Intrum Justitia Sp. z o.o.

1. Intrum Justitia Sp. z o.o. RECOVERY OF BAD DEBTS 2006April 11th

2. INTRUM JUSTITIA THE VIEWPOINT OF THE EU MEMBERS Intrum Justitia, Europe’s provider of Credit Management Services carried out a written survey in 22 Europeans Countries involving more than 9000 companies. Full report: www.intrum.pl. THE MOST IMPORTANT OBSTACLE TO TRADE IN THE VIEW OF THE EU MEMBER STATES IS PAYMENT UNCERTAINTY

3. PAYMENT TERMS, DURATION AND DELAY • ALONGSIDE CULTURAL DIFFERENCES(FIRST OF ALL: A DIFFERENT USE OF VARIOUS MEANS OF PAYMENTS) , THE LENGTH OF DELAY IS INFLUENCED BY TWO MAIN FACTORS: • BY A CONSISTENT AND PROFESSIONAL CREDIT MANAGEMENTPROCESS,AND • BY AN EFFICIENT AND EFFECTIVE LEGAL ENFORCEMENT PROCEDURE.

4. PORTFOLIO SHARE OF OVERDUE RECEIVABLES A SIMILAR PICTURE CAN BE SEEN IN ALL 22 COUNTRIES:BETWEEN ONE AND TWO THIRDS OF ALL RECEIVABLES ARE PAID LATE.

5. PAYMENT LOSS

6. SHAREINGLESSONS WITH TRADE CREDITORS BEST PRACTICE FORMULA FOR BETTERCREDITMANAGEMENT. 2–2–2-PLUS. Companies using 2-2-2-PLUS formula show the lowest paymentduration and payment losses. 2: Send the first reminder not later then 2 weeks after due date 2: Don’t send more then 2 remindersMore then 2 reminders are not worth the effort. Even if bad payers get moretime to pay with more reminders, payment losses tend to increase with longer payment time. 2: Don’t let the time between reminders be longer then two weeks. PLUS:Don’t hesitate to send your cases to outside collection agency. Sending cases for outside amicable collection within 2 months after due date rises potential success rate, up, even over 70% level. Don’t invoice if you know the customer do not pay.

7. COLLECTION PROCEDURES WHAT DRIVES DEBTOR TO PAY. • Continuous and systematic contact (remaindering)debtor has to be well informed (by you or collection agency) that youwatch every ofyours receivables. • Keeping faith with promisesnever delay your call if you promise you are going to check if thepayment arrives. Every delay ensures thedebtor you his payment is not so important for you at the moment. • Devote resources for watching your clients payments that activityshouldn’t be treated as additional task for FinancialDepartment(additional = less important) • Don’t hesitate with sending cases to collection agencytime worksagainst successful collection. Receivables unpaid very long,has gotvery low chances for successful collection.

8. COLLECTION PROCEDURES CREDIT MANAGEMENT SERVICES Invoice date Due date Write-off date Time line Low value Receivables Credit information& decision In-house Remaindering & Collection AmicableCollection In-house Remaindering & Collection Credit information& decision High value Receivables AmicableCollection Legal Service • Consumer • Commercial • International

9. COOPERATION WITH OUTSIDE AGENCY WHEN TO PASS THE FILE OVER (THE SOONER THE BETTER) COLLECTION SUCCESS RATE (PAYMENT RECEIVED) Due date Golden days High potentiality Medium potentiality Last chance days Write-off date AmicableCollection In-house Remaindering & Collection AmicableCollection Legal Service

10. COOPERATION WITH OUTSIDE AGENCY COSTS OF COLLECTION • REMINDER SERVICE • DUNNING LETTERS • PHONE REMINDERS / PLN 5 ~ 10 ACTION • DEBT COLLECTION. • THE PRICE DEPENDS ON: • NUMBER OF OUTSTANDING DAYS • CASE VALUE 2% ~ 15% OF COLLECTED AMOUNT

11. CONTACT Grzegorz Dmowskisprzedaż@intrum.pl