Slide 1: Investor Presentation
Investor Presentation April 2024 The emerging market fintech investor
Slide 2: Agenda
Agenda A Introduction to VEF B 1Q 2024 Results Overview C Key Portfolio Companies D Sustainability 2
Slide 3: VEF at a Glance − the emerging market fintech investor
VEF at a Glance − the emerging market fintech investor Riding one of the strongest multi-year secular growth trends in some of the world’s fastest-growing markets Listed investment company • Listed in Sweden since Dec-2015 ̶ VEF AB (publ) • We were spun out from VNV Global, with a 3% stake in Tinkof
Slide 4: Clear investment approach coupled with deep fintech expertise
Clear investment approach coupled with deep fintech expertise Targeted investment approach with a clear mandate… …and deep expertise across the fintech spectrum • Consumer SECTOR CREDIT • SME • Secured We target all lines of financial services inclusive of payments, credit and • Unsecured savings/in
Slide 5: A diversified portfolio across scale emerging markets
A diversified portfolio across scale emerging markets VEF has backed entrepreneurs across the emerging world since inception in 2015 Portfolio companies Portfolio composition As at 31 March 2024 Russia1 Geographic Breakdown2 Emerging Pakistan Emerging Europe 1% Europe 8% Mexico Pakistan 16% $466M2 B
Slide 6: Strong track record of investing in benchmark private fintech names across EM
Strong track record of investing in benchmark private fintech names across EM We are now present in one of the top 3 private fintech assets each in Brazil, Mexico & India. We have a track record of backing and successfully exiting fintech champions in Russia and Turkey Current investments in two of
Slide 7: Clear mandate with a proven strategy – strong track record of delivering returns
Clear mandate with a proven strategy – strong track record of delivering returns Proven track-record in value-creation and Ability to identify and access benchmark Driving our strong history of long-term successful exits private fintech names across EM shareholder return +65% IRR Brazil NAV/share &
Slide 8: Backed by blue-chip institutional capital
Backed by blue-chip institutional capital Long-term supportive institutional shareholder base Strong conviction in VEF’s investment appraisal Leading institutional managers maintain long-term holdings and have consistently supported Key shareholders have committed to co-investments in follow-on roun
Slide 9: Established reputation and deep relationships within local ecosystems provides a competitive moat
Established reputation and deep relationships within local ecosystems provides a competitive moat and access to unique opportunities 1 Brazil • Deep sector expertise and a global lens to emerging market fintech Unique global • Differentiated insights from our global portfolio, continuous pipeline di
Slide 10: Management team
Seasoned management with extensive EM fintech expertise, supported by a high calibre, experienced team >6% collective holding in VEF1 Investment team Operations team Management team David Nangle Alexis Koumoudos Helena Caan Mattsson 2015 2016 2017 CEO CIO GC/Head of Sustainability • Experience: 20+
Slide 11: Agenda
Agenda A Introduction to VEF B 1Q 2024 Results Overview C Key Portfolio Companies D Sustainability 11
Slide 12: NAV of USD 448 mln in 1Q24
12 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 imp
Slide 13: 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 14: Valuation approach and key take-aways (1/3)
Valuation approach and key take-aways (1/3) T0 T + 12 months Latest significant equity transaction T0 – T+12 months T+12 months onwards… Mark-to-Model (MTM) • Significant equity transaction within the last 12 months serves as the primary anchor for our fair value analysis. • Post 12 months fair valu
Slide 15: MTM valuation methodology evolution (2/3)
MTM valuation methodology evolution (2/3) 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 Gros
Slide 16: Valuation approach and key take-aways (3/3)
Valuation approach and key take-aways (3/3) 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
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: Agenda
Agenda A Introduction to VEF B 1Q 2024 Results Overview C Key Portfolio Companies D Sustainability 23
Slide 24: VEF portfolio overview
VEF portfolio overview Company Description Stake1 % of Portfolio1 Company Description Stake1 % of Portfolio1 Gringo is building a “super-app” Brazil’s leading digital-first secured 9.8% 3.7% 8.8% 46.2% for drivers in Brazil lending platform Solfácil is building a digital ecosystem for solar energy 2
Slide 25: VEF key portfolio companies
VEF key portfolio companies Provides digital banking products including Brazil’s leading digital-first secured lending Leading mobile payments platform for online Overview platform credit, payments and software tools for merchants in India Mexican SMEs - Payments orchestration platform - Auto equity
Slide 26: Creditas – Brazil’s leading digital-first secured lending platform
Creditas – Brazil’s leading digital-first secured lending platform Market opportunity Creditas value proposition Key stats1 Extraordinary interest rates… Addressing credit affordability through Average APR on lending products in Brazil (2023) collateralized lending $879 mln 35+ 417% Raised across 6
Slide 27: Creditas has moderated growth while accelerating its path to profitability
Creditas has moderated growth while accelerating its path to profitability 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 BR
Slide 28: Delivered healthy 4Q23 numbers with continuously improving margins
Delivered healthy 4Q23 numbers with continuously improving margins 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
Slide 29: Konfío – Mexico’s leading digital financial services provider for SMEs
Konfío – Mexico’s leading digital financial services provider for SMEs Market opportunity Konfío value proposition Key stats Only 11% of SMEs in Mexico have access to credit Konfío gives a neglected segment of the market Traditional banks access… Large informal Approval time & 10 minutes, 2-3 weeks,
Slide 30: Juspay – leading mobile payments platform for online merchants in India
Juspay – leading mobile payments platform for online merchants in India Market opportunity Juspay value proposition Serving a $750 bln+ complex Indian digital Solving the payment experience gap through industry’s first independent Payment Software Platform payment market1 Value of digital transactio
Slide 31: Juspay KPIs and product suite
Juspay KPIs and product suite Leading mobile payments platform for online merchants in India Key stats Product suite $100 bln+ ~5x Payments orchestration platform Payments authentication UPI in a box Annualised TPV TPV growth in last 3 ✓ India’s leading ✓ Payment ✓ Highly reliable years payment brow
Slide 32: Agenda
Agenda A Introduction to VEF B 1Q 2024 Results Overview C Key Portfolio Companies D Sustainability 32
Slide 33: VEF sustainable investing
VEF sustainable investing Sustainability as a fundamental part of VEF’s business model Our capital plays an important role in furthering financial inclusion Successfully refinanced sustainability bond in November 2023 VEF supports the UN Sustainable Development Goals VEF proprietary sustainability f
Slide 34: 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