collector ab - interim report january-june 2020 · collector ab (publ) 556560-0797, interim report...

INTERIM REPORTJANUARY-JUNE 2020

1Collector AB (publ) 556560-0797, Interim report January–June 2020

Interim report January-June 2020

EVENTS AFTER THE END OF THE PERIOD

• Marcus Hansson informed Collector on July 2 that he had decided to, with immediate effect, leave the Board of Directors

HIGHLIGHTS SECOND QUARTER OF 2020 (COMPARED TO THE SECOND QUARTER OF 2019)

OPERATING PROFIT April–June 2020

102SEK MILLION

LOAN PORTFOLIO 30 June 2020

28,970 -2 %SEK MILLION

TOTAL INCOME April–June 2020

497 -7 %SEK MILLION

CET1 RATIO 30 June 2020

13.8 % +2.4 percentage points

NET PROFITApril–June 2020

76 SEK MILLION

TOTAL CAPITAL RATIO 30 June 2020

15.9 % +1.7 percentage points

SECOND QUARTER OF 2020 (COMPARED TO THE SECOND QUARTER OF 2019)

• The loan portfolio decreased by 2 % to SEK 28,970 million (29,533)• Total income decreased by 7 % to SEK 497 million (536)• The C/I ratio amounted to 43.3 % (42.4)• The credit loss level amounted to 2.5 % (1.4)• Operating profit amounted to SEK 102 million (209)• Net profit amounted to SEK 76 million (159)• Earnings per share amounted to SEK 0.37 (1.55)• The CET1 ratio amounted to 13.8 % (11.4) and the total capital ratio amounted to 15.9 % (14.2)

JANUARY-JUNE 2020 (COMPARED TO JANUARY-JUNE 2019)

• The loan portfolio decreased by 2 % to SEK 28,970 million (29,533)• Total income decreased by 5 % to SEK 989 million (1,045)• The C/I ratio amounted to 46.0 % (42.8) and the adjusted C/I ratio amounted to 44.5 %• The credit loss level amounted to 2.6 % (1.3) and the adjusted credit loss level amounted to 2.3 %• Operating profit amounted to SEK 146 million (411) and adjusted operating profit amounted to

SEK 211 million• Net profit amounted to SEK 107 million (316)• Earnings per share amounted to SEK 0.69 (3.08)• The CET1 ratio amounted to 13.8 % (11.4) and the total capital ratio amounted to 15.9 % (14.2)


Key ratios*, Group, SEK million Q2 2020 Q2 2019 ∆ Jan-June 2020 Jan-June 2019 ∆ FY 2019

INCOME STATEMENT

Net interest income 513 528 -3 % 1,027 1,035 -1 % 2,103

Total income 497 536 -7 % 989 1,045 -5 % 2,261

Net profit 76 159 -52 % 107 316 -66 % -8

Earnings per share before dilution, SEK 0.37 1.55 -76 % 0.69 3.08 -78 % -0.08

Earnings per share after dilution, SEK 0.37 1.55 -76 % 0.69 3.08 -78 % -0.08

BALANCE SHEET

Loans to the public 28,970 29,533 -2 % 28,970 29,533 -2 % 29,880

Deposits and borrowings from the public 29,413 25,061 17 % 29,413 25,061 17 % 29,454

Debt securities in issue 100 2,409 -96 % 100 2,409 -96 % 2,599

Subordinated liabilities 995 993 0 % 995 993 0 % 994

Total equity 4,578 3,795 21 % 4,578 3,795 21 % 3,467

KEY RATIOS

Net interest margin (NIM) - Period 7.0 % 7.5 % 7.0 % 7.4 % 7.5 %

Net interest margin (NIM) - LTM 7.2 % 7.9 % 7.2 % 7.9 % 7.5 %

Credit losses, net - Period 2.5 % 1.4 % 2.6 % 1.3 % 4.4 %

Credit losses, net - LTM 4.9 % 1.5 % 4.9 % 1.5 % 4.4 %

C/I ratio - Period 43.3 % 42.4 % 46.0 % 42.8 % 48.4 %

C/I ratio - LTM 50.0 % 43.0 % 50.0 % 43.0 % 48.4 %

Return on equity (RoE) - Period 6.7 % 17.1 % 5.3 % 17.4 % Neg.

Return on equity (RoE) - LTM Neg. 17.9 % Neg. 17.9 % Neg.

CET1 ratio 1) 13.8 % 11.4 % 13.8 % 11.4 % 10.3 %

Tier 1 ratio 1) 14.7 % 12.7 % 14.7 % 12.7 % 11.8 %

Total capital ratio 1) 15.9 % 14.2 % 15.9 % 14.2 % 13.3 %

Average number of full-time employees 325 375 -13 % 326 377 -14 % 373

* Some key ratios have not been prepared in accordance with IFRS but are believed to facilitate the analysis of the Collector Group’s development. See Definitions, p. 8.

1) Refers to the consolidated situation. See note K12, pp. 20-22.

KEY RATIOS

THIS IS COLLECTORCollector is a challenger bank that offers financing solutions to private and corporate customers. Within the Private segment, the companyoffers lending to private individuals, invoice and payments by instalments to e-commerce and retail companies, credit cards and depositaccounts. The Corporate segment includes real estate lending, factoring and corporate lending directed mainly at small- and medium-sizedenterprises and handling of portfolios of overdue receivables. The company has offices in Gothenburg (head office), Stockholm, Helsinki,Turku and Oslo. Collector AB (publ) is listed on Nasdaq Stockholm.


Update regarding COVID-19The world has during the first half of 2020 been largely characterized by COVID-19. The pandemic has affected both companies and private individuals in many different ways. Collector is one of the companies that to this date has coped well. We have not had any large credit losses in the Corporate segment, however corporate lending and factoring has decreased as a consequence of an even further selective approach towards new business opportunities given the uncertain macroeconomic environment. We have not experienced any significant changes in payment patterns within the Private segment, however we have had an even further selective approach within this segment as well. We continue to have close dialogues and frequent follow-ups with our customers.

In summary, Collector has not yet experienced any significant negative consequences of COVID-19, but we monitor and analyze the development closely and have an increased readiness. We are humble that the pandemic is not over yet and that deteriorating macroeconomic forecasts and great uncertainty regarding the future entail a risk that Collector may also be negatively affected. In view of this, we made an extra credit loss provisioning of SEK 50 million in the first quarter of 2020. We will continue to monitor the macroeconomic development closely given that the future is very uncertain amid COVID-19.

Summary of the second quarterDuring the second quarter the loan book has decreased by 1 % compared to the previous quarter as a consequence of the balanced growth strategy and an even further selective approach towards new business opportunities amid COVID-19. Volumes within the Private segment remain largely unchanged. Within the Corporate segment corporate lending and factoring has seen the largest decrease, whereas real estate lending has experienced good demand. During the quarter we have also written down the value of the purchased debt portfolios, which we acquired in 2018, by SEK 50 million. The profitability level is still not satisfactory. Within the organization we continue working with clear focus on increasing profitability, however the work is challenging and will take time. In addition, we are humble that the macroeconomic environment remains uncertain amid COVID-19.

