary economy) that have a func-
tional currency di/f_f.liga erent from the presentation currency are translated into
the Group’s presentation currency as follows:
• Assets and liabilities in foreign operations, including goodwill and fair
value adjustments arising on the acquisition of a foreign operation are
translated at the closing rate at the SFP date.
• Income and expenses are translated at the average rates, which is deemed
a reasonable approximation of the rates prevailing at the transaction
dates.
• All resulting exchange di/f_f.liga erences are recognised in other comprehensive
income.
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On consolidation, exchange di/f_f.liga erences arising from the translation of any
net investment in foreign operations, borrowings and other /f_i.liga nancial instru-
ments designated as hedging instruments of such investments, are rec-
ognised in other comprehensive income. When a foreign operation is sold or
any borrowings forming part of the net investment are repaid, the associated
exchange di/f_f.liga erences are reclassi/f_i.liga ed to SOI.
Business Combinations
The acquisition method of accounting is used to account for all business
combinations, regardless of whether equity instruments or other assets are
acquired. The consideration transferred for the acquisition of a subsidiary
comprises the:
• fair values of the assets transferred;
• liabilities incurred to the former owner(s) of the acquired business;
• equity interests issued by the Group;
• fair value of any asset or liability resulting from a contingent consideration
arrangement; and
• fair value of any pre-existing equity interest in the subsidiary.
Identi/f_i.liga able assets acquired, liabilities and contingent liabilities assumed in a
business combination are, with limited exceptions, measured initially at their
fair values at the acquisition date.
The Group recognises any non-controlling interest in the acquired entity
on an acquisition-by-acquisition basis at the non-controlling interest’s pro-
portionate share of the acquired entity’s net identi/f_i.liga able assets.
Acquisition-related costs are expensed as incurred. The excess of the:
• consideration transferred;
• amount of any non-controlling interest in the acquired entity; and
• acquisition-date fair value of any previous equity interest in the acquired
entity over the fair value of the net identi/f_i.liga able assets acquired is recorded
as goodwill. If those amounts are less than the fair value of the net identi/f_i.liga -
able assets of the business acquired, the di/f_f.liga erence is recognised directly
in SOI as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts
payable in the future are discounted to their present value as at the date of
exchange. The discount rate used is the Group’s incremental borrowing rate,
being the rate at which a similar borrowing could be obtained from an inde-
pendent /f_i.liga nancier under comparable terms and conditions.
Contingent consideration is classi/f_i.liga ed either as equity or a /f_i.liga nancial liabil-
ity. Amounts classi/f_i.liga ed as a /f_i.liga nancial liability are subsequently remeasured to
fair value, with changes in fair value recognised in the SOI.
Goodwill
Goodwill is measured as described above and included in intangible assets.
The Group subsequently measures and accounts for goodwill in accor-
dance with IAS 38 Intangible Assets and tests goodwill for impairment in
accordance with paragraphs 65-108 of IAS 36 Impairment of Assets. The
Cash-Generating Units (“CGUs”) to which goodwill is allocated are identi-
/f_i.liga ed at markets level where goodwill is monitored for internal management
purposes.
Gains and losses upon disposal of an entity include the carrying amount of
goodwill relating to the entity sold.
Capitalised Software
Expenditures associated with maintaining software programs are expensed
as incurred. Development costs attributable to the design and testing of soft-
ware products under the Group’s control are capitalised in accordance with
paragraphs 51-67 of IAS 38 Intangible Assets.
Directly attributable costs include internal sta/f_f.liga costs and external con-
sultancy costs. Borrowing costs are included in the cost of quali/f_i.liga ed /f_i.liga xed
assets. Additional expenditures for previously developed software, etc. are
recognised as an asset if they increase the future economic bene/f_i.liga ts of the
speci/f_i.liga c asset to which they are attributable, e.g., by improving or extending a
computer program’s functionality beyond its original use and estimated use-
ful life.
IT development costs that are recognised as intangible assets are amor-
tised using the straight-line method over their useful lives (3–5 years). Use-
ful life is reassessed annually. The asset is measured at cost less accumulated
amortisation and impairment losses
Client Servicing Assets
Client servicing assets represent the legal rights to servicing portfolios of
non-performing loans. These assets are recognised at fair value at the acqui-
sition date. Client servicing assets are usually amortised using the straight-
line method over the contractual life (5-10 years) if assets under management
are expected to remain stable or reduce in a linear manner. In case they have
an accelerated diminishing pro/f_i.liga le in tail, then diminishing balance method
ranging from 10% to 30% is applied to match the pro/f_i.liga le of the assets being
serviced. Client servicing assets are measured at cost less accumulated
amortisation and impairment losses.
Digital Servicing Platform
Digital Servicing Platform is an acquired intangible asset recognised at fair
value. The platform includes arti/f_i.liga cial intelligence and machine learning com-
ponent. The platform has a decision engine that automates collection ser-
vices and is expected to improve over time. The platform is assessed to have
a useful life up to 10 years and is amortised accordingly. Such assets are also
tested for impairment annually.
Property, Plant and Equipment
Property, plant and equipment are initially recognised at fair value. The
Group applies cost model in accordance with IAS 16 Property, Plant and
Equipment.
Depreciation is booked on a straight-line basis over an asset’s anticipated
useful life (3–5 years). Useful life is reassessed annually.
Right of Use Assets
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made on or before the lease commencement date less
any lease incentives received;
• any initial direct costs, and
• restoration costs.
Impairment
Goodwill and Digital Servicing Platform are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they
might be impaired.
Other assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised at the amount by which the asset’s carry-
ing amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest level for
which there are separately identi/f_i.liga able cash in/f_l.liga ows which are largely inde-
pendent of the cash in/f_l.liga ows from CGUs or groups of CGUs. Non-/f_i.liga nan-
cial assets, other than Goodwill, that were previously written down due to
impairment are reviewed for possible reversal of the impairment at the end of
each reporting period.
Financial assets
Classi/f_i.liga cation
The Group classi/f_i.liga es its /f_i.liga nancial assets in the following measurement
categories:
• those to be measured subsequently at fair value through pro/f_i.liga t or loss
(“ F V PL”); an d
• those to be measured at amortised cost.
The classi/f_i.liga cation depends on the Group’s business model for managing the
/f_i.liga nancial assets and the contractual terms of the cash /f_l.liga ows.
For assets that are measured at fair value, gains and losses on subsequent
remeasurements are recognised in the SOI.
Recognition and derecognition
Financial assets are recognised on trade date, being the date on which the
Group commits to purchase or sell the asset. Financial assets are
derecognised when the rights to receive cash /f_l.liga ows from the /f_i.liga nancial
assets have expired or have been transferred and the Group has transferred
substantially all the risks and rewards of ownership.
Measurement
At initial recognition, the Group measures a /f_i.liga nancial asset at its fair value
plus, in the case of a /f_i.liga nancial asset not at FVPL, transaction costs that are
directly attributable to the acquisition of the /f_i.liga nancial asset. Transaction
costs attributable to /f_i.liga nancial assets at FVPL are expensed in SOI.
Subsequent measurement of debt instruments depends on the Group’s
business model for managing the asset and the cash /f_l.liga ow characteristics of
the asset. The Group uses following measurement categories to classify its
debt instruments:
• Amortised Cost: Assets that are managed under ‘hold to collect’ business
model where the underlying cash /f_l.liga ows represent solely payments of prin-
cipal and interest, are measured at amortised cost. Interest income from
these /f_i.liga nancial assets is included in ‘Finance Income’ using the EIR (E/f_f.liga ec-
tive Interest Rate) method if the assets relate to treasury operations, other-
wise it is recognised within ‘Income’ as it is part of the ‘Investing’ business
segment. Any gain or loss on such instruments is recognised directly in
the SOI in ‘Other Operating Items’ if such gain or loss relates to ‘Investing’
business segment, or in ‘Net Financial Expenses’ if such gain or loss relates
to treasury operations.
• FVPL: Assets that do not meet the criteria for amortised cost are mea-
sured at FVPL. A gain or loss on a debt instrument that is subsequently
measured at FVPL is recognised in the SOI similar to the aforementioned
Amortised Cost description.
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Portfolio Investments
Portfolio Investments (“PIs”) consist of portfolios of delinquent receivables
purchased at prices signi/f_i.liga cantly below the nominal outstanding balance.
In accordance with IFRS 9, these are classi/f_i.liga ed as Purchased or Originated
Credit Impaired (“POCI”). PIs usually refer to receivables from private indi-
viduals and companies and are either secured or unsecured receivables.
They are initially recognised at fair value and subsequently measured at
credit-adjusted EIR amortised cost method. The EIR of a POCI loan portfo-
lio would be the discount rate that equates the present value of the expected
cash /f_l.liga ows with the purchase price of the portfolio. Expected cash /f_l.liga ows
are measured on gross basis including the expected loan repayments,
reminder fees, collection fees and late interest payments, based on a prob-
ability assessment, that are expected to be received from a loan portfolio’s
customers.
The initial lifetime Expected Credit Losses (“ECL”) are included in the esti-
mated cash /f_l.liga ows when calculating the credit-adjusted EIR and are implied
at initial recognition. Cash /f_l.liga ow projections are monitored over the course of
the year and updated based on, among other things, lifetime performance,
servicer outlook, regulatory and other relevant macro environment data.
Cash /f_l.liga ow projections are made at the segment level (portfolio or
sub-portfolio) assuming each segment to be relatively homogeneous. Any
subsequent changes in lifetime ECL, both positive and negative, are rec-
ognised in the SOI as credit gains and losses. Credit gains and losses arise
due to timing (accelerated or decelerated collections) and quantum (over or
under performance) di/f_f.liga erences when compared to the original forecast.
Interest income from PIs is recognised under the credit-adjusted EIR
method in the SOI.
Upon sales of PIs, sale proceeds are reported in ‘Other Income’.
ECLs for other /f_i.liga nancial assets
The Group assesses on a forward-looking basis the ECLs reserve associ-
ated with its debt instruments carried at amortised cost. For trade receiv-
ables, the Group applies the simpli/f_i.liga ed approach permitted under IFRS 9,
which requires lifetime ECLs to be recognised from initial recognition of the
receivables.
Recoverability on trade receivables are initially assessed on an item-by-
item basis. If receivables older than 90 days are not provided for, a secondary
assessment is made to con/f_i.liga rm that the basis for not providing is reason-
able based on judgements that consider payment promises from clients,
prior experience or knowledge of concerned clients, amounts being settled
on payment plans and amounts actively being collected by operations from
clients.
Derivatives and Hedge Accounting
Derivatives are initially recognised at fair value on the date a derivative con-
tract is entered into, and they are subsequently remeasured to their fair value
at the end of each reporting period.
The accounting for subsequent changes in fair value depends on whether
the derivative is designated as a hedging instrument and, if so, the nature of
the item being hedged.
The Group applies hedging accounting on hedges of its net investments in
foreign operations (net assets). Such investments are hedged through loans
in foreign currency or forward exchange contracts.
Any gain or loss on an hedging instrument relating to the e/f_f.liga ective portion of
the hedge is recognised in other comprehensive income and accumulated in
reserves in equity. Any gain or loss relating to the ine/f_f.liga ective portion is rec-
ognised immediately in SOI within ‘Net Financial Expenses’ line. Hedging
instruments’ e/f_f.liga ective gains and losses accumulated in equity are reclassi/f_i.liga ed
to SOI when foreign operation(s) are partially or wholly derecognised (sold or
liquidated).
Servicing Outlays
As part of servicing operations, the Group incurs various outlays for court
fees, legal representation, enforcement authorities, etc. The Group mainly
incur these costs in the capacity of agent, principal or /f_i.liga duciary.
• Agent: Costs incurred to collect outstanding debts and subsequent col-
lections are fully transferred to clients. The Group bears no risk other than
a credit risk to collect these costs from clients, and such costs are netted
within ‘Other Operating Items’ in the SOI. The Group is only entitled to a
commission fee for carrying out these tasks on behalf of its clients.
• Principal: Costs incurred to collect outstanding debts and subsequent
collections are not fully transferred to clients. The Group bears the risks
of incurring such outlays with an expectation of retaining a signi/f_i.liga cant fee
from subsequent collection from customers. In addition, in certain cases,
the Group has agreements with its clients where any expenses that cannot
be collected from customers are instead refunded by the clients - costs
under these arrangements are also assessed as acting in the capacity of a
principal. Therefore, the Group bears full risk of this servicing activity and
will be remunerated mainly from the subsequent collections. Such costs
are included within ‘Direct Costs’ line and any subsequent recoveries from
clients or customers are included with the ‘Income’ line in the SOI.
• Fiduciary: The Group has access to certain clients’ bank accounts to
incur costs to collect outstanding debts. The Group only acts in a /f_i.liga du-
ciary capacity and carries out these tasks in compliance with a prede/f_i.liga ned
arrangement with the clients. These costs are not recognised in the SOI.
The amount that is expected to be recovered from a solvent counterparty is
recognised as an asset (see Note 15). The legal outlays are recognised at their
fair value, which is the amount that can be claimed, unless they contain sig-
ni/f_i.liga cant /f_i.liga nancing components. Legal outlays are subsequently measured at
amortised cost.
Fiduciary Assets / Liabilities
Client funds, which are reported as assets and liabilities in the balance sheet,
represent cash received on collection of a speci/f_i.liga c debt on behalf of a client
and payable to the client within a speci/f_i.liga ed period.
Cash and Cash Equivalents
Cash and Cash Equivalents consist of cash in hand, deposits held at call with
/f_i.liga nancial institutions, other highly liquid short-term investments with origi-
nal maturities of three months or less that are readily convertible to known
amounts of cash and are subject to an insigni/f_i.liga cant risk of changes in value, as
well as bank overdrafts.
Certain bank accounts are restricted, where the Group does not have
unrestricted right to withdraw cash. These are referred to as ‘Restricted Bank
Accounts’.
Borrowings
Borrowings include bond loans and liabilities to /f_i.liga nancial institutions - these
are initially recognised at fair value, net of transaction costs incurred. They
are subsequently measured at amortised cost. Any di/f_f.liga erence between
the proceeds (net of transaction costs) and the redemption amount is rec-
ognised in the SOI over the contractual period of the borrowings using the
EIR method. Fees paid on the establishment of a loan facility are recognised
as transaction costs to the extent that it is probable that some or all of the
facility will be drawn down. In such case, these fees are deferred until the
draw-down occurs. To the extent that it is not probable that some or all of
the facility will be drawn down, these fees are capitalised as a prepayment
for liquidity services and amortised over the period of the facility to which it
relates. Borrowings are removed from the SFP when the obligation speci/f_i.liga ed
in the contract is discharged, cancelled, extinguished or expires.
Leasing
Assets and liabilities arising from a leasing contract are initially measured
at present value, except for short-term leases with a contractual term of 12
months or less and leases with a value of SEK 55,000 or less. Lease liabilities
include the net present value of the following lease payments:
• /f_i.liga xed payments (including in-substance /f_i.liga xed payments), less any lease
incentives receivable;
• variable lease payments that are based on an index or a rate, initially mea-
sured using the index;
• or rate as at the commencement date;
• amounts expected to be payable by the Group under residual value
guarantees;
• the exercise price of a purchase option if the Group is reasonably certain
to exercise that option; and
• payments of penalties for terminating the lease, if the lease term re/f_l.liga ects
the Group exercising that option.
Lease payments to be made under reasonably certain extension options are
also included in the measurement of the liability.
Lease payments are allocated between principal and /f_i.liga nance cost. The
/f_i.liga nance cost is charged to the SOI over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for
each period.
Taxes
Tax expense or income for the period is the tax payable or receivable on the
current repor ing period’s taxable income or loss, based on the applicable
income tax rate for each jurisdiction, adjusted by movements in deferred tax
assets and liabilities attribu able to temporary di/f_f.liga erences and to unused tax
losses.
The current income tax charge is calculated on the basis of the tax laws
enacted or substantively enacted at the end of the reporting period in the
countries where an entity and its subsidiaries operate and generate taxable
income.
Management periodically evaluate positions taken in tax returns with
respect to situations in which applicable tax regulation is subject to inter-
pretation and consider whether it is probable that a taxation authority will
accept an uncertain tax treatment. The Group measures its tax balances
based on either the most likely amount or the expected value, depend-
ing on which method provides a better prediction of the resolution of the
uncertainty.
