Welcome to the Intrum Q2 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to Chief Executive Officer Johan Åkerblom and Chief Financial Officer Masih Yazdi. Please go ahead. Thank you, and good morning, everyone. Welcome to this second quarter report call. We start with the first page, where we want to do a couple of highlights. I would like to comment that this is the second quarter where we are executing on our new strategy. The number one priority when we introduced our strategy was how to improve the leverage and the balance sheet of the company. As you all know, a huge amount of work has been dedicated to do exactly so in Q2 with the capital raise and the EUR 2.4 billion portfolio sale. We have also seen the effects of that by Standard & Poor's and Moody's improving our credit ratings. The service leverage ratio on a pro forma basis has moved from 6.2 to 4.3, and the long-term target is 3.0. We also see that our operational transformation is continuing to pay off. Our costs are developing according to plan, and when looking at FTEs, which is one of the things that we are working with, making our processes automated or AI-field or just more efficient, has reduced by 8% year-on-year. Our total costs are currently at 11.9 on a rolling 12 months basis, and the target in 2030 is 10-11, depending on our Servicing income. The growth that we have in our traditional markets, we see the fourth quarter of growth. We see actually higher growth in this quarter than previous quarters, but it is not sufficient to offset the decline that we have in the specialized markets. Therefore, given that we had a negative growth in Q1 as well, even though it was higher than Q2, we do see that it is going to be more challenging to achieve the largely flat Servicing income that we want to achieve in 2026. The Servicing EBITDA margin remains at 25, and the target is 30%-35%. Stable margins on the Servicing. We are now at 25. We have been at 25 for, I think, the third quarter in a row. We have good organic growth in the traditional markets. We maintain a strong cost discipline, but we will now accelerate on the cost side. We will accelerate our progress, or sorry, our operational excellence program, and we will include more countries going forward. We have five countries right now that operates under it, and we will see how many countries we will have by the end of the year, but it will be a material increase versus today. To illustrate a little bit more the dynamics around our external Servicing income, you can see here that, first of all, the Savoy consolidation, it moves basically external income to internal income. So you have a - 1 there on a year-on-year comparison. The specialized markets, they go down 4%, of which organic growth is 6%. The traditional markets, they held 2% up on a total basis with an organic growth of 5%. The decline, as we discussed many times before, is in particular in Greece and Spain and partially in Italy. The U.K. has a pro forma that is impacted by slower and delayed new sales. It is actually slightly different dynamics depending on which country you look at. In the traditional markets, which is 45% of the income, we have organic growth of 5%, and most of them are growing, and we have a couple of top contributors. We do, however, see a challenge right now in Germany, where we have had issues both with onboarding of new clients, which has been taking much longer than expected, and we also have a bit of performance challenges with some of the existing clients. But we are doing a transformation to get this fully in line, and there could be more potential on how we stabilize that going forward. On the operational excellence program, we launched this in Q1. It is essentially a group-led program where we execute locally, and we move the traditional bespoke model into the next gen, which is much more standardized, which is automated, and where we have a lot of AI support to make it as efficient and effective as possible. We have an ambition to significantly increase the efficiency we have on the FTE cost base in scope, a 35%-40% ambition over the next three years. We utilize all the new technologies, but we also use older technologies to make sure that we get the best possible outcome, and we spend a balanced amount versus the outcome that we expect. Performance management is obviously very important when we then start tracking our lower cost to collect. The good thing is that the identified savings are actually exceeding the ambition. We see that the impact could be bigger than we anticipated from the beginning. But we will now, as said, accelerate this, expand it, and do more countries in parallel. We centered this, and I think we talked about this in Q1, there are three different buckets that are material, and that is where we focus. It is document management, it is email management or email automation, and it is also around how we deal with calls. Not everything, but a lot of things that we try to build are things that we can then scale across the different markets that we have. We do not build a bespoke solution. We build generic solutions, we implement them locally, and then we export them to the next country to get the scale and the synergies in the group. Investing we haven't talked much about but we did EUR 197 million, which is according to the previous ambition. We did it at 19%. We are still very disciplined in our execution. The collection has been 102 in the quarter versus 100 in Q1. What you see on the page is the rolling 12 months. The collection has actually improved Q on Q. Of course, now we need to ramp up with the capital raise. With the increased financial flexibility, we have an ambition to make these volumes higher. We are already working on a number of interesting deals, and we are confident that they will materialize in the second half. With that, I'll hand over to Masih to take you through the financials. Thank you, Johan, and good morning, everyone. I think Johan has gone through the highlights, but just to mention a couple of things. Obviously, income is coming down both on the back of negative growth in Servicing as well as the decay in investment