Vef Ab · OMXSTO:VEFAB
Vef Ab — Investor Presentation (April 2025)
37 slides from Vef Ab's investor presentation, April 2025
Slide 1: Investor Presentation
Investor Presentation April 2025 The emerging market fintech investor
Slide 2: Agenda
Agenda A Introduction to VEF B 1Q25 Results Overview C Exits and Capital Update D Key Portfolio Companies E Sustainability 2
Slide 3: VEF at a Glance − the emerging market fintech investor
VEF at a Glance − the emerging market fintech investor Riding one of the strongest multi-year secular growth trends in some of the world’s fastest-growing markets Listed investment company • Listed in Sweden since July 2015 ̶ VEF AB (publ) • We were spun out from VNV Global, with a 3% stake in Tinko
Slide 4: Clear investment approach coupled with deep fintech expertise
Clear investment approach coupled with deep fintech expertise Targeted investment approach with a clear mandate… …and deep expertise across the fintech spectrum • Consumer SECTOR • SME CREDIT • Secured We target all lines of financial services inclusive of payments, credit and • Unsecured savings/in
Slide 5: A diversified portfolio across scale emerging markets
A diversified portfolio across scale emerging markets VEF has backed entrepreneurs across the emerging world since inception in 2015 Portfolio companies Portfolio composition As at 31 March 2025 Geographic Breakdown1 Emerging Europe Emerging Pakistan Europe 1% 7% Mexico Pakistan 20% $374M1 Brazil 47
Slide 6: Strong track record of investing in benchmark private fintech names across EM
Strong track record of investing in benchmark private fintech names across EM Present in one of the top 3 private fintech assets each in Brazil, Mexico & India. Track record of backing and successfully exiting fintech champions across Brazil, India, Turkey & Russia Current investments in two of LatA
Slide 7: Clear mandate with a proven strategy – strong track record of delivering returns
Clear mandate with a proven strategy – strong track record of delivering returns Proven track-record in value-creation and Ability to identify and access benchmark Driving our strong history of long-term successful exits private fintech names across EM shareholder return Brazil NAV/share & share pri
Slide 8: Backed by blue-chip institutional capital
Backed by blue-chip institutional capital Long-term supportive institutional shareholder base Strong conviction in VEF’s investment appraisal Leading institutional managers maintain long-term holdings and have consistently supported Key shareholders have committed to co-investments in follow-on roun
Slide 9: Established reputation and deep relationships within local ecosystems provides a competitive moat
Established reputation and deep relationships within local ecosystems provides a competitive moat and access to unique opportunities 1 Brazil • Deep sector expertise and a global lens to emerging market fintech Unique global • Differentiated insights from our global portfolio, continuous pipeline di
Slide 10: Management team
Seasoned management with extensive EM fintech expertise, supported by a high calibre, experienced team >6% collective holding in VEF1 Investment team Operations team Management team David Nangle Alexis Koumoudos Helena Caan Mattsson 2015 2016 2017 CEO CIO GC/Head of Sustainability • Experience: 20+
Slide 11: Agenda
Agenda A Introduction to VEF B 1Q25 Results Overview C Exits and Capital Update D Key Portfolio Companies E Sustainability 11
Slide 12: NAV of USD 357 mln in 1Q25
12 - 400 600 800 200 USD mln Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 NAV of USD 357 mln in 1Q25 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 1Q20 Covid impact Sep-20 NAV Evolution Capital raises: Dec-20 3Q21: USD 97 mln 4Q20: USD 58 mln Mar-21 Jun-21 S
Slide 13: Valuation approach and key take-aways
Valuation approach and key take-aways 1Q fair value Change QoQ Valuation Portfolio valuation shifting back to marks validated by Company Multiple Comments / Last transaction details (USD mln) (USD mln) methodology recent and sizeable latest transactions 151.5 +9.0 MTM Rev + GP - Public or latest tra
Slide 14: High quality portfolio, delivering robust profitable growth
High quality portfolio, delivering robust profitable growth Confident with the quality of the companies that dominate our portfolio and their delivery/outlook as we move through 2025 Quality Many moving parts which define our success over time, but quality performing compounding assets form the basi
Slide 15: 1Q25 NAV Evolution
1Q25 NAV Evolution Modest NAV growth driven by robust portfolio company performance and Fx recovery, largely offset by market multiples contraction during the quarter 1Q25 NAV Bridge Key takeaways USD mln • Total USD NAV ended the quarter at USD 357.0 mln, up Public holdings or Corporate Holdings va
Slide 16: VEF investment case and outlook
VEF investment case and outlook It’s all about the portfolio Profitable – portfolio has a much more balanced risk/reward than in the past, with over 90% already reaching break-even1. The remainder are on a clear path to that destination with current capital or have comfortable runway. Growing – with
Slide 17: Agenda
Agenda A Introduction to VEF B 1Q25 Results Overview C Exits and Capital Update D Key Portfolio Companies E Sustainability 17
Slide 18: 3 exits delivered – USD 32 mln proceeds to VEF
3 exits delivered ̶ USD 32 mln proceeds to VEF Demonstrating ability to realise investments at/around our NAV marks, and strengthening the balance sheet with fresh capital 1 2 3 November 2024 January 2025 April 2025 • Successful IPO on National Stock Exchange of • Acquisition by Sem Parar, the leadi
Slide 19: USD 14.8 mln proceeds to VEF through partial exit in Juspay as part of Series D