Deferred tax assets and / or liabilities are accounted for in accordance
with IAS 12 Income Taxes. Deferred tax assets and liabilities are o/f_f.liga set where
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there is a legally enforceable right to o/f_f.liga set current tax assets and liabilities
and where the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are o/f_f.liga set where an entity has a legally
enforceable right to o/f_f.liga set and intends either to settle on a net basis, or to
realise the asset and settle the liability simultaneously.
Current and deferred taxes are recognised in the stand alone and consol-
idated SOIs unless they relate to items recognised directly in other compre-
hensive income or directly in equity, in which case the taxes are recognised in
other comprehensive income or in equity correspondingly.
Provisions
Provisions are recognised when the Group has a legal or constructive obli-
gation as a result of a past event, it is probable that an out/f_l.liga ow of resources
will be required to settle the obligation, and such amount can be reliably esti-
mated. Provisions are not recognised for future losses.
Provisions are measured at the present value of management’s best esti-
mate of the expenditure required to settle the present obligation at the end
of the reporting period. The discount rate used to determine the present
value is a pre-tax rate that re/f_l.liga ects current market assessments of the time
value of money and the risks speci/f_i.liga c to the liability. The increase in the provi-
sion due to the passage of time is recognised as interest expense.
Employee bene/f_i.liga ts
Short-term bene/f_i.liga ts
Liabilities for wages and salaries, including non-monetary bene/f_i.liga ts, annual
leave and accumulating sick leave that are expected to be settled wholly
within 12 months after the end of the period in which the employees render
the related service are recognised in respect of employees’ services up to the
end of the reporting period and are measured at the amounts expected to be
paid when the liabilities are settled. The liabilities are presented as current
other liabilities in the SFP.
Long-term obligation
The Group grants certain employees long-term bene/f_i.liga ts with a three-year
vesting period. Eligible employees may be granted up to a certain percentage
of their annual base salary if certain performance conditions are met at the
end of the vesting period. The liabilities are presented as non-current liabili-
ties in the SFP. These obligations are therefore measured as the present value
of expected future payments to be made in respect of services provided by
employees up to the end of the reporting period.
Post-employment bene/f_i.liga ts
The Group operates various post-employment schemes, including both
de/f_i.liga ned bene/f_i.liga t and de/f_i.liga ned contribution pension plans.
The liability or asset recognised in the SFP in respect of de/f_i.liga ned bene-
/f_i.liga t pension plans is the present value of the de/f_i.liga ned bene/f_i.liga t obligation at the
end of the reporting period less the fair value of plan assets. The de/f_i.liga ned
bene/f_i.liga t obligation is calculated annually by independent actuaries using the
projected unit credit method. The present value of the de/f_i.liga ned bene/f_i.liga t obli-
gation is determined by discounting the estimated future cash out/f_l.liga ows using
interest rates of high-quality corporate bonds that are denominated in the
currency in which the bene/f_i.liga ts will be paid, and that have terms approximat-
ing to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net
balance of the de/f_i.liga ned bene/f_i.liga t obligation and the fair value of plan assets.
This cost is included in personnel expenses in SOI.
Remeasurement gains and losses arising from experience adjustments
and changes in actuarial assumptions are recognised in the period in which
they occur, directly in other comprehensive income. They are included in the
SOCI and the SCE.
Changes in the present value of the de/f_i.liga ned bene/f_i.liga t obligation resulting
from plan amendments or curtailments are recognised immediately in the
SOI as past service costs.
For de/f_i.liga ned contribution plans, the Group pays contributions to publicly
or privately administered pension insurance plans on a mandatory, contrac-
tual or voluntary basis. The Group has no further payment obligations once
the contributions have been paid. The contributions are recognised as per-
sonnel expenses when they are due. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in the future payments
is available.
Multi-employer pension plan
The Group participates in a multi-employer pension plans for speci/f_i.liga ed
Swedish employees. According to the SFRB, UFR 10, the Group accounts for
its participation in the plan as if it were a de/f_i.liga ned contribution plan as su/f_f_i.liga -
cient information on its proportional share of plan assets, liabilities and costs
are not available to the Group. There is no contractual agreement that states
how surpluses and de/f_i.liga cits in the plan are to be distributed among plan par-
ticipants. The premium is individually calculated, depending on salary, pre-
viously vested pension and anticipated remaining term of employment. The
Group pays a regular premium amount to Alecta (Swedish insurance com-
pany) which manages these multi-employer Swedish pension plans.
Share-based payments
Share-based compensation bene/f_i.liga ts are provided to employees via the
Group Long-Term Incentive Plan (“LTIP”), under which eligible employees
may be granted up to a certain percentage of their annual base salary, worth
of fully paid ordinary shares in the Company without cash consideration.
The fair value of shares is recognised as personnel expenses, with a corre-
sponding increase in equity. The total amount to be expensed is determined
by reference to the fair value of the shares granted which:
• includes any market performance conditions (e.g., total shareholders
return);
• excludes the impact of any service or non-market performance vesting
conditions (e.g., Earnings Per Share targets and employees remaining in
service over a speci/f_i.liga ed time period); and
• includes the impact of any non-vesting conditions (e.g., the requirement
for employees to hold shares for a speci/f_i.liga c period of time).
The total expense is recognised over the vesting period, which is the period
over which all of the speci/f_i.liga ed vesting conditions are to be satis/f_i.liga ed. At the
end of each period, the Group revises its estimates of the number of shares
that are expected to vest based on the non-market vesting and service con-
ditions. It recognises the impact of the revision to original estimates, if any, in
pro/f_i.liga t or loss, with a corresponding adjustment to equity.
The LTIP includes a net settlement feature under which the shares neces-
sary to settle an employee’s tax obligations are withheld by the Group which
transfers amount of taxes associated with a share-based payment to the tax
authority on the employee’s behalf.
Treasury shares
The Group repurchases its own shares and holds them in treasury, mainly to
transfer these shares to speci/f_i.liga ed employees as part of share-based remu-
neration plan:
• On initial purchase, the amount paid for the treasury shares is recognised
in Treasury Shares Reserve account as a negative balance within the equity
balance;
• No gain or loss is recognised in the SOI on the purchase, sale, issue or can-
cellation of own equity instruments. The acquisition and subsequent
resale of treasury shares are transactions with the Group’s owners, rather
than a commercial transaction resulting in gain or loss to the Group. In
case the shares are transferred to employees, the cost for such shares is
reclassi/f_i.liga ed to Retained Earnings account within the equity balance;
• Consideration paid or received for the purchase or sale of an entity’s own
equity instruments are recognised directly in equity. The net di/f_f.liga erence
between the purchase and sale price is reclassi/f_i.liga ed to Retained Earnings
within the equity balance; and
• On cancellation of treasury shares, the purchase price is reclassi/f_i.liga ed to
Retained Earnings within the equity balance (see Note 24).
Dividends
Provision is made for the amount of any dividend declared, being appropri-
ately authorised and no longer at the discretion of the entity, at or before the
end of the reporting period but not distributed at the end of the reporting
period.
Revenue recognition
The Group applies IFRS 15 “Revenue from Contracts with Customers” for
income earned from the Servicing business.
Income consisting of commissions and collection fees is recognised on
collection of the claim. Subscription income is recognised proportionately
over the term of the underlying service contracts, which is usually one year.
Most servicing income is recognised when the relative performance obli-
gation is ful/f_i.liga lled (point-in-time recognition). Income from property sales is
recognised when the buyer gains access to the property.
Certain servicing contracts entitle the Group to additional contingent
income if certain parameters are not ful/f_i.liga lled, e.g., a certain minimum level of
non-performing loans are not transferred to the Group in a speci/f_i.liga ed period.
In this case, the Group recognises income applying variable consideration
guidance. Total contingent income is estimated over the remaining contrac-
tual life and income is recognised to the extent that it is highly unlikely to
reverse such income in future (see Note 4).
Segment reporting
The Group applies IFRS 8 Operating Segments. Operating segments are
reported in a manner consistent with the internal reporting provided to the
Chief Operating Decision Maker (CODM). The Group CEO has been identi-
/f_i.liga ed as the CODM.
The Group has identi/f_i.liga ed two business segments: Servicing and Invest-
ing. These operating segments are further sub-divided into four geographi-
cal segments:
• Northern Markets (4 markets): ‘Norway’, ‘Sweden’, ‘Denmark’ and ‘Finland’
• Middle Markets (5 markets): ‘Austria & Germany’, ‘Belgium & Netherlands’,
‘Switzerland’, ‘France’ and ‘UK & Ireland’
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• Southern Markets (4 markets): ‘Portugal’, ‘Spain’, ‘Italy’ and ‘Greece’
• Easternl Markets (4 markets): ‘Czech Republic’, ‘Slovakia’, ‘Hungary’ and
‘Poland’
The Parent’s accounting principles
The Parent has prepared the Annual Report according to the Swedish
Annual Accounts Act (1995:1554) and IFRS® redovisningsstandarder (RFR)
2 Accounting for Legal Entities form the Swedish Financial Reporting Board.
IFRS® redovisningsstandarder (RFR) 2 means that the Parent, in the annual
report of the legal entity, must apply all EU-endorsed IFRS and statements
as far as possible with the framework of the Swedish Annual Accounts Act
and taking into account the connection between reporting and taxation. The
recommendation speci/f_i.liga es exemptions or additions relative to EU-adopted
IFRS.
The accounting principles for the Parent as stated below have been
applied consistently to all periods presented in the Parent’s /f_i.liga nancial
statements.
Subsidiaries, associated companies and joint ventures
Shares in subsidiaries, associated companies and joint ventures are rec-
ognised by the Parent at cost (including transaction costs). They are sub-
sequently measured under Equity Method (cost plus income accrued less
income received). Income may include dividend, interest, principal repay-
ments, etc. Impairment is assessed on a regular basis and is recognised when
it is highly likely that the investment will not be recovered in full.
Group contributions and shareholders’ contributions to legal entities
The Parent reports group contributions and shareholders’ contributions
in accordance with the statements of RFR 2 from the Swedish Financial
Reporting Board. Group contributions paid are recognised as sharehold-
ers’ contributions. Shareholders’ contributions are recognised directly in
the shareholders’ equity of the receiving entity and capitalised in the shares
and participating interest of the contributor, to the extent impairment is not
required.
Note 3 Critical accounting judgements and key sources of
estimation uncertainty:
The preparation of the /f_i.liga nancial statements in accordance with EU-adopted
IFRSs requires the use of certain critical accounting judgements, estimates
and assumptions which could in/f_l.liga uence the value of assets and liabilities as
well as income and costs reported in the consolidated SFP and SOI respec-
tively, as well as the disclosures included in the notes to the consolidated
/f_i.liga nancial statements in relation to potential assets and liabilities existing as of
the date the consolidated /f_i.liga nancial statements were authorised for issue.
Judgements involve decisions on the classi/f_i.liga cation of assets or liabilities
and on the use of accounting methods or valuation techniques by manage-
ment which can have a signi/f_i.liga cant in/f_l.liga uence on the ultimate outcome.
Estimates and underlying assumptions are based on historical experience
and other factors that are considered to be relevant. The resulting accounting
estimates could di/f_f.liga er from the related actual results. Estimates and assump-
tions are reviewed periodically, and the e/f_f.liga ects of each change are re/f_l.liga ected
in the consolidated SOI in the period in which the change occurs.
Critical Judgements
The following are the critical judgements, apart from those involving estima-
tions, that management have made in the process of applying the Group’s
accounting policies and that have the most signi/f_i.liga cant e/f_f.liga ect on the amounts
recognised in the /f_i.liga nancial statements:
Control Assessment
The Group regularly assesses control over its investees to determine whether
such investees should be consolidated in the Group’s /f_i.liga nancial statements.
The assessment includes analysis of economic, operational and governance
factors which may or may not be aligned with the legal structure of such
investments. Signi/f_i.liga cant judgements are required in control assessment,
especially for investments where the relevant factors are not fully aligned
with the underlying legal structure. The control assessment especially
focuses on the Group’s voting rights or decision making power stipulated in
respective contractual agreements.
• Since 2006, the Group has operations in Poland structured through invest-
ment funds to comply with the local regulation. The investment funds pur-
chase and hold portfolios. The Group has control over these funds and
thus the funds are consolidated in the Group’s /f_i.liga nancial statements.
• Since 2018, the Group invests in various entities either via equity interest
or through note holding. These investments are assessed as joint ventures
as the Group shares joint control with the other investors (see Note 10).
• In 2024, the Group completed the sale of a material portion of its invest-
ment portfolios to a/f_f_i.liga liates of Cerberus Capital Management L.P (“Cer-
berus”) with the Group holding a 35% of ownership in Orange European
Holdings BV, which is the purchasing entity of these portfolios. As the
Group has signi/f_i.liga cant in/f_l.liga uence over Orange European Holdings BV, the
latter is assessed to be an associate for the Group (see Note 10).
Useful Lives of Intangible Assets (excluding Goodwill)
The useful lives of intangible assets involve management judgement. The
residual values and amortization method are assessed on an annual basis.
These assets are exposed to impairment risk, hence, are tested annually to
ensure that carrying values are not misstated.
Estimates and Key Source of Estimation Uncertainty
Key assumptions concerning the future, and other key sources of estima-
tion uncertainty at the reporting period may have a signi/f_i.liga cant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within
the next /f_i.liga nancial year.
Valuation of Goodwill:
Goodwill is subject to an annual impairment test. The calculation involves
discounting future cash /f_l.liga ows at the Group’s weighted average cost of capital
(“WACC”) to arrive at recoverable amount which is then compared to good-
will balance. The underlying cash /f_l.liga ows are based on budgets which are pre-
pared using a bottom-up approach incorporating all operating jurisdictions’
feedback and key targets to meet annual milestones, taking into consider-
ation of the increased measurement uncertainty due to challenging mac-
ro-economic environment and the Group’s evolving business strategies. As
such, the impairment test involves a signi/f_i.liga cant level of estimation.
Portfolio Investments:
The measurement of PIs is based on the Group’s projection of future cash
/f_l.liga ows from the acquired portfolios incorporating factors relating to mac-
ro-economic environments, types of debtors and loans (e.g., secures / unse-
cured). Future projections involve the use of estimates and assumptions that
are periodically reviewed. Any changes in the estimated cash /f_l.liga ows are ulti-
mately authorised by a central revaluation committee.
Valuation of Deferred Tax Assets:
The valuation of deferred tax assets is based on forecasted results which
depend upon factors that could vary over time and could have signi/f_i.liga cant
e/f_f.liga ects on the valuation of deferred tax assets. This involves the use of man-
agement judgement and estimates.
Macro-economic Environment
The current macro-economic environment creates signi/f_i.liga cant measurement
uncertainty relating to key assumptions, including WACC, in/f_l.liga ation, eco-
nomic output growth, development of Non-Performing Loans (“NPLs”) vol-
umes, future performance of NPLs and long-term growth rates. Signi/f_i.liga cant
changes in expectations, such as a protracted recession or in/f_l.liga ation rebound-
ing, could result in material changes to these assumptions. Consequently,
revisions to these metrics could materially impact future valuation amounts
reported on the SFP.
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Note 4 Income
Continuing operations
Group Parent
SEK M 2024 2023 2024 2023
Servicing Income
Collection Services 11,655 10,255 - -
Sale of Properties 66 856 - -
Subscription Income 68 58 - -
Other Servicing Income 2 2 - -
Total Servicing Income 11,791 11,171 - -
Interest Income
Portfolio Investments Interest
Income
4,608 4,908 - -
Other interest income 485 324 - -
Total Interest Income 5,093 5,232 - -
Other Income
Income from Group Companies - - 1,335 1,617
Other 1,149 1,302 - -
Total Other Income from
continuing operations
1,149 1,302 1,335 1,617
Total 18,033 17,705 1,335 1,617
See note 27 for further segmental information on Revenues.
