Vef Ab · OMXSTO:VEFAB
Vef Ab — Vostok Emerging Finance — Q4 2018 Earnings Presentation
34 slides from Vef Ab's earnings presentation, February 2019
Slide 1: 4Q18 Results Presentation
>EF Vostok Emerging Finance 4Q18 Results Presentation
Slide 2: 4Q18 Key Events
4Q18 Key Events Key Events during the Fourth Quarter • VEF invested an additional USD 1.75 mln in iyzico as part of a broader bridge round increasing its stake to 20.8% (prev. 20.1%). • iyzico and Creditas became the largest holdings in the portfolio representing a combined 25% of the NAV, a reflect
Slide 3: FY/4Q18 Financial Highlights
FY/4Q18 Financial Highlights Financial Result • Net result for the year 2018 was USD 3.45 million (mln) (2017: 53.2 mln). Earnings per share were USD 0.01 (2017: 0.08). • The positive net result for 2018 is primarily driven by the mark up in valuation of iyzico, TransferGo, FinanZero and Magnetis. •
Slide 4: 4Q18 Financial Highlights
4Q18 Financial Highlights Net Asset Value • The net asset value (NAV) of VEF was USD 201.42 mln as at YE18 (YE17: USD 198.56 mln), which is an increase of 1.4% in USD over the year. • Net asset value per share was USD 0.31 (YE17: USD 0.30). • NAV in SEK was 1,806 mln as at YE18 (YE17: SEK 1,635 mln)
Slide 5: 4Q18 Income Statement
4Q18 Income Statement a Oct 1,2018- ‘Oct 1,201 Expressed in USD thousands Dec31, 2017 Dec31,2018 Dec 31,2017 Result from financial assets at fair value through profit or loss* 6,213 52,490 -2,974 11,020 Dividend and coupon income 3,022 4,345 1,767 Total operating profit 12,787 Operating expenses Gen
Slide 6: 4Q18 Balance Sheet
4Q18 Balance Sheet Expressed in USD thousands 18 Dec 31,2017 NON-CURRENT ASSETS ‘Tangible non-current assets Property, plant and equipment Total tangible non-current assets Financial non-current assets Equity financi A 183,887 Liquid financial assets 5518 Financial assets at fair value through profi
Slide 7: VEF Portfolio
VEF Portfolio Invested Amount Dec'18 Fair Value Investment Company Geography Business Type % Ownership (USD mln) (USD mln) Date Turkey Payment Processing 20.8% 10.7 25.9 Jan-17 Brazil Secured Lending Platform 10.0% 25.0 25.0 Dec-17 Africa Mobile Money Marketplace 6.8% 14.6 16.4 Oct-15 Brazil Persona
Slide 8: 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 9: Portfolio Commentary
Portfolio Commentary • 11 holdings in the portfolio today (12 at the end of Q4), 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,
Slide 10: Portfolio NAV Distribution by Geography (ex cash)
Portfolio NAV Distribution by Geography (ex cash) 10
Slide 11: VEF Share Price and NAV/Share Evolution
VEF Share Price and NAV/Share Evolution Rights issue Date Latest Share Price NAV / Share * Discount NAV * Market Cap (SEK) (SEK) (USD mln) (USD mln) Feb 18, 2019 2.00 2.78 28% 201.4 142.7 * As at Dec 31, 2018 11
Slide 12: VEF Shareholder Structure
VEF Shareholder Structure Owner Holding, SDRs Holding, % Libra Fund* 161,110,674 24.4% Ruane Cunniff & Goldfarb* 118,878,736 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 13: 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 14: 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 14
Slide 15: 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 16: Our Portfolio Companies
>EF Vostok Emerging Finance Our Portfolio Companies
Slide 17: VEF Portfolio
VEF Portfolio Invested Amount Dec'18 Fair Value Investment Company Geography Business Type % Ownership (USD mln) (USD mln) Date Turkey Payment Processing 20.8% 10.7 25.9 Jan-17 Brazil Secured Lending Platform 10.0% 25.0 25.0 Dec-17 Africa Mobile Money Marketplace 6.8% 14.6 16.4 Oct-15 Brazil Persona
Slide 18: Iyzico
Iyzico • Type: Payment Processor Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 20.8% • Key region: Turkey Leading payment solutions provider for online retailers in 1 Turkey. Has over 26k live merchants and 410k seller accounts 2 under marketplaces. Turkey is the largest cons
