Yfi t tYear of investment - Welcome to Investor AB · > Yfi t tYear of investment: 2008 > Share of...
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> Y fi t t 2008 > Y ear of investment: 2008 > Share of capital/votes: 57%/50% Mölnlycke Health Care Gambro & C idi BCT 3 Scandinavia > Value of holding: SEK 3.293 m. > Serving on the Board: Börje Q1 2010 CaridianBCT Serving on the Board: Börje Ekholm and Petra Hedengran > Other owner: Altor Swedish Orphan Biovitrum Lindorff A leading credit management company in the Nordic region with a growing European presence. Lindorff has offices in Denmark, Estonia, Finland, Germany, Public Latvia, Lithuania, the Netherlands, Norway, Russia, Spain and Sweden. The Lindorff Group The Lindorff Group Investor Capital Markets Day Investor Capital Markets Day May 18 2010 Endre Rangnes, CEO Lindorff Group Endre Rangnes, CEO Lindorff Group This presentation is solely for the use of Lindorff Group and companies associated with Lindorff Group. No part of it may be circulated, quoted or reproduced for distribution without prior written approval from Lindorff Group. This material was used during an oral presentation; it is not a complete record of the discussion. May 18, 2010 Professional Customer-oriented Performance-oriented Caring
Transcript of Yfi t tYear of investment - Welcome to Investor AB · > Yfi t tYear of investment: 2008 > Share of...
> Y f i t t 2008> Year of investment: 2008
> Share of capital/votes: 57%/50%Mölnlycke Health CareGambro &
C idi BCT
3 Scandinavia
> Value of holding: SEK 3.293 m.
> Serving on the Board: Börje Q1 2010
CaridianBCT
Serving on the Board: BörjeEkholm and Petra Hedengran
> Other owner: Altor
Swedish Orphan Biovitrum
Lindorff
A leading credit management company in the Nordic region with a growing European presence. Lindorff has offices in Denmark, Estonia, Finland, Germany,
Public
p p , , , y,Latvia, Lithuania, the Netherlands, Norway, Russia, Spain and Sweden.
The Lindorff GroupThe Lindorff Group
Investor Capital Markets DayInvestor Capital Markets Day
May 18 2010
Endre Rangnes, CEO Lindorff GroupEndre Rangnes, CEO Lindorff Group
This presentation is solely for the use of Lindorff Group and companies associated with Lindorff Group. No part of it may be circulated, quoted or reproduced for distribution without prior written approval from Lindorff Group. This material was used during an oral presentation; it is not a complete record of the discussion.
May 18, 2010
Professional Customer-oriented Performance-oriented Caring
Agenda
The Lindorff storyThe Lindorff story
Financial results
Key Initiatives for 2010
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The Lindorff Group
Li d ff A l di E id f d btLindorff; A leading European provider of debt-related administrative services
Net revenues; € 283 (IFRS) million in 2009
2200 employees in Norway, Finland, Sweden, Denmark, Estonia, Latvia, Lithuania, Russia, The Netherlands Germany and SpainNetherlands, Germany and Spain
Owners; Altor Equity Fund (50%), Investor AB (50%)
M i I d t iMain Industries: Financial institutions, Insurance, Telecom & Utilities, Retail and SME.
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Lindorff; A Nordic market leader with growing international footprint...