Note 5 Costs
Continuing operations
Direct Costs Indirect Costs Total
SEK M 2024 2023 2024 2023 2024 2023
GROUP EXPENSES
Personnel Expenses
Salaries 4,121 3,877 1,742 1,818 5,863 5,695
Social Security Expenses 609 561 258 291 867 852
Pension Expenses 185 165 64 65 249 230
Others 578 339 176 179 754 518
Total Personnel Expenses 5,493 4,942 2,240 2,353 7,733 7,295
Depreciation and Amortisation
Property, Plant and Equipment 105 99 - - 105 99
Right-of-Use Assets 226 269 - - 226 269
Client Servicing Contracts 684 863 - - 684 863
Software and Other Intangible Assets 293 305 - - 293 305
Total Depreciation and Amortisation 1,308 1,536 - - 1,308 1,536
Other Expenses
Third Party Service Providers 484 246 1,132 1,368 1,616 1,614
Legal Expenses 1,170 1,343 - - 1,170 1,343
IT Costs - - 1,016 815 1,016 815
O/f_f_i.liga ce Costs - - 232 231 232 231
Postage Expenses 408 401 - - 408 401
Real Estate Expenses 393 305 - - 393 305
Cost Saving Program - - 99 526 99 526
Others 344 274 413 582 757 856
Total Other Expenses 2,799 2,569 2,892 3,522 5,691 6,091
Cost of Sales
Costs of Property Holdings 478 362 - - 478 362
Total Cost of Sales 478 362 - - 478 362
TOTAL GROUP EXPENSES 10,078 9,409 5,132 5,875 15,210 15,284
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Direct Costs Indirect Costs Total
SEK M 2024 2023 2024 2023 2024 2023
PARENT EXPENSES
Personnel Expenses
Salaries - - 1515415154 185 154 185
Social Security Expenses - - 59 58 59 58
Pension Expenses - - 29 26 29 26
Others - - 13 - 13 -
Total Personnel Expenses - - 255 269 255 269
Depreciation and Amortisation and impairment
Property, Plant and Equipment 2 4 - - 2 4
Right-of-Use Assets 7 1 - - 7 1
Software and Other Intangible Assets 120 138 - 6 120 144
Impairment of Software and Other Intangible Assets 410 - - - 410 -
Total Depreciation and Amortisation 539 143 - 6 539 149
Other Expenses
Third Party Service Providers - - 503 590 503 590
IT Costs - - 529 264 529 264
O/f_f_i.liga ce Costs - - 5 11 5 11
Cost Saving Program - - 16 288 16 288
Others 14 143 305 686 319 829
Total Other Expenses 14 143 1,358 1,839 1,372 1,982
TOTAL PARENT EXPENSES 553 286 1,613 2,114 2,166 2,400
Statutory Audit and Advisory Service fees performed by Deloitte are as
follows:
Group Parent Company
SEK M 2024 2023 2024 2023
Audit Assignments 49 45 8 8
Audit Activities Other than Audit
Assignments
1 2 1 1
Tax Advice 2 2 - -
Other Services 1 2 - 1
Auditing Agencies 53 51 9 10
Auditing activities other than audit assignments relate mainly to accounting
advice, support with /f_i.liga nancial statements. Tax advise relates to tax returns
and value added tax.
Note 6 Net /f_i.liga nancial expenses
Continuing operations
Group Parent Company
SEK M 2024 2023 2024 2023
Financial income
Interest income from Group
companies
- - 3,735 3,507
Other interest income 119 127 59 83
Exchange rate di/f_f.liga erences 13 - - 273
Dividends from Group companies - - 5,572 1,333
Total /f_i.liga nancial income 132 127 9,366 5,196
Financial expenses
Interest expenses -3,380 -3,027 -4,421 -4,166
Interest on lease liability in
accordance with IFRS 16
-53 -36 - -
Foreign exchange losses - - -282 -
Impairment shares in subsidiaries - - -1,224 -195
Other /f_i.liga nancial expenses - -8 -22 -97
Total /f_i.liga nancial expenses -3,433 -3,071 -5,949 -4,458
Net /f_i.liga nancial expenses -3,301 -2,944 3,417 738
All interest income is attributable to items that are not carried at fair value in
the income statement.
All interest expenses pertain to items not carried at fair value via the
income statement.
Exchange rate di/f_f.liga erences from accounts receivable and accounts payable
are reported in operating earnings. The amounts were negligible.
The Parent Company’s interest expenses include interest expenses to
Group companies of SEK -1,019 M (2023: -695).
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Note 7 Taxes
Continuing operations
The tax expense for the year is broken down as follows:
Group
SEK M 2024 2023
Current tax
Tax expense attributable to net earnings for the year -724 -411
Tax adjustments attributable to previous years 72 -31
Total current tax -652 -442
Deferred tax
Deferred tax related to temporary di/f_f.liga erences and
current year tax loss carryforwards
-12 -13
Recognised and derecognised deferred tax on tax loss
carryforwards attributable to previous years
40 36
Total deferred tax 28 23
Total tax expense -624 -419
The Group has operations in more than 20 European countries, each with
various tax rates. The current tax expense for the year relates mainly to
income taxes in Greece, Italy, Spain Norway, Netherlands, Switzerland and
Czech Republic. The Group’s Swedish companies paid a limited amount of
income tax for the year SEK 10 M (2023: 0) as they were able to utilise tax
losses carried forwards from historical losses.
The parent company Intrum AB is seated in Sweden where the nominal
corporate tax rate in 2024 was 20.6% (2023: 20.6%) The following reconcil-
iation explains the di/f_f.liga erence between the Group’s actual tax cost and the
expected tax cost taking the Swedish corporate tax rate into account
Group 2024 2023
Reconciliation of e/f_f.liga ective tax rateSEK M % SEK M %
Pro/f_i.liga t before tax -1,360 -168
Income tax calculated at
standard rate in Sweden, 20.6%
280 20.6 35 20.6
E/f_f.liga ect of di/f_f.liga erent tax rates in
other countries
261 19.2 314 187.0
Tax e/f_f.liga ect of non-deductible
expenses
-436 -32.0 -685 -407.7
Tax e/f_f.liga ect of tax-exempt income -495 -36.4 236 140.9
Unrecognized tax assets
pertaining to tax losses carried
forward
-248 -18.2 -138 -82.1
Utilized previously unrecognized
tax assets regarding tax losses
carried forward
40 3.0 36 21.4
E/f_f.liga ect of change in tax rates 1 - - -
Current tax adjustments
attributable to previous years
72 5.3 -46 -27.4
Deferred tax adjustments
attributable to previous years
-103 -7.5 19 11.4
Other 4 0.3 -190 -112.5
Total tax on pro/f_i.liga t for the year -624 -45.9 -419 249.4
Unrecognised tax assets regarding tax losses carried forwards relate to the
negative tax e/f_f.liga ect attributable to losses in countries where no deferred tax
asset is recognised because it is not probable that enough taxable surplus
to utilize the tax losses will arise within the foreseeable future. Utilised pre-
viously unrecognised tax assets related to tax losses carried forwards cor-
respond to the positive tax e/f_f.liga ect over the year arising from the utilisation of
tax loss losses carried forwards, not previously recognised as deferred tax
assets.
The di/f_f.liga erence between the Swedish nominal corporate tax rate, 20.6%,
and the 2024 e/f_f.liga ective tax rate, -45.9%, is primarily an e/f_f.liga ect of higher
amounts of losses in entities that have not been able to recognize corre-
sponding deferred tax assets (Sweden, Spain & the UK) and increase in
non-deductible interest in Sweden for which no deferred tax asset has been
recognized thereto.
Deferred tax assets and liabilities
When temporary di/f_f.liga erences arise between the tax value and carrying value
of assets and liabilities, a deferred tax asset or tax liability is recognised in
accordance with the criteria of IAS 12. Such temporary di/f_f.liga erences mainly
arise for portfolio investments, provisions for pensions and intangible assets.
Deferred tax assets include the value of tax losses carried forwards in the
instances where they are likely to be utilised to o/f_f.liga set taxable surpluses
within the foreseeable future.
Group 2024 2024 2023 2023
SEK M
Asset/
liability
Income/
expense
Asset/
liability
Income/
expense
Portfolio investments -537 188 -725 40
Intangible assets 242 222 20 88
Tax loss and interest
carryforwards
810 -309 1,119 149
Provisions for pensions 23 -4 27 -
Other 342 4 345 -103
Total 880 101 786 174
Recorded over OCI, FX e/f_f.liga ects
and acquisitions
-72 -151
Total 29 23
Deferred tax assets 1,986 2,197
Deferred tax liabilities -1,106 -1,411
Total 880 786
The deferred tax assets and income tax liabilities are expected to be due for
payment more than one year in the future. Deferred tax assets are reported in
the balance sheet when it is expected to be possible to o/f_f.liga set the tax losses
carried forward against taxable pro/f_i.liga ts within the foreseeable future or if there
are other taxable temporary di/f_f.liga erences towards the same taxing authority.
Deferred tax assets and liabilities are reported as a net amount if they relate to
the same tax authority or are planned to be utilised simultaneously.
Tax expenses recorded over comprehensive income, FX e/f_f.liga ects and acqui-
sitions during the year amounted to SEK -65 M (-129), of which SEK 107 M
(2023: 58) pertained to foreign currency exchange translation di/f_f.liga erences,
SEK 0 (2023: -17) related to the reversal of tax provisions and SEK -172 M
(2023: - 170) pertained to revaluations of pension provisions, acquisitions and
other foreign exchange e/f_f.liga ects.
Tax loss carryforwards per jurisdiction
SEK M Gross Unrecognised
Sweden 6,616 3,353
Austria - -
Germany 801 801
Denmark 279 279
Spain 3,785 3,473
France 178 108
Greece 37 27
Ireland 545 545
Norway - -
Poland 8 8
Romania 36 36
UK 1,394 1,370
Total 13,679 10,000
The Group has tax loss carryforwards that can be utilised against future
taxable earnings totalling SEK 13,680 M (2023: 11,066). Of these, SEK 10,000 M
(2023: 6,099) are not recognised as deferred tax assets.
Recognised deferred tax assets related to tax loss carryforwards
amounted to SEK 777 M as of 31 December 2024 (2023: 1,065) and include
SEK 672 M in Sweden (2023: 829), SEK 78 M in Spain (2023: 209), SEK 6 M in
the UK (2023: 6), SEK 18 M in France (2023: 18) and SEK 2 M in Austria (2023:
2) (2023: and 1 in Greece).
Interest carried forward per jurisdiction
SEK M Gross Unrecognised
Sweden 2,517 2,517
Spain 135 -
Netherlands 33 33
Total 2,685 2,550
Interest carried forward amount to SEK 2,685 M (2023: 2,291). Of these,
SEK2,550 M (2023: 2,272) were not recognised as deferred tax assets.
Maturities
SEK M
Tax loss
carryforwards
Interest
carryforwards
12 months 309 633
24 months 72 281
36 months 207 263
48 months 487 635
5-10 years 459 706
No maturity 12,145 167
Total 13,679 2,685
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Parent Company 2024 2024 2023 2023
Reconciliation of Parent Company
tax rate SEK M % SEK M %
Earnings after /f_i.liga nancial items 2,560 59
Income tax calculated at
standard tax rate 20.6 percent -527 20.6 -12 20.6
Tax e/f_f.liga ect of non-deductible
expenses
-509 19.9 -229 391.1
Tax e/f_f.liga ect of tax-exempt income 881 -34.4 276 -472.0
Withholding tax -10 0.4 -9 15.9
Derecognised loss carry forward
from previous year
4 -0.2 -2 4.2
Total tax on net earnings for the
year
-161 6.3 24 -40.4
Tax-exempted revenue and non-deductible expenses in the Parent Com-
pany consist primarily of dividends, non-deductible interest and impairment
of shares. The Parent company had at 31 December 2024 accumulated inter-
est carried forward of SEK 2,191 M (2023: 2,263), which has not been rec-
ognised as a deferred tax asset.
Pillar Two Income Taxes
Temporary exception
The group has applied the temporary exception issued by the IASB in May
2023 from the accounting requirements for deferred taxes in IAS12. Accord-
ingly, the group neither recognises nor discloses information about deferred
tax assets and liabilities related to Pillar Two income taxes.
Work to date
The group has performed a detailed scoping and safe harbour assessment
for all relevant jurisdictions and entities. According to the assessment, the
majority of jurisdictions where the group conducts business will be eligible
for the transitional safe harbours.
Top-up tax
On 13 December 2023, the government of Sweden, where Intrum AB (the
parent company) is incorporated, enacted the Pillar Two income tax legis-
lation e/f_f.liga ective from 1 January 2024. Under the legislation, Intrum AB may
be required to pay top-up tax in Sweden on pro/f_i.liga ts of its subsidiaries that
are taxed at an e/f_f.liga ective tax rate of less than 15 percent. According to the
Group’s assessment, no material top-up tax liability has been identi/f_i.liga ed.
The group is continuing to assess the impact of the Pillar Two income tax
legislation on its future /f_i.liga nancial performance.
Note 8 Intangible assets
Below the roll-forward of the intangible /f_i.liga xed assets for 2024
Group Parent Company
SEK M
Software and
capitalised dev
expenses
Client
servicing
assets Goodwill Brands Total
Software and
capitalised dev
expenses Tradenames Total
Opening balance 1,358 2,810 35,544 117 39,829 527 - 527
of which
Cost 3,198 9,449 38,728 514 51,889 933 22 955
Acc. amortization and imp. -1,840 -6,639 -3,184 -397 -12,060 -406 -22 -428
Investment 372 87 242 - 701 148 - 148
Disposals -19 - - -21 -40 - - -
Translation di/f_f.liga erence 52 91 731 6 880 - - -
Amortization during the period -292 -684 - -1 -977 -120 - -120
Impairment during the period -436 -115 -769 - -1,320 -410 - -410
Other movement -8 -3 123 -1 111 -4 - -4
Closing balance 1,027 2,186 35,871 100 39,184 141 - 141
of which
Cost 4,308 9,820 39,756 510 54,394 1,079 22 1,101
Acc. amortization and imp. -3,281 -7,634 -3,885 -410 -15,210 -938 -22 -960
Closing balance 1,027 2,186 35,871 100 39,184 141 - 141
Below the roll-forward of the intangible /f_i.liga xed assets for 2023
Group Parent Company
SEK M
Software and
capitalised dev
expenses
Client
servicing
assets Goodwill Brands Total
Software and
capitalised dev
expenses Tradenames Total
Opening balance 791 3,019 35,143 100 39,053 546 3 549
of which
Cost 2,519 8,846 38,333 468 50,166 809 22 831
Acc. amortization and imp. -1,728 -5,827 -3,190 -368 -11,113 -263 -19 -282
Investment 875 654 772 43 2,344 124 - 124
Disposals -6 - - - -6 - -
Translation di/f_f.liga erence -20 - -217 -1 -238 - -
Amortization during the period -282 -863 - -25 -1,170 -143 -3 -146
Impairment - - - - - - - -
Other movement - - -154 - -154 - - -
Closing balance 1,358 2,810 35,544 117 39,829 527 - 527
of which
Cost 3,198 9,449 38,728 514 51,889 933 22 955
Acc. amortization and imp. -1,840 -6,639 -3,184 -397 -12,060 -406 -22 -428
Closing balance 1,358 2,810 35,544 117 39,829 527 - 527
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Goodwill
Markets Segment 2024 2023
Norway North 3,497 3,850
Sweden North 2,013 2,015
Denmark North 807 783
Finland North 2,691 2,548
Austria & Germany Middle 2,092 2,009
Belgium & Netherlands Middle 1,285 1,234
Switzerland Middle 3,268 3,217
France Middle 3,547 3,513
UK & Ireland Middle 3,500 3,861
Portugal South 980 915
Spain South 5,003 4,614
Italy South 1,901 1,788
Greece South 5,011 4,964
Poland Eastern 43 45
Other - 233 188
Total 35,871 35,544
Annual impaitment assessment
The goodwill balances are annually assessed for impairment by comparing car-
rying amounts to value-in-use estimates. These estimates are measured based
on post-tax cash/f_l.liga ow forecasts. These forecasts are based on historical results
adjusted with current assumptions and future trends for each respective CGU.
The value-in-use estimates are based on a 4-year forecasting period. At
the end of the 4th year, a terminal value is estimated to re/f_l.liga ect the value relat-
ing to future period in perpetuity. The value-in-use estimate is a total of fore-
casting period and terminal value discounted at post-tax WACC.
Key Assumptions
The value-in-use estimates are based on following key assumptions:
2024 2023
WACC (Post-tax) 7.7% to 11.6% 7.2% to 11.1%
Tax Rate 15.4% to 27.9% 15.4% to 27.9%
Growth Rate 0.0% to 25.6% -5.4% to 19.1%
Terminal Growth Rate 2,0% 2,0%
Key considerations in determining assumptions include the following:
• To determine the WACC, a 10-year Swedish bond yield was used as the risk-
free rate. This was adjusted for an equity market risk premium, the industry
average of forecast levered beta and country risk premium to determine the
cost of equity. The weighted average cost of funds is based on the Group’s
debt outlook adjusted for country risk premium with a tax rate applied to
determine the cost of debt. The debt-to-equity ratio is based on the Group’s
long-term target capital structure applied to the cost of equity and the cost
of debt to deterrmine the WACC. Other markets’ WACC are then consid-
ered to determine the WACC for Swedish market plus adjustments re/f_l.liga ect-
ing each market’s country risk premium and long-term in/f_l.liga ation di/f_f.liga erences.
