Slide 1: Results Presentation 1Q22
Results Presentation 1Q22 The emerging market fintech investor
Slide 2: Key Events of the quarter
Key Events of the quarter The war in Ukraine - clear impact on a small part of VEFs portfolio The regional conflict has had mixed effects on 6.1% of VEF’s NAV, with operations in the region. Specifically, VEF has written down our 1 Russian portfolio holding, REVO, and our liquidity investments in Ti
Slide 3: 1Q22 financial highlights
1Q22 financial highlights NAV Financial result • NAV of VEF’s portfolio decreased during 1Q22 to USD 737.7 mln. NAV per • Net result for 1Q22 was USD -24.1 mln (1Q21: USD 15.3 mln). share decreased by 3.2% to USD 0.71 per share during 1Q22. Earnings per share were USD -0.02 (1Q21: USD 0.02). • In lo
Slide 4: NAV falls to USD 738 mln in 1Q22
NAV falls to USD 738 mln in 1Q22 NAV Evolution (USD mln) 1Q22 Russia/Ukraine impact 800 Net proceeds from Aug’21 capital raise 600 Net proceeds from Nov’20 capital raise 1Q20 400 COVID impact 200 0 Jun-17 Dec-15 Jun-16 Dec-16 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Sep-16 Sep-
Slide 5: General Portfolio valuation commentary
General Portfolio valuation commentary Top-down comments We are very aware of broader market and listed fintech share price sell-off and the resulting valuation multiple contraction. In tandem, we are seeing an overdue catch up in private market transaction valuations with their public peers Three p
Slide 6: Russia/Ukraine exposure
Russia/Ukraine exposure Two equity holdings and one liquidity placement with exposure to the region, 3.9% of NAV at the end of 1Q22 (6.1% at YE21): • TransferGo: 3.9% of NAV (3.8%). • REVO: 0% of NAV (1.7%) • Tinkoff bond: 0% of NAV (0.6%) The invasion and volatility is having mixed direct effects o
Slide 7: Healthy EM geographic positioning, currency tailwinds and portfolio well capitalised
Healthy EM geographic positioning, currency tailwinds and portfolio well capitalised VEF’s portfolio is tilted towards geopolitically and/or economic beneficiaries of the current crisis: • Strong BRL YTD has had a positive affect on USD translated revenues Indexed 2022 of over 60% of our portfolio.
Slide 8: Share price, NAV/share and the premium/discount
Share price, NAV/share and the premium/discount NAV/share & share price development 7,0 Premium/(Discount) to NAV 50% 6,0 40% 30% 5,0 20% 10% 4,0 0% 3,0 -10% -20% 2,0 -30% -40% 1,0 -50% 0,0 -60% dec-15 jun-16 dec-16 jun-17 dec-17 jun-18 dec-18 jun-19 dec-19 jun-20 dec-20 jun-21 dec-21 dec-15 jun-16
Slide 9: Portfolio commentary
Portfolio commentary VEF portfolio NAV as of 31-Mar-2022 • We have 16 holdings as of 1Q22, diversified by geography, USD 738 mln Portfolio business type and stage of development. evolution through • In 1Q22, we made two new investment: 1Q22 - USD 20 mln into Solfácil - USD 12 mln into Gringo Cash &
Slide 10: Creditas
Creditas Brazil’s leading digital-first secured lending platform Focus Asset Focused Ecosystem Fair value USD 394.1 mln Founded 2012 Investment USD 98.4 mln Key facts Key region Brazil Ownership stake 8.9% Share of NAV: 53.4% Year of investment 2017 Creditas in brief Creditas in figures Creditas is
Slide 11: Creditas' strong business model is reflected well in its financial metrics
Creditas Creditas’ strong business model is reflected well in its financial metrics 4 000 3 717 350 CAGR 322 CAGR 3 500 2021 YoY 198% 300 2 921 2021 YoY 159% 3 000 CY17-21 150% 257 250 CY17-21 175% 2 500 2 015 200 Credit 2 000 170 1 545 Revenue Portfolio 1 500 1 255 (R$ million) 150 124 (R$ million)
