Vef Ab · OMXSTO:VEFAB
Vef Ab — Vostok Emerging Finance — Q2 2018 Earnings Presentation
34 slides from Vef Ab's earnings presentation, August 2018
Slide 1: 2Q18 Results Presentation
>EF Vostok Emerging Finance 2Q18 Results Presentation
Slide 2: 2Q18 Financial Highlights
2Q18 Financial Highlights Financial Result: • Net result for 2Q18 was USD 7.93 million (mln) (2Q17: USD 7.62 mln). Earnings per share were USD 0.012 (2Q17: USD 0.004). • Net result for the six-months period was USD 20.93 mln (1H17: 14.68 mln). Earnings per share were USD 0.032 (1H17: 0.022). • The p
Slide 3: 2Q18: Income Statement
2Q18: Income Statement Jan 1, 2018- Jan 1, 2017- Apr 1, 2018- Apr 1, 2017- Expressed in USD thousands Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Results from financial assets at fair value through profit or loss 21,976 14,573 7,771 7,005 Dividend and coupon income 1,887 1,395 1,780 1,316 To
Slide 4: 2Q18: Balance Sheet
2Q18: Balance Sheet Jun 30, 2018 Dec 31, 2017 Expressed in USD thousands NON-CURRENT ASSETS Tangible non-current assets Property, plant and equipment 3 - Total tangible non-current assets 3- Financial non-current assets Financial assets at fair value through profit or loss 212,216 189,406 Other fina
Slide 5: 2Q18 Event Highlights
2Q18 Event Highlights Key Events during the Second Quarter • Tinkoff paid a dividend of USD 0.31 per share on April 4, 2018, amounting to USD 0.93 mln. Another dividend of USD 0.24 per share was paid on June 21, 2018, at a value of USD 0.72 mln. • During April 2018, VEF sold 250k shares in TCS Group
Slide 6: 2Q18 Event Highlights
2Q18 Event Highlights Events after the End of Period • After the end of the period, VEF has repurchased 276,139 Swedish Depository Receipts (SDRs) in the Company. The total number of outstanding SDRs of the Company, excluding repurchased SDRs, as at August 22, 2018 is 660,235,134. • On July 9, Finja
Slide 7: VEF Portfolio
VEF Portfolio Gross Invested June '18 Fair Value Investment Company Geography Business Type % Ownership Amount ($ mn) ($ mn) Date Russia Digital Bank 1,6% 19,0 62,2 2007 Brazil Personal Finance Management 10,9% 30,0 30,0 Oct-17 Brazil Secured Lending Platform 10,0% 25,0 25,0 Dec-17 Turkey Payment Pr
Slide 8: Portfolio Commentary
Portfolio Commentary • At the end of Q2, we had 12 holdings in the portfolio, plus cash and liquid assets. • TCS is our largest holding while there is a clear divide between our 8 larger and 4 smaller holdings today. • Strong cash position (USD 18.1m) leaves us well positioned. • We would expect the
Slide 9: Portfolio Distribution By Geography (ex cash)
Portfolio Distribution By Geography (ex cash) Including all investments Excluding listed investments 9
Slide 10: VEF Share Price and NAV/Share Evolution
VEF Share Price and NAV/Share Evolution Rights issue Date Latest Share NAV / Share Discount NAV (USD mln) Market Cap Market Cap Price (SEK) (SEK) (SEK mln) (USD mln) June 30, 2018 2.01 2.98 32.8% 220.2 1,329.6 148.4 10
Slide 11: VEF Shareholder Structure, Largest Shareholders
VEF Shareholder Structure, Largest Shareholders Owner Holding, SDRs Holding, % Libra Fund 161,210,674 24.4% Fidelity FMR 66,149,599 10.0% Fidelity FIL 60,248,714 9.1% Swedbank Robur Funds 57,674,245 8.7% Wellington Management 33,736,296 5.1% Alecta Pension Insurance 33,500,000 5.1% Ruane Cunniff 27,
Slide 12: VEF - Investing in Leading Private Fintech Companies Across Emerging Markets
“VEF - Investing in Leading Private Fintech Companies Across Emerging Markets” Within emerging and frontier markets, we focus on the more populous and scalable markets, referenced Geography against competition for opportunities. We target all lines of financial services inclusive of payments, credit
Slide 13: Where Fintech Meets Emerging Markets
Where Fintech Meets Emerging Markets PAYMENTS OTHER FINTECH CREDIT Consumer Offline Accounting SaaS SME Online Wealth Management P2P Mobile Digital Banks Credit Scoring Remittances Mobile Wallets Comparison Websites Personal Finance Managers Insurance 13
Slide 14: Governance Structure
Governance Structure Ranjan Tandon Lars O Grönstedt Voria Fattahi Per Brillioth Chairman of the Board Milena Ivanova Board Member Board Member Experience: Experience: Experience: Board Member Board Member • Chairman and MD of • Investment Director at • Founder and Chairman, Experience: Experience: H
Slide 15: Our Portfolio Companies
>EF Vostok Emerging Finance Our Portfolio Companies
Slide 16: VEF Portfolio
VEF Portfolio Gross Invested June '18 Fair Value Investment Company Geography Business Type % Ownership Amount ($ mn) ($ mn) Date Russia Digital Bank 1,6% 19,0 62,2 2007 Brazil Personal Finance Management 10,9% 30,0 30,0 Oct-17 Brazil Secured Lending Platform 10,0% 25,0 25,0 Dec-17 Turkey Payment Pr
Slide 17: Tinkoff Bank
Tinkoff Bank • Business Type: Digital Banking Key • Founded: 2006 Year of investment: 2007 Facts • Ownership Stake: 1.6% • Key region: Russia All currency data are in RUB bn unless otherwise stated 17
Slide 18: Tinkoff Bank: Value coming through in New Business Lines
