Vef Ab · OMXSTO:VEFAB
Vef Ab — Vostok Emerging Finance — Q2 2019 Earnings Presentation
34 slides from Vef Ab's earnings presentation, August 2019
Slide 1: 2Q19 Results Presentation
>EF Vostok Emerging Finance 2Q19 Results Presentation
Slide 2: 2019 Highlights
2019 Highlights 2 Portfolio Exits in 2019: Tinkoff & iyzico • Tinkoff Bank: 6.1x CoC return and 65% IRR • iyzico: 3.1x CoC return and 63% IRR Creditas: Recent investment round led by SoftBank • Our largest portfolio company, Creditas, recently raised a USD 231 mln Series D investment round led by So
Slide 3: 2Q19 Financial Highlights
2Q19 Financial Highlights Net asset value • NAV of VEF’s portfolio increased by 17% during the quarter to USD 238.7 mln or USD 0.37 per share. • In local currency, NAV was SEK 2,212 mln and SEK 3.41 per share. • Cash position at the end of 2Q19 was USD 25.2 mln pre-iyzico fund flows. Financial resul
Slide 4: 2Q19 Income Statement
>EF 2Q19 Income Statement Expressed in USD thousands Result from financial assets at fair value through profit or loss! Dividend and coupon income Jan 1, 201! Jun 30, 2019 39,934 251 Jan 1, 201 Jun 30,2018 21,976 1,887 Total operating profit Operating expenses General administrative expenses Employe
Slide 5: 2Q19 Balance Sheet
>EF 2Q19 Balance Sheet Expressed in USD thousands NON-CURRENT ASSETS Tangible non-current assets Property, plant and equipment Total tangible non-current assets Financial non-current assets Financial assets at fair value through profit or loss Equity financial assets Liquid financial assets Other fi
Slide 6: VEF Business Overview and Update
VEF Business Overview and Update
Slide 7: 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 8: 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 8
Slide 9: Portfolio Commentary
Portfolio Commentary As at June 30th, 2019 • There were 11 holdings in the portfolio, diversified by geography, business type and stage of development. • Exits – Completed/announced exits of Tinkoff & iyzico in 1H19, both yielding 60%+ IRRs each. • Creditas and Konfio are starting to emerge as the r
Slide 10: Portfolio NAV Distribution by Geography (ex cash)
Portfolio NAV Distribution by Geography (ex cash) 10
Slide 11: VEF Portfolio
VEF Portfolio Invested Amount Jun'19 Fair Value Investment Company Geography Business Type % Ownership (USD mln) (USD mln) Date Brazil Secured Lending Platform 9.7% 48.5 73.2 Dec-17 Turkey Payment Processing 21.1% 11.0 33.9 Jan-17 Mexico SME Lending 11.7% 25.0 25.0 Jun-18 Russia Payments & Consumer
Slide 12: Tinkoff Exit – 65% IRR
Tinkoff Exit – 65% IRR Tinkoff – Russia’s largest digital bank Return on Investment Cost of position (USD mln) 19 Exit Rationale Total proceeds (USD mln) 116.8 Date entered position Jun-15 1. A publicly listed security Date exited position Feb-19 We are focused on investing in the private space, pro
Slide 13: iyzico Exit – 63% IRR
iyzico Exit – 63% IRR Return on Investment iyzico – Turkey’s leading online payments solution Cost of position (USD mln) 11 Total proceeds (USD mln) 33.9 Exit Rationale Date entered position Jan-17 Date exited position Sep-19 1. Founders desire to sell Years in position 2.3 In general, we back great
Slide 14: VEF Shares and Corporate Governance
VEF Shares and Corporate Governance
Slide 15: Share Price, NAV/Share and the Discount
Share Price, NAV/Share and the Discount Share Price, NAV/share Discount to NAV Date Latest Share Price NAV / Share * Discount NAV * Market Cap (SEK) (SEK) (USD mln) (USD mln) Aug 9, 2019 2.60 3.41 23.8% 238.7 180.1 * As at June 30, 2019 15
Slide 16: Our IR and Marketing Focus to Date
Our IR and Marketing Focus to Date Investor marketing and conversion has been excellent, the story resonates and we have a growing following in the market. We continually have new smaller shareholders in the base while a number of size investors are looking for blocks. Equity Research Formal Coverag
