Slide 1: Q2 and 1H17 results presentation
Q2 and 1H17 results presentation
Slide 2: Q2 and 1H17 financial highlights
Q2 and 1H17 financial highlights § Positive net result for 2Q17: ü Q217 was USD 7.6 mln and EPS was USD 0.0039 ü 1H17 was USD 14.7 mln and EPS was USD 0.022 § The positive net result over the first six months was primarily driven by the revaluation of REVO/Sorsdata coupled with a positive share pric
Slide 3: 1H17: Income Statement
1H17: Income Statement (USD thousands) 1H17 1H16 2Q17 2Q16 Results from financial assets at fair value 14, 573 12,735 7,005 10,211 Dividend and coupon income 1,395 1,353 1,316 1,279 Total Operating Income 15,968 14,088 8,321 11,490 Operating expenses -1,765 -831 -1,060 -458 Operating result 14,203 1
Slide 4: 1H17: Balance Sheet
1H17: Balance Sheet (USD thousands) June 30, 2017 June 30, 2016 December 31, 2016 Financial non-current assets 147,548 72,082 120,155 Current assets 12,116 36,748 24,998 Total assets 159,664 108,857 145,182 Equity 159,231 108,770 144,326 Trade payables – 11 – Other current liabilities 225 40 732 Acc
Slide 5: Q217 Event highlights
Q217 Event highlights § Investments in the quarter: ü FinanZero – Led a USD 0.5 mln internal bridge round ü Finja – Finalised our USD 1 mln investment as part of a larger funding round ü Nibo – Invested USD 3.3 mln into a fast growth Brazilian Accounting Saas play ü TransferGO – Invested an addition
Slide 6: Portfolio
Portfolio Company Geography Business Type % Ownership 30 June '17 Fair Value ($) Investment Year Russia Digital Bank 3.5% 73 367 631 2007 Russia Payments & Consumer Credit 25.0% 14 151 131 2015 Africa Mobile Money Marketplace 7.6% 12 705 768 2015 Turkey Payment Processing 20.9% 9 000 000 2017 Brazil
Slide 7: Portfolio commentary
Portfolio commentary VEF Portfolio as at June 30, 2017 NAV: USD 159.2mn • We have 8 holdings in the portfolio today plus cash and liquid assets FinanZero • TCS is our largest holding while there 1% Cash / Liquid is a clear divide between our 4 larger Finja Assets 1% and 4 smaller holdings today 23%
Slide 8: Portfolio Distribution (ex cash)
Portfolio Distribution (ex cash) Emerging By Geography By Geography (ex TCS) Europe Pakistan Pakistan 5% 1% Emerging 2% Europe Brazil 13% 4% Turkey Russia 7% 29% Brazil Africa 11% 11% Russia Turkey 72% 19% Africa 26% >8
Slide 9: VEF share price and NAV evolution
VEF share price and NAV evolution NAV Rights Issue Share Price 2,10 1,90 1,70 SEK 1,50 1,30 1,10 0,90 Date Latest Share NAV / Share Discount NAV (USD mn) Market Cap Market Cap Price (SEK) (SEK) (SEK mn) (USD mn) 23/08/2017 1.75 2.07 15.5% 168.7 1,230.4 142.3 >9 9
Slide 10: VEF shareholder structure
VEF shareholder structure Largest Shareholders Owner Holding, SDRs Holding, % Libra Fund 154,126,431 23.3% Fidelity FMR 66,149,599 10.0% Fidelity FIL 60,248,714 9.1% Swedbank Robur Funds 57,674,245 8.7% Alecta Pension Insurance 33,500,000 5.1% Ruane Cunniff 32,967,270 5.0% Bank Julius Baer & Co 18,3
Slide 11: Investing in leading fintech companies across emerging markets
“Investing in leading fintech companies across emerging markets” Within emerging and frontier markets, we focus on the more populous and scalable Geography markets cross referenced against competition for opportunities We target all lines of financial services inclusive of payments, remittances, mob
Slide 12: Where Emerging Markets meet fintech
Where Emerging Markets meet fintech Consumer Offline Saas CREDIT OTHER PAYMENTS SME Online Wealth Management P2P Mobile Digital Banks Credit Scoring Remittances Equity Crowdfunding Comparison Websites Qualified Leads Insurance >12
Slide 13: Created post Vostok Nafta split
Created post Vostok Nafta split VNV portfolio VEF portfolio (1997–2015) (2015+) (2015+) >13
Slide 14: Board of Directors, Management, Investment team/IR
Ranjan Tandon Lars O Grönstedt Voria Fattahi Board Member Per Brillioth Chairman of the Board Milena Ivanova Board Member Experience: Experience: Experience: • Founder and Board Member • Chairman and MD of Board Member • Investment Director Chairman, Libra Experience: Handelsbanken Experience: at Vo
Slide 15: The Portfolio
The Portfolio >15 15
Slide 16: Portfolio
Portfolio Company Geography Business Type % Ownership 30 June '17 Fair Value ($) Investment Year Russia Digital Bank 3.5% 73 367 631 2007 Russia Payments & Consumer Credit 25.0% 14 151 131 2015 Africa Mobile Money Marketplace 7.6% 12 705 768 2015 Turkey Payment Processing 20.9% 9 000 000 2017 Brazil
