Slide 1: Results Presentation 1Q24
Results Presentation 1Q24 The emerging market fintech investor
Slide 2: Key events of the quarter
Key events of the quarter 1Q24 NAV: Strong trends below QoQ print NAV ended the quarter at USD 447.6 mln, up 1% QoQ, 9% YoY. NAV is now +17% from its 4Q22 lows. QoQ NAV performance disguised strong prints from Creditas (+14% QoQ – performance/multiples) and TransferGo (+36% QoQ – funding up-round).
Slide 3: 1Q24 financial highlights
1Q24 financial highlights NAV Financial result • NAV of VEF’s portfolio as at 1Q24 increased to USD 447.6 mln. NAV per share • Net result for 1Q24 was USD 5.3 mln (1Q23: USD 28.4 mln). has increased by 1% to USD 0.43 per share during the quarter. Earnings per share were USD 0.01 (1Q23: USD 0.03). •
Slide 4: NAV Evolution
4 0 200 400 800 600 USD mln Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 NAV of USD 448 mln in 1Q24 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 NAV Evolution Jun-20 1Q20 Covid impact sep-20 Capital raises: dec-20 3Q21: USD 97 mln 4Q20: USD 58 mln mar-21 1Q22 impa
Slide 5: Strong start to the year, with indices up c. 10% across the board YTD
Strong start to the year, with indices up c. 10% across the board YTD Continued resilience in economic data is supporting optimism for lower rates, with big-tech extending AI-fueled momentum. Markets closed a strong first quarter, with key indices we track all up c. 10% YTD. All performance figures
Slide 6: Evolution of our valuation marks in 1Q24
Evolution of our valuation marks in 1Q24 QoQ % 1Q24 % of Fair value USD (mln) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 YoY % change change holdings Creditas 394.1 195.9 211.3 193.1 198.7 212.9 183.5 188.8 215.5 14.1% 8.5% 46.2% Konfiío 135.6 61.1 61.1 40.1 48.9 85.6 79.8 95.3 75.5 -20.8% 54.4% 1
Slide 7: MTM valuation methodology evolution
MTM valuation methodology evolution VEFs larger portfolio companies are maturing Methodology adjustment Revenue Prioritize sustainable growth into large opportunities Incorporating multiples further down the income statement Maturing which we believe will be drivers of valuation Portfolio Gross Prof
Slide 8: Valuation approach and key take-aways
Valuation approach and key take-aways Company 1Q fair value Change QoQ Valuation Multiple Comments / Last transaction details Portfolio valuation (USD mln) (USD mln) methodology 215.5 +26.7 MTM Rev + GP - • Total USD NAV ended the quarter at USD 447.6 mln, up +1.2% / USD 5.4 mln QoQ • The main drive
Slide 9: Key NAV and portfolio performance metrics 1Q24
Key NAV and portfolio performance metrics 1Q24 Portfolio valuation shifting back to marks validated by recent and sizeable latest transactions, with majority of MTM holdings now incorporating multiples further down the P&L Latest transaction Mark-to-model 13% 13% reflects very recent and significant
Slide 10: 1Q24 NAV Evolution
1Q24 NAV Evolution Evolution in NAV primarily driven by a combination of portfolio performance and new transaction valuations, largely offset by the impact of transitioning to multiples further down the P&L for portfolio companies approaching profitability and reaching steady-state margins 1Q24 NAV
Slide 11: Creditas: moderated growth, accelerating a path to profitability
Creditas: moderated growth, accelerating a path to profitability in 2023 4Q23 update – operational breakeven in Dec-23 Summary overview Portfolio Under Management Revenues Strong delivery - achieving operational breakeven in Dec-23 BRL bln BRL mln • Robust top-line growth: 4Q23 revenues reached BRL
Slide 12: Well Positioned for profitable growth in 2024
Well Positioned for profitable growth in 2024 Financial results Path to profitability & future outlook Creditas P&L (IFRS) With peak inflation and interest rates behind us, Creditas has delivered operational breakeven in Dec-23 BRL mln FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 4Q23 wit
Slide 13: TransferGo announces USD 10 mln funding round
TransferGo announces USD 10 mln funding round Following Gringo’s recent Series C, 2 out of our top 5 holdings have now closed recent up-rounds, with our portfolio valuation starting to shift back to marks validated by recent and sizeable latest transactions USD 10 mln funding ̶ March 2023 Recent seq
Slide 14: Share price, NAV/share and the premium/discount
Share price, NAV/share and the premium/discount NAV/share & share price development Premium/(Discount) to NAV 7 60% 6 40% 5 20% 0% 4 -20% 3 -40% 2 -60% 1 -80% jun-21 jun-16 jun-17 jun-18 jun-19 jun-20 jun-22 jun-23 sep-18 sep-21 sep-16 sep-17 sep-19 sep-20 sep-22 sep-23 mar-16 mar-17 mar-18 mar-19 m
Slide 15: Closing the discount to NAV
Closing the discount to NAV The discount to NAV averaged 58% through 1Q24. We have several ongoing initiatives aimed at addressing the discount: VEF initiative Details Anticipated effects • Marketing via digital channels: To a global audience via various media channels • Large portfolio companies ou
Slide 16: Capital position – comfort with controllables
Capital position – comfort with controllables Solid cash position to cover coupon payments and opex Expected cashflows to YE24 USD mln • SEK 400 mln outstanding Delta vs forecast in 4Q23 largely VEF attributable to USD 0.7 mln Fx • Frame of SEK 1,000 mln sustainability 17.9 translation impact bond •
Slide 17: VEF investment case and outlook
VEF investment case and outlook NAV tailwinds in place 2023 16% growth in NAV (USD 60.4 mln) benefitting from strong macro and market level performance. At a portfolio level, growth remains robust. forecasts have bottomed out – in many cases we are starting to revise up estimates again. Optimistic a
Slide 18: Appendix
Appendix
Slide 19: 1Q24 income statement
1Q24 income statement 19 Result from financial assets at fair value through profit or loss Administrative and operating expenses 1,678 -2420 Operating result 4,828 29,868 Financial income and expenses Interest income 157 5 Interest expense 1108 1,284 Currency exchange gains/losses, net 1,429 7146 Ne
Slide 20: 1Q24 balance sheet
1Q24 balance sheet 20 NON-CURRENT ASSETS Tangiblenon-current assets Property, plant and equipment 92 100 Total tangible non-current assets 92 100 Financial non-current assets Financial assets at fair value through proft or loss Equity financial assets 466,462 460,020 Liquid financial assets 3,947 3,
Slide 21: VEF portfolio summary
VEF portfolio summary Invested amount 1Q24 fair value Company Country Segment Investment date Ownership % (USD mln) (USD mln) Creditas Brazil Asset focused ecosystem Dec-17 8.8% 108.4 215.5 Konfio Mexico Diversified FS for Mexican SMEs Jun-18 10.3% 56.5 75.5 Juspay India Mobile payments platform Apr
Slide 22: Portfolio distribution by geography
Portfolio distribution by geography Liquidity placements Liquidity 1% Emerging placements Pakistan Europe 1% 1% Emerging Europe 8% 8% Mexico South Asia 16% 19% Brazil 56% India Latin 18% America 72% 22
Slide 23: 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