•Norway•Norway
##
•Norway
#
No 1 or 2 market position
New market entries, in build up• #1 Debt collection and
support services• Market share 35%
• #1 Debt collection and support services
• Market share 35%
• #1 Debt collection and support services
• Market share 35%•Finland•Finland
• #1 Debt collection services• Market share 41%• #1 Debt collection services• Market share 41%
•Finland
• #1 Debt collection services• Market share 41%
•Sweden•Sweden•Sweden
•Russia•Russia
• Debt collection servicesN k t t
• Debt collection servicesN k t t
•Russia
• Debt collection servicesN k t t
Market share 41%Market share 41%Market share 41%• #1-2 Debt collection and
support services• Market share 18%
• #1-2 Debt collection and support services
• Market share 18%
• #1-2 Debt collection and support services
• Market share 18%
•Denmark•Denmark•Denmark
• New market entry• New market entry• New market entry
•Baltic•Baltic
• #1 Debt collection services• #1 Debt collection services
•Baltic
• #1 Debt collection services
• #2 Debt collection and support services
• Market share 10%
• #2 Debt collection and support services
• Market share 10%
• #2 Debt collection and support services
• Market share 10%
•Netherlands•Netherlands•Netherlands
•Germany•Germany
• Debt collection services• Debt collection services
•Germany
• Debt collection services
• Market share 36%• Market share 36%• Market share 36%• #2 Debt collection and
support services• Market share 15%
• #2 Debt collection and support services
• Market share 15%
• #2 Debt collection and support services
• Market share 15%
S iS iS i • New market entry• Market share 1%• New market entry• Market share 1%• New market entry• Market share 1%
•Spain•Spain
• Debt collection services• New market entry• Debt collection services• New market entry
•Spain
• Debt collection services• New market entry
5 Note: Market share is defined by revenues from 3rd party collection and purchased debtSource: Lindorff
From a Norwegian to a European company
SpainLaunched second greenfield operation for LindorffAdded Aktiv Kapital operation
2009
2008foo
tpri
nt
Spain Added Aktiv Kapital operation
RussiaInvestor AB
First greenfield start up for Lindorff GroupInvestor AB takes 50% share in Lindorff Group
2008
The Entry into Continental Europe
2007
Eu
rop
ean
f
GermanyAcquisition of Dausend Group and Aktiv InkassoEstablished position in Europe’s largest NPL market
Netherlandsy p
Acquisition of Transfair
MatchBroadened the product and service
h i th h i h t f d t
2005
er
Sweden Large portfolio acquisitionsOutsourcing of entire bank internal units
2003
Match chain through enrichment of data
2005
No
rdic
lea
de
Lindorff
Finland Acquisition of Contant
2003
2003
Bu
ildin
g t
he
Lindorff acquired by Altor Equity Partners in NorwayLindorff -Norway
B
...a full range of products and services...
Portfolio
acquisition
Credit Invoicingservices
Debt collection
---------------
Pre-legal / Legal
Surveillance & recovery
q
edit Credit information
Scoring and credit ces Invoicing Services
A/R management egal Reminder services
Customer recovery ce &
ve
ry Surveillance and recovery ti
on Acquisition of
whole portfolios
Cre Scoring and credit
CRM solutions
Data quality
Solutions
voic
ing
Ser
vi A/R management
Loan administration
Accounting
Consumer services
Co
llec
tio
n /
Le Customer recovery
Pre-legal collection:
•Phone•Letter•Street collectionLegal collection:
Su
rvei
llan
cR
eco
v
Debt reconstructuring
Debt recovery
tfo
lio
acq
uis
it whole portfolios
Financing/factoring
Inv
Deb
t C Legal collection:
•Bailiff•Salary deductions
Po
rt
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Purchased debt from Financial institutions is important for revenue and profit growth
European receivables management revenue and profit poolEuropean receivables management revenue and profit pool
~51%
Revenue and profit pool (as % of total EUR millions)
Financialservices ~68%
~26%
~14%
Revenue
EBITA
Revenue EBITARevenue EBITA
Trade ~8%
~10%
EBITARevenue
~15%
Revenue
~9%
EBITA
3rd party collection Portfolio acquisition
EBITARevenue Revenue EBITA
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Key European players
Financialservices
Cabot1st Credit
Lindorff has a unique competitive position
The only large collection company with a strong position in bank/finance
Substantial share of Nordic bank’s outsourced debt collection
Strong track record within telecom, utilities, retail and public sector
Extraordinary reputation and strong track
Trade
Extraordinary reputation and strong track record of handling debtors in a highly professional manner
Portfolioacquisition
3rd party collection
9 Source: Company reports; Lindorff; McKinsey analysis
Strategic Intent
Overview of selected public collection companies
NordicPortfolio Rec.
- 5 companies considered comparable to Lindorff
Topline(1)
CAGR2006-2009
USA
Nordic
Encore capital
Intrum Justitia
Lindorff Group
Size = Revenues(2009 revenues)
Lindorff Group
Asset Acceptance
Aktiv Kapital
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2009 EBITdA margin(2)
(1) Growth in gross collection(2) EBITdA margin = EBITDA excluding portfolio depreciation and write-offs / Gross collections
Good underlying growth in the number of debt collection cases- example Norway and Sweden
Signficant increase in the number of t ll ti i N
...and the Swedish bailiff system h i il th
’000 cases
’000 cases
cases to collection in Norway...
