Slide 1: Results Presentation 3Q23
Results Presentation 3Q23 The emerging market fintech investor
Slide 2: Key events of the quarter
Key events of the quarter 3Q23 NAV – Off QoQ / up YTD, in line with public market drivers NAV ended the quarter at USD 423 mln, off 11.8% QoQ but up 10.7% YTD. 3Q23 saw a pullback in public equites and listed fintech within that, while moderate currency headwinds (BRL/MXN) were also a factor. Brazil
Slide 3: 3Q23 financial highlights
3Q23 financial highlights NAV Financial result • NAV of VEF’s portfolio decreased in 3Q23 to USD 422.7 mln. NAV per share has • Net result for 3Q23 was USD -56.5 mln (3Q22: USD 4.8 mln). decreased by 12% to USD 0.41 per share during 3Q23. Earnings per share were USD -0.05 (3Q22: USD 0.01). • In SEK,
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 423 mln in 3Q23 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 NAV Evolution Mar-20 Jun-20 1Q20 Covid impact Sep-20 Capital raises: Dec-20 3Q21: USD 97 mln 4Q20: USD 58 mln Mar-21 Jun-21 1Q
Slide 5: Weaker backdrop across 3Q23, but markets retain buoyant YTD performance
Weaker backdrop across 3Q23, but markets retain buoyant YTD performance Persistent inflation, hawkish rate policies and continued macro uncertainty weighed on markets with key indexes all closing the quarter in negative territory. All performance figures in USD. Global Fintech Indexes Market Indexes
Slide 6: Evolution of our valuation marks in 3Q23
Evolution of our valuation marks in 3Q23 QoQ % YoY % 3Q23 % of Fair value USD (mln) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 change change holdings Creditas 169.0 394.1 394.1 195.9 211.3 193.1 198.7 212.9 183.5 -14% -13% 42.3% Konfiío 135.6 135.6 135.6 61.1 61.1 40.1 48.9 85.6 79.8 -7% 31% 18.4%
Slide 7: Valuation approach and key take-aways
Valuation approach and key take-aways 3Q fair value Change QoQ Valuation Company Comments / Last transaction details Portfolio valuation (USD mln) (USD mln) methodology 183.5 -29.3 MTM - • Total 3Q23 NAV is USD 422.7 mln, down USD 56.4 mln QoQ 79.8 -5.7 MTM - • The main drivers of NAV evolution in t
Slide 8: Key NAV and portfolio performance metrics 3Q23
Key NAV and portfolio performance metrics 3Q23 NAV and portfolio fair value conservatively reflects the current environment through a robust valuation framework NAV significantly reset in 2022 to reflect the environment, now Majority of the holdings valued based on mark-to-model, with the 1 resuming
Slide 9: 3Q23 NAV Evolution
3Q23 NAV Evolution Evolution in NAV primarily driven by market sell-off and Fx headwinds across 3Q23, partially offset by continued robust portfolio performance 3Q23 NAV Bridge Key takeaways USD mln • Total USD NAV ended the quarter at USD 422.7 mln, Holdings valued on MTM & calibration Holdings val
Slide 10: Creditas has moderated growth while accelerating its path to profitability
Creditas has moderated growth while accelerating its path to profitability 2Q23 update Summary overview Portfolio Under Management & New Originations New environment in 2022/23 BRL mln • Elevated inflation and rates with macro deterioration Clear impact on operational margins, driven by: 1. Increase
Slide 11: Delivered healthy 2Q23 numbers with continuously improving margins
Delivered healthy 2Q23 numbers with continuously improving margins Financial results Path to profitability & future outlook Creditas P&L (IFRS) With peak inflation and interest rates likely behind us, Creditas’ path to profitability will be driven by: BRL mln FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Slide 12: Gringo announces Series C funding round
Gringo announces Series C funding round One of the few late-stage funding rounds taking place in the region ̶ a testament to the strength of Gringo’s team and delivery Series C ̶ Aug 2023 Exceptional delivery against a tough market backdrop Gringo has rapidly become the leading platform for drivers
Slide 13: Steady, positive momentum across core fundamentals of the VC industry
Steady, positive momentum across core fundamentals of the VC industry Ecosystem has turned a corner, gradually gearing up for the next phase of growth VC deployment across VEF core markets1 • Early stage remains buoyant but with more disciplined, concentrated deployment and USD mln better collaborat
Slide 14: NAV/share & share price development
14 0 1 2 3 4 5 7 6 dec-15 mar-16 jun-16 sep-16 dec-16 mar-17 jun-17 sep-17 1Market data as at 24 October 2023 dec-17 mar-18 NAV (3Q23) $423M jun-18 sep-18 dec-18 mar-19 jun-19 sep-19 NAV/Share (SEK) dec-19 mar-20 jun-20 sep-20 dec-20 mar-21 jun-21 NAV/share & share price development Share Price (SEK
Slide 15: Closing the discount to NAV
Closing the discount to NAV The discount to NAV averaged 53% through 3Q23. We have several ongoing initiatives aimed at addressing the discount: VEF initiative Details Anticipated effects • On the front foot marketing our story globally • Our key portfolio companies have been busy speaking to invest
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 500 mln outstanding VEF • Frame of SEK 1,000 mln Sustainability 35.4 Bond • Interest: Stibor 3m + 725 bps paid quarterly - 7 • Maturity: April 2025 - 9 2 21.4
Slide 17: VEF investment case and outlook
VEF investment case and outlook 2023 – YTD positive. Optimistic about portfolio value accretion potential: 1. Creditas and Konfío – refocused and well capitalised, both well placed into macro/markets recovery. 2. Juspay – classic structural growth play on Indian payments – a key engine of medium-ter
Slide 18: Appendix
Appendix
Slide 19: 3Q23 income statement
3Q23 income statement 19 Result from financial assets at fair value through profit or loss Coupon income Other income Administrative and operating expenses Operating result Financial income and expenses Interest income Interest expense Currency exchange gains/losses, net Net financial items Result b
Slide 20: 3Q23 balance sheet
3Q23 balance sheet 20 NON-CURRENT ASSETS. Tangible non-current assets Sop 30,2023 Property, plant and equioment 18 166 Total tangible non-current assets 45 185 Financial non-current assets Financial assets at fair value through profit or loss Equity fancial assets gan 380,800 Liquid francial assets
Slide 21: VEF portfolio summary
VEF portfolio summary Invested amount 3Q23 fair value Company Country Segment Investment date Ownership % (USD mln) (USD mln) Creditas Brazil Asset focused ecosystem Dec-17 8.7% 108.4 183.5 Konfio Mexico Diversified FS for Mexican SMEs Jun-18 10.3% 56.5 79.8 Juspay India Mobile payments platform Apr
Slide 22: Portfolio distribution by geography
Portfolio distribution by geography Liquidity Liquidity placements placements 6% Pakistan 6% Emerging 1% Europe & Africa Emerging Europe 7% 7% Mexico South Asia 17% 19% Brazil 51% Latin America India 68% 18% 22
Slide 23: Thank you
Thank you The emerging market fintech investor