Vef Ab · OMXSTO:VEFAB
Vef Ab — Vostok Emerging Finance — Q1 2020 Earnings Presentation
19 slides from Vef Ab's earnings presentation, April 2020
Slide 1: 1Q20 Results Presentation
>EF Vostok Emerging Finance 1Q20 Results Presentation
Slide 2: VEF and the Current Crisis
VEF and the Current Crisis This is just another crisis in emerging markets Gradual impact, time to prepare, positioned and ready Defense first, survive and then thrive VEF and its portfolio companies are well-funded Focus on cash over growth in the short term Fintech is a medium to long-term winner
Slide 3: Fintech – The Future of Finance Has Become Clearer to All
Fintech – The Future of Finance Has Become Clearer to All • A move by society to all things digital given new working and social dynamics. • Major shift to digital channels for financial services – customers are moving away from cash and no longer queuing in bank branches; increase in use of ecommer
Slide 4: 1Q20 Financial Highlights and Key Developments
1Q20 Financial Highlights and Key Developments Net asset value Key developments • NAV decreased by 25.3% during the quarter to USD 186.43 • New USD 13mln investment in Juspay, one of India’s leading mln or USD 0.29 per share. payment companies. • In local currency, NAV decreased by 19.2% to SEK 1,87
Slide 5: VEF NAV Evolution Since Inception
VEF NAV Evolution Since Inception 5
Slide 6: 1Q20 NAV Valuation Approach
1Q20 NAV Valuation Approach Calibration methodology • In light of the pandemic, 6 companies have now been valued using a new calibration methodology. • Under this method, inputs used for each include Covid-19 risk adjusted revenue forecasts, currency moves and the implied revenue multiple paid at th
Slide 7: 1Q20 NAV Evolution Versus YE19
1Q20 NAV Evolution Versus YE19 Dec'19 Fair Value Mar'20 Fair Value QoQ Change QoQ Change Company Geography Valuation Method (USD mln) (USD mln) (%) (USD mln) Brazil 73.2 50.4 -31% -22.9 Calibration Methodology Mexico 41.6 32.4 -22% -9.2 Calibration Methodology Emerging Europe 12.6 13.5 8% 1.0 Calibr
Slide 8: VEF Portfolio
VEF Portfolio Invested Amount Mar'20 Fair Value Difference Difference Investment Company Geography Business Type % Ownership (USD mln) (USD mln) (%) (USD mln) Date Creditas Brazil Secured Lending Platform 9.6% 48.5 50.4 3.8% 1.9 Dec-17 Konfio Mexico SME Lending 11.4% 27.5 32.4 17.7% 4.9 Jun-18 JUMO
Slide 9: Portfolio Commentary
Portfolio Commentary • Today we have 12 holdings in the portfolio, diversified by geography, business type and stage of development, with Jupsay the latest addition and our first investment in India. • Exits – Completed exits of Tinkoff & iyzico in 2019, both yielding 60%+ IRRs each. • Creditas and
Slide 10: Portfolio NAV Distribution by Geography (ex cash)
Portfolio NAV Distribution by Geography (ex cash) 10
Slide 11: Cash Position & Invested Portfolio
Cash Position & Invested Portfolio • $24mn cash position at end of 1Q20, which will trend to c. $20mn through 2Q20 as we close 2 further portfolio company funding rounds. • Cost-focused measures have seen expected 2020 cost budget of $3-3.5mn, versus 2019 of $5.7mn. • There is no debt/leverage in th
Slide 12: Juspay
Juspay • Type: Digital Payments Key • Founded: 2012 Year of investment: 2020 Facts • Ownership Stake: 9.9% • Key region: India Our first investment into India, Juspay is the country’s 1 leading mobile payments platform for online merchants. India has one of the most advanced and complex electronic 2
Slide 13: Share Price, NAV/Share and the Discount
Share Price, NAV/Share and the Discount Share Price, NAV/share Discount to NAV Date Latest Share Price NAV/Share* Discount NAV* Market Cap (SEK) (SEK) (USD mln) (USD mln) Apr 24, 2020 2.40 2.88 16.7% 186.4 158.8 * As at March 31, 2020 13
Slide 14: Outlook and Guidance for 2020
Outlook and Guidance for 2020 Crisis time – Everything has changed for both VEF and our portfolio companies - we have ripped up our plans and everything has budgets for 2020 and gone on a war footing - focusing on cash, cash burn, capital, costs and funding, changed while prioritising runway and opt
Slide 15: Appendix
>EF Vostok Emerging Finance Appendix
Slide 16: Key VEF Currency trends, from Mid-February
Key VEF Currency trends, from Mid-February -27% -34% -17% -6% -3% -4% 16
Slide 17: Benchmark Public Fintech Companies
Benchmark Public Fintech Companies -40% -39% -47% -2% -26% -54% 17
Slide 18: 1Q20 Income Statement
1Q20 Income Statement Expressed in USD thousands Result from financial assets at fair value through profit or loss' Dividend and coupon income Total operating profit Operating expenses General administrative expenses Employee incentive programs Total operating expenses Operating result Financial inc
Slide 19: 1Q20 Balance Sheet
1Q20 Balance Sheet 31,2020 Dec31,2019 ‘Tangible non-current assets Property, plant and equipment ‘Total tangible non-current assets Financial non-current assets Financial assets at fair value through profit or loss Equity financial as 210,387 Liquid financial asset y 34621 Other financial assets 11
Vostok Emerging Finance — Q1 2020 Earnings Presentation on 6ix