Vef Ab · OMXSTO:VEFAB
Vef Ab — Vostok Emerging Finance — Q3 2019 Earnings Presentation
31 slides from Vef Ab's earnings presentation, November 2019
Slide 1: 3Q19 Results Presentation
3Q19 Results Presentation
Slide 2: 2019 Highlights
2019 Highlights 2 Portfolio Exits in 2019: Tinkoff & iyzico • Tinkoff Bank: 6.1x CoC return / 65% IRR • iyzico: 3.1x CoC return / 56% IRR (subject to regulatory approvals) Creditas: Landmark investment round • Our largest portfolio company, Creditas, recently raised a USD 231 mln Series D funding ro
Slide 3: 3Q19 Financial Highlights
3Q19 Financial Highlights Net asset value • NAV of VEF’s portfolio increased by 4.3% during the quarter to USD 248.9 mln. • In local currency, NAV increased by 10.4% to SEK 2,441 mln and SEK 3.78 per share. • Cash position at the end of Q3 was USD 11.7 mln. Financial result • Net result for 3Q19 was
Slide 4: 3Q19 Income Statement
3019 Income Statement Jul 1, 2019- Jul 1, 2018- Sep 30,2019 Sep 30,2019 Result from financial assets at fair value through profit or loss 51,471 Expressed in USD thousands Dividend and coupon income Total operating profit Operating expenses General administrative expenses Employee incentive programs
Slide 5: 3Q19 Balance Sheet
3Q19 Balance Sheet Sep30,2019 Dec31, ‘Tangible non-current assets Property, plant and equipment Total tangible non-current assets Financial non-current assets Financial assets at fair value through profit or loss Other financial assets Total financial non-current assets CURRENT ASSETS Cash and cash
Slide 6: VEF Business Overview and Update
VEF Business Overview and Update
Slide 7: VEF – Emerging Markets Fintech Investors
VEF – Emerging Markets Fintech Investors 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, mobile money and financial Sector ma
Slide 8: Portfolio Commentary
Portfolio Commentary • Today we have 12 holdings in the portfolio, diversified by geography, business type and stage of development, with Xerpa the latest addition. • Exits – Completed/announced exits of Tinkoff & iyzico in 1H19, yielding ~60% IRRs. • Creditas and Konfio are starting to emerge as th
Slide 9: Portfolio NAV Distribution by Geography (ex cash)
Portfolio NAV Distribution by Geography (ex cash) 9
Slide 10: VEF Portfolio
VEF Portfolio Invested Amount Sep'19 Fair Value Investment Company Geography Business Type % Ownership (USD mln) (USD mln) Date Creditas Brazil Secured Lending Platform 9.7% 48.5 73.2 Dec-17 Konfio Mexico SME Lending 11.4% 27.5 41.6 Jun-18 Iyzico Turkey Payment Processing 21.1% 11.0 33.9 Jan-17 REVO
Slide 11: Brazil – Our Favoured Fintech Ecosystem
Brazil – Our Favoured Fintech Ecosystem 1. Scale – With a population of over 200 mln people, Brazil is one of the world’s largest economies, and the kind of scalable emerging market we like to invest in. 2. Online – Brazil is one of the most ‘online’ markets in the world with high smartphone and int
Slide 12: VEF Shares and Corporate Governance
VEF Shares and Corporate Governance
Slide 13: Share Price, NAV/Share and the Discount
Share Price, NAV/Share and the Discount Share Price, NAV/share Discount to NAV Date Latest Share Price NAV/Share* Discount NAV* Market Cap (SEK) (SEK) (USD mln) (USD mln) Nov 8th, 2019 2.86 3.78 24.3% 248.9 193.0 * As at Sept 30, 2019 13
Slide 14: Our IR and Marketing Focus to Date
Our IR and Marketing Focus to Date Investor marketing and conversion has been excellent, the story resonates and we have a growing following in the market. We continually have new smaller shareholders in the base while a number of size investors are looking for blocks. Equity Research Formal Coverag
Slide 15: VEF Shareholder Structure
VEF Shareholder Structure Owner Holding, SDRs Holding, % Libra Fund* 179,336,674 27.1% Ruane Cunniff & Goldfarb* 135,127,741 20.4% Fidelity FIL 66,149,599 10.0% Swedbank Robur Funds 57,674,245 8.7% Wellington Management* 33,736,296 5.1% Gadd & Cie S.A 16,910,000 2.6% Svenska Handelsbanken AB 15,288,
Slide 16: Governance Structure
Governance Structure Ranjan Tandon Per Brillioth Lars O Grönstedt Milena Ivanova Voria Fattahi Board Member Board Member Chairman of the Board Board Member Board Member Experience: Experience: Experience: Experience: Experience: • Founder and Chairman, • MD of Vostok New • Chairman and MD of • Renai