Our strategic agenda remainsOur strategic agenda remains with strong focus on profitable growth. Going forward, we expect a more balanced growth in relation to profitability. Consequently, we will focus on the business with the most attractive risk-adjusted capital allocation.

Our focus also remains on preserving our capital base and maintaining levels with adequate buffers in relation to our capital requirements.

The rights issue that was successfully carried out during the first quarter of the year strengthened our capital base by approximately SEK 1,000 million. The CET1 ratio and the total capital ratio amounted to 13.8 % and 15.9 %, respectively, by the end of June which we currently believe to be adequate levels.

New Board and Chairman in placeA new Board has been put in place during the quarter and the Board of Collector now consists of seven members against the previous five. I look forward to good cooperation with the entire Board and to continue pursuing the strategic agenda together. Lastly, I would also like to take the opportunity to welcome Erik Selin as our new Chairman.

Martin NossmanCEO

“Continued uncertain environment amid COVID-19.”

A comment from our CEO


The Group’s developmentTotal income for the second quarter 2020Total income amounted to SEK 497 million (536) corresponding to a decrease of 7 % compared to the corresponding quarter last year.

Net interest income decreased by 3 % compared to previous year and amounted to SEK 513 million (528). Funding costs increased at a higher pace than business volumes, mainly driven by a high liquidity level. Net interest income for the quarter has been negatively affected by a write-down of the value of our purchased debt portfolios, which we acquired in 2018, by SEK 50 million. Net interest margin during the quarter, which excluding the write-down of the purchased debt portfolios is a seasonally strong quarter, amounted to 7.0 % compared to 6.9 % in the last quarter.

Net commission income decreased by 3 % compared to last year and amounted to SEK -62 million (-60).

Net gains and losses on financial items amounted to SEK 5 million (2) and consist of changes in the market value of securities in our liquidity portfolio.

Other income amounted to SEK 41 million (67). The decrease of 39 % is mainly attributable to the divestment of Colligent Inkasso AB and revaluations of Collector Ventures that were made during the second quarter of 2019.

The underlying business has had a positive development compared to the second quarter of 2019. Real estate lending has contributed strongly while the divestment of Colligent Inkasso AB has contributed negatively.

Total income for the period January-June 2020Total income amounted to SEK 989 million (1,045) in the first half of 2020, corresponding to a decrease of 5 % compared to last year.

Net interest income amounted to SEK 1,027 million (1,035) in the first half of 2020, corresponding to a decrease of 1 % compared to last year.

Net commission income amounted to SEK -132 million (-124) in the first half of 2020, corresponding to a decrease of 6 % compared to last year.

Net gains and losses on financial items amounted to SEK -5 million (3) and consist of changes in the market value of securities in our liquidity portfolio.

Other income amounted to SEK 99 million (131), corresponding to a decrease of 24 % compared to the corresponding period last year.

Total expensesTotal expenses amounted to SEK 455 million (447) in the first half of 2020, of which SEK 215 million (228) pertain to the second quarter. Total expenses were negatively affected by non-recurring items of SEK 15 million consisting of consultancy costs during the first quarter of 2020. Some of these costs adhere to the Swedish Financial Supervisory Authority's review of Collector.

In 2020 we revised our method for capitalizing IT investments which means that a larger share of IT investments are expensed upfront.

The C/I ratio amounted to 46.0 % (42.8) in the first half of 2020 and to 43.3 % (42.4) in the second quarter of 2020. The C/I ratio amounted to 44.5 %, adjusted for non-recurring items, in the first half of 2020 and the C/I ratio of 43.3 % in the second quarter of 2020 is unadjusted. The work of analyzing costs within the company is progressing and we see further needs to lower our cost base.

Loan portfolioThe total loan portfolio amounted to SEK 28,970 million (29,533) by the end of the second quarter, corresponding to a decrease of 2 % compared to last year and a decrease of 1 % compared to the previous quarter. The development is a consequence of our balanced growth strategy. We have also had an even further selective approach towards new business opportunities given the uncertain macroeconomic environment amid COVID-19. The loan portfolio of the Private segment remains unchanged compared to both the previous year and the previous quarter. The loan portfolio of the Corporate segment has decreased by 4 % compared to the previous year and by 2 % compared to the previous quarter. Out of the total loan portfolio, the Corporate segment’s share amounts to 52 % (53) and the Private segment’s share amounts to 48 % (47).

Credit lossesFrom 1 January 2020 we have revised our assumptions regarding provisioning for expected credit losses and, as previously communicated, reported credit losses were expected to have amounted to approximately 2.0% of average lending to the public in 2019, should the new assumptions for provisioning for expected credit losses have been applied during 2019. The credit loss level for the first half of 2020 amounted to 2.6 % (1.3) and to 2.5 % (1.4) for the second quarter of 2020. Credit losses for the first half of 2020 were negatively affected by the extra provisioning for expected credit losses of SEK 50 million given the uncertain macroeconomic environment amid COVID-19. Adjusted for the extra provisioning credit losses amounted to 2.3 % for the first half of 2020 and the credit loss level of 2.5 % for the second quarter of 2020 is unadjusted.

Operating profit and net profitOperating profit amounted to SEK 146 million (411) for the first half of 2020 and to SEK 102 million (209) for the second quarter of 2020. Adjusted operating profit, excluding non-recurring items, amounted to SEK 211 million in the first half of 2020 and operating profit of SEK 102 million for the second quarter is unadjusted. Operating profit was negatively affected by non-recurring items of SEK 65 million, consisting of consultancy costs and the extra credit loss provisioning, in the first quarter of 2020. Net profit amounted to SEK 107 million (316) for the first half of 2020 and to SEK 76 million (159) in the second quarter of 2020. Earnings per share amounted to SEK 0.69 (3.08) for the first half of 2020 and to SEK 0.37 (1.55) in the second quarter of 2020. The number of shares increased from 102,690,502 to 205,381,004 in the first quarter of 2020 as a result of the rights issue that was carried out during the same period.

Non-recurring itemsNon-recurring items are defined as income and expenses that are not expected to appear on a regular basis. Non-recurring items consisting of consultancy costs of SEK 15 million and an extra credit loss provisioning of SEK 50 million, SEK 65 million in total, were recorded in the first quarter of 2020. There were no non-recurring items in the second quarter of 2020.

Liquidity and financial investmentsAs at 30 June 2020, cash and cash equivalents amounted to SEK 4,067 million (1,661). Collector’s excess liquidity is invested in Swedish municipal bonds, covered bonds, government issued securities and deposit accounts primarily with Nordic banks. At the end of the period, the group’s financial investments amounted to SEK 800 million.

Collector VenturesBy the end of the quarter, the portfolio of Collector Ventures consisted of 26 companies. Since the establishment in 2016, Collector Ventures has invested SEK 253 million in 28 companies and carried out two exits. On 21 January 2020 Collector announced its intention to divest Collector Ventures.

