ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...

GOODWILL
The Group’s goodwill amounted to SEK
2,152.5 M, compared to SEK 1,825.3 M as of
December 31, 2009.
The change is attributable to the acquisition
of Aktiv Kapital’s Nordic credit management
operation in the amount of SEK 429.2
M and Nice Invest Nordic in the amount of
SEK 39.0 M, as well as exchange rate differences
of SEK –141.0 M.
NON-fINANCIAL EARNINGS INDICATORS
Employees
The average number of employees during
the year was 3,099 (3,372). The number of
employees decreased mainly in the United
Kingdom, Spain and Hungary. Employee
turnover during the year was 24 percent (25).
Women accounted for 63 percent (63) of the
employees during the year. The percentage of
employees with college-level degrees was 30
percent (28).
For more information on the employees and
salaries and other remuneration, see also Notes
28 – 32 and page 25 in the Annual Report.
Northern Europe
Central Europe
Western Europe
Employees by geographical region, %
Social responsibility and the environment
The Group continues to pursue its corporate
social responsibility (CSR) work. See page 24
in the Annual Report.
The purpose of running a business is to
provide shareholders with a return on their
investment. Striving for profitability helps to
ensure a company’s long-term survival. In addition
to this, Intrum Justitia has an important
mission as a catalyst for a sound economy
where businesses can receive and grant
credit. With its credit management services,
the company is helping to make business
easy, fair and secure, and is thereby promoting
a sustainable economy. In a general sense,
Intrum Justitia’s business objectives coincide
with society’s sustainability goals. The company’s
business activity and sustainability
work are, from this perspective, identical.
Intrum Justitia follows the OECD guidelines
for multinational corporations.
Business ethics
Intrum Justitia works according to a strict
code of ethics which is unique in the CMS
industry. The code stresses respectful relationships
with creditors and debtors, and
fair payment arrangements between Intrum
Justitia’s clients and their customers.
In Intrum Justitia’s code of ethics, paying
close attention to what is prescribed by law,
respecting the integrity of the debtor in all
situations, and ensuring information security
for all parties involved, as well as conducting
all credit management and receivables work
in a professional way, i.e. efficiently and accurately,
are all clear norms.
Working conditions
A sustainable and commercially successful business
relies on skilled and motivated employees.
The Group has a high level of ambition in the
area of human resources, setting its sights on
attracting, developing and retaining the best
people in the market. Part of Intrum Justitia’s
vision is to be a true people company. The employees
have the right to secure and healthy
workplaces, as well as fair compensation in line
with market levels. Men and women are given
the same opportunities. The goal in recruiting
managers is to find the most competent and
qualified candidates regardless of gender. No
employee may be submitted to discrimination,
nor is any form of sexual harassment tolerated.
All employees have the right to organize and
join unions as well as to negotiate collectively
if they wish, although they also have the right
to decline union membership.
Environment
The environment is a topical issue, but it is also
complex in that a balance is required between
various environmental risks and interests.
While Intrum Justitia naturally wants to help
improve the environment, it does not claim to
have answers to all of the questions regarding
environmental priorities.
Intrum Justitia does not have any operations
in Sweden that are subject to licensing or reporting
requirements according to the Environmental
Code. The Group operates in the
service sector and its operations are therefore
considered to have limited environmental impact.
Environmental requirements are applied
in each country and are at least equivalent to
local environmental legislation to the extent
they apply to the Group’s operations.
Intrum Justitia works to systematically improve
efficiencies in its energy consumption
and travel, thereby reducing the company’s
environmental footprint. The Group’s policy
includes encouraging alternatives to transport
and travel, such as conference calls and
Board of Directors’ report
video and web conferences. Regionalization
has also reduced the need for travel within the
Group. Through environmentally adapted
procurement, improved recycling processes
and reduced waste volumes, Intrum Justitia is
reducing its environmental footprint as well as
its costs.
MARKET OUTLOOK
We are witnessing a slow macroeconomic
recovery in Europe with significant differences
between regions. Intrum Justitia has
a better chance now of solving customers’
(debtors) financial problems than at the
peak of the global financial crisis. Although
collectability is not back at the level that existed
before the financial crisis, the situation
has stabilized.
We are seeing an increase in demand for
integrated credit management and financial
services. There is a growing need among our
clients for a stronger and more predictable
cash flow. The need for more options to finance
working capital is also growing.
We believe that Intrum Justitia’s strategic
focus on an expansion of credit management
services connected to risk-reducing and financing
services based on a strong, marketleading
collections foundation, is well-suited
to developments in the market. We are anticipating
considerable demand for these types of
services in the years ahead.
The Group’s acquisitions of small and medium-sized
portfolios of overdue receivables
are in the long term expected to amount to
around SEK 800 M per year. This does not
include individual acquisitions of larger portfolios.
Intrum Justitia has a long-term investment
strategy with a low risk profile, the stability
of which was demonstrated during the
financial crisis.
fINANCIAL OBJECTIVES
Intrum Justitia’s financial objectives are to
reach organic growth of 10 percent per year
and generate pre-tax earnings which are at least
in line with annual organic growth. Moreover,
the Group will achieve an annual return on
investments in the Purchased Debt operation
of at least 15 percent, The net debt/equity ratio
(interest-bearing net debt as a percentage
of shareholders’ equity and minority interests)
will not exceed 150 percent over the long term.
Intrum justitia will also actively seek opportunities
to grow through selective acquisitions.
In 2010 organic growth was -0.8 percent
and pre-tax earnings increased by 8.7 percent
compared to the previous year. Return on
capital invested in the Purchased Debt service
line amounted to 16.3 percent. The net
debt/equity ratio was 85.1 percent at the end
39