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

2. 2 INTRUM JUSTITIA THE VIEWPOINT OF THE EU MEMBERS THE MOST IMPORTANT OBSTACLE TO TRADE IN THE VIEW OF THE EU MEMBER STATES IS PAYMENT UNCERTAINTY 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.

3. 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 MANAGEMENT PROCESS, AND BY AN EFFICIENT AND EFFECTIVE LEGAL ENFORCEMENT PROCEDURE.

4. 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. 5 PAYMENT LOSS

6. 6 BEST PRACTICE FORMULA FOR BETTER CREDIT MANAGEMENT. 2–2–2-PLUS. Companies using 2-2-2-PLUS formula show the lowest payment duration and payment losses. 2: Send the first reminder not later then 2 weeks after due date 2: Don’t send more then 2 reminders More then 2 reminders are not worth the effort. Even if bad payers get more time 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. SHAREING LESSONS WITH TRADE CREDITORS

7. 7 WHAT DRIVES DEBTOR TO PAY. Continuous and systematic contact (remaindering) debtor has to be well informed (by you or collection agency) that you watch every of yours receivables. Keeping faith with promises never delay your call if you promise you are going to check if the payment arrives. Every delay ensures the debtor you his payment is not so important for you at the moment. Devote resources for watching your clients payments that activity shouldn’t be treated as additional task for Financial Department (additional = less important) Don’t hesitate with sending cases to collection agency time works against successful collection. Receivables unpaid very long, has got very low chances for successful collection. COLLECTION PROCEDURES

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

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

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

11. 11 CONTACT Grzegorz Dmowski sprzedaż@intrum.pl