FundingDeposits and borrowings from the public amount to approximately 82 % (76) of Collector's balance sheet, which by the end of the period amounted to SEK 29,413 million (25,061). This is the primary source of funding for the Group. Commercial paper, and other, issued amounted to SEK 100 million (1,610). Collector also has unutilized credit facilities of SEK 800 million.

Capital adequacyCollector has received permission from the Swedish Financial Supervisory Authority to include net profit for the period in own funds. A review of the net profit for the period of Collector Bank AB and the consolidated situation has been performed, and Collector has been allowed to include net profit in the Common Equity Tier 1 capital. Collector has previously issued two hybrid capital instruments consisting of a Tier 1 capital instrument and a Tier 2 bond. The Tier 1 instrument of SEK 500 million meets the conditions for being accounted for as Tier 1 capital in own funds. Consolidated own funds may only include issued Tier 1 capital instruments in the proportion required to cover Collector Bank AB's capital requirement. Tier 1 capital contributions allowed to be included amounts to SEK 303 million. The Tier 2 capital instrument is subject to corresponding rules regarding inclusion in consolidated own funds. Tier 2 capital included amounted to SEK 379 million. At the end of the period, the own funds for the consolidated situation totaled SEK 5,234 million (4,483) and the risk-weighted exposure amount was SEK 32,970 million (31,551). The total capital ratio amounted to 15.9 % (14.2) as at 30 June 2020. At the same time, the CET1 ratio amounted to 13.8 % (11.4) and the Tier 1 ratio amounted to 14.7 % (12.7).


The loan portfolio of the Private segment amounted to SEK 13,921 million (13,856) and remains largely unchanged compared to both the previous year and the previous quarter. The development is a result of the strategy of maintaining balanced growth and reduced risk appetite given the uncertain macroeconomic environment amid COVID-19. The Private segment accounts for 48 % (47) of the total loan portfolio. Revenue from external customers amounted to SEK 440 million (420) corresponding to an increase of 5 % compared to the previous year and an increase of 1 % from the previous quarter. The net interest margin (NIM) amounted to 9.9 % compared to 9.0% in the previous quarter. The increase is mainly attributable to seasonality. The contribution amounted to SEK 75 million (110).

Consumer New sales of personal loans have decreased during the quarter. This has, in combination with the efforts of increasing profitability, resulted in an increase in interest rates towards customers during the quarter. We continue to see positive results of our efforts of increasing new sales through

own channels and enhancing the customer experience. This is a long-term focus area given that the absolute level of new sales through own channels remains low. Card issuance has had a stable development and we have approximately 25,000 credit cards outstanding.

PaymentsPayments continues displaying strong volume growth and transaction volumes amounted to SEK 2,700 million during the quarter, corresponding to an increase of 64 % compared to the previous year. Several of our e-retailers have been positively affected by COVID-19 which has contributed to the strong volume growth during the first half of 2020. Royal Design, which went live with our B2B solution during the first quarter of 2020, has now also decided to use our B2C solution. Consequently, all their online transactions are handled through Collector’s payment solutions. The payments offering has broadened during the quarter and now includes a checkout solution for shipment which enables an enhanced experience for end customers and simplified administration for shipment solutions for merchants.

DEVELOPMENT IN THE PRIVATE SEGMENT

Continued quiet quarter with stable underlying development

Personal loans• Loans of up to SEK 500,000 in Sweden• Loans of up to EUR 25,000 in Finland• Loans of up to NOK 250,000 in Norway• Approximately 67,000 personal loan customers• SEK 140,000 average new lending during the quarter

Payments• Invoice, account and payments by instalments for e-commerce companies and retail chains• Agreements with approximately 650 merchants• Approximately 6,000,000 end customers in the database

Cards• Collector Easyliving and Collector Easycard• Approximately 25,000 cards issued

Savings accounts • Savings accounts in Sweden, Finland and Germany• Approximately 150,000 savings accounts (own and through partnerships)• Average savings approximately SEK 200,000


The loan portfolio of the Corporate segment amounted to SEK 15,049 million (15,678), corresponding to a decrease of 4 % compared to the previous year and a decrease of 2 % compared to the previous quarter. The decrease is a result of the strategy of maintaining balanced growth and an even further selective approach given the uncertain macroeconomic environment amid COVID-19. The Corporate segment accounts for 52 % (53) of the total loan portfolio. Revenue from external customers amounted to SEK 226 million (286) corresponding to a decrease of 21 % from the previous year and a decrease of 12 % from the previous quarter. Revenue was negatively affected by a write-down of our purchased debt portfolios of SEK 50 million and positively affected by seasonality. The net interest margin (NIM) amounted to 4.5 %, compared to 4.8 % in the previous quarter. The contribution amounted to SEK 113 million (163).

Factoring and corporate lending The loan portfolio of factoring and corporate lending has during the second quarter decreased in relation to the first quarter following the balanced growth strategy and reduced risk appetite given the uncertain macroeconomic situation. We have close dialogues and frequent follow-ups with our customers to early try to identify possible effects of COVID-19 and see how we can support our customers within the frame of our business relationships.

Real estate lendingReal estate lending has during the second quarter had a growth of 8 % in relation to the first quarter and we continue to see solid demand.

DEVELOPMENT IN THE CORPORATE SEGMENT

Continued cautious development amid COVID-19

Factoring and corporate lending • Focus on the SME segment in Sweden, Norway and Finland• Digital factoring aimed at smaller companies• Approximately 450 factoring customers• Approximately 200 corporate loans• Accounts for 22 % of the total loan portfolio

Real estate lending • Metropolitan areas and university cities in the Nordic countries• Accounts for 27 % of the total loan portfolio• Lending to residential property developers accounts for less than 1 % of the total loan portfolio

Purchased debt• No further acquisitions of NPL portfolios to be carried out• Accounts for 3 % of the total loan portfolio


Other informationMaterial risks and uncertainty factorsThrough its operations, Collector is exposed to several different risks: primarily credit risk, market risk (currency risk and interest rate risk), liquidity and financing risks as well as operational risk and other business risks. The Group’s overall risk management policy focuses on the unpredictability of the financial markets and strives to minimize potentially unfavorable influences on the Group’s financial results. Risk management is handled by the Group’s management team according to policies established by the Board of Directors. The Board establishes written policies for overall risk management and for specific areas such as currency risk, interest rate risk, credit risk, operational risk and the use of derivatives and similar financial instruments.

The Group’s risk structure and its risk, liquidity and capital management are described in Collector’s Annual Report. Please also see the COVID-19 section below. There have been no significant changes since, except as reported in this interim report.

COVID-19 COVID-19 may result in negative economic consequences for Collector. Even if the company as of today has not experienced any significant negative consequences, there is a significant risk for changed behavior among both private and corporate customers which in turn may affect the demand for the company’s products as well as lead to lower ability to pay. It is not yet possible to predict how large and prolonged the macroeconomic consequences will be of COVID-19, and consequently its impact on Collector. Given the risk that Collector may become negatively affected the Board decided upon an extra credit loss provisioning during the first quarter of 2020. Collector has had an even further selective approach towards new business opportunities during the first two quarters of the year with the purpose of managing our risk profile amid COVID-19. We monitor and analyze the development closely and have an increased readiness to ensure fully functional operations.

