Vef Ab · OMXSTO:VEFAB
Vef Ab — Vostok Emerging Finance — Q1 2019 Earnings Presentation
32 slides from Vef Ab's earnings presentation, May 2019
Slide 1: 1Q19 Results Presentation
>EF Vostok Emerging Finance 1Q19 Results Presentation
Slide 2: 1Q19 Key Events
1Q19 Key Events Key Events during the First Quarter • First portfolio exit - VEF sold its remaining shares (508,258) in Tinkoff Bank, at a value of USD 8.7 mln, completing its first portfolio exit. More details slide 12. • Share buyback continued - VEF repurchased 630k of its own SDRs to fund the Co
Slide 3: 1Q19 Financial Highlights
1Q19 Financial Highlights Financial Result • Net result for 1Q19 was USD 1.56 mln (1Q18: USD 13.01 mln). Earnings per share were USD 0.002 (1Q18: USD 0.02). Net Asset Value • Net asset value (NAV) was USD 203.1 mln as at March 31, 2019 (December 31, 2018: USD 201.4 mln), an increase of 0.8% in USD o
Slide 4: 1Q19 Income Statement
>EF 1Q19 Income Statement in USD thousands Result from financial assets at fair value through profit or loss* Dividend and coupon income Total operating profit Operating expenses General administrative expenses Employee incentive programs Total operating expenses Operating result Financial income an
Slide 5: 1Q19 Balance Sheet
>EF 1Q19 Balance Sheet Expressed in USD thousands NON-CURRENT ASSETS Tangible non-current assets Property, plant and equipment Total tangible non-current assets Mar 31,2019 Dec31,2018 Financial non-current assets Financial assets at fair value through profit or loss Equity financial assets Liquid fi
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: Where Fintech Meets Emerging Markets
Where Fintech Meets Emerging Markets Credit Payments Other Fintech Consumer Offline Accounting SaaS SME Online Wealth Management P2P Mobile Digital Banks Credit Scoring Remittances Mobile Wallets Comparison Websites Personal Finance Managers Insurance 8
Slide 9: Portfolio Commentary
Portfolio Commentary • 11 holdings in the portfolio today, diversified by geography, business type and stage of development. • Early portfolio “winners” starting to make their mark within our NAV - Iyzico and Creditas. • Recently had our first exit with Tinkoff Bank in Russia, yielded 6.1x cash on c
Slide 10: VEF Portfolio
VEF Portfolio Invested Amount Mar'19 Fair Value Investment Company Geography Business Type % Ownership (USD mln) (USD mln) Date Turkey Payment Processing 21.1% 11.0 26.1 Jan-17 Brazil Secured Lending Platform 10.0% 25.0 25.0 Dec-17 Russia Payments & Consumer Credit 25.0% 8.8 18.0 Sep-15 Africa Mobil
Slide 11: Portfolio NAV Distribution by Geography (ex cash)
Portfolio NAV Distribution by Geography (ex cash) 11
Slide 12: Tinkoff Exit
Tinkoff Exit Return on Investment Exit Rationale Cost of position (USD mln) 19 Total proceeds (USD mln) 116.8 1. A publicly listed security Date entered position Jun-15 We are focused on investing in the private space, providing Date exited position Feb-19 access for shareholders to the fast-growth
Slide 13: VEF Shares and Corporate Governance
VEF Shares and Corporate Governance
Slide 14: 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) May 10, 2019 2.30 2.93 22% 203.1 157.7 *As at March 31, 2018 14
Slide 15: 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 16: VEF Shareholder Structure
VEF Shareholder Structure Owner Holding, SDRs Holding, % Libra Fund* 161,110,674 24.4% Ruane Cunniff & Goldfarb* 118,888,736 18.0% Fidelity FIL 66,149,599 10.0% Swedbank Robur Funds 57,674,245 8.7% Wellington Management* 33,736,296 5.1% Alecta Pension Insurance 33,500,000 5.1% Bank Julius Baer & Co
Slide 17: 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 18: Our Portfolio Companies
>EF Vostok Emerging Finance Our Portfolio Companies
Slide 19: VEF Portfolio
VEF Portfolio Invested Amount Mar'19 Fair Value Investment Company Geography Business Type % Ownership (USD mln) (USD mln) Date Turkey Payment Processing 21.1% 11.0 26.1 Jan-17 Brazil Secured Lending Platform 10.0% 25.0 25.0 Dec-17 Russia Payments & Consumer Credit 25.0% 8.8 18.0 Sep-15 Africa Mobil
Slide 20: Iyzico
Iyzico Ecommerce market size in Turkey • Type: Payment Processor Key • Founded: 2012 Year of investment: 2017 (TRY bln) Facts • Ownership Stake: 21.1% • Key region: Turkey Iyzico is the leading payment solutions provider for online 1 retailers in Turkey. Has over 31k live merchants and 470k seller a
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 USD
Slide 22: REVO
REVO • Type: Merchant payments / consumer credit Key • Founded: 2012 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 23: JUMO
JUMO • Type: Mobile Money Marketplace Key • Founded: 2013 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 24: Konfío
Konfío • 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 25: TransferGo
TransferGo • Type: Cross Border Remittances Key • Founded: 2012 Year of investment: 2016 Facts • Ownership Stake: 16.2% • Key region: EU TransferGo is a low-cost cross-border remittance provider 1 focusing on Western to Eastern Europe. Targeting blue-collar workers, some of the most consistent 2 and
Slide 26: 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 27: Nibo
Nibo • Type: Accounting SaaS Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 20.6% • 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 General Has over 100k paying SMB
Slide 28: Magnetis
Magnetis • Type: Digital investment advisor Key • Founded: 2012 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 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 FinanZero is a pioneering digital marketplace for consumer 1 loans in Brazil. 1 2 Applications from Highest qu
Slide 30: Finja
Finja • Type: Mobile payments / loans marketplace Key • Founded: 2012 Year of investment: 2017 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 31: Outlook and Guidance 2019
>EF Vostok Emerging Finance Outlook and Guidance 2019
Slide 32: Opportunities and Outlook for 2019
Opportunities and Outlook for 2019 Very strong diversified fintech portfolio with sizable holdings in some of the best fintech assets across Strong portfolio the emerging world. Tinkoff is a big win and exit for us. Iyzico growing into a standout portfolio name with NAV uplift Of note … reflecting i
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