Slide 12: Creditas, product suite rollout and value creation history
Creditas, product suite rollout and value creation history With a loan book now standing at BRL 3.7b and significant strides in the ibuyer space, we see considerable upside in Creditas in the coming months 3Q20 4Q20 1H21 3Q21 4Q21 Creditas acquires Creditas acquires Creditas partners with Creditas $
Slide 13: Solfácil
Solfácil Brazil’s largest digital solar panel marketplace and financing platform Focus Solar Energy Financing Platform Fair value USD 20.0 mln Founded 2018 Investment USD 20.0 mln Key facts Key region Brazil Ownership stake 2.6% Share of NAV: 2.7% Year of investment 2022 Solfácil: The ecosystem for
Slide 14: Gringo
Gringo Brazil’s one-stop shop for drivers Focus Super-app for drivers Fair value USD 12.2 mln Founded 2020 Investment USD 12.2 mln Key facts Key region Brazil Ownership stake 10.2% Share of NAV: 1.7% Year of investment 2022 Gringo in figures Gringo is building a “super-app” for drivers in Brazil wit
Slide 15: Abhi
Abhi Employee wellness platform catering to the needs of employees between pay cycles Focus Salary on Demand Fair value USD 1.4 mln Founded 2021 Investment USD 1.4 mln Key facts Key region Pakistan Ownership stake 15.0% Share of NAV: 0.2% Year of investment 2021 Abhi is VEF’s second fintech investme
Slide 16: ESG - recently raised our debut social bond
ESG - recently raised our debut social bond Key terms Core areas for VEF’s sustainability work In early April, VEF issued SEK 500 mln (USD 53 mln) senior unsecured sustainability bonds. Three areas specifically relevant to VEF as an EM fintech investor: The bond issue was well received by Nordic ins
Slide 17: VEF publishes its new sustainability bond framework
VEF publishes its new sustainability bond framework The framework focuses on sustainable investments and sustainability as an integral part of the business
Slide 18: VEF investment case and outlook
VEF investment case and outlook Low exposure to the conflict region and Russian exposure now marked to zero The Russian invasion of Ukraine has had mixed effects on a small part of VEF’s NAV. Direct conflict related downside has been underwritten, as VEF has written down Russian holdings to zero. To
Slide 19: Appendix
Appendix
Slide 20: 1Q22 income statement
1Q22 income statement Ver Expressed in USD thousands I 1Q 2022 | 1@2021 Result from financial assets at fair value through profit or loss -21,721 16,304 Dividend and coupon income 97 97 Other income 164 - Administrative and operating expenses -2,492 -922 Employee incentive programs 4 -106 -123 Opera
Slide 21: 1Q22 balance sheet
1Q22 balance sheet VEFr NON-CURRENT ASSETS Tangible non-current assets Property, plantand equipment 79 102 Total tangible non-current assets 79 102 Financial non-current assets Financial assets at fair value through profit or loss 3 Equity financial assets 715,173 700,311 Liquid financial assets 16,
Slide 22: VEF portfolio summary
VEF portfolio summary Invested amount 1Q22 fair value Company Country Segment Investment date Ownership % (USD mln) (USD mln) Brazil Asset focused ecosystem Dec-17 8.9% 98.4 394.1 Mexico Diversified FS for Mexican SMEs Jun-18 10.3% 56.5 135.6 India Mobile payments platform Apr-20 9.7% 17.0 42.4 Emer
Slide 23: Portfolio NAV distribution by geography – excl. cash
Portfolio NAV distribution by geography – excl. cash Pakistan EMEA Emerging Africa 1% 7% Europe 3% 4% Asia 10% India 9% Mexico 19% Brazil 64% LatAm 83% 23