The consolidated situationThe Parent Company, Collector AB (publ), is part of a consolidated situation that includes the subsidiaries Collector Bank AB, Collector Payments AB, Collector Payments Finland Oy, Colligent Norge AS and Collector Ventures 1 KB. All companies are fully consolidated. The entire consolidated situation is under the supervision of the Swedish Financial Supervisory Authority, and is subject to the regulations regarding governance, risk control, capital adequacy and large exposures applicable to credit institutions.

EmployeesDuring the quarter, the average number of full-time employees (FTE) amounted to 325 corresponding to a decrease of 13 % compared to the previous year mainly driven by the divestment of Colligent Inkasso AB. The number of full-time employees includes employees on fixed-term contracts, but not on parental leave or a leave of absence.

Parent CompanyThe Parent Company is a holding company. Net sales for the period January–June 2020 amounted to SEK 40 million (46) and pertains to intra-Group administrative services. Net profit for the period January-June amounted to SEK -9 million (-6). As of 30 June 2020, the Parent Company’s cash and bank balances amounted to SEK 3 million (0), and equity amounted to SEK 2,431 million (1,232).

The Collector shareCollector’s share (“COLL”) is listed on Nasdaq Stockholm. As at 30 June 2020, the closing price for the Collector share was SEK 13.46, corresponding to a market capitalization of SEK 2.8 billion. There were approximately 10,900 shareholders at the end of the period.

Share capitalAs of 30 June 2020, the share capital amounted to SEK 20,538,100, divided into 205,381,004 ordinary shares. The Company has a single share series. Each share entitles the shareholder to one vote at the General Meeting.

DividendAccording to the adopted dividend policy dividends may be low or not occur at all in the medium term.

Relationships with related partiesCollector provides real estate loans to Söderfors Bruk AB and SHH Bostad AB (associated companies of Balder). These transactions take place on market terms. Deposits have been made by related parties and are in accordance with applicable market terms for Collector’s deposit accounts.

Changes to the management teamJan-Erik Setterberg took office as General Manager, Consumer on April 1. Sofia Brax resigned as Chief HR & Sustainability Officer on May 29. Chief Risk Officer Martin Nilsson, Chief Legal Counsel Josefin Eriksson, Acting Head of Compliance Karin Bucko and Finance & IR Manager Madeleine Mörch were included in the Senior management team in June.

Presentation for investors, analysts and mediaA conference call will be held on 16 July 2020 at 09.00 a.m. (CET), during which CEO Martin Nossman and CFO Peter Olsson will present the report. The presentation will be held in Swedish and will be broadcasted live at: https://tv.streamfabriken.com/collector-q2-2020. To participate in the conference call, please dial +46 856 642 706. The switchboard opens at 08.55 (CET). The presentation material will be prepared in English and be available prior to the presentation on our website collector.se/en.

Events after the end of the periodMarcus Hansson informed Collector on July 2 that he had decided to, with immediate effect, leave the Board of Directors.

%44.1 %13.2 %

6.4 %4.6 %4.2 %2.2 %1.5 %1.4 %0.9 %0.8 %

20.7 %100.0%

ShareholderFastighets AB BalderStrategiQ Capital ABSEB Life InternationalLena AplerErik SelinAvanza PensionSEB ABVante ABHandelsbanken LivSEB Life InternationalOther shareholdersTotal

Ownership structure 30 June 2020


Definitions

Alternative performance measures (APMs) are financial measures of past or future earnings trends, financial position or cash flow that are not defined in the applicable accounting regulatory framework (IFRS), in the Capital Requirements Directive (CRD IV), or in the EU’s Capital Requirement Regulation number 575/2013 (CRR). APMs are used by Collector when relevant for monitoring and describing the bank’s financial situation and enhance comparability between the periods. Collector believes that these APMs provide valuable information and enhances the analysis of the Group’s financial development. These are not necessarily comparable to similar APMs presented by other companies

Adjusted C/I ratio - PeriodTotal expenses, adjusted for non-recurring items, for the period in relation to total income, adjusted for non-recurring items, for the period. Adjusted credit losses, net - PeriodCredit losses, net, adjusted for non-recurring items, for the period in relation to average loans to the public for the period. Adjusted operating profitOperating profit adjusted for non-recurring items.

Average number of full-time employeesIncluding employees on fixed-term contracts, but not on parental leave or leave of absence.

CET1 ratio (Common Equity Tier 1 ratio) 1) Common Equity Tier 1 capital in relation to total risk-weighted exposure amount. Refers to the consolidated situation. See note K12, pp. 20 - 22.

C/I ratio - PeriodTotal expenses for the period in relation to total income for the period.

C/I ratio - LTMTotal expenses for the last twelve months in relation to total income for the last twelve months.

Contribution marginOperating profit excluding non-allocated central costs.

Credit losses, net - PeriodCredit losses, net for the period in relation to average loans to the public for the period.

Credit losses, net - LTMCredit losses, net for the last twelve months in relation to average loans to the public for the last twelve months.

Earnings per share after dilutionNet profit for the period (adjusted for convertible interest) in relation to average number of shares outstanding after dilution for the period.

Earnings per share before dilutionNet profit for the period in relation to average number of shares outstanding before dilution for the period.

Net interest margin (NIM) - LTMNet interest income for the last twelve months in relation to average loans to the public for the last twelve months.

Net interest margin (NIM) - PeriodNet interest income for the period in relation to average loans to the public for the period.

Non-recurring itemsIncome and expenses that are not expected to appear on a regular basis. See The Group's development, page 4.

Return on equity (RoE) - LTMNet profit for the last twelve months in relation to average equity for the last twelve months.

Return on equity (RoE) - PeriodNet profit for the period in relation to average equity for the period.

Tier 1 ratio 1) Tier 1 capital in relation to total risk-weighted exposure amount. Refers to the consolidated situation. See note K12, pp. 20 - 22.

Total capital ratio 1) Total own funds in relation to total risk-weighted exposure amount. Refers to the consolidated situation. See note K12, pp. 20 - 22.

1) Key ratios according to capital adequacy rules


STATEMENT OF COMPREHENSIVE INCOME, CONDENSED

INCOME STATEMENT, CONDENSED

Group 2020 2020 2019 2020 2019 2019

SEKm Note Q2 Q1 Q2 Jan-Jun Jan-Jun Full year

Interest income 1) 610 624 616 1 234 1 200 2 460

Interest expense -96 -110 -88 -206 -165 -357

Net interest income K4 513 514 528 1 027 1 035 2 103

Commission income 19 16 25 36 41 94

Commission expense -81 -86 -85 -168 -165 -347

Net commission income -62 -70 -60 -132 -124 -253

Net gains and losses on financial items 5 -10 2 -5 3 -7

Other income 41 58 67 99 131 419

Total income 497 492 536 989 1 045 2 261

General and administrative expenses K5 -122 -116 -123 -239 -238 -458

Depreciation/amortisation and impairment of tangible and intangible assets -22 -18 -35 -40 -66 -284

Other expenses K6 -71 -106 -69 -177 -143 -353

Total expenses -215 -240 -228 -455 -447 -1 095

Profit before credit losses 282 252 309 534 598 1 166

Credit losses, net K7 -180 -208 -100 -388 -187 -1 218

Operating profit 102 44 209 146 411 -52

Tax expense -26 -13 -50 -39 -95 44

Net profit for the period 76 31 159 107 316 -8

Net profit for the period attributable to the shareholders of Collector AB 76 31 159 107 316 -8

Earnings per share, SEK

before dilution 0,37 0,20 1,55 0,69 3,08 -0,08

after dilution 0,37 0,20 1,55 0,69 3,08 -0,08

1) These consist primarily of interest income calculated using the effective interest rate method.

