Slide 1: Results Presentation 1Q23
Results Presentation 1Q23 The emerging market fintech investor
Slide 2: Key events of the quarter
Key events of the quarter 1Q23 NAV – Early signs of NAV recovery NAV ended the quarter at USD 410 mln, up 7.5% QoQ. Fintech listed shares trended higher over the quarter, a key factor. Juspay a key positive driver in the quarter A move to model valuation approach, released value from Juspay into our
Slide 3: 1Q23 financial highlights
1Q23 financial highlights NAV Financial result • NAV of VEF’s portfolio increased in 1Q23 to USD 410.4 mln. NAV per share has • Net result for 1Q23 was USD 28.4 mln (1Q22: USD -24.1 mln). increased by 7.5% to USD 0.39 per share during 1Q23. Earnings per share were USD 0.03 (1Q22: USD -0.02). • In SE
Slide 4: NAV Evolution
4 0 200 400 600 800 USD mln Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 NAV USD 410 mln in 1Q23 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 NAV Evolution Dec-19 Mar-20 1Q20 Covid impact Jun-20 Sep-20 Capital raises: Dec-20 3Q21: USD 97 mln 4Q20: USD 58 mln Mar-21 Jun-21 1Q22 impact
Slide 5: Strong rebound in high growth and tech-heavy indexes across 1Q 2023
Strong rebound in high growth and tech-heavy indexes across 1Q 2023 Despite continued macro uncertainty and banking crisis concerns driving volatility throughout the quarter, markets closed 1Q 2023 in positive territory, with tech-heavy indexes outperforming, delivering double-digit returns. All per
Slide 6: Evolution of our valuation marks in 1Q23
Evolution of our valuation marks in 1Q23 QoQ % YoY % 1Q23 % of Fair value USD (mln) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 change change invested portfolio Creditas 169.0 169.0 169.0 394.1 394.1 195.9 211.3 193.1 198.7 3% -50% 48.1% Juspay 18.7 24.7 28.7 42.4 42.4 47.5 47.5 47.5 62.8 32% 48% 1
Slide 7: Valuation approach and key take-aways (1/2)
Valuation approach and key take-aways (1/2) T0 T + 12 months Latest significant equity transaction T0 – T+12 months T+12 months onwards… Mark-to-Model (MTM) • For companies who have closed a significant equity transaction within the last 12 months, the terms and valuation of that transaction serve a
Slide 8: Valuation approach and key take-aways (2/2)
Valuation approach and key take-aways (2/2) 1Q fair value Change QoQ Valuation Company Comments / Last transaction details Portfolio valuation (USD mln) (USD mln) methodology 198.7 +5.6 MTM Moved to MTM from calibration Moved to MTM from last trx following 12 months and business 62.8 +15.4 MTM perfo
Slide 9: NAV and portfolio performance
NAV and portfolio performance NAV and portfolio fair value conservatively reflects the current environment through a robust valuation framework NAV significantly reset in 2022 to reflect the environment, now Majority of the portfolio valued based on mark-to-model, with the 1 resuming our growth traj
Slide 10: 1Q23 NAV Evolution
1Q23 NAV Evolution Evolution in NAV primarily driven by moves to MTM and market impact in 1Q23 1Q23 NAV Bridge Key takeaways USD mln • Total USD NAV ended the quarter at USD 410.4 mln, up Portfolio valued on MTM & calibration Portfolio valued on latest trx Corporate USD 28.5 mln / 7.5% QoQ (91% of i
Slide 11: Creditas 4Q 2022 financial results
Creditas 4Q 2022 financial results 4Q 2022 update Summary overview Portfolio Under Management & New Originations New environment in 2022 BRL mln • Elevated inflation and rates with macro deterioration Clear impact on operational margins, driven by: 1. Increase in SELIC: c.70% of Creditas loans are p
Slide 12: Creditas 4Q 2022 financial results (cont'd)