Slide 19: 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 $3tn
Slide 20: JUMO
JUMO • Type: Mobile Money Marketplace Key • Founded: 2013 Year of investment: 2015 Facts • Ownership Stake: 6.8% • Key region: South Africa Largest-scale, low-cost, financial services platform for 1 FINANCIAL SERVICE PROVIDERS emerging markets. BARC LETH OM TAMR JUMO Capital Focus on key mobile mone
Slide 21: 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 22: 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 23: REVO
REVO • Type: Merchant payments / consumer credit Key • Founded: 2012 Year of investment: 2015 Facts • Ownership Stake: 25% • Key region: Russia Key Merchant Partners Works with Russia’s online and offline merchants at POS to 1 increase conversion and basket size. Focus on small-ticket categories wit
Slide 24: REVO metrics
Metrics Dec 2016 Dec 2017 Dec 2018 No. of active stores 1,678 3,815 4,674 No. of installments granted 40,142 49,950 59,224 Avg. installment plan (RUB) 4,913 5,895 8,585 Avg. duration of installment plan (months) 4.9 4.6 6.3 Connected stores, # Monthly installment plans issued, # 5 000 100 000 4 000
Slide 25: TransferGo
TransferGo • Type: Cross Border Remittances Key • Founded: 2012 Year of investment: 2016 Facts • Ownership Stake: 16.2% • Key region: EU Low-cost cross-border remittance provider focusing on 1 Western to Eastern Europe. Targeting blue-collar workers, some of the most consistent 2 and regular remitta
Slide 26: TransferGo metrics
TransferGo Metrics Dec 2016 Dec 2017 Dec 2018 No. of active users* 51,792 82,189 136,197 Money flow (GBP mln) 19.1 31.2 45.9 Avg. ticket size (GBP) 336 346 305 Active Users*, # Monthly Money Flow, GBP mln 150 000 50 100 000 40 30 50 000 20 10 0 0 mar-16 mar-17 mar-18 sep-15 sep-16 sep-17 sep-18 dec-
Slide 27: Tinkoff Bank
Tinkoff Bank • Business Type: Digital Banking Key • Founded: 2006 Year of investment: 2007 Facts • Ownership Stake: 0.3% • Key region: Russia • 3Q18 Net Income up to ₽7.3 bln for a 44% growth YoY • Growing F&C income pushes ROA up to 9.6% in 3Q18 • Record high profit with stable equity sends 3Q18 RO
Slide 28: Tinkoff Bank New Lines of Business Driving Value Creation at Tinkoff
Tinkoff Bank New Lines of Business Driving Value Creation at Tinkoff Current Accounts SME Mortgages Investments All currency data are in RUB bln unless otherwise stated 28
Slide 29: Magnetis
Magnetis • Type: Digital investment advisor Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 16.9% • Key region: Brazil Leading Brazilian digital investment advisor, offering 1 automated investment portfolios tailored to clients requirements. Large addressable market of US$720 b
Slide 30: 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 Pioneering digital marketplace for consumer loans in 1 Brazil. 1 2 Applications from Highest quality applicant
Slide 31: Nibo
Nibo • Type: Accounting SaaS Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 15.7% • Key region: Brazil Nibo SaaS dashboard Leading Brazilian accounting SaaS provider for SMBs and 1 accountants SMBs Accountants 3 Nibo for Accounting General Has over 67k paying SMBs serviced thr
Slide 32: Finja
Finja • Type: Mobile payments / loans marketplace Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 20.4% • Key region: Pakistan Pakistan, a scale emerging market, running behind India in 1 fintech evolution, but catching up. Finja, leading mobile wallet play in Pakistan, with bo
Slide 33: Outlook and Guidance 2019
>EF Vostok Emerging Finance Outlook and Guidance 2019
Slide 34: 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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