Group 2020 2020 2019 2020 2019 2019

SEKm Note Q2 Q1 Q2 Jan-Jun Jan-Jun Full year

Net profit for the period reported via income statement 76 31 159 107 316 -8

Items that may be reclassified to the income statement

Exchange rate differences -2 -8 0 -10 4 0

Other comprehensive income for the period, net of tax -2 -8 0 -10 4 0

Total comprehensive income for the period 74 23 159 97 320 -8

Total comprehensive income attributable to the shareholders of Collector AB 74 23 159 97 320 -8


BALANCE SHEET, CONDENSED

Group 2020 2019 2019

SEKm Note 30-Jun 31-Dec 30-Jun

ASSETS

Cash and balances with central banks - - -

Treasury bills and other bills eligible for refinancing with central banks, etc. K13 67 44 29

Loans to credit institutions 4 067 5 265 1 661

Loans to the public K8, K9 28 970 29 880 29 533

Bonds and other interest-bearing securities K13 2 021 1 275 997

Shares and participating interests K13 310 302 272

Intangible assets 135 138 345

Tangible assets 172 194 202

Derivatives K13 80 78 65

Other assets 181 150 12

Prepaid expenses and accrued income 44 110 71

TOTAL ASSETS 36 047 37 436 33 187

LIABILITIES AND EQUITY

Amounts owed to credit institutions 79 82 107

Deposits and borrowings from the public K10 29 413 29 454 25 061

Debt securities in issue K11 100 2 599 2 409

Derivatives K13 - - -

Tax provisions 102 102 145

Other liabilities 350 422 382

Accrued expenses and prepaid income 430 316 295

Subordinated liabilities K11 995 994 993

Total liabilities 31 469 33 969 29 392

Equity attributable to shareholders of Collector AB 4 578 3 467 3 795

Total equity 4 578 3 467 3 795

TOTAL LIABILITIES AND EQUITY 36 047 37 436 33 187


STATEMENT OF CHANGES IN EQUITY, CONDENSED

Group

SEKm Shareholders' equity

January-March 2020Share

capital

Other contributed

equity

Exchange differences,subsidiaries

and associates

Retained earnings incl. profit for the

period Total equity

Opening balance 1 January 2020 10 1 313 -3 2 147 3 467

Equity issuance 10 1 017 1 027

Equity issuance costs incl. tax -13 -13

Total comprehensive income for the period

of which reported through profit and loss 107 107

of which reported through other comprehensive income -10 -10

Closing balance 30 June 2020 21 2 330 -13 2 241 4 578

Group


January-December 2019Share

capital

Other contributed

equity


and associates


period Total equity



of which reported through profit and loss -8 -8

of which reported through other comprehensive income 0 0

Closing balance 31 December 2019 10 1 313 -3 2 147 3 467

Group


January-March 2019Share

capital

Other contributed

equity


and associates


period Total equity



of which reported through profit and loss 316 316

of which reported through other comprehensive income 4 4

Closing balance 30 June 2019 10 1 313 1 2 471 3 795


CASH FLOW STATEMENT, CONDENSED

Group 2020 2019 2019

SEKm Jan-Jun Full year Jan-Jun

Operating activities

Operating profit 146 -52 411

Adjustments for non-cash items in operating activities 659 1 002 -114

Income taxes paid -68 -170 -117

Increase/decrease in assets and liabilities from operating activities -405 2 153 -511

Cash flow from operating activities 332 2 933 -331

Investing activities

Divestment of subsidiaries - 208 -

Acquisitions/Disposals of tangible assets 0 0 0

Acquisitions/Disposals of intangible assets -17 -77 -37

Cash flow from investing activities -17 131 -37

Financing activities

Decrease of liabilities -15 -33 -17

Equity issuance 1 014 - -

Redemption of interest-bearing securities -2 499 -201 -390

Issuance of interest-bearing securities 1 496 496

Cash flow from financing activities -1 499 262 89

Cash and cash equivalents at the beginning of the period 5 265 1 928 1 928

Cash flow for the period -1 184 3 326 -279

Exchange rate differences on cash and cash equivalents -14 11 12

Cash and cash equivalents at end of the period 4 067 5 265 1 661


NotesAll amounts in the notes are in millions of Swedish kronor (SEKm) and at book value unless otherwise indicated. The interim information on pages 2-8 constitute an integrated part of this financial report.

NOTE K1 Corporate information

Collector AB (publ), company registration number 556560-0797,conducts business in Sweden and in other Nordic countries. The head quarter is located in Gothenburg. The business consists of financial services and credit management. Collector AB is a public company with its registered head quarter in Gothenburg, Sweden. The address of the head office is Lilla Bommens Torg 11, SE-411 09 Gothenburg, Sweden. The Parent Company, Collector AB (publ), is part of the consolidated situation that includes the subsidiaries Collector Bank AB, Collector Payments AB, Collector Payments Finland Oy, Colligent Norge AS and Collector Ventures 1 KB. All companies are fully consolidated. The whole consolidated situation is under the supervision of the Swedish Financial Supervisory Authority and is covered by its rules for capital adequacy and large exposures.

NOTE K2 Accounting policies

Accounting policiesThe interim report is prepared in accordance with IAS 34, and the Swedish Financial Supervisory Authority’s Regulationsand General Guidelines on Annual Accounts for Credit Institutions and Securities Companies (FFFS 2008:25, Chapter 7, Sections 2–3, and Chapter 8), the Annual Accounts Act for Credit Institutions and Securities Companies (Chapter 7, Sections 7–8) and the Swedish Financial Reporting Board’s recommendation RFR 1 Supplementary Accounting Rules for Groups have been taken intoconsideration. For the Parent Company, the Swedish Annual Accounts Act (ÅRL) and the Swedish Financial Reporting Board’s recommendation RFR 2 Accounting for Legal Entities have been applied. In other regards, the interim report of the Group and theParent Company is prepared in accordance with the same accounting principles and calculation methods as those applied in the 2019 annual report.

Other changes in IFRS None of the other changes in the accounting regulations issued for application are deemed to have a significant impact on Collector and its financial reports, capital adequacy or large exposures.


