Vef Ab · OMXSTO:VEFAB
Vef Ab — Vostok Emerging Finance — Q3 2018 Earnings Presentation
34 slides from Vef Ab's earnings presentation, October 2018
Slide 1: 3Q18 Results Presentation
>EF Vostok Emerging Finance 3Q18 Results Presentation
Slide 2: 3Q/9M 2018 Portfolio Highlights
3Q/9M 2018 Portfolio Highlights Key Events during the Third Quarter and YTD • Jumo closed a $52mn funding round, led by Goldman Sachs, one of the largest private funding rounds ever in Africa and sets the company up for continued strong growth. VEF took up its rights in this round. • Throughout the
Slide 3: 3Q18 Financial Highlights
3Q18 Financial Highlights Financial Result: • Net result for the nine-months period was USD 7.34 mln (9M17: 42.16 mln). Earnings per share were USD 0.01 (9M17: 0.06). • The positive net result over the nine-months period is primarily driven by the mark up in valuation of iyzico, TransferGo and Finan
Slide 4: 3Q18 Financial Highlights: Net Asset Value
3Q18 Financial Highlights Net Asset Value: • The net asset value (NAV) of VEF was USD 204.90 mln as at September 30, 2018 (December 31, 2017: USD 198.56 mln), which is an increase by 3.2% in USD over the nine-months period 2018. • Net asset value per share was USD 0.32 (December 31, 2017: USD 0.30).
Slide 5: 3Q18: Income Statement
3Q18: Income Statement Jan 1, 2018- Jan 1, 201: Jul 1, 2018- Sep 30, 2018 Sep 30, 2017 Result from financial assets at fair value through profit or loss* 41,470 -12,789 26,897 Dividend and coupon income 2,579 587 1,184 Total operating income 44,049 -12,202 28,081 Operating expenses -2,586 -1,351 -82
Slide 6: 3Q18: Balance Sheet
3Q18: Balance Sheet Expressed in USD thousands Sep30,2018 Dec31,2017 NNON-CURRENT ASSETS ‘Tangible non-current assets Property, plant and equipment 89 Total tangible non-current assets 89 Financial non-current assets Financial assets at fair value through profit or loss 199,227 Other financial asset
Slide 7: VEF Portfolio
VEF Portfolio 7 *Value of related invested amount
Slide 8: Portfolio Commentary
Portfolio Commentary • At the end of Q3, we had 12 holdings in the portfolio, plus cash and liquid assets. • TCS remains our largest holding despite reduction of our position. • Still diversified and balanced portfolio mix but we expect dominant names to start to show through in 2019. • Strong cash
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 NAV/Share Share Pr ice 3.10 2.90 2.70 2.50 2.30 2.10 SEK 1.90 1.70 1.50 1.30 Rights 1.10 issue 0.90 16 17 18 16 16 17 17 18 18 6 6 7 7 8 16 17 18 6 7 8 6 6 7 7 8 8 6 7 8 15 16 16 17 17 18 -1 -1 -1 -1 -1 -1 r-1 t-1 r-1 t-1 r-1 t-1 v-1 v-1 l-1 l-1 l-1 n- n- n- n
Slide 11: VEF Shareholder Structure, Largest Shareholders
VEF Shareholder Structure, Largest Shareholders *Holding as per the latest notification to the Company. Based on Euroclear Sweden AB data and holdings known to the company. Including foreign nominees. 11
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 CREDIT OTHER FINTECH PAYMENTS 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 16 *Value of related invested amount
Slide 17: Tinkoff Bank
Tinkoff Bank • Business Type: Digital Banking Key • Founded: 2006 Year of investment: 2007 Facts • Ownership Stake: 1.4% • Key region: Russia • 2Q’18 Net Income up to ₽6.0bn for a 43% growth y-o-y • Growing income with stable equity boosts 1H’18 ROE to 69.3% All currency data are in RUB bn unless ot
Slide 18: Tinkoff Bank 2Q18 Results
Tinkoff Bank 2Q18 Results Current Accounts SME Mortgages Investments 18 All currency data are in RUB bn unless otherwise stated
Slide 19: Tinkoff Bank: Our First Exit
Tinkoff Bank Share of VEF Portfolio 2017YE Q3 Tinkoff – Our First Exit Cost of exited position USD 12.3 mn Total proceeds from exited position USD 69.1 mn Date entered position 09/06/2015 Date exited last shares 26/10/2018 Years in position 3.38 IRR 70% CoC return 6x 19
Slide 20: 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 21: 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 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 23k live merchants and 380k 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: JUMO
JUMO • Type: Mobile Money Marketplace Key • Founded: 2013 Year of investment: 2015 Facts • Ownership Stake: 7.2% • 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 25: 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 26: REVO Metrics
Metrics Sept 2015 Sept 2016 Sept 2017 Sept 2018 No. of active stores 1,317 1,921 3,152 4,194 No. of installments granted 23,854 58,288 38,768 50,469 Avg. installment plan (Rub) 3,853 4,435 5,610 7,903 Avg. duration of installment plan 4.4 4.8 4.6 6.1 (months) Connected stores, # Monthly installment
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 Sept 2016 Sept 2017 Sept 2018 No. of active users* 40,461 69,094 112,586 Money flow (GBP mn) 14.4 29.8 43.0 Avg. ticket size (GBP) 328 398 340 Active Users*, # Monthly Money Flow, GBP mn 135000 35 115000 30 95000 25 75000 20 55000 15 35000 10 15000 5 Mar '17 Sep '15 Mar '16 Sep '1
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 23k 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 and beyond
Opportunities and Outlook for 2018 and beyond 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. Iyzico growing into a standout portfolio name with NAV uplift Of note … reflecting its p
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