Tinkoff Bank Value coming through in New Business Lines Current Accounts SME Mortgages Investments All currency data are in RUB bn unless otherwise stated 18
Slide 19: Tinkoff Bank Share Price Evolution
Tinkoff Bank Share Price Evolution Sold down in Various Tranches: • 2017 – Sold 2.3m shares, avg price $16.81 (range $11.47-$20.10), yielding $33.9m. • 2018 – Sold 1.3m shares, avg net price $20.47 (range $19.94-$22.00), yielding $26.7m. Tinkoff – Our First Exit Summary of TCS position: Cost of posi
Slide 20: GuiaBolso
GuiaBolso • Type: Personal finance management Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 10.9% • Key region: Brazil Personal finance manager with the mission of 1 transforming the financial well being of Brazilians. The Credit Karma of Brazil. Leverage proprietary bank dat
Slide 21: Creditas
Creditas • Type: Secured consumer lending Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 10.0% • Key region: Brazil Creditas is a leading digital-first secured lending platform 1 with the mission of reducing the Brazilian consumer debt burden. Secured lending represents a $3tn
Slide 22: Iyzico
Iyzico • Type: Payment Processor Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 20.1% • Key region: Turkey Leading payment solutions provider for online retailers in 1 Turkey. Has over 18k live merchants and 325k seller accounts 2 under marketplaces. Turkey is the largest cons
Slide 23: Konfio
Konfio • Type: Digital SME Lending Key • Founded: 2014 Year of investment: 2018 Facts • Ownership Stake: 11.7% • Key region: Mexico A Mexican digital-first unsecured lending platform, with a 1 mission to support the growth of Mexico’s vast and underserved small business community. Mexico is Latin Am
Slide 24: REVO
REVO • Type: Merchant payments / consumer credit Key • Founded: 2012 Year of investment: 2015 Facts • Ownership Stake: 25% • Key region: Russia Key Merchant Partners Works with Russia’s online and offline merchants at POS to 1 increase conversion and basket size. Focus on small-ticket categories wit
Slide 25: REVO Metrics
Metrics June 2015 June 2016 June 2017 June 2018 No. of active stores 560 1,773 2,229 4,055 No. of installments granted 12,185 39,183 24,885 39,359 Avg. installment plan (Rub) 3,441 4,086 4,718 5,690 Avg. duration of installment plan 4.6 4.8 4.6 4.9 (months) Connected stores, # Monthly installment pl
Slide 26: JUMO
JUMO • Type: Mobile Money Marketplace Key • Founded: 2013 Year of investment: 2015 Facts • Ownership Stake: 7.6% • Key region: South Africa Largest-scale, low-cost, financial services platform for 1 FINANCIAL SERVICE PROVIDERS emerging markets. BARC LETH OM TAMR JUMO Capital Focus on key mobile mone
Slide 27: TransferGo
TransferGo • Type: Cross Border Remittances Key • Founded: 2012 Year of investment: 2016 Facts • Ownership Stake: 17.5% • Key region: EU Low-cost cross-border remittance provider focusing on 1 Western to Eastern Europe. Targeting blue-collar workers, some of the most consistent 2 and regular remitta
Slide 28: TransferGo Metrics
TransferGo Metrics June 2016 June 2017 June 2018 No. of active users* 37,645 59,253 100,124 Money flow (GBP mn) 15.3 23.6 39.7 Avg. ticket size (GBP) 370 370 364 Active Users*, # Monthly Money Flow, GBP mn 115000 35 95000 30 75000 25 20 55000 15 35000 10 15000 5 Mar'18 Nov '16 Jan'18 Nov'17 Sep '16
Slide 29: FinanZero
FinanZero • Type: Consumer Loan Marketplace Key • Founded: 2016 Year of investment: 2016 Facts • Ownership Stake: 23.7% • Key region: Brazil Business model - online broker of consumer loans Pioneering digital marketplace for consumer loans in 1 Brazil. 1 2 Applications from Highest quality applicant
Slide 30: Nibo
Nibo • Type: Accounting SaaS Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 15.5% • Key region: Brazil Nibo SaaS dashboard Leading Brazilian accounting SaaS provider for SMBs and 1 accountants SMBs Accountants 3 Nibo for Accounting General Has over 21k paying SMBs serviced thr
Slide 31: Magnetis
Magnetis • Type: Digital investment advisor Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 16.9% • Key region: Brazil Leading Brazilian digital investment advisor, offering 1 automated investment portfolios tailored to clients requirements. Large addressable market of US$720 b
Slide 32: Finja
Finja • Type: Mobile payments / loans marketplace Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 20.4% • Key region: Pakistan Pakistan, a scale emerging market, running behind India in 1 fintech evolution, but catching up. Finja, leading mobile wallet play in Pakistan, with bo
Slide 33: Outlook and Guidance 2018
>EF Vostok Emerging Finance Outlook and Guidance 2018
Slide 34: Opportunities and Outlook for 2018
Opportunities and Outlook for 2018 Strong portfolio of 12 holdings diversified across multiple scale geographies and lines of financial Strong portfolio services. Tinkoff is a big win and exit for us. We have also seen mark-up in valuation in a number of other Of note … portfolio holdings. EMEA and
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