NOTE K3 Segments

Revenue and segment revenue split follows Collector’s segment reporting. Consequently, total revenue does not match total income in the income statement as of the interim report January-September 2019 when Collector changed the reporting format of the income statement.

Group

SEKm, Q2 2020 Private Corporate Eliminations Group

Revenue, external customers 440 226 - 665

Revenue, internal 27 11 -38 0

Total revenue 467 236 -38 665

Contribution 75 113 - 189

Loans to the public 13 921 15 049 - 28 970

Net interest margin (NIM), % 9,9 4,5 - 7,0


Revenue, external customers 436 258 0 694






SEKm, Jan-Jun 2020 Private Corporate Eliminations Group

Revenue, external customers 876 484 - 1 360


Total revenue 934 511 -85 1 360




SEKm, Full year 2019 Private Corporate Eliminations Group

Revenue, external customers 1 640 1 157 - 2 797


Total revenue 1 768 1 234 -205 2 797

Contribution -233 454 - 221




Revenue, external customers 420 286 - 706






SEKm, Jan-Jun 2019 Private Corporate Eliminations Group

Revenue, external customers 807 561 - 1 368


Total revenue 860 595 -86 1 368





NOTE K4 Net interest income

Group 2020 2020 2019 2020 2019 2019

SEKm Q2 Q1 Q2 Jan-Jun Jan-Jun Full year

Loans to credit institutions 0 0 0 0 0 1

Loans to the public 610 624 616 1 233 1 200 2 459

Interest-bearing securities 0 0 0 0 0 1

Other - - - - - -

Total interest income 610 624 616 1 234 1 200 2 460

Amounts owed to credit institutions - - - - - -

Deposits and borrowings from the public -79 -90 -65 -168 -130 -277

Subordinated liabilities -17 -16 -17 -33 -21 -53

Debt securities in issue -1 -4 -6 -5 -13 -26

Other 0 0 0 0 -1 -1

Total interest expense -96 -110 -88 -206 -165 -357

Net interest income 513 514 528 1 027 1 035 2 103

NOTE K5 General and administrative expenses

Group 2020 2020 2019 2020 2019 2019


Staff costs -83 -76 -83 -159 -164 -317

Other general and administrative expenses -40 -40 -40 -80 -74 -141

Total general and administrative expenses -122 -116 -123 -239 -238 -458

NOTE K6 Other expenses

Group 2020 2020 2019 2020 2019 2019


Communications -8 -9 -7 -17 -15 -30

Costs of administration -10 -8 -7 -18 -15 -33

Other purchased services -51 -47 -38 -97 -68 -138

Other expenses -2 -42 -17 -45 -45 -152

Total other expenses -71 -106 -69 -177 -143 -353


Group 2020 2020 2019 2020 2019 2019


Loans at amortised cost

Credit impairment provisions - Stage 1 -24 -1 -14 -25 -8 -101

Credit impairment provisions - Stage 2 3 -13 -1 -10 -7 -52

Credit impairment provisions - Stage 3 -126 -178 -70 -304 -141 -1 003

Total -147 -192 -85 -339 -156 -1 156

Write-offs -33 -16 -15 -49 -31 -62

Recoveries 0 0 0 0 0 0

Total -33 -16 -15 -49 -31 -62

Total loans at amortised cost -180 -208 -100 -388 -187 -1 218

Total credit impairment -180 -208 -100 -388 -187 -1 218

NOTE K7 Credit losses

NOTE K8 Loans to the public

Group 2020 2019 2019

SEKm 30-Jun 31-Dec 30-Jun

PRIVATE CUSTOMERS

Total gross carrying amount 17 177 17 604 16 736

of which Stage 1 11 029 11 568 10 965

of which Stage 2 600 740 793

of which Stage 3 4 569 4 186 3 788

of which Stage 3 - POCI 1) 980 1 110 1 190

Total credit impairment provisions -2 278 -2 067 -1 297

of which Stage 1 -189 -180 -141

of which Stage 2 -112 -118 -75

of which Stage 3 -1 978 -1 769 -1 081

of which Stage 3 - POCI 1) - - -

Total carrying amount, private customers 14 899 15 537 15 439

Private customers

Provision ratio for loans Stage 1 1,7% 1,6% 1,3%



Provision ratio for loans Stage 3 - POCI 1) 0,0% 0,0% 0,0%

Total Provision ratio, private customers 2) 14,1% 12,5% 8,3%


NOTE K8 Loans to the public, cont.

Group 2020 2019 2019


CORPORATE CUSTOMERS


of which Stage 1 12 901 12 707 13 159

of which Stage 2 620 669 560

of which Stage 3 949 1 270 451

Total credit impairment provisions -398 -304 -76




Total carrying amount, corporate customers 14 071 14 343 14 094

Corporate customers




Total Provision ratio, corporate customers 2,7% 2,1% 0,5%

TOTAL


of which Stage 1 23 930 24 275 24 124

of which Stage 2 1 219 1 409 1 353

of which Stage 3 5 517 5 456 4 239

of which Stage 3 - POCI 1) 980 1 110 1 190

Total credit impairment provisions -2 676 -2 371 -1 373

of which Stage 1 -238 -213 -161


of which Stage 3 -2 300 -2 029 -1 135

of which Stage 3 - POCI 1) - - -

Total carrying amount, Total 28 970 29 880 29 533

Stage 3 Loans / Total Loans, gross, % 2) 18,0% 17,5% 14,3%

Stage 3 Loans / Total Loans, net, % 2) 11,5% 11,9% 10,9%

Total




Provision ratio for loans Stage 3 - POCI 1) 0,0% 0,0% 0,0%

Total Provision ratio 2) 8,7% 7,6% 4,6%

1) Purchased credit-impaired assets are subject to net accounting from the time of acquisition, consequently no provisioning is shown for these receivables.2) Excluding purchased credit-impaired assets.


Group

SEKm Stage 1 Stage 2 Stage 3 Total

Opening balance 1 January 2020 213 129 2 029 2 371

New and derecognised financial assets, net 30 -318 -146 -433

Changes in risk factors (EAD, PD, LGD) -95 205 157 266

Changes due to changed credit judgement 12 6 32 50

From Stage 2 to Stage 1 78 - - 78


From Stage 1 to Stage 2 - 117 - 117


From Stage 1 to Stage 3 - - 23 23


Other 0 -1 6 5

Closing balance 30 June 2020 238 138 2 300 2 676

Opening balance 1 January 2019 131 81 979 1 191

New and derecognised financial assets, net 93 -6 199 285

Changes in risk factors (EAD, PD, LGD) -11 1 106 96

Changes due to changed credit judgement - - 550 550







Other -7 -4 25 14

Closing balance 31 December 2019 213 129 2 029 2 371

Opening balance 1 January 2019 131 81 979 1 191

New and derecognised financial assets, net -42 -144 -239 -425

Changes in risk factors (EAD, PD, LGD) 55 33 231 319

Changes due to changed credit judgement - - - 0







Other 0 0 1 1

Closing balance 30 June 2019 161 76 1 135 1 373

NOTE K9 Reconciliation of credit losses provisions for loans

The table below provides a reconciliation of credit losses provisions for loans to the public.