Norway1
has seen similar growth
Sweden2
(1) Number of cases to legal collection, The Financial supervisory board of Norway
I. Credit overhang
II. Increased outsourcing
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Financial supervisory board of Norway(2)Number of cases received by the Swedish Bailiff System (source) III. Increased market effectiveness
Our strategy
Competitive Advantage Market Participation Objectives & Plan of Actions
Export the Lindorff business
GeographyFull European coverageDrive market consolidation
Operational Capabilities
Extensive Product Range
Competitive Advantage Market Participation Objectives & Plan of Actions
pmodel to Europe
Operational Capabilities
Cross-Border Innovation
BPO Experience
CustomersBank, Finance, InsuranceTelecom/UtilitiesRetail/Public Sector
Grow in established markets
BPO Experience
Reputation & Brand Equity ProductsComprehensive ORM value chain
SME
Continuous operational
chain Leverage cross-product synergiesCustomer-driven innovationBPO
Integrated Mgmt Platform
I t ti l C t B
Complementary Assets
pimprovementPricing
Premium pricing for superior value
International Customer Base
Access to Capital
Agenda
Th Li d ff tThe Lindorff story
Financial results
Key Initiatives for 2010
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Lindorff Group – Results 2009 and Q1 2010
Financial results
-3% +7%
283291
72-18%
Net sales (1) 22
8176
+67%
5972
20092008
Net sales (1)
EBITDA
EBITDAmargin
25% 21%
Q1-2010
22
Q1-2009
13
EBITDAmargin
17% 27%
Key highlight - 2009
• Revenues in 2009 in line with the 2008 figures
margin margin
Key highlight – Q1 2010
• Significant increase in Capital resultsgdespite tough market conditions
• Margins still healthy – however - slightly lower than for 2008
g p
• Higher solution rates and strong case inflow in third party collection
14 (1) Revenues minus portfolio depreciation
Significant growth in the number of new collection cases and a solid build-up of collection fees in stock
# cases ’000 30% Increase in case volume from 2008-2009
ILLUSTRATIVE EXAMPLE –NORWAY
800
600
1.000
2008
2009
2010
400
200
0
AugJulJunMayAprMarFebJan DecNovOctSep
1,30
BNOK15 % Increase in the stock of collection fees in the last 26 months
1,25
1,20 +15%
1,15
0,00Nov 08
Oct 08
Sep 08
Aug 08
Jul 08
Jun 08
May 08
Apr 08
Mar 08
Jan 08
Jan 10
,Feb 08
Feb 10
Dec 09
Nov 09
Oct 09
Sep 09
Aug 09
Jul 09
Jun 09
May 09
Apr 09
Mar 09
Feb 09
Jan 09
Dec 08
Lindorff Group – Results 2009
Scandinavia 52%*%
ECE 22%*
50,3% 49,4%
uti
on
even
ue
dis
trib
u
Continental Europe 20%*
50,6%49,7%
Re
2009
2008 Revenues Capital
Revenues 3PC
* As percentage of total Group revenues
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Agenda
Th Li d ff tThe Lindorff story
Financial results
Key Initiatives for 2010
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Key initiatives for 2010
• Initiatives for organic and M&A• Initiatives for organic and M&A• Initiatives for organic and M&A growth
• Initiatives for organic and M&A growthGrowth
• Initiatives targeting operational efficiency and effectiveness
• Initiatives targeting operational efficiency and effectivenessMargin improvements
• Strengthening of systems and organization to deliver on financial and operational targets
• Strengthening of systems and organization to deliver on financial and operational targets
Platform improvements
Summary
Huge opportunities to build a profitable ... we are well-positionedg pp pbusiness...
• Huge amounts of NPLs in 2009
... we are well positioned
• Ability to deliver on the entire value chain
• Increased pressure for FI to sell portfolios
• Increased collection volumes
• Increased readiness to outsource
• Successfully built portfolio acquisition business
• Exceptional track record in Nordic FI Increased readiness to outsource segment
• Secured funding and strong owners
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