Slide 17: VEF Shareholder Structure
VEF Shareholder Structure Owner Holding, SDRs Holding, % Libra Fund* 161,110,674 24.4% Ruane Cunniff & Goldfarb* 118,888,736 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 18: 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 19: Our Portfolio Companies
>EF Vostok Emerging Finance Our Portfolio Companies
Slide 20: VEF Portfolio
VEF Portfolio Invested Amount Jun'19 Fair Value Investment Company Geography Business Type % Ownership (USD mln) (USD mln) Date Brazil Secured Lending Platform 9.7% 48.5 73.2 Dec-17 Turkey Payment Processing 21.1% 11.0 33.9 Jan-17 Mexico SME Lending 11.7% 25.0 25.0 Jun-18 Russia Payments & Consumer
Slide 21: Creditas
Creditas • Type: Secured consumer lending Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 9.7% • 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 USD 3
Slide 22: Creditas, PagSeguro, XP Investimentos
Creditas PagSeguro XP Investimentos 22
Slide 23: Konfío
Konfío • Type: Digital SME Lending Key • Founded: 2014 Year of investment: 2018 Facts • Ownership Stake: 11.7% • Key region: Mexico Konfio is a 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
Slide 24: REVO
REVO • Type: Merchant payments / consumer credit Key • Founded: 2012 Year of investment: 2015 Facts • Ownership Stake: 25% • Key region: Russia Revo provides financing options for leading merchants in Key Merchant Partners 1 Russia, allowing millions of shoppers to buy now and pay later. Works with
Slide 25: JUMO
JUMO • Type: Mobile Money Marketplace Key • Founded: 2013 Year of investment: 2015 Facts • Ownership Stake: 6.8% • Key region: South Africa Jumo is the largest and fastest-growing technology 1 platform operating inclusive mobile financial services FINANCIAL SERVICE PROVIDERS marketplaces in emerging
Slide 26: TransferGo
TransferGo • Type: Cross Border Remittances Key • Founded: 2012 Year of investment: 2016 Facts • Ownership Stake: 16.2% • Key region: EU TransferGo is a rapidly-growing, low-cost, cross-border 1 remittance provider focusing on Western to Eastern Europe. Targeting blue-collar workers, some of the mos
Slide 27: TransferGo
TransferGo Source: OECD Database, Eurostat, IMF 27
Slide 28: 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 29: Nibo
Nibo • Type: Accounting SaaS Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 20.1% • Key region: Brazil Nibo SaaS dashboard Nibo is the leading Brazilian accounting SaaS provider for 1 SMBs and accountants. SMBs Accountants 3 Nibo for Accounting General Has over 100k paying SMB
Slide 30: FinanZero
FinanZero • Type: Consumer Loan Marketplace Key • Founded: 2016 Year of investment: 2016 Facts • Ownership Stake: 18.0% • Key region: Brazil Business model - online broker of consumer loans FinanZero is a pioneering digital marketplace for consumer 1 loans in Brazil. 1 2 Applications from Highest qu
Slide 31: Magnetis
Magnetis • Type: Digital investment advisor Key • Founded: 2012 Year of investment: 2017 Facts • Ownership Stake: 16.9% • Key region: Brazil Magnetis is the leading Brazilian digital investment 1 advisor, offering automated investment portfolios tailored to clients requirements. Large addressable ma
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 is a scale emerging market running behind India 1 in fintech evolution, but is catching up. Finja is a leading mobile wallet play in Pakistan,
Slide 33: Outlook and Guidance 2019
>EF Vostok Emerging Finance Outlook and Guidance 2019
Slide 34: Outlook for 2019 and beyond
Outlook for 2019 and beyond Exciting diversified VEF has assembled an exciting and diversified fintech portfolio, with sizable holdings in some of the best portfolio fintech assets across the emerging world. 2019 saw our first 2 portfolio exits: Tinkoff (Russia) and iyzico (Turkey), both generating
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