NOTE K10 Deposits and borrowings from the public

Group 2020 2019 2019


EUR 4 994 1 609 184

SEK 24 419 27 845 24 877

Total 29 413 29 454 25 061

NOTE K11 Debt securities in issue and subordinated liabilities

Subordinated liabilities 2020 2019 2019

Group 30-Jun 31-Dec 30-Jun

SEKm ISINCarrying amount

Nominal amount

Carrying amount

Nominal amount

Carrying amount

Nominal amount

COLLB 2, MTN 1 SE0010101402 499 500 499 500 499 500

COLLB 3, AT1 SE0012377687 496 500 495 500 494 500

Total 995 1 000 994 1 000 993 1 000

Debt securities in issue 2020 2019 2019

Group 30-Jun 31-Dec 30-Jun

SEKm ISINCarrying amount

Nominal amount

Carrying amount

Nominal amount

Carrying amount

Nominal amount

COLLB 1, MTN 1 SE0009723083 - - 800 800 799 800

Commercial papers, other 100 100 1 799 1 804 1 610 1 611

Total 100 100 2 599 2 604 2 409 2 411


NOTE K12 Capital adequacy consolidated situation

Group 2020

30-Jun

SEKm AmountPercentage of risk exposure amount

Common Equity Tier 1 capital requirement (Pillar 1) 1 483,6 4,5%

Other Common Equity Tier 1 capital requirement (Pillar 2) 272,7 0,8%

Buffer requirements 854,4 2,6%

Total Common Equity Tier 1 (CET1) capital requirement 2 610,7 7,9%

Common Equity Tier 1 (CET1) capital 4 552,6 13,8%

Tier 1 capital requirement (Pillar 1) 1 978,2 6,0%

Other tier 1 capital requirement (Pillar 2) 331,1 1,0%


Total Tier 1 capital requirement 3 163,7 9,6%

Tier 1 capital 4 855,7 14,7%

Capital requirements (Pillar 1) 2 637,6 8,0%

Other capital requirement (Pillar 2) 409,0 1,2%


Total capital requirement 3 901,0 11,8%

Own funds 5 234,2 15,9%


NOTE K12 Capital adequacy consolidated situation, cont.

2020 2019 2019

OWN FUNDS, SEKm 30-Jun 31-Dec 30-Jun

Capital instruments and the related share premium accounts: Equity 20,5 10,3 10,3

Retained earnings 4 451,0 3 474,5 3 416,2

Non-controlling interests - - -

Net profit for the period after deductions related to the consolidated situation and other foreseeable charges 106,6 -17,4 308,4

Common Equity Tier 1 capital before regulatory adjustments 4 578,1 3 467,4 3 734,8

Deduction:

Additional value adjustments 0,0 0,0 0,0

Intangible assets -135,1 -138,3 -293,8

Deferred tax assets -11,2 -11,1 -0,1

Significant investments in the financial sector 0,0 0,0 0,0

Application of the transitional rules IFRS9 120,8 146,6 146,6

Total regulatory adjustments to Common Equity Tier 1 -25,5 -2,8 -147,3

Common Equity Tier 1 (CET1) capital 4 552,6 3 464,5 3 587,5

Perpetual subordinated loan 303,1 495,1 416,9

Additional Tier 1 instruments 303,1 495,1 416,9

Tier 1 capital 4 855,7 3 959,6 4 004,4

Supplementary capital 378,5 499,2 478,2

Tier 2 Capital 378,5 499,2 478,2

Total own funds 5 234,2 4 458,8 4 482,6

2020 2019 2019

RISK-WEIGHTED EXPOSURE AMOUNT, SEKm 30-Jun 31-Dec 30-Jun

Credit risks, using the standardized approach

Central government or central banks exposures 0,0 0,0 0,0

Municipalities and other associations 0,0 0,0 0,0

Institutional exposures 823,4 1 067,0 328,8

Corporate exposures 12 668,8 12 305,1 13 239,7

Retail exposures 8 861,6 9 650,0 8 762,5

Exposures with mortgage in residential property 40,2 46,4 36,6

Exposures in default 4 702,6 5 259,0 4 848,3

Items associated with particularly high risk 1 209,8 511,3 807,6

Exposures in the form of covered bonds 95,6 54,7 33,3

Equity exposures 0,0 0,0 0,0

Other exposures 603,2 728,5 610,2

Total 29 005,0 29 621,9 28 667,1

Risk exposure amount credit valuation adjustment risk (CVA) 8,2 11,3 14,7

Risk exposure amount market risk 572,1 480,4 124,9

Risk exposure amount operational risk 3 384,5 3 384,5 2 743,9

Total risk-weighted exposure amount 32 969,9 33 498,1 31 550,7


NOTE K12 Capital adequacy consolidated situation, cont.

2020 2019 2019

CAPITAL REQUIREMENT, SEKm 30-Jun 31-Dec 30-Jun

Capital requirement for credit risk using the standardized approach

Central government or central banks exposures 0,0 0,0 0,0

Municipalities and other associations 0,0 0,0 0,0

Institutional exposures 65,9 85,4 26,3

Corporate exposures 1 013,5 984,4 1 059,2

Retail exposures 708,9 772,0 701,0

Exposures with mortgage in residential property 3,2 3,7 2,9

Exposures in default 376,2 420,7 387,9

Items associated with particularly high risk 96,8 40,9 64,6

Exposures in the form of covered bonds 7,6 4,4 2,7

Equity exposures 0,0 0,0 0,0

Other exposures 48,3 58,3 48,8

Total capital requirement for credit risk 2 320,4 2 369,8 2 293,4

Risk exposure amount credit valuation adjustment risk (CVA) 0,7 0,9 1,2

Risk exposure amount market risk 45,8 38,4 10,0

Risk exposure amount operational risk 270,8 270,8 219,5

Total Pillar 1 capital requirement 2 637,6 2 679,8 2 524,1

Concentration risk 248,4 254,2 232,6

Interest rate risk for the banking book 160,6 135,1 153,1

Total Pillar 2 capital requirement 409,0 389,3 385,6

Capital buffers

Capital conservation buffer 824,2 837,5 788,8

Countercyclical capital buffer 30,1 647,7 487,2

Total Capital requirement - Capital buffers 854,4 1 485,1 1 275,9

Total Capital requirement 3 901,0 4 554,3 4 185,6

2020 2019 2019

CAPITAL REQUIREMENT 30-Jun 31-Dec 30-Jun

Capital ratios and capital buffers

CET1 capital ratio 13,8% 10,3% 11,4%

Tier 1 capital ratio 14,7% 11,8% 12,7%

Total capital ratio 15,9% 13,3% 14,2%

Institution specific buffert requirement 2,6% 4,4% 4,0%

of which capital conservation buffer 2,5% 2,5% 2,5%

of which countercyclical capital buffer 0,1% 1,9% 1,5%

CET1 available to meet buffers 7,9% 5,3% 6,2%

A review has been performed of the earnings for January-June.