• The tax rate assumption is based on local authorities and legislation for
countres a/f_f.liga ected.
• Revenue growth rates are based on budget and forecast data approved by
the Board of Directors.
• Terminal growth rate re/f_l.liga ect a new normal of high in/f_l.liga ation and high inter-
est rates.
WACC Sensitivity
WACC is one of the key inputs to compute the value-in-use estimates. Following sensitivity analysis highlights changes to the headroom between goodwill bal-
ance and value-in-use estimates if WACC changes by 50 to 100 Basis Points (“BPS”), whist assuming no change to Terminal Growth Rate (“TGR”):
WACC sensitivity Headroom
Markets Segment WACC (100) BPS (50) BPS 0 BPS 50 BPS 100 BPS BPS Threshold1
Norway North 8,20% 738 365 53 -214 -443 9
Sweden North 7,70% 1,702 1,340 1,041 790 576 286
Denmark North 7,70% 403 282 182 98 27 121
Finland North 8,70% 1,630 1,275 974 714 488 236
Austria & Germany Middle 8,20% 424 199 10 -151 -289 4
Belgium & Netherlands Middle 8,40% 772 592 441 311 199 200
Switzerland Middle 7,70% 3,047 2,431 1,924 1,498 1,135 329
France Middle 9,10% 672 338 52 -197 -415 12
UK & Ireland Middle 9,70% 1,347 986 671 396 152 136
Portugal South 9,90% 142 67 2 -55 -106 4
Spain South 10,30% 799 417 81 -218 -484 15
Italy South 11,00% 595 451 324 210 108 158
Greece South 11,60% 3,593 3,132 2,719 2,346 2,007 542
Poland Eastern 8,90% 788 722 666 617 575 N/A
The results of sensitivity analysis outlined above indicate that an impairment amounting to SEK 834 million and SEK 1,737 million respectively would arise if the
WACC percentages assumed were increasd by 50 BPS and 100 BPS respectively.
TGR Sensitivity
TGR is another key input to compute the value-in-use estimates. Following sensitivity analysis highlights changes to the headroom between goodwill balance
and value-in-use estimates if TGR changes by 50 Basis Points (“BPS”), whilst assuming no change to WACC:
TGR sensitivity Headroom
Markets Segment TGR (100) BPS (50) BPS 0 BPS 50 BPS 100 BPS BPS Threshold1
Norway North 2.00% -365 -171 53 316 630 (11)
Sweden North 2.00% 643 826 1,041 1,296 1,605 (365)
Denmark North 2.00% 49 110 182 267 371 (147)
Finland North 2.00% 570 758 974 1,224 1,519 (306)
Austria & Germany Middle 2.00% -226 -117 10 159 337 (4)
Belgium & Netherlands Middle 2.00% 237 332 441 568 719 (265)
Switzerland Middle 2.00% 1,252 1,561 1,924 2,356 2,880 (424)
France Middle 2.00% -333 -153 52 287 562 (12)
UK & Ireland Middle 2.00% 249 447 671 926 1,219 (172)
Portugal South 2.00% -86 -44 2 55 115 (2)
Spain South 2.00% -375 -160 81 352 660 (16)
Italy South 2.00% 150 232 324 427 542 (205)
Greece South 2.00% 2,171 2,431 2,719 3,037 3,393 (843)
Poland Eastern 2.00% 591 626 666 712 767 N/A
The results of sensitivity analysis outlined above indicate that an impairment
amounting to SEK 646 M and SEK 1,384 M would arise if the TGR WACC
assumption was decreased by 50 BPS and 100 BPS respectively
1) BPS threshold shows the number of BPS by which the WACCor TGR must change for the recoverable
amount from respective market to be equal to its carrying amount.
Client Servicing Contracts
Customer contracts were acquired as part of a busines combination in Italy,
Spain and Greece. They are recognized at their fair value at the date of acqui-
sition and are subsequently amortized on a diminishing balance method.
Capitalised Development Expenses
It mainly relates to internally developed production system used by the
Group in its Servicing business.
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Revenue Sensitivity
Following sensitivity analysis highlights changes to the headroom between
goodwill balance and value-in-use estimates if revenue changes by 100 Basis
Points (“BPS”), whist assuming no change to Terminal Growth Rate (“TGR”)
and WACC:
Revenue sensitivity headroom
Markets Segment
Revenue
Growth
(200)
BPS
(100)
BPS
0
(BPS)
100
BPS
200
BPS
Norway North 2% to 12% -122 -35 53 142 233
Sweden North 2% to 15% 890 965 1,041 1,118 1,197
Denmark North 2% to 14% 134 158 182 206 231
Finland North 2% to 8% 791 882 974 1,067 1,163
Austria &
Germany
Middle 2% to 26% -90 -41 10 61 114
Belgium &
Netherlands
Middle 2% to 16% 360 400 441 482 524
Switzerland Middle 1% to 6% 1,655 1,788 1,924 2,062 2,202
France Middle 2% to 15% -119 -35 52 139 228
UK & Ireland Middle 2% to 17% 474 572 671 772 875
Portugal South 2% to 17% -40 -19 2 23 45
Spain South 0% to 2% -184 -53 81 217 356
Italy South 2% to 9% 220 272 324 377 432
Greece South 2% to 13% 2,377 2,547 2,719 2,894 3,072
Poland Eastern 2% to 7% 631 648 666 684 702
The results of sensitivity analysis indicate that an impairment would
arise amounting to SEK 183 million and SEK 555 million if revenue growth
assumptions were reduced by 100 BPS and 200 BPS respectively.
EBIT Sensitivity
Following sensitivity analysis highlights changes to the headroom between
goodwill balance and value-in-use estimates if EBIT % changes by 100 Basis
Points (“BPS”), whist assuming no change to Terminal Growth Rate (“TGR”)
and WACC:
EBIT sensitivity headroom
Markets Segment
(200)
BPS
(100)
BPS
0
(BPS)
100
BPS
200
BPS
Norway North -241 -94 53 199 346
Sweden North 814 927 1,041 1,154 1,267
Denmark North 93 137 182 226 271
Finland North 708 841 974 1,106 1,239
Austria & Germany Middle -181 -86 10 106 201
Belgium & Netherlands Middle 314 377 441 504 568
Switzerland Middle 1,625 1,774 1,924 2,073 2,222
France Middle -166 -57 52 160 269
UK & Ireland Middle 274 473 671 870 1,068
Portugal South -58 -28 2 32 62
Spain South -440 -180 81 341 601
Italy South 162 243 324 405 486
Greece South 2,403 2,561 2,719 2,876 3,034
Poland Eastern 576 621 666 711 756
The results of sensitivity analysis indicate that an impairment amounting to
SEK 444 million and SEK 1,085 million would arise if EBIT % assumptions
were reduced by 100 BPS and 200 BPS respectively.
Note 9 Portfolio investments
Group
SEK M 2024 2023
Statement of Financial Position Reconciliation
Opening Balance 35,432 35,645
Amortisations of Portfolios -4,357 -5,180
Sale of Portfolios -10,607 -401
Acquisition of Portfolios 1,663 5,367
Realised Credit Gains/-Losses (Net) -79 9
Translation Di/f_f.liga erences 643 -8
Net Investment Movement -12,737 -213
Closing Balance 22,695 35,432
Of which:
- Continuing Operations 22,695 35,294
- Discontinued Operations - 138
22,695 35,432
As at 31 December 2024, the undiscounted expected credit losses at ini-
tial recognition amounted to SEK 14,661 M (2023: 94,793) for credit-impaired
portfolios acquired by the Group during January to December.
Group
SEK M 2024 2023
Sale of Portfolios 10,607 402
Of which:
- Continuing Operations 298 103
- Discontinued Operations 10,309 299
Sale of Portfolios 10,607 402
Sales Proceeds 9,020 402
Carrying Value of Portfolios sold 10,607 401
Loss/Pro/f_i.liga t on Sale of Portfolios -1,587 1
Net Credit Losses/Gains on Portfolio Investments
Realised Credit Losses -1,583 -1,249
Realised Credit Gains 1,504 1,258
Net Realized Credit Losses/Gains -79 9
Of which;
- Continuing Operations -79 25
- Discontinued Operations - -16
Net Realized Credit Losses/Gains -79 9
Note 10 Associates and Joint Ventures
The below table reports the movements in the Investments in associates and
joint ventures in 2024 and 2023.
Group
SEK M 2024 2023
Opening balance 823 1,174
Investment in Associates and Joint Ventures 1,568 1
Earnings from Associates and Joint Ventures 207 171
Impairments of Associates and Joint Ventures
impairment
48 -97
Cash /f_l.liga ow (Dividends) from associates and joint venture -367 -433
Translation di/f_f.liga erence 73 7
Closing balance 2,352 823
SEK M 2024 2023
Income statement impact 2024
Associates and Joint Venture income 206 171
Associates and Joint Venture impairment 48 -97
Impact of discontinued operations 263 539
Share of Associates and Joint Ventures Income 517 613
Of which:
- Continuing Operations 254 74
- Discontinued Operations 263 539
Share of Associates and Joint Venture Income 517 613
Set out in the tables over are the signi/f_i.liga cant associates and joint ventures of
the Group as at 31 December 2024.The Group’s control over these associates
and joint ventures is obtained through voting rights or decision making power
stipulated either by legal structure or in respective contractual agreements.
“Ownership %” refers to share of capital, and “Entitlement %” refers to eco-
nomic entitlement representing rights to cash/f_l.liga ows in the associates and joint
ventures depending on the nature of relationship. Additional information on
the most signi/f_i.liga cant associates and joint ventures is outlined below.
Orange
In June 2024, the Group sold over 10,000 portfolios in 12 jurisdictions across
Europe to a/f_f_i.liga liates of Cerberus Capital Management L.P.. The sales included
the disposal of 5 investment vehicles owning those portfolios, namely, Intrum
Debt Finance AG, Intrum Hellas DAC, Intrum Hellas 2 DAC, Alpheus Hellas
DAC and IJ Debt Fund 1 NS FIZ. The Group has retained a 35% ownership in
the 2 purchasing entities, namely, Orange European Holdings BV and Orange
Borrower DAC (“Orange entities”), and secured a minimum 5-year exclusive
agreement to retain the servicing of the portfolios. As the Group has signif-
icant in/f_l.liga uence over the Orange entities based on the terms set in “Share-
holders’ Agreement”, the Orange entities are associates for the Group and
accounted for at equity method.
Ithaca Investment DAC
In 2018, Intrum acquired 80% of the Pro/f_i.liga t Participating Notes (PPNs) issued
by Ithaca Investment DAC (Ithaca), an entity joint-controlled with Car-
Val Investors. Ithaca invested in 51% of junior and mezzanine notes (“the
Notes”) issued by the Italian special purpose vehicle (SPV) Penelope SPV
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S.R.L. (Penelope), to /f_i.liga nance the acquisition of a portfolio of Non-performing
Loans (NPLs) sold by Banca Intesa Sanpaolo (hereinafter “ISP”). ISP hold the
remaining 49% of the Notes and the senior note. Intrum’s ultimate economic
entitlement in the Notes was 40.8%.
On 29 December 2021, Penelope was restructured and re/f_i.liga nanced with
longer duration, rated, senior notes. The senior notes were later guaranteed
through the Garanzia Cartolarizzazione So/f_f.liga erenze, typically referred to as
GACS. As part of the restructuring, Ithaca’s holding in the Notes increased
from 51% to 95%. In addition, Intrum reduced its holdings in the PPNs issued
by Ithaca from 80% to 62.5%. This resulted in an overall increase in Intrum’s
economic entitlement of the mezzanine notes from 40.8% to 59.4%.
On 24 November 2022, CarVal Investors sold their stake in Ithaca to Kiste-
fos which lead to a material write-down of the joint venture.
Evolve Spv Srl
In March 2021, Intrum acquired 20% of untranched notes issued by Evolve
Spv SRL (Evolve), an entity jointly controlled with Deva Capital. Evolve pur-
chased a portfolio on NPLs from an Italian bank, BPER Banca.
Portland Srl
In November 2021, Intrum acquired 28.5% of Mezzanine and Junior notes
issued by Portland SRL (Portland), an entity jointly controlled with Deva Cap-
ital. Portland purchased a portfolio on NPLs from ISP.
Name of entity
Accounting
method
Country of
incorporation
Place of
business Nature of relationship
% of ownership % Control % of EntitlementCarrying Value
2024 2023 2024 2023 2024 2023 2024 2023
Orange Associate Netherlands
and Ireland
Multiple Equity interest 35% N/A 35% N/A 35% N/A 1,570 -
Other Associates Associate 22 -
Ithaca Joint Venture Ireland Italy Pro/f_i.liga t participating
noteholder
- - 50% 50% 62.5% 62.5% 419 205
Evolve Joint Venture Italy Italy Pro/f_i.liga t participating
noteholder
100% 100% 50% 50% 20% 20% 124 208
Portland Joint Venture Italy Italy Mezzanine Noteholder 100% 100% 50% 50% 28.5% 28.5% 85 242
Other Joint Ventures Joint Venture 132 168
Total 2,352 823
Orange Ithaca Evolve Portland
SEK M 2024 2023 2024 2023 2024 2023 2024 2023
Summarised balance sheet
Cash and cash equivalents 82 - 840 754 63 90 175 150
Real estate assets - - 399 564 - - -
Other assets 5,070 - 9,682 9,727 110 - 61 33
Total current assets 5,152 - 10,921 11,045 173 90 236 183
Portfolio receivable 576 - 4,790 6,144 458 953 1,133 1,820
Other long term assets 9,302 - - -
Total non current assets 9,878 - 4,790 6,144 458 953 1,133 1,820
Other liabilities 356 - 1,877 2,094 38 32 146 62
Total current liabilities 356 - 1,877 2,094 38 32 146 62
Other long term liabilities 9,951 - 13,233 14,772 - - 665 841
Total non-current liabilities 9,951 - 13,233 14,772 - - 665 841
Net assets/(liabilities) 4,723 - 601 323 593 1,011 558 1,100
Summarised pro/f_i.liga t and loss
Revenues 1,187 - 945 785 42 212 183 476
Prodution expenses -478 - -326 -609 -188 -31 -551 -262
Other expenses -134 - -15 -30 -2 -2 -5 -5
Interest expense -30 - -338 -256 -109 -117 -149 -163
Net Income/(loss) 545 - 266 -110 -257 62 -522 46
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Note 11 Tangible /f_i.liga xed assets
Below the roll-forward of the tangible /f_i.liga xed assets for 2024
Group Parent Company
SEK M
Computer Hardware,
Equipement, /f_i.liga xtures and
other tangible /f_i.liga xed assets
ROU -
Lease property
ROU -
other leased vehicles
and equipment Total ROU assets
Total Group
Fixed Assets Computer hardware
ROU -
Leased property
Total Parent
Fixed Assets
Opening balance 280 513 71 584 864 2 2 4
of which
Cost 936 1,284 176 1,460 2,396 18 4 22
Acc. amortisation -656 -771 -105 -876 -1,532 -16 -2 -18
Investment 54 268 20 288 342 2 38 40
Disposals -7 -3 -2 -5 -12 - - -
Translation di/f_f.liga erence 8 13 6 19 27 - - -
Amortisation of the period -105 -195 -31 -226 -331 -2 -5 -7
Other movement -5 -25 44 19 14 - - -
Closing balance 225 571 108 679 904 2 33 35
of which
Cost 910 1,339 184 1,523 2,433 20 42 62
Acc. amortisation -685 -768 -76 -844 -1,529 -18 -9 -27
Closing balance 225 571 108 679 904 2 33 35
Below the roll-forward of the tangible /f_i.liga xed assets for 2023
Group Parent Company
SEK M
Computer Hardware,
Equipement, /f_i.liga xtures and
other tangible /f_i.liga xed assets
ROU -
Lease property
ROU -
other leased vehicles
and equipment Total ROU assets Total /f_i.liga xed assetsComputer hardware
ROU -
Lease vehicles Total /f_i.liga xed assets
Opening balance 240 614 45 659 899 5 1 6
of which
Cost 877 1,314 98 1,412 2,289 18 2 20
Acc. amortisation -637 -700 -53 -753 -1,390 -13 -1 -14
Investment 144 108 105 213 357 1 2 3
Disposals -1 -4 1 -3 -4 - - -
Translation di/f_f.liga erence -2 -2 -1 -3 -5 - - -
Amortisation of the period -101 -195 -79 -274 -375 -4 -1 -5
Other movement - -8 - -8 -8 - - -
Closing balance 280 513 71 584 864 2 2 4
of which
Cost 936 1,284 176 1,460 2,396 19 4 23
Acc. amortisation -656 -771 -105 -876 -1,532 -17 -2 -19
Closing balance 280 513 71 584 864 2 2 4
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Note 12 Other /f_i.liga nancial assets
Group
SEK M 2024 2023
Deposits 17 16
Loan receivables 42 56
Other 123 103
Total 182 175
Opening balances 175 52
Paid -52 -2
Acquired 51 125
Exchange rate di/f_f.liga erence 8 -
Carrying values 182 175
Note 13 Acquisitions of operations
On 1 September 2023, the Group completed its acquisition of Solvia Ser-
vicios Inmobiliarios, S.A.U. (former: Haya Real Estate S.A.) in Spain. The
acquired business includes a servicing platform for secured loans and assets
and has no principal investment activity.
