Slide 1: Results presentation 3Q 2020
Results presentation 3Q 2020 The emerging market fintech investor 1
Slide 2: 3Q20 Highlights
— Results presentation 3Q20 Highlights EM Fintech and COVID-19 • The ongoing disruption caused by COVID continues to drive positive momentum behind the shift to digital financial services by all Heightened Sector M&A Activity • We see an increased level of IPO/M&A activity across the emerging market
Slide 3: 3Q20 Financial Highlights
— Results presentation 3Q20 Financial Highlights NAV Financial Result • NAV up 20% QoQ to USD 268.2m • 3Q20: Net result USD 44.4m (3Q19: USD 10.7m), EPS of USD 0.07 (3Q19: USD 0.02) • In local currency, NAV up 16% to SEK 2,409m or SEK 3.63 per share • 9M20: Net result USD 19.0m (9M19: USD 47.8m), EP
Slide 4: NAV Up 20% QoQ to a Fresh High of USD 268.2m
— Results presentation . NAV Up 20% QoQ to a Fresh High of USD 268.2m VEF NAV Evolution (USDm) 300 Q2 & Q3 Q1 Post-COVID COVID growth Q1 impact 250 • COVID-19 impact; NAV decrease of 25% 200 Q2 • Clarity and confidence returns; 20% 150 NAV recovery 100 Q3 • Portfolio back on a growth footing; 50 NAV
Slide 5: 3Q20 NAV Evolution QoQ
— Results presentation 3Q20 NAV Evolution QoQ Fair Value (USDm) QoQ Change Company Geography Business Type Valuation Method 2Q20 3Q20 (%) (USDm) Brazil Secure Lending Platform 80.7 102.1 26.5% 21.4 MTM Mexico Diversified Financials for SMBs 28.1 40.3 43.4% 12.2 MTM Emerging Europe Cross-Border Remit
Slide 6: Creditas – North Star Investment and Driving NAV
— Results presentation Creditas – North Star Investment and Driving NAV Creditas Stake Valuation Since Initial Investment (USDm) Creditas recently published the company’s first press release, detailing the company’s performance over the last Mark-to-model 102.1 12 months 100 Investment As of August
Slide 7: Corporate Action – High Level of IPO and M&A Activity Across Our Investment Theme
— Results presentation Corporate Action – High Level of IPO and M&A Activity Across Our Investment Theme Fintech Funding in 20191 Global Fintech M&A2 # of transactions Financing Volume (USDb) 17.0 910 920 873 270 738 603 208 192 1,813 8.2 7.6 108 128 4.5 4.4 2.6 90 317 302 76 0.2 B an kin g/ Le n d
Slide 8: Pipeline Heating Up
— Results presentation Pipeline Heating Up Work on pipeline across the geographies of Mexico, Brazil, India and frontier markets Egypt and Pakistan intensified through Q3 and we expect to convert new investments in the coming months. Egypt Pakistan Mexico India Brazil 8
Slide 9: Portfolio Mix and Commentary
— Results presentation Portfolio Mix and Commentary Portfolio Evolution Through 2020 VEF NAV as at September 30th 2020 • We have 12 holdings as of 3Q20, diversified by geography, business USD 268.2m type and stage of development. • In 2020, we made our first investment in India: Invested USD 13m Cas
Slide 10: Portfolio NAV Distribution by Geography, ex cash
— Results presentation Portfolio NAV Distribution by Geography, ex cash Pakistan Asia Africa 2% 7% Russia 3% 5% India 5% EMEA 18% Emerging Europe 10% Brazil 59% Mexico 16% LatAm 75% 10
Slide 11: Share Price, NAV/Share and the Discount
— Results presentation Share Price, NAV/Share and the Discount Share Price, NAV/share Discount to NAV 4.0 40% 3.5 3.0 30% 2.5 2.0 20% 1.5 1.0 10% 0.5 0.0 0% Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 NAV/Share Share Price Discount to NAV (%) Date Latest Share Price (SEK) N
Slide 12: Outlook and Guidance to YE20 and beyond
— Results presentation Outlook and Guidance to YE20 and beyond Digital Finance, a COVID Winner We expect the on-going disruption caused by COVID to maintain the momentum behind the shift to digital financial services by all, a trend that many of VEF's portfolio companies should continue to benefit f
Slide 13: Appendix
— Results presentation. Appendix 13 12
Slide 14: 3Q20 Income Statement
— Results presentation 3Q20 Income Statement 1. Financial assets at fair value through profit or loss are carried at fair value. Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category is presented in the income statement within
Slide 15: 3Q20 Balance Sheet
— Results presentation 3Q20 Balance Sheet 15