USD 14.8 mln proceeds to VEF through partial exit in Juspay as part of Series D VEF investment & transaction overview Key Juspay stats VEF investment history Dominant player in the Indian payments ecosystem… Mar 2020 $13.0 mln $21 mln Series B funding round led $450 bln+ ~5x 130%+ VEF investment by
Slide 20: Exits – key lever in closing the discount to NAV
Exits ̶ key lever in closing the discount to NAV NAV growth and portfolio exits/partial exits will be the key catalysts in closing the discount to NAV 1 Validates our NAV marks Reflects the true valuation at which we can Enables Validates our crystallize our investments share buybacks 3 1 NAV marks
Slide 21: Validating our NAV marks
1 Validating our NAV marks Realising cash exits at net premium to NAV NAV pre-trnx1 NAV at exit2 Company (USD mln) (USD mln) % Comments Realising cash exits at net premium to NAV USD mln 78.8 84.4 +7% 7% premium to our pre-transaction NAV mark +5.5 106.2 102.7 Returning investment amount in the face
Slide 22: Validating our NAV marks (cont’d)
1 Validating our NAV marks (cont’d) Over 50% of NAV now validated with very recent and significant transactions NAV underpinned and validated by real valuation marks % of holdings1 1Q23 4Q24 pro forma Other2 2% Recent size fundraises Cash realisations 23% 28% 9% 52% Very recent and Latest transactio
Slide 23: Strengthening cash & balance sheet
2 Strengthening cash & balance sheet Restoring a net liquidity position with sufficient headroom for (partial) redemption of bond and opportunistic share buybacks Pro forma liquidity position Pro forma balance sheet USD mln $44.7 mln $39.9 mln Pro forma liquidity 1Q25 bonds outstanding $45 mln +13.6
Slide 24: Capital allocation
3 Capital allocation • USD 44.7 mln pro forma liquidity position • Sufficient capital to facilitate (partial) bond paydown: open market buy backs and/or early voluntary redemption • Share buy back announced: mandate for up to 5% of outstanding shares • Restored net-liquidity position1 Share buybacks
Slide 25: Agenda
Agenda A Introduction to VEF B 1Q25 Results Overview C Exits and Capital Update D Key Portfolio Companies E Sustainability 25
Slide 26: VEF portfolio overview
VEF portfolio overview Company Description Stake1 % of Portfolio1 Company Description Stake1 % of Portfolio1 Solfácil is building a digital ecosystem for solar energy 2.5% 3.6% Brazil’s leading digital-first secured 9.0% 40.5% adoption in Brazil lending platform Leading accounting SaaS provider 21.3
Slide 27: VEF key portfolio companies
VEF key portfolio companies Provides digital banking products including Brazil’s leading digital-first secured lending Leading mobile payments platform for online Overview platform merchants in India credit, payments and software tools for Mexican SMEs - Payments orchestration platform - Auto equity
Slide 28: Creditas – Brazil’s leading digital-first secured lending platform
Creditas – Brazil’s leading digital-first secured lending platform Market opportunity Creditas value proposition Key stats1 Extraordinary interest rates… Addressing credit affordability through Average APR on lending products in Brazil (4Q24) collateralized lending $8.8 bln+ 40+ 446% Loaned to custo
Slide 29: Creditas – re-accelerating growth with positive cashflows
Creditas – re-accelerating growth with positive cashflows 4Q24 update Summary overview Portfolio Under Management Revenues Re-accelerating growth with self-sustaining profitability BRL bln BRL mln • Continues to accelerate originations: In 4Q24, originations 517 531 amounted to BRL 802 mln, up 45% v
Slide 30: Konfío – Mexico’s leading digital financial services provider for SMEs
Konfío – Mexico’s leading digital financial services provider for SMEs Working Capital Uncollateralized loans for working capital and Installment Loans productive investments #1 75k+ ~$500 mln Most issued business card Mexican SMEs benefitted in Mexico (2021-22) Loan portfolio (Mar-25) Corporate Rev
Slide 31: Juspay – one of India’s fastest growing payments tech companies
Juspay – one of India’s fastest growing payments tech companies Access to the entire Indian payment ecosystem with one single integration Key Juspay stats Dominant player in the Indian payments ecosystem… Merchant payments platform ▪ Powering entire payment stacks for enterprises $450 bln+ ~5x 130%+
Slide 32: Agenda
Agenda A Introduction to VEF B 1Q25 Results Overview C Exits and Capital Update D Key Portfolio Companies E Sustainability 32
Slide 33: VEF sustainable investing
VEF sustainable investing Sustainability as a fundamental part of VEF’s business model Our capital plays an important role in furthering financial inclusion Successfully refinanced sustainability bond in November 2023 VEF supports the UN Sustainable Development Goals VEF proprietary sustainability f
Slide 34: Appendix
Appendix
Slide 35: NAV/share & share price development
35 0 1 2 3 4 5 6 7 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 1Market data as at 14 April 2025 Sep-17 Dec-17 Mar-18 Jun-18 NAV (1Q25) Sep-18 $357M Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 NAV/Share (SEK) Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Share Price (SEK) D
Slide 36: Valuation approach
Valuation approach T0 T + 12 months Latest significant equity transaction T0 – T+12 months T+12 months onwards… Mark-to-Model (MTM) • Significant equity transaction within the last 12 months serves as the primary anchor for our fair value analysis. • Post 12 months fair value determined based on a m
Slide 37: Thank you
Disclaimer The information in this Presentation (the “Presentation”) is furnished by VEF AB (publ), reg. no. 559288-0362 (the “Company” or “VEF”). This Presentation does neither constitute an offer to sell nor a solicitation of an offer to buy any securities, and it does not constitute any form of c