As of 31 December 2023, the Purchase Price Allocation (“PPA”) exer-
cise was ongoing and the Group disclosed a preliminary acquisition analy-
sis. During the measurement period, the PPA for the acquisition was /f_i.liga nalised
resulting in an adjustment amounting to SEK 197 million in goodwill rec-
ognised in the Group. The below is the /f_i.liga nal acquisition analysis:
SEK M
Carrying
amounts before
the acquisition
Fair value
adjust-
ments
Fair
value
Client relationships 503 -260 243
Other tangible and intangible /f_i.liga xed assets 304 -219 85
Deferred tax asset 258 63 321
Other receivables 352 - 352
Cash and bank balances 190 - 190
Deferred tax liability - -47 -47
Other liabilities and provisions -1,422 -164 -1,586
Net liabilities 185 -627 -442
Paid in cash 1,226
Less loan provided included in cash paid -1,049
Purchase price 177
Cash and cash equivalents in acquired
companies
190
Purchase price 177
Net liabilities 441
Goodwill 2024 618
Goodwill recognised in 2023 421
Adjusted during the period 197
Note 14 Discontinued operations
On 28 June 2024, Intrum completed the sale of part of its portfolio
investments back-book to a third-party investor for a total consideration of
SEK 9 bn. The transaction resulted in a total loss of SEK 1.6 bn. The invest-
ments disposed of by Intrum were acquired by a leveraged investment vehi-
cle. The acquired assets are funded 57% by leverage and 27.95% by the
third-party investor. The third-party investor and Intrum hold a 65% and 35%
stake in the leveraged investment vehicle, respectively. In conjunction with
this transaction, Intrum has agreed a minimum 5-year exclusive servicing
agreement with the investment vehicle, provided certain KPIs are met. Net
cash proceeds from the back-book sales amounting to SEK 7.2 bn has been
used to reduce debt.
The /f_i.liga nancial results of operations discontinued in 2024 are shown below:
31 Dec 2024
SEK M
Continuing
Operations
Discontinued
Operations
Including
Discontinued
Operations
Income 18,033 861 18,894
Direct costs -10,078 -53 -10,131
Net Credit Losses -79 - -79
Share of Associates and JVs 517 -263 254
Other operating items -1,320 - -1,320
Indirect Costs -5,132 -41 -5,173
Net Operating Income/EBIT 1,941 504 2,445
Net /f_i.liga nancial items -3,301 -186 -3,487
Loss on disposals in the period - -1,587 -1,587
Income before Tax -1,360 -1,269 -2,629
Taxes -624 -92 -716
Net Income/(loss) for the
period
-1,984 -1,361 -3,345
31 Dec 2023
SEK M
Continuing
Operations
Discontinued
Operations
Including
Discontinued
Operations
Income 17,705 2,296 20,001
Direct costs -9,409 -313 -9,722
Net Credit Losses/Gains -258 266 8
Share of Associates and JVs 613 -539 74
Indirect Costs -5,875 -122 -5,997
Net Operating Income/EBIT 2,776 1,588 4,364
Net Financial Items -2,944 -804 -3,748
Income before Tax -168 784 616
Taxes -419 -140 -559
Net Income/(loss) for the
period
-587 644 57
The cash/f_l.liga ows of operations discontinued in 2024 are as follows:
SEK M 31 Dec 2024 31 Dec 2023
Operating Cash/f_l.liga ows -1,387 456
I n v e s t i n g C a s h /f_l.liga o w s 556 -275
Financing Cash/f_l.liga ows -2,131 -61
Net Cash/f_l.liga ows -2,962 120
The impact on earnings per share of operatins that discontinued in 2024 are
as follows:
SEK M 31 Dec 2024 31 Dec 2023
Earnings per Share before Dilution -11.28 -5.32
Earnings per Share after Dilution/uni00A0 -11.28 -5.32
All assets and liabilities associated with the jurisdictions sold during 2024 are
excluded from the consolidated Statement of Financial Position as of
31 December 2024.
On 24 May 2023, the Group completed its sale of the Brazilian operations
in line with its 2023 divestment strategy. The disposal resulted in a loss of SEK
35M.
On 30 June 2023, Intrum signed a binding agreement to exit operations in
the Baltics (Latvia, Lithuania and Estonia) and Romania. The total purchase
consideration amounted to EUR 30 M and EUR 17 M for Baltics and Roma-
nia, respectively. The purchase consideration for the Baltics are settled on
a deferred payment basis with last payments settled in December 2024 for
Baltics and in December 2025 for Romania. Finnish, Estonian and Latvian
operations were disposed of during Q3 2023. The Romanian portfolio invest-
ments were disposed of during Q4 2023.
At 31 December 2023, the /f_i.liga nancial position of operations that discontin-
ued in 2023 are as follows:
SEK M
Discontinued
Operations
Intangible assets 88
Receivables and Other Operating Assets 54
Portfolio investments 138
Other Assets 19
Cash and Cash Equivalents 197
Total Assets Held for Sale 496
Liabilities 82
Pensions and Provisions 8
Other Payables 10
Total Liabilities Held For Sale 100
Net Assets Held for Sale 396
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Note 15 Receivables and other operating assets
Group Parent Company
2024 2023 2024 2023
Accounts receivable (see ageing
below)
1,581 1,398 - -
1,581 1,398 - -
Other receivables
Outlays on behalf of clients 157 153 - -
Less: reserve for uncertainty in
outlays on behalf of clients
- -7 - -
Net outlay receivables on behalf
of clients
157 146 - -
Prepaid pension premiums 11 12 11 -
Receivables from associated
companies and joint ventures
64 103 16 -
Advance payments in connection
with property auctions
19 44 - -
VAT 440 246 - 15
Other 612 455 4 7
Total carryinhg value of other
receivables
1,303 1,006 31 22
Prepaid expenses and accrued
income
Accrued income 1,319 1,531 - 15
Prepaid expenses 1,010 382 868 165
Total prepaid and accrued
income
2,329 1,913 868 180
Total receivables and other
operating assets
5,213 4,463 899 202
Group
SEK M 2024 2023
Account receivable not overdue 935 899
Accounts receivable <30 days overdue 240 259
Accounts receivable 30–60 days overdue 108 148
Accounts receivable 61– 90 days overdue 40 43
Accounts receivable >90 days overdue 380 162
Total accounts receivable 1,703 1,511
Accumulated reserve for expected credit losses,
opening balance
-113 -108
Reserve for expected credit losses for the year -34 -12
Realised client losses for the year 26 8
Withdrawals from reserve for expected credit losses
for the year
2 -1
Translation di/f_f.liga erence -3 -
Accumulated impaired receivables, closing balance -122 -113
Carrying value 1,581 1,398
Note 16 Fiduciary assets and liabilities
Group
SEK M 2024 2023
Cash held on behalf of clients 1,281 1,106
Payable to Clients -1,281 -1,106
Net Fiduciary Assets and Liabilities - -
Note 17 Cash and cash equivalents
Group Parent Company
SEK M 2024 2023 2024 2023
Cash and bank balances 2,392 3,617 672 762
Restricted bank accounts 112 152 - -
Total Cash and Cash Equivalents 2,504 3,769 672 762
The Parent operates a cash pooling program for the group entities. The
Group cash transferred to the Parent Company is included in current
accounts and an intercompany payable is recognised for the same amount
included in Note 23 Payables and Other Operating Liabilities.
Note 18 Net de/f_i.liga ned bene/f_i.liga t liability
Group
SEK M 2024 2023
Unfunded de/f_i.liga ned bene/f_i.liga t liability 138 214
Funded de/f_i.liga ned bene/f_i.liga t liability 406 328
Total de/f_i.liga ned bene/f_i.liga t liability 544 542
Plan assets -456 -400
Net de/f_i.liga ned bene/f_i.liga t liability 88 142
De/f_i.liga ned dene/f_i.liga t liability changes
Balance as at 1 January 142 141
Current service cost 31 26
Past service cost - -2
Interest expense 3 7
Expense for the period 34 31
Actuarial (gains)/losses 4 22
Pensions paid -36 -36
Return on plan assets -39 -
Foreign exchange di/f_f.liga erence -17 -16
Balance as at 31 December 88 142
Group
SEK M 2024 2023
Net De/f_i.liga ned Plan Asset Changes
Balance as at 1 January 400 363
Interest Income 5 7
Return on plan assets 43 -8
Bene/f_i.liga t paid -20 -28
Contributions 25 27
Net payment for the period 53 -2
Foreign exchange di/f_f.liga erence 1 39
Balance as at 31 December 454 400
Key Assumptions (%)
2024 2023
Discount Rate 0.9 - 3.9 1.5 - 3.7
Bene/f_i.liga t Increases 0.0 - 3.3 0.0 - 3.0
Salary Increases 1.0 - 4.0 0.0 - 3.0
Expense for the Period and Interest Income are recognised in SOI. Return on
Plan Assets, Actuarial Assumptions (Gains) / Losses and Foreign Exchange
Di/f_f.liga erence are recognised in SOCI. Net Payment for the Period is recognised
in SOCF..
Group employees in Switzerland and Germany, are covered by pension
plans funded through assets under the management of insurance compa-
nies and are reported as de/f_i.liga ned bene/f_i.liga t plans. In particular in Switzerland,
the Group has an commitment to fund service pension plans funded through
insurance policies based on the Swiss Life Collective BVG Foundation and in
Transparent BVG Foundation. The pension commitment is funded through
insurance contracts. .
Employees in Norway, Poland, France, Greece, Spain and Italy are covered
by unfunded de/f_i.liga ned bene/f_i.liga t plans that can be paid out as a one-time sum or
as monthly payments following retirement.
Pension plans in Belgium and Sweden are funded through insurance
contracts.
Regarding Sweden, the Group is covered by collective agreement (Almega
/ Unionen / Akademikerförbunden) and is obliged to ensure collective
agreed pensions and insurance for its employees. The pension plan is called
ITP and made of ITP 1 which includes employees born in 1979 or later and
ITP2 which covers employees born in 1978 or earlier. ITP 1 is a de/f_i.liga ned contri-
bution plan.
For salaried employees in Sweden, the ITP 2 plan’s de/f_i.liga ned bene/f_i.liga t pension
obligations for old-age and family pension (or family pension) are secured
through an insurance policy with Alecta. According to a statement from the
Swedish Corporate Reporting Board, UFR 10 Reporting of ITP 2 pension
plan, which is /f_i.liga nanced through insurance with Alecta, should be treated as
a multi-employer de/f_i.liga ned bene/f_i.liga t plan. For the /f_i.liga nancial year 2024, the com-
pany did not have access to the information required in order to report its
proportionate share of the plan’s obligations, plan assets and costs, which
meant that the plan could not be recognised as a de/f_i.liga ned bene/f_i.liga t plan. The
ITP 2 pension plan, which is secured through insurance with Alecta, is there-
fore recognised as a de/f_i.liga ned contribution plan. The premium for the de/f_i.liga ned
bene/f_i.liga t old-age and family pension is individually calculated and is depen-
dent, among other things, on salary, previously earned pension and expected
remaining period of service. The expected contributions in the next reporting
period for ITP 2 insurance policies taken out with Alecta amount to SEK 10 M
68Annual and Sustainability Report 2024About Intrum Governance and control Board of Directors’ Report Financial statements Sustainability information
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(2023: 10 million). The Group’s share of the total contributions to the plan and
the Group’s share of the total number of active members in the plan are 0.07
and 0.04% respectively (2023: 0.06 and 0.04% respectively).
The collective funding level is the market value of Alecta’s assets as a per-
centage of the insurance liabilities calculated using Alecta’s actuarial meth-
ods and assumptions, which are not in accordance with IAS 19. The collective
funding level should normally be permitted to vary between 125 and 170%.
One measure that could be taken to strengthen the funding level if it is
deemed too low, is to increase the contractual price for new subscriptions
and the extension of existing bene/f_i.liga ts. If the funding level exceeds 150%, pre-
mium reductions can be introduced. At the end of 2024, Alecta’s surplus in
terms of the collective funding level was 162% (2023: 158%).
Note 19 Borrowing
Change in borrowings for the year
Group Parent Company
SEK M 2024 2023 2024 2023
Opening balance 59,852 56,519 59,852 56,519
Borrowings 12,241 40,190 12,241 40,190
Amortisation of loans -22,928 -36,302 -22,928 -36,302
E/f_f.liga ects of acquisitions and
divestments
181 418 181 418
Exchange rate di/f_f.liga erences 1,355 -973 1,355 -973
Closing balance 50,701 59,852 50,701 59,852
Of which:
Current liabilities 13,839 7,953 13,839 7,953
Long-term liabilities 36,862 51,899 36,862 51,899
50,701 59,852 50,701 59,852
Summary of borrowings at year end
Group Parent Company
SEK M 2024 2023 2024 2023
Current liabilities
Commercial papers - 694 - 694
Liabilities to credit institutions 1,030 - 1,030 -
Bond loan 12,809 7,259 12,809 7,259
Total borrowings in current
liabilities 1
13,839 7,953 13,839 7,953
Long-term liabilities
Bank loans 12,231 14,885 12,231 14,885
Bond loan 24,631 37,014 24,631 37,014
Total borrowings in long term
liabilities
36,862 51,899 36,862 51,899
Total borrowing 50,701 59,852 50,701 59,852
1) All borrowings in current liabilities are less than one year
Maturities of long term borrowings
Group Parent Company
SEK M 2024 2023 2024 2023
Between 1 and 2 years 22,343 14,123 22,342 14,123
Between 2 and 3 years 9,469 23,351 9,469 23,351
Between 3 and 4 years 5,050 9,432 5,050 9,432
Between 4 and 5 years - 4,993 - 4,993
Total borrowings in long term
liabilities
36,862 51,899 36,861 51,899
Unused lines of credit excluding guarantee facility
Group Parent Company
SEK M 2024 2023 2024 2023
Expiring within one year - - - -
Expiring after more than one year - 5,089 - 5,089
Total - 5,089 - 5,089
Intrum AB is /f_i.liga nanced through a revolving syndicated loan facility, bonds,
bilateral loans and commercial papers. The loan facility of EUR1.1 billion
(2023: EUR 1.8 billion) is arranged with a banking consortium comprising
14 banks and applies until January 2026. The loan facility contains oper-
ations-related and /f_i.liga nancial covenants, including limits on speci/f_i.liga c /f_i.liga nan-
cial indicators. In addition, the credit agreement includes covenants that
may restrict, condition or prohibit the Group from incurring additional debt,
making acquisitions, disposing of assets, making capital and /f_i.liga nance lease
expenditures, allowing assets to be encumbered, changing the scope of the
Group’s business and entering into a merger agreement. The loan carries a
variable interest rate based on the interbank rate in each currency, with a
margin. All operational and /f_i.liga nancial covenants were fully met in 2024.
As of 31 December 2024, the loan framework had been utilised in the total
amount of SEK 12,245 M (2023: 13,834), which can be broken down into SEK
11,157 M (2023: 11,044), NOK 1,120 M (2023: NOK 1,140 M) and EUR 0 (2023:
EUR 150 M). In addition, NOK 55 M (2023: NOK 59 M), DKK 5 M (2023: DKK 0)
and EUR 25 M (2023: EUR 0) of the total loan framework is reserved for Guar-
antees. The unutilised portion of the revolving credit facility amounted to
SEK 0 (2023: 5,089).
In November 2023, Intrum entered into a bilateral secured term loan
facility with an International bank. The balance of the loan was EUR 100 M
as of 31 December 2024 (31 December 2023: EUR 90 M).
