Slide 1: Results Presentation 3Q22
Results Presentation 3Q22 The emerging market fintech investor
Slide 2: Key events of the quarter
Key events of the quarter 3Q22 NAV – a more stable quarter Post 2Q22 NAV reset, VEF USD NAV was broadly flat QoQ in 3Q22, driven by relatively more stable inputs versus 1H22. Continue our robust valuation approach Our NAV and portfolio fair value conservatively reflects the current environment throu
Slide 3: 3Q22 financial highlights
3Q22 financial highlights NAV Financial result • NAV of VEF’s portfolio decreased during 9M22 to USD 444.9 mln. NAV per share • Net result for 3Q22 was USD 4.8 mln (3Q21: USD 51.8 mln). has decreased by 42.0% to USD 0.42 per share during 9M22. Earnings per share were USD 0.01 (3Q21: USD 0.06). • In
Slide 4: NAV Evolution
4 0 200 400 600 800 USD mln Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 NAV USD 445 mln in 3Q22 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 NAV Evolution Sep-19 Dec-19 Mar-20 1Q20 Covid impact Jun-20 Sep-20 Dec-20 Capital raises: 3Q21: USD 97 mln 4Q20: USD 58 mln Mar-21 Jun-21 1Q22
Slide 5: Markets and key fintech stocks flat to moderately down over the quarter
Markets and key fintech stocks flat to moderately down over the quarter Public fintech largely tracked the broader market in Q3, closing the quarter down low single digits. All performance figures in USD. Global Fintech Indices Market Indices ARKF -1% -62% -69% Nasdaq -4% -32% -27% 3Q 2022 return 3Q
Slide 6: Evolution of our valuation marks in 3Q22
Evolution of our valuation marks in 3Q22 QoQ % YoY % 3Q22 % of invested Fair value USD (thousands) 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 change change portfolio 102,078 169,023 169,023 169,023 169,023 394,123 394,069 195,936 211,328 8% 25% 48.9% 40,279 48,504 60,982 75,427 135,582 135,582 135
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… • For companies who have closed a significant equity transaction within the last 12 months, the terms and valuation of Mark-to-Model (MTM) that transaction serve a
Slide 8: Valuation approach and key take-aways (2/2)
Valuation approach and key take-aways (2/2) 3Q fair value Change QoQ Valuation Company (USD mln) (USD mln) methodology Last transaction details Portfolio valuation 211.3 +15.4 Calibration USD 50 mln extension to its USD 260 mln Series-F, closed Jul-22 61.1 +0.0 MTM - • Total 3Q22 NAV is USD 444.9 ml
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 has already been significantly reset to reflect the current Majority of the portfolio valued based on mark-to-model, with 1 market environment 2 the rem
Slide 10: Creditas 1H 2022 trading statement
Creditas 1H 2022 trading statement 1H 2022 update Summary overview Portfolio Under Management & New Originations New environment in 2022 BRL mln • Rising inflation and rates with ensuing macro deterioration 5 040 +151% 5 040 Clear impact on operational margins, driven by: 4 436 3 717 1. Increase in
Slide 11: Creditas 1H 2022 trading statement (cont’d)
Creditas 1H 2022 trading statement (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 H1 2022 • Maintaining r
Slide 12: Share price, NAV/share and the premium/discount
Share price, NAV/share and the premium/discount NAV/share & share price development 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% 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 jun-22 dec-1
Slide 13: Closing the discount to NAV
Closing the discount to NAV The discount to NAV averaged 46% through 3Q22. 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 5.8 mln V
Slide 14: 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 56.3 Bond • Interest: Stibor 3m + 725 bp paid quarterly - 10 • Maturity: April 2025 -3 -6 P
Slide 15: Sustainability and ESG
Sustainability and ESG Our capital positively impacts the financial inclusion of consumers and MSMEs in EM while staying true to our mandate of maximizing returns <> “VEF invests into Mahaana, Pakistan’s first Digital Wealth “JUMO earns B Corp Certification ” Management Company ” 28 September 2022 2
Slide 16: VEF investment case and outlook
VEF investment case and outlook 1H22 played defence as market mood music changed: 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 (67% of portfolio), ensuring they were in a st
Slide 17: Appendix
Appendix
Slide 18: 3Q22 income statement
3Q22 income statement Ver Cerntnin SO avd eo en aaa Result from financial assets at fair value through profit or loss -313,752 73,878 Coupon income 293 292 98 97 Other income 79 8 5 8 Administrative and operating expenses -6127 -6,230 -1,426 -2,213 Operating result -319,407 67,948 2,240 52,237 Finan
Slide 19: 3Q22 balance sheet
3Q22 balance sheet NON-CURRENT ASSETS. Sep30, 2022 Tangible non-current assets. Property, plant and equipment 2 102 Total tangible non-current assets 2 102 Financial non-currontassets Financial assets at fair value through profit or loss Equity financial assets 432,321 700,31 Liquid financial assets
Slide 20: VEF portfolio summary
VEF portfolio summary Invested amount 3Q22 fair value Company Country Segment Investment date Ownership % (USD mln) (USD mln) Brazil Asset focused ecosystem Dec-17 8.7% 98.4 211.3 Mexico Diversified FS for Mexican SMEs Jun-18 10.3% 56.5 61.1 India Mobile payments platform Apr-20 9.9% 21.1 47.5 Brazi
Slide 21: Portfolio distribution by geography
Portfolio distribution by geography Liquidity Liquidity placements placements 9% Africa 9% Emerging 2% Pakistan Europe & Africa 3% 6% Emerging Europe 4% South Asia 17% Mexico 13% Brazil 55% Latin America India 68% 14% 21
Slide 22: Thank you
Thank you The emerging market fintech investor