The table below shows financial instruments measured at fair value, based on how the classification in the fair value hierarchy was made.The different levels are defined as follows:: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) • Observable data for assets or liabilities other than quoted prices included in level 1, either directly (i.e. as price quotes) or indirectly (i.e. deduced from price quotes) (level 2) • Inputs for the asset or liability that are not based on observable market data (i.e. unobservable data) (Level 3)

The following table shows the Group’s financial assets and liabilities as at 30 June 2020.

Level 1 Level 2 Level 3 Total

Assets

Financial assets measured at fair value via the income statement

Derivative instruments held for trading (currency derivatives) - 80 - 80

Treasury bills and other bills eligible for refinancing with central banks, etc. - 67 - 67

Bonds and other interest-bearing securities - 2 021 - 2 021

Shares and participating interests - 5 305 310

Total assets - 2 173 305 2 478

Liabilities

Financial liabilities measured at fair value via the income statement

Derivative instruments held for trading (currency derivatives) - - - -

Total liabilities - - - -

The following table shows the Group’s financial assets and liabilities as at 31 December 2019.


Assets




Bonds and other interest-bearing securities - 1 275 - 1 275


Total assets - 1 404 297 1 701

Liabilities




The following table shows the Group’s financial assets and liabilities as at 30 June 2019.


Assets




Bonds and other interest-bearing securities - 997 - 997


Total assets - 1 096 267 1 363

Liabilities




For other financial assets and liabilities, the carrying amount corresponds to the estimated fair value in all material respects.

NOTE K13 Financial instruments at fair value


NOTE K14 Related parties

During the period normal business transactions were executed between companies in the Group, including other related parties.

NOTE K15 Asset pledged and contingent liabilities

Group, asset pledged 2020 2019 2019


For own liabilities and provisions 800 800 800

Total 800 800 800

Group, contingent liabilities 2020 2019 2019


Unutilized credit limits 2 366 1 581 1 280

Total 2 366 1 581 1 280

NOTE K16 Events after 30 June 2020

Marcus Hansson informed Collector on July 2 that he had decided to, with immediate effect, leave the Board of Directors.


Parent company 2020 2020 2019 2020 2019 2019


Net sales 18 22 23 40 46 90

Operating expenses

Other external expenses -23 -21 -22 -44 -44 -91

Depreciation/amortisation and impairment of tangible and intangible assets -1 -1 -3 -2 -6 -12

Operating earnings -6 0 -2 -6 -4 -13

Earnings from financial items

Earnings from Participations in Group companies - - - - - 175

Income from interest and similar items - - 0 - 0 1

Interest expenses and similar items -1 -3 -2 -5 -4 -9

Earnings after financial items -6 -3 -4 -9 -8 154

Appropriations

Appropriations, other - - 0 - 0 33

Earnings before tax -6 -3 -4 -9 -8 187

Tax expense -1 1 1 0 2 0

Net profit for the period -7 -2 -3 -9 -6 187

INCOME STATEMENT, CONDENSED


Parent company 2020 2019 2019


ASSETSNon-current assets

Intangible non-current assets

Capitalized expenditure for development work and similar work 1 1 12

1 1 12Property, plant and equipment

Equipment 10 11 14

10 11 14Financial non-current assets

Participations in Group companies 2 779 1 504 1 511

Other non-current receivables 5 5 5

Deferred tax asset 3 1 2

2 787 1 510 1 518Total non-current assets 2 798 1 522 1 544

Current assets

Current receivables

Receivables from Group companies - - 49

Other receivables 14 10 10

Prepayments and accrued income 12 15 9

26 25 68

Cash and bank balances 3 283 0

Total current assets 29 308 68TOTAL ASSETS 2 826 1 830 1 612

EQUITY AND LIABILITIESEquity

Restricted equity

Share capital (205,381,004 shares) 21 10 10

Statutory reserve 18 18 18

Development expenditure fund 1 2 9

40 30 37Non-restricted equity

Share premium reserve 2 291 1 274 1 274

Retained earnings 109 -65 -73

Profit for the period -9 187 -6

2 391 1 396 1 195Total equity 2 431 1 426 1 232

Untaxed reserves

Tax allocation reserves - - 3

- - 3Provisions

Tax provisions - - 0

- - 0

Non-current liabilities

Other non-current liabilities 94 92 90

94 92 90Current liabilities

Accounts payable 0 8 3

Liabilities to Group companies 286 280 272

Other current liabilities 1 5 3

Accrued expenses and deferred income 15 19 9

302 312 288Total liabilities 395 404 378TOTAL EQUITY AND LIABILITIES 2 826 1 830 1 612

BALANCE SHEET, CONDENSED


Parent company

SEKm Restricted equityNon-restricted

equity

2020Share

capitalStatutory

reserve

Development expenditure

fund

Share premium

reserve

Retained ear-nings inc. profit

for the period Total equity

Opening balance 1 January 2020 10 18 2 1 274 121 1 426

Transfer of development expenses -1 1 0

Equity issuance 10 1 017 1 027

Equity issuance costs incl. tax effect -13 -13

Net profit for the period -9 -9

Closing balance 30 June 2020 21 18 1 2 291 100 2 431

STATEMENT OF CHANGES IN EQUITY, CONDENSED

Parent company


equity

2019Share

capitalStatutory

reserve


fund

Share premium

reserve

Retained earnings inc. profit for the

period Total equity

Opening balance 1 January 2019 10 18 11 1 274 -75 1 238


Net profit for the period 187 187

Closing balance 31 December 2019 10 18 2 1 274 121 1 426

Parent company


equity

2019Share

capitalStatutory

reserve


fund

Share premium

reserve

Retained earnings inc. profit for the

period Total equity

Opening balance 1 January 2019 10 18 11 1 274 -75 1 238


Net profit for the period -6 -6

Closing balance 30 June 2019 10 18 9 1 274 -79 1 232


SIGNATURES OF THE BOARD OF DIRECTORS AND THE CEO

Board of Directors & CEO

The Board of Directors and the CEO hereby certify that the interim report provides a fair and accurate overview of the operations,position and results of the parent company and the Group and describes the significant risks and uncertainties faced by the parent company and the companies in the Group.

This interim report has not been reviewed by the company’s auditors.

Gothenburg, July 15, 2020

Erik SelinChairman of the Board

Anna Kinberg BatraBoard member

Ulf CroonaBoard member

Christoffer LundströmBoard member

Marie OsbergBoard member

Bengt EdholmBoard member

Charlotte HybinetteBoard member

Martin NossmanCEO


This is information that Collector AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, on 16 July 2020 at 7:30 a.m. CET.

Future company events

Interim report January-September 22 October 2020

CONTACT For more information, please contact:

CEO Martin Nossman | Phone: +46 703 30 26 75 | E-mail: [email protected]

CFO Peter Olsson | Phone: +46 737 12 04 46 | E-mail: [email protected]

IR Manager Madeleine Mörch | Phone: +46 737 12 04 52 | E-mail: [email protected]

collector ab - interim report january-june 2020 · collector ab (publ) 556560-0797, interim report...

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