book. Obviously, the plan going forward is to change trajectory on both of those by investing more and at some point getting organic growth in the Servicing business. I would comment on the cost side. It is down 2% year-on-year. It was down more in Q1. One thing to flag there is that the consolidation of Savoy Group is leading to about EUR 100 million higher costs this quarter compared to Q2 last year. I think that's something you should expect for the full year that it's going to be around that level per quarter which means that the cost level we are on track on the plans we have, and we will try to offset parts of this. Nevertheless, moving Savoy Group from the JV line to the income and cost line leads to this impact on the cost side. On the underlying development, we are fully on track with the plans and the targets we've set for the full year. I just mentioned also on the numbers that on the net financial expense line, we have a reversal from Q1 of about EUR 300 million, which is helping that line. Also as of May, we are doing hedge accounting on the FX swings we have. So in Q2, and also going forward the FX effect on our debt and the net financial expense line will be less than it has been historically. I think if you take Q2 as an example, we've offset about EUR 400 million of FX swings that otherwise would have materialized on this line. On the tax expense, it's a bit elevated this quarter. That's related to a one-off tax expense in Italy that is part of a tax audit that's dealt with the previous years, so back a few years. That's a one-off cost of almost EUR 100 million in the quarter. We're showing a positive net income, which is obviously good. But the ambitions are clearly higher for the future. On the Servicing side, we've gone through most of the numbers. There's a -3% fully, but the organic growth is -2%. The Savoy consolidation is - 1%, and FX is neutral in the quarter. On the cost side, that is coming down in line with the total income. Which means that overall year on year, if you look at the running 12 months, margins are stable at 25%. Obviously, given that it is a bit more challenging on the top line on Servicing to have the margin improvements that we are looking to get until 2030, we need to do a bit more on the cost side to keep this stable and moving in a positive trajectory. As Johan said, we see growth in traditional markets. That growth is higher than it has been in the last few quarters, but it is being more than offset by the specialized markets for now. On the Investing side, same kind of trends we have had previously as we keep having less new investments compared to what is amortizing, which means that we have a headwind on the income side. Going forward, we are planning to increase the investment pace and at some point offsetting that headwind. I think we see a better deal flow now. We see that we are engaging in more investments, but it will take a couple of quarters before you see that coming into the numbers as there is a delay between engaging in new investments and getting those signed and onboarded. So you should expect that they will take a couple of quarters before you see the investment pace actually picking up in the numbers we report. Also, obviously, due to the fact that there has been summer months and the capital raise was just executed in July. As Johan said, obviously, EUR 197 million of new portfolio investments, high blended IRR. Obviously, with the higher investment pace going forward, it is very likely that the blended IRR will start to move downwards, but we will be disciplined in our execution, and we will make sure that the IRR is nevertheless clearly above the cost of funding that we have, especially when we take into account the co-investments we do with Brook, where we typically get Servicing revenues as well, and we look at consolidated IRRs, including both the investment revenues as well as the Servicing revenues. That is it from me. I will ask Johan to summarize the quarter before we open up for Q&A. Yeah. So wrapping up, obviously the highlight of the quarter was the capital raise and the portfolio sale, even though both of them finalized fully at beginning of Q3. We have the continued headwinds in the specialized markets, and we are working there to make sure that we can protect as much of the bottom line as possible. It will be more challenging given the Q2 results to achieve the larger flat Servicing income in 2026. We are accelerating our operational transformation, which is also, I think, a tool in order to improve our growth trajectory going forward. Because the more competitive we become, the more attractive we become from the commercial standpoint. Servicing income outlook is slightly behind plan. We have stable adjusted EBITDA margins, and the quarterly collection index is higher this quarter than before. It is above our active forecast, and the investment pace is increasing post the capital raise. I think with that, we can open up for questions. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. Please limit your questions to two per turn. The next question comes from Patrik Brattelius from ABG. Please go ahead. Thank you, and good morning. My question is regarding Servicing, in particular in Greece and Spain, as you highlighted as challenging. Could you talk about how you view these challenges as temporary, or are there more structural issues that you believe can continue into 2027? We have talked about this before, but before you have yet said that you expect Servicing to be flat in 2026. Now you are a little bit softer on that guidance. Do you still think that these can turn around, or how should we think about this going into the second half of 2026? The fundamentals of the business in Spain and Greece are different. In Greece, we have a big platform on the back of the Greek crisis. We are working with one of the main banks in the country. Here in Greece, it is very much around making sure that we operate more efficiently and we protect the cash flow. There is a limited amount of new business to be made at this point. It could change. In Spain, I think there are two dynamics. One is we do have a big