In 2024, Intrum repurchased bonds totaling EUR 68.8M in February, and
repaid bonds at maturity totaling EUR 50 M in June, EUR 469 M in July, and
SEK 1,500 M in October.
As of year-end 2024 Intrum had outstanding nominal value of bonds total-
ing SEK 37,440 M (2023: 44,574) of which SEK 3,740 M (2023: 5,250) are
issued under the Swedish MTN program, SEK 857 M (2023: 1,387) are private
placements and the remaining SEK 32,843 M (2023: 37,937) are bonds issued
in the Euro market.
During 2024 commercial papers decreased by SEK 694 M (2023:
decreased by 436). At the end of the year, outstanding commercial papers
amounted to SEK 0 (2023: 694). The decrease is due to generally lower liquid-
ity in the commercial paper market.
Bonds outstanding as per 31 December 2024
Designation Currency Nominal amount (M) SEK M Maturity date
Interest rate for /f_i.liga xed-rate bonds
and margin for variable-rate bonds
Market value of bond
SEK M
EUR 2025 Fix PP EUR 75 856 3/15/2025 3.00% 765
SEK 2025 Fix SEK 400 399 7/3/2025 11.88% 312
SEK 2025 Float SEK 1,100 1,097 7/3/2025 8.00% 797
EUR 2025 Fix EUR 803 9,209 8/15/2025 4.88% 7,063
SEK 2025 Float SEK 1,250 1,248 9/12/2025 4.60% 912
Bonds included in
current liabilities
12,809 9,849
EUR 2026 Fix EUR 800 9,114 7/15/2026 3.50% 6,524
SEK 2026 Float SEK 1,000 998 9/9/2026 3.30% 696
EUR 2027 Fix EUR 828 9,469 9/15/2027 3.00% 6,807
EUR 2028 Fix EUR 450 5,050 3/15/2028 9.25% 3,682
Bonds included in
long term liabilities
24,631 17,709
Total Bonds 37,440 27,558
Bonds with “Fix” in the denomination mature at /f_i.liga xed interest rates. Bonds with “Float” in the denomination mature at variable interest rates. Bonds with “PP” in
the denomination refer to Private Placements.
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Note 20 Other /f_i.liga nancial liabilities
Group
SEK M 2024 2023
Long-term Deferred purchase consideration 363 300
Long-term liability to non-controlling interests 253 341
Total 616 641
Note 21 Other provisions
Group
SEK M 2024 2023
Opening balances 483 38
Amounts utilised during the year -298 -17
Unutilised amounts reversed during the year -54 -30
New provisions for the year 239 374
Provisions in acquired operations - 125
Reclassi/f_i.liga ed provisions 29 -
Translation di/f_f.liga erences 7 -7
Closing balances 406 483
Of which: long-term provisions
Expenses for returning leased o/f_f_i.liga ce premises to their
original condition
12 1
Personnel expenses 32 13
Legal and tax related provisions 101 89
Other 13 4
Total long-term provisions 158 107
Of which: short-term provisions
Expenses for returning leased o/f_f_i.liga ce premises to their
original condition
9 -
Expenses for termination of personnel and other
restructuring expenses
187 101
Legal and tax related provisions 38 171
Other 14 104
Total short-term provisions 248 376
Total 406 483
Short-term provisions are expected to be settled within 12 months from of
the balance sheet date. Long-term provisions are, by their nature, di/f_f_i.liga cult to
determine in terms of their maturity and amount. Settlement is likely in one
year’s time at the earliest.
Note 22 Lease liability
Group Parent Company
SEK M 2024 2023 2024 2023
Due after 12 months 526 436 - -
Due before 12 months 185 193 - -
Total lease liability 711 629 - -
The discount rates used to measure the liability ranges from 0.83% to 24.93%
(2023: 0.64% to 28%).
Note 23 Payables and other operating liabilities
Group Parent Company
SEK M 2024 2023 2024 2023
Accounts payable 466 332 19 27
Advances from client 16 102 0 -
Other current liabilities 1,877 1,507 102 5
Accrued expenses and prepaid
income
4,181 4,100 1,207 1,148
Total payable and other
operating liabilities
6,540 6,041 1,328 1,180
Group Parent Company
SEK M 2024 2023 2024 2023
Accrued social security expenses 294 159 33 10
Accrued vacation pay 188 346 18 19
Accrued bonus expense 395 548 59 78
Prepaid subscription income 916 1,017 - -
Accrued interest 960 853 892 785
Other personnel-related
expenses
461 246 167 18
O/f_f_i.liga ce - related expenses 95 92 5 4
Production costs 417 342 - -
Other accrued expenses 455 497 33 234
Total 4,181 4,100 1,207 1,148
Prepaid subscription income
Prepaid subscription income includes SEK 857 M (2023: 975) represents rev-
enue collected in advance to service long-term NPLs portfolio. The Com-
pany has a right to exclusively service these NPLs up to 2065. Revenue is
recognised as services are rendered. Signi/f_i.liga cant revenue is expected to be
recognised by 2030.
Other current liabilities
For 2024, other current liabilities amount to SEK 1,881 (2023: SEK 1,507 M).
which primarily relates to VAT and other operational taxes payable of SEK
612 M (542) and SEK 370 M (408) relating to deferred payments for portfo-
lio investments.
Note 24 Share capital and reserves
Share capital
According to the Articles of Association of Intrum AB (publ), the company’s
share capital will amount to not less than SEK 1.3 M (1.3 M) and not more than
SEK5 .2 M (5.2 M). 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.
There are 121,720,918 (2023: 121,720,918 ) shares in the company, and
the share capital amounts to SEK 2,899,805 (2023: 2,899,805). See below
regarding repurchased shares
The number of shares outstanding at the end of the year was 120,601,863
(120,536,935). The average number of shares outstanding over the year was
120,569,399 (120,536,935).
Share repurchase
Shares repurchased represent treasury shares, some of which can be
assigned to certain employees of the Group bene/f_i.liga ciaries of long term incen-
tive plans . There has been no repurchase of shares in 2023 or 2024.
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 and also include the
share premiums paid in connection with the issuance of new issues. When
shares are issued at a premium, the amount exceeding their quota value is
transferred to the share premium reserve which is included in other paid-in
capital. Provisions to the share premium reserve as of 2006 are treated as
non-restricted equity.
Reserves
Reserves includes the translation reserve, which contains all exchange
rate di/f_f.liga erences that have, since the transition to IFRS in 2004, arisen on
the translation of /f_i.liga nancial statements from foreign operations as well as
on long-term intra-Group receivables which are considered as permanent
investment in the Group’s foreign operations. Reserves also include the
exchange rate gains and losses arising in 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.
Reserves include fair value reserves for unrealised exchange rate gains or
losses on 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 treated as non-restricted equity.
Retained earnings including net earnings for the year
Retained earnings include:
(i) Earnings in the Parent Company and its subsidiaries, joint ventures and
associated companies
(ii) Accumulated revaluations of the Group’s de/f_i.liga ned bene/f_i.liga t pension provi-
sions are also included.
Dividends paid and share repurchases are deducted from the amount.
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Earnings brought forward refer to retained earnings from the previous year
less the dividend paid and share repurchases. Retained earnings are non-
restricted equity.
Dividends
Following the balance sheet date the Board of Directors did not propose a
dividend per share for the /f_i.liga nancial year ended 31 December 2024.
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 distributions of earnings.
Capital structure
The company’s de/f_i.liga nition of capital corresponds to shareholders’ equity
including holdings without a controlling interest, which at year-end totaled
SEK 13,388 M (2023: 16,752 M).
The measure of the company’s capital structure used for control purposes
is consolidated net debt in relation to pro forma rolling 12-month-adjusted
cash EBITDA, which at year-end amounted to 4.5x (2023: 4.4x). This ratio is
calculated by placing current consolidated net debt at the end of the year in
relation to pro forma cash EBITDA, including operations being phased out
and including a calculated cash EBITDA throughout the period for larger units
acquired during the year, and excluding non-recurring items (NRIs). Net debt
is de/f_i.liga ned as the sum of interest-bearing liabilities and pension provisions
less liquid funds and interest-bearing receivables.
Note 25 Non-controlling interest
The non-controlling interest relates to Greek and Spanish subsidiaries.
During 2023, the Group acquired non-controlling interest in one of the
Spanish subsidiaries which resulted in reduction of the non-controlling bal-
ance by SEK 343 M. An equal amount was recognised as an increase in
shareholders equity balance. The cash payment for the share repurchase
amounted to SEK 355 M and is included in the 2023 consolidated statement
of cash /f_l.liga ows. The Group had a put/call option to acquire non-controlling
interest in a Spanish subsidiary. The put/call option on Spanish subsidiary’s
non-controlling interest entitled either party to exercise the instrument,
requiring the Group to acquire minority stake at fair value.The instrument had
no pre-set expiry date and was non-transferrable to third parties. The put/
call option was executed in 2024 with the acquisition of the non-controlling
interest in the Spanish subsidiary.
During the year, the Group acquired non-controlling interest in one of
the Spanish subsidiaries which resulted in reduction of the non-controlling
balance by SEK 79 M. An equal amount was recognized as an increase in
shareholders equity balance. The cash payment for the share repurchase
amounted to SEK 62 M and is included in the consolidated statement of
cash /f_l.liga ows. The remaining SEK 17 M was classi/f_i.liga ed as a deferred payment for
shares to be settled at a later date.
Note 26 Pledged assets and contingent liabilities
Pledged assets
Pledged collateral includes deposits and restricted bank balances that can
be claimed by clients, suppliers or authorities in the event that Intrum were
not to meet its contractual obligations. Pledged collateral also includes
shares in subsidiaries within the Group pledged as collateral for the Parent
Company’s revolving credit facility.
Group Parent Company
SEK M 2024 2023 2024 2023
Pledged assets
Restricted bank accounts 112 152 112 152
Shares in subsidiaries 49,937 42,992 49,937 42,992
Total 50,049 43,144 50,049 43,144
Contingent liabilities 7 7 7 7
Payment guarantees - 1 - -
Total 7 8 7 7
Payment guarantees/uni00A0
The Group o/f_f.liga ers services whereby clients, against payment, obtain a guar-
antee from Intrum regarding the clients’ receivables from their customers.
This entails a risk being incurred that Intrum must compensate the customer
for the guaranteed amount in the event that the invoices are not paid on time.
In those cases where the guarantee comes into play, Intrum assumes the
client’s claim against its customer and takes over the continued handling of
the case within the Portfolio Investments area of operations. At the end of
the year, the total amount of contingent liabilites is SEK7 M (2023: 7). Intrum’s
risk in this business is managed through strict credit limits and an
analysis of the borrower’s credit status. At the end of the year, Intrum had
allocated SEK 0 (2023: 1) in the balance sheet to cover payments that may
arise due to the guarantee.
Other
The Group is involved in several legal disputes, both disputes that are cus-
tomary for an organsation as Intrum and disputes in the ordinary course of
business. None of these disputes are expected to give rise to any signicant
liabilities or cost.
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Note 27 Segment analysis (including discontinued operations)
2024 Servicing Investing
SEK M North Middle South Eastern Subtotal North Middle South Eastern Subtotal Eliminations Central Grand Total
Discontinued
Operations
Total excluding
Discontinued
Operations
Performance Analysis:
External Income 1 2,669 3,162 6,393 21 12,245 1,449 2,074 1,884 1,112 6,519 - 130 18,894 861 18,033
Internal Income 375 741 553 479 2,148 - - - - - -2,337 189 - - -
Income 3,044 3,903 6,946 500 14,393 1,449 2,074 1,884 1,112 6,519 -2,337 319 18,894 861 18,033
Direct Costs -1,882 -2,615 -4,663 -255 -9,415 -433 -1,088 -735 -658 -2,914 2,277 -79 -10,131 -53 -10,078
Indirect Costs -743 -1,034 -1,316 -174 -3,267 -18 -131 -82 -194 -425 56 -1,537 -5,173 -41 -5,132
Share of Associates and Joint Ventures - - 36 - 36 137 15 66 - 218 - - 254 -263 517
Net Credit Gains - - - - - -99 -32 -89 141 -79 - - -79 - -79
Other Operating Items -217 -401 - -141 -759 - - - - - - -561 -1,320 - -1,320
Net Operating Income / EBIT 2 202 -147 1,003 -70 988 1,036 838 1,044 401 3,319 -4 -1,858 2,445 504 1,941
Net Financial Expenses -5,074 -1,773 -3,301
Income before Taxes -2,629 -1,269 -1,360
Taxes -716 -92 -624
Net Income / (Loss) for the Year -3,345 -1,361 -1,984
2023 Servicing Investing
SEK M North Middle South Eastern Subtotal North Middle South Eastern Subtotal Eliminations Central Grand Total
Discontinued
Operations
Total excluding
Discontinued
Operations
Performance Analysis:
External Income 1 2,352 2,582 6,345 165 11,444 1,692 2,502 2,444 1,907 8,545 12 20,001 2,296 17,705
Internal Income 384 847 702 585 2,518 - - - - - -2,750 232 - - -
Income 2,736 3,429 7,047 750 13,962 1,692 2,502 2,444 1,907 8,545 -2,750 244 20,001 2,296 17,705
Direct Costs -1,920 -2,204 -4,246 -511 -8,881 -451 -1,141 -915 -787 -3,294 2,687 -234 -9,722 -313 -9,409
Indirect Costs -739 -1,269 -1,369 -355 -3,732 -29 -48 -82 -197 -356 63 -1,972 -5,997 -122 -5,875
Share of Associates and Joint Ventures - - 22 - 22 - - 52 - 52 - - 74 -539 613
Net Credit Gains - - - - - -153 -21 -96 278 8 - - 8 266 -258
Net Operating Income / EBIT 2 77 -44 1,454 -116 1,371 1,059 1,292 1,403 1,201 4,955 - -1,962 4,364 1,588 2,776
Net Financial Expenses -3,748 -804 -2,944
Income before Taxes 616 784 -168
Taxes -559 -140 -419
Net Income / (Loss) for the Year 57 644 -587
1) External Servicing Income includes SEK -334 M (-854 M) relating to discontinued operations so Exter-
nal Servicing Income for continuing operations is SEK 12,579 M (12,298 M). External Investing Income
includes SEK 1,195M (3,150 M) relating to discontinued operations so External Investing Income for
continuing operations is SEK 5,324 M ( 5,395 M).
2) External Servicing EBIT includes SEK 88 M (76 M) relating to discontinued operations so External
Servicing EBIT for continuing operations is SEK 900 M (1,294 M). External Investing EBIT includes
SEK 416 M (1,510 M) relating to discontinued operations so External Investing EBIT for continuing
operations is SEK 2,903 M (3,445 M).
Market breakdown
Market refers to the place where the Group carries out servicing business.
• Northern Markets (5 markets): ‘Norway’, ‘Sweden’, ‘Denmark’, ‘Finland’ and ‘Poland’
• Middle Markets (5 markets): ‘Austria & Germany’, ‘Belgium & Netherlands’, ‘France’, ‘Switzerland’ and ‘UK & Ireland’
• Southern Markets (4 markets): ‘Portugal’, ‘Spain’, ‘Italy’ and ‘Greece’
• Eastern Markets (3 markets): ‘Czech Republic’, ‘Slovakia’, Romania and ‘Hungary’.
