Slide 1: Results Presentation 2Q22
Results Presentation 2Q22 The emerging market fintech investor
Slide 2: Key Events of the quarter
Key Events of the quarter 2Q22, a tough quarter for financial markets Inflation and interest rates continued to rise and stock markets accelerated their sell off. Listed fintech stocks, being at the higher end of the growth/risk spectrum, felt the full brunt of this market repricing. VEF is not immu
Slide 3: 1H22 financial highlights
1H22 financial highlights NAV Financial result • NAV of VEF’s portfolio decreased during 1H22 to USD 441.2 mln. NAV per • Net result for 2Q22 was USD -296.6 mln (2Q21: USD 0.5 mln). share decreased by 42% to USD 0.42 per share during 1H22. Earnings per share were USD -0.28 (2Q21: USD 0.00). • In SEK
Slide 4: NAV Evolution (USD mln)
4 0 200 400 600 800 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 NAV USD 441 mln in 2Q22 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 NAV Evolution (USD mln) Sep-19 Dec-19 Mar-20 1Q20 Covid impact Jun-20 Sep-20 3Q21: $97m 4Q20: $58m Capital raises: Dec-20 Mar-21 Jun-21 1Q22 impact Rus
Slide 5: A rough quarter for markets and public fintech stocks (1/2)
A rough quarter for markets and public fintech stocks (1/2) Global Fintech Indices Market Indices 70 18 000 60 16 000 14 000 50 12 000 40 10 000 30 8 000 6 000 20 4 000 10 2 000 - - mar-20 jul-20 jul-21 mar-21 mar-22 apr-20 apr-21 apr-22 feb-20 feb-21 jan-20 maj-20 jun-20 aug-20 aug-21 feb-22 sep-20
Slide 6: A rough quarter for markets and public fintech stocks (2/2)
A rough quarter for markets and public fintech stocks (2/2) Fintech valuations have contracted sharply across global benchmark names Developed Markets LATAM Fintech Rolling EV / NTM revenue multiple Rolling EV / NTM revenue multiple PayPal Affirm Block Upstart NuBank PagSeguro Stone XP 40,0x 35,0x 3
Slide 7: Evolution of our valuation marks in 2Q22
Evolution of our valuation marks in 2Q22 2Q22 % of invested Fair value USD (thousands) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ % change YoY % change portfolio Creditas 80,713 102,078 169,023 169,023 169,023 169,023 394,123 394,069 195,936 -50% 16% 46.0% Konfío 28,081 40,279 48,504 60,982 75
Slide 8: Valuation approach and key take-aways (1/2)
Valuation approach and key take-aways (1/2) 8 of our holdings are valued on a model basis (inc. calibration) / 8 on last transaction. In 2Q22, we resurrect the calibration valuation methodology for a number of our portfolio companies. “The calibration methodology helps us adjust valuations of compan
Slide 9: Valuation approach and key take-aways (2/2)
Valuation approach and key take-aways (2/2) Key comments and caveats for our many stakeholders and partners: • We are not a price setter or market-maker for our portfolio companies. • Our companies consistently raise fresh capital and exit at valuations different to our marks (generally above, ie iy
Slide 10: Top holdings – 71% of invested portfolio in a very strong place
Top 3 holdings – 71% of invested portfolio in a very strong place VEF portfolio 30-Jun-2022 Creditas, Konfío and Juspay Top 3 portfolio holdings define our near-term success as an investment company USD 426 mln We have a high degree of confidence in the positioning, growth and future path for all 29
Slide 11: Creditas announces expansion of Series-F funding round and closes M&A transactions
Creditas announces expansion of Series-F funding round and closes M&A transactions Summary Points of Note: USD 50 mln extension to its USD 260 mln Series-F financing round Andbank, global private bank joins the cap table. Creditas is acquiring the banking license of Andbank (Brasil) as part of the t
Slide 12: Creditas, strong M&A track record and value creation history
Creditas, strong M&A track record and value creation history 4Q20 1H21 3Q21 4Q21 2Q22 Creditas acquires Creditas acquires Creditas partners with Creditas $255m Volanty, a used car Creditas $260m Series Creditas acquire Creditas invests in Minuto Seguros, a NuBank, world’s largest VEF raises Series E
Slide 13: Share price, NAV/share and the premium/discount
Share price, NAV/share and the premium/discount NAV/share & share price development 7,0 Premium/(Discount) to NAV 60% 6,0 40% 5,0 20% 4,0 0% 3,0 -20% 2,0 -40% 1,0 -60% 0,0 -80% dec-15 jun-16 dec-16 jun-17 dec-17 jun-18 dec-18 jun-19 dec-19 jun-20 dec-20 jun-21 dec-21 jun-22 dec-15 jun-16 dec-16 jun-
Slide 14: Nasdaq main board listing and strong through cycle shareholder base
Nasdaq main board listing and strong through cycle shareholder base Owner Shares Holding % VEF shares commenced trading on Nasdaq Stockholm Main Market, Ruane, Cunniff & Goldfarb 217,718,740 20.9% Mid Cap-segment, on June 1. Libra Fund 120,685,142 11.6% Important step in our journey and expected to:
Slide 15: VEF investment case and outlook
VEF investment case and outlook Market pain taken – we stand behind our NAV We are confident that our NAV reflects the current market reality. Top 3 holdings in a very strong place – Creditas, Konfío and Juspay At this point in the cycle we target and are close to achieving everything we want from o
Slide 16: Appendix
Appendix
Slide 17: 2Q22 income statement
2Q22 income statement Ver cxmesein se md To ET Result from financial assets at fair value through profit or loss -295,584 Dividend and coupon income 195 194 98 97 Other income 164 - fe) - Administrative and operating expenses -4,496 -3,818 -2,004 -2,902 Employee incentive programs -205 -198 -99 -69
Slide 18: 2Q22 balance sheet
2Q22 balance sheet VEF Jun 30, 2022 NON-CURRENT ASSETS. Tangible non-current assets Property, plant and equipment 26 402 Total tangible non-current assets 26 102 Financial non-current assets Financial assets at fair value through profit or loss 4 Equity financial assets 426,087 Joost Liquid financia
Slide 19: VEF portfolio summary
VEF portfolio summary Invested amount 2Q22 fair value Company Country Segment Investment date Ownership % (USD mln) (USD mln) Brazil Asset focused ecosystem Dec-17 8.9% 98.4 195.9 Mexico Diversified FS for Mexican SMEs Jun-18 10.3% 56.5 61.1 India Mobile payments platform Apr-20 10.2% 21.1 47.5 Braz
Slide 20: Portfolio NAV distribution by geography – excl. cash
Portfolio NAV distribution by geography – excl. cash Africa EMEA Pakistan Emerging 2% 7% 4% Europe 4% South Asia 20% Mexico 14% India 17% Brazil 59% LatAm 73% 20