exposure towards the real estate, and we are Servicing a big real estate portfolio. We are the biggest real estate servicer in the country. As we all know, the real estate crisis in Spain is behind us, and the real estate market in Spain is booming, which means that we are very successful in executing on our Servicing mission. But the more we sell, the less sales we have ahead of us. On the real estate side, it is about, again, also restructuring and right-sizing that operations. On the NPL side, we do have room to grow. But we will not be able to offset the real estate decline with the NPL growth in the short run. Basically, those are the dynamics, and that is nothing new. That has been the case now for a longer time. But that is how it looks like. The other markets, there we have definitely room to grow and we are growing. As we said in the report, U.K. and Germany are two markets where we have been underperforming, and we need to turn that trend around. Thank you. My next question would be a little bit on this Investing side. On the slide, you highlighted, Johan, that you found interesting deal on the pipeline. Could you elaborate what makes them interesting and what you are primarily focusing on when you are going to allocate this capital from the capital raise going further? Is it portfolios or you are more focused on co-investment? Could you give some color there, please? It is both. We will continue to co-invest. We are working a lot with our main partner, Brook, and we also closed a deal in Q2 in Hungary with a co-investor. We think the Hungarian market has potential. After the change of government, we see that there are some reforms that can open up the investment space even more. But in general, we have always had an ambition to invest, but we have had limitations in terms of prioritizing our cash flow and our CapEx. Now we have much more flexibility. So I would not say that we are doing anything fundamentally different. It is just that we can be much more forward-leaning in our investment approach. But we will still stay disciplined. So it will be a mix of doing our own and doing with capital partners. I think the major difference is that now we can actually do larger deals with some of our bilateral partners on a standalone basis if we think that there is an attractive return. Those are the type of deals that we tried to resource before and keep the Servicing. Now we can actually bring them on our balance sheet. In terms of geographical mix, are there areas where you see better opportunities versus areas where you do not want to allocate capital at the moment as the competition is too high? Anything regarding that? No. I would say there is tough competition in most markets, and we are active in all markets, so no. As long as we are present and we have comfort in the underwriting, we are ready to do transactions. Okay. Thank you so much. That was all for me. The next question comes from Björn Olsson from SEB. Please go ahead. Good morning. Johan, in your [audio distortion], you flagged that you are accelerating your efficiency program given the weaker top line growth. Should we view this that are you changing the 2028 potential targets or are you rather steepening the curve path to reach those targets? Hi, Björn. I think I can take that one. If you look at the long term target we have on the cost side, we do say it is going to be somewhere between SEK 10 billion and SEK 11 billion, and we set that interval based on obviously having a, this is a very long term target and not knowing exactly how the income is going to develop until then. We at that point said that if income is higher, we will probably be closer to the SEK 11 billion, and if income is lower, it is going to be closer to SEK 10 billion. Now when we have had a couple of quarters where income is a bit behind plan, and we now see it is challenging to reach the target or the guidance we have given for the full year, then obviously that means that to any extent we change now in our trajectory, we are more moving towards the lower end of that target. But that is by 2030. Exactly how this trajectory will look like until then, it depends on business momentum to some extent, because the more income we generate, the more variable costs we will have associated with that. But I think you should see that as indications that the slightly softer top line means that we will need to have a trajectory towards the lower end of that target. Then in the next quarter or second half of the year, we will come back on the cost trajectory for next year and what we see in front of us. Here and now, what we are saying is that we are accelerating the program. I do not think you should expect any implications on the cost for 2026 on that acceleration. It is really just moving in more markets than we had planned into the transformational program earlier than we had planned, and therefore we should see a benefit of that post this year rather than already this year. But exactly what the benefit will be and how fast that will come, we will come back with. Okay, thanks. Are there redundancy costs associated with this? Should we expect this to actually have a negative impact on 2026 numbers, I guess slightly or? That is possible. I think we have said that on the back on the capital raise that if the capital raise with the financial flexibility that that gives us, we will look into whether we can accelerate any of the plans that we had. It is possible that that acceleration both leads to some investments, but also to get the efficiencies faster, it could lead to redundancy costs. But that is something we will then potentially come back with when that is more clarified. Okay, clear. On the Investing side, your amortization rate jumped to 43%. I guess it reflects the maturing portfolio. But should we expect to go to stay at this level or should it continue north or how should we view this trend? If we can increase the pace of investments, that will obviously have an impact on the amortization curve, depending on what type of portfolios we buy and how they pay back. I think the biggest impact in this quarter is probably on the back of Savoy, which