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Income by Country
2024 2023
Revenue from
Contracts with
Customers
Revenue
on Portfolio
Investments Total income
Revenue from
Contracts with
Customers
Revenue
on Portfolio
Investments Total income
Spain 2,520 781 3,301 2,295 899 3,194
Greece 2,175 448 2,623 2,480 720 3,200
Italy 1,645 395 2,040 1,541 440 1,981
United Kingdom 952 994 1,946 567 890 1,457
Norway 885 486 1,371 909 525 1,434
Finland 860 245 1,105 776 436 1,212
Switzerland 839 148 987 735 246 981
Germany 392 458 850 311 658 969
Hungary 100 730 830 89 949 1,038
Sweden 703 215 918 528 406 934
France 648 104 752 585 274 859
Poland 201 281 482 120 555 675
Denmark 165 206 371 155 300 455
Other countries 521 797 1,318 546 1,066 1,612
Total 12,606 6,288 18,894 11,637 8,364 20,001
Discontinued Operations 334 -1,195 -861 852 -3,148 -2,296
Total Income excluding
Discontinued Operations
12,940 5,093 18,033 12,489 5,216 17,705
Income by Segment
2024 2023
Revenue from
Contracts with
Customers
Revenue
on Portfolio
Investments Total income
Revenue from
Contracts with
Customers
Revenue
on Portfolio
Investments Total income
Servicing 12,245 - 12,245 11,444 - 11,444
Investing 231 6,288 6,519 182 8,364 8,546
Central 130 - 130 11 - 11
Total 12,606 6,288 18,894 11,637 8,364 20,001
Discontinued Operations 334 -1,195 -861 852 -3,148 -2,296
Total Income excluding
Discontinued Operations
12,940 5,093 18,033 12,489 5,216 17,705
Intangible Assets, Property, Plant and Equipment and Right of Use Assets
SEK M 2024 2023
Spain 7,078 7,051
Norway 4,975 5,259
Finland 4,653 4,504
Italy 4,317 4,283
Switzerland 3,437 3,355
Greece 2,650 2,818
Portugal 2,226 2,085
Sweden 2,059 2,078
Germany 1,371 1,220
France 1,218 1,182
Belgium 1,081 1,046
Hungary 1,003 1,059
United Kingdom 531 933
Denmark 891 861
Other countries 2,599 2,959
Total 40,089 40,693
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Note 28 Financial risk management
Financial instruments
Group Parent Company
SEK M Note 2024 2024 2023 2023 2024 2024 2023 2023
Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
Financial instruments
Financial assets valued at amortised cost (i) 31,874 31,490 44,983 44,171 45,118 45,645 41,996 43,365
Financial assets valued at fair value (ii) 16 16 324 324 16 16 324 324
Total /f_i.liga nancial assets 31,890 31,506 45,307 44,495 45,134 45,661 42,320 43,689
Financial liabilities valued at amortised cost (iii) 59,383 49,272 66,556 61,832 54,749 44,638 61,911 57,187
Financial liabilities valued at fair value 526 526 651 651 443 443 303 303
Total /f_i.liga nancial liabilities (ii) 59,909 49,798 67,207 62,483 55,192 45,081 62,214 57,490
On the balance sheet date, the following financial instruments
amount to:
Financial assets at amortised cost
Portfolio investments (i), (ii) 22,695 22,311 35,294 34,482 - - - -
Accounts receivable (i),(ii),(iv) 1,581 1,581 1,398 1,398 - - - -
Other receivables including accrued income (i),(ii), (iii)
(iv)
5,095 5,095 4,522 4,522 44,446 44,973 41,234 42,603
Cash and cash equivalents (i), (ii),(iv) 2,503 2,503 3,769 3,769 672 672 762 762
Total /f_i.liga nancial assets valued at amortised cost 31,874 31,490 44,983 44,171 45,118 45,645 41,996 43,365
Financial assets at fair value
Derivatives (ii) 16 16 324 324 16 16 324 324
Total /f_i.liga nancial assets 31,890 31,506 45,307 44,495 45,134 45,661 42,320 43,689
Financial liabilities at amortised cost
Long-term bank loans (iii) 12,231 12,001 14,885 14,868 12,231 12,001 14,885 14,868
Bond loans (iii) 37,439 27,558 44,273 39,566 37,439 27,558 44,273 39,566
Liabilities to credit institutions (iii) 1,030 1,030 694 694 1,030 1,030 694 694
Accounts payable (iii), (iv) 466 466 332 332 19 19 27 27
Other liabilities including accrued expenses (ii), (iii),
(iv)
8,217 8,217 6,372 6,372 4,030 4,030 2,032 2,032
Financial liabilities valued at amortised cost 59,383 49,272 66,556 61,832 54,749 44,638 61,911 57,187
Financial liabilities at fair value
Derivatives 61 61 303 303 61 61 303 303
Other liabilies 465 465 348 348 382 382 - -
Financial liabilities valued at fair value 2 526 526 651 651 443 443 303 303
Total /f_i.liga nancial liabilities 59,909 49,798 67,207 62,483 55,192 45,081 62,214 57,490
Notes:
(i) Financial assets valued at amortized cost include portfolio investments,
other long-term receivables, accounts receivable, client funds, other cur-
rent receivables, accrued income, cash and cash equivalents and, for the
Parent Company, also intra-Group receivables.
(ii) Financial assets and liabilities valued at fair value include derivative assets
and liabilities, deferred considerations related to acquisitions of shares
and other liabilities related to the acquisition of the minority interests in
certain Spanish and Greek subsidiaries. Derivatives are measured based
on valuation techniques that uses observable market data and thus fall
under Level 2 in the valuation hierarchy according to IFRS 13. Deferred
considerations and other liabilities are measured at fair value using non
observable market data and, therefore, fall under in accordance with level
3 in the valuation hierarchy according to IFRS 13.
(iii) Financial liabilities valued at amortized cost include non-current and cur-
rent liabilities to credit institutions, bond loans, commercial papers, client
funds payable, accounts payable, advances from clients, other current
liabilities, accrued expenses and, for the Parent Company, intra-Group
liabilities.
(iv) Current assets and current liabilities are expected to be realised and set-
tled in their normal operating cycle. They do not generate interest and do
not lose value due to the timing of settlement. The Group believes car-
rying value of the current assets and current liabilities represent their fair
value as of 31 December 2024.
v) Bank loans: Long-term bank loans balance represents the drawn-down
amount on a revolving credit facility (“RCF”). The RCF is repriced every
3-6 months, i.e., the interest rate re/f_l.liga ects current market conditions, fall-
ing under Level 1 input per IFRS 13. The Group applies present value
techniques using the Group’s weighted average cost of capital on the fore-
casted interest and principal repayments to reach fair value.
vi) The Parent’s long-term receivables from Group companies consist of
loans given by the Parent to its subsidiaries. Non-observation market data
are used, falling under Level 3 input per IFRS 13. The Group applies pres-
ent value techniques using the Group’s weighted average cost of capital
on the forecasted interest and principal repayments to reach fair value.
Financial risks and /f_i.liga nancial policies
Principles of /f_i.liga nancing and /f_i.liga nancial risk management
Intrum’s Group’s /f_i.liga nancing and /f_i.liga nancial risks are managed by the Board of
Directors and the Audit and Risk Committee in accordance with the treasury
policy established by the Board of Directors. The treasury policy contains
rules for managing /f_i.liga nancial activities, delegating responsibility, measuring
and identifying /f_i.liga nancial risks and limiting these risks. Refer to in the Corpo-
rate Governance section (pages 25 to 33) and the Risks and Risk Manage-
ment section of the Board of Directors Report (pages 39 to 45) for further
information.
Internal and external /f_i.liga nancial operations are concentrated in Group Trea-
sury in London, Stockholm and Oslo. This achieves economies of scale in
terms of pricing for /f_i.liga nancial transactions. Because Group Treasury can take
advantage of temporary surpluses and de/f_i.liga cits in the Group’s various coun-
tries of operation, the Group’s total interest expense can be minimised.
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Market risk
Market risk consists of risks related to changes in exchange rates and interest
rate levels.
Exchange rate risk
Exchange rate risk is the risk that /f_l.liga uctuations in exchange rates will nega-
tively a/f_f.liga ect the Group’s income statement, balance sheet and/or cash /f_l.liga ows.
The most important currencies for the Intrum Group, other than the Swed-
ish krona (SEK), are the euro (EUR), the Swiss franc (CHF), the British Pound
(GBP), the Hungarian forint (HUF) and the Norwegian krone (NOK).
The following exchange rates have been used to translate transactions in for-
eign currency in the /f_i.liga nancial accounts:
Year Ended Year Ended Average Average
Currency 31 Dec 2024 31 Dec 2023 2024 2023
CHF 12.17 11.98 12.00 11.82
EUR 11.46 11.10 11.43 11.48
GBP 13.82 12.77 13.51 13.20
HUF 0.0279 0.0290 0.0289 0.0301
NOK 0.97 0.99 0.98 1.01
Exchange rate risk can be divided into transaction exposure and transla-
tion exposure. Transaction exposure consists of net operating and /f_i.liga nan-
cial receipts and disbursements in di/f_f.liga erent currencies. Translation exposure
consists of the e/f_f.liga ects from the translation of the /f_i.liga nancial reports of foreign
subsidiaries and associated companies to SEK.
Transaction exposure
In each country, all income and most operating expenses are denominated in
local currencies, and thus currency /f_l.liga uctuations have only a limited impact on
the company’s operating earnings in local currency. National
operations seldom have receivables and liabilities in foreign currency.
Income and expenses in national currency are thereby hedged in a natural
way, which limits transaction exposure. The currency exposure that arises
within the operating activities is limited to the extent it pertains to interna-
tional collection operations. The subsidiaries’ projected /f_l.liga ow exposure is not
hedged at present. All major known currency /f_l.liga ows are hedged on a contin-
uous basis in the Group and the Parent Company through forward exchange
contracts.
Translation exposure
Intrum operates in 20 countries. The results and /f_i.liga nancial position of subsid-
iaries are reported in the relevant foreign currencies and later translated into
SEK for inclusion in the consolidated /f_i.liga nancial statements. Consequently,
/f_l.liga uctuations in the SEK exchange rate a/f_f.liga ect consolidated income and earn-
ings, as well as equity and other items in the /f_i.liga nancial statements.
The Group’s revenues (including discontinued operations) are distributed by
currency as follows:
SEK M 2024 2023
SEK 712 526
EUR 12,282 13,908
GBP 1,889 1,279
CHF 839 735
HUF 948 1,144
NOK 1,309 1,330
Other currencies 915 1,079
Total 18,894 20,001
An appreciation of the Swedish krona of 10 (2023: 10) percentage points on
average in 2024 against EUR would thus, all else being equal, have a/f_f.liga ected rev-
enues negatively by SEK1,228 M (2023: 1,391), against GBP by SEK 189 M (2023:
128), against CHF by SEK 84 M (2023: 73), against HUF by SEK95 M M (2023: 114)
and against NOK by SEK131 M (2023: 133), before the e/f_f.liga ects of hedging.
In terms of net assets by currency, shareholders’ equity in the Group,
including non-controlling interests, is distributed as follows:
SEK M 2024 2023
SEK 7,024 9,750
EUR 13,186 22,929
- EUR hedged through foreign currency loans -17,299 -27,951
+ EUR hedged through derivatives 5,196 6,881
GBP 1,811 2,086
- GBP hedged through derivatives - -1,468
CHF - 482
- CHF hedged through derivatives - -
NOK 2,842 4,266
-NOK hedged through foreign currency loans - -1,106
- NOK hedged through derivatives - -2,132
HUF 957 884
-HUF hedged through foreign currency loans - -
Other currencies 1,750 4,308
Total 15,467 18,929
All else being equal, an appreciation in the Swedish krona of 10 percentage points
as per 31 December 2024 against EUR would have a/f_f.liga ected shareholders’ equity
in the Group negatively by SEK-108 M (2023: -186), negatively against GBP by SEK
-181 M (2023: -60), negatively against CHF by SEK 84 M (2023: -48), negatively
against HUF by SEK -96 M (2023: -88) and negatively against NOK by SEK -284 M
(2023: -104).
The Group hedges part of its translation exposure by means of currency hedg-
ing measures, consisting of external loans in foreign currency and derivative
instruments. There is an economic relationship between the hedged balance
sheet items and the hedging instruments, in which the e/f_f_i.liga ciency of the hedge is
tested and adjusted monthly. The e/f_f.liga ects of the translation exposure and hedg-
ing measures have opposite values (negative/positive) and are reported under
Other comprehensive income. The hedging instruments amounted to SEK
13,347 M (2023: -27,026) at year-end. No ine/f_f_i.liga ciencies were reported during the
year regarding hedges of net investments in foreign operations.
Liquidity risk
Liquidity risk is the risk of a loss or higher-than-expected costs to ensure the
Group’s ability to ful/f_i.liga l its short and long-term payment obligations to outside
parties.
The Group’s long-term /f_i.liga nancing risk is limited by committed loan facilities.
The Group’s policy is that maximum 1/3 of the Group’s total debt can mature in
any 12 month rolling period.
In order to limit the Group’s liquidity, Group Treasury shall, at least, have avail-
able liquidity, or credit lines available, to meet contractual and expected port-
folio investments for the coming 90 days. As at year-end, the minimum liquidity
requirement was SEK 1,163 M (2023: 1,264). The Group has deposited its liquid
assets with established /f_i.liga nancial institutions where the risk of loss is considered
remote. The Group’s /f_i.liga nance function prepares regular liquidity forecasts with
the purpose of optimising the balance between loans and liquid funds so that the
net interest expense is minimised without incurring di/f_f_i.liga culties in meeting exter-
nal commitments.
As of 31 December 2024, the Group has the current liabilities on commer-
cial papers and bond loans standing at SEK 12,809 M (2023: 7,953). The table
below provides an analysis of the /f_i.liga nancial liabilities of the Group and the Par-
ent Company broken down according to the amount of time remaining until the
contractual maturity date. The amounts given in the table are the contractual,
undiscounted cash /f_l.liga ows.
As part of the successful implementation of the recapitalisation, which is
expected to be e/f_f.liga ective from H1 2025, the maturities structure will be extended
and the bond loans will mature in 2027 and the RCF will mature in 2028. The
implication is that after the recapitalisation the liabilities due within one year, as
presented in the table below, will be lower by SEK 13,839 M for both the Group
and the Parent Company.
Financial liabilities in the balance sheet – Group
SEK M
Within
1 year 2–5 years
Later than
5 years Total
31 Dec 2024
Lease liabilities 185 523 3 711
Long-term bank loans - 12,231 - 12,231
Bond loans 12,809 24,631 - 37,439
Liabilities to credit institutions 1,030 - - 1,030
Other current liabilities 8,692 - - 8,692
Other long-term liabilities - 1,880 88 1,968
Total 22,716 39,265 91 62,072
31 Dec 2023
Accounts payable and other liabilities 7,330 - - 7,330
Lease liabilities 198 418 21 637
Bank loans - 14,885 - 14,885
Bond loans 7,259 37,315 - 44,574
Commercial papers 694 - - 694
Total 15,481 52,618 21 68,120
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Financial liabilities in the balance sheet – Parent Company
SEK M
Within
1 year 2–5 years
Later than
5 years Total
31 Dec 2024
Long term bank loans - 12,231 - 12,231
Bond loans 12,809 24,631 - 37,439
Liabilities to credit institutions 1,030 - - 1,030
Other long term liabilities - 358 - 358
Liabilities to Group companies 2,416 24,343 - 26,759
Other current liabilities 1,389 - - 1,389
Total 17,644 61,563 - 79,207
31 Dec 2023
Accounts payable and other
liabilities
1,320 - - 1,320
Long term bank loans - 14,885 - 14,885
Bond loans 7,259 37,315 - 44,574
Commercial papers 694 - 694
Liabilities to Group companies 799 17,419 - 18,218
Total 10,072 69,619 - 79,691
Interest rate risks
Interest rate risks relate primarily to the Group’s borrowings, which amounted to
SEK 50,701 (2023: 59,852) on 31 December 2024. 70% (2023: 65%) of loans are
/f_i.liga xed rate and 30% (2023: 35%) are /f_l.liga oating rate. The Group’s loans have a /f_i.liga xed
interest term – currently about 16 months (2023: 20 months) for the entire loan
portfolio.
A 1-per cent increase in market interest rates during the year would have
adversely a/f_f.liga ected net /f_i.liga nancial items by approximately SEK 201 M (2023: 210).
A /f_i.liga ve-per cent increase would have adversely a/f_f.liga ected net /f_i.liga nancial items by
SEK 866 (2023: 1,052).
Intrum also holds cash in bank accounts which are positively impacted by
interest ratres as higher rates increase iterest on these balances.
Credit risks
Credit risk consists of the risk that Intrum’s counterparties are unable to ful/f_i.liga l
their obligations to the Group.
Financial assets that potentially subject the Group to credit risk include
cash and cash equivalents, accounts receivable, portfolio investments, out-
lays on behalf of clients, derivatives and guarantees. For /f_i.liga nancial assets
owned by Intrum, no collateral or other credit reinforcements have been
received, with the exception of a certain portion of the Group’s portfolio
investments. The maximum credit exposure for each class of /f_i.liga nancial assets
corresponds to the carrying amount.
Cash and cash equivalents
The Group’s cash and cash equivalents consist primarily of bank balances
and other short-term /f_i.liga nancial assets with a remaining maturity of less than
three months. The Group has deposited its liquid assets with established
banks where the risk of loss is considered remote.
Accounts receivable
The Group’s accounts receivable from clients and debtors in various indus-
tries, and are not concentrated in a speci/f_i.liga c geographical region. The Group’s
largest client accounts for less than 2% of revenues. Most accounts receiv-
able outstanding are with customers previously known to the Group and
whose creditworthiness is good. For an analysis of accounts receivable by
age, see Note 15.