Creditas 4Q 2022 financial results (cont’d) Financial results Path to profitability & future outlook Creditas P&L (IFRS) With peak inflation and interest rates likely behind us, Creditas’ path to profitability will be driven by: BRL mln FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 • Maintaining r
Slide 13: Juspay
Juspay Leading mobile payments platform for online merchants in India Product suite Value proposition Key stats Payments orchestration platform India’s leading platform with multiple payment options $100 bln+ 50%+ and smart routing systems to boost transaction success Superior UX improves NPS Experi
Slide 14: VEF's maiden sustainability bond allocation and impact report
VEF’s maiden sustainability bond allocation and impact report SEK 500 mln of sustainability bonds outstanding, fully allocated in line with our sustainability bond framework Sustainability bond allocation Sustainability bond framework The gross proceeds from issued sustainability bonds were used to
Slide 15: Share price, NAV/share and the premium/discount
Share price, NAV/share and the premium/discount NAV/share & share price development Premium/(Discount) to NAV 7 60% 6 40% 5 20% 4 0% 3 -20% 2 -40% 1 -60% 0 -80% jan-16 jul-16 jan-17 jul-17 jan-18 jul-18 jan-19 jul-19 jan-20 jul-20 jan-21 jul-21 jan-22 jul-22 jan-23 jan-16 jul-16 jan-17 jul-17 jan-18
Slide 16: Closing the discount to NAV
Closing the discount to NAV The discount to NAV averaged 43% through 1Q23. We have several ongoing initiatives aimed at addressing the discount: VEF initiative Details Anticpated effects • Initiated Aug-22 • Up to USD 10 mln in size • Demonstrate confidence in our NAV Buyback • Bought back 12.8 mln
Slide 17: Capital position – comfort with controllables
Capital position – comfort with controllables Solid cash position to cover business and portfolio needs Expected cashflows to YE23 USD mln • SEK 500 mln outstanding VEF • Frame of SEK 1,000 mln Sustainability 45.7 Bond • Interest: Stibor 3m + 725 bp paid quarterly -6 • Maturity: April 2025 -3 -4 -5
Slide 18: VEF investment case and outlook
VEF investment case and outlook 2022 played a strong defence and reset valuations: 1. Strengthened our balance sheet, raising our first sustainability bond 2. At portfolio level, we overly focused on our size holdings, namely Creditas, Konfío and Juspay (~75% of portfolio), ensuring they were in a
Slide 19: Appendix
Appendix
Slide 20: 1Q23 income statement
1Q23 income statement a De Result from financial assets at fair value through profit or loss Coupon income - 97 Other income - 164 Administrative and operating expenses 2,420 -2,508 Operating result 29,868 -24,058 Financial income and expenses Interest income 5 - Interest expense 4,284 6 Currency ex
Slide 21: 1Q23 balance sheet
1Q23 balance sheet NON-CURRENT ASSETS Tangible non-current assets Property, plant and equipment 145 166 Total tangible non-current assets, 145 186 Financial non-current assets Financial assets at fair value through profit or loss Equity financial assets 412,782 380,800 Liquid financial assets 37172
Slide 22: VEF portfolio summary
VEF portfolio summary Invested amount 1Q23 fair value Company Country Segment Investment date Ownership % (USD mln) (USD mln) Creditas Brazil Asset focused ecosystem Dec-17 8.5% 103.4 198.7 Juspay India Mobile payments platform Apr-20 10.2% 21.1 62.8 Konfio Mexico Diversified FS for Mexican SMEs Jun
Slide 23: Portfolio distribution by geography
Portfolio distribution by geography Liquidity Liquidity placements Africa placements 8% 0% 8% Emerging Pakistan Europe & Africa 2% 4% Emerging Europe 4% Mexico 11% South Asia 20% Brazil India 57% Latin 18% America 68% 23
Slide 24: Thank you
Thank you The emerging market fintech investor