has had an impact on the overall amortization rate. Okay. Thanks. The next question comes from Johan Ekblom from UBS. Please go ahead. Thank you very much. I just wanted to come back to the Servicing dynamics between Greece and Spain, and the rest of the group. If I look at your 25 annual report, Spain and Greece are a little bit more than a third of your external revenues. Can you help us dimension the slide you provided today on a forward-looking basis? So, whether it's next 12 months or by 2028, how much further headwind should we expect from Spain and Greece, so that we can try and see how that has developed? Because I think that slide is helpful, but it would be really useful to see how that's developed over time. Is the market getting smaller, and when do you expect that to finish? Yeah, I can try to answer that. Maybe we can give you a bit more disclosure in the future. It is correct that's the dynamic you have. I don't think you should expect any change in that headwind, especially in Spain. I think that headwind will continue. What we have and the task is to show organic growth that is really driven by not to a large extent sort of reducing the headwind in Spain, is more offsetting that headwind with stronger growth in the traditional markets than we've had historically. That's really the task we have. That's one dimension. The other dimension is obviously that assuming that Spain continues to decay, which it will, it will become a smaller share of the total revenues. What we need to do in the traditional markets in terms of growth becomes less and less moving forward, and it is going to be less in 2028 than it is in 2026. From that perspective, even though obviously it would be better to have a Spanish business that grows, it does not require as much growth in the traditional markets to offset that. I think Greece is more stable. It will probably also have a slightly negative growth rate, but it is not to the extent that you have in Spain, so the dynamics there are quite a bit different. In U.K. is very different in the sense that we are not doing extremely well in the U.K. today. I do not see that as a specialized market in the same kind of way you would look at Spain. It is a market where we can grow going forward. It is a different type of business. Do you think Spain will be in line with Most of your countries are kind of half a billion, EUR 2 billion in revenues. Spain is EUR 2.5 billion or was EUR 2.5 billion last year almost. Is that where we are heading or is Spain structurally a much larger market, even with the current dynamics? Spain will become less of an income contributor in the future than it has been in the past. That is clear. That will also then make the headwind will have less of an impact overall. Yeah. We are basically rebuilding Spain, and Spain will not have as profound impact or part of the overall income as it had in the past. There are different dynamics. If you take Greece is a strong contributor to the group in terms of both income as well as margin and profit. Whereas Spain is a big contributor on the income side, but not on the margin side. It is actually a negative effect on the margin side. So a smaller Spain is clearly negative on the income side, but it does not have the same kind of magnitude on EBITDA, for example, as Greece would have. Yeah. Secondly, Bloomberg reports this morning you have launched tenders on your 2027 and 2028 bonds. Can you update us on what you are doing and how we should think about the refinancing story over the next six to 12 months? Yeah. This is very much in line with the refinancing strategy that we have. We have obviously refinanced the one and a half liens for 2027. That is done and extended to 2031. But we have the second lien bonds outstanding, and we are planning to, with the tender we are doing today, to reduce that outstanding amount. We will use some of the liquidity we have today to do that, and we will use the remainder to buy back 2028, the second lien as well. That will help us from an interest expense perspective, because obviously the coupon we are paying on those bonds is higher than the interest we get on deposits when we have liquidity or the interest we pay on the RCF when we draw on that one. This is a way of reducing the interest expense, but also a way of managing the shorter maturities. You should expect these kind of actions to come in the next six to 12 months. In addition to the discussions we will have with banks on the RCF. That is something that is ongoing and we will continue to work on that as well. The priorities now is to minimize the shorter term maturities, especially the 2027, and then obviously refinance the RCF at some point. Thank you. The next question comes from Ermin Keric from DNB Carnegie. Please go ahead. Good morning. Thanks for taking the questions. You mentioned that 35%-40% FTE cost base reduction in targeted operations. Could you quantify that more in relation to the total FTE base or something to get a better sense of how much we are expecting to take out, please? Yeah. The best guidance we can give you, this program and what we are doing in the program is in line with the cost target we have given for 2030. I think you can, on the back of the envelope, calculate what it requires in terms of FTE reduction to get to that level. Obviously, there are other factors you have to put into account here. One is salary inflation for the FTEs we will have at that point in time until then, and you have also some investments we will have to do. But we have talked about the automation we need to do in operations. It will mean that we will be fewer FTEs in the operations business. Clearly fewer, I would say, by 2030 than we are today. In actual numbers, don't want to give any clear numbers on it, but it's a large share of the part of the operations that this is targeting. But in total, we have about 6,000 people in operations today, and automating those processes would lead to that FTE number coming down fairly significantly. Got it. On the more short term, you highlighted how Savoy has increased the cost base by, I think you said EUR 100 million. The full year guidance