Portfolio investments
As part of its portfolio investment operations, Intrum acquires portfolios of
consumer receivables and tries to collect them. Unlike its conventional col-
lection operations where Intrum works on behalf of clients in return for com-
missions and fees, in this case it assumes all the rights and risks associated
with the receivables. The portfolios are purchased at prices signi/f_i.liga cantly
below their nominal value, and Intrum retains the entire amount it collects,
including interest and fees. The acquired receivables are overdue and in
many cases are from debtors who are having payment problems. It is obvi-
ous, therefore, that the entire nominal amount of the receivable will not be
recovered. On the other hand, the receivables are acquired at prices signi/f_i.liga -
cantly below their nominal value. The risk in this business is that Intrum, at the
time of acquisition, overestimates its ability to collect the amounts or under-
estimates the costs of collection. The maximum theoretical risk would be
that the entire carrying value of SEK 22, 695 M (2023: 35,423) would become
worthless and have to be written o/f_f.liga . To minimise the risks in this business,
prudence is exercised in purchase decisions. The focus is on small and medi-
um-sized portfolios with relatively low average amounts, to help spread risks.
The average nominal principal value per case is approximately SEK 32,774
(2023: 35,084). Portfolios are normally acquired from customers with whom
the Group has had a long-term relationship. The acquisitions have gener-
ally consisted of unsecured debt, requiring relatively less capital and signi/f_i.liga -
cantly simplifying administration compared with collateralised receivables.
Since 2016, however, Intrum has also begun to acquire portfolios with under-
lying collateral, usually in the form of property mortgages. Intrum places high
yield requirements on the portfolios it acquires. Before every acquisition, a
careful assessment is made based on a projection of future cash /f_l.liga ows (col-
lected amount) from the portfolio. In these calculations Intrum bene/f_i.liga ts from
its extensive experience in debt collection and from the Group’s scoring
methods. Intrum therefore believes that it has the expertise required to eval-
uate these types of receivables. To enable acquisitions of larger portfolios
at attractive risk levels, Intrum has, on occasion, partnered with other com-
panies such as Pireus Bank and Ibercaja Banco to share the capital invest-
ment and return. The currency risk is attributable to the translation of the
balance sheet item Portfolio investments is limited due to currency hedg-
ing using loans in the same currency as the assets, and currency forwards. A
considerable proportion of the acquisitions take place through forward /f_l.liga ow
agreements – that is, Intrum may have previously agreed with a company to
acquire all of that company’s accounts receivable at a certain percentage
of their nominal value once they are overdue by a certain number of days. In
most of these agreements, however, Intrum has the opportunity to decline
to acquire the receivables if, for example, their quality decreases. Risks are
diversi/f_i.liga ed by acquiring receivables from clients in di/f_f.liga erent sectors and dif-
ferent countries. The Group’s purchased debt portfolios include debtors in
20 countries.
The Group’s total carrying amount for purchased debt is distributed as
follows:
Receivables by country, 2024 (2023)
UK, 23% (16%)
Spain, 16% (12%)
Norway, 14% (10%)
Germany, 7% (8%)
Hungary, 7% (5%)
Greece, 3% (7%)
Sweden, 3% (7%)
Other countries, 27% (35%)
Receivables by industry, 2024 (2023)
Telecom companies, 4% (5%)
Bank sector, 62% (65%)
Credit card receivables, 8% (12%)
Other /f_i.liga nancial operations, 5% (10%)
Other segments, 21% (9%)
Of the total carrying value on the balance sheet, 6% represents portfolio
acquisitions in 2024, 17% acquisitions in 2023, 18% acquisitions in 2022, 13%
acquisitions in 2021, 6% acquisitions in 2020 and 10% acquisitions in 2019.
The remaining 30% relates to receivables acquired in or before 2018.
Outlays on behalf of clients
As an element in its operations, the Group incurs outlays for court fees, legal
representation, enforcement authorities, etc., which can be charged to and
collected from debtors. In many cases Intrum has agreements with its clients
whereby any expenses that cannot be collected from debtors are instead
refunded by the client. The amount that is expected to be recovered from
a solvent counterparty is recognised as an asset in the balance sheet on the
line Other receivables.
Derivative contracts
The credit risk in the Group’s forward exchange contracts is limited because
the counterparty generally is a large bank or /f_i.liga nancial institution that is not
expected to become insolvent. On the balance sheet date, assets connected
to forward exchange contracts were valued at SEK 16 M (2023: 324), and lia-
bilities at SEK 61 M (2023: 303). The Group settles the derivative contracts on
a net basis with its counterparties.
The contracts have short maturities, typically one or more months. All
outstanding forward exchange contracts are restated at fair value in the
accounts, with adjustments recognised in the income statement. The pur-
pose of these forward exchange contracts has been to minimise exchange
rate di/f_f.liga erences in the Parent Company attributable to receivables and liabil-
ities in foreign currency.
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Outstanding forward exchange contracts at year end in the Parent
Company and in the Group comprise the following currencies:
Currency Local currency, buy Hedged amount, sell
CHF 28 -
CZK 118 -
DKK 69 -702
EUR 431 -11
GBP 110 -422
HUF - -24,050
NOK 810 -5
PLN 44 -1
RON - -4
SEK 7,728 -7,894
Payment guarantees
The Group o/f_f.liga ers services whereby clients, against payment, obtain a guaran-
tee from Intrum regarding the clients’ receivables from their customers. This
entails a risk being incurred that Intrum must compensate the customer for the
guaranteed amount in the event that the invoices are not paid on time. In those
cases where the guarantee comes into play, Intrum assumes the client’s claim
against its customer and takes over the continued handling of the case within
the Portfolio Investments area of operations. At the end of the year, the total
amount guaranteed was SEK 7 M (2023: 1). Intrum’s risk in this business is man-
aged through strict credit limits and analyses of the borrower’s credit status.
Note 29 Related parties
All transactions with related parties are conducted on market terms and at
arm’s length.
Related party transactions include transactions with the Board of Direc-
tors and senior executives, according to Note 31. The group has long-term
servicing contracts with all associates and joint ventures holding NPLs. The
group recognized servicing income from the associates and joint ventures
amounting to SEK 1,265 M (2023: 1,569), with an outstanding receivable of
SEK 47 M (2023: 82).
Although the Parent Company has close relationship to its subsidiaries,
see Note 34, it has no transactions with other related parties.
The Parent Company provides and receives services from and to its sub-
sidiaries. The Parent Company recognized income amounting to SEK 1,333 M
(2023: 1,616 ) from provision of services and recognized expenses amounting
to SEK 643 M (842 ), with outstanding receivable of SEK 1,727 M (2023: 741)
and outstanding payable of SEK 37 M (2023: 28).
Note 30 Subsequent events
Events after the balance sheet date
On the 8 January 2025, Intrum entered into a Swedish company reorganisa-
tion, which formed an important step in the implementation of the Intrum´s
Recapitalisation Transaction.
In March, the reorganization plan was announced and requested from
Intrum to the Stockholm District Court after a minority credit group agreed to
support the plan and withdraw their legal objections.
On April 15, the plan meeting will take place at the Stockholm District
Court. During the plan meeting, the concerned parties will have the opportu-
nity to vote on whether the Restructuring plan should be implemented or not.
Note 31 Average number of employees
Group
Men
Group
Women
2024 2023 2024 2023
Austria 11 16 20 18
Belgium 31 31 52 56
Brazil - 8 15
Czech Republic 20 23 40 45
Denmark 49 59 84 95
Estonia - 3 7
Finland 128 140 345 367
France 143 141 309 334
Germany 140 144 261 283
Greece 586 663 928 982
Hungary 157 176 297 318
Ireland 17 23 17 22
Italy 303 338 428 449
Latvia 150 179 50 91
Lithuania 80 129 211 286
Mauritius 50 50 134 135
Netherlands 62 69 65 66
Norway 192 216 241 275
Poland 151 160 217 240
Portugal 77 77 154 159
Romania 2 25 2 50
Slovakia 21 24 40 45
Spain 725 683 1,166 1,169
Sweden 167 167 226 234
Switzerland 87 88 103 108
United Kingdom 651 235 612 291
Total 4,000 3,867 6,002 6,140
The Parent Company had a total of 76 (82) employees in 2024, of which 34
(38) were women and 42 (44) were men.
Of the Group’s employees, 18% are younger than 28 years old, 31% are
30–39 years old, 31% are 40–49 years old and 23% are 50 years old or older.
Gender distribution of senior executives
2024 2023
Men Women Men Women
Board of Directors 4 3 5 3
Executive Mangement Team 14 2 14 3
Country Managers 14 1 16 1
Key Management Personnel 69% 31% 56% 44%
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Note 32 Share-based payments
Intrum has implemented long-term share-related incentive programs for
2022, 2023 and 2024. The duration of each of the incentive programmes is
three years. The purpose of the LTIPs is to align the interests and perspec-
tives of the senior executives with those of the shareholders and to create a
close commitment to Intrum’s long term value creation.
LTIP 2022
The program was o/f_f.liga ered to 76 key employees, which are awarded an equal
number of Performance Shares Series 1 and Performance Shares Series
2. The outcome of Performance Shares Series 1 is dependent on the Total
Shareholder Return (TSR) performance over time. The outcome of Perfor-
mance Shares Series 2 is dependent on the Cash EPS target performance
over time. The value ranges from 20% to 200% of base salary at the start of
the program (Andres Rubio does not participate in this plan). The duration of
the LTIP 2022 is three years and the allocation of the incentive is dependent
on continued employment until 1 January 2025.
LTIP 2023
The program was o/f_f.liga ered to 74 key employees who were awarded Perfor-
mance Shares Series 1. Group Management Team members are awarded also
Performance Shares Series 2. The outcome of Performance Shares Series 1 is
dependent on the TSR performance over time. The outcome of Performance
Shares Series 2 is dependent on the participants’ private investment in Intrum
shares and the TSR target performance over time. The value ranges from
55% to 105% of base salary at the start of the program (230% for the CEO).
The duration of the LTIP 2023 is three years and allocation of the incentive is
dependent on continued employment until 1 January 2026.
LTIP 2024
The program was o/f_f.liga ered to 14 key employees (members of executive man-
agement and key employees in the Intrum Group), who have the opportu-
nity to receive Cash Compensation (”Cash Compensation”) that was used to
invest in Intrum Shares. The allocation of the Cash Compensation was based
on a maximum value based on Annual Base Salary (“ABS”) at the o/f_f.liga er date
for each participant. The Cash Compensation for each participant amount
to a maximum of 100% to 250% of ABS. To receive the Cash Compensation
under LTIP 2024, participants make a private investment in Intrum shares
by allocating Quali/f_i.liga cation Shares to the program corresponding to a cer-
tain percentage of their annual base salary (10-20%). The duration of the LTIP
2024 is three years and both quali/f_i.liga cation and investment shares are required
to held until the 31 December 2026.
The Group treasury acquires shares from the market to transfer shares to
employees on completion of vesting and performance conditions. Shares
held by the Group and not yet issued to employees at the end of the report-
ing period are shown as treasury shares in the /f_i.liga nancial statements.
The Group is responsible for withholding an amount equal to employees’
tax obligations associated with the share awards under local tax laws. The tax
withheld is paid to the respective tax authorities on behalf of the respective
employees. The performance shares granted under the LTIPs include a net
settlement feature under which the shares necessary to settle the employ-
ee’s tax obligations are withheld. The Group settles share grants on a net
basis by withholding the number of shares with a fair (or market) value equal
to the monetary value of the employee’s tax obligation and only granting the
remaining shares on completion of the vesting period.
In 2024, there are no treasury shares transferred to the participating
employees in line with the reversal of the 2020 LTIP plan as the EPS tar-
get was not met at the end of 2022. There are also no accruals for cash-set-
tled share-based payment for the LTIP 2023 program as the TSR target is not
likely to be met by the end of the vesting period (01.01.2026).
The expense recognized for the plans during 2024 is SEK 34.7 M (2023:
21.2 M), of which SEK 0 (13 M) related to the 2021 plan, SEK 0 (5.6 M) related
to the 2022 plan, SEK 14.1M (2023: 2.6 M) related to the 2023 plan and SEK
20.6 M relates to the 2024 plan.
2022 and 2023 LTIP Incentive Plans
As at 31 December 2024, there were 986,088 share awards outstanding all of
which related to the 2022 and 2023 incentive plans.
The roll-forward of the instruments granted under the 2021, 2022 and
2023 incentive plans as well as their weighted average fair value is reported
in the below table (amount in thousands of SEK except for number of shares
and fair value):
2024 2023
Units
Grant
Date
Fair
Value
Amount
SEK M Units
Grant
Date
Fair
Value
Amount
SEK M
As at 1 January 1,423,875 72 102 454,952 205 93
Granted during
the year
- - - 989,241 13 13
Forfeited during
the year
-313,352 125 -38 -20,318 205 -4
Vested during the
year
-124,436 -263 -32 - - -
As at 31
December
986,088 32 32 1,423,875 72 102
For the 2023 Series 1 Plan, the fair value of shares on the grant date was been
calculated to be SEK 18.10 using a Monte Carlo simulation with Geometric
Brownian Motion given the following assumptions:
• Share price at grant of SEK 53.27
• Volatility 41.80% (Expected volatility was determined by using annual-
ized daily return volatilities of Company shares 26 September 2020 – 15
May 2023)
• Risk free rate of return 2.73% (interpolation has been used when estimat-
ing the risk-free rate, as there is no exact match between interest rate
terms and the time period of the plan)
• Discounted future dividends SEK 29.13
• Time horizon 3 years
The fair value of the 2023 Series 2 Plan shares on the grant date was calcu-
lated to be SEK 11.21 given the following assumptions:
• Share price at grant of SEK 53.27
• Volatility 41.80%
• Risk free rate of return 2.73% (interpolation has been used when estimat-
ing the risk-free rate, as there is no exact match between interest rate
terms and the time period of the plan)
• Discounted future dividends SEK 29.13
• Time horizon 3 years
2024 LTIP Incentive Plan
For the 2024 incentive plan, Group Treasury engaged a provider to acquire
1,539,889 shares upfront based on an average market price of SEK26 and a
value of SEK 41M. The costs of these shares are being charged as an expense
in the statement of income as employee services are provided. As the shares
have already been acquired by the relevant employees no shares are out-
standing at 31 December 2024. In addition, no assumptions similar to the
assumptions outlined above for the 2022 and 2023 LTIP Incentive Plans apply
for the 2024 Incentive Plan as the shares were purchased up front based on
the market rates that existed on the grant date.
Note 33 Terms and conditions of employment for key
executives
Guidelines for remuneration and other terms of employment for key
executives
During the year, the Group Management was streamlined to a smaller team
that formed the Executive Committee (ExCo) during 2024. In February
2025, the Executive Committee was renamed to Executive Management
Team (EMT). The Group Management Team (GMT) remains unchanged and
continues to support the EMT.
The 2024 Annual General Meeting adopted the following guidelines for
executive remuneration.
The guidelines apply to the CEO and other members of Intrum’s Executive
Committee (“ExCo”). The guidelines are forward-looking, i.e. they are appli-
cable to agreements on remuneration, and on amendments to remuneration
already agreed, entered into after adoption of the guidelines by the Annual
General Meeting 2024. These guidelines do not apply to any remuneration to
be separately resolved or approved by the General Meeting.
The guidelines’ promote the company’s business strategy, long-term
interests and sustainability
In short, Intrum’s business strategy is to deliver on the strategy presented at
the Capital Markets Day in 2023 and to continue to build its position as the
undisputed market leader within the credit management industry. For more
information regarding the company’s business strategy, visions and goals,
please see www.intrum.com.
A prerequisite for the successful implementation of the company’s busi-
ness strategy and safeguarding of its long-term interests, including its
sustainability, is that the company is able to recruit and retain quali/f_i.liga ed
employees. To this end, it is necessary that the company o/f_f.liga ers competitive
remuneration. These guidelines enable the company to o/f_f.liga er members of the
ExCo a competitive total remuneration.
Long-term incentive programs (“LTIPs”) have been implemented in the
company. Such LTIPs have been adopted by the Annual General Meeting
and are therefore excluded from these guidelines. The LTIP proposed by the
Board to be adopted by the Annual General Meeting 2024 is excluded for
the same reason, as well as similar programs to be adopted in the future. The
78Annual and Sustainability Report 2024About Intrum Governance and control Board of Directors’ Report Financial statements Sustainability information
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