Slide 17: Our Portfolio Companies
>EF Vostok Emerging Finance Our Portfolio Companies
Slide 18: VEF Portfolio
VEF Portfolio Invested Amount Sep'19 Fair Value Investment Company Geography Business Type % Ownership (USD mln) (USD mln) Date Creditas Brazil Secured Lending Platform 9.7% 48.5 73.2 Dec-17 Konfio Mexico SME Lending 11.4% 27.5 41.6 Jun-18 Iyzico Turkey Payment Processing 21.1% 11.0 33.9 Jan-17 REVO
Slide 19: Creditas
Creditas • Type: Secured consumer lending Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 9.7% • 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 massi
Slide 20: Konfío
Konfío • Type: Digital SME Lending Key • Founded: 2014 Year of investment: 2018 Facts • Ownership Stake: 11.4% • Key region: Mexico Konfio is a 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
Slide 21: REVO
REVO • Type: Merchant payments / consumer credit Key • Founded: 2013 Year of investment: 2015 Facts • Ownership Stake: 25% • Key region: Russia Revo provides financing options for leading merchants in Key Merchant Partners 1 Russia, allowing millions of shoppers to buy now and pay later. Works with
Slide 22: JUMO Mobile Money Marketplace
JUMO • Type: Mobile Money Marketplace Key • Founded: 2014 Year of investment: 2015 Facts • Ownership Stake: 6.8% • Key region: South Africa Jumo is the largest and fastest-growing technology 1 platform operating inclusive mobile financial services Financial Service Providers marketplaces in emerging
Slide 23: TransferGo
TransferGo • Type: Cross Border Remittances Key • Founded: 2012 Year of investment: 2016 Facts • Ownership Stake: 15.4% • Key region: EU TransferGo is a rapidly-growing, low-cost, digital cross- 1 border remittance provider focusing on Western to Eastern Europe. Targeting blue-collar workers, some o
Slide 24: Guiabolso
Guiabolso • Type: Personal finance management Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 10.9% • Key region: Brazil Guiabolso is a personal finance manager with the 1 mission of transforming the financial well being of Brazilian consumers. The Credit Karma of Brazil. Lever
Slide 25: Xerpa
Xerpa • Type: HR & Payroll Platform Key • Founded: 2016 Year of investment: 2019 Facts • Ownership Stake: 16.0% • Key region: Brazil Xerpa provides modern, integrated HR software to 1 corporates in Brazil, including products for recruitment, onboarding and performance evaluation. Xerpa’s salary-on-d
Slide 26: Nibo
Nibo • Type: Accounting SaaS Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 20.1% • Key region: Brazil Nibo SaaS dashboard Nibo is the leading Brazilian accounting SaaS provider for 1 SMBs and accountants. SMBs Accountants 3 Nibo for Accounting Has over 146K paying SMBs servic
Slide 27: Magnetis
Magnetis • Type: Digital investment advisor Key • Founded: 2015 Year of investment: 2017 Facts • Ownership Stake: 16.9% • Key region: Brazil Magnetis is the leading Brazilian digital investment 1 advisor, offering automated investment portfolios tailored to clients requirements. Large addressable ma
Slide 28: FinanZero
FinanZero • Type: Consumer Loan Marketplace Key • Founded: 2016 Year of investment: 2016 Facts • Ownership Stake: 18.0% • Key region: Brazil Business model - online broker of consumer loans FinanZero is a pioneering digital marketplace for consumer 1 loans in Brazil. 1 2 Applications from Highest qu
Slide 29: Finja
Finja • Type: Mobile payments / loans marketplace Key • Founded: 2016 Year of investment: 2016 Facts • Ownership Stake: 20.4% • Key region: Pakistan Pakistan is a scale emerging market running behind India 1 in fintech evolution, but is catching up. Finja is a leading mobile wallet play in Pakistan,
Slide 30: Outlook and Guidance 2019
>EF Vostok Emerging Finance Outlook and Guidance 2019
Slide 31: Outlook for 2019 and beyond
Outlook for 2019 and beyond Exciting diversified VEF has assembled an exciting and diversified fintech portfolio, with sizable holdings in some of the best portfolio fintech assets across the emerging world. 2019 saw our first 2 portfolio exits: Tinkoff (Russia) and iyzico (Turkey), both generating
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