you had for costs down 5%, that still stands though, even including Savoy, or is that changed? Well, the underlying cost, that clearly still stands. We have an ambition to offset some of that technical increase that we get from Savoy now being consolidated. Not completely sure that we'll be able to offset the full amount. I think for us, it's really the underlying cost development that we look into and what kind of underlying cost base we go into in 2027 that we look at. But that change in accounting could be difficult to fully offset in 2026. Good. Then I see that is one of the markets you've started the operational excellence program, and you also mentioned you've had some performance challenges there. In Germany. Is that in any way connected? Is there a risk that these excellence initiatives are actually going to hurt your collections? No. I think that the operational excellence program is actually a way for us to improve the processes locally. The challenges we've had are more of an IT infrastructure basis. We are also running a migration in Germany, and that migration has taken longer than we expected, and that has an implication then on how we can optimize our processes. The idea is to move from a more unstable environment with a lot of specialized process and bespoke solutions to a standardized and stable environment. Last question, just on Germany that you say that it's been longer onboardings. Should we read into that in any sense that you have a backlog of clients or contracts that you will be able to onboard when that's done, so that should accelerate the organic development there? Or is it more when you've done the program, then you've been able to go out and win contracts by being more competitive? We do have a number of clients that we are working with. The question is, and we have a continued growth ambition, but when we see that the platform is not as stable as we would want it to be, we have lower ambition on onboarding of clients because we don't want to take too much on and then not be able to deliver. I think to answer your question, there is a pipeline, but right now the pipeline is not being filled up because we're being careful to take on additional new clients as long as we're in the stabilization phase. But we think there is a big potential in Germany generally. Good. Thank you. The next question comes from Corinne Cunningham from Autonomous. Please go ahead. Good morning, everyone. A couple of debt related questions, please. So just on the tenders that were announced this morning, what sort of size are you thinking of for the debt element? And how much in EUR for the RCF redemption? And would you mind just going back through what you were talking about with the FX hedges and how that's affecting the interest cost, please? Thank you. Yeah. I do not know what the release this morning said, but you will see that when that comes out when it comes to the normal amounts. We are doing a tender on the 27s at a fixed amount, and then we are doing a tender on the 28s for the remaining part. We will have to see what the uptake is when it comes to that. This is the first one we do with the. We are using the proceeds from the Orange sale really to do this tender. We will see what the uptake is on the prices that we feel comfortable buying back at. Then, yeah, we will see where that goes, and then we will probably do several of these tenders going forward as well with the liquidity that we generate. You will be updated on the RCF and the sizing of it when we come to our Q3 report as that is something that we have done in July with the capital raise proceeds as well as the Orange sale. That is something we do not disclose here now. Annie, do you want to take the FX hedges? Yes. So in terms of the FX. Sorry, did you just want to know what kind of thing that we did? Can you just repeat that question? Yeah, interested in the interplay between that and the interest. I think you said interest quarterly interest cost came down because of the hedges. Just wanting to understand how they work in play in the P&L, please. Yes. Well, that was actually the financial net, and the FX impact. That's the interplay rather than the interest cost as such. But essentially what we've used is our EUR net investments in the subsidiaries and matched that with our external EUR loans. Therefore, we have taken down that FX exposure meaningfully and significantly. Then what's remaining really is our exposure to non-EUR currencies. If I can just ask one follow-up question. On the Savoy Group joint venture, are there any plans to do the same with other JVs? There are no plans at the moment. Thank you. The next question comes from Patrik Brattelius from ABG. Please go ahead. Hi. Just a short follow-up. I note that the presentation material and all the appendix information has been removed in the Q2 presentation. Is there a reasoning behind this? Will they be released somewhere else? Could we expect this going forward as well? No. That is just a mistake. We will add that back in probably when we PDF it. Thank you. The next question comes from Robert Dinic from DNB Carnegie. Please go ahead. Good morning, and thank you for taking my question. Just one more follow-up on the tender offers and going forward. Will you need some sort of new consent from any of the creditors to do more tender offers above par? No. Not when it comes to the tenders we are doing in the way we are doing it. Okay, will the focus then be on tender offers rather than RCF repayment? Sorry, can you repeat that, please? Will the focus coming months be on tender offers of the short-term bonds rather than paying down the RCF? Well, we will do more tenders, and how we deal with the RCF, that is something we will do at the same time. We will not exactly sort of say how we deal with the different parts. That is something we want to have some flexibility when it comes to how we deal with it and at what timing. Okay. Thank you. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. Thank you for the questions. Thank you for taking the time. And thank you for listening this morning. We will keep in touch. Have a lovely Friday. Thank you. Bye.