Slide 17: Tinkoff Bank
Tinkoff Bank • Business Type: Digital Banking Recent highlights Key • Founded: 2006 Year of investment: 2007 Facts • Ownership Stake: 3.5% • # of current account customers passed 2m during Q117 • Key region: • ROAE at 42.8% for Q217 A market still dominated by old world financial 1 institutions, but
Slide 18: Tinkoff Bank
Tinkoff Bank Major changes in Russian retail finance, Tinkoff is #2 credit card issuer in Russia and growing driven by: market share • Economic situation • The regulator + • New technology Tinkoff.ru – the concept Tinkoff.ru – the concept Unique Opportunity: • Smoothen cyclicality of credit business
Slide 19: Tinkoff Bank
Tinkoff Bank Net income (RUBbn) Return on assets Profit at RUB 3.7bn in 4Q16 7,7% 8,7% 3,7 7,3% 7,7% 6,8% 3,4 3,4 5,3% 5,3% 2,9 2,5 3m'16 3m'17 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 1,9 1,9 Return on equity 42,8% 51,4% 32,3% 41,5% 43,4% 42,8% 32,3% 3m'16 3m'17 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 3m'16 3m'17 1Q'16
Slide 20: REVO
REVO • Type: Merchant payments / consumer credit Key Merchant Partners Key • Founded: 2012 Year of investment: 2015 Facts • Ownership Stake: 25% 64.5% • Key region: Works with Russia’s on and offline merchants at 1 POS to increase conversion and basket size Focus on small ticket categories with $100
Slide 21: REVO
REVO Metrics Dec 2014 Dec 2015 Dec 2016 June 2017 No. of active stores 572 1,623 1,970 2,235 No. of installments granted 9,969 41,217 51,774 24,885 Avg. installment plan (Rub) 3,852 4,103 4,225 4,718 Avg. duration of installment plan (months) 4.9 4.6 4.7 4.6 Avg. APR of installment plans 84% 96% 95.
Slide 22: JUMO
JUMO • Type: Mobile Money Marketplace Key • Founded: 2013 Year of investment: 2015 Facts • Ownership Stake: 7.6% • Key region: FINANCIAL SERVICE PROVIDERS Mobile money marketplace for individuals and JUMO 1 FSPs small businesses Capital Focus on key mobile money markets of Africa and 2 beyond JUMO M
Slide 23: Iyzico
Iyzico • Type: Payment Processor Key Merchant Partners Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 20% • Key region: Leading Turkish payment solution provider for 1 online retailers Has over 8,500 live merchants and 160,000 seller 2 accounts under marketplaces Turkey is Eur
Slide 24: TransferGo
TransferGo • Type: Cross Border Remittances Key • Founded: 2012 Year of investment: 2016 Global Remittance Volumes ($bn) Facts • Ownership Stake: 9.8% • Key region: $800,00 Low cost cross border remittance provider $700,00 1 focusing on Western to Eastern Europe $600,00 $268,00 Targeting blue-collar
Slide 25: TransferGo
TransferGo Metrics Dec 2015 Mar 2016 Jun 2016 Sep 2016 Dec 2016 Mar 2017 No. of active users* 27,800 32,522 37,645 40,461 51,792 54,001 Money flow (GBP mn) 7.1 9.8 15.3 14.4 19.0 21.3 Avg. ticket size (GBP) 240 269 370 370 335 349 Active Users*, # Monthly Money Flow, GBP 60000 23 55000 21 50000 19 4
Slide 26: FinanZero
FinanZero • Type: Consumer Loan Marketplace Key • Founded: 2016 Year of investment: 2016 Facts • Ownership Stake: 23.8% • Key region: Pioneering marketplace for consumer loans in 1 OLX Other Digital Leads Brazil Partnered with range of banks and credit 2 institutions offering most suitable loans for
Slide 27: Nibo
Nibo • Type: Accounting SaaS Nibo SaaS dashboard Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 15.4% • Key region: Leading Brazilian accounting SaaA provider for 1 SMBs and accountants Has over 2,000 accountants servicing thousands of 2 their SMB customers. Large addressable
Slide 28: Finja
Finja • Type: Mobile payments and loans marketplace Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 22.9% • Key region: Newly established fintech company in Pakistan 1 with a mission to offer innovative financial services by displacing cash. The SimSim mobile wallet commerciall
Slide 29: Outlook and Guidance
Outlook and Guidance >29 29
Slide 30: Opportunities and outlook for 2017
Opportunities and outlook for 2017 Portfolio starting to show clear early performers with Tinkoff Bank … and Revo stand out names EMEA and Latin America now core regions of focus for us, we are well … entrenched and have a healthy pipeline Well on track to deliver on our target of building a portfol